Answer: $3080
Explanation:
Larry's maximum allowable charitable contribution if his AGI is $61,900 will be calculated as the addition of the $2,590 to a church and the worth of $490 of household items. This will be:
= $2590 + $490
= $3080
Therefore, the answer is $3080
On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the note were $9,000 face value and 7% interest. On October 30, the journal entry to record the collection of the note should include a a.Interest Revenue for $358. b.Credit to Interest Revenue for $158. c.Notes Receivable for $258. d.Interest Receivable for $58.
Answer:
b.Credit to Interest Revenue for $158.
Explanation:
the journal entry to record the acceptance of the note receivable:
August 1, note receivable accepted from Hsu Company
Dr Notes receivable 9,000
Cr Service revenue 9,000
the journal entry to record the collection of cash:
October 30, cash collected from Hsu Company
Dr Cash 9,158
Cr Notes receivable 9,000
Cr Interest revenue 158
Fortune Company had beginning raw materials inventory of $16,000. During the period, the company purchased $92,000 of raw materials on account. If the ending balance in raw materials was $10,000, the amount of raw materials transferred to work in process is
Answer:
The amount of raw materials transferred to work in process is $98,000.
Explanation:
Given that, at the beginning of its business operations, Fortune Company had a raw material inventory of $ 16,000 and that, during the business year, it acquired another quantity of raw materials for $ 92,000, the total of raw materials in the company's stock had a total value of $ 108,000 (16,000 + 92,000).
Now, if at the end of the balance the value of the raw materials was $ 10,000, the amount of raw material that was incorporated into the production process was a value of $ 98,000 (108,000 - 10,000).
Shares of Corporation have a beta of 0.90. The market risk premium is 7%, and
the risk-free rate is 8%. Corporation paid a dividend of $1.80 per share, and the
dividend is expected to grow at 7% forever. The share currently sells for $25.
Corporation has a debt-equity ratio of 50%. Its cost of debt is 8%, before taxation,
taxation rate is 30%.
What is the weighted average cost of capital of Corporation?
Answer:
The weighted average cost of capital of Corporation is 11.4%
Explanation:
Now use following formula to calculate the weighted average cost of equity
WACC = ( Weight of equity x Cost of equity ) + ( Weight of debt x Cost of debt (after tax ) )
Weight
Equity = 100%
Debt = 50%
Cost
First we need to calculate the cost of equity using CAPM formula
Cost of equity = Risk free rate + Beta x ( Market risk premium )
Placing values in the formula
Cost of equity = 8% + 0.90 x 7%
Cost of equity = 14.3%
Cost of debt = 8%
Cost of debt (after tax ) = 8% x ( 1 - 30% ) = 5.6%
Placing values in the formula of Weighted average cost of capital
WACC = ( ( 100%/150% ) x 14.3% ) + ( ( 50% / 150% ) x 5.6% )
WACC = 9.53% + 1.87%
WACC = 11.4%
Potash Corporation acquired the voting stock of Safestyle Company on January 1, 2019 for $50 million. Safestyle's book value at the time was $10 million, consisting of $2 million of capital stock and $8 million of retained earnings. The $40 million difference between fair and book value was attributed to goodwill. It is now December 31, 2020, the end of the accounting year and two years after the acquisition. Safestyle's January 1, 2020 retained earnings balance is $11 million, and it reports net income of $1.8 million for 2020. Safestyle declares no dividends and has no other comprehensive income. Goodwill from the acquisition was impaired by $1 million in 2019 and $500,000 in 2020. Potash uses the complete equity method to report its investment in Safestyle on its own books. Support What is the December 31, 2020 balance for Investment in Safestyle, reported on Potash's books?
A. $53,300,000
B. $52,000,000
C. $50,000,000
D. $54,800,000
Answer: A. $53,300,000
Explanation:
Year 2019 balance for Investment
= Cash + Net income - amortization
Net income = Beginning retained earnings 2020 - Beginning retained earnings 2019
= 11 - 8
= 3 million
Balance 2019 = 50 + 3 - 1
= $52 million
Year 2020 balance
= Opening balance + Net income - amortization
= 52 + 1.8 - 0.5
= $53.3 million
= $53,300,000
Why is "inventory turns" an important metric?
Explanation:
The metric, number of inventory turns, aims to measure the movement of stock. The higher the turnover, the less time your inventory spends sitting in storage. The number of inventory turns, also known as stock turn, is calculated by taking the value of stock purchased, divided by the value of stock on hand
The composition of the Fingroup Fund portfolio is as follows:_________.
Stock Shares Price
A 200,000 $35
B 300,000 40
C 400,000 20
D 600,000 25
The fund has not borrowed any funds, but its accrued management fee with the portfolio manager currently totals $30,000. There are 4 million shares outstanding. What is the net asset value of the fund?
Answer: $10.49
Explanation:
Net Asset Value is the equity of the portfolio divided by the number of shares outstanding.
Equity = Assets - Liabilities
So,
Net Asset Value = (Assets - Liabilities) / No. of shares outstanding
Assets = (200,000 * 35) + (300,000 * 40) + (400,000 * 20) + (600,000 * 25)
= $42,000,000
Liabilities will be the accrued management fee.
Net Asset Value = (42,000,000 - 30,000) / 4,000,000
= 10.4925
= $10.49
When people refer to jobs in the public sector they are referring to jobs with:
O A. The federal government
B. A local business
OC. A large corporation
D. A franchise
Using the lower of cost or market, what should the total inventory value be for the following items:_____. Item Quantity Unit Cost Price Unit Market Price Total Cost Price Total Market Price Lower of Cost or Market A 220 $9 $11 $1,980 $2,420 $fill in the blank 1 B 94 $17 $13 $1,598 $1,222 $fill in the blank 2 C 42 $25 $28 $1,050 $1,176Apply the lower-of-cost-or-market method to inventory as a whole.
Answer:
$ 4252 is the lower cost price.
Explanation:
Using lower of cost price or lower of market price :
Item Total cost price Total market value Lower of cost or market price
A $ 1980 $ 2420 $ 1980
B $ 1598 $ 1222 $ 1222
C $ 1050 $ 1176 $ 1050
$ 4252
You have $135,000 on deposit with no outstanding checks or uncleared deposits. One day you write a check for $49,000.
Required:
a. Does this create a disbursement float or a collection float?
b. What is your available balance?
c. What is your book balance?
Answer:
a. Does this create a disbursement float or a collection float?
A disbursement float occurs when you write a check and hand it out, but the person that receives the check hasn't cashed it yet. You do not owe the money anymore, but it still appears on your bank account.
b. What is your available balance?
your bank account balance = $135,000
c. What is your book balance?
book balance = $135,000 - $49,000 = $86,000
Omega Enterprises budgeted the following sales in units:
January 40,000
February 30,000
March 50,000
Omega's policy is to have 30% of the following month's sales in inventory. On January 1, inventory equaled 8,000 units. February production in units is:_________
a, 20,000.
b. 26,500.
c. 40,000.
d. 36,000.
e. 28,000
Answer:
d. 36,000
Explanation:
Given the following data,
Units;
February = 30,000
March = 50,000
In order to calculate February production in units, the sales for the month and the required ending inventory will be added together and then deduct the beginning inventory.
February Production in units ;
Sales for the month = 30,000
Ending inventory = [50,000 × 0.3] = 15,000
Beginning inventory = [30,000 × 0.3] = [9,000]
Total = 36,000 units.
NTR Corporation has offices in both Los Angeles and San Francisco. In the Los Angeles office, the account number for cash is 1.101. In San Francisco, the account number for cash is 2.101. What type of coding system does NTR Corporation use?
Answer:
Faceted Coding
Explanation:
Faceted coding system is basically a type of sequential coding. The main difference is that the first letters or numbers of the accounting codes represent different locations, departments, business units, stores, etc.
In this case, the first 1 in 1.101 denotes the Los Angeles office, while the 2 in 2.101 denotes the San Francisco office. Each period (or underscore, etc.) represents a different cost field or category. In this example, the .101 represents cash account.
What is it called when a person's behavior in the workplace creates circumstances that make it difficult for someone else of a particular sex to do his or her work?
3M Co. reports beginning raw materials inventory of $855 million and ending raw materials inventory of $717 million. Assume 3M purchased $3,646 million of raw materials and used $3,784 million of raw materials during the year. Compute raw materials inventory turnover and the number of days' sales in raw materials inventory.
Required:
Compute raw materials inventory turnover and the number of days' sales in raw materials inventory.
You purchase a Par Value $1,000, 9% coupon, two-year maturity bond for $990. What is the annual required rate of return (YTM)?
Answer:
the annual required rate of return is 9.57%
Explanation:
The computation of the required rate of return is shown below:
Given that
Future value = $1,000
Present value = $990
PMT = $1,000 × 9% = $90
NPER = 2
The formula is shown below:
=RATE(NPER;PMT;-PV;FV;TYPE)
The present value comes in negative
After applying the above formula, the annual required rate of return is 9.57%
Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is units. Southeastern estimates its annual holding cost for this item to be $ per unit. The cost to place and process an order from the supplier is $. The company operates days per year, and the lead time to receive an order from the supplier is working days. a) What is the economic order quantity? nothing units (round your response to the nearest whole number).
Answer:
A. Economic order quantity= 319
B. Annual holding costs= 3,669
C. Annual ordering costs= 3,669
D. 154
Explanation:
a) Calculation for the economic order quantity
Using this formula
Economic order quantity=√2*Demand*Cost order/Annual holding cost
Let plug in the formula
Economic order quantity=√2*15,400*76/23
Economic order quantity=√2,340,800/23
Economic order quantity=√101,774
Economic order quantity= 319
b) Calculation for annual holding costs
Using this formula
Annual holding costs=Economic order quantity/2*Annual holding cost
Let plug in the formula
Annual holding costs=319/2*23
Annual holding costs= 3,669
c) Calculation for the annual ordering costs
Using this formula
Annual ordering costs=Demand/Economic order quantity*Cost order
Let plug in the formula
Annual ordering costs=15,400/319*76
Annual ordering costs= 3,669
d) Calculation for reorder point
Using this formula
Reorder point=Demand/Numbers of days the company operate per year*Lead time
Let plug in the formula
Reorder point=15,400/300 days per year*3
Reorder point= 154
What budgeting style is used by Ford Motor company?
Answer:
Marketing
Explanation:
If, at a good's current price, the quantity demanded is 2,000 units and the quantity
supplied is 1,000 units then:
A) the current price is below the equilibrium price.
B) producers are not responsive to price changes.
C) the current price is above the equilibrium price.
Answer:
C.
Explanation:
Because there is more demand with this good, the current price projects how the sellers are reacting to the market. If there is a shortage of goods being supplied to a market then this means that the sellers price is too high because more people (who arent willing to pay for it for so much) are wanting the product.
A factory worker really wants to move up in the corporation. He does his work, stays late, and is always looking for extra ways to help. He gets denied a promotion after promotion. This will most likely affect his ________.a. equityb. valencec. expectancyd. instrumentality
Answer:
equity
Explanation:
A perfectly competitive firm shuts down in the short run when:________. A. economic losses occur. B. the price is below the average total cost curve. C. the price is below the average variable cost curve. D. the price is below the average fixed cost curve.
Answer:
C. the price is below the average variable cost curve.
Explanation:
In a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.
Hence, a perfectly competitive market is characterized by the following features;
1. Perfect information.
2. No barriers, it is typically free.
3. Equilibrium price and quantity.
4. Many buyers and sellers.
5. Homogeneous products.
Some examples of a perfectly competitive market are the Agricultural sector, e-commerce and the foreign exchange market.
A perfectly competitive firm shuts down in the short run when the price it is selling its goods (products) in the market is below the average variable cost curve.
This ultimately implies that, a business firm should only continue to be in operation when its price is above or greater than its average variable costs based on the shutdown rule.
________ is the process of training and educating employees to become good managers and then developing their managerial skills over time.A) Management development
B) Vestibule training
C) Pre-mentoring
D) Self-actualization training
Answer:
A) Management development
Explanation:
Management development is the process of training and educating employees to become good managers and then developing their managerial skills over time.
Personnel management can be defined as an administrative task or function which primarily involves the process of hiring employees and developing or training them to become beneficial and valuable for the growth and development of the company.
Hence, the main purpose and focus of personnel management is to provide a quality workforce necessary to successfully achieve the organizational set goals and objectives.
This ultimately implies that, the main purpose of a training focuses is to improve an employee's performance in his or her place of work while development is focused on preparing an employee for higher positions available in an organization.
A company’s marketing executives should assess the __________ in terms of a general analysis of a business problem or opportunity the company is facing.a. business situationb. 5Cs
c. STP
d. ARA
Answer:
a is your answer
Explanation:
The following is a list of prices for zero-coupon bonds of various maturities. a. Calculate the yield to maturity for a bond with a maturity of (i) one year; (ii) two years; (iii) three years; (iv) four years. (Do not round intermediate calculations. Round your answers to two decimal places.) YTM Maturity (Years) Price of Bond 920.90 $ 912.97 $ 826.62 $ 785.62 b. Calculate the forward rate for (i) the second year; (ii) the third year; (iii) the fourth year. (Do not round intermediate calculations. Round your answers to two decimal places.) Maturity (years) Price of Bond $ 920.90 912.97 826.62 785.62 Forward Rate Maturity (Years) Price of Bond $ 912.97 $ 826.62 $ 785.62
Answer:
a. Calculation of the yield to maturity for a bond with a maturity years
Yield to Maturity = [(Face value/Bond price)^(1/Time period)] - 1
i. One year = (1000/920.90) - 1 = 0.0858942339 = 8.59%
ii. Two year = (1000/912.97)^(1/2) - 1 = 0.04657835011 = 4.66%
iii. Three year = (1000/826.62)^(1/3) - 1 = 0.06552758403 = 6.55%
iv. Four year = (1000/785.62)^(1/4) - 1 = 0.06217693669 = 6.22%
b. Calculation of the forward rate
Forward rate = [(1 + Next year YTM)^Period / (1+Previous year YTM)^Period} - 1
i. Second year = (1+4.66%)^2/(1+8.59%) - 1 = 0.00872231328 = 0.87%
ii. Third year = (1+6.55%)^2/(1+4.66%) - 1 = 0.08474130517 = 8.47%
iii. Fourth year = (1+6.22%)^2/(1+6.55%) - 1 = 0.05891022055 = 5.89%
When an increasing trend exists in the data and a single exponential smoothing forecast method is used, the forecast will:_______.
a) predict demand perfectly
b) generally underestimate demand
c) capture the trend
d) increase the trend
e) none of the above
Answer:
c) capture the trend
Explanation:
The exponential smoothing is a forecasting method that is used for a time series and the data i.e. univariate. It could be extended for data support that have the chronological trend
Here in the given situation, if the trend i.e. increased in the data and the above method is used so in the case when the value of the alpha is more it would capture the trend but in the case when the value of the alpha is less so it also capture the demand but the demand is underestimated
Hence, the option c is correct
The exponential smoothing method is a time series forecasting method of the univariate data that is extended to support systematic trends and seasonal components.
his method is used when some trends may be present, weight-based on experimental and intuition and orderly data is less important. The single parameter controls the rate at which the pbservatiosna are influenced. While the double method is an extension of smoothing that adds support for trends in time series.Hence the option D is correct.
Learn more about the increasing trend that exists in the data and a single exponential smoothing.
brainly.com/question/20376850
What's the future value of $55,000 after 20 years if the appropriate interest rate is 3%, compounded semiannually?
Answer:
$99,771
Explanation:
future value = present value x (1 + interest rate)ⁿ
present value = $55,000interest rate = 3% / 2 = 1.5% semiannualn = 20 years x 2 = 40 semiannual periodsfuture value = $55,000 x (1 + 1.5%)⁴⁰ = $55,000 x 1.81402 = $99,771
When interest is compounded semiannually, the effective interest rate is slightly higher than when it is compounded annually.
effective interest rate = (1 + 3%/2)² - 1 = 3.0225%
Jane bought a $3,000 audio system and agreed to pay for the purchase in 10 equal annual installments beginning one year from today. The interest rate is 12%. What is the amount of the annual installment?
Answer:
Jane
The amount of the annual installment is:
$530.98
Explanation:
Present value of audio system = $3,000
Interest rate (r) = 12%
Number of years for installments (n) = 10 years
The future value = PV * (1 + r)∧n
= $3,000 * (1 + 0.12)∧10
= Future value of the audio system
= $9,318 ($3,000 * 3.106)
Jane will need to contribute $530.98 at the end of each period to reach the future value of $9,318.00.
From online financial calculator:
FV (Future Value) $9,318.00
PV (Present Value) $3,000.15
N (Number of Periods) 10.000
I/Y (Interest Rate) 12.000%
PMT (Periodic Payment) $530.98
Starting Investment $0.00
Total Principal $5,309.78
Total Interest $4,008.22
During the year, Hamlet Inc. paid $24,000 to have bond certificates printed and engraved, paid $90,000 in legal fees, paid $15,000 to a CPA for registration information, and paid $230,000 to an underwriter as a commission. What is the amount of bond issue costs?A. $360,000.
B. $26,000.
C. $401,000.
D. $186,000.
Answer:
$359,000
Explanation:
Total Bond issue costs can be calculated by adding all the cost related to the issue of bond.
Bond Certificate printing cost = $24,000
Legal fees paid = $90,000
CPA registration = $15,000
Underwriting Commission = $230,000
Total Bond issue costs = $359,000
After adding all the cost we reached at 359,000 and its closest to Option A 360,000
You get a $3,000 loan at 9% interest for 120 days. The lender uses a 365-day year. How
much will you owe on the maturity date?
Answer:
$3,088.80
Explanation:
Note that the loan is meant for 120days , however, the interest rate quoted is on an annual basis, hence, the interest for 120 days is 2.96% ( 9%*120/365).
It is equally important to note that at maturity the loan principal and the interest accrued thus far for 120 days are repayable to the lender as computed below:
total repayment=$3000+($3000*2.96% )
total repayment=$3000+$88.80
total repayment=$3,088.80
A proposed new project has projected sales of $222,000, costs of $96,500, and depreciation of $26,100. The tax rate is 24 percent. Calculate operating cash flow using the four different approaches. (Do not round intermediate calculations.)A. EBIT+Depreciation-TaxesB. Top-DownC. Tax-ShieldD. Bottom-Up
Answer: See explanation
Explanation:
Sales = $222,000
Less: Cost = $96,500
Less: Depreciation = $26100
EBIT = $99400
Less: Tax = 24% × $99400 = $23856
Net income = $75544
A. EBIT+Depreciation-Taxes
EBIT = $99400
Add: Depreciation = $26100
Less: Tax = $23856
Operating cashflow = $101644
B. Top-Down
= EBIT(1 - t) + Depreciation
= $99400(1 - 0.24) + $26100
= $75544 + $26100
= $101644
C. Tax-Shield
= (Sales - Cost)(1-t) + Depreciation (t)
= ($222000 - $96500)(1 - 0.24) + $26100(0.24)
= ($125500 × 0.76) + $6264
= $95380 + $6264
= $101644
D. Bottom-Up
= Net income + Depreciation
= $75544 + $26100
= $101644
A company had net sales of $760,200 and cost of goods sold of $547,400. Its net income was $19,340. The company's gross margin ratio equals:______.a. 18.2%.b. 25.4%.c. 28.0%.d. 35.3%.e. 38.9%.2. The monetary unit assumption means that all companies doing business in the United States must express transactions and events in US dollars.A. TrueB. False3. Paid-in capital is the total amount of cash and other assets the corporation receives from its stockholders in exchange for its stock.A. TrueB. False'
Answer:
1. A company had net sales of $760,200 and cost of goods sold of $547,400. Its net income was $19,340. The company's gross margin ratio equals:______
c. 28.0%.
2. The monetary unit assumption means that all companies doing business in the United States must express transactions and events in US dollars.
A. True
3. Paid-in capital is the total amount of cash and other assets the corporation receives from its stockholders in exchange for its stock.
A. True
Explanation:
Gross profit margin is calculated by dividing the gross profit by the sales and multiplying by 100. In this case, the gross profit is $212,800 ($760,200 - $547,400). The amount, $212,800, then divided by $760,200 and multiplied by 100 to obtain approximately 28%.
The dollar is the monetary unit for all business transactions conducted in the United States. The accounting assumption behind the monetary unit means that all transactions conducted in the United STates are reported in dollars.
If Roten Rooters, Inc., has an equity multiplier of 1.63, total asset turnover of 2.50, and a profit margin of 4.3 percent, what is its ROE? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.).
ROE _________ ?? %
Answer: 17.52%
Explanation:
Equity Multiplier = 1.63
Total asset turnover = 2.50
Profit margin = 4.3%
Rate of Return = Equity Multiplier × Asset turnover × Profit margin
= 1.63 × 2.50 × 4.3%
= 1.63 × 2.50 × 0.043
= 0.175225
= 17.52% approximately