Answers
Answer:
Explanation:
Calculation to determine future sales discounts
Using this formula
Value of Preferred Stock in year 5 =Annual Dividend/Required Rate
Let Plug in the formula
Value of Preferred Stock today =(6/6%)/(1+6%)^5
Value of Preferred Stock today =100/(1+6%)^5
=124.58
Related Questions
Nombre Company management predicts $1,764,000 of variable costs, $2,364,000 of fixed costs, and a pretax income of $282,000 in the next period. Management also predicts that the contribution margin per unit will be $63. (1) Compute the total expected dollar sales for next period. Contribution margin Pretax income (2) Compute the number of units expected to be sold next period. Choose Numerator: / Choose Denominator: = Units / = Units
Suppose that your demand schedule for dvds is as follows: price quantity demanded (income = $10,000) quantity demanded (income = $12,000) $8 40 dvds 50 dvds 10 32 45 12 24 30 14 16 20 16 8 12a. use the midpoint method to calculate your price elasticity of demand as the price of dvds increases from $8 to $10 if (i) your income is $10,000 and (ii) your income is $12,000. b. calculate your income elasticity of demand as your income increases from $10,000 to $12,000 if (i) the price is $12 and (ii) the price is $16.
A firm's current profits are $1,400,000. These profits are expected to grow indefinitely at a constant annual rate of 4 percent. If the firm's opportunity cost of funds is 7 percent, determine the value of the firm: Instructions: Enter your responses rounded to two decimal places. a. The instant before it pays out current profits as dividends. $ 49933333.33 million b. The instant after it pays out current profits as dividends.
Dartmouth Corporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (2,800 units) $ 263,200 Variable costs 106,400 Contribution margin 156,800 Fixed costs 135,000 Operating profit $ 21,800 If the company sells 3,000 units, its total contribution margin should be closest to: $23,357. $175,600. $156,800. $168,000.
Answers
If Louvers, Inc., accepted a $15,000, 180-day, 10 percent note from a customer on May 31. The necessary June 30 adjusting entry for Louvers will be:
Debit Interest receivable $125
Credit Interest revenue $125
Louvers, Inc. Adjusting Journal entry
Debit Interest receivable $125
Credit Interest revenue $125
($15,000 × 10% × 30/360)
(To record interest receivable)
The Interest amount of $125 calculated as ($15,000 × 10% × 30/360) is due at maturity. Between May 31 and June30, a total of 30 days passed.
Inconclusion the necessary June 30 adjusting entry for Louvers will be:
Debit Interest receivable $125
Credit Interest revenue $125
Learn more here: brainly.com/question/20397637
Answer:
Interest receivable
To Interest revenue
(Being the interest receivable is recorded)
Explanation:
The adjusting entry is as follows
Interest receivable
To Interest revenue
(Being the interest receivable is recorded)
The computation is shown below:
= Principal × rate of interest × number of days ÷ (total number of days in a year)
= $15,000 × 10% × (30 days ÷ 360 days)
= $125
The 30 days is calculated from May 31 to June 30
Answers
Answer:
3,074 units sold or total revenue of $236,698 per year
Explanation:
cost of machine $540,000
depreciation expense per year = $540,000 / 5 = $108,000
contribution margin per unit sold = $77 - $29 = $48
we generally calculate the financial break even point of a business by using the following formula:
= EBIT × (1 - interest expense) × (1 - tax rate) - preferred dividends
But when we are dealing with projects, the financial break even point is the sales level at which the project's NPV = $0. If the sales level is lower, then the project will be rejected, and if the sales level is higher, then it should be accepted.
using an annuity formula, the free cash flow per year needed for the NPV = $0 is $540,000 / 3.8897 (PV annuity factor, 9%, 5 periods) = $138,828.19
$138,828.19 = {[(unit sales x $48) - $108,000] x 0.78} + $108,000
$30,828.19 = [(unit sales x $48) - $108,000] x 0.78
$39,523.32 = (unit sales x $48) - $108,000
$147,523.32 = unit sales x $48
unit sales = $147,523.32 / $48 = 3,073.40 units ≈ 3,074 units sold
Final answer:
The financial break-even point is approximately 5,104 units.
Explanation:
The financial break-even point can be calculated by determining the number of units that need to be sold in order to cover the fixed costs. First, we need to calculate the contribution margin per unit, which is the sales price per unit minus the variable cost per unit. In this case, it is $77 - $29 = $48. Next, we divide the fixed costs by the contribution margin per unit to find the break-even point in units. Using the formula: Break-even point (in units) = Fixed costs / Contribution margin per unit. Plugging in the numbers, we get: $245,000 / $48 = 5,104.17. Therefore, the financial break-even point is approximately 5,104 units.
Learn more about Financial break-even point here:
#SPJ11
Answers
Answer:
jury of executive opinion.
Explanation:
The forecasting technique that pools the opinions of a group of experts or managers is known as jury of executive opinion.
For example, when XYZ manufacturing company decides to conduct a series of strategic meetings for its forecasting by involving its key employees such as directors, analysts, managers etc to discuss (gathering opinions, ideas, perspectives and views) before reaching a forecasting consensus. This is simply a jury of executive opinion.
Final answer:
The forecasting technique that combines the opinions of a group of experts or managers is known as the 'jury of executive opinion'. It leverages collective expertise for prediction in complex decision-making situations or when there's a lack of sufficient hard data.
Explanation:
The forecasting technique that gathers and combines the views and opinions of a group of experts or managers is called the Jury of executive opinion. This technique relies on the collective knowledge, experience, and intuition of a group of high-level managers to predict future events or outcomes. It's often used in situations where decision-making is complex, or when there aren't enough hard data available. For instance, a group of corporate executives could use their combined expertise to make forecasts about trends in their industry, the potential impact of significant new legislation, or the likely behavior of their competitors.
Learn more about Jury of executive opinion here:
#SPJ3
Answers
Answer:
It is a binomial experiment.
A success is a worker saying that the economy forced him to reduce the amount of vacation you plan to take this year.
The random variable x can assume any value from 0 to 20, inclusive.
Explanation:
For the question that is asked to the workers( "Has the economy forced you to reduce the amount of vacation you plan to take this year?") there are two possible answers, only two possible outcomes. So yes, it is a binomial experiment.
If it is, identify a success, specify the values of n, p, and q, and list the possible values of the random variable x.
A success is a worker saying that the economy forced him to reduce the amount of vacation you plan to take this year.
n is the amount of workers that participate in the survey. So
p is the decimal probability of a success. Forty-six percent of those surveyed say they are reducing the amount of vacation. So
q is the decimal probability of a failure. The sum of the probability of a failure and a success must be decimal 1. So
The values of the random variable x are the number of workers that say they are reducing their amount of vacation. 20 workers are surveyed, so the random variable x can assume any value from 0 to 20, inclusive.
c. Paid $513 in principal and $91 in interest expense on long-term debt.
d. Earned $88,988 in sales revenue; collected $87,949 in cash with the customers owing the rest on account.
e. Incurred $10,766 in shipping expenses, all on credit. F. Paid $28,241 cash on accounts owed to suppliers. G. Incurred $4,332 in marketing expenses; paid cash. H. Collected $620 in cash from customers paying on account. I. Borrowed $6,359 in cash as long-term debt. J. Used inventory costing $62,752 when sold to customers. K. Paid $177 in income tax recorded as an expense in the prior year.
Answers
Final answer:
The subject of this question is Business at a College level. It provides various transactions and asks for clarification. The step-by-step breakdown of each transaction helps understand the scenario and the financial implications.
Explanation:
The subject of this question is Business and it is at a College level. The question provides various transactions and asks for clarification on the subject matter. Below is a step-by-step breakdown of each transaction:
- Issued stock for $6 cash: This transaction indicates that $6 cash was received in exchange for issuing stock.
- Purchased equipment costing $6,320: This transaction involves the cash payment of $4,893 and the remaining balance of $1,427 charged on account.
- Paid principal and interest expense on long-term debt: In this transaction, $513 is paid towards the principal amount and $91 is paid as interest expense. The debt is not specified.
- Earned sales revenue and collected cash: $88,988 is earned in sales revenue, of which $87,949 is collected in cash. The remaining amount is owed by the customers on account.
- Incurred shipping expenses: $10,766 in shipping expenses is incurred and charged on credit.
- Paid accounts owed to suppliers: $28,241 cash is paid towards accounts owed to suppliers.
- Incurred marketing expenses: $4,332 in marketing expenses is incurred and paid in cash.
- Collected cash from customers paying on account: $620 cash is collected from customers who are paying on account.
- Borrowed cash as long-term debt: $6,359 is borrowed in cash as long-term debt.
- Used inventory costing $62,752: Inventory costing $62,752 is used when sold to customers. The information does not mention the selling price or any profit.
- Paid income tax: $177 is paid as income tax recorded as an expense from the prior year.
Learn more about Business transactions here:
#SPJ6
Final answer:
The question involves interpreting 'business transactions' and their effect on the components of the accounting equation (Assets = Liabilities + Equity). Various business transactions mentioned include issuing stock, purchasing equipment, earning and collecting sales revenue, borrowing and paying long-term debt, and more.
Explanation:
The subject of this question encompasses various business transactions that ultimately affect an entity's financial statements. The transactions in this question fall into categories of equity transactions (issuing stock), asset acquisitions (purchasing equipment), liabilities and equity transactions (borrowing and paying long-term debt), revenue and receivable transactions (earning and collecting sales revenue), expense and payable transactions (incurred shipping and marketing expenses), inventory transactions (using inventory sold to customers) and tax transactions (paying income tax recorded as an expense in the previous year).
Each of these transactions will have a dual effect on the components of the accounting equation (Assets = Liabilities + Equity).
For instance, when the company issued stocks for $6 cash, it increased its cash asset and its equity. When the company purchased equipment costing $6,320, paying $4,893 in cash and charging the rest on account, it increased its equipment asset, decreased its cash asset and increased its Accounts Payable liability.
Learn more about Business Transactions here:
#SPJ6
Answers
Answer:
Payroll = $95,000,
Indirect labor = $25000
Direct labor paid = $95000 - $25000 = $70000
∵ predetermined overhead application rate is 170 % of direct labor cost
Overhead applied to work in process = 70000 × 170 %
= $119,000
Journal entry:
Debit ⇒ Work in process = $1190000
Credit ⇒ Factory Overheads = $119000
Final answer:
To record the application of factory overhead to production, you first calculate the direct labor cost, then multiply by the predetermined overhead rate. The journal entry is a debit to Work in Process and a credit to Factory Overhead for this calculated amount.
Explanation:
The Portside Watercraft company is using a job order costing system and a predetermined overhead rate based on direct labor cost. In this case, to record the application of factory overhead to production, you would first calculate the factory overhead applied by multiplying the direct labor cost (total labor cost minus indirect labor cost) by the predetermined rate.
The direct labor cost would be calculated by subtraction: $95,000 (total factory payroll) - $25,000 (indirect labor) = $70,000. Then multiply $70,000 by 170% (the predetermined overhead rate) to get $119,000. The journal entry would then be a debit to Work in Process for $119,000 and a credit to Factory Overhead for $119,000.
Learn more about direct labor cost here:
#SPJ3