The management at Dime Corporation is investigating purchasing equipment that would increase sales revenues by $527,000 per year and cash operating expenses by $339,800 per year. The equipment would cost $425,000 and have a 10 year life with no salvage value. Dime Corporation uses straight-line depreciation for all fixed assets. The simple rate of return on the investment is closest to (ignore income taxes): A. 44.05% B. 54.05% C. 27.46% D. 34.05%
Answers
Answer:
option (D) : 34.05%
Explanation:
As per the data given in the question,
Computation of Simple rate of return :
Investment = $425,000
Depreciation = (Initial cost - salvage value) ÷ useful life
= ($425,000 - 0) ÷ 10
= $42,500
Net profit = Sales revenue - cash operating expense - Depreciation
= $527,000-$339,800-$42,500
= $144,700
Simple rate of return = Net Profit ÷ Investment
= $144,700 ÷ $425,000
= 34.05%
Hence, option (D) is correct answer
Related Questions
Definition of marketing?
Answers
Answer:
the active business of promoting and selling products or services, including market research and advertising
Which of the following is a factor of production for a firm?
A. Natural Resources
B. Customers
C. Company Reputation
D. Legal Consultants
Answers
Answer:
natural resources
Explanation:
natural resources and legal consulatants
How will the governments aggressive fiscal policy in response to the coronavirus pandemic affect national savings
Answers
Answer:postponed the declaration and payments of income taxes for individuals and enterprises.
Explanation:
Z
Fixed vs variable cost preference. bates operates a kiosk at a local mall, selling duck calls for $30 each. the variable cost to make a duck call is $18. a new mall is opening where bates wants to locate a new kiosk. the mall operator offers the following two options for bates: 1. paying a fixed rent of $15,000 a month, or: 2. paying a fixed rent of $9,000 per month plus 10% of revenue earned from each duck call, the amount of monthly sales (in units) at which bates would be indifferent as to which plan to select is: a) 1,900 b) 2,000 c) 1,500 d) 1,600
Answers
Answer:
b) 2,000
Explanation:
sales price = $30
10% from each sale = $3
the amount of rent paid as a percentage of sales = $15,000 - $9,000 = $6,000
the indifference point in units = $6,000 / 10% revenue margin = $6,000 / $3 = 2,000 units
If Bates sells less than 2,000 units, then he should prefer option 2, but if he sells more than 2,000 units, then option 1 is better for him.
discuss steeps involved in business planing process
Answers
Steps for business planning:
Step 1: Establish your mission. In essence, your mission statement explains why your business exists. ...
Step 2: Analyse your SWOT. ...
Step 3: Develop a plan. ...
Step 4: Create a budget. ...
Step 5: Put it in writing. ...
Step 6: Make it a living document.
Steps for planning
1] Recognizing Need for Action. ...
2] Setting Objectives. ...
3] Developing Premises. ...
4] Identifying Alternatives. ...
5] Examining Alternate Course of Action. ...
6] Selecting the Alternative. ...
7] Formulating Supporting Plan.
Which of the following would be considered residential transactions please select all that apply
Answers
Answer:
is the reduces of an Insurance
Explanation:
there have been several complaint about the increase in the number of teenage hawkers in the street. write a letter to the editor of national newspaper discussing the problem suggesting solution
If I have bought 4 books and 1 pen plus tax each: $12.99, $12.99, $11.99, $7.99, and $3.99. I gave them $60.00. How much money do I get back?
Answers
Your total would be $49.95.
$60 - $49.95
= $10.05
QUESTION 4: PROGRESS REPORT On the 20th of April 2023, The campus manager, Mr Manoto, requested the secretary in the SRC office, to compile a report on the progress of the revival day planning. In your report tasks that are completed are invitations for special guests and booking of live performers; the task committee is still busy with finalizing the design of the banners and T-shirt and sports bottle printing. Due to overspending on budget, you still have not booked catering and security for the day. Your report must be in memo format.
Answers
A sample memo based on the given question prompt is given below:
The MemoMemorandum
To: Mr. Manoto, Campus Manager
From: SRC Office Secretary
Date: April 20th, 2023
Subject: Progress update for Revival Day planning
Esteemed Mr. Manoto,
Please find below a status report detailing advancements made in the preparations of the upcoming Revival Day ceremony. We have accomplished issuing invitations to prominent guests and securing prominent musical acts. Our committees are putting the finishing touches to banner design, T-shirt outfits, as well as customizing sport water bottles.
Conversely, budgetary concerns impede us from booking security or catering caterers essential for event operations. However, we are investigating ways to cut expenses while still delivering quality service. We will be prompt with updates about progress made through these alternative strategies.
Thank you for your kind ownership in this venture; rest assured that our team is steadfastly dedicated to ensuring an excellent Revival Day rally session.
Yours faithfully,
[Your name]
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Noncash investing and financing activities may be disclosed in: Multiple Choice A note in the financial statements or a schedule attached to the statement of cash flows. The operating activities section of the statement of cash flows. The investing activities section of the statement of cash flows. The financing activities section of the statement of cash flows. The reconciliation of cash balance section.
Answers
Answer:
(A note in the financial statements or a schedule attached to the statement of cash flows.
Explanation:
Noncash investing and financing transactions do appear as a separate schedule on the statement of cash flows. They are are notable investing and financing activities that do not affect cash directly. The IFRS and US GAAP mandates companies to disclose all notable or significant non-cash investing and financing activities either at the bottom of the statement of cash flows usually in a form of a footnote or in the notes to the financial statements.
Noncash investing and financing activities may be disclosed in "a note in the financial statements or a schedule attached to the statement of cash flows". The correct option is A.
Noncash investing and financing activities refer to transactions that do not involve the direct use or receipt of cash but have significant financial implications for a company.
This statement of cash flows itself typically segregates cash flow information into three sections: operating activities, investing activities and financing activities.
While the noncash activities are not part of the operating, investing or financing activities sections, they are important to provide a comprehensive view of a company's financial health.
It can be included in a separate note or schedule to ensure transparency and proper understanding by stakeholders.
Therefore, the correct option is A.
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Problem 8, MacroSoft Inc. has capitalized $600,000 of software costs. Sales from this product were $360,000 in the first year. MacroSoft estimates additional revenues of $840,000 over the product’s economic life of 5 years.
Instructions
Prepare the journal entry to record software cost amortization for the first year. Show all computations.
Answers
Journal Entry:
Date: [First year-end date]
The amortization expense for the first year is $120,000.
Debit: Amortization Expense - Software Cost - Year 1 ($600,000 / 5 years) = $120,000Credit: Accumulated Amortization - Software Cost - Year 1 ($600,000 / 5 years) = $120,000Explanation:To record the software cost amortization for the first year, we need to allocate a portion of the capitalized software costs as an expense. Since the software has an estimated economic life of 5 years, we divide the total software cost ($600,000) by 5 to determine the annual amortization expense. In this case, the amortization expense for the first year is $120,000. We debit the Amortization Expense - Software Cost account to recognize the expense and credit the Accumulated Amortization - Software Cost account to accumulate the amortization over time.For more such questions on Journal Entry
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You have a credit card bill from ABC Credit for a total of $3,754. Please group the transactions within the appropriate T-Accounts based on the chart of accounts in your resources section. Within that balance the following transactions are listed:
$420 Office Supplies
$334 Auto (company van payment)
$1500 123 Computers to Go
$250 Electric Company
$100 Water
$150 Good Steak House (company luncheon)
$250 ABC Office Supplies
$100 Fuel Stop
$650 Furniture
Answers
The T-Account can be made as follows with the credit of $3,754. The expenses are deducted from the balance as the total credit available.
What is Expense?Expenses are the costs that are paid by businesses, these costs are incurred for the operations of business. The expenses are paid from the cash/ bank balance available at the business.
It is recommended that the expenses are in a control and are lower than the revenue generated by the business.
T-Account
Operating Expense Account
$420
$250
$100
$250
Petty Expenses Account
$150
$100
Asset Account
$1500
$650
$334
The account are made according to the nature of expenses, there are two expenses that are not to be classified as an expense instead they need to be treated as a capital expenditure that is to be posted in Asset account.
Expenses with one off event and small amount and in general in nature are posted in petty expenses
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The following information is taken from the financial statements of Burton Industries:________.
Total Assets $360,000
Total Liabilities 162,000
Total Stockholders' Equity 198,000
Net Income 126,000
Income Tax Expense 37,800
Interest Expense 9,000
a. 18.2
b. 15.0
c. 4.7
d. 19.2.
Answers
Answer:
d. 19.2
Explanation:
The missing question is "The company's times interest earned ratio is?"
Solution
Interest Earned Ratio = Income before Interest and taxes or EBIT / Interest Expenses
Net Income $126,000
Add: Income taxes $37,800
Add: Interest Expenses $9,000
EBIT $172,800
Hence, Interest Earned Ratio = EBIT / Interest Expenses
Interest Earned Ratio = $172,800 / $9,000
Interest Earned Ratio = 19.2
Suppose an entrepreneur in New Hampshire wanted to expand her supply of maple syrup and maple sugar products to compete with similar businesses in the state. She knows she has to stay within fair market prices, especially since maple products are seasonal. She also wants to appeal to the related economic behavior. How would profit motive impact this entrepreneur’s decisions? Define profit motive and provide at least two examples of the role of profit motive in this type of business.
Answers
Companies can market their goods and services more effectively if they understand that many of their decisions are motivated by profit. A company, for example, may demonstrate how their subscription service can save someone time and money, thereby increasing their overall profit.
What is profit motive?The profit motive is the driving force behind businesses that seek to maximize their profits. The ultimate goal of a business, according to mainstream microeconomic theory, is "to make money" - not in the sense of increasing the firm's stock of means of payment, but in the sense of "increasing net worth." The profit motive is an individual's drive to engage in activities that will result in net economic gain. People are induced to invent, innovate, and take risks that they would not otherwise take because of the profit motive. The profit motive is beneficial in business because it motivates leaders to act. Profit motive influences purchasing and can influence supply and demand.To learn more about profit motive, refer to:
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josh drove to a restaurant and handed his car keys to the valet at the entrance. after dinner, josh learned that the valet accidentally left the car unlocked and the car was stolen. in the context of bailment relationships, the restaurant is most likely
Answers
Unless it can demonstrate that the valet operated with reasonable care, the restaurant is likely to be responsible as a bailee, according to the statement.
Why does a restaurant succeed?Some of the essential aspects of successful restaurants include a strong sense of brand identity, hiring and motivating staff, creating a positive work environment, becoming intimately acquainted with loss and profit statements, developing a menu that is profitable, and acquiring knowledge how to market your strongest dishes.
Why are restaurants crucial?It fosters a sense of community and togetherness. Every town has a few eateries that everyone is familiar with. They are familiar with the location as well as the owners and employees. In some senses, the restaurant is made by the sense of belonging it fosters.
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Step 4: Use the line chart to determine the approximate price of the stock at the beginning of 2003. How much money would you have earned if you bought one share of stock at the beginning of 2003 and sold it at today's current price?
Answers
The amount of money earned with the purchase of one share of stock at the beginning of 2003 and selling it at today's current price is $22.81 ($61.81 - $39).
What is the price of stock?The price of a share of stock is the cost that is paid to buy it or the revenue received when it is sold.
The price of a stock reflects the value that investors place on the issuing company.
Thus, the amount of money earned with the purchase of one share of stock at the beginning of 2003 and selling it at today's current price is $22.81.
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On January 1, 2016, Flathound Properties received $22,800 from a tenant as rent for all of 2016. What journal entry would Flathound Properties make at the end of January 2016 to show that one month of service had been provided?
Answers
In order to show that one month of service has been provided, Flathound Properties should both Debit Deferred Revenue and Credit Revenue for $1,900.
What is the journal entry for a month of service?The $22,800 is for the whole year so we need to find the monthly rent:
= 22,800 / 12
= $1,900
This amount will be credited to Revenue to show that Flathound Properties has earned it for rental services provided. It will also be debited to Deferred Revenue.
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You purchased eight put option contracts with a strike price of $30 and a premium of $1.10. What is the total net amount you will receive for your shares if you exercise this contract when the underlying stock is selling for $26.50 a share
Answers
Answer:
$23120
Explanation:
The computation of the total net amount received is shown below:
Total Premium Paid
= 800 Option × $1.10
= $880
And,
Amount Received is
= 800 Option × $30
= $24000
So, Net Amount Received is
= $24000 - $880
= $23120
Monson sells 29 units for $50 each on December 15. Monson uses a perpetual inventory system. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round your per unit costs to 2 decimal places.)
Answers
The complete question:
Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 29 units for $50 each.
Purchases on December 7 20 units at $20.00 each
Purchases on December 14 34 units at $30.00 each
Purchases on December 21 30 units at $36.00 each
Monson uses a perpetual inventory system. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round your per-unit costs to 2 decimal places.)
Answer:
Trey MonsonDetermination of the cost of Ending Inventory based on the Weighted Average Method:Date Quantity Unit Cost Total Cost
Dec. 7 Purchase 20 $20 $400
Dec. 14 Purchase 34 30 1,020
Total 54 26.30 $1,420 .20
Dec. 15 Sale -29 26.30 -762.70
Dec 15 Balance 25 26.30 $657.50
Dec. 21 Purchase 30 36 1,080
Dec. 21 Available 55 31.59 $1,737.50
Dec. 31 Ending Inventory 55 $31.59 $1,737.50
Explanation:
To use the weighted average method, we divide the cost of goods available for sale by the number of units available for sale, which yields the weighted-average cost per unit. The cost of goods available for sale is the sum of beginning inventory and net purchases.
DESCRIBE THE FUNCTIONS OF
PRELIMINARY DATA GATHERING?
Answers
Preliminary data gathering involves collecting and analyzing relevant information to establish a foundation for research or decision-making, including identifying objectives, assessing data availability, etc.
What are the Functions of Preliminary Data Gathering?Preliminary data gathering encompasses the initial acquisition and evaluation of pertinent information, serving as a basis for research or decision-making. It aids in defining project scope, goals, and needs, while also assessing data availability and quality.
This stage assists researchers and decision-makers in gaining insights, assessing project feasibility, recognizing potential obstacles, and formulating a strategic plan for subsequent data collection and analysis.
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A preparation outline is used to help organize the speaker's thoughts, ideas, and information. What is the purpose of a presentation outline? Question 14 options:
a. A presentation outline is used to provide copies of the speech to each member of the audience.
b. A presentation outline is used to present only the key points of a speech.
c. A presentation outline helps the speaker remember what to say during his or her speech.
d. A presentation outline is used to explore different patterns of organization.
Answers
The purpose of a presentation outline is to help the speaker organize and structure their speech in a clear and logical manner.The outline can also be used to help the speaker remember what they want to say during the presentation, allowing them to focus on delivering the content effectively without worrying about forgetting important details. The correct option is c.
The outline provides a framework for the content that will be presented, ensuring that all important points are covered and that the content is loaded with relevant information. Additionally, a presentation outline can be helpful for the audience as well, providing them with a clear roadmap of what to expect during the presentation and allowing them to follow along with ease.
While it may not be necessary to provide copies of the outline to each member of the audience, having a clear and organized presentation can make a big difference in how well the content is received and understood. Overall, a well-prepared presentation outline is an important tool for any speaker looking to deliver a successful and engaging presentation. The correct option is c.
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Has anybody took financial literacy on edmentum? Please reply to this.
Answers
What is task performance leader ship?
Answers
The task-relationship model is defined by Forsyth as "a descriptive model of leadership which maintains that most leadership behaviors can be classified as performance maintenance or relationship maintenances." Task-oriented (or task-focused) leadership is a behavioral approach in which the leader focuses
A crab fisherman goes out to sea for weeks at a time catches as many crabs as possible and sells the crabs to larger distributors what field of business activity does this fall under
Answers
A crab fisherman goes out to sea for weeks at a time catches as many crabs as possible and sells the crabs to larger distributors .commercial industry field of business activity falls under this category.
Geographically, oceans are smaller than oceans and are usually found where land and ocean meet. Part of the ocean is usually surrounded by land. The sea is located at the edge of the sea and is partially surrounded by land.
The terms "sea" and "ocean" are often confused when talking about the sea. The ocean is usually considered a smaller body of water, partially covered by land. This often marks where the sea and land meet. Oceans generally refer to vast bodies of salty water that cover most of the earth.
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1. Assume two countries (Portugal & Britain) each produce wine and cloth. Given the following details with respect to resources required to produce each good in each country, answer the following questions. b. a. What is the opportunity cost of producing each good in each country? (4 Points) Draw the Production Possibilities Frontier for each country assuming no trade and 500,000 labor hours (use wine as the x-good). (10 Points) Provide an interpretation of the slope of the PPF in this example (8 Points) If these countries engaged in international trade, in what range would the relative prices have to be to ensure mutually beneficial trade, and which good would each country specialize in? (10 Points) e. Assuming the relative price with trade of wine is 0.67 cloth and the relative price of cloth is 1.48 wine, calculate the gains from trade and show on the PPFs the expanded consumption choices for each country. (16 Points) c. d. Country Production (1 Hour of Labor Time) Cloth Wine Portugal 2.85 Britain 3.4 5.3 4.2
Answers
a. The opportunity cost of producing wine in Portugal is 0.35 units of cloth, and the opportunity cost of producing cloth in Portugal is 2.85 units of wine.
b. The slope of the PPF represents the opportunity cost of producing one good in terms of the other. In this case, the slope of Portugal's PPF is -0.35, and the slope of Britain's PPF is -0.71.
c. If these countries engaged in international trade, the relative prices of wine and cloth would have to be within the range of Portugal's opportunity cost of producing wine (0.35 units of cloth) and Britain's opportunity cost of producing wine (0.71 units of cloth).
d. Assuming the relative price with trade of wine is 0.67 cloth and the relative price of cloth is 1.48 wine, then Portugal would specialize in producing wine and Britain would specialize in producing cloth. Portugal would export wine and import cloth, and Britain would export cloth and import wine.
How to explain the informationIf the relative price of wine were below 0.35 units of cloth, then Portugal would be able to produce wine more cheaply than Britain, and it would not be in Portugal's interest to trade. If the relative price of wine were above 0.71 units of cloth, then Britain would be able to produce wine more cheaply than Portugal, and it would not be in Britain's interest to trade.
The gains from trade are the increase in consumption that countries experience after they specialize and trade. In this case, the gains from trade are represented by the shaded area in the graph. The gains from trade are a result of the increased efficiency that is possible when countries specialize in the production of goods that they have a comparative advantage in.
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1. Explain your understanding of management.
Answers
Answer: Management means directing and controlling a group of people or an organization to reach a goal. Management often means the deployment and manipulation of human resources, financial resources, technological resources, and natural resources.
Hope it helped! if it did please mark me brainliest!!
tysm
Answer:
For me, there are two different meanings for the word management, it is either:
1. it is the process of dealing with or controlling things or people.
OR
2. it is the administration of an organization, whether it is a business, a non-profit organization, or a government body.
Select the best answer for the question.
4. One component of the agreeableness trait is altruism. Altruism means
O A. the need for personal success and to see others fail.
O B. the desire to help others, or the concern for the welfare of others.
O C. the ability to take and give criticism.
O D. poor self-confidence.
Answers
One component of the agreeableness trait is altruism. Altruism means the desire to help others, or the concern for the welfare of others. The correct option is (B).
What do you mean by an agreeableness?Trust, frankness, benevolence, compliance, humility, and tender-mindedness are the lower-level characteristics or aspects that makeup agreeableness.
Altruism is characterized by selflessness and care for the well-being of others. Although someone can overdo charity to the detriment of their own personal well-being, this is a commendable attribute.
Therefore, one component of the agreeableness trait is altruism. Altruism means the desire to help others, or the concern for the welfare of others.
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The financial statement effects of the payment of a cash dividend (on the date of payment for a previously declared dividend) include:_________.
Answers
Answer:
The financial statement effects of the payment of a cash dividend (on the date of payment for a previously declared dividend) include:_________.
a. Cash (Current Asset) is decreased.
b. Dividends Payable (Current Liability) is decreased.
Explanation:
The journal entry debits the Dividends Payable account and credits the Cash account. This reduces the dividends payable and the cash accounts respectively by the same amount. Therefore, current assets and current liabilities are decreased. The effects of the cash payment are on the Balance Sheet and Statement of Cash Flows only.
How are state Insurance Guaranty Associations funded?
Answers
Every state has a guarantee fund that is created by legislation. To safeguard policyholders in the event that an insurer goes bankrupt or is unable to pay its debts, a state's insurance commissioner maintains guarantee funds.
It is possible for a borrower to approach a bank for a loan since a guarantee fund offers a loan or credit guarantee. When a borrower lacks adequate security, such as real estate or other assets, guarantees can be quite helpful. The lack of (enough) collateral is practically universal among small borrowers. Guarantee insurance entails that an insurance firm, rather than a bank, provides a guarantee to your business.
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demarco and tanya have received information about the separate mortgage offers. In two or three paragraphs describe your recommendation for the best financial choice in their situation.
Answers
There are a few fundamental elements to be kept in mind when assessing potential mortgage offers, which include:
How to make the recommendationInterest rate: This is one of the key components to ponder upon when evaluating different mortgages. A lower interest rate entails smaller monthly payments as well as a decrease in sum spent on interest overall during the duration of the loan.
Loan term: The length of the loan is another aspect that should not go unnoticed. When opting for a briefer loan, more money will be spent towards monthly payments but correspondingly less towards interest. However, if you desire a longer period, then the opposite is true with fewer monthly payments but expenditure on interest increases.
Closing costs: It is essential to take closing fees into consideration since they can end up reaching staggering heights. Closing costs refer to every single amount related to taking out a mortgage and ought to be given due thought before deciding on an offer.
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Compute the future value of $1,640 compounded annually for:
a) 10 years at 5 percent.
b) 10 years at 10 percent.
c) 20 years at 5 percent.
d) Why is the interest earned in part (c) not twice the amount earned in part (a)?
Answers
If the present value is $1,640. The future value are: $2,671.39, $4,253.74, $4,351.41. The reason the interest rate in part c not twice the amount earn part a is : the interest is compounded.
How to find the future value?Using formula to find the future value
FV = PV×(1+r)^t
Where:
FV = Future value
PV= Present value
r = rate
t = time
Let plug in the formula
a. 10 years at 5 percent
FV = $1,640 (1+0.05)^10
FV = $1,640 (1.6288946)
FV = $2,671.39
b. 10 years at 10 percent
FV = $1,640 (1+0.10)^10
FV = $1,640 (2.593742)
FV = $4,253.74
c. 20 years at 5 percent
FV = $1,640 (1+0.05)^20
FV = $1,640 (1.6288946)
FV = $4,351.41
d. The reason why the interest rate in part c not twice the amount earn part a is because the interest is compounded.
Therefore the future value are: $2,671.39, $4,253.74, $4,351.41.
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