From 1960 until 2012, the long-run average rate of inflation in the united states was

TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $1,500,000 and there are 135,000

Masteriza [31]

Answer:

(a) $61.11

(b) $54.44

Explanation:

1)

Value of Stock = Benchmark price-sales ratio × Stock's sales

= 5.5 × 1,500,000

= $8,250,000

Thus,

Price of stock = Value of Stock ÷ shares outstanding

= 8,250,000 ÷ 135,000

= $61.11

Thus, I would pay $61.11 for the stock.

2)

Value of Stock = Benchmark price-sales ratio × Stock's sales

= 4.9 × 1,500,000

= $7,350,000

Thus,

Price of stock = Value of Stock ÷ shares outstanding

= $7,350,000 ÷ 135,000

= $54.44

Thus, I would pay $54.44 for the stock.

7 0

3 years ago

ABC Company is considering investing in new production equipment at a cost of $60,000 with a 10-year useful life and no salvage

ikadub [295]

Answer:

a. Operating Income = Sales - Production Cost - Depreciation Expense

Operating Income = $100,000 - $82,600 - $6,000

Operating Income = $11,400

b. Average Investment = (Initial Equipment Cost + Residual Value) / 2

Average Investment = ($60,000 + $0) / 2

Average Investment = $60,000 / 2

Average Investment = $30,000

c. Accounting Rate of Return = (Operating Income / Average Investment) * 100

Accounting Rate of Return = ($11,400 / $30,000) * 100

Accounting Rate of Return = 0.38 * 100

Accounting Rate of Return = 38%

7 0

2 years ago

Cabinaire Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assem

Ivahew [28]

Answer:

Results are below.

Explanation:

Giving the following information:

Supervisor salaries $117,000 per month

Depreciation $21,000 per month

Direct labor rate $15 per hour

Cabinets per hour= 60/20= 3

We need to determine the flexible budget for different production levels:

12,000 units:

Total direct labor hours= (12,000 / 3)= 4,000 hours

Total variable cost= 4,000*15= 60,000

Total fixed costs= 21,000 + 117,000= 138,00

Total cost= $198,000

15,000 units:

Total direct labor hours= (15,000 / 3)= 5,000 hours

Total variable cost= 5,000*15= 75,000

Total fixed costs= 21,000 + 117,000= 138,00

Total cost= $213,000

18,000 units:

Total direct labor hours= (18,000 / 3)= 6,000 hours

Total variable cost= 6,000*15= 90,000

Total fixed costs= 21,000 + 117,000= 138,00

Total cost= $228,000

3 0

3 years ago

The Chart Company has a process costing system. All materials are added when the process is first begun. At the beginning of Sep

Strike441 [17]

Answer:

c) 48,000

Explanation:

Equivalent Units

To apportion cost between work in progress and completed units in a particular period, we use equivalent units. Equivalents units are notional whole units which represent incomplete work and are used to apportion cost between completed units and work in progress

Equivalent Units = Degree of Completion × Units of products

Item units workings E.U

Finished products 45,000 100% × 45,000 = 45,000

Closing WIP 5000 3/5 × 5000 = 3,000

Total equivalent unit 48,000

Equivalent unit for the conversion cost= 45000 +3000= 48,000

6 0

3 years ago

The HRM specialists at A&C Company took the opportunity to increase productivity and decrease manual data analysis by using

FrozenT [24]

Answer:

Skills inventory

Explanation:

Skills inventory refers to the skills stored in an individual i.e one's capabilities and skills.

Skills inventory assessment makes an employer identify how well an employee would be able to meet the skills required at the job and how those skills would aid in the achievement of organizational goals.

It refers to assessing and understanding the competencies of the current staff by an organization.

For the above purpose, businesses may use commercial software or database management systems (DBMS).

In the given case, the HRM specialists exercised the option of using computer network in addition to database management system, to develop a skills inventory , post which, the company is able to successfully identify specific organizational skills.

6 0

3 years ago