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2 years ago

What are the disadvantages of choosing the lease? Check all that apply.

Business

2 answers:

Dmitriy789 [7]2 years ago

6 0

1,2, and 5 are the answers

Lelechka [254]2 years ago

4 0

Answer:A,B,E-1,2,5

Explanation:

a.I have enough saved for the down payment.

b.There are no mileage restrictions.

c.The price of the car is less.

d.The monthly payment is less.

e.I will own the car in five years.

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Pottery Crane Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of ca

harkovskaia [24]

Answer: See explanation

Explanation:

a. Direct material = 4 × 33300 = Make $133200 ; Net income increase

Direct labor = 5 × 33300 = Make $166500 ; Net income increase

Variable costing= 0.61 × $166500 = Make $101565 ; Net income increase

Fixed manufacturing = Make 43100 ; Buy 43100 ;

Purchase price = 13.16 × 33300 = Buy $438228 ; Net income decrease

Total annual cost:

Make: $444365

Buy: $481328

Net income decrease = $36963

b. No, Pottery Ranch should not buy the finials. There's an incremental cost of $36963.

c. Incremental revenue = $50,367

Incremental cost = $36963

Incremental revenue = $50367 - $36963 = $13404

In this case, it should be bought.

5 0

2 years ago

Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below: Sales $ 670,000

Marina86 [1]

Answer:

a. According to the company's accounting system, what is the net operating income earned by product D14E? (Net losses should be indicated by a minus sign.)

net loss -$65,000

b. What would be the financial advantage (disadvantage) of dropping product D14E? Should the product be dropped?

financial disadvantage of discontinuing the produce is -$68,000, so the company should not discontinue the product since its losses would increase

Explanation:

total sales $670,000

- variable expenses $295,000

- fixed manufacturing expenses $246,000

- fixed selling and administrative expenses $194,000

net loss = $65,000

if product D14E is discontinued, $196,000 + $111,000 = $307,000, of fixed expenses can be avoided, but $133,000 are not avoidable. if the company discontinues the product, its losses will increase by $133,000 - $65,000 = $68,000

3 0

2 years ago

Peter's Audio has a yield to maturity on its debt of 7.8 percent, a cost of equity of 12.4 percent, and a cost of preferred stoc

OleMash [197]

Answer:

= 9.5%

Explanation:

The weighted average cost of capital can be computed as follows:

After tax cost of debt :

= Before-tax cost of debt (1-T)

= 7.8% × (1-0.21)

= 6%

Market value

Equity = 105× 22= 2,310.00

Preferred stock = 25× 45= 1,125.00

Bonds= 98% × 1500=1,470.00

Type cost Market value Cost × equity

Equity 12.4 2,310.00 286.44

Preferred stock 8% 1,125.00 90.00

Bond 6% 1,470.00 1 90.58

4,905.00 467.02

WACC = (467.02/4,905.00 ) × 100

= 9.5%

8 0

2 years ago

Population momentum is primarily dependent on the number of individuals in that population who are:

Daniel [21]

The large number of the population in childbearing age

7 0

2 years ago

Here is the income statement for Larkspur, Inc.

adoni [48]

Answer:

a. The Earnings per share is $3.87

b. The Price-earnings ratio is 3.87 times

c. The Payout ratio is 12.21%

d. The Times interest earned is 10.32

Explanation:

a. The Earnings per share would be calculated as follows:

Earnings per share = (Net income – Preferred stock dividend)/Average number of common shares outstanding

We need to use the formula of the Weighted Average number of common shares outstanding to calculate the Preferred stock dividend.

Therefore, Weighted Average number of common shares outstanding = (Number of common shares outstanding in the beginning + Number of common shares outstanding in the end)/2

= (27,600 + 36,700)/2

= 32,150

Preferred stock dividend = $6,700

Therefore, Earnings per share= (131,100 – 6,700)/32,150

= 124,400/42,150

= $3.87

b. The Price-earnings ratio would be calculated as follows:

Price - earning ratio = Market price per share / Earning per share

= $15 / $3.87 = 3.87 times

c. The Payout ratio would be calculated as follows:

Payout ratio = (Total cash dividends - Preferred stock dividends) / Net income

= ($22,700 - $6,700) / $131,000 = 12.21 %

d. Times interest earned would be calculated as follows:

Times interest earned = (Net income + Interest expense + Tax expense)/Interest expense

= (131,100 + 16,700 + 24,600)/16,700

= 10.32 times

5 0

2 years ago