Deal Leasing leased equipment to Hand Company on January 1, 2021. The leased equipment's book value is $420,000 with no estimated residual value at the end of its useful life. The remaining useful life of the leased equipment is 15 years. The lease payments were calculated to provide the lessor a 10% return. Ten annual lease payments of $60,000 are due at the beginning of each year beginning January 1, 2021. Both companies use the straight-line method in depreciation/amortization their assets.
Answers
Answer:
The requirements are missing, so I looked for a similar question. This is a financial lease since the PV of the lease payments represents 97% of the asset's value.
January 1, 2021, equipment leased from Deal leasing
Dr Right of use asset 405,541.20
Cr Lease liability 405,541.20
the right of use asset = PV of lease payments = $60,000 x 6.75902 (PV annuity due, 10%, 10 periods) = $405,541.20
January 1, 2021, first lease payment
Dr Lease liability 60,000
Cr Cash 60,000
December 31, 2021, depreciation expense on leased asset
Dr Depreciation expense 40,554.12
Cr Accumulated depreciation 40,554.12
depreciation expense = $405,541.20 / 10 = $40,554.12
December 31, 2021, interest expense on asset lease
Dr Interest expense 34,554.12
Cr Interest payable 34,554.12
interest expense = ($405,541.20 - $60,000) x 10% = $34,554.12
Related Questions
Ballou Corporation declared a cash dividend on December 13, 2018, payable on January 10, 2019. By mistake, the company failed to make a journal entry in December 2018. The effect of this error on the financial statements as of December 31, 2018 were:_____.
a. retained earnings was overstated and liabilities were understated.
b. retained earnings was overstated and cash were understated.
c. retained earnings and liabilities were both understated.
d. retained earnings and liabilities were both overstated.
Answers
Answer: a. retained earnings was overstated and liabilities were understated.
Explanation:
Dividends are paid from the Retained Earnings so when a company announces a dividend, that dividend is to be deducted from the Retained earnings. As this was not done, the Retained earnings at year end are overstated.
As the dividends are not paid immediately, they become liabilities. With the relevant entries not made, the dividends were not recorded as liabilities which makes liabilities understated.
The Hifalutin Co. has perpetual EBIT of $3,000. It has no debt in its capital structure, and its cost of equity is 15%. The corporate tax rate is 40%. There are 300 shares outstanding. Hifalutin has announced that it will borrow $3,750 in perpetual debt at 8% and use the proceeds to buy up stock. How many shares will be purchased
Answers
Answer:
The right answer is "56 shares".
Explanation:
According to the question,
Earning per share is:
= [tex]\frac{3000}{300}[/tex]
= $[tex]10[/tex]
PE ratio will be:
= [tex]\frac{1}{ke}[/tex]
= [tex]\frac{1}{15}[/tex]
= [tex]6.67[/tex]
Market price at every share will be:
= [tex]PE \ ratio\times EPS[/tex]
= [tex]6.67\times 10[/tex]
= [tex]66.7 \ Per \ share[/tex] ($)
Now,
The number of purchased shares will be:
= [tex]\frac{borrow}{market \ price \ per \ share}[/tex]
= [tex]\frac{3750}{66.7}[/tex]
= [tex]56.22[/tex]
i.e.,
= [tex]56 \ shares[/tex]
Match each trade organization or agreement with its description.
a. Oversees trade agreements among over 150 member nations and arbitrates trade disagreements among member countries.
b. Created a free-trade zone consisting of the United States, Canada, and Mexico with the purpose of eliminating trade barriers between these countries.
c. An agreement between over 25 nations, which abolished tariffs among member countries and standardized policies on agriculture, transportation, and business practices.
1. World Trade Organization
2. North American Free Trade Agreement
3. The European Union
Answers
Answer:
1. World Trade Organization
2. North American Free Trade Agreement
3. The European Union
Explanation:
a. World Trade Organization (WTO): Oversees trade agreements among over 150 member nations and arbitrates trade disagreements among member countries. The world trade organization (WTO) is an intergovernmental organization that set rules, policies and regulates global trade across the world. It was established officially on the 1st of January, 1995.
b. North American Free Trade Agreement (NAFTA): Created a free-trade zone consisting of the United States, Canada, and Mexico with the purpose of eliminating trade barriers between these countries. It officially became effective on the 1st of January, 1994.
c. The European Union (EU): An agreement between over 25 nations, which abolished tariffs among member countries and standardized policies on agriculture, transportation, and business practices. It was established officially on the 1st of November, 1993. Some of its member countries are Sweden, Italy, Germany, Portugal, Croatia, Russia, France, Spain, Netherlands etc.
Sara purchased a life insurance policy as an investment from her neighbor, Angela. Angela, the original policy holder had paid premiums of $12,000 before the sale. Sara paid Angela $16,500 to acquire the life insurance policy. Sara made additional payments of $5,000. When Angela died, Sara collected $50,000. How much of the policy proceeds is taxable to Sara
Answers
Answer:
$16,500
Explanation:
She invested = $12,000
Total money spent to acquire the policy = ($16,500 + $5000) = $21,500
Total money invested on policy = $21500 + $12000
Total money invested on policy = $33500
Money that sara got after angela died = $50,000
Therefore, the taxable proceed will be = $50,000 - $33,500 = $16,500
Example 1: Alex began putting money in his 401(k) in his early 20s; consequently, he will have financial security when he retires.
Example 2: Louise is the most qualified candidate for the position; therefore, we should hire her.
Identify the correctly written compound sentences. Check all that apply.
a. All e-mail, even once deleted, is retrievable and, therefore, you should avoid sending sensitive information in an e-mail.
b. E-mail facilitates collaboration between people in remote locations; however, when collaboration requires the exchange of large data files, it is often easier to use web-based collaboration software.
c. Many people prefer e-mail over phone conversations, they leave a written record.
d. E-mail can be an efficient way to communicate, and it makes communicating across time zones much easier.
Answers
Answer:
b. E-mail facilitates collaboration between people in remote locations; however, when collaboration requires the exchange of large data files, it is often easier to use web-based collaboration software.
d. E-mail can be an efficient way to communicate, and it makes communicating across time zones much easier.
Explanation
Sentence B is correct because it employs the use of a semicolon to separate two independent clauses. The use of the conjunction, however, helps to separate two sentences that have opposite connotations.
Sentence D is correct because the conjunction, and, was used appropriately to add a second thought to the sentence. The comma was also used correctly as it spliced the sentence and was immediately followed by the conjunction, and.
The owner of a greenhouse and nursery is considering whether to spend $6,000 to acquire the licensing rights to grow a new variety of rosebush, which she could then sell for $6 each. Per-unit variable cost would be $3. How many rosebushes would she have to produce and sell in order to break even
Answers
Answer:
Break-even point in units= 2,000
Explanation:
Giving the following information:
Fixed costs= $6,000
Selling price= $6 each
Unitary variable cost= $3
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 6,000 / 3
Break-even point in units= 2,000
The nation of Textilia does not allow imports of clothing. In its equilibrium without trade, a T-shirt costs $24, and the equilibrium quantity is 4 million T-shirts. One day, after reading Adam Smith's The Wealth of Nations while on vacation, the president decides to open the Textilian market to international trade. The market price of a T-shirt falls to the world price of $16. The number of T-shirts consumed in Textilia rises to 8 million, while the number of T-shirts produced declines to 2 million.
a. Illustrate the situation just described in a graph. Your graph should show all the numbers.
b. Calculate the change in consumer surplus, producer surplus, and total surplus that results from opening up trade. (Hint: Recall that the area of a triangle is1/2×base×height
Answers
Answer:
a) attached graph
b) triangle S represents the change in supplier surplus = 1/2 x -2,000,000 shirts x $8 = -$8,000,000
triangle C represents the change in consumer surplus = 1/2 x 4,000,000 shirts x ($8) = $16,000,000
Casino Inc. expects to pay a dividend of $6 per share at the end of year 1 (Div1) and these dividends are expected to grow at a constant rate of 6 percent per year forever. If the required rate of return on the stock is 20 percent, what is the current value of the stock today?
Answers
Answer:
The current value of the stock today is $42.90
Explanation:
P1 = $6 / 0.20 - 0.06
P1 = $6 / 0.14
P1 = $42.8571
P1 = $42.90
The following pension-related data pertain to Metro Recreation's noncontributory, defined benefit pension plan for 2018:
Projected benefit obligation $5,800 $6,080
Accumulated benefit obligation 3,800 4,120
Plan assets (fair value) 7,080 7,525
Interest (discount) rate, 8%
Expected return on plan assets, 10%
Prior service cost−AOCI (from Dec. 31, 2017, amendment) 1,010
Net loss−AOCI 728
Average remaining service life: 10 years
Gain due to changes in actuarial assumptions 72
Contributions to pension fund (end of year) 510
Pension benefits paid (end of year) 465
Required:
Prepare a pension spreadsheet that shows the relationships among the various pension balances, shows the changes in those balances, and computes pension expense for 2018.
Answers
Answer:
Please see attached.
Explanation:
Prepare a pension spreadsheet that shows the relationship among the various pension balances, show the changes in those balances , and compute pension expense for 2018
Please see detailed solution to the above question.
Suppose that, in a competitive market without government regulations, the equilibrium price of milk is $2.50 per gallon, and employees at grocery stores earn $21.50 per hour. Indicate the following whether each of the statements is an example of a price ceiling or a price floor and whether it results in a shortage or a surplus or has no effect on the price and quantity that prevail in the market.
a. There are many teenagers who would like to work at grocery stores, but the minimum-wage law sets the hourly wage at $25.00.
b. The government has instituted a legal minimum price of $2.30 per gallon for milk.
c. The government prohibits grocery stores from selling milk for more than $2.30 per gallon.
Answers
Explanation:
at price ceiling we have price set at a maximum level. it cannot be raised beyond this level. At binding price ceiling, price would be set to be lower than what is the equilibrium price level. a non binding price ceiling is set to be higher than equilibrium level.
At price floor, price is set to a particular minimum level. It cannot fall lower than this. At binding price floor, price is higher than equilibrium price' at non binding price floor, it is set to be lower than equilibrium price level.
this expalnation should help us to answer this question.
(a) Many teenagers would like to work but minimum wage is set at 25.00 we have Price floor, Binding
(b) Government instituted legal minimum price of a gallon of milk at $2.30 we have Price floor, Non-binding
(c) if the Government prohibits from selling milk for more than $2.30 per gallon then we have Price ceiling, Binding
Jeremy wants to avoid conflict with his new coworkers. He should
Spread gossip with them
Treat them all with respect
Talk to the most popular people
d Buy them expensive gifts
Answers
Answer:
B
Explanation:
Edge 2020
Jeremy wants to avoid conflict with his new coworkers. He should Treat them all with respect. Hence, option B is correct.
What is coworkers?The persons who work at the same job as you are often considered to be your coworkers. Yet, the term "coworker" is most typically used to describe a fellow employee with whom you frequently interact because of your shared position or level of power or responsibility.
Today, coworker is more frequently used when referring to individuals who share a workspace or tasks, whereas colleague is more frequently used when referring to individuals who work in the same field but not for the same organization.
The simplest response to the debate over the terms "coworker" and "coworker" is that both are acceptable nouns to refer to someone who works beside you.
Thus, option B is correct.
For more information about coworkers, click here:
https://brainly.com/question/29830990
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Brief Exercise 14-08 Ziegler Corporation reports net income of $380,000 and a weighted-average of 200,000 shares of common stock outstanding for the year. Compute the earnings per share of common stock.
Answers
Answer:
$1.9
Explanation:
The computation of the earning per share is shown below:
Earning per share is
= Net income ÷ Weighted number of oustanding shares
= $380,000 ÷ 200,000 shares
= $1.9
By simply divide the net income from the Weighted number of oustanding shares, the earning per share could be determined
Hence, the earning per share is $1.9
Smithson Company uses a job-order costing system and has two manufacturing departments— Molding and Fabrication. The company provided the following estimates at the beginning of the year:
Molding Fabrication Total
Machine-hours 20,000 30,000 50,000
Fixed manufacturing
overhead costs $800,000 $300,000 $1,100,000
Variable manufacturing
overhead per machine-hour $5.00 $5.00
During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-75 and Job C-100. It provided the following information related to those two jobs:
Job D-75: Molding Fabrication Total
Direct materials cost $375,000 $325,000 $700,000
Direct labor cost $200,000 $160,000 $360,000
Machine-hours 15,000 5,000 20,000
Job C-200: Molding Fabrication Total
Direct materials cost $300,000 $250,000 $550,000
Direct labor cost $175,000 $225,000 $400,000
Machine-hours 6,000 24,000 30,000
Assume Delph uses a plantwide overhead rate based on machine-hours.
Required:
1-A. Compute the predetermined plantwide overhead rate.
1-B. Compute the total manufacturing costs assigned to Job D-70 and Job C-200.
1-C. If Delph establishes bid prices that are 150% of total manufacturing costs, what bid price would it have established for Job D-70 and Job C-200?
1-D. What is Delph's cost of goods sold for the year?
Assume Delph uses departmental overhead rates based on machine-hours.
2-A. Compute the predetermined departmental overhead rates.
2-B. Compute the total manufacturing costs assigned to Job D-70 and Job C-200.
2-C. If Delph establishes bid prices that are 150% of total manufacturing costs, what bid price would it have established for Job D-70 and Job C-200?
2-D. What is Delph's cost of goods sold for the year?
Answers
Answer:
Instructions are below.
Explanation:
1)
a) First, we need to calculate the total estimated overhead:
Total overhead= 1,100,000 + (5*50,000)= 1,350,000
Now, we can determine the overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 1,350,000/50,000
Predetermined manufacturing overhead rate= $27 per machine hour
b)
Job D-75:
Total cost= direct material + direct labor + allocated overhead
Total cost= 700,000 + 360,000 + 27*20,000
Total cost= $1,600,000
Job C-200:
Total cost= 550,000 + 400,000 + 27*30,000
Total cost= $1,760,000
c) Selling price= 150% of manufacturing costs
Job D-75= 1,600,000*1.5= $2,400,000
Job C-200= 1,760,000*1.5= $2,640,000
d) COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 0 + (1,600,000 + 1,760,000) - 0
COGS= $3,360,000
2)
a)
Molding= (800,000/20,000) + 5= $45 per machine hour
Assembly= (300,000/30,000) + 5= $15 per machine hour
b)
Job D-75:
Total cost= 700,000 + 360,000 + 45*20,000
Total cost= $$1,960,000
Job C-200:
Total cost= 550,000 + 400,000 + 15*30,000
Total cost= $1,400,000
c)
Job D-75= 1,960,000*1.5= $2,940,000
Job C-200= 1,400,000*1.5= $2,100,000
d) COGS= 0 + (1,960,000 + 1,400,000) + 0
COGS= $3,360,000
When a famous painting becomes available for sale, it is often known which museum or collector will be the likely winner. Yet, the auctioneer actively woos representatives of other museums that have no chance of winning to attend anyway.
Suppose a piece of art has recently become available for sale and will be auctioned off to the highest bidder, with the winner paying an amount equal to the second highest bid. Assume that most collectors know that Janet places a value of $125,000 on the art piece and that she values this art piece more than any other collector. Suppose that if no one else shows up, Janet simply bids $125,000/2 = $5,000 and wins the piece of art.
The expected price paid by Kenji, with no other bidders present, is $:_________
Suppose the owner Of the artwork manages to recruit another bidder, Manuel, to the auction. Manuel is known to value the art piece at $8,000.
The expected price paid by Kenji, given the presence of the second bidder Manuel, is $:_________
Answers
Please find attached
Answer and Explanation:
1. If there are no other bidders present as from question them we can conclude that Kenji would buy the art piece for $5000. See question
2. If there is a bidder present in the name of Manuel who would bid for $8000 then Kenji would bid at $8000 and win the bid for the art piece. See question. Kenji would bid at price of 2nd highest bidder to win the bid for art piece
Early in the current year, Amazon Co. purchased the Rio Silver Mine at a cost of $30,000,000. The mine was estimated to contain 400,000 tons of ore and to have a residual value of $7,500,000 after mining operations are completed. During the year, 115,000 tons of ore were removed from the mine. At year-end, the book value of the mine is:
Answers
Answer:
$23,531,250
Explanation:
Calculation for the book value of the mine using this formula
Book value =(Cost of purchased-Residual value )/Estimated tons* (Tons of ore-Cost of purchased)
Let plug in the formula
Book value=($30,000,000 - $7,500,000)/400,000
Book value = $56.25
Book value=$56.25*115,000 = $6,468,750;
Book value= $30,000,000 - $6,468,750
Book value= $23,531,250
Therefore the book value of the mine will be $23,531,250
Two methods can be used for producing solar panels for electric power generation. Method 1 will have an initial cost of $550,000, an annual operating cost of $160,000 per year, and $125,000 salvage value after its three-year life. Method 2 will cost $830,000 with an annual operating cost of $120,000. and a $240,000 salvage value after its five-year life. The company has asked you to determine which method is better, but it Wants the analysis done over a three-year planning period. The salvage value of Method 2 will be 35% higher after three years than it is after five years. If the company's minimum attractive rate of return is 10% per year, which method should the company select?
Answers
Answer:
the company should choose method 1
Explanation:
Method 1 Method 2
Initial outlay $550,000 $830,000
operating costs (years 1,2,3) $160,000 $120,000
salvage value $125,000 $324,000
we must determine which alternative has the lowest present value:
method 1 = $550,000 + $160,000/1.1 + $160,000/1.1² + $160,000/1.1³ - $125,000/1.1³ = $550,000 + $145,455 + $132,231 + $120,210 - $93,914 = $853,982
method 2 = $830,000 + $120,000/1.1 + $120,000/1.1² + $120,000/1.1³ - $324,000/1.1³ = $830,000 + $109,091 + $99,174 + $90,158 - $243,426 = $884,996
Masterson, Inc., has 4.1 million shares of common stock outstanding. The current share price is $84, and the book value per share is $11. The company also has two bond issues outstanding. The first bond issue has a face value of $70 million, has a coupon rate of 5.1%, and sells for 98% of par. The second issue has a face value of $50 million, has a coupon rate of 5.60%, and sells for 108% of par. The first issue matures in 20 years, the second in 12 years. The most recent dividend was $3.95 and the dividend growth rate is 5 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 21 percent. What is the company’s WACC?
Answers
Answer:
The answer is "8.37%".
Explanation:
[tex]\text{MV of equity} = \text{equity price} \times \text{number of outstanding shares}[/tex]
[tex]=84 \times 4100000\\\\=344400000[/tex]
[tex]\text{MV of Bond1}=\text{Par value} \times \text{bonds outstanding} \times \text{age of percentage}[/tex]
[tex]=1000 \times 70000 \times 0.98 \\\\=68600000[/tex]
[tex]\text{MV of Bond2}=\text{Par value} \times \text{bonds outstanding} \times \text{age of percentage}[/tex]
[tex]=1000 \times 50000 \times 1.08 \\\\=54000000[/tex]
[tex]\text{MV of firm} = \text{MV of Equity} + \text{MV of Bond1}+ \text{MV of Bond 2}[/tex]
[tex]=344400000+68600000+54000000\\\\=467000000[/tex]
[tex]\text{Weight of equity W(E)} = \frac{\text{MV of Equity}}{\text{MV of firm}}[/tex]
[tex]= \frac{344400000}{467000000}\\\\=0.7375[/tex]
[tex]\text{Weight of debt W(D)}= \frac{\text{MV of Bond}}{\text{MV of firm}}[/tex]
[tex]= \frac{122600000}{467000000}\\\\=0.2625[/tex]
Equity charges
By DDM.
[tex]\text{Price = new dividend} \times \frac{(1 + \text{rate of growth})}{( \text{Equity expense-rate of growth)}}[/tex]
[tex]84 = 3.95 \times \frac{(1+0.05)}{(\text{Cost of equity}- 0.05)}\\\\84 = 3.95 \times \frac{(1.05)}{(\text{Cost of equity} - 0.05)}\\\\84 = \frac{4.1475}{ (\text{Cost of equity} - 0.05)}\\\\\text{Cost of equity} -0.05 = \frac{4.1475}{84}\\\\\text{Cost of equity} -0.05 = 0.049375\\\\\text{Cost of equity} = 0.049375 + 0.05\\\\\text{Cost of equity} = 0.099375 \\\\\text{Cost of equity} \% = 9.9375 \% \ \ \ or \ \ \ 9.94 \% \\\\[/tex]
Debt expenses
Bond1
[tex]K = N \times 2 \\\\[/tex]
[tex]Bond \ Price = \sum [ \frac{\text{(Semi Annual Coupon)}}{(1 + \frac{YTM}{2})^k}] + \frac{Par\ value}{(1 + \frac{YTM}{2})^{N \times 2}}[/tex]
[tex]k=1\\\\K =20 \times 2\\\\980 = \sum [ \frac {(5.1 \times \frac{1000}{200})}{(1 + \frac{YTM}{200})^k}] + \frac{1000}{(1 + \frac{YTM}{200})}^{20 \times 2}\\\\k=1\\\\\ YTM1 = 5.2628923903\\\\Bond2\\[/tex]
[tex]K = N \times 2[/tex]
[tex]Bond \ Price = \sum [ \frac{\text{(Semi Annual Coupon)}}{(1 + \frac{YTM}{2})^k}] + \frac{Par\ value}{(1 + \frac{YTM}{2})^{N \times 2}}[/tex]
[tex]k=1\\\\K =12 \times 2\\\\[/tex]
[tex]1080 =\sum [\frac{(5.6 \times \frac{1000}{200})}{(1 + \frac{YTM}{200})^k}] +\frac{1000}{(1 +\frac{YTM}{200})^{12 \times 2}} \\\\k=1\\\\YTM2 = 4.72\\\\[/tex]
[tex]\text{Company debt costs} = YTM1 times \frac{(MV \ bond1)}{(MV \ bond1+MV \ bond2)}+YTM2 \times \frac{(MV \ bond2)}{(MV \ bond2)}\\\\[/tex]
The cost of the debt for the company:
[tex]= 5.2628923903 \times \frac{(68600000)}{(68600000+54000000)}+4.72 \times \frac{(68600000)}{(68600000+54000000)}\\\\[/tex]
Business debt cost=[tex]5.02 \% \\\\[/tex]
after taxation cost of debt:
[tex]= \text{cost of debt} \times (1- tax \ rate)\\\\= 5.02 \times (1-0.21)\\\\= 3.9658\\\\[/tex]
[tex]WACC= \text{after debt charges} \times W(D)+equity cost \times W(E) \\\\[/tex]
[tex]=3.97 \times 0.2625+9.94 \times 0.7375 \\\\ =8.37 \% \\\\[/tex]
The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 5 years. The bond certificate indicates that the stated coupon rate for this bond is 10.0% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 7.5%, then this bond will trade at ________.
Answers
Answer:
$1,513.30
Explanation:
The Trading price of the Bond is it Present Value (PV) and is calculated as :
Fv = $1000
n = 5 × 2 = 10
pmt = ($1000 × 10.0%) ÷ 2 = $100
p/yr = 2
i = 7.5%
Pv = ?
Using a Financial Calculator, the Price of the Bond (PV) is $1,513.30.
1. Calculate the sales commission per unit sold. If required, round your answers to the nearest dollar. Use rounded answers in subsequent computations.
Answers
Answer: $20
Explanation:
The sales commission is 6% and the selling price per unit is $340.
The Sales commission per unit saved therefore is;
= 340 * 6%
= $20.40
= $20
The Aleutian Company uses departmental overhead rates. The Fabrication Department uses machine hours for an allocation base, and the Assembly Department uses labor hours. What is the Assembly Department overhead rate per labor hour
Answers
Answer:
$4.425 per labor hour
Explanation:
Note: The full question has been attached as picture
Product Rings Labor Hours = 1030 units x 4 labor hours per unit
Product Rings Labor Hours = 4,120 hours
Product Dings Labor Hours = 1810 units x 7 Labor hour per unit
Product Dings Labor Hours = 12,670 hours
Hence, the total Labor Hours = 4,120 hours + 12,670 hours = 16,790 hours
The total Assembly Department Overhead is estimated to be $74,300. Hence, the Assembly Department Overhead rate per labor hour = Total Overhead / Total Labor Hours
Assembly Department Overhead rate = $74,300 / 16,790
Assembly Department Overhead rate = $4.425
Three explorers are getting kidnapped by an evil tribe deep in the jungle, and their life now depends on their ability to correctly answer the following challenge the evil tribe's chief has for them. The explorers are tied to three trees facing each other and are presented with the chief's 5 wives: 3 brunettes, and 2 blondes. The three explorers are now blindfolded, and the chief picks three of his five wives to stand behind the trees the explorers are tied to, one behind each tree. The remaining two wives disappear from view. Then the blindfolds come off, and each explorer is able to see the two wives that are standing behind his two colleagues, but not the one behind himself. Each explorer now has up to 10 minutes time to think, after which each has to correctly answer what hair color the wife has that is standing behind him, or lose his life. When you, as one of the three explorers, gain your sight after the blindfold comes off, you see two brunettes standing behind your two colleagues. And now your life depends on figuring out who is behind you: a blonde or a brunette?
Answers
Answer:
Brunette
Explanation:
Originally there were 3 brunettes and 2 blondes. If once you are able to see, you realize that 2 brunettes are standing behind your friends, that means that behind you there could be one of two blondes or the remaining brunette.
The possibility of the wife behind you being a blonde is 2/3 or 67%, while the chance of her being brunette is only 33%. But this question is not about probability, instead it is about game strategy. I would bet that the wife behind me is a brunette.
Imagine that the two women that you saw were blondes, then you would immediately say brunette. Even if you only saw one blonde wife, your obvious choice would be brunette. This applies to all 3 friends and the chief is gambling against you all 3. He will not give any of you any type of advantage.
Presented below are selected balances for Tucker as of December 31, 2018:
Cash $50,000
Administrative expenses 90,000
Selling expenses 80,000
Accumulated other comprehensive income, beginning 55,000
Net sales 540,000
Cost of goods sold 210,000
Common stock, beginning 75,000
Cash dividends declared 20,000
Unrealized loss on available-for-sale debt securities 7,000
Interest expense 10,000
Cash dividends paid 15,000
Operating income from discontinued operations (before taxes) 30,000
Retained earnings, beginning 90,000
Loss on disposal of discontinued operations (before taxes) 45,000
Effective tax rate 30%
Required:
a. Compute net income for 2020.
b. Prepare an income statement for 2018 assuming 10,000 shares of common stock were outstanding all year.
Answers
Answer:
Tucker`s
Income Statement for the year end December 31, 2018
Net sales 540,000
Cost of goods sold (210,000)
Gross Profit 330,000
Administrative expenses 90,000
Selling expenses 80,000
Unrealized loss on available-for-sale debt securities 7,000
Interest expense 10,000 (187,000)
Net Income before tax from continuing activities 143,000
Income tax expense at 30% (43,900)
Net Income after tax from continuing activities 99,100
Explanation:
Prepare the Income statement for calculation of net income. Income statement consist of Revenues/ Income and Expenses.
Juanita is deciding whether to buy a skirt that she wants, as well as where to buy it. Three stores carry the same skirt, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of
Answers
Answer:
the question is incomplete, so I looked for similar questions that can serve as an example:
local store 15 minutes away and a price of $104 across town 30 minutes away and a price of $88 neighboring city 1 hour away and a price of $63 Juanita makes $42 per hour at her work, and her purchase decision includes the opportunity cost of lost wages.total economic cost:
local store = $104 + [1/4 hours x 2 (round trip) x $42] = $125 across town = $88 + [1/2 hours x 2 (round trip) x $42] = $130 neighboring city = $63 + [1 hour x 2 (round trip) x $42] = $147Juanita should purchase the skirt at her local store because the total economic cost will be lowest = $125
If your numbers are different, just change the numbers of the 3 equations.
Bridgeport Inc. wishes to accumulate $1,092,000 by December 31, 2030, to retire bonds outstanding. The company deposits $168,000 on December 31, 2020, which will earn interest at 10% compounded quarterly, to help in the retirement of this debt. In addition, the company wants to know how much should be deposited at the end of each quarter for 10 years to ensure that $1,092,000 is available at the end of 2030. (The quarterly deposits will also earn at a rate of 10%, compounded quarterly.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
Answers
Answer: $9,479
Explanation:
The number of periods = 10 years * 4 quarters = 40 periods
Interest per quarter = 10%/4 = 2.5%
$168,000 has been deposited. The value of this cash after 10 years is;
= 168,000 ( 1 + 2.5%) ^ 40
= $451,090.72
Out of $1,090,000, the amount remaining is;
= $1,090,000 - 451,090.72
= $638,909.28
They need to deposit an annuity per quarter to get to $638,909.28.
Future Value of Annuity = Annuity * ([1 + I]^N - 1 )/I
638,909.28 = Annuity * [(1+0.025)^40 - 1] /0.025
638,909.28 = Annuity * 67.40255
Annuity = 638,909.28/67.40255
= $9,479
a. What is the total cash outflow for buying and for leasing a motor vehicle with a cash price of $33,000
Answers
Answer:
For buying = $32,640
For leasing = $31,800
Explanation:
The computation is shown below:
For buying
Total cash outflow = Down payment + Loan repayment - Value of vehicle at the end of loan
= $5,600 + (780 × 48) - $10,400
= $32,640
For Leasing
Total cash outflow = Down payment + Loan repayment - Value of vehicle at the end of loan
= $2,000 + (600 × 48) - $1,000
= $31,800
Which of the following best defines a financial intermediary? a claim by a buyer to a future payment by a seller a collection of stocks and bonds issued to investors a financial institution that transforms investor funds into financial assets an asset sold by a company which entitles the buyer to partial ownership
Answers
Answer:
Option C (A financial.......assets) is the correct choice.
Explanation:
A financial intermediary seems to be an entity that serves as an intermediary seen between the listing agent as well as the buyer's transactions. They help convert investment properties, swap properties between producers and consumers, respectively. Therefore, a financial intermediary would be a finance company that converts capital instruments into investment capital.Other decisions are given aren't connected to the results provided. So that is indeed the safest decision.
Costs are transferred from the balance sheet to the income statement as cost of goods sold when ________. Group of answer choices
Answers
Answer: a. finished goods are sold
Explanation:
Finished goods stay in the balance sheet as the Inventory that the company has and it will be reflected at cost.
When the Finished goods are sold however, this cost to make the finished goods will be transferred to the Income statement as Cost of goods sold so that the company will be able to determine its Gross Profit.
g A stock just paid a dividend of $2.59. The dividend is expected to grow at 20.07% for two years and then grow at 4.44% thereafter. The required return on the stock is 11.20%. What is the value of the stock?
Answers
Answer:
52.43
Explanation:
2.59 x (1.2007) = 3.11
Present value = 3.11 / 1.1120 = 2.80
2.59 x (1.2007²) = 3.73
Present value = 3.73 / 1.1120² = 3.02
3.73 (1.0444) / (0.1120 - 0.0444) = 57.63
Present value = 57.63 / 1.1120² = 46.61
Value of the stock = 2.80 + 3.02 + 46.61 = 52.43
Lilla sees a search ad on her mobile phone for a restaurant. A button on the ad allows Jessica to click on the button and call the restaurant. This is a
Answers
Answer: Click-to-call ad
Explanation:
From the question, we are informed that Lilla sees a search ad on her mobile phone for a restaurant and a button on the ad allows Jessica to click on the button and call the restaurant.
It should be noted that the above is a click-to-call ad. They are form of Google Ads that when someone clicks them, it calls the business directly rather than linking to the website of the business. They are important to marketing campaigns.
Which are possible employers in the Financial career cluster? Check ALL that apply.
A. private company
B. government
C. nonprofit organization
D. bank
E. stock market
Answers
The correct option is B and D.
What is the Finance Career Cluster?The Finance Career Cluster prepares students for careers in financial and investment planning, banking, insurance, and business financial management. Finance career opportunities are available in every sector of the economy and require skills in organization, time management, customer service, and communication.
What are the four career pathways in finance?The four career pathways in the finance cluster are banking and related services, business financial management, financial and investment planning, and insurance services.
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