Answer:
Annual investment= $2,855.71
Explanation:
First, we will determine the future value of the investment of Twin 1 at the end of the firsts 10 years.
Twin 1:
Annual investment= $1,500
Number of periods= 10 years
Interest rate= 7%
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {1,500*[(1.07^10) - 1]} / 0.07
FV= $20,724.67
Now, the value of the account of Twin 1 after 32 years (65 - 33), if he leaves the money to gain interest:
FV= PV*(1+i)^n
FV= 20,724.67*(1.07^32)
FV= $180,621.11
Finally, the annual deposit that Twin 2 must make to equal the amount earned by Twin 1:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (180,621.11*0.07) / [(1.07^25) - 1]
A= $2,855.71
Twin 2 must make an annual deposit of $2,855.71 to match the amount earned by Twin 1, which is the annual investment.
How do you calculate the Annual investment of Twin 2?First, we'll calculate the future value of Twin 1's investment at the conclusion of the first ten years.
[tex]\text{Twin 1}:\\\text{Annual investment}= $1,500\\\text{Number of periods= 10 years}\\\text{Interest rate= 7} \text{percent}\\FV= {A\text{x}[(1+i)^n-1]}/i\\\text{A= annual deposit}FV= {1,500 \text{x} [(1.07^{10} ) - 1]} / 0.07FV= $20,724.67[/tex]
The following is the worth of Twin 1's account after 32 years (65 - 33), assuming he leaves the money to earn interest:
[tex]\text{FV= PV} \text{x}(1+i)^n\\FV= 20,724.67\text { x }(1.07^{32})\\FV= 180,621.11[/tex]
Finally, Twin 2 must make an annual deposit equivalent to the amount generated by Twin 1:
[tex]\text{FV}= {\text{A} \text{x}{[(1+i)^n-1]}/\text{i}\\\text{A= annual deposit}[/tex]
[tex]\text{Isolating A}:\\A= (FV \text{x} i)/{[(1+i)^n]-1}\\A= (180,621.11 \text{x} 0.07) / [(1.07^{25} ) - 1]\\A= 2,855.71[/tex]
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A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company uses machine-hours as its measure of activity.
Standard Hours per Unit of Output 8.1 machine hours
Standard Variable Overhead Rate $14.30 per machine hour
The following data pertain to operations for the last month:
Actual Hours 1,700 machine hours
Actual Total Variable Overhead Cost $24,905
Actual Output 200 units
What is the variable overhead efficiency variance for the month?
a. $567 favourable.
b. $1,144 unfavourable.
c. $1,172 favourable.
d. $1,172 unfavourable.
Answer:
b. $1,144 unfavourable.
Explanation:
The computation of the variable overhead efficiency variance is shown below:
= (Actual Hours - Standard Hours) × Standard rate per hour
=(1,700 - 8.1 × 200 units) × $14.30
= 80 × $14.30
= $1,144 unfavorable
hence, the variable overhead efficiency variance is $1,144 unfavorable
Therefore the option b is correct
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
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 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?
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.
Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations and sales activities for June. The journal entry to record June sales is:____
Direct materials used $74,000
Direct labor used $136,100
Pre-determined overhead rate
(based on direct labor) 120%
Goods transferred to
finished goods $444,000
Cost of goods sold $456,000
Credit sales $831,600
A. Debit Accounts Receivable $831,600; credit Cost of Goods Sold $831,600.
B. Debit Accounts Receivable $831,600; credit Sales $375,600; credit Finished Goods Inventory $456,000.
C. Debit Cost of Goods Sold $456,000; credit Sales $456,000.
D. Debit Finished Goods Inventory $456,000; debit Sales $831,600; credit Accounts Receivable $831,600; credit Cost of Goods Sold $456,000.
D. Debit Accounts Receivable $831,600; credit Sales $831,600; debit Cost of Goods Sold $456,000; credit Finished Goods Inventory $456,000.
Answer: Debit Accounts Receivable $831600; credit Sales $831600; debit Cost of Goods Sold $456,000; credit Finished Goods Inventory $456,000.
Explanation:
Based on the information given, the journal entry to record June sale will be:
Debit Accounts Receivable $831,600;
Credit Sales $831,600;
Debit Cost of Goods Sold $456,000;
Credit Finished Goods Inventory $456,000.
Pet business examples
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....
Oriole Company sells office equipment on July 31, 2022, for $21,000 cash. The office equipment originally cost $73,600 and as of January 1, 2022, had accumulated depreciation of $42,300. Depreciation for the first 7 months of 2022 is $5,250. Prepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment.
Answer:
(a) update depreciation to July 31, 2022
Debit : Depreciation expense $5,250
Credit : Accumulated depreciation $5,250
(b) record the sale of the equipment.
Debt : Cash $21,000
Debit : Accumulated depreciation $47,550
Debit : Profit and loss $5,050
Credit : Office equipment at Cost $73,600
Explanation:
It is important to remember that even in the year of sale, we still have to provide for depreciation of the asset for the period it was in use for that year. Hence the need to prepare a journal to update the depreciation.
After a disposal, the company incurs either a profit or a loss and this must be accounted for. The whole process of a sale can be shown in a journal.
Accumulated depreciation = $42,300 + $5,250 = $47,550
The Loss on sale of the asset is $5,050.
The following information is available for the pension plan of Concord Company for the year 2020.
Actual and expected return on plan assets $13,800
Benefits paid to retirees 38,400
Contributions (funding) 79,900
Interest/discount rate 10%
Prior service cost amortization 7,800
Projected benefit obligation, January 1, 2020 452,000
Service cost 54,700
Required:
Compute pension expense for the year 2020.
Answer:
$93,900
Explanation:
Computation for pension expense for the year 2020.
PENSION EXPENSE
Service cost $54,700
Interest cost $45,200
($452,000 * 0.10)
Less Actual return ($13,800)
Amortization of PSC $7,800
Pension expense $93,900
Therefore the pension expense for the year 2020 is $93,900
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.
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.
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
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
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.
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
describe the distorting effects of taxes to intrapreneurs
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
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
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.
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
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
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
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
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
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
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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
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.
Game theory assumes that: Group of answer choices firms anticipate rival firms' decisions when they make their own decisions. firms ignore rival firms' decisions when they make their own decisions. a firm will always follow the pricing strategy of the dominant firm in the industry. markets are contestable because there are no barriers to entry.
Answer:
firms anticipate rival firms' decisions when they make their own decisions.
Explanation:
Game theory assumes that firms anticipate rival firms' decisions when they make their own decisions. It is very important and necessary for understanding firms operating in an oligopolistic market.
An oligopoly can be defined as a market structure comprising of a small number of firms (sellers) offering identical or similar products, wherein none can limit the significant influence of others.
Hence, it is a market structure that is distinguished by several characteristics, one of which is either similar or identical products and dominance by few firms.
This ultimately implies that, under the game theory, when firms makes a decision about their business, it is expected that they consider how the other firms would react to such decisions.
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?
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 pesticidesAccounting 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 landEconomic cost = $35,000 + $20,000 = $55,000
Cioffi Manufacturing Company incorporates standards in its accounts and identifies variances at the time the manufacturing costs are incurred. Journalize the entries to record the following transactions:
a. Purchased 2,450 units of copper tubing on account at $52.00 per unit. The standard price is $48.50 per unit.
b. Used 1,900 units of copper tubing in the process of manufacturing 200 air conditioners. Ten units of copper tubing are required, at standard, to produce one air conditioner.
Answer:
I would bet that it is A
Explanation:
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what are the financial resources of netflix
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:
Which of the following factors is likely to have a positive impact on the success of a TQM program? Check all that apply. Employees work at tasks that require high skills. Continuous improvement becomes a way of life. Managers expect to see dramatic innovations as a result of TQM. Employees use participation and teamwork to tackle significant problems.
The factors that will have positive impact on the success of a TQM program includes when:
Employees work at tasks that require high skillsTQM motivates employees and enriches jobs.What is a TQM program?This means a total quality management program and are asopted by management to achieve a long-term success through a consistent customer satisfaction.
When an employees work at tasks that require high skills and the program motivates employees and enriches jobs, this are factors that will impact positively on the success of a TQM program
Therefore, the Option A and D is correct.
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Restricted stock units (RSUs): Multiple Choice are a grant valued in terms of a set number of shares of company stock. are reported as a liability if payable in shares rather than cash. are recorded based on a value estimated by a restricted stock valuation model. represent shares issued at the date of grant that must be returned if the recipient fails to satisfy the vesting requirement.
Answer:
grant valued in terms of a set number of shares of company stock
Explanation:
A restricted stock unit (RSU) is a type of compensation (company shares) that is issued to an employee by an employer.
A restricted stock unit (RSU) is non-transferable.
RSU cannot be sold due to securities regulations laws and laws.
Restricted stock units (RSUs) grant valued in terms of a set number of shares of company stock.
Below are the simplified current and projected financial statements for Decker Enterprises. All of Decker's assets are operating assets. All of Decker's current liabilities are operating liabilities. Income statement Current Projected Sales na 1,500 Costs na 1,080 Profit before tax na 420 Taxes (25%) na 105 Net income na 315 Dividends na 95 Balance sheets Current Projected Current Projected Current assets 100 115 Current liabilities 70 81 Net fixed assets 1,200 1,440 Long-term debt 300 360 Common stock 500 500 Retained earnings 430 650 If Decker had a financing deficit, it could remedy the situation by a. borrowing from retained earnings b. borrowing on its line of credit c. paying down its long-term debt d. buying back common stock e. paying a special dividend
Answer:
Decker Enterprises
If Decker had a financing deficit, it could remedy the situation by
b. borrowing on its line of credit
Explanation:
a) Data and Calculations:
Income statement Current Projected
Sales na 1,500
Costs na 1,080
Profit before tax na 420
Taxes (25%) na 105
Net income na 315
Dividends na 95
Balance sheets Current Projected Current Projected
Current assets 100 115 Current liabilities 70 81
Net fixed assets 1,200 1,440 Long-term debt 300 360
Common stock 500 500
Retained earnings 430 650
Total assets 1,300 1,555 Liabilities + Equity 1,300 1,591
Shortfall in projected assets = $36 ($1,591 - $1,555)
b) A company cannot borrow from retained earnings to remedy a financing deficit because financial deficits require external financing from stockholders, debt holders, or financial institutions. Ordinarily, options c, d, and e involve cash outflows. They cannot finance a financial deficit.
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
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
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?
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:
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?
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
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.
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
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
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.
To qualify for a debt consolidation loan, you must have some type of collateral that secures the payment of the debt.
a. True
b. False
at is Dantzler's horizon, or continuing, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.) Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. $ fill in the blank 2 million What is the firm's value today? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round your intermediate calculations. $ fill in the blank 3 million Suppose Dantzler has $119 million of debt and 5 million shares of stock outstanding. What is your estimate of the current price per share? Round your answer to two decimal places. Write out your answer completely. For example, 0.00025 million should be entered as 250. $ fill in the blank 4
Answer:
a. Horizon Value = $856 million
b. Firm’s value today = Value of Firm = $641.61 million
c. Current Price per Share = $32.72
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Dantzler Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFS) during the next 3 years, after which FCF is expected to grow at a constant 7% rate. Dantzler's WACC is 12%.
Year FCF ($ millions)
0 -
1 -$18
2 $25
3 $40
a. What is Dantzler's horizon, or continuing, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.) Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. million
b. What is the firm's value today? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round your intermediate calculations. million
c. Suppose Dantzler has $20 million of debt and 19 million shares of stock outstanding. What is your estimate of the current price per share? Round your answer to two decimal places. Write out your answer completely. For example, 0.00025 million should be entered as 250.
The explanation of the answers is now given as follows:
a. What is Dantzler's horizon, or continuing, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.) Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. million
Horizon Value = Year 3 FCF * (100% + Constant growth rate) / (WACC – Constant growth rate) = $40 * (100% + 7%) / (12% - 7%) = $856 million
b. What is the firm's value today? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round your intermediate calculations. million
Value of Firm = (Year 1 FCF /(100% + WACC)^1) + (Year 2 FCF / (100% + WACC)^2) + ((Year 3 FCF + Horizon value) / (100% + WACC)^3)
Value of Firm = (-18/(100%+12%)^1+(25/(100%+12%)^2)+((856+40)/(100%+12%)^3))
Value of Firm = $641.61 million
c. Suppose Dantzler has $20 million of debt and 19 million shares of stock outstanding. What is your estimate of the current price per share? Round your answer to two decimal places. Write out your answer completely. For example, 0.00025 million should be entered as 250.
Current Price per Share = (Value of Firm – Debt) / Number of shares of stock outstanding = (641.61 - 20) / 19 = $32.72