Answer:
1. Refer to Instruction, how many euros will the U.S. investor acquire with his initial $500,000 investment?
D) €384,615$500,000 / $1.30 = €384,615.38
2. Refer to Instruction, at an average price of €60/share, how many shares of stock will the investor be able to purchase?
B) 6410 shares€384,615 / €60 = 6,410.25
3. Refer to Instruction, at the end of the year the investor sells his stock that now has an average price per share of €57. What is the investor's average rate of return before converting the stock back into dollars?
C) -5.0%(€57 - €60) / €60 = -5%
4. Refer to Instruction, at the end of the year the investor sells his stock that now has an average price per share of €57. What is the investor's average rate of return after converting the stock back into dollars?
A) -1.35%[(6,410 x €57) + €15] x $1.35 = $493,269.75
($493,269.75 - $500,000) / $500,000 = -1.35%
Midwest Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $85,000 with a $7,000 residual value and a ten-year life. The equipment will replace one employee who has an average wage of $20,210 per year. In addition, the equipment will have operating and energy costs of $4,130 per year. Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment. If required, round to the nearest whole percent. %
Answer:
17.89%
Explanation:
Calculation Determine the average rate of return on the equipment
Using this formula
Average rate of return =Avarage annual income /Average investment
Where,
Avarage annual income=Annual saving - Annual depreciation- Annual operating costs
Average investment= (Beginning costs + Residual value)÷2
Let plug in the formula
Average rate of return=$20,210 - ($85,000- $7,000)÷10 years-$4,130/($85,000+$7,000)÷2
Average rate of return=$20,210-($78,000÷10)-$4,180/($92,000)÷2
Average rate of return=$20,210-$7,800-$4,180/$46,000
Average rate of return=$8,230/$46,000
Average rate of return=0.1789*100
Average rate of return=17.89%
Therefore the average rate of return on the equipment will be 17.89%
Answer:
18%
Explanation:
This can be calculated as using the formula for calculating the average rate of return as follows:
Average rate of return = Average annual income / Average investment in equipment .................. (1)
To use equation (1), we first calculate the following:
Annual cost saving = $20,210
Annual depreciation = (Equipment cost - Residual value) / Useful number of years = ($85,000 - $7,000) / 10 = $7,800
Annual operating and energy costs = $4,130
Average annual income = Annual cost saving - Annual depreciation - Annual operating and energy costs = $20,210 - $7,800 - $4,130 = $8,280
Average investment in equipment = (Equipment cost + Residual value) / 2 = $46,000
Substituting the values for Average annual income and Average investment in equipment into equation (1), we have:
Average rate of return = $8,280 / $46,000 = 0.18, or 18%
The risk-free rate is 5% and the tangency portfolio has 20% expected return and 40% return standard deviation. A risk-loving investor has $1000 of wealth and she seeks to attain 27.5% expected return. How much money does she need to borrow from the bank? A. 250 B. 500 C. 1500 D. 1000
Answer:
B. 500
Explanation:
Portfolio return = Weighted average return
Let the amount invested in portfolio is x and amount invested in risk free = 1000 - x
27.5% = 20%*x + 5%*(1000-x)
27.5% * 1,000 = 20%x + 50 – 5%x
0.275 * 1,000 = 15%x + 50
275 - 50 = 15%x
225 = 15%x
x = 225 / 0.15
x = $1,500
Hence, the amount of money borrowed = $1,500 - $1000
= $500
Use the following selected financial information for Wilcox Corporation to answer questions 11-20. Wilcox Corporation Income Statement For the Year Ended December 31, 20XX Net sales $2,870 Cost of goods sold 1,985 Gross profit $ 885 Operating expenses 620 Operating profit $ 265 Interest expense 40 Earnings before taxes $ 225 Income tax expense 80 Net profit $ 145 Wilcox Corporation Balance Sheet December 31, 20XX Assets Liabilities and stockholders' equity Current assets Current liabilities Cash $ 25 Accounts payable $ 85 Short-term investments 15 Accrued liabilities 45 Accounts receivable 70 Total current liabilities 130 Inventory 150 Long-term debt 240 Total current assets 260 Total liabilities 370 Long-term assets Stockholders' equity Net PPE 390 Common stock and PIC 80 Goodwill 210 Retained earnings 410 Total stockholders' equity 490 Total assets $860 Total liabilities and equity $860 WilcoxCorporation Statement of Cash Flow Information For the Year Ended December 31, 20XX Cash from operating activities $150 Investing activities: Capital expenditures $ 60 Acquisitions $ 10 Financing activities: Proceeds from long-term borrowing $ 50 Payments on long-term borrowing $ 25 Payments of cash dividends $ 20 Cash paid for interest $ 10 Cash paid for income taxes $ 75 Wilcox’s average collection period is:
Answer:
Wilcox’s average collection period is 9 days.
Explanation:
The average collection period can be described as how long it takes a company to get paid by the amount of money its clients are owing it in terms of accounts receivable (AR).
Average collection period can be calculated using the following formula:
ACP = (Accounts receivable / Net sales) * 365 days .............. (1)
Where, for this question;
ACP = Average collection period = ?
Accounts receivable = $70
Net sales = $2,870
Substituting the values into equation (1), we have:
ACP = ($70 / $2,870) * 365 days
ACP = 0.024390243902439 * 365 days
ACP = 8.90 days, or approximately 9 days
Therefore, Wilcox’s average collection period is 9 days.
3. “The International Monetary Fund (IMF) and the World Bank are two institutions that have outlived their usefulness”. Do you agree?
Answer:
“The International Monetary Fund (IMF) and the World Bank"
Have they outlived their usefulness?
No.
The IMF and the World Bank have not outlived their usefulness. They remain very useful and relevant to our world today. The problem they have experienced stem in part from the neglect of their purposes, because of the near-absence of the grassroot touch. They can refocus on their purposes and reduce elitistism, and then they continue to be useful.
But, they cannot rediscover and concentrate on their purposes without the cooperation of member-countries. Recalcitrancy does not allow any organized institutions without police power to function at their best. Member-countries must learn to cooperate with these bodies to achieve their purposes. There is still global poverty ravaging the world population, even among the rich and developed countries of the world.
In most developing countries, their national governments are traditionally entrenched as anti-developmental. While they make long and meaningless speeches at world fora, back home they do not walk their talk and so often renege on their promises. This is why it seems that the impact of these world bodies are not being felt. National governments must be able to show responsibility to allow the effects of monetary policies and agreements to benefit the poor and the vulnerable.
Explanation:
The World Bank is an international body of the United Nations with about 189 member-countries. It works with developing countries to reduce poverty, increase access to wealth, and promote global prosperity. The IMF is responsible for ensuring that the international monetary system is operational and stable to ginger sustainable global economic growth.
Webb, Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect labor $5.00 Indirect materials 2.50 Maintenance .50 Utilities .30 Fixed overhead costs per month are: Supervision $1,200 Insurance 400 Property taxes 600 Depreciation 1,800 The company believes it will normally operate in a range of 4,000 to 8,000 machine hours per month. During the month of August, 2019, the company incurs the following manufacturing overhead costs: Indirect labor $28,000 Indirect materials 16,200 Maintenance 2,800 Utilities 1,900 Supervision 1,440 Insurance 400 Property taxes 600 Depreciation 1,860 Prepare a flexible budget report, assuming that the company used 6,000 machine hours during August.
Answer:
Variable overhead costs per machine hour:
Indirect labor $5.00 Indirect materials $2.50 Maintenance $0.50 Utilities $0.30Total $8.30Fixed overhead costs:
Supervision $1,200 Insurance $400 Property taxes $600 Depreciation $1,800 Total $4,000Flexible Actual Spending
budget expenses variances
Variable costs:
Indirect labor $30,000 $28,000 $2,000 FIndirect materials $15,000 $16,200 $1,200 UMaintenance $3,000 $2,800 $200 FUtilities $1,800 $1,900 $100 UTotal $49,800 $48,900 $900 FFixed costs:
Supervision $1,200 $1,440 $240 UInsurance $400 $400 $0Property taxes $600 $600 $0Depreciation $1,800 $1,860 $60 UTotal $4,000 $4,300 $300 UTotal costs $53,800 $52,300 $600 F
Which of the following is the least effective action individuals and families can take to protect the environment? Limiting the number of children they have Monitoring and enforcing regulations Choosing products and services from green companies Educating themselves on community and global environmental issues
Answer:
Monitoring and enforcing regulations.
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The manager of a commercial building has many responsibilities in connection with the operation and maintenance of the structure. The manager would normally be considered the agent of
Answer:
agent of the building's owner
Explanation:
In such a scenario, the manager would normally be considered the agent of the building's owner. This is because the manager acts on behalf of the building owner since all of the tasks that they are responsible for have been specified by the owner and benefit the owner. Also, the manager deals with the building's tenants on behalf of the owner so that he does not have to take time out of his day to do so.
1. A financial market in which only short-term debt instruments (generally those with original maturity of less than one year) are traded. 2. A financial market in which securities that have been previously issued can be resold. 3. A financial market in which new issues of a security, such as a bond or a stock, are sold to initial buyers by the corporation or government agency borrowing the funds. 4. A market in which longer-term debt (generally those with original maturity of one year or greater) and equity instruments are traded. 5. A market where bonds or mortgages, which are contractual agreements by the borrower to pay the holder of the instrument fixed dollar amounts at regular intervals until a specified date when a final payment is made, are traded. 6. A market in which dealers at different locations who have an inventory of securities stand ready to buy and sell securities to anyone who comes to them and is willing to accept their price.
Answer:
1. A financial market in which only short-term debt instruments (generally those with original maturity of less than one year) are traded. ⇒ MONEY MARKET.
2. A financial market in which securities that have been previously issued can be resold. ⇒ SECONDARY MARKET.
3. A financial market in which new issues of a security, such as a bond or a stock, are sold to initial buyers by the corporation or government agency borrowing the funds. ⇒ PRIMARY MARKET
4. A market in which longer-term debt (generally those with original maturity of one year or greater) and equity instruments are traded. ⇒ CAPTAL MARKET
5. A market where bonds or mortgages, which are contractual agreements by the borrower to pay the holder of the instrument fixed dollar amounts at regular intervals until a specified date when a final payment is made, are traded. ⇒ DEBT MARKET
6. A market in which dealers at different locations who have an inventory of securities stand ready to buy and sell securities to anyone who comes to them and is willing to accept their price. ⇒ OVER-THE-COUNTER MARKET
Suppose purchasing power parity holds. If the price level in the United States is 100 dollars per good and the price level in Japan is 250 yen per good, then the nominal exchange rate is ________ yen per dollar.
Answer: 2.5 Yen
Explanation;
The Economic theory of Purchasing Power Parity when held, believes that prices of goods in different countries are the same if their exchange rates are taken into account.
For the above therefore it means that the price of the good is the same in both the US and Japan barring exchange rates.
Exchange rate is;
$100 = ¥250
$1 = 250/100
$1 = ¥2.5
Exchange rate is 2.5 yen per dollar.
What is the yield to maturity of a bond that pays a 6% coupon rate with semiannual coupon payments, has a par value of $1,000, matures in 15 years, and is currently selling for $803
Answer:
Yield to Maturity = 8.11 %
Explanation:
The Yield to maturity is the discount rate that equates then price of the bonds to the present of cash inflows expected from the bond
The yield on the bond can be determined as follows using the formula below:
YTM = C + F-P/n) ÷ 1/2 (F+P)
YTM-Yield to maturity-
C- annual coupon
F- Face Value
P- Current Price
n- years to maturity
YTM-?, C- 6%× 1000 =60, Face Value - 1,000, P-803, n- 15
YTM = (60 + (1000-803)/15) ÷ ( 1/2× (1000 + 803) )
YTM = 0.0811 × 100 = 8.11 %
Yield to Maturity = 8.11 %
A start-up is expanding overseas and spends an excessive amount of time on
recruiting and hiring activities, hindering its ability to focus on the core aspects of
its business. How can a hHuman Capital Management (HCM) platform provider
benefit this company?
Human capital management platform benefit this company?
A human capital management (HCM) platform can benefit this company in optimizing human resource functions through automation and developing an effective strategy in managing employees.
Some of the advantages of the HCM platform are:
Time reduction of HR activitiesProcessing large volumes of dataIncreased data reliabilityIntegration of employee recordsAssistance in the decision-making processA start-up that is expanding overseas must optimize its processes in order to achieve continuous improvement and total quality.
In a globalized and highly competitive environment, well-structured companies will stand out whose resources are properly managed in order to increase the organization's efficiency and capacity.
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BMM Industries pays a dividend of $2 per quarter. The dividend yield on its stock is reported at 4.8%. What is the stock price?
Firm M has a margin of 7%, turnover of 2.0, sales of $910,000, and average stockholders' equity of $490,000. Required: Calculate Firm M’s average total assets, net income, return on investment (ROI), and return on equity (ROE
Answer:
1. Average total asset = $455,000
2. Net income = $63,700
3. Return on investment = 14%
4. Return on equity (ROE) = 13%
Explanation:
These can be calculated as follows:
1. Average total asset
To calculate this, we use the formula for calculating the Asset turnover ratio as follows:
Asset turnover ratio = Sales / Average total asset ……………………………… (1)
Where;
Turnover = asset turnover ratio = 2
Sales = $910,000
Average total asset = ?
Substituting the values into equation (1) and solve for average total asset, we have:
2 = $910,000 / Average total asset
Average total asset = $910,000 / 2
Average total asset = $455,000
2. Net income
To calculate this, we use the formula for calculating net income margin as follows:
Net income margin = Net income / Sales ……………………………………. (2)
Where,
Margin = Net income margin = 7%, or 0.07
Net income = ?
Sales = $910,000
Substituting the values into equation (2) and solve for net income, we have:
7% = Net income / $910,000
Net income = $910,000 * 7%
Net income = $63,700
3. Return on investment
To calculate this, we use the formula for calculating the return on investment as follows:
Return on investment = Net income / Average total assets ……………… (3)
Where;
Net income = $63,700
Average total asset = $455,000
Substituting the values into equation (3), we have:
Return on investment = $63,700 / $455,000
Return on investment = 0.14, or 14%
4. Return on equity (ROE)
To calculate this, we use the formula for calculating the return on equity (ROE) as follows:
Return on equity (ROE) = Net income / Average stockholders' equity…….. (4)
Net income = $63,700
Average stockholders' equity = $490,000
Substituting the values into equation (4), we have:
Return on equity (ROE) = $63,700 / $490,000
Return on equity (ROE) = 0.13, or 13%
Murray Motor Company wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay dividends (D1) of $3.00 per share, and the current price of its common stock is $60 per share. The expected growth rate is 8 percent.
a. Compute the cost of retained earnings (Ke). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Cost of retained earnings___%
b. If a $5 flotation cost is involved, compute the cost of new common stock (Kn). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Cost of new common stock ____%
Answer:
a. Compute the cost of retained earnings (Ke)
$60 = $3 / (Ke - 8%)
Ke - 8% = $3 / $60 = 5%
Ke = 13%
b. If a $5 flotation cost is involved, compute the cost of new common stock (Kn).
$60 (1 - $5/$60) = $3 / (Kn - 8%)
$55 = $3 / (Kn - 8%)
Kn - 8% = $3 / $55 = 5.45%
Kn = 13.45%
Flotation costs reduce the amount of money that the company receives for every new stock that it issues, therefore, it increases the cost of new stocks.
After analyzing its own resources and unique abilities, a company is now trying to determine what group of customers it can satisfy with a good or service. It is in the process of choosing a
Answer: target market
Explanation: A target market is simply a group of people whose needs and preferences match the product range of a company and to whom those products are marketed, often times actively. As such, when the resources and unique abilities of a firm has been analysed, and is now in the process of determining what group of customers it can satisfy with a good or service, then it is in the process of choosing a target market.
Schapp Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: Hours Move time 3.8 Wait time 11.6 Queue time 8.0 Process time 2.7 Inspection time 1.6 The throughput time was:
Answer:
the throughput time is 16.1 hours
Explanation:
The computation of the throughput time is shown below:
Move time 3.8
Queue time 8.0
Process time 2.7
Inspection time 1.6
Throughput time 16.1 hours
Hence, the throughput time is 16.1 hours
We simply added the above times so that the correct time could come
Hughey Co. as lessee records a capital lease of machinery on January 1, 2011. The seven annual lease payments of $350,000 are made at the end of each year. The present value of the lease payments at 10% is $1,704,000. Hughey uses the effective-interest method of amortization and sum-of-the-years'-digits depreciation (no residual value). Round to the nearest dollar.
a) Prepare an amortization table for 2 011 and 2012.
b) Prepare all of Hughey's journal entries for 2011.
Answer:
Both requirements are solved below
Explanation:
An amortization table can be made as follows
DATA
Lease term = 7years
annual lease payments = $350,0000
Present value of the leases payment = $1,704,000
Implicit interest rate = 10%
Requirement A Amortization table for 2011 and 2012
Date Annual payment Effective decreased Balance
interest liability $1,704,000
12/31/11 $350,000 $170,400 $179,600 $1524,400
12/31/12 $350,000 $152,440 $197,560 $1,326,840
Requirement B journal entries for 2011
January 1
Entry
DEBIT CREDIT
Leased machinery $1,704,000
Lease liability $1,704,000
December 31
Entry
DEBIT CREDIT
Interest expense $170,400
Lease liability $179,600
Cash $350,000
December 31
Entry
DEBIT CREDIT
Depreciation expense(w) $426,000
Accumulated depreciation $426,000
Working
Sum of the years = (7+6+5+4+3+2+1) = 28
Cost = $1,704,000
Residual value = $0
Estimated life = 7years
Depreciation expense = $1,704,000 x 7/28
Depreciation expense = $426,000
During the year, Wright Company sells 500 remote-control airplanes for $110 each. The company has the following inventory purchase transactions for the year. Date Transaction
Number of Units Unit Cost Total Cost
Jan. 1 Beginning inventory 60 $66 $3,960
May. 5 Purchase 280 69 19,320
Nov. 3 Purchase 230 74 17,020
570 $40,300
Calculate ending inventory and cost of goods sold for the year, assuming the company uses FIFO.
Answer:
$5,180 and $35,120
Explanation:
The computation of the cost of goods sold and the ending inventory is shown below:
There are 500 unit sold so according to that the cost of goods sold is
Jan 1 60 units $66 $3,960
May 5 280 units $69 $19,320
Nov 3 160 units $74 $11,840
Cost of goods sold $35,120
Now the ending inventory is
Since there is a 70 ending inventory units i.e comes from
= 570 units - 500 units
= 70 units
So this should be at $74
i.e $5,180
On January 1, 2018, Lizzy's Lemonade issues 5%, 20-year bonds with a face amount of $81,000 for $71,638, priced to yield 6%. Interest is paid semiannually. What amount of interest expense will be recorded on June 30, 2018, the first interest payment date
Answer:
The amount of $2,149.14 will be recorded on June 30, 2018 , the first interest payment date.
Explanation:
The data below were extracted from the above information
Face amount $81,000
rate 5%
Issue price $71,638
Yield 6%
Since we already know that interest is paid semi annually, then ;
Amount of interest expense will be = issue price × yield
= $71,638 × 6% × 1/2
= $2,149.14
Amount of interest expense is therefore $2,149.14, to be recorded on June 30, 2018, the first interest payment date.
The following information was available for the year ended December 31, 2013: Sales $ 520,000 Dividends per share $ 1.36 Net income 74,480 Earnings per share 3.00 Average total assets 820,000 Market price per share at year-end 28.50 Average total stockholders’ equity 380,000 Required: a. Calculate margin, turnover, and ROI for the year ended December 31, 2013. (Do not round intermediate calculations and ro
Answer:
Margin ratio = 14.32%
Assets turnover ratio = 63.41%
Return on investment = 9.08%
Explanation:
The computation of margin, turnover, and ROI for the year is shown below:-
Margin ratio = Net income ÷ Sales
= $74,480 ÷ $520,000
= 0.1432
or
= 14.32%
Assets turnover ratio = Sales ÷ Average total assets
= $520,000 ÷ $820,000
= 0.6341
or
= 63.41%
Return on investment = Net income ÷ Average total assets
= $74,480 ÷ $820,000
= 0.0908
or
= 9.08%
Use information from the Washington Post article "Why We've Been Hugely Underestimating the Overfishing of the Oceans" to determine whether each statement is true or false.
a. According to the Food and Agriculture Organization of the United Nations (FAO), worldwide catches peaked in 2001 at 86 million tons.
b. Using catch reconstruction, researchers estimate that the actual peak catch was 50% larger than the reported peak catch.
c, Catch reconstruction shows that, since the peak, catches have been increasing, not decreasing as previously reported.
d. The Sea Around Us Project found several problems with the FAO data, such as the fact that data that were not available were reported as catches of zero fish.
Answer:
"Why We've Been Hugely Underestimating the Overfishing of the Oceans"
Determining whether each statement is true or false:
a. False
b. True
c. False
d. True
Explanation:
The article "Why We've Been Hugely Underestimating the Overfishing of the Oceans," was published by the Washington Post on January 19, 2016. It was written by Chelsea Harvey. It tried to show how the world fish stock had been declining due to overfishing. This is why it provided a report contrary to the FAO report.
While the FAO report noted that the peak of worldwide catches was at 86 million tons in 1996, the contrary and independent report, using "catch reconstruction" showed that the peak was at 130 million tons in 1996. The reconstructed research also showed that worldwide fish catches had suffered declines ever since the 1996 peak, thereby threatening "world food security and marine ecosystems". The contrary report also suggested that all stakeholders must collaborate so that fish stocks can rebuild naturally.
Two mutually exclusive projects have an initial cost of $60,000 each. Project A produces cash inflows of $30,000, $37,000, and $20,000 for Years 1 through 3, respectively. Project B produces cash inflow of $80,000 in Year 2 only. The required rate of return is 10 percent for Project A and 11 percent for Project B. Which project(s) should be accepted and why
Answer:
Project A should be accepted because the NPV is higher. this means that project A is more profitable than project B
Explanation:
Net present value van be used to determine which project should be accepted.
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
For project A :
Cash flow in year 0 = $-60,000
Cash flow in year 1 = $30,000
Cash flow in year 2 = $37,000
Cash flow in year 3 = $20,000
I = 10%
NPV = $12,877.54
For project B :
Cash flow in year 0 = $-60,000
Cash flow in year 1 = $0
Cash flow in year 2 = $80,000
Cash flow in year 3 = $0
I = 11%
NPV = $4,929.79
Project A should be accepted because the NPV is higher. this means that project A is more profitable than project B
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Niles believes that the reports are true and does not intend to deceive Prime Business, but does not check the reports before certifying them. Can Niles be held liable to Prime Business
The complete question is:
Niles, an accountant, certifies several audit reports on Optimal Operational Processes, Inc., Nile's client, knowing that the company intends to use the reports to borrow money from Prime Business Lending Company to buy new equipment. Niles believes that the reports are true and does not intend to deceive Prime Business, but does not check the reports before certifying them. Can Niles be held liable to Prime Business?
Answer:
Yes can be held liable
Explanation:
An accountant that certifies audits of a company is expected.to do his due diligence. In this scenario Niles believed that the reports are true without checking them.
This is an act of negligence on Nile's part and he can be held liable for damages resulting from the oversight.
The certified audit report is not only being used by Prime business but other third parties like investors and other stakeholders. Any of these can hold Mike's liable for any misleading information in the audit reports
Suppose that the risk-free rates in the United States and in the United Kingdom are 6% and 4%, respectively. The spot exchange rate between the dollar and the pound is $1.60/BP. What should the futures price of the pound for a one-year contract be to prevent arbitrage opportunities, ignoring transactions costs. Group of answer choices $1.63/BP $1.57/BP $1.60/BP $1.66/BP $1.70/BP
Answer:
$1.57/BP
Explanation:
Calculation for the futures price of the pound for a one-year contract.
Using this formula
Futures price =Spot exchange rate×(1+Risk-free rates in United States/1+Risk-free rates in United Kingdom
Let plug in the formula
Futures price=$1.60×(1.04/1.06)
Futures price= $1.60×(0.9811)
Futures price=$1.57/BP
Therefore the futures price of the pound for a one-year contract to prevent arbitrage opportunities will be $1.57/BP.
When a job is completed and all costs have been accumulated on a job cost sheet, the journal entry that should be made is:
a. Increase Finished Goods Inventory and decrease Raw Materials Inventory, Factory Labor, and Manufacturing Overhead.
b. Increase Work in Process Inventory and decrease Raw Materials Inventory. Factory Labor, and Manufacturing Overhead.
c. Increase Raw Materials Inventory and decrease Work in Process Inventory.
d. Increase Finished Goods Inventory and decrease Work in Process Inventory.
Answer:
increased finished goods
The journal entry that should be made when a job is completed and all costs have been accumulated on a job cost sheet is Increase Finished Goods Inventory and decrease Work in Process Inventory. Option D is the correct answer.
When a job is completed and all costs related to that job have been accumulated on a job cost sheet, it means that the work on the job has been finished and the product is ready for sale. Option D is the correct answer.
At this point, the costs incurred during the production process need to be transferred from the Work in Process Inventory to the Finished Goods Inventory. The Work in Process Inventory account represents the costs of partially completed products that are still in the production process. As the job is completed, these costs need to be moved out of Work in Process Inventory and into Finished Goods Inventory.
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Moorcroft’s assistant controller suggested that Moorcroft hire a part time collector to encourage customers to pay more promptly and to reduce the amount of uncollectible accounts. Sales are still 40% cash and 60% credit but the assistant controller predicted that this would cause credit sales to be collected 30% in the month of the sale, 50% in the month following sale, and 18% in the second month following sale; 2% are uncollectible.Prepare a schedule of expected collections from customers for June. How did these changes impact cash collections?
Answer:
The budgeted sales are missing, so I looked for them. I found the following question, hopefully it will be similar:
Month Sales
April $300,000
May $320,000
June $370,000
Schedule of expected collections
For the month of June, 202x
Cash sales during June = $370,000 x 40% = $148,000
Collection from June's credit sales = $222,000 x 30% = $66,600
Collection from May's credit sales = $192,000 x 50% = $96,000
Collection from April's credit sales = $180,000 x 18% = $32,400
Total cash collections during June = $343,000
Since the cost of the part time collector is $1,000 per month, and the total uncollectible accounts reduce from 4% to 2%, which represents $7,400 for June's sales, I would recommend hiring the collector.
Beck Kubiak wishes to purchase new appliances for her home. The total cost for the appliances is $2,900. To finance the purchase, Becky must pay 20% down, with the balance being financed with a 24-month installment loan with an APR of 8.5%. Determine Becky's total finance charge and her monthly payment
Answer:
total finance charge = $203.08
her monthly payment = $105.13
Explanation:
The Loan amount = Cost of Appliance - Down Payment
= $2,900 - ($2,900 × 20%)
= $2,320
Change the APR to nominal compounding,
Using a Financial Calculator, this will be :
8.50 % Shift EFF%
12 Shift P/YR
Shift NOM % = 8.19%
Then calculate the monthly payment as follows :
Pv = $2,320
n = 24
p/yr = 12
r = 8.19%
Fv = $0
PMT = ?
Using a Financial Calculator, monthly payment, PMT is $105.13
Total Finance Charge will then be obtained from the amortization schedule from the First Period to the 24th Period and this will be : $203.08.
XARA is a newly emerging wine company. After extensive market research, XARA divides its market into wine enthusiasts, casual drinkers and restaurants. Each category has its own needs, traits and marketing goals. In this scenario, XARA has engaged in market _________.
Answer: segmentation
Explanation:
Market segmentation is when a business market that is made up of different customers is being divided, into smaller groups or segments based on some characteristics.
From the question, we are informed that XARA is a newly emerging wine company. After extensive market research, XARA divides its market into wine enthusiasts, casual drinkers and restaurants. Each category has its own needs, traits and marketing goals. In this scenario, XARA is using market segmentation.
Market research is a systematic attempt to acquire data about target markets and customers: learn everything you can about them, starting with their names. It is considered as the crucial part of business strategy.
XARA is a newly emerging wine company. After extensive market research, XARA divides its market into wine enthusiasts, casual drinkers and restaurants. Each category has its own needs, traits and marketing goals. In this scenario, XARA is using market segmentation.
Market segmentation is when a business market that is made up of different customers is being divided, into smaller groups or segments based on some characteristics.
To know more about Market, refer to the link:
https://brainly.com/question/13959285
dazzle, inc. produces beads for jewelry making use the journal entry to record production activities for direct labor usage is
Answer:
Debit Work in Process Inventory $180,000; credit Factory Wages Payable $180,000.
Explanation:
The journal entry to record the direct labor usage is shown belwo:
Work in process inventory Dr
To factory wages payable
(Being the direct labor usage is recorded)
For recording this we debited the work in process as it increased the assets and credited the factory wages payable as it also increased the liabilities
Moreover, when the wages is applied in the production level so the respective account is debited and credited
A comparative balance sheet and income statement is shown for Cruz, Inc.
CRUZ, INC. Comparative
Balance Sheets December 31, 2015 2014
Assets
Cash $ 94,800 $ 24,000
Accounts receivable, net 41,000 51,000
Inventory 85,800 95,800
Prepaid expenses 5,400 4,200
Total current assets 227,000 175,000
Furniture 109,000 119,000
Accum. depreciation—Furniture (17,000) (9,000)
Total assets $ 319,000 $ 285,000
Liabilities and Equity
Accounts payable $ 15,000 $ 21,000
Wages payable 9,000 5,000
Income taxes payable 1,400 2,600
Total current liabilities 25,400 28,600
Notes payable (long-term) 29,000 69,000
Total liabilities 54,400 97,600
Equity Common stock, $5 par value 229,000 179,000
Retained earnings 35,600 8,400
Total liabilities and equity $ 319,000 $ 285,000
CRUZ, INC.
Income Statement
For Year Ended December 31, 2015
Sales $ 488,000
Cost of goods sold 314,000
Gross profit 174,000
Operating expenses
Depreciation expense $ 37,600
Other expenses 89,100 126,700
Income before taxes 47,300
Income taxes expense 17,300
Net income $ 30,000
1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2015?
2. Assume that no additional notes payable are issued in 2015. What cash amount is paid to reduce the notes payable balance in 2015?
Answer:
1. $2,800
2. $40,000
Explanation:
1. The computation of cash dividends is paid during 2015 is shown below:-
Retained earnings
Dividend paid $2,800 Beginning balance $8,400
($8,400 + $30,000
- $35,600) Net income $30,000
Total $2,800 $38,400
Ending balance $35,600
Therefore cash dividends is paid during 2015 is 2,800
2. The computation of cash amount is paid to reduce the notes payable balance in 2015 is shown below:-
Notes payable
Cash paid $40,000 Beginning balance $69,000
($69,000 - $29,000)
Total $40,000 $69,000
Ending balance $29,000
Therefore cash amount is paid to reduce the notes payable balance
in 2015 is $40,000