Answer: a). Debit Factory Payroll Payable $160,000; credit Cash $160,000.
Explanation: Direct labor refers to the manpower used in production. They are the factory workers involved in using the raw materials to produce finished goods.
Expense on direct labor is provided for during the production by a debit to factory payroll expense and a credit to factory payroll payable.
As such, the journal entry will be a debit to factory payroll payable $160,000 and a credit to cash $160,000. This means cash will reduce by $160,000 as the factory workers are paid while payables which is a provision account will reduce as well on the cash book by the same amount.
Answer: $80 million per year for 25 years
Explanation:
The option you should choose is one that will guarantee you the highest present value.
This means that you need to discount the annual payment of $80 million per year for 25 years to find the present value. As you did not include a rate, we shall assume a rate of 8% for reference purposes.
The annual payment is an annuity so the present value can be calculated by:
Present value of annuity = Annuity payment * Present value interest factor, rate, no. of years
= 80,000,000 * Present value interest factor, 8%, 25 years
= 80,000,000 * 10.6748
= $853,984,000
<em>The present value of the annual payment is more than the present value of the $850 million received today so the Annual payment should be taken. </em>
Answer:
P5 = 42.77671205 rounded off to 42.78
Explanation:
The constant growth model of the DDM will be used to calculate the price of the stock. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
- g is the constant growth rate
- D0 is the dividend paid today or most recently
- r is the required rate of return
As we use D0 * (1+g) or D1 to calculate the value of the stock today (P0), we will use D6 to calculate the value of the stock 5 years from now.
D6 = 4.9 * (1+0.02)^6
D6 = $5.518195854
P5 = 5.518195854 / (0.149 - 0.02)
P5 = $42.77671205 rounded off to $42.78
Answer:
"D"
Explanation:
Daniel belongs to the <u>Marketing</u> department of Striking.