If a company uses straight-line depreciation, the annual average investment can be calculated as: (Check all that apply.)

Answer:

B) plan 1 : worker earning  y = x - 0.14  ,  unit labor = [tex]\frac{x-(0.14)}{x}[/tex]

   plan 2 : worker earning y  = 0.5x + 0.5, unit labor = (0.5x + 0.5) / x

C) At 128%

D ) plan D IS PREFERABLE

Explanation:

In the first case Benefits are split : 30% to worker , 70% to company ( up to 120% ) performance

In the second case benefits 50% go to the worker and 50% go the company

B) The equations for worker earnings and normalized unit labor costs for each scheme

Plan 1 :

y  ( percentage earning of worker ) = 1

unit labor cost = Y / 1

y = 0 - 30

unit labor = 0.3 / x

y = x - 0.14  therefore unit labor = [tex]\frac{x-(0.14)}{x}[/tex]

plan 2 :

y  ( percentage earning of worker ) = 1,   y  = 0.5x + 0.5

unit labor cost :  Y / 1  =  (0.5x + 0.5) / x

C )  The point at which the two plans break even

0.5x + 0.5 = x - 0.14

0.5 + 0.14 = x - 0.5x

0.64 = x(1 - 0.5 )

x = 0.64 / 0.5 =  1.28 = 128%

D) The company would prefer plan 1

Answer:

Lopez Company

the journal entries to record prepaid insurance:

July 1, 2017, 6 months of insurance are prepaid

Dr Prepaid insurance 1,400

    Cr Cash 1,400

the adjusting entry made on December 31 to record insurance expense:

December 31, 2017, insurance expense

Dr Insurance expense 1,400

    Cr prepaid insurance 1,400

Zim Company

supplies account initial balance $5,400

then it purchased $2,200 worth of supplies during the year

final account balance $900

supplies expense = $5,400 + $2,200 - $900 = $6,700

Adjusting journal entry:

December 31, 2017, supplies expense

Dr Supplies expense 6,700

    Cr Supplies 6,700

Ending balances:

Answer:

The Present Value of the bond at the market rate = $90,438.36  

Explanation:

The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).  

Value of Bond = PV of interest + PV of RV  

The value of bond can be worked out as follows:  

Step 1  

PV of interest payments  

Semi annul interest payment  

= 10% × 81000 × 1/2 = 4050

Semi-annual yield = 8%/2= 4 % per six months  

Total period to maturity (in months)  

= (2 × 8) = 16 periods (Note the bond term is 8 yeras)  

PV of interest = 4050 × (1-1.04^(-16))/0.04 = 47,191.79

Step 2  

PV of Redemption Value  

Assuming a redemption value equals to the nominal value =

PV of RV = 81,000 × 1.04^-16 =  43,246.56  

Step 3 :Total Present Value

Total prent value =  43,246.56  + 47,191.79721  =  90,438.36

The Present Value of the bond at the market rate = $90,438.36  

Answer:

HCA

a. HCA's Liabilities-to-assets ratios and times-interest-earned ratios in the years 2005 through 2009:

1. Liabilities-to-assets ratios = Total liabilities/Total Assets

                  Dec. 09     Dec. 08    Dec. 07     Dec. 06     Dec. 05

                 136.63%     141.60%    143.18%     147.51%     78.12%

2. Times-interest-earned ratios = EBIT/Interest Expense

                  Dec. 09     Dec. 08      Dec. 07       Dec. 06       Dec. 05

                 1.91 times  1.45 times   1.33 times    2.76 times   4.11 times

b. The percentage decline in EBIT that HCA could have suffered each year between 2005 and 2009 to make it unable to make interest payments out its operating earnings, where operating earnings is defined as EBIT:

                  Dec. 09     Dec. 08      Dec. 07       Dec. 06       Dec. 05

                 191%            145%           133%            276%         411%

c. The volatility of HCA's cash flows over the period 2005 to 2009:

The standard deviation of the cash flows (cash and cash equivalents) is 115, showing that there is so much volatility in the cash flows.

d. HCA's return on invested capital (ROIC) in the years 2005 - 2009:

= Net Income - Dividend / Total Liabilities + Equity x 100

ROIC =                        4.37%      2.77%      3.64%        4.38%     6.41%

Explanation:

a) Data and Calculations:

HCA INC

ANNUAL INCOME STATEMENT

($ MILLIONS, EXCEPT PER SHARE)

                                  Dec. 09    Dec. 08     Dec. 07     Dec. 06     Dec. 05

Sales                         $ 30,052  $ 28,374  $ 26,858   $ 25,477  $ 24,455

Cost of Goods Sold     24,826     24,023     22,480       21,448      20,391

Gross Profit                   5,226         4,351        4,378        4,029       4,064

Depreciation                  1,425          1,416        1,426          1,391         1,374

Operating Profit            3,801         2,935       2,952        2,638       2,690

Interest Expense           1,987         2,021        2,215           955          655

Non-Operating

 Income/Expense           188            256           661             179           412

Pretax Income             2,002           1,170        1,398         1,862       2,327

Total Income Taxes       627            268            316           625          725

Minority Interest            321             229           208           201           178

Net Income             $ 1,054           $ 673       $ 874      $ 1,036    $ 1,424

ANNUAL BALANCE SHEET

ASSETS                   Dec. 09    Dec. 08     Dec. 07     Dec. 06     Dec. 05

Cash & Equivalents  $ 312        $ 465       $ 393       $ 634       $ 336

Net Receivables      3,692         3,780       3,895        3,705       3,332

Inventories                 802            737            710           669          616

Other Current

 Assets                     1,771           1,319        1,207          1,070          931

Total Current

 Assets                   6,577         6,301       6,205         6,078       5,215

Gross Plant, Property

 & Equipment      24,669       23,714     22,579       21,907     20,818

Accumulated

 Depreciation       13,242       12,185        11,137       10,238       9,439

Net Plant, Property

 & Equipment       11,427        11,529      11,442        11,669      11,379

Investments

 at Equity                 853            842         688            679         627

Other Investments 1,166         1,422       1,669         1,886       2,134

Intangibles            2,577        2,580      2,629         2,601      2,626

Deferred Charges   418           458          539             614           85

Other Assets          1,113          1,148          853             148          159

TOTAL ASSETS  24,131      24,280     24,025       23,675    22,225

LIABILITIES

Long Term Debt Due

In One Year          846          404           308             293         586

Accounts

 Payable            1,460         1,370         1,370            1,415       1,484

Taxes Payable      -               224            190                -              -

Accrued

 Expenses      2,007           1,912          1,981           1,868       1,825

Total Current

 Liabilities       4,313           3,910        3,849          3,576      3,895

Long Term

 Debt          24,824        26,585      27,000         28,115      9,889

Deferred Taxes -                  -                -                  390         830

Minority

 Interest       1,008              995          938             907          828

Other

Liabilities    2,825           2,890        2,612          1,936        1,920

TOTAL LIA-

 BILITIES   32,970         34,380     34,399       34,924       17,362

Preferred

 Stock            147                155           164             125                -

Common

 Stock               1                     1                1                 1                4

Capital

 Surplus      226                 165            112                 -                -

Retained

 Earnings (9,213)          (10,421)     (10,651)       (11,375)       4,859

Common

 Equity     (8,986)        (10,255)     (10,538)      (11,374)       4,863

TOTAL

 EQUITY  (8,839)         (10,100)     (10,374)      (11,249)       4,863

TOTAL LIABILITIES &

EQUITY $24,131      $ 24,280  $ 24,025   $ 23,675  $ 22,225

ii) Liabilities-to-assets ratio:

                                  Dec. 09    Dec. 08     Dec. 07     Dec. 06     Dec. 05

Liabilities                    32,970      34,380     34,399       34,924       17,362

Assets                         24,131      24,280     24,025       23,675     22,225

                                 136.63%     141.60%    143.18%     147.51%     78.12%

iii) Times Interest Earned:

Operating Profit           3,801         2,935       2,952        2,638       2,690

Interest Expense          1,987         2,021        2,215           955          655

                                1.91 times   1.45 times 1.33 times  2.76 times 4.11 times

iv) Volatility:  This is the degree of change of the cash flows, showing its tendency to change from one period to the other.  As calculated, the volatility is very high, showing that the cash flows have higher risk of change.  See below:

                                  Dec. 09    Dec. 08     Dec. 07     Dec. 06     Dec. 05

Cash & Equivalents     $ 312      $ 465        $ 393         $ 634       $ 336

Mean = $428

Deviation from mean     -116            37            -35             206          -92

Squared deviation      13,456       1,369         1,225       42,436      8,464

Sum of squared deviation = 66,950

Mean = 13,390

Square root of mean or Standard Deviation = 115

v) Return on Invested Capital = Net Income/Total liabilities + Equity

                               Dec. 09    Dec. 08     Dec. 07     Dec. 06     Dec. 05

Net Income             $ 1,054        $ 673       $ 874      $ 1,036    $ 1,424

TOTAL LIABILITIES &

EQUITY                  $24,131  $ 24,280  $ 24,025   $ 23,675  $ 22,225

ROIC =                        4.37%      2.77%      3.64%        4.38%     6.41%

Answer: True

Explanation:

Buying enough negatively correlated stock can indeed help in diversification of a Portfolio and this on its own is very important as it reduces risk. The type of risk that it reduces however is Unsystematic risk. This is the unique risk inherent in owing stocks.

Systematic risk which is also called undiversifiable risk however cannot be so easily eliminated. This risk is inherent in the Market  or the Market segment in question and results from a mix of the Economic, Geo-political and Financial factors in the market. As such, it will not be possible to eliminate all systematic risk.

Answer:

Yes. Cash flows from investing activities should also include return on investment.

Explanation:

Dividend and Interest revenue arise as a result of the Investments that were made by the company and as such constitutes cash flow from investing activities of a Company.

Answer:

$117

Explanation:

Costco Medical Supply's merchandise inventory:

                  Surgical equip.  Surgical supplies  Rehab equip.  Rehab  supplies

Selling price          $276              $134                   $354                    $152

Cost                        $156              $136                   $255                    $152

Cost to sell               $17                 $17                      $16                       $7

Net realizable V.   $259              $117                   $338                    $145  

If we apply the lower of cost or net realizable rule for determining the value of surgical supplies, its value would be: $117 < $136

When we use the lower of cost or net realizable rule, we should value our inventory at the lowest value between original purchase cost and current net realizable value of the products.

Answer:

Manufacturing cost =$744,000

Explanation:

The total manufacturing cost is the sum of the variable manufacturing cost and the fixed manufacturing cost.

Manufacturing cost = variable cost + Fixed cost

This can be represent using the formula below

Y = bx + a

Y -Manufacturing cost

b- Variable cost per unit

a- Fixed cost

X- number of units

Y = (45,000× 16) + 24,000 = $744000

Budgeted Manufacturing cost =$744,000

Answer:

The answer is $504,000

Explanation:

Budgeted total manufacturing cost is the total variable cost and fixed cost the company had calculated for the production of a particular product.

Budgeted total manufacturing costs in March is:

(Variable manufacturing cost x Linear feet installed) + Fixed manufacturing cost

($16 x 30,000 linear feet) + $24,000

= $480,000 + $24,000

=$504,000

Answer: Other insured rider

Explanation:

The rider that is attached to a life insurance policy that provides coverage on the insureds family members is referred to as the other insured rider.

When more than one member of a particular family is to be provided insurance for, this type of rider is typically used.

Answer:

Ball Bearings, Inc.

a) Calculations of Costs of Production:

Qty Total Fixed   Total       Total    Marginal  Average  Average   Average

       Costs ($)  Variable  Costs ($) Costs ($)   Fixed      Variable     Total

                        Costs ($)                                Costs ($)  Costs ($) Costs ($)

 0      100             0            100         100          100              0            100

 1       100           50            150         50           100             50           150

2       100           70            170          20            50             35            85

3       100           90           190          20            33              30            63

4       100          140          240          50            25              35           60

5       100         200         300          60             20             40            60

6       100         360         460         160             17              60             77

b)  For the first ball bearings, the profit in this case is a loss of $100 (Revenue - Total costs; $150 - 50).

c) False

d) At this level of production, the firm's profit, is a loss of $100.  This is the best decision the firm can make: False.

Explanation:

a) Data:

Costs of production as follows:

Quantity   Total Fixed Costs ($) Total  Variable Costs ($)

   0                        100                                   0

   1                         100                                 50

  2                         100                                 70

  3                         100                                 90

  4                         100                                140

  5                         100                              200

  6                         100                              360

a) Ball Bearings, Inc. can become profitable when the total revenue exceeds the total costs (variable and fixed).  Ball's marginal cost is the additional cost that the corporation incurs for producing one additional unit of ball bearings.  Its average fixed, variable, and total costs are computed by dividing the total fixed, variable, and total costs by the number of ball bearings produced.

Answer:

the price of Bond A will change by 4.21% and the price of Bond B will change by 7.36%.

Explanation:

Bonds A and B

current bond price $1,000

interest rate 7%

Bond A matures in 5 years, annual payments

Bond B matures in 10 years, annual payments

if market interest decreases to 6%

Bond A:

$1,000 / (1 + 6%)⁵ = $747.26

$70 x 4.2124 (annuity factor, 6%, 5 periods) = $294.87

market price = $1,042.13

% change = 4.21%

Bond B:

$1,000 / (1 + 6%)¹⁰ = $558.39

$70 x 7.3601 (annuity factor, 6%, 10 periods) = $515.21

market price = $1,073.60

% change = 7.36%

Answer: a. FIFO to LIFO, but not LIFO to FIFO

Explanation:

Well the inventory changes which would likely be accounted for is the FIFO ( first in first out system ) to LIFO ( last in first out system ). But not the LIFO ( last in first out )  to FIFO ( first in first out ). This system are mostly used in sales where for FIFO the first goods to arrive leaves first and for LIFO the opposite of FIFO

Answer:

$282,706

Explanation:

Calculation to Determine the purchase price of the house

First step

In order for us to determine the purchase price of the house we would be using TVM Calculation to find the PMT

Hence,

PMT =

PV = 200,000

FV = 0

N = 240

I = 0.084/12

Thus,PMT = $1,723.01

The Second step will be to Calculate the Loan Amount Using TVM Calculation,

PV =

FV = 0

PMT = -1,723.01

N = 360

I = 0.084/12

Thus, PV = $226,164.98

Last step is to Determine the purchase price of the house

Using this formula

Purchase price=PV/(100%-20% down)

Let plug in the formula

Purchase price =226,164.98/(0.80)

Purchase price = $282,706

Therefore the purchase price of the house will be $282,706

Answer:

Results are below.

Explanation:

Giving the following information:

Unit produced 11,000

Variable cost per unit:

Direct materials $150

Direct labor $450

Variable manufacturing overhead $47

Fixed costs:

Fixed manufacturing overhead $790,000

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).

Variable costing:

Unitary cost= 150 + 450 + 47= $647

Absorption costing:

Unitary fixed overhead= 790,000/11,000= $71.82

Unitary cost= 647 + 71.82= $718.82

Answer:

Steel industry in the United States of America has had its up and down over the years. this is especially going by the fact that it is cheaper to import steel from outside America than to buy those produced in U.S. However, high tariff on steel import would enable the domestic steel producers to meet their obligation as well as recoup their investments in the steel industry in U.S.

For example, most construction based organisation would prefer to buy from domestic steel producer if the price and tariff of imported ones makes it extremely difficult to purchase.

On the other-hand, the high tariff placed on steel import could also harm steel users due to the fact that, the quality of steel which they buy from outside U.S would no longer be available to them.

Also, they would be forced to buy at whatever price from domestic producers whether they had need for the steel or not due to high tariff on imported ones.

When a high tariff is placed on steel imports, U.S. steel producers produce more steel and they pay a higher price.

Answer: D. more; higher

Explanation:

Answer: Consumer Spending

Explanation:

As more Americans find jobs, they will be able to earn an income. As they do so they will be able to spend more on goods and services in the economy thereby increasing Consumption spending which is the largest determinant of Aggregate Demand.

As a result of this increase in Consumption, Aggregate demand will change by increasing as well.

Answer: $10,100

Explanation:

Based on the information that have been given in the question, the project's operating cash flow goes thus:

Sales. $33,300

Less: cost. $19,700

Less: depreciation. $1,900

Profit before tax $11,700

Less: tax. $3500

Net profit. $8200

Add: depreciation. $1900

Operating cash flow. $10,100

Answer: $8,400

Explanation:

The $9,600 is for 2 years in advance. This can be apportioned per month at a rate of;

= 9,600/24

= $400 per month.

October to the end of the year is 3 months so;

= 400 * 3

= $1,200 will be recorded for the year.

Prepaid Insurance will therefore reduce to;

= 9,600 - 1,200

= $8,400

Answer:

The answer is D. 7.22 percent

Explanation:

Interest payments are being made semiannually, this means it is being paid twice in a year

N(Number of periods) = 16 periods ( 8 years x 2)

I/Y(Yield to maturity) = ?

PV(present value or market price) = $987

PMT( coupon payment) = $35 ( [7 percent÷ 2] x $1,000)

FV( Future value or par value) = $1,000.

We are using a Financial calculator for this.

N= 16; PV = -987 ; PMT = 35; FV= $1,000; CPT I/Y= 3.61

3.61 percent is the Yield-to-maturity for semiannual

Therefore, the Yield-to-maturity of the bond annually is 7.22 percent (3.61 percent x 2)

Answer:

The answer is A. improvement in technology

Explanation:

Labor productivity growth is not relevant to a decline in university attendance.

Applying the Malthusianism theory, an increase in population growth can't lead to labor productivity growth because while that population growth is potentially exponential, the growth of resources is linear.

Finally, the physical capital per worker is the quantity of equipment and input resources that are used to produce output goods and services. It has no direct influence to the labor productivity growth.

Answer:

The correct answer is the option D: All of the above.

Explanation:

To begin with, a company's primary strategy that focus on completing the main goal of the company of increasing the sales and with that the profits is considered to be the most important element that the business has in order to keep existing and therefore that as the time passes and the context around the organization changes, that strategy evolves. And there are a lot of reasones why that could happen, including the market conditions that vary over the pass of years as well as the need to react to the competitors decisions in order to keep fighting for the market. And other consequence that may help the change of the strategy is the effort itself of managers to make the strategy better as ideas turn to came out.

Answer:

nominal

Explanation:

There is a nominal rate that is the interest rate stated on a loan without taking into account the inflation or the compounding of interests and a real rate that is the one that is adjusted to reflect the real cost of the loan to the borrower. According to this, the answer is that the nominal rate of interest is the actual rate charged by the supplier and paid by the demander of fund because this is the rate that is stated when taking a loan.

Answer and Explanation:

The computation is shown below:

a. The Accumulated amount of her investment atter taxes is

Before that first we have to determine the future value which is shown below:

As we know that

Future value = Present value × (1 + interest rate)^number of years

= $29,000 × (1 + 0.04)^11

= $44,644.17

And, the tax rate is 15%

So, the after tax value is

= $44,644.17 × (1 - 0.15)

= $37,947.54

b. Now for the second part it is

= Annual cash flows × Annuity factor at 3.4% for 11 years

= $29,000 × 10.638

= $308,502

Answer: I rehearse repeatedly and practice stress reduction techniques

Explanation:

The best response that the speaker can give will be that "rehearse repeatedly and practice stress reduction techniques".

By rehearsing repeatedly and practice stress reduction techniques, one will be at ease and comfortable in front of a large audience.

Answer:

$-2,801.13

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Cash flow in year 0 = $-210,000

Cash flow each year from year 1 to 2 = 0

Cash flow each year from year 3 to 12 = $46,000.

I = 12%

NPV = $-2,801.13

To find the NPV 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 NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

Answer:

Hannah Co.

The debit to Retained Earnings will be:

$44,000

Explanation:

Common Stock outstanding = 10,000 shares of $10 par

With a 10% stock dividend, the outstanding shares increase to 11,000 (10,000 x 1.1).

The cash dividend per share = $4

Total cash dividend equals $44,000 ($4 x 11,000).

So the Retained Earnings will be debited to the sum of $44,000 following the cash dividend to reduce the Retained Earnings account by $44,000.

Answer:

1.34

Explanation:

Computation for the market/book ratio

Using this formula

Market/book ratio=Stock price/Book value per share

Let plug in the formula

Market/book ratio=$33.50/$25.00

Market/book ratio=1.34

Therefore the Market/book ratio will be 1.34.

Answer:

5.65%

Explanation:

Last year a stock of $78.00 was bought

During the period of one year $2.70 was received in dividend and inflation averaged 3.2%

Today the shares was sold for $82.20

The first step is to calculate the nominal return

= ($82.20-$78.00+$2.70)/$78.00

= 6.9/78

= 0.0885×100

= 8.85%

Therefore, the approximate real rate can be calculated as follows

= 8.85%-3.2%

= 5.65%

Hence the approximate real rate of return on this investment is 5.65%

Answer:

Total cost= $123,525

Explanation:

Giving the following information:

Fixed costs: supervisor's salary $1,200; factory rent $2,900

Mixed costs: utilities $1,700+ $5.75 per unit

Variable costs per unit manufacturing labor wages $21.00; supplies used in production $9.00; packaging cost $2.75, warranty cost $4

We need to determine the total cost of 2,770 units:

Total variable cost= 5.75*2,770 + 21*2,770 + 9*2,770 + 2.75*2,770 + 4*2,770

Total variable cost= $117,725

Total fixed costs= 1,200 + 2,900 + 1,700= $5,800

Total cost= 117,725 + 5,800= $123,525

Answer:

Hello your question is incomplete below is the missing part and the needed diagram

suppose John is shopping and has $20 to spend on hand sanitizer. He can go with Germ-X (G) at $1 per fluid ounce (pG=1), or he can purchase purell (P) at $1.25 per fluid ounce (Pp=1.25). His utility function for the two different hand sanitizers is as follows:

U = G +1.1P

where G and P are measured in fluid ounces.

Solve the consumer’s problem for John’s optimal demand for Germ-X and Purell. (You should find actual numbers representing the quantity of Germ-X chosen and the quantity of purell chosen

ANSWER:  The solution =  (Germ-x,Purell ) = (20,0).

Explanation:

The consumers problem for John's optimal demand for Germ-x  and Purell as seen in the diagram can solved by John going maximizing his utility given the constraint of the budget,

that means that John will purchase/spend the constrained budget of ($20) on Germ-x  since the unit price of Germ X is at $1 while Purell's unit price is at $1.25 per fluid ounce