A company has3process options with the following costs:Process OptionsABCfixed cost ($)1,200,000220,000580,000variable cost/unit ($)31371)Find the range of forecasted volumes where process Cis optimal.2)The Point of Indifference between Process A and Process Boccurs at a total costof $________.3)The company has chosen process Aand expects to operate at a lossuntil 30,000 units have been sold.What is the price for each unit s

Answers

Answer 1

Answer: See explanation

Explanation:

a. First and foremost, we have to get the total cost equations which will be:

Total cost (A) = 1200000 + 3Q

Total Cost (B) = 220000 + 13Q

Total Cost (C) = 580000 + 7Q

To get the range of forecasted volumes where process C is optimal, we have to get the cross-over point between A, B and C which goes thus:

Between A and C will be:

= (1200000 - 580000)/(7 - 3)

= 620000/4

= 155,000

Between B and C will be:

= (220000 - 580000)/(7 - 13)

= 360,000 / 6

= 60,000

Therefore, the range of the forecasted volumes where process C is optimal will be [60000, 155000]

(b) The point of indifference between A and B will be the difference in their fixed cost divided by the difference in their variable cost which will be:

= (1200000 - 220000)/(13 - 3)

= 980,000 / 10

= 98,000

(c) The price for each unit will be:

30,000 = 1200,000 / (Selling price - 3)

Selling price - 3 = 1200,000 / 30,000

Selling price - 3 = 40

Selling price = 40 + 3

Selling price = $43


Related Questions

2. It is the intentional planting of trees or shrubs that are grown for food
production.
A. Orchards
B. Plants
C. Shrubs
D. Trees

Answers

Answer:

A.

Explanation:

An orchard can be described as a tree garden where plants are sown intentionally. The term 'orchard' is derived from an Old English word 'orceard', meaning 'fruit garden.'

Orchards is a fruit farm where trees or shrubs are intentionally sown with the purpose of food production. Some examples include apple orchards, orange orchards, etc.

Therefore, option A is the correct answer.

Colter Steel has $4,800,000 in assets. Temporary current assets $ 1,600,000 Permanent current assets 1,530,000 Fixed assets 1,670,000 Total assets $ 4,800,000 Assume the term structure of interest rates becomes inverted, with short-term rates going to 12 percent and long-term rates 2 percentage points lower than short-term rates. Earnings before interest and taxes are $1,020,000. The tax rate is 40 percent. If long-term financing is perfectly matched (synchronized) with long-term asset needs, and the same is true of short-term financing, what will earnings after taxes be

Answers

Answer:

Long-term financing need:

Permanent current assets   $1,530,000

Fixed assets                         $1,670,000

Total                                      $3,200,000

Short-term financing need:

Temporary current assets      $1,600,000

Long-term interest expense  $320,000

Short-term interest expense  $192,000

Total interest expense           $512,000

EBIT                               $1,020,000

Interest expense           $512,000

Earnings before taxes   $508,000

Taxes                              $203,200

Earnings after taxes       $304,800

Workings:

Long-term interest expense =10%× $3,200,000 = $320,000

Short-term interest expense =12% × $1,600,000 = $192,000

Taxes = 40% × $508,000 = $203,200

Arrange the types of investments in the correct order from the least risky to the most risky investment. property
bonds
starting a business
mutual funds

Answers

Answer:

Bonds

property

speculative bonds

starting a business

Explanation:

Bonds are low-risk investments. They are issued by governments or highly reputable corporations. The returns from bond investments are almost guaranteed.

Property refers to investing in land or building. They are low-risk investments. Land is always appreciating in value. The possibility of incurring losses is low.

Speculative bonds will experience price fluctuations during a trading session. They offer a chance to make high returns. They are risky due to the high chances of incurring losses.

Starting a business is the riskiest. Almost 82% of all start-ups will fail in their first year.

Answer:

bonds

mutual funds

starting a business

Explanation:

Hopes this helps :)

Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $86,722. The Focus Company initially offered to buy the land for $111,289. The companies settled on a purchase price of $212,000. On the same day, another piece of land on the same block sold for $103,641. Under the cost principle, at what amount should the land be recorded in the accounting records of Focus Company

Answers

Answer: $212,000

Explanation:

Under the cost principle, the amount that the land should be recorded in the accounting records of Focus Company would be $212,000.

It should be noted that under the cost principle, any property that can be considered to be an asset would have to measured at its cost.

Since the companies settled on a purchase price of $212,000, that'll be the amount that will be recorded.

The adjusted trial balance for China Tea Company at December 31, 2021, is presented below: Accounts Debit Credit Cash $ 16,000 Accounts receivable 158,000 Prepaid rent 7,000 Supplies 27,000 Equipment 330,000 Accumulated depreciation $ 127,000 Accounts payable 19,000 Salaries payable 3,800 Interest payable 1,500 Notes payable (due in two years) 30,000 Common stock 180,000 Retained earnings 94,700 Dividends 30,000 Service revenue 470,000 Salaries expense 185,000 Advertising expense 78,000 Rent expense 18,000 Depreciation expense 33,000 Interest expense 2,000 Utilities expense 42,000 Totals $ 926,000 $ 926,000 Prepare a classified balance sheet for China Tea Company as of December 31, 2021.

Answers

Answer:

China Tea Company

Classified Balance Sheet as at December 31, 2021

ASSETS

Non Current Assets

Equipment                                                               $330,000

Accumulated depreciation                                    ($127,000)

Total Non - Current Assets                                    $203,000

Current Assets

Prepaid rent                                                                $7,000

Supplies                                                                    $27,000

Accounts receivable                                               $158,000

Cash                                                                          $ 16,000

Total Current Assets                                              $208,000

TOTAL ASSETS                                                        $411,000

EQUITY AND LIABILITIES

EQUITY

Common stock                                                      $180,000

Retained Earnings                                                 $361,700

TOTAL EQUITY                                                      $541,700

LIABILITIES

Non Current Liabilities

Notes payable (due in two years)                         $30,000

Total Non - Current Liabilities                               $30,000

Current Liabilities

Accounts payable                                                  $19,000

Salaries payable                                                      $3,800

Interest payable                                                       $1,500

Total Current Liabilities                                         $24,300

TOTAL LIABILITIES                                               $54,300

TOTAL EQUITY AND LIABILITIES                      $596,000

Explanation:

A Balance Sheet show the Assets, Liabilities and Equity Balances as at the Reporting date

Retained Earnings Balance = Opening Balance + Profit for the year - Dividends.

where,

Profit for the Year = Sales - Expenses

                              = $470,000 - ($78,000 + $18,000 + $33,000 + $2,000 + $42,000)

                              = $297,000

therefore,

Retained Earnings Balance = $94,700 + $297,000  - 30,000 = $361,700

Stevens placed an ad in a literary magazine offering $7,400 for a complete set of Vacation in Paradise, a five volume set. Adams, who was not aware of the offer, gave to Stevens four volumes of the Vacation in Paradise set as a birthday present. Adams was informed of the offer at some point, obtained the missing volume, brought the volume to Stevens and requested the $7,400 payment. Stevens refused. If Adams sues, will he prevail

Answers

Answer:

Yes he will prevail because the advert placed is a unilateral contract

Explanation:

A unilateral contract is one that has only one promisor who receives a promise for his from the offeror. It is usually settlement for a particular service or product.

On the other hand bilateral agreement has both parties as the promisor and offeror. Meaning both of them have conditions that must be fulfilled in the contract by the other person.

In the given instance Stevens placed an ad in a literary magazine offering $7,400 for a complete set of Vacation in Paradise, a five volume set.

Any service short of this can be viewed as a failure in the contract.

Adams gave to Stevens four volumes of the Vacation in Paradise set as a birthday present. Adams was informed of the offer at some point, obtained the missing volume, brought the volume to Stevens.

Since Adams had not initially satisfied conditions set by Stevens, Stevens can refuse to make the $7,400 payment

dentify which of the following statements is true. Group of answer choices The gift tax exclusion is available only for a gift of a present interest. A purpose of the annual exclusion is to eliminate the necessity of accounting for and reporting small gifts such as those made for weddings and Christmas. A present interest is an unrestricted right to the immediate use, possession, or enjoyment of property or the income from property. All of the above are true.

Answers

Answer:

Option D (All of the above are true) would be the right approach.

Explanation:

Future rewards of involvement aren't really able to qualify for allowance from taxation on presents as well as exclusions. Thus, only gifts of even more present involvement were also eligible to claim exemption on presents. This same sets up exemption has been tasked with the responsibility of eliminating the financial statements of thoughtful gifts besides formal events, and so much more.

Present interest seems to be a responsibility which really characterizes this same authority for using, possess as well as appreciate the possessions or its earnings instantaneously. So all the points are valid.

You want to receive $5000 per month for 20 years in real dollars in an account when you retire in 35 years. The first monthly payment to be received 1 month after you retire. The nominal return on your investment is 9.94 percent and the inflation rate is 3.2 percent. What is the real amount you must deposit each year for 35 years to achieve your goal

Answers

Answer:

The real amount you must deposit each year for 35 years to achieve your goal is $5,359.02

Explanation:

To calculate the real amount we need to calculate the real interest rate as follow

1 + Nominal rate = ( 1 + Real rate ) x ( 1 + Inflation rate )

1 + 9.94% = ( 1 + Real rate ) x ( 1 + 3.2% )

1.0994 = ( 1 + Real rate ) x 1.032

1 + Real rate = 1.0994 / 1.032

1 + Real rate = 1.06531

Real rate = 1.06531 - 1

Real rate = 0.06531

Real rate = 6.531% = 6.53%

We need to calculate the PV of the payment that should be received.

Use the following formula to calculate the present value

PV of Annuity = Annuity payment x ( 1 - ( 1 + Interest rate )^-numbers of annuity payments ) / Interest rate

Where

Annuity Payment = $5,000 per month

Interest rate = 6.53% / 12 = 0.5442%

Numbers pf annuity payments = 20 years  x 12  payments per year = 240 payment

PLacing values in the formula

PV of Annuity = $5,000 x ( 1 - ( 1 + 0.5442% )^-240 ) / 0.5442%

PV of Annuity = $5,000 x 133.80362

PV of Annuity = $669,018.09

Now calculate the amount of deposit required to receive the payment after retirement.

Use the following formula to calculate the real deposit

Future value of annuity = Annuity Payment x ( 1 + Interest rate )^numbers of annuity payments - 1 ) / Interest rate

Where

Future value of annuity = $669,018.09

Interst rate = 6.53%

Numbers of annuity payment = 35 years x 1 payment per year = 35 payments

Annuity payment = Real amount of deposit = ?

Placing values in the formula

$669,018.09 = Real amount of deposit x ( 1 + 6.53% )^35 - 1 ) / 6.53%

$669,018.09 = Real amount of deposit x 124.83967

Real amount of deposit = $669,018.09 / 124.83967

Real amount of deposit = $5,359.02

Sound Audio manufactures and sells audio equipment for automobiles. Engineers notified management in December 2018 of a circuit flaw in an amplifier that poses a potential fire hazard. An intense investigation indicated that a product recall is virtually certain, estimated to cost the company $7.5 million. The fiscal year ends on December 31. Required: 1. Should this loss contingency be accrued

Answers

Answer and Explanation:

According to the given situation, the contingent liability should be probable and estimated so the cost of the warranty i.e. loss contingency would be accrued and the same would be recorded and reported depend upon the predicted amounts

hence, the same would be considered and relevant too

In The Last Lecture video, Randy Pausch informs his audience about his health situation and then goes into sharing his childhood dreams that he was able to achieve. Through his lecture, he is able to demonstrate the leadership competencies commonly identified among leaders from around the world. In a PowerPoint presentation, Analyze seven key leadership competencies observed in The Last Lecture Identify how these competencies relate to various leadership styles. Determine how these leadership competencies apply to organizational success.

Answers

The correct answer to this open question is the following.

Unfortunately, you did not attach the link to the video.

However, what we can do is to share some leadership competencies commonly identified among leaders from around the world so you cant use this information to prepare your PowerPoint Presentation.

Let's start with two leadership traits that are included in the famous speech delivered by professor Randy Pausch titled "Really Achieving Your Childhood Dreams," on September 18, 2007, at McConomy Auditorium at Carnegie Mellon University.

When Pausch was referring to his dream of being a professional football player in the NFL, he said his high school coaches taught him various leadership lessons.

Persistence. No matter the coach was hard on him, he understood the value of being persistent and never surrender.

Own the fundamentals. He understood during his football practices that fundamentals were the basis for everything. So you have to work on your fundamentals to do things right.

Feedback. Leaders like to give feedback, although it comes in screams and shouts. Pausch understood that if the coach was hard on him, was because the coach was interested in him and wanted him to improve as a player and as a person.

Enthusiasm. Pausch said that coach Graham taught him the trait of enthusiasm. No matter what happened, players and coaches had to show enthusiasm all the time.

Acceptance. Pausch commented that when he was at Electronics Arts, he learned about the importance to accept the experience, which for him was to get what you receive that you did not want.

Be a role model. You have to be a role model when you are in command, and he set the example of Captain Kirk in the Star Trek TV series.

Being an Imagineer. He said that imagination was very important to create new and useful new things.

What is the present value of the following set of cash flows, discounted at 15% per year? Year 1 2 3 4 Cash flow $100 -$100 $200 -$200

Answers

Answer:

$28.51

Explanation:

The computation of the present value of the following cash flows is as follows;

Present value factor = 1 ÷ (1 + rate of interest)^number of years

Now the present value is  

= $100 × present value factor of year 1 - $100 × present value factor of year 2 + $200 × present value factor of year 3 - $200 × present value factor of year 4

= $100 × 0.8696 - $100 × 0.7561 + $200 × 0.6575 - $200 × 0.5717

= $86.96 - $75.61 + $131.5 - $114.34

= $28.51

Prompt What is the term for a potential customer who has shown interest in the company‘s product?

Answers

A customer lead is the professional term used for the potential customer who has shown interest in the company's product.

What would you do if you got conflicting answers for the same procedure from two different people you interviewed? What would you do if one was a clerical person and the other was the department manager?

Answers

Answer:

The best solution will be to get the two individuals together to try and get a solution that is agreeable between two of them.

Explanation:

The role of a system analyst is not to make a decision about the best procedure to use, rather it is the responsibility of the users to do so.

The analyst is to facilitate a common ground that takes into consideration all views.

In the given scenario the department manager may be privy to information that the clerical person does not have. This will give a better view of processes that will be in line with business goals and objectives.

However the clerical staff pays more attention to details of business procedures. He is most likely more updated on business procedure that the department head.

The best way forward is the get the two of them together to trash out the differences of their procedures and come up with one that takes the managerial view of the department head and the detail oriented view of the clerical staff into consideration

The role of the system analyst is not to decide on the best method to use, rather it is the responsibility to come up with a common viewpoint where both their opinions can be considered.

What are the responsibilities of a System Analyst?

A systems analyst is a person who uses analytical and design techniques to solve business problems using information technology.

System analysts can act as agents of change who identify organizational improvements needed, design systems to implement those changes, and train and motivate others to use the systems.

The analyst is to facilitate a consensus that takes into account all the ideas.

In this case, the department head may be aware of information that the pastor does not have. This will give you a better idea of ​​the processes that will align with the goals and objectives of the business.

However, clerical staff pays close attention to details of business processes. The clerk may know more about the business processes head of a department.

The best way forward is to bring the two together to eliminate the differences in their procedures, it is the system analyst's responsibility to come up with a common viewpoint where both their opinions can be considered.

To learn more about role of system analyst, refer:

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Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500.During the period, 14,000 units of direct materials were added at a cost of $28,700, and 15,000 units were completed.At the end of the period, 3,000 units were 75% completed.All materials are added at the beginning of the process.Direct labor was $32,450 and factory overhead was $18,710.The number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories was:________.
A. 14,850B. 14,650C. 15,650D. 14,150

Answers

Answer:

C. 15,650

Explanation:

Calculation for what The number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories was:

First step is to calculate the Unit transferred out

Unit transferred out = 4,000+14,000-3,000

Unit transferred out = 15,000

Now let calculate Equivalent unit of conversion

Equivalent unit of conversion = (4,000*60%)+11,000+(3,000*75%)

Equivalent unit of conversion =15,650

Therefore the number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories was:15,650

Nettle Co. uses process costing to account for the production of rubber balls. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Equivalent units have been calculated to be 12,000 units for materials and 10,000 units for conversion costs. Beginning inventory consisted of $7,000 in materials and $4,000 in conversion costs. April costs were $36,000 for materials and $40,000 for conversion costs. Ending inventory still in process was 4,000 units (100% complete for materials, 50% for conversion). The equivalent cost per unit for materials using the FIFO method would be closest to:

Answers

Answer:

$3

Explanation:

The computation of the  equivalent cost per unit for materials using the FIFO method is shown below:

= Materials cost ÷ equivalent units in materials

= $36,000 ÷ 12,000 units

= $3

hence, the equivalent cost per unit for materials using the FIFO method is $3

The adjusted trial balance of Tahoe Company at the end of the accounting year, December 31, 2016, showed the following: Account Titles Adjusted Trial Balance Debits Credits Cash $20,000 Machinery 90,000 Accumulated depreciation $16,000 Accounts payable 7,000 Capital stock 20,000 Retained earnings 59,000 Service revenue 40,000 Interest expense 4,000 Operating expenses 17,000 Depreciation expense 11,000 Total $142,000 $142,000 Required: B. Calculate the 2016 ending balance in retained earnings.

Answers

Answer:

$67,000

Explanation:

Retained Earnings = Opening Balance + Profit for the Year - Dividends

where,

Profit for the Year = Sales -  Expenses

                              = $40,000 - (4,000 + 17,000 + 11,000)

                              = $8,000

therefore,

Retained Earnings = $59,000 + $8,000 = $67,000

4-55 A firm expects to install smog control equipment on the exhaust of a gasoline engine. The local smog control district has agreed to pay to the firm a lump sum of money to provide for the first cost of the equipment and maintenance during its 10-year useful life. At the end of 10 years the equipment, which initially cost $10,000, is valueless. The firm and the smog control district have agreed that the following are reasonable estimates of the end-of-year maintenance costs: Year 1 2 3 4 5 $75 100 125 150 175 Year 6 7 8 9 10 $200 225 250 275 300 Assuming interest at 6% per year, how much should the smog control district pay to the firm now to provide for the first cost of the equipment and its maintenance for 10 years

Answers

Answer:

the  amount that should be paid is $11,292

Explanation:

The computation of the amount that should be paid is shown below:

Present worth is

= $10,000 + $75(P/A, 6%, 10) + $25(P/G, 6%, 10)

= $10,000 + $75 × 7.3601 + $25 × 29.6023

= $11,292

Hence, the  amount that should be paid is $11,292

We simply applied the above calculation

______ says that the quantity demanded of a good folls when the price of 1 point the good rises.

A) The Law of Supply

B) The Law of Demand

C) Market Structure

D) Market Equilibrium​​

Answers

Answer:

A) The Law of Supply

Explanation:

The answer would be A. The law of supply! :)

Atlas Long-Haul Transportation is considering installing Valutemp temperature loggers in all of its refrigerated trucks for monitoring temperatures during transit. If the systems will reduce insurance claims by $100,000 in each of the next 2 years, how much should the company be willing to spend now if it uses an interest rate of 12% per year

Answers

Answer:

The amount the company should be willing to spend now is $169,005.10.

Explanation:

This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value or the amount the company should be willing to spend now =?

P = Annual insurance claim = $100,000

r = Interest rate = 12%, or 0.12

n = number of years = 2

Substitute the values into equation (1) to have:

PV = $100,000 * ((1 - (1 / (1 + 0.12))^2) / 0.12)

PV = $100,000 * 1.69005102040816

PV = $169,005.10

Therefore, the amount the company should be willing to spend now is $169,005.10.

Apr. 2 Purchased $4,600 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point.
3 Paid $300 cash for shipping charges on the April 2 purchase.
4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $600.
17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise.
18 Purchased $8,500 of merchandise from First Corp. with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination.
21 After negotiations, received from Frost a $500 allowance toward the $8,500 owed on the April 18 purchase.
28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.

Required:
Prepare journal entries to record the above transactions for a retail store. Assume a perpetual inventory system.

Answers

Answer:

Apr-02

Dr Purchase $ 4,600

Cr Accounts payable-Lyon $ 4,600

Apr-03

Dr Transportation - in $ 300

Cr Cash $ 300

Apr-04

Dr Accounts payable-Lyon $ 600

Cr Purchase returns & Allowances $ 600

Apr-17

Dr Accounts payable-Lyon $ 4,000

Cr Purchase discount$ 80

Cr Cash $ 3,920

Apr-18

Dr Purchase $ 8,500

Cr Accounts payable-Frist corp. $ 8,500

Apr-21

Dr Accounts payable-Frist corp. $ 500

Cr Purchase returns & Allowances $ 500

Apr-28

Dr Accounts payable-Frist $8,000

Cr Purchase discount$ 160

Cr Cash $7,840

Explanation:

Preparation of the journal entries to record the above transactions for a retail store. Assume a perpetual inventory system.

Apr-02

Dr Purchase $ 4,600

Cr Accounts payable-Lyon $ 4,600

(Being To record purchase merchandise from Lyon company )

Apr-03

Dr Transportation - in $ 300

Cr Cash $ 300

(Being To record shipping charges paid on above purchase )

Apr-04

Dr Accounts payable-Lyon $ 600

Cr Purchase returns & Allowances $ 600

(Being To record purchase return to Lyon company )

Apr-17

Dr Accounts payable-Lyon $ 4,000

($4,600 -$600)

Cr Purchase discount$ 80

{($4600 - $600)* 2% }

Cr Cash $ 3,920

($ 4,000 -$ 80 )

(Being To record cash paid to Lyon company for above purchase )

Apr-18

Dr Purchase $ 8,500

Cr Accounts payable-Frist corp. $ 8,500

(Being To record purchase merchandise from Frist corp. )

Apr-21

Dr Accounts payable-Frist corp. $ 500

Cr Purchase returns & Allowances $ 500

(Being To record received allowance on above purchase)

Apr-28

Dr Accounts payable-Frist $8,000

($8,500 -$500)

Cr Purchase discount$ 160

{($8,500 -$500)*2%}

Cr Cash $7,840

($ 8,000 -$ 160 )

(Being To record cash paid to Frist corp. for above purchase )

Which of the following activities is an example of using an intranet to gather
information?
A. A salesperson checks a customer's order status, posted by the
production department.
B. A marketing researcher reads the comments posted by
consumers on a social media website.
C. A marketing manager uses a news feed to get links to articles
about industry-related events each day.
D. A marketing manager looks up information about where a
retailer's stores are located on the retailer's website.
SUBMIT

Answers

Answer:

A. A salesperson checks a customer's order status, posted by the production department.

Explanation:

In the A answer it is an order status posted by the production department but does not state any external sources or websites. So you have to assume the action is done within the company network or "Intranet"

In the examples B through D there are references made to external sources like: social media website, news feed, and a retailer's website.

A salesperson checks a customer's order status, posted by the production department is an example of using an intranet to gather information.

What do you mean by salesperson?

Simply said, a sales representative promotes a company's brand while selling their goods or services. From the initial lead outreach until the actual purchase, they manage client connections and function as the primary point of contact.

It is the perfect career if you want to be in control of your career because it is mostly performance-driven, meaning how well you sell directly effects how much money you earn.

One of the various careers you might apply for with a business degree is a sales representative position. Everything you need to know about this career path is outlined here.

All stages of the sales process involve a sales representative having direct consumer interactions. They are in charge of determining a customer's needs, making suitable product or service recommendations, and making sure they have a great experience from beginning to end.

Sales representatives occasionally make cold calls to leads they find in company directories or through customer recommendations.

Learn more about salesperson, here

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Investment X offers to pay you $5,200 per year for eight years, whereas Investment Y offers to pay you $7,300 per year for five years. Calculate the present value for Investment X and Y if the discount rate is 5 percent. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))
Present value Investment X $ Investment Y $ Calculate the present value for Investment X and Y if the discount rate is 15 percent. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Investment X:

Annual payment= $5,200 per year for eight years

Investment Y;

Annual payment= $7,300 per year for five years

Discount rate= 15%

To calculate the present value, first, we determine the future value. Then the present value.

FV= {A*[(1+i)^n-1]}/i

A= annual payment

PV= FV/(1+i)^n

Investment X:

FV= {5,200*[(1.15^8) - 1]} / 0.15

FV= $71,379.46

PV= 71,379.46/1.15^8

PV= $23,334.07

Investment Y:

FV= {7,300*[(1.15^5) - 1]} / 0.15

FV= $49,219.38

PV= 49,219.38/1.15^5

PV= $24,470.73

Question 1 of 10
If a product lacks necessary instructions, it is a(n)
product.
A. defective
B. express warranty
C. limited warranty
D. extended warranty
What is the answer to this

Answers

a defective because it doesnt show to build all the wad

For the entries below, identify the account to be debited and the account to be credited. Indicate which of the accounts is the income statement account and which is the balance sheet account. Assume the company records prepayments of expenses in asset accounts, and cash receipts of unearned revenues in liability accounts. Entry to record consulting services performed but not yet billed or recorded. Entry to record service revenues performed but not yet billed or recorded. Entry to record rent expense incurred but not yet paid. Entry to record expiration of prepaid rent. Entry to record supplies used as supplies expense.

Answers

The accounts to be debited are:

A) Entry to record consulting services performed but not yet billed is debited to Accounts Receivable. This is a balance sheet item. In balance sheets, Accounts receivables are listed as assets. To increase assets in the balance sheet, you debit. To decrease it, you credit. Liabilities on the other hand are increased by crediting and decreased by debiting the same.

B) Entry to record service revenues performed but not yet billed or recorded is debited to Accounts Receivable. This also follows the same format in A above.


C) Entry to record rent expense incurred but not yet paid is credited to Accounts payable. This is also a balance sheet item. Recall the principle in A above.

D) Entry to record expiration of prepaid rent: This is an Income statement posting. Given that the rent was paid for but now expired that is, unusable, it, therefore, is an expense. The expense account will be credited.

E) Entry to record supplies used as supplies expense is credited to Supplies Expenses account. This is an income statement account. According to the principle of double-entry, you debit the receiver and credit the giver.

See the link below for more about Accounting Entries:

https://brainly.com/question/14279491

Answer:a.accounts receivable (balance sheet)

a. service rev (income statement)

b.acc receivable(balance)

b.service rev(income)

c.rent expense(income)

c. rent payable(balance)

d.rent expense(income)

d.prepaid rent (balance)

e.supp expense(income)

e.supplies(balance)

Explanation:

On January 1, Mitzu Co. pays a lump-sum amount of $2,750,000 for land, Building 1, Building 2, and Land Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $796,500, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $413,000 and is expected to last another 14 years with no salvage value. The land is valued at $1,740,500. The company also incurs the following additional costs. Cost to demolish Building 1 $ 346,400 Cost of additional land grading 193,400 Cost to construct Building 3, having a useful life of 25 years and a $398,000 salvage value 2,262,000 Cost of new Land Improvements 2 having a 20-year useful life and no salvage value 168,000 Problem 8-3A Part 2 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1.

Answers

Answer:

January 1, 202x

Dr Land 2,162,109

Dr Building 2,  742,626

Dr Building 3, 2,262,000

Dr Land improvement 1, 385,065

Dr Land improvement 2, 168,000

    Cr Cash 5,719,800

Explanation:

total purchase cost $2,750,000

Building 2 = $796,500

Land improvement 1 = $413,000

Land = $1,740,000

total = $2,949,500

proportional purchase cost building 2 = $2,750,000 x $796,500/$2,949,500 = $742,626

proportional purchase cost land = $2,750,000 x $1,740,000/$2,949,500 = $1,622,309

proportional purchase cost land improvements 1 = $2,750,000 x $416,000/$2,949,500 = $385,065

additional costs to land = $346,400 + $193,400 = $539,800

additional building 3 = $2,262,000

additional land improvement 2 $168,000

January 1, 202x

Dr Land 2,162,109

Dr Building 2,  742,626

Dr Building 3, 2,262,000

Dr Land improvement 1, 385,065

Dr Land improvement 2, 168,000

    Cr Cash 5,719,800

Use the information in the adjusted trial balance to prepare (a) the income statement for the year ended December 31; (b) the statement of retained earnings for the year ended December 31 [Note: Retained Earnings at December 31 of the prior year was $284,220]; and (c) the balance sheet as of December 31.

Answers

Question Completion:

The adjusted trial balance for Chiara Company as of December 31 follows.

                                                                  Debit    Credit

Cash                                                        $182,200

Accounts receivable                                   51,500

Interest receivable                                      21,000

Notes receivable (due in 90 days)          169,000

Office supplies                                           15,500

Automobiles                                             175,000

Accumulated depreciation-Automobiles                $70,000

Equipment                                               142,000

Accumulated depreciation-Equipment                     19,000

Land                                                         85,000

Accounts payable                                                      98,000

Interest payable                                                        50,000

Salaries payable                                                         16,000

Unearned fees                                                          30,000

Long-term notes payable                                        152,000

Common stock                                                           51,580

Retained earnings                                                   284,220

Dividends                                                48,000

Fees earned                                                           524,000

Interest earned                                                         34,000

Depreciation expense-Automobiles     27,500

Depreciation expense-Equipment         18,500

Salaries expense                                  190,000

Wages expense                                     44,000

Interest expense                                   36,200

Office supplies expense                       35,800

Advertising expense                             60,000

Repairs expense-Automobiles             27,600

Totals                                               $1,328,800 $1,328,800

Answer:

CHIARA COMPANY

a) Income Statement For Year Ended December 31

Fees earned                                                         $524,000

Interest earned                                                         34,000

Total revenue                                                      $558,000

Depreciation expense-Automobiles     27,500

Depreciation expense-Equipment         18,500

Salaries expense                                  190,000

Wages expense                                     44,000

Interest expense                                   36,200

Office supplies expense                       35,800

Advertising expense                             60,000

Repairs expense-Automobiles             27,600

Total expenses                                                   $ 439,600

Net income                                                            $118,400

CHIARA COMPANY

2. Statement of Retained Earnings For Year Ended December 31

Retained earnings, Dec.31 prior year        $284,220

Add: Net income                                             118,400

                                                                      402,620

Less: Dividends                                               48,000

Retained earnings, Dec. 31 current year  $354,620

CHIARA COMPANY

3. Balance Sheet December 31

Assets

Current assets:

Cash                                                        $182,200

Accounts receivable                                   51,500

Interest receivable                                      21,000

Notes receivable (due in 90 days)          169,000

Office supplies                                           15,500   $439,200

Long-term assets:

Automobiles                         175,000

Accumulated depreciation   70,000     105,000

Equipment                           142,000

Accumulated depreciation   19,000     123,000

Land                                                        85,000     $313,000

Total assets                                                            $752,200

Liabilities + Equity

Current liabilities:

Accounts payable                              $98,000

Interest payable                                   50,000

Salaries payable                                   16,000

Unearned fees                                    30,000      $194,000

Long-term notes payable                                        152,000

Total liabilities                                                       $346,000

Equity:

Common stock                                  $51,580

Retained earnings                            354,620    $406,200

Total equity Total liabilities and equity              $752,200

Explanation:

The financial statements above are prepared from the adjusted trial balance.  The revenue items (temporary accounts) are closed to the income statement, while the assets, liabilities, and equity accounts (permanent items) are closed to the balance sheet.  The Statement of retained earnings links the income statement and the balance sheet through the adjustments to the net income and retained earnings.

A company has $14,500,000 in taxable income. Consider the following corporate marginal tax rates: Taxable income ($) Tax rate 0- 50,000 15% 50,001- 75,000 25% 75,001- 100,000 34% 100,001- 335,000 39% 335,001- 10,000,000 34% 10,000,001- 15,000,000 35% 15,000,001- 18,333,333 38% 18,333,334+ 35% Attempt 1/10 for 10 pts. Part 1 What is the marginal tax rate for the company?

Answers

Answer: 35%

Explanation:

The marginal corporate tax rate is the added tax amount that a company pays for every additional dollar that it makes as income.

It is given in ranges which show the rate to be paid for the amount of income earned by the company.

This company earned $14,500,000 in taxable income and so will fall under the 10,000,001- 15,000,000 bracket which means that their marginal tax rate is 35%.

The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.85, without affecting either sales or net income. Assuming that inventories are sold off and not replaced to get the current ratio to the target level, and that the funds generated are used to buy back common stock at book value, by how much would the ROE change

Answers

Answer:

4.50%

Explanation:

Note: Question is incomplete but very similar one is attached as picture below

Current ROE = Net Income / Equity = $21,000 / $280,000 = 7.50%

Current Inventory = $210,000

Target Current ratio = 2.70

1. Current assets at target Current ratio = Current Liabilities * Target current ratio = $70000 * 2.70 = $189,000

2. Reduction in Inventories = Present Current assets - Current assets under target current ratio

Reduction in Inventories = $14000 + $70000 + $210000 - $189000

Reduction in Inventories = $105000

3. Reduction on common equity using sale of inventory = Current Equity - reduction

Reduction on common equity using sale of inventory = $280,000 - $105,000

Reduction on common equity using sale of inventory = $175,000

4. Change in ROE = New ROE - Current ROE

Change in ROE = [21000 / 175000] - 7.50%

Change in ROE = 12% - 7.50%

Change in ROE = 4.50%

Bravo Industries intends to retire $950,000 in short-term debt using proceeds from the sale of 30,000 shares of common stock. The stock sells for $25 per share. How much of its short-term debt can Bravo exclude from current liabilities if the sale occurs after the balance sheet date but before the balance sheet issue

Answers

Answer:

the amount that should be excluded from the current liabilities is $750,000

Explanation:

The computation of the amount that should be excluded from the current liabilities is shown below;

= Number of shares in the common stock × selling price per share

= 30,000 shares × $25

= $750,000

Hence, the amount that should be excluded from the current liabilities is $750,000

Two manufacturing firms, located in cities 90 miles apart, both send their trucks four times a week to the other city full of cargo and return empty. Each driver costs $275 per day with benefits (the round trip takes all day) and each firm has truck operating costs of $1.30 a mile. How much could each firm save weekly if each sent its truck twice a week and hauled the other firm's cargo on the return trip

Answers

Answer: $1,018

Explanation:

Cities are 90 miles apart so a roundtrip is 180 miles which means that the operating cost per trip is:

= 1.30 * 180

= $234

Total cost per trip = Divers cost + operating cost

= 275 + 234

= $509

Four trips are made per week so total cost is:

= 509 * 4

= $‭2,036‬

If each sent its truck twice a week and hauled the other firm's cargo on the return trip then savings would be:

= Cost of 4 trips - cost of 2 trips

= 2,036 - (509 * 2)

= $1,018

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