Marie and Alex just paid $250,000 for a house. They made a down payment of $50,000 and assumed a 30-year $200,000 mortgage with a fixed annual interest rate of 5.50%. The house will serve as a residence for several years, but Marie and Alex also view it as an investment, as property values in the neighborhood are projected to increase at a rate of 5% per year in the near future. Property taxes on their home will be $4,236 the first year and are expected to increase 3% a year. Homeowners insurance will cost $632 the first year and is expected to increase at a rate of 2% each year. The couple plans to sell the house after eight years. Answer the following questions.
What will the couple pay in total mortgage payments over the 8 years (Mortgage payments include an Escrow Account that pays for Homeowners Insurance and Property Taxes. See questions 1, 2, 3 and 4 for amounts. )?
In: Finance
Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $160,000, and budgeted direct labor hours were 16,000. The average wage rate for direct labor is expected to be $20 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow: Job 39 Job 40 Job 41 Job 42 Beginning balance $23,300 $32,900 $19,700 $700 Materials requisitioned 19,800 20,800 12,900 15,200 Direct labor cost 10,900 17,900 7,550 6,100 Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 120 percent of cost. (Naranjo had originally developed Job 40 to order for a customer; however, that customer was near bankruptcy and the chance of Naranjo being paid was growing dimmer. Naranjo decided to hold Job 40 in inventory while the customer worked out its financial difficulties. Job 40 is the only job in Finished Goods Inventory.) Jobs 41 and 42 remain unfinished at the end of the month.
Required: 1. Calculate the balance in Work in Process as of June 30. $
2. Calculate the balance in Finished Goods as of June 30. $
3. Calculate the cost of goods sold for June. $
4. Calculate the price charged for Job 39. Round your answer to the nearest cent. $
In: Accounting
Canadian Solar (NASDAQ: CSIQ) and other solar panel manufacturers are facing a shortage of a key raw material used in the production of solar panels, polysilicon. Environmental regulators in China shut down several factories, triggering the shortage. The cost of polysilicon has risen by as much as 35% in the past several months. A kilogram of polysilicon went from $14 to $19 near the end of 2017.
In addition to the rise in the cost of polysilicon, the selling price of solar panels has been falling throughout the world.
Assignment:
You are a financial officer of Canadian Solar. The company president has asked you for information on the three specific topics below. In a memo format the questions that were asked and at least one more financial ratio/tool that would be impacted by these changes.
Begin you memo by briefly restating the request that was made. This will help define the scope of the assignment. Your one additional ratio should come after you have covered the requested material.
1. What would be the impact of the increase in the cost of the polysilicon on Canadian Solar’s gross profit? Explain.
2. What would be the impact of the decrease in the selling price of solar panels on Canadian Solar’s gross margin? Explain.
3. Assume that Canadian Solar uses a standard costing system for tracking the production of its solar panels. What variance(s), if any, have been impacted by the increase in the cost of polysilicon? Explain
In: Accounting
Chapter 6 Homework
Required information
Exercise 6A-2 Least-Squares Regression [LO6-11]
[The following information applies to the questions displayed below.]
Bargain Rental Car offers rental cars in an off-airport location near a major tourist destination in California. Management would like to better understand the variable and fixed portions of its car washing costs. The company operates its own car wash facility in which each rental car that is returned is thoroughly cleaned before being released for rental to another customer. Management believes that the variable portion of its car washing costs relates to the number of rental returns. Accordingly, the following data have been compiled:
| Month | Rental Returns | Car Wash Costs | |||
| January | 2,500 | $ | 11,900 | ||
| February | 2,500 | $ | 13,600 | ||
| March | 2,800 | $ | 12,700 | ||
| April | 3,100 | $ | 15,600 | ||
| May | 3,700 | $ | 17,100 | ||
| June | 5,200 | $ | 25,100 | ||
| July | 5,600 | $ | 23,100 | ||
| August | 5,700 | $ | 24,400 | ||
| September | 4,800 | $ | 23,700 | ||
| October | 4,500 | $ | 23,800 | ||
| November | 2,300 | $ | 11,600 | ||
| December | 3,100 | $ | 17,400 | ||
Exercise 6A-2 Part 2
2. Using least-squares regression, estimate the variable cost per rental return and the monthly fixed cost incurred to wash cars. (Round your Fixed cost to the nearest whole dollar amount and the Variable cost per unit to 2 decimal places.)
In: Statistics and Probability
Required information
Exercise 5A-2 (Algo) Least-Squares Regression [LO5-11]
[The following information applies to the questions displayed below.]
Bargain Rental Car offers rental cars in an off-airport location near a major tourist destination in California. Management would like to better understand the variable and fixed portions of its car washing costs. The company operates its own car wash facility in which each rental car that is returned is thoroughly cleaned before being released for rental to another customer. Management believes that the variable portion of its car washing costs relates to the number of rental returns. Accordingly, the following data have been compiled:
| Month | Rental Returns | Car Wash Costs | |||
| January | 2,500 | $ | 12,000 | ||
| February | 2,500 | $ | 13,600 | ||
| March | 2,800 | $ | 12,800 | ||
| April | 3,200 | $ | 15,800 | ||
| May | 3,700 | $ | 17,200 | ||
| June | 5,200 | $ | 25,300 | ||
| July | 5,600 | $ | 23,200 | ||
| August | 5,700 | $ | 24,700 | ||
| September | 4,800 | $ | 23,800 | ||
| October | 4,700 | $ | 24,100 | ||
| November | 2,300 | $ | 11,700 | ||
| December | 3,200 | $ | 17,700 | ||
Exercise 5A-2 Part 2 (Algo)
2. Using least-squares regression, estimate the variable cost per rental return and the monthly fixed cost incurred to wash cars. (Round Fixed cost to the nearest whole dollar amount and the Variable cost per unit to 2 decimal places.)
In: Accounting
Matulis, Inc., a calendar year C corporation, owns a single asset with a basis of $325,000 and a fair market value of $800,000. Matulis holds a positive E & P balance. The entity elects S corporation status for 2020 and then sells the asset. Compute the corporate-level built-in gains tax that must be paid by Matulis.
In: Accounting
Matulis, Inc., a calendar year C corporation, owns a single asset with a basis of $325,000 and a fair market value of $800,000. Matulis holds a positive E & P balance. The entity elects S corporation status for 2020 and then sells the asset. Compute the corporate-level built-in gains tax that must be paid by Matulis.
In: Accounting
what does a primary key and foreign key relates to?
Which drive does a magnet damage the most
what the Raid differences ?
what a NIC does
what is NAS and what's it used for and how it can be used in a network setting
which device has a built in antenna
what RF is used for (Radio Frequency )
In: Computer Science
In the discussion preparation, you were asked to analyze the major connections between liability of professionals, insurance policy coverage, and settlement of claims due to health care liability issues. Consider the concept of insurance coverage denial. Ascertain the manner in which such denial is built on the limitation clauses and conditions set forth by the insurance provider.
In: Nursing
the great wall of china what did how learn about this structure that was a surprise to you or resonated with you about building relationships in the workplace did the people who built this wall have to work together are there any lessons to be learned about building relationships across philosophical divides(differing world views) in the workplace?
In: Psychology