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%

Seranno Inc. budgeted production of 47,000 personal journals in 20Y6. Paper is required to produce a journal. Assume 115 square yards of paper are required for each journal. The estimated January 1, 20Y6, paper inventory is 324,000 square yards. The desired December 31, 20Y6, paper inventory is 243,000 square yards.If paper costs $0.13 per square yard, determine the direct materials purchases budget for 20Y6. If required, round your final answer to the nearest dollar.

Nosloc Corp. had $800,000 net income in 2019. On January 1, 2019 there were 200,000 shares of common stock outstanding. On April 1, 20,000 shares were issued and on September 1, Nosloc bought 30,000 shares of treasury stock. There are 30,000 options to buy common stock at $40 a share outstanding. The market price of the common stock averaged $50 during 2019. The tax rate is 40%. During 2019, there were 40,000 shares of convertible preferred stock outstanding. The preferred is $100 par, pays $3.50 a year dividend, and is convertible into three shares of common stock. Nosloc issued $2,000,000 of 8% convertible bonds at face value during 2018. Each $1,000 bond is convertible into 30 shares of common stock. Instructions Compute diluted earnings per share for 2019. Show all computations.

Linda and Richard are married and file a joint return for 2019. During the year, Linda, who works as an accountant for a national airline, used $2,100 worth of free passes for travel on the airline; Richard used the same amount. Linda and Richard also used $850 worth of employee discount coupons for hotel rooms at the hotel chain that is also owned by the airline. Richard is employed at State University as an accounting clerk. Under a tuition reduction plan, Richard saved $4,000 in tuition fees during 2019. He is studying for a master's degree in business at night while still working full-time. Richard also had $30 worth of personal typing done by his administrative assistant at the University.

What is the amount of fringe benefits that should be included in Linda and Richard's gross income on their 2019 tax return?

onsider three firms identical in all aspects (including the probability with which they discover a shirker), except that monitoring costs vary across the firms. Moni-toring workers is very expensive at Firm A, less expensive at Firm B, and cheapest at Firm C. If all three firms pay efficiency wages to keep their workers from shirk-ing, which firm will pay the greatest efficiency wage? Which firm will pay the smallest efficiency wage?

Cary, Dean, and Madeline are partners in a furniture store. Madeline wants to buy some antiques from an upcoming estate sale. Dean thinks it’s a good idea, but Cary says it is too pricey. Madeline goes ahead and buys the antiques. Which of the following best describes the situation?

A. All three partners must agree on the furniture purchase.B. The estate can hold the partnership liable, but Madeline has breached her duty to the partnership.C. Cary will not be liable to the estate on the antiques contract.D. The partnership and all three partners will be liable on the contract for the antiques.

The property, plant, and equipment section of the Jasper Company’s December 31, 2020, balance sheet contained the following: Property, plant, and equipment: Land $ 120,000 Building $ 840,000 Less: Accumulated depreciation (200,000 ) 640,000 Equipment 180,000 Less: Accumulated depreciation ? ? Total property, plant, and equipment ? The land and building were purchased at the beginning of 2016. Straight-line depreciation is used and a residual value of $40,000 for the building is anticipated.

For each of the following characteristics, check which types of firm it describes: a monopoly firm, a monopolistically competitive firm, both, or neither.
A. Faces the entry of new firms selling similar products.
B. Produces at the minimum average total cost in the long run.
C. Equates marginal revenue and marginal cost.
D. Has marginal revenue less than price.
E. Faces a horizontal demand curve.
F. Earns economic profit in the long run.

Tullius Corporation has received a request for a special order of 8,000 units of product C64 for $50.00 each. The normal selling price of this product is $53.25 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product C64 is computed as follows:

Direct materials $18.10
Direct labor 7.40
Variable manufacturing overhead 5.20
Fixed manufacturing overhead 4.80
Unit product cost $35.50

Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product C64 that would increase the variable costs by $5.00 per unit and that would require a one-time investment of $43,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order.

Required:
How much is the 'effect' (incremental net operating income) on the company's total net operating income through accepting the special order?

iSooky has a spotter truck with a book value of $40,000 and a remaining useful life of five years. At the end of the five years the spotter truck will have a zero salvage value. The market value of the spotter truck is currently $32,000. iSooky can purchase a new spotter truck for $120,000 and receive $31,000 in return for trading in its old spotter truck. The new spotter truck will reduce variable manufacturing costs by $25,000 per year over the five-year life of the new spotter truck. The total increase or decrease in income by replacing the current spotter truck with the new truck (ignoring the time value of money) is:

Keener Incorporated had the following transactions occur involving current assets and current liabilities during February 2017.
Feb. 3 Accounts receivable of $14,000 are collected.
7 Equipment is purchased for $27,800 cash.
11 Paid $2,300 for a 3-year insurance policy.
14 Accounts payable of $12,500 are paid.
18 Cash dividends of $5,700 are declared.
Additional information:
1. As of February 1, 2017, current assets were $130,200, and current liabilities were $49,300.
2. As of February 1, 2017, current assets included $15,900 of inventory and $1,000 of prepaid expenses.
(a) Compute the current ratio as of the beginning of the month and after each transaction.
(b) Compute the acid-test ratio as of the beginning of the month and after each transaction
Round answers to 1 decimal place, e.g. 1.6.)
Current ratio Acid-test ratio
February 1 :1 :1
February 3 :1 :1
February 7 :1 :1
February 11 :1 :1
February 14 :1 :1
February 18 :1 :1

Jmes Graham Manufacturing is a small manufacturer that uses machine-hours as its
activity base for assigned overhead costs to jobs. The company estimated the
following amounts for 2019 for the company, for Job 62 and Job 63:
Company Job 62 Job 63
Direct materials $60,000 $4,500 $7,100
Direct labor $25,000 $2,500 $4,200
Manufacturing
overhead costs $72,000
Machine hours 90,000 1,350 3,100
During 2019, the actual machine-hours totaled 95,000, and actual overhead costs were $71,000. Job 62 consisting of 1,000 units and Job 63 consisting of 2000 units were completed during the month.
Instructions:
A) Compute the predetermined overhead rate.
B) Compute the total manufacturing costs for Job 62 and Job 63.
C) Compute the unit cost of Jobs 62 and 63.
D) How much overhead is over or underapplied for the year for the company? State amount and whether it is over- or underapplied.
E) If Graham Manufacturing sells Job 62 for $14,000 and $18,000 for Job 63, compute the gross profit.

From the following information prepare Manufacturing, Trading and Profit and Loss account for the year ended 31/12/2012. Show clearly the Prime Cost, Factory Cost of completed Production and Cost of Sales.

GH¢
Stock of raw materials- 1,1/12 25,000
Work in progress 1/1/12 16,000
Stock of finished goods 39,000
Purchases of raw materials 48,000
Carriage inwards 3,700
Carriage outwards 5,000
Direct wages (manufacturing) 25,000
Admin. Salaries 12,500
Hire of special machine for production 5,200
Warehouse expenses 2,300
Supervisor’s wages 6,800
Royalties payable 7,500
Factory electricity 1,600
Heat and light 9,200
Returns outwards 7,600
Bad debts 750
Discount allowed 240
Depreciation on Plant 1,750
Plant – Cost 6,600
Transportation 2,000
Delivery van expenses 850
Rent and rates (factory3/4 office ¼) 1,900
Salesman’s commission 3,000
Profit on the sale of scrap 400
10% Loan 15,000
Bank charges 750
Insurance on plant 1,980
Advertising 5,400
Repairs to plant 10,600
Sales
Stock of raw materials at 31/12/12 13,500
Work in progress at factory cost 15,800
Finished goods 24,700

Perpetual Inventory Using FIFO The following units of a particular item were available for sale during the calendar year:

Jan. 1 Inventory 4,000 units at $40

Apr. 19 Sale 2,500 units

June 30 Purchase 4,500 units at $44

Sept. 2 Sale 5,000 units

Nov. 15 Purchase 2,000 units at $46

The firm maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method. Present the data in the form illustrated in Exhibit 3. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column. Schedule of Cost of Goods Sold FIFO Method Purchases Cost of Goods Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost

Jan. 1

Apr. 19

June 30

Sept. 2

Nov. 15

Dec. 31

Balances

More Competition: You are in a head-to-head battle with your arch competitor, Evil Enterprises. One of your co-workers approaches you. He has recently joined your company after having worked for a second competitor for several years. He suggested, "I made notes on all of Evil's bids when I could get the data. They use some clear cost standards. Would you like me to bring my notes to the office tomorrow and let you look through them?

Robin Corporation retires its $800000 face value bonds at 104 on January 1, following the payment of annual interest. The carrying value of the bonds at the redemption date is $829960.
Required:
A) The entry to record the redemption will include __________.
O a debit of $32000 to Premium on Bonds Payable.
O debit of $2040 to Loss on Bond Redemption.
O credit of $32040 to Premium on Bonds Payable.
O credit of $2040 to Loss on Bond Redemption.

The Blue Company is the primary taxi company in the city of Maintown. It uses gasoline at the rate of 106,800 gallons per year. Because this is such a major cost, the company has made a special arrangement with the Amicable Petroleum Company to purchase a huge quantity of gasoline at a reduced price of $2.00 per gallon. The cost of arranging for each order, including placing the gasoline into storage, is $2,000. The cost of holding the gasoline in storage is estimated to be $0.24 per gallon per year.
Required:
a. Using MS Excel Solver, determine the optimal order quantity.

The following data pertains to Xena Corp.: Xena Corp. Total Assets $23,610 Interest-Bearing Debt (market value) $11,070 Average borrowing rate for debt 10.2% Common Equity: Book Value $ 6,150 Market Value $25,830 Marginal Income Tax Rate 37% Market Beta 1.73 Assuming that the risk-free rate is 4.5% and the market risk premium is 6.2%, calculate Xena's cost of equity capital using the capital asset pricing model. Select one: A. 15.2% B. 10.4% C. 13.4% D. 8.9%

Read the case below and answer the questions that follow.
You are attempting to achieve a positive and helpful tone to invite employees to the benefits fair. Your goal is to get as many employees to attend as possible. In this exercise, you will assume the role of a human resources (HR) specialist for your company. Each year, your company holds an open enrollment period during October. During this period, employees can make changes to various benefits, such as health insurance, dental insurance, life insurance, and retirement packages.As part of the open enrollment period, you hold a benefits fair. At this event, representatives for each of your approved insurance and retirement plan vendors are available. Also, representatives from your own office are there to answer questions. To attract employees to the event, you also invite several high-profile speakers to discuss health care and retirement planning.You are writing several messages to employees to invite them to the event. You will send these messages via email and as announcements on the corporate intranet. You expect that you can be particularly influential by posting to the benefits blog, which is one of the most widely accessed blogs on your corporate intranet.
Question:
1. You often find that employees choose a health care plan without carefully considering their options. In fact, sometimes employees realize they are spending too much for health care or that they lack health care options, and they end up blaming you for not informing them sufficiently of their options ahead of time. You want employees to attend the fair and take the time to carefully weigh their options. Which of the following statements is most likely to attract employees to the fair to do so?
Multiple Choice
O This presentation helps you choose which of the five health insurance options works best for your family.
O This presentation discusses the relative benefits and costs of each health care option.
O In this presentation, we provide you with the answers you need about the five health insurance options.

Edward Marshall Boehm, Inc. is a small, high-quality porcelain art objects company that has been very successful, particularly at producing images of vanishing species of birds. These pieces are complex sculptures selling from $100 to over $20,000, and are sought by some sophisticated collectors. The company is run by Mr. and Mrs. Boehm (pronounced "beam"): he is the artist and master of the complex hard paste porcelain manufacturing process; she is in charge of the marketing and financial aspects of the business. The demand for the artistic creations is growing, but many of the company’s past policies no longer seemed appropriate. The Boehms wanted to position the company for the long run. Their stated goals for the company were "to make the world aware of Mr. Boehm’s artistic talent, to help world wildlife causes by creating appreciation and protection for threatened species, and to build a continuing business that could make them comfortably wealthy, perhaps millionaires."
Required:
1. Based on the above information, what competitive strategy could Edward Marshall Boehm pursue and what competitive strategy is not a good option, given its goals?
O Focused differentiation, but not cost leadership
O Broad differentiation, but not global strategy
O Unrelated diversification, but not broad differentiation
O Related diversification, but not the focused cost approach
O Cost leadership, but not transnational strategy

The average exchange rate during 2020 was $.96 = §1. The beginning inventory was acquired when the exchange rate was $1.20 = §1. The ending inventory was acquired when the exchange rate was $.90 = §1 and current market value of the inventory is higher than the acquisition cost. The exchange rate at December 31, 2020 was $.84 = §1. Assuming that the foreign country had a highly inflationary economy, at what amount should the foreign subsidiary's cost of goods sold have been reflected in the U.S. dollar income statement?

A gourmet coffee shop in downtown San Francisco is open 200 days a year and sells an average of 75 pounds of Kona coffee beans a day. (Demand can be assumed to be distributed normally, with a standard deviation of 15 pounds per day.) After ordering (fixed cost 5 $16 per order), beans are always shipped from Hawaii within exactly 4 days. Per-pound annual holding costs for the beans are $3.

a) What is the economic order quantity (EOQ) for Kona coffee beans?

b) What are the total annual holding costs of stock for Kona coffee beans?

c) What are the total annual ordering costs for Kona coffee beans?

d) Assume that management has specified that no more than a 1% risk during stockout is acceptable. What should the reorder point (ROP) be?

e) What is the safety stock needed to attain a 1% risk of stockout during lead time?

f) What is the annual holding cost of maintaining the level of safety stock needed to support a 1% risk?

g) If management specified that a 2% risk of stockout during lead time would be acceptable, would the safety stock holding costs decrease or increase?

The Company is in the process of evaluating a new product using the following information: ∙ A new transformer has three production runs each year, each with $15,000 in setup costs. ∙ The new transformer incurred $45,000 in development costs and is expected to be produced over the next three years. ∙ Direct costs of producing the transformers are $55,000 per run of 5,000 transformers each. ∙ Indirect manufacturing costs charged to each run are $45,000. ∙ Destination charges for each transformer average $2.00. ∙ Customer service expenses average $0.40 per transformer. ∙ The transformers are selling for $20 the first year and will increase by $4 each year thereafter. ∙ Sales units equal production units each year. What is the estimated life-cycle operating income for the first year?

Justin, age 52 and Jamie, age 49 live in California, are married, and file a joint return. Their combined salary for 2019 is $200,000. During 2019, their stock portfolio generated $1,500 in qualified dividends and $500 in non-qualified dividends. They also earned $1,000 on US treasuries. They received a $1,000 state tax refund in 2019. Additionally, Justin’s employer provided Justin with a cafeteria plan. The plan provided $5,000 to use towards health insurance and dental insurance. Justin opted out of the coverage and took the cash because Jamie’s employer provided coverage for both her and her spouse. In 2018, Justin and Jamie itemized their deductions, which were $24,500. In 2019, they paid $9,000 in state income tax, $14,000 in mortgage interest and $3,000 in property tax. What is their taxable income?

a. $182,500 b. $177,000 c. $184,100 d. $183,600 e. None of the choices listed are correct.

David and Daniel formed a partnership. David invested $10,000 in cash; Daniel invested $5,000 in cash and equipment valued at $6,000. The proper entry to record this is which of the following?

On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed amortization schedule below pertains to the bonds: Date Cash Interest Amortization Balance January 1, Year 1 $ 58,998 End of Year 1 $ 3,944 $ 3,717 $ 227 58,771 End of Year 2 ? ? ? 58,530 End of Year 3 ? ? 257 ? End of Year 4 ? 3,671 ? 58,000

Wall Drugs offered an incentive stock option plan to its employees. On January 1, 2021, options were granted for 60,000 $1 par common shares. The exercise price equals the $5 market price of the common stock on the grant date. The options cannot be exercised before January 1, 2024, and expire December 31, 2025. Each option has a fair value of $1 based on an option pricing model. What is the correct entry to record the exercise of 90% the options on April 15, 2024, when the market price of the stock was $8?

At the beginning of the year, Infodeo established its predetermined overhead rate for movies produced during the year by using the following cost predictions: overhead costs, $2,000,000,and direct labor costs, $500,000. At year-end, the companyâs records show that actual overhead costs for the year are $949,700.
Actual direct labor cost had been assigned to jobs as follows.

Movies completed and released $400,000
Movies still in production 36,000
Total actual direct labor cost $436,000

Required:
1) Determine the predetermined overhead rate for the year.
2) Enter the overhead costs incurred and the amounts applied during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied.
3) Prepare the adjusting entry to allocate any over or underapplied overhead to Cost of Goods Sold.

The deadweight loss associated with output less than the competitive level can be determined by A. subtracting the consumer surplus from the producer surplus associated with less output. B. summing the change in the total consumer and producer surplus from moving from the competitive level of output to less output. C. subtracting the competitive level producer surplus from the producer surplus associated with less output. D. summing the consumer and producer surplus associated with less output.

Western Company is preparing a cash budget for June. The company has $12,000 cash at the beginning of June and anticipates $30,000 in cash receipts and $34,500 in cash disbursements during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must: Group of answer choices Borrow $4,500. Borrow $2,500. Borrow $10,000. Repay $7,500. Repay $2,500.

Major Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $130,000. The equipment will have an initial cost of $665,000 and have an 8-year life. The equipment has no salvage value. The hurdle rate is 8%. Ignore income taxes. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.)
a. What is the net present value?
b. What would the net present value be with a 12% hurdle rate? (Negative amounts should be indicated by a minus sign.)
c. Based on the NPV calculations, in what range would the equipment’s internal rate of return fall? (Round your answer to 2 decimal places.)