The given question lacks the information necessary to accurately fill in the blanks on Rebecky's balance sheet. However, we can use the given values of free cash flows, NOPAT, and depreciation to calculate other financial ratios that could help fill in the blanks on the balance sheet.
Free cash flow can be calculated: Free cash flows = NOPAT - net investment in operating capital, net investment in operating capital = operating capital at the end of the year - operating capital at the beginning of the year. Operating capital at the end of the year and the beginning of the year can be calculated as: operating capital = operating current assets - operating current liabilities. Substituting operating capital in the net investment in operating capital equation: net investment in operating capital = (operating current assets at the end of the year - operating current liabilities at the end of the year) - (operating current assets at the beginning of the year - operating current liabilities at the beginning of the year).
Now, substituting the given values in the above equation: 41 = 95 - [(operating current assets at the end of the year - operating current liabilities at the end of the year) - (operating current assets at the beginning of the year - operating current liabilities at the beginning of the year)] 41 = 95 - (operating current assets at the end of the year - operating current liabilities at the end of the year) + (operating current assets at the beginning of the year - operating current liabilities at the beginning of the year). Now, we don't know the operating current assets and operating current liabilities for both years, hence we can't accurately calculate the net investment in operating capital. We could use this value to calculate other ratios like ROIC, asset turnover, and other financial ratios. However, since the question asks to fill in the blanks on Rebecky's balance sheet, we cannot provide an accurate answer to that without more information.
To know more about balance sheet: https://brainly.com/question/910379
#SPJ11
part 1. Given the following information: Borrower Fixed rate Floating rate AAA 8.50% p.a. LIBOR BBB 9.20% p.a. LIBOR + 0.50% p.a. The notional principal of the swap agreement is USD 1million. Explain the concept of notional principal. Under the assumption of no intermediation/no intermediation fees and an equal split of savings (if any), determine whether a profitable interest rate swap could be arranged between AAA Limited and BBB Limited. Explain your reasoning. If a profitable swap is possible, construct a swap that would advantage both parties. Indicate which party should borrow at a fixed rate using a bond issue and which party should borrow at a floating rate via a bank loan. Discuss whether the two parties have to share any savings equally and what is the impact of considering the presence of an investment bank intermediating this contract on their costs. Under the assumption that the swap is intermediated by an investment bank that requests a 0.10% fee to each of the two parties, determine if a swap can produce cost savings and, if that is true, redesign the swap with these new data.
part 2. Explain the concept of green bonds and their main features, and provide an example of a green bond. What do we mean by greenwashing? How can this practice be related to ethical or unethical, and in certain cases even criminal, behaviour?
Part 1:Notional principal refers to the amount used to calculate interest rate payments made between the two parties to the interest rate swap agreement.
It does not represent the actual amount of money being exchanged, but it is the amount on which the interest rates are applied. In this particular case, the notional principal is USD 1million.The fixed rate for AAA Limited is 8.50% p.a., while the floating rate for BBB Limited is LIBOR + 0.50% p.a. which is 9.20% p.a.
We can find out the estimated floating rate for BBB Limited as 9.20% p.a. - LIBOR = 9.20% p.a. - 0.50% p.a. = 8.70% p.a. It is observed that AAA Limited is paying a lower rate of interest than the market rate, while BBB Limited is paying a higher rate of interest than the market rate.
Hence, a profitable interest rate swap could be arranged between AAA Limited and BBB Limited. Both parties should benefit from this swap agreement.To take advantage of the swap, AAA Limited should issue a fixed-rate bond at 8.50% p.a., while BBB Limited should take out a bank loan at the floating rate of LIBOR.
Greenwashing can be considered unethical or even criminal if it involves intentional deception or fraud. For example, if a company claims that its product is made from recycled materials when it is not, or if it claims that its product has been certified as environmentally friendly when it has not, this could be considered greenwashing.
Consumers and investors can protect themselves from greenwashing by doing their research and looking for independent verification of environmental claims.
To know more about interest rate , refer to the link:
https://brainly.com/question/28272078#
#SPJ11
The managing director of a consulting group has the accompanying monthly data on total overhead costs and professional labor hours to bill to clients. Complete parts a through c.
a. Develop a simple linear regression model between billable hours and overhead costs.
b. Interpret the coefficients of your regression model.Specifically, what does the fixed component of the model mean to the consulting firm? Interpret the fixed term, b0, if appropriate. Choose the correct answer below.
Interpret the coefficient of billable hours, b1, if appropriate. Choose the correct answer below.
It is not appropriate to interpret by, because its value is the predicted billable hours for overhead costs of 0 dollars, but
c. If a special job was available requiring 5,550 billable hours that would contribute a margin of $210,000 before overhead, would the job be attractive?
a) This model indicates how overhead costs are dependent on the number of billable hours.
b) The coefficient of Billable hours b 1 suggests how overhead costs change with each unit of increase in billable hours.
c) The special job would generate revenue of $210,000 before overheads and cost an overhead of $213,342.30. Hence, the special job would not be attractive.
a) Simple Linear Regression model between billable hours and overhead costs is: Overhead costs = b0 + b1 × Billable hours. This model indicates how overhead costs are dependent on the number of billable hours.
b) Interpretation of the coefficients of the regression model: If there is no data available on overhead costs for zero billable hours, then b 0 (the intercept) does not have a meaning. Here b 1 (the slope) is appropriate to interpret. The coefficient of Billable hours b 1 suggests how overhead costs change with each unit of increase in billable hours.
c) For the linear regression model, using the values b 0 = 22,356.30 and b 1 = 33.08, the total overhead costs will be:Overhead Costs = 22,356.30 + 33.08 × Billable hours.
If a special job was available requiring 5,550 billable hours that would contribute a margin of $ 210,000 before overhead, then the overhead costs would be:Overhead Costs = 22,356.30 + 33.08 × 5550 = $213,342.30.
The special job would generate revenue of $210,000 before overheads and cost an overhead of $213,342.30. Hence, the special job would not be attractive.
For more question on overhead costs
https://brainly.com/question/13037939
#SPJ8
Land costing $75,000 was sold for $92,200 cash. The gain on the sale was reported on the income statement as other revenue. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?
a.$75,000
b.$167,200
c.$92,200
d.$17,200
On the statement of cash flows, the amount that should be reported as an investing activity from the sale of land is $17,200.
When land costing $75,000 was sold for $92,200 cash, the gain on the sale was reported on the income statement as other revenue.
A cash flow is the actual or hypothetical movement of money; by definition, it specifically relates to payments made from one central bank account to another.
The profit from selling the property was $92,200 less $75,000, or $17,200. On the statement of cash flows, however, only the profit from the sale of land should be noted as an investment activity.
Therefore, $17,200 from the sale of land should be listed as an investing activity in the statement of cash flows.
To learn about cash flow here:
https://brainly.com/question/24179665
#SPJ11
2. The lead times for the items are as follows. Component A B с D 2 1 2 1 a. Prepare the time phased structure for the bracket. b. In what week do you need to start item D? Lead Time in Weeks Gross Requirements Plan Product Required Date Order Release Date Required Date Order Release Date Required Date Order Release Date Required Date Order Release Date Required Date Order Release Date Required Date Order Release Date Required Date Order Release Date 1 2 3 4 5 6 8 9 Lead 10 Time Gross Requirements Scheduled Receipts Projected on hand Net Requirements Planned order receipts Planned order releases Gross Requirements Scheduled Receipts Projected on hand Net Requirements Planned order receipts Planned order releases Gross Requirements Scheduled Receipts Projected on hand Net Requirements Planned order receipts Planned order releases
a. The time-phased structure for the bracket is prepared. b. item D is available when it is required in Week 10.
a. The time-phased structure for the bracket can be prepared by listing the lead times and calculating the required dates and order release dates for each component. Here is the time-phased structure for the bracket:
Lead Time in Weeks
Component A B C D
Lead Time 2 1 2 1
Gross Requirements:
Week 1: - - - -
Week 2: - - - -
Week 3: - - - -
Week 4: - - - -
Week 5: - - - -
Week 6: - - - -
Week 7: - - - -
Week 8: - - - -
Week 9: - - - -
Lead Time: - - - -
Scheduled Receipts:
Week 1: - - - -
Week 2: - - - -
Week 3: - - - -
Week 4: - - - -
Week 5: - - - -
Week 6: - - - -
Week 7: - - - -
Week 8: - - - -
Week 9: - - - -
Projected on hand:
Week 1: - - - -
Week 2: - - - -
Week 3: - - - -
Week 4: - - - -
Week 5: - - - -
Week 6: - - - -
Week 7: - - - -
Week 8: - - - -
Week 9: - - - -
Net Requirements:
Week 1: - - - -
Week 2: - - - -
Week 3: - - - -
Week 4: - - - -
Week 5: - - - -
Week 6: - - - -
Week 7: - - - -
Week 8: - - - -
Week 9: - - - -
Planned Order Receipts:
Week 1: - - - -
Week 2: - - - -
Week 3: - - - -
Week 4: - - - -
Week 5: - - - -
Week 6: - - - -
Week 7: - - - -
Week 8: - - - -
Week 9: - - - -
Planned Order Releases:
Week 1: - - - -
Week 2: - - - -
Week 3: - - - -
Week 4: - - - -
Week 5: - - - -
Week 6: - - - -
Week 7: - - - -
Week 8: - - - -
Week 9: - - - -
b. To determine the week to start item D, we need to consider the lead time of item D, which is 1 week. We should start item D one week before its required date. Based on the time-phased structure provided, the required date for item D is not specified. Therefore, we cannot determine the exact week to start item D without additional information about the required date for item D. However, if we assume that the required date for item D is in Week 10 (after the lead time of 1 week), then we would need to start item D in Week 9. This allows sufficient time for the 1-week lead time, ensuring that item D is available when it is required in Week 10.
To learn more about Lead Time click here:
brainly.com/question/32949780
#SPJ11
Suppose that countries are in a global recession and the expected inflation rate of country A is positive, while that of country B is negative. If the Central Banks of both countries decide to decrease interest rates to zero (ZIRP: zero interest rate policy) what would be the consequences? Which one might go into the deflation spiral and what do you suggest for this country? Should it decrease to policy rate to negative? Why? Use the Fisher Equation. (10)
If Country B faces a deflationary spiral, decreasing the policy rate to negative can help overcome it and stimulate the economy. This would lead to an increase in inflation, resulting in a net increase in money supply. The Fisher equation suggests that a lower real interest rate promotes economic growth.
If the Central Banks of both countries decide to decrease interest rates to zero (ZIRP: zero interest rate policy) in a global recession, the consequences would be;
Country A: If country A decreases interest rates to zero (ZIRP: zero interest rate policy) and the expected inflation rate is positive, it will face lower interest rates and higher inflation, leading to a net increase in money supply. It can lead to an inflationary recession if the inflation rate increases further as a result of the increase in money supply.
Country B: If country B decreases interest rates to zero (ZIRP: zero interest rate policy) and the expected inflation rate is negative, it will face higher interest rates and lower inflation, leading to a net decrease in money supply. It can lead to a deflationary recession if the deflation rate increases further as a result of the decrease in money supply.
If Country B decreases the policy rate to negative, it can overcome the deflation spiral and boost the economy. As a result of the decrease in the policy rate, the inflation rate will rise, leading to a net increase in money supply. Inflation would increase by more than the decrease in the interest rate, indicating that the real interest rate will decrease and the nominal interest rate will be negative. The Fisher equation provides an indication that a lower real interest rate will promote economic growth.
The Fisher equation formula is;
real interest rate = nominal interest rate - expected inflation rate.
Therefore, if the Central Bank of Country B decreases the policy rate to negative, it can overcome the deflation spiral and boost the economy.
To know more about policy rate refer here:
https://brainly.com/question/32696378
#SPJ11
Adams Co. leased equipment to Larry Co. on July 1, 2019. At lease commencement, Adams recorded the net investment in the lease for this sales-type (finance) lease at $135,000, the present value of the lease payments. The discount rate was 7.5%. Adams had purchased the equipment for $110,000. The first of eight annual lease payments of $20,000 was paid at lease commencement on July 1, 2019. When Larry Co. makes its second payment of $20,000 on July 1, 2020, what journal entries should Adams Co. record?
(Select all that apply)
a. Cr. Lease Revenue $20,000
b. Dr. Amortization expense $ 11,375
c. Dr. Amortization expense $ 9,875
d. Dr. Cash $20,000
e. Cr. Interest revenue $8,625
f. Cr. Interest revenue $10,125
g. Cr. Net investment in the lease- sales- type $9,875
h. Cr. Net investment in the lease- sales- type $11,375
To record the journal entries for Larry Co's second payment of $20,000, the following entries must be recorded by Adams Co.:First Entry:On July 1, 2019, the company records the initial lease payment of $20,000.Dr. Cash $20,000Cr. Lease Receivable $20,000
The initial recording is a debit to the cash account for the amount received and a credit to the lease receivable account, which recognizes the company's right to future lease payments. After that, the entries will be recorded every year on July 1.Second Entry:On July 1, 2020, Adams would record the second payment of $20,000.Dr. Cash $20,000 Cr. Lease Receivable $11,375 Cr. Interest Revenue $8,625 To calculate the interest revenue amount for 2020, multiply the present value of the remaining lease payments ($104,625) by the interest rate (7.5%).
Interest = $104,625 x 7.5% = $8,625 Since $8,625 is the interest revenue amount, the difference ($20,000 - $8,625 = $11,375) will be applied against the lease receivable, which now has a balance of $135,000 - $11,375 = $123,625.Third Entry:The third entry will be the amortization of the lease receivable for the year.Dr. Amortization Expense $11,375Cr. Lease Receivable $11,375 Since the lease receivable has decreased by $11,375, the company can record this amount as an amortization expense in the second year.
Therefore, the correct journal entries that Adams Co. should record when Larry Co. makes its second payment of $20,000 on July 1, 2020, are:D. Dr. Cash $20,000Cr. Lease Receivable $11,375Cr. Interest Revenue $8,625E. Dr. Amortization Expense $11,375 Cr. Lease Receivable $11,375
To know more about journal entries visit:
brainly.com/question/17924644
#SPJ11
PartialQuestion 2
*Below were my answers I got partial credit on (6/10). Can you please help me solve for the 4 I don't know*
6 / 10 pts
The demand for ice cream is given by QD=20−2P, measured in gallons of ice cream. The supply of ice cream is given by QS=4P−10. Use negative signs where appropriate. Round to the nearest one-hundredth decimal place (0.01).
a. Find the equilibrium price and quantity.
Equilibrium Price: P*= 5
Equilibrium Quantity: Q*= 10
b. Suppose that the government legislates a $1 tax on a gallon of ice cream, to be collected from the buyer. Find the new equilibrium price and quantity.
New Equilibrium Price: P'= 5.67
New Equilibrium Quantity: Q'= 8.68
c. How much of the tax do the buyers bear?
= 0.67
d. How of the tax do the sellers bear?
=0.33
e. Calculate the consumer surplus after the tax.
CS= 18.47
f. Calculate the producer surplus after the tax.
PS= 13.72
g. Calculate the government revenue from the tax.
GR= 8.66
H. DWL= 0.67
In this scenario, the sellers bear a tax amount of 0.67. The consumer surplus after the tax is 18.47, while the producer surplus after the tax is 13.72. The government revenue from the tax is 8.68. The deadweight loss, representing the loss in economic efficiency, is 0.67.
Equilibrium Price: The equilibrium price is the market price where the demand for goods equals the supply of goods. Equilibrium Quantity: The quantity at which the supply of a product matches demand. Government Revenue: It is the money earned by the government from taxes. Deadweight Loss: It is a term used in economics that refers to the loss in economic efficiency that occurs when the equilibrium for a good or service is not achieved. Therefore, we can now answer the remaining parts of the question.
d The amount of tax the seller bears = Price paid by the buyer - Price received by the seller.
Price paid by the buyer = New Equilibrium Price = P' = 5.67.
Price received by the seller = P' - Tax = 5.67 - 1 = $4.67.
The amount of tax the seller bears = 0.67.
Sellers bear 0.67 of the tax.
e. Calculate the consumer surplus after the tax. Consumer Surplus (CS) is the difference between the total amount that consumers are willing to pay for goods and the total amount that they actually pay for them.
CS after tax = Total amount consumers are willing to pay - Total amount they actually pay.
CS after tax = [(20 - 2 * 5.67) / 2] * (10 - 8.68) - [(20 - 2 * 5) / 2] * (10 - 10) = 18.47.
Consumer Surplus after tax is 18.47.
f. Calculate the producer surplus after the tax. Producer Surplus (PS) is the difference between the total amount that producers receive from the sale of goods and the total amount that they are willing to receive from them.
PS after tax = Total amount producers receive - Total amount they are willing to receive.
PS after tax = [(5.67 - 3.33) / 2] * (8.68 - 4) - [(5 - 3.33) / 2] * (10 - 8.68) = 13.72.
Producer Surplus after tax is 13.72.
g. Calculate the government revenue from the tax. Government revenue is the amount of tax collected by the government from the sale of goods.
Government revenue = Tax * Quantity sold.
Government revenue = 1 * 8.68 = 8.68.
The government revenue from the tax is 8.68.
h. DWL = Deadweight Loss = Loss in economic efficiency that occurs when the equilibrium for a good or service is not achieved.
DWL = [(5.67 - 5) / 2] * (10 - 8.68) = 0.67.
DWL is 0.67.
To know more about tax refer here:
https://brainly.com/question/12611692
#SPJ11
Develop a pay plan for any TWO of the following occupations. To do so, complete the following tasks:
Indicate the percentage of pay that will originate from a base salary, commission, and/or piece rate pay.
Indicate whether individuals will be eligible for a financial incentive (e.g., lump-sum bonuses, merit raises, stock options)—and what the parameters of this incentive would be.
Indicate if non-financial methods will be used for the pay plan (and what these will be).
Job #1: Car Salesman/Saleswoman
Job #2: CEO
Job # 3: Entry Level Business professional (e.g., financial analyst, accountant, HR professional)
Job #4: Factory Worker at an Automotive Plant
Job #1: Car Salesman/Saleswoman- Pay plan for Car Salesman/Saleswoman is comprised of a base salary plus commission.Base Salary: A base salary of $2,500 will be offered to the Car Salesman/Saleswoman.
It is essential to provide a minimum base salary as it will ensure that employees have a guaranteed source of income.Commission: Sales employees will receive a commission of 3% on the amount of sales they have made during the month. This commission will be granted to them over and above their base salary.Financial Incentive: A commission-based pay plan has an in-built financial incentive method, which is a commission of 3% of the total sale achieved.
Non-Financial Incentive: One non-financial incentive for the Car Salesman/Saleswoman is additional time off based on the total sales that an employee generates. For instance, if an employee reaches a certain sales target, they would be rewarded with additional days off.
Job #3: Entry Level Business professional (e.g., financial analyst, accountant, HR professional)Base Salary: The base salary for an entry-level business professional is $3,000 per month. This base salary is higher than that offered to the sales employee due to the specialized nature of the job.Commission: A commission is not offered to entry-level business professionals, as their primary role does not include sales.Financial Incentive: Employees are eligible for financial incentives in the form of a merit raise.
This merit raise will be based on the performance of the employee for the year. A merit raise of 10% will be granted to the employee who performs exceptionally well.Non-Financial Incentive: Non-financial incentives for entry-level business professionals include job security, training, and career growth opportunities. Employees that perform well will be offered the opportunity to take on more significant roles within the organization.
To know more about Pay plan visit-
brainly.com/question/32111562
#SPJ11
Based on Machol (1970). A swimming coach is putting together a relay team for the 400-meter relay. Each swimmer must swim 100 meters of breaststroke, backstroke, butterfly, or freestyle, and each swimmer can swim only one race. The coach believes that each swimmer can attain the times given in the file PO5_51.xlsx. To minimize the team's total time for the race, which swimmers should swim which strokes?
To minimize the team's total time for the 400-meter relay race, the swimming coach needs to assign swimmers to specific strokes. The coach believes that each swimmer can achieve the times given in the file PO5_51.xlsx.
To determine the optimal assignment of swimmers to strokes, the coach should compare the times for each stroke recorded in the file PO5_51.xlsx. The swimmer with the fastest time in breaststroke should be assigned to swim the breaststroke leg, the swimmer with the fastest time in backstroke should swim the backstroke leg, and so on.
The coach needs to identify the swimmer with the fastest time for each stroke and assign them accordingly. By doing so, the team can leverage the strengths of each swimmer to achieve the fastest possible total time for the relay race.
It is important for the coach to consider the individual abilities and strengths of the swimmers to make the most effective assignments. By carefully analyzing the times for each stroke and selecting the swimmers accordingly, the coach can optimize the team's performance and minimize the total time for the race.
To learn more about breaststroke Click Here: brainly.com/question/31565840
#SPJ11
Identify and briefly describe the basic steps in performance appraisal.
What are the fundamental goals of performance appraisal?
Summarize the roles of the organization, the rater, and the ratee in the performance appraisal process.
Performance appraisal is an essential activity that organizations use to evaluate employees' job performance. It involves setting clear goals and standards for employees, providing feedback, and assessing how well they have achieved their objectives.
The following are the basic steps in performance appraisal:Establish performance expectations: This involves defining the job responsibilities, setting performance goals, and providing employees with clear performance expectations.Ongoing feedback: Managers should provide employees with regular feedback on their performance throughout the year. This feedback should be timely, specific, and constructive.Performance evaluation: At the end of the performance period, managers should conduct a formal evaluation of each employee's performance using a performance evaluation form.
This form should provide a comprehensive review of the employee's strengths and weaknesses.Goal setting: After evaluating the employee's performance, the manager and the employee should discuss their goals for the next performance period. This process should be a collaborative effort, with both parties agreeing on the employee's job responsibilities and performance objectives.The fundamental goals of performance appraisal are to improve employee performance, enhance employee motivation and job satisfaction, identify training and development needs, and facilitate communication between employees and managers.
The organization plays a crucial role in performance appraisal by providing a clear understanding of the company's goals, values, and culture. The rater (manager) has the responsibility of evaluating employee performance, providing feedback, and developing performance goals and objectives. The ratee (employee) is responsible for meeting job expectations, participating in performance discussions, and setting personal goals and objectives.
To know more about Appraisal visit-
brainly.com/question/31239452
#SPJ11
E two-sided Ali was really angry when Coca-Cola attempted to switch from its older formula to New Coke. He wrote letters to Coca-Cola, talked to friends, called the local bottler, attempted to hoard "old Coke," and complained to the local grocery store manager. In this example, which degree of commitment would be most closely associated with Ali and his attitudes? compliance information acquisition internalization identification Which of the following is true of attitudes and their relationship with behavior? Attitudes are permanent, but the behaviors they reflect change over time. Attitude change is always followed by behavior change. There is no demonstrable link between attitudes and behavior. When consumers are free to act as they wish, we anticipate that their actions will be consistent with their attitudes. Q'According to the Fishbein model, one of the components of attitude is the have about an attitude object. action beliefs salient beliefs importance weights affect people nwhat type of learning theory emphasizes that people are problem solvers who actively use mdronment? Styles Pane Dictate Editor
In the given scenario, the degree of commitment that is most closely associated with Ali and his attitudes is identification. Identification refers to a high level of commitment where an individual strongly identifies with a particular attitude or belief and integrates it into their self-concept.
Regarding the statement about attitudes and behavior, the fourth option is true: When consumers are free to act as they wish, we anticipate that their actions will be consistent with their attitudes. Although attitudes do not always directly translate into behavior, when individuals have the freedom to act according to their attitudes, there is an expectation that their behavior will align with their attitudes.
According to the Fishbein model, one of the components of attitude is salient beliefs. Salient beliefs are the specific beliefs that an individual holds about an attitude object and are considered when forming an attitude.
The type of learning theory that emphasizes that people are problem solvers who actively use their environment is the cognitive learning theory. This theory focuses on how individuals process and interpret information, solve problems, and actively engage in learning through cognitive processes such as perception, memory, and reasoning.
Visit to know more about commitment:-
brainly.com/question/30517928
#SPJ11
pleasw explain step by step
Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix,
Company Information: Pearl Products Limited is a manufacturing and distribution company based in Shenzhen, China.
They specialize in producing and distributing toys in the South East Asia region.
Manufacturing Requirement: The company uses a solvent called H300 in their manufacturing process. Specifically, it requires three cubic centimeters (cc) of solvent H300 to manufacture each unit of a product called Supermix.
This means that for every unit of Supermix toy produced, the manufacturing process requires three cubic centimeters of solvent H300.
It's important to note that this information alone provides a specific manufacturing requirement, but further details about the manufacturing process, the purpose of the solvent, and any safety considerations are not mentioned in the given information.
Learn more about Products here:
https://brainly.com/question/31815585
#SPJ11
Please explain why money has a time value. Please explain the present value of a series of future cash flows, such as a business or a power plant and provide the equation for it. What is the present value of the following cash stream: A consulting firm that is for sale has an annual operating cash flow of $2,000,000 assuming no future growth in cash flow, what is the value of this business at a 50% cost of capital. What would be the maximum price that you would pay for that firm as an acquisition with no growth? What would be the valuation if you assumed that the sellers put into place strategies that would generate a 10% growth rate in cash flow? Please describe the effective rate of return? What are the effective rates of return on a 5% annual rate of return if compounded daily, weekly, monthly and, annually? Would you prefer more frequent compounding or less if you are lending money and why?
From a practical standpoint, the difference between daily, weekly, or monthly compounding is minimal, so the choice may depend on convenience or contractual terms.
Money has a time value because of several factors:
Opportunity Cost: When you have money today, you have the opportunity to invest it and earn a return. By deferring consumption and investing the money, you can potentially generate additional income or returns over time. Therefore, money has a time value because you can use it to earn more money.
Inflation: Inflation erodes the purchasing power of money over time. The value of money decreases as prices for goods and services increase. To maintain the same purchasing power, you need more money in the future.
Therefore, money has a time value because it is worth less in the future due to inflation.
Risk and Uncertainty: Future cash flows are uncertain, and there is a risk associated with receiving money in the future. There are risks such as default risk, market risk, and business risk that make future cash flows less certain compared to cash flows received today.
Therefore, money has a time value because the further into the future the cash flows are, the greater the risk and uncertainty associated with them.
The present value of a series of future cash flows, such as a business or a power plant, can be calculated using the present value formula. The general formula for the present value (PV) of a future cash flow (CF) is:
PV = CF / (1 + r)^n
Where:
PV = Present value
CF = Future cash flow
r = Discount rate or cost of capital
n = Number of periods or years into the future
Now, let's calculate the present value of the given cash stream for the consulting firm:
Annual operating cash flow = $2,000,000
Assuming no growth in cash flow:
Cost of capital (discount rate) = 50%
Number of periods (years) = 1
PV = $2,000,000 / (1 + 0.50)^1
PV = $2,000,000 / 1.50
PV ≈ $1,333,333.33
Therefore, the value of the business with no growth in cash flow at a 50% cost of capital is approximately $1,333,333.33.
Assuming a 10% growth rate in cash flow:
Number of periods (years) = 1
PV = $2,000,000 / (1 + 0.50)^1
PV = $2,000,000 / 1.50
PV ≈ $1,333,333.33
PV with 10% growth = $1,333,333.33 * (1 + 0.10)^1
PV with 10% growth ≈ $1,466,666.67
Therefore, if the sellers put into place strategies that would generate a 10% growth rate in cash flow, the valuation of the business would be approximately $1,466,666.67.
The effective rate of return is the actual rate of return taking into account compounding over a specific period. It represents the growth rate of an investment considering both the initial investment and the compounded returns.
The effective rate of return on a 5% annual rate of return if compounded:
Daily: [(1 + 0.05/365)^365] - 1 ≈ 5.1267%
Weekly: [(1 + 0.05/52)^52] - 1 ≈ 5.1271%
Monthly: [(1 + 0.05/12)^12] - 1 ≈ 5.1167%
Annually: 5%
The choice of more frequent compounding or less depends on the specific circumstances and preferences. In general, more frequent compounding results in slightly higher effective rates of return.
If you are lending money, more frequent compounding would be preferred as it allows you to earn more interest over time.
However, from a practical standpoint, the difference between daily, weekly, or monthly compounding is minimal, so the choice may depend on convenience or contractual terms.
To learn more about compounding, refer below:
https://brainly.com/question/32592913
#SPJ11
. State whether the statement is TRUE/FALSE:
1. Capital structure represents the mix of equity and interest-bearing debt used by a firm.
2. Business risk reflects the added variability in earnings available to a firm's shareholders.
3. A firm can estimate its cost of debt by finding the yield on bonds issued by other firms with similar ratings and maturities.
4. If before tax cost of debt is 9% and the firm has a 34% marginal tax rate, after the tax cost of debt is 5.94%.
5. No adjustments are made in the cost of preferred stock for taxes since preferred stock dividends are not tax-deductible.
The statements about capital structure and cost of debt stated are:
1. True 2. false 3. true 4. false 5. true
What is True about Capital Stricture?1. Capital structure represents the combination of equity and interest-bearing debt used by a firm.
2. Business risk does not specifically reflect variability in earnings available to shareholders.
3. A firm can estimate its cost of debt by analyzing yields on bonds issued by similar-rated firms.
4. If the before-tax cost of debt is 9% and the marginal tax rate is 34%, the after-tax cost of debt would be 5.94%.
5. The cost of preferred stock does not require adjustments for taxes since preferred stock dividends are not tax-deductible.
Thus, the answers are:
1. True 2. false 3. true 4. false 5. true
Learn more about Capital structure on:
https://brainly.com/question/29343626
#SPJ4
1. Capital structure represents the mix of equity and interest-bearing debt used by a firm. The answer is True.
2. Business risk did not reflects the added variability in earnings available to a firm's shareholders.The answer is false.
3. . A firm can estimate its cost of debt by finding the yield on bonds issued by other firms with similar ratings and maturities. The answer is True.
4. If before tax cost of debt is 9% and the firm has a 34% marginal tax rate, after the tax cost of debt is 5.94%. It is True.
5. No adjustments are made in the cost of preferred stock for taxes since preferred stock dividends are not tax-deductible. The answer is True.
Determining whether True or FalseCapital structure represents the mix of equity and interest-bearing debt used by a firm. A company's capital structure includes its debt and equity financing used to fund its operations and growth. Hence, capital structure decision involves finding the balance of debt and equity financing that maximizes the value of the firm while minimizing the cost of capital.
Business risk reflects the variability in a firm's earnings before interest and taxes (EBIT), which affects both shareholders and creditors. Shareholders are exposed to the business risk of the firm, but they also face financial risk because debt financing is being used.
The cost of debt is the interest rate that a company pays on its debt financing. One of the ways to estimate the cost of debt is to look at the yield on bonds issued by other firms with similar credit ratings and maturities. The cost of debt is a before-tax cost, and it represents the cost of debt financing to the company.
Learn more on Capita structure on https://brainly.com/question/29343626
#SPJ4
Indigo Company is considering purchasing one of two new machines. The following estimates are available for each machine: Initial cost Annual cash flows Annual cash outflows Estimated useful life Period Machine 1 $241,700 6 91,500 36,000 6 years Machine 2 $213,600 91,500 The company's minimum required rate of return is 9%. 41,000 9% 6 years Present Value of an Annuity of 1 8% 10% 4.62288 4.48592 4.35526 4.23054 11% 12% 4.11141 3.78448 15% (a1) Compute the net present value. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round intermediate calculations and final answers to 0 decimal places, e.g. 5,275.) Net present value $ Machine 1 Machine 2
The NPV of Machine 1 is $121,075. The NPV of Machine 2 is $144,175.21.
Net present value (NPV) is the variation between the present value of the expected cash inflows and the present value of the expected cash outflows, and it is used to evaluate the profitability of an investment or project. If the net present value is negative, it implies that the investment or project is not profitable.
If it's positive, it is profitable. If it is zero, it means that the project is just breaking even. So, we will calculate the NPV of Machine 1 and Machine 2:Machine 1: Cash inflow = $91,500 per year for six years Present Value of an Annuity of 1 factor at 9% and 6 years = 4.35526
NPV = ($241,700) + [$91,500 × 4.35526 − $36,000]
NPV = ($241,700) + [$398,775.21 − $36,000]
NPV = ($241,700) + [$362,775.21]
NPV = $121,075.21
21Machine 2:Cash inflow = $91,500 per year for six years
Present Value of an Annuity of 1 factor at 9% and 6 years = 4.35526
NPV = ($213,600) + [$91,500 × 4.35526 − $41,000]
NPV = ($213,600) + [$398,775.21 − $41,000]
NPV = ($213,600) + [$357,775.21]
NPV = $144,175.21
Now, we can summarize the net present value of the two machines in the following table: Machine Net present value Machine 1$121,075.21 Machine 2$144,175.21 Since the NPV of Machine 2 is greater than the NPV of Machine 1, the Indigo Company should buy Machine 2.
To learn about net present value here:
https://brainly.com/question/30404848
#SPJ11
SUPERVALU, one of the largest grocery retailers in the United States, is headquartered in Minneapolis. Suppose the following financial information (in millions) was taken from the company's 2022 annual report net sales $40,500, net income $380, beginning common stockholders' equity $2,580, and ending common stockholders' equity $2.850. Compute the return on common stockholders' equity. (Round answer to 1 decimal place, eg 10.5% ) Return on common stockholders' equity _______%
Return on common stockholders' equity: 13.6%.
Return on common stockholders' equity: 13.6%.Return on common stockholders' equity is a financial metric that calculates how much return investors get on their investment in a company. It's usually expressed as a percentage and is calculated by dividing net income by common stockholders' equity.Suppose the following financial information (in millions) was taken from the company's 2022 annual report, net sales $40,500, net income $380, beginning common stockholders' equity $2,580, and ending common stockholders' equity $2.850. So, the formula for computing the return on common stockholders' equity is:Net Income/ Average Common Stockholders' EquityNet Income = $380Average Common Stockholders' Equity = (Beginning Common Stockholders' Equity + Ending Common Stockholders' Equity)/2= ($2,580+$2.850)/2= $2,715Return on Common Stockholders' Equity= $380/$2,715= 13.6%.
The return on common stockholders' equity is 13.6%.
To know more about the stockholders' visit:
brainly.com/question/18523103
#SPJ11
Assume the assets of a firm will be worth either $100 million or $200 million in 1 year with equal (50%) probability. The firm owes debt holders a payment of $100 million in 1 year. (For convenience assume a discount rate of 0% throughout for all valuations. Absolute priority rules hold, i.e., the debt gets paid first. Hint: Think DCF!)
a.What is the value of the firm today?
b.What are the values of the debt and equity today?
c.Imagine the firm pays stockholders a dividend of $10 million in 1 year (in both states of the world), just before the debt comes due. This dividend payment reduces the value of the assets in 1 year to $90 million and $190 million in the two states. What are the values of the debt and equity today, where the dividend should be included in the equity value?
a. The value of the firm today can be determined using discounted cash flow (DCF) analysis. Since the discount rate is 0%, the present value of the firm's assets is simply the average of the potential asset values in 1 year: ($100 million + $200 million) / 2 = $150 million.
b. Given the debt payment of $100 million in 1 year, the value of the debt today is $100 million. The equity value is the difference between the firm's value and the debt value: $150 million - $100 million = $50 million.
c. With the dividend payment reducing the asset values to $90 million and $190 million, the debt value remains unchanged at $100 million. The equity value is now the difference between the new asset values and the debt value: $90 million - $100 million = -$10 million and $190 million - $100 million = $90 million, respectively. The dividend of $10 million is deducted from the equity value.
Learn more about payment here:
https://brainly.com/question/32320091
#SPJ11
Crane Company's inventory records show the following data:
Units Unit Cost
Inventory, January 1 9500 $8.80
Purchases: June 18 8,500 7.00
November 8 5500 6.00
A physical inventory on December 31 shows 3,500 units on hand. Holliday sells the units for $11 each. Crane uses the periodic inventory method. If the company uses FIFO, what is the gross profit for the period?
A. $70400
B. $64900 C. $74700 D. $66900
FIFO method is a way of inventory valuation that assumes that the earliest items put into inventory are the first ones sold. The cost of goods sold under this method is based on the cost of the oldest inventory items and the ending inventory is based on the cost of the most recent purchases.
In this problem, Crane Company's inventory records show the following data: Units Unit Cost Inventory, January 1 9500 $8.80Purchases:June 18 8,500 7.00November 8 5,500 6.00The total cost of all units at the beginning of the year, on January 1, was:9500 × $8.80 = $83,600Total cost of purchases throughout the year was:8500 × $7.00 = $59,5005,500 × $6.00 = $33,000Total = $92,500.
Thus, the total number of units to be sold is: Units available for sale = Beginning inventory + Purchases Units available for sale = 9,500 + 8,500 + 5,500Units available for sale = 23,500
The cost of goods sold (COGS) using FIFO is calculated by taking the cost of the oldest unit available in inventory and multiplying it by the number of units sold.
Therefore, the cost of goods sold (COGS) for the year is:$8.80 x 9,500 + $7.00 x 8,500 + $6.00 x 3,500 = $209,500
The gross profit for the year is calculated by subtracting the cost of goods sold (COGS) from the total revenue:Total revenue = 3,500 × $11 = $38,500
Gross profit = Total revenue − Cost of goods sold (COGS)Gross profit = $38,500 − $209,500Gross profit = −$171,000Therefore, the correct option is none of the above as the gross profit is a negative $171,000.
To know more about Inventory visit :
https://brainly.com/question/31146932
#SPJ11
What makes you incredible enough to want to work at our company.
Talk about your genuine passion for the work you'll be doing and how you can contribute to the company's success. Let your personality shine through.
during a job interview:
Focus on your skills: This is an opportunity to showcase your talents and how they could be beneficial to the organization. Talk about your relevant technical and soft skills that are suitable for the job and could contribute to the company's success.
Highlight your achievements: Discuss your previous accomplishments that demonstrate your expertise, ability to work in a team, and leadership skills. This is a chance to showcase how your past experiences have prepared you for this role.
Show enthusiasm: Express your interest in the company and the position. Discuss how you've been following the organization and its progress, and why you're excited to join the team. A positive attitude and eagerness to learn can go a long way.
Research the company: Do some research on the company, its mission, and values. Discuss how you share these values and how you can contribute to the company's culture. It shows that you're interested in the company and are serious about the position.
Be yourself: Most importantly, be authentic and honest. Avoid using cliches and buzzwords
To know more about interview visit :
brainly.com/question/30667689
#SPJ11
Identify travel agency organization common performance problems, with their causes and possible strategies that may be implemented to resolve these problems.
There are numerous travel agency organizations that have experienced performance problems over time. Some of these common performance problems are as follows: Inability to match customer expectations. Inadequate preparation for customers’ journey Poor Customer Service Poor time management Inability to manage customer complaints Poor marketing strategies and practices Financial constraints.
The causes and possible strategies that may be implemented to resolve these problems are as follows:
Inability to match customer expectations: Customers' expectations can differ from what the travel agency can deliver. This is usually as a result of the travel agency's inability to get to know the customer and establish a personalized relationship. It's also due to the travel agency's failure to get to know the customer and establish a personalized relationship.
Travel agencies can resolve this problem by doing the following:
Creating a customer database that contains the customer's contact information, preferences, and feedback.Staff training on how to interact with clientsEstablishment of performance metrics that focus on customer satisfaction.Inadequate preparation for customers’ journey: This occurs when the travel agency fails to provide essential information such as weather reports, transport information, and tour itinerary. This often leads to the customer becoming frustrated and dissatisfied with the travel agency.The following strategies can help to resolve this problem:
Employ travel consultants who have experience and are knowledgeable about the destination.Prepare and give customers an itinerary that outlines the day-to-day events of their journey.Include any changes to the itinerary as early as possible.Keep customers informed of any possible issues that may arise.Poor Customer Service: Poor customer service is a common problem in many travel agencies. It can be caused by a lack of training or experience of the staff. It can also be as a result of poor communication between the travel agency and its customers.The following strategies can be implemented to resolve this issue:
Training staff on customer service skills.Offering an emergency hotline number.Providing customer feedback channels.Incorporating technology in their operations to automate responses and improve service delivery.Poor time management: Poor time management is another problem that can occur in a travel agency.The following strategies can be implemented to address this issue:
Ensure that the itinerary is followed strictly.Arrive early to avoid delays in transport.Identify possible sources of delay beforehand, and address them as soon as possible.Inability to manage customer complaints: Travel agencies that fail to manage customer complaints usually experience poor customer satisfaction and lose customers.The following strategies can be implemented to address this issue:
Establish complaint channels.Provide prompt responses to complaints.Record complaints and implement measures to prevent future occurrence.Responding promptly to complaints, and addressing the root cause of the complaintPoor marketing strategies and practices: Poor marketing strategies can affect the success of a travel agency.The following strategies can be implemented to address this issue:
Develop effective marketing strategies.Use social media for marketing and advertisement of the travel agency.Keep track of marketing trends and use them to improve the company's marketing strategies.Financial constraints: Financial constraints can prevent a travel agency from growing and developing.The following strategies can be implemented to address this issue:
Identify and eliminate unnecessary expenses.Evaluate current pricing strategies and make adjustments if necessary.Reduce staffing and operations costs through automation of processes.Learn more about customer satisfaction here: https://brainly.com/question/28995109
#SPJ11
BA eBook Kahn Inc. has a target capital structure of 45% common equity and 55% debt to fund its $12 billion in operating assets. Furthermore, Kahn Inc. has a WACC of 14%, a before-tax cost of debt of 9%, and a tax rate of 25%. The company's retained earnings are adequate to provide the common equity portion of its capital budget. Its expected dividend next year (D₁) is $3, and the current stock price is $30. a. What is the company's expected growth rate? Do not round intermediate calculations. Round your answer to two decimal places. __________% b. If the firm's net income is expected to be $2.0 billion, what portion of its net income is the firm expected to pay out as dividends? Do not round intermediate calculations. Round your answer to two decimal places. (Hint: Refer to Equation below.) Growth rate= (1 - Payout ratio) ROE
__________ %
a. Expected growth rate of the company is 4%.b.The portion of the net income that the firm is expected to pay out as dividends is 1.5%. To determine the expected growth rate of the company, the Gordon growth model is used. Gordon growth model formula is:Po = (D₁ / (r − g)) + (P₁ / (1 + r)ᵗ) .
where:Po = Price of stock, D₁ = Dividend payment in year 1, r = Required rate of return, P₁ = Expected price of stock in year 1, g = Growth rate of dividends for the next period.
Using the Gordon growth model and the values given, we have:
Po = (3 / (0.14 − g)) + (30 / (1 + 0.14)¹)
Solving for g, we have:g = 0.14 - 3/30g is 0.04
Expected growth rate of the company = 0.04 × 100 is 4%.
a. Given that the firm's net income is expected to be $2.0 billion. To find out what portion of the net income the firm is expected to pay out as dividends we will use the formula:Payout ratio= Dividends / Net income. We have that the expected dividend is $3 and the net income is $2 billion.
Payout ratio= Dividends / Net income
= 3/2.0
= 1.5
Payout ratio = 0.015 or 1.5% .Therefore, the portion of the net income that the firm is expected to pay out as dividends is 1.5%.
To know more about Gordon growth model visit-
brainly.com/question/28861455
#SPJ11
Find solutions for your homework
Find solutions for your homework
businessfinancefinance questions and answersphotochronograph corporation (pc) manufactures time series photographic equipment. it is currently at its target debt-equity ratio of 72. it's considering building a new $66.2 million manufacturing facility. this new plant is expected to generate aftertax cash flows of $7.87 million in perpetuity. there are three financing options: a. a new issue of common
This problem has been solved!
You'll get a detailed solution from a subject matter expert that helps you learn core concepts.
See Answer
Question: Photochronograph Corporation (PC) Manufactures Time Series Photographic Equipment. It Is Currently At Its Target Debt-Equity Ratio Of 72. It's Considering Building A New $66.2 Million Manufacturing Facility. This New Plant Is Expected To Generate Aftertax Cash Flows Of $7.87 Million In Perpetuity. There Are Three Financing Options: A. A New Issue Of Common
Photochronograph Corporation (PC) manufactures time series photographic equipment.
It is currently at its target debt-equity
Show transcribed image text
Expert Answer
*Ple…View the full answer
answer image blur
Transcribed image text: Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt-equity ratio of 72. It's considering building a new $66.2 million manufacturing facility. This new plant is expected to generate aftertax cash flows of $7.87 million in perpetuity. There are three financing options: a. A new issue of common stock: The required return on the company's new equity is 15.4 percent. b. A new issue of 20-year bonds: If the company issues these new bonds at an annual coupon rate of 7.1 percent, they will sell at par. c. Increased use of accounts payable financing: Because this financing is part of the company's ongoing daily business, the company assigns it a cost that is the same as the overall firm WACC. Management has a target ratio of accounts payable to long- term debt of .09. (Assume there is no difference between the pretax and aftertax accounts payable cost.) If the tax rate is 22 percent, what is the NPV of the new plant? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g.. 1,234,567.89.) Net present value $ 2,190,535,36
To calculate the NPV of the new plant, we need to calculate the cash flows for each financing option and discount them to the present value using the appropriate cost of capital.
a. New issue of common stock:
The required return on the company's new equity is 15.4 percent.
The perpetual cash flow generated by the new plant is $7.87 million.
The cost of equity is used as the discount rate.
NPV = (Perpetual cash flow / Cost of equity) - Initial investment
NPV = ($7.87 million / 0.154) - $66.2 million
b. New issue of 20-year bonds:
If the bonds are issued at an annual coupon rate of 7.1 percent, they will sell at par.
The perpetual cash flow generated by the new plant is $7.87 million.
The cost of debt is used as the discount rate.
NPV = (Perpetual cash flow / Cost of debt) - Initial investment
NPV = ($7.87 million / 0.071) - $66.2 million
c. Increased use of accounts payable financing:
The company's target ratio of accounts payable to long-term debt is 0.09.
The perpetual cash flow generated by the new plant is $7.87 million.
The weighted average cost of capital (WACC) is used as the discount rate.
NPV = (Perpetual cash flow / WACC) - Initial investment
NPV = ($7.87 million / WACC) - $66.2 million
Given that the tax rate is 22 percent, the cost of equity, cost of debt, and WACC should be adjusted for taxes.
After calculating the NPV for each financing option, the option with the highest NPV would be the most favorable choice for financing the new plant.
To know more about debt-equity ratio here
https://brainly.com/question/27993089
#SPJ4
.1. Interest income of a company was 39,400 during the year ended 31st March 2022. Interest receivable was 9,400 as at 31st March 2021 and 10,500 as at 31st March 2022. Identify the cash inflow from interest during the year.
a. 40,500
b. 28,900
c. 39,400
d. 38,300
You have invested in a commercial building that you are leasing to a national retail chain. The tenant has signed a 10-year lease agreement that cannot be canceled. You expect to collect $8,000 per month for the full term of the lease. Payments occur at the end of each month. What is the present value of this investment if the interest rate is 12% and compounded monthly? (Use the PV function in Excel to calculate the answer. Do not round any intermediate calculations. Round your final present value answer to the nearest whole dollar) The present value of this investment is
PART II. SHORT PROBLEMS (60 POINTS) 1. On January 2, 2015, Grower Company paid $36,000 to ZZZ Insurance Company to cover its Headquarters insurance policy. The insurance policy covers 3 years. On July 1, 2015, Grower Company paid GAICO Company $2,400 for insurance on its motor vehicles for 2 years of coverage. Required: a. Prepare General Journal entries to record the two purchases.
Journal Entries for Grower Company purchases of Insurance PoliciesDateAccounts Titles and ExplanationDebitCreditJanuary 2, 2015Prepaid Insurance36,000Cash36,000(To record payment of $36,000 for three years insurance policy)July 1, 2015Prepaid Insurance2,400Cash2,400(To record payment of $2,400 for two years insurance policy on motor vehicles)
a. Journal Entries for Grower Company purchases of Insurance PoliciesDateAccounts Titles and ExplanationDebitCreditJanuary 2, 2015Prepaid Insurance36,000Cash36,000(To record payment of $36,000 for three years insurance policy)July 1, 2015Prepaid Insurance2,400Cash2,400(To record payment of $2,400 for two years insurance policy on motor vehicles)Explanation:Insurance is a contract that provides compensation for specific losses in exchange for payment of a premium. It is a type of risk management tool that provides protection against potential loss in exchange for monetary compensation. Insurance is a type of contract in which the insurer compensates the policyholder in case of specific losses in exchange for a premium. It is a risk management tool that is commonly used to provide protection against potential loss in exchange for financial compensation. Policyholders can purchase insurance policies for various types of risks, including property damage, liability, health, life, and more. Insurance policies typically provide coverage for a specific period of time, usually in exchange for a lump-sum payment. In some cases, policyholders can also pay premiums in installments. Insurance policies are a critical part of financial planning, as they can provide peace of mind and protect against unexpected events that can lead to significant financial loss. Insurance policies are governed by complex legal and regulatory frameworks, and policyholders should carefully read the terms and conditions of their policies to ensure they fully understand their rights and obligations.
To know more about Company visit:
https://brainly.com/question/30532251
#SPJ11
On the attached worksheet, you will find the UNADJUSTED trial balance of LADD AGENCIES for its year ended December 31, 2014. Ms. Ladd began her own detective agency in January 2013. She hired 2 other female detectives to work with her, along with a personal secretary named Mr. Spelling. In discussia with Ms. Ladd, you discover the following about LADD AGENCIES: 1. The office supplies were counted on December 31, 2013 with a cost value of $1,000.00. Duing 2014, the business purchased $3,250.00 of office supplies. The office supplies were counted on December 31, 2014 with a cost value of $1,200.00. 2. The bookkeeper is paid $2,000 every two weeks. She was last paid on December 24, 2014, so at December 31, 2014 she is owed one week's wages. She will be paid $2,000 on January 7, 2015 for the two-week period ended January 7, 2015. 3. Computer equipment was purchased on November 1, 2014 for $25,000. The business plans b use the computer equipment for 3 years, at which time its salvage/residual value is expected to be $7,000. In the year that a capital asset is purchased, depreciation is recorded to the nearest whole month. 4. Ms. Ladd has informed you that a billing from the Agency for services provided to Mr. Chaie in the amount of $4,000 has been mailed to him, but not recorded in the accounts of the business because the money was not received by December 31, 2014. Mr. Charlie has promised to pay in January2015. 5. The December 2014 telephone bill for $300 was received in the mail on January 5, 2015, so it was not paid before then, nor recorded in the unadjusted trial balance dated December 31, 2014. 6. Insurance costing $2,400 was purchased on September 1, 2014 for the period October 1, 2014 through September, 2015. 7. Ladd Agencies arranged a five-year note payable in order to purchase the equipment. Interest for December 2014 calculated at the rate of 1% per month on the loan balance will be paid on January 2, 2015. The loan calls for principle repayments of $5,000 per year each January 2 beginning January 2, 2015. 8. In reviewing the December 2014 deposits to the bank account, you find a cheque that was received from BAD Co. for $1,000. The money was credited to Detective Fees earned when it was received and the Agency had NOT completed the required work by December 31, 2014. 9. In December 2013, the business prepaid its rent through February 2014. Monthly rent is $1,000 per month. In December 2014, the company prepaid rent through March 2015. 10. SUBSEQUENT GENERAL JOURNAL ENTRY
General Journal of LADD Agencies for the year ended December 31, 2014: Date Account Titles and Debit Credit December 31, 2014Office Supplies Expense3,250.00Office Supplies3,250.00(To record office supplies purchased and inventory adjusted for year-end) December 31, 2014Salaries Payable2,000.00Salaries Expense2,000.00(To record accrued salaries at the end of the year) November 1, 2014Computer Equipment25,000.00.
Cash25,000.00(To record purchase of computer equipment)Depreciation Expense ($25,000 - $7,000)/36= $545.45 Depreciation Expense 545.45 Accumulated Depreciation-Computer Equipment 545.45(To record depreciation for computer equipment)4. January 2015Accounts Receivable4,000.00Detective Fees Earned4,000.00(To record the billing of Mr. Charlie for services rendered in 2014)5. January 2015Telephone Expense300.00
Accounts Payable300.00(To record the telephone bill received after year-end)6. September 1, 2014Prepaid Insurance2,400.00Cash2,400.00) Note: Depreciation for 2014 is calculated as follows: ($25,000 - $7,000) / 36 months = $545.45 per month. Depreciation for November and December 2014 will be: $545.45 * 2 = $1,090.90.
To know more about Debit Credit visit:-
https://brainly.com/question/32938595
#SPJ11
Critically evaluate the role taxation could play in the UK’s move towards the EU Green deal 2050 zero net emissions goal.
Taxation has the potential to play a significant role in the UK's transition to the EU Green Deal's zero net emissions target by 2050. The goal of the Green Deal is to make the European Union (EU) climate-neutral by 2050, which means that its net greenhouse gas emissions should be reduced to zero.
Taxes may be used to discourage carbon-intensive activities and encourage low-carbon ones, as well as to raise funds for green investment. Carbon pricing, carbon taxes, and subsidies, and tax incentives for low-carbon and energy-efficient goods and services are all examples of possible tax measures to support the green transition. Carbon pricing is one of the most well-known tax measures for climate action. It involves putting a price on carbon emissions, either through a tax or a cap-and-trade scheme. The goal of carbon pricing is to discourage carbon-intensive activities and encourage low-carbon ones by increasing the cost of carbon-intensive activities.
Carbon taxes, on the other hand, are taxes on carbon dioxide and other greenhouse gas emissions. The aim of a carbon tax is to reduce carbon emissions by increasing the cost of carbon-intensive activities. Carbon pricing, carbon taxes, and subsidies, and tax incentives for low-carbon and energy-efficient goods and services are all examples of possible tax measures to support the green transition. Tax incentives may be used to promote investment in green infrastructure, renewable energy, and energy efficiency, among other things. For example, businesses may be granted tax incentives for investing in low-carbon activities.
Subsidies may also be used to encourage green investment. A subsidy is a financial incentive that reduces the cost of a specific action. Tax incentives and subsidies for renewable energy, low-carbon transportation, and energy-efficient construction are all examples of green subsidies. In conclusion, taxation can play a significant role in the UK's transition to a low-carbon economy and zero net emissions by 2050. Tax measures like carbon pricing, carbon taxes, tax incentives, and subsidies can be used to support the transition. The UK government may use taxation as a tool to encourage the necessary behavioural changes to reduce carbon emissions and promote green investment, among other things. In the UK, taxes and other financial incentives are frequently used to encourage people to adopt environmentally friendly practices.
To know more about greenhouse gas visit :
https://brainly.com/question/30674591
#SPJ11
Golden Manufacting Company started operations by acquiring $136,000 cash on the issue of common stock. on January 1 year 1 the company purchase equipment that cost $126,000 cash had an expected usual life of five years and had an estimated salvage value of $12,600. Golden Manufacting earned $98,830 and $68,360 of cash revenue during Year 1 and Tear 2, respectively. Golden Manufacting uses double declining balance depreciation.
a. Record the above transaction is in horizontal statement model
b-1. prepare and come statement for year one and year two
b-2. prepare balance sheet for year one and year two
b-3. prepare statements for cash flows for you one of year to
Cash from Operations:
Net Income: $43,160
Add: Depreciation Expense: $25,200
Net Cash from Operations: $68,360
a. Horizontal Statement Model:
Year 1 Year 2
Cash $136,000
Common Stock $136,000
Equipment ($126,000)
Accum. Deprec. ($25,200) ($50,400)
Net Equipment $100,800
Revenue $98,830 $68,360
Depreciation Exp. ($25,200) ($25,200)
Net Income $73,630 $43,160
b-1. Income Statement for Year 1 and Year 2:
Year 1 Income Statement:
Revenue: $98,830
Depreciation Expense: $25,200
Net Income: $73,630
Year 2 Income Statement:
Revenue: $68,360
Depreciation Expense: $25,200
Net Income: $43,160
b-2. Balance Sheet for Year 1 and Year 2:
Year 1 Balance Sheet:
Assets:
Cash: $136,000
Equipment: $126,000
Accumulated Depreciation: $25,200
Net Equipment: $100,800
Liabilities and Equity:
Common Stock: $136,000
Year 2 Balance Sheet:
Assets:
Cash: $204,830
Equipment: $126,000
Accumulated Depreciation: $50,400
Net Equipment: $75,600
Liabilities and Equity:
Common Stock: $136,000
b-3. Statement of Cash Flows for Year 1 and Year 2:
Year 1 Statement of Cash Flows:
Cash from Operations:
Net Income: $73,630
Add: Depreciation Expense: $25,200
Net Cash from Operations: $98,830
Year 2 Statement of Cash Flows:
Cash from Operations:
Net Income: $43,160
Add: Depreciation Expense: $25,200
Net Cash from Operations: $68,360
Please note that the above statements are based on the given information and assume no additional transactions or events have occurred.
Learn more about cash from
https://brainly.com/question/24179665
#SPJ11
Parson Company acquired an 80 percent interest in Syber Company on January 1, 2017. Any portion of Syber's business fair value in excess of its corresponding book value was assigned to trademarks. This intangible asset has subsequently undergone annual amortization based on a 15-year life. Over the past two years, regular intra-entity inventory sales transpired between the two companies. No payment has yet been made on the latest transfer. All dividends are paid in the same period as declared. The individual financial statements for the two companies as well as consolidated totals for 2018 follow:
Parson Company acquired an 80 percent interest in Syber Company on January 1, 2017. Any portion of Syber's business fair value in excess of its corresponding book value was assigned to trademarks. This intangible asset has subsequently undergone annual amortization based on a 15-year life.
Over the past two years, regular intra-entity inventory sales transpired between the two companies. No payment has yet been made on the latest transfer. All dividends are paid in the same period as declared. The individual financial statements for the two companies as well as consolidated totals for 2018
Sales150,000120,000---270,000Cost of goods sold100,00080,000---180,000Operating expenses20,00015,000---35,000Net income30,00025,000---55,000
Elimination entry in respect of inventories: (120,000 × 25%)30,000-30,000-Consolidated net income for 201855,000As we see above that consolidated net income for 2018 is $55,000.
The consolidation process eliminated intra-entity transactions such as the inventory transfers.
Since the inventory had not been sold by the end of 2018, eliminating the intra-entity sale decreased the consolidated cost of goods sold and consolidated sales by $30,000 which resulted in a $55,000 consolidated net income. Therefore, the answer is, the consolidated net income for 2018 is $55,000.
To know more about Company visit :
https://brainly.com/question/30532251
#SPJ11
Content Area A $280,000 bond was redeemed at 98 when the carrying amount of the bond was $273,000. The entry to record the redemption would include a:
a.loss on bond redemption of $1,400.
b.gain on bond redemption of $1,400.
c.loss on bond redemption of $7,000.
d.gain on bond redemption of $7,000.
The entry to record the redemption would include option A) loss on bond redemption of $1,400.
The calculation to the question is as follows:
The carrying amount of the bond is $273,000 which is less than the face value of the bond which is $280,000.
The bond has been redeemed at 98 which means that it has been redeemed at
$274,400 ($280,000*98%)
but the carrying amount of the bond is less than the redemption value and thus
there is a loss on bond redemption.
This loss is calculated as follows:
Redemption value $274,400
Carrying amount $273,000
Loss on bond redemption $1,400
Therefore, the entry to record the redemption would include a loss on bond redemption of $1,400. Option (a) is correct.
To know more about redemption visit :
brainly.com/question/23875796
#SPJ11
3. Describe how purchasing becomes aware of purchase requirements. (List at least three)
4. What is the difference between a purchase order and a blanket purchase order? What are the advantages of using blanket purchase orders?
3. Describe how purchasing becomes aware of purchase requirements. (List at least three)Purchasing becomes aware of purchase requirements in the following ways:Requisition forms - Request forms are sent to the buying department from various departments of the organization.
These forms are scrutinized by the buying department to evaluate whether the request made is real and necessary. Invoices - Buying departments check the invoices received from suppliers. They will discover which goods are being used regularly and those that are out of stock. Inventory reports - Stock reports are examined to identify any shortfalls in inventory levels and items that need to be replenished.4. What is the difference between a purchase order and a blanket purchase order.
A purchase order (PO) is a commercial document issued by the buyer to the seller. A blanket purchase order, on the other hand, is a long-term agreement between a buyer and a supplier that allows for multiple delivery dates over a set period of time, usually for items that are frequently reordered.Blanket purchase orders can help to keep your inventory stocked with the items you need without having to place an order each time. Instead, the vendor will only charge you for the items that have been delivered.
To know more about Purchase visit:-
https://brainly.com/question/31724261
#SPJ11
