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2 years ago

15

Demand for plumbing services for the last 3 years, from furthest past to most recent, was $44 million, $42 million, and $38 mill

ion. A graph of this trend would have a slope that is:

1 answer:

Yanka [14]2 years ago

7 0

Downward sloping because demand is declining

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Regression analysis models helped Avon realize that employee benefits and the appointment fee that representatives pay for mater

12345 [234]

Answer:

False

Explanation:

Correlation tells you if there is association between two or more variables. Regression analysis model allow you to predict one variable from the other.

7 0

2 years ago

Great Adventures Problem

andrew11 [14]

Answer and Explanation:

The Journal entry is shown below:-

Amount should be capitalized for new vehicle = Cost + Painting and new logo cost + Deluxe Roof rack and trailer hitch

= $15,600 + $6,600 + $2,900

= $25,100

We took the cost of painting and deluxe roof and trailer hitch costs into account as they are supposed to increase the vehicle's future benefits.

Depreciation = (Cost - Salvage Value) ÷ Number of Years

= ($25,100 - $6,300) ÷ 5

= $3,760 per year

In the year 2022 vehicle is used only for 6 months (July to Dec), depreciation expense for the year ended December 31, 2022 is

= $3,760 × 6 ÷ 12

= $1,880

So, the Journal entry is

Depreciation expense Dr, $1,880

To Accumulated Depreciation $1,880

(Being depreciation provided for the year 2022 is recorded)

Therefore for recording the depreciation provided for the year 2022 we simply debited the depreciation expenses while we credited the accumulated depreciation.

3 0

2 years ago

Abby and jason are building a new house. they obtained a construction loan of $100,000, which will be rolled over into a convent

ivann1987 [24]

Answer:

the initial principal balance is $100,000, but it will gain 2% simple monthly interest during 16 months = $100,000 + ($100,000 x 2% x 16) = $132,000

the mortgage loan's principal = $132,000

APR = 12%

n = 30 years or 360 monthly payments

1) using a loan calculator we can determine that the monthly mortgage payment (only principal + interest) = $1,357.77

2) since they will make 360 monthly payments, they will pay in total = $1,357.77 x 360 = $488,796.71

in total they will pay $$356,796.71 in interest

3 0

2 years ago

The director for S Corp. manufacturers of playground equipment, is considering a plan to expand production facilities in order t

Serggg [28]

Answer:

a. The company should not undertake the expansion because the WACC is lower than the desired rate of return of the company

b. Cost of Bonds

Year Cashflow [email protected]% PV [email protected]% PV

$ $ $

0 (804) 1 (804) 1 (804)

1-25 55.3 9.0770 501.96 14.0939 779.39

25 1,000 0.0923 92.3 0.2953 295.3

NPV (209.74) NPV 270.69

Kd = LR + NPV1/NPV1+NPV2 x (HR – LR)

Kd = 5 + 270.69/270.69 + 209.74 x (10 – 5)

Kd = 5 + 270.69/480.43 x 5

Kd = 7.82%

c. Ke = D1/Po + g

Ke = $2 /$40 + 0.06

Ke = 0.05 + 0.06

Ke = 0.11 = 11%

d. WACC = Ke(E/V) + Kd(D/V)

WACC = 11(100/180) + 7.82(80/180)

WACC = 6.11 + 3.48

WACC = 9.59%

Explanation:

FIrst and foremost, we need to calculate cost of bond using internal rate of return formula. The current market price of the bond will be considered in year o. The cash inflows for year 1 to year 25 is the after tax coupon which is calculated using the formula R(1 -T). The coupon is 7% of N1,000 par value, which is $70. Then we will subject it to tax ie $70(1-0.21) = $55.3. The cashflow for year 25 is the par value. Then, we will discount the cashflows in order to obtain cost of bond.

Cost of equity is equal to dividend in year 1 divided by the current market price plus growth rate.

WACC is the proportion of each stock in the capital structure multiplied by cost of each stock.

Market value of the company = 80 + 100 = 180 since debt-equity ratio is 0.8 (80/100). Debt is 80 while equity is 100.

Since WACC is 9.59% and the desired return of the company is 11%. Thus, we will not undertake the expansion.

8 0

2 years ago

Q 2.29: During its most recent period, Raymond Manufacturing expected Job No. 59 to cost $600,000 of overhead, $1,000,000 of mat

beks73 [17]

Answer:

$70,000 overapplied

Explanation:

Raymond manufacturing expected job No 59 to cost $600,000 of overhead , $1,000,000 materials and $400,000 labour

The actual production cost is $590,000

$1,140,000 worth of materials were used and $440,000 labour cost

The first step is to calculate the overhead rate

= expected overhead /expected cost of labor

= $600,000/$400,000

= 1.5

The overhead applied can be calculated as follows

= overhead rate× real cost of labor

= 1.5 × $440,000

= $660,000

Therefore the over applied or underapplied can be calculated as follows

= $660,000-$590,000

= $70,000

Hence the overapplied is $70,000

3 0

2 years ago