Start Inc. has 5,000 shares of 6%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2012. What is the annual dividend on the preferred stock? Group of answer choices $60 per share $30,000 in total $50,000 in total $0.60 per share

Answers

Answer 1

Answer:

$30,000 in total

Explanation:

The annual dividend on preferred stock can be determined based on the dividend rate, in other words, the annual dividend is the dividend rate multiplied by the face value of the preferred stock as shown thus:

annual dividend on preferred stock=number of preferred shares outstanding*par value per share*dividend rate

number of preferred shares outstanding=5,000

par value per share=$100

dividend rate=6%

50,000 shares refer to the number of common stocks outstanding

annual dividend on preferred stock=5000*$100*6%

annual dividend on preferred stock=$30,000

dividend per share=$30000/5000=$6


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Gina is very serious about her budget. As a new manager, she wants to make sure that she is a good steward of her employees, knowing that stress can cause her division to miss their bottom line at the end of the year. When Gina is considering the physiological implications for her workforce, which of the following is she notconsidering?
A) family leave
B) burnout
C) low job satisfaction
D) emotional exhaustion
E) absenteeism

Answers

Answer:

A)family leave

Explanation:

From the question we are informed about Gina who is very serious about her budget. As a new manager, she wants to make sure that she is a good steward of her employees, knowing that stress can cause her division to miss their bottom line at the end of the year. When Gina is considering the physiological implications for her workforce, one of the factor she is not considering is family leave.

physiological implications can be regarded as activities that has effect on organs,systemic functions, emotions

and whole system of the employee.

physiology relates to normal functions as regards to living thing, These effects could influence the performance of employees in carrying out their daily task. It could be burnout, low job satisfaction as well as absenteeism and emotional exhaustion

Cordell Inc. experienced the following events in Year 1, its first year of operation:

Received $59,000 cash from the issue of common stock.
Performed services on account for $81,000.
Paid a $5,900 cash dividend to the stockholders.
Collected $65,000 of the accounts receivable.
Paid $59,000 cash for other operating expenses.
Performed services for $19,000 cash.
Recognized $2,900 of accrued utilities expense at the end of the year.

Required:
a. Identify the events that result in revenue or expense recognition and those which affect the statement of cash flows.
b. Based on your response to Requirement a, determine the amount of net income reported on the 2018 income statement.

Answers

Answer:

Cordell Inc.

a. Events that result in revenue or expense recognition:

Performed services on account for $81,000.

Paid $59,000 cash for other operating expenses.

Performed services for $19,000 cash

Recognized $2,900 of accrued utilities expense at the end of the year.

b. Events that affect the Statement of Cash Flows:

Received $59,000 cash from the issue of common stock.

Paid a $5,900 cash dividend to the stockholders.

Collected $65,000 of the accounts receivable.

Paid $59,000 cash for other operating expenses.

Performed services for $19,000 cash

b. The amount of the net income reported on the 2018 income statement is:

= $38,100.

Explanation:

a) Data and Analysis:

Cash $59,000 Common stock $59,000

Accounts Receivable $81,000 Service Revenue $81,000

Cash Dividend $5,900 Cash $5,900

Cash $65,000 Accounts receivable $65,000

Operating $59,000 Cash $59,000

Cash $19,000 Service Revenue $19,000

Utilities Expense $2,900 Utilities Payable $2,900

Revenue:

Accounts Receivable $81,000

Cash                           $19,000  $100,000

Expenses:

Operating          $59,000

Utilities Expense $2,900           $61,900

Net income                                 $38,100

Erin, a shareholder of Finance Inc., demands the right to inspect corporate records to determine whether management has engaged in self-dealing that impacts the company. The firm refuses the request. On Erin’s challenge, a court is most likely to hold that her request constitutes:________

a. harassment.
b. unreasonable access to trade secrets and other confidential information.
c. a proper purpose.
d. potential abuse.

Answers

Answer:

c. a proper purpose.

Explanation:

Proper purpose is an action taken by a shareholder or member of a corporation that is reasonable related to his position or rights.

With the proper purpose rule there is a constraint on a director's autonomy within an organisation and it provides checks to excesses by the management team.

Erin demands the right to inspect corporate records to determine whether management has engaged in self-dealing that impacts the company.

As a shareholder she is enforcing proper right and the court will uphold this.

A company had net income of $210,000. Depreciation expense is $27,000. During the year, Accounts Receivable and Inventory increased $17,000 and $42,000, respectively. Prepaid Expenses and Accounts Payable decreased $5,000 and $6,000, respectively. There was also a loss on the sale of equipment of $2,000. Cash provided by operating activities was $Placeholder for missing word.How much cash was provided by operating activities?
a. $179000
b. $241000
c. $271000
d. $175000

Answers

Answer:

a. $179000

Explanation:

The computation of the cash provided by operating activities is shown below:

Net Income $2,10,000    

Add : Depreciation expense $27,000    

Add : Loss on sale of equipment $2,000    

Add : Decrese in prepaid expenses $5,000    

Less : Decrease in accounts payable $6,000    

Less : Increse in accounts receivable $17,000    

Less :Increase in inventory $42,000    

Cash provided by operating activities $179,000

A convertible bond is one where a.the issuer can convert from a fixed interest rate to a floating one. b.the issuer can convert it from long-term to short-term. c.the issuer can retire the bond before its specified due date. d.the holder can convert the bond into common stock at a future time.

Answers

Answer:

The answer is D.

Explanation:

The correct answer is D. A convertible bond is the type of bond that the bondholder can convert into the company's common stock or share at a future time. It is a debt(fixed-income) instrument

Option A is wrong. This definition is not known. And same with option B.

You purchased a 20-year par value bond with semiannual coupons at a nominal annual rate of 8% convertible semiannually at a price of 1722.25. The bond can be called at par value X on any coupon date starting at the end of year 15 after the coupon is paid. The price guarantees that you will receive a nominal annual rate of interest convertible semiannually of at least 6%. Calculate X.

a. 1400
b. 1420
c. 1440
d. 1400
e. 1480

Answers

Answer:

1400

Explanation:

The concept par value bond refers to a bond that may be redeemed for its face value.  From the coupon nominal annual rate of 8%, it means the coupon is 4% for half of the year is higher than the effective yield of 3% for 6 month period. As such, the bond sells at a higher premium price.

As a result, the minimum yield rate that contributes to the potential of the bond being called is computed at the initial conceivable call date, which is precisely 15 years after the date of purchase, because it is the most unfavorable period for the bondholder if the call occurs. As a result, the par value X fulfills the following condition:

[tex]1722.25 = 0.04*X*a_{|30|3\%|}+\dfrac{X}{1.03^{30}}[/tex]

Making X the subject:

[tex]X = \dfrac{1722.25}{0.04*a_{|30|3\%|}+1.03^{-30}}[/tex]

Using financial Calculator:

X = 1400.01

X ≅ 1400

A Mike’s Milk estimates gallon milk sales for the first quarter as 12,000 gallons in January, 15,000 in February and 10,000 in March. Mike sells milk for $3.00 per gallon. Complete the following schedule for the first quarter sales budget.
Forecasted gallons January February March
Price Per gallon
Sales Budget

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

A Mike’s Milk estimates gallon milk sales for the first quarter as 12,000 gallons in January, 15,000 in February, and 10,000 in March.

January:

Forecasted gallons= 12,000

Price per gallon= 3

Sales Budget= $36,000

February:

Forecasted gallons= 15,000

Price per gallon= 3

Sales Budget= $45,000

March:

Forecasted gallons= 10,000

Price per gallon= 3

Sales Budget= $30,000

Break-Even Point
Nicolas Inc. sells a product for $59 per unit. The variable cost is $30 per unit, while fixed costs are $171,564.
Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $64
per unit.
a. Break-even point in sales units
units
b. Break-even point if the selling price were increased to $64 per unit
units

Answers

Answer:

The right answer is:

(a) 5916 units

(b) 5046 units

Explanation:

Given:

Sales,

= $59

Variable cost,

= $30

Fixed cost,

= $171,564

Increased sale,

= $64

Now,

(a)

Contribution margin will be:

= [tex]Sales - Variable \ cost[/tex]

= [tex]59-30[/tex]

= [tex]29 \ per \ unit[/tex] ($)

hence,

Breakeven will be:

= [tex]\frac{Fixed \ cost}{Contribution \ margin}[/tex]

= [tex]\frac{171564}{29}[/tex]

= [tex]5916 \ units[/tex]

(b)

Contribution margin will be:

= [tex]Sales-Variable \ cost[/tex]

= [tex]64-30[/tex]

= [tex]34 \ per \ unit[/tex] ($)

hence,

Breakeven will be:

= [tex]\frac{Fixed \ cost}{Contribution \ margin}[/tex]

= [tex]\frac{171564}{34}[/tex]

= [tex]5046 \ units[/tex]

Jelly Inc.'s contribution margin ratio is 62% and its fixed monthly expenses are $49,000. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $140,000?

Answers

Answer:

$37,800

Explanation:

Given the above information, we known that

Contribution margin ratio = Contribution margin / Sales

Contribution margin ratio = $140,000 × 62% = $86,800

Less: Fixed cost

($49,000)

Operating income

$37,800

Therefore, the best estimate of the company's net operating income is $37,800

A rental company is considering the purchase of new trailers to least to customers. Each trailer will cost $20,000 today. Each trailer will bring $10,000.00 in an annual lease for 5 years. The lease is paid at the end of each year. At the end of the 5 years the trailer will have no depreciated or salvage value. The interest to be paid for this investment is 9%. Use this information to complete this table. Would you advise the firm to make this investment at 9%? Why?

Fill out the Table:

Year Future Value Present Value Discount Factor
1
2
3
4
5

Answers

Answer and Explanation:

The computation is shown below;

Year         Future value        present value      Discount factors

1              $10,000.00           $9,170                   0.917

2              $10,000.00          $8,410                  0.841

3               $10,000.00         $7,720                 0.772

4               $10,000.00         $7,080                 0.708

5               $10,000.00         $6,490                0.649

Now

Net present value = -$20,000 + $10,000(PVIFA 9% 5 Years)

= -$20,000 + $10000 × (3.8897)

= -$20,000+ $38,897

 = $18,897

So here the investment should be make as the net present value comes in positive  

Jenny Manufactures sold toys listed at $360 per unit to Jack Inc. for $306, a trade discount of 15 percent. Jack Inc. in turn sells the toys in the market at $335. Jenny should record the receivable and related sales revenue (per unit) at: Group of answer choices $360 $335 $306 $285

Answers

Answer:

$306

Explanation:

Based on the information given Jenny should record the receivable and related sales revenue (per unit) at $306 reason been that we were told JENNY MANUFACTURES SOLD TOYS THAT WAS LISTED AT THE AMOUNT OF $360 PER UNIT TO JACK INC. FOR THE AMOUNT OF $306.

Hence, Jenny will record the RECEIVABLE AND RELATED SALES REVENUE (per unit) at $306.

Three times a year previous donors receive donation cards in the mail from the local zoo. This organization also markets to visitors by sponsoring Make-A-Wish visits from the regional hospitals. What type of marketing did the zoo use

Answers

Question Completion with Options;

a. business-to-consumer (B2C) emphasis

b. business-to-business (B2B) emphasis

c. dual emphasis

Answer:

The type of marketing the zoo used is called:

dual emphasis marketing.

Explanation:

The dual marketing emphasis that the zoo uses embraces both business-to-consumer (B2C) and business-to-business (B2B) emphasis.  While business-to-consumer takes the marketing effort directly to the consumers of the zoo's services, the business-to-business emphasis markets the zoo's services to organizations.  Using a dual emphasis means that the local zoo markets her services to donors and visitors, individual and corporate.

A company had net sales of $30,200 and ending accounts receivable of $4,000 for the current period. Its days' sales uncollected equals:_________ (Use 365 days a year.)a) 7.55 days.b) 59.54 days.c) 63.64 days.d) 48.34 days.e) 40.34 days.

Answers

Answer:

d) 48.34 days

Explanation:

Calculation to determine what Its days' sales uncollected equals

Using this formula

Days' sales uncollected=Ending accounts receivable÷Net sales *365 days

Let plug in the formula

Days' sales uncollected=$4,000÷$30,200*365 days

Days' sales uncollected=48.34 days

Therefore Its days' sales uncollected equals:48.34 days

vThe profit for a product is increasing at a rate of $5600 per week. The demand and cost functions for the product are given by p = 6000 − 25x and C = 2400x + 5200, where x is the number of units produced per week. Find the rate of change of the sales with respect to Larson, Ron. Algebra and Trigonometry (p. 158). Cengage Learning. Kindle Edition.

Answers

Answer:

4 units per week

Explanation:

Calculation to Find the rate of change of sales

First step

dP/dt=5600

Second step

Since the revenue is the product of demand and sales

Hence,

R(x)=px

=(6000-25x)x

=6000x-25x²

Third step is to determine the profit which is the difference of revenue and cost.

Hence,

P(x)=R(x)-C(x)

=6000x-25x²-(2400x+ 5200)

=6000x- 25x² -2400x-5200

=3600x-25x²-5200

Fourth step is to Differentiate the profit with respect to time

dP/dt=3600 dx/dt- 50 dx/dt-0

=50(3600/50-x) dx/dt

=50(72-x) dx/dt

Now let Find the rate of change of sales when dP/dt=5600 and x =44

5600=50(72-44) dx/dt

5600=50(28) dx/dt

5600=1400 dx/dt

dx/dt=5600/1400

dx/dt= 4 units per week

Therefore the rate of change of sales is 4 units per week

A company uses return on investment (ROI) to measure the performance of its business units. The company manufactures and distributes consumer goods. Last year, management identified a possible shortage of raw materials. To mitigate this risk, a large amount of raw material was bought in advance and stored in the manufacturing plant inventory. As a result of this decision, ROI will A. Have an unpredictable change. B. Decrease. C. Increase. D. Not change.

Answers

Answer: B. Decrease

Explanation:

Return on investment refers to the ratio between the net income and investment. It should be noted that a high return on investment implies that the investment's gains compare favourably to the cost.

In this scenario, since a large amount of raw material was bought in advance and stored in the manufacturing plant inventory, this will lead to an increase in the cost of production which therefore will reduce the return in investment.

Therefore, the correct option is B.

Suppose that the price of apples increases by 10%. Within a short amount of time, apple producers are able to increase the quantity of apples supplied by 2%. The higher price has made it worthwhile to use extra labor to reduce waste and spoilage. Is this short run adjustment showing elastic or inelastic supply? Explain.

Answers

Answer:

inelastic

Price elasticity of supply = 2% / 10% = 0.2

the coefficient of elasticity is less than 1. this means that supply is inelastic. the percentage increase in quantity supplied is less than the percentage increase in price

Explanation:

Price elasticity of supply measures the responsiveness of quantity supplied to changes in price of the good.

Price elasticity of supply = percentage change in quantity supplied / percentage change in price  

If the absolute value of price elasticity is greater than one, it means supply is elastic. Elastic supply means that quantity supplied is sensitive to price changes.  

Supply is inelastic if a small change in price has little or no effect on quantity supplied. The absolute value of elasticity would be less than one

supply is unit elastic if a small change in price has an equal and proportionate effect on quantity supplied.  

Kingston Co. uses the percentage-of-receivables basis to record bad debt expense. It estimates that 1% of accounts receivable will become uncollectible. Accounts receivable are $420,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $1,500. (a) Prepare the adjusting journal entry to record bad debt expense for the year. (b) If the allowance for doubtful accounts had a debit balance of $800 instead of a credit balance of $1,500, determine the amount to be reported for bad debt expense​

Answers

Answer:

a. Dr Bad Debts Expense $2,700

Cr Allowance for doubtful accounts $2,700

b. $5000

Explanation:

(a) Prepare the adjusting journal entry to record bad debt expense for the year.

Debit Bad Debts Expense [($420,000 x 1%) – $1,500] $2,700

Credit Allowance for doubtful accounts $2,700

(b) If the allowance for doubtful accounts had a debit balance of $800 instead of a credit balance of $1,500, determine the amount to be reported for bad debt expense​

Bad debt expense = $4200 + $800 = $5000

Robert Solomon and Fernando Flores argue that trust is a choice to believe the trusted person is telling the truth, without independent verification. If bluffing is an accepted rule of business negotiation, can the Solomon and Flores form of trust exist in business?
Does your answer (whatever it is) imply anything about the morality of bluffing?

Answers

Answer:

Yes.

Explanation:

Yes, the Solomon and Flores form of trust exist in business if bluffing is an accepted rule of business negotiation because bluffing is acceptable in the business. If bluffing is an accepted rule of business negotiation then there is no trust formed between Solomon and Flores and the reason for this is that bluffing is a bad act which makes relationship worse between the partners but in this case trust exist in business due to the rule of bluffing.

A company has total fixed costs of $180,000 and a contribution margin ratio of 30%. How much sales are necessary to break even?
a) $540,000
b) $600,000
c) $54,000
d) $126,000

Answers

Answer:

b) $600,000

Explanation:

The break-even sales can be regarded as sales value in which the result makes the firm to report zero profit.

Total fixed costs was given from the question as ( $180,000)

The Contribution margin ratio was give from the question as ( 30%)= 0.3

✓break even point can be calculated as ratio of Total fixed costs to Contribution margin ratio. This can be expressed as

break even point=[Total fixed costs ]/ [ Contribution margin ratio.]

Substitute,

break even point= [ $180,000]/ [0.3]

=$600,000

All-A-Buzz makes three products from a joint production process using honey. Joint cost for the process for the year is $221,760.
Per Unit Incremental
Units of Selling Price Processing Final Sales
Product Output at Split-Off Cost Price
Honey butter 18,000 4.00 $3.00 $6.00
Honey jam 36,000 6.40 4.00 14.00
Honey syrup 1,800 3.00 0.40 3.60
Each container of honey butter, jam, and syrup, respectively, contains 16 ounces, 8 ounces, and 3 ounces of product.
a. Determine which products should be processed beyond the split-off point.
b. Assume honey syrup should be treated as a by-product. Allocate the joint cost based on units produced, weight, and sales value at split-off. Use the net realizable value method in accounting for the by-product. (Round to nearest whole percentage.)

Answers

Answer:

All-A-Buzz Company

a. The products that should processed beyond the split-off point are Honey jam and Honey syrup.

b. Allocation of Joint Cost

                                     Honey butter  Honey jam   Honey syrup  Joint Cost

Units produced                  $71,535       $143,071          $7,154      $221,760

Weight                             $109,850      $109,850        $2,060      $221,760

Sales value at split-off       $51,874      $165,996        $3,890      $221,760

Explanation:

a) Data and Calculations:

Joint cost for the year = $221,760

                                                         Per Unit       Incremental

                       Units of   Weight  Selling Price     Processing     Final Sales

Product           Output                   at Split-Off              Cost             Price

Honey butter  18,000      16               4.00                $3.00              $6.00

Honey jam     36,000        8               6.40                  4.00               14.00

Honey syrup     1,800        3               3.00                  0.40                3.60    

Total              55,800

Cost based on units = $3.97

Units produced:

Honey butter = $71,535 ($221,760 * 18,000/55,800)

Honey jam = $143,071 ($221,760 * 36,000/55,800)

Honey syrup = $7,154 ($221,760 * 1,800/55,800)

Weight:

Honey butter = 288,000 (18,000 * 16)

Honey jam = 288,000 (36,000 * 8)

Honey syrup = 5,400 (1,800 * 3)

Total weight = 581,400

Honey butter = $109,850 ($221,760 * 288,000/581,400)

Honey jam = $109,850 ($221,760 * 288,000/581,400)

Honey syrup = $2,060 ($221,760 * 5,400/581,400)

Sales value at split-off:

Honey butter = $72,000 (18,000 * $4.00)

Honey jam = $230,400 (36,000 * $6.40)

Honey syrup = $5,400 (1,800 * $3.00)

Total sales value at split-off = $307,800

Honey butter = $51,874 ($72,000/$307,800 * $221,760)

Honey jam = $165,996 ($230,400/$307,800 * $221,760)

Honey syrup = $3,890 ($5,400/$307,800 * $221,760)

The products should be processed beyond the split-off point:

Part a)

The products that should be processed beyond the split-off point are :

 Joint cost for the year = $221,760  

                                                       Per Unit       Incremental

                      Units of   Weight  Selling Price     Processing     Final Sales

Product           Output                   at Split-Off              Cost             Price

Honey butter  18,000      16               4.00                $3.00              $6.00

Honey jam     36,000        8               6.40                  4.00               14.00

Honey syrup     1,800        3               3.00                  0.40                3.60    

Total              55,800

Cost based on units = $3.97

Part b : Allocation of Joint Cost  

                                   Honey butter  Honey jam   Honey syrup  Joint Cost  

Units produced                  $71,535       $143,071          $7,154      $221,760

Weight                             $109,850      $109,850        $2,060      $221,760

Sales value at split-off       $51,874      $165,996        $3,890      $221,760

Working notes :

Units produced:

Honey butter = $71,535 ($221,760 * 18,000/55,800)

Honey jam = $143,071 ($221,760 * 36,000/55,800)

Honey syrup = $7,154 ($221,760 * 1,800/55,800)

Weight:

Honey butter = 288,000 (18,000 * 16)

Honey jam = 288,000 (36,000 * 8)

Honey syrup = 5,400 (1,800 * 3)

Total weight = 581,400

Honey butter = $109,850 ($221,760 * 288,000/581,400)

Honey jam = $109,850 ($221,760 * 288,000/581,400)

Honey syrup = $2,060 ($221,760 * 5,400/581,400)  

Sales value at split-off:

Honey butter = $72,000 (18,000 * $4.00)

Honey jam = $230,400 (36,000 * $6.40)

Honey syrup = $5,400 (1,800 * $3.00)

Total sales value at split-off = $307,800

Honey butter = $51,874 ($72,000/$307,800 * $221,760)

Honey jam = $165,996 ($230,400/$307,800 * $221,760)

Honey syrup = $3,890 ($5,400/$307,800 * $221,760)

Learn more :

https://brainly.com/question/15411052?referrer=searchResults

DL variances
Logen Construction builds standard prefabricated wooden frames for walls. Each frame requires five direct labor hours and the standard hourly direct labor rate is $18. During July, the company produced 670 frames and worked 3,310 direct labor hours. Payroll records indicate that workers earned $60,407.50.
a. What were the standard hours for July production?
hours
b. What was the actual hourly wage rate? Round your answer to the nearest cent.
$ per hour
c. Calculate the direct labor variances. Round your answers to the nearest cent.
Labor Rate Variance $
Labor Efficiency Variance $
Total Labor Variance $

Answers

Answer:

Logen Construction

a. Standard hours for July Production = 3,350

b. Actual hourly wage rate = $18.25

c. Direct labor variances:

i. Labor Rate Variance = $827.50 U

ii. Labor Efficiency Variance = $720 F

iii. Total Labor Variance = $107.50 U

Explanation:

a) Data and Calculations:

Direct labor hours per frame = 5 hours

Standard hourly labor rate = $18

Standard direct labor cost per frame = $90 ($18 * 5)

Number of frames produced in July = 670

Actual direct labor hours = 3,310

Actual wages earned by workers = $60,407.50

a. Standard hours for July Production = Actual production unit multiplied by standard hours per unit

= 3,350 (670 * 5) hours

b. Actual hourly wage rate = Actual direct labor cost divided by actual direct labor hours

= $18.25 ($60,407.50/3,310)

c. Direct labor variances:

i. Labor Rate Variance = Standard direct labor rate - Actual direct labor rate * Actual direct labor hours

= $827.50 U ($18 - $18.25) * 3,310

ii. Labor Efficiency Variance = Standard direct labor hours - Actual direct labor hours * Standard Direct Labor Rate

= $720 F (3,350 - 3,310) * $18

iii. Total Labor Variance = Standard Direct Labor Cost - Actual Direct Labor Cost

= $107.50 U ($60,300 - $60,407.50)

Waterways is thinking of mass-producing one of its special-order sprinklers. To do so would increase variable costs for all sprinklers by an average of $0.70 per unit. The company also estimates that this change could increase the overall number of sprinklers sold by 10%, and the average sales price would increase $0.20 per unit. Waterways currently sells 481,000 sprinkler units at an average selling price of $25.20. The manufacturing costs are $5,811,160 variable and $2,155,660 fixed. Selling and administrative costs are $2,673,680 variable and $798,370 fixed. If Waterways begins mass-producing its special-order sprinklers, how would this affect the company

Answers

Answer:

Waterways Corporation

If Waterways begins mass-producing its special-order sprinklers, its net operating income would almost double, increasing by $680,202.

Explanation:

a) Data and Calculations:

Increase in variable costs per unit = $0.70

Increase in number of sprinklers sold = 10%

Increase in average sales price = $0.20

Current sales = 481,000 sprinkler units

Selling price = $25.20

New selling price = $25.40 ($25.20 + $0.20)

New quantity of sprinkler units = 529,100 (481,000 * 1.1)

Increase in variable cost = $370,370 (529,100 * $0.70)

New variable cost = $6,181,530 ($5,811,160 + $370,370)

Income Statements                          Normal    Mass Production

Sales revenue                              $12,121,200   $13,439,140

Variable manufacturing costs       $5,811,160     $6,181,530

Variable selling and admin. costs 2,673,680      2,941,048

Total variable costs                     $8,484,840    $9,122,578

Contribution margin                   $3,636,360    $4,316,562

Fixed costs:

Manufacturing costs                  $2,155,660    $2,155,660

Selling and administrative costs     798,370         798,370

Total fixed costs                        $2,954,030   $2,954,030

Net operating income                  $682,330    $1,362,532

Increase in net operating income = $680,202 ($1,362,532 - $682,330)

A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 7.3%, and sells for $1,170. Interest is paid annually.a. If the bond has a yield to maturity of 10.7% 1 year from now, what will its price be at that time? (Do not round intermediate calculations. Round your anser to nearest whole number.)b. What will be the annual rate of return on the bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.)c. Now assume that interest is paid semiannually. What will be the annual rate of return on the bond?Slightly greater than your part b answerSlightly less than your part b answerd. If the inflation rate during the year is 3%, what is the annual real rate of return on the bond? (Assume annual interest payments.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.)

Answers

Answer:

a. Price 1 year later = $810

b. Annual rate of return on the bond = -24.53%

c. Since -24.79% is lower than -24.53% obtained part b, this implies that annual rate of return is slightly less than our part b answer.

d. Annual real rate of return on the bond = -26.73%

Explanation:

a. If the bond has a yield to maturity of 10.7% 1 year from now, what will its price be at that time? (Do not round intermediate calculations. Round your answer to nearest whole number.)

This can be calculated as follows:

Price 1 year later = Coupon rate * Par value / Yield to maturity * (1 - 1 / (100% + Yield to maturity)^Years to maturity) + Par value / (100% + Yield to maturity)^Years to maturity = 7.3% * 1000 / 10.7% * (1 - 1 / (100% + 10.7%)^9) + 1000 / (100% + 10.7%)^9 = $810

b. What will be the annual rate of return on the bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.)

This can be calculated as follows:

Annual rate of return on the bond = (Price 1 year later + Coupon rate * Par value) / Price now - 1 = (810 + 7.3% * 1000) / 1170 - 1 = -24.53%

c. Now assume that interest is paid semiannually. What will be the annual rate of return on the bond?Slightly greater than your part b answer Slightly less than your part b answer

This can be determined as follows:

Price 1 year later = (Coupon rate / 2) * Par value / (Yield to maturity / 2) * (1 - 1 / (100% + (Yield to maturity / 2))^(Years to maturity * 2)) + Par value / (100% + (Yield to maturity / 2))^(Years to maturity * 2) = (7.3% / 2) * 1000 / (10.7% / 2) * (1 - 1 / (100% + (10.7% / 2))^(9 * 2)) + 1000 / (100% + (10.7% / 2))^(9 * 2) = $807

Annual rate of return on the bond = (Price 1 year later + Coupon rate * Par value) / Price now - 1 = (807 + (7.3% / 2) * 1000) / 1170 - 1 = -24.79%

Since -24.79% is lower than -24.53% obtained part b, this implies that annual rate of return is slightly less than our part b answer.

d. If the inflation rate during the year is 3%, what is the annual real rate of return on the bond? (Assume annual interest payments.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.)

This can be calculated as follows:

Annual real rate of return on the bond = (1 + nominal return) / (1 + inflation)-1 = (1 - 24.53%) / (1 +3 %) - 1 = -26.73%

The following changes took place last year in Pavolik Company’s balance sheet accounts:
Asset and Contra-Asset Accounts Liabilities and Stockholders' Equity Accounts
Cash and cash equivalents $ 20 D Accounts payable $ 62 I
Accounts receivable $ 24 I Accrued liabilities $ 24 D
Inventory $ 58 D Income taxes payable$ 29 I
Prepaid expenses $ 19 I Bonds payable $ 204 I
Long-term investments $ 21 D Common stock $ 96 D
Property, plant, and equipment$ 395 I Retained earnings $ 82 I
Accumulated depreciation $ 82 I
D = Decrease; I = Increase.
Long-term investments that cost the company $21 were sold during the year for $46 and land that cost $45 was sold for $24. In addition, the company declared and paid $18 in cash dividends during the year. Besides the sale of land, no other sales or retirements of plant and equipment took place during the year. Pavolik did not retire any bonds during the year or issue any new common stock.
The company’s income statement for the year follows:
Sales $ 1,020
Cost of goods sold 446
Gross margin 574
Selling and administrative expenses 420
Net operating income 154
Nonoperating items:
Loss on sale of land $ (21 )
Gain on sale of investments 25 4
Income before taxes 158
Income taxes 58
Net income $ 100
The company’s beginning cash balance was $128 and its ending balance was $108.
Required:
1. Use the indirect method to determine the net cash provided by operating activities for the year.
2. Prepare a statement of cash flows for the year.

Answers

Answer:

1. $260

2. $103

Explanation:

1. Calculation to determine the net cash provided by operating activities for the year

PAVOLIK COMPANY

STATEMENT OF CASH FLOWS PARTIAL (USING INDIRECT METHOD)

FOR THE YEAR ENDED

Particulars Amount

Cash flow from operating activities

Net Income $100

Adjustments to reconcile net income to net cash provided by operating activities

Adjustment for non cash effects

Depreciation $82

Loss on sale of land $21

Gain on sale of investments -$25

Change in operating assets & liabilities

Increase in accounts receivable -$24

Decrease in inventory $58

Increase in prepaid expenses -$19

Increase in accounts payable $62

Decrease in accrued liabilities -$24

Increase in income taxes payable $29

Net cash flow from operating activities (a) $260

Therefore Using the indirect method the net cash provided by operating activities for the year is $260

2. Preparation of a statement of cash flows for the year

PAVOLIK COMPANY

STATEMENT OF CASH FLOWS (USING INDIRECT METHOD)

FOR THE YEAR ENDED

Particulars Amount

$

Cash flow from operating activities (a) $260

Cash Flow from Investing activities

Property,plant and equipment purchased -$395

Long term investment sold $46

Land sold $24

Net cash Flow from Investing activities (b) -$325

(-$395+$46+$24)

Cash Flow from Financing activities

Cash dividends paid -$18

Common stock purchased -$96

Bonds issued $204

Net cash Flow from Financing activities (c) $90

(+$204-$18-$96)

Net Change in cash c=a+b+c -$25

Beginning cash balance $128

Closing cash balance $103

($128-$25)

Therefore the statement of cash flows for the year is $103

Để giảm thiểu tỷ lệ thất bại của các sản phẩm hay dịch vụ, các công ty nên

Answers

Answer:  12132313 cool

Explanation:

Consider adopting a cost-reducing technology that lowers annual production costs by $1000 per year (into perpetuity, starting in year 1). If your opportunity cost of time is captured by a discount rate of 5%, what is the present) value of adopting the technology?

Answers

Answer:

$20,000

Explanation:

Present Value of Perpetuity = Annuity / ( Interest rate-Growth rate). Where Annuity=1000, Interest rate=5%, Growth rate=0

Present Value of Perpetuity = $1,000/(0.05-0)

Present Value of Perpetuity = $1,000/0.05

Present Value of Perpetuity = $20,000

So, the present) value of adopting the technology is $20,000.

Crosley Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020. The lease is for an 8-year period and requires equal annual payments of $35,004 at the beginning of each year. The first payment is received on January 1, 2020. Crosley had purchased the machine during 2019 for $160,000. Collectibility of lease payments by Crosley is probable. Crosley set the annual rental to ensure a 6% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Crosley at the termination of the lease.
Instructions:
a. Compute the amount of the lease receivable.
b. Prepare all necessary journal entries for Crosley for 2020.
c. Suppose the collectibility of the lease payments was not probable for Crosley. Prepare all necessary journal entries for the company in 2020.
d. Suppose at the end of the lease term, Crosley receives the asset and determines that it actually has a fair value of $1,000 instead of the anticipated residual value of $0. Record the entry to recognize the receipt of the asset for Crosley at the end of the lease term.

Answers

Answer:

A.$230,410

B. 01-Jan-17

Lease Receivable $230,410

Cost of Goods Sold $160,000

Sales Revenue $230,410

Inventory $160,000

01-Jan-17

Dr Cash $35,004

Cr Lease Receivable $35,004

31-Dec-17

Dr Lease Receivable $11,724

Cr Interest Revenue $11,724

C)01-Jan-17

Dr Cash $35,004

Cr Deposit Liability $35,004

D. Dr Inventory $1,000

Cr Gain on Lease $1,000

Explanation:

A. Computation for the amount of the lease receivable.

PV of lease= PV(rate, nper, pmt, [fv]), [type])

PV of lease= -PV (6%,8,35004, , 1)

PV of lease =$230,410

Therefore the amount of the lease receivable is $230,410

B. Preparation of all necessary journal entries for Crosley for 2020.

01-Jan-17

Lease Receivable $230,410

Cost of Goods Sold $160,000

Sales Revenue $230,410

Inventory $160,000

01-Jan-17

Dr Cash $35,004

Cr Lease Receivable $35,004

31-Dec-17

Dr Lease Receivable $11,724

Cr Interest Revenue $11,724

C. Preparation of all necessary journal entries for the company in 2020.

01-Jan-17

Dr Cash $35,004

Cr Deposit Liability $35,004

D. Preparation to Record the entry to recognize the receipt of the asset for Crosley at the end of the lease term

Dr Inventory $1,000

Cr Gain on Lease $1,000

Total assets were $78,000 and total liabilities were $42,000 at the beginning of the year. Net income for the year was $15,500, and dividends of $5,000 were declared and paid during the year.

Required:
Calculate total stockholders' equity at the end of the year.

Answers

Answer:

$46,500

Explanation:

Accounting equation is stated as :

Assets = Equity + Liabilities

therefore,

Equity = Assets - Liabilities

Equity at Beginning of the Period :

Equity = Assets - Liabilities

           = $78,000 - $42,000

           = $36,000

Equity at end of the Period

Closing Equity Balance = Opening Balance + Net Income - Dividends

                                       = $36,000 + $15,500 - $5,000

                                       = $46,500

A rules-based monetary policy :_______.a. is advocated by activists. b. is advocated by nonactivists. c. could involve a predetermined steady growth rate in the money supply. d. b and c e. all of the above

Answers

Answer:

d. b and c

Explanation:

Monetary policy can be defined as the actions (macroeconomic policies) adopted and undertaken by the central bank of a particular country (Federal Reserve System in the United States of America) to control the money supply and interest rates so as to boost or enhance economic growth.

Basically, monetary policies are used by the central bank to manage inflation, economic growth through long-term interest rates and level of unemployment in a country. In order to boost economic growth, the national government through its central bank introduces monetary policy to increase money supply (liquidity). Also, a monetary policy can be used to prevent inflation through the reduction of money supply at a given period of time.

A rules-based monetary policy is advocated by non-activists and when it's adopted by the central bank of a country, it could involve a predetermined steady growth rate in the money supply because it's implemented based on specific indicator events existing in the economy.

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