Natsam Corporation has $285 million of excess cash. The firm has no debt and 549 million shares outstanding with a current market price of $11 per share. Natsam's board has decided to pay out this cash as a one-time dividend.
1. What is the ex-dividend price of a share in a perfect capital market?
2. If the board instead decided to use the cash to do a one-time share repurchase, in a perfect capital market, 3. what is the price of the shares once the repurchase is complete?
3. In a perfect capital market, which policy in part (a) or (b) makes investors in the firm better off?
Answers
Answer:
1. The ex-dividend price of a share is $10.49
2. The price of the shares once the repurchase is complete is $11 per hare
3. In a perfect capital market, the policy b would make investors in the firm better off
Explanation:
1. In order to calculate the ex-dividend price of a share in a perfect capital market we would have to make the following calculation:
ex-dividend price of a share=current market price-dividend per share
current market price=$11 per share
dividend per share= $285 million/549 million
dividend per share=$0.51 per share
Therefore, ex-dividend price of a share=$11-$0.51
ex-dividend price of a share=$10.49
2. According to the given data the current market price is $11 per share, therefore, the price of the shares once the repurchase is complete If the board instead decided to use the cash to do a one-time share repurchase is $11 per share
3. In a perfect capital market, the policy b would make investors in the firm better off
Related Questions
908 25. द्वितीय लेखाविधि तथा विश्लेषण Nuwakot Consultancy was organized on June 2, 2019, by a group of accountants to provide accounting and tax services to small businesses in Kathmandu. The following transactions occurred during the first month of business. June 2 June 5 June 8 June 15 June 17 June 23 June 28 June 29 Received contributions of Rs. 10,000 from each of the three owners of the business is exchange for shares of stock. Purchased a computer system for Rs. 12,000. The agreement with the vendor requires a down payment of Rs. 2,500 with the balance in 60 days. Signed a two-year promissory note at the bank and received cash of Rs. 20,000. Billed Rs. 12,350 to clients for the first-half of June. Paid a Rs. 900 bill from the local newspaper for advertising for the month of June. Received the amounts billed to clients for services performed during the first half of the month. Received and paid gas, electric, and water bills. The amount is Rs. 2,700. Received the landlord's bill for Rs. 2,200 for rent on the office space that Nano Consultancy leases. The bill is payable by the 10th of the following month. Paid salaries and wages for June. The total amount is Rs. 5,670. Billed Rs. 18,400 to clients for the second half. Declared and paid dividends in the amount of Rs. 6,000. June 30 June 30 June 30 Required: (a) Journal entries on the books of Nuwakot Consultancy. (For the transactions entered into during the month. Ignore depreciation and interest expenses). (b) Post the transactions into T-accounts. (c) A trial balance at June 30, 2019.
Answers
1. The Journal Entries on the books of Nuwakot Consultancy for the June Transactions are as follows:
Journal Entries:Date Transactions Debit Credit
June 2 Cash Rs. 30,000
Common Stock Rs. 30,000
June 5 Computer Rs. 12,000
Cash Rs. 2,500
Accounts Payable Rs. 9,500
June 8 Cash Rs. 20,000
Notes Payable Rs. 20,000
June 15 Accounts Receivable Rs. 12,350
Service Revenue Rs. 12,350
June 17 Advertising Expense Rs. 900
Cash Rs. 900
June 23 Cash Rs. 12,350
Accounts Receivable Rs. 12,350
June 28 Utility Expense Rs. 2,700
Cash Rs. 2,700
June 29 Rent Expense Rs. 2,200
Rent Payable Rs. 2,200
June 30 Salaries &
Wages Expense Rs. 5,670
Cash Rs. 5,670
June 30 Accounts Receivable Rs. 18,400
Service Revenue Rs. 18,400
June 30 Dividends Rs. 6,000
Cash Rs. 6,000
2. The Posting of the transactions into T-accounts is as follows:
Cash AccountDate Transactions Debit Credit
June 2 Common Stock Rs. 30,000
June 5 Computer Rs. 2,500
June 8 Notes Payable Rs. 20,000
June 17 Advertising Expense Rs. 900
June 23 Accounts Receivable Rs. 12,350
June 28 Utility Expense Rs. 2,700
June 30 Salaries and Wages Expense Rs. 5,670
June 30 Dividends Rs. 6,000
June 30 Balance Rs. 44,580
Rs. 62,350 Rs. 62,350
Common StockDate Transactions Debit Credit
June 2 Cash Rs. 30,000
ComputerDate Transactions Debit Credit
June 5 Cash Rs. 2,500
June 5 Accounts Payable Rs. 9,500
June 30 Balance Rs. 12,000
Accounts PayableDate Transactions Debit Credit
June 5 Computer Rs. 9,500
Notes PayableDate Transactions Debit Credit
June 8 Cash Rs. 20,000
Rent PayableDate Transactions Debit Credit
June 29 Rent Expense Rs. 2,200
Accounts ReceivableDate Transactions Debit Credit
June 15 Service Revenue Rs. 12,350
June 23 Cash Rs. 12,350
June 30 Service Revenue Rs. 18,400
Service RevenueDate Transactions Debit Credit
June 15 Accounts Receivable Rs. 12,350
June 30 Accounts Receivable Rs. 18,400
June 30 Balance Rs. 30,750
Advertising ExpenseDate Transactions Debit Credit
June 17 Cash Rs. 900
Utility ExpenseDate Transactions Debit Credit
June 28 Cash Rs. 2,700
Rent ExpenseDate Transactions Debit Credit
June 29 Rent Payable Rs. 2,200
Salaries and Wages ExpenseDate Transactions Debit Credit
June 30 Cash Rs. 5,670
DividendsDate Transactions Debit Credit
June 30 Cash Rs. 6,000
3. The preparation of the trial balance at June 30, 2019, is as follows:
Date Transactions Debit Credit
Cash Rs. 44,580
Common Stock Rs. 30,000
Computer Rs. 12,000
Accounts Payable Rs. 9,500
Notes Payable Rs. 20,000
Rent Payable Rs. 2,200
Accounts Receivable Rs. 18,400
Service Revenue Rs. 30,750
Advertising Expense Rs. 900
Utility Expense Rs. 2,700
Rent Expense Rs. 2,200
Salaries and Wages Expense Rs. 5,670
Dividends Rs. 6,000
Totals Rs. 92,450 Rs. 92,450
What are the journal entries?Journal entries are made to record the transactions of a business as they occur daily.
Journal entries help post transactions to the general ledger (T-accounts).
With a trial balance, the balances in the general ledger are summarized to prepare financial statements.
Transaction Analysis:June 2 Cash Rs. 30,000 Common Stock Rs. 30,000
June 5 Computer Rs. 12,000 Cash Rs. 2,500 Accounts Payable Rs. 9,500
June 8 Cash Rs. 20,000 Notes Payable Rs. 20,000
June 15 Accounts Receivable Rs. 12,350 Service Revenue Rs. 12,350
June 17 Advertising Expense Rs. 900 Cash Rs. 900
June 23 Cash Rs. 12,350 Accounts Receivable Rs. 12,350
June 28 Utilities Expense Rs. 2,700 Cash Rs. 2,700
June 29 Rent Expense Rs. 2,200 Rent Payable Rs. 2,200
June 30 Salaries and Wages Expense Rs. 5,670 Cash Rs. 5,670
June 30 Accounts Receivable Rs. 18,400 Service Revenue Rs. 18,400
June 30 Dividends Rs. 6,000 Cash Rs. 6,000
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Suppose the price of bread decreases. What will happen in the market for bread?
a) The supply curve will shift to the right
b) The supply curve will shift to the left
c) There will be a movement along the supply curve toward a higher quantity supplied
d) There will be a movement along the supply curve toward a lower quantity supplied
Answers
Bread becomes less expensive. b) A leftward change in the supply curve.
What transpires in a marketplace when a good's price drops?When the value of an item drops, more of that good is demanded.. assuming all other factors influencing purchase decisions stay constant, the link between the amount desired and the cost of a product. The demand curve serves as an illustration of demand, which is a list of amounts at various prices.
whether it changes to a right or left when the supply curve?When demand is steady and supply is increasing, the supply curve moves to the right, creating an intersection where quantity and prices are lower. However, if supply changes negatively ,increases prices and decreases quantities by moving this curve to the left.
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Scores for The Big Five personality test are presented as percentiles. true or false
Answers
Scores for The Big Five personality test are presented as percentiles: True.
What is a personality test?A personality test can be defined as a psychological tool that is designed and developed to measure the characteristic patterns of traits and behavior that an individual exhibit under certain circumstances, conditions and across various situations.
The Big Five personality test.In Psychology, the Big Five personality test comprises five (5) traits and these include the following:
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Discuss the functions of government necessary for a country
Answers
The functions of government are crucial for the proper functioning and development of a country. These functions can vary depending on the type of government system in place, but there are several key functions that are commonly considered necessary for a country's stability and progress.
1. Legislation and Governance: One of the primary functions of government is to create and enforce laws that maintain order, protect individual rights, and promote the welfare of the citizens. Governments establish institutions and frameworks for governance, ensuring the rule of law and providing a system of justice.
2. Defense and Security: Governments are responsible for safeguarding the country and its citizens from external threats. This involves maintaining armed forces, intelligence agencies, and diplomatic relations to protect national security interests.
3. Economic Management: Governments play a crucial role in managing and regulating the economy. They establish fiscal and monetary policies, oversee financial institutions, promote trade, and create an environment that supports economic growth and stability. Government intervention is often necessary to address market failures, promote fair competition, and protect consumers.
4. Social Welfare: Governments have a responsibility to ensure the well-being and social welfare of their citizens. This includes providing basic services such as healthcare, education, social security, and infrastructure development. Governments also implement social policies to address poverty, inequality, and promote equal opportunities.
5. Public Services: Governments are responsible for delivering essential public services, such as transportation, utilities, public safety, and environmental protection. These services are necessary for the functioning of society and improving the quality of life for citizens.
6. Diplomacy and International Relations: Governments engage in diplomatic activities and maintain relationships with other nations. They negotiate treaties, participate in international organizations, and represent the country's interests abroad. Governments also address global challenges, such as climate change and human rights, through international cooperation.
7. Public Communication and Information: Governments have a role in providing transparent and accurate information to the public. They engage in public communication, disseminate information, and promote citizen engagement and participation in the decision-making process.
These functions of government are essential for maintaining social order, promoting economic growth, protecting citizens' rights, and ensuring the overall well-being of a country. Effective governance requires a balance between these functions, adaptability to changing circumstances, and responsiveness to the needs and aspirations of the citizens.
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What is one benefit of a savings account?
Answers
Explanation:
the benefits of a savings account is to be secure from thief
Type the correct answer in the box. Spell all words correctly.
Which process does a court use to select a jury?
The court selects a jury from a jury pool through a process known as _____.
Answers
Lawyers and judges select juries by a process known as “voir dire,” which is Latin for “to speak the truth.” In voir dire, the judge and attorneys for both sides ask potential jurors questions to determine if they are competent and suitable to serve in the case.
geo corporation issues stock to investors for $100,000. recording this transaction will include which of the following?
Answers
Option A is Correct. Investors can purchase shares of Geo Corporation for $100,000. Credit common stock will be included in the transaction's records.
All of the transactions recorded using the double-entry bookkeeping system are compiled in a general ledger. Each transaction using this method impacts at least two different accounts; one account is debited and the other is credited. The total debit amount and total credit amount must always be equal.
The Guest Folio, sometimes referred to as the Guest Account Card, is regarded as the hotel's principal bill. Each resident guest's credit and cash purchases are recorded in their guest folio. The four components, namely income, expense, drawing, and capital accounts, may have an impact on the owner's equity. Revenue and owner investment are transactions that raise equity.
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Correct Question:
Geo corporation issues stock to investors for $100,000. recording this transaction will include which of the following?
A. Credit common stock.
B. Credit revenues.
C. Debit to cash.
D. Debit to retained earnings.
15. What is the net operating income for the year?
Answers
Where the above conditions are given, the net operating income for the year is $785,700
How is this so?Sales revenue - Cost of goods sold = Gross profit
Gross profit - Selling and administrative expenses = Operating income
Sales revenue - $2,970,000 Cost of goods sold - Beginning inventory - $52,800 Raw materials used in production - $608,000 Direct labor - $580,000 Manufacturing overhead applied - $647,500 (41,000 direct labor-hours $15.75 per direct labor-hour) Total cost of goods sold - $1,808,300Selling and administrative expenses - $376,000
Operating income is given as $2,970,000 - $1,808,300 - $376,000 = $785,700
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Occupational hygiene focuses specifically on three types of exposures. Explain any Two of these
Answers
Occupational hygiene focuses specifically on three types of exposures are:
chemical physical biologicalWhat is Occupational hygiene?Occupational hygiene can be described as the process that is been used in the work placer so that it can focus on the monitoring as well as preservation of the people of the workplace from any hazards.
chemical exposure can be described as one that focus on any hazards that can come from the use of toxic substance in the workplace. physical exposure can be described as the one tat focus on any hazards as a result of any physical injury in the workplace.
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Sofia makes $120 a day as a bank clerk. She takes two days off work without pay to fly to another
city to attend the concert of her favorite band. The cost of transportation and lodging for the trip is
$300. The cost of the concert ticket is $80. The opportunity cost (not total cost) of Sofia's decision
to attend the concert is
$240.
$620.
$380.
$300.
Answers
Respuesta:La respuesta es 380
Explanation: Porque,en el problema nos plantea ¿Cuánto gasta si viaja más la entrada? Pero somos dice,no pongas el total gastado,se refiere a que no sumemos los días no pagados
Además que no nos dice si ya le pagaron entonces no tiene un ahorro.
Explain in two ways how your community can support the 16days of activism
Answers
Hosting events and creating social media campaigns are just two ways that your community can support the 16 days of activism campaign. By coming together and taking action, we can create a safer.
The 16 days of activism is a global campaign that aims to raise awareness about gender-based violence and empower individuals to take action against it.
Hosting Events: One way to support the 16 days of activism is by hosting events in your community. These events can range from panel discussions, workshops, film screenings, and rallies.
By hosting these events, you can bring together members of your community to discuss the issue of gender-based violence, share their experiences, and brainstorm ways to address it. Additionally, hosting events can help to raise awareness about the campaign and encourage more people to get involved.
Social Media Campaigns: Another way to support the 16 days of activism is by creating social media campaigns. Social media has become a powerful tool for advocacy, and you can use it to raise awareness about gender-based violence and the 16 days of activism campaign.
You can create posts that highlight the importance of the campaign, share stories of survivors of gender-based violence, and encourage others to take action. By creating social media campaigns, you can reach a wider audience and inspire more people to get involved in the fight against gender-based violence.
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On January 1, 2023, the Tamarisk Company budget committee reached agreement on the following data for the six months ending June 30, 2023:
1. Sales units: First quarter 4,900; second quarter 6,000; third quarter 7,300 2. Ending raw materials inventory: 40% of the next quarter's production requirements 3. Ending finished goods inventory: 25% of the next quarter's expected sales units 4. Third-quarter production: 7,500 units The ending raw materials and finished goods inventories at December 31, 2022, had the same percentages for production and sales that are budgeted for 2022. 3 kilograms of raw materials are needed to make each unit of finished goods. Raw materials purchased are expected to cost $4 per kilogram.
Question: Prepare a direct materials budget by quarters for the six-month period ended June 30, 2023.
Answers
The final raw material and finished goods inventories at the end of 2020 had the same production and sales percentages as those planned for 2020.
Each kilogramme of finished goods requires 3 kilogrammes of raw materials to manufacture. The estimated cost of raw materials is $4 per kilogramme.
Make a production budget for the six-month period ending June 30, 2021, broken down into quarters.
Sales units: 4,900 in the first quarter, 6,000 in the second, and 7,300 in the third quarter. Ending raw materials inventory: 40% of the following quarter's sales units. The following information for the six months ending June 30, 2023, was agreed upon by the Tamarisk Company budget committee on January 1, 2023: 1. Units of sales First . The Tamarisk Company budget committee agreed on the following on January 1, 2023.
information for the six months ended June 30, 2023:
First quarter: Starting inventory = 5,100 multiplied by 25%
Initial stock = 5,100 * 0.25
Starting stock is $1,275.
Desired final stock = 6,100
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When asked to provide an estimate of a basketball court, Simon looked from one end of the field to the other, licked a finger and held it in the air, squinted into the sun and said $10,000, give or take 30%. The technique employed for cost estimation is:
Answers
The technique employed for cost estimation for the given case Simon is ballpark estimate.
What is the ballpark estimate?
A ballpark estimate is a rough estimate that is not an exact figure. This estimate is based on the level of information and confidence that the projected value is within a fair price range. This strategy is also known as rough order of magnitude.
In the given case, the Simon has provided an estimate of $10000 for the irrigation system, which might be considered a rough estimate. Therefore, it is called as the ballpark estimate.
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Suppose that stockbrokers have projected that Jamestown Savings will pay a dividend of $2.50 per share on its common stock at the end of the year; a dividend of $3.25 per share is expected for the next year, and $4.00 per share in the following 2 years. The risk-adjusted cost of capital for banks in Jamestown's risk class is 15%. If an investor holding Jamestown's stock plans to hold that stock for only four years and hopes to sell it at a price of $50 per share, what should the value of the bank's stock be in today's market
Answers
Answer:
... Jamestown Savings will pay a dividend of $2.50 per share on its common.... ... per share on its common stock at the end of the year; a dividend of $3.25 per share is expected for the next year, and $4.00 per share in the following two years. The risk-adjusted cost of capital for banks in Jamestown's risk class is 15 percent.
Explanation:
Ethics Student Activity Packet
In this lesson, you will learn to:
- Define what ethics is
- Explore some of the ethical dilemmas our society faces, such as those posed by self-driving cars
- Analyze a number of ethical dilemmas and recommend how the people in these situations should proceed
NOTE: Vocabulary for this unit can be found in the NGPF Personal Finance Dictionary
RESOURCES
Discussion Prompts
Write your responses to the questions. Then, share what you wrote with your classmates or a partner.
QUESTIONS
1. How do you know if a behavior or action is right or wrong?
Answers
A behavior or action is right or wrong due to the fact that it is a specific kind of action, that tends to fits in with some principles or rules, and can also say the behavior is right or wrong due to the fact that it brings about good or negative consequences.
How do we know good and bad behavior?We must first comprehend what we mean when we speak about right and wrong in order to taken in how to acquire moral understanding.
Therefore, one can make use of Conscience-Based Action: Ethical Knowledge. It is seen as a more prevalent viewpoint that exists that is not too dissimilar from that. It is the notion that by paying attention to our conscience, we can determine what is morally right and wrong. What determines whether anything is right or wrong is that still, small voice within of us.
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These are goals that you will achieve over a longer period of time, anywhere from one to twenty years. These are often our most meaningful and important goals. Short-term goals
Long-term goals
Intermediate goals
Specific goals
Answers
Explanation: The question states that “longer period of time, anywhere from 1 to 20 years”. This would clearly states that this wouldn't be intermediate or specific goals.
Hope this helps :)
Which of the following will help you have a good credit score?
OA.
Opening a lot of credit accounts.
B.
Keeping your balance at the maximum available amount of credit.
O C.
Paying off your debt as quickly as possible.
D.
All of the above
Answers
Megan is concerned about the performance of one of her teammates on a project. Which of the following is an example of effective constructive criticism?
A. You took too long to complete the task. Now we're way behind schedule!
B. I don't understand what took you so long to complete the task. Was it too difficult for you?
C. Your delay in completing the task makes the rest of the team look bad.
D. I am concerned that took three days to complete a task that was only scheduled to take one day. Let's brainstorm ways to make up the time.
Answers
Answer:
Explanation:
I think it is d
It is the only non degrading answer
Answer:
D. I am concerned that took three days to complete a task that was only scheduled to take one day. Let's brainstorm ways to make up the time.
Explanation:
A company issues bonds with a $100,000 par value, an 8% annual contract rate, semiannual interest payments, and a five year life. The bonds sold for $107,850. The entry to record the issuance of the bonds will include
Answers
Answer:
a. A credit to Premium on Bond Payable $7,850
Multiple-choices
a. A credit to Premium on Bonds Payable of $7,850.
b. A debit to Discount on Bonds Payable of $7,850
c. A credit to Cash of $100.000.
d. A credit to Bonds Payable of $107850
Explanation:
Bonds issued at a premium mean a customer pays a higher price than the face value. In this case, the premium amount is the difference between $107,850 and $100,000. When bonds are issued at a premium, the premium amount is debited to a premium bond account.
ECONOMICS
Data collected from the economy of Cardtown reveals that a 16% increase in income leads to the following changes:
• A 12% increase in the quantity of flops demanded
• A 14% decrease in the quantity of clubs demanded
• A 28% increase in the quantity of houses demanded
Compute the income elasticity of demand for each good and use the dropdown menus to complete the first column in the following table. Then, based on its income elasticity, indicate whether each good is a normal good or an inferior good. (Hint: Be careful to keep track of the direction of change. The sign of the income elasticity of demand can be positive or negative, and the sign confers important information.)
Answers
The demand elasticity is recognise the value which measures the change in the quantity requested whenever the income changes inside a given percentage. Its formula is em = change in percent in M by Q/percent, and the further calculation can be defined as follows:
\(\to em (flops) = \frac{+12\% }{+16\%} = +0.75\) Because em is +, flops are a regular good.
\(\to em (clubs) = \frac{-14\%}{+16\%} = -0.875\ \ or \ -0.88\) Because em is -, clubs are good less.
\(\to em (aces) = \frac{+28\%}{+16\%} = +1.75\) Aces are a normal good since em is +.
The elasticity of luxury goods exceeds that and that's why ACES are luxury goods.
Therefore, the final answer is "Hence".
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what does a buisness plan mean
Answers
Answer:
Sometimes, a new business plan is created for an established business that has decided to move in a new direction. A business plan is a written document describing a company's core business activities, objectives, and how it plans to achieve its goals. Startup companies use business plans to get off the ground and attract outside investors.
Explanation:
Answer:
buisness plan means
Explanation:
a document setting out a business's future objectives and strategies for achieving them.
Decide whether the following statement makes sense (or is clearly true) or does not make sense (or is clearly false). Explain your reasoning. Brandon discovered that his daily routine of buying a slice of pizza and a soda at lunch was costing him more than $1900 per year.
Answers
Answer:
This statement makes sense since eating pizza and a soda on a daily basis means that you purchased at least 365 slice of pizza and 365 sodas. If we divide $1,900 by 365 = $5.21 per day spent in pizza and soda. That is a completely plausible amount of money if you consider how much a slice of pizza or a soda costs.
Even though pizza prices are not the same around the country, it is not hard to find a pizza place that sells one slice plus a soda for something between $5 and $6.
a) You are the Lead Supervisor at a merchandise packaging company. You have
received feedback that 20% of outgoing packages in the last six months had missing
components or were broken. Write a memo to your employees about this concern. I
Answers
Carr Company produces a single product. During the past year, Carr manufactured 32,210 units and sold 26,700 units. Production costs for the year were as follows: Direct materials $241,575 Direct labor $157,829 Variable manufacturing overhead $251,238 Fixed manufacturing overhead $418,730 Sales were $1,241,550 for the year, variable selling and administrative expenses were $138,840, and fixed selling and administrative expenses were $199,702. There was no beginning inventory. Assume that direct labor is a variable cost. Under absorption costing, the ending inventory for the year would be valued at: (Do not round intermediate calculations.) $182,932 $252,932 $210,432 $244,432
Answers
Answer:
Ending inventory= $189,932
Explanation:
Giving the following information:
Carr manufactured 32,210 units and sold 26,700 units.
Direct materials $241,575
Direct labor $157,829
Variable manufacturing overhead $251,238
Fixed manufacturing overhead $418,730
Total cost= $1,069,372
The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
First, we need to determine the unitary production cost:
Unitary production cost= 1,069,372/32,210= $33.2
Units in ending inventory= 32,210 - 26,700= 5,510
Now, the value of ending inventory:
Ending inventory= 33.2*5,510= $189,932
Snavely, Inc., manufactures and sells two products: Product E1 and Product A7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product E1 600 8.0 4,800 Product A7 300 4.0 1,200 Total direct labor-hours 6,000 The direct labor rate is $24.90 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit Product E1 $206.00 Product A7 $225.00 The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product E1 Product A7 Total Labor-related DLHs $ 109,600 4,800 1,200 6,000 Machine setups setups 51,690 700 300 1,000 Order size MHs 808,470 2,800 3,500 6,300 $ 969,760 The total overhead applied to Product A7 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
Answers
The total overhead applied to Product A7 under activity-based costing is closest to $482,086.
The total overhead applied is calculated with the following data from the question: Activity Estimated Expected ActivityActivity Cost Pools Measures Overhead Product E1 Product A7 Total
Labor-related DLHs $ 109,600 4,800 1,200 6,000
Machine setups setups 51,690 700 300 1,000
Order size MHs 808,470 2,800 3,500 6,300
Total $ 969,760
Overhead Allocation using activity-based costing method:Total Costs Product E1 Product A7
Labor-related DLHs $ 109,600 $87,680 (80%) $21,920 (20%)
Machine setups setups 51,690 36,183 (70%) 15,507 (30%)
Order size MHs 808,470 363,811 (45%) 444,659 (55%)
Total $ 969,760
Total overhead allocated to products $487,674 $482,086
Thus, the calculation of the total overhead applied to Product A7 under the activity-based costing method is determined by the volume of activities that Product A7 consumed under each activity cost pool, as indicated by the percentages.
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performance.
Below is the information relating to production and sale of the
threeproducts for the year ending 31 December 2019:
Particulars
Krollers
Bags
Output sold (000)
Unit sales and costs
Selling price
Direct materials
Direct labour
Fixed production costs
Selling and distribution
Costs
Layers
Bags
1,200
Shs
1,050
Shs
Broilers
Bags
1,300
Shs
200,000 185,000 180,000
90,000 100,000
60,000 50,000
28,000 24,000
7,000 7,000
80,000
45,000
30,000
7,000
Administrative costs
5,000 5,000
6,000
Management accountant further advised that shutting down the
production line of feed concentrate for Kroilers will save 20% of the
total annual fixed costs.
Required:
Advise SIL's management, on whether the production line of
feed concentrate for Kroilers should be shut down.
(9 marks)
Answers
Based on the information provided, I recommend that SIL does not shut down the production line of feed concentrate for Kroilers
How to explain the informationThe decision to shut down a production line is a complex one that should be made on a case-by-case basis.
In the case of SIL, the management accountant has advised that shutting down the production line of feed concentrate for Kroilers will save 20% of the total annual fixed costs. This would result in a net profit increase of Shs. 2,800,000 (20% of 28,000,000). However, there are a number of other factors that need to be considered.
Based on the information provided, I recommend that SIL does not shut down the production line of feed concentrate for Kroilers. The financial benefits of the closure would be offset by the costs of job losses, lost sales, and damage to the company's reputation. The company should explore other options, such as finding a way to reduce costs without closing the production line.
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Exercise 12.7 Cash dividends, stock dividends, and share splits L.O. 4
Answers
Answer:
Exercise 12.7 Cash dividends, stock dividends, and share splits L.O. 4
A project screening criterion that allows the company to compare long-term versus short-term projects, projects with different technologies, and projects with different commercial objectives is:
A) Flexibility.
B) Ease of use.
C) Capability.
D) Realistic.
Answer: C)
Answers
Projects with different technologies, and projects with different commercial objectives is capability. In order to ascertain if the proposed investment project necessitates/
First environmental examination or an environmental impact assessment or not, project screening refers to the research and analysis of data contained in an investment project (document). Exposure to business risk, return on investment, and legal requirements are the most crucial factors. The outcome of project scoring is not the only factor in project capability; resources that can be used to complete projects also play a significant role. Early in the development phase, a screening procedure coordinated with clients.
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Assessment
Which of the following is an example of investing in yourself?
A. Taking the time to learn how to create a budget.
B. Investing your money in the stock market.
C. Planning out your financial goals.
D. Signing up for an online class.
10/10
Answers
Answer:
A
Explanation:
The reason is because you can learn new techniques on money saving and budgeting.
Determine the amount of tax liability in each of the following instances:
a. A married couple filing jointly with taxable income of $32,991.
b. A married couple filing jointly with taxable income of $192,257.
c. A married couple filing separately, one spouse with taxable income of $43,885 and the other with $56,218.
d. A single person with taxable income of $79,436. A single person with taxable income of $297,784.
e. A head of household with taxable income of $96,592. A qualifying widow with taxable income of $14,019.
f. A married couple filing jointly with taxable income of $11,216.
Answers
The determination of the tax liability in each of the following instances is as follows:
Taxable Filing Tax Tax
Income Status Rate Liability
a. $32,991 Joint 12% $3,958.92
b. $192,257 Joint 24% $46,141.68
c. $43,884 Separate 12% $5,266.08
c. $56,218 Separate 12% $6,746.16
d. $79,436 Single 22% $17,475.92
d. $297,784 Single 35% $104,224.40
e. $96,592 Household 24% $23,182.08
e. $14,019 Widow 12% $1,682.28
f. $11,216 Joint 10% $1,121.60
What is a tax liability?A tax liability is the payment that an individual or couple must pay within the tax year to the government. Generally, tax liabilities arise when the individual earns income or sells an investment. Examples of tax liabilities are income taxes or capital gains taxes.
Thus, the tax liability of each instance depends on the tax rate and the filing status of the individual or couple.
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