You own factory A and factory B. The next cash flow for each factory is expected in 1 year. Factory A has a cost of capital of 3.5 percent and is expected to produce annual cash flows of $19,300 forever. Factory B is worth $545,000 and is expected to produce annual cash flows of $19,900 forever. Which assertion is true

Answers

Answer 1

Answer: See Explanation

Explanation:

First, we have to calculate the worth of factory A which will be:

= Cash flow / Cost of capital

= $19300 / 3.5%

= $19300 / 0.035

= $551428.57

= $551429

Cost of capital of Factory B = Cash flow / Worth

= $19,900 / $545,000

= 0.0365

= 3.65%

Cost of capital of Factory A = 3.5%

Cost of capital of Factory B = 3.65%

Worth of factory A = $551429

Worth of Factory B = $545,000

Therefore, factory A is more valuable than Factory B and Factory B is more risky than Factory A.


Related Questions

Fred Moss, owner of Moss Interiors, is negotiating for the purchase of Zweifel Galleries. The following balance sheet of Zweifel is given in an abbreviated form below.

ZWEIFEL GALLERIES BALANCE SHEET AS OF DECEMBER 31, 2017
Assets Liabilities and Stockholders' Equity
Cash $100,000 Accounts payable $50,000
Land 70,000 Notes payable (long-term) 300,000
Buildings (net) 200,000 Total liabilities 350,000
Equipment (net) 175,000 Common stock $200,000
Copyrights (net) 30,000 Retained earnings 25,000 225,000
Total assets $575,000 Total liabilities and stockholders' equity $575,000

Moss and Zweifel agree that:
1. Land is undervalued by $30,000.
2. Equipment is overvalued by $5,000.

Zweifel agrees to sell the gallery to Moss for $350,000.

Required:
Prepare the entry to record the purchase of Zweifel Galleries on Moss's books.

Answers

Answer:

Dr Cash 100,000  

Dr Land 100,000  

Dr Equipment 170,000

Dr Building 200,000  

Dr Copyright 30,000  

Dr Goodwill 100,000  

    Cr Accounts payable 50,000

    Cr Long-term notes payable 300,000

    Cr Cash 350,000

Explanation:

Goodwill = sales price - net assets + fair value adjustments = $350,000 - ($575,000 - $350,000) + ($30,000 - $5,000) = $100,000

If the price of output increases, the marginal revenue product curve will shift ________ and the profit maximizing quantity of labor demanded will ________. Group of answer choices up; decrease down; decrease down; increase up; increase

Answers

Answer:

Increase marginal revenue

If the price of output increases, the marginal revenue product curve will shift up and the profit maximizing quantity of labor demanded will decrease. Thus, option (a) is correct.

What is product?

The thing being sold is called a “product.” A product and service market foundation. Items are divided into two categories: industrial products and consumer products. The product is to fulfill the needs of the consumer. There was the based on the commonly are the rules in the government to follow the product management.

When the quantities of other variables utilized fluctuate, the marginal revenue product of labor changes. It will also fluctuate as a result of changes in technology, the price of the product being produced, or the number of enterprises hiring workers. The product curve will trend upward, while the quality will fall.

As a result, the price of output increases, the marginal revenue product curve will shift up and the profit maximizing quantity of labor demanded will decrease.  Therefore, option (a) is correct.

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Gross Domestic Product (GDP) can be defined as: I. The sum of all incomes while adjusting for indirect business taxes and foreign incomes. II. The market value of goods and services sold in an economy in some time period. III. The total market value of final goods and services produced in an economy in some time period. III only I and II only I, II and III II and III only I and III only

Answers

Answer:

I and III only

Explanation:

The full form of GDP is Gross domestic product. It is the sum of all the income at the time when the business taxes i.e. indirect and the foreign incomes would be adjusted also it is a sum total of market value of the goods and services i.e. final generated in an economy for a time period

Therefore the I and III statements are true

If the supply of a good increased, what would be the effect on the equilibrium price and quantity?

Answers

Answer:

An increase in supply, all other things unchanged, will cause the equilibrium price to fall; quantity demanded will increase. A decrease in supply will cause the equilibrium price to rise; quantity demanded will decrease.

If supply increases while all other factors remain constant, the equilibrium price will fall. The quantity demanded will rise. A decrease in supply raises the equilibrium price while decreasing the quantity demanded.

What is supply?

Supply is a fundamental economic concept that describes the total amount of a specific good or service that consumers have access to.

If displayed on a graph, supply can refer to the amount available at a specific price or the amount available across a range of prices. Changes in the supply curve shift the equilibrium price and quantity. If supply grows, equilibrium price falls and quantity grows.

Therefore, an increase in the supply will cause a reduction in equilibrium price and an increase in the quantity of a good.

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The Puck and Pawn Company manufactures hockey sticks and chess sets. Each hockey stick yields an incremental profit of $2 and each chess set, $4. A hockey stick requires 4 hours of processing at machine center A and 2 hours of processing at machine center B. A chess set requires 6 hours at machine center A, 6 hours at machine center B, and 1 hour at machine center C. Machine Center A has a maximum of 120 hours of available capacity per day, machine center B has 72 hours, and machine center C has 10 hours. If the company wishes to maximize profit, how many hockey sticks and chess sets should be produced per day

Answers

Answer:

For number of units of hockey stick = 24

For number of units of chess sets = 4

Maximum possible profit = $64

Explanation:

Decision Variables:

Number of units of Hockey sticks and chess sets

Number of Units           Hockey Sticks               Chess Sets

                                              H                                     C

Objective Function:

Maximize the total profit:

Max P = 2H + 4C

Constraints:

4H + 6C [tex]\leq[/tex] 120 hours    ---> A

2H + 6C [tex]\leq[/tex]  72 hours    ---->B

          C  [tex]\leq[/tex]  10 hours -----> C

H, C [tex]\geq[/tex] 0

For this question to solve, we need to draw a feasible region diagram, which I have attached in the attachment. Please refer to it.

So,

Points According to the feasible region are:

D(0,10) ; A(6,10) ; B(24,4) ; C(30,0) ;

Value of objective function at corner points:

At D(0,10) ;  P = 2H + 4C = 2x0 + 4 x 10 = $40

At A(6,10);   P = 2H + 4C = 2x6 + 4x10 =  $52

At B((24,4) : P = 2H + 4C = 2 x 24 + 4x4 = $64

At C(30,0) ; P = 2H +4C = 2x30 + 4x0 = $60

Hence,

P is maximum at corner point B(24,4)

For number of units of hockey stick = 24

For number of units of chess sets = 4

Maximum possible profit = $64

The following is the information for the Brendan's Bread bakery company: Beginning raw materials inventory $ 53,200 Beginning work in process, inventory 78,400 Ending raw materials inventory 58,100 Ending work in process, inventory 98,000 Direct labor 149,800 Total factory overhead 105,000 Raw material purchases 210,000 Question: What is the value of Total Manufacturing Costs? Do not include a dollar sign or commas in your answer.

Answers

Answer:

$254,900

Explanation:

Total Manufacturing Costs include all costs involved in manufacturing a Product such as direct materials, direct labor and indirect costs or overheads incurred during the period of production.

Calculation of Total Manufacturing Cost

Raw Materials (53,200 +210,000 -58,100)  $205,100

Direct Labor                                                   $149,800

Factory Overhead                                         $105,000

Total Manufacturing Cost                             $254,900

Conclusion

Total Manufacturing Costs will be $254,900

Which of the following is not a key component of the merger model we walked through in the course?

Answers

Answer:

Gathering publicly available comparable company information

Creating detailed forecasts for both companies

An accretion/dilution and sensitivity analysis

Determining and calculating items related to the acquisition structure

Which of the following statements is not true? Many Fortune 500 U.S. firms derive more than half their revenues from foreign operations. Technology companies are particularly dependent on offshore revenue. Eighty percent of the toys sold in the United States are manufactured in China. Most PCs manufactured in China use microprocessor chips manufactured in Korea. In 2017, 60 percent of Apple's revenue was generated outside of the United States.

Answers

Answer:

B

Explanation:

Brainliest?

The level of analysis for the Industry environment is the _____ level:

Answers

Luv I don’t know sorry very sorry

Which statement does not describe the Linux operating systems?
It is proprietary software.
Its code can be modified by users.
It was developed by Torvalds.
It is an open-source application

Answers

Answer:

c your correct

Explanation:

A Herfindahl-Hirschman Index is calculated by
A. summing the advertising expenditures of the firms that want to merge by total industry advertising expenditures.
B. summing the amount of sales by the four largest firms and dividing by total industry sales.
C. dividing the number of firms wanting to merge by the total number in the industry.
D. summing the squares of the market shares of each firm in the industry.

Answers

Answer:

Option D: Summing the squares of the market shares of each firm in the industry.

Explanation:

The Herfindahl-Hirschman index (HHI) is a use worldwide as measure of market concentration. It's calculation is based on squaring the market share of each firm competing in a market, and thereafter the resulting numbers are summed up. It commonly range known is simply from zero to 10,000. It is used by U.S. Department of Justice uses for potential mergers issues evaluation. It is a measure of industry concentration by the sum of the squares of the market shares held by each of the firms in the industry.

The Herfindahl index shows a decrease in competition and an increase of market power, when there is an increase and decreases is the opposite.

Which of the following is a simple sentence?
a. Because we will be reducing employee health insurance benefits, some employees may be unhappy; however, we must make sure that they understand the reason for the change.
b. HMO and PPO insurance plans offer additional cost savings.
c. Having healthy employees decreases the cost of monthly premiums; therefore, we will be implementing a wellness program.
d. If health insurance costs continue to rise, employee copays may increase.

Answers

The simple sentence is:b. HMO and PPO insurance plans offer additional cost savings.

A simple sentence is a sentence with one independent clause (also called a main clause). It can have a compound subject or predicate. There is only one independent clause in a simple sentence and it expresses a single thought. Among the given sentences, the simple sentence is:b. HMO and PPO insurance plans offer additional cost savings.

Explanation:The sentence "HMO and PPO insurance plans offer additional cost savings" is a simple sentence because it contains only one subject-verb pair, “HMO and PPO insurance plans” (subject), “offer” (verb).

The sentence is clear and straightforward. It contains no dependent clauses or conjunctions that join two independent clauses. Hence, this sentence is a simple sentence.  

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The 2018 balance sheet of Speith’s Golf Shop, Inc., showed long-term debt of $5 million, and the 2019 balance sheet showed long-term debt of $5.25 million. The 2019 income statement showed an interest expense of $165,000. The 2018 balance sheet showed $510,000 in the common stock account and $4.6 million in the additional paid-in surplus account. The 2019 balance sheet showed $550,000 and $4.8 million in the same two accounts, respectively. The company paid out $410,000 in cash dividends during 2019. Suppose you also know that the firm’s net capital spending for 2019 was $1,370,000, and that the firm reduced its net working capital investment by $69,000. What was the firm's 2019 operating cash flow, or OCF?

Answers

Answer:

$1,386,000

Explanation:

The computation of the operating cash flow is shown below:

But before that following calculations must be done

Cash Flow to Creditors

Cash Flow to Creditors = Interest Expenses Paid - Net Increase in Long term debt

= Interest Expenses Paid - [Ending Long term debt  - BEginning Long term Debt]

= $165,000 - [$5,250,000 - $5,000,000]

= $165,000 - $250,000

= -$85,000

Cash Flow to Stockholders

Cash Flow to Stockholders = Dividend Paid - Net New Equity

= Dividend Paid - [(Ending Common stock  + Ending Additional paid-in surplus account ) - (Opening Common stock  + OPening Additional paid-in surplus account )

= $410,000 - [($550,000 + $4,800,000) - ($510,000 + $4,6000,000)]

= $410,000 - [$5,350,000 - $5,110,000]

= $410,000 - $240,000

= $170,000  

Cash Flow from assets

Cash Flow from assets = Cash Flow to Creditors + Cash Flow to Stockholders

= -$85,000 + $170,000

= $85,000

Operating Cash Flow  

= Operating Cash flows - Change in Net Working capital - Net Capital Spending

$85,000 = Operating cash flow - (-$69,000) - $1,370,000

= $85,000 - $69,000 + $13,70,000

= $1,386,000

Sagon Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of September. Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was $97,000 and the total of the credits to the account was $67,000. Which of the following statements is true?
A. Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $75,000.
B. Actual manufacturing overhead incurred during the month was $56,000.
C. Manufacturing overhead applied to Work in Process for the month was $75,000.
D. Manufacturing overhead for the month was underapplied by $19,000.

Answers

Answer:

Manufacturing overhead for the month was underapplied by $30,000.

Explanation:

Since it is given that

The debit to the manufacturing overhead is $97,000

And, the total credit is $67,000

So, the remaining amount would be

= $97,000 - $67,000

= $30,000

This $30,000 represent the underapplied overhead

This is the correct answer but the same is not provided in the given options

Mayweather reports net income of $305,000 for the year ended December 31. It also reports $93,700 depreciation expense and a $10,000 loss on the sale of equipment. Its comparative balance sheet reveals a $40,200 increase in accounts receivable, a $10,200 decrease in prepaid expenses, a $15,200 increase in accounts payable, a $12,500 decrease in wages payable, a $75,000 increase in equipment, and a $100,000 decrease in notes payable. Calculate the net increase in cash for the year.

Answers

Answer:

206,400.00

Explanation:

Calculation for the net increase in cash for the year

Net Income 305,000

Adjustment to reconcile Net Income to Net Cash

Add:

Depreciation Expense 93,700

Loss on sale of equipment 10,000

Cash flow from Operations 408,700

(305,000+93,700+10,000)

Changes in Current Assets/Current Liabilities

Less Increase in Accounts Receivable (40,200)

Decrease in Prepaid Expenses 10,200

Increase in Accounts Payable 15,200

Less Decrease in Wages Payable (12,500) (27,300)

Net cash provided by operating activities 381,400

(408,700-27,300)

Cash flow from investing activities

Increase in equipment (75,000)

Net cash provided by investing activities (75,000)

Cash flow from financing activities

Decrease in Notes payable (100,000)

Net cash provided by financing activities (100,000)

Net Increase/(Decrease) in cash $206,400

Therefore the net increase in cash for the year will be $206,400

Identify which accounts should be closed on May 31.

Cash

Not Closed
Closed
Supplies

Closed
Not Closed
Prepaid Insurance

Not Closed
Closed
Land

Closed
Not Closed
Buildings

Not Closed
Closed
Equipment

Not Closed
Closed
Accounts Payable

Closed
Not Closed
Unearned Rent Revenue

Not Closed
Closed
Mortgage Payable

Closed
Not Closed
Common Stock

Not Closed
Closed
Rent Revenue

Not Closed
Closed
Salaries and Wages Expense

Closed
Not Closed
Utilities Expense

Not Closed
Closed
Advertising Expense

Not Closed
Closed
Interest Expense

Not Closed
Closed
Insurance Expense

Not Closed
Closed
Supplies Expense

Not Closed
Closed
Depreciation Expense

Closed
Not Closed

Answers

Answer:

Cash   ___________________ Not Closed

Supplies _________________Not Closed

Prepaid Insurance _________ Not Closed

Land  ___________________Not Closed  

Buildings ________________Not Closed

Equipment _______________Not Closed

Accounts Payable _________ Not Closed

Unearned Rent Revenue ____Not Closed

Mortgage Payable _________Not Closed

Common Stock ___________Not Closed

Rent Revenue ____________Closed

Salaries and Wages Expense_Closed

Utilities Expense __________ Closed

Advertising Expense _______ Closed

Interest Expense __________ Closed

Insurance Expense _________Closed

Supplies Expense __________Closed

Depreciation Expense _______Closed  

Explanation:

In accounting, there are two types of accounts

TemporaryPermanent

Temporary

Temporary accounts are closed at the end of each accounting period and new balance are maintained for the new period.

Expense and Income accounts are temporary accounts and these accounts are closed in the retained earning account of the balance share.

In this question following accounts are temporary accounts and these are needed to be closed at the end of the period.

Rent Revenue  

Salaries and Wages Expense

Utilities Expense  

Advertising Expense

Interest Expense

Insurance Expense

Supplies Expense  

Depreciation Expense

Permanent Accounts

Permanent accounts are not closed at the end of each accounting period and they carried their net and accumulated balance in the next period.

Assets, Equity, and Liabilities accounts are permanent accounts.

In this question following accounts are permanent accounts

Cash    

Supplies  

Prepaid Insurance  

Land

Buildings  

Equipment  

Accounts Payable  

Unearned Rent Revenue  

Mortgage Payable  

Common Stock  

Cash ___________________ Not Closed

Supplies _________________Not Closed

Prepaid Insurance _________ Not Closed

Land ___________________Not Closed

Buildings ________________Not Closed

Equipment _______________Not Closed

Accounts Payable _________ Not Closed

Unearned Rent Revenue ____Not Closed

Mortgage Payable _________Not Closed

Common Stock ___________Not Closed

Rent Revenue ____________Closed

Salaries and Wages Expense_Closed

Utilities Expense __________ Closed

Advertising Expense _______ Closed

Interest Expense __________ Closed

Insurance Expense _________Closed

Supplies Expense __________Closed

Depreciation Expense _______Closed

Explanation:

In accounting, there are two types of accounts

Temporary

Permanent

Temporary

Temporary accounts are closed at the end of each accounting period and new balance are maintained for the new period.

Expense and Income accounts are temporary accounts and these accounts are closed in the retained earning account of the balance share.

In this question following accounts are temporary accounts and these are needed to be closed at the end of the period.

Rent Revenue

Salaries and Wages Expense

Utilities Expense

Advertising Expense

Interest Expense

Insurance Expense

Supplies Expense

Depreciation Expense

Permanent Accounts

Permanent accounts are not closed at the end of each accounting period and they carried their net and accumulated balance in the next period.

Assets, Equity, and Liabilities accounts are permanent accounts.

In this question following accounts are permanent accounts

Cash

Supplies

Prepaid Insurance

Land

Buildings

Equipment

Accounts Payable

Unearned Rent Revenue

Mortgage Payable

Common Stock

Tesla's use of renewable energy sources is an example of which type of corporate social responsibility?
A. Responsibility to stakeholders
B. Responsibility to society
C. Corporate philanthropy
D. Environmental responsibility​

Answers

Answer:

D. Environmental responsibility​

Explanation:

Environmental responsibility can be defined as a set of efforts adopted by companies with the objective of reducing the negative impacts related to business activities and adopting practices aimed at environmental protection.

In the case of Tesla, the use of renewable energies is an example of environmental responsibility, as the company's focus is the production of electric vehicles, which, unlike vehicles that use fossil fuels, do not emit polluting gases that contribute to the greenhouse effect.

Therefore, Tesla offers an alternative that reduces the environmental impact of vehicles, attesting to their environmental responsibility and increasing the brand value, reliability and positioning with stakeholders, being a company aligned with the highest parameters of promoting sustainability.

Dillon Company incurred the following costs while producing 480 units: direct materials, $9 per unit; direct labor, $22 per unit; variable manufacturing overhead, 12 per unit; total fixed manufacturing overhead costs, $7,680; variable selling and administrative costs, $4 per unit; total fixed selling and administrative costs, $4,320. There are no beginning inventories.

What is the unit product cost using variable costing?
A. $72 per unit
B. $59 per unit
C. $47 per unit
D. $43 per unit

Answers

Answer:

The unit cost is $43 per unit

Explanation:

Required

Determine the unit product cost?

Using variable costing, the unit product cost is:

[tex]Unit = DM+ DL + VMO[/tex]

[tex]DM = Direct\ Materials =\$9[/tex]

[tex]DL = Direct\ Labor =\$22[/tex]

[tex]VMO = Variable\ Manufacturing\ Overhead = \$12[/tex]

So, we have:

[tex]Unit = \$9 + \$22 + \$12[/tex]

[tex]Unit = \$43[/tex]

Hence, the unit cost is $43 per unit

How do financial institutions contribute to the development of a market economy?
A.
They collect sales tax on goods and services for local and state governments.
B.
They impose and collect tariffs on products imported from other countries.
C.
They prevent businesses and people from overspending when prices are high.
D.
They provide loans so that businesses and people can buy goods and services.

Answers

Option D they provide loan so that businesses and people can buy goods and services.

Answer:

Option D

Explanation:

I just used this on my test and got it correct

Babe Ruth was a famous baseball player in the 1920s. He made a salary of $80,000 in 1930, which was considered outrageous because it was more than President Hoover made ("I had a better year than he did" was Ruth's supposed response). Nowadays, baseball players make much more than $80,000; the average major league salary in 2017 is $4.47 million per year, and the highest salary is $33 million for Clayton Kershaw. Some of the difference in salaries between Babe Ruth and today's players is due to inflation, and some of it is due to the fact that major league players make more in real terms today, because the market for baseball has grown over times and because players have gotten a higher share of the baseball pie over time because they have a powerful union How much of the difference is due to inflation? What is Babe Ruth's 1930 salary in today's dollars? You can use the same "index method" formula that we used to convert nominal GDP to real GDP in class. There are various websites that show the Consumer Price Index for various years.

Answers

Answer:

In real dollars, Babe Ruth's salary = $80,000 / 0.0645 (CPI 1930) = $1,240,000

Since Babe Ruth was the highest paid baseball player back then, if we compare his updated salary to Kershaw's salary, it represents only = $1,240,000 / $33,000,000 = 3.76%.

That means that most of the players' salary raise was due to other factors, not just inflation.

Gubser Welding, Inc., operates a welding service for construction and automotive repair jobs. Assume that the arrival of jobs at the company's office can be described by a Poisson probability distribution with an arrival rate of five jobs per 8-hour day. The time required to complete the jobs follows a normal probability distribution, with a mean time of 1.3 hours and a standard deviation of 1 hour. Answer the following questions, assuming that Gubser uses one welder to complete all jobs:
What is the mean arrival rate in jobs per hour? Round your answer to four decimal places.
jobs per hour _________
What is the mean service rate in jobs per hour? Round your answer to four decimal places.
jobs per hour _________
What is the average number of jobs waiting for service? Round your answer to three decimal places.
__________
What is the average time a job waits before the welder can begin working on it? Round your answer to one decimal place.
_________ hours
What is the average number of hours between when a job is received and when it is completed? Round your answer to one decimal place.
_________ hours
What percentage of the time is Gubser's welder busy? Round your answer to the nearest whole number.
_________ % of the time the welder is busy.

Answers

Answer:

a) Mean arrival rate in jobs per hour = 0.6250

b) Mean service rate in jobs per hour = 0.7692

c) The average number of jobs waiting for service = 2.802

d) Average time a job waits before the welder can begin working on it = 4.5 hours

e) Average number of hours between when a job is received and when it is completed = 5.8 hours

f) Percentage of the time is Gubser's welder busy = 81%

Explanation:

As given,

Number of jobs = 5

Rate = 8 hour per day

Average hours = 1.3

Standard deviation - 1 hour

a)

Mean arrival = [tex]\frac{No. of jobs}{rate}[/tex]

                    = [tex]\frac{5}{8}[/tex] = 0.6250 per hour

⇒Mean arrival rate in jobs per hour = 0.6250

b)

Mean service rate = [tex]\frac{hour}{average hour}[/tex]

                              = [tex]\frac{1}{1.3}[/tex] = 0.7692 per hour

⇒Mean service rate in jobs per hour = 0.7692

c)

Average number of job waiting for service = [tex]\frac{(0.6250)^{2} (1)^{2} + \frac{0.6250}{0.7692} }{2 ( 1 - \frac{0.6250}{0.7692} )}[/tex]

                                                                       = [tex]\frac{1.05}{0.375}[/tex] = 2.802

⇒The average number of jobs waiting for service = 2.802

d)

Average time a job waits before the welder can begin working on it = [tex]\frac{2.802}{0.6250}[/tex]

                                                                                                                  = 4.5 hr

⇒Average time a job waits before the welder can begin working on it = 4.5 hours

e)

Average number of hours between when a job is received and when it is completed = 4.5 + [tex]\frac{1}{0.7692}[/tex]

                 = 4.5 + 1.3

                 = 5.8 hours

⇒Average number of hours between when a job is received and when it is completed = 5.8 hours

f)

Percentage of the time is Gubser's welder busy = [tex]\frac{0.6250}{0.7692}[/tex] ×100%

                                                                                = 0.8125×100%

                                                                                = 81.25% ≈ 81%

⇒Percentage of the time is Gubser's welder busy = 81%

Dave M. Company issues 500 shares of $10 par value Common Stock and 100 shares of $40 par value Preferred Stock as a basket for a lump sum of $105,000. Total transaction costs paid to complete the sale was $5,000. Common Stock of the company was selling for $198 per share in the market that day and Preferred Stock was selling for $110 per share in the market that day.

Required:
a. Prepare a table showing how the sale price is allocated between the Common Stock and the Preferred Stock.
b. Prepare the journal entry to record the basket sale of the two stocks.

Answers

Answer:

a.

Allocation

Common Stock $94,500

Preferred Stock $10,500

b.

Journal Entry

Cash _____________________________$105,000  

Common stock _____________________ $5000

Paid-in capital in excess of par - Common _$89,500

Preferred stock _____________________$4,000

Paid-in capital in excess of par - Preferred _$6,500  

Explanation:

a.

First, we need to calculate the Market value of both stock using the foloowinf formula

Market value = Numbers of shares x Market value per share

Market value of common stock = 500 x $198 = $99,000

Market value of preferred stock = 100 x $110 = $11,000

Total value = $99,000 + $11,000 = $110,000

Now calculate the weight of each sock

Weight of common stock  $99,000 / $110,000 = 0.90

Weight of preferred stock = $11,000 / $110,000 = 0.10

Allocation of the sale price is as follow

Allocated sale price = Weight of Stock x Sale price

Allocated sale price of common stock = $105,000 x 0.90 = $94,500

Allocated sale price of common stock = $105,000 x 0.10 = $10,500

b.

Common Sock is recorded separately as par value and paid-in capital excess of par as follow

Common Stock ( Par Value ) = 500 x $10 = $5,000

Common Stock ( Excess of Par ) = $94,500 - $5,000 = $89,500

Preferred Stock ( Par Value ) = 100 x $40 = $4,000

Preferred Stock ( Excess of Par ) = $10,500 - $4,000 = $6,500

Annie, a professor of management studies, wants to organize a collaborative project with her students to help them understand various aspects of marketing. She writes down the project goal in a circle in the center of a large sheet of paper. She and her students then brainstorm to identify the tasks that must be done to achieve the goal. She asks the students to write each task in a circle on the sheet and draw lines connecting the various circles. In this scenario, Annie is using a process called:

Answers

Answer:

Mind mapping

Explanation:

Mind mapping is commonly known as a graphic technique. It is used simply for showing or representing ideas, simply by using words, images, symbols, and color. It is patterns based and found in nature and research on how humans think and use their minds. It used to articulate and capture thoughts, ideas, and information as it is a connected relationships that uses structure and logic to thoughts, ideas, and information.

Furthermore, it it characterized by a central main idea, secondary ideas (or topics), also has other many layers of ideas (or sub-topics) importantly to fully capture and articulate the concept.

Assume the following relationships for the Caulder Corp.: Sales/Total assets 1.7× Return on assets (ROA) 5.0% Return on equity (ROE) 13.0% Calculate Caulder's profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Do not round intermediate calculations. Round your answers to two decimal places. Profit margin: % Debt-to-capital ratio: %

Answers

Answer:

Profit margin=3%

Debt-to-capital ratio: = 3.8%

Explanation:

Calculations for Profit margin % and Debt-to-capital ratio: %

Calculation for profit margin

Profit margin =.05/1.7

profit margin=0.03*100

profit margin=3%

Calculation for Debt-to-capital ratio using this formula

Debt-to-capital ratio= ROA * (1 / ROE)

Let plug in the formula

Debt-to-capital ratio = .05 * (1 / .013)

Debt-to-capital ratio = .05 *76.92

Debt-to-capital ratio= 3.8%

Therefore: Profit margin=3%

Debt-to-capital ratio = 3.8%

On August 31, the balance sheet of Bramble Veterinary Clinic showed Cash $12,000, Accounts Receivable $4,700, Supplies $600, Equipment $6,000, Accounts Payable $6,600, Common Stock $16,050, and Retained Earnings $650. During September, the following transactions occurred.

1. Paid $3,500 cash for accounts payable due.
2. Collected $2,050 of accounts receivable.
3. Purchased additional equipment for $2,350, paying $900 in cash and the balance on account.
4. Performed services worth $7,900, of which $2,550 is collected in cash and the balance is due in October.
5. Declared and paid a $2,250 cash dividend.
6. Paid salaries $2,100, rent for September $1,150, and advertising expense $100.
7. Incurred utilities expense for month on account $180.
8. Received $12,000 from Capital Bank on a 6-month note payable.

Required:
Prepare a tabular analysis of the September transactions beginning with August 31 balances.

Answers

Answer:

Total Assets = Total Liabilities + Total Owner's Equity = $35,550

Explanation:

Note: See the attached excel file for the tabular analysis of the September transactions beginning with August 31 balances.

In the attached excel file, Evidence that Assets Equal Liabilities Plus Stockholders' Equity is prepared below the tabular analysis to show that the accounting equation holds as follows:

Total Assets = Total Liabilities + Total Owner's Equity = $35,550

In the attached excel file, the following calculations are performed:

1. Under Transaction 3: Accounts Payable ($) = $2,350 - $900 = $1,450

2. Under Transaction 4: Accounts Receivable = $7,900 - $2,550 = $5,350

When you retire 35 years from now, you want to have $1.25 million. You think you can earn an average of 13.5 percent on your investments. To meet your goal, you are trying to decide whether to deposit a lump sum today, or to wait and deposit a lump sum 2 years from today. How much more will you have to deposit as a lump sum if you wait for 2 years before making the deposit

Answers

Answer:

$19,144.61

Explanation:

The first step would be to determine the present value of $1.25 million. After, the future value of that amount in 2 years has to be calculated

The formula for calculating future value:

P = FV / (1 + r)^n

FV = Future value  

P = Present value  

R = interest rate  

N = number of years

$1.25 million /  (1.135)^35 = $14,861.23

Now we find the future value using this formula :

FV = P (1 + r)^n

$14,861.23 x (1.135)^2 = $19,144.61

Prepare Two Column Cash Book from the following transactions and balance the book on 31st Jan., 2021:-
2021
 

Jan. 1
Cash in hand 50,000; Bank overdraft 1,90,000.

Jan. 2
Purchased goods from Rajesh Kumar of the list price of 50,000 at 5% trade discount and payment made by cheque.

Jan. 6
Goods sold for 80,000 and payment received by cheque. Cheque deposited into Bank on same day.

Jan. 10
Goods purchased for cash 19,800.

Jan. 15
Furniture sold for 1,77,000 and payment received by cheque & cheque deposited into Bank on same day.

Jan. 18
Salaries paid 4,500.

Jan. 21
Settled the amount due to Ram 2,000 by paying cash 1,910.

Jan. 22
Cash received from Jai 14,780 in full settlement of his account of 15,000.

Jan. 23
Paid Life Insurance premium 1,500.

Jan. 31
Deposited with bank the entire balance after retaining 7,000 cash in hand.

Answers

Answer:

On January 21, Balance c/d  are:

Cash = $7,000

Bank = $49,570

Explanation:

Note: See the attached excel file for the Two Column Cash Book.

Also note the following in the attached Two Column Cash Book:

(1) Jan. 1 Bank overdraft 1,90,000 is recorded in the Two Column Cash Book as 190,000 to correct the error in the figure.

(2) Jan. 15 Furniture sold for 1,77,000 is recorded in the Two Column Cash Book as 177,000 to correct the error in the figure.

(3) Jan. 18 Salaries paid 4,500 is assumed to be paid by cheque since no specific form of payment in indicated.

(4) Jan. 23 Paid Life Insurance premium 1,500 is assumed to be paid by cheque since no specific form of payment in indicated.

(5) VN represents Voucher Number.

(5) PR represents Posting Reference.

(6) C represents Contra entry.

(7) The Jan. 31 Bank and Cash (C) of $36,070 which is the entire balance deposited with bank after retaining 7,000 cash in hand is obtained as follows:

Entire balance deposited with bank = Total cash received - Total cash paid - $7,000 retained = $64,780 - ($19,800 + $1,910) - $7,000 = $36,070

(8) Balance c/d represents Balance carried down.

(8) Balance b/d represents Balance brought down.

As part of its hiring process, TE Electronics requires new employees to sign an agreement that requires arbitration in the event of any employment dispute. Jack applied and was hired by TE last summer. On his first day of employment, Jack signed the mandatory arbitration agreement. Jack is an Asian-American, and was recently passed over for promotion. Jack wants to file a charge of discrimination with the EEOC, but his supervisor says he cannot because of the arbitration agreement. Which of the following is true?

a. Jack can file a claim with the EEOC since the Title VII does not permit enforcement of the mandatory arbitration agreement
b. The EEOC can still investigate the matter and take action against TE Electronics it cannot obtain relief for Jack
c. The EEOC is not a party to the mandatory arbitration agreement so it can investigate the claim and can even pursue specific relief for jack including back pay, reinstatement and damages
d. With the mandatory arbitration agreement in place, the EEOC can not do any investigation of Jacks claim

Answers

Answer:

Option C: The EEOC is not a party to the mandatory arbitration agreement, so it can investigate the claim and can even pursue specific relief for Jack including back pay, reinstatement and damages

Explanation:

The Civil Rights Act of 1964 clearly state and prohibits: discrimination relating to employment, education, and public accommodations. In filling of a charge of discrimination with the EEOC, For the charging party's rights be secured, a written charge must be filed with the EEOC within 180 days of the alleged violation.

Equal Employment Opportunity Commission (EEOC) that handles the responsibility of enforcing federal laws that is it make it illegal to discriminate against a job applicant or employee due to race/color, equal, e. t. c.

You work in the customer care division at Flannery Electronics. Mr. Gallegos, a longtime customer, is experiencing a problem with his home theater system and has submitted a letter requesting that Flannery Electronics either fix or replace his system at no cost. Unfortunately, Mr. Gallegos’s customer service and factory warranties expired three months ago. You must write to Mr. Gallegos and inform him that Flannery will be unable to honor his request.
1. Should the tone for this message be formal or informal?
A. Formal
B. Informal
2. Which communication channel would be most appropriate?
A. Phone call
B. Letter
C. Instant message
D. Face-to-face meeting

Answers

Answer:

1. A. Formal

2. C. Instant message

Explanation:

In this scenario, you are running a business and as such the tone of any message to a customer or potential client should always be formal. Since you have a set public policy for the warranty the best communication channel would be Instant Message or E-mail. This way you can provide a copy of your return policy so that the individual understands that you are not obligated to perform any actions since their warranty has already expired.

what is the main difference between regular work hours and overtime​

Answers

Answer:

regular work hour- employee are expected to on the basis of their employment contract.

overtime- hours worked exceed normally scheduled working hours.

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