The following information pertains to Trenton Glass Works for the year just ended.
Budgeted direct-labor cost: 70,000 hours (practical capacity) at $16 per hour
Actual direct-labor cost: 80,000 hours at $17.50 per hour
Budgeted manufacturing overhead: $997,500
Actual selling and administrative expenses: 439,000
Actual manufacturing overhead:
Depreciation $ 233,000
Property taxes 23,000
Indirect labor 80,000
Supervisory salaries 202,000
Utilities 58,000
Insurance 32,000
Rental of space 301,000
Indirect material (see data below) 79,000
Indirect material:
Beginning inventory, January 1 48,000
Purchases during the year 95,000
Ending inventory, December 31 64,000
Calculate the overapplied or underapplied overhead for the year. (Round your intermediate calculations to 2 decimal places.)

Answers

Answer 1

Answer:

Over-applied Overhead  $134,000

Explanation:

The computation of the overhead applied or under applied overhead is given below:

Depreciation $233,000  

Property tax $21,000  

indirect labor $80,000  

Supervisory salaries $202,000  

utilities    $58,000  

Insurance  $32,000  

Rental of space $301,000  

Indirect material $79,000  

Total OH incurred   $1,006,000  

OH applied       $1,140,000  

(80000 hours at 14.25 per hour) ($997,500 ÷ 70,000)  

Over-applied Overhead  $134,000


Related Questions

The beta of a stock is 1.2. The risk free rate is 3%. The expected market return is 9%. The dividends of the company are expected to grow by 5.6% a year. The current dividend is $6.80. Using the Gordon growth model, what is the intrinsic value of the firm

Answers

Answer: $156.09

Explanation:

First find the required return of the stock using CAPM:

= Risk free rate + Beta *( Market return - Risk free rate)

= 3% + 1.2 * (9% - 3%)

= 10.2%

Find out the Next dividend to be paid:

= Current dividend * (1 + growth)

= 6.8 * (1 + 5.6%)

= $7.18

Gordon Growth Model:

= Next dividend / (Return on stock - growth rate)

= 7.18 / (10.2% - 5.6%)

= $156.09

Which strategies is suggested to help build strong interpersonal business relationships?

Answers

Answer and Explanation:

Gain trust: Business relationship is sealed with trust. If you are able to make a business partner trust you, you are sure to keep doing business with them. Do not try to take advantage of them and be sure they ate not thinking in that direction.

Show interest in people: keeping up with people and always showing that you actually care, and want to assist in any way you can is a sure way to seal a client for life. Be family.

Work hard: you can not build business relationships if you are not a person that delivers. It doesn't matter if you are a nice person that always cares, if you cannot bring results and be trusted to deliver you cannot have any useful business relationship. This is the most important strategy.

Networking: networking is a popular form of building business relationships. Formal occasions, conferences, informal hangout spots, the gym are all places where you can meet new people and start a business relationship.

define economic development​

Answers

Answer:

developing the economy

We should always show the mean, mode and median when reporting analysis graphics.
Select one:
O True
O False

Answers

Answer:

answer: true

Explanation:

hope it helps thanks

i believe it’s true i might not be right

In 20X4, Bosh Corporation had income of $60,000 using absorption costing. Beginning and ending inventories were 13,000 and 8,000 units, respectively. The fixed manufacturing overhead cost was $4.00 per unit. What was the net income using direct/variable costing

Answers

Answer:

Net income under variable costing $80,000

Explanation:

The computation of the net income using direct/variable costing is shown below:

Net income under absorption costing $60,000

Add fixed cost under applied $20,000

Net income under variable costing $80,000

Working

Beginning inventory 13000

Less ending inventory -8000

Decrease in inventory 5000

Now under applied inventory $20,000

1.8 Advise businesses on FIVE ways in which professional, responsible, ethical and
effective business practice should be conducted.

Answers

Answer:

Explanation:

There are various ways in which professional, responsible, ethical and

effective business practice should be conducted. Five of them are:

1. Payment of fair wages and salaries to employees

2. Equal treatment among workers

3. Accountability and responsibility on business decisions made from top to bottom or managers to workers

4. Provision of quality goods and services to the masses

5. Transparency, including adequate internal controls, monitoring, and evaluation.

When using process costing, nonmanufacturing costs are ______.
a) included as part of the cost of the product
b) expensed during the period
c) incurred ignored treated as part of conversion costs

Answers

Answer:

b) expensed during the period

Explanation:

Process costing can be defined as a cost accounting method used for assigning manufacturing or production costs to the units of goods produced by a business firm over a specific period of time. It is mostly used by firms that produce a large quantity of homogeneous or similar products on a continuous basis.

Typically, process costing uses more than one Work in Process Inventory account because costing is done at each stage of the production or manufacturing process.

Generally Accepted Accounting Principles (GAAP) can be defined as the set of commonly used accounting standards in the U.S.

This ultimately implies that, the United States of America, Generally Accepted Accounting Principles (GAAP) is the accounting principles, procedures and standard issued by the Financial Accounting Standards Board (FASB) and adopted by the United States of America, Securities and Exchange Commission (SEC).

Under U.S Generally Accepted Accounting Principles (GAAP), when using process costing, non-manufacturing (administrative and selling) costs are expensed on the income statement of the company during the accounting period they were incurred.

Answer:

b) expensed during the period

Explanation:

When using process costing, nonmanufacturing costs are expensed during the period.

A manager of a perfectly competitive firm observes that the marginal product of labor is 5 units per hour, the marginal product of capital is 40 units per machine, the wage is $20 per hour, the rental price of capital is $120 per machine, and the price of output is $5 per unit. Please complete the following statement.

To maximize profit, the manager should hire _________and __________

Answers

Answer:

The manager should hire more labor and rent less capital.

Explanation:

Given:

MPL = Marginal product of labor units per hour = 5

MPC = marginal product of capital units per machine = 40

PL = Wage per hour = $20, or 20

PC = Rental price of capital per machine = $120, or120

Po = Price of output per unit = $5

The condition for the profit maximization for a firm is as follows:

MPL / PL = MPC / PC ……………………………. (1)

From equation (1), we have:

MPL / PL = 5 / 20 = 0.25

MPC / PC = 40 / 120 = 0.33

Since 0.25 = MPL / PL < MPC / PC = 0.33, it implies that these conditions are NOT consistent with equation (1).

In order to maximize profit, more labor should be hired while less capital should be rented until these conditions are consistent with equation (1).

Therefore, we have:

To maximize profit, the manager should hire more labor and rent less capital.

s).  Marty has been offered an injury settlement of ​$15 comma 000 payable in 5 years. He wants to know what the present value of the injury settlement is if his opportunity cost is 3.5 ​%. ​ (The opportunity cost is the interest rate in this​ problem.) What if the opportunity cost is 7.5 ​%? What if it is 11.5 ​%?

Answers

Answer and Explanation:

The computation of the present value in each situation is as follows:

As we know that

Present value = Future value ÷ (1 + rate of interest)^time period

When the rate is 3.5%, the present value is

= $15,000 ÷ (1 + 3.5%)^5

= $12,630

When the rate is 7.5%, the present value is

= $15,000 ÷ (1 + 7.5%)^5

= $10,448.38

And, When the rate is 11.5%, the present value is

= $15,000 ÷ (1 + 11.5%)^5

= $8,703.96

Midyear on July 31st, the Digby Corporation's balance sheet reported: Total Liabilities of $102.335 million Cash of $8.040 million Total Assets of $165.097 million Retained Earnings of $35.132 million. What was the Digby Corporation's common stock

Answers

Answer:

$27.63 million

Explanation:

Total equity = Common stock + Retained earnings

Common stock = Total equity - Retained earnings

Common stock = (Total assets - Total liabilities) - Retained earnings

Common stock = ($165.097 million - $102.335 million) - $35.132 million

Common stock = $62.762 million - $35.132 million

Common stock = $27.63 million

Sunland Company reported a net profit of $8.15 per share and a dividend of $3.50 per share. If you buy shares of the stock at $94.85 per share, what is your dividend yield

Answers

Answer:

The answer is "[tex]3.69\%[/tex]"

Explanation:

Dividend Share [tex]= \$3.50[/tex]

stock purchasing Price[tex]= 94.85[/tex]

[tex]\text{Dividend yield} = \frac{Dividend}{Purchase price}\\\\[/tex]

[tex]=\frac{3.50}{94.85}\\\\=0.036900369 \approx 3.69\%[/tex]

Sunland Company uses a job order cost system. On May 1, the company has balances in Raw Materials Inventory of $15,700 and Work in Process Inventory of $4,210 and two jobs in process: Job No. 429 $2,420, and Job No. 430 $1,790. During May, the company incurred factory labor of $14,710. During May, a summary of source documents reveals the following.
Job Number Materials Labor Time
Requisition Slips Tickets
429 $3,040 $2,300
430 4,020 3,430
431 4,740 $11,800 7,870 $13,600
General use 900 1,310
$12,700 $14,910
Stine Company applies manufacturing overhead to jobs at an overhead rate of 62% of direct labor cost. Job No. 429 is completed during the month
1. Prepare summary journal entries to record (1) the requisition slips, (2) the time tickets, (3) the assignment of manufacturing overhead to jobs, and (4) the completion of Job No. 429.
2. Post the entries to Work in Process Inventory, and prove the agreement of the control account with the job cost sheets.

Answers

Answer:

Sunland Company

1. Journal Entries:

1) Requisition slips:

Debit Work in Process:

Job 429 $3,040

Job 430 $4,020

Job 431 $4,740

Credit Raw materials $11,800

To record direct materials slips to work in process.

Debit Manufacturing Overhead $900

Credit Raw materials $900

To record indirect materials slip to overhead.

Debit Work in Process:

Job 429 $2,300

Job 430 $3,430

Job 431 $7,870

Credit Direct labor $13,600

To record direct labor tickets to work in process.

Debit Manufacturing Overhead $1,310

Credit Indirect labor $1,310

To record indirect labor tickets to overhead.

Debit Work in Process:

Job 429 $1,426

Job 430 $2,127

Job 431 $4,879

Credit Manufacturing overhead $8,432

To apply 62% of direct labor as overhead to work in process.

Debit Finished Goods $9,186

Credit Work in Process: Job 429 $9,186

To record the completion of Job 429

2. T-accounts:

Work in Process Inventory

Account Titles               Debit  Credit

Beginning balance    $4,210

Raw materials            11,800

Direct labor              13,600

Mfg overhead           8,432

Finished goods                        $9,186

Ending balance                       28,856

Total                     $38,042   $38,042

Explanation:

a) Data and Calculations:

May 1 Inventory Balances:

Raw materials = $15,700

Work in Process = $4,210

Job No. 429 = $2,420

Job No. 430 = $1,790

During May:

Factory labor cost = $14,710

Job Number    Materials        Labor Time

                   Requisition Slips    Tickets

429                   $3,040            $2,300

430                     4,020               3,430

431                      4,740               7,870

Sub-total         $11,800           $13,600

General use         900                1,310

Total              $12,700            $14,910

Job Sheets:               Job 429    Job 430    Job 431         Total

Beginning balance     $2,420      $1,790                         $4,210

Direct materials            3,040       4,020     $4,740         11,800

Labor                            2,300       3,430        7,870        13,600

Overhead (62% DL)     1,426        2,127        4,879          8,432

Total costs                 $9,186    $11,367     $17,489     $38,042

Finished goods        ($9,186)   $11,367     $17,489     $28,856

What is the Production Possibilities Frontier's purpose?

:a. Showing businesses that in order to produce more, they need to hire more output
b. Show businesses that businesses should not produce at their maximum capacity because they could exhaust their workers and capital goods
c. Show businesses that they need to produce at their maximum capacity to be efficient
d. Showing businesses that a worker's high morale is necessary to make them efficient

Answers

Answer:

Uhh b

Explanation:

The beginning inventory was 300 units at a cost of $10 per unit. Goods available for sale during the year were 1,300 units at a total cost of $14,400. In May, 600 units were purchased at a total cost of $6,600. The only other purchase transaction occurred during October. Ending inventory was 550 units.
Required:
a. Calculate the number of units purchased in October and the cost per unit purchased in October
b-1. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using FIFO method
b-2. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using LIFO method

Answers

Answer:

a. The number of units purchased in October = 400

The cost per unit = $12

b-1. Cost of goods sold = $7,950

Ending inventory = $6,450

b-2. Cost of goods sold = $8,650

Ending inventory = $5,750

Explanation:

a) Data and Calculations:

Beginning inventory    300 units  at $10 per unit = $3,000

May purchases            600 units at $11 per unit =     6,600

October purchases     400 units at $12 per unit =    4,800

Goods available        1,300 units                             $14,400

Ending inventory        550 units

Goods sold                 750 units

a. The number of units purchased in October = 400 (1,300 - 300 - 600)

The cost per unit = $12 ($4,800/400)

b-1. Cost of goods sold and ending inventory using FIFO method:

Cost of goods sold:

300 units  at $10 per unit = $3,000

450 units at $11 per unit =     4,950  $7,950

Ending inventory = $6,450 ($14,400 - $7,950)

b-2. Cost of goods sold and ending inventory using LIFO method:

Cost of goods sold:

350 units at $11 per unit =     3,850

400 units at $12 per unit =    4,800

Total Cost of goods sold = $8,650

Ending inventory = $5,750 ($14,400 - $8,650)

Recording the adopted budget Following is a summary of the operating budget adopted by Westchester County, New York for the calendar year 2017. The actual budget document is almost 750 pages, so the summary is highly condensed.
Prepare the journal entry to record the budget, assuming that the detail will be separately recorded. Estimated revenues and other sources:
Real property taxes $ 548,423,468
Sales tax 517,559,000
Federal and state aid 433,229,570
Departmental income 151,405,650
Other revenues 159,394,093
Total estimated revenues 1,810,011,781
Appropriated previously accumulated fund balance 15,000,000
Total estimated revenues and other sources $1,825,011,781
Appropriations: General government and support $ 49,275,122
Home and community services 614,816,681
Health services 149,224,687
Education 29,833,371
Public safety, corrections, courts 223,582,214
Roads, transportation, parks facilities 217,729,956
Miscellaneous and fixed 540,549,750
Total appropriations $1,825,011,781
Prepare the journal entry to record the budget, assuming that the detail will be separately recorded.

Answers

Answer:

Dr Real property taxes $548,423,468

Dr Sales tax $517,559,000

Dr Federal and state aid $433,229,570

Dr Departmental income $151,405,650

Dr Other revenues $159,394,093

Dr Budgetary fund balance $15,000,000

Cr General government and support $49,275,122

Cr Home and community services $614,816,681

Cr Health services $149,224,687

Cr Education $29,833,371

Cr Public safety, corrections, courts $223,582,214

Cr Roads, transportation, parks facilities $217,729,956

Cr Miscellaneous and fixed $540,549,750

Explanation:

Preparation of the journal entry to record the budget

Dr Real property taxes $548,423,468

Dr Sales tax $517,559,000

Dr Federal and state aid $433,229,570

Dr Departmental income $151,405,650

Dr Other revenues $159,394,093

Dr Budgetary fund balance $15,000,000

Cr General government and support $49,275,122

Cr Home and community services $614,816,681

Cr Health services $149,224,687

Cr Education $29,833,371

Cr Public safety, corrections, courts $223,582,214

Cr Roads, transportation, parks facilities $217,729,956

Cr Miscellaneous and fixed $540,549,750

(To record budget)

Telecommuters are not key to a business continuity plan (BCP) because they work from remote locations. Therefore, any disruptions would not affect them. True

Answers

Answer:

This false

Explanation:

A telecommuter is a remote worker that does his or her job from home and when it is time to have communications with their office, they do so through emails, fax, phone or the internet. the BCP is the ability of the organization to continue with its services and production even after a disruption occurred in the business.

A disruption in the business is capable of affecting the telecommuter too. Working remotely does not make their job less important

The ending retained earnings balance of Juan's Mexican Restaurant chain increased by $6.9 million from the beginning of the year. The company declared a dividend of $2.4 million during the year. What was the amount of net income during the year

Answers

Answer:

the amount of net income during the year is $9.3 million

Explanation:

The computation of the net income is shown below:

= Increased in the retained earnings + dividend declared

= $6.9 million + $2.4 million

= $9.3 million

Hence, the amount of net income during the year is $9.3 million

The same should be considered and relevant

Since its formation, Roof Corporation has incurred the following net Section 1231 gains and losses. Year 1$(12,000)Net Section 1231 loss Year 2 10,500 Net Section 1231 gain Year 3 (14,000)Net Section 1231 loss In year 5, Roof sold one asset and recognized a $9,000 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary

Answers

Answer:

a. $0 will be reported as capital gain, while $7,500 will be reported as ordinary gain.

b. $1,000 will be reported as capital gain, while $8,000 will be reported as ordinary gain.

Explanation:

Note: This question is not complete as part 'a' of the requirement is omitted. The complete question with the part 'a' of the requirement is therefore provided before answering the question as follows:

Since its formation, Roof Corporation has incurred the following net Section 1231 gains and losses.

Year 1  $ (12,000)    Net Section 1231 loss

Year 2      10,500      Net Section 1231 gain

Year 3    (14,000)     Net Section 1231 loss

a. In year 4, Roof sold one asset and recognized a $7,500 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?

b. In year 5, Roof sold one asset and recognized a $9,000 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?

Explanation of the answer is now provided as follows:

When section 1231 losses exceed section 1231 profits in the prior five years, the excess loss (unapplied loss) is applied against the current year's section 1231 gain.

The amount that is reported as ordinary income is the amount of the loss that is applied against the current year's section 1231 gain.

Long-term capital gain is the excess of the current year's section 1231 gain over the the recaptured section 1231 loss from the prior five years.

You have to start with the earliest year to apply section 1231 losses from the previous five years to the current year's section 1231 gain.

Therefore, we have:

a. In year 4, Roof sold one asset and recognized a $7,500 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?

As a result of the loss from the previous year that is applied to the extent of $7,500, the whole of the $7,500 net Section 1231 gain will be recorded as ordinary gain.

Therefore, $0 will be reported as capital gain, while $7,500 will be reported as ordinary gain.

b. In year 5, Roof sold one asset and recognized a $9,000 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?

Unapplied losses in previous years can be calculated as follows:

Details                                                       Amount ($)  

Net Section 1231 loss in Year 3                  (14,000)    

Net Section 1231 gain in Year 4                   7,500

Net Section 1231 loss in Year 1                  (12,000)

Net Section 1231 gain in Year 2                 10,500  

Unapplied losses in previous years        (8,000)  

Because there are unapplied losses of $8,000 from previous years, $8,000 will be reported as ordinary gain.

Therefore, the amount to be reported as capital gain can be calculated as follows:

Amount to be reported as capital gain = Gain in Year 5 – Amount to be reported as ordinary gain = $9,000 - $8,000 = $1,000

Therefore, $1,000 will be reported as capital gain, while $8,000 will be reported as ordinary gain.

Yi Min started an engineering firm called Min Engineering. He began operations and completed seven transactions in May, which included his initial investment of $18,000 cash. After those seven transactions, the ledger included the following accounts with normal balances.
Cash $ 37,641
Office Supplies 890
Prepaid Insurance 4,600
Office Equipment 12,900
Accounts Payable 12,900
Y. Min, Capital 18,000
Y. Min, Withdrawals 3,329
Engineering Fees Earned 36,000
Rent Expense 7,540
Prepare a trial balance for this business as of the end of May. (The items in the Trial Balance should be grouped as follows: Assets, Liabilities, Equity, Revenues and Expenses). Complete this task on an excel spreadsheet in proper form

Answers

Answer:

                                  Trial Balance

Items                                     Group             Debit ($)    Credit ($)

Cash                                      Asset               37641

Office Supplies                     Asset               890

Prepaid Insurance                Asset               4600  

Office Equipment                 Asset               12900

Accounts Payable                Liability                                12900

Capital                                   Equity                                  18000

Withdrawals                          Equity              3329  

Engineering Fees earned    Revenue                              36000

Rent Expense                        Expense         7540                      

Total                                                               $66900      $66900

Steve borrowed $750 for a new dresser. He made 9 monthly payments to repay the loan. He paid $45 interest. What is his simple interest rate?

Answers

Answer:

222

Explanation:

Assume that you own a small apartment building close to a major commercial street and a service station. You learn that there has been a major leak of underground storage tanks from the service station, and the gasoline has spread onto and below the surface of your property. Discuss sources of value loss to your property from the contamination.

Answers

Explanation:

A good source of value loss is the amount of money that the property owner would have to spend to get rid of this contamination. One way to go would be to get a good environmental consultant to take a risk assessment on your property and environment. The expense burden should be lighter on you since it is expected that the service station owners take responsibility. This contamination would cause the value of this property to fall.

The cash account for Feldman Company contains the following information for April:

Cash balance, 3/31 $14,685
Cash received during April 55,680
70,365
Cash disbursements during April:
Cheque 7164 $33,500
Cheque 7165 11,250
Cheque 7166 18,750
Cheque 7167 900 64,400
Cash balance, 4/30 $5,965
The bank statement for April contains the following information:

Bank balance, 3/31 $25,285
Add: Deposits during April 55,680
80,965
Less: Cheques paid during April:
Cheque 7162 $8,900
Cheque 7163 1,700
Cheque 7164 33,500
Cheque 7165 11,250 55,350
Bank balance, 4/30 $25,615

Answers

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In 2016, David Hay started his own business, Hays Gardening and Landscapes. David was previously an employer of another business/
a) What was the opportunity costs for David when he started his business?

A. Cost of marketing to attract customers.

B. Loss of earnings from employment

C. Payment of taxes on profits

D. Risk of business failure

ANSWER:

b) Explain why this answer is correct?

Answers

Answer:

B. Loss of earnings from employment

Explanation:

David's opportunity cost in this scenario would be the loss of earnings from employment. This is because is no longer employed, meaning that he no longer makes money from his employment due to him "choosing" to quit and start his own business. Therefore, that is the cost of him choosing another opportunity. The financial costs of marketing, taxes, and risk of business failure are all costs he may or may not incur from the chosen opportunity but are not the same as "opportunity costs" since they are costs that need to be met in order to continue this opportunity and not something that was given up in order to choose this opportunity.

University Car Wash built a deluxe car wash across the street from campus. The new machines cost $234,000 including installation. The company estimates that the equipment will have a residual value of $27,000. University Car Wash also estimates it will use the machine for six years or about 12,000 total hours. Actual use per year was as follows:

Year Hours Used
1 2,800
2 1,900
3 2,000
4 2,000
5 1,800
6 1,500

Required:
a. Prepare a depreciation schedule for six years using the straight-line method.
b. Prepare a depreciation schedule for six years using the double-declining-balance method.
c. Prepare a depreciation schedule for six years using the activity-based method.

Answers

Answer:

University Car Wash

a. Straight-line Method:

Year  Cost            Depreciation   Accumulated     Net  Book

                                  Expense       Depreciation       Balance

1        $234,000         $34,500          $34,500         $199,500

2       $234,000         $34,500          $69,000        $165,000        

3       $234,000         $34,500         $103,500        $130,500

4       $234,000         $34,500         $138,000         $96,000  

5       $234,000         $34,500         $172,500         $61,500        

6       $234,000         $34,500        $207,000        $27,000                  

b. Double-Declining-Balance Method:

Year  Cost            Depreciation   Accumulated     Net  Book

                                  Expense     Depreciation       Balance

1        $234,000        $77,220          $77,200        $156,780

2       $234,000         $51,737         $128,937       $105,043

3       $234,000        $34,664         $163,601         $70,379

4       $234,000        $23,225        $186,826         $47,154

5       $234,000         $15,561        $202,387         $31,583

6      $234,000           $4,593       $206,980        $27,000

c. Activity-Based Method:

Year  Cost            Depreciation   Accumulated     Net  Book

                                  Expense       Depreciation       Balance

1        $234,000        $48,300          $48,300          $185,700

2       $234,000        $32,775           $81,075          $152,925

3       $234,000       $34,500          $115,575           $118,425

4       $234,000       $34,500         $150,075           $83,925

5       $234,000        $31,050          $181,125           $52,875

6      $234,000        $25,825       $206,950          $27,050

Explanation:

a) Data and Calculations:

Cost of new machines = $234,000

Residual value of equipment = $27,000

Depreciable amount = $207,000

Estimated useful life = 6 years

Straight-line depreciation expense per annum = $34,500 ($207,000/6)

Double-declining-balance rate = 33% (100%/6 * 2)

Year  Depreciation  Declining Balance

1          $77,220           $156,780

2         $51,737            $105,043

3        $34,664             $70,379

4        $23,225             $47,154

5         $15,561              $31,583

6          $4,593             $27,000

Estimated useful life in hours = 12,000

Depreciation rate per hour = $17.25 ($207,000/12,000)

Actual usage per year:

Year Hours Used  Usage Charge

1           2,800            $48,300 (2,800 * $17.25)

2          1,900             $32,775 (1,900 * $17.25)

3         2,000             $34,500 (2,000 * $17.25)

4         2,000             $34,500 (2,000 * $17.25)

5         1,800              $31,050 (1,800 * $17.25)

6         1,500              $25,825 (1,500 * $17.25)

An open-end fund has a net asset value of $12.70 per share. It is sold with a front-end load of 8%. What is the offering price? (Round your answer to 2 decimal places.)

Answers

Answer:

$13.80

Explanation:

Calculation to determine the offering price

Using this formula

Offering Price = NAV/1-load

Let plug in the formula

Offering Price = $12.70/1-0.08

Offering Price =$12.70/0.92

Offering Price = $13.80

Therefore the offering price is $13.80

The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 21 percent a year for the next 4 years and then decreasing the growth rate to 5 percent per year. The company just paid its annual dividend in the amount of $2.80 per share. What is the current value of one share of this stock if the required rate of return is 8.30 percent?a. $153.71b. $138.82c. $193.77d. $156.51e. $190.97

Answers

Answer:

a. $153.71

Explanation:

First, calculate the yearly dividend

First-year dividend = $2.80 x ( 1 + 21% ) = $3.388

Second-year dividend = $3.388 x ( 1 + 21% ) = $4.099

Third-year dividend = $4.099 x ( 1 + 21% ) = $4.960

Fourth-year dividend = $4.960 x ( 1 + 21% ) = $6.002

Now calculate hte terminal value of the dividend payment after 4 years

Terminal value = Fourth year dividend x ( 1 + Growth rate after year 4 ) / ( Required rate of return - Growth rate after year 4 ) = $6.002 x ( 1 + 5% ) / ( 8.30% - 5% ) = $190.97

Now use the following fromula to calcula the value of the bond

Value of the bond = ( First-year dividend / ( 1 + Required rate of return )^1 ) + ( Second-year dividend / ( 1 + Required rate of return )^2 ) + ( Third-year dividend / ( 1 + Required rate of return )^3 ) + ( Fourth-year dividend / ( 1 + Required rate of return )^4 ) + ( Terminal Value / ( 1 + Required rate of return )^4 )

Value of the bond = ( $3.388 / ( 1 + 8.3% )^1 ) + ( $4.099 / ( 1 + 8.3% )^2 ) + ( $4.960 / ( 1 + 8.3% )^3 ) + ( $6.002 / ( 1 + 8.3% )^4 ) + ( $190.97 / ( 1 + 8.3% )^4 )

Value of the bond = $3.128 + $3.495 + $3.905 + $4.363 + $138.820

Value of the bond = $153.711

Value of the bond = $153.71

discuss the benefits of considering a reservation in a restaurant.

Answers

Answer:

Another important benefit of making a reservation in the desired restaurant is the better quality of service one will receive. As the restaurant knows at what time and with how many people the customer will arrive, a comfortable table with enough seats and space will be reserved, and the restaurant's staff will be prepared to serve ...

Explanation:

list three steps you will take before granting credit to customers

Answers

Step 1: Ask the Customer to Submit a Credit Application.

Step 2: Check Business Credit Rating.

Step 3: Set Credit Limit and Repayment Terms.

Answer:

1. Credit Application from Your Customer. Your credit application doesn’t need to be complicated, but …

2. Bank and Trade References. Checking bank and trade references is a very common practice, and …

3. Check Business Credit Using Credit Bureaus. There are a number of commercial credit bureaus that …

Explanation:

FILL IN THE BLANK Please add the appropriate word or words to complete the sentences. 1. Price ceilings are governmental price that are set the market equilibrium price. 2. This kind of policy typically creates a(n) because the quantity demanded the quantity supplied. 3. Price floors are governmental price that are imposed the market equilibrium price. 4. This kind of policy usually generates a(n) in the market because the quantity exceeds the quantity . 5. Shortages and surpluses are reflected in inventories. Inventory is the raw material to goods or the stocks of finished goods that are ready to be sold. g

Answers

Answer:

1. Price ceilings are governmental price that are set below the market equilibrium price.

2. This kind of policy typically creates a shortage because the quantity demanded exceeds the quantity supplied.

3. Price floors are governmental price that are imposed above the market equilibrium price.

4. This kind of policy usually generates a surplus in the market because the quantity supplied exceeds the quantity demanded.

5. Shortages and surpluses are reflected in inventories. Inventory is the raw material which is processed to goods or the stocks of finished goods that are ready to be sold.

Explanation:

Price ceilings, as a part of the price control mechanisms, seem to benefit the consumers, while price floors are attempts to support suppliers and producers.  While they roll back the excesses of market forces in determining the prices of goods and services, some unintended consequences, including allocative inefficiencies, usually arise from price ceilings and price floors.  Therefore, they should be applied sparingly.

You are bullish on Telecom stock. The current market price is $62 per share, and you have $6,200 of your own to invest. You borrow an additional $6,200 from your broker at an interest rate of 7.6% per year and invest $12,400 in the stock. a. What will be your rate of return if the price of Telecom stock goes up by 9% during the next year? (Ignore the expected dividend.) (Round your answer to 2 decimal places.)

Answers

Answer:

Telecom Stock

If the price of the Telecom stock goes up by 9% during the next year, your rate of return will be:

= 10.4%

Explanation:

a) Data and Calculations:

Current market price = $62 per share

Investment in stock = $12,400

Margin account =        $6,200

Loan =                         $6,200 ($12,400 - $6,200)

Units of stock bought on margin = 200 ($12,400/$62)

Margin account interest rate = 7.6%

Growth rate of stock price = 9%

Expected market price of the stock = $67.58 ($62 * 1.09)

Expected value of stock = $13,516 (200 * $67.58)

Interest on loan =                  $471.20 ($6,200 * 7.6%)

Principal & loan amount  $12,400

Return on the stock =          $644.80

Rate of return = 10.4% ($644.80/$6,200 * 100)

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