$15,300C.$18,700D $23,700E. $35,500 | 3 | b | Kaylor Equipment Rental paid $75 in dividends and $511 in interest expense. The addition to retained earnings is $418 and net new equity is $500. The tax rate is 35 percent. Sales are $15,900 and depreciation is $680.
What is the amount of its credit carryover and the last year to which the carryover could be used? Answer: $7,750 carried over to 2004 or 2025 4. Margolin Corporation has a regular taxable income of $120,000. It has a positive adjustment of $90,000, preference items of $50,000 and negative adjustments of $40,000. What is its alternative minimum tax?
Question 1. a) How many parts should you purchase each time you place an order? R=800- ORDERING COST Annual carrying cost of capital= 20% .20 lost per dollar R= 50000 H= .80 r= .20 cost per dollar C= unit cost H=rC Qo= √2RS/H= √(2(50,000)(800)/.8) = 10,000 10,000 parts should be purchased each time an order is placed. (b) To satisfy annual demand, how many times per year will you place orders for this part? R/Qo= 50,000/10,000= 5 times per year Question 2: (a) Determine BIM’s total annual cost of production and inventory control. Q= 4 weeks supply = 1600 units R= 400 units a week= 20000 units/ year C= purchase cost per unit= $1250 X (1-.20)= 1,000 H= holding cost= rC= $200 per unit / year S= setup cost= 2000 + 93.75 = $2,093.75 Setups per year= R/Q= 20000/1600= 12.5 Annual setup cost= (R/Q)(S)=12.5X $2,093.75= $26,172 Annual Holding cost= (q/2)(H)= (1600 /2)X $200= $160,000 Total Annual Cost= Annual Setup Cost+ Annual Holding Cost Total Annual Cost= 26,172+160,000 BIM’S Total Annual Cost= $186,172 (b) Compute the economic batch size and the resulting cost savings.
$30,000 of depreciation on the equipment used to manufacture the parts. c. The supervisor's salary of $25,000, which would be avoided if the part is purchased from an outside supplier. d. $15,000 in rent from leasing the production space to another company if the part is purchased from an outside supplier. status: correct (1.0) correct: b your answer: b feedback: Correct. ________________________________________ 2 The following information pertains to the Norfolk Company's three products: Product B's production is increased to 700 units per year but B's selling price on all units of B is reduced to $8.00.
Springfield Express is a luxury passenger carrier in Texas. All seats are first class, and the following data are available: Number of seats per passenger train car 90 Average load factor (percentage of seats filled) 70% Average full passenger fare $ 160 Average variable cost per passenger $ 70 Fixed operating cost per month $3,150,000 a. Contribution margin per passenger = $160 - $70 = $90 Contribution margin ratio = $90 / $160 = 56.25% Break-even point in passengers = 3,150,000 / 90 = 35,000 Beak-even point in dollars = 3,150,000 / .5625 = $5,600,000 b. Compute # of seats per train car (remember load factor?) = 90 * 70% = 63 If you know # of BE passengers for one train car and the grand total of passengers, you can compute # of train cars (rounded) Break-even # of passengers = 35,000 Break-even # of cars = 35,000 / 63 = 556 c. Contribution margin = 190 – 70 = 120 Break-even point in passengers = fixed costs/ contribution margin Passengers = 3,150,000 / 120 = 26,250 @ 60% load = 90 * 0.6 = 54 train cars (rounded) = 26250 / 54 = 486 The monthly break-even point in # of cars = 486 d. Contribution margin = 160-90 = 70 Break-even point in passengers = fixed costs/contribution margin Passengers = 3,150,000 / 70 = 45,000 train cars (rounded) = 45,000 / (90*0.7) = 45,000/63 = 715 The new break-even point in passengers = 45,000 The new break-even point in # of cars = 715 e. Before tax profit less the tax rate times the before tax profit = after-tax income = Contribution Margin = 205 – 85 = 120 Y = before tax profit 750,000 = y - .30y 750,000 = .70y 1,071,429 = y X = # of
The equal probability of the copier breaking down before or after is the average time between breakdowns. So z^2/36 = 1/2. Solving gives z = 4.243 weeks. The uniform distribution for the number of copies sold per day, standard number of copies sold will be the average of the high and low estimates, which is 5000 copies per day. At 10 cents each, the expected revenue of $500 per day, and the amount will be lost while the copier is broken.
They would make semiannual payments of $12.303 million and can sell the equipment at the end of its 25-year useful life at $40.185 million. If Acela’s revenue expectations are not met and Amtrak remains unprofitable, the present value of the cost of this option would be 260.26 million. Assuming profitable, the present value of the costs would become approximately $164.77 million due to the benefit of the tax shield. Also, Amtrak is considering an 80% debt to 20% equity leveraged-lease structure to finance the locomotives and train sets. They would make semiannual payments and has the option to buy the equipment from the equity investor, BNY Capital
Given the following cash flow stream at the end of each year: Year 1: $4,000 Year 2: $2,000 Year 3: 0 Year 4: -$1,000 Using a 10% discount rate, the present value of this cash flow stream is: a. $4,606 b. $3,415 c. $3,636 d. Other 8. Consider a 10-year annuity that promises to pay out $10,000 per year, given this is an ordinary annuity and that an investor can earn 10% on her money, the future value of this annuity, at the end of 10 years, would be: a. $175,312 b.
Calculate the Cash Discounts for all Merchandise Purchased. a. Wanda’s Wax i. $2,000.00 worth of inventory with terms of 2/10, net 30 EOM - means that if this amount owed is paid on March 10th, (when the Cash Discount ends) the total cost saved is $40.00. Caty’s Candles would only pay $1,960.00 by March 10. b. Scented Oil from Sally’s Scents ii. $800.00 with terms of 1/10, net 40 EOM – means that if this amount owed is paid on March 10th (when the Cash Discount ends) the total cost saved $8.00.