Answer:
Matching
Explanation:
The scenario mentioned in the question is based on the accounting principle of Matching which requires that the asset (which is recorded at the time of its purchases) to be distributed and matched over the time of its useful life in order to balance the cost over a period (in the form of expenses). This recording of the asset as an expenses when it is used is known as depreciation.
if a $10,000 par t bill has a discount quote and a 180-day maturity, what is the market price of the instrument
Answer:
$9,787.50
Explanation:
Assuming that discount rate = 4.25%
Discount rate quote =4.25%
Par value = $10,000
Maturity = 180 days
Discount yield = (Par value - Price)/Par value * 360/ Days to maturity
0.0425=($10,000-Price)/$10,000 *360/180
0.0425=($10,000-Price)0.0002
0.0425 = $2 - 0.0002*PRICE
0.0002Price = $2 - 0.0425
0.0002Price = $1.9575
Price = 1.9575/0.0002
Price = $9,787.50
Hence, the market price of the instrument is $9,787.50
A four-year maturity zero percent coupon corporate bond with a required rate of return of 12 percent has a duration of ________ years.
Answer: 4 years
Explanation:
A four-year maturity zero percent coupon corporate bond with a required rate of return of 12 percent has a duration of 4 years.
The duration of a zero coupon bond is the life of the bond. In this case, the life of the bod is given in the question as 4 years.
Therefore, the answer will be 4 years.
A company is preparing a bid on a government contract for 40 units of a certain product. The operations manager estimates the assembly time required for the first two units to be 10.4 hours and 8.8 hours respectively. Approximately how long will it take to produce the last ten units?
Answer:
45.136 hours
Explanation:
learning rate = time needed to produce second unit / time needed to produce first unit = 8.8 hours / 10.4 hours = 0.8462 ≈ 85%.
time needed to produce the last 10 units = cumulative time needed to produce 40 units - cumulative time needed to produce 30 units
cumulative time needed to produce 40 units = 10.4 hour x 21.43 (cumulative improvement factor for 40 units, 85%) = 222.872 hourscumulative time needed to produce 30 units = 10.4 hour x 17.09 (cumulative improvement factor for 30 units, 85%) = 177.736 hourstime needed to produce the last 10 units = 222.872 hours - 177.736 hours = 45.136 hours
Jen Rogers withdrew a total of $26,000 from her business during the current year. The entry needed to close the withdrawals account is:________
a. Debit Income Summary and credit Dividends for $20,000.
b. Debit Retained Earnings and credit Dividends for $20,000.
c. Debit Dividends and credit Cash for $20,000.
d. Debit Dividends and credit Retained Earnings for $20,000.
e. Debit Income Summary and credit Cash for $20,000.
Answer:
b. Debit Retained Earnings and credit Dividends for $20,000.
Explanation:
The journal entry to record the withdrawals or dividends is:
Dr Dividends 20,000
Cr Cash 20,000
at the end of the year, you close the dividends account against retained earnings:
Dr Retained earnings 20,000
Cr Dividends 20,000
this entry reduces the company's equity since retained earnings has a normal credit balance.
According to the CAPM, what is the expected market return given an expected return on a security of 14.6%, a stock beta of 1.2, and a risk free interest rate of 5.0%?
Answer:
the market return is 13%
Explanation:
The computation of the expected market return is shown below:
As we know that
Expected return = risk free rate + beta × (market return - risk free rate)
14.6% = 5% + 1.2 × (market return - 5%)
14.6% - 5% = 1.2 × (market return - 5%)
9.6% = 1.2 × (market return - 5%)
8% = (market return - 5%)
So, the market return is
= 8% + 5%
= 13%
hence, the market return is 13%
A company is considering constructing a plant to manufacture a proposed new product. The land costs $300,000, the building costs $600,000, the equipment costs $250,000, and $100,000 additional working capital is required. It is expected that the product will result in sales of $750,000 per year for 10 years, at which time the land can be sold for $400,000, the building for $350,000, and the equipment for $50,000. All of the working capital would be recovered at the EOY 10. The annual expenses for labor, materials, and all other items are estimated to total $475,000. If the company requires a MARR of 15% per year on projects of comparable risk, determine if it should invest in the new product line. Use the AW method.
Answer:
The answer is "$ 70,245".
Explanation:
Annual value:
By using the following formula, capital expenditure can be calculated:
[tex]Investing \ capital = -LC- BC -EC -WC \\\\LC = \text{cost of land}\\ BC = \text{cost of construction}\\ EC = \text{cost of equipment} \\WC = \text{working capital}[/tex]
In the above equation, substitute the respective values as follows:
[tex]capital = -\$ 300,000- \$ 600,000- \$ 250,000-\$ 100,000[/tex]
[tex]= -$ 1,250,000[/tex]
The anticipated annual revenues or sales are at $750,000.
The following formula can be used to calculate the market value:
[tex]=SL+SB+SE[/tex]
Where,
[tex]SL = \text{Land sale price}\\\\ SB = \text{Construction market price}\\\\ SE = \text{equipment sales price}[/tex]
Replace the respective values in the equation of market value as follows:
[tex]Market \ value = 400,000+350,000+50,000[/tex]
[tex]=800,000[/tex]
Annual value calculation:
Calculation of the annual value is as follows:
[tex]= 750,000-475,000-1,250,000(\frac{i(1+i)^n}{(1+i)^n-1}) +900,000\frac{i}{(1+i)^n-1}\\\\\text{ by solving the above value the answer is: }\\\\=70.245[/tex]
Costs are termed as the expenses or the price that the firm incurs from the process of manufacturing the raw material to the process of availing goods and services or the final finished product to the customer in the market at the prevailing and the affordable price.
The total annual value to get invested is "$ 70,245".
Calculation of the Capital Expensiture:
[tex]\text{Investing Capital}= -LC-BC-EC-WC[/tex]
LC= cost of land
BC= cost of construction
EC= cost of equipment
WC= working capital
[tex]\text{Investing Capital}= -LC-BC-EC-WC[/tex]
[tex]=-\$300000-\$600000-\$250000-\$100000[/tex]
=-1250000
The anticipated annual revenues or sales are at $750,000.
Calculation of the market value:
Market value= [tex]SL+SB+SE[/tex]
SL = land sale price
SB= construction market price
SE= equipment sale price
Market price= [tex]SL+SB+SE[/tex]
=400000+350000+50000
= 800000
Calculation of Annual value:
[tex]750000-475000-1250000\frac{i(1+i)^{10} }{(1+i)^{10} -1} +900000\times\frac{i}{(1+i)^{10}-1 }[/tex]
After the calculation of the above formula or simplifying it,
The final answer is $ 70245.
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A pet products company is developing a dog feeding system that senses when a dog is hungry and dispenses food into its bowl. This product is marketed toward owners with long, unpredictable workdays who want their pet to remain on a regular eating schedule. The company has the complementary assets necessary to fully develop the product. There are also high barriers to imitating the innovation and a very limited number of competitors. Based on this information, the company should:
Answer:
Develop and market the product alone.
Explanation:
Marketing can simply be said to be an the activity, institution set and also ways of creating, communicating, delivering, and exchanging offerings that customers importantly needs, partners, and society at large. Product, place, price, and promotion are used to meet the needs and wants of the final consumer. Developing and marketing the product alone involves creating the product and finding different ways/means to get the consumer aware of the product and ensuring the consumer accept and buys the product but it needs a lot of planning. Succeeding in developing and marketing the product will bring about a lot of profit and recognition for the company.
If the tax on gasoline is increased to provide incentives to curb air pollution, then the tax serves as
Answer:
A user fee.
Explanation:
These are general fees that are known to be paid by some countries indigenous occupants which tends to commence its reading from the first of January till the 31st of December. They particularly known to be renewable in most cases. User fees confer with a financing mechanism that has two main characteristics: payment is created at the purpose of service use and there's no risk sharing. User fees can entail any combination of drug costs, supply and medical material costs, entrance fees or consultation fees. they're typically obtained each visit to a health service provider, although in some cases follow-up visits for the identical episode of illness is covered by the initial payment.
A company borrowed $29,000 by signing a 90-day promissory note at 12%. The total interest due on the maturity date is: (Use 360 days a year.) Multiple Choice $72.50 $435.00 $870.00 $1,305.00 $3,480.00
Answer:
c. $870.00
Explanation:
Interest up to maturity date = $29,000 * 12% * 90/360
Interest up to maturity date = $29,000 * 0.12 * 90/360
Interest up to maturity date = $870
Private markets fail to account for externalities because
a. the government cannot easily estimate the optimal quantity of pollution.
b. externalities don't occur in private markets.
c. decisionmakers in the market fail to include the costs of their behavior to third parties.
d. sellers include costs associated with externalities in the price of their product.
Answer: decision makers in the market fail to include the cost of their behavior to third parties
Explanation:
An externality simply means the effect of a particular economic decision that's taken by an individual or a firm on a third party or someone who isn't involved in the decision. This externality can either be positive or negative.
Private markets fail to account for externalities because decision makers in the market fail to include the cost of their behavior to third parties.
Externality can bring about market failure which has to do with not allocating resources efficiently in the market. This is one reason why government intervene in the market.
Exxon-Mobil is planning to sell a number of producing oil wells. The wells are expected to produce 100,000 barrels of oil per year for 8 more years at a selling price of $28 per barrel for the next 2 years, increasing by $1 per barrel through year 8. How much should an independent refiner be willing to pay for the wells now, if the interest rate is 10% per year?
Answer:
$15,297,732.26 or $16,098,076.98
Explanation:
An independent refiner will be willing to pay the discounted value of the total proceeds from oil sales from the oil wells.
The question is ambiguous regarding the rate of increase in the price of oil after year 2, so two solutions are provided for the increase.
Solution 1: oil price is $28 for years 1 and 2, then increases by $1 to $29 for years 3 to 8.
Inflow for years 1 and 2 = 28 * 100,000 = 2,800,000
Inflows for years 3 to 8 = 29 * 100,000 = 2,900,000
Therefore, the present value of all inflows with a discount rate of 10% =
[tex]\frac{2,800,000}{1.1} +\frac{2,800,000}{1.1^{2}} +\frac{2,900,000}{1.1^{3}}+\frac{2,900,000}{1.1^{4}}+\frac{2,900,000}{1.1^{5}}+\frac{2,900,000}{1.1^{6}}+\frac{2,900,000}{1.1^{7}}+\frac{2,900,000}{1.1^{8}}[/tex]
= $15,297,732.26.
Solution 2: oil price is $28 for years 1 and 2, then increases by $1 every year from years 3 to 8.
Inflow for years 1 and 2 = 28 * 100,000 = 2,800,000
Inflows for years 3 = 29 * 100,000 = 2,900,000
Inflows for years 4 = 30 * 100,000 = 3,000,000
Inflows for years 5 = 31 * 100,000 = 3,100,000
Inflows for years 6 = 32 * 100,000 = 3,200,000
Inflows for years 7 = 33 * 100,000 = 3,300,000
Inflows for years 8 = 34 * 100,000 = 3,400,000
Therefore, the present value of all inflows with a discount rate of 10% =
[tex]\frac{2,800,000}{1.1} +\frac{2,800,000}{1.1^{2}} +\frac{2,900,000}{1.1^{3}}+\frac{3,000,000}{1.1^{4}}+\frac{3,100,000}{1.1^{5}}+\frac{3,200,000}{1.1^{6}}+\frac{3,300,000}{1.1^{7}}+\frac{3,400,000}{1.1^{8}}[/tex]
= $16,098,076.98.
Meric Mining Inc. recently reported $17,500 of sales, $7,500 of operating costs other than depreciation, and $1,200 of depreciation. The company had no amortization charges, it had outstanding $6,500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 25%. How much was the firm's net income after taxes
Answer:
$6,295.31
Explanation:
Net income=earnings before tax *(1-tax rate)
earnings before tax=sales-operating costs- depreciation-interest expense
sales=$17,500
operating costs=$7,500
depreciation=$1,200
interest expense=bonds value*interest rate=$6,500*6.25%=$406.25
earnings before tax=$17,500-$7,500-$1,200-$406.25=$8,393.75
tax rate=25%
net income after taxes=$8,393.75*(1-25%)
net income after taxes=$6,295.31
Now suppose that the school Durbin attended closed down before he could finish his education. In court, Durbin argues that this resulted in a failure of consideration: he did not get something of value in exchange for his promise to pay. Assuming that the government is a holder of the promissory note, will this argument likely be successful against it? Why or why not?
Answer:
No, Durbin owes the government. Durbin signed a promissory note with his bank and then defaulted, so the bank collected the money from the government and it became the holder in due course. Durbin did receive consideration, he received money that he paid to the school.
The document signed by Durbin complies with all the requirements necessary for a valid negotiable instrument:
It is an unconditional order to payIt involves an specific amount of moneyIt is written and signedThe note is made to the bearerThe facts are simple, Durbin signed a valid negotiable instrument and is liable for it. Probably Durbin's best shot is to sue the school and try to recover damages form it. Even if the school closed or declared bankruptcy, Durbin can still try to collect money form them.
The Timberlake-Jackson Wardrobe Co. has 10.5 percent coupon bonds on the market with nine years left to maturity. The bonds make annual payments and have a par value of $1,000. If the bonds currently sell for $1,142.49, what is the YTM
Answer:
bébete la pastilla Randy jariel
A firm obeys the least-cost rule by equating the ratios of marginal __________ product to the __________ price.
Answer:
Marginal product, factor
Explanation:
Least cost rule states that the level of production where there is least cost is when the ratio of labour marginal product to its price is equal to ratio of capital marginal product to its price.
The two factors that will be adjusted are labour and capital while maintaining a given level of output.
For example decision during a production cycle can be wether to hire staff on contract or permanent basis or wether to buy equipment or hire them.
The marginal cost and factor price of labour and capital needs to be equated to achieve least cost
Melissa knows that buying followers who do not exist may offer a quick and inexpensive way to meet short-term social media objectives. She also knows that the consequences likely will not be positive or productive. She must make a decision and that decision-making process is an example of
Answer: strategizing and ethical decision making
Explanation:
Based on the above scenario in the question, the decision-making process which Melissa will make is an example of strategizing and ethical decision making.
Ethical decision-making has to do evaluating different options which are available by an individual and choosing the best one which is considered to be good and ethical and won't be in about negative perception from others.
suppose big d inc just paid a dividend of .50 per share it is expected dto increase its dividend by 2 per year if the market requires a return of 10 on assets of this risk how much wshould the stock be selling for
The question is incorrect, the correct question is stated below.
Suppose Big D, inc., just paid a dividend of $0.50 per share. It is expected to increase its dividend by 2% per year. If the market requires a return of 10% on assets of this risk, how much should the stock be selling for?
Answer:
The stock should be selling for P0 = $6.375 rounded off to $6.38
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 * (1+g) is dividend expected for the next period g is the growth rate r is the required rate of return
P0 = 0.5 * (1+0.02) / (0.10 - 0.02)
P0 = $6.375 rounded off to $6.38
Saine Corporation will pay a $3.25 per share dividend next year. The company pledges to increase its dividend by 5 percent per year, indefinitely. If you require a return of 10.5 percent on your investment, how much will you pay for the company’s stock today?
Answer:
$59.10
Explanation:
P0 = D1/r-g
P0 = $3.25 / 0.105 - 0.05
P0 = $3.25 / 0.055
P0 = $59.09090909090909
P0 = $59.10
Thus, the price currently we will like to pay for the stock is $59.10
if somebody asks me if i need help on my work and i say " no ty " , is that rude?
Do you think the government is concerned with human rights, worker production, or something altogether different?
Answer:
I think the government is not concerned with human rights nor worker production.
Explanation:
I dont think that the government is concerned with human rights since they aren't doing several anything to ensure the dignity of human life in several levels of government, from the most basic human right to the least important, we are for example not doing anything about the homeless people, or we are not ensuring free education for our youth, we as a country have a problem with studying college cause the educational system is one of the most expensives in the world, and caring for the worker production is also somethign that we are not doing cause for example not everyone has free healthcare like Canada or other countries have, so I do think the government is concerned about things that are completely different.
Examples of adjusting entries could include all of the following except: Group of answer choices Recording interest earned on bank account balances. Recording revenues earned by year end but not yet recorded. Recording the purchase of office supplies. Recording unpaid taxes. Recording the expiration of prepaid insurance.
Answer:
Recording the purchase of office supplies.
Explanation:
The adjusting entries are those entries which are required to record at the closing of the accounting period so that the balances of all the temporary accounts would be altered to match the accrual basis of accounting
In the given option, the third option is not covered as it is a simple business transaction that does not required any kind of adjustment
But all others required adjusting entries
Therefore the same is to be considered
The following data were taken from Castle, Inc. Cost of goods sold $894,000 Inventory, end of year 78,000 Inventory, beginning of the year 92,000 What is (1) the inventory turnover ratio and (2) the number of days' sales in inventory for Castle Inc.
Answer: Inventory turnover ratio =10.52
Days sale inventory =34.70 days
Explanation:
Inventory turnover ratio = Cost of goods sold / Average inventory for same period
First Calculating Average inventory, we have that
Beginning inventory+ Ending inventory / 2
= ($92000 + $78000)/2 = $170,000 /2 = $85,000
Therefore, Inventory turnover ratio = $894, 000 / $85,000 = 10.5178 rounded to 10.52
2) Days' sale inventory = 365 / Inventory turnover ratio
= 365 / 10.52 = 34.70 days
Answer:
1. 10.52 times
2. 34.70 days
Explanation:
(1) the inventory turnover ratio
the inventory turnover ratio = Cost of goods sold ÷ Average Inventory
= $894,000 ÷ ( $92,000 + $ 78,000)/2
= 10.52 times
(2) the number of days' sales in inventory
number of days' sales in inventory = Average Inventory ÷ (Cost of goods sold/365)
= $85,000 ÷ ($894,000 /365)
= 34.70 days
As the television industry has changed in the last few decades from just three major networks to a multiplicity of networks, one of the major aspects of business strategy for the newer networks is a(n) __________ than the traditional networks. a. narrower target market b. increased use of support activities to capture value c. broader target market
Answer:
a. narrower target market
Explanation:
The narrow target market is the market in which it targets to its core customers that means those customers who use the products mostly and also their spending power is high. It involves advantage like competitive strategies etc
Here in the given situation since the television industry is changed so for business strategy point of view the newer network would be narrower target market and the same is to be considered
hence, the option is a.
Selected accounts with some amounts omitted are as follows: Work in Process Oct. 1 Balance 20,200 Oct. 31 Goods finished X 31 Direct materials 90,300 31 Direct labor 152,300 31 Factory overhead X Finished Goods Oct. 1 Balance 13,700 31 Goods finished 348,800 If the balance of Work in Process on October 31 is $199,100, what was the amount of factory overhead applied in October
Answer:
allocated manufacturing overhead= $285,100
Explanation:
Giving the following information:
Work in Process Oct. 1 Balance 20,200
Direct materials 90,300
Direct labor 152,300
Factory overhead X
Goods finished 348,800
Work in Process on October 31 is $199,100
To calculate the factory overhead applied, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
348,800 = 20,200 + 90,300 + 152,300 + allocated manufacturing overhead - 199,100
allocated manufacturing overhead= 348,800 - 20,200 - 90,300 - 152,300 + 199,100
allocated manufacturing overhead= $285,100
According to the Census Bureau, in October 2016, the average house price in the United States was $28,658. 6 years earlier, the average price was $21,608. What was the annual increase in the price of the average house sold
Answer:
4.7%
Explanation:
Calculation for the annual increase in the price of the average house sold
Using this formula
A=P(1+r/100)^n
R = (FV / PV)1/6– 1
where,
A represent future value
P represent present value
r represent rate of interest
n represent time period.
Let plug in the formula
$28,458=$21,608*(1+r/100)^6
($28,458/$21,608)^(1/6)=(1+r/100)
(1+r/100)=1.04696
r=1.04696-1
=4.7% Approximately
Therefore the annual increase in the price of the average house sold will be 4.7%
You are evaluating a stock return. You are expecting the stock return to change based on economy status. You are expecting that the probability of recession is 20%, normal is 30% and boom is 50%, and returns are -5%, 10%, and 13% respectively. What is the expected rate of return on this stock
Answer:
The expected rate of return on this stock is 8.5%
Explanation:
The expected rate of return is shown below:
= Recession probability × return + normal probability × return + boom probability × return
= 20% × -5% + 30% × 10% + 50% × 13%
= -1% + 3% + 6.5%
= 8.5%
Hence, the expected rate of return on this stock is 8.5%
We simply applied the above formula
The same is to be considered
A company currently spends $4,295 on operating and maintenance costs per year. They expect these cost to increase by $1,111 for the next 5 years. What is the equivalent annual cost of these O & M costs if the MARR is 8.1%?
Answer:
equivalent annual cost = $7,455.39
Explanation:
current costs $4,295
costs in 1 year = $5,406
costs in 2 years = $6,517
costs in 3 years = $7,628
costs in 4 years = $8,739
costs in 5 years = $9,850
first we must calculate the PV of operating and maintenance costs for years 1 through 5 = $29,688.92
equivalent annual cost = PV / PV annuity factor
PV annuity factor, 8.1%, 5 periods = 3.98221
equivalent annual cost = $29,688.92 / 3.98221 = $7,455.39
The best measure of a firm's sustainable income is: Select one: a. income before extraordinary items b. income from continuing operations c. net income d. income before extraordinary item and change in accounting principle
Answer: b. income from continuing operations
Explanation:
The Sustainable income of a firm refers to the income that it derives from its operations in order to be able to fund the company. The best measure of such would therefore be income from continuing operations.
Income from Continuing Operations are so named because they come from the operations that the firm still operates and have not shutdown or sold off. The income that these operations make is what will keep the company sustained in future as they are still in operation.
A company paid an annual dividend of $2.50 per share yesterday. The dividend is expected to remain constant for three years. At year three, after receiving the dividend, the stock can be sold for $47 a share. If the appropriate discount rate for the stock is 9.4 percent, what is the price of the stock today
Answer:
$42.18
Explanation:
The price of the stock = Dividend in year 1 / (1 + discount rate)^1 + Dividend in year 2 / (1 + discount rate)^2 + Dividend in year 3 / (1 + discount rate)^3 + Price in year 3 / (1 + discount rate)3^
The price = $2.5 / 1.094 + $2.5 / 1.0942 + $2.5 / 1.0943 + $47 / 1.0943
The price = $2.5 / 1.094 + $2.5 / 1.0942 + $49.5 / 1.0943
The Price = $42.18
Which two of the four pieces of market data provided will be the most important toward properly vetting your backpack? Feature Preferences and Purchase Behavior Feature Preferences and Demographics Price Preference and Feature Preferences Purchase Behavior and Demographics Demographics and Price Preference
Answer:
Price Preference and Feature Preferences
Explanation:
The price preference and feature preferences data would be most important for properly vetting backpack purchases.
Price preference data would be required to compare and evaluate the most affordable brand of the backpack for making a purchase decision.
Feature preference data gives the understanding of various features, qualities, and attributes that different backpack's barnds are offering.
Therefore, this information is used for reviewing the backpack that would satisfy the customers in the most effective manner.
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