Answer:
Investment in Trading Securities of $57,000
Explanation:
Based On the information given we were told that the FAIR MARKET VALUE of those investments totaled the amount of $57,000 which therefore means that As a result of these investments, Roger Company will report INVESTMENT IN TRADING SECURITIES of the amount of $57,000.
A company is considering eliminating a department that has an annual contribution margin of $33,000 and $66,000 in annual fixed costs. Of the fixed costs, $16,500 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be: Multiple Choice ($33,000) $33,000 ($16,500) $16,500
Answer:
($16,500)
Explanation:
Calculation to determine The annual financial advantage (disadvantage) for the company of eliminating this department would be
First step is calculate the Avoidable fixed costs
Avoidable fixed costs = $66,000 − $16,500
Avoidable fixed costs = $49,500
Now let determine Segment Margin
Contribution Margin $33,000
Less Avoidable fixed costs $49,500
Segment Margin ($16,500)
Therefore The annual (disadvantage) for the company of eliminating this department would be ($16,500)
R&D Technology Corporation just paid a dividend of $0.50 per share. Analysts expect its dividend to grow at 24 percent per year for the next two years and then 8 percent per year thereafter. If the required rate of return in the stock is 16 percent, calculate the current value of the stock.
Answer:
$8.82
Explanation:
The computation of the current value of the stock is given below:
Given that
The dividend per share is $0.50
The growth rate is 24% for the next two years
And, then it should be 8 % per year
And, the required rate of return is 16%
Now based on the above information, the current value of the stock is $8.82
The calculation is to be shown in the attachment
Fill in the blanks with the category of the expanded accounting equation (assets, liabilities, stockholders' equity, dividends, revenues, expenses). Check your spelling carefully and do not abbreviate.
Inventory Retained Earnings
Dividends Cost of Goods Sold
Utilities Payable Service Revenue
Accounts Payable Rent Expense
Answer:
a. Inventory: Assets
b. Dividends: Dividends
c. Utilities Payable: Liabilities
d. Accounts Payable: Liabilities
e. Retained Earnings: Stockholders' equity
f. Cost of Goods Sold: Expenses
g. Service Revenue: Revenue
h. Rent Expense: Expenses
Explanation:
a. Inventory: Assets
As inventory is owned by the company for the purpose of generating cash, it is considered an asset. They are current assets since they must be sold within a year.
b. Dividends: Dividends
Dividends refer a portion of a company's profits that is paid out to its shareholders.
c. Utilities Payable: Liabilities
Utilities payable are liabilities since they represent utilities that the corporation is yet to settle. Utilities payable are current liabilities item since they have to be paid within a year.
d. Accounts Payable: Liabilities
Amounts owed to vendors or suppliers for products or services received but not yet paid for are referred to as accounts payable. They are current liabilities item since they have to be paid within a year.
e. Retained Earnings: Stockholders' equity
Profits that were not distributed to shareholders are known as retained earnings. However, because they are still owned by the shareholders, they are classified as equity.
f. Cost of Goods Sold: Expenses
The direct costs of manufacturing the goods that a company sells are referred to as COGS. This is an income statement item.
g. Service Revenue: Revenue
The income a corporation earns from providing a service is referred to as service revenue. This is also an income statement item.
h. Rent Expense: Expenses
The cost incurred by a firm to use a property or location for business purposes is referred to as rent expense. Rent Expense is also an income statement item.
At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $308,000 and in Allowance for Uncollectible Accounts of $910 (credit) before any adjustments. An analysis of Amy Jo's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 4% of accounts receivable. Bad debt expense for the year should be: Multiple Choice $13,230. $12,320. $11,410. $11,911.
A(n) _____________ activity includes those transactions and events that determine net income, including the purchase of merchandise, the sale of goods and services to customers, and expenditures to operate the business. Multiple choice question. operating financing noncash investing
An operating activity includes those transactions and events that determine net income, including the purchase of merchandise, the sale of goods and services to customers, and expenditures to operate the business.
A business operates through certain actions that manage and keep the business alive. Such operating activities may include more than a couple of processes that help the business stay afloat.
The operating activities of a business include all the things that a company does to provide an ongoing flow of products and services to the market. Such activities may include setting a strategy, keeping accounts of the transactions like purchasing of merchandise, the sale of goods and services to customers, and the expenditures incurred to operate the business. Operating activities are important as they control the cash flow of the business and maybe the sole source of ensuring the business stays alive. It is directly linked to the deep-end workings of the company, like the production, sale, distribution, etc. of the company.Thus, operating activities such as the determination of the incomes, purchase of merchandise, sale of goods and services, etc. all play a huge part in the successful running of the company. It's actions such as these that determine the success or failure of the company.
Learn more about cash flow activities here:
brainly.com/question/14122060
he next dividend payment by Savitz, Inc., will be $5.05 per share. The dividends are anticipated to maintain a growth rate of 5 percent forever. If the stock currently sells for $43 per share, what is the required return
Answer:
16.74%
Explanation:
Current Price = Expected Dividend / (Required Return - Growth Rate)
Required Return = (Expected Dividend / Current Price) + Growth rate
Required Return = ($5.05 / $43) + 5%
Required Return = 0.1174419 + 0.05
Required Return = 0.1674419
Required Return = 16.74%
During its most recent fiscal year, Raphael Enterprises sold 270,000 electric screwdrivers at a price of $17.10 each. Fixed costs amounted to $729,000 and pretax income was $999,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question
Answer:
$2,889,000
Explanation:
Sales units = 270,000 units
Sale Price = $17.10
Fixed cost = $729,000
Sales Value = 270,000 * $17.10
Sales Value = $4,617,000
Contribution Margin = Sales- Fixed cost
Contribution Margin = $4,617,000 - $729,000
Contribution Margin = $3,888,000
Variable Cost = Contribution margin- Pretax income
Variable Cost = $3,888,000 - $999,000
Variable Cost = $2,889,000
So, $2,889,000 is the amount that should have been reported as variable costs in the company's contribution margin income statement for the year in question.
Name 2 of the 4 structures a business can have
Answer:
4 Types of Legal Structures for Business:
Sole Proprietorship. General Partnership. Limited Liability Company (LLC) Corporations (C-Corp and S-Corp)Rachel is preparing to open her own raft rental business, cleverly named Rachel's Rafts. She figures out that her fixed costs will be $7,500 and her unit variable costs are $2 per raft. She plans to rent all 2,500 rafts she has on hand. What is Rachel's breakeven price
Answer:
selling price= $5
Explanation:
Giving the following information:
Fixed cost= $7,500
Unitary variable cost= $2
Break-even point= 2,500 units
The break-even point is the number of units to sell to cover the fixed costs. At this level, net income is zero.
So given the costs structure and 2,500 units to sell, the selling price that provides the break-even point is:
Break-even point in units= fixed costs/ (selling price - unitary variable cost)
2,500 = 7,500 / (selling price - 2)
2,500selling price - 5,000 = 7,500
2,500selling price = 12,500
selling price = 12,500 / 2,500
selling price= $5
Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $448,000, and the sales mix is 40% bats and 60% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $40 $30 Gloves 100 60 a. Compute the break-even sales (units) for both products combined. fill in the blank 1 units b. How many units of each product, baseball bats and baseball gloves, would be sold at break-even point? Baseball bats fill in the blank 2 units Baseball gloves fill in the blank 3 units
Answer: a)the break-even sales (units) for both products combined= 16,000 units
b)break-even point for Baseball bats= 6, 400units
break-even point for Baseball gloves= 9,600units
Explanation:
a. Break-even sales (units) is given as:-
Contribution margin=Sales - Variable costs
Contribution margin for Bats = $40 - $30
= $10
Contribution margin for Gloves = $100 - $60
= $40
Weighted average Contribution margin = ($10 × 40%) + ($40 × 60%)
= $4+ $24
= $28
Break-even = Fixed cost ÷ Contribution margin
= $448,000 ÷ $28
= 16,000 units
b. The computation of units of each product is shown below:-
Baseball bats = 16,000 units × 40%= 6, 400units
Baseball gloves = 16,000units × 60%=9,600units
Which section under Dispute Resolution in a CAR Buyer Representation Agreement states that a buyer and broker agree to mediate any dispute or claim arising before using court action or arbitration?
The answer to the question is Section 22A of Residential Purchase Agreement.
Dispute Resolution refers to the process by which the conflicts that takes place between two or more parties can be resolved.
Dispute Resolution can be done through negotiation, mediation, arbitration, e.t.c. C.A.R.
It should be noted that the buyer Representation Agreement refers to the document that indicates the terms and the conditions of an agreement that takes place between a buyer and the broker.
Lastly, the section that states that a buyer and broker agree to mediate any dispute or claim arising before using court action or arbitration is Section 22A of the Residential Purchase Agreement under the C.A.R. Buyer Representation Agreement.
Read related link on:
https://brainly.com/question/1917566
At the end of the first year of operations, 6,400 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows:
Direct materials $75
Direct labor 35
Fixed factory overhead 15
Variable factory overhead 12
Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept.
Answer:
Results are below.
Explanation:
Giving the following information:
The unit manufacturing costs during the year were as follows:
Direct materials $75
Direct labor 35
Fixed factory overhead 15
Variable factory overhead 12
Number of units= 6,400
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).
Absorption method:
Unit product cost= direct material + direct labor + total unitary overhead
Unit product cost= 75 + 35 + 15 + 12
Unit product cost= $137
Total ending inventory cost= 137*6,400
Total ending inventory cost= $876,800
Variable costing method:
Unit product cost= direct material + direct labor + variable overhead
Unit product cost= 75 + 35 + 12
Unit product cost= $122
Total ending inventory cost= 122*6,400
Total ending inventory cost= $780,800
The Economic Order Quantity is when: holding costs equal ordering costs total costs are minimized the product cost is not considered to determine the quantity to be purchased all of the above none of the above
Answer: all of the above
Explanation:
At the Economic Order Quantity level, the company is enjoying the lowest cost possible in relation to product ordering and storage because they are ordering just enough quantities that they are able to sell them just in time to order some new goods.
For this to happen, the holding cost must be equal to the ordering costs. At the EOQ, the product cost is irrelevant when the quantity to be bought is to be determined because it is minimized.
Assuming a specific single project with normal cash flows and a cost of capital of 10%, which of the following statements will ALWAYS be true?
a. If NPV > 0 at the stated cost of capital (i.e., 10%), then NPV will also be > 0 at a cost of capital of 12%.
b. If NPV > 0, then Profitability Index > 0.
c. If NPV > 0, then Payback Period > 0.
d. If NPV > 0, then a simple sum of the cash inflows of the project will always be greater than the cost of the project (i.e, the year 0 cash flow).
e. If NPV > 0, then IRR > 0.
Answer:
b. If NPV > 0, then Profitability Index > 0.
c. If NPV > 0, then Payback Period > 0.
d. If NPV > 0, then a simple sum of the cash inflows of the project will always be greater than the cost of the project (i.e, the year 0 cash flow).
e. If NPV > 0, then IRR > 0
Explanation:
The net present value shows the net worth of the assets or the project at the discount rate or the cost of capital. In the case when the net present value comes in positive so the internal rate of return should be more than the cost of capital
Also the profitability index lies between -1 and +1 so if the net present value is positive so the profitability should be more than 1
Hence, b to e statements are correct
Company XYZ is working on a marketing strategy for a new oral hygiene product and just discovered that XYZ's biggest competitor is launching a very similar product a month later. In conducting a SWOT analysis, the launch of the competitor's product represents an opportunity.
a. True
b. False
Answer:
XYZ Company
In conducting a SWOT analysis, the launch of the competitor's product represents an opportunity.
b. False
Explanation:
The launch of the competitor's product represents a threat to XYZ Company. It reduces XYZ Company's market competitiveness and profitability. XYZ Company may even be driven out of the market by the competitor, thus leading to massive loss for the company. However, threats must be overcome and turned into opportunities for future product development.
Ice Co stock has a beta of 1.85, the current risk-free rate is 5.10 percent, and the expected return on the market is 15.10 percent. What is Ice Co's cost of equity
Answer:
23.60%
Explanation:
According to the capital asset price model:
cost of equity = risk free + beta x (market rate of return - risk free rate of return)
5.10 + 1.85 x (15.10 - 5.10)
= 5.10 + (1.85 x 10)
=23.60%
Its investment bankers have told Donner Corporation that it can issue a 25-year, 8.1% annual payment bond at par. They also stated that the company can sell an issue of annual payment preferred stock to corporate investors who are in the 40% tax bracket. The corporate investors require an after-tax return on the preferred that exceeds their after-tax return on the bonds by 1.0%, which would represent an after-tax risk premium. What coupon rate must be set on the preferred in order to issue it at par? (hint: a portion of dividends are tax-exempt for corporate investors).
The coupon rate must be set at 9.77%
The after-tax return on the bonds is:
= Annual payment rate * ( 1 - tax rate)
= 8.1% * ( 1 - 40%)
= 4.86%
The investors would like an after-tax return on preferred stock that is more than their bond return by 1% so they would like a preferred return of:
= 4.86% + 1%
= 5.86%
If the Preferred must be issued at par, its coupon rate must be equal its before-tax yield:
= After tax yield / ( 1 - tax rate)
= 5.86% / ( 1 - 40%)
= 9.77%
More on this type of question can be found at https://brainly.com/question/17126608
Answer:
9.77 is the correct answer
i think this helps u
Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $300,000, variable expenses of $152,100, and traceable fixed expenses of $70,300. The Alpha Division has sales of $610,000, variable expenses of $335,800, and traceable fixed expenses of $131,900. The total amount of common fixed expenses not traceable to the individual divisions is $133,200. What is the company's net operating income
Answer: $86700
Explanation:
The net operating income is used in knowing the profitability of an investment. The net operating income is gotten by subtracting the expenses from the revenue.
Based on the information given in the question, the net operating income is $86700. Kindly check the attachment for further details.
Aspen Integrated Marketing used to have a strict hierarchical structure, with information given only to those who required it. The new chief executive officer, however, set up a flat organizational structure that eliminates barriers to information flow. Information that was previously available to managers alone is now given to employees as well. He also assigned mentors to new employees to help them in their jobs and enable them to perform better. At Aspen Integrated Marketing, information that was previously available to managers alone is now given to workers as well. This is an example of
Answer:
open-book management or it can also be called a boundaryless organization.
Explanation:
Open-book management
This is simply the act of sharing with employees at all levels of an organization some vital information that is somehow or previously meant for too management staff only. It also involves opening a company's financial statements to all employees and giving them the education that will enable them to understand how the company makes money and how their actions affect its success and bottom line.
Boundaryless organization
This is simply known as a form of organization structure in which there are no barriers to information flow. Boundaryless designs include barrier-free, modular and virtual organizations. An organization without barriers has permeable internal and external boundaries and requires higher level of trust and shared interests, a shift in philosophy from executive development to organizational development, greater use of teams etc.
Mott Company's sales mix is 3 units of A, 2 units of B, and 1 unit of C. Selling prices for each product are $37, $47, and $57, respectively Variable costs per unit are $30, $31, and $34, respectively. Fixed costs are $456,000. What is the break-even point in composite units?
a) 1.239 composite units
b) 1357 composite units
c) 2763 composite units
d) 4,606 composite units.
Answer:
6,000 composite units
Explanation:
A B C Total
Selling price per unit 37 47 57
Less: Variable cost per unit 30 31 34
CM per unit 7 16 23
Sales mix 3 2 1
CM per sales mix 21 32 23 76
Break even in composite unit = Fixed cost / CM per sales mix
Break even in composite unit = $456,000 / 76
Break even in composite unit = 6,000
Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Yokohama Sales $ 9,400,000 $ 24,000,000 Net operating income $ 752,000 $ 2,400,000 Average operating assets $ 2,350,000 $ 8,000,000 Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 18%. Compute the residual income for each division.
Answer:
1. Osaka ROI 32 %
Yokohoma ROI 30%
2.Osaka Residual income $329,000
Yokohoma Residual income $960,000
Explanation:
1. Computation for return on investment (ROI) in terms of margin and turnover.
Using this formula
ROI = Net operating income/Average operating assets
Let plug in the morning
Osaka ROI = 752,000/2,350,000
Osaka ROI =32 %
Yokohoma ROI = 2,400,000/$ 8,000,000
Yokohoma ROI =30%
Therefore for return on investment (ROI) in terms of margin and turnover is :
Osaka ROI 32 %
Yokohoma ROI 30%
2. Computation for the residual income for each division.
Using this formula
Residual income = Net operating income - Required return
Let plug in the formula
Osaka Residual income= 752,000 - (2,350,000*18%)
Osaka Residual income= 752,000-423,000
Osaka Residual income = $329,000
Yokohoma Residual income = 2,400,000 - ($8,000,000*18%)
Yokohoma Residual income = 2,400,000-1,440,000
Yokohoma Residual income= $960,000
Therefore the residual income for each division is:
Osaka Residual income $329,000
Yokohoma Residual income $960,000
Cary Inc. reported net credit sales of $300,000 for the current year. The unadjusted credit balance in its Allowance for Doubtful Accounts is $500. The company has experienced bad debt losses of 1% of credit sales in prior periods. Using the percentage of credit sales method, what amount should the company record as an estimate of Bad Debt Expense?
a) $2,500
b) $3,000
c) $2,980
d) $3,200
Answer: b. $3,000
Explanation:
The company's bad debt for the current year is said to be 1% of the credit sales because this is the usual rate for the past periods.
The bad debt expense for this year is therefore:
= Bad debt percentage * Credit sales
= 1% * 300,000
= $3,000
This will then be posted to the Allowance for Doubtful Accounts.
Why do tourism business have market cost for the printing
Answer:
Launching tourist ventures involves overcoming two major hurdles: first, the venture must be
financed; and second, demand must be generated. In particular, the marketing of tourism and
hospitality ventures provides special challenges, the ability to reach the target market and convince
them to travel to remote locations being a critical success factor (Dolli, N.; Pinfold, J.F., 1997). Thus,
the main issue related to the marketing of tourist services is not their production, but their sale and
promotion, so as to ensure that all the consumers’ needs are comprehensively satisfied. (Nistoreanu,
P., 2006).
It is in this context that both the producers as well as the suppliers (intermediaries) of tourism services
should take into consideration the fact that a touristic product is sold only if there is a demand on the
market for that particular product. This means that suppliers have the possibility to either offer what is
requested on the market, responding to the consumers’ needs, or to stimulate or generate the demand
for a certain product so as to facilitate the selling of that product. In both cases, however, the
producers and suppliers need to apply a promotion strategy, through which potential clients may be
informed with regard to the offer on the market, as well as induce the clients’ desire to consume a
certain product.
Explanation:
A beautiful bridge is being built over the river that runs through a major city in your state. The cost of the bridge is estimated at $600 million. Annual costs of the bridge will be $200,000, and the bridge is estimated to last a very long time. If accountants in city hall use 3% as the interest rate for analysis, what is the annualized cost of the bridge project
Answer:
$18.20 million
Explanation:
Net present value = Initial cost + (Annual cost/3%)
Net present value = $600 million + $200,000/3%
Net present value = $600 million + $6.67 million
Net present value = $606.67 million
Annualized cost = Net present value * 3%
Annualized cost = $606.67 million * 3%
Annualized cost = $18.20 million
So, the annualized cost of the bridge project is $18.20 million.
When looking to advertise a new business online, what is one of the major benefits of display ads?
Altex Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Robert Hermann, has developed the following information.
Car Truck
Estimated wheels produced 40,000 10,000
Direct labor hours per wheel 1 3
Total estimated overhead costs for the two product lines are $770,000.
Required:
a. Calculate overhead rate.
b. Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs.
A) Direct labor hrs for car wheels = estimated wheels *direct labor per wheel
40,000 *1hr = 40,000
Direct labor hrs for Truck
10,000 * 3hr= 30,000
total direct labor hrs 40,000+30,000 = 70,000 hrs
Overhead rate is total est oh cost/ total direct labor hrs
770,000/70,000= 11.00
B) Car truck wheels 40,000*11 =440,000
Truck wheels 10,000*11=110,000
Management accounting is concerned with the provision of information to help managers make informed decisions. Indicate whether this is true or false
Answer:
true I'm sure it will be correct
Is there any company or firm that doesn't use CRM?
May i know the name of that company?
Answer:
Choudhary group of company
When marginal revenue equals marginal cost, the firm a. should increase the level of production to maximize its profit. b. may be minimizing its losses rather than maximizing its profit. c. must be generating positive economic profits. d. must be generating positive accounting profits.
When marginal revenue is equal to the marginal cost, then the firm should increase the level of production to maximize its profit.
Marginal revenue simply means the increase in revenue that a company makes as a result of selling an additional output of good. Marginal cost is the cost that a company incurs for production of one extra unit of good.
It should be noted that when the marginal cost if a firm is more than the marginal revenue, it means that the firm is producing too much.
When the marginal revenue of the firm equals the marginal cost, then the firm should maximize its profit.
The correct option is A.
Read related link on:
https://brainly.com/question/10822075
Morales Corporation produces microwave ovens. The following per unit cost information is available: direct materials $30, direct labor $20, variable manufacturing overhead $16, fixed manufacturing overhead $42, variable selling and administrative expenses $18, and fixed selling and administrative expenses $24. Its desired ROI per unit is $27.00. Compute its markup percentage using a total-cost approach. (Round answer to 2 decimal places, e.g. 10.50%.)
Answer:
111%
Explanation:
Computation to determine its markup percentage using a total-cost approach
First step
Variable cost per unit= Direct materials+Direct labor+Variable manufacturing overhead+Variable selling and administrative expenses
Variable cost per unit= $30+20+16+18
Variable cost per unit= $84
Second step
Fixed cost per unit= Fixed manufacturing overhead+Fixed selling and administrative expenses
Fixed cost per unit= $42+24
Fixed cost per unit= $66
Now let determine the Variable costing markup percentage
Variable costing markup percentage= (Desired ROI+Fixed cost per unit)*100/Variable cost per unit
Variable costing markup percentage= ($27+66)*100/84
Variable costing markup percentage=110.7 %
Variable costing markup percentage=111% (Approximately)
Therefore its markup percentage using a total-cost approach is 111%
