Answer:
General Specialty Pharmacy
Sales $1,400,000 $600,000 $420,000
Variable cost $520,000 $360,000 $280,000
Contribution margin A $880,000 $240,000 $140,000
Fixed Expenses B $510,000 $420,000 $290,000
Net income/(Loss) (A-B) $370,000 ($180,000) ($150,000)
20. Based on predicted production of 12,000 units, a company anticipates $150,000 of fixed costs and $123,000 of variable costs. The flexible budget amounts of fixed and variable costs for 10,000 units are: a. $125,000 fixed and $123,000 variable. b. $102,500 fixed and $150,000 variable. c. $125,000 fixed and $102,500 variable. d. $150,000 fixed and $123,000 variable. e. $150,000 fixed and $102,500 variable.
Answer:
e. $150,000 fixed and $102,500 variable.
Explanation:
fixed costs do not vary with output, so the fixed costs must be the same for both budgets = $150,000 (doesn't matter if production is 12,000 or 10,000 or 8,000, or 15,000 units)
variable costs per unit = $123,000 / 12,000 = $10.25
variable costs for flexible budget (10,000 units) = $10.25 x 10,000 = $102,500
Equity capital is....
a. paid back within one year.
b. not a loan but a form of stock.
c. a loan from family.
d. paid back after five years.
Answer:
b. not a loan but a form of stock.
Explanation:
Capital can either be equity or debt capital. Debt capital refers to borrowed funds either from the banks or other lenders.
Equity capital is the owner's contribution to the business. It is what the shareholders of the business have given to the business as capital. Equity is not a loan, nor is it meant to be refunded. It represents the owner's investment in the business.
Pug Photoshop sold $2,900 in gift cards on a special promotion on October 15, 2021, and sold $4,350 in gift cards on another special promotion on November 15, 2021. Of the cards sold in October, $290 were redeemed in October, $725 in November, and $870 in December. Of the gift cards sold in November, $435 were redeemed in November and $1,015 were redeemed in December. Pug views the probability of redemption of a gift card as remote if the card has not been redeemed within two months. At 12/31/2021, Pug would show a deferred revenue account for the gift cards with a balance of: Multiple Choice $3,915. $2,900. $4,350. $0.
Answer:
the deferred revenue account is $2,900
Explanation:
The computation of the deferred revenue account is as follows;
= November sales - redemption of November and December month
= $4,350 - $435 - $1,015
= $2,900
Hence the deferred revenue account is $2,900
It could be come after applying the above formula
Therefore the correct option is 2nd
What has held Russia back from progressing to a free market?
Answer:
I dont knpwo
Explanation:
jfbwuybfuywfiuwkjedc
A startup will start paying dividends at the end of year 6. The initial growth rate is 10%. This growth rate will continue until year 10. Starting from year 11, the growth rate drops to 5%. The discount rate is 20%. What should the price be at the end of year 5 if the initial dividend is $10.
Answer: $76.46
Explanation:
The price at the end of year 5 is the sum of the present values of the dividends from year 6 to 10 and the present value of the terminal in year 10.
Year Dividends Discount factor Present value
6 10 ( 1 + 20%) 8.33
7 10 * 1.1 = 11 (1 + 20%)² 7.64
8 10 * 1.1² = 12.1 (1 + 20%)³ 7.00
9 10 * 1.1³ = 13.31 (1 + 20%)⁴ 6.42
10 10 * 1.1⁴ = 14.641 (1 + 20%)⁵ 5.88
Total 35.27
Terminal value at year 10 = Next dividend / (Discount rate - growth)
= (14.641 * 1.05) / (20% - 5%)
= $102.487
Present value = 102.487/ (1 + 20%)⁵ = $41.187
Price of stock = 41.187 + 35.27
= $76.46
) If product Light is processed further and sold, what would be the financial advantage (disadvantage) for Bodbbm177 Corporation compared with sale in its unprocessed form directly after the split-off point?
Answer: Disadvantage of -$5,800
Explanation:
Incremental sales revenue if processed further and sold = (12 - 10) * 2,200
= $4,400
Additional cost = $10,200
Financial Advantage(Disadvantage) = Incremental revenue - Additional cost
= 4,400 - 10,200
= -$5,800
A present value of $2600 is invested in an account with an annual interest rate of 4.1% . Determine the minimum amount of time required for the present value to triple, assuming the interest is compounded monthly. The minimum amount of time required is:
Answer:
The minimum amount of time required is:
26.82 years.
Explanation:
Present value = $2,600
Future value = $7,800 ($2,600 * 3)
Annual interest rate = 4.1%
Monthly interest rate = 4.1%/12 = 0.342%
$2,600 will need to be invested for 321.781 (26.82 years) periods to reach the future value of $7,800.00.
FV (Future Value) $7,800.00
PV (Present Value) $2,600.00
N (Number of Periods) 321.781
I/Y (Interest Rate) 0.342%
PMT (Periodic Payment) $0.00
Starting Investment $2,600.00
Total Principal $2,600.00
Total Interest $5,200.00
Marsha is 23 years old and single. She cannot be claimed as a dependent by another taxpayer. Marsha earned wages of $18,500 and had $1,500 of federal income tax withholding in tax year 2020. Marsha gave birth to Shelby on November 10, 2020. Marsha paid all the cost of keeping up a home and support for Shelby. Shelby and Marsha are U.S. citizens and have valid Social Security numbers. Marsha filed Single with no dependents on her 2019 tax return and received a $1,200 Economic Impact Payment in May 2020. 3. Marsha is not required to file a return, but should file a return to claim a refund of her federal income tax withholding. True False
Answer:
a. Marsha is required to file a tax return.
Explanation:
Since in the question it is mentioned that Marsha who is 23 years old and single she earned $18,500 wages and federal income tax of $1,500 also Shelby and Marsha are U.S citizens
So as per the given situation she needs to file a tax return
Hence, the correct option is a
And, the same is to be considered
.Universal Containers users a Hybrid Sharing model where Accounts and Contacts are Read Only and Opportunities and Cases are private. Account Executives own all the Accounts. Some Contacts are owned by AEs, and other Contacts are owned by support reps. How should a system admin ensure the AEs can edit all the Contacts associated with their accounts, no matter who owns the Contacts
Answer: Select the edit all associated contacts option for the AE Role in the Role Hierarchy.
Explanation:
The individual should select edit for all the associated contacts option for the AE role in the role hierarchy
Computer equipment was acquired at the beginning of the year at a cost of $65,000 that has an estimated residual value of $3,800 and an estimated useful life of 8 years. (1)Determine the (a) depreciable cost for straight rate, (b) straight-line rate, and (c) annual depreciation for the straight line rate (d) double declining balance depreciation amount for 1st year (2) Journalize the sale of the equipment at the end of the 4th year for $20,000 cash, if using the straight line rate.
Answer:
a) Depreciable cost = $61,200
b) Straight-line rate = 12.5%
c) Annual depreciation for the straight-line rate is:
$7,650.
d) The double-declining balance depreciation amount for the 1st year is:
$15,300.
e) Journal Entry of sale of equipment at the end of the 4th year for $20,000, using the straight-line rate:
Debit Sale of Equipment $65,000
Credit Equipment $65,000
To record the transfer of the equipment account.
Debit Accumulated Depreciation $30,600
Credit Sale of Equipment $30,600
To record the transfer of accumulated depreciation to the account.
Debit Cash Account $20,000
Credit Sale of Equipment $20,000
To record the cash received from the sale.
Debit Profit and Loss Account $14,400
Credit Sales of Equipment $14,400
To record the loss on sale of equipment.
Explanation:
a) Data and Calculations:
Cost of computer equipment = $65,000
Estimated residual value = 3,800
Depreciable value = $61,200
Estimated useful life = 8 years
Annual depreciation expense = $7,650 ($61,200/8) or $61,200 * 12.5%
Depreciable cost = $61,200 ($65,000 - $3,800)
Straight-line rate = 12.5% (100%/8)
Double-declining rate = 12.5% x 2 = 25%
Depreciation amount for the 1st year = $15,300 ($61,200 * 25%)
Book value of asset at the end of the 4th year, straight-line method:
Cost of equipment = $65,000
Accumulated Depreciation = $30,600 ($7,650 * 4)
Book value = $34,400
Sales proceed = $20,000
Loss on sale of asset = $14,400 ($34,400 - $20,000)
An analyst gathers the following information about Meyer, Inc.: Meyer has 1,000 shares of 8% cumulative preferred stock outstanding, with a par value of $100 and liquidation value of $110. Meyer has 20,000 shares of common stock outstanding, with a par value of $20. Meyer had retained earnings at the beginning of the year of $5,000,000. Net income for the year was $70,000. This year, for the first time in its history, Meyer paid no dividends on preferred or common stock. a. Calculate the total book value of Meyer's common stock. b. What is the book value per share of Meyer's common stock
Answer and Explanation:
The computation is shown below
a. Total book value is
= Equity par value + retained earnings + net income
= 20,000 shares × $20 + $5,000,000 + $70,000
= $5,470,000
b. The book value per share is
= Equity book value ÷ number of shares
= $5,470,000 ÷ 20,000shares
= $273.50
Hence, the total book value and book value per share is $5,470,000 and $273.50 respectively
1. The capital structure weights used in computing the weighted average cost of capital: A. are based on the book values of total debt and total equity. B. are based on the market values of total debt and total equity. C. are restricted to the firm's debt and common stock only D. remain constant over time unless the firm issues new securities.
An asset group is being evaluated for an impairment loss. The following financial information is available for the asset group: Carrying value $100,000,000 Sum of the undiscounted cash flows $95,000,000 Fair value $80,000,000 What amount of impairment loss, if any, should be recognized
Answer:
The amount of the impairment loss that should be recognized is:
$20,000.
Explanation:
a) Data and Calculations:
Undiscounted cash flows = $95,000
Carrying value = $100,000
Fair value = 80,000
Impairment loss = $20,000
b) Impairment loss for the asset group is the difference between the fair value and the carrying value. It is recognized when the fair value declines from the carrying value. This implies that the calculation to determine the impairment loss is achieved by deducting the fair value from the carrying value.
Coronado Inc. has $520,640 to invest. The company is trying to decide between two alternative uses of the funds. One alternative provides $69,086 at the end of each year for 12 years, and the other is to receive a single lump-sum payment of $1,633,990 at the end of the 12 years. Which alternative should Coronado select
Answer:
None of the alternative should be selected by Coronado Inc.
Explanation:
This can be determined by comparing the net present value of the 2 alternative.
The fisrt thing to do is to calculate the simple interest to be used as follows:
Simple rate of return = Annual return / Investment cost = $69,086 / $520,640 = 0.1327, or 13.27%
Step 1: Calculation of the net present value of alternative that provides $69,086 at the end of each year for 12 years
We have to first calculate the present value using the formula for calculating the present of an ordinary annuity as follows:
PV$69,086 = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
PV$69,086 = Present value of the annual cash flow of $69,086 = ?
P = Annual cash inflow = $69,086
r = Simple rate of return = 0.1327, or 13.27%
n = Number of years = 12
Substitute the values into equation (1) to have:
PV$69,086 = $69,086 * ((1 - (1 / (1 + 0.1327))^12) / 0.1327) = $403,899.27
The net present value can now be calculated as follows:
NPV$69,086 = PV$69,086 - Investment cost ............... (2)
Where;
NPV$69,086 = Net present value of alternative that provides $69,086 at the end of each year for 12 years = ?
PV$69,086 = Present value of the annual cash flow of $69,086 = $440,303.13
Substitute the values into equation (2) to have:
NPV$69,086 = $ 403,899.27 - $520,640
NPV$69,086 = -116,740.73
Step 2: Calculation of the net present value of alternative that pays a single lump-sum payment of $1,633,990 at the end of the 12 years
We have to first calculate the present value using the present value formula as follows:
PV$1,633,990 = $1,633,990 / (1 + r)^n ............. (3)
Where;
PV$1,633,990 = present value of $1,633,990 = ?
r = Simple rate of return = 0.1327, or 13.27%
n = Number of years = 12
Substitute the values into equation (3) to have:
PV$1,633,990 = $1,633,990 / (1 + 0.1327)^12 = $366,328.40
The net present value can now be calculated as follows:
NPV$1,633,990 = PV$1,633,990 - Investment cost ............... (4)
Where;
NPV$1,633,990 = net present value of alternative that pays a single lump-sum payment of $1,633,990 at the end of the 12 years = ?
Substitute the values into equation (4) to have:
NPV$1,633,990 = PV$1,633,990 - Investment cost = $366,328.40 - $520,640 = -$154,311.60
Conclusion
Since the NPVs of the two alternative are negative, none of the alternative should be selected by Coronado Inc.
Private investment during a year includes Group of answer choices spending on plant and equipment plus capital formation the value of inventories plus the values of stocks and bonds spending on plant and equipment plus government spending plus household spending on stocks and bonds stocks and bonds purchased by firms spending on plant and equipment, new housing construction, and changes in inventories
Answer:
spending on plant and equipment, new housing construction, and changes in inventories
Explanation:
A private investment can be defined as funds used by business firms to purchase capital assets such as plants and equipments, new office building and inventories required for the smooth running of the business and are typically expected to generate revenues in the future (cash-flow) and appreciate in value.
Private investment during a year includes spending on plant and equipment, new housing construction, and changes in inventories.
Some business owners may decide to make more investment in their business on an annual (yearly) basis or perennially depending on the type of business and their level of capital expenditure.
The government of Japan sets a limit on the amount of rice that can be imported from the United States. This is Group of answer choices a quota. a dumping duty. an antidumping duty. a tariff.
Answer:
a quota
Explanation:
The quota is the type of the restriction made in the trade where the physical limit is set on the quantity of the products or goods that could be imported in a country under a prescribed period of time. It benefits the producers of goods
Therefore as per the given situation, since the Japan government sets a limit for the rice amount that can be imported from the United states so this represents the quota
Therefore the first option is correct
Dean has earned $75,000 annually for the past seven years working as an architect for WCC Incorporated Under WCC's defined benefit plan (which uses a seven-year graded vesting schedule) employees earn a benefit equal to 4.5 percent of the average of their three highest annual salaries for every full year of service with WCC. Dean has worked for seven full years for WCC and his vesting percentage is 99 percent. What is Dean's vested benefit (or annual retirement benefit he has earned so far)
Answer:
$23,388.75
Explanation:
Calculation for Dean's vested benefit
Dean's vested benefit =$75,000 x (4.5% x 7 years) x 99%
Dean's vested benefit =$75,000×0.315×99%
Dean's vested benefit =$23,388.75
Therefore Dean's vested benefit will be $23,388.75
Bezos moved to Seattle, Washington because _________ and ______
a. no state taxes on retail purchases
b. of federal funding of his new project
c. it was near IBM
d. take advantage of the software talent
Answer:
a
Explanation:
air transportation results in lower inventory holding costs.” True or false?
Answer:
I think its false
If consumers view the output of any firm in a market to be identical to the output of any other firm in the market, the demand curve for the output of any given firm A. will be identical to the market demand curve. B. will be horizontal. C. will be vertical. D. cannot be determined from the information given.
Answer:
B. will be horizontal.
Explanation:
In the case when the firm is in the perfect competition market so here the demand curve would be horizontal as because of the same product and also the transaction cost is lesser that means if someone rise the prices so the producer would lost all its revenue
Therefore as per the given situation, the option b is correct
In the United States, bank deposits up to a certain amount are insured by the FDIC.
True or false
Answer:
true :)
Explanation:
On January 1, 2019, Woodstock, Inc. purchased a machine costing $30,900. Woodstock also paid $1,700 for transportation and installation. The expected useful life of the machine is 5 years and the residual value is $4,600. How much is the annual depreciation expense, assuming use of the straight-line depreciation method
Answer:
Annual depreciation= $5,600
Explanation:
Giving the following information:
Total Purchase price= 30,900 + 1,700= $32,600
Useful life= 5 years
Residual value= $4,600
To calculate the depreciation expense under the straight-line method, we need to use the following formula:
Annual depreciation= (Total Purchase price - salvage value)/estimated life (years)
Annual depreciation= (32,600 - 4,600) / 5
Annual depreciation= $5,600
Suppose the Federal Reserve increases the amount of reserves by $100 million and the total money supply increases by $500 million. Instructions: Enter your answers as a whole number. a. What is the money multiplier
Answer:
the money multiplier is 5
Explanation:
The computation of the money multiplier is as follows:
As we know that
Increase in money supply = Increase in reserves × Money multiplier
Now after rearranged it the following formula is
Money multiplier = Increase in money supply ÷ Increase in reserves
= $500 million ÷ $100 million
= 5
Hence, the money multiplier is 5
A capital budgeting method that takes into consideration the time value of money is the cash payback technique. return on stockholders' equity method. internal rate of return method. annual rate of return method.
Answer:
Internal rate of return method
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
Accounting rate of return = Average net income / Average book value
Average book value = (cost of equipment - salvage value) / 2
Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash.
Hardwoods, a timber supplying company, contracted with a furniture manufacturer, Taylor Furniture. Hardwoods owned a large plot of land where it grew oak and beech trees. Taylor had contracted with Hardwoods to buy one ton of each type of lumber grown by Hardwoods each month at a discounted price for the next five years. However, during the second year of the contract, and tornado Hardwoods farmland, and demolished its entire supply of wood. Taylor having no other supplier sued Hardwoods for breach of contract. Hardwoods argued that their contract had been legally discharged as soon as the tornado struck because at that point it was impossible for Hardwoods to supply lumber to Taylor. The court ruled in favor of Hardwoods. But what if the facts of the case were different
Answer:
the options are missing, so I looked for a similar question:
Instead of a tornado’s striking Hardwoods’ land, the state in which Hardwoods operates passes a law making it illegal for any lumber companies to cut down trees for the purposes of selling their wood. This environmental measure causes Hardwoods to go out of business. Instead of demanding Oak and Beech wood grown specifically on Hardwoods’ land, Taylor requests shipments of Oak and Beech wood from Hardwoods, and specifies in the contract that if Hardwoods cannot supply the wood, then Hardwoods should obtain the requested wood from another lumber supplier. Instead of a tornado’s striking Hardwoods’ tree farm, a wildfire burns all of Hardwoods’ trees. After the tornado, Hardwoods and Taylor Furniture agree to a novation, whereby a competing company, Oakempire, assumes the duties of Hardwoods stated in the original contract.
The answers are:
2. Instead of demanding Oak and Beech wood grown specifically on Hardwoods’ land, Taylor requests shipments of Oak and Beech wood from Hardwoods, and specifies in the contract that if Hardwoods cannot supply the wood, then Hardwoods should obtain the requested wood from another lumber supplier.
4. After the tornado, Hardwoods and Taylor Furniture agree to a novation, whereby a competing company, Oakempire, assumes the duties of Hardwoods stated in the original contract.
Explanation:
In common law, a tornado or any other type of natural disaster is considered an Act of God. A company cannot be held liable for such events, and if a contract is breached because of it, there is no legal responsibility (option 3 is another type of Act of God)
Also, if the law or existing regulation changes, and that change makes it impossible for a party to fulfill their obligations, they are not liable for breaching the contract (option 1).
Assuming a FICA tax rate of 8% on the first $100,000 in wages, and a federal income tax rate of 20% on all wages, what would be an employee's net pay for the year if he earned $120,000 for the year?
Answer:
the answer is c
Explanation:
On January 1, 2020, Marvel Company purchased an investment in Stark Industries for $5 million, representing 35% of the book value of Stark Industries. During the year, Stark reported net income of $1,200,000 and pays cash dividends of $100,000. At the end of the year, the fair value of Marvel’s investment is $5.4 million. Required At what amount is the investment reported on Marvel’s balance sheet at year-end? What amount of income from investments does Marvel report? Prepare journal entries to record the transactions for Marvel Company.
Answer:
1. Investment at beginning $5,000,000
Add: Net Income (1200000*35%) $420,000
Less: Dividend (100000*35%) $35,000
Investment at year end $5,385,000
2. Amount of Income from Investment = $1,200,000*35% = $420,000
3. Journal entries to record transactions
Particulars Debit Credit
Investment in Marvel Co. $420,000
Equity Income $420,000
(Recording receipt of net income)
Cash $35,000
Investment in Marvel Co $35,000
( Recording receipt of dividend)
began a new development project in 2020. The project reached technological feasibility on June 30, 2021, and was available for release to customers at the beginning of 2022. Development costs incurred prior to June 30, 2021, were $3,210,000, and costs incurred from June 30 to the product release date were $1,410,000. The 2022 revenues from the sale of the new software were $4,008,000, and the company anticipates additional revenues of $6,012,000. The economic life of the software is estimated at four years. Amortization of the software development costs for the year 2022 would be:
Answer:
$352,500
Explanation:
Development costs incurred prior to June 30, 2021 must be expensed, they cannot be capitalized.
Capitalized R&D costs = $1,410,000
External use software (software intended to be sold to third parties) should be amortized using straight line amortization (4 years in this case):
amortization expense = $1,410,000 / 4 = $352,500
Yanita Company, an IFRS reporting firm, has three bank accounts. The respective account balances are as follows: Account 1: $50,000; Account 2: $70,000; Account 3: $(10,000). Consistent with IFRS, cash and cash equivalents are equal to:
Answer:
Consistent with IFRS, cash and cash equivalents are equal to:
$110,000.
Explanation:
a) Data and Calculations:
Account 1: $50,000
Account 2: $70,000
Account 3: $(10,000)
Total $110,000
b) Yanita's cash and cash equivalents are the assets that are cash or can be converted into cash immediately, which include bank accounts and marketable securities such as commercial paper and short-term government bonds. Under IFRS, cash and cash equivalents also include bank overdrafts, which are recorded under current liabilities on the Balance Sheet. However, under US GAAP, bank overdrafts are not treated as part of the cash and cash equivalents. This implies that under US GAAP, Yanita's cash and cash equivalents would be totaling $120,000.
Hull Company reported the following income statement information for the current year: Sales $ 413,000 Cost of goods sold: Beginning inventory $ 136,500 Cost of goods purchased 276,000 Cost of goods available for sale 412,500 Ending inventory 147,000 Cost of goods sold 265,500 Gross profit $ 147,500 The beginning inventory balance is correct. However, the ending inventory figure was overstated by $23,000. Given this information, the correct gross profit would be:
Answer: $124,500
Explanation:
If Ending Inventory was overstated by $23,000, this means that Cost of Goods was understated by $23,000.
Actual Cost of Goods sold = 265,500 + 23,000
= $288,500
Gross profit = Sales - Cost of goods
= 413,000 - 288,000
= $124,500
