Answer:
Sole Purpose Shoe Company
The reason for Sarah to want to use standard costs to compare with her actual costs is:
A) Management can evaluate the differences between standard costs and actual costs to focus on correcting the cost variances.
Explanation:
Standard costs provide a control technique for evaluating the Sole Purpose Shoe Company's performance at three levels: a standard performance level, a measure of actual performance, and a measure of the difference (variance) between standard and actual costs. Sarah will use the variance resulting from the comparison of standard costs with actual costs to measure the non-financial performance of the entity.
Answer:
a. ROE (r) = 13% = 0.13
EPS = $3.60
Expected dividend (D1) = 50% x $3.60 = $1.80
Plowback ratio (b) = 50% = 0.50
Cost of equity (ke) = 12% = 0.12
Growth rate = r x b
Growth rate = 0.13 x 0.50 = 0.065
Po= D1/Ke-g
Po = $1.80/0.12-0.065
Po = $1.80/0.055
Po = $32.73
P/E ratio = <u>Current market price per share</u>
Earnings per share
P/E ratio = <u>$32.73</u>
$3.60
P/E ratio = 9.09
b. ER(S) = Rf + β(Rm - Rf)
ER(S) = 5 + 1.2(13 - 5)
ER(S) = 5 + 9.6
ER(S) = 14.6%
Explanation:
In the first part of the question, there is need to calculate the expected dividend, which is dividend pay-our ratio of 50% multiplied by earnings per share. We also need to calculate the growth rate, which is plowback ratio multiplied by ROE. Then, we will calculate the current market price, which equals expected dividend divided by the difference between return on stock (Ke) and growth rate. Finally, the price-earnings ratio is calculated as current market price per share divided by earnings per share.
In the second part of the question, Cost of equity (return on stock) is a function of risk-free rate plus beta multiplied by market risk-premium. Market risk premium is market return minus risk-free rate.
Answer:
A. a computer programmer who starts her own software Company
Explanation:
Entrepreneurship is the process through which new businesses are started. An entrepreneur is a person who takes risks by committing their time and resources to start a business.
The computer programmer is the entrepreneur in this case. She is starting a new software business. Other than her computer skills, she will need to be creative and innovate to develop products that will appeal to customers. She will take all risks of her new business but also stand to enjoy its success.
Solution:
Pick some smart number for x,
let x=2 (I chose x=2 as in this case monthly shipments would be X/2=1).
From January to April, inclusive 4x=8 brooms were produced and
in May the company paid for storage of 8-1 =7 brooms,
in next month for storage of 6 and so on.
So the total storage cost would be:
= 1 ∗ (7+6+5+4+3+2+1+0)
= 28
--> as x=2 , then 28 = 14x
So the answer is 14x
Answer:
C. New equipment was purchased for $145,000 cash. d. A $29,000 note was paid at maturity on January 1 e. On January 1, 2021, bonds were sold at their $58,000 face value. f. Common stock ($45,000 par) was sold for $65,000. 9. Net Income was $90,000 and cash dividends of $50,000 were paid to shareholders. Required: Prepare the statement of cash flows of Wright Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (.e., 10,000 should be entered as 10).) WRIGHT COMPANY Statement of Cash Flows For the year ended December 31, 2021 (s in thousands) Cash flows from operating activities Cash inflows Cash outflows Net cash flows from operating activities Cash flows from investing activities
Explanation:
