Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $17 million, and production and sales will require an initial $3 million investment in net operating working capital. The company's tax rate is 35%. What is the initial investment outlay? Write out your answer completely. For example, 2 million should be entered as 2,000,000. $ The company spent and expensed $150,000 on research related to the new project last year. Would this change your answer? -Select- Rather than build a new manufacturing facility, the company plans to install the equipment in a building it owns but is not now using. The building could be sold for $1.5 million after taxes and real estate commissions. How would this affect your answer? The project's cost will -Select- .

Answers

Answer 1

Answer:

What is the initial investment outlay?

initial investment = $17 million (manufacturing equipment) + $3 (increase in net working capital) = $20,000,000

The company spent and expensed $150,000 on research related to the new project last year. Would this change your answer?

No, this will not change the answer because that was a sunk cost that doesn't affect the project's initial outlay.

Rather than build a new manufacturing facility, the company plans to install the equipment in a building it owns but is not now using. The building could be sold for $1.5 million after taxes and real estate commissions. How would this affect your answer?

If the company decides to do this, it will increase the project's initial outlay by $1,500,000 which is the opportunity cost of selling the building.


Related Questions

Portfolio managers pick stocks for their clients’ portfolios based on the investment objective of the portfolio and several other factors. One key consideration is each stock’s contribution to portfolio risk and its statistical relationship with the portfolio’s other stocks. Based on your understanding of portfolio risk, identify whether each statement is true or false.

Answers

Answer:

False True True False

Explanation:

First one is false because diversification reduces risk because it divides the risk amongst different securities. The portfolio risk will therefore be lower than the average of all stocks' standard deviations.

Second one is true because unsystematic risk is risk that will come with the type of stock or security purchased. It is usually referred to as diversifiable risk because using negatively correlated stocks can help diversify this risk.

Third one is True because the portfolio's risk when diversified is indeed likely to be smaller than the average of all stocks' standard deviation.

Fourth one is false because portfolio risk is reduced if stock that are negatively correlated are put into a portfolio because it means that when one stock is not doing so well, the other being negatively correlated, will be doing fine.

When using the cost of production report to analyze the change in direct materials cost per equivalent unit compared to conversion cost per equivalent unit, an investigation may reveal that direct materials costs:_____.
a. will never decrease due to the way the cost is calculated.
b. will never increase due to the way the cost is calculated.
c. may increase or decrease between periods, depending on the fluctuation of the cost of the direct materials.
d. will only increase if conversion costs increase as well.

Answers

Answer:

The correct answer is the option C: May increase or decrease between periods, depending on the fluctuation of the cost of the direct materials.

Explanation:

To begin with, in the field of business a manager or an account would perfectly know that when using the cost of production report with the purpose to analyze the change in direct materials costs per equivalent unit compared to conversion cost per unit the investigation will reveal that the direct material costs may increase or decrease between periods, depending on the fluctuation of the cost of those materials due to the fact that the fluctuation mentioned will arise if the company starts using more direct material in the production so that means that the volumen will increase as well as the costs of it

Marigold Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,600, direct labor $12,360, and manufacturing overhead $16,480. As of January 1, Job 49 had been completed at a cost of $92,700 and was part of finished goods inventory. There was a $15,450 balance in the Raw Materials Inventory account.
During the month of January, Marigold Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $125,660 and $162,740, respectively. The following additional events occurred during the month.
1. Purchased additional raw materials of $92,700 on account.
2. Incurred factory labor costs of $72,100. Of this amount $16,480 related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirect materials $17,510; indirect labor $20,600; depreciation expense on equipment $12,360; and various other manufacturing overhead costs on account $16,480.
4. Assigned direct materials and direct labor to jobs as follows.
Job No. Direct Materials Direct Labor
50 $10,300 $5,150
51 40,170 25,750
52 30,900 20,600
(a) Calculate the predetermined overhead rate for 2020, assuming Lott Company estimates total manufacturing overhead costs of $840,000, direct labor costs of $700,000, and direct labor hours of 20.000 for the year.
(b) Open job cost sheets for Jobs 50. 51. and 52. Enter the January 1 balances on the job cost sheet for Job 50.
(c) Prepare the journal entries to record the purchase of raw materials, the factory labor costs incurred, and the manufacturing overhead costs incurred during the month of January.
(d) Prepare the journal entries to record the assignment of direct materials, direct labor, and manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). Post all costs to the job cost sheets as necessary.
(e) Total the job cost sheets for any job(s) completed during the month. Prepare the journal entry (or entries) to record the completion of any job(s) during the month.
(f) Prepare the journal entry (or entries) to record the sale of any job(s) during the month.
(g) What is the balance in the Finished Goods Inventory account at the end of the month? What does this balance consist of?
(h) What is the amount of over- or underapplied overhead?

Answers

Answer:

Marigold Company

a) Calculation of the predetermined overhead rate for 2020, assuming (Lott) Marigold Company estimates total manufacturing overhead costs of $840,000, direct labor costs of $700,000, and direct labor hours of 20,000 for the year.

Predetermined overhead rate, based on the direct labor costs:

= Total manufacturing overhead costs/direct labor costs

= $840,000/$700,000 = $1.20 per direct labor cost

Predetermined overhead rate, based on the direct labor hours:

= Total manufacturing overhead costs/direct labor hours

= $840,000/20,000 = $4.20 per direct labor hour

b) Job Cost Sheets

                                             Job 50        Job 51         Job 52

Beginning inventory          $49,440

Direct materials                    10,300       $40,170        $30,900

Direct labor                            5,150         25,750          20,600

Manufacturing overhead      6,180         30,900          24,720

Finished goods inventory $71,070      $96,820                      $76,220

c) Journal Entries:

i) Purchase of raw materials:

Debit Inventory $92,700

Credit Accounts Payable $92,700

To record the purchase of raw materials.

ii) Factory labor costs incurred:

Debit Factory labor costs $72,100

Credit Employer Payroll Taxes Expense $16,480

Credit Factory Salary and Wages $55,620

To record factory labor costs.

iii) Manufacturing overhead costs incurred:

Debit Manufacturing overhead $66,950

Credit Inventory for indirect materials $17,510

Credit Salaries & Wages $20,600

Credit Equipment Depreciation $12,360

Credit Accounts Payable $16,480

To record manufacturing overhead

d) Journal Entries:

Debit Job 50 $21,630

Credit Direct materials $10,300

Credit Direct labor $5,150

Credit Manufacturing overhead $6,180

To allocate manufacturing costs to job 50.

Debit Job 51 $96,820

Credit Direct materials $40,170

Credit Direct labor $25,750

Credit Manufacturing overhead $30,900

To allocate manufacturing costs to job 51.

Debit Job 52 $76,220

Credit Direct materials $30,900

Credit Direct labor $20,600

Credit Manufacturing overhead $24,720

To allocate manufacturing costs to job 52.

e) Journal Entries:

Debit Finished Goods Inventory $167,890

Credit Job 50 $71,070

Credit Job 51 $96,820

To record finished goods from Jobs 50 and 51

f) Journal Entries for Sale of Jobs:

Debit Accounts Receivable $288,400

Credit Sales Revenue $288,400

To record the sale of Jobs 49 and 50 on account.

Debit Cost of goods sold $163,770

Credit Finished goods inventory $163,770

To record the cost of Jobs 49 and 50 sold.

g) Balance in Finished Goods Inventory account:

Beginning balance: Job 49 $92,700

Debit Job 50                         $71,070

Debit Job 51                        $96,820

less: cost of jobs sold        $163,770

Ending balance: Job 51      $96,820

The balance consists of Job 51 which had been completed but not sold.

h) Amount of over-or underapplied overhead:

Actual total overhead        $66,950

Total overhead applied        61,800  

Underapplied overhead     $5,150                  

Explanation:

a) Data:

1. Job 50 in process:

Beginning Job 50 in process:

Direct materials               $20,600

Direct labor                       $12,360

Manufacturing overhead $16,480

Total                                 $49,440

2. Jan. 1 Job 49 completed at $92,700 (part of finished goods inventory)

3. Beginning raw materials inventory = $15,450

4. Production, Completion, and Sales of Jobs:

Production started on Jobs 51 and 52

Completed Jobs 50 and 51

Sold on account:

Job 49  $125,660

Job 50  $162,740

5. Additional events:

Purchase of raw materials on account = $92,700

Factory labor costs of $72,100 ($16,480 of it, employer payroll taxes)

Manufacturing overhead costs:

Indirect materials                            $17,510

Indirect labor                                $20,600

Equipment Depreciation              $12,360

Other manufacturing overheads $16,480 (on account)

Total manufacturing overhead   $66,950

6. Allocation of direct materials and labor to jobs:

Job No.     Direct Materials    Direct Labor

50                  $10,300             $5,150

51                     40,170             25,750

52                  30,900             20,600

                    $81,370            $51,500

6. Job costing system accumulates and allocates Marigold Company's direct material, labor, manufacturing overhead costs to jobs based on their usage of the various resources in the production of goods and services.

yle Co. has $1.1 million of debt, $3 million of preferred stock, and $1.2 million of common equity. What would be its weight on common equity

Answers

Answer:

0.22

Explanation:

Calculation for the weight on common equity

Using this formula

Weight of Common equity = Common Equity/(Debt + Preferred Equity+Common Equity)

Where,

Common Equity=1.2

Debt =1.1

Preferred Equity=3

Let plug in the formula

Weight of common equity = 1.2/(1.1+ 3+ 1.2)

Weight of common equity=1.2/5.3

Weight of Common Equity=0.22

Therefore the weight on common equity will be 0.22

Beth works for a large corporation that has managers for every department who employees report to. Which type of management decision making system does this company use

Answers

Answer:

vertical decision-making system

Explanation:

Based on this scenario it seems that Beth's company is using a vertical decision-making system. This is a hierarchical organization system in which management passes information from the top of the hierarchy/pyramid down to the bottom. This system is made up of many layers, while each layer has upper management that supervises the employees at that level. Such as in this case where the employees are reporting to the managers within their departments.

Trade-off Theory. Smoke and Mirrors currently has EBIT of $25,000 and is all-equity financed. EBIT is expected to stay at this level indefinitely. The firm pays corporate taxes equal to 35 percent of taxable income. The discount rate for the firm"s projects is 10 percent.
a. What is the market value of the firm?
b. Now assume the firm issues $50,000 of debt paying interest of 6 percent per year and uses the proceeds to retire equity. The debt is expected to be permanent. What will happen to the total value of the firm (debt plus equity)?

Answers

Answer:

A. $162,500

B. $17,500

Explanation:

Data

EBIT = $25,000

Tax rate = T = 35%

Discount Rate = r = 10%

Requirement A:  Market Value

The Market value of the firm can be calculated by using the following formula

Market Value =  [tex]\frac{EBIT(1-T)}{r}[/tex]

Market Value = [tex]\frac{25000(1-0.35)}{0.1}[/tex]

Market Value = $162,500

Requirement B: Total value of firm If issues $50,000 of debt paying 6% interest

The market value of the firm increases by the present value of the Interest tax shield

The present value of tax shield = Amount of debt x Tax Rate

The present value of tax shield = $50,000 x 35%

The present value of tax shield = $17,500

The market value of the firm will be increased by $17,500

On August 31, 2021, the general ledger of The Dean Acting Academy shows a balance for cash of $7,914. Cash receipts yet to be deposited into the checking account total $3,308, and checks written by the academy but not yet processed by the bank total $1,395. The company's balance of cash does not reflect a bank service fee of $32 and interest earned on the checking account of $43. These amounts are included in the balance of cash of $6,012 reported by the bank as of the end of August. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, 2021.

Answers

Answer: Reconciled ending balance of cash=$7,925

Explanation:

Bank reconciliation is used by companies to reconcile thier ledger balances and that of their bank's balance and to make necessary adjustments where necessary.

  BanK Reconcillation on August 31,     2021

Bank cash balance                    $6,012

add

Deposit outstanding                 +$3,308

deduct :

Checks outstanding                  -$1,395

Bank  balance reconciliation     $7,925

Company's book balance             $7,914.

add:

interest earned                             +  $43

deduct:

service fees                                    -  $32

Company balance reconciliation   $7,925

The following information is taken from the financial statements of Clybourn Company for the current year: Current Assets $ 400,000 Total Assets 895,000 Cost of Goods Sold 655,000 Gross Profit 205,000 Net Income 125,000 The gross profit percentage for the current year rounded to the nearest whole percent is closest to:

Answers

Answer: 24%

Explanation:

The following information can be gotten from the question:

Current Assets = $ 400,000

Total Assets = 895,000

Cost of Goods = Sold 655,000

Gross Profit = 205,000

Net Income = 125,000

Gross profit percent will be:

Gross profit/(Gross profit + cost of goods sold) × 100

= 205,000/(205,000 + 655,000) × 100

= 205000/860,000 × 100

= 23.8%

= 24%

Dalrymple Bay Coal Terminal, a coal-handling facility and export terminal in Queensland, Australia, has issued triple-A rated bonds for $680 million in Australian dollars. The bonds will be used to refinance existing bank debt caused by the acquisition of eases from the Queensland government in 2002. The Commonwealth Bank of Australia acted as investment bankers to the transaction. This means the Commonwealth Bank of Australia:

Answers

Answer: B. Bought the bonds from Dalrymple and sold them to the public

Explanation:

Investment Banks help companies issuing new securities in diverse ways to ensure that they raise the capital they are looking for. Some of the ways they help include; underwriting securities and market research. The main way they help companies issuing new securities however, is underwriting.

With Underwriting, the Investment Bank usually buys all the securities on offer from the Issuing company, then sells them at higher price to make a profit. This helps the issuing company because they get to sell all or most of their securities so it reduces uncertainty.

The Commonwealth Bank of Australia therefore bought the bonds from Dalrymple and sold them to the public.

Vibrant Company had $970,000 of sales in each of three consecutive years 2016–2018, and it purchased merchandise costing $535,000 in each of those years. It also maintained a $270,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of year 2016 that caused its year-end 2016 inventory to appear on its statements as $250,000 rather than the correct $270,000.
1. Determine the correct amount of the company’s gross profit in each of the years 2016–2018.
2. Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of the years 2016−2018.

Answers

Answer:

Explanation:

From the give information; we are to:

1. Determine the correct amount of the company’s gross profit in each of the years 2016–2018.

The correct amount of the company's gross profit in each of the years 2016 - 2018 can be seen as computed in the table below.

                     VIbrant Company Income statement

                             2016                      2017                    2018

Sales                   970,000                970,000              970,000

-

Cost of good  

sold:                  

Beginning           270,000                270,000               270,000        

Inventory

+

Purchase             535,000               535,000               535,000      

The cost of good

available for sale   805000                 805000                 805000  

is:                      

-

Ending Inventory    270,000                270,000               270,000      

Cost of good sold   535,000               535,000               535,000

Gross Profit              435 000               435000                435000      

N:B ;

Gross Profit = Sales - Cost of good sold

Gross Profit = 970000- 535000

Gross Profit = 435000

2. Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of the years 2016−2018.

For 2016; the comparative income statement is computed as follows:

                                        Debit           Credit

Sales                                                   970000

Less:(-)

Cost of good sold

Beginning Inventory       270000

Add Purchase                 535000

Cost of goods available  805000

for sale

Less (-)

Ending Inventory              250000

Cost of good sold                               555000

Gross profit                                          415000

For 2017; the comparative income statement is computed as follows:

                                        Debit           Credit

Sales                                                   970000

Less:(-)

Cost of good sold

Beginning Inventory       250000

Add Purchase                 535000

Cost of goods available  785000

for sale

Less (-)

Ending Inventory              270000

Cost of good sold                               515000

Gross profit                                          455000

For 2018; the comparative income statement is computed as follows:

                                        Debit           Credit

Sales                                                   970000

Less:(-)

Cost of good sold

Beginning Inventory       270000

Add Purchase                 535000

Cost of goods available  805000

for sale

Less (-)

Ending Inventory              270000

Cost of good sold                               535000

Gross profit                                          435000

Proposal preparation is completed by Select one: a. a large team for a simple project. b. a single person when proposing a multimillion-dollar project. c. a proposal manager regardless of the project size. d. one or more people depending upon the requirements of the proposal.

Answers

Answer:

d. one or more people depending upon the requirements of the proposal.

Explanation:

A proposal can be defined as a plan or suggestion which are formally written to present an idea to an individual or organization for consideration.

Proposal preparation is completed by one or more people depending upon the requirements of the proposal.

In order to prepare a good proposal, it is very important to make it as formal as possible. The content of the proposal is strictly based on what the initiators wants to do or achieve, as well as how they wish to achieve.

Hence, a proposal is only prepared with regard to the requirements of the proposal and the number of people involved. Proposals are usually used by project managers or contractors seeking for a contract.

A 30 year $1,000 par 4 3/4% Treasury Bond is quoted at 95-11 - 95-15. The note pays interest on Jan 1st and Jul 1st. A customer buys 1 bond at the ask price. What is the current yield, disregarding commissions

Answers

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%

Nicolas Enterprises sells a product for $67 per unit. The variable cost is $33 per unit, while fixed costs are $231,200. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $73 per unit.

Answers

Answer:

a)Break-even point = 6,800  units

b) Break-even point =5780  units

Explanation:

Break-even point is the level of activity that achieves no profit or loss. At this level profit is zero because the the total revenue is equal to total cost.

The break-even point is calculated as  

Units to achieve target profit = (Total general fixed cost for the period)/ contribution per unit

Contribution per unit = Selling Price - Variable cost

Contribution per unit = 67 - 33 = 34

Fixed cost =231,200

So the units requited to achieve break-even point:

Break-even point = 231,200/34  = 6,800  units

Break-even point = 6,800  units

b) If the selling price wete increased to 73

The break-even point = 231,200/ (73- 33) = 5,780  units

Break-even point =5780  units

A. You've just joined the investment banking firm of Dewey, Cheatum, and Howe. Theyve offered you two different salary arrangements. You can have $95,000 per year for he next two years, or you can have $70,000 per year for the next two years, along with a $45,000 signing bonus today. The bonus is paid immediately, and the salary is paid at the end of each year. If the interest rate is 10 percent compounded monthly, which do you prefer?
B. Consider a firm with a contract to sell an asset for $165,000 four years from now. The asset costs $94,000 to produce today. Given a relevant discount rate on this asset of 13 percent per year, will the firm make a profit on this asset?
C. You borrow $50,000 5 year loan to make renovations to a house. The interest rate on this loan is 8% per year. The loan calls for equal monthly payments.
C.1. What is the monthly payment on this loan?
C.2. When you make the third payment, how much of the payment is interest?
C.3. How much is principal?

Answers

Answer:

sorry

Explanation:

i need to answer questions but my best guest would be b

Equivalent Units of Conversion Costs The Filling Department of Eve Cosmetics Company had 4,000 ounces in beginning work in process inventory (60% complete). During the period, 46,000 ounces were completed. The ending work in process inventory was 8,000 ounces (25% complete).
What are the total equivalent units for conversion costs? If required, round to the nearest unit.

Answers

Answer:

The total equivalent units for conversion cost = 45,600 ounces

Explanation:

Let us arrange the information in a tabular form to help in solution:

                                                                        % conversion    equivalent units

Particulars                              whole units       completed      for conversion

Beginning inventory in process      4,000                  40%                    1,600

started and completed in period  42,000**               100%                42,000

completed . . . . . . . . . . . . . . . . . .    46,000                                           43,600

ending inventory in process . . . .    8,000                   25%                   2,000

Total units to be assigned cost    54,000                                           45,600                      

Therefore, the total equivalent units for conversion cost = 45,600 ounces

**Note the inventory that was started and completed within the period is the inventory that was 100% completed within the period and it is the difference between the total inventory completed within the period and the beginning inventory, and this is represented as:

46,000 - 4,000 = 42,000 ounces.

The following events occur for Morris Engineering during 2018 and 2019, its first two years of operations.
February 2, 2018 Provide services to customers on account for $32,600.
July 23, 2018 Receive $22,500 from customers on account.
December 31, 2018 Estimate that 25% of uncollected accounts will not be received.
April 12, 2019 Provide services to customers on account for $45,600.
June 28, 2019 Receive $6,000 from customers for services provided in 2018.
September 13, 2019 Write off the remaining amounts owed from services provided in 2018.
October 5, 2019 Receive $40,500 from customers for services provided in 2019.
December 31, 2019 Estimate that 25% of uncollected accounts will not be received.
1. Record transactions for each date. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2. Post transactions to the following accounts: Cash, Accounts Receivable, and Allowance for Uncollectible Accounts.
3. Calculate the net realizable value of accounts receivable at the end of 2018 and 2019.

Answers

Answer:

1)

February 2, 2018 Provide services to customers on account for $32,600.

Dr Accounts receivable 32,600

    Cr Service revenue 32,600

July 23, 2018 Receive $22,500 from customers on account.

Dr Cash 22,500

    Cr Accounts receivable 22,500

December 31, 2018 Estimate that 25% of uncollected accounts will not be received.

Dr Dad debt expense 2,525

    Cr Allowance for doubtful accounts 2,525

April 12, 2019 Provide services to customers on account for $45,600.

Dr Accounts receivable 45,600

    Cr Service revenue 45,600

June 28, 2019 Receive $6,000 from customers for services provided in 2018.

Dr Cash 6,000

    Cr Accounts receivable 6,000

September 13, 2019 Write off the remaining amounts owed from services provided in 2018.

Dr Allowance for doubtful accounts 4,100

    Cr Accounts receivable 4,100

October 5, 2019 Receive $40,500 from customers for services provided in 2019.

Dr Cash 40,500

    Cr Accounts receivable 40,500

December 31, 2019 Estimate that 25% of uncollected accounts will not be received.

Dr Dad debt expense 2,850

    Cr Allowance for doubtful accounts 2,850

Allowance for doubtful accounts = $1,575 (to cancel debit balance) + [($45,600 - $40,500) x 25%] = $1,575 + $1,275 = $2,850

2)

            Cash                                Accounts receivable

Debit               Credit                   Debit               Credit

22,500                                         32,600

6,000                                                                   22,500

40,500                                         45,600

69,000                                                                 6,000

                                                                             4,100

                                                                             40,500

                                                     5,100

Allowance for doubtful accounts

Debit               Credit  

                       2,525

4,100

                       2,850

                       1,275

3) net realizable value of accounts receivable = $5,100 - $1,275 = $3,825

a. Using the midpoint method, what is the price elasticity of demand from a price of $5.00 to a price of $4.00 per pack of 100 screws

Answers

Answer:

-9.09

Explanation:

Calculation for the price elasticity of demand

Using the midpoint method.

First step is to find the Demand

Demand = (120 - 0)/((120 + 0)/2) = 2

Demand =120/60

Demand =2

Second step is to find the Price

Price = (4 - 5)/((4 + 5)/2)

Price=- 1/4.5

= -0.22

Now let calculate for the price elasticity of demand

Using this formula

Price elasticity of demand =Demand/Price

Let plug in the formula

Price elasticity of demand=2/-0.22

Price elasticity of demand = -9.09

Therefore Using the midpoint method, the price elasticity of demand will be -9.09

you're prepared to make monthly payments of $190, beginning at the end of this month, into an account that pays 7 percent interest compounded onthly. How many payments will you have made when your account balance reaches $20,000?

Answers

Answer:

Number of payments required is 82

Explanation:

Enter the following data in  the Financial Calculator and find n, the number of payments required.

Pv = $0

Pmt = $190

P/yr = 12

r = 7%

Fv = $20,000

n = ?

Thus n = 82.3084

Conclusion :

Number of payments required is 82

During 2025, Saul Company discovered that the ending inventories reported on its financial statements were incorrect by the following amounts: 2023 $60,000 understated 2024 $75,000 understated Prior to any adjustments for these errors and ignoring income taxes, 2024 Net Income would be:

Answers

Answer:

$15,000 overstated

Explanation:

       Item                                             Amount

Inventories over stated in 2024      $75,000

Less: Under stated in 2023              ($60,000)

Inventories over stated in 2025     $15,000

Overstated inventory means, cost of goods will be understated in income statement. so net income will show as overstated. it means retained earnings also overstated by $15,000

Wren Pork Company uses the relative market value method/Value basis method of allocating joint costs in its production of pork products. Relevant information for the current period follows:
Product Pounds Price/lb.
Loin chops 3,080 $5.40
Ground 10,200 2.20
Ribs 4,120 5.05
Bacon 6,160 3.70
The total joint cost for the current period was $45,400. How much of this cost should Wren Pork allocate to Loin chops?
A. $0.
B. $6,443.
C. $9,134.
D. $11,350.
E. $45,400.

Answers

Answer:

C. $9,134

Explanation:

Product              Pounds     Price/Ib      Total Value

Loin chops          3,080        $5.40           $16,632

Ground                10,200       $2.20           $22,440

Ribs                      4,120         $5.05           $20,806

Bacon                   6,160         $3.70           $22,792

                                                                    $82,670  

The Total Joint cost = $45,400

Hence Joint cost to Lopin chops = $45,400 * $16,632 / $82,670

Joint cost to Lopin chops = $9,134

The difference between Karson's behavior at the end of the 12 weeks versus the promise to cure Karson of ADHD can be described as the measure of the:________.
A. expectation interest.
B. reliance interest.
C. restitution interest.
D. All of these are correct.

Answers

Answer:

A. Expectation interest.

Explanation:

Expectation interest is explained as the party of interest being in a good position in the point or financial angles during a business dealing. Here he/she is said to have a good stance of a deal or a contract been contacted for. Sometimes, it is seen to be triggered by net profits and losses less any costs or losses, which are sometimes tool in weighing the reasonable measure of damages. Therefore, when no contracts are be agreed on, determination must be made as to whether or not one party benefited from contact with the other party.

Assume that England and Spain each has 40 labor hours available. Originally, each country divided its time equally between the production of cheese and bread. Now, each country spends all its time producing the good in which it has a comparative advantage. As a result, the total output of cheese increased by:____________
a. 15
b. 20
c. 25
d. 40

Answers

Answer: a. 15

Explanation:

Given;

Labour hours available to each nations.

England = 40 labour hours.

Spain = 40 labour hours.

Solution:

Total production of bread in 40 labour hours for each nation from the table is 15.

England = 10

Spain = 5

Since both nations decided to focus on their strength where they pose comparative advantage, the production of cheese would increase by 15. As this is the amount of bread produced in that time frame of 40 labour hours.

For any economy, the "scarcity" problem simply means that the available free resources are "not enough" to produce all goods and services required to satisfy the unlimited human wants.

a. True
b. False

Answers

This is false good luck

Answer:

Your correct answer for this is False.

Explanation:

There is no way that it could possibly be True.

Playtown Corporation purchased 75 percent of Sandbox Corporation common stock and 40 percent of its preferred stock on January 1, 20X6, for $270,000 and $80,000, respectively. At the time of purchase, the fair value of the common shares of Sandbox held by the noncontrolling interest was $90,000. Sandbox's balance sheet contained the following balances:

Preferred Stock ($10 par value) $200,000
Common Stock ($5 par value) 150,000
Retained Earnings 210,000
Total Stockholders' Equity $560,000

Required
Give the eliminating entries needed to prepare a consolidated balance sheet immediately after Clayton purchased the Topple shares.

Answers

Answer:

Elimination Journal.

Retained  Earnings $210,000 (debit)

Common Stock $ 150,000 (debit)

Investment in Sandbox Corporation $270,000 (credit)

Non-Controlling Interest  $90,000 (credit)

Explanation:

When dealing with consolidation of Financial Statements, the Equity and Retained Earning in the Subsidiary has to be eliminated from the records whilst the Investment in Subsidiary and the Non-Controlling Interest in Subsidiary are recognized.

Elimination of the common items in consolidation is done by the use of Pro-forma Journals.

Goodwill or Gain on Bargain Purchase are also recognized on the date of acquisition of subsidiary.

Goodwill is the excess of Purchase Price and Non-Controlling interest over the Net Assets Acquired.While Gain on Bargain Purchase is the excess of Net Assets Acquired over Purchase Price and Non-Controlling interest.

Elimination Journal.

Retained  Earnings $210,000 (debit)

Common Stock $ 150,000 (debit)

Investment in Sandbox Corporation $270,000 (credit)

Non-Controlling Interest  $90,000 (credit)

T-Shirt Enterprises is selling in a purely competitive market. It is producing 3,000 units, selling them for $2.00 each. At this level of output, the average total cost is 2.50 and the average variable cost is $2.20. Based on these data, the firm should

Answers

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

The following are typical disclosures that would appear in the notes accompanying financial statements. For each of the items listed, indicate where the disclosure would likely appear—either in (A) the significant accounting policies note or (B) a separate note.
1. Inventory costing method A
2. Information on related party transactions _____
3. Composition of property, plant, and equipment _____
4. Depreciation method _____
5. Subsequent event information _____
6. Measurement basis for certain financial instruments _____
7. Important merger occurring after year-end _____
8. Composition of receivables _____

Answers

Answer:

The answer is:.

1. A

2. B

3. B

4. A

5. B

6. A

7. B

8. B

Explanation:

The significant accounting policy note is a section of the footnotes found in the financial statements. It states and explains the key policies the firm has adopted in preparing its financial statement.

Separate note is also found in the footnotes. It details the additional information about a firm's operations and financial position.

1. A

2. B

3. B

4. A

5. B

6. A

7. B

8. B

Which of the following are functions of the Federal Reserve? Check all that apply. Maintaining federal government checking accounts and gold Maintaining and circulating currency Ensuring all banks make a profit Making a profit for the federal government Being the lender of last resort for banks

Answers

Answer:

1. Maintaining federal government checking accounts and gold.

2. Maintaining and circulating currency.

3. Being the lender of last resort for banks

Explanation:

The Federal Reserve System (the 'Fed) was created by the Federal Reserve Act, passed by Congress in 1913. The Fed began operations in 1914. It was founded by President Woodrow Wilson under the Federal Reserve Act, which was aimed at backing each banks in order to put a definitive end to the bank panics of the 1800s.

The following are functions of the Federal Reserve;

1. Maintaining federal government checking accounts and gold.

2. Maintaining and circulating currency.

3. Being the lender of last resort for banks.

Additionally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America and seven (7) board of governors.

Activity-Based Costing: Factory Overhead Costs
The total factory overhead for Bardot Marine Company is budgeted for the year at $1,039,600, divided into four activity pools: fabrication,, $448,000; assembly, $180,000; setup, $222,600; and inspection, $189,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows:
Fabrication Assembly Setup Inspection
Speedboat 7,000 dlh 22,500 dlh 50 setups 88 inspections
Bass boat 21,000 7,500 370 612
28,000 dlh 30,000 dlh 420 setups 700 inspections
Each product is budgeted for 5,000 units of production for the year.
a. Determine the activity rates for each activity.
Fabrication $ per direct labor hour
Assembly $ per direct labor hour
Setup $ per setup
Inspection $ per inspection
b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar.
Speedboat $ per unit
Bass boat $ per unit

Answers

Answer:

Instructions are below.

Explanation:

Giving the following information:

Estimated factory overhead:

fabrication, $448,000

assembly, $180,000

setup, $222,600

inspection, $189,000

Fabrication Assembly Setup Inspection

Speedboat 7,000 dlh 22,500 dlh 50 setups 88 inspections

Bass boat 21,000 7,500 370 612

28,000 dlh 30,000 dlh 420 setups 700 inspections

Each product is budgeted for 5,000 units of production for the year.

First, we need to calculate the predetermined overhead rate for each activity using the following formula:

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

fabrication= 448,000/28,000= $16 per direct labor hour

assembly= 180,000/30,000= $6 per direct labor hour

setup= 222,600/420= $530 per setup

inspection= 189,000/700= $270 per inspection

Now, we can allocate overhead to each product line:

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

Speed boat:

Allocated MOH= 7,000*16 + 22,500*6 + 50*530 + 88*270= $297,260

Bass boat:

Allocated MOH= 21,000*16 + 7,500*6 + 370*530 + 612*270= $742,340

Finally, the unitary overhead cost:

Speed boat= 297,260/5,000= $59.45

Bass boat= 742,340/5,000= $148.47

Which of the following types of contracts does not fall within the statute of frauds? Select one: A. Contracts not performed within six months B. Contracts for the sale of goods totaling more than $500 C. Contracts for one party to pay the debt of another party if the initial party fails to pay D. Promises made in consideration of marriage E. Agreements related to an interest in land

Answers

Answer:

Correct Answer:

C. Contracts for one party to pay the debt of another party if the initial party fails to pay

Explanation:

In a business setting which exist between two parties, when there is a renegation of agreement between the parties involved by one person, then there is consequences. In a situation where the renegation of agreement was deliberate, then, fraud is said to have occurred.

Option C does not fall within the statue of fraud.

The type of contract that does not fall within the statute of fraud is when the one part agrees to pay the debt of another party.

The following are the situations where the fraud could have existed:

Contract not performed for six months. The sale of goods is more than $500.The promise is made for marriage. Agreements are to be done for land.

Therefore we can conclude that the type of contract that does not fall within the statute of fraud is when the one part agrees to pay the debt of another party.

Learn more: brainly.com/question/20421012

Because you can adapt to your audience while you are speaking, don't worry about analyzing the audience for an oral presentation.
A. True
B. False

Answers

Answer:

B. False.

Explanation:

This statement is false, due to the fact that a good oral presentation must be prepared before the presentation in accordance with all the procedures to be covered in the presentation. Therefore, the ideal is to know your audience before the presentation, so that there is a preparation aligned with their values ​​and behaviors, in order to retain the attention and interaction of the participants, which makes the presentation more interesting and effective.

Scripting the presentation also avoids possible unforeseen events, in addition to being ideal to also be open to interactions, to provide important and impactful information, to prepare supporting material such as slides, and to always practice before the presentation, to be prepared and interacted on the subject addressed.

Other Questions
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