Answer: i think A
Explanation:
All of the following are true about the basic EOQ model except One half the order size equals the average inventory level. The average dollar value of inventory equals unit price multiplied by order quantity. Annual demand divided by EOQ will give the optimal number of orders per year. The reorder point equals daily demand multiplied by the lead time in days, excluding safety stock.
Answer:
Hence, the second statement describing the average inventory is false
Explanation:
The Economic Order Quantity (EOQ) is the order size that minimizes the balance of ordering cost and holding cost. At the EOQ, the carrying cost is equal to the holding cost. It is the order size that optimizes the investment in stock ordering.
The following statements
The number of orders = Annual demand/order size
Re-order level(point) Average daily usage × average lead time
Average inventory = safety stock × (1/2× order size)
The average Dollar value = Unit price × average inventory
Hence, the second statement describing the average inventory is false
The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 5,000 per day. FSF supplies hot dogs to local restaurants at a steady rate of 250 per day. The cost to prepare the equipment for producing hot dogs is $66. Annual holding costs are 45 cents per hot dog. The factory operates 300 days a year. Find
Answer: See explanation
Explanation:
The remainder of the question:
a). The optimal run size
b) The number of runs per year
c) The length (in days) of a run.
From the question,
p = 5000
u = 250 hotdogs per day
D = 250 × 300 = 75000 hotdogs/year
S = $66
H = 45 cents = $0.45
a. The optimal run size
= (✓2DS/✓H)(✓p/✓-✓u)
= (✓2×75000×66/✓0.45)(✓5000/✓4750)
= 4812
b) The number of runs per year
This will be:
= D/Q
= 75000/4812
= 15.59
= 16 runs per year
c) The length (in days) of a run.
This'll be:
= 4812/5000
= 0.96
= 1 day
Stallman Company took a physical inventory on December 31 and determined that goods costing $200,000 were on hand. Not included in the physical count were $25,000 of goods purchased from Pelzer Corporation, FOB, shipping point, and $22,000 of goods sold to Alvarez Company for $30,000, FOB destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end.
What amount should Stallman report as its December 31 inventory?
In its first month of operations, Bethke Company made three purchases of merchandise in the following sequence: (1) 300 units at $6, (2) 400 units at $7, and (3) 200 units at $8. Assuming there are 360 units on hand, compute the cost of the ending inventory under the (a) FIFO method and (b) LIFO method. Bethke uses a periodic inventory system.
A) Cost of the ending inventory LIFO.
B) Cost of the ending inventory.
Answer:
1. $247,00
A. $2,720
B.$2,220
Explanation:
1. Calculation to determine What amount should Stallman report as its December 31 inventory
Using this formula
December 31 Ending inventory = Inventory count as per physical count + Inventory in transit FOB Shipping point + Inventory in transit FOB destination
Let plug in the formula
December 31 Ending inventory= $200,000 + $25,000+ $22,000
December 31 Ending inventory= $247,000
Therefore What amount should Stallman report as its December 31 inventory is $247,000
A) Calculation to determine the Cost of the ending inventory FIFO.
Cost of ending inventory = (200 units * $8) +(360 units- 200 units * $7)
Cost of ending inventory = (200 units * $8) + (160 units * $7)
Cost of ending inventory= $1,600 + $1,120
Cost of ending inventory= $2,720
Therefore The Cost of ending inventory is $2,720
(b) Calculation to determine The cost of ending inventory under the LIFO method
Cost of ending inventory = (300 units * $6) +(360 units -300 units* $ 7)
Cost of ending inventory = (300 units * $6) + (60 units * $ 7)
Cost of ending inventory = $1,800 + $420
Cost of ending inventory = $2,220
Therefore The cost of ending inventory under the LIFO method will be $2,220
How would you change bankruptcy law?
The provisions of Section 706(a) of the Bankruptcy Code permit debtors to convert a Chapter 7 case into a Chapter 13 case. However, the debtor cannot convert if the Chapter 7 case previously was converted from a case filed under a different chapter on request of a creditor, the trustee, or the bankruptcy court.
Black Bear Auto Company incurred $120,000 of indirect advertising costs for its operations. The following 2017 data have been collected for its three departments: New Cars Used Cars Parts and Service Direct advertising costs $30,000 $24,000 $6,000 Newspaper ad space 60% 30% 10% Sales $250,000 $200,000 $50,000 Required: Determine the costs allocated to each department using the following allocation bases: a. Direct advertising costs b. Newspaper ad space c. Sales
Answer:
a. Allocating cost using direct advertising costs
We have:
Cost allocated to New Cars = $60,000
Cost allocated to Used Cars = $48,000
Cost allocated to Parts and Service = $12,000
b. Allocating cost using Newspaper ad space
We have:
Cost allocated to New Cars = $72,000
Cost allocated to Used Cars = $36,000
Cost allocated to Parts and Service = $12,000
c. Allocating cost using Sales
We have:
Cost allocated to New Cars = $60,000
Cost allocated to Used Cars = $48,000
Cost allocated to Parts and Service = $12,000
Explanation:
Given:
New Cars Used Cars Parts and Service
Direct advertising costs $30,000 $24,000 $6,000
Newspaper ad space 60% 30% 10%
Sales $250,000 $200,000 $50,000
The costs allocated to each department can now be calculated as follows:
a. Allocating cost using direct advertising costs
The indirect advertising costs can be allocated using the following formula:
Cost allocated to a department = (Direct advertising costs of the department / Sum of direct advertising costs of the 3 departments) * Indirect advertising costs ................... (1)
Using equation (1), we have:
Cost allocated to New Cars = ($30,000 / ($30,000 + $24,000 +$6,000)) * $120,000 = $60,000
Cost allocated to Used Cars = ($24,000 / ($30,000 + $24,000 +$6,000)) * $120,000 = $48,000
Cost allocated to Parts and Service = ($6,000 / ($30,000 + $24,000 +$6,000)) * $120,000 = $12,000
b. Allocating cost using Newspaper ad space
The indirect advertising costs can be allocated using the following formula:
Cost allocated to a department = Percentage of Newspaper ad space of the department * Indirect advertising costs ................... (2)
Using equation (2), we have:
Cost allocated to New Cars = 60% * $120,000 = $72,000
Cost allocated to Used Cars = 30% * $120,000 = $36,000
Cost allocated to Parts and Service = 10% * $120,000 = $12,000
c. Allocating cost using Sales
The indirect advertising costs can be allocated using the following formula:
Cost allocated to a department = (Sales of the department / Sum of Sales of the 3 departments) * Indirect advertising costs ................... (3)
Using equation (3), we have:
Cost allocated to New Cars = ($250,000 / ($250,000 + $200,000 + $50,000)) * $120,000 = $60,000
Cost allocated to Used Cars = ($200,000 / ($250,000 + $200,000 + $50,000)) * $120,000 * $120,000 = $48,000
Cost allocated to Parts and Service = ($50,000 / ($250,000 + $200,000 + $50,000)) * $120,000 * $120,000 = $12,000
Walmart's channel members negotiate with one another, buy and sell products, and facilitate the change of ownership between Walmart and its suppliers in the course of moving finished goods from the manufacturer into the hands of Walmart's customers. As products move toward the final consumer, which of the following is true of the channel members within Walmart's marketing channel?
a. They help provide contact efficiency as goods move into the hands of the final consumer.
b. They play roles that are different from those of intermediaries and resellers.
c. They provide division of labor but without any particular specialization in moving goods.
d. They facilitate the change of ownership but not the sale to the final consumer.
Explanation:
jsbdjwidhsjdbxbsjayye jdkdhdjdieiehshsisishsususushdhshsusihshshshsjsjdjdhdhdueudjddjjdjsosjshdjdjdjxjxjxhdjdkdkdjjjxjdkdjdjdjdjdjdjdjdhd jdhxhhxhxhhxhdjsksbsdjehxsjsodhdjdoskdjsksjsdjdjjdjdjdjdksjsjsjsjdjdjdjjdjdjdjdndoe mxmsoodhdjdidehbssoiehdoewksnbxnssllzmxjdoshdjxkdhdjsosdjbdjxkdiehejskjdbckowiehwowlzsbeoepwjjdkxbsksoxbckdkdbdkskd xbxnxnjxjdosurhrbcnckzbxsjksjdjdso xixjdjsiwieusjdhehehejeheneowieheiejsbskowhrjeeijdjdjdjdjdjdjdjsjsjsjdnndndndbdbhhhdhjjddhhh
Karl's Keychain Company produces keychains that sell in its stores for $1 each. On January 1, 2015, the company had inventory of 10,000 keychains. During 2015, the company produced 900,000 keychains. At the end of the business year on December 31, 2015, the company's inventory of keychains was 8,000. What was the value of Karl's inventory investment in 2015
Answer:
$2,000
Explanation:
Calculation to determine the value of Karl's inventory investment in 2015
On January 1, 2015, beginning inventory $10,000
Less December 31, 2015, ending inventory $8,000
2016 value of Karl's inventory investment $2,000
Therefore the value of Karl's inventory investment in 2015 will be $2,000
A plant asset was purchased on January 1 for $140000 with an estimated salvage value of $20000 at the end of its useful life. The current year's Depreciation Expense is $10000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $40000. The remaining useful life of the plant asset is
Answer:
useful life= 12 years
Explanation:
Giving the following information:
Purchase price= $140,000
Salvage value= $20,000
Annual depreciation= $10,000
To calculate the useful life, we need to use the straight-line method formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
10,000= (140,00 - 20,000) / useful life
10,000useful life = 120,000
useful life= 120,000 / 10,000
useful life= 12 years
The following information is available for Quality Book Sales's sales on account and accounts receivable:
Accounts Receivable Balance, January 1, Year 2 $78,500
Allowance for Doubtful Accounts, January 1, Year 2 4,710
Sales on Account, Year 2 550,000
Collections of Accounts Receivable, Year 2 556,000
After several collection attempts, Quality Book Sales wrote off $2,850 of accounts that could not be collected. Quality Book Sales estimates that 0.5% of sales on account will be uncollectible. Required:
(A) Compute the following amounts:
(1) Using the allowance method, the amount of uncollectible accounts expense for Year 2.
(2) Net realizable value of receivables at the end of Year 2.
(B) Explain why the uncollectible accounts expense amount is different from the amount that was written off as uncollectible.
(1) Uncollectible accounts expense is an estimate of current receivables that may eventually be uncollectible.
(2) Uncollectible accounts expense is the actual amount that was determined in the current accounting period to be uncollectible.
Answer:
Quality Book Sales
1) Uncollectible accounts expense for Year 2 = $890
2) Net realizable value of receivables at the end of Year 2 = $69,650
B) The reason why the uncollectible accounts expense amount is different from the amount that was written off as uncollectible is:
(2) Uncollectible accounts expense is the actual amount that was determined in the current accounting period to be uncollectible.
Explanation:
a) Data and Calculations:
Accounts Receivable Balance, January 1, Year 2 = $78,500
Allowance for Doubtful Accounts, January 1, Year 2 = 4,710
Sales on Account, Year 2 = 550,000
Collections of Accounts Receivable, Year 2 = 556,000
Uncollectibles written off = $2,850
Allowance for Uncollectible accounts = 0.5% of Sales ($550,000 * 0.5%)
= $2,750
1) Uncollectible accounts expense for Year 2 = $890 ($2,850 + $2,750 - $4,710)
2) Net realizable value of receivables at the end of Year 2 = $69,650
B) The reason why the uncollectible accounts expense amount is different from the amount that was written off as uncollectible is:
(2) Uncollectible accounts expense is the actual amount that was determined in the current accounting period to be uncollectible.
Accounts Receivable Account
Account Titles Debit Credit
Beginning balance $78,500
Sales 550,000
Cash $556,000
Allowance for Uncollectibles 2,850
Ending balance 69,650
Allowance for Uncollectible Accounts
Account Titles Debit Credit
Beginning balance $4,710
Accounts receivable $2,850
Uncollectible Accounts Expense 890
Ending balance 2,750
An investment project provides cash inflows of $1,350 per year for eight years. a. What is the project payback period if the initial cost is $4,250
Answer:
It will take 3 years and 55 days to cover the initial investment.
Explanation:
Giving the following information:
Cash flows= $1,350
Initial investment= $4,250
The payback period is the time required to cover the initial investment:
Year 1= 1,350 - 4,250= -2,900
Year 2= 1,350 - 2,900= -1,550
Year 3= 1,350 - 1,550= -200
Year 4= 1,350 - 200= 1,150
To be more accurate:
(200 / 1,350)= 0.15*365= 55 days
It will take 3 years and 55 days to cover the initial investment.
Bushard Company (buyer) and Schmidt, Inc. (seller) engaged in the following transactions during February 2019:
Bushard Company
DATE TRANSACTIONS
2019
Feb. 10 Purchased merchandise for $5,000 from Schmidt, Inc., Invoice 1980, terms 1/10, n/30.
13 Received Credit Memorandum 230 from Schmidt, Inc., for damaged merchandise totaling $200 that was returned; the goods were purchased on Invoice 1980, dated February 10.
19 Paid amount due to Schmidt, Inc., for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, Check 2010. Schmidt, Inc.
DATE TRANSACTIONS
2019
Feb. 10 Sold merchandise for $5,000 on account to Bushard Company, Invoice 1980, terms 1/10, n/30.
13 Issued Credit Memorandum 230 to Bushard Company for damaged merchandise totaling $200 that was returned; the goods were purchased on Invoice 1980, dated February 10.
19 Received payment from Bushard Company for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, Check 2010.
Required:
Journalize the transactions above in a general journal for both Bushard Company and Schmidt, Inc.
Answer:
Bushard Company (buyer) and Schmidt, Inc. (seller)
Journal Entries:
Bushard Company
Feb. 10 Debit Inventory $5,000
Credit Accounts payable (Schmidt, Inc.) $5,000
To record the purchase of goods on account, via Invoice 1980, terms 1/10, n/30.
13 Debit Accounts payable (Schmidt, Inc.) $200
Credit Inventory $200
To record the return of damaged goods and received Credit Memorandum 230.
19 Debit Accounts payable (Schmidt, Inc.) $4,800
Credit Cash $4,752
Credit Cash Discounts $48
To record the payment on account and discounts.
Schmidt, Inc.
Feb. 10 Debit Accounts receivable (Bushard Company) $5,000
Credit Sales revenue $5,000
To record the sale of goods on account, Invoice 1980, terms 1/10, n/30.
13 Debit Sales returns $200
Credit Accounts receivable (Bushard Company) $200
To record the return of damaged, issuing Credit Memorandum 230.
19 Debit Cash $4,752
Debit Cash Discounts $48
Credit Accounts receivable (Bushard Company) $4,800
To record the receipt of cash from customer, including discounts.
Explanation:
a) Data and Analysis:
Bushard Company
Feb. 10 Inventory $5,000 Accounts payable (Schmidt, Inc.) $5,000, Invoice 1980, terms 1/10, n/30.
13 Accounts payable (Schmidt, Inc.) $200 Inventory $200 Credit Memorandum 230, damaged merchandise.
19 Accounts payable (Schmidt, Inc.) $4,800 Cash $4,752 Cash Discounts $48
Schmidt, Inc.
Feb. 10 Accounts receivable (Bushard Company) $5,000 Sales revenue $5,000, Invoice 1980, terms 1/10, n/30.
13 Sales returns $200 Accounts receivable (Bushard Company) $200 Credit Memorandum 230, damaged merchandise.
19 Cash $4,752 Cash Discounts $48 Accounts receivable (Bushard Company) $4,800
You decide to buy a 60 unit apartment complex in Austin for $15,000,000. You have $6,000,000 to use as a down payment and have applied for a $9,000,000 mortgage loan from Bank of the Ozarks. The loan will have a 25 year term, be fully amortizing, and have fixed interest rate of 6.24% per annum. What is your monthly payment on the loan?
a. $54,731.69
b. $59,314.62
c. $65,731.09
d. $98,857.71
Answer:
Monthly payment= $59,314.62
Explanation:
Giving the following information:
Loan= $9,000,000
Number of periods (n)= 25*12= 300 months
Interest rate= 0.0624/12= 0.0052
To calculate the monthly payment, we need to use the following formula:
Monthly payment= (PV*i) / [1 - (1+i)^(-n)]
Monthly payment= (9,000,000*0.0052) / [1 - (1.0052^-300)]
Monthly payment= $59,314.62
SUV Company is considering producing a line of luxury SUVs. Currently, SUV Company sells 4,200 standard SUVs annually for $45,400 each. They expect that they would sell 5,600 luxury SUVs for $80,500. If SUV Company produces the line of luxury SUVs, then they expect to only sell 3,300 standard SUVs. What is the incremental revenue generated from the potential project
Answer:
SUV Company
The incremental revenue generated from the potential project is:
= $409,940,000.
Explanation:
a) Data and Calculations:
Selling price of Standard SUVs = $45,400
Number of Standard SUVs sold annually = 4,200
Luxury SUVs' price per unit = $80,500
Number of Luxury SUVs expected to be sold = 5,600
Reduced number of Standard SUVs sold as a result = 3,300
Lost sales of Standard SUVs = 900 (4,200 - 3,300)
The incremental revenue generated from the potential project is:
Sale revenue from Luxury SUVs = $450,800,000 ($80,500 * 5,600)
Lost revenue from lost sale of
Standard SUVs = 40,860,000 ($45,400 * 900)
Incremental revenue generated = $409,940,000
b) The incremental revenue is the additional revenue generated from the introduction of the Luxury SUVs, excluding the lost revenue from the non-sale of Standard SUVs as a result of the introduction.
Suppose a firm has 35 million shares of common stock outstanding at a price of $15 per share. The firm also has 200,000 bonds outstanding with a current price of $905.4. The outstanding bonds have yield to maturity 9.4%. The firm's common stock beta is 1.5 and the corporate tax rate is 39%. The expected market return is 14% and the T-bill rate is 3%. What is the WACC for this firm
Answer:
16%
Explanation:
The computation of the WACC is given below:
But before that following calculation should be done
Cost of equity
= Risk free rate of return + beta × (market return - risk free rate)
= 3% + 1.5 × (14% - 3%)
= 19.5%
Market value of equity = 35 million shares ×$15 = $525 million
And, the market value of debt = 200,000 × $905.4 = $181.08 million
Now the WACC is
= cost of equity × weight of equity + cost of debt × (1 - tax rate) × weight of debt
= 19.5% × ($525 ÷ 525 + 181.08) + 9.4% × (1 - 0.39) × ($181.08 ÷ 525 + 181.08)
= 19.5% ×0.744 + 5.734% × 0.256
= 15.975%
= 16%
Your purpose for writing a formal business letter should be clearly stated in _____.
a postscript following your signature
the first paragraph
the salutation
the conclusion of the letter
Answer:
the answer is C hope this helps
On June 1, 2020, Forde Auto Manufacturer sells a 4-door sedan to a dealer for $6,000, which includes three years of maintenance. The standalone selling price of the vehicle is $6,000 and the standalone selling price of the maintenance contract is $400. In addition, Forde offered a $100 cash incentive (per vehicle purchased) to the dealer if the vehicle was purchased in the first week of June 2020. a. How should the transaction price be allocated among the performance obligation(s) for sales made in the first week of June? b. Prepare Forde’s journal entry to record the sale of vehicles for cash, assuming that dealers purchased 20 vehicles during the first week of June 2020. Ignore the cost of sales entries
Answer:
Part a
Allocation based on Stand Alone Selling Prices :
4 - door Sedan and the 3 years maintenance contract = $6,400Cash incentive = $100Part b
Journal entry :
Debit : Cash $130,000
Credit : Revenue - 4 - door Sedan $128,000
Credit : Revenue - Cash incentive $2,000
Explanation:
It is important to identify the step in IFRS 15 - Revenue from Contracts with Customers, which is affected by the question.
Here, Step 2 - Identify the performance obligation in the contract, Step 3 - Determine the Transaction Price, Step 4 - Allocate the Transaction Price to the Performance obligation and Step 5 - Recognize the Revenue as or when the Performance Obligation is Satisfied. These are explained and applied as follows :
Step 2 - Identify the performance obligation in the contract.
Here, identify the individual promises (Performance Obligations) that the entity has committed to transfer to the customer.
Also the entity identifies each performance obligation that is distinct, or a series of distinct Goods or Services that are substantially the same and have the same pattern of transfer to the customer.
So, the performance obligations are as follows :
4 - door Sedan and the 3 years maintenance contract(these can not be consumed independently from one another)Cash incentive (can be consumed independently from the rest of the performance obligations)Step 3 - Determine the Transaction Price
Transaction price is the consideration the entity expects to be entitled to in exchange of goods or services transferred to the customer.
Transaction Price is $6,500 ($6,000 + $400 + $100)
Step 4 - Allocate the Transaction Price to the Performance obligation
Allocation of Transaction Price is done based on Stand Alone Selling Prices.
Stand alone selling prices have already been identified :
4 - door Sedan and the 3 years maintenance contract = $6,400Cash incentive = $100Step 5 - Recognize the Revenue as or when the Performance Obligation is Satisfied
Stand alone for 20 vehicles :
4 - door Sedan and the 3 years maintenance contract = $6,400 x 20 = $128,000Cash incentive = $100 x 20 = $2,000Journal entry :
Debit : Cash $130,000
Credit : Revenue - 4 - door Sedan $128,000
Credit : Revenue - Cash incentive $2,000
Q 10.1: Sukui Electronics decided to expand their product line to include GPS trackers. They estimate that over the next 3 years this project will increase their net income by $1.7 million. To do this, they decided not to add a product line of deep sea diving watches. They estimate that over the next 3 years this project would have increased their net income by $800,000. This is an example of
Answer: opportunity cost of capital
Explanation:
The example in the question above is an opportunity cost of capital. Opportunity cost of capital simply refers to the potential loss that an individual makes because of making a choice at the expense of another one.
Here, the opportunity cost of capital is the $800000 that could have been made if they decided to add a product line of deep sea diving watches.
Which statement concerning the kinked demand curve model of oligopoly is false? The portion of the demand curve above the "kink" is more elastic than the portion below. The firm's marginal costs can sometimes shift without changing the profit-maximizing price and output. It assumes when one oligopolist raises the price, all others will follow. It addresses the question of price "stickiness."
Answer: It assumes when one oligopolist raises the price, all others will follow
Explanation:
An oligopoly is a form of market where there are dominated by few group of large sellers.
A kinked demand curve simply happens when the elasticity is not thesame for the lower and higher prices and the demand curve isn't a straight line.
It simply suggests that there are rigid prices and assumes when one oligopolist raises the price, all others will follow.
This year Randy paid $28,900 of interest on his residence. (Randy borrowed $462,000 to buy his residence, and it is currently worth $512,000.) Randy also paid $2,800 of interest on his car loan and $4,650 of margin interest to his stockbroker (investment interest expense). How much of this interest expense can Randy deduct as an itemized deduction under the following circumstances
Answer:
a. Interest Deductible = $31,100
b. Interest Deductible = $28,900
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
This year Randy paid $28,900 of interest on his residence. (Randy borrowed $462,000 to buy his residence, and it is currently worth $512,000.) Randy also paid $2,800 of interest on his car loan and $4,650 of margin interest to his stockbroker (investment interest expense). How much of this interest expense can Randy deduct as an itemized deduction under the following circumstances?
a. Randy received $2,200 of interest this year and no other investment income or expenses. His AGI is $75,000.
Interest Deductible $.......
b. Randy had no investment income this year, and his AGI is $75,000.
Interest Deducttible $.......
The explanation of the anwer is now given as follows:
a. Randy received $2,200 of interest this year and no other investment income or expenses. His AGI is $75,000.
Randy may choose to deduct the interest of $28,900 on his residence as an itemized deduction.
The $2,800 of interest on his car loan is a nondeductible personal interest.
The $2,200 interest income received can be regarded as an investment income.
The $4,500 margin interest to his stockbroke is likely investment interest. But since Randy has only $2,200 interest income, his deduction is limited to the $2,200.
Therefore, we have:
Interest Deductible = Interest on his residence + $2,200 = $28,900 + $2,200 = $31,100
b. Randy had no investment income this year, and his AGI is $75,000.
Since there is no investment income, Randy can only dedcut the interest of $28,900 on his residence based on the explanation in part a above.
Therefore, we have:
Interest Deductible = $28,900
Cisco Systems Inc. reported the following in its income statement for the year ended July 30, 2016: Basic earnings per share of $2.13 and diluted earnings per share of $2.11. There were 5,053 million weighted average basic shares were outstanding during the year. What approximate net income, did the company report for 2016
Answer:
$10,762,890
Explanation:
Earnings per Share = Net Income attributable to Common Stock holders ÷ Weighted Average Number of Common Stocks
Now, since we have basic earnings per share we an use that to find net income. Net Income is Profit after tax and interest and only available in basic earnings per share calculation.
Net Income attributable to Common Stock holders = Earnings per Share x weighted average basic shares = ($2.13 x 5,053,000) = $10,762,890
Are monopolistically competitive firms efficient in long-run equilibrium? Monopolistically competitive firms A. are productively efficient because they produce at minimum average total cost and they are not allocatively efficient because they produce where price is equal to marginal revenue. B. are not productively efficient because they do not produce at minimum marginal cost and they are allocatively efficient because they produce where price is equal to marginal revenue. C. are not productively efficient because they do not produce at minimum marginal cost and they are allocatively efficient because they produce where marginal cost equals marginal revenue. D. are not productively efficient because they do not produce at minimum average total cost and they are not allocatively efficient because they produce where price is greater than marginal cost. E. are not productively efficient because they do not produce at minimum average total cost and they are not allocatively efficient because they produce where price is less than marginal cost.
Answer:
E)are not productively efficient because they do not produce at minimum average total cost and they are not allocatively efficient because they produce where price is greater than marginal cost.
Explanation:
Monopolistic competition can be regarded as imperfect competition whereby many producers that are competing against each other exist in the market, though they are selling products which can be differentiated from one another. Monopolistically competitive firms do
maximize their profit if their production is at a level where marginal costs as well as its marginal revenues equals. Hence, monopolistically competitive firms are not productively efficient because they do not produce at minimum average total cost and they are not allocatively efficient because they produce where price is greater than marginal cost.
The failure rate for each component of a 2-component series system is assumed to be one failure per 1,000 hours of operation, and the switch reliability of replacing a failed component with a spare one is 1.0. Given that there is a spare component, a. Calculate the reliability of the system for a period of 1,000 hours assuming no other failure is possible. b. Determine the approximate MTBF of the system. c. What is the system MTBF without the spare component
Answer:
a. The reliability of the system for a period of 1,000 hours, assuming no other failure is possible is:
= 99.9%.
b. The approximate MTBF (Mean Time Between Failures) without the spare component is:
1,000 hours.
Explanation:
a) Data and Calculations;
Failure rate of each component of a 2-component series system = 1/1,000 = 0.001
Therefore, the reliability rate = 1 - 0.001 = 0.999 = 99.9%
The switch reliability of replacing a failed component with a spare one = 1.0
The system's reliability = Mean Time Between Failure (MTBF) minus the Mean Time to Repair (MTTR)
= 1,000 - 1.0 = 999 hours out of 1,000
b)The equipment's Mean time between failures (MTBF) is the average time it takes the equipment or system to suffer a breakdown. Engineers, vendors, and system analysts use the MTBF metric to measure an equipment's performance, safety, and design reliability.
Sunland Company is considering these two alternatives for financing the purchase of a fleet of airplanes. 1. Issue 60,000 shares of common stock at $42 per share. (Cash dividends have not been paid nor is the payment of any contemplated.) 2. Issue 12%, 10-year bonds at face value for $2,520,000. It is estimated that the company will earn $819,000 before interest and taxes as a result of this purchase. The company has an estimated tax rate of 30% and has 91,100 shares of common stock outstanding prior to the new financing. Determine the effect on net income and earnings per share for issuing stock and issuing bonds. Assume the new shares or new bonds will be outstanding for the entire year. (Round earnings per share to 2 decimal places, e.g. $2.66.) Plan One Issue Stock Plan Two Issue Bonds select an option $enter a dollar amount $enter a dollar amount select an option enter a dollar amount enter a dollar amount select an option enter a total of the two previous amounts enter a total of the two previous amounts select an option enter a dollar amount enter a dollar amount select an option $enter a total of the two previous amounts $enter a total of the two previous amounts select an option enter a number enter a number select an option $enter a dollar amount rounded to 2 decimal places $enter a dollar amount rounded to 2 decimal places
Answer:
Issuing Stock Issuing Bonds
Net income $573,300 $361,620
Earnings per share $3.79 $3.97
Explanation:
Calculation to determine the effect on net income and earnings per share for issuing stock and issuing bonds.
ISSUING STOCK ISSUING BONDS
Income before interest and taxes
$819,000 $819,000
Interest ($2,520,000 x 12%) $0 $302,400
Income before taxes $819,000 $516,600
($819,000-$302,400=$516,600)
Income tax expense (30%) $245,700 $154,980
(30%*$819,000=$245,700)
(30%*$516,600=$154,980)
NET INCOME $573,300 $361,620
($819,000-$245,700=$573,300)
($516,600-$154,980=$361,620)
Outstanding shares 151,100 91,100
(60,000shares+91,100 shares=151,100)
Earnings per share $3.79 $3.97
($573,300/151,100=$3.79)
($361,620/91,100=$3.97)
Therefore the effect on net income and earnings per share for issuing stock and issuing bonds are :
Issuing Stock Issuing Bonds
Net income $573,300 $361,620
Earnings per share $3.79 $3.97
If a French bank opens a new branch office in California, where does this transaction appear in the balance of payments accounts
Answer:
Either U.S or france
Which best explains why banks consider interest on loans to be important?
Answer:
what are the options as answers?
Explanation:
1. Evaluate the situation that Mason and Shepherd find themselves in with respect to their existing employers. What are the legal and ethical issues raised
Answer:
The answer is provided in two separate headings for Mason and Shepherd with regard to the issues faced by them and how to handle them.
Explanation:
Mason
Mason's goal is start a venture by utilising the information received from the company she has worked for. This could lead to the violation of the agreement with her employer with regard to Non-competition, Non-disclosure and Development provisions.
So to tackle this situation she needs to first of all prove that the business is not a competitor of ATS. Moreover, she must refrain from coming into contact of the current customers of ATS. Finally, data kept in her office computer on the details of the new venture is currently under the ownership of ATS. Therefore, she should removed that data. Other than that she could negotiate with ATS with the help of a legal consultant.
Shepherd
Shepherd has signed an agreement with NOVA, where he is being bound to disclose all the inventions he has worked on so far. This problem is more likely on the intellectual property law.
To resolve this issue he could own his inventions by way of patent the translate engines as early as possible. While the process may take some years, it will be protected from NOVA as it would in pending status.
8. A relatively small grocery store chain operates 35 stores in three New England states. Recently, the organization has been facing intensified competition from resource-rich dominant players like Kroger and Walmart, new players with innovative services like Amazon, and new low-cost leaders like Aldi. This small chain is seeing declining sales because it cannot offer consumers the same or better products, services, or prices as any of these competitors. Which type of interorganizational relationship does this describe
Answer:
- Population ecology.
Explanation:
'Population ecology' is characterized as the kind of inter-organizational association in which asserts that the dynamic changes takes places in the level of population as an outcome of the selection of their organization and its failure to replace with the evolution/change in the environment. As per Hannan & Freeman's theory of organizational ecology, an organization(like the grocery store in the given situation) faces decline in sales due to their selection of the orgnaization as the structural inertia of the orgnaization does not allow it to adapt the environmental changes and the changes in demands of the population.
Explain the significance of capital structure.
The fractional reserve system of banking started when goldsmiths began: Select one: a. Accepting deposits of gold for safe storage b. Charging people who deposited their gold c. Using deposited gold to produce products for sale to others d. Issuing paper receipts in excess of the amount of gold held
Answer:
d. Issuing paper receipts in excess of the amount of gold held.
Explanation:
Fractional-reserve banking is practiced by all commercial banks. Such banks involve banks that accept deposits from various customers and make loans to other borrowers while keeping an amount in reserve that is equal to a part of the deposit liabilities of the bank.
The fractional reserve system of banking started when goldsmiths began issuing paper receipts in excess of the amount of gold held.
Option d. is correct.
Suppose that Nevada Co., a US-based MNC, makes regular, monthly purchases of materials from a German supplier named Spicurity. These regular payments are typically in the amount of 300,000 euros. Last month the exchange rate was $1.93 per euro. Nevada Co. only has cash reserves in dollars, while Spicurity only has cash reserves in euros. Suppose both companies use the same bank.
In order to conduct this transaction last month, Nevada Co.
Required:
a. $_____ to pay for the materials. Thus, the bank handling the transaction reduced Nevada’s account by this amount, denominated in
b. __________( euros OR dollars). The bank then converted this amount to c. ___________ d. ________________( euros OR dollars). and credited it to Spicurity’s account.
Answer:
In order to conduct this transaction last month, Nevada Co.
Required:
a. $_579,000____ to pay for the materials. Thus, the bank handling the transaction reduced Nevada’s account by this amount, denominated in
b. __dollars___( euros OR dollars). The bank then converted this amount to c. ___euros________ from d. ______dollars_____( euros OR dollars). and credited it to Spicurity’s account.
Explanation:
a) Data and Calculations:
Importer = Nevada Co., a US-based MNC
Exporter = Spicurity, a German supplier
Amount of regular payments = 300,000 euros
Exchange rate = $1.93 per euro
Amount in dollars = $579,000 (300,000 euros * $1.93)
b) To convert to dollars from euro, when the exchange rate is $1.93 per euro, we multiply the euro-based amount by the exchange rate. To convert the dollars to the euro, we divide by the exchange rate. To multiply or divide depends on which currency has a higher value (e.g. euro vs dollars).