Sandy purchases a perpetuity-immediate that makes annual payments. The first payment is 100, and each payment thereafter increases by 10. Danny purchases a perpetuity-due which makes annual payments of 180. Using the same annual effective interest rate, i > 0, the present value of both perpetuities are equal. Calculate i.

Answer:

Instructions are below.

Explanation:

Giving the following information:

Annual fixed costs are $150,000, and variable costs are 40 percent of sales revenue. Last year's revenues totaled $300,000.

To calculate the break-even point in dollars, we need to use the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 150,000 / [(300,000*0.6)/300,000]

Break-even point (dollars)= $250,000

Now, we can determine the margin of safety:

Margin of safety= (current sales level - break-even point)

Margin of safety= 300,000 - 250,000= $50,000

Finally, the sales dollar required to reach $80,000 profit:

Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio

Break-even point (dollars)= (150,000 + 80,000) / 0.6

Break-even point (dollars)= $383,333.33

Answer:

get competitive bids from at least three prospective suppliers

Explanation:

In these specific situations, organizational buyers must often get competitive bids from at least three prospective suppliers. This is because due to the fact that the purchasing amounts are very large there can also be large amounts of money saved by saving a couple of percentages on a purchase. Also since the seller can make large profits from a large order like this one, most suppliers place competitive bids in order to win the transaction.

Answer:

A.

DR Foreign Currency Transaction loss 1,000

CR Accounts Payable (SFr) $1,000

Explanation:

When the transaction was agreed on September 3, 20X8, the exchange rate was;

$0.85  : 1 franc

Therefore the $17,000 was valued at;

= 17,000/0.85

= 20,000 francs

When the transaction was paid for however, on October 10, the Franc had gained on the dollar by;

= 0.9 - 0.85

= $0.05

This means that the dollar got weaker by $0.05 so the company made a loss of

= 20,000 francs * 0.05

= 1,000 francs

This will be recorded as;

DR Foreign Currency Transaction loss 1,000

CR Accounts Payable (SFr) $1,000

Answer: 9.31%

Explanation:

Given: Smathers Corp. stock has a beta of 0.89.

⇒ Beta = 0.89

Risk-free rate = 2.93 percent

Market risk premium = 7.20 percent

Formula: Cost of Equity = [ Risk free rate + (Beta) × ( Market risk premium) ]

Substitute all values, we get

Cost of Equity =  [ 2.9 + (0.89) × ( 7.20) ]%

= [2.9+6.41]%

= 9.31%

Hence, the company's cost of equity is 9.31%.

Answer:

$293,500

Explanation:

The computation of the amount pay in separation cost is shown below:

As there are 587 employees

but 10% are downsized

So, separation cost is

= Current employees × downsized percentage × received amount by workers

= 587 employees × 10% × $5,000

= $293,500

We simply applied the above formula so that the amount pay by the company with respect to the separation cost could arrive

Answer:

Instructions are below.

Explanation:

Giving the following information:

Selling price per unit= $120

Unitary variable cost= $50

Fixed costs= $392,000

First, we need to calculate the break-even point in units and dollars, using the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 392,000/ (120 - 50)

Break-even point in units= 5,600 units

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 392,000 / (70/120)

Break-even point (dollars)= $672,000

Now, we need to determine the number of units to be sold for the desired profit of $152,880:

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (392,000 + 152,880) / 70

Break-even point in units= 7,784 units

Answer:

a. The price of silver increases. - Supply Increase

As the price of silver increases, it will make silver more profitable therefore producers will increase production to take advantage of the higher prices to make more profit in total.

b. Growers of tomatoes experience an unusually good growing season. - Supply Increase

If growers of tomatoes experience a good season, it means that there will be more tomatoes to harvest. This will increase the supply of tomatoes.

c. New medical evidence reports that consumption of organic products reduces the incidence of cancer. - Supply Increase.

Supply of organic products will increase as a result of an anticipated and an actual increase in the demand for organic products as more people will buy them to avoid getting cancer.

d. The wages of low-skill workers, a resource used to help produce clothing, increase. - Supply Decrease

When inputs into the production process increase, producers will tend to cut down production to enable them save cost and maintain profitability. If the wages of low-skill workers increase, it will mean that an input is now more expensive so production of clothing will reduce thereby reducing its supply.

Answer:

2030

Explanation:

The computation of the total number of new generators including this year is shown below

Given that

(A) = 100

Common Ratio (r) = 1.15

n = 10

Now

Sum of 10 terms Sn is

= A × (r n - 1) ÷ (r - 1)

= 100 × (1.1510 - 1) ÷ (1.15 - 1)

= 100 × 3.0456 ÷ 0.15

= 2030

We simply applied the above formula so that the total number of new generators could come

Answer:

Allocated MOH= $356,070

Explanation:

Giving the following information:

Estimated overhead= $667,000

Estimated direct labor hours= 465,000

Actual direct labor hours for lamp desk= 249,000

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 667,000/465,000

Predetermined manufacturing overhead rate= $1.43 per direct labor hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 1.43*249,000

Allocated MOH= $356,070

Answer:

A) $17.80

Explanation:

The computation of the predetermined overhead rate per machine hour is shown below:

= Estimated total fixed manufacturing overhead from the beginning of the year ÷ estimated activity level from the beginning year machine hours

= $534,000 ÷30,000 machine hours

= $17.80

We simply applied the above formula so that the predetermined overhead rate could come

Answer: d. The company would accept more riskier than average projects than they should otherwise.

Explanation:

A company's Weighted Average Cost of Capital can enable it know the calibre of risk to accept from new project because it shows the business risk of funding current business operations.

If a project will bring more risk to the company, the WACC should be adjusted so that the company will get a fair rate of return from the new project. If they do not adjust the new project for risk, not only will the company not get a fair return but they might also accept riskier projects because they will accept projects that they think have a lower risk than their WACC even though they are higher because they did not adjust their WACC.

Answer:

1) Mason Automotive sells 10,000,000 shares at $5 par for $30 on January 1st, 2018.  

Dr Cash 300,000,000

   Cr Common stock 50,000,000

   Cr Additional paid in capital 250,000,000

2) Ed Mason, the CEO, hires 3,000 employees, whom will receive a combined salary of $12 Million on a monthly basis. The employees started on January 1st and will be paid for the month of January on February 5th. Employee's withholdings are as follows: 10% for federal income taxes 5% for state income taxes and 7% for FICA. Record the necessary entry as of January 1st, 2019.          

No journal entry required

Adjusting entry:

January 31, 2018, wages expense

Dr Wages expense 12,000,000

Dr FICA taxes expense 840,000

   Cr Federal income taxes withheld payable 1,200,000

   Cr State income taxes withheld payable 600,000

   Cr FICA taxes withheld payable 840,000

   Cr FICA taxes payable 840,000

   Cr Wages payable 9,360,000

3) Mason Automotive issues a bond payable on January 1st, 2018 with a face value of $200 Million at 102. The bond will have a useful life of 5 years with an interest payment of 5% (Annual Percentage Rate) due at the end of the month. Record the necessary journal entry as of January 1st,  2018.

Dr Cash 204,000,000

   Cr Premium on bonds payable 4,000,000

   Cr Bonds payable 200,000,000

(Note: When considering the amortization of the discount or premium, assume the straight line method is used).  

Adjusting entry        

January 31, 2018, interest expense

Dr interest expense 766,666.66

Dr Premium on bonds payable 66,666.67

   Cr Interest payable 833,333.33

4) Mason Automotive purchased $80 Million dollars worth of inventory on January 2nd, 2018. $80 Million was paid with cash with the remaining balance on account. Mason notes that it will use a perpetual inventory system to track inventory.  

Dr Inventory 80,000,000

       Cr Accounts payable 80,000,000      

5) Mason Automotive purchases fixed assets of $120 Million that will have a useful life of 10 years and no salvage value on January 2, 2018. $20 million was paid with cash with the remaining balance on account. These assets are depreciated using the straight-line method.  

Dr Fixed assets 120,000,000

   Cr Cash 20,000,000

   Cr Accounts payable 100,000,000

Adjusting entry:

January 31, 2019, depreciation expense  

Dr Depreciation expense 1,000,000

   Cr Accumulated depreciation - fixed assets 1,000,000    

6) On January 2nd, Mason Automotive shipped an order to Corby Panther Company. The shipping terms were FOB shipping point and the value of the order was $50 Million and the inventory cost was $20 Million. Assume that this sale was made on account.          

Dr Accounts receivable 50,000,000

   Cr Sales revenue 50,000,000

Dr Cost of goods sold 20,000,000

   Cr Inventory 20,000,000

Adjusting entry:

January 31, 2018, allowance for doubtful accounts (5%)

Dr Bad debt expense 2,500,000

   Cr Allowance for doubtful accounts 2,500,000

7) On January 3, Mason Automotive receives $75 Million advance payment from a customer, Michael Scott Paper Company, to manufacture 7,500 cars.        

Dr Cash 75,000,000

   Cr Deferred revenue 75,000,000

Adjusting entry:

January 31, 2019, 4,000 cars were finished and delivered

Dr Deferred revenue 40,000,000

   Cr Sales revenue 40,000,000

Dr Cost of goods sold 32,000,000

    Cr Inventory: finished cars 32,000,000

8) Mason Automotive buys a patent from Apple for $24 Million on January 3rd, 2018. The patent has a legal life of 20 years, but a the useful life of 10. Record the necessary entry as of January 3rd, 2018. Assume the patent was purchased using cash.          

Dr Patent 24,000,000

   Cr Cash 24,000,000

Adjusting entry:

January 31, 2018, patent amortization expense

Dr Patent amortization expense 200,000

   Cr Patent 200,000

9) Mason Automotive purchased $2 Million dollars worth of supplies on account on January 4, 2018.      

Dr Supplies 2,000,000

    Cr Cash 1,500,000

    Cr Accounts payable 500,000

Adjusting entry

January 31, 2018, supplies expense

Dr Supplies expense 500,000

   Cr Supplies 500,000    

10) Mason Automotive pre-pays for Rent Expense for the next year of $12 Million and Insurance Expense of $2.4 Million on January 4, 2018.  

Dr Prepaid rent 12,000,000

Dr Prepaid insurance 2,400,000

   Cr Cash 14,400,000

Adjusting entries:

January 31, 2019, rent expense

Dr Rent expense 1,000,000

   Cr Prepaid rent 1,000,000

January 31, 2019, insurance expense

Dr Insurance expense 200,000

   Cr Prepaid insurance 200,000        

11) On January 20th, Mason Automotive decides to purchase 2,000,000 shares of Treasury stock at $25 per share.

Dr Treasury stock 50,000,000

   Cr Cash 50,000,000

Dr Sales revenue 90,000,000

    Cr Income summary 90,000,000

Dr Income summary 71,006,66.66

    Cr Wages expense 12,000,000

    Cr FICA taxes expense 840,000

    Cr interest expense 766,666.66

    Cr Depreciation expense 1,000,000

    Cr Cost of goods sold 52,000,000

    Cr Bad debt expense 2,500,000

    Cr Patent amortization expense 200,000

    Cr Supplies expense 500,000

    Cr Rent expense 1,000,000

    Cr Insurance expense 200,000

Dr Income summary 18,993,333.34

    Cr Retained earnings 18,993,333.34

Answer:

i think this is correct

Explanation:

The correct question is:

Glitter Services Inc. owns 30% of voting stock of Grey Investments Inc. During the year 2015, Grey Investments Inc. earned profits of $250,000. Under the equity method, which of the following journal entries will Glitter Services record?

Answer:

D) Debit Long-term Investments—Grey Investments Inc.: 75,000

Credit Revenue from Investments: 75,000

Explanation:

Equity method is used in accounting to treat a companie's investment in associate companies. Usually equity accounting is used when a company owns 20 to 50% of shares in an associate company.

In this case Glitter Services, Inc. owns 30% of voting stock of World​ Investments, Inc.

Grey Investments, Inc. earned profits of $250,000.

So the value of investment is 0.3 * 250,000 = $75,000

So this amount is Debited from Long Term Investment account and credited to Revenue from Investments

Answer:

B

Explanation:

The cost of goods manufactured calculates the total production cost of manufactured goods in a particular period

Answer:

Demographic

Explanation:

A market is segmented so as to narrow down a large market into a narrow base, or a target market. This helps the organization to be better focused on providing its services to these target groups of people. A market can be segmented on the basis of demography, psychography, behavior, and geography. Demography deals more with statistical data of the population being studied and would typically include; age, gender, race, income levels, etc.

So, when the manufacturer Mike and Ike changes its packaging and developed contests all geared to 12-17-years-old, he has segmented the market according to demography and age.

Answer:

im sorry

Explanation:

Answer:

shutdown in the short run

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.  

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.  

A firm should shut down in the short run if price is less than average variable cost.

for T-Shirt Enterprises, price is $2 which is less than average variable cost

Answer:

Rationality.

Explanation:

Rationality refers to the idea that policy-makers have formulated and implemented policy that addresses problems in an optimal or efficient manner.

This ultimately implies that, policy-makers act rationally in order to achieve best goals, objectives and interests of the people effectively and efficiently.

For instance, in a bid to mitigate or eliminate global warming, policy-makers developed and enacted the pollution prevention act. This would limit or regulate the amount of pollutants that is being emitted by an organization in a particular geographical location as well as improving environmental sanitation and reducing environmental degradation.

Answer: A. Tony may rescind the contract on grounds of duress.

Explanation:

For contracts to be considered enforceable, a key factor is that the parties involved must have entered into the agreement of their own accord and free will. Therefore Duress, which denies a person of that free will, becomes a reason why a contract can be voided.

Tony sold Peter the Mustang convertible because Peter had threatened to release details that Tony would rather were kept private so Tony capitulated and sold the Mustang. Had Peter not threatened him, Tony would not have sold the car. This shows that Tony only sold the car under duress and as such can void the contract.

Answer: Dell and Align technology

Explanation:

Mass customization, is used in marketing and it is a term that describes using computer aided manufacturing systems that are flexible in order make custom output.

Align Technology and Dell uses mass customization method. This brings about efficiency and low cost.

Answer:

a. How much will you have in your retirement account on the day you​ retire?

b.​ If, instead of investing $5,000 per​ year, you wanted to make one​ lump-sum investment today for your retirement that will result in the same retirement​ saving, how much would that lump sum need to​ be?

c. If you hope to live for 28 years in​ retirement, how much can you withdraw every year in retirement​ (starting one year after​ retirement) so that you will just exhaust your savings with the 28th withdrawal​ (assume your savings will continue to earn 11.0​% in​ retirement)?

d.​ If, instead, you decide to withdraw $647,000 per year in retirement​ (again with the first withdrawal one year after​ retiring), how many years will it take until you exhaust your​ savings?

e. Assuming the most you can afford to save is $ 1 comma 000$1,000 per​ year, but you want to retire with  $1,000,000 in your investment​ account, how high of a return do you need to earn on your​ investments?​

Answer: False

Explanation:

The statement in the question that a classified income statement has four major sections which are the operating revenues, cost of goods sold, operating expenses, and non-operating revenues and accounts receivables is not true.

It should be noted that a classified income statement is made up of the revenue, the expenses and the non operating revenues and expenses.

Answer:

Calculation of the amount of cash to report in the balance sheet

     Particulars                                          Amount

Currency located at the company          $800

Short-term investments that mature       $1,700

within three months

Balance in savings account                      $7,500

Checks received from customers            $400

but not yet deposited

Coins located at the company                  $100

Balance in checking account                    $5,200

Cash at the end of the year                     $15,700

Thus, the amount of cash to report in the balance sheet is  $15,700,

Note: Supplies ,account receivables and prepaid rent are current asset of the company other than cash. Equipment are non cash

Answer:

[tex]\mathbf{current \ price \ of \ the \ bond= \$848.78}[/tex]

Explanation:

The current price of the bond can be calculated by using the formula:

[tex]current \ price \ of \ the \ bond= ( coupon \times \dfrac{ (1- \dfrac{1}{(1+YTM)^{no \ of \ period }})}{YTM} + \dfrac{Face \ Value }{(1+YTM ) ^{no \ of \ period}}[/tex]

[tex]current \ price \ of \ the \ bond= ( \dfrac{0.064 \times \$1000}{2} \times \dfrac{ (1- \dfrac{1}{(1+ \dfrac{0.091}{2})^{8 \times 2}})}{\dfrac{0.091}{2}} + \dfrac{\$1000 }{(1+\dfrac{0.091}{2} ) ^{8 \times 2}})[/tex]

[tex]current \ price \ of \ the \ bond= \$32 \times $11.19 + \$490.70[/tex]

[tex]current \ price \ of \ the \ bond= \$358.08+ \$490.70[/tex]

[tex]\mathbf{current \ price \ of \ the \ bond= \$848.78}[/tex]

Answer:

$2,335,000= cost of goods manufactured

Explanation:

Giving the following information:

January 1 finished goods, $765,000

December 31 finished goods, $540,000

Cost of goods sold for the year, $2,560,000

To calculate the cost of goods manufactured, we need to use the following formula:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

2,560,000 = 765,000 + cost of goods manufactured - 540,000

2,335,000= cost of goods manufactured

The expected value and standard deviation of the minimum variance portfolio rate of return are 16.20% and 42.61% respectively.

The same old deviation of a portfolio measures how a good deal of the funding returns deviate from the suggestion of the opportunity distribution of investments. placed certainly, it tells traders how a good deal the investment will deviate from its anticipated return.

The same old deviation of the portfolio is usually the same to the weighted average of the same old deviations of the property in the portfolio. A high fashionable deviation in a portfolio indicates a high hazard as it suggests that the profits are especially volatile and unstable.

calculation:-

Weight of Stock =( (17%-5.6%)*40%^2 - (8%-5.6%)*(46%*40%*0.16))/((17%-5.6%)*40%^2 +  (8%-5.6%)*46%^2 - (17%-5.6%+8%-5.6% )*(46%*40%*0.16))

Weight of Stock = 0.9106

Weight of Bond = 1- 0.9106= 0.0894

Portfolio invested in the stock = 91.06%

Portfolio invested in the bond = 8.94%

The expected return of portfolio = Weight of Stock* E(rs) + Weight of Bond *E(rb)

Expected return of portfolio = 91.06%*17 +8.94%*8

Expected return of portfolio = 16.20%

The standard deviation of Portfolio = (Weight of Stock^2 * SD of Stock^2 + Weight of Bond^2 * SD of Bond^2 + 2* weight of Stock*Weight of Bond* COV(S, B))^(1/2)

Standard deviation of Portfolio = (0.9106^2*46%^2 + 0.0894^2*40%^2 + 2*0.9106*0.0894*(46%*40%*0.16))^(1/2)

Standard deviation of Portfolio = 42.61%

Learn more about the Standard deviation of a Portfolio here:-https://brainly.com/question/17191184

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Answer:

4.98%

Explanation:

Calculation for the current yield

First step

Since the the bond was purchased at 95 +15/32nds this means that we have to find the bond percentage.

Calculated as

Bond Percentage = 95 + 15/32nds

Bond percentage =95.46875%

Second step is to multiply the bond percentage by $1,000

95.46875% *$1,000

= $954.6875

The last step is to find the current yield

Current yield=$47.50 /$954.6875

Current yield = 4.98%

Therefore the current yield will be 4.98%

Answer:

Total cash April= $257,500

Explanation:

Giving the following information:

Speedster Bicycles, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale.

Sales:

March= $250,000

April= $280,000

Cash budget of April:

Sales on account from April= 280,000*0.25= 70,000

Sales on account from March= 250,000*0.75= 187,500

Total cash April= $257,500

Answer:

In the United States, the standard methodology for consumers with respect to privacy is opt-out with respect to the United States and her Privacy Law, whereas in the EU it is opt-in.

Explanation:

Privacy laws are laws that provide protection and regulation against storing, using data that might be considered private to an individual or any organisation. such laws act as a guard against any usage of information by governments, public or private organisations, or even other individuals in any part of the world without the owner of such data giving their consent.

Privacy laws, rules, and policies are different from one country to another which all depends on their legal framework and cultural sensitivities in such a nation.

In the United States, the standard methodology for consumers with respect to privacy is opt-out with respect to the United States and her Privacy Law, whereas in the EU it is opt-in.

Opting-out laws cover a spectrum that consists of methods used by an individual to avoid receiving unsolicited service information. When receiving unsolicited service information as a result of data collection a consumer might seek an out way to stop it and to opt-out require affirmative steps to prevent unsolicited service and products. Under opt-out a user can be signed up much more easily.

Opt-In is when an individual chooses to join or participate in something and acknowledging interest in a product or service. Opt-in is used under European data protection rules which grant individuals more control of their data when the person agrees to receive the specified services.

Answer:

Hicks Health Clubs, Inc. earnings after taxes will change by minus $10,800 if they choose the more aggressive financing plan instead of the more conservative plan.

Explanation:

Note: I experienced a difficulty submitting the explanation here. Kindly find attached the full answer and explanation in the attached Microsoft word document.

Answer:

the approximate real interest rate = nominal rate - inflation rate = 6.5% - 1.3% = 5.2%

the exact real interest rate is calculated using the following formula:

(1 + nominal interest rate) = (1 + real interest rate) (1 + expected rate of inflation)

(1 + 0.065) = (1 + real interest rate) x (1 + 0.013)

1 + real interest rate = (1 + 0.065) / (1 + 0.013) = 1.065 / 1.013 = 1.05133

real interest rate = 1.05133 - 1 = 0.05133 = 5.13%