Standard, Inc. reported EBIT of $35 million for last year. Depreciation expense totaled $20 million and capital expenditures came to $7 million. Free cash flow is expected to grow at a rate of 6 percent for the foreseeable future. Stuart faces a 21 percent tax rate and has a .40 debt to equity ratio with $120 million (market value) in debt outstanding. Standard's equity beta is 1.25, the risk-free rate is currently 5 percent and the market risk premium is estimated to be 7.5 percent. What is the current value (in millions) of Standard's equity?

Answers

Answer 1

Answer:

$710.84 million

Explanation:

Net income = $35 million

Depreciation = $20 million

Capital expenditures = $7 million

Tax rate = 21%

D/E ratio = 0.4

Growth rate = 6%

Equity beta = 1.25

So, firm's asset beta = Equity beta/(1 + D/E*(1-T))

= 1.25/(1 + 0.4*(1-0.21))

= 0.94985

So, Free Cash Flow to the Firm= NI + Depreciation - Capital expenditures

= 35 + 20 - 7

= $48 million

Risk free rate Rf = 5%

Market risk premium = 7.5%

So, firm cost of capital using CAPM is Rf + Beta*(MRP)

Kc = 5 + 0.94985*7.5

Kc = 12.1239

So, Firms value using constant dividend growth model:

FV = FCF*(1+g)/(Kc-g)

FV = 48*1.06 / 0.121239-0.06

FV = 50.88 / 0.061239

FV = 830.8430901876255

FV = $830.84 million

Debt = $120 million

Market Value of equity = FV - Debt

Market Value of equity = $830.84 million - $120 million

Market Value of equity = $710.84 million


Related Questions

The interdependence principle: is the same as the cost-benefit principle. implies that consumers depend on each other to make purchase decisions in the market. implies that buyers decisions are affected by many factors other than the price of an item. refers to the marginal benefit of consuming additional units of an item.

Answers

Answer:

Option a (implies............market) is the right response.

Explanation:

As stated throughout the concept of interdependence, these same purchase behaviors, as well as judgments of customers, have been influenced by the choices of about there peers. There are therefore multimedia adverse effects during which companies depend on everyone to decide what to buy mostly on the real economy.

Some other options available are not connected to the circumstance in question. So the option above is correct.

Help Me! I cant do this question and I am so confused!

Answers

Answer:

3,000

Explanation:

Divide 24,000 by 8

Answer:

It is B

Explanation:

3,000

Charles Lackey operates a bakery in Idaho​ Falls, Idaho. Because of its excellent product and excellent​ location, demand has increased by 55​% in the last year. On far too many​ occasions, customers have not been able to purchase the bread of their choice. Because of the size of the​ store, no new ovens can be added. At a staff​ meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by​ hand, requiring additional manpower. This is the only thing to be changed.​ (Productivity remains the​ same.) ​The bakery makes 1,500 loaves per month with a labor productivity of 2.344 loaves per labor-hour, how many workers will lackey need to add? (hint: each worker works 160 hours per month).

Answers

Answer:

Charles Lackey Bakery

The number of workers that Lackey will need to add is:

= 2.

Explanation:

a) Data and Calculations:

Increase in demand for bread = 55%

Units of bread produced per month = 1,500 loaves

Expected increase in production = 625 loaves

Total units of bread to be produced with the increase = 2,125 loaves

Labor productivity = 2.344 loaves per labor-hour

Labor hours by each worker per month = 160 hours

Total loaves produced by a worker = 375 (160 * 2.344) loaves

Number of workers currently engaged = 4 (1,500/375)

Number of workers needed to produce 2,325 (1,500 * 1.55) loaves with same labor productivity = 2,325/375 = 6.2

Number of workers that Lackey will add = 2 (6 - 4).

b) The labor productivity shows the output per labor-hour.  If a worker, who works for 160 hours a month, can produce 375 loaves of bread, it implies that 6 workers, working the same labor-hours each will be able to produce 2,325 approximately, which equals the expected total output caused by the 55% increase in demand from 1,500 loaves of bread per month.

You have been learning about the accounting equation, debits/credits, and account normal balances. The accounting equation is the foundation of accounting. Understanding debits/credits and the account normal balances are just as important. Sometimes, these concepts are difficult to understand and/or remember. Please research the Internet to find fun and easy ways to remember this information. It could be a song, a mnemonic, phrase, video, etc. It can even be something that you have created. Make sure that the information is college appropriate. Please post your findings and include a link that references the material. Then in a minimum of a paragraph, summarize why you choose this source, how it has helped you remember the material, and why other students would find it helpful.

Answers

Answer:

using the word DEALER

since we record our debit accounts on the left hand side of the Ledger and we record credit accounts on the right hand side of the Ledger hence

DEA represents ( Dividends, expenses , Assets ) which are recorded in Debit accounts  while

LER represents ( Liabilities ,Equity and revenues ) which are recorded in credit accounts

Explanation:

The fundamentals of accounting is based on the ability to distinguish between a Debit and a credit . ability to do this efficiently will help in the process of balancing the ledger at the end of each accounting period. most times the concepts of Debits and credits are not so easy to memorize hence i will such the Fun way of Memorizing them which is;

using the word DEALER

since we record our debit accounts on the left hand side of the Ledger and we record credit accounts on the right hand side of the Ledger hence

DEA represents ( Dividends, expenses , Assets ) which are recorded in Debit accounts  while

LER represents ( Liabilities ,Equity and revenues ) which are recorded in credit accounts

Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received a $20,000 bill from her accountant for consulting services related to her small business. Isabel can pay the $20,000 bill anytime before January 30 of next year without penalty. Assume her marginal tax rate is 37 percent this year and next year, and that she can earn an after-tax rate of return of 8 percent on her investments

Required:
a. What is the after-tax cost if Isabel pays the $19,000 bill in December?
b. What is the after-tax cost if Isabel pays the $19,000 bill in January?
c. Based on requirement a and b, should Isabel pay the $19,000 bill in December or January?

Answers

Answer:

A. $11,970

B. $11,890

C. January

Explanation:

a. Calculation for the after-tax cost if Isabel pays the $19,000 bill in December

After-tax cost=$19,000 - ($19,000 x 37%)

After-tax cost= $19,000 - $7,030

After-tax cost= $11,970

Therefore the after-tax cost if Isabel pays the $19,000 bill in December will be $11,970

b. Calculation for the after-tax cost if Isabel pays the $19,000 bill in January

First step is to calculate the cost before taxes

Cost before taxes = $19,000 - ($19,000 x 8%/12) Cost before taxes= $19,000 - $127

Cost before taxes= $18,873

Now let calculate the After-tax cost

After-tax cost = $18,873 - ($18,873 x 37%)

After-tax cost= $18,873 - $6,983

After-tax cost = $11,890

Therefore the after-tax cost if Isabel pays the $19,000 bill in January will be $11,890

c. Based on the above calculation for both a and b, Isabel should pay the amount of $19,000 bill in January reason that it has the lowest cost of debt of the amount of $11,890 compare to December which has the cost of debt of the amount of $11,970.

1. mouldboard
2. sickle
a metal plow that could be used to
dig deep ridges in an agricultural field
a long, curved blade used in
agriculture
a device used in harvesting that
separates the husk from the grain
3. thresher

Answers

1. Mouldboard is a long, curved blade used in agriculture
2.A metal plow that could be used to dig deep ridges in an agricultural field
3. Thresher: a device used in harvesting that separates the husk from the grain

You can buy a television for $349 cash or pay $75 down and the balance in 18 monthly payments of $22.50. What is the installment price of the television? By what percent would the installment price be greater than the cash price?

Answers

349 (cash price)
If payment option
18x22.50=405 (balance) +75(down payment )= 480
A difference of 131
27.292% difference

A survey was conducted from 1000 people about what they like the most? By looking at graph how many people enjoyed grapes and bananas?

Answers

Answer: 270 people

Explanation:

Looking at the graph you can tell that: 20% of the people enjoyed grapes and 7% enjoyed bananas.

The percentage of people who enjoy both bananas and grapes is:

= 20 + 7

= 27%

1,000 people were interviewed. The number of people who enjoy both bananas and grapes is:

= 27% * 1,000

= 270 people

Legal forces are important external forces that international managers need to understand. They are developed at the national level, so international ventures should take care to build relationships with local-level lawyers. Identify each of the legal characteristics by matching where it is found to the correct characteristic.

a. U.S. Product Liability Law
b. EU Competition Law
c. US and EU
d. U.S. Tort Law
e. U.S. Competition Law
f. France

1. Per se application
2. Misuse of activity
3. Extraterritoriality
4. Trade obstacle, non-tariff
5. Strict liability
6. Punitive damages

Answers

Answer:

1. Per se application  - US Competition law

Justification: It is a provision of US competition law

2. Misuse of activity - EU Competition law

Justification: It is a provision of EU competition law

3. Extraterritoriality - US and EU

Justification: It is a provision of US and EU antitrust and competition law

4. Trade obstacle, non-tariff - France

Justification: These are considered to be part of the France trade system

5. Strict liability - U.S. Tort Law

Justification: It is part of the U.S. Tort Law and depends on intent to harm liability

6. Punitive damages - U.S. Product Liability Law

Justification: It is a provision of U.S. Product Liability Law

One of two alternatives will be selected to reduce flood damage in a rural community in central Arizona. The estimates associated with each alternative are available. Use B/C analysis at a discount rate of 8% per year over a 20-year study period to determine which alternative should be selected. For analysis purposes only, assume that the benefits of reduced flood damage are available in years 3, 9, and 18 of the study period.
Retention Pond Channel
Initial Cost, $880,000 1,500,000
Annual Maintenance, $/Year 92,000 30,000
Reduced Flood Damage, $ 200,000 625,000

Answers

Answer:

Since the incremental B/C of 58.21 is less greater 1, it implies that the alternative that should be selected is Channel.

Explanation:

The alternative that should be selected can be determined using the Benefit-Cost (B/C) analysis as follows:

Incremental B/C = [Incremental Flood damage savings * ((1 + r)^-3 + (1 + r)^-9 + ((1 + r)^-18)] / [Incremental initial cost + (Incremental Annual Maintenance cost * ((1 - (1 / (1 + r))^n) / r))] ............... (1)

Where:

Incremental initial cost = Channel initial cost - Retention pond initial cost = $1,500,000 - $880,000 = $620,000

Incremental Annual Maintenance cost = Channel Annual Maintenance - Retention pond Annual Maintenance = $30,000 - $92,000 = -$62,000

Incremental flood damage savings = Channel Incremental flood damage savings - Retention pond incremental flood damage savings = $625,000 - $200,000 = $425,000

r = Discount rate = 8%, or 0.08

n = number of years = 20

Substituting all the relevant values into equation (1), we have:

Incremental B/C = [425000 * ((1+0.08)^-3 + (1+0.08)^-9 + (1+0.08)^-18)] / [$620,000 - ($62,000 * ((1 - (1 / (1 + 0.08))^20) / 0.08))]

Incremental B/C = $656,340.35 / $11,274.86

Incremental B/C = 58.2127235166936

Rounding to 2 decimal places, we have:

Incremental B/C = 58.21

Since the incremental B/C of 58.21 is less greater 1, it implies that the alternative that should be selected is Channel.

This Venn diagram compares two career pathways in the Marketing, Sales, and Service career cluster.



Which correctly lists the titles for this Venn diagram?

Title 1: Marketing and Information Management and Research; Title 2: Professional Sales and Marketing.
Title 1: Marketing Communications and Promotions; Title 2: Marketing and Information Management and Research.
Title 1: E-Marketing; Title 2: Management and Entrepreneurship.
Title 1: Professional Sales and Marketing; Title 2: Buying and Merchandising.

Answers

Answer:

Title 1: E-Marketing; Title 2: Management and Entrepreneurship.

Explanation:

Title 1: E-Marketing; Title 2: Management and Entrepreneurship are correct as per the Venn diagram and have two careers marketing and sales.

What is a Venn diagram?

A venn diagram is a widely used diagram that shows legal relationships. These diagrams are used for teaching elements set theory and illustrate a set of relationships.

As probability, logic, and statistics. The marketing and sales and a cluster are service career are under title marketing and title two is management and entrepreneurship.

Find out more information about the venn diagram.

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What is a periodic adjustment cap?
O A. A limit on how many times the rate can be adjusted
B. A limit on how much an ARM's interest rate can change at each
adjustment period
O C. A limit on a loan's initial interest rate
OD. A limit on how many years a loan can be for

Answers

Answer: B. A limit on how much an ARM’s interest rate can be changed at each adjustment period

Explanation:

Zugar Company is domiciled in a country whose currency is the dinar. Zugar begins 2017 with three assets: cash of 20,000 dinars, accounts receivable of 80,000 dinars, and land that cost 200,000 dinars when acquired on April 1, 2016. On January 1, 2017, Zugar has a 150,000 dinar note payable, and no other liabilities. On May 1, 2017, Zugar renders services to a customer for 120,000
dinars, which was immediately paid in cash. On June 1, 2017, Zugar incurred a 100,000 dinar operating expense, which was immediately paid in cash. No other transactions occurred during the year.
Currency exchange rates for 1 dinar follow:
April 1, 2016 . . . . .. . $0.33 = 1 dinar
January 1, 2017 . . . . .. . . 0.36 = 1
May 1, 2017 . . . . . . . . .. . . 0.37 = 1
June 1, 2017 . . . . . .. . . . . 0.39 = 1
December 31, 2017 . . . . . 0.41 = 1
a. Assume that Zugar is a foreign subsidiary of a U.S. multinational company that uses the U.S.
dollar as its reporting currency. Assume also that the dinar is the subsidiary’s functional currency. What is the translation adjustment for this subsidiary for the year 2017?
b. Assume that Zugar is a foreign subsidiary of a U.S. multinational company that uses the U.S.
dollar as its reporting currency. Assume also that the U.S. dollar is the subsidiary’s functional currency. What is the remeasurement gain or loss for 2017?
c. Assume that Zugar is a foreign subsidiary of a U.S. multinational company. On the December 31, 2017, balance sheet, what is the translated value of the Land account? On the December 31, 2017, balance sheet, what is the remeasured value of the Land account?

Answers

A it just makes sense

Job 910 was recently completed. The following data have been recorded on its job cost sheet: Direct materials $ 2,430 Direct labor-hours 70 labor-hours Direct labor wage rate $ 20 per labor-hour Machine-hours 134 machine-hours The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $21 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 910 would be:

Answers

Answer:

6644

Explanation:if u do the math whith your numbers you should get the answer

Xavier has been working at his first post college job for almost a year when his company gives him a raise, resulting in a paychecks increase of 200, for a total of $400 extra in take home pay every month. He makes a quick list of possible ways to use that money, along with relevant notes for each.



Save for fun summer vacation trip in 8 months

Estimated cost= $1000

Interest rate-- 1% - savings account

3 friends are going -- really want to join



Pay off credit card debt sooner

Balance= $6,500

Interest rate-- 20%

Completely up to date on payments

Typically pay monthly minimum only



Pay down student loan dept

Balance= $34,000

Interest rate-- 4%

Completely up to date on payments



Increase Emergency funds

Balance= $250

Interest rate-- 1% savings account

Realize this should be much higher

Have been lucky so far-- haven't used the account once yet



Participate in company 401(k) plan

Not participating yet

Interest rate-- Variable

Company will match dollar for dollar up to 5% of my salary ($250) a month)



Finance Nicer, more reliable car

Estimated cost- $25,00

Interest rate-- 6%

Currently driving 14-year-old car paid for in cash at a time for purchase

No down payment currently saved



Provide a detailed plan, including actual dollar amounts, for Xavier to wisely use the extra $400 per month from his raise. For each part of the plan, briefly describe why you're making this choice

Answers

Answer:9900

Explanation:

600=700

Xavier might utilise the extra $700 in take-home salary in the following ways:

What are  possible ways to use that money ?

Xavier might save some of the excess cash in a savings account to utilise in the event of emergencies, such as unanticipated auto repairs or unforeseen medical expenses. She may feel more financially secure and ready for the future as a result.

2) Pay off debt: Xavier  might use the additional funds to settle any unpaid debts, including credit card balances and college loans. She might be able to lower her monthly spending and raise her credit score as a result.

3) Put some of the additional cash toward retirement: Xavier  can think about putting some of the extra cash toward retirement by opening a 401(k) or IRA. This may enable her to save . She can use this to increase her future savings and possibly increase her income through compound interest.

4) Set aside some of the additional cash to save for a major purchase: Selena may set aside some of the extra cash to save for a major purchase, such a down payment on a home or a new automobile.

Learn more about Use of money here

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Pollution control equipment for a pulverized coal cyclone furnace is expected to cost $190,000 two years from now and another $120,000 9 years from now. If Monongahela Power wants to set aside enough money now to cover these costs, how much must be invested at an interest rate of 9% per year compounded quarterly

Answers

Answer:

$212,882.75

Explanation:

Cost from 2 years now = $190,000

Cost from 9 years now = $120,000

Interest rate = 9% Quarterly

Present Worth = Cost from 2 years now*[1/(1+interest/m)^nm] * Cost from 2 years now*[1/(1+interest/m)^nm]

Present Worth = 190,000*[1/(1+0.09/4)^2*4] + 120,000*[1/(1+0.09/4)^9*4]

Present Worth = 190,000*[1/(1.0225)^8] + 120,000*[1/(1.0225)^36]

Present Worth = 190,000*[1/1.19483] + 120,000*[1/2.22782]

Present Worth = 190,000*0.83693915 + 120,000*0.4488693

Present Worth = 159018.4385 + 53864.316

Present Worth = 212882.7545

Present Worth = $212,882.75

Thus, the amount to invest to cover these cost is $212,882.75

The suppliers have limited capacity, and no one supplier can meet all the company's needs. In addition, the suppliers charge different prices for the components. Component price data (in price per unit) are as follows:

Supplier
Component 1 2 3
1 $10 $12 $14
2 $10 $10 $11
Each supplier has a limited capacity in terms of the total number of components it can supply. However, as long as Edwards provides sufficient advance orders, each supplier can devote its capacity to component 1, component 2, or any combination of the two components, if the total number of units ordered is within its capacity. Supplier capacities are as follows:
Supplier 1 2 3
Capacity 600 1050 775
1. If the Edwards production plan for the next period includes 1000 units of component 1 and 800 units of component 2, how many units of each component (C1, C2) should be ordered from each supplier (S1, S2, S3)?
2. What is the total purchase cost for the components?

Answers

Answer:

Edwards

1. Units of each component (C1, C2) that should be ordered from each supplier (S1, S2, S3) are:

Supplier     S1        S2       S3    Total

Capacity  600    1050    775

Orders:

C1            600      400              1,000

C2                       650     150      800

Total       600   1,050     150    1,800

2.  The total purchase cost for the components is:

= $18,950

Explanation:

a) Data and Calculations:

Component Price Data:

Component      Supplier

                       1       2        3

1                    $10   $12    $14

2                   $10   $10    $11

Supplier     1        2       3

Capacity  600  1050  775

Requirements:

Component  Units

1                    1,000

2                     800

Supplier 1 for C1 = 600 * $10 =  $6,000

Supplier 2 for C 1 = 400 * $12 =   4,800

Supplier 2 for C2 = 650 * $10 =  6,500

Supplier 3 for C2 = 150 * $11 =     1,650

Total purchase cost =              $18,950

Supplier     S1        S2       S3    Total

Capacity  600    1050    775

Orders:

C1            600      400              1,000

C2                       650     150      800

Total       600   1,050     150    1,800

Interpersonal conflict between team members is most likely to surface and become contentious during the ________ phase of team development

Answers

Answer:

Storming

Explanation:

The storm stage is the team development phase where there is the greatest appearance of conflicts, due to the fact that in this phase there are divergences between team members in relation to their personality profiles, the role of each member on the team, team goals, etc.

This is a phase that can be problematic for the fulfillment of the team's objectives, if conflicts are not resolved there may be delays, team disruption, unproductiveness and other work-related conflicts, so it is recommended that communication be developed in this way in this phase. effective, where each member feels integrated and important for the success of working together.

Tata Motors is an Indian multinational automotive company headquartered in Mumbai and a core member of the very successful Tata Group. India is a potentially enormous market, and Tata Motors is doing well in that market. How can Tata Motors use their core competencies in doing well in India as a way to also do well in exporting

Answers

Answer: Focused and intensive competency

Explanation:

TATA has made a name in India for being one of their largest automobile used there. To maintain and increase their market globally they have to be consistent with their competency in their product. Competency is what would make them gain more global market because they are already in some countries but how durable, efficient their vehicle's are is what would make it be referred by those using it. There other products in the market but competency would be the stand-out, making them exceptional.

Oriole Industries collected $106,000 from customers in 2020. Of the amount collected, $25,600 was for services performed in 2019. In addition, Oriole performed services worth $38,100 in 2020, which will not be collected until 2021. Oriole Industries also paid $71,500 for expenses in 2020. Of the amount paid, $29,900 was for expenses incurred on account in 2019. In addition, Oriole incurred $43,400 of expenses in 2020, which will not be paid until 2021.
A. Compute 2020 cash-basis net income.
B. Compute 2020 accrual-basis net income.

Answers

Answer:

A. 2020 cash-basis net income = $34,500

B. 2020 accrual-basis net income = $33,500

Explanation:

A. Compute 2020 cash-basis net income.

Cash-basis net income is computed by deducting the cash paid from cash received in an accounting period, i.e. 2020, as follows:

2020 cash-basis net income = Cash collected in 2020 - Expenses paid in 2020 = $106,000 - $71,500 = $34,500

B. Compute 2020 accrual-basis net income.

Accrual-basis net income is computed by deducting total expenses incured in the period from the total income earned in the period regardless of whether or mot cash is paid or received in period, i.e. 2020, as follows:

2020 accrual-basis net income = Cash collected for services performed in 2020 + Service performed on account in 2020 but to be collected in 2021 - Cash paid for expenses incurred in 2020 - Expenses incurred on account in 2020 but to be paid in 2021

2020 accrual-basis net income = ($106,000 - $25,600) + $38,100 - ($71,500 - $29,900) - $43,400 = $33,500

You are taking a $6,226 loan. You will pay it back in four equal amounts, paid every year, with the first payment occurs at the end of year 5. So the first payment is 5 periods from now. Even though you did not make payments during that time interest still accrues. The annual interest rate is 11%. Calculate the amount of each annual payment to pay off the loan 4 years after you start paying it back.

Answers

Answer:

annual payment = $2,362.88

Explanation:

we must first calculate the future value of the loan at the end of year 4 = $6,226 x (1 + 11%)⁴ = $9,451.51

using the present value of an annuity formula we can determine the annual payment:

annual payment = present value of an annuity / PV annuity factor

present value of an annuity = $9,451.51PV annuity factor 11%, 4 periods = 3.1024

annual payment = $9,451.51 / 3.1024 = $2,362.88

Micro, Inc., started the year with net fixed assets of $75,675. At the end of the year, there was $97,225 in the same account, and the company's income statement showed depreciation expense of $13,555 for the year. What was the company's net capital spending for the year

Answers

Answer:

the net capital spending for the year is $35,105

Explanation:

The computation of the net capital spending for the year is given below:

Closing Balance $97,225

Add: Depreciation $13,555

Less: Opening Balance -$75,675

Assets Purchased $35,105

Hence the net capital spending for the year is $35,105

Problem 3-3 (Algo) A dry cleaner uses exponential smoothing to forecast equipment usage at its main plant. August usage was forecasted to be 46 percent of capacity; actual usage was 52 percent of capacity. A smoothing constant of .10 is used. a. Prepare a forecast for September. (Round your final answer to 2 decimal places.) b. Assuming actual September usage of 53 percent, prepare a forecast for October usage. (Round your answer to 2 decimal places.)

Answers

Answer:

A.Forecast for September=46.9

B. Forecast for October usage=47.51

Explanation:

a) preparation of the forecast for September

Forecast for September= 46 + .10 (52 − 43)

Forecast for September=46+.10(9)

Forecast for September=46+0.9

Forecast for September=46.9

Therefore Forecast for September will be 46.9

b) Preparation of the forecast for October usage

Forecast for October usage=46.9 + .10 (53-46.9)

Forecast for October usage=46.9+.10(6.1)

Forecast for October usage=46.9+0.61

Forecast for October usage=47.51

Therefore Forecast for October usage will be 47.51

Which phrase best completes the list?
Characteristics of the U.S. Economy
Free market with some government regulation
Competition between businesses encouraged
A. No centralized banking system
B. Banks owned mostly by the government
o o
Ο Ο
C. Tax rates set by private companies
D. Individuals and businesses given economic freedom

Answers

Answer:

d

Explanation:

I took the quiz

Market-share and market-size variances (continuation of 14-38). Miami Infonautics’ senior vice president of marketing prepared his budget at the beginning of the third quarter assuming a 25% market share based on total sales. Foolinstead Research estimated that the total handheld-organizer market would reach sales of 408,600 units worldwide in the third quarter. However, actual sales in the third quarter were 515,000 units.
1. Calculate the market share and market size variance for Miami Infaunotics int he third quarter of 2017.
2. Explain what happend on the market share and the market size variances.
3. Calculate the actual maket size in units that would that would let to market size variance.

Answers

Answer:

See below

Explanation:

1.

Actual Budget Inc(Dec)

Worldwide. $515,000 $408,600 $106,400

Miami infonautics $103,000 $102,150 $850

Market share 20% 25% 5%

Average contribution margin per unit

Actual = $114.82 [ $11,862,460 ÷ 103,000 units]

Budgeted = $115 [ $11,747,250 ÷ 102,150 units]

Market size. $515,000

Share gain (loss) -5%

Unit share gain (loss) ($25,750)

Budgeted composite contribution per unit $115

Market share gain(loss) ($2,961,250)

Market size vs Market budget $106,400

Budgeted market share 25%

Total $26,600

Budgeted composite contribution per unit $115

Market size variance $3,059,000

2.

Here, the actual market size of $515,000 units exceeded the budget size of 408,600 units, leading to a favorable market size variance.

3. With regards to the above, Miami infonautics share of the market fell 25% to 20%, but the substantially favorable market size variance exceeded the unfavorable market share variance resulting in a favorable sales quantity variance overall.

Sales quantity variance $97,250 F

= Market share variance

$2,961,250 U - Market size variance

$3,059,000 F

____________________ will not cause a shift of the AS curve in a Keynesian framework.

Answers

Answer:

C. Changes in output prices

Explanation:

Keynesian economics is a theory that deals in macroeconomics and its impact on the output, employment, inflation, etc, In this it give rise to the government expenditure and less taxes in order to stimulate the demand and pull out the global economy

If there is any changes with respect to the output prices so the shift of the AS curve would not be resulted

So the option c is correct

Indicate whether it would appear on the statement of cash flows as a(n): operating activity, investing activity, or financing activity.

a. Cash receipts from customers. choose a type of business activity
b. Issuance of common stock for cash. choose a type of business activity
c. Payment of cash dividends. choose a type of business activity
d. Cash purchase of equipment. choose a type of business activity
e. Cash payments to suppliers. choose a type of business activity
f. Sale of old machine for cash. choose a type of business activity

Answers

Answer:

a. Cash receipts from customers.

Statement of cash flows: Operating activity

b. Issuance of common stock for cash

Statement of cash flows: Financing activity

c. Payment of cash dividends

Statement of cash flows: Financing activity

d. Cash purchase of equipment

Statement of cash flows: Investing Activities

e. Cash payments to suppliers

Statement of cash flows: Operating activities

f. Sale of old machine for cash

Statement of cash flows: Investing Activities

Matrix management creates an environment in which the unity-of-command principle is strictly followed. is a collection of independent, mostly single-function firms that collaborate to produce a good or service. is composed of dual reporting relationships in which some employees report to two superiors. involves holding employees together by contracts that stipulate results expected, rather than by hierarchy and authority. results in a centralized decision-making system.

Answers

Answer:

Matrix management

is composed of dual reporting relationships in which some employees report to two superiors.

Explanation:

Matrix management is a cross-functional work team in which there is dual or multiple management accountability and responsibility.  Team members come from different units to achieve a specific business goal or purpose.  It is characterized by two chains of command.  One chain of command is functional, and the other chain of command is patterned along project, product, client, and other lines.

A staff accountant at Ysidro Fabricators in San Ysidro, CA has provided data concerning its operations for July. The beginning balance in the raw materials account was $20,500 and the ending balance was $37,000. Raw materials purchases during the month totaled $64,000. Manufacturing overhead cost incurred during the month was $111,500, of which $2,100 consisted of raw materials classified as indirect materials. The direct materials cost for July was:

Answers

Answer:

$88,900

Explanation:

Particulars                                               Amount

Manufacturing OH Cost                        $109,400 (111,500-2100)              

Add: Ending materials                           $64,000

                                                               $173,400

Less: Beginning materials  $20,500

Materials purchased           $64,000    $84,500

Direct material cost                              $88,900

Skysong Inc., a provider of consulting services, was founded on October 1, 2022. At the end of the first month of operations, the company decided to prepare an income statement, retained earnings statement, and balance sheet using the following information. Accounts payable $ 3,700 Supplies $ 2,650 Interest expense 350 Supplies expense 360 Equipment (net) 48,000 Depreciation expense 260 Salaries and wages expense 2,800 Service revenue 19,540 Bonds payable 21,800 Salaries and wages payable 590 Unearned service revenue 4,190 Common stock 9,900 Accounts receivable 1,450 Interest payable 150 Cash 4,000 Using the information, answer the following questions.
Required:
a. Prepare an income statement for the month of October 2022.
b. Prepare a retained earnings statement for the month of October 2022.
c. Prepare a balance sheet as of October 31, 2022.

Answers

Answer:

a. Income Statement for the month of October 2022

Revenue:

Service revenue                               $19,540

Expenses:

Salaries and Wages         $2,800

Supplies Expenses           $360

Depreciation Expenses    $260

Interest Expenses             $350  

Total Expenses                                  $3,770

Net Income                                        $15,770

b. Retained earnings statement for the month of October 2022

Retained Earnings, October 1, 2020      $0

Add: Net Income                                      $15,770

Retained Earnings, October 31, 2020  $15,770

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