Suppose that a firm always announces a yearly dividend at the
end of the first quarter of the year, but then pays the dividend
out as four equal quarterly payments. If the next such "annual"
dividend has been announced as $5.40, it is exactly one quarter
until the first quarterly dividend from that $5.40, the effective
annual required rate of return on the company's stock is 12
percent, and all future "annual" dividends are expected to grow at
4 percent per year indefinitely, how much will this stock be worth?
(Do not round intermediate calculations and round your
final answer to 2 decimal places.)
In: Finance
Below is an expert from a company’s income statement for the first quarter. What is the cost behavior associated with each expense? (Each cost behavior can be used once, multiple times, or not at all.)
| January | February | March | |
| Units Sold | 6,000 | 8,000 | 5,000 |
| Depreciation Expense | 900 | 1,100 | 800 |
| Accounting Expense | 1,800 | 2,400 | 1,500 |
| Advertising Expense | 960 | 960 | 960 |
|
|
In: Accounting
An income statement for Iyekqv603 Corp. for the first quarter of the year is presented below:
| Iyekqv603 Corp. | ||||
| Income Statement | ||||
| For Quarter Ended March 31 | ||||
| Sales | $ | 910,000 | ||
| Cost of goods sold | 645,000 | |||
| Gross margin | 265,000 | |||
| Selling and administrative expenses | ||||
| Selling | $ | 103,000 | ||
| Administration | 110,000 | 213,000 | ||
| Net operating income | $ | 52,000 | ||
On average, a book sells for $65. Variable selling expenses are $6 per book with the remaining selling expenses being fixed. The variable administrative expenses are 5% of sales with the remainder being fixed.
The contribution margin for Iyekqv603 Corp. for the first quarter is:
Multiple Choice
$135,500
$181,000
$780,500
$774,500
Cerezo Corporation uses the following activity rates from its
activity-based costing to assign overhead costs to
products:
| Activity Cost Pools | Activity Rate | ||
| Assembling products | $ | 3.96 | per assembly hour |
| Processing customer orders | $ | 49.33 | per customer order |
| Setting up batches | $ | 77.33 | per batch |
Data for one of the company's products follow:
| Product Q79P | |
| Number of assembly hours’ | 263 |
| Number of customer orders | 53 |
| Number of batches | 79 |
How much overhead cost would be assigned to Product Q79P using the activity-based costing system? (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
$130.62
$51,594.90
$6,109.07
$9,765.04
Socrates Corporation produces and sells a single product. Data concerning that product appear below:
| Per Unit | Percent of Sales | ||||||||||
| Selling price | $ | 150 | 100 | % | |||||||
| Variable expenses | 90 | 60 | % | ||||||||
| Contribution margin | $ | 60 | 40 | % | |||||||
The company is currently selling 6,400 units per month. Fixed expenses are $214,000 per month. The marketing manager believes that a $5,600 increase in the monthly advertising budget would result in a 150 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?
rev: 03_09_2018_QC_CS-121313, 02_13_2019_QC_CS-158424
Multiple Choice
decrease of $5,600
increase of $3,400
decrease of $3,400
increase of $9,000
In: Accounting
In: Finance
The following is the sales budget for Tesoro Azul, Inc., for the
first quarter of 2016:
| January | February | March | |
| Sales budget | $138,000 | $155,000 | $170,000 |
Credit sales are collected as follows:
70 percent in the month of the sale
25 percent in the month after the sale
5 percent in the second month after the sale
The accounts receivable balance at the end of the previous quarter
was $68,750 ($60,000 of which was uncollected December
sales).
a. Compute the sales for November. (Do not
round intermediate calculations and round your answer to the
nearest whole number, e.g., 32.)
Sales
$
b. Compute the sales for December. (Do not
round intermediate calculations and round your answer to the
nearest whole number, e.g., 32.)
Sales
$
c. Compute the cash collections from sales for
each month from January through March. (Do not round
intermediate calculations and round your answers to the nearest
whole number, e.g., 32.)
| Cash Collection | |
| January | $ |
| February | $ |
| March | $ |
In: Finance
The commissions in dollars earned for the first quarter of last year by the 11 members of the sales staff at Master Chemical Company are: 1650, 1475, 1510, 1670, 1595, 1760, 1540, 1495, 1590, 1625, 1510. • Calculate the mean and the standard deviation of the commissions earned. • Calculate the second quartile and the sixth decile.
In: Statistics and Probability
|
The following is the sales budget for Profit, Inc., for the first quarter of 2018: |
| January | February | March | |||||||
| Sales budget | $ | 213,000 | $ | 233,000 | $ | 256,000 | |||
|
Credit sales are collected as follows: |
| 60 percent in the month of the sale |
| 25 percent in the month after the sale |
| 15 percent in the second month after the sale |
|
The accounts receivable balance at the end of the previous quarter was $97,000 ($67,000 of which was uncollected December sales). |
| a. | Calculate the sales for November. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| b. | Calculate the sales for December. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| c. | Calculate the cash collections from sales for each month from January through March. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
In: Finance
The projected sales of Terus Maju Holdings for the first and second quarter of 2009 are as
follows:
Month Total sales (RM)
January 2 500 000
February 2 600 000
March 2 650 000
April 3 630 000
May 3 850 000
June 3 780 000
July 3 900 000
i. The company makes 20% cash sale, 50% is collected in the month following sales, and 30% is collected in the second month following sales.
ii. Purchases are 60% of sales and are made one month before the sales occur. Payment is
made equally in the two months after purchases.
iii. The company pays RM35 000 each month for wages and RM20 000 each month for rent
and other administrative expenses.
iv. Selling expenses are RM40 000 per month. Tax repayment of RM30 000 are made at the beginning of each quarter.
vi. A machine costing RM70 000 will be bought on May 2009, and the monthly depreciation
is RM200.
vii. Interest on term loan of RM15 000 is payable at the beginning of every quarter.
viii. Beginning balance is RM80 000 and a minimum of RM20 000 must be maintained at all
times.
Prepare a cash budget for Terus Maju Holdings for the second quarter of 2009.
In: Accounting
As the Apple Watch team planned for their US launch for the first quarter of 2015, an estimated monthly demand function for the US market was derived as shown in Figure 1:
QAW =-150,000 -2400PAW +1520PGearS +1200PPebble -1200PiPhone6 +44A
Where QAW is the quantity demanded of the Apple Watch per month, PAWis the price of the Apple Watch (dollars per unit), PGearS is the price of the Samsung Gear S watch (dollars per unit), PPebble is the price of the Pebble Steel (dollars per unit), PiPhone6 is the price of the mid-range iPhone 6 smartphone (dollars per unit), A is the quarterly targeted advertising budget for the Apple Watch (in thousands of Dollars per quarter). The estimated values are:PAW = $349, PGearS = $380, PPebble = $220, PiPhone6 = $299, A = $15,500 . Calculate the following.
In: Economics
4. The direct materials needed for production are expected to be $500,000 for the first quarter, $600,000 for the 2nd quarter, and $640,000 for the third quarter. The company desires to have 10% of next quarter direct material needs on hand at the end of each quarter. How much are expected material purchases in the 2nd quarter?. Single choice.
A. $604,000
B. $64,000
C. $605,000
D. $506,000
5.A company plans to produce 15,000 units in the 1st quarter, and 20,000 units in the 2nd quarter. Each unit requires 3 labor hours. The labor rate is $20 per hour. Assume that the direct labor workforce is not adjusted each quarter. Instead, assume that the company’s direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 50,000 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 50,000 hours anyway. Any hours worked in excess of 50,000 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor. How much does the company pay in total for direct labor in both the 1st and the 2nd quarter? (sum up both quarters). Single choice.
A. $2,600,000
B. $2,200,000
C. $2,300,000
D. $2,000,000
6.A company expects to make purchases of $50,000 in the first quarter and $70,000 in the second quarter. The company expects that 60% of a quarter's purchases will be paid in the quarter of purchase, and 40% will be paid in the following quarter. What are the estimated cash disbursements related to purchases in the 2nd quarter?. Single choice.
A. $48,000
B. $72,000
C. $42,000
D. $62,000
In: Accounting