How JOBS act affect private equity investment in the near future?
In: Finance
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs:
| Fixed Cost per Month |
Cost per Car Washed |
||||||
| Cleaning supplies | $ | 0.80 | |||||
| Electricity | $ | 1,100 | $ | 0.10 | |||
| Maintenance | $ | 0.10 | |||||
| Wages and salaries | $ | 4,500 | $ | 0.30 | |||
| Depreciation | $ | 8,500 | |||||
| Rent | $ | 2,100 | |||||
| Administrative expenses | $ | 1,300 | $ | 0.04 | |||
For example, electricity costs are $1,100 per month plus $0.10 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $5.90 per car washed. The company actually washed 8,200 cars in August.
Required:
Calculate the company's activity variances for August.
In: Accounting
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs:
| Fixed Cost per Month |
Cost per Car Washed |
||||||
| Cleaning supplies | $ | 0.60 | |||||
| Electricity | $ | 1,400 | $ | 0.05 | |||
| Maintenance | $ | 0.20 | |||||
| Wages and salaries | $ | 4,600 | $ | 0.40 | |||
| Depreciation | $ | 8,200 | |||||
| Rent | $ | 2,100 | |||||
| Administrative expenses | $ | 1,800 | $ | 0.04 | |||
For example, electricity costs are $1,400 per month plus $0.05 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.90 per car washed. The company actually washed 8,300 cars in August.
Calculate the company's activity variances for August.
In: Accounting
In: Physics
Interest rates in India are 5.25% p.a. and in Brazil they are currently at 2.5% p.a. The BRL/INR spot rate is 13.37.
(a) Calculate the theoretical three-year forward rate of the BRL implied by Interest Rate Parity.
(b) Now assume the actual two-year forward rate is BRL/INR 15.20. What, if any, is the percentage return from engaging in Covered Interest Arbitrage? Assume a transaction cost of 0.3% in the spot and the forward market. (Calculate the result as a percentage of your initial borrowing, accurate to 4 decimal places, making sure to include any opportunity cost in your calculations)
In: Finance
Interest rates in India are 5.25% p.a. and in Brazil they are currently at 2.5% p.a. The BRL/INR spot rate is 13.37. (a) Calculate the theoretical three-year forward rate of the BRL implied by Interest Rate Parity. (b) Now assume the actual two-year forward rate is BRL/INR 15.20. What, if any, is the percentage return from engaging in Covered Interest Arbitrage? Assume a transaction cost of 0.3% in the spot and the forward market. (Calculate the result as a percentage of your initial borrowing, accurate to 4 decimal places, making sure to include any opportunity cost in your calculations)
In: Finance
In: Accounting
Kamal Fatehl production manager of Kennesaw? Manufacturing, finds his profit at ?$39 comma 200 ?(as shown in the statement? below) inadequate for expanding his business. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Kamal would like to improve profit line to ?$49 comma 200 so he can obtain the? bank's approval for the loan. ?% of sales Sales 280 comma 000 ?100% Cost of supply chain purchases 182 comma 000 65?% Other production costs 30 comma 800 11?% Fixed costs 28 comma 000 10?% Profit 39 comma 200 14?% ?a) What percentage improvement is needed in a supply chain strategy for profit to improve to ?$49 comma 200?? What is the cost of material with a ?$49 comma 200 ?profit? A decrease of nothing?% in? supply-chain costs is required to yield a profit of ?$49 comma 200?, for a new cost of supply chain purchases of ?$ nothing. ?(Enter your response for the percentage decrease to one decimal place and enter your response for the new supply chain cost as a whole? number.) ?b) What percentage improvement is needed in a sales strategy for profit to improve to ?$49 comma 200?? What must sales be for profit to improve to ?$49 comma 200?? An increase of nothing?% in sales is required to yield a profit of ?$49 comma 200?, for a new new level of sales of ?$ nothing. ?(Enter your response for the percentage increase to one decimal place and enter your response for the new sales as a whole? number.)
In: Operations Management
Each of the following are independent situations. For each of the situations, use the 5-step process to determine when revenue can be recognized by indicating for each of the situations:
1. If a contract exists
2. The performance obligations in the contract
3. The transaction price in the contract
4. How the transaction price is allocated to the performance obligations.
5. When revenue is recognized
Situation A:
Freddy Flyer books travel on an airline on June 2, 2027. He pays $500 for a round-trip ticket that departs July 15, 2027 and returns July 20, 2027. In addition, once the round-trip ticket is used, the airline credits Freddy’s frequent flyer account for 500 miles based on a $.01 value for each frequent flyer point.
Situation B:
Dave’s Discount Emporium and Creative Construction, Inc. enter into a contract on May 1, 2027. Creative will build a new warehouse for Dave at a price of $2,000,000. Dave will make four equal payments to Creative over the 1-year construction period with the first payment made on May 1, 2027 and the other payments made every 4 months. Dave can cancel the construction at any time and will own any parts of the construction to date; however, it must pay Creative for work done up to the date of cancellation. The building is completed on April 30, 2018.
Situation C:
Doggone Good Donuts agrees to supply donuts and coffee to Better Brakes, a local business that manufacturers automobile break components, on a daily basis. The contract starts on January 1, 2027, and runs for 1 year. Doggone charges $400 per week for the donuts and coffee.
Situation D:
The Northville Nuggets sell four season tickets to a customer. The Nuggets play 10 regular season games, and the cost of one season ticket is $250.
Situation E:
Lazy Days Inc. enters into a contract with Hyper Hands Co. to sell it $50,000 of goods with delivery on May 10, 2027. Lazy manufactured the goods at a cost of $33,000. The contract is signed on April 15, 2027 and Hyper pays $25,000 at that time Lazy delivers the goods on May 10, 2027, and receives the final payment.
In: Accounting
The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Listed below are some of the costs that are incurred at the company.
Required:
For each cost, indicate whether it would most likely be classified as direct materials, direct labor, manufacturing overhead, selling, or an administrative cost.
1. The cost of a hard drive installed in a computer.
Direct labor cost
Direct materials cost
Manufacturing overhead cost
Selling cost
Administrative cost
2. The cost of advertising in the Puget Sound Computer User newspaper.
Direct labor cost
Direct materials cost
Manufacturing overhead cost
Selling cost
Administrative cost
3. The wages of employees who assemble computers from components.
Direct labor cost
Direct materials cost
Manufacturing overhead cost
Selling cost
Administrative cost
4. Sales commissions paid to the company’s salespeople.
Direct labor cost
Direct materials cost
Manufacturing overhead cost
Selling cost
Administrative cost
5. The salary of the assembly shop’s supervisor.
Direct labor cost
Direct materials cost
Manufacturing overhead cost
Selling cost
Administrative cost
6. The salary of the company’s accountant.
Direct labor cost
Direct materials cost
Manufacturing overhead cost
Selling cost
Administrative cost
7. Depreciation on equipment used to test assembled computers before release to customers.
Direct labor cost
Direct materials cost
Manufacturing overhead cost
Selling cost
Administrative cost
In: Accounting