Answer:
$202,000
Explanation:
Computation of Net Cash Generated From Financing Activities
Cash generated from the preferred stock (25,000 * $60) $1500,000
Less: Preferred stock Dividend (25000 * $40 par * 5%) ($50,000)
Less: Treasury stock (12,000 shares * $68 per share) ($816,000)
Less: Interest Payments ($32,000)
Less: Bond Redemption (Interest Exclusive) ($400,000)
Net Cash Generated From Financing Activities $202,000
who profits incentives
Answer:
An incentive is a reason or reward for doing a particular task and is central to understanding economics. If there is not a good reason to make a product or provide a service, then no one will make that product or provide that service. One major incentive in any action is the opportunity for a reward.
Two new variables, the market value of the firm (a measure of firm size, in millions of dollars) and stock return (a measure of firm performance, in percentage points), are added to the regression: ModifyingAbove ln (Earnings )with caret equals 3.86 minus 0.28 Female plus 0.37 ln (MarketValue )plus 0.004 Return(Earnings)=3.86−0.28Female+0.37ln(MarketValue)+0.004Return, (0.030.03) (0.040.04) (0.0040.004) (0.0030.003) n = 46,670, Upper R overbar squared R2 = 0.345. If MarketValue increases by 4.644.64%, what is the increase in earnings
Answer:
Explanation:
If Market Value increases by 4.64%, then earnings increase by:
㏑(Earnings) = 0.37 × ㏑(4.64)
= 0.37 × 1.534714
Earnings = Exp (0.56784418)
= 1.76%
If Market Value increases by 4.64%, earnings increase by 1.76%
Aquaguard manufactures three models of water purifiers in three separate plants at Taiwan. These plants serve the demand in Europe. All three models sell at a unit price of $100 and the holding cost is 5% of the selling price per month. The monthly demand for these models is normally distributed with the following parameters:
Model 1: Mean 1000, SD 300
Model 2: Mean 1000, SD 300
Model 3: Mean 1000, SD 300
The demand for Model 1 and Model 2 has a correlation coefficient of (-) 0.35, while that for Model 3 is independent of the other two models. The company wishes to make two of the models in one plant by using flexible technology.
Required:
a) Which two models should Aquaguard choose in order to minimize production variability in the new plant? (as measured by the coefficient of variation).
Answer:
Aquaguard may choose any of the two models to minimize the production variability in the new plant.
Explanation:
Model 1: Mean = 1000, Standard Deviation(SD) = 300
Model 2: Mean = 1000, SD = 300
Model 3: Mean = 1000, SD = 300
Coefficient of variation for model 1
C.V = ( SD ÷ Mean) × 100
= ( 300 ÷ 1000 ) × 100
= 30 %
Coefficient of variation for model 2
= ( 300 ÷ 1000 ) × 100
= 30 %
Coefficient of variation for model 3
= ( 300 ÷ 1000 ) × 100
= 30 %
We conclude that all the models have same effect .
What’s businesses can I do online that cost very little to start?
Answer:
A face mask buisness.
Explanation:
You can buy face mask and sell them or sew them with a sewing machine as well. You could make a lot of money.
Opponents of tax reforms intended to raise saving argue that such reforms a. favor those with high income, and that saving may not rise because of the substitution effect. b. favor those with high income, and that saving may not rise because of the income effect. c. favor those with low income, and that saving may not rise because of the substitution effect. d. favor those with low income, and that saving may not rise because of the income effect.
Answer:
Option B
Explanation:
In simple words, under such tax reforms the government is intending to raise indirect taxes which will lead to higher prices of certain goods and is also declining taxes on savings. Both of these steps will work as an incentive for individuals to save more.
However a big majority of community is stating that this will only lead to more burden on the weaker section due to higher prices of commodities and will eventually result in lower standard of living for certain individuals.
Bolster Foods’ (BF) balance sheet shows a total of $25 million long-term debt with a coupon rate of 8.50%. The yield to maturity on this debt is 8.00%, and the debt has a total current market value of $27 million. The balance sheet also shows that the company has 10 million shares of stock, and the stock has a book value per share of $5.00. The current stock price is $20.00 per share, and stockholders' required rate of return, rs, is 12.25%. The company recently decided that its target capital structure should have 35% debt, with the balance being common equity. The tax rate is 40%. Calculate WACCs based on book, market, and target capital structures. What is the sum of these three WACCs?
Answer:
Sum of these three WACCs = 30.77%
Explanation:
As per the data given in the question,
We need to do following calculations which are shown below:
Cost of debt =Yield to maturity × (1 - tax rate)
=8% × (1 - 0.40)
= 4.8%
And, the required rate of return is 12.25%
To calculate Book value :
Total value = $25 million +$10 million × $5.00
= $75 million
WACC = (Debt ÷ total value ) × cost of debt + (Equity total value ÷ total value ) × cost of debt
= 25 ÷ 75 × 4.8% + 50 ÷ 75 × 12.25%
= 9.77%
To calculate Market value :
Total value = $27 million + 10 million × $20.00
= $227 million
WACC = 27 ÷ 227 × 4.8% + 200 ÷ 227 × 12.25%
= 11.36%
Now Target capital structure :
Weight of debt = 0.35
Weight of equity = 1 - 0.35 = 0.65
WACC = 0.35 × 4.8% + 0.65 × 12.25%
= 9.64%
Sum of these three WACCs
= 9.77% + 11.36% + 9.64%
= 30.77%
The sum of these three WACCs is 30.77%.
Based on the information given, the book value will be calculated as:
= $25 million + ($10 million × $5.00)
= $25 million + $50 million
= $75 million
The first WACC will be:
= (25 / 75 × 4.8%) + (50/ 75 × 12.25%)
= 9.77%
The second WACC will be:
= (27 / 227 × 4.8%) +( 200 / 227 × 12.25%)
= 11.36%
The third WACC will be:
= (0.35 × 4.8%) + (0.65 × 12.25%)
= 9.64%
Therefore, the sum of these three WACCs will be:
= 9.77% + 11.36% + 9.64% = 30.77%
In conclusion, the correct option is 30.77%.
Read related link on:
https://brainly.com/question/20144203
William has an A.A. in general studies, but he does not know what career he wants to pursue. He decides to get a job for a year before going back to school. He wants a job near home in an office. He enjoys collaborating with other employees. William places a lot of value on freedom of thought and action at work. He needs about $50,000 per year.
William interviews at a company as an entry level sales person. He learns that it takes about 15 minutes to drive to the office. His job would be to work in a cubicle on a phone talking to potential clients from a script. The job pays about $50,000 per year with the possibility for performance-based bonuses.
Which factor makes this job a poor fit for William?
a. The company is in a bad location.
b. He wants more freedom in how he makes sales.
c. He is opposed to sales work.
d. The job does not pay enough money.
Answer:
b. He wants more freedom in how he makes sales.
Explanation:
The factor that makes this job an inappropriate fit for William corresponds to the lack of freedom in the way he makes sales, as all the other requirements that Willian wants for the job are met, such as the possibility that his office is only 15 minutes away from his office. home and also the $ 50,000 annual income he wants to raise.
However, in the announcement of the issue, a little bit is said about Willian's personality, who likes to collaborate with other employees and who values freedom of thought and action at work.
So the working conditions offered by the company can be an impediment for Willian to accept the job offer, since his job would be to work in a cubicle on a phone talking to potential clients from a script, and this could conflict with his professional profile, which needs more freedom to be able to express itself and reach its maximum efficiency.
It is concluded that this question shows the importance of an individual looking for a job in a company that identifies with the culture and organizational values, as well as the importance of companies selecting candidates with the most appropriate profile for the company, for that the work develops the capacities and skills of the employee, in order to make the work more motivating and productive.
Arena Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead.The standard cost card for the company’s only product is as follows:Inputs Standard Quantityor Hours Standard Price or Rate Standard CostDirect materials 1.2 pounds $ 5.50 per pound $ 6.60Direct labor 0.90 hours $ 21.00 per hour 18.90Fixed manufacturing overhead 0.90 hours $ 4.50 per hour 4.05Total standard cost per unit $ 29.55The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $81,000 and budgeted activity of 18,000 hours.During the year, the company completed the following transactions:Purchased 35,400 pounds of raw material at a price of $4.60 per pound.Used 32,180 pounds of the raw material to produce 26,900 units of work in process.Assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 23,810 hours at an average cost of $20.60 per hour.Applied fixed overhead to the 26,900 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allowed. Actual fixed overhead costs for the year were $67,800. Of this total, $3,800 related to items such as insurance, utilities, and indirect labor salaries that were all paid in cash and $64,000 related to depreciation of manufacturing equipment.Completed and transferred 26,900 units from work in process to finished goods.Sold (for cash) 27,100 units to customers at a price of $36.60 per unit.Transferred the standard cost associated with the 27,100 units sold from finished goods to cost of goods sold.Paid $149,000 of selling and administrative expenses.Closed all standard cost variances to cost of goods sold.The company calculated the following variances for the year:Materials price variance $ 31,860 FMaterials quantity variance $ 550 FLabor rate variance $ 9,524 FLabor efficiency variance $ 8,400 FFixed manufacturing overhead budget variance $ 13,200 FFixed manufacturing overhead volume variance $ 27,945 FTo answer the following questions, you will need to record transactions a through i in the worksheet below. This worksheet is similar to the worksheets in your text except that it has been split into two parts to fit on the page. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.Cash Raw Materials Work in Process Finished Goods PP&E (net) = Materials Price Variance Materials Quantity Variance Labor Rate Variance Labor Efficiency Variance FOH Budget Variance FOH Volume Variance Retained Earnings 1/1 $1,200,000 $29,700 $0 $70,920 $505,400 = $0 $0 $0 $0 $0 $0 $1,806,020 a. = b. = c. = d. = e. = f. = g. = h. = i. = 12/31 = The ending balance in the PP&E (net) account will be closest to:A. $505,400B. $441,400C. $396,455D. $501,600
Answer: B.) $441,400
Explanation:
The ending balance in the Property, Plant and Equipment (net) account will be closest to:
The PP&E (net) is the Property, Plant and Equipment net of depreciation.
The sum of the capital balance and capital expenditure during the year, Less the Depreciation during the year.
Opening balance + Capital expenditure during the year - depreciation during the year = $(505,400 + 0 - 64,000) = $441,400
Systems is a start-up company that makes connectors for high-speed Internet connections. The company has budgeted variable costs of $ 125 for each connector and fixed costs of $ 4 comma 500 per month. ExpertNet's static budget predicted production and sales of 100 connectors in August, but the company actually produced and sold only 77 connectors at a total cost of $ 26 comma 000. ExpertNet's sales volume variance for total costs is
Answer:
Volume variance $2,875 favorable
Explanation:
The volume variance is the difference between the standard cost of the budgeted production units and the actual cost of the actual production units.
$
Standard cost of 100 units:
= 4,500 + (100× 125) 17,000
Actual cost for 77 units ( 4,500 + (77× 125) = 14,125
Volume variance 2,875 favorable
9. An expenditures incurred on factors of production
A, cost
B, input
C, fixed input
D, variable input
Answer:
A) cost
Explanation:
In economics, the cost of production is defined as the expenditures incurred to obtain the factors of production.
In the Month of March, Baldwin Corporation received orders of 158 units at a price of $15.00 for their product Bolt. Baldwin uses the accrual method of accounting and offers 30 day credit terms. Baldwin delivers 106 units in March and the balance of 53 units in April. They received payment for 53 units in March, 53 units in April, and 53 units in May. How much revenue is recognized on the March income statement from this order
Answer:
The revenue recognized is "$1,470".
Explanation:
In March, no sales will be acknowledged because the goods became shipped in April although Baldwin follows the financial reporting accrual process.Both sales will be recognized in April because the distribution of the goods was in April. An application being filled or revenue is recognized after all the burden is passed on to the customer and distribution according to Accrual Accounting.Therefore sales in April was recognized,
= [tex]98\times 15[/tex]
= $[tex]1470[/tex]
Some of Intel's financial statement data includes:
2015 2016
Total assets 105,000 125,000
Net income 10,000 11,000
Sales 95,000 100,000
Equity 30,000 32,000
Compute Intel's return on equity (ROE) for 2016.
Answer:
ROE 2016 = 34.375%
Explanation:
ROE or return on equity is a measure of the profitability of the business. It is calculated as a relation of profitability to the equity.
The Dupont equation is an expanded version of calculating the ROE. It is calculated using the Net Profit Margin, the Total assets turnover and the equity multiplier.
The formula for calculating ROE under this method,
ROE = Net Income / Sales * Sales / Total Assets * Total Assets / Equity
ROE (2016) = 11000 / 100000 * 100000 / 125000 * 125000 / 32000
ROE (2016) = 0.34375 or 34.375%
Scenario 13-3 Ziva is an organic lettuce farmer, but she also spends part of her day as a professional organizing consultant. As a consultant, Ziva helps people organize their houses. Due to the popularity of her home-organization services, Farmer Ziva has more clients requesting her services than she has time to help if she maintains her farming business. Farmer Ziva charges $25 an hour for her home-organization services. One spring day, Ziva spends 10 hours in her fields planting $130 worth of seeds on her farm. She expects that the seeds she planted will yield $300 worth of lettuce. Refer to Scenario 13-3.
Ziva's economic profit from farming equals
a. $130.
b. −$130.
c. −$80.
d. $170.
Answer:
c. −$80.
Explanation:
The computation of the economic profit is shown below:
Economic profit = Total revenue - Cost of seeds - Earning foregone
where,
Total sales revenue is $300
Cost of seeds is $130
And, the earning foregone is
= 10 hours × $25
= $250
So, the economic profit is
= $300 - $130 - $250
= -$80
We simply applied the above formula to determine the economic profit
The method by which consumers acquire products and services
A deficit in a nation’s current account means:
A. it must limit the flow of foreign capital investment
B. it must have a deficit in its financial account as well
C. it must increase interest rates to attract foreign investment
D. there must be a surplus in its financial account
E. there must be more exports than imports for the nation.
Answer:
B. it must have a deficit in its financial account as well
Explanation:
Current account deficit is the measure of the a country trade, a country imports and exports the goods. Net effect of both will be deficit or surplus.
If the Payment against the imports are higher than the receipts against the exports then there is a deficit.
If the Payment against the imports are Lower than the receipts against the exports then there is a Surplus.
The Milwaukee Bucks are considering whether they should add an additional vending area, at a cost of $500,000, to the new arena in downtown Milwaukee. They will only make the investment if it will result in an ROR of 15% or higher. The revenue is expected to be between $138,000 and $165,000 per year for five years. Use a present worth analysis to determine if the decision to invest is sensitive to the projected range of revenue.
Answer:
The required cash flow to earn 15% per year is $ 149,157.8
Now, If the expected cash flow is more than $ 149,157.8 per year, they can invest the amount, else it is not suggestible/advisable.
Explanation:
Solution
Given that:
Milwaukee Bucks are considering whether they should add an additional vending area, at a cost of = $500,000
The investment to be made will result in a ROR = 15%
Expected revenue = between $138,000 and $165,000
Now,
The Computation of Required Cash flow per year is stated as follows:
= Initial Investment / PVAF (r%, n )
= $ 500,000 / PVAF (15%, 5)
= $ 500,000 / 3.3522
= $ 149,157.8
Thus,
The required flow of cash to earn 15% per year is $ 149,157.8
If the expected cash flow is more than $ 149,157.8 per year, they can invest the amount, else it is not suggestible.
Suppose that Greece and Switzerland both produce oil and olives. Greece's opportunity cost of producing a crate of olives is 5 barrels of oil while Switzerland's opportunity cost of producing a crate of olives is 10 barrels of oil.
By comparing the opportunity cost of producing olives in the two countries, you can tell that _______ has a comparative advantage in the production of olives and ________ has a comparative advantage in the production of oil.
Suppose that Greece and Switzerland consider trading olives and oil with each other. Greece can gain from specialization and trade as long as it receives more than ________ of oil for each crate of olives it exports to Switzerland. Similarly, Switzerland can gain from trade as long as it receives more than ________ of olives for each barrel of oil it exports to Greece. Based on your answers to the previous question, which of the following terms of trade (that is, price of olives in terms of oil) would allow both Switzerland and Greece to gain from trade?
a. 2 barrels of oil per crate of olives
b. 12 barrels of oil per crate of olives
c. 9 barrels of oil per crate of olives
d. 1 barrel of oil per crate of olives
Answer:
1) Greece
2) Switzerland
3) 5 barrels of oil
3) 1/10 crates of olive
4) B. 12 barrels of oil per crate.
Explanation:
A) Greece forgoes a lesser amount of oil barrels to make the same amount of olive as Switzerland, so it has a comparative advantage in making olive.
B) Switzerland will save more oil if it doesn't produce olives than Greece would save, so it has a comparative advantage in producing barrels of oil.
C) since Greece produces one crate of olive with 5 barrels of oil, it will only gain in any trade trading more than 5 barrels of oil for every crates of olive.
D) since Switzerland produces 1 crate of olive with 10 barrels of oil, it will only gain in a trade trading 1/10 crates of olive for one barrel of oil.
E) only option B will satisfy both countries.
A food worker reheats fried rice
Answer:
d
Explanation:
Huey Company acquires 100% of the stock of Solar Corporation on January 1, 2019, for $2,400,000 cash. As of that date Solar had the following account balances: Book Value Fair value Cash $300,000 $300,000 Accounts receivable 325,000 325,000 Inventory 350,000 400,000 Building-net (10 year life) 1,000,000 900,000 Equipment-net (5 year life) 300,000 400,000 Land 600,000 900,000 Accounts Payable 125,000 125,000 Bonds Payable (Face amount $1,000,000, due 12/31/2023) 2,000,000 2,050,000 Common stock 700,000 Additional paid-in capital 250,000 Retained earnings 880,000 In 2019 and 2020, Solar had net income of $250,000 and $240,000, respectively. In addition, Solar paid dividends of $16,000 in both years. Inventory is assumed to be sold in 2019. Assume straight line amortization/ depreciation for assets and bonds payable. What is the amount of goodwill at date of acquisition?
Answer:
Amount of goodwill $270,000
Explanation:
As per the data given in the question,
Excess of acquisition price $570,000
which is come from
= Total consideration paid - common stock - additional paid in capital - retained earnings
= $2,400,000 - $700,000 - $250,000 - $880,000
= $570,000
Now
Adjustment for difference (fair value minus book value) :
Particulars Book value Fair value Amount
Inventory $350,000 $400,000 $50,000
Building-net $1,000,000 $900,000 ($100,000 )
Equipment-net $300,000 $400,000 $100,000
Land $600,000 $900,000 $300,000
Bonds payable $2,000,000 $2,050,000 ($50,000 )
Total amount $300,000
Now
Amount of goodwill is
= $570,000 - $300,000
= $270,000
Park Corporation is planning to issue bonds with a face value of $750,000 and a coupon rate of 7.5 percent. The bonds mature in 4 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 percent.
Required:
1. Provide the journal entry to record the issuance of the bonds.
2. Provide the journal entry to record the interest payment on June 30 and December 31 of this year.
3. What bonds payable amount will Claire report on this year's December 31 balance sheet?
Answer:
Bond issuance
Dr Cash $725,010.82
Dr Discount on bonds payable $ 24,989.18
Cr bonds payable $750,000
30 June :
Dr interest expense 30,812.96
Cr cash 28,125.00
Dr bonds discount 2,687.96
December 31:
Dr interest expense 30,927.20
Cr cash 28,125.00
Dr bonds discount 2,802.20
Bonds payable at 31st Dec: $ 730,500.98
Explanation:
The price on the bonds issue is computed using pv formula in excel as shown below:
=-pv(rate,nper,pmt,fv)
rate is the semiannual market interest of 4.25% i.e 8.5%*6/12
nper is the number of semiannual coupon payments of the bond which is 4 years multiplied by 2=8
pmt is the semiannual coupon payment=$750,000*7.5%*6/12=$ 28,125.00
fv is the face value of $750,000
=-pv(4.25%,8,28125,750000)=$725,010.82
find attached amortization schedule
discount on bonds payable=$750,000-$725,010.82=$24,989.18
Suppose Chef Plus manufactures cast iron skillets. One model is a 10-inch skillet that sells for $ 35. Chef Plus projects sales of 650 10-inch skillets per month. The production costs are $ 6 per skillet for direct materials, $ 4 per skillet for direct labor, and $ 1 per skillet for manufacturing overhead. Chef Plus has 25 10-inch skillets in inventory at the beginning of July but wants to have an ending inventory equal to 30% of the next month's sales. Selling and administrative expenses for this product line are $ 1 comma 400 per month. How many 10-inch skillets should Chef Plus produce in July?
Answer:
Production Budget = 820 units
Explanation:
Chef Plus Manufacturers
Production Budget
The production budget is calculated by using the following formula.
Sales + Desired Ending Inventory - Opening Inventory= Production Budget
Units
Sales 650
+Desired Ending Inventory (30 % of 650 ) 195
Less Opening Inventory 25
Production Budget 820
The desired ending inventory is calculated by finding the 30 % of 650 units which is given in the question .
Desired Ending Inventory = 30 % of Sales = 30 % of 650 = 195
Also the opening inventory is given for July= 25 units
The office product division in Hyacinth Company reported $11,250 net operating income with $75,000 average operating assets this year. The office product division has a new investment opportunity that would increase net operating income by $4,375 with $35,000 additional investment.
1. Which of the following statements is TRUE given that the company's minimum required rate of return is 10%?
Multiple Choice:
O Regardless of whether the division is evaluated on the basis of ROI or Residual income, the manager will not accept the new investment because it is bad for the company.
O If the division is evaluated on the basis of Residual income, the manager of the office product division would not accept the new investment because it is bad for the company.
O If the division is evaluated on the basis of Residual income, the manager of the office product division would accept the new investment because it is good for the division.
O If the division is evaluated on the basis of ROI, the manager of the office product division would accept the new investment because it is good for the division.
O If the division is evaluated on the basis of ROI, the manager of the office product division would not accept the new investment because it is bad for the company.
Answer:
The true statement is that If the division is evaluated on the basis of Residual Income, the manager of the office product division would accept the new investment because it is good for the division
Explanation:
In order to find out which of the following statements is TRUE given that the company's minimum required rate of return is 10%, we would have to calculate the existing residual income and the post investment residual income as follows:
Existing Post Investment
Income $ 11,250 $15,625
Assets $75,000 $110,000
ROI 15% 14%
Charge on capital $ 7,500.0 $11,000.0
Residual Income $3,750.0 $4,625.0
Given that the Existing Residual Income is $3,750.0 and the Post Investment Residual Income is $4,625.0 If the division is evaluated on the basis of Residual Income, the manager of the office product division would accept the new investment because it is good for the division.
Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,800 client-visits, but its actual level of activity was 3,790 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November: Data used in budgeting: Fixed element per month Variable element per client-visit Revenue - $ 36.40 Personnel expenses $ 30,500 $ 11.40 Medical supplies 1,700 6.80 Occupancy expenses 8,600 2.90 Administrative expenses 6,900 0.20 Total expenses $ 47,700 $ 21.30 Actual results for November: Revenue $ 138,146 Personnel expenses $ 73,672 Medical supplies $ 28,292 Occupancy expenses $ 19,101 Administrative expenses $ 7,427 The activity variance for personnel expenses in November would be closest to:
Answer:
$114 Favorable
Explanation:
For computation of activity variance for personnel expenses first we will find out the planning budget and flexible budget which is shown below:-
Planning Budget = Fixed element of personnel expenses + (Budgeted Client visit × Variable element per client visit of personnel expenses)
= $30,500 + (3,800 × $11.40)
= $30,500 + $43,320
= $73,820
Flexible Budget = Fixed element of personnel expenses + (Actual Client visit × Variable element per client visit of personnel expenses)
= $30,500 + (3,790 × $11.40)
= $30,500 + $43,206
= $73,706
Activity variance = Planning Budget - Flexible Budget
= $73,820 - $73,706
= $114 Favorable
In the Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2020 were as follows.
Budget Actual
Indirect materials $14,000 $13,500
Indirect labor 19,000 19,500
Utilities 10,000 10,500
Supervision 4,000 4,000
All costs are controllable by the department manager.
Required:
1. Prepare a responsibility report for April for the cost center.
Answer and Explanation:
Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2020
Budget Actual Difference
Indirect materials $14,000 $13,500 $500 Favorable
Indirect labor 19,000 19,500 500
Unfavourable
Utilities 10,000 10,500 500 Unfavourable
Supervision 4,000 4,000 0 Neither Favorable nor Unfavourable
Total 47,000 47,500 Unfavourable
Bob Areebob is a recognized French horn player. Bob has played as a freelance musician for several major symphonies. Last year Bob went through bankruptcy and in order to pay his rent for a couple of months took out loans from a small savings institution - Avarice Bank - and pledged his french horn as collateral. He was unable to make the first payment on the loan so the bank was getting ready to take the french horn for non-payment. Bob approached the director of the Gilroy Philarmonic International Symphony - Joe Dogooder - for help - asking him to guarantee payment so he does not lose his french horn. Joe agreed to guarantee the payment - partially because Bob is scheduled as the featured performer at the Classic Polka Festival in Gilroy which Joe manages. Joe called Avarice Bank and said if Bob could not pay, he would, and Avarice accepted his guaranty by phone. Bob played for the Polka Festival; it was a big hit and very successful, but immediately after, left town with Sally Swansong, the well-known international Polka singer/dancer, and their whereabouts are unknown. Avarice has contacted Joe and indicated they have not collected from Bob and they expect him to pay the debt. Joe told Avarice they did not have anything in writing from him (though there are witnesses who heard Joe guarantee payment) and he believes he will not be liable for Bob's debt. Avarice has indicated it will file suit for payment against Joe. Discuss both sides of this case, indicating who should prevail and why. Use the Issue: what is the legal issue/dispute? Decision: who should prevail? Support: support for your decision.
ANSWER:
Issue: Oral agreement; without proper documentation of what was agreed upon.
Decision: Avarice will loss the case, and Joe will be set free by the court.
Support: Because Avarice does not have any valid prove to show that Joe accepted to repay Bob loans in case he fails to pay up, the court will assume Avarice is forging a claim on Joe. A withiness only comes to court to testify the validity of a prove. Because Avarice does not have any prove, the witness is as good as nothing.
The court will dismiss the case because Avarice became unethical by granting the request made by Joe without any signed agreement or recorded call conversation.
You have a $5,000 medical bill and health insurance with a $500 deductible. You also have a 80/20 co-insurance, meaning the insurance pays 80% and the insured pays 20%. What is your total out-of-pocket expense for the original $5,000 bill?
Answer:
$1,400
Explanation:
Out-of-pocket expense refers to the payment you have to make for medical attention costs that are not reimbursed by your insurance like deductibles and coinsurance. In this case, you have to pay a $500 deductible and you are also responsible for the 20% of $4,500 that is the remaining amount as the insurance will cover the 80%. The total out of the pocket expense would be equal to the sum of the deductible plus the 20% of the reamining amount:
Out-of-pocket expense= 500+(4,500*20%)
Out-of-pocket expense= 500+900
Out-of-pocket expense= 1,400
According to this, your total out-of-pocket expense for the original $5,000 bill is $1,400.
Answer:
$1,500
Explanation:
The Refining Department of Crystal Cane Sugar, Inc. had 69 comma 000 tons of sugar to account for in December. Of the 69 comma 000 tons, 55 comma 000 tons were completed and transferred to the Boiling Department, and the remaining 14 comma 000 tons were 60% complete. The materials required for production are added at the beginning of the process. Conversion costs are added equally throughout the refining process. The weightedminusaverage method is used. Calculate the total equivalent units of production for conversion co
Answer:
63,400
Explanation:
As per the given question the solution of total equivalent units of production for conversion cost is provided below:-
To reach the equivalent units of production we will find out the units transferred and units of work in progress
Units transferred = Completed and transferred tons × Complete percentage
= 55,000 × 100%
= 55,000
Units of ending work in progress = Remaining tons × Given percentage
= 14,000 × 60%
= 8,400
Equivalent units of production = Units transferred + Units of ending work in progress
= 55,000 + 8,400
= 63,400
Walters manufactures a specialty food product that can currently be sold for $21.20 per unit and has 19,200 units on hand. Alternatively, it can be further processed at a cost of $11,200 and converted into 11,200 units of Deluxe and 5,200 units of Super. The selling price of Deluxe and Super are $31.80 and $19.20, respectively. The incremental net income of processing further would be: Multiple Choice $37,760. $48,960. $17,200. $43,200. $11,200.
Answer:
$37,760
Explanation:
The income for the current operation, without further processing, is given by:
[tex]I_1 = 19,200*\$21.20\\I_1=\$407,040[/tex]
If the product is further processed at a cost of $11,200, the company would sell 11,200 units at $31,80 each and 5,200 at $19.20 each, for an income of:
[tex]I_2= 11,200*\$31.80+5,200*\$19.20-\$11,200\\I_2=\$444,800[/tex]
Therefore, the incremental net income of processing further would be:
[tex]\Delta I=I_2-I_1=\$444,800-\$407,040\\\Delta I=\$37,760[/tex]
The incremental net income would be $37,760.
You are considering purchasing a warehouse. The cost to purchase the warehouse is $491,000. Renting the equivalent space costs $19,400 per year.
Required:
1. If the annual interest rate is 6.5%, at what rate must rental cost increase each year to make the cost of renting comparable to purchasing? Assume that the rent will be paid at the end of each year.
Answer:
2.55%
Explanation:
Let us think of the rental cost as a growing perpetuity. Therefore Using the formula for the present value of growing perpetuity, we want to find the growth rate g so that:
$491,000=$19,400/6.5%-g
Or
Equivalent 6.5% -$19,400/$491,000
Hence:
6.5% -3.95%
=2.55%
Therefore the rental costs must grow at a rate of 2.55% per year for the cost of renting to be comparable to the cost of purchasing the warehouse.
Currently, Bruner Inc.'s bonds sell for $1,110. They pay a $120 annual coupon, have a 15-year maturity, and a $1,000 par value, but they can be called in 5 years at $1,050. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. What is the difference between this bond's YTM and its YTC
Answer:
0.59%
Explanation:
The yield to maturity can be computed using the rate formula in excel as follows:
=rate(nper,pmt,-pv,fv)
nper is the coupon payments payable by the bond till maturity which is 15
pmt is the coupon paymet of $120
pv is the current market price of $1,110
fv is the face value of $1000
=rate(15,120,-1110,1000)=10.51%
The yield to call can be computed in a similar,while the only difference the future value would now be call price in 5 years which is $1050 and nper is also 5
=rate(5,120,-1110,1050)=9.92%
Difference between YTM to YTC=10.65%-9.92%
=0.59%