Answer:
$444.07
Explanation:
EMI = [P * I * (1+I)^N]/[(1+I)^N-1]
P =loan amount or Principal = 30750
I = Interest rate per month = .0565/12
N = the number of installments = 7*12 = 84
EMI = [30750*.0565/12* (1+(.0565/12))^84]/[(.0565/12))^84-1]
EMI = [30,750 * 0.0565 / 12 * 1.48374877204] / [1.48374877204 - 1]
EMI = 214.819001902 / 0.48374877204
EMI = $444.07
Cairns owns 80 percent of the voting stock of Hamilton, Inc. The parent’s interest was acquired several years ago on the date that the subsidiary was formed. Consequently, no goodwill or other allocation was recorded in connection with the acquisition. Cairns uses the equity method in its internal records to account for its investment in Hamilton.
On January 1, 2011, Hamilton sold $1,300,000 in 10-year bonds to the public at 105. The bonds had a cash interest rate of 8 percent payable every December 31. Cairns acquired 40 percent of these bonds at 96 percent of face value on January 1, 2013. Both companies utilize the straight-line method of amortization.
Prepare the consolidation worksheet entries to recognize the effects of the intra-entity bonds at each of the following dates.
Answer:
hello your question has a missing journal entry table attached below is the entry journal table completely filled
Explanation:
Amount of bonds acquired = 40% of original bond
i) Bonds payable = 40% * 1,300,000
= $520000
purchase price of bonds = $520000 * 96% ( FACE VALUE )
= $499200
hence the annual amortization
(bonds payable - purchase price of bonds ) / 10 years - 2 years
(520000 - 499200 ) / 8 = $20800/8 = $2600
ii) premium on bonds payable
$20800 - $2600 = $18200
cash amount = $520000 * 8% = $41600
intra entity expense and income table is attached below
from the table
iii) intra-entity interest expense = $39000 and the
iv) intra-entity interest income = $44200
v) investment in bonds
purchase price of bonds + annual amortization
= $499200 + $2600 = $501800
the book value on bonds as at 1st January 2011
=$1300000 * 105% = $1365000
Premium on bonds as at January 1st 2011
= $1365000 - $1300000 = $65000
amortization of premium as at January 1st 2011
=( ($65000) / 10 years ) * 2 years
= $13000
hence the controlling interest in bonds payable = $540800
vi) gains on retirement bonds
= $540800 - $499200 = $41600
attached below is the journal entry on 31st December 2013
To make bond purchases, the Fed gets the money __________. Select the correct answer below: exclusively from proceeds it has received from selling bonds in the past
Answer: c. by creating it
Explanation:
Purchasing Bonds is a part of Monetary Policy by the Fed to increase the money supply in the economy. As such, when they purchase those bonds they do it with new money that they have created to be able to increase the supply in the market.
Apart from creating new money, they can also purchase the bonds by creating bank reserves for commercial banks in the country which the banks can then give out as loans to increase the money supply.
Finance balance sheet: KneeMan Markup Company has total debt obligations with book and market values equal to $30 million and $28 million, respectively. It also has total equity with book and market values equal to $20 million and $70 million, respectively. If you were going to buy all of the assets of KneeMan Markup today, how much should you be willing to pay
Answer:
$98 million
Explanation:
Kneeman markup company has a total debt obligation with a book value of $30 million
The market value is $28 million
The total equity has a book value of $20 million and a market value of $70
Therefore, the price that you should be willing today can be calculated as follows
Debt obligation market value+total equity market value
= $28 million + $70 million
= $98 million
Hence the amount that you should be willing to pay today is $98 million
Leslie McCormack is in the spring quarter of her freshman year of college. She and her friends already are planning a trip to Europe after graduation in a little over three years. Leslie would like to contribute to a savings account over the next three years in order to accumulate enough money to take the trip. Assume an interest rate of 16%, compounded quarterly. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) How much will she accumulate in three years by depositing $520 at the end of each of the next 12 quarters, beginning three months from now
Answer:
$7,813.52
Explanation:
future value = quarterly contribution x annuity factor
quarterly contribution = $520
total quarterly contributions = 3 x 4 = 12 periods
interest rate = 16% / 4 = 4% compounded quarterly
future value annuity factor, 4%, 12 periods = 15.026
future value = $520 x 15.026 = $7,813.52
Lusk Corporation produces and sells 15,900 units of Product X each month. The selling price of Product X is $29 per unit, and variable expenses are $23 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $71,000 of the $109,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be:__________
A) ($57,400)
B) $51,600
C) $13,600
D) ($51,600)
The following information is taken from Reagan Company's December 31 balance sheet:
Cash and cash equivalents $8,419
Accounts receivable 70,422
Merchandise inventories 60,362
Prepaid expenses 4,100
Accounts payable $14,950
Notes payable 86,638
Other current liabilities 9,500
If net credit sales for the current year were $612,000, what is the firm's days' sales uncollected for the year?
Answer:
Firm’s sales uncollected for year is 42 days.
Explanation:
Account receivable turnover ratio = $621,000 / $70,422
Account receivable turnover ratio = 8.69
Thus, accounts receivable turnover ratio is 8.69
Average collection period = 365 / Account receivable turnover ratio
Average collection period = 365 days / 8.69
Average collection period = 42.00
Thus, firm’s sales uncollected for year is 42 days.
Answer:
42 days
Explanation:
Compute Days’ Sales Uncollected
Accounts Receivable / Net Sales x 365
70,422 / 612,000 x 365 = 42
Which of the following statements regarding partnerships losses suspended by the tax basis limitation is true?
a. Partnership losses must be used only in the year the losses are created.
b. Partnership losses may be carried back 2 years and carried forward 5 years.
c. Partnership losses may be carried forward indefinitely.
d. Partnership losses may be carried back 2 years and carried forward 20 years.
Answer:
c. Partnership losses may be carried forward indefinitely.
Explanation:
Regarding taxes, the IRS treats partnerships as pass through entities, therefore, if the partners are not able to use the partnership's loss (or losses) to offset any tax basis in their current income statements, they can carry them forward indefinitely (at least theoretically). This can be done until their tax basis is sufficient to offset the losses generated by the partnership.
The incremental approach to budgeting establishes a base amount for all budget items and requires explanation or justification for any budgeted amount above that level. true or false
Answer:
The given statement is "False".
Explanation:
The provided seems to have been a methodical approach that combines the development and execution of the approach throughout the practice. The characteristics including its methodology being the way to maintain ambiguity and transition, its concentration on both small and major judgments, its reliance on both structured and unstructured mechanisms, and therefore its system interfaces.So that the above seems to be the correct solution.
While differing in details, all of the major types of project life cycle models have a series of phases with activities that need to be completed and approvals that must be received before the project can proceed to the next phase. True or False
Answer: True
Explanation:
The project life cycle is simply the path that is taken by a project from its start to the end. A standard project normally has the initiation phase, planning phase, the implementation phase and lastly the closure phase.
All of the major types of project life cycle models have a series of phases with activities that need to be completed and approvals that must be received before the project can proceed to the next phase.
Using the data below for the Ace Guitar Company:
A Region B Region
Sales $767,000 $413,000
Cost of goods sold 291,500 156,900
Selling expenses 184,100 99,100
Service department expenses
Purchasing $198,200
Payroll accounting 132,200
Allocate service department expenses proportional to the sales of each region. Determine the divisional income from operations for the A and B regions. For interim calculations, round percentages to one decimal place.
A Region $
B Region $
Answer:
A Region $76,640
B Region $41,360
Explanation:
Calculation to Determine the divisional income from operations for the A and B regions.
First step is to find the Percentage of sales allocations:
Using this formula
Percentage of sales allocation= Sales amount/Total sales ×100
Let plug in the formula
A Region = $767,000 ÷($ $767,000+$413,000)×100
A Region=$767,000/$1,180,000 ×100
A Region= 0.65×100
A Region =65%
B Region =$413,000/($767,000+$413,000)×100
B Region=$413,000/$1,180,000 ×100
B Region=0.35×100
B Region=35%
Second step
Service department expenses=
Purchasing $198,200
Add Payroll accounting $132,200
=$330,400
Third step is the allocation of support department expenses for both A and B Region
A Region = 65% × $330,400 = $214,760
B Region=35%×$330,400=$115,640
Last step is to calculate for the Operating income of both region
A Region Operating Income = $767,000-$291,500-$184,100-$214,760
A Region Operating Income = $76,640
B Region Operating Income =$413,000-$156,900-$99,100-$115,640
B Region Operating Income =$41,360
Therefore tlthe divisional income from operations for the A and B regions will be :
A Region $76,640
B Region $41,360
Keene Co. has 2,000,000 shares of common stock outstanding on December 31, 2018. An additional 100,000 shares are issued on April 1, 2019, and 240,000 more on September 1. On September 1, 2019, Keene issued $3,000,000 of 9% convertible bonds. Each $1,000 bond is convertible into 60 shares of common stock. No bonds have been converted. Assume the bonds are dilutive. The number of shares to be used in computing basic earnings per share and diluted earnings per share on December 31, 2019 is
Answer:
The number of shares to be used in computing basic earnings per share and diluted earnings per share on December 31, 2019 is -
Basic Earnings Per Share = 2,155,000 shares AND
Diluted Earnings Per Share = 2,215,000 shares
Explanation:
Basic Earnings per Share = Earnings Attributable to holders of Common Stocks ÷ Weighted Average Number of Common Stocks Outstanding.
For Basic Earnings per Share calculations, Weighted Average Number of Common Stocks Outstanding will be,
Weighted Average Number of Common Stocks Outstanding :
Outstanding at beginning of the year 2,000,000
Issued April 1, 2019 : (100,000 × 9/12) 75,000
Issued September 1 : (240,000 × 4/12) 80,000
Weighted Average Number of Common Stocks Outstanding 2,155,000
For Diluted Earnings per Share calculations, entity takes into account potential voting right that arise from other financial instruments in issue as follows,
Weighted Average Number of Common Stocks Outstanding :
Outstanding at beginning of the year 2,000,000
Issued April 1, 2019 : (100,000 × 9/12) 75,000
Issued September 1 : (240,000 × 4/12) 80,000
Convertible Bonds : ($3,000,000/ $1,000 × 60) × 4/12 60,000
Weighted Average Number of Common Stocks Outstanding 2,215,000
When a business adopts a strategy of reducing and/or discontinuing production in response to a sustained pattern of losses, it is *
Answer:
preparing to exit operations.
Explanation:
Determine if the following situations describe a game or a decision. Indicate what specific features of the situation caused you to classify itas you did.
a) A party nominee for president of the United States must choose whether to use private financing or public financing for her campaign.
b) China chooses a level of tariffs to apply to American imports.
Answer:
China chooses a level of tariffs to apply to American imports.
ravis, the CEO of Riplon Corp., used company funds to buy a car worth $1 million and a house for $6 million in Santa Fe. This is an example of _____.
Answer:
on-the-job consumption
Explanation:
On-the-job consumption is when senior management staff uses company funds to purchase items that enhances his status.
This is a way to promote the image of the company. When senior management of the company projects an impression of doing well it will attract more customers.
In this case used company funds to buy a car worth $1 million and a house for $6 million in Santa Fe.
Driving the expensive car and living in Santa Fe will grant the CEO access to wealthy people who will be beneficial to Riplon Corp.
If the price level increases by 0.2 percent for every $100 billion increase in the money supply, by how much might prices rise if the Fed increases total reserves by $80 billion and the reserve requirement is 0.05?
Answer:
Prise rise = 3.2%
Explanation:
Given the increase in price level = 0.2%
The increase in total reserve by the Fed = $80
Reserve requirement = 0.05
Increase in money supply ($ billion) = Increase in reserves / Reserve ratio
Increase in money supply = 80 / 0.05 = 1,600
Increase in price level = (Increase in money supply / 100) x 0.2%
Increase in price level = (1,600 / 100) x 0.2%
Increase in price level = 3.2%
K-Too Everwear corporation can manufacture mountain climbing shoes for $35.85 per pair in variable raw material costs and $26.45 per pair in variable labor expense. The shoes sell for $165 per pair. Last year, production was 145,000 pairs. Fixed costs were $1,750,000. What were total production costs?
Answer:
$10,783,500
Explanation:
For determining the total production costs first we need to find out the variable cost per unit which is shown below:-
Variable cost per pair = Variable raw material cost per pair + Variable labor expense per pair
= $35.85 + $26.45
= $62.30
Total production costs = Variable cost per pair × Number of pairs produced + Fixed costs
= $62.30 × 145,000 + $1,750,000
= $9033500 + $1,750,000
= $10,783,500
Each of the following items must be considered in preparing a statement of cash flows (indirect method) for Turbulent Indigo Inc. for the year ended December 31, 2017 State where each item is to be shown in the statement of cash flows, if at all. Items
(a) Plant assets that had cost $20,000 6 years before and were being depreciated on a straight-line basis over 10 years with no estimated scrap value were sold for $5,300.
(b) During the year, 10,000 shares of common stock with a stated value of $10 a share were issued for $43 a share
(c) Uncollectible accounts receivable in the amount of $27,000 were written off against Allowance for Doubtful Accounts.
(d) The company sustained a net loss for the year of $50,000. Depreciation amounted to $22,000, and a gain of $9,000 was realized on the sale of land for $39,000 cash.
(e) A 3-month U.S. Treasury bill was purchased for $100,000. The company uses a cash and cash equivalent basis for its cash flow statement.
(f) Patent amortization for the year was $20,000
(g) The company exchanged common stock for a 70% interest in Tabasco Co. for $900,000.
(h) During the year, treasury stock costing $47,000 was purchased
Answer:
(a) Plant assets that had cost $20,000 6 years before and were being depreciated on a straight-line basis over 10 years with no estimated scrap value were sold for $5,300.
increases cash flows from investing activities(b) During the year, 10,000 shares of common stock with a stated value of $10 a share were issued for $43 a share
increases cash flows from financing activities(c) Uncollectible accounts receivable in the amount of $27,000 were written off against Allowance for Doubtful Accounts.
this corresponds to bad debt expense which is included in the income statement(d) The company sustained a net loss for the year of $50,000. Depreciation amounted to $22,000, and a gain of $9,000 was realized on the sale of land for $39,000 cash.
the net loss and the gain on the sale of land decreases the cash flows from operating activities, while the depreciation expense increases it.the $39,000 received will increase cash flow from investing activities(e) A 3-month U.S. Treasury bill was purchased for $100,000. The company uses a cash and cash equivalent basis for its cash flow statement.
not included in teh cash flow statements(f) Patent amortization for the year was $20,000
increases cash flow from operating activities (in a similar way than depreciation)(g) The company exchanged common stock for a 70% interest in Tabasco Co. for $900,000.
this is a non-cash financing and investing activity(h) During the year, treasury stock costing $47,000 was purchased
decreases cash flow from financing activitiesRegarding the tax treatment of payments to securities holders, it is true that _______________, while ____________________.
Answer: (d)common stock dividends and preferred stock dividends are not tax-deductible; interest is tax-deductible
Explanation:
Here is the complete question:
Regarding the tax treatment of payments to securities holders, it is true that _________, while _________.
(a)interest and preferred stock dividends are not tax-deductible; common stock dividends are tax deductible
(b)interest and preferred stock dividends are tax-deductible; common stock dividends are not tax-deductible
(c)common stock dividends and preferred stock dividends are tax-deductible; interest is not tax-deductible
(d)common stock dividends and preferred stock dividends are not tax-deductible; interest is tax-deductible
Regarding the tax treatment of payments to securities holders, it is true that common stock dividends and preferred stock dividends are not tax-deductible while interest is tax-deductible.
It should be noted that the profit of a company is gotten when the expenses are deducted from the revenue. The dividends are not tax deductible as they are not expenses.
Your company has compiled the following data on the small set of products that comprise the specialty repair parts division. Perform ABC analysis on the data. Over which product do you suggest the firm keep the least control? SKU Annual Demand Unit Cost R11 250 $25 S22 60 $90 T33 100 $500 U44 150 $550 V55 2000 $2 V55 S22 R11 U44 T33
Answer : R11 & U44
Explanation:
Considering the aforementioned data on the small set of products that comprise the specialty repair parts division. After performing ABC analysis on the data. I would suggest R11 and U44 for the firm keep the least control.
Machining Machine-hours $ 247,000 13,000 MHs Machine setups Number of setups $ 60,000 150 setups Product design Number of products $ 56,000 2 products Order size Direct labor-hours $ 260,000 10,000 DLHs Activity Measure Product X08R Product P56L Machine-hours 10,000 3,000 Number of setups 110 40 Number of products 1 1 Direct labor-hours 6,000 4,000 Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product P56L?
Answer:
Manufacturing overhead allocated to product P56L is $249,200
Explanation:
The missing beginning part of the question is as written below
"Bippus Corporation manufactures two products: Product X08R and Product P56L. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products X08R and P56L.
Activity Cost Pool Activity Measure Total Cost Total Activity"
Solution
Predetermined overhead rate = Estimated overhead/Estimated direct labor hours
Predetermined overhead rate = (247,000 + 60,000 + 56000 + 260,000) / 10,000
Predetermined overhead rate = 623,000 / 10,000 dhl
Predetermined overhead rate = 62.30 per direct labor hour
Manufacturing overhead allocated to product P56L
= 4,000 hours * 62.30
= $249,200
PDQ Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake repair. Oil change–related services represent 60% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 40% of its sales and provides a 45% contribution margin ratio. The company’s fixed costs are $15,579,000 (that is, $77,895 per service outlet). (a) Calculate the dollar amount of each type of service that the company must provide in order to break even.
Answer:
Dollar amount of oil changes=$31,158,000
Dollar amount of brake repairs=$20,772,000
Explanation:
Calculation for the dollar amount of each type of service that the company must provide in order to break even.
First step is to find the Total contribution margin for both Oil changes and Brake repairs
Sales 60% 40%
Contribution margin 20% 45
Oil changes Brake repairs
Contribution margin
12%(60%×20%) 18%(40%×45%)
Total contribution margin =30%
(12%+18%)
Second step is to calculate for the Break-even point
Using this formula
Break-even point =Fixed cost/Contribution margin
Where,
Fixed cost =$15,579,000
Contribution margin=30%
Let plug in the formula
Break-even point =$15,579,000/0.30
=$51,930,000
Third step is to calculate for the Dollar amount of oil changes and Brake repairs
Using this formula
Dollar amount of oil changes=Break-even point×Oil changes Sales percentage
Let plug in the formula
Dollar amount of oil changes =($51,930,000×60%)
Dollar amount of oil changes=$31,158,000
Dollar amount of brake repairs
Using this formula
Dollar amount of brake repairs=Break-even point× brake repair Sales percentage
Let plug in the formula
Dollar amount of brake repairs=$($51,930,000×40%)
Dollar amount of brake repairs=$20,772,000
Therefore the Dollar amount of oil changes will be $31,158,000 while the Dollar amount of brake repairs will be $20,772,000.
On January 1, 2021, a company issues $800,000 of 10% bonds, due in ten years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 9%, the bonds will issue at $852,031.
Required:
A. Fill in the blanks in the amortization schedule below:
Date Cash Paid Interest Change in Carrying Value Carrying Value
Expense
01/01/2021
06/30/2021
12/31/2021
2. Record the bond issue on January 1, 2021, and the first two semi-annual interest payments on June 30, 2021, and December 31, 2021.
Answer:
I will start with question 2)
January 1, 2021, bonds issued at a premium
Dr Cash 852,031
Cr Bonds payable 800,000
Cr Premium on bonds payable 52,031
June 30, 2021, first coupon payment
Dr Interest expense 37,398.45
Dr Premium on bonds payable 2,601.55
Cr Cash 40,000
December 31, 2021, first coupon payment
Dr Interest expense 37,398.45
Dr Premium on bonds payable 2,601.55
Cr Cash 40,000
2)
Date Cash Interest Change in Carrying Value
paid expense carrying value
01/01 - - 52,031 852,031
06/30 40,000 37,398.45 49,429.45 849,429.45
12/21 40,000 37,398.45 46,827.90 846,827.90
If you were reviewing a Financial company such as JPMorgan Chase, which of the following metrics is most relevant?
A) Net Interest Margin.
B) Advertising Revenue.
C) Same Store Sales (SSS).
D) Days Sales Outstanding.
Answer: A) Net Interest Margin.
Explanation:
JPMorgan Chase as a financial company would not deal with actual inventory so the Days sales outstanding is not a relevant measure. Neither is the SSS as the company is not a retail chain.
The relevant metric would be the Net Interest Margin which is used to measure the difference between the interest income that a bank or similar financial institution makes vs the interest payments that the company will pay out to its lenders.
From the standpoint of promoting successful strategy execution, it is important that the firm's motivation and reward system:_________
a) be completely free of such elements as tension, pressure, anuiety, job insecurity, and tight deadlines-a no- pressure/no-adverse-consequences work envieonment is essential
b) emphasize only positive types of rewards positive rewards but olso carry out the "up-or our policy for performance that does not not deny newaras to employees who put forth good effort and try hard, hough performance is subpar
c) reduce job insecurity and ve engloyewi an incentive to stay buy and work hard.
Answer: b. emphasize only positive types of rewards positive rewards but olso carry out the "up-or our policy for performance that does not not deny newaras to employees who put forth good effort and try hard, although performance is subpar
Explanation:
From the standpoint of promoting successful strategy execution, it is important that the firm's motivation and reward system emphasize only positive types of rewards positive rewards but also carry out the "up-or our policy for performance that does not not deny newaras to employees who put forth good effort and try hard, although performance is subpar.
This will help increase motivation at work as those that were below par will strive harder an put in more effort.
a) be completely free of such elements as tension, pressure, anxiety, job insecurity, and tight deadlines—a no-pressure/no-adverse-consequences work environment is essential.
What should it emphasize?It should emphasize positive rewards while maintaining fairness and not denying rewards to employees who put forth good effort, even if their performance is subpar.
Reducing job insecurity and providing incentives to stay and work hard will further promote successful strategy execution. Creating a supportive and motivating atmosphere encourages employees to focus on their tasks and achieve long-term success, fostering a positive organizational culture that drives effective strategy implementation.
Option A is correct.
Read more about reward system here:
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Suppose you purchase twelve call contracts on Macron Technology stock. The strike price is $65, and the premium is $2.30. If, at expiration, the stock is selling for $71 per share, what are your call options worth? What is your net profit? (Omit the "$" sign in your response.)
Answer:
Call option worth = 6
Net profit = 3.7
Explanation:
Call option worth and net profit can be calculated as follows
DATA
Strike price = 65
Premium = 2.30
Selling price = 71
Call option worth =?
Net profit =?
Requirement A: Call option worth
Solution
Call option worth = Selling price - strike price
Call option worth = 71 - 65
Caall option worth = 6
Requirement B Net profit
Solution
Net profit = Selling price - (Strike price + Premium)
Net profit = 71 - (65 + 2.3)
Net profit = 71 -67.3
Net profit = 3.7
Answer:
Call option worth = $6
Net Profit = $3.70
Explanation:
The strike price of the option is $65
The amount of premium = $2.30
The selling price = $71
Call option worth = Current Price - Strike price
Call option worth = $71 - $65
Call option worth = $6
Net Profit = Selling Price - (Strike price + Premium)
Net Profit = $71 - ($65 + $2.30)
Net Profit = $71 - $67.30
Net Profit = $3.70
Local nationals are expatriates from their own countries working for a foreign company in another country.
a. True
b. False
Answer:
True
Explanation:
Blaire is an Australian working in India for a french company in view of the given data it would be appropriate to say blaire is a third country national
Which of the following professional services would be considered an attestation engagement ?
A. A consulting service engagement to provide computer-processing advice to a client
B. An engagement to report an statutory requirements.
C. An income tax engagement to prepare federal and state tax returns.
D. The compilation of financial statements from a client's financial records.
Answer: B. An engagement to report an statutory requirements.
Explanation:
An Attestation requirement refers to when the information provided by a client is reviewed and reported on based on the procedures and requirements on how the process should be conducted.
It is usually done by a third party from the Auditor and can be done on internal control functions, and financial forecasts.
Reporting on statutory requirement falls under here as the goal would be to report on the company's compliance with said requirements.
Oriole Company accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost Miles Driven Total Cost January 7,990 $14,170 March 8,510 $14,721 February 7,495 13,503 April 8,200 14,485 Compute the variable cost per mile using the high-low method. (Round answer to 2 decimal places, e.g. 2.25.)
Answer:
$1.2 per mile
Explanation:
Computation of the variable cost per mile using the high-low method
Using this formula
Variable cost per mile = (Highest activity cost - Lowest activity cost)/(Highest activity - Lowest activity)
Let plug in the
Variable cost per mile= (14,721 - 13,503)/(8,510 - 7,495)
Variable cost per mile= 1,218/1,015
Variable cost per mile=$1.2 per mile
Therefore the Variable cost per mile will be $1.2 per mile.
"In connection with a new issue offering of a sought-after tech company issue, the underwriter offers shares to the officers of a manufacturing company that hired the firm 6 months ago to advise on a potential acquisition. Under FINRA rules, this is:"
Answer:
Under FINRA rules, this is:
A conflict of interest.
Explanation:
The underwriter has advised on the potential acquisition and is now offering the shares to the officers of the manufacturing company that hired the underwriting firm. The underwriter should have allowed the officers of the manufacturing company to purchase the shares on their own since it is a public offering and not a private placement. The information is already in the public domain. By offering the shares directly to the officers, it looks as if the underwriter is trying to compensate them for the contract it received earlier.
Comment on the statement from an opportunity cost perspective: "The major cost of going to college is the $15,000 per year in tuition." Assume that a person could have earned $30,000 a year if the person did not go to college.
Answer:
Opportunity cost = $30,000
Explanation:
Opportunity cost is the value of the next best alternative sacrificed in favor of a decision. Opportunity cost is also known as implicit cost. It is the value of the sacrificed made to take a course of action.
For example, should the person in question decides to go to college, that would mean him forfeiting the sum of $30,000 which he would have earned had he decide otherwise.
The accounting cost of going to college is amount is $15,000,the cost to be incurred.
While the economic cost would be the sum of the accounting cost plus the opportunity cost
Economic cost = 30,000 + 15,000 = $45,000