Because investors are often unwilling to buy stock in a company without any

EB2.

madreJ [45]

Answer:

The question is incomplete; the complete question is given below:

$

Direct materials 15,000.00

Direct labor 25,000.00

Factory depreciation expense 45,000.00

Factory utilities expense 2,000.00

Payroll staff's salary 15,000.00

Prime cost= $40,000, Conversion cost= $72,000

Explanation:

Prime cost: It is the summation of all direct costs. Direct costs are costs that are incurred directly for a particular product, and therefore can be traced to it.

Examples of direct costs include; direct material costs, direct labour cost and direct expense

Direct materials cost: the costs of all materials used directly to manufacture a product. For example, cocoa powder, vanilla used in making chocolate. Every other materials costs are indirect material costs

Direct labor cost: the cost of the labor hours of workers actively involved in the production of a product. For example, the cost of the total hours paid to workers for packing the chocolates into cartons. Every other labor costs are indirect labor costs

Prime cost = Direct material cost+ Direct labour cost + Direct expense

Prime cost = $15,000 + $25,000= $40,000

Conversion cost = The sum of direct labour costs and manufacturing overheads

Conversion cost= $25,000 + $45,000 + $2000= $72,000

Note that payroll staff cost was excluded because payroll function is an administrative activitiy not manufacturing.

6 0

3 years ago

A two-year bond with par value $1,000 making annual coupon payments of $99 is priced at $1,000.

iVinArrow [24]

Answer:

(a) 9.9%

(b) 10.09%

The further explanation is given below.

Explanation:

The given values are:

Coupon payment

= $99

Price

= $1,000

(a)

The Yield to maturity (YTM) will be:

= $\frac{C+\frac{F-P}{n} }{\frac{F+P}{2} }$

where,

C = Coupon payment

P = Price

n = years to maturity

F = Face value

On putting the estimated values is the above formula, we get

⇒ $99+\frac{0}{1000}$

⇒ $.099$

⇒ $9.9$ %

(b)

Although the 1st year coupon was indeed reinvested outside an interest rate of r%, cumulative money raised will indeed be made at the end of 2nd year.

= $[99\times (1 + r)] + 1,099$

Came to the realization compound YTM is therefore a function of r, as is shown throughout the table below:

Rate (r) Total proceeds Realized YTM ( $(\frac{proceeds}{1000} )^{.5} - 1$ )

7.9% 1205.8 9.8%

9.9% 1207.8 9.9%

11.9% 1209.8 9.99%

Now,

Overall proceeds realized YTM:

= $\frac{proceeds}{1000} -18 \ percent \ 1,\frac{2081208}{1000} - 1$

= $0.0991$

= $9.91 \ percent \ 10 \ percent \ 1,\frac{2101210}{1000}- 1$

= $0.1000$

= $10.00 \ percent \ 12 \ percent \ 1,\frac{2121212}{1000}-1$

= $0.1009$

= $10.09$ %

6 0

3 years ago

An anticipated purchase of equipment for $1,000,000, with a useful life of eight years and no residual value, is expected to yie

exis [7]

Answer:

3 years

The average rate of return method includes the entire amount of the income earned over the life of the proposal.

a. rate of return on investments

b. may be reconsidered if funds later become available.

Explanation:

Cash payback period measures how long it takes to recover the amount invested in a project from the cumulative cash flow.

Amount invested = $-1,000,000

Amount recovered in year 1 = $-1,000,000 + $400,000 = $-600,000

Amount recovered in year 2 = $-600,000 + 320,00 = $-280,000

Amount recovered in year 3 = $-280,000 + 280,000 = 0

The amount invested is recovered In the 3 year

Average accounting rate = average net income/ average book value

Net present value is the present value of after tax cash flows from an investment less the amount invested. The interest rate used is the rate of return on investments.

The hurdle rate is the least acceptable rate that a project can have for it to be acceptable.

I hope my answer helps you

8 0

3 years ago

Why might a company that sells advanced lighting systems include a technical specialist on its sales teams?done

erik [133]

I think the answer is C

7 0

2 years ago

The following is the adjusted trial balance of Wilson Trucking Company.

Troyanec [42]

Answer:

PART 1: Wilson Trucking Company reported Net Income of $15,854 for the year ended December 31, 2017.

PART 2: As per the statement of changes in equity, K. Wilson Capital Account Balance as at December 31, 2017 is $190,124

* Please note that figures in brackets represent negative values.

Explanation:

PART 1

Wilson Trucking Company

Income Statement for the year ended December 31, 2017

Revenue

Trucking Fees $115,500

Less Expenses:

Depreciation expense of Trucks $(26,043)

Salaries expense $(54,170)

Office supplies expense $(9,500)

Repairs expense -Trucks $(9,933)

Net Income $15,854

PART 2

Wilson Trucking Company

Statement of changes in Equity for the year ended December 31, 2017

K. Wilson Capital Account Balance as at December 31, 2016 $193,270

Add: Net Income for the year $15,854

Less: K. Wilson withdrawals during the year $(19,000)

K. Wilson Capital Account Balance as at December 31, 2017 $190,124

7 0

3 years ago