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Alisiya [41]
3 years ago
14

Wilson is currently operating at maximum capacity. The firm has a net income of $2,250, total assets of $24,600, long-term debt

of $9,800, accounts payable of $2,700, dividends of $900, and total equity of $12,100. All costs, assets, and current liabilities vary directly with sales. The tax rate and the dividend payout ratio will remain constant. How much additional debt is required if no new equity is raised and sales are projected to increase by 5 percent?
Business
1 answer:
Step2247 [10]3 years ago
6 0

Answer:

As a result in the increase in sales, the firm debt will decrease by 187.5 dollars

Explanation:

income of 2,250

dividends of 900

<em><u>payout ratio:</u></em> 900/2,250 = 0.4

income will increase by 5%

2,250 x 1.05 = 2,362.5‬

retained earnings break even:

2,362.5 x ( 1 - 0.4) = 1,417.5

increase in assets:

24,600 x 0.05 = 1,230

now we post this into the accounting equation:

Assets = liab+ equity

+1,230 = liab + 1,417.5

liab = -187.5

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Cost standards for one unit of product no. C77: Direct material 3 pounds at $2.50 per pound $ 7.50 Direct labor 5 hours at $7.50
PSYCHO15rus [73]

Answer:

Standard hours allowed= 39,000

Explanation:

Giving the following information:

Standard direct labor hours per unit= 5 hours

Actual results:

Units produced 7,800 units

<u>To calculate the standard hours allowed, we need to multiply the number of units produced for the unitary standard direct labor hours:</u>

Standard hours allowed= 7,800*5

Standard hours allowed= 39,000

3 0
2 years ago
Which of the following manufacturing costs is an indirect cost of producing a product? amissions for sales personnel b.memory ch
Akimi4 [234]

Answer:

The answers are the c) oil lubricants used for factory machinery and the d) hourly wage of an assembly worker

Explanation:

Indirect manufacturing costs are the costs that a factory must cover for the manufacture of a product, apart from materials and direct labor. They relate to the entire operation of the company and overcome the manufacturing process of a specific product. They are also found as general manufacturing costs.

In the case of response c), factory supplies are all those materials that are consumed within the factory but are not part of the raw materials. This includes oils, greases, lubricants, stationery, etc.

In the case of response d), indirect labor costs are those that make the operation of the company possible but cannot be assigned to a particular product. For example, the salary value of a manager who manages the operation of the entire company and not only in a product line.

8 0
3 years ago
Listed below are several terms and phrases associated with basic assumptions, broad accounting principles, and constraints. Pair
Fantom [35]

Answer:

Find it below

Explanation:

1. Expense Recognition - Record expenses in the preiod the related revenue is recognized

2. Periodicity - The life of an enterprise can be divided into artificial time periods.

3. Historical cost principle - The original transaction value or cost upon acquistion.

4. Materiality - Concerns the relative size of an item and its effect on decisions

5. Revenue recognition - Criteria usually satisfied for products at point of sale.

6. Going concern assumption - The entity will continue indefinitely

7. Monetary unit assumption - A common denominator is the dollar

8. Economic entity assumption - The enterprise is separate from its owners and other entities.

9. Full-disclosure principle - All information that could affect decisions should be reported

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6 0
3 years ago
Fixed vs variable cost preference. bates operates a kiosk at a local mall, selling duck calls for $30 each. the variable cost to
DochEvi [55]

Answer:

b) 2,000

Explanation:

sales price = $30

10% from each sale = $3

the amount of rent paid as a percentage of sales = $15,000 - $9,000 = $6,000

the indifference point in units = $6,000 / 10% revenue margin = $6,000 / $3 = 2,000 units

If Bates sells less than 2,000 units, then he should prefer option 2, but if he sells more than 2,000 units, then option 1 is better for him.

8 0
3 years ago
An appliance store sells 500 units of a particular type of dishwasher each year. The demand for this product is essentially cons
Elis [28]

Answer:

161 units

Explanation:

Economic order quantity = √[(2 x annual demand x orderign cost) / annual holding cost per unit]

annual demand = 500 units

ordering cost = $1,000

holding cost = $550 x 7% = $38.50

EOQ = √[(2 x 500 x $1,000) / $38.50] = 161.16 units ≈ 161 units

7 0
3 years ago
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