Answer:
a. Return on Investment
ROI= Operating income/Average invested assets
Beverage Division ROI = 358 / (2,680+2,602) /2
= 358 / 2,641
= 0.13555
= 13.56%
Cheese Division ROI = 643 / (4,473 + 4,409)/2
= 643 / 4,441
= 0.14478
= 14.48%
b. Profit margin
Profit Margin= Operating income / Sales
Beverage Division = 358 / 2690
= 0.13309
=13.31%
Cheese Division = 643 / 3934
= 0.16345
= 16.35%
c. Investment turnover for the year
Investment turnover = Sales / Average invested assets
Beverage Division = 2690 / 2641 = 1.02
Cheese Division = 3934 / 4441 = 0.89
d. Beverage$'m Cheese'million
Average Assets 2641 4441
Targeted return 8% 8%
Target income 211 355
Residual Income Beverage'm Cheese'm
Operating income 358 643
Less: Target income 211 355
Residual Income 147 288
planning practices are different from organization to organization. discuss
Answer:
planning can be referred to as the things you think for the future to happen and organization is a group of people who works together.
Hopes this answer helps you.
Suppose a jar of orange marmalade that is ultimately sold to a customer at The Corner Store is produced by the following production process: Name of Company Revenues Cost of Purchased Inputs Citrus Growers Inc. $0.75 0 Florida Jam Company $2.00 $0.75 The Corner Store $2.50 $2.00 What is the value added of Florida Jam Company
Answer:
$1.75
Explanation:
Value added is calculated by subtracting the difference of revenue and the cost of inputs.
value added of Florida Jam Company = $2.50 - $0.75 = $1.75
Employers cite dressing inappropriately as one of the biggest mistakes job applicants make in interviews. True or False
Answer:
True
Explanation:
If you dress inappropriately, that is not showing a good first impression. Most, if not all jobs want to have employees that can dress well, cooperate, and work well with others.
In material requirement planning calculations, gross requirements for finished products are taken from ________________________.
Answer:
Forecasted sales
Explanation:
In the production process amount of inventory purchased for producing goods must be carefully calculated.
This avoids waste incurred from buying excess of materials needed for operation. Also when there is shortage of materials time and resources are wasted getting more materials.
So when calculating material requirements for finished products it is important that we consider sales forecasts.
Materials purchased based on this will just adequately meet the demand for product.
This reduce cost of storage of excess materials.
In the basic EOQ model, an annual demand of 40 units, an ordering cost of $5, and a holding cost of $1 per unit per year will result in an EOQ of:
Answer:
20
Explanation:
The formula for Economic order quantity ( EOQ ) = √2DS/H,
Where,
D annual demand = 40 units
S Ordering cost = $5
H Holding cost = $1
Hence ,
EOQ = √ 2 × 40 units × $5 / 1$
= √ $400 / $1
= 20
Sometimes, unethical behaviour appears from employees who advance their vested interests over the company properties, please explain with examples?
Answer:
Listed below, according to the ERC study, are the five most frequently observed unethical behaviors in the U.S. workplace.
Misusing company time. ...
Abusive behavior. ...
Employee theft. ...
Lying to employees. ...
Violating company internet policies.
If I helped you than plz mark me as brainest.
Unethical behavior means an action exhibited by someone, which are oppose to what is expected of such individual occupying such position to act in normal circumstance.
Amongst the employees whose company properties are vested in or used by. Such property are meant to be used effectively, with good faith and only for the cause of the profitability of the organisation.
Example of Unethical behavior from employees concerning the misuse of companies properties are as follows:
a. Using a company car for leisure
b. Using a company computer to surf social media
c. Mismanagement of the company resources
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On November 15, 20X3, Chow Inc., a U.S. company, ordered merchandise FOB shipping point from a German company for €200,000. The merchandise was shipped and invoiced on December 10, 20X3. Chow paid the invoice on January 10, 20X4. The spot rates for euros on the respective dates were
Answer:
$4,000 gain
Explanation:
Some information was missing:
the spot rates for euros were:
November 15, 20X3 $0.4955 per €1 December 10, 20X3 $0.4875 per €1December 31, 20X3 $0.4675 per €1January 10, 20X4 $0.4475 per €1In Chow's December 31, 20X3, income statement, the foreign exchange gain is ?
the goods costed €200,000 x 0.4875 = $97,500 on December 10, 20x3
the goods costed €200,000 x 0.4675 = $93,500 on December 31, 20x3
Since the goods were sold FOB shipping point, we have to use the shipping date (December 10) to calculate the original price. By December 31, the price in US dollars had decreased by $4,000 resulting in a foreign exchange gain.
A firm hires labor in a perfectly competitive labor market. Its current profit-maximizing hourly output is 100 units, which the firm sells at a price of $5 per unit. The Marginal Physical product (MPP) of the last unit of labor employed is 5 units per hour. The firm pays each worker an hourly wage of $15. a)What Marginal Revenue (MR) does the firm earn from sale of the output produced by the last worker employed? b)Does this firm sell its output in a perfectly competitive market?
Answer:
A.Marginal Revenue $3
B. No
Explanation:
A.Calculation for the Marginal Revenue (MR) that the firm earn from sale of the output produced by the last worker employed
Based on the information given we were told that the Marginal Physical product of the last unit of labor was 5 units per hour in which the firm pays each worker an hourly wage of $15. Now let calculate the Marginal Revenue using this formula
Marginal Revenue = Employees hourly wages/Marginal Physical product unit of labor
Where,
Employees hourly wages=$15
Marginal Physical product unit of labor =5 units per hour
Let plug in the formula
Marginal Revenue =$15/5
Marginal Revenue =$3
B. No reason been that the current profit-maximizing hourly output was 100 units in which we were told that the firm sells at a price of $5 per unit. While the Marginal Revenue gotten in (A) above was $3 which is lesser or lower than $5 per unit which simply means that the firm does NOT sell its output in a well perfectly competitive market .
The declaration, record, and payment dates in connection with a cash dividend of $77,000 on a corporation's common stock are October 1, November 7, and December 15.
Required:
Journalize the entries required on each date.
Answer:
Oct 1
Dr Cash Dividend $77,000
Cr Dividend Payable $77,000
Nov 7
No Entry required on the record date
Dec 15
Dr Dividend Payable $77,000
Cr Cash
Explanation:
Preparation of the Journal entries for each date
Based on the information given we were told that the cash dividend of the amount of $77,000 was a corporation's common stock are October 1, November 7, and December 15 which means that the transaction will be recorded as:
Oct 1
Dr Cash Dividend $77,000
Cr Dividend Payable $77,000
Nov 7
No Entry required on the record date
Dec 15
Dr Dividend Payable $77,000
Cr Cash
This year, Gogo Inc. granted a nonqualified stock option to Mrs. Mill to buy 10,000 shares of Gogo stock for $8 per share for five years. At date of grant, Gogo stock was selling on a regional securities market for $7.87 per share. Gogo recorded $26,700 compensation expense for the estimated value of the option. Five years after Gogo granted the option to Mrs. Mill, she exercised it on a day when Gogo stock was selling for $10.31 per share. Required: How much income must Mrs. Mill recognize in the year of exercise
Answer:
Gogo Inc. and Mrs. Mill
The Income that Mrs. Mill must recognize in the year of exercise is:
= $23,100
Explanation:
a) Data and Calculations:
Options given to Mrs. Mill = 10,000 shares of Gogo stock
Exercise price of the options = $8 per share
Period of option exercise = 5 years
Selling price of shares at grant date = $7.87
Selling price of shares at exercise date = $10.31
Compensation expense recorded by Gogo = $26,700
Cost of options to Mrs. Mill = $80,000 (10,000 * $8)
Income that Mrs. Mill must recognize in the year of exercise = $23,100 ($10.31 - $8) * 10,000
Answer:
marco
Explanation:
Hawk Corporation purchased 10,000 Diamond Corporation bonds in 2015 for $55 per bond and classified the investment as securities available for sale. The value of the Diamond investment was $85 per bond on December 31, 2016, and $97 on December 31, 2017. During 2018, Hawk sold all of its Diamond investment at $147 per bond. In its 2018 income statement, Hawk would report:_________.
Answer:
Gain of $920,000
Explanation:
Calculation for what Hawk would report In its 2018 income statement.
First step is the adjustment of Hawk accumulation of unrealized holding gain and fair value for 205-2017
Unrealized holding gain and fair value Adjustment=($97- 55) × 10,000 shares
Unrealized holding gain and fair value Adjustment=$42×10,000 shares
Unrealized holding gain and fair value Adjustment= $420,000
Second step is to find the additional increase that occurred in 2018
Additional increase=($147-$97)×10,000 shares
Additional increase=50×10,000 shares
Additional increase =$500,000
Last step is to find the total gain realized in the income statement
Total gain realized=$500,000+$420,000
Total gain realized=$920,000
Therefore what Hawk would report In its 2018 income statement will be a gain of $920,000
Holiday Laboratories purchased a high-speed industrial centrifuge at a cost of $460,000. Shipping costs totaled $11,000. Foundation work to house the centrifuge cost $7,300. An additional water line had to be run to the equipment at a cost of $3,900. Labor and testing costs totaled $5,400. Materials used up in testing cost $3,200. The capitalized cost is:
Answer:
$490,800
Explanation:
In order to arrive at the capitalized cost, we will sum up all the cost in the above question because those costs were incurred by the company - Holiday Laboratories to getting the assets prepared for use.
Therefore, Capitalized cost
= High speed industrial centrifuge + Shipping cost + Foundation work + Additional equipment cost + Labor and testing cost + Material cost
= $460,000 + $11,000 + $7,300 + $3,900 + $5,400 + $3,200
= $490,800
NoGrowth Corporation currently pays a dividend of per quarter, and it will continue to pay this dividend forever. What is the price per share of NoGrowth stock if the firm's equity cost of capital is ?
Answer: $18.88
Explanation:
The dividends are being paid quaterly so in other to use those dividends, the cost of capital will have to be converted to a quaterly rate as well.
[tex]( 1 + r )^{4} = 1.124[/tex]
r = [tex]\sqrt[4]{1.124} - 1[/tex]
r = 2.966%
Using the Dividend discount model, the price per share is;
= Next Dividend / ( cost of capital - growth rate)
= 0.56 / 0.02966
= $18.88
Note; there is no growth rate as the company will pay that dividend forever.
A stock has an expected return of 8.19 percent and its reward-to-risk ratio is 6.9 percent. If the risk-free rate is 2.15 percent, what is the stock's beta
Answer:
0.87
Explanation:
The beta of the stock can be calculated by rearranging the Reward to risk ratio formula. The Reward to risk ratio is given below
DATA
Risk free rate of return = 2.15%
Reward to risk ratio = 6.9%
Expected return = 8.19%
Beta =?
Reward to risk ratio = (expected return - risk free rate) / beta.
6.9% = ( 8.19% - 2.15%) / beta
6.9% = 6.04%/beta
beta = 6.04% / 6.9%
beta = 0.87
What is the beta for a company with a 12% expected return, while treasury bills are yielding 5% and the market risk premium is 7%
Answer:
The beta for the company is 1.
Explanation:
A beta is the measure of systematic risk associated to a stock or the portfolio. Systematic risk is the market risk that affects all the stocks in the market due to factors that are uncontrollable. Such a risk is what the companies compensate the investors for. Using the CAPM equation, we calculate the expected rate of return of a stock. The equation is,
r = rRF + Beta * rpM
Where,
rRF is the risk free raterpM is the risk premium on marketWe already have the values for r, rRF and rpM. Plugging them in the formula, we calculate the beta to be,
0.12 = 0.05 + Beta * 0.07
0.12 - 0.05 = Beta * 0.07
0.07/ 0.07 = Beta
Beta = 1
What is the difference between gross pay and net pay?
The risk-free rate is 6% and the expected rate of return on the market portfolio is 13%. a. Calculate the required rate of return on a security with a beta of 1.25.
Answer:
The required rate of return is r = 0.1475 or 14.75%
Explanation:
The required rate of return is the minimum return that investors demand/expect on a stock based on the systematic risk of the stock as given by the beta. The expected or required rate of return on a stock can be calculated using the CAPM equation.
The equation is,
r = rRF + Beta * (rM - rRF)
Where,
rRF is the risk free raterM is the return on marketr = 0.06 + 1.25 * (0.13 - 0.06)
r = 0.1475 or 14.75%
Jessie, an HR specialist, has been assigned the task of performing a job analysis for a new position created at the firm. What questions is LEAST relevant to the job analysis that Jessie will conduct?
Answer: D) What is the national hourly rate for this job?
Explanation:
Job analysis is done to help an organization ascertain what kind of person would be a right fit for the job. As such, it focuses on what the job entails as well as the requirements of the job and other details like its duration. This will help a company know the kind of person that will work best in the role.
The rate that the job pays is something that the company also analyzes but this is a very secondary aspect of job analysis and so it is the least relevant here.
Handbags, Inc. had 200 units of inventory on hand at the end of the year. These were recorded at a cost of $18 each using the last−in, first−out (LIFO) method. The current replacement cost is $16 per unit. The selling price charged by Handbags, Inc. for each finished product is $27. In order to record the adjusting entry needed under the lower−of−cost−or−market rule, the Cost of Goods Sold will be ________.
Answer:
debited by $400
Explanation:
Inventory on hand at the beginning × each inventory cost
= 200 units × $18
= $3,600
Inventory on hand at the beginning × Current replacement cost
= 200 units × $16 per unit
= $3,200
Therefore;
$3,600 - $3,200 = $400 increase of cost of goods sold which is debit.
Tatham Corporation produces a single product. The standard costs for one unit of its Clan product are as follows:
Direct materials (8 pounds at $0.70 per pound) $5.60
Direct labor (2 hours at $8 per hour) 16.00
Variable manufacturing overhead
(2 hours at $7 per hour) 1,400
Total 3,560
During November Year 2, 3,500 units of Clan were produced. The costs associated with November operations were as follows:
Material purchased (35,000 pounds at $0.80 per pound) 28,000
Material used in production (31,500 pounds)
Direct labor (7,500 hours at $7.50 per hour) 56,250
Variable manufacturing overhead incurred 55,500
What is the variable overhead efficiency variance for Clan for November Year 2?
1. $3,500 favorable.
2. $3,500 unfavorable.
3. $4,000 favorable.
4. $4,000 unfavorable.
Answer:
$3,500 Unfavorable
Explanation:
The computation of variable overhead efficiency variance for Clan for November Year 2 is shown below:-
Variable overhead efficiency variance
= (Standard labor hours - actual labor hours) × (Standard variable overhead rate)
= (3,500 × 2 - 7,500) × $7
= (7,000 - 7,500) × $7
= $3,500 Unfavorable
Therefore for computing the Variable overhead efficiency variance we simply applied the above formula.
You own 150 shares of Western Feed Mills stock valued at $41.20 per share. What is the dividend yield if your annual dividend income is $372
Answer:
6.01%
Explanation:
Calculation for the dividend yield
Using this formula
Dividend yield=(Annual dividend income/Numbers of shares)/Amount per shares
Let plug in the formula
Dividend yield =($372/150 shares)/$41.20 per share
Dividend yield =$2.48/$41.20
Dividend yield =0.0601*100
Dividend yield =6.01%
Therefore Dividend yield will be 6.01%
you are forming a new company that delivers food to residents across college campuses. the primary focus is
Answer:
your primary focus should be on making sure that your system works
Explanation:
When doing this your primary focus should be on making sure that your system works. Meaning that you need to make sure that you have all of the necessary equipment to get the deliveries out on time and everything worked out so that you can assure customer satisfaction. Otherwise, customers will begin to review your company badly and as dysfunctional, which will destroy your business before it can even get started.
Which of the following is NOT one of the four levels of culture? A. Profit B. artifacts C. espoused values D. enacted values
Answer:
A. Profit
Explanation:
Culture is the shared characteristics and knowledge of a group of people that affects different aspects of their lives like language, religion, social traits, arts, and music.
Levels of culture are:
- Artefacts: these are physical manifestation of a culture like dress code, office allocation, awards, and ceremonies.
- Assumptions: are unconscious alignment with expected behaviour.
- Espoused value: these are stated values to be adhered to
- Enacted values: behaviours that are exhibited as a guide to others in a group
Cole Co. began constructing a building for its own use in January 20X3. During 20X3, Cole incurred interest of $50,000 on specific construction debt, and $20,000 on other borrowings. Interest computed on the weighted-average amount of accumulated expenditures for the building during 20X3 was $40,000. What amount of interest cost should Cole capitalize
Answer: $40,000
Explanation:
When capitalizing Interest for a PPE, accounting procedure is that one looks at the actual interests incurred vs the interest computed on the weighted-average amount of accumulated expenditures for the PPE and then pick the lower of the two for capitalization.
The actual interest incurred is;
= 50,000 + 20,000
= $70,000
The Interest computed on the weighted-average amount of accumulated expenditures for the building during 20X3 = $40,000. This is the lower one and so will be the amount capitalized.
Which one of the following is an example of cash flows from operating activities? Multiple Choice Proceeds from collecting the principal amounts of loans. Repayment of principals on loans. Proceeds from the issuance of bonds and notes payable. Payments to acquire equity securities of other companies. Receipts of cash from sales.
Answer:
Receipts of cash from sales.
Explanation:
Operating activities in the cash flow statement refers to that statement in which the cash sales, cash payments are recorded. These transactions are recorded when the company use the direct method and for an indirect method the other things should be considered as changes in working capital, depreciation expenses, profit and loss on sales of fixed assets, etc
Therefore the last option is correct
The example of cash flows from operative activities in the query above is receipts of cash from sales. The correct option that matches with the statement above is E.
Cash flows from operating activities refers to as the cash that is either incoming or outgoing from the business organization from activities like sales, purchase, etc.
The cash flow of a business organisation refers to the net balance of monies received or sent/spent by such organization for the purpose of carrying the normal business activities.The receipts and expenditures made in cash will account to cash flows and any accrued income or expense will not form a part of cash flows of an organization.Receipts from sales in cash will amount to positive cash flow as it is assumed that the goods are sold by the firm at above the cost price of such goods.Hence, the correct option is E that the receipts of cash from sales which is a normal business activity is an example of cash flow from operating activities.
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The amortization of bond premium on long-term debt should be presented in a statement of cash flows (using the indirect method for operating activities) as a(n)
Answer:
Operating Activity
Explanation:
The Indirect method, reconciles the Operating Profit to the Operating Cash Flow by adjusting the following items (1) Non Cash flow items previously added or deducted from Operating Profit and (2) Changes in Working Capital items.
Amortization of bond premium is an item of non-cash flow that was previously deducted from Operating Profit and needs to be added back.
f covered interest arbitrage opportunities do not exist, Group of answer choices interest rate parity holds. interest rate parity does not hold. interest rate parity holds, and arbitragers will be able to make risk-free profits. arbitragers will be able to make risk-free profits. interest rate parity does not hold, and arbitragers will be able to make risk-free profits.
Answer: interest rate parity holds
Explanation:
Covered interest arbitrage is a trading strategy that is used by an investor when the person whereby takes advantage of the differences in interest rate between two nations and invest in the currency that brings higher value.
If covered interest arbitrage opportunities do not exist, it simply means that interest rate parity holds.
Assuming you are a rational investor, the amount you should be willing to pay for a 20-year ordinary annuity that makes payments of $4,000 per year and you require a 6% rate of return per year is closest to:
Answer:
PV= $45,879.68
Explanation:
Giving the following information:
Cash flow= $4,000 annually
n= 20
i= 6% compunded annually
The maximum that an investor should pay is the present value (PV).
First, we need to calculate the future value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {4,000*[(1.06^20) - 1]} / 0.06
FV= $147,142.36
Now, we can calculate the present value, we need to use the following formula:
PV= FV/(1+i)^n
PV= 147,142.36/(1.06^20)
PV= $45,879.68
A question that respondents can answer in an almost unlimited number of ways is called a ____ question.
Answer:
open question
Explanation:
An open question allows each respondent to interpret the final answer differently.
Folsom Advertising, Inc. is considering an investment in a new information system. The new system requires an investment of $1,800,000 and either has
a. Even cash flows of $750,000 per year or
b. The following expected annual cash flows: $450,000, $225,000, $600,000, $600,000, and $150,000.
Required:
Calculate the payback period for each case
Answer:
Payback period=2 years 5 months
Payback period=3 years 8 months
Explanation:
The payback period is the estimated length of time in years it takes .
It is the number of years it takes the cash project to break-even
a) Payback period
Total cash flow for two years = 750× 2 = 1500.000
Balance of cash flow required to make up= 1800000- 1500,000 300,000
Payback period = 2 years + 300,000/750,000× 12 months= 2 years 5 months
Payback period=2 years 5 months
b) Payback period
Total cash flow for 3 years = 450,000 + $225,000 +600,000=1,275 ,000
Balance o cash required to make up 1800,000 = 1,800,000 -1275,000= 525,000
Pay back period = 3 years + 525,000/750,000× 12 months
= 3 years 8 months
Payback period=3 years 8 months