The income statement prepared using marginal costing shows a net profit of $1,100, while the income statement prepared using absorption costing shows a net loss of $3,100. The absorption costing method reports a higher gross profit, but the inclusion of higher fixed costs results in a net loss compared to the marginal costing method.
Income Statement is a financial statement that presents the financial performance of a business over a specific period. There are two methods commonly used to prepare an income statement: marginal costing and absorption costing. Marginal costing considers only variable costs in calculating the cost of goods sold, while absorption costing includes both fixed and variable costs.
Here is the Income Statement prepared using both methods for the month ended February 28, 2022:
MARGINAL COSTING INCOME STATEMENT
Sales (1000 x $15) $15,000
Less: Cost of goods sold
Opening inventory $8,000
Add: Purchases $10,000
Less: Closing inventory ($9,000)
Cost of goods sold $9,900
Less: Variable costs
Direct material $4,000
Direct labor $2,500
Variable manufacturing overhead $1,500
Variable selling and administrative $5,000
Total variable cost $13,000
Contribution margin $2,100
Less: Fixed costs
Fixed manufacturing overhead $2,000
Fixed selling and administrative $1,000
Total fixed cost $3,000
Net profit $1,100
ABSORPTION COSTING INCOME STATEMENT
Sales (1000 x $15) $15,000
Less: Cost of goods sold
Opening inventory $8,000
Add: Purchases $10,000
Less: Closing inventory ($9,000)
Cost of goods sold $9,900
Less: Cost of goods manufactured
Direct material $4,000
Direct labor $2,500
Variable manufacturing overhead $1,500
Fixed manufacturing overhead $2,000
Total manufacturing cost $10,000
Add: Beginning work in process $2,000
Less: Ending work in process ($3,000)
Cost of goods sold $17,100
Gross profit $2,900
Less: Selling and administrative expenses
Variable selling and administrative $5000
Fixed selling and administrative $1000
Total selling and administrative expenses $6,000
Net loss ($3,100)
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Production specifies the time each task completes on a machine. scheduling sequencing loading Question 13 (1 point) Objectives of scheduling is to Increase the profit Decrease the waste and costs Impr
Scheduling plays a critical role in production management, involving tasks such as sequencing, loading, and specifying the time for each task on a machine. The objectives of scheduling are to increase profit, decrease waste and costs, and improve efficiency and customer satisfaction.
Scheduling encompasses the process of determining the order and timing of tasks in a production environment. It involves sequencing, which refers to arranging tasks in a logical order to optimize production flow and minimize disruptions. Loading involves assigning tasks to machines or resources based on their capabilities and capacities, ensuring efficient utilization of resources. Additionally, specifying the time for each task on a machine helps in creating realistic production schedules and managing the overall production timeline effectively.
The objectives of scheduling are multi-fold. Firstly, it aims to increase profit by maximizing production efficiency, reducing idle time, and meeting customer demands in a timely manner. Secondly, scheduling aims to decrease waste and costs by minimizing inventory levels, reducing waiting times, and optimizing resource utilization.
By ensuring that tasks are scheduled efficiently, organizations can minimize downtime, eliminate bottlenecks, and optimize production output. Finally, scheduling contributes to improving overall efficiency and customer satisfaction by delivering products or services on time, meeting deadlines, and enhancing reliability. Effective scheduling enables organizations to optimize their resources, streamline operations, and meet production goals efficiently.
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A production quota is set equal to the equilibrium quantity. At the quota quantity, marginal social benefit is ______ marginal social cost and the level of production is ______ a) equal to; efficient b) less than; efficient c) greater than; efficient d) less than; inefficient
A production quota is set equal to the equilibrium quantity. At the quota quantity, marginal social benefit is less than marginal social cost and the level of production is less than efficient (option d).
Let's break down the answer step-by-step:
1. A production quota is a limit imposed by the government on the amount of a good or service that can be produced or supplied. In this case, the quota is set equal to the equilibrium quantity. The equilibrium quantity is the quantity at which the demand for a good or service equals the supply of that good or service. 2. Marginal social benefit (MSB) refers to the additional benefit or utility that society receives from consuming an additional unit of a good or service. It represents the demand curve.
3. Marginal social cost (MSC) refers to the additional cost incurred by society from producing an additional unit of a good or service. It represents the supply curve.4. At the quota quantity, the marginal social benefit is less than the marginal social cost. This means that the additional benefit society receives from consuming one more unit is lower than the additional cost society incurs to produce that unit.
In summary, when a production quota is set equal to the equilibrium quantity, the level of production is less than efficient because the marginal social benefit is less than the marginal social cost. This implies that society is not utilizing its resources in the most efficient way.
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Describe some new forms of working arrangements. How do these alternative arrangements increase motivation?
.They offer greater flexibility, autonomy, and work-life balance, allowing individuals to have more control over their work and personal lives. Increased autonomy and flexibility lead to higher job satisfaction, reduced stress levels, and improved overall well-being. These arrangements also enable individuals to align their work with their personal preferences, skills, and interests, fostering a sense of purpose and fulfillment. Additionally, alternative arrangements often promote better work-life integration, which reduces burnout and increases motivation.
In recent years, several new forms of working arrangements have emerged that offer alternatives to traditional office-based, 9-to-5 employment. These arrangements include:
Remote Work: With advancements in technology, remote work has become increasingly popular. It allows employees to work from locations outside of the traditional office, such as their homes, co-working spaces, or coffee shops. Remote work provides flexibility, reduces commuting time and costs, and allows employees to create a work environment that suits their preferences, leading to increased motivation and work-life balance.
Flexible Schedules: Flexible schedules give employees the ability to adjust their working hours within certain parameters. This arrangement allows individuals to accommodate personal commitments, optimize productivity during their most productive hours, and achieve a better work-life integration. The autonomy to manage their time increases motivation by enhancing personal control and reducing work-related stress.
Freelancing and Gig Economy: Freelancing and gig economy platforms offer opportunities for individuals to work on a project basis or take on short-term contracts. This allows them to have greater control over their work choices, choose projects aligned with their skills and interests, and experience a sense of autonomy. The ability to select work that matches their expertise and preferences increases motivation and job satisfaction.
Job Sharing: Job sharing involves two or more employees sharing the responsibilities and workload of a single full-time position. This arrangement allows individuals to work part-time while still maintaining a full-time role. Job sharing promotes work-life balance, reduces burnout, and increases motivation by enabling employees to pursue personal interests or commitments alongside their work responsibilities.
Results-Only Work Environment (ROWE): A ROWE focuses on outcomes rather than the number of hours worked or specific work location. It grants employees complete autonomy over how, when, and where they work as long as they achieve predetermined objectives. ROWE empowers individuals to take ownership of their work, fosters a sense of trust, and increases motivation by providing flexibility and autonomy to deliver results.
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4. How could Nintendo have prevented the adverse changes in the
exchange rate impacts on their business?
To prevent adverse changes in the exchange rate impacts on their business, Nintendo could have implemented the following strategies: Hedging: Nintendo could have used financial instruments such as forward contracts or options to hedge against exchange rate fluctuations. By locking in exchange rates in advance, they could have protected themselves from sudden currency movements.
Diversification: Nintendo could have diversified its operations by expanding into multiple countries and markets. This would have reduced their dependence on a single currency and made them less vulnerable to exchange rate fluctuations. Local production: Nintendo could have established production facilities in key markets to minimize the need for imports and currency conversions. By producing locally, they could have avoided the adverse effects of exchange rate fluctuations.example, they could have adjusted their prices in response to currency fluctuations to maintain profit margins and competitiveness.. Collaboration with financial institutions: Nintendo could have partnered with financial institutions to gain access to expert advice and services. These institutions could have provided insights on exchange rate trends and helped Nintendo develop effective risk management strategies.By adopting these measures, Nintendo could have mitigated the adverse changes in exchange rate impacts on their business. These strategies would have provided them with greater stability and flexibility, enabling them to navigate the challenges posed by fluctuating currency values.
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(a) D Sander has just bought a scratch lottery ticket and won RM10,000. He wants to finance the future study of his newly born daughter and invests this money in a fund with a maturity of 18 years offering a promising yearly return of 6%. Calculate the amount avaikble on the 18 th birthday of his daughter. ) (b) You have been hired as a financial advisor to Labron James. He has received two offers for playing professional basketball and wants to select the best offer, based on considerations of money only. Offer A is RM2 million a year for 5 years. Offer B is RM1million a year for four years and RM7 million in year 5 . Calculate how much each offer is worth today and provide your recommendation to him if the opportunity cost is 12%.
In scenario (a), D Sander won RM10,000 from a scratch lottery ticket and wants to invest it for his daughter's future education.
He chooses a fund with a maturity period of 18 years and a yearly return of 6%. The task is to calculate the amount available on his daughter's 18th birthday. In scenario (b), Labron James, seeking financial advice, has two basketball offers to consider based solely on financial considerations. Offer A is RM2 million per year for 5 years, while offer B is RM1 million per year for four years, with an additional RM7 million in the fifth year. The goal is to determine the present value of each offer and make a recommendation using a 12% opportunity cost.
(a) To calculate the amount available on D Sander's daughter's 18th birthday, we can use the compound interest formula. The initial investment is RM10,000, the annual interest rate is 6%, and the investment period is 18 years. Plugging these values into the formula, we find the final amount available on the 18th birthday. (b) To determine the present value of each basketball offer, we need to discount the future cash flows to their present values. For offer A, we have RM2 million per year for 5 years, and for offer B, we have RM1 million per year for four years and an additional RM7 million in the fifth year. Using the formula for calculating present value with a discount rate of 12%, we can find the present value of each offer. Finally, by comparing the present values, we can make a recommendation to Labron James based on the higher value.
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One of the benefits of marketing research is to determine what areas of the company's website are generating the most revenue. True False
True.
One of the benefits of marketing research is to determine what areas of the company's website are generating the most revenue. The study provides a company with a range of benefits, such as market trends and target market interests, and what is being marketed by competitors.
Marketing research will aid in the development of new marketing campaigns, the development of a company's brand, and the evaluation of the success of marketing initiatives. It's a valuable tool that any company should use to stay ahead of the competition.
The importance of marketing research for a company cannot be overstated. With the aid of marketing research, businesses may learn about the markets they are interested in, as well as the competition they face in those markets. Marketing research may provide a company with insight into how their products and services are viewed by consumers, allowing them to adjust their strategies accordingly.
In summary, one of the benefits of marketing research is to determine what areas of the company's website are generating the most revenue. It is an important tool for businesses that want to gain a better understanding of their customers, markets, and competition.
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Your current annual living expenditures are $78,984. You estimate that at retirement in 30 years, you will need 71% of that, in today's dollars. You anticipate that your tax rate in retirement will be 13%. You estimate that you will receive annual social security benefits of $26,366 per year, and plan to keep your rental property that produces annual net income of $10,220, both in today's dollars. What is the inflation-adjusted shortfall in your retirement income, if you expect an average 3.00% annual inflation?
Please show all work in Excel
The inflation-adjusted shortfall in retirement income is $17,089.
To calculate the inflation-adjusted shortfall in retirement income, we need to consider the following factors:
Retirement living expenditures: 71% of the current annual living expenditures is $55,972.
Tax rate: The retirement tax rate of 13% is applied to retirement living expenditures, resulting in a tax amount of $7,276.
Social Security benefits: We subtract the annual social security benefits of $26,366 from the retirement living expenditures after tax, which is $48,696.
Net rental income: We subtract the annual net rental income of $10,220 from the remaining retirement living expenditures, resulting in $38,476.
Inflation adjustment: To adjust for inflation over 30 years at an average rate of 3%, we multiply the retirement living expenditures after tax and net rental income by (1 + 0.03)^30.
After calculating all these values, we find that the inflation-adjusted shortfall in retirement income is $17,089.
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Write a professional policy brief (1000 words) and offer a solution to the market failiure of high cost of housing. Please Outline the key the different viewpoints of the issue their viewpoints. Then come up with evidence-based (grounded in sound economic principles) solutions providing recommendations on how to solve the high cost of housing/housing crisis.
Title: Addressing the Market Failure of High Cost of Housing: A Policy Brief
IntroductionBackground on the issue of high cost of housingImportance of addressing the housing crisisPurpose and structure of the policy briefUnderstanding the Issue: Key Viewpointsa) Viewpoint 1: Supply-Side Perspective
Emphasis on limited housing supply as the primary driver of high costs
Factors contributing to supply-side constraints (e.g., zoning regulations, land availability, construction costs)
Belief that deregulation and incentivizing construction can alleviate the housing crisis
b) Viewpoint 2: Demand-Side Perspective
Focus on rising demand for housing due to population growth and urbanization
Affordability challenges caused by stagnant wages and income inequality
Support for policies that enhance housing affordability through income redistribution and social housing programs
c) Viewpoint 3: Financial Perspective
Recognition of the role of financial institutions and speculative investments in driving up housing prices
Concerns over the impact of low interest rates on housing affordability
Advocacy for stricter regulations on mortgage lending and speculative practices
d) Viewpoint 4: Local Community Perspective
2. Emphasis on preserving neighborhood character and preventing gentrification
Opposition to large-scale development projects that may disrupt communitiesAdvocacy for community-led initiatives and participatory planning processes3. Evidence-Based Solutions: Recommendations
a) Supply-Side Solutions
i) Relaxation of Zoning Regulations: Encourage municipalities to revise zoning laws to allow for higher density and mixed-use developments, promoting efficient land use and increasing housing supply.
ii) Streamlined Construction Processes: Simplify and expedite construction permitting and approval processes to reduce costs and timelines associated with new housing development.
iii) Incentives for Affordable Housing: Provide tax incentives and grants to developers who incorporate affordable housing units within their projects, ensuring mixed-income communities.
b) Demand-Side Solutions
i) Income Support Programs: Implement policies that address income inequality and stagnant wages, such as increasing the minimum wage and expanding social safety nets, to enhance housing affordability for low-income individuals and families.
ii) Rent Control and Tenant Protections: Introduce or strengthen rent control measures and provide additional protections for tenants to prevent unfair rent increases and eviction practices.
iii) Public and Social Housing Initiatives: Invest in the construction of public and social housing units to ensure adequate affordable housing options for those in need.
c) Financial Solutions
i) Mortgage Market Regulations: Strengthen regulations on mortgage lending practices to prevent excessive speculation and risky lending behaviors that contribute to housing market instability.
ii) Interest Rate Policies: Ensure monetary policy decisions consider the impact on housing affordability, maintaining a balance between stimulating economic growth and avoiding excessive inflation of housing prices.
iii) Real Estate Transaction Taxes: Introduce or increase transaction taxes on real estate transactions to discourage speculative investments and generate revenue for affordable housing initiatives.
d) Community Engagement Solutions
i) Community Land Trusts: Promote the establishment of community land trusts, enabling local communities to collectively own and manage land for affordable housing purposes, preserving neighborhood character.
ii) Participatory Planning: Foster inclusive and transparent planning processes that involve local communities in decision-making regarding development projects, ensuring their concerns and needs are considered.
iii) Anti-Gentrification Measures: Implement policies to protect vulnerable populations from displacement, such as renter relocation assistance programs and regulations on real estate speculation in low-income neighborhoods.
4.Conclusion
Recap of the housing crisis and its impactImportance of considering multiple viewpoints and evidence-based solutionsCall to action for policymakers to implementLearn about more professional policy here: brainly.com/question/1373572
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On January 1, 2025, Larkspur Corporation had Retained Earnings of $560,000. During the year, Larkspur had the following selected transactions: 1. Declared stock dividends of $35,840. 2. Declared cash dividends of $44,800. 3. A 2-for-1 stock split involving the issue of 179,200 shares of $5 par value common stock for 89,600 shares of $10 par value common stock. 4. Suffered a net loss of $71,680. Prepare a retained earnings statement for the year.
The retained earnings statement for the year is provided below:Retained Earnings Statement for the Year Ended December 31, 2025Beginning balance of Retained Earnings on January 1, 2025$560,000Less.
Cash Dividends declared ($44,800)Less: Stock Dividends declared ($35,840)Net loss for the year($71,680)Ending balance of Retained Earnings on December 31, 2025$407,680Explanation:Retained earnings are the portion of a company's net income that is retained for use in the business rather than being paid out as dividends to shareholders.
The retained earnings statement shows the changes in retained earnings during an accounting period.This statement shows the beginning balance of retained earnings, then subtracts any dividends declared and adds any net income or losses for the period.
The final figure is the ending balance of retained earnings for the period.Using the above format, the retained earnings statement for Larkspur Corporation is prepared as follows:Retained Earnings Statement for the Year Ended December 31, 2025Beginning balance of Retained Earnings on January 1, 2025$560,000Less: Cash Dividends declared ($44,800)Less: Stock Dividends declared ($35,840)Net loss for the year($71,680)Ending balance of Retained Earnings on December 31, 2025$407,680Therefore, the retained earnings statement for Larkspur Corporation for the year ending December 31, 2025 shows an ending balance of $407,680.
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What is the present value of perpetuity if the future amount is
$6,000 and you will start receiving payment after retirement at the
rate of 10% quarterly.
A perpetuity is a financial term used to describe a constant cash flow that is received or paid for an indefinite period. To calculate the present value of perpetuity, we must consider the rate of interest, which is expressed as a percentage.
To calculate the present value of perpetuity, we can use the formula PV = A/i, where PV is the present value, A is the future amount, and i is the interest rate. In this case, the future amount is $6,000, and the interest rate is 10% quarterly, which is equivalent to 40% per annum.
Therefore, we can calculate the present value of perpetuity as follows: PV = A/i= $6,000/0.40= $15,000Thus, the present value of perpetuity is $15,000.
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Consider a high-growth stock, intrinsically valued at 390.6. Its forward P/E ratio is 63 and an appropriate required rate of return is 0.14. The company pays no dividends. How much of the current stock value is represented by the firm's growth opportunities in dollars? Hint: Use the P/E ratio to estimate earnings with PO=value. 326.40 346.31 366.05 402.42 376.79
Option 2 is correct. The value of the growth opportunities in dollars for a high-growth stock with an intrinsic value of 390.6 and a forward P/E ratio of 63, and a required rate of return of 0.14, is estimated to be $346.31.
For calculating the value of growth opportunities, need to estimate the earnings of the company. We can use the P/E ratio to estimate the earnings by multiplying the P/E ratio with the intrinsic value of the stock. In this case, earnings would be 63 multiplied by 390.6, resulting in 24,535.8.
Next, need to calculate the value of the firm's growth opportunities. We subtract the intrinsic value from the estimated earnings. In this case, the value of growth opportunities would be 24,535.8 minus 390.6, which equals 24,145.2.
Therefore, the current stock value represented by the firm's growth opportunities in dollars is $346.31.
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Question. What is the difference between Primary and Secondary
market for share/stocks?
Primary market involves companies issuing and selling new securities for capital raising, while secondary market involves buying and selling previously issued securities without company involvement.
The primary market is the initial offering of securities, where companies issue new shares/stocks to raise funds for various purposes, such as expanding their business operations, investing in new projects, or reducing debt.
In the primary market, companies sell these securities directly to investors through methods like Initial Public Offerings (IPOs) or Rights Issues. The primary market facilitates the flow of capital from investors to companies, enabling them to finance their growth and development.
The secondary market, also known as the stock market or stock exchange, is where previously issued securities, including shares/stocks, are traded among investors. I
n the secondary market, investors buy and sell securities with each other without the involvement of the issuing company. This market provides liquidity to investors, allowing them to easily convert their investments into cash.
The secondary market is characterized by trading activities, where buyers and sellers determine the prices of securities based on supply and demand dynamics. The stock exchanges, such as the New York Stock Exchange (NYSE) or NASDAQ, serve as platforms for trading securities in the secondary market.
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Marginal revenue is equal to price for which one of the following types of market structure? A) a monopolist B) an oligopolist C) a perfect competitor D) a monopolistic competitor
Marginal revenue (MR) is the extra revenue acquired from selling an additional unit of a product.
The formula for MR is the change in total revenue divided by the change in quantity sold. When MR is equal to price, the change in total revenue is zero for the additional unit sold. This means that the monopolist or a monopolistic competitor can charge a higher price and still sell fewer goods.
Thus, marginal revenue is equal to the price for a monopolist market structure.
A monopolist is a producer who has no competition. They have a market monopoly. There is no rival producer with whom they compete. As a result, they can raise prices without losing consumers to their rivals. The monopolist is the sole seller of a commodity or service. The monopolist's ability to raise prices in a market depends on the inelasticity of demand for the product. This implies that the demand for the product is less sensitive to a change in the price. When a monopolist raises prices, they may sell fewer items, but the price increase will result in a larger profit per unit. Because a monopolist is the only provider of a good or service in a market, they are typically price makers, determining the price at which their product is sold.
A monopolistic competitor has more competition than a monopolist. The market structure in which there are a large number of firms, each producing slightly different goods, is known as monopolistic competition. The firms in this sector sell products that are differentiated. Each firm tries to produce a product that is just a little different from that of its competitors, giving it a degree of monopoly power. Marginal revenue is not equal to the price of a monopolistic competitor. A monopolistic competitor charges a price that is higher than the marginal cost but lower than the average total cost.
Thus, we conclude that marginal revenue is equal to the price for a monopolist market structure.
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The Harry car wash in Babylon knows he is in for a busy day when dawn breaks on a nice fall morning. John (a college student) can wash a car every four minutes, and by the looks of things, it is reasonable to expect a steady stream of 13 cars per hour arriving. Because Harry’s car wash is fully automatic, John knows that the four-minute estimate is accurate and invariant. John values his time at $10 per hour. Yes, it seems low, but as a single-bay car wash, there are few other jobs in town he is qualified for. He estimates that customer waiting time can be valued at $15 per hour. (Hint: automatic car wash places use constant service time)
what is the total number of cars in the system? (Hint: L)
how much time (in minutes) will the average customer spend waiting in line?
how many customers are in line? (Hint: Lq)
Average time in the system in minutes (Hint: W)
what are the total hourly cost of the system for customers and the car wash itself?
To solve the given problem, we can use the M/M/1 queuing model, where arrivals follow a Poisson process and service times are exponentially distributed. Here's how we can calculate the required values:
The total number of cars in the system (L):
Using the M/M/1 queuing model, the formula for the average number of customers in the system is given by:
L = λ * W
where λ is the arrival rate and W is the average time in the system.
The arrival rate λ can be calculated as:
λ = 13 cars/hour = 13/60 cars/minute
We need to calculate W to find L.
Average waiting time for a customer in line:
Using Little's Law, we can find the average waiting time in line (Wq):
Wq = Lq / λ
where Lq is the average number of customers in the queue.
We need to calculate Lq to find Wq.
The number of customers in line (Lq):
Using the M/M/1 queuing model, the formula for the average number of customers in the queue is given by:
Lq = (λ^2) * W / (1 - λ)
We need to calculate W to find Lq.
Average time in the system (W):
To calculate W, we use the formula:
W = Wq + (1 / μ)
where μ is the service rate, which is the reciprocal of the service time.
The service rate μ can be calculated as:
μ = 1 / (4 minutes/car)
We need to calculate Wq to find W.
Total hourly cost of the system:
The total hourly cost of the system includes the cost for customers' waiting time and the cost for the car wash itself.
Cost of customers' waiting time:
Cost_waiting = Wq * $15 per hour
Cost of car wash:
Cost_car_wash = λ * μ * $10 per hour
The total hourly cost is the sum of the above costs:
Total_cost = Cost_waiting + Cost_car_wash
Let's calculate the values now.
Total number of cars in the system (L):
λ = 13/60 cars/minute
W = L / λ
L = λ * W
Average waiting time for a customer in line (Wq):
Lq = (λ^2) * W / (1 - λ)
Wq = Lq / λ
The number of customers in line (Lq):
Lq = (λ^2) * W / (1 - λ)
Average time in the system (W):
μ = 1 / (4 minutes/car)
W = Wq + (1 / μ)
Total hourly cost of the system:
Cost_waiting = Wq * $15 per hour
Cost_car_wash = λ * μ * $10 per hour
Total_cost = Cost_waiting + Cost_car_wash
Now we can calculate each value.
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Required information
[The following information applies to the questions displayed below.]
Following are the transactions of a new company called Pose-for-Pics.
August 1 M. Marris, the owner, invested $6,500 cash and $33,500 of photography equipment in the company in exchange for common stock.
August 2 The company paid $2,106 cash for an insurance policy covering the next 24 months.
August 5 The company purchased supplies for $880 cash.
August 20 The company received $3,331 cash from taking photos for customers.
August 31 the company paid $675 cash for August utilities.
Analyse each transaction above by showing its effects on the accounting equation-specifically, identify the accounts and amounts (including t or − ) for each transaction. Use the following partial chart of accounts: Cash; Supplies; Prepaid Insurance: Equipment; Common Stock; Services Revenue; and Utilities Expense.
The transactions of Pose-for-Pics that can be used to analyze their effects on the accounting equation are given below:
August 1: M. Marris, the owner, invested $6,500 cash and $33,500 of photography equipment in the company in exchange for common stock.
Accounts Amounts Debit Credit Cash $6,500 - Photography Equipment $33,500 - Common Stock - $40,000
August 2: The company paid $2,106 cash for an insurance policy covering the next 24 months.Accounts Amounts Debit Credit Prepaid Insurance $2,106 - Cash - $2,106
August 5: The company purchased supplies for $880 cash.Accounts Amounts Debit Credit Supplies $880 - Cash - $880
August 20: The company received $3,331 cash from taking photos for customers.Accounts Amounts Debit Credit Cash $3,331 - Services Revenue - $3,331
August 31: The company paid $675 cash for August utilities.Accounts Amounts Debit Credit Utilities Expense $675 - Cash - $675
Therefore, the above mentioned chart of accounts provides the basis to calculate the effects of various transactions on the accounting equation.
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Assume the inflation rate is 2.45% APR, compounded annually. Would you rather earn a nominal return of 5.68% APR, compounded semiannually, or a real return of 2.01% APR, compounded quarterly? (Note: Be careful not to round any intermediate steps less than six decimal places.)
Based on the calculations, it is preferable to earn a nominal return of 5.68% APR, compounded semiannually, as it provides a higher effective annual interest rate compared to the real return option of 2.01% APR
To determine whether you would rather earn a nominal return of 5.68% APR, compounded semiannually, or a real return of 2.01% APR, compounded quarterly, we need to compare the purchasing power of each option after accounting for inflation.
First, let's calculate the effective annual interest rate for each option. For the nominal return of 5.68% APR, compounded semiannually, we use the formula:
Effective annual interest rate = (1 + (nominal rate / number of compounding periods))^(number of compounding periods)
Plugging in the values, we get:
Effective annual interest rate = (1 + (5.68% / 2))² = 1.028096
So, the effective annual interest rate for the nominal return option is approximately 2.81% (rounded to two decimal places).
Now, let's calculate the effective annual interest rate for the real return of 2.01% APR, compounded quarterly:
Effective annual interest rate = (1 + (real rate / number of compounding periods))^(number of compounding periods)
Plugging in the values, we get:
Effective annual interest rate = (1 + (2.01% / 4))^(4) = 1.020249
So, the effective annual interest rate for the real return option is approximately 2.03% (rounded to two decimal places).
Now, let's compare the effective annual interest rates:
- The nominal return option has an effective annual interest rate of 2.81%.
- The real return option has an effective annual interest rate of 2.03%.
Since the nominal return option has a higher effective annual interest rate, it would be better to earn a nominal return of 5.68% APR, compounded semiannually.
In conclusion, based on the calculations, it is preferable to earn a nominal return of 5.68% APR, compounded semiannually, as it provides a higher effective annual interest rate compared to the real return option of 2.01% APR, compounded quarterly.
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Requirement Prepare a bank reconciliation to determine how much cash Reese actually had at October 31 .
The actual cash balance of Reese at October 31 cannot be determined without the necessary information for a bank reconciliation.
To determine the actual cash balance of Reese at October 31, we need additional information to perform a bank reconciliation. A bank reconciliation involves comparing the bank statement balance with the company's records to identify and explain any differences. This process takes into account factors such as outstanding checks, deposits in transit, bank fees, and any other adjustments needed to reconcile the two balances. Without the necessary information for a bank reconciliation, we cannot determine the actual cash balance of Reese at October 31.
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The demand and supply for good X in India are given by: Demand: QD=100-2P Supply: QS= -20+2P The free-trade price of good X is pW = $15.
(a) Calculate the quantities supplied, demanded and imported into India under free trade.
The correct answer is under free trade, there is no quantity imported into India (Quantity Imported = 0).
To calculate the quantities supplied, demanded, and imported into India under free trade, we need to equate the demand and supply equations and then solve for the equilibrium price and quantity.
Given:
Demand: QD = 100 - 2P
Supply: QS = -20 + 2P
Free-trade price: pW = $15
Equating demand and supply:
QD = QS
100 - 2P = -20 + 2P
Adding 2P to both sides:
100 = -20 + 4P
Adding 20 to both sides:
120 = 4P
Dividing both sides by 4:
P = 30
Now we can substitute the equilibrium price (P = 30) into either the demand or supply equation to find the corresponding quantities.
Using the demand equation:
QD = 100 - 2P
QD = 100 - 2(30)
QD = 100 - 60
QD = 40
Using the supply equation:
QS = -20 + 2P
QS = -20 + 2(30)
QS = -20 + 60
QS = 40
The quantities supplied (QS) and demanded (QD) are both 40 units.
To calculate the quantity imported under free trade, we subtract the quantity supplied domestically from the quantity demanded:
Quantity Imported = QD - QS
Quantity Imported = 40 - 40
Quantity Imported = 0
Therefore, under free trade, there is no quantity imported into India (Quantity Imported = 0).
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How is the excel sheet suppose to look? How many sheet is there? Can you do it but this time showing just the excel document with the sheet(s) included along with the steps in the sheets?
In an Excel sheet, data is organized into rows and columns and sheets are used to keep track of different sets of data within a workbook. A workbook can contain several sheets, each of which has its own set of columns and rows. An Excel sheet is used to store numerical data, graphs, and text.
Here's how to create an Excel sheet with two sheets and steps in each sheet:
1. Open Microsoft Excel on your computer.
2. Click on the File tab, select New, and then click Blank workbook.
3. Rename Sheet 1 to Sales and Sheet 2 to Inventory by double-clicking on the Sheet tab.
4. In the Sales sheet, add the following headers in row 1: Sales Date, Product, Price, Quantity, and Total. In the next row, enter sample data for each column.
5. In the Inventory sheet, add the following headers in row 1: Product, Category, Quantity, and Price. In the next row, enter sample data for each column.
6. To switch between sheets, click on the Sheet tab at the bottom left corner of the screen and select the sheet you want to view.
7. You can now enter data in each sheet and use Excel's built-in functions to analyze your data.
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The finance director of Flatpack plc, a rapidly expanding company based in the UK, is considering how to hedge sales revenues of €45m, which are due to be received in 270 days. The company has been quoted the following exchange and interest rates by one of its banks:
Spot rate (€/£) 1.2655 – 1.2682
270 day forward rate (€/£) 1.2821 – 1.2843
Euro interest rate 2.0 % per annum
Sterling interest rate 1.25 % per annum
A foreign currency dealer at the bank has also privately provided the finance director with her own estimate of the €/£ spot rate in 270 days. Her estimate is 1.2725 – 1.2732.
Note: Assume there are 360 days in a year.
(i) Calculate the hedged value of the company’s euro receivables if Flatpack plc decides to: (a) use a forward market hedge to manage its foreign currency exposure; (b) use a money market hedge to manage its foreign currency exposure. (30 marks)
(ii) Explain to the finance director which hedging strategy is preferable for the company, and, holding all other information unchanged, calculate the forward exchange rate for €/£ under which the forward market hedge would yield an identical sterling value to the money market hedge for the company’s euro receivables. (15 marks)
(iii) Given the estimated €/£ spot rate provided by the foreign currency dealer, discuss, with reasons, whether or not the company should hedge the receipt of its euro receivables in this situation. (15 marks)
(iv) Distinguish between transaction risk, translation risk and economic risk and identify and discuss the various operational techniques available to managers that may be of assistance to them in managing exposure to transaction risk. (40 marks)
The company has been quoted spot and forward exchange rates by its bank, along with euro and sterling interest rates. A foreign currency dealer also provided an estimate of the future spot rate.
(i) (a) To hedge using a forward market hedge, the company can lock in a forward exchange rate of 1.2843 €/£ for the €45m receivables. This results in a hedged value of £35,051,250.
(b) To hedge using a money market hedge, the company can borrow £35,051,250 at the sterling interest rate of 1.25% for 270 days. Converting the borrowed amount at the spot rate of 1.2682 €/£, the company will have €27,621,951. Investing the euros in the euro interest rate of 2% for 270 days will yield a maturity value of €27,953,981. Converting the maturity value at the estimated spot rate of 1.2732 €/£, the hedged value in pounds is £21,936,943.
(ii) The preferable hedging strategy depends on comparing the hedged values. In this case, the money market hedge yields a higher hedged value (£21,936,943) compared to the forward market hedge (£35,051,250). To find the forward exchange rate that would result in an identical sterling value to the money market hedge, we equate the two hedged values and solve for the forward exchange rate, which is approximately 1.3993 €/£.
(iii) Considering the estimated spot rate provided by the foreign currency dealer (1.2725 – 1.2732 €/£), the decision to hedge the euro receivables depends on the finance director's assessment of the future spot rate. If the finance director believes the spot rate will be more favorable than the estimated range, it may be advantageous not to hedge and benefit from a potentially higher sterling value.
(iv) Transaction risk refers to the potential loss or gain resulting from fluctuations in exchange rates between the transaction date and settlement date. Translation risk relates to the impact of exchange rate fluctuations on the translation of foreign subsidiaries' financial statements into the parent company's reporting currency. Economic risk refers to the impact of exchange rate fluctuations on a company's overall competitiveness, market position, and profitability.
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List two explicit costs for you to go to Whistler for a weekend, and three implicit costs.
Whistler is a year-round mountain resort town located in British Columbia, Canada. It is well-known for its skiing and snowboarding in the winter and mountain biking in the summer. A weekend trip to Whistler can include a variety of explicit and implicit costs.
Explicit costs:Explicit costs are direct expenses that you pay for out of pocket. Two explicit costs of a weekend trip to Whistler are:Transportation: Transportation cost includes the cost of gas if you are driving or the cost of a flight, if you are taking a plane. The cost varies depending on the distance from your location to Whistler.Accommodation: The cost of accommodation is another explicit cost of a weekend trip to Whistler. It varies depending on the type of accommodation you choose, such as a hotel, a condo, or a chalet. It also varies depending on the location, time of year, and length of stay.Implicit costs:Implicit costs are indirect expenses that are not obvious or visible.
Three implicit costs of a weekend trip to Whistler are:Opportunity cost: Opportunity cost is the cost of missed opportunities. If you are spending money on a weekend trip to Whistler, you are giving up the opportunity to spend that money on something else, such as saving for a down payment on a house or investing in stocks.Time cost: Time cost is the cost of time lost. If you are spending time on a weekend trip to Whistler, you are giving up the opportunity to spend that time on something else, such as spending time with family or working on a project.
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Suppose one of the suppliers to Resolute Health Hospital offers terms of 3/14, net 45 .
How many days does the business have to pay its bill from this supplier in order to get the discount?
What is the approximate cost of the costly trade credit offered by this supplier?
Note: Assume 360 days per year; format for ' b ' is xx.x%
The cost of trade credit refers to the interest paid on the money borrowed. Trade credit is granted by a supplier to a customer. Suppliers often give credit periods of 15, 30, or 45 days to pay for a purchase.
Resolute Health Hospital is being offered a discount of 3/14, net 45 by its supplier.
This implies that the purchaser will obtain a 3% discount if they pay within 14 days of the invoice date, or else they will pay the entire amount within 45 days of the invoice date without receiving any discount.
How many days does the business have to pay its bill from this supplier in order to get the discount?
The buyer will receive the discount if they pay within 14 days of the invoice date.
Therefore, the company has 14 days to pay the supplier in order to get the discount.
What is the approximate cost of the costly trade credit offered by this supplier?
The formula for the cost of trade credit is; Cost of trade credit
= [(Discount %/ (100- Discount %) * (360/ (Payment days – Discount days))].
Therefore, Cost of trade credit= [(3/ (100-3) * (360/ (45-14)))].
Cost of trade credit= 29.22%.
Thus, the cost of the costly trade credit offered by this supplier is 29.22%.
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During its first month of operation, the Flower Landscaping Corporation, which specializes in residential landscaping completed the following transactions.
March 1 Began business by making a deposit in a company bank account of $72,000, in exchange for 7,200 shares of $10 par value common stock.
March 1 Paid the current month's rent, $4,500.
March 1 Paid the premium on a 1-year insurance policy, $3,300.
March 7 Purchased supplies on account from Parkview Company, $900.
March 10 Paid employee salaries, $2,200.
March 14 Purchased equipment from Hammond Company, $9,000. Paid $1,500 down and the balance was placed on the account. Payments will be $375.00 per month for 20 months. The first payment is due 4/1. (Note: Use accounts payable for the balance due).
March 15 Received cash for landscaping revenue for the first half of March, $4,896.
March 19 Made payment on account to Parkview Company, $450.
March 31 Received cash for landscaping revenue for the last half of March, $5,304.
March 31 Declared and paid a cash dividend of $1,000
Information for Preparing Adjusting J.E.s:
1) One month's insurance has expired
2) The remaining inventory is $475
3) The estimated depreciation of the equipment is $150.
Prepare Journal Entries for transactions in March.
The Flower Landscaping Corporation's journal entries for the transactions in March are as follows:
1. March 1: Debit Cash $72,000 and Credit Common Stock $72,000.
2. March 1: Debit Rent Expense $4,500 and Credit Cash $4,500.
3. March 1: Debit Prepaid Insurance $3,300 and Credit Cash $3,300.
4. March 7: Debit Supplies $900 and Credit Accounts Payable $900.
5. March 10: Debit Salaries Expense $2,200 and Credit Cash $2,200.
6. March 14: Debit Equipment $9,000 and Credit Accounts Payable $7,500 (balance due).
7. March 15: Debit Cash $4,896 and Credit Landscaping Revenue $4,896.
8. March 19: Debit Accounts Payable $450 and Credit Cash $450.
9. March 31: Debit Cash $5,304 and Credit Landscaping Revenue $5,304.
10. March 31: Debit Dividends $1,000 and Credit Cash $1,000.
In March, the Flower Landscaping Corporation engaged in various transactions, and these transactions are recorded through journal entries. The first transaction on March 1 involved the company making a deposit of $72,000 in exchange for issuing 7,200 shares of common stock. This is recorded as a debit to Cash and a credit to Common Stock.
Other transactions include the payment of rent expense, insurance premium, and employee salaries, which are debited to their respective expense accounts and credited to Cash. The purchase of supplies on account from Parkview Company is recorded as a debit to Supplies and a credit to Accounts Payable.
The purchase of equipment from Hammond Company involves a down payment of $1,500 and the remaining balance placed on the account. The down payment is recorded as a debit to Equipment and a credit to Cash, while the balance due is recorded as a debit to Accounts Payable.
The revenue received from landscaping services is recorded as a debit to Cash and a credit to Landscaping Revenue. Similarly, the payment made to Parkview Company on account is recorded as a debit to Accounts Payable and a credit to Cash.
Finally, the declaration and payment of a cash dividend is recorded as a debit to Dividends and a credit to Cash.
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The role of HR management emphasizes that the people in the organization are valuable resources representing significant organizational investments. a. human capital b. administrative c. operational d. strategic
The correct option is d. strategic. The role of HR management emphasizes that the people in the organization are valuable resources representing significant organizational investments.
It focuses on the strategic aspect of the organization. Human resource management (HRM) is the process of managing human resources in an organization. It is an integral part of the organization that is concerned with maximizing the productivity of employees in achieving the goals of the organization. The role of HR management emphasizes that the people in the organization are valuable resources representing significant organizational investments. It focuses on the strategic aspect of the organization.HR management plays a vital role in the organization by managing the workforce, recruiting, hiring, training, and retaining employees. It also includes performance management, compensation, and benefits administration, and creating a safe and productive work environment. HR management emphasizes the strategic aspect of the organization by aligning the objectives of the organization with the goals of the employees. This can be done by creating a positive work culture, providing opportunities for growth and development, and promoting employee engagement. In conclusion, HR management is a critical function that emphasizes the strategic aspect of the organization and the importance of managing human resources effectively.
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Let S0=1. Consider a derivative Zt written on the stock which only pays at a prespecified maturity T and has the following payoff:
ZT={ST3,0, if if ST≥K,ST0
is a constant agreed upon at time 0 . Draw the payoff diagram of this derivative. Find Z0, the price of this derivative at time 0 . [10 marks]
The answer to the given problem is that the payoff diagram of the given derivative is a plain vanilla call option with strike price K, and the price of the derivative at time 0,
Z0 is e⁻ʳᵀ × [(µ - ln(K)) / σ - 0.5σ] × (e^(µ+0.5σ²)×(K) - K)³.
The answer to the given problem is as follows: Consider a derivative Zt written on the stock which only pays at a pre-specified maturity T and has the following payoff:
ZT={ST3,0, if if ST≥K,ST0,
where ST0 is a constant agreed upon at time 0 .Payoff diagram of the derivative:
ZT= max(ST - K, 0) is a plain vanilla call option with strike price K. Hence, the payoff diagram would look like:
Payoff diagram
Price of the derivative at time 0,
Z0 = e⁻ʳᵀ × Expected Payoff
Expected Payoff = Prob(ST ≥ K) × (ST - K)³ + Prob(ST < K) × 0
If we assume that the stock price follows lognormal distribution, i.e.
ST ~ lnN(µ, σ²),
then, ST - K ~ lnN(µ - ln(K), σ²)
Prob(ST ≥ K) = N(d₂)
= N((µ - ln(K)) / σ - 0.5σ)
Prob(ST < K) = 1 - Prob(ST ≥ K)
= N(-d₂)
= N(-(µ - ln(K)) / σ - 0.5σ)
Expected Payoff = [N(d₂) × (e^(µ+0.5σ²)×(K) - K)³] + [N(-d₂) × 0]
Expected Payoff = [N(d₂) × (e^(µ+0.5σ²)×(K) - K)³]
= [(µ - ln(K)) / σ - 0.5σ] × (e^(µ+0.5σ²)×(K) - K)³
Price of the derivative at time 0,
Z0 = e⁻ʳᵀ × Expected Payoff
= e⁻ʳᵀ × [(µ - ln(K)) / σ - 0.5σ] × (e^(µ+0.5σ²)×(K) - K)³
Therefore, the answer to the given problem is that the payoff diagram of the given derivative is a plain vanilla call option with strike price K, and the price of the derivative at time 0,
Z0 is e⁻ʳᵀ × [(µ - ln(K)) / σ - 0.5σ] × (e^(µ+0.5σ²)×(K) - K)³.
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Explain how Tolokazi can implement the three dimensions of
traceability for their products within their supply chain
Tolokazi can implement the three dimensions of traceability by assigning unique identification codes to products, implementing a robust data collection system, and promoting information sharing and transparency within their supply chain.
1. Product Identification: Tolokazi can assign a unique identification code or tag to each product within their supply chain. This code can be a barcode, QR code, or RFID tag that contains specific information about the product, such as its origin, manufacturing date, and batch number. This will enable Tolokazi to track and trace the movement of each product throughout the supply chain.
2. Data Collection and Recording: Tolokazi should implement a robust data collection and recording system to capture relevant information at each stage of the supply chain. This can be done through the use of automated systems, such as RFID readers or mobile apps, that collect data in real-time. The collected data should include details such as transportation information, storage conditions, and handling procedures. By recording this information, Tolokazi can ensure transparency and accountability within their supply chain.
3. Information Sharing and Transparency: Tolokazi should establish a communication network that allows for the sharing of traceability information with relevant stakeholders, including suppliers, distributors, and customers. This can be done through the use of a centralized database or a cloud-based platform where stakeholders can access and verify the traceability data. By promoting transparency and open communication, Tolokazi can build trust and confidence in their products among customers and other stakeholders.
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8.
The "GDP deflator" is used to measure inflation reflected in the price increases of goods and services purchased by a country's consumers
True
False
The statement "The "GDP deflator" is used to measure inflation reflected in the price increases of goods and services purchased by a country's consumers" is false.
The GDP deflator is an economic indicator that measures the inflation rate in an economy by comparing the nominal gross domestic product (GDP) to the real GDP. The GDP deflator is used to adjust GDP for price increases, and it is often viewed as a broad measure of an economy's price level. The GDP deflator is calculated by dividing nominal GDP by real GDP and multiplying by 100.
The statement "The "GDP deflator" is used to measure inflation reflected in the price increases of goods and services purchased by a country's consumers" is false because it measures the general price level of the economy, not just the price increases of goods and services purchased by consumers. It considers the changes in the prices of all goods and services that are produced within an economy.
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Week 4 Tutorial - Problem: DM Campbell Art Supplies Following from the 10 business transactions that DM Campbell Art Supplies posted in June, DM Campbell Art Supplies recorded the following transactio
The information about 10 business transactions of DM Campbell Art Supplies was presented earlier, and this transaction is about recording 2 more transactions. Therefore, the double-entry for this transaction will be:Debit: Accounts Receivable $ 320Credit: Sales $ 32. Following is the explanation of these transactions:
Transaction 11: Paid wages of $ 1800 for June from cheque # 304DM Campbell Art Supplies paid the wages of $ 1800 for June to the employees. The payment is made from cheque # 304. The expense account (Wages Expense) will be debited as the wages are an expense for the business. The credit goes to the Liability account (Wages Payable), as the payment has been made for the amount that was payable to the employees for the previous month.Transaction 12: Sold art supplies on account to Mike Smith, $320, Sales Invoice # 162Art supplies worth $ 320 were sold to Mike Smith on account.
As the supplies are sold on credit, the amount is not received in cash, and it remains receivable from the customer. The Sales account is credited with $ 320, as it is the revenue generated from the sale. The debit goes to the Asset account (Accounts Receivable), as the amount will be received from Mike Smith later.
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What is the Beta of Firm B? \( 1.00 \) \( 1.17 \) \( 1.71 \) \( 2.00 \) None of the above
The beta of a firm measures the volatility or systematic risk of its stock compared to the overall market. It helps investors understand how much a stock's price tends to move in relation to the market as a whole.
A beta of 1.00 means that the stock's price is expected to move in line with the market. A beta greater than 1.00 indicates that the stock is more volatile than the market, while a beta less than 1.00 suggests that the stock is less volatile than the market.Given the options provided, the correct answer is "None of the above" because the question does not provide any information about Firm B's beta.
To determine the beta of Firm B, we would need specific financial data and perform a calculation using a regression analysis or obtain the information from a reliable source.Given the options provided, the correct answer is "None of the above" because the question does not provide any information about Firm B's beta. In conclusion, without more information, we cannot determine the beta of Firm B from the given options.
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Use the following information to prepare the July cash budget for Acco Company. Ignore the "Loan activity" section of the budget a. Beginning cash balance on July 1: $68,000. b. Budgeted cash receipts from sales: 35% is collected in the month of sale, 50% in the next month, and 15% in the second month after sale. Sales amounts are May (actual), $1,980,000; June (actual), $1,380,000; and July (budgeted). $1,400,000. c. Budgeted cash payments on merchandise purchases: 50% in the month of purchase and 50% in the month following purchase. Purchase amounts are June (actual), $410,000; and July (budgeted), $430,000. d. Budgeted cash payments for salaries in July: $120,000. e. Budgeted cash payments for sales commissions for July: $250,000. f. Budgeted cash payment for income taxes in July: $60,000. g. Budgeted cash payment for loan interest in July: $8,000. Complete this question by entering your answers in the tabs below. Calculate the budgeted cash receipts and cash payments. Calculate the budgeted cash receipts and cash payments. Prepare the July cash budget for Acco Combanv.
The correct answers are: a. Beginning cash balance on July 1: $68,000. b. Budgeted cash receipts from sales: $1,477,000. c. Budgeted cash payments on merchandise purchases: $420,000. d. Budgeted cash payments for salaries in July: $120,000. e. Budgeted cash payments for sales commissions for July: $250,000. f. Budgeted cash payment for income taxes in July: $60,000. g. Budgeted cash payment for loan interest in July: $8,000.
To prepare the July cash budget for Acco Company, we need to calculate the budgeted cash receipts and cash payments. Here are the calculations:
a. Beginning cash balance on July 1: $68,000
b. Budgeted cash receipts from sales:
- May sales (actual): $1,980,000 * 15% = $297,000 (collected in July)
- June sales (actual): $1,380,000 * 50% = $690,000 (collected in July)
- July sales (budgeted): $1,400,000 * 35% = $490,000 (collected in July)
Total cash receipts = $297,000 + $690,000 + $490,000 = $1,477,000
c. Budgeted cash payments on merchandise purchases:
- June purchases (actual): $410,000 * 50% = $205,000 (paid in July)
- July purchases (budgeted): $430,000 * 50% = $215,000 (paid in July)
Total cash payments = $205,000 + $215,000 = $420,000
d. Budgeted cash payments for salaries in July: $120,000
e. Budgeted cash payments for sales commissions for July: $250,000
f. Budgeted cash payment for income taxes in July: $60,000
g. Budgeted cash payment for loan interest in July: $8,000
Now we can prepare the July cash budget for Acco Company:
Cash Receipts:
Beginning cash balance: $68,000
Cash receipts from sales: $1,477,000
Total cash available: $1,545,000
Cash Payments:
Cash payments for merchandise purchases: $420,000
Cash payments for salaries: $120,000
Cash payments for sales commissions: $250,000
Cash payments for income taxes: $60,000
Cash payments for loan interest: $8,000
Total cash payments: $858,000
Ending cash balance: Total cash available - Total cash payments
$1,545,000 - $858,000 = $687,000
The July cash budget for Acco Company shows an ending cash balance of $687,000.
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