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Darina [25.2K]
3 years ago
7

MC Qu. 160 Webster Corporations monthly...Webster Corporation's monthly projected general and administrative expenses include $5

,000 administrative salaries, $2,400 of other cash administrative expenses, $1,350 of depreciation expense on the administrative equipment, and 0.5% monthly interest on an outstanding bank loan of $10,000. Compute the total general and administrative expenses to be reported on the general and administrative expense budget per month.
Business
1 answer:
podryga [215]3 years ago
8 0

Answer:

The total general and administrative expenses to be reported on the general and administrative expense budget per month is $8,750

Explanation:

The computation of total general and administration expenses is shown below:

= Administrative salaries + other cash administrative expenses + depreciation expense on the administrative equipment

= $5,000 + $2,400 + $1,350

= $8,750 per month

The monthly interest is ignored because it is not a part general and administrative expenses. That's why it is not considered in the computation part.

Hence, the total general and administrative expenses to be reported on the general and administrative expense budget per month is $8,750

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Last year Ann Arbor Corp had $250,000 of assets (which equals total invested capital), $305,000 of sales, $20,000 of net income,
Firdavs [7]

Answer:

8.32%

Explanation:

The computation of  cost reduction improve the ROE is shown below:-

For computing the increase in ROE first we need to follow some steps which is here below:-

Debt = capital × Debt

= $250,000 × 37.5%

= $93,750

Equity = Assets - Debt

= $250,000 - $93,750

= $156,250

New ROE = New Net income ÷ Equity

= $33,000 ÷ $156,250

= 21.12%

Old ROE = Old Net income ÷ Equity

= $20,000 ÷ $156,250

= 12.8%

Increase in ROE = New ROE- Old ROE

= 21.12% - 12.8%

= 8.32%

8 0
3 years ago
Huck Finn is thinking about purchasing some stock in Mississippi Mining Company (MMC). Huck uses the price/earnings ratio techni
musickatia [10]

Answer:

Profit earning ratio of MMC = 10%

Explanation:

Given:

Current stock price = $100

Yearly profit on each share = $10

Profit earning ratio (P\E ratio) =?

Computation of profit earning ratio:

Profit earning ratio (P\E ratio) = Current stock price / Yearly profit on each share

Profit earning ratio (P\E ratio) = $100 / $10

Profit earning ratio (P\E ratio) = 10

It is computed that MMC's Profit earning ratio is nearer to the industry averages P/E ratio so, the investor can wait for some time to purchase this stock.

4 0
3 years ago
Exercise 6-18 Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio [LO6-1, LO6-3, LO6-5, LO6-6, LO6-7]Menlo Company
bonufazy [111]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Sales= $640,000 ($40)

Variable expenses= 448,000 (28)

Contribution margin= 192,000 ($12)

Fixed expenses= (145,200)

Net operating income=$46,800

1) To calculate the break-even point in units and dollars, we need to use the following formulas:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 145,200/(40-28)

Break-even point in units= 12,100 units

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 145,200/ (12/40)

Break-even point (dollars)= $484,000

<u>2) The break-even point is the number of units to sell to reach a net profit of cero. Therefore, the contribution margin must be equal to the fixed costs.</u>

Contribution margin= 145,200

3) profit= $75,600

Break-even point in units= (fixed costs + desired profit)/ contribution margin per unit

Break-even point in units= 220,800/12

Break-even point in units= 18,400 units

Sales= 18,400*40= 736,000

Total variable costs= 18,400*28= (515,200)

Contribution margin= 220,800

Fixed costs= 145,200

Net profit= 75,600

4) The margin of safety:

Margin of safety= (current sales level - break-even point)

Margin of safety= 640,000 - 484,000= $156,000

Margin of safety ratio= (current sales level - break-even point)/current sales level

Margin of safety ratio= 156,000/640,000

Margin of safety ratio= 0.244= 24.4%

5) Contribution margin ratio= 12/40= 0.3

Net increase= 96,000*0.3= $28,800

5 0
3 years ago
Management career skills include managing _____.
Svetllana [295]

Answer:

the correct answer is finances

3 0
3 years ago
The unrecognized net gain or loss balance must be amortized when it exceeds 10% of the larger of the: beginning accumulated bene
Schach [20]

Answer:

beginning projected benefit obligation or the market-related asset value

Explanation:

The balance of the Unrecognized Net Gain or Loss account subject to amortization only if it exceeds 10% of the larger of the beginning balances of the projected benefit obligation or the market-related value of the plan assets.

Amortization is simply the procedure or the process of retiring a debt or recovering a capital investment. This can be done via scheduled, systematic repayment of the principal or a program of periodic contributions to a sinking fund or debt retirement fund.

4 0
3 years ago
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