Answer:
$2.3 per unit
Explanation:
Calculation for company's unit contribution margin
First step is to calculate the Contribution margin using this formula
Contribution margin = Sales revenue - Variable manufacturing expenses - Variable selling and administrative expenses
Let plug in the formula
Contribution margin = $1,010,500 - $416,000 - $54,000
Contribution margin = $540,500
Now let calculate the Contribution margin per unit using this formula
Contribution margin per unit = Contribution margin / Cement tons
Contribution margin per unit = $540,500 / 235,000
Contribution margin per unit =$2.3 per unit.
Therefore company's unit contribution margin is $2.3 per unit
Setrakian Industries needs to raise $48.5 million to fund a new project. The company will sell bonds that have a coupon rate of 5.56 percent paid semiannually and that mature in 10 years. The bonds will be sold at an initial YTM of 6.13 percent and have a par value of $2,000. How many bonds must be sold to raise the necessary funds
Answer:
25,317 unit
Explanation:
Current price of bond = PV(Rate, Nper, Pmt, Fv)
Current price of bond = PV(6.13%/2, 10*2 ,5.56%/2*2000, 2000)
Current price of bond = $1,915.71
Number of bonds to issue = $48,500,000 / $1,915.71
Number of bonds to issue = 25316.98430
Number of bonds to issue = 25,317 unit
At the beginning of October, Bowser Co.’s inventory consists of 58 units with a cost per unit of $42. The following transactions occur during the month of October
October 4 Purchase 122 units of inventory on account from Waluigi Co. for $50 per unit, terms 2/10, n/30.
October 5 Pay cash for freight charges related to the October 4 purchase, $749.
October 9 Return 15 defective units from the October 4 purchase and receive credit.
October 12 Pay Waluigi Co. in full.
October 15 Sell 152 units of inventory to customers on account, $12,160. [Hint: The cost of units sold from the October 4 purchase includes $50 unit cost plus $7 per unit for freight less $1 per unit for the purchase discount, or $56 per unit.]
October 19 Receive full payment from customers related to the sale on October 15.
October 20 Purchase 92 units of inventory from Waluigi Co. for $62 per unit, terms 3/10, n/30.
October 22 Sell 92 units of inventory to customers for cash, $7,360. (Note: For calculating the cost of inventory sold, ignore the possible purchase discount on October 20.)
Required:
Assuming that Bowser Co, uses a FIFO perpetual inventory system to maintain its inventory records, record the transactions.
Answer:
Bowser Co.
Journal Entries:
Oct. 4:
Debit Inventory $6,100
Credit Accounts Payable (Waluigi Co.) $6,100
To record the purchase of goods, terms 2/10, n/30.
Oct. 5:
Debit Freight-in Expense $749
Credit Cash $749
To record the payment of freight for Oct. 4 purchase.
Oct. 9:
Debit Accounts Payable (Waluigi Co.) $750
Credit Inventory $750
To record the goods returned on account.
Oct. 12:
Debit Accounts Payable (Waluigi Co.) $5,350
Credit Cash $5,243
Credit Cash Discounts $107
To record the payment on account.
Oct. 15:
Debit Accounts Receivable $12,160
Credit Sales Revenue $12,160
To record the sale of goods on account.
Oct. 15:
Debit Cost of goods sold $8,512
Credit Inventory $7,600
Credit Freight-in $912
To record the cost of goods sold.
Oct. 19:
Debit Cash $12,160
Credit Accounts Receivable $12,160
To record the receipt of cash on account.
Oct. 20:
Debit Inventory $5,704
Credit Accounts Payable (Waluigi Co.) $5,704
To record the purchase of goods on account.
Oct. 22:
Debit Cash $7,360
Credit Sales Revenue $7,360
To record cash sales.
Oct. 22:
Debit Cost of goods sold $5,626
Credit Inventory $5,626
To record the cost of goods sold.
Explanation:
a) Data and Analysis:
Oct. 4: Inventory $6,100 Accounts Payable (Waluigi Co.) $6,100, terms 2/10, n/30.
Oct. 5: Freight-in Expense $749 Cash $749
Oct. 9: Accounts Payable (Waluigi Co.) $750 Inventory $750
Oct. 12: Accounts Payable (Waluigi Co.) $5,350 Cash $5,243 Cash Discounts $107
Oct. 15: Accounts Receivable $12,160 Sales Revenue $12,160
Oct. 15: Cost of goods sold $8,512 Inventory $7,600 Freight-in $912
Oct. 19: Cash $12,160 Accounts Receivable $12,160
Oct. 20: Inventory $5,704 Accounts Payable (Waluigi Co.) $5,704
Oct. 22: Cash $7,360 Sales Revenue $7,360
Oct. 22: Cost of goods sold $5,626 Inventory $5,626 ($56 * 13 + $62 * 79)
Both __________ and __________ affect the awareness and motivation of a firm to undertake actions and responses. a. first-mover advantages; corporate size b. market commonality; resource similarity c. management capabilities; competitive analysis d. speed of management decisions; management actions
Answer:
b. market commonality; resource similarity
Explanation:
The two things that can impact the awareness and the motivation so that the firm could take the actions and responses is that the market commodity where the company deals with and the similarity of the resources. These two things would be required that can impact the awareness and the motivation level of the firm
hence, the option b is correct
AP* Price discrimination occurs when differences in a product's price reflect differences in marginal costs differences in a product's price reflect differences in marginal costs a products's average cost is greater than its average revenue a products's average cost is greater than its average revenue differences in a product's price do not reflect differences in costs of production differences in a product's price do not reflect differences in costs of production a product's average cost is less than its average revenue a product's average cost is less than its average revenue the supply of the product is elastic
Answer:
differences in a product's price do not reflect differences in costs of production.
Explanation:
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.
In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.
One of the importance associated with the pricing of products is that, it improves the image of a business firm.
Price discrimination refers to the situation in which a business firm sells an identical product to different consumers at different selling price based on reasons that are not in any way associated or related with its manufacturing cost.
This ultimately implies that, price discrimination occurs when differences in a product's price do not reflect differences in costs of production.
Dream, Inc., has debt outstanding with a face value of $6 million. The value of the firm if it were entirely financed by equity would be $18.25 million. The company also has 440,000 shares of stock outstanding that sell at a price of $32 per share. The corporate tax rate is 35 percent. What is the decrease in the value of the company due to expected bankruptcy costs? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Answer:
$955,000
Explanation:
According to the Modigliani and Miller theory, we can calculate the value of the levered firm which is denoted by;
VI = Vu + tB
VI = 18.25million + 0.35(6million)
VI = 20.35 million
We can also calculate the total market value of the firm Vt by adding the debt (B) with the total equity (SV)
Vt = B + SV
Vt = 5 million + 440,000(32)
Vt = 5 million + 14.80 million
Vt = 19.80 million
Then the decrease in the value of the company due to bankruptcy is
Vb = VI - Vt
Vb = 20.35 million - 19.80 million
VB = $955,000
Jamarcus was his collegiate chapter's delegate at a national conference of a professional business fraternity, Phi Chi Theta, in which he is a member. When the business meeting was conducted, parliamentary procedure was used, and Jamarcus was not familiar with this. Thus, he looked to the others to learn how he should behave in this situation. What type of influence does this reference group exhibit? procedural transient substantive informational legal
Answer:
informational
Explanation:
Informational influence is defined as a new concept or information that occurs within a group and leads to change in group member attitudes, behaviour, and belief.
In the given scenario parliamentary procedure was used in a business meeting and Jamarcus was not familiar with this.
He looked to other group members to learn how he should behave in this situation.
In this case the group is providing information of proper way of behaving during the meeting.
On January 1, 2019, Metco Inc. reported 268,000 shares of $5 par value common stock as being issued and outstanding. On March 24, 2019, Metco Inc. purchased for its treasury 3,000 shares of its common stock at a price of $38.00 per share. On August 19, 2019, 610 of these treasury shares were sold for $46.50 per share. Metco's directors declared cash dividends of $0.40 per share during the second quarter and again during the fourth quarter, payable on June 30, 2019, and December 31, 2019, respectively. A 2% stock dividend was issued at the end of the year. There were no other transactions affecting common stock during the year. Calculate the number of shares of stock issued in the stock dividend.
Answer:
The number of shares of stock issued in the stock dividend is 5,312.20 shares.
Explanation:
This can be determined as follows:
Number of shares before stock dividend = Number of shares reported on January 1, 2019 - Number of shares purchased for its treasury on March 24, 2019 + Number of treasury shares were sold on August 19, 2019 = 268,000 - 3,000 + 610 = 265,610
Number of dividend shares = Number of shares before stock dividend * Rate of stock dividend issued = 265,610 * 2% = 5,312.20
Therefore, the number of shares of stock issued in the stock dividend is 5,312.20 shares.
The expected return on a portfolio: Group of answer choices can be greater than the expected return on the best performing security in the portfolio. can be less than the expected return on the worst performing security in the portfolio. is independent of the performance of the overall economy. is limited by the returns on the individual securities within the portfolio. is an arithmetic average of the returns of the individual securities when the weights of those securities are unequal.
Answer:
is limited by the returns on the individual securities within the portfolio
Explanation:
Portfolio is simply defined as a list of securities showing how much is (or will be) invested in each of them.
The expected return on a portfolio is calculated as the weighted average of the expected returns on the securities that the portfolio involves. The weight of each security is the a Portion or a fraction of wealth invested in that security. Expected return on a portfolio of N securities is: rp= sum (Xr).
Expected Return is usually based on anticipated income and anticipated capital appreciation.
Zeus, Inc. produces a product that has a variable cost of $9.50 per unit. The company's fixed costs are $40,000. The product sells for $12.00 a unit and the company desires to earn a $20,000 profit. What is the volume of sales in units required to achieve the target profit? (Do not round intermediate calculations.)
Answer:
Break-even point in units= 26,087
Explanation:
Giving the following information:
Selling price= $12
Unitary variable cost= 9.7
Fixed costs= $40,000
Desired profit= $20,000
To calculate the number of units to be sold, we need to use the following formula:
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (40,000 + 20,000) / (12 - 9.7)
Break-even point in units= 26,087
In its income statement for the year ended December 31, 2022, Pharoah Company reported the following condensed data. Salaries and wages expenses $595,200 Loss on disposal of plant assets $106,880 Cost of goods sold 1,263,360 Sales revenue 2,828,800 Interest expense 85,200 Income tax expense 32,000 Interest revenue 83,200 Sales discounts 204,800 Depreciation expense 396,800 Utilities expense 140,800
Prepare a multiple-step income statement. (List other revenues before other expenses.)
Pharoah Company
Income Statement
Answer:
Net income is $86,960.
Explanation:
A multi-step income statement is an income statement which dsplayes th gross profit and the detailed of each category of expenses and incomes to arrive at a company's net income for a particular period.
A multi-step income statement can be prepared as follows:
Pharoah Company
Income statement
For the year ended December 31, 2022
Details $
Sales revenue 2,828,800
Sales discounts (204,800)
Net sales revenue 2,624,000
Cost of goods sold (1,263,360)
Gross profit 1,360,640
Operating expenses:
Salaries and wages expenses (595,200)
Depreciation expense (396,800)
Utilities expense (140,800)
Operating income 227,840
Other income (loss):
Loss on disposal of plant assets (106,880)
Interest income (expense):
Interest expense (85,200)
Interest revenue 83,200
Income before tax 118,960
Income tax expense (32,000)
Net income 86,960
The management of Wheeler Company has decided to develop cost formulas for its major overhead activities. Wheeler uses a highly automated manufacturing process, and power costs are a significant manufacturing cost. Cost analysts have decided that power costs are mixed. The costs must be broken into their fixed and variable elements so that the cost behavior of the power usage activity can be properly described. Machine hours have been selected as the activity driver for power costs. The following data for the past eight quarters have been collected:
Quarter Machine Hours Power cost
1 20000 26000
2 25000 38000
3 30000 42500
4 22000 37000
5 21000 34000
6 18000 29000
7 24000 36000
8 28000 40000
1. Prepare a scattergraph by plotting power costs against machine hours. Does the scattergraph show a near relationship between machine hours and power cost?
2. Using the high and low points (i.e., the high-low method), compute a power cost formula.
3. Use the method of least squares to compute a power cost formula. Evaluate the coefficient of determination.
Answer:
Explanation:
1-a See the attached photo for the a scattergraph.
1-b. Yes, the scattergraph show a near relationship between machine hours and power cost.
2. The power cost formula using the high and low points is as follows:
Total power cost = -7000 + (1.65 * Machine hours)
3-a. The power cost formula using the method of least squares is as follows:
Total power cost = 6454 + (1.21 * Machine hours)
3-b. R² = Coefficient of determination = 0.8969, or 89.69%
Explanation
1-a. Prepare a scattergraph by plotting power costs against machine hours.
Note: See the attached photo for the a scattergraph by plotting power costs against machine hours.
1-b. Does the scattergraph show a near relationship between machine hours and power cost?
Note that Scattergraph is interpreted by looking by looking for trends in the data as there is movement from left to right.
From the attached a scattergraph, it can be observed that there is an uphill pattern as there is a movement from left to right. This indicates that there a near positive relationship between power costs against machine hours.
Therefore, the scattergraph show a near relationship between machine hours and power cost.
2. Using the high and low points (i.e., the high-low method), compute a power cost formula.
2-a. Calculation of variable cost elements
Variable cost per machine hour = (Highest Power Costs - Lowest Power Costs) / (Highest machine hours – Lowest machine hours) = (42500 - 26000) / (30000 - 20000) = 1.65 per hour
2-b. Calculation of fixed cost elements
Total power cost = Total Fixed Cost + Total Variable Cost ................. (1)
Where;
Total Variable Cost = Variable cost per machine hour * Machine hours ……….. (2)
Substitute equation (2) into equation (1), we have:
Total power cost = Total Fixed Cost + (Variable cost per machine hour * Machine hours) ……………………. (3)
Using highest machine hours and substitute relevant values into equation (3), we have:
42500 = Total Fixed Cost + (1.65 * 3000)
42500 = Total Fixed Cost + 49,500
Total Fixed Cost = 42500 - 49,500
Total Fixed Cost = -7000
2-c Computation of a power cost formula
Substituting Variable cost per machine hour = 1.65 and Total Fixed Cost = -7000 into equation (3), we can compute the power cost formula as follows:
Total power cost = -7000 + (1.65 * Machine hours) ………………. (4)
Equation is the power cost formula.
3. Use the method of least squares to compute a power cost formula. Evaluate the coefficient of determination.
Note: See the attached excel file for the calculations of Total of Machine Hours (x), Power cost (y), xy, x^2, and y^2.
Since Σ = Total of or summation of, we can therefore obtain the following from the attached excel file:
Σx = 190,800
Σy = 282,500
Σxy = 6,878,400,000
Σx² = 4,666,540,000
Σy² = 10,188,250,000
N = Number of quarters = 8
3-a. Use the method of least squares to compute a power cost formula
Step 1: Calculation of variable cost per rental return
To calculate the variable power cost per machine hour, the following formula is used:
Variable power cost per machine hour = (NΣxy − ΣxΣy) /((NΣx²) − (Σx)²) ……………… (5)
= (Σxy – (1/8)ΣxΣy) /((Σx²) – (1/8)(Σx)²)
=(6,878,400,000 – ((1/8) * 190,800 * 282,500)) / (4,666,540,000 – ((1/8) * 190,800²))
Substituting the relevant values into equation (5), we have:
Variable cost per rental return = ((8 * 6,878,400,000) - (190,800 * 282,500)) /((8 * 4,666,540,000) - 190,800²)
Variable power cost per machine hour = 1.21
Step 2: Calculation of quarterly fixed power cost
This can be calculated using the following formula:
Fixed Cost per quarter = {Σy - (Variable power cost per machine hour * Σx) / N ....... (6)
Substituting the relevant values into equation (6), we have:
Fixed Cost per quarter = (282,500 - (1.21 * 190,800)) / 8
Fixed Cost per quarter = 6,454
Step 3: Computation of the power cost formula
Substituting Variable cost per machine hour = 1.21 and Total Fixed Cost = 6,454 into equation (3) in part 2 above, we can compute the power cost formula as follows:
Total power cost = 6454 + (1.21 * Machine hours) ………………. (4)
Equation (4) is the power cost formula.
3-b. Evaluate the coefficient of determination.
This can be evaluated using the following formula:
R² = Coefficient of determination = (NΣxy – ΣxΣy) / ((NΣx² - (Σx)²) * (NΣy² - (Σy)²))^0.5 ……….. (5)
Substituting the relevant values into equation (5) we have:
R² = ((8 * 6,878,400,000) – (190,800 * 282,500)) / (((8 * 4,666,540,000) – 190.800²) * ((8 * 10,188,250,000) – 282,500²))^0.5
R² = 0.8969, or 89.69%
King Company issued bonds with a face amount of $1,600,000 in 2015. As of January 1, 2020, the balance in Discount on Bonds Payable is $4,800. At that time, King redeemed the bonds at 102. Assuming that no interest is payable, make the entry to record the redemption. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer:
Dr Bonds payable 1,600,000
Dr Loss on redemption of bonds 36,800
Cr Cash 1,632,000
Cr Discount on bonds payable 4,800
Explanation:
Loss/gain on redemption of bonds = carrying value - cash paid = ($1,600,000 - $4,800) - $1,632,000 = $1,595,200 - $1,632,000 = -$36,800 loss
Anchor Company purchased a manufacturing machine with a list price of $91,000 and received a 2% cash discount on the purchase. The machine was delivered under terms FOB shipping point, and transportation costs amounted to $3,400. Anchor paid $4,800 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $6,200 for the first year of operations. What is the cost of the machine
Answer:
$103,580
Explanation:
The Cost of Machine according to IAS 16 include Purchase costs less trade discounts and rebates plus any direct costs incurred to put the asset in the location and condition intended for use by management.
Calculation of the Cost of Machine
Purchase Price $91,000
Cash discount $91,000 x 2% ($1,820)
Transport Cost $3,400
Installation and testing costs $4,800
Insurance costs $6,200
Total Cost $103,580
Therefore,
the cost of the machine is $103,580
Roberta transfers property with a tax basis of $495 and a fair market value of $546 to a corporation in exchange for stock with a fair market value of $356 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $190 on the property transferred. What is the amount realized by Roberta in the exchange
Answer: $546
Explanation:
The amount realized by Roberta in the exchange will be gotten through the addition of the fair value of the stock that was acquired to the liability that's assumed by the corporation. This will be:
Fair value of stock acquired = $356
Add: Liability assumed by corporation = $190
Amount realised = $356 + $190 = $546
Caroli, who was 17 years old, signed an agreement to buy a used computer from Egan for $150. While Caroli was on his way to pick up the equipment, Egan got an offer for $250 from someone else. When CAroli arrived with the money to complete the transaction, Egan told him he was unwilling to go through with the agreement because Caroli was a mior.
a. Can Egan cancel the contract?
b. Is this a voidable contract?
c. Can Caroli cancel the contract?
d. If Egan sells the computer to Caroli, can Caroli later return the computer?
Answer:
See below
Explanation:
a. Can Egan cancel the contract.
No. In the United states, adults who contract with minor are bound to the contract. Only the minor may disaffirm the contract.
b. Is this a voidable contract.
Yes it is. It is voidable in the scenes that it can be affirmed or rejected by one of the parties to the contract, in this case the minor - Caroli
c. Can Caroli cancel the contract.
Yes, he can. This is because he has not attained the statutory age - 18 years, hence a minor. This may however be challenged if it is the minor partial performs that term of the contract and its shown to understand that terms
d. If Egan sells the computer to Caroli, can Caroli later return the computer.
Yes. In this case, it shows that the minor - Caroli has disaffirm the contract, hence must return the computer to Egan.
In 2019, Ivanhoe Company had a break-even point of $385,000 based on a selling price of $7 per unit and fixed costs of $115,500. In 2020, the selling price and the variable costs per unit did not change, but the break-even point increased to $454,000.
Required:
a. Compute the variable costs per unit and the contribution margin ratio for 2019.
b. Compute the increase in fixed costs for 2020.
Answer:
Results are below.
Explanation:
Giving the following information:
2019:
Break-even point= $385,000
Selling price= $7
Fixed costs= $115,500
2020:
Break-even point= $454,000
First, we need to calculate the contribution margin ratio for 2019. We will use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
385,000 = 115,500 / contribution margin ratio
contribution margin ratio*385,000 = 115,500
contribution margin ratio= 0.3
Now, we can determine the unitary variable cost:
contribution margin ratio= unitary contribution margin / selling price
0.3 = (7 - unitary variable cost) / 7
2.1 = 7 - unitary variable cost
unitary variable cost= $4.9
Finally, we can determine the fixed costs for 2020 and the net increase with 2019:
Break-even point (dollars)= fixed costs/ contribution margin ratio
454,000= fixed costs / 0.3
$136,200 = fixed costs
Increase= 136,200 - 115,500= $20,700
Robert, a highly experienced software engineer, joins a new company as the manager of a large group of employees. In his first meeting with the employees of the new organization, he explains his expectations on the behavior of employees. He also lets the employees know that noncompliance with his norms will result in withholding the rewards that they receive. Which of the following types of power is Robert using here?
a. reward
b. transformational
c. referent
d. coercive
Answer:
reward, maybe even referent
Explanation:
Robert is using rewarding to let people know that they need to work or they won't be rewarded.
The following note transactions occurred during the year for Towell Company: Nov. 10 Towell issued a 90-day, 9% note payable for $8,000 to Hyatt Company for merchandise. Dec. 1 Towell signed a 120-day, 10% note at the bank for $12,000. Dec. 20 Towell gave Barr, Inc., a 60-day, 10%, $12,000 note for payment of account. Prepare the general journal entries necessary to adjust the interest accounts at December 31. Use 360 days for calculations and round to the nearest dollar.
Answer: See explanation
Explanation:
The general journal entries necessary to adjust the interest accounts at December 31 will be:
1. December 31:
Debit: Interest Expenses = $8,000 × 9% × 51/ 360 = $102
Credit: Interest payable = $102
(To accrue interest expenses for the note issued on November 10).
2. December 31:
Debit: Interest Expenses = $12,000 × 10% ×30/360 = $120
Credit: Interest payable = $120
(To accrue interest expenses for the note issued on December 1)
3. December 31:
Debit: Interest Expenses = $12,000 × 10% × 11/360 = $36.67
Credit: Interest payable = $36.67
(To accrue interest expenses for the note issued on December 20).
A publishing house is using 400 printers and 200 printing presses to produce books. The printers' wage rate is $20 and the price of a printing press is $100. The last printer added 20 books to total output, while the last press added 50 books to total output. In order to maximize the number of books published with a budget of $28,000, the publishing house
Answer:
The publishing house is not using cost minimizing combination of printers and printing press.
Explanation:
The publishing house go towards more of printers and less of printing press because the cost of printing price is almost three times higher than the cots of printers. Also the output of printing press is lower and the output of printers is almost double. The publishing house should use such a combination of both the available resources which maximizes its revenue.
The following information applies to the questions displayed below Over a four-year period, Jackie Corporation reported the following series of gross profits 2018 2019 2020 2021 $60,000 $66,000 $74,000 $90,000 Cost of goods sold32,000 46,00028,000 48,000 $28,000 $20,000 $46,000 $42,000 Net sales Cross profit In 2021, the company performed a comprehensive review of its inventory accounting procedures. Based on this review company records reveal that ending inventory was understated by $11,000 in 2019. Inventory in all other years is correct. Problem 6-10A Part 1
Required:
1. Calculate the gross profit ratio for each of the four years based on amounts originally reported. (Round your answers to the nearest whole percent.) Gross Profit Ratio 2018 2019 2020 2021 The following information applies to the questions displayed below Over a four-year period, Jackie Corporation reported the following series of gross profits 2021 Net sales Cost of goods sold Gross profit $60,000 $66,000 $74,000 $90,000 $28,000 $20,000 46,000 $42,000 In 2021, the company performed a comprehensive review of its inventory accounting procedures. Based on this review, company records reveal that ending inventory was understated by $11,000 in 2019. Inventory in all other years is correct
2. Calculate the gross profit ratio for each of the four years based on corrected amounts. (Round your answers to the nearest whole percent.) Gross Ratio 2018 2019 2020 2021
Answer:
1. Gross Profit ratio
2018 47%
2019 30%
2020 62%
2021 47%
2. Gross Profit ratio
2018 47%
2019 47%
2020 47%
2021 47%
Explanation:
1. Calculation for the gross profit ratio for each of the four years based on amounts originally reported.
2018 2019 2020 2021
Net sales $60,000 $66,000 $74,000 $90,000
Less Cost of goods sold $32,000 $46,000 $28,000 $48,000
=Gross profit$ 28,000 $20,000 $46,000 $42,000
Gross Profit ratio
2018 47% =$28,000/$60,000
2019 30% =$20,000/$66,000
2020 62% =$46,000/$74,000
2021 47% =$42,000/$90,000
2. Calculation for the gross profit ratio for each of the four years based on corrected amounts.
Cost of goods sold 2019=$46,000-$11,000
Cost of goods sold 2019=$35,000
Cost of goods sold 2020=$28,000+$11,000
Cost of goods sold 2020=$39,000
2018 2019 2020 2021
Net sales $60,000 $66,000 $74,000 $90,000
Less Cost of goods sold $32,000 $35,000 $39,000 $48,000
=Gross profit $28,000 $31,000 $35,000 $42,000
Gross Profit ratio
2018 47% =$28,000/$60,000
2019 47% =$31,000/$66,000
2020 47% =$35,000/$74,000
2021 47% =$42,000/$90,000
Here is the income statement for Teal Mountain Inc.
TEAL MOUNTAIN INC.
Income Statement
For the Year Ended December 31, 2017
Sales revenue $402,900
Cost of goods sold 256,700
Gross profit 146,200
Expenses (including $ 10,200 interest and $29,600 income taxes) 89,200
Net income $57,000
Additional information:
1. Common stock outstanding January 1, 2017, was 30,000 shares, and 39,000 shares were outstanding at December 31, 2017.
2. The market price of Teal Mountain stock was $15 in 2017.
3. Cash dividends of $24,700 were paid, $ 6,500 of which were to preferred stockholders.
Compute the following measures for 2017.
(a) Earnings per share $_____
(b) Price-earnings ratio _____ times
(c) Payout ratio _____ %
(d) Times interest earned _____ times
Answer:
See below
Explanation:
a. The earnings per share would be calculated as;
Earnings per share = (Net income - Preferred stock dividend) / Average number of common shares outstanding
But
Weighted average number of common shares = (Number of common shares outstanding in the beginning + Number of common shares outstanding at then end) / 2
= (30,000 + 39,000) / 2
= 34,500
Preferred stock dividend = 6,500
Therefore,
Earnings per share = ($57,000 - $6,500) / 34,500
= $50,500 / 34,500
= $1.46
b. Price earnings ratio
= Market price per share / Earning per share
= $15 / $1.46
= 10.27 times
c. The payout ratio
= (Total cash dividends - Preferred stock dividends) / Net income
= ($24,700 - $6,500) / $57,000
= $18,200 / $57,00)
= 31.93%
d. Times interest
= ( Net income + Interest expense + Tax expense) / Interest expense.
= $57,000 + $10,200 + $29,600) / $10,200
= $96,800 / $10,200
= 9.49 times
Economic costs of unemployment
Consider a hypothetical economy in which potential output is $200 billion and the natural rate of unemployment is 4%. The current unemployment rate is 5.6%. Since the unemployment rate is greater than the natural rate of unemployment, the economy's actual GDP will be______ potential GDP.
According to Okun's law, the economy's GDP gap is billion. The burden of an increase in the economy-wide unemployment rate can differ widely across regions and across different groups of people. For example, in the United States, the jobless rate among workers with only a high school diploma has tended to be________ than the jobless rate among college graduates.
Answer: less than; higher
Explanation:
Since the unemployment rate is greater than the natural rate of unemployment, the economy's actual GDP will be less than potential GDP.
...the jobless rate among workers with only a high school diploma has tended to be higher than the jobless rate among college graduates.
When the economy is at its natural rate of unemployment, it means that the economy is producing at potential GDP. If however, the unemployment rate is more than this natural rate, it means that the economy is facing a downturn which is causing companies to not employ as much labor. Actual GDP is therefore lower than Potential GDP.
Workers with more specialized skills will usually feel the impact of an increase in unemployment less those with more general skills will. For this reason, college graduates will see less unemployment than those with only a high school diploma.
Data on the level of support for corporate sustainability (measured on a quantitative scale ranging from 0 to 160 points) for each of 992 senior managers at CPA firms are saved in CORSUS.txt
a) Construct a histogram for the data and use it to evaluate the validity of the normality assumption.
b) Obtain the mean and standard deviation for the data and use these statistics to evaluate the validity of the normality assumption.
c) Obtain the interquartile rage for the data and use these statistics to evaluate the validity of the normality assumption
Answer:
A) attached below
B) mean value = 67.755, std = 26.871
C) IQR( interquartile range ) = 37
Explanation:
A) Construct a histogram for the data and use it to evaluate the validity of normality assumption
Using Minitab to construct the Histogram from the shape of the Histogram we can see that the Normality assumption is valid because the shape is fairly symmetric
screenshot of Histogram is attached below
B) Obtain the mean and standard deviation for the data and use these statistics to evaluate the validity of the normality assumption.
still using Minitab to determine the std and mean values
mean value = 67.755, std = 26.871
Next : find the percentage of the observation that lie within 1,2 and 3 std from the mean
For one(1) std from the mean the interval = ( 40.884, 94.626 )
percentage of observation = 665 / 992 = 67.04
For two(2) std from the mean; The interval = ( 14.013 , 121.497 )
percentage of observation = 946 / 992 = 95.36%
For three(3) std from the mean ; The interval = ( -12.858, 148.368 )
percentage of observations = 991 / 992 = 99.90%
The percentages from the above calculations indicates the validity of the normality assumption
C) Obtain the interquartile rage for the data and use these statistics to evaluate the validity of the normality assumption
using MINITAB
since the data are assumed Normal; Ratio = [tex]\frac{IQR}{S} = 1.3[/tex]
std (s) = 26.871, IQR( interquartile range ) = 37
Next check if IQR / S will be = 1.3
= 37 / 26.871 = 1.377 ( This validates the normality assumption )
How does risk influence the rate of interest?
Answer:
Interest rate risk directly affects the values of fixed income securities. Since interest rates and bond prices are inversely related, the risk associated with a rise in interest rates causes bond prices to fall and vice versa. Interest rate risk affects the prices of bonds, and all bondholders face this type of risk.
Explanation:
Hope this helped Mark BRAINLEST!!
Henry Ford is known for the introduction of the assembly line and the Model T. As his manufacturing effort expanded, however, he also adopted an attitude that came to be known as Fordism. What was one of the central tenets in his system?
Answer:
Fordism, a specific stage of economic development in the 20th century. Fordism is a term widely used to describe (1) the system of mass production that was pioneered in the early 20th century by the Ford Motor Company or (2) the typical postwar mode of economic growth and its associated political and social order in advanced capitalism.
Explanation:
Good luck
During 2018, Raines Umbrella Corp. had sales of $763,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $462,000, $103,000, and $148,500, respectively. In addition, the company had an interest expense of $73,800 and a tax rate of 22 percent. (Ignore any tax loss carryforward provisions and assume interest expense is fully tax deductible.)
a. What is the company’s net income/loss for 2018? (Do not round intermediate calculations. Enter your answer as a positive value.)
b. What is the company's operating cash flow? (Do not round intermediate calculations.)
Answer and Explanation:
The computation is shown below;
a. The net income or loss for the year 2018 is
Sales $763,000
Less: COGS $462,000
Less: A&S expenses $103,000
Less: Depreciation $148,500
EBIT $49,500
Less: Interest $73,800
Taxable income -$24,300
Less: Taxes(22%) $0
Net income(loss) -$24,300
Net loss = $24,300
b. The operating cash flow is
OCF = EBIT + Depreciation - Taxes
= $49,500 + $148,500 - $0
= $198,000
6.
Jane's Juice Bar has the following cost schedules:
Quantity
Variable Cost
Total Cost
O vats of juice
1
2.
3
4
5
$ 0
10
25
45
70
100
135
$ 30
40
55
75
100
130
165
6
a. Calculate average variable cost, average total
cost, and marginal cost for each quantity.
b. Graph all three curves. What is the
relationship between the marginal-cost
curve and the average-total-cost curve?
Between the marginal-cost curve and the
average-variable-cost curve? Explain.
Answer:
This may help you to solve it
Sage Company began operations at the beginning of 2021. The following information pertains to this company.
1. Pretax financial income for 2021 is $87,000.
2. The tax rate enacted for 2021 and future years is 20%.
3. Differences between the 2021 income statement and tax return are listed below:
a. Warranty expense accrued for financial reporting purposes amounts to $6,600. Warranty deductions per the tax return amount to $1,900.
b. Gross profit on construction contracts using the percentage-of-completion method per books amounts to $84,500. Gross profit on construction contracts for tax purposes amounts to $66,300.
c. Depreciation of property, plant, and equipment for financial reporting purposes amounts to $57,900. Depreciation of these assets amounts to $84,300 for the tax return.
d. A $3,200 fine paid for violation of pollution laws was deducted in computing pretax financial income.
e. Interest revenue recognized on an investment in tax-exempt municipal bonds amounts to $1,500.
4. Taxable income is expected for the next few years. (Assume (a) is short-term in nature; assume (b) and (c) are long-term in nature.)
Required:
a. Compute taxable income for 2021.
b. Compute the deferred taxes at December 31, 2021, that relate to the temporary differences described above.
c. Prepare the journal entry to record income tax expense
Answer:
Answer is explained in the explanation section below.
Explanation:
Solution:
a. Taxable income for 2021.
Sage Company:
Computation of Taxable income and income tax for 2021
Pretax financial Income = $87000
Permanent differences:
Fine for Pollution = $3200
Interest revenue on municipal bonds = -$1500
Temporary differences:
Less: Excess of depreciation as per tax over books = -$26400
Add: Warranty expense in books higher than as per tax = $4700
Less: Gross profit as per books higher than as per tax on construction contracts = -$18200
Taxable Income = $48800
Income Tax (20%) = $9760
b. Deferred Taxes:
Deferred tax assets = $4700*20% = $940
Deferred tax liability = ($26,400 + $18,200) * 20% = $8920
c. Note: Journal Entries are attached in the attachment below.
This morning, you purchased a seventeen-year, 6.45% annual coupon bond with face value of $1,000 at a price of $1,030.04. Just after purchasing the bond, the yield to maturity of the bond falls to 5.50 percent and stays at that level throughout your investment period. If you sell your bond after holding it for seven years, what will be your realized rate of return
Answer:
6.73%
Explanation:
the price of the bond in seven years is:
PV = $1,000 / (1 + 5.50%)¹⁰ = $585.43
PV of coupon payments = $64.50 x 7.538 (PVIFA, 5.5%, 10 years) = $486.20
market price = $1,071.63
using an excel spreadsheet of financial calculator, the annual rate of return:
year 0 = -1030.04
year 1 = 64.5
year 2 = 64.5
year 3 = 64.5
year 4 = 64.5
year 5 = 64.5
year 6 = 64.5
year 7 = 1136.13
IRR = 6.73%
Windsor Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $145,600 Allowance for Doubtful Accounts $3,350 Sales Revenue (all on credit) 834,000 Sales Returns and Allowances 53,540 Prepare the journal entry to record bad debt expense assuming Windsor Company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Acc
Answer:
See below
Explanation:
1.
Bad debts ($145,600 × 4/100) = $5,824 - $3,350 = $4,000 Dr
...................To Allowance for doubtful account $4,000 Cr
(To record the estimation of 4% of bad debts on gross account receivable after adjusting the credit balance)
2.
Bad debts ($145,600 × 4/100) = $5,824 + $3,350 = $9,174 Dr
..............To Allowance for doubtful accounts $9,184 Cr
(To record 4% of account receivable but allowance for doubtful account).