Answer and Explanation:
The journal entries are given below:
a. Raw materials inventory A/c Dr $102,000
To Accounts payable A/c $102,000
(To record raw material purchased on credit)
b. Work in progress inventory A/c Dr $42,500
To Raw materials inventory A/c $42,500
(To record used in production)
Factory overhead A/c Dr $15,000
To Raw materials inventory A/c $15,000
(To record indirect material used
c. Work in progress inventory A/c Dr $37,000
Factory overhead A/c Dr $18,000
To cash A/c $55,000
(To record factory payroll is paid in cash)
d. Factory overhead A/c Dr $8,375
To Cash A/c $8,375
(To record other actual overhead is paid for cash)
e. Work in progress inventory A/c Dr $46,250 ($37,000 × 125%)
To Factory overhead A/c $46,250
(To record applied overhead)
f. Finished goods inventory A/c Dr $72,600
To Work in progress inventory A/c $72,600
(To record transferred goods)
g1. Cost of goods sold A/c Dr $72,600
To Finished goods inventory A/c $72,600
(To record the job cost)
g2. Accounts receivable A/c Dr $104,000
To Sales A/c $104,000
(To record jobs are sold on account)
Exercise 2-6 Analyzing account entries and balances LO A1 Use the information in each of the following separate cases to calculate the unknown amount. Corentine Co. had $152,000 of accounts payable on September 30 and $132,500 on October 31. Total purchases on account during October were $281,000. Determine how much cash was paid on accounts payable during October. On September 30, Valerian Co. had a $102,500 balance in Accounts Receivable. During October, the company collected $102,890 from its credit customers. The October 31 balance in Accounts Receivable was $89,000. Determine the amount of sales on account that occurred in October. During October, Alameda Company had $102,500 of cash receipts and $103,150 of cash disbursements. The October 31 Cash balance was $18,600. Determine how much cash the company had at the close of business on September 30.
Answer:
a) Corentine Co.
Cash paid to suppliers:
Beginning balance, September 30 $152,000
Purchases $281,000
Ending balance, October 31 $132,500
Cash paid $300,500
b) Valerian Co.
Sales to customers on account:
Ending balance, October 31 $89,000
Cash collected $102,890
Beginning balance, September 30 $102,500
Sales $89,390
c) Alameda Company
Cash balance on September 30:
Cash disbursements $103,150
Balance, October 31 $18,600
Cash receipts $102,500
Balance, Sept. 30 $19,200
Explanation:
The unknown amount for each case is the difference between the opening balance, the transactions for the month of October and closing balance.
The DUPONT model is useful when examining bank performance because:Select one:a. The ROA equals ROE times Leverage Multiplier.b. The net margin equals the asset utilisation.c. Banks have a similar financial structure as non-finance firms.d. Banks hold a lot of debt and have a small mark up, and the DuPont illustrates this relationship.
Answer:
d. Banks hold a lot of debt and have a small mark up, and the DuPont illustrates this relationship.
Explanation:
The Dupont model is basically a more complex return on equity (ROE) analysis. It breaks down ROE using net profit, asset turnover and equity multiplier (or financial leverage) to focus on the financial performance of businesses.
ROE = profit margin x asset turnover x financial leverage
When firms have higher financial leverage, ROE will increase, but risk will also increase, resulting in higher cost of equity.
Banks tend to have a much higher financial leverage than most companies since their business is to take deposits (liabilities) and then make loans to other clients (assets). E.g. commercial banks on average have a debt to equity ratio of 2, while investment banks have a D/E ratio of 3 or more. That means that for every $1 of equity, investment banks have $3 of debt.
The Dupont analysis is useful for understanding whether a company's performance is based on its efficiency (high profit margin or asset turnover) or its financial leverage. If a high ROE is based solely on a high financial leverage, then the company is considered a risky investment.
four problems associated with money
Answer:
Hmm.
Explanation:
Problems making ends meet
Accumulating too much debt.
Making poor purchasing and investing decisions.
Being unable to enjoy money.
(Source; USATODAY.com)
Which order is correct for the marketing framework?
Answer:
5C's, STP, 4P's
Explanation:
The marketing framework is a template that has instructions for the carrying out of marketing plan. Such a framework enables you to deliver the correct content to the right people, by using the right channels, at an appropriate time to attain your important or core marketing goals.
The correct order is 5C's, STP, 4P's.
Thank you!
Suppose the following information is available for Callaway Golf Company for the years 2022 and 2021. (Dollars are in thousands, except share information.) 2022 2021 Net sales $ 1,124,000 $ 1,130,500 Net income (loss) 85,062 69,184 Total assets 855,338 838,078 Share information Shares outstanding at year-end 70,000,000 71,770,000 Preferred dividends 0 0 There were 78,630,000 shares outstanding at the end of 2020. (a) What was the company’s earnings per share for each year?
Answer:
2021
Earnings per share = ( Net Income - Preferred dividends) / Weighted average number of shares
Weighted average number of shares = (Beginning share + Ending shares ) / 2
= (78,630,000 + 71,772,000) / 2
= $75,201,000
Earnings per share = 69,184,000 / 75,201,000
= $0.92
2022
Weighted average number of shares = (Beginning share + Ending shares ) / 2
= (71,772,000 + 70,000,000) / 2
= $70,886,000
Earnings per share = 85,062,000 / 70,886,000
= $1.20
(a) The company’s earnings per share for each year is $0.92 and $1.20.
Calculation of earning per share for each year:For 2021
Earnings per share = ( Net Income - Preferred dividends) ÷ Weighted average number of shares
here
Weighted average number of shares = (Beginning share + Ending shares ) ÷ 2
= (78,630,000 + 71,772,000) ÷ 2
= $75,201,000
Earnings per share = 69,184,000 ÷ 75,201,000
= $0.92
For 2022
The weighted average number of shares = (Beginning share + Ending shares ) ÷ 2
= (71,772,000 + 70,000,000) ÷ 2
= $70,886,000
Earnings per share = 85,062,000 ÷ 70,886,000
= $1.20
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Shirley's time sitting at her desk was interrupted when the human resources manager burst into her office with a particularly vexing problem - customer service ratings had been falling over the last quarter. The human resources manager explained that they were behind on training programs for their workers. Shirley assembled a task force consisting of the brightest minds in the organization and gave them a charge - to look at the previous quarter's issues and to develop training courses over the next 48 months to solve those issues. What roadblock is Shirley confronted with while trying to identify the true problem
Answer: conflicting viewpoints
Explanation: A roadblock is an obstacle or impediment. Shirley is confronted with conflicting viewpoints as a roadblock while trying to determine the true problem she is faced with. She probably holds opposing or contradictory perspectives to that of the Human Resource manager which explains the reason for assembling a team to specifically " look at the previous quarter's issues" and "to develop training courses over the next 48 months to solve those issues". Conflicting viewpoints is one of the problems to quantitative analysis which is a scientific approach to decision making. Others include: outdated solutions, understanding the model, beginning assumptions etc.
The supply of seats for an economics class at 10 a.m. is the same as the supply of seats for the same class at noon. Every student who wants to attend this class at noon can, but there is a shortage of seats in the 10 a.m. class. If tuition does not vary by time of day, it follows that the demand for the 10 a.m. class is __________ the demand for the noon class.
Answer:
The answer is "greater then"
Explanation:
It supplies the economic seat at 10 a.m. or afternoon is identical. It implies sufficient seating resources were able to meet demands around midday, and not enough seating was available to meet that request at 10 a.m.
It remembers at 10 a.m and even at noon, there are many similar amounts of tickets, which implies that a 10 a.m. class prices are higher than the noon class requirement.
At a certain interest rate the present value of the following two payment patterns areequal: (i)$200 at the end of 5 years plus$500 at the end of 10 years. (ii)$400.94 atthe end of 5 years. At the same interest rate$100 invested now plus$120 invested atthe end of 5 years will accumulate to P at the end of 10 years. Calculate P.
Answer:
P = $917.77
Explanation:
The computation of the P is shown below:
Let us assume i% be the annual interest rate
Now
Present value of 1st Payment Pattern is
= $200 ÷ (1+i)^5 + $500/(1+i)^10
Present value of 2nd Payment Pattern is
= $400.94 ÷ (1+i)^5
Now equate these two above equations
PV of 1st Payment Pattern = PV of 2nd Payment Pattern
$200 ÷ (1+i)^5 + $500 ÷ (1+i)^10 = $400.94 ÷ (1+i)^5
$500 ÷ (1+i)^10 = $200.94 ÷ (1+i)^5
2.4883 = (1+i)^5
1+i = 1.20
i = 0.20
= 20.00%
Now
P = $100 × 1.20^10 + $120 × 1.20^5
P = $917.77
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. 14,000 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. 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:
Answer:
Total equivalent unit = 19,650
Explanation:
To apportion cost between work in progress and completed units in a particular period, we use equivalent units. Equivalents units are notional whole units which represent incomplete work and are used to apportion cost between completed units and work in progress
Equivalent Units = Degree of Completion × Units of inventory
Under the first in first out(FIFO) method, to account for the units of work completed the opening inventory are separated and distinguished from the units newly introduced in the period.
Another principle under this method is that only the percentage of work yet to be completed on the units of opening are done in the current period
Fully worked = 14,000- 3,000 = 11,000
The fully worked represents units of inventory started this current period and completed in the same period
Item Units Working Equivalent unit
Opening inventory 4,000 60%× 4,000 2,400
Fully worked 15,000 100% × 15,000 15,000
Closing inventory 3,000 75% × 3,000 2250
Total equivalent unit 19,650
Total equivalent unit = 19,650
The A. J. Croft Company (AJC) currently has $200,000 market value (and book value) of perpetual debt outstanding carrying a coupon rate of 6 percent. Its earnings before interest and taxes (EBIT) are $100,000, and it is a zero-growth company. AJC's current cost of equity is 8.8 percent, and its tax rate is 40 percent. The firm has 10,000 shares of common stock outstanding selling at a price per share of $60.00.
1. What is AJC's current total market value and weighted average cost of capital?
2. The firm is considering moving to a capital structure that is comprised of 40 percent debt and 60 percent equity, based on market values. The new funds would be used to replace the old debt and to repurchase stock. It is estimated that the increase in riskiness resulting from the leverage increase would cause the required rate of return on debt to rise to 7 percent, while the required rate of return on equity would increase to 9.5 percent. If this plan were carried out, what would be AJC's new WACC and total value?
3. Now assume that AJC is considering changing from its original capital structure to a new capital structure with 50 percent debt and 50 percent equity. If it makes this change, its resulting market value would be $820,000. What would be its new stock price per share?
4. Now assume that AJC is considering changing from its original capital structure to a new capital structure that results in a stock price of $64 per share. The resulting capital structure would have a $336,000 total market value of equity and $504,000 market value of debt. How many shares would AJC repurchase in the recapitalization?
Answer:
current market value = $800000, WACC = 7.5%new WACC = 7.38%, Total value of firm = $ 813,008.13stock price per share = $62.004750 sharesExplanation:
1) Calculate AJC's current total market value and weighted average cost of capital
current market value = value of equity + value of debt
= ( 10000 * $60 ) + $200000
= $800000
Weighted average cost of capital = ( weight of equity * cost of equity ) + ( weight of debt * cost of debt * ( 1 - tax rate )
= (75% * 8.8% ) + (25% * 6% * 0.6 ) = 7.5%
2) what would be AJC's new WACC and total value
WACC = ( weight of equity * cost of equity ) + ( weight of debt * cost of debt * ( 1 - tax rate )
= ( 60% * 9.5% ) + ( 40% * 7% * 0.6 ) = 7.38%
Total value of the firm =
= ( Cash flow after tax / WACC )
= (( 100000 * ( 1-40%)) / 7.38%
= 100000 * 0.6 / 7.38% = $ 813,008.13
3) Calculate the new stock price per share
new stock price = ( value of equity + change in debt ) / original number of outstanding shares
value of equity = weight of equity * firm value
change in debt =( weight of debt * firm value ) - initial debt value
Hence new stock price =
( 50% *$820000) + (( 50% * $820000)- $200000)) / 10000
= $62.00
4) calculate how many shares AJC would repurchase in the recapitalization
= original shares - Remaining shares
= 10000 - 5250 = 4750 shares
while ;
Remaining shares = value of equity / stock price = $336000 / $64 = 5250
original shares = 10000
Exercise 1-8A Prepare a balance sheet (LO1-3) Wolfpack Construction has the following account balances at the end of the year. Accounts Balances Equipment $ 26,000 Accounts payable 3,000 Salaries expense 33,000 Common stock 11,000 Land 18,000 Notes payable 20,000 Service revenue 39,000 Cash 6,000 Retained earnings ? Required: Use only the appropriate accounts to prepare a balance sheet.
Answer:
Please see balance sheet below.
Explanation:
Wolfpack construction balance sheet.
Dec 31
Assets $
Cash 6,000
Land 18,000
Equipment 26,000
Total assets 50,000
Liabilities.
Accounts payable 3,000
Notes payable 20,000
Total liabilities 23,000
Equity
Common stock 11,000
Retained earnings 16,000
Total stockholders equity. 27,000
Total liabilities and stockholder's equity(23,000 + 27,000) 50,000
The Balance Sheet of Wolfpack Construction has shown the total assets and total liabilities of $50,000 each. A balance sheet is a financial statement that lists the assets, liabilities, and shareholder equity of a corporation at a certain point in time.
Given,
Accounts Balances Equipment $ 26,000 Accounts payable 3,000 Salaries expense 33,000 Common stock 11,000 Land 18,000 Notes payable 20,000 Service revenue 39,000 Cash 6,000 Retained earnings ? Required to prepare a balance sheet of Wolfpack Construction has the following account balances at the end of the year.
Assets:
Equipment $26,000
Land $18,000
Cash $6,000
Total Assets $50,000
Liabilities:
Accounts payable $3,000
Notes payable $20,000
Common Stock $11,000
Retained earnings (see working note) $16,000
Total Liabilities $50,000
Working Note for Retained Earnings:
Retained earnings = Total Assets - Accounts payable - Notes payable - Common Stock
Retained earnings = $50,000 - $3,000 - $20,000 - $11,000 =$16,000
Therefore, the balance sheet of Wolfpack Construction has a value total of $50,000.
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Read the claim.
The tests for becoming a licensed driver seem unreasonably difficult;
What is the best counterclaim to complete the statement?
A. however, there is both a written and a driving portion of the test.
B. however, learner’s permits are issued at age 15 in most states.
C. however, drivers are unable to answer questions about road safety.
D. however, tougher requirements produce more prepared drivers.
Answer:D. However, tougher requirements produce more prepared drivers
Explanation:
I took the quiz
Answer:
Its D
Explanation:
Have a nice day
Complete the statement with the correct word.
______ is the time noncustodial parents spend with their children.
Answer:
parenting time or visitation
Explanation:
Answer:
visitation is the correct answer
Explanation:
plato
An advertising agency in Mexico City represents a wide range of accounts. It depicts real Mexicans enjoying everyday life. The agency does not offer assistance to clients who want to reach international markets. From this information, you can surmise that the agency is a(n) _____ agency. A. business-to-business B. transnational C. regional D. in-house E. creative boutique
Answer:
C. regional
Explanation:
The advertising agency described in the question is said to do business with several companies in Mexico City. The agency has clear skills and know-how that cater to the Mexican public.
However, the agency does not do any business with international companies, meaning that the agency is strictly regional in scope.
Which of the following statements about the balance sheet are true? (Select all that apply.)Check All That ApplyA classified balance sheet to provide useful information about liquidity and long-term solvency.A classified balance sheet to provide useful information about liquidity and long-term solvency.Liquidity refers to an assessment of whether a company will be able to pay all its liabilities.Liquidity refers to an assessment of whether a company will be able to pay all its liabilities.Although many valuable resources are not recorded as assets in the balance sheet, these resources are reflected in the company’s book value.Although many valuable resources are not recorded as assets in the balance sheet, these resources are reflected in the company’s book value.The less financial flexibility, the more risk there is that an enterprise will fail.The less financial flexibility, the more risk there is that an enterprise will fail.
Answer:
These statements are true:
Classified balance sheet to provide useful information about liquidity and long-term solvency.
From balance sheet information, liquidity financial ratios can be made, like current ratio (current assets / current liabiliies), or the acid test (Current assets - inventory / current liabilities).
Liquidity refers to an assessment of whether a company will be able to pay all its liabilities.
Liquidity can be defined as the amount of liquid assets that a company has. Liquid assets are those that can be easily sold and bought in the market without a loss of value. Cash, and cash equivalents are the most important liquid accounts. If a firm has a lot of cash, it is likely to have enough liquidity to pay off its debts in the future.
The other two statements are wrong.
Business strategy concerns Select one: A. ensuring consistency in strategic approach among the businesses of a diversified company. B. selecting a model for a single line of business to use in pursuing objectives that contribute to the whole of a diversified company. C. choosing the most appropriate strategic intent for a specific line of business. D. selecting a set of stretch financial and strategic objectives for a single business unit. E. strengthening the market position and building competitive advantage for a single line of business.
Answer:
The correct answer is the option E: strengthening the market position and building competitive advantage for a single line of business.
Explanation:
To begin with, in the world of business, the strategy concerns on making a plan that must be adaptative to the future conditions and that can be realistic at the same time in order to follow the budget requirements that the superiors have and that can be able to accomplish the most important aspects of every major strategy, and that is, to strength the market position of the company regarding that specific line of business and to also acquire competitive advantage as much as possible so that the sales will increase and the primary goal of the company of earning profits will be satisfied.
why is manufacturing becoming more competitive
Beans Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $162,000, variable manufacturing overhead of $2.80 per direct labor-hour, and 60,000 direct labor-hours. Recently, Job K818 was completed with the following characteristics: Number of units in the job 10 Total direct labor-hours 50 Direct materials $ 920 Direct labor cost $ 1,400 The total job cost for Job K818 is closest to:
Answer:
Total cost= $2,595
Explanation:
Giving the following information:
Estimated fixed manufacturing overhead cost= $162,000
Variable manufacturing overhead of $2.80 per direct labor-hour
Estimated direct labor hours= 60,000
Job K818:
Number of units in the job 10
Total direct labor-hours 50
Direct materials $920
Direct labor cost $1,400
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (162,000/60,000) + 2.8
Predetermined manufacturing overhead rate= $5.5
Now, we can calculate the total cost for Job K818:
Total cost= direct material + direct labor + allocated overhead
Total cost= 920 + 1,400 + 5.5*50
Total cost= $2,595
When the current price of an item is greater than the item's market clearing price:_________.
A) supply is greater than demand.
B) demand is greater than supply.
C) quantity supplied is greater than quantity demanded.
D) quantity supplied is less than quantity demanded.
Answer:
C) quantity supplied is greater than the quantity demanded.
Explanation:
We need not be confused, the market-clearing price is referring to the equilibrium price. Thus, if the current price is above the market-clearing price (that is, the price at which quantity demanded equals quantity supplied), it means the quantity supplied is greater than the quantity demanded of the item.
For example, at a price of $1 per orange, there's an equal amount in quantity demanded and quantity supplied of orange. However, the price increases to $2 per orange; which makes the current price of an orange greater than the market-clearing price of $1.
Debt management ratios measure the extent to which a firm uses financial leverage and the degree of safety afforded to creditors . They include the: (1) Debt-to-capital ratio, (2) Times interest earned ratio (TIE), and (3) EBITDA coverage ratio. The first ratio analyzes debt by looking at the firm's balance sheet , while the last two ratios analyze debt by looking at the firm's income statement . The debt-to-capital ratio measures the percentage of funds provided by -Select- . Its equation is:
Answer:
Provided by total capital, which is equal to interest bearing debt in favor of the company, plus stockholder's equity like preferred stock and common stock.
The debt-to-capital ratio formula is:
Debt-to-Capital Ratio = Total Liabitilies / Total Capital
If the company does not have any interest bearing debt in its favor, then, the formula can be written as:
Debt-to-Capital Ratio = Total Liabilities / Stockholder's Equity
Although appealing to more refined tastes, art as a collectible has not always performed so profitably. In 2010, an auction house sold a painting at auction for a price of $1,130,000. Unfortunately for the previous owner, he had purchased it three years earlier at a price of $1,710,000. What was his annual rate of return on this painting
Answer:
rate of interest = -12.90%
Explanation:
The computation of the annual rate of return is shown below:
As we know that
Future value = Present value * (1 + interest rate)^number of years
$1,130,000 = $1,710,000 × (1 + interest rate)^3
0.660819 = (1 + interest rate)^3
0.8710 = 1 + interest rate
So, the rate of interest is
rate of interest = -0.128981
rate of interest = -12.90%
Consider the following cost structures for three oil producers: Fossils R Us Green House Oils Shale Ale Plant and property $900,000 $1,500,000 $1,000,000 Extraction costs (per barrel) $45 $31 $40 Capacity per day 100,000 barrels 140,000 barrels 80,000 barrels If the price for a barrel of oil is currently $42, what is the amount of barrels produced by these suppliers?
Answer:
220,000 barrels per day
Explanation:
Fossils R Us Green House Oils Shale Ale
Plant and property $900,000 $1,500,000 $1,000,000
Extraction costs $45 $31 $40
(per barrel)
Capacity per day 100,000 barrels 140,000 barrels 80,000 barrels
In the short run, companies will continue to operate as long as the selling price is higher than the variable production costs, i.e. marginal revenue ≥ marginal costs. In this case, if the price of oil is $42 per barrel, only Green House Oils and Shale Ale will continue to operate since their production costs are lower than the selling price. Total production = 140,000 + 80,000 = 220,000 barrels
Corporation XYZ has taxable income of $70,000 for the current year. It will owe taxes of:__________
Answer:
Assuming that we are talking about this year, or the recent past, Corporation XYZ's tax expense = $70,000 x 21% = $14,700.
Explanation:
The Tax Cuts and Jobs Act (2017) set the corporate tax rate at 21%, and that applies to all corporations. Before the TC&JA the corporate tax rate was 35%.
. Discuss and Implement the Price Adjustment Strategies in current market. Apply each strategy with 3 examples along with picture. (10 Marks) (200 Words)
Answer:
There are many different price adjustment strategies which can be implemented in the current market.
Explanation:
Psychological pricing:
Psychological pricing is a strategy in which the price of a product is displayed with mostly one cent difference so the whole number shown is less by $1 and this difference can get higher if the price of the product is more.
Example 1: The price for a toy in a toy shop is $4.99, if rounded this will be $5 but the whole number visible is $4.
Example 2: The price of a laptop is $193, this again is nearly $200 but the price is reduced by $7 in order to influence their customers into buying the product.
Example 3: The price of a car is $35,995, this again is about $36,000 but the buyer may be influenced by this technique and result in purchasing the product with such price.
Geographical Pricing:
Geographical pricing is a strategy where different prices are charged in different outlets, this strategy is made keeping in mind the purchasing power of the locality, if the local people can pay higher price for a product then the price is high there but same product may have a lower price in an area where people can not pay high price.
Example 1: Price of a T-shirt is $15 in a posh area while the price of the same T-shirt is $5 in an area with poor locality.
Example 2: Price of a hair brush is $10 in a poor area while the same brush is available in a posh area at a rate of $35.
Example 3: Price for a food item is $6 in a restaurant in posh area while the same burger is available for $3 in a restaurant in a poor area.
Which of the following is an assumption of the theory of monopoly?
a. there are extremely high barriers to entry
b. there are many sellers
c. the product has a number of close substitutes
d. the product is of extremely high quality
Answer:
A
Explanation:
A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.
An example of a monopoly is a utility company
A. Monique balls is paid an hourly rate of $17.63 for a regular time work. What will her time and a half hourly rate for overtime work?
B. What will be her double-time hourly pay rate for overtime?
Assume that your aunt sold her house on December 31, and to help close the sale she took a second mortgage in the amount of $10,000 as part of the payment. The mortgage has a quoted (or nominal) interest rate of 12%; it calls for payments every 6 months, beginning on June 30, and is to be amortized over 10 years. Now, 1 year later, your aunt must inform the IRS and the person who bought the house about the interest that was included in the two payments made during the year. (This interest will be income to your aunt and a deduction to the buyer of the house.) To the closest cent, what is the total amount of interest that was paid during the first year
Answer:
Total interest paid during the first year: $1,183.69
Explanation:
First, we need to know the installment amount:
[tex]PV \div \frac{1-(1+r)^{-time} }{rate} = C\\[/tex]
PV 10,000.00
time 20
rate 0.06
[tex]10000 \div \frac{1-(1+0.06)^{-20} }{0.06} = C\\[/tex]
C $ 871.85
now we calcualte the interest and amortization made in the first payment:
interest: 10,000 x 6% = 600
Amortization 871,85 - 600 = 271,85
Principal at second installment:
10,000 - 271.85 = 9,728.15
Interest 9,728.15 x 0.06 = 583,69
Total interest: 583,69 + 600 = 1.183,69
The three (3) key components in creating a financial plan are: Select one: a. The sales forecast, proforma financial statement and external financing plan b. Strategic plan, corporate purpose and corporate scope c. Cash, short term investments and accounts receivable d. Free cash flow, Economic Value Added, sales forecast e. None of the above
Answer:
The correct answer is the option D: Free cash flow, economic value added, sales forecast.
Explanation:
To begin with, in the field of business, a financial plan consists of an strategy that the managers of the company must follow in order to have every money aspects established and on guard of what can happen straight ahead regarding the conditions and circumstances of the organization's environment and context as well. Therefore that a financial plan's major three components are the cash flow statement where the managers must see how the money is flowing in and out, also the sales forecast that will encourage the company itself to try to achieve that expectations and the economic value added could also be very important when it comes to matters of money and how the business will value their products for sale according to the costs structure that the enterprise has.
Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X in each of the following situations: a. The price of input A decreases. It will not change. It will increase. It will decrease. b. An excise tax of $3 is imposed on good X. It will increase. It will not change. It will decrease. c. An ad valorem tax of 7 percent is imposed on good X. It will increase. It will decrease. It will not change. d. A technological change reduces the cost of producing additional units of good X. It will increase. It will not change. It will decrease.
Answer:
a. It will increase.
b. It will decrease
c. It will decrease
d. it will increase.
Explanation:
If the price of an input needed for production of good X decreases, the cost of production of good X reduces. It becomes cheaper to produce good X and and as a result the supply of good X would increase.
An increase in tax increases the cost of production and makes production of good X more expensive. As a result, the supply of good X would fall.
technological change that reduces the cost of producing additional units of good X, would make the production of good X less expensive. As a result, the supply of good X would increase
Gerken Company concluded at the beginning of 2021 that the company's ownership interest in DillCo had increased to the point that it became appropriate to begin using the equity method to account for the investment. The balance in the investment account is $69,000 at the time of the change, and accountants working with company records determined that the balance would have been $81,000 if the account had been adjusted for investee net income and dividends as prescribed by the equity method. After implementing the change to the equity method, if financial statements were prepared:
Answer:
NET INCOME will remain the same or remain unchanged while the RETAINED EARNINGS will be greater by the amount of $12,000
Explanation:
Based on the information given we were told that the balance in the investment account was the amount of $69,000 in which we were still told that at the time when the change occured the accountants who was working with the company records shows that the balance would have been the amount of $81,000 which means that after the change is been implemented to the equity method, if financial statements were prepare the NET INCOME will remain the same or remain unchanged while the RETAINED EARNINGS will be greater by the amount of $12,000 ($81,000-$69,000).