Answer:
The correct answer is 10.9 times.
Explanation:
According to the scenario, computation of the given data are as follow:-
Average account receivable = (Opening account receivable + Closing accounts receivable) ÷ 2
= ($92,000 + $26,000) ÷ 2
= $118,000 ÷ 2
= $59,000
We can calculate the account receivable turnover by using following formula :-
Accounts receivable turnover = Net sales ÷ Average Account receivable
= $643,100 ÷ $59,000
= 10.9 times
This is called the withholding tax or income tax. Every employee has to pay tax for every income made which is directly credited by the employer for the government. Withheld tax within the year is reflected in the Income tax return alongside with other income and assets where then you can apply for exceptions or discounts. If withheld tax is over the supposed tax then it will be refunded.
Answer:
The correct answer is letter "C": direct labor dollars, direct labor hours, and machine hours.
Explanation:
The allocation base is the method of assigning overhead costs to the source that causes it. More often, the allocation base is used for goods being produced in the manufacturing industry. In case the allocation base has properly been applied, changes in the allocation costs will not have a major impact on the costs of the source.
<em>Examples of allocation bases are assigning costs of Human Resources (HR) according to the number of employees in each administrative department or direct labor dollars, direct labor hours, and machine hours in production.</em>
Answer:
9.14%
Explanation:
The computation of the weighted average cost of capital is shown below:-
Debt = $500,000 × 1.02
= $0.51 m
Preferred = 40,000 × $34
= $1.36 m
Common = 104,000 × $20
= $2.08 m
Total = $0.51 m + $1.36 m + $2.08 m
= $3.95 m
So, Weighted average cost of capital = ($2.08 ÷ $3.95 m × 0.11) + ($1.36 m ÷ $3.95 m × 0.08) + (($0.51 m ÷ 3.95 m × 0.07 × (1 - 0.34))
= 0.057924 + 0.027544 + 0.005965
= 0.091433
or 9.14%
Therefore for computing the weighted average cost of capital we simply applied the above equation.
Answer:
19%
Overvalued
Explanation:
Computation for the return the firm should earn
Using this formula
The firm's required return=Risk-free rate+Beta×( Expected return-Risk-free rate)
Let plug in the formula
The firm's required return = 4% + 1.5 x (14% - 4%)
The firm's required return =4%+1.5×10%
The firm's required return =0.19*100
The firm's required return =19%
Based on the above calculation the firm's required return is 19% in which the manager believes a 16% return will be achieved which means that manager is saying the firm is OVERVALUED relative to their own estimate.
