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3 years ago

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If a firm adheres strictly to the residual dividend policy, and if its optimal capital budget requires the use of all earnings f

or a given year (along with new debt according to the optimal debt/assets ratio), then the firm should pay

1 answer:

sp2606 [1]3 years ago

8 0

Dats hard huh? I think soooo

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upino Products provides the foundational data for this problem given that the unit product costs at a normal level of 5,000 unit

serg [7]

Answer:

Available for advertizing campaing 480,000

Explanation:

First we calculate the current operating income:

sales price less all uniit operating cost

90 - 35 - 12 - 8 - 5 - 15 - 8 = 7

$7 x 60,000 units = $420,000 operating income

Now we calculate the new contribution margin and operating income

materials + labor + variable overhead + variable sale = total variable

35 + 12 + 8 + 15 = 70

new contribution margin per unit

98 - 70 = 28

sales 60,000 units less 10% = 54,000 units

<em>contribution margin </em>

28 x 54,000 = 1,512,000

Fixed overhead 300,000

Fixed selling and adming <u> 480,000 </u>

operating income 732,000

<u>Potential contribution from additional sales:</u>

6,000 units x $28 = 168,000

<u>Less: before raising income</u> (420,000)

Available for advertizing campaing 480,000

3 0

3 years ago

Read 2 more answers

The Supply/Demand equilibrium price is __________ with an equilibrium quantity of _________. PRICE Column 1 Quantity Column 2 Qu

ArbitrLikvidat [17]

Answer:

a) price of $7 and quantity of 50 units

Explanation:

According to what I'm understanding of the table you got the following:

$\left[\begin{array}{ccc}Price&Supply&Demand\\5&11&36\\6&36&68\\7&50&50\\7&73&37\\...&....&...\end{array}\right]$

The equilibrium will be when both forces meet in this case, it is clear that it is happening at a price equal to $7 which generates a supply of 50 units and a demand for 50 units. Both have the same value so it is equilibrium

3 0

3 years ago

If $ 9 comma 000 is invested in a certain business at the start of the year, the investor will receive $ 2 comma 700 at the end

laiz [17]

Answer:

NPV= 1,036.16

Explanation:

Giving the following information:

Initial investment= $9,000

Cash flows= $2,700 at the end of each of the next four years.

Interest rate= 3%

To calculate the net present value (NPV), we need to use the following formula:

NPV= -Io + ∑[Cf/(1+i)^n]

Cf1= 2,700/1.03= 2,621.36

Cf2= 2,700/1.03^2= 2,545

Cf3= 2,700/1.03^3= 2,470.88

Cf4= 2,700/1.03^4= 2,398.92

Total= 10,036.16

NPV= -9,000 + 10,036.16

NPV= 1,036.16

3 0

3 years ago

TB MC Qu. 04-126 Juniper Company uses a perpetual inventory... Juniper Company uses a perpetual inventory system and the gross m

Sholpan [36]

Answer:

The journal entry to record the purchase on August 7 is:

Debit Merchandise $9,750

Credit Accounts Payable $9,750

Explanation:

The terms of 1/10, n/30 means 1% discount for the payment within 10 days and the full amount to be paid within 30 days.

The company purchased $9,750 of merchandise on August 7, returned $1,500 worth of merchandise on August 11, paid the full amount due on August 16 and received the discount. Juniper Company uses the gross method of accounting for purchases. Following accrual accounting method, the journal entry to record the purchase on August 7 is:

Debit Merchandise $9,750

Credit Accounts Payable $9,750

3 0

3 years ago

Goodwill is to be recorded. how much goodwill should be recognized, and what is darrow’s beginning capital balance?

mr_godi [17]

$410,000 goodwill should be recognized, and $270,000 is Darrow's beginning capital balance.

The implied value of the company is $900,000 ($270,000 ÷ 30%). Because the money is going to the partners rather than into the business, the capital total is $490,000 before realigning the balances. Hence, goodwill of $410,000 is recognized based on the implied value ($900,000 - $490,000). This goodwill is assumed to represent unrealized business gains and is attributed to the original partners according to their profit and loss ratio. They will then each convey 30 percent ownership of the $900,000 partnership to Darrow for a capital balance of $270,000.

Learn more about goodwill here: brainly.com/question/23710953

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The question is incomplete. Please read below to find the missing content.

Following are the capital account balances and profit and loss percentages (indicated parenthetically) for the William, Jennings, and Bryan partnership:

William (40%) $220,000

Jennings (40%) $160,000

Bryan (20%) $110,000

Darrow invests $270,000 in cash for a 30 percent ownership interest. The money goes to the original partners. Goodwill is to be recorded. How much goodwill should be recognized, and what is Darrow's beginning capital balance?

5 0

2 years ago