Answer:
Increase Increase
Explanation:
financial accounting, statement of cash flow can be regarded as a financial statement that gives the summary of values of amount cash as well as cash equivalent that enters or leave a firm. It gives the measurement of the well management of cash position of a company. It should be noted that When preparing a statement of cash flows, a decrease in accounts receivable during a period the adjustments in determining cash flow from operating activities is that Direct Method increases, Indirect Method increases.
Burkhardt Corp. pays a constant $13.30 dividend on its stock. The company will maintain this dividend for the next 7 years and will then cease paying dividends forever. If the required return on this stock is 10 percent, what is the current share price?
Answer: $64.75
Explanation:
Dividend= $13.30
Duration = 7 years
Required return = 10%
Current share price will be:
= (13.3/1.1) + (13.3/1.1^2) + (13.3/1.1^3) + (13.3/1.1^4) + (13.3/1.1^5) + (13.3/1.1^6) + (13.3/1.1^7)
= 12.09 + 10.99 + 9.99 + 9.08 + 8.26 + 7.51 + 6.83
= 64.75
Therefore, the current share price is $64.75
Pharoah Company started the year with total assets of $304000 and total liabilities of $244000. During the year the business recorded $633000 in revenues, $326000 in expenses, and dividends of $62000. The net income reported by Pharoah Company for the year was
Answer:
Net Income = $307,000
Explanation:
Given:
Total revenue = $633,000
Total expenses = $326,000
Find:
Net income
Computation:
Net Income = Total revenue - Total expenses
Net Income = $633,000 - $326,000
Net Income = $307,000
Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses.
Answer and Explanation:
The preparation of the cash flow statement is presented below:
Forten Company
Statement of Cash Flows
For Current Year Ended December 31
Cash flows from operating activities
Net Income $110,575
Adjustments made
Depreciation expense $31,750
Less: Increase in Accounts receivable -$20,755
Less: Increase in Inventory -$29,356
Add: Decrease in Prepaid expense $795
Less: Decrease in Accounts payable -$67,034
Add: Loss on disposal of equipment $16,125
Net cash provided by operating activities $42,100
Cash flows from investing activities
Less: Cash paid for equipment -$52,000
Add: Cash received from sale of equipment $22,625
Net cash used in investing activities -$29,375
Cash flows from financing activities:
Cash borrowed on short-term note $5,100
Less: Cash paid on long-term note -$55,625
Add: Cash received from issuing stock $72,000
Less: Cash paid for dividends -$52,300
Net cash used in financing activities -$30,825
Net increase (decrease) in cash -$18,100
Add: Cash balance at beginning of year $84,500
Cash balance at end of year $66,400
Thomas Longbow is the only employee of Presido, Inc. During the first week of January, Longbow earned $3,000.00 and had federal and state income tax withholdings of $150.00 and $56.25, respectively. FICA taxes are 7.65% on earnings up to $117,000. State and federal unemployment taxes for the period are $187.50 and $30.00, respectively. What is Presido's payroll tax expense for the week
Answer:
$447
Explanation:
Calculation for What is Presido's payroll tax expense for the week
Using this formula
Payroll tax expense = Employer's FICA match + Federal unemployment tax + State unemployment tax
Let plug in the formula
Payroll tax expense = ($3,000 ×0.0765)
+$187.50 + $30.00
Payroll tax expense= $447
Therefore Presido's payroll tax expense for the week will be $447
BDE Inc. is an unlevered firm which expects to generate a net cash flow of $25 million per year in perpetuity. The firm’s required return on equity is 10%. Assume that the Modigliani and Miller assumptions hold. (15 points) For questions 27 and 28 assume that the corporate tax rate is zero. 27. What is the value of the unlevered firm?
Answer:
$250 million
Explanation:
If taxes do not exist and the firm has no outstanding debt, then the value of unlevered firm = total enterprise value of BDE
we can use the perpetuity formula to determine the total enterprise value:
total enterprise value = FCF / cost of equity
total enterprise value = $25 million / 10% = $250 million
Using the information from the table below, answer the following questions.
Production ⇔ Total cost
0 ⇔ 80
1 ⇔ 140
2 ⇔ 180
3 ⇔ 200
4 ⇔ 240
5 ⇔ 320
6 ⇔ 420
7 ⇔ 540
8 ⇔ 680
a. Total average costs for the production of 4 products.
b. Marginal cost for the production of the 6th product.
c. If its price is 100$, find the maximum profit for a perfectly competitive firm (MR=MC).
Answer:
this is the only thing i remember till now and im gonna use . for + okay
a. 80.140.180.200.240.320.420.540.680 ÷ 1.2.3.4.5.6.7.8
The amount of principal that is paid at December 31,Alden Trucking Company is replacing part of its fleet of trucks by purchasing them under a note agreement with Kenworthy on January 1, 2019. Alden financed $37,908,000, and the note agreement will require $10 million in annual payments starting on December 31, 2019 and continuing for a total of four more years (final payment December 31, 2023). Kenworthy will charge Alden Trucking Company the market interest rate of 10% compounded annually. 2019 is:
Answer:
$3,169,880
Explanation:
Calculation for How much is 2020 interest Expenses
First step is to calculate December 31, 2019 note payable liability
Using this formula
December 31, 2019 note payable liability = Initial debt + 2019 interest expense - First annual payment
Let plug in the formula
December 31, 2019 note payable liability = $37,908,000+ ($37,908,000 ×10%) - ($10,000,000)
December 31, 2019 note payable liability=$37,908,000+$3,790,800-$10,000,000
December 31, 2019 note payable liability=$31,698,800
Now let calculate 2020 interest expense
2020 interest expense = January 1, 2020 book value $31,698,800 ×10%
2020 interest expense =$3,169,880
Therefore 2020 interest Expenses will be $3,169,880
Accents Associates sells only one product, with a current selling price of $150 per unit. Variable costs are 30% of this selling price, and fixed costs are $19,600 per month. Management has decided to reduce the selling price to $145 per unit in an effort to increase sales. Assume that the cost of the product and fixed operating expenses are not changed by this reduction in selling price. At the current selling price of $150 per unit, the dollar volume of sales per month necessary for Accents to break-even is:
Answer:
$65,333
Explanation:
As we know,
Sales price = Variable cost + Contribution cost
Sales price = Variable cost ratio + Contribution margin ratio
100% = 30% + Contribution
Contribution = 100% - 30%
Contribution = 70%
Fixed cost = $19,600
Break even sales = Fixed cost / Contribution margin ratio
Break even sales = $19,600 / 30%
Break even sales = $19,600 / 0.3
Break even sales = $65,333.
Gore Inc. sells office furniture. In 2021, it sold 200 desks for $500 each. For each desk sold, Gore distributed a 50% discount coupon for purchase of an office chair within one month. Based on historical experience, Gore expects that approximately 20% of the coupons will be utilized. The chairs purchased with the coupons are priced at $150 and normally discounted 10%. What would be the stand-alone sales price used by Gore for the coupon when allocating the $500 transaction price to performance obligations
Answer:
$12
Explanation:
Stand alone sale price = (Cost of chair) * (Discount % of voucher-Normal% of discount) * (% of coupons to be utilized)
Stand alone sale price = $150 * (50%-10%) * 20%
Stand alone sale price = $150 * 40% * 20%
Stand alone sale price = $12
Therefore, the Stand alone selling price used by Gore Inc. is $12
Which sentence best describes the irony in the passage?
It is ironic that Jim and Della will not be able to use their presents until the future.
It is ironic that Jim cannot use Della’s present because he sold his watch to get her present.
It is ironic that Jim wanted his present so badly but no longer wants it.
The sentence which best describe the irony in the passage is
that Jim cannot use Della’s present because he sold his watch to get her present.
That is best describe in the passage as they both have shown their immense feeling of emotions towards each other.
To know more about Irony, click here
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23) The creation of a successful new product depends on a company's understanding of its ________ and its ability to deliver ________ to customers. A) customers, competitors, and markets; superior value B) product, marketing mix, and marketing strategy; functional features C) product life cycle, legal responsibilities, and social responsibilities; innovations D) customers, brands, products; product images E) competitors, distributors, and employees; new styles
Answer:
A) A) customers, competitors, and markets; superior value
Explanation:
For a company to create a successful product, First, this company must create a great product that has a clear, well defined also large consumer market where the product that is being created offers a solution to existing consumer issues as well as having the ability to outperform it's competitors. This can be achievable through offering a product that has superior value.
Secondly, this new product has to be properly defined across the final consumer, technology and business before the company starts execution.
Rivian is considering an trucking assembly. The R1T assembly has an expected life of 5 years, will cost $95 million, and will produce net cash flows of $37 million per year. Inflation in operating costs and battery costs is expected to be zero, and the company's cost of capital is 10%. What is the equivalent annual annuity?
Answer:
Rivian
The equivalent annual annuity is:
$28,053,400.
Explanation:
a) Data and Calculations:
R1T assembly investment cost = $95,000,000
Net cash flows = $37,000,000 per year
Cost of capital = 10%
Period of investment and annuity = 5 years
Annuity factor = 3.791
Present value of annuity = (3.791 * $37,000,000)/5
= 140,267,000/5
= $28,053,400
b) The net cash flows of $37 million per year will produce an annuity value of $28,053,400. In comparison with the investment cost in the R1T assembly, the present value of the annuity is reasonable.
Bonita Clinic purchases land for $175900 cash. The clinic assumes $1700 in property taxes due on the land. The title and attorney fees totaled $900. The clinic has the land graded for $2000. What amount does Bonita Clinic record as the cost for the land
Answer:
$188,600
Explanation:
Cost for the land = Purchases Cost + Taxes + Attorney fee + Land graded cost
Cost for the land = 175,900 + 1,700 + 9000 + 2,000
Cost for the land = $188,600
So, the amount Bonita Clinic will record as the cost for the land is $188,600
Use the following accounts and information to prepare, in good form, a multiple step income statement, retained earnings statement, and classified balance sheet for Mitchell Enterprises for the year ended December 31, 2019. The company has 37,000 shares of its $5 par value common stock issued and outstanding all during the year. Mitchell Enterprises Adjusted Trial Balance December 31, 2019
Answer:
The information for adjusted trial balance of Mitchell Enterprises is missing.
The 37,000 shares at $5 par value will be reported in Balance Sheet at the Equity and Liabilities side under Equity head.
Shares will be reported as:
Common Stock 37,000 * $5 = $185,000
The rest of the data from Trial Balance will be reported in Balance Sheet and Income Statement.
Explanation:
The information for adjusted trial balance of Mitchell Enterprises is missing.
The 37,000 shares at $5 par value will be reported in Balance Sheet at the Equity and Liabilities side under Equity head.
Shares will be reported as:
Common Stock 37,000 * $5 = $185,000
The rest of the data from Trial Balance will be reported in Balance Sheet and Income Statement.
Machinery acquired new on January 1 at a cost of $80,000 was estimated to have a useful life of 10 years and a residual salvage value of $20,000. Straight-line depreciation was used. On January 1, following six full years of use of the machinery, management decided that the estimate of useful life had been too long and that the machinery would have to be retired after three years, that is, at the end of the ninth year of service. Under this revised estimate, the depreciation expense for the seventh year of use would be:
Answer:
$8,000
Explanation:
Calculation for what the depreciation expense for the seventh year of use would be
First step is to calculate the Book value at the end of Year 6
Machinery cost $80,000
Less: Salvage value ($20,000)
Depreciable cost $60,000
($80,000-$20,000)
Divide by useful life 10 years
Annual Depreciation $6,000
($60,000÷10 years)
Accumulated Depreciation for 6 years $36,000
($6,000*6 years)
Book value at the end of Year 6 $44,000 ($80,000-$36,000)
Now let calculate the Depreciation expense for the seventh year of use
Book value at the end of Year 6 $44,000
Less: Salvage value ($20,000)
Remaining Depreciable cost $24,000
($44,000-$24,000)
Divide by Remaining useful life 3 years
Depreciation expense for the seventh year of use $8,000
($24,000/3 years)
Therefore Under this revised estimate, the depreciation expense for the seventh year of use would be: $8,000
The Lechwe Company's December 31 pre-reconciliation cash balance on its books was $93,000. As of December 31, outstanding checks total $45,200 and deposits in transit total $30,600. Assuming there are no other reconciling items, what was the December 31 cash balance on Lechwe's bank statement
Answer:
$107,600
Explanation:
The cash balance on Lechwe' bank would be calculated as;
Cash balance = Corrected cash book balance + Outstanding cheques - Deposit in transit
Given that;
Corrected cash book balance = $93,000
Outstanding cheques = $45,200
Deposit in transit = $30,600
= $93,000 + $45,200 - $30,600
= $107,600
Therefore, the December 31 cash balance on Lechwe's bank statement is $107,600
Havermill Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $73 for Office Supplies, $137 for merchandise inventory, and $22 for miscellaneous expenses. The fund has a balance of $18. On October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the establishment of the fund on September 1 is: Group of answer choices Debit Miscellaneous Expense $250; credit Cash $250. Debit Petty Cash $250; credit Accounts Payable $250. Debit Cash $250; credit Accounts Payable $250. Debit Petty Cash $250; credit Cash $250. Debit Cash $250; credit Petty Cash $250.
Answer:
Debit Petty Cash $250; credit Cash $250
Explanation:
Based on the information given we were told that the Company establishes the amount of $250 as a petty cash fund on September 1 which means that The journal entry to record the establishment of the fund on September 1 is:
Debit Petty Cash $250
Credit Cash $250
Six-month call options with strike prices of $35 and $40 cost $6 and $4, respectively. What is the maximum gain when a bull spread is created by trading a total of 200 options
Answer:
$300
Explanation:
Calculation for What is the maximum gain when a bull spread is created by trading a total of 200 options
First step is to calculate the cost amount
Cost =6×100−4×100
Cost=$200
Second step maximum payoff of a stock price that is greater than $40 will be $500
Hence,
Maximum gain=$ 500 −$200
Maximum gain = $300
Therefore the maximum gain when a bull spread is created by trading a total of 200 options will be $300
Eternal City operates several theme parks throughout the western United States and uses 30,000 gallons of machine oil on an annual basis. The parks operate 50 weeks per year and are considering 2 suppliers of oil, Sharps LTD and Winkler LLC. Sharps Price per unit is $4.00 and Winkler is $3.80. Sharps annual holding cost is $0.80 per unit and Winkler is $0.76. Sharps lead time is 4 weeks, Winkler is 6 weeks. Sharps admin costs are $4,000 and Winkler is $5,000 Annual Freight Costs Supplier 5,000 10,000 15,000 Sharps $5,000 $2,600 $2,000 Winkler $5,500 $3,200 $2,900 What are total annual costs given a shipment quantity of 5,000 gallons from Sharps? a. $139,230 b. $261,220 c. $456,000 d. $132,920 e. $139,220
Answer:
$132,920
Explanation:
Annual demand D = 30,000
Order quantity Q = 5,000
Annual holding cost per unit H = $0.80
Annual holding cost = (Q/2)*H
Annual holding cost = (5,000/2)*$0.80
Annual holding cost = 2,500 * $0.80
Annual holding cost = $2,000
Annual shipping cost = $5,000
Unit cost = $4.00
Annual admin cost = $4,000
Lead time cost = (Lead Time*H*D)/Weeks per year
Lead time cost = 4*$0.80*30,000/ 50
Lead time cost = $1,920
Cost of product = Unit cost * D
Cost of product = $4 * 30,000
Cost of product = $120,000
Total cost = Total order cost + Holding cost + Admins cost + Cost of product + LT cost
Total cost = $5,000 + $2,000 + $4,000 + $120,000 + $1,920
Total cost = $132,920
Thus, the total annual costs given a shipment quantity of 5,000 gallons from Sharps is $132,920
Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio. The partners have decided to liquidate their partnership. On the day of liquidation their balance sheet appears as follows. KENDRA, COGLEY, AND MEI Balance Sheet May 31 Assets Liabilities and Equity Cash $ 99,600 Accounts payable $ 255,500 Inventory 539,400 Kendra, Capital 76,700 Cogley, Capital 172,575 Mei, Capital 134,225 Total assets $ 639,000 Total liabilities and equity $ 639,000 Required: For each of the following scenarios, complete the schedule allocating the gain or loss on the sale of inventory. Prepare journal entries to record the below transactions. (Do not round intermediate calculations. Amounts to be deducted or Losses should be entered with a minus sign. Round your final answers to the nearest whole dollar.) (1) Inventory is sold for $612,000. (2) Inventory is sold for $462,600. (3) Inventory is sold for $336,000 and any partners with capital deficits pay in the amount of their deficits. (4) Inventory is sold for $300,000 and the partners have no assets other than those invested in the partnership.
For a real interest rate of 12% per year and an inflation rate of 7% per year, the market interest rate per year is closest to:______
a. 4.7%
b. 7%
c. 12%
d. 19.8%
Answer: 19.8%
Explanation:
Interest rate = 12%
Inflation rate = 7%
Market Interest rate will be:
= 12% + 7% + 12%(7%)
= 0.12 + 0.07 + 0.12(0.07)
= 0.12 + 0.07 + 0.0084
= 0.1984
= 19.84%
Therefore, the market interest rate per year is closest to 19.8%
What would happen in the market for loanable funds if the governemnt increases the tax on interest income?
Answer: c. The supply of loanable funds would shift left.
Explanation:
An increase on taxes on interest income will reduce the earnings of savers who are the suppliers of loanable income. Some of those savers will divest from savings and look for other forms of investment to make better earnings from.
This flight from savings will reduce the savings held in banks and therefore the supply of loanable funds will reduce as well which will shift the supply curve to the left.
You want to construct a portfolio containing equal amounts of U.S. Treasury bills, stock A, and stock B. If the beta of the stock A is 1.46 and the beta of the portfolio is 0.93, what does the beta of stock B have to be
Answer:
beta of stock B = 1.33
Explanation:
the beta of treasury bills is 0
the beta of stock A = 1.46
the beta of stock B = ?
the portfolio contains equal amounts of each investment and its overall beta is 0.93
0.93 = (0 x 1/3) + (1.46 x 1/3) + (B x 1/3)
0.93 = 0 + 0.4867 + 0.333B
0.93 = 0.4867 + 0.333B
0.4433 = 0.333B
B = 0.4433 / 0.333 = 1.33
The processes individuals use when making a purchase decision are called _____. This is also the reason individuals recognize and respond to the distinctive lettering used on Coca-Cola cans, the shape of the Nike swoosh, and the color of a can of Campbell soup. Group of answer choices consumer behavior
Answer:
Consumer behavior
Explanation:
Consumer behavior is the study related to the individuals and the organization with respect to the choosing, and using of products and services. It mainly deals in the motivation, behavior, and the psychology. The consumer behavior should be known at the time of shopping
So the process that use by the individuals at the time of making a purchase decision is known as the consumer behavior
Hence, the same is to be conisdered
You are considering a project which has been assigned a discount rate of 5 percent. If you start the project today, you will incur an initial cost of $4,100 and will receive cash inflows of $2,900 a year for 2 years. If you wait one year to start the project, the initial cost will rise to $4,320 and the cash flows will increase to $3,257 a year for 2 years. What is the value of the option to wait
Answer:
$361.14
Explanation:
start the project today:
initial outlay = -$4,100
cash flow year 1 = $2,900
cash flow year 2 = $2,900
NPV = -$4,100 + $5,392.29 = $1,292.29
if you start the project in one year:
initial outlay year 1 = -$4,320
cash flow year 2 = $3,257
cash flow year 3 = $3,257
NPV year 1 = -$4,320 + $6,056.10 = $1,736.10
value of option to wait = ($1,736.10 / 1.05) - $1,292.29 = $361.14
An advertising campaign is:
O A. a set of games customers can play to see whether or not they like
a product.
O B. a mass media device used to make advertisements more
interactive.
OC. a method of finding the best customers by determining their race
and age.
OD. a series of targeted activities aimed to make customers aware of
a product.
Answer:
D. a series of targeted activities aimed to make customers aware of
a product.
Explanation:
Advertising is the use of media to communicate messages that create awareness of a particular product or service. It is the relaying of persuasive information to a targeted audience with the expectation of increasing the sales of a product.
An advertising campaign will involve a series of events and messages to convince the targeted audience to buy the advertised product. The campaign communicates the benefits of the advertised product and gives reasons why customers should consume it. An advertising campaign is not a single event but a series of marketing activities that could last for days, weeks, or even months.
Bryson Corporation purchased a limited-life intangible asset for $1,162,500 on May 1, 2018. It has a remaining useful life of 15 years. What total amount of amortization expense should have been recorded on the intangible asset by December 31, 2020 (if necessary, round your answer to the nearest dollar)
Answer:
$206,667
Explanation:
Calculation for What total amount of amortization expense should have been recorded on the intangible asset by December 31, 2020
Using this formula
Total Amortization expense=Cost/useful life*Number of months
Let plug in the formula
Total Amortization expense=$1,162,500/180*32
Total Amortization expense=$206,667
Note that 15 years*12months will give us 180 months which is the useful life while May 1, 2018 - December 31, 2020) will give us 32 months
Therefore the total amount of amortization expense should have been recorded on the intangible asset by December 31, 2020 will be $206,667
Real per capita gross domestic product (GDP) is higher in the United States than in Bangladesh. Based on that, we could predict the United States to have a higher rate of ________ and a lower rate of ________.
Answer:
b. adult literacy; infant mortality
Explanation:
Multiple choice "life expectancy; internet usage ; adult literacy; infant mortality ; infant mortality; adult literacy ; access to clean water; life expectancy"
Higher real GDP per capita would imply higher literacy rate and at the same time lower infant mortality as citizens would invest more in health and education. All the other options are wrong as higher real GDP per capita cannot lead to lower life expectancy or literacy rate.
Based on the following information from Schrute Company's balance sheet, calculate the current ratio. Current assets $ 141,000 Investments 60,800 Plant assets 430,000 Current liabilities 57,000 Long-term liabilities 108,000 A. Schrute, Capital 466,800
Answer:
2.47
Explanation:
Current ratio measure Liquidity of the firm and is calculated as ;
Current ratio = Current Assets ÷ Current Liabilities
Where,
Current Assets = $ 141,000
Current Liabilities = $57,000
Then,
Current ratio = $ 141,000 ÷ $57,000
= 2.47
Diane's Designs has two classes of stock authorized: 8%, $10 par preferred and $1 par value common. The following transactions affect stockholders' equity during 2015, its first year of operations:January 1 Issue 200,000 shares of common stock for $15 per share.February 6 Issue 1,000 shares of preferred stock for $11 per share.October 10 Repurchase 10,000 shares of its own common stock for $18 per share.November 12 Reissue 5,000 shares of treasury stock at $20 per share.Record each of these transactions. (Omit the "$" sign in your response.)
Answer:
Date Account title and Explanation Debit Credit
Jan-01 Cash (200,000*$15) 3,000,000
Common stock (200,000*$1) 200,000
Paid in capital in excess of par - 2,800,000
Common stock
(To record issue of 200,000 shares for $15)
Feb-06 Cash (1,000*$11) 11,000
Preferred stock (1,000*$10) 10,000
Paid in capital in excess of par 1,000
- Preferred stock
(To record issue of 1,000 shares for $11)
Oct-10 Treasury stock (10,000*$18) 180,000
Cash 180,000
(To record repurchase of 10,000 shares for $18)
Nov-12 Cash (5,000*$20) 100,000
Treasury stock (5,000*$18) 90,000
Paid in capital in excess of par 10,000
- Treasury stock
(To record reissue of 5,000 treasury stock for $20)