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Customer Question

Will you be available for a couple hours today?

Submitted: 439 days and 5 hours ago.
Category: Finance
Value: $16
Status: CLOSED
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Expert:  BusinessTutor replied 439 days and 5 hours ago.

Yes :)

 

Do you have a timed assignment?

Customer replied 439 days and 5 hours ago.

Yes...Assigment has 4 hours to be completed, but there are 50 questions...Would would be able to help today?

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Expert:  BusinessTutor replied 439 days and 5 hours ago.

Yes, you can post your questions, but please note that the amount offered is too low for this number of questions, so please make me an offer (You can add the difference as a bonus)

 

Thank you

Customer replied 439 days and 5 hours ago.

$16 you're asking + $64 bonus= $80 total...is that ok?

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Expert:  BusinessTutor replied 439 days and 5 hours ago.

ok :)

 

Deal

 

It would be better if you upload the file with the questions to www.mediafire.com or www.box.com , this way data would be better formatted.

 

Regards,

Customer replied 439 days and 5 hours ago.

Question 1

  1. Most service departments, such as machine maintenance and janitorial services, are examples of
    Answer
    A.
    transfer centers.
    B.
    cost centers.
    C.
    investment centers.
    D.
    profit centers.

2 points

Question 2

  1. Rascal Company had sales of $650,000 and income (NOPAT) of $78,000. What is the company's profit margin?
    Answer
    A.
    8.0%
    B.
    12.0%
    C.
    7.4%
    D.
    8.3%

2 points

Question 3

  1. Evaluating segments based on the segment's return on investment will:
    Answer
    A.
    encourage managers to select only projects above the current return on investment of the highest segment in the company.
    B.
    encourage each segment's manager to select only projects that are above the company's current return on investment.
    C.
    encourage each segment's manager to select only projects above the company's required rate of return.
    D.
    encourage each segment's manager to only select projects that are above the individual segment's current return on investment.

2 points

Question 4

  1. A transfer price is the price that is used to value transfers of goods and services
    Answer
    A.
    from a subunit of the company to a wholesaler or retailer.
    B.
    from one subunit of a company to another subunit in the company.
    C.
    from Work in Process Inventory to Finished Goods Inventory in a standard costing system.
    D.
    back to one of the company's suppliers.

2 points

Question 5

  1. Barn Company has net income of $4,000,000, interest expense of $2,000,000, sales totaling $86,000,000, and a tax rate of 40%. How much is NOPAT?
    Answer
    A.
    $4,800,000
    B.
    $5,200,000
    C.
    $2,800,000
    D.
    $6,000,000

2 points

Question 6

  1. In accepting a special order, the company should consider whether
    Answer
    A.
    production capacity exists to complete the order.
    B.
    demand for other products will not be adversely affected.
    C.
    the incremental costs are less than the incremental revenues.
    D.
    All of the above are true.

2 points

Question 7

  1. Betty Boulder is the owner/operator of a tanning salon. She is considering four price levels for a weekly tanning pass. Her estimate of price and quantity demanded are:
    Price
    Quantity Demanded
    $14.00
    310
    $12.00
    380
    $10.00
    420
    $7.00
    530

    Monthly costs of providing the tanning service include $2,500 of fixed costs and variable costs of $2.50 per service. Which price will yield the largest monthly profit?
    Answer
    A.
    $10.00
    B.
    $14.00
    C.
    S12.00
    D.
    $7.00

2 points

Question 8

  1. What is the basic premise of target costing?
    Answer
    A.
    Products should be designed based on what features are technologically possible, and then marketed to customers at a price that covers the costs of design.
    B.
    Products should be designed to include as many features as possible.
    C.
    Customers are generally willing to pay for whatever companies design, so cost should not be a factor in the design process.
    D.
    Products should be designed to meet customer needs at a price customers are willing to pay that allows the company to make a reasonable profit.

2 points

Question 9

  1. Carlton Products Company has analyzed the indirect costs associated with servicing its various customers in order to assess customer profitability. Results appear below:
    Cost Pool
    Annual Cost
    Cost Driver
    Annual Driver Quantity
    Processing electronic orders
    $1,000,000
    Number of orders
    500,000
    Processing non-electronic orders
    $2,000,000
    Number of orders
    400,000
    Picking orders
    $3,000,000
    Number of different products ordered
    800,000
    Packaging orders
    $1,500,000
    Number of items ordered
    50,000,000
    Returns
    $2,000,000
    Number of returns
    50,000

    What is the allocation rate for the cost of a return?
    Answer
    A.
    $40
    B.
    $20.00
    C.
    $50.00
    D.
    $6.09

2 points

Question 10

  1. A custom yacht-building company uses activity-based pricing. The company's activity pools are as follows:
    Cost Pool
    Annual Estimated Cost
    Cost Driver
    Annual Driver Quantity
    Design
    $2,500,000
    Number of designs
    80 designs
    Production
    4,000,000
    Labor hours
    125,000 labor hours
    Customer Service
    80,000
    Number of customers
    20 customers

    One particular customer requested 2 different designs which led to the production of one yacht which took 2,400 labor hours to complete. What additional costs will be charged to this customer?
    Answer
    A.
    $143,300
    B.
    $108,050
    C.
    $139,300
    D.
    $112,050

2 points

Question 11

  1. The Jar Company requires a 40% profit margin on its single product. At a price of $56 per unit the company expects to sell 20,000 units. The company's target cost should be:
    Answer
    A.
    $78.40
    B.
    $33.60
    C.
    $56.00
    D.
    $40.00

2 points

Question 12

  1. Jackson Company is trying to determine the optimal price to charge for its PUNCH model. Jackson has fixed costs of $50,000 and the PUNCH has variable costs of $12.00 per unit. Jackson has determined that the following relationships exist between price and demand:
    Price
    Demand
    $20
    6,875
    $19
    8,800
    $18
    10,000
    $17
    11,000

    What is the anticipated revenue for a price of $19?
    Answer
    A.
    $350,000
    B.
    $167,200
    C.
    $155,000
    D.
    $137,500

2 points

Question 13

  1. Which of the following are relevant in deciding whether to accept or reject a special order?
    Answer
    A.
    The impact the order will have on existing business.
    B.
    The price that will be charged on the special order.
    C.
    The incremental cost of filling the special order.
    D.
    All of the above.

2 points

Question 14

  1. If accepting a special order will cause an increase in fixed costs, the order should
    Answer
    A.
    be accepted if the increase in fixed costs is less than the incremental revenue.
    B.
    be accepted as long as the revenue is greater than the associated variable costs.
    C.
    be accepted if the incremental revenue is greater than the total incremental costs.
    D.
    not be accepted.

2 points

Question 15

  1. A company has $8.00 per unit in variable costs and $3.00 per unit in fixed costs at a volume of 50,000 units. If the company uses cost plus pricing, which of the following is true?
    Answer
    A.
    The company should use a unit cost of $11.00 per unit only at a volume of 50,000 units.
    B.
    The company should use a unit cost of $11.00 at all volumes.
    C.
    The company should use a unit cost of $11.00 as long as it stays within the relevant range of volume.
    D.
    There is no volume at which the company should use a unit volume of 50,000.

2 points

Question 16

  1. What primary information is provided in the statement of cash flows?
    Answer
    A.
    The amount of profits earned during a period.
    B.
    Cash receipts and cash payments of an entity's profitable activities during a period.
    C.
    Where a company's money comes from and where it goes.
    D.
    Estimates of future cash flows.

2 points

Question 17

  1. Bond Company had net income of $18,200 in 2011. Dividends of $8,000 were declared and paid during the year. Changes in the following accounts during the year are as follows:
    Increase/(Decrease)
    Accounts receivable
    $4,000
    Inventory
    ($7,000)
    Prepaid expenses
    $4,000
    Property, plant, and equipment
    $70,000
    Accumulated depreciation
    $15,000
    Long-term investments
    ($25,000)

    No property, plant, and equipment was sold during the year. How much is the company's net cash provided(used) by investing activities?
    Answer
    A.
    $61,000
    B.
    $45,000
    C.
    $95,000
    D.
    ($45,000)

2 points

Question 18

  1. Which of the following is considered to be cash flow from financing activities?
    Answer
    A.
    Dividends received.
    B.
    Cash received from customers for amounts due on account.
    C.
    Proceeds from issuing common stock.
    D.
    Amounts due from a customer.

2 points

Question 19

  1. The Banks Company prepares the statement of cash flows using the indirect method. The statement reported that cash provided by operating activities for the year was $8,000. If the company experienced a $14,000 decrease in accounts receivable, a $13,000 decrease in accounts payable, and a $4,000 decrease in inventory during the year, the company's net income(loss) must have been:
    Answer
    A.
    ($5,000)
    B.
    $13,000
    C.
    $5,000
    D.
    $3,000

2 points

Question 20

  1. A decrease in accounts receivable is added to net income to arrive at operating cash flows because:
    Answer
    A.
    cash collections from customers were greater than the sales generated.
    B.
    cash collections increased due to an increase in sales.
    C.
    cash collections decreased due to a decline in sales.
    D.
    cash collections from customers were less than the sales reported.

2 points

Question 21

  1. Which of the following is considered to be cash flow from operating activities?
    Answer
    A.
    Cash paid for dividends.
    B.
    Cash paid to suppliers and employees.
    C.
    Cash received from the sale of a plant asset.
    D.
    Cash paid for loan payments.

2 points

Question 22

  1. Selected information from the 2010 and 2011 accounting records of Riddle Corp. is provided below:
    December 31,
    2011
    2010
    Net cash provided (used) by operations
    $16,000
    $12,000
    Net cash provided (used) by investing activities
    (11,000)
    6,000
    Net cash provided (used) by financing activities
    4,000
    (13,000)
    Cash balance
    ?
    21,000

    At the end of 2011, how much is Riddle's cash balance?
    Answer
    A.
    $12,000
    B.
    $9,000
    C.
    $30,000
    D.
    $35,000

2 points

Question 23

  1. Cash flows related to buying and selling long-term assets are classified as:
    Answer
    A.
    non-cash activities.
    B.
    financing activities.
    C.
    investing activities.
    D.
    operating activities.

2 points

Question 24

  1. Circletorer Company had net income of $21,000 in 2011. No dividends were declared or paid during the year. Changes in the following accounts during the year are as follows:
    Increase/(Decrease)
    Accounts receivable
    $14,000
    Inventory
    $20,000
    Prepaid expenses
    ($7,000)
    Accounts payable
    ($7,000)
    Salaries payable
    $5,000

    Using the indirect method of computing cash flows, the company's net cash provided/(used) by operating activities is:
    Answer
    A.
    ($4,000)
    B.
    ($11,000)
    C.
    ($8,000)
    D.
    $25,000

2 points

Question 25

  1. The repurchase of a company's own stock will be classified as a(n):
    Answer
    A.
    financing activity.
    B.
    non-cash activity.
    C.
    operating activity.
    D.
    investing activity.


Customer replied 439 days and 5 hours ago.

Question 26

  1. The budget committee consists of
    Answer
    A.
    representatives from the stockholders and suppliers.
    B.
    senior managers, including the CEO and CFO.
    C.
    all employees interested in providing input to the budgeting process.
    D.
    all those who have loaned money to the company.

2 points

Question 27

  1. When budgets are used for evaluation, the differences between budgeted and actual amounts are called
    Answer
    A.
    budget variances.
    B.
    questionable results.
    C.
    explainable exceptions.
    D.
    top-down differential.

2 points

Question 28

  1. Setting the sales budget is very important because
    Answer
    A.
    the rest of the master budget is driven by the sales budget.
    B.
    many performance targets are set by the sales budgets.
    C.
    bonuses are often at stake based on achieving the sales budget.
    D.
    All of the above.

2 points

Question 29

  1. Development of a budget
    Answer
    A.
    is required by GAAP.
    B.
    guarantees that the company will be profitable.
    C.
    enhances communication and coordination among managers.
    D.
    is a task best completed by the controller working alone.

2 points

Question 30

  1. In recent years, Park Company has collected 20% of its sales in the month of the sale and the other 80% in the following month. During the first three months of 2011, Park is anticipating sales of $350,000; $403,000; and $389,000, respectively. What is the amount of cash receipts budgeted for February?
    Answer
    A.
    $360,600
    B.
    $392,400
    C.
    $391,800
    D.
    $403,000

2 points

Question 31

  1. Which of the following ratios relates the company's profitability to its market price?
    Answer
    A.
    Return on total assets.
    B.
    Return on common stockholders' equity.
    C.
    Price-earnings ratio.
    D.
    Earnings per share.

2 points

Question 32

  1. Blackstone Company has total assets of $550,000 and owners' equity of $220,000, of which $65,000 of the equity is common stock. To which of the following is the company's debt-to-equity ratio closest?
    Answer
    A.
    0.60
    B.
    5.08
    C.
    0.67
    D.
    1.50

2 points

Question 33

  1. Financing with debt will:
    Answer
    A.
    increase the financial risk in a company.
    B.
    increase the potential return for shareholders.
    C.
    create a requirement to pay interest, even when there is no income.
    D.
    All of the above are correct.

2 points

Question 34

  1. Times interest earned measures
    Answer
    A.
    the number of multiples of interest expense that earnings before interest and tax are.
    B.
    the same thing as the debt to equity ratio.
    C.
    the increase in debt from the prior year.
    D.
    All of the above.

2 points

Question 35

  1. If return on common stockholders' equity is higher than return on total assets,
    Answer
    A.
    financial leverage is being used effectively.
    B.
    the company is debt free.
    C.
    the company should sell more stock.
    D.
    All of the above.

2 points

Question 36

  1. Cinema Theatre had a current ratio of 2.5 to 1 on December 31 of the current year. On that date, the company's assets were as follows:
    Cash
    $ 100,000
    Accounts receivable (net)
    600,000
    Inventory
    960,000
    Prepaid expenses
    25,000
    Equipment (net)
    2,200,000
    Total assets
    3,885,000
    Reference: Ref 14-3

    How much are the company's current liabilities on December 31?
    Answer
    A.
    $674,000
    B.
    $640,000
    C.
    $424,000
    D.
    $664,000

2 points

Question 37

  1. Hairston Company had cost of goods sold of $900,000 last year. The company's beginning inventory balance was $140,000 and the ending inventory balance was $113,000. How many days will it take Hairston to sell its inventory as of year end?
    Answer
    A.
    51.3 days.
    B.
    8.0 days.
    C.
    56.8 days.
    D.
    45.8 days.

2 points

Question 38

  1. If the rate of growth in sales is greater than the rate of growth in cost of goods sold from one year to the next, you would expect that:
    Answer
    A.
    the company is getting smaller.
    B.
    the gross profit ratio would be increasing.
    C.
    the gross profit ratio would be decreasing.
    D.
    net income would have to increase.

2 points

Question 39

  1. Megaway, Inc. is a large food and drug retailer with more than 1,700 stores in the U.S. and Canada. The following financial information relates to fiscal 2011 and 2012.
    (In Millions)
    2012
    2011
    Sales
    $42,286
    $40,185
    Cost of goods sold
    33,000
    31,000
    Receivables
    577.9
    461.2
    Merchandise inventory
    2,900
    2,700

    What is Megaway, Inc's days' sales in inventory for 2012 and 2011, respectively?
    Answer
    A.
    32.07, 31.79
    B.
    41.52, 41.91
    C.
    3.12, 3.15
    D.
    2.13; 3.15

2 points

Question 40

  1. Palm Company reported earnings per share of common stock $2 in 2012 and paid dividends of $1.50 per share. The current market price per share is $15 and the book value per share is $14. How much is the company's price-earnings ratio?
    Answer
    A.
    $7.00
    B.
    $6.75
    C.
    $30.00
    D.
    $7.50

2 points

Question 41

  1. Favorable variances
    Answer
    A.
    are generally closed to Work in Process.
    B.
    cannot occur when the Manufacturing Overhead account is used.
    C.
    have a debit balance.
    D.
    are associated with reductions in the expenses of the company.

2 points

Question 42

  1. If the controllable overhead variance is favorable, the overhead volume variance
    Answer
    A.
    will be favorable.
    B.
    will be zero.
    C.
    may be favorable or unfavorable.
    D.
    will not be significant and may be omitted from the analysis.

2 points

Question 43

  1. Rockerfeller Company uses standard costing. Overhead is applied at $8 per unit produced. Data for the month of March follows:
    Actual overhead costs
    $67,000
    Budgeted overhead – fixed
    42,000
    Budgeted overhead – variable per unit
    $3
    Actual units produced
    8,700
    Budgeted units to be produced
    8,400

    How much is the overhead volume variance?
    Answer
    A.
    $700 favorable.
    B.
    $1,100 favorable.
    C.
    $2,600 favorable .
    D.
    $1,500 favorable.

2 points

Question 44

  1. Treyir Company's standards for its Hunter model widget include 50 ounces of borolox at a cost of $6.30 per ounce. During May, the company purchased 56,000 ounces of borolox at a total cost of $351,680. The company produced 1,025 widgets during May and used 53,500 ounces of borolox in the process. Calculate the material price variance.
    Answer
    A.
    $1,120 favorable.
    B.
    $13,055 unfavorable.
    C.
    $14,175 unfavorable.
    D.
    $14,630 favorable.

2 points

Question 45

  1. Standard costs can be used in
    Answer
    A.
    manufacturing companies.
    B.
    service companies.
    C.
    both manufacturing and service companies.
    D.
    None of the above is correct.

2 points

Question 46

  1. How much is the present value of $216,000 to be received in 7years if the discount rate is 16%?
    Answer
    A.
    $61,051
    B.
    $241,920
    C.
    $73,159
    D.
    $76,421

2 points

Question 47

  1. Present value techniques
    Answer
    A.
    ignore cash flows that will occur more than ten years in the future.
    B.
    treat a dollar received today the same as a dollar to be received a year from today.
    C.
    are a way of converting future dollars into their equivalent current dollars.
    D.
    provide more conservative results than similar time value of money computations.

2 points

Question 48

  1. The Higston Company has just purchased a piece of equipment at a cost of $500,000. This equipment will reduce operating costs by $100,000 each year for the next eight years. This equipment replaces old equipment that was sold for $10,000 cash. Ignoring income taxes, the new equipments has a pay-back period of:
    Answer
    A.
    4.8 years.
    B.
    5 years.
    C.
    4.9 years.
    D.
    5.1 years.

2 points

Question 49

  1. An investment promises a return of $10,000 per year at the end of each of the next six years. Using a required rate of return of 12%, what is the present value of this series of payments?
    Answer
    A.
    $60,000
    B.
    $41,114
    C.
    $41,920
    D.
    $30,396

2 points

Question 50

Which of the following would most likely be the present value of a 5 year annuity of $5,000 per year (assuming a positive discount rate)?
Answer
A.
$2,000
B.
$18,000
C.
$5,000
D.
$25,000

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Expert:  BusinessTutor replied 439 days and 4 hours ago.

Got them :)

Accepted Answer

Picture
Expert:  BusinessTutor replied 439 days and 2 hours ago.

Here you go:

 

http://www.box.com/s/t7lbo6fdtu1pmnavb88d

 

Regards,

Expert TypeTutor
Category: Finance
Pos. Feedback: 99.8 %
Accepts: 1881
Answered: 2/28/2012

Experience: More than 5000 online tutoring sessions.

Ask this Expert a Question >
Customer replied 439 days and 2 hours ago.

Thank you...How can I do to add $6 more?

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Expert:  BusinessTutor replied 439 days and 2 hours ago.

That's ok :)

 

I am happy :)

 

 

40967.4476100694

Customer replied 426 days and 10 hours ago.

Let me know if you are online later today (Sunday March 11th). I need your help with two questions.
Thanks

Picture
Expert:  BusinessTutor replied 426 days and 9 hours ago.

Hello

 

I am sorry I caught a very terrible cold & I cannot stay much online tonight. You can post your questions, but I will not be able to help before tomorrow night

 

Thank you

 
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