Answer:
Beverage Division Cheese Division
1. Return on investment 12.89% 18.25%
2. Profit margin 13.15% 16.24%
3. Investment turnover 1.02 0.89
Explanation:
a) Data and Calculations:
Beverage Division Cheese Division
Invested assets, beginning $ 2,669 $ 4,462
Invested assets, ending 2,597 4,404
Average invested assets $ 2,633 $ 4,433
Sales 2,685 3,929
Operating income 353 638
Return on investment 12.89% 18.25%
Profit margin 13.15% 16.24%
Investment turnover 1.02 0.89
Return on investment = Profit margin/Investment turnover
Beverage = 13.15%/1.02 = 12.89%
Cheese = 16.24%/0.89 = 18.25%
Profit margin = Operating income/Sales * 100
Beverage = $353/2,685 * 100 = 13.15%
Cheese = $638/3,929 * 100 = 16.24%
Investment turnover = Sales/Average invested assets
Beverage = $2,685/$2,633 = 1.02
Cheese = $3,929/$4,433 = 0.89
WV Construction has two divisions: Remodeling and New Home Construction. Each division has an on-site supervisor who is paid a salary of $74,000 annually and one salaried estimator who is paid $42,000 annually. The corporate office has two office administrative assistants who are paid salaries of $46,000 and $35,000 annually. The president's salary is $147,000. How much of these salaries are common fixed expenses?
$312,000
Office administrative assistant $ 74,000
Office administrative assistant 49,000
President's salary 189,000
Common fixed expenses is the sum of the mentioned amounts above
= $ 312,000
if that one is not good then here is a other answer
WV Construction two divisions common fixed expenses is $312000
WV Construction two divisions Compensation cost that can't be distributed on a division astute premise are common fixed costs and can't be dispensed toward any office.
Total common fixed expense = $74000 + $49000 + $189000
Total common fixed expense = $312000
During the current calendar year, Bowman Corporation purchased $660,000 of inventory. The beginning inventory balance was $84,000, and the inventory balance at year-end was $120,000. The inventory turnover for the current year was:
Answer:
6.12 times
Explanation:
Cost of Goods Sold = $84,000 + $660,000 - $120,000
Cost of Goods Sold = $624,000
Average inventory = ($84,000 + $120,000) / 2
Average inventory = $102,000
Inventory Turnover = Cost of Goods Sold / Average inventory
Inventory Turnover = $624,000 / $102,000
Inventory Turnover = 6.117647059
Inventory Turnover = 6.12 times
Poe Company is considering the purchase of new equipment costing $81,500. The projected net cash flows are $36,500 for the first two years and $31,500 for years three and four. The revenue is to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of an annuity of 1 and present value of an annuity for different periods is presented below. Compute the net present value of the machine.
Answer:
$27,028.45
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
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
Cash flow in year 0 = $-81,500
Cash flow in year 1 and 2 = $36,500
Cash flow in year 3 and 4 = $31,500
I - = 10%
NPV = $27,028.45
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
Exercise 5-10 Lower of cost or market LO P2 Martinez Company's ending inventory includes the following items. Product Units Cost per Unit Market per Unit Helmets 27 $ 55 $ 59 Bats 20 83 77 Shoes 41 100 96 Uniforms 45 41 41 Compute the lower of cost or market for ending inventory applied separately to each product.
Answer:
Martinez Company
Ending inventory is:
= $8,806.
Explanation:
a) Data and Calculations:
Product Units Cost per Unit Market per Unit
Helmets 27 $ 55 $ 59
Bats 20 83 77
Shoes 41 100 96
Uniforms 45 41 41
Lower of cost or market value Valuation:
Product Units Cost per Unit Market per Unit LCM
Helmets 27 $ 55 $ 59 $1,485
Bats 20 83 77 1,540
Shoes 41 100 96 3,936
Uniforms 45 41 41 1,845
Total cost of ending inventory $8,806
You are considering two investment alternatives. The first is a stock that pays quarterly dividends of $0.32 per share and is trading at $27.85 per share; you expect to sell the stock in six months for $31.72. The second is a stock that pays quarterly dividends of $0.67 per share and is trading at $34.98 per share; you expect to sell the stock in one year for $36.79. Which stock will provide the better annualized holding period return?The 1-year HPR for the second stock is____%. The stock that will provide the better annualized holding period return is_____.A. Stock 1 B. Stock 2
Answer:
The 1-year HPR for the second stock is 12.84%. The stock that will provide the better annualized holding period return is Stock 1.
Explanation:
For First stock
Total dividend from first stock = Dividend per share * Number quarters = $0.32 * 2 = $0.64
HPR of first stock = (Total dividend from first stock + (Selling price after six months - Initial selling price per share)) / Initial selling price = ($0.64 + ($31.72 - $27.85)) / $27.85 = 0.1619, or 16.19%
Annualized holding period return of first stock = HPR of first stock * Number 6 months in a year = 16.19% * 2 = 32.38%
For Second stock
Total dividend from second stock = Dividend per share * Number quarters = $0.67 * 4 = $2.68
Since you expect to sell the stock in one year, we have:
Annualized holding period return of second stock = The 1-year HPR for the second stock = (Total dividend from second stock + (Selling price after six months - Initial selling price per share)) / Initial selling price = ($2.68+ ($36.79 - $34.98)) / $34.98 = 0.1284, or 12.84%
Since the Annualized holding period return of first stock of 32.38% is higher than the Annualized holding period return of second stock of 12.84%. the first stock will provide the better annualized holding period return.
The 1-year HPR for the second stock is 12.84%. The stock that will provide the better annualized holding period return is Stock 1.
A company that sells multiple types of products has a selling price per composite unit of $150, variable cost per composite unit of $50 and total fixed costs of $25,000. The contribution margin per composite unit is $ .
Answer:
See below
Explanation:
With regards to the above information, the contribution margin is computed as seen below.
Contribution margin per composite unit = Selling price per composite unit - Variable cost per composite unit
= $150 - $50
= $100
Hence, the contribution margin per composite unit is $100
Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was $1,300,000. According to independent appraisals, the fair values were $630,000 (building A) and $280,000 (building B) for the buildings and $490,000 for the land. Required: Determine the initial valuation of the buildings and the land.
Answer:
Pinewood Company
Initial valuation of the buildings and the land are:
Building A = $585,000
Building B = $260,000
Land = $455,000
Explanation:
a) Data and Calculations:
Purchase price of buildings and land = $1,300,000
Fair values of:
Building A = $630,000
Building B = $280,000
Land = $490,000
Total fair value = $1,400,000
Initial valuation of the buildings and the land are:
Building A = $630,000/$1,400,000 * $1,300,000 = $585,000
Building B = $280,000/$1,400,000 * $1,300,000 = $260,000
Land = $490,000/$1,400,000 * $1,300,000 = $455,000
Total fair value = $1,300,000
When a market is in equilibrium, the: multiple choice 1 quantity demanded equals the price. quantity demanded equals the quantity supplied at the market price. quantity demanded equals the quantity supplied and they both equal the price. quantity supplied equals the price. The market for cell phones reaches equilibrium because cell phone sellers have an incentive: multiple choice 2 to decrease quantity and so do cell phone consumers, so the price goes to to equilibrium. for prices to rise and some cell phone consumers will not buy at higher prices, driving the price to equilibrium. to increase quantity and so do cell phone consumers, so the price goes to to equilibrium. for prices to fall and some cell phone consumers only buy at higher prices, driving the price to equilibrium.
ANSWER:
2 Batteries
Explanation:
Which of the following control activities should be taken to reduce the risk of incorrect processing in a newly installed computerized accounting system? Multiple Choice Segregation of duties. Ensure proper authorization of transactions. Adequately safeguard assets. Independently verify the transactions.
Answer: Independently verify the transactions.
Explanation:
As the computerized accounting system is new, there is a certain warranted level of distrust in it which will only go away after the system consistently performs well.
Until such a time, it is important that every transaction that is processed by the system is independently verified so as to see if the system processed the transaction well. Only after satisfactory results over a period of time will the system become trusted.
Suppose Skyler invests in an annuity that pays 3.2% annual interest, compounded monthly. If she contributes $155 every month for 10 years, how much interest would she earn during that time
Answer: $3,286.47
Explanation:
Find the future value of the annuity after 10 years.
Number of periods = 10 * 12 months = 120 months
Interest = 3.2% / 12 = 3.2/12%
Future value of annuity = Annuity * ( (1 + rate)^ number of periods- 1) / rate
= 155 * ( ( 1 + 3.2%/12) ¹²⁰- 1) / 3.2%/12
= $21,886.47
The find the amount that the money would have come to without being invested:
= 155 * 120 months
= $18,600
Interest is:
= 21,886.47 - 18,600
= $3,286.47
What percentage of authorized shares was issued by Coca-Cola at December 31, 2015, and by PepsiCo at December 26, 2015
Answer:
December 26
Explanation:
Because Pepsi Co is buy
Timken roller bearing is a manufacturer of seamless tubes for drill bit collars. Company is planning to add larger capacity robotic arms to one of its assembly lines 3 years from now. If it is done now, the cost of the equipment is $2.4 million. Assume that the company's real MARR is 15% per year and the inflation rate is 2.8% per year. Determine the equivalent amount the company can spend 3 years from now in then-current dollars.
a. $4,943,200.
b. $2,943,200.
c. $3,943,200.
d. unknown.
Answer:
the equivalent amount the company can spend 3 years from now in then-current dollars is $3,943,200
Explanation:
The computation of the equivalent amount the company can spend 3 years from now in then-current dollars is shown below:
= $2,400,000 × (1 + 17.8%)^3
= $2,400,000 × 1.63942
= $3,943,200
Hence, the equivalent amount the company can spend 3 years from now in then-current dollars is $3,943,200
Which of the following occurs when a party threatens to file a legitimate (in other words, a non-frivolous) civil lawsuit unless another party gives consent to the terms of a contract?
a. Duress
b. Undue influence
c. Durable fraud
d. Criminal influence
e. None of these choices are correct.
Answer: E. None of the above
Explanation:
Duress occurs when there's threat by a party to file a criminal lawsuit unless the terms of a contract is given consent.
Duress occurs when a party was being forced into an agreement due to the wrongful act of another party. An example of this is when a party threatens to file a frivolous civil lawsuit unless another party gives consent to the terms of the contract.
Based on the options given, the answer to this is none of the above.
Claire purchases a $125 suit on her credit card from a local clothing store in her hometown. When she takes it home, she realizes it is damaged. She tries to take the product back for a full refund or store credit, but the store refuses. In this situation, ____________________.
Answer: the store violate TILA
Explanation:
The Truth in Lending Act of 1968 refers to the federal law that's designed in order to promote how the consumer credit will be used as there should be disclosures regarding terms and cost.
The Act is vital in protecting the consumers from misleading practices and provides them with necessary information about the costs of credit. Based on the information given, the store violates TILA.
On April 30, 2019, Aggie Corporation purchased Smith Corporation 10%, 5-year bonds with a face value of $12,000 at par plus four months of accrued interest. Assume that on June 30, Aggie received interest on the Smith Corporation bonds. Required: Prepare the June 30 journal entries to record the receipt
Answer:
Date Account Title Debit Credit
April 30,2019 Held to Maturity investment $12,000
Interest receivable $400
Cash $12,400
Interest receivable:
4 months of accrued interest:
= 12,000 * 4/12 * 10%
= $400
Date Account Title Debit Credit
June 30,2019 Cash $600
Interest receivable $400
Interest revenue $200
Interest revenue
2 months have passed:
= 12,000 * 2/12 * 10%
= $200
Cavan Company prepared the following reconciliation between book income and taxable income for the current year ended December 31, year 1.
Pretax accounting income ...............................$1,000,000
Taxable income ...................................................(600,000)
Difference $ 400,000 Book-tax differences:
Interest on municipal income ...........................$ 100,000
Lower financial depreciation................................300,000
Total......................................................................$ 400,000
Cavan’s effective Federal and state income tax rate for year 1 is 30%. The depreciation difference will reverse equally over the next three years at enacted tax rates as follows.
Year Tax Rate Year 2 30% Year 3 25% Year 4 25%
In Cavan’s year 1 income statement, the deferred portion of its provision for income taxes should be: __________.
a. $120,000
b. $80,000
c. $100,000
d. $90,000
Answer:
b. $80,000
Explanation:
The computation of the deferred portion of its provision for income taxes should be given below:
= $300,000 ÷ 3 years
= $100,000
Now
= 30% of $100,000 + 25% of $100,000 + 25% of $100,000
= $30,000 + $25,000 + $25,000
= $80,000
Therefore the option b is correct
lannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $270. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Compute the current margin of safety in dollars for Flannigan Company
Answer:
$2,200,000
Explanation:
Margin of safety means by how much sales can fall before a firm starts making a loss.
Margin of safety = Current Sales - Break even sales
where,
Break even sales = Fixed Cost ÷ Contribution margin ratio
= $800,000 ÷ 0.40
= $2,000,000
therefore,
Margin of safety = $4,200,000 - $2,000,000
= $2,200,000
Classify the transaction as either an operating activity, an investing activity, a financing activity, or a noncash activity:
1. Common stock is sold for cash
2. Bonds payable are issued for cash at a discount
3. Interest on a short-term note receivable is collected
4. Merchandise is sold to customers for cash
5. Cash paid to purchase inventory
Answer:
1. financing activity
2. financing activity
3. investing activity
4. operating activity
5. operating activity
Explanation:
Operating Activities includes Firms activities in sale and purchase of Inventory.
Investing Activities shows cash resulting from acquiring and sale of assets as well as receipt of interest on the investments.
Financing Activities shows cash resulting from raising capital or debt and the repayment of debt.
For a particular maximization problem, the payoff for best decision alternative is $15.7 million while the payoff for one of the other alternatives is $12.9 million. The regret associated with the alternate decision would be
a. $ 2.8 million.
b. $ 28.6 million
c. $ .129 million
d. $ 15.7 million
Answer:
a. $ 2.8 million
Explanation:
Calculation to determine what The regret associated with the alternate decision would be
Using this formula
Regret associate=Payoff for best decision alternative - Payoff for one of the other alternatives
Let plug in the formula
Regret associate= $15.7million - $12.9million
Regret associate= $2.8million
Therefore The regret associated with the alternate decision is $2.8million.
The sources of economic growth are _______. A. work hours growth and labor productivity growth B. democracy and labor productivity growth C. job experience and low inflation D. work hours growth and a stable government
Answer:
A. work hours growth and labor productivity growth
Explanation:
An economy is a function of how money, means of production and resources (raw materials) are carefully used to facilitate the demands and supply of goods and services to meet the unending needs or requirements of the consumers.
Hence, a region's or country's economy is largely dependent on how resources are being allocated and utilized, how many goods and services are to be produced, what should be produced, for whom they are to be produced for and how much money are to be spent by the consumers to acquire these goods and services.
Basically, there are four (4) main types of economy and these are;
I. Mixed economy.
II. Free market economy.
III. Traditional economy.
IV. Command economy.
Generally, the sources of economic growth of a country are work hours growth and labor productivity growth.
Labor (working) is simply the human capital or workers who are saddled with the responsibility of overseeing and managing all the aspects of production.
Asteria earned a $27,000 salary as an employee in 2020. How much should her employer have withheld from her paycheck for FICA taxes
Answer:
$2,070
Explanation:
Calculation to determine How much should her employer have withheld from her paycheck for FICA taxes
Social security tax 6.2%
Medicare tax which is 1.45%
Social security tax = $27,000 x 6.2%
Social security tax = $1,674
Medicare tax = $27,000 x 1.45%
Medicare tax =$391.5
FICA taxes Paycheck withheld= - $1,674 + $391.5
FICA taxes Paycheck withheld=$2,065.5
FICA taxes Paycheck withheld=$2,070 (Approximately)
Therefore How much should her employer have withheld from her paycheck for FICA taxes will be $2,070
Required: Mr. Jones, eager to please the board of directors, requests you, as the newly appointed management accountant, to prepare appropriate statements highlighting the following: a) The standard production cost per Wallop (3) b) A detailed reconciliation statement of the standard gross profit with the actual gross profit for the month of May. The reconciliation statement should show all possible variances in as much detail as possible. Note: Where applicable, clearly label your answer as favourable (F), or unfavourable (U). Failure to do so will cause you to forfeit
Answer:
I don't understand what you wrote
Explanation:
please reply sir
Mauro Products distributes a single product, a woven basket whose selling price is $19 per unit and whose variable expense is $15 per unit. The company’s monthly fixed expense is $12,000. Required: 1. Calculate the company’s break-even point in unit sales. 2. Calculate the company’s break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.)
Answer:
Results are below.
Explanation:
Giving the following information:
Selling price= $19
Unitary variable cost= $15
Fixed costs= $12,000
To calculate the break-even point in units and dollars, we need to use the following formulas:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 12,000 / 4
Break-even point in units= 3,000
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 12,000 / (4/19)
Break-even point (dollars)= $57,000
Now, the fixed costs are $12,600:
Break-even point in units= 12,600 / 4
Break-even point in units= 3,150
Break-even point (dollars)= 12,600 / (4/19)
Break-even point (dollars)= $59,850
n investment project has annual cash inflows of $4,000, $4,900, $6,100, and $5,300, for the next four years, respectively. The discount rate is 13 percent. a. What is the discounted payback period for these cash flows if the initial cost is $6,700
Answer:
the answer is 11,000
Explanation:
True or False: With a minimum wage of $8.70, unemployment of unskilled workers is lower with the tax credit versus without it.
Answer: True
Explanation:
Generally speaking, a tax credit would bring about a lower unemployment rate for unskilled labor as opposed to a situation where there is no tax credit.
A tax credit would reduce the amount of taxes that a company is to pay which would leave them with more income to reinvest into the business. This reinvestment will lead to the business having a higher production capacity such that it requires more workers so they will hire more workers, both unskilled and skilled thereby reducing the unemployment rate for both.
brooks is babysitting this summer while she is home from college. she puts the money in the bank every week. this illustrates one of the advantages of money over bartering, which is
Answer:
it can be stored overtime
Explanation:
A manufacturing shop is designed to operate most efficiently at an output of 950 units per day. In the past month the plant produced 750 units. What was their capacity utilization rate last month? (Round your answer to 1 decimal place.) Capacity utilization rate %
Answer:
78.95%
Explanation:
Capacity utilization rate = Capacity used / Best operating level
Capacity utilization rate = 750 units / 950 units
Capacity utilization rate = 0.789473684
Capacity utilization rate = 78.95%
So, their capacity utilization rate last month is 78.95%
A $1,000 par value bond pays interest of $35 each quarter and will mature in 10 years. If your simple annual required rate of return is 12 percent with quarterly compounding, how much should you be willing to pay for this bond
Answer:
the present value is $1,115.57
Explanation:
the computation of the present value is shown below:
Given that
Future value be $1,000
RATE is 12% ÷ 4 = 3%
NPER is 10 × 4 = 40
PMT is $35
The formula is shown below:
=-PV(RATE,NPER,PMT,FV,TYPE)
= $1,115.57
Hence, the present value is $1,115.57
the company's revenue for the month totaled $950,000 from credit sales, and its cost of goods sold for the month is $540,000. Prepare summary journal entries dated October 31 to record its October production
Answer:
Date Account Title Debit Credit
Oct. 31 Accounts Receivable $950,000
Sales $950,000
Date Account Title Debit Credit
Oct. 31 Cost of goods sold $540,000
Finished goods inventory $540,000
Last year Ace charged $1,469,867 Depreciation on the Income Statement of Andrews. If early this year Ace purchased a new depreciable asset, the effect on Andrews's financial statements would be (all other items remaining equal):
Answer:
Increase Net Cash from operations
Explanation:
Note that the purchase of another depreciable asset means that annual depreciation expense would increase( increase on the old asset which is $1,469,867 plus the depreciation on newly acquired asset), hence, assuming that net income remains the same as last year(the meaning of all other items remaining equal), when the amount of increased depreciation is added back to the net income in the cash flow statement, the amount of net cash flow from operations would increase compared to last year.
In essence, the correct option in this case is that there would be an increase in net cash from operations not just an increase in amount of asset in the balance sheet
