Souza Inc, which produces and sells a single product, has provided its contribution format income statement for October.

Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonu

marishachu [46]

Answer:

$42,853

Explanation:

The computation of the allowable MACRS depreciation on Convers’s property in the current year is shown below:

<u>Assets Place in service Quarter Original Basis Rate Depreciation</u>

Machinery

(7 years) Oct 25 4th $70,000 14.29% $10,003

Computer

Equipment

(5 years) Feb 03 1st $10,000 20% $2,000

Used delivery

truck

(5 years) Mar 17 1st $23,000 20% $4,600

Furniture

(7 years) Apr 22 2nd $150,000 14.29% $21,435

Qualified

improvement

(39 years) May 12 2nd $300,000 1.605% $4,815

Total $553,000 $42,853

Refer to the MACRS depreciation table

and we used the half year convention

5 0

3 years ago

Accounts receivable from sales transactions were $51,000 at the beginning of the year and $64,000 at the end of the year. Net in

PtichkaEL [24]

<h2>Answer: $78,00</h2>

Accounts receivable from sales transactions were $51,000 at the beginning of the year and $64,000 at the end of the year. Net income reported on the income statement for the year was $105,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is?

Explanation:

4 0

3 years ago

The market capitalization treasure on the stock of flex steel company is 12%. the expected ROE is 13% and the expected EPS are 3

VLD [36.1K]

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.

8 0

3 years ago

Job cost sheets can provide information to managers on unit cost trends, the cost impact of continuous improvement in the manufa

Lera25 [3.4K]

Answer:

Yes its True ✅

5 0

2 years ago

Discuss the unique marketing characteristics a product or service required based on the specific phase of the product life cycle

laiz [17]

Answer: The product life cycle of a unique marketing can be characterized by introduction, growth, maturity and decline.

Explanation:

The product life cycle of a unique marketing can be characterized by introduction, growth, maturity and decline.

Introduction; This is viewed as an entry level into the market. Where the goods begin to gain a little recognition

Growth; this is described as a movement from introduction to a fast or slow consistent rapid growth of the product in the market.

Maturity; is described as the growth from the growth category, where the product gain some market stability and is now known by the public.

Decline; is the stage of slow and loss of recognition in the market space which could be caused by lack of creativity or consistency drop

While some products may stay in a prolonged maturity state, all products eventually phase out of the market due to several factors including saturation, increased competition, decreased demand and dropping sales

5 0

3 years ago