Should the company purchase the small technology firm? Use an interest rate of 12%. What is the “breakeven price” of the small technology firm? (Points : 10)\ 2. A bond has a par value of $100,000 and pays interest revenues of $5,000 per year.
They were given a 10% discount by the manufacturer. They paid $400 for shipping and sales tax of $3,000. Stine estimates that the machinery will have a useful life of 10 years and a residual value of $20,000. If Stine uses straight-line depreciation, annual depreciation will be • $3,760. • $4,072.
| 1. | Question : | (TCO A, B, C) External users want answers to all of the following questions except: | | | Student Answer: | | Is the company earning satisfactory income? | | | | Will the company be able to pay its debts as they come due? | | | | Did the company use a budget to plan its expenses? | | | | How does the company compare in profitability with competitors?
Reporting Intercorporate Interests (Equity vs Cost Method) 1. On January 1, 2007, Rotor Corporation acquired 30 percent of Stator Company’s Stock for $150,000. On the acquisition date, Stator reported Net assets of $450,000 valued at historical cost and %500,000 stated at fair Value. The difference was due to the increased value of buildings with a remaining life of 15 years. During 2007 and 2008 Stator reported Net Income of $25,000 and $15,000 and paid dividends $10,000 and $12,000, respectively.
Chapter 1 Assignment Complete Case 1, 3, 6, and 8 under Short Cases in Chapter 1. Case 1: 1. How much additional revenue must each company generate to recover the losses from the fraud? Clever: Profit Margin = 2,000/20,000 = .1 Recovery Amount = 1,000/.1 = 10,000 Alexander: Profit Margin = 5,000/20,000 = .25 Recovery Amount = 1,000/.25 = 4,000 Case 3: 1. Customer 2.
Fairmount Inc., a developer of radiology equipment, has stock outstanding as follows: 25,000 shares of cumulative 2%, preferred stock of $130 par, and 83,000 shares of $10 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $43,500; second year, $60,500; third year, $134,160; fourth year, $185,350. Calculate the dividends per share on each class of stock (preferred and common) for each of the four years. Round all answers to nearest whole cent. If no dividends are paid in a given year, enter "0".
If the expected demand during lead time is 25 per hour, the safety stock is 20 percent of the demand during lead time, the container size is 5, and the lead time to replenish an order is 5 hours, what the number of kanban card sets is needed? • 27 • 20 • 5 • 30 3. Which of the following is a multifactor measure of productivity? • Output/(Labor + Capital + Energy) • Output/All resources used • Output/(Materials) • Output/Inputs 4. Which of the following is an alternative possible service encounter included in the service-system design matrix?
Answer AR= 20x20000=400,000 3-2 Debt Ratio Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. What is the company’s debt ratio? Answer Equity multiplier Asset /equity = 2.5/1 A=L+E 2.5=1.5=+1 Debt/asset = 1.5/2.5 = .6 3-3 Market/Book Ratio Winston Washers’s stock price is $75 per share. Winston has $10 billion in total as- sets.
Answer AR= 20x20000=400,000 3-2 Debt Ratio Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. What is the company’s debt ratio? Answer Equity multiplier Asset /equity = 2.5/1 A=L+E 2.5=1.5=+1 Debt/asset = 1.5/2.5 = .6 3-3 Market/Book Ratio Winston Washers’s stock price is $75 per share. Winston has $10 billion in total as- sets.
According to an article written in Rolling Stone (2006), “Auditing is purchased in 12.5 hour blocks, known as "intensives." Each intensive can cost anywhere from $750 for introductory sessions to between $8,000 and $9,000 for advanced sessions” (60). The Rolling Stone article leads one to believe that Scientology claims its form of therapy is scientific and the truth will only be revealed to those who have the money to purchase advancement to levels. It appears that Scientology works more like a business than a