Answer:
D. Collective intelligence.
Explanation:
Collective intelligence is a concept under sociology, it refers to the process whereby groups of individuals or employees act or work collectively in ways that seem intelligent.
This simply means that, when intellectuals interact and sometimes compete with their colleagues, qualitative information are shared among the team and thus, they solve problems collectively as team members.
Hence, collective intelligence accords the team a greater chance to proffer solutions to problems, than they would have done if they were working independently and individually.
Since, Lisa's job requires her to gather industry information, collaborate with partners, compare competitors, and tap into the knowledge of prospective employees, partners, and customers.
Lisa should use collective intelligence to perform her job.
Dividends Per Share Windborn Company has 25,000 shares of cumulative preferred 3% stock, $50 par and 50,000 shares of $15 par common stock. The following amounts were distributed as dividends:
Y1 $75,000
Y2 15,000
Y3 112,500
Determine the dividends per share for preferred and common stock for each year. The stock outstanding when a corporation has issued only one class of stock.common stock for each year.
Preferred Stock Common Stock
(dividend per share) (dividend per share)
Year 1 $ $
Year 2 $ $
Year 3 $ $
Answer:
Preferred Stock Common Stock
(dividend per share) (dividend per share)
Year 1 $1.50 $0.75
Year 2 $0.60 $0.00
Year 3 $2.40 $1.05
Explanation:
For Year 1:
Total dividend distributed = $75,000
Preferred shareholders' dividend = $50 * 25,000 * 3% = $37,500
Preferred shareholders' dividend per share = $37,500 / 25,000 = $1.50
Common stockholders' dividend = Total dividend distributed - Preferred shareholders' dividend = $75,000 - $37,500 = $37,500
Common stockholders' dividend per share = $37,500 / 50,000 = $0.75
For Year 2:
Total dividend distributed = $15,000
Dividend payable to preferred shareholders = $50 * 25,000 * 3% = $37,500
Dividend paid to preferred shareholders = $15,000
Preferred shareholders' dividend per share = $15,000 / 25,000 = $0.60
Preferred shareholders' dividend carried forward = Dividend payable to preferred shareholders - Total dividend distributed = $37,500 - $15,000 = $22,500
Common stockholders' dividend = $0
Common stockholders' dividend per share = $0
For Year 3:
Total dividend distributed = $112,500
Total dividend paid to preferred shareholders = $37,500 + Preferred shareholders' dividend carried down from Year 2 = $37,500 + $22,500 = $60,000
Preferred shareholders' dividend per share = $60,000 / 25,000 = $2.40
Common stockholders' dividend = Total dividend distributed - Total dividend paid to preferred shareholders = $112,500 - $60,000 = $52,500
Common stockholders' dividend per share = $52,500 / 50,000 = $1.05
Alfred is saving up money for a down payment on a townhouse. He currently has $5016$ 5016, but knows he can get a loan at a lower interest rate if he can put down $5994$ 5994. If he invests the $5016$ 5016 in an account that earns 4.4%4.4% annually, compounded monthly, how long will it take Alfred to accumulate the $5994$ 5994? Round your answer to two decimal places, if necessary.
Answer:
It will take Alfred to accumulate the $5994 annually 4.1367 and monthly 4.0557
Explanation:
In order to calculate how long will it take Alfred to accumulate the $5994 we would have to use the following formula:
A=P(1+r/n)∧n*t
P=$5,016
A=$5994
r=4.4%
n=1 annually
n=12 monthly
Therefore, t annually would be as follows:
5,994=$5,016(1+(4.4%/100)/1)∧1*t
t=4.1367
Therefore, t monthly would be as follows:
5,994=$5,016(1+(4.4%/100)/12)∧12*t
t=4.0557
It will take Alfred to accumulate the $5994 annually 4.1367 and monthly 4.0557
Indigo Company issues 11,300 shares of restricted stock to its CFO, Mary Tokar, on January 1, 2020. The stock has a fair value of $565,000 on this date. The service period related to this restricted stock is 5 years. Vesting occurs if Tokar stays with the company until December 31, 2024. The par value of the stock is $10. At December 31, 2020, the fair value of the stock is $396,000.
Required:
a. Prepare the journal entries to record the restricted stock on January 1, 2014 (the date of grant), and December 31, 2015
b. On July 25, 2018, Tokar leaves the company. Prepare the journal entry to account for this forfeiture.
Answer:
a. Prepare the journal entries to record the restricted stock on January 1, 2014 (the date of grant), and December 31, 2015
January 1, 2014, restricted shares are issued (market price $50 per stock)
Dr Unearned compensation 565,000
Cr Common stock 113,000
Cr Additional paid in capital (stock options) 452,000
December 31, 2015, two years of vesting period have passed
Dr Stock based compensation expense 113,000
Cr Unearned compensation 113,000
b. On July 25, 2018, Tokar leaves the company. Prepare the journal entry to account for this forfeiture.
July 25, stock options are forfeited
Dr Unearned compensation 452,000
Cr Stock based compensation expense 452,000
Explanation:
total stock compensation 11,300
vesting period 5 years = 11,300 / 5 = 2,260 stocks
stock based compensation is recorded using the market price on the date of the grant (January 1, 2014) which = $565,000 / 11,300 = $50 per stock
nothing really happens to the company when the stock options are granted, because unearned compensation is a contra equity account that reduces any increase in equity resulting from the stock options.
January 1, 2014, restricted shares are issued (market price $50 per stock)
Dr Unearned compensation 565,000
Cr Common stock 113,000
Cr Additional paid in capital (stock options) 452,000
The company starts recording expenses as the vesting period is accrued.
December 31, 2014, one year of vesting period has passed
Dr Stock based compensation expense 113,000
Cr Unearned compensation 113,000
December 31, 2015, two years of vesting period have passed
Dr Stock based compensation expense 113,000
Cr Unearned compensation 113,000
December 31, 2016, three years of vesting period have passed
Dr Stock based compensation expense 113,000
Cr Unearned compensation 113,000
December 31, 2017, four years of vesting period have passed
Dr Stock based compensation expense 113,000
Cr Unearned compensation 113,000
Which of the following is false?
a) Mail surveys are cheap but have low response rates.
b) Coverage error is when respondents give untruthful answers.
c) Focus groups are nonrandom but can probe issues more deeply.
d) Surveys posted on popular websites suffer from selection bias.
Answer:
b) Coverage error is when respondents give untruthful answers
Explanation:
Coverage error occurs when the target population isn't the population actually sampled.
Coverage error could be undercoverage or over coverage.
undercoverage is when the sampling population doesn't include all of the target population.
Over coverage is when some of the target population is over represented in the sample population.
I hope my answer helps you
Answer:
b) Coverage error is when respondents give untruthful answers.
Explanation:
Coverage error is a form of bias in experiments, where the selected sample does not match with the population for whom the experiment is actually meant for. This problem could arise as a result of undercoverage or overcoverage of samples.
Undercoverage is a situation wherein the members of the earmarked population are not included in the sample. Overcoverage occurs when samples that are not from the intended population, are included in error or even included more than once.
A municipal bond is issued with a covenant that states "if revenue collections are insufficient, the state legislature has the authority, but not the obligation, to make an annual apportionment of funds necessary to meet debt service requirements." This is a:
Answer:
Moral obligation bond
Explanation:
Moral obligation bond is defined as a revenue bond that is issued by a municipality or by some other government body.
The benefits of moral obligation bonds are tax exemption and a moral pledge that there will be no default on the bond.
Usually a reserve fund is established in case the issuing body is unable to meet its debt obligations.
In this scenario the bond is issued with a covenant that states "if revenue collections are insufficient, the state legislature has the authority, but not the obligation, to make an annual apportionment of funds necessary to meet debt service requirements."
Presented below is information related to equipment owned by Bramble Company at December 31, 2020. Cost $10,260,000 Accumulated depreciation to date 1,140,000 Expected future net cash flows 7,980,000 Fair value 5,472,000 Bramble intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $22,800. As of December 31, 2020, the equipment has a remaining useful life of 5 years.Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020
Answer and Explanation:
The journal entry to record the impairment of the loss is shown below:
Loss on impairment Dr $3,670,800
To Accumulated depreciation - Equipment $3,670,800
(Being the loss on impairment is recorded)
For recording this we debited the loss on impairment as it increased the losses and credited the accumulated depreciation as it increased the balance of accumulated depreciation
Working note:
Cost $10,260,000
Less: Accumulated depreciation -$1,140,000
Carrying Amount $9,120,000
Less Fair value -$5,472,000
Plus: Cost of disposal $22,800
Loss on impairment $3,670,800
Ratio proficiency McDougal Printing, Inc., had sales totaling $ 41 comma 000 comma 000 in fiscal year 2019. Some ratios for the company are listed below. Use this information to determine the dollar values of various income statement and balance sheet accounts as requested. Assume a 365-day year. Calculate values for the following: a. Gross profits b. Cost of goods sold c. Operating profits d. Operating expenses e. Earnings available for common stockholders f. Total assets g. Total common stock equity h. Accounts receivable McDougal Printing, Inc. Year Ended December 31, 2019 Sales $ 41 comma 000 comma 000 Gross profit margin 76% Operating profit margin 39% Net profit margin 7% Return on total assets 13.3% Return on common equity 24% Total asset turnover 1.9 Average collection period 64.3 days
Answer:
a) Gross Profit is $31,160,000
b) Cost of goods sold is $9,840,000
c) Operating profits is $15,990,000
d) Operating Expenses is $15,170,000
e) Earnings available to common stockholders is $2,870,000
f) Total assets is $21,581,947.37
g)Total common stock equity is $11,958,333.33
h) Accounts Receivable is $7,222,739.73
Explanation:
McDougal Printing, Inc.
Year Ended December 31, 2019
Sales = $ 41,000,000
Gross profit margin = 76%
Operating profit margin = 39%
Net profit margin = 7%
Return on total assets = 13.3%
Return on common equity = 24%
Total asset turnover = 1.9
Average collection period = 64.3 days
Calculation of the dollar values of various income statement and balance sheet accounts
a) Gross Profit = Sales × Gross Profit margin
= $41,000,000 × 76%
= $31,160,000
b) Cost of goods sold = Sales - Gross profit
= $41,000,000 - $31,160,000
= $9,840,000
c) Operating profits = Sales × Operating profit margin
= $41,000,000 × 39% = $15,990,000
d) Operating Expenses = Gross profit - Operating profit
= $31,160,000 - $15,990,000
= $15,170,000
e) Earnings available to common stockholders = Sales × Net profit margin
= $41,000,000 × 7%
= $2,870,000
f) Total assets = Sales ÷ Total asset turnover ratio
= $41,000,000 ÷ 1.9
= $21,581,947.37
g)Total common stock equity = Earnings available to common stockholders ÷ Return on common equity %
= $2,870,000 ÷ 24%
= $11,958,333.33
h) Accounts Receivable = (Sales ÷ 365 days) × Average collection period
= ($41,000,000 ÷ 365 days) × 64.3 days
= $7,222,739.73
Calculate the firm’s WACC (using 2018 numbers). (You will need to collect information on the long-term debt and common stock equity from the Balance Sheet. The firm has no preferred stock).
Use the WACC to calculate NPV and evaluate IRR for proposed capital budgeting projects. Assume the projects are mutually exclusive and the firm has the money available to fund the project
A 7.5% percent annual coupon bond with 20 years to maturity, selling for 104 percent of par. The bonds make semiannual payments. What is the before tax cost of debt? If the tax rate is 40%, what is the after-tax cost of debt?
The firm’s beta is 1.2. The risk-free rate is 4.0% and the expected market return is 9%. What is the cost of equity using CAPM?
Answer:
Before tax cost of debt is 7.12%
After tax cost of debt is 4.27%
Cost of equity is 10%
Explanation:
The before-tax cost of debt can be determined using excel rate formula as found below:
=rate(nper,pmt,-pv,fv)
nper is the number of semiannual payments the bond has i.e 20*2=40
pmt is the amount of semiannual payment=$1000*7.5%*6/12=$ 37.50
pv is the current price =$1000*104%=$1,040.00
fv is the face value of $1000
=rate(40,37.50,-1040,1000)=3.56%
The 3.56% is semiannual yield, hence 7.12% per year (3.56%*2)
After-tax cost of debt=7.12%*(1-t) where is the tax rate of 40% or 0.4
after-tax cost of debt=7.12%*(1-0.40)=4.27%
Cost of equity is determined using the below CAPM formula:
Ke=Rf+Beta*(Mr-Rf)
Rf is the risk free rate of 4%
Beta is 1.2
Mr is the market return of 9%
Ke=4%+1.2(9%-4%)=10.00%
Identify what type of unemployment each of the individuals faces. James is an architect who has been laid off owing to a slump in the demand for property. He feels he will have to wait until the economy picks up before he can get a new job. James is facing
Answer:
cyclical unemployment
Explanation:
The situation when the overall demand for goods and services cannot support full employment in an economy, it results in cyclical unemployment. It takes place during periods of slow economic growth.
In the given question,
as James will have to wait until the economy picks up before he can get a new job, he is facing cyclical unemployment.
"In the Modigliani Miller perfect world with no taxes, if we assume that the effect of adding debt to firm's capital structure is exactly balanced by an increase in the cost of equity as more debt is added, what is the effect of increased debt usage on the weighted average cost of capital (WACC)
Answer: WACC remains constant as leverage increases.
Explanation:
Here is the complete question:
In the Modigliani Miller perfect world with no taxes, if we assume that the effect of adding debt to firm's capital structure is exactly balanced by an increase in the cost of equity as more debt is added, what is the effect of increased debt usage on the weighted average cost of capital (WACC)?
a. WACC first increases, then decreases as leverage increases.
b. WACC remains constant as leverage increases.
c. WACC increases continuously as leverage increases.
d. WACC decreases continually as leverage increases.
In the Modigliani Miller perfect world with no taxes, the capital structure is not relevant as the way a company finances it operations does not really matter.
For the capital markets, they will be perfectly competitive and there will be no taxes, bankruptcy costs or transactions cost and investors all have the same expectations. The weighted average cost if capital will be thesame even though leverage increases.
Consider the role of management accounting in relation to the company for which you work (or have worked). Discuss how the principles of management accounting can be utilized. What specific managerial accounting activities would be useful?
Answer:
Role of management accounting :
1. provide internal information on operations
2. help in decision making
Utilization of management accounting principles
1. make or buy decisions
2. continuing or discontinuing of operations
Useful managerial Accounting Activities
1. planning
2. deciding on the alternative causes of action
Explanation:
Role of Management Accounting is to provide managers with information related to their operations.This includes the costs and revenue incurred, the deviations from the planned costs and revenue and profit targets.
This information would help to control costs and revenues or make certain decisions of continuing or discontinuing operating of a product or segment.
Thus managerial accounting activities that are useful are planning, deciding on the alternative causes of action, implementation, monitoring and control
The role of management accounting in a company is to analyze financial information for a period to assist managers in the decision-making process for achieving organizational goals.
The management accounting principles defined by the American Institute of CPAs (AICPA) are:
InfluenceRelevanceValueConfidenceThrough the four global principles, management accounting activities such as strategic definition, control and direction will be managed more effectively.
The availability of data and information will provide greater support for the creation of value through greater vision of organizational environments, transparency and reliability to attract investments.
Learn more here:
https://brainly.com/question/15800664
New Keynesian theorists argue that a. price and wage adjustments in response to policy changes often overcompensate and cause further price disruptions. b. unions and big business have considerable power and often choose not to change wages and prices so as to deliberately offset policy changes enacted by the government. c. the Fed and the Congress rarely do what they say they will do, so one should never listen to what they say. d. new classical rational expectations theories about how expectations are formed are completely wrong. e. prices and wages may not be free to adjust in response to policy changes.\
Answer:
The correct answer is (D)
Explanation:
New classical "rational expectations" theories about how expectations are formed, are completely wrong. That is, prices and wages may not be free to adjust in response to policy changes.
This is the basis of New Keynesian economics, which emerged from the Classical Keynesian economics.
New Keynesian theorists argue that wages and prices are sticky (hardly adjust) in the face of short term fluctuations in the economy. This means or explains that short term federal monetary policies do not have such a great influence on wage level and price level in the macroeconomy.
Flounder Beverage Company reported the following items in the most recent year. Net income $49,400 Dividends paid 6,820 Increase in accounts receivable 10,010 Increase in accounts payable 7,900 Purchase of equipment (capital expenditure) 8,600 Depreciation expense 4,900 Issue of notes payable 20,940 Compute net cash provided by operating activities, the net change in cash during the year.
Answer:
Net Cash flow from Operating activities is $52,100
Explanation:
Cash Flow from operating activities
Particulars Amount Amount
Net Income $49,400
Add: Depreciation expenses $4,900
Add: Increase in accounts payable $7,900
Less: Increase in accounts receivable -($10,100)
$2,700
Net Cash flow from Operating activities $52,100
Among the 1,000 policyholders of the auto insurance company, 400 are classified as low-risk drivers and 600 are classified as high-risk drivers. In each month, the probability of zero accidents for high-risk drivers is 0.80 and the probability of zero accidents for low-risk drivers is 0.90. Calculate the expected bonus payment from the insurer to the 1000 policy
Answer:
50,400
Explanation:
We are required to
Calculate the expected bonus payment from the insurer to the 1000 policyholders in one year:
X = case of 0 accident
E[X] = 400 x P(X | low risk) + 600 x P (X | high risk)
= (400 x 0.9) + (600 x 0.8)
= 840
Expected bonus = 840 x 5 dollars x 12 months
= 50400
You are given the following information concerning a noncallable, sinking fund debenture: Principal: $1,000 Coupon rate of interest: 7 percent Term to maturity: 15 years Sinking fund: 5 percent of outstanding bonds retired annually; the balance at maturity If you buy the bond today at its face amount and interest rates rise to 12 percent after three years have passed, what is your capital gain or loss
Answer:
Explanation:
A) If you buy the bond today at its face amount and interest rates rise to 12% after three years have passed what is your capital gain or loss?
B) If you hold the bond 15 years what do you recive at maturity?
C) What is the bond current yield as of right now?
D) Given your price in a, what is the yield of maturity
E) Is there any reason to believe that the bond will be called after three years have elapsed if interest rates decline
F) what proportion of the total debt issue is retired by the sinking fund
G) What assets secure this bond?
h) If the final payment to retire this bond is $1,000,000 how much must the firm invest to accumulate this sum if the firm is able to earn 7% on the invest funds.
A) If the interest rates rise to 12%, the price of the bond assuming semi-annual interest payments, will be
1000*pvif(6,24) + 35*pvifa(6,24)
= 1000*0.2470 +35*12.5504
= 247 + 439.26 = $686.26
The capital gain would be 1000 - 686.26 = $313.74.
B) Bond face value is $1000 and coupon rate is 7%. Half yearly interest = 1000*7%/2 = $35.
Maturity value of $1000, plus half yearly interest of $35.
C) The bonds current yield = 7%, assuming the price of the bond is $1000 today.
D) The yield to maturity is 12%.
E) No, the bonds are not callable.
F) 5% of the bonds are retired every year. So 14 years * 5 = 70%. Balance 30% is paid full at EOY 15.
5%*14 = 70%.
G) Debentures are not secured by any specific asset.
H) It is not specified as to how the money would be invested; whether its a
lump sum invested on day 0 or equal amounts invested at each year end
If it a lump sum to be invested now, the amount should be 1000000/107^15 = $362,446
If it in equal amounts to be invested each year end the annual investments is given by 1,000,000/fvifa(7,15)
= 1000000/25.1290
= $3979.
Suppose the demand for Digital Video Recorders (DVRs) is given by Q = 250 - .25p + 4pc, where Q is the quantity of DVRs demanded (in 1000s), p is the price of a DVR, and pc is the price of cable television. How much does the quantity demanded for DVRs change if the p rises by $40?
The question is incomplete. Here is the complete question
Suppose the demand for Digital Video Recorders (DVRs) is given by Q = 250 - .25p + 4pc, where Q is the quantity of DVRs demanded (in 1000s), p is the price of a DVR, and pc is the price of cable television. How much does the quantity demanded for DVRs change if the p rises by $40? A) drops by 10,000 DVRs B) increases by 16,000 DVRs C) drops by 2,500 DVRs D) increases by 4,000
Answer:
Drops by 10,000 DVRs
Explanation:
The demand for digital video recorders is expressed by
Q= 250- .25p+4pc
Where
Q represents the quantity demanded by the customers
P represents the price of DVR
pc represents the price of cable television
Since the factor of p in the expression above is negative, this implies that the quantity of DVR demanded in the market will reduce
If the price of DVR increase by $40, then the quantity demanded will reduce by
= 0.25×40×1000
= 10×1000
= 10,000 units
Hence the quantity of DVRs drops by 10,000 DVRs if the price is increased to $40
Composing powerful paragraphs is essential when striving for dear communication. Familiarize yourself with basic paragraph elements, various paragraph patterns, and strategies for building coherence. Use the following paragraphs to answer the questions that follow
Paragraph A: Last week, three of our Xdite executives closed a lucrative merger deal with Editionplus. The merger will add more than 500 accounts to our business and will increase our profits by 39 percent in less than a year. Additionally, the executives met with several Editionplus product designers and agreed on three new computer prototypes that we will produce during the next five years. This means we will expand our business to both Los Angeles and Las Vegas.
Paragraph B: Employee reaction has been mixed about our recent plans to expand to Las Vegas and Los Angeles. Many Xcite employees are concerned that the Los Angeles site will not have the same relaxed corporate environment as the current site. However, this is not the case: The relaxed corporate environment at the San Francisco site will be replicated in Los Angeles. The culture we have developed works for the company and our employees, and we don't plan to change it. Human resources executives are already interviewing San Francisco employees so they can capture and replicate the culture with ease.
Answer: 1. A, C
2. "Everyone in senior-level positions has worked his or her way up the corporate ladder and has contributed greatly to the company's success. This team has increased our profits by 6 percent, expanded office space, hired additional IT support, and strengthened our IT infrastructure. These are just a few of this leadership team's many accomplishments."
Explanation:
1. The Direct Approach is also known as a Deductive Approach. This is because when using the Direct Approach, the writer or speaker begins with the main point of the article and then gives supporting evidence and explanations as they go further along.
Paragraph A uses the Direct approach because the writer began by talking about the main point of the sealing of the deal with Editionplus. It then speaks on how it will increase their profits and how they even met with some of their product designers.
Paragraph C also uses the Direct Approach as it speaks to the effectiveness of the leadership first and then gives evidence of why they are effective by stating that they worked hard for it and that they have increased profits, office space and strengthened infrastructure.
2. Supporting sentences are made with the purpose of supporting the main point. They expound on the point and give it meaning by showing evidence of the original point.
Option C would be the correct answer because it gave evidence of the main point in Paragraph C. The Main Point noted how the leadership in San Francisco has been phenomenal for the past decade. Option C then speaks on how they have done so by stating that they had worked their way up and contributed to the success of the company by having increased profits by 6 percent, expanded office space, hired additional IT support, and strengthened IT infrastructure.
I have attached the full question to this answer.
The computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of the end of June, Business Solutions's job cost sheets show the following total costs accumulated on three furniture jobs.
Job 602 Job 603 Job 604
Direct materials $ 1,500 $ 3,200 $ 3,100
Direct labor 1,000 1,520 2,300
Overhead 400 608 920
Job 602 was started in production in May, and these costs were assigned to it in May: direct materials, $400; direct labor, $250; and overhead, $100. Jobs 603 and 604 were started in June. Overhead cost is applied with a predetermined rate based on direct labor costs. Jobs 602 and 603 are finished in June, and Job 604 is expected to be finished in July. No raw materials are used indirectly in June. (Assume this company’s predetermined overhead rate did not change over these months.)
Required:
1. What is the cost of the raw materials used in June for each of the three jobs and in total?
2. How much total direct labor cost is incurred in June?
3. What predetermined overhead rate is used in June?
4. How much cost is transferred to finished goods inventory in June?
What is the cost of the raw materials used in June for each of the three jobs and in total?
Job 602 Job 603 Job 604 Total
May costs
June costs
Total
What predetermined overhead rate is used in June?
Predetermined overhead rate
How much total direct labor cost is
How much cost is transferred to finished goods inventory in June?
Job Raw Materials Direct Labor Overhead Applied Total Cost Cost transferred to finished goods Costs of Ending WIP
602
603
604
Total
incurred in June?
Job 602 Job 603 Job 604 Total
May costs
June costs
Total
Answer:
1. Cost of the raw materials $8200
2. Total Direct Labor In June $ 2520
3. Predetermined Overhead Rate 40%
4. Cost transferred to finished goods $ 8978
Costs of Ending WIP $ 6320
Explanation:
1. Cost of the raw materials $8200
Job 602 $ 1500
Job 603 $ 3200
Job 604 $3100
Total May Costs $400
Total Job Costs = Jobs, 602+ 603+ 604= $7800
2. Total Direct Labor In June $ 2520
Job 602 $1000
Job 603 $1520
3. Predetermined Overhead Rate= Overhead Cost/ Direct labor Cost
Job602 = 400/1000 *100= 40%
Job 603= 608/1520 *100 = 40%
4. Cost transferred to finished goods
Job 602 603 604
Raw Materials $ 1,500+400 $ 3,200 $ 3,100
Direct labor 1,000 +250 1,520 2,300
Overhead Applied 400+100 608 920
Total Cost 3650 5328 6320
Cost transferred to finished goods = 3650 + 5328= 8978
Costs of Ending WIP $ 6320
Completed jobs are sent to finished goods and incomplete job are in the ending work in process inventory.
For 2018, Winters Manufacturing uses machineminushours as the only overhead costminusallocation base. The direct cost rate is $ 6 per unit. The selling price of the product is $ 21. The estimated manufacturing overhead costs are $ 275 comma 000 and estimated 40 comma 000 machine hours. The actual manufacturing overhead costs are $ 350 comma 000 and actual machine hours are 50 comma 000. What is the profit margin earned if each unit requires two machineminushours?
Answer:
Profit margin per unit= $1.25
Explanation:
Giving the following information:
The direct cost rate is $ 6 per unit.
The selling price of the product is $ 21.
Estimated manufacturing overhead= $275,000
Estimated machine-hours= 40,000
Actual machine hours are 50,000
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 275,000/40,000= $6.875 per machine hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 6.875*2= $13.75
Finally, the profit margin:
Profit margin per unit= 21 - 6 - 13.75= $1.25
Nikki, the design and development manager at Holden Outerwear, says she likes "taking something everyone does every day and doing it slightly different." A workplace that provides the freedom that Nikki promotes has a
Answer:
Democratic leadership style
Explanation:
Based on the information provided it seems that Nikki's workplace has a Democratic leadership style. This refers to a type of leadership style in which the members of the group take a participative role in the decision-making process. The phrase "taking something everyone does every day and doing it slightly different." shows that the company allows it's employees to make their own decisions as long as they get the desired results.
Consider the following cost function. a. Find the average cost and marginal cost functions. b. Determine the average and marginal cost when xequalsa. c. Interpret the values obtained in part (b)
Answer:
a) Average Cost function = 0.1 + (1000/x)
Marginal Cost function = 0.1
b) At x = a = 2000
Average Cost = 0.6
Marginal Cost = 0.1
c) The average cost calculate at x = 2000 in (b) represents the average cost of producing the first 2000 units of product and the marginal cost calculated at x = 2000 in (b) represents the cost of producing the 2001th unit of product.
Explanation:
The complete question
Consider the following cost functions.
a. Find the average cost and marginal cost functions.
b. Determine the average and marginal cost when x=a.
c. Interpret the values obtained in part (b).
C(x)=1000+0.1x, 0≤x≤5000, a=2000
Solution
a) The average cost is given as the total cost divided by the quantity produced.
A(x) = C(x) ÷ x
C(x) = 1000 + 0.1x
A(x) = (1000 + 0.1x) ÷ x = (1000/x) + 0.1
A(x) = 0.1 + (1000/x)
The marginal cost is given as the first derivative of the cost function with respect to the quantity of products produced.
M(x) = (dC/dx)
C(x) = 1000 + 0.1x
M(x) = (d/dx) (1000 + 0.1x) = 0.1
b) To calculate these values at x = a = 2000
Average cost at x = 2000
A(x) = 0.1 + (1000/x) = 0.1 + (1000/2000) = 0.1 + 0.5 = 0.6
Marginal Cost at x = 2000
M(x) = 0.1
c) The average cost is the cost per unit of producing a particular quantity of product.
The marginal cost is the cost of producing an extra unit of product.
Hence, the average cost calculate at x = 2000 in (b) represents the average cost of producing the first 2000 units of product and the marginal cost calculated at x = 2000 in (b) represents the cost of producing the 2001th unit of product.
Hope this Helps!!!
Heidee Corp. and Leaudy Corp. have identical assets, sales, interest rates paid on their debt, tax rates, and EBIT. However, Heidee uses more debt than Leaudy. Which of the following statements is CORRECT?
A) Heidee would have the higher net income as shown on the income statement.
B) Without more information, we cannot tell if Heidee or Leaudy would have a higher or lower net income.
C) Heidee would have the lower equity multiplier for use in the Du Pont equation.
D) Heidee would have to pay more in income taxes.
E) Heidee would have the lower net income as shown on the income statement.
Answer:
E) Heidee would have the lower net income as shown on the income statement.
Explanation:
Heidee and Leaudy have the same Earning Before Interest and Taxes (EBIT).
They both also have the same interest rate paid on debt.
So if Heidee uses more of their debt than Leaudy it means they will incur more interest payment on debt.
This will result in less income for the company.
On the other hand Leaudy uses less debt so their interest expense is low and income is higher.
Heidee would have the lower net income as shown on the income statement.
A supermarket uses a periodic review system to manage inventory of gallons of drinking water. Average demand is 152 gallons of water per day with standard deviation of 33 gallons per day. It costs $57 to order water from the supplier, and orders are delivered after 4 days. The holding cost for a gallon of water is $0.11 per year. The supermarket is open 360 days per year. If the supermarket aims for a 94.5% service level for gallons of drinking water (z = 1.6), what value should be used for T, the target inventory position at the time of ordering?
The target inventory position is T= ______ gallons.
Answer:
The target inventory position is T= 713.6 gallons.
Explanation:
Given:
Average demand =per day = D = 152 Gallons
Standard deviation of demand = σ = 33 Gallons per day
Lead time for delivery = L = 4 days
Z value for 94.5% service level = 1.6
The target inventory position = (Average demand x Lead time) + Safety stock
= (D × L) + (Z× σ × [tex]\sqrt{L}[/tex])
= (152 × 4) + (1.6 × 33 × [tex]\sqrt{4}[/tex])
= (152 × 4) + (1.6 × 33 × 2)
= 608 + 105.6
= 713.6
The value of the target inventory position will be 713.6 gallons.
The following can be illustrated from the information given:
Average demand per day, D = 152Standard deviation of demand, σ = 33Lead time for delivery, L = 4Z value for 94.5% service level = 1.6Therefore, the target inventory position will be:
= (Average demand x Lead time) + Safety stock
= (D × L) + (Z× σ × ✓L )
= (152 × 4) + (1.6 × 33 × ✓4 )
= (152 × 4) + (1.6 × 33 × 2)
= 608 + 105.6
= 713.6
Therefore, the target inventory position will be 713.6 gallons.
Read related link on:
https://brainly.com/question/24674971
On January 1, Guillen Corporation had 91,500 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following occurred. Apr. 1 Issued 20,000 additional shares of common stock for $16 per share. June 15 Declared a cash dividend of $1 per share to stockholders of record on June 30. July 10 Paid the $1 cash dividend. Dec. 1 Issued 1,000 additional shares of common stock for $20 per share. 15 Declared a cash dividend on outstanding shares of $4.10 per share to stockholders of record on December 31.
Prepare the entries to record these transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
Apr. 1 Issued 20,000 additional shares of common stock for $16 per share.
Dr Cash 320,000 (= 20,000 x $16)
Cr Common stock 320,000
June 15 Declared a cash dividend of $1 per share to stockholders of record on June 30.
Dr Retained earnings 42,875 (= 42,875 x $1)
Cr Dividends payable 42,875
July 10 Paid the $1 cash dividend.
Dr Dividends payable 42,875
Cr Cash 42,875
Dec. 1 Issued 1,000 additional shares of common stock for $20 per share.
Dr Cash 20,000 (= 1,000 x $20)
Cr Common stock 20,000
Dec. 15 Declared a cash dividend on outstanding shares of $4.10 per share to stockholders of record on December 31.
Dr Retained earnings 179,887.50 (= 43,875 stocks x $4.10)
Cr Dividends payable 179,887.50
Trade-Off Theory. Smoke and Mirrors currently has EBIT of $25,000 and is all-equity- financed. EBIT is expected to stay at this level indefinitely. The firm pays corporate taxes equal to 35% of taxable income. The discount rate for the firm’s projects is 10%.(LO3)
a. What is the market value of the firm?
b. Now assume the firm issues $50,000 of debt paying interest of 6% per year, using the proceeds to retire equity. The debt is expected to be permanent. What will happen to the total value of the firm (debt plus equity)?
c. Recompute your answer to (b) under the following assumptions: The debt issue raises the probability of bankruptcy. The firm has a 30% chance of going bankrupt after 3 years. If it does go bankrupt, it will incur bankruptcy costs of $200,000. The discount rate is 10%. Should the firm issue the debt?
Answer:
a. What is the market value of the firm?
$162,500b. Now assume the firm issues $50,000 of debt paying interest of 6% per year, using the proceeds to retire equity. The debt is expected to be permanent. What will happen to the total value of the firm (debt plus equity)?
$200,123c. Recompute your answer to (b) under the following assumptions: The debt issue raises the probability of bankruptcy. The firm has a 30% chance of going bankrupt after 3 years. If it does go bankrupt, it will incur bankruptcy costs of $200,000. The discount rate is 10%. Should the firm issue the debt?
The firm should not issue the debt because the risk of bankruptcy eliminates any possible gains obtained from issuing debt. It actually decreases the value of equity.Explanation:
the firm's current value = [EBIT x (1 - tax rate)] / WACC = [$25,000 x 0.65] / 10% = $162,500
firm's new WACC = ($112,500/$162,500 x 10%) + ($50,000/$162,500 x 6% x 0.65) = 6.92% + 1.2% = 8.12%
the firm's new value = [$25,000 x 0.65] / 8.12% = $200,123
expected cost of bankruptcy = (30% x $200,000) / 1.1³ = $45,079
firm's total value is still $200,123, but the stockholders' equity has been reduced from ($200,123 - $50,000 = $150,123) to $150,123 - $45,079 = $105,044
the gain from issuing debt will be eliminated due to the risk of bankruptcy, before equity had risen from $112,500 to $150,123, but now it decreases to $105,044.
The market value of the firm will be $162500.
Based on the information given, the market value will be calculated thus:
= [EBIT × (1 - Tax rate(] / WACC
= [25000 × (1 - 0.35)] / 10%
= [25000 × 0.65] / 0.10 = $162500
Since the firm's new WACC is 8.12%, then the new value of the firm will be:
= (25000 × 0.65) / 8.12%
= 200,123
Therefore, the total value of the firm is $200,123.
In conclusion, the firm should not issue the debt due to the fact that the risk of bankruptcy will eliminate the gains gotten from the issuance.
Read related link on:
https://brainly.com/question/16699846
What is the company’s financial position? Please refer to the income statement and balance sheet for the Exceptional Service Grading Company available here. Using the learning resources provided in the Reading Assignment, perform a financial ratio analysis of the company using the following ratios: • Gross profit margin • Current ratio • Debt ratio
Answer:
Gross profit margin requires revenue and gross profit of the company.
Current ratio = 1.386 x
Debt ratio = 0.123 x
Explanation:
Gross profit margin requires revenue and gross profit of the company which is provided in the question but it can be calculated using this formula ; Total revenue / gross profit . where Gross profit = Revenue - cost of goods sold
Current ratio is calculated using the formula ; current assets/ current liabilities lets assume the left column is for the most recent year then current ratio = 4612200/3325950 = 1.386x
Debt ratio is calculated using the formula ; total debts/total assets lets assume once more that the left column is the most recent year. note; total debts = long term + current notes payable = 454800 + 277550
therefore debt ratio = 732350 / 5957800 = 0.123x
attached is the income statement and balance sheet
Investment Management Inc. (IMI) uses the capital market line to make asset allocation recommendations. IMI derives the
following forecasts:
• Expected return on the market portfolio: 12%.
• Standard deviation on the market portfolio: 20%.
• Risk-free rate: 5%.
Samuel Johnson seeks 'Ml's advice for a portfolio asset allocation. Johnson informs IMI that he wants the standard deviation of the portfolio to equal half of the standard deviation for the market portfolio. Using the capital market line, what expected return can IMI provide subject to Johnson's risk constraint?
Answer:
The expected return that IMI can provide subject to Johnson's risk constraint is 8.5%
Explanation:
Capital Market Line (CML)
Expected return on the market portfolio, E([tex]r_m[/tex]) = 12 %
Standard deviation on the market portfolio, σ[tex]_p[/tex] = 20%
Risk-free rate, [tex]r_f[/tex] = 5%
E([tex]r_c[/tex]) = [tex]r_f[/tex] + [ E([tex]r_p[/tex]) - [tex]r_f[/tex] ] × ( σ[tex]_c[/tex] ÷ σ[tex]_p[/tex])
= 0.05 + [ 0.12 - 0.05] × (0.10 ÷ 0.20)
= 8.5%
Variable costs as a percentage of sales for Lemon Inc. are 62%, current sales are $563,000, and fixed costs are $189,000. How much will operating income change if sales increase by $39,200
Answer:
Effect on income= $14,896 increase
Explanation:
Giving the following information:
Variable costs= 62% of sales
Current sales are $563,000
Fixed costs are $189,000.
Sales increase by $39,200.
To calculate the effect on income, we need to use the following formula:
Effect on income= sales increase*contribution margin ratio
Effect on income= 39,200*(1 - 0.62)
Effect on income= $14,896 increase
Prove:
Actual income= 563,200*0.38 - 189,000= 25,016
New income= 602,400*0.38 - 189,000= 39,912
Difference= $14,896 increase
Weisman, Inc. uses activity-based costing as the basis for information to set prices for its six lines of seasonal coats.
Activity Cost Pools Estimated Overhead Estimated Use of Cost Drivers per
Activity
Designing $455,000 14,000 designer hours
Sizing and cutting 3,948,000 168,000 machine hours
Stitching and trimming 1,479,725 78,500 labor hours
Wrapping and packing 333,000 30,000 finished units
Compute the activity-based overhead rates using the following budgeted data for each of the activity cost pools.
Activity-based overhead rates
Designing $ per designer hour
Sizing and cutting $ per machine hour
Stitching and trimming $ per labor hour
Wrapping and packing $ per finished unit
Answer:
Designing = $32.50 per designer hour
Sizing and cutting = $23.50 per machine hour
Stitching and trimming = $18.85 per labor hour
Wrapping and packing = $11.10 per finished unit
Explanation:
The Activity Based Overhead Costing involves calculation of cost driver rate for each activity center.
Cost Driver Rate = Cost of Activity / Number of Times that Activity is Performed
Designing = $455,000 / 14,000
= $32.50
Sizing and cutting = $3,948,000 / 168,000
= $23.50
Stitching and trimming = $1,479,725 / 78,500
= $18.85
Wrapping and packing = $333,000 / 30,000
= $11.10
You consider buying a share of stock at a price of $21. The stock is expected to pay a dividend of $2.04 next year, and your advisory service tells you that you can expect to sell the stock in 1 year for $24. The stock's beta is 1.2, rf is 8%, and E[rm] = 16%. What is the stock's abnormal return?A. 1%
B. 2%
C. -1%
D. -2%
E. None of the above
Answer:
E. None of the above
Explanation:
First we need to calculate the holding period return
Holding period return is the rate of return which an assets earns during the period in which it holds the assets.
Holding Period Return = (Selling Price - Initial Price + Dividend ) / Initial Price
Holding Period Return = ($24 - $21 + $2.04 ) / $21 = 0.24 = 24%
Now we need to calculate the expected return on the stock using CAPM formula as follow
Expected return = Risk free rate + Beta ( Market Risk Premium )
Expected return = rf + beta ( E(rm) )
Placing values in the formula
Expected return = 8% + 1.2 ( 16% )
Expected return = 27.2%
Abnormal return is the difference of Holding period return and expected return
Abnormal return = 27.2% - 24% = 3.2%
