A philanthropist is looking to invest in new start-up companies. She has decided to invest $200,000 in a company started by two inventors. It is decided the philanthropist will earn a 10% return on her investment and then the profits of the new company will be divided into the ratio 1:2:2. The philanthropist is represented by the first person in the ratio. Determine the amount the philanthropist receives and the amount each inventor receives if the profit is $78,000
Q: Blue Company began operations on January 1, 2024, adopting the conventional retail inventory system.…
A: An accounting technique used to determine the worth of a store's inventory is known as retail…
Q: 11 Ic raw 311 Rift, Incorporated is working on its cash budget for June. The budgeted beginning cash…
A: CASH BUDGET Cash Budget is estimated receipts and expenses for a definite period, which usually…
Q: Alex bought a used motorcycle from Sheldon's dealership for $28,000 to be paid in installments over…
A: Ans. Alex can try to find Sheldon and get his money from him, but he must pay SNL
Q: Assume a company had net income of $79,000 that included a gain on the sale of equipment of $4,000.…
A: Net cash provided by operating activities can be found on the statement of cash flows which shows…
Q: 6 Which of the following is more true of MANAGERIAL accounting systems than it is of FINANCIAL…
A: The process under which the financial transactions are identified and recorded in the books of…
Q: Garden Sales, Incorporated, sells garden supplies. Management is planning its cash needs for the…
A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…
Q: A company developed the following per-unit standards for its product: 2 pounds of direct materials…
A: Lets understand the basics. Direct material price variance is a variance between the rate at which…
Q: A project requires an initial investment (or you may say, 'cash outflow') of $225,000 and is…
A: Given, Cash outflow = Initial investment = $225,000 Cash inflows: Year 1 - $120,000 Year 2 -…
Q: Celine Co. generates sales of P 500,000. Variable cost is 25% and fixed cost isP 75,000. Compute:…
A: Introduction:- The following formula used to calculate as follows:- Degree of Operating Leverage =…
Q: Universal Suppliers Financial Highlights June 1-June 30 Cost Retail Beginning Inventory $306,371…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: At the end of its first year of operations, FDN Trading reported net income of $41,500. The owner's…
A: Owner's equity : Owner's equity at the end of the first year is calculated by adding all the…
Q: Concordia Corporation has 96,900 common shares that have been issued. It declares a 4% stock…
A: The share dividend is declared on the basis of market value of shares on declaration date. The share…
Q: Which of the following statements is NOT TRUE about a corporation?
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Investment question On January 1, Western Corporation purchased a 25% equity investment in Eastern…
A: The key advantage of an equity investment seems to be the prospect of increasing the original…
Q: The overall cost of the machine is P1,200,370. Molemi Group has P900,000 in the bank. The useful…
A: Financial statements serve the purpose of all stakeholders of the entity in general. The basic need…
Q: A division can sell externally for $73 per unit. Its variable manufacturing costs are $42 per unit,…
A: Transfer price means the price charged by one department from other department of the same company…
Q: Use the method of averages to find the approximate yield rate for the bond shown in the table below.…
A: Yield is the term which is used as the return that the investor would get from the investment such…
Q: Laurier Ltd. purchased a delivery truck on May 1, 2021, at a cost of $77,160. The truck is expected…
A: ANSWER Purchase cost of delivery truck = 77160 purchase date = May 1,2021…
Q: You have been hired by Johnson and Johnson Corp. this year. Your supervisor approaches you and need…
A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: Use the following selected data from Business Solutions's income statement for the three months…
A: The gross margin is calculated as difference between sales and cost of goods sold. The gross profit…
Q: FDN Trading is renting out a portion of its building. On July 1, 2022, it received a one-year…
A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…
Q: X, Y and Z were partners sharing profits in the proportion of 3:2:1. Y Retires from the business.…
A: A partnership is a kind of business a formal agreement is made between two or more peoples to share…
Q: Calculate the missing information for the purchase. Item Selling Price (in $) Sales Tax Rate Sales…
A: Introduction:- Formula for purchase price after sales tax Purchase price = selling price × (1+r )
Q: FDN Trading signs a three-month note payable to help finance the increase in demand for the…
A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…
Q: X Inc. owns 70% of Y Inc. During 2020, X Inc. sold inventory to Y for $10,000. Half of this…
A: Unrealised profit on sales from subsidiary to parent company, are accounted for Non Controlling…
Q: our company is following January to December as accounting year. On 1 July, you paid Rs. 6 million…
A: The prepaid expense is the amount that is not due but has been paid by the company. It is considered…
Q: 1. MadDog Inc. owns equipment for which it paid $85 million. At the end of 2020, it had accumulated…
A: a. Calculation of Impairment Loss of MadDog Inc. 1. Carrying Value of Equipment at the end of…
Q: Sunland Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an…
A: ANSWER Inventory should be valued at lower of cost or market value. Cost per unit is already…
Q: 6 Fill in the blanks. In case of a corporation, equity is subordinate to liabilities so that,…
A: In the case of a corporation, equity is subordinate to liabilities so that, when a corporation is…
Q: On March 31, 2024, Wolfson Corporation acquired all of the outstanding common stock of Barney…
A: ANSWER THE PURCHASE PRICE PAID BY THE COMPANY FOR ACQUISITION OF ANOTHER COMPANY IS MORE THAN THE…
Q: he Saint Lucia Blood Bank, a private charity partly supported by government grants, is located on…
A: The flexible budget performance report is prepared to compare the actual results with flexible…
Q: How do you get 21.73
A: Weighted average method is the method under which cost of goods sold and cost of ending inventory is…
Q: Ma1. Nina and Sue form an equal partnership during the current year. They agree to share profits…
A: a. Is any gain or loss recognized on the formation of the partnership? There is no gain or loss…
Q: (100) Assets 110 Cash 120 Accounts Receivable - Bob Wilson 130 Supplies (200) Liabilities 210…
A: General ledger is the account summary which is prepared after passing or recording the journal…
Q: When a company uses put options to hedge foreign currency firm commitments, the accounting is…
A: Let's say a company enters into a foreign currency option contract committing to buy Euros at a…
Q: James, the production manager, was pleased at the company's income statement results. Actual DL cost…
A: Labor rate variance:Labor Rate Variance is the difference between what the actual labor rate per…
Q: Mr. Lucas has the opportunity to invest $5,000 today, earning annual interest of 10% compounded…
A: Time value of money :— According to this concept, value of money in present day is greater than the…
Q: Williams Optical Inc. is considering a new lean product cell. The present manufacturing approach…
A: Solution: a)Under Present approach: Value added time = Process time, Step 1 + Process time, Step 2…
Q: In an essay of 1,200 to 1,500 words, discuss government fraud and mismanagement and how pervasive…
A: GOVERNMENT FRAUD Fraud is a deliberate act of deception intended to give the offender an…
Q: Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras.…
A: Estimated conversion cost = $3,678,300 Estimated unit production = 18,300
Q: Selected information regarding a company's most recent quarter follows (all data in thousa Beginning…
A: Total Manufacturing Cost :— It is the total cost incurred in the manufacturing of product during the…
Q: Sinking Fund method and c) Double Declining Balance method
A: The amount of repairs is not included in amount to be considered for depreciation.
Q: On September 1, Knack Company signed a $50,000, 90-day, 5% note payable with Central Savings Bank.…
A: Notes Payable - Notes Payable is an instrument issued by the payer to the receiver. It is a…
Q: Jake's Roof Repair has provided the following data concerning its costs Cost per Repair Hour $15.00…
A: Variable Cost :— It is the cost that changes with change in cost driver. Variable cost per cost…
Q: Assume a company’s balance sheet showed beginning and ending balances in the Long-Term Investments…
A: Ending balance of investments = Beginning balance + Purchases - Investments sold Purchases = Ending…
Q: Discuss the Botswana/ Maseru model of corporate governance
A: The Botswana/Maseru Model of Corporate Governance is a holistic approach to corporate governance…
Q: All 501(c)(3) charities filing Form 990 must include which of the following schedules? Schedule…
A: A nonprofit organization is an organization that runs for the purpose of social welfare, and not for…
Q: Generally, if the owner of an IRA dies after December 31, 2019, and before beginning required…
A: As per the SECURE ACT, 2019 if an IRA owner dies after December 31, 2019, and whether required…
Q: Accounts Payable 1,900 Notes Payable 4,300 Common Stock 1,000 Retained Earnings 12,940…
A: Solution... Total liabilities includes current liabilities and the non current liabilities .
Q: An assembly department had 230 units as work in process at the beginning of the month. These units…
A: FIFO Method :— Under this method, Total equivalent units is calculated by adding equivalent units…
Step by step
Solved in 2 steps
- Mina, who is single, would like to contribute $6,000 to her Roth IRA. Her AGI is $130,000. What is the maximum amount that Mina can contribute? Show your answer in Microsoft Excel.Sarah Bishop, having become a very successful engineer, wishes to start an endowment at UTM that will provide scholarships of $10,000 per year to four engineering students beginning in Year 6 and continuing indefinitely. Determine the amount Sarah must donate now if the university earns 10% per year on endowment funds.Olivia sets up her home design company as a corporation. She expects to generate cash flows of $500,000 per year. She will fund the corporation with $4,500,000 and the corporation will be funded entirely with equity. Assume Olivia faces a tax rate of 30%. Using a discount rate of 8%, what is the NPV of the company? Responses -$125,000 -$125,000 $0 $0 $1,750,000 $1,750,000 -$1,750,000
- Kari wants to make a $50,000 charitable contribution to a school by gifting appreciated stock. She has 23,000 shares of Aviator Corp Stock at a cost basis of $20/share and with a current market value of $50/share. Kari has a marginal tax rate of 35% and an average tax rate of 23%. The capital gains tax is 15%. (Show all work) A. How many shares does she need to gift to the school? B. How much is her capital gains tax on this gift? C. What is her tax savings from making this contribution?Atita plans to gift $150,000 to her daughters as a gift in the future. She thinks it will help her daughter fulfil her dreams when she reaches her age to marry. Assume her daughter is 3 years old and may get married in her 20s. Assume that Atita has $30,000 and wishes to invest that in a financial asset with a 9% rate of return per annum. Required: How would you define the amount of $30 000 and $150 000 in terms of the time value of money? ANSWER a (i): (answer box will enlarge as you enter your response) How long will she have to wait until she reaches the goal of $150 000? ANSWER a (ii): Mark will receive $13,500 from his parent at the end of each year for five years. He plans to invest them in a financial asset with an interest rate of 7.5%. How much money…THIS QUESTION HAS TWO PARTS After a retiring from a successful business career, you would like to make a donation to your university. This donation will go into the school's endowment pool and the returns generated from the donation will support the salary of a new professor in the business school on a perpetual basis. The university expects to earn returns of 5.5% on its endowment pool. You may assume that any distributions to support the salary will be made annually. Part A) You can make a donation today (t=0) in the amount of $1,800,000. The first cash flow distribution from your donation to cover the professor's salary will take place in one year (at t=1). Which of the following is closest to the annual salary payment that can be made as a result of your donation? OA. $72,000 OB. $1,800,000 OC. $99,000 OD. $327,273 Part B) After further discussions, the university determines that the employment agreement with the new professor will call for annual salary increases of 2%. Given this…
- THIS QUESTION HAS TWO PARTS After a retiring from a successful business career, you would like to make a donation to your university. This donation will go into the school's endowment pool and the returns generated from the donation will support the salary of a new professor in the business school on a perpetual basis. The university expects to earn returns of 5.5% on its endowment pool. You may assume that any distributions to support the salary will be made annually. Part A) You can make a donation today (t=0) in the amount of $2,500,000. The first cash flow distribution from your donation to cover the professor's salary will take place in one year (at t=1). Which of the following is closest to the annual salary payment that can be made as a result of your donation? A. $137,500 B. $454,545 C. $2,500,000 D. $100,000 Part B) After further discussions, the university determines that the employment agreement with the new professor will call for annual salary increases of 2%. Given this…Ahmed for Mujeeb Leasing for several years. Muscat Leasing is a company that leases high-tech medical equipment to hospitals. Ahmed for Mujeeb have decided that, with their financial expertise, they might start their own company to provide consulting services to individuals interested in leasing equipment. One form of organization they are considering is a partnership. If they start a partnership, each individual plan to contribute OMR50,000 in cash. In addition, Ahmed has a used computer that originally cost OMR370, which he intends to invest in the partnership. The computer has a present market value of OMR150.Although both Ahmed for Mujeeb are financial wizards, they do not know a great deal about how a partnership operates. As a result, they have come to you for advice. What type of document is needed for a partnership, and what should this document contain?Kaylee Fernandez came into some money from her trust fund and now has $120,000. Kaylee’s colleagues have always raved about earning a lot of money from investing in stocks and she is now interested in investing as well. She consulted an investment specialist and decided that she wants to buy some stocks in a healthcare company and a high-tech company. Kaylee has also decided that the proportion of the dollar amount she invests in the healthcare company relative to the high-tech company should at least be at least one-third, but that she should not invest more than twice the amount in the high-tech company that she invests in the healthcare company. The price per share of stock in the healthcare company is $175. The unit investment in the high-tech company is $208. The average annual return in the healthcare company during the last 3 years has been 17%. On the other hand, the high-tech company fund has been 28% for the same time period. Kaylee wants to determine a good investment…
- Jean invests $1000 in Year 1 in a socially responsible fund, and doubles the amount each year after that (so the investment is $1000, 2000, …). (a) If she does this for 10 years, and the investment pays 4% annual interest, what is the future worth of her investment? (b) What are socially/ethically responsible investment funds? How do they differ from other types of investments? Why do people invest in them?A wealthy graduate of a local university wants to establish a scholarship to cover the full cost of one student each year in perpetuity at her university. To adequately prepare for the administration of the scholarship, the university will begin awarding it starting in three years. The estimated full cost of one student this year is $38,000 and is expected to stay constant in real terms in the future. If the scholarship is invested to earn an annual real return of 5 percent, how much must the donor contribute today to fully fund the scholarship?Suppose Clinton decides to use $9,500 currently held as savings to make a financial investment. One method of making a financial investment is the purchase of stock or bonds from a private company. Suppose Arcadia, a biomedical research firm, is selling stocks to raise money for a new lab. This practice is called finance. Buying a share of Arcadia stock would give Clinton the firm. In the event that Arcadia runs into financial difficulty, will be paid first. Suppose Clinton chooses to buy 250 shares of Arcadia stock. Which of the following statements are correct? Check all that apply. The Dow Jones Industrial Average is an example of a stock exchange where he can purchase Arcadia stock. Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Clinton's shares to decline. The price of his shares will rise if Arcadia issues additional shares of stock. Alternatively, Clinton could undertake their financial investment by purchasing bonds…