Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Brandtly's stock. The pension fund manager has estimated Brandtly's free cash flows for the next 4 years as follows: $2 million, $6 million, $8 million, and $15 million. After the fourth year, free cash flow is projected to grow at a constant 7%. Brandtly's WACC is 9%, the market value of its debt and preferred stock totals $54 million; and it has 12 million shares of common stock outstanding.
Write out your answers completely. For example, 13 million should be entered as 13,000,000.
In: Finance
ABC, Inc. provides its employees with a defined benefit pension plan. In 2020, the company made the mistake of not amortizing the cost of prior period services (PSC). Which of the following statements is correct?
a. Total equity is underestimated.
b. The company's net income is overstated.
c. Total debt is overstated.
d. The company's net income is underestimated.
In: Accounting
Total Quality Management Costs are often identified and
categorized in the Prevention,
Appraisal, Failure (PAF) Model.
a. With relevant examples, explain the components of the PAF-
model
b. According to the PAF- Model in which ways can organizations
minimize the total
cost (TC) of quality?
c. Briefly explain the term Benchmarking. Distinguish between the
three types of benchmarking
In: Operations Management
Weighted-average method, assigning costs (continuation of 18-17). For the data in Exercise 18-17, summarize total costs to account for, calculate the cost per equivalent unit for direct materials and conversion costs, and assign total costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process.
In: Statistics and Probability
Contribution Margin approach
Problem: Consider the following situation independently. Fill in the blanks with the appropriate information.
| number of units sold | total sales | number of units sold | variable cost per unit | contribution margin percentage | total fixed costs | net income | return on sales (NI/Sales) |
| $20.00 | 58% | $80,000 | 8% |
In: Accounting
Contents »
X Company has the following data from 2016 and 2017:
| 2016 | 2017 | |
| Total costs | $260,600 | $411,850 |
| Units produced | 32,000 | 57,000 |
Expected production in 2018 is 43,800 units. Using the high-low
method with the 2016 and 2017 data to determine the parameters of
the cost function, what are estimated total costs in 2018?
In: Accounting
All questions below rely on the following assumptions:
? = 20-0.25?
?? = 8 = Average Cost
a)What is the profit maximizing P and Q for the two‐firm Cournot oligopoly? And what is the total profit?
b)Assume that are three firms with equal Qs in this Cournot oligopoly. What is the industry P and Q at the profit maximizing equilibrium? And what is the total profit?
In: Economics
Suppose in Jack’s production function, capital and labor are perfectly substitutable such that q = K + L. Assuming, as we have all term, that the wage rate is w and r is the rental rate of capital, find Jack’s long-run total cost function representing Jacks’ total costs in terms of output, TC(q) = C(q)
In: Economics
[The following information applies to the questions displayed below.]
Vista Electronics, Inc. manufactures two different types of coils used in electric motors. In the fall of the current year, Erica Becker, the controller, compiled the following data.
Sales forecast for 20x0 (all units to be shipped in 20x0):
| Product | Units | Price | ||||
| Light coil | 65,000 | $ | 350 | |||
| Heavy coil | 45,000 | 450 | ||||
Raw-material prices and inventory levels:
| Raw Material | Expected Inventories, January 1, 20x0 | Desired Inventories, December 31, 20x0 | Anticipated Purchase Price | ||||||||
| Sheet metal | 43,000 | lb. | 47,000 | lb. | $ | 13 | |||||
| Copper wire | 40,000 | lb. | 43,000 | lb. | 8 | ||||||
| Platform | 6,500 | units | 7,500 | units | 4 | ||||||
Use of raw material:
| Amount Used per Unit | |||||||
| Raw Material | Light Coil | Heavy Coil | |||||
| Sheet metal | 4 | lb. | 5 | lb. | |||
| Copper wire | 2 | lb. | 3 | lb. | |||
| Platform | 1 | unit | |||||
Direct-labor requirements and rates:
| Product | Hours per Unit | Rate per Hour | |||||
| Light coil | 6 | $ | 10 | ||||
| Heavy coil | 8 | 15 | |||||
Finished-goods inventories (in units):
| Product | Expected January 1, 20x0 | Desired December 31, 20x0 | |||||
| Light coil | 30,000 | 35,000 | |||||
| Heavy coil | 9,000 | 10,000 | |||||
Production overhead:
| Overhead Cost Item | Activity-Based Budget Rate | ||
| Purchasing and material handling | $ | 0.90 | per pound of sheet metal and copper wire purchased |
| Depreciation, utilities, and inspection | $ | 8.00 | per coil produced (either type) |
| Shipping | $ | 2.00 | per coil shipped (either type) |
| General production overhead | $ | 6.00 | per direct-labor hour |
A. Prepare the sales budget (in dollars) for 20x0.
|
|||||||||||
B. Prepare the production budget (in units) for 20x0.
|
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C. Prepare the raw material purchases budget (in quantities) for
20x0.
|
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D. Prepare the raw material purchases budget (in dollars) for
20x0.
|
|||||||||||||||||||||||||
E. Prepare the direct-labor budget (in dollars) for
20x0.
|
|||||||||||||||||||||||||||||||
F. Prepare the production-overhead budget (in dollars) for 20x0.
(Round "Cost Driver Rate" to 2 decimal
places.)
|
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In: Accounting
Remember that great app you wrote for Yogurt Yummies (Lab 10-2). They want you to enhance the C++ console application that calculates and displays the cost of a customer’s yogurt purchase. Now they need to process multiple sales. Do not change any logic for handling a single sale. Make the following enhancements:
● Add "v2" to the application output header and close.
● Declare and initialize overall totals including:
ü Number of sales.
ü Overall number of yogurts sold.
ü Overall sale amount after discount.
ü Overall tax paid.
ü Overall sale total.
● Enclose the logic for a single sale with a sentinel loop that continues to process sales until the user enters 'n'.
● After calculating sale totals, update overall totals.
● When the user enters the sentinel value ('n'), print overall totals using formatted output manipulators (setw, left/right). Run the program with invalid and valid inputs, and at least three sales. The output should look like this:
Welcome to Yogurt Yummies, v2
-----------------------------
Enter another yogurt purchase (y/n)? y
Sale 1
----------------------------------------
Enter the number of yogurts purchased (1-9): 11
Error: '11' is an invalid number of yogurts.
Enter the number of yogurts purchased (1-9): 2
Enter the percentage discount (0-20): 22
Error: '22.00' is an invalid percentage discount.
Enter the percentage discount (0-20): 4
Yogurts: 2
Yogurt cost ($): 3.50
Discount (%): 4.00
Subtotal ($): 7.00
Total after discount ($): 6.72
Tax ($): 0.40
Total ($): 7.12
Enter another yogurt purchase (y/n)? y
Sale 2
----------------------------------------
Enter the number of yogurts purchased (1-9): 5
Enter the percentage discount (0-20): 10
Yogurts: 5
Yogurt cost ($): 3.50
Discount (%): 10.00
Subtotal ($): 17.50
Total after discount ($): 15.75
Tax ($): 0.94
Total ($): 16.70
Enter another yogurt purchase (y/n)? y
Sale 3
----------------------------------------
Enter the number of yogurts purchased (1-9): 7
Enter the percentage discount (0-20): 20
Yogurts: 7
Yogurt cost ($): 3.50
Discount (%): 20.00
Subtotal ($): 24.50
Total after discount ($): 19.60
Tax ($): 1.18
Total ($): 20.78
Enter another yogurt purchase (y/n)? n
Overall totals
========================================
Sales: 3
Yogurts: 14
Total after discount ($): 42.07
Tax ($): 2.52
Total ($): 44.59
End of Yogurt Yummies, v2
This is from yogurt Yummies V1
Welcome to Yogurt Yummies
-------------------------
Enter the number of yogurts purchased (1-9): 12
Error: '12' is an invalid number of yogurts.
Enter the number of yogurts purchased (1-9): 4
Enter the percentage discount (0-20): 30
Error: '30.00' is an invalid percentage discount.
Enter the percentage discount (0-20): 10
Yogurts: 4
Yogurt cost ($): 3.50
Discount (%): 10.00
Subtotal ($): 14.00
Total after discount ($): 12.60
Tax ($): 0.76
Total ($): 13.36
End of Yogurt Yummies
In: Computer Science