Answer:
the amount of unrealized intra-entity inventory profit is $1,600
Explanation:
The computation of the amount of unrealized intra-entity inventory profit is given below:
= Profit percentage × amount at year end × purchase percentage
= (($75,000 - $55,000) ÷ $75,000) × 15,000 × 40%
= $1,600
hence, the amount of unrealized intra-entity inventory profit is $1,600
Children are likely to carry on the economic tildes of there parents in a __?
A:mixed economy
B:command economy
C:traditional economy
D: market economy
Dave M. Company issues 500 shares of $10 par value Common Stock and 100 shares of $40 par value Preferred Stock as a basket for a lump sum of $105,000. Total transaction costs paid to complete the sale was $5,000. Common Stock of the company was selling for $198 per share in the market that day and Preferred Stock was selling for $110 per share in the market that day.
Required:
a. Prepare a table showing how the sale price is allocated between the Common Stock and the Preferred Stock.
b. Prepare the journal entry to record the basket sale of the two stocks.
Answer:
a.
Allocation
Common Stock $94,500
Preferred Stock $10,500
b.
Journal Entry
Cash _____________________________$105,000
Common stock _____________________ $5000
Paid-in capital in excess of par - Common _$89,500
Preferred stock _____________________$4,000
Paid-in capital in excess of par - Preferred _$6,500
Explanation:
a.
First, we need to calculate the Market value of both stock using the foloowinf formula
Market value = Numbers of shares x Market value per share
Market value of common stock = 500 x $198 = $99,000
Market value of preferred stock = 100 x $110 = $11,000
Total value = $99,000 + $11,000 = $110,000
Now calculate the weight of each sock
Weight of common stock $99,000 / $110,000 = 0.90
Weight of preferred stock = $11,000 / $110,000 = 0.10
Allocation of the sale price is as follow
Allocated sale price = Weight of Stock x Sale price
Allocated sale price of common stock = $105,000 x 0.90 = $94,500
Allocated sale price of common stock = $105,000 x 0.10 = $10,500
b.
Common Sock is recorded separately as par value and paid-in capital excess of par as follow
Common Stock ( Par Value ) = 500 x $10 = $5,000
Common Stock ( Excess of Par ) = $94,500 - $5,000 = $89,500
Preferred Stock ( Par Value ) = 100 x $40 = $4,000
Preferred Stock ( Excess of Par ) = $10,500 - $4,000 = $6,500
the majority of retailers are what
Splish Brothers, Inc. On December 31, 2017, Splish Brothers, Inc. has $1,760,000 of short-term debt in the form of notes payable to Michaels State Bank due February 5, 2018. On January 28, 2018, Splish Brothers issued 17,600 shares of common stock at $75 per share. Splish Brothers used the proceeds of $1,320,000 from the stock issuance, along with $572,000 in cash to retire the short-term debt and associated accrued interest on February 5, 2018. Splish Brothers will issue its December 31, 2017 financial statements on February 25, 2018.
Marigold Corp. On December 31, 2017, Marigold Corp. has $2.640,000 of short-term notes payable to Indiana Bank & Trust. The notes are due on January 31, 2018. Marigold retired the notes, along with $176,000 in accrued interest, in full on January 31, 2018. On February 11, 2018, Marigold obtained $3,960,000 in long-term financing from Terre Haute Bank & Trust. The new debt bears interest at 5 percent, with interest payments due annually. Marigold will issue its December 31, 2017 financial statements on February 28, 2018.
Prepare partial balance sheets for Splish Brothers, Inc. and Marigold Corp. at December 31, 2017, showing how both companies' short-term debt should be presented. (Enter account name only and do not provide descriptive information.)
Answer:
Splish Brothers, Inc
Note payable $1,760,000
Marigold Corp
Note payable $2,640,000
Explanation:
Prepare partial balance sheets for Splish Brothers, Inc. and Marigold Corp. at December 31, 2017,
Preparation of partial balance sheets for Splish Brothers, Inc at December 31, 2017,
Equity and Liabilities
Short term debt
Note payable $1,760,000
Preparation of partial balance sheets for Marigold Corp. at December 31, 2017,
Equity and Liabilities
Short term debt
Note payable $2,640,000
Steelweld, a car parts manufacturer, pays employees a higher hourly rate as they learn to master more parts of the work process. Employees earn $10 per hour when they are hired and they can earn up to $20 per hour if they master all 12 work units in the production process. What is most likely a benefit Steelweld is trying to achieve with this reward system?
Answer:
The improvement of workforce flexibility
Explanation:
The work force flexibility may be defined as the strategy of the responding to changing circumstances as well as expectations. It lays emphasizes on the flexibility and the willingness to adapt to change. The employees who approach their work with a flexible mindset are highly valued by the employers.
In the context, Steelweld company pays their employees at a higher hourly rate when they learn to master more work skills. The employees are paid much higher when they master all the 12 work units than they were hired. By doing this, the Steelweld company is trying to benefit and improve the workforce flexibility in their company.
If the mean of three observations x + 2, x + 4, and x + 6 is 15, then x is equal to
a) 12
(b) 13
(c) 15
(d) 11
Answer:
x+2+x+4+x+6/3=15
3x+12=15x3
3x+12=45
3x=45-12
3x=33
x=33/3
x=11
hope it helps u
Answer:
D
Explanation
3x+12 divided by 3 multiple by 15
The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $61,000. The machine would replace an old piece of equipment that costs $15,000 per year to operate. The new machine would cost $6,000 per year to operate. The old machine currently in use could be sold now for a salvage value of $20,000. The new machine would have a useful life of 10 years with no salvage value. Required: 1. What is the annual depreciation expense associated with the new bottling machine
Answer:
1. $6,100
2. $3,000
3.$41,000
4.7.3%
Explanation:
1. Calculation for What is the annual depreciation expense associated with the new bottling machine
Depreciation expense= 61,000/10
Depreciation expense=$6,100
2. Calculation for What is the annual incremental net operating income provided by the new bottling machine
Reduction in Operating costs 9,000 ($15,000-$6,000)
Less: Depreciation expense $6000
Incremental net operating income $3,000
3. Calculation for What is the amount of the initial investment
Purchase cost $61,000
Less: Salvage value of old machine $20,000
Initial Investment $41,000
4. Calculation for What is the simple rate of return on the new bottling machine
Incremental net operating income 3000
÷ Initial Investment 41000
Simple rate of return 7.3%
(3,000÷41,000)
Which of the following scenarios illustrates the law of demand?
A. A research company finds that the more expensive a particular brand of a designer handbag, the more that consumers are willing to purchase the brand.
B. Kathleen eats more steak when the price is low, and less when the price is high.
C. Francis does not care about the price of coffee at the coffee shop – he must buy two cappuccinos every day, regardless of the price.
D. John likes to drink spring water. At $2 he buys four bottles of water, and at $1.50 he still buys four bottles of water.
Answer:
Option B is correct.
Explanation:
In order to answer this question correctly, we first need to understand the law of demands.
Law of demands: It says that the relationship of price and quantity demanded is inversely proportional. It means if the price of a particular product goes high, then the quantity of demand will be reduced. Similarly, if the price of the product is low then the quantity of demanded will be higher.
Here,
Option B is the most relevant to the Law of Demand which says that Kathleen eats more steak when the price is low. It means when the price is low, the quantity of steak demanded is higher in Kathleen's case. Furthermore, Kathleen eats less when the price is high. It means, when the price of steak is higher then the quantity of steak demanded from Kathleen is low.
Hence, Option B is the correct option which fulfills the law of demand.
Fernando Co. will receive 5 million British pounds (£) tomorrow as a result of selling products to a British firm. Fernando has estimated the standard deviation of daily percentage changes of the British pound to be 1.1% over the last 100 days. Assume that these daily percentage changes are normally distributed. The expected daily percentage change for the British pound is 0.2% tomorrow. What is the maximum one-day loss based on the value-at-risk (VAR) method? Assume a 95% confidence interval.
a. 2.02%.
b. 1.82%.
c. 1.62%.
d. 1.10%.
e. none of these choices are correct.
Fernando Co. will receive 5 million British pounds (£) tomorrow as a result of selling products to a British firm. Fernando has estimated the standard deviation of daily percentage changes of the British pound to be 1.1 percent over the last 100 days. Assume that these daily percentage changes are normally distributed. The expected daily percentage change for the British pound is 0.2 percent tomorrow. What is the dollar value of the maximum potential loss Fernando Co. could incur if the current spot rate for the pound is $1.50?
a. $75,000.
b. $136,500.
c. $151,500.
d. $121,500.
e. none of these choices are correct.
Answer and Explanation:
The computation is shown below:
VAR = {predicted daily percentage change for the British pound - (z value at 95% ×standard deviation of daily percentage ) }
= 0.2% - (1.65 × 1.1%)
= 1.62%
The dollar value of the maximum Portfolio loss is
= Var × Portfolio Value × Change in the value of Pound
= 1.62% × 5000000 × 1.5
= $121,500
Cullumber Co. began operations on January 2, 2020. It employs 15 people who work 8-hour days. Each employee earns 11 paid vacation days annually. Vacation days may be taken after January 10 of the year following the year in which they are earned. The average hourly wage rate was $18 in 2020 and $19.50 in 2021. The average vacation days used by each employee in 2021 was 10. Cullumber Co. accrues the cost of compensated absences at rates of pay in effect when earned
Prepare journal entries to record the transactions related to paid vacation days during 2020 and 2021.
Answer and Explanation:
The Journal entries are shown below:
On 2020,
Wages expense Dr. $23,760(15 × 8 hrs × 11 days × $18)
To vacation wages payable $23,760
(To record the wages expense)
On 2021
Wages expense Dr $1,800
Vacation wages payable $21,600 (15 × 8 hrs × 10 days × $18)
To Cash $23,400 (15 × 8 hrs × 10 days × $19.50)
(To record the cash paid)
Wages expense Dr.$25,740 (15 × 8 hrs × 11 days × $19.50)
To vacation wages payable $25,740
(To record the wages expense)
Consider the market for widgets. Widgets are produced in the United States, unless producers aren’t willing to meet the quantity demanded at a particular price. In that case, widgets are imported.
Suppose that the price with free trade is $7. If lawmakers want to ensure that U.S. widget producers can sell at least 8,000 widgets, what might they do?
Price
Quantity Demand
Quantity SuppliedDomestically
Quantity Imported
$6 13,000 2,000 8,000
$7 12,000 4,000 8,000
$8 11,000 6,000 5,000
$9 10,000 8,000 2,000
$10 9,000 9,000 0
$11 8,000 10,000 0
impose a tax on imported widgets
provide a subsidy for imported widgets
impose an import quota
Answer:
impose a tax on imported widgets - if the government imposes a tax on imported widgets, imported widgets will become more expensive to consumeres, making consumers flock to domestically produced widgets, prompting domestic firms to increase domestic supply to at least 8,000 widgets.
impose an import quota - the government can also simply impose an import quota of 4,000 widgets, which will oblige consumers to buy at least 8,000 domestic widgets if they want to satisfy their demand of 12,000 widgets.
if you were living in a world without a financial system ,how would you make provisions towards your retirement.
In the FASB ASC, Sections are standardized across all Subtopics. For example, Section 20 will be the Glossary section in every Subtopic. Match the Section number with the appropriate description of the Section below. (Note: Not all Section numbers have been included, and not all of the descriptions will be used.)
- 05 - 25 - 30 - 35 - 50 - 65
A. Scope and Scope Exceptions
B. Recognition
C. Subsequent Measurement
D. Initial Measurement
E. XBRL Elements
F. Disclosure
G. Transition and Open Effective Date Information
H. Overview and Background
I. Implementation Guidance and Illustrations
J. Measurement
Answer:
A. 25
B. 50
C.05
D. 25
E. 30
F. 65
G. 35
H. 05
I. 25
J. 05
Explanation:
FASB is Financial Accounting Standard Board which reviews the standards and monitors its implementation after their issuance. The main purpose of FASB is to improve the financial accounting standards. It is single source of authoritative generally accepted accounting practices.
The following information is related to Splish Company for 2020.
Retained earnings balance, January 1, 2020 $1,332,800
Sales Revenue 34,000,000
Cost of goods sold 21,760,000
Interest revenue 95,200
Selling and administrative expenses 6,392,000
Write-off of goodwill 1,115,200
Income taxes for 2020 1,691,840
Gain on the sale of investments 149,600
Loss due to flood damage 530,400
Loss on the disposition of the wholesale division (net of tax) 598,400
Loss on operations of the wholesale division (net of tax) 122,400
Dividends declared on common stock 340,000
Dividends declared on preferred stock 108,800
Splish Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Splish sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year.
Required:
Prepare a multiple—step income statement.
Answer:
Net income is $2,034,560.
Explanation:
The multiple-step income statement refers to an income statement that segregates operating revenues and operating expenses of an organisation from its nonoperating revenues, nonoperating expenses, gains, and losses. In addition, gross profit which is net sales revenue minus the cost of goods sold.
The multiple-step income statement is an alternative to the single-step income statement which reports uses just one equation to calculate profits by deducting total revenue from total expenses from segregating them.
The multiple step income statement of Splish Company for 2020 will look as follows:
Splish Company
Income Statement
For the Year Ended December 31, 2020
Particulars $ $
Sales Revenue 34,000,000
Cost of goods sold (21,760,000)
Gross profit 12,240,000
Selling and administrative expenses (6,392,000)
Income from operation 5,848,000
Other revenues and gains
Interest revenue 95,200
Gain on the sale of investments 149,600
Total other revenues and gains 244,800
6,092,800
Other expenses and losses
Write-off of goodwill (1,115,200)
Loss due to flood damage (530,400)
Total other expenses and losses (1,645,600)
Income from continuing op. b4 tax 4,447,200
Income taxes (1,691,840)
Income from continuing operation 2,755,360
Discontinued operation
Loss on disposal (net of tax) (598,400)
Loss on operations (net of tax) (122,400)
(720,800)
Net income 2,034,560
One of the key decisions employers must make is the level of compensation provided to employees. Compensation is a significant cost, and employees are one of the most important assets of the organization. It is important that the organization makes and executes good strategic choices. To facilitate this process, many organizations think systematically about its job structures for compensation and pay levels for different jobs.
An organization's job structure consists of relative pay for different functions and different levels of responsibility. It defines, for example, the difference in pay between entry-level and management jobs, as well as different entry-level jobs in different departments, such as in production or accounting. Pay level is the average amount that an organization pays for a particular job and includes wages, salaries, and bonuses. Job structure and pay levels together form the pay structure, a policy that helps the organization achieve goals related to employee motivation, cost control, and the ability to attract and retain talented employees.
This activity is important because it will help you distinguish between the various factors that impact an organization’s pay structure. The goal of this activity is to classify decisions based on the factors used to establish a pay structure.
HR professionals develop pay structures for their organations based on such factors as legal requirements, company goals, and market forces. Drag each item into the appropriate column on the chart.
1. Equal pay for equal work
2. National compensation survey
3. Product markets
4. Benchmarking
5. Equitable pay rates
6. Child labor laws
7. Federal minum- wage laws
8. Overtime pay
9. Retention of talented staff
10. Trends in labor markets
11. Company cost centers
A. Legal Requirements
B. Organizational Goals
C. Market Forces
Answer:
1. Company goals
2.Market forces
3. market forces
4. company goals
5. market forces
6. legal requirement
7. legal requirement
8. company goals
9. company goals
10. market survey
11. company goals
Explanation:
Company goals is to maintain its business profitable. It is important for a business to retain its talented employees for maintaining quality of products. Legal requirements are the laws which are required to be followed by the businesses.
Which of the following is NOT a way to help you with time
management during a meeting?
O Check the clock frequently
O Ask for help resolving issues
O Ask attendees to help keep track of time
O Follow-up on issue you can solve immediately
Answer:
check the clock frequently
Osborn Manufacturing uses a predetermined overhead rate of $ 19.70 per direct labor- hour. This predetermined rate was based on a cost formula that estimates $265,950 of total manufacturing overhead for an estimated activity level of 13,500 direct labor-hours. The company actually incurred $260,000 of manufacturing overhead and 13,000 direct labor-hours during the period.
Required:
1. Determine the amount of underapplied or overapplied manufacturing overhead for the period.
2. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the journal entry to dispose of the underapplied or overhead increase or decrease the company's gross margin? By how much?
Answer:
1. $3,900
2. $3900
Explanation:
Required:
1. Calculation to Determine the amount of underapplied or overapplied manufacturing overhead for the period.
Applied overhead = 19.70*13,000
Applied overhead = 256,100
manufacturing overhead = 260,000-256,100
manufacturing overhead= underapplied by $3,900
2. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the journal entry to dispose of the underapplied or overhead increase or decrease the company's gross margin? By how much
The gross margin would decrease by the amount of $3900
On October 21, 2004, Abitibi-Consolidated Inc., a large Canadian-based newsprint and groundwood producer, reported net income for its third quarter, 2004, of $182 million. This compares with a net loss for the same quarter of 2003 of $70 million. Sales for the quarter were up, to $1528 million, and earnings excluding low persistence items, was a loss of $27 million. the low - persistence items included a gain of $239 million before tax from foreign exchange conversion. Much of the company's long term debt is denominated in US dollars. The foreign exchange gain arose because of the rising value of the Canadian dollar, relative to the US dollar, during the quarter. Comparable figures for the third quarter of 2003 were as follows: sales of $ 1,340 mil-lion, a loss before low- persistence items of $ 32 million, and foreign exchange conversion gain of $ 13 million. There is no mention of R& D costs in the company’s third quarter report. Its 2003 annual report mentions R& D only in passing, with reference to forest conservation. Presumably, R& D expenditures are relatively low. Abitibi- Consolidated’s share price rose $ 0.59 to $ 7.29 on the Toronto Stock Exchange on October 21, 2004. The S& P/ TSX Composite index gained 59 points to close at 8,847 on the same day. According to media reports, the increases were driven by a "red- hot" materials and energy sect
Solution :
The unexpected earnings is the term used to address the difference between the actual earning of the company for a period as well as the expected earnings for the period. The financial analyst make a mathematical as well as a financial models of the company earnings from the other accounting periods. The unexpected aspect of the earnings also means the price of the stock that can price up of fall dramatically over the course of the day.
Here,
For Q3 2004 2003
Net reported income 82M (70M)
Expected earnings (27M)
Unexpected earnings 55M
Thus we consider the earnings excluding the low persistence items. The low persistence items do not included the sinte there is no continuity or durability of the earnings currently, as they can vary on the large scale.
Also we are given company beta was 0.779 which indicates less volatility. Even though the stock price went up from 0.59 to 0.79, the difference can be considered as the unexpected earnings.
i.e. [tex]$7.29 - 0.59 =6.7 $[/tex] increase per share.
Today manufacturers are relying more heavily on developing an MRP system for purchasing. the bidding process to obtain the lowest price. developing close relationships with just a few suppliers to secure affordable prices. many suppliers to keep their leverage.
Answer:
many suppliers to keep their leverage.
Explanation:
Which of the following is a simple sentence?
a. Because we will be reducing employee health insurance benefits, some employees may be unhappy; however, we must make sure that they understand the reason for the change.
b. HMO and PPO insurance plans offer additional cost savings.
c. Having healthy employees decreases the cost of monthly premiums; therefore, we will be implementing a wellness program.
d. If health insurance costs continue to rise, employee copays may increase.
The simple sentence is:b. HMO and PPO insurance plans offer additional cost savings.
A simple sentence is a sentence with one independent clause (also called a main clause). It can have a compound subject or predicate. There is only one independent clause in a simple sentence and it expresses a single thought. Among the given sentences, the simple sentence is:b. HMO and PPO insurance plans offer additional cost savings.
Explanation:The sentence "HMO and PPO insurance plans offer additional cost savings" is a simple sentence because it contains only one subject-verb pair, “HMO and PPO insurance plans” (subject), “offer” (verb).
The sentence is clear and straightforward. It contains no dependent clauses or conjunctions that join two independent clauses. Hence, this sentence is a simple sentence.
for such more question on insurance
https://brainly.com/question/30291521
#SPJ8
The legal theory of contributory negligence:
a. is in effect in the majority of states throughout the nation.
b. means that, even assuming the defendant is negligent, if the plaintiff is even slightly negligent, the plaintiff recovers nothing.
c. allows the negligent plaintiff to recover if he was responsible for less than 50 percent of his injury.
d. has been criticized as rewarding a plaintiff for being careless.
Answer:
b. means that, even assuming the defendant is negligent, if the plaintiff is even slightly negligent, the plaintiff recovers nothing.
Explanation:
Contributive negligence is a tort in law that allows the defender in a case to completely prevent a plaintiff from getting any recovery in a case.
This occurs if the defender can prove the plaintiff is negligent resulting in their own injury. That is self injury.
On the other hand comparative negligence allows the plaintiff recover a certain percentage in case of negligence that affects himself. For example if plaintiff was 10% negligent then they lose 10% of the amount they were to recover.
So contributory negligence means that, even assuming the defendant is negligent, if the plaintiff is even slightly negligent, the plaintiff recovers nothing.
Recently, a group of university students decided to incorporate for the purposes of selling a process to recycle the waste product from manufacturing cheese. Some of the initial costs involved were legal fees and office expenses incurred in starting the business, state incorporation fees, and stamp taxes. One student wishes to charge these costs against revenue in the current period. Another wishes to defer these costs and amortize them in the future. Which student is correct
Answer:
The student wishing to defer these costs and amortize them in the future.
Explanation:
Indeed, according to standard regulatory requirements, all the initial costs associated with incorporating a business cannot be deducted all at once in the first year of operation.
However, these costs are spread over a long period of time. And one way to do this is to amortize them in the future. Therefore, the second student deferring cost is correct.
For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GOP as part of consumption (C), investment (), government purchases (G), exports (X), or imports (M).
a. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.
b. Sam's employer upgrades all of its computer systems using U.S-made parts.
c. Teresa's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
d. Sam buys a sweater made in Guatemala.
e. Teresa gets a new refrigerator made in the United States.
Answer:
a. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. - Gonverment purchases (G)
Government purchases include all expenses incurred by the government, like investment in public roads or public schools. It does not include transfer payments like social security or medicare though.
b. Sam's employer upgrades all of its computer systems using U.S-made parts. - Investment (I)
Investment includes all purchases made by private firms with the goal of increasing their assets, and economic profit.
c. Teresa's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. - exports (X)
Exports are all goods and services, produced domestically (Vermont) and sold abroad (Sweden).
d. Sam buys a sweater made in Guatemala. - imports (M).
Imports are all goods and services, produced abroad (Guatemala), and consumed by domestic individuals or firms (Sam)
e. Teresa gets a new refrigerator made in the United States. - consumption (c)
Consumption includes all goods and services purchased by individuals and households in the United States.
Dawn, a sole proprietor, was engaged in a service business and reported her income on a cash basis. In 2018, she incorporated her business by transferring the assets of the business to a new corporation in return for all the stock in the corporation plus the corporation’s assumption of the liabilities of her proprietorship. All the receivables and the unpaid trade payables were transferred to the new corporation. The assets of the proprietorship had total basis of $125,000 and total fair market value of $300,000. The trade accounts payable assumed by the corporation totaled $35,000, and were for services rendered by third parties directly to customers of the business under Dawn’s supervision. The corporation also assumed a note payable to the bank, in the amount of $95,000. The note was issued for a loan used to purchase computers and other business equipment used in the business and transferred to the corporation.
a. Dawn has a taxable gain on the transfer of $5,000.
b. Dawn has a basis of $20,000 in the stock she receives.
c. Dawn has a basis of $10,000 in the stock she receives.
d. Dawn has a basis of $30,000 in the stock she receives.
e. Dawn has a basis of $235,000 in the stock she receives.
Answer:
d. Dawn has a basis of $30,000 in the stock she receives.
Explanation:
The computation is shown below:
= Total assets basis - total liabilities in terms of note payable
= $125,000 - $95,000
= $30,000
So Dawn has the basis of $30,000 in terms of the stock she received
Therefore the option d is correct
The most recent financial statements for Live Co. are shown here:
Income Statement Balance Sheet
Sales $4,800 Current assets $5,102 Debt $10,201
Costs
3,168
Fixed assets 12,491 Equity 7,392
Taxable income $1,632 Total
$17,593
Total
$17,593
Taxes (34%) 555
Net income
$1,077
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external equity financing is possible.
Required:
What is the internal growth rate?
A. 4.48%
B. 4.58%
C. 4.38%
D. 11.36%
E. 1.87%
Answer:
The answer is "Option A".
Explanation:
Using formula:
[tex]\text{Equity Return} = \frac{ \text{Net Income}}{ \text{Total Assets}} \times 100[/tex]
[tex]= \frac{1,077}{17,593} \times 100 \\\\= 0.0612175297 \times 100\\\\= 6.12175297\\\\=6.12 \%[/tex]
[tex]\text{Calculating the Plowback Ratio} \ (b) = 1- \text{Dividend Payout Ratio}[/tex]
[tex]= 1-0.30 \\\\ = 0.70[/tex]
[tex]\text{Internal Growth Rate} = \frac{ROA \times b }{(1-ROA \times b)} \\\\[/tex]
[tex]= \frac{0.0612 \times 0.70}{(1-0.0612\times 0.70)} \\\\= \frac{0.04284}{0.95716} \\\\ =0.044754073 \\\\ =4.47\%[/tex]
Discuss some of the program’s challenges.
https://www.pbs.org/video/need-know-financial-literacy/
Answer:
okay aph development continues with an expression of the rationale or the explanation that the writer gives for how the reader should interpret the information presented in the idea statement or topic sentence of the paragraph. The writer explains his/her thinking about the main topic, idea, or focus of the paragrap
Explanation:
According to economists, all humans have their own "rational self-interest." What does this mean?
A.) They want to help others rather than help themselves.
B.) They will only make rational and logical decisions about purchases.
C.) They want to benefit themselves as much as possible.
D.) They will only make a purchase if it is involving their top three interests.
They want to benefit themselves as much as possible.
Amazon Company uses predetermined departmental overhead rates based on direct labor cost to apply manufacturing overhead to jobs. The predetermined overhead rate for Department A this year was 200% of direct labor cost. The predetermined overhead rate for Department B this year was 50% of direct labor cost. Job Delta, which used labor time in both departments, was charged with the following costs.
Dept A Dept B
Direct materials $50,000 $10.000
Direct labor ? $60.000
Manufacturing overhead $80.000 ?
What was the total manufacturing cost assigned to Job Delta?
a. $270,000
b. $360,000
c. $390.000
d. $480.000
Answer:
a. $270,000
Explanation:
Department A:
Manufacturing overhead=200% of direct labor
80000 = 200% of direct labor
So, direct labor = 80000/200%=$40,000
Department B:
Manufacturing overhead=50% of direct labor
So, Manufacturing overhead = 50%*60000=$30,000
Total manufacturing cost = Material cost + Labor cost + Manufacturing overhead
- Material cost = 50000+10000=$60,000
- Direct labor cost = 40000+60000=$100,000
- Manufacturing overhead = 80000+30000=$110,000
Total manufacturing cost = $60,000 + $100,000 + $110,000
Total manufacturing cost = $270,000
The original purpose of counties was to?
Answer:
The original purpose of the counties was to establish an intermediate governmental structure between that of the cities and that of the states, bringing together several cities in a single entity, the County, which would centralize basic services such as courts, hospitals, universities, etc. and it would represent these cities before the State in a more forceful way than if each city did so on its own initiative.
Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 20192018 Sales$3,220.0$2,800.0 Operating costs excluding depreciation and amortization2,576.02,380.0 EBITDA$644.0$420.0 Depreciation and amortization90.078.0 Earnings before interest and taxes (EBIT)$554.0$342.0 Interest70.861.6 Earnings before taxes (EBT)$483.2$280.4 Taxes (25%)193.3112.2 Net income$289.9$168.2 Common dividends$260.9$134.6 Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 20192018 Assets Cash and equivalents$36.0$31.0 Accounts receivable370.0308.0 Inventories678.0616.0 Total current assets$1,084.0$955.0 Net plant and equipment902.0784.0 Total assets$1,986.0$1,739.0 Liabilities and Equity Accounts payable$315.0$252.0 Accruals269.0224.0 Notes payable64.456.0 Total current liabilities$648.4$532.0 Long-term bonds644.0560.0 Total liabilities$1,292.4$1,092.0 Common stock614.2596.6 Retained earnings79.450.4 Common equity$693.6$647.0 Total liabilities and equity$1,986.0$1,739.0 Write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, if necessary. Negative values, if any, should be indicated by a minus sign. What was net operating working capital for 2018 and 2019
Answer:
Calculation of net operating working capital
Particulars 2018 2019
Current asset A $955 million $1,084 million
Current liability B $532.0 million $648.4 million
Net working capital A-B $423 million $435.6 million