Which of the following is not an indicator of the business cycle?

In the month of June, a department had 20,000 units in beginning work in process that were 70% complete. During June, 80,000 uni

Mariana [72]

Answer: Option (c) is correct.

Explanation:

Given that,

Beginning work in process = 20,000 units and 70% completed

So, Units transferred = 20,000 × 30%

= 6,000

Direct transferred = 80,000 units

Ending work in process = 10,000 × 40%

= 4,000

Therefore,

Units were transferred out of the process in June:

= Beginning WIP transferred + Direct transferred + Ending work in process

= 6,000 + 80,000 + 4,000

= 90,000 units

3 0

2 years ago

Slaughter Industries just signed a sales contract with a new customer. What is this contract worth as of the end of year 4 if th

igor_vitrenko [27]

Answer:

$489,512.15

Explanation:

The formula for calculating future value:

FV = P (1 + r)^n

FV = Future value

P = Present value

R = interest rate

N = number of years

We are supposed to determine the present value

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = 84,000

Cash flow in year 2 = 113,000

Cash flow in year 3 = 125,000

Cash flow in year 4 = 130,000

I = 6%

PV = 387,739.47

387,739.47(1.06)^4 = $489,512.15

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

8 0

2 years ago

A corporation has 50,000 shares of $28 par stock outstanding that has a current market value of $150 per share. If the corporati

Dahasolnce [82]

Answer:

c. $37.50

Explanation:

The computation of the market value of the stock split is shown below:

= Current market value ÷ four ÷ one

= $150 per share ÷ 4 ÷ 1

= $150 per share ÷ 4

= $37.50

Simply we divide the current market value by the four for one stock split ratio so that the correct market value can come. The four for one reflect the ratio criteria which is mentioned in the question

All other information which is given is not relevant. Hence, ignored it

3 0

2 years ago

Read 2 more answers

Which of the following statements is CORRECT?a. If the cost of capital declines, this lowers a project's NPV.b. The NPV method i

AleksAgata [21]

Answer:

Both C and D statements are correct

Explanation:

3 0

3 years ago

Which of the following statements about Treasury bonds is the most accurate? Treasury bonds are completely riskless. Treasury bo

WARRIOR [948]

Answer: 1. Treasury bonds are not completely riskless, since their prices will decline when interest rates rise.

2. Walmart

3. Corporate bonds

Explanation:

1. Indeed even though Treasury bonds have a very low risk rating, they are not completely risk-less. They have a very low risk rating because they will always be honoured (US T - bonds that is) and so that eliminates the default risk. However, they are still exposed to maturity risk as well as inflation risk for the most part. This means that as interest rates rise therefore, their prices drop making them just a little but risky.

2. Walmart issued the bonds making them the issuer. The rest of the names are Underwriters.

3. Since the bonds were issued by a Corporation being Walmart, the bonds are Corporate Bonds.

8 0

2 years ago