Net income for Ros-Belle partnership for 2021 was $125,000. Rosalie and Belle agreed to distribute partnership net income according to the following plan in order: - Interest on average capital balances 7%, 7% - Bonus on net income before the bonus but after interest on average capital balance 12% - Salaries Rosalie $40,000, Belle $50,000 - Residual (if positive) Rosalie 60%, Belle 40% \
- Residual (if negative) Rosalie 50%, Belle 50% Additional Information for 2021 follows: 1. Rosalie began the year with a capital balance of $75,000. 2. Belle began the year with a capital balance of $100,000. 3. On March 1, Rosalie invested an additional $25,000 into the partnership. 4. On October 1, Belle invested an additional $20,000 into the partnership. 5. Throughout 2021, each partner withdrew $200 per week in anticipation of partnership net income. The partners agreed that these withdrawals are not to be included in the computation of average capital balances for purposes of income distributions. > Required:
a. Prepare a schedule that reveals the computations of each partner's weighted-average capital. b. Prepare a schedule that discloses the distribution of partnership net income for 2021. c. Prepare the statement of partners' capital at December 31, 2021
Answers
The Ending Capital Balance of Ros-Belle is $134,412
a. Schedule of Partner's Weighted-Average Capital
Partner | Beginning Capital Balance | Additional Investment | Weighted Average Capital
Rosalie | $75,000 | $25,000 | $76,250
Belle | $100,000 | $20,000 | $96,000
b. Schedule of Distribution of Partnership Net Income
Interest on Average Capital Balance | Rosalie | Belle 7% x $76,250 | $5,337.50 | $6,720
Bonus on Net Income Before Bonus | Rosalie | Belle 12% x $125,000 | $15,000 | $15,000
Salaries | Rosalie | Belle $40,000 | $40,000 | $50,000
Residual (if positive) | Rosalie | Belle $25,000 x 60% | $15,000 | $10,000
Total Distribution | Rosalie | Belle $75,337.50 | $76,720
c.Rosalie Partner's Capital
Beginning Capital Balance: $75,000
Add: Investment on 3/1: $25,000
Less: Distributions: $8,400
Adjusted Capital Balance: $91,600
Interest on Average Capital Balance: $6,412
Bonus on Net Income Before Bonus: $15,000
Ending Capital Balance: $113,012
Belle Partner's Capital
Beginning Capital Balance: $100,000
Add: Investment on 10/1: $20,000
Less: Distributions: $8,400
Adjusted Capital Balance: $111,600
Interest on Average Capital Balance: $7,812
Bonus on Net Income Before Bonus: $15,000
Ending Capital Balance: $134,412
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Related Questions
Your grandparents would like to share their fortune with you. They offer you money under one of the following scenarios: 1. $7,250 per year at the end of each of the next eight years. 2. $49,650 (lump sum) now 3. $98,650 (lump sum) eight years from now Calculate the present value of each scenario using an 8% discount rate. Which scenario yields the highest present value
Answers
Answer:
$98,650 (lump sum) eight years from now yields the highest present value.
Explanation:
This can be determined as follows:
1. Calculation of the present value of $7,250 per year at the end of each of the next eight years.
This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
PV = present value of $7,250 per year at the end of each of the next eight years = ?
P = Annual payment = $7,250
r = discount rate = 8% or 0.08
n = number of years = 8
Substitute the values into equation (1), we have:
PV =$7,250 * ((1 - (1 / (1 + 0.08))^8) / 0.08)
PV = $41,663.13
2. Calculation of the present value of $49,650 (lump sum) now
Since now is the present time, the present value of $49,650 (lump sum) now is still equal to $49,650.
3. Calculation of the present value of $98,650 (lump sum) eight years from now
This can be calculated using the present value formula as follows:
PV = FV / (1 + r)^n ................... (2)
Where:
PV = present value of $98,650 (lump sum) eight years from now = ?
FV = future value or (lump sum) eight years from now = $98,650
r = discount rate = 8% or 0.08
n = number of years = 8
Substitute the values into equation (2), we have:
PV = $98,650 / (1 + 0.08)^8
PV = $53,297.53
Comparison of the present values
1. Present value of $7,250 per year at the end of each of the next eight years = $41,663.13
2. Present value of $49,650 (lump sum) now = $49,650
3. Present value of $98,650 (lump sum) eight years from now = $53,297.53
As can be seen from the above, $98,650 (lump sum) eight years from now yields the highest present value.
You are the Chief Operating Officer (COO) of a mid-size manufacturing company. The company is seeking a new Chief Executive Officer (CEO) to fill the pending vacancy in the next few months and you are seeking this position. The process requires that you submit a Letter of Interest to the Board of Directors for the CEO position that demonstrates your qualifications based upon your experience and command of the various disciplines required to be a successful CEO. You believe that you are extremely qualified for this position that requires your ability to lead the organization through the Strategic Management process. This Letter of Interest is not the typical short document taught in business school, but a comprehensive document that delivers a broad understanding of your qualifications that are relevant for the position that you are seeking. This is the one opportunity to demonstrate to the reader that you know the content, have critical thinking skills, can utilize the problem-solving/decision-making process, and are able to communicate what you want to say. You have two (2) hours to accomplish this goal.
Your confidence level is supported by the fact that you have spent your entire career with the company in various departments that includes manufacturing, marketing, finance, managerial accounting and human resources as part of the company’s management development program. This exposure to the core operations of the company has provided you with a vision of what the CEO position is and what is needed to provide the company with a competitive advantage in the marketplace.
Requirements for the Letter of Interest:
1. You must assume the role of the COO.
2. You must demonstrate your command of the appropriate concepts and terms to support your letter of interest.
3. You must demonstrate critical thinking skills.
4. You must demonstrate problem solving/decision making skills.
5. You must demonstrate your ability to communicate your thoughts that justifies consideration for the position.
Answers
Note that the letter requested is a formal letter. Examples of formal letters include:
Letter of EmploymentLetter of EnquiryLetter of ComplaintPromotion Letter etc. The sample requested is given as follows.What would a Letter of Application for the Position of CEO look like?Dear Board of Directors,
As the Chief Operating Officer of our great and progressive manufacturing company, I am writing to express my interest in the Chief Executive Officer position that will be vacant in the coming months.
I believe that my extensive experience and background within the company, as well as my understanding of the various disciplines required to be a successful CEO, make me an excellent candidate for this role.
I have gained diverse experience in various departments and functions within my company, giving me a comprehensive understanding of how to drive the company's competitive advantage.
In addition to my practical experience, I have a strong command of the concepts and terms related to strategic management and the ability to think critically and make sound decisions. I am confident in my ability to lead our company through the strategic management process and guide it toward long-term success.
I am excited about the opportunity to take on the role of CEO and use my skills and knowledge to drive the growth and success of our organization. I hope that you will consider my letter of interest and give me a chance to demonstrate my qualifications for this position further.
Sincerely,
[Your Name]
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Multiple Choice:
- 10 weeks
- 15 weeks
- 13 weeks
- 7 weeks
Answers
The project completion time is when all the activities are performed and the whole project is ready that is 15 Weeks.
What is a project?A project is an activity or a set of activity that takes place, the completion of those activities will mark the project as complete.
The project time that will be required is 15 Weeks, in the diagram provided the activity A1 needs to be performed first and after completion of activity A1, A2 needs to be done and only then A3 can be performed. The whole project will be completed at 15 Weeks (5+8+2). While if activity A2 is left the project can be completed in 7 weeks (5+2).
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Think of a good or service you, your family, or your school wants to purchas. Write a paragraph analyzing the costs and benefits of the investment. In your essay, identify how the item will be used, its cost, what resources are available to spend on it, what sacrifices will have to be made to purchase it, the risks of the purchase, and the potential benefits
Answers
Answer: Currently, our education system often focuses on a narrow sliver of children’s cognitive development with an emphasis on transmitting content knowledge, often to be memorized and repeated in the same form it was received. Lessons in math, science, and reading—and tests in those skills—dominate the curriculum.
While those subjects are fundamental, learning involves far more than merely acquiring inert knowledge in algebra or chemistry. Such a narrow focus gives short shrift to the ways that children need to grow and learn in their relationships, identity, emotional understanding, and overall well-being. After all, children are multi-dimensional “whole” beings whose development is complex and rich.
Explanation:
Task: Sales and Marketing Activities of a Company
Select a publicly held company that is well-known for marketing its products. Search its
website and procure a few years' sales reports and annual reports, including sales and
revenue graphs. You could choose any Fast Moving Consumer Goods (FMCG), mobile, or
automobile company-or a company dealing in anything else that interests you. Analyze the
company's sales data and revenue figures, and write an essay summarizing the company's
performance over the last few years.
Type your response here:
Answers
After analyzing the company's sales data and revenue figures, it is found out that it has good sales in the Fast Moving Consumer Goods (FMCG).
What are Fast Moving Consumer Goods?
Products that sell quickly and at a low price are referred to as fast-moving consumer goods (FMCG), sometimes known as consumer packaged goods (CPG). Examples include non-durable household items including packaged food, drinks, toiletries, candy, cosmetics, over-the-counter medications, dry goods, and other consumables. Fast-moving consumer goods have a high inventory turnover in comparison to specialty items, which have smaller sales and greater carrying costs. Especially in hypermarkets, big box stores, and warehouse club stores, many retailers solely stock FMCGs. Fast moving goods are also stocked at small convenience stores, where they take up more of the limited shelf space. In rural locations, customers often buy things from adjacent towns and villages.
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Suppose you are a human resource professional at a company setting up work
teams for production and sales. Explain at least four legal requirements which need
to be embedded in your pay structure to support this new work arrangement.
Answers
If I were a human resource professional at a company setting up work teams for production and sales, the four legal requirements that need to be embedded in my pay structure to support this new work arrangement are:
The nation's minimum yearly salary.State minimum wage is paid.Minimal wage for the employees.A flat wage for the position.What will the legal requirements be about?A group incentive plan is a form of compensation that bases pay on the collective performance of a team and emphasizes cost-cutting, productivity growth, and achieving organizational objectives.
I supposedly work in human resources for a company that organizes work teams for sales and production and I would suggest the below point to encourage this new work arrangement:
Teams that are unable to function independently are provided group incentive plans. They are only able to function in teams, and the job itself necessitates it.Learn more about human resource professional from
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Wiki Wiki Company has determined that the variable overhead rate is $4.50 per direct labor hour in the Fabrication Department. The normal production capacity for the Fabrication Department is 10,000 hours for the month. Fixed costs are budgeted at $60,000 for the month.
Required:
a. Prepare a monthly factory overhead flexible budget for 9,000, 10,000, and 11,000 hours of production.
b. How much overhead would be applied to production if 9,000 hours were used in the department during the month?
Answers
Answer:
a. Monthly Factory Overhead Cost Budget Fabrication Department
Direct Labor Hours 9,000 10,000 11,000
Variable Factory Overhead $40,500 $45,000 $49,500
Cost at $4.50 per hour
Fixed Factory Overhead Costs $60,000 $60,000 $60,000
Total Factory Overheads $100,500 $105,000 $109,500
b. Normal Production = 10,000 Units
Total Factory Overheads = $105,000
Factory Overhead Cost per unit = $105,000 / 10,000 Units
Factory Overhead Cost per unit = $10.5 per unit
Factory Overhead Cost absorbed when 9,000 hours used in the department:
= 9,000 Hours * $10.5 per Unit
= $94,500
Domain and Range Digital Escape! puzzle 3
Answers
A function/graph/relation's domain and range are defined as follows:
Domain: a collection of input values.Range: a collection of output values.What are a function's domain and range?The domain of a function is the set that contains all of the function/relation's potential input values; hence, it is made up of x values.
The range of a function is the set that contains all of the function/relation's potential output values; hence, it is made up of y values.
Because the problem is incomplete, the notions of domain and range are given and then applied to derive the domain and range.
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Full Question:
Although part of your question is missing, you might be referring to this full question:
Please define the terms
Which elements are visible when a user opens a new PowerPoint presentation? Check all that apply.
notes pane
design elements
title text placeholder
subtitle text placeholder
all slides in the presentation
Answers
Answer:
The only element visible is the presentation itself. Explanation: All of the other options, such as presenter's assistance, is hidden away from the projector, presentation device, etc. You are the only one that can see the window that shows what slide is next, presenter's notes, etc.
Explanation:
Answer:
C. title text placeholder
D. subtitle text placeholder
Explanation:
hope this helps :)
Which typeof checking accoun t requiers a certian amount of money to be kept in itat all times in order to avoid fees at all times
Answers
The type of checking account that requires a certain amount of money to be kept in it at all times in order to avoid fees is called a "minimum balance" or "tiered balance" checking account.
What is the type of checking account requires a certain amount of money?This type of checking account requires the account holder to maintain a minimum balance in the account in order to avoid monthly maintenance fees or other types of fees. The exact amount required can vary depending on the financial institution, but it is typically a few hundred dollars.
If the account holder does not maintain the minimum balance, they may incur a monthly fee or other charges. However, if the account holder is able to maintain the minimum balance, they may receive other benefits such as free checks, free ATMs, or higher interest rates.
Therefore the type of account is minimum balance.
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Agatha was a licensed loan originator when the housing market slowdown left her with little work. She accepted a job outside the mortgage field over three years ago, and her license expired. Now, Agatha wants to apply for a license again. One of the requirements Agatha must meet in order to be re-licensed is:
Answers
Answer: Providing proof that she completed all of the continuing education requirements for the year she last held a license.
Explanation:
Based on the information given, since the license of Agatha has expired, one of the requirements that she must meet in order to be re-licensed is to provide proof that she completed all of the continuing education requirements for the year she last held a license.
It should be noted that providing proof that she still meets the qualifications to be a mortgage loan originator or information that relates to her previous license isn't required.
_Case Study_ -
*Factors for effective communication*
Nalisiwe is a community development facilitator. She wanted to help young people in her community by starting a support group. She asked a community leader to call a meeting for youth. The community leader called the meeting and asked youths to bring their identity documents to the meeting so that they may register for the project. Because the young people had been asked to bring their identity documents to the meeting, many youth came to the meeting, thinking that the meeting was about applying for a Job. Those who did not have identity documents did not attend the meeting. The youth were very frastrated when they heard that there were no Jobs on offer, and that the meeting was to discuss setting up a support group for youth.
Nalisiwe was frastrated because she felt that the community leader may have had other political intentions in asking the youth to bring their identity documents.
Questions:
1. What can you tell about the mental make - up of Nalisiwe?
2. What were the needs of the audience (the youth)?
3. What were the circumstantial Demands that influenced the communication?
4. How could Nalisiwe and the community leader have been clearer about the purpose of the meeting when they sent out the invitation to the youth?
5. The identity document became a distraction and a symbol for something different than what was intended. How could they have avoided this ambiguity?
6. How could Nalisiwe have worked towards a shared goal, despite the initial misunderstanding abou
Answers
1. Based on the given information, we can infer that Nalisiwe is a proactive and well-intentioned individual who is passionate about community development. She has a clear vision of helping young people in her community and is determined to start a support group for them. However, she may also be feeling frustrated and disappointed due to the misunderstanding that occurred during the meeting.
2. The needs of the audience (the youth) were initially misinterpreted due to the lack of clarity in the meeting invitation. They were looking for job opportunities and saw the meeting as a chance to apply for jobs. Their primary need was employment and the prospect of improving their livelihoods.
3. The circumstantial demands that influenced the communication include the community leader's involvement in organizing the meeting and the way the invitation was communicated. The request to bring identity documents created confusion and led the youth to believe that the meeting was about job applications.
4. To be clearer about the purpose of the meeting, Nalisiwe and the community leader could have clearly stated in the invitation that the meeting was for discussing the establishment of a support group for youth and not for job applications. They could have emphasized the importance of youth participation and highlighted the benefits and objectives of the support group.
5. To avoid the ambiguity surrounding the identity documents, Nalisiwe and the community leader could have explicitly stated that bringing identity documents was not a requirement for the meeting. Instead, they could have focused on conveying the purpose and benefits of the support group, addressing the specific needs and concerns of the youth, and highlighting opportunities for personal growth and community involvement.
6. Despite the initial misunderstanding, Nalisiwe could have worked towards a shared goal by actively engaging with the youth, listening to their concerns, and adapting the support group's objectives to address their needs. She could have facilitated open and transparent communication, clarified any misconceptions, and reassured the youth of the benefits and opportunities the support group could provide. Building trust and maintaining effective ongoing communication would be crucial in aligning everyone towards the shared goal of empowering and supporting the youth in the community.
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Classify the following adjusting entries as involving prepaid expenses, unearned revenues, accrued expenses, or accrued revenues.a. To record revenue earned that was previously received as cash in advance. b. To record wages expense incurred but not yet paid (not recorded.) c. To record revenue earned but not yer billed (not recorded.) d. To record expiration of prepaid insurance. e. To record annual depreciation expense.
Answers
a. To record income earned that was already received in cash ahead of modifying entries involving prepaid expenses, unearned income, accrued income, or accrued expenses.
What are accumulated costs?Companies must account for all previous expenses since they will eventually need to be reimbursed. Businesses can keep tabs on these accumulating costs in two ways: through accounts payable or accrued expenses. The basic accounting term that applies to all of these liabilities is accrual accounting.
Despite the fact that both are liabilities that businesses incur in the normal course of operations, they are fundamentally different from one another. Accrued expenses are expenses that build over time and must be paid. Accounts payable, on the other hand, are current liabilities that will be settled soon. We go into further information about each type of balance sheet item in this section.
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Hi can someone help!
The most direct wat for Johnathan to gain on the job experience and earn money while attending school is to apply for:
a. Private Loan
b. A work study program
c. Federal financial aid
d. Scholarships
Answers
Answer:
a work study program...........
An income statement focusing on product and period costs has been prepared using a(n) format, while a(n) format income statement makes a distinction between fixed and variable costs.
Answers
The income statement that focused on the product & period cost could be made using a traditional format while on the other hand the income statement should be made via contribution format for fixed & variable cost.
The following information should be considered:
The income statement contains product & period cost so it should be made by using the traditional format.And, if there is a distinction made between the fixed and variable cost so for this contribution margin format should be used.Therefore we can conclude that The income statement that focused on the product & period cost could be made using a traditional format while on the other hand the income statement should be made via contribution format for fixed & variable cost.
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International Gems sells fine jewelry and has implemented activity-based costing. Costs in the shipping department have been divided into three cost pools. The first cost pool contains costs that are related to packaging and shipping. International has determined that the number of boxes shipped is an appropriate cost driver for these costs. The second cost pool is made up of costs related to the final inspection of each item before it is shipped and the cost driver for this pool is the number of individual items that are inspected. The final cost pool is used for general operations of the department and the cost driver is the number of orders. Information about the activities is summarized below:
Cost Pool Estimated Total Costs Cost Driver Estimated Annual Activity
Packaging and shipping 67,200 Number of boxes shipped 16,000 boxes
Final inspection 200,000 Number of individual items inspected 100,000 items
General operations 85,000 Number of orders 10,000 orders
During the period, the Southern sales office generated 240 orders for a total of 3,560 items, which were shipped in 1,200 boxes. What amount of shipping department costs should be allocated to these sales?
Answers
Answer:67,200
Explanation:
The shipping department cost will be $14200.
What is the cost?The term cost can be termed as the price of buying something or the amount that a company spends on making a product. It is the amount that is charged on something for the product. The incurred cost can have many variables and non-variable costs like purchasing cost, labor, wages, rent, maintenance, raw material, processing cost, packaging, and transportation.
In this Question, the International gems sell their product slots. The shipping department has been divided into three cost pools. The total shipping charges will be the addition of packaging and shipping, Final Inspection, and General operations.
So, the total shipping cost =5040 + 7120 + 2040 = 14200
Thus, the costs that should be allocated to the sales with respect to the shipping charges will be $14,200.
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Question 2. (6)
Briefly explain why Investors, Competitors and Suppliers take interest in
accounting information related to a business. (Please include examples)
Answers
Answer:
They like googIe
Explanation:
A student is setting up an experiment. The student has twenty identical young plants and will try to answer this question: How does the amount of water given to these plants each day affect how tall the plant will grow? Identify one condition, other than identical young plants, that should be held constant during the experiment.
Answers
What is the definition of gross income?
Answers
Gross income refers to the total income earned by an individual, business, or entity before any deductions or expenses are subtracted.
Gross income is typically calculated on an annual basis, representing the total income earned over a specific period, usually a fiscal year. It serves as a starting point for determining taxable income, which is the amount on which taxes are assessed.
It is important to note that gross income does not account for any deductions or expenses, such as taxes, operating costs, depreciation, or other business expenses. These deductions are subtracted from the gross income to arrive at the net income or taxable income, which is the actual amount on which taxes are levied.
For individuals, gross income includes wages or salaries earned from employment, income from self-employment or freelancing, rental income, investment income, and other sources. It is reported on the individual's tax return and is used to determine their tax liability.
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The refusal of the US Senate to ratify the ITO's charter "doomed" the International Trade Organization (ITO).
True or False
Answers
True or False: Improving manufacturing plant output and improving inventory turns are strategic key performance
indicators (KPIs).
True
False
Answers
This claim is untrue. Key performance indicators (KPIs) are a group of quantitative metrics used to assess the overall long-term performance of an organization.
What does a manufacturing KPI mean?A manufacturing KPI or metric is a clearly defined measurement used to track, evaluate, and improve production processes in terms of quantity, quality, and other cost factors.
What purposes do KPIs serve?Key performance indicator, or KPI, is a quantitative measurement of performance over time for a certain goal. KPIs offer goals for teams to strive towards, benchmarks to evaluate progress, and insights that aid individuals throughout the organization in making better decisions.
Which five key performance indicators are there?The five key performance metrics are:
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The owner of a large machine shop has just finished its financial analysis from the prior fiscal year. Following an excerpt from the final report:
Net revenue $375000
Cost of goods sold 322000
Value of production materials on hand 42500
Value of work-in-progress inventory 37000
Value of finished goods on hand 12500
a. Compute the inventory turnover ratio (ITR). (Round your answer to 1 decimal place.)
Inventory turnover ratio ......... per year
b. Compute the weeks of supply (WS). (Do not round intermediate calculations. Round to 1 decimal place.)
Weeks of supply ........
Answers
Answer:
a. Inventory turnover ratio = Cost of goods sold / Average Aggregate Inventory Value
Inventory turnover ratio = $322,000 / $42,500 + $37,000 + $12,500
Inventory turnover ratio = $322,000 / $92,000
Inventory turnover ratio = 3.5
Therefore, the inventory turnover ratio is 3.5
b. Weeks of supply = Average Aggregate Inventory Value / Cost of Goods Sold * 52 (weeks)
Weeks of supply = $42,500 + $37,000 + $12,500 / $322,000 * 52
Weeks of supply = $92,000 / $322,000 * 52 weeks
Weeks of supply = 14.85 weeks
Therefore, the weeks of supply is 14.85 weeks
Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below:
Sales $ 750,000
Variable expenses $ 346,000
Fixed manufacturing expenses $ 258,000
Fixed selling and administrative expenses $ 206,000
All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $200,000 of the fixed manufacturing expenses and $115,000 of the fixed selling and administrative expenses are avoidable if product D14E is discontinued.
Required:
a. According to the company's accounting system, what is the net operating income earned by product D14E? (Net losses should be indicated by a minus sign.)
b. What would be the increase (decrease) to income of dropping product D14E? Should the product be dropped?
Answers
Answer: B.
Explanation:
The Bird Carver has 1,800 bonds outstanding with a $1,000 face value, an 8 percent coupon, 10 years to maturity, annual interest payments, and sells at 95 percent of face value. The firm also has 50,000 shares of common stock outstanding at a market price of $56 a share and a beta of 0.87. The risk-free rate is 4 percent, the market return is 12 percent and the tax rate is 35 percent. What is WACC?
Answers
The Bird Carver's Weighted Average Cost of Capital (WACC) is 8.87%.
We must ascertain the costs of debt and equity in order to compute the weighted average cost of capital (WACC).
Cost of Debt: The yield to maturity (YTM) of the bonds is used to determine the cost of debt. We can determine the YTM using financial formulae or tools if the bonds have a face value of $1,000, an 8 percent coupon, sell for 95% of face value, and have 10 years before maturity. Let's say that the YTM is 8.5%.
Cost of Equity: The Capital Asset Pricing Model (CAPM) is used to calculate the cost of equity. We may determine the cost of equity using the following equation: Cost of Equity = Risk-Free Rate + Beta * (Market Return - Risk-Free Rate) Given the market return of 12 percent, the risk-free rate of 4 percent, and a beta of 0.87 for the common stock. Assume that the cost of equity is 9.24%.
WACC, or weighted average cost of capital
The weighted average cost of capital, or WACC, is calculated by averaging the costs of debt and equity according to the capital structure of the organisation. Assume that the firm's debt to equity ratio is 1:1. Thus, the WACC can be determined using the formula below:
WACC = (Debt Proportion * Cost of Debt) + (Equity Proportion * Cost of Equity)
= (0.5 * 8.5%) + (0.5 * 9.24%)
= 4.25% + 4.62%
= 8.87%
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To determine the net cash provided (used) by operating activities, it is necessary to analyze Group of answer choices the current year's income statement. a comparative balance sheet. additional information. all of these.
Answers
Answer:
All of these.
Explanation:
All of these are the correct answer because to determine the net cash from the operating activities, there is a requirement of the current year's income statement, additional information such as depreciation and amortization and a comparative balance sheet. In order to get cash from operating activities, the changes and non-cash capital, other non-cash adjustments, depreciation is added to the net income.
Wholemark is an Internet order business that sells one popular New Year greeting card once a year. The cost of the paper on which the card is printed is $0.40 per card, and the cost of printing is $0.10 per card. The company receives $3.75 per card sold. Since the cards have the current year printed on them, unsold cards have no salvage value. Their customers are from the four areas: Los Angeles, Santa Monica, Hollywood, and Pasadena. Based on past data, the number of customers from each of the four regions is normally distributed with mean 2,300 and standard deviation 200. (Assume these four are independent.)
What is the optimal production quantity for the card?
Answers
Answer:
≈ 9644 quantity of card
Explanation:
given data:
n = 4 regions/areas
mean demand = 2300
standard deviation = 200
cost of card (c) = $0.5
selling price (p) = $3.75
salvage value of card ( v ) = $ 0
The optimal production quantity for the card can be calculated using this formula below
= u + z (0.8667 ) * б
= 9200 + 1.110926 * 400
≈ 9644 quantity of card
First we have to find u
u = n * mean demand
= 4 * 2300 = 9200
next we find the value of Z
Z = ( \(\frac{p-c}{p-v}\) )
= ( 3.75 - 0.5 ) / 3.75 = 0.8667
Z( 0.8667 ) = 1.110926 ( using excel formula : NORMSINV (0.8667 )
next we find б
б = 200\(\sqrt{n}\) = 400
if the pictures are not the same size when they are selected from a file
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Discuss the principles of management.
Please help
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The principles of management are scientific principles that enable managers to make organizational decisions, accomplish tasks, and achieve organizational goals.
What are the principles of management?The principles of management enunciated by Henri Fayol enable managers to become efficient and effective include:
Division of WorkDisciplineUnity of DirectionUnity of CommandRemunerationScalar ChainOrderEquityInitiativeEsprit de CorpsThe Degree of CentralizationAuthority and ResponsibilitySubordination of Individual InterestStability of Tenure of Personnel.These principles of management provide guidance to managers in their decision-making and management activities.
Thus, the principles of management enable managers to make organizational decisions, accomplish tasks, and achieve organizational goals.
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If a firm produces nothing, which of the following costs will be zero?
a. total cost
b. fixed cost
c. opportunity cost
d. variable cost
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D is the answer
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The cost that will be zero if a firm produces nothing is variable cost because it is a cost that changes with level of output.
What is variable cost?Variable cost refers to the cost that vary with the level of output. This means that at every activity leve, the variable cost changes with it.
The above means that a constant amount per unit produced is the variable cost of manufacturing which implies that once the output is zero, the variable cost will be zero as well.
Hence, the cost that will be zero if a firm produces nothing is variable cost.
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Adams Furniture receives a special order for 10 sofas for a special price of $6,400. The direct materials and direct labor for each sofa are $160. In addition, supervision and other fixed overhead costs average $180 per sofa.
Required:
a1. What is the impact on operating income from accepting the special order?
a2. Based solely on a short-term financial analysis, should Adams accept the special order?
b1. If Adams is currently operating at full capacity, what would be the opportunity cost per unit for lost sales to regular customers if the special sales order is accepted and the selling price per unit on regular sales equals $750?
b2. Based solely on a short-term financial analysis, should Adams accept the special order if it is currently operating at full capacity?
Answers
The operating income from special order is $1400 and the opportunity cost per unit for lost sales to regular customers is $430.
What is the impact of the special order on the operating income?a1. To determine the impact on operating income from accepting the special order, we need to calculate the total cost per sofa and compare it to the special price of $6,400 for 10 sofas.
Total cost per sofa = Direct materials + Direct labor + Fixed overhead
Total cost per sofa = $160 + $160 + $180
Total cost per sofa = $500
Revenue from special order = $6,400
Operating income from special order = Revenue - Total cost
Operating income from special order = $6,400 - ($500 x 10)
Operating income from special order = $1,400
Therefore, the impact on operating income from accepting the special order is an increase of $1,400.
a2. Based solely on a short-term financial analysis, Adams should accept the special order since it will result in an increase in operating income.
b1. If Adams is currently operating at full capacity, accepting the special order will require the company to forgo regular sales to its customers. The opportunity cost per unit for lost sales to regular customers can be calculated as follows:
Opportunity cost per unit = Selling price per unit - Total variable cost per unit
Opportunity cost per unit = $750 - $320
Opportunity cost per unit = $430
Therefore, the opportunity cost per unit for lost sales to regular customers is $430.
b2. Based solely on a short-term financial analysis, whether Adams should accept the special order if it is currently operating at full capacity depends on whether the contribution margin from the special order is greater than the opportunity cost per unit for lost sales to regular customers.
Contribution margin per unit = Selling price per unit - Total variable cost per unit
Contribution margin per unit = $6,400 / 10 - $320
Contribution margin per unit = $640 - $320
Contribution margin per unit = $320
Since the contribution margin per unit of $320 is greater than the opportunity cost per unit for lost sales to regular customers of $430, Adams should accept the special order. However, it's worth noting that accepting the special order could have long-term consequences on the company's relationships with its regular customers.
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