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salantis [7]
3 years ago
13

McKay Company sells lamps and they have decided that they would make the price of their lamps 30% more than what it cost the com

pany to make the lamp. So if the cost to make the lamp was $36.50 what would be the selling price of the lamp?
Business
2 answers:
julsineya [31]3 years ago
6 0
I believe the answer is $47.50
Viefleur [7K]3 years ago
6 0

Answer:

$47.45

Explanation:

Cost of the Lamp = $36.50

Proposed Selling Price = 30% of Cost of Production + Cost of Production = (30/100 X 36.50)+36.50 = 10.95+36.50 = $47.45

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The prepaid insurance account had a beginning balance of $6,600 and was debited for $2,300 for premiums paid during the year. Jo
____ [38]

Explanation:

The adjusting entry is as follows

Insurance expense A/c Dr  $4,800

           To Prepaid insurance A/c  $4,800

(Being the insurance expense is recorded)

The computation is shown below:

= Beginning balance + debited amount - unexpired insurance amount

= $6,600 + $2,300 - $4,100

= $4,800

So while preparing the adjusting entry, we debited the insurance expense account and credited the prepaid insurance account

8 0
3 years ago
The Rogers Corporation has a gross profit of $746,000 and $305,000 in depreciation expense. The Evans Corporation also has $746,
allochka39001 [22]

Answer:

Net cash flow for The Rogers Corporation: $435,200

Net cash flow for The Evans Corporation: $332,400

Explanation:

For The Rogers Corporation:

Income before tax =  $746,000 - $305,000 - $224,000 = $217,000

Tax = $217,000 x 40% = $86,800

Net income afer tax = $217,000 - $86,800 = $130,200

Net cash flow = Gross profit - Selling and administrative expense - Tax = $746,000 - $224,000 - $86,800 = $435,200

For The Evans Corporation

Income before tax =  $746,000 - $48,000 - $224,000 = $474,000

Tax = $474,000 x 40% = $189,600

Net income afer tax = $474,000 - $189,600 = $284,400

Net cash flow = $746,000 - $224,000 - $189,600 = $332,400

5 0
3 years ago
As a financial manager for WillPower, Inc, you have the following information: a) The company follows a residual dividend policy
8_murik_8 [283]

Answer:

a. Amount funded with equity is $4,800,000

b. Dividend is $3,200,000

c. Dividend Payout ratio is 40.00%

Explanation:

Note: This question is incomplete, and the complete one is as follows:

As a financial manager for WillPower, Inc, you have the following information: a) The company follows a residual dividend policy; b) The total capital budget for next year is likely to be $8,000,000; c) The forecasted level of earnings next year is $8,000,000; d) The target or optimal capital structure is a debt ratio of 40%;

Please answer the following questions:

a. What will be the amount funded with equity for the project ? (Keep the answer to a whole number. Example of answer format: $1,000,000)

b. Compute the amount of the dividend . (Keep the answer to a whole number. Example of answer format: $1,000,000)

c. Compute the dividend pay-out ratio . (Keep the answer to two decimals. Example of the answer format: 55.55%)

The following are therefore the explanation of the answers to the question:

a. What will be the amount funded with equity for the project ? (Keep the answer to a whole number. Example of answer format: $1,000,000)

Given that the target or optimal capital structure is a debt ratio of 40%, this implies that there will be 40% debt finance and 60% (100% - 40%) equity finance. Therefore, we have:

Amount funded with equity = Total capital budget for next year * Percentage of equity finance = 8,000,000 * 60% = $4,800,000

b. Compute the amount of the dividend. (Keep the answer to a whole number. Example of answer format: $1,000,000)

Since the company follows a residual dividend policy, it implies that the earnings available are employed to finance capital expenditure budget first before dividends are paid to the shareholders.

Since amount funded with equity is $4,800,000 as obtained in part a, it implies that this must be deducted first from the forecasted level of earnings next year to obtain the residual that will be paid as dividend as follows:

Dividend = Forecasted level of earnings next year - Amount funded with equity = $8,000,000 - $4,800,000 = $3,200,000

c. Compute the dividend pay-out ratio . (Keep the answer to two decimals. Example of the answer format: 55.55%)

Dividend payout ratio refers to the percentage of the earnings or net income of a company that is paid by the company to its shareholders as dividend. This can therefore be calculated

Dividend Payout ratio = Dividend / Earnings = $3,200,000 / $8,000,000 = 0.40, or 40.00%

Therefore, WillPower, Inc is expected to pay 40% of its earnings as dividend to its shareholders.

4 0
2 years ago
Which of the following would likely be covered under homeowners insurance but NOT by renter's insurance?a. Your basement floods,
VladimirAG [237]

Answer:

C

Explanation:

The answer is a tree branch breaks your bedroom window during a storm because this is covered by the homeowners insurance and not by the renters insurance

Renter’s insurance does not cover building or Structure on sites

7 0
3 years ago
Charlie sells cookies only in packages of 10. It costs him $3.50 in materials per package. Additionally, he has overhead costs o
yaroslaw [1]

Let x represent the number of packages Charlie needs to sell to make a monthly income of $5, 000 
Since he sells cookies only in packages of 10 then he has to sell 10x to make that income. But Charlie has expenses that has to be deducted from his total sales to make that figure.  
So the total expenses is $1, 500 in overhead and an extra $3.50 per material per package. So the total expenses = 1500 + 3.50x 
If he has to make $5, 000 at the end of the month we have
 10x - (1500 + 3.50x) = 5000
 10x - 1500 - 3.50x = 5000
 6.50x = 5000 + 1500 = 6500
 Solving we find:
 x = 1, 000 packages


5 0
3 years ago
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