Answer:
The reduction in assets would improve the ROE by 7.81%.
Explanation:
This can be calculated as follows:
Previous equity = (100% - Debt-to-total-capital ratio) * Previous total invested capital = (100% - 39%) * $440,000 = 61% * $440,000 = $268,400
Previous return on equity (ROE) = (Net income / Previous equity) * 100 = ($28,250 / $268,400) * 100 = 10.53%
New equity = (100% - Debt-to-total-capital ratio) * New total invested capital = (100% - 39%) * $252,500 = 61% * $252,500 = $154,025
New ROE = (Net income / New equity) * 100 = ($28,250 / $154,025) * 100 = 18.34%
Change in ROE = New ROE - Previous ROE = 18.34% - 10.53% = 7.81%
Since change in ROE is 7.81% and positive, this implies that the reduction in assets would improve the ROE by 7.81%.
Question Mode Multiple Select Question Select all that apply At the end of the previous year, a customer owed Chocolates R US $500. On January 31 of the current year, the customer paid $900 total, which included the $500 owed plus $400 owed for the current month of January. What would be the journal entry on January 31 that reflects this
Answer:
January 31
Dr Cash $900.
Cr Service revenue $400.
Cr Accounts receivable $500.
Explanation:
Preparation of the journal entry
Based on the information given What would be the journal entry on January 31 that reflects this are :
January 31
Dr Cash $900.
Cr Service revenue $400.
Cr Accounts receivable $500.
According to the substitution effect of labor supply, when the wage rate goes up: Group of answer choices it becomes more costly to consume leisure, so people will work more. it becomes less costly to consume leisure, so people will work more. the opportunity cost of enjoying leisure goes down. firms will hire more workers since people are more willing to work.
According to the substitution effect of labor, firms would hire more workers because people are more willing to work more.
The substitution effect of labor tells us that as income is raised, people would be more willing to give up leisure hours to work more.
This is due to the fact that they would earn more money for the extra hours that they would have spent on leisure.
There would be more willingness to work and the firms would have more people to hire.
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Each of the three independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessor's implicit rate of return.
Situation
1 2 3
Lease term (years) 12 20 4
Lessor's rate of return (known by lessee) 11% 9% 12%
Lessee's incremental borrowing rate 12% 10% 11%
Fair value of lease asset $620,000 $1,000,000 $205,000
Required:
a. Determine the amount of the annual lease payments as calculated by the lessor and above situations.
b. Determine the amount lessee would record as a leased asset and a lease liability for above situations.
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Explanation:
The amount of the annual lease payments as calculated by the lessor and above situations are $86,033.44, $100,501.35, and $60,261.66 respectively. The amount lessee would record as a leased asset and a lease liability for above situations are $620,000, $1,000,000 $205,000 respectively.
What are lease payments?Lease payments are regular payments made to the lessor, who owns the asset, and the lessee, who will utilize it, as per the conditions of a contract. Before the lessee either returns the object or purchases it outright, the lease payments often continue for a predetermined amount of time.
a) For Situation 1:
Formula for calculating annual lease payments is:
Annual lease payments = Fair value of assets ÷ Present value for annuity due.
Where,
Fair Value of Assets of the leased asset = $620,000
Lease term = 12 years
Lessor's rate of return = 11%
The present value of annuity due 12 years at the rate of 11% is 7.2065
Putting in the values in the formula we get:
Annual lease payments = $620,000/7.2065 = $86,033.44
b) Formula for the lease liability = Annual rent payment × present value of annuity due.
Lease liability = $86,033.44 x 7.2065 = $620,000
For Situation 2:
a) The present value of annuity due 20 years at the rate of 9% is 9.9501
Annual lease payments = $100,000/9.9501 = $100,501.35
b) Lease liability = $100,501.35 x 9.9501 = $1,000,000
For Situation 3:
a) The present value of annuity due 4 years at the rate of 12% is 3.4081
Annual lease payments = $205,000/3.4081 = $60,261.66
b) The lease ability = $60,261.66 x 3.4801 = $205,000
Therefore, the amounts that of the lease payment for the lessor and the lessee is determined above.
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Indiana Company produces couches. The fixed monthly cost of production is $8,000, and the variable cost per unit is $65. The couches sell for $180 apiece. Answer these questions: 3 points each 1) For a monthly volume of 300 tables, determine the total cost, total revenue, and profit. 2) Determine the monthly break-even volume for Indiana Company.
Answer: See explanation
Explanation:
1) For a monthly volume of 300 tables, determine the total cost, total revenue, and profit.
Fixed monthly cost = $8000
Variable cost per unit = $65
Selling price = $180 each
Monthly volume = 300
Therefore, the total cost will be
= $8000 + ($65 × 300)
= $8000 + $19500
= $27500
The total revenue will then be:
= Price × Quantity
= $180 * 300 units
= $54000
Total profit will be:
= Sales revenue - Cost
= $54000 - $27500
= $26500
b) Break even volume simply means the volume whereby no profit or loss is incurred. This will be:
= $8000 / ($180 - $65)
= $8000 / $115
= 69.56 units
= 70 units
Abigail has just signed a 5-year lease for her new business. The full annual lease amount is due at the beginning of every year and such cash flows have been agreed to be 20,156 dollars now and the subsequent payments to increase by 5% per year until maturity. Given that the prevailing average market interest rate is 8% per year compounded monthly, compute the present value of this financial asset. (note: round your answer to the nearest cent and do not include spaces, currency signs, or commas)
Answer: $93,088
Explanation:
Rate is compounded monthly which makes it:
= 8% / 12
= 0.6667%
= 0.006667
The payment of $20,156 is to increase yearly at a rate of 5%. Payments are at the beginning of the period so the first payment does not have to be discounted.
[tex]= 20,156 + \frac{20,156 * 1.04}{(1 + 0.006667)^{12} } + \frac{20,156 * 1.04^{2} }{(1 + 0.006667)^{24} } + \frac{20,156 * 1.04^{3} }{(1 + 0.006667)^{36} } + \frac{20,156 * 1.04^{4} }{(1 + 0.006667)^{48} }\\\\= 20,156 + 19,355.65 + 18,587.08 + 17,849.02 + 17,140.27\\\\= 93,088.02[/tex]
= $93,088
What is the present value of the following cash flow stream at a rate of 11.5% per year? Select the correct answer. a. $425.24 b. $419.54 c. $430.94 d. $442.34 e. $436.64
Answer:
the answer to the question would be E
Vanessa Kaiser and Mariah Newman decide to form a partnership by combining the assets of their separate businesses. Kaiser contributes the following assets to the partnership: cash, $25,800; accounts receivable with a face amount of $187,600 and an allowance for doubtful accounts of $5,400; merchandise inventory with a cost of $118,900; and equipment with a cost of $175,800 and accumulated depreciation of $58,200. The partners agree that $6,000 of the accounts receivable are completely worthless and are not to be accepted by the partnership, that $5,700 is = reasonable allowance for the uncollectibility of the remaining accounts, that the merchandise inventory is to be recorded at the current market price $131,400, and that the equipment is to be valued at $104,900.
Required:
Journalize the partnership's entry to record Kaiser's investment.
Answer:
Date Accounts title and Explanation Debit Credit
Cash $25,800
Account receivables(187,600-6,000) $182,200
Merchandise Inventory $118,900
Equipment $104,900
Allowance for Doubtful Accounts $5,700
Kaiser, Capital $426,100
(To record Kaiser Investment in Partnership Entity)
Required information E4-12 and E4-13 Skip to question Bunker makes two types of briefcase, fabric and leather. The company is currently using a traditional costing system with labor hours as the cost driver but is considering switching to an activity-based costing system. In preparation for the possible switch, Bunker has identified two activity cost pools: materials handling and setup. Pertinent data follow: Fabric Case Leather Case Number of labor hours 15,000 8,000 Number of material moves 672 1,428 Number of setups 108 162 Total estimated overhead costs are $393,300, of which $315,000 is assigned to the materials handling cost pool and $78,300 is assigned to the setup cost pool. E4-12 (Algo) Assigning Costs Using Traditional System, ABC System [LO 4-1, 4-3, 4-4, 4-5, 4-6] Required: 1. Calculate the overhead assigned to the fabric case using the traditional costing system based on direct labor hours. 2. Calculate the overhead assigned to the fabric case using ABC. 3. Was the fabric case over- or undercosted by the traditional cost system compared to ABC
Answer:
1. $256,500
2. $132,120
3. The fabric case is over costed by the traditional cost system compared to ABC
Explanation:
1. Calculation for the overhead assigned to the fabric case using the traditional costing system based on direct labor hours.
Traditional costing
Overhead Assigned under traditional costing = 393,300/(15,000+8,000)*15,000
Overhead Assigned under traditional costing = 393,300/23,000*15,000
Overhead Assigned under traditional costing = $256,500
Therefore the overhead assigned to the fabric case using the traditional costing system based on direct labor hours will be $256,500
2. Calculation for the overhead assigned to the fabric case using ABC.
ABC Costing
First step is to calculate the Material handling rate
Material handling rate = 315,000/(672 +1,428)
Material handling rate = 315,000/2,100
Material handling rate = 150 per move
Second step is to calculate the Setup cost
Setup cost=78,300/(108+ 162)
Setup cost = 78,300/270
Setup cost= 290 per setup
Now let calculate the Overhead assigned to ABC
Overhead assigned to ABC = (672*150)+(108*290)
Overhead assigned to ABC=100,800+31,320
Overhead assigned to ABC=$132,120
Therefore the overhead assigned to the fabric case using ABC will be $132,120
3. Based on the above calculation Fabric case is OVER costed with the amount of $256,500 Under traditional costing system compared to ABC.
Coronado Corporation had income from continuing operations of $10,661,000 in 2020. During 2020, it disposed of its restaurant division at an after-tax loss of $190,500. Prior to disposal, the division operated at a loss of $321,600 (net of tax) in 2020 (assume that the disposal of the restaurant division meets the criteria for recognition as a discontinued operation). Coronado had 10,000,000 shares of common stock outstanding during 2020. Prepare a partial income statement for Coronado beginning with income from continuing operations
Answer and Explanation:
The preparation of the partial income statement for Coronado beginning with income from continuing operations is presented below:
Income from continuing operations $10,661,000
Discontinued Operations :
Loss from operations of discontinued restaurant division ($321,600)
After tax Loss from disposal of restaurant division ($190,500)
Net Income $10,148,900
Earning Per Share :
Income from continuing operations [$10,661,500 ÷ 10,000,000] $1.07
Discontinued Operations [$521,100 ÷ 10,000,000] ($0.05121)
Net Income [$10,148,900 ÷ 10,000,000] $1.01489
Stephen discusses with his boss his initial ideas on how to approach his hosting duties. His boss claims he is on the right track, but that he should remember to build goodwill in his remarks. Stephen remembers that this will be the workers' introduction to him, so he needs them to trust him in the role of chief operating officer going forward. Although he will be introducing other speakers during the meeting, he doesn't want to get his goals confused. Select the statement that describes something Stephen should do for a goodwill speech.A. Stephen contacts his boss to ask him what information about himself he would like shared. B. Stephen speaks respectfully about his boss and his positive characteristics. C. Stephen tells the workers that he also believes in fairness and teamwork. D. Stephen conducts research to understand more about the corporate executives.
Answer:
D. Stephen conducts research to understand more about the corporate executives.
Explanation:
Analyzing the information above, it is correct to say that a good presentation should be able to retain the public's attention and positively impact people. For this, it is considered that the letter D is the most relevant option for Stephan to achieve his goals in his speech, because knowing his audience in depth will be a decisive factor to align his presentation with the interests of the audience and thus retain attention and integrate them with what is being said. Therefore, research to understand more about corporate executives will lead Stephan to achieve effectiveness in his presentation.
Write a two-page business summary including the following sections:
a. Company introduction (general introduction about the company)
b. Business model (how does this business work and generate profit)
c. The current information systems configuration in this company if applicable
d. The potential opportunities using Information Technologies as a strategic tool for this company
e. The trend in this particular business or industry in terms of Information technologies
Answer:
The answer is as per the attached document.
Cheers
1. What information is provided by the budget? Specifically, what questions can the bank manager ask of the Operations Department
manager?
2. What information does the static budget fail to provide? Specifically, could the budget information be presented differently to
provide even more insight for the bank manager?
Answer:
Some of the information provided by the budget is...
fixed costs - items such as rent, salaries and financing costs
variable costs - including raw materials and overtime
one-off capital costs - purchases of computer equipment or premises, for example
Some interview questions include:
What would you say is your leadership style?
You have an underperforming team member–how do you handle that?
Your team's morale has been low–how would you go about fixing that?
Tell me about a past project that did not go as planned.
2. One key disadvantage of a static budget is that it is not flexible and so it cannot be changed to take advantage of changes in revenue or expenses as the year proceeds. With a static budget, companies cannot manage the impact of changes, for example, by decreasing a portion of the budget in response to slow sales.
Explanation:
Hopefully this helps!
The toy buyer had the option of ordering stuffed animals directly from the manufacturer or from a nearby wholesaler. The manufacturer will not ship orders for less than $1,200 total list price. Delivery typically requires five weeks, and freight averages 2.5% of total billed cost. Trade discounts on this merchandise are 40% and 10%; terms are 2/10, n/30.
A wholesaler, located in the retailer's area, stocks many of the same stuffed animals. He does not require a minimum order and will deliver at no charge in the area if the order has a billed cost of at least $500. The manufacturer and wholesaler base cost on the same list price; however, the wholesaler sells with trade discounts of 40% and 8% and terms of 1/15. n/30.
Required:
What is the difference in the total net cost (including freight) of merchandise with a total list price of $1, 200 from these two vendors?
Answer:
difference between supplies = $4.68
Explanation:
cost of merchandise from manufacturer if paid within discount period:
$1,200 x (1 - 40%) = $720
$720 x (1 - 10%) = $648
freight cost = $648 x 2.5% = $16.20
discount for early payment = $648 x 2% = $12.96
total cost = $651.24
cost of merchandise from wholesaler if paid within discount period:
$1,200 x (1 - 40%) = $720
$720 x (1 - 8%) = $662.40
discount for early payment = $648 x 1% = $6.48
total cost = $655.92
difference between supplies = $4.68
Cost of merchandise from manufacturer if paid within discount period:
$1,200 x (1 - 40%) = $720 and $720 x (1 - 10%) = $648
Cost of merchandiseFreight cost = $648 x 2.5% = $16.20
Discount for early payment = $648 x 2% = $12.96
Then Total cost is = $651.24
Then the price of merchandise from wholesaler if paid within discount period: $1,200 x (1 - 40%) = $720 and $720 x (1 - 8%) = $662.40
After that discount for early payment is= $648 x 1% = $6.48
Then the full cost is = $655.92
Thus, the right answer is that the difference between supplies = $4.68
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When manager Mariah Pitner delivered the company's financial report to local bankers and analysts, she was acting in a(n) _____ role.
Answer:
When manager Mariah Pitner delivered the company's financial report to local bankers and analysts, she was acting in a(n) _assistant secretary_ role.Before work can begin on the project, the customer must Group of answer choices sign a contract with the contractor that includes the project start date and payment plan. assess the risks for completing the project on time and reduce the award amount if there is any risk. announce who won the bid for the project so the work can start immediately. contact the contractor and say the project is the winner so the work can start immediately.
Answer:
sign a contract with the contractor that includes the project start date and payment plan.
Explanation:
A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.
Mutual assent is a legal term which represents an agreement by both parties to a contract. When two parties to a contract both have an understanding of the parameters, terms and conditions surrounding a contract, it ultimately implies that they are in agreement; this is generally referred to as mutual assent.
Hence, before work can begin on the project, the customer must sign a contract with the contractor that includes the project start date and payment plan.
Each of the following is a characteristic of a defined benefit retirement plan EXCEPT: Question 3 options: The plan assigns the risk of pre-retirement inflation, investment performance, and adequacy of retirement income to the employee. The plan specifies the benefit an employee receives at retirement. The plan has less predictable costs as compared to defined contribution plans. The law specifies the maximum allowable benefit payable from the plan is equal to the lesser of 100% of salary or $230,000 (2020) per year currently
Answer:
Each of the following is a characteristic of a defined benefit retirement plan EXCEPT:
The plan assigns the risk of pre-retirement inflation, investment performance, and adequacy of retirement income to the employee.
Explanation:
No. With a defined benefit retirement plan, the risk of pre-retirement inflation, investment performance, and adequacy of retirement income is never assigned to the employee. Instead, the employer bears this risk. The defined benefit plan always specifies the benefit to which an employee is entitled to at retirement. It also demands that the employee must work for a certain defined period to be entitled to this benefit. By its nature, the defined benefit plan provides a fixed and pre-established benefit for employees. This is why it is preferred by employees.
What should you do first to best use your personal goals as a means for a promotion
Answer:
The solution to this question can be defined as follows:
Explanation:
To achieve any goal, first of all, we need to make a quite high range of the ambition and after preparing the ambition we need to get hard work to achieve that goal. we must not be lazy, in another word we can say that laziness will make a boundary, that we can't pass. If we want to get the goal is to be promoted by using personal goals. that's why we suggest that the separate your personal and work goals, and try to work hard to achieve the goal.
Melissa is conducting a survey of our classmates because our teacher wants the class to learn more about hygiene habits Melissa House develop a list of 10 questions
Which are included in a customer profile?
Select all that apply.
A.)social media messages
B.)socioeconomic status
C.)promotions and prices
D.)attitudinal and behavioral details
E.)marketing strategies
F.)demographic information
Hey there!
I would say the answers are B, C, F
The others do not seem like something that would be in a customer profile.
Hope it helps and have a great day!
The following trial balance was prepared from the ledger accounts of Ricardo Company: RICARDO COMPANY Trial Balance April 30, Year 2 Account Titles Debit Credit Cash $ 71,900 Accounts receivable 36,000 Supplies 2,400 Prepaid insurance 4,200 Land $ 11,000 Accounts payable 10,200 Common stock 100,000 Retained earnings 29,640 Dividends 8,600 Service revenue 70,000 Rent expense 10,200 Salaries expense 32,700 Operating expense 33,600 Totals $ 199,600 $ 220,840 When the trial balance failed to balance, the accountant reviewed the records and discovered the following errors: The company received $590 as payment for services rendered. The credit to Service Revenue was recorded correctly, but the debit to Cash was recorded as $770. A $1,200 receipt of cash that was received from a customer on accounts receivable was not recorded. A $580 purchase of supplies on account was properly recorded as a debit to the Supplies account. However, the credit to Accounts Payable was not recorded. Land valued at $11,000 was contributed to the business in exchange for common stock. The entry to record the transaction was recorded as a $11,000 credit to both the Land account and the Common Stock account. A $800 rent payment was properly recorded as a credit to Cash. However, the Salaries Expense account was incorrectly debited for $800.
Question Completion:
Prepare the corrected Trial Balance of Ricardo Company.
Answer:
RICARDO COMPANY
The corrected Trial Balance April 30, Year 2
Account Titles Debit Credit
Cash $ 72,920
Accounts receivable 34,800
Supplies 2,400
Prepaid insurance 4,200
Land 11,000
Accounts payable $10,780
Common stock 100,000
Retained earnings 29,640
Dividends 8,600
Service revenue 70,000
Rent expense 11,000
Salaries expense 31,900
Operating expense 33,600
Totals $ 210,420 $ 210,420
Explanation:
a) Data and Calculations:
RICARDO COMPANY
Trial Balance April 30, Year 2
Account Titles Debit Credit
Cash $ 71,900
Accounts receivable 36,000
Supplies 2,400
Prepaid insurance 4,200
Land $11,000
Accounts payable 10,200
Common stock 100,000
Retained earnings 29,640
Dividends 8,600
Service revenue 70,000
Rent expense 10,200
Salaries expense 32,700
Operating expense 33,600
Totals $ 199,600 $ 220,840
Cash Account:
Account Titles Debit Credit
Balance $ 71,900
Overstated service revenue 180
Accounts receivable 1,200
Balance $72,920
Totals $73,100 $73,100
Balance $72,920
Accounts Receivable
Account Titles Debit Credit
Balance $36,000
Cash $1,200
Balance $34,800
Totals $36,000 $36,000
Balance $34,800
Accounts Payable
Account Titles Debit Credit
Balance $10,200
Supplies 580
Balance $10,780
Totals $10,780 $10,780
Balance $10,780
Land
Account Titles Debit Credit
Balance $11,000
Correction of error $22,000
Balance $11,000
Totals $22,000 $22,000
Balance $11,000
Salaries Expense
Account Titles Debit Credit
Balance $32,700
Rent Expense $800
Balance $31,900
Totals $32,700 $32,700
Balance $31,900
Rent Expense
Account Titles Debit Credit
Balance $10,200
Salaries Expense 800
Balance $11,000
Totals $11,000 $11,000
Balance $11,000
Match each definition with its related term by selecting the appropriate letter in the drop down provided. There should be only one definition per term. (that is, there are more definitions than terms.)
Definitions:
A. Report the long life of a company in shorter periods.
B. Record expenses when incurred in earning revenue.
C. The time it takes to purchase goods or services from suppliers, sell goods or services to customers, and collect cash from customers.
D. Record revenues when earned and expenses when incurred.
E. Increases in assets or decreases in liabilities from peripheral transactions.
F. An asset account used to record cash paid before expenses have been incurred.
G. Record revenues when earned and measurable (when the company transfers promised goods or services to customers, and in the amount the company expects to receive).
H. Decreases in assets or increases in liabilities from peripheral transactions.
I. Record revenues when received and expenses when paid.
J. The income statement equation.
K. Decreases in assets or increases in liabilities from central ongoing operations.
L. The retained earnings equation.
M. A liability account used to record cash received before revenues have been earned.
1. Expenses
2. Gains
3. Revenue recognition principle
4. Cash basis accounting
5. Unearned revenue
6. Operating cycle
7. Accrual basis accounting
8. Prepaid expenses
9. Revenues − Expenses = Net Income
10. Ending Retained Earnings = Beginning Retained Earnings + Net Income − Dividends Declared
Answer:
A. Going concern
B. Accrual Basis accounting
C. Operating Cycle
D. Cash Basis Accounting
E. Gains
F. Prepaid Expense
G. Revenue recognition principle
H. Expenses
I. Cash basis Accounting
J. Revenue - Expenses = Net Income
K. Expense
L. Ending Retained Earning = Beginning Retained Earning + Net Income - Dividends Declared
M. Unearned Revenue
Explanation:
The definitions for each letter are matched with the accounting terms. The unearned revenue account is used to record the revenue received but services yet to be delivered. This is a liability account in which the company reports any unearned revenue.
You've decided to buy a house that is valued at $1 million. You have $350,000 to use as a down payment on the house, and want to take out a mortgage for the remainder of the purchase price. Your bank has approved your nterest rate (called the $650,000 mortgage, and is offering a standard 30-year mortgage at a 10% fixed nomina loan's annual percentage rate or APR). Under this loan proposal, your mortgage payment will be ___________per month.
a. $7,700.43
b. 7130.03
c. 8841.23
d. 5704.02
Answer:
d. 5704.02
Explanation:
Nper = 30*12 = 360
Rate = 10%/12 = 0.008333
PV = 650,000
Using the MS Excel function:
Monthly payment = PMT(RATE, NPER, -PV)
Monthly payment = PMT(10%/12, 360, -650000)
Monthly payment = $5,704.02
The three dates related to a cash dividend include which of the following:
a. Date of declaration
b. Date of payment
c. Date of issuance
d. Date of record
e. Date of payable
Answer: a. Date of declaration
b. Date of payment
d. Date of record
Explanation:
The three dates that are related to a cash dividend are:
Date of declaration - This is the date that a particular company is being binded to pay its dividend.
Date of payment - This simply means the date when dividend is paid to the stockholders.
Date of record - This is the date for the identification of recipients.
After reviewing the rhetorical fallacies, can you think of a specific time when you heard a speaker employ one of these fallacies? Which fallacy did they use? Why should you avoid fallacies in your own speeches?
Answer:
they can be bad because they can / will confuse people especially the public
A group of middle school students wants to raise money to help build a new school track. They decided to sell donuts before school. Demand is 275 donuts when the donuts are given away free, and the demand drops to 175 donuts when the price is 25 cents per donut. However, the middle school administration is prepared to supply only 150 donuts free of charge but will supply 200 donuts when the price is 50 cents per donut. Assume that the demand and supply functions are both linear functions. What price should the students charge per donut so that there is neither a surplus nor a shortage of donuts
Answer:
25 cent/donuts
Explanation:
Demand function have these two points (275, 0), (175, 25)
Demand function equation:
y - 25 = [tex]\frac{25 - 0}{175-275}[/tex] (x-175)
-100y + 2500 = (x - 175)
-4y + 100 = x - 175
x + 4y = 100 + 175
x + 4y = 275....................equ 1
Similarly Supply function have these point (150,0), (200, 50)
Supply function equation:
y - 50 = [tex]\frac{50 - 0}{200-150}[/tex](x- 200)
50y - 2500 = x - 200
y - 50 = x - 200
x - y = 200 - 150
x - y = 150
By equation 1 & 2
x + 4y = 275
x - y = 150 ==> x = 150+y
So from equ 1 => x + 4y = 275
=> 150+y+4y = 275
=> 150+5y = 275
=> 5y = 275 - 150
=> 5y = 125
=> y = 25
So, the price that the students should charge per donut so that there is neither a surplus nor a shortage of donuts is 25 cent/donuts
An article in The Globe and Mail, February 16, 2002, reported that IBM used the $300 million proceeds of a sale of one of its business units to reduce operating expenses in its fourth quarter 2001 income statement. This added about 8 cents per share to its fourth quarter earnings. As a result, IBM beat analysts' forecasts by 1 cent per share.
IBM defended its treatment by claiming that buying and selling businesses is a normal business practice, and that most of the sale proceeds related to intellectual property that it had developed. The article quotes a Merrill Lynch analyst as saying, "Our only concern is that the company could have done more to call out the magnitude of the transaction." According to the article, IBM's share price fell by 4% as a result of this news.
While not mentioned in this article, the SEC opened a preliminary inquiry into IBM's accounting practice, expressing concerns that IBM had let it be known that the reason for its higher operating earnings was tight cost controls, rather than the sale proceeds. This inquiry was subsequently dropped, but the SEC issued a bulletin reminding firms to report gains or losses on asset sales separately from operating costs.
Required
Explain why IBM's share price dropped following the Merrill Lynch analyst's comment and the news of the SEC's preliminary inquiry.
Answer:
The sale of business units are one time events that should not be common. If the only way that IBM can show profit is by selling business divisions, in a very short time it will run out of divisions to sell. A company's intrinsic value is given by its cash flows, especially the operating cash flow.
Onisha manages a group of apartment complexes and is trying to create a budget for next year. Below are the monthly expenses for the last three years, in thousands of dollars. Help her by finding the appropriate seasonal indices for April and October.
Year 1 Year 2 Year 3
January 170 180 195
February 180 205 210
March 205 215 230
April 230 245 282.3
May 240 265 290
June 315 330 390
July 360 400 420
August 290 335 330
September 240 260 290
October 240 270 294.8
November 230 255 280
December 195 220 250
Select one:
a. April = 0.24, October = 268.27
b. None of the other options.
c. April = 2.86, October = 1.01
d. April = 0.95, October = 1.01
e. April = 252.43, October = 268.27
f. April = 0.95, October = 22.36
Answer:
Onisha
The appropriate seasonal indices for April and October are:
d. April = 0.95, October = 1.01
Explanation:
a) Data and Calculations:
Year 1 Year 2 Year 3 Yearly Averages
January 170 180 195 181.67
February 180 205 210 198.33
March 205 215 230 216.67
April 230 245 282.3 252.43
May 240 265 290 265
June 315 330 390 345
July 360 400 420 393.33
August 290 335 330 318.33
September 240 260 290 263.33
October 240 270 294.8 268.27
November 230 255 280 255
December 195 220 250 221.67
Total average 264.92 (31,79.03/12)
April = 252.43/264.92 = 0.95
October = 268.27/264.92 = 1.01
b) A season index is defined by the value for the season divided by the seasonal average.
A consulting engineer has been engaged to advise a town how best to proceed with the construction of a 200,000 water supply reservoir. Since only 120,000 of storage will be required for the next 25 years, an alternative to building the full capacity now is to build the reservoir in two stages. Initially, the reservoir could be built with 120,000 of capacity and then, 25 years hence, the additional 80,000 of capacity could be added by increasing the height of the reservoir. Estimated costs are as follows construction cost, and annual maintenance cost, build in 2 stages first stage 120,000 reservoir $14'200,000 $75,000; second stage add 80,000 of capacity $120600,000 and $25,000 additional construction cost build in full capacity now 200,000 reservoir $22'400,000 and $100,000 if the interest is computed at 4%, which construction plan is preferred?
Answer:
Single stage construction
PW of Cost = $22,400,000 + 100,000(P/A, 4%, 25)
PW of Cost = $22,400,000 + 100,000(15.622)
PW of Cost = $22,400,000 + $1,562,200
PW of Cost = $23,962,200
Tow stage construction
PW of cots = $14,200,000 + $75,000(P/A, 4%, 25) + $12,600,000(P/F, 4%, 25)
PW of cost = $14,200,000 + $75,000(15.622) + $12,600,000(0.3751)
PW of cost = $14,200,000 + $1,171,650 + $4,726,260
PW of cost = $20,097,910
Conclusion: We should choose two stage construction as it has lesser Present worth of cost.
Here we preferred two stage construction as it has lesser Present worth of cost.
Calculation of the selection of the construction plan:For Single stage construction
PW of Cost = $22,400,000 + 100,000(P/A, 4%, 25)
= $22,400,000 + 100,000(15.622)
= $22,400,000 + $1,562,200
= $23,962,200
Now
For Tow stage construction
PW of cots = $14,200,000 + $75,000(P/A, 4%, 25) + $12,600,000(P/F, 4%, 25)
= $14,200,000 + $75,000(15.622) + $12,600,000(0.3751)
= $14,200,000 + $1,171,650 + $4,726,260
= $20,097,910
Learn more about cost here: https://brainly.com/question/24230268
On January 1, 2019, Cullumber Corporation acquired machinery at a cost of $1650000. Cullumber adopted the straight-line method of depreciation for this machine and had been recording depreciation over an estimated life of ten years, with no residual value. At the beginning of 2022, a decision was made to change to the double-declining balance method of depreciation for this machine. Assuming a 30% tax rate, the cumulative effect of this accounting change on beginning retained earnings, is
Answer:
$0
Explanation:
Since in the given situation there is a depreciation method change i.e. from the straight-line method to double-declining method so there would be no impact restrospectively.
Hence, there would be no cumulative impact as it creates the impact prospectively
So the impact would be zero
Which of the following is a reason companies are hiring temporary workers more often than in the past?
A- Temporary employees work harder than permanent employees.
B- Temporary workers are more loyal to the company, thereby making them more productive.
C- Most companies provide temporary workers with very few, if any, benefits.
D- Workers seeking temporary employment are better educated than those seeking permanent employment