When a multi-product plant is being operated at capacity, the products that should be emphasized are those that provide the highest contribution margin:_______.
a. ratio.
b. per sales dollar.
c. per unit of product.
d. per unit of the limited resource.

Answer:

d.3.53

Explanation:

times interest earned ratio = EBIT / interest expense

times interest earned ratio = $516,415.36 / $146,346.36 = 3.5287 ≈ 3.53

Preferred dividends are not considered interest expense.

Answer:

Jan. 10

Cash $507,00 (debit)

Common Stock $507,00 (credit)

Mar 1

Cash $566,500 (debit)

Preferred Sock $515,000  (credit)

Share Premium : Preferred Stock $51,500 (credit)

April 1

Land $91,000 (debit)

Common Stock $91,000 (credit)

May 1

Cash $420,000 (debit)

Common Stock $420,000 (credit)

Aug 1

Legal Expenses : Attorneys bill $39,500 (debit)

Common Stock $39,500 (credit)

Sept 1

Cash $80,500 (debit)

Common Stock $80,500 (credit)

Nov 1

Cash $222,000 (debit)

Preferred Sock $200,000  (credit)

Share Premium : Preferred Stock $22,000 (credit)

Explanation:

Common Stocks are at no par value:

This means that ,

1.When Common Stocks are Issued, the value is the issue price there is no share premium reserve on it.

2. For consideration paid in Common Stocks, value of stocks would be the same as the cost at initial recognition. For example the Purchase of Land on April 1. Initial recognition is at Asking Price of $91,000. Hence common stocks are issued at $91,000.

Preference Stocks are at $100 par

This means that,

1.Any issue of Preference Stock made in excess of par value is accounted in the Preference Share Premium Reserve.

Answer: 39%

Explanation:

From the question, we are informed that company earned $7,605 in net income for October and that its net sales for October were $19,500.

To calculate its profit margin, we have to divide the net income by the net sales. This will be:

= 7605/19500

= 0.39

= 39%

Answer:

Certify its product under ISO 9000.

Explanation:

ISO 9000 refers to the International Organization for Standardization that focused on the management of the quality related to the product and services by complying with the documents required so that the quality could be maintained. It is to be applied with any industry whether it is small, middle or large

Therefore while making fashionable belts and accessories for women and planned to diversify it that required the ISO 9,000 and the same is to be considered

Answer:

Non-piracy.

Explanation:

If a pharmaceutical research firm prohibits the employees who leave the firm from soliciting business from former customers or clients for a period of two years. This best exemplifies the non-piracy clause.

A non-piracy clause is a legal framework which provides protection for companies from an ex employee who has left. This clause states that ex employees are prohibited from soliciting business from former customers or clients either directly or indirectly for a period of two years.

For instance, if Joyce works for XYZ pharmaceutical company that uses a non-piracy clause and later dropped a resignation letter or was laid off for a disciplinary action, she's prohibited from taking contracts from XYZ' customers for a period of two (2) years.

Answer:

April 29,

DR Accumulated Depreciation - Delivery Van $1,760  

CR Cash  $1,760

(To record repair of van)

April 29,

DR Delivery Van $52  

CR Cash  $52

(To record installation of GPS system in Van)

Explanation:

The transmission being faulty in the Van is part of the depreciation of the van and so when it is fixed, it reduces the depreciation of the van. The amount needs to be debited to the Accumulated Depreciation Account to signal that it is a reduction.

Installing a new GPS in a Van is an additional benefit to the van that will last for a period of more than a year hence it should be capitalised and added to the cost of the Delivery Van.

Answer:

But if they both work together in a way that Alpha produces only apples Beta produces only oranges then they would benefit from trade.

Explanation:

Then alpha should produce only 9 apples an hour, while Beta can produce either 16 oranges or 4 apples an hour.

If Alpha produces oranges there will be a loss because he produces less oranges. But Beta 's choice will not affect the trade.

There are no incentives for Beta to specialize and trade with Alpha.

But if they both work together in a way that Alpha produces only apples Beta produces only oranges then they would benefit from trade.

Answer: a. I, II, and III only

Explanation:

The exercise price refers to the amount that the person who buys the call option will get to buy the underlying stock at. If this price is high, the profit from buying the stock at maturity will be less so the value of the listed call option reduces.

As the contract approaches maturity, the value will decrease because it will be less volatile as it approaches maturity.

The purpose of buying a call option is so that a profit can be made if the underlying stock increases in value. If the stock decreases in value, the allure of the call option decreases so therefore will the value.

A call bond option is termed as the option that implies the bondholder the right to purchase the bonds at the prevailing price in the market. A buyer of a bond call option in the secondary market forecasts a drop in investment substantial rise in bond prices.

The correct option is a. I, II, and III only

 Option a. I, II, and III only is correct because The contract value will decline as it reaches maturation because it will become less unpredictable.

The goal of purchasing a call option is to benefit if the price of the underlying stock rises. The attractiveness of the callable bond falls as the price of bitcoin declines, and the worth of the call option reduces as well.

The exercise price is the price where the individual who acquires a call option will be able to acquire the underlying shares. If this price is too high, the benefit from buying the stock at maturity will be too little, diminishing the value of the specified call option.

To know more about the listed call option, refer to the link below:

https://brainly.com/question/4490636

Answer:

The best estimate of Cost of equity is 10.27%

Explanation:

Cost of equity as per CAPM= Risk free rate + Beta * Market risk premium

Cost of equity as per CAPM = (3.4%+ (1.05*7%)

Cost of equity as per CAPM = 0.034 + 1.05*0.07

Cost of equity as per CAPM = 0.034 + 0.0735

Cost of equity as per CAPM = 0.1075

Cost of equity as per CAPM =10.75%​

Note: CAPM is capital asset pricing model

Cost of equity as per growth model = (Recent Dividend (D1) / Current price) + Growth rate

= (2.35 * 1 + 4.1%) / 43 + 41%

= (2.35 * 1.041) / 43 + 0.041

= 2.4464 / 43 + 0.041

= 0.05689 + 0.041

= 0.09789

= 9.7891%

Best estimate of Cost of equity = Average of Cost of equity as per CAPM and Cost of equity as per growth model

= (10.75+9.789186) / 2

= 20.5391 / 2

= 10.2695

= 10.27%

Hence, the best estimate of Cost of equity is 10.27%

Answer:

C. is the income that she would have earned if she did not go to college.

Explanation:

Opportunity cost is the gain to a person that is foregone by selecting one option over all other options available to himself.

Since in the question, it is mentioned that the opportunity cost for students earning a scholarship go to college

So according to the given scenario, the option c is correct

Hence, all the other options are incorrect

Answer:

Factor endowments

Explanation:

According to the Heckscher-Ohlin model, factor endowments refer to the factors of production (land, labor, capital) that are abundant in a country and allow its citizens to have a comparative advantage over other countries regarding the production of goods and services, and trade.

Different countries have different factor endowments, e.g. Japan has abundant capital and labor, but few land, therefore, it produces and trades manufactured goods. Brazil has abundant land and labor, therefore, it produces and trade agricultural products.

Answer:

Floating exchange rate

Here the market decides the value of the currency as it trade freely in the market based on supply and demand.

Argument For;

Market Based - It is market based therefore it reflects the true value of the currency.

Argument Against;

Uncertainty -  As it trades according to the whims of supply and demand, telling which direction it will go in terms of value is a difficult undertaking therefore financial decisions based on such are riskier.

Fixed exchange rate

Here the value of the currency is fixed either to the value of another currency or to the price of gold.

Argument For;

No Uncertainty -  As the currency is tied to another currency which is usually more stable or gold, the rate of the currency is more predictable.

Argument Against;

Unknown Elements

Managed float

In this exchange rate regime, the Central bank of a country intervenes in the Foreign exchange market to push or pull the currency in the direction that it prefers.

Argument For;

Government intervention - The Government Intervention ensures that the currency's value remains stable as well as allowing the Central bank to maintain a good balance of payments.

Argument Against;

Difficult - Maintaining the currency within the band preferred in a difficult undertaking that requires constant intervention in the Forex market.

Pegged exchange rate

The Central bank in this instance pegs the currency to a basket of currencies after setting an exchange rate it would prefer and then intervenes in forex market to keep it that way.

Argument For;

Reduces uncertainty - The movement of the currency is more predictable due to it being pegged to a basket of currencies.

Argument Against;

Continual government intervention - As this requires the currency to remain at a certain value, the government will keep intervening to ensure that it stays at that exact level.

Target zone

Here the Central Bank allows the currency to fluctuate on the market albeit with limits placed on how much it can do so.

Argument For;

Fluctuation with limits - By combining fixed regimes with floating regimes, the currency can maintain a semblance of true value whilst still be less uncertain.

Argument Against;

Limited options.

Floating exchange rate

Here the market determines the value of the currency as it trades willingly in the market based on supply and demand.

Argument For;

Market-Based - It is market-based thus it reflects the true value of the currency.

Argument Against;

Uncertainty - As it trades according to the impulses of supply and demand, suggesting which direction it will go in terms of significance is a difficult undertaking therefore financial decisions based on such are riskier.

Fixed exchange rate

Here when the value of the currency is fixed either to the value of another currency or to the price of gold.

Argument For;

No Uncertainty - As the currency is tied to another currency which is usually additional stable or gold when the rate of the currency is more predictable.

Argument Against;

Unexplored Elements

Managed float

In this interaction rate regime, when the Central bank of a country intervenes in the Foreign exchange market to push or pull the currency in the direction that it prefers.

Argument For;

Government intervention - When The Government Intervention ensures that the currency's value stays stable as well as allows the Central bank to maintain a good balance of payments.

Argument Against;

Difficult - When the Maintaining the currency within the band is preferred in a difficult undertaking that is required constant intervention in the Forex market.

Pegged exchange rate

The Central bank in this instance pegs the currency to a basket of currencies after setting an interaction rate it would prefer and also then intervenes in the forex market to keep it that way.

Argument For;

Reduces uncertainty - When The movement of the currency is more predictable due to it being pegged to a basket of currencies.

Argument Against;

Continual government intervention - Now, As this requires the currency to remain at a certain value, the government will keep intervening to ensure that it stays at that exact level.

Target zone

When Here the Central Bank allows the currency to fluctuate on the market albeit with limits placed on how much it can do so.

Argument For;

Fluctuation with limits - By combining improved regimes with floating regimes, the currency can maintain a semblance of true value whilst still being less uncertain.

Argument Against;

Limited choices.

Find more information about Supply and Demand here:

https://brainly.com/question/6702244

Answer:

2Q

Explanation:

Economy equilibrium is where MC = MR.

Marginal cost equals marginal return when the supply and demand is linear. Consumer surplus is the additional amount that a consumer is willing to pay for the goods and services. Here MC = 2Q and MR = 60 + 4Q. Here consumer is paying 2Q additional in the equation of marginal return.

Answer: d. choose the price at which it sells its butter.

Explanation:

In a competitive market, the individual sellers do not choose a price to sell at but rather the market does. This is due to the high number of sellers in the market so individual sellers do not have bargaining power.  

The price will therefore equal the firm's marginal revenue as well as Average revenue.

Answer:

April 1.

Cash $22,410 (debit)

Common Stock $22,410 (credit)

April 1.

Salaries Expense $1,868 (debit)

Salaries Payable $1,868 (credit)

April 2.

Rent Expense $1,120 (debit)

Cash $1,120 (credit)

April 3.

Supplies $1,618 (debit)

Account Payable :  Burmingham Company $1,618 (credit)

April 10.

Accounts Receivables $2,365 (debit)

Service Revenue $2,365 (credit)

April 11.

Cash $871 (debit)

Unearned Revenue $871 (credit)

April 20.

Cash $3,486 (debit)

Service Revenue $3,486 (credit)

April 30.

Salaries Payable $1,868 (debit)

Cash $1,868 (credit)

April 1.

Account Payable :  Burmingham Company $1,618 (debit)

Cash $1,618 (credit)

Explanation:

Note the following :

1.Revenue received but not earned is recorded in a liability account known as Unearned Revenue.This account will subsequently be de-recognized as the revenue is earned.

2. When the Suppliers are paid amounts owing to them, de-recognize the Accounts Payable Account of those suppliers and also de-recognize the Cash Assets.

Answer with its Explanation:

The partners of Limited Liability partnership are obliged to pass a resolution about the continuing of business or abandoning business. The resolution requires majority vote, which is three fourth majority.

If they want to revisit the terms and conditions for each partners of the business then they will have to form a new agreement on new terms and conditions for business purposes. The new terms might include the new deadline for expiration date of partnership or extension of partnership date.

Answer: $618,000

Explanation:

From the question, we are informed that the Fed makes an open market operation purchase of​ $200,000 and that the currency drain ratio is 33.33 percent and the desired reserve ratio is 10 percent.

We first have to calculate the money multiplier which will be:

= (1 + the currency drain ratio)/( the currency drain ratio + the reserve ratio)

= (1 + 33.33%)/(33.33% + 10%)

= ( 1 + 0.33)/(0.33 + 0.1)

= 1.33/0.43

= 3.09

The quantity of money​ increase will be:

= 3.09 × $200,000

= $618,000

Answer:

Schedule for cash payments is prepared as follows

Explanation:

Expected selling and administrative Cash payment

                                                                              March    April       May

Expected expense                                             52,400   64,200  68,900          

Depreciation, insurance, and property tax    (9,000)    (9,000)  (9,000)

Total expected payment                                   43,400    55,200   59,900

As the 70% of expense are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month.

Schedule of cash payments for selling and administrative expenses for March, April, and May is prepared as follows

Schedule                                                        March       April       May

Total expected cash payment                    43,400    55,200    59,900

Cash payment in march (43,400x70%)      30,380    

Cash payment in march (43,400x30%)                      13,020

Cash payment in April (55,200x70%)                        38,640

Cash payment in april (55,200x30%)                                           16,560

Cash payment in may (59,900x70%)                                            41,930

Total cash payment                                    $30,380  $51,660   $58,490

Answer:

A. What was the YTM on January 1, 1987?

since the bonds were sold at par, the YTM = coupon rate = 12%

B. What was the price of the bonds on January 1, 1992, 5 years later, assuming that interest rates had fallen to 10%?

0.5 = {60 + [(1,000 - m)/50]} / [(1,000 + m)/2]

25 + 0.025m = 60 + 20 - 0.02m

0.045m = 55

m = 55/0.045 = $1,222.22

C. Find the current yield, capital gains yield, and total return on January 1, 1992, given the price as determined in part b.

current yield = coupon / market price = $120 / $1,222.22 = 9.82%

capital gains yield = (P₁ - P₀)/P₀ = ($1,222.22 - $1,000)/$1,000 = 22.22%

total return = [(P₁ - P₀) + D]/P₀ = [($1,222.22 - $1,000) + $600] /$1,000 = 82.22%

D. On July 1, 2010, 6 1/2 years before maturity, Pennington's bonds sold for $916.42. What were the YTM, the current yield, the capital gains yield, and the total return at that time?

YTM = {60 + [(1,000 - 916.42)/13]} / [(1,000 + 916.42)/2] = 66.965 / 958.21 = 6.98856 x 2 (annual yield) = 13.98%

current yield = coupon / market price = $120 / $916.42 = 13.09%

capital gains yield = (P₁ - P₀)/P₀ = ($916.42 - $1,000)/$1,000 = -8.36%

total return = [(P₁ - P₀) + D]/P₀ = [($916.42 - $1,000) + $2,820] /$1,000 = 273.64%

E. Now assume that you plan to purchase an outstanding Pennington bond on March 1, 2010, when the going rate of interest given its risk was 15.5%. How large a check must you write to complete the transaction?

accrued interest = $60 x 2/6 = $20

0.075 = {60 + [(1,000 - m)/13]} / [(1,000 + m)/2]

0.03875(1,000 + m) = 136.92 - 0.07692m

38.75 + 0.03875m = 136.92 - 0.07692m

0.11567m = 98.17

m = 98.17 / 0.11567 = 848.71 + 20 (accrued interest) = $868.71

Answer:

16.01%

Explanation:

The expected 1-year interest rate 4 years from now is determined using the below formula:

The expected 1-year interest rate 4 years=(1+YTM5)^5/(1+YTM4)^4-1

YTM5 is the yield to maturity in year 5 i.e 10.70%

YTM4 is the yield to maturity in year 4 i.e 9.41%

The expected 1-year interest rate 4 years=(1+10.70%)^5/(1+9.41%)^4-1

The expected 1-year interest rate 4 years=16.01%

Answer:

EPS = $11.74 per share

Explanation:

earnings per share (EPS) = (net income - preferred dividends) / weighted average shares outstanding

net income = $2,410,000

preferred dividends = 52,000 x $100 x 8% = $416,000

weighted average shares outstanding:

EPS = ($2,410,000 - $416,000) / 169,820 stocks = $11.74

Since the dates are a little confusing, I assumed 1/17 for beginning common stocks, 5/12 for issuance of new stocks, 8/11 for acquiring treasury stocks, and 10/1 for stock split. From January 1 to October 1, there are 274 days on a regular 365 day calendar year.

Answer:

Dr Cost of Goods Sold    $93,400

Cr Inventory                         $93,400

Explanation:

The closing inventory in perpetual inventory is $875,300 which is recorded in excess of its inventory in hand $781,900 which means that additional $93,400 must be adjusted in Cost of Goods Sold.

The journal entry on October 31, 2020, is given as under:

Dr Cost of Goods Sold    $93,400

Cr Inventory                         $93,400

Answer:

B.

Explanation:

A truckload carrier is a trucking company that generally contracts an entire trailer-load to a single customer

Answer:

d. 2.83

Explanation:

Note: The financial statement in the question are merged together. They are therefore sorted before answering the question. See the attached excel file for the full question with the sorted financial statement.

The explanation to the answer is now as follows:

The current ratio is a liquidity ratio that is used in measuring whether a company has adequate resources to meet its short-term obligations or pay its liabilities from its current assets.

The current ratio provides a comparison current assets to current liabilities of a company and it can be calculated using the following formula:

Current ratio = Total current assets / Total current liabilities ................. (1)

From the 2017 balance sheet of Burnaby Mountain Trading Company, we have:

Total current assets = $1,700,000

Total current liabilities = $600,000

Substituting the values for Total current assets and Total current liabilities into equation (1), we have:

Current ratio = $1,700,000 / $600,000 = 2.83

Therefore, The firm's current ratio for 2017 is 2.83. That is, the correct option is option d. 2.83.

This indicates that the firm has more than enough current assets to pay off 2.83 or 283% of its current liabilities.

Answer:

Weighted average cost of capital= 11.03%

Explanation:

The weighted average cost of capital (WACC) is the average cost of all the various sources of long-term finance used by a business weighted according to the proportion which each source of finance bears to the the entire pool of fund.  

To calculate the weighted average cost of capital, follow the steps below:  

Step 1: Calculate cost of individual source of finance:

Cost of Equity= 13.6%  

After-tax cost of debt:

= (1- T) × before-tax cost of debt  

= 7.72%× (1-0.35)= 5.018 %  

Cost of preferred stock costs

= Div/Price × 100 = (6.60%× 100)/89× 100 =7.42%

Step 2 : Market value of all the sources of funds

Equity =  $67×26,000 =1,742,000

Preferred stock = 89.00 × 6,700 = $596,300

Debt- 105/100 × 368,000 = $386,400

Step 3; Work out weighted average cost of capital (WACC)  

Source                             Cost        Market value             Cost × Market value   a                                            b                     c              b× c

Equity                                13.6%            $1,742,000          236,912

Preferred stock                 7.42%           $596,300     =     44,245.46

Debt                                   5.018 %         386400  =          19,389.55

     Total                                                 2,724,700         300,547.01

WACC = (300,547.01/   2,724,700) ×  100 =  11.03%

Weighted average cost of capital= 11.03%

Answer: Incomplete question.

the complete queston is

Use the above straight-line bond amortization table and prepare journal entries for the following.

(a) The issuance of bonds on December 31, 2020.

b) The first interest payment on June 30, 2021.

(c) The second interest payment on December 31, 2021.

find answer in explanation column.

Explanation:

Semiannual Period-End Unamortized Discount Carrying Value

(0) January 1,  issuance            $13,466               $ 186,534

(1) June 30, first payment          11,782                188,218

(2) December 31, second payment 10,098             189,902

1. to record issue of bonds payable

Date  Account                         Debit             Credit

Dec 31,2020 Cash(carrying value) $ 186,534  

Discount on bonds payable              $13,466    

Bonds payable                                             $200,000

2. To record first interest payment

Date        Account                         Debit             Credit

june 30, 2021 Interest expense     $7,684

discount on bonds payable                               $1, 684

Cash                                                                $6,000

Calculation =

Cash paid towards interest every semi annual period = $200,000 X 6% X1/2 =$6,000.

interest expense = cash paid + discount on bonds payable written off.

                           = $6000 + $1, 684  = $7,684

discount on bonds payable = unamortised discount on 31 dec - unamortised discount on 30th june) ($13,466 -11,782 ==$1,684)  

3.To record second interest payment on december 31,2021.

 Date        Account                         Debit             Credit

Dec. 31 ,2021 Interest expense         $7,684  

 discount on bonds payable                                $1.684

                          Cash                                          $6,000

Calculation

discount on bonds payable = unamortised discount on 30th june - unamortised discount on 31st december 2021 =11,782-10,098 = $1.684

Answer:

Closing balance  = $66,OOO

Explanation:

DATA

Opening balance in allowance for sales return = 32,900

Sales = 730,000

Cash Collection= 690,000

Estimated sales return = 7% of all sales = 51100

Merchandise return for credit = 18,000

We can calculate the closing balance in the allowance for sales return account by adding estimated returns and deducting merchandise return from opening balance.

Closing balance = Opening balance + Estimated sales return - Merchandise return for credit

Closing balance = $32,900 + $51,100 - $18,000

Closing balance  = $66,OOO

Answer:

12,000

Explanation:

The following data was reported for an organisation

Authorized shares is 20,000

Issued shares is 15,000

Treasury shares is 3,000

Therefore, the number of outstanding shares can be calculated as follows

Number of outstanding shares= Issued stock-Treasury stock

= 15,000-3,000

= 12,000

Hence the number of outstanding shares is 12,000

Answer:

The value of the investment at the time of his first deposit is $1,000.

At the end of the first year, the investment will be worth $1,070.

Explanation:

The value of a deposit investment is determined by the interest rate and time.  Time affects the value of an investment by this small-scale businessman in many ways.  The passage of time increases the value of his investment.  However, the total increase may not be due to the interest rate, but inflation also affects asset's value.  For this businessman to make a gain in the investment, the interest rate must be higher than the inflation rate.  Otherwise, the investment loses money due to the effects of inflation, which reduces the real value of an asset over time.

Answer: A. 25%

Explanation:

The Contribution margin for the whole company = [tex]\frac{Total Contribution Margin Amounts}{Total Sales}[/tex]

Total Contribution Margin = (0.45 * 25,000) + (0.4 * 40,000) + ( 0.15 * 100,000)

= 9,000+16,000+15,000

= $40,000

Total Sales = 20,000+40,000+100,000

= $160,000

Contribution Margin for the whole Company = [tex]\frac{40,000}{160,000}[/tex]

= 25%