Last year Rennie Industries had sales of $270,000, assets of $175,000 (which equals total invested capital), a profit margin of 5.3%, and an equity multiplier of 1.2. The CFO believes that the company could reduce its assets by $51,000 without affecting either sales or costs. The firm finances using only debt and common equity. Had it reduced its assets by this amount, and had the debt/total invested capital ratio, sales, and costs remained constant, how much would the ROE have changed? Do not round your intermediate calculations. a. 3.03% b. 3.07% c. 4.04% d. 4.52% e. 4.08%

Answers

Answer 1

Answer:

c. 4.04%

Explanation:

Calculation to determine how much would the ROE have changed

First step is to Calculate last year Last year profit

Last year profit = $270,000 × 5.3%

Last year profit = $14,310.00

Second step is to calculate Last year equity

$175,000/Last year equity = 1.2

Last year equity = $175,000/1.2

Last year equity= $145,833.33

Third step is to calculate Last year ROE

Last year ROE = $14,310.00/$145,833.33

Last year ROE= 0.0981*100

Last year ROE= 9.81%

Fourth step is to Calculate New asset value

New asset value = $175,000 - $51,000

New asset value = $124,000

Fifth step is to calculate Equity after asset reduction

Equity after asset reduction = $124,000/1.2

Equity after asset reduction = $103,333.33

Sixth step is to calculate ROE after asset reduction

ROE after asset reduction = $14,310.00/$103,333.33

ROE after asset reduction =0.1385*100

ROE after asset reduction =13.85%

Now let calculate amount of change in ROE

Using this formula

Change in ROE = ROE after asset reduction - Last year ROE

Let plug in the formula

Change in ROE = 13.85% - 9.81%

Change in ROE = 4.04%

Therefore how much would the ROE have changed is 4.04%


Related Questions

10. Identical wages
Which of the following is required for all workers to earn identical wages in the long run? Check all that apply.

All workers are protected by a union.
Workers can move from one labor market to another at zero cost.
All workers have equal ability and can be trained to do different types of employment at minimum cost.
All workers must have a bachelor's degree.

Answers

Answer:

hi how are you

Explanation:

9. A Japanese car manufacturer built a factory in the United
States, It did so to reduce shipping and other costs. Make a list
of who will benefit and who will not benefit from this factory.

Answers

Answer:

Se benefician los estado unidenses porque no tienen que pagar más por el coche, también porque al abrir una fábrica pueden llegar a crear más de 5.000 puestos de trabajo. Y los japoneses no salen beneficiados porque la empresa que lleva los coches de Japón a estados unidos seguramente sea japonesa y también los trabajadores japoneses pierden trabajo

Explanation:

Garcia Co. sells snowboards. Each snowboard requires direct materials of $113, direct labor of $43, and variable overhead of $58. The company expects fixed overhead costs of $661,000 and fixed selling and administrative costs of $130,000 for the next year. It expects to produce and sell 11,300 snowboards in the next year. What will be the selling price per unit if Garcia uses a markup of 15% of total cost

Answers

Answer:

See

Explanation:

Total cost of 11,300 snow balls

Per unit total =

Direct material = $113 × 100

Direct labor = $43 × 262.79

Variable overhead = $58 × 194.82

Fixed overhead = $661,000

Total cost of 11,300 snow balls $2,700,000

Cost of 1 snow ball = Total cost of 11,300 snow balls / Total number of snowballs

Pilgrim Industries scheduled its annual sales meeting at Celestial City Resort from January 5-10. In addition to meeting and hotel rooms, the resort was to provide an ice-skating pond for the Pilgrim's annual employee hockey game. In the weeks before the meeting, the resort is hit with its worst heat wave on record. Although hotel and meeting rooms are available, there is no possibility of ice skating at the site. If a court finds that the one of Pilgrim's principal purposes in the agreement was the inclusion of an ice-skating pond, the Pilgrim-Celestial contract could be discharged via the doctrine of:

Answers

Answer:

If a court finds that the one of Pilgrim's principal purposes in the agreement was the inclusion of an ice-skating pond, the Pilgrim-Celestial contract could be discharged via the doctrine of:

Frustration of Purpose.

Explanation:

The doctrine of Frustration of Purpose occurs when there is a change of circumstances that is not the fault of either Pilgrim Industries or Celestial City Resort.  Since these two parties did not cause the circumstances that made it legally, physically, or commercially impossible to fulfil the contract, the contract can be discharged by the court based on this doctrine.  It is also known as Force Majeure.

Colorado Rocky Cookie Company offers credit terms to its customers. At the end of 2021, accounts receivable totaled $625,000. The allowance method is used to account for uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $32,000 at the beginning of 2021 and $21,000 in receivables were written off during the year as uncollectible. Also, $1,200 in cash was received in December from a customer whose account previously had been written off. The company estimates bad debts by applying a percentage of 10% to accounts receivable at the end of the year.

Required:
Prepare journal entries to record the write-off of receivables, the collection of Sl,200 for previously written off receivables, and the year-end adjusting entry for bad debt expense.

Answers

Answer and Explanation:

The journal entries are shown below:

Allowance for uncollectible accounts $21,000

         To Account receivable $21,000

(being written off is recorded)

Account receivable Dr $1,200

     To Allowance for uncollectible accounts $1,200

(Being written back of receivable is recorded)

Cash Dr $1,200

     To Account receivable $1,200

(being cash received is recorded)

Bad debt expense $50,300 ($32,000 - $21,000 + $1,200 - $625,000 × 0.10)

   To Allowance for uncollectible accounts $50,300

(being the bad debt expense is recorded)

You plan to visit Geneva, Switzerland in three months to attend an international business conference. You expect to incur the total cost of SF 5,000 for lodging, meals and transportation during your stay. As of today, the spot exchange rate is $0.60/SF and the three-month forward rate is $0.63/SF. You can buy the three-month call option on SF with the exercise rate of $0.64/SF for the premium of $0.05 per SF. Assume that your expected future spot exchange rate is the same as the forward rate. The three-month interest rate is 6 percent per annum in the United States and 4 percent per annum in Switzerland.

Required:
a. Calculate your expected dollar cost of buying $F5,000 if you choose to hedge by a call option on SF.
b. Calculate the future dollar cost of meeting this SF obligation if you decide to hedge using a forward contract.
c. At what future spot exchange rate will you be indifferent between the forward and option market hedges?
d. Illustrate the future dollar cost of meeting the SF payable against the future spot exchange rate under both the options and forward market hedges.

Answers

Answer:

A. 3403.75 dollars

B. 3150

C. 0.579

D. Is an attachment

Explanation:

A. We first find the premium cost

= 0.05x5000 x 1+0.06/4

= 250x1.015

= 253.75

From here we find expected dollar cost

= Exchange rate x units + premium

= 0.63x5000+253.75

= 3,403.75 dollars

B. Forward rate = 0.63

Total cost of dollar

= 0.63x5000

= 3150

C. The investor would be indifferent at 0.579

Forward rate = unit * future + premium

3150 = 5000 * future + 253.75

3150-253.75 = 5000*future

We solve and divide through by 5000

Future = 0.579

D is in the attachment

The expected dollar cost of buying $F5,000 through the call option is $3403.75.

The first thing to do is to calculate the premium cost. This will be:

= (5% × 5000) × (1 + 6%/4)

= (0.05 × 5000) × (1 + 0.06/4)

= 250 × 1.015

= 253.75

The expected dollar cost will be:

= Exchange rate × Number of units + Call premium cost

= 0.63 × 5000 + 253.75

= 3403.75

The future dollar cost of meeting this SF obligation will be calculated thus:

= Forward rate × Number of units

= 0.63 × 5000

= $3150

The future spot exchange rate that the person will be indifferent will be:

= (3150 - 253.75) / 5000

= $0.579

Learn more about call option on:

https://brainly.com/question/25603919

Preston Corp. is estimating its WACC. Its target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity. Its bonds have a 12 percent coupon, paid semiannually, a current maturity of 20 years, and sells for $1,100. The firm could sell, at par, $100 preferred stock which pays a 6.07 percent annual dividend, but flotation costs of 5 percent would be incurred. Preston's beta is 1.2, the risk-free rate is 3 percent, and the market risk premium is 5 percent. The firm's marginal tax rate is 40 percent. What is Preston's WACC

Answers

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The economy of the United States can be best described as
a) a mixed economy
b) a command economy
c) a mixed economy, but predominantly command and tradition
d)
a pure free marker

Answers

Answer:

A a mixed economy.

Explanation:

The asnswer is a mixed economy

The answer will be mostly likely a
Hopefully it helps

Enter the following cash payments transactions in a general journal: Sept. 5 Issued Check No. 318 to Clinton Corp. for merchandise purchased August 28, $6,300, terms 2/10, n/30. Payment is made within the discount period. 12 Issued Check No. 319 to Martin Company for merchandise purchased September 2, $7,500, terms 1/10, n/30. A credit memo had been received on September 8 from Martin Company for merchandise returned, $500. Payment is made within the discount period after deduction for the return dated September 8. 19 Issued Check No. 320 to Expert Systems for merchandise purchased August 20, $3,900, terms n/30. 27 Issued Check No. 321 to Dynamic Data for merchandise purchased September 17, $9,000, terms 2/10, n/30. Payment is made within the discount period g

Answers

Answer:

Cash Payments Transactions

General Journal

Sept. 5: Debit Accounts payable (Clinton Corp.) $6,300

Credit Cash $6,174

Credit Cash Discounts $126

To record the payment, via Check No. 318 for full settlement, including discount.

Sept. 12: Debit Accounts payable (Martin Company) $7,000

Credit Cash $6,930

Credit Cash Discounts $70

To record the payment on account, via Check No. 319, including discount.

Sept. 19: Debit Accounts payable (Expert Systems) $3,900

Credit Cash $3,900

To record payment on account.

Sept. 27 Debit Accounts payable (Dynamic Data) $9,000

Credit Cash $8,820

Credit Cash Discounts $180

To record payment on account, including discount.

Explanation:

a) Data and Analysis:

Sept. 5: Accounts payable (Clinton Corp.) $6,300 Cash $6,174 Cash Discounts $126 Check No. 318

Sept. 12: Accounts payable (Martin Company) $7,000 Cash $6,930 Cash Discounts $70 Check No. 319

Sept. 19: Accounts payable (Expert Systems) $3,900 Cash $3,900

Sept. 27 Accounts payable (Dynamic Data) $9,000 Cash $8,820 Cash Discounts $180

Big Corporation receives management consulting services from its 95 percent owned subsidiary, Small Inc. For the year 20X8, Small billed Big $140,000. Small's labor cost and other associated costs for the employees providing services to Big totaled $121,000 in 20X8. Big reported $2,567,000 of income from its own separate operations for 20X8, and Small reported net income of $695,000. Based on the preceding information, what amount of income should be assigned to the noncontrolling shareholders in the consolidated income statement for 20X8

Answers

Answer: $34750

Explanation:

The amount of income should be assigned to the noncontrolling shareholders in the consolidated income statement for 20X8 will be:

Net income of Small = $695,000

Bug company's share = 95% × $695000 = $660250

Therefore, non controlling shareholders at 5% will be:

= 5% × Net income of Small

= 5% × $695000

= 0.05 × $695000

= $34750

The fractional reserve system of banking started when goldsmiths began: Select one: a. Accepting deposits of gold for safe storage b. Charging people who deposited their gold c. Using deposited gold to produce products for sale to others d. Issuing paper receipts in excess of the amount of gold held

Answers

Answer:

d. Issuing paper receipts in excess of the amount of gold held.

Explanation:

Fractional-reserve banking is practiced by all commercial banks. Such banks involve banks that accept deposits from various customers and make loans to other borrowers while keeping an amount in reserve that is equal to a part of the deposit liabilities of the bank.

The fractional reserve system of banking started when goldsmiths began issuing paper receipts in excess of the amount of gold held.

Option d. is correct.

Logan, a 50% shareholder in Military Gear Incorporated (MG), is comparing the tax consequences of losses from C corporations with losses from S corporations. Assume MG has a $116,000 tax loss for the year, Logan's tax basis in his MG stock was $158,000 at the beginning of the year, and he received $83,000 ordinary income from other sources during the year. Assuming Logan's marginal tax rate is 24 percent, how much more tax will Logan pay currently if MG is a C corporation compared to the tax he would pay if it were an S corporation?

Answers

Answer:

$13,920

Explanation:

Calculation to determine how much more tax will Logan pay currently if MG is a C corporation compared to the tax he would pay if it were an S corporation

First step is to calculate what Logan's pay, if MG is a C corporation

Logan's pay, if MG is a C corporation =($83,000*24%)

Logan's pay, if MG is a C corporation = $19,920

Second step is to calculate Logan's pay, if MG is a S Corporation

Logan's pay, if MG is a S Corporation =[($83,000-$58,000)*24%]

($116,000*50% = $58,000)

Logan's pay, if MG is a S Corporation=$6,000

Now let calculate how much more tax will Logan pay currently

Logan pay currently = ($19,920-$6,000)

Logan pay currently = $13,920

Therefore how much more tax will Logan pay currently if MG is a C corporation compared to the tax he would pay if it were an S corporation will be $13,920

Smelly Perfume Company manufactures and distributes several different products. The company currently uses a plantwide allocation method for allocating overhead at a rate of $7 per direct labor hour. Cindy is the department manager of Department C which produces Products J and P. Department C has $16,200 in traceable overhead. Diane is the department manager of Department D which manufactures Product X. Department D has $11,100 in traceable overhead. The product costs (per case of 24 bottles) and other information are as follows:

J P X
Direct materials $100.00 $ 72.00 $48.00
Direct labor 42.00 31.50 12.00
Overhead 28.00 21.00 14.00
$170.00 $124.50 $74.00
Machine hours 4 2 3
Number of cases (per year) 300 500 600

1. If Smelly changes its allocation basis to machine hours, what is the total product cost per case for Product P?

a. $163.50
b. $144.00
c. $138.15
d. $117.15

2. If Smelly changes its overhead allocation to departmental rates, what is the product cost per case for Product P assuming Departments C and D use direct labor hours and machine hours as their respective allocation bases?

a. $117.15
b. $163.50
c. $131.50
d. $138.15

Answers

Answer:

Smelly Perfume Company

1. a. $117.15

2. $115.95

Explanation:

a) Data and Calculations:

                                                J              P            X         Total

Direct materials              $100.00  $ 72.00   $48.00

Direct labor                        42.00       31.50     12.00

Overhead                          28.00       21.00     14.00

                                       $170.00  $124.50  $74.00

Direct labor hours per unit   4              3           2

Total direct labor hours    1,200          1,500     1,200      3,900

Machine hours per unit        4              2           3

Total machine hours        1,200          1,000     1,800      4,000

Number of cases (per year) 300        500      600

Department                                C                    D              Total

Traceable overheads           $16,200            $11,100    $27,300

Product costs (machine hours):

Predetermined overhead rate based on machine hours = $6.825 ($27,200/4,000) per machine hour

                                                J              P            X

Direct materials              $100.00  $ 72.00   $48.00

Direct labor                        42.00       31.50     12.00

Overhead (machine hour) 27.30      13.65     20.48

                                       $169.30    $117.15   $80.48

Product costs (departmental overhead rates):

Departmental overhead rates per hour:

Department C  $4.15 ($16,200/3,900) per labor hour

Department D $2.78 ($11,100/4,000) per machine hour

                                                J              P            X

Direct materials              $100.00  $ 72.00   $48.00

Direct labor                        42.00       31.50     12.00

Overhead                           16.60       12.45       8.34

                                      $158.60   $115.95   $68.34

Jerryworld, Inc., is looking at setting up a new manufacturing plant in Dallas to produce footballs. The company bought some land six years ago for $5.2 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent these facilities from a competitor instead. If the land were sold today, the company would net $4.6 million. The company wants to build its new manufacturing plant on this land; the plant will cost $10.4 million to build, and the site requires $840,000 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project

Answers

Answer:

the proper cash flow amount to use as the initial investment in fixed assets  is $15,840,000

Explanation:

The computation of the  proper cash flow amount to use as the initial investment in fixed assets  is shown below:

= (Net amount + cost of the plant + grading cost)

= ($4.6 million  + $10.4 million  + $0.84 million )  

= $15,840,000

Hence, the proper cash flow amount to use as the initial investment in fixed assets  is $15,840,000

Crane Company offered detachable 5-year warrants to buy one share of common stock (par value $5) at $20 (at a time when the stock was selling for $30). The price paid for 700, $1,000 bonds with the warrants attached was $810000. The market price of the Crane bonds without the warrants was $710000, and the market price of the warrants without the bonds was $71800. What amount should be allocated to the warrants

Answers

Answer:

$ 74,389.87

Explanation:

It is given that :

The cost of 700, $1000 bonds with warrant attached to the bond = $810,000

The cost of Crane bonds with warrant = $710,000

The cost of market price of the warrants without bonds = $71,800

Therefore, the amount should be allocated to the warrants :

[tex]$=\frac{\$71,800}{\$71,800+\$710,000}\times \$ 810,000$[/tex]

[tex]$=\frac{\$71,800}{\$781,800}\times \$ 810,000$[/tex]

= $ 74,389.87

Luther Industries has no debt and expects to generate free cash flows of $48 million each year. Luther believes that if it permanently increases its level of debt to $100 million, the risk of financial distress may cause it to lose some customers and receive less favorable terms from its suppliers. As a result, Luther's expected free cash flows with debt will be only $44 million per year. Suppose Luther's tax rate is 40%, the risk-free rate is 6%, the expected return of the market is 14%, and the beta of Luther's free cash flows is 1.25 (with or without leverage). The value of Luther with leverage is closest to:_______.
A) 11.5%.
B) 10.8%.
C) 9.8%.
D) 13.0%.

Answers

Answer: $315 million

Explanation:

First find the cost of capital as a required rate of return using CAPM:

= Risk free rate + Beta * (Market return - Risk free rate)

= 6% + 1.25 *(14% - 6%)

= 16%

Value of Luther with leverage:

= (Cash flows with debt / required return) + (Debt * Tax)

= (44 million / 16%) + (100 million * 40%)

= $315 million

Options do not represent value.


what is marketing strategies ​

Answers

Answer:

A marketing strategy refers to a business's overall game plan for reaching prospective consumers and turning them into customers of their products or services :)

Explanation:

In other words!

It refers to a business's overall game plan for getting more costumers and more money with the work of their products and services.

Brief Exercise 15-02 During January, its first month of operations, Coronado Company accumulates the following manufacturing costs: raw materials $4,400 on account, factory labor $6,200 of which $5,800 relates to factory wages payable and $400 relates to payroll taxes payable, and factory utilities payable $2,100. Prepare separate journal entries for each type of manufacturing cost.

Answers

Answer:

Item 1

Debit : Raw Materials $4,400

Credit : Accounts Payable $4,400

Item 2

Debit : Work in Process : Factory wages ($5,800 + $400)  $6,200

Credit : Wages Payable $6,200

Item 3

Debit : Work In Process : Factory Utilities $2,100

Credit : Utilities Payable $2,100

Explanation:

If there is no immediate payment of cash for the expenses incurred, raise a liability - Accounts Payable otherwise recognize a Cash Outflow.

All manufacturing costs incurred are accounted for in the Work In Process Account.

Journal entries for each type of manufacturing cost have been prepared above.

Carlos transfers property with a tax basis of $750 and a fair market value of $1,200 to a corporation in exchange for stock with a fair market value of $975 and $75 cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $150 on the property transferred. What is the corporation's tax basis in the property received in the exchange

Answers

Answer:

$975

Explanation:

Use the following formula to calculate the Corporation's Tax basis in the property received in exchange

Corporation's Tax basis = Tax basis of Property transferred + Gain recognized

Where

Tax basis of Property transferred = $750

Gain recognized = 975 - $750 = $225

Placing values in the formula

Corporation's Tax basis = $750 + $225

Corporation's Tax basis = $975

H. Tillman performed legal services for J. Laney. Due to a cash shortage, an agreement was reached whereby J. Laney. would pay H. Tillman a legal fee of approximately $12800 by issuing 3100 shares of its common stock (par $1). The stock trades on a daily basis and the market price of the stock on the day the debt was settled is $3.90 per share. Given this information, the journal entry for J. Laney. to record this transaction is:

Answers

Answer:

The journal entry for J. Laney to record this transaction is

Dr legal expenses $12,990

______Cr Common stock $3,100

_______Cr Share premium $8,990

Explanation:

The common stocks are carried at par value of $1. This implies that any price paid in excess of the par value is made provision for in the share premium account.

Again, the common stocks issued are measured at the price required to settle the legal expenses and are paid in excess of par value of $1.

Share premium = ($3.90 - $1) × 3,100

Share premium = $8,990

Explain how planning involves making decisions today that will have an impact later.

Answers

Planning is figuring out what you will do and when. If you plan to play video games instead of doing homework, then tomorrow at school you will get in trouble. If you plan on dropping out of high school, later in life you will not be able to get as many jobs.

Answer: Decision making is the core of planning. Unless a decision has been made, a plan cannot be implemented in the field. ... Decisions can be made without planning but planning cannot be done without making decisions. Planning can be defined as the process of selecting a future course of action.\

Assume today is December 31, 2019. Imagine Works Inc. just paid a dividend of $1.25 per share at the end of 2019. The dividend is expected to grow at 15% per year for 3 years, after which time it is expected to grow at a constant rate of 6% annually. The company's cost of equity (rs) is 9.5%. Using the dividend growth model (allowing for nonconstant growth), what should be the price of the company's stock today (December 31, 2019)

Answers

Answer:

Value of stock = $47.99

Explanation:

The price of a stock using the dividend valuation model is the present value of the the future dividend expected from the stock discounted at the required rate of return.

Year                                   Present Value  

1    1.25× 1.15^1 × 1.095^(-1) =1.31

2    1.25× 1.15^2 × 1.095^(-2) = 1.38

3.    1.25× 1.15^3 × 1.095^(-3)= 1.45

Present value of Dividend in Year 4 and beyond

This will be done in two steps

Step 1

PV in year 3 terms  

= Dividend in year 4× (1.06)/(0.095-0.06)

1.25× 1.15^3 × 1.06/(0.095-0.06)=57.57

PV in year 0 terms =

PV in year 3 × 1.095^(-3)

=57.5759 × 1.095^(-3)= 43.852

Value of stock = 1.3  + 1.38 + 1.45  + 43.852= $47.99

Value of stock = $47.99

Madison Corporation's production cycle starts in the Processing Department. The following information is available for April: Units Work-in-process, April 1 (25% complete) 50,000 Total units in process during April 290,000 Work-in-process, April 30 (60% complete) 30,000 Materials are added at the beginning of the process in the Processing Department. What are the equivalent units of production for the month of April, assuming Madison uses the weighted-average method

Answers

Answer:

Equivalent units of production= 278,000

Explanation:

Giving the following information:

Total units in process during April 290,000

Work-in-process, April 30 (60% complete) 30,000

The weighted average method blends the costs and units of the previous period with the costs and units of the current period.

To calculate the equivalent units, we need to use the following formula:

Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production

Equivalent units of production= (290,000 - 30,000) + 30,000*0.6

Equivalent units of production= 278,000

On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 8%, resulting in Chin Company receiving cash of $9,594,415.
a. Journalize the entries to record the following:
1. Issuance of the bonds.
2. First semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment. (Round your answer to the nearest dollar.)
3. Second semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment. (Round your answer to the nearest dollar.)
Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond.
b. Determine the amount of the bond interest expense for the first year.
$
c. Why was the company able to issue the bonds for only $9,594,415 rather than for the face amount of $10,000,000.?

Answers

Answer:

Chin Company

Journal Entries

1. Issuance of the bonds:

Debit Cash $9,594,415

Debit Bond Discounts $405,585

Credit Bonds Liability $10,000,000

To record the issuance of the bonds at a discount.

2. June 30:

Debit Bond Interest Expense $383,777

Credit Cash $350,000

Credit Amortization of Bond Discount $33,777

To record the first interest payment and amortization of bond discount.

3. December 31:

Debit Bond Interest Expense $385,128

Credit Cash $350,000

Credit Amortization of Bond Discount $35,128

To record the second interest payment and amortization of bond discount.

b. The amount of the bond interest expense for the first year:

June 30: Bonds' Interest expense = $383,777

Dec. 31: Bonds' Interest expense = $385,128

Total bond interest expense for the first year = $768,905

c. Chin Company was able to issue the bonds for only $9,594,415 rather than for the face amount of $10,000,000 because the bonds were issued at a discount and not face value.  Bonds can be issued at face value, discount, or premium, depending on the prevailing investor's sentiments and the attractiveness of the bonds to investors.

Explanation:

a) Data and Calculations

Face value of bonds = $10 million

Discounted value (Cash receipt) = $9,594,415

Total amount of discount = $405,585

Bond's interest rate = 7%

Market yield = 8%

Bond maturity period = 5 years

Payment period = semiannually

Issuance of the bonds:

Cash $9,594,415 Bond Discounts $405,585 Bonds Liability $10,000,000

June 30:

Cash payment for interest = $350,000 ($10,000,000 * 3.5%)

Bonds' Interest expense = $383,777 ($9,594,415 * 4%)

Amortization of bond discount = $33,777 ($383,777 - $350,000)

Bond book value = $9,628,192 ($9,594,415 + $33,777)

December 31:

Cash payment for interest = $350,000 ($10,000,000 * 3.5%)

Bonds' Interest expense = $385,128 ($9,628,192 * 4%)

Amortization of bond discount = $35,128 ( $385,128 - $350,000)

Bond book value = $9,663,410 ($9,628,192 + $35,218)

Workers in Transportation and Logistics careers who believe in the benefits of a union are most likely to work for
local, state, or federal governments.
nonprofit organizations that use unions.
companies that use self-employed contractors.
private companies and businesses.
HELP PLEASE

Answers

Answer:

A.) local, state, or federal governments.

Explanation:

Workers in Transportation and Logistics careers who believe in the benefits of a union are most likely to work for local, state, or federal governments. Thus, option A is correct.

What is Transportation?

Transportation, the development of merchandise and people from one spot to another, and the different means by which such development is achieved.

Laborers in Transportation and Logistics vocations who have confidence in the advantages of an association are probably going to work for it. not-for-profit associations that utilize associations.

Laborers in operations vocations who put stock in the advantages of an association are probably going to work for neighborhood, state, or central legislatures.

Union have better work well-being securities and preferred paid leave over non-association laborers, and are safer practicing their freedoms in the workplace.

Therefore, option A is correct.

Learn more about Transportation, here:

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Labor unions are organizations of employees formed to protect and advance their members' interests by bargaining with management over job-related issues.

a. True
b. False

Answers

Answer:

I think that the correct answer is True

What is the amount of interest deduction allowed for the current year, assuming Marge Meyer incurred the following (assume no net investment income):Interest on loan used to purchase land for investment $18,000Interest on loan used to purchase personal residence $6,000Interest on loan used to purchase boat $500Interest on loan to purchase 100 shares of General Auto $3,000

Answers

Answer:

Marge Meyer

The amount of interest which Marge can deduct for the current year is:

= $27,000.

Explanation:

a) According to the IRS, the following categories of interest payments, incurred by Marge Meyer, are tax-deductible:

Interest on loan used to purchase personal residence $6,000  

Interest on loan used to purchase land for investment $18,000

Interest on loan to purchase 100 shares of General Auto $3,000

Total deductible interest expenses = $27,000

b) Note that interests for outstanding student loans are still tax-deductible.  However, interests for personal credit card, auto loan, and other personal consumer finance are not tax-deductible.

Unimart Precision Manufacturing

Beginning inventory
Merchandise $275,000
Finished goods $450,000
Cost of purchases 500,000
Cost of goods manufactured 900,000
Ending inventory
Merchandise 115,000
Finished goods 375,000

Required:
Compute cost of goods sold for each of these two companies for the year.

Answers

Answer:

Cost of goods sold for each of these two companies for the year :

Unimart  =  $660,000

Precision Manufacturing = $975,000

Explanation:

Note : I have attached the full question as image below.

Unimart

Beginning Merchandise Inventory                  $275,000

Add Purchases                                                 $500,000

Less Ending Merchandise Inventory               ($115,000)

Cost of Goods Sold                                          $660,000

Precision Manufacturing

Beginning Finished Goods Inventory            $450,000

Add Cost of Goods Manufactured                 $900,000

Less Ending Finished Goods Inventory        ($375,000)

Cost of Goods Sold                                         $975,000

Sales and Production Budgets Ultimate Audio Company manufactures two models of speakers, U500 and S1000. Based on the following production and sales data for June. U500 S1000 Estimated inventory (units), June 1 25,000 10,000 Desired inventory (units), June 30 30,000 15,000 Expected sales volume (units): Northeast Region 140,000 100,000 Southwest Region 160,000 125,000 Unit sales price $45 $80 a. Prepare a sales budget. Enter all amounts as positive numbers.

Answers

Answer:

Part a

Ultimate Audio Company

Sales Budget

For the Month Ending June 30

Product and Area         Unit Sales Volume  Unit Selling Price  Total Sales

Model U500 :

Northeast Region             140,000                       $45               $6,300,000

Southwest Region            160,000                       $45               $7,200,000

Total                                                                                            $13,500,000

Model U500 :

Northeast Region            100,000                       $80               $8,000,000

Southwest Region           125,000                       $80              $10,000,000

Total                                                                                           $18,000,000

Total Revenue from Sales                                                        $31,500,000

Part b

Ultimate Audio Company

Production Budget

For the Month Ending June 30

                                                                   Model U500     Model S1000

Expected Units to be Sold                           300,000             225,000

Add Desired Closing Inventory                      30,000                15,000

Total                                                               330,000             240,000

Less Desired Opening Inventory                  (25,000)              (10,000)

Total Production                                            305,000            230,000

Explanation:

Note : I have attached the complete question as images below !

A Sales Budget shows the Total Expected Revenue from sale of budgeted units.

     Total Revenue = Total Expected Units Sales x Selling Price Per Unit

A Production Budget shows the number of units to be produced to meet the Sales and Inventory targets

     Total Production = Expected Sales + Desired Closing Inventory - Desired Opening Inventory

ob 412 was one of the many jobs started and completed during the year. The job required $9,700 in direct materials and 45 hours of direct labor time at a total direct labor cost of $10,600. If the job contained four units and the company billed at 65% above the unit product cost on the job cost sheet, what price per unit would have been charged to the customer

Answers

Answer:

the price per unit that should be charged to the customer is $8,373.75

Explanation:

The computation of the price per unit that should be charged to the customer is shown below

Unit product cost = ($9,700 + $10,600) ÷ 4 units

= $5,075 per unit

Now the price per unit is

= Unit product cost × given percentage

= $5,075 × 165%

= $8,373.75

hence, the price per unit that should be charged to the customer is $8,373.75

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