How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answers to one decimal place.

Answers

Answer 1

Answer: See explanation

Explanation:

You didn't give a complete question as there are no figures attached but I saw a question online which I think is the complete question. Below are the answers:

1. After tax interest in 2010

= (1 - t) × Interest

= (1 - 40%) × 120,000,000

= (1 - 0.4) × 120,000,000

= 0.6 × 120,000,000

= $72,000,000

After tax interest in 2009

= (1 - t) × Interest

= (1 - 40%) × 100,000,000

= (1 - 0.4) × 100,000,000

= 0.6 × 100,000,000

= $60,000,000

2. Net debt repayment in 2010

= (1,000,000,000 + 200,000,000) - (1,100,000,000 + 384,000,000)

= 1,200,000,000 - 1,484,000,000

= -284,000,000.

3. The RCF used for common dividend in 2009 = $200,000,000

The RCF used for common dividend in 2009 = $220,000,000

4. Net stock repurchase 2010

= $110,000,000 - $100,000,000

= $10,000,000


Related Questions

Problem 9-3 Withholding Methods (LO 9.1) Sophie is a single taxpayer. For the first payroll period in July 2020, she is paid wages of $2,200 monthly. Sophie claims one allowance on her pre-2020 Form W-4. Click here to access the withholding tables. IRS Publication 15-T, Federal Income Tax Withholding Method Pay period 2020 Allowance Amount Weekly $ 83 Biweekly 165 Semimonthly 179 Monthly 358 Quarterly 1,075 Semiannually 2,150 Annually 4,300 Round intermediate computations and your final answer to two decimal places. a. Use the percentage method to calculate the amount of Sophie's withholding for a monthly pay period. Sophie's withholding: $fill in the blank 276f67fd3f97003_1 b. Use the wage bracket method to determine the amount of Sophie's withholding for the same period. $fill in the blank 92701d098054043_1 c. Use the percentage method assuming Sophie completed a 2020 Form W-4 and checked only the single box in Step 1(c). $fill in the blank 75763bf84f9d024_1 d. Use the wage bracket method using the same assumptions in part c of this question. $fill in the blank 73d4ce04b013fc1_1

Answers

Can you show like a picture?

l Englehard purchases a slurry-based separator for the mining of clay that costs $700,000 and has an estimated useful life of 10 years, a MACRS-GDS property class of 7 years, and an estimated salvage value after 10 years of $75,000. It was fi nanced using a $200,000 down payment and a loan of $500,000 over a period of 5 years with interest at 10%. Loan payments are made in equal annual amounts (principal plus interest) over the 5 years. a. What is the amount of the MACRS-GDS depreciation taken in the 3rd year

Answers

Answer:

The amount of the MACRS-GDS depreciation taken in the 3rd year is $122,430.

Explanation:

The amount of the MACRS-GDS depreciation taken in the 3rd year can be calculated as follows:

Cost of the slurry-based separator = $700,000

Third year depreciation rate for a MACRS-GDS property class of 7 years from the MACRS-GDS table = 17.49%

MACRS-GDS depreciation in the 3rd year = $700,000 * 17.49% = $122,430

Therefore, The amount of the MACRS-GDS depreciation taken in the 3rd year is $122,430.

On July 1, 2015, Karen Company purchased equipment for $325,000; the estimated useful life was 10 years and the expected salvage value was $40,000. Straight-line depreciation is used. On July 1, 2019, economic factors cause the market value of the equipment to decrease to $90,000. On this date, Karen evaluates if the equipment is impaired and estimates future cash flows relating to the use and disposal of the equipment to be $195,000.

Required:
a. Is the equipment impaired at July 1, 2019? Explain.
b. If the equipment is impaired at July 1, 2019, calculate the amount of the impairment loss.
c. If the equipment is impaired at July 1, 2019, prepare the journal entry to record the impairment Bidings Goodwil komat kumulat loss.

Answers

Answer:

Karen Company

a. The equipment is impaired at July 1, 2019 because its projected future cash flows of $195,000 are less than its current carrying value of $211,000.

b. The amount of the impairment loss is:

= $16,000.

c. Journal Entry to record the impairment:

July 1, 2019:

Debit Impairment Loss $16,000

Credit Equipment $16,000

To record the estimated impairment loss.

Explanation:

a) Data and Calculations:

July 1, 2015:

Purchase cost of equipment = $325,000

Estimated useful life = 10 years

Expected salvage value = $40,000

Depreciable amount = $285,000 ($325,000 - $40,000)

Annual depreciation expense = $28,500 ($285,000/10)

July 1, 2019:

Total accumulated depreciation = $114,000 ($28,500 * 4 years)

Carrying amount of the equipment = $211,000 ($325,000 - $114,000)

Projected future cash flows = $195,000

Difference (Impairment loss) $16,000

You, being a supplier of steak dinners, opened your steak house. Assume the market-clearing price is $20 and the market clearing quantity is 500 for a steak dinner; (however, you do not have this information). You, the owner of the steak diner, decide to price your steak dinners at $15.00. You notice that when you do this you could have sold 650 steak dinners but are willing and able to sell only 400. Draw this situation on a graph. Put all numbers given on your graph.

RequireD:
a. What will happen in this market? Will there be a shortage or a surplus? Show this on your graph. What will happen in this market (assume there are no price controls).
b. A news released proved the inefficiency of hybrid vehicles. However, 2 months ago the number of dealers offering various hybrid models nearly tripled. How will this affect the price of hybrid vehicles?

Answers

Answer:

A) Shortage, B) Fall in Price

Explanation:

A] Market is at equilibrium where - downward sloping Market Demand (inversely related to price), & upward sloping Market Supply (directly related to price) - are equal &  these curves intersect each other.

Above condition gives us equilibrium price & quantity.

If market price < equilibrium price, as given case 15 < 20. Then, supply being directly related to price is lesser, demand being inversely related to price is higher. So, there is a situation of excess demand, ie shortage (graphically denoted by distance between demand & supply curve at actual price below equilibrium price)

B] Dealers of hybrid vehicles increase imply increase in supply of these vehicles, rightwards shift in the supply curve. This creates excess supply ie surplus of them. It implies that competition among sellers lead to fall in price of these hybrid vehicles.

Mercury Inc. purchased equipment in 2019 at a cost of $497,000. The equipment was expected to produce 580,000 units over the next five years and have a residual value of $33,000. The equipment was sold for $253,600 part way through 2021. Actual production in each year was: 2019 = 83,000 units; 2020 = 133,000 units; 2021 = 67,000 units. Mercury uses units-of-production depreciation, and all depreciation has been recorded through the disposal date.
Required:
1. Calculate the gain or loss on the sale.
2. Prepare the journal entry to record the sale.
3. Assuming that the equipment was instead sold for $280,000, calculate the gain or loss on the sale.
4. Prepare the journal entry to record the sale in requirement 3.

Answers

Answer:

1.

Gain or (Loss) on sale = (17000)  Loss

2.

Cash                                                     253600 Dr

Accumulated Depreciation               226400 Dr

Loss on Sale                                        17000 Dr

         Equipment                                         497000 Cr

3.

Gain or (Loss) on sale = 9400 Gain

4.

Cash                                                    280000 Dr

Accumulated Depreciation              226400 Dr

         Gain on Sale                                      9400 Cr

         Equipment                                         497000 Cr

Explanation:

We first need to calculate the carrying value of the equipment at the date of disposal. The carrying value is calculated as follows,

Carrying value = Cost  -  Accumulated depreciation

Depreciation 2019  =  (497000 - 33000) * 83000 / 580000

Depreciation 2019  = 66400

Depreciation 2020  =  (497000 - 33000) * 133000 / 580000

Depreciation 2020  = 106400

Depreciation 2021  =  (497000 - 33000) * 67000 / 580000

Depreciation 2021  = 53600

Carrying value = 497000  -  [ 66400 + 106400 + 53600 ]

Carrying value = $270600

1.

Gain or (Loss) on sale = Sales price  -  Carrying Value

Gain or (Loss) on sale = 253600  -  270600

Gain or (Loss) on sale = (17000)  Loss

2.

Cash                                                     253600 Dr

Accumulated Depreciation                226400 Dr

Loss on Sale                                        17000 Dr

         Equipment                                         497000 Cr

3.

Gain or (Loss) on sale = Sales price  -  Carrying Value

Gain or (Loss) on sale = 280000  -  270600

Gain or (Loss) on sale = 9400 Gain

4.

Cash                                                    280000 Dr

Accumulated Depreciation                226400 Dr

         Gain on Sale                                      9400 Cr

         Equipment                                         497000 Cr

Metlock, Inc. operates a retail operation that purchases and sells snowmobiles, among other outdoor products. The company purchases all inventory on credit and uses a periodic inventory system. The Accounts Payable account is used for recording inventory purchases only; all other current liabilities are accrued in separate accounts. You are provided with the following selected information for the fiscal years 2020 through 2023, inclusive.

2015 2016 2017 2018
Income Statement Data
Sales revenue $131,770 (e) $111,819
Cost of goods sold (a) 38,162 36,026
Gross profit 92,208 81,083 (i)
Operating expenses 86,550 (f) 71,903
Net income (b) $4,774 (j)
Balance Sheet Data
Inventory $17,680 (c) $19,992 (k)
Accounts payable 7,888 8,840 6,256 (l)
Additional Information
Purchases of inventory on account 35,210 (g) $32,708
Cash payments to suppliers (d) (h) 33,524

Required:
Compute the gross profit rate and the profit margin for each fiscal year.

Answers

Answer:

Metlock, Inc.

                                2020         2021        2022

Gross profit rate =     70%          68%           68%

Profit margin =        $5,658   $4,774      $3,890

Percentage margin     4.3%        4%           3.5%  

Explanation:

a) Data and Calculations:

                                     2020       2021        2022        2023

Income Statement Data

Sales revenue           $131,770     (e)          $111,819

Cost of goods sold        (a)         38,162     36,026

Gross profit                92,208     81,083         (i)

Operating expenses 86,550         (f)         71,903

Net income                    (b)         $4,774          (j)

Balance Sheet Data

Inventory                  $17,680         (c)       $19,992          (k)

Accounts payable        7,888      8,840       6,256

Additional information:

Purchases of inventory

 on account             35,210            (g)       $32,708

Cash payments to

 suppliers                    (d)                (h)         33,524

                                     2020       2021        2022        2023

Income Statement Data

Sales revenue           $131,770  119,245      $111,819

Cost of goods sold     39,562    38,162      36,026

Gross profit                 92,208    81,083      75,793

Operating expenses  86,550   76,309       71,903

Net income                 $5,658   $4,774      $3,890

Balance Sheet Data

Inventory                  $17,680         (c)       $19,992          (k)

Accounts payable        7,888      8,840       6,256

Additional information:

Purchases of inventory

 on account             35,210            (g)       $32,708

Cash payments to

 suppliers               27,322             (h)         33,524

a) = $131,770 - $92,208 = $39,562

b) = $92,208 - 86,550 = $5,658

c) =

d) = $35,210 - 7,888 = $27,322

e) = $38,162 + 81,083 = $119,245

f = $81,083 - 4,774 = $76,309

i) = $111,819 - 36,036 = $75,793

j) = $75,793 - 71,903 = $3,890

                                     2020       2021        2022

Gross profit rate = Gross profit/Sales * 100

Gross profit                 92,208    81,083       75,793

Sales revenue           $131,770  119,245      $111,819

Gross profit rate =     70%          68%           68%

Profit margin =            $5,658   $4,774       $3,890  

Percentage margin = Net Income/Sales * 100

                                     4.3%          4%             3.5%

                         

Wildhorse Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis. Item No. Quantity Cost per Unit Estimated Selling Price Cost to Complete and Sell 1320 1,400 $3.78 $5.31 $1.89 1333 1,100 3.19 4.01 1.18 1426 1,000 5.31 5.90 1.65 1437 1,200 4.25 3.78 1.59 1510 900 2.66 3.84 1.65 1522 700 3.54 4.60 0.94 1573 3,200 2.12 2.95 1.42 1626 1,200 5.55 7.08 1.77 From the information above, determine the amount of Wildhorse Company inventory.

Answers

Answer:

Wildhorse Company

The amount of the inventory is:

= $30,496.

Explanation:

a) Data and Calculations:

Item No. Quantity    Cost per   Estimated   Cost to  NRV  LCNRV Inventory

                                   Unit      Selling Price     Sell                              Value

1320         1,400         $3.78       $5.31           $1.89   $3.42  $3.42    $4,788

1333          1,100            3.19         4.01              1.18      2.83    2.83        3,113

1426        1,000            5.31         5.90            1.65      4.25    4.25      4,250

1437        1,200            4.25         3.78            1.59      2.19     2.19      2,628

1510          900            2.66         3.84            1.65      2.19     2.19        1,971

1522         700            3.54         4.60           0.94      3.66    3.54       2,478

1573      3,200             2.12         2.95            1.42      1.53     1.53       4,896

1626      1,200            5.55         7.08             1.77      5.31     5.31       6,372

Inventory value =                                                                            $30,496

g Suppose a central bank wants to increase its international reserves without changing the domestic money supply. It will Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a make an unsterilized purchase of foreign bonds. b make an unsterilized sale of foreign bonds. c make a sterilized purchase of foreign bonds. d make a sterilized sale of foreign bonds.

Answers

Answer:

c. make a sterilized purchase of foreign bonds.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.

Bonds are generally debts, which may be floated in different ways with respect to the issuer of the bond and its type. Bonds are used by government and corporate institutions to borrow money with interest and they also have to pay for the face value of the bonds at maturity.

The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.

In Economics, bonds could either be issued at discount or premium. A bond that is being issued at a discount has its stated rate lower than the market interest rate, on the specific date of issuance while a bond that is issued at a premium, has its stated rate higher than the market interest rate on the specific date of issuance.

Hence, a central bank can increase its international reserves without changing the domestic money supply by making a sterilized purchase of foreign bonds.

An organization whose capacity is on that portion of the average unit cost curve that falls as output rises: has a facility that is below optimum operating level and should build a larger facility. has a facility that is above optimum operating level and should reduce facility size. is suffering from diseconomies of scale. has utilization higher than efficiency. has expected output higher than rated capacity

Answers

Answer:

has a facility that is below optimum operating level and should build a larger facility.

Explanation:

In the case when the organization whose capacity should be on the average unit cost curve where it would be decline when the output rises so this means that it has a facility i.e. lower than the optimal level of operation and should established the larger facility

Hence, the first option is correct

And, the other options would be incorrect

You send out 20,000 emails. Of those, 6% are opened. Of those, 9% click on a link to register for something. Of those who clicked the link, 30% complete the registration. How many people completed the registration?

Answers

i think the answer is 5132.4 people completed the registration

Maria works as a farmer in a rural area during a recession. She may

earn less money temporarily
have a variety of other job opportunities close by
ask for a tax exemption for two years
receive a salary increase yearly

Answers

Answer:

Maria will earn less money temporarily

Explanation:

Maria works as a farmer in a rural area during a recession will lead her to earn less money temporarily. The correct option is the first one.

What is recession ?

Recession refers to the time period in which thew trade declines and industrial activity reduces. Recession is identified by the fall in the GDP.

In the trade cycle there are four phases which are boom, recession, depression and recovery. At the time of the recession, there is a high rate of inflation in the market and people stops purchasing the product.

It leads to the flow in economic activities. In the case of the Maria due to decrease in the level of production she will produce less and it will lead to ear her less money.

Learn more about economic activity here:

https://brainly.com/question/1155001

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On January 1 of this year, Shannon Company completed the following transactions (assume a 8% annual interest rate):

a. Bought a delivery truck and agreed to pay $61,400 at the end of three years.
b. Rented an office building and was given the option of paying $11,400 at the end of each of the next three years or paying $30,000 immediately.
c. Established a savings account by depositing a single amount that will increase to $92,800 at the end of seven years.
d. Decided to deposit a single sum in the bank that will provide 8 equal annual year-end payments of $41,400 to a retired employee (payments starting December 31 of this year.

Required:
a. What is the cost of the truck that should be recorded at the time of purchase? (Round your answer to nearest whole dollar.)
b. Which option for the office building results in the lowest present value?
c. What single amount must be deposited in this account on January 1 of this year? (Round your answer to nearest whole dollar.)
d. What single sum must be deposited in the bank on January 1 of this year?

Answers

Answer:

a. The cost of the truck that should be recorded at the time of purchase is:

= $48,741.

b. The option of paying $11,400 annually for 3 years results in a PV of $29,379, which is lower than $30,000 paid immediately.

c. The single amount that must be deposited in this account on January 1 of this year is:

= $54,148.

d. The single sum that must be deposited in the bank on January 1 of this year to provide 8 equal annual year-end payments of $41,400 to a retired employee is:

= $237,910.85

Explanation:

a) Data and Calculations:

a. Bought a delivery truck and agreed to pay $61,400 at the end of three years.

From an online financial calculator:

(# of periods)  3

I/Y (Interest per year)  8

PMT (Periodic Payment)  0

FV (Future Value)  $61400

Results

PV = $48,741.30

Total Interest $12,658.70

b. Rented an office building and was given the option of paying $11,400 at the end of each of the next three years or paying $30,000 immediately.

From an online financial calculator:

N (# of periods)  3

I/Y (Interest per year)  8

PMT (Periodic Payment)  $11,400

FV (Future Value)  0

Results

PV = $29,378.91

Sum of all periodic payments $34,200.00

Total Interest $4,821.09

c. Established a savings account by depositing a single amount that will increase to $92,800 at the end of seven years.

From an online financial calculator:

N (# of periods)  7

I/Y (Interest per year)  8

PMT (Periodic Payment)  0

FV (Future Value)  $92,800

Results

PV = $54,147.91

Total Interest $38,652.09

d. Decided to deposit a single sum in the bank that will provide 8 equal annual year-end payments of $41,400 to a retired employee (payments starting December 31 of this year.

From an online financial calculator:

N (# of periods)  8

I/Y (Interest per year)  8

PMT (Periodic Payment) $41,400

FV (Future Value)  0

Results

PV = $237,910.85

Sum of all periodic payments $331,200.00

Total Interest $93,289.15

Suppose a farmer in Georgia begins to grow peaches. He uses​ $1,000,000 in savings to purchase​ land, he rents equipment for ​$ a​ year, and he pays workers ​$ in wages. In​ return, he produces baskets of peaches per​ year, which sell for ​$ each. Suppose the interest rate on savings is percent and that the farmer could otherwise have earned ​$ as a shoe salesman. What is the​ farmer's economic​ profit? The peach farmer earns economic profit of ​$ nothing. ​(Enter your response as an​ integer.)

Answers

Answer:

$-675,000

Explanation:

here is the full question

Suppose a farmer in Georgia begins to grow peaches. He uses​$1,000,000 in savings to purchase​ land, he rents equipment for​$80,000 a​ year, and he pays workers ​$130,000 in wages. In​return, he produces 200,000 baskets of peaches per​ year, which sell for ​$3.00 each. Suppose the interest rate on savings is 3 percent and that the farmer could otherwise have earned ​$35,000 as a shoe salesman.

Economic profit = accounting profit - implicit cost

Accounting profit= total revenue - explicit cost

Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives

Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials

total explicit cost = (1,000,000 + $80,000 + $130,000) = $1,210,000

total revenue = price x output

$3 x 200,000 = $600,000

Accounting profit = $600,000 - $1,210,000 = $-610,000

implicit cost = amount he could have earned working as a sales man = $35,000

Interest on loan = 0.03 x 1,00,000 = 30,000

total = 35,000 + 30,000 = 65,000

economic profit = $-610,000 - 65,000 = $-675,000

The peach farmer earns economic profit of ​$

When the U.S. dollar strengthens against other currencies, a. an MNC's U.S. sales will probably decrease. b. an MNC's exports denominated in U.S. dollars will probably increase. c. an MNC's interest owed on foreign funds borrowed will probably increase. d. an MNC's exports denominated in foreign currencies will probably increase. e. all of the abo

Answers

Answer:

A

Explanation:

A bank has $50 million in assets, $47 million in liabilities and $3 million in shareholders' equity. If the duration of its liabilities are 1.3 and the bank wants to immunize its net worth against interest rate risk and thus set the duration of equity equal to zero, it should select assets with an average duration of _________.

Answers

Answer: 1.222

Explanation:

The Average duration can be derived from the formula:

Assets * Average Duration = Liabilities * Duration of Liabilities

Average Duration = (Liabilities * Duration of Liabilities) / Assets

= (47,000,000 * 1.3) / 50,000,000

= 61,100,000 / 50,000,000

= 1.222

On January 1, 2020, Blue Inc. had cash and common stock of $62,340. At that date, the company had no other asset, liability, or equity balances. On January 2, 2020, it purchased for cash $22,990 of debt securities that it classified as available-for-sale. It received interest of $4,480 during the year on these securities. In addition, it has an unrealized holding gain on these securities of $5,100 net of tax. Determine the following amounts for 2020: (a) net income, (b) comprehensive income, (c) other comprehensive income, and (d) accumulated other comprehensive income (end of 2020).

Answers

Answer:

(a) Net income = $3,000

(b) Comprehensive income = $7,000

(c) Other comprehensive income = $4,000

(d) Accumulated other comprehensive income = $4,000

Explanation:

This question is based on multi-step income statement. Therefore, some of the elements of the multi-step income statement are employed in answering this question.

(a) net income

This can be calculated as follows:

Net income = Operating income + Total other income and expense – Tax expense ………… (1)

Where, based on information in the question, we have:

Operating income = Not available = 0

Total other income and expense = Interest income = $3,000

Tax expense = Not available = 0

Substituting the values into equation (1), we have:

Net income = 0 + $3,000 – 0 = $3,000

(b) comprehensive income

This can be calculated as follows:

Comprehensive income = Net income + Other comprehensive income …... (2)

Where:

Net income = $3,000

Other comprehensive income = Unrealized holding gain on securities = $4,000

Substituting the values into equation (2), we have:

Comprehensive income = $3,000 + $4,000 = $7,000

(c) other comprehensive income

As already stated in part (b) above, we have:

Other comprehensive income = Unrealized holding gain on securities = $4,000

(d) accumulated other comprehensive income (end of 2020).

As there is no other income from the question, this implies that:

Accumulated other comprehensive income = Unrealized holding gain on securities = $4,000

1. $7,000 of merchandise inventory was ordered on September 2, 20092. $3,000 of this merchandise was received on September 5, 20093. On September 6, 2009, an invoice dated September 4, 2009, with terms of 3/10, net 30 for $3,250 which included a $250 prepaid freight cost, was received.4. On September 10, 2009, $800 of the merchandise was returned to the seller.Based on the above information, what would be recorded as the cash payment if the invoice is paid within the discount period

Answers

Answer:

The cash payment to be recorded is:

= $2,376.50.

Explanation:

a) Data and Calculations:

September 2, 2009: Merchandise order = $7,000

September 5, 2009: Merchandise received = $3,000

September 6, 2009: Freight-in                              250

Terms of trade 3/10, net 30

September 10, 2009: Return of merchandise     (800)

Total value of merchandise =                           $2,450

Cash discount (3% of $2,450) =                               73.50

Cash payment =                                                $2,376.50

b) The trade terms of 3/10, net 30 means that a discount of 3% is allowed when payment is made within 10 days of the purchase date or on or before September 11, 2009.  This amounts to $73.50.  Therefore, the net amount to be paid is $2,376.50 after deducting the calculated discount amount.

An airport needs a modern material handling system for facilitating access to and from a busy maintenance hangar. A​ second-hand system will cost​ $75,000. A new system with improved technology can decrease labor hours by​ 20% compared to the used system. The new system will cost​ $150,000 to purchase and install. Both systems have a useful life of five years. The market value of the used system is expected to be​ $20,000 in five​ years, and the market value of the new system is anticipated to be​ $50,000 in five years. Current maintenance activity will require the used system to be operated eight hours per day for 20 days per month. If labor costs​ $40 per hour and the MARR is​ 1% per​ month, which system should be​ recommended?

Answers

Answer:

The second hand machine should be chosen given that the NPV value is lower than that of the new system

Explanation:

cost of second hand system = $75,000

cost of  new system = $150,000

New system can decrease labor hours by 20%

number of useful life ( for both systems ) = 5 years

market value of second hand system after 5 years = $20,000

market value of new system after 5 years = $50,000

Second hand system can operate for 8 hours/day for 20 days = 8*20 = 160 hours per month = 1920 hours per year

labor cost = $40 per hour

MARR = 1% per month

Determine the system that should be recommended

we have to calculate the NPV for both options

for Option 1 ( second hand system )

labor cost = 40 * 1920 = $76800

cost of purchase = $75,000

MARR = 12% p.a.

residual value = $20000

First step : calculate the PV of maintenance cost = $76800× PVAF(12%, 5 years) = $276864

Next : calculate the PV of residual value =$20000× PVF(12%, 5th year)

= $11340

NPV = (75000 + 276864 - 11340 ) = $340,524

for Option 2 ( New Machine )

Labor cost = ( 1920 × 0.8 )hours ×40  = $61440

cost of machine = $150000

Pv of labor cost = 61440×3.605  = $221491.20

Residual value = $50,000

Hence ; PV of residual value = 50000 × 0.567 = $28350

Finally calculate the NPV = (150000+221491.20-28350) = $343,141.20

Logistics Solutions provides order fulfillment services for dot merchants. The company maintains warehouses that stock items carried by its dot clients. When a client receives an order from a customer, the order is forwarded to Logistics Solutions, which pulls the item from storage, packs it, and ships it to the customer. The company uses a predetermined variable overhead rate based on direct labor-hours.

In the most recent month, 185,000 items were shipped to customers using 8,000 direct labor-hours. The company incurred a total of $27600 in variable overhead costs. According to the company's standards, 0.04 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $3.50 per direct labor-hour.

Required:
a. What is the standard labor-hours allowed (SH) to ship 185,000 items to customers?
b. What is the standard variable overhead cost allowed (SH SR) to ship 185,000 items to customers?
c. What is the variable overhead spending variance?
d. What is the variable overhead rate variance and the variable overhead efficiency variance?

Answers

Answer:

Standard labor-hours allowed= 7,400 direct labor Hours.

The standard variable overhead cost= $ 25,900

Variable overhead spending variance =$400

Variable overhead rate variance =$400

Variable overhead efficiency variance=$2,100

Explanation

a.)  The standard labor-hours allowed (SH) to ship 185,000 items to customers

= 0.04 direct labor-hours  x 185,000= 7,400 direct labor Hours.

b). The standard variable overhead cost allowed to ship 185,000 items to customers=

standard labor-hours  SH ×  Standard Rate SR

7400  X $3.50= $ 25,900

c).  Variable overhead spending variance is calculated as

Actual Overhead Costs - Actual hours  x  Standard Rate  

 = $27600 -  8,000  x 3.50 = $27600 -28,000

  =$400

d1). Variable overhead rate variance =

Actual hours x Actual Variable Overhead Rate per Hour - Actual hours  Standard Variable Overhead Rate per Hour

Variable overhead rate variance =8000 x  (27600/8000) - 8000 x 3.50

8000 x 3.45 - 8000 x 3.50

27,600-28,000=$400

d2) Variable overhead efficiency variance= Actual Hours x Standard Rate - Standard Hours  x Standard Rate

8000 x 3.50 -7400 x 3.50

28,000 -25,900

=$2,100

Sensitivity analysis in the calculation of the adjusted present value (APV) allows the financial manager to Multiple Choice consider in advance actions that can be taken should an investment not develop as anticipated. more fully understand the implications of planned capital expenditures. all of the options analyze all of the risks (business, economic, exchange rate uncertainty, political, etc.) inherent in the investment.

Answers

Answer:

all of the options

Explanation:

The sensitivity analysis would work in the case when the adjusted present value permits the financial manager for the following reasons

1. It considered in advance actions that should be taken as an investment

2. The impacts of the planned capital expenditures

3. The analyze of all types of risk whether it is busines,  economical, etc that should be inherent in the investment

hence, it is all of the above

Changing a problem culture typically does not involve

a. altering the company's financial objectives
b. both symbolic and substantive actions by executives to implant new cultural behaviors
c. designing compensation incentives that boost the pay of teams and individuals who display the desired cultural behaviors and hit change resisters in the pocketbook
d. replacing old-culture managers with new-breed managers
e. using company gatherings and ceremonial occasions to praise individuals and groups that display the desired new cultural traits and behaviors

Answers

Answer:

a. altering the company's financial objectives.

Explanation:

The problem-solving process can be defined as the systematic approach used to identify and determine the solution to a particular problem.

The steps involved in the problem-solving process are;

1. Identify and define the problem: this is the first step to be taken in solving a problem. This is to ensure that, the focus is on the main issue or situation (goal) and all efforts is channeled in the right direction rather than the symptoms.

2. Gathering of information: this helps to consider the options available in solving a problem effectively.

3. Consider your options: this helps to compare the available and viable solutions to the problem.

4. Weigh disadvantages and evaluate a solution: you weigh the disadvantages of each solution, before choosing the one with the least disadvantages.

In Business management, changing a problem culture typically does not involve altering the company's financial objectives because the problems that are related to organisational culture are social and more closely related to the behavior and belief of the employees.

Does dyson company use the line extension?

Answers

Answer:yes

Explanation:

Line extinctions is making a product with the same brand and category type example different Dyson vacuums

Hope this helps

McDarrel's records $500 of accrued salaries on December 31. Three days later, on January 3, total salaries of $4,000 (including the $500 accrued at year end) are paid. Demonstrate the required journal entry on January 3 by selecting from the choices below. (Check all that apply.) Multiple select question. Salaries payable will be credited for $500. Salaries expense would be debited for $3,500. Salaries payable will be debited for $500. Cash would be credited for $4,000. Wages expense will be debited for $4,000.

Answers

Answer:

Salaries payable will be debited for $500

Salaries expense would be debited for $3,500

Cash would be credited for $4,000

Explanation:

Based on the information given the Required journal entry for Jan 3rd will be:

Dr Salaries Payable $500

Dr Salaries expense $3,500

($4,000-$500)

Cr Cash $4,000

Emerson Enterprises is constructing a building. Construction began in 2018 and the building was completed on December​ 31, 2018. Emerson made payments to the construction company of on July​ 1, on September​ 1, and on December 31. What is the amount of weightedaverage accumulated expenditures that provides the basis for determining capitalized​ interest? A. B. C. D.

Answers

Answer:

Explanation:

$1,050,000

Which of the following is NOT a correct statement about diversification? A) As Dr. Melton stated in class, most diversification benefits are realized with just 20 to 25 stocks. B) Diversification is the process of reducing the riskiness associated with individual assets by spreading an investment across numerous assets. C) There is no limit to the amount of risk that can be eliminated through diversification. D) Non-diversifiable risk is the only risk that matters to a diversified investor. E) None of the above.

Answers

Answer: C. There is no limit to the amount of risk that can be eliminated through diversification.

Explanation:

Diversification is referred to as the process of reducing the riskiness associated with individual assets such that an investment is spread across numerous assets.

All the options given in the question are correct about diversification except that "There is no limit to the amount of risk that can be eliminated through diversification".

There is a limit to the amount of risk that diversification can eliminate. We should note that the risk in the investment cannot be completely eliminated no matter how the economic agent diversifies their portfolio. Even though the risks are reduced, every stock are still affected by general market risks.

Jefferson Inc. (JI) is a relatively new company that wants to improve its employee rewards, compensation, and benefits. The company understands that there are effective reward systems that will motivate employees. However, JI management is not sure which would be the best for the company. Compensation, another important area, must also be improved so that it will satisfy all employees effectively. In addition, the company wants to create benefits to keep the employees not just satisfied, but also motivated. Yet another pressing issue is deciding on the training methods that are to be used to successfully teach the new employees.

JI believes that it will be on the right path if all of these changes can be successfully accomplished. The company plans to incorporate performance appraisals so it can be sure that the rewards, compensation, and benefits are effectively distributed. Refer to Jefferson, Inc. JI management must consider implementing the many different types of benefits. These include all of the following except :__________

a. insurance packages.
b. pension and retirement programs.
c. worker's compensation insurance.
d. Social Security.
e. profit sharing.

Answers

Answer:

E. Profit sharing

Explanation:

Employee benefits are the additional gains that employees enjoy in an organization in addition to their salaries.

There are different types of benefits that employers offer their employees.

Some of these are:

1. Medical benefits

2. Retirement benefits

3. Disability benefits

4. Insurance

5. Social security

E. T. C

Profit sharing is not an employee benefit so it is the odd 1 out of these options.

Suppose Nick would like to invest $10,000 of his savings.

One way of investing is to purchase stock or bonds from a private company.

Suppose TouchTech, a hand-held computing firm, is selling stocks to raise money for a new lab—a practice known as___________ finance. Buying a share of TouchTech stock would give Nick______________ the firm. In the event that TouchTech runs into financial difficulty, ______________will be paid first.

Suppose Nick decides to buy 100 shares of TouchTech stock.

Which of the following statements are correct?

a. Expectations of a recession that will reduce economy-wide corporate profits will likely cause the value of Nick's shares to decline.
b. The Dow Jones Industrial Average is an example of a stock exchange where he can purchase TouchTech stock.
c. An increase in the perceived profitability of TouchTech will likely cause the value of Nick's shares to rise.
d. Alternatively, Nick could invest by purchasing bonds issued by the government of Japan.

Assuming that everything else is equal, a bond issued by a government that is engaged in a civil war most likely pays a ___________ interest rate than a bond issued by the government of Japan.

Answers

Answer:

1. Suppose TouchTech, a hand-held computing firm, is selling stocks to raise money for a new lab—a practice known as___project__ finance. Buying a share of TouchTech stock would give Nick____equity interest in____ the firm. In the event that TouchTech runs into financial difficulty, _____bonds_____will be paid first.

2. Correct statements:

a. Expectations of a recession that will reduce economy-wide corporate profits will likely cause the value of Nick's shares to decline.

c. An increase in the perceived profitability of TouchTech will likely cause the value of Nick's shares to rise.

d. Alternatively, Nick could invest by purchasing bonds issued by the government of Japan.

3. Assuming that everything else is equal, a bond issued by a government that is engaged in a civil war most likely pays a ___higher__ interest rate than a bond issued by the government of Japan.

Explanation:

When Nick purchases stock in the private company, he invests in the equity of the company.  Project finance can be done through equity financing or debt financing.  Equity financing gives Nick an equity interest in the TouchTech and a share in the decision-making of the business, whereas debt financing pays a fixed amount of interest periodically without a share in the decision-making of the company.

Example of how this skill can make you valuable to potential employer of self and social awareness

Answers

Answer:Self-awareness can help improve your career because it makes it easier to understand how others see you. This is key for success. It's essential to be aware of the perceptions of higher-ups, of course, but it's also important to know how you come off when you're working in a leadership capacity.

Explanation: trust

The followings are the example of how this skill can make you valuable to a potential employer of self and social awareness:

recognizing your feelings and your emotions.Identify your main coping techniques.defining your own opinions independently of outside influences.putting your happiness and purpose first.recognizing your advantages and weaknesses.

What is Social Awareness?

The capacity to understand others' viewpoints and have empathy for them, even those from different cultures and origins. the capacity to perceive community resources and supports, as well as to comprehend social and ethical norms for behavior.

A more peaceful workplace can be achieved through developing your self-awareness so that you can interact with coworkers, direct reports, and superiors more effectively. You can view problems more objectively and consider your possible contribution to their development. You pay attention and live in the present.

Learn more about Social Awareness here:

https://brainly.com/question/9904853

#SPJ2

9. The NOI for a small income property is expected to be $150,000 for the first year. Financing will be based on a 1.2 DCR applied to the first year NOI, will have a 10 percent interest rate, and will be amortized over 20 years with monthly payments. The NOI will increase 3 percent per year after the first year. The investor expects to hold the property for five years. The resale price is estimated by applying a 9 percent terminal capitalization rate to the sixth-year NOI. Investors require a 12 percent rate of return on equity (equity yield rate) for this type of property. a. What is the present value of the equity interest in the property

Answers

Answer:

a. The present value of the equity interest in the property is:

= PV = $1,096,338

Explanation:

a) Data and Calculations:

Debt Coverage Ratio = 1.2

Debt interest = $150,000/1.2 = $125,000

Interest rate = 10%

Therefore, total financing or debt obtained = $125,000/10% = $1,250,000

NOI for the first year = $150,000

NOI for other years = 3% per year after the first year.

Holding period of property = 5 years

Therefore, expected NOIs for the second to fifth year are calculated as follows:

                 

Net operating income (NOI):

First Year  = $150,000      

Second Year = $154,500 ($150,000 * 1.03)

Third Year = $159,135 ($154,500 * 1.03)

Fourth Year = $163,909 ($159,135 * 1.03)    

Fifth Year = $168,826 ($163,909 * 1.03)

Sixth year NOI = $173,891 ($168,826 * 1.03)

Terminal capitalization rate = 9%

Resale price = NOI of the sixth year/Terminal cap rate

= $173,891/9% = $1,932,122

The present value of the equity interest in the property:

From an online financial calculator:

N (# of periods)  5

I/Y (Interest per year)  12

PMT (Periodic Payment)  0

FV (Future Value)  $1,932,122

Results

PV = $1,096,337.91

Total Interest $835,784.09

Robin, a middle management employee at a large, publicly traded company, becomes aware of accounting irregularities in financial reports (which are used internally and which also form the basis for the required filings with the Securities and Exchange Commission, as well as local and state regulators) submitted by his boss, Brooke, which suggest that Brooke has diverted $10,000.00 to the company's sustainability initiative rather than distributing the funds to the purchasing department budget as intended. The sustainability initiative has facilitated major improvements in local water quality standards and, as a result, the overall health of the community has markedly increased, at a sizeable savings of medical costs (approximately $50,000.00 in medical savings.)

Required:
What should Robin do?

Answers

Answer:

From a strict ethical point of view, Robin has the responsibility to report Brooke for the misappropriation of funds to the Sustainability Initiative as irregularities in financial reports can land the company into serious trouble with regulators.

Continuing further, Robin can report this issue to the company's compliance department or Human resource officer or whoever else is delegated with dealing with such scenarios.

Before Robin does this however, he should properly think about it using some ethical theories such as Utilitarianism. Under this theory, the end results are all that matters. Is Brookes helping by diverting funds, evidence suggests that Brooke is because the initiative has improved the lives of the community.

However, the money that was to go to the Purchasing department would have led to more inventory being purchased and the company therefore making more sales. Brooke's actions could therefore be hurting the company.

Robin should weigh this as well the potential problems the company could get into by submitting irregular statements against the positive effects of Brooke's actions. If Robin decides that the good of the company comes before the good of the community, he should report to the relevant officer. If not, Robin can keep quiet and hope that the regulators show leniency when the irregularities are discovered based on the positive effects it brought.

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