Answer:
$184791
Explanation:
The calculation of the value of the firm is given below:
Year Future Cash Flow PVF at 12.2% PV of Cash Flow
1 11000 0.891 9801
2 12500 0.794 9925
3 16000 0.708 11328
Total 31054
Present Value of Terminal Value
= [16000 × (1 + 0.045) ÷ 0.122 - 0.045] × 0.708
= [16720 ÷ 0.077] × 0.708
= 153737
Now
value of Firm = 31054 + 153737
= $184791
Bank A offers to lend you money at 10 percent compounded monthly, Bank B at 11 percent compounded quarterly, and Bank C at 12 percent compounded annually. Calculate the effective rates and state which bank offers the lowest cost of borrowed capital.
Answer and Explanation:
The computation is given below:
For Bank A,
Effective annual rate is
= (1 + 0.10 ÷ 12)^12 - 1
= 10.47%
For Bank B,
Effective annual rate is
= (1 + 0.11 ÷ 4)^4 - 1
= 11.46%
And,
For Bank C,
Effective annual rate = 12%
Therefore, Bank A is best to borrow at lowest effective annual rate
You plan to purchase a $100,000 house using a 30-year mortgage obtained from your local credit union. The mortgage rate offered to you is 7.25 percent. You will make a down payment of 20 percent of the purchase price. Calculate your monthly payments on this mortgage.
Answer:
$545.74
Explanation:
The actual mortgage is the purchase price minus the down payment, based on the mortgage amount, the monthly payment can be determined using a financial calculator as shown below:
N=360(number of monthly payments in 30 years=30*12=360)
I/Y=7.25/12(monthly interest rate without the "%" sign)
PV=-80000($100,000-20%*$100,000=$80000)
FV=0(after all required payments , the balance of the mortgage balance would be zero)
CPT
PMT=$545.74
three (3) State taxes and briefly describe each
On January 1, 2021, Albacore Company had 260,000 shares of its common stock issued and outstanding. Albacore issued a 12% stock dividend on July 1, 2021. On October 1, 2021, Albacore retired 9,000 of its common shares. When calculating basic earnings per share for 2021, what is the appropriate number of shares for Albacore to use in the denominator of the EPS fraction
Answer: 288,950 shares
Explanation:
The number of shares to use is:
= Beginning stock + Stock dividend - Stock retired
Stock dividend:
= 260,000 * 12%
= 31,200 shares
Stock retired:
= 9,000 * 3/12 months because it was retired in October
= 2,250 shares
Number of shares:
=260,000 + 31,200 - 2,250
= 288,950 shares
On February 10, the corporation purchases back 2,000 shares of its own common stock for $50 per share. The entry to record the purchase would include a:____.
a. debit to Cash for $100,000.
b. credit to Treasury Stock for $100,000.
c. debit to Treasury Stock for $100,00.
d. debit to Common Stock for $100,000.
Answer:
c. debit to Treasury Stock for $100,00.
Explanation:
The journal entry to record the purchase is given below:
Treasury stock Dr (2,000 × $50) $100,000
To cash $100,000
(Being the purchase is recorded)
Here treasury stock should be debited as it decreased the stockholder equity and credited the cash as it also decreased the assets
Therefore the option c is correct
Machinery was purchased for $340,000. Freight charges amounted to $14,000 and there was a cost of $40,000 for building a foundation and installing the machinery. It is estimated that the machinery will have a $60,000 salvage value at the end of its 5-year useful life. Annual depreciation expense using the straight-line method will be a. $78,800. b. $57,200. c. $66,800. d. $56,000.
Answer:
$66,800
Explanation:
Depreciation is used in expensing the cost of an asset
Depreciation reduces the value of an asset
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
Cost = $340,000. + $14,000 + $40,000 = $394,000
($394,000 - $60,000) / 5 = $66,800
On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $31,000 in cash and giving a short-term note for $278,000. Legal fees paid were $2,220, delinquent taxes assumed were $15,700, and fees paid to remove an old building from the land were $20,800. Materials salvaged from the demolition of the building were sold for $4,600. A contractor was paid $939,400 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.
Answer:
the cost of the land that should be reported on the balance sheet is $343,120
Explanation:
The calculation of the cost of the land that should be reported on the balance sheet is given below:
= cash payment + Short term note payable + legal fees paid + delinquent taxes + fees paid for removing out the old building - salvage value
= $31,000 + $278,000 + $2,220 + $15,700 + $20,800 - $4,600
= $343,120
hence, the cost of the land that should be reported on the balance sheet is $343,120
One of the most-often sold items at a grocery store is frozen pizzas. The weekly demand for frozen pizzas at a local grocery store is 10,000 pizzas. Whenever a new order is placed for a batch of frozen pizzas, the grocery store incurs a cost of $20. The holding costs are $0.10 per frozen pizza per week. Determine the EOQ for frozen pizzas.
Answer: 2,000 pizzas
Explanation:
Economic Order Quantity (EOQ) allows a business to calculate the optimal amount of units it should order given its ordering and holding costs as well as demand.
EOQ = √((2 * Weekly demand * Ordering costs) / Holding cost)
= √(( 2 * 10,000 * 20) / 0.10
= √ (400,000 / 0.10)
= 2,000 pizzas
Oriole Company sold goods with a total selling price of $809,600 during the year. It purchased goods for $393,200 and had beginning inventory of $68,400. A count of its ending inventory determined that goods on hand was $51,200. What was its cost of goods sold
Answer:
$410,400
Explanation:
Cost of goods sold = Beginning inventory + Purchases - Ending inventory
Cost of goods sold = $68,400 + $393,200 - $51,200
Cost of goods sold = $410,400
So, its amount of cost of goods sold is $410,400.
The following information comes from the accounts of James Company: Account Title Beginning Balance Ending Balance Accounts Receivable $ 34,700 $ 35,700 Allowance for Doubtful Accounts 1,520 2,720 Note Receivable 54,700 54,700 Interest Receivable 1,000 3,556 Required a. There were $182,700 of sales on account during the accounting period. Write-offs of uncollectible accounts were $1,800. What was the amount of cash collected from accounts receivable
Answer: $179,900
Explanation:
The amount of cash collected from accounts receivable will be calculated thus:
Account receivable at begining = $34700
Add: Sales on account = $182700
Less: Write-offs of uncollectible accounts = $1,800
Less: Account receivable at ending balance = $35700
Cash collected = $179,900
Vaughn Manufacturing began the year with retained earnings of $654000. During the year, the company recorded revenues of $610000, expenses of $377000, and paid dividends of $143000. What was Vaughn's retained earnings at the end of the year
Answer:
$744,000
Explanation:
First and foremost, we need to determine the earnings after in the year which is the total earnings that would be used in computing the ending retained earnings
earnings after-tax=revenue-expenses
earnings after-tax= $610000-$377,000
earnings after-tax= $233,000
The closing retained earnings=beginning retained earnings+net income-dividends
The closing retained earnings=$654000+$233,000-$143,000
The closing retained earnings=$744,000
Exercise 19-17 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options [LO19-5, 19-6, 19-7, 19-8] On December 31, 2020, Berclair Inc. had 380 million shares of common stock and 4 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 96 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2021, was $600 million. Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September 13, 2013. The options were exercisable as of September 13, 2020, for 30 million common shares at an exercise price of $56 per share. During 2021, the market price of the common shares averaged $70 per share. Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Do not round intermediate calculations.)
Answer:
Berclair Inc.
Basic earnings per share = $1.87
Diluted earnings per share = $1.70
Explanation:
a) Data and Calculations:
Common Stock Cumulative Preferred Stock
Dec. 31, 2012 Outstanding 380,000,000 4,000,000 shares
Dividend rate 9%
Stock par value $100
Total value of stock $400 million
Annual preferred dividend $36 million ($400 m * 9%)
March 1, 2021 Treasury stock (96,000,000)
July 1, 2021 Stock dividend 14,200,000 (284,000,000 * 5%)
October 1, 2021 Treasury stock 4,000,000
Outstanding shares 302,200,000 4,000,000 shares
Stock options 30,000,000
Total shares and options 332,200,000
Net income for the year = $600,000,000
Preferred stock dividend 36,000,000
Earnings for available for
common stockholders $564,000,000
Basic earnings per share = $1.87 ($564,000,000/302,200,000)
Diluted earnings per share = $1.70 ($564,000,000/332,200,000)
Alpha Industries stock sold for $39 a share at the beginning of the year. During the year, the company paid a dividend of $3 a share and then ended the year with a stock price of $37. The change in the stock price is best described as a:
Answer: c. capital loss.
Explanation:
A capital loss refers to a scenario where the price of a security falls below the price at which it was purchased. This is what happened to the Alpha Industries stock above as the price dropped from $39 to $37 which led to a capital loss of $2.
The dividends paid seem to outweigh the capital loss but we cannot be certain of this unless we know the tax rate being applied to the dividends and because these are usually high, the after tax dividends might have been lower the capital loss of $2.
giả sử mối quan hệ giưa doanh thu và nỗ lực
Answer:
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The Commissioner is empowered to examine the records of any person transacting insurance in the State as an agency, an agent or broker of record. If the Commissioner does examine a person, the expense of that examination will be paid by
Answer:
The person examined.
Explanation:
The California insurance code
This Insurance Code is known as a set of statutes set up by the state legislature and is responsible for the regulation of the business of insurance in California. The Commissioner does not have the authority to change the Insurance Code and only the state legislature has the authority to write or amend the Insurance Code.
The Insurance Commissioner
This office is elected by the people and usually serve up to two 4-year terms. The Commissioner's term runs concurrently with that of the Governor. The Commissioner has the authority to conduct examinations of an agent or insurer's books and records at any time.
The Insurance Commissioner's Duties and Responsibilities
1. File and keep all books and papers as required by law
2. Responsible for the Issue of Certificates of Authority to companies that meet the requirements of state law
3. Issue, refuse, revoke or suspend licenses or Certificates of Authority etc.
Not all the items in your office supply store are evenly distributed as far as demand is concerned, so you decide to forecast demand to help plan your stock. Past data for legal-sized yellow tablets for the month of August are. Week 1 280 Week 2 380 Week 3 580 Week 4 680 a. Using a three-week moving average, what would you forecast week 5 to be
Answer: 547 yellow tablets
Explanation:
The three-week moving average would use the average of the tablets in the last three weeks before the 5th weeks to calculate the average for the 5th week.
= (Week 2 + Week 3 + Week 4) / 3
= (380 + 580 + 680) / 3
= 1,640 / 3
= 546.7
= 547 yellow tablets
When Teresa Carleo, the owner of Plant Fantasies, started her business, staying with the business for the first few years was difficult for her. Though it was inconvenient, she decided to work from home to avoid paying the rent for office space. Teresa's decisions to stay with the business and work from home exemplify _____. a.long-term strategic plans b.options-based planning c.workplace deviance d.production blocking Teresa Carleo made the decision to start her business and work from her apartment to save money by not paying rent. Which of the following kinds of operational plans does Teresa's decision to work from home exemplify
Answer: Long-term strategic plans; Budgeting
Explanation:
Since Teresa decides to St with the business even though it was difficult for her, this exemplifies long term strategic plan.
Long-term strategic plan is a plan that is necessary to achieve the organizational goals which the business can achieve in five or more years ahead.
Since Carleo made the decision to start her business and work from her apartment to save money by not paying rent, this decision to work from home exemplifies budgeting.
Dome Metals has credit sales of $144,000 yearly with credit terms of net 120 days, which is also the average collection period. Assume the firm adopts new credit terms of 5/10, net 120 and all customers pay on the last day of the discount period. Any reduction in accounts receivable will be used to reduce the firm's bank loan which costs 10 percent. The new credit terms will increase sales by 20% because the 5% discount will make the firm's price competitive.
Required:
a. If Dome earns 25 percent on sales before discounts, what will be the net change in income if the new credit terms are adopted?
b. Should the firm offer a discount?
Answer:
a. The net change in income if the new credit terms are adopted is a net gain of $2,880.
b. Since the discount of 5% will result in a net gain which is $2,880, the firm should offer a discount.
Explanation:
a. If Dome earns 25 percent on sales before discounts, what will be the net change in income if the new credit terms are adopted?
Old sales = $144,000
New Sales = Old sales * (100% + Percentage sales increase) = $144,000 * (100% + 20%) = $172,800
Increase in Sales = New Sales - Old sales = $172,800 - $144,000 = $28,800
Increase in Profit from new sales = Profit Margin * Increase in Sales = 25% * $28,800 = $7,200
Average Accounts Receivable without discount = Average Collection Period * Average daily Sales = 120 * ($144,000 / 360) = $48,000
Average Accounts Receivable with discount = Average Collection Period * Average daily Sales = 10 * ($172,800 / 360) = $4,800
Reduction in Accounts Receivable = Average Accounts Receivable without discount - Average Accounts Receivable with discount = $48,000 - $4,800 = $43,200
Loan balance as a result of reduction in accounts receivable. Therefore, we have:
Interest Saving = Interest Rate * Loan Reduction = 10% * $43,200 = $4,320
Cost of Discount = Discount Rate * New Sales = 5% * $172,800 = $8,640
Net Gain (loss) = Increase in Profit form new sales + Interest Saving - Cost of Discount = $7,200 + $4,320 - $8,640 = $2,880
Therefore, the net change in income if the new credit terms are adopted is an net gain of $2,880.
b. Should the firm offer a discount?
Since the discount of 5% will result in a net gain which is $2,880, the firm should offer a discount.
All of the following will improve a firm's liquidity position except: Answer A)increase long-term debt and invest the money in marketable securities B)increase accounts receivable turnover C)increase inventory turnover D)increase the average collection period
Answer:
i think answer B is right
but i am not sure
Harry is a 70-year-old retiree who joined the AARP. To celebrate, he took his daughter to a restaurant and flashed his new AARP card when the check came, earning him a 15 percent discount. What kind of benefit has Harry just used
Answer: c. material
Explanation:
Material benefits refer to the financial benefits that one gets from being part of a group. They usually refer to group members getting discounts on certain things as well as being charged with a different rate than others.
Henry being in the AARP gets the material benefit of being able to get discounts at many different stores and businesses. It is the country's way of trying to ease the burden of being retired after working for so long.
Boston Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Boston Railroad is a measure of railroad operating activity, termed "gross-ton miles," which is the total number of tons multiplied by the miles moved. Transportation Costs Gross-Ton Miles January $1,454,100 323,000 February 1,621,300 361,000 March 1,145,800 234,000 April 1,554,400 350,000 May 1,303,700 281,000 June 1,671,400 380,000 Determine the variable cost per gross-ton mile and the fixed cost. Variable cost (Round to two decimal places.) $fill in the blank 1 per gross-ton mile Total fixed cost $fill in the blank 2
Answer:
Results are below.
Explanation:
Giving the following information:
Transportation Costs Gross-Ton Miles
January $1,454,100 323,000
February 1,621,300 361,000
March 1,145,800 234,000
April 1,554,400 350,000
May 1,303,700 281,000
June 1,671,400 380,000
To calculate the variable and fixed cost under the high-low method, we need to use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (1,671,400 - 1,145,800) / (380,000 - 234,000)
Variable cost per unit= $3.6
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 1,671,400 - (3.6*380,000)
Fixed costs= $303,400
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 1,145,800 - (3.6*234,000)
Fixed costs= $303,400
Depreciation by Units-of-activity Method A diesel-powered tractor with a cost of $259,000 and an estimated residual value of $7,400 is expected to have a useful operating life of 85,000 hours. During April, the tractor was operated 200 hours. Determine the depreciation for the month. If required, carry out any division to two decimal places.
Answer:
the depreciation expense is $592
Explanation:
The computation of the depreciation expense is shown below:
= (cost - residual value) ÷ useful operating life × operated in april month
= ($259,000 - $7,400) ÷ 85,000 hours × 200 hours
= $592
Hence, the depreciation expense is $592
The same should be considered and relevant too
On September 1, 2018, Drill Far Company purchased a tract of land for $2,300,000. The land is estimated to have a salvage value or $50,000, a useful life of four years, and contain an estimated 4,234,000 tons of iron ore. The company also purchased equipment to use in the extraction process that cost $220,450. The company plans to abandon the equipment when the ore is completely mined. During 2018, the company extracted and sold 1.25 million tons of ore. What is the depletion expense recorded for 2018
Answer:
$562,500
Explanation:
Depletion expenses = Land expenses
Depletion expenses = [$2,300,000 - $50,000 / 4]
Depletion expenses = $2,250,000 / 4
Depletion expenses = $562500
So, the depletion expense recorded for 2018 is $562,500
You purchased one corn future contract at $2.29 per bushel. What would be your profit (loss) at maturity if the corn spot price at that time were $2.10 per bushel? Assume the contract size is 5,000 bushels and there are no transactions costs.
Answer: Loss of $950
Explanation:
You bought the contract at $2.29 per bushel.
The corn contract at the time was actually $2.10.
You bought the futures contract for more than the spot price for the same time period so this is a loss.
Loss = Loss per unit * number of units
= (2.29 - 2.10) * 5,000
= 0.19 * 5,000
= $950
Universal Travel, Inc. borrowed $500,000 on November 1, 2021, and signed a twelve-month note bearing interest at 6%. Principal and interest are payable in full at maturity on October 31, 2022. In connection with this note, Universal Travel, Inc. should report interest payable at December 31, 2021, in the amount of: (Do not round your intermediate calculations.)
Answer:
$5,000
Explanation:
Calculation to determine what Travel, Inc. should report as interest payable at December 31, 2021
Interest payable at Dec 31,2021= $500,000 * 6% * 2 months/12 months
Interest payable at Dec 31,2021= $5,000
(November 1 - December 31 = 2 months)
Therefore Travel, Inc. should report interest payable at December 31, 2021, in the amount of:$5,000
multinational company specialised food processing sector ? case study
Answer:
yes its good multitional objects where not eating
Stealth Company's December 31, 2021 and 2020, financial statements are presented below: 2021 2020 Accounts receivable $ 29,500 $ 42,000 Inventory 30,000 39,000 Net sales (all credit) 196,000 197,000 Cost of goods sold 124,000 110,000 Total assets 429,000 409,000 Total stockholders' equity 250,000 227,000 Net income 39,500 33,000 Stealth Company's 2021 receivables turnover ratio is:_______.
Answer:
5.48 times
Explanation:
Calculation to determine what Stealth Company's 2021 receivables turnover ratio is
Using this formula
Receivables turnover ratio= 2021 Net sales/(2021 Accounts receivable+2021 Accounts receivable)/2
Let plug in the formula
Receivables turnover ratio= $196,000($29,500 +$42,000)/2
Receivables turnover ratio= $196,000/($71,500/2)
Receivables turnover ratio= $196,000/$35,750
Receivables turnover ratio= 5.48 times
Therefore Stealth Company's 2021 receivables turnover ratio is 5.48 times
Roddie is 30 years old. He was demoted from his job as a manager at Big Trucks, a company with 10,000 employees. He was replaced by Bambi, a 45-year-old. Roddie was told that he was a little too young for management. Under the Age Discrimination in Employment Act (ADEA), what are Roddie's options
The option available for Roddie would be "Roddie has no options under ADEA."
To understand this, we need to go through the terms of 'Age Discrimination Policy in Employment Act;'
This Act covers the cases of employees or workers aging either 40 or above who have suffered age-based discrimination.The people aging under 40 are not covered under this act and hence, the benefits can not be reaped by them in any situation. This law doesn't allow the process of giving preference to an older employee over the younger to be considered illegal.Hence, Roddie has no available options under ADEA as he is below 40(in fact only 30 years old) and he cannot claim under ADEA for justice.
Learn more about 'Age Discrimination in Employment Act (ADEA)' here: brainly.com/question/7239617
M Corporation has provided the following data concerning an investment project that it is considering:
Initial investment $230,000
Annual cash flow $132,000 per year
Expected life of the project 4 years
The net present value of the project is closest to:____.
a. $250,000.
b. $144,128.
c. $(131,000).
d. $(144,128).
Answer: $170,923.60
Explanation:
Missing information is that the discount rate is 12%.
As the cash inflow is constant, this can be termed an annuity. You just need to find the present value of an annuity for 4 years being discounted at 12%.
Present value of Annuity = Annuity * Present value interest factor of Annuity, 12%, 4 periods
= 132,000 * 3.0373
= $400,923.60
Net Present value = Present value of cash inflow - Initial investment
= 400,923.60 - 230,000
= $170,923.60
Options are for variant of question.
Wildhorse Corporation has fixed costs of $301,500. It has a unit selling price of $9.15, unit variable cost of $7.65, and a target net income of $1,545,000. Compute the required sales in units to achieve its target net income.
Answer:
the required sales in units to attain the target net income is 1,231,000 units
Explanation:
The computation of the required sales in units to attain the target net income is given below:
= (Fixed cost + target net income) ÷ (contribution margin per unit)
= ($301,500 + $1,545,000) ÷ ($9.15 - $7.65)
= 1,231,000 units
Hence, the required sales in units to attain the target net income is 1,231,000 units
