Answer: a. exceed what it would have been had the effective-interest method of amortization been used.
Explanation:
If the effective - interest method of amortization is used, the interest expense in earlier years will be lower because the amortised amount used in the calculation of bond interest will be lower.
In contrast, straight-line apportions the amortised amount evenly across all the years so in earlier years the interest will be higher than using the effective-interest method.
Sheffield Corp. had revenues of $344000, expenses of $184000, and dividends of $45000. When Income Summary is closed to Retained Earnings, the amount of the debit or credit to Retained Earnings is a
Answer: CREDIT of $160,000.
Explanation:
Income summary being closed to the Retained earnings account means that the income for the year is sent to the Retained earnings account.
Inventory is paid from the Retained earnings so will not feature in the amount sent from the Income statement.
Income = Revenues - expenses
= 344,000 - 184,000
= $160,000
As the Retained earnings will increase, this is a CREDIT of $160,000.
The F. Mercury, Capital account has a credit balance of $43,000 before closing entries are made. Total revenues for the period are $61,200, total expenses are $42,800, and withdrawals are $11,400.
Required:
What is the correct closing entry for the revenue accounts?
Answer:
Dr Revenue accounts $61,200
Cr Income Summary $61,200
Explanation:
Based on the information given we were told that the Total revenues for the period was the amount of $61,200 which means that the correct closing Journal entry for the revenue accounts will be to Debit Revenue accounts with the amount of $61,200 and to credit Income Summary with the same amount of $61,200.
Dr Revenue accounts $61,200
Cr Income Summary $61,200
net working capital for 2016 is $1,890 and Net Working Capital for 2017 is $3,597. What is the change in Net Working Capital
Answer:
$1,707 Increase
Explanation:
The change in Net Working Capital is $1,707 ($3,597 - $1,890). This is a positive change. A positive change is a cash inflow in the cash flow statement.
You plan to purchase a $330,000 house using either a 30-year mortgage obtained from your local savings bank with a rate of 8.00 percent, or a 20-year mortgage with a rate of 7.00 percent. You will make a down payment of 20 percent of the purchase price. a. Calculate the amount of interest and, separately, principal paid on each mortgage. What is the difference in interest paid
Answer:
30 year mortgage
down payment = $330,000 x 20% = $66,000
debt = $330,000 - $66,000 = $264,000
monthly payment = $264,000 / 136.2834 (PV annuity factor, 360 periods, 0.667%) = $1,937.14
total payments = $1,937.14 x 360 = $697,370.40
total interest paid = $697,370.40 - $264,000 = $433,370.40
20 year mortgage
down payment = $330,000 x 20% = $66,000
debt = $330,000 - $66,000 = $264,000
monthly payment = $264,000 / 128.9825 (PV annuity factor, 240 periods, 0.583%) = $2,046.79
total payments = $2,046.79 x 240 = $491,229.60
total interest paid = $491,229.60 - $264,000 = $227,229.60
the 20 year mortgage charges $433,370.40 - $227,229.60 = $206,140.80 less interest
oriole corporation has two products in its ending inventory, each accounted for at the lower of cost or market. a profit margin of 30% on selling price is considered normal for each product. specific data with respect to each product follows:In pricing its ending inventory using the lower-of-cost-or-market, what unit values, rounded to the nearest dollar, should Oriole use for products
Answer:
Product 1 = $20Product 2 = $32.50Explanation:
Using the lower-of-cost-or market means that the market value or the historical cost is used to record the inventory depending on which is lower.
Product 1Market Value = Net realizable value - Profit margin
= (Estimated selling price - Estimated cost to dispose) - ( Estimated selling price * Profit margin)
= (40 - 5) - (40 * 30%)
= 35 - 12
= $23
Historical cost = $20
Lower value is Historical cost so $20 would be used by Oriole
Product 2= (Estimated selling price - Estimated cost to dispose) - ( Estimated selling price * Profit margin)
= (65 - 13) - (65 * 30%)
= 52 - 19.5
= $32.50
Historical Cost = $35
Lower cost is Market value so ending inventory is $32.50
In 2020, Swifty Corporation reported net income of $5.6 billion, net sales of $190 billion, and average total assets of $80 billion. What is Swifty Corporation's asset turnover?
Answer:
Asset turnover = 2.4
Explanation:
The formula for asset turnover is denoted by;
Asset turnover = Net sales / Average total assets
Given that;
Net sales = $190 billion
Average total assets = $80 billion
Then,
Asset turnover = $190 billion / $80 billion
Asset turnover = 2.375
Asset turnover = 2.4 approximated.
osina purchased a 15-year bond at par value when it was initially issued. The bond has a coupon rate of 7 percent and matures 13 years from now. If the current market rate for this type and quality of bond is 7.5 percent, then Rosina should expect:
Answer:
the current market price of the bond is:
PV of face value = $1,000 / (1 + 7.5%)¹³ = $390.56
PV of coupon payments = $70 x 8.12584 (PV annuity factor, 7.5%, 13 periods) = $568.81
market value = $959.37
Since the coupon rate is lower than the market rate, the bond will sell at a discount. Therefore, Osina should expect to lose money if she decides to sell her bond, it would classify as a long term capital loss.
Hanson Inc. has the following direct materials standard to manufacture one Zippy: 1.5 pounds per Zippy at $4.00 per pound Last week, 1,700 pounds of materials were purchased and used to make 1,000 Zippies. The materials cost a total of $6,630. 1. How many pounds of materials should Hanson have used to make 1,000 Zippies? a. 1,700 pounds b. 1,500 pounds c. 1,200 pounds d. 1,000 pounds
Answer:
Total standard quantity= 1,500 pounds
Explanation:
Giving the following information:
Standard= 1.5 pounds per Zippy at $4.00 per pound
Units produced= 1,000 units
To calculate the number of pounds required to make 1,000 units, we need to use the following formula:
Total standard quantity= standard unitary quantity*number of units
Total standard quantity= 1.5*1,000
Total standard quantity= 1,500 pounds
3D printers can use ________ electricity to produce a part than would have been used to produce the same part by nonadditive manufacturing.
Answer:
100 times more
Explanation:
3D printing can simply be define as a way of/for producing a three dimensional digital model, mostly and usually by laying down many successive thin layers of a material. 3D printing is the commonly known for the correct manufacturing term of additive manufacturing.
Electricity is known to be a type/form of energy determine/cause by the movement of electrons.
plans to issue $300,000 of 10-year bonds paying a 5% interest rate, with interest payable annually. The discount rate for such securities is 4%. How much can the company expect to receive from the sale of the bonds?
Answer:
$324,333
Explanation:
the market price per bond:
PV of face value = $1,000 / (1 + 4%)¹⁰ = $675.56
PV of coupon payments = $50 x 8.1109 (PV annuity factor, 4%, 10 periods) = $405.55
market price per bond = $1,081.11
total issuance of the bonds = $1,081.11 x 300 = $324,333
the journal entry to record issuance of bonds:
Dr Cash 324,333
Cr Bonds payable 300,000
Cr Premium on bonds payable 24,333
Assume ABC Corp. pays the dividend of $4.55 this year. For the next 30 years, the firm's dividend will grow by 5.4%, then will grow by 4.7% each year afterwards. The required rate of return for the firm's industry is 10.8%. What is the present value of the firm's stock under the Dividend Discount Model?
Answer:
$86.42
Explanation:
Div₀ = $4.55
using an excel spreadsheet I determined the next 29 dividends:
Div₁ = $4.80
Div₂ = $5.05
Div₃ = $5.33
Div₄ = $5.62
Div₅ = $5.92
Div₆ = $6.24
Div₇ = $6.57
Div₈ = $6.93
Div₉ = $7.30
Div₁₀ = $7.70
Div₁₁ = $8.11
Div₁₂ = $8.55
Div₁₃ = $9.01
Div₁₄ = $9.50
Div₁₅ = $10.01
Div₁₆ = $10.56
Div₁₇ = $11.13
Div₁₈ = $11.73
Div₁₉ = $12.36
Div₂₀ = $13.03
Div₂₁ = $13.73
Div₂₂ = $14.47
Div₂₃ = $15.25
Div₂₄ = $16.08
Div₂₅ = $16.94
Div₂₆ = $17.86
Div₂₇ = $18.82
Div₂₈ = $19.84
Div₂₉ = $20.91
Div₃₀ = $4.55 x (1 + 5.4%)³⁰ = $22.0409
Div₃₁ = $22.0409 x 1.047 = $23.08
first we must determine the terminal value at year 30 = $23.08 / (10.8% - 4.7%) = $378.36
again I used an excel spreadsheet to discount the 30 future dividends using a 10.8% discount rate = $68.97 + $378.36/1.108³⁰ = $86.42
Suppose this information is available for PepsiCo, Inc. for 2020, 2021, and 2022. (in millions) 2020 2021 2022 Beginning inventory $1,700 $2,200 $2,500 Ending inventory 2,200 2,500 2,600 Cost of goods sold 14,235 16,920 16,575 Sales revenue 40,100 45,000 44,920 Calculate the inventory turnover for 2020, 2021, and 2022. (Round inventory turnover to 1 decimal place, e.g. 5.1.) 2020 2021 2022 Inventory turnover enter an inventory turnover times enter an inventory turnover times enter an inventory turnover times LINK TO TEXT Calculate the days in inventory for 2020, 2021, and 2022. (Round days in inventory to 1 decimal place, e.g. 5.1.) 2020 2021 2022 Days in inventory enter a number of days days enter a number of days days enter a number of days days LINK TO TEXT Calculate the gross profit rate for 2020, 2021, and 2022. (Round gross profit rate to 1 decimal place, e.g. 5.1%.) 2020 2021 2022 Gross profit rate enter percentages % enter percentages % enter percentages %
Answer:
a. The inventory turnover are as follows:
Inventory turnover for 2020 = 7.3
Inventory turnover for 2021 = 7.2
Inventory turnover for 2022 = 6.5
b. The days in inventory are as follows:
Days in inventory for 2020 = 50.0
Days in inventory for 2021 = 50.7
Days in inventory for 2020 = 56.2
c. The gross profit rates are as follows
Gross profit rate for 2020 = 64.5%
Gross profit rate for 2021 = 62.4%
Gross profit rate for 2022 = 63.1%
Explanation:
Note: The merged data given in the question are first sorted as follows:
(in millions) 2020 2021 2022
Beginning inventory $1,700 $2,200 $2,500
Ending inventory 2,200 2,500 2,600
Cost of goods sold 14,235 16,920 16,575
Sales revenue 40,100 45,000 44,920
The explanation to the answers is now given as follows:
a. Calculate the inventory turnover for 2020, 2021, and 2022. (Round inventory turnover to 1 decimal place, e.g. 5.1.)
Note: See the attached excel file for the calculation of the inventory turnover for 2020, 2021, and 2022.
In the attached excel file, the following formula is used to calculate the inventory turnover for 2020, 2021, and 2022:
Inventory turnover = Cost of goods sold / ((Beginning inventory + Ending inventory) / 2)
Note that under financial ratio analysis; (Beginning inventory + Ending inventory) / 2 = Average inventory
b. Calculate the days in inventory for 2020, 2021, and 2022. (Round days in inventory to 1 decimal place, e.g. 5.1.)
Note: See the attached excel file for the calculation of days in inventory for 2020, 2021, and 2022.
In the attached excel file, the following formula is used to calculate the days in inventory for 2020, 2021, and 2022:
Days in inventory = 365 / Inventory turnover
c. Calculate the gross profit rate for 2020, 2021, and 2022. (Round gross profit rate to 1 decimal place, e.g. 5.1%.).
Note: See the attached excel file for the calculation of gross profit rate for 2020, 2021, and 2022.
In the attached excel file, the following formula is used to calculate the gross profit rate for 2020, 2021, and 2022:
Gross profit rate = (Sales revenue - Cost of goods sold) / Sales revenue
Note that under financial ratio analysis; Sales revenue - Cost of goods sold = Gross profit
A manufacturer has one hundred memory chips in stock, 4% of which are likely to be defective. A random sample of 20 chips is selected and shipped to a factory that assembles laptops. Let X denote the number of computers that are receive faulty memory chips. Find E(X).
Answer:
E(x) = 0.8
Explanation:
Given:
Selected chips = 20
Defective rate = 4%
Number of fault chips computer = x
Find:
Number of fault chips computer
Computation:
Number of fault chips computer (x) = Selected chips x Defective rate
Number of fault chips computer (x) = 20 x 4%
Number of fault chips computer (x) = 0.8
E(x) = 0.8
During regular economic times in the United States, the maximum length of time a worker can collect unemployment insurance is 26 weeks. During recessions, however, Congress often increases the length of time in which workers can collect benefits. During the recent financial crisis, workers could collect benefits for up to 99 weeks in some states. This system will:
Answer:
the options are missing:
a) encourage people to search longer for a job.
b) provide workers with an adequate safety net.
c) prolong the amount of time a person stays out of work.
d) increase the number of workers looking for work.
e) allow more people to start businesses.
The answer is:
b) provide workers with an adequate safety net. c) prolong the amount of time a person stays out of work.This type of actions can be considered humane and necessary due to certain special circumstances, but it has two effects, one good and one bad:
The good effect is that it provides workers' families with an adequate safety net. I.e. it allows a lot families in need to cover some of their basic necessities which helps them avoid a lot of suffering.
The bad effect is that it encourages people to not search jobs or only accept certain type of jobs (high paying jobs), which increases the amount of time someone is unemployed. If you are in desperate need for a job you will take any job available, but if you can afford to wait, then you will wait until you get a good job.
You are promised $1,000 every year for the rest of your life. If your required return is 2.5%. What is the value of this perpetuity?
Answer:
$40,000
Explanation:
Present value = payment / interest rate = 1000 / 0.025 = $40,000
obtains a $85,000, 6%, six-year loan for a new camp bus on January 1, 2020. If the monthly payment is $1,408.70 by how much will the carrying value decrease when the first payment is made on January 31, 2020
Answer:
the carrying value is $983.70
Explanation:
The computation of the carrying value is shown below:
= Monthly payment - interest
= $1,408.70 - ($85,000 × 6% × 1 month ÷ 12 month)
= $1,408.70 - $425
= $983.70
Hence, the carrying value is $983.70
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Rather than charging a single price to all customers, a firm charges a higher price to men and a lower price to women. This ______.
Answer:
D) is attempting to convert consumer surplus into producer surplus.
Explanation:
These are the options for the question
A) is trying to reduce its costs and therefore increase its profit.
B) is engaging in an illegal activity that is prohibited by the Sherman Antitrust Act.
C) is attempting to convert producer surplus into consumer surplus.
D) is attempting to convert consumer surplus into producer surplus.
E) Both A and C are correct.
From the question, we are told that Rather than charging a single price to all customers, a firm charges a higher price to men and a lower price to women. In this case, By engaging in the above practice, the firm is attempting to convert consumer surplus into producer surplus.
consumer surplus in finance is regarded as the difference in the amount paid by the consumer for a particular goods/service and the price they are willing to pay for the goods/services. producer surplus on the other hand is the difference between price the seller is willing to give out the goods/service and the price they can take for giving the product out at market price. Therefore as the firm charges a higher price to men and a lower price to women, they are trying to convert consumer surplus into producer surplus.
Compute two cash flow ratios. (Round ratios to 2 decimal places, e.g. 0.62.) Current cash debt coverage ratio 0.67 :1 Cash debt coverage ratio 0.38 :1
Answer:
0.66 : 10.25 : 1Explanation:
1. Current Cash Debt Coverage ratio;
[tex]= \frac{Net Cash from operating activities}{\frac{Opeing current liabilities + Closing current liabilities}{2} } \\[/tex]
Net Cash from operating activities = Net Income + Depreciation - Gain on sale of investments - Increase in Accounts receivable
= 33,840 + 11,331 - 3,731 - (43,440 - 23,040)
= $21,040
Current Cash debt coverage
[tex]= \frac{21,040}{\frac{31,840 + 31,840}{2} } \\[/tex]
= 0.66 : 1
2. Cash Debt Coverage ratio;
[tex]= \frac{Net Cash from operating activities}{\frac{Opeing total liabilities + Closing total liabilities}{2} } \\[/tex]
Opening liabilities = 31,840 + 42,840 = $74,680
Closing Liabilities = Accounts payable + Net notes + Bond
= 31,840 + (42,840 - 16,331) + 36,840
= $95,189
Cash debt coverage
[tex]= \frac{21,040}{\frac{ 74,680 + 95,189}{2} } \\[/tex]
= 0.24772
= 0.25 : 1
Costs to rent a vehicle for a short period of time after an auto dealer fails to deliver a purchased vehicle would be
Answer:
Incidental damages.
Explanation:
Incidental damages can be defined as any charges that an individual may charge another for a breach of a contractual arrangement between the two parties or for defaulting in remittance.
In this scenario, costs to rent a vehicle for a short period of time after an auto dealer fails to deliver a purchased vehicle would be incidental damages.
, Inc. retires a $15 million (face value) bond issue when the carrying value of the bonds is $13 million, but the market value of the bonds is $16 million. The entry to record the retirement will include: Select one: a. A gain of $2 million b. A loss of $2 million c. A loss of $4 million d. A gain of $4 million e. A loss of $3 million
Answer:
Loss on bond redemption = $3 million
Explanation:
Given:
Face value = $15 million
Carrying value = $13 million
Cash paid = $16 million
Find:
Profit / loss
Computation:
Loss on bond redemption = Carrying value - Cash paid
Loss on bond redemption = $13 million - $16 million
Loss on bond redemption = $3 million
The entry to record the retirement will include option E. A loss of $3 million. To understand the calculation see below.
Bond RedemptionWe are provided with the information about :
Face value = $15 million
Carrying value = $13 million
Cash paid = $16 million
We need to find profit or loss. The difference between Carrying value and Cash paid is the profit or loss.
Carrying Value - Cash paid
$13 million - $16 million
-$3 million, the answer is negative hence there is loss.
Therefore, the correct option is E. A loss of $3 million.
Learn more about Redemption here:
https://brainly.com/question/7158291
Raymond Co. has $1.4 million of debt, $3 million of preferred stock, and $1.2 million of common equity. What would be its weight on common equity
Answer:
the Weight of common Equity is 0.21
Explanation:
The computation of the weight on common equity is shown below:
But before that first we have to determine the total firm value
= Debt + Preferred stock + common Equity
= $1.4 million + $3 million + $1.2 million
= $5.6 million
Now the weight on common stock is
Weight of common Equity = Common Equity ÷Total Shareholders Fund
= $1.2 million ÷ $5.6 million
= 0.21
hence, the Weight of common Equity is 0.21
The historical returns for the past three years for Stock B and the stock market portfolio are Stock B: 24 percent, 0 percent, 24 percent; market portfolio: 10 percent, 12 percent, 20 percent. Calculate the beta for Stock B.
Answer:
stock B's beta = 0.125
Explanation:
a stock's beta = covariance / variance
covariance = how the stock performs relative to the portfolio
variance = how the stock performs relative to its mean
using an excel spreadsheet, the covariance between stock B and the market portfolio = 0.0016 (=COVARIANCE.P function)
again using excel, the variance of stock B = 0.0128 (=VAR.P function)
stock B's beta = 0.0016 / 0.0128 = 0.125
Have you ever had a crafting table on a first date?
Selected accounts with a credit amount omitted are as follows Work in Process Apr. 1 Balance 7,500 Apr. 30 Goods finished X 30 Direct materials 69,400 30 Direct labor 191,600 30 Factory overhead 57,480 Finished Goods Apr. 1 Balance 15,900 30 Goods finished 306,800 What was the balance of Work in Process as of April 30
Answer:
$19,180
Explanation:
Calculation for the balance of Work in Process as of April 30
Balance of work in process as of April 30 = 7,500+69,400+191,600+57,480-306,800
Balance of work in process as of April 30 = =$19,180
Therefore the balance of Work in Process as of April 30 will be $19,180
a. Computer stocks currently provide an expected rate of return of 12%. MBI, a large computer company, will pay a year-end dividend of $3 per share. If the stock is selling at $50 per share, what must be the market's expectation of the growth rate of MBI dividends? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
6%
Explanation:
Computer stocks currently provide an expected rate of return of 12%
A larger company MBI will pay a year end dividend of $3
The stock is selling at $50 per share
Therefore the market expectation of the growth rate can be calculated as follows
g= 12/100 - $3/$50
g= 0.12 - 0.06
g= 0.06 × 100
g= 6 %
If a good or service is scarce, consumers will usually be?
Answer:
B) willing to pay money to get it.
Multiple-choice options for the question
A) unwilling to buy it.
B) willing to pay money to get it.
C) uninterested in owning it.
D) able to get as much of as they want.
B) willing to pay money to get it.
Explanation:
A good or service is said to be scarce if its demand outweighs the supply. Consequently, not every customer willing to buy the product will find it in the market. Scarcity will lead to a 'scramble' for the products every time buyers locate it. The 'scramble' will make customers who greatly desire the products offer higher prices to the sellers. Scarcity makes prices go up as suppliers take advantage of making higher profits.
Marry will start to save in equal annual installments of $4,000 each year in 4 years (she will make her first savings payment 4 years from today). If she continues to save and earns interest of 4.7% and continues to make $4,000 savings contributions each year, how much will she have saved in 9 years from today after making her final contribution
Answer:
the amount saved is $27,003.07
Explanation:
The computation of the amount saved is shown below:
= Annual Payment × [{(1 + rate)^number of years - 1} ÷ rate]
= $4000 × [{(1 + 0.047)^6 - 1} ÷ 0.047]
= $4000 × [0.3173 ÷ 0.047]
= $4000 × 6.7508
= $27,003.07
hence, the amount saved is $27,003.07
We simply applied the above formula
And, the same is to be considered
A time standard was set as 0.20 hour per unit based on the 100th unit produced. Assume the task has a 70 percent learning curve. Refer to Exhibit 6.4. What would be the expected time of the 200th, 400th, and 800th units
Answer:
200th unit = 0.70028hrs
400th unit = 0.4902hr
800th unit = 0.343hr
Explanation:
Learning rate = 70% = 0.7 (r)
From the learning curve equation
T(n)= T₁(n)^b
b= ln(r)/ln(2)= ln(0.7)/ln(2)= -0.5146
T(100)= T₁(100)^-0.5146
But T(100)=1
1= T₁×(0.0935)
T₁= 1/(0.0935)
T₁= 10.7
For 200th
T(200)= 10.7(200)^-0.5146= 0.70028hr
For 400th
T(400)= 10.7(400)^-0.5146= 0.4902hrs
800th units
T(800)= 10.7(800)^-0.5146= 0.343hrs
A state imposes a minimum wage of $10 per hour when the equilibrium price is $7. The resulting labor surplus is greater in the long run than in the short run: long-run unemployment (LR) is greater than short-run unemployment (SR). Why does this occur
Answer:
With a minimum wage that is higher than the equilibrium price, firms, in the short-run, would still have to hire many workers in order to meet their production obligations and customer demand.
However, because hiring has now become more expensive than it should be, firms will start to invest more in capital, and to look for ways to replace workers with capital investments, for example, machinery.
This will in turn reduce the demand for labor even more in the long-run, leading to a higher labor supply surplus in the long-run than in the short-run.
3) Suppose the household earns 40% of their income by selling a cash crop, spends nothing on inputs, and consumes none of the cash crop. Rest of the 60% of their income received by selling their family labor. If the price of the cash crop rises by 20 percent and wage rate increases by 15%, calculate: a. Net rice sales as fraction of total consumption expenditure
Answer:
8 / 69
Explanation:
Fraction = Net rice sales / Total consumption expenditure
Fraction = 8 / 69
Working
Total Income = 100 ( In which he saves 40 % and spend 60 % which is left )
Net Rice sales = New - Old
Net Rice sales = (40*1120%) - 40
Net Rice sales = 48 - 40
Net rice sales = 8
Total consumption expenditure = New + Old
Total consumption expenditure = (60 x 15%) + 60
Total consumption expenditure = 9 + 60
Total consumption expenditure = 69