You will have $____ in six years if you set aside $5,000 at 8%. (use the future value tables from chapter 5.)

Cheryl's Cookies has decided to create a charity that ships cookies to soldiers stationed in Syria. The soldiers could request t

Bess [88]

Answer: Option B : Accessible

Explanation: The segment might not be accessible because of the inability to deliver the cookies in war zones as this area cannot accommodate most delivery forms.

7 0

2 years ago

Net income for the year for Carrie, Inc. was $750,000, but the statement of cash flows reports that net cash provided by operati

dybincka [34]

Answer:

The difference might relate to depreciation, loss on sale of fixed assets, or change in working capital.

Explanation:

The net cash flow from operating activities is calculated after adding and deducting certain items and adjustments to net income to get operating cash flow.

First of all, the gains or losses from sale of fixed assets are adjusted, losses are added back and gains are deducted, to get income from operations.

All the non cash transactions that is unrealized gains or losses are eliminated.

Depreciation being non cash is added back.

All the changes in working capital is adjusted.

Increase in value of current assets are deducted, decrease in value of current assets are added, increase in current liability is added and decrease in current liabilities is deducted.

Thus, after all these adjustments the cash flow from operating activities is calculated.

In the given instance also, the difference might relate to depreciation, loss on sale of fixed assets, or change in working capital.

3 0

3 years ago

Assume that sales are predicted to be $4,000, the expected contribution margin is $1,720, and a net loss of $280 is anticipated.

Alexeev081 [22]

Answer:

e) $4,651

Explanation:

The break-even point is the level of activity that a company must operate to have its total cost equal to its total revenue. At this level of activity, the business makes a zero profit, as the total contribution is exactly the same as the total fixed cost.

It is important for the business to have an idea of the number of customers or units of product to sell inorder for it to cover its total fixed cost. This is the information the break-point analysis seeks to provide.

Working it out

Break-point in sales = Total General fixed cost/ Contribution margin ratio

Contribution margin ratio (CMR): Contribution is sales less variable costs. And the contribution margin ratio is the proportion of sales that is earned as contribution. The higher the better.

CMR = contribution/sales

Fixed cost = Contribution + net loss

We can now apply all these relationships to the question given:

Fixed cost = 1720 + 280

= 4,000

Contribution margin ratio = 1720/400 = 43%

Break-even sales ($) = 4000/0.43

= $4,651

3 0

3 years ago

Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types o

Nikolay [14]

Explanation:

The computation of the activity rate for each activity is shown below:

As we know that

Activity Rate = Expected rate ÷ Activity Driver

For Handling material = $650,000 ÷ 100,000 = $6.50 per part

For Inspecting product = $925,000 ÷ 1,500 parts = $616.67 per batch

For Processing purchase orders = $130,000 ÷ 700 = $185.72 per orders

Paying supplies = $200,000 ÷ 500 = 400 per invoices

Insuring the factory = $325,000 ÷ $40,000 = $8.125 per square foot

Designing packaging = $100,000 ÷ 2 models = 50,000 per models

5 0

3 years ago

Innovative Components is a manufacturer of computer parts. The company recently reported earnings of $2,014,802. In addition, In

sp2606 [1]

Answer:

C) $128.15

Explanation:

The computation of the intrinsic value of Innovative Components’ equity per share is shown below:

= Retained earnings ÷ number of shares issued × PE ratio

= $2,014,802 ÷ 402,500 shares × 24.6

= $128.15

We simply applied the above formula so that the intrinsic value of Innovative Components’ equity per share could come

and ignored the company PE ratio of 24.6

6 0

3 years ago