Answers
Answer:
Market risk premium = 9.2%
Explanation:
The market risk premium is the difference between the market returns and the t bill yield. To calculate the market risk premium of this duration we will need to subtract the average annual t bill yield from the average annual return on the standard and poor's 500 index.
14.8-5.6=9.2
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A productivity index of 110% means that a company’s labor costs would have been 10% higher if it had not made production improvements. Now refer to the Income Statement in Chester's Annual Report. The direct labor costs for Chester were $32,680. These labor costs could have been $20,000 higher if investments in training that increased productivity had not been made. What was the productivity index for Chester that led to such savings?
An agent informs owners in an area that a decline in property values over the past five years is due to an influx of minority families. He suggests that the trend will continue, and advises them to sell before it is too late. This agent is probably guilty of
Each of the following quality control policies and procedures is typical of ones that can be found in public accounting firms’ systems of quality control. Identify each of them with one of the six elements of quality control identified by SQCS 8. Assign management responsibilities in such a manner that commercial considerations do not override the quality of work performed. Establish policies and procedures for resolving differences of opinion among firm personnel that arise during professional engagements. Develop policies and procedures to ensure that professionals are provided appropriate professional development opportunities. Review engagement documentation, reports, and the client’s financial statements. Develop effective performance evaluation, compensation, and advancement procedures. Identify circumstances and relationships that create threats to independence and take appropriate action to eliminate those threats or reduce them to an acceptable level. Identify whether the firm possesses the competency, capability, and resources to appropriately serve a specific client. Devote sufficient resources to develop, communicate, and support the firm’s quality control procedures. Retain engagement documentation for a sufficient period of time to satisfy the needs of the firm, professional standards, laws, and regulations.
b. On April 1, OP Co. issues no-par value common stock for $73,000 cash.
c. On April 6, MPG issues 2,300 shares of $15 par value common stock for $42,000 of inventory, $150,000 of machinery, and acceptance of a $92,000 note payable.
Answers
Answer:
The answer is given below;
Explanation:
a. Cash Dr.$302,000
Capital (44,000*5) Cr.$220,000
Paid in Capital in excess of par Cr.$82,000
b. Cash Dr.$73,000
Capital Cr.$73,000
c. Cash Dr.$42,000
Capital 2,300*15 Cr.$34,500
Paid in capital in excess of par Cr.$7,500
Machinery Dr.$150,000
Cash (150,000-92,000)Cr.$58,000
Note payable Cr.$92,000
Answers
Answer:
Rock Inc.
Gross profit ratio:
= 0.70
Explanation:
a) Data and Calculations:
Sales $473,864
Cost of Goods Sold 142,263
Gross profit $331,601
Gross profit ratio = Gross profit/Sales
= $331,601/$473,864
= 0.69978
= 0.70
b) Rock's gross profit is the difference between the Sales Revenue and the Cost of Goods Sold. It is the first profit point on the Income Statement. It measures the company's ability to convert sales revenue into profit after accounting for the cost of goods sold. This profit will cover the expenses incurred in running the business for the particular period.
Answers
Answer:
Garnishment
Explanation:
Garnishment refers to an order in which a person directs a third party with respect to seize assets i.e salary earned from employment or money in a bank account so that the unpaid debt amount could be settled out
In the given case, the same situation occurs so this is a case of garnishment and the same is to be considered
Answers
Answer: See explanation
Explanation:
Based on the scenario in the question, the amount that the restaurant charge for the lunch excluding any tax will be calculated as:
= $15.40 × 100/(100 + 8)
= $15.40 × 100/108
= $1540/108
= $14.26
Sales tax will be:
= $15.40 × 8%
= $15.40 × 8/100
= $15.40 × 0.08
= $1.23
Answers
Answer:
$60,000 increase
Explanation:
The company's additional earnings before interest and taxes (EBIT) are subjected to a 40% tax rate. The company's EBIT is:
The change in income is determined as the EBIT minus taxes and interest expense:
Therefore, Garfield Industries experienced a $60,000 increase in its income as a result of the expansion.
Final answer:
The net income will increase by $100,000 as a result of the expansion.
Explanation:
To calculate the net income increase or decrease, you need to subtract the increased costs of goods sold, depreciation expenses, and interest expense from the increased sales. The tax rate of 40 percent should be applied to the resulting amount to calculate the net income. So, the net income increase or decrease can be calculated as follows:
- Increased sales: $1,000,000
- Increased costs of goods sold: $700,000
- Depreciation expenses increase: $50,000
- Interest expense increase: $150,000
Net income increase or decrease = (Increased sales - Increased costs of goods sold - Depreciation expenses increase - Interest expense increase) * Tax rate
= ($1,000,000 - $700,000 - $50,000 - $150,000) * 0.40
= $100,000
Therefore, the net income will increase by $100,000 as a result of the expansion.
Answers
Answer:
The answer is
$197,400.
Explanation:
The cost of acquisition of an asset (land) is the non-depreciable costs associated with the acquisition of the land, because land is considered as an asset that does not depreciate. The costs that make up the cost of acquiring a land includes the normal, reasonable and necessary expenditures associated with the land to obtain it and get it ready for use. These include the agreed upon cash price, repair and reconditioning costs, title fees, legal fees, zoning fees and survey fees. On the there are costs of improvements made on the land and this is not part of acquisition costs because these improvements depreciate with time, and they are recorded in the cost of improvement account which takes depreciation into consideration. Example of these costs include parking lots, irrigation systems etc.
Hence in this case, all the expenditures except the cost of paving a parking lot are recorded as cost of acquisition of the land, and these include:
cost of purchase = $185,000
property taxes = $ 5,200
title and attorney fees = $ 3,100
cost of grading = $ 4,100
Total = $197,400