The standard deviation of the market-index portfolio is 20%. Stock A has a beta of 2.00 and a residual standard deviation of 30%. a. Calculate the total variance for an increase of 0.10 in its beta. (Do not round intermediate calculations. Round your answer to the nearest whole number.) b. Calculate the total variance for an increase of 2.62% in its residual standard deviation. (Do not round intermediate calculations. Round your answer to the nearest whole number.)
Answers
Answer: Check attachment
Explanation:
a. Calculate the total variance for an increase of 0.10 in its beta.
The answer here is 0.2700
b. Calculate the total variance for an increase of 2.62% in its residual standard deviation.
The answer is 0.2664
Check the attachment for more explanation
Related Questions
ere are simplified financial statements for Watervan Corporation:
INCOME STATEMENT
(Figures in $ millions)
Net sales $
888.00
Cost of goods sold
748.00
Depreciation
38.00
Earnings before interest and taxes (EBIT) $
102.00
Interest expense
19.00
Income before tax $
83.00
Taxes
17.43
Net income $
65.57
BALANCE SHEET
(Figures in $ millions)
End of Year Start of Year
Assets
Current assets $
376
$
326
Long-term assets
272
229
Total assets $
648
$
555
Liabilities and shareholders’ equity
Current liabilities $
201
$
164
Long-term debt
115
128
Shareholders’ equity
332
263
Total liabilities and shareholders’ equity $
648
$
555
The company’s cost of capital is 8.5%.
a. Calculate Watervan’s economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
b. What is the company’s return on capital? (Use start-of-year rather than average capital.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
c. What is its return on equity? (Use start-of-year rather than average equity.) (Enter your answer as a percent rounded to 2 decimal places.)
d. Is the company creating value for its shareholders?
Answers
Answer:
c
Explanation:
Nash Company reported 2020 net income of $152,900. During 2020, accounts receivable increased by $17,160 and accounts payable increased by $9,582. Depreciation expense was $48,000. Prepare the cash flows from operating activities section of the statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) NASH COMPANY Cash Flow Statement choose the accounting period select an opening section name select an item $enter a dollar amount Adjustments to reconcile net income to select a subsection name select an item $enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount enter a subtotal of the adjustments select a closing section name $enter a total amount for the section
Answers
Answer:
$112,478
Explanation:
Cash flows from operating activities
Net income $152,900
Adjustments to reconcile net income
Depreciation expense $48,000
Increase in accounts payable $9,582
Increase in accounts receivable $ (17,160) $40,422
Net cash provided by operating activities $112,478
Delphi Company uses job-order costing. It applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, Delphi estimated that it would work 37,000 machine-hours and incur $222,000 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were issued for use in production, $367,000 ($345,000 direct and $22,000 indirect). b. Employee costs were incurred: direct labor, $309,000; indirect labor, $44,000; and administrative salaries, $155,000. c. Factory depreciation, $175,000. d. Selling costs, $140,000. e. Manufacture overhead was applied to jobs. The actual machine hours for the year were 35,000 hours. a. Compute the total manufacturing overhead cost applied to jobs during the year.
Answers
Answer:
Allocated MOH= $210,000
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 222,000/37,000
Predetermined manufacturing overhead rate= $6 per machine hour
Now, we cal allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 6*35,000
Allocated MOH= $210,000
Some organizations take collaboration so seriously that they are changing the traditional office layout and replacing cubicles with low walls or no walls between desks. Many are creating small, informal areas designed to encourage spontaneous discussion and problem-solving. This is an example of which concept
Answers
Question options:
a. Cooperative phalanxes
b. Collaborative groups
c. Cooperative posses
d. Collaborative teams
Answer:
d. Collaborative teams
Explanation:
The above is examplary of Collaborative teams. Collaborative teams are groups of individuals in the workplace that share a common goal and then work together and share ideas, knowledge and skills to accomplish these goals. Companies are increasingly encouraging collaborative teams by creating an atmosphere whereby their employees are able to communicate easily to share ideas and work fast and spontaneously towards working out solutions. Apart from physical barriers that might inhibit smooth communication for collaborative teams in the office, companies have also started increasingly investing into virtual teams whereby an employee is able to communicate, share ideas and work together in a collaborative fashion with a colleague in another location.
Q 20.27: Liberty Bicycles currently sells unassembled bikes for $240 each. The variable production costs for each bike are $35 and the fixed production costs are $72. Liberty is thinking about selling the bikes fully assembled for $300 each. The variable costs for assembling one bike will be $18 and the fixed costs will be $31. Given these figures, Liberty will increase its net income per unit by ________ if it opts to assemble the bikes.
Answers
Answer:
$11
Explanation:
Find the incremental effect on net income of assembling the bikes as follows :
Incremental analysis for assembling the bikes per unit
Sales ( $300 - $240) $60
Less incremental costs :
Variable costs ($18)
Fixed production costs ($31)
Incremental Income/(loss) $11
Conclusion
Thus Liberty will increase its net income per unit by $11 if it opts to assemble the bikes.
Identify the effect that omitting each of the following items would have on the balance sheet
All Interest earned on a note receivable was not recorded.
Assets and stockholders' equity overstated
Depreciation on equipment was not recorded.
Assets understated and stockholders' equity overstated No adjustment was made for supplies used up during the month
Assets overstated and stockholders' equity
An attorney has earned 1/2 of a retainer fee that was received and recorded last month.
No adjustment was recorded for the amount earned.
Assets and stockholders' equity understated
Property taxes are paid annually.
The estimated monthly amount for the taxes was not recorded.
Liabilities and stockholders equity understated
Supplies used up during the month.
Stockholders' equity understated
An attorney has earned 1/2 of a retainer fee that was received and recorded last month.
No adjustment was recorded for the amount earned
Assets and stockholders' equity understated
Property taxes are paid annually.
The estimated monthly amount for the taxes was not recorded.
Liabilities and stockholders equity understated Wages are paid every Friday for the 5-day work week.
The month ended on Monday and no adjustment was recorded.
Liabilities and stockholders' equity overstated
Liabilities overstated and Services provided to customers on the last day of the month were not billed stockholders' equity understated
A tenant paid 6 months' rent in advance when he moved ir on the first day of the month.
No entry was made on the last day of the month
Liabilities understated and stockholders' equity overstated
Answers
Answer:
All Interest earned on a note receivable was not recorded.
Effect: Assets and stockholders' equity overstated
Explanation: An omitting of interest earned on a note receivable will result to an understatement of assets and stockholders’ equity
Depreciation on equipment was not recorded.
Effect: Assets understated and stockholders' equity overstated
Explanation: An omitting of depreciation on equipment will result to an overstatement of assets and stockholders’ equity
No adjustment was made for supplies used up during the month
Effect: Assets overstated and stockholders' equity
Explanation: An omitting of supplies adjustment will result to an overstatement of assets and stockholders’ equity
An attorney has earned 1/2 of a retainer fee that was received and recorded last month. No adjustment was recorded for the amount earned.
Effect: Assets and stockholders' equity understated
Explanation: An omitting of retainer fee adjustment will result to an overstated liabilities and understated stockholders’ equity
Property taxes are paid annually. The estimated monthly amount for the taxes was not recorded.
Effect: Liabilities and stockholders equity understated
Explanation: An omitting of property tax adjustment entry will result to an understated liabilities and overstated stockholders’ equity
Wages are paid every Friday for the 5-day work week. The month ended on Monday and no adjustment was recorded.
Effect: Liabilities and stockholders' equity overstated
Explanation: An omitting of outstanding wages adjustment entry will result to an understated liabilities and overstated stockholders’ equity.
Services provided to customers on the last day of the month were not billed
Effect: Asset and stockholders' equity understated
Explanation: An omitting for bill of services provided to customers on the last day of the month will result to an understatement of assets and stockholders’ equity
A tenant paid 6 months' rent in advance when he moved in on the first day of the month. No entry was made on the last day of the month
Effect: Liabilities understated and stockholders' equity overstated
Explanation: An omitting of prepaid rent adjustment entry will result to an overstated liabilities and understated stockholders’ equity
The Josey Company uses the weighted average method. The beginning work in process consists of 6,000 units (100% completed as to materials and 50% complete as to conversion costs). The number of units completed was 130,000. The ending work in process consists of 10,000 units (100% complete as to materials and 20% complete as to conversion costs). What are the equivalent units of production for conversion costs
Answers
Answer:
Total equivalent units= 135,000 units
Explanation:
The weighted average method blends the costs and units of the previous period with the costs and units of the current period.
Conversion costs:
Units completed and transferred out= 133,000 units
Ending WIP= 10,000*0.2= 2,000 units
Total equivalent units= 135,000 units
At the beginning of the year, Bryers Incorporated reports inventory of $6,100. During the year, the company purchases additional inventory for $21,100. At the end of the year, the cost of inventory remaining is $8,100. Calculate cost of goods sold for the year.
Answers
Answer:
$19,100
Explanation:
The cost of goods sold refers to the actual cost, expended in the manufacturing of goods or products that is produced and then sold in a given period. It comprises all direct costs expended in the manufacturing of goods.
With regards to the above, the cost of goods sold for the year is computed as;
= $6,100 beginning inventory + $21,100 purchases for the period - $8,100 closing inventory
= $19,100
Therefore, the cost of goods sold for the year is $19,100
Direct Labor Cost Budget Pasadena Candle Inc. budgeted production of 33,000 candles for January. Each candle requires molding. Assume that two minutes are required to mold each candle. If molding labor costs $9.75 per hour, determine the direct labor cost budget for January. Round total direct labor cost to the nearest dollar, if required. Pasadena Candle Inc. Direct Labor Cost Budget For the Month Ending January 31 Hours required for assembly: Candles min. Convert minutes to hours ÷ min. Molding hours hrs. Hourly rate × $ Total direct labor cost $
Answers
Answer:
Total direct labor cost = $16,087.50
Explanation:
Production = 33,000 candles
Minute per candle = 3 minutes
Total minute to produce 33,000 Candle = 33,000 candles * 3 minutes = 99,000 Minutes
Total hours for production = 99,000 / 60 minutes = 1,650 hours
Hence, molding hours = 1,650 hours
Total direct labor cost = Molding hours * Molding labor costs per hour
Total direct labor cost = 1,650 hours * $9.75
Total direct labor cost = $16,087.50
In 2020, Elbert Corporation had net cash provided by operating activities of $531,000, net cash used by investing activities of $963,000, and net cash provided by financing activities of $585,000. At January 1, 2020, the cash balance was $333,000. Compute December 31, 2020, cash.
Answers
Answer:
$486,000
Explanation:
Elbert Corporation
Cashflow Statement for the year ended December 31, 2020.
Cash flow from Operating Activities
Net cash provided by operating activities $531,000
Cash flow from Investing Activities
Net cash used by investing activities ($963,000)
Cash flow from Financing Activities
Net cash provided by financing activities $585,000
Movement during the year $153,000
Beginning Cash and Cash Equivalent $333,000
Ending Cash and Cash Equivalent $486,000
Therefore, December 31, 2020, cash balance is $486,000
If a firm averages $2,000 in daily credit sales and offers 60-day terms, the average accounts receivable balance will be $120,000.
a. True
b. False
Answers
Answer:
a. True
Explanation:
The computation of the average accounts receivable balance is shown below:
= Daily credit sales × day terms
= $2,000 × 60 days terms
= $120,000
We simply multiplied the average amount with the day term so that the average account receivable balance could come
Hence, the given statement is true
Therefore the correct option is a.
Were you surprised to learn how much companies focus on the teen market? Explain.
Answers
Answer:
Yes, a large percentage of consumers are influenced by people who are present on the internet, who are mostly younger people. In order to generate income, advertisements for young people are becoming less and less advertising look like.
For this reason, advertising pieces should always aim to entertain and inform, only to later sell. The experience with advertising content should be positive.
The teen audience may have many different tastes, but there is a high probability that everyone will use a cell phone. The device is part of the daily lives of young people and it is through it that teenagers communicate, consume content, and even shop.
Amortization Expense For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: A patent with a 10-year remaining legal life was purchased for $350,000. The patent will be commercially exploitable for another eight years. A patent was acquired on a device designed by a production worker. Although the cost of the patent to date consisted of $52,300 in legal fees for handling the patent application, the patent should be commercially valuable during its entire remaining legal life of 10 years and is currently worth $400,000. A franchise granting exclusive distribution rights for a new solar water heater within a three-state area for five years was obtained at a cost of $70,000. Satisfactory sales performance over the five years permits renewal of the franchise for another three years (at an additional cost determined at renewal). General Journal Ref. Description Debit Credit a. Answer Amortization Expense - Patents Answer 43,750 Answer Answer Patents Answer Answer 43,750 To record patent amortization. b. Answer Amortization Expense - Patents Answer 5,230 Answer Answer Patents Answer Answer 5,230 To record patent amortization. c. Answer Amortization Expense - Patents Answer 14,000 Answer Answer Patents Answer Answer 14,000 To record franchise amortization.
Answers
Answer:
A. Dr Amortization expense $43,750
Cr Patents $43,750
B. Dr Amortization expense $5,230
Cr Patents $5,230
C. Dr Amortization expense $14,000
Cr Franchises $14,000
Explanation:
Preparation of Journal entries
A. Dr Amortization expense $43,750
($350,000÷8 years = $43,750)
Cr Patents $43,750
(To record paten Amortization expense)
B. Dr Amortization expense $5,230
($52,300÷10 years = $5,230)
Cr Patents $5,230
(To record patent Amortization expense)
C. Dr Amortization expense $14,000
($70,000÷5 years = $14,000)
Cr Franchises $14,000
(To record Franchises Amortization expense)
The journal entries for each transaction is given below.
Journal entries;A)
Amortization expense $43750 ( $350000/8 )
Patent $43750
Here expense is debited as it increased the expense and credited the patent as it decreased the assets.
B)
Amortization expense $5230 ( $52300/10 )
Patents $5230
Here only the original cost of patent should be amortized
Here expense is debited as it increased the expense and credited the patent as it decreased the assets.
C)
Amortization expense $14000 ( $70000/5)
Franchise $14000
Here expense is debited as it increased the expense and credited the franchise as it decreased the assets.
Learn more about journal entry here: https://brainly.com/question/24519299
Monitor Muffler sells franchise arrangements throughout the United States and Canada. Under a franchise agreement, Monitor receives $760,000 in exchange for satisfying the following separate performance obligations: (1) franchisees have a five-year right to operate as a Monitor Muffler retail establishment in an exclusive sales territory, (2) franchisees receive initial training and certification as a Monitor Mechanic, and (3) franchisees receive a Monitor Muffler building and necessary equipment. The stand-alone selling price of the initial training and certification is $18,200, and $578,000 for the building and equipment. Monitor estimates the stand-alone selling price of the five-year right to operate as a Monitor Muffler establishment using the residual approach.
Monitor received $89,000 on July 1, 2016, from Perkins and accepted a note receivable for the rest of the franchise price. Monitor will construct and equip Perkin's building and train and certify Perkins by September 1, and Perkin's five-year right to operate as a Monitor Muffler establishment will commence on September 1 as well.
Required:
1. What amount would Monitor calculate as the stand-alone selling price of the five-year right to operate as a Monitor Muffler retail establishment?
2. What journal entry would Monitor record on July 1, 2016, to reflect the sale of a franchise to Dan Perkins?
3. How much revenue would Monitor recognize in the year ended December 31, 2016, with respect to its franchise arrangement with Perkins? (Ignore any interest on the note receivable.)
Total revenue
Answers
Answer:
1. $163,800
2. Dr Cash $ 89,000
Dr Notes receivable $ 671,000
Cr Deferred revenue $ 760,000
3. $ 607,120
Explanation:
1. Computation of the amount that Monitor would calculate as the stand-alone selling price
Total amount of franchise agreement $760,000
Less: stand-alone selling price of training $ (18,200)
Less: stand-alone selling price of building and equip $ (578,000)
Stand-alone selling price of five-year right $163,800
2. Preparation of journal entry that Monitor would record on July 1, 2016,
Dr Cash $ 89,000
Dr Notes receivable $ 671,000
(760,000-89,000)
Cr Deferred revenue $ 760,000
3. Calculation for the amount of revenue that Monitor would recognize in the year ended December 31, 2016,
Revenue to be recognised on:
1st Sep 2021:
Training $ 18,200
Building and Equipment sale $ 578,000
31st Dec 2021:
$163,800/60 Months*4 Months $ 10,920
Total Revenue to be recognized $ 607,120
Note that five-year will give us 60 months (5*12months and September to December will give us 4 months
When the stock price follows a random walk the price today is said to be equal to the prior period price plus the expected return for the period with any remaining difference to the actual return due to:_________
a. A predictable amount based on the past prices.
b. A component based on new information unrelated to past prices.
c. The security's risk.
d. The risk free rate.
e. None of the above.
Answers
Answer:
e. None of the above.
Explanation:
When the stock price follows a random walk the price today is said to be equal to the prior period price plus the expected return for the period with any remaining difference to the actual return due due to new information related to the stock". This is because any new information on stock which is unrelated to stock prices will lead to an increase/decrease in the stock price over a period of time.
is the present value of these cash flows? (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Present value Investment X $ Investment Y $ (b) Which of these cash flow streams has the higher present value at 5 percent? (Click to select) Requirement 2: (a) If the discount rate is 23 percent, what is the present value of these cash flows? (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Present value Investment X $ Investment Y $ (b) Which of these cash flow streams has the higher present value at 23 percent?
Answers
Answer and Explanation:
1A. For investment X, given 6% discount rate, 6700 PMT, N= 9 years
Present value of investment X= 6700* PVIF using 6%, 9 years
= $45751.34
For investment Y, given 6% discount rate, 9200 PMT, N= 5 years
Present value of investment Y =9200*PVIF using 6%, 9 years
=$38753.75
1B. Investment X from the above has higher present value
2A. For investment X, given 22% discount rate, 6700 PMT, N = 9 years
Present value of investment X
=6700*PVIF using 22% ,9 years
= $25368.11
For investment Y, given 22% discount rate, 9200 PMT, N = 5 years
Present value of investment X
=9200*PVIF using 22% ,N = 5 years
= $26345.49
2B. Investment Y from the above has higher present value.
When determining the value of a firm, which of the following statements is true? Investors are risk averse. Other things being equal, they prefer to pay more for stocks that are less risky and that have relatively more certain cash flows than other stocks. Investors love risk. Other things being equal, they prefer to pay more for stocks that are riskier and have uncertain cash flows. Investors are risk neutral. Other things being equal, they prefer to pay more for stocks that are less risky and have uncertain cash flows.
Answers
Answer:
Investors are risk averse. Other things being equal, they prefer to pay more for stocks that are less risky and that have relatively more certain cash flows than other stocks
Explanation:
A risk averse investor is an investor that would want lower returns from investments would lower risks
A risk neutral investor in neutral towards risks. They can invest in projects with high or low risks
A risk loving investor in an investor who prefers a person prefers risky return over guaranteed return
Waterway Company sold 10,100 Super-Spreaders on December 31, 2020, at a total price of $1,050,400, with a warranty guarantee that the product was free of any defects. The cost of the spreaders sold is $535,300. The assurance warranties extend for a 2-year period and are estimated to cost $37,000. Waterway also sold extended warranties (service-type warranties) related to 1,800 spreaders for 2 years beyond the 2-year period for $10,800. Given this information, determine the amounts to report for the following at December 31, 2020: sales revenue, warranty expense, unearned warranty revenue, warranty liability, and cash. Amounts Reported in Income Sales revenue $ Warranty Expense Amounts Reported on the Balance Sheet Unearned Service Revenue $ Cash Warranty Liability
Answers
Answer:
Amounts Reported in Income
Particulars Amount
- Sales revenue $1,050,400
- Warranty expenses $37,000
Amounts Reported on the Balance Sheet
Particulars Amount
- Unearned service revenue $10,800
- Cash ($1,050,400 + $10,800) $1,061,200
- Warranty Liability $37,000
What benefits do customers receive in return for the sacrifice they make when buying a membership at Planet Fitness?
Answers
Answer:
Customers receive the following benefits in return for the price they pay when they buy membership at Planet Fitness:
a) Fitness training
b) Physical exercise
c) Relaxation and comfort
d) Clean and safe environment and conducive atmosphere
e) the friendly and courteous staff is a bonus
Explanation:
Planet Fitness operates fitness centers and clubs around the world under franchises. Planet Fitness has adequate and clean cardio machines, free weights of up to 80 lbs., curl bars, and other strength training equipment and accessories. The average gym user is offered abundant, 5-star, and world-class Cardio equipment and services.
The Lexington Partnership has a depreciable business asset (personal property) that it originally purchased for $81,800. The asset now has an adjusted basis of $49,080 and a market value of $98,160. The partnership has no other potential hot assets. Ambroz sells his 25% interest in the partnership. a. How much is Lexington's depreciation recapture potential
Answers
Answer:
Question b: How much ordinary income does Ambroz recognize when he sells this partnership interest?
a. Since the market value is more than its original cost, therefore, the completed depreciation can be potentially recaptured
Lexington's depreciation recapture potential = $81,800 - $49,080
Lexington's depreciation recapture potential = $32,720
b. Ambroz recognizes Ordinary income of: $32,720*25% = $8180
Jake owns a company called Boat Builders, LLC and one evening he took several of his employees out after work to a bar. After eating and drinking for several hours Jake invited them back to the Boat Builders premises so he and some of the employees could show off a boat they’d been working on. After arriving at Boat Builders they all continued to drink and two of the employees, Tyler and Mark, got into an argument. When Tyler went to use the bathroom Mark attacked him from behind causing him to lose consciousness and break a tooth. Mark made light of it but gave Jake a menacing look so Jake dropped it and went to check on Tyler. Tyler sat up and asked what happened and Jake told him that Mark had attacked him from behind. About an hour passed by during which time Jake went out to his car and got his phone so he could play music for everyone. After an hour, Tyler and Mark began to argue again and they walked outside into the Boat Builders parking lot where Mark attacked Tyler again. Mark left and was later arrested for aggravated battery. Tyler regained consciousness after 10 minutes and drove home even though he was badly injured.
Does Tyler have a negligence claim against Boat Builders? Why or why not? A complete answer will be at least 5 sentences and mention critical facts.
Answers
Answer:
Yes, because Boat Builders, LLC failed to exercise a reasonable standard of care at their premises.
Explanation:
Remember, we are told, "Jake... invited them back to the Boat Builders premises," meaning they (Boat Bilders, LLC) had a duty of care responsibility toward all of his employees present.
Note we are told, "Mark made light of it but gave Jake a menacing look so Jake dropped it," this was a moment that shows Jake's negligence because as the owner of Boat Builders he had a duty of care to ensure no one is hurt without their own fault within their premises (which included their "parking lot").
II. In order to establish a p-chart with 3-sigma control limits, you have collected the following 10 samples of size 300.
Sample Defects Sample Defects
1 25 6 15
2 22 7 14
3 17 8 15
4 42 9 16
5 16 10 16
Required:
a. Determine CL, UCL, and LCL for the p-chart.
b. Is the process in statistical control? Explain.
Answers
Answer and Explanation:
Please find answer and explanation attached
Which of the following statements are true? (Check all that apply.) A. Accounting systems generally consist of several subsystems, each designed to process a particular type of transaction. B. Most mobile devices do not need to be tracked and monitored as their loss represents minimal exposure. C. Supervision is especially important in organizations without responsibility reporting or an adequate segregation of duties. D. All system transactions and activities should be recorded in a log that indicates who accessed what data and when. E. Customer relationship management (CRM) software includes budgets, schedules, and standard costs; reports comparing actual and planned performance; and procedures for investigating and correcting significant variances.
Answers
Answer:
A. Accounting systems generally consist of several subsystems, each designed to process a particular type of transaction.
C. Supervision is especially important in organizations without responsibility reporting or adequate segregation of duties
Explanation:
A. Indeed, because the accounting system consists of several subsystems, such as data systems, the workforce, the procedures and instructions, and software with each designed to process a particular type of transaction.
B. When an organization doesn't assign its staff their specific responsibilities it then becomes especially important to supervise the employees, because failing to do so may result in low worker productivity.
Kent Manufacturing produces a product that sells for $64.00 and has variable costs of $35.00 per unit. Fixed costs are $348,000. Kent can buy a new production machine that will increase fixed costs by $20,500 per year, but will decrease variable costs by $4.50 per unit.
Required:
Compute the contribution margin per unit if the machine is purchased.
Answers
Answer:
The contribution margin per unit is $33.50
Explanation:
The contribution margin per unit in the case when the machine is purchased is shown below:
= Selling price per unit - variable cost per unit
= $64 - ($35 - $4.50)
= $64 - $30.50
= $33.50
hence, the contribution margin per unit is $33.50 and the same is to be considered
We simply applied the above formula
The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 17 percent a year for the next 4 years and then decreasing the growth rate to 6 percent per year. The company just paid its annual dividend in the amount of $2.40 per share. What is the current value of one share of this stock if the required rate of return is 7.90 percent?
Answers
Answer:
$196.91
Explanation:
The computation of the current value is shown below:
D1 = ($2.4 × 1.17) = 2.808
D2 = ($2.808 × 1.17) = 3.28536
D3 = (3.28536 × 1.17) = 3.8438712
D4 = (3.8438712 × 1.17) = 4.4973293
Now
Value after year 4 is
= (D4 × Growth rate) ÷ (Required return - Growth rate)
= (4.4973293 × 1.06) ÷ (0.079 - 0.06)
= 250.903635
Now the current value is
= Future dividend and value × Present value of discounting factor
=$2.808 ÷ 1.079 + 3.28536 ÷ 1.079^2 + 3.8438712 ÷ 1.079^3 + 4.4973293 ÷ 1.079^4 + 250.903635 ÷ 1.079^4
= $196.91
We sell to a customer paying with Visa and the fee is 2%. Part of the transaction would include a debit to:
Answers
Answer:
there are no available options, but the complete journal entry to record a credit card sale is:
Dr Cash account 98% of sale
Dr Credit card fees 2% of sale
Cr Sales revenue 100% of sale
Explanation:
Since VISA payments are automatic, you can debit cash directly. There is no need to debit accounts receivable and then once the payment is confirmed, debit cash. Some credit cards do not pay automatically, and in those cases you should debit accounts receivable.
Instead of credit card fees, some people use credit card discount, or credit card expense, but all these accounts are basically the same. They are all expense accounts.
Creswell Corporation's fixed monthly expenses are $30,000 and its contribution margin ratio is 63%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $92,000?
a. $27,960.b. $62,000.c. $57,960.d. $4,040.
Answers
Answer:
Net income= $27,960
Explanation:
Giving the following information:
Fixed costs= $30,000
contribution margin ratio= 0.63
Sales= $92,000
First, we need to calculate the total contribution margin:
Total contribution margin= 92,000*0.63= 57,960
Now, the net income:
Net income= 57,960 - 30,000
Net income= $27,960
Tyrone wants to spend $15,000 on a new car three years from now. He opens a savings account and deposits $3,250 today. One year from now, he plans to deposit $3,000 in the account, and one year after that, he plans to deposit another $3,000. If the account earns 6% interest per year, how much additional money will Tyrone need to meet his $15,000 goal?
Answers
Answer:
Tyrone will need $4578.4 to meet his $15,000 goal
Explanation:
Tyrone wants to spend amount on a new car three years from now=$15,000
Formula : [tex]A=P(1+\frac{r}{100})^n[/tex]
Where A=future value
P=present value
r=rate of interest
n=time period.
Future value of deposits=[tex]3250 \times(1.06)^3+3000 \times(1.06)^2+3000 \times (1.06)[/tex]
Future value of deposits= 10421.60
So, additional money needed=15000-10421.60=4578.4
Hence Tyrone will need $4578.4 to meet his $15,000 goal
The average price for regular gasoline at U.S. pumps fell almost 4 cents in March to $2.50 a gallon. The price of crude oil dropped to $43.46 per barrel on March 17, the lowest since March 2009.
Answers
Answer: C. lower the cost of producing gasoline and increase the supply of gasoline
Explanation:
Gasoline is derived from the distillation of crude oil which means that Crude oil is the main raw material in the production of gasoline. This means that if crude oil sees a reduction in price, input costs for gasoline will decrease as well.
Producers of gasoline will take advantage of this to buy more crude oil and therefore process and make more gasoline which will increase the supply of gasoline in the market and reduce its price.
Raatz Corporation's total current assets are $370,000, its noncurrent assets are $660,000, its total current liabilities are $220,000, its long-term liabilities are $410,000, and its stockholders' equity is $400,000. Working capital is: Select one: a. $370,000 b. $150,000 c. $250,000 d. $400,000
Answers
Answer:
b. $150,000
Explanation:
The computation of the working capital is shown below:
= Total current assets - total current liabilities
= $370,000 - $220,000
= $150,000
We simply applied the above formula
And, the same is to be considered
Hence, the working capital is $150,000
Therefore the correct option is b. $150,000
All the other options are wrong.