Answers
Answer:
d. only rice
Explanation:
Please see attachment
Related Questions
You are the vice president of a computer sales company. You could save significant money by firing one of two employees who service the northwest region: Gary and Brenda. Gary is a long-time employee with an excellent sales record and a forceful demeanor. However, you and Gary have conflicted in the past when you rejected his request for a significant raise. Brenda has been struggling with her sales quotas lately, but is very popular amongst her co-workers. She has also been a quiet confident for key sales decisions. Evaluate whether you should layoff Brenda, Gary, or neither employee, and give the reasons for your decision.
Answers
Answer:
I would fire Gary.
Explanation:
Even if Gary has a better sales record, he seems to be unable to keep good personal relationships, both with coworkers and clients. This in the long-run could become more problematic and lead to a decline in sales record, and also, a decline in other areas.
Brenda, on the other hand, needs to improve her sales record, but she has strong interpersonal skills that give her an advatange. It is easier to teach a person how to sell than how to be a well-mannered person, therefore, in theory, if should not be so difficult to help Brenda reach higher sales.
Suppose there are two coffee shops in your college town, Laughing Monkey Latte and Kelly's Coffee Krush, and they decide to operate collusively as a cartel. If both shops abide by the cartel's agreement, each will earn $80000 in profit. If both shops cheat on the cartel's agreement, both will earn $15000 in profit. If one shop cheats and the other abides by the agreement, the cheater will earn a profit of $120000, while the shop that abides will have a loss of $7500. The Nash equilibrium between Laughing Monkey Latte and Kelly's Coffee Krush occurs when Choose one: O A. both shops abide by the cartel's agreement. B. both shops cheat on the cartel's agreement. C. Laughing Monkey Latte cheats on the agreement and Kelly's Coffee Krush abides by the agreement. D. There is no Nash equilibrium for Laughing Monkey Latte and Kelly's Coffee Krush.
Answers
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Thomsen Computer Company produces three products: Earth, Wind, and Fire. Earth requires 80 machine setups, Wind requires 60 setups, and Fire requires 180 setups. Thomsen has identified an activity cost pool with allocated overhead of $960,000 for which the cost driver is machine setups.
How much overhead is assigned to each product? Earth Wind Fire
Select one:
A. $320,000 $320,000 $320,000
B. $200,000 $150,000 $450,000
C. $240,000 $180,000 $540,000
D. $180,000 $320,000 $460,000
Answers
Answer:
The correct answer is C.
Explanation:
Giving the following information:
Earth requires 80 machine setups, Wind requires 60 setups, and Fire requires 180 setups. Thomsen has identified an activity cost pool with an allocated overhead of $960,000 for which the cost driver is machine setups.
First, we need to calculate the manufacturing overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 960,000/ 320= $3,000 per machine set up
Now, we can allocate overhead based on machine set up:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Earth Allocated MOH= 3,000*80= $240,000
Wind Allocated MOH= 3,000*60= $180,000
Fire Allocated MOH= 3,000*180= $540,000
The overhead assigned to each product is $240,000 for Earth, $180,000 for Wind, and $540,000 for Fire. Therefore, the correct option is C.
To determine the overhead assigned to each product, we use activity-based costing. Here, the cost driver is machine setups, and the total overhead is $960,000.
Step 1: Calculate the total number of machine setups
Total Setups = 80 + 60 + 180 = 320
Step 2: Calculate the overhead cost per setup
Overhead Cost per Setup = Total Overhead/Total Setups = 960,000/320 = 3,000
Step 3: Calculate the overhead assigned to each product
- Earth:
Overhead for Earth = 80 * 3,000 = 240,000
- Wind:
Overhead for Wind = 60* 3,000 = 180,000
- Fire:
Overhead for Fire = 180 * 3,000 = 540,000
The overhead assigned to each product is $240,000 for Earth, $180,000 for Wind, and $540,000 for Fire.
Which of the following statements about employer prejudice is true?
A. Employer prejudice occurs only in low-paying jobs.
B. Economic theory tells us that it would be impossible for employer prejudice to exist in a firm that is a monopoly.
C. Employer prejudice will help a monopolist to increase his profits by satisfying his managers personal prejudices.
D. It would be impossible for employer prejudice to exist in a firm that sells its output in a competitive market unless all rivals also discriminate.
E. Legislation has ended employer prejudice in the United States.
Answers
Answer:
D. It would be impossible for employer prejudice to exist in a firm that sells its output in a competitive market unless all rivals also discriminate.
Explanation:
In a competitive market , efficiency of employee is the only factor that is taken into account to meet the challenges of the market . The employer can not afford the cost of being prejudiced against a staff because it only has deleterious effect on the morale of the employee. So in a competitive market ,there is no scope for employer's prejudice.
Ayayai Corporation purchases a patent from Blossom Company on January 1, 2020, for $40,000. The patent has a remaining legal life of 12 years. Ayayai feels the patent will be useful for 10 years. Prepare Ayayai’s journal entries to record the purchase of the patent and 2020 amortization
Answers
Answer:
Explanation:
The journal entries are shown below:
1. Patent A/c Dr $40,000
To Cash A/c $40,000
(Being patent is purchase in cash is recorded)
2. Amortization expense A/c Dr $4,000
To Patent A/c $4,000
(Being amortization expense is recorded)
The computation is shown below:
= Patent ÷ useful life
= $40,000 ÷ 10 years
= $4,000
Final answer:
To record the purchase of a patent, Ayayai Corporation would debit 'Patent' and credit 'Cash' for $40,000. The 2020 amortization would be recorded by debiting 'Amortization Expense' and crediting 'Accumulated Amortization—Patent' for $4,000, assuming a straight-line amortization over its 10-year useful life.
Explanation:
The student's question involves recording the purchase of a patent and its subsequent amortization in accounting records. On January 1, 2020, Ayayai Corporation purchases a patent from Blossom Company for $40,000, which has a legal life of 12 years but Ayayai estimates its useful life to be 10 years. To record the purchase, Ayayai would make the following journal entry:
Patent 40,000
Cash 40,000
To record the 2020 amortization of the patent, Ayayai would use the straight-line method, which spreads the cost evenly over its useful life. With a useful life of 10 years, the annual amortization expense would be $4,000 ($40,000 / 10 years). The journal entry for the 2020 amortization would be:
Amortization Expense 4,000
Accumulated Amortization—Patent 4,000
This entry would be made at the end of the accounting period (e.g., December 31, 2020). As a result of this entry, Ayayai's income statement for 2020 would reflect the amortization expense, and the balance sheet would show the patent net of accumulated amortization.
Daily Enterprises is purchasing a $ 9.8 million machine. It will cost $ 48,000 to transport and install the machine. The machine has a depreciable life of five years and will have no salvage value. If Daily uses straight-line depreciation, what are the depreciation expenses associated with this machine?
Answers
Answer:
$1,969,600
Explanation:
Total cost to be capitalized = $9,800,000 + $48,000
= $9,848,000
Useful life = 5 years
Using straight line method
Depreciation expense = $9,848,000/5
= $1,969,600
The depreciation expenses associated with this machine amounts to $1,969,600.
Illustrate the following with supply and demand curves: In March 2015, hogs in the United States were selling for 81 cents per pound, up from 58 cents per pound a year before. This was due primarily to the fact that supply had decreased during the period. Show this change in the figure on the right.
1.) Using the point drawing tool, locate the equilibrium point for 2015 in the U.S. hog market. Label your point 'E'.
2.) Using the line drawingtool, illustrate the change in the U.S. hog market between 2014 and 2015. Properly label your line 'S2015'. (Hint: Perform the steps in the order given.) Carefully follow the instructions above and only draw the required objects.
Answers
Answer:
Details are bellow.
Explanation:
This case is about graphically describing the relationship between supply and demand in a market. As can be seen, the point of intersection between supply and demand is the equilibrium point of the system, and this varies according to supply and demand. In this case, supply has decreased in 2015 compared to 2014, which causes the price to rise from $0.58 to $0.85 while the number of units sold decreases.
Schapp Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: Hours Move time 3.4 Wait time 11.2 Queue time 7.6 Process time 2.3 Inspection time 1.2 The throughput time was:
Answers
Answer:
14.5 hours.
Explanation:
Given that,
Move time = 3.4
Wait time = 11.2
Queue time = 7.6
Process time = 2.3
Inspection time = 1.2
Throughput time:
= Process time + Move time + Inspection time + Queue time
= (2.3 + 3.4 + 1.2 + 7.6)
= 14.5 hours.
Therefore, the throughput time for the Schapp corporation was 14.5 hours.
As part of the overall systems engineering effort, both the Government and the Contractor conduct configuration management activities, and either can take the lead for a particular configuration item. The contractor is usually responsible for design and control of ___________________, while the Government is responsible for _______________. [Recognize how configuration management impacts all functional disciplines (e.g., test, logistics, manufacturing, etc.).]
A. Internal interfaces / external interfaces
B. Supportability changes / sustainability changes
C. Technical measures / technical performance measures
D. Integrated products /integrated processes
Answers
Answer:
The correct answer is letter "A": Internal interfaces / external interfaces.
Explanation:
The objectives of network engineering and project management are to provide the same degree of engineering and strategic business management. It includes descriptions of the system, overall design of the system and examination of design integrity. Interfaces are handled both for the contractor and the government. The first takes care of the internal factors while the second of the externals.
It is August 14th and John has just purchased 100 shares of Cash Cow Inc. for $1,200 with a settlement date of August 16th. Cash Cow recently declared a dividend of $1.00 per share payable to shareholders of record as of August 15th. How much money did John pay for the right to the recently declared dividend? A. John paid $0.00 for the dividend because he was not the shareholder of record on August 15th. Therefore, the dividend payment went to the previous owner of the stock. B. John paid $100.00 for the dividend because he purchased the stock prior to the dividend record date. C. John paid $50.00 for the dividend because the record date was between purchase date of August 14th and the settlement date of August 16th. Therefore, the dividend payment is shared equally between the previous owner of the stock and John. D. This is a complicated issue and not easily answered. Thus, there is not enough information to answer this question.
Answers
Answer:
A. John paid $0.00 for the dividend because he was not the shareholder of record on August 15th. Therefore, the dividend payment went to the previous owner of the stock.
Explanation:
Settlement date is the date on which ownership of share transfer to buyer of stock, it is normally two days after trade date.
Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.
John paid $0.00 for the right to the Cash Cow Inc. dividend because the settlement date of his purchase was after the record date for the dividend.
Explanation:When John purchased shares of Cash Cow Inc., he paid for the stock itself and any dividends that would be coming from that purchase. In this case, John bought the shares on August 14th, but the shares have a settlement date of August 16th. Because the record date for the dividend is August 15th, to be eligible to receive the dividend, John needed to be the shareholder of record by that date. As the settlement date is after the record date, John will not be considered the shareholder of record and thus will not receive the dividend. To answer the question, John paid $0.00 for the right to the recently declared dividend, as the entitlement to the dividend remains with the previous owner of the shares.
Analysis reveals that a company had a net increase in cash of $22,310 for the current year. Net cash provided by operating activities was $20,100; net cash used in investing activities was $11,050 and net cash provided by financing activities was $13,260. If the year-end cash balance is $27,150, the beginning cash balance was:
a $4,840.
b $17,470.
c $49,460.
d $44,620.
e $43,620.
Answers
Answer:
If the year-end cash balance is $27,150, the beginning cash balance was: a $4,840.
Explanation:
Analysis reveals that a company had a net increase in cash of $22,310 for the current year.
Therefore,
The year-end cash balance - the beginning cash balance = $22,310
The beginning cash balance = The year-end cash balance - $22,310
The year-end cash balance is $27,150
The beginning cash balance = $27,150 - $22,310 = $4,840
Final answer:
The correct answer is a $4,840.
Explanation:
Net cash provided by operating activities: $20,100
Net cash used in investing activities: $11,050
Net cash provided by financing activities: $13,260
To find the beginning cash balance, use the formula:
Beginning Cash Balance = Ending Cash Balance - Net Increase in CashBeginning Cash Balance = $27,150 - $22,310Beginning Cash Balance = $4,840Cayahuga Hardwood produces handcrafted jewelry boxes. A standard-sized box requires 8 feet of hardwood in the finished product. In addition, two board feet of scrap lumber are normally left from the production of one box. Hardwood costs $4.00 per board foot, plus $1.50 in transportation charges per board foot.Required: Compute the standard direct-material cost of a jewelry box.
Answers
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Delicious Dave?s Maple Syrup, a Vermont corporation, has property in the following states:Property State Beginning EndingMaine $971,644 $1,044,489Massachusetts $138,027 $251,061New Hampshire $420,455 $320,689Vermont $922,332 $954,376Total $2,452,458 $2,570,615
What are the property apportionment factors for Maine, Massachusetts, New Hampshire, and Vermont in each of the following alternative scenarios?A. Delicious Dave?s has nexus in each of the states.b. Delicious Dave?s has nexus in each of the states, but the Maine total includes $460,000 of investment property that Delicious rents out (unrelated to its business).c. Delicious Dave?s has nexus in each of the states, but also pays $56,000 to rent property in Massachusetts.
Answers
Final answer:
The property apportionment factors for each state are calculated based on the proportion of property value in each state to the total property value of Delicious Dave?s Maple Syrup. In scenario C, where Delicious Dave?s pays $56,000 to rent property in Massachusetts, the property apportionment factors for Massachusetts and Vermont are calculated differently.
Explanation:
The property apportionment factors for Maine, Massachusetts, New Hampshire, and Vermont can be calculated based on the proportion of property value in each state to the total property value of Delicious Dave?s Maple Syrup.
In scenario A, where Delicious Dave?s has nexus in each of the states, the property apportionment factors are:
Maine: ($1,044,489 - $971,644) / ($2,570,615 - $2,452,458) = 0.0127Massachusetts: ($251,061 - $138,027) / ($2,570,615 - $2,452,458) = 0.0137New Hampshire: ($320,689 - $420,455) / ($2,570,615 - $2,452,458) = -0.0216Vermont: ($954,376 - $922,332) / ($2,570,615 - $2,452,458) = 0.0166In scenario B, where the Maine total includes $460,000 of investment property that Delicious rents out unrelated to its business, the property apportionment factor for Maine would be:
Maine: ($1,504,489 - $971,644) / ($2,570,615 - $2,452,458) = 0.0818Massachusetts, New Hampshire, and Vermont remain the same as in scenario A.In scenario C, where Delicious Dave?s pays $56,000 to rent property in Massachusetts, the property apportionment factors for Massachusetts and Vermont would be:
Maine, New Hampshire, and Vermont remain the same as in scenario A.Massachusetts: ($307,061 - $138,027 - $56,000) / ($2,570,615 - $2,452,458) = 0.0506Which of the following is not a required assumption for the analysis of variance?
a. The random variable of interest for each population has a normal probability distribution.
b. Populations under consideration have equal means.
c. At least 2 populations are under consideration.
d. The variance associated with the random variable must be the same for all populations.
Answers
Answer:
B. Population under consideration have equal means.
Explanation:
ANOVA (analysis of variance) is a statistical technique for determining the existence of differences among several population means. ANOVA is not used to show that variances are different (that is a different test); it is used to show that means are different
The assumption that populations under consideration have equal means is not required for an analysis of variance (ANOVA); instead, ANOVA aims to test whether the means are statistically significantly different.
Explanation:The student's question pertains to the required assumptions for conducting an analysis of variance (ANOVA). In ANOVA, several assumptions must be satisfied:
Each population from which a sample is taken is assumed to be normally distributed.All samples are randomly selected and independent.The populations are assumed to have equal standard deviations (or variances).At least two populations are under consideration.Option b, which states that populations under consideration have equal means, is not a required assumption for ANOVA. In fact, the purpose of ANOVA is to test if there are statistically significant differences between the means of these populations. Hence, assuming equal means beforehand would negate the purpose of the test.
Learn more about Analysis of Variance (ANOVA) here:https://brainly.com/question/30399775
#SPJ3
PotvinPotvin Self Storage purchased land, paying $ 165 comma 000$165,000 cash as a down payment and signing a $ 175 comma 000$175,000 note payable for the balance. PotvinPotvin also had to pay delinquent property tax of $ 5 comma 000$5,000, title insurance costing $ 4 comma 000$4,000, and $ 2 comma 000$2,000 to level the land and remove an unwanted building. The company paid $ 55 comma 000$55,000 to add soil for the foundation and then constructed an office building at a cost of $ 900 comma 000$900,000. It also paid $ 52 comma 000$52,000 for a fence around the property, $ 16 comma 000$16,000 for the company sign near the property entrance, and $ 6 comma 000$6,000 for lighting of the grounds.
Answers
Answer:
land 400,000
land improvements 76,000
building 900,000
Explanation:
cost 165,000 cash + 175,000 note payable = 340,000
delinquent property tax 5,000
soil 55,000
total land: 340,000 + 5,000 + 55,000 = 400,000
period cost: 2,000 demolition + 4,000 insurance
building: 900,000
Notice the soil while it is used for the fundation It will be part of the land not the building. If we demolish the building later the soild will be still there.
land improvements
fence 52,000
sing 16,000
lighting 6,000
Total 76,000
The primary purpose of the Troubled Asset Relief Program was to Select one:
a. quickly provide jobs to the unemployed.
b. shore up shaky financial institutions.
c. lower the rate of inflation.
d. demonstrate that only the Fed controlled economic policy.
e. help out the European economy and boost demand for American exports.
Answers
Answer:
The answer is b. shore up shaky financial institutions.
Explanation:
The troubled asset relief program was a $700 billion bailout program that was designed and approved by the US congress to stabilize the american financial institutions following the financial crisis of 2008.
Variable Costing—Production Exceeds Sales Fixed manufacturing costs are $44 per unit, and variable manufacturing costs are $100 per unit. Production was 67,200 units, while sales were 50,400 units.
a. Determine whether variable costing income from operations is less than or greater than absorption costing income from operations. Variable costing income from operations is less than absorption costing.
b. Determine the difference in variable costing and absorption costing income from operations. $
Answers
The difference in income between variable costing and absorption costing when production exceeds sales is due to the treatment of fixed manufacturing costs. The difference is calculated by multiplying unsold inventory by the fixed cost per unit, which yields a difference of $739,200 in income.
Explanation:Understanding Variable and Absorption Costing
When comparing variable costing and absorption costing, the main difference is in how fixed manufacturing costs are treated. Under variable costing, only variable costs are included in the product costs, while absorption costing includes both variable and fixed manufacturing costs. With the information provided, we know that fixed manufacturing costs are $44 per unit and variable costs are $100 per unit. Production was at 67,200 units while sales were 50,400 units.
Comparison of Income from Operations
Under variable costing, only variable production costs are expensed when products are sold. Hence, when production exceeds sales, as it does in this case, the inventory will carry less cost under variable costing since no fixed costs are allocated to unsold inventory. Conversely, under absorption costing, fixed manufacturing costs are allocated to each unit produced, regardless if they are sold or not. This means when production exceeds sales, absorption costing will report higher income from operations compared to variable costing, because some of the fixed costs are tied to the units in inventory rather than being expensed immediately.
The difference in income from operations under both costing methods is attributable to the deferred fixed manufacturing cost in inventory under absorption costing. To calculate the difference:
Find the number of units in ending inventory (Production - Sales) which is 67,200 - 50,400 = 16,800 units.Multiply this by the fixed cost per unit ($44) to determine the total fixed costs deferred in inventory: 16,800 units * $44/unit = $739,200.The difference in income between the two methods will be $739,200, which reflects the fixed manufacturing costs that are included in the ending inventory under absorption costing but not under variable costing.
Madison Corporation purchases an investment in Lake Geneva, Inc. at a purchase price of $10 million cash, representing 40% of the book value of Lake Geneva, Inc. During the year, Lake Geneva reports net income of $1,700,000 and pays $419,000 of cash dividends. At the end of the year, the market value of Madison’s investment is $12.0 million. What is the year-end balance of the equity investment in Lake Geneva? Select one: A. $12,000,000 B. $18,910,000 C. $10,480,000 D. $10,512,000 E. $10,000,000
Answers
Answer:
$ 10512000
Explanation:
The market value of Madison investment which is the aggregate value of the company's investment =$ 12 million
The book value = assets - liabilities = (1700000 - 419000) ×0.4 = $ 51240
The year-end balance = $ 51240 + $ 10 million = $ 10512000 approx
In public stock companies, inside directorsA. generally form the lower levels of management in an organization.B. are appointed by shareholders to provide the board with necessary company information.C. are not full-time employees of the firm.D. are more likely to watch out for shareholder's interests than external directors.
Answers
Answer:
The correct answer is the option B: are appointed by shareholders to provide the board with necessary company information.
Explanation:
First of all, a public stock company is a type of company whose main characteristic is that the ownership ir organized via shares of stock that are free trade on a stock exchange market
Secondly, an inside director is the name that receives an employee from the company whose main characteristic is thar according to the fact that he is very specialized about the inner working of the company then he might be appointed by a major institutional investor in order to facilitate the interest of that person by acting for best of the company.
Inside directors in public stock companies are part of the company’s senior management, they are full-time employees providing board with necessary company information, while their attention to shareholders' interests may be presumably higher due to their vested interests.
Explanation:
In public stock companies, inside directors are typically high-ranking executives within the company. Thus option A is incorrect. Option C is also not accurate because inside directors are indeed full-time employees. Concerning option B, it's partially true because while inside directors do provide board with necessary company information, they're not particularly appointed by the shareholders, rather they work as part of the company's senior management. Finally, whether inside directors are more likely to watch out for shareholders' interests than external directors is subjective. However, since inside directors are part of the company's ongoing operations, it can be adeptly assumed that they may have more vested interests in company's performance, benefiting both the company and its shareholders. Consequently, they may potentially look out for shareholders' interests more.
Learn more about Inside directors here:https://brainly.com/question/34865250
#SPJ6
Evans Inc. had current liabilities at April 30 of $74,100. The firm's current ratio at that date was 1.7.Required:Calculate the firm's current assets and working capital at April 30.Assume that management paid $17,200 of accounts payable on April 29. Calculate the current ratio and working capital at April 30 as if the April 29 payment had not been made. (Round "Current ratio" answer to 2 decimal places.)
Answers
Answer:
* The firm's current assets and working capital at April 30:
+ Current asset $125,970
+ Working capital: $51,870
* The current ratio and working capital at April 30 as if the April 29 payment had not been made:
+ Current ratio: 1.57
+ Working Capital: $51,870
Explanation:
* The firm's current assets and working capital at April 30:
We have Current asset/ Current Liabilities = Current ratio <=> Current asset = Current liabilities x current ratio = 74,100 x 1.7 = $125,970.
Working capital = Current asset - Current Liabilities = 125,970 - 74,100 = $51,870.
* The current ratio and working capital at April 30 as if the April 29 payment had not been made:
- Current asset will be 125,970 + 17,200 = $143,170; Current Liabilities will be 74,100 + 17,200 = $91,300 ( as cash has not be deducted for account payable settlement, as a result, account payable is still maintained balance of 17,200 higher than the scenario where the payable had been settled).
=> Current ratio = 143,170/91,300 = 1.57; Working Capital = 143,170 - 91,300 = $51,870.
Answer: Current asset S10,586
Working capital is-S63,514
Current ratio 1 to 7
Explanation:
Current ratio= current assets to current liability =1..7
1.7=x to 74100
1/7=x/74100
7x=74100
X=74100/7
Current asset=S10,586
Working capital is current assets minus current liability
S10,586 minus S74100
Working capital is -S63,514
Current ratio if the payment has not been made is 1 to 7
The free cash flow hypothesis states:
a. that firms with higher levels of free cash flow should reward their managers with bonuses.
b. that firms with greater free cash flow will pay more in dividends thereby reducing the risk of financial distress.
c. that issuing debt requires interest and principal payments to be paid thereby reducing the potential of management to waste resources.
d. that firms will higher levels of free cash flow should reduce their debt levels.
e. that firms with greater free cash flow should issue new equity to help minimize the wasting of resources by managers.
Answers
Answer:
C. that issuing debt requires interest and principal payments to be paid thereby reducing the potential of management to waste resources.
Explanation:
Free Cash Flow is the cash generated by an organisationafter it has accounted for the outflows to capital assets maintenance costs and operating activities. Free Cash flow is a measure of a company's profitability after non-cash expenses in the account statement have been deducted. It is the cash flow an organisation has when it has limited or no debt obligations in its portfolio
The Hypothesis of free cash flow states that an organisation with a large amount of free cash will display less financial or spending discipline compared with an organisation that has debts obligations to spend cash on.
Based on the hypothesis, it becomes essential for such organisations to issue debts so that as the legal obligations (debts, principal and interest) increases, the potential to waste money as a result of fre cash flow reduces.
Maloney's, Inc. has found that its cost of common equity capital is 17 percent and its cost of debt capital is 6 percent. The firm is financed with $3,000,000 of common shares (market value) and $2,000,000 of debt. What is the after-tax weighted average cost of capital for Maloney's, if it is subject to a 40 percent marginal tax rate?
Answers
Answer:
11.64%
Explanation:
The formula to compute WACC is shown below:
= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of common stock) × (cost of common stock)
where,
Weighted of debt = Debt ÷ total firm
The total firm includes debt, preferred stock, and the equity which equals to
= $3,000,000 + $2,000,000 = $5,000,000
So, Weighted of debt = ($2,000,000 ÷ $5,000,000) = 0.40
And, the weighted of common stock = (Common stock ÷ total firm)
= $3,000,000 ÷ $5,000,0000
= 0.60
Now put these values to the above formula
So, the value would equal to
= (0.40 × 6%) × ( 1 - 40%) + (0.60 × 17%)
= 1.44% + 10.2%
= 11.64%
The after-tax weighted average cost of capital for Maloney's, Inc. is calculated using the provided cost of equity, cost of debt, market values, and tax rate. The after-tax WACC is found to be 10.92%.
The student has asked about computing the after-tax weighted average cost of capital (WACC) for Maloney's, Inc. Knowing the cost of common equity capital, cost of debt capital, market value of debt and equity, as well as the marginal tax rate, we can calculate WACC. The cost of debt capital is adjusted for the tax shield provided by the interest expense deduction.
First, we need to find the weights for the debt and equity in the overall capital structure. This can be done by dividing the market value of each by the total market value of financing (debt + common shares).
Next, the cost of debt is adjusted for taxes by multiplying it with (1 - tax rate).
Finally, we calculate the WACC by multiplying the weight of each source of capital (equity and after-tax debt) by their respective costs and then summing these products.
The formula to compute the WACC is:
WACC = (E/V) × Re + (D/V) × Rd × (1 - Tc)
Where:
E is the market value of equity ($3,000,000)
D is the market value of debt ($2,000,000)
V is the total market value of financing (E + D)
Re is the cost of common equity capital (17%)
Rd is the cost of debt capital before taxes (6%)
Tc is the corporate tax rate (40%)
Applying the formula:
WACC = ($3,000,000 / $5,000,000) × 0.17 + ($2,000,000 / $5,000,000) × 0.06 × (1 - 0.40)
WACC = 0.102 + 0.0072
WACC = 0.1092 or 10.92%
The after-tax WACC for Maloney's, Inc. is 10.92%.
During a meeting to discuss ways to cut costs on benefit packages, the vice president of the company, Harold, suggests getting long-term disability insurance for all employees. Alexis, HR manager, disagrees with him stating that short-term disability coverage is more advantageous. Which of the following supports Alexis' statement? a. Long-term disability coverage does not have any limits on the amount to be paid each month to employees b. Short-term disability coverage is offered by few employers, which leads to a competitive advantage c. Short-term disability plans limit maximum coverage in a month, which makes them more affordable for the company d. The nature of work is such that the level of risk involved is high and injuries could be permanent
Answers
Answer:
The correct answer is letter "C": Short-term disability plans limit maximum coverage in a month, which makes them more affordable for the company.
Explanation:
Short-term disability is the type of employee insurance plan that gives compensation to the workers in front of injuries that are not related to work or illnesses that do not allow employees to develop their regular duties. The coverage starts between 1 to 14 days after workers suffer a condition that does not allow them to work. This type of benefit has a monthly limit which is an advantage for the firm, being this the reason why most employers offer short-term disability coverage.
The accounting equation is assets = liabilities + owner’s equity.
Please explain the relationship between economic resources and claims to economic resources.
a. Why must this equation always balance?
b. What transactions increase or decrease owner’s equity?
c. How does net income or loss affect owner’s equity?
d. Please give an example of a transaction, applied to the accounting equation.
Answers
The accounting equation, assets = liabilities + owner’s equity, denotes the relationship between a company's resources and the claims to these resources. The equation must always balance due to the dual effect of each transaction. Transactions affect owner's equity, and net income or loss directly impacts this equity.
Explanation:The accounting equation, assets = liabilities + owner’s equity, is a fundamental concept in financial accounting. This equation shows the relationship between economic resources and the claims to these resources. Assets represent economic resources of the company. Liabilities represent claims of creditors and owner’s equity represents the claims of the owners.
a. The accounting equation always must balance because every financial transaction has an equal effect on both sides of the equation.
b. Transactions that increase owner's equity include revenues and injection of capital by owners, while expenses or withdrawal of capital by owners decrease owner's equity.
c. Net income or loss directly affects owner’s equity. If the company has a net income, it increases owner’s equity. Conversely, a net loss decreases owner’s equity.
d. For instance, if a business takes a loan of $20,000, its assets (cash) increase by $20,000 and its liabilities (loan) also increase by $20,000. Hence, the accounting equation is balanced.
Learn more about Accounting equation here:https://brainly.com/question/33441178
#SPJ6
A shareholder who was buying additional shares in Wayport, Inc., told the shareholder seller "he was not aware of any bluebirds of happiness in the corporation's world." However, at the time the buyer made the statement he was aware that the CEO had informed the board via e-mail of a patent sale by Wayport that meant that the corporation would receive net proceeds of $7.6 million and would increase its year-end cash position by 22%. Which of the following statements is correct? a. The buyer has done nothing wrong unless he was the CEO or a member of the board. b. The statement was too general to constitute a basis for a 10(b) claim. c. The seller has a 10(b) claim against the buyer. d. The statement would need to contain numbers to be a material misrepresentation.
Answers
Answer: C. The seller has a 10(b) claim against the buyer.
Explanation:
10(b) is a section within the Securities and Exchange Commission and are a common source of liability for public companies.
It makes it unlawful to use or employ in relation to the trading of shares or securities.
Over here the buyer made the statement that he was aware that the CEO informed the board via email of a patent sale by Wayport that meant that the corporation would receive net proceeds.
The buyer has unlawful means of source and therefore is thinking of buying additional shares. Buyer is violating the 10(b) section of the securities and exchange commission act.
Which of the following correctly explains the dominant firm model of an oligopoly?
Group of answer choices
A. The firm that sets the lowest price gains the entire market share.
B. A single firm sets a price which is lower than the current market price and gains market share at the expense of the other firms.
C. A single firm sets the price in the market, which is taken as given by the other smaller firms.
D. Each firm in the market sets its price based on the reaction of the other firm.
E. The firms in the market collude and set prices in order to maximize their combined profits.
Answers
Answer:
C. A single firm sets the price in the market, which is taken as given by the other smaller firms
Explanation:
An oligopoly is when there are a few large firms operating in an industry. There are significant barriers to entry or exit of firms in the industry.
An oligopoly can set price through price leadership. It is when a firm sets the price in the market, which is taken as given by the other smaller firms.
Another way an oligopoly sets prices is through collusion. It is when firms in an oligopoly come together to set prices.
I hope my answer helps you.
Me Online, Inc. is considering a project that has an initial after-tax outlay or after-tax cost of $220,000. The respective future cash inflows from its four-year project for years 1 through 4 are: $50,000, $60,000, $70,000 and $80,000. Sportswear Online uses the net present value method and has a discount rate of 11%. Will Sportswear Online accept the project?
a. Me Online rejects the project because the NPV is about -$22,375.73
b. Me Online accepts the project because the NPV is greater than $10,000.00
c. Me Online rejects the project because the NPV is about -$12,375.60
d. Me Online rejects the project because the NPV is about -$12,375.60
Answers
Answer:
a. Me Online rejects the project because the NPV is about -$22,375.73
Explanation:
The computation of the Net present value is shown below
= Present value of all yearly cash inflows after applying discount factor - initial investment
The discount factor should be computed by
= 1 ÷ (1 + rate) ^ years
where,
rate is 11%
Year = 0,1,2,3,4
Discount Factor:
For Year 1 = 1 ÷ 1.11^1 = 0.9009
For Year 2 = 1 ÷ 1.11^2 = 0.8116
For Year 3 = 1 ÷ 1.11^3 = 0.7312
For Year 4 = 1 ÷ 1.11^4 = 0.6587
So, the calculation of a Present value of all yearly cash inflows are shown below
= Year 1 cash inflow × Present Factor of Year 1 + Year 2 cash inflow × Present Factor of Year 2 + Year 3 cash inflow × Present Factor of Year 3 + Year 4 cash inflow × Present Factor of Year 4
= $50,000 × 0.9009 + $60,000 × 0.8116 + $70,000 × 0.7312 + $80,000 × 0.6587
= $45,045.05 + $48,697.35 + $51,183.40 + $52,698.48
= $197,624.28
So, the Net present value equals to
= $197,624.28 - $220,000
= -$22,375.80
We take the first four digits of the discount factor.
Aster Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $800,000 and yield the following expected cash flows. Management requires investments to have a payback period of two years, and it requires a 10% return on its investments. Period Cash Flow 1 $300,000 2 350,000 3 400,000
Answers
Answer:
This question is incomplete. However, since it is talking about payback period. You can calculate it as shown below.
Explanation:
Payback period is the number of years it takes a project's expected future cash inflows to fully recover the initial amount invested.
Year CF Net CF
0 -800,000 -800,000
1 300,000 300,000 -800,000 = -500,000
2 350,000 350,000 -500,000 = -150,000
3 400,000 400,000-150,000 = 250,000
Payback period = Last year with negative net CF + (absolute net CF that year/ total CF the following year)
Payback period = 2 + (150,000/400,000)
= 2 +0.375
= 2.375
Therefore, it will take 2.38 years which is more than the required 2 years so you should reject this project.
MaryLiz claims single having no exemptions. Her state tax deduction is 18% of her federal tax contribution.
Calculate the amount of state tax MaryLiz owes if her gross pay for two weeks is $800.
The following federal tax table is for biweekly earnings of a single person.
a.$16.02
b.$16.56
c.$92.00
d.$127.44
Answers
Answer:
state tax = $16.56
Explanation:
Given data:
state tax percentage is 18%
gross pay is $800
from federal tax table,
for 2 week earning federal tax is given as 92
state tax is calculated as
state tax = federal tax × state tax
= 92 × 0.18
state tax = $16.56
Answer:
the answer is b in other words
Explanation:
Macrosoft Company reports net income of $61,000. The accounting records reveal depreciation expense of $76,000 as well as increases in prepaid rent, accounts payable, and income tax payable of $56,000, $11,000, and $16,000, respectively. Prepare the operating activities section of Macrosoft's statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)
Answers
Answer:
Cashflow from Operating Activities $
Net income 61,000
Add: items not involving movement of cash
Depreciation 76,000
137,000
Changes in working capital:
Increase in prepaid rent (56,000)
Increase in accounts payable 11,000
92,000
Less: Tax 16,000
Cashflow from operating activities 76,000
Explanation:
Cashflow from operaing activities using the indirect method equals net income plus depreciation minus increase in prepaid rent plus increase in accounts payable minus tax.
The operating activities section of Macrosoft's statement of cash flows using the indirect method is $108,000.
Macrosoft Company Cash flows from operating activities
Net Income $61,000
Add: Non cash Expense Adjustments:
Depreciation $76,000
Change in Working Capital:
Prepaid rent ($56,000)
Accounts payable $11,000
Income taxes payable $16,000
Net Operating Cash flow $108,000
Inconclusion the operating activities section of Macrosoft's statement of cash flows using the indirect method is $108,000.
Learn more about operating activities here:https://brainly.com/question/15907976