9. When paraphrasing, which of the following must a student do:

1. The purpose of preparing a direct materials budget is to ________. a. allocate the cost of raw materials to production depart

worty [1.4K]

Answer:

1. Option c is correct option.

2. Option b is correct option.

Explanation:

Part 1. Direct material budget is prepared for estimating the quantity of raw materials to be purchased. Following is the formula used for the computation of direct material budget:

D. Raw Material required to be purchased = Raw Material required for production + Desired closing Raw material for the last year - Opening Raw Material

Part 2. The desired ending raw material inventory for the last period.

And this is evident from the formula in the part 1 which tells that the desired closing raw material is that of the last year.

6 0

3 years ago

Park Co is considering an investment that requires immediate payment of $28.245 and provides expected cash inflows of 59,300 ann

statuscvo [17]

Answer:

The net present value of this investment is $3,256.06.

Explanation:

Note: There two errors in the figures provided in this question. They are they therefore fixed before answering this question as follows:

Park Co is considering an investment that requires immediate payment of $28,245 and provides expected cash inflows of $9,300 annually for four years. Assume Park Co requires a 7% return on its investments.

What is the net present value of this investment?

The explanation of the answer is now provided as follows:

The present value (PV) of the annual expected cash inflows of $9,300 can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV of the annual expected cash inflows = Annual expected cash inflows * ((1 - (1 / (1 + rate of returns))^number of years) / rate of returns) = $9,300 * ((1 - (1 / (1 + 0.07))^4) / 0.07) = $31,501.06

Net present value = PV of the annual expected cash inflows – Required immediate payment for the investment = $31,501.06 - $28,245 = $3,256.06

Therefore, the net present value of this investment is $3,256.06.

6 0

3 years ago

Suppose two factors are identified for the U.S. economy: the growth rate of industrial production, IP, and the inflation rate, I

mash [69]

Answer:

14.4%

Explanation:

Calculation for what will be your expected rate of return on the stock.

Expected rate of return on the stock=12% + 1(5%-4%) + .7(8%-6%)

Expected rate of return on the stock=12%+1(1%)+.7(2%)

Expected rate of return on the stock=12%+1%+1.4%

Expected rate of return on the stock=14.4%

Therefore your expected rate of return on the stock is 14.4%

7 0

3 years ago

On December 10, 2020, Jennings, Inc. paid out total dividends of $350,000 (this was the only dividend payment made during the ye

Hoochie [10]

Answer:

$723,000

Explanation:

Calculation to determine what was Jennings reported net income in 2020

Using this formula

2020 Net income=(2019 Retained earnings-2020 Retained earnings)+ Total Dividend

Let Plug in the formula

2020 Net income=($2,681,000-$2,308,000)+$350,000

2020 Net income=$373,000+$350,000

2020 Net income=$723,000

Therefore Jennings reported net income in 2020 is $723,000

3 0

3 years ago

Cape Corp. will pay a dividend of $3.60 next year. The company has stated that it will maintain a constant growth rate of 5 perc

victus00 [196]

Answer:

$30

Explanation:

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

$3.6 / (0.17 - 0.05)

$3.60 / 0.12 = $30

6 0

3 years ago