Answer:
$39,180
Explanation:
The computation of the retained earning is shown below:
= Stock dividend percentage × common stock shares × market value per share × - par value per share + balance in retained earning account
= 10 % × 12,000 shares × $ 24.6 × -$1 + $ 68,700
= - $29,520 + $68,700
= $39,180
We simply applied the above formula so that the balance in the retained earning could come
Final answer:
Without knowing the exact number of shares outstanding for Murphy's, we cannot calculate the specific retained earnings balance post-dividend. A stock dividend is recorded at the par value, thus the amount deducted is the number of shares times the par value times the dividend percentage. Without the number of shares, we can only explain the method for calculation.
Explanation:
The student asked what will the balance be in the retained earnings account after Murphy's announces a 10 percent stock dividend. To calculate this, we need to understand that a stock dividend will not be paid in cash, but instead with additional shares of stock. Given Murphy's current market value per share of $24.60, a 10 percent stock dividend means that for every 100 shares owned, an investor receives an additional 10 shares. However, this value must be transferred from the retained earnings account into the common stock account.
To calculate the amount that will be deducted from the retained earnings, we need to know how many shares are outstanding. Since we are not provided with the number of outstanding shares, we cannot compute the exact value to be deducted. Assuming theoretically that we know the number of shares, we would multiply the number of shares by the par value of $1 per share (since stock dividends are recorded at par value) and then by 10 percent to get the value of the stock dividend. This amount would then be deducted from the retained earnings account.
Without the number of shares outstanding, we can only describe the process: The calculation would be as follows: number of shares imes par value per share imes 10%. The result is the amount to be subtracted from the retained earnings. If we had the number of outstanding shares, we could find the balance that will remain in the retained earnings account after the stock dividend distribution.
Internal Controls System Availability Terms a. Activities required to keep a firm running during a period of displacement or interruption of normal operations b. A process that identifies significant events that may threaten a firm’s operations and outlines the procedures to ensure that the firm will resume operations if such events occur c. A service model in which a third-party service provider offers computing resources, including hardware and software applications, to cloud users over the Internet, and the service provider charges on a per-user basis d. A clearly defined and documented plan that covers key personnel, resources including IT infrastructure and applications, and actions required to be carried out in order to continue or resume the systems for critical business functions e. Using redundant units to provide a system with the ability to continue functioning when part of the system fails f. A device using battery power to enable a system to operate long enough to back up critical data and shut down properly during the loss of power
Answer:
A. Business Continuity Management (BCM): the activities required to keep a firm running during a period of displacement or interruption of normal operations.
B. Disaster Recovery Planning(DRP): a process that identifies significant events that may threaten a firm’s operations and outlines the procedures to ensure that the firm will resume operations if such events occur.
C. Cloud computing: a service model in which a third-party service provider offers computing resources, including hardware and software applications, to cloud users over the Internet, and the service provider charges on a per-user basis.
D. Disaster Recovery Planning (DRP): a clearly defined and documented plan that covers key personnel, resources including IT infrastructure and applications, and actions required to be carried out in order to continue or resume the systems for critical business functions.
E. Fault tolerance: using redundant units to provide a system with the ability to continue functioning when part of the system fails.
F. Uninterruptible power supply: a device using battery power to enable a system to operate long enough to back up critical data and shut down properly during the loss of power.
Management Theories, Inc. at a cash price of $1.5 million. Management Theories, Inc. has short-term liabilities of $500,000. As a result of acquiring Management Theories, Inc., Marketing Concepts, Inc. would acquire the copyrights to a national best-seller which would provide an estimated cash flow of $300,000 for the next five years. The firm has a cost of capital of 20 percent. The approximate net present value of this acquisition is
Answer:
$1,102,820
Explanation:
The computation of the net present value is shown below:
= Present value of yearly cash inflows - initial investment
where,
Present value of yearly cash inflows is
= Annual year cash inflows × PVIFA factor
= $300,000 × 2.9906
= $897,180
And, the initial investment is
= $1,500,000 + $500,000
= $2,000,000
So the net present value is
= $897,180 - $2,000,000
= $1,102,820
Southern Foods just paid an annual dividend of $1.10 a share. Management estimates the dividend will increase by 10 percent a year for the next four years. After that, the annual dividend growth rate is estimated at 3.2 percent. The required rate of return is 12 percent. What is the value of this stock today?
Answer:
$16.21
Explanation:
Worth of the stock is the present value of all the cash flows associated with the stock. Dividend is the only cash flow that a stock holder receives against its investment in the stocks. We need to calculate the present values of all the dividend payments.
Dividend Payment $1.10
Growth rate first 3 years 10%
Growth rate first 4 years 3.2%
Required rate of return 12%
Dividend Discount Factor PV Factor
First year Dividend $1.21 0.892857143 $1.08
Second year Dividend $1.33 0.797193878 $1.06
Third year Dividend $1.46 0.711780248 $1.04
Fourth year Dividend $1.61 0.635518078 $1.02
Stock value after fourth year = $18.89 0.635518078 $12.00
Stock Value $16.21
Final answer:
To calculate the value of the stock today, you need to determine the present value of all the future dividends. The formula to use is Future Dividend = D0 * (1 + g) + D0 * (1 + g)² + ... + D0 * (1 + g)ⁿ, where D0 is the dividend in the current year, g is the annual dividend growth rate, and n is the number of years. After calculating the future dividends, you can use the present value formula PV = FV / (1 + r)ⁿ, where PV is the present value, FV is the future value, r is the required rate of return, and n is the number of years.
Explanation:
To calculate the value of the stock today, we need to determine the present value of all the future dividends. The dividend in the current year is $1.10 per share. To find the future dividends, we can use the formula for the future value of a growing annuity. The formula is: Future Dividend = D0 * (1 + g) + D0 * (1 + g)² + ... + D0 * (1 + g)ⁿ, where D0 is the dividend in the current year, g is the annual dividend growth rate, and n is the number of years.
Using this formula, we can find the future dividends for the next four years: $1.10 * (1 + 0.10) + $1.10 * (1 + 0.10)² + $1.10 * (1 + 0.10)³ + $1.10 * (1 + 0.10)⁴ = $1.331, $1.464, $1.61, $1.771, respectively. After the fourth year, the dividend growth rate is estimated to be 3.2%, so we need to calculate the future dividend for the fifth year using the same formula: $1.771 * (1 + 0.032) = $1.827.
Now that we have the future dividends, we can calculate the present value of these dividends using the required rate of return. The present value formula is: PV = FV / (1 + r)ⁿ, where PV is the present value, FV is the future value, r is the required rate of return, and n is the number of years. Plugging in the values, we have:
$1.331 / (1 + 0.12) + $1.464 / (1 + 0.12)² + $1.61 / (1 + 0.12)³ + $1.771 / (1 + 0.12)^4 + $1.827 / (1 + 0.12)⁵ = $3.02
Therefore, the value of the stock today is $3.02 per share.
In January of year 0, Justin paid $4,800 for an insurance policy that covers his business property for accidents and casualties. Justin is a calendar-year taxpayer who uses the cash method of accounting.
1. What amount of the insurance premium may Justin deduct in year 0 in the following scenario?
a) The policy covers the business property from April 1 of year 0 through March 31 of year 1.
Answer:
$4,800
Explanation:
The total amount of the premium can be deducted under the 12-month rule. The reason for this is that the insurance does not cover more than 12 months and can not cover any time that is outside the next year end.
Red Blossom Corporation transferred its 40 percent interest to Tea Company as part of a complete liquidation of the company. In the exchange, Red Blossom received land with a fair market value of $545,000. The corporation's basis in the Tea Company stock was $500,000. The land had a basis to Tea Company of $780,000. What amount of gain does Red Blossom recognize in the exchange and what is its basis in the land it receives
Answer:
Gain recognized = $45,000
Basis in the land = $545,000
Explanation:
The computation of amount of gain and basis in the land it receives is shown below:-
This refers to taxable exchange. Therefore the Red Blossom would recognize a gain = Fair Market value - Basis in the Tea Company stock
= $545,000 - $500,000
= $45,000
and
The basis in the land it receives will be the fair value or
= Basis in the Tea Company stock + Gain
= $500,000 + $45,000
= $545,000
Which of the following is an example of countercyclical monetary policy posing a danger of overreaction? Select all that apply: Loose monetary policy seeking to end a recession goes too far and triggers inflation. Tight monetary policy seeking to reduce inflation goes too far and begins a recession. Tight fiscal policy seeking to reduce inflation goes too far and begins a recession. Loose fiscal policy seeking to end a recession goes too far and triggers inflation.
Question:
Which of the following is an example of countercyclical monetary policy posing a danger of overreaction?
Select all that apply:
A) Loose monetary policy seeking to end a recession goes too far and triggers inflation.
B) Tight monetary policy seeking to reduce inflation goes too far and begins a recession.
C) Tight fiscal policy seeking to reduce inflation goes too far and begins a recession.
D) Loose fiscal policy seeking to end a recession goes too far and triggers inflation.
Answer:
The correct choices are: A) and B)
Explanation:
When the Federal Reserve System wants to curtail a possible recession it tweakes the system to allow more inflow of money into the economy. When money circulation is about to go out of hand, it mops up excess money in the economy by tweaking interest rates among other monetar policy tools.
This cycle may go out of hand if the the Fed miscalculate their actions by either allowing too much money in circulation for a long time or if they mop up too much money at a given period.
Cheers!
Final answer:
The two examples of counter cyclical monetary policy posing a danger of overreaction are loose monetary policy that triggers inflation and tight monetary policy that causes a recession.
Explanation:
Counter cyclical monetary policy involves measures that the Federal Reserve (Fed) employs to counterbalance economic cycles. There are risks associated with implementing such policies, including the danger of overreaction. The examples provided indicate situations where policy adjustments may inadvertently lead to undesirable economic outcomes.
Loose monetary policy seeking to end a recession may be extreme, causing aggregate demand to spike and triggering inflation.Tight monetary policy with the intention to reduce inflation may overshoot, suppress aggregate demand excessively, and instigate a recession.Fiscal policy, though related, is distinct from monetary policy and involves government spending and tax actions.
If a country imports a small fraction of the world's supply, we expect it to face:____________. A. an upward-sloping residual supply curve B. a nearly perfectly elastic, horizontal residual supply curve. C. The type of supply curve it faces cannot be determined. D. a nearly perfectly inelastic, vertical residual supply curve.
Answer:
elastic
Explanation:
Demand is projected to be 600 units for the first half of the year and 900 units for the second half. The monthly holding cost is $2 per unit, and it costs $55 to process an order. Assuming that monthly demand will be level during each of the six-month periods covered by the forecast (e.g., 100 per month for each of the first six months), determine an order size that will minimize the sum of ordering and carrying costs for each of the six-month periods
Answer:
74 units and 90 units.
Explanation:
So, we have the demand for the first six months, K1 = 600 units = 600 units/ 6months = 100 units; the demand for the second six months, K2 = 900 units = 900/6 = 150 units; holding cost,J = $2 per unit ; process cost, P = $55 per order.
The formula for determining an order size that will minimize the sum of ordering and carrying costs for each of the six-month periods is the Economic Order Quantity formula which is given below;
Economic Order Quantity = √[ (2 × K1 × P)/ J ].
(1). For the first six months;
Economic Order Quantity = √ [ ( 2 × 100 × 55)/ 2].
Economic Order Quantity = 74 units.
(2). For the second six months.
Economic Order Quantity = √ [ ( 2 × 150 × 55)/ 2].
Economic Order Quantity = 90 units.
on september 1, best company began a contract to provide services to dilwood company for 6 months, with the total of $10800 payment to be made at the end of the six month period. equal services are provided each motnth. the firm usees the account fees receivable to reflect amounts due but not yet bulled. what propoer adjusting entry would best company make on devcember 31, the end of the accounting period (no previous adjustment has been made)
Answer:
Fee Receivable$7,200
To Service Fees Earned $7,200
(Being the service fess earned is recorded)
Explanation:
Th adjusting entry is shown below:
Fee Receivable$7,200
To Service Fees Earned $7,200
(Being the service fess earned is recorded)
For recording this we debited the fees receivable as it increased the assets and credited the services fees earned as it increase the revenues
Since the payment is made for 6 months but we have to recorded for 4 months i.e computed from September 1 to December 31
= $10,800 × 4 months ÷ 6 months
= $7,200
Final answer:
The correct adjusting entry for Best Company on December 31st to reflect four months of services provided to Dilwood Company would be a debit to Fees Receivable and a credit to Service Revenue for $7,200.
Explanation:
The student's question pertains to the area of accounting, specifically adjusting entries at the end of an accounting period. Since Best Company began providing services on September 1st for a 6-month contract at $10,800 total, and no invoice has been sent by December 31st, Best Company needs to recognize the revenue earned for services provided up to this point, despite not receiving payment yet. By December 31st, four months of service have been provided.
The revenue per month can be calculated by dividing the total contract amount by the number of months in the service period: $10,800 / 6 months = $1,800 per month. For four months of service, the total revenue earned but not yet billed is $1,800 x 4 = $7,200. Therefore, the adjusting entry on December 31st would be:
Debit Fees Receivable: $7,200
Credit Service Revenue: $7,200
This entry recognizes the revenue earned for services provided from September 1st to December 31st.
Suppose the following financial data were reported by 3M Company for 2019 and 2020 (dollars in millions). 3M Company Balance Sheets (partial) 2020 2019 Current assets Cash and cash equivalents $ 3,008 $1,833 Accounts receivable, net 3,055 3,100 Inventories 2,630 3,012 Other current assets 1,820 1,506 Total current assets $10,513 $9,451 Current liabilities $ 4,988 $5,830 (a) Calculate the current ratio and working capital for 3M for 2019 and 2020
Answer:
Current ratio
2019 1.62
2020 2.11
Working capital:
2019 $3,621
2020 $5,525
Explanation:
The current ratio formula =current assets/current liabilities
2019:
current assets is $9451
current liabilities=$5,830
current ratio= $9451/$5,830= 1.62
working capital =current assets-current liabilities=$9451-$5830=$3621
2020
current assets is $10513
current liabilities=$4988
current ratio= $10513/$4988 =2.11
working capital =current assets-current liabilities=$10,513-$4,988=$5525
mz technologies’ dividend growth is expected to decline gradually. for the next four years, the growth is expected to be 20%. in years 5,6 and 7 it is expected to grow at 16%, 12% and 8%. during year 8 and beyond, dividends are expected to grow at 5% for perpetuity. assume the last dividend paid was $1 (a moment ago) and the required rate of return is 10%. what is the current price?
Answer:
$9.00
Explanation:
Note: See the attached file for the calculation of PV of year 1 to 7 dividends.
Price at year 7 = year 8 dividend / (Rate of return - Perpetual growth rate) = (0.5747245056 * 1.05) / (10% - 5%) = $12.0692146176
PV of price at year 7 = $12.0692146176 / (1.10)^7 = $6.19341546169015
Current price = Sum of PV of years 1 to 7 dividends + PV of price at year 7 = $2.81096656749202 + $6.19341546169015 = $9.00
As an exporter, Delios Trading wants to be paid before a consignment is shipped. Correspondingly, its importer in Japan, Abe Imports, wants to pay only upon receipt of the consignment. These conflicting preferences of Delios Trading and Abe Imports are most likely a manifestation of
Answer:
Lack of trust
Explanation:
One of the key important assets to be managed in a business relationship is trust as it aids effective communication and ease the flow of business transaction.
However , trust is not guaranteed in every potential relationship considering the risks involved . That is the reason it is generally believed that one must work to earn a relationship.
In the situation where there is lack of trust , involved parties in a transaction will attempt to take maximum caution in order to mitigate or avoid the risks attached to the business transaction.
Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 70% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $4 and $5, respectively. Normal production is 30,000 curtain rods per year. A supplier offers to make a pair of finials at a price of $12.95 per unit. If Pottery Ranch accepts the supplier’s offer, all variable manufacturing costs will be eliminated, but the $45,000 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products.
Prepare an incremental analysis to decide if Pottery Ranch should buy the finials.
Answer and Explanation:
The preparation of the incremental analysis is presented below
Particulars Make Buy net Income Increase or (decrease)
Direct material $120,000 - $120,000
[$4 × 30,000]
Direct labor $150,000 - $150,000
[$5 × 30,000]
variable manufacturing $105,000 - $105,0000
[$150,000 × 70% ]
Fixed manufacturing $45,000 $45,000 -
Purchase price - 373,560 -$373,560
[30,000 × $12.95 ]
Total annual cost $420,000 $433,500 -$13,500
There is a decrement of $13,500 so it should be make decision rather buying decision
Item4 10 points eBookPrintReferences Check my work Check My Work button is now disabledItem 4Item 4 10 points Item Skipped Bishop has a capital balance of $120,000 in a local partnership, and Cotton has a $90,000 balance. These two partners share profits and losses by a ratio of 60 percent to Bishop and 40 percent to Cotton. Lovett invests $60,000 in cash in the partnership for a 20 percent ownership. The goodwill method will be used. What is Cotton’s capital balance after this new investment?
Answer:
Cotton’s capital balance after this new investment is $102,000
Explanation:
In order to calculate Cotton’s capital balance after this new investment we would have to calculate first the goodwill as follows:
Lovett invests $60,000, therefore, Actual value of partnership= $60,000
20%
Actual value of partnership=$300,000
Partnershio capital=$120,000+ $90,000+$60,000
Partnershio capital=$270,000
Therefore, goodwill=$300,000-$270,000
goodwill=$30,000
Therefore, distribution of goodwill would be as follows:
Bishop=$30,000×60%=$18,000
Cotton=$30,000×40%=$12,000
Therefore, Cotton's capital=$90,000+12,000
Cotton's capital=$102,000
Cotton’s capital balance after this new investment is $102,000
Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2020 sales forecast is as follows. Quarter HD-240 1 5,500 2 7,420 3 8,260 4 10,130 The January 1, 2020, inventory of HD-240 is 2,200 units. Management desires an ending inventory each quarter equal to 40% of the next quarter’s sales. Sales in the first quarter of 2021 are expected to be 25% higher than sales in the same quarter in 2020. Prepare quarterly production budgets for each quarter and in total for 2020.
Answer:
Explanation:
1 2 3 4 5
sales 15500 7420 8260 10130 19220
Inventory 2200
Ending
inventory 2968 3304 4052 7688
Production 16,268 7756 9008 13766
Total production = 46,798
Workings
Ending inventory
Quarter 1 =40%*7420
Quarter 2 40%*8260= 3304
Quarter 3 40%*10130=4052
Quarter 4 40%* 19220=7688
Production formula
Quarterly sales + ending inventory - opening inventory
Please note that the ending inventory of a quarter is the opening inventory of the next quarter
Quarterly production budgets for Turney Company in 2020: Q1 - 6,268 units, Q2 - 7,756 units, Q3 - 8,008 units, Q4 - 7,091 units.
To prepare quarterly production budgets for Turney Company for the year 2020, we need to consider the forecasted sales, desired ending inventory, and the beginning inventory for each quarter. Here's how we can calculate the production for each quarter:
1. Quarter 1 (Q1):
- Forecasted sales: 5,500 units
- Desired ending inventory for Q2: 40% of Q2 sales (7,420 units * 40% = 2,968 units)
- Beginning inventory for Q1 (January 1, 2020): 2,200 units
Production needed in Q1:
= Forecasted sales (5,500 units) + Desired ending inventory for Q2 (2,968 units) - Beginning inventory for Q1 (2,200 units)
= 5,500 + 2,968 - 2,200
= 6,268 units
2. Quarter 2 (Q2):
- Forecasted sales: 7,420 units
- Desired ending inventory for Q3: 40% of Q3 sales (8,260 units * 40% = 3,304 units)
- Beginning inventory for Q2: Ending inventory from Q1 (2,968 units)
Production needed in Q2:
= Forecasted sales (7,420 units) + Desired ending inventory for Q3 (3,304 units) - Beginning inventory for Q2 (2,968 units)
= 7,420 + 3,304 - 2,968
= 7,756 units
3. Quarter 3 (Q3):
- Forecasted sales: 8,260 units
- Desired ending inventory for Q4: 40% of Q4 sales (10,130 units * 40% = 4,052 units)
- Beginning inventory for Q3: Ending inventory from Q2 (3,304 units)
Production needed in Q3:
= Forecasted sales (8,260 units) + Desired ending inventory for Q4 (4,052 units) - Beginning inventory for Q3 (3,304 units)
= 8,260 + 4,052 - 3,304
= 8,008 units
4. Quarter 4 (Q4):
- Forecasted sales: 10,130 units
- Desired ending inventory for Q1 (2021): 40% of Q1 (2021) sales (25% higher than Q1, 2020) (10,130 units * 25% * 40% = 1,013 units)
- Beginning inventory for Q4: Ending inventory from Q3 (4,052 units)
Production needed in Q4:
= Forecasted sales (10,130 units) + Desired ending inventory for Q1 (2021) (1,013 units) - Beginning inventory for Q4 (4,052 units)
= 10,130 + 1,013 - 4,052
= 7,091 units
In total for 2020, the production budget is as follows:
- Q1: 6,268 units
- Q2: 7,756 units
- Q3: 8,008 units
- Q4: 7,091 units
These quarterly production budgets ensure that the desired ending inventory levels are met while fulfilling forecasted sales requirements throughout the year 2020.
For such more questions on Turney Company
https://brainly.com/question/16232520
#SPJ3
Lindsay Electronics, a small manufacturer of electronic research equipment, has approximately 7,000 items in its inventory and has hired Joan Blasco-Paul to manage its inventory. Joan has determined that 10% of the items in inventory are A items, 35% are B items, and 55% are C items. She would like to set up a system in which all A items are counted monthly (every 20 working days), all B items are counted quarterly (every 60 working days), and all C items are counted semiannually (every 120 working days). How many items need to be counted each day?
Answer:
The items need to be counted each day are 108 items
Explanation:
To calculate how many items need to be counted each day we would have to calculate first the amount of items according to its percentages as follows:
A items are 0.1 * 7000 = 700
B items are 0.35 * 7000 = 2,450
C Items are 0.55 * 700 = 3,850
Therefore, to calculate how many items need to be counted each day we would have to make the following calculation:
Items to be counted everyday= 700/20 + 2450/60 + 3850/120 = 108 items
In order to determine how many items need to be counted each day, we calculate the number of A, B, and C items in the inventory and divide them by the corresponding counting frequency. Approximately 35 A items, 40.83 B items, and 32.08 C items need to be counted each day.
Explanation:In order to determine how many items need to be counted each day, we need to calculate the number of A, B, and C items in the inventory. Since 10% of the items are A items, we can multiply the total number of items (7,000) by 0.10 to find that there are 700 A items. Similarly, there are 35% (or 0.35) of B items, which is 2,450 items, and 55% (or 0.55) of C items, which is 3,850 items. Now, let's calculate the number of items that need to be counted each day for each category.
For A items, counting is done monthly, so we divide 700 by the number of working days in a month (20) to get 35 A items that need to be counted each day. Similarly, for B items, counting is done quarterly, so we divide 2,450 by the number of working days in a quarter (60) to get approximately 40.83 B items that need to be counted each day. Lastly, for C items, counting is done semi-annually, so we divide 3,850 by the number of working days in half a year (120) to get approximately 32.08 C items that need to be counted each day.
Therefore, a total of 107.91 items need to be counted each day.
Learn more about Inventory counting here:https://brainly.com/question/29558632
#SPJ11
Stock S is expected to return 12 percent in a boom, 9 percent in a normal economy, and 2 percent in a recession. Stock T is expected to return 4 percent in a boom, 6 percent in a normal economy, and 9 percent in a recession. There is a 10 percent probability of a boom and a 25 percent probability of a recession. What is the standard deviation of a portfolio which is comprised of $4,500 of Stock S and $3,000 of Stock
Answer:
3.6%
Explanation:
Standard Deviation is the quantity that shows how much a each element of a group differs from the mean of the group on average.
Standard Deviation is 3.6%. All the calculations and workings are done in an MS Excel file, which is attached with this answer, please find it.
You produce widgets for sale in a perfectly com- petitive market at a market price of $10 per wid- get. Your widgets are manufactured in two plants, one in Massachusetts and the other in Connecticut. Because of labor problems in Connecticut, you are forced to raise wages there, so that marginal costs in that plant increase. In response to this, should you shift production and produce more in your Massachusetts plant?
Answer: No.
Explanation:
This is a Perfectly Competitive market and that means that you are a price taker who maximises output at a point where Marginal Revenue equals Marginal Cost ( MR = MC). As costs have gone up, it simply means that for the conditions to be satisfied, you need to produce less at the factory in Connecticut.
That does not mean that you have to produce more at the Massachusetts plant because it is already producing at capacity and increasing the marginal cost would violate the MR=MC rule as you have no control over the price so you cannot change Marginal Revenue. It is therefore better to keep the production level at the Massachusetts plant unchanged.
Use the following to answer questions 3-8: Number of Workers Total Cost 0 1000 1 2200 2 3200 3 4000 4 4600 5 5000 6 5200 7 5600 8 6200 9 7000 10 8000 If hiring the 4th worker increases total product by 50 units and the price of each unit is $15, a. the firm should not hire the 4th worker as MRMC c. marginal revenue equals $150 d. the firm should not hire the 4th worker as MR
Answer:
Firm should hire the 4th worker as MR > MC.
Explanation:
Here, we are comparing the marginal cost of hiring 4th worker with the revenue generated by the 4th worker.
Marginal cost of hiring 4th worker:
= Total cost with 4 workers - Total cost with 3 workers
= $4,600 - $4,000
= $600
Total revenue generated by the 4th worker:
= Number of units produced by 4th worker × Price of each unit
= 50 × $15
= $750
Therefore, the firm should hire the 4th worker as the marginal revenue of 4th worker is greater than its marginal cost.
At the beginning of the current period, Griffey Corp. had balances in Accounts Receivable of $239,000 and in Allowance for Doubtful Accounts of $9,000 (credit). During the period, it had net credit sales of $898,000 and collections of $785,000. It wrote off as uncollectible accounts receivable of $7,000. However, a $4,300 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $24,700 at the end of the period. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) Prepare the entries to record sales and collections during the period. (b) Prepare the entry to record the write-off of uncollectible accounts during the period. (c) Prepare the entries to record the recovery of the uncollectible account during the period. (d) Prepare the entry to record bad debt expense for the period.
what kind of applications can improve the quality of your blog ?
A) plugins
B) advanced graphics
C) live webcams
D) hyperlinks
Plugins, advanced graphics, and hyperlinks are all applications that can improve the quality of your blog. Plugins enhance functionality, advanced graphics improve visual appeal, and hyperlinks provide further information.
Explanation:Indeed, various applications can significantly improve the quality of your blog. If we examine the options, we will find that A) plugins are software components that add specific features to an existing computer program, in this case, your blog. These can enhance functionality or add new features to your blog site.
B) Advanced graphics can also improve the quality of your blog by making it more visually appealing to the readers, thereby improving their overall user experience.
Additional beneficial applications for your blog also include D) hyperlinks. Hyperlinks can link your blog to additional sources of information or relevant content, which will give your blog a depth of content and can help keep your readers engaged.
Learn more about Blog Improvement here:https://brainly.com/question/13823027
#SPJ12
Mathelesea Corporation has 8,000 shares of 5%, $5 par cumulative preferred stock and 46,000 shares of common stock outstanding. Mathelsea declared no dividends in 2017 and had no dividends in arrears prior to 2017. In 2018%E2%80%8B, Mathelsea declares a total dividend of $53,000. How much of the dividends go to the common%E2%80%8B stockholders? A. $ 49 comma 000$49,000 B. $ 51 comma 000$51,000 C. $ 53 comma 000$53,000 D. %E2%80%8BNone; it all goes to preferred stockholders
Answer:
The correct option is A,$49,000
Explanation:
The share of declared dividends for the common stock shareholders is the total dividends declared in the current minus the preferred stock dividends for current year and prior year because preferred stock is entitled to arrears of dividends(it has cumulative conditional clause attached).
Total dividends declared $53,000
preferred stock dividend(2016) ($2,000)
preferred stock dividend(2017) ($2,000)
common stock share of dividends $49,000
Preferred stock dividend=8000*5%*$5=$2000
The correct option,based on the above analysis,is option A
Madison Corporation's production cycle starts in the Processing Department. The following information is available for April: Units Work-in-process, April 1 (25% complete) 40,000 Total units in process during April 280,000 Work-in-process, April 30 (60% complete) 25,000 Materials are added at the beginning of the process in the Processing Department. What are the equivalent units of production for the month of April, assuming Madison uses the weighted-average method
Answer:
Equivalent units = 270,000
Explanation:
Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked.
Completed Units= total units in process during April - Closing WIP
= 280,000 - 25,000 = 255,000
Note that the description 'total units in process in during April', implies that the opening inventory is inclusive in the figure of 280,000.
Equivalent units = degree of completion(%) × units
Item Equivalent units
Completed units 255,000 255,000× 100% = 255,000
Closing work in progress 25,000 25,000× 60% = 15,000
Total equivalent units 270,000
Equivalent units = 270,000
Cameron Blair, a friend from college, asks you to form a partnership to import fragrances. Since graduating, Blair has worked for the Spanish Embassy, developing important contacts among government officials. Blair believes she is in a unique position to capitalize on an important market. With expertise in accounting, you would have responsibility for the partnership's accounting and finance. List the seven items that would need to be incorporated into the written partnership agreement.
Answer:
The definition for the problem is listed in the segment below on explanations.
Explanation:
The seven elements that will have to go along with the partnership agreement or resolution are given below:
Name, place, as well as nature.Title, capital commitment, and responsibilities.New partner practices.Benefit and loss account.Asset withdrawal.Partnership liquidation.So that the above is the right answer.
Final answer:
A written partnership agreement is crucial and should include the partnership's name and partners, funding arrangements, profit/loss distribution, partner roles and responsibilities, procedures for partner changes, terms of the agreement, and liability/insurance provisions.
Explanation:
When forming a partnership, it’s essential to draft a comprehensive written partnership agreement that outlines the specifics of the business relationship. The following seven items should be included:
The name of the partnership and the names of the partners involved.Investment amounts from each partner and how additional funding will be handled.The distribution of profits and losses and the formulas for such calculations, including the handling of draws and distributions.The roles and responsibilities of each partner, including decision-making authority and dispute resolution mechanisms.Procedures for admitting new partners, handling the withdrawal or death of a partner, and the dissolution of the partnership.The terms of the partnership, including the duration of the partnership and any events that would lead to its dissolution.Any clauses related to the limitation of liability or the inclusion of insurance to manage risks associated with the partnership’s operations.These components help safeguard the interests of all partners and ensure that the has an effective framework for operation and conflict resolution.
Insigne Co. uses a periodic inventory system. Beginning inventory on January 1 was overstated by $31,700, and its ending inventory on December 31 was overstated by $16,300. In addition, a purchase of merchandise costing $74,000 was incorrectly recorded as a $7,400 purchase. None of these errors were discovered until the next year. As a result, taxable income for this year was:
Answer:
Taxable income understated by $82,000
Explanation:
Computation:
Particular Amount
Incorrectly recorded purchase $7,400
Add: Ending inventory overstated $16,300
$23,700
Less: Opening inventory overstated $31,700
Less: Purchase of inventory $74,000
Taxable income understated $82,000
Westshore Diagnostics has 28,000 shares of common stock outstanding and the price is per share of $71 . The rate of return on their stock is 13.40 percent. Westshore Diagnostics has 6,900 shares of 7.00 percent preferred stock outstanding at a price of $91.00 per share. The preferred stock has a par value of $100. The outstanding debt has a total face value of $380,000 and currently sells for 107 percent of face. The yield to maturity on the debt is 7.84 percent. What is the firm's weighted average cost of capital if the tax rate is 39 percent?
Answer :
Weighted average capital cost = 11.05%
Explanation :
As per the data given in the question,
(a) (b) (c = a × b)
Amount per share Bond price or share price Market value Weight (c/Total)
Debt $380,000 107% $406,600 13.45%
Preferred stock 6,900 $91 $627,900 20.77%
Common stock 28,000 $71 $1,988,000 65.77%
Total $3,022,500
Now the WACC is
Particulars Cost Weight Weighted cost
Debt 4.78% 13.45% 0.64%
Preferred stock 7.69% 20.77% 1.60%
Common stock 13.40% 65.77% 8.81%
WACC 11.05%
Working Notes:
Cost of debt = 7.84% × (1 - 39%)
= 4.78%
Cost of preferred stock = Dividend ÷ current price
=(7% × 100) ÷ 91
= 0.07692
= 7.69%
Booker Corporation had the following comparative current assets and current liabilities: Dec. 31, 2019 Dec. 31, 2018 Current assets Cash $60,000 $30,000 Short-term investments 40,000 10,000 Accounts receivable 55,000 95,000 Inventory 110,000 90,000 Prepaid expenses 35,000 20,000 Total current assets $300,000 $245,000 Current liabilities Accounts payable $140,000 $110,000 Salaries payable 40,000 30,000 Income tax payable 20,000 15,000 Total current liabilities $200,000 $155,000 During 2019, credit sales and cost of goods sold were $750,000 and $400,000, respectively.
Compute the following liquidity measures for 2019.
1. Current ratio
2. Working capital
3. Acid-test ratio
4. Accounts receivable turnover times
5. Inventory turnover times
Answer:
1. $1.5
2. $95,000
3. 5.28
4. $75,000
5. $100,000
Explanation:
The computation of liquidity measures for 2019 is shown below:-
Computation of the different Liquidity Measures
1. Current Ratio = Current assets ÷ Current liabilities
= $300,000 ÷ $200,000
= $1.5
2. Working Capital for 2019 = Current assets ÷ Current liabilities
= $300,000 - $200,000
= $100,000
Working Capital for 2018 = $245,000 - $155,000
= $90,000
Average Working Capital = (Opening Working capital + Closing Working capital) ÷ 2
= ($90,000 + $100,000) ÷ 2
= $95,000
3. Acid Test Ratio = Cash and cash equivalents + Short Term Investment + Current Receivables ÷ Current liabilities
= ($60,000 + $40,000 + $55,000) ÷ $200,000
= 5.28
4. Accounts receivable turnover times
Accounts Receivable Turnover Times = Net Credit Sales ÷ Average Accounts Receivable
= $750,000 ÷ $75,000
= 10
Average Accounts Receivable = ($55,000 + $95,000) ÷ 2
= $75,000
5. Inventory Turnover Times = Cost of Goods Sold ÷ Average Inventory
= $400,000 ÷ $100,000
= 4
Average Inventory = ($110,000 + $90,000) ÷ 2
= $100,000
therefore we have applied the above formula.
The liquidity measures for Booker Corporation in 2019 are: Current ratio of 1.5, Working capital of $100,000, Acid-test ratio of 0.95, Accounts receivable turnover times of 10 and Inventory turnover times of 4.
Explanation:The liquidity measures required to be calculated are:
Current ratio is calculated by dividing total current assets by total current liabilities. As per information provided, current ratio for 2019 is $300,000 / $200,000 = 1.5.Working capital, is calculated by subtracting total current liabilities from total current assets. Working capital for 2019 is $300,000 - $200,000 = $100,000.The acid-test ratio or quick ratio, is calculated by subtracting inventories from current assets and then dividing by current liabilities. It is ($300,000 - $110,000) / $200,000 = 0.95 for 2019.Accounts receivable turnover times is calculated by dividing credit sales by average accounts receivable. Here it is $750,000 / (($55,000 + $95,000)/2) = 10 times in 2019.Inventory turnover times is calculated by dividing cost of goods sold by average inventory. It is $400,000 / (($110,000 + $90,000)/2) = approximately 4 times in 2019.Learn more about Liquidity Measures here:https://brainly.com/question/16752845
#SPJ3
In the new product development process, ideas that pass the idea screening step continue through ________. Strong concepts proceed to ________. A. marketing strategy development; business analysis B. product concept development; marketing strategy development C. product concept development; product development D. product concept development; business analysis E. marketing strategy development; product concept development
Answer:
B. product concept development; marketing strategy development
Explanation:
Product concept development is the stage at which a lot of product ideas are generated, and new product are screened with the purpose of identifying good ideas and discarding poor ones on time. The new product concepts are then tested at this stage with a group of target consumers in order to discover the concepts with strong consumer appeal.
After product concept development, strong concepts proceed to marketing strategy development which, based on the product concept, is the stage at which an initial marketing strategy for a new product are designed.
In the new product development process, after an idea passes the idea screening, it enters the product concept development phase. If it is a strong concept, it then proceeds to business analysis.
Explanation:In the new product development process, once an idea goes through the idea screening stage, it moves into product concept development. During this phase, the idea turns into a product concept where it is fully detailed with all its features and benefits. Then, if the concept is strong and promising, it proceeds to the next stage, which is business analysis. Here, the feasibility of the product concept is assessed in relation to the company's business model and market dynamics.
Learn more about New Product Development here:https://brainly.com/question/28166762
#SPJ12
Your bosses at the residential contracting firm has asked you to help them decide about whether they should keep a particular item of construction equipment or accept an offer for sale. The equipment cost $126,000 new and it has a useful life of eight years.The firm has been using a double declining balance (DDB) method of depreciation and this is the third year of ownership. Your firm has received an offer to purchase the item (at the end of this third year of ownership) for $60,000. However, your bosses only will sell if doing so will make a profit. To help your bosses decide whether or not they should sell the equipment, calculate the remaining book value at the end of year 3 (the anticipated time of sale).
Answer:
The remaining book value at the end of year 3 is $53,156.25 < Selling price
The Bosses should sell the equipment.
Explanation:
Under the straight-line method, useful life is 8 years, so the asset's annual depreciation will be 12.5% of the Depreciable cost.
Depreciable cost = Total asset cost - salvage value = $126,000-$0 = $126,000
Under the double-declining-balance method the 12.5% straight line rate is doubled to 25% - multiplied times the Depreciable cost's book value at the beginning of the year.
In the first year, depreciation expense = 25% x $126,000 = $31,500
At the beginning of the second year, the Depreciable cost's book value is $126,000-$31,500 = $94,500
Depreciation expense in second year = 25% x $94,500 = $23,625
At the beginning of the year 3, the Depreciable cost's book value is $94,500-$23,625 = $70,875
Depreciation expense in second year = 25% x $70,875 = $17,718.75
Accumulated depreciation at the end of year 3 = $31,500 + $23,625 + $17,718.75 = $72,843.75
The remaining book value at the end of year 3 = Total asset cost - Accumulated depreciation at the end of year 3 = $126,000 - $72,843.75 = $53,156.25 < $60,000 (Selling price)
The Bosses should sell the equipment.
Nefchio is a popular Web site among online gamers. It incorporates interactive and collaborative features to create a richer, more interesting, and more useful experience. In this scenario, Nefchio uses an approach called
Answer:
Web 2.0
Explanation:
Web 2.0: The term "Web 2.0" is described as a specific website that is responsible for allowing the different users to collaborate and interact with one another via "social media dialogue" as creators associated with "user-generated content" in a particular virtual community. However, it tends to contrast the very first generation of "Web 1.0-era" websites in which individuals were considered as limited towards viewing a specific content in a "passive manner".
In the question above, the given statement represents "Web 2.0".
Nefchio, a gaming website, uses an approach known as social networking as part of the Web 2.0 domain, focusing on interactive and collaborative features to enrich the user experience through user-generated content, interoperability, and end-user driven design.
Nefchio, a popular website among online gamers that incorporates interactive and collaborative features to enhance the user experience, employs an approach known as social networking. This method is part of a larger category within technology known as Web 2.0, which focuses on the ability to facilitate interactive information sharing, interoperability, user-centered design, and collaboration on the World Wide Web. A site like Nefchio, which enables users to engage in discussions, share information, and collaborate in a more social environment, exemplifies the core values of Web 2.0.
Key features that align with the Web 2.0 approach include user-generated content, interoperability, and end-user driven design. User-generated content allows for a richer and more diverse pool of ideas and experiences. Interoperability ensures that the platform can work seamlessly across different devices and networks, enhancing user accessibility. End-user driven design prioritizes the needs and preferences of the users, making the interface more intuitive and engaging.
Through these features, Nefchio not only provides a platform for gaming discussions and collaborations but also enriches the user experience by fostering a community-oriented environment. This approach is fundamental in creating a dynamic and interconnected online experience that goes beyond traditional, static web pages.