Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.46 million. The fixed asset falls into the three-year MACRS class. The project is estimated to generate $2,000,000 in annual sales, with costs of $711,000. The project requires an initial investment in net working capital of $220,000, and the fixed asset will have a market value of $300,000 at the end of the project.
1. If the tax rate is 35 percent, what is the project's Year 0 net cash flow?
2. If the required return is 16%, what is the project's NPV?

Answers

Answer 1

Answer:

1) initial outlay = $2,460,000 + $220,000 = $2,680,000

2)

depreciation expense year 1 = $819,918

depreciation expense year 2 = $1,093,470

depreciation expense year 2 = $364,326

book value at end of year 3 = $182,286

net cash flow year 1 = [($2,000,000 - $711,000 - $819,918) x 0.65] + $819,918 = $1,124,821.30

net cash flow year 2 = [($2,000,000 - $711,000 - $1,093,470) x 0.65] + $1,093,470 = $1,220,564.50

net cash flow year 3 = [($2,000,000 - $711,000 - $364,326) x 0.65] + $364,326 = $965,364.10

terminal value (year 3) = [($182,286 - $300,000) x .65] + $220,000 = $143,485.90

NPV = -$92,854.95


Related Questions

Consumer Choice and Demand:
Suppose Karen is planning a trip to Hawaii. Her research indicates that the average price of a hotel room is $250 per night. Karen calls one hotel and they tell her that they are offering a special rate for rooms on the thirteenth floor. Karen is deeply superstitious and knows that staying on the thirteenth floor will cause her to experience negative utility. What is the maximum amount that Karen should pay for a room on the thirteenth floor? Now suppose that Karen books a room at a different hotel, but upon checking in they tell her there are only rooms available on the thirteenth floor. She paid $250 a night for the room and it is non-refundable. However, there is a hotel across the street where she can pay for a room on the tenth floor.

Answers

Answer:

She can pay a maximum of $212.50

Explanation:

Average price for hotel room is $250 per night

The hotel is offering a discount of 15% on the hotel room price.

If Karen chooses a room at thirteenth floor she can only pay up to $212 for a room per night.

When Karen has paid $250 for a hotel room she gets to know that there is no availability of a room on the floors below thirteenth floor. The price is non refundable. She can ask the hotel for any extra services which can compensate her stay at thirteenth floor.

Mr. Jernigan owns a piece of land on which he grows corn. Corn production annually requires ​$ in​ seed, ​$ in​ fertilizer, and ​$ in pesticides. Mr. Jernigan uses his own labor to grow the corn and therefore hires no workers. If Mr. Jernigan did not use his time to grow​ corn, he would instead be able to sell​ insurance, earning ​$ per year. Suppose another farmer has just offered to pay Mr. Jernigan rent of ​$ per year for use of the land. If Mr. Jernigan refuses to rent the land to another​ farmer, then what will be his accounting costs from farming corn himself on his​ land? What will be his economic​ costs?

Answers

Answer:

$21,000

$55,000

Explanation:

Here is the complete question :

Mr. Jernigan owns a piece of land on which he grows corn. Corn production annually requires $6,000 in seed, $9,000 in fertilizer, and $6,000 in pesticides. Me. Jernigan uses his own labor to grow the corn and therefore hires no workers. If Mr. Jernigan did not use his time to grow corn, he would instead be able to sell insurance, earning $35,000 per year.

Suppose another farmer has just offered to pay Mr Jernigan rent of $20,000 per year for use of this land.

If Mr. Jernigan refuses to rent the land to another farmer, then what will be his accounting costs from farming corn himself on this land? What will be his economic costs?

Accounting cost or explicit cost includes the amount expended in running the business. Accounting cost is used in calculating accounting profit. They include :

cost of the seed cost of fertilizer cost of pesticides

Accounting cost =  $6,000 +  $9,000+  $6,000 =  $21,000

Economic cost or implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives. Economic costs and accounting cost is used in calculating economic profit. Economic cost include :

amount he would have earned selling issuance amount he would have earned if he rented out the land

Economic cost =  $35,000 +  $20,000 = $55,000

what are the financial resources of netflix​

Answers

Netflix Inc. (NFLX) is a media company that offers consumers the ability to buy movie and TV entertainment services. Though the company has since adapted to a largely subscription-based model allowing customers to watch streaming television and movies online, Netflix still offers its original DVD service. Since the fourth quarter 2019, Netflix operates as a single business segment, no longer reporting across domestic streaming, international streaming, and domestic DVD segments.1     In recent years, competition in the streaming media business has grown fierce, with companies including The Walt Disney Co. (DIS), Amazon.com Inc. (AMZN), and Apple Inc. (AAPL) launching services to rival Netflix.on:

Assume the following: The variable portion of the predetermined overhead rate is $1.50 per direct labor-hour. The standard labor-hours allowed per unit of finished goods is 3 hours. The actual quantity of labor hours worked during the period was 44,000 hours. The total actual variable manufacturing overhead cost for the period was $63,000. The company produced 15,000 units of finished goods during the period. What is the variable overhead rate variance

Answers

math-way might be able to help!

Possibly

The variable overhead rate variance or  spending variance is 1500.

What is variable overhead rate variance?

The difference between the variable manufacturing overhead that actually occurred and the variable manufacturing overhead that was anticipated given the number of hours worked is known as the variable overhead rate variation or spending variance.

The term "variable overhead efficiency variance" refers to both the impact of the discrepancy between the actual manufacturing time and the projected manufacturing time. Variations in production efficiency are the cause of it.

Variable overhead efficiency variance= Standard overhead rate x (Actual hours - Standard hours)

Standard quantity= 3* 15,00

                              = 45,000 hours

Actual quantity= 44,000 hours

Standard rate= $1.50

Variable overhead variance= 1000* $1.50

                                                              = 1500

To learn more about variable overhead rate variance

https://brainly.com/question/15085917

#SPJ5

The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July:
Cash balance according to the company's records at July 31, $18,410.
Cash balance according to the bank statement at July 31, $19,540.
Checks outstanding, $3,740.
Deposit in transit, not recorded by bank, $3,000.
A check for $270 issued in payment of an account was erroneously recorded in the check register as $720. Bank debit memo for service charges, $60.
A. Prepare a bank reconciliation.
B. If the balance sheet is prepared for Mathers Co. on July 31, what amount should be reported for cash?

Answers

Answer:

Part A

Nakajima Co

Bank reconciliation as at July 31

Balance as per Bank Statement               $19,540

Add Outstanding Lodgments                    $3,000

Less Unpresented Checks                       ($3,740)

Balance as per Cash Book                       $18,800

Part B

Amount to be reported as cash is $18,800

Explanation:

A Bank reconciliation statement is used to check the accuracy of the Cash Book balance.

The Updated Cash Book after the items that are in Bank Statement but not in Cash Book must always show the same amount as with the Bank Reconciliation Statement.

New shale gas deposits are found in North Dakota :
A. Long-run aggregate supply shifts.
B. Short-run aggregate supply shifts,
C. Both shift.
D. Neither shifts
Hot weather leads to lower crop yields in the Midwest.
A. long run agregate supply shifts.
B. Short-run agregate supply shifts.
C. Both shift
D. Neither shifts

Answers

Answer and Explanation:

When the deposits with respect to new shale gas found in north dakota so there would be the both shifts i.e. long run  aggregate supply and the short run aggregate supply

And on the other hand when the hot weather would lead to less crop in the midwest so there should be the shift in the short run aggregate supply

Therefore the same would be considered and relevant too

explain root mean square speed in the context of gas laws​

Answers

Answer:

The root-mean-square speed is the measure of the speed of particles in a gas, defined as the square root of the average velocity-squared of the molecules in a gas. ... The root-mean-square speed takes into account both molecular weight and temperature, two factors that directly affect the kinetic energy of a material.

Can someone help me please

What are 7 or more ways to have good credit




Answers

Answer:

Only Borrow What You Can Afford. Jose Luis Pelaez / Getty Images. ...

Use Only a Small Amount of the Credit You Have Available. People Images / Getty Images. ...

Start With Only One Credit Card. ...

Pay Your Credit Card Balance in Full. ...

Make All Your Payments on Time. ...

If You Carry a Balance, Do It the Right Way. ...

Let Your Accounts Age.

Explanation:

In a small, closed economy, national income (GDP) is $400.00 million for the current year. Individuals have spent $150.00 million on the consumption of goods and services. They have paid a total of $200.00 million in taxes, and the government has spent $150.00 million on goods and services this year. Use this information and the national income identity to answer the questions. How much is spent on investment in this economy

Answers

Answer: $100 million

Explanation:

National Income (GDP) for a close nation is calculated as:

= Consumption + Investment + Government spending

Making investment the subject would give us:

Investment = GDP - Consumption - Government spending

= 400 - 150 - 150

= $100 million

g It is claimed that 1800 gallons of water are needed to produce one pound of beef, i.e., to grow the crops that feed the cattle and to provide the animals with drinking water. This water _______. Group of answer choices is permanently removed from the water cycle remains in the water cycle, but is forever polluted and thus no longer available for potable water usage remains in the water cycle and can be cleaned for future water usages None of these

Answers

Answer: remains in the water cycle and can be cleaned for future water usages.

Explanation:

Water never really leaves the earth as it just renters the water cycle where it can be cleaned and used fir future demand.

The water that was used to water the plants, will be lost to the atmosphere through evapotranspiration where it will condense and fall back as rain eventually.

The water the cattle drank will come back into the water cycle as urine and sweat where it can then be cleaned and used again for future demand. For instance, we are still drinking water that was drunk by dinosaurs.

The nations of Grapefruit Land and Peachland produce grapefruits and peaches. In Grapefruit And, there are 650,000 hours of labor available in a month, and it takes 2 hours of labor to produce a barrel of grapefruits, and 4 hours of labor to produce a crate of peaches. In Peachland, there are 350,000 hours of labor available in a month, and it takes 1 hour of labor to produce a barrel of grapefruits and 2 hours of labor to produce a crate of peaches.

Required:
a. Which country has an absolute advantage in each good?
b. What is the opportunity cost of a crate of peaches in Grapefruitland?
c. What is the opportunity cost of a crate of peaches in Peachland?
d. Which country has a comparative advantage in each good?

Answers

Answer:

Peachland has absolute advantage in the production of grape fruis and peaches

grapefruits = 2

peaches  = 0.5

Peachland

grapefruits = 2

peaches  = 0.5

None of the countries have a comparative adantage in the production of either goods

Explanation:

You received a request to create an urgent presentation with predesigned and preinstalled elements. Which option will you use?
You will use the------------option to create an urgent presentation using predesigned and preinstalled elements.

Answers

Answer:

Template

Explanation:

A TEMPLATE can be seen as a document that has already been previously designed and formatted which enables a person or an individual to easily create his or her own presentation or a requested emergency presentation instead of starting to create the presentation from the beginning or from the scratch which will inturn help to save a lot of time thereby leading to efficiency.

Therefore based on the information given the option a person or an individual will you use to help create an urgent presentation is called TEMPLATE.

Onslow Co. purchased a used machine for $240,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine and an additional $1,600 to secure it in place. The machine will be used for six years and have a $28,800 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations.

Requried:
Prepare journal entries to record the machine’s disposal under each separate situation: (a) it is sold for $24,500 cash; (b) it is sold for $98,000 cash; and (c) it is destroyed in a fire and the insurance company pays $35,000 cash to settle the loss claim.

Answers

Answer:

A Dec-31

Dr Cash 24,500

Dr Accumulated Depreciation 184,000

Dr Loss on Sale of Used Machine 41,100

Cr Machine 249,600

B. Dec-31

Dr Cash 98,000

Dr Accumulated Depreciation 1,84,000

Cr Profit on Sale of Used Machine 32,400

Cr Machine 249,600

C. Dec-31

Dr Cash 35,000

Dr Accumulated Depreciation 1,84,000

Dr Loss on Machine destroyed in Fire 30,600

Cr Machine 249,600

Explanation:

A. Preparation of the journal entries to record the machine’s disposal if it is sold for $24,500 cash

Dec-31

Dr Cash 24,500

Dr Accumulated Depreciation 184,000

Dr Loss on Sale of Used Machine 41,100

(249,600-24,500-184,000)

Cr Machine 249,600

(240,000+8,000+1,600)

B. Preparation of the journal entry to record the machine’s disposal if it is sold for $98,000 cash

Dec-31

Dr Cash 98,000

Dr Accumulated Depreciation 184,000

Cr Profit on Sale of Used Machine 32,400

(249,600-98,000-184,000)

Cr Machine 249,600

(240,000+8,000+1,600)

C. Preparation of the journal entry to record the machine’s disposal if it is destroyed in a fire and the insurance company pays $35,000 cash

Dec-31

Dr Cash 35,000

Dr Accumulated Depreciation 184,000

Dr Loss on Machine destroyed in Fire 30,600

(249,600-35,000-184,000)

Cr Machine 249,600

(240,000+8,000+1,600)

Working:

Cost of machine = 240,000+8,000+1,600

Cost of machine= $249,600

Depreciation (Straight-Line method) = Cost - Salvage / no of years

Depreciation= (249,600-28,800)/6 yr

Depreciation=$36,800

Accumulated Depreciation of 5 Years =($36,800*5)

Accumulated Depreciation of 5 Years =$184,000

At the beginning of the month, the Forming Department of Martin Manufacturing had 29,000 units in inventory, 40% complete as to materials, and 15% complete as to conversion. During the month the department started 98,000 units and transferred 100,000 units to the next manufacturing department. At the end of the month, the department had 27,000 units in inventory, 90% complete as to materials and 60% complete as to conversion. How many units did the Forming Department start and complete in the current month

Answers

Answer:

71,000 units.

Explanation:

Units started and completed = Units Completed - Units in Opening Inventory

therefore

Units started and completed = 100,000 units - 29,000 units = 71,000 units

thus,

Units started and completed  in the current month for the Forming Department is 71,000 units.

On October 1, 2018, Taylor signed a one-year contract to provide handyman services on an as-needed basis to King Associates, with the contract to start immediately. King agreed to pay Taylor $4,800 for the one-year period. Taylor is confident that King will pay that amount, but payment is not scheduled to occur until 2019. Taylor should recognize revenue in 2018 in the amount of Group of answer choices

Answers

Answer:

$1,200

Explanation:

Calculation to determine what Taylor should recognize as revenue in 2018

Recognized Revenue =($4,800 × 3/12 of the contract duration)

Recognized Revenue =$1,200

Therefore Taylor should recognize revenue in 2018 in the amount of $1,200

After graduation, you decide to go into a partnership in an office supply store that has existed for a number of years. Walking through the store and stockrooms, you find a great discrepancy in service levels. Some spaces and bins for items are completely empty; others have supplies that are covered with dust and have obviously been there a long time. You decide to take on the project of establishing consistent levels of inventory to meet customer demands. Most of your supplies are purchased from just a few distributors that call on your store once every two weeks. You choose, as your first item for study, computer printer paper. You examine the sales records and purchase orders and find that demand for the past 12 months was 5,000 boxes. Using your calculator you sample some days' demands and estimate that the standard deviation of daily demand is 10 boxes. You also search out these figures:

Cost per box of paper: $11.
Desired service probability: 98 percent.
Store is open every day.
Salesperson visits every two weeks.
Delivery time following visit is three days.

Using your procedure, how many boxes of paper would be ordered if, on the day the salesperson calls, 60 boxes are on hand?

Answers

Answer:

257 boxes

Explanation:

The computation is given below;

Daily Demand would be

= 5000 ÷ 365

Standard Deviation = 10 boxes

Lead Time = 2 Weeks + 3 Days = 17 Days

Service Level = 0.98

Reorder Point = avg(d) × LT + z ×  σd × sqrt(LT)

= 5000 ÷ 365 × 17 + 2.05 × 10 × 170.5

= 317

So, the number of boxes should be ordered is  

= 317 - 60

= 257 boxes

Cariboo Manufacturing Company incurred a joint cost of $1,147,000 in the production of X and Y in a joint process. Presently, 3,300 of X and 2,900 of Y are being produced each month. Management plans to decrease X's production by 1,050 units in order to increase the production of Y by 1,400 units. Additionally, this change will require minor modifications, which will add $79,360 to the joint cost. This cost is entirely attributable to product Y. What is the amount of the joint costs allocable to X and Y before changes to existing production, assuming Cariboo allocates their joint costs according to the proportion of Y and X produced

Answers

Answer: See explanation

Explanation:

The cost allocation rate will be:

= 1147000 / (3300 + 2900)

= 1147000 / 6200

= 185

Cost allocated to X = 185 × 3300 = 610500

Cost allocated to Y = 185 × 2900 = 536500

Based on the following S&A expenses budgeted for October, prepare a S&A expenses budget for October, November and December.

Sales commissions (10% increase per month) $7,200
Supplies expense (10% increase per month) 1,800
Utilities (fixed) 2,200
Depreciation on store equipment (fixed) 1,600
Salary expense (fixed) 34,000
Rent (fixed) 6,000
Miscellaneous (fixed) 1,000

Cash payments for sales commissions and utilities are made in the month following the one in which the expense is incurred. Supplies and other operating expenses are paid in cash in the month in which they are incurred.

Answers

Answer and Explanation:

The preparation of the S&A expenses budget for October, November and December is presented below:

Particulars              October              November              December

Variable expense :

Sales commission  $7,200               $7,920                     $8,712

                                                   ($7,200 × 1.10)             ($7,920 × 1.10)

Supplies expense  $1,800              $1,980                      $2,178

                                                   ($1,800 × 1.10)             ($1,920 × 1.10

Fixed Expenses:      

Utilities expense $2,200                 $2,200                     $2,200

Depreciation on

Store equipment $1,600                  $1,600                     $1,600

Salary expense   $34,000               $34,000                   $34,000

Rent expense        $6,000                 $6,000                    $6,000

Miscellaneous

expense-fixed portion $1,000            $1,000                     $1,000

Total Selling and

Administrative Expenses $53,800    $54,700                   $55,690

B. In a time study, an analyst observed a worker who prepared hamburgers at the Blimpy Burger restaurant. The recorded average time for the worker to make a hamburger was 4 minutes. Using the Westinghouse performance rating system, the analyst wrote these codes: Skill C1, Effort E1, Conditions D, Consistency B. Assume the following time allowances: personal allowance 4%, fatigue allowance 3%, unavoidable equipment delays 5%. What is the standard time to prepare a hamburger at the Blimpy Burger restaurant

Answers

Answer:

4 minutes and 42 seconds is the standard time.

Explanation:

We observe 4 minutes

The employee has the following factors:

Good Skill(C1)  + 0.06

Fair Effort(E1) - 0.04

Average Conditions: 0.00

Excellent Consistency: +0.03

Sum: 0.05

The worker is 5% above average

The allowance will be:

4% personal + 3% fatigue + 5% equipment = 12%

4.00 minutes x (1.05) x (1.12) = 4.704

We convert that in second: 0.704 x 60 = 42 seconds

4 minutes and 42 seconds is the standard time.

describe the distorting effects of taxes to intrapreneurs​

Answers

Answer:

The higher the tax rate, the more capital is taken out of the hands of the entrepreneur and into the hands of the government. Therefore, many believe that higher tax rates leave entrepreneurs with less money to reinvest in their businesses, leading to less job creation.

Explanation:

https://smallbusiness.chron.com/tax-rates-affect-entrepreneurship-39006.html

Pearson Motors has a target capital structure of 45% debt and 55% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 8%, and its tax rate is 25%. Pearson's CFO estimates that the company's WACC is 12.50%. What is Pearson's cost of common equity

Answers

Answer:

the cost of equity is 17.82%

Explanation:

The computation of the cost of equity is shown below:

As we know that

WACC = weight of debt × cost of debt × (1 - tax rate) + weight of equity × cost of equity

12.50% = 0.45 × 8% × (1 - 0.25) + 0.55 × cost of equity

12.50% = 2.7%  + 0.55 × cost of equity

9.8% =  0.55 × cost of equity

So, the cost of equity is 17.82%

On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $14,000. Jarden prepares a schedule of its December 31 accounts receivable by age.

Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible
$840,000 Not yet due 1.25%
336,000 1 to 30 days past due 2.00
67,200 31 to 60 days past due 6.50
33,600 61 to 90 days past due 32.75
13,440 Over 90 days past due 68.00

Required:
Prepare the adjusting entry to record bad debts expense.

Answers

Answer:

Jarden Co

Adjusting Entry

December 31:

Debit Bad Debts Expense $27,731

Credit Allowance for Doubtful Accounts $27,731

To record bad debts expense.

Explanation:

a) Data and Calculations:

Allowance for Doubtful Accounts, unadjusted credit balance = $14,000

Accounts      Age of Accounts    Expected %     Uncollectible

Receivable       Receivable          Uncollectible      Allowance

$840,000    Not yet due                          1.25%   $10,500 ($840,000*1.25%)

336,000      1 to 30 days past due          2.00         6,720 ($336,000*2%)

67,200        31 to 60 days past due        6.50         4,368 ($67,200*6.5%)

33,600        61 to 90 days past due      32.75        11,004 ($33,600*32.75%)

13,440         Over 90 days past due      68.00         9,139 ($13,440*68%)

$1,290,240                                                             $41,731

T-account:

Allowance for Doubtful Accounts

Account Titles               Debit      Credit

Beginning balance                     $14,000

Bad Debts Expense                      27,731

Ending balance         $41,731

Southern Corporation has a capital structure of 40% debt and 60% common equity. This capital structure is expected not to change. The firm's tax rate is 34%. The firm can issue the following securities to finance capital investments: Debt: Capital can be raised through bank loans at a pretax cost of 10.0%. Also, bonds can be issued at a pretax cost of 7.0%. Common Stock: Retained earnings will be available for investment. In addition, new common stock can be issued at the market price of $90. Flotation costs will be $4 per share. The recent common stock dividend was $4.79. Dividends are expected to grow at 8% in the future.

Required:
What is the cost of capital if the firm uses bank loans and retained earnings?

Answers

Answer:

The cost of capital is 10.89%.

Explanation:

Cost of retained earnings = ((Dividend * (100% + Dividend growth rate)) / Stock price) + Growth rate = ((4.79 * (100% + 8%)) / 90) + 8% = 13.748%

Cost of common stock = Cost of retained earnings = 13.748%

Cost of capital = (Weight of debt * (Cost of debt * (100% - Tax rate))) + (Weight of common stock * Cost of common stock) = (40% * (10% * (100% - 34%))) + (60% * 13.748%) = 10.89%

Therefore, the cost of capital is 10.89%.

Dawls Corporation reported stockholders' equity on December 31 of the prior year as follows:

Common stock, $5 par value, 1,000,000 shares
authorized 500,000 shares issued $2,500,000
Contributed capital In excess of par, common stock 1,000,000
Retained earnings 3,000,000

The following selected transactions occurred during the current year.

Feb. 15 The board of directors declared a 5% stock dividend to stockholders of record on March 1, payable March 20. The stock was selling for $8 per share.
March 9 Distributed the stock dividend.
May 1 A cash dividend of $.30 per share was declared by the board of directors to stockholders of record on May 20, payable June 1.
June 1 Paid the cash dividend.
Aug. 20 The board decided to split the stock 4-for-1, effective on September 1.
Sept. 1 Stock split 4-for-1.
Dec. 31 Earned a net income of $800,000 for the current year.

Required:
Prepare a statement of retained earnings as of December 31 of the current year.

Answers

Answer:

Dawls Corporation

A Statement of Retained Earnings as of December 31 of the current year:

Retained earnings, Jan. 1        $3,000,000

Current year's net income           800,000

Stock dividend                              (125,000)

Cash dividend                               (157,500)

Retained earnings, Dec. 31      $3,517,500

Explanation:

a) Data and Calculations:

Common stock, $5 par value, 1,000,000 shares

authorized 500,000 shares issued                           $2,500,000

Contributed capital In excess of par, common stock  1,000,000

Retained earnings                                                        3,000,000

Total equity                                                                $6,500,000

b) Analysis:

Feb. 15 Stock Dividends $125,000 (25,000 * $5) 25,000 shares(500,000 * 5%)

May 1 Cash Dividends $157,500 (525,000 * $0.30)

 Dec. 31 Net income $800,000

c) Statement of Stockholders' Equity as of December 31

Common stock, $1.25 par value, 4,000,000 shares

authorized 2,100,000 shares issued                          $2,625,000

Contributed capital In excess of par, common stock   1,000,000

Retained earnings                                                           3,517,500

Total equity                                                                   $7,142,500

In finance, equity involves the purchase of assets that may or may not be associated with loans or other liabilities. For accounting reasons, equity is calculated by subtracting liabilities from the amount of property.

Dawls Corporation

A Statement of Retained Earnings as of December 31 of the current year:

Retained earnings, Jan. 1        $3,000,000

Current year's net income           800,000

Stock dividend                              (125,000)

Cash dividend                               (157,500)

Retained earnings, Dec. 31      $3,517,500

Working Notes:

a) Data and Calculations:

Common stock, $5 par value, 1,000,000 shares

authorized 500,000 shares issued                           $2,500,000

Contributed capital In excess of par, common stock  1,000,000

Retained earnings                                                        3,000,000

Total equity                                                                $6,500,000

b) Analysis:

Feb. 15 Stock Dividends $125,000[tex](25,000 \times \$5)[/tex] 25,000 shares[tex](500,000 \times5\%)[/tex]

May 1 Cash Dividends $157,500 [tex](525,000 \times \$0.30)[/tex]

 Dec. 31 Net income $800,000

c) Statement of Stockholders' Equity as of December 31

Common stock, $1.25 par value, 4,000,000 shares

authorized 2,100,000 shares issued                          $2,625,000

Contributed capital In excess of par, common stock   1,000,000

Retained earnings                                                           3,517,500

Total equity                                                                   $7,142,500

To know more about the calculation of the equity, refer to the link below:

https://brainly.com/question/16986414

The type of legal system and the level of corruption in a country have been found to be: significant determinants of the rate of economic growth in a country. important topics for political discussion, but not economic explanations of growth. unrelated to the rate of economic growth in a country. important variables explaining the Golden Rule level of capital

Answers

Answer:

significant determinants of the rate of economic growth in a country.

Explanation:

A legal system can be defined as the system of principles, regulations and rules established by legislature, that is adopted in a community, society or country to regulate the actions of its citizens, members or employees.

Thus, it is a tool used by the judiciary, lawyers, individuals, organizations, and even government to ensure everybody is well behaved, non-criminal and civil in their actions. Therefore, a legal system creates the foundation for ethical behavior.

In circumstances where there are aberration, the legal system enforces an appropriate law as a punishment and penalty for wrongdoings or misdeeds.

Hence, the type of legal system and the level of corruption in a country have been found to be significant determinants of the rate of economic growth in a country because if the level of corruption is high and the legal system isn't functional by appropriately sentencing corrupt individuals or officials in a country, the economy of such a country would be impacted negatively.

Pet business examples

Answers

veterinarian is one example

Hello mate... here's the answer.,...

Answer:

*There are many pet business examples but the few I know are these:- *pet sitting,pet walking , training the dog,pet bakery if u like my answer thank them....

Aspen Company estimates its manufacturing overhead to be $891,000 and its direct labor costs to be $540,000 for year 2. Aspen worked on three jobs for the year. Job 2-1, which was sold during year 2, had actual direct labor costs of $168,000. Job 2-2, which was completed, but not sold at the end of the year, had actual direct labor costs of $293,000. Job 2-3, which is still in work-in-process inventory, had actual direct labor costs of $118,000. Actual manufacturing overhead for year 2 was $960,000. Manufacturing overhead is applied on the basis of direct labor costs.
Required:
A. How much overhead was applied to each job in year 2?
B. What was the over- or underapplied manufacturing overhead for year 2?

Answers

Answer:

See below

Explanation:

First, we need to calculate the predetermined overhead rate.

Predetermined manufacturing overhead rate = Total estimated overhead costs for the period / Total amount of allocation base

Predetermined manufacturing overhead rate = 891,000/540,000 = $1.65 per direct labor dollar

We will now allocate overhead to each job

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

Job 2-1 = $1.65 × $168,000 = $277,200

Job 2-2 = $1.65 × $293,000 = $483,450

Job 2-3 = $1.65 × $118,000 = $194,700

Total allocated overhead = $955,350

The under/over allocation overhead

Under/over applied overhead

= Real overhead - Allocated overhead

Under/over applied overhead

= $960,000 - $955,350

= $4,650

Alana Company manufactures books. Manufacturing a book takes 10 units of A1 and 1 unit of A2. Scheduled production of books for the next two months is 1,000 and 1,200 units, respectively. Beginning inventory is 4,000 units of A1 and 30 units of A2. The ending inventory of A1 is planned to decrease 500 units in each of the next two months, and the A2 inventory is expected to increase 5 units in each of the next two months.
How many units of A1 does Alana Company expect to use in production during the second month?
A) 12,000 units
B) 12,500 units
C) 10,000 units
D) 10,750 units

Answers

Answer:

Direct material used (A1)= 12,500 units

Explanation:

To calculate the units of A1 used in the second month of production, we need to use the following formula:

Direct material used= beginning inventory + production - ending inventory

Beginning inventory= (4,000 - 500)= 3,500

Production= 10*1,200= 12,000

Ending inventory= (3,500 - 500)= 3,000

Direct material used (A1)= 3,500 + 12,000 - 3,000

Direct material used (A1)= 12,500 units

A semiprofessional baseball team near your town plays two home games each month at the local baseball park. The team splits the concessions 50/50 with the city but keeps all the revenue from ticket sales. The city charges the team $100 each month for the three-month season. The team pays the players and manager a total of $1000 each month. The team charges $10 for each ticket, and the average customer spends $8 at the concession stand. Attendance averages 30 people at each home game.

The team earns $_________in revenue for each game and $_________ revenue each season. With total costs of $_________ each season, the team finishes the season with $_________ of profit.

Answers

Answer and Explanation:

The computation is shown below:

The revenue earned by team for each game is

= $10 + 50% of $8

= $10 + 4

= $14

Now the revenue for each session is

= $14 × 30 PEOPLE × 6 games

= $2,520

The total cost would be

= $100 × 3 + $1,000 × 3

= $300 + $3,000

= $3,300

And, the team would finished the season for profit of

= Revenue - cost

= $2,520 - $3,300

= $780 loss

What is the basic aim of the National Labor Relations Act?
A. Protecting workers' rights to organize and join a union
B. Requiring HR departments to engage in labor relations
C. Requiring employers to provide safe working conditions
D. Requiring employers to provide equal employment opportunity

Answers

Answer:

A - Protecting workers rights to organize and join a union

Explanation:

The general aim of the NLRA (National Labor Relations Act) was to protect workers from employers to revoke the rights of the employee to join or organize a union. Now, workers are able to freely join unions or organize them without being punished according to the NRLA.

Hope this helps.

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