Answer:
1. Amount required to fund the plan = % of injured*Total employees* Annual salary
Amount required to fund the plan = 4%*200 people* $600
Amount required to fund the plan = $4800
2. Amount contributed by each employee = Amount required to fund the plan / Number of employees
Amount contributed by each employee = $4800/200
Amount contributed by each employee = $24
3. Percentage of salary = Amount contributed by each employee / Salary
Percentage of salary = 24/600
Percentage of salary = 0.04
Percentage of salary = 4%
According to Mintzberg, managers averaged ____ written and _____ verbal contacts per day with most of these activities lasting less than ____ minutes. Group of answer choices
Answer:
1. 36
2. 16
3. 9
Explanation:
According to Henry Mintzberg, a who is known as a professor of Management of Studies. In his model commonly referred to as organizational configurations framework, he concluded that, managers averaged THIRTY SIX written and SIXTEEN verbal contacts per day with most of these activities lasting less than NINE minutes.
Hence, in this case, the correct answer is 36 : 16 : 9
Which of the following changes in retained earnings during a period will be reported in the financing activities section of the statement of cash flows? Declaration and payment of a cash dividend during the period. Net income for the period.
Answer:
Net income for the period.
Explanation:
the statement of cash flow is a financial statement which gives a summary of amount of money or money equivalents that are going into a company and also going out of the company. it gives a measurement of how well the cash position is being managed by the company. the net income for the period is going to be reported in the section called financing activities.
Composing powerful paragraphs is essential when striving for clear communication. Familiarize yourself with basic paragraph elements, various paragraph patterns, and strategies for building coherence.
Use the following paragraphs to answer the questions that follow.
Paragraph A: Last week, three of our Xcite executives closed a lucrative merger deal with Editionplus. The merger will add more than 500 accounts to our business and will increase our profits by 39 percent in less than a year. Additionally, the executives met with several Editionplus product designers and agreed on three new computer prototypes that we will produce during the next five years. This means we will expand our business to both Los Angeles and Las Vegas.
Paragraph B: Employee reaction has been mixed about our recent plans to expand to Las Vegas and Los Angeles. Many Xcite employees are concerned that the Los Angeles site will not have the same relaxed corporate environment as the current site. However, this is not the case: The relaxed corporate environment at the San Francisco site will be replicated in Los Angeles. The culture we have developed works for the company and our employees, and we don't plan to change it. Human resources executives are already interviewing San Francisco employees so they can capture and replicate the culture with ease.
Paragraph C: The leadership at the Xcite San Francisco site has been phenomenal during the last ten years. Everyone in senior-level positions has worked his or her way up the corporate ladder and has contributed greatly to the company's success. This team has increased our profits by 6 percent, expanded office space, hired additional IT support, and strengthened our IT infrastructure. These are just a few of this leadership team's many accomplishments. In the next two months, a new leadership team will be formed for the Los Angeles site. This team will consist of transferred employees from the San Francisco site. We will be offering many of you a chance to be part of this move. Additional training will be required for all who are transferring, and moving costs will not be covered. Xcite looks forward to opening another location with excellent products, high profits, and 100 percent employee and customer satisfaction.
Required:
1. Which paragraph or paragraphs use the pivoting approach?
a. A, C
b. B
c. A
2. What is the main idea of Paragraph A?
Answer:
1. Which paragraph or paragraphs use the pivoting approach?
b. BPivoting writing uses the words even though, however, but, in spite off, etc., to pivot back to the main idea of the paragraph. In paragraph B, it starts talking about employee concerns about a bad corporate environment in the new offices (in Los Angeles or Las Vegas), and then it assures that this will not happen. It affirms that the company is taking care of the issue and the corporate environment in LA will be the same as in San Francisco.
2. What is the main idea of Paragraph A?
If informs the reader that the company just closed a merger with Editionplus and that soon profits should increase, new products will developed and the company will grow.
The December 31, 2018, balance sheet of Whelan, Inc., showed long-term debt of $1,420,000, $144,000 in the common stock account, and $2,690,000 in the additional paid-in surplus account. The December 31, 2019, balance sheet showed long-term debt of $1,620,000, $154,000 in the common stock account and $2,990,000 in the additional paid-in surplus account. The 2019 income statement showed an interest expense of $96,000 and the company paid out $149,000 in cash dividends during 2019. The firm’s net capital spending for 2019 was $1,000,000, and the firm reduced its net working capital investment by $129,000.
Required:
What was the firm's 2019 operating cash flow, or OCF?
Answer:
606,000
Explanation:
Operating cash flow (OCF) is a measure of the amount of cash generated by a company's normal business operations. Operating cash flow indicates whether a company can generate sufficient positive cash flow to maintain and grow its operations, otherwise, it may require external financing for capital expansion
Operating Cashflow = Cashflow from assets + Net capital spending + Change in Net working capital
Operating Cashflow =(-265,000) + (1,000,000) + (-129,000)
Operating Cashflow = 606,000
Working
New borrowings = Long term borrowings (2019) - Long term borrowings (2018)
New borrowings = 1,620,000 - 1,420,000
New borrowings = 200,000
Cash flow to creditors = Interest expense - new borrowings
Cash flow to creditors = 96,000 - 200,000
Cash flow to creditors = 104,000
New equity = ((Common stock(2019) + additional paid in surplus(2019)) - (Common stock(2018) + additional paid in surplus(2018))
New equity = ($154,000 + $2,990,000) - ($144,000 + $2,690,000)
New equity = 3,144,000 - 2,834,000
New equity = 310,000
Cashflow to stockholders = Dividend (2019) - new equity
Cashflow to stockholders = 149,000 - 310,000
Cashflow to stockholder = -161,000
Cashflow from assets = Cashflow to creditors + cashflow to stockolders
Cashflow from assets = (-104,000) + ( - 161,000)
Cashflow from assets = -265,000
Presented below is the trial balance of Pina Corporation at December 31, 2017. Debit CreditCash $ 198,550Sales $ 8,103,580Debt Investments (trading) (cost, $145,000) 156,580Cost of Goods Sold 4,800,000Debt Investments (long-term) 300,550Equity Investments (long-term) 278,550Notes Payable (short-term) 93,580Accounts Payable 458,580Selling Expenses 2,003,580Investment Revenue 67,440Land 263,580Buildings 1,041,550Dividends Payable 137,550Accrued Liabilities 99,580Accounts Receivable 438,580Accumulated Depreciation-Buildings 152,000Allowance for Doubtful Accounts 28,580Administrative Expenses 904,440Interest Expense 215,440Inventory 598,550Gain (extraordinary) 84,440Notes Payable (long-term) 901,550Equipment 603,580Bonds Payable 1,001,550Accumulated Depreciation-Equipment 60,000Franchises 160,000Common Stock ($5 par) 1,003,580Treasury Stock 194,580Patents 195,000Retained Earnings 79,550Paid-in Capital in Excess of Par 81,550 Totals $12,353,110 $12,353,110 Prepare a balance sheet at December 31, 2017, for Pina Corporation. (Ignore income taxes).
Answer:
Pina Corporation
Balance Sheet at December 31, 2017
Non - Current Assets
Land $263,580
Buildings $1,041,550
Accumulated Depreciation-Buildings ($152,000) $889,550
Equipment $603,580
Accumulated Depreciation-Equipment ($60,000) $543,580
Debt Investments (long-term) $300,550
Equity Investments (long-term) $278,550
Franchises $160,000
Patents $195,000
Total Non-Current Assets $2,630,810
Current Assets
Inventory $598,550
Debt Investments (trading) (cost, $145,000) $156,580
Accounts Receivable $438,580
Allowance for Doubtful Accounts ($28,580) $410,000
Cash $ 198,550
Total Current Assets $1,363,680
Total Assets $4,051,650
Equity and Liabilities
Equity
Common Stock ($5 par) $1,003,580
Treasury Stock $194,580
Retained Earnings $79,550
Paid-in Capital in Excess of Par $81,550
Total Equity $1,359,260
Liabilities
Non-Current Liabilities
Notes Payable (long-term) $901,550
Bonds Payable $1,001,550
Total Non-Current Liabilities $1,903,100
Current Liabilities
Notes Payable (short-term) $93,580
Accounts Payable $458,580
Dividends Payable $137,550
Accrued Liabilities $99,580
Total Current Liabilities $789,290
Total Liabilities $2,692,390
Total Equity and Liabilities $4,051,650
Explanation:
A Balance Sheet shows the Balance of Assets, Liabilities and Equity as at the Reporting date.
See the Balance Sheet for Pina Corporation prepared above.
The company evaluates all projects by applying the IRR Rule. If the appropriate interest rate is 9%, should the company accept this project?
Answer: The project should be accepted.
Explanation:
The Internal Rate of Revenue is used to evaluate projects before they are accepted. It is a rate that equates the Net Present Value of cashflows to zero.
If the IRR is higher than the Required return then the Project will be accepted because it means that NPV will be higher than zero. The reverse is true.
Given the cashflows in the question, the IRR is;
= 18.8% according to Excel.
With the IRR higher than the required return of 8%, the project should be accepted.
Bramble Corp. will receive $18500 today (January 1, 2020), and also on each January 1st for the next five years (2021 – 2025). What is the present value of the six $18500 receipts, assuming a 10% interest rate?
Answer:
21
Explanation:
What term means an explosive and seemingly uncontrollable inflation in which money loses value rapidly and may even go out of use? A. deflation B. hyperinflation C. stagflation D. maginflation
Answer:
hyperinflation
Explanation:
Hyperinflation is a term in economics that denotes an out-of-control, rise in prices of goods and services . When the inflation rate is rapidly rising, say by more than 50% per month, then it is a case of hyperinflation.
Hence, hyperinflation is an explosive and seemingly uncontrollable inflation in which money loses value rapidly and may even go out of use.
CVP, Not for profit Monroe Classical Music Society is a not-for-profit organization that brings guest artists to the community’s greater metropolitan area. The Music Society just bought a small concert hall in the center of town to house its performances. The mortgage payments on the concert hall are expected to be $2,000 per month. The organization pays its guest performers $1,000 per concert and anticipates corresponding ticket sales to be $2,500 per event. The Music Society also incurs costs of approximately $500 per concert for marketing and advertising. The organization pays its artistic director $50,000 per year and expects to receive $40,000 in donations in addition to its ticket sales.Required1. If the Monroe Classical Music Society just breaks even, how many concerts does it hold?2. In addition to the organization’s artistic director, the Music Society would like to hire a marketing director for $40,000 per year. What is the breakeven point? The Music Society anticipates that the addition of a marketing director would allow the organization to increase the number of concerts to 60 per year. What is the Music Society’s operating income/(loss) if it hires the new marketing director?3. The Music Society expects to receive a grant that would provide the organization with an additional $20,000 toward the payment of the marketing director’s salary. What is the breakeven point if the Music Society hires the marketing director and receives the grant?
Answer:
1. If the Monroe Classical Music Society just breaks even, how many concerts does it hold?
break even = $34,000 / $1,000 = 34 concerts per year
2. In addition to the organization’s artistic director, the Music Society would like to hire a marketing director for $40,000 per year. What is the break even point?
break even = $74,000 / $1,000 = 74 concerts per year
The Music Society anticipates that the addition of a marketing director would allow the organization to increase the number of concerts to 60 per year. What is the Music Society’s operating income/(loss) if it hires the new marketing director?
loss = (60 x $1,000) - $74,000 = $60,000 - $74,000 = -$14,000
3. The Music Society expects to receive a grant that would provide the organization with an additional $20,000 toward the payment of the marketing director’s salary. What is the break even point if the Music Society hires the marketing director and receives the grant?
break even = $54,000 / $1,000 = 54 concerts per year
Explanation:
fixed costs = $24,000 (mortgage) + $50,000 (artistic director) = $74,000
variable costs per concert = $1,000 (artist) - $500 (marketing) = $1,500
revenue = $2,500 per concert
contribution margin per concert = $2,500 - $1,500 = $1,000
other revenues = $40,000 per year
net fixed costs = $74,000 - $40,000 = $34,000
Which franchise model do automobile dealerships usually follow?
Answer:
hope it helps..
Explanation:
Automakers sold vehicles through department stores, by mail order and through the efforts of traveling sales representatives. The prevailing delivery system was direct-to-consumer sales.
Company Owned Company Operated franchise model do automobile dealerships usually follow. These are companies that have been granted a franchise to purchase and resell cars made by particular manufacturers. They are typically found on sites with enough space to accommodate an automobile showroom as well as a small garage for upkeep and repairs.
What is the difference between a franchise and a dealership?A licensed dealer functions much like a retail distributor. Dealers have more freedom when it comes to the layout of their stores and the products they offer, while franchisees are subject to a set of corporate regulations. The majority of the time, a dealer will sell the same goods and have the parent company's name and logo.
The business model for franchises. You can run a business if you buy a franchise as an investor or franchisee. You receive a format or system created by the business (franchisor), the right to use its name for a predetermined period of time, and assistance in exchange for paying a franchise fee.
Learn more about franchises here:
https://brainly.com/question/29376853
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Suppose that Brazil imports semiconductors from the United States. The free market price is $23.00 per semiconductor. If the tariff on imports in Brazil is initially 12%, Brazilians pay $_____per semiconductor. One of the accomplishments of the Uruguay Round that took place between 1986 and 1993 was significant across-the-board tariff cuts for industrial countries, as well as many developing countries. Suppose that as a result of the Uruguay Round, Brazil reduces its import tariffs to 6%.
Assuming the price of semiconductors is still $23.00 per semiconductor, consumers now pay the price of $_____per semiconductor. Based on the calculations and the scenarios presented, the Uruguay Round most likely_____in Brazil and______in the United States.
Answer:
Suppose that Brazil imports semiconductors from the United States. The free market price is $23.00 per semiconductor. If the tariff on imports in Brazil is initially 12%, Brazilians pay $25.76 per semiconductor.
= 23 * ( 1 + 12%) = $25.76
One of the accomplishments of the Uruguay Round that took place between 1986 and 1993 was significant across-the-board tariff cuts for industrial countries, as well as many developing countries.
Suppose that as a result of the Uruguay Round, Brazil reduces its import tariffs to 6%.
Assuming the price of semiconductors is still $23.00 per semiconductor, consumers now pay the price of $24.38 per semiconductor.
= 23 * ( 1 + 6%) = $24.38
Based on the calculations and the scenarios presented, the Uruguay Round most likely hurts Producers in Brazil and benefits producers in the United States.
The Uruguay Round reduced the tariff and made the semiconductor cheaper for Brazilians which means they will now import more. This will benefit producers in the US who will now be able to sell more but will hurt producers in Brazil who will sell less if their prices are higher than $24.38.
At January 1, 2021, Cafe Med leased restaurant equipment from Crescent Corporation under a nine-year lease agreement. The lease agreement specifies annual payments of $29,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 thereafter through 2028. The equipment was acquired recently by Crescent at a cost of $207,000 (its fair value) and was expected to have a useful life of 13 years with no salvage value at the end of its life. (Because the lease term is only 9 years, the asset does have an expected residual value at the end of the lease term of $94,113.) Crescent seeks a 12% return on its lease investments. By this arrangement, the lease is deemed to be an operating lease.
Required:
a. What will be the effect of the lease on Cafe Med's earnings for the first year (ignore taxes)?
b. What will be the balances in the balance sheet accounts related to the lease at the end of the first year for Café Med (ignore taxes)?
Answer:
Café Med
a. Café Med's earnings for the first year will be reduced by $58,000 (Operating lease expense for January 1 and December 31, 2021).
b. In Café Med's Balance Sheet, at the end of the first year, there will be a liability balance or Lease Expense Payable of $29,000 for the balance due to be paid on December 31, 2021.
Explanation:
Lease annual payments = $29,000
First payment date = January 1, 2021
Subsequent payment dates = December 31, 2021 to 2028.
Period of lease agreement = 9 years < 75% (9/13)
Cost of equipment to Crescent = $207,000
Lifespan of equipment = 13 years
Residual value at end of the lease term = $94,113
b) Café Med will recognize this lease arrangement as an operating lease. This is based on periodic rental payment on a straight-line basis, which is recorded as an operating lease expense. The liability arising will be for unpaid rentals at the end of the accounting period.
Here are comparative statement data for Crane Company and Sheridan Company, two competitors. All balance sheet data are as of December 31, 2017, and December 31, 2016.
Crane Company Sheridan Company
2017 2016 2017 2016
Net sales $1,855,000 $596,000
Cost of goods sold 1,063,000 291,000
Operating expenses 265,000 89,000
Interest expense 8,600 3,200
Income tax expense 74,900 35,000
Current assets 534,599 $512,352 136,671 $130,326
Plant assets (net) 863,952 820,000 229,154 206,332
Current liabilities 08,773 124,337 57,971 49,661
Long-term liabilities 186,944 147,600 48,577 41,000
Common stock, $10 par 820,000 820,000 196,800 196,800
Retained earnings 282,834 240,416 62,477 49,197
Prepare a vertical analysis of the 2017 income statement data for Crane Company and Sheridan Company.
Answer:
Please see attached.
Explanation:
Please see attached vertical analysis of the 2017 income statement data for Crane company and Sheridan company.
Note: The percent for each company - Crane and Sheridan is arrived at by dividing each item( expense or income) by sales multiplied by 100.
For instance for Crane, the percentage for Gross profit is = ($792,000 / $1,855,000 ) × 100
= 42.7%
Jupiter Explorers has $8,800 in sales. The profit margin is 4 percent. There are 5,300 shares of stock outstanding. The market price per share is $1.60. What is the price-earnings ratio
Answer:
Price earnings ratio = 24.09 (Approx)
Explanation:
Given:
Sale = $8,800
Profit margin = 4% = 0.04
Number of share = 5,300
Market price per share = $1.60
Find:
Price-earnings ratio
Computation:
Earnings Per share = Profit / Number of shares
Earnings Per share = [8,800 x 0.04] / 5300
Earnings Per share = $0.0664
Price earnings ratio = Market price per share / Earnings Per share
Price earnings ratio = 1.60/0.0664
Price earnings ratio = 24.09 (Approx)
At a local business school, there is a toasted submarine sandwich process that uses a conveyor-fed oven. ( See picture below) Alice is the sole operator of the sub making process. In the first step of the process, she spends 2 minutes putting various ingredients in the sub. Then, she puts the sub on a conveyor belt and, over a period of 12 minutes, the conveyor moves the sub from the beginning of the oven to the end of the oven, fully toasting it. After the sub comes out of the oven, Alice spends 1 minute slicing the sandwich and putting it in a box. At most, 5 subs can fit in the oven at once. The toasting time in the oven does not depend on the number of subs in the oven.
Required:
a. Draw a process-flow chart for the sandwich-making process.
b. Calculate the hourly capacity of this sandwich-making process.
c. Suppose another employee is hired to do the slicing and boxing, and Zeynep now only loads the sandwiches with the right ingredients. What is the hourly capacity of this process with the additional employee?
Answer:
b. 20 sandwiches
c. 25 sandwiches
Explanation:
1. I added this diagram of the flow chart as an attachment
2.
Hourly capacity of sandwich making process:
Time it makes to 1 sandwich: 2 + 12 + 1 = 15
The time alice spends when making one sandwich = 2 + 1 = 3
oven uses 12 minutes to process one sandwich, so in 12 minutes, alice can can make 12/3 sandwiches = 4
The Oven can take 5 subs at a time,
So in one hour, the making process
= 60/3 = 20 sandwiches
3.
To calculate Hourly capacity with additional employee:
Alice takes 2 minutes
Additional employees takes 1 minute
Oven uses 12 minutes to make one sandwich
It's only after every 2 minutes Alice can put one sandwich. The oven can take only 5 sandwiches.
So in an hour:
Since oven can take 5
Sandwiches at a time, therefore one sandwich takes,
12 / 5 = 2.4 minutes.
In 1 hour number we have number of processed sandwich as
60 / 2.4 = 25
At hourly capacity with additional employees we have 25 sandwiches
Consider the following scenario:
Cold Goose Metal Works Inc.’s income statement reports data for its first year of operation. The firm’s CEO would like sales to increase by 25% next year.
1. Cold Goose is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT).
2. The company’s operating costs (excluding depreciation and amortization) remain at 70.00% of net sales, and its depreciation and amortization expenses remain constant from year to year.
3. The company’s tax rate remains constant at 40% of its pre-tax income or earnings before taxes (EBT).
4. In Year 2, Cold Goose expects to pay $300,000 and $2,306,475 of preferred and common stock dividends, respectively.
Complete the Year 2 income statement data for Cold Goose, then answer the questions that follow. Round each dollar value to the nearest whole dollar.
Cold Goose Metal Works Inc.
Income Statement for Year Ending December 31
Year 1 $30,000,000 21,000,000 1,200,000 $7,800,000$
Year 2 (Forecasted)
Net sales Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses Operating income (or EBIT) Less: Interest expense Pre-tax income (or EBT) Less: Taxes (40%) Earnings after taxes Less: Preferred stock dividends Earnings available to common shareholders Less: Common stock dividends Contribution to retained earnings 1,200,000 780,000 $7,020,000 2,808,000 $4,212,000s 300,000 $3,912,000 1,895,400 $1,605,525 $2,519,025
Given the results of the previous income statement calculations, complete the following statements:
In Year 2, if Cold Goose has 25,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive____________ ▼ in annual dividends
If Cold Goose has 200,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from __________ in Year 1 to in ________ Year 2
Cold Goose's before interest, taxes, depreciation and amortization (EBITDA) value changed from _______ in Year 1 to in ______ Year 2
It is __________▼ to say that Cold Goose's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual contribution to retained earnings, $1,605,525 and $2,519,025, respectively. This is because ▼ of the items reported in the income statement involve payments and receipts of cash
Answer:
Cold Goose Metal Works Inc.
1. Completion of the Year 2 Income Statement for Cold Goose:
Cold Goose Metal Works Inc.
Income Statement for Year Ending December 31
Year 1 Year 2
(Forecasted)
Net sales $30,000,000 $37,500,000
Less: Operating costs, except depreciation
and amortization 21,000,000 28,125,000
Less: Depreciation & amortization expenses 1,200,000 1,200,000
Operating income (or EBIT) $7,800,000 $8,175,000
Less: Interest expense 780,000 1,226,250
Pre-tax income (or EBT) $7,020,000 $6,948,750
Less: Taxes (40%) 2,808,000 2,779,500
Earnings after taxes $4,212,000 $4,169,250
Less: Preferred stock dividends 300,000 300,000
Earnings for common shareholders $3,912,000 $3,869,250
Less: Common stock dividends 1,895,400 2,306,475
Contribution to retained earnings $1,605,525 $1,562,775
2. Given the results of the previous income statement calculations, complete the following statements:
In Year 2, if Cold Goose has 25,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive____$12________ ▼ in annual dividends .
If Cold Goose has 200,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from ____$19.56______ in Year 1 to in ___$19.35_____ Year 2 .
Cold Goose's before interest, taxes, depreciation and amortization (EBITDA) value changed from _$21,000,000______ in Year 1 to in _$28,125,000_____ Year 2 .
It is __wrong________▼ to say that Cold Goose's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual contribution to retained earnings, $1,605,525 and $1,562,775 ($2,519,025), respectively. This is because not all ▼ of the items reported in the income statement involve payments and receipts of cash
Explanation:
a) Data and Calculations:
Cold Goose Metal Works Inc.
Income Statement for Year Ending December 31
Year 1 Year 2
(Forecasted)
Net sales $30,000,000 $37,500,000
Less: Operating costs, except depreciation
and amortization 21,000,000 28,125,000
Less: Depreciation & amortization expenses 1,200,000 1,200,000
Operating income (or EBIT) $7,800,000 $8,175,000
Less: Interest expense 780,000 1,226,250
Pre-tax income (or EBT) $7,020,000 $6,948,750
Less: Taxes (40%) 2,808,000 2,779,500
Earnings after taxes $4,212,000 $4,169,250
Less: Preferred stock dividends 300,000 300,000
Earnings for common shareholders $3,912,000 $3,869,250
Less: Common stock dividends 1,895,400 2,306,475
Contribution to retained earnings $1,605,525 $1,562,775
b) Forecasts:
1. Sales = $30 million * 1.25 = $37.5 million
2. Operating costs = 75% of sales = $28,125,000 (0.75 * $37.5 million)
3. Interest expense = 15% of EBIT = $1,226,250 (15% * $8,175,000)
4. Taxes = 40% of EBT = $2,779,500 (40% * $6,948,750)
5. Preferred dividend per share = $12 ($300,000/25,000)
6. Earnings per share = $19.56 ($3,912,000/200,000) Year 1 and $19.35 ($3,869,250/200,000) in Year 2
A company has net working capital of $1,996. If all its current assets were liquidated, the company would receive $5,923. What are the company's current liabilities?
Answer:Current Liabilities= $3,927
Explanation:
Net working capital= Current assets-current liabilities
Current Liabilities = Current assets - Net working capital
= $5,923- $1,996
=$3,927
Current liabilities are short term liabilities , debt or obligation of a business which should be due within one year so as to be paid to creditors.
By using focus group feedback, Kraft was able to develop a positioning strategy. Focus groups are what type of research?
Answer:
qualitative research
Explanation:
qualitative research deals with non-numerical data, it involves collection and analysing of data by open question method to gather in-depth information about the service/product situation from the respondent.
It should be noted that, Focus groups are qualitative research type research.
Focus groups can be as well regarded as market research, it is base on the logic of seeking the opinion, view, of people about a particular concept, product/services. It involves sourcing some number of people with purchase history or idea about a product to give "feedback".
Shenandoah Skies is the name of an oil painting by artist Kara Lee. In each of the following cases, determine the amount and character of the taxpayer’s gain or loss on sale of the painting.
A. The taxpayer is Kara Lee, who sold her painting to the Reller Gallery for $6,000.
B. The taxpayer is the Reller Gallery, who sold the painting purchased from Kara to a regular customer for $10,000.
C. The taxpayer is Lollard Inc., the regular customer that purchased the painting from the Reller Gallery. Lollard displayed the painting in the lobby of its corporate headquarters until it sold Shenandoah Skies to a collector from Dallas. The collector paid $45,000 for the painting.
Answer:
a. Kara Lee is the painter so the painting is simply part of her normal business operations in selling it.
Amount is $6,000 and this is a sale.
b. Taxpayer is Reller Gallery who sold the painting as part of their normal business operations.
Profit on Sale = Amount sold - Amount purchased
= 10,000 - 6,000
= $4,000
Amount is $4,000 and the nature is ordinary business income.
c. Lollard Inc sold this painting even though it is not part of their normal operations.
This is therefore a gain.
Gain = 45,000 - 10,000
= $35,000
Amount is $35,000 and is a Capital Gain.
What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 8% of par, and a current market price of (a) $62, (b) $81, (c) $97, and (d) $136
Answer and Explanation:
The computation of the risk premium is shown below:-
Rate of return = Dividend ÷ Current market price of preferred stock
The dividend should be
= $100 × 8%
= $8
a Rate of return = $8 ÷ $62
= 12.90%
b. Rate of return = $8 ÷ $81
= 9.88%
c. Rate of return = $8 ÷ $97
= 8.25%
d. Rate of return = $8 ÷ $136
= 5.88%
On December 31, 2020, Flounder Company signed a $1,278,400 note to Culver Bank. The market interest rate at that time was 10%. The stated interest rate on the note was 8%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Flounder’s financial situation worsened. On December 31, 2022, Culver Bank determined that it was probable that the company would pay back only $767,040 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,278,400 loan.
Required:
a. Determine the amount of cash Flounder received from the loan on December 31, 2020.
b. Prepare a note amortization schedule for Culver Bank up to December 31, 2022.
c. Determine the loss on impairment that Culver Bank should recognize on December 31, 2022.
Answer:
All requirements are solved
Explanation:
An amortization schedule is a complete table of periodic loan payments, showing the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term. Each periodic payment is the same amount in total for each period.
Requirement A
Amount of cash Flounder received from the loan =(1,278,400 x 0.62092) (102,272 x 3.79079)
Amount of cash Flounder received from the loan = 1,181,476
Requirement B
Date Cash Interest Increase in Carrying Amount
Received Revenue Carrying Amount of Note
12/31/20 1,181,476
12/31/21 102,272 118,148 15,876 1,197,352
12/31/22 102,272 119,735 17,463 1,214,815
Requirement C
Loss due to impairment = 1,214,815 - [(767,040 x 0.75131) (102,272 x 2.48685)]
Loss due to impairment = 384,195
The owner of a greenhouse and nursery is considering whether to spend $6,000 to acquire the licensing rights to grow a new variety of rosebush, which she could then sell for $6 each. Per-unit variable cost would be $3. How many rosebushes would she have to produce and sell in order to break even
Answer:
Break-even point in units= 2,000
Explanation:
Giving the following information:
Fixed costs= $6,000
Selling price= $6 each
Unitary variable cost= $3
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 6,000 / 3
Break-even point in units= 2,000
A budget surplus a. occurs when government expenditures exceed tax revenues. b. occurs when tax revenues exceed government expenditures. c. occurs when tax revenues exceed transfer payments. d. occurs when monetary policy works in the opposite direction of fiscal policy
Answer:
b. occurs when tax revenues exceed government expenditures.
Explanation:
A budget deficit occurs when government expenditures exceed tax revenues
Lahey Advertising Company’s trial balance at December 31 shows Supplies $8,800 and Supplies Expense $0. On December 31, there are $1,100 of supplies on hand.
Required:
Prepare the adjusting entry at December 31.
Answer: See attachment
Explanation:
The adjusting entries for Lahey Advertising Company has been solved and attached. It should be noted that the supplies expenses was calculated as:
= $8800 - $1100
= $7700
Kindly check the attachment for further analysis.
On January 1, 2013, Parent Company purchased 80% of the common stock of Subsidiary Company for $280,000. On this date, Subsidiary had total owners' equity of $250,000 (common stock $20,000; other paid-in capital, $80,000; and retained earnings, $150,000). Any excess of cost over book value is due to the under or overvaluation of certain assets and liabilities. Inventory, which was sold in the third quarter, is undervalued $5,000. Land is undervalued $20,000. Buildings and equipment have a fair value which exceeds book value by $30,000, and a 5-year expected life. Bonds payable are overvalued $10,000. The remaining excess, if any, is due to goodwill. Subsidiary had net income of $60,000 and paid $3,000 in dividends during 2013. Parent had net income of $50,000 and paid $1,000 in dividends during 2013. Assume that Parent uses equity method to record its investment.
Required:
a. Prepare a value analysis schedule for this business combination.
b. Prepare the determination and distribution schedule for this business combination
c. Prepare the necessary elimination entries in general journal form.
Answer and Explanation:
Please find answer and explanation attached
Which of the following best defines "Isolationist.?
a. The concept that a whole can derive more value than the combination of the individual parts. A common expression in defining synergy is 1+1 = 3, or each piece derives more value that it would on its own.
b. Two or more systems that depend or support one another, often achieving mutual benefit.
c. The process of international integrating arising from the interchange of world views, products, ideas, and other aspects of culture.
d. The notion that we have certain rights and responsibilities towards each other by the mere fact of being human on Earth.
e. Pertaining to a national (or group) policy of non-interaction with other nations (or groups).
Answer:
e. Pertaining to a national (or group) policy of non-interaction with other nations (or groups).
Explanation:
Isolationist is a strategic approach pertaining to a national (or group) policy of non-interaction with other nations (or groups). This ultimately implies that, an isolationist refers to a country that has a diplomatic policy of non-interaction or avoiding to have any form of alliance with other countries.
Generally, countries choose to practice isolationism because they want to avoid foreign economic commitments, preserve her identity and culture, protect its territory, etc. Between 1641 to 1853, The Tokugawa shogunate of Japan adopted isolationism known as "Kaikin" which made it avoid contact or alliance with other countries. Also, in 1930 China was isolationist by banning all maritime shipping activities.
King Costume uses a periodic inventory system. The company started the month with 6 masks in its beginning inventory that cost $8 each. During the month, King Costume purchased 41 additional masks for $10 each. At the end of the month, King counted its inventory and found that 3 masks remained unsold. Using the LIFO method, its cost of goods sold for the month is:
Answer:
$464
Explanation:
Periodic Inventory method is being used. That means valuation of inventory is done at the end of a specific period.
LIFO method is also used for determining the cost of inventory sold. FIFO stands for Last In First Out.
Calculation of Cost of Goods Sold :
41 unit × $10 = $440
3 units × $8 = $24
Total = $464
The cost of goods sold for the month is: $464
Ballou Corporation declared a cash dividend on December 13, 2018, payable on January 10, 2019. By mistake, the company failed to make a journal entry in December 2018. The effect of this error on the financial statements as of December 31, 2018 were:_____.
a. retained earnings was overstated and liabilities were understated.
b. retained earnings was overstated and cash were understated.
c. retained earnings and liabilities were both understated.
d. retained earnings and liabilities were both overstated.
Answer:
a. retained earnings was overstated and liabilities were understated.
Explanation:
Since in the cash dividend is declared also the same is not recorded by the company
So this error would impact the two account i.e. retained earnings and the liabilities
In this, the retained earning is overstated and the liabilities were understated
Therefore the correct option is a.
And, the rest of the options are wrong
coomer co had net sales of 600000 net income of 35260 and average total assets of 680000 what is the return on total assets
Answer:Return on Total assets ==5.19%
Explanation:
Return on Total assets shows one the idea of the profitability of a company's assets in generating revenue before interest and taxes. it is expressed in percentage and its formula is given as
Return on Assets = Net Income (Earning before interest and taxes) / Average total assets
= 35,260/ 680,000 = 0.05185 x 100
=5.19%
Answer:
coomer heehee
Explanation:
Carla VistaInc. leased a new crane to Martinez Construction under a 5-year, non-cancelable contract starting January 1, 2020. Terms of the lease require payments of $45,500 each January 1, starting January 1, 2020. The crane has an estimated life of 7 years, a fair value of $220,000, and a cost to Carla Vista of $220,000. The estimated fair value of the crane is expected to be $45,000 (unguaranteed) at the end of the lease term. No bargain purchase or renewal options are included in the contract, and it is not a specialized asset. Both Carla Vista and Martinez adjust and close books annually at December 31. Collectibility of the lease payments is probable. Martinez’s incremental borrowing rate is 8%, and Carla Vista’s implicit interest rate of 8% is known to Martinez.
Required:
a. Identify the type of lease involved and give reasons for your classification. Discuss the accounting treatment that should be applied by both the lessee and the lessor.
b. Prepare all the entries related to the lease contract and leased asset for the year 2020 for the lessee and lessor, assuming the following amounts:
1. Insurance $500.
2. Taxes $2,000.
3. Maintenance $650.
4. Straight-line depreciation and salvage value $15,000.
c. Discuss what should be presented in the balance sheet, the income statement, and the related notes of both the lessee and the lessor at December 31, 2020.
Answer:
Lessee's Entries:
Rent expense (Dr.) $45,500
Cash (Cr.) $45,500
Lessor's Entries:
1. Property Tax expense (Dr.) $2,000
Maintenance and Repair Expense (Dr.) $650
Insurance Expense (Dr.) $500
Accounts Payable (Cr.) $3,150
2. Depreciation Expense (Dr.) $ 29,285
Accumulated Depreciation (Cr.) $29,285
3.Cash (Dr.) $45,500
Rent Revenue (Cr.) $45,500
Explanation:
The lease is considered as an operating lease as it does not have bargain purchase option and renewal options. The property ownership is not transferred in this lease.
Depreciation expense:
[ Cost - Salvage Value ] / 7
220,000 - 15000 / 7