Answer:
d. 234,000 lbs. of A; e. 39,000 lbs. of B
Explanation:
For computing the number of pounds first we have to find out the production units which is shown below:
Production units = Sales units + ending inventory units - beginning inventory units
= 76,000 units + 10,500 units - 8,500 units
= 78,000 units
Now number of material pounds required is
Direct material A B
One unit requires 3 lbs 1 ÷ 2 lbs
Multiply 78000 unit requires 234,000 39,000
We simply multiplied the production units with the required unit of each material i.e A and B so that the accurate number of pounds could arrive
Answer:
B. Net income will be too high.
Explanation:
Revenue will be overstated instead of liabilities. overstatement in revenue will lead to the higher net income in current period. On the other hand liabilities are overstated. Entry to cash is accurately done and it will not effect due to this error. So the correct option is B. Net income will be too high.
Answer:
$105,000
Explanation:
The computation of interest capitalized in 2021 is shown below:-
Average cost of borrowing
= ($2,000,000 × 0.09 + $4,000,000 × 0.06) ÷ $6,000,000
= ($180,000 + $240,000) ÷ $6,000,000
= 7%
Average expenditure during year = $6,000,000 ÷ 2
= $3,000,000
Capitalized interest first eats up the specific construction loan
= 10% × $1,500,000
= $150,000
Therefore the next $1,500,000 is at the average borrowing rate = Construction loan × Average cost of borrowing
= $1,500,000 × 7%
= $105,000
Answer:
The beta of the other stock or stock B is 2.34
Explanation:
The beta of the portfolio is the weighted average of the individual stock betas that form up the portfolio. To calculate the beta for the portfolio, we use the following formula,
Portfolio beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N
Where,
- w represents the weight of each stock in the portfolio
As the portfolio is equally as risky as the market, the portfolio beta is assumed to be the same as that of the market and the beta is 1.
The beta is the measure of systematic risk and a risk free asset does not have risk and has a beta of 0.
To calculate the Beta of stock B in the portfolio, we simply put the available values in the formula for the portfolio beta,
1 = 1/3 * 0 + 1/3 * 0.66 + 1/3 * Beta of B
1 = 0 + 0.22 + 1/3 * Beta of B
1 - 0.22 = 1/3 * Beta of B
0.78 * 3 = 1 * Beta of B
2.34 = Beta of B
Thus, the beta of the other stock or stock B is 2.34
Answer: The quantity of money circulating in the economy, such as money market mutual funds and stocks.
Explanation: Money stock also known as the money supply of an economy is the amount of money in circulation in an economy at a specific time, mainly influenced by the central bank of a country. It consists of the value of total money available in an economy in its different forms such as: stocks, mutual funds, and physical cash.
