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3 years ago

Sub Sandwiches of America made the following expenditures related to its restaurant.

Business

1 answer:

galina1969 [7]3 years ago

3 0

Answer:

1. Heating Equipment

2. Premises

3. Maintenance Expense

4. Prepaid Insurance

5. Intangible Asset ; Logo

6. Premises

Explanation:

1. Replacement of heating equipment is substantial hence it is capitalized to the Heating Equipment Account.

2. The project is capitalized to the Premises Account as it form part of premises.

3. Annual Building maintenance is a revenue expenditure not capitalized.

4. An Asset Insurance Prepaid for future economic benefits to be realized is recognized.

5. The new sign would result in inflow of economic benefit and is non-tangible hence Intangible Asset is recognized.

6. Work done is capitalized in the Premises Account

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What happens when production is inside the production possibilities curve

Paul [167]

Answer:

When it shifts inwards, it indicates that the economy is shrinking due to a failure in its allocation of resources and optimal production capability. A shrinking economy could be a result of a decrease in supplies or a deficiency in technology.

Explanation:

8 0

3 years ago

a share of stock is now selling for $90. it will pay a dividend of $10 per share at the end of the year. its beta is 1.0. what m

Tom [10]

Investors anticipate that the stock will trade at $96.21 at the end of the year.

In line with CAPM

Required rate of Return (Ke) = Rm - (E(Rm) - Rf) * Beta

Rf = the risk-free rate.

E(Rm) stands for the expected rate of return on a market portfolio.

Ke = 4% + 1 * (18% - 4%) follows.

= 4% + 14% = 18%

now utilizing Gordon Growth Model

The stock's price is D1/ (Ke- g)

where D1 is the dividend for the next year.

g = Rate of Growth

90 = 10 / (18% - g)

g = 18% - 10/90 = 18% - 11.11% = 6.89%

Price anticipated at the year-end = D2 (Ke- g)

D2 = D1 * (1 + g) = 10 * (1 + 6.89%) = $10.689

Expected Price at the end of the year is equal to 10.689/ (18% - 6.89%), or 10.689/11.11%, or $96.21.

Investors anticipate that the stock will trade at $96.21 at the end of the year.

what is a market portfolio?

The term "market portfolio" refers to a portfolio that includes the weighted total of each item traded on the market, with the required supposition being that these assets are endlessly divisible.

learn more about it market portfolio-brainly.com/question/28005592

#SPJ4

8 0

1 year ago

Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead

kupik [55]

Answer:

Underapplied Manufacturing Overhead $23,000

Explanation:

Sawyer Manufacturing Corporation

Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base

= $300,000 ÷ 52,000 direct labor hours

= 5.7 Approximately $6 per direct labor-hour

Overhead over or underapplied Actual MOH

= 365,000

Applied MOH = $6 x 57000 = $342,000

Underapplied Manufacturing Overhead = 365,000-342,000 = 23,000

Therefore The Corporation's applied manufacturing overhead cost for the year was $23,000

8 0

3 years ago

Mining Corporation purchases the business assets of Open Pit Inc., including its equipment and supplies, for an agreed-to price,

11Alexandr11 [23.1K]

Answer:

A sales.

Explanation:

The uniform commercial code (UCC) is a set of standardized business laws which are put in place for the regulation of financial contracts and commercial transactions used across different states in the United States of America.

In this scenario, Mining Corporation purchases the business assets of Open Pit Inc., including its equipment and supplies, for an agreed-to price, payable in installments. Under the UCC, this transaction is a sales.

4 0

2 years ago

Your firm is considering opening a branch office in Kyle. The office would cost $485,000 to build the office. During the office

wariber [46]

Answer:

The NPV from opening the branch office is negative ( -$106668.08). Thus the branch office should not be opened.

Explanation:

The decision to open the branch office will be taken based on the NPV provided by opening of the branch office. If the NPV of a project is positive based on the required rate of return used as a discount rate fro cash flows, the investment is worth undertaking.

The net present value (NPV) for a project can be calculated as,

NPV = CF1 / (1+r) + CF2 / (1+r)² + ... + CFn / (1+r)^n - Initial Outlay

Where,

r is the appropriate discount rate
Initial Outlay is the Initial cost of the project
CF represents cash flows from the project

As the required return is 16%, we will take this as the appropriate discount rate.

NPV = 45000 / (1+0.16) + 120000 / (1+0.16)² + 150000 / (1+0.16)³ +

150000 / (1+0.16)^4 + 150000 / (1+0.16)^5 - 485000

NPV = - $106668.08

As the NPV from project is negative at a required return of 16%, the project should not be under taken and the branch office should not be open.

7 0

3 years ago