In January, 2006, Findley Corporation purchased a patent for a new consumer product for $720,000. At the time of purchase, the patent was valid for fifteen years. Due to the competitive nature of the product, however, the patent was estimated to have a useful life of only ten years. During 2011 the product was permanently removed from the market under governmental order because of a potential health hazard present in the product. What amount should Findley charge to expense during 2011, assuming amortization is recorded at the end of each year?a. $480,000.
b. $360,000.
c. $72,000.
d. $48,000.

Answers

Answer 1
Answer:

Answer:

b. $360,000.

Explanation:

Data provided in the question

Purchase value of the patent = $720,000

At the time of purchase, the patent life is 15 years

And, the useful life of the patent is 10 years

So, the amortization expense recorded value is

= $720,000 ÷ 10 years × 5 years

= $360,000

The five years is counted from the year 2006 to the year 2011


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Pat has 4 hours to spend either studying for a test or playing a new video game. If Pat spends all of that time studying, Pat can score a 92 on the test. If Pat plays for 1 hour, Pat's test score falls 5 points. For playing a second hour, Pat's score falls by another 7 points. Playing for a third hour will lower Pat's score by another 10 points. Refer to the information above. The intercept on the test score axis of Pat's PPC is: A. 100


B. 92


C. 5 hours


D. 4 hours

Answers

Answer:

B. 92

Explanation:

The intercept is the point at which a function met with the Y axis.

On the Y axis will be the score

On the X axis the videogames hours

At more videogames hours less score and at less videogames hours more score.

We are asked for the value of score for 0 hours of dividends:

at X = 0 then Y = 92

Answer:

92

Explanation:

Suppose that Xtel currently is selling at $50 per share. You buy 500 shares using $17,500 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8%. a. What is the percentage increase in the net worth of your brokerage account if the price of Xtel immediately changes to (i) $56; (ii) $50; (iii) $44?

b. If the maintenance margin is 30%, how low can Xtel's price fall before you get a margin call?

c. How would your answer to (b) would change if you had financed the initial purchase with only $12,500 of your own money?

d. What is the rate of return on your margined position (assuming again that you invest $17,500 of your own money) if Xtel is selling after one year at (i) $56; (ii) $50; (iii) $44?

e. Continue to assume that a year has passed. How low can Xtel's price fall before you get a margin call?

Answers

Answer:

The value of the 500 shares at the time of the purchase is $25,000 therefore $7500 had to be borrowed from the broker. With an immediate price change, we don’t need to worry about the interest rate on the loan. If the price

of Xtel stock jumps to p, say, the return on the investment, denoted rp, is given

by;

Explanation:.A) rp =

p × 500−7,500−17,500/17,500

=

500p − 25, 000/15, 000

Hence: r56 =500(56)-25,000/15,000= 28000-25,000/15,000 =20%

r50

= 500(50)-25,000/15,000= 25,000-25,000/15,000= 0%

r44 = 500(44)-25,000/15,000= 22,000-25,000/15,000= -20%

B) For a price p, the margin ratio is

500p − 7,500/500p

A margin ratio 0.3 implies that

500p − 7,500/500p= 0.3=>500p − 7,500=150p

=>p= 7500/350= 21.43

C)For a price p, the margin ratio is

500p − 12,500/500p

A margin ratio 0.3 implies that

500p − 12,500/500p= 0.3=>500p − 12,500=150p

=>p= 12,500/350= 35.71

D). Let p denote the price of Xtel’s stock at the end of the year. The return on this investment, rp, is then

rp =500p − (1.08)7,500 − 17,500/17,500=

500p − 25, 400/17,500

Thus r56= 500(56)-25,400/17,500= 14.86%

r50 = 500(50)-25,400/17,500 = -2.29

and

r44= 500(44)-25,400/17,500= -19.43%

E) For a price p, the margin ratio is then

500p − 7,900/500p

Thus a margin ratio 0.3

implies that;

500p − 5,900/500p

= 0.3 => 500p − 5,900 = 150p

=> p = 5,900/350

= 16.86

Sidewinder, Inc., has sales of $714,000, costs of $348,000, depreciation expense of $93,000, interest expense of $58,000, and a tax rate of 25 percent. The firm paid out $88,000 in cash dividends. What is the addition to retained earnings? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Duela Dent is single and had $180,800 in taxable income. Use the rates from Table 2.3. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Calculate her income taxes.Prepare a balance sheet for Alaskan Peach Corp. as of December 31, 2019, based on the following information: cash = $203,000; patents and copyrights = $857,000; accounts payable = $286,000; accounts receivable = $263,000; tangible net fixed assets = $5,200,000; inventory = $548,000; notes payable = $179,000; accumulated retained earnings = $4,686,000; long-term debt = $1,150,000. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

Answers

Answer:

Sidewinder, Inc.

The addition to retained earnings is:

=  $73,250

Duela Dent:

Income taxes = $45,200.

Alaskan Peach Corp.:

Balance Sheet as of December 31, 2019

Assets

Current assets:

Cash                                    $203,000

Accounts receivable             263,000

Inventory                               548,000     $1,014,000

Long-term assets:

Tangible net fixed assets 5,200,000

Patents and copyrights        857,000  $6,057,000

Total assets                                           $7,071,000

Liabilities and Equity:

Current liabilities:

Accounts payable             $286,000

Notes payable                      179,000     $465,000

Long-term liabilities:

Long-term debt                                     $1,150,000

Total liabilities                                       $1,615,000

Accumulated retained earnings          4,686,000

Common stock (missing figure)              770,000

Total liabilities and equity                   $7,071,000

Explanation:

a) Data and Calculations:

Sidewinder, Inc.:

Sales revenue  $714,000

Cost of goods sold  $348,000

Depreciation expense $93,000

Interest expense $58,000

Tax rate = 25%

Cash dividends paid = $88,000

Income Statement

Sales revenue                  $714,000

Cost of goods sold           348,000

Gross profit                    $366,000

Depreciation expense       93,000

EBIT                                $273,000

Interest expense              (58,000)

Income before tax         $215,000

Tax rate (25%)                   53,750

Net income                    $161,250

Cash dividends paid        88,000

Addition to Retained

 Earnings                      $73,250

Duela Dent (single):

Taxable income = $180,800

Income tax (25%)     45,200

Alaskan Peach Corp.:

Account Titles                          Debit       Credit

Cash                                    $203,000

Accounts receivable             263,000

Inventory                               548,000

Patents and copyrights        857,000

Tangible net fixed assets 5,200,000

Accounts payable                                  $286,000

Notes payable                                           179,000

Long-term debt                                      1,150,000

Accumulated retained earnings          4,686,000

Common stock (missing figure)              770,000

Totals                               $7,071,000 $7,071,000

If a corporation repurchases its debt, which of the following statements are TRUE? I The corporation's capitalization will increase
II The corporation's capitalization will decrease
III The market value of the common stock will increase
IV The market value of the common stock will decrease

Answers

Answer:

II and III

Explanation:

The best answer is ii and iii. If a corporation repurchases its debt, then its capitalization will decrease. Corporations   repurchase debt to refinance at smaller interest rates so as to To increase the market value of the corporation's common stock. If corporation has less debt, the common stock would have more value and to reduce the corporation's earnings fluctuation's due to cyclical conditions. Corporate sales fall because of cyclical conditions, but fixed interest charges do not. This causes earnings for common shareholders to reduce in period of falling sales. To reduce this possibility, a corporation can repurchase its debt.

Based on murder rates in the United States, an Associated Press story reported that the probability that a newborn child has, of eventually being a murder victim, is 0:0263 for nonwhite males, 0:0049 for white males, 0:0072 for nonwhite females, and 0:0023 for white females. (a) Find the conditional odds ratio between race and whether a murder victim, given gender. Interpret your results. Do these variables exhibit homogeneous association? (b) Half the newborns are of each gender, for each race. Find the marginal odds ratio between race and whether a murder victim.

Answers

Answer:

The odds of being murder victims among nob white males are 5.485 times as compared to white males.

Explanation:

See attachment for explanation.

_______ is the phenomenon of the shifting of individual management styles to become more similar to one another.

Answers

Answer:

Convergence

Explanation:

Convergence meaning that the two different entities are coming together. It is also defined as the tendency of the group members to become more alike. It is also known as the company culture, in the sense, that the people who work there, tend to have the similar characteristics.

Therefore, the convergence is the phenomenon which states the shifting of the styles of the individual management in order to become more similar to one another.

Other Questions
Estimating Share Value Using the DCF Model Following are forecasts of Whole Foods sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of September 25, 2016.Reported Horizon Period$ millions 2016 2017 2018 2019 2020 Terminal PeriodSales $15,724 $15,881 $16,199 $16,523 $16,853 $17,022NOPAT 526 524 535 545 556 562NOA 3,466 3,500 3,570 3,642 3,715 3,752Answer the following requirements assuming a discount rate (WACC) of 6%, a terminal period growth rate of 1%, common shares outstanding of 318.3 million, and net nonoperating obligations (NNO) of $242 million.(a) Estimate the value of a share of Whole Foods' common stock using the discounted cash flow (DCF) model as of September 25, 2016.Rounding instructions:Round answers to the nearest whole number unless noted otherwise. Use your rounded answers for subsequent calculations.Do not use negative signs with any of your answers.Reported Forecast Horizon($ millions) 2016 2017 2018 2019 2020 Terminal PeriodIncrease in NOA Answer Answer Answer Answer AnswerFCFF (NOPAT - Increase in NOA) Answer Answer Answer Answer AnswerDiscount factor [1 / (1 + rw)t ] (Round 5 decimal places) Answer Answer Answer AnswerPresent value of horizon FCFF Answer Answer Answer AnswerCUMULATIVE present value of horizon FCFF $ AnswerPresent value of terminal FCFF AnswerTotal firm value Answer NNO AnswerFirm equity value $ AnswerShares outstanding (millions) Answer (Round one decimal place)Stock price per share $ Answer (Round two decimal places)(b) Whole Foods stock closed at $30.96 on November 18, 2016, the date the 10-K was filed with the SEC. How does your valuation estimate compare with this closing price? What do you believe are some reasons for the difference?A. Stock prices are a function of many factors. It is impossible to speculate on the reasons for the difference.B. Our stock price estimate is only a few cents lower than the Whole Foods market price, indicating that we believe that Whole Foods stock is accurately priced. Our stock price estimate is lower than the Whole Foods market price, indicating that we believe that Whole Foods stock is overvalued.C. Stock prices are a function of expected NOPAT and NOA, as well as the WACC discount rate. Our lower stock price estimate might be due to more optimistic forecasts or a lower discount rate compared to other investors' and analysts' model assumptions.D. Our stock price estimate is lower than the Whole Foods market price, indicating that we believe that Whole Foods stock is undervalued. Stock prices are a function of expected NOPAT and NOA, as well as the WACC discount rate. Our lower stock price estimate might be due to more optimistic forecasts or a lower discount rate compared to other investors' and analysts' model assumptions.