Valley Manufacturing reported sales of $800,000, net operating income of $40,000, and average invested assets of $400,000. Based on this, Valley's investment turnover is:_____
Answer:
2
Explanation:
Calculation for Valley's investment turnover
Using this formula
Investment turnover=Sales/Average invested assets
Let plug in the formula
Investment turnover=$800,000/$400,000
Investment turnover=2
Therefore Valley's investment turnover is 2
Suppose that a monopoly computer chip maker increases production from 10 microchips to 11 microchips. If the market price declines from $30 per unit to $29 per unit, marginal revenue for the eleventh unit is:
Answer:
$19
Explanation:
Marginal revenue is the change in revenue when production increases by one unit
Marginal revenue = change in total revenue / change in quantity produced
total revenue 1 = $30 x 10 = $300
Total revenue 2 = $29 x 11 = $319
change in total revenue = $319 - $3000 = $19
Change in quantity produced = 11 - 10 = 1
Marginal revenue = $19 / 1 = 19
What are four great aspects of your personality??
Answer: I am responsible, friendly, hard-working, and empathetic.
Explanation: Regarding responsibility, I am someone who always tries to do his job, doing his best. I am kind as I treat each person with respect and without an overbearing attitude. I am a hard worker since I do not rest until I have my work ready and as a psychologist every day I learn to be more empathetic, to put myself in the place of the other, and thus understand their situation.
Lite Travel Company's accounting records include the following information:
Payments to suppliers $49,000
Collections on accounts receivable 77,000
Cash sales 47,000
What is the amount of net cash provided by operating activities indicated by the amounts provided?
S Company reported net income for 2016 in the amount of $440,000. The company's financial statements also included the following:
Increase in accounts receivable $ 83,000
Decrease in inventory 63,000
Increase in accounts payable 240,000
Depreciation expense 107,000
Gain on sale of land 148,000
What is net cash provided by operating activities under the indirect method?
Answer:
1. Lite Travel Company
The amount of net cash provided by operating activities is:
$75,000.
2. S Company
The net cash provided by operating activities under the indirect method is:
$767,000.
Explanation:
a. Data and Calculations:
1. Payments to suppliers ($49,000 )
Collections on accounts receivable 77,000
Cash sales 47,000
Net cash provided by operations $ 75,000
2. Net Income $440,000
Add Depreciation expense 107,000
Adjusted cash flow $547,000
Increase in accounts receivable (83,000 )
Decrease in inventory 63,000
Increase in accounts payable 240,000
Net cash provided by operations $767,000
b) The net cash provided by operating activities represents the cash that an entity generates from its normal operating activities as separate from other sources like financing and investing activities.
Jeffery Davids has invested in something that acts like a mutual fund and that invests in hospitals all over the country. He knows there are federal laws that require this type of investment to distribute at least 90 percent of the income to shareholders and that requires there be at least 100 shareholders. What type of investment has Jefferson made?
a. REIT
b. Foreclosure
c. Direct investment
d. Participation certificate
e. Limited partnership
Answer:
Option a: REIT
Explanation:
A REIT is simply known as Real Estate Investment Trust is a firm or organization that is responsible for pooling of investor funds and thereby investing them in real estate or uses them to so as to produce both construction and mortgage loans. REITS works by enabling companies to use the combined investments of many to purchase a real estate property and it allows both small and large investors to own a share of real estate.
Types of REITs includes Equity REITs which focus on own Properties and Mortgage REITs primarily focus own Mortgage Debt. People iinvest in REITS because it provide greater diversification, potentially higher total returns and/or lower overall risk.
Bonita Industries reported net income of $58000 for the year ended December 31, 2021 Included in net income were depreciation expense of $8800 and a gain on sale of equipment of $2200. Each of the following accounts increased during 2021: Accounts receivable $2800 Inventory $4100 Prepaid rent $7400 Available-for-sale securities $1100 Accounts payable $4800 What is the amount of cash provided by operating activities for Bonita Industries for the year ended December 31, 2021?
Answer:
the Cash provided by operating activities is $55,100
Explanation:
The computation of the cash provided by operating activities is shown below;
Cash provided by operating activities:
= Net income + Depreciation - Gain on sale or asset - Increase in accounts receivable - Increase in inventory - Increase in prepaid rent + Increase in accounts payable
= $58,000 + $8,800 - $2,200 - $2,800 - $4,100 - $7,400 + $4,800
= $55,100
Hence, the Cash provided by operating activities is $55,100
Lightsey Natural Dying Corporation measures its activity in terms of skeins of yarn dyed. Last month, the budgeted level of activity was 14,800 skeins and the actual level of activity was 15,100 skeins. The company's owner budgets for dye costs, a variable cost, at $0.51 per skein. The actual dye cost last month was $8,660. What would have been the spending variance (purchase price variance) for dye costs
Answer:
Direct material price variance= $966.4 unfavorable
Explanation:
Giving the following information:
Actual level of activity was 15,100 skeins.
Standard cost= $0.51 per skein.
The actual dye cost last month was $8,660.
To calculate the direct material price variance, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
Actual price= 8,660 / 15,100= $0.574
Direct material price variance= (0.51 - 0.574)*15,100
Direct material price variance= $966.4 unfavorable
An analyst gathers the following information about Meyer, Inc.: Meyer has 1,000 shares of 8% cumulative preferred stock outstanding, with a par value of $100 and liquidation value of $110. Meyer has 20,000 shares of common stock outstanding, with a par value of $20. Meyer had retained earnings at the beginning of the year of $5,000,000. Net income for the year was $70,000. This year, for the first time in its history, Meyer paid no dividends on preferred or common stock. a. Calculate the total book value of Meyer's common stock. b. What is the book value per share of Meyer's common stock
Answer and Explanation:
The computation is shown below
a. Total book value is
= Equity par value + retained earnings + net income
= 20,000 shares × $20 + $5,000,000 + $70,000
= $5,470,000
b. The book value per share is
= Equity book value ÷ number of shares
= $5,470,000 ÷ 20,000shares
= $273.50
Hence, the total book value and book value per share is $5,470,000 and $273.50 respectively
Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that the average total cost when 5 units of output are produced is $60, and the marginal cost of the sixth unit of output is $120. What is the average total cost when six units are produced
Answer:
Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that the average total cost when 5 units of output are produced is $60, and the marginal cost of the sixth unit of output is $120. What is the average total cost when six units are produced
Flavor Enterprises has been approached about providing a new service to its clients. The company will bill clients $180 per hour; the related hourly variable and fixed operating costs will be $85 and $14, respectively. If all employees are currently working at full capacity on other client matters, the per-hour opportunity cost of being unable to provide this new service is:
Answer:
Flavor Enterprises
The per-hour opportunity cost of being unable to provide this new service is:
$81.
Explanation:
a) Data and Calculations:
Amount billable to clients per hour = $180
Variable operating cost per hour = $85
Fixed operating cost per hour = 14
Total operating cost per hour = $99
Opportunity cost = $180 - $99 = $81
b) The opportunity cost for Flavor Enterprises being unable to provide this new service is the net benefit that the enterprise will loss. While it costs the enterprise a total of $99 in operating cost per hour, the enterprise will receive $180 per hour in revenue. Therefore, the net benefit lost if the service is not provided per hour is the difference between the $180 revenue and the $99 operating costs, which equals $81.
5 Disadvantage of sole proprietorship?
Snoopy, Inc. records its bad debt expense on the credit sales method. Total sales during 2020 were $1,500,000, which consisted of $300,000 of cash sales and the remainder were credit sales. Snoopy's estimation is that 3% of net sales would be uncollectible. During the year, Snoopy wrote off $100,000 of accounts receivable and the allowance for doubtful accounts amount is $50,000. What is the amount of bad debt expense for 2020
Answer:
the amount of bad debt expense for the year 2020 is $36,000
Explanation:
The computation of the amount of bad debt expense is shown below:
= Estimation of 3% net sales that would be uncollectible
= 3% of ($1,500,000 - $300,000)
= 3% of $1,200,000
= $36,000
Hence, the amount of bad debt expense for the year 2020 is $36,000
The same is to be considered
In the Month of March, Digby received orders of 182 units at a price of $15.00 for their product Deal, and in April receives an order for 46 units of their product Deal at $15.00. Digby uses the accrual method of accounting and offers 30 day credit terms. Digby delivers 0 units in March, 182 units in April and 46 units in May. They received payment for 182 units in April, and payment for 46 units in May. How much revenue is recognized on the March income statement from this order
Answer: 0
Explanation:
Accrual accounting method simply means when revenue or expenses are written down and recorded at the time that the transaction took place and not when payment was gotten.
The revenue that is recognized on the March income statement will be 0. This is because the delivery was in April and none took place in March.
A zero coupon bond pays no interest-only it face value of $1,000 at maturity. One such bond has a maturity of 18 years and an initial price of $130. What annual interest rate is earned if the bond is bought when issued and held to maturity?
Answer:
12%
Explanation:
FV = PV*(1+i)^n
FV = 1000, PV = 130, i = annual interest rate, n = 18
∴ 1000 = 130*(1+i)^18
==> (1+i)^18 = 1000/130
==> 1+i = (1000/13)^(1/18)
i = 1.12001895 - 1
i = 0.12
i = 12%
Thus, the annual interest rate is 12%
If consumers view the output of any firm in a market to be identical to the output of any other firm in the market, the demand curve for the output of any given firm A. will be identical to the market demand curve. B. will be horizontal. C. will be vertical. D. cannot be determined from the information given.
Answer:
B. will be horizontal.
Explanation:
In the case when the firm is in the perfect competition market so here the demand curve would be horizontal as because of the same product and also the transaction cost is lesser that means if someone rise the prices so the producer would lost all its revenue
Therefore as per the given situation, the option b is correct
g Suppose the working-age population of a fictional economy falls into the following categories: 30 are retired; 45 are stay-at-home parents; 120 are employed full time; 40 are employed part time; 25 are unemployed but are actively looking for employment; 15 are unemployed and are not actively looking for employment. The official unemployment rate as calculated by the BLS would be
Answer: 13.5%
Explanation:
The Unemployment rate takes into account those who are of working age and willing to and actively seeking work.
Total labor force = 120 + 40 + 25 = 185
Unemployed = 25 people
Unemployment rate = 25/185
= 13.5%
Assume the sales budget for April and May is 47,000 units and 49,000 units, respectively. The production budget for the same two months is 44,000 units and 45,000 units, respectively. Each unit of finished goods required 3 pounds of raw materials. The company always maintains raw materials inventory equal to 30% of the following months production needs. If the company pays $2.80 per pound of raw material, then what is the estimated cost of raw material purchases for April
Answer:
Direct material cost= $372,120
Explanation:
To calculate the purchases of direct material for April, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Production= 44,000*3= 132,000 pounds
Desired ending inventory= (45,000*3)*0.3= 40,500 pounds
Beginning inventory= (132,000*0.3)= 39,600 pounds
Purchases= 132,000 + 40,500 - 39,600
Purchases= 132,900 pounds
Direct material cost= 132,900*2.8= $372,120
A company issues $16200000, 5.8%, 20-year bonds to yield 6% on January 1, 2020. Interest is paid on June 30 and December 31. The proceeds from the bonds are $15825541. Using effective-interest amortization, how much interest expense will be recognized in 2020?
Answer:
The amount of interest expense which will be recognized in 2020 is $949,681.45.
Explanation:
The following are given in the question:
Bond value = $16200000
Bond interest rate = 5.8%
Proceed from bond = $15825541
Yield rate = 6%
The amount of interest expense which will be recognized in 2020 can now be calculated as follows:
Interest expense for January 1, 2020 to June 30, 2020 = Proceed from bond * Yield rate * (6 / 12) = $15825541 * 6% * (6 / 12) = $474,766.23
Discount amortized during first 6 months = Interest expense for January 1, 2020 to June 30, 2020 - (Bond value * Bond interest rate * (6 / 12)) = $474,766.23 - ($16200000 * 5.8% * (6 / 12)) = $474,766.23 - 469,800 = $4,966.23
Interest expense for July 1, 2020 to December 31, 2020 = (Proceed from bond + Discount amortized during first 6 months) * Yield rate * (6 / 12) = ($15825541 + $4,966.23) * 6% * (6 / 12) = $474,915.22
Interest expense to be recognized in 2020 = Interest expense for January 1, 2020 to June 30, 2020 + Interest expense for July 1, 2020 to December 31, 2020 = $474,766.23 + $474,915.22 = $949,681.45
Therefore, the amount of interest expense which will be recognized in 2020 is $949,681.45.
The efficient market hypothesis has several forms. The weak form states that past price data is unrelated to future prices. prices reflect all public information. all information both public and private is immediately reflected in stock prices. none of these options are true.
Answer:
past price data is unrelated to future prices.
Explanation:
The efficient market hypothesis (EMH) is a theory of investment in which it proves that it is unattainable to strike the stock market.
Here there are 3 forms that is a weak one, semi-strong one and strong one
In the weak form it implies that there is an efficient market that represent the market information also the market rate of return is independent but the the rates that are in past have no impact on the future rates
therefore the first option is correct
Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $8.50 per share. If the required return on this preferred stock is 6.5%, then at what price should the stock sell
Answer:
$130.77
Explanation:
Price of preferred stock = Annual dividend / Required return
Price of preferred stock = $8.50/0.065
Price of preferred stock = $130.7692307692308
Price of preferred stock = $130.77
the stock price is : $130.77
Hope this helps! good luck :)
Consumers Choice store accepts a shipment of EZ2U-brand tablets from Digital Devices, Inc. Consumers Choice later discovers a defect in the tablets, revokes acceptance, and returns the tablets via GoBack, Inc. During the return, the tablets are lost. The loss is suffered by
Answer:
Digital devices
Explanation:
Since in the question it is mentioned that the consumer choice found the defect in the tablets and the return the same. While returning it, the tables are lost so here the loss suffered by the digital devices as the devices are defective so the loss would be born by them only
Therefore as per the given situation, the above represents the answer
Lump-sum taxes are rarely used in the real world because:_______________
a. while lump-sum taxes have low administrative burdens, they have high deadweight losses.
b. while lump-sum taxes have low deadweight losses, they have high administrative burdens.
c. lump-sum taxes are often viewed as unfair because they take the same amount of money from both poor and rich.
d. lump-sum taxes are very inefficient.
Answer:
c. lump-sum taxes are often viewed as unfair because they take the same amount of money from both poor and rich.
Explanation:
To understand this question, you have to first understand what lump-sum taxes are.
Lump-sum taxes are a system of taxes where everybody pays the same amount of tax no matter their economic status, or their actions. Basically, lump-sum taxes take the same amount of money from the rich and the poor, hugely increasing the burden on the poor and lessening that of the rich.
As an example, a lump-sum tax of $100 would require everybody to pay $100. To a person earning, say $120, that would be a huge hit, and be a huge burden on his normal life. However, to a rich person who earns, say, $10000, that would be much more easier for the rich person.
Hence, lump-sum taxes are often viewed as unfair because of the unfair advantage the rich have over the poor in tax-paying.
Hope this helped!
On January 1, Year 1, Missouri Co. purchased a truck that cost $32,000. The truck had an expected useful life of 10 years and a $3,000 salvage value. Missouri uses the double declining-balance method. What is the amount of depreciation expense recognized in Year 2?
Answer:
Annual depreciation= $4,640
Explanation:
Giving the following information:
Purchase price= $32,000
Useful life= 10 years
Salvage value= $3,000
To calculate the depreciation expense, we need to use the following formula each year:
Annual depreciation= 2*[(book value)/estimated life (years)]
Year 1:
Annual depreciation= 2*[(32,000 - 3,000) / 10]
Annual depreciation= $5,800
Year 2:
Annual depreciation= 2*[(29,000 - 5,800)/10]
Annual depreciation= $4,640
In this discussion question you have the opportunity to be creative and to relate what you have learned to your professional lives. Please explore and critically think about some of the learning outcomes and concepts presented in this course. Please effectively communicate how you would lead an organization (or a group of people within the organization) by applying the knowledge you have learned ethically and responsibly. Your discussion should also include innovative thinking, and information-technology aspects (such as the Internet, social-media, computers, etc.) that may assist you in decision-making. You may frame your discussion around any functional component of business, and in any context; problem-solving, management, leadership, organizational behavior, etc.
Answer:
Creating a friendly culture will motivate the employees to attend work everyday, setting goals and targets with their input which makes the targets and goals look achievable, this will also motivate the employees and result in better performance. Sense of responsibility is also important if they are given a task they should be liable for it and they should be accountable for the work done by themselves this initiative will minimize mistakes and encourage perfection.
Explanation:
Creating a friendly culture will motivate the employees to attend work everyday, setting goals and targets with their input which makes the targets and goals look achievable, this will also motivate the employees and result in better performance. Sense of responsibility is also important if they are given a task they should be liable for it and they should be accountable for the work done by themselves this initiative will minimize mistakes and encourage perfection.
ABC Company was organized on January 1, 2021. The firm was authorized to issue 150,000 shares of $8 par value common stock. During 2021, ABC Company had the following transactions relating to stockholders' equity: Issued 45,000 shares of common stock at $10 per share. Issued 30,000 shares of common stock at $11 per share. Reported a net income of $150,000. Paid dividends of $75,000. What is total paid-in capital at the end of 2021
Answer: $780,000
Explanation:
The Paid-In Capital refers to the amount of Equity in the company which can also be said to be the amount of money raised from share sales;
= (45,000 * 10) + (30,000 * 11)
= $780,000
What is the Net Present Value of the following cash flow streams at an interest rate of 8.25%: at year : sor year 1: $75 year 2: $225; year 3: S0 and year 4 $300,
Answer:
the net present value is $480
Explanation:
The computation of the net present value is shown below
Year Cash flows discount rate Present value
0 -$0 1 -$0
1 $75 0.924 $69
2 $225 0.853 $192
3 $0 0.788 $0
4 $300 0.728 $218
Net present value $480
hence, the net present value is $480
Keating Co. is considering disposing of equipment with a cost of $77,000 and accumulated depreciation of $53,900. Keating Co. can sell the equipment through a broker for $28,000 less 5% commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $47,000. Keating will incur repair, insurance, and property tax expenses estimated at $12,000 over the five-year period. At lease-end, the equipment is expected to have no residual value. The net differential income from the lease alternative is $10,080 $5,880 $12,600 $8,400
Answer:
$8,400
Explanation:
net differential income = total lease revenue - costs associated to leasing the equipment - net selling price
total lease revenue = $47,000costs associated to lease = $12,000net selling price = $28,000 x (1 - 5%) = $26,600net differential revenue = $47,000 - $12,000 - $26,600 = $8,400
On February 1, 2020, Bramble Corp. purchased a parcel of land as a factory site for $315000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2020. Costs incurred during this period are listed below: Demolition of old building $ 22000 Architect's fees 35400 Legal fees for title investigation and purchase contract 5600 Construction costs 1401000 (Salvaged materials resulting from demolition were sold for $10000.) Bramble should record the cost of the land and new building, respectively, as
Answer and Explanation:
The computation of the cost of the land and the new building is as follows
For land
= Purchase value + demolition of old building + legal fees - salvage materials
= $315,000 + $22,000 + $5,600 - $10,000
= $332,600
And, for building it is
= Architect fees + construction cost
= $35,400 + $1,401,000
= $1,436,400
Hence, the same is to be considered
Calla Company produces skateboards that sell for $56 per unit. The company currently has the capacity to produce 95,000 skateboards per year, but is selling 81,800 skateboards per year. Annual costs for 81,800 skateboards follow. Direct materials $ 981,600 Direct labor 613,500 Overhead 954,000 Selling expenses 558,000 Administrative expenses 477,000 Total costs and expenses $ 3,584,100 A new retail store has offered to buy 13,200 of its skateboards for $51 per unit. The store is in a different market from Calla's regular customers and would not affect regular sales. A study of its costs in anticipation of this additional business reveals the following: 1. Direct materials and direct labor are 100% variable. 2. 50 percent of overhead is fixed at any production level from 81,800 units to 95,000 units; the remaining 50% of annual overhead costs are variable with respect to volume. 3. Selling expenses are 70% variable with respect to number of units sold, and the other 30% of selling expenses are fixed. 4. There will be an additional $1.60 per unit selling expense for this order. 5. Administrative expenses would increase by a $890 fixed amount.Required: Prepare a three-column comparative income statement that reports the following: a. Annual income without the special order. b. Annual income from the special order. c. Combined annual income from normal business and the new business.(Do not round your intermediate calculation round your cost and expenses values to nearest whole decimal places.)
Answer:
Calla Company
Three-column comparative Income Statement:
Normal Special order Total
Sales Revenue $4,580,800 $673,200 $5,254,000
Cost of sales:
Direct materials $ 981,600 $158,400 $1,140,000
Direct labor 613,500 99,000 712,500
Overhead 954,000 76,973 1,030,973
Selling expenses 558,000 84,151 642,151
Administrative expenses 477,000 890 477,890
Total costs and expenses $ 3,584,100 $419,414 $4,003,514
Net income $ 996,700 $ 253,786 $1,250,486
Explanation:
a) Data and Calculations:
Annual production capacity = 95,000 units
Actual annual production and sales = 81,800 units
Special order (units) = 13,200
Selling price (normal) = $56 per unit
Special order selling price = $51 per unit
Direct materials $ 981,600
Direct labor 613,500
Overhead 954,000
Selling expenses 558,000
Administrative expenses 477,000
Total costs and expenses $ 3,584,100
Three-column comparative Income Statement:
Normal Special order Total
Sales volume 81,800 13,200 95,000
Selling price $56 $51
Sales Revenue $4,580,800 $673,200 $5,254,000
Cost of sales:
Direct materials $ 981,600 $158,400 $1,140,000
Direct labor 613,500 99,000 712,500
Overhead 954,000 76,973 1,030,973
Selling expenses 558,000 84,151 642,151
Administrative expenses 477,000 890 477,890
Total costs and expenses $ 3,584,100 $419,414 $4,003,514
Net income $ 996,700 $ 253,786 $1,250,486
1. Direct materials cost per unit = $981,600/81,800 = $12
2. Direct labor cost per unit = $613,500/81,800 = $7.50
3. Variable Overhead cost = $954,000/2 = $477,000
Variable overhead cost per unit = $477,000/81,800 = $5.83129
4. Variable selling expenses = 70% of $558,000 = $390,600
Variable selling expenses per unit = $390,600/81,800 = $4.77506
Additional selling expense per unit = $6.37506 ($4.77506 + $1.60)
Selling expense for special order = 84,151($6.37506 * 13,200)
5. Administrative expenses increased by $890
Wilco LLC uses the weighted average method to determine equivalent units of production. Wilco LLC reported that in last quarter that 10,000 units were completed and moved to finish goods inventory. Wilco also determines that 7,000 units were in ending Goods in Process inventory. The units in ending Goods in Process inventory were 50% finished in regards to all costs. Determine Wilco's equivalent units of production for the quarter.
Answer:
the number of equivalent units for the production is 13,500 units
Explanation:
The computation of the number of equivalent units for the production is shown below:
Units completed and transferred is 10,000 units
Add Ending work in the process [7,000 × 0.50] 3,500 units
Total equivalent units 13,500 units
Hence, the number of equivalent units for the production is 13,500 units
The same is relevant