|
Gilmore, Inc., had equity of $190,000 at the beginning of the year. At the end of the year, the company had total assets of $345,000. During the year, the company sold no new equity. Net income for the year was $40,000 and dividends were $5,600. |
| a. |
Calculate the internal growth rate for the company. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| b. | Calculate the internal growth rate using ROA × b for beginning of period total assets. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| c. | Calculate the internal growth rate using ROA × b for end of period total assets. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
In: Finance
In: Finance
Changing the Cost Formula for a Month to the Cost Formula for a Year
During the past year, the high and low use of three different resources for Fly High Airlines occurred in July and April. The resources are airplane depreciation, fuel, and airplane maintenance. The number of airplane flight hours is the driver. The total costs of the three resources and the related number of airplane flight hours are as follows:
Resource |
Airplane Flight Hours |
Total Cost |
|||
| Airplane depreciation: | |||||
| High | 44,000 | $ 18,500,000 | |||
| Low | 28,000 | $ 18,500,000 | |||
| Fuel: | |||||
| High | 44,000 | 445,896,000 | |||
| Low | 28,000 | 283,752,000 | |||
| Airplane maintenance: | |||||
| High | 44,000 | 16,272,000 | |||
| Low | 28,000 | 12,256,000 | |||
Required:
If required, round calculations and answers to nearest dollar.
1. Develop an annual cost formula for airplane depreciation.
Total annual cost of airplane depreciation = x ( $ )
Develop an annual cost formula for fuel.
Total annual cost of fuel = $ ×
Develop an annual cost formula for airplane maintenance.
Total annual cost of airplane maintenance = ( x $ ) + ( $ × )
2. Using the three annual cost formulas that you developed, predict the cost of each resource in a year with 484,000 airplane flight hours.
| Total annual cost of airplane depreciation | $ |
| Total annual cost of fuel | $ |
| Total annual cost of airplane maintenance | $ |
In: Accounting
The Tanenbaum Company anticipates that in the coming year (a) it will produce 40,000 units of its sole product and require a total of two labor hours per unit; (b) its average labor wage rate will be $12.75 per hour; and (c) it expects to incur indirect production costs of $1,460,000 to produce these 40,000 units. What should it's overhead rate be in the coming year if Tanenbaum used an overhead vehicle of
Number of units?
Direct labor hours?
Direct labor dollars?
Yoshihara Corporation produces two products with the same total prime cost:
|
Product |
Direct Labor |
Direct Material |
|
S |
$146 |
$210 |
|
T |
$200 |
$156 |
If Yoshihara uses units of production as its overhear vehicle, the two products also have the same total manufacturing costs. If the company uses direct material dollars as its overhead vehicle, which product do you think will end up costing more? Why?
In: Finance
In: Finance
In: Economics
It turns out that in 3 years an investor sells the bond at a price of $1,019.12. Calculate the annual realized return over the 3 years the investor held the bond. Show your work and explain.
In: Finance
A project with an initial investment of $46,000 and cash inflows of $11,000 a year for six years, calculate NPV given a required return of 12%/year.
Select one:
a. $888
b. -$347
c. -$1,205
d. -$775
e. $1,699
In: Finance
the Florida lottery Agrees to pay the winner $283,000 at the end of the year for the next 20 years. What is the future value of this prize if each payment is put in an account earning 0.09?
In: Finance
A piece of equipment will save $8000 the first year and the savings will increase by 5% per year for the next 10 years. If the interest rate is 10% per year, how much can you spend on the equipment based on the savings. Ans $xxxxx
In: Economics