Answer:
TVG
Times Interest Earned Ratio (TIER) = Earnings Before Interest & Taxes divided by Interest Expense
= $300,000/$$80,000 = 3.75 times
Explanation:
a) TVG Income Statement:
Revenue $3,000,000
Cost of goods sold 2,500,000
Gross profit $500,000
Depreciation 200,000
EBIT $300,000
Interest Expense 80,000
Pre-tax Income $220,000
b) TVG's TIER shows the number of times that its earnings before interest and taxes covers the interest expense. It shows the ability of the TVG to settle its maturing debt obligations from current earnings. It is an important financial performance measure which potential investors in TVG will use to gauge the ability of TVG to meet financial obligations from the earnings it generates.
Which of the following is true of good salespeople?
A. They know how to oversell their product so the customer can't say no.
B. They have tenacity but know when to walk away and move on to the next sales prospect.
C. They make promises they may not be able to keep in order to secure a sale.
D. They don't leave voice mail messages.
Answer:
Correct answer is A, They know how to oversell their product so the customer can't say no. Explanation: Good salespeople are those who sell more and more of their company's product.
A retired customer has an existing stock portfolio held in a cash account. He has heard that "leveraging" his portfolio can increase his return. The portfolio holds blue chip stocks that pay current dividends. He wants to transfer the positions to a margin account and use them as collateral to buy more stocks of the same blue chip companies. Which statement is TRUE
Answer: C. This is not an appropriate strategy because the customer's income will decline
Explanation:
A. The options for the question are:
This is an appropriate strategy that will increase the customer's income
B. This is not an appropriate strategy because the customer's tax liability will increase if the securities appreciate and are sold
C. This is not an appropriate strategy because the customer's income will decline
D. This is an appropriate strategy because the customer has the potential for larger capital gains
From the information that have been provided in the question, we can see that the customer needs income but based on the information that have been provided in the question, the interest that will be charged will eat up the dividend paid by the the stock.
Therefore, this is not an appropriate strategy because the customer's income will decline.
In its third year, a project is expected to produce earnings before interest and taxes of $671,551 and depreciation expense of $125,193. If the company’s tax rate is 34%, what is the project’s expected operating cash flow?
Answer:
Operating cash flow= $568,416.66
Explanation:
Giving the following information:
Earnings before interest and taxes= $671,551
Depreciation expense= $125,193.
Tax rate= 34%
To calculate the operating cash flow, we need to use the following structure:
EBIT= 671,551
Tax= (671,551*0.34)= (228,327.34)
Depreciation= 125,193
Operating cash flow= 568,416.66
Suppose you observe the following situation: Security Beta Expected Return Pete Corp. 1.80 .190 Repete Co. 1.49 .163 a. Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the risk-free rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
a. 12.03%
b. 3.32%
Explanation:
The computation is shown below:
As we know that
Expected rate of return = Risk free rate of return + [Beta × Risk premium]
Let us assume Risk free rate of return be x and Risk premium be y
Now the equations are as follows
For Pete Corp
19 = x + 1.80y ...................... (1)
For Repete Corp
16.3 = x + 1.49y .....................(2)
Now Solving (1) and (2)
After solving we get
y = 8.70967741935
x = 3.3225806452
i.e Risk free rate = x = 3.32%
And, the Risk premium = 8.70967741935%
So,
Expected return on market = Risk free rate + Risk premium
= 3.3225806452 + 8.70967741935
= 12.03%
Bluegill Company sells 7,500 units at $320 per unit. Fixed costs are $120,000 and income from operations is $1,560,000. Determine the following: Round the contribution margin ratio to two decimal places.
a. Variable cost per unit $
b. Unit contribution margin $ per unit
c. Contribution margin ratio %
Answer:
a) $96 per unit
b) $224 per unit
c) 70%
Explanation:
We will have to compute variable cost and contribution margin
Sales $2,400,000
7,500 × 320
Less; Variable cost $720,000
Contribution margin $1,680,000
Less : Fixed cost $120,000
Operating income. $1,560,000
a) Variable cost per unit
= Total variable cost ÷ Total number of units
= $720,000 ÷ 7,500 units
= $96 per unit
b) Unit contribution margin
= Selling price per unit - Variable cost per unit
= $320 - $96
= $224
c) Contribution margin ratio
= (Selling price per unit - Variable cost per unit) ÷ Selling price per unit × 100
= ($320 - $96) ÷ $320 × 100
= $224 ÷ 320 × 100
= 70%
A perpetuity provides for continuous payments. The annual rate of payment at time t is { 1, 0 <= t <10 (1.03)^t-10, t >=10 Using an annual effective interest rate of 6%, the present value at time t = 0 of this perpetuity is x. Calculate X. a. 27.03 b. 30.29 c. 34.83 d. 38.64 e. 42.41
Answer:
b. 30.29
Explanation:
Perpetuity is the state that lasts forever. In statistics the benefit that last for an indefinite period of time is calculated through perpetuity method.
1/1.06 + 1/1.06^2 +1/1.06^3 + 1/1.06^4 + 1/1.06^5 + 1/1.06^6 + 1/1.06^7 + 1/1.06^8 + 1/1.06^9 =
0.942 + 0.893 + 0.87 + 0.821 + 0.791 + 0.752 + 0.691 + 0.652 + 0.604
= 7.017
7.017 / 0.23 = 30.29
BWCT is a mining company that operates the world's exclusive mining site to harvest a new metal. Assuming it is a monopoly, which of the following statements is least likely concerning entry and exit in this market currently?
a. There is predatory price cutting being done by BWCT to keep new companies out of mining.
b. There is tight control over a key resource by BWCT.
c. There is an economy of scale at work making it cheap to produce more products.
d. There are government regulations enabling firms to enter the market easily.
Answer:
D; There are government regulations enabling firms to enter the market easily
Explanation:
Assuming BWCT as a monopoly, statements is least likely concerning entry and exit in this market currently there are government regulations enabling firms to enter the market easily. Thus the correct answer is D.
What is a monopoly?Monopoly refers to a single rule of the seller in the market. This is a type of busines structure where there are single busines that control the ownership of the market and restrict entries to give competition.
This monopoly structure of business led to high barriers to entry as the complete market is controlled by a single business entity which restricts others to enter. As there is no competition in the market the firms involved in monopoly gain more profit maximization.
The discrimination of price is also controlled as there is a single seller who sold the products and there are many buyers. So the seller can change the price of the product at any time.
Therefore, option D There are government regulations enabling firms to enter the market easily is the appropriate answer.
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The unfavorable volume variance may be due to all of the following factors except:_______
a. failure to maintain an even flow of work
b. machine breakdowns
c. failure to obtain enough sales orders
d. unexpected increases in the cost of utilities
Answer:
d. unexpected increases in the cost of utilities
Explanation:
there are several volume variances:
direct materials volume variancedirect labor volume variancemanufacturing overhead volume variance sales volume varianceUtilities are part of manufacturing overhead, but volume variances using the standard rates, so an unexpected increase in the cost of utilities will not affect the overhead volume variance.
The unfavorable volume variance can not be due because of unexpected Increases in the cost of utilities
Unfavorable volume variance means that the amount of applied fixed manufacturing overhead costs is less than the budgeted fixed manufacturing overhead costs
The machine breakdowns will affect production levels, thus, resulting to unfavorable volume variance.
The failure to maintain even flow of work will impact the production quantities, thus, resulting to unfavorable volume variances
The failure to obtain enough sales order will limit production quantities, thus, resulting to unfavorable volume variances.
Thus, the Option D is correct because unfavorable volume variance can not be due because of unexpected Increases in the cost of utilities
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Link Co. purchased machinery that cost $3,000,000 on January 4, 2016. The entire cost was recorded as an expense. The machinery has a nine-year life and a $200,000 residual value. The error was discovered on December 20, 2018. Ignore income tax considerations. Before the correction was made, and before the books were closed on December 31, 2018, retained earnings was understated by:_________.a. $3,000,000.
b. $2,066,667.
c. $2,377,778
d. $2,333,333.
Answer:
c. $2,377,778
Explanation:
Recording the entire cost as expense would have understated Retained Earnings by $3,000,000
Annual Depreciation on machine = Purchase cost - Residual value / Useful life
= ($3,000,000 - $200,000) / 9
= $311,111
Depreciation would have been recorded for $622222 for 2 years had machinery been correctly recorded ($311,111 * 2) = $622,222
On December 20, 2018, the net understatement of Retained Earnings = $3,000,000 - $622,222
= $2,377,778
The following costs result from the production and sale of 4,350 drum sets manufactured by Tight Drums Company for the year ended December 31, 2017. The drum sets sell for $285 each. The company has a 40% income tax rate.
Variable production costs
Plastic for casing $ 104,400
Wages of assembly workers 387,150
Drum stands 143,550
Variable selling costs
Sales commissions 95,700
Fixed manufacturing costs
Taxes on factory 13,500
Factory maintenance 27,000
Factory machinery depreciation 87,000
Fixed selling and administrative costs
Lease of equipment for sales staff 27,000
Accounting staff salaries 77,000
Administrative management salaries157,000
Required:
1. Prepare a contribution margin income statement for the company.
2. Compute its contribution margin per unit and its contribution margin ratio.
Prepare a contribution margin income statement for the company.
Answer:
1) $120,450
2a) $117 per unit
b) 41.05
Explanation:
1. Contribution margin income statement
Sales $1,239,750
Less Variable costs
Plastic for casting. ($104,400)
Wages of assembly workers ($387,150)
Drum stands ($143,550)
Sales commission ($95,700)
Contribution margin $508,950
Less fixed costs
Taxes on factory. ($13,500)
Factory maintenance. ($27,000)
Factory machinery depreciation ($87,000)
Lease of equipment for sales staff ($27,000)
Accounting staff salaries ($77,000)
Admin management salaries ($157,000)
Net income $120,450
2a Contribution margin per unit
= Contribution / Unit sales
= $508,950 / 4,350 units
= $117 per unit
b. Contribution margin ratio
= Contribution margin per unit / Sales per unit × 100
= $117 / $285 × 100
= 41.05%
Desktop Computer Company would like to calculate their cash conversion cycle. What factors are included in computing this metric?
Answer:
The answer is:
1. Days inventory outstanding i.e the number of days it takes to sell its inventories
2. Days sales outstanding i.e the number of days it takes to collect it receivables
3. Days payables outstanding i.e the number of days it takes to pay its payables.
Explanation:
Cash conversion cycle is the time(number of days) it takes a business to convert its money tied in inventory to cash through sales from customers.
In computing cash conversion cycle, the following are included:
1. Days inventory outstanding i.e the number of days it takes to sell its inventories
2. Days sales outstanding i.e the number of days it takes to collect it receivables
3. Days payables outstanding i.e the number of days it takes to pay its payables.
The formula for cash conversion cycle is Days inventory outstanding + Days sales outstanding - Days payables outstanding
Assume the annual retention rate for a cell phone subscriber is 70 percent and the customer generates $300 per year in profit. Assuming an annual discount rate of 8 percent, compute the value of a customer.
Answer:
The value of a customer is $193.2.
Explanation:
The value of the customer can be calculated by considering the profit they generate, retention rate, and the discount.
Value of a customer = Profit per year * Retention rate * (1 - discount)
Value of a customer = 300 * 0.7 * (1 - 0.08)
Value of a customer = 300 * 0.7 * 0.92
Value of a customer = 193.2
Thus, the value of a customer is $193.2.
1. Name one practice that is prohibited under Section 8 of RESPA.
2. List at least three categories under ECOA on which creditors may not base credit decisions.
3. Define rescission as it relates to a mortgage loan transaction.
4. List at least two practices that are not prohibited with regard to appraisers.
Answer:
The answer is below
Explanation:
1. Pactice that is prohibited under Section 8 of RESPA includes the following:
i. Payment or Receive of "things of value" for business referrals
ii. Fee splitting when the job or work is yet to be done, to earn a part of the fee
iii. Excessive charges such as mark-ups, double billing, etc.
iv. Void agreement or understanding with regard to referrals and settlement services
2. Categories under ECOA on which creditors may not base credit decisions are:
Race, Color, Religion, Nationality, Sex, Marital status, Age, Receipt of public assistance and Exercise of rights under the Consumer Credit Protection Act
3. Rescission is a term that describes a form of legal remedy that voids an agreement between two parties and take back both parties to the initial state before the transaction.
Recission right is however applicable to specific loan transactions, for example refinances and home equity lines of credit.
4. Practices that are not prohibited with regard to appraisers.
i. Payment or Receive of "things of value" for business referrals
ii. Fee splitting when the job or work is yet to be done, to earn a part of the fee
iii. Excessive charges such as mark-ups, double billing, etc.
iv. Void agreement or understanding with regard to referrals and settlement services.
The answer to the queries given above are stated as follows:-
1. Cash or other 'things of value' as defined under section 8 of the Act are stated to be not to be used by any such firm for the purpose of business referrals.
2. A banking or financial institutions providing credit facilities may not base their credit decisions on factors like race, sex, religion, nationality, beliefs, etc which are irrelevant to the credibility of a borrower in the market.
3. Rescission relates to the revoking, calling back, reversing the judgement passed by the law and make necessary amendments to the law as may be deemed fit.
4. An appraiser may not try to influence the property through the way of wrongful behavior like fraud,coercion or impersonation. And any other such act which relates to criminal conduct must be avoided by the appraiser.
Things of value refer to such assets or class of assets that are easily liquidated and their values are easily realizable due their liquidity and acceptability in the market.There shall be no discrimination for providing credit facilities on the bases of unrelated phenomenon such as sex, religion, race, castes of a person and shall be purely based on credibility of such person.Rescission relates to the mortgage loan transaction in a way that it is available to the parties of such transaction in cases where there is refinancing or a home mortgage against finance facility.Any such agreements which are void ab initio, void during the contract or voidable at the end of any party are not allowed for appraisers so it can be concluded that only legally bound contracts are allowed.There shall be no acts of impersonation, frauds leading to coercion are also prohibited in case of appraisers of a property so only genuine appraisal of a property is allowed.Hence, the correct statements are mentioned above for all the queries as asked under the headings of 1, 2, 3 and 4 and hold true.
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If government spends $80 billion at each level of GDP, and imposes a lump-sum tax of $100 then equilibrium GDP will be:_________
Answer: $350
Explanation: The equilibrium GDP or output of an economy is such that an economy output is level or equal to the total amount of planned spending. it is usually equal to the amount produced, or GDP. which is, equilibrium GDP = ( C + Ig ). Consumption expenditures usually rise with GDP while planned gross investment expenditures are independent of whatever level the GDP gets to.
The central problem in product-oriented layout planning is?
Answer: The minimizing the imbalance in the workloads among workstations.
Explanation:
Workspace can inspire informal and productive encounters if it balances what three physical and social aspects.
IBM expects to pay a dividend of $2 next year and expects these dividends to grow at 6% a year. The price of IBM is $90 per share. What is IBM's cost of equity capital?
Answer:
Cost of equity = 8.22%
Explanation:
Cost of equity = Dividend per share /current market value + growth rate of dividend
Cost of equity = 2/90 + 6%
Cost of equity = 0.0222 + 6%
Cost of equity =0.0222 + 0.06
Cost of equity = 0.0822
Cost of equity = 8.22%
A stock has a beta of 1.15 and a reward-to-risk ratio of 6.15 percent. If the risk-free rate is 3 percent, what is the stock's expected return
Answer:
10.07%
Explanation:
According to CAPM
the stock's expected return = risk free rate + (beta x reward-to-risk ratio )
3% + (6.15% x 1.15) = 10.07%
Suppose Income Summary received a debit of $75,000 and a credit of $100,000. The net income or net loss for the period must have been:
Answer: Net income of $25000
Explanation:
Suppose Income Summary received a debit of $75,000 and a credit of $100,000, there will be a net income of $25000.
This is because we've a credit of $100,000 and a debit of $75,000 and since the credit is higher than the debit, it shows that there will be a net income.
A company estimates that an average-risk project has a wacc of 10 percent, a below-average risk roject has a cost of capital of 8 percent, and an above-average risk project has a cost of capital of 15 percent. Which of the following independent projects should the company accept?
a. Project A has average risk and an IRR = 9 percent.
b. Project B has below-average risk and an IRR = 8.5 percent.
c. Project C has above-average risk and an IRR = 11 percent.
d. All of the projects above should be accepted.
e. None of the projects above should be accepted.
Answer:
I feel so bad for you i don't have that work yet
Which of the following enables employees to deliver valuable results more quickly, improve their productivity, and get products and new ideas to market faster?a. Adhering to time-tested methods and conceptsb. Preventing the dissemination of explicit knowledgec. Avoiding collaboration among contractors, suppliers, and other business partnersd. Sharing experience and expertise of employees across an organization
Answer:
d. Sharing experience and expertise of employees across an organization
Explanation:
It is important for an organization to allow its employees to share and build experience and expertise. Workers reap the moment more quickly when there is no office and what it does and when new employees or employees moving to new positions are able to share ideas and experiences. It allows employees to deliver more valuable results faster, improve productivity and deliver market products and new ideas faster.HOW CAN I CREATE A PERFECT SALES STRATEGY?
Answer:
B2B marketers and businesses are using LinkedIn automation to strengthen their sales and marketing strategy.
Here is how;
Engage With The Right AudienceTake Advantage of LinkedIn GroupsSend Personlized Outreach MessagesMost of the lead generation and sales tactics on LinkedIn require a lot of time if you choose to do them manually.
price elasticity of demand
Answer:
Price elasticity of demand is a measure of the change in the quantity purchased of a product in relation to a change in its price.
Explanation:
_____ refers to the choices about product attributes, distribution strategy, communication strategy, and pricing strategy that a firm offers its targeted marketsA. Segmentation
B. Supply chain
C. Logistics
D. Marketing mix
E. Media plan
Answer:
D. Marketing mix.
Explanation:
Marketing mix refers to the choices about product attributes, distribution strategy, communication strategy, and pricing strategy that a firm offers its targeted markets.
Generally, a marketing mix is made up of the four (4) Ps;
1. Products: this is typically the goods and services that gives satisfaction to the customer's needs and wants. They are either tangible or intangible items.
2. Price: this represents the amount of money a customer buying goods and services are willing to pay for it.
3. Place: this represents the areas of distribution of these goods and services for easier access by the potential customers.
4. Promotions: for a good sales record or in order to increase the number of people buying a product and taking services, it is very important to have a good marketing communication such as advertising, sales promotion, direct marketing etc.
A company has a process that results in 24.000 pounds of Product A that can be sold for $8 per pound. An alternative would be to process Product A further at a cost of $160,000 and then sell it for $14 per pound. Should management sell Product A now or should Product A be processed further and then sold
Answer:
Yes the management should sell product A and processed further
Explanation:
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Cullumber Company incurs these expenditures in purchasing a truck: cash price $26,070, accident insurance (during use) $1,780, sales taxes $1,550, motor vehicle license $320, and painting and lettering $2,050.Required:What is the cost of the truck?
Answer:
$29,720
Explanation:
Calculation for the cost of the truck of Cullumber Company
COST OF TRUCK
Purchase Price $26,070
Sales tax $1,550
Insurance during shipping $1,780
Motor vehicle license $320
Total Cost of Truck $29,720
Therefore the cost of the truck for Cullumber Company will be $29,720
Stuart McFarland is sales manager for a hotel. His job entails leading, motivating, and communicating with employees. McFarland’s main management activity is:
Answer:
E. Leadership
Explanation:
Leadership refers to the concept in which the manager or a team leader motivates, leading, communicated with the employees to accomplish common goals and objectives so that the employees could perform better next time at less wastage
Therefore the given scenario represents the leadership management activity
A monopolistically competitive firmA. faces a downward-sloping demand curve and a steeper downward -sloping marginal revenue curve.B. faces a vertical demand curve and identical marginal revenue curveC. Produces a product that is undifferentiated by style, location, or qualityD. faces an upward-sloping demand curveE. faces a downward-sloping demand and a horizontal marginal revenue curve.
Answer:
Option A is correct.
Explanation:
Option A is correct because a monopolistically competitive firm has a downward-sloping demand curve and the marginal revenue curve is steeper than the demand curve that lies below the demand curve. Moreover, in this market, the product sold can be differentiated on the basis of quality. Further, in this market, the marginal cost curve first decreases then start increasing and cuts the marginal revenue curve.
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $302,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $184,000 and its tax rate is 35%, what is the after-tax cash flow from selling it? c. Just before it is about to sell the equipment, Jones receives a new order. It can take the new order if it keeps the old equipment. Is there a cost to taking the order and if so, what is it? Explain. (Assume the new order will consume the remainder of the machine's useful life.) Note: Assume that the equipment is put into use in year 1.
Answer:
a. What is the book value of the equipment?
$86,976b. If Jones sells the equipment today for $184,000 and its tax rate is 35%, what is the after-tax cash flow from selling it?
($184,000 - $86,976) x (1 - 35%) = $97,024 x 65% = $63,065.60c. Just before it is about to sell the equipment, Jones receives a new order. It can take the new order if it keeps the old equipment. Is there a cost to taking the order and if so, what is it?
the cost to taking the new order is the opportunity cost of selling the equipment, which is $63,065.60.Explanation:
MACRS depreciation rate:
Year % Depreciation expense Carrying value
1 20% $60,400 $241,600
2 32% $96,640 $144,960
3 19.20% $57,984 $86,976
4 11.52% $34,790.40 $52,185.60
5 11.52% $34,790.40 $17,395.20
6 5.76% $17,395.20 $0
2.- Se hicieron compras de materia prima por $ 50,000.00 más IVA que se pagaron como sigue:
20% en efectivo; 30% quedamos a deber, y el resto con una transferencia bancaria, según Factura ZX87.
10.- Vendemos como fierro viejo algunos lockers de los empleados que ya estaban sin servir, y nos pagan con cheque que depositamos en el banco, la cantidad de $ 3,000 IVA INCLUIDO. Al mismo tiempo tenemos que reparar uno de los lockers nuevos pues la chapa se echó a perder, el cerrajero nos cobra $300 MÁS IVA que pagamos en efectivo
Alguien me dice como van en un libro diario por favor
no entendi nadita pero que larga tu prwgunta
Cost of Producing Guitars Carlota Music Company estimates that the marginal cost of manufacturing its Professional Series guitars is given by the following in dollars/month when the level of production is x guitars/month.
C '(x) = 0.008x + 90
The fixed costs incurred by Carlota are $8500/month. Find the total monthly cost C(x) incurred by Carlota in manufacturing x guitars/month.
Answer:
The total monthly cost C(x) incurred by Carlota in manufacturing x guitars/month is C(x) = 0.004x^2 + 90x + 8,500.
Explanation:
Given,
C '(x) = 0.008x + 90 ................................... (1)
To obtain the the total monthly cost C(x) incurred by Carlota in manufacturing x guitars/month, we obtain the integral of equation (1) as follows:
[tex]C(x)=\int\limits {C'(x)} \, dx = \int\limits {[0.008x + 90]} \, dx[/tex]
C(x) = (0.008 / 2) x^2 + 90x + F
C(x) = 0.004x^2 + 90x + F .......................... (2)
Where F is the constant.
Since total cost is the addition of the total cost and total variable cost, the F in equation (2) represents the total fixed cost per month.
Since the fixed costs incurred by Carlota are $8500/month, this implies that F = 8,500.
Substituting F = 8,500 into equation (2), we have:
C(x) = 0.004x^2 + 90x + 8,500 <-------------- Total cost per month
Therefore, the total monthly cost C(x) incurred by Carlota in manufacturing x guitars/month is C(x) = 0.004x^2 + 90x + 8,500.