Answers
Answer:
The company should purchase the machine.
Explanation:
Note: The complete question is attached below
Forecasted contribution margin income statement
For the Year Ended December 31
Particulars Amount$
Sales 2,440,000
Variable cost(10,000*185(195-10)) 1,850,000
Contribution margin 590,000
Fixed cost (327,600+42,500) 370,100
Income $219,900
Because the income increase by $57,500 due to the pruchase, the company should purchase the machine
Related Questions
What is the APR (interest rate) on this card for Purchases made during the first six months that a cardholder has this card?
a. 0%
b. 15.24%
c. 23.24%
d. 25.24%
Answers
Answer:
a. 0%
Explanation:
The first line of the schumer box had it on
Calculate the after-tax cost of debt using following bond information. A four year bond has a 7 percent coupon rate and a $1000 face value. If the market value of the bond is $788, assuming that the bond makes annual coupon payments and the tax rate is 35%.
a. 7.16 %
b. 14.32 %
c. 12.12 %
d. 9.31 %
e. 5.01 %
Answers
Answer:
d. 9.31 %
Explanation:
in order to solve this question you cannot use the approximate yield to maturity since it will yield an approximation, but not an exact answer:
approximate YTM = {70 + [(1,000 - 788)/4]} / [(1,000 - 788)/2] = 13.76%
after tax cost of debt = 13.76% x 0.65 = 8.94%, but that is not an option
we must determine the exact yield to maturity which is determined by the following formula:
$788 = $70/(1 + i) + $70/(1 + i)² + $70/(1 + i)³ + $1,070/(1 + i)⁴
the simplest way to solve this is by using a financial calculator since the math is complicated. The exact yield to maturity = 14.324%
after tax cost of debt = 14.324% x (1 - tax rate) = 14.324% x 0.65 = 9.31%
Carnes Electronics sells consumer electronics that carry a 90-day manufacturer’s warranty. At the time of purchase, customers are offered the opportunity to also buy a two-year extended warranty for an additional charge. During the year, Carnes received $412,000 for these extended warranties (approximately evenly throughout the year). Required: 1-a. Does this situation represent a loss contingency? 1-b. How should it be accounted for? 2. Prepare journal entries that summarize sales of the extended warranties and any aspects of the warranty that should be recorded during the year.
Answers
Answer: See explanation
Explanation:
a. This is not a loss contingency. A loss contingency occurs when the value of an asset is reduced because of an occurence on the future. This isn't the case here as a separate sales transaction occured.
b. To account for it, we have to defer the revenue as a liability and then we will use the straight line basis to calculate the warranty expense.
2. Dr Cash $412,000
Cr Unearned revenue - extended warranties $ 412,000
(To record the sale of extended warranty)
Dr Unearned revenue - extended warranties. $57937.50
Cr. Revenue - Extended Warranties $57937.50
(To record revenue earned on extended warranty)
What is the equity beta for a firm with asset beta equal to 0.9, and D/E ratio of 0.4, and tax rate equal to 35%?
Answers
Answer:
the equity beta of the firm is 1.134
Explanation:
The computation of the equity beta is shown below:
Equity beta is
= Asset beta × [1 + (1 - tax rate) × Debt-equity ratio]
= 0.9 × [1 + (1 - 0.35) × 0.4]
= 0 9 × 1.26
= 1.134
Hence, the equity beta of the firm is 1.134
We simply applied the above formula so that the correct value could come
And, the same is to be considered
) A corporation acquires new funds only when its securities are sold in the
Answers
Answer:
(a) in the primary market by an investment bank.
Multiple -choice options
(a) in the primary market by an investment bank.
(b) in the primary market by a stock exchange broker.
(c) in the secondary market by a securities dealer.
(d) in the secondary market by a commercial bank.
Explanation:
The securities exchange has both primary markets and secondary markets. The primary market deals with new shares or securities that corporations offer to investors. Once the securities have been issued, they become available for trading at the secondary market.
If a corporation wishes to raise additional funds, it issues new shares to investors. It contracts an investment banker who assists in planning, organizing, and facilitating the entire process. Since the corporation is offering new shares, they are issued in the primary market.
You can receive 400,000 five years from today or 1,000,000 thirty years from today. what interest rate makes them equivalent?
Answers
Answer:
3.73%
Explanation:
The computation of the rate of interest that makes the equivalent is shown below:
As we know that
Present value=Cash flow × Present value discounting factor ( interest rate% , time period)
Let us assume the interest rate be x
where,
Present value of $400,000 is
= $400,000 ÷ 1.0x ^5
And,
Present value of $1,000,000 be
= $1,000,000 ÷ 1.0x^30
Now eqaute these two equations
$400,000 ÷ 1.0x^5 = $1,000,000 ÷ 1.0x^30
(1.0x^30) ÷ (1.0x^5) = $1,000,000 ÷ $400,000
1.0x^(30 - 5)=2.5
1.0x^25=2.5
1.0x = (2.5)^(1 ÷ 25)
x =1.03733158 - 1
= 3.73%
In a local NFP elementary school’s statement of cash flows, a contribution restricted for use on a new building project would be reported as:_________.A. A capital and related financing activity. B. A financing activity. C. An investing activity. D. An operating activity.
Answers
Answer: B. A financing activity.
Explanation:
A Financing activity is one that involves the provision of capital to the company or project being built which is why long term liabilities and equity will fall under this category.
This contribution that has been earmarked for use on the construction of a new building will therefore be treated as a financing activity because it represents capital being provided for the elementary school.
Had it been the Elementary school providing the funds itself then this would have been an Investing activity.
The balance in the Bonds Payable is a credit of $79,000. The balance in the Premium on Bonds Payable is a credit of $1,600. What is the bond carrying amount?
a. $1,600
b. $80,600
c. $79,000
d. $77,400
Answers
Answer:
b. $80,600
Explanation:
The computation of the bond carrying amount is shown below:
= Balance in the bond payable + premium on bond payable
= $79,000 + $1,600
= $80,600
Hence, the bond carrying amount is $80,600
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Therefore the correct option is b.
Which of the following was the first nation to prosper due to the use of power equipment vice (might be via) hand tools?
A. France
B. Great Britain
C. United States
Answers
Answer:
B). Great Britain
Explanation:
The first nation expanded due to the use of hand tools and power equipment was Great Britain. Its industries of handtools played a great role in flourishing the trade industries of Britain and gave a new significance to agricultural raw materials and craftsmen. The Great Britain's idea also gained from its rule of India as the Indian products suddenly raised demand in the market which compelled the state to bring a handmade craft revolution. Thus, option B is the correct answer.
What restriction did the US government place on advertising in 1997?
O
A.
a ban on tobacco advertising
B.
a ban on direct mail advertising
OC.
a ban on advertisements related to food, cosmetics, and healthcare products
D.
a ban on deceptive advertisements
O E.
a ban on internet advertisements
Answers
Answer:
The answer should be D, a ban of deceptive advertisements.
Explanation:
In the 90s the government cracked down on deceptive advertising more than ever and more laws on the matter were added. The only other option that was actually ever banned was A, none of the other choices were ever banned. The ban on tobacco happened in the 70s under Nixon, that makes D the only possible answer. Hope this helps! :)
Answer:
D
Explanation:
The Tobacco Master Settlement Agreement reached in 1997 bans outdoor, billboard and public transportation advertising of cigarettes in 46 states. Restrictions on cigarette were further tightened in 2010 with passage of the Family Smoking Prevention and Tobacco Control Act.
Paunch Burger has a beta of 1.2 and just paid a dividend of $2.30 that is expected to grow at 3.2%. If the risk-free rate is 3% and the market risk premium is 6%, what should be the price of the stock
Answers
Answer:
P0 = $33.9085 rounded off to $33.91
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 is the dividend paid recently
D0 * (1+g) is dividend expected for the next period /year
g is the growth rate
r is the required rate of return or cost of equity
First we need to calculate the required rate of return or r using the CAPM.
Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * rpM
Where,
rRF is the risk free rate
rpM is the market risk premium
r = 0.03 + 1.2 * 0.06
r = 0.102 or 10.2%
Now using the formula for P0 under the constant dividend growth model,
P0 = 2.3 * (1+0.032) / (0.102 - 0.032)
P0 = $33.9085 rounded off to $33.91
Walters Corporation sells radios for $50 per unit. The fixed costs are $525,000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $125,000 and variable costs will be 50% of the selling price. The new break-even point in units is:_____. a. 26,250.b. 26,000.c. 25,750.d. 21,000.
Answers
Answer:
b. 26,000 units
Explanation:
We will calculate break even point as;
Break even point = Fixed expenses ÷ Contribution margin per unit
Where,
Fixed costs = $525,000 + $125,000 = $650,000
Also, Contribution margin per unit = Selling price per unit - Variable expense per unit
Selling price per unit = $50
Variable expense per unit
= 50% × $50
= $25
Contribution margin per unit
= $50 - $25
= $25
Therefore, the break even point in units
= $650,000 ÷ $25
= 26,000 units
More needs to be done to capitalise on the power of the peer-to-peer networks that many music downloaders still use. A recent study found that regular downloaders of unlicensed music spent an average of £5.52 a month on legal digital music. This compares to just £1.27 spent by other music fans. The research clearly shows that music fans who break
piracy laws are highly valuable customers. It also suggests that they are eager to adopt legitimate music services in the future. One researcher pointed out that "There's a myth that all illegal downloaders are mercenaries hell-bent on breaking
the law in pursuit of free music. In reality hardcore fans "are extremely enthusiastic about paid-for services, as long as they are suitably compelling, he said.
People who download unlicensed music tend not buy legal digital music.
A True
B False
C Cannot Say
Answers
The answer to the prompt that "People who download unlicensed music tend not buy legal digital music" is False.
Judging from the passage above, the answer to this prompt is false.
The passage makes it clear that those who regularly downloaded unlicensed music also "spent an average of £5.52 a month on legal digital music."
This shows that this crop of individuals are willing to purchase legal digital music.
Learn more about unlicensed music here:
https://brainly.com/question/7668788
Sheffield Corp. manufactures a product with a standard direct labor cost of two hours at $18 per hour. During July, 1800 units were produced using 3800 hours at $18.30 per hour. The labor price variance was
Answers
Answer:
$1,140(A)
Explanation:
The labor price variance is computed as;
= (SP - AP) × AH
Where:
SP = Standard price hour = $18 per hour
AP = Actual price per hour = $18.30 per hour
AH = Actual hours used = 3,800
Labor price variance = ($18 - $18.30) × 3,800 hours
Labor price variance = $1,140 (A)
Therefore, the labor price variance was $1,140(A)
PackMan Corporation has semiannual bonds outstanding with nine years to maturity and the bonds are currently priced at $754.08. If the bonds have a coupon rate of 7.25 percent, then what is the after-tax cost of d
Answers
Answer:
The after-tax cost of debt is 8.22%
Explanation:
The cost of debt is the actual cost of a business to raise debt finance. Yield to maturity is the cost of debt of a bond.
calculate the YTM as follow
Coupon = $1000 x 7.25% x 6/12 = $36.25
Number of periods = 9 yeas x 12/6 = 18 periods
Use the financial calculator as below
2nd I/Y 2, FV 1000, PMT 36.25, PV -754.08, N 18, CPT I/Y
Yield to maturity = 11.7499%
Now calculate the after tax YTM
YTM ( after tax ) = 11.7499% x ( 1 - 30% )
YTM ( after tax ) = 8.22%
Avery Co. has $1.1 million of debt, $1 million of preferred stock, and $2.2 million of common equity. What would be its weight on debt
Answers
Answer:
0.26
Explanation:
Given that :
Value of debt = $1.1 million
Value of preferred stock = $1 million
Value of common equity = $2.2 million
Total value of company's funds :
(value of debt + value of Preffered stock + value of common equity)
(1.1 + 1 + 2.2) million
= $4.3 million
Hence, weight of debt :
Value of debt / total value of company's funds
$1.1 million / $4.3 million
= 0.2558
= 0.26
Given the following information for Smith Company's Northern Division, what is the division's EBITDA margin?
Revenue $44,140
Operating income 18,112
Depreciation 5,000
Amortization 1,422
Tax rate 20%
a. $37,718
b. $13,112
c. $24,534
d. $19,627
Answers
Answer:
EBITDA margin is 55.58%
Explanation:
EBITDA margin is computed as;
= EBITDA / Total revenue
Where,
EBITDA = Earnings before interest and taxes + depreciation + amortization
EBITDA margin = ($18,112 + $5,000 + $1,422) / $44,140
EBITDA margin = $24,534 / $44,140
EBITDA margin = 55.58%
A firm has a machine it can sell for $40,000. The book value of the machine is currently $20,000. If the firm sells the machine, what are the net proceeds from the sale? Assume that the tax rate is 40%. Round to the nearest penny.
Answers
Answer:
the net proceeds from the sale is $32,000
Explanation:
The computation of the net proceeds from the sale is shown below:
Net Proceeds = Sale Price - Tax × (Sale price - purchase price)
= $40,000 - 40% × ($40,000 - $20,000)
= $40,000 - $8,000
= $32,000
Hence, the net proceeds from the sale is $32,000
We simply applied the above formula so that the correct value could come
And, the same is to be considered
A few years ago the British government was considering retiring, or buying back from investors, some outstanding consols that had annual coupons of . A consol is:______
a. a coupon bond that pays a variable coupon rate and does not mature.
b. a coupon bond that pays a fixed coupon rate and has a fixed maturity date.
c. a coupon bond that pays a variable coupon and has a fixed maturity date.
d. a coupon bond that pays a fixed coupon rate and does not mature.
If the yield to maturity on other long-term British government bonds was 2.0%, the price the British government is likely to offer investors is £ _________
Answers
Answer: d. coupon bond that pays a fixed coupon rate and does not mature.
$3250
Explanation:
A consol is a coupon bond that pays a fixed coupon rate and does not mature. Consols are consolidated annuities that are perpetual. A steady amount of interest is paid for a consol even though they're not redeemable
Price of a consol will be gotten as fixed coupon amount divided by the rate of return. Let's assume that the fixed coupon amount is $65, then the price will be:
= 65/2%
= $3250
The assets for BIZZ0 in 2018 were $187,300; the liabilities for that year were $275,600; and the net income was $17,700. What was the return on income for the year?
Answers
Answer: 9.45%
Explanation:
From the question, we are informed that the assets for BIZZ0 in 2018 were $187,300, the liabilities for that year were $275,600; and the net income was $17,700.
The return on income for the year will be:
= ( Net Income / Total Assets ) × 100
= ($17,700 / $187,300) × 100
= 0.0945
= 9.45%
The risk free rate is 4%, and the required return on the market is 12%. 1. What is the required return on an asset A with a beta of 1.5?2. What is the reward/risk ratio?3. What is the required return on a portfolio consisting of 40% of the asset above and the rest in an asset with an average amount of systematic risk?
Answers
Answer:
required return 16%
risk/reward 8%
portfolio return 13.60%
Explanation:
Required return=risk-free rate+beta*(market return-risk free rate)
risk-free rate=4%
beta=1.5
market return=12%
required return=4%+1.5*(12%-4%)=16.00%
Reward/risk ratio=market return-risk free rate
reward/risk ratio=12%-4%=8%
Portfolio return=weight of the asset* required return on asset+weight of the rest of the portfolio*market return
weight of the asset=40%
required return=16%
weight of the rest of the portfolio=1-40%=60%
market return=12%
portfolio return=(40%*16%)+(60%*12%)=13.60%
The risk-free rate is termed as the return that is associated with the investment with zero or no risk. It represents the number of investors that would expect a higher return from no-risk investment over a specified period of time.
The answers are:
required return 16%
risk/reward 8%
portfolio return 13.60%
[tex]\begin{aligned}\text{Required return}=\text{risk-free rate}+\text{beta}\times(\text{market return-risk free rate})\end{aligned}[/tex]
risk-free rate=4%
beta=1.5
market return=12%
[tex]\begin{aligned}\text{required return}=4\%+1.5\times(12\%-4\%)=16.00\%\end{aligned}[/tex]
[tex]\begin{aligned}\frac{Reward}{risk}\end{aligned}[/tex] ratio=market return-risk free rate
[tex]\begin{aligned}\frac{\text{reward}}{\text{risk ratio}}=12\%-4\%=8\%\end{aligned}[/tex]
Hence the [tex]\begin{aligned}\frac{Reward}{risk}\end{aligned}[/tex] ratio is 8%
Portfolio return=[tex]\text{weight of the asset}\times\text{ required return on asset}+\text{weight of the rest of the portfolio}\times{\text{market return}}[/tex]
weight of the asset=40%
required return=16%
weight of the rest of the portfolio=1-40%=60%
market return=12%
portfolio return=[tex](40\%*16\%)+(60\%\times12\%)=13.60\%[/tex]
Therefore the required return on a portfolio is 13.60%.
To know more about the risk-free rate, refer to the link below:
https://brainly.com/question/20166183
Mary Alice just won the lottery and is trying to decide between the options of receiving the annual cash flow payment option of $420,000 per year for 25 years beginning today, or receiving one lump-sum amount today. Mary Alice can earn 6% investing this money. At what lump-sum payment amount would she be indifferent between the two alternatives? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided and round final answer to nearest whole dollar amount.)A. $5,369,011B. $6,111,151C. $5,691,151D. $10,500,000
Answers
Answer:
C. $5,691,151
Explanation:
At what lump-sum payment amount would she be indifferent between the two alternatives?
Mary Alice just won the lottery and is trying to decide between the options of receiving the annual cash flow payment option of $420,000
$420,000 x 13.55036* = $5,691,151
*PVAD of $1: n = 25; i = 6%
Buxton Corp. has outstanding borrowings. One of these borrowings is nonconvertible preferred stock (cumulative) with a par value of $85 and an annual dividend rate of 6.20%. This preferred stock is currently selling for $56.50 per share. What is the yield or return (r) on this preferred stock?
a. 9.89%
b. 9.56%
c. 9.32%
d. 9.22%
Answers
Answer:
c. 9.32%
Explanation:
The computation of the yield or return on the preferred stock is shown below:
= (Annual dividend rate × par value ) ÷ current stock price
= (6.20% × $ 85 ) ÷ $56.50
= 9.32%
Hence, the yield or return on the preferred stock is %
Therefore the correct option is c.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
When offering financial products to clients, you may:
a. Omit collecting client identification documents if they are a prior client.
b. Choose which clients are offered products based on your observations and experience.
c. Refuse to accept product applications from clients who request them.
d. All of the above.
e. None of the above.
Answers
Answer:
d. All of the above.
Explanation:
All the three actions are appropriate actions for when offering financial products to clients.
a) is appropriate because prior clients are likely to have most of the information in the company's records.
b) is appropriate because as you gain experience, you become more knowledgeabe and intuitive about which clients should be offered a determined product.
c) is appropriate because as a financial worker, it is your duty to decline requests for financial products from clients who do not meet the given criteria.
Colors of cars in a mall parking lot is?
Categorical
Numerical; discrete
Numerical; continuous
Answers
Answer: Categorical
Explanation:
Categorical data refers to data that enables variables to be grouped into categories but in such a way that there is no ordering to the categories.
In this scenario, the cars will be grouped by their colors but these colors cannot be ordered by saying that red is higher than blue or yellow is higher than white. It is therefore Categorical data.
Which type of supply chain collaboration includes collaborative processes across the supply chain using a set of processes and technology models including a joint business plan, sales forecasting, order planning and forecasting, order generation, and order fulfillment?
Answers
Answer:
Collaborative Planning, Forecasting and Replenishment (CPFR)
Explanation:
Supply chain management can be defined as the effective and efficient management of the flow of goods and services as well as all of the production processes involved in the transformation of raw materials into finished products that meet the insatiable want and need of the consumers. Generally, the supply chain management involves all the activities associated with planning, execution and supply of finished goods and services to the consumers.
The fundamental principle of supply chain management is basically a collaboration between multiple firms. These multiple firms include a company that is saddled with the responsibility of manufacturing, a wholesaler, and a retailer who typically sells the products to the customers or consumers.
Basically, these three (3) firms or individuals are required to collaborate with each other so as to meet the needs of the customers in a timely manner or fashion and at a fair price too.
Collaborative Planning, Forecasting and Replenishment (CPFR) is a type of supply chain collaboration which includes collaborative processes across the supply chain using a set of processes and technology models including a joint business plan, sales forecasting, order planning and forecasting, order generation, and order fulfillment.
A company had total sales of $610,000, net sales of $566,400, and an average accounts receivable of $96,000. Its accounts receivable turnover equals:
Answers
Answer:
5.9
Explanation:
Calculation for It's accounts receivable turnover using this formula
Accounts Receivable Turnover = Net Sales amount /Average Accounts Receivable amount
Let plug in the formula
Accounts Receivable Turnover =$566,400/$96,000
Accounts Receivable Turnover = 5.9
Therefore Its accounts receivable turnover equals: 5.9
Bagrov Corporation had a net decrease in cash of $10,500 for the current year. Net cash used in investing activities was $52,500 and net cash used in financing activities was $38,500. What amount of cash was provided (used) in operating activities?
A. $(101,500) used.
B. $(10,500) used.
C. $101,500 provided.
D. $80,500 provided.
E. $(80,500) used.
Answers
Answer:
I believe the answer to that would be B.
Explanation:
Plz mark as Brainliest!
PERSONAL FINANCE
Use what you have learned about secured and unsecured loans to complete these sentences.
A loan that is associated with a valuable asset that can be taken by the lender is
________. (a secure loan, an unsecured loan)
Ray needs to get a new set of tires for her car, so she uses her credit card. If she does not pay her bills, there is no asset that can be seized. This means her loan is
_______.(a secure loan, an unsecured loan)
Jack agrees to take out a mortgage. If he fails to make his payments, the bank may repossess his house, so his loan is
________.(a secure loan, an unsecured loan)
Answers
Answer:
1.is a secured loan
the second one is an unsecured loan
and the third is a secured loan
The correct words to complete the given sentences would be as follows:
- Secured
- Unsecured loan
- Secured loan
A loan is considered to be secure when the loan requires something like(assets, property, or jewelry) as the support to grant you the amount. While a loan that is not secured do not ask for any kind of security or collateral on the behalf of the loan amount that is paid to you. In the given situation, the first and third case requires security(asset and mortgage) for passing the loan while the second doesn't.Thus, the first and third demonstrate secured loans while the second one exemplifies an unsecured loan.Learn more about "Finance" here:
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Using emails to communicate asynchronously is not a good idea for all of the reasons below except ________.
a) email threads are organized.
b) too much freedom.
c) difficult to find particular emails.
d) it is easy to hide from email.
e) difficulty in finding attachments.
Answers
Answer:
The correct answer is A. Using emails to communicate asynchronously is not a good idea for all of the reasons below except email threads are organized.
Explanation:
Communication via email is very efficient for exchanging non-instantaneous messages, that is, in those in which information is transmitted that does not require constant exchange, such as a chat or a phone call. Therefore, in the case of asynchronous communication, the exchange of emails can cause some part of the communication to be lost, or the messages may be misinterpreted because they are out of order. This provided that the thread of the messages is not ordered, otherwise this misunderstanding could be avoided.