Ferrari's IPO and WACC. Ferrari, the famous high-performance automotive group, launched its initial public offering (IPO) on October 20, 2015. Although the share price had initially risen to over 62 euros () per share, by the end of the year it had settled to 54 euros (). Ferrari had been owned by Fiat (Italy), and had never calculated its own cost of capital before one independent of Fiat. It now needed to, and one of its first challenges was estimating its beta. With only two months of trading to base it on, the corporate treasury group had started with what were considered "comparable firms", which for Ferrari, meant firms in the luxury goods industry, not automotive. Luxury goods were historically less volatile than the market, so the initial guess on Ferrari's beta was 0.76. Use the assumptions in the popup table,EEto answer the following questions a. What is Ferraris cost of debt, after-tax, in euros? b. What is Ferrari's cost of equity in euros? c. What is Ferrari's market capitalization? d. What is Ferraris total value of equity outstanding? e. What proportion of Ferrari's capital structure is equity?
f. What proportion of Ferrari's capital structure is debt? g. What is Ferrari's weighted average cost of capital? h. What is Ferrari's WACC if its beta was higher, like other automotive companies, say 1.33 ?

Answers

Answer 1

By using the assumptions in the popup table:

a. The cost of debt for Ferrari, after-tax, in euros is 3.4%.

b. The cost of equity for Ferrari in euros is 6.95%.

c. Ferrari's market capitalization is approximately €21 billion.

d. Ferrari's total value of equity outstanding is approximately €19.7 billion.

e. The proportion of Ferrari's capital structure that is equity is approximately 93.2%.

f. The proportion of Ferrari's capital structure that is debt is approximately 6.8%.

g. Ferrari's weighted average cost of capital is 5.48%.


h. Ferrari's WACC, if its beta was higher, like other automotive companies, say 1.33, is 6.13%.

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Related Questions

what is the unemployment rate? multiple choice question. the number of unemployed people in the united states the percentage of the labor force that is unemployed the percentage of the population that is unemployed the number of people currently looking for work

Answers

The unemployment rate is the percentage of the labor force that is unemployed.

What is the unemployment rate?

The unemployment rate is the percentage of the labor force that is unemployed. The labor force is defined as the number of people who are currently employed or actively seeking employment. It does not include those who are not actively seeking work or those who are not able to work for various reasons.

The unemployment rate is an important economic indicator that reflects the health of the labor market. It is calculated by dividing the number of unemployed individuals by the total labor force and then multiplying by 100 to get a percentage.

A low unemployment rate is typically seen as a positive sign for the economy, while a high unemployment rate can indicate a struggling labor market.

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37. Bill incorporated his business four years ago and owns 100% of its stock. The corporation distributes a piece of land, used as a parking lot for customers, to Bill. Bill’s basis in his stock is $21,000, and the land has a basis of $7,000 and a value of $24,000, and E&P is $5,000.
a. What are the tax consequences to the corporation?
b. To Bill?

Answers

a) The corporation will have a net recognized gain of $12,000

b) Bill will be required to pay capital gains tax on the $3,000 realized gain.

How to calculate

a. The corporation distributes land to Bill that has a basis of $7,000 and a value of $24,000. The corporation must recognize a gain of $17,000 ($24,000 - $7,000) on the distribution of land to Bill.

However, the corporation may reduce this gain by the amount of E&P, which is $5,000.

Therefore, the corporation will have a net recognized gain of $12,000 ($17,000 - $5,000).

The corporation must pay corporate tax on the recognized gain.

b. Bill will receive land with a fair market value of $24,000. Because the land is considered a dividend, the basis of the land will be the same as the basis of Bill's stock in the corporation.

As a result, Bill's basis in the land will be $21,000. This suggests that Bill has a realized gain of $3,000 ($24,000 - $21,000) as a result of receiving the land.

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mohling company typically sells subscriptions on an annual basis, and publishes eight times a year. the magazine sells 60,000 subscriptions in january at $10 each. recording the sale of the subscriptions involves a(n)

Answers

The Mohling Company typically sells subscriptions on an annual basis and publishes eight times a year. The magazine sells 60,000 subscriptions in January at $10 each. Recording the sale of the subscriptions involves a journal entry.

Recording the sale of subscriptions involves the following journal entry:

Debit Cash for $600,000

Credit Unearned Subscription Revenue for $600,000

The company should record the cash received from the subscribers as a debit to Cash account, which will increase the Cash account on the balance sheet. Since the company receives payment in advance for the subscription, the revenue should be recorded as unearned, i.e., it is a liability on the balance sheet, so the company should credit the Unearned Subscription Revenue account. The journal entry for the sale of subscriptions is crucial as it enables the company to record the cash received and the liability created due to the sale of subscriptions.

The entry also helps in recognizing the income earned from subscriptions as the company delivers the magazines throughout the year.In summary, the sale of subscriptions requires a journal entry that debits Cash account and credits Unearned Subscription Revenue account. The journal entry enables the company to record the cash received, liability created, and revenue recognized over the year.

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according to one of the most important elements of porter's diamond model, the presence of industries that provide either materials or components, or that support the activities of the primary industry are present is a prerequisite for a country to support enterprises that can successfully compete in international markets group of answer choices true false

Answers

The given statement "According to one of the most important elements of Porter's diamond model, the presence of industries that provide either materials or components, or that support the activities of the primary industry are present is a prerequisite for a country to support enterprises that can successfully compete in international markets" is true.

Porter's Diamond Model is a model that analyses the competitive advantages of an economy, especially in the international market. The Porter's Diamond Model, also known as the Diamond Model or Porter's theory of the National Competitive Advantage of Countries, explains how factors like the following four elements interact to shape the competitiveness of a nation: Factor conditions, Demand conditions, Related and supporting industries, Firm strategy, structure, and rivalry.

The presence of industries that provide materials or components, or that support the activities of the primary industry is one of the most important elements of Porter's diamond model. It means that a country needs to have a local supplier network, i.e. suppliers that can provide materials or components to the companies in the primary industry. The suppliers and the companies work together to create value-added products or services, which is essential for competitiveness in international markets.

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A bond issued by the state of Alabama is priced to yield 6.35%. If you are in the 20% tax bracket, this bond would provide you with an equivalent taxable yield of _________.
Multiple Choice
5.08%
7.94%
none of these options
7.35%

Answers

A bond issued by the state of Alabama is priced to yield 6.35%. If you are in the 20% tax bracket, this bond would provide you with an equivalent taxable yield of 7.94%. The correct answer B.

The equivalent taxable yield can be calculated as:

Taxable Yield = Tax-free Yield / (1 - Tax Rate)

Substituting the given values, we get:

Taxable Yield = 6.35% / (1 - 0.20) = 7.94%

Therefore, the answer is 7.94%, meaning that an investor in the 20% tax bracket would need to earn 7.94% on a taxable bond to achieve the same after-tax return as the tax-exempt Alabama bond.

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Is capacity available to apply these approaches and
methodologies, or would it need to be developed or externally
sourced?

Answers

Yes, capacity is available to apply these approaches and methodologies.

However, depending on the specific approach or methodology, it may need to be developed or sourced externally. For example, if the approach or methodology requires a specialized set of skills or expertise, then it may need to be developed internally or sourced from an external provider.

The availability of capacity to apply agile approaches and methodologies would depend on the specific organization and its existing resources, skills, and capabilities. In some cases, an organization may have the necessary capacity and expertise to adopt agile practices and implement them successfully. In other cases, the organization may need to develop new capacity by training employees, hiring new talent, or creating new teams with relevant skills and expertise. Alternatively, the organization may choose to externally source capacity by working with external consultants or partnering with specialized service providers who can help implement agile methodologies. Ultimately, the decision of whether to develop internal capacity or externally source it will depend on the specific needs and priorities of the organization.

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A company wants to sell 500 shares to the public and receive 5 bids. What is the final offer price? Bidder Quantity Price
A 200 shares $12
B 300 shares $11
C 400 shares $15
D 400 shares $10
E 100 shares $6

Answers

The final offer price for the company to sell 500 shares is $4135.

To calculate the final offer price for a company selling 500 shares and receiving 5 bids, you can follow these steps:

Sort the bids in descending order of price per share.

Bids: C (Price: $15) A (Price: $12) B (Price: $11) D (Price: $10) E (Price: $6)

Add up the total number of bids received:

Total bids: 400 + 200 + 300 + 400 + 100 = 1500

Calculate the weighted average price per share, based on the number of bids and the bid prices:

Weighted average price = (400*15 + 200*12 + 300*11 + 400*10 + 100*6) / 1500

                     = 12400 / 1500

                     = $8.27 per share

Finally, multiply the weighted average price per share by the number of shares being sold to get the final offer price:

Final offer price = $8.27 per share * 500 shares

                 = $4135

Therefore, the final offer price for the company to sell 500 shares is $4135.

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Ann, in exchange for her assistance to Steve had also her own questions. At Hingham, additionally to receiving a generic product X as raw material, they produced basically a generic Product "Z", being sold to outside markets mainly.
The generic Product Z had no variants, it was well demanded by the market and the customers as produced by Hingham. Ann was using at Hingham´s Division a standard costing system in its factory for Product Z.
But Ann have had a few data collection problems when explaining what she required from the manufacturing and financial accountants responsibles, and asked Steve to help her on the challenge, which she considered ready to be estimated and / or solved with the information already in hand.
From the following partial information that came from the manufacturing department, make the necessary calculations to supply Ann with the missing numbers:
1. Overhead volume variance, December: $1,500 unfavorable.
2. Standard machine-hours, December: 4,500 hrs.
3. Total overhead cost variance, December: $1,300 unfavorable.
4. Standard overhead cost, December: $22,500.
5. Standard machine-hours per month, at normal volume: 5,000 hrs.
6. Predetermined overhead rate per standard machine-hour: A.
7. Actual total overhead cost, December: B.
B. Overhead spending variance, December: C.
9. Budgeted overhead cost, December: D.
10. Budgeted fixed overhead cost per month: E.
11. Budgeted variable overhead cost per standard machine hour: F.
12. Budgeted total overhead cost, normal month: G.

Answers

The predetermined overhead rate per standard machine-hour is $4.50. The actual total overhead cost in December is $23,800. The overhead spending variance in December is $500 favorable. The budgeted overhead cost in December is $23,300, fixed overhead cost per month is $11,250, variable overhead cost per standard machine-hour is $2.50 and total overhead cost in a normal month is $22,500.

A. The predetermined overhead rate per standard machine-hour is $4.50 ($22,500/5,000 hours).

B. The actual total overhead cost in December is $23,800 ($22,500 + $1,500).

C. The overhead spending variance in December is $500 favorable ($23,800 - $23,300).

D. The budgeted overhead cost in December is $23,300 ($5,000 hours x $4.50 rate).

E. The budgeted fixed overhead cost per month is $11,250 ($22,500/2 months).

F. The budgeted variable overhead cost per standard machine-hour is $2.50 ($22,500/9,000 hours).

G. The budgeted total overhead cost in a normal month is $22,500 ($11,250 + 11,250).

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After purchasing an item from Walmart.com, you might have seen
that the website shows recommendations based on similar purchases
by other customers. How does Amazon do this?
Group of answer choices
Weighted Moving Average
Simple Exponential Smoothing
Artificial Intelligence
Focus groups

Answers

Amazon uses Artificial Intelligence (AI) to show recommendations based on similar purchases by other customers. Correct answer is A: Artificial Intelligence.

Amazon has sophisticated machine learning algorithms that analyze data from user interactions on the website, such as browsing history, search queries, and purchase history, to generate personalized product recommendations. These algorithms take into account various factors such as the user's past purchases, the items currently in their shopping cart, and the preferences of users with similar profiles to provide recommendations that are tailored to the individual user.

Additionally, Amazon also uses collaborative filtering techniques to compare the user's preferences with those of other users who have made similar purchases, to generate recommendations based on items that are frequently purchased together.

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The actual number of patients at Providence Emergency Medical Clinic for the first six weeks of this year fallows Week Actual No. of Patients 45 2 48 57 39 46 55 Clinic administrator Dana Schniederjans wants you to forecast patient numbers at the clinic for week 7 by using this data. You decide to use a weighted moving average method to find this forecast. Your method uses four actual demand levels, with weights of 0 333 on the present period, 0.250 one period ago, 0 250 two periods ago, and 0 167 three periods ago a) What is the value of your forecast? The value of the forecast is patients (round your response to two decimal places).

Answers

The value of our forecast for week 7 using the weighted moving average method is 48.084.

What exactly is emergency care in the medical field?

Emergency care in the medical field refers to immediate medical treatment provided to patients suffering from sudden and severe medical conditions or injuries that require urgent attention, often in an emergency department or ambulance setting.

To calculate the weighted moving average forecast for week 7, we need to multiply the actual demand levels for the past four weeks by their respective weights and then add up the results. Using the given weights of 0.333, 0.250, 0.250, and 0.167 for the present period, one period ago, two periods ago, and three periods ago, respectively, we have:

Forecast for Week 7 = (0.333 × 55) + (0.250 × 46) + (0.250 × 39) +

(0.167 × 57)

= 18.315 + 11.5 + 9.75 + 9.519

= 48.084

Therefore, the value of our forecast for week 7 using the weighted moving average method is 48.084.

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During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: * \$3 per unit variable;
$249,000
fixed each year. The company's
$38
unit product cost is computed as follows: Production and cost data for the first two years of operations are: Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year.

Answers

The difference in net operating income under absorption costing and variable costing is due to the treatment of fixed manufacturing overhead. Absorption costing includes fixed overhead in the product cost, while variable costing expenses fixed overhead in the period it is incurred.

What exactly is a variable cost?

Variable cost is a type of cost that changes proportionally with the level of activity or output of a business. This means that as the level of production or sales increases, variable costs also increase, and as production or sales decrease, variable costs decrease.

We need to calculate the variable costing net operating income and the unit product cost using variable costing for both years.

Variable costing means that only the variable manufacturing costs are included in the product cost, and fixed manufacturing costs are treated as period costs and expensed in the period in which they are incurred.

Unit product cost using variable costing for both years:

Year 1:

Direct materials per unit: $11

Direct labor per unit: $8

Variable manufacturing overhead per unit: $2

Unit product cost = $11 + $8 + $2 = $21

Year 2:

Direct materials per unit: $12

Direct labor per unit: $9

Variable manufacturing overhead per unit: $2

Unit product cost = $12 + $9 + $2 = $23

Variable costing net operating income in Year 1 and Year 2:

Year 1:

Unit sales: 100,000

Unit variable cost: $21

Total variable cost: $2,100,000

Total fixed cost: $249,000

Net operating income: $100,000 - $2,100,000 - $249,000 = -$2,249,000

Year 2:

Unit sales: 120,000

Unit variable cost: $23

Total variable cost: $2,760,000

Total fixed cost: $249,000

Net operating income: $120,000 - $2,760,000 - $249,000 = -$2,889,000

Reconciliation of absorption costing and variable costing net operating income figures for each year:

The difference between the net operating income figures under absorption costing and variable costing is due to the difference in accounting for fixed manufacturing overhead. Under absorption costing, fixed manufacturing overhead is included in the product cost and is allocated to units based on the number of units produced. Under variable costing, fixed manufacturing overhead is treated as a period cost and is expensed in the period in which it is incurred.

To reconcile the two net operating income figures for each year, we need to calculate the amount of fixed manufacturing overhead that was included in the product cost and therefore included in the inventory under absorption costing.

Year 1:

Fixed manufacturing overhead included in product cost: $6 x 100,000 units = $600,000

Ending inventory under absorption costing: 20,000 units x $38 per unit = $760,000

Fixed manufacturing overhead included in ending inventory: $600,000 x (20,000/100,000) = $120,000

Absorption costing net operating income: -$2,249,000 + $120,000 = -$2,129,000

Year 2:

Fixed manufacturing overhead included in product cost: $6 x 120,000 units = $720,000

Ending inventory under absorption costing: 30,000 units x $38 per unit = $1,140,000

Fixed manufacturing overhead included in ending inventory: $720,000 x (30,000/120,000) = $180,000

Absorption costing net operating income: -$2,889,000 + $180,000 = -$2,709,000

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Katrina, age 16, is claimed as a dependent by her parents.
During 2022, she earned $5,600 as a checker at a grocery store. Her
standard deduction is $5,950
Group of answer choices
False
True

Answers

Katrina, age 16, is claimed as a dependent by her parents and her standard deduction is $5,950, and she earned $5,600 as a checker at a grocery store in 2022.The statement given above is true. Parent or guardian can list the dependent's income on their own income tax return.

A dependent's standard deduction is set by the IRS, and it differs depending on the type of tax return being filed. The standard deduction for a dependent in the tax year 2022 was $5,950. If a dependent is able to earn income during the year, the amount they earn is subject to taxation. The parent or guardian can list the dependent's income on their own income tax return, which will be taxed at the parent's or guardian's income tax rate.

In addition to income, there are a few other rules that must be followed in order for a dependent to be considered a dependent on someone else's income tax return. Katrina, age 16, who earned $5,600 as a checker at a grocery store during 2022, is claimed as a dependent by her parents, and her standard deduction is $5,950.

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If Ricky purchased a $50,000 account receivable for $45,000 last year and during the current year he collected $46,000 on the account, what are the tax consequences to Ricky associated with the collection of the account receivable? No subsequent collections are expected.
a. $4,000 loss
b. $4,000 gain
c. $5,000 loss
d. $5,000 gain
e. $6,000 gain
f. $1,000 gain

Answers

Since Ricky purchased the account receivable for $45,000 and collected $46,000 during the current year, he would realize a gain of $1,000. (Option F).

What is the Tax Consequence to Ricky?

The tax consequences to Ricky associated with the collection of the account receivable depend on the tax treatment of the transaction.

If Ricky treated the purchase of the account receivable as a capital asset, the gain or loss on the sale would be a capital gain or loss.

In this case, since Ricky purchased the account receivable for $45,000 and collected $46,000 during the current year, he would realize a gain of $1,000. The tax consequences of this gain would depend on Ricky's holding period for the account receivable and his tax bracket.

If Ricky treated the purchase of the account receivable as a business asset, the gain or loss on the sale would be ordinary income or loss.

In this case, since Ricky purchased the account receivable for $45,000 and collected $46,000 during the current year, he would realize a gain of $1,000. This gain would be taxed at Ricky's ordinary income tax rate, which again depends on his tax bracket.

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what are three benefits of a smart shopping campaign? choose three. select 3 correct responses you reach customers across platforms you set up campaigns manually you can optimize on goals using manual signals easy integration helps you simplify campaign management you use real-time signals to help you optimize goals

Answers

Three benefits of a smart shopping campaign are:

1. You reach customers across platforms: Smart shopping campaigns enable you to reach potential customers on various platforms, increasing your chances of driving sales and engagement.

2. Easy integration helps you simplify campaign management: Smart shopping campaigns streamline the process of setting up and managing your campaigns by automatically optimizing your bids, targeting, and ad placements.

3. You use real-time signals to help you optimize goals: By utilizing real-time data and machine learning algorithms, smart shopping campaigns continuously adjust and improve performance to achieve your desired objectives, such as increasing conversions or return on ad spend.

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To read the Introduction, Chapter 1, and Appendix A in the Bargaining for Advantage book. answer a few questions regarding the Introduction and Chapter 1.
Question 1: Summarize your results from the Bargaining Styles Assessment tool in Appendix A. Identify strengths/weaknesses and other observations about your bargaining style, as explained by the author in the Appendix and Chapter 1.
Question 2: Based on what you read and what you think you know about your own bargaining style, do you agree/disagree with the author’s comments on your style? Be specific in your responses, and explain why you agree/disagree with different author comments.
Question 3: What are four key habits of thought that everyone can adopt to improve their negotiation results? List and explain each.
Question 4: "Competitive people are more effective negotiators than cooperative people." Is this statement true or false? Explain your answer with evidence from Chapter 1.

Answers

1:According to the Bargaining Styles Assessment tool in Appendix A, my dominant bargaining style is the problem-solving approach. I scored relatively high in all bargaining styles, indicating flexibility in my approach.

However, my weakness lies in the avoidance style, which means that I tend to shy away from confrontations. The author explains that problem-solving style negotiators tend to be effective in creating value and building relationships, but may struggle in situations where tough decisions need to be made quickly.

2:I agree with the author's comments on my problem-solving style, particularly in terms of valuing relationships and creating value.

However, I believe that I am not always as flexible as the assessment suggests. I tend to fall back on problem-solving even in situations where it may not be the most effective approach. Furthermore, while I may struggle in high-pressure situations, I believe that I can make tough decisions quickly when necessary.

3:Four key habits of thought that everyone can adopt to improve their negotiation results are:

Being open to different perspectives and considering the other party's interests.Being proactive and preparing thoroughly before the negotiation.Being creative and flexible in finding solutions.Being confident but also willing to listen and compromise.

4:This statement is false. While competitive people may be effective negotiators in certain situations, such as when claiming value in a distributive negotiation, cooperation is essential in creating value and building relationships in negotiations.

The author explains that effective negotiators understand that negotiation is not a zero-sum game and that cooperation can lead to better outcomes for all parties involved. Additionally, the author notes that overly competitive negotiators may harm relationships and fail to see the potential for value creation.

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A company expects to sell D units of a certain product per year. Sales are assumed to be at a steady rate with no shortages allowed. Each time an order for the product is placed, an ordering cost of K dollars is incurred. Each item costs p dollars, and the holding cost is h dollars per item per year. The order quantity (the number of items in each order) is x > 0.

A) Write expression for inventory cost (combined ordering cost, purchasing cost, holding cost).

B) What equation holds when the inventory cost is minimized?

Answers

The expression for inventory cost includes ordering, purchasing, and holding costs is equals to K * (D/x) + p * x + (h/2) * x, the equation that holds when the inventory cost is minimized is p * x^2 + h * x = K * D.

The inventory cost consists of three components: the ordering cost, the purchasing cost, and the holding cost. If the company sells D units of the product per year and orders x items at a time, it will need to place D/x orders per year. Therefore, the ordering cost can be expressed as:

Ordering cost = K * (D/x)

The purchasing cost is simply the cost of the products purchased, which is proportional to the number of items ordered. Therefore, the purchasing cost can be expressed as:

Purchasing cost = p * x

If the company orders x items at a time and sells D units per year, on average there will be x/2 items held in inventory at any given time (assuming a steady rate of sales). Therefore, the holding cost can be expressed as:

Holding cost = (h/2) * x

The total inventory cost is the sum of the ordering cost, the purchasing cost, and the holding cost:

Total inventory cost = K * (D/x) + p * x + (h/2) * x

To minimize the inventory cost, we need to find the value of x that minimizes the total inventory cost equation. To do this, we can take the derivative of the total inventory cost equation with respect to x and set it equal to zero:

d/dx (K * (D/x) + p * x + (h/2) * x) = 0

-K * D/x^2 + p + h/2 = 0

-K * D + p * x^2 + h * x = 0

p * x^2 + h * x = K * D

This equation holds when the inventory cost is minimized, and can be solved for x to determine the optimal order quantity.

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On October 1, 2017, Bramble Company enters into a contract to transfer a product to Choco Company on November 30, 2017. It is agreed that Choco will pay the full price of $34,500 in advance on October 15, 2017. Choco pays on October 15, 2017, and Bramble delivers the product on November 30, 2017. Prepare the journal entries required for Bramble in 2017

Answers

On October 15, 2017, Bramble Company will record the receipt of the payment its journal entry:

Debit: Cash $34,500
Credit: Accounts Receivable $34,500

On November 30, 2017, Bramble Company will record the delivery of the product in its journal entry:
Debit: Inventory $34,500
Credit: Accounts Receivable $34,500

The fundamental units of accounting, known as journal entries, are used to document financial transactions in a company's general ledger. Each journal entry consists of a minimum of two accounts—a debit and a credit—and denotes a value transfer between those accounts.

The basic format for a journal entry is as follows:

Date Account Debited Account CreditedAmount

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Jackson Co. has the following balance sheet as of December 31, 2001.
Assets:
Claims:
Current assets
$ 600,000
Accounts payable
$ 100,000
Fixes assets
400,000
Accruals
100,000
Notes payable
100,000
Long-term debt
300,000
___________
Total common equity
400,000
Total assets
$1,000,000
Total claims
$1,000,000
In 2001, the company reported sales of $5 million, net income of $100,000, and dividends of $60,000. The company anticipates its sales will increase 20 percent in 2002 and its dividend payout will remain at 60 percent. Assume the company is at full capacity, so its assets and spontaneous liabilities will increase proportionately with the increase in sales.
Assume the company uses the AFN formula and all additional funds needed (AFN) will come from issuing new long term debt. Given its forecast, how much long-term debt will the company have to issue in 2002? Show work

Answers

The AFN is negative, this means that the company does not need to issue any new long-term debt in 2002. In fact, the company has an excess of $80,000 that it can use to pay off some of its existing long-term debt.

To find out how much long-term debt the company will have to issue in 2002, we need to use the AFN formula:

AFN = (A*/S0)ΔS - (L*/S0)ΔS - M(S1)(RR)

Where:
- A* is the assets tied directly to sales
- S0 is the current sales level
- ΔS is the change in sales
- L* is the spontaneous liabilities tied directly to sales
- M is the profit margin
- S1 is the new sales level
- RR is the retention ratio

Given the information in the question, we can plug in the values:

AFN = ($1,000,000/$5,000,000)(0.20)($5,000,000) - ($200,000/$5,000,000)(0.20)($5,000,000) - ($100,000)($5,000,000 + $1,000,000)(0.40)

AFN = $200,000 - $40,000 - $240,000

AFN = -$80,000

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what are the operator instructions for a heat sealer for a medical device to ensure a repeatable stong seal from start to finish?

Answers

To ensure a repeatable strong seal from start to finish when using a heat sealer for a medical device, the operator should follow these instructions:

Set the heat sealer to the appropriate temperature and time settings based on the material and thickness of the packaging.Place the medical device in the packaging material, making sure it is properly positioned and free of any wrinkles or air pockets.Align the sealing jaws of the heat sealer with the packaging material, ensuring a consistent and even pressure throughout the sealing process.Activate the heat sealer and allow it to complete the sealing cycle without interruption.After sealing, inspect the seal for any defects or weak spots, and if necessary, adjust the temperature and time settings for the next sealing cycle.

To achieve a strong and consistent seal, it is important to set the heat sealer to the appropriate temperature and time settings for the specific packaging material and thickness. This ensures that the sealing process is effective and that the seal remains intact during transportation and storage.

Proper positioning of the medical device in the packaging material, as well as consistent and even pressure throughout the sealing process, also contribute to a strong seal. Finally, inspection of the seal for defects or weak spots allows for adjustments to be made for the next sealing cycle, resulting in a repeatable and consistent seal from start to finish.

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Una señora compra 100 pantalones y 100 camisas, los pantalones le cuestan $5. 00 cada uno y las camisas a $ 3. 00 cada una, paga de transporte $ 10. 00 de local $ 100. 00 mensual, de mano de hora $365. 00 mensual en cuanto venderá cada uno de los pantalones y las camisas, hacer el cálculo respectivo

Answers

It is unclear what is meant by "$365 per hour. 00 monthly". If it means that the lady incurs a monthly cost of $365.00 per hour that she spends selling the clothes, then we would need to know how many hours she spends selling the clothes in order to calculate her total cost and profit.

Let's calculate the total cost of the pants:

100 pants * $5.00/pant = $500.00

And the total cost of the shirts:

100 shirts * $3.00/shirt = $300.00

The total cost of the clothes is the sum of the cost of the pants and shirts:

$500.00 + $300.00 = $800.00

Adding the cost of transportation, we get:

$800.00 + $10.00 = $810.00

The lady also incurs a monthly cost of $100.00, so her total cost for the month is:

$810.00 + $100.00 = $910.00

Assuming the lady sells each pant and shirt for the same price, she would need to sell each item for:

$910.00 / 200 items = $4.55 per item

If the lady sells each item for $4.55, her revenue would be:

200 items * $4.55/item = $910.00

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Note:- Question in English

A lady buys 100 pants and 100 shirts, the pants cost her $5. 00 each and the shirts $3.00 each, she pays $10.00 for transportation, $100.00 locally, monthly, and $365 per hour. 00 monthly as she will sell each of the pants and shirts, do the respective calculation.

what would be the most advantageous education credit for the
cumberlands if their modified AGI was $165,000?

Answers

If your 2009 adjusted gross income is more than return). If your MAGI is $90,000 or above, you cannot claim a credit.

What is a credit?

A credit report is a summary of your financial history. It comprises information such as mortgages, school loans, and credit cards in your name. Lenders use this information to make choices about you. A credit score varies from 300 to 850 and is a numerical rating that assesses a person's ability to repay a loan. A better credit score indicates that a borrower is less risky and more likely to make on-time payments.

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Maya Company has seen slow but steady growth over the past 10 years. Maya Company started small, and all of the employees were family members. However, the business is now big enough that it is important to start setting up a more sophisticated internal control structure, including segregation of duties. What are the three specific functions that must be kept separate?

Answers

The three specific functions that must be kept separate in an internal control structure are Authorization, Custody, Recording and Reconciliation.

Authorization: This involves approving and granting permissions for various transactions and activities within the company. It includes functions such as approving purchases, authorizing financial transactions, and granting access to sensitive information or resources.

Custody: This function involves the physical handling, storage, and safeguarding of assets and resources owned by the company. It includes activities such as receiving and storing inventory, handling cash and other financial assets, and maintaining physical control over valuable equipment or documents.

Recording and Reconciliation: This function involves the recording and documentation of transactions, maintaining accurate financial records, and reconciling accounts to ensure accuracy and completeness.

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in 2022, brent purchased three season baseball tickets in the exclusive sky club. brent paid $60,000 for the tickets, and then gave one ticket each to his two brothers. has brent made a taxable gift and, if so, in what amount?

Answers

In 2022, brent purchased three season baseball tickets in the exclusive sky club. Brent paid $60,000 for the tickets, and then gave one ticket each to his two brothers. Has Brent made a taxable gift: Yes, Brent has made a taxable gift and the taxable gift is $30,000.

The gift consists of three tickets, with a combined value of $60,000. Each ticket has an individual value of $20,000. The gift tax applies to any transfer of property where the donor does not receive any consideration in return. Since Brent received no consideration in return for the tickets he gifted to his brothers, the gift is taxable.

The gift tax is calculated by subtracting the annual gift exclusion ($15,000 per person, or $30,000 in Brent's case) from the total value of the gift ($60,000). The total amount of taxable gift is $30,000.

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Willow Company produces lawn mowers. One of its plants produces two versions of mowers: a basic model and a deluxe model. The deluxe model has a sturdier frame, a higher horsepower engine, a wider blade, and mulching capability. At the beginning of the year, the following data were prepared for this plant:
Basic Model
Deluxe Model
Expected quantity
40,000
20,000
Selling price
$180
$360
Prime costs
$80
$160
Machine hours
5,000
5,000
Direct labor hours
10,000
10,000
Engineering support (hours)
1,500
4,500
Receiving (orders processed)
250
500
Materials handling (number of moves)
1,200
4,800
Purchasing (number of requisitions)
100
200
Maintenance (hours used)
1,000
3,000
Paying suppliers (invoices processed)
250
500
Setting up equipment (number of setups)
16
64
Additionally, the following overhead activity costs are reported:
Maintaining equipment
$114,000
Engineering support
120,000
Materials handling
?
Setting up equipment
96,000
Purchasing materials
60,000
Receiving goods*
40,000
Paying suppliers
30,000
Providing space
20,000
Total
$ ?
* Receiving activity cost includes allocated share of forklift operators’ salaries.
Facility-level costs are allocated in proportion to machine hours (provides a measure of time the facility is used by each product). Receiving and materials handling use three inputs: two forklifts, gasoline to operate the forklift, and three operators. The three operators are paid a salary of $40,000 each. The operators spend 25% of their time on the receiving activity and 75% on moving goods (materials handling). Gasoline costs $3 per move. Depreciation amounts to $8,000 per forklift per year.
Required:
Be sure to read the instructions on each panel for additional guidance.
(Note: Round answers to two decimal places.)
1.
Calculate the cost of the materials handling activity. Label the cost assignments as driver tracing or direct tracing. Identify the resource drivers.
2.
Calculate the cost per unit for each product by using direct labor hours to assign all overhead costs.
3.
Calculate activity rates, and assign costs to each product. Calculate a unit cost for each product and compare these costs with those calculated in Requirement 2.
4.
Calculate consumption ratios for each activity.
5.
CONCEPTUAL CONNECTION: Explain how the consumption ratios calculated in Requirement 4 can be used to reduce the number of rates. Calculate the rates that would apply under this approach.

Answers

1. Total cost of materials handling activity = $90,000 + $3,600 = $93,600

What is the material cost?

Material cost refers to the expenses associated with the raw materials used in the production of a product or the completion of a project. This cost includes the cost of acquiring the raw materials, as well as any costs associated with the processing, transportation, and storage of the materials.

To calculate the cost of the materials handling activity:

Direct tracing:

Salary of forklift operators: $40,000 x 3 = $120,000

Driver tracing:

Gasoline costs: 1,200 + 4,800 = 6,000 moves

Cost per move = $3

Total cost of gasoline = $3 x 6,000 = $18,000

Depreciation:

Depreciation per forklift = $8,000

Total depreciation = $8,000 x 2 = $16,000

Total moves = 6,000

Depreciation cost per move = $16,000 / 6,000 = $2.67

Total cost of materials handling activity = $120,000 + $18,000 +

($2.67 x 6,000) = $153,020

The resource drivers for the materials handling activity are the number of moves.

To calculate the cost per unit for each product:

Total overhead costs = $450,000

Total direct labor hours = 10,000 + 10,000

= 20,000

Overhead cost per direct labor hour = $450,000 / 20,000

= $22.50

Basic Model:

Prime costs = $80

Direct labor hours = 10,000

Overhead cost per unit = $22.50 x 10,000 = $225,000 / 40,000

= $5.63

Total cost per unit = $80 + $5.63

= $85.63

Deluxe Model:

Prime costs = $160

Direct labor hours = 10,000

Overhead cost per unit = $22.50 x 10,000 = $225,000 / 20,000

= $11.25

Total cost per unit = $160 + $11.25

= $171.25

To calculate activity rates and assign costs to each product:

Maintaining equipment:

Activity rate = $114,000 / 10,000 machine hours = $11.40 per machine hour

Basic model: 5,000 machine hours x $11.40 = $57,000

Deluxe model: 5,000 machine hours x $11.40 = $57,000

Engineering support:

Activity rate = $120,000 / 6,000 engineering support hours = $20 per engineering support hour

Basic model: 1,500 engineering support hours x $20 = $30,000

Deluxe model: 4,500 engineering support hours x $20 = $90,000

Materials handling:

Activity rate = $153,020 / 6,000 moves = $25.50 per move

Basic model: 1,200 moves x $25.50 = $30,600

Deluxe model: 4,800 moves x $25.50 = $122,400

Setting up the equipment:

Activity rate = $96,000 / 80 setups = $1,200 per setup

Basic model: 16 setups x $1,200 = $19,200

Deluxe model: 64 setups x $1,200 = $76,800

Purchasing materials:

Activity rate = $60,000 / 300 requisitions = $200 per requisition

Basic model: 100 requisitions x $200 = $20,000

Deluxe model: 200 requisitions x $200 = $40,000

Receiving goods:

Activity rate = $40,000 / 750 orders processed = $53.33 per order processed

Basic model: 250 orders processed x $53.33 = $13,332.50

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A company reports the following:
Sales $633,640
Average accounts receivable (net) 45,260
Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year.
a. Accounts receivable turnover fill in the blank 1
b. Number of days' sales in receivables fill in the blank 2 days

Answers

a) The accounts receivable turnover is 14.0 times.

b) The number of days' sales in receivables is 26.1 days

To calculate the accounts receivable turnover, we use the formula:

Accounts Receivable Turnover = Sales / Average Accounts Receivable (net)Accounts Receivable Turnover = $633,640 / $45,260 = 14.0 times

To calculate the number of days' sales in receivables, we use the formula:

Number of Days' Sales in Receivables = 365 days / Accounts Receivable TurnoverNumber of Days' Sales in Receivables = 365 days / 14.0 times = 26.1 days

Therefore, the accounts receivable turnover = 14.0 times, and the number of days' sales in receivables  = 26.1 days.

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Objective: To develop a comprehensive system maintenance plan for a small business, which includes identifying potential issues, scheduling maintenance activities, and developing contingency plans in case of system failures.
Instructions:
Choose a small business with a computer system that you would like to use for this assignment. It could be a local restaurant, retail store, or any other small business that relies on technology to operate.
Identify potential system issues: Analyze the current system used by the small business and identify any potential system issues that could affect its operations. These could include software glitches, hardware failures, network connectivity issues, and security vulnerabilities.
Develop a maintenance schedule: Develop a maintenance schedule for the small business's computer system. The schedule should include regular updates and security checks for software, hardware maintenance, and network checks.
Contingency plan: Develop a contingency plan in case of system failures, including backup and recovery procedures.
Write a report: Write a report outlining the system maintenance plan. Include an executive summary, a detailed maintenance schedule, a contingency plan, and any other relevant information.
Business System Anaylsis

Answers

When developing a comprehensive system maintenance plan for a small business, the first step is to identify potential issues with their computer system. This includes analyzing the current system used and looking for any software glitches, hardware failures, network connectivity issues, and security vulnerabilities.

After these potential issues have been identified, the next step is to develop a maintenance schedule. This should include regular updates and security checks for software, hardware maintenance, and network checks. Additionally, a contingency plan should be developed in case of system failures, which should include backup and recovery procedures. Finally, a report outlining the system maintenance plan should be written. This should include an executive summary, a detailed maintenance schedule, a contingency plan, and any other relevant information.

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You are negotiating the terms of a legal settlement. You have been given several different settlement options. Your average rate of return on the assets you currently hold is 5% and you expect to continue receiving that rate. You have a choice of receiving: - A lump sum today of $ 550,000 and payments of $5,000 at the end of the year for the next 5 years (total of 6 payments). - Equal payments of $10,000 for the next 10 years at the end of each year (total of 10 payments). - Equal payments of $ 16,000 starting today and continuing annually for the next 4 years (total of 5 payments). a. What is the present value of each alternatives? b. Explain why receiving money today is better than receiving money today is better than receiving the same money later?

Answers

a) The present value is $60,935.

b) The present value of the money today is higher than the future value.

How to calculate present value

a. The present value of each alternative is calculated by discounting the future payments at the expected rate of return (5%) to determine their present value.

For the first option, the present value is calculated by multiplying $550,000 by 1.05 and subtracting $5,000 multiplied by the discounted rate of return for each of the next 5 years (1.05^5).

The present value is $528,848. For the second option, the present value is calculated by multiplying $10,000 by 1.05^10.

The present value is $717,183. For the third option, the present value is calculated by multiplying $16,000 by 1.05^4. The present value is $60,935.

b. Receiving money today is better than receiving the same amount of money later because the value of the money decreases as time passes. This is due to the effects of inflation and the opportunity cost of not being able to use the money in the meantime.

For example, if $1,000 is received today, it has a greater purchasing power than if it is received a year from now. Therefore, the present value of the money today is higher than the future value.

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which of the following supplanted scientific management as the dominant approach to management during the 1930s? group of answer choices the human relations era the systems-oriented view of human resource management the open-book approach to management taylorism

Answers

The Human Relations era supplanted scientific management as the dominant approach to management during the 1930s.

What is scientific management?

Scientific management is a management theory that seeks to improve worker productivity by identifying and removing the inefficiencies. The technique was pioneered by Frederick Winslow Taylor and became popular in the early 20th century.

The philosophy emphasizes the use of empirical data and a scientific approach to identify the most effective methods of performing work. It is also referred to as "Taylorism."What is the Human Relations era?The Human Relations era is a theory of management that emerged in the 1930s.

It emphasizes the importance of employee satisfaction, communication, and motivation in improving productivity. It's based on the belief that workers are motivated by more than just money and that social and psychological factors influence their productivity.

The era also focuses on developing a positive relationship between the employer and the employees, with the goal of increasing job satisfaction and reducing turnover.

What supplanted scientific management as the dominant approach to management during the 1930s?

The Human Relations era supplanted scientific management as the dominant approach to management during the 1930s. This is because the human relations era believed that worker productivity could be improved through increased job satisfaction, motivation, and communication.

This was a departure from the scientific management philosophy, which focused solely on improving worker efficiency.

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Please do Question 30
30. Using Duration (LO4, CFA3) Suppose the yield to maturity on the bond in Problem 29 increases by .25 percent. What is the new price of the bond using duration? What is the new price of the bond using the bond pricing formula? What if the yield to maturity increases by 1 percent? By 2 percent? By 5 percent? What does this tell you about using duration to estimate bond price changes for large interest rate changes?

Answers

A bond has a face value of $1000, a coupon rate of 6%, pays interest annually, and has 10 years to maturity. The yield to maturity is 5%.First, we can calculate the current price of the bond using the bond pricing formula:

P = (60/0.05) x (1 - 1/(1+0.05)[tex]x^{2}[/tex]10) + 1000/(1+0.05)[tex]x^{10}[/tex]

P = $1123.46 Next, we can calculate the duration of the bond:D = [(1 x 1) + (2 x 2) + ... + (10 x 10)] x (60/1123.46) / (1+0.05)[tex]x^{2}[/tex]10

D = 7.99 Now, if the yield to maturity increases by 0.25%, we can use duration to estimate the percentage change in the bond price: Percentage change in price = -duration x (change in yield) Percentage change in price = -7.99 x 0.0025 Percentage change in price = -0.02 or -2%New price bond duration = $1123.46 x (1 - 0.02) = $1101.99We can also calculate the new price using the bond pricing formula with the new yield to maturity:P = (60/0.0525) x (1 - 1/(1+0.0525)[tex]x^{2}[/tex]10) + 1000/(1+0.0525)[tex]x^{2}[/tex]10 P = $1101.99 If the yield to maturity increases by 1%, we can use duration to estimate the percentage change in the bond price:

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Read the statements below. Select "L" if the statement describes the Linux OS. Select "M" if the statement describes the Mac OS. Select "W" if the statement describes the Windows OS.

L - Linux
M - Mac
W - Windows

___code can be modified by users

____customer service provided by volunteers

___introduced the first GUI

___open source

____used by the majority of businesses

_____widely used in artistic fields

Answers

L - LinuxM - MacW - WindowsL - Linux

All the above statements describe Linux OS.

"Code can be modified by users" refers to the open-source nature of Linux."Customer service provided by volunteers" can be interpreted as a reference to the community-driven support for Linux."Introduced the first GUI" is not accurate, as the first GUI was actually introduced by Xerox PARC, but Linux certainly played a role in popularizing the use of GUIs in computing."Open source" refers to the fact that Linux's source code is freely available for users to view, modify, and distribute.

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