Answer: b. $8,518.9 billion.
Explanation:
Nominal GDP is calculated with current prices which means that the effects of inflation are present.
Real GDP removes this effect by basing the GDP calculation on the prices of a previous period:
Real GDP = Nominal GDP * 100/ Price level
= 8,800 * 100/ 103.3
= $8,518.877
= $8,518.9 billion
Worldwide Manufacturing produces a unique valve and has the capacity to produce 50,000 valves annually. Currently Worldwide produces 40,000 valves and is thinking about increasing production to 45,000 valves next year. What is the most likely behavior of total manufacturing costs and unit manufacturing costs, given this change
Answer:
c) Total manufacturing costs will increase and unit manufacturing costs will also decrease.
Explanation:
Based on the information given the most likely behavior of total manufacturing costs and unit manufacturing costs, given this change is that TOTAL MANUFACTURING COSTS WILL INCREASE AND UNIT MANUFACTURING COSTS WILL DECREASE since Manufacturing cost consists of DIRECT MATERIALS, DIRECT LABOR, VARIABLE MANUFACTURING OVERHEAD and FIXED MANUFACTURING OVERHEAD in which direct materials, direct labor and variable manufacturing overhead are Variable expense which means that if the production increases from $40,000 to $45,000 the total manufacturing cost will as well INCREASE but due to the FIXED MANUFACTURING COST involved , the unit manufacturing cost will have to decrease.
When should a company consider issuing debt instead of equity?
Answer:
Many fast-growing companies would prefer to use debt to support their growth, rather than equity, because it is, arguably, a less expensive form of financing (i.e., the rate of growth of the business's equity value is greater than the debt's borrowing cost).
Explanation:
Answer:
There could be many reasons, but probably the company reached its debt ceiling and is not able to borrow anymore (at acceptable conditions), due to low net cash flow relative to debt service, or low available collateral, or both.
Larger expansions or risky undertakings would also be more likely financed by equity - the expansion might require taking on more debt than the company is currently able to service, and the creditors are not sure if it will also bring sufficient additional EBITDA to service large debt. Similar thing with risky business proposals - it is more logical to finance them through equity, where investors share the hard-to-predict benefits as well as potential losses. If they were to be financed by debt, the loan should in theory carry very high interest to make up for the risk profile of the endeavor. Better to make it an equity investment.
Also, issuing equity improves your balance sheet and enables you to take on more debt. Having more equity could also mean cheaper debt (better interest rates). Debt is considered “senior” to equity, in theory losses should hit investors first and creditors later, so having a larger equity cushion means lower credit risk.
If the company suffered some hard times, they are already starved for cash and on top of that creditors would likely want to reduce their exposure - a perfect storm that could put the company out of business due to lack of liquidity, even when the business model is good in the long term (but who has a crystal ball, eh?). Raising more equity may be their only option.
Marigold Corp. reported a net loss of $12300 for the year ended December 31, 2017. During the year, accounts receivable decreased $6150, inventory increased $9840, accounts payable increased by $12300, and depreciation expense of $7380 was recorded. During 2017, operating activities ________.
Answer:
See below
Explanation:
Computation of operating activities
Net loss
($12,300)
Add:
Depreciation expense
$7,380
Accounts payable increase
$12,300
Accounts receivable decreased
$6,150
Less:
Inventory increased
($9,840)
Operating activities
$3,690
Therefore, during 2017 operating activities used net cash of $3,690
Suppose the standard deviation for the Martin Products Distribution is 4.0. If an investor is hoping for a return of at least 13%, the chances that investing in Martin Products will return at least 13%
a. are much less than in investing in U.S.
b. are the same as investing in U.S.
c. are greater than in investing in U.S.
d. cannot be determined
Answer: C. are greater than in investing in U.S.
Explanation:
Based on more information that was gotten online regarding the question, the distribution of Martin product is more than that of the US Water.
Therefore, in a case whereby an investor is hoping for a return of at least 13%, the chances that investing in Martin Products will return at least 13% will then be greater than in investing in U.S.
If the government intervenes and corrects the externality in the situation described, we would expect Group of answer choices the demand for the output from the hydroelectric power plants to decrease. the demand for the output from the hydroelectric power plants to increase the supply of the output from the hydroelectric power plants to decrease the supply of the output from the hydroelectric power plants to increase.
Answer: the supply of the output from the hydroelectric power plants to increase.
Explanation:
The hydroelectric power operators are incurring the cost of cleaning the river before they can use it. This cost is money that they could be investing in the business in order to produce more power.
If the government corrects the externality and limits the amount of waste being thrown into the river, the hydroelectric company would be able to invest the expenses it was incurring in clean up into generating more power which would lead to a higher supply of output from the power station.
If a property will produce net cash flow that grows at a rate of 1.5% per year in perpetuity, and the opportunity cost of capital is 12%, then what is the "cap rate" (net cash flow / property value) for the property?
(a) 8%.
(b) 10%.
(c) 10.5%.
(d) 12%.
Answer:
(c) 10.5%.
Explanation:
Calculation to determine what is the "cap rate
Using this formula
x 1/r-g
Let plug in the formula
1/12-1.5
Error costs are costs associated with ______________ by the cost management system and measurement costs are the costs associated with making poor decisions.
The company's bank reconciliation at June 30 included interest earned in the amount of $150. Complete the necessary journal entry by selecting the account names and dollar amounts from the drop-down menus.
Answer:
Dr Cash $150
Cr Interest Revenue $150
Explanation:
Based on the information given ifnThe bank statement included a CREDIT MEMORANDUM in the amount of $150 for interest which means that the journal entry will be :
Dr Cash $150
Cr Interest Revenue $150
Calculate the annual coupon payment if the semi-annual coupon paying bond price is $920, the yield for the bond is 6%, the bond's face value is $1,000 and matures in 9 years.
The annual coupon payment is $48.40.
Annual coupon paymentYield = 6%
Rate = Yield/2 = 6%/2 = 3%
YTM = 9
Nper = YTM×2 = 9×2 = 18
Face value = $1,000
Price(PV) = $920
Monthly payment = PMT(0.03, 18, -920, 1000)
Monthly payment = $24.1833
Coupon rate = (PMT/Face value) ×2
Coupon rate = (24.1833/1000) × 2
Coupon rate = 0.0241833 × 2
Coupon rate = 0.0483666×100
Coupon rate = 4.84%
Annual coupon payment = Face value ×Coupon rate
Annual coupon payment = $1000 ×4.84%
Annual coupon payment = $48.40
Inconclusion the annual coupon payment is $48.40.
Learn more about annual coupon payment here:https://brainly.com/question/25596583
Which of the following does not dilute the value of collecting opinions from a number of people (e.g., regarding a performance evaluation or hiring decision)?
A. They have discussed the matter with each other.
B. They evaluated the same materials.
C. They have discussed the matter with the same people.
D. They have similar backgrounds.
Answer:
The correct answer is A:
They have discussed the matter with each other.
Explanation:
The objective of collecting opinions from a number of people with regard to a particular subject such as performance evaluation or a hiring decision is to ensure that via the consideration of heterogeneous perspectives, the best decision is arrived at.
The very nature of collecting opinions from people who are most likely to view the subject from different unique perspectives requires that the subject be discussed. Hence, Option A cannot be a diluting factor.
Cheers
E-commerce activities that take place within an organization's data communication network are part of _____.
Answer:
intrabusiness
Explanation:
Intra-business e-commerce can be regarded as type of e-commerce whereby involved parties that are taking part in the electronic exchanges comes from within a particular firm or business. In a case, whereby e-commerce exchange does not have inclusion of numerous organizations then it can be regarded as Intra-business e-commerce. It is a developing field that It is a business plan that encourages data gathering as well as exchange within an organization, so that quick review of complaints as regards common people can be simply possible.
It should be noted E-commerce activities that take place within an organization's data communication network are part of intrabusiness.
The sources of economic growth are _______. A. work hours growth and labor productivity growth B. democracy and labor productivity growth C. job experience and low inflation D. work hours growth and a stable government
Answer:
A. work hours growth and labor productivity growth
Explanation:
An economy is a function of how money, means of production and resources (raw materials) are carefully used to facilitate the demands and supply of goods and services to meet the unending needs or requirements of the consumers.
Hence, a region's or country's economy is largely dependent on how resources are being allocated and utilized, how many goods and services are to be produced, what should be produced, for whom they are to be produced for and how much money are to be spent by the consumers to acquire these goods and services.
Basically, there are four (4) main types of economy and these are;
I. Mixed economy.
II. Free market economy.
III. Traditional economy.
IV. Command economy.
Generally, the sources of economic growth of a country are work hours growth and labor productivity growth.
Labor (working) is simply the human capital or workers who are saddled with the responsibility of overseeing and managing all the aspects of production.
An educational institution has total direct labor and material costs of $1964 per student. Its fixed costs are $352,800. Total revenues for the year were $1,800,000. It had 800 students in the past year. How many students should they accept in the next year to break even assuming the variable cost margins are equal to this year, and assuming fixed costs are to increase by $19,000 due to increased rent for expansion? (round to the nearest whole number).
Answer:
1300 students
Explanation:
The computation of the no of students to be accepted for break even is given below:
Fixed cost is
= $352,800 + $19,000
= $371,800
Revenue per student is
= $1,800,000 ÷ 800
= 2250
And,
Variable cost per student = 1964
So,
Contribution margin = Revenue - Variable cost
= $2,250 - $1,964
= $286
Break even point is
= Fixed cost ÷ Contribution margin per unit
= 371800÷ 286
= 1300 students
The financial statement that provides a snapshot view of the financial condition of a business at a point in time is the:
Answer:
balance sheet
Explanation:
Balance sheet can be regarded as financial statement which gives reports of the liabilities, equity of shareholders as well as assets of the company at a specific point in time, It provides a basis that can be used in computing rates of return as well as evaluating its capital structure.
It should be noted that balance sheet is
financial statement that provides a snapshot view of the financial condition of a business at a point in time
Kandy Kane Corporation has income before taxes of $400,000 and a loss from discontinued operations pretax of $100,000. If the income tax rate is 25% on all items, the income statement should show income tax expense of
Answer:
The income tax expense = $100000
Explanation:
Below is the given values:
Income before the taxes = $400000
Loss discontinued = $100000
Income tax rate = 25%
In order to calculate the income tax expense, just find the 25% of the income before tax and the resulting answer will be the income tax expense.
The income tax expense = 25% x 400000
The income tax expense = $100000
Your parent offer you the opportunity to invest $ 50,000 in new coffee shop on the existing building on their property. It is located in the city centre. This building has 200m2 of space. Assumed that the project lasts 9 years, opportunity cost of capital is 10%, corporate income tax is ignored.
a. You should make some assumptions and forecast intial investment (cost of reparing old building and purchase of fix assets); operation cash flow (\, price per cup of coffee, number of cups of coffee per year; cost, depreciation, profit and cash flow from operation); and cash flow from changes in working capital.
b. What is NPV of this project? Do you invest this project? Why?
Answer:
no I don't invest this project
Seating Galore sells high-end desk chairs. The variable expense per chair is $85.05 and the chairs sell for $189.00 each. The variable expense ratio for Seating Galore's chairs is
Answer:
Variable expense ratio= 0.45
Explanation:
Giving the following information:
The variable expense per chair is $85.05 and the chairs sell for $189.00 each.
To calculate the variable expense ratio, we need to use the following formula:
Variable expense ratio= variable cost per unit / selling price
Variable expense ratio= 85.05 / 189
Variable expense ratio= 0.45
Bonita Industries purchased machinery for $1030000 on January 1, 2017. Straight-line depreciation has been recorded based on a $82000 salvage value and a 5-year useful life. The machinery was sold on May 1, 2021 at a gain of $27500. How much cash did Bonita receive from the sale of the machinery?
a. $138,000
b. $162,000
c. $198,000
d. $258,000
Answer:
$235,900
Explanation:
Depreciation p.a. = ($1030000 - $82,000) / 5 years
Depreciation p.a. = $189,600
Depreciation charged till the Jan 1 ,2021 (4 years)
= $189,600 * 4 years
= $758,400
Depreciation charged till May 1, 2021 (4 month)
= $189,600 * 4 months/12 months
= $63,200
Value of the asset = $1030000 - $758,400 - $63,200
Value of the asset = $208,400
Cash received from sale of machinery = $208,400 + $27,500 (gain)
Cash received from sale of machinery = $235,900
Colette Value Inc., a game development firm, has received a new project that involves the development of a mobile game. The project must be completed within a year. The company, however, is facing a shortage of mobile game developers and must hire 50 developers to ensure the timely completion of the project. As a result, the firm decides to take part in a job-related event that would give the firm access to a large pool of applicants at the same time. Which of the following recruitment options has Colette Value decided to use to find a large number of suitable candidates in a short time?
a. Alumni networks.
b. Job fairs.
c. Job posting systems.
d. Employee referrals.
Answer:
b. Job fairs.
Explanation:
Job fairs is the quickest method to bring the right talent as at the job fairs the people who wants to look for the job presently and on urgent basis so it will be considered. Also it considered the young and the latest talent plus the right candidates that hired in some days. Due to this, it saves the cost also received the best talent
So as per the given situation, the option b is correct
what is mextura give one example
Answer:
A mixture is a substance made by combining two or more different materials in such a way that no chemical reaction occurs. A mixture can usually be separated back into its original components. Some examples of mixtures are a tossed salad, salt water and a mixed bag of M&M's candy.
Answer:
Mextura is a hybrid font, which combines elements of sansserif and black letter types.
Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 1,600 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $6 per unit of average inventory. Every time an order is placed for more of item X, it costs $12. a. Whenever item X is ordered, what should the order size be
Answer:
80 quantities
Explanation:
to get the order size of the item, we have to use this formula
[tex]optimal quantity = \sqrt{\frac{2DS}{H} }[/tex]
From this formula above,
D = annual demand = 1600
s = set up cost= 12
h = holding cost = 6
[tex]\sqrt{\frac{2*1600*12}{6} }[/tex]
[tex]\sqrt{6400} \\=80[/tex]
from this solution above, the order size should be 80 quantities
thank you
Sweet Treats common stock is currently priced at $17.15 a share. The company just paid $1.22 per share as its annual dividend. The dividends have been increasing by 2.4 percent annually and are expected to continue doing the same. What is this firm's cost of equity
Answer:
9.68 percent
Explanation:
Calculation to determine the firm's cost of equity
Using this formula
Cost of equity=[(Annual dividend×Increase in dividends×/Current price of common stock]+Dividends
Let plug in the formula
Cost of equity=[($1.22 × 1.024)/$17.15] + 0.024
Cost of equity=($1.24928/$17.15)+0.024
Cost of equity=0.0728+0.024
Cost of equity=0.0968*100
Cost of equity=9.68 percent
Therefore the firm's cost of equity is 9.68 percent
Which of the following methods of accounting for investments is appropriate when the investor has significant influence over the investee?
a. cost method.
b. mark to market method.
c. equity method.
d. lower of cost or market method.
Answer:
The answer is "Option c".
Explanation:
The equity method is indeed the conventional technique used whenever an investor, a firm, has a massive effect on some other asset manager.
It is the method used by a company to document its money generated through investment in another company.
The investor should record its profits or losses following its ownership percentage. It regularly changes the value of the property to a balance sheet of even an investor.
Peterson Company billed its customers a total of $840,000 for the month of November. The total includes a 5% state sales tax.
(a) Determine the proper amount of revenue to report for the month.
(b) Prepare the general journal entry to record the revenue and related liabilities for the month.
Answer:
a. $800000
b. Account receivable Dr. 840000
To sales revenue 800000
To sales tax payable 40000
Explanation:
a. Given the total billed amount = $840000
Sales tax = 5%
Total revenue for the month = 840000 x (100 / 105) = $800000
b. Account receivable Dr. 840000
To sales revenue 800000
To sales tax payable 40000
The focus on establishing relationships with all customers has given way to a more targeted effort to seek higher-value customers.
A. True
B. False
On the basis of the following information taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet for the month ended September 30, journalize the closing entries for Perez Roofing Company.
Perez Roofing Company
Adjusted Trial Balance
September 30
Account Title Debit Credit
Cash 22,500
Accounts Receivable 3,575
Office Supplies 2,850
Repair Parts 3,785
Machinery 17,750
Accumulated Depreciation 3,250
Accounts Payable 1,150
Notes Payable 6,500
Common Stock 1,500
Retained Earnings 1,000
Dividends 1,750
Service Revenue 47,200
Wages Expense 4,840
Office Supplies Expense 1,275
Repair Parts Expense 925
Depreciation Expense 1,350
60,600 60,600
Answer:
Perez Roofing Company
Closing Journal Entries:
September 30:
Debit Service Revenue $47,200
Credit Income Summary $47,200
To close service revenue to income summary.
Debit Income Summary $8,390
Credit:
Wages Expense $4,840
Office Supplies Expense $1,275
Repair Parts Expense $925
Depreciation Expense $1,350
To close expenses to income summary.
Debit Income summary $38,810
Credit Retained Earnings $38,810
To close income summary to Retained Earnings.
Debit Retained Earnings $1,750
Credit Dividends $1,750
To close dividends to Retained Earnings.
Explanation:
a) Data and Calculations:
Perez Roofing Company
Adjusted Trial Balance
September 30
Account Title Debit Credit
Cash 22,500
Accounts Receivable 3,575
Office Supplies 2,850
Repair Parts 3,785
Machinery 17,750
Accumulated Depreciation 3,250
Accounts Payable 1,150
Notes Payable 6,500
Common Stock 1,500
Retained Earnings 1,000
Dividends 1,750
Service Revenue 47,200
Wages Expense 4,840
Office Supplies Expense 1,275
Repair Parts Expense 925
Depreciation Expense 1,350
60,600 60,600
Closing Entries:
Service Revenue $47,200
Wages Expense $4,840
Office Supplies Expense $1,275
Repair Parts Expense $925
Depreciation Expense $1,350
Dividends $1,750
Wilson's is reviewing a project with an internal rate of return of 13.09 percent and a beta of 1.42. The market risk premium is 8.1 percent, the tax rate is 35 percent, and the risk-free rate is 2.9 percent. The firm's WACC is 12.68 percent. Will the project be accepted if the WACC is used as the discount rate for the project
Answer:
Yes, The project will be accepted.
Explanation:
Projects should be accepted when their internal rate of return is greater than the Weighted Average Cost of Capital (WACC). The WACC represents the cost or risk of the company so if the return is greater than the risk, then this will be favorable.
Spirit Company's sales budget shows quarterly sales for the next year as follows: Unit sales Quarter 1.......... 10,000 units Quarter 2.......... 8,000 units Quarter 3.......... 12,000 units Quarter 4.......... 14,000 units Company policy is to have a finished goods inventory at the end of each quarter equal to 20% of the next quarter's sales. Budgeted production for the second quarter of the next year would be:
Answer:
8,800 units
Explanation:
Calculation to determine what Budgeted production for the second quarter of the next year would be:
Second Quarter - Sales 8,000
Less: Beginning Finished Goods
(8,000 x 20%) (1,600)
Add: Desired Ending Finished Goods (12,000 x 20% ) 2,400
Budgeted Production 8,800 units
(8,000-1,600+2,400)
Therefore Budgeted production for the second quarter of the next year would be:8,800 units
Bantam company calculated its net income to be $38,775 based on the unadjusted trial balance. The following adjusting entries were then made for:
Salaries and wages owed but not yet paid of $395.
Interest earned but not received from investments of $375.
Prepaid insurance premiums amounting to $275 have expired.
Unearned revenue in the amount of $805 has now been earned.
Required:
Determine the amount of net income (loss) that will be reported after the adjustments are recorded.
Answer:
the amount of net income or loss is $39,285
Explanation:
The computation of the amount of net income or loss is shown below:
= Net income + interest earned + unearned revenue - salaries & wages - prepaid insurance
= $38,775 + $375 + $805 - $395 - $275
= $39,285
hence, the amount of net income or loss is $39,285
The same should be considered and relevant
a. If management reports truthfully, what economic events are likely to prompt the following accounting changes?
• Increase in the estimated life of depreciable assets
• Decrease in the uncollectible allowance as a percentage of gross receivables
• Recognition of revenues at the point of delivery rather than at the point cash is received
• Capitalization of a higher proportion of software R&D costs
b. What features of accounting, if any, would make it costly for dishonest managers to make the same changes without any corresponding economic changes?
Answer:
Increase in the estimated life of depreciable assets
Opinion of third parties
Explanation:
If management reports truthfully, the economic events that are likely to prompt the following accounting changes are an increase in the estimated life of depreciable assets.
The features of accounting, that would make it costly for dishonest managers to make the same changes without any corresponding economic changes is auditing.
Auditiors are the third parties which provide a clean account of the financial statement of the company, therefore if the changes in the accounting policy are consistent with economic changes, the audits will not provide a clean account of the financial statement
