Statement of retained earnings.  Use the data from the following financial statements in the popup​ window,
LOADING...
Partial Income Statement Year Ending 2014
Sales revenue
$350,200
Cost of goods sold
$141,800
Fixed costs
$42,900
Selling, general, and administrative expenses
$28,000
Depreciation
$46,200
Partial Balance Sheet 12/31/2013
ASSETS
LIABILITIES
Cash
$16,000
Notes payable
$14,000
Accounts receivable
$27,800
Accounts payable
$19,100
Inventories
$48,000
Long-term debt
$189,900
Fixed assets
$368,000
OWNERS' EQUITY
Accumulated depreciation (-)
$140,200
Retained earnings
Intangible assets
$82,000
Common stock
$131,900
Partial Balance Sheet 12/31/2014
ASSETS
LIABILITIES
Cash
$26,200
Notes payable
$11,900
Accounts receivable
$18,800
Accounts payable
$24,100
Inventories
$53,200
Long-term debt
$161,800
Fixed assets
$447,800
OWNERS' EQUITY
Accumulated depreciation (-)
Retained earnings
Intangible assets
$82,200
Common stock
$181,900
. The company paid interest expense of
$ 18 comma 700$18,700
for 2014 and had an overall tax rate of
40 %40%
for 2014. Complete the statement of retained earnings for​2014, and determine the dividends paid last year.
The distributed earnings is
​$nothing.
​(Round to the nearest​ dollar.)
Complete the statement of retained​ earnings:  ​(Round to the nearest​ dollar.)
Statement of Retained Earnings
Year Ending December 31, 2014
Beginning balance
$
Add net income
$
Subtract dividends
$
Ending balance
$

Answers

Answer 1
beginning balance: $350,200
add net income: $467,987
subtract dividend: $110,109
ending balance: ^^^^^^^
$110,109 is your answer

Related Questions

In 2017​, Lippart ​& Sons, a small​ environmental-testing firm, performed 11,000 radon tests for $330 each and 15,000 lead tests for $240 each. Because newer homes are being built with​ lead-free pipes,​ lead-testing volume is expected to decrease by 15​% next year.​ However, awareness of​ radon-related health hazards is expected to result in a 7​% increase in​ radon-test volume each year in the near future. Jim Lippart feels that if he lowers his price for lead testing to $220 per​ test, he will have to face only a 4​% decline in​ lead-test sales in 2018.Required:a. Prepare a 2018 sales budget for Hart & Sons assuming that Hart holds prices at 2017 levels. b. Prepare a 2018 sales budget for Hart & Sons assuming that Hart lowers the price of a lead test to $200.

Answers

Answer:

1.Radon Tests $3,884,100

Lead Tests $3,060,000

2.Radon Tests $3,884,100

Lead Tests $2,880,000

Explanation:

1.Preparation for 2018 sales budget for Hart & Sons

Lippart ​& Sons, 2017 Volume At 2017; Selling Prices

Radon Tests 11,000 $330

Lead Tests 15,000 $240

2018 Expected Change in Volume

Radon Tests 11,000 +7%

Lead Tests 15,000 -15%

Expected 2018 Volume

Radon Tests 11,000 *7% =$770

(11,000 +770)=$11,770

Lead Tests 15,000 *15%=$2,250

15,000-2,250=$12,750

Lippart ​& Sons Sales Budget For the Year Ended December 31,2018

Selling Price ×Units Sold = Total Revenues

Radon Tests 11,770*330=$3,884,100

Lead Tests 12,750*240=$3,060,000

2.1.Preparation for 2018 sales budget for Hart & Sons

Lippart ​& Sons, 2017 Volume At 2017; Selling Prices

Radon Tests 11,000 $330

Lead Tests 15,000 $200

2018 Expected Change in Volume

Radon Tests 11,000 +7%

Lead Tests 15,000 -4%

Expected 2018 Volume

Radon Tests 11,000 *7% =$770

(11,000 +770)=$11,770

Lead Tests 15,000 *4%=$600

15,000-600=$14,400

Lippart ​& Sons Sales Budget For the Year Ended December 31,2018

Selling Price ×Units Sold = Total Revenues

Radon Tests 11,770*330=$3,884,100

Lead Tests 14,400*200=$2,880,000

A company's normal operating activity is to produce 500 units per month. During its first two months of operaetion, it produced 100 units per month. Following a great article about the product, product spiked to 1,000 units per month, but the spike only lasted for one month. Which of the following best approximates the company's relevant range?
a. 450-510 units.
b. 100-1,000 units.
c. 500-1,000 units.
d. 100, 500, or 1,000 units.

Answers

Answer:

a. 450-510

Explanation:

450-510 units which best approximates the company's relevant range. The correct option is A.

What is an operating activity?

All of a company's continuing marketing efforts for its goods and services are referred to as operating activities. Non-operating activities are one-time occurrences that could have an impact on the company's regular, core business but also on sales, costs, or cash flow.

Given,

Normal Producing Units = 500 units per month

Last month produced = 1000 units

Production for first 2 months = 100 units per month

Calculate the range of company produce units =?

Total units produce = 2 x 100 + 9 x 500 + 1 x 1000/12

Total units produce = 5700/12  = 475 units

The relevant range for the company producing the units is 450-510 units because 475 units is lies between in such range.

Thus, the ideal selection is option A.

Learn more about operating activity here:

https://brainly.com/question/14122060

#SPJ2

Assume that investors have recently become more risk averse, so the market risk premium has increased. Also, assume that the risk-free rate and expected inflation have not changed. Which of the following is most likely to occur?a. The required rate of return will decline for stocks whose betas are less than 1.0 b. The required rate of return on the market, rm, will not change as a result of these changes c. The required rate of return for each individual stock in the market will increase by an amount equal to the increase in the market risk d. The required rate of return on a riskless bond will decline. e. The required rate of return for an average stock will increase by an amount equal to the increase in the market risk premium.

Answers

Answer: e. The required rate of return for an average stock will increase by an amount equal to the increase in the market risk premium.

Explanation:

The market risk premium is the interest rate over the risk-free rate that investors will be compensated with for taking on the risk. Returns consist of both the risk-free rate and a premium charged for risk.

If investors become more risk averse, they will have to be compensated for what they view as riskier investments by increasing the premium being given to them.

Should this happen, the return that they will require will therefore increase by the same amount that the premium has increased.

Tadpole Learning Systems Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March $165,800 April 152,500 May 138,800 Depreciation, insurance, and property taxes represent $35,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in November. 59% of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month.Required:Prepare a schedule indicating cash payments for selling and administrative expenses for March, April, and May.

Answers

Answer:

Tadpole Learning Systems Inc.

Schedule of Cash Payments for Selling and Administrative Expenses:

                                                        March           April          May

59% paid in the month                 $77,172     $69,325     $61,242

Balance in the following month                     $53,628     $48,175

Total                                             $77,172    $122,953   $109,417

Explanation:

a) Data and Calculations:

                                                        March           April          May

Selling and admin. expenses      $165,800   $152,500   $138,800

Depreciation, insurance, and

 property taxes                              35,000       35,000       35,000

Remainder                                  $130,800     $117,500   $103,800

59% paid in the month                 $77,172     $69,325     $61,242

Balance in the following month                     $53,628     $48,175

Total                                              $77,172    $122,953   $109,417

On November 1, Alan Company signed a 120-day, 8% note payable, with a face value of $9,000. What is the maturity value (principal plus interest) of the note on March 1

Answers

Answer:

$9,240

Explanation:

Computation of Maturity Value of the note

First step is to find the interest amount using this formula

Interest amount=(Face value *Note payable)*Numbers of days to signed/Numbers of days in a year

Let plug in the formula

Interest Amount = ($9,000*8%)*120/365

Interest amount = $720 * 120 / 360

Interest amount=720*0.33333

$240

Next step is to calculate for the Maturity value using this formula

Maturity Value = Face value +Interest amount

Let plug in the formula

Maturity value =$9,000 + $240

Maturity value = $9,240

Therefore the maturity value of the note on March 1 will be $9,240

In the BCG Growth Share Matrix, the suggested strategy for Stars is to ________.


A. milk them to finance other businesses

B. invest large sums to gain a good market share

C. maintain position and after the market growth slows use the business to provide cash flow

D. not invest in them and to shift cash flow to other businesses

Answers

Answer:

C. maintain position and after the market growth slows use the business to provide cash flow

Explanation:

Stars in the BCG Growth Share Matrix refer to the goods that have a big market share and bring more revenue to the company but they also require to invest a lot of money. Because of that, companies try to keep their place as long as possible but when the market slows down, they take the cash flow from the product to increase their profits. According to that, the answer is that in the BCG Growth Share Matrix, the suggested strategy for Stars is to maintain position and after the market growth slows use the business to provide cash flow.

The other options are not right because milk them to finance other businesses and not invest in them and to shift cash flow to other businesses is not a suggested strategy for starts because they can provide a lot of money. Also, invest large sums to gain a good market share is not right as stars are not always able to generate a positive cash flow and you can end up losing a big amount of money.

The comparative balance sheet of Nathan Company appears below: NATHAN COMPANY Comparative Balance Sheet December 31, Assets 2017 2016 Current assets $420 $333 Plant assets 780 567 Total assets $1,200 $900 Liabilities and stockholders' equity Current liabilities $168 $144 Long-term debt 300 162 Common stock 432 306 Retained earnings 300 288 Total liabilities and stockholders' equity $1,200 $900 Using horizontal analysis, show the percentage change for each balance sheet item using 2016 as a base year. NATHAN COMPANY Comparative Balance Sheet December 31, Assets 2017 2016 Percentage change Current assets $420 $333 % Plant assets 780 567 % Total assets $1,200 $900 % Liabilities and stockholders' equity Current liabilities $168 $144 % Long-term debt 300 162 % Common stock 432 306 % Retained earnings 300 288 % Total liabilities and stockholders' equity $1,200 $900 % Using vertical analysis, prepare a common size comparative balance sheet. (Round percentages to 0 decimal places, e.g. 12.) NATHAN COMPANY Comparative Balance Sheet December 31 2017 2016 Assets Amount Percentage Amount Percentage Current assets $420 % $333 % Plant assets 780 % 567 % Total assets $1,200 % $900 % Liabilities and stockholders' equity Current liabilities $168 % $144 % Long-term debt 300 % 162 % Common stock 432 % 306 % Retained earnings 300 % 288 % Total liabilities and stockholders' equity $1,200 % $900 %

Answers

Answer:

                                    NATHAN COMPANY

                              Comparative Balance Sheet

                              For the years 2017 and 2016

                                              2017            2018          Change       Change

                                                                                     value           in %

Assets:

Current assets                      $420           $333            $87            26.13%

Plant assets                           $780           $567          $213            37.57%

Total assets                        $1,200           $900         $300            33.33%

Liabilities and stockholders' equity

Current liabilities                   $168            $144            $24             16.67%

Long-term debt                    $300            $162           $138            85.19%

Common stock                     $432           $306           $126             41.18%

Retained earnings                $300           $288             $12              4.17%

Total liabilities and equity  $1,200          $900          $300           33.33%

If an economist wishes to determine whether there is evidence that average family incomes in a community exceeds $25,000:_______

a. either a one-tailed or two-tailed test could be used with equivalent results.
b. a one-tailed test should be utilized.
c. a two-tailed test should be utilized.
d. None of the above.

Answers

Answer: one tailed test should be utilized

Explanation:

From the question, we are informed that an economist wishes to determine whether there is evidence that average family incomes in a community exceeds $25,000.

A one tailed test should be utilized because the region of rejection will just have to be based on one side.

The practice of changing prices for products in real time in response to supply and demand conditions is referred to as

Answers

Answer:

Dynamic pricing

Explanation:

In simple words, Dynamic pricing, often alluded to as rising rates, vibrant pricing as well as period-based pricing, relates to the pricing technique under which companies set variable prices for goods or commodities on the basis of existing consumer demands. A main benefit of competitive pricing seems to be the opportunity to increase the income with each consumer.

Dinklage Corp. has 7 million shares of common stock outstanding. The current share price is $68, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $70 million, a coupon rate of 6 percent, and sells for 97 percent of par. The second issue has a face value of $40 million, a coupon rate of 6.5 percent, and sells for 108 percent of par. The first issue matures in 21 years, the second in 6 years. Suppose the most recent dividend was $3.25 and the dividend growth rate is 5 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 21 percent. What is the company’s WACC?

Answers

Answer:

WACC = 8.98%

Explanation:

total value of equity = $68 x 7,000,000 = $476,000,000

cost of equity:

$68 = $3.4125 / (rrr - 5%)

rrr - 5% = 5.02%

rrr = 10.02%

total value of debt:

$70 million x 0.97 = $67,900,000

YTM = {60 + [(1,000 - 970)/21]} / [(1,000 + 970)/2] = 61.43 / 985 = 6.24%

$40 million x 1.08 = $43,200,000

YTM = {65 + [(1,000 - 1,080)/6]} / [(1,000 + 1,080)/2] = 51.67 / 1,040 = 4.97%

weighted cost of debt = ($67,900,000 / $111,100,000 x 6.24%) + ($43,200,000 / $111,100,000 x 4.97%) = 3.81% + 1.93% = 5.74%

total value of the firm = $476,000,000 + $67,900,000 + $43,200,000 = $587,100,000

equity weight = $476,000,000 / $587,100,000 = 0.81076

debt weight = 1 - 0.81076 =  0.18924

WACC = (0.81076 x 10.02%) + (0.18924 x 5.74% x 0.79) = 8.12% + 0.86 = 8.98%

2. Using semiannual compounding, what is the value to you of a 9% coupon bond with a par value of $10,000 that matures in 10 years if you require a 7% return

Answers

Answer:

The Value of the Bond, PV is $10.962.65

Explanation:

The Value of the Bond (PV) can be determined as follows :

PMT = ($10,000 × 9%) ÷ 2 = $450

P/YR = 2

N = 10

Required Return (YTM) = 7 %

FV = $10,000

PV = ?

Using a Financial Calculator, the Value of the Bond, PV is $10.962.65

If you were given a personality test as part of an employment application process, would you answer the questions honestly or would you attempt to answer the questions based upon your image of "correct" way to answer? what implications does your response has for the validity of personality testing?

Answers

Explanation:

Personality tests are sold on the promise that they are valid (they measure what they say they will measure) and reliable (they produce consistent results). “Many studies over the years have proven the validity of the MBTI instrument,” says the Myers & Briggs FoundationPsychologists seek to measure personality through a number of methods, the most common of which are objective tests and projective measures.Objective tests, such as self-report measures, rely on an individual's personal responses and are relatively free of rater bias.

Hope it will help you.

I would answer some questions honestly but if there are some questions which i can't tell the truth i will tell some lies. because if u really like this job and don't want to loose it, it's ok to give wrong answers just for once! That's my opinion. :p. But be careful u might get in trouble if they find out ur lying!

What describes minerals that are deemed real property, such as gold and silver, until they are removed from the earth and become personal property?
A. Mineral rights.
B. Nutrients.
C. Synthetics.
D. Solid minerale.

Answers

Answer:

The correct answer is D

Explanation:

Solid minerals contained in the land

(Coal, iron, ore, gold or silver)

Hope this helps! (づ ̄3 ̄)づ╭❤~

Minerals known as real property such as gold and silver are known as Solid minerale before they later become personal property.

What is a Solid minerale?

These are mineral that is natural occurring in a solid and inorganic state and are representable by a chemical formula.

An example of Solid minerale includes Talc, Gold, Clay, Lithium, Kyanite, Wolframite, Gemstones etc

Therefore, the Option D is correct.

Read more about Solid minerale

brainly.com/question/1869502

a regional manager for a pet supply chain, is responsible for keeping his employees updated on changes in diversity policies. Jared plays the role of a _______ in managing diversity. disseminator leader liaison figurehead communicator

Answers

Answer: disseminator

Explanation:

A disseminator is a person who spread news to others.A leader is a person to lead a group.Liaison is a cooperation that keeps a close working relationship between the people.figurehead - a leader without any power.communicator- person who communicates with others.

Here,  regional manager acts like a disseminator who keeps his employees updated on changes in diversity policies.

Hence, the correct answer is "disseminator ".

According to the statement as per the question, Jared plays the role of a DISSEMINATOR in managing diversity.

What is Disseminator?

When A disseminator in an organization's setting, is known as an individual who passes or communicates vital or useful information to colleagues and also teammates.

A disseminator may be one who spread the news to others.

A leader may be a person to guide a bunch.

Liaison could be a cooperation that keeps an in-depth working relationship between the people.

Figurehead - a frontrunner with no power.

Communicator- one that communicates with others.

Although, the region of the manager acts as sort of a disseminator who keeps his employees updated on changes in diversity policies.

Therefore, the right answer is "disseminator ".

Find out more information about Disseminator here:

https://brainly.com/question/24810311

You sold a car and accepted a note with the following cash flow stream as your payment. What was the effective price you received for the car assuming an interest rate of 6.0%?
A. Year 0-$0.
B. Year 1-$1,000.
C. Year 2-$2,000.
D. Year 3-$2,000 and Year 4-$2,000.

Answers

Answer:

year two

Explanation:because less time still you'll have 2,000

Turnbull Co. has a target capital structure of 58% debt, 6% preferred stock, and 36% common equity. It has a before-tax cost of debt of 8.2%, and its cost of preferred stock is 9.3%. If Turnbull can raise all of its equity capital from retained earnings, its cost of common equity will be 12.4%. However, if it is necessary to raise new common equity, it will carry a cost of 14.2%. If its current tax rate is 40%, how much higher will Turnbull’s weighted average cost of capital (WACC) be if it has to raise additional common equity capital by issuing new common stock instead of raising the funds through retained earnings? (Note: Round your intermediate calculations to two decimal places.)

Answers

Answer:

Turnbull's weighted average cost of capital will be higher by 0.65% if it has to raise additional common equity capital.

Explanation:

By combining the WACC formula and retained earnings cost of capital,we will arrive at;

WACC = Debt W × after tax cost of debt + Preferred stock weight × cost of capital + Equity W × Cost of capital

= 58% × 4.92% + 6% × 9.3% + 36% × 12.4%

= 2.85% + 0.56% + 4.46%

= 7.87%

Also, using the same WACC formula and using common equity cost of capital, , we will arrive at the below;

WACC = Debt W × after tax cost of debt + preferred stock weight × cost of capital + Equity W × cost of capital

= 58% × 4.92% + 6% × 9.3% + 36% × 14.2%

= 2.85% + 0.56% + 5.11%

= 8.52%

Therefore, increase cost using common equity over retained earnings is [ 8.52% - 7.87%]

= 0.65%

N.B we arrived at 4.92% for after tax by;

Pre tax 8.2%

Current tax rate 40%

= Pre tax × ( 1 - cost of debt)

= 8.2% × ( 1 - 40%)

= 8.2% × 0.6%

= 4.92%

If the range of feasibility indicates that the original amount of a resource, which was 20, can increase by 5, then the amount of the resource can increase to 25.

a. True
b. False

Answers

Answer: True

Explanation:

The range of feasibility is used to measure values that are on the right-hand-side(objective function) that won't alter dual prices.

When the range of feasibility indicates that the original amount of a resource, which was 20, can increase by 5, then the amount of the resource can increase to (20 + 5) = 25

Therefore, the option is true

For the following transaction, answer the questions that follow in accordance with the rules of journalizing and the double-entry accounting system:

Transaction:
Drawing by owner amounted to $1,500.

Required:
a. Which two accounts are affected ?
b. What kind of accounts are they?
c. Do the account balances increase or decrease?
d. Do we debit or credit the accounts?

Answers

Answer and Explanation:

Given that

Drawings by owner for $1,500

The journal entry is

Drawing Dr $1,500

       To cash $1,500

(being the amount withdrawn is recorded)

a. Here the two accounts are affected one is drawings account and the second one is the cash account

b. The drawing is the equity account while the cash is the asset account

c. The drawing account is increased and the cash account is decreased

d. The drawing account is debited and cash account is credited

Crane Sales Company uses the retail inventory method to value its merchandise inventory. The following information is available for the current year:
Cost Retail
Beginning inventory $ 30,000 $ 45,000
Purchases 190,000 260,000
Freight-in 2,500 —
Net markups — 8,500
Net markdowns — 10,000
Employee discounts — 1,000
Sales revenue — 205,000
If the ending inventory is to be valued at the lower-of-cost-or-market, what is the cost-to-retail ratio?
a) $220,000 ÷ $315,000
b) $222,500 ÷ $305,000
c) $222,500 ÷ $313,500
d) $222,500 ÷ $303,500

Answers

Answer:

C. $222,500 ÷ $313,500

Explanation:

Calculation for cost to retail ratio

COST

Beginning inventory $30,000

Add; Purchases $190,000

Add: Freight in $2,500

Cost $222,500

RETAIL

Beginning inventory $45,000

Add: Purchases $260,000

Add: Net mark ups $8,500

Retail $313,500

Therefore, the cost to retail ratio will be

$222,500 $313,500

The Sprint vs. Verizon ads that compare the features and pricing of the two networks are examples of competitive advertising. True False

Answers

Answer:

True

Explanation:

They are trying to win over customers by comparing each others features in a competition

Competitive advertising is demonstrated by the Sprint vs. Verizon adverts, which compare the functionality and pricing of the two networks. So, it is a true statement.

What is competitive advertising?

Competitive advertising is the act of showcasing or promoting one's product in comparison to the product of another company.

This form of marketing can be used to target customers who are devoted to the other brand, prompting them to reassess their purchasing patterns.

The three types of competitive advertising are:

ComparativeReminderReinforcement

For more information about competitive advertising, refer below

https://brainly.com/question/3463451

In Rooney Company, direct labor is $18 per hour. The company expects to operate at 12,000 direct labor hours each month. In January 2017, direct labor totaling $222,400 is incurred in working 12,600 hours.
Prepare a flexible budget report.

Answers

Answer:

    Flexible budget Report for Rooney Company                              

                                       Flexed budget            Actual      Variance

Labour hours                  12,600                      12,600

Labour cost($)                  226,800                     222,400    4,400   Favorable

Explanation:

A flexible budget is that which is prepared to reflect the actual activity level achieved.  

It is useful for a control purpose; to compare the actual result to the expected performance. The expected performance is the the flexible budget which is a revised master budget.  

Also it uses the assumptions of the static budget like standard costs and prices.

Flexed budget for labour = standard hour × actual labour cost

                                          = $18×  12,600   = $ 226,800  

    Flexible budget Report for Rooney Company                              

                                       Flexed budget            Actual      Variance

Labour hours                  12,600                      12,600

Labour cost($)                  226,800                     222,400    4,400   Favorable

 

A bond pays a semiannual coupon, and the last coupon was paid 61 days ago. If the annual coupon payment is $75, what is the accrued interest

Answers

Answer:

$12.57

Explanation:

Calculation for the accrued interest

Using this formula

Accrued interest =(Annual coupon payment/2) * (The numbers of days the last coupon was paid/182)

Note that Semiannual means the that annual coupon payment happened twice in a year which is from January to June and from July to December and Secondly let assumed that we have $182 days in the 6 months period.

Let plug in the formula

Accrued interest=(75/2) × (61/182)

Accrued interest=37.5*0.33516

Accrued interest=$12.57

Therefore the Accrued interest will be $12.57

The gap between the actual quantity produced by a monopolistically competitive firm and the optimal quantity in a competitive market is known as

Answers

Answer:

The correct answer is Excess Capacity.  

Explanation:

A monopolistically competitive firm is one that produces and or offers products or services in a market with similar, but not exact or perfect substitutes. A real-world example of a monopolistic competitive firm is Burger King. It competes with McDonald. Both companies sell burger and other types of fast food. However, are not perfect substitutes as there are slight differences, especially in shape and in taste, in the foods they offer.

When there is a  gap between the quantity produced and the scale of output that a business or firm has been designed for, Excess Capacity is said to exist. In other words, the actual quantity produced is below what is optimal for the economy.

Cheers!

The cash flows associated with each expansion site are summarized below. The expansion is planned for 5 years, and the interest rate is 12% per year. Use the B/C method to determine which site, if any, is the most acceptable. The monetary unit is $ million.
Site A B C
Initial cost, $ 55 70 200
M&O Cost, $/year 3 4 6
Benefits, $/year 20 29 55
Disbenefits, $/year 0.5 2 2.1
A. Site A
B. Site C
C. Site B
D. None

Answers

Answer:

C. Site B

Explanation:

A benefit-cost (B/C) method is a decision making techi=niques that uses benefit-cost ratio (BCR) to give a summary of overall relationship between the relative benefits and costs and a project being proposed.

To calculated the present values (PV) of Maintenance and Operations (M&O) Cost, Benefits and Disbenefits, we use cumulative discounting factor (CDF) for calculating the present value (PV) of an ordinary annuity as follows:

CDF = [{1 - [1 / (1 + r)]^n} / r] …………………………………. (1)

Where;

r = interest rate = 12%, or 0.12

n = number of years = 5

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

CDF = [{1 - [1 / (1 + 0.12)]^5} / 0.12] = 3.60

We can now calculate the B?C of each Site as follows as follows:

a. Calculation of B/C ratio of Site A

Initial cost = $55

PV of M&O Cost = M&O Cost per year * CDF = $3 * 3.60 = $10.80

PV of Benefits = Benefits per year * CDF =$20 * 3.60 = $72.00

PV of Disbenefits = Disbenefits per year * CDF = $0.5 * 3.60 = $1.80

PV of Total Cost = Initial cost + PV of M&O cost + PV of Disbenefits = $55 + $10.80 + $1.80 = $67.60

B/C ratio of Site A = PV of Benefits / PV of tota cost = $72.00 / $67.60 = 1.07

b. Calculation of B/C ratio of Site B

Initial cost = $70

PV of M&O Cost = M&O Cost per year * CDF = $4 * 3.60 = $14.40

PV of Benefits = Benefits per year * CDF =$29 * 3.60 = $104.40

PV of Disbenefits = Disbenefits per year * CDF = $2 * 3.60 = $7.20

PV of Total Cost = Initial cost + PV of M&O cost + PV of Disbenefits = $70 + $14.40 + $7.20 = $91.60

B/C ratio of Site A = PV of Benefits / PV of tota cost = $104.40 / $91.60 = 1.14

b. Calculation of B/C ratio of Site B

Initial cost = $200

PV of M&O Cost = M&O Cost per year * CDF = $6 * 3.60 = $21.60

PV of Benefits = Benefits per year * CDF =$55 * 3.60 = $198.00

PV of Disbenefits = Disbenefits per year * CDF = $2.1 * 3.60 = $7.56

PV of Total Cost = Initial cost + PV of M&O cost + PV of Disbenefits = $200 + $21.60 + $7.56 = $229.16

B/C ratio of Site A = PV of Benefits / PV of tota cost = $198.00 / $229.16 = 0.86

Conclusion

1. Since the B/C ratio of only Site A and Site B are greater than 1, both are acceptable.

2. But since Site B's B/C ratio of 1.14 is greater Site A's B/C ratio of 1.07, Site B is the most acceptable. Therefore, the correct option is C. Site B.

A customer buys 100 shares of ABC at $17 as the initial transaction in a new margin account. The customer must deposit:______

Answers

Answer:

$1,700

Explanation:

Although the minimum equity to open a long margin account is $2,000. However, this does not apply if the securities in the account are paid fully.

It will amount to potential loss if a customer is asked to deposit more than 100% when buying. Since the customer wants to buy 1,700 of stock, it means that 100% or $1,700 (100 shares × $17) must be deposited.

A Japan-based company, Sumo Gyms, Inc., issues a 35-year, semi-annual coupon bond, with a ¥300 million par value. The coupon rate is given as 5.90%, and the yield to maturity is 6.70. a. What is the value of the semi-annual coupon on the bond?

Answers

Answer:

per*

Explanation:

In a simple random sample of 800 people age 20 and over in a certain country, the proportion with a certain disease was found to be 0.165 (or 16.5%). Complete parts (a) through (c) below. a. What is the standard error of the estimate of the proportion of all people in the country age 20 and over with the disease? (Round to four decimal places as needed.) b. Find the margin of error, using a 95% confidence level, for estimating this proportion. m=______(round to three decimal places as? needed.)c. Report the 95% confidence interval for the proportion of all Americans age 20 and over with diabetes.

Answers

Answer and Explanation:

Please find attachment

I'm calculating standard error we used the formula standard deviation/√number of samples. Standard deviation is not known and so it was first calculated

Margin of error and confidence intervals were also calculated using their formulas

Key facts and assumptions concerning Kroger Company, at December 12, 2007, appear below. Using this information, answer the questions following.

Facts and Assumptions
Yield to maturity on long-term government bonds 4.54%
Yield to maturity on company long-term bonds 6.32%
Coupon rate on company long-term bonds 7.50%
Market price of risk, or risk premium 6.30%
Estimated company equity beta 1.05
Stock price per share $ 25.97
Number of shares outstanding 681.2 million
Book value of equity $ 4,965 million
Book value of interest-bearing debt $ 6,674 million
Tax rate 35.0%
a. Estimate Kroger's cost of equity capital.
b. Estimate Kroger's weighted-average cost of capital. Prepare a spreadsheet or table showing the relevant variables.

Answers

Answer:

a. 11.16 %

b. 7.56 %

Explanation:

Cost of equity capital is the return that is required by Common Stockholders.

This can be determined as follows :

1. Growth Model

Cost of equity = Recent dividend / Market Price of Share + Expected Growth Rate

or

2. Capital Asset Pricing Model (CAPM)

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

                       = 4.54% + 1.05 × 6.30%

                       = 11.16 %

WACC = Ke × (E/V) + Kd × (D/V) +Kp × (P/V)

Explanation and value of Variables

Ke = Cost of Equity

     = 11.16 %

E/V = Weight of Equity

      = $ 4,965 ÷ ( $ 4,965 + $ 6,674)

      = 42.66 %

Kd = Cost of Debt :

    = Interest × (1 - tax rate)

    = 7.50% × ( 1 - 0.35)

    = 4.875 or 4.88 %

D/V = Weight of Debt

      = $ 6,674 ÷ ( $ 4,965 + $ 6,674)

      = 57.34 %

Therefore,

WACC = 11.16 % × 42.66 % + 4.88 % × 57.34 %

           = 7.56 %

Consider two projects. The first project pays benefits of $85 today and nothing else. The second project pays nothing today, nothing one year from now, but $104 two years from now. a. Which project would be preferred if the discount rate were 0%? b. What if the rate increased to 10%? c. Find the Internal Rate of Return.

Answers

Answer:

Explanation:

a )

Discount rate is 0%

NPV of first project = 85

NPV of second project = 0 + 0 + 104 = 104

second project is preferrable .

b )

if discount rate is 10%

NPV of first project = 85

NPV of second project = 104 / 1.1²

= 85.95

Their NPV is almost the same so anyone can be preferred .

c ) IRR can not be calculated unless the cost of project or cash outflow is given .

The common stock of Eddie's Engines, Inc., sells for $37.13 a share. The stock is expected to pay a dividend of $3.10 per share next year. Eddie's has established a pattern of increasing their dividends by 5.2 percent annually and expects to continue doing so. What is the market rate of return on this stock?

Answers

Answer:

13.55%

Explanation:

The common stock of Eddies engines is sold at $37.13 per share

The stock is expected to make a payment of $3.10 per share next year

The growth rate is 5.2%

Therefore, the market rate of return on the stock can be calculated as follows

Market rate of return= Next dividend payment/stock price × growth rate

= $3.10/$37.13 + 5.2%

= 0.0835×100 + 5.2%

= 8.35%+5.2%

= 13.55%

Hence the market rate of return on this stock is 13.55%

Other Questions
In a five-minute oral report, compare and contrast the novel and film versions of To Kill a Mockingbird. Compare and contrast the ways in which related themes are treated differently in each medium with a particular focus on the theme of moral courage. Compare and contrast the effectiveness of each treatment the way various themes are treated in each media. Inventory at the end of April, 2008: 200 unitsExpected demand during April, 2008: 50 unitsProduction expected during April, 2008: 100 unitsWhat was the inventory at the end of March 2008? Look at the pattern below. step 1 with 1 square step 2 with 3 squares step 3 with 6 squares step 4 with 10 squares How many squares will be in the pattern in step 6 What are the major river and mountain chain of the northeast region of the united states called? Let u = , v = . Find u + v. (1 point) One end of a graphite rod is brought near a heat source. How does the other end of the rod eventually heat up? A. Directly from the heat source B. Vibrations from neighboring atoms C. Waves from the heat source D. Waves from neighboring atoms what are sex hormones?why are they named so? state their function. Lisa read 46 pages on Sunday, 15 pages on Monday, and 19 pages on Tuesday. Which of the following is closest to the mean number of pages she read over the three-day period? A. 19 pages B. 21 pages C. 27 pages D. 35 pages Show all work!! When the blood glucose concentration is low, the pancreas secretes glucagon to signal the liver to produce glucose and glucose-1-phosphate. Which metabolic steps are involved in this biosignaling pathway Lisa rides the train to work and always gets off at Stop A. One Saturday she has to go into town, and she rides the same train she takes to work. She is supposed to get off at Stop F, but she starts talking to her mother on the phone and then gets off at Stop A. What does this tell us about unconscious processing? Robert Yerkes, past president of the American Psychological Association, chaired a committee in which Terman and others served that developed verbal and non-verbal tests of the SATs.a. True b. False Drag the labels to the correct locations on the table. Each label can be used more than once.Match each function to all of the function types it belongs to.LinearQuadraticExponentialPolynomialf(x) = 2x + 3f(x) = x2 + 2x - 3f(x) = 3* - 2 Please help me.Make 6 dialogue sentences that containSo thatSuch thatUrgent!!! Find the density if the volume is 15 mL and the mass is 8.6 g. (5 pts)Find the volume if the density is 2.6 g/mL and the mass is 9.7 g.(5 pts)Find the mass if the density is 1.6 g/cm3 and the volume is 4.1 cm3 (5 pts)Find the density if the initial volume of water is 12.8 mL, the final volume is 24.6 mL and the mass of the object is 4.3 g. Make a drawing to show the water displacement using a graduated cylinder. (gdoc, gdraw) 1. What health resources are available at your home? List at least three. a) b) c) 2. In what circumstances would you use each resource at your home? a) b) c) 3. What health resources are available at your school? List at least three. a) b) c) 4. In what circumstances would you use each resource at your school? In the year 2050, what regions of the world would be most affected by global warming? Claire's daughter brings her in today after Claire fell at her home. Which assessments are indicated at this time? Equal currents of magnitude I travel into the page in wire M and out of the page in wire N. The direction of the magnetic field at point P which is at the same distance from both wires is Begin by reviewing the labels for the change in stockholders' equity and then enter the amounts for each situation.Three situations about Timmy Company's issuance of stock and declaration and payment of dividends during the year ended January 31, 2017. follow. Requirements. Begin by reviewing the labels for the change in stockholders' equity and then enter the amounts for each situation. Situation A Situation B Situation CTotal stockholders' equity, January 31, 2016 Add: Issuance of stock Net income Less: Dividends declared Net loss Total stockholders' equity, January 31, 2017 For each situation, use the accounting equation and the statement of retained earnings to compute the amount of Timmy's net income or net loss during the year ended January 31 2017. 1. Timmy issued $13 million of stock and declared no dividends. 2. Timmy issued no stock but declared dividends of $17 million. 3. Timmy issued $20 million of stock and declared dividends of $27 million. For a moving object, the force acting on the object varies directly with the objects acceleration. When a force of 60 N acts on a certain object, the acceleration of the object is 10 m/s^2 . If the force is changed to 54 N, what will be the acceleration of the object