Answer:
Based on the information supply of cards is more elastic (price sensitive) than that of roses
Explanation:
Price elasticity of supply is defined as the sensitivity of quantity supplied to changes in price.
The formula is given below
Price elasticity of supply= Change in quantity supplied ÷ Change in price
In this scenario the demand for both roses and cards increases, however the price of roses increases more.
This implies that the denominator in the formula is higher in roses resulting in smaller price elasticity of supply.
The elasticity of supply for cards is higher than that of roses, so it is more sensitive to changes in price.
Cards can be stored from year to year so the labour for maintaining a stock of cards is low with resultant low price.
On the other hand roses require care to grow. It requires watering, application of chemicals to treat infestation and so on. So suppliers tend to push the extra cost of growing roses to the buyers
Answer:
Yes , Valentine cards are more price sensitive.
Explanation:
When Demand exceeds supply, prices rise. As a result of the increase in price, supply increases.
The increase in supply is in line with the law of supply which says, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.
If there's an increase in the demand for roses and cards, it is expected that prices would rise. However, if supply for these items increases, prices would fall and if supply doesn't increase, price would not decrease.
So if the price of roses increases by more than the price of greeting cards it indicates that the supply of rose didn't increase as much as the increase in supply of cards.
This means that the supply of roses is less price sensitive when compared to greeting cards.
You are trying to price two bonds that have the same maturity and par value but different coupon rates. Both bonds mature in 8 years and at maturity both bonds return the par value of $1,000. One bond has a coupon rate of 4% and a yield to maturity of 4%. The other bond has a coupon rate of 5% and a yield to maturity of 4%. What is the absolute value of the difference between the prices of these two bonds
The difference between the prices of the two bonds is $67.33.
What is the bond?A bond is a type of fixed-income mechanism that conveys a loan made by an investor to a borrower. A bond could be considered as an I.O.U. between the lender and borrower that contains the elements of the loan and its payments.
The formula of bond pricing:
[tex]\rm{Bond Price}=C\times\dfrac{1-(1+r)^n}{r}+ \dfrac{F}{(1+r)^n}[/tex]
Where,
C= Coupon Rate, r = Maturity Rate, F= par value, n= Number of year.
Computation of final value of the bond:
Bond 1:
According to the given information,
Coupon rate(C)= 4%,
Maturity rate(r) = 4%,
Par value of the bond(F)= $1,000
Apply the given values in the above formula:
[tex]\rm{Bond Price}=C\times\dfrac{1-(1+r)^n}{r}+ \dfrac{F}{(1+r)^n}\\\\\\\rm{Bond Price}=4\%\times\dfrac{1-(1+4\%)^8}{4\%}+\dfrac{\$1,000}{(1+4\%)^8}\\\\\\\rm{Bond Price}=\$1,000.[/tex]
Therefore, the bond price is $1,000.
Bond 2:
According to the given information,
Coupon rate(C)= 5%,
Maturity rate(r) = 4%,
Par value of the bond(F)= $1,000
Apply the given values in the above formula:
[tex]\rm{Bond Price}=C\times\dfrac{1-(1+r)^n}{r}+ \dfrac{F}{(1+r)^n}\\\\\\\rm{Bond Price}=5\%\times\dfrac{1-(1+4\%)^8}{4\%}+\dfrac{\$1,000}{(1+4\%)^8}\\\\\\\rm{Bond Price}=\$1,067.33.[/tex]
Therefore, the difference between the prices of these two bonds is :
[tex]\text{Difference}= \text{Bond 1-Bond2}\\\\\text{Difference}= \$1,000-\$1,067.33\\\\\text{Difference}= 67.33[/tex]
Learn more about the bond, refer to:
https://brainly.com/question/13559242
Gold futures contracts are based on 100 troy ounces and are priced in dollars per troy ounce. At the end of trading today, you saw a market report on the November contracts with these prices: Open 1293.00, High 1295.00, Low 286.00, and Settle1296.10. If you own two of these contracts, what is the value of your position as of the end of the trading day?
A. $129,610
B. $259,000
C. $258,600
D. $259,220
E. $260,4607.
Answer:
D. $259,220
Explanation:
The computation of the value for your position at the end of the trading day is shown below;
Given that
Settled price = $1296.10
And, the
Two contracts are
= 2 × 100
= 200 troy ounces
Now the position at the end of the day is
= Two contracts × settled price
= $200 × 1296.10
= $259,220
We simply multiplied the two contracts with the settled price so that the value could arrive
hence. the correct option is d.
Comparing costs under ABC to traditional plantwide overhead rate LO P1, P3 Smythe Co. makes furniture. The following data are taken from its production plans for the year. Direct labor costs $ 5,870,000 Hazardous waste disposal costs 630,000 Chairs Tables Expected production 211,000 units 17,000 units Direct labor hours required 254,000 DLH 16,400 DLH Hazardous waste disposed of 200 pounds 800 pounds
Determine the hazardous waste disposal cost per unit for chairs and for tables if costs are assigned using a single plantwide overhead rate based on direct labor hours.
Answer:
Chairs= $2.805
Tables= $2.25
Explanation:
Giving the following information:
Hazardous waste disposal costs= $630,000
Production:
Chairs= 211,000
Tables= 17,000 units
Direct labor hours required:
Chairs= 254,000 DLH
Tables= 16,400 DLH
Total DLH= 270,400
First, we need to calculate the estimated overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 630,000/ 270,400
Estimated manufacturing overhead rate= $2.33 per direct labor hour
Now, we can allocate overhead to each product line:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Chairs= 2.33*254,000= $591,820
Tables= 2.33*16,400= $38,212
Finally overhead per unit:
Chairs= 591,820/211,000= $2.805
Tables= 38,212/17,000= $2.25
For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the indirect method.
A. Added to net income
B. Deducted from net income
C. Cash outflow—investing activity
D. Cash inflow—investing activity
E. Cash outflow—financing activity
F. Cash inflow—financing activity
G. Significant noncash investing and financing activity
____ 1. Decrease in accounts payable during a period
____ 2. Declaration and payment of a cash dividend.
____ 3. Loss on sale of land.
____ 4. Decrease in accounts receivable during a period.
____ 5. Redemption of bonds for cash.
____ 6. Proceeds from sale of equipment at book value.
____ 7. Issuance of common stock for cash.
____ 8. Purchase of a building for cash.
____ 9. Acquisition of land in exchange for common stock.
____ 10. Increase in merchandise inventory during a period
Answer:
1. Decrease in accounts payable during a period - Deducted from net income (B)
2. Declaration and payment of a cash dividend - Cash outflow (financing activity ) (E)
3. Loss on disposal of land - Added to net income (A)
4. Decrease in accounts receivable during a period - Added to net income (A)
5. Redemption of bonds for cash - Cash outflow (financing activity) (E)
6. Proceeds from sale of equipment at book value - Cash inflow (investing activity ) (D)
7. Issuance of common stock for cash - Cash inflow (financing activity) (F)
8. Purchase of a building for cash - Cash outflow(investing activity ) (C)
9. Acquisition of land in exchange for common stock - Significant non-cash (investing and financing activity ) (G)
10. Increase in inventory during a period - Deducted from net income (B)
The following is the ending balances of accounts at December 31, 2018 for the Weismuller Publishing Company.
Account Title Debits Credits
Cash 77,000
Accounts receivable 172,000
Inventories 291,000
Prepaid expenses 160,000
Machinery and equipment 332,000
Accumulated depreciation—equipment 116,000
Investments 152,000
Accounts payable 66,000
Interest payable 26,000
Deferred revenue 86,000
Taxes payable 36,000
Notes payable 230,000
Allowance for uncollectible accounts 22,000
Common stock 406,000
Retained earnings 196,000
Totals 1,184,000 1,184,000
Additional information:
Prepaid expenses include $132,000 paid on December 31, 2018, for a two-year lease on the building that houses both the administrative offices and the manufacturing facility.
Investments include $36,000 in Treasury bills purchased on November 30, 2018. The bills mature on January 30, 2019. The remaining $116,000 includes investments in marketable equity securities that the company intends to sell in the next year.
Deferred revenue represents customer prepayments for magazine subscriptions. Subscriptions are for periods of one year or less.
The notes payable account consists of the following:
a $46,000 note due in six months.
a $106,000 note due in six years.
a $78,000 note due in three annual installments of $26,000 each, with the next installment due August 31, 2019.
The common stock account represents 406,000 shares of no par value common stock issued and outstanding. The corporation has 700,000 shares authorized.
Required:
Prepare a classified balanced sheet for the Weismuller Publishing Company at December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)
Answer:
Weismuller Publishing Company
A Classified Balance Sheet at December 31, 2018
Assets:
Current Assets:
Cash $77,000
Accounts Receivable 172,000
less allowance 22,000 150,000
Investments 152,000
Inventories 291,000
Prepaid Expenses 94,000 $764,000
Long-term Assets:
Prepaid Expenses 66,000
Machinery & Equipment 332,000
less Accumulated Depr. 116,000 216,000 $282,000
Total Assets $1,046,000
Current Liabilities:
Accounts payable $66,000
Interest payable 26,000
Deferred revenue 86,000
Taxes payable 36,000
Notes payable:
Six months 46,000
One year 26,000 72,000 $286,000
Long-term Liabilities:
Notes payable:
Two or more years 52,000
Six years 106,000 $158,000
Total Liabilities $444,000
Equity:
Authorized Common Stock, 700,000 shares
Issued Common Stock $406,000
Retained Earnings 196,000 $602,000
Total Liabilities + Equity $1,046,000
Explanation:
a) Prepaid Expenses are classified as follows:
Current Assets: $160,000 - $66,000 = $94,000
Long-Term Assets = $66,000 ($132,000/2)
Since a year's lease is due in the next year.
b) Investments are classified as current because they include treasury bills maturing on January 30, 2019, and marketable securities saleable next year.
c) Deferred Revenue is a current liability.
d) The classifications of notes payable are indicated in the balance sheet.
Cedar Grove Industries produces and sells a cell phone-operated home security control. Information regarding the costs and sales of security controls during May 2017 are provided below. Unit selling price of security control $49 Unit variable costs $28 Total monthly fixed costs $121,000 Units sold 7,600 Prepare a CVP income statement for Cedar Grove Industries for the month of May. Provide per unit values and total values.
Answer:
$47,000
Explanation:
Cedar Grove Industries CVP Income Statement for Month Ending May, 2017
Total Per Unit
Sales ($49×7,600) $372,400 49
Less Variable Cost
($28×7,300) $204,400 28
Contribution Margin $168,000 21
Less Fixed Cost$121,000
Net Income (loss)$47,000
Harrods PLC has a market value of £139 million and 5 million shares outstanding. Selfridge Department Store has a market value of £41 million and 2 million shares outstanding. Harrods is contemplating acquiring Selfridge. Harrods' CFO concludes that the combined firm with synergy will be worth £195 million, and Selfridge can be acquired at a premium of £10 million. a. If Harrods offers 1.2 million shares of its stock in exchange for the 2 million shares of Selfridge, what will the stock price of Harrods be after the acquisition? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b, What exchange ratio between the two stocks would make the value of a stock offer equivalent to a cash offer £51 million? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616.)
Answer:
(a) The stock price of Harrods be after the acquisition is £ 31.45
(b) The exchange ratio between the two stocks would be 0.8550
Explanation:
Harrods PLC has a market value of £139 million and 5 million shares outstanding.
Selfridge Department Store has a market value of £41 million and 2 million shares outstanding.
a) If Harrods offers 1.2 million shares of its stock in exchange for the 2 million shares of Selfridge
Shares outstanding = 5 + 1.2 = 6.2 million
Stock price = £ 195 million ÷ 6.2 million = £ 31.45
b) alpha × 195 = 51
alpha = £51 million ÷ £195 million
= 26.15%
(195 ÷ ( 5 +X ) ) × X = 51
51 (5+X) = 195X
255 + 51X = 195X
144X = 255
X = 1.77 million shares
Exchange ratio would be: 1.77 ÷ 2
= 0.8550
In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in calculating the cash break-even. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)
Case Unit Price Unit Variable Cost Fixed Costs Depreciation
1 $ 2,800 $ 2,295 $ 7,000,000 $ 1,250,000
2 51 43 65,000 160,000
3 12 4 1,800 700
Case Accounting break-even Cash break-even
1
2
3
Answer:
Accounting break-even
Case
1 11,386.13 units
2 = 28125 units
3 312.5 units
Cash break-even
Case Break-even
1 = 13,861.38
2 = 8125
3 = 312.5
Explanation:
Accounting break even is computed as
Break-even = (total fixed cost + depreciation ) /selling price - variable cost per unit
Case
1 = (7,000,000 + 1,250,000)/(2,800- 2,295)= 11386.13861
2 (65,000 +160,000)/(51-43 ) unit = 28125
3 (1,800 + 700)/ (12- 4)= 312.5
Cash break even
Under here only cash based fixed cost would be used , depreciation would be ignored. This is so because it is not a fixed cost .
Break-even = (total fixed cost ) /selling price - variable cost per unit
1 = (7,000,000 )/(2,800- 2,295)= 13,861.38
2 (65,000 )/(51-43 ) unit = 8125
3 (1,800 + 700)/ (12- 4)= 312.5
The Winston Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. The total machine hours for the year were 54,300. The actual factory overhead for the year was $1,375,000. a) Determine the total factory overhead amount applied. b) Calculate the over or under applied amount for the year. c) Prepare the journal entry to close factory overhead into Cost of Goods Sold.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Estimated factory overhead= $1,250,000.
Estimated machine-hours= 50,000 hours.
The total machine hours for the year were 54,300. The actual factory overhead for the year was $1,375,000.
First, we need to determine the predetermined manufacturing overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 1,250,000/50,000= $25 er machine hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 25*54,300= $1,357,500
Finally, we calculate the under/over allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 1,375,000 - 1,357,500
Under/over applied overhead= $17,500 underapplied
Cost of goods sold 17,500
Manufacturing overhead 17,500
Required: Steve Queen and Chelsy Bernard formed a partnership, dividing income as follows: Annual salary allowance to Bernard of $88,920. Interest of 5% on each partner's capital balance on January 1. Any remaining net income divided to Queen and Bernard, 1:2. Queen and Bernard had $96,000 and $93,000, respectively, in their January 1 capital balances. Net income for the year was $156,000. How much is distributed to Queen and Bernard
Answer:
Queen = $126,640
Bernard = $42,410
Explanation:
2,530 answers
Remaining profit = $156,000 - $88,920 - ($96,00,000 + $93,000) X 7%
Remaining profit = $53,850
Queen: $88,920 + ($96,000 X 7%) + ($53,850 X 1/3)
Queen= $126,640
Bernard: ($93,000 X 7%) + ($53,850 X 2/3)
Bernard = $42,410
Analysis reveals that a company had a net increase in cash of
$21,980 for the current year. Net cash provided by operating
activities was $19,800; net cash used in investing activities
was $10,900 and net cash provided by financing activities
was $13,080. If the year-end cash balance is $26,700, the
beginning cash balance was:
Answer:
The multiple choices are as follows:
$4,720.
$17,260.
$48,680.
$43,960.
$42,960.
The beginning cash balance was $4,720
Explanation:
The formula for closing cash balance can be used to determine the opening cash balance as shown thus:
closing cash balance=net increase in cash+opening balance of cash
by arranging the equation
opening cash balance =closing cash balance-net increase in cash
closing cash balance is $26,700
net increase in cash is $21,980
opening cash balance=$26,700-$21,980=$4,720
Zachary Manufacturing Company has an opportunity to purchase some technologically advanced equipment that will reduce the company’s cash outflow for operating expenses by $1,287,000 per year. The cost of the equipment is $9,187,846.67. Zachary expects it to have a 11-year useful life and a zero salvage value. The company has established an investment opportunity hurdle rate of 15 percent and uses the straight-line method for depreciation. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)
Required:
a. Calculate the internal rate of return of the investment opportunity. (Do not round intermediate calculations.)
b. Indicate whether the investment opportunity should be accepted.
1. Internal Rate of Return
2. Should the investment opportunity be accepted?
Answer:
IRR = 8%
Don't accept the project
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR can be calculated using a financial calculator:
Cash flow in year 0 = -9,187,846.67
Cash flow each year from year 1 to 11 = 1287000
IRR = 8%
Because the IRR is less than the hurdle rate, the project shouldn't be accepted.
To find the IRR using a financial calacutor:
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 IRR button and then press the compute button.
I hope my answer helps you
Answer:
a) IRR
IRR = 9%
b)
Since the IRR is less than the hurdle rate , the project should be rejected. An IRR with higher than the hurdle rate implies that the project would decrase the wealth of ths shareholders
Explanation:
IRR = a% + ( NPVa/(NPVa + NPVb)× (b-a)%
NPV = PV of annual savings - initial cost
PV of annual savings = A× (1- (1+r)^(-n) )/r
A- annual savings in operating cost , r- rate of return, n- number of years
NPVa
PV of annual savings = 1,287,000 × (1- 1.15^(-11))/0.15= 6,735,787.15
NPV = 6,735,787.15 - 9,187,846.67.= 2,452,059.52
NPVb
PV of annual savings = (1,287,000 × (1- 1.03^(-11))/0.03=11908127.23
NPV b = 11908127.23 -9187846.67 =2720280.564
IRR = 3% + ( 2720280.564 /(2720280.564 +2,452,059.52) )× (15-3)%
IRR = 9%
Since the IRR is less than the hurdle rate , the project should be rejected. An IRR with higher than the hurdle rate implies that the project would decrase the wealth of ths shareholders
Paralegal Jane and legal secretary Allison are eating lunch in a local restaurant that is popular among legal professionals. During lunch they discuss a well-known client's case and his poor financial condition. Their conversation is overheard by a paralegal who works for the bank where the client maintains his accounts and loans. This is an example of:________.
a. A breach of the client confidentiality rule
b. The client consenting to disclosure of confidential information
c. An impliedly authorized disclosure of confidential client information
d. The client consenting to disclosure of confidential information and an
impliedly authorized disclosure of confidential client information
Answer:
a. A breach of the client confidentiality rule
Explanation:
Your firm is considering two different projects that are mutually exclusiveand they will be replaced once the project is over. Given a required return of 12%, which project should your firm undertake(Hint: you should calculate the EAA to decide which is the better project for this problem)
Your firm is considering two different projects that are mutually exclusiveand they will be replaced once the project is over. Given a required return of 12%, which project should your firm undertake(Hint: you should calculate the EAA to decide which is the better project for this problem)
Time 0 1 2 3
Project A -25,000 15,000 20,000 20,000
Project B -25,000 11,000 11,000 11,000
Answer:
Project A should be better and should be accepted because it produces a higher EAA of $7,732.5746
Explanation:
NPV = PV of cash inflow- Initial cost
PV of cash inflow = 15,000×1.12^(-1) + 20,000×1.12^(-2) + 20,000×1.12^(-3)=43,572.33
NPV = 43,572.33 -25,000 =18572.33965
EAA= NPV /Annuity factor
= 18572.339/2.401831268 = 7732.57468
Project B
PV of annuity = A× (1- (1+r)^(-n))/r
= 11,000× (1-1.12^(-4))/0.12=33410.84281
NPV = 33410.84281 - 25,000= 8410.842813
EAA = 8410.842/3.03734 =2769.139
Project A should be better and should be accepted because it produces a higher EAA of $7,732.5746
Schwartz Industry is an industrial company with 100100 million shares outstanding and a market capitalization (equity value) of $ 4$4 billion. It has $22 billion of debt outstanding. Management have decided to delever the firm by issuing new equity to repay all outstanding debt. a. How many new shares must the firm issue? b. Suppose you are a shareholder holding 100 shares, and you disagree with this decision. Assuming a perfect capital market, describe what you can do to undo the effect of this decision.
Answer:
HA LOL
Explanation:
Majka Company was started on January 1, Year 1. During Year 1, the company experienced the following three accounting events: (1) earned cash revenues of $29,500, (2) paid cash expenses of $13,500, and (3) paid a $1,800 cash dividend to its stockholders. These were the only events that affected the company during Year 2016.
a. Create an accounting equation and record the effects of each accounting event under the appropriate general ledger account headings.
b. Prepare an income statement, statement of changes in stockholders’ equity, and a balance sheet dated December 31, 2016, for Majka Company.
c. Explain why the income statement uses different terminology to date the income statement than is used to date the balance sheet.
Answer:
Majka Company
a) Accounting equation to record effects of each event:
1. Assets (Cash) increased $29,500 = Liabilities + Equity (Retained Earnings) increased $29,500.
2. Assets (Cash) decreased $13,500 = Liabilities + Equity (Retained Earnings) decreased $13,500.
3. Assets (Cash) decreased $1,800 = Liabilities + Equity (Retained Earnings) decreased $1,800.
b) Income Statement, Statement of Changes in Stockholders' Equity, and a Balance Sheet dated December 31, 2016:
1) Income Statement for the year ended December 31, 2016:
Sales $29,500
Expenses ($13,500)
Net Income $16,000
Dividend ($1,800)
Retained Earnings $14,200
2) Statement of Changes in Stockholders' Equity:
Retained Earnings b/f $0
Net Income $16,000
Dividend ($1,800)
Retained Earnings $14,200
3. Balance Sheet as at December 31, 2016:
Assets:
Cash ($29,500 - 13,500 - 1,800) $14,200
Liabilities + Equity:
Equity: Retained Earnings $14,200
c) Reason for different terminology to date income statement and balance sheet:
Income statement is prepared for an accounting period. It covers a specified period, while a balance sheet is prepared as at an accounting date. This means that one can prepare a balance sheet daily, or even after each transaction. But, an income statement covers a period of time, say a month, a quarter, or six months, or a year, as the case may be.
Explanation:
Income Statement, Changes in Equity, and the Balance Sheet are important financial statements, which a business prepares to report its financial performance (results), the changes that occur in owners' equity, and the financial position respectively.
The computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of the end of June, Business Solutions's job cost sheets show the following total costs accumulated on three furniture jobs.
Job 602 Job 603 Job 604
Direct materials $ 1,500 $ 3,700 $ 2,800
Direct labor 900 1,380 1,800
Overhead 360 552 720
Job 602 was started in production in May, and these costs were assigned to it in May: direct materials, $600; direct labor, $250; and overhead, $100. Jobs 603 and 604 were started in June. Overhead cost is applied with a predetermined rate based on direct labor costs. Jobs 602 and 603 are finished in June, and Job 604 is expected to be finished in July. No raw materials are used indirectly in June. (Assume this company’s predetermined overhead rate did not change over these months.)
Required:1. What is the cost of the raw materials used in June for each of the three jobs and in total?2. How much total direct labor cost is incurred in June?3. What predetermined overhead rate is used in June?4. How much cost is transferred to finished goods inventory in June? (Leave no cell blank enter "0" wherever required.)
Answer:
Results are below.
Explanation:
Giving the following information:
Job 602 Job 603 Job 604
Direct materials= $ 1,500 $ 3,700 $ 2,800
Direct labor= 900 1,380 1,800
Overhead= 360 552 720
Job 602:
direct materials= $600
direct labor= $250
overhead= $100.
1) Raw materials:
Job 602= 1,500 - 600= $900
Job 603= 3,700
Job 604= 2,800
Total= $7,400
2) Direct labor:
Job 602= 900 - 250= $650
Job 603= 1,380
Job 604= 1,800
Total= $3,830
3) Overhead:
Job 602= 350 - 100= 250
Job 603= 552
Job 604= 720
Total= $1,522
4) The cost transferred to finished goods is the total cost of jobs 602 and 603.
Total cost 602= 1,500 + 900 + 360= 2,760
Total cost 603= 3,700 + 1,380 + 552= $5,632
Total cost transferred to finished goods= 2,760 + 5,632= $8,392
A decrease in the interest rate results in:______.
1. a greater opportunity cost of investment and so planned investment spending increases.
2. a smaller opportunity cost of investment and so planned investment spending decreases.
3. a smaller opportunity cost of investment and so planned investment spending increases.
4. a greater opportunity cost of investment and so planned investment spending decreases.
Answer:
3. a smaller opportunity cost of investment and so planned investment spending increases.
Explanation:
Opportunity cost is defined as the foregone alternative when a person undertakes an activity. For example going to work is the opportunity cost of staying at home to rest.
Opportunity cost is weighed against activity to be undertaken.
In this instance the opportunity cost of investment is the alternative foregone by investors.
As interest rate decreases it makes investment attractive because the cost of doing business decreases. This make other alternatives less attractive (smaller opportunity cost).
Investment now increases.
The monetary regulation agencies use interest rate a tool to either boost or reduce investment. The higher the interest rate th lower investment, and vice versa
Six equal annual contributions are made to a fund, with the first deposit on December 31, 2019. Required: Using the future value tables, determine the equal contributions that, if invested at 10% compounded annually, will accumulate to a fund of $30,000 on December 31, 2024.
Answer:
The answer is $3,888.22
Explanation:
This is an annuity due because the cash flow is being done on the first day of each period.
Annuity is a fixed sum of money paid to or receceived from someone or business every year.
Future Value(FV) = $30,000
Interest rate(i or I/Y) = 10%
Number of years(N)= 6 years
Annuity (PMT) = ?
Using a Financial calculator to solve it (Texa BA II Plus )
Annuity (equal contributions) will be $3,888.22
purchased equipment on January1, 2018,for $ 27 comma 419.Suppose Duck Pond Golf Club Sold the equipment for $ 19 comma 000 on December 31 comma 2019.Accumulated Depreciation as of December31, 2019,was $ 12 comma 186.Journalize the sale of the equipment, assuming straight-line depreciation was used.
Answer:
31 December 2019
Cash 19000 Dr
Accumulated depreciation 12186 Dr
Equipment 27419 Cr
Gain on disposal 3767 Cr
Explanation:
Straight line depreciation method charges a constant depreciation expense through out the useful life of the asset.
To calculate the gain or loss on disposal/sale of an asset like this, we need to first determine the book value or carrying value of asset on that day.
Carrying value = Cost - Accumulated depreciation
Carrying value = 27419 - 12186
Carrying value = $15233
Gain or (loss) on disposal = Cash/Sale proceeds - Carrying Value
Gain or (loss) on disposal = 19000 - 15233
Gain or (loss) on disposal = $3767 Gain
Changes in the job market, such as significant expansion or reduction within a particular career field, causing large numbers of people to move up or down the class ladder would characterize ________________ mobility.
Answer:
social
Explanation:
Social mobility refers changes in an individual's social economic class within a stratification system. A social stratification system is the way society ranks individuals and families according to the social status. A person's or a family's social status is generally determined by wealth or power (or both).
When a person moves up the social ladder (stratification system) it means that they are improving their status and society generally perceives them as more valuable. E.g. Serguei Brin went from being a Russian immigrant to an extremely wealthy and powerful person after Google was a success. That is a clear example of a person moving up the social ladder.
People can also lower their social class when they lose their jobs and go through severe economic hardships.
Neon Light Company of Kansas City ships lamps and lighting appliances throughout the country. Ms. Neon has determined that through the establishment of local collection centers around the country, she can speed up the collection of payments by one and one-half days. Furthermore, the cash management department of her bank has indicated to her that she can defer her payments on her accounts by one-half day without affecting suppliers. The bank has a remote disbursement center in Florida.a. If Neon Light Company has $3.20 million per day in collections and $1.24 million per day in disbursements, how many dollars will the cash management system free up? (Enter your answer in dollars not in millions (e.g., $1,234,567).) Freed-up funds $b. If Neon Light Company can earn 10 percent per annum on freed-up funds, how much will the income be? (Enter your answer in dollars not in millions (e.g., $1,234,567).)
Answer:
a. The amount of dollars will the cash management system free up is $10,220,000
b. The income will be of $1,022,000
Explanation:
a. According to the given data in order to calculate the amount of dollars will the cash management system free up we would have to make the following calculation:
Freed-up fund = $3,200,000 * 3 + $1,240,000 * 1/2
Freed-up fund = $10,220,000
The amount of dollars will the cash management system free up is $10,220,000
b. To calculate the income If Neon Light Company can earn 10 percent per annum on freed-up funds we would have to make the following calculation:
Interest on freed-up cash = $10,220,000 * 10%
Interest on freed-up cash=$1,022,000
The income will be of $1,022,000
Select either true or false for the following statements. 1. Relevant costs are also known as unavoidable costs 2. Incremental costs are also known as differential costs 3. An out-of-pocket cost requires a current and/or future outlay of cash. 4. An opportunity cost is the potential benefit that is lost by taking a specific action when two or more alternative choices are available 5. A sunk cost will change with a future course of action.
Answer:
1. Relevant costs are also known as unavoidable costs - False.
Relevant costs are in fact, avoidable cost that only emerge in specific business decisions.
2. Incremental costs are also known as differential costs - False
Incremental costs are costs that are incurred when an additional unit of output is produced. Differential costs ocurr when a particular product is made instead of another.
3. An out-of-pocket cost requires a current and/or future outlay of cash. - True
An out-of-pocket cost or expense is a direct payment of money, in other words, an outlay of cash.
4. An opportunity cost is the potential benefit that is lost by taking a specific action when two or more alternative choices are available - True
An opportunity cost can also be defined as what is given up to obtain something.
5. A sunk cost will change with a future course of action. - False
Sunk costs are costs incurred in the past, that cannot be recovered, or modified.
John has an auto which is covered for collision losses subject to a $250 deductible. Kate's auto also has collision coverage but her deductible is $500. How would a $2,000 collision loss be paid if it occurs when John borrows Kate's car because his car is in the shop for repairs?
Answer:
Kate policy will pay 1500 dollars while Johns policy will pay 250 dollars
Explanation:
kates policy will pay 1500 dollars while johns policy will pay 250 dollars.
Since Kates deductible is 500 dollars, this deductible will be subtracted from the 2000 dollars collission loss that occurred when John borrowed her car. which gives $1500. therefore her policy will get to pay 1500 dollars. while johns policy will have to pay $250
Brickhouse is expected to pay a dividend of $2.90 and $2.36 over the next two years, respectively. After that, the company is expected to increase its annual dividend at 3.4 percent. What is the stock price today if the required return is 10.8 percent?
Answer:
$31.40
Explanation:
Value of stock is the sum of present value of all the dividends associated with stock in future.
We will use the following formula to calculate the present values of dividends
Present Values = P x ( 1 + r )^-n
First year = $2.90 x ( 1 + 10.8% )^-1 = $2.62
Second year = $2.36 x ( 1 + 10.8% )^-2 = $1.92
First we need to calculate the value of stock at year 2 and discount it to year 0.
After second year = [ $2.36 x ( 1 + 3.4% ) / ( 10.8% - 3.4% ) ] x ( 1 + 10.8% )^-2 =$26.86
Now add all the present values of dividend below to determine the value of stock.
Value of stock = $2.62 + $1.92 + $26.86 = $31.40
Kylie was born into a family that owns numerous corporations and more than one multimillion dollar home. She never worried about paying for college or
buying her own car. These characteristics define Kylie's
In developing a marketing plan, the section on goals and objectives defines the parameters by which the firm will measure actual performance. In this respect, the goals and objectives section is tied closely to the __________ section of the marketing plan.
Answer:
Evaluation and control
Explanation:
The goals and objectives section shows the things that the company wants to accomplish. As the statement indicates that the section on goals and objectives defines the parameters by which the firm will measure actual performance, we can infer that this refers to the evaluation and control section because this part of the marketing plan includes the measurements that will help you evaluate if the objectives can be accomplished, the performance standards to which the indicators are compared and the actions to take if the goals are not achieved. According to this, the answer is that in this respect, the goals and objectives section is tied closely to the evaluation and control section of the marketing plan.
True or False: The price consumers pay will be higher if the tax were imposed on producers. True False If the demand for gasoline were less elastic, this tax would be effective in reducing the quantity of gasoline consumed. True or False: Consumers of gasoline are hurt by this tax. True False Workers in the oil industry are by this tax.
Consider the production function Q = f(L,K) = 10KL / K+L. The marginal products of labor and capital for this function are given by?
MPL = 10K^2 / (K +L)^2, MPK = 10L^2 / (K +L)^2.
(a) In the short run, assume that capital is fixed at K = 4. What is the production function for the firm (quantity as a function of labor only)? What are the average and marginal products of labor? Draw APL and MPL on one graph.
(b) What is the marginal rate of technical substitution for this technology?
(c) Are the returns to scale of this production function increasing, decreasing or constant? Explain.
Answer:
ANSWER IS BELOW :)
Explanation:
Tbh im not sure, but I think its 10(5)+65
You have just purchased a U.S. Treasury bond for $747.25. No payments will be made until the bond matures 5 years from now, at which time it will be redeemed for $1,000. What interest rate will you earn on this bond
Answer:
6% interest rate
Explanation:
The equation you should use is just a variation of the PV formula:
r = (FV/PV)1/t -1
r = ($1000/$747.25)1/5 - 1
r = 6% interest rate
The interest rate i will eventually earn on this bond is 6%
