Answer:
Missing word "Final shares=? Net asset value=?"
Final shares is computed as follows:
= (Amount invested / NAV per share) * (1 + Fund appreciation)
= ($50,000 / $ 1) * (1 + 0.014)
= $50,000 * 1.014
= $50,700
As know that this is a Money Market Mutual Fund, hence the Net asset value of this fund at the end of the year will be also $1.
Jack and Jill both love hot coffee. Jack likes to keep his coffee hot during the day while Jill doesn't mind drinking room temperature coffee. Jack is willing to spend more money on a thermos than Jill is willing to spend. This example illustrates the following major limitation of employing the Economic Value Creation framework because:________
a. accounting data focus mainly on tangible assets, which are no longer the most important.
b. accounting data are historical and thus backward-looking.
c. determining the value of a good service through the perspective of a consumers is not a simple task because consumers have different spending habits
d. overall macroeconomic factors such as the unemployment rate, and interest and exchange rates all have a direct bearing on stock prices
Answer:
C
Explanation:
Implement a table and re-organize your page contents so that it is displayed within the table (you can organize the table's content as you like).
2) Add one external CSS file and apply it to your 2 pages (the style sheet should have at least Fonts, Color, sizing and background). The CSS should provide a uniform look/feel between the 2 pages.
Answer:
just here for points
Explanation:
iskksns
A firm has to choose between two technologies; both produce same output with one being labor intensive and other being capital intensive. The firm will use labor intensive technology when _________________.
Answer:
The firm will use labor intensive technology when the marginal product of using labor intensive technology is greater than the marginal produce of capital intensive technology
Explanation:
Marginal product is the change in total product when the amount of input used in changed by 1 unit
When choosing which form of technology to use, a firm would choose the technology that yields the highest marginal product
For example, imagine a firm can choose between using labour or capital in its production. When labour is increased frim 10 to 20 units, output increase from 100 to 500 units
when capital is increased frim 10 to 20 units, output increase from 100 to 200 units
Marginal product of labour = 500 - 100 / ( 20 - 10) = 40
Marginal product of capital = (200 - 100) / (20 - 10) = 20
Marginal product of labour is higher than the Marginal product of capital. the firm should be labour intensive
Suppose that the price of labor (PL) is $7 while the price of capital (PK) is $10. Also, suppose that the marginal product of labor (MPL) is 20 while the marginal product of capital (MPK) is 30. What is the best advice for a profit-maximizing firm ?
Answer:
The answer is "use more capital, less labor".
Explanation:
labor price [tex](PL) = \$7\\\\[/tex]
Capital price [tex](PK) = \$10\\\\[/tex]
Marginal product of labor: [tex](MPL) = 20\\\\[/tex]
Marginal product of capital: [tex](MPK) = 30\\\\[/tex]
Calculating the ratio of the product marginal labor and labor price:
[tex]= \frac{MPL}{PL} = \frac{20}{7} = 2.86\\\\[/tex]
Calculating the ratio of the product marginal capital and capital price:
[tex]= \frac{MPK}{PK} = \frac{30}{10} = 3\\\\[/tex]
The company maximises profit using the quantity of work and capital that matches the necessary responsibilities.
[tex]\frac{MPL}{PL} = \frac{MPK}{PK}[/tex]
However, in the given case,
[tex]\frac{MPL}{PL} < \frac{MPK}{PK}[/tex]
In this instance, therefore, the business should raise the quantity of capital and cut the quantity of effort.
A manufacturing shop is designed to operate most efficiently at an output of 950 units per day. In the past month the plant produced 750 units. What was their capacity utilization rate last month? (Round your answer to 1 decimal place.) Capacity utilization rate %
Answer:
78.95%
Explanation:
Capacity utilization rate = Capacity used / Best operating level
Capacity utilization rate = 750 units / 950 units
Capacity utilization rate = 0.789473684
Capacity utilization rate = 78.95%
So, their capacity utilization rate last month is 78.95%
Fern invested $6400 into a continuously compounded account with an interest rate of 1.5%. After 10 years, how much is the account worth
Answer:
FV= $7,435.74
Explanation:
Giving the following information:
Initial investment= $6,400
Interest rate= 1.5%
Number of periods= 10 years
To calculate the value of the account in ten years, we need to use the following formula:
FV= PV*e^(i*n)
FV= 6,400*e^(0.015*10)
FV= $7,435.74
A local distributor for a national tire company expects to sell approximately 10,160 tires of a certain size and tread design next year. Annual carrying cost is $14 per tire and ordering cost is $76. The distributor operates 287 days a year.
a. What is the EOQ
b. How many times per year does the store reorder?
c. What is the length of an order cycle?
d. What is the total annual cost if the EOQ quantity is ordered?
Answer:
Following are the solution to the given points:
Explanation:
Given:
[tex](D) = 10,160\ tires / year\\\\(H) = \$14 / tire\\\\(S) = \$76\\\\work\ days\ number = 287 \ \frac{days}{year}[/tex]
For point a:
[tex]EOQ = \sqrt{(\frac{2DS}{H})}[/tex]
[tex]=\sqrt{(\frac{2\times 10,160\times 14 }{14})}\\\\=\sqrt{({2\times 10,160})}\\\\=\sqrt{20320}\\\\=142.548[/tex]
For point b:
Calculating the order of number of per year [tex]= \frac{D}{EOQ}[/tex]
[tex]=\frac{10,160}{142.548}\\\\=71.27\approx 71[/tex]
therefore, the reorded store 71 times per year
For point c:
Calculating the order cycle length [tex]= (\frac{EOQ}{D}) \times \text{work days number in a year}[/tex]
[tex]= (\frac{142.548}{10,160}) \times287\\\\= 0.0140\times287\\\\=4.018[/tex]
For point d:
[tex]\text{Total annual cost = carrying cost + ordering cost}[/tex]
Carrying cost:
[tex]= (\frac{EOQ}{2}) \times H \\\\= (\frac{142.548}{2}) \times 14 \\\\= 71.274 \times 14 \\\\= \$997.836 \approx 998\\\\\[/tex]
Ordering cost:
[tex]= (\frac{D}{EOQ}) \times S \\\\ = (\frac{10160}{142.548}) \times 76 \\\\ = 71.274\times 76\\\\ = \$5416.824\\\\[/tex]
[tex]\therefore\\\\\text{Total annual cost = Carrying cost + Holding cost}[/tex]
[tex]=998+5416.824\\\\=6414.824[/tex]
MC Qu. 98 Peterson Company estimates that overhead... Peterson Company estimates that overhead costs for the next year will be $6,920,000 for indirect labor and $840,000 for factory utilities. The company uses machine hours as its overhead allocation base. If 80,000 machine hours are planned for this next year, what is the company's plantwide overhead rate
Answer:
Predetermined manufacturing overhead rate= $97 per machine hour
Explanation:
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (6,920,000 + 840,000) / 80,000
Predetermined manufacturing overhead rate= $97 per machine hour
Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one cup of tea, one biscuit, and one magazine. In year one, the basket costs $7.00. In year two, the price of the same basket is $8.00. From year one to year two, there isinflation at an annual rate of_____________ . In year one, $42.00 will buy baskets, and in year two, $42.00 will buy baskets. This example illustrates that, as the price level rises, the value of money___________ .
Answer:
14.3%
6 baskets
5.25
Falls
Explanation:
Inflation is a persistent rise in the general price levels
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
Costs of inflation
Shoe leather cost is when people try to spend money immediately so they would not be holding money for a long time. This is because money loses its value in an inflation.
Menu costs are the costs of changing price constantly as a result of inflation, When there is inflation, prices increases regularly. As a result prices needs to be updated regularly.
Annual rate of inflation = (0.08/0.07) - 1 = 0.143 = 14.3%
Baskets that can be bought in year 1 = 42 / 7 = 6
Baskets that can be bought in year 2 = 42 / 8 = 5.25
$42 buys less basket of goods in year 2. It means that the value of money has declined
Suppose that the reason the jewelry was brand new and at such a bargain price online was because the seller actually stole the jewelry. If the jewelry were stolen, what type of title would Hugo hold when he purchased the jewelry
Answer: d. Void.
Explanation:
The seller stole the jewelry and so does not hold any legal title to the jewelry in the first place. The seller cannot therefore pass something that they do not possess which means that Hugo did not get a title.
Hugo's supposed title is therefore void which means that should the real owner of the jewelry ever find out that he has it, they can simply come back and claim it without needing to pay Hugo for it.
Richards Corporation uses the FIFO method of process costing. The following information is available for October in it's fabricating department: Units: Beginning inventory: 80,000 units, 60% complete as to materials and 20% complete as to conversion. Units started and completed: 250,000 Units completed and transferred out: 330,000 Ending inventory: 30,000 units, 40% complete as to materials and 10% complete as to conversion Costs: Costs in beginning Work in Process - direct materials: $37,200 Costs in beginning Work in process - conversion: $79,700 Costs incurred in October - Direct materials: $646,800 Costs incurred in October: Conversion: $919,300 Calculate the equivalent units of conversion. A. 250,000 B. 317,000 C. 294,000 D. 333,000 E. 342,000
Answer:
B. 317,000
Explanation:
Statement of Equivalent production
Particulars Conversion % Completion Equivalent Conversion
Opening WIP 80,000 80% 64,000
Units started & 250,000 100% 250,000
completed
Ending WIP 30,000 10% 3,000
Equivalent Units 317,000
A 5-year treasury bond with a coupon rate of 8% (paid semiannually) has a face value of $1,000. What is the semiannual coupon payment
Answer:
$40
Explanation:
Coupon payment = Face value * Coupon rate * 1/2
Coupon payment = $1,000 * 8% * 1/2
Coupon payment = $1,000 * 0.08 * 1/2
Coupon payment = $40
So, the semiannual coupon payment is $40.
If five different errands are allocated to five time slots, 12-1pm,1-2pm,2-3pm,3-4pm and 4-5pm, how many distinct schedules are possible
Answer:
120
Explanation:
There are 5 different errands and five different time slots for the errands. We are then required to find in how many ways these errands would be arranged in the time slots schedules.
The number of ways the errands can be arranged in the time slot is 5!
5! = 1×2×3×4×5= 120
Therefore there are 120 different ways to arrange the errands in the times slots schedules(5) available.
g An increase in the interest rate: has no effect on investment. may be caused by a drop in investment demand. increases planned investment because people who make money from interest have more money to invest. reduces planned investment because the interest rate is the cost of borrowing to finance investment projects.
Answer:
reduces planned investment because the interest rate is the cost of borrowing to finance investment projects.
Explanation:
There is an inverse relationship between interest rate and planned investment.
The higher interest rate is, the lower planned investment. This is because interest rate is the cost of borrowing. An higher interest rate means the cost of borrowing would increase.
On the other hand, a lower interest rate increases planned investment. This is because a lower interest rate means that the cost of borrowing would reduce.
The budget director of Feathered Friends Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for December 2016:
Estimated sales for December:
Bird house 3,200 units at $50 per unit
Bird feeder 3,000 units at $70 per unit
Estimated inventories at December 1:
Direct materials:
Wood 200 ft.
Plastic 240 lbs.
Finished products:
Bird house 320 units at $27 per unit
Bird feeder 270 units at $40 per unit
Desired inventories at December 31:
Direct materials:
Wood 220 ft.
Plastic 200 lbs.
Finished products:
Bird house 290 units at $27 per unit
Bird feeder 250 units at $41 per unit
Direct materials used in production:
In manufacture of Bird House:
Wood 0.80 ft. per unit of product
Plastic 0.50 lb. per unit of product
In manufacture of Bird Feeder:
Wood 1.20 ft. per unit of product
Plastic 0.75 lb. per unit of product
Anticipated cost of purchases and beginning and ending inventory of direct materials:
Wood $7.00 per ft.
Plastic $1.00 per lb.
Direct labor requirements:
Bird House:
Fabrication Department 0.20 hr. at $16 per hr.
Assembly Department 0.30 hr. at $12 per hr.
Bird Feeder:
Fabrication Department 0.40 hr. at $16 per hr.
Assembly Department 0.35 hr. at $12 per hr.
Estimated factory overhead costs for December:
Indirect factory wages $75,000
Depreciation of plant and equipment 23,000
Power and light $6,000
Insurance and property tax 5,000
Estimated operating expenses for December:
Sales salaries expense $70,000
Advertising expense 18,000
Office salaries expense 21,000
Depreciation expense—office equipment 600
Telephone expense—selling 550
Telephone expense—administrative 250
Travel expense—selling 4,000
Office supplies expense 200
Miscellaneous administrative expense 400
Estimated other income and expense for December:
Interest revenue $200
Interest expense 122
Estimated tax rate: 30%
1. Prepare asales budget for December.
2. Prepare a production budget for December.
Answer:
1. Sales Budget:
Bird House 3,200 units * $50 per unit = $160,000
Bird feeder 3,000 units * $70 per unit = $210,000
Total Revenue = $370,000
Explanation:
2. Production Budget:
Bird House
Expected units to be sold = 3,200
Less: Desired ending finished goods = 290
Total Units to be produced = 3,490
Less: Beginning Units = 320
Units to be produced = 3,170
Bird Feeder
Expected units to be sold = 3,000
Less: Desired ending finished goods = 250
Total Units to be produced = 3,250
Less: Beginning Units = 270
Units to be produced = 2,980
May 1 Prepared a company check for $450 to establish the petty cash fund.
May 15 Prepared a company check to replenish the fund for the following expenditures made since May 1.
a. Paid $160 for janitorial services.
b. Paid $120 for miscellaneous expenses.
c. Paid postage expenses of $80.
d. Paid $41 to The County Gazette (the local newspaper) for an advertisement.
e. Counted $63 remaining in the petty cash box.
May 16 Prepared a company check for $150 to increase the fund to $600.
May 31 The petty cashier reports that $240 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15.
f. Paid postage expenses of $205.
g. Reimbursed the office manager for business mileage, $103.
h. Paid $34 to deliver merchandise to a customer, terms FOB destination.
May 31 The company decides that the May 16 increase in the fund was too large. It reduces the fund by $120, leaving a total of $480.
Required:
Journalize the entries.
Answer:
Journal Entries:
May 1 Debit Petty Cash $450
Credit Cash $450
To establish the petty cash fund.
May 15 Debit Petty Cash $387
Credit Cash $387
To replenish the fund for expenses.
a. Debit Janitorial Expenses $160
Credit Petty Cash $160
b. Debit Miscellaneous expenses $120
Credit Petty Cash $120
c. Debit Postage expenses $80
Credit Petty Cash $80
d. Debit Advertisement $41
Credit Petty Cash $41
e. Debit Petty Cash $14
Credit Cash overage $14
To recognize the cash overage.
May 16 Debit Petty Cash $150
Credit Cash $150
To increase the petty cash fund to $600.
May 31 Debit Petty Cash $360
Credit Cash $360
To replenish the fund for expenses.
f. Debit Postage expenses $205
Credit Petty Cash $205
g. Debit Transport expense $103
Credit Petty Cash $103
h. Debit Freight-out $34
Credit Petty Cash $34
Debit Shortage $18
Credit Petty Cash $18
May 31 Debit Cash $120
Credit Petty Cash $120
To reduce the petty cash fund to $480.
Explanation:
a) Data and Analysis:
May 1 Petty Cash $450 Cash $450
May 15 Petty Cash $387 Cash $387
a. Janitorial Expenses $160 Petty Cash $160
b. Miscellaneous expenses $120 Petty Cash $120
c. Postage expenses $80 Petty Cash $80
d. Advertisement $41 Petty Cash $41
e. Petty Cash $14 Cash overage $14
May 16 Petty Cash $150 Cash $150
May 31 Petty Cash $360 Cash $360
f. Postage expenses $205 Petty Cash $205
g. Transport expense $103 Petty Cash $103
h. Freight-out $34 Petty Cash $34
Shortage $18 Petty Cash $18
May 31 Cash $120 Petty Cash $120
Capital expenditure decisions are useful for estimating inventory acquisition costs. always involve the acquisition of long-lived assets. consist of a final list of approved projects. all of these answer choices are correct.
Answer:
always involve the acquisition of long-lived assets
Explanation:
Capital expenditures can be regarded as the investments that is made by
companies in order to grow or maintain their business operations.
It can as well be regarded as capital expense and it's explained as money that is been spent by an organization or corporate entity in buying, maintaining as well as improving its fixed assets, these asset could be buildings, equipment, vehicles or land.
It should be noted that Capital expenditure decisions always involve the acquisition of long-lived assets
In the 2008 global financial crisis, many investors considered the US economy a safe place to move their assets What is the predicted impact of this inflow of financial capital to the US, which is a large, open economy, on the US interest rate and the US exchange rate, holding other factors constant Illustrate your answer graphically and explain in words.
Answer:
Good for US interest rate and the US exchange rate.
Explanation:
The predicted impact of this inflow of financial capital to the United states of America is good for the economy as well as for US interest rate and the US exchange rate when the movement of assets occur to the United states of America. The economy of the United states of America gets to be better due to this action of investors. This 2008 global financial crisis greatly damaged the economy of United states of America so this action bring some betterment in the economy.
Below are the account balances for Cowboy Law Firm at the end of December. Accounts Balances Cash $ 3,800 Salaries expense 1,400 Accounts payable 1,800 Retained earnings 4,700 Utilities expense 1,200 Supplies 12,200 Service revenue 7,700 Common stock 4,400 Required: Use only the appropriate accounts to prepare an income statement.
Answer:
Cowboy Law Firm
Income Statement for the year ended 31 December
Service revenue $7,700
Less Expenses :
Salaries expense $1,400
Utilities expense $1,200 ($2,600)
Net Income $5,100
Explanation:
It is important to remember that the income statement accounts for Income and expense items only.
SpyingEyes, Inc., a large data intelligence company, has storage technology at multiple sites that store redundant data from its servers at the main office. What risk management strategies has the company primarily implemented?
Answer:
Avoid it risk management strategies
Explanation:
As the name suggests, In Avoid it risk management strategies the organisation takes every feasible step to stop any mismanagement from happening altogether. In other words, this strategy is based on strict monitoring and preparedness in advance.
Thus, from the above we can conclude that the above case illustrates avoid it risk management strategy.
In a closed economy, saving and investment must be equal, but this is not the case in an open economy. In the following problem, you will explore how saving and investment are connected to the international flow of capital and goods in an economy. Before delving into the relationship between these various components of an economy, you will be asked to recall some relationships between aggregate variables that will be useful in your analysis.
Recall the components that make up GDP. National income (Y) equals total expenditure on the economy's output of goods and services. Thus, where C = consumption, I = investment, G = government purchases, X = exports, M = imports, and NX = net exports:
Y =
Also, national saving is the income of the nation that is left after paying for Therefore, national saving (S) is defined as: S =
Rearranging the previous equation and solving for Y yields Y = . Plugging this into the original equation showing the various components of GDP results in the following relationship:
S =
This is equivalent to S =, since net exports must equal net capital outflow (NCO, also known as net foreign investment).
Now suppose that a country is experiencing a trade surplus. Determine the relationships between the entries in the following table, and enter these relationships using the following symbols: > (greater than), < (less than), or = (equal to).
Answer:
a. Y = C + I + G + NX
b. National saving is the income of the nation that is left after paying for current consumption (C) and government purchases (G).
c. S = Y - C - G
d. Y = S + C + G
e. S = I + NX
f. S = I + NCO
g. Outcomes of a Trade Surplus
Exports > Imports
Net Exports > 0
C + I + G < Y
Saving > Investment
Net Capital Outflow > 0
Explanation:
a. Y = C + I + G + X - M …………………. (1)
If we assumed X is greater than M, we have:
NX = X - M
Substituting NX = X - M into equation (1), we have:
Y = C + I + G + NX
b. Also, national saving is the income of the nation that is left after paying for current consumption (C) and government purchases (G).
c. Therefore, national saving (S) is defined as: S = Y - C - G.
d. Rearranging the previous equation and solving for Y yields Y = S + C + G.
e. Plugging this into the original equation showing the various components of GDP results in the following relationship:
S + C + G = C + I + G + NX
S = C + I + G + NX - C - G
S = I + NX
f. This is equivalent to S = I + NCO, since net exports must equal net capital outflow (NCO, also known as net foreign investment).
g. Now suppose that a country is experiencing a trade surplus. Determine the relationships between the entries in the following table, and enter these relationships using the following symbols: > (greater than), < (less than), or = (equal to).
Note: The omitted table in the question given as follows:
Outcomes of a Trade Surplus
Exports ____ Imports
Net Exports _____ 0
C + I + G _____ Y
Saving ____ Investment
Net Capital Outflow ___ 0
Therefore, the answer is given as follows:
Outcomes of a Trade Surplus
Exports > Imports
Net Exports > 0
C + I + G < Y
Saving > Investment
Net Capital Outflow > 0
MC Qu. 120 Dallas Company uses a job order... Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $4,160,000 (260,000 hours at $16/hour) and that factory overhead would be $1,560,000 for the current period. At the end of the period, the records show that there had been 240,000 hours of direct labor and $1,260,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead rate
Answer:
See below
Explanation:
Per the given details, predetermined overhead is be calculated as seen below
Predetermined overhead = (Estimated factory overhead / Estimated direct labor hour) × 100
Estimated factory overhead = $1,560,000
Estimated direct labor hour = 260,000
Predetermined overhead = )$1,560,000 / 260,000) × 100
Predetermined overhead rate = 600%
Two years ago, Kuley invested $20,900. She has earned and will earn compound interest of 7.8 percent per year. In 3 years from today, Nabax can make an investment and earn simple interest of 5.3 percent per year. If Nabax wants to have as much in 7 years from today as Kuley will have in 7 years from today, then how much should Nabax invest in 3 years from today
Answer:
$73306.46
Explanation:
Compound interest = Principal(1+rate/n)^nt
If Kuley invested $20900 and compound interest rate of 7.8% per year for 7 years then,
Compound interest in 7 years =$20900(1+7.8/12)^12×7
=$20900×1.7233= $36016.97
After 3 years, Nabax would have 4 years left to make what kuley made in 7 years
Kuley made compound interest of $36016.97-$20900= $15116.97
Nabax will invest for 4 years at simple interest rate of 5.3%
Simple interest = principal×time×rate/100
We substitute to get his needed amount(principal)
$15116.97=Principal×4×5.3/100
$15116.97= 21.2Principal/100
Cross multiply to make principal subject of the formula:
Principal= 1511697/21.2
Principal = $73306.46
Therefore Nabax needs to invest $73306.46 to get the same amount of return that kuley got in 7 years
One bond has an 8% coupon and a 10% current yield, the other has a 10% coupon and an 8% current yield. Which bond is cheaper
Answer: The bond with the 8% coupon and a 10% current yield.
Explanation:
When a bond has a coupon rate that it less than the yield, it is said to be a discount bond because it will be trading at a price that is less than its par value. The first bond will therefore be trading at a price lower than its par value.
The second bond however, is a premium bond. It will be trading at a price that is higher than its par value because that is what bonds so when their coupon rate is higher than their yield.
The first bond will therefore b cheaper because:
First Bond < Par < Second bond
Use the following information and the indirect method to calculate the net cash provided or used by operating activities:
Net income $85,800
Depreciation expense 12,500
Gain on sale of land 8,000
Increase in merchandise inventory 2,550
Increase in accounts payable 6,650
a. $37,400.
b. $13,150.
c. $94,400.
d. $14,150.
e. $29,400.
Answer:
c. $94,400
Explanation:
Net cash provided or used by operating activities is computed as see below;
Net cash provided or used by operating activities = Net income + Depreciation expense - Gain on sale of land - Increase in merchandise inventory + Increase in accounts payable
Net cash provided or used by operating activities = $85,800 + $12,500 - $8,000 - $2,550 + $6,650
Net cash provided or used by operating activities = $94,400
Ramakrishnan Inc. reported 2018 net income of $20 million and depreciation of $1,500,000. The top part of Ramakrishnan, Inc.'s 2017 and 2018 balance sheets is listed as follows (in millions of dollars).
2018 2017 2018 2017
Current assets: Current liabilities:
Cash and marketable securities $25 $26 Accrued wages and taxes $43 $35
Accounts receivable 98 92 Accounts payable 69 60
Inventory 170 144 Notes payable 60 55
Total $293 $262 Total $172 $150
Calculate the 2018 net cash flow from operating activities for Ramakrishnan, Inc.
Answer:
$6,500,000
Explanation:
Calculation to determine the 2018 net cash flow from operating activities for Ramakrishnan, Inc.
Cash Flows from Operating Activities
Net income $ 20,000,000
Additions (sources of cash):
Depreciation $1,500,000
Increase in accrued wages and taxes $8,000,000
($43,000,000-$35,000,000)
Increase in accounts payable $9,000,000
($69,000,000-$60,000,000)
Less Increase in accounts receivable ($6,000,000)
($98,000,000-$92,000,000)
Less Increase in inventory ($26,000,000)
($170,000,000-$144,000,000)
Net cash flow from operating activities: $ $6,500,000
Therefore the 2018 net cash flow from operating activities for Ramakrishnan, Inc is $6,500,000
The Cullumber Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $65 a night. Operating costs are as follows:
Salaries $7,500 per month
Utilities $1,000 per month
Depreciation $1,100 per month
Maintenance $2,940 per month
Maid service $24 per room
Other costs $46 per room
Required:
Determine the innâs break-even point in number of rented rooms per month.
Answer:
Results are below.
Explanation:
First, we need to calculate the total fixed cost and the total unitary variable cost:
Total fixed cost= salaries + utilities + depreciation + maintenance
Total fixed cost= 7,500 + 1,000 + 1,100 + 2,940
Total fixed cost= $12,540
Total unitary variable cost= 24 + 46
Total unitary variable cost= $70
As the unitary contribution margin is negative (65 - 70), the company will never break even. I will assume that the selling price is incorrect, and the room costs $85:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 12,450 / (85 - 70)
Break-even point in units= 830
A restaurant currently uses 62,500 boxes of napkins each year at a constant daily rate. The cost to order napkins is $200.00 per order and the annual carrying cost for one box of napkins is $1.00. If the restaurant orders the optimal (EOQ) number of boxes each time an order is placed, then the number of orders placed during the year would be
Answer:
xr72*444
Explanation:
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McBride's Dairy has 200 gallons of heavy cream and 600 gallons of skimmed milk and has incurred $1,000 of joint costs at the split-off point. It can sell each product at the split-off point or process it further in relatively similar processes, so management has decided that the most appropriate method for allocating joint costs is the market value at split-off point. One gallon of cream sells for $15, while one gallon of milk sells for $4. How much of the joint cost is allocated to cream
Answer:
$560
Explanation:
Calculation to determine How much of the joint cost is allocated to cream
Units Selling price Sales value Percentage of sales value Allocated cost
Cream (200*15=3,000) (3,000/5,400 = 56%)
(1,000 x 56% = $560)
Skimmed milk (600*4=2,400) (2,400/5,400 = 44%) (1,000 x 44% = $440)
Total $5,400 100% $1,000
($3,000+$2,400=$5,400)
(56%+44%=100%)
($560+$440=$1,00)
Therefore the joint cost allocated to CREAM is $560
Profit margin is calculated by dividing Group of answer choices sales by cost of goods sold. gross profit by net sales. net income by stockholders' equity. net income by net sales. Flag question: Question 19
Answer:
net income by net sales.
Explanation:
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services. Thus, it refers to the amount of money a customer or consumer buying goods and services are willing to pay for the goods and services being offered. Also, the price of goods and services are primarily being set by the seller or service provider and it eventually determines the profit margin of a business firm.
In Financial accounting, profit margin can be defined as a measure of the profitability of a business over a specific period of time. Thus, it is simply the amount of money by which revenue generated through sales exceed the costs of a product.
Hence, profit margin is calculated by dividing net income by net sales or net profits by net sales over a specific period of time.