Answer:
I think it is C
hope I'm right
Assume a budget constraint is given by 10 = x + y For each of the following utility function calculate the utility maximizing x and y and the resulting level of utility.
(a) U x/y
(b) U In(x) + In(y)
(c) U 2x2y
Answer:
A) y = 0 , x = 10
B) x = 5 = y
c) x = 6.667, y = 3.333
Explanation:
Budget constraint = x + y = 10
calculate the utility maximizing x and y and the resulting level of utility
attached is the detailed solution
Consider the following information for Maynor Company, which uses a periodic inventory system:
Transaction Units Unit Cost Total Cost
January 1 Beginning
Inventory 29 $ 79 $ 2,291
March 28 Purchase 39 85 3,315
August 22 Purchase 58 89 5,162
October 14 Purchase 63 95 5,985
Goods Available for Sale 189 $ 16,753
The company sold 63 units on May 1 and 58 units on October 28.
Required:
Calculate the company's ending inventory and cost of goods sold using the each of following inventory costing methods. (Round the per unit cost to two decimal places and then round your answer to the nearest whole dollar.)
a. FIFO:
b. LIFO:
c. Weighted Average
Answer:
Instructions are below.
Explanation:
Giving the following information:
January 1 Beginning Inventory 29 $79 $2,291
March 28 Purchase 39 $85 3,315
August 22 Purchase 58 $89 5,162
October 14 Purchase 63 $95 5,985
The company sold 63 units on May 1 and 58 units on October 28.
First, we need to calculate the units in ending inventory:
Ending inventory in units= 189 - 121= 68
To calculate the ending inventory under the FIFO (first-in, first-out) method, we need to use the cost of the last units incorporated into inventory.
Ending inventory= 63*95 + 5*89= $6,430
COGS= 29*79 + 39*85 + 53*89= $10,323
To calculate the ending inventory under the LIFO (last-in, first-out) method, we need to use the cost of the first units incorporated into the inventory
Ending inventory= 29*79 + 39*85= $5,606
COGS= 63*95 + 58*89= $11,147
Finally, to calculate the ending inventory using the weighted-average, we need to calculate the weighted average price:
weighted average price= 16,753/189= $88.64
Ending inventory= 68*88.64= $6,027.52
COGS= 121*88.64= $10,725.44
Johnson Industries manufactures a popular interactive stuffed animal for children that requires four computer chips inside each toy. The company pays $ 3 for each computer chip. To help to guard against stockouts of the computer chip, Johnson Industries has a policy that states that the ending inventory of computer chips should be at least 25% of the following month's production needs. The production schedule for the first four months of the year is as follows:
Stuffed animals to be produced
January 6,000
February 4,600
March 4,600
April 4,200
Requirement:
1. Prepare a direct meterials budget for the first quarter that shows both the number of computer chips needed and the dollar amount of the purchases in the budget.
2. Prepare the direct materials budget by first calculating the total quartile needed, than complete the budget.
Answer:
January February March
Budgeted Materials Purchase (units) 28,600 18,400 18,000
Budgeted Materials Purchase $85,800 $55,200 $54,000
Explanation:
Direct materials budget for the first quarter
January February March
Budgeted Production 6,000 4,600 4,600
Budgeted Material 24,000 18,400 18,400
Add Budgeted Closing Inventory 4,600 4,600 4,200
Materials Needed 28,600 23,000 22,600
Less Budgeted Opening Inventory 0 (4,600) (4,600)
Budgeted Materials Purchase 28,600 18,400 18,000
Cost of computer chip $3 $3 $3
Budgeted Materials Purchase $85,800 $55,200 $54,000
On a hot day Alice’s total satisfaction from consuming ice cream and soft drinks is at its maximum when Select one: a. the relative price of ice cream and soft drinks is less than the ratio of the marginal utility of ice cream to the marginal utility of soft drinks b. the relative price of ice cream and soft drinks is equal to the ratio of the marginal utility of soft drinks to the marginal utility of ice cream. c. the relative price of ice cream and soft drinks is greater than the ratio of the marginal utility of ice cream to the marginal utility of soft drinks d. the relative price of ice cream and soft drinks is equal to the ratio of the marginal utility of ice cream to the marginal utility of soft drinks.
Answer:
im not really sure, i hope you find your answer.
Explanation:
According to Debra, the vice president of Theo Chocolate, one of the results of offering simpler products is that people are:
Answer:
c. less interested in paying a premium for fair trade
Explanation:
Indeed, in this case, according to Debra, who serves as the vice president of Theo Chocolate, one of the results of offering simpler products is that people find it less interesting to pay a premium for fair trade.
During lunch time, customers arrive at a postal office at a rate of lambda equals 36 per hour. The interarrival time of the arrival process can be approximated with an exponential distribution. Customers can be served by the postal office at a rate of mu equals 45 per hour. The service time for the customers can also be approximated with an exponential distribution. For each of the following questions, show your work and use the right notation. Determine the utilization factor.
a. po = 4/5
b. po = 5/4
c. po = 1/5
d. po = 1/9
e. none of these
Answer:
a. po = 4/5
Explanation:
Customer arrives at the rate of λ equal 36 per hour
Customers can be served by the postal office at a rate of μ equals 45 per hour
λ = 36 / hour
μ = 45 / hour
P = λ / μ
P= 36 / 45
P= 4/5
Thus, the utilization factor is 4/5
Filer Manufacturing has 11.6 million shares of common stock outstanding. The current share price is $59, and the book value per share is $5. Filer Manufacturing also has two bond issues outstanding. The first bond issue has a face value of $99 million, has a 8 percent coupon, and sells for 92 percent of par. The second issue has a face value of $81.2 million, has a 8 percent coupon, and sells for 95.5 percent of par. The first issue matures in 10 years, the second in 5 years. What is Filer's capital structure weight of equity on a book value basis? (Do not round your intermediate calculations.) What is Filer's capital structure weight of debt on a book value basis? (Do not round your intermediate calculations.) What is Filer's capital structure weight of equity on a market value basis? (Do not round your intermediate calculations.) What is Filer's capital structure weight of debt on a market value basis?
Answer:
a. Filer's capital structure weight of equity on a book value basis is 24%.
b. Filer's capital structure weight of debt on a book value basis is 76%.
c. Filer's capital structure weight of equity on a market value basis is 80%.
d. Filer's capital structure weight of debt on a market value basis is 20%.
Explanation:
a. What is Filer's capital structure weight of equity on a book value basis? (Do not round your intermediate calculations.)
Equity book value = Equity book value per share * Number of shares = 11,600,000 * $5 = $58,000,000
Debt book value = Debt face value = First bond face value + Second face value = $99,000,000 + $81,200,000 = $180,200,000
Total book value = $58,000,000 + $180,200,000 = $238,200,000
Book value weight of equity = Equity book value / Total book value = $58,000,000 / $238,200,000 = 0.24, or 24%
Therefore, Filer's capital structure weight of equity on a book value basis is 24%.
b. What is Filer's capital structure weight of debt on a book value basis? (Do not round your intermediate calculations.)
From part a, we have:
Debt book value = $180,200,000
Total book value = $238,200,000
Therefore, we have:
Book value weight of debt = Debt book value / Total book value = $180,200,000 / $238,200,000 = 0.76, or 76%
Therefore, Filer's capital structure weight of debt on a book value basis is 76%.
c. What is Filer's capital structure weight of equity on a market value basis? (Do not round your intermediate calculations.)
Equity market value = Current share price * Number of shares = $59 * 11,600,000 = $684,400,000
Debt market value = Bond price quote * Par value of the bond
Debt market value = First bond market value + Second bond market value = (92% * $99,000,000) + (95.5% * $81,200,000) = $168,626,000
Total market value = Equity market value + Debt market value = $684,400,000 + $168,626,000 = $853,026,000
Market value weight of equity = Equity market value / Total market value = $684,400,000 / $853,026,000 = 0.80, or 80%
Therefore, Filer's capital structure weight of equity on a market value basis is 80%.
d. What is Filer's capital structure weight of debt on a market value basis?
From part c, we have:
Debt market value = $168,626,000
Total market value = $853,026,000
Market value weight of debt = Debt market value / Total market value = $168,626,000 / $853,026,000 = 0.20, or 20%.
Therefore, Filer's capital structure weight of debt on a market value basis is 20%.
On January 1, 20X7, Server Company purchased a machine with an expected economic life of five years. On January 1, 20X9, Server sold the machine to Patron Corporation and recorded the following entry:
Cash 45,000
Accumulated Depreciation 28,000
Machine 70,000
Gain on Sale of Equipment 3,000
Patron Corporation holds 75 percent of Server's voting shares. Server reported net income of $50,000, and Patron reported income from its own operations of $100,000 for 20X9. There is no change in the estimated economic life of the equipment as a result of the intercorporate transfer. Based on the preceding information, in the preparation of the 20X9 consolidated income statement, machine will be what amount and will it be debited or credited in the consolidation entry?
Answer:
Consolidation entry is given below
Explanation:
Consolidated Entry DEBIT CREDIT
Machinery(w) $42,000
Loss on purchase $3,000
Cash $45,000
NOTE: We will record a loss in consolidation entry because the consideration paid is greater than the machinery's carrying value.
Working
Carrying value = Net book value - Accumulated Depreciation
Carrying value = $70,000 - $28,000
Carrying value = $42,000
High-Low Method Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 80,000 $25,100,000 92,000 27,206,000 120,000 32,120,000 a. Determine the variable cost per unit a
Answer:
Variable cost per unit= $175.5
Explanation:
Giving the following information:
Units Produced Total Costs
80,000 $25,100,000
92,000 $27,206,000
120,000 $32,120,000
To calculate the variable cost per unit under the high-low method, we need to use the following formula:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (32,120,000 - 25,100,000) / (120,000 - 80,000)
Variable cost per unit= 7,020,000 / 40,000
Variable cost per unit= $175.5
Decision-making and problem-solving skills are essential for those working in emergency management, but what are the traits of effective decision-makers and problem-solvers?
Explanation:
Remember, a decision maker is someone who is faced with the task of chosing among available course of action the best option. Furthermore, a decision maker can also be a problem-solver if the decision made provides relieve or a solution to a pending problem.
A common trait among decision makers and problem-solvers includes having communication skills like– listening attentively and providing feedback. Also, a decision making process of
1. Identifying the problem.
2. Searching for available options.
3. Analyzing the advantages and disadvantages of each alternative option.
4. Selecting the best option
5. Finally, implementation of the solution
6. Feedback on solution to determine whether the solution is effective.
Retired utility workers are suing their former employer for knowingly exposing them to asbestos without warning them of the health risks. The retired workers did not learn of the prolonged exposure until long after their retirement because the company engaged in a systematic cover up of the exposure. The retired workers' cause of action is for which of the following?
a. Assault
b. Battery
c. Injurious falsehood
d. Tortious interference
Answer:
b. Battery
Explanation:
Retired utility workers are suing their former employer for knowingly exposing them to asbestos without warning them of the health risks. The retired workers did not learn of the prolonged exposure until long after their retirement because the company engaged in a systematic cover up of the exposure. The retired workers' cause of action is for battery.
In Business law, battery can be defined as the act of intentionally causing physical harm to an individual or group of people through physical contacts.
Hence, in this case the employers knowingly or intentionally exposed the retired workers to asbestos without warning them of the health risks associated.
Simply stated, a battery in criminal law is completed assault.
A company has net working capital of $2,204, current assets of $6,475, equity of $22,215, and long-term debt of $10,535. What is the company's net fixed assets?
Answer:
Net fixed assets is $30546.
Explanation:
Given the net working capital = $2204
The current assets of the company = $6475
The equity of the company = $22215
Long term debt of the company = $10535
Net Working Capital = Current Assets – Current Liabilities
2204 = 6475 – current liabilities
Current liabilities = 6475 – 2204 = 4271
Total assets = Current Liabilities + Long term Debt + Total Equity
= 4271 + 10535 + 22215
= $37021
Total Liabilities and Stockholders Equity = Total Assets
Total assets = $37021
Total Assets = Current Assets + Net Fixed Assets
37021 = 6475 + net fixed assets
Net fixed assets = 37021 – 6475 = $30546
The following data are for Paso Robles Company for the year ended 2009 December 31: Costs: Direct material $ 90,000 Direct labor 130,000 Manufacturing overhead: Variable 45,000 Fixed 90,000 Sales commissions (variable) 25,000 Sales salaries (fixed) 20,000 Administrative expenses (fixed) 35,000 Selling price per unit $ 10 Units produced and sold 60,000 Assume direct materials and direct labor are variable costs. Prepare a contribution margin income statement and a traditional income statement.
Answer:
Net operating income= 165,000
Explanation:
Giving the following information:
We need to make a contribution format income statement.
First, we will calculate the total variable cost:
Direct material= 90,000
Direct labor= 130,000
Variable overhead= 45,000
Sales commissions (variable)= 25,000
Total variable cost= 290,000
Contribution margin income statement:
Sales= 60,000*10= 600,000
Total variable cost= (290,000)
Total contribution margin= 310,000
Fixed overhead= (90,000)
Sales salaries (fixed)= (20,000)
Administrative expenses (fixed)= (35,000)
Net operating income= 165,000
A firm has explicit costs of $100,000 and implicit costs of $30,000, and generates $150,000 in revenue. How much revenue does it need to have a normal profit
Answer:
above $130,000
Explanation:
Implicit cost is the opportunity cost that is incurred from the use of a company's resources, while explicit cost are those incurred in the normal running of the business. For example wages, utility payment, and raw material cost.
Total cost = Explicit cost + Implicit Cost
Total cost = $100,000 + $30,000
Total Cost = $130,000
Profit = Revenue - Total cost
So if profit is 0
0 = Revenue - $130,000
Revenue = $130,000
Therefore to get a normal profit that is above 0, the revenue should be above $130,000
Answer:
$130,000
Explanation:
Normal profit occurs when revenues equal explicit and implicit costs.
total revenue = explicit cost + implicit cost
$100,000 + $30,000 = $130,000
A firm sells 300,000 units per week. It charges $ 35 per unit, the average variable costs are $40, and the average costs are $55. In the long run, the firm should
firm sells 300,000 units per week. It charges $ 35 per unit, the average variable costs are $40, and the average costs are $55. In the long run, the firm should a. Shut-down as the firm is making a loss of $15 million per week b. Shut-down as the firm cannot cover the variable costs c. Shut down because the price is lower tha average cost d. None of the above
Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,100 units) $ 227,200 $ 32.00 Variable expenses 134,900 19.00 Contribution margin 92,300 $ 13.00 Fixed expenses 54,800 Net operating income $ 37,500 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 80 units? 2. What would be the revised net operating income per month if the sales volume decreases by 80 units? 3. What would be the revised net operating income per month if the sales volume is 6,100 units?
Answer:
1. $38,540
2. $37,500
3. $24,500
Explanation:
1. The computation of revised net operating income per month if the sales volume increases by 80 units is shown below:-
Net operating income = Sales - Variable expenses - Fixed expenses
= (71,80 × $32) - (7,180 × $19) - $54,800
= $229,760 - $136,420 - $54,800
= $38,540
2. The computation of revised net operating income per month if the sales volume decreases by 80 units is shown below:-
Net operating income = Sales - Variable expenses - Fixed expenses
= (71,00 × $32) - (7,100 × $19) - $54,800
= $227,200 - $134,900 - $54,800
= $37,500
3. The computation of revised net operating income per month if the sales volume is 6,100 units is shown below:-
Net operating income = Sales - Variable expenses - Fixed expenses
= (61,00 × $32) - (6,100 × $19) - $54,800
= $195,200 - $115,900 - $54,800
= $24,500
Salary expense was 15.5% of sales this year. If sales this year are $1,300,000 and are forecasted to be $1,500,000 next year, what is forecasted salary expense next year if all expenses maintain a constant percent of sales?
Answer:
Salary expense next year=$232,500
Explanation:
The ratio of expense to ales is an important which helps in the management and control overhead.
We can be predict the Salary expense using the information given about the relationship between salary expense and sales .
If salary expense is 15.5% of sales, then Salary expense this year =
15.5% × 1,300,000=$201,500
Salary expense next year = 15.5% × foretasted sales next year
= 15.5% × 1,500,000 = $232,500
We use 15.5% because the relationship between the expenses and the sales in proportion is expected to remain the same
Salary expense next year=$232,500
2. The current price of a stock is $50. In 1 year, the price will be either $65 or $35. The annual risk-free rate is 10%. Find the price of a call option on the stock that has an exercise price of $55 and that expires in 1 year. (Hint: Use daily compounding.)
What is the difference in operating income between processing the cat bowls further versus selling them off at the split-off point?
Answer: -$1,920
Explanation:
Operating Income if processed further would be;
= (Sales * Price) - Incremental Cost
= (1,000 * $14) - 4,920
= 14,000 - 4,920
= $9,080
Operating Income if sold off at split-off point;
= Sales * Price
= 1,000 * $11
= $11,000
Difference
= Processed Further - Sold at split-off
= 9,080 - 11,000
= -$1,920
Difference would be an Operating (loss) of $1,920.
Jiminy’s Cricket Farm issued a 30-year, 6 percent semiannual bond three years ago. The bond currently sells for 93 percent of its face value. The company’s tax rate is 22 percent. a. What is the pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
a. What is the pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
6.46%b. What is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
5.04%Explanation:
we must first determine the bond's yield to maturity:
YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2] = {30 + [(1,000 - 930)/60]} / [(1,000 + 930)/2] = 31.17 / 965 = 3.23% x 2 = 6.46%
after tax cost of debt = 6.46% x (1 - tax rate) = 6.46% x (1 - 22%) = 6.46% x 78% = 5.04%
It is March 31, 2014. What is EBay’s latest available actual share count? Please provide your answer without comma separator or decimal (Ex: 23456326563)
Answer:
1267342622
Explanation:
According to the Form 10-Q filed by eBay Inc. with the SEC for the quarter ending March 31, 2014, ...
"As of April 25, 2014, there were 1,267,342,622 shares of the registrant's common stock, $0.001 par value, outstanding."
intext:"The adjusting entry at the end of an accounting period to record the unpaid salaries of employees for work provided is"
Answer:
A debit to Salaries Expense and a credit to the Salaries Payable Account.
Explanation:
This adjusting entry brings the salary expense account to its accrued balance in line with the accrual concept and matching principle of generally accepted accounting principles. These state that expenses and revenues should not reflect only the cash basis but the accrual basis, whereby unpaid or prepaid expenses, deferred or unpaid revenues that relate to the accounting period are brought into consideration.
Gift property (disregarding any adjustment for gift tax paid by the donor): a.Has the same basis to the donee as the donor's adjusted basis if the donee disposes of the property at a gain. b.Has the same basis to the donee as the donor's adjusted basis if the donee disposes of the property at a loss, and the fair market value on the date of gift was less than the donor's adjusted basis. c.Has a zero basis to the donee if the fair market value on the date of gift is less than the donor's adjusted basis. d.Has no basis to the donee because he or she did not pay anything for the property.
Answer: Has the same basis to the donee as the donor's adjusted basis if the donee disposes of the property at a gain.
Explanation:
For a gifted property, it should be noted that the tax basis for a donee that is, the person who gets the gift will be identical to that of the donor, this is, the person that donates the gift in cases whereby the property is gotten as a gift.
Therefore, a gift property disregarding any adjustment for gift tax paid by the donor will have the same basis to the donee as the donor's adjusted basis if the donee disposes of the property at a gain.
You experiment by offering free warranties for your product in market A but not in market B. Sales in A rise from 240 to 360 units per week while sales in B rise from 410 to 430. The Difference-in-difference estimate of the effect of the free warranty is:
Answer:
Difference in difference estimate = 50 - 5% = 45 %
Explanation:
a) Data and Calculations:
Market A Market B
Sales 240 410
Sales rise 360 430
Rise difference 120 20
Percentage of rise 50% 5%
120/240 x 100 = 50%
20/41 x 100 = 4.878% or 5%
Therefore, the Difference in difference estimate = 50 - 5% = 45 %
One can then say that the free warranties in market A brought about a difference in difference of 45% in Market A when compared to the no warranties in Market B. This can be seen from the presented data. Sales in A rose from 240 units to 360 units, an increase of 120 units or 50%. Sales in market B only rose from 410 to 430, an increase of 20 units or 5%. This difference in difference estimator shows the effect of the free warranty on market A and market B. This means that the firm could do better by introducing the free warranties for its product in market B, all things being equal.
You have a portfolio worth $63,500 that has an expected return of 13.3 percent. The portfolio has $16,900 invested in Stock O, $24,700 invested in Stock P, with the remainder in Stock Q. The expected return on Stock O is 18.1 percent and the expected return on Stock P is 11.3 percent. What is the expected return on Stock Q
Answer:
Return on Stock Q is 11.85%
Explanation:
Investment in Q = ($63,500 - $16,900 - $24700)
Investment in Q =21900
Portfolio return = Respective return * Respective investment weight
13.3= (16900 / 63500 * 18.1%) + ( $24,700 / $63,500 * 11.3% ) + ( $21900 / $63,500 * Return on Q)
13.3 = 4.817165354 + 4.39533071% + (21900 / 63500*Return on Q)
13.3 = 9.21259843% + (21900 / 63500*Return on Q)
Return on Q = (13.3% -9.21259843%) *63500/21900
Return on Q = (4.08740157 * 2.899543379)
Return on Q = 11.85159816%
Return on Q =11.85%
Mercedes, Co. has the following quarterly financial information. 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter Sales revenue $ 913,800 $ 923,300 $ 921,600 $ 929,400 Cost of goods sold 305,100 317,700 317,300 322,500 Operating expenses 248,300 259,700 257,900 262,000 Interest expense 3,900 3,900 3,900 3,800 Income tax expense 84,900 87,800 87,800 90,300 Average number of common shares outstanding 796,030 791,064 792,670 806,000 Stock price when Q4 EPS released $ 24 a. Calculate the gross profit percentage for each quarter. (Do not round your intermediate calculations and round your final answer to 2 decimal places.)
Answer:
Mercedes, Co.
Gross profit percentage for each quarter:
= Gross profit / Sales x 100
4th Quarter 3rd Quarter 2nd Quarter 1st Quarter
Gross profit $ 608,700 $ 605,600 $ 604,300 $ 606,900
Sales revenue $ 913,800 $ 923,300 $ 921,600 $ 929,400
Gross profit $ 66.61% 65.59% 65.57% 65.30%
Explanation:
a) Data and Calculations:
4th Quarter 3rd Quarter 2nd Quarter 1st Quarter
Sales revenue $ 913,800 $ 923,300 $ 921,600 $ 929,400
Cost of goods sold 305,100 317,700 317,300 322,500
Gross profit $ 608,700 $ 605,600 $ 604,300 $ 606,900
Operating expenses 248,300 259,700 257,900 262,000 Interest expense 3,900 3,900 3,900 3,800
Income tax expense 84,900 87,800 87,800 90,300
Average number of common
shares outstanding 796,030 791,064 792,670 806,000
b) The Gross profit percentage of Mercedes, Co for each quarter is calculated as the gross profit divided by sales revenue, and then multiplied by 100. To obtain the gross profit, the cost of goods sold is deducted from the sales revenue. The gross profit represents a financial measure that shows the performance of management in controlling the cost of goods sold in comparison with the sales revenue. It is from the gross profit that operating expenses, interests, and taxes will be offset to arrive at the net income.
The American car battery industry boasts that its recycling rate now exceeds 95%, the highest rate for any commodity. However, with changes brought about by specialization and globalization, parts of the recycling system are moving offshore. This is particularly true of automobile batteries, which contain lead. The Environmental Protection Agency (EPA) is contributing to the offshore flow with newly implemented standards that make domestic battery recycling increasingly difficult and expensive. The result is a major increase in used batteries going to Mexico, where environmental standards and control are less demanding than they are in the U.S. One in five batteries is now exported to Mexico. There is seldom difficulty finding buyers because lead is expensive and in worldwide demand. While U.S. recyclers operate in sealed, mechanized plants, with smokestacks equipped with scrubbers and plant surroundings monitored for traces of lead, this is not the case in most Mexican plants. The harm from lead is legendary
The correct answer to this open question is the following.
The question is incomplete. There are parts of the question missing. Indeed, there is no question posted, it is just a statement.
However, we can do research and comment on the following.
We are facing two scenarios here. Both, ethical dilemmas that need to be solved.
1) as an independent auto repair shop owner that tries to safely dispose of a few old batteries each week. (Your battery supplier is an auto parts supplier who refuses to take your old batteries.)
In this case, I would check the original agreement with the supplier to see if there is a clause on old batteries management. If not, I would ask it to help me solve this issue because I am his client and has to take care of me and the environment. Otherwise, I would have to contemplate the option of changing supplier.
2) I am the manager of a large retailer responsible for the disposal of thousands of used batteries each day.
In this other case, I would follow the Environmental Department rules and regulations to comply with the correct procedures. This means to ask for support and orientation to get all the revisions to work properly. Because I know all the consequences of not recycling correctly or the damage done to humans and the environment. So although it could be more money, and would modernize my equipment to better manage the disposal of batteries. It would be an investment, not an expense.
Presented here are the comparative balance sheets of Hames Inc. at December 31, 2020 and 2019. Sales for the year ended December 31, 2020, totaled $580,000.
HAMES INC.
Balance Sheets
December 31, 2020 and 2019
2020 2019
Assets
Cash $ 24,000 $ 21,000
Accounts receivable 78,000 72,000
Merchandise inventory 103,000 99,000
Total current assets $ 205,000 $ 192,000
Land 50,000 40,000
Plant and equipment 125,000 110,000
Less: Accumulated depreciation (65,000) (60,000)
Total assets $ 315,000 $ 282,000
Liabilities
Short-term debt $ 18,000 $ 17,000
Accounts payable 66,000 76,000
Other accrued liabilities 20,000 18,000
Total current liabilities $ 104,000 $ 111,000
Long-term debt 22,000 30,000
Total liabilities $ 126,000 $ 141,000
Stockholders’ Equity
Common stock, no par, 100,000 shares authorized
40,000 and 25,000 shares issued, respectively $ 74,000 $ 59,000
Retained earnings:
Beginning balance $ 82,000 $ 85,000
Net income for the year 53,000 2,000
Dividends for the year (20,000) (5,000)
Ending balance $ 115,000 $ 82,000
Total stockholders’ equity $ 189,000 $ 141,000
Total liabilities and stockholders’ equity $ 315,000 $ 282,000
Required:
1. Calculate ROI for 2020. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
2. Calculate ROE for 2020. (Round your answer to 1 decimal place.)
3. Calculate working capital at December 31, 2020.
4. Calculate the current ratio at December 31, 2020. (Round your answer to 2 decimal places.)
5. Calculate the acid-test ratio at December 31, 2020. (Round your answer to 2 decimal places.)
Answer:
1. 16.83%
2. 28.04%
3. $101,000
4. 1.97
5. 0.98
Explanation:
Return On Investment (ROI) = Net Profit After Tax / Total Assets × 100
= $53,000 / $ 315,000 × 100
= 16.825 or 16.83%
Return On Equity (ROE) =Net Profit After Tax / Total Shareholders Funds × 100
= $53,000 / $ 189,000 × 100
= 28.0423 or 28.04 %
Working Capital = Current Assets - Current Liabilities
= $ 205,000 - $ 104,000
= $101,000
Current Ratio = Current Assets / Current Liabilities
= $ 205,000 / $ 104,000
= 1.9712 or 1.97
Acid Test Ratio = (Current Assets - Inventory) / Current Liabilities
= ($ 205,000 - $ 103,000) / $ 104,000
= 0.98077 or 0.98
What is the proper preparation sequencing of the following budgets? 1. Budgeted Balance Sheet 2. Sales Budget 3. Selling and Administrative Budget 4. Budgeted Income Statement
Answer:
1. Sales Budget
2. Selling and Administrative Budget
3. Budgeted Income Statement
4. Budgeted Balance Sheet
Explanation:
First of all the sales budget is prepared in which expected sales are shown and then the selling and administrative budget is prepared which shows expenses related to sale.
The income statement budget is prepared which shows the expected income.
Then at last Budgeted Balance Sheet is prepared in which the expected income is transferred.
The order in which they appear is as follows.
1. Sales Budget
2. Selling and Administrative Budget
3. Budgeted Income Statement
4. Budgeted Balance Sheet
The proper preparation sequencing of the budgets includes the Sales Budget, Selling and Administrative Budget, Budgeted Income Statement, and Budgeted Balance Sheet respectively.
The preparation of budgeted statement by business helps them to know how to expend funds in the future and plan for changes as well.
The proper preparation sequencing of the budgets includes:
Sales budget which are prepared to estimate the sales and revenue expected for the periodThe Selling and administrative budget is prepared estimate the cost of operationThe Budgeted Income Statement is prepared like the Conventional Income statement.The Budgeted Balance Sheet is prepared like the Conventional Balance sheet.Learn more about this here
brainly.com/question/17118734
A person presently owes $5,000 on a credit card bill. As a penalty, he/she has to pay a uniform amount of $700 per month for a year. The rate of return per month that the credit card company make in a year is closest to: g
Answer:
The company get $283.33 return per monthExplanation:
Given that the person is to pay $700 per month for one year
Hence after one year elapse he will pay a total of
$700*12= $8,400
The returns the credit card company will get after one year is
yearly return= $8,400-$5,000= $3,400.
The rate of return per month= $3,400/12= $283.33.