Answer:
c. $455.75
Explanation:
The calculations for the quarterly payments are as follows:
= Remaining balance ÷ PVIFA factor for 2.5% over 12 years
Here,
Remaining balance is
= $5,500 - $5,500 × 15%
= $5,500 - $825
= $4,675
And the PVIFA factor for 2.5% across 12 years is 10.2578.
Refer to the PVIFA table.
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= $4,675 ÷ 10.2578
= $455.75
Considering quarterly payments, the rate is divided by four and the time frame becomes four times as long.
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Response:
For the year 2010
Degree of combined leverage equals 3.82
For the year 2011
Degree of combined leverage equals 4.11
Clarification:
The degree of combined leverage of the company is computed using the formula provided:
Degree of combined leverage = Contribution margin / EBT
Where
Contribution margin is calculated as:
Contribution margin = Sales - Variable Costs
EBT (Earnings before tax) is calculated as:
EBT = EBIT - Interest
Now, calculate accordingly using the formula:
For 2010:
Contribution margin: $700,000 - $406,000
= $294,000
EBT = $119,000 - $42,000
= $77,000
Degree of combined leverage: $294,000 / $77,000
= 3.82
For 2011:
Contribution margin: $760,000 - $448,000
= $312,000
EBT: $122,000 - $46,000
= $76,000
Degree of combined leverage: $312,000 / $76,000
= 4.11
Answer:
C) As an alternative financing source in the debt service fund and as an alternative financing use in the capital projects fund.
Explanation:
The content lacks the options:
- A) As revenue in the debt service fund and as expenditure in the capital projects fund.
-
B) As an alternative financing source in the capital projects fund and as an alternative financing use in the debt service fund.
-
C) As an alternative financing source in the debt service fund and as an alternative financing use in the capital projects fund.
-
D) As a special item recorded in both the debt service and capital project funds.
Accounts for other financing sources are utilized by governments to register revenues and expenses not tied to operational activities. The debt service fund consists of the funds that the government has allocated to cover its outstanding obligations. The capital projects fund is where the government tracks expenditures relating to designated projects.
It indicates a financial advantage of $18,800 for accepting the offer. Kleffman Corporation currently produces part X31 with an annual output of 2,000 units. According to their accounting data, the production costs at this level are as follows: DM $6.90, DL $4.90, V MO $8.00, Supervisor $2.20, Depreciation $1.40, General $2.80, totaling $26.20 per unit. The unavoidable cost amounts to $2.80 x 2,000 units = $5,600. The depreciation is treated as a sunk cost, reflecting no cash flow impact on the business. Making the part internally results in a total expenditure of $52,400. The potential opportunity cost associated with generating an additional segment margin of $18,800 comes into play. The total cost aligns at $71,200 against the purchase cost of $23.40 x 2,000 = $46,800. The unavoidable cost remains at $5,600, resulting in a total of $52,400 when taken into account. Thus, the differential is computed as 71,200 - 52,400 = 18,800.
