Answer:
$14,621.99
Explanation:
Calculation to determine what would be the amount of the annual rental payments Sage Hill demands of MTBA,
Let X be the annual lease payments
Annuity factor of 8% for 9 years = 6.74664
Discounting factor of 8% at beginning of 9 years = 0.54027
Annual Rental Payments=$100,000 = (X * 6.74664) + ($2,500 * 0.54027)
Annual Rental Payments=$100,000 = (X * 6.74664) + $1350.675
Annual Rental Payments=(X * 6.74664) = $100,000 - 1,350.675
Annual Rental Payments=X = 98,649.325 / 6.74664
Annual Rental Payments=X = $14,621.99
Annual Rental Payments=X = $14,621.99
Therefore, what would be the amount of the annual rental payments Sage Hill demands of MTBA , is $14,621.99
Lexigraphic Printing Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows:
Old Machine
Cost of machine, 10-year life $89,000
Annual depreciation (straight-line) 8,900
Annual manufacturing costs, excluding depreciation 23,600
Annual nonmanufacturing operating expenses 6,100
Annual revenue 74,200
Current estimated selling price of machine 29,700
New Machine
Purchase price of machine, six-year life $119,700
Annual depreciation (straight-line) 19,950
Estimated annual manufacturing costs, excluding depreciation 6,900
Annual non-manufacturing operating expenses and revenue are not expected to be affected by purchase of the new machine.
Required:
1. Prepare a differential analysis as of April 30 comparing operations using the present machine (Alternative 1) with operations using the new machine (Alternative 2). The analysis should indicate the total differential income that would result over the six-year period if the new machine is acquired.
2. Choices of what other factors should be considered
A. Was the purchase price of the old machine too high?
B. What effect does the federal income tax have on the decision?
C. What opportunities are available for the use of the $90,000 of funds ($119,700 less $29,700 proceeds from the old machine) that are required to purchase the new machine?
D. Should management have purchased a different model of the old machine?
E. Are there any improvements in the quality of work turned out by the new machine?
Answer:
Lexigraphic Printing Company
1. Differential Analysis as of April 30:
Old Machine New Machine Difference
Annual revenue $74,200 $74,200
Annual depreciation (straight-line) 8,900 19,950
Annual manufacturing
costs, excluding depreciation 23,600 6,900
Annual nonmanufacturing
operating expenses 6,100 6,100
Total expenses $38,600 $32,950
Annual net income $35,600 $41,250 $5,650
Net income for 6 six years $213,600 $247,500 $33,900
2. Other factors that should be considered are:
B. What effect does the federal income tax have on the decision?
C. What opportunities are available for the use of the $90,000 of funds ($119,700 less $29,700 proceeds from the old machine) that are required to purchase the new machine?
E. Are there any improvements in the quality of work turned out by the new machine?
Explanation:
a) Dat and Calculations:
Old Machine
Cost of machine, 10-year life $89,000
Annual depreciation (straight-line) 8,900
Annual manufacturing costs, excluding depreciation 23,600
Annual nonmanufacturing operating expenses 6,100
Annual revenue 74,200
Current estimated selling price of machine 29,700
New Machine
Purchase price of machine, six-year life $119,700
Annual depreciation (straight-line) 19,950
Estimated annual manufacturing costs, excluding depreciation 6,900
Annual nonmanufacturing operating expenses 6,100
Annual revenue 74,200
Differential Analysis as of April 30:
Old Machine New Machine Difference
Annual revenue $74,200 $74,200
Annual depreciation (straight-line) 8,900 19,950
Annual manufacturing
costs, excluding depreciation 23,600 6,900
Annual nonmanufacturing
operating expenses 6,100 6,100
Total expenses $38,600 $32,950
Annual net income $35,600 $41,250 $5,650
Net income for 6 six years $213,600 $247,500 $33,900
At the beginning of his current tax year, David invests $11,700 in original issue U.S. Treasury bonds with a $10,000 face value that mature in exactly 10 years. David receives $560 in interest ($280 every six months) from the Treasury bonds during the current year, and the yield to maturity on the bonds is 3.6 percent. (Round your intermediate calculations to the nearest whole dollar amount.)
Answer: $419.96
Explanation:
Question is:
How much interest income will he report this year if he elects to amortize the bond premium?
The interest for the first period will be:
= Bond price * yield * 6/12 months
= 11,700 * 3.6% * 0.5
= $211
Bond premium amortization:
= Interest received - Interest
= 280 - 211
= $69
Bond value in second half of year:
= Bond value - Bond premium amortization:
= 11,700 - 69
= $11,631
Interest for second period:
= 11,631 * 3.6% * 0.5
= $209.36
Total interest = 210.60 + 209.35
= $419.96
Grouper Inc. wishes to accumulate $1,066,000 by December 31, 2030, to retire bonds outstanding. The company deposits $164,000 on December 31, 2020, which will earn interest at 8% compounded quarterly, to help in the retirement of this debt. In addition, the company wants to know how much should be deposited at the end of each quarter for 10 years to ensure that $1,066,000 is available at the end of 2030. (The quarterly deposits will also earn at a rate of 8%, compounded quarterly).
Answer:
Quarterly deposit= $11,653.28
Explanation:
First, we need to determine the future value of the lump sum investment. We need to use the following formula:
FV= PV*(1+i)^n
n= 10*4= 40 quarters
i= 0.08/4= 0.02
PV= $164,000
FV= 164,000*(1.02^40)
FV= $362,118.51
Now, the total difference to reach the $1,066,000:
Difference= 1,066,000 - 362,118.51= $703,881.49
To calculate the quarterly deposit, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= quarterly deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (703,881.49*0.02) / [(1.02^40) - 1]
A= $11,653.28
Choose the term that matches each definition:
a) A decrease in the solubility of an ionic compound as a result of the addition of a common ion.
b) The mass of a salt in grams that will dissolve in 100 mL of water.
c) A solution that has dissolved the maximum amount of a compound at a given temperature. Any further addition of salt will remain undissolved.
d) The product of the molarities of the dissolved ions, raised to a power equal to the ion's coefficient in the balanced chemical equation.
e) The maximum number of moles of a salt that will dissolve in 1 L of solution.
1- Solubility
2- Molar Solubility
3- Solubility product constant
4- Common ion effect
5- Saturated Solution
Answer and Explanation:
a. 4. Common ion effect, this is due to reduction in common ion effect
b. 1. SOlubility as the salt would be dissolved in 100 ml of water
c. 5. Saturated solution as the solution would be dissolved completely
if any extra addition to be made than it would not dissolved
d. 3. Solubility product constant as it used the equation
e. 2- Molar Solubility as the maximum moles would dissolve in 1 liter of solution
A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company uses machine-hours as its measure of activity.
Standard Hours per Unit of Output 8.1 machine hours
Standard Variable Overhead Rate $14.30 per machine hour
The following data pertain to operations for the last month:
Actual Hours 1,700 machine hours
Actual Total Variable Overhead Cost $24,905
Actual Output 200 units
What is the variable overhead efficiency variance for the month?
a. $567 favourable.
b. $1,144 unfavourable.
c. $1,172 favourable.
d. $1,172 unfavourable.
Answer:
b. $1,144 unfavourable.
Explanation:
The computation of the variable overhead efficiency variance is shown below:
= (Actual Hours - Standard Hours) × Standard rate per hour
=(1,700 - 8.1 × 200 units) × $14.30
= 80 × $14.30
= $1,144 unfavorable
hence, the variable overhead efficiency variance is $1,144 unfavorable
Therefore the option b is correct
Hugh, a self-employed individual, paid the following amounts during the year: Real estate tax on Iowa residence $3,800 State income tax 1,700 Real estate taxes on a vacation home 2,100 Gift tax paid on gift to daughter 1,200 State sales taxes 1,750 State occupational license fee 300 Property tax on value of his automobile (used 100% for business) 475 What is the maximum amount Hugh can claim as taxes in itemizing deductions from AGI
Answer:
$7,650
Explanation:
Calculation to determine the maximum amount Hugh can claim as taxes in itemizing deductions from AGI
Real estate tax on lowa residence $ 3,800
Add Greater of sale tax or state income tax $ 1,750
Add Real estate tax on a vacation home $ 2,100
Itemized deduction allowable $ 7,650
($3,800+$1,750+$2,100)
Therefore the maximum amount Hugh can claim as taxes in itemizing deductions from AGI is $7,650
Given the restrictions on collusion in the US, what techniques do Oligopoly firms use to stay
competitive and in business?
DONT TYPE ANSWER HERE?
Type the answer at this phone number in messages 682-245-3720 and when done type m here and I will give you brainlest
do you want the answer or people's numbers
Mercury Inc. purchased equipment in 2019 at a cost of $169,000. The equipment was expected to produce 300,000 units over the next five years and have a residual value of $49,000. The equipment was sold for $103,800 part way through 2021. Actual production in each year was: 2019 = 42,000 units; 2020 = 67,000 units; 2021 = 34,000 units. Mercury uses units-of-production depreciation, and all depreciation has been recorded through the disposal date. Required: 1. Calculate the gain or loss on the sale. 2. Prepare the journal entry to record the sale. 3. Assuming that the equipment was instead sold for $114,800, calculate the gain or loss on the sale. 4. Prepare the journal entry to record the sale in requirement 3.
Answer:
Mercury Inc.
1. The loss on the sale of the equipment = $8,000.
2. Journal Entry to record the sale:
Debit Cash $103,000
Credit Sale of Equipment $103,000
To record the receipts from the sale.
Debit Sale of Equipment $111,800
Credit Equipment $111,800
To transfer the account to the Sale of Equipment.
Debit Accumulated Depreciation $57,200
Credit Sale of Equipment $57,200
To transfer the account to sale of equipment.
3. The gain on the sale is $3,000
4. Journal Entry to record the sale in requirement 3:
Debit Cash $114,800
Credit Sale of Equipment $114,800
To record the receipts from the sale.
Debit Sale of Equipment $111,800
Credit Equipment $111,800
To transfer the account to the Sale of Equipment.
Debit Accumulated Depreciation $57,200
Credit Sale of Equipment $57,200
To transfer the account to sale of equipment.
Explanation:
a) Data and Calculations:
Cost of equipment = $169,000
Expected production units = 300,000
Estimated useful life = 5 years
Estimated residual value = $49,000
Proceeds from the sale of equipment = $103,000
Depreciable amount = $120,000 ($169,000 - $49,000)
Depreciation expense per unit = $0.40 ($120,000/300,000)
Actual production: Depreciation Expense for the year
2019 = 42,000 units * $0.40 = $16,800
2020 = 67,000 units * $0.40 = $26,800
2021 = 34,000 units * $0.40 = $13,600
Accumulated depreciation = $57,200
Net book value = $111,800 ($169,000 - $57,200)
Loss on sale of equipment = $8,800 ($111,800 - $103,000)
Sale of equipment for $114,800
Gain on sale of equipment = $3,000 ($111,800 - $114,800)
The Work in Process Inventory account for DG Manufacturing follows. Compute the cost of jobs completed and transferred to Finished Goods Inventory.
Work in Process Inventory Beginning
WIP 6,000
Direct materials 48,600
Direct labor 31,100
Applied overhead 17,300
To finished goods
Ending WIP 31,100
The cost of jobs transferred to finished goods is: _________
Answer:
$71,900
Explanation:
Calculation to determine The cost of jobs transferred to finished goods
Work in Process Inventory Beginning
Add WIP 6,000
Add Direct materials 48,600
Add Direct labor 31,100
Add Applied overhead 17,300
Less Ending WIP 31,100
FINISHED GOODS $71,900
Therefore The cost of jobs transferred to finished goods is: $71,900
two ways in which young entrepreneurs can benefit from Black Industry Scheme
Answer:
Two ways in which young entrepreneurs can benefit from the Black industrialist scheme are as follows: To gain the access to the private banking sector and finance, by equipping with the necessary equity BIP will enhance Black Manufacturing enterprises
Kelso Electric is debating between a leveraged and an unleveraged capital structure. The all equity capital structure would consist of 29,000 shares of stock. The debt and equity option would consist of 17,000 shares of stock plus $220,000 of debt with an interest rate of 6 percent. What is the break-even level of earnings before interest and taxes between these two options? Ignore taxes.
Answer:
See below
Explanation:
Break even EBIT is when earnings per share of the two plans are equal as shown below;
EPS in the first plan = EBIT/Number of shares
There are no interest and taxes
EPS in the second plan = EBIT - (Interest rate × Debt) / Number of shares. No taxes
EBIT/29,000 = EBIT - (6% × $220,000)/17,000
EBIT/29,000 = EBIT - $13,200/17,000
Cross multiply
17,000 (EBIT) = 29,000(EBIT - $13,200)
17,000EBIT = 29,000EBIT - $382,800,000
Collect like terms
$382,800,000 = 29,000EBIT - 17,000EBIT
EBIT = $382,800,000/12,000
EBIT = $31,900
The Tough Jeans Company produces two different styles of jeans, Working Life and Social Life. The company sales budget estimates that 400,000 of the Working Life jeans and 250,000 of the Social Life jeans will be sold during the year. The company begins with 9,000 pairs of Working Life and 18,000 pairs of Social Life. The company desires ending inventory of 7,500 of Working Life and 10,000 Social Life. Prepare a production budget for the year. Tough Jeans Company Production Budget For the Year Ending December 31
Answer:
Tough Jeans Company
Production Budget For the Year Ending December 31
Working Life Social Life
Budgeted Sales 400,000 250,000
Add Budgeted Closing Inventory 7,500 10,000
Total 407,500 260,000
Less Budgeted Opening Inventory (9,000) (18,000)
Budgeted Production 398,500 242,000
Explanation:
A Production Budget is prepared to determine amount of units required to meet the Sales and Inventory targets during the year.
A characteristic of a natural monopoly is that
Question 8 options:
A)
the firm is supported by the consumer and voted into existence by the voters.
B)
the firm is dedicated to the use of natural resources.
C)
there's no government intervention in the market.
D)
adding businesses in competition would increase cost to the consumer.
Answer:
Adding businesses in competition would increase cost to the consumer
Answer:
Adding businesses in competition would increase cost to the consumer
Explanation:
1. Which of the following words is generally used to describe what managers do as opposed to what leaders do?
O A. Organize
O B. Inspire
O C. Innovate
O D. Influence
A 4-year project has an annual operating cash flow of $57,000. At the beginning of the project, $4,800 in net working capital was required, which will be recovered at the end of the project. The firm also spent $23,500 on equipment to start the project. This equipment will have a book value of $5,100 at the end of the project, but can be sold for $6,000. The tax rate is 40 percent. What is the Year 4 cash flow
Answer:
$67,440
Explanation:
Year 4 cash flow = operating cash flow + terminal year cash flow
terminal year cash flow = sales price of the machine + net working capital - tax(sales price - book value)
6000 + 4800 - 0.4(6000 - 5100) = $10,400
Year 4 cash flow = $10,400 + $57,000 = $67,400
Penny Stock is the chairperson of Pirate Recording Company Inc. She is the person responsible for the tremendous growth this company has enjoyed over the past three years. It was Penny's intuition and clever negotiating that enabled the company to sign two very hot recording artists: Half a Dollar and N'elli. These groups have generated profits of over $25 million. The future looks even brighter at the firm because several current and aspiring entertainers have indicated an interest in signing on with Pirate Recording. This incredible growth has delighted everyone at the company, but it has also created a major problem for Penny. Pirate Recording has never been a major player in the recording industry, primarily because of limited capital. In order to take the company to the next level Penny realizes that she will need to expand the firm's personnel and equipment. The amount of new funds required to finance this needed expansion is $150 million. Penny has started to consult with others about how to finance this major expansion of the company. If stock is issued in Pirate Recording, analysts predict that the company has potential for strong growth. The prospects for dividend payments to stockholders, at least in the beginning, are not good. Pirate Recording will need to retain its earnings in order to grow rapidly. The firm's stock would most likely be classified as a(n):
Answer:
Pirate Recording Company Inc.
The firm's stock would most likely be classified as a(n):
growth stock.
Explanation:
Since Pirate Recording Company's stock is expected to grow rapidly more than the market average, it is regarded as a growth stock. Stockholders expect to make more capital gains by selling the stocks in the future than from collecting dividends. As Pirate Recording is in an expansion mood, with new capital injections of $150 million, it will be retaining its earnings to pursue its growth potential, thus, further exciting potential stockholders.
9. The difference between a C Corp and an S Corp is
A. only a C Corp has a board of directors.
B. all companies must start
C Corps and become S Corps.
C. the tax code that each uses is different.
D. the personal assets of a C Corp owner belong to the business.
Answer:
the tax code that each uses is different.
Answer:
c. the tax code that each uses is different
Explanation:
what is the role of public administration
Matching Exercise: Match the type of bond to its definition. Matching Exercise: Match the type of bond to its definition. a) The Catastrophe Bond: (Click to select) b) A Warrant Bond: (Click to select) c) An Income bond: (Click to select) d) A Convertible bond: (Click to select) e) A Put bond: (Click to select)
Answer:
The Catastrophe Bond: covers hurricanes and earthquakes in the U.S.
b) A Warrant Bond: gives the buyer of a bond the right to purchase shares of stock in the company at a fixed price.
An Income bond: states that the bond's coupon payment depends on company income.
c)
Put Bond : allows the holder to force the issuer to buy back the bond at a stated price.
Convertible bond : can be swapped for a fixed number of shares of stock anytime before maturity at the holder's option. .
Explanation:
A catastrophe bond debt instrument usually used by insurance companies. They are usually high yield. The issuer of this type of bond receives money only if specified conditions occur e.g. flood
Explain the effect of a lack or shortage of entrepreneurs on the Economy
Explanation:
Lack of entrepreneurs will lead to lower jobs, innovative products and a decline in economy. By developing new technology, goods, and services, entrepreneurs help to fuel the economic growth. ... Thus, a shortage in entrepreneurs will not cater to these advantages and the economy will suffer.
Bernice Ruel operates Leather Unlimited, a leather shop that sells luggage, handbags, business cases, and other leather goods. During the month of March, the following transactions occurred. The applicable sales tax rate is 6%.
Mar. 2 Sold merchandise on account to Emma Sommers, $250.00, plus sales tax. 9 Sold merchandise on account to Shelly Feinstein, $470.00, plus sales tax. 12 Emma Sommers returned $40.00 worth of merchandise purchased on March 2 for credit. 18 Sold merchandise on account to Maureen Hodge, $110.00, plus sales tax. 19 Sold merchandise on account to Frank MacDonald, $165.00, plus sales tax. 22 Received payment from Emma Sommers on account. 26 Maureen Hodge was given an allowance of $30.00 when she reported damage in the merchandise purchased on March 18. 28 Sold merchandise on account to Emma Sommers, $500.00, plus sales tax. 29 Sold merchandise on account to Shelly Feinstein, $230.00, plus sales tax. 31 Received payment from Maureen Hodge on account. 31 Cash sales for the month were $2,600, plus sales tax.
Required:
Enter the above transactions in the general journal.
Assume and act like you posted the journal entry to the Accounts Receivable accounts. Do not forget the Post Ref. Information
Chart of Accounts: Cash 101, Accounts Receivable 122, Sales Tax Payable 231, Sales 401, Sales Returns & Allowances 401.1
GENERAL JOURNAL
Page 1
Date
Description
Post
Ref.
Debit
Credit
Answer:
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On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $14,000. Jarden prepares a schedule of its December 31 accounts receivable by age.
Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible
$840,000 Not yet due 1.25%
336,000 1 to 30 days past due 2.00
67,200 31 to 60 days past due 6.50
33,600 61 to 90 days past due 32.75
13,440 Over 90 days past due 68.00
Required:
Prepare the adjusting entry to record bad debts expense.
Answer:
Jarden Co
Adjusting Entry
December 31:
Debit Bad Debts Expense $27,731
Credit Allowance for Doubtful Accounts $27,731
To record bad debts expense.
Explanation:
a) Data and Calculations:
Allowance for Doubtful Accounts, unadjusted credit balance = $14,000
Accounts Age of Accounts Expected % Uncollectible
Receivable Receivable Uncollectible Allowance
$840,000 Not yet due 1.25% $10,500 ($840,000*1.25%)
336,000 1 to 30 days past due 2.00 6,720 ($336,000*2%)
67,200 31 to 60 days past due 6.50 4,368 ($67,200*6.5%)
33,600 61 to 90 days past due 32.75 11,004 ($33,600*32.75%)
13,440 Over 90 days past due 68.00 9,139 ($13,440*68%)
$1,290,240 $41,731
T-account:
Allowance for Doubtful Accounts
Account Titles Debit Credit
Beginning balance $14,000
Bad Debts Expense 27,731
Ending balance $41,731
Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows:
MONTH DEMAND (UNITS)
January 4,130
February 4,230
March 3,930
April 4,330
May 4,930
June 4,630
July 5,230
August 4,830
September 5,330
October 5,630
November 6,230
December 5,930
Required:
Using linear regression technique, what would you estimate demand to be for each month next year?
Answer:
First month of next month ( x = 13) = 6170
second month ( x = 14 ) = 6389
Explanation:
Determine the estimate demand for each month next year ( use Linear regression )
Linear regression equation: y = a + bx
a = intercept between regression line and y-axis
b = slope of regression
x = month
y = demand
Using excel table attached below
∑x = 78
∑xy = 413340
∑y = 59360
∑(x)^2 = 650
N = 12
(∑x )^2 = 6084
next we will calculate the slope and intercept value
b ( slope ) = ( 12 * 413340 ) - ( 78 * 59360 ) / ( 12 * 650 - 6084 )
= 330,000 / 1716 = 192.31
intercept ( a ) = 59360 - ( 192.31 * 78 ) / 12 = 3696.65
Back to equation 1 :
Linear regression equation = Y = 3696.65 + 192.31 x
where x = number of month ( i.e. 13 , 14 ….. 24 )
To determine the estimate demand for each month next month
Linear regression equation : Y = 3696.65 + 192.31 x
first month of next month ( x = 13) = 3696.65 + 192.31 * ( 13 )
second month ( x = 14 ) = 3696.65 + 192.31 * ( 14 )
Note : apply same equation to every month ( i.e. from x = 15 to 24 ) to determine the estimate demand for each month
Demand is the relationship between what consumers __ and __ to buy at various prices.
Answer:
willing and able
Explanation:
The demand for a product is the relationship between what consumers are willing and able to buy at the various prices. It is important to note that the ability to pay for the product or service is a key element of the demand definition. According to the law of the demand, the quantity of the product demanded will decrease as the price goes up and vice versa.
A fixed cost: Multiple Choice Is irrelevant for cost-volume-profit and short-term decision making. Changes with changes in the volume of activity within the relevant range. Does not change with changes in the volume of activity within the relevant range. Is directly traceable to a cost object. Requires the future outlay of cash and is relevant for future decision making.
Answer:
Does not change with changes in the volume of activity within the relevant range
Explanation:
The fixed cost is the cost that remains fixed whether the production level is increased or it should remain the fixed. The examples like depreciation expense, rent expense, etc
So it does not change when the volume of activity vary
Therefore the third option is correct
And, the rest of the options are incorrect
Your uncle repays a $300 loan from Tenth National Bank (TNB) by writing a $300 check from his TNB checking account. Assume these funds are the only loans and deposits available for your uncle and the bank. Complete the following T-accounts for your uncle and TNB before your uncle repays the loan. Your Uncle AssetsLiabilities $ $ Tenth National Bank AssetsLiabilities $ $ Complete the following T-accounts for your uncle and TNB after your uncle repays the loan. Your Uncle AssetsLiabilities $ $ Tenth National Bank AssetsLiabilities $ $ True or False: Your uncle's wealth has changed. True False
Answer:
a. We have:
Four your Uncle: Debit the T-accounts under Assets (Checking) for $100; Credit the T-accounts under Liabilities (Loans) with $100.
Four Tenth National Bank: Debit the T-accounts under Assets (Loan) with $100; Credit the T-accounts under Liabilities (Deposits) for $100.
b. We have:
Four your Uncle: Debit the T-accounts under Assets (Checking) for $0; Credit the T-accounts under Liabilities (Loans) with $0.
Four Tenth National Bank: Debit the T-accounts under Assets (Loan) with $100; Credit the T-accounts under Liabilities (Deposits) for $0.
c. False
Explanation:
a. Complete the following T-accounts for your uncle and TNB before your uncle repays the loan.
Note: See part a of the attached excel for the T-accounts for your uncle and TNB before your uncle repays the loan
b. Complete the following T-accounts for your uncle and TNB after your uncle repays the loan.
Note: See part b of the attached excel for the T-accounts for your uncle and TNB after your uncle repays the loan
c. True or False: Your uncle's wealth has changed.
False, his wealth has not changed. The reason is that his assets are now zero and his liabilities or loans are also now zero.
Blossom, Inc. began work in 2021 on a contract for $20720000. Other data are as follows: 2021 2022 Costs incurred to date $8880000 $13900000 Estimated costs to complete 5920000 0 Billings to date 6960000 20800000 Collections to date 4960000 17900000 If Blossom uses the percentage-of-completion method, the gross profit to be recognized in 2021 is $3552000. $4000000. $5560000. $5920000.
Answer:
the gross profit using the percentage-of-completion method is $3,552,000
Explanation:
The computation of the gross profit using the percentage-of-completion method is given below
= Contract Value × given percentage - total cost incurred
= $20,720,000 × $8,880,000 ÷ ($8,880,000 + $5,920,000) - $8,880,000
= $12,432,000 - $8,880,000
= $3,552,000
hence, the gross profit using the percentage-of-completion method is $3,552,000
These are selected 2022 transactions for Pronghorn Corporation:
Jan. 1 Purchased a copyright for $117,000. The copyright has a useful life of 6 years and a remaining legal life of 30 years.
Mar. 1 Purchased a patent with an estimated useful life of 4 years and a legal life of 20 years for $60,000.
Sept. 1 Purchased a small company and recorded goodwill of $147,000. Its useful life is indefinite.
Required:
Prepare all adjusting entries at December 31 to record amortization required by the events.
Answer:
December 31, 2022, amortization expense of copyright
Dr Amortization expense 19,500
Cr Copyright 19,500
December 31, 2022, amortization expense of patent
Dr Amortization expense 10,000
Cr Patent 10,000
No journal entry required for the Goodwill since its useful life is indefinite
You are given the following information for Huntington Power Co. Assume the company’s tax rate is 40 percent.
Debt:
7,000 6.2 percent coupon bonds outstanding, $1,000 par value, 15 years to maturity, selling for 105 percent of par; the bonds make semiannual payments.
Common stock: 340,000 shares outstanding, selling for $52 per share; the beta is 1.08.
Market: 8 percent market risk premium and 4.2 percent risk-free rate.
What is the company's WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)
WACC %
Answer:
WACC= 5.76%
Explanation:
The weighted average cost of capital (WAAC) is the average cost of all the various sources of long-term finance used by a business weighted according to the proportion which each source of finance bears to the the entire pool of fund.
To calculate the weighted average cost of capital, follow the steps below:
Step 1: Calculate the cost of Debt
The yield to maturity to Maturity can be used to work out the cost of debt using the formula below:
YM =( C + F-P/n) ÷ ( 1/2× (F+P))
C- annual coupon,
F- face value ,
P- current price,
n- number of years to maturity
YM - Yield to maturity
C- 6.2%× 1000 =62 , P- 1.05×1000= 1,050, F- 1000
AYM = 62 + (1000-1050)/15 ÷ 1/2× (1000+1050)
= 58.66 ÷ 1025
Yield to maturity =5.7%
Cost of debt= 5.7%
Step 2: Calculate the cost of Equity
Using the CAPM , the cost of equity can be worked out as follows:
E(r)= Rf +β(Rm-Rf)
E(r) =? , Rf- 4.2%, Rm-8% β- 1.08
E(r) = 4.2% + 1.08×(8-4.2) = 8.3%
Cost of equity= 8.3%
Step 3: Calculate the market value of sources of finance
Market value of equity = 52×340,000= 17,680,000.00
Market value of debt = 7,000×1,000×105 = 735,000,000.00
Step 4: Calculate the WACC
Source cost Market value cost× market value
Equity 8.3% 17,680,000 1,467,440.00
Debt 5.7% 735,000,000 41,895,000.
752,680,000. 43,362,440.
WACC= (43,362,440/ 752,680,000) × 100
= 5.76%
WACC= 5.76%
Q1. PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Harrison, New York. PepsiCo has interests in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products. In Pakistan, PepsiCo has not offered all their products which are available in other countries. Few products that they are marketing and selling in Pakistan includes Sting, Lays, Slice, Aquafina, Cheetos and much more but not all flavors are offered within these products.
a) PespsiCo is using which kind of an International strategy? Explain your reasons why? And How PespsiCo Strategic management process will work in Pakistan? Explain each process in detail.
b) What cultural factors PespsiCo needs to consider before marketing its different products in Pakistan? What kind of orientation (Ethnocentric, Polycentric, Geocentric) do you think PespsiCo is using to combat the challenge of Cross-Cultural Boundaries?