Share
Explore BrainMass

# Business Math

### Flexible budget amounts

The following costs appear in Malgorzata Company's flexible budget at an activity level of 15,000 machine hours: Total Cost Indirect materials: \$7,800 Factory rent: \$18,000 What would be the flexible budget amounts at an activity level of 12,000 machine hours if indirect materials is a variable cost a

### Cost accounting

Question 1 Jordan Company produced 150,000 floor lamps during the past calendar year. Jordan had 2,500 floor lamps in finished goods inventory at the beginning of the year. At the end of the year, there were 11,500 floor lamps in finished goods inventory. The lamps sell for \$50 each. Jordan's accounting records provide the fol

### Pitkins Company

Pitkins Company collects 20% of a month's sales in the month of sale, 70% in the month following the sale, and 6% in the second month following sale. The remainder is uncollectible. Budgeted sales for the next four months are: January February March April Budgeted Sales \$200,000 \$300,000 \$350,000 \$250,000

### Minorca Manufacturing Corporation

The following information relates to Minorca Manufacturing Corporation for next quarter: January February March Expected sales (in units) 440,000 390,000 400,000 Desired ending finished goods inventory (in units) 28,000 30,000 35,000 How many units should Minorca plan on producing for the month of February?

### Business Assets : Depreciation Schedule

II. You are asked to make a depreciation schedule for a business asset. A depreciation schedule shows the remaining value of the asset at the end of each time period. Create a depreciation schedule for each of the following 1. A copy machine that costs \$1,800, shipping \$50 and installed for \$125 depreciated using the stra

### Capital Structure and Dividend Policy

Which of the following should not influence a firm's dividend policy decision? The firm's ability to accelerate or delay investment projects, A strong preference by most shareholders in the economy for current cash income versus capital gains, constraints imposed by the firm's bond indenture, the fact that much of the firm's

### How do you calculate the new price of a share after a stock split?

Rooney Inc. recently completed a 3-for-2 stock split. Prior to the split, its stock price was \$90 per share. The firm's total market value was unchanged by the split. What was the price of the company's stock following the stock split?

### Capital Structure and Dividend Policy : Target Structure

The firm's target structure is consistent with which of the following? Maximum earnings per share (EPS), Minimum cost of debt (rd), Highest bond rating, Minimum cost of equity (rs), or Minimum weight average cost of capital (WACC).

### Capital Structure and Dividend Policy

Millman Electronics will produce 60,000 stereos next year. Variable costs will equal 50% of sales, while fixed costs will total \$120,000. At what price must each stereo be sold for the company to achieve an EBIT of \$95,000?

### Bonds / Interest Expense

1. The issuance price of a bond does not depend on the a. face value of the bond. b. riskiness of the bond. c. method used to amortize the bond discount or premium. d. effective interest rate. 2. Which of the following is true of a premium on bonds payable? a. It is a contra-stockholders' equity account. b. It

### Probability

Consider the following contingency table: Under 20 21-30 31-40 Male 12 12 17 Female 13 16 21 a. If one person is selected at random, what is the probability that person is Female? ______ b. If one person is selected at random, what is the probability that person is ei

### Swanson Inc. purchased \$400,000 of Malone Corp. ten-year bonds with a stated interest rate of 8 percent payable quarterly. At the time the bonds were purchased, the market interest rate was 12 percent. Determine the amount of premium or discount on the purchase of the bonds.

Swanson Inc. purchased \$400,000 of Malone Corp. ten-year bonds with a stated interest rate of 8 percent payable quarterly. At the time the bonds were purchased, the market interest rate was 12 percent. Determine the amount of premium or discount on the purchase of the bonds. a. \$92,442 premium b. \$92,442 discount c. \$81,1

### Interest Income and Investors

On January 1, 2006, an investor paid \$291,000 for bonds with a face amount of \$300,000. The contract rate of interest is 8% while the current market rate of interest is 10%. Using the effective interest method, how much interest income is recognized by the investor in 2006 (assume annual interest payments and amortization)?

### Dividing Items Equally Between Three People

Thirty flasks, 10 full, 10 half empty and 10 entirely empty, are to be divided among 3 sons so that flasks and content should be shared equally. How may this be done without pouring from one flask to another?

### You must evaluate a proposal to buy a new milling machine. The base price is \$108,000, and shipping and installation costs would add another \$12,500.

You must evaluate a proposal to buy a new milling machine. The base price is \$108,000, and shipping and installation costs would add another \$12,500. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for \$65,000. The applicable depreciation rates are 33, 45, 15 and 7 percent. The machine would

### Statistics: airline passenger comfort population mean

1. Passenger comfort is influenced by the amount of pressurization in the airline cabin. Higher pressurization permits a closer-to-normal environment and a more relaxed flight. A study by an airline user group recorded the corresponding air pressure on 30 randomly chosen flights. The study revealed a mean equivalent pressure of

### Statistical terms: Match the terms to the definitions

Match the letter of the term to the definition of that term. Definitions 1. The average of the squared deviation scores from a distribution mean. ____ 2. Midpoint in the distribution of numbers. ____ 3. It has to do with the accuracy and precision of a measurement procedure. ____ 4. Examines if an observed causal rela

### Statistical Symbols: Match the symbols to the explanation

Symbols Definitions 1. S (Uppercase Sigma) ____ a. Null hypothesis 2. m (Mu) ____ b. Summation 3. s (Lowercase Sigma) ____ c. Factorial 4. p (Pi) ____ d. Nonparametric hypothesis test 5. e (Epsilon) ____ e. Population standar

### Mathematics - Compound Interest

Burger and more business is worth 250,000. it is expected to grow at 12% per year compounded annually for the next 5 years. Find the expected future value. If funds from the sale of the business today would be placed in an account yielding 6% compounded semiannually, what would be the minimum acceptable price for Burger and

### Cost of Capital : Equity

The earnings, dividends, and common stock price of Carpetto Technologies Inc. are expected to grow at 7 percent per year in the future. Carpetto's common stock sells for \$23 per share, its last dividend was \$2.00, and it will pay a dividend of \$2.14 at the end of the current year. Assuming you have equal confidence in the outp

### The earnings, dividends, and common stock price of Carpetto Technologies Inc. are expected to grow at 7 percent per year in the future.

The earnings, dividends, and common stock price of Carpetto Technologies Inc. are expected to grow at 7 percent per year in the future. Carpetto's common stock sells for \$23 per share, its last dividend was \$2.00, and it will pay a dividend of \$2.14 at the end of the current year. Using the DCF approach, what is the cost of co

### Percy's cost of common equity

Percy Motors has a target capital structure of 40 percent debt and 60 percent common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 9 percent, and its tax rate is 40 percent. Percy's CFO estimates that the company's WACC is 9.96 percent. What is Percy's cost of common equity?

### The Nunnally Company has equal amounts of low-risk, and high-risk projects. Nunnally estimates that is overall WACC is 12%.

The Nunnally Company has equal amounts of low-risk, and high-risk projects. Nunnally estimates that is overall WACC is 12%. The CFO believes that this is the correct WACC for the company's average-risk projects, but that a lower rate should be used for lower risk projects and higher rate for higher risk projects. However, the

### Tapley Inc. recently hired you as a consultant to estimate the company's WACC.

Tapley Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following information. (1) Tapley's bonds mature in 25 years, have a 7.5% annual coupon, a par value of \$1,000, and a market price of \$936.49. (2) The company's tax rate is 40%. (3) The risk-free rate is 6.0%, the market risk

### Sell or Process Further

Please see attached document. Solex Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total \$100,000 per year. The company allocates these costs to the joint products on the basis of their total sales value of the split-off point. These sa

### Common Stock : Dividend Revenue

Zwick Company bought 28,000 shares of the voting common stock of Handy Corporation in January 2006. In December, Hardy announced \$200,000 net income for 2006 and declared and paid a cash dividend of \$2 per share on the 200,000 shares of outstanding common stock. Zwick Company's dividend revenue from Handy Corporation in December

### Hobson Company bought the securities listed below during 2005. These securities were classified as trading securities. On its December 31, 2005, income statement Hobson reported a net unrealized loss of \$13,000 on these securities.

Hobson Company bought the securities listed below during 2005. These securities were classified as trading securities. On its December 31, 2005, income statement Hobson reported a net unrealized loss of \$13,000 on these securities. Pertinent data at the end of December 2006 are as follows: Security Cost Fair Va

### Equity Securities : Expressing Losses

Boulter, Inc. began business on January 1, 2006. At the end of December 2006, Boulter had the following investments in equity securities: Trading Available for Sale Cost 60,000 110,000 Market Value 54,000 107,500 All declines

### Standard Cost System

Please see attached file. Mosbach Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Variable overhead cost per direct labor-hour \$3.50 Total fixed overhead

### Computing ABC Product Costs

Please see attached document. Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours Annual Per Unit Production Rims...... 0.40 20,000 units Posts...... 0.20 80,000 units Additional information about the company follows: a) R