If annualized interest in the U.S. and France are 9% and 13%, respectively, and the spot value of the French franc is $0.1109, then at what 180-day forward rate will interest rate parity hold

Answers

Answer 1

Answer:

0.1130 FF/$

Explanation:

Spot value = 0.1109 FF/$

Interest rate in US for 180 days = 9%*180/365 = 0.044384

Interest rate in France for 180 days = 13%*180/365 = 0.06411

Forward rate = Spot value*(1+Interest rate in US)/(1+Interest rate in France)

Forward rate = 0.1109*(1+0.06411)/(1+0.044384)

Forward rate = 0.1109*(1.06411/1.044384)

Forward rate = 0.1109* 1.018888      

Forward rate = 0.1130 FF/$


Related Questions

Four Types of Organizational Culture Organizational culture is a system of shared beliefs and values that develops within an organization and guides its members' behavior. Culture can vary considerably across organizations, with each placing different emphases on risk-taking, treatment of employees, teamwork, rules and regulations, conflict and criticism, and rewards. This activity is important because different types of cultures are better suited to achieving different strategic goals, and managers can use this knowledge to their benefit.
The goal of this activity is to challenge your knowledge of the four types of organizational culture.
Read the description of an organization's culture and write each name to the type of organizational culture it best depicts.
Daveed Miranda Olivia
Caprice Joseph Aaron
Wallace Leslie
Clan Adhocracy Hierarchy Market
1. Daveed- Works for a real estate company with a culture that values employees'ability to focus on the customer, react quickly, an deliver quality work on time.
2. Miranda- works for a new entrepreneurial company that is characterized as being creative, making innovative products, and being adaptable in the marketplace.
3. Olivia works for an investment firm with a culture that focuses on productivity and profits over employee development and satisfaction.
4. Caprice- works for a regional airline whose corporate culture encourages employees to collaborate and become involved to increase their job satisfaction.
5. Joseph- works for a telecommunications company whose culture devotes considerable resources to hiring and developing employees.
6. Aaron- works for a computer company whose corporate culture is characterized by a formalized, structured work environment aimed at achieving effectiveness.
7. Wallace- works for an advertising agency whose corporate culture encourages employees to take risks and experiment with new ways of getting things done.
8. Leslie- works for a pharmaceutical company with a corporate culture that institutes a variety of control mechanisms to measure efficiency, timeliness, and reliability in the creation and delivery of products.

Answers

Answer:

1. Daveed = Market

2. Miranda = Adhocracy

3. Olivia  = Market

4. Caprice =  Clan

5. Joseph = Clan

6. Aaron  = Hierarchy

7. Wallace = Adhocracy

8. Leslie = Hierarchy

Explanation:

Adhocracy: The characteristics of this corporate culture include experimentation, innovation, creativity, entrepreneurship, individual ingenuity and freedom, with high energy and risk-taking.

Hierarchy:  This organizational culture is characterized by structure, control, formal workplace, institutional procedures, organized leadership, and consistency.

Market: The market culture is competitive, results-oriented, and tough and demanding leaders, who care only for profits.

Clan: A clan culture prevails where individuals are treated like parts of a big family with high collaboration, teamwork, communication, and consensus.

For each of the following scenarios, indicate whether we would use time series or cross-sectional data.
ITEMS
A. TO DETERMINE IF ENROLLMENT IN HIGHER EDUCATION IS INCREASING.
B. TO COMPARE THE CURRENT PRICE OF A GALLON OF GASOLINE ACROSS DIFFERENT GAS STATIONS IN LOS ANGELES, CA.
C. TO SEE IF THERE ARE DIFFERENCES IN THE AVERAGE NUMBER OF CALORIES CONTAINED IN SCHOOL LUNCHES SERVED IN EACH OF THE FIFTY STATES ON DECEMBER 1, 2015.
D. TO COMPARE THE INSECT POPULATION IN A GEOGRAPHIC REGION BEFORE AND AFTER AN INSECTICIDE WAS APPLIED.

Answers

Answer:

A. Time-Series data

B. Cross-sectional data

C. Cross-sectional data

D. Time-Series data

Explanation:

For Your Understanding:

If the time period is single then use Cross-sectional data.

If their are multiple time periods then use time-series.

A. To determine whether or not the enrollment in higher education is increasing we will use time-series data because enrollment of students is a periodical event and occurs every year. So this means periodic study would be better with time-series data.

B. For comparing the current price of a gallon of gasoline across different gas stations in Los Angeles, CA: we are considering prices in a single time period. Thus the we will use cross-sectional data.

C. For finding see any differences in the average number of calories contained in school lunches served in each of the fifty states on December 1, 2015: we are considering a single time period. Thus we will use here cross-sectional data.

D. To find out the insect population and comparing them with insect population in a geographic region before and after insecticide was used: we will consider two time periods. As the time periods are more than one, hence we will use time-series data here.

Marin Company produces two software products (Cloud-X and Cloud-Y) in two separate departments (A and B). These products are highly regarded network maintenance programs. Cloud-X is used for small networks and Cloud-Y is used for large networks. Marin is known for the quality of its products and its ability to meet dates promised for software upgrades. Department A produces Cloud-X, and department B produces Cloud-Y. The production departments are supported by two support departments, systems design and programming services. The sources and uses of the support department time are summarized as follows:_______.
To Total
Department Department Labor
From Design Programming A B Hours
Design - 5,000 1,000 9,000 15,000
Programming 400 - 600 1,000 2,000
The costs in the two service departments are as follows:_______.
Design Programming
Labor and materials (all variable) $ 50,000 $ 36,000
Depreciation and other fixed costs 40,000 4,000
Total $ 90,000 $ 40,000
Required:1. Determine the total support costs allocated to each of the producing departments using (a) the direct method, (b) the step method (design department goes first), and (c) the reciprocal method? (Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.)2. The company is considering outsourcing programming services to DDB Services Inc. for $52.00 per hour. Should Marin do this?Note: there's 2 requirements , please make sure you do both with explaination :)

Answers

Answer and Explanation:

You just deposited $3,000 in a bank account that pays a 4.0% nominal interest rate, compounded quarterly. If you also add another $5,000 to the account one year (4 quarters) from now and another $7,500 to the account two years (8 quarters) from now, how much will be in the account three years (12 quarters) from now

Answers

Answer:

Total FV= $16,599.29

Explanation:

We will calculate each investment separately, and then the total future value.

FV= PV*(1+i)^n

Deposit 1:

PV= 3,000

n= 12

i= 0.04/4= 0.01

FV= 3,000*(1.01^12)

FV= $3,380.48

Deposit 2:

PV= $5,000

n= 8

i= 0.01

FV= 5,000*(1.01^8)

FV= $5,414.28

Deposit 3:

FV= 7,500*(1.01^4)

FV= $7,804.53

Total FV= $16,599.29

A $2 million jumbo CD is paying a quoted 3.55 percent interest rate on 180-day maturity CDs. How much money will you have at maturity if you invest in the CD

Answers

Answer:

Maturity Value = $2,035,500

Explanation:

$2,000,000 are invested

Interest rate = 3.55 %

Time = 180 days

Maturity value = ?

Maturity Value = Amount invested * [1 +( interest * no of days to maturity/360)

Maturity Value = $2,000,000* [1 + (0.0355*180) /360)

Maturity Value = $2,000,000* [1 + (6.39/360)

Maturity Value = $2,000,000* [1 +  0.01775]

Maturity Value = $2,000,000 * 1.01775

Maturity Value = $2,035,500

Note: A Certificate of deposit is an interest bearing time deposit.

The following information is available for Trinkle Company for the month of June:

1. The unadjusted balance per the bank statement on June 30 was $56,518.
2. Deposits in transit on June 30 were $2,340. A debit memo was included with the bank statement for a service charge of $26.
3. A $3,331 check written in June had not been paid by the bank.
4. The bank statement included a $1,050 credit memo for the collection of a note. The principal of the note was $1,015, and the interest collected amounted to $35.

Required:
Determine the true cash balance as of June 30.

Answers

Answer:

$55,527

Explanation:

Calculation to Determine true cash balance as of June 30

Unadjusted balance per the bank statement $56,518

Add: Deposits in transit on June 30 $2,340

Less: Outstanding check ($3,331)

True cash balance as of June 30 $55,527

Therefore true cash balance as of June 30 will be $55,527

Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates:

Activity Cost Pool Activity Rates
Labor-related $7.00 per direct labor-hour
Machine-related $3.00 per machine-hour
Machine setups $40.00 per setup
Production orders $160.00 per order
Shipments $120.00 per shipment
General factory $4.00 per direct labor-hour

Cost and activity data have been supplied for the following products:

J78 B52
Direct materials cost per unit $6.50 $31.00
Direct labor cost per unit $3.75 $6.00
Number of units produced per year 4,000 100
Total Expected Activity J78 B52 Direct labor-hours 1,000 40
Machine-hours 3,200 30
Machine setups 5 1
Production orders 5 1
Shipments 10 1

Required:
Compute the unit product cost of each product listed above.

Answers

First, The unitary production cost J78 is = $15.95

Second The unitary production costB52 is = $45.4

How to Compute the unit Product Cost?

Firstly, we need to allocate overhead to each product that is:

Then Allocated MOH is = Estimated manufacturing overhead rate × Actual amount of allocation base

The cost and activity data of J78:

The Labor-related is = 7.00×1,000= 7,000

Then Machine-related is = 3.00×3,200= 9,600

After that Machine setups is = 40.00×5= 200

Then Production orders is = 160.00×5= 800

Then Shipments is = 120.00×10= 1,200

The General factory is = 4.00×1,000= 4,000

Therefore, The Total overhead is = $22,800

Then the Unitary overhead is = 22,800/4,000= $5.7

The cost and activity data of B52:

The Labor-related is = 7.00×40= 280

Then Machine-related is = 3.00×30= 90

After that Machine setups is = 40.00×1= 40

Then Production orders is = 160.00×1= 160

Then Shipments is  = 120.00×1= 120

After that General factory is = 4.00×40= 160

Therefore The Total overhead is = $850

Then Unitary overhead is = 850/100= $8.5

Now, we calculate the unitary production cost is:

The unitary production cost J78= 6.5 + 3.75 + 5.7= $15.95

The unitary production cost B52= 31 + 6 + 8.5= $45.4

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The following selected accounts from the Bramble Corp.’s general ledger are presented below for the year ended December 31, 2022:

Advertising expense $54,000 Interest revenue $32,000
Common stock 249,000 Inventory 66,000
Cost of goods sold 1,084,000 Rent revenue 24,000
Depreciation expense 124,000 Retained earnings 534,000
Dividends 149,000 Salaries and wages expense 674,000
Freight-out 24,000 Sales discounts 8,600
Income tax expense 69,000 Sales returns and allowances 43,000
Insurance expense 15,000 Sales revenue 2,399,000
Interest expense 69,000

Required:
Prepare a multiple-step income statement.

Answers

Answer:

                                                                           $                              $

Sales Revenue                                                                             2,399,000    

Less:  

Sales return and allowances                        43,000  

Sales discount                                               8,600

                                                                                                     2,347,400

Net sales                                                                                    

Cost of goods sold                                                                        1,084,000

Gross profit                                                                                     1,263,400

Operating expenses;

Advertising expense                                     54,000

Depreciation expense                                  124,000

Freight out                                                     24,000

Insurance expense                                       15,000

Salaries and wages expense                       674,000

Total operating expense                                                               891,000‬

Income from operation                                                                  372,400‬        

Other revenue and gains  

Interest revenue                                           32,000

Rent revenue                                                24,000                

                                                                                                         56,000

Other expenses and loss  

Interest expense                                                                                69,000

Income before income taxes                                                          359,400

Income tax expense                                                                          69,000

Net income                                                                                       290,400‬

Lane Stevens is to retire from the partnership of Stevens and Associates as of March 31, the end of the current fiscal year. After closing the accounts, the capital balances of the partners are as follows: Lane Stevens, $150,000; Cherrie Ford, $70,000; and LaMarcus Rollins, $60,000. They have shared net income and net losses in the ratio of 3:2:2. The partners agree that the merchandise inventory should be increased by $22,300 and the allowance for doubtful accounts should be increased by $1,300. Stevens agrees to accept a note for $100,000 in partial settlement of his ownership equity. The remainder of his claim is to be paid in cash. Ford and Rollins are to share equally in the net income or net loss of the new partnership.
a. Journalize the entry to record the adjustment of the assets to bring them into agreement with current market prices.
b. Journalize the entry to record the withdrawal of Stevens from the partnership.

Answers

Answer: See attachment

Explanation:

a. Journalize the entry to record the adjustment of the assets to bring them into agreement with current market prices.

The journal entry has been prepared and attached.

b. Journalize the entry to record the withdrawal of Stevens from the partnership.

The journal entry has been prepared and attached.

Lovely Lotion Inc. produces three different lotions: hand, body, and foot. The lotions are produced jointly in a mixing process that costs a total of $250 per batch. At the split-off point, one batch produces 80, 40, and 25 bottles of hand, body, and foot lotion, respectively. After the split-off point, hand lotion is sold immediately for $2.50 per bottle. Body lotion is processed further at an additional cost of $0.25 per bottle and then sold for $5.75 per bottle. Foot lotion is processed further at an additional cost of $0.85 per bottle and then sold for $4.00 per bottle. Assume that body and foot lotion could be sold at the split-off point for $3.00 and $3.20 per bottle, respectively.
1. Using the market value at split-off method, allocate the joint costs of production to each product.
2. A lotion manufacturing company produces three types of lotions. After the split-off point the company continues to sell the body lotion and makes $0.25 profit per bottle. The foot lotion generates $0.05 loss per bottle. Which lotion should be continued after the split-off point?
A. Hand lotion.
B. Body lotion.
C. Foot lotion.
D. Body and foot lotion.
3. Allocate the joint costs of production to each product using the net realizable value method.

Answers

Answer:

1) Hand lotion :  Joint cost = $250

body lotion : joint cost = $250

foot lotion : Joint cost = $250

2) Body lotion

The joint costs of production for each product is : $250

Explanation:

cost per batch = $250

At spit off point

one batch produces : 80 bottles of hand lotion, 40 body lotions, 25 foot lotion

After spit-off point : Hand lotion is $2.5 per bottle

cost of further processing of body lotion  = $0.25

value of body lotion = $5.75

cost of further processing of foot lotion = $0.85

market value of foot lotion = $4.00

Assuming that body and foot lotion could be sold at the split-off point for $3.00 and $3.20 per bottle, respectively.

1 ) using the market value at split-off method to allocate the joint costs of production to each product

Hand lotion :  Joint cost = $250

body lotion : joint cost = $250

foot lotion : Joint cost = $250

this is because the joint cost of producing each product in every batch is the same

2) The lotion that should be continued after split-off is  

      Body lotion because the market value after split-off - cost for further production  is better off other lotions ( highest market value after split-off)

i.e : $5.75 - $0.25 = $ 5.50

The joint costs of production for each product is : $250

Year1-Year Forward Rate 15.8% 26.4% 37.1% 47.3% 57.4%What would the yield to maturity be on a four-year zero-coupon bond purchased today

Answers

Answer:

b. 6.65%

Explanation:

Note: The organized question is attached below

Yield of maturity = [(1+forward rate of years 1) * (1+forward rate of years 2) * (1+forward rate of years 3) * (1+forward rate of years 4)]^(1/4) - 1

Yield of maturity = [(1+5.8%) * (1+6.4%) * (1+7.1%) * (1+7.3%)]^(1/4) - 1

Yield of maturity = (1.058 * 1.064 * 1.071 * 1.0730)^(1/4) - 1

Yield of maturity = 1.293649093296^(1/4) - 1

Yield of maturity = 1.06648345438 - 1

Yield of maturity = 0.06648345438

Yield of maturity = 6.6483%

Yield of maturity = 6.65%

The contract drawings prepared by the architect are generally not specific enough to facilitate accurate fabrication of the materials involved. Therefore, to produce the necessary materials for a project, subcontractors and suppliers must provide ________________________ to amplify/clarify the contract drawings.

Answers

Answer:

construction specifications

Explanation:

Construction contracts must always include construction specifications. These specifications refer to what materials, installations and specialized labor is required to perform correctly the building process.

Architects are paid for their blueprints, i.e. their designs. Sometimes an architect can recommend certain materials that fit his/her design, but the contractor is responsible for carrying on the actual construction.

The contractor has to specify which materials will be used and how the construction process will be carried out. E.g. it is not the same to build a house with luxurious materials like expensive floors and ceilings than a normal house.

As operations manager, you are concerned about being able to meet sales requirements in the coming months. You have just been given the following production report: JAN FEB MAR APR Units produced 2,300 1,800 2,800 3,000 Hours per machine 325 200 400 320 Number of machines 3 5 4 4 Find the average of the monthly productivity figures (units per machine hour). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Average productivity 2.06 correct units per machine hour

Answers

Answer: 2.36

Explanation: Hours per machine * # of machines

325 * 3 = 975

Units produced/ Machine Hour

2,300/975 = 2.36

The average of the monthly productivity figures is 2.36.

Who are managers?

"Manager can be defined as a person who is in charge of managing or looking after an organization he is an acting leader who helps in delegating the responsibilities as well as setting the goals also he possesses some leadership qualities that help in running an organization smoothly."

Hours per machine 325

In total there are 3 units that are producing that the operation manager needs to focus on intaking the decision.

Total machine hour is calculated as:

Hours per machine * number of machines

= 325 * 3

= 975

The average of monthly productivity  that the operating manager needs to incur for the smooth running of the business is:

Units produced/ Machine Hour

= 2,300/975

= 2.36

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Prior to safely smoking meat for food preservation, what must an operation have?

Answers

smoking and curing
brxwtse

An operation must have a variance from regulatory authorities prior to smoking meat safely for food preservation.

A variance is simply an official permit that allows entities to do something that is ordinarily forbidden by regulation. Food safety methods that often require a variance include the smoking of food as a method of preservation but not as a flavor enhancer; and more often than not, follows a strict HACCP (hazard analysis critical control point).

Therefore, if an operation (business or organization) intends to smoke food as a preservative method during food processing, they need to seek and gain variance from the local regulatory authority.

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Christiansen Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication 70,000 machine-hours Order Processing 500 orders Other Not applicable The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs. The company has provided the following data concerning its costs: Wages and Salaries $420,000 Depreciation 160,000 Occupancy 200,000 Total $780,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Fabrication Order Processing Other Total Wages and Salaries 60% 20% 20% 100% Depreciation 5% 60% 35% 100% Occupancy 25% 50% 25% 100%
The activity rate for the Order Processing activity cost pool is closest to:_______.
A. $312 per order
B. $676 per order
C. $780 per order
D. $560 per order

Answers

Answer:

D. $560 per order

Explanation:

For computing the activity rate first determine the total allocation cost which is shown below:

The Total allocation cost is

= Wages & salaries + depreciation + occupancy

= $420,000 × 20% + $160,000 × 60% + $200,000 * 0.50

= $84,000  $96,000 + $$100,000

= $280,000

Now the activity rate is

= $280,000 ÷ 500 orders

= $560 per order

hence, the option D is correct

Use the information in the ledger accounts.
Cash Nov. 1 144,000
Nov. 8 40,320
Nov. 25 14,400
Nov. 30 1,680
Land Nov. 8 84,000
Building Nov. 8 70,320
Office Equipment Nov. 15 3,840
Nov. 21 576
Vehicles Nov. 30 11,280
Notes Payable Nov. 25 14,400
Nov. 8 114,000
Nov. 30 9,600
Accounts Payable Nov. 21 576
Nov. 15 3,840
Capital Stock
Nov. 1 144,000
Prepare a trial balance for Avenson Insurance Company dated November 30.

Answers

Answer:

Avenson Insurance Company

Trial Balance as at 30 November

                                                         Debit          Credit

                                                            $                  $

Cash                                                 1,680

Land                                              84,000

Building                                         70,320

Office Equipment                          21 576

Vehicles                                         11,280

Notes Payable                                                    9,600

Accounts Payable                                               3,840

Capital Stock                                                    144,000

Total                                            $188,856   $157,440

Explanation:

A trial balance is prepared as at the end of the financial year. It is used to check the arithmetical accuracy of double entry.

Consider only the balances at the date of financial year end - November 30.

For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply.Transaction C |I |G| X |M|The Federal Aviation Administration expands the runways at Philadelphia International Airport, which is just a few miles from Antonio and Caroline's house.Dmitri buys a new set of tools to use in his plumbing business.Caroline buys a new BMW, which was assembled in Germany.Antonio's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China.Caroline gets a haircut.

Answers

Answer:

The given transactions categorised as being parts of C / I / G / X - M, from GDP

Explanation:

Federal Aviation Administration expands the runways at Philadelphia International Airport, which is just a few miles from Antonio and Caroline's house : Government Purchase

Dmitri buys a new set of tools to use in his plumbing business : Investment

Caroline buys a new BMW, which was assembled in Germany : Imports

Antonio's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China : Export

Caroline gets a haircut : Consumption

In the long run, a decrease in the money supply will
decrease real Gross Domestic Product (GDP).
decrease the price level.
increase real Gross Domestic Product (GDP).
increase the price level.

Answers

Answer:

decrease real Gross Domestic Product (GDP).

Explanation:

GDP represents the total value of a country output. The calculation of GDP using the expensive method is identical to that of the aggregate demand. Aggregate demand is the total of government spending, consumer spending, investment, and net exports. Therefore, GDP and aggregate demand are the same.

A decrease in the money supply leads to firms and households having less money to spend. Reduction in disposable income results in reduced consumer spending, which has adverse effects on aggregate demand. Therefore, reduced money supply results in a decline in consumer spending and reduced aggregate demand, leading to a reduction in a country's output.

Assume you are a business consultant. The owner of a company sends you an e-mail expressing concern that the company is not taking advantage of its discounts offered by vendors. The company currently uses the gross method of recording purchases. The owner is considering a review of all invoices and payments form the previous period. Due to the volume of purchased, however, the owner recognizes that this is time-consuming and costly. The owner seeks your advice about monitoring purchase discounts in the future.

Required:
Provide a response in memorandum form.

Answers

Answer:

i have no clue

Explanation:   :)

when is y'all birthday i'm trying to see if i have the same birthday as somebody

Answers

Answer:

6th October, when is yours..?

Mines is June 15 yurr

Analyzing the effects of transactions on the accounting equation.
On July 1, Alfred Herron established Herron Commercial Appraisal Services, a firm that provides expert commercial appraisals and represents clients in commercial appraisal hearings.
Instructions:
Analyze the following transactions. Record in equation form the changes that occur in assets, liabilities, and owner's equity.
Transactions:
The owner invested $200,000 in cash to begin the business.
Paid $40,500 in cash for the purchase of equipment.
Purchased additional equipment for $30,400 on credit.
Paid $25,000 in cash to creditors.
The owner made an additional investment of $50,000 in cash.
Performed services for $19,500 in cash.
Performed services for $15,600 on account.
Paid $12,000 for rent expense.
Received $11,000 in cash from credit clients.
Paid $15,100 in cash for office supplies.
The owner withdrew $24,000 in cash for personal expenses.
Analyze: What is the ending balance of cash after all transactions have been recorded?

Answers

Answer:

I used an excel spreadsheet to record the accounts using the accounting equation.

What is the ending balance of cash after all transactions have been recorded?

$163,900

The Cash ending balance after the recording of the transactions is $163,900.

Data Analysis:

a. Cash $200,000 Capital, Alfred Herron $200,000

b. Equipment $40,500 Cash $40,500

c. Equipment $30,400 Accounts Payable $30,400

d. Accounts Payable $25,000 Cash $25,000

e. Cash $50,000 Capital, Alfred Herron $50,000

f. Cash $19,500 Service Revenue $19,500

g. Accounts Receivable $15,600 Service Revenue $15,600

h. Rent Expense $12,000 Cash $12,000

i. Cash $11,000 Accounts Receivable $11,000

j. Supplies $15,100 Cash $15,100

k. Drawings, Alfred Herron $24,000 Cash $24,000

Thus, the total cash receipts are $280,500, while the total cash disbursements are $116,600, leaving an ending balance of $163,900 in cash.

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Fidelity Stereo Company has provided the following information regarding its activity-based costing system:Purchasing department costs are allocated based on purchase orders, and the predetermined overhead allocation rate is $77 per purchase order.Assembly department costs are allocated based on the number of parts used, and the predetermined overhead allocation rate is $5 per part.Packaging department costs are allocated based on the number of units produced, and the predetermined overhead allocation rate is $4 per unit produced.Each stereo produced has 50 parts, and the direct materials cost per unit is $70. There are no direct labor costs. Fidelity Stereo has an order for 1200 stereos, which will require 45 purchase orders in all. What is the total cost for the 1200 stereos?a. $392,265b. $303,465c. $388,800d. $307,950

Answers

Answer:

a. $392, 265

Explanation:

Given that:

i. Purchasing department, overhead allocation rate is $77 per purchase order.

ii. Assembly department, overhead allocation rate is $5 per part.

iii. Packaging department, overhead allocation rate is $4 per unit.

iv. Direct material cost is $70 per unit.

v. Each stereo has 50 parts.

Total parts required = 1200 x 50

                                 = 60000

vi. 45 purchase order was required for 1200 stereos.

Thus:

i. $77 x 45 = $3465

ii. $5 x 60000 = $300000

iii. $4 x 1200 = $4800

iv. $70 x 1200 = $84000

Therefore,

total cost for 1200 stereos = $3465 + $300000 + $4800 + $84000

                                            = $392, 265

The following selected transactions were completed by Air Systems Company during January of the current year. Air Systems Company uses the periodic inventory system.
Jan. 2 Purchased $18,200 of merchandise on account, FOB shipping point, terms 2/15, n/30.
5 Paid freight of $190 on the January 2 purchase.
6 Returned $2,750 of the merchandise purchased on January 2.
13 Sold merchandise on account, $37,300, FOB destination, 1/10, n/30. The cost of goods sold was $22,400.
15 Paid freight of $215 for the merchandise sold on January 13.
17 Paid for the purchase of January 2 less the return and discount.
23 Received payment on account for the sale of January 13 less the discount.
Journalize the entries to record the transactions of Air Systems Company.

Answers

Answer:

Date      Account Titles and Explanation         Debit      Credit

2-Jan     Purchase                                            $18,200

                    Accounts payable                                          $18,200

5-Jan     Freight In                                             $190

                     Cash                                                                $190

6-Jan     Accounts payable                               $2,750

                     Purchased return and allowance             $2,750

13-Jan   Account receivable                            $37,300

                   Sales                                                                $37,300

             Cost of goods sold                              $22,400

                    Merchandise Inventory                                   $22,400

15-Jan    Delivery expenses                               $215

                     Cash                                                               $215

17-Jan     Account payable                                $15,450

                      Purchase discount                                       $309

                       Cash                                                             $15,141

23-Jan    Cash                                                     $36,927

               Sales discount                                     $373

                     Account receivables                                     $37,300

The amount of cash received = $37,300 - {$37,300*1%} = 36,927

The amount of sale discount  = $37,300 - $ 36,927 = $373

A company is considering two mutually exclusive expansion plans. Plan A requires a $40 million expenditure on a large-scale integrated plant that would provide expected cash flows of $6.39 million per year for 20 years. Plan B requires a $13 million expenditure to build a somewhat less efficient, more labor-intensive plant with an expected cash flow of $2.91 million per year for 20 years. The firm's WACC is 9%.Calculate each project's NPV. Round your answers to two decimal places. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55.Plan A $ millionPlan B $ millionCalculate each project's IRR. Round your answer to two decimal places.Plan A %Plan B %Graph the NPV profiles for Plan A and Plan B and approximate the crossover rate to the nearest percent.Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to the nearest hundredth.%

Answers

Answer:

Project A:

initial outlay -$40 million

cash flows $6.39 million for 20 years

PV of cash flows = $6,390,000 x 9.1285 (PV annuity factor, 9%, 20 periods) = $58,331,115

NPV = -$40,000,000 + $58,331,115 = $18,331,115 ≈ $18.33 million

IRR = 15%

 

Project B:

initial outlay -$13 million

cash flows $2.91 million for 20 years

PV of cash flows = $2,910,000 x 9.1285 (PV annuity factor, 9%, 20 periods) = $26,563,935

NPV = -$13,000,000 + $26,563,935 = $13,563,935 ≈ $13.56 million

IRR = 22%

Crossover rate = 11.4%

I solved the cross over rate the following way:

project A       project B       difference

-40                    -13         -27

6,39  2,91   3,48

6,39  2,91   3,48

6,39  2,91   3,48

6,39  2,91   3,48

6,39  2,91   3,48

6,39  2,91   3,48

6,39  2,91   3,48

6,39  2,91   3,48

6,39  2,91   3,48

6,39  2,91   3,48

6,39  2,91   3,48

6,39  2,91   3,48

6,39  2,91   3,48

6,39  2,91   3,48

6,39  2,91   3,48

6,39  2,91   3,48

6,39  2,91   3,48

6,39  2,91   3,48

6,39  2,91   3,48

6,39  2,91   3,48

Using a financial calculator or excel spreadsheet, find the IRR of the difference and that is the crossover rate (discount rate at which both projects have the same NPV).

If a company sold $1,000 worth of goods in a period, the closing entry for the
revenue accounts would show a
A. $1,000 credit to Sales Expense
B. $1,000 debit to Income Summary
C. $1,000 debit to Sales Revenue
D. $1,000 credit to Sales Revenue

Answers

Answer:

Explanation:C. $1,000 debit to sales revenue

Answer:$1,000 debit to sales revenue

Explanation:

Your monthly mortgage payment on your house is $593.90. It is a 30 year mortgage at 7.8% compounded monthly. How much did you borrow

Answers

Answer:

The amount borrowed is $82,500

Explanation:

The computation of the amount borrowed is shown below:

But before that we do the following calculations

Total Periods is

= 30 × 12

= 360

Interest Rate = 7.8% ÷ 12 = 0.65%

Now

Amount Borrowed is

= $593.90 ×  (PVA $1 for 360 Periods at 0.65%)

= $593.90 × (138.913874 )

= $82,500

Hence the amount borrowed is $82,500

PLEASE HELP What platforms do digital media campaigns use to reach customers?

Question 1 options:

Websites


Social Media


Live Chats


All of the Above

Answers

The answer is All of the Above

In general, research and development costs for projects other than software development should be: A. None of the answer choices are correct. B. Expensed if unsuccessful; capitalized if successful. C. Expensed in the period they are determined to be unsuccessful. D. Expensed in the period they are determined to be successful. E. Deferred pending determination of success.

Answers

Answer:

Research and development costs must be expended during the period that they occur, they are not capitalized. Whether the project is successful or not does not affect the expensing of the R&D costs.

Both options C and D are correct:

C. Expensed in the period they are determined to be unsuccessful. D. Expensed in the period they are determined to be successful.

Explanation:

On the other hand, software companies are allowed to capitalize some (not all) R&D costs.

During its first year of operations, Drone Zone Corporation (DZC) bought goods from a manufacturer on account at a cost of $55,000. DZC returned $8,500 of this merchandise to the manufacturer for credit on its account. DZC then sold $43,000 of the remaining goods at a selling price of $69,600. DZC records sales returns as they occur and then records estimated additional returns at year-end. During the year, customers returned goods that had been sold at a price of $7,300. These goods were in perfect condition, so they were put back into DZC’s inventory at their cost of $4,500. At year-end, DZC estimated $9,510 of current year merchandise sales would be returned to DZC in the following year; DZC estimates $5,800 as its cost of this merchandise.

Required:
Prepare journal entries to record DZC's transactions and estimates, assuming DZC uses a perpetual inventory system.

Answers

Answer:

Explanation:

                            Journal Entries

Event       Account Title and Explanation          Debit          Credit

1                Inventory (or merchandise)              $ 55,000  

                Accounts Payable                                                $ 55,000

                To record the purchase on account

2              Accounts Payable                             $ 8,500

              Inventory (or merchandise)                                  $ 8,500  

               To record return the merchandise

3.            Cash   ( or Accounts receivable)      $69,600

              Sales Revenue                                                      $ 69,600

                To record sales revenue

4.            Cost of goods sold                               $43,000

              Inventory  (or merchandise inventory)                 $43,000

                To record cost of goods sold

5.            Sales return and allowances               $7,300

              Cash  (or Accounts receivable)                             $7,300

                To record the sales return

6.          Inventory (or merchandise Inventory)  $ 4,500

            Cost of goods sold                                                     $4,500

            To record the reversal of  COGS (Cost of goods sold)

7.          Sales return and allowances                $ 9510

            Allowances  for sales return                                        $9510

            To record the allowances for the estimated return

8.        Inventory - Estimated Return                  $5,800

           Cost of goods                                                               $5,800

         To record the allowances for the estimated -

         return of the cost of goods sold

1. What, historically, have been Apple's competitive advantages in the personal computer market (compared to other PC makers)?

Answers

There have been many competitive advantages that have allowed Apple to be a consistent leader in the PC market. One competitive advantage has been their innovative spirit. ... The superior software allowed Apple to enter the Mac into new markets, desktop publishing and education.
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