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3 years ago

You have been offered a job with an unusual bonus structure. as long as you stay with the firm

Business

1 answer:

Masteriza [31]3 years ago

7 0

Answer:

This question is incomplete however as per our research the question should be

You have been offered a job with an unusual bonus structure. As long as you stay with the firm, you will get an extra $70,000 every seven years, starting seven years from now.

What is the present value of this incentive if you plan to work for the company for 42 years and the interest rate is 6.0%(EAR)?

The detail answer with calculation is given below.

Explanation:

Present value is the discounted value of the future value. Time Value of money theory states that the value of the money increases as time passes. This current value is known as the present value.

The present value of this incentive if you plan to work for the company for 42 years is 126,964.34 $. (W-1)

(W-1)

Year- time Discount Factor* Net present value Calculation **

7 0.6651 46,554.00

14 0.4423 30,961.07

21 0.2942 20,590.88

28 0.1956 13,694.11

35 0.1301 9,107.37

42 0.0865 6,056.92

126,964.34

*DF=(1+i)^t

**PV= DF*70000

where i=6% i.e interest rate

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Which of the following would be considered a cash inflow in the financing activities section of the statement of cash flows?

SIZIF [17.4K]

Answer:

1.Issuing bonds payable.

The company receive cash through third parties financial capital

Explanation:

financing activities

cash disbursement or cash proceeds from afinancing activities surch as:

loan, bonds, issuance of stock, treasury stock, notes, other.

4.Collection of a loan made to another company.

The company invest his cash in giving a loan to gain interest, it wasn't a financial decision to increase cash, it was an investment to generate cash.

2.Receiving cash from customers. it would be operating activites. It is a source of cash from the main activity.

3.Sale of equipment. It would be investing

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3 years ago

Francis was just learning to drive. She forgot to put the car into park and it rolled down the driveway and into the neighbor's

OverLord2011 [107]

Answer:

Part A: Liability Coverage

Explanation:

The automobile insurance policy that does not cover the insured in person but his liability to third party for bodily injury and property damage caused by him fall under liability coverage.

An automobile accident. Liability claims for pain and suffering can sometimes be urge, The liability coverage. helps in shielding the insured from payments that would ordinarily be paid by him.

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3 years ago

9. The controlling function of management could also be described as (1 point)

svetoff [14.1K]

Answer:

D) evaluation

Explanation:

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3 years ago

Activity-Based Costing: Factory Overhead Costs

son4ous [18]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Estimated factory overhead:

fabrication, $448,000

assembly, $180,000

setup, $222,600

inspection, $189,000

Fabrication Assembly Setup Inspection

Speedboat 7,000 dlh 22,500 dlh 50 setups 88 inspections

Bass boat 21,000 7,500 370 612

28,000 dlh 30,000 dlh 420 setups 700 inspections

Each product is budgeted for 5,000 units of production for the year.

First, we need to calculate the predetermined overhead rate for each activity using the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

fabrication= 448,000/28,000= $16 per direct labor hour

assembly= 180,000/30,000= $6 per direct labor hour

setup= 222,600/420= $530 per setup

inspection= 189,000/700= $270 per inspection

Now, we can allocate overhead to each product line:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Speed boat:

Allocated MOH= 7,000*16 + 22,500*6 + 50*530 + 88*270= $297,260

Bass boat:

Allocated MOH= 21,000*16 + 7,500*6 + 370*530 + 612*270= $742,340

Finally, the unitary overhead cost:

Speed boat= 297,260/5,000= $59.45

Bass boat= 742,340/5,000= $148.47

8 0

3 years ago

Harrison Forklift's pension expense includes a service cost of $10 million. Harrison began the year with a pension liability of

ss7ja [257]

Answer:

1. ($ in millions)

Dr Pension expense (total) $14

Dr Plan assets (expected return on assets)$4

Cr PBO $16

Cr Net loss—AOCI(current amortization) $2

2 ($ in millions)

Dr Pension expense (total) $10

Dr Plan assets (expected return on assets) $4

Dr Net gain—AOCI(current amortization) $2

Cr PBO $16

($10 service cost + $6 interest cost)

3. ($ in millions)

Dr Pension expense (total) $17

Dr Plan assets (expected return on assets) $4

Cr PBO $16

Cr Net loss—AOCI(current amortization) $2

Cr Prior service cost(current amortization) $3

Explanation:

Preparation of the appropriate general journal entries to record Harrison's pension expense in

1. ($ in millions)

Dr Pension expense (total) $14

($16+$2-$4)

Dr Plan assets (expected return on assets)$4

Cr PBO $16

($10 service cost + $6 interest cost)

Cr Net loss—AOCI(current amortization) $2

2 ($ in millions)

Dr Pension expense (total) $10

($16-$4-$2)

Dr Plan assets (expected return on assets) $4

Dr Net gain—AOCI(current amortization) $2

Cr PBO $16

($10 service cost + $6 interest cost)

3. ($ in millions)

Dr Pension expense (total) $17

($16+$2+$3-$4)

Dr Plan assets (expected return on assets) $4

Cr PBO($10 service cost + $6 interest cost) $16

Cr Net loss—AOCI(current amortization) $2

Cr Prior service cost(current amortization) $3

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3 years ago