Answer: Loan out
Explanation:
Goldsmith is one of the many traditional form of medium of exchange used in the past. Whereby you placed your gold to a goldsmith and in return receive a receipt to use that as a medium of cash exchange.
If goldsmith could loan out excess gold they can make a profit from depositors fund. Because that excess gold gives them an opportunity to loan it out.
Marla always strives to excel in her career. Several years ago, she finished College, finally achieving a Ph.D. Although she works as an educator and has a secure position at an urban college, she does not hold a faculty position at a prestigious university. It is obvious to her colleagues that Marla is unsatisfied with her position at work. She constantly gives coworkers subtle reminders of her superior academic credentials and only participates in work activities where she will assume a leadership role. Analyzing Marla's situation using Maslow's hierarchy of______________
Answer:
esteem needs
Explanation:
Esteem needs -
The term esteem needs , is used for the need of self - confidence and respect , is referred to as esteem needs.
It is a human mentality or behavior , where the human being deserves all respect and values from others .
Hence , the people works for the respect their whole life and therefore , expects to get the respect for the same .
Hence, from the given scenario of the question, the correct term is esteem needs.
In a recent annual report, Fourth Wall Inc. (formerly Greencube) disclosed that 61,600,000 shares of common stock have been authorized. At the beginning of the fiscal year, a total of 35,949,592 shares had been issued and the number of shares in treasury stock was 7,331.269. During the year, 566,765 additional shares were issued, and the number of treasury shares increased by 3,114,188 Determine the number of shares outstanding at the end of the year. (Amounts to be deducted should be indicated by a minus sign.) n of Shares Outstanding Issued shares Treasury stock Shares outstanding
The number of shares outstanding at the end of the year 36,516,357
What is a share?A share is a unit of a company, allocated to an individual. The holders of shares are called shareholders hence are owners of the company.
Number of common stock outstanding at the end:
= Number of common stock the beginning + Number of additional common stock issued
= 35,949,592 + 566,765
= 36,516,357 shares
Hence, the number of shares outstanding at the end of the year 36,516,357
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To calculate the shares outstanding for Fourth Wall Inc. at the end of the fiscal year, we first update the totals for issued shares and treasury stock, then subtract the updated treasury stock from the issued shares, resulting in 33,394,899.731 shares outstanding.
The question presents a scenario involving Fourth Wall Inc., where we must calculate the number of shares outstanding at the end of the fiscal year. Initially, the company had 35,949,592 shares issued and 7,331.269 shares in treasury stock. During the fiscal year, an additional 566,765 shares were issued, and the treasury stock increased by 3,114,188.
To find the outstanding shares at the year's end, we first add the newly issued shares to the initial amount of issued shares (35,949,592 + 566,765) which equals 36,516,357. Then, we update the treasury stock total (7,331.269 + 3,114,188) giving us 3,121,457.269 shares. Finally, to find the shares outstanding, we subtract the treasury stock from the total issued shares (36,516,357 - 3,121,457.269), resulting in 33,394,899.731 shares outstanding at the year's end.
3M’s preferred stock, which pays an annual dividend of $6 per share, was trading for $60 per share yesterday. However, news broke early this morning that some of the materials the company used for one of his most popular home products is a well-known carcinogenic. Consequently, the required rate of return for the stock went up to 12%. What will be the new price of the shares?
Answer:
$50
Explanation:
Given that,
Annual dividend per share = $6
preferred stock trading yesterday at = $60 per share
Required rate of return for the stock went up to = 12%
Cost of preferred stock = (Dividend ÷ share price)
0.12 = (6 ÷ New share price )
New share price = (6 ÷ 0.12)
New share price = $50
Therefore, the new price of the shares will be $50.
Halliford Corporation expects to have earnings this coming year of $3/share. Halliford plans to retain all of its earnings for the next two years. Then, for the subsequent two years, the firm will retain 50% of its earnings. It will retain 20% of its earnings from that point onward. Each year, retianed earnings will be invested in new projects with an expected return of 25% per year. Any earnings that are not retained will be paid out as dividends. Assume Halliford's share count remains constant and all earnings growth comes from the investment of retained earnings. If Halliford's equity cost of capital is 12 percent, what price would you estimate for Halliford stock in years 0,1, and 2?
The stock price for Halliford Corporation during years 0, 1, and 2 would take into account the retained earnings during these years and their investment return. Dividends aren't paid out for these years as the company retains all its earnings. The future dividends are discounted back to their present value using the equity cost of capital.
Explanation:The question requires an estimate of the price of Halliford Corporation’s stock for the first three years considering the company's earnings retention and reinvestment strategy. First, we need to calculate the dividend payments made by the firm. For the first two years, Halliford Corporation retains all its earnings indicating there are no dividends paid during these years. Afterwards, the company retains 50% and 20%, meaning it pays out as dividends 50% and 80% of the earnings respectively.
The stock price at any given time is the present value of all its future dividends. If there are no dividends paid out in the first two years, the price in years 0, 1, and 2 can simply accumulate the retained earnings from those years times their respective investment returns. To get the price, we also need to discount the dividends paid in year 3 and 4 back to their present values using the equity cost of capital.
Please take note, this calculation only takes into account the given information and assumes that the earnings per share remain constant for all the years. The actual stock price might vary due to a plethora of other factors in real-world scenarios, including market demand and supply, overall economic conditions, and investor sentiment.
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Suppose New York wants to build a new facility to replace Madison Square Garden. Assume that the cost of building a new arena in midtown Manhattan is $2 billion and that all the costs occur right away. Also assume that New York will receive annual benefits of $100 million for the next 30 years, after which the new arena becomes worthless. Does it make financial sense to build the new facility if interest rates are 5 percent?
Solution:
Net Present Worth (NPW) ($ Million) = - 2,000 + 100 x PVIFA(5%, 30)
= - 2,000 + 100 x 15.3725**
= - 2,000 + 1,537.25
= - 462.75
Since NPW < 0, the project is financially not viable.
The NPV analysis of the proposed new arena in New York suggests that the present value of the benefits over 30 years at a 5% interest rate is $1.537 billion, which is less than the $2 billion upfront costs. Thus, it does not make financial sense to build the facility.
Financial Viability of Building a New Arena
To determine if it makes financial sense for New York to build a new $2 billion arena with annual benefits of $100 million for 30 years at an interest rate of 5%, we must perform a Net Present Value (NPV) analysis. This involves discounting future cash flows back to their present value to see if they cover the initial investment. First, we find the present value of the annual benefits using the formula for the present value of an annuity:
PV = P × [(1 - (1 + r)^-n) / r]
Where P is the annual payment ($100 million), r is the interest rate (5% or 0.05), and n is the number of periods (30 years). Plugging in the values, we get:
PV = $100 million × [(1 - (1 + 0.05)^-30) / 0.05]
= $100 million × 15.3725
= $1.537 billion
The present value of the benefits over 30 years is $1.537 billion, which is less than the $2 billion upfront cost. Therefore, based on the NPV analysis, it does not make financial sense to build the new facility as the costs outweigh the benefits.
Which of the following is NOT lawful authority and can be a cause of unauthorized commitments? [Identify the causes and consequences of constructive changes and unauthorized commitments.]
a. Apparent Authority
b. Evident Authority
c. Critical Authority
d. Rightful Authority
Answer:
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Critical Authority is not a lawful authority and can lead to unauthorized commitments, potentially resulting in breaches of trust, legal disputes, and financial and reputational damage.
Explanation:In a legal context, unauthorized commitments occur when actions are taken or commitments made by someone who does not have the legal authority to do so. From the given options, the one that does NOT represent lawful authority and could potentially lead to unauthorized commitments is Critical Authority.
The terms 'Apparent Authority', 'Evident Authority', and 'Rightful Authority' are all recognized legal concepts associated with someone's lawfully recognized power to make decisions or commitments. On the other hand, 'Critical Authority' is not a recognized legal term and hence does not represent lawful authority, leading to unauthorized commitments when used.
An unauthorized commitment can lead to serious consequences such as breach of trust, legal disputes, and potential financial and reputational damage for the individual or organization involved.
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Langhurst Company sold hardware for $12,000 cash and $18,000 of hardware to credit customers. Which of the following is the correct journal entry to record this transaction?
Answer:
Cash A/c Dr $12,000
Account receivable A/c Dr $18,000
To Hardware revenues A/c $30,000
(Being the sale of hardware is recorded)
Explanation:
The journal entry is shown below:
Cash A/c Dr $12,000
Account receivable A/c Dr $18,000
To Hardware revenues A/c $30,000
(Being the sale of hardware is recorded)
Since the sale is taken which increase the current asset i.e cash account and the account receivable by $12,000 and $18,000 respectively so we debited it and the revenue is an income so we credited it
On December 31, 2017, Beta Company had 300,000 shares of common stock issued and outstanding. Beta issued a 5% stock dividend on June 30, 2018. On September 30, 2018, 40,000 shares of common stock were reacquired as treasury stock. What is the appropriate number of shares to be used in the basic earnings per share computation for 2018?
Answer:
305,000 Shares
Explanation:
The approriate number of shares to be used in the basic earnings per share computation for 2018 is calculated thus:
As at December 31, 2017 Issued and Outstanding Common Stock = 300,000 sharesDividend paid= 5% Common Stock Meaning As at June 30, 2018, Common Stock issued rose as follows:=(300,000×1.05)= 315,000
However, Treasury Stock Reacquired September 30, 2018 = 40,000 shares of common stockImplication: From January - September 30, Common Stock increased from 300,000 to 315,000. However, From October 1- Decembe 21, Common Stock reduced by 40,000.To Calculate the Shares for EPS: We need to remove the last 3 months (October- December) for which the outstanding common stock has reduced by 40,000 shares. = (300,000 × 1.05) - (40,000 ×3/12)= 315,000-10,000=305,000 (Appropriate number of shares for basic EPS for 2018)Suppose a Lexus LS400 and a Mercedes C300 are considered to be of equivalent value. The Lexus sells for 6,000,000 Japanese yen in Tokyo and the Mercedes sells for 50,000 euros in Stuttgart. Using the purchasing power parity theory, explain the exchange rate between the yen and the euro.
Answer:
1 EUR = 120 JPY
Explanation:
As the purchasing power parity theory, the exchange rate of currency 1 to currency 2 = Cost of good in currency 1 / cost of same valued item in currency 2
In this case, a Lexus LS400 and a Mercedes C300 are considered to be of equivalent value, then the exchange rate between the yen and the euro
= price of Lexus in Tokyo/ price of Mercedes in Stuttgart
= 6,000,000 JPY/ 50,000 EUR
= 120 JPY/EUR
The Mixing Department of Tasty Foods has 50,000 equivalent units of materials and 36,000 equivalent units of conversion costs for October. The Mixing Department of Tasty Foods has direct materials costs of $52,000 and conversion costs of $21,600 for October. Compute the cost per equivalent unit of production for direct materials and for conversion costs. (Round to the nearest cent.) Begin by determining the formula to compute cost per equivalent unit.Cost of completed units/Equivalent units =__________ Cost per equivalent unitThe direct materials cost per equivalent unit =___________ $The conversion cost per equivalent unit =__________ $
Answer:
Direct material cost for each equivalent unit =$1.04
Conversion cost for each equivalent unit = $0.40
Explanation:
Given data:
direct material cost = $52000
units of material = 50000
Equivalent units for october = 36000
conversion cost for october = $21600
direct material cost for each equivalent unit = direct material cost/ equivalent conversion units
direct material cost for each equivalent unit = 52000/50000 = $1.04
conversion cost for each equivalent unit = conversion cost/ equivalent cost
conversion cost for each equivalent unit =21600/36000 = $0.40
To compute the cost per equivalent unit of production for direct materials and conversion costs, use the formula: Cost of completed units / Equivalent units = Cost per equivalent unit. The direct materials cost per equivalent unit is $1.04 and the conversion cost per equivalent unit is $0.60.
Explanation:To compute the cost per equivalent unit of production for direct materials and conversion costs, you can use the following formula:
Cost of completed units / Equivalent units = Cost per equivalent unit
First, determine the cost of completed units. For direct materials, it is $52,000 and for conversion costs, it is $21,600. Next, find the equivalent units. For direct materials, it is 50,000 and for conversion costs, it is 36,000.
Finally, plug in the values into the formula:
Direct materials cost per equivalent unit = $52,000 / 50,000 = $1.04
Conversion cost per equivalent unit = $21,600 / 36,000 = $0.60
In the United States, it is estimated that ____ of all companies allow employees to telework at least one day per week.
Answer:
The correct word for the blank space is: 2,9%.
Explanation:
Teleworking is a type of work agreement in which employees have the freedom of taking their regular duties to a different place from the regular framework. The hours of work are paid as well at a rate established in the agreement. According to the 2017 State of Telecommuting Report, 2,9% of the total United States work from home at a certain point which represents almost 4 million workers under that regime.
1. Which of the terms below is defined as "anything that keeps new firms from entering an industry in which firms are earning economic profits"?
A. economies of scale
B. game theory
C. oligopoly
D. barriers to entry
2. Economies of scale exist when a firm's ___________ average costs fall as it __________ output.
A. short-run; decreases
B. long-run; increases
C. long-run; decreases
D. short-run; increases
3. Which of the following terms is a barrier to entry?
A. patents
B. economies of scale
C. ownership of a key input
D. All of the above.
Answer:
1. D. barriers to entry
2. B. long-run; increases
3. D. All of the above
Explanation:
Anything that keeps new firms from entering an industry in which firms are earning economic profits is known as a barrier to entry.
When an industry have high barriers to entry, it is difficult for new firms to enter into the industry. Therefore, firms in an industry with high barriers to entry would continue to earn economic profit.
A firm earns economic profit where price is greater than average total cost.
An example of an industry with high barriers to entry are monopolies and oligopolies.
Monopolies are industries where there is only one firm operating in the industry.
Oligopolies are industries where there are only few firms operating in the industry.
A monopoly or oligopoly can arise for the following reasons:
1. Economies of scale : in the long run, when total average cost falls as output increases, the firm is said to be experiencing economies of scale. A firm can experience economies of scale because of its large size. The large size of the firm makes the firm enjoy discounts because of bulk buying or they borrow at lower costs because of their large size.
2. Ownership of a key input: A monopoly can arise if the firm owns a key input needed in the production process. Ownership of a key input prevents other firms from entering into the industry as they do not have assess to the input.
3. Patents: Patents are rights given to an inventor to prevent others from using, selling or making their invention for a period of time. When a firm makes an invention and gets a patent, it prevents other firms from entering into the industry and therefore the firm with the patent can function as a monopoly for the duration where the patent is effective.
At the other end of the spectrum is a perfect competition where there are no barriers to entry or exit of firms into the industry. Therefore, there are many sellers in the industry and the firms do not earn economic profit in the long run.
I hope my answer helps you.
The credit union will have $1.8 million available for investment during the coming year. State laws and credit union policies impose the following restrictions on the composition of the loans and investments: • Risk-free securities may not exceed 25% of the total funds available for investment. • Signature loans may not exceed 12% of the funds invested in all loans (automobile, furniture, other secured, and signature loans). • Furniture loans plus other secured loans may not exceed the automobile loans. • Other secured loans plus signature loans may not exceed the funds invested in risk-free securities. How should the $1.8 million be allocated to each of the loan/investment alternatives to maximize total annual return?
Answer:
Thus, the projected total annual return is $169,740.
The answer and procedures of the exercise are attached in the following archives.
Explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
What outcome for hot dogs and hot dog buns is most likely based on the information above?
A) The demand for hot dogs increases, as well as the demand for hot dog buns.
B) The quantity demanded of hot dogs increases, and the demand for hot dog buns increases.
C) The quantity supplied of hot dogs increases, and the quantity supplied of hot dog buns also increases.
D) The supply of hot dogs increases to match the demand. Demand and supply for hot dog buns remains the same.
Answer:
The correct answer is letter "B": The quantity demanded of hot dogs increases, and the demand for hot dog buns increases.
Explanation:
According to the demand theory, as long as the price of a product decreases the quantity demanded increases. The theory explains the relationship between the price and quantity demanded of a good or service within a market. That relationship is said to be inversely proportional.
In that case, if the price of the hot dogs is reduced by half, the quantity demanded is likely to increase. Supplementary goods such as hot dog buns are prone to see an increase in their demand.
Answer: I aswell think it is B.
Explanation: If the quanity increases it means that the demand for hot dogs increases, and you cannot have hot dogs without buns, or else you will be stuck using bread, or nothing.
Assume real per capita GDP in West Swimsuit is $10,000 while in East Quippanova it is $2,500. The annual growth rate in West Swimsuit is 2.33%, while in East Quippanova it is 7%. How many years will it take for East Quippanova to catch up to the real per capita GDP of West Swimsuit? Choose one:
A. about 10 years
B. about 30 years
C. about 40 years
D. about 120 years
E. East Quippanova will never be able to catch up with West Swimsuit
Answer:
correct option is B. about 30 years
Explanation:
given data
real per capita GDP west = $10,000
annual growth rate = 2.33%
real per capita GDP east = $2,500
annual growth rate = 7%
to find out
How many years will it take for East to catch up GDP of West
solution
we know here that future value is equal to real GDP of west after time will be
future value = real per capita GDP west × [tex]rate^{t}[/tex]
future value = 10000 × [tex](1+0.0233)^{t}[/tex] .....1
and
future value = real per capita GDP east × [tex]rate^{t}[/tex]
future value = 2500 × [tex](1+0.07)^{t}[/tex] .....2
compare equation 1 and 2
10000 × [tex](1+0.0233)^{t}[/tex] = 2500 × [tex](1+0.07)^{t}[/tex]
4 [tex](1.0233)^{t}[/tex] = [tex](1.07)^{t}[/tex]
t = about 30 years
so correct option is B. about 30 years
It will take approximately 30 years for the real per capita GDP of East Quippanova to match that of West Swimsuit. The calculation was made using the formula for compound growth and by comprehending annual percentage growth rates for each nation.
Explanation:This problem involves computing compound growth over time, specifically in the matter of real per capita GDP (Gross Domestic Product). It's a common kind of calculation in economics. The formula we use to solve it is based on the law of exponential growth.
East Quippanova’s per capita GDP (E) is growing at a faster rate than that of West Swimsuit (W). So, in terms of the formula, we state that the GDP of East Quippanova will equal West Swimsuit's when E(1+ 0.07)^t = W(1+ 0.0233)^t. By substituting the given GDP per capita values in those formulas, we get 2,500(1+ 0.07)^t = 10,000(1+ 0.0233)^t.
Now, dividing both sides by 2,500, we have (1+ 0.07)^t = 4 (1 + 0.0233)^t. To isolate 't', we can take the natural logarithms of both sides and use the properties of logarithms to derive the final equation: t = ln(4) / (ln(1.07) - ln(1.0233)). Solving this equation we find that t is approximately equal to 30 years. Therefore, it will take roughly 30 years for East Quippanova to match the real per capita GDP of West Swimsuit.
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A company reported that its bonds with a par value of $50,000 and a carrying value of $62,000 are retired for $66,000 cash, resulting in a loss of $4,000. The amount to be reported under cash flows from financing activities is: Multiple Choice $12,000. $(12,000). $(62,000). $(66,000). $(4,000).
Answer:
($66,000)
Explanation:
Financing activities: It measures those transactions which are related to the long term liabilities and stockholder equity. The issuance of shares is an inflow of cash whereas redemption, the retirement of bond and dividend paid is a cash outflow in which the cash balance is reduced.
Since in the given question, the bond is retired for $66,000 cash which represents the cash outflow for $66,000 only as it includes the transaction of cash
For a cost to be considered allocable to a contract, it must be a cost that is incurred specifically for a contract, or a cost that is beneficial to both the contract and other work, or _________________. [Identify the five bases for cost allowability.]
a. A cost that is necessary for the overall operation of the business but not directly related to a contract
b. Any cost incurred by a contractor doing business with the Government
c. Any cost that is exempt from compliance with Government and industry accounting standards
d. Any indirect cost that is not part of the manufacturing overhead cost pool
Answer:
a. A cost that is necessary for the overall operation of the business but not directly related to a contract
Explanation:
Option B - Allocable costs cannot be considered if the contractor is doing business with the government.
Option C - If the cost is exempted, it cannot be specifically allowable for a contract, or a cost that is beneficial to both the contract and other work.
Option D - Indirect costs cannot be allowable.
Option A - It is the right answer because allowable cost should be significant for the operations with an indirect relation with the contract. If it is linked with the overall operations, it can be considered as allowable to a contract.
For a cost to be considered allocable to a contract, it must meet specific criteria, including being necessary for the overall operation of the business but not directly related to a contract. There are five bases for cost allowability in total.
Explanation:In order for a cost to be considered allocable to a contract, it must meet certain criteria. One of these criteria is that it must be a cost that is necessary for the overall operation of the business but not directly related to a contract. This means that the cost is incurred for the general functioning of the business and is not specific to a particular contract.
The other four bases for cost allowability are:
A cost that is incurred specifically for a contract
A cost that is beneficial to both the contract and other work
A cost that is exempt from compliance with Government and industry accounting standards
An indirect cost that is not part of the manufacturing overhead cost pool
3. The marginal cost of admitting an additional fan to watch the Sacramento Kings play basketball is close to zero, but the average price of a ticket to a Kings game is about $60. What do these facts tell you about the market in which the Kings operate?
Answer and Explanation:
That since MC = zero, but Price charged is greater than MC, Therefore the market is characterized by imperfect Competition, because in perfect competition, the price = MC So that the market should have some degree of monopoly power.
The Sacramento Kings operate in a market with low barriers to entry and high competition. The low marginal cost of admitting an additional fan suggests that the Kings can admit more fans without incurring significant additional costs. The average ticket price of $60 indicates that there is still demand for tickets at that price point.
Explanation:The fact that the marginal cost of admitting an additional fan to watch the Sacramento Kings play basketball is close to zero, while the average price of a ticket is about $60, suggests that the Kings operate in a market with low barriers to entry and high competition. When the marginal cost is close to zero, it means that the Kings can admit more fans without incurring significant additional costs. However, the average ticket price of $60 indicates that there is still demand for tickets at that price point, meaning that the market is willing to pay that amount.
The price of Chive Corp. stock will be either $86 or $119 at the end of the year. Call options are available with one year to expiration. T-bills currently yield 5 percent. a. Suppose the current price of the company's stock is $97. What is the value of the call option if the exercise price is $85 per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Suppose the exercise price is $115 and the current price of the company's stock is $97. What is the value of the call option now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Final answer:
The first call option with an exercise price of $85 has a value of approximately $16.67, calculated by discounting the average of the possible end-of-year values. The second call option with an exercise price of $115 has a value of approximately $1.90, based on the discounted expectation of its single profitable outcome.
Explanation:
The value of a call option on a stock can be assessed by considering the possible outcomes at expiration and discounting them back to the present value, given a risk-free interest rate such as the yield on T-bills. Call options provide the holder the right, but not the obligation, to purchase the underlying stock at a specified exercise price before the option expires.
Part A: Call Option with Exercise Price of $85
If the stock price ends up at $86, the call will be worth $1 (86 - 85). If the stock price rises to $119, the call will be worth $34 (119 - 85). We would average the two possible values, weighted by the probability of occurrence. Assuming risk-neutrality, both outcomes are equally likely, so the call option's expected payout is $17.50 (Average of $1 and $34). We then discount this back at the T-bill yield of 5%, which results in a value of $16.67 for the call option.
Part B: Call Option with Exercise Price of $115
If the stock price ends up at $86, the call will be worthless since $86 is less than the exercise price of $115. If the stock rises to $119, the call will be worth $4 (119 - 115).
Again assuming risk-neutrality and equal probability, the expected payout is $2.
Discounting this at 5% gives us a present value of $1.90 for the call option.
Therefore, the value of the call option with a $115 exercise price is $1.90.
A project costs $45,000 today, and will produce a single, one-time after tax cash flow of $330,000 in the future. What is the IRR of this project under each of the following scenarios? a. The future cash flow occurs in 5 years. b. The future cash flow occurs in 10 years. c. The future cash flow occurs in 15 years. d. The future cash flow occurs in 20 year
Answer:
a) 48.95%
b) 22.05%
c) 14.21%
d) 10.48%
Explanation:
Data provided in the question:
Cost of project today i.e present value = $45,000
Future value = $330,000
Now,
IRR = [tex][\frac{\text{Future value}}{\text{initial cost}}]^{\frac{1}{n}[/tex] - 1
Here,
n = Number of years for which cash flow occurs
thus,
a) The future cash flow occurs in 5 years
n = 5
IRR = [tex][\frac{\$330,000}{\$45,000}]^{\frac{1}{5}[/tex] - 1
= 0.4895
or
= 48.95%
b) The future cash flow occurs in 10 years
n = 10
IRR = [tex][\frac{\$330,000}{\$45,000}]^{\frac{1}{10}[/tex] - 1
= 0.2205
or
= 22.05%
c) The future cash flow occurs in 10 years
n = 15
IRR = [tex][\frac{\$330,000}{\$45,000}]^{\frac{1}{15}[/tex] - 1
= 0.1421
or
= 14.21%
d) The future cash flow occurs in 10 years
n = 15
IRR = [tex][\frac{\$330,000}{\$45,000}]^{\frac{1}{20}[/tex] - 1
= 0.1048
or
= 10.48%
Streep Factory provides a 2-year warranty with one of its products which was first sold in 2020. Streep sold $1,000,000 of products subject to the warranty. Streep expects $125,000 of warranty costs over the next 2 years. In that year, Streep spent $70,000 servicing warranty claims. Prepare Streep’s journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assum- ing the expenditures are inventory costs.
Answer:
The Journal entries are as follows:
(i) During 2020,
Cash/ Accounts receivable A/c Dr. $1,000,000
To sales revenue A/c $1,000,000
(To record the product sold)
(ii) Warranty expenses A/c Dr. $70,000
To Inventory A/c $70,000
(To record the Warranty expenses)
(iii) Adjusting entry,
Warranty expenses A/c Dr. $55,000
To Liabilities under warranty A/c $55,000
(To record the December 31 adjusting entry)
Liabilities under warranty = Warranty costs - servicing warranty claims
= $125,000 - $70,000
= $55,000
Streep Factory will record sales of $1,000,000 by debiting Accounts Receivable and crediting Sales Revenue. The expected $125,000 warranty costs are recorded as a debit to Warranty Expense and a credit to Warranty Liability. The $70,000 spent on servicing warranty claims is recognized as a debit to Warranty Liability and a credit to Inventory.
Explanation:To record the sales, Streep Factory will debit Accounts Receivable and credit Sales Revenue by $1,000,000.
Journal entry:
Debit: Accounts Receivable $1,000,000Credit: Sales Revenue $1,000,000To account for the expected warranty costs, Streep will debit Warranty Expense and credit Warranty Liability by $125,000.
Journal entry:
Debit: Warranty Expense $125,000Credit: Warranty Liability $125,000At the end of the year, Streep spent $70,000 servicing warranty claims. This expenditure is recognized by debiting Warranty Liability and crediting Inventory by $70,000.
Journal entry:
Debit: Warranty Liability $70,000Credit: Inventory $70,000https://brainly.com/question/30431480
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Robinson Crusoe was trying to decide if they should continue making coin purses or outsource to a supplier. Their fixed costs to make them in house were $3,750, and the variable costs were $1.35 per unit. One of their suppliers in Mexico made a similar product for $5.75 per unit. Calculate the break-even point. Group of answer choices 594 units 852 units 652 units 2,778 units 15,972 units
Answer:
852 units
Explanation:
The break-even point is number of unit produced whereas the cost of in house produced equal to selling price of similar products
Selling price of similar products = fixed cost per unit + variable cost per unit
$5.75 = $3,750/ number of unit produced + $1.35
number of unit produced = $3,750/($5.75-$1.35) = 852 units
Sloan Transmissions, Inc., has the following estimates for its new gear assembly project: Price = $ 1,440 per unit; variable costs = $ 460 per unit; fixed costs = $ 3.9 million; quantity = 85,000 units. Suppose the company believes all of its estimates are accurate only to within ± 15 percent. What values should the company use for the four variables given here when it performs its Ross, Stephen; Ross, Stephen. Fundamentals of Corporate Finance (Kindle Locations 17643-17645). McGraw-Hill Higher Education. Kindle Edition.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Cannoli Corp. is the parent of its subsidiary, Carac Corp., and the corporations have filed consolidated tax returns since Year 3. In Year 4 Carac sells to Cannoli land worth $90,000 (basis $50,000) at a selling price of $90,000. In Year 6 Cannoli sells the land to an unrelated third party for $120,000, its fair market value at that time. What amount of gain is recognized on Cannoli and Carac’s Year 4 and Year 6 consolidated tax returns, respectively? Year 4 Year 6 a) $0 $30,000 b) $40,000 $30,000 c) $90,000 $30,000 d) $0 $70,000
Answer: A) $0 $30,000
Explanation:
The question states 'amount in gain recognized'
In Year 4, Carac sells to Cannoli land worth $90,000, therefore, in year 3 Carac would report $0
In year 6 Cannoli sells the land to an unrelated third party for $120,000.
Therefore, $120,000 - $90,000 = $30,000 of gain will be reported by Cannoli.
On October 1, 2021, Oberley Corporation loans one of its employees $39,000 and accepts a 12-month, 8% note receivable.Calculate the amount of interest revenue Oberley will recognize in 2021 and 2022.
Answer:
2021 $975
2022 $2925
Explanation:
Assuming that the financial year of the Oberly Corporation is from January to December.
The amount of interest revenue that will be recognised by the Oberly Corporation in its financial statements for the year ended December 31, 2021 will be as follows:
Interest Revenue=Principal amount*interest rate*3/12
Interest Revenue=39000*10%*3/12=$975
Since the Oberly Corporation has extended loan to its employee on October 1,2021, therefore only interest revenue 3 months will be recognised in the year ended December 31, 2021.
The amount of interest revenue for the remaining 9 months will be recognised by the Oberly Corporation in its financial statements for the year ended December 31, 2022 and will be as follows:
Interest Revenue=39000*10%*9/12=$2,925
Why are some people against outsourcing? Why do others support it? Choose a developing nation and a developed nation. What industries or companies may have an interest in outsourcing to these nations? What barriers to trade would prevent an American company outsourcing to one of those countries? Do you think outsourcing would promote or hinder a healthy American economy? Explain.
Answer:
People is against outsourcing because they think this business tactic is based on the idea of avoiding the employer's responsibilities. On the other hand, others believe it is a practice that allows companies to focus resources on the core activities delegating not critical functions to others with higher expertise or efficient execution levels.
Explanation:
Take as an example China and the USA. Technology companies as Apple have interest in outsourcing manufacture functions to these countries because labor cost is cheaper (labor arbitrage). By outsourcing the manufacture functions, Apple has to import to the USA the parts, and a rise in trade barriers that could increase the tariff of Chinese manufacture products could hinder this practice. If we think a world where labor rights are respected everywhere, I think outsourcing could be a good business practice because allow companies to optimize the use of resources, promoting specialization and higher levels of efficiency, increasing the production of goods and therefore, the economic well-being of the population. In that sense, I think outsourcing could promote a healthy American economy
Company X was expected to have earnings per share of the results, the company reported earnings per share of $0.52. What happened to the share price when the stock market opened?
Answer:
There is not enough information given in the question to decide what happened to the share price when the stock market opened.
Explanation:
Using P/E ratio, the ratio which is decided by market price per share/ earning per share, is one of the quick and simple ways to estimate share price.
P/E ratio of a stock is usually expected by an investor by deriving the ratio from similar firm ( similar risk firm, operating in the same industry, having similar growth prospects...). Once investor develop their expectation on P/E ratio, share price is determined by: P/E ratio x EPS.
As there is no information given on P/E ration, there is not enough information given to develop and expectation on what stock price will be given there is only information regarding EPS is available.
To achieve the social optimum, the government could set a tax equal to ________ per unit sold.
To achieve the social optimum, the government could set a tax equal to $6 per unit sold.
Explanation:
The social optimum seems to be the distribution chosen by a good social planner who is limited by resources allocation only. In particular, the social optimum can not be achieved if there are limitations on the social planner's policy tools.
Proponents of significant increases or cuts in the United States marginal tax rates have long provided statistical evidence of the existence of their proposals.
The elasticity of earned income figures was actually a relatively new description of behavioral reactions to marginal taxes that have historically been studied.
The book value of a firm's equity is $100 million and its market value of equity is $200 million. The facevalue of its debt is $50 million and its market value of debt is $60 million. What is the market value of assetsof the firm?A) $150 million B) $250 million C) $160 millionD) $260 million
Answer:
D) $260 million
Explanation:
Using the accounting equation which states that
Assets = shareholder's equity + liabilities
Market value of assets = market value of equity + market value of debt (liabilities)
Market value of equity = $200 million
Market value of debt = $60 million
Market value of assets = $200 million + $60 million
= $260 million
The right option is D) $260 million
Fast Corporation recently borrowed $600,000 from its bank at a simple interest rate of 14 percent. The loan is for 10 months. The loan agreement requires interest to be added to the amount borrowed and the total amount to be repaid in monthly installments. What is the loan's monthly payment?
Answer:
$67,000
Explanation:
For computing the loan monthly payment, first we have to determine the interest payment by using the simple interest formula which is shown below:
= Principal × rate of interest × number of months ÷ (total number of months in a year)
= $600,000 × 14% × (10 months ÷ 12 months)
= $70,000
Now the monthly payment would be
= (Interest payment + principal) ÷ number of months
= ($70,000 + $600,000) ÷ 10 months
= $670,000 ÷ 10 months
= $67,000