Peak Performance Sporting Goods Company continues to perform well. Company executives credit this to the strong partnerships it enjoys with category killer and large discount chains. Last week Peak Performance reported basic EPS [earnings per share] = $.80/share. If the firm has 4,000,000 shares outstanding, net income after taxes for the same period =

Answers

Answer 1

Answer:

Answer:

$3,200,000

Explanation:

The net income after taxes (NIAT) is determined as the product of the basic earnings per share (EPS) by the number of shares outstanding.

Since Peak Performance Sporting Goods has an EPS of $0.80 per share and 4,000,000 shares outstanding, their net income after taxes, for this period is:

$NIAT = \$0.80 *4,000,000\nNIAT = \$3,200,000$

Net income after taxes for the same period = $3,200,000.

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Determining opportunity cost Juanita is deciding whether to buy a dress that she wants, as well as where to buy it. Three stores carry the same dress, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $102 for the dress: Store Travel Time Each Way Price of a Dress (Minutes) (Dollars per dress) Local Department Store 15 102 Across Town 30 87 Neighboring City 60 63 Juanita makes $58 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $58 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.Store Opportunity Cost of Time Price of a Suit Total Cost(Dollars) (Dollars per suit) (Dollars)Local Department Store 103 Across Town 88 Neighboring City 63 Assume that Juanita takes opportunity costs and the price of the suit into consideration when she shops. Juanita will minimize the cost of the suit if she buys it from the:______. .

Caroline is working for a marketing firm making $60,000 per year but considers starting her own marketing company. Caroline has determined that to launch the business, she needs to invest $100,000 of her own funds. The annual cost of running the business will include $75,000 for the rent of the office space, $190,000 for employee wages, and $6,000 for materials and utilities. Caroline plans to manage the business, which means that she will have to quit her current job. Suppose that the interest rate (or rate of return) on investments in the economy is 6%.Caroline's total implicit cost per year is .

Answers

Answer:

$66,000

Explanation:

The computation of the total implicit cost per year is shown below:

= Given up salary + investment amount × interest rate on investment in the economy

= $60,000 + $100,000 × 6%

= $60,000 + $6,000

= $66,000

We simply added the given up salary and investment amount after considering the interest rate on investment so that the accurate amount could come

Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $660,000 payroll for 8,600 direct labor-hours. Listed below is cost driver information used in the product-costing system: Overhead Cost Pool Budgeted Overhead Cost Driver Estimated Cost Driver Level Machine setups $ 310,000 # of setups 310 setups Materials handling 115,800 # of barrels 9,650 barrels Quality control 1,290,000 # of inspections 3,000 inspections Other overhead cost 1,075,000 # of machine hours 21,500 machine hours Total overhead $ 2,790,800 A current product order has the following requirements: Machine setups 28 setups Materials handling 720 barrels Quality inspections 90 inspections Machine hours 1,700 machine hours Direct labor hour 564 hours Using ABC, how much total overhead is assigned to the order?

Answers

Answer:

Total overheads assigned to order = $203,621.36

Explanation:

As for the information provided:

Payroll = $(660,000)/(8,600) =$ = $76.74 per hour

Setups = $(310,000)/(310)$ = $1,000 per setup

Material Handling = $(115,800)/(9,650)$ = $12 per barrel.

Quality Control = $(1,290,000)/(3,000) =$ $430 per inspection.

Other overhead = $(1,075,000)/(21,500) =$ = $50 per machine hour.

Details of current product requirement: And the related expense shall be :

28 setups = 28 $*$ $1,000 = $28,000

720 barrels = 720 $*$ $12 = $8,640

90 inspections = 90 $*$ $430 = $38,700

1,700 machine hours = 1,700 $*$ $50 = $85,000

564 labor hours = 564 $*$ $76.74 = $43,281.36

Total overheads assigned to order = $203,621.36

Best Western University wants to increase the size of its student body by shifting the demand curve for its educational services to the right. Which of the following will most likely NOT shift its demand curve to the right?a. really popular, winning sports teams
b. an improved record in student job placements
c. lower tuition and lower prices on textbooks
d. a "best buy" rating in a national magazine

Answers

Answer: C. lower tuition and lower prices on textbooks

Explanation:

A shift in demand simply means that consumers wish to buy more at same price. It is caused by other factors that affect demand except the price. On the other hand, a movement along the demand curve is caused as a result of a change in price.

Based on the options given, lower tuition and lower prices on textbooks will not shift the demand curve since it's a change in price and will rather cause a movement along the demand curve.

Snap On Inc has a beta of 2.67 and the expected market return is 0.19. In addition, Treasury bills (risk-free asset) are currently yielding 0.02. Find the expected return for Snap On Inc.

Answers

Answer: Expected Return = 0.47

Explanation:

Using the CAPM, The Capital Asset Pricing Model formulae , we have that

Expected Return = Risk Free Rate + Beta(Market Return - Risk Free Rate)

Where

market return is 0.19

Beta =2.67

risk-free asset= 0.02

Expected Return=0.02 +2.67 X (0.19 - 0.02)

=0.02 +2.67 X (0.17)

0.02 +0.4539

Required Return=0.47

Therefore Expected Return for Snap On Inc is 0.47

Chang Corp. has $375,000 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $550,000, and its net income was $25,000. Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15%. What profit margin would the firm need in order to achieve the 15% ROE, holding everything else constant? Do not round your intermediate calculations.

Answers

Answer:

10.22%

Explanation:

Data provided in the question:

Assets of Chang corp. = $375,000

Sales = $550,000

Net income = $25,000

Net Income required at 15% ROE = 15% × $375,000

= $56,250

Therefore,

The profit margin = $\frac{\textup{Net income}}{\textup{Total sales}}*100\%$

The profit margin = $\frac{\textup{56,250}}{\textup{550,000}}*100\%$

The profit margin = 10.22%

Answer:

Profit Margin = 10.227%

Explanation:

Given:

Total Assets = $375,000(Common equity)

Sales = $550,000

Net Income = $25,000

Return on equity = 15% = 15/100 = 0.15

Profit margin = ?

Computation of profit margin:

Profit margin = (Common Equity × Return on equity) / Sales

Profit Margin = ($375,000 x 0.15) / $550,000

Profit Margin = ($56,250) / $550,000

= 0.102272

Profit Margin = 10.227% (approx)

The net income reported on the income statement of Whispering Winds Corp. for the current year was $1251000. Depreciation recorded on plant assets was $236000. Accounts receivable and inventories increased by $66000 and $44000, respectively. Prepaid expenses and accounts payable decreased by $6000 and $61000, respectively. How much cash was provided by operating activities during the year

Answers

Answer:

$1,454,000

Explanation:

Calculation to determine How much cash was provided by operating activities during the year

Using this formula

Operating activities=Net income+Depreciation+ Increased in Accounts receivable -Increased in inventories + Decreased in Prepaid expenses - Decreased in accounts payable

Let plug in the formula

Operating activities=$1251000 + $236000 -$66000 - $44000 +$6000 - $61000

Operating activities=$1,454,000

Therefore the amount of cash was provided by operating activities during the year is $1,454,000

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(1) You go to Seven-11 and see the price of a super Slurpee quoted as $1.39. (2) You buy the super Slurpee and pay with $1.39 in cash. In the first instance money serves as ___________, while in the second instance money serves as ___________.