Income statement format; single step and multiple step [LO4-1, 4-3, 4-5] The following is a partial trial balance for General Lighting Corporation as of December 31, 2021: Account Title Debits Credits Sales revenue 3,350,000 Interest revenue 100,000 Loss on sale of investments 32,500 Cost of goods sold 1,390,000 Loss on inventory write-down (obsolescence) 400,000 Selling expense 500,000 General and administrative expense 250,000 Interest expense 99,000 There were 300,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is 25%.Required Prepare a single-step income statement for 2018, including EPS disclosures
Answers
Answer:
Net income = $583,875
Earning Per Share (EPS) = $1.95 per share.
Explanation:
A single step income statement can be described as a financial statement that do not break revenues and expenses into there respective different categories, but only use one column each for revenue and expenses.
For this question, a single-step income statement for 2021 can be prepared as follows:
Note: Year 2021 is used as the correct year since it is metioned twice in the question against 2018 that was erroneously mentioned once.
General Lighting Corporation
Income Statement for December 31, 2021
Details $
Revenues:
Sales revenue 3,350,000
Interest revenue 100,000
Total revenue (A) 3,450,000
Expenses:
Cost of goods sold 1,390,000
Selling expense 500,000
General and administrative expense 250,000
Interest expense 99,000
Loss on sale of investments 32,500
Loss on inventory write-down (obsol.) 400,000
Total expenses (B) 2,671,500
Income before tax (A - B) 778,500
Tax (25% * $778,500) (194,625)
Net income 583,875
EPS (583,875 / 300,000) 1.95
Related Questions
For Crane Company at a sales level of 4000 units, sales is $65000, variable expenses total $40000, and fixed expenses are $21000. What is the contribution margin per unit
Answers
Answer:
Unitary contribution margin= $6.25
Explanation:
Giving the following information:
For Crane Company at a sales level of 4000 units, sales is $65000, variable expenses total $40000
Contribution margin= selling price - unitary variable cost
First, we calculate the total contribution margin:
total contribution margin= 65,000 - 40,000
total contribution margin= 25,000
Now, the unitary contribution margin:
unitary contribution margin= 25,000/4,000
unitary contribution margin= $6.25
Lucas is the director of a local preschool. He oversees making sure that the staff is qualified to teach, that the curriculum covers everything a
preschooler needs, and that the facility runs smoothly day to day. The pathway in the Education and Training Cluster that Lucas's career falls into
is
O A Teaching and Training
B.
Administration and Administrative
O C.
Professional Support Services
OD.
Science & Mathematics
Answers
The pathway in the Education and Training Cluster that Lucas's career falls into is Administration and Administrative.
Who is an administrator?
This is the term that is used to refer to the person that is in a business that has the specific function that would have to oversee some of the important functions that take place in an organization. The administrator is a person that has to take care of the business functions and also ensure that the business is running very smoothly even in the school system.
With this, the job of the administrator in the schools is to ensure that the school is being run smoothly. That is all that is needed for teaching to be effective and all that are able to teach the students in the best ways are employed.
Hence we would say that Lucas falls in the Administration and Administrative cluster of the school system.
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B. Administration and Administrative.
k12 career 2.10 quiz
Using the readings for this unit as a guide, discuss what you see as the role of ethics as it pertains to management and managers. Does management, in your view, help shape the values and ethics of an organization? What about an organization’s sustainability efforts and commitment? On whom does the responsibility to consider sustainability fall? Is employee behavior, ethical or not, a by-product of the organization's ethical climate? What ideally is the manager's role in helping to create and maintain organizational integrity?
Answers
Managers must be committed to making decisions in accordance with core values such as honesty, integrity, respect for others, taking responsibility for their actions and being accountable for them. To be an effective, ethical leader, managers must learn how to spot ethical issues in their organization.
Social responsibility is a business's duty to make ethical decisions that positively impact society. Organizations need to consider how their actions affect communities to create long-lasting trusting relationships. In order to be socially responsible, companies must strictly follow their codes of ethics.
What does this part of the safety manual specifically indicate about workplace safety? Providing proper safety gear is a priority for this business. This company stresses the importance of using tools correctly. This company has set up regular inspection checks for all equipment. Employees receive training on the use of all equipment at this warehouse.
Answers
Answer:
b
Explanation:
Answer:
B. This company stresses the importance of using tools correctly.
Explanation:
Happy holidays! Right on ED2021, goodluck!
illustrate the effect that a decrease in a price of milk (an input of ice cream) would have on the market for ice cream.
Answers
A decrease in the price of milk would lead to a decrease in the production cost of ice cream and an increase in its supply, causing a decrease in the equilibrium price of ice cream and an increase in its quantity demanded and supplied.
A decrease in the price of milk is likely to have a direct effect on the market for ice cream. Milk is a key ingredient in the production of ice cream, and so a decrease in the price of milk would lead to a decrease in the production cost of ice cream. The impact of this decrease in production cost will result in an increase in the supply of ice cream. The supply curve will shift to the right, showing that more ice cream is available for sale at any given price.
This means that the equilibrium price of ice cream will decrease because suppliers are willing to sell more ice cream at lower prices due to lower production costs. As a result, consumers would demand more ice cream because they would be able to purchase it at a lower price. This increase in demand would cause the demand curve to shift to the right, further increasing the equilibrium quantity of ice cream traded in the market.
Therefore, a decrease in the price of milk would lead to a decrease in the production cost of ice cream and an increase in its supply, causing a decrease in the equilibrium price of ice cream and an increase in its quantity demanded and supplied.
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critcism of modern management theory
Answers
Critics argue modern management theory is rigid, short-sighted, lacks inclusivity, and limits employee empowerment and engagement.
Modern management theory has received its fair share of criticism. One critique is its overemphasis on rigid hierarchical structures, which can stifle creativity and hinder employee autonomy. Another criticism is the focus on short-term financial gains, often at the expense of long-term sustainability and employee well-being. Critics argue that this approach neglects the importance of social and environmental factors in organizational success. Additionally, modern management theory is often criticized for its lack of inclusivity and failure to address issues of diversity and equity. Furthermore, some argue that the reliance on top-down decision-making and command-and-control structures limits employee engagement and empowerment. These criticisms highlight the need for a more flexible, holistic, and human-centered approach to management that takes into account the complex dynamics of organizations and their impact on individuals and society.For more such questions on Modern management theory:
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Magnificent Blooms is a florist specializing in floral arrangements for weddings, bo graduations, and other events. Magnificent Blooms has a fixed cost associated with space and equipment of $100 per day. Each worker is paid $50 per day. The daily production § function for Magnificent Blooms is shown in the accompanying table. © Macmil Submit All Quantity of labor (workers) 0 1 2 3 4 5 a. Calculate the marginal product of each worker. Quantity of floral arrangements 0 5 9 12 14 15 Marginal product Quantity of labor (workers) 1 2
Answers
The marginal product of each worker for Magnificent Blooms is as follows: Worker 0: N/A: Worker 1: 5: Worker 2: 4: Worker 3: 3: Worker 4: 2: Worker 5: 1
To calculate the marginal product of each worker for Magnificent Blooms, we need to determine the change in the quantity of floral arrangements resulting from each additional worker.
Here's how to calculate the marginal product for each worker:
Worker 0: Since there are no workers (0 workers), the quantity of floral arrangements is 0. Therefore, the marginal product for worker 0 cannot be calculated.
Worker 1: The quantity of floral arrangements with 1 worker is 5. To calculate the marginal product for worker 1, we subtract the quantity of floral arrangements with 0 workers from the quantity with 1 worker: 5 - 0 = 5.
Worker 2: The quantity of floral arrangements with 2 workers is 9. To calculate the marginal product for worker 2, we subtract the quantity of floral arrangements with 1 worker from the quantity with 2 workers: 9 - 5 = 4.
Worker 3: The quantity of floral arrangements with 3 workers is 12. To calculate the marginal product for worker 3, we subtract the quantity of floral arrangements with 2 workers from the quantity with 3 workers: 12 - 9 = 3.
Worker 4: The quantity of floral arrangements with 4 workers is 14. To calculate the marginal product for worker 4, we subtract the quantity of floral arrangements with 3 workers from the quantity with 4 workers: 14 - 12 = 2.
Worker 5: The quantity of floral arrangements with 5 workers is 15. To calculate the marginal product for worker 5, we subtract the quantity of floral arrangements with 4 workers from the quantity with 5 workers: 15 - 14 = 1.
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Bailey owns a game named Max. Max went viral last year when she posted a meme of him known as “Max the Boss Dog”. bailey thought it would be a great idea to license the meme. Now every time the meme is shared, she receives $0.16 in coins . If the Max meme was shared 88 times last week, how much money did bailey earn in coins?
Answers
A grandfather wants to know the average height of all his grandchildren. He finds that the heights of his 9 grandchildren are given in inches by 67,68,71,67,76, 74, 77,70, 72 What is the population mean of the height of his grandchildren in inches? Round your answer to the nearest tenth of an inch and do not include units.
Answers
Answer:
71.3
Explanation:
to find the mean you have to add all of the heights together and then divide by nine, which is how many heights are given.
Drag the tiles to the correct boxes to complete the palrs.
Match the examples with the proper communication terms.
75 pointsss!!!!!!!!
Answers
Answer:
Ben says to an employee, "Your report had an excellent introduction. Can we work together on the body and conclusion to get'it perfect?" → constructive
Ingrid says to an employee, "Don't come back to work unless you are on time tomorrow." → destructive criticism
Linda says to an employee, "I have a hard time defending tardiness. Can you help me understand why you've been late to work this week?" → l-statement
David sends out a newsletter that lists the results of the employee satisfaction survey. → written communication
Constructive, destructive criticism, l-statement, and written communication are the correct order in which the statment will be written.
What is a communication style?The assertive communication style, which is considered to be the most effective, promotes an open line of communication while remaining nonobtrusive. When expressing their own needs, wants, opinions, and feelings, the motivated staff takes into account the requirements of others.
Ben tells one of the workers, "Your report's introduction was superb. Can we collaborate to perfect this body and conclusion?" This form of communication is Constructive.
Don't come back to work unless you are on time tomorrow, Ingrid tells a worker. This is a destructive criticism.
Linda tells a worker, "I find it challenging to excuse being late. Could you explain to me why you arrived late to work this week?" An l-statement is this.
In a written communication, David distributes a newsletter that contains the findings of the employee satisfaction survey.
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___ refers to factors that prevent new firms from successfully competing in the industry
Answers
Answer:
barriers to entry
Explanation:
Which of the following types of accounts have a normal credit balance?
assets and liabilities
revenues and capital
capital and drawing
liabilities and expenses
Answers
Answer:
Liabilities and expenses
Explanation:
Liabilities and expenses are mostly thee ones that have a normal credit balance
The change in technology and the globalization have brought new pattern of organizing
today's companies, and thus, the managers need to consider these new concepts in
organization's design process. With this statement, discuss the emerging issues in
organization design and architecture.
Answers
Following are the emerging issues in organization design and architecture:Technology and Globalization, Customer Relations,Technical Knowledge, Flexibility, Employee's Well-being.
Following are the emerging issues in organization design and architecture:
Technology and Globalization: The modern era's rapid technology and globalization have forced the organizations to adopt a new pattern of organizing. Managers are focusing more on technology and globalization and they are ensuring that the company can cope with the emerging challenges.Customer Relations: Customers are the major driving force in every business. To maintain the customer base, the managers need to focus on customer relations as the organization's design process should be centered around their needs. This will help the managers in creating a company that provides excellent customer service to its customers.Technical Knowledge: The success of an organization depends on the technical knowledge of its managers. Managers need to have knowledge about new and emerging technologies so that they can use them to enhance the organization's capabilities. In addition, managers need to know how to apply this technical knowledge to improve the organization's structure and operations.Flexibility: Flexibility is a crucial component in the organization's design process. The managers need to design the organization that is flexible enough to adapt to new changes and technologies. This will help the managers in keeping up with the rapidly changing business environment.Employee's Well-being: The well-being of employees is also a significant issue in the organization's design process. The managers need to design the organization in a way that the employees can work efficiently, and their personal needs are also met. This will help in improving the employee's productivity and motivation level and ensure their loyalty to the organization.For more such questions on Globalization
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a limited liability partnership allows business professionals to avoid personal liability for the malpractice of other partners.
Answers
The statement that a limited liability partnership allows business professionals to avoid personal liability for the malpractice of other partners., is True.
What is a limited liability partnership ?By collaborating, limited liability partnerships (LLPs) enable partners to take advantage of economies of scale while simultaneously lowering their exposure to the acts of other partners. LLPs are a flexible legal and tax organization.
Professionals don't want to be held individually accountable for the issues or malpractice claims of one of their partners. An LLP shields each partner from financial obligations to the partnership resulting from claims of another partner's professional negligence. A partner who loses a malpractice lawsuit, however, is still responsible.)
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Options for this question include:
True FalseA bank is preparing a financial asset for trading in the over-the-counter market. It most nearly sounds as though they are _____. securitizing securitizing collateralizing a loan collateralizing a loan creating a derivative creating a derivative offsetting negative risk
Answers
A bank is preparing a financial asset for trading in the over-the-counter market. It most nearly sounds as though they are a derivative offsetting negative risk. The correct option is D.
What are over-the-counter financial instruments?OTC securities are those that are not listed on a national securities exchange. The majority of these securities are traded on Alternative Trading Systems (ATSs), which are quotation mediums that may include electronic interdealer quotation systems that show quotes from broker-dealers for many OTC securities.
In over-the-counter markets, trading is done electronically rather than in a physical location. An auction market system is very dissimilar from this. Dealers serve as market makers in OTC markets by quoting prices at which they will buy and sell securities, currencies, or other financial products.
Thus, the ideal selection is option D.
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Use for business communications only and the disallowing of the transmission of confidential business information are recommended guidelines for _______ a. Desktop configuration b. Instant messaging c. USB drives
Answers
Answer:
B
Explanation:
Use for business communications only and the disallowing of the transmission of confidential business information are recommended guidelines for Instant messaging
The process of identifying the actual measurement scale to assess the variables of interest is called
Answers
Answer:
Operationalizing.
Explanation: None
The process of identifying actual measurement scales to asses variables of interest is called as concretizing.
What is variables of interest ?A variable of interest is a changeable quantity that is measured in an experimental investigation. One or more of these elements, also known as the study's variables, are controlled in order to gather information on how the factors affect the response variable, also known as the response.
There are two basic types of variables: category and numeric. Then, each category is divided into two subcategories: discrete or continuous for numeric variables, and nominal or ordinal for categorical variables.
Example: A scientist wants to know how a car's weight impacts its gas mileage. The gas mileage is the variable of interest, thus that is what we are measuring when we respond.
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Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Sandra's Purse Boutique uses a periodic inventory system.
Date Transactions Units Unit Cost Total Cost
October 1 Beginning inventory 6 $ 790 $ 4,740
October 4 Sale 4
October 10 Purchase 5 800 4,000
October 13 Sale 3
October 20 Purchase 4 810 3,240
October 28 Sale 7
October 30 Purchase 8 820 6,560
$ 18,540
3. Using LIFO, calculate ending inventory and cost of goods sold at October 31
Answers
The cost of goods sold (COGS) was $17,260, and the ending inventory was $3,160 using the LIFO method.
The LIFO method (last-in, first-out) of inventory valuation requires that the most recent purchases of inventory be used first in the cost of products sold and ending inventory calculations. The ending inventory and cost of products sold at the end of October will be calculated using the LIFO method, based on the data given in the table.Based on the data given, the total units sold is 14, and the total units purchased is 17. Here's how to calculate the ending inventory and cost of products sold using the LIFO method:Step 1: The last purchase of 8 units at a cost of $820 each on October 30 is deducted from the inventory count, leaving 9 units.Step 2: The previous purchase of 4 units at a cost of $810 each on October 20 is deducted from the inventory count, leaving 5 units.Step 3: The next purchase of 5 units at a cost of $800 each on October 10 is deducted from the inventory count, leaving 0 units.Step 4: Based on the LIFO method, the cost of the ending inventory is the sum of the cost of the oldest units remaining in stock, which is 4 units at a cost of $790 each on October 1, totaling $3,160.Step 5: Based on the LIFO method, the cost of goods sold (COGS) is calculated by adding the total cost of units sold, which is 14 units at a cost of $820 each on October 30, 4 units at a cost of $810 each on October 20, and 5 units at a cost of $800 each on October 10, totaling $17,260.Therefore, the cost of goods sold (COGS) was $17,260, and the ending inventory was $3,160 using the LIFO method.For more questions on cost of goods sold (COGS)
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According to the above material, there exist large differences between economic growth rate using traditional expenditure approach and the satellite night-light data. How do you evaluate the night-light data method? and can you identify several reasons why there exists such differences?
Answers
The use of satellite night-light data as a method to evaluate economic growth has both strengths and limitations. Reasons for Differences between Traditional Expenditure Approach and Night-light Data: Informal Economy, Data Limitations, Urbanization Bias and Structural Changes.
Here is an evaluation of the night-light data method and several reasons for the differences observed between the traditional expenditure approach and the night-light data:
Evaluation of the Night-light Data Method:
Objective and Timely: Satellite night-light data provides an objective and timely measure of economic activity. Wide Coverage: Night-light data can cover large geographical areas, including remote and inaccessible regions. Granularity: The data can be analyzed at a fine-grained level, allowing for detailed spatial analysis of economic patterns. This can help identify pockets of growth and disparities within regions.Reasons for Differences between Traditional Expenditure Approach and Night-light Data:
Informal Economy: The traditional expenditure approach relies on official economic data, which may not fully capture the informal sector. Data Limitations: Night-light data has its limitations. It primarily measures economic activity related to lighting, which may not capture other dimensions of economic growth such as services or knowledge-based industries. Urbanization Bias: Night-light data tends to be more representative of urban areas with higher population density and greater access to electricity. Structural Changes: The traditional expenditure approach focuses on consumption and investment, while night-light data primarily captures the energy consumption associated with lighting.For such more question on economic:
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Question 1 of 5
What type of goal can help you be prepared for unexpected costs, such as
car repairs?
Long-term financial goal
An emergency fund
Retirement savings
Short-term financial goal
Subsi
Continue
Answers
A goal that can help you to be prepared when there are unexpected costs such as car repairs is An emergency fund.
How can you be prepared for unexpected costs?In order to be prepared for unexpected costs, the best thing to do is to have an emergency fund where you are able to save for when you may have to spend money that you are not prepared for.
The emergency fund would be best placed into an account that can earn interest but at the same time can be eaisly accessible. This was you can earn more money while saving for emergencies, and also be able to use the money for those unexpected costs.
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Let MAC1 = 100 – 10E and MAC2 = 50 – 10E. Graph each function and compute the aggregate MAC curve. Let MD = 30E, compute the socially efficient equilibrium. For the equations given above, suppose the government sets the pollution level at four units. What are the net social costs of this policy?
Suppose a technological change occurs that reduces the marginal costs of abatement for polluter 1 in the above equation to that of polluter 2. How does this affect the socially efficient level of pollution? Solve numerically and graphically.
Answers
If the marginal costs of abatement for polluter 1 become equal to polluter 2, it does not impact the socially efficient level of pollution. The level is still determined by equating Marginal Damage with the Aggregate MAC.
To graph each function, we can plot MAC1 and MAC2 on a graph with the quantity of emissions (E) on the x-axis and the marginal abatement cost (MAC) on the y-axis.
For MAC1: MAC1 = 100 - 10E
For MAC2: MAC2 = 50 - 10E
To compute the aggregate MAC curve, we add the individual MAC curves together. So, Aggregate MAC = MAC1 + MAC2.
Aggregate MAC = (100 - 10E) + (50 - 10E) = 150 - 20E
Now, let's calculate the socially efficient equilibrium by setting the Marginal Damage (MD) equal to the Aggregate MAC.
MD = Aggregate MAC
30E = 150 - 20E
Simplifying the equation, we get:
50E = 150
E = 3
Therefore, the socially efficient equilibrium occurs when the quantity of emissions (E) is 3.
Now, let's calculate the net social costs of the policy when the government sets the pollution level at four units.
Net social costs = Aggregate MAC - MD
Net social costs = (150 - 20(4)) - (30(4))
Net social costs = 110 - 120
Net social costs = -10
The net social costs of this policy would be -10, indicating a net benefit to society.
If a technological change occurs that reduces the marginal costs of abatement for polluter 1 to that of polluter 2, it means that MAC1 will become equal to MAC2.
Setting MAC1 equal to MAC2:
100 - 10E = 50 - 10E
Simplifying the equation, we find that E can have any value, as both sides are equal.
Graphically, this change would mean that MAC1 and MAC2 become parallel lines on the graph, with the same slope and intercept. The socially efficient level of pollution would still be determined by equating MD with the aggregate MAC.
In conclusion, if the marginal costs of abatement for polluter 1 become equal to polluter 2, it does not affect the socially efficient level of pollution. The socially efficient level is still determined by equating the Marginal Damage with the Aggregate MAC, regardless of the marginal costs of individual polluters.
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There is a large transportation network in order to get from the point of manufacture to the point of sale
Answers
Answer:
True
Explanation:
It is TRUE that there is an extensive transportation network to get from the point of manufacture to the end of the sale.
After the product is manufactured in the factory, it will go through or bought by different wholesalers who will have to sell to a group of retailers, all in various places, before being sold to final consumers.
In most cases, there is usually a long list of retailers before the goods reached the final consumers. This movement of goods between all the stakeholders involved can go through various locations, states, or regions before it finally gets consumed.
Hence, in this case, the correct answer is "TRUE."
Who should use itemized deductions?
Answers
Itemized deductions should be used by individuals and businesses who have incurred significant out-of-pocket expenses for specific items. These deductions reduce taxable income and can result in a lower tax liability.
What does "itemized deduction" mean?
Itemized deductions are income tax deductions that you can claim on your tax return. These are deductions for business expenses, medical expenses, charitable contributions, mortgage interest, and other items. You can lower your taxable income and the amount of taxes you owe by itemizing deductions.
What does "liability" mean?
A person's or a business's financial or legal responsibility for a debt, loss, or other obligation is referred to as "liability." Liability can range from a loan to a court judgment for monetary damages.
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XYZ Co is considering a major expansion program that has been proposed by the company’s information technology group. To decide whether the company will undertake this major expansion project, the company paid McLindsay Co., a large consulting company, a fee of $2 million to calculate the costs and benefits of the program, but they will refund half of that cost back to XYZ if the company does not move forward with the project. McLindsay reported that the expansion project will have an upfront cost of $20 million for assets, which are depreciated straight line to zero over the four-year horizon of the project. The company does not need to invest in net working capital (i.e., NWC = 0). McLindsay also expects that the program will generate an operating cash flow equal to $10 million the first year and will expand by 20% per year until the project is liquidated at the end of year four. The liquidation value from selling the equipment will be $4 million. You are an assistant to the CFO of the company and your first task is to advise XYZ whether the company should undertake the investment. The CFO has provided you with the following data, which he believes may be relevant to your task (all the market data are current). The firm’s tax rate is 20%. The market data on XYZ Co’s securities are:
Debt
oBond A: 42,750 bonds with a 5.4% coupon rate, with 20 years to maturity selling at par. oBond B: 55,000 bonds with a 4% coupon rate, with 15 years to maturity selling at par.
Assume that both bonds have a par value of $1,000 and they make semiannual payments.
Common stock
o 1,000,000 shares outstanding, selling for $95 per share; XYZ Co just paid a dividend of $4 per share and is expected to increase its future dividends at a constant rate of 5%. The firm’s beta is 1.8. Assume the risk-free rate is 2% and the market return is 8%.
Answer the following questions and show all the formulas and calculations (if using a financial calculator show all the entries).
a. What is XYZ Co’s cost of debt?
b. What is XYZ Co’s cost of equity using the CAPM?
c. What is XYZ Co’s cost of equity using the dividend growth model?
d. What is XYZ Co’s cost of capital? (for your cost of equity calculations, use the average of cost of equity you calculated in the last two parts).
e. Find the cash flows from assets (CFFA) of the project and then compute the NPV of the project. Accounting for all relevant expenses, should the firm undertake the expansion project?
f. Suppose instead that (1) Bond A and Bond B are priced below par and (2) the common stock is selling for $142.50 per share and the last dividend paid was $6. Would the firm’s WACC be higher, lower, or the same as what you found in part (d)? Explain.
Answers
a. To calculate the cost of debt, we need to find the yield to maturity (YTM) of each bond. We can calculate the YTM of Bond A as 5.4% and the YTM of Bond B as 4%. Therefore, the cost of debt for XYZ Co is the weighted average of the YTM of each bond, where the weights are the proportion of the total market value of debt that each bond represents. Assuming that all bonds are selling at par, the total market value of debt is $97,750,000. Thus, the weight of Bond A is 42,750/97,750 = 0.4376 and the weight of Bond B is 55,000/97,750 = 0.5624. Therefore, the cost of debt is:
Cost of Debt = 0.4376 × 5.4% + 0.5624 × 4% = 4.48%
b. Using the CAPM, we can calculate the cost of equity as:
Cost of Equity = Risk-Free Rate + Beta × (Market Return - Risk-Free Rate)
= 2% + 1.8 × (8% - 2%)
= 13.6%
c. Using the dividend growth model, we can calculate the cost of equity as:
Cost of Equity = (Dividend / Price) + Growth Rate
= ($4 / $95) + 5%
= 9.3%
d. To calculate the cost of capital, we need to find the weighted average of the cost of debt and the cost of equity, where the weights are the proportion of the total market value of debt and equity that each component represents. Assuming that the total market value of equity is $95,000,000, the weight of debt is 97,750,000/(95,000,000 + 97,750,000) = 0.5073 and the weight of equity is 1 - 0.5073 = 0.4927. Therefore, the cost of capital is:
Cost of Capital = 0.5073 × 4.48% + 0.4927 × 13.6% = 9.54%
e. To calculate the cash flows from assets (CFFA) of the project, we need to find the operating cash flows (OCF) and the net capital spending (NCS) for each year of the project. Using the given data, we can calculate the OCF for each year as:
Year 1: OCF = $10,000,000
Year 2: OCF = $12,000,000 (20% increase from year 1)
Year 3: OCF = $14,400,000 (20% increase from year 2)
Year 4: OCF = $17,280,000 (20% increase from year 3)
The net capital spending (NCS) for year 0 is the upfront cost of the project, which is $20,000,000. The NCS for year 4 is the liquidation value of the equipment, which is $4,000,000. The NCS for years 1 to 3 is zero since there is no net working capital requirement.
Calculating the CFFA for each year:
Year 0: CFFA = - $20,000,000
Year 1: CFFA = $10,000,000 - $0 - $20,000,000 = -$10,000,000
Year 2: CFFA = $12,000,000 - $0 = $12
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if somebody asks me if i need help on my work and i say " no ty " , is that rude?
Answers
An applicant should always print their résumé on paper that is _____.
a.
their favorite color
b.
white or light colored
c.
highly patterned
d.
bright or florescent
Answers
An applicant should always print their résumé on paper that is white or light colored. Thus, option B is correct.
What is Resume?A résumé, also known as a curriculum vitae, is a document that a person creates and uses to demonstrate their history, abilities, and accomplishments. Résumés can be used for a number of purposes, although they are most commonly utilized to find a new job.
Applicant always prints their résumé on white paper. White is a common paper color that works effectively regardless of the items on your resume. The white paper gives your CV a clean, professional appearance. The white paper may be used for any task or business.
Candidate should always print their résumé on white or light-colored paper. As a result, option B is correct.
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1a Who were shanon & weaver!
Answers
Shannon and Weaver were:
Communication theoristsShannon and WeaverShannon and Weaver developed a model that analyzed he communication process.
Their model was first published in 1948 and it has been modified, adapted and developed in many ways since then.
Claude Shannon was a mathematician and Warren Weaver was a scientist and they were initially interested in machine translation and how early computer, radios and television transmit information
However, the theory also applied to human communication and remained highly influential in modern science, hence becoming theorists of communication.
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Which of the followWhich of the following actions do not cause an impropriety in job costing?
Choosing an allocation method based on the results rather than choosing the method based on resource usage.
Misstating the stage of completion.
Choosing to use normal costing rather than actual costing.
Charging costs to the wrong job.
ing actions do not cause an impropriety in job costing?
Answers
Answer:
Choosing to use normal costing rather than actual costing.
Explanation:
The choice between normal costing and actual costing is not an ethical issue.
t 3 Lab Learning Activity
K
Marcus Richardson
HW Score: 0%, 0 of 4 points
O Points: 0 of 1
11/03/22 7:32 PM
Question 1, P4-4 (similar to)
(Related to Checkpoint 4.1) (Liquidity analysis) Airspot Motors, Inc. has $2,505,600 in current assets and $864,000 in current liabilities. The company's managers want to
increase the firm's inventory, which will be financed using short-term debt. How much can the firm increase its inventory without its current ratio falling below 2.1
Answers
$6,28,363 the firm increase its inventory without its current ratio falling below 2.1
Current ratio = Current asset / current liability
Increasing inventory would increase the current asset.
We assume the additional inventory = L
So new current asset = L + $2,505,600
New current liability = L + $864,000
So, L + $2,505,600÷ L + $864,000 = 2.1
By solving L we get, L= $6,28,363
In other words, assets are items that provide a financial benefit to a company, such as inventory, buildings, equipment, and cash. They aid a company's ability to manufacture goods or provide services both now and in the future. A company's liabilities are its obligations—either money owed or services not yet performed.
Liabilities are the debts owed by a company to third-party creditors. Accounts payable may include notes payable and bank debt. Businesses take on debt in order to expand faster. A company's stability is determined by the balance of its debts and assets
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WHAT IS THE MINIMUM AGE AN EMPLOYEE OF A FOOD SERVING ESTABLISHMENT MUST BE TO SERVE ALCOHOL
Answers
The answer is that a food service employee must be at least 21 years old to serve alcohol.
Malt, vinous, or spirituous liquor employees under the age of 21 must be overseen by an adult who is present and above the age of 21.
Which definition of an employee is most accurate?An employee is a person who has been hired by an employer to do a certain activity. Employee pay, scheduling, and working conditions are all within the control of the employer. Contractors do not benefit from benefits that employees enjoy.
How is an employee defined by the IRS?According to common-law principles, anyone who performs services for you is your employee if you have control over what will be done and how it will be done. This is true even if you give the employee discretion.
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