Answer:
None of the above(i.e., all of the above statements are 'True' After the 2 for 1 stock split).
Explanation:
Stock split is a way of increasing total of shares a company's shareholders have while proportionately reducing the share price per unit.In essence , it is about re-denominating the shares of a company.
A 2-1 stock split means for every one share that shareholders possess previously.they now have 2 in place of 1.
In other words,the shareholders now have 2,000 shares in all(2/1*1000)
The par value now=$1*1/2=$0.50
The market price now=$8*1/2=$4
Without mincing words,the last option is the correct answer.
The Bank of Key West is not going to have enough reserves at the end of the business day to meet its reserve requirement of 10%. It currently has two options to borrow money overnight in order to meet the requirement. First, it could borrow money from the Federal Reserve at a rate of 1.15% . Second, it could borrow money from other banks at a rate of 0.15% . What is the federal funds rate, and what is the discount rate
Answer: Federal Fund Rate = 0.15%
Discount rate = 1.15%
Explanation:
The Federal Fund Rate is the rate at which banks can borrow money from other Banks and is listed as 0.15%. This rate is usually lower than the discount rate as is usually suggested by the Federal Open Market Committee.
The Discount rate is the rate at which Banks can borrow from the Fed which is stated to be 1.15%. This rate is set by the Fed and can be used to control interest rates by either reducing or increasing the cost of borrowing for Banks which banks then reciprocate.
The Wood Valley Dairy makes cheese to supply to stores in its area. The dairy can make 454 pounds of cheese per day (355 days per year), and the demand at area stores is 62 pounds per day. Each time the dairy makes cheese, it costs $295 to set up the production process. The annual cost of carrying a pound of cheese in a refrigerated storage area is $1.01. Determine the minimum total annual cost.
Answer:
$245,277
Explanation:
The dairy makes 454 pounds per day of which only 62 pounds is sold, thus the extra pounds of cheese per day are (454-62) = 392.
Now, the dairy operated 355 days a year, hence the annual cost of storage is,
(355 * 392) * $1.01 => $140,552.
Now the setup cost is $295 a day, so the annual would be,
(295 * 355) => $104,725.
Hence the minimum total annual costs will be = 140552+104725 = $245,277.
Hope I made myself clear.
Thanks
At year end, Rebos Company's financial statements showed sales of $820 million, net income of $425 million, total assets of $750 million, total liabilities (including preferred stock) of $735 million, and 1.20 million shares of common stock outstanding. Rebos has been offered $742.50 million to sell their assets. Based on this information, calculate the company's book value per share and liquidation value per share of common stock, respectively.
Answer:
total sales $820 million
net income $425 million
total assets $750 million
total liabilities $735
1.2 million outstanding common stocks
an offer was made to buy their assets at $742.5 million
company's book value per share:
= (total assets - total liabilities) / total number of outstanding common stocks
= ($750,000,000 - $735,000,000) / 1,200,000 = $12.50 per stock
company's liquidation value per share:
= (total offer - total liabilities) / total number of outstanding common stocks
= ($742,500,000 - $735,000,000) / 1,200,000 = $6.25 per stock
A new barcode reading device has an installed cost basis of $21 comma 680 and an estimated service life of ten years. It will have a zero salvage value at that time. The 200% declining balance method is used to depreciate this asset. a. What will the depreciation charge be in year ten? b. What is the book value at the end of year nine? c. What is the gain (or loss) on the disposal of the device if it is sold for $700 after nine years?
Answer:
a. $2,910
b. $2,910
c. $2,210 loss
Explanation:
Note: See the attached excel file to see how the depreciation is calculated.
Since the useful life is 10, the normal depreciation rate is 10%. Therefore, 200% double declining depreciation rate implies 20% rate to be used (i.e. 10% * 200% = 20%).
a. What will the depreciation charge be in year ten?
Since the salvage value at year ten is zero, the depreciation charge in year 10 is $2,910.
b. What is the book value at the end of year nine?
The book value at the end of year nine = $2,910.
c. What is the gain (or loss) on the disposal of the device if it is sold for $700 after nine years
Loss = Sales proceed - book value at the end of year nine = $700 - $2,910 = 2,210 loss
At the beginning of 2019, Robotics Inc. acquired a manufacturing facility for $12.1 million. $9.1 million of the purchase price was allocated to the building. Depreciation for 2019 and 2020 was calculated using the straight-line method, a 20-year useful life, and a $1.1 million residual value. In 2021, the estimates of useful life and residual value were changed to 15 total years and $510,000, respectively. What is depreciation on the building for 2021?
Final answer:
The depreciation on the building for 2021 is $573,333.33.
Explanation:
The depreciation on the building for 2021 can be calculated using the straight-line method. The original useful life of the building was 20 years, and the residual value was $1.1 million. However, in 2021, the estimates were changed to a 15-year useful life and a residual value of $510,000. To calculate the depreciation for 2021, we need to find the annual depreciation expense.
First, we calculate the depreciable cost, which is the initial cost minus the residual value. The initial cost of the building was $9.1 million, so the depreciable cost is $9.1 million - $510,000 = $8.59 million.
Next, we divide the depreciable cost by the new useful life to find the annual depreciation expense: $8.59 million / 15 years = $573,333.33.
Therefore, the depreciation on the building for 2021 is $573,333.33.
The bonds have a par value of $2,000 and semiannual coupons.
Company (Ticker) Coupon Maturity Last Price Last Yield EST $ Vol (000’s)
Xenon, Inc. (XIC) 6.500 Jan 15, 2034 94.293 ? 57,373
Kenny Corp. (KCC) 7.230 Jan 15, 2033 ? 5.36 48,952
Williams Co. (WICO) ? Jan 15, 2040 94.845 7.06 43,813
What price would you expect to pay for the Kenny Corp. bond?
Answer:
$2,365.02
Explanation:
For computing the price we have to applied the Present value formula i.e to be shown in the attachment
Given that,
Future value = 2,000
Rate of interest = 5.36% ÷ 2 = 2.68%
NPER = 14 years × 2 = 28 years
PMT = $2,000 × 7.230% ÷ 2 = $72.3
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the price of the bond is $2,365.02
The 14 years is taken from
= Year 2033 - year 2019
= 14 years
Loger's, a high-end apparel company in Bruslon, an Asian country, cuts back on production as consumers start turning to basic products such as food because of the economic downturn in the country. The company also lays off many of its employees to further cut down expenses. In the context of the business cycle, Bruslon is most likely going through a period of _____.
Answer:
Contraction
Explanation:
The business cycle refers to the fluctuations that happen in an economic activity over time. This cycle has 4 stages that are:
-Expansion is when the economy grows and employment is higher.
-Peak is a transition between expansion and contraction and it is a point in which the economy reaches its highest output.
-Contraction is a stage in which growth stops and unemploymetnt rises.
-Trough is a stage in which the economy gets to its lowest point before a rise.
According to this, the answer is that in the context of the business cycle, Bruslon is most likely going through a period of contraction because there is an economic downturn that forced Loger's to lay off many employees.
Dimitrov Corporation, a company that produces and sells a single product, has provided its contribution format income statement for July.
Sales (6,600 units) $429,000
Variable expenses 297,000
Contribution margin 132,000
Fixed expenses 103,500
Net operating income $28,500
Required:
a) If the company sells 6,500 units, its net operating income should be closest to __________.
Answer:
$27,000
Explanation:
Computation of the given data are as follows:
Net operating income = Contribution margin per unit × Reqd. Sales Unit - Fixed expenses
Where, Contribution margin per unit = Contribution margin ÷ Sales Unit
= $132,000 ÷ 6,600
= $20
So, by putting the value in the formula, we get
= $20 × 6,500 - $103,500
= $130,000 - $103,000
= $27,000
Consider a Caribbean cruise route served by two cruise lines, Carnival and Royal Caribbean. Both lines must choose whether to charge a high price ($320) or a low price ($300) to vacationers. These price strategies with corresponding profits are illustrated in the payoff matrix to the right. Carnival's profits are in red and Royal Caribbean's are in blue. Suppose the cruise lines decide to collude. At which outcome are joint profits maximized?
Answer:
Consider a Caribbean cruise route served by two cruise lines, Carnival and Royal Caribbean. Both lines must choose whether to charge a high price ($320) or a low price ($300) to vacationers. These price strategies with corresponding profits are illustrated in the payoff matrix to the right. Carnival's profits are in red and Royal Caribbean's are in blue. Suppose the cruise lines decide to collude. At which outcome are joint profits maximized?
Joint profits are maximized when Carnival picks $320 and Royal Caribbean picks $320.
Explanation:
When Carnival picks $320 and Royal Caribbean picks $320, then joint profits are maximized.
Nash equilibrium would exist only when Royal chooses $300 and the carnival chooses $300.
However, if both Carnival and Royal Caribbean charge a lower price, both of them can earn a higher profit.
Carnival and Royal Caribbean can collude to set prices and act like a monopoly, which involves reducing output and raising prices to maximize profits.
Explanation:In the scenario presented, Carnival and Royal Caribbean have the option to collude and set their prices to maximize joint profits. Collusion would involve agreeing to charge the same price to eliminate competition and act like a monopoly.
When firms collude in such a manner, they tend to reduce output and increase prices to maximize profits, just like a monopolist would. In the context of a payoff matrix, colluding to charge a higher price would typically result in higher joint profits when compared to both firms charging a low price.
For a perfectly competitive firm, the goal is to maximize profit by finding the level of output where total revenue exceeds total costs by the greatest amount, as demonstrated by the provided example of a raspberry farm with revenue and costs data.
Explain how the recognition that macroeconomic policymaking is an inexact science affects your recommended policy response to the following situations: a. Your estimate of the natural rate of unemployment is 5 percent, and the actual unemployment rate is 5.5 percent. If you recognize macroeconomic policymaking as an inexact science, you would interpret that the difference is: serious enough to require a policy change. not a measurement error, but not serious enough to warrant a policy change. due to a difference in unemployment expectations. due to a measurement error. b. Your estimate of the natural rate of unemployment is 5 percent, and the actual unemployment rate is 8 percent. Your understanding will be that: it is a measurement error. unemployment has risen above the natural rate. macroeconomics is an inexact science. people's expectations are unemployment are very high.
Answer:
a. If you estimated that the natural rate of state is 5%, and therefore the actual proportion is 5.5%, therefore to understand the economic science policy making is associate approximate knowledge which would possibly mean that you might interpret the distinction as existence of an error in the results and thus it is not justify any change in policy.
b. If you estimated that the natural rate of state is 5%, and therefore the actual proportion is 8%, thus it is given the inaccuracy of economic science policy making, you're doubtless to consider that state has up considerably higher than the expected level. Conversely, you'd not acumen extended it'd hold policy to have an effect on a modification within the proportion.
Heller Enterprises reports the following information. 2017 2016 Cash $10,800 $10,600 Operating assets $18,500 $18,800 Operating liabilities $14,100 $14,800 Net operating profit after tax $10,200 $10,300 Weighted average cost of capital 6.0% 6.0% What is the company's residual operating income (ROPI) for 2017? A. $9,072 B. $6,200 C. $9,312 D. $9,960 E. None of the above
Answer:
The company's residual operating income (ROPI) for 2017 is $9,960. The right answer is D.
Explanation:
In order to calculate the company's residual operating income (ROPI) for 2017 we would have to use the following formula:
Company's Residual operating Income = NOPAT - [ WACC x NOA at beginning ]
Where, NOPAT = Net operating profit after tax for 2017 = $10,200, WACC = weighted average cost of capital = 6%
NOA at beginning = Net operating assets at beginning of the year (NOA of 2016 closing) = $18,800 - $14,800 = $4000
Therefore, Company's residual operating income = $10,200 - [ 6% x $4000 ] = $9,960
In October, Pine Company reports 20,700 actual direct labor hours, and it incurs $124,200 of manufacturing overhead costs. Standard hours allowed for the work done is 20,700 hours. The predetermined overhead rate is $6.15 per direct labor hour. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $4.45 variable per direct labor hour and $54,000 fixed. Compute the overhead volume variance. Normal capacity was 25,000 direct labor hours.
Answer:
$18,810 Unfavorable
Explanation:
The computation of the overhead volume variance is shown below:-
Overhead volume variance = Budgeted Overheads - Recovered Overheads
= (20,700 × $4.45 + $54,000) - (20,700 × $6.15)
= $92,115 + $54,000) - (20,700 × $6.15)
= $146,115 - $127,305
= $18,810 Unfavorable
Here, the budgeted overhead is more than recovered overhead so it becomes unfavorable.
Rachel's Designs has 1,800 shares of 5%, $50 par value cumulative preferred stock issued at the beginning of 2019. All remaining shares are common stock. Due to cash flow difficulties, the company was not able to pay dividends in 2019 or 2020. The company plans to pay total dividends of $15,000 in 2021. How much of the $15,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders?
Answer:
Out of $15,000, the $13500 will be paid to preference stockholders and the remaining $1500 will be paid to equity stockholders
Explanation:
Given the information:
Rachel's Designs has 1,800 shares of 5%, $50 par value
The company plans to pay total dividends of $15,000 in 2021
For computing the preferred dividend, first we have to find out the yearly dividend which is shown below:
= Number of shares × par value per share × dividend rate
= 1,800*$50*5%
= $4,500
Since in 2019 and 2020 the dividend is not paid
The dividend arrears for 2019 and 2020 would be:
= $4,500 + $4,500
= $9000
=> The total dividend is:
= $4,500 + $9000
= $13,500
So, for the common stockholder, it is
= $15,000 - $13,500
= $1500
Hence, out of $15,000, the $13500 will be paid to preference stockholders and the remaining $1500 will be paid to equity stockholders
Variable Input Fixed Input Output Marginal Physical Product of Variable Input Total Fixed Cost Total Variable Cost Marginal Cost (units) (units) (units) (units) (dollars) (dollars) (dollars) 0 1 0 $500 $0 1 1 10 (A) $500 $200 (F) 2 1 25 (B) $500 $400 (G) 3 1 45 (C) $500 $600 (H) 4 1 60 (D) $500 $800 (I) 5 1 70 (E) $500 $1000 (J) Refer to Exhibit 21-3. What is the average total cost of producing 60 units of output
Answer:
$21.67
Explanation:
Exhibit 21-3 is attached with the answer .Please find it.
Total cost of production includes the fixed cost and variable cost. Fixed Cost remains constant as $500 in the exhibit, but the variable cost changes with each production level.
Cost of producing 60 units
Variable cost = $800
Fixed cost = $500
Total cost = $800+500 = $1,300
Product cost per unit = Total cost / numbers of unit = $1,300 / 60 = $21.67
Baker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $85,120 and 2,800 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $86,870 and actual direct labor-hours were 2,700. The pre-determined overhead rate for the year was closest to:_____.a. $31.60.b. $33.62.c. $30.36.d. $32.30.
Answer:
Overhead rate is $30.4
So option (c) is correct option
Explanation:
We have given total estimated overhead = $85120
Estimated direct labor hours = 2800
Actual manufacturing overhead for the year = $86870
Actual labor hour = 2700
We have to find overhead rate for the year
Overhead rate is equal to the ratio of estimated overhead to estimated labor hour
Therefore overhead rate [tex]=\frac{85120}{2800}=30.4[/tex]$
So option (c) is correct
Doug Turner Food Processors wishes to introduce a new brand of dog biscuits composed of chicken- and liver-flavored biscuits that meet certain nutritional requirements. The liver-flavored biscuits contain 1 unit of nutrient A and 2 units of nutrient B; the chicken-flavored biscuits contain 1 unit of nutrient A and 4 units of nutrient B. According to federal requirements, there must be at least 40 units of nutrient A and 60 units of nutrient B in a package of the new mix. In addition, the company has decided that there can be no more than 15 liver-flavored biscuits in a package. If it costs 1¢ to make 1 liver-flavored biscuit and 2¢ to make 1 chicken-flavored, what is the optimal product mix for a package of the biscuits to minimize the
Answer: opt value = 65
Explanation:
This is quite easy to solve.
we will take a step by step process to solving this problem.
attached below are images showing the sheet for the formula used to run the program as well as the output(answer).
Let us begin;
we have from the problem that the variables Given are;
Y which is the number of chicken flavored biscuits in a package
and X represent the number of chicken flavored biscuits in a package7
Taking LLP as follows:
Min Z = 1X + 2Y where Z rep the Objective Minimum Function
subject to
1X + 1Y >= 40
2X + 4Y >= 60
1X + 0Y <= 15
X, Y >= 0
(i). attached is the excel sheet housing the formula
(ii). attached is the sheet generating the values
(iii). attached is the Excel solver
(iv). attached is final sheet showing the results
We have that the No of Liver Flavored biscuits and No of Chicken Flavored biscuits is 15 & 25
From the attached result, we have that the optimum solution value is 65
To find the optimal product mix, set up a linear programming problem to minimize cost while meeting nutritional requirements and constraints.
Explanation:To find the optimal product mix for the package of dog biscuits, we can set up a linear programming problem. Let's assume the number of liver-flavored biscuits in the package is represented by L and the number of chicken-flavored biscuits is represented by C.
The objective function to minimize the cost would be 0.01L + 0.02C since it costs 1¢ to make 1 liver-flavored biscuit and 2¢ to make 1 chicken-flavored biscuit.
The constraints would be:
1L + 1C ≥ 40 (nutrient A requirement)2L + 4C ≥ 60 (nutrient B requirement)L ≤ 15 (limit on liver-flavored biscuits)By solving this linear programming problem, we can find the values of L and C that minimize the cost while meeting the nutritional requirements and constraints.
The Card Shoppe needs to maintain 18 percent of its sales in net working capital. Currently, the store is considering a four-year project that will increase sales from its current level of $279,000 to $308,000 the first year and to $314,000 a year for the following three years of the project. What amount should be included in the project analysis for net working capital in Year 4 of the project?
Answer:
$56,520
Explanation:
As per given data
Year Sales Working Capital 18%
0 $279,000 ($50,220)
1 $308,000 ($5,220)
2 $314,000 ($1,080)
3 $314,000 $0
4 $314,000 $56,520
As the sales value of year 2, 3 and 4 are same, as capital is adjusted in year 2 and company has equal working capital required in year 3, years 4 is the last year of the project so, working capital will be recovered from the project
Net Working capital will be reimbursed at the end of the project. The accumulated value of investment in working capital will be recorded as cash inflow in the analysis.
What benefits do you see to an organization where there are no job titles, no managers, and no hierarchy?
Answer:
Holocratic Organization have no structure this is not possible to manage the work if your business is very big(organization)
A boundaryless organization fosters higher job satisfaction, personal growth, and a sense of ownership for employees, but can also lead to role ambiguity, limited advancement opportunities, and potentially less job security.
Advantages of a Boundaryless Organization
One of the advantages of being employed by a boundaryless organization is the promotion of self-managed teams. By reducing hierarchy, team members can complete tasks and solve problems independently, leading to higher job satisfaction, increased self-esteem, and significant opportunities for personal growth. The organizational benefits include increased productivity, flexibility, and lower turnover rates. For lower-level employees, this structure can provide a stronger sense of ownership over their work. Additionally, the absence of hierarchy fosters a collegial environment where even entry-level employees can provide feedback to directors.
Disadvantages of a Boundaryless Organization
However, a boundaryless organization might not be without its drawbacks. Without the traditional structure of a hierarchy, employees might experience role ambiguity and a lack of guidance. Opportunities for advancement may also be limited due to fewer management layers. Although such organizational structures may satisfy an employee's self-actualization needs, they might not provide the same level of job security that comes with working in more traditional, hierarchically structured companies.
Kamal reproduces Lorena’s copyrighted work "Musica" without paying royalties. Kamal is most likely excepted from liability for copyright infringement under the "fair use" doctrine if a. Kamal copies the entire work. b. Kamal’s use has no effect on the market for Lorena’s work. c. Kamal distributes the copies without charge to the public. d. Kamal’s use is for a commercial purpose.
Answer:
Option B
Explanation:
In simple words, Fair use refers to the one of the patent protections designed to align the rights of copyright owners with that of the public's best interest in the broader dissemination and use of artistic works by enabling such restricted uses that would otherwise be deemed infringing complaints as a protection against copyright violation.
Thus, from the above we can conclude that the correct option is B .
Disney and Paramount are both releasing an animated movie at the same time. Each company is fairly well known, and they are both deciding between pursuing two advertising strategies. Each firm knows that its profits will be affected by its own decision and the decision of the competing firm. The payoff matrix contains the estimated profits for both companies for all possible strategies. Paramount's profits are in the lower (green) triangle of each cell and Disney's profits are in the upper (blue) triangle of each cell. Profits (payoffs) are in millions of dollars. Disney Strategy 1 Strategy 2 Paramount Strategy 1 A $75 $75 B $25 $300 Strategy 2 C $300 $25 D $150 $150 What is Disney's dominant strategy? strategy 1 strategy 2 Disney does not have a dominant strategy. What is the Nash equilibrium in this game? B There is not a Nash equilibrium. A C D
Answer:
we can prepare a matrix to determine the best strategy:
Disney
strategy 1 strategy 2
$75 / $25 /
strategy 1 $75 $300
Paramount
strategy 2 $300 / $150 /
$25 $150
What is Disney's dominant strategy?
Disney's dominant strategy is strategy 1 with an expected value = $75 + $300 = $375. Strategy 2's expected value is only $175.
Paramount's dominant strategy is strategy 1 with an expected value = $75 + $300 = $375. Strategy 2's expected value is only $175.
What is the Nash equilibrium in this game?
There is a Nash equilibrium because both players' (Disney and Paramount) dominant strategy is Strategy 1.
Disney does not have a dominant strategy as their profit varies depending on Paramount's decision. The Nash Equilibriums are where both firms use Strategy 1 (option 'A') and where both firms use Strategy 2 (option 'D').
Explanation:To determine Disney's dominant strategy, we analyze the given payoff matrix. If Paramount chooses Strategy 1, Disney's profit would be $75 million with Strategy 1 and $300 million with Strategy 2. If Paramount uses Strategy 2, Disney makes $150 million with Strategy 1 and $25 million with Strategy 2. Thus, there is no single strategy for Disney that always gives them a higher profit regardless of Paramount's choice. Therefore, Disney does not have a dominant strategy.
To find the Nash Equilibrium, we need to look for a situation where neither of the firms would want to unilaterally switch their strategy, given that the strategy of the other firm stays the same. From the given payoff matrix, using Strategy 1 gives Paramount $75 million if Disney uses Strategy 1, and $300 million if Disney uses Strategy 2. Using Strategy 2 gives Paramount $25 million if Disney uses Strategy 1, and $150 million if Disney uses Strategy 2. From Disney's perspective, we have already discussed. Given these payoffs, we see that the situation where both firms use Strategy 1 (i.e., option 'A') and where both firms use Strategy 2 (i.e., option 'D') are Nash Equilibriums, since neither firm would want to switch strategies unilaterally in those cases.
Learn more about Dominant Strategy and Nash Equilibrium here:https://brainly.com/question/31326030
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Department S had no work in process at the beginning of the period. It added 12,200 units of direct materials during the period at a cost of $97,600. During the period, 9,200 units were completed, and 3,000 units were 25% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $73,630, and factory overhead was $17,910. The total cost of units completed during the period was
Answer:
Cost of completed units = $158,240
Explanation:
Cost of completed units = Cost per equivalent unit × no of units
Equivalent unit = Degree of completion × units of work
Equivalent units of material
( 9200× 100%) + (3000×100%) = 12,200 unit
Cost per equivalent unit of material = $97,600/12,200 units= $8
Equivalent units of labour and overhead
(9200× 100%) + (3000× 25%) = 750
Cost per equivalent unit of labour and overhead
=( 73,630+17910)/9950 =$9.2
Cost of completed units
= $(9.2+8)× 9,200 = 158,240
Cost of completed units = $158,240
At December 31, 2020 Marigold Corp. had 305000 shares of common stock and 9600 shares of 6%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2020 or 2021. On January 30, 2022, prior to the issuance of its financial statements for the year ended December 31, 2021, Marigold declared a 100% stock dividend on its common stock. Net income for 2021 was $1135000. In its 2021 financial statements, Marigold's 2021 earnings per common share should be
Answer:
Marigold Corp.
2021 Earnings per common share:
Common Stock:
Dec 31, 2020 Balance = 305,000 shares
Jan 30, 2022 Stock dividend = 305,000 shares
Balance on Jan 30 = 610,000 shares
Net Income for 2021 = $1,135,000
6% Cumulative preferred dividend for 2020 & 2021 = $115,200 ($57,600 x2)
2021 Earnings per share = ($1,135,000 - $115,200)/305,000 = $3.34
Explanation:
Earnings per share is the net income dividend by the number of outstanding stock.
As at December 31, 2021, the common stock outstanding equals 305,000 shares.
The preferred stock is cumulative. This means that whether dividend is declared or not in a year, it continues to be accumulated year on year until when the company is able to pay.
Since 2020 dividend for preferred stock was not declared, in 2021 when the common stock dividend was declared, the previous year's and the present would be accumulated and deducted from earnings to arrive at earnings for common stockholders.
Answer:
Marigold's 2021 earnings per common share should be $1.77
Explanation:
Given:
Net income for 2021: $1,135,000
Num. of common stck shares: 305,000
Cumulative preferred stock outstanding: 9600 shares of 6%, $100 par value.
The dividend to be accrued on preference shares=
9,600 * $100 * 6% = $57,600
Share outstanding will be:
305,000 * 2 = 610,000
Earnings available to common share-holders =
(Net income-Preferred dividend) =
$1,135,000 - $57,600 = $1,077,400
Earnings per share is calculated as:
$1,077,400 / 610,000 = $1.77
Therefore, Marigold's 2021 earnings per common share should be $1.77
No variable overhead is incurred or budgeted. The expected cash balance at the end of the current year is $3,500. Disbursements other than for direct materials and direct labor are expected to occur in the quarter incurred. Fixed overhead expenses include $1,000 for depreciation. What is the budgeted excess or (deficiency) in cash flows at the end of the first quarter
Answer:
$23,000
Explanation:
The computation of the budgeted excess or (deficiency) in cash flows is shown below:-
Budgeted excess or (deficiency) in cash flows at the end of the first quarter = Cash Inflows - Cash Outflows
=$60,000 - $25,000 - ($8,000 - $1,000) - $5,000
= $60,000 - $25,000 - $7,000 - $5,000
= $23,000
Therefore for computing the Budgeted excess or (deficiency) in cash flows at the end of the first quarter we simply applied the above formula.
A Dutch auction underwriting is best described as an underwriting in which: Select one: a. the offering price varies with each investor paying his or her bid amount. b. investors determine the amount of the spread via competitive bidding. c. the number of shares sold is determined by a public auction. d. the underwriters are committed to purchase any unsold shares. e. the offer price is set based on competitive bidding by investors.
Answer: the offer price is set based on competitive bidding by investors.
Explanation: A Dutch auction is defined as a type of reverse auction that starts at a high price that is gradually reduced by the auctioneer until someone is willing to buy or when it reaches it predetermined price.
Here, the price is determined based on competitive bidding by investors.
Answer:
e. The offer price is set based on competitive bidding by investors.
Explanation:
A Dutch Auction Underwriting is a form of public auction wherein, several investors make their bidding and then, the highest price is the amount at which the offering would be sold. This is a form of competitive bidding among the investors. The auctioneers wait for all the investors to make their bidding before selecting the highest.
Sometimes also in Dutch Auction, the price tag could be reduced, till there is a buyer for it. Once the going price is good enough by the bidder, the auction can then come to a successful end. Investment bankers are the underwriters in a public offering like this and they determine the prices of the items being sold.
A corporation is considering expanding operations to meet growing demand. With the capital expansion, the current accounts are expected to change. Management expects cash to increase by $20,000, accounts receivable by $40,000, and inventories by $60,000. At the same time accounts payable will increase by $50,000, accruals by $10,000, and longdashterm debt by $100,000. The change in net working capital is ________.
Answer:
$60,000
Explanation:
The computation of change in net working capital is shown below:-
Change in net working capital = Increase in cash + Increase in accounts receivables + Increase in inventories - Increase in payable - Increase in accruals
= $20,000 + $40,000 + $60,000 - $50,000 - $10,000
= $120,000 - $60,000
= $60,000
Therefore for computing the change in net working capital we simply applied the above formula.
Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but currently produces and sells 75,000 seats per year. The following information relates to current production of seats: Sale price per unit $420 Variable costs per unit: Manufacturing $260 Marketing and administrative $40 Total fixed costs: Manufacturing $770,000 Marketing and administrative $200,000 If a special sales order is accepted for 4000 seats at a price of $375 per unit, fixed costs remain unchanged, and no variable marketing and administrative costs will be incurred for this order, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.)
Answer:
$460,000 increment in the operating income
Explanation:
Production = 75000
Unit sales price = $420
Sales revenue 31,500,000
Cost of sales
Manufacturing (260*75000) 19,500,000
Gross profit 12,000,000
Marketing and admin (40*75000) 3,000,000
Manufacturing 770000
Marketing * Admin 200000
Operating income 8030000
Revenue for special order = 375*4000 = 1,500,000
Manufacturing cost =4000*260 1,040,000
Gross profit 460,000
There will be an increment of $460,000 in the operating income.
Final answer:
The operating income of Sky High Seats would increase by $460,000 if the company accepts the special sales order for 4,000 seats at $375 per unit, as the fixed costs remain unchanged and no variable marketing and administrative costs will be incurred for this order.
Explanation:
To determine how Sky High Seats' operating income will be affected by the special sales order of 4,000 airplane seats at $375 each, we can calculate the incremental profit from the order.
Special Order Revenue = 4,000 seats imes $375 per seat = $1,500,000
Total variable costs for the special order are only from manufacturing since the marketing and administrative costs do not apply. So, the variable cost per unit is $260.
Special Order Variable Costs = 4,000 seats imes $260 per seat = $1,040,000
Incremental profit is then calculated by subtracting the special order variable costs from the special order revenue.
Incremental Profit = Special Order Revenue - Special Order Variable Costs = $1,500,000 - $1,040,000 = $460,000
Since the fixed costs remain unchanged, the incremental profit represents the amount by which the operating income would increase if Sky High Seats accepts the special order.
Cool Logos buys logo-imprinted merchandise and then sells it to university bookstores. Sales are expected to be $ 2 comma 003 comma 000 in September, $ 2 comma 240 comma 000 in October, $ 2 comma 378 comma 000 in November, and $ 2 comma 520 comma 000 in December. Cool Logos sets its prices to earn an average 30% gross profit on sales revenue. The company does not want inventory to fall below $ 420 comma 000 plus 20% of the next month's cost of goods sold. Prepare a cost of goods sold, inventory, and purchases budget for the months of October and November. Cool Logos Cost of Goods Sold, Inventory, and Purchases Budget For the Months of October and November October November Cost of goods sold Plus: Desired ending inventory Total inventory required Less: Beginning inventory Purchases
To calculate the COGS, inventory, and purchases budget for Cool Logos, subtract the 30% gross profit margin from projected sales to determine COGS, then compute the desired ending inventory based on a fixed amount plus a percentage of the next month's COGS. Finally, adjust for beginning inventory to find the purchases needed.
To prepare the cost of goods sold (COGS), inventory, and purchases budget for Cool Logos for the months of October and November, we need to follow several steps. Initially, we ascertain the cost of goods sold by deducting the desired gross profit margin from the sales revenue. Cool Logos aims for a 30% gross profit, so the cost of goods sold would be 70% of the sales revenue. Then we calculate the desired ending inventory, which should not fall below $420,000 plus 20% of the following month's COGS. We use these figures to determine the total inventory required and the purchases needed for each month after considering the beginning inventory.
For example, in October, the cost of goods sold would be 70% of $2,240,000, which amounts to $1,568,000. The desired ending inventory for October would be $420,000 plus 20% of November's COGS (which is 70% of $2,378,000). We compute the total inventory required by adding the COGS to the desired ending inventory. The purchases for October are then the difference between the total inventory required and the beginning inventory, which is September's ending inventory. The same process is used to calculate the figures for November.
uppose that a Swiss watchmaker imports watch components from Sweden and exports watches to the United States. Also suppose the dollar depreciates, and the Swedish krona appreciates, relative to the Swiss franc. Speculate as to how each would hurt the Swiss watchmaker. Explain why the U.S. demand for Mexican pesos is downsloping and the supply of pesos to Americans is upsloping.
Answer:
1)
In this case, the depreciation of the US dollar will make the Swiss watches more expensive for American customers, which will probably lower their demand.
The Swedish krona appreciation will increase the production costs of the watches, so the company will suffer twice, its sales will lower and its costs will increase.
2)
The US demand for Mexican pesos is downsloping because there is an inverse relationship between the price of the Mexican peso against the US dollar and the quantity of Mexican pesos demanded. As the exchange rate of the Mexican pesos depreciates against the US dollar, the demand for Mexican products in the US will increase because Mexican products are cheaper.
When the Swiss franc depreciates and the Swedish krona appreciates, it would hurt the Swiss watchmaker by increasing their production costs and making their watches more expensive for American consumers. The downsloping demand for Mexican pesos in the United States can be attributed to the law of demand, while the upsloping supply of pesos to Americans can be explained by the law of supply.
Explanation:
If the Swiss franc depreciates and the Swedish krona appreciates, it would hurt the Swiss watchmaker in several ways. Firstly, importing watch components from Sweden would become more expensive because the watchmaker would need to pay more Swiss francs for the same amount of Swedish krona. This would increase their production costs. Secondly, when the Swiss watchmaker exports watches to the United States, the watches would become more expensive for American consumers because the dollar depreciated against the Swiss franc. This could lead to a decrease in demand for Swiss watches in the US market.
The downsloping demand for Mexican pesos in the United States can be attributed to the law of demand. When the price of Mexican pesos increases, American consumers would demand fewer pesos as they become more expensive. On the other hand, the upsloping supply of pesos to Americans can be explained by the law of supply. When the price of Mexican pesos increases, Mexican sellers would be willing to supply more pesos to American consumers as they can now sell them for a higher price.
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Lithium, Inc. is considering two mutually exclusive projects, X and Y. Project X costs $95,000 today (year 0) and is expected to generate $65,000 in year one and $75,000 in year two. Project Y costs $120,000 and is expected to generate $64,000 in year one, $67,000 in year two, $56,000 in year three, and $45,000 in year four. The firm's investors require a rate of return of 16% and the weighted average cost of capital is 13%. What is the net present value for Project Y
Answer:
$52,521
Explanation:
As per Given Data
Project Y
Costs $120,000
Cash Inflows
Year 1 $64,000
Year 2 $67,000
Year 3 $56,000
Year 4 $45,000
Required rate of return = 16%
Weighted Average cost of Capital = 13%
Net Present Value
As we know Net Present value is calculated by discounting each years cash flows using using the Weighted Average cost of Capital.
Costs $120,000
Year Cash Inflows Discount factor 13% Present values
Year 0 $(120,000) (1+13%)^-0 $(120,000)
Year 1 $64,000 (1+13%)^-1 $56,640
Year 2 $67,000 (1+13%)^-2 $52,471
Year 3 $56,000 (1+13%)^-3 $38,811
Year 4 $45,000 (1+13%)^-4 $27,599
Net present value $52,521
What is a common workflow error that can cause duplicate expenses in QuickBooks Online?
Answer:
A common workflow error that can cause duplicate expenses in QuickBooks Online is:
Duplicating any transaction.
Explanation:
The reason behind this is that duplicating transactions is very common because it might originate before the accounting process is made. It can be executed by any manager or someone in the resources acquisitions department. That is why the books have to be reviewed at two different moments from two different departments. Accounting first and then finance. To check that everything is correct.
Answer:
Create a bill to record a vendor expense, and create a check to the vendor for the same expense
Explanation: