Answer:
B it occurs where the market demand and supply curves intersect.
Explanation:
The equilibrium price is the current market price, as determined by the forces of demand and supply. It reflects the price at which buyers and sellers agree for a specified quantity of a product in a given time.
In a graph containing both the demand and supply curve, the equilibrium price is the two curves' intersection. At this price, there will be excess or short supply in the market.
need help with a business question
Answer:
D
Explanation:
I'm not positive, however it does add up to a realistic value.
Answer:
I think C
Explanation:
Use the following information for Exercises 8-9 below. (Static)[The following information applies to the questions displayed below.]
a. M&R Company provided $2,000 in services to customers in December, which are not yet recorded. Those customers are expected to pay the company in January following the company’s year-end.
b. Wage expenses of $1,000 have been incurred but are not paid as of December 31.
c. M&R Company has a $5,000 bank loan and has incurred (but not recorded) 8% interest expense of $400 for the year ended December 31. The company will pay the $400 interest in cash on January 2 following the company’s year-end.
d. M&R Company hired a firm that provided lawn services during December for $500.
e. M&R will pay for December lawn services on January 15 following the company’s year-end.M&R Company has earned $200 in interest revenue from investments for the year ended December 31. The interest revenue will be received on January 15 following the company’s year-end.
f. Salary expenses of $900 have been earned by supervisors but not paid as of December 31.
Answer:
The requirements are missing, so I looked for similar questions. You should make any necessary adjusting entries on the accounting equation. Since there is not enough room here, I used an excel spreadsheet.
the pros and cons of using a credit card, checking account, and debit card.
Credit card and debit card
PROS
You have digital moneyYou have digital moneyYou can buy things onlineCONS
You have to go to the bank to take money outSomeone can hack your card and take your moneyThe December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $1,460,000, $152,000 in the common stock account, and $2,770,000 in the additional paid-in surplus account. The December 31, 2016, balance sheet showed long-term debt of $1,700,000, $162,000 in the common stock account, and $3,070,000 in the additional paid-in surplus account. The 2016 income statement showed an interest expense of $100,000 and the company paid out $157,000 in cash dividends during 2016. The firm’s net capital spending for 2016 was $1,080,000, and the firm reduced its net working capital investment by $137,000. What was the firm's 2016 operating cash flow, or OCF? (A negative answer should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
1. What was the cash flow to creditors during 2014? Cash flow to creditors:
2. What was the firm’s cash flow to stockholders during 2014? Cash flow to stockholders $
3. What was the firm’s cash flow from assets during 2014? Cash flow from assets $
4. What was the firm’s operating cash flow during 2014? Operating cash flow $
Answer:
Follows are the solution to this question:
Explanation:
Formula:
[tex]\text{Asset cash flow = creditors cash flow + equity cash flow}\\\\ \text{creditors cash flow = payment of interest-net new loans}\\\\ \text{Cash flow to lenders = interest charged}-( LTD_{end}-LTD_{beg}) \\[/tex]
[tex]\text{Cash flow} =100000 -(1700000- 1460000) = - \$ 140,000 \\[/tex]
[tex]\text{Shareholder cash flow = paid dividends-net new shares} \\\\\text{Cash flow = interest paid - (Common} + APIS_{end})- \text{(Common +} APIS_{beg}))\\\\[/tex]
[tex]\text{Cash flow to the inventory holders}= 157000 -(162000 +3070000))-(152000+2770000) = - \$ 5997000[/tex]
[tex]\text{Asset cash flow = - \$ 6,137,000}[/tex]
9. Problems and Applications Q9 Suppose that a borrower and a lender agree on the nominal interest rate to be paid on a loan. Then inflation turns out to be lower than they both expected. True or False: The real interest rate on this loan is higher than expected. True False The lender from this unexpected lower inflation, and the borrower under these circumstances. Inflation during the 1970s was much higher than most people had expected when the decade began. Homeowners who obtained fixed-rate mortgages during the 1960s the unexpected higher inflation (with regard to their mortgages), and the banks that made the mortgage loans . g
Answer:
The real interest rate on this loan is higher than expected. ⇒ TRUE
The lender from this unexpected lower inflation, and the borrower under these circumstances. ⇒ THIS QUESTION IS INCOMPLETE, THE LENDER WILL BENEFIT (HIGHER REAL INTEREST RATE) WHILE THE BORROWER LOSES.
Inflation during the 1970s INFLATION was much higher than most people had expected when the decade began. Homeowners who obtained fixed-rate mortgages during the 1960s BENEFITED FROM the unexpected higher inflation (with regard to their mortgages), and the banks that made the mortgage loans LOST.
Explanation:
real interest rate = nominal interest rate - inflation rate
If nominal interest rate remains stable, but inflation rate decreases, then the real interest rate will increase. On the other hand, if nominal interest rate remains stable but the inflation rate increases, then real interest rate will decrease (and sometimes will even turn negative).
Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are red, $20; white, $35; and blue, $65. The per unit variable costs to manufacture and sell these products are red, $12; white, $22; and blue, $50. Their sales mix is reflected in a ratio of 5:4:2 (red:white:blue). Annual fixed costs shared by all three products are $250,000. One type of raw material has been used to manufacture all three products. The company has developed a new material of equal quality for less cost. The new material would reduce variable costs per unit as follows: red, by $6; white, by $12; and blue, by $10. However, the new material requires new equipment, which will increase annual fixed costs by $50,000.
Required:
a. Assume if the company continues to use the old material, determine its break-even point in both sales units and sales dollars of each individual product. (Round composite units up to next whole number.)
b. If the company uses the new material, determine its new break-even point in both sales units and sales dollars of each individual product.
c. What insight does this analysis offer management for long term planning?
Answer:
a. break even number in units = $250,000 / $10.0908 = 24,775.04
red units = 24,775.04 x 5/11 = 11,261.38 ≈ 11,262 units
total sales = 11,262 x $20 = $225,240
white units = 24,775.04 x 4/11 = 9,009.11 ≈ 9,010 units
total sales = 9,010 x $35 = $315,350
blue units = 24,775.04 x 2/11 = 4,504.55 ≈ 4,505 units
total sales = 4,505 x $65 = $292,825
total sales = $833,415
b. new break even number in units = $300,000 / $19.4545 = 15,420.60
red units = 15,420.60 x 5/11 = 7,009.36 ≈ 7,010 units
total sales = 7,010 x $20 = $140,200
white units = 15,420.60 x 4/11 = 5,607.49 ≈ 5,608 units
total sales = 5,608 x $35 = $196,280
blue units = 15,420.60 x 2/11 = 2,803.75 ≈ 2,804 units
total sales = 2,804 x $65 = $182,260
total sales = $518,740
c. Management should start using the new material as soon as possible since it doesn't only decrease the break even point, if sales level remain the same, it will increase operating profits.
Explanation:
red's contribution margin = $8
white's contribution margin = $13
blue's contribution margin = $12
sales mix = 5:4:2
weighted contribution margin = ($8 x 5/11) + ($13 x 4/11) + ($12 x 2/11) = $3.6363 + $4.2727 + $2.1818 = $10.0908
new contribution margin:
red's contribution margin = $14
white's contribution margin = $25
blue's contribution margin = $22
sales mix = 5:4:2
weighted contribution margin = ($14 x 5/11) + ($25 x 4/11) + ($22 x 2/11) = $6.3636 + $9.0909 + $4 = $19.4545
The break-even point in both sales units and sales dollars of each individual product is:
Red 11,261.38 units; $225,240White 9,009.11 units; $315,350Blue 4,505 units ; $292,825Break evena. Break even number in units
Weighted contribution margin = ($8 x 5/11) + ($13 x 4/11) + ($12 x 2/11)
Weighted contribution margin = $3.6363 + $4.2727 + $2.1818
Weighted contribution margin = $10.0908
Break even number in units= $250,000 / $10.0908
Break even number in units = 24,775.04
Red
Break-even point sales units= 24,775.04 x 5/11
Break-even point sales units= 11,261.38 units
Break-even point sales dollars = 11,262 x $20
Break-even point sales dollars= $225,240
White
Break-even point sales units= 24,775.04 x 4/11
Break-even point sales units = 9,009.11 units
Break-even point sales dollars = 9,010 x $35
Break-even point sales dollars = $315,350
Blue
Break-even point sales units= 24,775.04 x 2/11
Break-even point sales units= 4,504.55
Break-even point sales units= 4,505 units (Approximately)
Break-even point sales dollars= 4,505 x $65
Break-even point sales dollars= $292,825
b. New break even number in units
Weighted contribution margin = ($14 x 5/11) + ($25 x 4/11) + ($22 x 2/11)
Weighted contribution margin = $6.3636 + $9.0909 + $4
Weighted contribution margin= $19.4545
New break even number in units= $300,000 / $19.4545
New break even number in units= 15,420.60
Red
New break even point in sales units = 15,420.60 x 5/11
New break even point in sales units = 7,009.36 units
New break even point in sales dollars = 7,010 x $20
New break even point in sales dollars= $140,200
White
New break even point in sales units = 15,420.60 x 4/11
New break even point in sales units = 5,607.49 units
New break even point in sales dollars = 5,608 x $35
New break even point in sales dollars= $196,280
Blue
New break even point in sales units = 15,420.60 x 2/11
New break even point in sales units = 2,803.75
New break even point in sales units =2,804 units (Approximately)
New break even point in sales dollars = 2,804 x $65
New break even point in sales dollars = $182,260
c. The insight does that this analysis offer management for long term planning is for that the management should use the new material.
Inconclusion the break-even point in both sales units and sales dollars of each individual product is: Red 11,261.38 units; $225,240.
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X Company had the following inventory balances for 20x1. Inventory Classification January 1, 20x1 December 31, 20x1 Raw material $55,000 $75,000 Work in process 110,000 125,000 Finished goods 0 148,000 During 20x1, the company purchased raw material 259,500 and spent 501,500 for direct labor. Manufacturing overhead costs were as follows: Indirect material $12,000 Indirect labor 22,000 Depreciation on plant and equipment 110,000 Utilities 23,000 Other 42,000 Total $209,000 For the year, sales revenue was $1,215,000 Selling and administrative expenses for the year was $106,000.00 The firm’s tax rate is 33 percent. Round your answers to the nearest dollar. Fill in the blank without $ or comma or period, e.g., 12345 How much net income did X Company report on it's income statement for 20X1?
Answer:
X company would report $215,740 on it's income statement for 20x1
Explanation:
To get the net income that X company will report on it's income statement, we will need to calculate first the cost of goods manufactured , the cost of goods sold and then the net income.
Please find attached detailed calculation of the cost of goods manufactured, cost of goods sold and the net income.
On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 10. Product Inventory Quantity Cost Per Unit Market Value per Unit (Net Realizable Value) Class 1: Model A 300 $140 $125 Model B 500 90 112 Model C 150 60 59 Class 2: Model D 800 120 115 Model E 400 140 145 a. Determine the value of the inventory at the lower of cost or market applied to each item in the inventory. Inventory at the Lower of Cost or Market Product Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value) Cost Market Lower of Cost or Market Model A $ $ $ $ $ Model B Model C Model D Model E Total $ $ $
Answer:
Product Quantity LCM Total
Model A 300 $125 $37,500
Model B 500 $90 $45,00
Model C 150 $59 $8,850
Model D 800 $115 $92,000
Model E 400 $140 $56,000
Explanation:
Product Quantity Cost Per Unit Market Value (NRV)
Class 1:
Model A 300 $140 $125
Model B 500 $90 $112
Model C 150 $60 $59
Class 2:
Model D 800 $120 $115
Model E 400 $140 $145
When a company records inventory at lower of cost or market value, it will record its inventory at whichever price is lower. E.g. if NRV is lower than purchase cost, then inventory is recorded at NRV. If purchase cost is lower than NRV, then inventory will be recorded at purchase cost.
Models B and E should be recorded at purchase cost while models A, C and D should be recorded at NRV.
Product Quantity LCM Total
Class 1:
Model A 300 $125 $37,500
Model B 500 $90 $45,00
Model C 150 $59 $8,850
Class 2:
Model D 800 $115 $92,000
Model E 400 $140 $56,000
Mr. Ahmed wants to set up a new enterprise. Guide about the financial institution that offers, and provides long and medium term finance to large enterprises.
There are several financial institutions that offer long and medium-term finance to large enterprises. It's important to carefully consider the terms and conditions of each option and choose the one that best meets your needs.
When setting up a new enterprise, it's important to understand the various sources of financing available to you. One option is long and medium term financing, which can be obtained from financial institutions that specialize in this area.Some of the financial institutions that offer and provide long and medium-term finance to large enterprises are as follows:
1. Commercial banksCommercial banks provide various types of long and medium-term finance to large enterprises. These include term loans, overdrafts, and lines of credit. These types of financing are usually secured by the assets of the company and may require collateral such as property or inventory. The terms of these loans are typically between three to ten years, and interest rates are determined by the bank's prime rate.
2. Development banksDevelopment banks are financial institutions that are specifically created to provide long-term financing to support economic development. They offer long-term loans for large enterprises and small to medium-sized enterprises (SMEs) at relatively low interest rates and flexible repayment terms. Development banks can also provide technical assistance to businesses, helping them improve their operations and management.
3. Insurance companiesInsurance companies offer long-term financing in the form of annuities and insurance policies. Annuities are typically purchased by individuals looking for a steady income stream in retirement, while insurance policies are purchased by businesses looking for long-term funding. Insurance companies may also invest in large enterprises directly, providing equity financing and other forms of support.
4. Venture capital firmsVenture capital firms invest in start-up companies that have high growth potential. They provide long-term funding in exchange for an ownership stake in the business and often work closely with the company's management team to help them grow and succeed. Venture capital firms typically provide funding in stages, with the first round of funding being the seed round and subsequent rounds being Series A, B, C, and so on.
5. Private equity firmsPrivate equity firms invest in established businesses that are looking to grow or change their business model. They provide long-term financing in exchange for an ownership stake in the business and typically work closely with the company's management team to help them achieve their growth objectives.
Private equity firms may also help companies prepare for an initial public offering (IPO) or sale to another company.
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You are a medical records clerk working in the HCM department of a major hospital in your area. You over hear a co-worker on the phone stating that they have found a phone number and address of a patient and it appears to be a personal call. Explain the laws that may have been violated in the discussion background. Support your answer with evidence.
In the scenario described, it appears that a co-worker may have violated patient privacy laws by accessing and disclosing personal information for personal purposes.
As a medical records clerk, maintaining patient confidentiality and adhering to privacy laws is of utmost importance. The laws that may have been violated in this situation include:
1. Health Insurance Portability and Accountability Act (HIPAA): HIPAA is a federal law in the United States that protects the privacy and security of patients' health information. It prohibits unauthorized access, use, and disclosure of individually identifiable health information. The unauthorized use of a patient's phone number and address for personal reasons without a legitimate work-related purpose would likely violate HIPAA.
2. Confidentiality Laws: Many jurisdictions have laws that protect patient confidentiality and require healthcare professionals to maintain the privacy of patient information. These laws are in place to ensure that patients' personal information is not disclosed without their consent or a legally valid reason. Sharing a patient's phone number and address without a legitimate professional reason could be a breach of these confidentiality laws.
3. Professional Code of Ethics: Healthcare professionals, including medical records clerks, are bound by professional codes of ethics that require them to protect patient privacy and maintain the confidentiality of medical information. Violating these ethical obligations can result in disciplinary action and damage the trust between healthcare providers and patients.
It is important to note that the specific laws and regulations may vary depending on the jurisdiction. However, the general principles of patient privacy and confidentiality remain consistent. It is crucial for healthcare professionals to be aware of and comply with these laws to protect patient privacy and maintain the integrity of the healthcare system.
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See if you can match the design approaches Kate uses to the messages she applied them to.
Click to select each message design approach, then click the blank space for the message it
matches to move it.
"I know you're on deadline, but I also know that the project is very important for all of us. May
I ask you a question about it..."
"We've just experienced three problems with the ABC product. The problems are... I see three
simple solutions, and they are... I'll go ahead and implement these solutions on Thursday
unless I hear otherwise from you before then..."
"Given your announcement that customer service is our #1 priority for the month, I would like
your approval to hire a temp to help Bill this month so he can focus on service enhancements."
"Have you seen this quarter's revenue figures? They're 30 percent higher than last quarter.
Would you like to increase the budget for the XYZ product?"
Select one
Select one
Select one
Select one
The design approaches to the messages as observed are Emotional appeal, Problem-solution approach, Persuasive approach based on shared values, and Data-driven approach.
What are the appropriate matching of the approaches?Matching each message with its corresponding design approach are as follows:
1. "I know you're on deadline, but I also know that the project is very important for all of us. May I ask you a question about it..."
Design approach: Emotional appeal
2. "We've just experienced three problems with the ABC product. The problems are... I see three simple solutions, and they are... I'll go ahead and implement these solutions on Thursday unless I hear otherwise from you before then..."
Design approach: Problem-solution approach
3. "Given your announcement that customer service is our #1 priority for the month, I would like your approval to hire a temp to help Bill this month so he can focus on service enhancements."
Design approach: Persuasive approach based on shared values
4. "Have you seen this quarter's revenue figures? They're 30 percent higher than last quarter. Would you like to increase the budget for the XYZ product?"
Design approach: Data-driven approach
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On January 1, 2020, Sunland Corporation had the following stockholders’ equity accounts.
Common Stock ($24 par value, 65,000 shares issued and outstanding) $1,560,000
Paid-in Capital in Excess of Par—Common Stock 191,000
Retained Earnings 591,000
During the year, the following transactions occurred.
Feb. 1 Declared a $1 cash dividend per share to stockholders of record on February 15, payable March 1.
Mar. 1 Paid the dividend declared in February.
Apr. 1 Announced a 2-for-1 stock split. Prior to the split, the market price per share was $36.
July 1 Declared a 10% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $14 per share.
31 Issued the shares for the stock dividend.
Dec. 1 Declared a $0.30 per share dividend to stockholders of record on December 15, payable January 5, 2021.
31 Determined that net income for the year was $328,000.
Date Account Titles and Explanation Debit Credit
Feb. 1 Cash Dividends 65,000
Dividends Payable 65,000
Mar. 1 Dividends Payable 65,000
Cash 65,000
Apr.1 No Entry
No Entry
July 1 Stock Dividends
Paid-in Capital in Excess of Par-Preferred Stock
Common Stock Dividends Distributable
July 31 Common Stock Dividends Distributable
Common Stock
Dec. 1 Cash Dividends
Dividends Payable
Dec. 31 Income Summary 328,000 328,000
Retained Earnings
(To close net income)
Dec. 31 Retained Earnings
Stock Dividends
(To close stock dividends)
Dec. 31 Retained Earnings
Cash
(To close cash dividends) Debit Credit Balance Common Stock Date Jan. 1 July 31 Explanation Ref Balance Common Stock Dividends Distributable Date Explanation Ref Debit Credit Balance July 1 July 31 Paid-in Capital in Excess of Par-Common Stock Date Explanation Ref Debit Jan. 1 Balance Credit Balance July 1 Retained Earnings Date Jan. 1 Debit Credit Balance Explanation Ref Balance Dec. 31 Net income Dec. 31 Stock dividend Dec. 31 Cash dividend Cash Dividends Explanation Ref Debit Credit Balance Feb. 1 Dec. 1 Dec. 31 Stock Dividends Date Jan. 1 Explanation Ref Debit Credit Balance Dec. 31 SUNLAND CORPORATION Balance Sheet (Partial)
Full question attached
Answer and Explanation:
Answer and explanation attached
Vera Ernst is a licensed dentist. During the first month of the operation of her business, the following events and transactions occurred.
April 1 Invested $22,000 cash in her business.
1 Hired a secretary-receptionist at a salary of $600 per week payable monthly.
2 Paid office rent for the month $1,100.
3 Purchased dental supplies on account from Dazzle Company $4,200.
10 Performed dental services and billed insurance companies $5,000.
11 Received $1,000 cash advance from Leah Mataruka for an implant.
20 Received $2,700 cash for services performed from Michael Santos.
30 Paid secretary-receptionist for the month $2,400.
30 Paid $2,720 to Dazzle for accounts payable due.
Journalize the transactions.
Answer and Explanation:
The Journal entry is shown below:-
1. Cash Dr, $22,000
To Owner's capital $22,000
(Being cash is recorded)
2. No entry is required
3. Rent expenses Dr, $1,100
To Cash $1,100
(Being rent paid is recorded)
4. Supplies Dr, $4,200
To Accounts payable $4,200
(Being supplies is recorded)
5. Accounts receivable Dr, $5,000
To Service revenue $5,000
(being revenue earned but not received is recorded)
6. Cash Dr, $1,000
To Unearned service revenue $1,000
(Being unearned service revenue is recorded)
7. Cash Dr, $2,700
To Service revenue $2,700
(Being service revenue is recorded)
8. Salaries and wage expenses Dr $2,400
To Cash $2,400
(Being wages expenses is recorded)
9. Accounts payable Dr, $2,720
To Cash $2,720
(Being accounts payable is recorded)
You have two job offers, starting November 1st, 2020. At Company A you will have an initial annual salary of $75,000 and a raise of 7% on November 1st of each year thereafter. Here, the 7% raise is computed based on the salary on the date the raise is given. So, on November 1st, 2021 your salary would be $80,250, and then on November 1st, 2022 it would be $85,867.50, and so on. At Corporation B you will have an initial salary of $90,000 and a raise of 2% on November 1st of each year thereafter.
Required:
On November 1st of what year would the salary at Company A be greater than the salary at Corporation B?
Answer:
On November 1, 2024, the salary offered by Company A would be higher than the salary offered by Company B ($98,309.70 > $97,418.89).
Explanation:
Company A Company B
Date Salary Salary
Nov. 1, 2020 $75,000 $90,000
Nov. 1, 2021 $80,250 $91,800
Nov. 1, 2022 $85,867.50 $93,636
Nov. 1, 2023 $91,878.23 $95,508.72
Nov. 1, 2024 $98,309.70 $97,418.89
We can use the future value formula to determine the salaries for any given year:
FV = PV x (1 + r)ⁿ
PV = $75,000
r = 7%
or
PV = $90,000
r = 2%
Vaughn Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $ 22,000 , direct labor $ 13,200 , and manufacturing overhead $ 17,600 . As of January 1, Job 49 had been completed at a cost of $ 99,000 and was part of finished goods inventory. There was a $ 16,500 balance in the Raw Materials Inventory account.
During the month of January, Vaughn Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold during the month. The following additional events occurred during the month.
1. Purchased additional raw materials of $109,800 on account.
2. Incurred factory labor costs of $85,400. Of this amount $19,520 related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows:
Idirect materials $20,740
Indirect labor $24,400
Depreciation expense on equipment $14,640
Other manufacturing overhead costs on account $19,520.
4. Assigned direct materials and direct labor to jobs as follows.
Job No. Direct Materials Direct Labor
50 $12,200 $6,100
51 47,580 30,500
52 36,600 24,400
Required:
Calculate the predetermined overhead rate for 2020, assuming Vaughn Company estimates total manufacturing overhead costs of $ 882,000, direct labor costs of $735,000, and direct labor hours of 21,000 for the year.
Answer:
$1.2
Explanation:
Predetermined overhead rate is the rate that is used to apply estimated overhead to job orders or products.
The predetermined overhead rate for 2020 is calculated as ;
= Estimated total manufacturing overhead costs / Estimated Direct labor cost
= $882,000 / $735,000
= $1.2
Therefore, the predetermined overhead rate for 2020 is $1.2
Consider the types of expenses you would track and how you
prioritize them.
Answer:
Some of the types of expenses that you should track, and how to prioritize them are:
1. Fixed expenses
Fixed expenses are those that stay the same each month, regardless of your income or spending. Rent, car payments, and insurance are all examples of fixed expenses. These expenses are important to track because they can make up a large portion of your monthly spending. By tracking your fixed expenses, you can see where your money is going and make sure that you are not overspending in any one area.
2. Variable expenses
Variable expenses are those that change each month, depending on your spending habits. Groceries, dining out, and entertainment are all examples of variable expenses. These expenses are also important to track, but they are not as critical as fixed expenses. By tracking your variable expenses, you can see where you can cut back if you need to save money.
3. Discretionary expenses
Discretionary expenses are those that you can choose to spend money on or not. Clothes, vacations, and gifts are all examples of discretionary expenses. These expenses are the least important to track, but they can still add up over time. By tracking your discretionary expenses, you can make sure that you are not spending more than you can afford.
Here is a list of the types of expenses you should track, in order of priority:
Fixed expensesVariable expensesDiscretionary expensesBy tracking your expenses, you can get a better understanding of your spending habits and make sure that you are not overspending in any one area. This can help you to save money and reach your financial goals.
PE and Terminal Stock Price [LO2] In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the "terminal" stock price using a benchmark PE ratio. Suppose a company just paid a dividend of $1.15. The dividends are expected to grow at 20 percent over the next five years. In five years, the estimated payout ratio is 40 percent and the benchmark PE ratio is 21. What is the target stock price in five years? What is the stock price today assuming a required return of 12 percent on this stock?
Answer:
$150.15
$92.31
Explanation:
Target stock price in year 5 = Earnings per share in year 5 x benchmark PE ratio
Earnings per share in year 5 = dividends per share in year 5/ pay-out ratio
Dividend in year 1 = $1.15 x 1.20 = $1.38
Dividend in year 2 = $ 1.15 x 1.20^2 = $1.66
Dividend in year 3 = $1.15 x 1.20^3 = $1.99
Dividend in year 4 = $1.15 x 1.20^4 = $2.38
Dividend in year 5 = $1.15 x 1.20^5 = $2.86
$2.86 / 0.4 = $7.15
$7.15 x 21 = $150.15
b. the stock price today can be found by finding the present value of the dividends
Present value can be found using a financial calculator
Earnings per share in year 5 = dividends per share in year 5/ pay-out ratio
Dividend in year 1 = $1.15 x 1.20 = $1.38
Dividend in year 2 = $ 1.15 x 1.20^2 = $1.66
Dividend in year 3 = $1.15 x 1.20^3 = $1.99
Dividend in year 4 = $1.15 x 1.20^4 = $2.38
Dividend in year 5 = $1.15 x 1.20^5 = $2.86
Stock price in year 5 = $150.15
i = 12%
Stock price (present value) = $92.31
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
CPU-on-Demand (CPUD) offers real-time high-performance computing services. CPUD owns 1 supercomputer that can be accessed through the Internet. Their customers send jobs that arrive, on average, every 5 hours. The standard deviation of the interarrival times is 3 hours. Executing each job takes, on average, 4 hours on the supercomputer and the standard deviation of the processing time is 4.8 hours.
Required:
How long does the customer have to wait to have the job completed?
Answer:
The waiting time is "17.778 hours".
Explanation:
The given values are:
Number of supercomputers with CPUD,
m = 1
Interarrival time's standard deviation,
sd(a) = 3 hours
Processing time,
p = 4 hours
Job's Interarrival time,
a = 5 hours
Processing time's standard deviation,
sd(p) = 4.8 hours
Now,
The coefficient of variation of interarrival time will be:
⇒ [tex]CVa=\frac{sd(a)}{a}[/tex]
[tex]=\frac{3}{5}[/tex]
[tex]=0.6[/tex]
The coefficient of variation of interarrival time will be:
⇒ [tex]CVp=\frac{sd(p)}{p}[/tex]
[tex]=\frac{4.8}{4}[/tex]
[tex]=1.2[/tex]
The utilization will be:
⇒ [tex]u=\frac{p}{ma}[/tex]
[tex]=\frac{4}{1\times 5}[/tex]
[tex]=0.8[/tex]
The expected time of waiting will be:
⇒ [tex]Tq=\frac{p}{m}\times \frac{u^{sqrt[2(m+1)] -1}}{(1-u)}\times \frac{CVa^2+CVp^2}{2}[/tex]
[tex]=\frac{4}{1}\times \frac{(0.8^{sqrt(2(1+1))} - 1)}{(1-0.8)}\times \frac{0.6^2+1.2^2}{2}[/tex]
[tex]=4\times \frac{0.8}{0.2}\times 0.9[/tex]
[tex]=17.778 \ hours[/tex]
Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $385,000, and budgeted direct labor hours were 22,000. The average wage rate for direct labor is expected to be $35 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow:
Job 39 Job 40 Job 41 Job 42
Beginning balance $26,200 $36,000 $15,900 $1,200
Materials requistioned 16,600 21,400 8,700 14,400
Direct labor cost 7,700 18,500 3,350 5,300
Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 120 percent of cost. (Naranjo had originally developed Job 40 to order for a customer; however, that customer was near bankruptcy and the chance of Naranjo being paid was growing dimmer. Naranjo decided to hold Job 40 in inventory while the customer worked out its financial difficulties. Job 40 is the only job in Finished Goods Inventory.) Jobs 41 and 42 remain unfinished at the end of the month.
1. Calculate the overhead rate based on direct labor cost.
_ % of direct labor cost.
2. Set up a simple job-order cost sheet for all jobs in process during June.
3. What if the expected direct labor rate at the beginning of the year was $28 instead of $35? What would the overhead rate be? If required, round your answer to one decimal place.
_ % of direct labor cost
Answer:
Please find attached solution
Explanation:
1. Overhead rate
Total direct labor cost = Direct labor hours × Rate per hour
= 22,000 × $35
= $770,000
Overhead rate
= Estimated overhead / estimated direct labor cost
= 385,000 / 770,000
= 0.5 or 50% of direct labor cost.
Please find attached solution to question 2 and 3.
Journalize the following transactions for Henderson Company. Assume a perpetual inventory system. Also, assume a constant gross profit ratio for all items sold. Make sure to enter the day for each separate transaction.
May 3 Sold goods costing $7,800 to Ward Company for cash, $13,000.
May 9 Ward Company returned undamaged merchandise, purchased on May 3, for a cash refund, $960.
Answer: See explanation
Explanation:
Merchandise inventory are goods which a wholesaler or distributor has gotten from the suppliers in order to sell to third parties.
On May 9, merchandise inventory was calculated as:
= 960 ÷ 13000 × 7800
= 576
Check the attached file for further explanation
LEONE COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Finished goods inventory, beginning Cost of goods manufactured Goods available for sale Less: Finished goods inventory, ending Cost of goods sold Gross profit General and administrative expenses Selling expenses Net income $ 84,000 84,000 92.000 $ 3,251,000 $ (8,000) 3,259,000 127.000 603,000 2,529,000
How do you find the cost of goods manufactured?
The cost of goods manufactured (COGM) is the cost of all the products that a company has manufactured during a period.
How to calculateIt is calculated by adding the beginning finished goods inventory to the total manufacturing costs, and then subtracting the ending finished goods inventory.
In the income statement you provided, the cost of goods manufactured is calculated as follows:
COGM = $92,000 + $3,251,000 - $127,000 = $3,224,000
Therefore, the cost of goods manufactured for Leone Company is $3,224,000.
Here is the formula for calculating COGM:
COGM = Beginning finished goods inventory + Total manufacturing costs - Ending finished goods inventory
The total manufacturing costs include direct materials, direct labor, and manufacturing overhead.
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Which of the following included the time period known as the Grand Period of Hotels? the eighteenth century there was no period called the Grand Period of Hotels the nineteenth century the twentieth century
the eighteenth century
there was no period called the Grand Period of Hotels
the nineteenth century
the twentieth century
Answer:
there was no period called the Grand Period of Hotels
Explanation:
Historically, there is no recorded time period that was known as the Grand Period of Hotels.
Some time periods in history include
1. Early civilization
2. Renaissance
3. Classical world, etc.
Answer:
the nineteenth century
Explanation:
just took it on edge
Kendra makes custom baby quilts embroidered with the baby’s name and date of birth. Although quilts can be partially completed in advance, all quilts remain in the Work in Process Inventory account until the final embroidery is completed. Quilt BBGR12 was completed in July. At the beginning of July, costs accumulated on the quilt were direct materials of $50, direct labor of $75, and overhead of $20. Completing the quilt required 2.5 hours of direct labor at $12 per hour. Overhead is applied at $3 per direct labor hour. What is the total cost on the job cost sheet for Job BBGR12 at the end of July? (Show your work.)
Answer:
$182.50
Explanation:
Calculation of the total cost on the job cost sheet for Job BBGR12
Manufacturing Costs Schedule
Beginning Work In Process Inventory :
Direct Materials $50.00
Direct labor of $75.00
Overhead of $20.00
Incurred during the year :
Direct labor (2.5 hours × $12) $30.00
Overheads (2.5 hours × $3) $7.50
Total cost on the job cost sheet $182.50
1. Bowie manufacturing wants to estimate costs for each product they produce at its Marfa plant. The Marfa plant produces three products at this plant, and runs two flexible assembly lines. Each assembly line can produce all three products. Required:a. Classify each of the following costs as either direct or indirect for each product.b. Classify each of the following costs as either fixed or variable with respect to the number of units produced of each productb) Depreciation on the assembly line equipment (Straight-line)A. Direct and FixedB. Direct and VariableC. Indirect and FixedD. Indirect and Variable
Answer: C. Indirect and Fixed
Explanation:
Depreciation is an indirect expenses because it does not have anything to do with the actual production of goods but rather only affects the equipment used in the assembly line.
It is also a fixed cost because it is being done using a straight-line method which makes depreciation a fixed amount for each of the total number of years it is to be depreciated.
Do you think Global Warming is real or not? Explain Why.
Answer:
Yes
Explanation:
Yes because over time the earth has gotten hotter and hotter each decade, which is undeniable proof that it is real.
The financial records of LeRoi Jones Inc. were destroyed by fire at the end of 2014. Fortunately, the controller had kept certain statistical data related to the income statement as follows.
1. The beginning merchandise inventory was $92,000 and decreased 20% during the current year.
2. Sales discounts amount to $17,000.
3. 20,000 shares of common stock were outstanding for the entire year.
4. Interest expense was $20,000.
5. The income tax rate is 30%.
6. Cost of goods sold amounts to $500,000.
7. Administrative expenses are 20% of cost of goods sold but only 8% of gross sales.
8. Four-fifths of the operating expenses relate to sales activities.
From the foregoing information prepare an income statement for the year 2014 in single-step form. (Round earnings per share to 2 decimal places, e.g. 1.48 and all other answers to 0 decimal places, e.g. 2,520.)
Answer:
LeRoi Jones Inc
Income statement for the year 2014
Sales (100/8 × $100,000) $1,250,000
Less Cost of Sales
Beginning merchandise $92,000
Add Purchases $481,600
Less Ending merchandise ($92,000 - 20%) ($73,600) ($500,000)
Gross Profit $750,000
Less Expenses :
Sales Discounts $17,000
Interest expense $20,000
Administrative expenses ($500,000 × 20%) $100,000 ($137,000)
Profit before tax $613,000
Income tax expense at 30% ($183,900)
Net Income / Loss $429,100
Earnings Per Share $21.46
Explanation:
Notes on income statement preparation
Use the statistical data to fill in the line items of the Income Statement as shown above.
For the Calculation of Sales, first calculate the administrative expenses. Apply the 8% on the administration cost to find sales at 100%.
Earnings Per Share = Earnings attributable to holders of Common Stock ÷ Weighted Average Number of Common Stock
= $429,100 ÷ $20,000
= $21.46
Need help with some questions
Answer:
8
Explanation:
ph is cool watch it
Which career is best suited for people who have a high school diploma?
administration and information support
human resources
business financial management and accounting
business analysis
A
I just took the test
The best suited career for the People have high school diploma is administration and information support.
What is administration?The process of running a business and organisation handling its activities is known as administration. In other words managing all the activities happening in a business organisation is called administration. Administration is the core of any business as it provides the structure of the business.
What is information support?Every business organisation runs on a plan, the plan need information like marketing strategies, promotional strategies, human resources and other things information support is the key to get access to all this information helping to plan a structure of the business.
What are the other suited career for high school diploma students?Data entry workcommunity health care worker mail carrier operator distribution manager insurance agentTo learn more about Business administration, click here
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Using the maximum ratios for a conventional mortgage, how big a monthly payment could the Danforth family afford if their gross (before-tax) monthly income amounted to $6,500? $ Would it make any difference if they were already making monthly installment loan payments totaling $800 on two car loans? Maximum mortgage payment they could make would be $
To solve for the first question you do $6500*0.3 which will give you $1950. 30% is the max in all situations.
The second half you do $6500*.38= 2470 then subtract the 800 from there which will give you $1670.
We would expect the interest rate on Bond A to be higher than the interest rate on Bond B if the two bonds have identical characteristics except that:________.
a. the credit risk associated with Bond A is lower than the credit risk associated with Bond B.
b. Bond A was issued by the city of Philadelphia and Bond B was issued by Red Hat Corporation.
c. Bond A has a term of 20 years and Bond B has a term of 2 years.
d. All of the above are correct.
Answer: d. All of the above are correct.
Explanation:
Bonds with identical characteristics should have the same interest rates and if they do not, there are several reasons why this may the case.
Some of those are;
Credit Risk - Bonds with higher credit risks must have higher interest rates as well to compensate for the credit risk.Type of Issuer - Generally, Government bonds are of lower rates than corporate bonds because Government bonds can be paid off with taxes so Bond A being issued by Philadelphia will make it have a lower rate than Bond B.Term to Maturity - Bonds that have a longer term to Maturity will have higher interest rates as they are more exposed to market conditions. A bond with term 20 years will have a higher rate than one with 2.