Answer:
$28.57
Explanation:
Current price = D1/(Required return-Growth rate)
D1 (Next dividend) = $2
Required return = 10% = 0.1
Growth rate = 3% = 0.03
Current price = $2/(0.1-0.03)
Current price = $2 / 0.07
Current price = $28.57143
Current price = $28.57
Hence, i will be willing to pay $28.57 for a share of Merck stock.
BMW’s vehicle-assembly facility in South Carolina represents a direct investment inside the United States by the German manufacturer. This facility is an example of:
Answer:
Foreign direct investment.
Explanation:
BMW’s vehicle-assembly facility in South Carolina represents a direct investment inside the United States by the German manufacturer. This facility is an example of foreign direct investment.
A foreign direct investment (FDI) can be defined as an investment made by an individual or business entity (investor) into an investment market (industry) located in another country. The investor here, shares a different country of origin from the country where his investment is located.
In a foreign direct investment (FDI), an investor must establish his business, factory and operations in a foreign country or acquire assets in a business that is being operated in a foreign country.
Additionally, foreign direct investment (FDI) are categorized into three (3) main types and these are;
1. Vertical FDI: it involves establishing a different business that is however similar to the main business owned by the investor.
2. Horizontal FDI: it involves establishing the same type of business in a foreign country as owned in the investor's country.
3. Conglomerate FDI: it involves establishing a business that is completely different in another (foreign) country.
It is important that marketers be able to identify which strategy a competitor is using so that they better understand how to position their own products and services. You will see a list of recent or potential strategic decisions made by large firms, and your job is to identify which type of strategy was used in each example.
While there are a variety of strategies across industries, most fall under four basic categories.
1. Market penetration strategies emphasize selling more existing products and services to existing customers.
2. Product development strategies involve creating new goods or services for existing markets.
3. Market development strategies focus on selling existing products or services to new customers. The targeted new customers could be a different gender, age group, or international market.
4. Finally, diversification strategies involve offering new products that are unrelated to the existing products produced by the organization.
Select the most appropriate category of emotional intelligence for below mention behaviors.
i. Arm and Hammer selling baking soda for new purposes.
a. Market penetration
b. Product development
c. Market development
d. Diversification
ii. Apple opening mini-stores within Target
a. Market penetration
b. Product development
c. Market development
d. Diversification
iii. Disney purchasing ESPN
a. Market penetration
b. Product development
c. Market development
d. Diversification
Answer:
1. Market development
2. Market penetration
3. Diversification
Explanation:
we have already been given a definition of these concepts from question
1.
for Ann and hammer: it is market development because they are trying to create a product for new purposes
2.
for apple: since they are opening mini stores within target they are trying to have an expansion approach where more products and services would be sold to their customers.
3.
for disney: they are diversifying into a new product entirely. ESPN is a well known channel for sporting related activities.
Crow earned $585.15 during the week ended March 1, 20--. Prior to payday, Crow had cumulative gross earnings of $4,733.20. Round your answers to the nearest cent. a. The amount of OASDI taxes to withhold from Crow's pay is $ . b. The amount of HI taxes to withhold from Crow's pay is
Answer:
A. $36.28
B. $8.48
Explanation:
a. Calculation for the amount of OASDI taxes to withhold from Crow's pay
OASDI taxes is 6.2%
Hence,
OASDI taxes to withhold = 585.15*0.62
OASDI taxes to withhold = $36.28
Therefore the OASDI taxes to withhold from Crow's pay is $36.28
b. Calculation for the amount of HI taxes to withhold from Crow's pay
HI taxes is 1.45%
Hence,
HI taxes to withhold =585.15*0.0145
HI taxes to withhold=$8.48
Therefore HI taxes to withhold from Crow's pay is $8.48
definition of observant in entrepreneur characteristics
Answer:
In Entrepreneur characteristics, observant refers to the ability to quickly notice a certain pattern or unusual situation.
This skill is important because of these two following reasons:
- It helped the entrepreneur notice an existing trend. This trend could represent the things that are currently favored by the consumers in a certain market. Understanding trend will help you creating a product that can fit into that trend.
- It also help the entrepreneur notice the problems that occur internally. For example, being observant will help the entrepreneur notice the negative emotion that the employees experience when facing a certain problem. After noticing this, the entrepreneur could develop some sort of strategy to lift their spirit.
QUESTION 2 / 10
Which of the following is the BEST reason to use cash for making purchases?
A. Keeping track of how much you have spent is simple.
B. Splitting bills with friends is easier.
C. Getting more cash from an ATM machine is easy to do.
D. Knowing what you have spent your money on is
simple.
The best reason to use cash for making purchases is keeping track of how much you have spent is simple. Thus, option A is correct.
What is purchases?Purchasing is the process through which a company or organization acquires products or services in order to achieve its objectives. Although numerous organizations seek to establish standards in the purchasing process, practices can vary widely amongst firms.
Cash makes budgeting and sticking to it simpler. When you pay with cash that you've planned for purchases, it's easy to keep track of where your money is going. It's also eye-opening and keeps you grounded in terms of how much money is going out vs coming in from week to week or month to month.
The main incentive to utilize cash for purchases is that it is simple to keep account of the amount you have spent. As a result, option A is correct.
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The revenues budget identifies: a. expected cash flows for each product b. actual sales from last year for each product c. the expected level of sales for the company d. the variance of sales from actual for each product
Answer:
c. the expected level of sales for the company
Explanation:
Revenue/Sales Budget is the first budget to be prepared by most companies because most businesses are sales led.
This Budget shows, the expected level of sales for the company.
A Corporation has two divisions: the South Division and the West Division. The corporation's net operating income is $26,900. The South Division's divisional segment margin is $42,800 and the West Division's divisional segment margin is $29,900. What is the amount of the common fixed expense not traceable to the individual divisions
Answer:
$45,800
Explanation:
Common fixed expense not traceable to the individual divisions = South division's divisional segment margin + west division's divisional segment - corporation's net operating income
Common fixed expense not traceable to the individual divisions = $42,800 + $29,900 - $26,900
Common fixed expense not traceable to the individual divisions = $45,800
The December 31, 2018, adjusted trial balance for Fightin' Blue Hens Corporation is presented below.
Accounts Debit Credit
Cash $12,000
Accounts Receivable 150,000
Prepaid Rent 6,000
Supplies 30,000
Equipment 400,000
Accumulated Depreciation $135,000
Accounts Payable 12,000
Salaries Payable 11,000
Interest Payable 5,000
Notes Payable (due in two years) 40,000
Common Stock 300,000
Retained Earnings 60,000
Service Revenue 500,000
Salaries Expense 400,000
Rent Expense 20,000
Depreciation Expense 40,000
Interest Expense 5,000
Totals $1,063,000 $1,063,000
Accounts Debit Credit
Service Revenue 500,000
Salaries Expense 400,000
Rent Expense 20,000
Depreciation Expense 40,000
Interest Expense 5,000
Total $1,063,000 $1,063,000
Required:
1. Prepare an income statement for the year ended December 31, 2021.
2. Prepare a statement of stockholders' equity for the year ended December 31, 2021, assuming no common stock was issued during 2021.
3. Prepare a classified balance sheet as of December 31, 2021.
Answer:
Please see answers below
Explanation:
1. Prepare an income statement for the year ended, December 31, 2021
Fightin' Blue Hems Corporation, Income statement for the year ended, December 31, 2021.
Details
$
Service revenue
500,000
Salaries expense
400,000)
Rent expense
20,000)
Depreciation expense
40,000)
Interest expense
5,000)
Earnings for the year
35,000
2. Prepare a statement of stockholder's equity for the year ended, 31, December, 2021
Fightin' Blue Hens Corporation statement of stockholder equity for the year ended , December 31, 2021.
Details
$
Common stock
300,000
Retained earnings
60,000
Earnings for the year
35,000
Stockholder equity
395,000
3. Prepare a classified balance sheet as at 31, December
Fightin' Blue Hens Corporation, classified balance sheet for the hear ends, December 31, 2021.
Details
$
Fixed assets
Equipment
400,000
Accumulated depreciation
135,000
Net fixed assets
265,000
Current assets
Cash
12,000
Accounts receivables
150,000
Prepaid rent
6,000
Supplies
30,000
Total current assets
198,000
Current liabilities
Accounts payable
($12,000)
Salaries payable
(11,000)
Interest payable
(5,000)
Working capital
170,000
Long term liabilities
Notes payable (due in two years)
(40,000)
Net total assets
395,000
Financed by;
Common stock
300,000
Retained earnings
60,000
Earnings for the year
35,000
Stockholder equity
395,000
So you want to finance a car for $4,840. Let’s say we offer you a 4.5% interest rate on a 2-year loan and 6% on a 5-year loan. Enter this info into the calculator to see your monthly and total cost by loan term.
Financing Amount
$4840
Correct
Interest Rate on 2-Year Loan
Interest Rate on 5-Year Loan
Answer:
Interest Rate on 2-Year Loan...$435.6
Interest Rate on 5-Year Loan...$1,452
Explanation:
The formula for calculating simple interest is as follows.
I = P x R x T,
where I = interest
P= Principal
R= interest rate
T= time
For the loan at 4.5 percent for 2 years, the interest will be
= $4,840 x 4.5/100 x 2
= $4,840 x 0.045 x 2
= $435.6
Total cost of the loan will principal plus interest
=$435.6 + $4,840
=$5,275.6
Monthly loan cost
= $5,275.6/24
=$219.81
Total loan cost..$5,275.6
Monthly loan cost ...$219.81
For the Loan at 6 percent for 5 years, the interest will be
= $4,840 x 6/100 x 5
= $4,840 x 0.06 x 5
=$1,452
Total cost of the loan will be principal plus interest
=$ 4,840 + $1,452
=$6,292
Monthly costs will be
=$6,292/60
=$104.87
Total loan cost... $6,292
Monthly loan costs... $104.87
The following inventory valuation errors have been discovered for Knox Corporation:
The 2015 year-end inventory was overstated by $23,000
The 2016 year-end inventory was understated by $61,000
The 2017 year-end inventory was understated by $17,000
The reported income before taxes for Knox was:
Year: Income before Taxes:
2015 $138,000
2016 $254,000
2017 $168,000
Required:
Compute what income before taxes for 2015, 2016, and 2017 should have been after correcting for the errors.
Answer:
Income +/- inventory adjustment
2015: 138,000 - 23,000 = 115,000
2016: 254,000 + 61,000 = 315,000
2017: 168,000 + 17,000 = 185,000
Explanation:
Inventory Identity:
Beginning + Purchases = Ending + COGS
As the mistake is on the right side it compensates by the other component which is COGS
When the inventory is overstated this means COGS is understated.
We didn't record the cost of good sold thefore our gross profit is higher making the net income higher.
When the inventory is understated this means COGS is overstated.
We record more cost of goods sold thefore our gross profit is lower making the net income fewer as well.
The number of people or subordinates that a manager effectively controls and directs is called the manager's span of:
Answer: Span of Control
Explanation:
A Manager's span of control refers to all the subordinates that report to that manager. The manager therefore effectively controls and directs them and as such is answerable for them.
Spans of Control are different depending on the type of company it is. A manager with a lot of people in their span of control is said to have a Wide span of control and the reverse is a Narrow Span of control.
A very important part of management is determining the largest number of subordinates that can be in a span of control without overwhelming the manager.
Blago Wholesale Company began operations on January 1, 2017, and uses the average cost method in costing its inventory. Management is contemplating a change to the FIFO method in 2018 and is interested in determining how such a change will affect net income. Accordingly, the following information has been developed:
2017 2018
Final inventory:
Average cost $150,000 $255,000
FIFO 160,000 270,000
Condensed income statements for Blago Wholesale appear below:
2017 2018
Sales $1,000,000 $1,200,000
Cost of goods sold 600,000 720,000
Gross profit 400,000 480,000
Selling, general, and administrative 250,000 275,000
Net income $150,000 $205,000
Required:
Based on this information, what would 2018 net income be after the change to the FIFO method?
Answer:
Blago Wholesale Company
New Net income for 2018 = $220,000
Explanation:
Data and Calculations:
Final inventory: 2017 2018
Average cost $150,000 $255,000
FIFO 160,000 270,000
Difference $10,000 $15,000
2017 2018
Sales $1,000,000 $1,200,000
Cost of goods sold 600,000 720,000
Gross profit 400,000 480,000
Selling, general, and
administrative 250,000 275,000
Net income $150,000 $205,000
2018 Net Income after the change to the FIFO method:
Cost of goods sold (weighted average) 720,000
less adjustment for change of method 15,000
Adjusted cost of goods sold 705,000
Income Statement after the change
Sales $1,200,000
Cost of goods sold 705,000
Gross profit 495,000
Selling, general, and
administrative 275,000
Net income $220,000
Mattola Company is giving each of its employees a holiday bonus of $200 on December 13, 20-- (a nonpayday). The company wants each employee's check to be $200. The supplemental tax percent is used.
Nobody has capped for OASDI prior to the bonus check.
a. What will be the gross amount of each bonus if each employee pays a state income tax of 2.8% (besides the other payroll taxes)? You may need to add one penny to the gross so that net bonus exactly equals $200. Round your calculations and final answers to the nearest cent.
b. What would the net amount of each bonus check be if the company did not gross-up the bonus? Round your intermediary calculations to the nearest cent.
Answer:
a. Gross amount of each bonus = $309.84
b. Net amount of each bonus = $129.10
Explanation:
Since the supplemental tax percent is used, the following are the relevant tax rates to be applied in the calculations:
STP = Supplemental tax percent = 25%
FICASO = Federal Insurance Contributions Act (FICA) social security tax = 6.2%
FICAM = Federal Insurance Contributions Act (FICA) Medicare tax = 1.45%.
SIT = State income tax = 2.8%
We therefore proceed as follows:
a. What will be the gross amount of each bonus if each employee pays a state income tax of 2.8% (besides the other payroll taxes)? You may need to add one penny to the gross so that net bonus exactly equals $200. Round your calculations and final answers to the nearest cent.
Given the tax rates above, the following formula is used to calculate the gross amount of each bonus:
Gross amount of each bonus = Holiday bonus amount / (100% - STP - FICASO - FICAM - SIT) …… (1)
Substituting the relevant values into equation (1), we have:
Gross amount of each bonus = $200/ (100% - 25% - 6.20% - 1.45% - 2.8%)
Gross amount of each bonus = $200 / 64.55%
Gross amount of each bonus = $309.837335398916
To the nearest cent which implies to two decimal places, we have:
Gross amount of each bonus = $309.84
b. What would the net amount of each bonus check be if the company did not gross-up the bonus? Round your intermediary calculations to the nearest cent.
The net amount of each bonus can be calculated using the following formula:
Net amount of each bonus = Holiday bonus amount * (100% - STP - FICASO - FICAM - SIT) …… (2)
Substituting the relevant values into equation (2), we have:
Net amount of each bonus = $200 * (100% - 25% - 6.20% - 1.45% - 2.8%)
Net amount of each bonus = $200 * 64.55%
Net amount of each bonus = $129.10
Chance company had two operating divisions, one manufacturing farm equipment and other office supplies. Both divisions are considered separate components as defined by generally accepted accounting principles. The farm equipment component had been unprofitable, and on Sept. 1, 2016, the company adopted a plan to sell the assets of the division.
The actual sale was completed on Dec. 15, 2016, at the price of $600,000. The book value of the division's assets was $1,000,000, resulting in a before-tax loss of $400,000 on the sale. The division incurred a before-tax operating loss from operations of $130,000 from the beginning of the year through Dec. 15. The income tax rate is 40%. Chances after-tax income from its continuing operations is $350,000.
Required:
Prepare an income statement for 2016 beginning with income from continuing operations. Include appropriate EPS disclosures assuming that 100,000 shares of common stock were outstanding throughout the year.
Answer:
-21,000
Explanation:
We can calculate the net income by Adding/deducting the gain/loss on the discontinued operations from the gain/loss of the continuing operations.
INCOME STATEMENT
Income from continuing Operations $350,000
Discontinued Operations
Loss from discontinued operations(w) -530,000
Income tax benefit $159,000
(400,000+130,000) x 30%
Net Income -21,000
Earning per share
Continuing Operations $3.5
(350,000/100,000)
Discontinued Operations -$5.3
(-530,000/100,000)
Net Income -$1.8
Working
Sale value of the segment $600,000
Book value of the segment ($1,000,000)
loss on sale of segment -$400,000
Loss from the Operations of the segment -$130,000
Loss on discontinued operation -$530,000
The given statements pertain to aggregate supply and aggregate demand. Label each statement as being either true or false.
Statement 1: An increase in the cost of energy affects both aggregate supply and aggregate demand.
A. True
B. False
Statement 2: One of the factors that increase aggregate demand is the consumption of more imports.
A. True
B. False
Statement 3: If the value of people's stock portfolios increases or if peoples houses appreciate in value, then this very easily could lead to an increase in aggregated demand.
A. True
B. False
Answer:
Statement 1: An increase in the cost of energy affects both aggregate supply and aggregate demand.
A. TrueAn increase in energy costs reduces both aggregate supply and demand.
Statement 2: One of the factors that increase aggregate demand is the consumption of more imports.
B. FalseIf net exports decrease (exports - imports), then the aggregate demand curve will shift to the left, which means it will decrease.
Statement 3: If the value of people's stock portfolios increases or if peoples houses appreciate in value, then this very easily could lead to an increase in aggregated demand.
A. TrueThis would lead to an increase in the net worth of households, which generally leads to higher spending.
Alice and Bob entered into a forward contract some time ago. Alice has the long position, while Bob has the short position. The forward contract will mature in three months and has a delivery price of $40. The current forward price for the contract is $42. The three-month risk-free interest rate (with continuous compounding) is 8%. What is the value Bob's position?
Answer:
$ - 1.96
Explanation:
After three months, Alice (long the contract) can buy the underlying by paying the delivery price of $40 which is $2 less than $42 the long position would have to pay if the contract was entered today.
DATA
Delivery price = $40
The three-month risk-free interest rate (with continuous compounding) =8%.
The current forward price = $42
Solution
So based on the present situation, Alice would be in $2 profit at the end of 3 months and Bob would be in $2 loss
Present value of Bob's loss (with continuous compounding) = 2\times e^{-0.08\times 0.25}
Present value of Bob's loss (with continuous compounding) = $1.96
The value of Bob's position is $ - 1.96
Which best describes the role that government and business play in investments?
O They both use taxes to support a country's growth.
They both invest money to earn a profit.
They both receive capital to use for growth.
They both act as angel investors for start-ups.
Answer:
They both receive capital to use for growth.
Explanation:
The government received the capital in the form of tax that being paid by the citizens. After collecting the tax income, the government allocated it to make a couple of investments such as building the country's infrastructure, providing aid for people to pursue education, and investing in scientific research/development.
Business on the other hand could receive their capital from either reallocating their profit or receiving capital injection from the investors. They use the capital for growth by reinvesting it to increase the scope of their business operation or putting it under investment accounts.
Statement that best describes the role that government and business play in investments is They both receive capital to use for growth
What is an investment?Investment can be regarded as the input that is been put into some business in order to generate revenue.
however, this also applies to the government because they use the public funds as investment for the betterment of the economy and the public.
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Question 5 of 10
Why do business often add fees to their invoices?
O A. To help pay for business expenses
B. To attract new customers
C. To reward customers' for their loyalty
D. To make more profit than their competitors
Answer: I think it's A
Explanation:
Answer:
Its A!
Explanation:
Just took the quiz
In 1998, the Russian government defaulted on its bonds. According to the open-economy macroeconomic model, this should have
Answer:
An increase in the net export and Russian interest rate.
Explanation: An open economy is an economy where all players which includes traders, investors and other stakeholders in the economy both within and outside the economy freely conduct their businesses and are controlled by market forces with minimal interference by Government agencies.
According to the open-economy macroeconomic model with the defaulting by the Russian government in 1998 will definitely lead to an increase in net export and an increase in Russian Interest rate.
Key figures for Apple and Google follow.
$ millions Apple Google
Cash and equivalents. . . . . . . $20,484 $12,918
Accounts receivable, net. . . . . 15,754 14,137
Inventories. . . . . . . . . . . . 2,132 268
Retained earnings. . . . . . . . . 96,364 105,131
Cost of sales. . . . . . . . . . . 131,376 35,138
Revenues. . . . . . . . . . . . . . 215,639 90,272
Total assets. . . . . . . . . . . . 321,686 167,497
Required:
a. Compute common-size percents for each of the companies using the data provided.
b. If Google decided to pay a dividend, would retained earnings as a percent of total assets increase or decrease
Answer:
a. Common-size analysis Income statement figures expresses them as a percentage of Sales while for Balance sheet figures, entries are expressed as a percentage of Total Assets.
Cash and Cash Equivalents
Apple Google
= 20,484/321,686 = 6.37 % = 12,918/167,497 = 7.71%
Accounts Receivables
Apple Google
= 15,754/321,686 = 4.90 % = 14,137/167,497 = 8.44%
Inventories
Apple Google
= 2,132/321,686 = 0.66 % = 268/167,497 = 0.16%
Retained Earnings
Apple Google
= 96,364/321,686 = 29.96 % = 105,131/167,497 = 62.77%
Cost of Sales
Apple Google
= 131,376/215,639 = 60.92 % = 35,138/90,272 = 38.92%
Apple Google
Cash and equivalents 6.37% 7.71%
Accounts receivable, net 4.90% 8.44%
Inventories 0.66% 0.16%
Retained Earnings 29.96% 62.77%
Cost of Sales 60.92% 38.92%
Revenues 100% 100%
Total Assets 100% 100%
b. Dividends are paid from Retained Earnings so Retained earnings as a percent of total assets WILL DECREASE.
Broca Corporation has a current ratio of 2.5. Which of the following transactions will increase Broca's current ratio? Select one: a. the purchase of inventory for cash. b. the collection of an account receivable. c. the payment of an account payable. d. none of the above.
Answer:
b. the collection of an account receivable
Explanation:
The formula to compute the current ratio is shown below:
As we know that
Current ratio = Current assets ÷ Current liabilities
If the current ratio is 2.5 that means the current assets is higher than the current ratio
As per the given options, the option b is correct and hence the same is to be considered
The transaction that will increase Broca's current ratio is d. none of the above.
The current ratio is not increased by the purchase of inventory for cash because this transaction has no effect on the current assets. The collection of an account receivable is not going to increase the current ratio for the same reason above (no effect on the current assets).
The payment of an account payable reduces the current assets and current liabilities by the same amount and will not affect the current ratio.
Thus, the transaction that will increase the current ratio is d.
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Adelberg Corporation makes two products: Product A and Product B. Annual production and sales are 1,500 units of Product A and 1,500 units of Product B. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.4 direct labor-hours per unit and Product B requires 0.2 direct labor-hours per unit. The total estimated overhead for next period is $87,630. The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools--Activity 1, Activity 2, and General Factory--with estimated overhead costs and expected activity as follows:
Expected Activity
Activity Cost Pool Estimated Overhead Costs Product A Product B Total
Activity 1 $ 41,400 1,000 500 1,500
Activity 2 15,720 800 400 1,200
General Factory 30,510 600 300 900
Total $ 87,630
(Note: The General Factory activity cost pool's costs are allocated on the basis of direct labor-hours.)
The overhead cost per unit of Product B under the activity-based costing system is closest to:_________
a. $42.90
b. $9.10
c. $21.30
d. $63.92
Answer:
Results are below.
Explanation:
First, we need to calculate the predetermined overhead rate for each activity:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Activity 1= 41,400/1,500= $27.6 per unit of activity
Activity 2= 15,720/1,200= $13.1 per unit of activity
General Factory= 30,510/900= $33.9 per direct labor hour
Now, we can allocate overhead to product B:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Activity 1= 27.6*500= $13,800
Activity 2= 13.1*400= $5,240
General Factory= 33.9*300= $10,170
Total allocated overhead= $29,210
Unitary allocated overhead= 29,210/1,500= $19.47
The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021:
Penske Stanza
Revenues $(842,000 ) $(568,000 )
Cost of goods sold 299,700 142,000
Depreciation expense 207,000 304,000
Investment income Not given 0
Dividends declared 80,000 60,000
Retained earnings, 1/1/21 (668,000 ) (222,000 )
Current assets 572,000 566,000
Copyrights 1,076,000 449,500
Royalty agreements 604,000 1,180,000
Investment in Stanza Not given 0
Liabilities (546,000 ) (1,631,500 )
Common stock (600,000 )($20 par) (200,000 ) ($10 par)
Additional paid-in capital 150,000 80,000
On January 1, 2013, Penske acquired all of Stanza's outstanding stock for $680,000 fair value in cash and common stock. Penske also paid $10,000 in stock issuance costs. At the date of acquisition copyrights (with a six-year remaining life) have a $440,000 book value but a fair value of $560,000.
a. As of December 31,2013, what is the consolidated copyrights balance?
b. For the year ending December 31,2013, what is consolidated net income?
c. As of December 31,2013, what is the consolidated retained earnings balance?
d. As of December 31,2013, what is the consolidated balance to be reported for goodwill?
Answer:
a. $1,625,500
b. $437,300
c. $1,025,300
d. $58,000
Explanation:
a. As of 31, December 2013, what is the consolidated copy rights balance
b. For the year ending, December 31, 2013, what is consolidated net income
c. As of December 31, 2013, what is the consolidates retained earnings balance
d. As of December 31, 2013 what is the consolidated balance to be reported for Goodwill.
Please find attached detailed explanations to the above questions and answers.
Thirteen students entered the business program at Sante Fe College 2 years ago. The following table indicates what each student scored on the high school SAT math exam and their grade-point averages (GPAs) after students were in the Sante Fe program for 2 years.
Student A B C D E F G
SAT Score 421 375 585 693 608 392 418
GPA 2.93 2.87 3.03 3.42 3.66 2.91 2.12
Student H I J K L M
SAT Score 484 725 506 613 706 366
GPA 2.50 3.24 1.97 2.73 3.88 1.58
The least-squares regression equation that shows the best relationship between GPA and the SAT score is:________ (round your responses to four decimal places)
Answer:
ŷ = 0.0035X + 1.0030
Explanation:
Given the data :
Student A B C D E F G H I J K L M
SAT Score: 421 375 585 693 608 392 418 484 725 506 613 706 366
GPA: 2.93 2.87 3.03 3.42 3.66 2.91 2.12 2.50 3.24 1.97 2.73 3.88 1.58
We can obtain the Least square regression calculator, we can obtain the least square regression equation in the Format :
y = mx + c
Where ; m = gradient / slope
x = predictor variable ; c = intercept
y = Independent variable.
The model equation produced by the calculator is :
ŷ = 0.0035X + 1.0030
y predicted variable ; x = explanatory variable
0.0035 = slope or gradient ; 1.0030 = intercept
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https://brainly.com/question/2264831
What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 8% of par, and a current market price of (a) $62, (b) $81, (c) $97, and (d) $136
Answer and Explanation:
The computation of the risk premium is shown below:-
Rate of return = Dividend ÷ Current market price of preferred stock
The dividend should be
= $100 × 8%
= $8
a Rate of return = $8 ÷ $62
= 12.90%
b. Rate of return = $8 ÷ $81
= 9.88%
c. Rate of return = $8 ÷ $97
= 8.25%
d. Rate of return = $8 ÷ $136
= 5.88%
Wilson Products uses standard costing. It allocates manufacturing overhead (both variable and fixed) to products on the basis of standard direct manufacturing labor-hours (DLH). Wilson Products develops its manufacturing overhead rate from the current annual budget. The manufacturing overhead budget for 2014 is based on budgeted output of 672,000 units, requiring 3,360,000 DLH. The company is able to schedule production uniformly throughout the year.
A total of 72,000 output units requiring 321,000 DLH was produced during May 2014. Manufacturing overhead (MOH) costs incurred for May amounted to $ 355,800. The actual costs, compared with the annual budget and 1/12 of the annual budget, are as follows:
Calculate the following amounts for Wilson Products for May 2014:
Total Amount Per Output Unit Per DLH Input Unit Monthly MOH Budget May 2017 Actual MOH Costs for May 2017
Variable MOH
Indirect manufacturing labor $1,008,000 $1.50 $0.30 $84,000 $84,000
Supplies 672,000 1.00 0.2 56,000 117,000
Fixed MOH
Supervision 571,200 0.85 0.17 47,600 41,000
Utilities 369,600 0.55 0.11 30,800 55,000
Depreciation 705,600 1.05 0.21 58,800 88,800
Total $33,26,400 $4.95 $0.99 $277,200 $355,800
Required:
a. Total manufacturing overhead costs allocated.
b. Variable manufacturing overhead spending variance.
c. Fixed manufacturing overhead spending variance.
d. Variable manufacturing overhead efficiency variance.
e. Production-volume variance Be sure to identify each variance as favorable (F) or unfavorable(U).
Answer:
Please see attached solution
Explanation:
a. Total manufacturing overhead costs allocated $356,400
b. Variable manufacturing overhead spending variance $40,500U
c. Fixed manufacturing overhead spending variance $17,600U
d. Variable manufacturing overhead efficiency variance $19,500F
e. Production volume variance $39,200F
Please find attached detailed solution to the above questions
Lemon Corporation generated $324,600 of income from ordinary business operations. It also sold several assets during the year. Compute Lemon’s taxable income under each of the following alternative assumptions about the tax consequences of the asset sales.
a. Lemon recognized a $5,500 capital gain and a $7,400 net Section 1231 loss.
b. Lemon recognized a $6,500 capital loss and a $4,700 net Section 1231 gain.
c. Lemon recognized a $2,500 capital gain, a $3,900 capital loss, and a $3,000 net Section 1231 gain.
d.Lemon recognized $4,000 of depreciation recapture, a $2,000 Section 1231 gain, and a $4,200 Section 1231 loss.
Answer:
a. Lemon’s taxable income = $322,700
b. Lemon’s taxable income = $324,600
c. Lemon’s taxable income = $326,200
d. Lemon’s taxable income = $326,400
Explanation:
Before the questions are answered, the provisions of section 1231 of the Internal Revenue Service (IRS) rules are quoted as follows:
- If you have a net section 1231 loss, it is an ordinary loss.
- If you have a net section 1231 gain, it is ordinary income up to the amount of your unrecaptured section 1231 losses from previous years. The rest, if any, is a long-term capital gain.
Therefore, net section 1231 loss which is an ordinary loss is deducted from ordinary business operations to obtain taxable income.
Also, we describe the following:
Taxable income can be described as the amount of income that is employed to calculated the amount of tax that is payable to the government by an individual or a company in a particular tax year. It is obtained after making all required additions and allowable deductions.
Capital gain can be described as an increase in the value of a capital asset which is realized when the asset is sold. For tax purposes, capital gain is added to the income from ordinary business operations to obtain taxable income.
Capital loss can be described as a decrease in the value of a capital asset which is recognised when the asset is sold. For tax purposes, capital loss is deducted from the income from ordinary business operations to obtain taxable income.
We therefore proceed as follows:
a. Lemon recognized a $5,500 capital gain and a $7,400 net Section 1231 loss.
From the question, we have the following:
Income from ordinary business operations = $324,600
Capital gain recognised = $5,500
Net Section 1231 loss recognised = $7,400
Based on the explanation provided above, Lemon’s taxable income under this scenario is therefore calculated as follows:
Lemon’s taxable income = Income from ordinary business operations + Capital gain recognised - Net Section 1231 loss recognised = $324,600 + $5,500 - $7,400 = $322,700
b. Lemon recognized a $6,500 capital loss and a $4,700 net Section 1231 gain.
From the question, there is nothing related past five years stated and it is therefore assumed that there is no net section 1231 loss in the past five years.
As result, the total of $4,700 net Section 1231 gain is regarded as a capital gain and it is set-off against the $6,500 capital loss as follows to obtain the non-deductible expense as follows:
Non-deductible expense = $6,500 - $4,700 = $1,800
Since there is nothing deductible again, Lemon’s taxable income under this scenario is therefore equal to the income from ordinary business operations of $324,600. That is,
Lemon’s taxable income = $324,600
c. Lemon recognized a $2,500 capital gain, a $3,900 capital loss, and a $3,000 net Section 1231 gain.
Since no net section 1231 loss in the past five years is indicated here, the $3,000 net Section 1231 gain will be treated as a long-term capital gain.
Based on the provisions of section 1231 of the Internal Revenue Service (IRS) rules quoted above, non-deductible expense is calculated by deducting the $3,900 capital loss to the extent of the $2,500 capital gain as follows:
Non-deductible expense = $3,900 - $2,500 = $1,400
Since the $3,000 net Section 1231 gain has to be treated as a long-term capital gain, the $1,400 will be deducted from it obtain the net capital gain as follows:
Net capital gain = $3000 - $1400 = $1600
Lemon’s taxable income under this scenario is therefore calculated by adding the $1,600 net capital gain to the $324,600 income from ordinary business operations as follows:
Lemon’s taxable income = $324,600 + $1600 = $326,200
d. Lemon recognized $4,000 of depreciation recapture, a $2,000 Section 1231 gain, and a $4,200 Section 1231 loss.
We have the following:
Section 1231 loss = $4,200
Section 1231 gain = $2,000
Therefore, we have:
Net section 1231 loss = Section 1231 loss - Section 1231 gain = $4,200 - 2,000 = $2,200
This net section 1231 loss of $2,200 is therefore treated as ordinary loss as already stated in the provisions of section 1231 of the Internal Revenue Service (IRS) rules quoted above and deducted from the $324,600 income from ordinary business operations.
In addition, the depreciation recapture of $4,000 will be treated as ordinary income and it will be added to the $324,600 income from ordinary business operations.
Lemon’s taxable income under this scenario is therefore calculated as follows:
Lemon’s taxable income = Income from ordinary business operations + Depreciation recapture - Net section 1231 loss = $324,600 + $4,000 - $2,200 = $326,400
In 2009, an 1893 Morgan silver dollar sold for $6,450. Required: What was the rate of return on this investment? (Do not include the percent sign (%). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Answer: 7.86%
Explanation:
Using the Future Value formula;
= Amount * ( 1 + r)^n
The question is looking for the rate so making that the subject would be;
Assuming the car was $1 in 1893,
And n = 2009 - 1893 = 116 years
FV = Amount * ( 1 + r)^n
( 1 + r)^n = FV/ Amount
1 ^n + r^n = FV / Amount
r = n√((FV/ Amount) / 1^n)
r = n√(FV/ Amount)
r = 116√(6,450/ 1)
= 1.07855
Subtract 1 for the percentage;
= 1.07855 - 1
= 7.86%
The City of Waterville applied for a grant from the state government to build a pedestrian bridge over the river inside the city’s park. On May 1, the city was notified that it had been awarded a grant of up to $200,000 for the project. The state will provide reimbursement for allowable expenditures. On May 5, the special revenue fund entered into a short-term loan with the General Fund for $200,000 so it could start bridge construction. During the year, the special revenue fund expended $165,000 for allowable bridge construction costs, for which it submitted documentation to the state. Reimbursement was received from the state on December 13, 2017.
Required:
For the special revenue fund, provide the appropriate journal entries, if any, that would be made for the following.
a. May 5, 2017, loan from General Fund.
b. During FY 2017, bridge expenditures and submission of reimbursement documentation.
c. December 13, 2017, receipt of the grant reimbursement funds.
d. December 31, 2017, adjusting and closing entries.
Answer:
The City of Waterville
a. May 5:
Debit Cash $200,000
Credit InterFund Loan Payable $200,000
To record the loan from the general fund.
b. Debit Bridge Expenditure $165,000
Credit Vouchers Payable $165,000
To record the bridge expenditure for the year.
Debit Grant Receivable from State $165,000
Credit Grant Revenue $165,000
To record the submission of documentation for reimbursement.
c. Debit Cash $165,000
Credit Grant Receivable from State $165,000
To record the receipt of grant reimbursement.
d. Debit Revenues $165,000
Credit Expenditures $165,000
To record the revenues received and the expenditures.
Explanation:
The City of Waterville's application does not attract any journal entries. No journal entries are also made on May 1 when the city was notified of the grant award. Journal records are made from May 5 when the short-term loan arrangement was concluded with the General Fund.
Presented below are condensed financial statements adapted from those of two actual companies competing as the primary players in a specialty area of the food manufacturing and distribution industry. ($ in millions, except per share amounts.)
Balance Sheets
Metropolitan Republic
Assets $ 179.3 $ 37.1
Cash
Accounts receivable (net) 422.7 325.0
Short-term investments — 4.7
Inventories 466.4 635.2
Prepaid expenses and other current assets134.6 476.7
Current assets $ 1,203.0 1,478.7
Property, plant, and equipment (net) 2,608.2 2,064.6
Intangibles and other assets 210.3 464.7
Total assets $ 4,021.5 $4,008.0
Liabilities and Shareholders’ Equity
Accounts payable $ 467.9 691.2
Short-term notes 227.1 557.4
Accruals and other current liabilities 585.2 538.5
Current liabilities $ 1,280.2 1,787.1
Long-term debt 535.6 542.3
Deferred tax liability 384.6 610.7
Other long-term liabilities 104.0 95.1
Total liabilities $ 2,304.4 3,035.2
Common stock (par and additional paid-in capital)
144.9 335.0
Retained earnings 2,476.9 1,601.9
Less: treasury stock (904.7) (964.1)
Total liabilities and shareholders’ equity $
4,021.5 4,008.0
Income Statements
Net sales 5,698.0 7,768.2
Cost of goods sold (2,909.0) (4,481.7)
Gross profit $ 2,789.0 3,286.5
Operating expenses (1,743.7 ) (2,539.2)
Interest expense (56.8) (46.6)
Income before taxes $ 988.5 700.7
Tax expense (394.7) (276.1)
Net income 593.8 424.6
Net income per share $ 2.40 6.50
Note: Because comparative statements are not provided you should use year-end balances in place of average balances as appropriate.
Required:
Calculate the rate of return on assets for the following companies
Calculate the return on assets for both companies.
Calculate the Rate of return on shareholders’ equity for the following companies
Calculate the equity multiplier for the following companies.
Calculate the acid-test ratio and current ratio for the following companies.
Calculate the receivables and inventory turnover ratios the following companies.
Calculate the times interest earned ratio for the following companies.
Answer and Explanation:
We refer to balance sheet figures for each company stated above to retrieve figures for our calculations and use the following formulas for calculations:
For return on assets= net imcome/total assets
For rate of return on shareholders equity =net income/equity
For equity multiplier= total assets/ total equity
For acid-test ratio=liquid assets/current liabilities
For current ratio =current assets/current liabilities
For receivables = credit sales /acct receivables and inventory turnover ratios=cost of goods/inventory
For times interest earned ratio=ebit/interest expenses