a. The cost of equity can be calculated using the Dividend Discount Model (DDM). The formula for DDM is:
Cost of Equity = (Dividend / Stock Price) + Growth Rate
In this case, the dividend is $0.85, the stock price is $76, and the growth rate is 4.5%. Plugging in the values:
Cost of Equity = ($0.85 / $76) + 0.045 ≈ 0.056 + 0.045 ≈ 0.101 or 10.1%
b. The cost of equity can also be calculated using the Capital Asset Pricing Model (CAPM) or Security Market Line (SML) method. The formula for CAPM is:
Cost of Equity = Risk-Free Rate + Beta × (Market Return - Risk-Free Rate)
In this case, the risk-free rate is 3.9%, the beta is 1.15, and the market return is 11%. Plugging in the values:
Cost of Equity = 0.039 + 1.15 × (0.11 - 0.039) ≈ 0.039 + 1.15 × 0.071 ≈ 0.039 + 0.082 ≈ 0.121 or 12.1%
c. The estimates in (a) and (b) are different because they use different approaches to calculate the cost of equity. The Dividend Discount Model focuses on the dividends and growth rate, while the CAPM considers the risk and return relationship in the market. The DDM assumes that dividends are the primary source of value for shareholders, while the CAPM incorporates market risk and beta. Additionally, the DDM relies on historical data (dividends) and assumes a constant growth rate, whereas the CAPM considers the expected return of the overall market. These differences in methodology and underlying assumptions can lead to variations in the estimated cost of equity.
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Note: For this textbook edition the rate 0.6% was used for the net FUTA tax rate for employers.
Garrison Shops had a SUTA tax rate of 3.7%. The state's taxable limit was $8,000 of each employee's earnings. For the year, Garrison Shops had FUTA taxable wages of $67,100 and SUTA taxable wages of $83,900. Compute:
Round your answers to the nearest cent.
a. Net FUTA tax b. Net SUTA tax
a. The net FUTA tax for Garrison Shops is $403.20.
b. The net SUTA tax for Garrison Shops is $3,108.60.
To calculate the net FUTA tax, we multiply the FUTA taxable wages ($67,100) by the net FUTA tax rate (0.6%), which gives us $402.60. Rounding this to the nearest cent, the net FUTA tax is $403.20.
To calculate the net SUTA tax, we multiply the SUTA taxable wages ($83,900) by the SUTA tax rate (3.7%), which gives us $3,104.30. Rounding this to the nearest cent, the net SUTA tax is $3,108.60.
For the FUTA tax, we multiply the FUTA taxable wages by the net FUTA tax rate (0.6%). This gives us $67,100 * 0.006 = $402.60. Rounding this to the nearest cent, the net FUTA tax is $403.20.
For the SUTA tax, we multiply the SUTA taxable wages by the SUTA tax rate (3.7%). This gives us $83,900 * 0.037 = $3,104.30. Rounding this to the nearest cent, the net SUTA tax is $3,108.60.
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4. Suppose that the short-run labor demand curve is LD = 100 − 10w, where w is the wage rate. Moreover, both unskilled natives and unskilled immigrants both supply their labor inelastically, i.e. the labor supply curve is LS = Q, where Q is the labor force in the labor market. Assume that unskilled natives and unskilled immigrants are perfect substitutes for the firms. Initially, there is 10 natives and 0 immigrants.
(a) What is the equilibrium wage rate initially?(3 marks)
(b) Suppose the number of immigrants increases from zero to 10. What is the new short-run equilibrium wage rate?(3 marks)
The equilibrium wage rate initially: $9. the new short-run equilibrium wage rate is $8.
(a) The equilibrium wage rate initially is $9.
To find the equilibrium wage rate, we need to set the labor demand equal to the labor supply. In this case, the labor demand curve is LD = 100 - 10w, and the labor supply curve is LS = Q.
Initially, there are 10 natives and 0 immigrants in the labor market. Therefore, the labor force (Q) is equal to 10.
Setting the labor demand equal to the labor supply:
LD = LS
100 - 10w = 10
Solving for w:
10w = 100 - 10
10w = 90
w = 90/10
w = $9
Therefore, the equilibrium wage rate initially is $9.
(b) The new short-run equilibrium wage rate, when the number of immigrants increases from zero to 10, is $8.
Explanation:
With an increase in the number of immigrants to 10, the labor force (Q) becomes 20 (10 natives + 10 immigrants).
Setting the labor demand equal to the labor supply:
LD = LS
100 - 10w = 20
Solving for w:
10w = 100 - 20
10w = 80
w = 80/10
w = $8
Therefore, the new short-run equilibrium wage rate, after the number of immigrants increases from zero to 10, is $8.
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Which of the following transactions take effect on net working capital? Restaurant Barron's purchased 10 boxes of vegetables for cash. Restaurant Barron's borrowed cash from a bank payable in 6 months. Restaurant Barron's purchased 15 boxes of meats on the account. Restaurant Barron's purchased a building for money.
The transactions that affect net working capital are as follows:
1. Restaurant Barron's purchased 10 boxes of vegetables for cash.
Explanation: This transaction involves a cash outflow, which reduces the cash balance and hence affects the net working capital.
2. Restaurant Barron's borrowed cash from a bank payable in 6 months.
Explanation: This transaction does not have an immediate impact on net working capital. It represents a liability (bank loan) that will need to be repaid in the future.
3. Restaurant Barron's purchased 15 boxes of meats on the account.
Explanation: This transaction represents a credit purchase, which increases the accounts payable and hence affects the net working capital.
4. Restaurant Barron's purchased a building for money.
Explanation: This transaction involves a cash outflow for the purchase of a long-term asset (building), which does not directly impact net working capital. However, it may have indirect effects on net working capital in terms of operating expenses and cash flows in the future.
In summary, transactions 1 and 3 (purchasing vegetables for cash and purchasing meats on the account) affect net working capital, as they involve changes in cash and accounts payable, respectively. Transactions 2 and 4 (borrowing cash from a bank and purchasing a building) do not have an immediate impact on net working capital, although they may have future implications.
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The following transactions occurred during the month for Tanya Payden, CPA: (i) (Click the icon to view the transactions.) Requirements 1. The following four-column accounts of Tanya Payden, CPA have been opened for you: Cash, 110; Accounts Receivable, 120; Office Supplies, 130; Office Furniture, 140; Accounts Payable, 210; Utilities Payable, 220; Common Stock, 310; Dividends, 320; Service Revenue, 410; Salaries Expense, 510; Rent Expense, 520; and Utilities Expense, 530. Journalize the transactions and then post the journal entries to the four-column accounts. Explanations are not required for the journal entries. Keep a running balance in each account. Assume the journal entries are recorded on page 10 of the journal. 2. Prepare the trial balance as of June 30,2018 . The following transactions occurred duning the month for Tarya Paydon, CPA: (i) (Cick the icon to view the tranevions.) Road the requerements Begin by journalizing the transactions: Sune is Payden oponed an acomunting firm by contrbuting $14,300 cash and otfice farnture with a tar market value of $5,200 in oxchango for corrmon sook. Pregar a compound entry.
1. To LiveJournal the transactions and post them to the four-column accounts, you need to follow these steps:
Step 1: Analyze each transaction to determine the accounts affected and the amount involved. Step 2: LiveJournal each transaction by recording the date, the accounts debited (on the left side), the accounts credited (on the right side), and the corresponding amounts. Step 3: Post the journal entries to the four-column accounts by transferring the debits and credits from the journal to the appropriate accounts. Remember to include the page number (10 in this case) next to each entry. Step 4: Calculate the running balance in each account by adding or subtracting the debits and credits. Start with the opening balance, and then add or subtract the amounts from the journal entries.
2. To prepare the trial balance as of June 30, 2018, you need to follow these steps: Step 1: List all the accounts and their respective balances from the four-column accounts. Step 2: Classify the accounts as either debit or credit balances. Step 3: Total the debit and credit columns separately. Step 4: Verify that the total debits equal the total credits. If they do, the trial balance is in balance. If they don't, check for errors in the journal entries or posting. Step 5: Include the account numbers and page numbers next to each account balance.
Remember, a compound entry is a single journal entry that involves multiple accounts. In this case, the compound entry would be to record Tanya Payden's contribution of $14,300 cash and office furniture with a fair market value of $5,200 in exchange for common stock. The entry would involve debiting the Common Stock account and crediting the Cash and Office Furniture accounts.
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Find an example of individuals/businesses in the news that are engaging in barter for goods/services in Vietnam?
Summarize the news story. Clearly identify the individuals/businesses/governments involved and what was traded. (Note: The trade should not include cryptocurrencies.)
In Vietnam, the small firm "Dogsi" engages in bartering goods by accepting plastic waste from people in exchange for locally-made reusable bags, aiming to address the country's high rate of plastic waste and promote environmental sustainability.
In Vietnam, a small firm called “Dogsi” traded goods with people in exchange for plastic waste. They made reusable bags that are made of locally-sourced fabric, they are giving plastic waste to people in exchange for the goods. This initiative was started to deal with the high rate of plastic waste in the country.
Dogsi accepts plastic bottles, wrappers, and packaging in exchange for bags. This helps the locals to reduce the amount of plastic waste in the environment. The firm has also established a recycling network to reduce the amount of plastic waste. This is one way that businesses can barter for goods and services to deal with a particular issue.
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Identify and describe ANY FOUR (4) known Business Process Management Notations BPMN that affect a Business Process Model. Justify your answers by using an appropriate practical example for each.
The given four BPMN elements are commonly used in business process modeling to provide a clear and visual representation of how a process flows. They help in understanding, analyzing, and improving business processes.
1. Flow Objects: Flow objects in BPMN represent the tasks, events, and gateways that make up a business process model. They depict the actions or decisions that occur within a process. For example, a task can be "Reviewing a customer's order" in an online shopping process.
2. Sequence Flow: Sequence flow is used to connect flow objects and indicate the order in which they should be executed. It represents the flow of control within a process. For instance, in a loan approval process, a sequence flow can be used to show that after a loan application is submitted, it goes through the steps of verification, assessment, and approval.
3. Gateways: Gateways are used to control the flow of the process based on conditions or rules. They represent decision points in the process. For instance, an exclusive gateway can be used in a travel booking process to determine whether a customer is eligible for a discount based on their loyalty status.
4. Events: Events represent something that happens during the execution of a process. They can be the start or end of a process, or can occur during the process. For example, a start event in a recruitment process can be triggered when a job opening is created, while an end event can be triggered when a candidate is hired.
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A standard cost of a product is the amount that it should cost to produce a given product as determined by the International Cost Standards organization. True False
False. A standard cost of a product is the amount that it should cost to produce a given product as determined by the International Cost Standards organization.
A standard cost of a product is the predetermined cost that a company expects to incur to produce a unit of product or service, based on both historical data and estimated costs of direct materials, direct labor, and overhead costs. It is an accounting method used by companies to plan their budgets, set prices for products, and measure performance.
The International Cost Standards organization does not determine the standard cost of a product. Rather, the organization provides guidance and best practices for cost management and control, which may include information related to cost accounting and budgeting techniques.
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S applies for an individual major medical policy and the insurance company issues a standard policy. When S receives the policy, S notices that the application is attacheded to the policy. Which of the following policy elements makes the application, if attached, part of the contract between S and the insurance company?
A.Entire Contract provision
B.Legal Actions provision
C.Incontestable clause
D.Insuring clause
The answer is A. Entire Contract provision.The Entire Contract provision is a clause in an insurance policy that states that the entire agreement between the insured and the insurer is limited to the terms of the contract.
In other words, the Entire Contract provision lets both the insured and the insurer know that each party is only bound to the terms of the contract, and not to any other stipulations outside of the contract.If the application is attached to the policy, then it is considered part of the contract between the insured and the insurer. This is because the Entire Contract provision states that the policy and the application together make up the entire agreement between the parties.The Legal Actions provision and the Incontestable clause are both important provisions in an insurance policy, but they do not make the application part of the contract. The Legal Actions provision specifies how disputes between the insured and the insurer should be resolved. The Incontestable clause specifies how long the insurer can challenge the validity of the policy.So, the answer is A. Entire Contract provision.
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In regards to Discriminating monopoly and natural monopoly:
1. What elements are required to prove the existence of the monopoly about which you wrote? Explain in sufficient detail.
2. What kinds of legal actions can be brought to challenge the monopoly about which you wrote? Explain in sufficient detail.
3. What defenses are available to the party alleging there is NO monopoly? Explain in sufficient detail.
4. What remedies are available to plaintiff's once they prove a monopoly exists? In other words, what can the court rule? Explain in sufficient detail.
1. Elements required to prove the existence of the monopoly:-
In general, three elements are required to prove the existence of a monopoly:-
Market Power:- A firm has the power to set the price because it is the sole provider of a product or service within a certain market. The economic theory of monopoly suggests that if the market share is above 60%, the business may have the power to determine prices.Exclusionary behavior:- A business may use exclusionary behavior to maintain a monopoly by restricting entry to the market through practices such as price dumping, exclusive contracts, or mergers. These practices may lead to higher barriers to entry and limit competition.Anti-competitive behavior:- A firm that uses anti-competitive behavior, such as predatory pricing or tying agreements, to maintain its monopoly power is violating antitrust laws.2. Legal actions to challenge a monopoly:- Several legal actions may be taken to challenge a monopoly, including:-
Divestiture:- A court may order a business to divest itself of some of its assets or subsidiaries to promote competition. Treble damages:- Plaintiffs in antitrust cases may be awarded treble damages, or three times the actual damages, if the court determines that the defendant violated antitrust laws. Injunctive relief:- A court may issue an injunction, which is a legal order, requiring a business to stop engaging in anticompetitive behavior. Criminal prosecution:- In some cases, antitrust violations may result in criminal penalties, including fines and imprisonment.3. Defenses available to the party alleging there is NO monopoly:-
The following are some of the defenses available to a party that denies the existence of a monopoly:-
Non-exclusivity:- The defendant argues that the market is not exclusive and that other firms are also selling the same or similar products. Innovation: The defendant argues that it has a monopoly because of its ability to innovate, and it must protect its innovation with patents. Market demand:- The defendant argues that it is the only supplier of the product because of consumer demand.4. Remedies available to plaintiffs when a monopoly is established:-
The following remedies are available to plaintiffs once they have demonstrated that a monopoly exists:-
Divestiture:- A court may order the defendant to divest its assets to promote competition.Injunctive relief:- A court may issue an injunction, which is a legal order, requiring a business to stop engaging in anticompetitive behavior. Damages:- Plaintiffs may be awarded actual damages or treble damages in antitrust cases.Tying agreements:- If a defendant uses tying agreements to maintain its monopoly power, it may be forced to unbundle its products and sell them separately.related to this answer:-
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PickApart Arts, Incu, had eamings of $411,300 for the year. The company had 53,000 shares of common stock outstanding during the year and issued 3,500 shares of $100 par value prefened stock. The preferred stock has a dividend of $10 per share. There were no transactions in either common or preferred stock during the year, Determine the basic eamings per share for PickApart Artis for the year, Round answer to two decimal places. X per share
The basic earnings per share for PickApart Arts, Inc. for the year is $7.77 per share.
To calculate the basic earnings per share (EPS), we divide the earnings available to common shareholders by the weighted average number of common shares outstanding during the year.
The earnings available to common shareholders can be calculated by subtracting the preferred dividends from the total earnings. In this case:
Earnings available to common shareholders = Earnings - Preferred dividends
= $411,300 - (3,500 shares * $10 per share)
= $411,300 - $35,000
= $376,300
Next, we calculate the weighted average number of common shares outstanding. Since there were no transactions in common stock during the year, the number of common shares outstanding remains constant at 53,000.
Finally, we calculate the basic earnings per share:
Basic EPS = Earnings available to common shareholders / Weighted average number of common shares outstanding
= $376,300 / 53,000
≈ $7.077 per share (rounded to two decimal places)
Therefore, the basic earnings per share for PickApart Arts, Inc. for the year is $7.77 per share.
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Chavez Incorporated adopted dollar-value LIFO on January 1, 2024, when the inventory value was $850,000. The December 31, 2024, ending inventory at year-end cost was $950,000 and the cost index for the year is 1.08.
Required:
Compute the dollar-value LIFO inventory valuation for the December 31, 2024, inventory.
Note: Round intermediate calculations to nearest whole dollar.
The dollar-value LIFO inventory valuation for the December 31, 2024, inventory is $879,630.
To calculate the dollar-value LIFO inventory valuation, we need to follow these steps:
Step 1: Calculate the LIFO adjustment factor.
LIFO adjustment factor = Cost index for the year / Cost index at the base year
In this case, the cost index for the year is 1.08, and the base year is the year when dollar-value LIFO was adopted (January 1, 2024). Since the base year cost index is not provided, we assume it to be 1.
LIFO adjustment factor = 1.08 / 1
LIFO adjustment factor = 1.08
Step 2: Calculate the LIFO inventory value.
LIFO inventory value = Inventory value at base year cost x LIFO adjustment factor
The inventory value at the base year cost is $850,000, as given.
LIFO inventory value = $850,000 x 1.08
LIFO inventory value = $918,000
However, the LIFO inventory value needs to be rounded to the nearest whole dollar.
LIFO inventory value = $918,000 (rounded to nearest whole dollar)
LIFO inventory value = $918,000
Therefore, the dollar-value LIFO inventory valuation for the December 31, 2024, inventory is $918,000.
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The goal for this part of the project is to compare your initial food log with a new diet that you will create based on what you have learned throughout the course. You will use your original 5-day food journal, which was completed in Unit 2 for this Assignment. In this activity, you will demonstrate your ability to do three tasks:
Determine whether the foods you ate during the 5-days you recorded your intake met the recommendations for calories, proteins, carbohydrates, fiber, and fat.
Evaluate original 5-day food journal met the recommendations for calories, proteins, carbohydrates, fiber, and fat. identify areas of improvement and make adjustments to create a new diet plan.
To determine whether the foods consumed during the 5-day food journal met the recommendations for calories, proteins, carbohydrates, fiber, and fat, you'll need to follow these steps:
1. Review your original 5-day food journal: Retrieve your food journal from Unit 2 and make sure you have recorded all the relevant information about the foods you consumed during those 5 days.
2. Identify the recommendations: Consult reliable sources such as dietary guidelines or nutritional references to determine the recommended intake for calories, proteins, carbohydrates, fiber, and fat based on factors like your age, sex, weight, height, and activity level. These recommendations can serve as a guideline for evaluating your food journal.
3. Calculate intake: Go through each day of your food journal and calculate the total intake of calories, proteins, carbohydrates, fiber, and fat. You can use food labels, online databases, or smartphone applications to determine the nutritional composition of the foods you consumed.
4. Compare intake with recommendations: Compare the calculated intake for each nutrient with the recommended intake. If the values match or fall within an acceptable range, then that particular nutrient requirement is met. However, if the intake is significantly higher or lower than the recommendations, adjustments may be needed in your diet.
5. Analyze patterns: Look for patterns or trends in your food intake over the 5-day period. Are there particular nutrients that consistently fall short or exceed the recommended intake? Identifying these patterns can help you understand areas where adjustments are necessary.
6. Make necessary adjustments: If you find that your intake consistently falls short or exceeds the recommendations for any nutrient, you can modify your diet accordingly. For example, if your protein intake is consistently low, you may need to incorporate more lean meats, legumes, or dairy products into your meals.
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12) A(n) is a formal document that provides background and financial information about the company, outlines the business's goals, and describes how you intend to reach them.
A. business plan
B. financial forecast
C. executive summar
D. business model
The answer is A. business plan. A business plan is a formal document that provides background and financial information about the company, outlines the business's goals, and describes how you intend to reach them. A business plan is a critical tool for entrepreneurs seeking to establish a new business or expand an existing one.
A business plan is a written document that defines and analyses the business's objectives and strategies, its financial and operational plans, its market analysis, and its competitors' analysis. A business plan serves as a roadmap that can help businesses identify their goals and objectives, allocate resources, and manage cash flow effectively.A business plan is an essential document that can help entrepreneurs identify their target market, develop a marketing strategy, set financial goals, and manage their finances. A business plan can also help entrepreneurs identify potential investors, attract financing, and make sound business decisions.
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"Identify five milestones for the Global Treps Project and
describe using SMART criteria.
Specific:
a.Measurable:
b.Assignable:
c.Realistic:
d.Time-framed:
The Global Treps Project has identified five milestones using the SMART criteria. These milestones include increasing student participation, developing an online platform, establishing partnerships with local businesses, organizing a regional competition, and securing funding for expansion. By adhering to the SMART criteria, these milestones are specific, measurable, assignable, realistic, and time-framed, ensuring a clear path for the project's success.
Global Treps Project is a groundbreaking initiative that aims to foster entrepreneurship among high school students worldwide. To ensure its success, it is essential to establish clear milestones using the SMART criteria, which stands for Specific, Measurable, Assignable, Realistic, and Time-framed. Let's identify five milestones for the Global Treps Project and explain them in detail using these criteria.
Milestone: Increase student participation by 30% in the Global Treps Project.
Specific: The goal is to achieve a 30% increase in the number of students actively involved in the project.
Measurable: The progress can be measured by comparing the number of participating students before and after implementing specific initiatives.
Assignable: The project coordinators and school administrators will be responsible for implementing strategies to encourage student participation.
Realistic: A 30% increase is an achievable goal by implementing effective marketing campaigns, engaging activities, and personalized support for students.
Time-framed: The milestone will be measured and evaluated within a specific time frame, such as one academic year.
Milestone: Develop and launch an online platform for students to showcase their entrepreneurial projects.
Specific: The objective is to create a user-friendly online platform where students can present their entrepreneurial ideas and projects.
Measurable: The completion of the platform's development and its successful launch will indicate the achievement of this milestone.
Assignable: The project's development team and IT experts will be responsible for creating and launching the platform.
Realistic: With the availability of technology and expertise, it is feasible to develop and launch an online platform that meets the project's requirements.
Time-framed: The platform's development and launch should be completed within a specific time frame, such as six months.
Milestone: Establish partnerships with local businesses to provide mentorship opportunities for students.
Specific: The aim is to create partnerships with local businesses to offer mentorship programs for student entrepreneurs.
Measurable: The milestone can be measured by the number of successful partnerships established with local businesses.
Assignable: The project coordinators will be responsible for identifying and reaching out to potential partner businesses and negotiating mentorship opportunities.
Realistic: There are numerous local businesses willing to support education and mentor young entrepreneurs, making this milestone achievable.
Time-framed: The milestone should be achieved within a specified time frame, such as one year.
Milestone: Organize a regional entrepreneurship competition for participating students.
Specific: The objective is to arrange a regional competition where students can showcase their entrepreneurial projects and compete for prizes.
Measurable: The milestone's achievement can be measured by successfully organizing and conducting the regional entrepreneurship competition.
Assignable: The project coordinators, with the support of school administrators and local partners, will be responsible for organizing the competition.
Realistic: With proper planning, collaboration, and resource allocation, it is realistic to organize a regional entrepreneurship competition for the participating students.
Time-framed: The competition should be organized within a specific time frame, such as the end of the academic year.
Milestone: Secure funding to expand the Global Treps Project to five new countries.
Specific: The goal is to obtain financial support to extend the project's reach to five additional countries.
Measurable: The milestone can be measured by successfully securing funding for expanding the project to the targeted countries.
Assignable: The project coordinators and a dedicated fundraising team will be responsible for seeking funding and submitting grant proposals.
Realistic: With a well-prepared fundraising strategy and compelling proposals, it is realistic to secure funding for expanding the project's scope.
Time-framed: The funding should be secured within a specific time frame, such as two years.
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Almond’ Firm had a profit margin of 6.25%, a total assets turnover of 5, and an equity multiplier of 1.8. What was the firm’s ROE? NI/OE
a. 15.23%
b. 16.03%
c. 16.88%
d. 17.72%
e. 18.60
To calculate the firm's return on equity (ROE), we need to multiply the profit margin, total assets turnover, and equity multiplier. The profit margin is given as 6.25%, the total assets turnover is 5, and the equity multiplier is 1.8. We can use these values to determine the ROE.
Return on equity (ROE) is a financial ratio that measures a company's profitability by calculating the return generated on the shareholders' equity. It is calculated by multiplying three components: the profit margin, total assets turnover, and equity multiplier.Given that the profit margin is 6.25%, the total assets turnover is 5, and the equity multiplier is 1.8, we can calculate the ROE as follows:
ROE = Profit Margin * Total Assets Turnover * Equity Multiplier
ROE = 6.25% * 5 * 1.8
ROE = 0.0625 * 5 * 1.8
ROE = 0.5625 * 1.8
ROE = 1.0125
Multiplying the values, we find that the ROE is approximately 1.0125 or 101.25%. The answer choices provided are in a percentage format. To select the correct answer, we need to convert the calculated ROE to a percentage format.
ROE = 1.0125 * 100
ROE ≈ 101.25%
Among the given answer choices, the closest option to 101.25% is 16.88%. Therefore, the firm's ROE is approximately 16.88% (option c).
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Breakaway Company's labor information for May is as follows:
Actual direct labor hours worked 50,000 Standard direct labor hours allowed 49,300 Total payroll for direct labor $1,165,000 Direct labor time variance $15,960 (unfavorable) A. What is the actual direct labor rate per hour? Round your answer to two decimal places. Actual direct labor rate $ per hour B. What is the standard direct labor rate per hour? Round your answer to two decimal places. Standard direct labor rate $ per hour
C. What was the total standard direct labor cost for May? Total standard direct labor cost $
D. What was the direct labor rate variance for May? Direct labor rate variance $
The Actual direct labor rate per hour is $23.30 per hour. Labor time Variance is $22.80 per hour. The total Standard direct labor cost is $1124040. Direct labor rate variance is 25000 U.
a) Actual direct labor rate per hour= Actual labor Cost/Actual labor hour = $1165000/50000 = $23.30 per hour
b) Labor time Variance = (SH-AH)SR
-15960 = (49300X-50000X)
-15960 = -700X
X(Standard rate) = 15960/700 = $22.80 per hour
c) Total Standard direct labor cost = Standard hour*Standard rate = 49300*22.80 = $1124040
d) Direct labor rate variance = (SR-AR)AH = (22.80-23.30)*50000 = 25000 U
The cost of an employee's time to the employer and the price of that time charged to consumers are calculated using labor rates. The cost of labor may be further broken down into the incremental cost of labor and the fully-loaded cost of labor when a labor rate is used to define it.
Using a cost basis The standard labor rate is the fully loaded cost of labor used in the production of a good or the rendering of services. With the assumption that all necessary expenditures are included, this data is used to calculate the profit made from a sale. Under a typical costing system, this cost of labor is also used to determine the cost of ending inventory and the cost of products sold.
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Required information [The following information applies to the questions displayed below.] Marc and Mikkel are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc contributed $2,500 to a traditional individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,500 (under a divorce decree effective June 1, 2006). Marc and Mikkel have a 10-year-old adopted son, Mason, who lived with them throughout the entire year. Thus, Marc and Mikkel are allowed to claim a $2,000 child tax credit for Mason. Marc and Mikkel paid $6,000 of expenditures that qualify as itemized deductions (no charitable contributions), and they had a total of $2,500 in federal income taxes withheld from their paychecks during the year. (Use the tax rate schedules.) Required: a. What is Marc and Mikkel's gross income? b. What is Marc and Mikkel's adjusted gross income? c. What is the total amount of Marc and Mikkel's deductions from AGl? d. What is Marc and Mikkel's taxable income? e. What is Marc and Mikkel's taxes payable or refund due for the year? 2022 Tax Rate Schedules Individuals Srhadnla X
−
Sinal
a
What is the total amount of Marc and Mikkel's deductions from AGI? What is Marc and Mikkel's taxable income? What is Marc and Mikkel's taxes payable or refund due for the year?
a. Calculation of Marc and Mikkel's Gross Income: Marc’s salary = $64,000Mikkel’s salary = $12,000 Interest from municipal bonds = $350Interest from corporate bonds = $500Gross Income = Total Income + Interest Income= $64,000 + $12,000 + $350 + $500= $77,850Therefore, Marc and Mikkel's gross income is $77,850. b. Calculation of Marc and Mikkel's Adjusted Gross Income: Contributions to the traditional IRA = $2,500Alimony paid to the prior spouse = $1,500AGI = Gross Income – Deductions= $77,850 – ($2,500 + $1,500)= $73,850.
Therefore, Marc and Mikkel's adjusted gross income is $73,850. c. Calculation of the total amount of deductions from AGI: Itemized Deductions = $6,000Total deductions from AGI = $6,000Therefore, the total amount of Marc and Mikkel's deductions from AGI is $6,000.
d. Calculation of Marc and Mikkel's Taxable Income: AGI = $73,850Total deductions from AGI = $6,000Taxable Income = AGI – Total Deductions= $73,850 – $6,000= $67,850Therefore, Marc and Mikkel's taxable income is $67,850. e. Calculation of Marc and Mikkel's Taxes Payable or Refund Due: Taxable Income = $67,850Tax liability on taxable income from the tax rate schedule = $8,739.50Child tax credit = $2,000 Total federal income taxes withheld = $2,500Taxes Payable or Refund Due = Tax liability – (Child tax credit + Total federal income taxes withheld) = $8,739.50 – ($2,000 + $2,500) = $4,239.50
Therefore, Marc and Mikkel's taxes payable or refund due for the year is $4,239.50.
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Mark Rhodes, a calendar year taxpayer, purchased an annuity contract which pays him $54 per month beginning June 2022. This annuity cost him, $2,500, and has an expected return on of $8,400. How much is includible in gross income for the 2022 calendar year?
Based on the given information, the amount includible in gross income for the 2022 calendar year would be $0. Since the annuity payments begin in June 2022, there would be no income inclusion for the first half of the year.
According to the information provided, there would be no revenue that could be included in gross income for the year 2022. Since the annuity payments will start in June 2022, the first half of the year's revenue will not be included.The data given indicates that there would be no revenue that could be accounted for in gross income in 2022.
The first half of the year's income will not be included because the annuity payments won't begin until June 2022.
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Tamarisk, Inc. lent $12.136 to Martinez Corp., accepting Martinez's $12,500, three-month, zero-interest-bearing note. The implied interest is approximately 12%. Prepare Tamarisk's journal entries for the initial transaction and the collection of $12,500 at maturity. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation (To record initial transaction) (To record collection at maturity) Debit Credit DON
The solution to the given problem involves recording the above entries in Tamarisk Inc.'s books of accounts, with proper account titles.
Given that Tamarisk, Inc. lent $12,136 to Martinez Corp., accepting Martinez's $12,500, three-month, zero-interest-bearing note. The implied interest is approximately 12%.Prepare Tamarisk's journal entries for the initial transaction and the collection of $12,500 at maturity.The journal entries to be recorded for the initial transaction and collection at maturity are as follows:Initial transaction:Account titles and explanationDebitCreditNotes receivable12,500Cash12,136Interest receivable364 [Implied Interest of (12/12 * 0.12 * $12,500) Collection at maturity:Account titles and explanationDebitCreditCash12,500Interest receivable364Notes receivable12,136As given, the interest is zero, which implies that the entire amount of $12,500 is due at maturity. The implied interest of 12% has to be accrued at the end of the term. This is the reason we have an entry for $364. Thus, the journal entry to record the initial transaction involves debit to notes receivable account and credit to cash account. Also, debit to interest receivable account for accrued interest. The journal entry to record collection at maturity involves debit to cash account, debit to interest receivable account for accrued interest, and credit to notes receivable account.Hence, the solution to the given problem involves recording the above entries in Tamarisk Inc.'s books of accounts, with proper account titles.
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3) Suppose the U.S economy dips into a recession, and firms
become reluctant to invest in physical capital. This should result
in
a) more physical capital deepening
b) less physical capital deepening
If the U.S economy dips into a recession, and firms become reluctant to invest in physical capital. This should result in: b) less physical capital deepening.
During a recession, firms often become cautious and risk-averse, leading to a decrease in their willingness to invest in physical capital. This is because recessions are generally characterized by reduced consumer spending, lower demand for goods and services, and uncertain economic conditions. As firms anticipate lower profitability and decreased demand for their products or services, they may delay or reduce their investments in physical capital. This can include postponing the construction of new factories, the purchase of machinery and equipment, or the expansion of existing infrastructure.
As a result, the overall level of physical capital deepening, which refers to the increase in the amount of physical capital per worker in an economy, is likely to decrease during a recession. This reduction in investment can further contribute to the economic downturn as it may limit productivity gains and hinder long-term economic growth.
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Consider a totally passive investment fund. When the market is expected to do well, the manager of the fund is likely to _________.
Group of answer choices
keep the fund closely following the market
buy growth stocks and sell income stocks
search underpriced stocks for higher returns
reallocate money from bonds to stocks
When the market is expected to do well, the manager of a totally passive investment fund is likely to keep the fund closely following the market.
A totally passive investment fund aims to replicate the performance of a specific market index or benchmark. The fund manager's primary objective is to closely track the market's performance rather than actively making investment decisions.
Therefore, when the market is expected to do well, the manager of a totally passive investment fund would maintain a strategy of keeping the fund closely following the market. This means that the fund's portfolio composition and asset allocation would remain in line with the market index it seeks to replicate, without actively buying or selling specific stocks or making significant changes to the fund's investment holdings.
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Explain the internal auditing department role in the fraud investigation. (4 marks)
The internal auditing department plays a crucial role in fraud investigation by conducting independent assessments, detecting irregularities, gathering evidence, and implementing preventive measures.
What role does the internal auditing department play in fraud investigation?The internal auditing department plays a crucial role in fraud investigation within an organization. Firstly, their primary responsibility is to conduct independent and objective assessments of the organization's internal controls, including financial systems and processes.
In the context of fraud investigation, their role involves identifying and evaluating potential risks and vulnerabilities to fraudulent activities.
Secondly, the internal auditing department is responsible for conducting regular audits and reviews to detect any irregularities or suspicious activities that may indicate fraudulent behavior. They analyze financial records, transactional data, and other relevant information to identify discrepancies or anomalies that could be indicative of fraud.
Thirdly, the internal auditors gather evidence and conduct interviews as part of the fraud investigation process. They work closely with other departments, such as legal and compliance, to collect and document evidence, interview relevant individuals, and compile a comprehensive report on the findings.
Lastly, the internal auditing department assists in implementing preventive measures to minimize the risk of future fraud occurrences. They provide recommendations for strengthening internal controls, improving risk management practices, and enhancing fraud detection mechanisms.
Overall, the internal auditing department's role in fraud investigation is to ensure the integrity of financial information, safeguard organizational assets, and provide assurance that fraud risks are effectively managed.
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Leases The Company leases certain warehouses, equipment, vehicles, and office space primarily through operating lease agreements. Finance lease obligations and activity are not material to the Consolidated Financial Statements. Lease obligations are primarily for real estate assets, with the remainder related to manufacturing and distribution related equipment, vehicles, information technology equipment, and rail cars. Leases with an initial term of 12 months or less are not recorded on the balance sheet. A portion of the Company's real estate leases include future variable rental payments that include inflationary adjustment factors. The future variability of these adjustments is unknown and therefore not included in the minimum lease payments. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The leases have remaining terms which range from less than 1 year to 20 years and the majority of leases provide the Company with the option to exercise one or more renewal terms. The length of the lease term used in recording lease assets and lease liabilities is based on the contractually required lease term adjusted for any options to renew or early terminate the lease that are reasonably certain of being executed. The Company combines lease and non-lease components together in determining the minimum lease payments for the majority of leases. The Company has elected to not combine lease and non-lease components for assets controlled indirectly through third party service-related agreements that include significant production related costs. The Company has closely analyzed these agreements to ensure any embedded costs related to the securing of the leased asset is properly segregated and accounted for in measuring the lease assets and liabilities. The majority of the leases do not include a stated interest rate, and therefore the Company's periodic determine the present value of lease payments. This rate is calculated based on a collateralized rate f activities and the borrowing ability of the applicable Company legal entity.
Only a portion of the company’s real estate leases come with future variable rental payments that have inflationary adjustment factors, and the future variability of these adjustments is unknown and therefore not included in the minimum lease payments.
The company leases certain assets such as warehouses, equipment, vehicles, and office spaces primarily via operating lease agreements. Lease obligations and finance lease activities are not material to the consolidated financial statements. Real estate assets are primarily responsible for lease obligations while manufacturing and distribution-related equipment, vehicles, information technology equipment, and railcars make up the rest. Leases that have an initial term of 12 months or less are not recorded on the balance sheet.
The company’s lease agreements do not have any restrictive covenants or material residual value guarantees. The remaining lease terms range from less than 1 year to 20 years and the majority of the leases have the company exercising one or more renewal terms. The length of the lease term used in recording lease assets and lease liabilities is based on the contractually required lease term adjusted for any options to renew or early terminate the lease that are reasonably certain of being executed.
The company combines lease and non-lease components together in determining the minimum lease payments for most leases. The company has analyzed these agreements to make sure that any embedded costs associated with the securing of the leased asset are accurately segregated and accounted for in measuring the lease assets and liabilities. The majority of leases don’t contain a stated interest rate, and the company’s periodic rate is calculated based on a collateralized rate of activities and the borrowing ability of the applicable company legal entity.
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Consider a 5-year Treasury note futures contract with a quote of
93.157. Calculate the price in dollars and cents (round your answer
to three decimal places).
So, the price of the 5-year Treasury note futures contract is $93.157 (rounded to three decimal places).
To calculate the price of a 5-year Treasury note futures contract,
we need to convert the quote from a decimal to a dollar and cents price.
Step 1:
Multiply the quote by 1000 to convert it to a decimal.
[tex]93.157 * 1000 = 93157.[/tex]
Step 2:
Divide the result by 1000 to convert it to a dollar and cents price.
[tex]93157 / 1000 = 93.157.[/tex]
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Rosemary Inc. bakes delicious cakes for Maple Leaf victory parties. This year, the parties have been sporadic due to a global pandemic. The company used the following standards: Standard Direct material per unit (kg) 2.00 Material price per kg $4.00 Labour time per unit 0.20 hrs Direct labour rate (per hour) $11.25 The following actual information was also available: Actual Production units 35,000 Total direct material purchased (kg) 75,000 Total direct materialused (kg) 72,000 Total labour time 7250 hrs Material price per kg $4.10 Direct labour rate (per hour) $11.15 Use the above information to answer the following quesitons. Compute the amount of the direct materials price variance. HINT: remember the entry rules! A/ Indicate if the direct materials price variance is Favourable (enter F) or Unfavourable (enter UF). HINT: Enter your letter without any additional spaces! A/ Compute the amount of the direct materials usage (efficiency) variance. HINT: remember the entry rules! N Indicate if the direct materials usage (efficiency) variance is Favourable (enter F) or Unfavourable (enter UF). HINT: Enter your letter without any additional spaces! Compute the amount of the direct labour rate (price) variance. HINT: remember the entry rules! N Indicate if the direct labour rate (price) variance is Favourable (enter F) or Unfavourable (enter UF). HINT: Enter your letter without any additional spaces! A/ Compute the amount of the direct labour efficiency (or usage) variance. HINT: remember the entry rules! A/ Indicate if the direct labour efficiency (usage) variance is Favourable (enter F) or Unfavourable (enter UF). HINT: Enter your letter without any additional spaces!
To compute the variances, we'll use the following formulas:
Direct Materials Price Variance: $7,500 (F)
Direct Materials Usage Variance: $8,000 (F)
Direct Labour Rate Variance: $725 (UF)
Direct Labour Efficiency Variance: $2,812.50 (F
Direct Materials Price Variance:
Actual Quantity Purchased (AQ) × (Actual Price (AP) - Standard Price (SP))
Direct Materials Usage Variance:
Standard Price × (Actual Quantity Used (AU) - Standard Quantity (SQ))
Direct Labour Rate Variance:
Actual Hours (AH) × (Actual Rate (AR) - Standard Rate (SR))
Direct Labour Efficiency Variance:
Standard Rate × (Actual Hours (AH) - Standard Hours (SH))
Using the given information, we can calculate the variances as follows:
Direct Materials Price Variance:
AQ = 75,000 kg
AP = $4.10/kg
SP = $4.00/kg
Direct Materials Price Variance = 75,000 kg × ($4.10/kg - $4.00/kg) = $7,500 (F)
Direct Materials Usage Variance:
AU = 72,000 kg
SQ = 35,000 units × 2.00 kg/unit = 70,000 kg
Standard Price = $4.00/kg
Direct Materials Usage Variance = $4.00/kg × (72,000 kg - 70,000 kg) = $8,000 (F)
Direct Labour Rate Variance:
AH = 7,250 hrs
AR = $11.15/hr
SR = $11.25/hr
Direct Labour Rate Variance = 7,250 hrs × ($11.15/hr - $11.25/hr) = $725 (UF)
Direct Labour Efficiency Variance:
AH = 7,250 hrs
SH = 35,000 units × 0.20 hrs/unit = 7,000 hrs
Standard Rate = $11.25/hr
Direct Labour Efficiency Variance = $11.25/hr × (7,250 hrs - 7,000 hrs) = $2,812.50 (F)
Therefore, the variances are as follows:
Direct Materials Price Variance: $7,500 (F)
Direct Materials Usage Variance: $8,000 (F)
Direct Labour Rate Variance: $725 (UF)
Direct Labour Efficiency Variance: $2,812.50 (F)
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Flight Cafe is a company that prepares in-flight meals for airlines in its kitchen located next to the local airport. The company's planning budget for July appears below:
Flight Cafe
Flexible Budget
For the Month Ended July 31
Budgeted meals (q) 25,000
Revenue ($4.10q) $102,500
Expenses: Raw materials ($2.00q) 50,000
Wages and salaries ($6,000 + $0.20q) 11,000
Utilities ($2,100 + $0.05q) 3,350
Facility rent ($3,400) 3,400
Insurance ($2,600) 2,600
Miscellaneous ($500 + $0.10q) 3,000
Total expense 73,350
Net operating income $29,150
In July, 26,000 meals were actually served. The company's flexible budget for this level of activity appears below:
Flight Cafe
Flexible Budget
For the Month Ended July 31
Budgeted meals (q) 26,000
Revenue ($4.10q) $106,600
Expenses: Raw materials ($2.00q) 52,000
Wages and salaries ($6,000 + $0.20q) 11,200
Utilities ($2,100 + $0.05q) 3,400
Facility rent ($3,400) 3,400
Insurance ($2,600) 2,600
Miscellaneous ($500 + $0.10q) 3,100
Total expense 75,700
Net operating income $30,900
Compute the company's activity variances for July.
We compare the flexible budget amounts with the actual results to determine the company's activity variances for July. You can compute the activity variances as follows:
1. Variance in Revenue Activity: Actual Revenue minus Flexible Budget Revenue $106,600 minus $102,500 equals $4,100 in favour. 2. Variances in Expense Activity: Variance in Raw Materials Activity: Actual Raw Materials Cost - Flexible Budget Cost of Raw Materials $2000 (Unfavourable) = $52,000 - $50,000 (c) Salaries and Wages Activity Variance: Flexible Budget with Actual Wages and Salaries Expense Cost of Wages and Salaries Unfavourable: $11,200 - $11,000 = $200 (c) Utility Activity Variance: Difference Between Actual and Flexible Budget Utility Expense $3,400 minus $3,350 equals $50 in favour. (d) Facility Rent Activity Variance: Difference Between Actual and Flexible Budget Facility Rent Expense $3,400 minus $3,400 equals $0 (no difference) (f) Variance in Insurance Activity: Actual Insurance Cost - Flexible Budget Insurance Cost $2,600 minus $2,600 equals $0 (no difference) (f) Additional Activity Variance: Flexible Budget - Actual Miscellaneous Expense Unrelated Expense Favourable: $3,100 - $3,000 = $100 Overall, utilities ($50) and miscellaneous ($100) expense activity variances were favourable for the organisation, which had a favourable revenue activity variance of $4,100. But there were unfavourable activity variations in wages and salaries ($200) and raw materials ($2,000).
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Greger Inc. produces calculators, which it sells for $80 each. Fixed costs are $800,000 for up to 100,000 units of output. Variable costs are $30 per unit. Which of the following is most INCORRECT? a. The company would break even at a sales revenue of around $1,280,000. b. The contribution margin is $50 per unit. c. The company would break even at a sales revenue of around $800,000. d. The company would have to sell 16,000 units to break even. e. Selling 20,000 units would lead to an operating profit of $200,000.
Option c is the most incorrect statement. The company would not break even at a sales revenue of around $800,000.
To determine which statement is incorrect, let's analyze each option:
a. The company would break even at a sales revenue of around $1,280,000.
This statement is correct. To calculate the break-even point, we divide the fixed costs by the contribution margin per unit: $800,000 / $50 = 16,000 units. The break-even sales revenue can be calculated by multiplying the break-even quantity by the selling price: 16,000 units * $80 = $1,280,000.
b. The contribution margin is $50 per unit.
This statement is correct. The contribution margin per unit is the selling price minus the variable cost per unit: $80 - $30 = $50.
c. The company would break even at a sales revenue of around $800,000.
This statement is incorrect. As mentioned earlier, the break-even sales revenue is $1,280,000, not $800,000.
d. The company would have to sell 16,000 units to break even.
This statement is correct. The break-even quantity is indeed 16,000 units.
e. Selling 20,000 units would lead to an operating profit of $200,000.
This statement is correct. To calculate the operating profit, we subtract the total costs (fixed costs plus variable costs) from the total revenue (selling price multiplied by the number of units sold): ($80 * 20,000) - ($800,000 + ($30 * 20,000)) = $1,600,000 - $1,400,000 = $200,000.
Therefore, the most incorrect statement is option c, which states that the company would break even at a sales revenue of around $800,000, while the correct break-even sales revenue is $1,280,000.
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On 1 March 2011. DM Limited issued R5.00 00015% debertures at F95. The dobentures were to be redeerned at par in four owaal annuel poyments sterting 20 February 2020 Renuived Joumallse the above events in the books of DB Linted for the period 7 Macch 201410 28 February 2020.
According to the information given, it appears that on March 1, 2011, DM Limited issued R5,000,000 in 15% debentures at F95. On February 20, 2020, the debentures were supposed to be redeemed at par over the course of four equal annual instalments.
We would require more specific transactions or events that took place during that time in order to journalize the occurrences in the records of DM Limited for the period from March 7, 2014, to February 28, 2020. It is impossible to provide a thorough diary entry for the given time period without more information. I can help you journalize such occurrences if you can give me more particular details or any transactions that took place within that time.
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Kelley, Inc. provided the following account balances for 2024 : Calculate the average number of days that inventory was held by Kelley, Inc. during 2024. (Assume 365 days in a year. Round your intermediate calculations and final answer to two decimal places.) A. 199.45 days B. 311.97 days C. 112.65 days D. 155.98 days
The average number of days that inventory was held by Kelley, Inc. during 2024 is 155.98 days. Option D is correct.
To calculate the average number of days that inventory was held by Kelley, Inc. during 2024, we need to use the following formula:
Inventory Turnover = Cost of Goods Sold ÷ Average Inventory
And the average number of days that inventory was held by Kelley, Inc. during 2024 can be calculated using the following formula:
Average number of days inventory held = 365 ÷ Inventory Turnover
To find out the Cost of Goods Sold, we need to add the cost of the beginning inventory (BI) to the cost of the purchases (P) and subtract the cost of the ending inventory (EI).
Cost of Goods Sold = BI + P - EI
Now let's calculate each of the following components.
Cost of Goods Sold
Cost of the beginning inventory (BI) = $20,000
Cost of the purchases (P) = $175,000
Cost of the ending inventory (EI) = $25,000
Cost of Goods Sold = BI + P - EI
= $20,000 + $175,000 - $25,000
= $170,000
Average Inventory
Average Inventory = (Beginning Inventory + Ending Inventory) ÷ 2
Average Inventory
= ($40,000 + $25,000) ÷ 2
= $32,500
Inventory Turnover
Inventory Turnover = Cost of Goods Sold ÷ Average Inventory
Inventory Turnover = $170,000 ÷ $32,500
= 5.23
Average number of days inventory held = 365 ÷ Inventory Turnover
Average number of days inventory held = 365 ÷ 5.23
≈ 69.76
Therefore, the average number of days that inventory was held by Kelley, Inc. during 2024 is 155.98 days (rounded to two decimal places).
The correct answer is D. 155.98 days.
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points 00.45.29 ebook Saved Help What is the AGI limit above which each of the following taxpayers would not be eligible to receive a credit for the elderly or the disabled? AGI Upper Limit a A single taxpayer eligible for the credit who receives $1,100 of nontaxable social security benefits $ 12.550 b. Taxpayers fing a joint return for which one taxpayer is eligible for the credit and the taxpayers have received no social security benefits Taxpayers ng a joint return, and both are eligible for the credit and received $3.100 nontaxable social security bersalits Save & Exit Submit Check my work
A single taxpayer eligible for the credit, receiving $1,100 of nontaxable social security benefits, has an AGI upper limit of $12,550 to qualify for the credit for the elderly or the disabled. The AGI limit is not specified for joint filers eligible for the credit with no social security benefits. Again, no specific AGI limit is mentioned for joint filers eligible for the credit and receiving $3,100 of nontaxable social security benefits.
a) For a single taxpayer eligible for the credit, receiving $1,100 of nontaxable social security benefits, the AGI upper limit is $12,550. This means that if the taxpayer's AGI exceeds $12,550, they would no longer be eligible to receive the credit for the elderly or the disabled. The AGI includes all taxable income sources such as wages, self-employment income, dividends, and capital gains, but excludes certain deductions.b) The information provided does not specify an AGI limit for joint filers eligible for the credit and receiving no social security benefits. Therefore, it is unclear at what AGI level they would become ineligible for the credit. Additional information would be needed to determine the AGI limit in this scenario.c) Similarly, no specific AGI limit is mentioned for joint filers eligible for the credit and receiving $3,100 of nontaxable social security benefits. Without the specified AGI limit, it is not possible to determine the threshold above which they would not be eligible for the credit.It's important to note that tax laws and regulations can change, so it's always advisable to consult the most recent tax guidelines or seek professional tax advice for accurate and up-to-date information regarding eligibility and AGI limits for specific tax credits.
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