When might be the best time to start saving for retirement?

In Mordica Company, total materials costs are $35,500, and total conversion costs are $54,000. Equivalent units of production ar

MrMuchimi

Explanation:

The computation is shown below:

Material Cost per unit = Total Material Cost ÷ Equivalent units of production

= $35,500 ÷ 10,000 units

= $3.55

Conversion Cost per unit = Total conversion cost ÷ Equivalent units of production

= $54,000 ÷ 12,000 units

= $4.5

Total Manufacturing cost per unit = Material cost per unit + conversion cost per unit

= 3.55 + 4.5

= $8.05

6 0

3 years ago

Prepare a classified year-end balance sheet, (Note: A $9,000 installment on the long-term note payable is due within one year.)

Katarina [22]

Answer:

Blessinger Co.

Classified Balance Sheet as at December 31, 2017

ASSETS

Non- Current Assets

Office equipment $38,000

Accumulated depreciation-Equipment ($3,200) $34,800

Building $288,000

Accumulated depreciation-Building ($42,000) $246,000

Land $700,000

Total Non Current Assets $980,800

Current Assets

Accounts receivable $27,000

Prepaid Prepaid $15,000

Insurance $9,000

Office supplies $3,300

Cash $112,000

Total Current Assets $166,300

TOTAL ASSETS $1,157,100

EQUITY AND LIABILITIES

LIABILITIES

Current Liabilities

Accounts payable $25,800

Salaries payable $14,500

Interest payable $2,500

Note Payable $9,000

Total Current Liabilities $51,800

Non-Current Liabilities

Long-term note payable ($72,000 - $9,000) $63,000

Total Non- Current Liabilities $63,000

TOTAL LIABILITIES $114,800

EQUITY

P.Blessinger, Capital $910,000

P. Blessinger, Withdrawals ($200,500)

Profit for the Year $332,800

TOTAL EQUITY $1,042,300

TOTAL EQUITY AND LIABILITIES $1,157,100

Explanation:

A Balance Sheet shows the Balance of Assets, Liabilities and Equity as at the Reporting date.

Calculation of Profit for the year :

$ $

Service fees earned 430,800

Less Expenses

Salaries expense 90,000

Insurance expense 5,200

Rent expense 5,000

Depreciation expense-Equipment 800

Depreciation expense-Building 7,000 (108,000)

Profit for the year 332,800

7 0

3 years ago

Desert Rose, Inc., a prominent consumer products firm, is debating whetherto convert its all-equity capital structure to one tha

Rina8888 [55]

Answer:

A. $450

B. $480

C. $540

D. The choice of capitl structure is irrelevant because the amount of $480 is the payoff amount based on the proposed capital structure with 30% debt, which indicate that investors cannot make use of home leverage to help create the capital structure as well as the payoffs they like.

Explanation:

a) Calculation to determine her cash flow under the current capital structure

First step is to calculate the earnings per share

EPS = $29,000 / 6,500 shares

EPS = $4.5

Now let calculate the cash flow under the current capital structure

Cash flow = $4.5*(100 shares)

Cash flow = $450

Therefore her cash flow under the current capital structure will be $450

b) Calculation to determine What will be the cash flow be under the proposed capital structure of the firm

First step is to calculate the earnings per share

First step is to calculate the MV of the firm

MV of the firm= $45(6,500)

MV of the firm= $292,500

Second step is to calculate the Debt

Debt = .30 x ($292,500)

Debt= $87,750

Third step is to calculate the Interest

Interest =8% x $87,750

Interest = $7,020

Fourth step is to calculate the repurchase shares

Repurchase shares =$87,750 / $45

Repurchase shares= 1,950

Fifth step is to calculate the Shrout new

Shrout new =6,500 - 1,950

Shrout new=4,550

Therefore, under the new capital structure,

EPS = (EBIT - Interest) / shares outstanding new

EPS = ($29,000 -$7,020) / 4,550shares

EPS =$21,980/4,550 shares

EPS =4.8

The shareholder will receive = $4.8*(100 shares) = $480

Therefore What will be the cash flow be under the proposed capital structure of the firm is $480

c) Calculation to Show how she could unlever her shares of stock to re-create the original structure.

Now she owns a total of 200 shares

Her payoff =[ (100 shares+100 shares) x $4.5 ]- [8% x $(100 shares x $45)]

Her payoff =(200shares×$4.5)-(8%×$4,500)

Her payoff =$900-$360

Her payoff= $540

Therefore Based on the above Calculation Allison did not successfully replicate the payoffs (b) under the proposed capital structure

d).Based on the above Calculation the choice of capitl structure is irrelevant because the amount of $480 is the payoff amount based on the proposed capital structure with 30% debt, which indicate that investors cannot make use of home leverage to help create the capital structure as well as the payoffs they like.

7 0

3 years ago

Eduardo is starting a floral shop and owns a 10-year-old delivery van. He borrows $50,000 from First National Bank, which takes

mylen [45]

Answer: After acquired property

Explanation: The concept of after acquired property refers to personal belongings or properties purchased by an individual who has secured a loan such as mortgage and penned a security agreement that secures the debt with all of his properties.

The after acquired property is manifested in the context above, Eduardo must have penned a security agreement nn other to secure the $50,000 loan from the National Bank, and therefore his real and personal properties such as his 10 year old van, including properties purchased after penning the security agreement such as the Just purchased greenhouse automatically becomes a collateral for his debt.

5 0

3 years ago

Read 2 more answers

Compare and contrast a motion to dismiss with other pretrial motions. Identify their chief differences.

shutvik [7]

Answer: Explanation:

Motion to dismiss is to want to dismiss the whole case or charges all together. This is done when there is not enough evidence or the alleged facts do not amount to crime.

Motion to strike is to dismiss a certain something from the case.

Motion to make more definite and certain is to clarify the basis of the plaintiff's cause.

Motion to Suppress – an attempt to keep certain statements or evidence from being introduced as evidence. For example, if police conducted a search without probable cause (in violation of the Fourth Amendment), it may be possible to suppress the evidence found as a result of that search.

Motion for Change of Venue – may be made for various reasons including pre-trial publicity. If the local news has covered the case a great deal, it may be necessary to move the trial to another venue to protect the defendant’s right to an impartial jury.

5 0

3 years ago