If a firms expected sales are $256,000 and its break-even sales are $193,000, what will the margin of safety in dollars be?
Q: Computing Ending Inventory using Dollar-Value LIFO On January 1, 2020, Benn Company changed from…
A: GIVEN Computing Ending Inventory using Dollar-Value LIFO On January 1, 2020, Benn Company changed…
Q: Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects…
A: GIVEN Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas…
Q: Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual…
A: Formula: Interest amount = Accounts payable amount x Interest rate x Time period
Q: ing by Doing E
A: Market demand function : Q = 780 - p p = 780 - Q Where ,Q = Q1+ Q2+ Q3 p = 780 - ( Q1 + Q2 + Q3 )…
Q: Debits always increase which accounts?
A: Introduction: Accounts: Accounts are classified in to 2 types: 1 ) Debit account 2 ) Credit account.…
Q: List the five basic steps in calculate the full production cost per unit using the ABC method
A: ABC is a modern approach whereby overhead costs are bifurcated based on the utilization of…
Q: a. Compute the net cost of investment in the new machine for decision making purposes. b. Assuming…
A: SN Particulars Amount A New Machine Cost (Purchase Cost) P 50,000 B Cost incurred for bringing…
Q: A corporation commences operations on January 1, 2019. It has the following account balances at…
A: Introduction: Net Assets: Any Asset having economic resource called as Assets. Assets are of two…
Q: On December 31, 2021, Maroon Co. leased an equipment with a cot of P2,000,000 to Green Co. for 5…
A:
Q: what problems do you see with the rule requiring a balanced cyclically adjusted budget?
A: The cyclically adjusted budget balance is known as the full employment budget . the basically…
Q: Terms Using the information given in the table, find Cash Discount/Dating cash discount due date.…
A: Due date is the date at which the payment has to be made to the creditor or on which date it is…
Q: How would a Dividend that is declared but not yet paid be treated at year end for financial…
A: Dividends are the amounts which are paid in consideration to the amount contributed in the company.…
Q: You have just completed a $18,000 feasibility study for a new coffee shop in some retail space you…
A: Free cash flows include only those revenues and expenses which are of cash nature. Non-cash nature…
Q: Which of the following describes a corporation?
A: GIVEN the following describes a corporation is
Q: Optimal cash balance. The Madatung Corporation plans to have P1 million I steady cash outlays for…
A: GIVEN The Madatung Corporation plans to have P1 million in steady cash outlays for next year. The…
Q: drive at Php 320 is equal to 7/5th of the profit obtained by selling the same flash drive at Php…
A: The cost price can be calculated by comparing the profits under the two alternatives.
Q: Units Unit Cost 1,800 $10.00 16,200 $10.40 5,400 $11.00 2,700 $12.00 Date Jan. 1 Inventory Jan. 3…
A: GIVEN Undew Inc.'s inventory records showed the following data for an item it sells regularly.…
Q: uestion Content Area Cost of Goods Sold Budget Play-Disc makes Frisbee-type plastic discs. Each…
A: The cost of goods manufactured is the sum of the cost of direct labor used, the cost of direct…
Q: t is very important to record business transactions correctly. If the recording of transactions in…
A: Bookkeeping means preparation and maintenance of books of accounts for the business operations of an…
Q: A corporation has the following account balances on December 31, 2019: Accounts 4,200 receivable…
A: Introduction: Income statement: All revenues and expenses are to be shown in income statement. It…
Q: What is standard cost ? Explain four purposes of standard costing. NB: This concept should be in…
A: Solution:- Standard cost means as follows under:-
Q: Rooney Company sells lamps and other lighting fixtures. The purchasing department manager prepared…
A: Inventory purchase budget: It is a budget prepared by the company for knowing the inventory needs in…
Q: Which of the following is not a general ledger account? Net income Revenue Dividends Unearned…
A: General ledger account is used to prepare financial statement in a proper way.One can't imagine…
Q: At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash…
A: Formula: Bad debts expense (sales method) = Sales x uncollectible % Bad debts expense (Accounts…
Q: . What amont of money is equivalent to receiving ₱ 10,000 three years from today, if interest is…
A: Present value is the value which has been computed by the company are by the investor when the…
Q: Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities…
A:
Q: Sheila Company is engaged in the manufacture of chemicals which it exports to other countries. On…
A: As per IAS -10 Events after reporting period are the events which take place in between date of…
Q: Montello Inc. purchases a delivery truck for $14,000. The truck has a salvage value of $2,000 and is…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: On January 1, 2011, Mormont Company issued 9% bonds in the face amount of P2,500,000 which mature on…
A: Premium (discount) upon issuance of bonds = Issue value of the bonds - Face value of the bonds…
Q: 2. Pinky Company plans to buy a new machine to increase its plant's productive capacity. The new…
A: While calculating net income it also consider non cash expenses like depreciation, profit and loss…
Q: Mr. X, single, died in Year 2020 leaving the following properties: Family house and lot Car Cash in…
A: Net Estate: - net estate is the total of net worth after deducting the administrative cost. it is…
Q: Preliminary plans are underway for construction of a new stadium for a major league baseball team.…
A: Solution:- Introduction:- Break-even point means total revenues equals to total expenses At…
Q: Grabie, is a transport network company operating in Metro Manila with a valid Certificate of Public…
A: Here discuss about the tax liability for certified public convenience (CPC) which incurred 3% taxes…
Q: As per APES 110, an auditor may not: Select one: perform advisory services for any audit client be a…
A: Auditor is the professional who audits or examines the books and financial reports of an entity.
Q: A company purchased a building worth $500,000 by paying $50,000 in cash and acquiring a bank loan…
A: Following journal entries will be passed to record purchase of assets and bank loan obtained : 1.…
Q: REQUIREMENTS: 1. What is the net lease receivable of the lessor at the commencement of the lease?
A: Lease refers to a contract between two parties under which one party who is the real owner of an…
Q: When Job 117 was completed, direct materials totaled $9,518; direct labor, $14,467; and factory…
A: Formula used: Total cost = Direct materials + Direct labor + Factory overhead Summation of direct…
Q: X CengageNOWv2 | Online teachin X +…
A: Solution... Current assets = Accounts payable + accrued liability + note payable = $32,558 +…
Q: Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities…
A:
Q: Compute the ending inventory on a dollar-value LIFO basis for each year, 2020 through 2023.
A: LIFO is the method which has been used by the company in determining the valuation of the goods and…
Q: Cutter Enterprises purchased equipment for $57,000 on January 1, 2021. The equipment is expected to…
A: Lets understand the basics. In double declining balance method, depreciation is calculate at the…
Q: Required information Problem 11-1A (Algo) Short-term notes payable transactions and entries LO P1…
A: The question is based on the concept of Financial Accounting.
Q: Using the following information, prepare a bank reconciliatio Bank balance: $7,651 Book balance:…
A: The practice of comparing the balances in such an institution's account holder account to the…
Q: Andy Company records its purchases at gross but wishes to change to recording purchases at net.…
A: WHEN PURCHASES ARE RECORDED USING THE NET METHOD , PURCHASES AND ACCOUNTS PAYABLE ARE RECORDED AT AN…
Q: 2. A corporation's record show: Normal Income Tax per Quarter Taxes Withheld per Excess MCIT Prior…
A: Here to discuss the calculation of tax due and impact in the withhold taxes in the total due in the…
Q: Bilmoco Company purchased a new machine on a deferred payment basis. A down-payment of P100,000 was…
A: Cost of machine means the purchase price of machine including installation cost , non refundable…
Q: Which of the following is NOT a component of Accumulated Other Comprehensive Income? A. Gains or…
A: The correct option with proper explanation are as follows.
Q: 1. Question Content Area Sales Budget FlashKick Company manufactures and sells soccer balls for…
A: Budgeting is an important tool for the cost managers of an entity it helps to forecast the…
Q: Pedro Reyes purchased a delivery vehicle on January 1, 2016 amounting to PHP250,000. It is estimated…
A: Lets understand the basics. Depreciation is a reduction in value of asset due to wear and tear,…
Q: 38. The company decides to purchase the part for P8 per unit from another supplier and rents its…
A: Increase (decrease) in costs on purchasing from supplier = (Purchase costs per unit - Relevant…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Finally, assume that the new product line isexpected to decrease sales of the firm’s otherlines by $50,000 per year. Should this be considered in the analysis? If so, how?assume that $1 one year from now is worth $0.90 today, and $1 two years from now is worth $0.75 today. Dollars can be bought and sold at these prices. There are no transaction costs.A firm anticipates that it will have a surplus of dollars one year from now but a shortage two years from now. The present value of the surplus of dollars that is forecast for one year from now is $2,000. What is the amount of the surplus in terms of dollars available in one year?You are trying to value Lucid Motors using comparables analysis. You believe Lucid Motors should be valued similarly to TSLA and that TSLA is the only reasonable comparison. TSLA is currently trading at 10.7x Enterprise Value/Revenue. Lucid is expected to generate $2.2bn in revenues this year. How mucb should you be willing to value Lucid in terms of enterprise Value (assuming market is correct)? $20.6bn $23.5bn $15.4 bn $21.7 bn
- Consider a company that pays out all its earnings (i.e., the payout ratio = 1 or plowback/retention ratio=0). The required return for the firm is 13%. Compute the intrinsic P/E if its ROE is 15%. Compute the intrinsic P/E if its ROE is 20%. Discuss why your answers to parts (a) and (b) differ or do not differ from one another. Suppose that the company’s ROE is 13%. Compute its intrinsic P/E value. Would the answer to part (d) change if the company retained half of its earnings instead of paying all of them out? Discuss why or why not.A project is thought to have a 0.55 probability of making a profit of P400,000 and a 0.45 probability of making a profit of P200,000. What is the change in expected profit if the probabilities actually turn out to be 0.60 and 0.40, respectively?A company in country X with currency XSD is analyzing a potential investment in country Y with currency YSD. The best estimate is that YSD will be devalued in the international markets at an average of 3%. If the MARR of this company in country X is 23% what is the MARR that the company should use in country Y?
- Required: 1. How many units would the company need to sell to earn a profit before taxes of $10,000? 2. If the company achieves its projections, what will be its degree of operating leverage?Assuming costs vary with sales and a 20 percent increase in sales is projected, create the pro forma income statement. Create a pro forma Balance Sheet. All items will vary with sales. What is the plug variable in order for this to balance? Suppose no dividend is planned to be issued next year. What is the plug variable?For a certain investment project, the net present worth can be expressed as functions of sales price (X) and variable production cost Y of PW= 12,550 (2X - Y) - 8000. The base values for X and Y arc $25 and $15, respectively. If the sales price is increased 15% over the base price, how much change in NPW can be expected?(a) 10% (b) 20% (c) 13.68% (d) 21.82%
- A project currently generates sales of $17 million, variable costs equal 40% of sales, and fixed costs are $3.4 million. The firm’s tax rate is 30%. Assume all sales and expenses are cash items. a. What are the effects on cash flow, if sales increase from $17 million to $18.7 million? (Input the amount as positive value. Enter your answer in dollars not in millions.) Req cash flow by b. What are the effects on cash flow, if variable costs increase to 45% of sales? (Input the amount as positive value. Enter your answer in dollars not in millions.) Req cash flow byYour business plan for your proposed start-up firm envisions first-year revenues of $180,000, fixed costs of $60,000, and variable costs equal to one-third of revenue. a. What are expected profits based on these expectations? (Round your answer to nearest whole number.) Expected profit b. What is the degree of operating leverage based on the estimate of fixed costs and expected profits? (Round your answer to 2 decimal places.) Degree of operating leverage c. If sales are 10% below expectation, what will be the percentage decrease in profits? (Round your answer to nearest whole number.) Decrease in profits %Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Brandtly's stock. The pension fund manager has estimated Brandtly's free cash flows for the next 4 years as follows: $2 million, $7 million, $12 million, and $14 million. After the fourth year, free cash flow is projected to grow at a constant 5%. Brandtly's WACC is 13%, the market value of its debt and preferred stock totals $50 million, the firm has $15 million in nonoperating assets, and it has 12 million shares of common stock outstanding. a. What is the present value of the free cash flows projected during the next 4 years? Do not round intermediate calculations. Round your answer to the nearest dollar. Write out your answers completely. For example, 13 million should be entered as 13,000,000. $ 51339694.5