Thorley Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC or negative, in both cases it will be rejected. Year 0 1 2 3 4 5 Cash flows -$1,100 $325 $325 $325 $325 $325 a. 15.18% b. 14.59% c. 11.24% d. 13.43% e. 16.20%

Answer: b) The total amount debited must equal the total amount credited

Explanation:

Journal entries on the debit side must always equal entries on the credit side. This is to fulfil the Accounting requirement of Double Entry where every entry in the books must have an equal and corresponding entry as well.

There can be multiple accounts represented in the journal entry but the amount on the credit side needs to balance with the amount on the debit side.

For example, a good to sold to Hillary by Trump for $30. Trump gives Hillary a discount of 10%. Trump will record that entry as,

DR Cash $27

DR Sales Discount $3

CR Accounts Receivable $30

Notice that the Debit side has 2 accounts but they still add up to the $30 on the Credit side.

Answer:

The cost of something is what you give up to get it.

Explanation:

To partake in triathlon, Sam is forgoing the amount he would have earned if he went to work instead. This is known as the opportunity cost or implicit cost

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

Sam has to pay $5 to partake in the triathlon. This amount is known as explicit cost. Explicit cost is the cost incurred in carrying out an activity.

Sam's accounting cost is $5

Sam's economic cost is $5 + $10 = $15

I hope my answer helps you

Answer:

(A) All three spend all their time washing cars

In 10 hours Rajiv will wash 10 cars, because he can wash 1 car per hour.

Yakov will also wash 10 cars because he can wash 1 car per hour.

And, Charles will wash 20 cars because he can wash 2 cars per hour.

(B) All three spend half their time on each activity.

In 5 hours, Rajiv will mow 10 lawns, and wash 5 cars.

Yakov will mow 5 lawns and wash 5 cars.

And Chalres will mow 5 lawns and wash 10 cars.

(C) Rajiv spends half his time on each activity, while Yakov only washes cars and Charles only mows lawns.

Rajiv will mow 10 lawns and wash 10 cars.

Yakov will wash 10 cars.

And Charles will mow 10 lawns.

(D) Identify the opportunity cost of washing cars for each worker.

For Rajiv, the opportunity cost of washing 1 car is not mowing 2 lawns.

For Yakov, the opportunity cost is not mowing 1 lawn.

For Charles, the opportunity cost is not mowing half a lawn.

Answer: The answer is provided below

Explanation:

a). The revenue here shows that

Wendover's patients were capitated. The is because the actual revenue figures were assumed to be $180, but it

later came to $300 which means that the revenue increased.

The reason is that a capitated patient provides fixed payment a year, while a fee for service client pays per usage. With this explanation, it can be concluded that majority of Wendover's patients are fee for service because the difference between static results and the actual results is very high.

) 1. Revenue variance

= Actual Revenues - Static budget

= $ 300 - $ 425

= - $125

2. Volume variance

= Flexible Revenue - Static Budget

= $ 200 - $ 425

= - $ 225

3. Price Variance

= Actual Revenues - Flexible Revenues

=$300 - $200

= $100

4. Enrollment variance

= Flexible Revenues - Static Budget

= $ 180 - $ 425

= - $ 245

5. Utilization variance

= Flexible Revenue- Flexible Budget

= $ 200 - $ 180

= $ 20

Answer:

Kindly check Explanation

Explanation:

The difference between capita tes and fee-for-service is how payment is made, In capitates, a fixed annual amount is paid whereby In fee-for-service, payment is made separately for each service demanded. Thus it could be concluded from the data they the patients are fee-for - service due to the difference in the static and actual figure provided.

Given the following :

Static Budget - $425

Flexible (Enrollment/ Utilization) -$200

Budget Flexible (Enrollment) Budget -$180

Actual Results - $300

B)

Revenue variance = (Actual Revenues - Static Revenue)

Revenue variance = ($300-$425) = -$125 (Unfavorable)

This shows that the Wendover have less patients who use the services.

Volume variance = (Flexible Revenues (enrollment and utilization) – Static Revenues)

Volume variance = ($200 – $425) = -$225

Price variance = (Actual Revenues – Flexible Revenue)

Price variance = ($300 - $200)

Price variance = $100 F

Price variance is favorable which means service charge is high.

Enrollment variance = (Flexible Revenues (enrollment) – Static Revenue)

Enrollment variance = $180 – $425 = -$245

Utilization variance =Flexible revenues (enrollment/utilization) - Budget Flexible (Enrollment) Budget

$200 - $180 = $20

Answer:

$30,000

Explanation:

Data provided in the question

Purchase value of the office supplies = $50,000

Expected to use supplies in the first year = 60%

So expected to use supplies in the second year = 40%

Based on the above information, the supplies account balance at the end of the first fiscal year is

= Purchase value of the office supplies × Expected to use supplies in the first year

= $50,000 × 60%

= $30,000

We simply multiplied the purchased value with the expected supplies use in the first year so that the balance of the supplies for the first year could come

Answer:

The ending inventory for Marin comapny is $1664460

Explanation:

Solution

An Inventory is computed by using the conventional retail inventory method. which is statted belwo:

Inventory computed  for Marin Company

                                                            Cost              Retail

Beginning of Inventory                 $103,820           $278,000

Purchases                                      1,402,000          2,152,000

Total                                               1505820            243,000

Add: Net Markups

Markups                                                                    93,600

Markup cancellations                                             -13,900

                                                                                 79700

Total                                               1505820            2509700

Deduct: Net Markdown

Markdown                                                                 34,600

Markdown cancellation                                           -5,000

                                                                                  29,600

Sales price of goods                                                2480100

Sales revenue                                                           2,206,000

The retail ending is                                                   274,100

Thus,

The retail cost ratio is =  1505820 /2509700 = 60%

Hence, the cost of Ending inventory becomes =  274,100 * 60%

= $1664460.                                                  

QUESTION COMPLETION:

TRANSACTIONS:

April 5 Shaff deposited $40,000 in a new business bank account titled Apr. Abraham Shaff, CPA. The business issued common stock to Shaff.

April 6 Paid $200 cash for letterhead stationery for new office

April 7 Purchased office furniture for the office on account, $8,000.

April 10 Consulted with tax client and received $2,900 for services rendered. 11 Paid utilities, $280.

April 12 Finished tax hearings on behalf of a client and submitted a bill for accounting services, $8,000.

April 18 Paid office rent, $1,700.

April 25 Received amount due from client that was billed on April 12

April 27 Paid full amount of accounts payable created on April 7

April 30 Cash dividends of $2,500 were paid to stockholders.

Answer:

See attached.

Explanation:

The question requires business events to be analyzed chronologically with each event's impact on the accounting equation.

The accounting equation states that Assets equal Liabilities plus Equity (Assets = Liabilities + Equity).  The implication of this equation is that given each business transaction, Assets will always be equal to Liabilities and Equity.  Two accounts or more are usually affected by each transaction.  It may be two assets accounts or one asset and liabilities, etc.  Expenses and Income impact the Retained Earnings, which is part of the Equity.

Assets are the resources owned by the business, while liabilities are financial obligations to third parties that contribute to the owned resources.  Equity is the funds contributed by the stockholders, including the earnings retained from business.  Equity, therefore, represents the ownership interest in the assets after liabilities have been deducted.

Answer: George's initial price markup over marginal cost was approximately 41.2% George's desired markup is 45% Since George's initial markup, or actual margin, was Less than his desired margin, raising the price was profitable

Explanation:

a) Price Elasticity of Demand = [(Q1-Q2)/(Q1+Q2)] / [(P1-P2)/(P1+P2)]

= 5000- 4000/4000+ 5000) /  8.50- 9.50 /8.50 ₊9.50 =

1000/8000 / -1/ 18 = 0.125/-0.055  = -2.2

George's initial price markup over marginal cost was approximately

when Marginal cost = $5

b)initial price markup  = Price - marginal cost / price = 8.50 - 5.00/ 8.50 =   0.412=  41.2%

C) George's  desired margin = 1/absolute value of price elasticity = 1/ 2.2= 0.45= 45%

.

D)Since George's initial markup or actual margin was less  than his desired margin, raising the price is profitable.

This is because When the  markup is lower than the margin,  business is running on a loss, so it is nessesary to increase price.

Answer:

The next  coupon rate that is needed to​ set is 5.00%

Explanation:

Solution

Recall that:

Your company presently has =$1,000 par

Coupon bonds = 6%

Maturity = 10 years

The next step is to find the coupon rate that is needed or required to set.

Now,

The number of semi annuals to maturity, NPER =  (10 YEARS * 2)= 20

Semiannual coupon payments, PMT = ($1000 * 6%/2) = $30

The current selling price per bond  (FV) = $1078

The maturity value at the end is = $1000

The semiannual compound type, = 0 (It is 0 if compounded at the end of each semiannual and is 1 if compounded at the start of each semiannual)

Semi annual interest rate is = 2.5%

Thus,

The number of semi annuals in a year is = 2

The annual coupon rate of bonds (new) = 2/50 % * 2

= 5.00%

It is important to note that the semi annual coupon rate is computed suing the excel function rate (nper, pmt, pv,  fv, type),

Whereby

PV =1078

NPR = 20

PMT =30

FV = 1000

TYPE = 0.

Answer:

The undervaluation penalty is $560

Explanation:

Solution

Under valuation penalty applied when a person valued assets understated to save tax.

The undervaluation reduces the tax and hence comes with accuracy related penalty.

From the example, Tim undervalued the gift of $7,000 which is valued at $15,000 by IRS.

The deduction is undervalued for more than 150% and hence penalty is assessed. this is so because the income tax valuation is lower than 40%, so the penalty rate is 20%

Thus,

The calculation of overvaluation penalty is given below:

Undervaluation = $8000

Tax rate = 35%

Tax amount = $2,800

Penalty rate = 20%

Penalty on undervaluation is =$560

Therefore, the undervaluation penalty is $560

Answer:

Option b is correct.

Explanation:

The statement in option ''b" is the correct option for laying emphasis on the main idea and de-emphasizing the minor ideas, that is;

"First, please make the changes to the second section of the proposal changes, and then have Jane proofread the entire proposal."

The above statement is a detailed one and shows the step by step instructions or requirements;

1." First, please make the changes to the SECOND SECTION of the proposal changes.''

The SECOND SECTION the writer mentioned lay emphasis on the second section of the proposal CHANGES AND NOT THE WHOLE.

2. "and then have Jane proofread the ENTIRE proposal"

The writer wants Jane to do the PROOFREADING of the ENTIRE proposal.

Answer:

Partnership General Journal to record Krug Investment

Cash                $1,400   (Debit)

Inventory         $2,800  (Debit)

Land                 $5,800  (Debit)

Notes Payable $3,400  (Credit)

Krug, Capital    $5,800  (Credit)

Explanation

i. The land and inventories will be accepted at his market value.

ii. Along with cash, this are assets which enter the partnership so they are debited.

iii. The note payable decreases the Krug capital contribution. It is credited.

iv. Krug capital account balance will be to complete the entry and make debit = credit.

Answer:

$138,000

Explanation:

Subsidiary is a company which is controlled by its parent. Potter Corporation acquired 90% stock in Shoemaker Company. The non controlling interest is 10% in Shoemaker Company. The company made a profit of $1,380,000. The 90% share will be allocated to the parent company and only 10% share will be allocated to the Non Controlling Interest.

Answer:

$96,000

Explanation:

The computation of the amount of  fixed overhead is deferred to a future period is shown below:

= Unsold units × fixed overhead cost per unit

= 8,000 units × ($576,000 ÷ 48,000 units)

= 8,000 units × $12

= $96,000

The unsold units is

= Produced units - sold units

= 48,000 units - 40,000 units

= 8,000 units

By multiplying the unsold units with the fixed overhead cost per unit  we can get the amount of fixed overhead deferred for a future period and the same is to be considered

Answer:

€67,000

Explanation:

The computation o the cost is shown below:

But before that first we have to determine the exchange rate at which the quantity demanded equal to quantity supplies

As we can see that from the table  $1.5 per euro exchange rate, the quantity demanded equal to quantity supplied

That means € 1 = $ 1.5

So,  

$1 = € 1 ÷ 1.5

So,

Euro exchange rate = €0.67 per dollar

Now

Worth of exchange  is

= $100,000 × € 0.67 per dollar

= €67,000

Answer:

209305

Explanation:

Statement of cash flow

Cash from operating activities

Profit after taxation                                                                           156213

Adjustments :

Depreciation                                                                                       27567

Cash flow from operating activities before working capital changes  183780

Working Capital changes :

Change in trade receivables                                                                  9189

Change in inventories                                                                           4084

Change in prepaid expenses                                                                (5105)

Change in trade payables                                                                      7147

Change in accrued expenses                                                                10210  

Cash generated from operations                                                      209305

Answer:

$48.50

Explanation:

Harlow Corporation

First step is to calculate for Variable cost per unit:

Variable cost per unit =

$270,000 ÷ 20,000 units

= $13.50 per unit

Second step is to calculate for the cost function

Cost function :

Y = $630,000 + $13.50X

Y= $630,000 + $13.50(18,000)

Y=$630,000+$243,000

Y = $873,000

Therefore:

Total cost / number of units = total cost per unit$

Total cost =$873,000

Number of units= 18,000

$873,000 ÷ 18,000

= $48.50

Therefore the total cost per unit is $48.50

Answer: It is often assumed that manufacturing workers in developing countries, as recipients of outsourced jobs, would achieve economic benefits and organizational power. The author argues that job growth in developing countries through outsourcing to competing firms has often actually resulted in declining unionization and lower wage rates relative to traditional, integrated manufacturing firms. Using time-series data on union membership from 1980-2003 for Honduras and El Salvador as well as 2004 Household Survey Data for El Salvador, he examines the determinants of unionization rates and wages in the manufacturing sectors. He finds that that competitive outsourcing hurts labor at the plant-level in three ways: 1) it reduces labor's strike leverage by geographically dispersing the production process; 2) it increases the threat of plant mobility by decreasing plant-level investments; and 3) it increases labor costs relative to total costs, which creates an incentive for employers to keep wages low and unions out.

Answer:

Purchases= $252,000

Explanation:

Giving the following information:

Sales= $400,000

Cost of goods sold equal to 65 percent of sales.

Beginning inventory= $80,000

Ending inventory= $72,000

To calculate the purchase required, we need to use the following formula:

Purchases= sales + desired ending inventory - beginning inventory

Purchases= (400,000*0.65) + 72,000 - 80,000

Purchases= $252,000

Answer:

b $20,000

Explanation:

For computation of cost advantage first we need to find out the total cost of  Atlanta and Phoenix which is shown below:-

Total cost = Fixed cost + (Variable cost × Number of units)

For Atlanta

The Total cost = $80,000 + ($20 × 20,000)

= $480,000

For Phoenix

The ​​​​​​​Total cost = $140,000 + ($16 × 20,000)

= $460,000  

According to the above calculation, Phoenix is best location because it has lower total cost.

So

The Cost advantage at Phoenix = Total cost of Atlanta - Total cost of Phoenix

= $480,000 - $460,000

= $20,000

Answer:

c. Computer Fraud and Abuse Act.

Explanation:

Computer Fraud and Abuse Act (CFAA) is a cyber security bill that was enacted in 1986 and is an amendment of of Comprehensive Crime Control Act of 1984.

The acts forbids a person to access a computer without proper authorisation or an excess of required authority.

Before this time cybercrime was prosecuted as mail and wire fraud. This was often inadequate.

Other provisions the act addresses are distribution of malicious code, denial of service attacks, and trafficking in passwords

Answer:

c. Factory overhead costs incurred were less than costs charged to production.

Explanation:

An overapplied factory overhead represents the excess amount of overhead used during a manufacturing period compared to the actual overhead incurred during the production or manufacturing period.

Simply stated, an overapplied factory overhead is the amount by which the estimated overhead is above the actual overhead incurred by a factor in the course of production.

Hence, an overapplied factory overhead would result if factory overhead costs incurred were less than costs charged to production.

This simply means that, if the factory overhead cost actually incurred in a production period is less than the estimated factory overhead cost applied, this is an overapplied factory overhead. If reverse of the above is the case, then it is referred to as underapplied factory overhead.

Additionally, if the difference between the two overhead cost is negative, then it is an overapplied factory overhead.

Answer:

1)B

2)C

Explanation:

1) Mr. Blaine wants to know when will the results be ready. He is complimenting to let you know that he has good expectations from you.

2) Asking questions in return lets the other person know that you are interested in the conversation.

Answer:

Question 1 answer is B

Question 2 answer is C

Explanation:

1. From the data in the question, we can tell what your superior has in mind.

- The fact that Mr Blaine has been asking when each report will be finished shows that he is concerned ABOUT THE AMOUNT OF TIME it takes you to complete work on a safety report.

- He often compliments you on the results of your past analyses. This means that he is recertifying that your results come out fine and accurate BUT need to start coming out FASTER. He uses the compliments to lift your spirit so you don't feel downcast by the complaints. So you can be sure that as far as the work is concerned, YOU ARE GETTING IT RIGHT but as far as delivery window is concerned, you are delivering SLOWLY.

So the answer is B - he is most concerned about the timeframe you use to go through each report. He wants you to understand that good timing adds to the quality of a result!

2. The three options here are things you can do, to listen more effectively to your superior. The most important though is C.

You need to ask questions in return!

- Ask questions on the clarification of what exactly you are expected to do, in order to produce results that are both accurate and timely.

- Ask Mr. Blaine how he thinks you should go about it.

- Ask questions where you don't understand

- Ask when exactly you are to submit each result

After he replies, put his advice and corrections into practice.

Answer:

                                                      Industry average       Adrian Express

Average collection period                  25 days                     31 days

Average days in inventory                  60 days                    152 days

Current ratio                                             2                             3.91

Debt to equity ratio                               50%                          109%

Explanation:

Average collection period = (average accounts receivable / total net credit sales) x  365 days = {[(1,620,000 + 1,310,000) / 2] / 17,262,000} x 365 days = 30.98 ≈ 31 days

Average days in inventory = 365 days / inventory turnover

inventory turnover = COGS / average inventory = 10,624,000 / [(4,710,000 4,150,000) / 2] =  2.4

Average days in inventory = 365 days / 2.4 = 152 days

Current ratio = current assets / current liabilities = (cash + accounts receivable + inventory) / $1,930,000 = ($1,220,000 + $1,620,000 + $4,710,000) / $1,930,000 = $7,550,000 / $1,930,000 =3.91

Debt to equity ratio = total liabilities / stockholders' equity =  $4,200,000 / $3,860,000 = 1.09 or 109%    

Answer:

$200,000

Explanation:

The value of the ocean is the price difference between the two houses

$2,800,000 - $2,600,000 = $200,000

I hope my answer helps you

Answer: a. 2. in a fractional-reserve banking system, each dollar of reserves can support more than one dollar of deposits, thereby increasing the money supply by more than $1.

3. reserves = deposits.

b. $900.

Multiplier is 10

c. 4. 1/(desired reserve-deposit ratio).

d. 2. increase reserve requirements.

Explanation:

a. In fractional-reserve banking system, $1 of deposits can be used to create more than $1 in money supply as the money is continuously deposited into other bank accounts. This enables the money to keep increasing until it theoretically reaches a certain amount determined by the money Multiplier.

If the money Multiplier is equal to 1 which is a very rare occasion, this means that the amount required in reserves is equal to the deposits. $1 of deposits will yield a $1 in money supply increase.

b. The desired reserve-deposit ratio is 0.1. For every $1, 0.1 goes to reserves.

If bank reserves have increased by $10 then that means that deposits are,

0.1x = 10

x = $100

Deposits not in reserve are,

= 0.9 * 100

= $90

The money Multiplier can be calculated with the formula,

= 1/(desired reserve-deposit ratio)

= 1/0.1

= 10

Increase in money supply is therefore,

= $90 * 10

= $900

c. As earlier mentioned, option D is the general rule for calculating the money Multiplier.

= 1/(desired reserve-deposit ratio)

d. If the Fed increases the reserve requirement, the effect would be a reduction in the money supply because the denominator is now higher.

For instance, reserve requirement of 0.1 vs 0.2.

At 0.1, the money supply would be,

= 1/0.1

= 10

At 0.2, the money supply would be,

= 1/0.2

= 5

The higher the reserve requirement, the lower the Multiplier.

Answer:

Instructions are below.

Explanation:

Giving the following information:

Handy Home sells windows and doors in the ratio of 7:3 (windows:doors).

Window:

Selling price= $111

Unitary variable cost= $68

Door:

Selling price= $261

Unitary variable cost= $180.5

Fixed costs are $515,375.

1) Selling price per composite unit:

Selling price= 0.7*111 + 0.3*261= $156

2) Composite variable cost:

Variable cost per unit= 0.7*68 + 0.3*180.5= 101.75

3) To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 515,375/ ( 156 - 101.75)

Break-even point in units= 9,500 units

4) Units for each product:

Windows= 0.7*9,500= 6,650

Door= 0.3*9,500= 2,850

Answer:

amount of Bad Debt Expense for 2019 = $92,000

Explanation:

A bad debt expense is a uncollectible receivable amount incurred on a credit sale to a customer, who is no longer able to pay the debt, due to bankruptcy or other financial problems. Companies make provision for these kind of credit losses in the allowance for doubtful accounts, and hence records the amount used from the allowance for doubtful accounts as the bad debt expense.

In our example, the allowance for doubtful account for 2019 is $92,000, hence since it was used to settle part of the credit losses, this becomes the bad debt expense.

Answer:

Small changes in price can have big effects on the number of units sold and also on company profit

Explanation:

Small change in price will definitely have an effect on the amount of units sold due to a corresponding change in demand that will follow this change, and also will affect the amount of profit that the company generates. This changes can either be positive or negative to the company. Example is the increase in price of coca-cola might trigger customers into switching to pepsi-cola, resulting in a reduced demanded quantity which means less units are produced. The overall effect of these will leave the company with less profit.