Answer:
Explanation:
The adjusting entries are shown below:
1. Wages Expense A/c Dr $2,580 ($645 × 4 days)
To Wages Payable A/c $2,580
(Being wages are adjusted)
2. Depreciation expense A/c Dr $39,600
To Accumulated depreciation $39,600
(Being depreciation expense is adjusted)
3. Office supplies expense A/c Dr $3,120 ($3,755 - $635)
To Office supplies A/c $3,120
(Being office supplies is adjusted)
Answer:
The option that maximizes Maggie's taste index is 1 snack bar and 2 ice creams
Explanation:
<u>snack bar</u> <u>ice cream</u>
37 grams 65 grams
120 calories 160 calories
5 grams of fat 10 grams of fat
Maggie wants to consume up to 450 calories and 25 grams of fat, but she needs at least 120 grams of dessert per day. Ice cream taste 95, snack bars 85.
- maximize taste index = [85(37X) + 95(65Y)] / (37X + 65Y)
- 5X + 10Y ≤ 25 ⇒ CONSTRAINT 1
- 120X + 160Y ≤ 450 ⇒ CONSTRAINT 2
- 37X + 65Y ≥ 120 ⇒ CONSTRAINT 3
- X ≥ 0 ⇒ CONSTRAINT 4
- Y ≥ 0 ⇒ CONSTRAINT 5
maximum possible combinations following constraint 1, 4 AND 5:
- option 1: 1 snack bar - 2 ice creams (5 + 20 = 25)
- option 2: 2 snack bars - 1 ice cream (10 + 10 = 20)
- option 3: 3 snack bars - 1 ice cream (15 + 10 = 25)
possible combinations following constraint 2:
- option 1: 1 snack bar - 2 ice creams (120 + 320 = 440)
- option 2: 2 snack bars - 1 ice cream (240 + 160 = 400)
possible combination following constraint 3:
- option 1: 1 snack bar - 2 ice creams (37 + 130 = 167)
- option 2: 2 snack bars - 1 ice cream (74 + 65 = 139)
since we only have two possibilities, we can calculate which one generates the highest taste index
maximize taste index = [85(37X) + 95(65Y)] / (37X + 65Y)
- option 1: 1 snack bar - 2 ice creams = [85(37) + 95(130)] / (37 + 130) = (3,145 + 12,350) / 167 = 92.78
- option 2: 2 snack bars - 1 ice cream = [85(74) + 95(65)] / (74 + 65) = (6,290 + 6,175) / 139 = 89.68
Explanation:
The calculation is shown below:
a. The proceeds from the short sale (net of commission) is
= Number of shares short sold x (price of short sale - commission paid per share)
= 100 shares x ($27.70 - 0.25)
= $2,745
b. The dividend payment is
= Number of shares × dividend per share
= 100 shares × $3.30
= $330
c. Value of an account is
= Proceeds from short sale, commission net - dividend paid - cost including commission
where,
Cost including commission is
= Number of shares short sold x (price of buying stock + commission paid per share)
= 100 shares × ($22 + 0.25)
= $2,225
So, the value of an account is
= $2,745 - $330 - $2,225
= $190
Answer:
The present value of terminal value is $ 863,689.48
Explanation:
Terminal value=Cash flows at third year*(1+g)/WACC-g
cash flows at the third year is $64,000
g is the growth rate of net cash flows which is 2% in perpetuity
WACC is 8%
Terminal value=$64,000*(1+2%)/(8%-2%)
=$64000*1.02/0.06
=$ 1,088,000.00
The present value of terminal=terminal value*discount factor in year 3
discount factor in year=1/(1+8%)^3=0.793832241
Present value of terminal cash flow=1,088,000.00 *0.79383224
=$ 863,689.48
