a. Calculate book value per share of common stock. b. Assume that the company also had $1,000,000 worth of convertible bonds. The bonds are convertible at one $1,000 bond into 150 shares of stock. There are also stock options to buy 120,000 shares at a price of $5 per share. The stock is currently trading at $30 per share.Recalculate your answer to part a) taking into account dilutive effects of the above.
Answers
Answer:
The correct answer is "$8.65".
Explanation:
The given question is incomplete. Please find attachment of the complete question.
The given values are:
Total stockholders equity
= 4980000
Preferred stock
= 1000000
Number of common stock issued
= 460000
So,
The book value per share of common stock will be:
= \(\frac{ (Total \ Stockholders \ Equity - Preferred \ Stock)}{No. \ of \ common \ stock \ issued}\)
On putting the values, we get
= \(\frac{(4980000 - 1000000)}{460000}\)
= \(\frac{3980000}{460000}\)
= \(8.65\)$
Related Questions
Which of the following would appear in the cash flows from investing activities section of the statement of cash flows?
a. Cash received from stock issued
b. Cash received from bonds payable
c. Depreciation expense on equipment
d. Cash paid for equipment
Answers
The correct answer is:
d. Cash paid for equipment
Cash flows from investing activities include transactions related to the acquisition or sale of long-term assets such as property, plant, and equipment. Cash paid for the purchase of equipment would be categorized as an investing activity because it involves the outflow of cash for the acquisition of a long-term asset.
Match the tasks with the professionals who would complete them.
nanobiologist
database administrator
computer help desk
technician
statistician
video game designer
printing equipment
operator
special effects artist
automotive engineer
graphics illustrator
Answers
Considering the job tasks and responsibilities, matching the tasks with the professionals who would complete them, we have the "Nanobiologist: STEM."
Other professionals who would complete tasks under STEM include the following:
StatisticianAutomotive engineer.STEM is an acronym for Science, Technology, Engineering, and Mathematics.
The professionals who would complete tasks under Information Technology include the following:
Database administrator;Computer help desk technician;Printing equipment operator.The professionals who would complete tasks under Arts, A/V Technology, and Communications include the following:
Special effects artist,Graphics illustrator.Video game designer.AV technology is audiovisual technology that includes sound and video, such as video games.
Hence, in this case, it is concluded that different professionals perform different functions.
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Pacific Ink had beginning work-in-process inventory of $1,070,790 on October 1. Of this amount, $436,900 was the cost of direct materials and $633,890 was the cost of conversion. The 65,000 units in the beginning inventory were 30 percent complete with respect to both direct materials and conversion costs During October, 136,000 units were transferred out and 47,000 remained in ending inventory. The units in ending inventory were 80 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. Costs incurred during the period amounted to $3,390,200 for direct materials and $4,343,130 6.00 points
Required
(1) Compute the equivalent units for the materials and conversion cost calculations.
(2) Compute the cost per equivalent unit for direct materials and for conversion costs using the weighted-average method. (Round your answers to 2 decimal places.) Officulty 2 Medium Objective: 08-0 600 points Compute the costs of goods transferred out and the ending inventory using the weighted- average method. (Round intermediate calculations to 2 decimal places.) Ending inventory
Answers
Answer:
hello dummy
Explanation: hoy hoy hoy
A company had average total assets of $902000. It's gross sales were $1,085,000 and its net sales were $995000. The company's total asset turnover equals:
Answers
Answer:
Total Asset Turnover = Net Sales/Average Total Assets
Total Asset Turnover = $995,000/$902,000 = 1.10
Explanation:
I apologize if any part of my answer is wrong i tried my absolute best to help you improve and get better results in whatever your trying to do
A misconception is a misunderstanding.
O True
False
Answers
The statement ''A misconception is a misunderstanding.'' is True. A misconception refers to a misunderstanding or a mistaken belief about something.
It is a cognitive error where an individual holds an incorrect understanding of a particular concept, idea, or situation. Misconceptions can arise due to various factors such as incomplete information, misinterpretation of information, cultural influences, biases, or a lack of critical thinking. Misconceptions can be found in various domains, including science, history, language, and everyday life. They can persist even in the presence of contradictory evidence or when confronted with accurate information. Correcting misconceptions is important as they can lead to flawed decision-making, misinformation spreading, and hinder personal and intellectual growth.
Addressing misconceptions requires effective communication, education, and the promotion of critical thinking skills. By challenging and correcting misconceptions, individuals can develop a more accurate understanding of the world around them, make informed judgments, and engage in meaningful discussions based on reliable information.
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kingsport containers company makes a single product that is subject to wide seasonal variations in demand. the company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. its estimated costs, by quarter, for the coming year are given below:
Answers
Seasonal demand refers to the volatility in demand that most companies can expect due to external events.
Seasonal demand refers to changes in consumer purchasing habits over the seasons. This may be due to seasonal changes (e.g. increased demand for winter boots in winter compared to increased demand for sunglasses in summer). Example: Swimsuit, Camping equipment, beach umbrella. As weather conditions change, so does the demand for products. In winter, certain groups of goods are in greater demand: down jackets, Christmas trees and hats.
1. Assume $0.
30 adjustable production management overhead per unit, total fixed overhead for the quarter is $182,000
2. Assuming the previous 3rd quarter price forecasts are accurate, the 4th quarter projected unit price is $4.80 per unit.
3. The exact reason why the projected unit price fluctuates from season to season:
The total quantity produced fluctuates greatly from 160,000 in Q1 to 40,000 in Q3.
Because the prevalence of overhead costs is fixed, the total cost in a quarter with lost production would be too high.
4. Assuming that the firm determines the overhead cost for one plant and is no more than 1/4 higher, the generating unit cost for all units produced during the year is $5.12.
The table is giving below:
Quarter First Second Third Fourth
Direct materials $200,000 $100,000 $50,000 $150,000
Direct labor 120,000 60,000 30,000 90,000
Variable overhead 48,000 24,000 12,000 36,000
Fixed overhead 172,000 172,000 172,000 172,000
Man. overhead 220,000 196,000 184,000 208,000
Total costs (a) $540,000 $356,000 $264,000 $448,000
Number of units 120,000 60,000 30,000 90,000
to be produced (b)
Estimated unit $4.50 $5.93 $8.80 $4.98
product cost (a) ÷ (b)
Total fixed manufacturing overhead = $172,000 x 4
= $688,000 / total number of units produced
= $688,000 / 300,000 units = $2.29333 per unit.
So, now the total variable overhead costs
= $0.40 + $2.29333
= $2.69333 per unit
Total Costs per quarter:
Quarter First Second Third Fourth
Direct materials $200,000 $100,000 $50,000 $150,000
Direct labor 120,000 60,000 30,000 90,000
variable overhead 323,200 161,600 80,800 242,400
Total costs (a) $643,200 $321,600 $160,800 $482,400
Number of units 120,000 60,000 30,000 90,000
to be produced (b)
Estimated unit $5.36 $5.36 $5.36 $5.36
product cost (a) ÷ (b)
Complete Question:
Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below:
Quarter
First Second Third Fourth
Direct materials $200,000 $100,000 $50,000 $150,000
Direct labor 120,000 60,000 30,000 90,000
Manufacturing
overhead 220,000 196,000 184,000 ?
Total manufacturing
costs (a) $540,000 $356,000 $264,000 ?
Number of units to
be produced (b) 120,000 60,000 30,000 90,000
Estimated unit
product cost (a) ÷ (b) $4.50 $5.93 $8.80 ?
Management finds the variation in quarterly unit product costs to be confusing and difficult to work with. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product.
Required:
1. Assuming the estimated variable manufacturing overhead cost per unit is $0.40, what must be the estimated total fixed manufacturing overhead cost per quarter?
2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter?
3. What is causing the estimated unit product cost to fluctuate from one quarter to the next?
4. Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year.
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The federal government is the only entity that requires corporations to pay income tax on their net income .(True /False)
Answers
Answer:
False
Explanation:
Why are visually interesting effects, such as WordArt, to be used sparingly? How does understanding your intended audience’s expectations inform how and when you use a visual effect, such as WordArt? Would you approach using WordArt in the same way in a presentation directed to young adults and a presentation directed to business professionals?
Answers
Explain how a consumer’s place of residence has an especially large impact on their purchase of sports and entertainment commodities.
Answers
Answer:
A consumers place of residence has a large impact on their purchase because of how they live in that area and their community.
Explanation:
Example, if you live in New York City, marketers probably will not target you as much to purchase their four wheeler as they would someone who lives in the country.
A part of a business's message that distinguishes it from all its competitors
is referred to as what?
A. Cultural sensitivity
B. Unique selling proposition
C. Superiority clause
D. Isolation technique
Answers
Answer:
Unique selling proposition.
Answer:b
Explanation:
advantages of discounted payback period
Answers
Answer:
The main advantage of the discounted payback period method is that it can give some clue about liquidity and uncertainly risk. Other things being equal, the shorter the payback period, the greater the liquidity of the project. Also, the longer the project, the greater the uncertainty risk of future cash flows.
What is an incentive
Answers
Answer:
An incentive is something that motivates or encourages a person to take a specific action. Incentives can be positive, such as a reward or a benefit, or negative, such as a punishment or a cost. Incentives can be used to influence behavior and decision-making, and they are often used in economic and business contexts to motivate employees, consumers, or other stakeholders. Incentives can take many forms, including financial rewards, recognition, privileges, or other benefits.
Joe is a manager. He recently purchased a new stock that is permissible and requires reporting.
What action should he take upon settlement of the purchase?
Answers
Answer:
The action that should be taken upon settlement of the purchase will be as follows: When the material enters the premises they require to be checked if it is according to the stock ordered. The delivery challan requires to be signed and given back to the seller of the goods.
The action should he take upon settlement of the purchase is Material must be verified upon arrival to the building to ensure that it matches the stock order.
What is a manager?
A manager refers to a person who is responsible head of any project and helps in arranging the resources, checking the progress, and timely completion of it in order to achieve the vision and goal of the organization.
It is necessary to verify that the material is in agreement with the inventory order as it enters the structure. It is necessary to sign the shipment challan and return it to the product vendor.
There must be entries made in the inventory book when the material comes onto the property. In order to provide evidence, the journal entry must be recorded in the books of accounts.
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!!!!! WORTH 100 POINTS !!!!!
_________________________________________________________
OBJECTIVES:
What is the advantages and disadvantages of credit?
Name the places where you can get credit.
List 3 main types of charge accounts.
Answers
One of the advantage of credit is: Credit can help you to pay for expenses in a case of unforeseen or unexpected circumstance.
What is credit?Credit can be defined as borrowing money from a lender in which you are expected to pay at a due date
Advantage of credit:
Credit can help you to pay for expenses in a case of unforeseen or unexpected circumstanceCredit tend to have loan interest rate.Convenient.It enables you to obtain things right away.It enables you to establishes a good credit rating.Disadvantage of credit:
It can lead to high-interest rates if not paid at the expected due date.Fee charged for delay in payments.It is easy to misuse.It can lead to higher temptation.It can lower credit rating.Name of places where you can get credit are:
BanksSavings and Loan InstitutionsCredit Unions etcThe 3 main types of charge accounts are:
RegularRevolvingBudgetTherefore One of the advantage of credit is: Credit can help you to pay for expenses in a case of unforeseen or unexpected circumstance.
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Assume that you are offered an annuity that pays $100 at the end of each year for 10 years. You could earn 8% on your money in other investments with equal risk. What is the most you should pay for the annuity
Answers
Answer:
The annuity is worth $671.01
Explanation:
Giving the following information:
Cash flow= $100
The number of years= 10 years.
Interest rate= 8%
To calculate the value of the annuity, we need to calculate the present value.
First, we need to calculate the final value:
FV= {A*[(1+i)^n-1]}/i
A= annual cash
FV= {100*[(1.08^10)-1]} / 0.08
FV= $1,448.66
Now, the present value:
PV=FV/(1+i)^n
PV= 1,448.66/(1.08^10)
PV= $671.01
Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below.
Balance Sheets
2019 2018
Assets
Cash and equivalents $100 $85
Accounts receivable 275 300
Inventories 375 250
Total current assets $750 $635
Net plant and equipment 2,300 1,490
Total assets $3,050 $2,125
Liabilities and Equity
Accounts payable $150 $85
Accruals 75 50
Notes payable 150 75
Total current liabilities $375 $210
Long-term debt 450 290
Total liabilities 825 500
Common stock 1,225 1,225
Retained earnings 1,000 400
Common equity 2,225 1,625
Total liabilities and equity $3,050 $2,125
Income Statements
2019 2018
Sales $2,265 $1,565
Operating costs excluding depreciation and amortization 1,250 1,000
EBITDA $1,015 $565
Depreciation and amortization 100 75
EBIT $915 $490
Interest 63 46
EBT $852 $444
Taxes (25%) 213 111
Net income $639 $333
Dividends paid $54 $48
Addition to retained earnings $585 $285
Shares outstanding 100 100
Price $25.00 $22.50
WACC 10.00%
The balance in the firm's cash and equivalents account is needed for operations and is not considered "excess" cash.
Using the financial statements given above, what is Rosnan's 2019 free cash flow (FCF)? Use a minus sign to indicate a negative FCF. Round your answer to the nearest cent.
Answers
The 2018 free cash flow for Rosnan Industries is $158. The balance sheet was the based on the Rosnan Industries' 2019 and 2018.
Particular 2018 2019
Current Asset $635 $750
Current Liability $135 $255
Net working capital 500 525
Net increases in working capital 25
The capital expenditure is made are computed:
Ending balance of fixed asset 2300
Add: Depreciation 100
Less: Begging of fixed amount 1490
Capital expenditure: 910
Net income: 677
Add: Depreciation 100
Less: Capital expenditure -910
Less: Net increases in Net WC -25
Free cashflow -158
The 2018 free cash flow for Rosnan Industries is $158.
As a result, the significance of the Rosnan Industries' 2019 and 2018 balance sheets are the aforementioned.
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Baiman, Inc. issues $1,000,000 of zero-coupon bonds that mature in 10 years. Compute the bond issue price assuming that the bonds' market rate is:
a. 10% per year compounded semiannually.
Round your answers to the nearest dollar.
Answers
Answer:
Zero-cupon bond= $376,889.48
Explanation:
Giving the following formula:
Face value= $1,000,000
Mature= 10*2= 20 semesters
Market rate= 0.1/2= 0.05
To calculate the price of the bond, we need to use the following formula:
Zero-cupon bond= [face value/(1+i)^n]
Zero-cupon bond= [1,000,000 / (1.05^20)]
Zero-cupon bond= $376,889.48
Which measure of central tendency is affected by outliers?
Answers
The measure of central tendency that is most affected by outliers is the mean.
The mean is calculated by summing all the values in a dataset and dividing it by the number of data points. However, if there are outliers present in the dataset, which are extreme values that significantly differ from the rest of the data, they can heavily influence the mean.
Outliers have a disproportionate impact on the mean because they contribute to the sum of the values and can pull the mean towards their extreme values.
In summary, while the mean is more susceptible to the influence of outliers, the median and mode are more resistant to their impact and often provide more reliable measures of central tendency in such cases.
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The value of which of these expressions is closest to e?
Answers
Answer: B
Explanation:
Therefor, value 2.659 is closest to the value of e
( I hope this helped of not I’m sorry)
A promissory note can best be described as __________., a. an interest-bearing IOU, b. a guarantee of a line of credit, c. a commitment to lend money to someone, d. a government-backed bond
Answers
A promissory note can best be described as: a. an interest-bearing IOU.
What is promissory note?Promissory note can be defined as a written note that help to shows that a person who lend a money from another person promise to payback. The note contains a promise by the borrower to pay back the lender within a stipulated period of time.
A promissory note can tend to be described as IOU which full meaning is I OWE YOU which implies that a borrower is telling the lender that he/she owe the lender some certain amount of money which the borrower will have to payback.
A promissory note also contains the terms and conditions of the agreement and this terms and agreement includes the following :
The principal amountThe loan maturity dateThe interest etcTherefore we can conclude that the correct option is A.
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Felicia owns a harvesting machine that she uses to harvest wheat. She operates her harvester on many different
farms each year. Her job is best described as a(n)
Oscar orders, stocks, and sells parts for tractors and other farming equipment. He works for a tractor dealership and
frequently visits different farms to meet customers and show them his products. Oscar's job is best described as a(n)
Jodi is a mechanic who specializes in fixing broken truck and tractor engines. She sometimes works at a tractor
dealership and sometimes visits farms to fix broken-down equipment. Jodi's job is best described as a(n)
Answers
Answers :
1.Agricultural Equipment Operator
2. Parts Salesperson
3. Farm Equipment Mechanic
Answer:
Agricultural Equipment Operator
Parts Salesperson
Farm Equipment Mechanic
Explanation: correct
Double declining balance
Answers
The double-declining balance method is an effective way to depreciate assets in the early years of their useful life and reduce the balance of the asset more quickly than the straight-line method. This helps companies to account for the asset's cost more accurately over time and to recognize its diminishing value as it ages.
Double-declining balance method is a method of depreciation that is an accelerated method.
The depreciation rate is twice as much as the straight-line method's depreciation rate.
This method begins with an asset's value at the beginning of its use and then decreases at a constant rate throughout its useful life until it reaches the asset's salvage value.
This depreciation method is most commonly used for assets that depreciate quickly at the beginning of their useful life and then slowly depreciate over time until they are scrapped or sold.
Assets such as computers, vehicles, and machinery are common examples of assets that use this method of depreciation.
Double-declining balance method can be calculated using the following formula:Annual depreciation = (2 / useful life in years) * book value at the beginning of the yearOrDepreciation rate = 2 / useful life in years.
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Which consumer protection law requires that products be free of defects when sold?
a. used car rule
b. uniform commercial code
c. bill of consumer rights
d. credit card accountability, responsibility, and disclosure act
Answers
The uniform commercial code is a law that requires that products are free of defects when they are sold.
What is the uniform commercial code?This is a term, that is used to refer to all of the commercial laws that are used to apply to the buying and the selling of goods in the US.
The law protects customers in such a way that the products are free of defects when they buy. The products can also be returned if they are not.
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The consumer protection law that requires that products be free of defects when sold is the b. uniform commercial code
What is Consumer Protection Laws?This refers to those laws put in place in order to protect the customer from unethical practices of business owners.
Hence, we can note that the uniform commercial code is the consumer protection law that requires that products be free of defects when sold so that the customers can get the maximum value for the products.
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un-of-the-mills provides your marketing firm with the following data: when the price of splishy splashers increases by 7%, the quantity of raskels sold increases by 7% and the quantity of mookies sold decreases by 7%. your job is to use the cross-price elasticity between splishy splashers and the other goods to determine which goods your marketing firm should advertise together. Complete the first column of the following table by computing the cross-price elasticity between splishy splashies and raskels, and then between splishy splashies and mookies. In the second column, determine if splishy splashies are a complement to or a substitute for each of the goods listed. Finally, complete the final column by indicating which good you should recommend marketing with splishy splashies. Relative to Splishy Splashies Recommend Marketing with Splishy Splashies Cross-Price Elasticity of Demand Complement or Substitute Raskels Mookies
Answers
The following formula can be used to determine the cross-price elasticity of demand between two goods: Cross-price Elasticity is calculated as follows: (Price of Good A / Quantity of Good A) * (Price of Good A / Quantity of Good A)
Where Good B is either raskels or mookies and Good A is splishy splashers. Splishy splashers and raskels have a cross-price elasticity of:(Price of Splishy Splashies / Quantity of Splishy Splashies) * (7%) = Cross-price Elasticity Elasticity of Cross-price = 1 Since splishy splashers and raskels are alternatives for one another, the cross-price elasticity is positive and equal to 1. Regarding the price elasticity between mookies and splishy splashers: Cross-price Elasticity is equal to (-7% / 7%). * (Splishy Splashies Price / Splishy Splashies Quantity) Price Elasticity at Cross-price = -1 Given that the cross-price elasticity is negative, splishy splashers and mookies are said to be complementary goods. The finished table would therefore appear as follows: Splishy Splashies: Recommend marketing with them, Cross-Price Elasticity of Demand, Complement or Substitute Raskels, Yes or No, Substitute Mookies, Yes or No, Complement This study should lead your marketing company to advise marketing cookies with splashy splashers since they complement one another.
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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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SBA a business from any of the THREE sectors and conduct a research using newspaper clips, business articles, any business magazines, News 24 and a other business websites to answer the following Research (Part A) for your Select a business business questions. (Collect FIVE resources) must be NB After choosing the sector you able to motivate your answer then provide picture/ newspaper article of the business -You must identify challenges experienced by the business and classify those challenges according to the three Business Environments and state the extent of control.
Answers
Selecting a business from one of the three sectors, conducting research using newspaper clips, business articles, any business magazines, News 24, and other business websites to answer research (Part A) questions. This article will discuss the challenges faced by the business and classify them based on the three business environments. The business selected for this research is Sasol, which belongs to the primary sector. Sasol is an integrated energy and chemicals firm with operations in over 30 countries and more than 30,000 employees. It mines coal and convert it into synthetic fuels and chemical feedstock. Sasol operates in a challenging environment, and it faces many challenges. However, in this research, we will discuss the most important challenges faced by Sasol. The following are the difficulties Sasol faces: Environmental challenges: Sasol is a large company, and it emits greenhouse gases, which affect the environment. Furthermore, environmental regulations have become more stringent, which is a significant challenge for the company. Sasol must adhere to environmental regulations, which will impact its operations. Sasol must also protect its reputation, which is critical to its success. Sasol should be proactive in responding to environmental challenges by investing in renewable energy and ensuring that it adheres to environmental regulations. Economic challenges: Sasol faces economic challenges, including fluctuating oil prices, currency volatility, and rising operating costs. These issues are beyond the company's control, and they can have a significant impact on Sasol's financial performance. Sasol must adapt to economic changes by diversifying its revenue streams and improving its operational efficiency. Social challenges: Sasol faces social challenges such as workforce diversity, employee engagement, and community relations. Sasol must address these challenges by fostering a diverse and inclusive culture, promoting employee engagement, and engaging with the community. Sasol must also ensure that its business practices align with the expectations of its stakeholders, including customers, employees, and investors. In conclusion, Sasol faces many challenges, which can be classified into three categories: environmental, economic, and social. Sasol has limited control over some of these challenges, but it must be proactive in responding to them to ensure its long-term success.
A business that you can select for this analysis is the importation of cars into a country. Some challenges that may affect the importation of cars include import duties and trade agreements between nations.
What are business challenges?Business challenges refer to those problems that are encountered by entrepreneurs who want to go into any area of trade. For those into the importation of cars and other such items, excessive import duties might be limiting to them.
They may also experieice trade agreements sbetween nations and rising forex that amy not be favorable for trade.
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Al-Baida wants to buy a new machine with special purposes for an amount $ (1) million for the production of a product, and the economic life of the machine is (10) years, bearing in mind that there is no residual value for the machine at the end of its useful life. The company adopts the straight-line method in calculating the depreciation, and it is expected that the annual revenues from operating the machine will be 1,200,000 ID, and the annual expenses excluding taxes, (700,000 ID. If you know that the company adopts a discount rate of 12% The income tax rate is 30% for all years. Required: Calculate the following: .1. payback period. 2. Rate of accounting return on investment.
Answers
1. Payback period will be 2 years.
2. The rate of accounting return on investment for the machine is 35%.
To calculate the payback period, we need to determine the number of years it takes for the company to recover the initial investment of $1 million.
Step 1: Calculate the annual net cash flow.
Annual net cash flow = Annual revenues - Annual expenses excluding taxes
Annual net cash flow = $1,200,000 - $700,000 = $500,000
Step 2: Determine the payback period.
Payback period = Initial investment / Annual net cash flow
Payback period = $1,000,000 / $500,000
Payback period = 2 years
Therefore, the payback period for the investment in the machine is 2 years.
To calculate the rate of accounting return on investment, we need to determine the average annual net income generated by the investment.
Step 1: Calculate the average annual net income.
Average annual net income = (Annual revenues - Annual expenses excluding taxes) * (1 - Tax rate)
Average annual net income = $500,000 * (1 - 0.30)
Average annual net income = $350,000
Step 2: Calculate the rate of accounting return on investment.
Rate of accounting return on investment = Average annual net income / Initial investment * 100
Rate of accounting return on investment = $350,000 / $1,000,000 * 100
Rate of accounting return on investment = 35%
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Which of the following statements concerning product costs versus general, selling, and administrative costs is false?
a. Product costs incused during the period will initially appear as inventory on the balance sheet.
b. General, selling, and administrative costs are always expensed when paid.
c. Product costs may be divided between the balance sheet and income statement.
d. General, selling, and administrative costs never appear as inventory on the balance sheet.
Answers
What is the income from operations of discontinued component?
Answers
Answer:
Income (or Loss) from Discontinued Operations is a line item on an income statement of a company below Income from Continuing Operations and before Net Income. It represents the after tax gain or loss on sale of a segment of business and the after tax effect of the operations of the discontinued segment for the period. :)
Sara works at a printing company. She and her colleagues have to stagger
their tasks carefully because each of their projects require not only the
printers, but other equipment as well. Sara is currently working to fulfill an
order for 5,000 flyers, which are due tomorrow. Her customer just called to
say that they need additional 5,000 flyers.
What will be least important to Sara as she determines whether her company
can accommodate the request?
A. Whether her company has enough paper on hand
B. Whether her company can print the additional flyers without
negatively affecting the other projects
C. Whether there is enough time to print the additional flyers by
tomorrow
D. Why the customer needs 5,000 extra flyers
Answers
Answer: D. Why the customer needs 5,000 extra flyers
Explanation:
The important factors that Sara will consider to know whether her company can accommodate the request are:
• Whether her company has enough paper on hand
• Whether her company can print the additional flyers without negatively affecting the other projects
• Whether there is enough time to print the additional flyers by tomorrow.
These factors above are important as they'll determine if she can accept the request or not. For example, in a situation where there's no enough paper, then the request should not be accepted.
The least important factor for Sara to consider will be "Why the customer needs 5,000 extra flyers". This is not of concern to Sara and shouldn't bother her.
Answer:
D. why the customer needs 5,000 extra flyers