g Mason Company paid its annual property taxes of $240,000 on February 15, 20X9. Mason also anticipates that its annual repairs expense for 20X9 will be $1,200,000. This amount is usually incurred and paid in July and August when operations are shut down so that machinery and equipment can be repaired. What amount should Mason deduct for property taxes and repairs in each quarter for 20X9?

Answer:

d. $36

Explanation:

The Contribution margin is the net of selling price and variable cost of a product. It is calculated by deducting the variable cost from the selling price of a product.

                                          Cake   Pie    Cookies

Current selling price          $30    $18    $5

Variable cost                      $12     $7      $1

Contribution margin           $18     $11     $3

Production hours                2        1.5     0.25

Contribution margin/hr.     $9     $7.33  $12

Required Contribution margin per hour of cake = $12

Required Contribution margin = $12 x 2 = $24

Required Selling Price = Contribution margin + variable cost = $24 + $12 = $36

Note there is a mistake in the calculation of Contribution margin of Cookies as it is given $3 but after deducting the variable cost from selling price is should be $4 ( $5 - $1 ), I used the given contribution margin for the calculation.

Answer: a. It allowed workers to specialize on specific tasks and become more productive.

Explanation:

The Assembly line method of production that Henry Ford initiated at his plant was a technological game changer as it enabled workers to assemble cars faster and this mass produce Ford cars at a cheaper rate for the masses.

The Assembly line worked by putting workers at various stages of the assembly line where they would focus on installing only one or a few parts into the prospective vehicle. This way they were able to focus on that specific task, become more adept at it and thus become more productive.

Answer:

Adding $47 to the book balance.

Explanation:

The above is an example of transposition error, which is caused by substituting two or more sequential digits ; mistake would be corrected by adding $47 ($95 -$48) to the book balance.

Answer: Please find answers below

Explanation:

(a) Economic order quantity EOQ = [tex]\sqrt{2 X Annual Demand X Ordering Cost) / Carrying Cost)}[/tex]

= [tex]\sqrt{2 X 5,900 X 29 / 9 }[/tex]     = [tex]\sqrt{38,022.222}[/tex]

= 194.99 units  

(b) Average number of units = Economic order quantity / 2

= 194.99 / 2  

= 97.496 units    

(c) Optimal number of orders = Annual Demand / Economic order quantity

= 5,900units / 194.99 units  =30.26  

(d) Optimal number of days between two orders = Number of working days / Optimal number of orders

= 250 days / 30.26  

= 8.26  

Total ordering cost = Cost per order X Number of orders

= $29 X 30.26  

= $ 877.54

Total holding cost = Average inventory X carrying cost per unit

= 194.99 /2  X $9  

= $877.455

(e) Annual cost of ordering and holding inventorY =Total ordering cost + Total carrying cost

= $ 877.54  + $877.455

= $ 1,754.995  ≈ $1,755  

(f) Total annual inventory cost =Total ordering cost +Total holding cost + Actual cost of 5900 units at $102 per unit    

= $ 877.54  + $877.455  + (5,900 x 102) = $1754.995 +601,800= $603,554.995≈$603,555

Total annual inventory cost =Total ordering cost +Total holding cost + Actual cost of 6000 units at $102 per unit    

= $ 877.54  + $877.455  + (6000 x 102) = $1754.995 +612,000= $613,754.995≈$613,755

Answer:

Under current tax law, no option is correct. Before 2018, option C would have been right.

Explanation:

Currently under the Tax Cuts and Jobs Act (from Jan. 2018 until Dec. 2025) you can only deduct interests on mortgages used to purchase, build or improve your home. In this case, Jorge will only be able to deduct the interests paid on the $130,000 he owed for the first mortgage.

Interests on home equity loans will again be deductible (up to $100,000) starting Jan. 2026.

Answer:

Cost of equity =  10.5%

Explanation:

The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta.

Under CAPM, Ke= Rf + β(Rm-Rf)  

Rf-risk-free rate (long-term i.e 10 year treasury bill rate), β= Beta, Rm= Return on market., Ke- Return on equity (cost of equity)

This model can be used to work out the cost of equity as follows:

Ke= Rf + β (Rm-Rf)

Rf- 6%, β= 1.0, Rm- 10.5, E(r)- ?

Ke = 6% + 1.0× (10.5 -6)% = 10.5%

Ke  = 10.5%

Cost of equity =  10.5%

Answer: can be explained by reactivity instead of the treatment conditions

Explanation:

Internal validity is the degree of confidence that a researcher has when he or she believes that the causal relationship that is not being influenced by other variables and therefore trustworthy.

Demand characteristics can threaten internal validity because the results can be explained by reactivity instead of the treatment conditions.

Answer:

PV= $798,757.88

Explanation:

Giving the following information:

Cf= $60,000

i= 0.09/4= 0.0225

n= 4*4= 16

First, we need to calculate the future value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual cash flow

FV= {60,000*[(1.0225^16) - 1]} / 0.0225

FV= $1,140,323.89

Now, the present value:

PV= FV/(1+i)^n

PV= 1,140,323.89/(1.0225^16)

PV= $798,757.88

Answer:

The loan is $31,694.73

Explanation:

The complete question is as follows;

Liam had an extension built onto his home. He financed it for 48 months with a loan at 5.75.7​% APR. His monthly payments were $740. How much was the loan amount for this​ extension?

solution

We proceed as follows;

From the question, we have the following terms:

Rate = 5.7%

The monthly rate is thus;

Monthly rate = 5.7% / 12 = 0.475%

Mathematically;

Loan = Annuity * [1 - 1 / (1 + r)^n] / r

Loan = 740 * [1 - 1 / (1 + 0.00475)^48] / 0.00475

Loan = 740 * [1 - 0.796554] / 0.00475

Loan = 740 * 42.830712

Loan = $31,694.73

Answer: $4000

Explanation:

A margin account is typically offered by a brokerage firms so that investors can borrow money in order to purchase securities.

A customer sells short 1,000 shares of ABC stock at $4 in a margin account. The customer must deposit:

= $4 × 1000

= $4000

Answer:

1)

the %s were missing so I looked for a similar question:

we must use the present value formula:

present value = future value / (1 + interest rate)ⁿ

5% ⇒ $5,000 / 1.05¹⁰ = $3,069.57

7% ⇒ $5,000 / 1.07⁷ = $3,113.75

9% ⇒ $5,000 / 1.09⁴ = $3,542.13

2)

we can use the future value of an annuity formula:

future value = annual payment x annuity factor

FV = $5,000 x 7.7156 (FV annuity factor, 10%, 6 years) = $38,578

3)

PV = $3,000/1.04 + $3,000/1.04² = $2,884.62 + $2,773.67 = $5,658.29

4)

present value of an annuity = $500 x 4.3553 (PV annuity factor, 10%, 6 periods) = $2,177.65

present value of an annuity = $500 x 6.1446 (PV annuity factor, 10%, 10 periods) = $3,072.30

5)

annual payment = present value / annuity factor = $500,000 / 3.6048 (PV annuity factor, 12%, 5 years) = $138,703.95

6)

annual payment = present value / annuity factor = $15,000 / 3.1699 (PV annuity factor, 10%, 4 years) = $4,732.01

7)

the value of the loan = PV of the principal + PV of the interest payments

PV of the principal = $1,000 / 1.085⁸ = $520.67

PV of interest payments = $85 x 5.63918 (PV annuity factor, 8.5%, 8 periods) = $479.33

market value of the debt = $1,000

8)

the value of the loan = PV of the principal + PV of the interest payments

PV of the principal = $1,000 / 1.085¹⁰ = $442.29

PV of interest payments = $85 x 5.3349 (PV annuity factor, 10%, 8 periods) = $453.47

market value of the debt = $895.76

9)

the value of the loan = PV of the principal + PV of the interest payments

PV of the principal = $1,000 / 1.08⁸ = $540.27

PV of interest payments = $85 x 5.7466 (PV annuity factor, 8.5%, 8 periods) = $488.46

market value of the debt = $1,028.73

Answer:

B. price subject

Explanation:

For this contract to be enforceable, it must include price, matter and delivery date. These aspects are all best essential and should be included in the contract. From the question when Jaime wrote the contract he failed to detail the price they agreed upon. Even though the rest were included. Therefore this contract cannot be enforced since it is missing this important aspect. Option b is the answer to the question

Answer: Please see answer in explanation column

Explanation:

1. Being issued in excess of par value

Account titles & Explanations              Debit             Credit  

Cash                                           $108,000    

Common stock(9,000 x 10)                                      $90,000  

paid in capital in excess of par value

Common Stock(108,000 - 90,000)                          $18,000

2.Being issued to promoters at stated value

Account titles & Explanations     Debit           Credit  

Organisational expense           $49,500  

common stock (4500 x 1 )                                          $4,500  

paid in capital in excess of stated value

Common stock   (49,500 -4,500)                                   $45,000  

3 Being issued to promoters at no stated value

Account titles & Explanations              Debit                Credit  

        organisational expense          $49,500

Common stock of no par value                                 $49,500  

4 Being issued  of preferred shared in excess of par value

Account titles & Explanations           Debit                 Credit  

               Cash           $105,750  

Preferred Stock(2,250 X $25)                                   $56,250  

paid in capital in excess of par value

of preferred stock (  $105,750-  $56,250)                $49,500                  

Answer:

Net operating income= $242,506.6

Explanation:

Giving the following information:

Earnings before interest and taxes= $237,884

Depreciation expense= $87,882.

Tax rate= 35%

To calculate the net operating profit, we need to use the following structure:

EBIT= 237,884

Tax= (237,884*0.35)= (83,259.4)

Depreciation= 87,882

Net operating income= 242,506.6

Answer:

Debit to unrealized loss for for $12,000

Explanation:

Based on the information given about ABC Company we were told that the company made a purchased of IBM stock for the amount of $20,000 in which the market value of the stock was the amount of $8,000 this means that the journal entry on December 31 will include a:

Debit to unrealized loss for for $12,000

Calculated as :

Unrealized loss=Market value - IBM stock

Unrealized loss=$8,000-$20,000

Unrealized loss=-$12,000

Answer:

Stakeholders.

Explanation:

Stakeholders are the group of people who may be interested in the processes of a particular company. They are formed by the group of employees, suppliers and customers, who are the stakeholders in the organization.

Therefore, it is necessary that strategic actions and business processes are aimed at satisfying the interests and needs of stakeholders, who are the company's public, that is, the reason for the existence of a company.

It is important for the company to identify who its stakeholders are and how they directly impact the business, so that it can shape a strategy that is aligned with its interests and what they expect from the company.

Satisfying stakeholders and adopting corporate governance, contributes to the company having a strong market position and achieving several competitive and strategic advantages in the market, increasing its results and profitability.

Answer:

A. Competitive and open markets.

C. A dependable legal system.

D. Political stability.

Explanation:

A Competitive and open Market ensures that people have enough incentives to invest in the development of factors of production because it rewards that investment with a healthy return. In a Competitive market, unfair competition will not be present therefore people will get equal opportunities to make returns.

A dependable Legal System and Political Stability go hand in hand to ensure that investors will have enough faith in the system to want to invest in Factors of Production. If a country is stable politically and abides by the rule of law, an investor will be assured that when they invest, these investments will be protected by the powers that be and their returns will not be impacted by political upheavals and breaches of contract that cannot be rectified.

Answer:

a. What is the company’s total book value of debt?

total book value of debt = $60,000,000 + $35,000,000 = $95,000,000

b. What is the company’s total market value of debt?

total market value of debt = ($60,000,000 x 1.07) + ($35,000,000 x 0.76) = $64,200,000 + $26,600,000 = $90,800,000

c. What is your best estimate of the after tax cost of debt?

weight of debt (using market value):

$64,200,000 / $90,800,000 = 70.7%

$26,600,000 / $90,800,000 = 29.3%

YTM bond I = {1,200,000 + [(60,000,000 - 64,200,000)/56]} / [(60,000,000 + 64,200,000)/2] = 1,125,000 / 62,100,000 = 1.8115 x 2 = 3.62%

YTM bond II = (35 / 26.6)¹/¹⁰ - 1 = 2.78%

after tax cost of debt = (0.707 x 3.62% x 0.79) + (0.293 x 2.78% x 0.79) = 2.02% + 0.64% = 2.66%

Answer:

Option  D is correct

Machine B is the best investment

Explanation:

The accounting rate of return is the average annual income expressed as a percentage of the average investment.  

The simple rate of return can be calculated using the two formula below:

Accounting rate of return  =

Annual operating income/Average investment × 100

To determine the the machine with the best return,we would compute the average annual return of all of the machines and then choose the machine with the highest return

This is done as follows:

Machine             Working s                                   Average annul rate

A                   45,192.56/322,804.00 ×   100 =      14.0%

B                64,695.00/215,650.00 ×   100=           30.0%

C                  60,929.70/406,198.00×   100 =          15.0%

Machine B is the best investment

Question Completion:

Safety Point Company accountants estimate that dropping industrial systems will decrease fixed cost of goods sold by $50,000 and decrease fixed selling and administrative expenses by $10,000.

Answer:

1. Differential Analysis, showing Safety Point Dropping the Industrial Systems Product Line:

Net Sales Revenue                     $370,000

Cost of Goods Sold:

 Variable                                         46,000

 Fixed                                           269,000

Total Cost of Goods  Sold             315,000

Gross Profit                                    55,000

Selling and Administrative Expenses:

 Variable                                       72,000

 Fixed                                           57,000

Total Selling and Administrative

 Expenses                                  129,000

Operating Income  (Loss)         ($74,000)

2. Safety Point Company's Contribution Margin Income Statements for the year ended May 31, 2018, under the two alternatives:

                                                     Without                 With

                                                        Industrial Systems

Net Sales Revenue                     $370,000          $710,000

Variable costs:

 Cost of Goods Sold                      46,000               82,000

 Selling and Administrative           72,000              137,000

Total Cost of Goods  Sold              118,000            219,000

Contribution Margin                    252,000            491,000

Fixed Expenses:

 Cost of goods sold                   269,000            319,000

 Selling and Administrative         57,000              67,000

Total  Fixed Expenses                326,000           386,000

Operating Income  (Loss)         ($74,000)         $105,000

3. The comparison in requirement 2 shows that eliminating the Industrial Systems Product Line makes Safety Point Company unprofitable with an operating loss of $74,000.  This loss cannot be compared to the total operating income of $105,000 which is made with the industrial systems.  So, it is not the Industrial System Product line that is causing Safety Point Company to record a loss of $56,000.  It is the fixed cost of $60,000 which cannot be eliminated with the elimination of the Industrial System product line that causes the loss and reduces total operating for the company.

Explanation:

a) Data:

Safety Point

Income Statement for the year ended May 31, 2018:

                                                              Product Line

                                                      Industrial      Household

                                                      Systems        Systems           Total

Net Sales Revenue                     $340,000      $370,000      $710,000

Cost of Goods Sold:

 Variable                                         36,000          46,000          82,000

 Fixed                                           250,000          69,000        319,000

Total Cost of Goods  Sold            286,000          115,000        401,000

Gross Profit                                    54,000         255,000       309,000

Selling and Administrative Expenses:

 Variable                                       65,000            72,000        137,000

 Fixed                                            45,000           22,000         67,000

Total Selling and Administrative

 Expenses                                    110,000           94,000      204,000

Operating Income  (Loss)          ($56,000)       $161,000     $105,000

Answer:

Net income decreased by $4,850,000.

Explanation:

Given total overhead applied = $48000000

The actual overhead = $52850000

Over/under Applied overhead = total overhead applied - Actual overhead at the end of the year.

Over / under Applied overhead = 48000000-52850000

Over / under Applied overhead = -$4850000

From the calculation, it can be seen that the overhead is underapplied therefore when under applied overhead allocated to cost of goods sold then cost of goods sold decreased by $4850000.

Answer: interactive marketing

Explanation:

Interactive marketing is also referred to as event-driven marketing or trigger based marketing and it simply has to do with using an effective communication which is two-ways to enable the consumers connect directly with a company.

Interactive marketing means service quality depends on the quality of buyer-seller interaction during the service encounter.

Answer: label

Explanation:

Product labels are the piece of material

that are being attached to a product in order for easy identification by consumers in order to know the brand and also to know the contents.

A product's label identifies the product or brand, describes several things about the product, and promotes the brand.

A product label identifies the product or brand, describes various things about the product, and promotes the brand. Developing product labeling is therefore a strategic task that can help identify the brand and position it in the market.

An example of how labeling can provide extra benefits for companies is through environmental certifications, which can come as a seal on labels and promote the company's environmental responsibility in a widespread and fast way.

Therefore, the labeling must have the design, layout and information aligned with the company's values so that there is promotion of its products and assist in consumer choice.

Find out more information about labeling here:

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Answer: A. Reserves ↓: Excess reserves ↓; Loans ↓; Deposits ↓; Money supply ↓

Explanation:

The discount rate is the rate at which the Fed lends money to banks and other depository type institutions. Normally banks have a reserve requirement that the Fed requires of them which states how much they are to leave with the Fed as a reserve. Banks tend to fall short of this reserve sometimes and so can borrow from the Fed to balance it off.

If the Fed increase the rate at which these banks can borrow, they will not want to do so thus leaving their Reserves at the Fed lower than it should be. They will then use their excess reserves which is money kept in reserve more than the Fed requires, to balance off their reserve at the Fed.

As a result of this reduction in their Excess reserve, they will have less money to give out as loans. With less loans being made, people will not have as much money to deposit after taking the loans. Money supply will then fall as a whole.

Answer:

36.38

Explanation:

The Current stock price can be calculated by identifying Present value of dividends in all three years adding terminal value of dividends in year 3.

Year Dividend Growth  Dividend   PV factor  Present Values

1  1.25           127.5%   1.59    0.900901         1.43  

 2  1.59           127.5%   2.03           0.811622          1.64  

 3  2.03          127.5%   2.59    0.731191     1.88  

 3                                    42.987(w)  0.731191           31.43  

Total PV                                                                     36.38  

Current Dividend = 2.59    

Rate of return       = 11.00%    

Growth Rate        = 6.00%    

Terminal value = Current Dividend*(1+Growth rate)/(Rate of return-Growth Rate)

Terminal value = 2.59 x (1+0.06) / (0.11-0.06)  

Terminal value =42.987

Current stock price = 1.43 +1.64+1.88+31.43

Current stock price = 36.38  

Answer:

the estimated cost of common equity using the CAPM is 11.40 %.

Explanation:

Cost of Equity = Return on the Risk Free Security + Beta × Return on Market Portfolio

                       = 7.00 % +  0.8 × 5.5%

                       = 11.40 %

The estimated cost of common equity using the CAPM is 11.40 %.

Since the return on risk-free rate is 7%, beta is 0.8 and, the market risk premium is 5.5%

So here the cost of common equity should be

= Return on the Risk Free + Beta × Market risk premium

= 7.00 % +  0.8 × 5.5%

= 11.40 %

Hence, The estimated cost of common equity using the CAPM is 11.40 %.

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Answer:  $19

Explanation:

The Contribution Margin is defined as the Sales the Variable costs.

The Contribution Margin per patron is therefore;

= Ticket Price - Variable Cost which is the cost of dinner

= 40 - 21

= $19

Answer:

The correct option is option A) 16.4%.

Explanation:

Note: This question is not complete as all the important data are omitted from it. The complete question is therefore provided before answering the question as follows:

Your estimate of the market risk premium is 9%. The risk-free rate of return is 3.8% and General Motors has a beta of 1.4. According to the Capital Asset Pricing Model (CAPM), what is its expected return?

Options:

A) 16.4%

B) 17.2%

C) 14.8%

D) 15.6%

The question is now answered as followed:

Capital asset pricing model (CAPM) can be described as a model that is employed to compute a theoretical required rate of an asset in order decide whether or not to add assets a portfolio of investment that is well-diversified.

According to the Capital Asset Pricing Model (CAPM), the expected return can be calculated using the following formula:

Expected return = Risk-free rate + (Beta * Market ris premium) .......... (1)

Where;

Risk-free rate of return = 3.8%

Market risk premium = 9%

Beta = 1.4

Substitute the values into equation (1), we have:

Expected return = 3.8% + (1.4 * 9%) = 16.40%

Therefore, the correct option is option A) 16.4%.

Answer:

D

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

Cash flow in year 0 = $-109,332

Cash flow each year from year 1 to 4 = $36,000

IRR = 12%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.