Answer:
a) 3,000
b) 396,850
c) 2,976.38
d) 393,873.62
Explanation:
a) principal x rate x time = interest
400,000 x 0.09 x 1/12 = 3,000
b) 6,150 - 3,000 = 3,150 principal payment
400,000 - 3,150 = 396,850
c) principal (carrying value) x rate x time = interest
396,850 x 0.09 x 1/12 = 2,976.38
d) 396,850 - 2,976.38 = 393,873.62
Answer: $1,017,000
Explanation:
In calculating product costs we take the following, Direct materials and direct labor, Other variable manufacturing costs, Depreciation of factory building and manufacturing equipment and Other fixed manufacturing costs.
We add all of those with the result being the Product cost.
Calculating therefore would give us,
= 770,000 + 135,000 + 87,000 + 25,000
= $1,017,000
$1,017,000 is the amount that should be considered product costs for external reporting purposes.
If you need any clarification do comment.
Answer:
1. 45.5%
2. 13.3%
3. 7.2%
Explanation:
The formulas and calculations are shown below:
1. Gross margin = (Sales - cost of sales) ÷ (sales) × 100
= ($10.1 million - $5.5 million) ÷ ($10.1 million) × 100
= ($4.6 million) ÷ ($10.1 million) × 100
= 45.5%
Gross profit = Sales - cost of sales
2. Operating margin = (Gross profit - selling, general and administrative expenses - research and development - annual depreciation charges) ÷ (sales) × 100
= ($4.6 million - $460,000 or $0.46 million - $1.4 million - $1.4 million) ÷ ($10.1 million) × 100
= ($1.34 million) ÷ ($10.1 million) × 100
= 13.3%
Operating income = Gross profit - selling, general and administrative expenses - research and development - annual depreciation charges
3. Net profit margin = (Operating income - taxes) ÷ (sales) × 100
= ($1.34 million - $0.6097 million) ÷ ($10.1 million) × 100
= ($0.7303 million) ÷ ($10.1 million) × 100
= 7.2%
The income tax expense = Operating income × income tax rate
= $1.34 million × 45.5%
= $0.6097 million
Answer:
$399,000
Explanation:
We need to understand that deductible is a portion of a loss that is covered in the policy but must be paid by the insurance purchaser, these terms stated in the insurance contract.
Here, the actual value of the business personal property at the time of this report was $400,000. (Only the actual value is covered)
Deductible is = $1,000
Acme's insurer will pay an amount of $399,000 ($400,000 - $1,000) for the described loss.
Answer:
The risk premium on factor 2 = 9.26%.
Explanation:
Let us denote the risk premium of factor 2 as x
Below is the formula we can use to calculate the risk premium of factor 2.
Expected return on stock = (Beta (factor 1)* expected return of 1) +(beta of 2x * risk free reate)
17.6% = (1.45*3.2%) + 0.86x+5%
17.6 = 4.64 + 0.86x+5%
17.6 - 4.64 - 5= 0.86x
7.96 = 0.86x
x = 7.96/0.86 =9.2558
The risk premium on factor 2 = 9.26%.
