Answer:
$15,850
Explanation:
Particulars Amount
Sales revenues, each year $40,000
Less : Depreciation $10,000
Less : Other operating costs $17,000
EBIT $13,000
Less : Interest expense $4,000
EBT/PBT $9,000
Less: Tax at 35% $3,150 ($9,000*35%)
PAT $5,850
Add: Depreciation $10,000
Cash flow after taxes $15,850
A 4-year project has an annual operating cash flow of $57,000. At the beginning of the project, $4,800 in net working capital was required, which will be recovered at the end of the project. The firm also spent $23,500 on equipment to start the project. This equipment will have a book value of $5,100 at the end of the project, but can be sold for $6,000. The tax rate is 40 percent. What is the Year 4 cash flow
Answer:
$67,440
Explanation:
Year 4 cash flow = operating cash flow + terminal year cash flow
terminal year cash flow = sales price of the machine + net working capital - tax(sales price - book value)
6000 + 4800 - 0.4(6000 - 5100) = $10,400
Year 4 cash flow = $10,400 + $57,000 = $67,400
Which of the following currencies are not involved in affecting the revenue your company receives on shipment of action-cameras and UAV drones to buyers in the four geographic regions where it competes?
Answer: Indian rupees and Russian rubles
Explanation:
The options are:
a. Singapore dollars and euros.
b. Indian rupees and Russian rubies
c. US dollars and Taiwan dollars
d. The Brazilian real and Taiwan dollars
e. US dollars and euros
Explanation:
It should noted that the currencies that affects the revenues received by the company on the shipments of camera to the retailers in the four geographic regions where it markets cameras include the U.S. dollars, euros, Singapore dollars, Taiwan dollars, and Brazilian real.
Therefore, based on the options given, we can see that option B "Indian rupees and Russian rubles" is the correct answer as the currencies arr not involved in affecting the revenue.
Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $58,000 and $2,700, respectively. During Year 2, Allegheny wrote off $4,800 of Uncollectible Accounts. Using the percent of receivables method, Allegheny estimates that the ending Allowance for Doubtful Accounts balance should be $4,400. What amount will Allegheny report as Uncollectible Accounts Expense on its Year 2 income statement
Answer:
The amount of the allowance for the year to be reported in income statement is $6,500.
Explanation:
The amount of the allowance for the year to be reported in income statement can be calculated as follows:
Allowance for the year to be reported in income statement = Ending ending Allowance for Doubtful Accounts balance + Uncollectible written off during the year - Opening Allowance for Doubtful Accounts balance = $4,400 + $4,800 - $2,700 = $6,500
Therefore, the amount of the allowance for the year to be reported in income statement is $6,500.
A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company uses machine-hours as its measure of activity.
Standard Hours per Unit of Output 8.1 machine hours
Standard Variable Overhead Rate $14.30 per machine hour
The following data pertain to operations for the last month:
Actual Hours 1,700 machine hours
Actual Total Variable Overhead Cost $24,905
Actual Output 200 units
What is the variable overhead efficiency variance for the month?
a. $567 favourable.
b. $1,144 unfavourable.
c. $1,172 favourable.
d. $1,172 unfavourable.
Answer:
b. $1,144 unfavourable.
Explanation:
The computation of the variable overhead efficiency variance is shown below:
= (Actual Hours - Standard Hours) × Standard rate per hour
=(1,700 - 8.1 × 200 units) × $14.30
= 80 × $14.30
= $1,144 unfavorable
hence, the variable overhead efficiency variance is $1,144 unfavorable
Therefore the option b is correct
LBC Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.4 hours of direct labor at the rate of $20.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June. The company plans to sell 43,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 550 and 110 units, respectively. Budgeted direct labor costs for June would be:
Answer:
Total direct labor hours= 102,144
Total direct labor costs= $2,042,880
Explanation:
Giving the following formula:
Standard quantity= 2.4 hours
Standard rate= $20 per hour
First, we need to calculate the production required:
Production= sales + desired ending inventory - beginning inventory
Production= 43,000 + 110 - 550
Production= 42,560 units
Now, the direct labor budget:
Total direct labor hours= 42,560*2.4= 102,144
Total direct labor costs= 102,144*20= $2,042,880
Kelso Electric is debating between a leveraged and an unleveraged capital structure. The all equity capital structure would consist of 29,000 shares of stock. The debt and equity option would consist of 17,000 shares of stock plus $220,000 of debt with an interest rate of 6 percent. What is the break-even level of earnings before interest and taxes between these two options? Ignore taxes.
Answer:
See below
Explanation:
Break even EBIT is when earnings per share of the two plans are equal as shown below;
EPS in the first plan = EBIT/Number of shares
There are no interest and taxes
EPS in the second plan = EBIT - (Interest rate × Debt) / Number of shares. No taxes
EBIT/29,000 = EBIT - (6% × $220,000)/17,000
EBIT/29,000 = EBIT - $13,200/17,000
Cross multiply
17,000 (EBIT) = 29,000(EBIT - $13,200)
17,000EBIT = 29,000EBIT - $382,800,000
Collect like terms
$382,800,000 = 29,000EBIT - 17,000EBIT
EBIT = $382,800,000/12,000
EBIT = $31,900
Caughlin Company needs to raise $75 million to start a new project and will raise the money by selling new bonds. The company will generate no internal equity for the foreseeable future. The company has a target capital structure of 75 percent common stock, 5 percent preferred stock, and 20 percent debt. Flotation costs for issuing new common stock are 11 percent, for new preferred stock, 8 percent, and for new debt, 3 percent.
What is the true initial cost figure the company should use when evaluating its project? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567. Do not round intermediate calculations and round your final answer to the nearest whole dollar amount.)
Initial cost $
Answer: $82,644,628
Explanation:
The true initial cost figure that the company should use when evaluating its project will be calculated as:
First we calculate the weighted average flotation which will be:
= (0.75 × 0.11) + (0.05 × 0.08) + (0.20 × 0.03)
= 9.25%
Therefore, the amount raised will be:
= 75 million / (1 - 9.25%)
= 75 million / (1 - 0.0925)
= $82,644,628
Therefore, the true initial cost is $82,644,628.
Differential Analysis for Further Processing
The management of Dominican Sugar Company is considering whether to process further raw sugar into re-fined sugar. Re-fined sugar can be sold for $2.20 per pound, and raw sugar can be sold without further processing for $1.40 per pound. Raw sugar is produced in batches of 42,000 pounds by processing 100,000 pounds of sugar cane, which costs $0.35 per pound of cane. Re-fined sugar will require additional processing costs of $0.50 per pound of raw sugar, and 1.25 pounds of raw sugar will produce 1 pound of re-fined sugar.
1. Prepare a differential analysis as of March 24 to determine whether to sell raw sugar (Alternative 1) or process further into refined sugar (Alternative 2)
2. Briefly report your recommendations.
Answer:
Dominican Sugar Company
1. Differential Analysis as of March 24:
Raw Sugar Refined Sugar
Alternative 1 Alternative 2 Difference
Sales volume 42,000 33,600
Selling price per pound $1.40 $2.20
Sales revenue $58,800 $73,920 $15,120
Materials requirement 100,000 42,000
Output from process 42,000 33,600
Unit cost $0.35
Cost of materials $35,000 $35,000
Cost of further refining $21,000
Total costs $35,000 $56,000 ($21,000)
Net income $23,800 $17,920 ($5,880)
2. Based on cost implications, Dominican Sugar should not refine the raw sugar further. Further refining will cause the company $5,880 in lost income. This means that it costs more to refine the raw sugar.
Explanation:
a) Data and Calculations:
Raw Sugar Refined Sugar
Alternative 1 Alternative 2
Sales volume 42,000 33,600 (42,000/1.25)
Selling price per pound $1.40 $2.20
Sales revenue $58,800 $73,920
Materials requirement 100,000 42,000
Output from process 42,000 33,600 (42,000/1.25)
Unit cost $0.35
Cost of materials $35,000 $35,000
Cost of further refining $21,000 (42,000 * $0.50)
Total costs $35,000 $56,000
Net income $23,800 $17,920
You are given the following information for Huntington Power Co. Assume the company’s tax rate is 40 percent.
Debt:
7,000 6.2 percent coupon bonds outstanding, $1,000 par value, 15 years to maturity, selling for 105 percent of par; the bonds make semiannual payments.
Common stock: 340,000 shares outstanding, selling for $52 per share; the beta is 1.08.
Market: 8 percent market risk premium and 4.2 percent risk-free rate.
What is the company's WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)
WACC %
Answer:
WACC= 5.76%
Explanation:
The weighted average cost of capital (WAAC) is the average cost of all the various sources of long-term finance used by a business weighted according to the proportion which each source of finance bears to the the entire pool of fund.
To calculate the weighted average cost of capital, follow the steps below:
Step 1: Calculate the cost of Debt
The yield to maturity to Maturity can be used to work out the cost of debt using the formula below:
YM =( C + F-P/n) ÷ ( 1/2× (F+P))
C- annual coupon,
F- face value ,
P- current price,
n- number of years to maturity
YM - Yield to maturity
C- 6.2%× 1000 =62 , P- 1.05×1000= 1,050, F- 1000
AYM = 62 + (1000-1050)/15 ÷ 1/2× (1000+1050)
= 58.66 ÷ 1025
Yield to maturity =5.7%
Cost of debt= 5.7%
Step 2: Calculate the cost of Equity
Using the CAPM , the cost of equity can be worked out as follows:
E(r)= Rf +β(Rm-Rf)
E(r) =? , Rf- 4.2%, Rm-8% β- 1.08
E(r) = 4.2% + 1.08×(8-4.2) = 8.3%
Cost of equity= 8.3%
Step 3: Calculate the market value of sources of finance
Market value of equity = 52×340,000= 17,680,000.00
Market value of debt = 7,000×1,000×105 = 735,000,000.00
Step 4: Calculate the WACC
Source cost Market value cost× market value
Equity 8.3% 17,680,000 1,467,440.00
Debt 5.7% 735,000,000 41,895,000.
752,680,000. 43,362,440.
WACC= (43,362,440/ 752,680,000) × 100
= 5.76%
WACC= 5.76%
If a Florida strawberry wholesaler operates in a perfectly competitive market, that wholesaler will have a _____ share of the market, and consumers will consider her strawberries and her competitors' strawberries to be _____. Therefore, _____ advertising will take place in this market. small; standardized; little or no
Answer:
b) small; standardized (commodity); little, if any
Explanation:
THESE ARE THE OPTIONS FOR THE QUESTION
a] large; standardized (commodity); no
b] small; standardized (commodity); little, if any
c] small; differentiated; no
d] large; differentiated; extensive
Pure or perfect competition can be regarded as theoretical market structure whereby some of criterias are met. Such criteria are;
✓ identical product( homogeneous) are been sold by
all firms
✓All the firms involved are price takers(
market price of their product cannot be influenced by them)
✓ There is no influence of Market on prices. Therefore, in a scenerio whereby a Florida strawberry wholesaler operates in a perfectly competitive market, that wholesaler will have a small share of the market, and consumers will consider her strawberries and her competitors' strawberries to be standardized (commodity) Therefore, no advertising will take place in this market.
Choose the term that matches each definition:
a) A decrease in the solubility of an ionic compound as a result of the addition of a common ion.
b) The mass of a salt in grams that will dissolve in 100 mL of water.
c) A solution that has dissolved the maximum amount of a compound at a given temperature. Any further addition of salt will remain undissolved.
d) The product of the molarities of the dissolved ions, raised to a power equal to the ion's coefficient in the balanced chemical equation.
e) The maximum number of moles of a salt that will dissolve in 1 L of solution.
1- Solubility
2- Molar Solubility
3- Solubility product constant
4- Common ion effect
5- Saturated Solution
Answer and Explanation:
a. 4. Common ion effect, this is due to reduction in common ion effect
b. 1. SOlubility as the salt would be dissolved in 100 ml of water
c. 5. Saturated solution as the solution would be dissolved completely
if any extra addition to be made than it would not dissolved
d. 3. Solubility product constant as it used the equation
e. 2- Molar Solubility as the maximum moles would dissolve in 1 liter of solution
Your uncle repays a $300 loan from Tenth National Bank (TNB) by writing a $300 check from his TNB checking account. Assume these funds are the only loans and deposits available for your uncle and the bank. Complete the following T-accounts for your uncle and TNB before your uncle repays the loan. Your Uncle AssetsLiabilities $ $ Tenth National Bank AssetsLiabilities $ $ Complete the following T-accounts for your uncle and TNB after your uncle repays the loan. Your Uncle AssetsLiabilities $ $ Tenth National Bank AssetsLiabilities $ $ True or False: Your uncle's wealth has changed. True False
Answer:
a. We have:
Four your Uncle: Debit the T-accounts under Assets (Checking) for $100; Credit the T-accounts under Liabilities (Loans) with $100.
Four Tenth National Bank: Debit the T-accounts under Assets (Loan) with $100; Credit the T-accounts under Liabilities (Deposits) for $100.
b. We have:
Four your Uncle: Debit the T-accounts under Assets (Checking) for $0; Credit the T-accounts under Liabilities (Loans) with $0.
Four Tenth National Bank: Debit the T-accounts under Assets (Loan) with $100; Credit the T-accounts under Liabilities (Deposits) for $0.
c. False
Explanation:
a. Complete the following T-accounts for your uncle and TNB before your uncle repays the loan.
Note: See part a of the attached excel for the T-accounts for your uncle and TNB before your uncle repays the loan
b. Complete the following T-accounts for your uncle and TNB after your uncle repays the loan.
Note: See part b of the attached excel for the T-accounts for your uncle and TNB after your uncle repays the loan
c. True or False: Your uncle's wealth has changed.
False, his wealth has not changed. The reason is that his assets are now zero and his liabilities or loans are also now zero.
2. Identify four skills that you will need to actively participate in meetings.
Answer:
Particpating, having to ability to drink a lot of coffe, being energetic, concertrating.
Explanation:
Excel does not allow you to copy and paste formulas with AutoFill. true or false
Answer:
True
Explanation:
In excel, after entering a formula in a cell if we drag the cursor through the horizontal cells (row) or the vertical cells (columns), the formula is copied itself with the help of fill handle
Hence, the given statement is true
You own a portfolio that is composed of stocks and bonds. You decided to add a cryptocurrency to the portfolio. Four major cryptocurrencies are available in the market and they are BTC (Bitcoin), ETH (Ether), XRP (Ripple), and LTC (Litecoin). You are going to allocate 10 percent of the portfolio to only one of these cryptocurrencies. Before investing the funds in a cryptocurrency, you estimated the expected return of the overall portfolio and the standard deviation of returns of the portfolio. The Table shows you those numbers (ER means expected return; SD means the standard deviation of returns; RF stands for the risk-free rate of return).
RF = 3%.
Which combination will to select and why?
ER SD
Original Portfolio + BTC 18% 7%
Original Portfolio + ETH 21% 12%
Original Portfolio + XRP 34% 20%
Original Portfolio + LTC 15% 9%
Answer:
Original Portfolio + XRP 34% 20%.
Crane Company deducts insurance expense of $174000 for tax purposes in 2021, but the expense is not yet recognized for accounting purposes. In 2022, 2023, and 2024, no insurance expense will be deducted for tax purposes, but $58000 of insurance expense will be reported for accounting purposes in each of these years. Crane Company has a tax rate of 20% and income taxes payable of $156000 at the end of 2021. There were no deferred taxes at the beginning of 2021. What is the amount of the deferred tax liability at the end of 2021
Answer: $34800
Explanation:
Based on the information given in the question, the amount of the deferred tax liability at the end of 2021 will be:
= Tax rate × Insurance expense
= 20% × $174000
= 0.2 × $174000
= $34800
Therefore, the amount of the deferred tax liability at the end of 2021 is $34800.
Q1. PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Harrison, New York. PepsiCo has interests in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products. In Pakistan, PepsiCo has not offered all their products which are available in other countries. Few products that they are marketing and selling in Pakistan includes Sting, Lays, Slice, Aquafina, Cheetos and much more but not all flavors are offered within these products.
a) PespsiCo is using which kind of an International strategy? Explain your reasons why? And How PespsiCo Strategic management process will work in Pakistan? Explain each process in detail.
b) What cultural factors PespsiCo needs to consider before marketing its different products in Pakistan? What kind of orientation (Ethnocentric, Polycentric, Geocentric) do you think PespsiCo is using to combat the challenge of Cross-Cultural Boundaries?
Clan control is most often used in: small, informal organizations or in organizations with a strong culture. small, formal organizations or in organizations with a weak culture. large, informal organizations or in organizations with a weak culture. large, formal organizations or in organizations with a strong culture.
Answer:
small, informal organizations or in organizations with a strong culture
Explanation:
Clan control is mostly used in small & informal organization or the organization that have strong culture as they work as a family rather work as an organization. In this, the high level management represented as a leader also there are not much principles & strategies as the mostly part would be based on the trust
Therefore the first option is correct
Divisibility" refers to the fact that money is divided into denominations for ease in completing transactions
O a. True
O b. False
Explain the effect of a lack or shortage of entrepreneurs on the Economy
Explanation:
Lack of entrepreneurs will lead to lower jobs, innovative products and a decline in economy. By developing new technology, goods, and services, entrepreneurs help to fuel the economic growth. ... Thus, a shortage in entrepreneurs will not cater to these advantages and the economy will suffer.
Below are descriptions of internal control problems. Identify the one best internal control principle that is related to the problem described.
1. The same person opens incoming mail and posts the accounts receivable subsidiary ledger. select principle of internal control.
2. Three people handle cash sales from the same cash register drawer. select principle of internal control.
3. A clothing store is experiencing a high level of inventory shortages because people try on clothing and walk out of the store without paying for the merchandise.
4. The person who is authorized to sign checks approves purchase orders for payment.
5. Some cash payments are not recorded because checks are not pre-numbered.
6. Cash shortages are not discovered because there are no daily cash counts by supervisors.
7. The treasurer of the company has not taken a vacation for over 20 years.
A. Establishment of responsibility
B. Segregation of duties
C. Physical control devices
D. Documentation procedures
E. Independent internal verification
F. Human resource controls
Answer and Explanation:
The matching is as follows:
1. B Segregation of duties as the duties are separated
2. A Establishment of responsibility as there is a responsibility
3. C. Physical control devices as the given situation represent the physical control devices
4. B. Segregation of duties as the duties are separated
5. D. Documentation procedures as the given situation represent there is some produres carried out for documentation
6. E. Independent internal verification as the given situation represent that there is an internal verification that to be done independently
7. F. Human resource controls as the given situation represent that there is a control of the human resource
two ways in which young entrepreneurs can benefit from Black Industry Scheme
Answer:
Two ways in which young entrepreneurs can benefit from the Black industrialist scheme are as follows: To gain the access to the private banking sector and finance, by equipping with the necessary equity BIP will enhance Black Manufacturing enterprises
Hugh, a self-employed individual, paid the following amounts during the year: Real estate tax on Iowa residence $3,800 State income tax 1,700 Real estate taxes on a vacation home 2,100 Gift tax paid on gift to daughter 1,200 State sales taxes 1,750 State occupational license fee 300 Property tax on value of his automobile (used 100% for business) 475 What is the maximum amount Hugh can claim as taxes in itemizing deductions from AGI
Answer:
$7,650
Explanation:
Calculation to determine the maximum amount Hugh can claim as taxes in itemizing deductions from AGI
Real estate tax on lowa residence $ 3,800
Add Greater of sale tax or state income tax $ 1,750
Add Real estate tax on a vacation home $ 2,100
Itemized deduction allowable $ 7,650
($3,800+$1,750+$2,100)
Therefore the maximum amount Hugh can claim as taxes in itemizing deductions from AGI is $7,650
55. The first step in the market segmentation process is to
a. Define the market
b. Position offer in the market.
c. Segment the market.
d. Target the market.
Answer:
Hello There!!
Explanation:
I think the answer is possibly c. Segment the market.
hope this helps,have a great day!!
~Pinky~
[tex]\huge{\textbf{\textsf{{\color{navy}{An}}{\purple{sw}}{\pink{er}} {\color{pink}{:}}}}}[/tex]
C. Segment the market.
ThanksHope it helps.Two mutually exclusive alternatives are being considered. Both have lives of 10 years. Alternative A has a first cost of $10,000 and annual7-65 benefits of $4500. Alternative B costs $25,000 and has annual benefits of $8800. If the minimum attractive rate of return is 6%, which alternative should be selected
Answer:
Alternative B should be selected since its NPV is higher
Explanation:
year cash flow alternative A cash flow alternative B
0 -10000 -25000
1 4500 8800
2 4500 8800
3 4500 8800
4 4500 8800
5 4500 8800
6 4500 8800
7 4500 8800
8 4500 8800
9 4500 8800
10 4500 8800
discount rate 6% 6%
NPV 23120 39769
how do occupancy rate and potential gross rate relate
Explanation:
Occupancy rate is the ratio of rented or used space to the total amount of available space.
The potential gross rate is the total rental income a property can produce if all units were fully leased and rented at market rents with a zero vacancy rate.
They relate through that they both allow for renting?
what is the role of public administration
The federal funds rate is the interest rate that banks charge each other.
T or f
Answer: F
Explanation: The fed funds rate is the interest rate that depository institutions—banks, savings and loans, and credit unions—charge each other for overnight loans. The discount rate is the interest rate that Federal Reserve Banks charge when they make collateralized loans—usually overnight—to depository institutions.
The Tough Jeans Company produces two different styles of jeans, Working Life and Social Life. The company sales budget estimates that 400,000 of the Working Life jeans and 250,000 of the Social Life jeans will be sold during the year. The company begins with 9,000 pairs of Working Life and 18,000 pairs of Social Life. The company desires ending inventory of 7,500 of Working Life and 10,000 Social Life. Prepare a production budget for the year. Tough Jeans Company Production Budget For the Year Ending December 31
Answer:
Tough Jeans Company
Production Budget For the Year Ending December 31
Working Life Social Life
Budgeted Sales 400,000 250,000
Add Budgeted Closing Inventory 7,500 10,000
Total 407,500 260,000
Less Budgeted Opening Inventory (9,000) (18,000)
Budgeted Production 398,500 242,000
Explanation:
A Production Budget is prepared to determine amount of units required to meet the Sales and Inventory targets during the year.
Bernice Ruel operates Leather Unlimited, a leather shop that sells luggage, handbags, business cases, and other leather goods. During the month of March, the following transactions occurred. The applicable sales tax rate is 6%.
Mar. 2 Sold merchandise on account to Emma Sommers, $250.00, plus sales tax. 9 Sold merchandise on account to Shelly Feinstein, $470.00, plus sales tax. 12 Emma Sommers returned $40.00 worth of merchandise purchased on March 2 for credit. 18 Sold merchandise on account to Maureen Hodge, $110.00, plus sales tax. 19 Sold merchandise on account to Frank MacDonald, $165.00, plus sales tax. 22 Received payment from Emma Sommers on account. 26 Maureen Hodge was given an allowance of $30.00 when she reported damage in the merchandise purchased on March 18. 28 Sold merchandise on account to Emma Sommers, $500.00, plus sales tax. 29 Sold merchandise on account to Shelly Feinstein, $230.00, plus sales tax. 31 Received payment from Maureen Hodge on account. 31 Cash sales for the month were $2,600, plus sales tax.
Required:
Enter the above transactions in the general journal.
Assume and act like you posted the journal entry to the Accounts Receivable accounts. Do not forget the Post Ref. Information
Chart of Accounts: Cash 101, Accounts Receivable 122, Sales Tax Payable 231, Sales 401, Sales Returns & Allowances 401.1
GENERAL JOURNAL
Page 1
Date
Description
Post
Ref.
Debit
Credit
Answer:
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