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3 years ago

Presented below is selected data related to Mike Corporation at December 31, 2020. Mike reports financial information monthly.

Business

1 answer:

leva [86]3 years ago

8 0

Answer:

a. Total assets of the firm:

Cash $8,000

Equipments $10,000

Accounts Receivable $9,000

Total Assets $27,000

b. Net income of the firm

Service Revenue $36,000

Less: Rent Expenses $11,000

Less: Utilities Expense $4,000

Less: Salaries and Wages Expense $7,000

Net Income $14,000

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The Marketing Department has proposed increasing the West Division's monthly advertising by $15,000 based on the belief that it

kramer

Answer:

Net Increase in profit is $27,000

Explanation:

* The data was missing in this question, a similar question is attached with the answer, and answer is made accordingly. Please find it.

Sales ( $350,000 x 120% ) = $420,000

- Variable cost ( 40% ) = $168,000

- Traceable fixed cost( 175000+15000) = $190,000

Net Profit = $62,000

Net Increase in Net Income = $62,000 - ( 350,000 - (350,000 x 40%) - 175,000 ) = 27,000

6 0

4 years ago

A portfolio manager buys $1 million of U.S. Treasury bills maturing in 90 days at a price of $990,390 and discount rate of 3.8%.

ioda

Answer:

A. Outperforming the benchmark

Explanation:

Calculation to determine what the manager's portfolio

First step is to calculate the Treasury bill, bond-equivalent yield for U.S.

Using this formula

Treasury bill

=(Face value − Market value) / Market value × 365 / 90

Let plug in the formula

Treasury bill= ($1,000,000 − 990,390) / 990,390 × 365 / 90

Treasury bill=0.0097 × 0.04056

Treasury bill= 3.93%.

Second step is to calculate The total market value of the portfolio

Total market value portfolio=$990,390 + $100,000 + $200,000

Total market value portfolio= $1,290,390

Now let calculate the manager's portfolio

Manager's portfolio=3.93% ($990,390 / $1,290,390) + 4.34% ($100,000 / $1,290,390) + 4.84% ($200,000 / $1,290,390)

Manager's portfolio=3.93%(76.75%)+4.34%(7.75%)+4.84%(15.50%)

Manager's portfolio=0.0410*100

Manager's portfolio= 4.10%

Therefore Based on the above calculation the manager's portfolio is 4.10% OUTPERFORMING THE BENCHMARK because the manager's portfolio of 4.10% is higher than bond-equivalent yield benchmark portfolio of 4.0%.

7 0

3 years ago

5) On July 12, Reliable Repair Service extended an offer of $150,000 for land that had been priced for sale at $185,000. On Sept

elixir [45]

Answer:

The price should be recorded as $167,500

Explanation:

As per the accounting principles, assets should be recorded at the price they were paid for. In case of a purchase, the accountant should record in the books the amount the company paid to acquire the asset. For sales, the amount received from the buyer is the figure to be recorded in the books.

For Reliable Repair Service, there were different prices quoted, but the buyer paid $167,500. It means the company sold the land for $165,000. This is the amount that should be recorded in the books.

5 0

3 years ago

Clark Company sells 8% bonds having a maturity value of $5,000,000 for $5,421,236. The bonds are dated January 1, 2017, and matu

avanturin [10]

Answer:

attached table

Explanation:

We use goal seek of excel to determinate the market rate:

Which is the rate that discounting the coupon payment and maturity matches the 5,421,236 we receive for the bond:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 200,000.000

time 10

rate 0.030117724

$200000 \times \frac{1-(1+0.0301177235440986)^{-10} }{0.0301177235440986} = PV\\$

PV $1,705,016.0533

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 5,000,000.00

time 10.00

rate 0.030117724

$\frac{5000000}{(1 + 0.0301177235440986)^{10} } = PV$

PV 3,716,219.95

PV c $1,705,016.0533

PV m $3,716,219.9467

Total $5,421,236.0000

Now, we determiante the schedule by doing as follow:

carrying value x market rate = interest expense

cash outlay per period: face value x coupon rate

the amortization will be the difference

after each payment we adjust the carrying value by subtracting the amortization

3 0

3 years ago

For Bonita Industries at a sales level of 4000 units, sales is $69000, variable expenses total $46000, and fixed expenses are $2

Marysya12 [62]

Answer:

the contribution margin per unit is $5.75 per unit

Explanation:

The computation of the contribution margin per unit is shown below:

The Contribution margin per unit is

Contribution margin per unit= Contribution margin ÷ Sales units

= ($69,000 - $46,000 ) ÷ 4,000

= $5.75 per unit

Hence, the contribution margin per unit is $5.75 per unit

We simply applied the above formula so that the correct value could come

And, the same is to be considered

7 0

3 years ago