Answer:
The beta of the stock is 0.25 and option C is the correct answer.
Explanation:
The current price of a stock which pays a constant dividend can be determined using the zero growth dividend model of DDM. The formula to calculate the price under this model is,
P0 = Dividend / r
Where,
r is the required rate of return on the stockAs we already know the value of P0 and Dividend, we can plug in these values in the formula and calculate the value of r.
80 = 2 / r
80 * r = 2
r = 2 / 80
r = 2.5% or 0.025
The required rate of return can also be calculated using the CAPM equation. The formula for r under CAPM is,
r = rRF + Beta * (rM - rRF)
Where,
rRF is the risk free raterM is the return on marketTo calculate beta, we will input the values for r, rRf and rM in the CAPM equation.
Let beta be x.
0.025 = 0.01 + x * (0.07 - 0.01)
0.025 - 0.01 = x * 0.06
0.015 / 0.06 = x
x = 0.25
Thus, beta is 0.25
1. ¿Una pequeña panadería que elabora 1,000 panes diarios, podría implementar una gestión de compras para la adquisición de sus insumos? ¿En qué le puede beneficiar?
La respuesta correcta para esta pregunta abierta es la siguiente.
Sí. Definitivamente, una pequeña panadería que elabora 1,000 panes diarios, puede implementar una gestión de compras para la adquisición de sus insumos.
> La manera en la que esta pequeña panadería se puede beneficiar es que estaría implementando un sistema administrativo y operativo ya estructurado que le beneficiaría para eficientar mejor los recursos y organizar mejor sus operaciones.
> Una gestión de compras es una forma efectiva de implementar un procedimiento más productivo en el manejo de los recursos.
> Por medio de esta gestión de compras, el dueño o jefe de la panadería va a poder establecer con claridad un calendario para saber qué cantidad de masas comprar, cuántos kilos, cada cuándo, y con qué proveedores, quienes ofrezcan un mejor precio para los insumos.
Sin duda, aunque sea una pequeña panadería, los beneficios de implementar un sistema de gestión de compras convertiría a este pequeño negocio en una empresa más formal y la ayudaría a prepararse para cuando tuviera que aumentar sus operaciones o pensar en la apertura de una segunda sucursal.
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https://brainly.com/question/16307829?referrer=searchResults
Justin and Lauren are equal partners in the PJenn Partnership. The partners formed the partnership seven years ago by contributing cash. Prior to any distributions, the partners have the following bases in their partnership interests:
Partner Outside Basis
Justin $22,000
Lauren 22,000
On December 31 of the current year, the partnership makes a pro rata operating distribution of:
Partner Distribution
Justin Cash $25,000
Lauren Cash $18000
Property 9,000 (FMV)
($2,000 to partnership)
Requried:
a. What is the amount and character of Justin's recognized gain or loss?
b. What is Justin's remaining basis in his partnership interest?
c. What is the amount and character of Lauren's recognized gain or loss?
d. What is Lauren's basis in the distributed assets?
e. What is Lauren's remaining basis in her partnership interest?
Answer:
PJenn Partnership
a. The amount and character of Justin's recognized gain or loss:
Justin has a recognized gain of $3,000 ($25,000 - $22,000). The character of Justin's recognized gain or loss must have substantial economic effect.
b. Justin's remaining basis in his partnership interest = $1,000 ($2,000/2) in the property distribution to the partnership.
c. The amount and character of Lauren's recognized gain or loss:
Lauren has a recognized gain of $3,000 ($25,000 - $22,000). The character of Justin's recognized gain or loss must have substantial economic effect.
d. Lauren's basis in the distributed assets is $22,000, which is her outside basis.
e.Lauren's remaining basis in her partnership interest = $1,000 ($2,000/2) in the property distribution to the partnership.
Explanation:
a) Data and Calculations:
Partner Outside Basis Partner Distribution
Justin $22,000 $25,000 cash
Lauren 22,000 $18,000 cash + $7,000 in property
Property $2,000 to Partnership
Justin and Lauren's recognized gain or loss is determined by the amount of the sale minus the partner's interest, which is often referred to as the partner's outside basis.
Justin's and Lauren's remaining basis in the partnership is the amount of the fair market value of property remaining after Lauren's share in the property.
On July 31, the company’s Cash account has a $25,274 debit balance, but its July bank statement shows a $26,612 cash balance. 1. Prepare the bank reconciliation for this company as of July 31.
Answer:
A lot of information was missing, so I looked for a similar question but couldn't find one with the same exact numbers, but I believe the following question should be very similar and you can use it as an example:
a.On July 31, the company’s Cash account has a $24,756 debit balance, but its July bank statement shows a $26,449 cash balance.
b.Check No. 3031 for $1,270 and Check No. 3040 for $627 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $411 and Check No. 3069 for $2,038, both written in July, are not among the canceled checks on the July 31 statement.
c.In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent was correctly written and drawn for $1,240 but was erroneously entered in the accounting records as $1,230.
d.A credit memorandum enclosed with the July bank statement indicates the bank collected $9,000 cash on a non-interest-bearing note for Branch, deducted a $45 collection fee, and credited the remainder to its account. Branch had not recorded this event before receiving the statement.
e. A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF.
f.Enclosed with the July statement is a $14 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received.
g.Branch’s July 31 daily cash receipts of $10,152 were placed in the bank’s night depository on that date but do not appear on the July 31 bank statement.
Bank account reconciliation:
Bank account balance July 31, 202x, $26,449
+ deposits in transit $10,152
- outstanding checks ($3,719)
Reconciled bank account $32,882
Cash account reconciliation:
Cash account balance July 31, 202x, $24,756
+ Note collected by bank (net of fees) $8,955
- Bank fees ($14)
- NSF check + bank fees ($805)
- Error in recording check 3056 ($10)
Reconciled cash account $32,882
The lender charges you $9 per week for each $100 you borrow.
Assuming you borrow $300 for 2 weeks, what APR will you be paying?
Answer:
i believe 2,107.5711%
Explanation:
On January 1, 2021, Kendall Inc. began construction of an automated cattle feeder system. The system was finished and ready for use on September 30, 2022. Expenditures on the project were as follows:January 1, 2021 $290,000 September 1, 2021 $408,000 December 31, 2021 $408,000 March 31, 2022 $408,000 September 30, 2022 $290,000 Kendall borrowed $786,000 on a construction loan at 12% interest on January 1, 2021. This loan was outstanding throughout the construction period. The company had $4,680,000 in 9% bonds payable outstanding in 2021 and 2022.Interest capitalized for 2021 was:__________
Answer:
Interest capitalized for 2021 was $51,120.
Explanation:
To calculate this, we use the weighted-average method of calculating capitalized interest which is calculated as the multiplication of interest rate and the sum of the weight of each expenditure based on the number of months within a year. This can be stated mathematically as follows:
Therefore, the interest capitalized for 2021 can be calculated as follows:
Weighted expenditure from January 1, 2021 to December 31, 2021 = $290,000 * (12 months / 12 months) = $290,000.
Weighted expenditure from September 1, 2021 to December 31, 2021 =$408,000 * (4 months / 12 months) = $136,000.
Weighted expenditure from December 31, 2021 to December 31, 2021 = $408,000 * (0 months / 12 months) = $0.
Sum of weighted expenditure for for 2021 = $290,000 + $136,000 + $0 = $426,000
Interest capitalized for 2021 = Sum of weighted expenditure for for 2021 * Interest on construction loan = $426,000 * 12% = $51,120
Therefore, interest capitalized for 2021 was $51,120.
the lower the discount rate to the federal funds rate the more likely a commercial bank will brrow from
Answer: the fed rather than borrowing from another commercial bank.
Explanation:
Based on the question, if there is a scenario whereby the discount rate to the federal funds rate is lower, the logical thing to do is to borrow from the fed rather than borrowing from another commercial bank.
This is because borrowing from fed rather than borrowing from another commercial bank mean that there's less risk attached.
Coronado Industries is planning to sell 900 boxes of ceramic tile, with production estimated at 470 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.25 hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $22 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Coronado has 4700 pounds of clay mix in beginning inventory and wants to have 3900 pounds in ending inventory. What is the total amount to be budgeted in pounds for direct materials to be purchased for the month
Answer:
Total pounds= 19,880
Explanation:
Giving the following information:
Production= 470 boxes
Each box of tile requires 44 pounds of clay mix
Beginning inventory= 4,700 pounds
Desired ending inventory= 3,900 pounds
To calculate the direct material purchase, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Direct material budget (in pounds):
Production= 470*44= 20,680
Desired ending inventory= 3,900
Beginning inventory= (4,700)
Total pounds= 19,880
Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in $ millions) .
2006 2005
Assets
Liabilities and Stockholders' Equity
2006 2005
Current Assets
Current Liabilities
Cash 56.1 58.5
Accounts payable 88.1 73.5
Accounts receivable 54.5 39.6
Notes payable / short-
term debt 10.9 9.6
Inventories 44.8 42.9
Current maturities of long-
term debt 40.7 36.9
Other current assets 5.0 3.0
Other current liabilities 6.0 12.0
Total current assets 160.4 144.0
Total current liabilities 145.7 132.0
Long-Term Assets
Long-Term Liabilities
Land 66.8 62.1
Long-term debt 227 168.9
Buildings 108.5 91.5
Capital lease obligations
Equipment 117.1 99.6
Less accumulated
depreciation (54.4) (52.5)
Deferred taxes 22.8 22.2
Net property, plant, and
equipment 238 200.7
Other long-term liabilities --- ---
Goodwill 60.0 --
Total long-term liabilities 249.8 191.1
Other long-term assets 63.0 42.0
Total liabilities 395.5 323.1
Total long-term assets 361 242.7
Stockholders' Equity 125.9 63.6
Total Assets 521.4 386.7
Total liabilities and
Stockholders' Equity 521.4 386.7
Refer to the balance sheet above. If in 2006 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share, then what is Luther's enterprise value?
A. -$540.0 million.
B. $771.4 million.
C. $385.7 million.
D. $521.4 million.
Answer:
C. $385.7m
Explanation:
Enterprise value = Market value of equity + Market value of all types of debt - Cash in the balance sheet
Market value of equity = Current share price × number of shares outstanding
= $16 × 10.2 million shares
= $163,200,000
Market value of all types of shares = Market value of long term debt + Market value of current portion of long term debt + notes payable / short term debt
We assume that market value of debts = Book value of debts
Therefore,
Market value of debt = $227m + $40.7m + $10.9m
= $278.6 m
Cash in the balance sheet = $56.10 m
Therefore;
Enterprise value = $163.20m + $278.60 - $56.1
=$385.7 m
The Fama-French 3 factor model contains... Group of answer choices market, momentum, and liquidity risk factors none of the answers market, size, and momentum risk factors market, size, and volatility risk factors
Complete Question:
The Fama-French 3 factor model contains
Group of answer choices
A. Market, Momentum and Liquidity Risk Factors
B. None of the answers
C. Market, Size and Momentum risk factors
D. Market, Size and Volatility Risk Factors
Answer:
Hence option is none of these.
Explanation:
The Fama French 3 Model contains following three factors:
Size of FirmsBook-to-Market Values which is Value RiskExcess Return on the Market which is Market RiskIt doesn't include Liquidity risk and Momentum risk factors.
Hence none of the option is correct so we will choose "None of the answers".
A portfolio to the right of the market portfolio on the CML is: Group of answer choices a lending portfolio. an inefficient portfolio. a borrowing portfolio.
Answer:
a borrowing portfolio.
Explanation:
A borrowing portfolio is a portfolio to the right of the market portfolio. It is on the right half of the line. It shows that an investor can purchase the market portfolio and still borrow money so as to purchase more.
CML is known as the the capital market line. It shows the most advantageous portfolios that are a combination of risk and return.
Answer:
a borrowing portfolio.
Explanation:
A borrowing portfolio is a portfolio to the right of the market portfolio. It is on the right half of the line. It shows that an investor can purchase the market portfolio and still borrow money so as to purchase more.
CML is known as the the capital market line. It shows the most advantageous portfolios that are a combination of risk and return.
Explanation:
Dinklage Corp. has 7 million shares of common stock outstanding. The current share price is $68, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $70 million, a coupon rate of 6 percent, and sells for 97 percent of par. The second issue has a face value of $40 million, a coupon rate of 6.5 percent, and sells for 108 percent of par. The first issue matures in 21 years, the second in 6 years. Suppose the most recent dividend was $3.25 and the dividend growth rate is 5 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 21 percent. What is the company’s WACC?
Answer:
WACC = 8.98%
Explanation:
total value of equity = $68 x 7,000,000 = $476,000,000
cost of equity:
$68 = $3.4125 / (rrr - 5%)
rrr - 5% = 5.02%
rrr = 10.02%
total value of debt:
$70 million x 0.97 = $67,900,000
YTM = {60 + [(1,000 - 970)/21]} / [(1,000 + 970)/2] = 61.43 / 985 = 6.24%
$40 million x 1.08 = $43,200,000
YTM = {65 + [(1,000 - 1,080)/6]} / [(1,000 + 1,080)/2] = 51.67 / 1,040 = 4.97%
weighted cost of debt = ($67,900,000 / $111,100,000 x 6.24%) + ($43,200,000 / $111,100,000 x 4.97%) = 3.81% + 1.93% = 5.74%
total value of the firm = $476,000,000 + $67,900,000 + $43,200,000 = $587,100,000
equity weight = $476,000,000 / $587,100,000 = 0.81076
debt weight = 1 - 0.81076 = 0.18924
WACC = (0.81076 x 10.02%) + (0.18924 x 5.74% x 0.79) = 8.12% + 0.86 = 8.98%
In an Oligopoly industry a change in price by one firm will _____ impact the other firms in the industry.
Answer:
The answer is significantly.
Explanation:
Oligopoly is a market situation in which there are few sellers, selling similar goods and services and many buyers. The barriers to entry in this market in high. Example of a oligopoly market is OPEC.
The competition amongst the few sellers is high because they are selling the same thing and a change in price by one firm will significantly affect other firms in the industry. For example, if a firm reduces the price of its goods, this creates a price war and other firms to start reducing their price to match the lower price. And if another firm increases its price, consumers will switch to competitors
In October, Novak Company reports 20,100 actual direct labor hours, and it incurs $198,000 of manufacturing overhead costs. Standard hours allowed for the work done is 22,000 hours. The predetermined overhead rate is $9.10 per direct labor hour. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $7.40 variable per direct labor hour and $42,400 fixed. Compute the overhead controllable variance.
Answer:
The answer is $7,200U
Explanation:
The formula for computing the overhead controllable variance is:
Actual overhead - budgeted overhead
We need to first calculate the budgeted overhead from the question.
Budgeted overhead = (budgeted cost x standard hours) + fixed labor cost
($7.40 x 22,000 hours) + $42,400
= $205,200
Actual overhead incurred is $198,000
Therefore we have:
$198,000 - $205,200
= $7,200U
The U means unfavorable, meaning actual overhead incurred is less than budgeted overhead
Given the following data for Vinyard Corporation:
D=1000
V=4000
E=3000
V=4000
Calculate the proportions of debt (D/V) and equity (E/V) for the firm that you would use for
estimating the weighted average cost of capital (WACC):
A. 40% debt and 60% equity
B. 50% debt and 50% equity
C. 25% debt and 75% equity
D. none of the given values
Answer:
C
Explanation:
D / V = 1000 / 4000
Dividing 1000 by 4000 gives 0.25 = 25%
E / V = 3000 / 4000
Dividing 3000 by 4000 gives 0.75 = 75%
A new firm, POINT BLANK, Co expects to generate Sales of $131,300. POINT BLANK has variable costs of $79,900, and fixed costs of $20,400. The per-year depreciation is $4,700 and the tax rate is 34 percent. Given this info: What is the annual operating cash flow?
Answer:
Variable costs are 55% of sales, depreciation on the equipment to produce the new board will be $2,150,000 per year, and fixed costs are $3,200,000 per year.
Explanation:
Variable costs are 55% of sales, depreciation on the equipment to produce the new board will be $2,150,000 per year, and fixed costs are $3,200,000 per year.
Pearl Corporation issued 1,700 $1,000 bonds at 103. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling separately at 98. The market price of the warrants without the bonds cannot be determined. Use the incremental method to record the issuance of the bonds and warrants.
ex. account title DR
Account title CR
Answer:
Solution as seen below
Explanation:
Bond = 1,700 × $1,000 × 98%
= $1,666,000
Allocation :
Issue price $1,751,000
(1,700 × $1,000 × 103%)
Bonds ( $1,666,000 )
Warrants $85,000
($1,751,000 - $1,666,000)
Bond face value $1,700,000
(1,700 × $1,000)
Allocated FMV ($1,666,000)
Discounts $34,000
($1,700,000 - $1,666,000)
ABC is a full-service technology company. They provide equipment, installation services as well as training. Customers can purchase any product or service separately or as a bundled package. Container Corporation purchased computer equipment, installation and training for a total cost of $144,000 on March 15, 2021. Estimated standalone fair values of the equipment, installation and training are $90,000, $60,000 and $30,000 respectively. The journal entry to record the transaction on March 15, 2021 will include a
Answer:
ABCJournal Entries:Debit Cash or Accounts Receivable (Container Corporation) $144,000
Credit Sales Revenue $72,000
Credit Installation Revenue $48,000
Credit Training Revenue $24,000
To record the sale of goods and services worth $144,000.
Explanation:
a) Data and Calculations:
Performance Obligations and Contract Price:
Computer equipment = $90,000/$180,000 x $144,000 = $72,000
Installation = $60,000 x 0.80 = $48,000
Training = $30,000 x 0.80 = $24,000
Total purchase costs = $144,000
b) The performance obligations and the consideration prices are allocated accordingly based on their separate consideration values.
You have learned at work that today’s successful companies at all levels have one thing in common: they are heavily committed to marketing and strongly ________.
Answer:
This question is incomplete, the options are missing. The options are the following:
a) Obtaining the best CEOs
b) Increasing wealth to stockholders
c) Customer focused
d) Employee motivation
e) Social responsibility
And the correct answer is the option C: Customer focused.
Explanation:
To begin with, nowadays due to the fact of the globalization and the increase in the use of social networks and the huge impact of the use of the internet the companies had to adapt to the new conditions and in that part is where the marketing enters because is used as a huge instrument in the battle in order to obtain more customers. Therfore that the successful companies of today have one thing in common in all their levels inside the organization and is that the marketing is one of the most important weapons that they had and that they have to be strongly focused in their customers.
At the beginning of this year, daily consumption of gasoline in the US amounted to 344 million gallons. It is estimated that for every 10% increase in the price of gasoline, quantity demanded falls by 1.9%. By the end of this year, the price of gasoline is expected to increase by 40 cents from $ 3.05 per gallon. Based on this information, what is the expected quantity demanded (QD) for gasoline at the end of this year
Answer:
335.43 million gallons
Explanation:
price elasticity of demand (PED) = % change in quantity demanded / % change in price
PED = -1.9% / 10% = -0.19, very inelastic
expected price increase $0.40
% change in price = ($3.45 - $3.05) / $3.05 = 13.11%
% change in quantity demanded:
-0.19 = D / 13.11%
D = 2.49%
quantity demanded will decrease by 2.49%, from 344 million gallons to 335.43 million gallons
You're about to buy a new car for $10,000. The dealer offers you a one-year loan where you pay $860.66 every month for the next 12 months. Since you pay $860.66 * 12 = $10,328 in total, the dealer claims that the loan's annual interest rate is (10,328-10,000)/10,000 = 3.28%. What is the actual effective annual rate?
Answer:
The actual effective annual rate is 3.33%.
Explanation:
Effective Annual Rate (EAR) refers to an interest rate has been adjusted for compounding over specified period of time.
Effective annual rate can therefore be described as the interest rate that paid to an investor in a year after compounding has been adjusted for.
Effective annual rate can be computed using the following formula:
EAR = [(1 + (i / n))^n] - 1 .............................(1)
Where;
i = Annual interest rate claimed by the dealer = 3.28%, or 0.0328
n = Number of compounding periods or months = 12
Substituting the values into equation (1), we have:
EAR = [(1 + (0.0328 / 12))^12] - 1 = 0.0332976137123635
EAR = 0.0333, or 3.33% approximately.
Therefore, the actual effective annual rate is 3.33%.
Mathys Inc. has recently hired a new independent auditor, Karen Ogleby, who says she wants "to get everything straightened out." Consequently, she has proposed the following accounting changes in connection with Mathys Inc.'s 2017 financial statements.1. At December 31, 2016, the client had a receivable of $820,000 from Hendricks Inc. on its balance sheet. Hendricks Inc. has gone bankrupt, and no recovery is expected. The client proposes to write off the receivable as a prior period item.2. The client proposes the following changes in depreciation policies.(a) For office furniture and fixtures, it proposes to change from a 10-year useful life to an 8-year life. If this change had been made in prior years, retained earnings at December 31, 2016, would have been $250,000 less. The effect of the change on 2017 income alone is a reduction of $60,000.(b) For its new equipment in the leasing division, the client proposes to adopt the sum-of-the-years'-digits depreciation method. The client had never used SYD before. The first year the client operated a leasing division was 2017. If straight-line depreciation were used, 2017 income would be $110,000 greater.3.In preparing its 2016 statements, one of the client's bookkeepers overstated ending inventory by $235,000 because of a mathematical error. The client proposes to treat this item as a prior period adjustment.4. In the past, the client has spread preproduction costs in its furniture division over 5 years. Because its latest furniture is of the "fad" type, it appears that the largest volume of sales will occur during the first 2 years after introduction. Consequently, the client proposes to amortize preproduction costs on a per-unit basis, which will result in expensing most of such costs during the first 2 years after the furniture's introduction. If the new accounting method had been used prior to 2017, retained earnings at December 31, 2016, would have been $375,000 less.5. For the nursery division, the client proposes to switch from FIFO to LIFO inventories because it believes that LIFO will provide a better matching of current costs with revenues. The effect of making this change on 2017 earnings will be an increase of $320,000. The client says that the effect of the change on December 31, 2016, retained earnings cannot be determined.6. To achieve an appropriate recognition of revenues and expenses in its building construction division, the client proposes to switch from the completed-contract method of accounting to the percentage-of-completion method. Had the percentage-of-completion method been employed in all prior years, retained earnings at December 31, 2016, would have been $1,075,000 greater.Instructions(a) For each of the changes described above, decide whether:(1) The change involves an accounting principle, accounting estimate, or correction of an error.(2) Restatement of opening retained earnings is required.(b) What would be the proper adjustment to the December 31, 2016, retained earnings?
Answer:
Mathys Inc.
a. (1) Change in accounting principle, accounting estimate, or correction of an error:
1. Write-off of Accounts Receivable = Change in accounting estimate
2. Changes in depreciation policies = Changes in accounting estimate for the office furniture and the introduction of the sum-of-years' digit for the new leasing division's equipment.
3. Overstated Ending Inventory = Correction of an error
4. New accounting method for pre-production costs = Change in accounting estimate
5. Change from FIFO to LIFO = Change in accounting principle
6. Change from completed-contract method of accounting to the percentage-of-completion method = Change in accounting principle
a. (2) If Restatement of opening retained earnings is required:
1. No restatement of opening retained earnings is required.
2. No restatement of opening retained earnings is required.
3. Restatement of opening retained earnings is required.
4. No restatement of opening retained earnings is required.
5. Restatement of opening retained earnings is required.
6. Restatement of opening retained earnings is required.
b) December 31, 2016 Retained Earnings Adjustments:
3. Debit Retained Earnings = ($235,000)
5. Debit Retained Earnings = ($320,000)
6. Credit Retained EArnings = $1,075,000
Net effect on 2016 Retained Earnings = an increase of $520,000
Explanation:
a) Data:
1. December 31, 2016 Write-off of Receivable (Hendricks Inc.) = $820,000
2. Changes in depreciation policies:
a) Office Furniture and Fixtures 10-year to 8-year useful life: Effect on Retained Earnings at December 31, 2016 = $250,000 less. Effect on 2017 Income = $60,000 less.
b) Equipment: sum-of-the-years' digits depreciation method: Effect on 2017 income = $110,000 more.
3. Ending inventory for 2016 overstated by $235,000 Prior period adjustment.
4. Preproduction costs for furniture division: New accounting method. Effect on 2016 Retained earnings = $375,000 less.
5. Inventories for Nursery division, from FIFO to LIFO to match current costs with revenues. Effect on 2017, an increase in Earnings = $320,000.
6. Building Construction Division from completed-contract method of accounting to the percentage-of-completion method. Effect on Retained Earnings 2016 = $1,075,000 greater.
b) Mathys Inc. must correct accounting errors by adjusting previously issued financial statements retrospectively. An example of an accounting error is the overstatement of the ending inventory by $235,000. This implies that the 2016 Retained Earnings were overstated.
c) A good example of a change in accounting estimate is the change Mathys Inc. made of the office furniture's useful life from 10 years to 8. Such changes are not applied retroactively to prior years' financial statements.
d) When Marthys Inc. change the inventory valuation method from LIFO to FIFO, it made a change in an accounting principle. Such principle changes are done retroactively, with the restatement of the financial statements.
Consider a firm with a 2007 net income of $20 million, revenue of $60 million and cost of goods sold of $25 million. If the balance sheet amounts show $2 million of inventory and $500,000 of property, plant & equipment, what is the inventory turnover?
Answer:
Inventory turnover days = 29.2 days
Explanation:
Inventory turnover is the average length of time it takes the item of stock to be sold and replaced. It can be measured in days or the number of times.
it can be calculated in days or in number of times
Inventory turnover number of times = cost of goods sold/average inventory
Inventory turnover days = (Average inventory /cost of good sold)× 365 days
It shorter the Inventory turnover in days the better. We will use the days formula.
Note average inventory = (opening inventory + closing inventory)/2
However, the average inventory concept will not be applicable in this question because the opening inventory figure is not given. Hence, we will use the closing inventory figure to represent the average inventory
Inventory turnover days = 2,000,000/25,000,000× 365 days= 29.2
Inventory turnover days = 29.2 days
blank is a crucial factor to small business success A. Location B. Financing C. Advertising D. legal advice
Answer:
Advertisement
Explanation:
Advertising
if american auto companies make a breakthrough in automobile technology and are able to produce a car that gets
Answer: The dollar will appreciate
Explanation:
Here is the complete question:
American auto companies make a breakthrough in automobile technology and are able to produce a car that gets 200 miles to the gallon, what will happen to the U.S. dollar exchange rate?
Appreciation of a currency simply means that the value of a particular currency has risen when compared to another currency. In this situation, the value of the dollar will rise against other currencies.
This.is because the increase in production in the United States will let to an increase in the exchange rate I the future which will lead to a rise in the dollars expected return.
Consumer concern with the standards and believability of advertising may have spread around the world more swiftly than have many marketing techniques due to
Answer:
False advertising
Explanation:
False advertising refers to that advertising in which the misleading information is passed to the final consumers so that the company could earn more and more profits as there is one motive i.e. to increase sales as much the company wants
Therefore according to the given situation, the advertising spread around the world quickly due to the false advertising.
During the year, TRC Corporation has the following inventory transactions.
Date Transaction Number of Units Unit Cost Total Cost
Jan. 1 Beginning inventory 41 $ 33 $ 1,353
Apr. 7 Purchase 121 35 4,235
Jul. 16 Purchase 191 38 7,258
Oct. 6 Purchase 101 39 3,939
454 $16,785
For the entire year, the company sells 410 units of inventory for $51 each.
Exercise 6-4A Part 2
2. Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.
Answer:
Ending Inventory = $1,716.00
Cost of Sales = $15,069.00
Sales Revenue = $20,910.00
Gross Profit = $5,841.00
Explanation:
FIFO Method assumes that the first goods received by the busines will be the first ones to be delivered to the final customer.
Ending Inventory :
Under FIFO, any remaining inventory will be valued as if they were the latest goods purchased.
Ending Inventory : 44 units × $39.00 = $1,716.00
Cost of Goods Sold Calculation :
Cost of Sales : 41 units × $33.00 = $1,353.00
121 units × $35.00 = $4,235.00
191 units × $38.00 = $7,258.00
57 units × $39.00 = $2,223.00
Total = $15,069.00
Sales Revenue Calculation ;
Sales Revenue = Units Sold × Selling Price
= 410 units × $51
= $20,910.00
Gross Profit Calculation :
Sales $20,910.00
Less Cost of Goods Sold ($15,069.00)
Gross Profit $5,841.00
Pisa, Inc. leased equipment from Williamsburg Company under a four-year lease requiring equal annual payments of $68,830, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4-year useful life and no salvage value. Pisa, Inc.'s incremental borrowing rate is 10% and the rate implicit in the lease (which is known by Pisa, Inc.) is 8%. Assuming that this lease is properly classified as a capital lease, what is the approximate amount of principal reduction recorded when the second lease payment is made in Year 2?
Answer:
$54,639
Explanation:
the approximate amount of principal reduction when the second lease payment is made in Year 2 can be calculated by making the Lease amortization table as follows
DATA
Annual payments = 68,830
Implicit rate = 8%
Annuty factor for 4 years at 8% = 3.55710
Present value of lease payment =$246,212 (68830*3.57710 )
Year 1 Year 2
Opening balance - $177,382(w)
interest - $14,191(w)
payments $68,830 $68,830
principal payments $68,830 $54,639
closing balance $177,382(w) $122,743
Working
Closing balance = Present value of lease payment - Annual payment
Closing balance = $256,212 - $68,830
Closing balance = $177,382
Interest = closing balance x implicit rate
Interest = $177,382 x 8%
Interest = $14,190.56
Describe how demographic and social influences might affect a brand such as KFC.
Demographic and social influences affect business and brands in various ways as each demographic or social factors need to be addressed for growing the business or might fail to grow.
Demographic influences or social influences are the characteristics of the population that helps business to understand and identify the product preferences and purchasing behaviors.
There are many different types of demographic or social factors that might influence the business:
incomeagegeographic regioneducationgenderethnicityreligious affiliationmarital statusemploymentAll these factors affect businesses and allow them to adapt according to demographic or social changes.
Learn more about demographics:
https://brainly.com/question/17788813
Almost certainly you have seen vending machines being serviced on your campus and elsewhere. On a predetermined schedule the vending company checks each machine and fills it with various products. This is an example of which category of inventory model?
Answer:
Fixed Time Period Model
Explanation:
a fixed time period model ensures that level of inventory is checked regularly for all items. therefore from the question, if the vending company checks each machine and fills it with various product the inventory method is Fixed Time Period Model.
Sam and Suzy Sizeman need to prepare a cash budget for the last quarter of 2020 to make sure they can cover their expenditures during the period. Sam and Suzy have been preparing budgets for the past several years and have been able to identify the percentage of their income that they pay for most of for their cash outflows. These percentages are based on their take-home pay (e.g., monthly utilities normally run 5.1% of monthly take-home pay).
The information in the following table can be used to create their fourth-quarter budget for 2013.
Income
Monthly take-home pay $4,900
Expenses:
Housing 30%
Utilities 5%
Food 10%
Transportation 7%
Medical/dental 0.5%
Clothing for October and November 3%
Clothing for December $440
Property taxes (November only) 11.5%
Appliances 1%
Personal care 2%
Entertainment for October and November 6%
Entertainment for December $1,500
Savings 7.5%
Other 5%
Excess cash 4.5%
Required:
a. Prepare a quarterly cash budget for Sam and Suzy covering the months October through December 2013.
b. Are there individual months that incur a deficit?
c. What is the cumulative cash surplus or deficit by the end of December 2013?
Answer:
a) Statement showing Cash Budget
Particulars October$ November$ December$ Total
$
Monthly take 4,900.00 4,900.00 4,900.00 14,700.00
home pay
Housing at 30% 1,470.00 1,470.00 1,470.00 4,410.00
Utilities at 5% 245.00 245.00 245.00 735.00
Food at 10% 490.00 490.00 490.00 1,470.00
Transportation 343.00 343.00 343.00 1,029.00
at 7%
Medical at 0.5% 24.50 24.50 24.50 73.50
Clothing at 3% 147.00 147.00 - 294.00
for Oct and Nov
Clothing for Dec - - 440.00 440.00
Property Taxes - 563.50 - 563.50
at 11.5% for Nov
Appliances at 1% 49.00 49.00 49.00 147.00
Personal Care 98.00 98.00 98.00 294.00
at 2%
Entertainment 294.00 294.00 - 588.00
at 6% for Oct and Nov
Entertainment - - 1,500.00 1,500.00
for Dec
Savings at 7.5% 367.50 367.50 367.50 1,102.50
Other 5% 245.00 245.00 245.00 735.00
Excess Cash 220.50 220.50 220.50 661.50
at 4.5%
Remaining Cash 906.50 343.00 -592.50 657.00
b) Yes- In December there is a deficit of $592.50
c) Cumulative surplus is of $657 by end of Dec 2013