Answer:
97.37 SF
Explanation:
Swiss bond purchase price = 1,000 SF
Swiss bond current value = PV at maturity + PV of coupon payments = (1000 / (1 + 0.10)^7) + (80 * (1 - (1 + 0.1)^-7) / 10% = 513.16 + 389.47 = 902.63 SF
Loss to investor who holds Swiss bond for a year = 1,000 - 902.53 = 97.37 SF
To determine the loss or gain for a Swiss investor when holding a bond that downgrades and undergoes currency depreciation, both interest payments and capital gains or losses must be considered. The investor will likely experience a loss due to the downgrade causing an increase in yield (and decrease in bond market value) and the currency depreciation. Calculating the exact loss requires additional information about the bond's market value after the downgrade.
Explanation:To determine the loss or gain to a Swiss investor who holds an 8-year AAA-rated Swiss bond over one year when there's a downgrade and currency depreciation involved, we need to calculate the total return on the bond by considering both the interest payments and the capital gain or loss. In this scenario, the bond has a face value of 2,200 Swiss francs (SF) and pays an annual coupon of 8 percent.
Initially, the bond is purchased for par and is later downgraded which causes the yield to increase to 10 percent. This results in the market value of the bond falling below its initial purchase price, as newer bonds with higher interest rates are more attractive to investors. Additionally, the depreciation of the SF versus the U.S. dollar, from $0.66667 to $0.74074 per SF1, affects the value of the coupon payments and redemption value when converted back to U.S. dollars.
Let's consider the investor's scenario:
At the start of the year, the investor receives a coupon payment which, when converted at the initial spot rate, amounts to SF(2,200 * 0.08) * $0.66667.At the end of the year, due to the bond's downgrade, its price falls to reflect the new yield of 10 percent, decreasing the market value of the bond.The investor incurs a capital loss on the bond due to the increased yield, and a currency exchange loss due to the depreciation of SF against USD.To calculate the exact figures, an investor would take into account the current market price of the bond (reflecting a 10% yield), the coupon payment received, the depreciation of the SF, and then summing these amounts to find the total return. However, without the exact market price of the bond post-downgrade, an accurate calculation is not possible in this case.
Overall, it is evident that the investor has likely experienced a loss, but the specific amount cannot be determined without additional information.
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Lois Bragg owns a small restaurant in Boston. Ms. Bragg provided her accountant with the following summary information regarding expectations for the month of June. The balance in accounts receivable as of May 31 is $56,000. Budgeted cash and credit sales for June are $145,000 and $591,000, respectively. Credit sales are made through Visa and MasterCard and are collected rapidly. Sixty five percent of credit sales is collected in the month of sale, and the remainder is collected in the following month. Ms. Bragg's suppliers do not extend credit. Consequently, she pays suppliers on the last day of the month. Cash payments for June are expected to be $710,000. Ms. Bragg has a line of credit that enables the restaurant to borrow funds on demand; however, they must be borrowed on the last day of the month. Interest is paid in cash also on the last day of the month. Ms. Bragg desires to maintain a $38,000 cash balance before the interest payment. Her annual interest rate is 10 percent. Required Compute the amount of funds Ms. Bragg needs to borrow for June. Determine the amount of interest expense the restaurant will report on the June pro forma income statement. What amount will the restaurant report as interest expense on the July pro forma income statement
Answer:
Compute the amount of funds Ms. Bragg needs to borrow for June.
$162,850Determine the amount of interest expense the restaurant will report on the June pro forma income statement.
$0, money is borrowed on June 30th there is no interest expense during JuneWhat amount will the restaurant report as interest expense on the July pro forma income statement
$1,357Explanation:
accounts receivable May 31 is $56,000.
budgeted cash sales for June $145,000
credit sales for June $591,000
65% of credit sales are collected in current month, 35% collected next month
suppliers are paid on the last day of the month
budgeted cash payments for June 30th = $710,000
cash balance $38,000
how much money does Ms. Bragg need to borrow on June 30?
total cash collections in June = $56,000 (from previous month) + $145,000 (cash sales) + $384,150 (65% of $591,000) = $585,150
payments - cash collected = $710,000 - $585,150 = $124,850
money borrowed on June 30 = $124,850 + $38,000 (desired cash balance) = $162,850
interest expense during July = $162,850 x 10% x 1/12 = $1,357
On January 1, Year 1, Barrett, Inc., purchased equipment and signed a note agreeing to pay $100,000 on December 31, Year 3. The market interest rate applicable to the note was determined to be 10%. What is the amount that will be credited to Note Payable in the journal entry dated January 1, Year 1?
Answer:
$75,131
Explanation:
The computation of the amount of note payable credited is shown below:
Notes payable is
= Agreed amount to pay × present value factor at 10% for 3 years
= $100,000 × 0.75131
= $75,131
By multiplying the agreed amount to pay with the present value factor at 10% for 3 years we can get the amount credited to the note payable
Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control costs and has established the following standards for the Maze toy: Direct materials: 8 microns per toy at $0.32 per micron Direct labor: 1.2 hours per toy at $6.50 per hour During July, the company produced 5,100 Maze toys. The toy's production data for the month are as follows: Direct materials: 78,000 microns were purchased at a cost of $0.28 per micron. 27,000 of these microns were still in inventory at the end of the month. Direct labor: 6,620 direct labor-hours were worked at a cost of $46,340.
Compute the direct materials price and quantity variances for July. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effectCompute the direct labor rate and efficiency variances for July. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect
Answer:
1.-3,120 Favorable variance.
2.$704Unfavorable variance
Explanation:
Material price variance:
Actual price is $0.28
Standard price 0.32
Actual quantity 78,000
Material price variance = (Actual price - Standard price) Actual quantity=
(0.28 - 0.32)*78,000
= (-0.04) 78,000= -3,120 Favorable variance.
2. Material quantity variance:
Actual quantity of material used (78,000 - 27,000) = 51,000
Standard quantity of material for the actual level of production (5,100 toys x 8 microns per toy) =48,800 toys
Standard price per unit of material = $0.32
Material quantity variance = (Actual quantity used - Standard quantity of material for actual level of production) Standard price
= (51,000 - 48,800)* $0.32
= (2,200) $0.32 = $704Unfavorable variance
Answer:
Explanation:
Std material Qty allowed (5100*8) = 40800
Std price: 0.32
Actual qty purchased: 78000
Actual qty used: 78000-27000 =51000
Actual price = 0.28
Material price variance= Actual Qty (Std price -Actual price)
78000 (0.32- 0.28) = 3120 fav
Material Qty variance= Std price (Std qty-Actual Qty )
0.32 (40800-51000) = 3264 Unfav
Std labor hours (5100*1.2) = 6120 Hours
Std rate per hour: 6.50
Actual Labor hours: 6620 hours
Actual labor cost = 46340
labor rate variance = Actual hours *Std rate-Actual labor cost
6620 *6.50 - 46340 = 3310 Unfav
Labor efficiency variance = Std price (Std hours -Actual hours )
6.50 (6120-6620 ) = 3250 Unfav
Sheldon, Inc. declared a stock dividend of 50,000 shares on a date when the company's common stock was selling for $ 18 per share. Prior to this date, Sheldon had 500,000 outstanding shares of $ 1 par value common stock. As a result of this stock dividend, Sheldon's common stock will ________, the additional paidminusin capital will ________, and the retained earnings will ________.
Answer:
As a result of this stock dividend, Sheldon's common stock will increase by $900,000, the additional paid in capital will not change, and the retained earnings will decrease by $900,000
Explanation:
Stock dividend is paying dividends by issuing additional stocks to shareholders.
In this case,50,000 shares were issued instead of paying cash dividends.
The stock dividend is financed from retained earnings and the amount involved is $900,000(50000*$18).
However,common stock would witness an increase of $900,000 by a way of credit and retained earnings would reduce by the same amount with no impact in the paid in capital in excess of par since the par value of the stock was not provided,hence it is no par value stock.
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $27,000 on the purchase date and the balance in eight annual installments of $4,000 on each June 30 beginning June 30, 2022. Assuming that an interest rate of 10% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment? 2. Johnstone needs to accumulate sufficient funds to pay a $570,000 debt that comes due on December 31, 2026. The company will accumulate the funds by making five equal annual deposits to an account paying 7% interest compounded annually. Determine the required annual deposit if the first deposit is made on December 31, 2021. 3. On January 1, 2021, Johnstone leased an office building. Terms of the lease require Johnstone to make 20 annual lease payments of $137,000 beginning on January 1, 2021. A 10% interest rate is implicit in the lease agreement. At what amount should Johnstone record the lease liability on January 1, 2021, before any lease payments are made?
Answer and Explanation:
As per the data given in the question,
1)
Cash flow Amount PV Factor at 10% for 8 annual installments Present Value
Installments $4,000 5.3349 $21,339.60
Down Payment $27,000 1 $27,000
Value of equipment $48,339.60
Refer to the PVIFA factor
2)
Table or calculator function FVAD of $ 1
Future value $570,000
n = 5
i = 7.00%
Divided it by FV factor 6.1533
Annual Deposit $92,633.22
Refer to the FVAD table
3)
Table or calculator function PVAD of $ 1
Payment $137,000
n = 20
i = 10.00%
Multiplied by PV factor 9.36492
Liability $1,282,994.04
Refer to the PVAD table
Johnstone Company's decisions about the equipment purchase, annual deposit, and leased office building are answered by using the Present Value Annuity (PVA) and Future Value Annuity (FVA) to find present values and annual deposits, respectively, at specified interest rates and time periods.
Explanation:1. To find the value of the equipment that Johnstone should record, we need to calculate the present value of the series of payments. The upfront payment of $27,000 is already in present value terms, so we just have to find the present value of the 8 annual installments of $4,000. We use the Present Value Annuity (PVA) table at a 10% interest rate for 8 periods. Then, add $27,000 to this present value to find the total equipment cost.
2. To find the required annual deposit, we're interested in the future value of an annuity (FVA). We want it to equal $570,000 at a 7% annual interest rate in 5 years. We use the FVA table to back into the required annual deposit amount.
3. For the amount Johnstone should record for the lease liability, we need to find the present value of the lease payments. Since the lease period is 20 years and the interest rate is 10%, we use the Present Value Annuity (PVA) table at a 10% interest rate for 20 periods to find this present value.
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"2. In 2020, Polar Engines issued 125,000 shares of its $1 par common stock at $12 per share. On September 30, 2022 Polar Engines repurchased 15,000 shares at $17 per share to hold in Treasury. Finally, on July 31, 2023 Polar Engines resold 10,000 of its treasury stock for $20 per share. What is the dollar amount of Treasury stock at the end of 2023?"
Answer:
Dollar amount of Treasury stock at the end = $85,000
Explanation:
Given:
Number of purchase treasury stock = 15,000 at $17
Number of sold treasury stock = 10,000
Computation:
Amount of purchase treasury stock = 15,000 × $17
Amount of purchase treasury stock = $255,000
Amount of sold treasury stock = 10,000 × Purchase price
Amount of sold treasury stock = 10,000 × $17
Amount of sold treasury stock = $170,000
Computation of dollar amount of Treasury stock at the end:
Dollar amount of Treasury stock at the end = Amount of purchase treasury stock - Amount of sold treasury stock
Dollar amount of Treasury stock at the end = $255,000 - $170,000
Dollar amount of Treasury stock at the end = $85,000
The COB Division of Northern Corp. produces and sells a product to both external customers and other Northern divisions. Per-unit data collected from COB's operations include: Outside sales price $800 Direct materials 350 Direct labour 75 Fixed overhead 180 If COB has excess capacity available to fulfill an inter-company order, what transfer price should be set
Answer:
$425
Explanation:
Data provided as per the question
Direct material = $350
Direct labor = $75
The computation of transfer price should be set is shown below:-
Transfer price should be = Direct materials + Direct labor
= $350 + $75
= $425
Note :- The minimum transfer price shall be "Variable Rate" if there is an excess capacity to produce for internal transfer.
Question 12 (3.333333333 points)
3
In one study, small businesses starting out spent what percentage of sales on
marketing?
6
5 to 10%
8 to 15%
9
15 to 19%
25 to 32%
12
Answer:
The correct answer is 25 to 32%
Answer:
15-19%
Explanation:
Textbook, Chapter 30
Some traits of successful individuals in our industry, as mentioned by Aimee Mangold of KOLTER Hospitality included: drive, intelligence, self-confidence, the desire to influence others, relevant knowledge, and honesty/moral character. Unfortunately, these same traits do not apply to other fields outside of the hospitality and tourism industry to any great extent.
A. True
B. False
Answer:
The answer is false (B)
Explanation:
From the question given, the answer is false.
Traits is used in many other fields outside hospitality, this is because, being intelligent, confidence, influencing, honest, and high morality, helps to build and develop strong, better relationships, and also trust which can take the business to a higher level or heights of success.
Salvia Company recently purchased a truck. The price negotiated with the dealer was $40,000. Salvia also paid sales tax of $2,000 on the purchase, shipping and preparation costs of $3,000, and insurance for the first year of operation of $4,000. At what amount should the truck be recorded on the balance sheet prior to recording depreciation expense
Answer:
The amount the truck should be recorded on the balance sheet prior to recording depreciation expense is $45,000.
Explanation:
The insurance premium of $4,000 would not be added to the cost of the truck. Insurance is usually for one year, it will be treated as prepayment and amortized over one year.
Based on IAS 16 Property, Plant and Equipment, the cost of an asset includes directly attributed costs that are necessary to bring the assets to the condition intended by management. The cost components, based on the standard, are:
purchase price plus import duties and taxesany directly attributable cost to bring the sset to the location and condition to be capable of operating in the manner intended by managementthe initial estimated of the cost of dismantling and removing the item and restoring the site on which it is locatedBased on the above, the cost is $40,000 + $2,000 + $3,000 = $45,000
Swan Textiles Inc. produces and sells a decorative pillow for $98.00 per unit. In the first month of operation, 2,300 units were produced and 1,800 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes: Variable manufacturing costs $23.00 per unit Variable marketing costs $6.00 per unit Fixed manufacturing costs $15 per unit Administrative expenses, all fixed $21.00 per unit Ending inventories: Direct materials -0- WIP -0- Finished goods 500 units What is the contribution margin using variable costing
Answer:
$124,200
Explanation:
Sales revenue = $98 * 1,800 = $176,400
Total variable costs = Total variable manufacturing costs + Total variable marketing costs = ($23 * 1,800) + ($6 * 1,800) = $ 52,200
Contribution margin using variable cost = Sales revenue - Total variable costs = $176,400 - $52,200 = $124,200.
Benefits of free-trade agreements Suppose that Indonesian consumers previously faced higher prices on shoes than they do under the free-trade agreement to which the nation currently adheres because there were only a few domestic firms supplying shoes to the Indonesian market due to trade restrictions.
Which of the following benefits of international trade describes this free-trade benefit that Indonesian consumers enjoy?
A. Enhanced flow of ideas
B. Increased competition
C. Lower unit costs through economies of scale
D. Increased variety of goods
Answer:
D. Increased variety of goods
Explanation:
A free trade agreement is when two or more economies lessen their trade barriers.
In this question, it was said that prices were higher before the trade agreement but prices fell after the trade agreement.
One of the causes of this price change could be an increase in the goods and services available to consumers and this would lead to a fall in price.
I hope my answer helps you
Answer: B. Increased competition
Explanation:
Due to Free Trade agreements, producers from outside the country are on equal footing with producers in Indonesia barring transportation costs. This means that the number of producers for shoes in total is high as there are both the local and foreign shoemakers to consider. This gives the industry a Perfect Competition market distinction which means that prices are set by the market to be at a point where it is lowest due to competition. In other words, because of the extra competition, Indonesians are enjoying cheaper shoes.
1. Soul Socket Inc. manufactures socket wrenches.
-For next month, the vice president of production plans on producing 4,450 wrenches per day.
-The company can produce as many as 5,000 wrenches per day, but is more likely to produce 4,500 per day.
-The demand for wrenches for the next three years is expected to average 4,250 wrenches per day.
-Fixed manufacturing costs per month total $374,000.
-The company works 22 days a month.
-Fixed manufacturing overhead is charged on a per-wrench basis.
Required: Answer a. – d. below
a. What is the theoretical fixed manufacturing overhead rate per wrench for the next month?
b. What is the practical fixed manufacturing overhead rate per wrench for the next month?
c. What is the normal fixed manufacturing overhead rate per wrench for the next month?
d. What is the master-budget fixed manufacturing overhead rate per wrench for the next month?
Answer:
a. $3.40 per wrench
b. $3.78 per wrench
c. $4 per wrench
d. $3.82 per wrench
Explanation:
a) Theoretical Fixed Manufacturing Overhead.
This is the cost associated with what the company can produce.
They can produce as much as 5,000 wrenches per day for 22 days on a budget of $374,000.
Theoretical Manufacturing Overhead is therefore,
= 374,000 / ( 5,000 * 22)
= $3.40 per wrench.
b. The Practical Fixed Overhead would be the costs to be incurred with the more likely level of production.
Company will more likely produce 4,500 wrenches a day.
Following from a,
= 374,000 / (4,500 * 22)
= 3.7778
= $3.78 per wrench.
c. The normal overhead is the cost associated when the company produces according to demand.
The demand is expected to be 4,250 wrenches for the next 3 years.
Therefore,
= 374,000 ( 4,250 * 22)
= $4 per wrench.
d. The master budget overhead rate is cost associated with the level the company Plans to produce.
Soul Socket plans to produce 4,450 wrenches a day.
Therefore,
= 374,000 (4,450 * 22)
= $3.82 per wrench.
Suppose seafood price and quantity data for the years 2000 and 2009 follow. Use 2000 as the base period. Seafood 2000 Qty. (lb) 2000 Price ($/lb) 2009 Price ($/lb) Halibut 75,190 2.01 2.33 Lobster 83,080 3.62 3.09 Tuna 50,779 1.87 1.97 (a) Compute a price relative for each type of seafood. (Round your answers to one decimal place.) Seafood Price Relative Halibut Lobster Tuna (b) Compute a weighted aggregate price index for the seafood catch. (Round your answer to one decimal place.)
Answer:
a) Price Relative for Halibut is 115.9 (1 d.p)
Price Relative for Lobster is 85.4 (1 d.p)
Price Relative for Tuna is 105.4 (1 d.p)
b) The Weighted Aggregate Price Index for the seafood catch is 98.4.
Explanation:
a) The Price Relative for a good refers to it's current price divided by it's base price times 100. It therefore measures a change in price across different periods.
Writing the formula as stated is,
Price Relative = Current Price / Base Price * 100
Price Relative for Halibut = 2.33/2.01 * 100
= 115.9 (1 d.p)
Price Relative for Lobster = 3.09/3.62 * 100
= 85.4 (1 d.p)
Price Relative for Tuna = 1.97/1.87 * 100
= 105.35
= 105.4 (1 d.p)
b) The Weighted Aggregate Price Index enables us to see how prices in a particular basket has changed over a period of time. It is calculated as follows,
Weighted Price Index = (Sum of Weighted Current Price ) / ( Sum of weighted Base Price) * 100
Sum of Weighted Current Price = (75,190 * 2.33) + (83,080 * 3.09) + ( 50,779 * 1.97)
= 538,124.53
Sum of Weighted Base Price = (75,190 * 2.01) + (83,080 * 3.62) + ( 50,779 * 1.87)
= 546,838.23
Weighted Price Index = (538,124.53 / 546,838.23) *100
= 98.4
The Weighted Aggregate Price Index for the seafood catch is 98.4.
UPS, a delivery services company, has a beta of 1.4, and Wal-Mart has a beta of 0.9. The risk-free rate of interest is 4% and the market risk premium is 6%. What is the expected return on a portfolio with 50% of its money in UPS and the balance in Wal-Mart? Group of answer choices
Answer:
10.9%
Explanation:
to calculate the expected return of the portfolio, we first need to calculate the portfolio's beta:
the portfolio beta = (beta UPS stock x weight UPS stock) + (beta Walmart stock x weight Walmart) = (1.4 x 50%) + (0.9 x 50%) = 0.7 + 0.45 = 1.15
portfolio's expected return = risk free rate + (portfolio beta x market risk premium) = 4% + (1.15 x 6%) = 4% + 6.9% = 10.9%
The expected return on the portfolio is calculated using the CAPM for each stock and then finding the weighted average. For the given portfolio with 50% in UPS and 50% in Wal-Mart, the expected return is 10.9%.
Explanation:To calculate the expected return on a portfolio with different investments, we can use the concept of a weighted average of the individual expected returns. Each investment's expected return is calculated using the Capital Asset Pricing Model (CAPM), which takes into account the risk-free rate, beta (a measure of volatility or systematic risk compared to the market), and the market risk premium.
Using the CAPM, the expected return for UPS (with a beta of 1.4) is:
Expected ReturnUPS = Risk-Free Rate + BetaUPS x Market Risk Premium = 4% + 1.4 x 6% = 12.4%
And for Wal-Mart (with a beta of 0.9):
Expected ReturnWal-Mart = Risk-Free Rate + BetaWal-Mart x Market Risk Premium = 4% + 0.9 x 6% = 9.4%
Now, to find the expected return of the portfolio:
Expected ReturnPortfolio = (WeightUPS x Expected ReturnUPS) + (WeightWal-Mart x Expected ReturnWal-Mart)
= (0.5 x 12.4%) + (0.5 x 9.4%)
= 6.2% + 4.7%
= 10.9%
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LBC Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.3 hours of direct labor at the rate of $19.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June. The budgeted direct labor cost per unit of Product WZ would be: Multiple Choice $19.00 $5.60 $20.10 $43.70
Answer:
$43.70
Explanation:
Data provided
Each Unit Require = 2.3 hours
Direct Labor Rate Per Hour = $19.00
The computation of budgeted direct labor cost per unit is shown below:-
Budgeted direct labor cost per unit = Each Unit Require × Direct Labor Rate Per Hour
= 2.3 hours × $19.00 rate per hour
= $43.70
Therefore for computing the budgeted direct labor cost per unit we simply multiply the each unit require with direct labor rate per hour
Jiminy's Cricket Farm issued a 30-year, 7.8 percent semiannual bond 5 years ago. The bond currently sells for 92 percent of its face value. The company’s tax rate is 40 percent. Required: (a) What is the pretax cost of debt? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Pretax cost of debt % (b) What is the aftertax cost of debt? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Aftertax cost of debt % (c) Which is more relevant, the pretax or the aftertax cost of debt?
Answer:
Pretax cost of debt is 8.58%
after tax cost of debt is 5.15%
After tax cost of debt of 5.15% is more relevant because that reflects the true cost of debt bearing in mind that debt has a tax advantage(tax shield).
Explanation:
The pretax cost of debt can be computed using the rate formula in excel as follows:
=rate(nper,pmt,-pv,fv)
nper is the number of coupons the bond would pay i.e 25years(years to maturity)*2=50
pmt is the semiannual coupon interest=$1000*7.8%*6/12=$39
pv is the present price of the bond=$1000*92%=$920
fv is the face value of $1000
=rate(50,39,-920,1000)=4.29%
Annual yield=4.29%*2=8.58%
after tax cost of debt=pretax cost of debt*(1-t)
t is the tax rate of 40%
after tax cost of debt=8.58%*(1-0.4)=5.15%
Sonny's Super Market has installed a self-service checkout counter, and wishes to understand how this has affected customer service. Shoppers arrive on average the rate of one every other minute (Poisson distribution). Each shopper takes an average of 84 seconds to use the checkout, and that time is exponentially distributed. a. Calculate how long it takes, on average, for a shopper at the self-service counter, including how long they wait in line and how long it takes them to do their own checkout.'
Answer:
The Expected time a customer spends in the system is 4
Explanation:
According to the given data we have the following:
Arrival rate A = 1 every other minute = 30/hour or (30/60) per minute
Service rate S = 84 seconds = 60×60/84= 42.86 customers per hour
System utilization factor P = A/S = 30/42.86 = 0.699
Length of the system L = P/(1-P) = 0.699/(1-0.699) = 2.322
Therefore, Expected time a customer spends in the system = L/A = 2.322/(30/60) = 4.644=4
Ana was complaining about her workload before the staff meeting began. Later, when the manager announced that twelve parking spaces would be lost as a result of construction across the street, she raised her hand and said, "Then where, exactly, do you expect us to park?" The manager tried to provide some recommendations, but Ana continued to complain until the manager gave up and announced that the meeting was over.
The complete question is:
Ana was complaining about her workload before the staff meeting began. Later, when the manager announced that twelve parking spaces would be lost as a result of construction across the street, she raised her hand and said, "Then where, exactly, do you expect us to park?" The manager tried to provide some recommendations, but Ana continued to complain until the manager gave up and announced that the meeting was over.
What should Ana do to make the next meeting more effective and productive?
Answer:
Bring a positive attitude
Explanation:
In this scenario Ana was already frustrated by the excess workload she has before attending the meeting. So when the manager raised the issue of construction affecting parking spaces she expressed a negative reaction, and kept complaining until the manager gave up and announced that the meeting was over.
For the next meeting to be more productive Ana should bring a positive mindset, and consider recommendations provided by the manager.
This will result in her working collaboratively with the manager to find solutions to the parking space problem.
Joseph Company is considering replacing an existing piece of machinery with newer technology. In deciding whether to replace the existing machinery, management should consider which costs as relevant? Multiple Choice Historical costs associated with the old machine. Future costs which will be classified as fixed rather than variable. Sunk costs associated with the old machine. Future costs which will be different under the two alternatives.
Answer:
Future costs which will be different under the two alternatives.
Explanation:
In simple words, while considering to replace the new machinery every entity must focus comely on two main aspects which are the historical cost or the cost at which the old machine could be sold and the future costs which will significantly affects the potential profits of the subject firm.
However, due to various different methods of depreciation and future value estimations one should consider all the methods in hand and then take the decision.
Cosmo contributed land with a fair market value of $332,500 and a tax basis of $138,000 to the Y Mountain partnership in exchange for a 40 percent profits and capital interest in the partnership. The land is secured by $163,000 of nonrecourse debt. Other than this nonrecourse debt, Y Mountain partnership does not have any debt
a. How much gain will Cosmo recognize from the contribution? (Leave no answer blank. Enter zero if applicable.)
b. What is Cosmo’s tax basis in his partnership interest?
Answer:
a. Zero gain
b. Cosmo’s tax basis in his partnership interest is $55,200
Explanation:
a. According to the given data there is a Zero gain, therefore Cosmo will recognize $ 0 gain from the contribution.
b. In order to calculate Cosmo’s tax basis in his partnership interest we would have to make the following calculation:
Cosmo’s tax basis in his partnership interest= tax basis to the Y Mountain partership×percentage of profits and capital interest in the partnership
Cosmo’s tax basis in his partnership interest=$138,000×40%
Cosmo’s tax basis in his partnership interest=$55,200
Cosmo’s tax basis in his partnership interest is $55,200
Final answer:
Cosmo will recognize $0 in gain from the contribution of land to the Y Mountain partnership. His initial tax basis in the partnership interest will also be $0 after accounting for relief of the nonrecourse debt.
Explanation:
Calculation of Gain Recognition and Tax Basis:
Cosmo contributed land to the Y Mountain partnership which triggers certain tax considerations. Firstly, the gain recognition:
Cosmo would not recognize any gain on the contribution of property to a partnership in exchange for an interest in the partnership under Section 721 of the Internal Revenue Code, assuming the contribution did not result in a change of 80% or more of the ownership of the partnership.Thus, the gain Cosmo recognizes is:
Recognized Gain: $0Next, for the tax basis in the partnership interest:
The basis of his land contributed is $138,000.However, since the land is subject to a $163,000 nonrecourse debt which the partnership assumes, Cosmo must reduce his basis by the amount of the debt relieved.Therefore, Cosmo's initial basis would be decreased by the nonrecourse debt.Adjusted Tax Basis = $138,000 - $163,000 = -$25,000. However, since basis cannot be negative, Cosmo's basis would be $0. It's important to note that future income allocations or additional contributions could increase this basis.In conclusion, Cosmo's initial tax basis in the partnership is $0.
Keating Co. is considering disposing of equipment with a cost of $72,000 and accumulated depreciation of $50,400. Keating Co. can sell the equipment through a broker for $26,000 less 10% commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $48,000. Keating will incur repair, insurance, and property tax expenses estimated at $8,000 over the five-year period. At lease-end, the equipment is expected to have no residual value. The net differential income from the lease alternative is
a. $24,900
b. $19,920
c. $16,600
d. $11,620
Answer:
Option (c) : $16,600
Explanation:
As per the data given in the question,
For computing the net differential income we need to do following calculations which are shown below:
Sales consideration = $26,000
Commission = $26,000×10%
= $2,600
Net income = $26,000 - $2,600
= $23,400
Lease amount = $48,000
Repair, insurance, and property tax expenses = $8,000
Net income = $48,000 - $8,000
= $40,000
Income if offer of lease accepted = $40,000
Income if equipment is sold through a broker = $23,400
Net differential income from the lease alternative =$40,000 - $23,400
= $16,600
Hence, option (c) : $16,600 is correct answer.
Joslyn Company manufactures metal brackets. The estimated number of metal bracket sales for the first three months of the current year is: Month Unit Sales January 1,250 February 1,400 March 1,200 Finished goods inventory at the end of last December was 300 units. Desired ending finished goods inventory is equal to 20 percent of the next month's sales. Joslyn Company expects to sell the brackets for $20 each. How many brackets should Joslyn produce in February?
Answer:
Production= 1,240 units
Explanation:
Giving the following information:
Sales:
February= 1,250
March= 1,200
Desired ending finished goods inventory is equal to 20 percent of the next month's sales.
To determine the production required for February, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
Production= 1,250 + (1,200*0.2) - (1,250*0.2)
Production= 1,240 units
Poodle Corporation was organized on January 3, 2021. The firm was authorized to issue 83,000 shares of $5 par common stock. During 2021, Poodle had the following transactions relating to shareholders' equity: Issued 26,000 shares of common stock at $6.40 per share. Issued 23,000 shares of common stock at $9.30 per share. Reported net income of $110,000. Paid dividends of $50,000. What is total paid-in capital at the end of 2021
Answer:
$380,300
Explanation:
Paid-in-capital is the amount of cash received from the investors of the company for issuance of stocks. Paid-in-capital is recorded for both common and preferred stock separately. The value st par is recorded separately from the value excess of par of each stock type.
Issue of stock
first issuance
Common stock = 26,000 shares x $5 = $130,000
Add-in capital excess of par- Common shares = 26,000 shares x ( $6.4 - $5 )
Add-in capital excess of par- Common shares = $36,400
second issuance
Common stock = 23,000 shares x $5 = $115,000
Add-in capital excess of par- Common shares = 23,000 shares x ( $9.3 - $5 )
Add-in capital excess of par- Common shares = $98,900
Total Paid-in-capital = ($130,000 + $36,400) + ($115,000 + $98,900)
Total Paid-in-capital = $166,400 + $213,900 = $380,300
To find the total paid-in capital for Poodle Corporation at the end of 2021, add the amounts received from the issuance of common stock. The total paid-in capital at the end of 2021 is $380,300.
Total Paid-In Capital Calculation:
Calculate the total paid-in capital by adding the amounts received from the issuance of common stock. $6.40 per share * 26,000 shares + $9.30 per share * 23,000 shares = Total Paid-In Capital.
Calculate the total paid-in capital: $166,400 + $213,900 = Total Paid-In Capital.
Total Paid-In Capital at the end of 2021 is $380,300.
Segment Revenue Horizontal Analysis Starbucks Corporation reported the following geographical segment revenues for a recent and a prior fiscal year: Recent Year (in millions, rounded) Prior Year (in millions, rounded) Americas $13,293 $11,980 EMEA* 1,217 1,295 China/Asia Pacific 2,396 1,130 Channel Development** 1,731 1,546 Other 526 497 Total $19,163 $16,448 *Europe, Middle East, and Africa **Sells packaged coffee and teas globally a. Prepare a horizontal analysis of the segment data using the prior year as the base year. Round all percents to one decimal place. Enter all amounts in millions. If required, use minus sign to indicate the decreasing values.
Answer and Explanation:
The Preparation of horizontal analysis of the segment data is shown below:-
Starbucks Corporation
Horizontal analysis segment revenue statements
For years ended prior and recent
Recent Prior year/ Increase or Percentage
year Base year Reduced difference
a b c = a - b d = (c÷b) × 100
Revenue
Americas $13,293 $11,980 $1,313 11.00
Europe, Middle East,
and Africa $1,217 $1,295 -$78 -6.00
China/Asia
pacific $2,396 $1,130 $1,266 112.00
Channel
development $1,731 $1,546 $185 12.00
Other $526 $497 $29 5.80
Total $19,163 $16,448 $2,715 16.50
It can be made relevant in horizontal analysis if specific time figures are available for analysis.
Therefore to reach the Percentage difference we simply first made the difference of recent year and prior year/base year after that we divide the increase or reduced by prior year/base year and convert into percentage by multiply of 100.
Final answer:
A horizontal analysis of Starbucks' segment revenue involves calculating the change in revenue between two fiscal years and expressing this as a percentage of the prior year. The analysis shows growth in the Americas, China/Asia Pacific, Channel Development, and Other segments, and a decrease in the EMEA segment.
Explanation:
The student is performing a horizontal analysis of segment revenue data for Starbucks Corporation. The goal is to examine the changes in revenue over two fiscal years, using the prior year as a base year. To do so, one will calculate the difference in revenue for each segment between the recent year and the prior year, and then translate this difference into a percentage of the prior year's figures. Here's a breakdown of the horizontal analysis:
Americas
Recent Year: $13,293 millionPrior Year: $11,980 millionChange: $13,293m - $11,980m = $1,313mPercentage Change: ($1,313m / $11,980m) x 100 = 10.96%EMEA (Europe, Middle East, and Africa)
Recent Year: $1,217 millionPrior Year: $1,295 millionChange: $1,217m - $1,295m = -$78mPercentage Change: (-$78m / $1,295m) x 100 = -6.02%China/Asia Pacific
Recent Year: $2,396 millionPrior Year: $1,130 millionChange: $2,396m - $1,130m = $1,266mPercentage Change: ($1,266m / $1,130m) x 100 = 112.04%Channel Development
Recent Year: $1,731 millionPrior Year: $1,546 millionChange: $1,731m - $1,546m = $185mPercentage Change: ($185m / $1,546m) x 100 = 11.97%Other
Recent Year: $526 millionPrior Year: $497 millionChange: $526m - $497m = $29mPercentage Change: ($29m / $497m) x 100 = 5.84%These calculations reveal the growth or decline for each segment over the period being studied.
Sharon Foods Company reported the following transactions for September 2017. a) The business received a $21,000 cash contribution from the owner. It was credited to Sharon, Capital. b) The business purchased office equipment for $9,000 for which $4,000 cash was paid and the balance was put on a note payable. c) Paid insurance expense of $1,500 cash. d) Paid the September utility bill for $800 cash. e) Paid $1,600 cash for September rent. f) The business had sales of $12,000 in September. Of these sales, 40% were cash sales, and the balance was credit sales. g) The business paid $8,000 cash for office furniture. What are the total liabilities at the end of September, 2017
Answer:
The total liabilities at end of September is $5,000
Explanation:
The $21,000 received from business owner is capital which would have been credited to capital and debited to cash.
The purchase of office equipment meant that cash decreased by $4000,a credit of $4,000 and a credit of $5,000 to notes payable while the $9000 is debited to equipment account.
The insurance expense,utility bill,rent as well as the purchase of office furniture were all cash settled and had no liability impact,hence the only liability outstanding at month end is the notes payable on office equipment of $5,000
Page Company makes 30% of its sales for cash and 70% on account. 60% of the credit sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following information has been gathered for the current year: Month 1 2 3 4 Total sales $60,000 $70,000 $50,000 $30,000 Total cash receipts in Month 4 will be:
Final answer:
Total cash receipts in Month 4 will be $41,650.
Explanation:
To calculate the total cash receipts in Month 4, we need to determine the amount collected in the month of sale, the following month, and the second month following sale, as well as the uncollectible amount.
Month 1: Total sales = $60,000
Cash sales = 30% of total sales = 0.3 * $60,000 = $18,000
Credit sales = 70% of total sales = 0.7 * $60,000 = $42,000
Amount collected in Month 1 = 60% of credit sales = 0.6 * $42,000 = $25,200
Month 2: Total sales = $70,000
Cash sales = 30% of total sales = 0.3 * $70,000 = $21,000
Credit sales = 70% of total sales = 0.7 * $70,000 = $49,000
Amount collected in Month 2 = 25% of credit sales = 0.25 * $49,000 = $12,250
Month 3: Total sales = $50,000
Cash sales = 30% of total sales = 0.3 * $50,000 = $15,000
Credit sales = 70% of total sales = 0.7 * $50,000 = $35,000
Amount collected in Month 3 = 12% of credit sales = 0.12 * $35,000 = $4,200
Total cash receipts in Month 4 = Amount collected in Month 1 + Amount collected in Month 2 + Amount collected in Month 3
Total cash receipts in Month 4 = $25,200 + $12,250 + $4,200
= $41,650
Iaci Company makes two products from a common input. Joint processing costs up to the split-off point total $42,000 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Required: What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point
Questions
Iaci Company makes two products from a common input. Joint processing costs up to the split-off point total $42,000 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs $22,400 $19,600 $42,000 Sales value at split-off point $32,000 $28,000 $60,000 Costs of further processing $11,600 $25,300 $36,900 Sales value after further processing $44,800 $53,200 $98,000 Required: (a) What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point?
Answer:
Net advantage from further processing $1,200
Explanation:
A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.
Also note that all the joint costs incurred up to the split-off point are irrelevant to the decision to process further any of the .
Net monetary advantage of product X
$
Sales revenue after the split-off point 44,800
Sales revenue at the split-off point (32,000)
Additional sales revenue 12,800
Further processing cost (11,600)
Net advantage from further processing 1,200
Net advantage from further processing $1,200
Quantum Company uses the highminuslow method to estimate the cost function. The information for 2017 is provided below: Machineminushours Labor Costs Highest observation of cost driver 1 comma 000 $ 32 comma 000 Lowest observation of cost driver 200 $ 16 comma 000 What is the estimated cost function for the above data? A. y = 32 comma 000 + 32X B. y = 12 comma 000 + 20X C. y = 20 comma 000 + 80X D. y = 16 comma 000 + 40X
Answer:
The correct option is B,y = 12 comma 000 + 20X
Explanation:
Total =fixed cost+(variable cost*X)
where X is quantity of items produced
Variable cost=Highest observation cost-lowest observation/highest machine hours-lowest machine hours
variable cost=$32,000-$16,000/(1000-200)=$20
Substituting the variable cost in highest activity figures,we would arrive at fixed cost
$32000=fixed cost+($20*1000)
$32000=fixed cost+$20,000
fixed cost=$32,000-$20,000=$12,000
The correct option is B,y=12,000+20X
The y stands for total cost
The initial cost of a packed-bed degassing reactor for removing trihalomethanes from potable water is $84,000. The annual operating cost for power, site maintenance, etc. is $13,000. If the salvage value of the pumps, blowers, and control systems is expected to be $9,000 at the end of 10 years, the AW of the packed-bed reactor, at an interest rate of 8% per year, is closest to:
Answer:
-$24,900
Explanation:
Solution
Given:
The annual payment is defined as:
A = F [i /(1 + i)^n -1
Where,
F = The sum of amount accumulated
i = The interest rate (annual)
n = the number of years
The standard notation equation becomes this
=A = F (A/F, i, n)
Now,
The annual payment is A = P [ i(1 + i)^n / (1 + i)^n -1
where
P = The present value,
i = The interest rate (annual)
n = the number of year
The standard notation equation becomes this
=A = P (A/P, i, n)
We recall that,
The first cost P is $84,000.
Now,
A = $13,000, S = $9,000, n = 10 years, and i = 8 %
Thus,
AW =- 84000 ( A/ P 8% 10 ) - 13000 + 9000 (A/F, 8%, 10)
=-84000 (0.149) - 13000 + 9000 (0.069)
= -$24,900
The AW of the packed-bed reactor is calculated by finding the PW of the initial cost, annual operating costs, and salvage value, and then subtracting the PW of the salvage value from the sum of the other two. The AW is calculated to be $136,616.54.
Explanation:The question asks for the Annual Worth (AW) of the packed-bed degassing reactor. To calculate the AW, we need to calculate the Present Worth (PW) of the initial cost, annual operating costs, and salvage value, and then subtract the PW of the salvage value from the PW of the costs.
To calculate the PW of the initial cost, we divide it by (1 + interest rate) to the power of the number of years. PW of initial cost = $84,000 / (1 + 0.08)^10 = $36,610.13.
The PW of the annual operating costs can be calculated as follows: Cost per year * [1 - (1 + interest rate)^(-number of years)] / interest rate. PW of annual operating costs = $13,000 * [1 - (1 + 0.08)^(-10)] / 0.08 = $103,894.42.
The PW of the salvage value is calculated using the same formula as the PW of the initial cost. PW of salvage value = $9,000 / (1 + 0.08)^10 = $3,888.01.
Finally, to find the AW, we subtract the PW of the salvage value from the sum of the PW of the initial cost and the PW of the annual operating costs. AW = $36,610.13 + $103,894.42 - $3,888.01 = $136,616.54. Therefore, the AW of the packed-bed reactor is closest to $136,616.54.
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