On January 1, 2024, Ball Co. exchanged equipment for a $500,000 zero-interest-bearing note due on January 1, 2027. The prevailing rate of interest for a note of this type at January 1, 2024 was 10%. The present value of $1 at 10% for three periods is 0.75. What amount of interest revenue should be included in Ball's 2025 income statement?
a. $37,500.
b. $41,250 .
c. 50,000.
d. $0.
Answer:
b. $41,250
Explanation:
Present value of notes receivable = $500000*0.75
Present value of notes receivable = $375,000
Interest recognized in 2014 = $375,000 * 10%
Interest recognized in 2014 = $37,500
Interest recognized in 2015 = ($375,000 + $37,500) *10%
Interest recognized in 2015 = $412,500 * 10%
Interest recognized in 2015 = $41,250
Cullumber, Inc., stock has a beta of 1.30. If the expected market return is 12.5 percent and the risk-free rate is 9.0 percent, what does CAPM indicate the appropriate expected return for Cullumber stock is
Answer:
25.3%
Explanation:
Cullumber incorporation stock has a beta of 1.30
The expected market return is 12.5
The risk free rate is 9.0
Therefore the expected return for cullumber stock can be calculated as follows
= 9% + (1.3% × 12.5%)
= 9% + 16.25%
= 25.3%
Hence the expected return of cullumber stock is 25.3%
A cost is $34,500 at an activity level of 23,000 units, and $42,000 at an activity level of 28,000 units. What type of cost is this
Answer:
Incremental cost
Explanation:
The incremental cost is the cost that is incurred for increase in the production level that means if the level of the production rises, the cost or an expense also increased. It involves both type of cost i.e. fixed and variable
Therefore in the given situation it is mentioned that
For the activity level of 23,000 units the cost $34,500 is spent
And, for the activity level of 28,000 units the cost $42,000 is spent
So this is an incremental cost
If Lourdes plans to raise additional capital and wants to use debt financing, what coupon rate would it have to set in order to issue new bonds at par
Answer: 2.)Since the bonds are selling at a premium, the coupon rate should be set at the going rate, which is the YTC.
Explanation:
The bond is a callable bond and the callable price is below the market price so the bond is likely to be called. In which case the relevant going rate would be the Yield to Call and so this the rate Lourdes should issue the bonds at in order for it to be at par.
Which function are local governments responsible for meeting?
ОА national security
OB. education
OC. space exploration
OD mail delivery
Answer:
the answer is edication
Answer:
OA. national security
Explanation:
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The recognition that business activities affect society and the consideration of that impact when making business decisions is referred to as a. code of ethics. b. social responsibility. c. business ethics. d. community responsibility. e. corporate ethics.
Answer:
b. Social responsibility
Explanation:
Businesses often consider their impact in the society they operate in terms of carrying out social responsibility. Social responsibility is a way companies contribute meaningfully to their host community by proving for them basic amenities , scholarships for their children and then employing members of the community.
Moreover, companies also take their host community into consideration before making any business decision that would affect them. For instance, a company that emit gas to the air or whose oil spills on the ground must make adequate provision to compensate the host community for this act. Also, any business decision that is against the culture and belief of the host must be ignored by the company in order to avoid legal issues.
A Texas household receives a Social Security check for $1500, which it uses to purchase a $40 pair of shoes made in Thailand by a Thai firm, a $1240 television made by a Korean firm in Korea, and $220 on groceries from a local store. As a result, U.S. GDP a. increases by $280. b. increases by $1500. c. increases by $40. d. increases by $220.
Answer: increases by $220.
Explanation:
The gross domestic product simply means the value in terms of money of the goods that are produced by a particular economy.
Based on the information given in the question, we are told that the household purchase a $40 pair of shoes made in Thailand by a Thai firm, a $1240 television made by a Korean firm in Korea, and $220 on groceries from a local store.
We should note that the GDP will increase by $220 because the groceries were produced in the United States while the other purchase doesn't add to the GDP as they are from other countries.
Jones Company reported pretax book income of $403,000. Included in the computation were favorable temporary differences of $50,300, unfavorable temporary differences of $20,150, and favorable permanent differences of $40,150. Book equivalent of taxable income is:
Answer:
$362850
Explanation:
First of all it is important that we know this:
The book equivalent of taxable income only takes permanent difference into consideration
Favorable income difference are then reduced from pretax but if they are found to be unfavorable they are added to pretax income.
Jones company have their pretax income to be equal to $403000
The favourable permanent difference is given as $40150
The equivalent of taxable income
= 403000 - 40150
= $362850
This is the answer to the question
If the market risk premium increased to 5%, what would happen to the stock's required rate of return
Answer:
a. 1.5
b. Required rate of return would increase by 3% to 12%
Explanation:
a. According to the Capital Asset Pricing Model,
Required return = Risk free rate + beta *market premium
9% = 4.5% + beta * 3%
Beta * 3% = 9% - 4.5%
Beta = (9% - 4.5%)/3%
= 1.5
b.
= 4.5% + 1.5 * 5%
= 12%
The required return would increase by 3%
A company manufactures and sells a single product that sells for $475 per unit; unit variable costs are $280. Annual fixed costs are $550,000. Current sales volume is $1,150,000. Flannigan Company management targets an annual pre-tax income of $850,000. Compute the unit sales to earn the target pre-tax net income.
Answer:
$195 per unit.
Explanation:
• Note. The question is incomplete as the concluding part requested for the calculation of contribution margin per unit.
The formula for contribution margin per unit is denoted as;
Contribution margin per unit = Selling price per unit - Variable cost per unit.
Given that;
Selling price per unit = $475
Variable cost per unit = $280
Contribution margi per unit
= $475 - $280
= $195 per unit
The following items are reported on a company's balance sheet: Cash $258,000 Marketable securities 114,000 Accounts receivable 187,000 Inventory 204,000 Notes payable (short-term) 249,000 Determine the (a) current ratio and (b) quick ratio. Round your answers to one decimal place. a. Current ratio fill in the blank 1 b. Quick ratio fill in the blank 2
Answer and Explanation:
The computation is shown below:
a. Current ratio
= Current assets ÷ Current liabilities
= ($258,000 + $114,000 + $187,000 + $204,000) ÷ ($249,000)
= 31 : 1 times
b. And, the quick ratio is
= Quick assets ÷ Current liabilities
= ($258,000 + $114,000 + $187,000) ÷ ($249,000)
= 22 : 1 times
We simply applied the above formulas and the same is to be considered
Although it is generally the case that service systems have enough capacity, waiting lines result when __________ exceeds capacity for periods of time.
Answer:
Demand
Explanation:
In the case when the service systems contains sufficient capacity so the waiting lines would result the demand in excess of the capacity for the period of time
Therefore in the given case, the demand should be considered as it is relevant
hence, the answer is demand as it meets to the given situation
1. A firm’s production function is F(L) = 36L1/3. Suppose that the cost per unit of labor is $4 and the price of output is $1, how many units of labor will the firm hire
Answer: 144.33
Explanation:
Given data:
Cost per unit of labor = $4.
Output price =$1.
FL = 36L1/3.
Solution:
Units of labor needed by the firm
FL = 36L1/3.
Where
L = 4
Substitute L($4) into the equation.
FL = 36(4)1/3.
= 144.33
The firm would need to hire 144.33 unit of labor.
Meteora, Inc., has an issue of preferred stock outstanding that pays a $3.75 dividend every year, in perpetuity. If this issue currently sells for $81 per share, what is the required return?
Answer:
4.62%
Explanation:
price of a share of preferred stock can be gotten by the ratio of dividend and required return. But some preferred stock do have their dividend fixed with zero growth rate.
Preferred stock=Dividend/required return(R )
Making R subject of the formula
required return(R )= Dividend/Preferred stock
$3.75 dividend/$81 per share
R= 0.0462
R= 4.62%
Hence, the required return is 4.62%
Builtrite currently has a $1000 par, 9 year maturity, zero coupon bond outstanding that is selling for $645. What is the bonds yield to maturity?
Answer:
the bonds yield to maturity is 5%
Explanation:
The computation of the yield to maturity of the bond is shown below:
Given that
Future value = Par value = $1,000
NPER = 9 years
Present value = $645
PMT = $0
The formula is shown below:
= RATE(NPER;PMT;-PV;FV;type)
After applying the above formula, the yield to maturity is 5%
Hence, the bonds yield to maturity is 5%
The same is to be considered
What necessary information is missing from this formula page?
W-work F-force x-distance
Work = force(distance) W = Fx
a.
Formula numbers
c.
Formula origin
b.
Formula title
d.
All of these
Please select the best answer from the choices provided
A
B
C
D
Answer:
B
Explanation:
The formula page contains the basic formula for work, which relates force and distance to work done. However, it is missing some essential information that would make it more useful and informative.
What necessary information is missing from this formula page?Firstly, the formula lacks any identifying title, which would make it easier to understand its context and purpose. A title such as "Work Formula" or "Force-Distance Formula" would help to clarify this.
Secondly, the formula page does not include any formula numbers. Formula numbers are essential in referencing a specific formula, especially when there are several formulas on the same page or in the same document. Adding a formula number to this page would make it easier to find and refer to the formula when needed.
Thirdly, the formula origin is missing. Knowing the origin of a formula can provide context and historical background, helping to understand its development and significance. This information can be included in a small note or citation below the formula.
Therefore, including all of these missing pieces of information would make the formula page more complete and useful to readers.
Based on the given options, the best option is D, i.e., all of these.
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A cost that have inputs that increase or decrease are referred to as __________ costs. Select the correct answer below:
Answer: variable cost
Explanation:
Variable costs are the costs that change as the production level for a particular business changes. Unlike the fixed cost which is fixed, it should be noted that the variable cost changes or varies as it's not constant.
The total cost for a business consist of both the fixed and variable cost. Variable cost is the cost that have inputs that increase or decrease.
Sheffield Corp.is contemplating the production and sale of a new widget. Projected sales are $390000 (or 75000 units) and desired profit is $33000. What is the target cost per unit
Answer:
Unitary cost= $4.76
Explanation:
Giving the following information:
Projected sales are $390,000 (or 75000 units), and the desired profit is $33,000.
First, we need to calculate the total desired cost:
Desired total cost= Sales - desired profit
Desired total cost= 390,000 - 33,000= $357,000
Now, the unitary desired cost:
Unitary cost= total cost / number of units
Unitary cost= 357,000/75,000
Unitary cost= $4.76
Chris invested $50,000 today in a fund that earns 8% compounded semiannually. To what amount will the investment grow in 3 years
Answer:
$63,265.95
Explanation:
The computation of the amount invested growing in 3 years is shown below:
Accumulated Sum = Amount Invested * (1 + Semiannual rate of interest )^Semiannual time Period
= $50,000 * 1.04^6
= $50,000 * 1.265319
= $63,265.95
Hence, the amount invested growing in 3 years is $63,265.95
We simply applied the above formula
Portuguese owns 80 percent of the common stock of Spanish Company. Portuguese also purchases some of Spanish's bonds directly from Spanish and holds the bonds as a long-term investment. How is the acquisition of the bonds treated for consolidated reporting purposes
Answer:
Since Portuguese Company owns 80% of Spanish Company, all inter-company transactions must not be included in the consolidated balance sheet. This means that Portuguese's balance sheet should not include anything related to the purchase of Spanish's bonds.
If Portuguese Company had acquired the bonds from an unrelated third party, then that would be considered a retirement of bonds, but here Portuguese bought the bonds directly from Spanish.
When we ask your most recent manager, how often will they say you perform better than your coworkers?
Answer:
A couple times a week
Explanation: This is one of the usually asked interview questions asked to applicants seeking employment in Organisations especially during the interview process.
A couple times a week will be the most preferred and best answer as it will reflect the actual and real situation for an employee who is committed and dedicated to their Employment.
Thornton Company calculated its return on investment as 10 percent. Sales are now $460,000, and the amount of total operating assets is $480,000. Required If expenses are reduced by $44,400 and sales remain unchanged, what return on investment will result
Answer:
19.25%
Explanation:
The computation of the new return on investment is shown below:
But before that
The net income is
As we know that
Return on investment = Net income ÷ Total assets
10% = Net income ÷ $480,000
So, the net income = $48,000
Now if the expenses reduced by $44,400
That means the net income would increased by
= $48,000 + $44,400
= $92,400
So, the new return on investment is
= $92,400 ÷ $480,000
= 19.25%
Rearden Metal has a bond issue outstanding with ten years to maturity, a yield to maturity of 8.6%, and a B rating. The corresponding risk-free rate is 3% and the market risk premium is 6%. Assuming a normal economy, the expected return on Rearden Metal's debt is closest to:
Answer: 4.6%
Explanation:
The options are:
A. 0.6%
B) 1.6%
C) 4.6%
D) 6.0%
From the question, we are told that Rearden Metal has a bond issue outstanding with ten years to maturity, a yield to maturity of 8.6%, and a B rating and that the corresponding risk-free rate is 3% and the market risk premium is 6%.
Assuming a normal economy, the expected return on Rearden Metal's debt will be:
= 3% + 0.26(6%)
= 0.03 + (0.26 × 0.06)
= 0.03 + 0.0156
= 0.0456
= 4.56%
= 4.6% approximately
Explain how the company integrates ISO 14000 standards in its manufacturing plants. Support your explanation with citations from your textbook or outside sources.
Answer:
following are the solution to the given question:
Explanation:
ISO 14000 integration:
Its sense of responsibility that will provide the highest quality product for society encourages them and also be socially responsible for many various factors that output generating income. Much like ISO 9000, a quality control program with both the highest quality products they have ISO 1400 that calculates staff capabilities from the very first stage of manufacturing to the very last phase and protect or prevent damage to an ecosystem throughout their interest. Nissan seems to have this alignment with production lines to satisfy consumers give a hand to the conservation of national resources of their very own place. They have the Branch of environmental protection Management concentrating only on protecting the environment. We conduct research and other activities which have proven environmentally beneficial.Which waste could be corrected by implementing flow, reducing the interval and pulling demand from the customer
Answer: c) Inventory.
Explanation:
Inventory waste can be corrected with certain methods such as reducing inventory interval. This is the time between when inventory is received and when it is sold off. Reducing this would mean that less inventory stays with the company thereby reducing the chance of wastage.
Pulling demand from the customer would also work as the company would only order inventory that the customer demands as well as keeping a minimal amount of inventory on hand. This very minimal amount of inventory would ensure that less inventory is on hand to be wasted.
2. Suppose you are a producer of asphalt located in China. Petroleum is one of the major inputs for asphalt. Your company must import petroleum which is sold in a world market and priced in U.S. dollars. How are the profits of your company affected when the yuan appreciates against the dollar
Answer: There'll be an increase in profit.
Explanation:
Appreciation of a currency is when the value of a currency increases. Based on the information given in the question, since the company imports petroleum which is sold in a world market and priced in U.S. dollars, when the Yuan appreciates against the dollar, this will bring about increase in profit to the company.
This is because when the Yuan appreciates against the dollar, the company will be spending a lessee amount to buy petroleum and since the cost of production has been reduced, it'll bring about an increase in profit.
Job, Career, Lifestyle, Economy, Global Economy, Job Market,
Team, Outsourcing, Telecommuting all use in a paragraph
Answer:
The answer to this question is given below in the explanation section.
Explanation:
Corona pandemic impacted all the businesses and the global economy negatively. As corona pandemic begin and spread all over the world, people lost their jobs and this pandemic impacted their career such as some airline business closes their offices and services. Businesses have started working remotely and outsourcing their services online. People and businesses shifted toward the online job market and hired from freelancing websites to make team to run business. People that are working online, they communicate virtually with the business owner/manager through telecommuting services and discuss business deliverables, etc. This pandemic also affected the lifestyle of people all over the world.
A company's beginning inventory is $160,000, its net purchases are $260,000, and its net sales total $430,000. Its normal gross profit percentage is 35% of sales. Using the gross profit method, how much is ending inventory?
Answer:
$140,500
Explanation:
First, we need to determine cost of goods available for sale.
$160,000 beginning inventory + $260,000 net purchases = $420,000 cost of goods available for sale.
We also calculate estimated cost of goods sold
(1 - 35%) × $430,000 = $297,500 cost of goods sold
Ending inventory = Cost of goods available for sale - Cost of goods sold
= $420,000 - $297,500
= $140,500
Pilot Motors Corporation is an automobile manufacturer. The company produces its own motors, tires, and other automobile parts. Pilot has the opportunity to purchase tires from another manufacturer instead of producing the tires in its own facility. This type of decision is typically known as a(n):
Answer:
Outsourcing decision
Explanation:
Outsourcing is a practice by companies where products or services are obtained from third parties rather than being obtained internally.
The main aim of outsourcing is to reduce cost.
When it is cheaper to obtain a service for a particular job role, rather than training new staff to fill the position. The company is practising outsourcing.
In the given scenario Pilot has the opportunity to purchase tires from another manufacturer instead of producing the tires in its own facility.
This is an outsourcing decision most likely to reduce cost of producing automobile parts internally.
You are considering the following three mutually exclusive projects. The required rate of return for all three projects is 14%. Year A B C 0 $ (1,000) $(5,000) $(50,000) 1 $ 300 $ 1,700 $ 0 2 $300 $ 1,700 $15,000 3 $ 600 $1,700 $ 28,500 4 $300 $1,700 $ 33,000 What is the IRR of the best project
Answer:
Project A has the highest IRR. the IRR is 17.49%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
For project A
Cash flow in year 0 = -1000
Cash flow in year 1 = 300
Cash flow in year 2 = 300
Cash flow in year 3 = 600
Cash flow in year 4 = 300
IRR = 17.49%
For project B
Cash flow in year 0 = -5000
Cash flow each year from year 1 to 4 = 1700
IRR = 13.54%
For project C
Cash flow in year 0 = -50,000
Cash flow in year 1 = 0
Cash flow in year 2 = 15,000
Cash flow in year 3 = 28,500
Cash flow in year 4 = 33,000
IRR = 14.23%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.