Triptych Food Corp. Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1 Net Sales 6,350 5,000 Operating costs except depreciation and amortization 1,120 1,040 Depreciation and amortization 318 200 Total Operating Costs 1,438 1,240 Operating Income (or EBIT) 4,912 3,760 Less: Interest 663 489 Earnings before taxes (EBT) 4,249 3,271 Less: Taxes (25%) 1,062 818 Net Income 3,187 2,453 Calculate the profitability ratios of Triptych Food Corp. in the following table. Convert all calculations to a percentage rounded to two decimal places.

Answers

Answer 1

Question Completion:

The following shows Triptych Food Corp.'s income statement for the last two years. The company had assets of $10,575 million in the first year and $16,916 million in the second year. Common equity was equal to $5,625 million in the first year, 100% of earnings were paid out as dividends in the first year, and the firm did not issue new shares in the second year.

Answer:

Triptych Food Corp.

The profitability ratios of Triptych Food Corp.

                                               Year 2        Year 1

Net profit margin                   50.19%       49.06%

Return on total assets           18.84%       23.20%

Return on common equity    36.17%        43.61%

Basic earning power            29.04%       35.56%

Explanation:

a) Data and Calculations:

Income Statement For the Year Ending on December 31 (Millions of dollars)                                     Year 2         Year 1

Net Sales                                $6,350        $5,000

Operating costs except

depreciation and amortization 1,120           1,040

Depreciation and amortization   318             200

Total Operating Costs             1,438           1,240

Operating Income (or EBIT)    4,912           3,760

Less: Interest                            663               489

Earnings before taxes (EBT) 4,249            3,271

Less: Taxes (25%)                  1,062               818

Net Income                           $3,187         $2,453

Total assets                        $16,916        $10,575

Common equity                   $8,812         $5,625

Profitability ratios and formulas:

Net profit margin    = Net Income/Sales * 100

Return on total assets = Net Income/Total assets * 100

Return on common equity  = Net Income/Common Equity * 100

Basic earning power = EBIT/Total assets * 100

                                                      Year 2           Year 1

Net profit margin                            50.19%       49.06%

                            =  ($3,187/$6,350 * 100)  ($2,453/$5,000 * 100)

Return on total assets                    18.84%        23.20%

                            =  ($3,187/$16,916 * 100)  ($2,453/$10,575 * 100)

Return on common equity             36.17%        43.61%

                            =  ($3,187/$8,812 * 100)  ($2,453/$5,625 * 100)

Basic earning power                     29.04%       35.56%

                            =  ($4,912/$16,916 * 100)  ($3,760/$10,575 * 100)


Related Questions

ll else being equal, an increase in the yield to maturity of a bond will result in: a. a lower risk of suffering losses in the market values of the bond portfolios. b. a decrease in the rate of return at which the cash flows from the portfolios can be reinvested. c. an increase in the maturity value of the bond. d. a greater interest rate price risk on a long-term bond than on a short-term bond. e. an increase in the market price of the bon

Answers

Answer:

d. a greater interest rate price risk on a long-term bond than on a short-term bond.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.

Generally, most bonds with shorter maturity time respond less dramatically to changes in interest rates when compared to bonds having longer maturity.

This ultimately implies that, the risk associated with short bonds isn't really significant because their interest rates are less likely to change substantially within that short period of time unlike bonds with longer maturity.

Yield to maturity can be defined as the bond's total rate of return required by the secondary market while the coupon rate is defined as the annual interest of a bond divided by its face value.

For example, when a bond is issued at a par or face value of €1,000, at maturity the investor would be paid €1,000. But because bonds are being sold before its maturity, it would trade below its face value.

All else being equal (ceteris paribus), an increase in the yield to maturity of a bond will result in a greater interest rate price risk on a long-term bond than on a short-term bond.

An interest-rate risk can be defined as the risk associated with bond owners due to fluctuating interest rates. This risk has a direct level of impact on the value of fixed income securities such as bonds.

how can an oligopoly cause market failure​

Answers

Answer:

Inefficiency, instability and indeterminacy brought about by oligopoly may result in a market crash. The firm's supremacy is established as the capacity is established more and more, but little is produced in order to create artificial barrier to entry.

Explanation:

The promise of bigger profits gives oligopolists an incentive to cooperate. However, collusive oligopoly is inherently unstable, because the most efficient firms will be tempted to break ranks by cutting prices in order to increase market share.

Oligopoly causes market failure​  when the whole market is controlled by the suppliers by managing the prices of goods and services.

What is oligopoly?

Small numbers of suppliers control markets in an oligopoly. It is generally referred to as competitiveness among a small number of people and is a type of imperfect competition.

Because of this interconnection, market participants in an oligopolistic environment are not able to act independently of one another. As a result, these firms must determine whether to raise, drop, or keep a fixed price.

In an oligopoly, as there are few suppliers to decide the prices of goods and services which can lead to supply and demands of the goods sometimes, they can raise prices so high and sometimes too low depending on the factor of decision making.

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What could Vans do to keep its dealer network intact and supportive even after opening a corporate store in their market

Answers

Answer:

Vans

To keep its dealer network intact and supportive even after opening a corporate store in their market,

Vans should not compete directly with its dealer network stores, especially based on lower prices.  It must ensure that its prices are at similar levels with those offered by its dealers.

Explanation:

Vans can also differentiate the products in the corporate store from those offered by the dealer networks.  It can offer its products for bulker purchases than those offered by the dealers.  It can also inform its dealers that the corporate store in their market exists to offer close-by support to the dealers instead of competing with them.  The corporate store may be a way to undertaking extensive advertisements and publicity that will rub off favorably on the dealers.

difference between authority and responsibility​

Answers

Answer:

An authority is a power to give orders and ask your subordinates to perform certain duties. Authority can be given to a person by government’s executives, owner of an organization, or by the representatives of GOD.

An authority is a legitimate power to influence people to compel them to perform the task given to them. For example, a mob has the power to punish a criminal, but they don’t have legitimate authority to punish the criminal.

The authority lies in the hands of the law. Similarly, in an organization, the authority lies in the hands of a manager to get organizational tasks accomplished by his subordinates.

However, the authority of the manager is limited to a particular department of the organization. He has no authority on his employees outside the organization.

Authority is the consequence of the position of an individual in an organization. A person can only be at the superior position of the organization if he has authority; a person with no authority can never be on the top position of an organization.

Therefore, the degree of authority is highest at the top level, and its degree keeps on decreasing the levels of the organization. That means only a person at the top level can give orders to the people at a low level and can compel them to perform tasks given to them, and a person at lower level can’t give orders to the people at the top or his peers.

Authority can be of two types such as official authority (where authority is given to a person by the organization he works for), and other is a personal authority (where authority is given to a person because of his ability to influence people in the organization.

What is the Responsibility?

Being responsible

Responsibility is a moral duty or an obligation of an employee, whether he is a manager or subordinate to fulfill the task given to them. The responsibility starts as soon as the job is assigned to the employee and finish with the completion of the task.

The person is responsible for the consequence of his performance in the task. The responsibility comes with authority.

A manager is responsible for the accomplishment of the task. The responsibility moves upwards in the organization from a lower level of employees to the upper level of management.

The responsibility is originated from the superior-subordinate relationship in an organization. Because of this relationship, the manager can do a task from his subordinates with responsibility.

Difference between authority and responsibility

Difference between authority and responsibility

AUTHORITY RESPONSIBILITY

An authority is a power or right that a person gets because of his designation, role, or job. A responsibility is an obligation that an employee has to fulfill the work bestowed on him

An authority is the outcome of a formal position in an organization. A responsibility is the outcome of a superior-subordinate relationship.

An authority is a legal right given to a person. A responsibility is consequence of authority.

It is a delegation of authority. It is an assumption of responsibility.

The flow of authority is from the upper level to lower level. The flow of authority is from lower level to upper level.

Authority requires the ability to give orders. Responsibility requires the ability to follow orders.

The authority lasts for a long period of time. The responsibility ends as soon as the work bestowed on the employee is complete.

The objective of the authority is to make decisions and implement them effectively. The objective of responsibility is to perform duties effectively assigned by the superiors.

The common stock of Sweet Treats is selling for $54.65 per share. The company is expected to have an annual dividend increase of 3.7 percent indefinitely and pay a dividend of $4.30 in one year. What is the total return on this stock

Answers

Answer:

11.66%

Explanation:

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

54.05 = 4.3/ (r - 0.037)

4.3 / 54.05 = r - 0.037

11.66 = r

what kind of life insurance policy issued by mutual insurer provides a return od divisible surplus

Answers

Answer:

participating life insurance policy <- A mutual insurer issues life insurance policies that provide a return of divisible surplus.

brainliest would help :)

Equipment acquired on January 6 at a cost of $375,000 has an estimated useful life of 20 years
and an estimated residual value of $25,000.
A. What was the annual amount of depreciation for the Years 1-3 using the straight-line method
of depreciation?
B. What was the book value of the equipment on January 1 of Year 4?
C. Assuming that the equipment was sold on January 3 of Year 4 for $300,000, journalize the
entry to record the sale.
D. Assuming that the equipment had been sold on January 3 of Year 4 for $325,000 instead
of $300,000, journalize the entry to record the sale.

Answers

Answer:

A. Year 1 $17,500

Year 2 $17,500

Year 3 $17,500

B. $322,500

C. Dr Cash $300,000

Dr Accumulated Depreciation-Equipment $52,500

Dr Loss on disposal of Equipment $22,500

Cr Equipment $375,000

D. Dr Cash $325,000

Dr Accumulated Depreciation-Equipment $52,500

Cr Equipment $375,000

Cr Gain on disposal of Equipment $2,500

Explanation:

A. Calculation to determine What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation

Year 1 Depreciation expense Year 1=($375,000-$25,000)/20 years

Year 1 Depreciation expense Year=$17,500

Year 2 Depreciation expense Year=($375,000-$25,000)/20 years

Year 2 Depreciation expense Year=$17,500

Year 3 Depreciation expense Year=($375,000-$25,000)/20 years

Year 3 Depreciation expense Year=$17,500

Therefore the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation is :

Year 1 $17,500

Year 2 $17,500

Year 3 $17,500

B. Calculation to determine What was the book value of the equipment on January 1 of Year 4

Book value of Equipment=[$375,000-($17,500*3)]

Book value of Equipment=[$375,000-$52,500)

Book value of Equipment=$322,500

Therefore the book value of the equipment on January 1 of Year 4 is $322,500

C. Preparation of the journal entry to record the sale.

Jan. 3

Dr Cash $300,000

Accumulated Depreciation-Equipment $52,500

($17,500*3)

Dr Loss on disposal of Equipment $22,500

($322,500-$300,000)

Cr Equipment $375,000

(To record sales)

D. Preparation of the journal entry to record the sale.

Jan. 3

Dr Cash $325,000

Dr Accumulated Depreciation-Equipment $52,500

($17,500*3)

Cr Equipment $375,000

Cr Gain on disposal of Equipment $2,500

($325,000+$52,500-$375,000)

(To record sales)

Your company will generate $60,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 8.50 percent, what is the present value of the savings? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)Present value

Answers

Answer:

The answer is "[tex]\$307,110.81[/tex]"

Explanation:

Following are the calculation for the present value of the saving:

Present value[tex]= c\times \frac{1-[\frac{1}{(1+r)^t}]}{r}\\\\[/tex]

                      [tex]=\$60,000 \times \frac{1-[\frac{1}{(1+8.5\%)^7}]}{8.5\%}\\\\=\$60,000 \times 5.118514\\\\= \$307,110.81\\\\[/tex]

therefore, the present value of the savings is [tex]\$307,110.81[/tex]

What is one of the key phases of procurement processes that employ competitive bidding mechanisms?

Answers

Wisely oversee and screen outsiders with AI-driven bits of knowledge. Settle on sure choices about your outsider business connections. Get a free preliminary. Hazard Asessment. Information Management. In-Tool Reporting. Work process Management. Client Screening

Candle Corp. applies manufacturing overhead costs to products at a budgeted indirect-cost rate of $80 per direct manufacturing labor-hour. A retail outlet has requested a bid on a special order of a necklace. Estimates for this order include: Direct materials of $44,000; 300 direct manufacturing labor-hours at $25 per hour; and a 20% markup rate on total manufacturing costs. The bid price for this special order is ________.

Answers

Answer:

The total Bid price for special order is $90,600.

Explanation:

U.S.-based Myva Foods Inc. is expanding its business to the Asian market. Which of the following will NOT be effective in the company's efforts to expand to international markets?
A) paying close attention to the cultural differences between Myva's home country and the host countries.
B) finding new ways to blend the Four Ps of the marketing mix in the new market by making an effort to understand the local culture.
C) applying the same marketing mix Myva uses in the U.S.market to the Asian market.
D) putting more effort into planning strategies for the international markets,even though it has experienced success in the U.S.market.

Answers

Answer:

Myva Foods Inc.

The attempt that will NOT be effective in the company's efforts to expand to international markets is:

C) applying the same marketing mix Myva uses in the U.S. market to the Asian market.

Explanation:

Expanding to the Asian market requires a different marketing mix than Myva is currently using in its U.S. home market.  This means that if it applies the same marketing mix in the Asian market, it may likely remain unsuccessful.  The two markets have cultural differences.  So, it must find new ways to blend the Four Ps of Price, Product, Promotion and Place, to reflect its understanding of the Asian culture.

The attempt that will NOT be effective in the company's efforts to expand to international markets is: Applying the same marketing mix Myva uses in the U.S. market to the Asian market.

What is international market?

International market refers to any geographical region where a company conducts business that is outside the territorial boundaries of its company's home country.

With regards to the above, expanding to the Asian market requires a different marketing mix than Myva is currently using in its U.S. home market.  This is because if it applies the same marketing mix in the Asian market, it may likely remain unsuccessful.  

Also, the two markets have different culture. It must therefore find new ways to blend the Four Ps of Price, Product, Promotion and Place, to reflect its understanding of the Asian culture.

Hence, the attempt that will NOT be effective in the company's efforts to expand to international markets is: Applying the same marketing mix Myva uses in the U.S. market to the Asian market

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Economists generally agree that increases in the minimum wage increase employment.a. TRUEb. FALSE

Answers

Answer:

b. FALSE

Explanation:

Economists do not have a unanimous consensus that an increase in the minimum wage will cause greater employment opportunities. In fact, the opposite is the case because research shows that when the minimum wage is increased, there is less demand for low-skill workers. Given that these firms would be paying more, they would want to only employ those that have a high-skill set and thus save their organization of some funds. Since businesses are not charity organizations, they must make decisions that will benefit them.

If capital rents for $25 per unit per hour, labor can be hired for $9 per unit per hour, the level of total factor productivity is normalized to 1, and the firm is minimizing costs.(a) Determine whether the production function exhibits diminishing marginal returns to each input.

Answers

Answer:

Following are the solution to the given question:

Explanation:

The decrease of a marginal input return implies that its input is increasing by one unit, thereby decreasing its marginal input product.

Function of production

[tex]F(K, L) = AK^{\frac{3}{4}} L^{\frac{3}{4}}[/tex]

Its capital products subject (MPK) is derived by differentiating the factor of production from K.

[tex]MPK = \frac{3}{4}\times AK^{\frac{3}{4}} - 1L^{\frac{3}{4}}\\\\MPK = \frac{3}{4}AK^{-\frac{1}{4}}L^{\frac{3}{4}}\\\\MPK = \frac{3}{4}\times A\times (\frac{L^{\frac{3}{4}}}{K^{\frac{1}{4}}})[/tex]

Note: When a value is changed from numerator to denominator, then the power symbol shifts between positive to negative.

Since k is in the denominator, K decreases [tex]\frac{3}{4}\times A\times (\frac{L^{\frac{3}{4}}}{K^{\frac{1}{4}}})[/tex], and therefore MPK is reduced.

There's hence a decreased effective return on capital again for production function.

Its marginal labor product (MPL) is determined by distinguishing the manufacturing function from L.

[tex]MPL = (\frac{3}{4})\times AK^{\frac{3}{4}}L^{\frac{3}{4}}-1\\\\MPL = (\frac{3}{4})AK^{\frac{3}{4}}L^{-\frac{1}{4}}\\\\MPL = (\frac{3}{4})\times A\times (\frac{K^{\frac{3}{4}}}{L^{\frac{3}{4}}})[/tex]

The denominator of L reduces L [tex](\frac{3}{4})\times A\times (\frac{K^{\frac{3}{4}}}{L^{\frac{3}{4}}})[/tex] and therefore reduces MPL.

So there is a decreasing marginal return to labor in the production function.

The Engine Division of MurphyMotor Corporation uses 5,000 carburetors per month in its production of automotive engines. It presently buys all of the carburetors it needs from two outside suppliers at an average cost of $100. The Carburetor Division of MurphyMotor Corporation manufactures the exact type of carburetor that the Engine Division requires. The Carburetor Division is presently operating at its capacity of 15,000 units per month and sells all of its output to a foreign car manufacturer at $106 per unit. Its cost structure (on 15,000 units) is: Variable production costs $70 Variable selling costs 10 All fixed costs 10 Assume that the Carburetor Division would not incur any variable selling costs on units that are transferred internally. Refer to MurphyMotor Corporation. If the two divisions agree to transact with one another, corporate profits will:__________:
a. rise by $50,000 per month
b. drop by $30,000 per month
c. rise or fall by an amount that depends on the level of the transfer price
d. rise by $20,000 per month

Answers

Answer:

The correct option is d. rise by $20,000 per month.

Explanation:

Since it is assumed that the Carburetor Division would not incur any variable selling costs on units that are transferred internally, this implies that the variable selling costs is NOT relevant to the determination of the transfer price per unit to be used in calculating corporate profit. Therefore, the transfer price per unit can be calculated as follows:

Transfer price per unit = Price to foreign car manufacturer per unit = Price to foreign car manufacturer per unit - Variable selling costs per unit = $106 - $10 = $96

Rise in corporate profit per month = (Average cost per unit from the two outside suppliers - Transfer price per unit) * Number of carburetors used per month = ($100 - $96) * 5,000 = $20,000

This shows that if the two divisions agree to transact with one another, corporate profits will: rise by $20,000 per month.

Therefore, the correct option is d. rise by $20,000 per month.

The records of Quality Cut Steak Company list the following selected accounts for the year ended April 30, 2020 after all adjusting entries have been recorded. Prepare a multiple-step income statement in good form for the company. (Please note only selected accounts are listed, do not try to balance the excerpted trial balance).
Interest revenue 500 Accounts Payable 16,900
Inventory 45,300 Accounts Receivable 38,000
Notes Payable,
Long-term 52,000 Accumulated Depreciation
- Equipment 36,800
Salaries Payable 2,400 Arnold, Capital 42,200
Sales Revenue 292,000 Arnold, Withdrawals 17,000
Salaries Expense
(Selling) 21,400 Cash 7,400
Office Supplies 6,300 Cost of Merchandise
Sold 160,600
Unearned Rent 13,200 Equipment 130,000
Interest Expense 1,700 Interest Payable 1,000
Depreciation Expense
- Equipment (Admin) 1,300 Rent Expense (Admin) 9,600
Utilities Expense
(Admin) 4,300 Utilities Expense
(Selling) 10,600
Delivery Expense
(Selling) 3,500

Answers

Answer:

Quality Cut Steak Company

Quality Cut Steak Company

Multiple-step Income Statement for the year ended April 30, 2020

Sales Revenue                                  $292,000

Cost of Merchandise  Sold                  (160,600)

Gross profit                                         $131,400

Operating expenses:

Depreciation Expense -

 Equipment (Admin)             1,300

Rent Expense (Admin)         9,600

Utilities Expense  (Admin)    4,300

Salaries Expense  (Selling) 21,400

Utilities Expense  (Selling) 10,600

Delivery Expense  (Selling) 3,500

Total operating expenses                $50,700

Net operating income                      $80,700

Interest revenue                                      500  

Interest Expense                                  (1,700)

Net income before taxes                $79,500

Explanation:

a) Data and Calculations:

Accounts Payable 16,900

Cash 7,400

Accounts Receivable 38,000

Office Supplies 6,300  

Inventory 45,300

Equipment 130,000

Salaries Payable 2,400  

Unearned Rent 13,200

Interest Payable 1,000

Accumulated Depreciation - Equipment 36,800

Notes Payable,  Long-term 52,000

Arnold, Capital 42,200

Arnold, Withdrawals 17,000

Sales Revenue 292,000

Interest revenue 500

Cost of Merchandise  Sold 160,600

Interest Expense 1,700

Depreciation Expense - Equipment (Admin) 1,300

Rent Expense (Admin) 9,600

Utilities Expense  (Admin) 4,300

Salaries Expense  (Selling) 21,400

Utilities Expense  (Selling) 10,600

Delivery Expense  (Selling) 3,500

You just won the lottery. Congratulations! The jackpot is $60,000,000, paid in eight equal annual payments. The first payment on the lottery jackpot will be made today. In present value terms, you really win? Use an annual interest rate of 11.00%.

Answers

i want the answer i want the answer

Warner Company purchases $52,200 of raw materials on account, and it incurs $62,200 of factory labor costs. Supporting records show that (a) the Assembly Department used $31,900 of the raw materials and $44,200 of the factory labor, and (b) the Finishing Department used the remainder. Manufacturing overhead is assigned to departments on the basis of 160% of labor costs. g

Answers

Answer and Explanation:

The journal entry is given below:

Work in process - finishing department $28,800 ($62,200 - $44,200) × 160%

Work in process - assembly department $70,720 ($44,200 × 160%)

    To Manufacturing overhead $99,520

(Being the overhead allocated to assembly and finishing department)

Here the work in process is debited as it increased the assets and the manufacturing overhead is credited as it decreased the expesne

Imagine you are reviewing a business plan. In which section of the business plan would you expect to find the answers to the following questions?
Question Financial Statements Marketing & Sales Management Service or Product Line
How much money will the owners invest in the business start-up?
How will the salespeople for this business be compensated?
What are the unique features of this business’s merchandise?

Answers

Answer:

Hence,

The money which the owners invest in the business start-up is by Financial statements.

The salespeople for this business be compensated is by Marketing & sales management.

The unique features of this business’s merchandise are by Service or product line.

Explanation:

Financial statements show how much money will the owners invest in the business start-up.

Marketing & sales management shows how will the salespeople for this business be compensated.

Service or product line shows What are the unique features of this business’s merchandise

ou purchase one MBI July 127 call contract (equaling 100 shares) for a premium of $17. You hold the option until the expiration date, when MBI stock sells for $137 per share. You will realize a ______ on the investment.

Answers

Answer:

$700 profit

Explanation:

Exercise Price = $127

Expiration date price = $137

Profit for Calls buyer = $137 - $127 = $10

1 Call = 100 shares. So, the total profit = $10*100 = $1000

Buying price of one option = $17

Total buying price of the call option = $17*100 = $1,700

Total loss for the buyer = $1,700 - $1,000

Total loss for the buyer = $700

Note: Loss for the buyer = Profit for the seller. So, i will realize a $700 profit on the investment.

An individual who expects to receive more than $250 of income from sources other than wages meets the requirements for having to file quarterly estimated tax payments.

a. True
b. False

Answers

I am pretty sure it is A. True but I ain’t 100% sure

Which method of cash distribution carries more informational content when its announcement is made: the cash dividends or the stock repurchase

Answers

Answer:

cash dividend

Explanation:

According to signalling theory, payment of dividends communicate management's earnings forecast. Thus dividend payment provide information about the health of a company to its investors.

A product sells for $30 per unit and has variable costs of $18 per unit. The fixed costs are $720,000. If the variable costs per unit were to decrease to $15 per unit, fixed costs increase to $900,000, and the selling price does not change, break-even point in units would:

Answers

Answer:

remain the same

Explanation:

Breakeven quantity are the number of  units produced and sold at which net income is zero

Breakeven quantity = fixed cost / price – variable cost per unit

Initial Breakeven quantity = $720,000 / ($30 - $18) = 60,000

New Breakeven quantity = $900,000 / ($30 - $15) = 60,000

Breakeven point remained the same

Garcia Company issues 11.5%, 15-year bonds with a par value of $450,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 9.5%, which implies a selling price of 113 3/4.

Required:
Prepare the journal entry for the issuance of these bonds for cash on January 1.

Answers

Answer:

                                  Journal Entry

Date   Account Titles and Explanation         Debit          Credit

Jan 1   Cash                                                    $511,875

                Bond payable                                                  $450,000

                Premium on bond payable                             $61,875

                ($450,000*13.75%)

           (To record issue of bonds at premium)

A firm has a total market value of assets of $300 that includes $40 million of cash and 12 million shares outstanding. If the firm uses $30 million of its cash to repurchase shares, what is the new price per share

Answers

Answer: $25.00

Explanation:

Original share price:

= Value of assets / Shares outstanding

= 300 million/ 12 million

= $25.00

Company uses $30 million to buy shares which means that it buys:

= 30 million / 25

= 1,200,000 shares

New value of assets:

= 300 million - 30 million cash used

= $270 million

New price per share:

= 270 million / (12,000,000 - 1,200,000 shares)

= 270 million / 10,800,000

= $25.00

The following items are reported on a company's financial statements for 2015 and 2016:

($ in Thousands) 2015 2016
Cash $290 $300
Short-term investments 100 100
Receivables (net) 160 200
Inventory 140 160
Accounts payable 350 400
Sales 1740 1800
Cost of goods sold 1120 1200

Determine the following measures for 2016:
a. Current ratio
b. Accounts receivable turnover
c. Quick ratio
d. Inventory turnover

Answers

Answer:

See below

Explanation:

1. Current ratio

= Current asset / Current liabilities

Current asset = cash + marketable securities + accounts receivables + inventory

= $300 + $100 + $200 + $160

= $760

Current liabilities = accounts payable

Current liabilities = $400

Current ratio = $760 / $400

Current ratio = 1:9:1

2. Accounts receivable turnover

= Net credit sales / [(Beginning receivables + ending receivables) /2]

= $1,800 / [ ($160 + $200)/2]

= $1,800 / $180

= 10 times

3. Quick ratio

= Current asset - Inventory / Current liabilities

= $300 + $100 + $200 - $160 / $400

= $440 / $400

= 1:1:1

Tobin Supplies Company expects sales next year to be $520,000. Inventory and accounts receivable will increase $90,000 to accommodate this sales level. The company has a steady profit margin of 20 percent with a 30 percent dividend payout. How much external financing will Tobin Supplies Company have to seek

Answers

Answer:

$17,200

Explanation:

Calculation to determine How much external financing will Tobin Supplies Company have to seek

Net Income=[$520,000 x 20%]

Net Income = $104,000

Dividend Pay-out= [$104,000 x 30%]

Dividend Pay-out = $31,200

Additions to Retained Earnings = [$104,00 - $31,200]

Additions to Retained Earnings=$72,800

Now let determine the The External Financing Needed using this formula

The External Financing Needed = Increase in Assets – Additions to retained earnings

Let plug in the formula

The External Financing Needed= $90,000 - $72,800

The External Financing Needed= $17,200

Therefore The External Financing Needed is $17,200

Harding Enterprises has developed a new product called the Gillooly Shillelagh. The market demand for this product is given as follows:

Q= 240 - 4P

a. At what price is the price elasticity of demand equal to zero?
b. At what price is demand infinitely elastic?
c. At what price is the price elasticity of demand equal to one?
d. If the shillelagh is priced at $40, what is the point price elasticity of demand?

Answers

Answer:

0

$60

$30

-2

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded

Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases

Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.

the intercept of price on the inverse demand curve = 240 / 4 = $60

The intercept of quantity on the inverse demand curve = 240

Demand  is  infinitely  elastic  at  the  intercept  on the price axis = 0

 Demand is completely inelastic at the intercept on the quantity axis = 60 Demand is unit elastic at the half-way point between these two extremes (60 + 0) / 2  = 30

Point elastic demanded = (40/80) (-4) = -2

Founded nearly 50 years ago by Alfred Lester-Smith, Beautiful Clocks specializes in developing and marketing a diverse line of large ornamental clocks for the finest homes. Tastes have changed over the years, but the company has prospered by continually updating its product line to satisfy its affluent clientele. The Lester-Smith family continues to own a majority share of the company and the grandchildren of Alfred Lestef-Smith now hold several of the top managerial positions. One of these grandchildren is Meredith Lestef-Smith, the new CEO of the company. Meredith feels a great responsibility to maintain the family heritage with the company. She realizes that the company needs to continue to develop and market exciting new products. Since the 50th anniversary of the founding of the company is rapidly approaching, she has decided to select a particularly special new product to launch with great fanfare on this anniversary. But what should it be?

Answers

Answer:

Beautiful Clocks

It should be a large Golden (50th Year) Anniversary Ornamental Clock with gold-tinted background.

Explanation:

This type of clock will be handy for those who want to celebrate their friends' 50th birthdays and other anniversaries.  It will also immortalize the Beautiful Clock Company as an entity that lives with the time.  This clock will be exciting to its affluent clientele, who are always in celebration moods.

Why do we need an organizational structure?

Answers

Structure will give employees more clarity, help manage expectations, enable better decision-making and provide consistency.

The allowable increase for a constraint is Group of answer choices how much resource to use to get the optimal solution. the amount by which the resource can increase given shadow price. how many more units of resource to purchase to maximize profits. the amount by which the constraint coefficient can increase without changing the final optimal value.

Answers

Answer: the amount by which the resource can increase given shadow price.

Explanation:

The allowable increase refers to the amount by which the coefficient of the objective function can be increased without bringing about a change in the optimal basis.

The allowable increase for a constraint is the amount by which the resource can increase given shadow price. Therefore, the correct option is B.

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