Answer:
The amount of the projected benefit obligation at December 31 was $ 38.34 million
Explanation:
According to the given data, we have the following:
Beginning PBO= $29.4 million
Service cost= $9.4 million
The actuary's discount rate was 10%, hence Interest cost (10% x $29.4 million)= $2.94 million
Also, there is a Loss (gain) on PBO=$0
, and pension benefits paid by the trustee were $3.4 million.
Therefore, to calculate the amount of the projected benefit obligation at December 31 we would have to use the following formula:
Ending PBO=Beginning PBO+Service cost+Interest cost-pension benefits
=$29.4 million+$9.4 million+$2.94-$3.4 million
=$38.34 million
Answer:
And for the new case we know that the sales increase by a factor of 2%, so then we can find the new number of sales like this:
And the Total August sales would be given by:
And the correct answer for this case would be:
$63,750
Explanation:
For this case the original number of sales for this case is 5000 units and the unitary price is given by 
And the total sales for the original case would be given by:
And for the new case we know that the sales increase by a factor of 2%, so then we can find the new number of sales like this:
And the Total August sales would be given by:
And the correct answer for this case would be:
$63,750
Answer:
Kindly check attached picture
Explanation:
Kindly check attached picture for detailed statement using the direct method
Since there is no debt, all the capital that the company raises is in the form of common equity.
Since there is only equity (meaning the firm is a fully equity firm), the weighted average cost of capital (WACC) is nothing but the cost of equity
In this case the WACC represents the cost of equity
Therefore, cost of equity = WACC = 8%
Answer:
$18,315,000
Explanation:
Total Income
:
= 15% of Total assets
= $13,900,000 × 15%
= $2,085,000
Total Sales
:
= Market price × Production volume
= $34 × 600,000
= $20,400,000
So, Target full product cost in total for the year
:
= Total Sales - Total Income
= $20,400,000 - $2,085,000
= $18,315,000
