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3 years ago

Look at the scenario Linear Production Possibility Frontier. What is the maximum number of pairs of socks Largetown can produce?

Business

1 answer:

LenaWriter [7]3 years ago

8 0

Answer:

A) 40

Explanation:

The chart is not very clear, but the information included is:

it takes four hours to produce one shirt
it takes two hours to produce one pair of socks

If the total number of labor hours is 80, then the maximum number of socks produced will = 80 hours / 2 hours per pair of socks = 40 pairs of socks

The total number of shirts produced would be 20.

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Based on the Information that follows, prepare the cost of goods sold section of a multiple-step income statement.

Shtirlitz [24]

Answer:

Cost of goods sold = $105,060

Explanation:

a) Data and Calculations:

Cost of goods sold section of the multi-step income statement:

Merchandise Inventory, January 1, 20-- $37,000

Purchases 102,000

Purchases Returns and Allowances (4,200)

Purchases Discounts (2,040)

Freight-In 800

Merchandise Inventory, December 31, 20--(28,500)

Cost of goods sold $105,060

b) The cost of goods sold comprises the beginning inventory, purchases and freight-in costs incurred during the period, less purchases returns and discounts, and the ending inventory. It represents the cost incurred directly for the goods sold. This means that indirect costs are not included in the cost of goods sold. Such costs are usually deducted as period costs before arriving at the net income.

7 0

3 years ago

Ruth wants to calculate the present value of a sum of money that she will receive after the demise of her grandparents. to calcu

MatroZZZ [7]

To calculate the present value. she should use the DISCOUNTING METHOD.
The discounting method is a valuation technique that is used to calculate the value of an investment opportunity. The method uses cash flow projections that does not take the future into consideration and discount them to get the present value estimates.

7 0

3 years ago

While traditional and charismatic styles of leadership focus on ___________________________________, transformational leadership

tia_tia [17]

Answer:

personality vision, hard work personalities

Explanation:

Charismatic leaders are those that make use of their language style to charm and influence others. They often have the ability to communicate with people at a deeper level of understanding. While the transformational leadership style focuses on internal motivation and positive development of followers.

6 0

3 years ago

The market value of Fords' equity, preferred stock, and debt are $ 7 billion, $ 2 billion, and $ 13 billion, respectively.

Alisiya [41]

Answer: 9.48%

Explanation:

Given Data

Debts ;

$7 billion

$2 billion

$13 billion

Beta of Fords stock = Beta = 1.50

Market risk premium = Rp = 8.0%

Risk free rate of interest = Rf = 4.0%

Equity rate = 1.7

Market risk rate = 0.8

Risk free rate = 0.03

Therefore;

Cost of Equity ( Re ) = Risk free rate + equity rate × market risk premium

= 0.03 + (1.7 × 0.8)

= 0.166

Preferred Stock Cost ( PSC)= Dividend ÷ stock price

= 4 ÷ 30

= 0.1333

Total debt = 13 + 6 + 2 = 21 billion

D% = 13 billion ÷ 21 billion

= 0.619

E% = 6 billion ÷ 21 billion

= 0.286

P% = 2 billion ÷ 21 billion

= 0.095

RD = debt capital at 8% maturity rate

Tc= 30%

Rwac =(w/ preferred stock)

= Re × E% + PSC × P% + Rd ( 1- Tc) D%

Rwac = (0.166)(0.286) + (0.1333)(0.095) + (0.08)(1- 0.3)*(0.619)

= 0.094803 * 100

= 9.48%

At 30% tax rate Ford weighted average cost is 9.48%

4 0

3 years ago

A company must repay the bank a single payment of $20,000 cash in 3 years for a loan it entered into. The loan is at 8% interest

Yuki888 [10]

Answer:

Present Value of the loan = $19999.36 rounded off to $20000

Explanation:

The present value of loan will comprise of the present value of the principal amount of loan plus the present value of the interest that the loan will charge for the 3 year time period for which it is outstanding. As the interest payments are fixed and occur after equal intervals of time, they are considered an annuity.

To calculate the present value of the loan, we must discount the interest payments using the present value factor of annuity given in the question as 2.5771 and we must discount the principal to present value using the present value factor given in question as 0.7938.

We will first calculate the annual interest payment on loan.

Annual Interest payment = 20000 * 0.08 = 1600

Present value of the Interest payment - annuity = 1600 * 2.5771

Present value of the Interest payment - annuity = $4123.36

Present value of the Principal loan = 20000 * 0.7938

Present value of the Principal loan = $15876

Present Value of the loan = 15876 + 4123.36

Present Value of the loan = $19999.36 rounded off to $20000

7 0

3 years ago