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Mamont248 [21]
3 years ago
12

The following information is taken from Reagan Company's December 31 balance sheet: Cash and cash equivalents $ 10,319 Accounts

receivable 79,922 Merchandise inventories 69,862 Prepaid expenses 6,000 Accounts payable $ 16,850 Notes payable 96,138 Other current liabilities 11,400 If net credit sales for the current year were $602,000, the firm's days' sales uncollected for the year is: (Use 365 days a year.)
Business
1 answer:
garri49 [273]3 years ago
8 0

Answer:

49 days

Explanation:

Account receivable turnover ratio = Net credit sales / Accounts receivable

Account receivable turnover ratio = $602,000 / $79,922

Account receivable turnover ratio = 7.53

Average collection period = 365/7.53

Average collection period = 48.47277556440903

Average collection period = 49

Thus, firm’s sales uncollected for year is 49 days.

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"An investor has sold short stock worth $80,000 in a margin account, depositing the Regulation T margin requirement. If the mark
Bumek [7]

Answer:

$15000.

Explanation:

The worth of stock that the investor sold = $80000

The fall in the market value of the stock = $65000

Since the value of the stock falls to $65000. thus, the SMA in the account can be calculated by eliminating the decreased amount from the stock value. Therefore, the SMA in the account will be 80000-65000 = $15000

3 0
3 years ago
Big Game, Inc., is a manufacturer of hunting supplies. The following is a summary of the company's annual payroll-related costs:
grandymaker [24]

Answer:

(a) $9,435,000

(b) $5,230,000

(c) 1.27 or 127%

(d) 1.80 or 180%

Explanation:

(a) Big Game's total payroll- Related costs for the year:

= wages and salaries expense + payroll taxes + workers compensation premiums + group health insurance premium + contributions to employees pension plan

= $7,430,000 + 580,000 + 250,000 + 725,000 + 450,000

= $9,435,000

(b) Net amount of cash actually paid to employees:

= wages and salaries earned - Amount withheld from the employees pay

= $7,430,000 - $2,200,000

= $5,230,000

(c) Express total payroll related costs as a percentage of total wages and salaries expense:

= Total payroll related costs ÷ wages and salaries expense

= $9,435,000 ÷ $7,430,000

= 1.27 or 127%

(d) Express total payroll related costs as a percentage of employees take-home pay:

= Total payroll related costs ÷ Take home pay

= $9,435,000 ÷ $5,230,000

= 1.80 or 180%

8 0
3 years ago
Economic understanding and economic conditions do not affect a personal financial plan.
4vir4ik [10]
False ~~~~~~~~~~~~~~~~
7 0
3 years ago
When transportation costs are added to production costs, it becomes unprofitable to ship some products over a large distance. Th
pishuonlain [190]

Answer:

Option C. Have a low value-to-weight ratio.

Explanation:

The reason is that the transportation cost is connected with the weight of the product whereas the profit of the profit will diminish if the value to weight is low which means that the profit generated is very low which will be paid off to transport the product. So the option C is correct.

Option A is not connected with transportation cost which turns the profitable products into unprofitable products due to its high cost.

Option B is opposite of option C hence both are incorrect.

Option D is incorrect because if the product is only produced in one region then it will be the only firm offering that product which means it can price its product geographically to adjust the transportation cost. Hence it is also not connected with the transportation cost which turns the profitable products into unprofitable products due to its high cost.

7 0
3 years ago
Barton Industries expects that its target capital structure for raising funds in the future for its capital budget will consist
iris [78.8K]

Answer:

a. With New Stock = 8.307%

b. With Old stock = 7.971%

Explanation:

The weighted average cost of capital (WACC) defines the cost rate that blends the capital structure cost including equity, debt, and preferred stock.

Requirement A

If it uses retained earnings as its source of common equity,

Given,

The weight of the combination of the capital structure is -

W_{d} = 40% = 0.40; W_{p} = 5% = 0.05; W_{e} = 55% = 0.55

For cost of debt, we have to find cost of debt after tax, R_{d}(1 - t) =

6.9% x (1 - 0.40) = 4.14%

Cost of preferred stock, R_{p} = 6.4%

Cost of new Equity, R_{e} = 11.51%

We know, the weighted average cost of capital (WACC) =

W_{d} x R_{d} + W_{p} x R_{p} + W_{e} x R_{e}

= (0.40 x 4.14%) + (0.05 x 6.4%) + (0.55 x 11.51%)

= 1.656% + 0.32% + 6.3305%

= 8.307%

Requirement B

If it has to issue new common stock, the weighted average cost of capital (WACC) = W_{d} x R_{d} + W_{p} x R_{p} + W_{s} x R_{s}

Given,

The weight of the combination of the capital structure is -

W_{d} = 40% = 0.40; W_{p} = 5% = 0.05; W_{e} = 55% = 0.55

For cost of debt, we have to find cost of debt after tax, R_{d}(1 - t) =

6.9% x (1 - 0.40) = 4.14%

Cost of preferred stock, R_{p} = 6.4%

Cost of new Equity, R_{s} = 10.9%

Therefore, putting the value in the equation,

WACC = (0.40 x 4.14%) + (0.05 x 6.4%) + (0.55 x 10.9%)

WACC = 1.656% + 0.32% + 5.995%

WACC = 7.971%

4 0
3 years ago
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