Colter Steel has $5,600,000 in assets. Temporary current assets $ 3,200,000 Permanent current assets 1,610,000 Fixed assets 790,000 Total assets $ 5,600,000 Short-term rates are 10 percent. Long-term rates are 15 percent. Earnings before interest and taxes are $1,180,000. The tax rate is 20 percent. If long-term financing is perfectly matched (synchronized) with long-term asset needs, and the same is true of short-term financing, what will earnings after taxes be

Answers

Answer 1
Answer:

Answer:

The Earnings after taxes will be $400,000

Explanation:

According to the data we have the following Long term financing funds of Permanent current assets = $1,610,000  and Fixed assets = $790,000  so the total of Long term financing funds= $ 2,400,000

Also, we have Termperory current assets = $3,200,000

Therefore, the Long term interest expenses = $2,400,000 * 15%

                                                                          = $360,000

       

                 and the Short term interest expenses = $3,200,000* 10%

                                                                                  = $ 320,000

Hence, Total interest expenses=$360,000+$ 320,000=$680,000

So, Earnings before taxes=Earnings before interest and taxes-Interest expenses=$ 1,180,000- $ 680,000=$500,000

The tax rate is 20 percent, hence, taxes=$500,000*20%=$100,000

Therefore, The Earnings after taxes would be=Earnings before taxes-taxes

                                                                           =$500,000-$100,000

                                                                            =$400,000


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Suppose the owner Of the artwork manages to recruit another bidder, Manuel, to the auction. Manuel is known to value the art piece at $8,000.
The expected price paid by Kenji, given the presence of the second bidder Manuel, is $:_________

Answers

Please find attached

Answer and Explanation:

1. If there are no other bidders present as from question them we can conclude that Kenji would buy the art piece for $5000. See question

2. If there is a bidder present in the name of Manuel who would bid for $8000 then Kenji would bid at $8000 and win the bid for the art piece. See question. Kenji would bid at price of 2nd highest bidder to win the bid for art piece

A company manufactures hair dryers. It buys some of the components, but it makes the heating element, which it can produce at the rate of 860 per day. Hair dryers are assembled daily, 251 days a year, at a rate of 330 per day. Because of the disparity between the production and usage rates, the heating elements are periodically produced in batches of 2,300 units. a. Approximately how many batches of heating elements are produced annually? (Round your answer to 2 decimal places.) Number of batches
b. If production on a batch begins when there is no inventory of heating elements on hand, how much inventory will be on hand 2 days later? Number of inventory
c.What is the average inventory of elements, assuming each production cycle begins when there are none on hand? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Average inventory
d. The same equipment that is used to make the heating elements could also be used to make a component for another of the firm’s products. That job would require 3 days, including setup. Setup time for making a batch of the heating elements is a half day. Is there enough time to do this job between production of batches of heating elements?

i. No
ii. Yes

Answers

Answer:

(a) 93.85 batches of heating elements are produced annually

(b) 1725

(c) 863

(d) Yes

Explanation:

(a) Daily production rate is 860 units

Annual (251 days) production rate is = 251×860 = 215860 units

In a batch, 2300 units are produced

215860 units are produced in (215860 ÷ 2300) = 93.85 batches

(b) In 251 days, 93.85 batches are produced

In 2 days, (93.85×2)÷251 is produced = 0.75 batch

1 batch = 2300 units

0.75 batch = 0.75×2300=1725 units

(c) 0.75 batch is produced in 2days

1 batch is produced in 2/0.75days

Average= (2300×0.75)÷2= 863

Final answer:

The company produces approximately 93.85 batches of heating elements annually, has an inventory of 1,060 units two days after production, and maintains an average inventory of 1,150 units. Furthermore, there is enough time to produce other products between batches of heating element production.

Explanation:

To solve this problem, we first need to understand the company's production and consumption rates of the heating elements for their hair dryers.

a. The company produces elements at a rate of 860 per day and runs 251 days per year. Thus, they produce around 215,860 elements annually. As they produce elements in batches of 2,300, the number of batches produced annually will be 215,860 divided by 2,300, which is approximately 93.85. So, the company produces about 93.85 batches of heating elements annually.

b. Two days after the production of a batch, the company will have produced 2 * 860 = 1,720 elements but used 2 * 330 = 660, thus having an inventory of 1,060 units.

c. To calculate the average inventory, we take the sum of the maximum and minimum inventory (2,300 and 0, respectively) and divide by 2, leading to an average inventory of 1,150 units.

d. The time between production of batches of heating elements is the total quantity in a batch divided by the net increase per day (860-330). This equals 2,300/(860-330) approximately 4.8 days. Given that the other product takes 3 days to make, including setup, there is enough time to produce it between batches of heating elements.

Learn more about Inventory Management here:

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Unland Company uses a periodic inventory system. Details for the inventory account for the month of January 2017 are as follows: Units Per unit price Total
Balance, 1/1/2017 290 $5.00 $1450
Purchase, 1/15/2017 140 ..5.10 714
Purchase, 1/28/2017 140 ..5.30 742

An end of the month (1/31/2017) inventory showed that 230 units were on hand. If the company uses LIFO, what is the value of the ending inventory?

Answers

Answer:

Ending inventory= $1706

Explanation:

Giving the following information:

Units Per unit price Total

1/1/2017: 290 *$5.00=  $1450

1/15/2017: Purchase,  140*$5.10= $714

1/28/2017: Purchase,  140*$5.30= $742

At the end of the month (1/31/2017) inventory showed that 230 units. If the company uses LIFO (last-in, first-out)

Ending inventory= 140*5.30+140*5.10+50*5= $1706

Hatfield Corporation, which has only one product, has provided the following data concerning its most recent month of operations:Selling price $123Units in beginning inventory 0Units produced 6,400Units sold 6,100Units in ending inventory 300Variable costs per unit: Direct materials $45 Direct labor $30 Variable manufacturing overhead $1 Variable selling and administrative $8Fixed costs: Fixed manufacturing overhead $140,800Fixed selling and administrative $91,500What is the net operating income for the month under variable costing?a) $12,200b) ($17,200)c) $5,600d) $6,600

Answers

Answer:

Instructions are below.

Explanation:

Giving the following information:

Selling price= $123

Units sold= 6,100

Variable costs per unit:

Direct materials $45

Direct labor $30

Variable manufacturing overhead $1

Variable selling and administrative $8

Fixed costs:

Fixed manufacturing overhead $140,800

Fixed selling and administrative $91,500

First, we need to calculate the total variable cost per unit:

Variable cost per unit= 45 + 30 + 1 + 8= $84

Income statement:

Sales= 6,100*123= 750,300

Total variable cost= 6,100*84= (512,400)

Contribution margin= 237,900

Fixed manufacturing overhead= (140,800)

Fixed selling and administrative= (91,500)

Net operating income= 5,600

Pharell works in the Government and Public Administration career cluster. Physical fitness and patriotism are very important tohim and he would like to travel to new places around the world. Which career pathway would best suit Pharell?
O Planning
O Governance
O Revenue and Taxation
O National Security

Answers

Answer:

O National Security

Explanation:

The Government and Public Administration cluster is composed of people who assist in enforcing the law. The cluster includes people in military workers,  municipal clerks, and service clerks,

National security concerns the ability of a country to cater to its citizenry's protection and defense. Pharell liking for physical fitness and patriotism will make him a perfect fit for protecting the citizens and the country.

Answer:

Sorry im late but theyre right

Explanation:

Whispering Corporation acquires a coal mine at a cost of $444,000. Intangible development costs total $111,000. After extraction has occurred, Whispering must restore the property (estimated fair value of the obligation is $88,800), after which it can be sold for $177,600. Whispering estimates that 4,440 tons of coal can be extracted. If 839 tons are extracted the first year, prepare the journal entry to record depletion.

Answers

Answer:

Debit Depletion Expense   $88,095

Credit   Accumulated Depreciation for Coal Mine   $88,095

Being the record of the depletion expense on the acquired coal Mine.

Explanation:

Step 1: Compute the depletion expense for the coal mine  for that first year

Formula= (Depreciable Cost/ Total Quantity of Coals) x The Quantity of Extracted Coals

Depreciable Cost= Cost of the Coal Mine - Value that can be salvaged

Cost of Coal Mine = Cost of Acquisition + Intangible Development Costs + Fair Value of Obligation

Cost of Coal Mine = $444,000 + $111,000 + $88,800 = $643,800

Depreciable Cost = $643,800 - $177,600

= $466,200

Depletion Expense based on Formula

= ($643,800/4,440 tons) x 839 tons extracted the first year

= $88,095

Step 2: Prepare the Journal Entry for the Depletion

Debit Depletion Expense   $88,095

Credit   Accumulated Depreciation for Coal Mine   $88,095

Being the record of the depletion expense on the acquired coal Mine.

Please Note:

Depletion Expense is the expense that is usually incurred when utilizing natural resources such as coal and it is usually charged as expense against profit

The Total cost of coal Mine is a sum of all relevant costs including cost of acquisition, fair value of obligation and intangible development costs.

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