Answer:
Each Item Cost 11.6666667
Explanation:
35.00 / 3 = 11.6666667
So each item cost about 11.66 or 11.67
On January 1, 2011, G Corp. granted stock options to key employees for the purchase of 80,000 shares of the company's common stock at $25 per share. The options are intended to compensate employees for the next two years. The options are exercisable within a four-year period beginning January 1, 2013, by the grantees still in the employ of the company. No options were terminated during 2011, but the company does have an experience of 20% forfeitures over the life of the stock options. The market price of the common stock was $31 per share at the date of the grant. G Corp. used the Binomial pricing model and estimated the fair value of each of the options at $10. What amount should G charge to compensation expense for the year ended December 31, 2011
Answer:
The amount should G charge to compensation expense for the year ended December 31, 2011 is $320,000
Explanation:
In order to calculate the amount should G charge to compensation expense for the year ended December 31, 2011 we would have to calculate the following formula:
amount should G charge to compensation expense for the year ended December 31, 2011=Total compensation/2
Note: company does have an experience of 20% forfeitures over the life of the stock options, therefore, 100%-20%=80%
Total compensation= 80,000 options × $10 × 80%
Total compensation= $640,000
amount should G charge to compensation expense for the year ended December 31, 2011=$640,000/2
amount should G charge to compensation expense for the year ended December 31, 2011=$320,000
Dinklage Corp. has 9 million shares of common stock outstanding. The current share price is $69, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $70 million, a coupon rate of 6 percent, and sells for 94 percent of par. The second issue has a face value of $55 million, a coupon rate of 5 percent, and sells for 106 percent of par. The first issue matures in 24 years, the second in 9 years.Suppose the most recent dividend was $4.25 and the dividend growth rate is 4.4 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 25 percent. What is the company’s WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
10.83%
Explanation:
The simplest way to determine the if we use the Gordon growth model for determining the company's stock price:
stock price = [dividend x (1 + growth rate)] / (WACC - growth rate)
dividend = $4.25g = 4.4%stock price = $69WACC - g = [dividend x (1 + g] / price
WACC = {[dividend x (1 + g] / price} + g
WACC = {[$4.25 x (1 + 4.4%] / $69} + 4.4% = 0.1083 or 10.83%
Four employees received feedback from their managers. Jose was told what he did wrong and was given a warning. Jolette was told that she has been too shy in team meetings and is not speaking enough. Richard was told that his unique skill of analysis has been very valuable to the team. Gloria was told about some errors she made on the reports the team produced. Who will most likely feel highly engaged and be more productive?
Answer:
Richard
Explanation:
In simple words, Among all the employees in the organisation only Richard got the appreciation for the work he is performing. Such appreciation would work as an incentive for Richard to perform his duty with more effectiveness in the future.
Positive comments from the employer always works as a motivation to the employees and results in positive reinforcement of such employee which further results in better results.
Bramble Company purchased equipment on January 1, 2018 at a total invoice cost of $347000; additional costs of $5000 for freight and $32000 for installation were incurred. The equipment has an estimated salvage value of $11000 and an estimated useful life of five years. The amount of accumulated depreciation at December 31, 2019 if the straight-line method of depreciation is used is:__________
a. $153600.
b. $136400.
c. $134400.
d. $149200.
Answer:
d. $149200.
Explanation:
Depreciation is a method used in expensing the cost of an asset.
Deprecation expense using the straight line method = (Cost of asset - Salvage value) / useful life
Cost of asset = $347,000 + $5,000 + $32,000 = $384,000
( $384,000 - $11,000) / 5 = $74,600
Deprecation expense each year would be $74,600.
Accumulated depreciation in 2019 would be the sum of deprecation expense in 2018 and 2019
$74,600 × 2 = $149,200
I hope my answer helps you
Carlos is a 25% owner of CEBJ Builders, a company that specializes in residential construction. The other 75% of CEBJ is owned by his three brothers. During the year, Carlos spends 1,800 hours managing the operations of CEBJ. He also is the 100% owner of four rental properties and spends 125 hours a year maintaining the properties, more than any other individual. During the current year, the four properties generate a loss of $18,500. His adjusted gross income before considering the rental loss is $118,000.
What amount of the loss can Carlos deduct from the current year?
Answer:
$99,500
Explanation:
Adjusted gross income before considering the rental loss $118,000.
Less generated a loss of $18,500
Adjusted gross income $99,500
Carlos qualifies under the real estate professional exception due to the fact that he spends more than 50% of his personal service time in real property trade and the amount of time spent in real property trade is higher than 750 hours, he is as well the sole owner and spends more than 100hours.
Therefore the rental activity is not considered passive and he is allowed to offset the $18,500 loss against his active and portfolio income which is why Carlos'sadjusted gross income after considering the loss is $99,500 ($118,000 -$18,500)
Calculate the contribution to total performance from currency, country, and stock selection for the manager in the example below. All exchange rates are expressed as units of foreign currency that can be purchased with 1 U.S. dollar. (Do not round intermediate calculations. Round your answers to 2 decimal places. Input all amounts as positive values.) EAFE Weight Return on Equity Index E1/E0 Manager's Weight Manager's Return Europe 0.2 11 % 1.2 0.32 10 % Australasia 0.4 18 0.7 0.4 22 Far East 0.4 16 1.4 0.28 22
Answer:
Check the explanation
Explanation:
Currency selection: EAFE/ Manager weight × Currency appreciation(E1/E0 -1)
EAFE: [0.50×(1.1-1)] + [0.20 × (1.2-1)] + [0.30 × (1.3-1)] = 18.0%
Manager: [0.40×(1.1-1)] + [0.55 × (1.2-1)] + [0.05 × (1.3-1)]= 16.5%
Loss of 1.5% relative to EAFE
Country selection:
EAFE/ Manager weight × Return on Equity Index
EAFE: 0.5×12% + 0.2 × 16% + 0.30 × 17% = 14.3%
Manager: 0.4×12% + 0.55 × 16% + 0.05 × 17% = 14.45%
Loss of 0.15% relative to Manager
stock selection : (Manager’s return - Return on Equity Index) × Manager weight
[ (14% - 12%) × 0.4] + [ (16% - 16%) × 0.55] + [(16% - 17%) × 0.05] = -7.5%
Loss of 7.5% relative to EAFE
Suppose a hypothetical economy is currently in a situation of deficient aggregate demand of $64 billion. Four economists agree that expansionary fiscal policy can increase total spending and move the economy out of recession, but they are debating which type of expansionary policy should be used. Economist A believes that the government spending multiplier is 8 and the tax multiplier is 2. Economist B believes that the government spending multiplier is 4 and the tax multiplier is 8. Compute the amount the government would have to increase spending to close the output gap according to each economist's belief. Then, for each scenario, compute the size of the tax cut that would achieve this same effect. Spending Multiplier Tax Multiplier Policy Options for Closing Output Gap Increase in Spending Tax Cut (Billions of dollars) (Billions of dollars) Economist A 8 2 Economist B 4 8
Answer:
Government needs to fill gap of $64 billions
for economist A
Tax multipler is 2 so to fill a output gap of 64 billions, cut taxes by 64/ 2 = 32 billion
tax have to cut by $32 billions
govt spending multiplier is 8, so spendinh has to increase by 64/8=$8 billions.
for economist B
Tax multipler is 8 so to fill a output gap of 64 billions, cut taxes by 64/ 8= 8 billion
tax have to cut by $8 billions
govt spending multiplier is 4, so spending has to increase by 64/4=$16 billions.
c. This means that Economist C likely believes that:
- Tax cuts induce investment spending and improve workers incentives.This is because cutting the taxes gives an incentive to the workers to work more.
d. A rise in government spending completely crowds out private sector spending, because increased govt spending increases the interest rate, hence private spending is crowded out.
Refer to the following selected financial information from McCormick, LLC. Compute the company's days' sales in inventory for Year 2. (Use 365 days a year.) Year 2 Year 1 Cash $ 38,900 $ 33,650 Short-term investments 104,000 67,000 Accounts receivable, net 92,500 86,500 Merchandise inventory 128,000 132,000 Prepaid expenses 13,500 11,100 Plant assets 395,000 345,000 Accounts payable 106,400 114,800 Net sales 718,000 683,000 Cost of goods sold 397,000 382,000
Answer:
47.0 days
Explanation:
As per the given question the solution of company's days' sales in inventory is provided below:-
Company's days sales uncollected for year 2 = Total number of days in a year × Accounts receivables ÷ Net sales
= 365 × $92,500 ÷ $718,000
= 365 × 0.1289
= 47.0 days
So, we have calculated the Company's days sales uncollected for year 2 by putting the values into the formula.
Langley Company reported net income for 2022 in the amount of $460,000. The company's financial statements also included the following: Increase in accounts receivable$77,000 Decrease in inventory 62,000 Increase in accounts payable 250,000 Depreciation expense 107,000 Gain on sale of land 147,000 What is net cash provided by operating activities under the indirect method
Answer:
$655,000
Explanation:
Cash flow from operating activities involved all the cash flows related to the operations of the company like sales , purchases, receivable, payable etc.
Net Cash flow is the net of receipts and Payment.
Following are the operating cash flows.
Cash flows from operating activities
Net Income $460,000
Add: Non cash Expense Adjustments:
Depreciation $107,000
Change in Working Capital:
Increase in Account receivable ($77,000)
Decrease in Inventory $62,000
Increase in Account payable $250,000
Less: Net Change in WC $235,000
Other Adjustments
Gain on sale of Land ($147,000)
Net Operating Cash flow $655,000
Depreciation is a non cash expense deducted from the revenue to calculate net income. Now it needs to be added back.
Answer:
The net cash provided by operating activities under the indirect method is $655,000.
Explanation:
Langley Company
Statement of cash flows (extract)
Net income $460,000
Add: Depreciation expense 107,000
Less: Gain on sale of land (147,000)
Increase in accounts receivable (77,000)
Decrease in inventory 62,000
Increase in accounts payable 250,000
Net cash provided by operating activities $655,000
Extreme Builders constructs houses. The standard labor rate is $25 per hour and the standard number of hours is 15,000 hours per home. During the year, it constructed 12 homes using 18,000 labor hours per home and a rate of $28 per hour. Calculate the Extreme Builders' labor rate variance. a.$648,000 F b.$540,000 F c.$648,000 U d.$540,000 U
Answer:
Direct labor rate variance= $648,000 unfavorable
Explanation:
Giving the following information:
The standard labor rate is $25 per hour. During the year, it constructed 12 homes using 18,000 labor hours per home and a rate of $28 per hour.
To calculate the direct labor rate variance, we need to use the following formula:
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (25 - 28)*216,000
Direct labor rate variance= $648,000 unfavorable
Selected information from Frosty Freeze Corporation's accounting records and financial statements for 2022 is as follows ($ in millions): Cash paid to acquire machinery$34 Reacquired Peridot common stock 54 Proceeds from sale of land 93 Gain from the sale of land 54 Investment revenue received 73 Cash paid to acquire office equipment 87 In its statement of cash flows, Frosty Freeze should report net cash outflows from investing activities of: Multiple Choice $101 million. $28 million. $80 million. $33 million.
Answer:
$45 million
Explanation:
The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.
The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.
The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.
An increase in assets other than cash is an outflow of cash while an increase in liabilities is an inflow of cash.
Hence, the net cash outflows from investing activities (in $'million)
= -$34 + $93 + $73 - $87
= $45
The Essex Company found that an average of 10 days elapses between when customer payments are received and the deposited funds clear the customer's bank and become usable by the firm. Essex's annual sales are $240 million. (Assume 365 days per year when converting from annual data to daily data or vice versa.) What is the increase in Essex's average cash balance assuming that it can reduce the time required to process customer payments by 3 days through more efficient payment processing methods
Answer:
$1,972,602.74
Explanation:
According to the scenario, computation of the given data are as follow:-
Increase in Essex’s Average Cash Balance = (Annual Sales ÷ Days Per Year) × Required Process Customer by Days
= (240,000,000 ÷ 365) × 3
= 657,534.25 × 3
= $1,972,602.74
According to the analysis, Increase in Essex’s average cash balance is $1,972,602.74
The following information will be used for 2 questions on this exam: Charlotte Corporation's management keeps track of the time it takes to process orders. During the most recent month, the following average times were recorded per order: Time spent between receipt of order and start of production 3.7 days Time spent ensuring quality levels 0.2 days Time spent working on the product 1.3 days Time spent transporting the product between work stations 0.8 days Time spent waiting to be worked on in the factory 6.9 days What is the throughput time?
Answer:
6.00 days
Explanation:
data provided
Inspection time = 3.7 days
Process time = 0.2 days
Move time = 1.3 days
Queue time = 0.8 days
The calculation of throughput time is given below:-
Throughput time = Inspection time + Process time + Move time + Queue time
= 3.7 days + 0.2 days + 1.3 days + 0.8 days
= 6.00 days
Here, we added the inspection time, process time , move time and queue time to reach at throughput time and we ignore the time spent waiting to be worked on in the factory as it is not relevant.
Leach Inc. experienced the following events for the first two years of its operations:
Year 1:
1. Issued $10,000 of common stock for cash.
2. Provided $70,000 of services on account.
3. Provided $33,000 of services and received cash.
4. Collected $37,000 cash from accounts receivable.
5. Paid $12,000 of salaries expense for the year.
6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 9 percent of the ending accounts receivable balance will be uncollectible.
Year 2:
1. Wrote off an uncollectible account for $680.
2. Provided $90,000 of services on account.
3. Provided $20,000 of services and collected cash.
4. Collected $72,000 cash from accounts receivable.
5. Paid $26,000 of salaries expense for the year.
6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 9 percent of the ending accounts receivable balance will be uncollectible.
Required:
a. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year1 .
b. Organize the transaction data in accounts under an accounting equation.
Answer:
Explanation:
1 events in general journal form and post them to Taccounts.(If no entry is required for a transaction/event, select "No journalentry required" in the first account field.)NoTransactionGeneral Journal Debit CreditA1 Cash ............10,000 Common stock.
........... 10,000 B2A ccounts receivable ..............78,000. Service revenue...........78,000 C3. Cash ............36,000. Service revenue ..........
36,000 D4 Cash ............69,000 Accounts receivable.............69,000 E5 Salaries expense...............38,000 Cash.............38,000 F6 Uncollectible accounts expense .........450. Allowance for doubtful accounts .....450 G7 Service revenue............114,000 Retained earnings..........114,000 H8Retained earnings............38,450 Uncollectible accounts expense............450 Salaries expense.......38,000
On November 27, the board of directors of Armstrong Company declared a $.50 per share dividend. The dividend is payable to shareholders of record on December 7 on December 24. Armstrong has 25,500 shares of $1 par common stock outstanding at November 27. Journalize the entries needed on the declaration and payment dates. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Answer:
On November 27
Debit Retained earnings $12,750
Credit Dividend payable $12,750
(To record the dividend declared)
On December 24
Debit Dividend payable $12,750
Credit Cash $12,750
(To record dividend paid)
Explanation:
Dividends on gains on shares bought by the shareholders. They arise due to appreciation in share price and improvement in company's net income.The dividend payable was calculated as $.5 x 25,500 shares = $12,750.Dividends are usually paid out of retained earnings.The dividend payable account is debited when payment is to be made.On January 1, Gemstone Company obtained a $165,000, 10-year, 7% installment note from Guarantee Bank. Thenote requires annual payments of $23,492, with the first payment occurring on the last day of the fiscal year. The firstpayment consists of interest of $11,550 and principal repayment of $11,942. The journal entry to record the issuance of the installment note for cash on January 1 would include a:_____
Answer:
Credit to notes payable for $165000
Explanation:
Journal entries for issuance of Note Payable :
Cash Account ..... Debit $165000
7% Note payable Accounts .... Credit $165000
Note:
Note payable is a liability so it is credited as on date of issuance.
The general fund of the Town of Dean levied property taxes of $3,000,000 for the fiscal year beginning on January 1, 20X8. It was estimated that 1% of the levy would be uncollectible. During the period January 1, 20X8, through December 31, 20X8, $2,960,000 of the property tax levy was collected. At December 31, 20X8, Dean estimated that $10,000 of property taxes levied in 20X8 would be collected during the first 60 days of 20X9. What amount of property tax revenue should be reported by the general fund for the year ended December 31, 20X8?
Answer: $2,970,000
Explanation:
According to US tax laws, property taxes can be recognised for 60 days into the next financial period because it is assumed that within this period, the taxes can still cover expenses related to the period that it is from.
Therefore, if Property taxes are paid within the first 60 days in 20X9 then the Town of Dean should recognise those taxes paid.
Those taxes amount to $10,000 so therefore, the amount to be reported in the fund is,
= 2,960,000 + 10,000
= $2,970,000
$2,970,000 is amount of property tax revenue that should be reported by the general fund for the year ended December 31, 20X8.
Selected information from Jacklyn Hyde Corporation's accounting records and financial statements for 2021 is as follows ($ in millions): Cash paid to retire notes $ 128 Common shares acquired for treasury 188 Proceeds from issuance of preferred stock 286 Proceeds from issuance of subordinated bonds 308 Cash dividends paid on preferred stock 94 Cash interest paid to bondholders 124 In its statement of cash flows, Jacklyn Hyde should report net cash inflows from financing activities of:
Answer:
$244 million
Explanation:
The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.
The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.
The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.
An increase in assets other than cash is an outflow while an increase in liabilities is an inflow.
Hence net cash inflows from financing activities ($ in millions)
= -$128 - $128 + $286 + $308 - $94
= $244
The interest to bondholders is considered in the operating activities section.
Garcia Ltd. is trying to estimate its cost of common equity, and it has the following information. The firm has a beta of 0.90, the before-tax cost of the firm's debt is 7.75%, and the firm estimates that the risk-free rate is 5% while the current market return is 13%. The firm pays dividends annually and expects dividends to grow at a constant rate of 5% indefinitely. The most recent dividend per share, paid yesterday, is $2.00. Currently, the firm's stock sells for $35.00 per share, but if the firm issues new shares, it will net $33.15 per share. Finally, the firm has a marginal tax rate of 34%. The cost of new common stock is ___________.
Answer:
Cost of common stock = 11.33%
Explanation:
The cost of common stock can be determined using the dividend valuation model.
According to the dividend valuation, the value of a stock is the present value of expected future dividends discounted at the required rate of return.
The model can me modified to determined the cost of equity having flotation cost as follows:
Cost of equity = D(1+r )/P(1-f) + g
d- dividend, p- price of stock , f - flotation cost , - g- growth rate
Cost of common stock =
D- 2.00, g- 5%, Price net flotation cost = $33.15
Ke = 2.00 × (1.05)/33.15) + 0.05 × 100
= 11.33%
Cost of common stock = 11.33%
Brainliest for anyone if they get this CORRECT.
Answer:
UR FACE
Explanation:
magic
Answer:
6
Explanation:
Find the percentage for 24% of 25.
That's how I did mine.
Sweet Acacia uses LIFO inventory costing. At January 1, 2020, inventory was $334,640 at both cost and market value. At December 31, 2020, the inventory was $425,820 at cost and $400,440 at market value. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method and (b) loss method. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
January 1, 2020, inventory was $334,640 at both cost and market value.
December 31, 2020, the inventory was $425,820 at cost and $400,440 at market value.
When using lower of cost or market value, we must record our inventory at whichever is lower. The total loss of inventory value = $425,820 - $400,440 = $25,380.
a) the cost-of-goods-sold method
December 31, adjustments to record loss on inventory's market value.
Dr Cost of goods sold 25,380
Cr Inventory* 25,380
b) loss method
December 31, adjustments to record loss on inventory's market value.
Dr Loss due to decline of inventory to market value 25,380
Cr Inventory* 25,380
*Depending on what account you are told to use (instead of inventory account) you might be required to use the Allowance to reduce inventory to market value account.
A company sold $12,000 worth of bicycles with an extended warranty. The company’s experience is that warranty expense averages 2% of sales. The current period’s entry to record the warranty expense is: Multiple Choice Debit Warranty Expense $240; credit Cash $240. Debit Prepaid Warranties $240; credit Warranty Expense $240. Debit Estimated Warranty Liability $240; credit Cash $240. Debit Sales Allowances $240; credit Estimated Warranty Liability $240. Debit Warranty Expense $240; credit Estimated Warranty Liability $240.
Answer:
Debit Warranty Expense $240; credit Estimated Warranty Liability $240.
Explanation:
The Journal entry is shown below:-
Warranty expenses Dr, $240
To Estimated warranty liability $240
(Being warranty expense is recorded)
When the company sells warranty items, the warranty expenses & warranty liability will only be considered in the selling year.
Working note:-
Warranty expenses & Estimated warranty liability to be recognize = Sales × Estimated percentage of warranty work
= $12,000 × 2%
= $240
The current period’s entry to record the warranty expense is Debit Warranty Expense $240; credit Estimated Warranty Liability $240.
The Journal entry is as below:-
Warranty expenses Dr, $240 (2% of $12,000)
To Estimated warranty liability $240
(Being warranty expense is recorded)
Therefore we can conclude that The current period’s entry to record the warranty expense is Debit Warranty Expense $240; credit Estimated Warranty Liability $240.
Learn more: brainly.com/question/6201432
Blue Sky Company’s 12/31/15 balance sheet reports assets of $6,000,000 and liabilities of $2,400,000. All of Blue Sky’s assets’ book values approximate their fair value, except for land, which has a fair value that is $360,000 greater than its book value. On 12/31/15, Horace Wimp Corporation paid $6,120,000 to acquire Blue Sky. What amount of goodwill should Horace Wimp record as a result of this purchase?
Answer:
$2,160,000
Explanation:
Goodwill is the amount of excess consideration payment over net asset value of acquiring company. It is the net value of consideration payment and Fair value of net assets.
To calculate goodwill first we need to determine fair value of assets and Liabilities.
Total Fair value of Assets = $6,000,000 + $360,000 = $6,360,000
Liabilities = $2,400,000
Net Asset value = Assets - Liability = $6,360,000 - $2,400,000 = $3,960,000
Goodwill = Consideration - Net Asset Value = $6,120,000 - $3,960,000 = $2,160,000
Vital Industries manufactured 1,200 units of its product Huge in the month of April. It incurred a total cost of $120,000 during the month. Out of this $120,000, $45,000 was the cost of direct materials used in the product and the rest was incurred because of the conversion cost involved in the process. Ryan had no opening or closing inventory. What will be the total cost per unit of the product, assuming conversion costs contained $10,000 of indirect labor
Answer:
$100
Explanation:
In the question, we are given the following:
Total cost = $120,000
Units produced = 1,200 units
Therefore, we have:
Total cost per unit = $120,000 / 1,200 = $100
Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August. The direct materials requirement per unit is 2 ounces (oz.). The company requires to have safety stock of direct materials on hand at the end of each month to complete 20% of the units of budgeted production in the following month. There was 3,160 ounces of direct material in inventory at the start of July. The total ounces of direct materials to be purchased in July is:
Answer:
Purchases= 15,880 ounces
Explanation:
Giving the following information:
Production:
July= 7,900
August= 8,100
The direct materials required per unit is 2 ounces (oz.).
Ending inventory= 20% of the units of budgeted production in the following month.
There were 3,160 ounces of direct material in inventory at the start of July.
To calculate the direct material purchase required, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Purchases= 7,900*2 + (8,100*2)*0.2 - 3,160
Purchases= 15,880 ounces
The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 1 $ 59,000 $ 5,000 2 $ 9,000 $ 10,000 3 $ 20,000 4 $ 21,000 5 $ 24,000 6 $ 22,000 7 $ 20,000 8 $ 18,000 9 $ 17,000 10 $ 17,000 Required: 1. Determine the payback period of the investment. 2. Would the payback period be affected if the cash inflow in the last year were several times as large
Answer:
4.5 years
No
Explanation:
The Payback period calculates the amount of time it takes to recover the amounts invested in a project from its cumulative cash flows.
Total investments = $-59,000 - $9,000 = $-68,000
In the first year: $-68,000 + $5,000 = $-63,000 is recovered
In the 2nd year: $-63,000 + $ 10,000 = $-53,000 is recovered
In the 3rd year: $-53,000 + $ 20,000 = $-33,000 is recovered
In the 4th year $-33,000 + 21,000 = $-12,000
In the 5th year $-12000 + $24,000 = $12,000
The amount invested is recovered between the 4th and 5th year
4 years + $-12000 / $24,000 = 4.5years
The Payback period would not be affected if the cash inflow in the last year were several times as large because the cash flow would have been recovered by the 5tj year.
I hope my answer helps you
Answer:
Explanation:
Year Investment Cash Inflow Accumulate Cash Inflow
1 $59,000 $5,000 $5000
2 $9,000 $10,000 $15000
3 $20,000 $35000
4 $21,000 $56000
5 $24,000 $12000
6 $22,000 $34000
7 $20,000 $54000
8 $18,000 $72000
9 $17,000 $89000
10 $17,000 $106000
Pay back period ⇒ 4.5year ⇒ 68000/68000 + 12000/24000
⇒ 4.5years
2. Dexrease payback period
Dan Bumblauskas is the owner of a small Iowa company that produces electric knives used to cut fabric. The annual demand is for 10 comma 500 knives, and Dan produces the knives in batches. On average, Dan can produce 190 knives per day; during the production process, demand has been about 70 knives per day. The cost to set up the production process is $85, and it costs Dan $1.10 to carry a knife for 1 year. How many knives should Dan produce in each batch?
Answer:
1,012.36 knives produced in each month
Explanation:
Data provided in the question
Annual demand = 10,500
Ordering cost = $85
Holding cost = $1.10
Daily demand = 70 knives per day
Production knives per day = 190 knives
Based on the given information, we need to apply the formula which is shown below:[tex]Economic\ order\ quantity = \sqrt{\frac{2\times annual\ demand \times ordering\ cost}{holding\ cost} \times 1 - \frac{daily\ demand}{production}[/tex]
[tex]Economic\ order\ quantity = \sqrt{\frac{2\times 10,500 \times\$85}{\$1.10} \times 1 - \frac{70}{190}[/tex]
= 1,012.36 knives produced in each month
We simply applied the above formula to find out the knives produced in each batch
Rebel Sound Inc. produced 30,000 audio devices last month. Rebel started the month with $10,000 worth of inventory in Finished Goods. The company incurred $15,000 of various utility and rent charges on their factory, paid $50,000 for raw materials to use in production, and paid employees $60,000 in wages.
During the month, inventory costing $120,000 was completed and transferred to the Finished Goods Inventory. At the end of the month, Rebel had $5,000 of Inventory in Finished Goods, $6,000 in Materials Inventory, and $24,000 still in Work in Process.
Required:
1. What was Rebel Sound Inc Cost of Goods Manufactured for the month?
Answer:
Cost of goods manufactured is $ 101,000 for the month
Explanation:
Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.
Cost of Goods Manufactured:
$
Work in process inventory, beginning $ -
Direct materials:
Direct Material Used $ 60,000
Direct labor $ 15,000
Factory overhead Applied $ 50,000
Total manufacturing costs $125,000
Total work in process during period $125,000
Work in process inventory, ending $ -24,000
Cost of goods manufactured $ 101,000
While Mary Corens was a student at the University of Tennessee, she borrowed $9,000 in student loans at an annual interest rate of 9%. If Mary repays $1,700 per year, then how long (to the nearest year) will it take her to repay the loan? Do not round intermediate calculations. Round your answer to the nearest whole number.
Answer:
The time required to repay the loan is 8 years.
Explanation:
The loan amount that the student borrowed = $9000
Annual interest rate = 9%
Repayment amount per year or annuity amount = $1700 per year
Use the below formula to calculate the number of years to repay the loan amount.
A = annuity amount
r = interest rate
n = number of years
PVF = present value of annuity
[tex]\rm PVF = \frac{A\left [1-\left ( 1+r \right )^{-n} \right ]}{r} \\[/tex]
[tex]9000 = \frac{1700\left [1-\left ( 1+ 0.09 \right )^{-n} \right ]}{0.09} \\[/tex]
[tex]9000 = 18888.9(1-1.09^{-n}) \\[/tex]
[tex]n = 7.51 \ years \ or \ 8 \ years.[/tex]
So, the time taken to repay the loan amount is 8 years.
A company's income statement showed the following: net income, $117,000; depreciation expense, $31,500; and gain on sale of plant assets, $5,500. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $9,700; merchandise inventory increased $19,500; prepaid expenses increased $6,500; accounts payable increased $3,700. Calculate the net cash provided or used by operating activities. Multiple Choice $143,400. $141,400. $148,200. $130,400. $169,400.
Answer:
$130,400
Explanation:
The computation of net cash provided or used by operating activities is shown below:-
Net cash provided or used by operating activities
Net income $117,000
Depreciation expense $31,500
Gain on sale of plant assets ($5,500)
Accounts receivable decreased $9,700
Increase inventory ($19,500)
Prepaid expenses increased ($6,500)
Increase account payable $3,700
Net cash flow from
operating activities $130,400
Therefore the Net cash flow from operating activities is $130,400
