3. The management of Alberta Eleven Company has received the following forecast for the next year.
|
Sales Revenue |
$600,000 |
|
|
Fixed Costs |
$275,000 |
|
|
Variable Costs |
$270,000 |
|
|
Total Costs |
$545,000 |
|
|
Net Income |
$ 55,000 |
Capacity is a sales volume of $800,000.
a) Compute the contribution margin and the contribution rate.
b) Compute the break-even point
(i) in dollars
(ii) as a percent of capacity.
c) Determine the break-even volume in dollars if fixed costs are increased by $40,000, while variable costs are held to 40% of sales.
In: Finance
in 2018 the westgate construction company entered into a contract to construct a road for Santa Clara County for 10,000,000 The road was completed in 2020. Calculate the amount of revenue and gross profit to be recognized in each of the 3 years assuming the following costs to incur and costs to complete information. ( Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.
2018 2019 2020
Cost incurred during the year $2,016,000 3,890,000 3,290,000
Estimated cost to complete as of year end $5,184,000 3,190,000
In: Accounting
Management's primary goal in a publicly-owned firm interested in serving its stockholders should be to...
a) Maximize shareholder value by maximizing the intrinsic value of the firm's stock.
b) Maximize the year-over-year variance of the firm's gross margin percentage.
c) Minimize the risk(s) that result in shareholders experiencing losses.
d) Maximize the firm's projected net income.
In: Finance
Auditing
In July 2002, Congress passed the Sarbanes-Oxley Act. The provisions of the Act apply mainly to publicly held companies and their audit firms. Explain briefly how the Act affects audit firms concerning audit reports, audit documentation, internal control, and other services provided by auditors to their clients. ( In a paragraph form if possible, would be great to answer it).
In: Accounting
Type or paste question here
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In: Accounting
Maxilift Australia has a small truck that it uses for intracity deliveries. The truck is worn out and must be either overhauled or replaced with a new truck. The company has assembled the following information. Present Truck ($) New Truck ($) Purchase cost new 21,000 30,000 Remaining book value 11,500 Overhaul needed now 7,000 Annual cash operating costs 10,000 6,500 Salvage value now 9,000 Salvage value eight years from now 1,000 4,000 Additional Information • If the company keeps and overhauls the truck, then the truck will be usable for eight more years. • If a new truck is purchased, it will be used for eight years, after which it will be traded. • The new truck would be diesel-operated, resulting in a substantial reduction in annual operating costs, as shown above. • The company computes depreciation on a straight-line basis. All investment projects are evaluated using 16% discount rate. Required: (a) Determine the present value of the net cash flows associated with the purchase of the new truck option. (b) Determine the present value of the net cash flows associated with the keep the old truck option. (c) Which option would you recommend that the company accept? Why? (
In: Accounting
Your solution should be in good form with amounts clearly labeled and should use appropriate account titles.
Consider each of the transactions below. All of the expenditures were made in cash.
In: Accounting
8. What is the YTM of a $1,000 par value bond with a 10% coupon rate, semi-annual coupon payments, and 9 years to maturity if the bond currently sells for $900? Round to the nearest hundredth percent. Do not include a percent sign in your answer. (i.e. If your answer is 4.32%, then type 4.32 without a % sign)
9. Ford Motors’ bond is currently traded at the value of $1,208.70 and a yield of 4.22%. The current rating of the bond is BBB. If the bond rating company upgrades the rating to A, what will happen to the price and the yield of the bond?
Price: Decrease, Yield: Increase
Price: Decrease, Yield: Decrease
Price: Increase, Yield: Increase
Price: Decrease, Yield: Unchanged
Price: Unchanged, Yield: IncreaseUnchange
Price: Unchanged, Yield: Increase
Price: Increase, Yield: Decrease
In: Finance
Brief Exercise 10-07
| Your answer is partially correct. Try again. | |
Sarasota Company obtained land by issuing 3,400 shares of its
$12 par value common stock. The land was recently appraised at
$147,720. The common stock is actively traded at $42 per
share.
Prepare the journal entry to record the acquisition of the land.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually. If no entry is required,
select "No Entry" for the account titles and enter 0 for the
amounts.)
|
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|
| enter an account title | enter a debit amount | enter a credit amount |
| enter an account title | enter a debit amount | enter a credit amount |
| enter an account title | enter a debit amount | enter a credit amount |
In: Accounting
2. On July 1, 2018, Dynamic Corporation purchased for cash 40% of the outstanding capital stock of Cart Company.
Dynamic has a fiscal year end of October 31st and Cart has a fiscal year end of March 31st. On October 31st, it has not yet been determined by Dynamic conclusively whether it has the ability to significantly influence Cart’s business operation. Cart Company’s stock is actively traded on the NASDAQ exchange reported its net income for the period ended October 31st to Dynamic. Cart also paid cash dividends on September 15th and December 15th to Dynamic and its other stockholders. How should Dynamic report the above facts in its October 31, 2018 financial statements. Discuss the rationale for your answer.
In: Accounting