Krall Company recently had a computer malfunction and lost a portion of its accounting records. The company has reconstructed some of its financial performance measurements including components of the return on investment calculations.
Help Krall rebuild its information database by completing the following table:
Return on Investment Profit Margin Investment Turnover Operation Income Sales Revenue Average Invested Assets
? ? ? $ 70,000 $ 700,000 $1,400,000
? 8% 0.50 100,000 ? 2,500,000
? 12% 1.25 ? 1,400.000 ?
10% ? 2.00 ? 600,000 ?

Answers

Answer 1

Answer and Explanation:

The missing amount is as follows:

Return on        Profit     Investment    Operation   Sales           Average

Investment      Margin      Turnover       Income     Revenue   Invested Assets

5%                    10%             0.50             $70,000   $700,000    $1,400,000

(0.50% of 10)  ($70,000       ($700,000 ÷

                        ÷ $700,000)  $1,400,000)

4%                     8%              0.50           $100,000    $1,250,000  $2,500,000

(0.50 of 8%)                                                      (0.50 of $2,500,000)

15%                    12%             1.25           $168,000   $1,400,000    $1,120,000

(1.25 of 12%)                           (12% of $1,400,000) ($1,400,000 ÷ 1.25)

10%                    5%                2           $30,000     $600,000          $300,000

                ($30,000 ÷ $600,000)  (10% of $300,000)   ($600,000 ÷ 2)

     

Answer 2

The formula for investment =

[tex]margin*turnover[/tex]

The formula for profit margin =

[tex]\frac{Operations Income}{SalesMargin}[/tex]

The formula for investment turnover =

[tex]\frac{SalesRevenue}{AverageInvestedAssets}[/tex]

The formula average invested assets =

[tex]\frac{SalesRevenue}{InvestmentTurnover}[/tex]

These formulas are what would be used to fill in the missing values in the excel sheet that I have added as an attachment.

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Krall Company Recently Had A Computer Malfunction And Lost A Portion Of Its Accounting Records. The Company

Related Questions

The IPO process involves several entities, such as the issuing company, institutional investors, brokers, lawyers, regulators, retail investors, and an intermediary company. Consider the following IPO deal:

In 1999, Goldman Sachs Group and its partners, Sumitomo Bank Capital Markets Inc. and Kamehameha Activities Association, raised $3.6 billion its initial public offering in the United States and Canada. Goldman Sachs & Co., Bear Stearns & Co. Inc., Credit Suisse First Corporation, Lehman Brothers Inc., and J.P. Morgan Securities Inc. became some of the U.S. representatives the deal by entering into an agreement to sell a certain number Of shares to potential investors at a predetermined.

Identify one of the underwriters in the IPO deal described above.
a. J.P. Morgan Securities Inc.
b. Kamehameha Activities Association

Answers

Answer:

The IPO Process

One of the underwriters in the IPO deal described above is.

a. J.P. Morgan Securities Inc.

Explanation:

J.P. Morgan Securities Inc. and the following underwriters, Goldman Sachs & Co., Bear Stearns & Co. Inc., Credit Suisse First Corporation, and Lehman Brothers Inc. was involved in the Initial Public Offering (IPO) in 1999, where $3.6 billion was raised in the United States and Canada.  An underwriter is a financial specialist, working closely with the issuing houses to determine the initial offering price of the securities.  The underwriters usually buy the securities from the issuer and then sell them to investors using its distribution network.

What is true about the relationship between household consumption and disposable income?

Answers

Answer:

Both have positive relationship with each other

Explanation:

In simple words, Consumption rises in lockstep with current revenue and that the higher the marginal inclination to purchase, the much more present expenditure is influenced by current disposable revenue . The consumption-smoothing impact is higher when the marginal willingness to consume is low.

  Thus, from the above we can conclude that both have non linear positive relation.

Explain why a finance manager need to understand accounting information even if the firm has a trained accountant on its staff.

Answers

Answer:

Following are the solution to the given question:

Explanation:

A financial manager should understand adequate information on accountancy. This is irrespective of whether the business does have a trained counterpart.

Accountancy is a necessary input into the function of financial management. Throughout the extent, as accounts were important input in financial decision-making is closely connected with both the interaction between finance and financial.

Accrual analysis provides information mostly on the company's operations. The result of the accountancy is accounts like the income statement, the income statement, and the position financial adjustments report. The information in such statements helps money advisors assess a company's previous growth and career projections.

The purpose of accountancy in the choice process is to gather and provide financial data on the institution's past, present, and future activities.

During the economic transaction, the finance department uses these data. This is not possible for money advisors to collect data or to make choices from accounts. And an investor's primary focus is to collect data and display it, whereas budgeting, control, and judgment are the main job of a financial manager. In a sense, financial management starts at the end of accountancy.

If the best surgeon in town is also the best at cleaning swimming pools, then according to economic reasoning, this person should

Answers

Answer:

specialize in being a surgeon because its opportunity cost is lower.

Explanation:

Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.

Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.

Assuming the best surgeon in town is considered to be the best at cleaning swimming pools, then from an economic perspective and reasoning, this person should specialize in being a surgeon because its opportunity cost is lower.

This ultimately implies that, the benefits, profits or value associated with cleaning swimming pools i(alternative forgone) is lower compared to what is obtainable from being a surgeon.

A manufacturer reports the information below for three recent years.
Year 1 Year 2 Year 3
Variable costing income 140,000 146,400 143,950
Beginning finished goods inventory (units) 0 2,200 1,700
Ending finished goods inventory (units) 2,200 1,700 1,800
Fixed manufacturing overhead per unit 1.20 1.20 1.20
Compute income for each of the three years using absorption costing.
Year 1 Year 2 Year 3
Absorption costing income

Answers

Answer:

Year 1

Fixed Overhead in ending inventory = (2,200 * $1.20) = $2,640

Year 2

Fixed Overhead in ending inventory = (1,700 * $1.20) = $2,040

Fixed overhead in beginning inventory = (2,200 * $1.20) = $2,640

Year 3

Fixed Overhead in ending inventory = (1,800 * $1.20) = $2,160

Fixed overhead in beginning inventory = (1,700 * $1.20) = $2,040

                     Absorption costing income

Particulars                                                    Year 1         Year 2       Year 3

Variable costing income                           $140,000     $146,400   $143,950

Fixed Overhead in ending inventory        $2,640        $2,040       $2,160

Fixed overhead in beginning inventory    $0               ($2,640)     ($2,040)

Absorption costing income                      $142,640   $145,800  $144,070

Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a particular item were available for sale during the calendar year:

Jan. 1 Inventory 4,000 units at $40
Apr. 19 Sale 2,500 units
June 30 Purchase 4,500 units at $44
Sept. 2 Sale 5,000 units
Nov. 15 Purchase 2,000 units at $46

Required:
The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale.

Answers

Answer:

Cost of goods sold:

Apr. 19 =  $100,000

Sept. 2 = $215,000

Inventory Balance on:

Apr. 19 =  $60,000

Sept. 2 =  $43,000

Explanation:

a) Data and Calculations:

Date        Description  Units Unit Price  Inventory  Cost of Sales

Jan. 1       Inventory    4,000    $40       $160,000

Apr. 19     Sale            2,500    $40        $60,000      $100,000

June 30  Purchase    4,500    $44      $258,000 ($44 * 4,500 + $60,000)

Sept. 2    Sale            5,000    $43         $43,000     $215,000

Nov. 15   Purchase    2,000    $46       $135,000 ($46 * 2,000 + $43,000)

Suppose banks increase excess reserves by $ 471845 . If the reserve ratio is 12 percent, what is the maximum increase in the money supply

Answers

Answer:

$3,932,025.94

Explanation:

Multiplier = 1 / rr

Multiplier = 1 / Reserve ratio

Multiplier = 1 / 0.12

Multiplier = 8.3333

Increase in money supply = Multiplier * Increase in excess reserves

Increase in money supply = 8.3333 * $471,845

Increase in money supply = $3,932,025.94

So, the maximum increase in the money supply is $3,932,025.94.

If nominal GDP is $1,200 billion and, on average, each dollar is spent five times in the economy over a year, then the quantity of money demanded for transactions purposes will be?

Choices
1,200
6,000
600
240
960

Answers

Answer: 6000



Explanation:

Out of the choices provided above, it can be concluded to state that the quantity of money demanded for transactions will be $6,000 if the conditions given above with respect to the nominal GDP are satisfied in an economic situation. Therefore, the option B holds true.

What is the significance of nominal GDP?

The nominal GDP of an economy can be referred to or considered as the unit of measurement that is used to represent the final value of finished goods and services, where no adjustments for the prevailing inflation rates are taken into consideration.

The quantity of money demanded can be computed using the given nominal GDP's information as under,

Quantity of Money Demanded = Nominal GDP x Dollar Spending

Quantity of Money Demanded = 1200 × 5

Quantity of Money Demanded = $6,000

Therefore, the option B holds true and states regarding the significance of nominal GDP.

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Division of labor and specialization

Answers

Answer:

Division of Labour vs Specialization. Basically, both these concepts involve dividing the main process into different tasks, assigning each task to individual workers or group of workers. Thus, there is no significant difference between division of labour and specialization.

Explanation:

A 20-year, 8% semiannual coupon bond with a par value of $1,000 may be called in 5 years at a call price of $1,040. The bond sells for $1,100. (Assume that the bond has just been issued.)

Required:
a. What is the bond's yield to maturity?
b. What is the bond's current yield?
c. What is the bond's capital gain or loss yield?
d. What is the bond's yield to call?

Answers

Answer:

A. 3.57%

B. 7.27%

C. 5.45%

Explanation:

a. Calculation to determine What is the bond's yield to maturity

Using this formula

SemiannualYTM=PMT+Par−Price÷N÷Par+Price/22

Where,

Par = $1,000

Annual payment = $1,000 x 8% = $80

Semiannual payment = $80 x 0.5 = $40

Price = $1,100

Call price = $1,040

Time to call = 5 years

Time to maturity = 20 years

Let plug in the formula

SemiannualYTM=$40+$1,000−$1,100÷20×2÷$

1,000+$1,100/2

SemiannualYTM=3.57%

b. Calculation to determine What is the bond's current yield

Using this formula

Current yield=Annual payment/price

Let plug in the formula

Current yield=80/1100

Current yield=7.27%

c. Calculation to determine What is the bond's capital gain or loss yield

Using this formula

Capital loss=Call price-Current price/Current price

Let plug in the formula

Capital loss=1040-1100/1100

Capital loss=5.45%

On July 15, 2021, M.W. Morgan Distribution sold land for $41.0 million that it had purchased in 2016 for $26.0 million.

Required:
What would be the amount(s) related to the sale that Morgan would report in its statement of cash flows for the year ended December 31, 2021, using the direct method?

Answers

Answer:

$41.0 million

Explanation:

Calculation to determine the amount(s) related to the sale that Morgan would report in its statement of cash flows for the year ended December 31, 2021, using the direct method

DIRECT METHOD:

CASH FLOWS FROM INVESTING ACTIVITIES:

Cash proceeds received from sale of land $41.0 million

Therefore the amount(s) related to the sale that Morgan would report in its statement of cash flows for the year ended December 31, 2021, using the direct method is $41.0 million

While on a trip to South Africa, Madison was impressed with the colorful woven outdoor placemats, floor mats, chair cushions, and umbrellas that local artisans were weaving. Upon returning to the United States, she was confident that U.S. consumers would be as intrigued by these accessories as she was. Madison decided to explore the possibility of starting an import business to bring these products to the United States. Which statement seems to be good advice for Madison?

Answers

Answer: A) Learn from others who import goods from abroad, and particular from Africa.

Explanation:

Nothing beats experience when it comes to acquiring knowledge so if Madison wants to acquire the knowledge necessary to bring the goods she saw in South Africa to the U.S., she should go to people who have experience in the matter and find out what they know.

This will giver her insight on the amount of money she needs to startup with as well as what business status she should have. They will also give her insight into cost cutting measures to enable her import with more efficiency and make more profit.

On June 1, 2018, Crane Company and Cheyenne Company merged to form Ayayai Inc. A total of 876,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2020, the company issued an additional 637,000 shares of stock for cash. All 1,513,000 shares were outstanding on December 31, 2020. Ayayai Inc. also issued $600,000 of 20-year, 8% convertible bonds at par on July 1, 2020. Each $1,000 bond converts to 44 shares of common at any interest date. None of the bonds have been converted to date. Ayayai Inc. is preparing its annual report for the fiscal year ending December 31, 2020. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,491,000. (The tax rate is 20%.)
Determine the following for 2020.
(a) The number of shares to be used for calculating:
(1) Basic earnings per share
(2) Diluted earnings per share
(b) The earnings figures to be used for calculating:
(1) Basic earnings per share
(2) Diluted earnings per share

Answers

Answer:

A-1 Basic earnings per share=$1,353,750

A-2 Diluted earnings per share = 2,136,650

B-1 Basic earnings per share $1,491,000

B-2 Diluted earnings per share= $1,510,200

Explanation:

(a)Calculation of number of shares to be used for calculating

(1) Basic earnings per share = (876,000*3/12) + (1,513,000*9/12)

Basic earnings per share=$219,000+$1,134,750

Basic earnings per share=$1,353,750

Therefore Basic earnings per share is $1,353,750

(2) Diluted earnings per share = (876 000*3/12) (1,513,000*3/12) + (1,513,000 + ($600000/$1000 * 44)

Diluted earnings per share =219,000+378,250+(1,513,000+26,400)

Diluted earnings per share =219,000+378,250+1,539,400

Diluted earnings per share = 2,136,650

Therefore Diluted earnings per share is 2,136,650

(b) Calculation of earnings figures to be used for

(1) Calculation to determine the Basic earnings per share

Using this formula

Basic earnings per share = Net income after tax

Let plug in the formula

Basic earnings per share= $1,491,000

Therefore Basic earnings per share is $1,491,000

(2) Calculation to determine Diluted earnings per share

First step is to calculate the interest expense after tax adjustment

Interest Savings ($600000 * 8% * ½) $24000

Additional Tax ($24000 * 20%) $4800

Interest expense after tax adjustment $19,200

Now let calculate the Diluted earnings per share

Using this formula

Diluted earnings per share = Net income + interest expense after tax adjustment

Let plug in the formula

Diluted earnings per share= $1,491,000 +$19,200

Diluted earnings per share= $1,510,200

Therefore Diluted earnings per share is $1,510,200

Please be prepared to give your presentation on the monthly sales figures at our upcoming staff meeting. In addition to the accurate accounting of expenditures for the monthly sales, be ready to discuss possible reasons for fluctuations as well as possible trends in future customer spending. Thank you. The main focus of the presentation will be _

Answers

Answer:

The main focus of presentation will be Sales forecast and expected revenue.

Explanation:

In the presentation the main focus will be the sales forecast. The monthly budgeted sales will be presented to the team and target should be made realistic so that they are achievable. There can be fluctuations in the sales because of seasonal effect or due to some other reasons. The trend should be analyzed before determining the sales targets.

Kawamura, a careful utility maximizer, consumes peanut butter and ice cream. Assume that both peanut butter and ice cream are normal goods and that diminishing marginal utility applies to both goods. Right after he achieves the utility-maximizing level of consumption of the two goods, the price of peanut butter falls. After he adjusts to this event, the marginal utility of peanut butter goes _____ and that of ice cream goes _____.

Answers

Answer:

The marginal utility of peanut butter goes down and that of ice cream goes up.

Explanation:

The substitution effect states that when the price of a product falls, it will lead to a rise in the quantity demanded of the product as buyers will buy more of the product that is now relatively cheaper.

And as more of a good is bought, its marginal utility falls. And as less of a product is bought, its marginal utility increases.

Based on the above explanation therefore, the marginal utility of peanut butter goes down and that of ice cream goes up after Kawamura adjusts to the event.

This is because as more of peanut butter is bought due to the fall in its price, its marginal utility falls. And as less of ice cream is bought as it is now relatively more expensive, its marginal utility increases.

Vertical analysis can best be described as a technique for analyzing the percentage change in individual financial statement line items from one accounting period to the next.

a. True
b. False

Answers

Answer:

False

Explanation:

Vertical analysis can be regarded as accounting tool which gives room for

proportional analysis of some documents. This document is usually

financial statements.In carrying out vertical analysis, all the item line that is on the financial statement is been recorded as percentage of another item. Instance of this is an income statement.

Heavy use of long-term debt can be of benefit to a firm to help expand, although it adds to the firm's overall level of risk.
A. True
B. False.

Answers

Answer:

A

Explanation:

Long term debt is debt that has a maturity that is longer than a year.

The higher the use of debt, the higher the risk a firm takes on. This is because the greater the use of debt, the higher the chances of the firm defaulting on debt.

firms that use a high amount of debt, have an higher beta. As a result of the higher beta, the required return is also higher.

use of long-term debt provides firms with the necessary cash flows that would be needed to carry out necessary projects. Thus, it benefits a firm by helping it expand

Why are Americans dependent of what is produced in other countries

Answers

Answer:

Climate, resources, cheap labor and outsourcing of manufacturing jobs.

Explanation:

As a developed country, labor cost are higher in the US in comparison to most of world. US consumers expect best price for their money. So many manufacturers have moved overseas to keep labor cost low and make a better profit while satisfying their consumers. Then mass ship items to keep cost low. Also some produced can only be grown in climates that the US doesn't have. There are some resources the US have that others countries. The mineral gold is much more plentiful in Africa but is widely used in electronics. The US is a prime buyer of electronics.

) For humanitarian reasons, Taco Loco decides they would rather make product X than product Y. The dollar amount that they can both increase the price of Y and reduce the price of X by to accomplish this reversal of demand is

Answers

Answer:

81.80 cents.

Explanation:

Taco Laco should produce Y but should not produce X. The product X is not beneficial for Taco Laco. If the company decides to reduce the price of product X by 0.82 cents then its optimal product mix will contain zero units of X.

Determine: SHOW ALL WORK a. Predetermined factory overhead rate. $ b. Determine the factory overhead applied assume the actual direct labor hours for Job 50 was. 20000 and for J0b 51 was 24000 . $ c. Determine the balance in the factory overhead account assuming that the actual cost

Answers

Answer:

Note See complete question as attached as picture below

a. Predetermined factory overhead rate = Estimated factory overhead cost / Direct labr hours

Predetermined factory overhead rate = $1,750,000 / 500,000 hours

Predetermined factory overhead rate = $3.50 per direct labor hours

b. Particulars                         Amount

Job 50 (20,000*3.50)           $70,000    

Job 51 (24,000*3.50)            $84,000

Factory overhead applied    $154,000

c. Balance in factory overhead = $154,000 - $153,000

Balance in factory overhead = $1,000

d. Over-applied factory overhead = $1,000

Eric, a ghost writer, conducted market research and discovered a niche market in writing scripts for corporate online videos. He also knows now the market will bear $250 per script. What question should he ask next about placement of his marketing mix

Answers

Answer: What is the best way to get his service to his target customers

Explanation:

Market research is the process of determining how viable a product will be after research has been conducted in the market. This is vital in getting opinions of customers.

Marketing mix are the marketing tools which an organization can use in order to pursue its marketing objectives.

The question that should be asked about the marketing mix placement is "What is the best way to get his service to his target customers". This is vital in knowing the best method to use in making the product available to the customers.

Kentucky Corporation uses a process-cost accounting system. The company adds direct materials at the start of its production process; conversion cost, on the other hand, is incurred evenly throughout manufacturing. The firm has no beginning work-in-process inventory; its ending work in process is 40% complete. Which of the following sets of percentages would be used to calculate the correct number of equivalent units in the ending work-in-process inventory?
A. Materials, 40%; conversion cost, 40%.
B. Materials, 40%; conversion cost, 100%.
C. Materials, 100%; conversion cost, 40%.
D. Materials, 100%; conversion cost, 60%.
E. Materials, 100%; conversion cost, 100%.

Answers

Answer:

The following sets of percentages would be used to calculate the correct number of equivalent units in the ending work-in-process inventory:

D. Materials, 100%; conversion cost, 60%.

Explanation:

The above is actually the best option which would be used to calculate the correct number of equivalent units in the ending work-in-process inventory.

Irwin Company has budgeted direct labor hours for the coming three months as follows: July, 6,500 hours; August, 8,100 hours; and September, 8,300 hours. Manufacturing overhead is budgeted at $13,300 per month plus $3.30 per direct labor hour. What is the budgeted manufacturing overhead for August

Answers

Answer:

the  budgeted manufacturing overhead for August is $40,030

Explanation:

The computation of the budgeted manufacturing overhead for August is shown below:

= Budgeted manufacturing overhead + direct labor hour rate × direct labor hours for august

= $13,300 + $3.30 × 8,100 hours

= $13,300 + $26,730

= $40,030

Hence, the  budgeted manufacturing overhead for August is $40,030

a sales rep, has just learned that she will be allowed to text with her colleagues and clients during work hours. What is the best advice you can give her to ensure that she is using this tool professionally

Answers

Answer:

Remember this is your workplaces, if you wouldn't do it in front of your boss, dont do it at all.

Explanation:

It can be very tempting to text or play on your phone while bored at work. It's best to put it away and use it only during lunch.

For each transaction:
a. analyze the transaction using the accounting equation
b. record the transaction in journal entry form
c. post the entry using T-accounts to represent ledger accounts.

1. On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $7,000 in cash along with equipment having a $3,000 value in exchange for common stock.
2. On May 21, Elegant Lawns purchases office supplies on credit for $500.
3. On May 25, Elegant Lawns receives $4,000 cash for performing landscaping services.
4. On May 30, Elegant Lawns receives $1,000 cash in advance of providing landscaping services to a customer.

Answers

Answer:

Elegant Lawns

a. Analysis of transactions using the accounting equation:

1. May 15, Assets Cash $7,000 Equipment $3,000 Equity: Common stock $10,000

2. May 21, Assets: Office supplies $500 Liabilities: Accounts Payable $500

3. May 25, Assets: Cash $4,000 Equity: Service Revenue $4,000

4. May 30, Assets: Cash $1,000 Equity: Service Revenue $1,000

b. Journal Entries:

Date          Account Titles        Debit        Credit

1. May 15, Assets: Cash         $7,000

Assets: Equipment                $3,000

Equity: Common stock                             $10,000

2.

May 21, Assets: Office supplies $500

Liabilities: Accounts Payable                       $500

3. May 25, Assets: Cash       $4,000

Equity: Service Revenue                          $4,000

4. May 30, Assets: Cash       $1,000

Equity: Service Revenue                          $1,000

c. T-accounts:

Cash

Date          Account Titles        Debit        Credit

1. May 15   Common stock     $7,000

3. May 25, Service revenue    4,000

4. May 30, Service revenue    1,000

Equipment

Date          Account Titles        Debit        Credit

1. May 15   Common stock     $3,000

Office Supplies

Date          Account Titles        Debit        Credit

2. May 21, Accounts Payable $500

Common Stock

Date          Account Titles        Debit        Credit

1. May 15   Cash                                        $7,000

1. May 15   Equipment                                3,000

Accounts Payable

Date          Account Titles        Debit        Credit

2. May 21, Office supplies                         $500

Service Revenue

Date          Account Titles        Debit        Credit

3. May 25, Cash                                       $4,000

4. May 30, Cash                                          1,000

Explanation:

a) Data and Analysis with Accounting Equation:

1. May 15, Assets Cash $7,000 Equipment $3,000 Equity: Common stock $10,000

2. May 21, Assets: Office supplies $500 Liabilities: Accounts Payable $500

3. May 25, Assets: Cash $4,000 Equity: Service Revenue $4,000

4. May 30, Assets: Cash $1,000 Equity: Service Revenue $1,000

Your sister just deposited $5,500 into an investment account. She believes that she will earn an annual return of 8.8 percent for the next 6 years. You believe that you will only be able to earn an annual return of 8 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 6 years

Answers

Answer:

$5749.02

Explanation:

The first step is to determine the future value of my sister's deposit

The formula for calculating future value:

FV = P (1 + r)^n

FV = Future value  

P = Present value  

R = interest rate  

N = number of years

5500 (1.088)^6 = $9122.97

the second step is to determine the present value of  $9122.97 using an interest rate of 8%

$9122.97 / (1.08)^6 = $5749.02

____________- allows more than one variable at a time to be changed, and it takes into account the probabilities of changes in the key variables.

Answers

Answer:

scenario analysis

Explanation:

scenario analysis  estimates changes that would result from a hypothetical change in the market or a reoccurrence of an historical event.

types of scenario analysis

1. historical scenarios : scenarios measure an hypothetical change that would result from a repeat of a particular period of financial history.

2. Hypothetical scenarios : scenarios have never occurred and are just conjured for the sake of analysis.

Sensitivity measures the impact of the change of one variable.

what is least likely to get managers to act in best interest of the owner threat of a prozy fight stock option plans

Answers

Answer:

The least likely to get managers to act in the best interest of the owner is:

stock option plans.

Explanation:

But with the threat of a proxy fight, managers get up to speed, acting in the best interest of the owners of the firm because their jobs are at stake.  The main purpose of a proxy fight is the removal of the current management of the firm.  During a proxy fight, contest, or battle, some shareholders in a company attempt to oppose and vote out the current management or board of directors.  On the other hand, stock option plans reward managers with employee ownership rights at discounted prices.

Sheridan Corporation had 2020 net income of $798,000. During 2020, Sheridan paid a dividend of $2 per share on 33,200 shares of preferred stock. During 2020, Sheridan had outstanding 236,000 shares of common stock.

Required:
Compute Sheridan's 2020 earnings per share.

Answers

Answer:

$3.10 per share

Explanation:

Total preferred dividend = 33,200 shares * $2

Total preferred dividend = $66,400

Earning per share = (Net income - Preferred dividend) / Number of common stock outstanding

Earning per share = ($798,000 - $66,400) / 236,000 shares

Earning per share = $731,600 / 236,000 shares

Earning per share = $3.10 per share

You own a golf course in Florida and you need to determine how many golf carts you need to buy to maximize profits. Please answer the following questions given the information below.
A brand new golf cart costs 2000 rounds of golf and the rate of depreciation is 5%.
The real interest rate is 8%
The expected marginal product of capital is given by MPKf = 1000 – 10K.
a) What is the user cost of capital and what is it expressed in?
b) How many golf carts should you buy to maximize profits (i.e., what is K*)?​
c) Draw a graph (the uc / MPK graph) depicting the state of affairs and label this initial profit maximizing point as point A.​
Now suppose the (local) government with all their financial shortfalls embarks on a campaign to raise revenue to fund the fire department by imposing a so-called "luxury tax" (we know it as τ) equal to 15% of gross revenue. What happens to the profit maximizing number of golf carts? Please show all work and round to two decimal places.

Answers

Answer:

a) 260 rounds of golf

b) 74

c) attached below

d) 70 golf carts

Explanation:

a) Calculate the user cost of capital and what is it expressed in

user cost of capital = total depreciation + total interest

= ( rate of depreciation * Golf cart cost ) + ( real interest rate * Golf cart cost )

= ( d + r ) Golf cart cost

= ( 0.05 + 0.08 ) 2000 = 260 rounds of golf

b) determine the number of carts that should be bought to maximize profits

Profits are maximized when User Cost of capital = MPKF

(d +r) Golf cart cost = MP Kf = 1000 – 10K

( 0.05 + 0.08 ) 2000 = 1000 – 10K

260 = 1000 – 10K     ∴ K = ( 1000 - 260 ) / 10 = 74

c) attached below is the required graph

d) Determine what happens to the profit maximizing number of golf carts

User cost of capital ( 1 - t ) = MPK^f

∴ User cost of capital ( 1 - t ) = 1000 – 10K

260 ( 1 - 0.15 ) = 1000 – 10K

305.88 = 1000 – 10K

K=69.41

that is approximately 70 golf carts is been bought to maximize profit

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