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1 year ago

How much total estimated warranty expense does arctica report for the current year?

2 answers:

5 0

The percentage of estimated warranty expense is 4% of Lynx, 7% of Puma, and Jag estimated warranty expense percentage is 6%.

A company must record estimated warranty expense in the period of the sale. Thus, that expected cost is recorded as a liability on its balance sheet and as an expense on its income statement.

The warranty expense is an expense related to the repair, replacement, or compensation to a user if any product turns out to be a defective piece.

Hence, a vendor or manufacturer is committed to repair or replace a sold product during a certain time period if it breaks or does not function properly accordingly to the terms of the warranty.

To learn more about estimated warranty expense here:

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Sedaia [141]1 year ago

4 0

Answer:

its 13700.

I believe your supposed to multiply the sales by the percentage to get the answer

Explanation:

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. Terry purchases an annuity with payments made at the beginning of each month for 36 payments. The monthly payments are a const

lara31 [8.8K]

Answer:

The present value of the annuity is $ 825.02

Explanation:

The present value of the annuity is the today's worth of the thirty annuity payments.

Each of the annuity payment is multiplied by its discount factor,for instance the discount factor for the first payment is computed thus

=$15*(1/(1+6%/12)^1=$14.93

The 6% interest rate is divided by 12 months to show a monthly rate of return find attached.

Download xlsx

4 0

3 years ago

How may hedging increase value of a company through: Reducing agency costs; Reducing costs of financial distress; Tax optimizati

yawa3891 [41]

Answer:

Hedging increases value of a company through:

Reducing costs of financial distress.

Explanation:

Hedging is a risk reduction and management strategy, which a company employs to offset or reduce its losses in investments by assuming opposite positions in some related assets. The reduction in risks through hedging results in some reduction in the profitability of the investments, based on the basic understanding of risk-return trade-off. Hedging strategies are done with derivatives, such as options and futures contracts.

3 0

3 years ago

Consider 2 scenarios: Boom Economy and Normal Economy. The Boom economy has 30% chance of happening, while Normal economy has 70

natali 33 [55]

Answer:

A) Expected Return of Stock ABC = Probability of Boom * Return of ABC in boom+Probability of Normal * Return of ABC in norma

ER = 30% * 25% + 70% * 4% = 10.30%

Expected Return of Stock XYZ = Probability of Boom * Return of XYZ in boom+Probability of Normal*Return of XYZ in norma

ER = 30% * 10% + 70% * 6.5% = 7.55%

Variance of Stock ABC = 30% * (25%-10.30%)^2 + 70% * (4%-10.30%)^2 = 0.9261%

Variance of Stock XYZ = 30% * (10%-7.55%)^2 + 70% * (6.5%-7.55%)^2 = 0.02573%

Standard Deviation of ABC =0.9261%^0.5 = 9.62%

Standard Deviation of XYZ =0.02573%^0.5 = 1.60%

B) Coefficient of Variation of ABC=Standard Deviation of ABC/Expected Return of ABC =9.62%/10.30%=0.93

Coefficient of Variation of XYZ=Standard Deviation of XYZ/Expected Return of XYZ =1.60%/7.55%=0.21

Stock with less Coefficient of variation to be chosen as lower Coefficient of variation show lower risk in relation to the return.

Hence stock XYZ is best for investment.

C) Expected Return of Market =30% *12% + 70% * 5% = 7.1%

Variance of Market =30% * (12% - 7.1%)^2 + 70% * (5%-7.1%)^2 = 0.1029%

Covariance of Stock ABC and Market = 30% * (12% - 7.1%) * (25% - 10.30%) + 70%*(5% - 7.1%) * (4% - 10.30% )= 0.0030870

Beta of ABC = Covariance of Stock ABC and Market / Variance of Market

Beta ABC = (0.0030870 / 0.1029%) = 3.00

Covariance of Stock XYZ and Market =30% * ( 12% - 7.1%) * (10% - 7.55%) + 70% * (5% - 7.1%) * (6.50% - 7.55%) = 0.000515

Beta of Stock XYZ = Covariance of Stock XYZ and Market /

Variance of MarkeT

Beta XYZ = (0.000515 / 0.1029%) = 0.5

8 0

4 years ago

Oscar’s Kennels spent $130,000 to refurbish its current facility. The firm borrowed 70 percent of the refurbishment cost at 4.5

andrew-mc [135]

Answer:

$1696.51

Explanation:

70% of $130 000 = $91 000; number of payments = 12 * 5 years = 60 months ; 4.5% is converted to 4.5/1200 to accommodate the monthly repayments being calculated.

Loan monthly repayment

= principal [ interest (1+ interest)^ number of payments] / [(1+interest)^number of payments - 1]

$91 000 [(4.5/1200* (1+ 4.5/1200)^ 60)] / [((1+4.5/1200)^60) - 1]

= 1696.514751

= 1696.51

6 0

3 years ago

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturin

zlopas [31]

1.Plant wide predetermined rate= $\frac{Total Fixed Manufacturing Overheads}{Total Estimated Hours}$

Plant Wide Predetermined rate= $\frac{29800}{4000}$

Plant Wise Predetermined Rate=$7.45

2. Manufacturing Overheads Applied to P and Q

P Q

Variable Manufacturing Overheads

Molding 7540 5200

Fabrication 6120 7140

Fixed Manufacturing Overheads

Molding 21605 14900

Fabrication 13410 15645

Total 48675 42885

3. Total Manufacturing Cost assigned to Job P is $48675.

4. If P has 20 Units Unit Product Cost will be as below:

Direct Materials 25000

Direct Labour 30600

Total Manufacturing overheads assigned 48675

total Product Cost 104275

Cost per unit $5213.75

5. Total Manufacturing Cost Assigned to Job Q is $42885.

6. If Q has 30 units uint product cost will be as below:

Direct Materials 14000

Direct Labour 12300

Total Manufacturing Overheads 42885

Total Cost 69185

Cost per Unit $2306.16

7. Selling Price for P

Total Cost of P...............................................................................$104275

Mark Up...........................................................................................$38940

Selling Price......................................................................................$ 143215

Cost per unit.....................................................................................$7160.75

Selling Price for Q

Total Cost of Q ..............................................................................69185

Markup ......................................................................................... 34308

Selling Price ................................................................................103493

Cost per unit...................................................................................$3449.76

8. Cost of Goods Sold for March...................................................$173460

8 0

4 years ago

Read 2 more answers