Answer:
10.71%
Explanation:
Calculation for basic earning power (BEP) ratio
Using this formula
Basic earning power (BEP) =EBIT/Total assets
Let plug in the formula
Basic earning power (BEP)=$52,500/$490,000
Basic earning power (BEP)=0.1071*100
Basic earning power (BEP)=10.71%
Therefore the basic earning power (BEP) ratio will be 10.71%
The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet: Accumulated Depreciation $ 2,868 Fees Earned 15,445 Depreciation Expense 961 Insurance Expense 563 Prepaid Insurance 3,369 Supplies 1,521 Supplies Expense 3,973 Net income for the period is
Answer:
$9,948
Explanation:
Calculation of net income is seen below
Fee earned
$15,445
Less expenses;
Depreciation
($961)
Insurance expense
($563)
Supply expense
($3,973)
Net income
$9,948
• Please note that other items like prepaid insurance, supplies are balance sheet items, hence will be reported under current assets. Accumulated depreciation is also a balance sheet item.
On January 1, 2021, Laramie Inc. acquired land for $6.2 million. Laramie paid $1.2 million in cash and signed a 6% note requiring the company to pay the remaining $5 million plus interest on December 31, 2022. An interest rate of 6% properly reflects the time value of money for this type of loan agreement. For what amount should Laramie record the purchase of land
Answer:
$6.2 Million
Explanation:
The purchase of land will be recorded as the amount paid for purchasing it. In this case the note which bears interest rate of 6% will be as per its face value plus the cash paid for purchasing of the land.
Note (at interest rate of 6%) + Cash Paid = Purchase of Land
5,000,000 + 1,200,000 = 6,200,000 or 6.2 Million
Hence, the amount of purchase of land is to be recorded as $6.2 Million.
Answer:
6.2 mil dollars
Explanation:
An advertisement announces that the price of wine will drastically increase next month. Therefore, this month we would expect a. the price to decrease and the quantity of wine sold to increase. b. both the price and quantity of wine sold to increase. c. the price to increase and the quantity of wine sold to decrease. d. both the price and quantity of wine sold to decrease
Answer:
b. both the price and quantity of wine sold to increase
Explanation:
In the context, it is given that the price of the wine will increase in a drastic manner as announced by an advertisement the next month. So, this month we could expect an increase in the price as well as the quantity of the wine that is being sold.
As per market policy, when the demand of an item increases, both the price as well as the quantity sold will increase. Accordingly, this month the demand of wine would increase as from next month the price of wine would much much more than this month. SO this month people would buy more wine.
Chiodini Incorporated has an $900,000 investment opportunity that involves sales of $2,430,000, fixed expenses of $1,044,900, and a contribution margin ratio of 50% of sales. The return on investment (ROI) for this year's investment opportunity considered alone is closest to:
Answer: 18.9%
Explanation:
Return on Investment = Net Income/ Average Investment
Net Income = Contribution Margin - Fixed Expenses
= (2,430,000 * 50%) - 1,044,900
= $170,100
Return on Investment therefore is;
= 170,100/900,000
= 18.9%
For a production budget, the ______ is the beginning inventory for the year. beginning inventory for the first quarter beginning inventory for the last quarter ending inventory for the last quarter sum of beginning inventories for the four quarters
Answer:
Beginning inventory for the first quarter.
Explanation:
The beginning inventory is book important or record that provides the accounting and management of products within the companies business. And during this case where the primary quarter is been discussed, the whole needs are determined by adding together the budgeted sales of 10,000 cases for the quarter and therefore the desired ending inventory of 6,000 cases. The ending inventory is meant to supply some cushion just in case problems develop in production or sales increase unexpectedly.
It uses goods in production and people that are on the point of be sold.
a. What price should a 3 year semi-annual 10% coupon bond with $1000 face value be trading at if the prices of similar risk zero coupon of ($100 face value) bonds are given below:
Term (In Years) Price (In $)
0.5 100
1 97
1.5 96
2 93
2.5 92
3 91
4 89
b. How would you arbitrage the opportunity if you found out that the bond in Part A above was trading at par? Specifically, explain which bond/s will you buy and which one/s will be sell today and in how much quantities?
Answer:
A) the current price of the bond is:
($50 x 1) + ($50 x 0.97) + ($50 x 0.96) + ($50 x 0.93) + ($50 x 0.92) + ($1,050 x 0.91) = $1,194.50
B) assuming that the bond is trading at par, you have a great opportunity to make money:
maturity zero coupon return of coupon
bond's price bond
0 $1,000 $0
0.5 $1,000 $50
1 $970 $100
1.5 $960 $150
2 $930 $200
2.5 $920 $250
3 $910 $300
You can buy 10 coupon bonds = -$10,000
Sell short 1 One-year zero coupon bond = $970
Sell short 1 Two-year zero coupon bond = $930
Sell short 11 Three-year zero coupon bond = $10,010
Positive cash flow = $1,910
At the end of year 1, you can pay the One-year zero coupon bond with the coupons received = $1,000 (cash flows = $0)
At the end of year 2, you can pay the Two-year zero coupon bond with the coupons received = $1,000 (cash flows = $0)
At the end of year 3, you can pay the Three-year zero coupon bonds with the coupons + maturity value received = $11,000 (cash flows = $0)
If the coupon bonds are selling at par, you could earn today $1,910 for every 10 bonds that you buy.
Find the present value of a string of equal annual cash flows that makes its first $10,000 payment 8 years from today and continues making $10,000 payments each year forever. The interest rate is 6.8%
Answer:
PV= $86,880.25
Explanation:
First, we need to calculate the present value of the perpetual annuity 8 years from now. We will use the following formula:
PV= Cf/ (i - g)
Cf= $10,000
i= 0.068
g= 0
PV= 10,000 / 0.068
PV= $147,058.82
Now, the present value today:
PV= FV/(1+i)^n
FV= 147,058.82
i= 0.068
n= 8
PV= 147,058.82 / (1.068^8)
PV= $86,880.25
Companies and institutions using computers to perform extraordinarily large calculations that would be unsuitable for most computers would employ a(n) ____. a. application server b. office workstation c. supercomputer d. scientific/engineering workstation
Answer:
c. supercomputer
Explanation:
To achieve the goals of companies and institutions that use computers to perform large calculations, the use of supercomputers would be more appropriate.
Unlike traditional computers easily used in businesses and homes, supercomputers are machines designed for processing large volumes of data and information, with high hardware performance and high potential. Supercomputers are generally used for scientific purposes, being very useful for the development of scientific research in mathematics, biology, military, etc.
Zhang Industries sells a product for $840. Unit sales for May were 600 and each month's sales are expected to exceed the prior month's results by 4%. Compute the total budgeted sales dollars for the month ended June 30.
Answer: $734,160
Explanation:
Sales in June are to be 4% higher than May.
Sales in June = 840 * ( 1 + 4%)
= 873.6 units
= 874 units rounded up
Budgeted sales dollars;
= 874 * 840
= $734,160
Morgan Manufacturing Company has the following account balances at year end: Office supplies $ 4,000 Raw materials 27,000 Work-in-process 59,000 Finished goods 97,000 Prepaid insurance 6,000 What amount should Morgan report as inventories in its balance sheet
Answer:
$183,000
Explanation:
Morgan's inventory account should include:
Raw materials for $27,000
Work in process for $59,000
Finished goods for $97,000
total value = $183,000
Prepaid insurance is a current asset account, but it doesn't include any type of goods. Office supplies are generally either expensed directly or reported under a separate account, not under inventory.
Many firms offer substantial rebates by mail or coupons for discounts at the point of sale. The people who use the rebates or coupons have ______ than the people who don't use them.
Answer:
greater price sensitivity
Explanation:
Here are the options of this question :
greater price sensitivity
less price sensitivity
inverted price sensitivity
the same price sensitivity
People who use the coupons or rebates are more price sensitive. They would probably not purchase the good or purchase less of the good if there was no rebate. It can be said that this people have an elastic demand
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
Firm A acquires firm B when firm B has a book value of assets of $255 million and a book value of liabilities of $85 million. Firm A actually pays $275 million for firm B. This purchase would result in goodwill for firm A equal to _____.
Answer:
$105 million
Explanation:
The computation of the goodwill for the Firm A is shown below;
Goodwill = Acquiring Price - (Assets - Liabilities)
= $275 million - ($255 million - $85 million)
= $275 million - $170 million
= $105 million
Hence, the goodwill for the Firm A is $105 million
We simply applied the above formula and the same is to be considered
Queensryche Pharmaceutical Company is subject to regulations issued by the Food and Drug Administration, which is a federal agency. These regulations are part of the body of
Answer:
Administrative law
Explanation:
Administrative law is a set of laws the that regulates activities of various administrative government agencies.
Such activities include rule making adjudication, and enforcement of various regulatory functions.
Administrative law is a part of public law that is used by government agencies that regulate social, economic, and political entities.
In the given scenario the Food and Drug Administration regulates pharmaceutical companies like Queensryche Pharmaceutical Company
the economic integration of Europe happened in the last ten years, i.e., since the great recession of 2008-09. True False
Answer: False
Explanation:
Europe has been integrated since the later 20th century when in 1993, their markets were integrated and there was a total free movement of goods and services across the borders of countries in Europe.
In 1999, the Euro was introduced and this helped economic growth and integration even more as they were able to pursue a single monetary policy. Trade and competition rose and goods saw a drop in prices and bargaining power increased.
in your opinion, what is the importance of contrast in culture among multicultural organization?
Answer:
Contrast Culture It provides a mirror image of the trainee's reference culture by illuminating its underpinning thoughts, values, attitudes, and behaviors.
Explanation:
In the long run: Group of answer choices production is always greater than zero. the firm considers all factors as fixed. the firm considers all factors as variable. production choices are more limited than in t
Answer:
the firm considers all factors as variable
Explanation:
The long run period is the period where all factors of production are fixed. This is usually referred to as the planning period of the firm.
The short run period is the period where some factors of production are variable and other factors are fixed
Calculate the total Social Security and Medicare tax burden on a sole proprietorship earning 2020 profit of $300,000, assuming a single sole proprietor with no other earned income. (Round your intermediate calculations to the nearest whole dollar amount.)
Answer:
The answer is "$ 25,207.45".
Explanation:
Type = single property ownership
Year= 2020
Revenue = $ 300,000
calculating the tax on social security when it's up to 132,900 USD, i.e. the basis cap on earned earnings.
[tex]\to 132,900 \times 12.40 \% \\\\\to 132,900 \times 0.1240 \\\\\to \$ \ 16,479.6\ \ \ \ or \ \ \ \ \$ \ 16,480\\\\[/tex]
Calculating the Medicare levy, subject to a deduction of 7.65% from sole ownership, for every revenue received without any cap.
[tex]\to (300,000 \times 0.9235) \times 2.9 \% \\\\ \to 277,050 \times 0.029 \\\\\to \$ \ 8034.45 \\[/tex]
Where income exceeds 200,000, and 0.9% of exceeding income exceeds additional medicare tax.
[tex]\to [(300,000 \times 0.9235) - 200,000] \times 0.9 \% \\\\\to [(277,050) - 200,000] \times 0.009 \\\\\to 277,050\times 0.009 \\\\\to 693.45[/tex]
Medicare tax and social insurance total:
[tex]\to 16,480 + 8,034 + 693.45 \\\\\to 25,207.45[/tex]
Think about the merchandise sold at Office Depot/OfficeMax and Staples, and list three to four types of merchandise that fall into extended problem solving, limited problem solving, and habitual decision making for college students. Explain how the categories of merchandise would change for each type of buying decision if the customer was the owner of a medium-sized business.
Answer:
The laptops and printers are the merchandise that fall into extended problem solving.
The stapler, punch machines and stamps are the limited problem solving.
The office stationary like pens, papers and pins are habitual decision making.
Explanation:
The extended problem solving is when there is purchase of a merchandise that involve greater analysis before making a buy decision as they are expensive. The limited problem solving merchandise require lesser analysis of buy decision and a person can buy the product after inquiring from the shop. The habitual decision making is when a person buys a thing instantly before analyzing its benefits versus cost.
All of the following would be reported on the balance sheet as a current asset except a.factory overhead b.finished goods inventory c.work in process inventory d.materials inventory
Answer: Factory Overhead
Explanation:
Current assets are the assets that a particular company is expected to either use or sell for a current fiscal year during business operations. Examples of current assets are cash, stock Inventory, marketable securities, cash equivalents, accounts receivable, work in process Inventory etc.
Factory overhead isn't reported on the balance sheet as a current asset.
Flexible Budgeting At the beginning of the period, the Fabricating Department budgeted direct labor of $92,500 and equipment depreciation of $41,000 for 3,700 hours of production. The department actually completed 4,400 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.
Answer:
$151,000
Explanation:
Fabricating department budgeted direct labor = $92,500
Budgeted labor rate = Budgeted direct labor ÷ Hours of production
= $92,500 ÷ 3,700
= $25 per hour
Direct labor = Completed hours of production × Budgeted labor rate
= 4,400 × $25
= $110,000
Budget for the fabricating department at 4,400 hours of production
Budgeted cost = Direct labor cost + Equipment depreciation
= $110,000 + $41,000
= $151,000
Assume that a company's cost formula for its materials and supplies is $2,040 per month plus $9 per vehicle. For the month of August, the company planned for activity of 99 vehicles, but the actual level of activity was 59 vehicles. The actual materials and supplies for the month was $2,890. The materials and supplies in the planning budget for August would be closest to:
Answer:
$2,931
Explanation:
Actual Planning Budget
Materials $2,890 $2,040
Vehicle $531 (59*$9) $891 (99*$9)
Total $3,421 $2,931
Hence, the total amount of materials and supplies in the planning budget for August is $2,931
What salvage value of the Touchet Industries drill press will make the two alternatives equivalent, assuming an interest rate of 10%
Answer:
the numbers are missing, so I looked for a similar question and found the attached image:
Wallula machine
cash flow year 0 = -$30,000
cash flow year 1 = -$1,500
cash flow year 2 = -$1,500
cash flow year 3 = -$1,500
cash flow year 4 = -$1,500
cash flow year 5 = -$1,500
cash flow year 6 = $3,500
the NPV = -$33,710.52
Touchet machine
cash flow year 0 = -$36,000
cash flow year 1 = -$2,000
cash flow year 2 = -$2,000
cash flow year 3 = -$2,000
cash flow year 4 = -$2,000
cash flow year 5 = -$2,000
cash flow year 6 = -$2,000 + ?
NPV must equal -$35,605.91
the present value of the initial outlay and the first 5 cash flows is -$43,581.57
-$35,605.91 = -$43,581.57 - $2,000/1.1⁶ + ?/1.1⁶
-$35,605.91 = -$44,710.52 + ?/1.1⁶
$9,104.61 = ?/1.1⁶
$9,104.61 x /1.1⁶ = ?
? = $16,129.37
the salvage value of Touchet's machine must be $16,129.37 ≈ $16,129
The accounts receivable turnover is computed as __________ divided by __________. sales; accounts receivable sales; average accounts receivable sales; net income accounts receivable; net income 2. Financial data for Greene Company follows: Sales $825,000 Accounts receivable: Beginning of year 75,000 End of year 87,000 Net income 1,500,000 What is Greene Company's accounts receivable turnover
Answer and Explanation:
The computation is shown below:
As we know that
Account receivable turnover is
= Sales ÷ average account receivable
So, sales; average accounts receivable is considered
2. Now the account receivable turnover ratio is
Average receivable is
= ($75,000 + $87,000) ÷ 2
= $81,000
So,
Account receivable turnover ratio is
= $825,000 ÷ $81,000
= 10.20 times
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.
Suppose total disposable income in Country X rises by $500 billion while total consumption rises by $50 billion. What would be the slope of the consumption function for this nation
Answer:
b. 0.1
Explanation:
Options include "a. 0.5 b. 0.1 c. 1 d. 0.25 e. 0.4"
Consumption = C+Mpc * Yd
When C is autonomous consumption
Yd is disposable income.
Hence, if Yd increases by 500, consumption will increases by 500*Mpc =50 So, Mpc =50/500
Mpc = 0.1
You plan to invest in bonds that pay 6.0%, compounded annually. If you invest $10,000 today, how many years will it take for your investment to grow to $15,000
Answer:
n= 6.96 years
Explanation:
Giving the following information:
Present Value= $10,000
Future Value= $15,000
Interest rate= 6%
To calculate the number of years required, we need to use the following formula:
n= ln(FV/PV) / ln(1+i)
n= ln(15,000/10,000) / ln(1.06)
n= 6.96 years
If the Trump government decides to take an aggressive action by imposing harsh tariffs on Chinese imports, what is the motivation behind
Answer:
Even though most Economists are against tariffs, they are usually imposed for several reasons such as;
To increase Net Exports - The Trump Government might be aiming to reduce the imports that the US gets from China which will enable the country's net exports to grow because net exports are calculated by subtracting imports from exports. To protect local industries - The Trump Government has frequently accused China of selling goods at such low prices that American firms cannot compete. Tariffs would increase the prices of Chinese goods to enable that competition. To improve the Current Account - The current account of the US records both imports and exports. If tariffs reduce imports, the current account would be better off.Which of the following are the two basic categories of primary research? a. Consumer marketing research and business marketing research b. Qualitative research and quantitative research c. Observation research and survey research d. People marketing research and idea marketing research 4 points g
Answer:
c. Observation research and survey research
Explanation:
The primary research is the first-hand information with an experiment and events. The primary research is more complex and needs depth exploration. Focuses on surveys, interviews, observations, and experiences with the key disadvantages of the cost involved. Such as observing and interacting with the situation and making notes.uppose an investor earned a semiannual yield of 6.4 percent on a bond paying coupons twice a year. What is the effective annual yield (EAY) on this investment
Answer:
Effective annual yield is 0.132
Explanation:
The computation of the effective annual yield (EAY) is shown below:
Effective annual yield is
= (1 + periodic interest rate)^m – 1
= (1 + 0.064)^2 - 1
= 0.132
hence, the effective annual yield (EAY) is 0.132
And, the same is to be considered
We simply applied the above formula so that the correct answer could come