Does Joe have enough in savings to pay for the down payment and all of the closing costs? Solution Plan: Complete the following questions based upon the information in the video and other information provided in the worksheet. 1. Joe figures that with overtime he will average 40 hours a week for 52 weeks a year. If his current wage is $15.00 per hour, how much will he make per year?15*40*52= $31,200.00 annually 2.
Basic flexible budgeting Centron, Inc., has the following budgeted production costs: |Direct materials |$0.40 per unit | |Direct labor |1.80 per unit | |Variable factory overhead |2.20 per unit | |Fixed factory overhead | |Supervision |$24,000 | |Maintenance |18,000 | |Other |12,000 | The company normally manufactures between 20,000 and 25,000 units each quarter. Should output exceed 25,000 units, maintenance and other fixed costs are expected to increase by $6,000 and $4,500,
In year 2 it reports a $40,000 loss. For year 3, it reports taxable income from operations of $100,000 before any loss carryovers. Using the corporate tax rate table, determine how much tax Willow Corp. will pay for year 3. Answer: $4,500. Description (1) Year 3 taxable income $100,000 (2) Year 1 NOL carryforward ($30,000) (3) Year 2 NOL carryforward ($40,000) (4) Taxable income reported 30,000 (1) - (2) -
ANSWERS TO EXAM I Part I. A worker in Norway can produce a yield of 10 tons of fish per day and 5 tons of aluminum per day. A worker in India can produce 4 tons of fish per day and 1 ton of aluminum per day. Assume the worker can produce goods five days/week. a.
Week 3 Problem Set Answer the following questions and solve the following problems in the space provided. When you are done, save the file in the format flastname_Week_3_Problem_Set.docx, where flastname is your first initial and you last name, and submit it to the appropriate dropbox. Chapter 7 (pages 225–228): 1. Your brother wants to borrow $10,000 from you. He has offered to pay you back $12,000 in a year.
|$1,200 gain and $180 tax. | The gain realized is $500 (100 shares x $20) less basis (100 shares x $15 exercise price). The tax is calculated as follows: $500 x 15% (preferential rate). Bad Brad received 20 NQOs (each option gives him the right to purchase 30 shares of stock for $10 per share) from his employer. At the time he started working the stock price was $11 per share.
Next is the number of pumps one employee can produce in one month. Which is, 771/25 (number of pumps for one employee a month, the company would need a total of 30.8 workers, or 31 (rounding up). After this information is gathered, these are the possible results: • We need to hire 11 more employees (there are now 20, and we need 31) • In the case reading, it is shown that there are up front cost of $1100 this is found the $100.00 hiring cost, multiplied by the 11 new employees. • Monthly production ----- 775 (31 workers x 25 pumps per worker) • The end of month inventory will be figured as 1 will be 225 >>>> this is the production of 775 (+) existing inventory of 50 = 825, then (-) the production of 600. Month 1 2 3 4 5 6 Demand 600 750 1000 850 750 700 Production 775 775 775 775 775
(4 points) Problem 5: George Heinrich uses 1,500 per year of a certain subassembly that has an annual holding cost of $45 per unit. Each order placed costs George $150. He operates 300 days per year and has found that an order must be placed with his supplier 6 working days before he can expect to receive that order. For this subassembly, find: a) Economic order quantity. b) Annual holding cost.
Capital Budgeting Case Virginia Sacco University of Phoenix Quantitative Reasoning for Business QRB 501 Li Guohong March 10, 2014 Capital Budgeting Case My company is contemplating to acquire another corporation, “Corporation A” or “Corporation B” on a $250,000 budget. Corporation A: Revenues = $100,000 in year one, increasing by 10% each year. Expenses = $20,000 in year one, increasing by 15% each year/ Depreciation expense = $5,000 each year. Tax rate = 25%. Discount rate = 10%.
1. What is the firm average collection period? Average collection formula: (Gapenski, 2008 pg.536) 30% pay on the 10 and take discount 40% pay on the 30 30% pay average 40 ACP = (0.3 x 10 days) + (0.4 x 30 days) + (0.3 x 40 days) 3 + 12 + 12 = 27 days 2. Calculate the firm’s current receivables balance Receivables balance = ADB x ACP, where ADB = Average Daily Billing. I got the ADB dividing the Gross sales by the 360 days: $1,200.000 / 360 = $3,333.33 Receivables balance = $3,333.33 x 27 = $89,999.91 3.