Charles Underwood Agency Inc. has an expected net operating profit after taxes, EBIT(1 – T), of $14,200 million in the coming year. In addition, the firm is expected to have net capital expenditures of $2,130 million, and net operating working capital (NOWC) is expected to increase by $35 million. How much free cash flow (FCF) is Charles Underwood Agency Inc. expected to generate over the next year?

Answers

Answer 1

Answer:

The free cash flow (FCF) is Charles Underwood Agency Inc. expected to generate over the next year is $12,035 million

Explanation:

According to the given data we have the following:

net operating profit after taxes=$14,200 million

net capital expenditures= $2,130 million

net operating working capital = $35 million.

Therefore, free cash flow (FCF) is Charles Underwood Agency Inc. expected to generate over the next year would be calculated as follows:

FCF= net operating profit after taxes-net capital expenditures- net operating working capital

FCF=$14,200 million-$2,130 million- $35 million

FCD=$12,035 million


Related Questions

Kat Outfitting currently has $22,500 in cash. The company owes $49,500 to suppliers for merchandise and $52,500 to the bank for a long-term loan. Customers owe the company $41,000 for their purchases. The inventory has a book value of $76,800 and an estimated market value of $72,000. If the store compiled a balance sheet as of today, what would be the book value of the current assets?

Answers

Answer:

The book value of the current assets is $140,300

Explanation:

Cash = $22,500

Amount owed by company = $49,500

Amount Owed by Customers = $41,000

Book Value of Inventory  = $76,800

Estimated market value = $72,000

Book Value of Current Assets = Cash + Amount Owed by Customers + Book Value of Inventory

Book Value of Current Assets = $22,500 + $41,000 + $76,800

Book Value of Current Assets = $140,300

Two different forecasting techniques (F1 and F2) were used to forecast demand for cases of bottled water. Actual demand and the two sets of forecasts are as follows:



PREDICTED DEMAND

Period Demand F1 F2
1 68 63 62
2 75 66 61
3 70 73 70
4 74 65 71
5 69 71 73
6 72 69 73
7 80 70 76
8 78 72 80


a.
Compute MAD for each set of forecasts. Given your results, which forecast appears to be more accurate? (Round your answers to 2 decimal place.)



MAD F1
MAD F2


(Click to select)F1F2None appears to be more accurate.


b.
Compute the MSE for each set of forecasts. Given your results, which forecast appears to be more accurate? (Round your answers to 2 decimal places.)



MSE F1
MSE F2


(Click to select)F1F2None appears to be more accurate.


c.
In practice, either MAD or MSE would be employed to compute forecast errors. What factors might lead a manager to choose one rather than the other?



Either one might already be in use, familiar to users, and have past values for comparison. If (Click to select)control chartstracking signals are used, MSE would be natural; if (Click to select)tracking signalscontrol charts are used, MAD would be more natural.



d.
Compute MAPE for each data set. Which forecast appears to be more accurate? (Round your intermediate calculations to 2 decimal places and and final answers to 2 decimal places.)



MAPE F1
MAPE F2

Answers

Answer:

a.  Compute MAD for each set of forecasts. Given your results, which forecast appears to be more accurate?

I used an excel spreadsheet (attached as MAD).    

F1 seems to be more accurate.

b.  Compute the MSE for each set of forecasts.

I used an excel spreadsheet (attached as MSE).

F2 seems to be more accurate.

c.  In practice, either MAD or MSE would be employed to compute forecast errors. What factors might lead a manager to choose one rather than the other?

Either one might already be in use, familiar to users, and have past values for comparison.

If control charts are used, MSE would be natural; if tracking signals are used, MAD would be more natural.

d.  Compute MAPE for each data set. Which forecast appears to be more accurate?

I used an excel spreadsheet (attached as MAPE).

F2 seems to be more accurate.

Explanation:

Period Demand F1 F2

1 68 63 62

2 75 66 61

3 70 73 70

4 74 65 71

5 69 71 73

6 72 69 73

7 80 70 76

8 78 72 80

(LaVilla) LaVilla is a village in the Italian Alps. Given its enormous popularity among
Swiss, German, Austrian, and Italian skiers, all of its beds are always booked in the winter
season and there are, on average, 1,200 skiers in the village. On average, skiers stay in
LaVilla for 10 days.
a. How many new skiers are arriving—on average—in LaVilla every day?
b. A study done by the largest hotel in the village has shown that skiers spend on average $50 per person on the first day and $30 per person on each additional day in local
restaurants. The study also forecasts that—due to increased hotel prices—the average
length of stay for the 2003/2004 season will be reduced to five days. What will be the
percentage change in revenues of local restaurants compared to last year (when skiers
still stayed for 10 days)? Assume that hotels continue to be fully booked!
Q2.6 (Highway) While driving home for the holidays, you can’t seem to get Little’s Law out of

Answers

Answer:

  a) 120 skiers per day

  b) 6.25% increase in revenue

Explanation:

a) If the average skier stays 10 days, the average turnover is 1/10 of the skiers per day, or 1200/10 = 120 skiers per day.

__

b) For a stay of n days, the average skier spends ...

  50 +(n-1)30 = 20 +30n

and the average spending per day is ...

  (20 +30n)/n = (20/n) +30

So, for a 10-day stay, the average skier spends in restaurants ...

  20/10 +30 = 32 . . . . per day

And for a 5-day stay, the average skier will spend ...

  20/5 +30 = 34 . . . . per day

The change in restaurant revenue is expected to be ...

  (34 -32)/32 × 100% = 2/32 × 100% = 6.25%

Restaurant revenues will be 6.25% higher compared to last year.

The owner of a downtown parking lot has employed a civil engineering consulting frim to advise him on the economic feasibility of constructing an office building on the site. bill samuels, a newly hired civil engineer, has been assigned to make the analysis. he has assembled the following data
alternative total investment total net annual revenue
sell parking lot 0 0
keep parking lot 200,000 22,000
build 1 story building 400,000 60,000
build 2 story building 555,000 72,000
build 3 story building 750,000 100,000
build 4 story building 875,500 105,000
build 5 story building 1,000,000 120,000
The analysis period is be 15 years. for all alternatives, the property has an estimated resale(salvage) value at the end of 15 years equal to the present total investement.
(a) constuct a choice table for interest rate from 0% to 100%
(b) if the MARRR is 10%, what recommendation should bill make?

Answers

Answer: The answer has been attached

Explanation:

Base on the MARR been 10%, I'll recommend 3 storey building.

Further explanation has been attached. In the explanation, note that:

I = A/P e.g.

Interest rate for build 1 storey building:

= 60/400 × 100

= 15%

Ebbers Corporation overstated its ending inventory balance by $7,000 in the current year. What impact will this error have on cost of goods sold and gross profit in the current year and following year?

Answers

Answer:

ZOOM

Explanation:

The two independent cases are listed below: Case A Case B Year 2 Year 1 Year 2 Year 1 Sales Revenue $11,000 $9,000 $21,000 $18,000 Cost of Goods Sold 6,000 5,500 12,000 11,000 Gross Profit 5,000 3,500 9,000 7,000 Depreciation Expense 1,000 1,000 1,500 1,500 Salaries and Wages Expense 2,500 2,000 5,000 5,000 Net Income 1,500 500 2,500 500 Accounts Receivable 300 400 750 600 Inventory 750 500 730 800 Accounts Payable 800 700 800 850 Salaries and Wages Payable 1,000 1,200 200 250 Show the operating activities section of the statement of cash flows for year 2 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

Answers

Answer:

Net cash from operating activities are $2,250 for Case A and $3,820 for Case B.

Explanation:

The indirect method of presenting the cash flow statement is a method that starts with net income or loss, and then with additions to or subtractions from of revenue and expense items that are non cash to obtain cash flow from operating activities.

For this question, this can be presented as follows:

Details                                                    Case A ($)          Case B ($)

Net Income                                                    1,500                2,500

Adjustments:

Depreciation Expense                                  1,000                 1,500

Changes in Operating assets & liab.:

(Increase) Decrease in Acct receivables       100                 –150

Decrease (Increase) in Inventory                 –250                    70

Increase (Decrease) in Accounts payable      100                 –50

Increase (Decrease) in Sal. & Wag. Paybl.   –200                 –50  

Net cash from operating activities            2,250               3,820

The Net cash-flow from the operating activities for Case A is $2,250.

The Net cash-flow from the operating activities for Case B is $3,820.

Here, we are preparing the  "Year 2" operating activities section of the cash flows statement using the indirect method

                 Statememt of Cash flow (Operating activities)

                                                                                 Case A     Case B

Particulars                                                               Amount    Amount

Net Income                                                              $1,500     $2,500

Adjustments for Case A & B

Depreciation Expense                                            $1,000     $1,500

Changes in operating assets

& liabilities of Case A & B

(Increase) / Decrease in Account receivables       $100       -$150

Decrease / (Increase) in Inventory                         -$250       $70

Increase / (Decrease) in Accounts payable            $100       -$50

Increase / (Decrease) in Sal. & Wage Payable       $200      -$50

Net cash from operating activities                       $2,250    $3,820

See similar solution here

brainly.com/question/18454410

Adjustment for Unearned Revenue
On June 1, 20Y2, Herbal Co. received $41,250 for the rent of land for 12 months.
Journalize the adjusting entry required for unearned rent on December 31, 20Y2.
Set up an Unearned Fees T-account. Recall that the unearned revenue account is decreased (debited) for the amount of the revenue that has been earned, and the related revenue account is increased (credited). The balance before adjustment will be the normal balance for the unearned liability account. The number given for the end of the year is to be the new balance after adjusting out the revenue earned. What amount is this difference between the pre-adjustment balance and the post-adjustment balance?

Answers

Answer:

oshe mush have been out of her head

Explanation:

0she lost her dog in the microwave

Use the following information to answer the question: There are three firms in an economy: X, Y, and Z. Firm X buys $400 worth of goods from Firm Y, and $200 worth of goods from Firm Z to produce 250 units of output at $3 per unit. Firm Y buys $250 worth of goods from Firm X and $250 worth of goods from Firm Z to produce 250 units of output at $4 per unit. Firm Z buys $100 worth of goods from Firm X and $500 worth of goods from Firm Y to produce 500 units at $2 per unit. Given this information, using the Value Added approach to eliminating intermediate goods and services (in order to avoid double-counting), what is the economy's GDP

Answers

Answer:

$1,050

Explanation:

Value Added Approach to calculating the GDP avoids double counting by adding only the value addition of all firms in an economy to obtain the GDP. Value addition for each firm can be calculated by deducting the intermediate purchase of each firm from its intermediate sales as follows:

Firm X value addition = ($250 * 3) - $400 - $200 = $750 - $600 = $150

Firm Y value addition = ($250 * 4) - $250 - $250 = $1,000 - $500 = $500

Firm Z value addition = (500 * 2) - $100 - $500 = $1,000 - $600 = $400

Therefore, we have:

The economy's GDP = $150 + $500 + $400 = $1,050

A company currently pays a dividend of $3.4 per share (D0 = $3.4). It is estimated that the company's dividend will grow at a rate of 17% per year for the next 2 years, and then at a constant rate of 5% thereafter. The company's stock has a beta of 1.3, the risk-free rate is 6.5%, and the market risk premium is 1.5%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent.

Answers

Answer:

Current price of stock =$128.06

Explanation:

The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.

The model is given as

P = D× g/(r-g)

P- price, D- dividend payable in year 1, r -cost of equity, g - growth rate in dividend

Cost of equity

The cost of equity can be calculated using the Capital Asset Model (CAPM).

Ke= Rf +β(Rm-Rf)  

Ke =? , Rf- 6.5%, (Rm-Rf)- 1.5, β- 1.3

Ke=6.5% + 1.3× (1.5)= 8.45%

Stock price

PV of dividend in year 1 = 3.4× 1.17× 1.0845^(-1)=3.668

PV of dividend in year 2 =  3.4× 1.17^2× 1.0845^(-2) = 3.9572

PV of dividend in year 3

This will be done in two(2) steps:

Step 1- PV in year 2 terms

3.4× 1.17^2× 1.05/(0.0845- 0.05)= 141.651

Step 2- PV in year 0

141.6513913× 1.0845^(-2)= 120.4375

Current piece of stock =  3.668  + 3.957  + 120.4375 = 128.062

Current price of stock =$128.062

   

Identify what type of unemployment each of the individuals faces. James is an architect who has been laid off owing to a slump in the demand for property. He feels he will have to wait until the economy picks up before he can get a new job. James is facing

Answers

Answer:

cyclical unemployment

Explanation:

The situation when the overall demand for goods and services cannot support full employment in an economy, it results in cyclical unemployment. It takes place during periods of slow economic growth.

In the given question,

as James will have to wait until the economy picks up before he can get a new job, he is facing cyclical unemployment.

The Digby company will sell 100 units (x1000) of capacity from their Daft product line. Each unit of capacity is worth $6 plus $4 per automation rating. The Digby company will sell the capacity for 35% off. How much do they receive when the capacity is sold

Answers

Answer: $2,210,000

Explanation:

The company will sell at full cost per Automation rating which is not provided.

The Comp-XM Inquirer shows this Automation rating to be 7.

The Total Cost per Automation rating is,

= $6 + ($4 * 7)

= $34

Selling 100,000 units gives

= 100,000 * 34

= $3,400,000

Selling at 35% off.

= 3,400,000 * ( 1 - 0.35)

= $2,210,000

Jasper and Crewella Dahvill were married in year 0. They filed joint tax returns in years 1 and 2. In year 3, their relationship was strained and Jasper insisted on filing a separate tax return. In year 4, the couple divorced. Both Jasper and Crewella filed single tax returns in year 4. In year 5, the IRS audited the couple’s joint year 2 tax return and each spouse’s separate year 3 tax returns. The IRS determined that the year 2 joint return and Crewella’s separate year 3 tax return understated Crewella’s self-employment income, causing the joint return year 2 tax liability to be understated by $12,700 and Crewella’s year 3 separate return tax liability to be understated by $7,350. The IRS also assessed penalties and interest on both of these tax returns. Try as it might, the IRS has not been able to locate Crewella, but they have been able to find Jasper. (Leave no cells blank - be certain to enter "0" wherever required.)
a. What amount of tax can the IRS require Jasper to pay for the Dahvill’s year 2 joint return?
Amount of Tax:__________________
b. What amount of tax can the IRS require Jasper to pay for Crewella’s year 3 separate tax return?
Amount of Tax:__________________

Answers

Answer: a. $12,700

b. $0

Explanation:

a. As Jasper and Crewella Dahvill filed joint tax returns in Year 2, both of them are joint and severally liable for any errors that may arise in the filing. The IRS could not find Crewella but they could find Jasper and as he is liable as well, he will have to pay the full amount that Crewella understated their tax liability by.

b. In year 3, Jasper and Crewella Dahvill had a strained relationship and filed their returns separately. As a result Jasper is not liable for any errors that will arise from Crewella's tax returns filing including the understatement of tax liability.

Homestead Jeans Co. has an annual plant capacity of 67,000 units, and current production is 45,700 units. Monthly fixed costs are $54,400, and variable costs are $30 per unit. The present selling price is $40 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 19,600 units of the product at $33 each. Dawkins Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Homestead Jeans Co.
Required:
a. Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Dawkins order. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required.
b. Briefly explain the reason why accepting this additional business will increase operating income.
c. What is the minimum price per unit that would produce a positive contribution margin?
a. Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Dawkins order. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required.

Answers

Answer:

Homestead Jeans Co.

a) Differential Analysis dated November 12

Options         Reject (Alternative 1)     Special Order   Accept (Alternative 2)

Units sold                45,700                        19,600                  65,300

Revenue                $1,828,000              $646,800              $2,474,800

Variable Cost          -1,371,000                -588,000                -1959,000

Contribution           $457,000                  $58,800                 $515,800

Fixed Costs              652,800                   $0                           652,800

Net Income/(Loss) -$195,800                 $58,800                 -$137,000

b) Accepting this order will reduce operating loss from $195,800 to $137,000, making a difference of $58,800.  The reason is that the special order will make a contribution towards offsetting the fixed cost with a sum of $58,800.

c) Minimum price per unit to produce positive contribution margin:

The contribution margin per unit = Selling price minus variable cost per unit = $40 - $30 = $10 per unit.

To produce positive contribution margin, selling price must be more than variable cost.  Selling price will be at least $31.

Therefore, the minimum price per unit to produce positive contribution is $31.

Explanation:

a) In differential analysis, only relevant costs are considered.  Fixed costs are regarded as sunk and therefore irrelevant in making any differential decision.

b) The revenue is a function of selling price and quantity sold.  While the variable costs equal units sold multiplied by the unit variable cost.

Investment Management Inc. (IMI) uses the capital market line to make asset allocation recommendations. IMI derives the
following forecasts:

• Expected return on the market portfolio: 12%.
• Standard deviation on the market portfolio: 20%.
• Risk-free rate: 5%.

Samuel Johnson seeks 'Ml's advice for a portfolio asset allocation. Johnson informs IMI that he wants the standard deviation of the portfolio to equal half of the standard deviation for the market portfolio. Using the capital market line, what expected return can IMI provide subject to Johnson's risk constraint?

Answers

Answer:

The expected return that IMI can provide subject to Johnson's risk constraint is 8.5%

Explanation:

Capital Market Line (CML)

Expected return on the market portfolio, E([tex]r_m[/tex]) = 12 %

Standard deviation on the market portfolio, σ[tex]_p[/tex] = 20%

Risk-free rate, [tex]r_f[/tex] = 5%

E([tex]r_c[/tex]) =  [tex]r_f[/tex] + [  E([tex]r_p[/tex])  - [tex]r_f[/tex] ] × ( σ[tex]_c[/tex] ÷ σ[tex]_p[/tex])

         = 0.05 + [ 0.12 - 0.05] × (0.10 ÷ 0.20)

= 8.5%

Indicate whether each of the following statements is true or faise Statement 1. The government can raise revenue by taxing the sellers without creating deadweight loss when the demand for the goods being taxed is perfectly inelastic 2. A tax that raises no revenue for the government cannot have any deadweight loss.

Answers

Answer and Explanation:

The indication of the following statement regarding true or false is

For Statement 1

This given statement is true as the demand is perfectly inelastic so there is no deadweight loss because quantity does not change or not have any impact

Therefore,  in this case, the government only raise revenue but at the same time when there is an increase in elasticity so there is a change in deadweight loss

For Statement 2

This given statement is false as if no revenue is there, there will be deadweight loss

At the end of 2021, Larkspur Co. has accounts receivable of $653,700 and an allowance for doubtful accounts of $24,200. On January 24, 2022, it is learned that the company’s receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $4,245.
A) Prepare the journal entry to record the write-off.
Credit
Enter an account title Enter a debit amount Enter a credit amount
What is the cash realizable value of the accounts receivable before the write-off and after the write-off?
Before Write-Off After Write-Off
Cash realizable value $ $

Answers

Answer:

January 24, 2022, Madonna Inc.'c account is written off

Dr Allowance for doubtful accounts 4,245

    Cr Accounts receivable 4,245

the cash realizable value of the accounts receivable account:

before the write off = $653,700 - $24,200 = $629,500after the write off = ($653,700 - $4,245) - ($24,300 - $4,245) = $629,500

The net balance of the account does not change because the allowance for doubtful accounts is a contra asset account that already decreased the accounts receivable balance.  

The annual fixed costs for a plant are $100,000, and the variable costs are $140,000 at 70% utilization of available capacity, with net sales of $280,000. What is the breakeven point in units of production if the selling price per unit is $40

Answers

Answer:

With the production 5000 units the plant will achieve it's break even point

Explanation:

Solution

The break even points is the point in a business when the total revenue is exactly the same to the equal expenditure.

The formula is given below:

D' = Cy/(p-cy)

Here

D' =the demand at break even point

p = the selling price

cy= the variable costs per unit

Cy = the total fixed cost

Thus

The total cost of the plant = $100,000

The variable costs = $140,000

The net sales = $280,000

The selling price per unit = $40

The total no units sold per year is given as :

Annual sale (units) = Total sales/Sale per unit

Now,

By the method of substitution we have the following.

Annual sale (units)  = $280,000/40

=7000 units/year

The formula for  variable cost  per unit cy is

cy = Cy/Annual sale (units)

Now,

We substitute in the above equation the value of Cy as $140,000 and annual sale as 7000 units/per year

cy = $140,000/7000

=$20 units

For the demand at break even point D', we have the following:

D' = Cy/(p-cy)

We We substitute in the above equation the value of Cy as $100,000 and p as $40/unit and cy as $20 /unit

D' = 100000/(40 -20)

=5000 units/year

Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $12. At the start of January 2015, VGC’s income statement accounts had zero balances and its balance sheet account balances were as follows:
Cash $ 1,590,000
Accounts Receivable 245,000
Supplies 17,800
Equipment 922,000
Land 1,250,000
Building 435,000
Accounts Payable 137,000
Unearned Revenue 140,000
Notes Payable (due 2018) 81,000
Common Stock 2,800,000
Retained Earnings 1,301,800
In addition to the above accounts, VGC’s chart of accounts includes the following: Service Revenue, Salaries and Wages Expense, Advertising Expense, and Utilities Expense.
1. Analyze the effect of the January transactions (shown below) on the accounting equation, and indicate the account, amount, and direction of the effect (+ for increase and − for decrease) of each transaction.(Enter any decreases to account balances with a minus sign.)
a. Received $65,250 cash from customers for subscriptions that had already been earned in 2014.
b. Received $215,000 cash from Electronic Arts, Inc. for service revenue earned in January.
c. Purchased 10 new computer servers for $34,600; paid $14,400 cash and signed a three-year note for the remainder owed.
d. Paid $12,600 for an Internet advertisement run on Yahoo! in January.
e. Sold 19,200 monthly subscriptions at $12 each for services provided during January. Half was collected in cash and half was sold on account.
f. Received an electric and gas utility bill for $5,250 for January utility services. The bill will be paid in February.
g. Paid $420,000 in wages to employees for work done in January.
h. Purchased $3,300 of supplies on account.
Paid $3,300 cash to the supplier in (h).
Prepare journal entries for the January transactions listed in part 1, using the letter of each transaction as a reference. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Create T-accounts, enter the beginning balances shown above, post the journal entries to the T-accounts, and show the unadjusted ending balances in the T-accounts.
Prepare an unadjusted trial balance as of January 31, 2015.
Prepare an Income Statement for the month ended January 31, 2015, using unadjusted balances from part 4
Calculate net profit margin, expressed as a percent

Answers

Answer:

Explanation:

1 Journal Entries:

Date-----Accounts Title and Explanation-----Debit$--------Credit $

a             Cash                                               65250  

              Service Revenue                                                65250

b             Cash                                               215000  

                 Accounts Receivable                                      215000

c              Office Equipment (computers)     34600  

               Cash                                                                   14400

               Note Payable                                                   20200

d           Advertisement expense                   12600  

             Cash                                                                    12600

e            Cash                                                115200  

             Accounts Receivable                115200  

             Service Revenue                                               230400

f             Utility expenses                               5250  

             Accounts Payable                                              5250

g            Wages                                            420000  

              Cash                                                                  420000

h            Supplies                                           3300  

             Accounts Payable                                              3300

i            Accounts Payable                           3300  

             Cash                                                                   3300

unadjusted trial balance as of January 31, 2015:

Account Title                     Debit $                            Credit $

Cash                                  1535150  

Accounts Receivable        145200  

Supplies                              21100  

Equipment                        956600  

Land                                1250000  

Building                           435000

Accounts Payable                                                         142250

Unearned Revenue                                                      140000

Notes Payable                                                              101200

Common Stock                                                            2800000

Retained Earnings                                                      1301800

Service Revenue                                                        295650

Advertisement                 12600  

Utilities                             5250  

Wages                              420000  

Total                                  4780900                         4780900

Income Statement for the month ended January 31, 2015:

Service Revenues $295650

Less: Expenses:

Wages 420000

Advertisement 12600

Utility expense 5250 437850

Net Income (Loss) ($142200)

January Income Statement is showing loss of 48.1%.

Plaintiffs filed a class action lawsuit against investment banks alleging that they inflated prices on more than 300 IPOs, causing IPO investors to overpay for stock, and unlawfully benefited these banks through overcompensation of banking commissions and profits made through quick sales of this stock in their own accounts before prices settled into a more realistic valuation. How would you combat such abuses going forward

Answers

Answer: The answer is provided below

Explanation:

When we think about investment, individuals and firms should understand the risks before they invest their money, and also the loss risks.

When investing in a business or a corporation that you may work for, it is vital to understand and be clear on the fine print and also the 180-dayhold. It is vital on any purchase to understand the risks and rules which come along with it especially stocks.

It is crucial to the success of an individual, that research is done in order to make sure everything is understood prior to the stock sale.

On the other side, federal banking regulators committee should also do a better job with the investigations and the enforcements of bank and the stock regulations.

You have been asked to analyze the bids for 200 polished disks used in solar panels. These bids have been submitted by three suppliers: Thailand Polishing, India Shine, and Sacramento Glow. Thailand Polishing has submitted a bid of 3,000 baht. India Shine has submitted a bid of 3,000 rupee. Sacramento Glow has submitted a bid of $3,000. You check with your local bank and find that $1=10 baht , and $1=8 rupee. The final destination for the disks is New Delhi, India and there is a 35% import tax. Thailand Polishing and Sacramento Glow are based outside of India and India Shine is based in India.A .What is the price per unit in dollars, including import tax for Thailand polishing?B. What is the price per unit for India Shine?C. What is the price per unit for Sacramento Glow?

Answers

Answer:

(a) Thailand polishing price per unit is $2.03

(b) India shine price per unit is $1.88

(c) Sacramento glow price per unit is $15

Explanation:

(a) Thailand polishing:

Thailand polishing has submitted a quote of 3000 baht

$1 = 10 bhat

1 bhat = $ 0.1

Thailand polishing submitted bid = 3000 × $0.1 =$300

Import tax = 35%

Total cost = 1.35 × 300 = $405

Cost per unit = 405 ÷ 200 = $2.03

(b) India shine:

India shine has submitted a bid of 3000 rupees

$1 = 8 rupees

1 Rupee = $0.125

India shine submitted bid = 3000 × 0.125 = $375

Price per unit = 375 ÷ 200 = $1.88

(c) Sacramento Glow submitted bid = $3,000

price per unit = $3,000 ÷ 200

= $15

Bookmark question for later Zoey is the CEO of a corporation she organized herself, and the corporation has 15 shareholders. The company operates in several states, as well as outside of the U.S. Her business consists mostly of training services for in-home medical care personnel. Her company would be a __________ corporation

Answers

Answer:

Professional corporation

Explanation:

A professional corporation is a type of corporation that is established by professional, majorly licensed individuals; they could include doctors, attorneys or architects. They mostly provide services that are related to the profession they practice. For example, architects establish an architectural firm to provide architectural services.

Professional corporations are usually established based on the laws binding the profession or the laws of the state. Most professional entrepreneurs can set up a professional corporation and can be established by one or more professionals.

In most professional corporations, the shareholders are usually only licensed individuals of the service rendered by the professional company.

Therefore, considering the information, Zoey's corporation would be a professional corporation.

Lopez Corporation incurred the following costs while manufacturing its product.Materials used in product $120,000 Advertising expense $45,000Depreciation on plant 60,000 Property taxes on plant 14,000Property taxes on store 7,500 Delivery expense 21,000Labor costs of assembly- 110,000 Sales commissions 35,000line workersFactory supplies used 23,000 Salaries paid to sales clerks 50,000Work in process inventory was $12,000 at January 1 and $15,500 at December 31. Finished goods inventory was $60,000 at January 1 and $45,600 at December 31.Compute:____ Cost of goods manufactured $Compute cost of goods sold.

Answers

Answer:

Cost of goods manufactured is $323,500

Cost of goods sold is $337,900

Explanation:

Given:

Materials used in product = $120,000

Advertising expense = $45,000

Depreciation on plant = $60,000

Property taxes on plant = $14,000

Property taxes on store = $7,500

Delivery expense = $21,000

Labor costs of assembly-line workers = $110,000

Sales commissions = $35,000

Factory supplies used = $23,000

Salaries paid to sales clerks = $50,000

Work in process inventory was $12,000 at January 1 and $15,500 at December 31.

Finished goods inventory was $60,000 at January 1 and $45,600 at December 31.

(a) Cost of goods manufactured = Materials used in product + Depreciation on plant + Labor costs of assembly-line workers + Property taxes on plant +  Factory supplies used + Beginning work in process - ending work in process

= $120,000 + $60,000 + $110,000 + $14,000 + $23,000 + $12,000 - $15,500

= $323,500

(b) Cost of goods sold = Cost of goods manufactured + opening finished goods inventory - Closing finished goods inventory

= $323,500 + $60,000 - $45,600

= $337,900

Based on the given information,

The cost of goods manufactured is $323,500

cost of goods sold  $337,900

Calculations are as follows

(a) Cost of goods manufactured =Depreciation on plant +  Materials used in product +Property taxes on plant +   Labor costs of assembly-line workers + Factory supplies used + Beginning work in process - ending work in process

= $120,000 + $60,000 + $110,000 + $14,000 + $23,000 + $12,000 - $15,500

= $323,500

(b) Cost of goods sold = Cost of goods manufactured + opening finished goods inventory - Closing finished goods inventory

= $323,500 + $60,000 - $45,600

= $337,900

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Sloan Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $3,831. The freight and installation costs for the equipment are $554. If purchased, annual repairs and maintenance are estimated to be $415 per year over the four-year useful life of the equipment. Alternatively, Sloan can lease the equipment from a domestic supplier for $1,745 per year for four years, with no additional costs.
Required:
a. Prepare a differential analysis dated December 3 to determine whether Sloan should lease (Alternative 1) or purchase (Alternative 2) the equipment. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon () will automatically appear if required. (Hint: This is a "lease or buy" decision, which must be analyzed from the perspective of the equipment user, as opposed to the equipment owner.)
b. Determine whether the Sloan should lease (Alternative 1) or purchase (Alternative 2) the equipment.

Answers

Answer:

                                    Alternative 1           Alternative 2        Differential

                                    Lease                      Buy                       Amount

Purchase cost                 $0                       $3,831                   ($3,831)

Freight and                      $0                        $554                     ($554)

installation costs

Annual repairs and         $0                       $1,660                  ($1,600)

maintenance costs

Lease costs                  $6,980                       $0                     $6,980

Total costs                    $6,980                  $6,045                     $935

The equipment should be purchased instead of leased because the costs of purchasing and maintenance costs are lower than lease costs.

Explanation:

A differential analysis is carried out to determine whether alternative projects' revenues and costs are higher. This way you can determine which project or investment costs less or generates higher profits.

A company is considering the purchase of a new piece of equipment for $90,000. Predicted annual cash inflows from this investment are $36,000 (year 1), $30,000 (year 2), $18,000 (year 3), $12,000 (year 4) and $6,000 (year 5). The payback period is:

Answers

Answer:

3.5 years

Explanation:

Payback period calculates the amount of the time it takes to recover the amount invested from the cumulative cash flows.

The amount invested is $-90,000

In the first year , $-90,000 + $36,000 = $-54,000 is recovered

In the second year, $-54,000 + $30,000 = $-24,000 is recovered

In the third year, $-24,000 + $18,000 = $-6,000 is recovered

In the fourth year, $-6,000 + $12,000 = $6000 is recovered.

By the fourth year, the total amount invested is recovered as the cash flow turns postive

Pay back period = 3 years + $6000/$12,000 = 3.5 years

I hope my answer helps you

Fine Stationery makes personalized stationery of the highest quality. The company maintains a stock of blank note cards, calling cards, stationery, and envelopes. Customers order online, indicating the product type, personalization (monogram, name), font style, and color. The following schedule is typical of an order of 100 calling cards:
Activity Minutes
Process order ............... 3
Wait for production to begin......... 55
Pull calling cards from inventory........ 15
Set up machine for font style and color.... 2
Process calling cards............ 40
Inspect cards.............. 5
Wait for packaging ............ 16
Package cards for shipping......... 2
Wait for pickup by FedEx......... 120
Required:
Calculate the manufacturing cycle efficiency.

Answers

Answer:

The manufacturing cycle efficiency is 0.219

Explanation:

In order to calculate the manufacturing cycle efficiency we would have to calculate the following formula:

manufacturing cycle efficiency=value added time/throughput time

value added time= 40 min

throughput time=Process time+Inspection time+movie time+Queue time

throughput time=40+5+15+2+120

throughput time=182 min

Therefore, manufacturing cycle efficiency=40/182

manufacturing cycle efficiency=0.219

The manufacturing cycle efficiency is 0.219

Some major technology companies have faced scrutiny in the past when it comes to labor and human rights on the overseas suppliers' side. What are the challenges of monitoring overseas suppliers (especially tier 3, tier 4, etc.) that are guilty of not following labor and human rights guidelines

Answers

Answer: The answer is provided below

Explanation:

With overseas factories that continue to move to new locations with a lower labour costs, the monitoring and controlling working conditions becomes a challenge. Research has shown that companies do little to monitor human rights violations in the low-cost supply chain locations.

A scandal involving Apple was reported in 2014 at a manufacturing building in China. The building which was owned by Catcher Technology Co., manufactures metal iPad covers for iPhones. Some findings included hiring discrimination, locked safety exits, excessive work hours, and also unpaid overtime each month totalling about $290,000 in owed wages. The factory was reported to have been dumping its industrial fluids and waste into nearby rivers, and also not providing proper toxic equipment for the employees.

Human rights of these people saw n those area are being abused by having them exposed to pollution, which can lead to lung diseases.

Companies like Apple have said that they are continuing to monitor situations like this, and are fixing them, but we still hear cases of more wrongdoings, therefore you have to wonder how vital these issues truly are to the firms involved.

A couple borrows $200,000 for a mortgage that requires fixed monthly payments over 30 consecutive years. The first monthly payment is due in one month. If the interest rate on the mortgage is 5%, which of the following comes closest to the monthly payment?
When would the calculation of the effective annual interest rate be most useful?
a. When comparing two investments with different annuity amounts
b. When comparing two investments with different par values
c. When comparing two investments that end at different points in time
d. When comparing two investments that compound differently within a year
e. When comparing two investments that have different inherent risk

Answers

Answer:

(a) The monthly payment is $ 1,073.64

(b) The correct option is option D. When comparing two investments that compound differently within a year.

Explanation:

Monthly payment = $1,073.64

Using financial calculator BA II Plus - Input details:

                                                          $

I/Y = Rate = 5/12 =                           0.416667

FV = Future value =                             $0

N = Total payment term                 25*12 =  360

PV = Present value of loan             -$200,000

CPT > PMT = Monthly Payment       $1,073.64

1. The monthly payment by the couple is $1,073.64.

2. The calculation of the effective annual interest rate would be most useful d. When comparing two investments that compound differently within a year.

Data and Calculations:

The monthly payment is determined as follows:

(# of periods)   = 360 months (30 x 12)

I/Y (Interest per year) = 5%

PV (Present Value) = $200,000

FV (Future Value) = $0

Results:

Monthly Payment = $1,073.64

Sum of all periodic payments = $386,511.57

Total Interest = $186,511.57

Thus, the couple would pay $1,073.64 monthly for 30 years in order to pay off the mortgage of $200,000 at 5% interest.

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Cho's Performance Pizza is a small restaurant in Miami that sells gluten-free pizzas. Cho's very tiny kitchen has barely enough room for the three ovens in which her workers bake the pizzas. Cho signed a lease obligating her to pay the rent for the three ovens for the next year. Because of this, and because Cho's kitchen cannot fit more than three ovens, Cho cannot change the number of ovens she uses in her production of pizzas in the short run. However, Cho's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Cho lets them know how many workers she needs for each day of the week. In the short run, these workers are __________ inputs, and the ovens are __________ inputs.

Answers

Answer: Variable ... Fixed

Explanation:

In the short run, Variable Inputs or costs are known as those which can be changed and their quantities can be varied. In this scenario, the employees that Cho's uses can be varied and so are the Variable Inputs.

Similarly, those costs that cann ot be changed or varied in the short run are rightly known as Fixed Inputs. Cho's Kitchen cannot take more than 3 ovens and also she has already signed a lease for them. These costs cannot be changed and so make the oven a Fixed Input.

It is worthy of note that in the long term, all Costs are considered Variable.

Callas Corporation paid $380,000 to acquire 40 percent ownership of Thinbill Company on January 1, 20X9. The amount paid was equal to Thinbill’s underlying book value. During 20X9, Thinbill reported operating income of $45,000 and income of $20,000 from gains on derivative contracts that were designated as cash flow hedges, so these gains were reported in Other Comprehensive Income (OCI). Thinbill paid dividends of $9,000 on December 10, 20X9.

Required:
a. Give all journal entries that Callas Corporation recorded in 20X9, associated with its investment in Thinbill Company.
b. Give all closing entries at December 31, 20X9, associated with its investment in Thinbill Company.

Answers

Answer: Please refer to Explanation

Explanation:

A.

January 1 20X9

DR Investment in Thinbill Company $380,000

CR Cash $380,000

(To record Investment in Thinbill Company)

DR Investment in Thinbill Company $18,000

CR Income from Thinbill Company $18,000

(To record income from Thinbill company)

DR Investment in Thinbill Company $8,000

CR Unrealised gain on Investment $8,000

(To record share of OCI reported by Thinbill Company)

DR Cash $3,600

CR Dividend $3,600

(To record dividend received from Thinbill Company)

Workings

Income from Thinbill Comapny

Callas owns 40% of Thinbill company and so is entitled to 40% of income which is,

= 40% x 45,000

= $18,000

Dividends

= 9,000 x 40%

= $3,600

Unrealised Gain on Income

= 20,000 x 40%

= $8,000

b. The closing entries are as follows,

DR Income from Thinbill Company $18,000

CR Retained Earnings $18,000

(To recognise income from Thinbill Company)

DR Unrealised Gain on Investment $8,000

CR Accumulated OCI Income from Investee (Thinbill Company) $8,000

(To record accumulated OCI income)

Hoosier Corporation declared a 2-for-1 stock split to all shareholders of record on March 25 of this year. Hoosier reported current E&P of $600,000 and accumulated E&P of $3,000,000. The total fair market value of the stock distributed was $1,500,000. Barbara Bloomington owned 1,000 shares of Hoosier stock with a tax basis of $100 per share.a) What amount of taxable dividend income, if any, does Barbara recognize this year? Assume the fair market value of the stock was $150 per share on March 25 of this year.b) What is Barbara's income tax basis in the new and existing stock she owns in Hoosier Corporation, assuming the distribution is tax-free?c) How does the stock dividend affect Hoosier's accumulated E&P at the beginning of next year?

Answers

Answer:

(a) The stock dividend is not taxable because it affects all shareholders pro rata

(b) Babara will transfer half of the old stock base to the new stock and make her new and old stock tax base $50

(c) Hoosier does not change his E&P for the stock dividend since the shareholders are not taxable.

Explanation:

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