Answer: True
Explanation:
The balanced scorecard perspective implies that the company has to satisfy their customer through the provision of quality products and services.
From the question, the target of increasing customers satisfaction is a good example of a performance target that is focused on customer's perspective of the balance scorecard. This means that the statement is true.
Cash Payback Period, Net Present Value Method, and Analysis
Elite Apparel Inc. is considering two investment projects.
The estimated net cash flows from each project are as follows:
Year Plant Expansion Retail Store Expansion
1 $450,000 $500,000
2 450,000 400,000
3 340,000 350,000
4 280,000 250,000
5 180,000 200,000
Total $1,700,000 $1,700,000
Each project requires an investment of $900,000.
A rate of 15% has been selected for the net present value analysis.
Required:
1. Compute the cash payback period for each project.
2. Compute the net present value for each project.
(Round to nearest dollar)
Answer:
Plant Expansion
Cash payback period = 2 years
NPV = $304,707.24
Retail Store Expansion
Cash payback period = 2 years
NPV = $309,744.42
Explanation:
Cash payback period measures how long it takes for the amount invested in a project to be recovered from the cumulative cash flows.
Cash payback for the Plant Expansion
Amount invested = $-900,000
Amount recovered in the first year = $-900,000 + $450,000 = $-450,000
Amount recovered in the second year = $-450,000 + $450,000 = 0
The amount invested in the project is recovered In the second year. So, the cash payback period is 2 years.
Cash payback for the Retail Store Expansion
Amount invested = $-900,000
Amount recovered in the first year = $-900,000 + $500,000 = $-400,000
Amount recovered in the second year = $-400,000 + $400,000 = 0
The amount invested in the project is recovered In the second year. So, the cash payback period is 2 years.
The net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator:
Plant Expansion
Cash flow in year 0 = $-900,000
Cash flow in year 1 = $450,000
Cash flow in year 2 = $450,000
Cash flow in year 3 = $340,000
Cash flow in year 4 = $280,000
Cash flow in year 5 = $180,000
I = 15%
NPV = $304,707.24
Retail Store Expansion
Cash flow in year 0 = $-900,000
Cash flow in year 1 = $500,000
Cash flow in year 2 = $400,000
Cash flow in year 3 = $350,000
Cash flow in year 4 = $250,000
Cash flow in year 5 = $200,000
I = 15%
NPV = $309,744.42
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
Congress wishes to impose regulations on the insurance industry. What test would the United State Supreme Court use to determine whether such regulations would violate the substantive due process rights of insurance companies that would be subject to the regulations? What is the likely outcome of the case?
Answer:
Three part test.
The outcome: if the three requirements are not met, then there is not point the Government should interfere.
At the end, the law will be held.
Explanation:
In some cases, the courts are allowed to protect individual, company or business organization from Government interrupting with these individuals or business organization "fundamental right" and this is the "substantive due process rights " of insurance companies as mentioned in the question above.
The test that the United State Supreme Court can use to determine whether the regulations they want to enact would violate the substantive due process rights of insurance companies is what is known as the THREE PARR TEST.
THE THREE PART TEST has its root from cases such as that of Pasgraf V Long Island Railroad co. The three part test involves three main subjects and they are;
=> foreseeability: are the policies in which insurance companies work going to affect the consumers in the future?
=> proximity: what kind of relationship do the insurance companies have with there consumers?
=> fairness: are these policies just and fair?
CONCLUSION: if the three requirements are not met, then there is not point the Government should interfere.
Oriole Company has the following items: common stock, $1610000; treasury stock, $217000; deferred income taxes, $254000 and retained earnings, $782000. What total amount should Oriole Company report as stockholders’ equity?
Answer:
Stockholders' equity = $ 2,175,000.
Explanation:
Stockholders' equity is also the corporation's total book value. In other word, it is the amount of difference between the Corporation Asset and its liability
Stockholders' equity for Oriole company can be derived using : Common stock + Retained earnings - Treasury stock
Stockholders' equity = 1,610,000 + 782,000 - 217,000
Stockholders' equity = $ 2,175,000.
We also need to know that deferred income taxes is not a component of stockholders' equity thus it will not be considered in stockholders' equity calculation.
Correct answer is $ 21,75,000.
Which of the following statements concerning the selection of risk management techniques and insurance market conditions is (are) true? I.It's easier to purchase affordable insurance during a "soft" market than during a "hard" market.II.Retention is used more during a "soft" market than during a "hard" market.I onlyII onlyboth I and IIneither I nor II
Answer:
I.It's easier to purchase affordable insurance during a "soft" market than during a "hard" market
I only
Explanation:
When a purchaser of insurance wants to make a purchase he analyses the market to get a favourable condition that reduces risk and loss.
The market condition can be a soft market or hard market.
Soft market is one in which potential sellers are more than potential buyers. So supply exceeds demand. Buyers are able to buy affordable insurance.
Hard market on the other hand is when there is an upswing in market cycle. Premiums increase and capacity for insurance decreases.
It is more difficult to get affordable insurance in this market
Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 25 million bottles of wine were sold every month at a price of $6 per bottle. After the tax, 20 million bottles of wine are sold every month; consumers pay $8 per bottle (including the tax), and producers receive $5 per bottle. The amount of the tax on a bottle of wine is_____________ $ per bottle. Of this amount, the burden that falls on consumers is_________ $ per bottle, and the burden that falls on producers is $___________ per bottle.?
Answer:
Explanation:
From the question, we are informed that before the tax, 25 million wine bottles were sold at price of $6 per bottle and that after the tax, 20 million bottles of wine are sold every month and the consumers pay $8 per bottle which include the tax and producers receive $5 per bottle.
The amount of tax on wine will be the difference between the price consumers pay after the tax and the price producers receive. This will be:
= $8 - $5
= $3 per bottle
The tax burden that falls on the consumers will be difference between price paid after tax and the price which is paid before the tax.
= $8 - $6
= $2 per bottle
The tax burden on the producers will be difference between price received before the tax and price received after the tax.
= $6 - $5
= $1 per bottle
Ronald, Inc. had the following balances and transactions during 2017: What is the amount of the company's Merchandise Inventory, as disclosed in the December 31, 2017 balance sheet, using the periodic weighted-average inventory costing method
Answer: $707
Explanation:
Using the Periodic System means that inventory is updated per period. This means that using the Weighted Average method, Ending Inventory prices will be calculated on the basis of all inventory in the period.
Weighted Average Method aims to ascribe a single price to all the inventory units sold by a company and so divides the entire cost by the number of units.
Number of Units bought in 2017,
Opening Balance = 12 units
June 10 = 24 units.
= 12 + 24
= 36 units.
Cost of the the 36 units
= (12 * 91) + (24 * 87)
= $3,180
Weighted Average Cost,
= 3,180/36
= $88.33
During the year they sold 28 units (10 + 18) meaning that 8 units (36 - 28) were left.
The closing Inventory on the 12/31/2020 therefore is,
= 8 * 88.33
= $706.66
= $707
Alfred is saving up money for a down payment on a townhouse. He currently has $5016$ 5016, but knows he can get a loan at a lower interest rate if he can put down $5994$ 5994. If he invests the $5016$ 5016 in an account that earns 4.4%4.4% annually, compounded monthly, how long will it take Alfred to accumulate the $5994$ 5994? Round your answer to two decimal places, if necessary.
Answer:
It will take Alfred to accumulate the $5994 annually 4.1367 and monthly 4.0557
Explanation:
In order to calculate how long will it take Alfred to accumulate the $5994 we would have to use the following formula:
A=P(1+r/n)∧n*t
P=$5,016
A=$5994
r=4.4%
n=1 annually
n=12 monthly
Therefore, t annually would be as follows:
5,994=$5,016(1+(4.4%/100)/1)∧1*t
t=4.1367
Therefore, t monthly would be as follows:
5,994=$5,016(1+(4.4%/100)/12)∧12*t
t=4.0557
It will take Alfred to accumulate the $5994 annually 4.1367 and monthly 4.0557
Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 49 range instruments and 297 pressure gauges were produced, and overhead costs of $88,560 were estimated. An analysis of estimated overhead costs reveals the following activities.
Activities Cost Drivers Total Cost
1. Materials handling Number of requisitions $38,850
2. Machine setups Number of setups 26,190
3. Quality inspections Number of inspections 23,520
$88,560
The cost driver volume for each product was as follows.
Cost Drivers Instruments Gauges Total
Number of requisitions 420 630 1,050
Number of setups 225 260 485
Number of inspections 265 225 490
Determine the overhead rate for each activity.
Overhead Rate
Materials handling $
Machine setups $
Quality inspections $
Assign the manufacturing overhead costs for April to the two products using activity-based costing.
Instruments Gauges
Total cost assigned $ $
Overhead cost per Unit $ $
Answer and Explanation:
1. The computation of overhead rate for each activity is shown below:-
Overhead rate for each activity Overhead Rate
Materials handling 37
($38,850 ÷ 1,050)
Machine setups 54
($26,190 ÷ 485)
Quality inspections 48
(23,520 ÷ 490)
2. The computation of assignment of manufacturing overhead costs for April to the two products using activity-based costing is shown below:-
Assignment of Instruments Gauges
manufacturing
overhead costs
Materials handling $37 × 420 $15,540 $37 × 63 $23,310
Machine setups $54 × 225 $12,150 $54 × 260 $14,040
Quality inspections $48 × 265 $12,720 $48 × 225 $10,800
Total cost assigned $40,410 $48,150
Overhead cost
per Unit $40,410 ÷ 49 $824.69 $48,150 ÷ 297 $162.12
Therefore we have applied the above formula.
Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with retirement income of $28,000 per month for 25 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Rivendell in 10 years at an estimated cost of $380,000. Third, after he passes on at the end of the 25 years of withdrawals, he would like to leave an inheritance of $1,700,000 to his nephew Frodo. He can afford to save $3,300 per month for the next 10 years. If he can earn an EAR of 10 percent before he retires and an EAR of 7 percent after he retires, how much will he have to save each month in years 11 through 30?
Answer:
He would have to save each month in years 11 through 30 the amount of $2,279.60
Explanation:
Because the cash flows occur monthly, we must get the effective monthly rate. One way to do this is to find the APR based on monthly compounding, and then divide by 12. So, the pre-retirement APR is:
EAR = .11 = [1 + (APR/12)] 12- 1;
APR = 12[(1.11) 1/12- 1] = .1048 or 10.48%
And the post-retirement APR is:
EAR = .08 = [1 + (APR/12)] 12 -1
APR = 12[(1.08) 1/12 -1] = .0772 or 7.72%
First, we will calculate how much he needs at retirement. The amount needed at retirement is the PV of the monthly spending plus the PV of the inheritance. The PV of these two cash flows is:
PVA = $24500{1 -[1/(1 + .0772/12) 12(25) ]}/(.0772/12) = $3,252,096.21
PV = $1525,000/[1 + (.0772/12)] 300 = $222,723.58
So, at retirement, he needs:
$3,252,096.21+ $222,723.58= $3474819.79
He will be saving $2,600 per month for the next 10 years until he purchases the cabin. The value of his savings after 10 years will be:
FVA = $2,600[{[1 + (.1048/12)] 12(10) -1}/(.1048/12)] = $547,487.10
After he purchases the cabin, the amount he will have left is:
$547,487.10 -345,000 = $202487.10
He still has 20 years until retirement. When he is ready to retire, this amount will have grown to:
FV = $202487.10[1 + (.1048/12)] 12(20) = $1632023.27
So, when he is ready to retire, based on his current savings, he will be short:
$3474819.79-1632023.27 = $1842796.52
This amount is the FV of the monthly savings he must make between years 10 and 30. So, finding the annuity payment using the FVA equation, we find his monthly savings will need to be:
FVA = $1842796.52 = C [{[ 1 + (.1048/12)] 12(20) -1}/(.1048/12)]
C = $2,279.60
He would have to save each month in years 11 through 30 the amount of $2,279.60
Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $16,600,000 of five-year, 11% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 12%, resulting in Chin Company receiving cash of $15,989,036. a. Journalize the entries to record the following: Issuance of the bonds. First semiannual interest payment. The bond discount amortization, using the straight-line method, is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) Second semiannual interest payment. The bond discount amortization, using the straight-line method, is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) For a compound transaction, if an amount box does not require an entry, leave it blank. Round your answers to the nearest dollar.
Answer:
The answer to the question is as attached
Explanation:
a. The total credit matches the debit in a total of $16,600,000
b. Cash $$15989036
Discount on bonds payable (16600000 -15989036) $610964
Bonds payable $16600000
(To record issuance of bonds)
b) Interest expense 825000+610964= $1435964
Discount on bonds payable 610964/11= $55542
Cash 16600000*11%*6/12= $913000
(To record discount amortized and interest paid)
c) Interest expense 825000+55542= $880542
Discount on bonds payable 610964/11= $55542
Cash 16600000*11%*6/12= $913000
Listed below are several transactions. For each transaction, indicate whether the ca financing, or noncash activity. Also, indicate whether the transaction is a cash inflow
Also, indicate whether the transaction is a cash inflow or cash outflow, or has no effect on cash. 1. Payment of employee salaries. 2. Sale of land for cash. Investing 3. Purchase of rent in advance. 4. Collection of an account receivable. 5. Issuance of common stock. 6. Purchase of inventory 7. Collection of notes receivable. 8. Payment of income taxes. 9. Sale of equipment for a note receivable. 10. Issuance of bonds. 11. Loan to another firm. 12. Payment of a long-term note payable. 13. Purchase of treasury stock. 14. Payment of an account payable. 15. Sale of equipment for cash.
Answer:
1. Operating and Cash outflow: Payment of employee salaries.
2. Investing and Cash inflow: Sale of land for cash. Investing
3. Operating and Cash outflow: Purchase of rent in advance.
4. Operating and Cash inflow: Collection of an account receivable.
5. Financing and Cash inflow: Issuance of common stock.
6. Operating and Cash outflow: Purchase of inventory
7. Investing and Cash inflow: Collection of notes receivable.
8. Operating and Cash outflow: Payment of income taxes.
9. Noncash activity, so no effect: Sale of equipment for a note receivable.
10. Financing and Cash inflow: Issuance of bonds.
11. Investing and Cash outflow: Loan to another firm.
12. Financing and Cash outflow: Payment of a long-term note payable.
13. Financing and Cash outflow: Purchase of treasury stock.
14. Operating and Cash outflow: Payment of an account payable.
15. Investing and Cash inflow: Sale of equipment for cash.
Explanation:
A statement of cash flow is a financial statement that gives the aggregate cash inflow and cash outflow in an organization during an accounting period. The three categories of statement of cash flows are investing activities, financing activities, and operating activities.
1. Investing activities are essentially the cash activities with respect to non-current assets such as sale of equipment for cash.
2. Financing activities refers to cash activities with respect to owners’ equity and non-current liabilities such as purchase of treasury stock.
3. Operating activities are mainly the cash activities with respect to net income such as payment of employee salaries.
Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $254,800, and the sales mix is 40% bats and 60% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $40 $30 Gloves 100 60 a. Compute the break-even sales (units) for the overall enterprise product, E. units b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point
Answer:
a)Break-even sales in units= 9,100 units
b)The number of units of each products:
Bat= 3,640 units
Gloves= 5,460 units
Explanation:
The break-even sales in unit = total general fixed cost/Average contribution per unit
Average contribution per unit = (40%× (40-30) )+ (60%×(100-60) )=28
Break-even Sales = $254,800/$28=9100 units
Break-even sales in units= 9,100 units
The number of units of each products:
Bat = 40%×9100 =3,640 units
Gloves = 60%× 9,100 =5,460 units
Bat= 3,640 units
Gloves= 5,460 units
=
Laurie saved for six months to have enough money to buy a new designer outfit to wear to a special party. She had to travel to a larger city to purchase this outfit, but it was worth it to her because it made her feel beautiful and confident. The difference between the benefits Laurie perceived from this purchase and the cost to her to acquire these benefits describes her _____.
Answer: B) customer value
Explanation:
Customer Value refers to the perception of what the good in question is worth to the customer buying it as opposed to other alternatives. Essentially, how much is it worth to the buyer vs the opportunity costs of buying it. The customer values a good when they feel like they gained more benefits than they paid for or that it was an equal trade-off and so do not mind the cost.
Laurie gained confidence and felt beautiful as a result of the attire and so decided that the cost was worth it.
Worth refers to whether the consumer feels he or she received more benefits and services than he or she paid for.
What is the customer Value?Customer value is the financial compensation that a customer receives in exchange for the amount paid for a market item.
In general, a client evaluates the net benefits of one item to those of its prospective alternatives. It aids in determining whether the client believes they received adequate value for the cost of the offering.
Thus, Option B is correct about Laurie.
For more information about Customer Value refer to the link:
https://brainly.com/question/15236362
1. How has an understanding of consumer behavior helped Coppertone grow in the United States and around the globe? 2. Describe the five-stage purchase decision process for a Coppertone customer. 3. What are the possible situational, psychological, and sociocultural influences on the Coppertone consumer purchase decision process? Situational Psychological Sociocultural 4. What specific marketing activities does Coppertone utilize to help Coppertone grow in the marketplace? 5. What challenges does Coppertone face in the future? What actions would you recommend related to each challenge?
Answer: The answers are provided below
Explanation:
1. The understanding of consumer behavior which has helped Coppertone grow in the United States and around the world are:
• Its understanding of consumer behavior was along with changing behaviour of consumers.
• Its understanding was along with consumer's changing needs.
• Providing innovative solutions that are in accordance with consumer preferences.
Note that at the beginning, Coppertone started as a tanning product, but later developed nee products when the consumers preferences changed from tanning to skin protection.
2. . The Five stage purchase decision process for a Coppertone customer are:
a. Problem recognition - This is the stage of understanding the problem.
b. Search for information. It is the stage of seeking solution to the problem
c. Comparision of alternatives - This is the stage where the comparative analysis is done. This stage is influenced by the product, price, availability etc.
d. Decision of purchasing - This is the stage of decision making that is based on the comparisons made.
e. Post-purchase feedback - This is the stage whereby the consumer will evaluate the product performance. This stage is vital to retaining existing consumers.
3. The factors that can influence the Coppertone consumer purchase decision process are:
• Psychological: It is the intention of consumers to protect their skin from the sun while going out thereby maintaining their good look.
• Sociological : It is in human behaviour to replicate the things that are being done by other people in the society.
• Situational Factor: This is a case whereby consumers are left with no other alternatives than purchasing a particular product brand to meet their need.
4. The marketing activities Coppertone utilized to help it grow in the marketplace are:
• Advertisment: Coppertone advertisment strategy really worked through its use of the advertisement campaign for “the Coppertone Girl” and also their famous tagline “Tan, Don’t Burn.” This helped spar the product’s popularity.
• Use of social media: They also engage with their customers on social media nd other websites.
5. The challenges that would be faced by Coppertone in the future are:
• There will be an unbalanced demand and supply since the requirement of the product is seasonal.
• Selective usage of the product by the customer can hampers the sale.
• There may be the need for more innovative products in order to meet customer needs.
The recommendation related to each challenges are:
• Awareness should be created among the customers about their self health and looks, in order for them to shift away from seasonal usage.
• New products should be launched aggressively. This is because customers are trendy nowadays and also appealing marketing techniques should be used.
1. When The understanding of consumer behavior that has helped Coppertone grow in the United States and around the world are:
Although, Its understanding of consumer behavior was along with changing the behavior of consumers.
Then Its understanding was along with consumers' changing needs.
Consumer behaviorAlso when Providing innovative solutions that are under consumer preferences.
Note that at the beginning, Coppertone started as a tanning product, but later developed nee products when the consumer's preferences changed from tanning to skin protection.
2. When The Five stage purchase decision process for a Coppertone customer are:
a. Problem recognition - This is the stage of understanding the problem.
b. Search for information- It is the stage of seeking a solution to the problem
c. Comparison of alternatives - This is the stage where the comparative analysis is done. This stage is influenced by the product, price, availability, etc.
d. Decision of purchasing - This is the stage of decision-making that is based on the comparisons made.
e. Post-purchase feedback - This is the stage whereby the consumer will evaluate the product performance. This stage is vital to retaining existing consumers.
3. When The factors that can influence the Coppertone consumer purchase decision process are:
Psychological: Consumers intend to protect their skin from the sun while going out thereby maintaining their good look.
Sociological: It is in human behavior to replicate the things that are being done by other people in society.
Situational Factor: This is a case whereby consumers are left with no other alternatives than purchasing a particular product brand to meet their needs.
4. When The marketing activities Coppertone utilized to help it grow in the marketplace are:
The Advertisement: when the Coppertone advertisement strategy worked through its use of the advertisement campaign for “the Coppertone Girl” and also their famous tagline “Tan, Don’t Burn.” This helped spar the product’s popularity.
Use of social media: They also engage with their customers on social media and other websites.
5. The challenges that would be faced by Coppertone in the future are:
There will be an unbalanced demand and supply since the requirement of the product is seasonal.
Then Selective usage of the product by the customer can hamper the sale.
There may be a need for more innovative products to meet customer needs.
The recommendation related to each challenge are:
Awareness should be created among the customers about their self-health and looks, for them to shift away from seasonal usage.
New products should be launched aggressively. This is because customers are trendy nowadays and also appealing marketing techniques should be used.
Find out more information about consumer behavior here:
https://brainly.com/question/26324990
Describe a problem you face in your everyday life or at work. How might you use hypothesis testing to find a solution or improvement to that problem? Would you conduct a one-sample or two-sample test? What would be your null and alternative hypotheses?
Answer:
The common problem i encounter mostly is the statistical modelling problem.
In this scenario we choose best combination of independent variables for the hypothesis testing. the independent variable shows the significant effect on dependent variable so we keep it in modelling.
My null hypothesis would be that there is no significant effect of independent variable on dependent variable. for my alternative hypothesis there exist is significant effect of independent variable on dependent variable.
Explanation:
The common problem I face daily is the statistical modelling problem which is the selection of relevant independent variable for prediction modelling.
In this example to select the best combination of independent variables we use hypothesis testing. if the independent variable has significant effect on dependent variable then the independent variable shows the significant effect on dependent variable so we keep it in modelling. In this way the model gets improved.
Since there are always two variables or two categories. hence it has a two sample test.
The Hypothesis can be shown below:
Null hypothesis:
H0: There is no significant effect of independent variable on dependent variable.
Alternative hypothesis:
Ha: There is significant effect of independent variable on dependent variable.
The W.C. Pruett Corp. has $200,000 of interest-bearing debt outstanding, and it pays an annual interest rate of 11%. In addition, it has $700,000 of common stock on its balance sheet. It finances with only debt and common equity, so it has no preferred stock. Its annual sales are $1 million, its average tax rate is 35%, and its profit margin is 8%. What are its TIE ratio and its return on invested capital (ROIC)? Round your answers to two decimal places.
Answer:
a. Times Interest Earned (TIE) Ratio = 6.59 times
b. Return on invested capital (ROIC) = 10.48%
Explanation:
To estimate these, we have to first calculate the following:
Interest expenses = $200,000 * 11% = $22,000
Net income = Profit margin * Annual sales = 8% * $1,000,000 = $80,000
Income before tax = Net income / (1 - Average tax rate) = $80,000 / (1 - 35%) = 123,076.92
Tax = Income before tax * Tax rate = $123,076.92 * 35% = $43,076.92
Earning before interest and tax (EBIT) = Net income + Interest expenses + Tax = $80,000 + $22,000 + $43,076.92 = $145,076.92
Net operating profit after tax (NOPAT) = EBIT * (1 - Average tax rate) = $145,076.92 * (1 - 35%) = $94,300
Invested capital = Common stock + Interest-bearing debt outstanding = $200,000 + $700,000 = $900,000
a. What are its TIE ratio?
Times Interest Earned (TIE) Ratio = EBIT / Interest expenses = $145,076.92 / $22,000 = 6.59 times
This indicates that the income of the W.C. Pruett Corp. is 6.59 times greater than its annual interest expense.
b. What are its return on invested capital (ROIC)?
ROIC = NOPAT / Invested capital = $94,300 / $900,000 = 0.1048, or 10.48%
Process Costing using First-in-First Out (FIFO) Crone Corporation uses the FIFO method in its processing costing system. The following data concern the company's Assembly Department for the month of October.
Cost in beginning work in process inventory $1,920
Units started and completed this month 3,130
Materials Conversion:
Cost per equivalent unit $9.50 $20.40
Equivalent units required to complete the units in
beginning work in process inventory 360 140
Equivalent units in ending work in process inventory 330 264
Required:
a. Determine the cost of ending work in process inventory
b. Determine the cost of units transferred out of the department during October.
Answer:
Cost of ending inventory= $8,520.6
Total cost of units transferred out=$99,863
Explanation:
Cost of ending inventory
Cost of items of inventory = cost per equivalent unit × No of units
Cost of items of inventory = ($9.50×330) + ($20.40 × 264)= $8,520.6
Total cost of units transferred out
The FIFO method of valuation of working in progress separates the units transferred out into opening inventory and fully worked.
The fully worked represents the units of inventory started and completed in the sames period.
The cost of units transferred out is the sum of h opening inventory and he fully worked. This done below:
Opening inventory = ($9.50 × 360) + ($20.40×140)= 6276
Transferred of fully worked = $(9.50 +$20.40) × 3,130= 93,587
Total cost of units transferred out = (6276 +93587)= $99,863
Todd can afford to pay $375 per month for the next 7 years in order to purchase a new car. The interest rate is 6.5 percent compounded monthly. What is the most he can afford to pay for a new car today
Answer:
The most he can afford to pay = $25,260.07
Explanation:
The most he can afford to pay is the present value of the $375 per month discounted at the interest rate of return of 6.5% p.a
PV = A× (1- (1+r)^(-n))/r
PV = ?, A- 375, r- 6.5/12= 0.541% n= 12×7 = 84
PV = 375× (1- (1.00541)^(-84) )/0.00541= 25260.071
The most he can afford to pay = $25,260.07
Note: the monthly interest rate needed to be computed by dividing 6.5% by 12 and the number of months in 7 years is 7 × 12 = 84
In 2021, the Marion Company purchased land containing a mineral mine for $1,150,000. Additional costs of $448,000 were incurred to develop the mine. Geologists estimated that 310,000 tons of ore would be extracted. After the ore is removed, the land will have a resale value of $110,000.
To aid in the extraction, Marion built various structures and small storage buildings on the site at a cost of $102,300. These structures have a useful life of 10 years. The structures cannot be moved after the ore has been removed and will be left at the site. In addition, new equipment costing $51,500 was purchased and installed at the site. Marion does not plan to move the equipment to another site, but estimates that it can be sold at auction for $5,000 after the mining project is completed.
In 2021, 41,000 tons of ore were extracted and sold. In 2022, the estimate of total tons of ore in the mine was revised from 310,000 to 397,500. During 2019, 71,000 tons were extracted, of which 51,000 tons were sold.
Required:
a. Compute depletion and depreciation of the mine and the mining facilities and equipment for 2018 and 2019. Marion uses the units-of-production method to determine depreciation on mining facilities and equipment.
b. Compute the book value of the mineral mine, structures, and equipment as of December 31, 2019.
Answer:
Marion Company
a1) Depletion of the Mine for two years:
2018: 41,000/310,000 * $1,488,000 = $196,800
2019: 51,000/397,500 * $1,488,000 = $190,913
a2) Depreciation of Mining Facilities:
2018: 41,000/310,000 *$102,300 = $13,530
2019: 51,000/397,500 * $102,300 = $13,125
a3) Depreciation of Mining Equipment
2018: 41,000/310,000 *$46,500 = $6,150
2018: 51,000/397,500 * $46,500 = $5,966
b) Book Values December 31, 2019:
1) Mineral Mine:
Cost = $1,598,000
Accumulated Depletion $387,713 (2018 & 2019)
Book Value = $1,210,287
b2) Structures:
Cost = $102,300
Accumulated Depreciation $26,655 (2018 & 2019)
Book Value = $75,645
b3) Equipment:
Cost = $51,500
Accumulated Depreciation $12,116
Book Value = $39,384
Explanation:
a) Cost of Mine:
Land $1,150,000
Development $448,000
Less Resale ($110,000)
Total cost = $1,488,000
b) Cost of Facilities or Structure:
Building cost = $102,300
c) Cost of Equipment = $51,500 - $5,000 = $46,500
d) Depletion is an accrual accounting technique used to allocate the cost of extracting natural resources. It is like depreciation and amortization, which lower the cost value of an asset incrementally through periodic charges to income.
e) Depreciation is an accounting method for allocating the cost (the value used up) of a tangible or physical asset over its useful life.
Using the table below, select "X" in the column that corresponds to the type of activity level referred to in each scenario.
Unit Batch Product Customer Organizational
A. Setting up a machine for a production run of 500 units.
B. Conducting a seminar for local doctors on the benefits of a new drug.
C. Embossing a company logo on every product made.
D. Seating a party of 11 at a restaurant.
E. Providing technical support for two years following a sale.
F. Managing a corporation's accounting department.
G. Attaching a price tag to each product.
H. Issuing an invoice.
I. Developing a corporate advertising campaign.
J. Recalling a defective product.
Answer: Please refer to Explanation
Explanation:
The question seeks to find out the activity level of the above mentioned activities.
There are various activities in an organization and as such they need to be categorized. The various categories include Unit, Batch, Product, Customer, and Organizational.
Unit Activities refer to activities done on a unit level. A singular product level. They include things like putting a logo on a bottle or deriving a single person at a restaurant.
Batch Activities refer to activities done when Units are grouped together and form a batch. Activities done to that batch fall under here.
Product Level Activities refer to those done on a product wide scale. That means that when the entire product is affected, it falls under here. Examples include Product Advertising or Recall.
Customer Level Activities refer to those that an organization engages in for those entities that patronize them. Such activities are very important because the customer is the most important aspect of the business.
Then there are the Organizational level Activities. As the name implies, these are activities at an Organization wide level.
Classifying the above therefore,
A. Setting up a machine for a production run of 500 units. BATCH LEVEL ACTIVITY.
This deals with a group of units, 500 to be precise and so is a batch level activity.
B. Conducting a seminar for local doctors on the benefits of a new drug. PRODUCT LEVEL.
This seminar will speak on the product being the drug as a whole therefore it is product level.
C. Embossing a company logo on every product made. UNIT LEVEL.
This involves an individual unit at a time and so is at Unit Level.
D. Seating a party of 11 at a restaurant. BATCH LEVEL.
The 11 people to be served are individual units that have now been grouped together into one batch so is a Batch Level Activity.
E. Providing technical support for two years following a sale. CUSTOMER LEVEL ACTIVITY.
This is about providing help to the company's customers so it falls under Customer Level Activities.
F. Managing a corporation's accounting department. ORGANIZATIONAL LEVEL ACTIVITY.
This involves the Corporation's entire accounting department and so is Organizational level.
G. Attaching a price tag to each product. UNIT LEVEL.
Attaching prices will be done to each individual unit and so it a Unit level activity.
H. Issuing an invoice. CUSTOMER LEVEL ACTIVITY.
Issuing an invoice is done when a sale is complete. Sales are done to customers so this is a customer Level Activity.
I. Developing a corporate advertising campaign. ORGANIZATIONAL LEVEL ACTIVITY.
This is has to do with advertising the company as a whole and so is an Organizational level Activity.
J. Recalling a defective product. PRODUCT LEVEL ACTIVITY.
By recalling an entire product, this Activity falls under the Product Level because it deals with the product as a whole. For example, Toyota recalling all cars of a certain model for safety reasons.
2. Which of the following is an example of the globalization of production? a. Pepsico sells the same brand of pringles in multiple markets but with flavors talilored to local tastes. b. The World Trade Organization forces Venezuela to change its gasoline grade to conform to the US Clean Air Act. c. Ford manufactures a car in Michigan, but uses parts sourced from 27 countries. d. All of the above.
Answer: Ford manufactures a car in Michigan, but uses parts sourced from 27 countries
Explanation:
Globalization is the process by which businesses or organizations develop international influence or a situation whereby they start operating on international scale.
Globalization of production has to do with the producers of final finished goods relocating and moving to other parts of the world in order to source for the necessary raw materials or equipments needed to complete a product and assemble all of them at their facility.
Based on this definition, Ford manufactures a car in Michigan, but uses parts sourced from 27 countries is the right answer.
Answer: c. Ford manufactures a car in Michigan, but uses parts sourced from 27 countries
Explanation:
Globalization of production entails when companies source or gather best materials or services from other countries in order to incorporate it to the manufacturing or establishment of the final product in another country so as to get the best reduced cost in production with best materials or services.
Ford manufactures a car in Michigan, but uses parts sourced from 27 countries follows the Globalization of production.
Question Workspace Exhibit 3-5 Supply for Tucker's Cola Data Quantity supplied per week (millions of gallons) Price per gallon 6 $3.00 5 2.50 4 2.00 3 1.50 2 1.00 1 .50 Exhibit 3-5 shows the supply schedule for Tucker's Cola. Suppose there are four additional suppliers of cola in the market. When the price per gallon of cola is $1.50, the first supplier is willing to sell 10 million gallons, the second supplier is willing to sell 2 million gallons, the third supplier is willing to sell 5 million gallons, and the fourth supplier is willing to sell 0 gallons. The market quantity supplied of cola when the price is $1.50 is
Answer:
20 million gallons
Explanation
The market quantity supplied can be found by adding the quanirty supplied of the 5 suppliers.
When price is $1.5, tucker supplies 3 million gallons
3 + 10+2 + 5 + 0 = 20
I hope my answer helps you
Avril Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $4.60 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $54,080 per month, which includes depreciation of $3,840. All other fixed manufacturing overhead costs represent current cash flows. The direct labor budget indicates that 3,200 direct labor-hours will be required in October. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for October should be:
Answer:
Estimated manufacturing overhead rate= $21.5 per direct labor hour
Explanation:
Giving the following information:
The variable overhead rate is $4.60 per direct labor-hour.
Budgeted fixed manufacturing overhead is $54,080 per month
The direct labor budget indicates that 3,200 direct labor-hours will be required in October.
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= (54,080/3,200) + 4.6
Estimated manufacturing overhead rate= $21.5 per direct labor hour
Speed, size, and strength are thought to be important factors in football performance. The article "Physical and Performance Characteristics of NCAA Division I Football Players" (Research Quarterly for Exercise and Sport [1990]: 395–401) reported on physical characteristics of Division I starting football players in the 1988 football season. Information for teams ranked in the top 20 was easily obtained, and it was reported that the mean weight of starters on top-20 teams was 105 kg. A random sample of 33 starting players (various positions were represented) from Division I teams that were not ranked in the top 20 resulted in a sample mean weight of 103.3 kg and a sample standard deviation of 16.3 kg. Is there sufficient evidence to conclude that the mean weight for non-top-20 starters is less than 105, the known value for top-20 teams?
Answer:
no
Explanation:
H0: mean of sample=105
Ha: mean of sampe≠ 105
t-statistic= (population mean-sample mean)/(standard deviation/√sample size)
t-statistic= (105-103.3)/(16.3/√33)
t-statistic= 0.5991
degress of freedom= 32
for alpha 0.05, p-value from t-distributino table is 1.697
since t-statistic is less than the p-value, null hypothesis is accepted.
There is no sufficient evidence to conclude that the mean weight for non-top-20 starters is less than 105 the known value for top-20 teams
What is SHREK testing?
Answer:
the ogre
Explanation:
Hoosier Corporation declared a 2-for-1 stock split to all shareholders of record on March 25 of this year. Hoosier reported current E&P of $600,000 and accumulated E&P of $3,000,000. The total fair market value of the stock distributed was $1,500,000. Barbara Bloomington owned 1,000 shares of Hoosier stock with a tax basis of $100 per share.a) What amount of taxable dividend income, if any, does Barbara recognize this year? Assume the fair market value of the stock was $150 per share on March 25 of this year.b) What is Barbara's income tax basis in the new and existing stock she owns in Hoosier Corporation, assuming the distribution is tax-free?c) How does the stock dividend affect Hoosier's accumulated E&P at the beginning of next year?
Answer:
(a) The stock dividend is not taxable because it affects all shareholders pro rata
(b) Babara will transfer half of the old stock base to the new stock and make her new and old stock tax base $50
(c) Hoosier does not change his E&P for the stock dividend since the shareholders are not taxable.
Explanation:
You have a portfolio that is invested 17 percent in Stock A, 38 percent in Stock B, and 45 percent in Stock C. The betas of the stocks are .62, 1.17, and 1.46, respectively. What is the beta of the portfolio
Answer:
The portfolio beta is 1.207
Explanation:
The portfolio beta is the weighted average of the individual stock betas that form up the portfolio. The weightage of each stock in the portfolio is calculated on the basis of investment in that stock as a proportion of total investment in the portfolio. The portfolio beta is calculated as follows,
Portfolio beta = Weight of Stock A * Beta of Stock A + Weight of Stock B * Beta of Stock B + ... + Weight of Stock N * Beta of Stock N
Portfolio beta = 0.17 * 0.62 + 0.38 * 1.17 + 0.45 * 1.46
Portfolio beta = 1.207
The State of Idaho issued $2,000,000 of 7% coupon, 20-year semiannual payment, tax-exempt bonds 5 years ago. The bonds had 5 years of call protection, but now the state can call the bonds if it chooses to do so. The call premium would be 5% of the face amount. Today 15-year, 5%, semiannual payment bonds can be sold at par, but flotation costs on this issue would be 2%. What is the net present value of the refunding? Because these are tax-exempt bonds, taxes are not relevant.
Answer:
$278,606
Explanation:
Calaculation of the net present value of the refunding:
The first step is to calculate call premium :
Call premium= 2,000,000 x 5%
= 100,000
Second step is to calculate the Flotation cost
Flotation cost = 2,000,000 x 2%
= 40,000
Calculation for Old interest = 2,000,000 x (7% / 2) = 70,000
Caluclatio fo New interest = 2,000,000 x (5% / 2) = 50,000
Therefore the Six months savings will be:
20,000 70,000 + 50,000 + 20,000 = 140,000
The PV of savings 30 periods 5% / 2 will be:
20,000 x 20.9303 = 418,606
Therefore the Net Present Value of the refunding will be:
418,606- 140,000
= $278,606
A travel agent wants to determine how much the average client is willing to pay for a weekend at an all-expense paid resort. The agent surveys 30 clients and finds that the average willingness to pay is $2,500 with a standard deviation of $840. However, the travel agent is not satisfied and wants to be 95% confident that the sample mean falls within $150 of the true average. What is the minimum number of clients the travel agent should survey
Answer:
[tex]n=(\frac{1.960(840)}{150})^2 =120.47 \approx 121[/tex]
So the answer for this case would be n=12 rounded up to the next integer
Explanation:
[tex]\bar X=2500[/tex] represent the sample mean
[tex]\mu[/tex] population mean (variable of interest)
s=840 represent the sample standard deviation
n represent the sample size
The margin of error is given by this formula:
[tex] ME=z_{\alpha/2}\frac{\sigma}{\sqrt{n}}[/tex] (a)
And on this case we have that ME =150 and we are interested in order to find the value of n, if we solve n from equation (a) we got:
[tex]n=(\frac{z_{\alpha/2} \sigma}{ME})^2[/tex] (b)
The critical value for 95% of confidence interval, the significance level if 5% and the critical value would be [tex]z_{\alpha/2}=1.960[/tex], replacing into formula (b) we got:
[tex]n=(\frac{1.960(840)}{150})^2 =120.47 \approx 121[/tex]
So the answer for this case would be n=12 rounded up to the next integer
A basic finding of labor economics is that workers who have more experience in the labor force are paid more than workers who have less experience (holding constant the amount of formal education). True or False: This might be the case because more experience decreases the value of the marginal product of labor. True False Some studies have also found that experience at the same job (called job tenure) has an extra positive influence on wages. Job tenure is valuable because people gain that is useful to the firm.
Answer:
A. TRUE
B1. TRUE
B2. Job Specific Knowledge
Explanation:
1. TRUE because more experience will definitely means more on-the-job training because the employee has gain different experience from either same field or different field which will inturn help to increase the worker's value of the marginal product of labor which is why workers who have more experience in the labor force are tend to be paid more than workers who have less experience or no experience.
B1. TRUE because experience gain at the same job will definitely lead to an extra positive influence on wages.
B2. Job tenure is valuable because people will tend to be able to gain JOB SPECIFIC KNOWLEDGE that is useful to the firm.
JOB SPECIFIC KNOWLEDGE: can be defined as the way in which workers or an employee shows his or her abilities, skills and strengths in order to excel in that specific job which is why employers of labour will often include the skill that is required for the employee to be able to perform the job in their job posting.
Answer:
Explanation:
The correct answer to the first question is false, not true. Trust me