Answer:
Undeapplied overhead= $200
Explanation:
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= 480,000 / 200,000
Predetermined manufacturing overhead rate= $2.4 per DLH
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 2.4*17,000
Allocated MOH= $40,800
Finally, the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 41,000 - 40,800
Undeapplied overhead= $200
Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August. The direct labor requirement per unit is 0.50 hours. Labor is paid at the rate of $21 per hour. The total cost of direct labor budgeted for the month of August is:
Answer:
See below
Explanation:
The budgeted direct labor cost for August can be computed by multiplying the labor rate per hour by the labor hours worked in August.
Assume one unit consumes 0.50 labor hours, the labor hours worked in August are;
Labor hours - August = 0.50 × 8,100 = 4,050 labor hours
Therefore, the labor cost for August are budgeted to be;
Direct labor cost - August = 4,050 × $21 = $85,050
A steam boiler has a first cost of $50,000. Use the sum-of-years digits (SOYD) depreciation accounting method with a $5,000 salvage value and a 10-year depreciation life; determine the boiler's book value at the end of year eight.
Answer:
$2,425
Explanation:
Sum of the digits = 10 + 9 + 8+7 +6 + 5+ 4+ 3+ 2 +1 = 55
Depreciation expense :
1st year = 10/55 x $45,000 = $8,182
2nd year = 9/55 x $45,000 = $7364
3rd year = 8/55 x $45,000 = $6,545
4th year = 7/55 x $45,000 = $5,757
5th year = 6/55 x $45,000 = $4,909
6th year = 5/55 x $45,000 = $4,091
7th year = 4/55 x $45,000 = $3,273
8th year = 3/55 x $45,000 = $2,454
Total depreciation = $42,575
Book Value = $45,000 - $42,575 = $2,425
the boiler's book value at the end of year eight is $2,425
An investment earns 35% the first year, earns 40% the second year, and loses 38% the third year. The total compound return over the 3 years was
Answer:
17.18%
Explanation:
compound return = ( 1 + 0.35)x (1 + 0.40) x (1-0.38) - 1
1.35 x 1.40 x 0.62 - 1 = 17.18%
The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6:
1. Cash balance according to the company’s records at August 31, $24,270.2. Cash balance according to the bank statement at August 31, $32,278.3. Checks outstanding, $14,668.4. Deposit in transit, not recorded by bank, $7,170.5. A check for $58 in payment of an account was erroneously recorded in the check register as $580.6. Bank debit memo for service charges, $12.A. Prepare a bank reconciliation, using the format shown in
B. If the balance sheet were prepared for Creative Design Co. on August 31 what amount should be reported for cash?
C. Must a bank reconciliation always balance (reconcile)
A) NoB) Yes.
Amount DescriptionsAdjusted balanceBank service chargeBank error in charging check as $58 instead of $580Bank error in charging check as $580 instead of $58Deposit in transit, not recorded by bankError in recording check as $58 instead of $580Error in recording check as $580 instead of $58Outstanding checksTotal adjustments
Answer:
Creative Design Co.
A. Bank Reconciliation Statement as of August 31:
Balance as per bank statement $32,278
Deposit in transit, $7,170
Checks outstanding, ($14,668)
Balance as per adjusted cash bal. $24,780
B. The amount that should be reported for cash is $32,278.
C. B) Yes. A bank reconciliation must always balance (reconcile), otherwise, the purpose of the reconciliation is defeated.
Explanation:
a) Data and Calculations:
1. Cash balance according to the company’s records at August 31, $24,270.
2. Cash balance according to the bank statement at August 31, $32,278
3. Checks outstanding, $14,668
4. Deposit in transit, not recorded by bank, $7,170
5. A check for $58 in payment of an account was erroneously recorded in the check register as $580.
6. Bank debit memo for service charges, $12
Cash Book Adjustment:
August 31 balance $24,270
add overstatement of check 522
less bank charges 12
Adjusted balance $24,780
gThe following data are available for Martin Solutions, Inc. Year 2 Year 1 Sales $1,139,600 $1,192,320 Beginning inventory 80,000 64,000 Cost of goods sold 500,800 606,000 Ending inventory 72,000 80,000 Required: Assume a 365-day year. Determine for each year:
Answer and Explanation:
The computation is shown below;
For Year 1
Average inventory = (Beginning inventory + Ending inventory)÷ 2
= ($64,000 + $80,000) ÷ 2
= $72,000
Inventory turnover = Cost of goods sold ÷ Average inventory
= $606,000 ÷ 72,000
= 8.4 times
Days in inventory = 365 ÷ Inventory turnover ratio
= 365 ÷ 8.4
= 43.5 days
For Year 2
Average inventory = (Beginning inventory + Ending inventory) ÷ 2
= ($80,000 + $72,000) ÷ 2
= $76,000
Inventory turnover = Cost of goods sold ÷ Average inventory
= $500,800 ÷ 76,000
= 6.6 times
Days in inventory = 365 ÷ Inventory turnover ratio
= 365 ÷ 6.6
= 55.3 days
The Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $75 per share. The entry to record the transaction will consist of a debit to Cash for $750,000 and a credit or credits to a.Paid-In Capital from Preferred Stock for $750,000 b.Preferred Stock for $500,000 and Retained Earnings for $250,000 c.Preferred Stock for $500,000 and Paid-In Capital in Excess of Par—Preferred Stock for $250,000 d.Preferred Stock for $750,000
Answer:
b) Preferred Stock for $500,000.00 and Paid-In Capital in Excess of Par-Preferred Stock for $250,000.00
Explanation:
Based on the information given The Appropriate journal entry to record the transaction will consist of a debit to Cash for $750,000 and a credit or credits to PREFERRED STOCK FOR $500,000.00 and PAID-IN CAPITAL IN EXCESS OF PAR-PREFERRED STOCK FOR $250,000.00
Dr Cash $750,000
(10,000 shares *$75)
Cr Preferred Stock for $500,000.00
(10,000 shares *$50)
Cr Paid-In Capital in Excess of Par-Preferred Stock for $250,000.00
($750,000-$500,000]
Hsu Company reported the following on its income statement: Income before income taxes $420,000 Income tax expense 120,000 Net income $300,000 Interest expense was $80,000. Hsu Company's times interest earned is a.6.25 times b.5 times c.5.25 times d.8 times
Answer:
a. 6.25 times
Explanation:
Times interest earned ratio = Earnings before income taxes / Total interest expense
Earnings before income taxes = Income before taxes + interest expense
Earnings before income taxes = $420,000 + $80,000
= $500,000
Total interest expense = $80,000
Therefore,
Times interest earned ratio = $500,000 / $80,000
= 6.25 times
In general, accelerating cash inflows and decelerating cash outflows would maximize the time value of money.
a. True
b. False
Answer:
a. True
Explanation:
In the case of the accelarating the cash flows, it permits the business to pay off the bills, and the other liabilities on time so that the company is eligible for taking some trade discount when the payment is made within the specified period as mentioned by suppliers
On the other hand, if the cash flows are decelerating that means the payment is not made within time so ultimately it give rise to the time value of money
Therefore the given statement is true
justify the effectiveness of personal selling as the best method of promoting a business product
Personal selling is more effective than advertising when the customer base is small and widespread. Small because the sales force cannot reach every individual and widespread so that multiple salesmen can cover different areas and sell their products or services to people of that area.
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The Science of Macroeconomics
Consider the different issues listed below. Place each of them into the appropriate category, depending upon whether the issue is best suited for study under microeconomics or macroeconomics.
A. Congress recently passed the Tax Cuts and Jobs Act of 2017.
B. Amazon now has a 40% share of all e-commerce revenues.
C. Tuition at the local university increased 11% from last year.
D. The U.S. unemployment rate fell below 4% in 2018.
1. Microeconomics
2. Macroeconomics
Answer:
Macroeconomics deals with events that affects the entire country or industry as a whole while Microeconomics affects individual members of the economy such as companies and people.
A. Congress recently passed the Tax Cuts and Jobs Act of 2017. MACRO
This Act will affect the entire nation so it will fall under Macroeconomics.
B. Amazon now has a 40% share of all e-commerce revenues. MICRO
Amazon is a single company in the market so things related to it will be considered on a micro economic level.
C. Tuition at the local university increased 11% from last year. MICRO
The local university like Amazon, is a single body in the economy and so they are a microeconomic player.
D. The U.S. unemployment rate fell below 4% in 2018. MACRO
The unemployment rate of a nation relates to the nation as a whole so this will fall under macroeconomics.
Special tools in a 3-year property class have been bought at a cost of $15,000 for the manufacture of some critical parts in a plastic company. It is estimated that the salvage value at the end of a three-year useful life is $1000. (15 points)
a) The second -year MACRS depreciation is equal to:________
b) The second-year SOYD depreciation is equal to:________
Answer:
Special Tools MACRS and SOYD
a) The second -year MACRS depreciation is equal to:________
= $6,668
b) The second-year SOYD depreciation is equal to:________
= $4,667
Explanation:
a) Data and Calculations:
Cost of special tools= $15,000
Estimated salvage value = $1,000
Special tools depreciable amount = $14,000 ($15,000 - $1,000)
Property Class = 3-year
Second-year Modified Accelerated Cost Recovery System (MACRS) for 3-year property class = 44.45%
Depreciation expense for the second year = $6,668 ($15,000 * 44.45%)
Second-year Sum-of-the-years-digit (SOYD) = $4,667 ( 2/6 * $14,000)
Wang Systems operates in a state that has a corporate tax rate of 8% and is deductible from the income taxed by the federal government. If the incremental federal tax is 34%, then the combined effective tax rate is 36.9%
a) true
b) false
Steven White is planning to save up for a trip to Europe in three years. He will need $8,100 when he is ready to make the trip. He plans to invest the same amount at the end of each of the next three years in an account paying 5 percent. What is the amount that he will have to save every year to reach his goal of $8,100 in three years
Answer:
Annual deposit= $2,560.39
Explanation:
Giving the following information:
Future value= $8,100
Number of periods= 3 years
Interest rate= 5%
To calculate the annual deposit (annual saving), we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (8,100*0.05) / [(1.05^3) - 1]
A= $2,560.39
It's clear that the lives of many creative artists are being transformed by digital technology. But competing schools of thought cite the very same technology in support of strikingly different conclusions.
One group, for example, says the ability to widely distribute the best performers' products at low cost portends a world where even small differences in talent command huge differences in reward. That view is known as the "winner take all" theory.
In contrast, the "long tail" theory holds that the information revolution is letting sellers prosper even when their offerings appeal to only a small fraction of the market. This view foresees a golden age in which small-scale creative talent flourishes as never before.
Long-tail proponents often portray best-selling entertainment as lowest-common-denominator compromises whose only real advantage is lower cost made possible by large-scale distribution and sales. If technology makes scale less important, they argue, people will turn to the more idiosyncratic offerings that they really prefer. In principle, at least, this creates exciting new possibilities for small-scale sellers.
In practice, however, winner-take-all effects still appear to dominate. Long-tail proponents predict that the least-popular offerings should be capturing market share from the most popular. But as Anita Elberse, a professor at the Harvard Business School, recounts in her 2013 book "Blockbusters", the entertainment industry's experience has been the reverse. Digital song titles selling more than one million copies, for example, accounted for 15 percent of sales in 2011, up from 7 percent in 2007. The publishing and film industries experienced similar trends.
What's happening? One possibility is that today's tighter schedules have made people more reluctant to sift through the growing avalanche of options confronting them. Still, the growing market share of top sellers doesn't invalidate the promise of small-scale creative energy. Using big data, producers can now take aim at highly idiosyncratic buyers, and online searches help many such buyers find just the quirky offerings they're seeking.
Your 3-5 sentence summary:
Answer and Explanation:
Artists' lives have been changed by digital technology. This has created different schools of thought such as the "winner take all" theory, which claims that delivering high quality products at low cost will create a world where small differences in talent demand large differences in reward, and the "long tail" theory, who claims that digital technology is creating a small portion of sellers that the market will adapt to, promoting low-cost products. These two theories are effective in different realities. However, the existence of both proves the change that programming and technology has been showing in entertainment and in the market.
According to the passage, there are two main schools of thought.
The first is the Winner take all school of thought which is of the opinion that digital technology which provides the opportunity to widely distribute the best performers' product at low cost where little differences in talent could translate to huge rewards in the market.
The second is the long tail school of thought which posits that sellers are large beneficiaries even when they control a little market share.
Anita Elberses' 2013 book "Blockbuster" reveals that a reverse trend was observed in the entertainment industry which could also be said about the publishing and film industries.
It is worthy to note that although there is an exponential growth in available options, buyers can use online search to streamline the product they wish to buy.
Learn more about Digital Technology at https://brainly.com/question/617704
A cost-cutting project will decrease costs by $66,100 a year. The annual depreciation will be $15,750 and the tax rate is 35 percent. What is the operating cash flow for this project?
Answer:
$48,478
Explanation:
Calculation to determine What is the operating cash flow for this project
Operating cash flow = [$66,100 ×(1 -.35)] + [$15,750 ×.35]
Operating cash flow = [$66,100 ×.65)+5,513.
Operating cash flow = 42,965+5,513
Operating cash flow = $48,478
Therefore the operating cash flow for this project will be $48,478
Kumi, your coworker, has been working on his taxes for the last two months. If Kumi gets audited this year, he is likely to believe that it happened because of an
Answer: external cause
Explanation:
Based on the information that's provided in the question, if Kumi gets audited this year, then he is likely to believe that the reason for the audit is due to an external cause, like the tax program that was used in the preparation of his taxes.
In such case, we can infer that the perception of Kumi is being influenced due to self-serving bias.
Multinational transfer prices are sometimes influenced by restrictions that some countries place on the repatriation of profits to the parent firm. Companies can minimize the effect of such restrictions by
A. Decreasing the prices of goods transferred into divisions in these countries.
B. Increasing the prices of goods transferred into divisions in these countries.
C. Charging less than the price that would be charged by an unrelated third party for goods transferred into divisions in these countries.
D. Keeping prices uniform throughout all domestic and foreign units within the company.
Answer: B. By increasing the prices of goods transferred into divisions in these countries.
Explanation:
Based on the information given, companies can minimize the effect of such restrictions through the increase in the prices of the goods that are transferred into divisions in these countries.
It should be noted that through the increase in the prices of goods which are transferred into divisions in these countries, then there'll be a reduction in the the profits. Due to this, there will be lower profits which would then be subjected to repatriation issues.
Therefore, the correct option is B.
A simple optimal portfolio problem is the cash matching problem.
Suppose you are given a sequence of future monetary obligations, in dollars, required to be paid at the end of each year over the next 10 years as follows:
YEAR 1 2 3 4 5 6 7 8 9 10
OBLIGATION 100 200 300 400 500 600 700 800 900 1000
We wish to invest now so that these obligations can be met as they occur, accordingly, we must purchase bonds of various maturities and use the associated future cash flows to meet the obligations.
Suppose there are 10 zero coupon bonds available to be purchased, each with a face value of $100. The maturities of the zero coupon bonds span 1 to 10 years, and the price of each zero coupon bond is consistent with a flat term structure: all spot rates are equal to 5% annually. To be clear, we have available a 1-year zero coupon bond with 5% yield, a 2-year zero coupon bond with 5% yield, a 3-year zero coupon bond with a 5% yield, all the way up to a 10-year zero coupon bond with a 5% yield, for a total of 10 zero coupon bonds. The objective function to be minimized is the total cost of the portfolio, which is equal to the sum of the prices of the bonds times the number of units purchased.
How many units of the 5-year zero coupon bond should be purchased in the optimal portfolio? Please round your numerical answer to the nearest integer number of units.
Answer:
The units of the 5-year zero coupon bond that should be purchased in the optimal portfolio is:
= 6 units
Explanation:
a) Data and Calculations:
Spot rates = 5% annually
Yield of a 1-year zero coupon bond = 5%
Yield of a 2-year zero coupon bond = 5%
Yield of a 3-year zero coupon bond = 5%
Yield of a 4-year zero coupon bond = 5%
Yield of a 5-year zero coupon bond = 5%
Yield of a 6-year up to a 10-year zero coupon bond = 5%
Future Monetary Obligations:
YEAR 1 2 3 4 5 6 7 8 9 10
OBLIGATION 100 200 300 400 500 600 700 800 900 1000
PV factor 1.05 1.1025 1.1576 1.2155 1.2763 etc.
Present value of a 5-year zero coupon bond = $78.35 ($100/1.2763)
Number of units of the 5-year zero coupon bond that should be purchased in the optimal portfolio = 6.382 ($500/$78.35)
= 6 units
At the end of November, work in process inventory consists of 181,000 units that are 50% complete with respect to conversion. Beginning work in process inventory had $460,720 of direct materials and $178,988 of conversion cost. The direct material cost added in November is $3,083,280, and the conversion cost added is $3,400,762. Beginning work in process consisted of 61,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 61,000 were from beginning work in process and 644,000 units were started and completed during the period. Required: For the first process: 1. Determine the equivalent units of production with respect to direct materials and conversion
Question Completion:
Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throughout the process. Direct materials are added at the beginning of the process.
Answer:
Victory Company
Direct Materials Conversion
Equivalent units 886,000 795,500
Explanation:
a) Data and Calculations:
Direct Materials Conversion Cost
Beginning WIP Inventory $460,720 $178,988
Costs added in November 3,083,280 3,400,762
Total costs of production $3,544,000 $3,579,750
Production Process:
Beginning Inventory = 61,000
Started and completed 644,000
Units transferred out = 705,000
Ending WIP inventory 181,000
Units under process 886,000
Equivalent units of production:
Direct Materials Conversion
Units transferred out 705,000 (100%) 705,000 (100%)
Ending WIP Inventory 181,000 (100%) 90,500 (50%)
Total equivalent units 886,000 795,500
You are an investment manager and one of your clients is a famous soccer player. She is promised to be paid $5million three years from now. What is the present value of this cash flow today
Answer:
$4,153,268.86
Explanation:
The below is missing from the question:
Your discount rate for real cash flows is 5% APR, compounded monthly and you are expecting inflation of 1.2% per year (APR, annual compounding).
We need to convert the real interest rate to an effective annual rate as shown thus:
EAR=(1+APR/n)^n-1
APR=5%
number of times interest is compounded annually=12
EAR=(1+5%/12)^12-1
EAR=5.12%
Nominal Discount rate = [(1+ Real Discount rate)*(1+Inflation Rate)] - 1
Nominal Discount rate =(1+5.12%)*(1+1.2%)-1
Nominal discount rate=6.38%
Present value=future value/(1+nominal discount rate)^3
future value=$5,000,0000
nominal discount rate=6.38%
n=3 years
PV=$5,000,000/(1+6.38%)^3
PV= $4,153,268.86
In an oligopoly model with a kinked demand curve, a decrease in a firm's marginal cost general leads to _____ .
a. None of the options are correct.
b. reduced output and a higher price
c. increased output and a lower price
d. higher output and a higher price
Answer:
Option a (None of the options are correct) is the right alternative.
Explanation:
A manner of opportunities and management when two or even more businesses have quite a share of the economy would be characterized as an oligopoly. Those who can determine production and prices throughout the combination.Every opportunity to make simplification generalizations underlines one facet of that same oligopoly situation.Thus the above option is the correct one.
During 2020, Lincoln Company hires 22 individuals who are certified to be members of a qualifying targeted group. Each employee works in excess of 600 hours and is paid wages of $13,600 during the year. Determine the amount of Lincoln's work opportunity credit. $fill in the blank 1 .
Answer:
$52,800
Explanation:
The computation of the amount of Lincoln's work opportunity credit is shown below:
Since the employees work in excess of 600 hours so it should be more than 400
So, the work opportunities credit for each would be $6,000 × 40% i.e. $2,400
Now the amount of Lincoln's work opportunity credit is
= $2,400 × 22
= $52,800
Persuasion, collaboration, participation and direction are four styles of leadership that all leaders can use. Can all four of these styles be used for a transformative leader and can all four be used by a transactional leader
Answer:
false
Explanation:
All four leadership styles: persuasion, collaboration, participation, and direction are not styles used by both transformative leaders and transactional leaders.
In transformative leadership, these styles are used, as the focus of this leadership style is to inspire your subordinates through trust and easy communication that motivates and encourages employees to be more productive, giving a sense of work appreciation and personal pride.
In transactional leadership, the leader is the one who uses a reward system for the good performance of subordinates, not intervening in decisions, that is, he is not a leader who participates, directs or collaborates with the progress of the work, but who uses the " laissez-faire" which is a term that corresponds to a style where the leader does not make decisions, but lets the employees themselves have the autonomy to make them.
If a contingent liability is reasonably estimable and it is reasonably possible that the contingency will occur, the contingent liability Group of answer choices should be recorded in the accounts. should be disclosed in the notes accompanying the financial statements. should not be recorded or disclosed in the notes until the contingency actually happens. must be paid for the amount estimated.
Answer:
Should be disclosed in the notes accompanying the financial statements
Explanation:
You have to report contingent liabilities that are reasonably possible to occur, but since they haven’t occurred, you don’t record or pay them until they actually occur. You report them in the notes only.
A personal financial plan specifies financial goals and describes:_______.a. spending, saving, and credit card financing.b. saving, investing, and asset valuation.c. saving and spending only.
d. spending, financing, and investment plans.
Answer:
d. spending, financing, and investment plans.
Explanation:
The plan that represent the financial goals and explains the spending, financing and investment plans that could be attained is known as the personal financial plan. this means that in the personal financial plan, all three plans i.e. spending, financing and investment should be involved
Therefore the option d is correct
Moral hazard is a situation when a. contract terms attract parties that have a higher preference for risk b. contract terms incentivize applications of worse customers and repels better ones because of generous variable benefits, but high fixed-costs c. contract terms incentivize one party to take on more risk because they don't carry the full cost of the risk d. contract terms repel parties that have a lower preference for risk
Answer:
contract terms incentivize one party to take on more risk because they don't carry the full cost of the risk
Explanation:
A moral hazard can be understood as the concept that a participant that is sheltered from danger in some manner will behave significantly than if they were not.
Every day, we see moral hazard in the form of established academics who remain apathetic presenters, individuals who have burglary insurance who are less attentive about where they parked, compensated workers who take long vacations, and etc.
Thus, from the above we can conclude that the correct option is C.
Ace Technologies, Inc., wants to issue securities for sale to the public. With respect to this issue, the essential purpose of the Securities Act of 1933 is to
Answer:
require disclosure of all essential information concerning the issuance of securities.
Explanation:
The Securities Act of 1933 was considered the first federal legislation which is used to regulating the stock market. This act took the power away from the states and it gave the powers to the federal government. The Securities Act also created an uniform set of rules which is used to protect the investors against any kind of fraud. President Franklin D gave his assent to this act.
In the context, if Ace Technologies wants to issue securities to the general public for sale, Ace Technologies should disclose all the essential information about the issuance of the securities according to the Securities Act of 1933.
Financial Statements. Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corp. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should go in the balance sheet or income statement and whether it is an asset or liability. Help him by rearranging the items and filling in the blanks.
BALANCE SHEET
Payables 35 Inventories 50
Less accumulated depreciation 120 Receivables 35
Total current assets _ Total current liabilities _
Long-term debt 350 Interest expense 25
Property, plant, and equipment 520 Total liabilities _
Net fixed assets _ Shareholders’ equity 90
Total assets _ Total liabilities and shareholders’ equity_
INCOME STATEMENT
Net sales 700
Cost of goods sold 580
Selling, general, and administrative expenses 38
EBIT
Debt due for repayment 25
Cash 15
Taxable income
Taxes 15
Depreciation 12
Net income -
What is the correct total for the following?
a. Current assets
b. Net fixed assets
c. Total assets
d. Current liabilities
e. Total liabilities
f. Total liabilities and shareholders’ equity
g. EBIT
h. Taxable income
i. Net income
Answer:
Omega Corp.
The correct totals for the following:
a. Current assets = $100
b. Net fixed assets = $400
c. Total assets = $500
d. Current liabilities = $60
e. Total liabilities = $410
f. Total liabilities and shareholders’ equity = $500
g. EBIT = $70
h. Taxable income = $45
i. Net income = $30
Explanation:
a) Data and Calculations:
BALANCE SHEET
Cash $15
Receivables 35
Inventories 50
Total current assets $100
Property, plant, and equipment 520
Less accumulated depreciation 120
Net fixed assets $400
Total assets $500
Liabilities and Equity
Payables $35
Debt due for repayment 25
Total current liabilities $60
Long-term debt 350
Total liabilities $410
Shareholders’ equity 90
Total liabilities and shareholders’ equity $500
INCOME STATEMENT
Net sales $700
Cost of goods sold 580
Gross profit 120
Selling, general, and
administrative expenses 38
Depreciation 12
EBIT 70
Interest expense 25
Taxable income 45
Taxes 15
Net income 30
Cox Footwear pays a constant annual dividend. Last year, the dividend yield was 3.2 percent when the stock was selling for $35 a share. What is the current price of the stock if the current dividend yield is 2.9 percent
Answer:
$38.62
Explanation:
Dividend yield = dividend / price
3.2% = dividend / $35
0.032 x 35 = dividend
dividend = $1.12
current price of the stock
2.9% = $1.12 / price
price = $1.12 / 0.029
= $38.62
Anthony Walker plans to invest $28,400 a year at the end of each year for the next seven years in an investment that will pay him a rate of return of 9.8 percent. How much money will Anthony have at the end of seven years
Answer:
267,785.95
Explanation:
28400 X (1.098)^7 = 267,785.95
