A. During the year, a farmer pays $1000 principal and $500 interest on a tractor loan. His annual depreciation expense is $4000. His operating expenses including fuel, oil, and repairs total $500 for the year (ignore fuel tax credits). His marginal tax rate is 25%. What is his after-tax cost of using the tractor for the year?
B. If the farmer leased the tractor for the year for $1200, how
much
would his after-tax cost of using the tractor be?
In: Finance
Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||
| Total cash receipts | $ | 320,000 | $ | 440,000 | $ | 370,000 | $ | 390,000 |
| Total cash disbursements | $ | 372,000 | $ | 342,000 | $ | 332,000 | $ | 352,000 |
The company’s beginning cash balance for the upcoming fiscal year
will be $27,000. The company requires a minimum cash balance of
$10,000 and may borrow any amount needed from a local bank at a
quarterly interest rate of 3%. The company may borrow any amount at
the beginning of any quarter and may repay its loans, or any part
of its loans, at the end of any quarter. Interest payments are due
on any principal at the time it is repaid. For simplicity, assume
that interest is not compounded.
Required:
Prepare the company’s cash budget for the upcoming fiscal year. (Repayments, and interest, should be indicated by a minus sign.)
In: Accounting
Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||
| Total cash receipts | $ | 320,000 | $ | 440,000 | $ | 370,000 | $ | 390,000 |
| Total cash disbursements | $ | 372,000 | $ | 342,000 | $ | 332,000 | $ | 352,000 |
The company’s beginning cash balance for the upcoming fiscal year
will be $27,000. The company requires a minimum cash balance of
$10,000 and may borrow any amount needed from a local bank at a
quarterly interest rate of 3%. The company may borrow any amount at
the beginning of any quarter and may repay its loans, or any part
of its loans, at the end of any quarter. Interest payments are due
on any principal at the time it is repaid. For simplicity, assume
that interest is not compounded.
Required:
Prepare the company’s cash budget for the upcoming fiscal year. (Repayments, and interest, should be indicated by a minus sign.)
In: Accounting
In: Nursing
Consider a population that begins growing exponentially at a base rate of 4.8% per year and then follows a logistic growth pattern. If the carrying capacity is 60 million, find the actual fractional growth when the population is at 10 million, 30 million, and 50 million.
In: Statistics and Probability
A farmer wants to determine if the average growth of sunflowers is 4.5 ft per year or not. A sample of 41 sunflowers had a mean of 4.25 ft per year and a standard deviation of 0.7 ft per year.
a) This is a two-sided test;state the hypotheses.
b) State the rejection region for α=0.05
c)Will you reject or retain the null hypothesis? Show all work to support your answer.
d) Find the 95% confidence interval for average growth of sunflowers.Is the value of µ0 inside the 95% confidence interval?
In: Statistics and Probability
EcoSacks manufactures cloth shopping bags. The controller is preparing a budget for the coming year and asks for your assistance. The following costs and other data apply to bag production.
|
Direct materials per bag |
||
|
2.80 yard cotton at $3.80 per yard |
||
|
1.10 yards canvas finish at $11.20 per yard |
||
|
Direct labor per bag |
||
|
1.20 hour at $18.60 per hour |
||
|
Overhead per bag |
||
|
Indirect labor |
$ |
1.30 |
|
Indirect materials |
2.00 |
|
|
Power |
2.20 |
|
|
Equipment costs |
3.10 |
|
|
Building occupancy |
2.70 |
|
|
Total overhead per unit |
$ |
11.30 |
You learn that equipment costs and building occupancy are fixed and are based on a normal production of 520,000 units per year. Other overhead costs are variable. Plant capacity is sufficient to produce 635,000 units per year.
Labor costs per hour are not expected to change during the year. However, the cotton supplier has informed EcoSacks that it will impose a 20 percent price increase at the start of the coming budget period. No other costs are expected to change.
During the coming budget period, EcoSacks expects to sell 460,000 bags. Finished goods inventory is targeted to increase from the current balance of 140,000 units to 175,000 units to prepare for an expected sales increase the year after next as a result of legislation in several states regarding plastic bags. Production will occur evenly throughout the year. Inventory levels for cotton and canvas are expected to remain unchanged throughout the year. There is no work-in-process inventory.
Required:
a. Prepare a production budget for the coming
year.
b. Estimate the materials, labor, and overhead
costs for the coming year.
In: Accounting
Your Company purchased equipment that cost $55,000 cash on January of Year One. The equipment had an expected useful life of six years and an estimated salvage value of $4,000. Your Company depreciates its assets under the straight line method. What is the amount of depreciation expense (Blank) appearing on the Year Four income statement and the amount of accumulated depreciation (Blank) appearing on the Year Four balance sheet?
In: Accounting
2. An office building has the following investment characteristics:
Year 1 NOI $2,100,000
Year 2 NOI $2,200,000
Year 3 NOI $2,300,000
Year 4 NOI $2,400,000
Initial (going in) cap rate 7%
Loan Principal $18,000,000
Interest rate 5%
Amortization 30 years
Exit cap rate 8%
Holding period 3 years
Solve for each of the following:
Purchase price
Loan to value ratio
Annual debt service
Debt service coverage ratio for year 1
Loan balance at the end of year 3
Equity (Levered) IRR
In: Accounting
Bill paints portraits and treats the activity as a hobby. This year he had $2,500 of income from painting sales, and spent the following amounts:
Easel $ 400
Brushes $ 550
Paint $1,300
Canvases $ 300
Advertising $ 175
Studio Rental $ 600
Assuming all the supplies were used up in the paintings he sold, how should Bill report his hobby income and expense on this year’s tax return?
Group of answer choices
Include $2,500 in income, deduct $ - 0 -
Do not include any of the income or expenses
Include $900 in income, deduct $ - 0 –
Include $2,500 in income, deduct $2,500 for AGI
Include $900 in income, deduct $175
In: Accounting