Answer:
$13,335
Explanation:
Required production in units for April and May are 6,500 units and 6,200 units respectively.
Direct labor hours needed is 0.15 for both months.
Total direct labor hours needed for each month would be;
April
= 6,500 units × 0.15
= 975
May
=6,200 units × 0.15
= 930
Direct labor rate per hour for each months is $7
Total direct labor cost for April would be;
= $7 × 975
= $6,825
Total direct labor cost for May would be;
= $7 × 930
= $6,510
Therefore, total direct labor cost for both months April and May would be;
= $6,825 + $6,510
= $13,335
July 15 Declared a cash dividend payable to common stockholders of $163,000.
Aug. 15 Date of record is August 15 for the cash dividend declared on July 15.
Aug. 31 Paid the dividend declared on July 15.
Required:
Prepare journal entries to record the above transactions for Corporation.
Answer:
look up the anwser lol ....
The following is information for Palmer Co.:
2017 2016 2015
Cost of goods sold $643,825 $426,650 $391,300
Ending inventory 97,400 87,750 92,500
Required:
(a) Use the above information to compute inventory turnover for 2016, and its days' sales in inventory at December 31, 2016.
Numerator / Denominator = Ratio
Inventory turnover $426,650 / $90,125 = 4.7 times
Days' sales in inventory ?
(b) Use the above information to compute inventory turnover for 2017, and its days' sales in inventory at December 31, 2017.
Numerator / Denominator = Ratio
Inventory turnover $643,825 / $92,575 = 7.0times
Days' sales in inventory ?
Answer:
a.
i. 4.7 times
ii. 77.1 days
b
i. 7 times
ii. 52.1 days
Explanation:
Inventory turnover = cost of goods sold / average inventory
average inventory for 2016 = ( 87,750 + 92,500 ) / 2 = $90,125
Inventory turnover $426,650 / $90,125 = 4.7 times
Days' sales in inventory = 365 / inventory turnover = 77.1 days
for 2017
inventory turnover = cost of goods sold / average inventory
average inventory for 2017 = ( 97,400 + 87,750 ) / 2 = $92,575
Inventory turnover $643,825 / $92,575 = 7.0 times
Days' sales in inventory = 365 / inventory turnover = 52.1 days
Joan has the following assets and liabilities: Credit card balance$1,000 Cash$200 Government bonds$3,000 Checking$300 Car loan balance$10,000 Car$15,000 What is Joan's money demand
Answer:
$500
Explanation:
Money demand can be described as the part of an assets in which an individual is ready to hold as cash, this cash can be used to purchase goods and services.
In the scenario described above, Joan's money demand is
= Cash balance+Checking account balance
Cash balance = $200
Checking account balance = $300
Money demand= $200+$300
= $500
Hence Joan's money demand is $500
What is the value of a zero-coupon bond with a yield to maturity of 9 percent, a par value of $1,000, and 10 years to maturity? (Assume semi-annual compounding)
Answer:
$414.64
Explanation:
For computing the value of zero-coupon bond we need to apply the present value formula i.e to be shown in the attachment
Given that,
Future value = $1,000
Rate of interest = 9% ÷ 2 = 4.5%
NPER = 10 years × 2 = 20 years
PMT = $0
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the present value is $414.64
The following errors were discovered by the Gerding Company: Failure to record Unearned Revenue in 2026: $6 Failure to record Depreciation in 2025: $8 Indicate the error in 2026 Net Income:
Answer:
Overstated $2
Explanation:
Calculation to Indicate the error in 2026 Net Income
2026 Failure to record Unearned Revenue $6
Less 2025 Failure to record Depreciation ($8)
2026 Net income $2
Therefore the error in 2026 Net Income will be overstated amount of $2
Lefty provides demolition services in several southern states. Lefty has property as follows: Property State Beginning Ending Alabama $ 123,044 $ 204,241 Kentucky $ 203,317 $ 185,108 Mississippi $ 881,932 $ 1,002,396 Louisiana $ 243,951 $ 350,310 Tennessee $ 143,204 $ 143,204 Total $ 1,595,448 $ 1,885,259 Lefty is a Mississippi corporation. Lefty also rents property in Mississippi and Tennessee with annual rents of $56,000 and $21,000, respectively. What is Lefty's Mississippi property numerator
Answer:
Lefty's Mississippi property numerator is
Property Numerator = $56,000
Which can be expressed as a percentage of the Average Annual Property Value
= Annual Rent/Average Annual Property
= $56,000/$942,164 x 100 = 5.9%
Explanation:
a) Data:
Property State Beginning Ending
Alabama $ 123,044 $ 204,241
Kentucky $ 203,317 $ 185,108
Mississippi $ 881,932 $ 1,002,396
Louisiana $ 243,951 $ 350,310
Tennessee $ 143,204 $ 143,204
Total $ 1,595,448 $ 1,885,259
b) Calculations:
Mississippi
Beginning Property value = $ 881,932
Ending Property value = $ 1,002,396
Average annual property value = $942,164 ($ 881,932 + $ 1,002,396)/2
Rent in Mississippi = $56,000
Intra-Spect Mining Co. acquired mineral rights for $153,000,000. The mineral deposit is estimated at 90,000,000 tons. During the current year, 23,400,000 tons were mined and sold.
Required:
a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimals places.
b. Journalize the adjusting entry on December 31 to recognize the depletion expense.
Answer:
a. Determine the amount of depletion expense for the current year.
$39,780,000
b. Journalize the adjusting entry on December 31 to recognize the depletion expense.
Dr Depletion expense 39,780,000
Cr Accumulated depletion: Mine 39,780,000
Explanation:
depletion expense per ton mined = $153,000,000 / 90,000,000 = $1.70 per ton
depletion expense for current year = $1.70 x 23,400,000 = $39,780,000
Depletion expense is similar to depreciation expense since the carrying value of the asset decreases as minerals are being mined.
At a price of $200, a cell phone company manufactures 300,000 phones. At a price of $150, the company produces 200,000 phones. What is the price elasticity of supply
Answer:
1.33
Explanation:
At a price of $200, a cell phone company manufactures 300,000 phones
At a price of $150, the company produced 200,000 phones
P1= $200 , Q1= 300,000 units
P2= $150 , Q2= 200,000 units
Price elasticity = change in quantity / change in price
Change in quantity= Q2-Q1/(Q2+Q1/2)
= 200,000-300,000/(200,000+300,000/2)
= -100,000/500,000/2
= -100,000/250,000
= -0.4
Change in price= P2-P1/(P2+P1/2)
= 150-200/(150+200/2)
= -50/(350/2)
= -50/175
= -0.3
Price elasticity= -0.4/-0.3
= 1.33
Hence the price elasticity is 1.33
The price elasticity of supply when the firm produces 200,000 at a price of $150 per cell phone will be 1.33. The price elasticity of supply is a concept of economics useful in calculation of efficiency in the organization.
The price elasticity refers to the price undergone with the comparison of two different prices and two different rates of production at given price and predetermined period.
The price elasticity of supply however relates to the change in response by the cost and production by a change in cost of production per unit and the supply that is effected at such price being offered.The calculation of price elasticity in this case can be easily calculated with the information provided in the query above. [tex]\rm Quantity\ at\ price\ of\ 200\ per\ unit=\ 300000[/tex][tex]\rm Quantity\ Produced\ at\ 150\ per\ unit=\ 200000[/tex]We know the formula that the price elasticity of supply is obtained by dividing the difference of change in price divided by change in quantity produced.[tex]\rm Price\ Elasticity\ of\ Supply= \dfrac{Change\ in\ Quantity}{Change\ in\ Price}[/tex]Putting the values in the equation we get, [tex]\rm Change\ in\ price= \dfrac{150-200}{\dfrac {150+200}{2}}[/tex][tex]\rm Change\ in\ Price= -0.3[/tex]Now calculating Change in quantity[tex]\rm Change\ in\ Quantity= \dfrac{200000-300000}{\dfrac {200000+300000}{2}}[/tex]We get,
[tex]\rm Change\ in\ Quantity= -0.4[/tex]Putting the values obtained in the formula we can calculate as ,[tex]\rm Price\ Elasticity\ of\ Supply= \dfrac{-0.4}{-0.3}[/tex]So now we finally get the price elasticity of supply as [tex]\rm Price\ Elasticity\ of\ Supply= 1.33[/tex]Hence, the value obtained for Price Elasticity of Supply for cell phones produced in two different quantities at two different prices is 1.33.
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eco 203 In the __________ view, there are ample loanable funds available at the current interest rate. When G increases, no crowding out occurs, interest rates do not rise, and aggregate expenditures rise by the full amount of G.
Answer:
The answer is "In the classical view, there are ample loanable funds available at the current interest rate. When G increases, no crowding out occurs, interest rates do not rise, and aggregate expenditures rise by the full amount of G."
Explanation:
In the classical view, the capital market will find the balance between the demanded investment quality and the supplied savings one itself. However, in the Keynesian view, for example during a recession, government spending (G) will increase and there will be a competition to acquire available capital supply, that leads to the crowding out occurs and the general interest rate increases.
You have found three investment choices for a one-year deposit: 9.4 %9.4% APR compounded monthly, 9.4 %9.4% APR compounded annually, and 8.7 %8.7% APR compounded daily. Compute the EAR for each investment choice. (Assume that there are 365 days in the year.) (Note: Be careful not to round any intermediate steps less than six decimal places.)
Answer and Explanation:
The computation of EAR for each investment is shown below:-
EAR = ((1 + APR ÷ m)^m) - 1
where m indicates compounding periods
Now we will put the values with the help of the above formula
For 9.4% APR compounded monthly is
EAR = ((1 + 0.094 ÷ 12)^12) - 1
= 9.815747%
For 9.4% APR compounded annually is
EAR = ((1 + 0.094 ÷ 1)^1) - 1
= 9.400000%
For 8.7% APR compounded daily is
EAR = ((1 + 0.087 ÷ 365)^365) - 1
= 9.088537%
If a company is considering optimizing the physical location for every activity in the value chain, which of the following is not a possible strategic advantage for that decision?
A. Performance enhancement
B. Cost reduction
C. Political risk reduction
D. Life-cycle enhancement
Answer:
The correct answer is: D. Life-cycle enhancement
Explanation:
When a company wants to optimize physical locations for all activities in the value chain, it must manage all elements of the value chain to improve processes and increase the efficiency and effectiveness of the value chain. Therefore, some strategic advantages for this decision include the improvement of organizational performance, which would optimize the stages of the value chain, reducing waste, and the failures of the process, which would generate cost reduction. Compliance with legislation would also decrease political risks, being a significant strategic advantage for improving the value chain.
Therefore, the life-cycle enhancement may not constitute a strategic advantage, because this process requires greater capacity for the company to manage and monitor variable resources during the enhancement life cycle, which can generate greater difficulty in managing the value chain. and higher spending.
Android Products, Inc., agreed to accept a $1,000, one-year, 10 percent note from C. Mate. On its maturity date of December 16, Mate honors the note by making a payment of $1,100. That payment consisted of the principal of $1,000 plus interest in the amount of $100 (computed as $1,000 × 10%).
Prepare the necessary December 16 entry for Android by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Date General Journal Debt Credit
Dec. 16
Answer:
Android Products, Inc.
Journal Entries
Date General Journal Debit Credit
Dec. 16 Cash $1,100
Notes Receivable $1,000
Interest Revenue $100
Two of the characteristics of useful information are: a. flexibility and durability. b. clarity and confidentiality. c. redundancy and simplicity. d. relevance and timeliness.
Answer:
The answer is D.
Relevance and timelinessThe two of the characteristics of useful information are d. relevance and timeliness.
The following information regarding the useful information is as follows:
It should be relevant to the thing which is needed. As irrelevant things should be useless.Also the useful information should be delivered on before time.Therefore we can conclude that the two of the characteristics of useful information are d. relevance and timeliness.
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Poppy Corporation owns 60 percent of Seed Company's common shares. Balance sheet data for the companies on December 31, 20X2, are as follows: Poppy Corporation Seed Company Assets Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Investment in Seed Company Stock Total Assets Liabilities and Owners' Equity Accounts Payable Bonds Payable Common Stock ($10 par value) Retained Earnings Total Liabilities and Owners' Equity $ 51, eee 86,000 119, eee 680,000 (210,000) 141,000 $ 907,000 $ 33,000 52,000 97,000 390,000 (78,000) $494,000 $ 117,000 250, eee 300,000 240,000 $ 907,000 $ 59,000 200,000 100,000 135,000 $494,000
The bonds of Poppy Corporation and Seed Company pay annual interest of 8 percent and 10 percent, respectively. Poppy's bonds are not convertible Seed's bonds can be converted into 10,000 shares of its company stock any time after January 1, 20X1. An income tax rate of 40 percent is applicable to both companies. Seed reports net income of $36,000 for 20x2 and pays dividends of $10,000 Poppy reports income from its separate operations of $46,000 and pays dividends of $20,000
Required: Compute basic and diluted EPS for the consolidated entity for 20x2. (Round your answers to 2 decimal places.) Basic earnings per share Diluted earnings per share
Answer:
Poppy Corporation
Consolidated EPS
Basic Earnings per share = $67,600/10,000 = $6.76 per share.
Diluted earnings per share = $74,800/10,000 = $7.48 per share
Explanation:
With the conversion of the Seed's bonds, the interest of $20,000 would be included in its income. And an after tax increase of $12,000 (after taking out tax of 40% on $20,000) would be added to the net income, making the net income to become $48,000 ($36,000 + 12,000). The group's share of the net income would become $28,800 ($48,000 x 60%). This amount is added to the Poppy's net income of $46,000 to get a consolidated net income of $74,800 after the conversion of the bonds.
Before the conversion, the consolidated net income is $67,600 ($46,000 + 60% of $36,000).
EPS becomes diluted with the conversion of convertible debt securities. The effect for a consolidated entity like Poppy is the increase in the net income attributable to the holding company with the elimination of the interest expense. However, the number of shares outstanding for the group would remain the same as before the conversion since it was the bonds of the subsidiary that was converted and not the group's.
intext:"If a company is considering the purchase of a parcel of land that was acquired by the seller for $85,000, is offered for sale at $150,000, is assessed for tax purposes at $95,000, is considered by the purchaser as easily being worth $140,000, and is purchased for $137,000, the land should be recorded in the purchaser's books at"
Answer:
the seller must record the land at the purchase price = $137,000
Explanation:
Fixed assets like land must always be recorded at historical cost. This is specially important regarding land because it doesn't depreciate and its carrying value will always be the purchase cost since it cannot be adjusted if the fair market value changes.
The depreciation method that produces larger depreciation expense during the early years of an asset's life and smaller expense in the later years is a(an):
Answer:
Accelerated depreciation method
Explanation:
Accelerated depreciation is a method of depreciation in which the assets lost his purchase price or book value at the speedy rate as compared with the straight-line method.
And it generates a larger amount of expenses during the early period and the smaller amount of expenses in the later year so that it can be decreased the taxable income
Planning, implementing and controlling the physical flow of materials, final goods and related information from points of origin to points of consumption to meet customer requirements at a profit is called
Answer:
Marketing Logistics
Explanation:
The term that is being described in the question is known as Marketing Logistics. Like mentioned, this is various aspects/processes that need to take place when moving products from producer to market all in order to meet customer demands while making a satisfactory profit at the same time. This is a big part of every business since a business with a good marketing logistics department can easily keep track of product shipments and move products or information quickly to the correct locations thus making everything much more efficient.
Suppose a Roasted Olive restaurant is considering whether to (1) bake bread for its restaurant in-house or (2) buy the bread from a local bakery. The chef estimates that variable costs of making each loaf include $.52 of ingredients, $.24 of variable overhead (electricity to run the oven), and $.70 of direct labor for kneading and forming the loaves. Allocating fixed overhead (depreciation on the kitchen equipment and building) based on direct labor assigns $.96 of fixed overhead per loaf. None of the fixed costs are avoidable. The local bakery would charge $1.75 per loaf.
a. What is the unit cost of making the bread in-house (use absorption costing)?
b. Should Roasted Olive bake the bread in-house or buy from the local bakery? Why?
Answer:
Roasted Olive should bake the bread in-house.
Because, It is cheaper to bake the bread in-house than to purchase as this saves $0.29 per loaf of bread.
Explanation:
Cost of Making
Unit Cost (Absorption Costing) = All Manufacturing Cost (Fixed and Variable)
= $0.52 + $0.24 + $0.70 + $0.96
= $2.42
Cost of Buying from Local Bakery
Note that the fixed costs are note avoidable, meaning that they would be incurred whether or not the bread is made internally or purchased from local Bakery
Cost of Purchase Option per unit :
Purchase Price $1.75
Add Fixed Overhead per loaf $0.96
Total unit cost $2.71
Conclusion :
It is cheaper to bake the bread in-house than to purchase as this saves ( $2.71 - $2.42) $0.29 per loaf of bread.
Therefore, Roasted Olive should bake the bread in-house.
Managers are important members of the organization. Within an organization, there are managers at four levels: top, middle, first-line, and team leaders.
a. True
b. False
Answer:
The correct answer is the option B: False.
Explanation:
To begin with, the managers are one of the most important parts of the organization due to the fact that they have the task to plan, organize, direct and control the operations of the company. There are at least three levels in which the managers can go and have their work done, like the management area(high), the department areas(middle) and the operations area(low): However, that will depend on the organization and its size due to that an organization can only have managers at one level.
Consider a product with a daily demand of 600 units, a setup cost per production run of $200, a monthly holding cost per unit of $5.00, and an annual production rate of 300,000 units. The firm operates and experiences demand 300 days per year.
Required:
a. What is the optimum size of the production run?
b. What is the average holding cost per year?
c. What is the setup cost per year?
d. What is the total cost per year if cost of each unit is 10 dollars?
e. Suppose that management mistakenly used the basic EOQ model to calculate the batch size instead of using the POQ model. How much money per year has that mistake cost the company?
Answer:
a. 3,795 units
b. $1,897.50
c. $2,845.80
d. $42,693.80
Explanation:
Optimum size for the Production ran is the size that minimizes Set-up costs and Holding costs.
Optimum size for the Production = √ (2 × Annual Production × Set-up cost) / Holding Cost per unit
Optimum size for the Production = √ (2 × 600 × 300 × $200) / $5.00
= 3,794.73 or 3,795 units
Average Holding Cost = Optimum size for the Production / 2
= 3,795 units / 2
= $1,897.50
Set - up Cost = Total Annual Production / Optimum size for the Production × Set - up cost per unit
= ((600 × 300) / 3,795)× $5.00
= $237.15
Annual cost = $237.15 × 12
= $2,845.80
Total Cost Calculation
Purchase Price (3,795 × $10) = $37,950.50
Holding Cost = $1,897.50
Set - up Cost = $2,845.80
Total Cost = $42,693.80
POQ = Optimum size for the Production / Annual Demand
= 3,795 units / (300 × 600)
= 0.021
Imagine that a politician has been asked to support the public good proposals below. In order not to waste money and improve her chances of reelection, she makes her decisions based on a cost-benefit analysis. In each of the situations, should she support or reject the proposal?
a) repairing a broken dam that is a major source of hydroelectric power for a large city
b) fixing a pothole along a lightly used street
c) installing streetlights in a community where there has been a lot of crime
d) building a flood control system for an area that floods once every 100 years
Answer:
a) repairing a broken dam that is a major source of hydroelectric power for a large city - Support
The Cost-benefit Analysis here will show a high benefit because the city relies on the dam to produce electricity. If the dam is repaired, the productivity of the city can increase which translates to higher benefits.
b) fixing a pothole along a lightly used street - Reject
The pothole being fixed is not very cost effective because the road is not being used by many. The chances of a high number of cars being damaged therefore is low so resources should not used to fix this road unless in excess.
c) installing streetlights in a community where there has been a lot of crime - Support
Criminals feel emboldened by darkness because they are concealed better and can escape faster. Installing lights will reduce crime and criminals will be spotted faster and their escape will be made harder. She should support this initiative as the benefits outweigh the costs.
d) building a flood control system for an area that floods once every 100 years - Reject
The time taken for the area to flood in the area is quite high. There is therefore no point in installing a flood control system at the moment when resources are a bit scarce. She should not support this initiative for the time being.
Indicate what components of GDP (if any) each of the following transactions would affect. a. Your parents buy a new house from a local builder. b. Your parents pay an accountant to file their tax returns. c. New York hires workers to plow snow after a snowstorm. d. Honda expands its factory in Ohio. e. Ford sells a Mustang from its inventory to the Martinez family. f. Aunt Polly buys a new air conditioner from a domestic manufacturer. You buy a new Toshiba computer. g. the Jackson family buys an old Victorian house from the Walker family.
Answer:
a. Consumption spending
b. consumption spending
c. government spending
d. investment
e. consumption and investment
f. consumption spending
g. not included in GDP
Purchase of a Toshiba laptop is consumption spending
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
When exports exceeds import there is a trade deficit and when import exceeds import, there is a trade surplus.
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used or old products
5. sale or purchase of intermediate products
Consumption spending includes expenditures by households on durable and non durable goods and services
the following are durable consumption by households and are included in the calculation of GDP :
Purchase of a house
Purchase of a mustang
Purchase of an air conditioner
purchase of a computer
the purchase of the old Victorian house isn't included in the calculation of GDP because it is old. Only items produced in the current year are included in the GDP. if the old home is counted, it would be double counting
hiring an accountant is an example of purchase of services by households and it is consumption spending.
Spending by businesses are included in investment spending.
expenditure by the government or state are included in government spending
The following data concerns a proposed equipment purchase: Cost $ 144,000 Salvage value $ 4,000 Estimated useful life 4 years Annual net cash flows $ 46,100 Depreciation method Straight-line Assuming that net cash flows are received evenly throughout the year, the accounting rate of return is (ignore income taxes):
Answer:Accounting rate of return = 15%
Explanation:
Accounting rate of return =Net income(Net cash flow - depreciation expense) / Average investment x 100
but depreciation = Cost of equipment - salvage value/ useful life
=(144,000 - 4000)/ 4= 140,000/ 4= $35,000
also,
Average Investment = Cost of equipment +salvage value /2
=( 144,000+4000)/ 2= 148,000 /2 = $74,000
Accounting rate of return =Net income(Net cash flow - depreciation expense) / Average investment x 100
(46,100 - 35,000)/ 74,000} x 100 =11,100/74,000=0.15 x 100= 15%
Carmelita Company sells 40,000 units at $18 per unit. Variable costs are $10 per unit, and fixed costs are $62,000. What is the unit contribution margin? _________________________ What is the contribution margin ratio? _________________________ What is income from operations? ___________________________
Answer:
1. 44.44%
2. $258,000
Explanation:
Contribution Margin refers to what is left of sales income after the Variable Costs have been removed.
= Sales price - Variable cost
= 18 - 10
= $8
Contribution Margin Ratio = (Contribution Margin / Sales price) * 100%
= 44.44%
2. Income from Operations
= (Sales Quantity * Contribution Margin) - Fixed Costs
= (40,000 * 8) - 62,000
= 320,000 - 62,000
= $258,000
Students arrive at the Administrative Services Office at an average of one every 15 minutes, and their requests take on average 10 minutes to be processed. The service counter is staffed by only one clerk, Judy Gumshoes, who works eight hours per day. Assume Poisson arrivals and exponential service times.
Required:
a. What percentage of time is Judy idle?
b. How much time, on average, does a student spend waiting in line?
c. How long is the (waiting) line on average?
d. What is the probability that an arriving student (just before entering the Administrative Services Office) will find at least one other student waiting in line?
Hernandez, Inc. signed a ten-year noncancelable lease for a heavy duty drill press. The lease stipulated annual payments of $300,000 starting at the beginning of the first year, with title passing to Hernandez at the expiration of the lease. Hernandez treated this transaction as a operating lease. The drill press has an estimated useful life of 15 years, with no salvage value. Hernandez uses straight-line amortization for all of its plant assets. Aggregate lease payments were determined to have a present value of $1,800,000, based on implicit interest of 10%. What amount of amortization expense should be recorded for 2021?
Answer: $120,000
Explanation:
Depreciation is to be based on the cost of the asset being depreciated. In this scenario, the cost of the heavy duty drill press will be the Present Value of all the lease payments for the entire 10 years because it is said that the title will pass to Hernandez Inc. afterwards so the lease payments can be considered as payment.
Straight Line Amortisation = [tex]\frac{Cost of Asset - Salvage Value}{Estimated Useful Life}[/tex]
Straight Line Amortisation = [tex]\frac{1,800,000 - 0}{15}[/tex]
Straight Line Amortisation = $120,000 per year
If a small electric automobile manufacturer is able to gain the social return generated by its electric motor, its demand for financial capital would Group of answer choices
Answer: shift to the left
Explanation:
When a small electric automobile manufacturer is able to gain the social return generated by its electric motor, then its demand for financial capital will shift to the left.
This means that since the financial capital shift to the left, there will be a reduction in the demand for financial capital.
both capital and labor double, given the production function, output will double . If output doubles when inputs double, the production function will be characterized by ________.
Answer:
If output doubles when inputs double, the production function will be characterized by a constant returns to scale.
Explanation:
In economics, returns to scale refers to a long run situation that reveals to the proportionate change in output when capital and labor inputs become variable or change.
The three possible types of returns to scale are as follows:
1. Increasing returns to scale: This occurs when the proportionate change in output is greater than the proportionate change in capital and labor inputs.
2. Decreasing returns to scale: This occurs when the proportionate change in output is less than the proportionate change in capital and labor inputs.
3. Constant returns to scale: This occurs when the proportionate change in output is the same as the proportionate change in capital and labor inputs.
Based on the above explanation therefore, if output doubles when inputs double, the production function will be characterized by a constant returns to scale. This is because the the proportionate change (double) in output is the sames as the proportionate change (double) in inputs.
At the end of the year, overhead applied was $42,000,000. Actual overhead was $40,300,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to
Answer:
Hence, closing over overhead into Cost of Goods Sold would cause net income to increase by $ 1,700,000
Explanation:
Overheads are charged to units produced by the means of using an estimated overhead absorption rate. This rate is computed using budgeted overhead and budgeted activity level.
As a result of this, overhead charged to total units product might be over or under absorbed compared to the actual amount incurred.
Over applied overhead = Applied overhead - Actual overhead
= 42,000,000 - 40,300,00 = 1,700,000
Over applied overhead = $ 1,700,000
The adjustment required is to reduce the cost of gods sold by the amount of over-applied overhead because the cost of goods sold figure is would have over charged.
Hence, closing over overhead into Cost of Goods Sold would cause net income to increase by $ 1,700,000 because net income and cost of Goods Sold are inversely related.
You expect a share of stock to pay dividends of $1.70, $1.95, and $2.20 in each of the next 3 years. You believe the stock will sell for $29.00 at the end of the third year.
a. What is the std, ak price if the discount rate for the stock is 20%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Stock price $ 20.83
b. What is the dividend yield for year 1? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Dividend yield %
c. What will be the dividend yield at the start of year 2? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Dividend yield %
Answer:
A) 20.82
B) Dividend Yield = 8.16%
C) Second Year values:
market price: 23.30 per share
dividend yield: 8.37%
Explanation:
[tex]\left[\begin{array}{ccc}#&Dividends&Discounted\\&1&\\1&1.7&1.42\\2&1.95&1.35\\3&2.2&1.27\\3&29&16.78\\\\&TOTAL&20.82\\\end{array}\right][/tex]
At the third year we have two return the 2.2 dividends and the 29 dollars from the sale.
Dividends yield first year:
1.7 / 20.82 = 0,08165
Second Year:
Market price:
[tex]\left[\begin{array}{ccc}#&Dividends&Discounted\\1&1.95&1.63\\2&2.2&1.53\\2&29&20.14\\&TOTAL&23.3\\\end{array}\right][/tex]
Dividend Yield:
1.95 / 23.3 = 0,08369