Answer:Please refer to Explanation
Explanation:
Cross Price Elasticity of Demand is a very useful tool in Economics to ascertain if goods are compliments or Substitutes.
Cross Price Elasticity of Demand (CPSD) measures the change in demand in one good due to a change in price is the other good.
If the CPSD is negative then the goods are Compliments meaning that they are used together which is why when the price of one good goes down, the demand of the compliment goes up because more of the original good will be bought due to the lower price.
If the CPSD is Positive, it means that they are Substitutes and a Decrease in price in one good leads to a decrease in demand for the other good because people will demand less of it and switch to the former (now cheaper) good.
The formula is,
= % change in Quantity Demanded of Product A /% change in Price of Product B
a. Splishy splashies and Flopsicles
CPSD = -18%/-1%
= 18%
The CPSD for both these products is 18% which is a positive figure. This means that they are Substitutes and should not be marketed together.
b. Splishy Splashies and Flopsicles
CPSD = 3%/-1%
= -3%
With the CPSD being a negative figure here, these goods are Compliments.
Splishy Splashies and Flopsicles should be Marketed together as they compliment each other.
A purchasing manager's performance is best evaluated using information such as:_______
a. price and terms bargaining effectiveness, achievement of quality goals, and direct materials price variance
b. direct materials flexible-budget variance
c. usage efficiency and direct materials price variance
d. direct manufacturing labor flexible-budget variance
Answer:
A
Explanation:
price and terms bargaining effectiveness, achievement of quality goals, and direct materials price variance
purchasing evaluation provides feedback to the purchasing department on the effectiveness of an organzations purchasing strategies and effectiveness. The obvious performance measure of the success of this department is the amount of money saved by the organization. Purchasing effectiveness can be assessed by reviewing inventory turnover ratio.
bargaining effectively with suppliers is a reason for favorable material price variance
The fiscal year-end unadjusted trial balance for Garcia Company is found on the trial balance tab. Rent expense and salaries expense are equally divided between selling activities and general and administrative activities. Garcia Company uses a perpetual inventory system. Descriptions of items that require adjusting entries on January 31, 2019, follow.
1. Store supplies still available at the fiscal year-end amount to $2,150.
2. Expired insurance, an administrative expense, for the fiscal year is $1,560.
3. Depreciation expense on store equipment, a selling expense, is $6,700 for the fiscal year.
4. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,150 of inventory is still available at fiscal year-end.
Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2017. (Round your answers to 2 decimal places.)
The following unadjusted trial balance is prepared at fiscal year-end for Garcia Company:
Cash $1,000
Merchandise Inventory 12,500
Store supplies 5,800
Prepaid Insurance 2,400
Store equipment 42,900
Accumulated depreciation - Store equipment $15,250
Accounts payable 10,000
Common Stock 5,000
Retained Earnings 27,000
Dividends 2,200
Sales 111,950
Sales discounts 2,000
Sales returns and allowances 2,200
Cost of goods sold 38,400
Depreciation express - Store equipment 0
Salaries expense 35,000
Insurance expense 0
Rent expense 15,000
Store supplies expense 0
Advertising expense 9,800
Totals $169,200 169,200
Answer:
Garcia Company
Computation of:
a) Current Ratio = Current Assets/Current Liabilities = $14,140/$10,000 = 1.4
b) Acid- Test Ratio = (Current Assets - Inventory - Prepaid Insurance - Stores Supplies )/Current Liabilities = ($14,140 - 10,150 - 2,150 - 840)/$10,000 = 0.1
Here, we disregarded Inventory, Prepaid Insurance, and Stores Supplies from the current assets because they are difficult to recover in order to settle short-term debts. So, only the Cash Balance was used for the calculation.
c) Gross Margin Ratio = Gross Profit/Net Sales x 100 = $69,350/$107,750 x 100 = 64.4%.
Explanation:
Adjusting Items:
a. Store Supplies:
Per Trial Balance $5,800
less year-end balance $2,150
Store Supplies Expense $3,650
b. Prepaid Insurance:
Per Trial Balance $2,400
less expired $1,560
Insurance Expense $840 (Admin Expense)
c. Accumulated Depreciation:
Per Trial Balance $15,250
Depreciation Expense $6,700
Accumulated depreciation at year-end $21,950
d. Ending Inventory $10,150
e. Adjusted Trial Balance:
Cash $1,000
Merchandise Inventory 12,500
Store supplies 2,150
Prepaid Insurance 840
Store equipment 42,900
Accumulated depreciation - Store equipment $21,950
Accounts payable 10,000
Common Stock 5,000
Retained Earnings 27,000
Dividends 2,200
Sales 111,950
Sales discounts 2,000
Sales returns and allowances 2,200
Cost of goods sold 38,400
Depreciation expense - Store equipment 6,700
Salaries expense 35,000
Insurance expense 1,560
Rent expense 15,000
Store supplies expense 3,650
Advertising expense 9,800
Totals $175,900 175,900
f. Income Statement
Sales $111,950
Sales discounts (2,000)
Sales returns and allowances (2,200)
Net Sales $107,750
Cost of Goods Sold 38,400
Gross Profit $69,350
Selling Expenses:
Depreciation $6,700
Salaries expense 17,500
Rent expense 7,500
Store supplies expense 3,650
Advertising expense 9,800 (45,150)
Administrative Expenses:
Insurance $1,560
Salaries expense 17,500
Rent expense 7,500 (26,500)
Net Loss ($2,360)
Inventory Shrinkage ($2,350)
Retained Earnings b/f 27,000
Dividends (2,200)
Retained Earnings c/f $20,090
g) Balance Sheet
Assets:
Cash $1,000
Merchandise Inventory 10,150
Store supplies 2,150
Prepaid Insurance 840 $14,140
Store equipment 42,900
Accumulated depreciation (21,950 ) $20,950
Total Assets $35,090
Liabilities + Equity:
Accounts payable $10,000
Common Stock 5,000
Retained Earnings 20,090
Total Liabilities + Equity $35,090
h) Current Ratio: According to investopedia.com, "The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year," showing investors and analysts how a company can maximize its current assets to meet its current debt and other payables.
i) Acid-test or quick ratio is the financial ratio that compares a company's most short-term assets to its most short-term liabilities to see if a company has enough cash to pay its immediate liabilities, such as short-term debts, disregarding difficult-to-liquidate current assets such as inventory.
j) The gross margin ratio represents a percentage of the gross profit over the net sales, multiplied by 100. This ratio is also known as the gross profit margin or the gross profit percentage, or simply the gross margin.
Arbitrage and spot exchange rates
Suppose you trade dollars and euros for a bank that has branches in Los Angeles and Frankfurt. You can electronically transfer the funds between the two branch locations at no cost, and trading commissions are negligible. The current dollar-per-euro exchange rate in Los Angeles is E$/EURLA=1.5952E$/EURLA=1.5952 , while in Frankfurt, it is E$/EURFR=1.6244E$/EURFR=1.6244. You can make a profit for the bank if you buy euros in________and sell them in_______. Assuming other foreign exchange traders face the same exchange rates you do, they will buy dollars in and sell them in_______. As a result, the dollar-per-euro exchange rate in Frankfurt (E$/EURFRE$/EURFR) will______, and the dollar-per-euro exchange rate in Los Angeles (E$/EURLAE$/EURLA) will________.
Answer:
1. buy in Los Angeles, sell in Frankfurt
2. buy in Frankfurt; sell in Los Angeles
3. remain unchanged
Explanation:
Note that as for me working for the bank I'm buying Euros, in turn to sell to receive the Dollar.
1. Thus, in Los Angeles the exchange rate indicates a profit if it is bought there and sold in Frankfurt where the Euros values more than it does in Los Angeles.
2. For the foreign exchange traders who already own Euros and want to buy dollars, they would make a profit by buying Dollars in Frankfurt where the Euros has greater and value and selling the bought dollars in Los Angeles where the dollar has greater value.
3. This is the case because there's a balance in demand as a result of the arbitrage trading.
You found your dream vacation cottage in the mountains and your offer of $78,000 was accepted. You plan to put 20% down and will roll the closing costs of $3,500 into the mortgage. Congratulations, your 15 year mortgage has been approved at an interest rate of 4.125%. (You must use the attached Excel loan amortization schedule). How much are you financing
Answer:
The amount of finance is $65,900
Explanation:
The amount of financing is the amount of the loan given by the mortgage finance provider which in this case is the cost of the property minus down payment plus closing costs.
cost of property is $78,000
downpayment is 20% of the property cost=20%*$78,000=$15,600
closing costs is $3,500
the amount of finance=$78,000-$15,600+$3,500=$65,900
Janet and James purchased their personal residence 15 years ago for $300,000. For the current year, they have an $80,000 first mortgage on their home, on which they paid $5,750 in interest. They also have a home equity loan to pay for the children’s college tuition secured by their home with a balance throughout the year of $150,000. They paid interest on the home equity loan of $9,000 for the year. Calculate the amount of their deduction for interest paid on qualified residence acquisition debt and qualified home equity debt for the current year. If your answer is zero, enter "0".a. Qualified residence acquisition debt interest $b. Qualified home equity debt interest $
Answer:
a. Qualified residence acquisition debt interest
$5,750b. Qualified home equity debt interest
$0Explanation:
Qualified residence interest deduction includes all interests on debt related to building, acquiring or improving your primary residence.
Before 2018, any interests on home equity loans were deductible, but not anymore. Only those interests on equity loans used to improve your existing home (build or remodel) qualify as deductible home equity debt interest. If the debt was taken before 2018, you can still deduct the interests even if it was used for paying college tuition, but since we are not given any dates here, we must assume it was a new debt.
Tristan Narvaja, S.A. (C). Tristan Narvaja, S.A., is the Uruguayan subsidiary of a U.S. manufacturing company. Its balance sheet for January 1 is shown in the popup window, B. The January 1 exchange rate between the U.S. dollar and the peso Uruguayo ($U) is $U22/$. A. Determine Tristan Narvaja's contribution to the translation exposure of its parent on January 1, using the current rate method. B. Calculate Tristan Narvaja's contribution to its parent's translation gain or loss if the exchange rate on December 31st is $U15/$. Assume all peso Uruguayo accounts remain as they were at the beginning of the year. Balance Sheet (thousands of pesos Uruguayo, $U) Assets Liabilities and Net Worth Cash $U60,000 Current liabilities $U30,000 Accounts receivable 110,000 Long-term debt 50,000 Inventory 150,000 Capital stock 270,000 Net plant & equipment 240,000 Retained earnings 210,000 $U560,000 $U560,000
Answer:
Kindly check attached picture
Explanation:
Kindly check attached picture for detailed explanation
You pay $23,100 to the Laramie Fund, which has a NAV of $21 per share at the beginning of the year. The fund deducted a front-end load of 5%. The securities in the fund increased in value by 10% during the year. The fund's expense ratio is 1.6% and is deducted from year-end asset values. What is your rate of return on the fund if you sell your shares at the end of the year
Answer:
2.83%
Explanation:
Actual initial investment=$23,100-5% front-end load=$23,100-(5%*$23100)=$21,945.00
The number of shares= 21,945.00/$21=1045 shares
The securities increased in value by 10% i.e $21 increased by 10%
new security value=$21*(1+10%)=$23.1 0
If the shares were sold at end of the year the cash receivable by the investor is computed thus:
cash=new security value*number of shares-1.6% expense ratio
cash =23.10*1045=$24,139.50
cash paid to investor= 24,139.50-( 24,139.50*1.6%) =$23,753.27
rate of return=cash received-cash invested/cash invested= (23,753.27-23,100)/23100
The Second Circuit and Eleventh Circuit Courts of Appeal affirmed dismissal of securities fraud claims because the plaintiffs did not adequately plead scienter under the standard imposed by the Private Securities Litigation Reform Act of 1995. Scienter is defined as which of the following?(a) The standard of reasonableness required of a prudent person in the management of his affairs(b) An untrue statement of a material fact(c) The intent to deceive, manipulate, or defraud(d) The failure to maintain due diligence during the issuance of new securities known as an IPO
Answer:
Option C
Explanation:
In simple words, scienter relates to the psychological condition where one is conscious that his or her acts, words, etc., are false, dishonest or unlawful: sometimes seen as a presumption of guilt. Scienter can be defined as the legal term as well for malicious intentions or knowledge and understanding.
An offending entity then has prior information of an act or event's "wrongness" before actually perfroming it. For instance if an individual sells his friend an old car with car brakes that don't work but the seller doesn't know at all about the brake pad problem, then the seller doesn't have a scienter.
A preferred stock will pay a dividend of $1.25 in the upcoming year and every year thereafter; i.e., dividends are not expected to grow. You require a return of 12% on this stock. Use the constant growth DDM to calculate the intrinsic value of this preferred stock. Multiple Choice $11.82 $10.42 $11.56 $9.65
Answer:
$10.42
Explanation:
The computation of the intrinsic value of this preferred stock using the DDM method is shown below:
= Annual dividend ÷ required rate of return
where,
The Annual dividend is $1.25
And, the required rate of return is 12%
Now placing these values to the above formula,
So, the intrinsic value of the preferred stock is
= $1.25 ÷ 0.12
= $10.42
Hence, the second option is correct
Research suggests that people just care about getting a paycheck out of their jobs.
1. True
2. False
What people want out of their jobs is as varied as the jobs themselves.
1. True
2. False
Jane is extremely organized and efficient in her job as an assistant. She is so effective that she is offered a promotion to management, but she turns it down flatly, saying that she has no interest in moving up the ladder, that she is happy doing what she does because of the people she works with. What she needs from work is:________.
1. safety.
2. belongingness
3. power.
4. esteem
Answer (1)
False
Explanation:
Getting a paycheck is not what most people want out of their job, studies have shown that some people, contrary to the general believe actually look for other things asides paycheck from their jobs. Some of these factors that encourages people into finding fulfillment in their jobs includes permanent flexibility of the working time, commitment into to health and well being of the staffs by the employer of these people, etc. This factors creates a sense of purpose in the workers, encouraging them to put their body and soul into the job without thinking too much about the paycheck.
Answer (2)
True
Explanation:
Different people have different reasons for working, although some just work for the paycheck, others are driven by a sense of purpose among other things. To some people, the work setting provides a sort of belonging and gives them the impression of working in a team, which is what most people actually want.
Answer (3)
2. Belongingness
Explanation:
As stated, some workers just want the setting that provides a sense of belonging and security within a team. This type of workers are not too concerned with the paycheck increase that comes with a promotion if it takes them away from their perceived team.
Accounting for notes receivable and accruing interest
Carley Realty loaned money and received the following notes during 2018.
Note Date Principal Amount Interest rate term
1. April 1 $6000 7% 1 year
2. Sept 30 $12000 6% 6 month
3. Sept 19 $18000 8% 90 days
Requirements1. Determine the maturity date and maturity value of each note.2. Journalize the entries to establish each Note Receivable and to record collection of principal and interest at maturity. Include a single adjusting entry on December 31, 2018, the fiscal year-end, to record accrued interest revenue on any applicable note. Explanations are not required. Round to the nearest dollar.
Answer: Please see below
Explanation:
Maturity dates
I year after April 1st 2018 = April 1st 2019
6 months after sept 30 2018 = March 30, 2019
90 days after september 19= December 18 2018
Maturity value of each note
note 1
Principal = 6000
Interest= 7%
period= 6months
interest earned= 6000 x 7% x 12/12 = 420
Maturirty value = principal + interest= 6000 + 420= $6,420
note 2
Principal = 12,000
Interest= 6%
period= 6months
interest earned= 12000 x 6% x 6/12 = 360
Maturirty value = principal + interest = $12,360
note 3
Principal = 18000
Interest= 8%
period= 90 days
interest earned= 18000 x 8% x 90/360 = 360
Maturirty value = principal + interest = $18,360
interest revenue accured from the three notes = $420 + $360+360
=$1140
on April 1st 2018
Account Debit Credit
Notes 1 receivable $6, 000
Cash collected $6,000
september 30, 2018
Notes 2 receivable $12,000
Cash collected $12,000
September 19, 2018
Notes 3 receivable $18,000
Cash collected $18,000
December 31st 2018
Interest receivable $1140
interest revenue $1140
Rachelle purchased a warehouse 19 years ago in the month of September. The purchase price was $400,000. In May of the current year (year 20), Rachelle sold the warehouse. She will be able to deduct $ for depreciation on the warehouse in the year of sale. (Round your answer to the nearest whole dollar.)
What are tax credits?
Your adjustments, deductions, and exemptions reduce your taxable income. Tax credits, on the other hand, are directly applied to the tax that you pay. You may take tax credits regardless of whether you itemize deductions. Many credits are limited, based on income levels, so the amount of a credit may be reduced for high-income taxpayers.
The following statement refers to refundable or nonrefundable tax credits. A tax credit that reduces your income tax liability to below zero with the excess being returned to you is___________ .
Answer: Refundable Tax Credit
Explanation:
When a tax credit is able to reduce your tax liability to below zero and then the remainder is returned to you, that is a Refundable Tax Credit. For Instance, if you get a Refundable tax credit from the IRS of $300 and your Tax Liability is $250 then not only do you not have to pay the liability but the IRS will give you $50 which is the remainder after the tax credit reduced the liability to $0.
If you have $0 in Liability, you can still apply for a Refundable Tax Credit which means that you will be paid the whole thing.
Some people therefore first calculate their taxes and then remove the deductions and apply for Non-refundable tax credits and then when their liability is at the lowest, they apply for a Refundable Tax Credit which then means that they can stand a chance to get something from the IRS.
A profit-maximizing firm will use more of a factor of production when: The extra cost of using an additional factor unit is less than the marginal revenue product of the additional factor unit. The marginal physical product of the additional factor unit is greater than the marginal revenue product (MRP) of the additional factor unit. The marginal physical product of the additional factor unit is less than the marginal revenue product of the additional factor unit. The extra cost of using an additional factor unit is less than the marginal physical product of the additional factor unit.
Answer:
The extra cost of using an additional factor unit is less than the marginal revenue product of the additional factor unit.
Explanation:
A profit maximizing firm will continue to use more factors of production as long as the cost of the extra factors of production is equal to or less than the marginal revenue product. Marginal revenue product refers to the additional revenue generated by employing extra units of factors of production. It is calculated by multiplying the marginal product (the number of extra units produced) times the selling price of the extra units produced.
E.g. a firm that produces chairs will continue to increase its production level as long as the cost of direct labor, materials and variable manufacturing overhead is less or equal to the selling price of the chairs.
A profit maximizing firm is going to use more of a factor of production when The extra cost of using an additional factor unit is less than the marginal revenue product of the additional factor unit.
The correct answer is option A.
The reason for this answer is the fact that we have the condition where
MC = MRP
Marginal cost is equal to the Marginal revenue product.
The firm is going to produce more given the fact as more output revenue is more than cost.
The additional cost of another factor is Marginal cost, MC.
Here extra cost of using another factor = MC
given that WR = MC where wage is a cost,
Then the WR is greater than MRP hiring an additional worker would result in less revenue. So workers have to be hired less till we arrive at MR=MRP.
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Suppose that Company A requires that its employees complete a time-consuming training sequence upon being hired. Providing this training is expensive for Company A so it does not want to lose employees its invested in. To entice employees to stay, Company A pays its workers above market wage. Which of the following models does this scenario illustrate?
a) the implicit contract model
b) the adverse selection of wage cuts argument
c) efficiency wage theory
d) the relative wage coordination argument
Answer:
Presenta Don Quijote de la Mancha: autor,
fechas, tema, personajes.
2. Relata las diferentes etapas de la historia
de don Quijote de la Mancha.
3. Elige un adjetivo para calificar a don Quijote
y a Sancho Panza y justifica: aventurero,
razonable, loco, heroico, te
Explanation:
Presenta Don Quijote de la Mancha: autor,
fechas, tema, personajes.
2. Relata las diferentes etapas de la historia
de don Quijote de la Mancha.
3. Elige un adjetivo para calificar a don Quijote
y a Sancho Panza y justifica: aventurero,
razonable, loco, heroico, te
Presenta Don Quijote de la Mancha: autor,
fechas, tema, personajes.
2. Relata las diferentes etapas de la historia
de don Quijote de la Mancha.
3. Elige un adjetivo para calificar a don Quijote
y a Sancho Panza y justifica: aventurero,
razonable, loco, heroico, te
Crispy Fried Chicken bought equipment on January 2, 2016, for $ 18 comma 000. The equipment was expected to remain in service for four years and to perform 3 comma 000 fry jobs. At the end of the equipment's useful life, Crispy estimates that its residual value will be $ 3 comma 000. The equipment performed 300 jobs the first year, 900 the second year, 1 comma 200 the third year, and 600 the fourth year. Requirements 1. Prepare a schedule of depreciation expense, accumulated depreciation, and book value per year for the equipment under the three depreciation methods. Show your computations. Note: Three depreciation schedules must be prepared. 2. Which method tracks the wear and tear on the equipment most closely?
Answer:
Please check the attached image for the depreciation schedule
2. Units of production method
Explanation:
Book value in year 1 = Cost of asset - Depreciation expense of year 1
Book value in year in subsequent years = previous book value - that year's depreciation expense
Accumulated depreciation is sum of deprecation expense
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($18,000 - $3,000) / 4 = $3,750
Depreciation expense each year of the useful life is $3,750
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Deprecation factor = 2 x (1/useful life) = 0.5
Depreciation expense in year 1 = 0.5 x $18,000 = $9,000
Book value = $18,000 - $9,000 = $9,000
Depreciation expense in year 2 = 0.5 × $9,000 = $4,500
Book value = $9,000 - $4,500 = $4,500
Depreciation expense in year 3 = 0.5 x $4,500 = $2250
Book value = $4,500 - $2250 = $2250
Depreciation expense in year 4 = 0.5 × $2250 = $1125
Depreciation expense using the unit of production method =( Total production in the year/ total productive capacity) × (cost of asset - Salvage value)
Depreciation expense in year 1 = ($18,000 - $3,000) x (300 / 3000) = $1,500
Depreciation expense in year 2 =18,000 - $3,000) x (900 / 3000) = $4,500
Depreciation expense in year 3 = (18,000 - $3,000) x (1200 / 3000) = $6,000
Depreciation expense in year 3 = (18,000 - $3,000) x (600 / 3000) = $3,000
The Units of production method tracks wear and tear accurately because deprecation depends on the production each year.
I hope my answer helps you
In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in calculating the cash break-even. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)Case Unit Price Unit Variable Cost Fixed Costs Depreciation1 $2,800 $2,295 $7,000,000 $1,250,000 2 51 43 65,000 160,000 3 12 4 1,800 700 Case Accounting break-even Cash break-even1 2 3
Answer:
FIRST CASE;
Accounting Break even = $13,094
Cash break even = $10,394
SECOND CASE;
Accounting Break even = $6,870
Cash break even = $1,387
THIRD CASE;
Accounting Break even = $189
Cash break even = $15
Explanation;
#Accounting break even point refers to the level of sales whereby a business generates exactly zero profits, i.e volume of sales or revenue exactly equals total expenses.
It can be calculated using below formula;
Accounting Break even = (Fixed cost per unit + depreciation) ÷ (unit price per unit - variable cost per unit)
#The cash break-even point provide a minimum amount of revenue of a firm generated from sales that are needed to provide positive cash flow.
It can be calculated using the below formula;
Cash break even = Fixed cost ÷ (selling price per unit - variable cost per unit )
FIRST CASE:
Accounting Break Even = ( 1,850,000 + $7,120,000) ÷ (3,340 - 2655) = 13,094unit
Cash Break Even = ($7,120,000) ÷ (3,340 - 2655)
= 10,394
SECOND CASE;
Accounting Break even = ($86,000 + $340,000) ÷ (141 - 79)= 6870
Cash break even = ($86,000) ÷ (62)= 1,387
THIRD CASE;
Accounting Break even = ($3,600 + 760) ÷ (30 - 7)= 189
Cash break even = ($3,600) ÷ (30 - 7) = 156
1. Cecilia’s grandfather set up a savings account for her with a $25,000 gift when she was born. The account accumulated interest annually at a rate of 6% per year and no other deposits were made to the account. Cecilia is 21 years old today. To date, how much has accumulated in the account?
Answer:
The accumulated amount in the account = $84,989.09
Explanation:
The amount that has been accumulated in the account is the future value of 25,000 invested invested at 6% interest compounded annually .
FV = PV × (1+r)^n
Future Value(FV) = ?, Present Value(PV) - 25,000, rate(r)- 6%, number of years(n)-21
FV = 25,000× (1.06)^21
FV = $84,989.09
The accumulated amount in the account = $84,989.09
The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking up." As a result, the cemetery project will provide a net cash inflow of $87,900 for the firm during the first year, and the cash flows are projected to grow at a rate of 5 percent per year forever. The project requires an initial investment of $1,400,000.
What is the NPV for the project if Yurdone's required return is 10 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
If Yurdone requires a return of 10 percent on such undertakings, should the firm accept or reject the project?
The company is somewhat unsure about the assumption of a 5 percent growth rate in its cash flows. At what constant growth rate would the company just break even if it still required a return of 10 percent on investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
What is the NPV for the project if Yurdone's required return is 10 percent?
$358,000If Yurdone requires a return of 10 percent on such undertakings, should the firm accept or reject the project?
Yes, because the project's NPV is positive, which means that its IRR is higher than the required rate of return.At what constant growth rate would the company just break even if it still required a return of 10 percent on investment?
3.72%Explanation:
initial investment = $1,400,000
net cash inflow₁ = $87,900
perpetual growth rate = 5%
required rate of return = 10%
project's current intrinsic value = $87,900 / (10% - 5%) = $1,758,000
project's NPV = $1,758,000 - $1,400,000 = $358,000
$1,400,000 = $87,900 / (10% - g)
$1,400,000(10% - g) = $87,900
$140,000 - $1,400,000g = $87,900
$140,000 - $87,900 = $1,400,000g
$52,100 = $1,400,000g
g = $52,100 / $1,400,000 = 3.72%
agricultural workers and industrial laborers were almost the same number a) during 1850 b) during 1880 c) during 1890 d) during 1870
Answer:
I'm not 100% but I strongly believe it is A. as after the Civil War post 1860's the Industrial Revolution took over the nation and a majority of laborers/workers were doing Industrial work.
Explanation:
Walberg Associates, antique dealers, purchased the contents of an estate for $39,100. Terms of the purchase were FOB shipping point, and the cost of transporting the goods to Walberg Associates warehouse was $2,000. Walberg Associates insured the shipment at a cost of $310. Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $650. Determine the cost of the inventory acquired from the estate
Answer:
$42,060
Explanation:
Walberg Associates cost of the inventory acquired from the estate will be:
Cost of inventory
Price 39,100
Transportation 2,000
Shipment Insurance 310
Cleaning and refurbishing 650
Total cost of inventory 42,060
the cost of the inventory acquired from the estate is $42,060.
Inventory is the goods and materials that a business holds for the ultimate goal of resale, production, or utilization.
It is a current asset on a company's balance sheet, and it can be categorized as raw materials, work-in-progress, or finished goods. Inventory management is a discipline primarily about specifying the shape and placement of stocked goods.
Walberg Associates' cost of the inventory acquired from the estate will be:
Cost of inventory
Price 39,100
Transportation 2,000
Shipment Insurance 310
Cleaning and refurbishing 650
Total cost of inventory $42,060
Therefore, total cost of inventory $ 42,060.
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From the beginning of 2000 until its peak in 2012, Apple’s stock price rose from $27.97 to $702.10, an increase of 25 times. Yet Apple’s stock price decreased by 37% from its peak in September 2012 until the end of March 2013, from $702.10 to $442.66. What specific attributes of their operational performance do you think account for Apple’s stock performance before and after the peak?
Answer:
Steve Jobs coming back, Innovations, and Tim Cook taking over as COO
Explanation:
The fluctuations in stock prices of a company are due to improved performance of the company in meeting it's objectives and perception that the business will do better in the future.
In the given scenario there was an initial increase in Apple’s stock price from $27.97 to $702.10, an increase of 25 times.
This can be attributed to the return of Steve Jobs as the CEO of Apple. There was a confidence boost by his coming back. Also there were various innovations like: iPhone, iMac, iPod, and iTunes. These improved the performance and by extension share price of Apple.
However when Tim Cook took over as COO he reduced production by half resulting in stock price decrease by 37% from its peak in September 2012 until the end of March 2013, from $702.10 to $442.66.
The specific attributes of Apple's operational performance that increased its stock performance before and after the 2012 peak could be attributed to the following operational factors:
1. The return of Steve Jobs as Apple's CEO brought in active and innovative leadership and management style that revitalized the company's operational performance.
2. The following innovations, like iPhone, iMac, iPod, and iTunes, skyrocketed Apple's stock performance and boosted investor confidence in the company's leadership.
3. The reduction in the stock performance occurred when Tim Cook took over following the death of Steve Job, especially with some of the operational changes that halved production units.
Thus, the starring increase of Apple's stock price from $27.97 to $702.10 in 2012 and the subsequent reduction to $442.66 can be attributed to the above operational factors.
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The first step in the Analytical Hierarchy Process:_________
A. Consists of constructing a hierarchy of criteria and subcriteria.
B. Is analyzing the process you intend to improve before undertaking any improvement project.
C. Requires supporting requirements to be combined into Level II challenges.
D. Requires Saatyfication of the team members.
Answer:
A. Consists of constructing a hierarchy of criteria and subcriteria.
Explanation:
The Analytical Hierarchy process was developed by Thomas Saaty for use by organizations seeking to make very complex decisions. The first step in this approach involves the breakdown of the problem into criteria and sub-criteria. The reason for this breakdown is to ensure a smoother analysis of the problem.
After these alternatives are developed comparisons are made of the different criteria using data obtained from them or human reasoning and perceptions. The next step is the compilation of the numerical probability of the alternatives which is a rigorous process.
Kleiner Merchandising Company Accumulated depreciation $ 700 Beginning inventory 5,000 Ending inventory 1,700 Expenses 1,450 Net purchases 3,900 Net sales 9,500 Krug Service Company Expenses $ 12,500 Revenues 14,000 Cash 700 Prepaid rent 800 Accounts payable 200 Equipment 1,300 Required: a. Compute the goods available for sale, and the cost of goods sold and gross profit for the merchandiser. Hint: Not all information may be necessary. b. Compute net income for each company.
Answer:
Find below properly indented question:
Kleiner Merchandising Company
Accumulated depreciation $ 700
Beginning inventory 5,000
Ending Inventory 1,700
Expenses 1,450
Net Purchases 3,900
Net Sales 9,500
Krug Service Company
Expenses $ 12,500
Revenues 14,000
Cash 700
Prepaid rent 800
Accounts payable 200
Equipment 1,300
Merchandiser:
cost of goods available is $8,900
Cost of goods sold is $7,200
Gross profit is $2,300
Net income is $850
Krug Service company:
Net income is$1,500
Explanation:
Merchandiser:
Cost of goods available=beginning inventory+net purchases
costs of goods available=$5,000+$3,900=$8,900
Cost of goods sold=cost of goods available-ending inventory
cost of goods sold=$8,900-$1,700=$ 7,200.00
Gross profit =net sales-cost of goods sold
gross profit=$9,500-$7,200=$2,300
Net income=gross profit-expenses
net income=$2,300-$1450=$850
Krug Service company
Net income=revenue-expenses=$14,000 -$12,500=$1,500
Doisneau 16-year bonds have an annual coupon interest of 9 percent, make interest payments on a semiannual basis, and have a $1 comma 000 par value. If the bonds are trading with a market's required yield to maturity of 16 percent, are these premium or discount bonds? Explain your answer. What is the price of the bonds?
Answer:
discount bond.
Explanation:
A premium bond is one whose price is above its par value, while a discount bond is one whose price is below its par value. Therefore, to find the answer, we need to find the price of the bond.
To find the price of the bond, we use the formula attached in this answer.
In the formula, YTM = Yield to Maturity, C = Value of the Coupon payment, P = par value of the bond, and n = number of periods till matirity.
We have this information.
YTM = 16%
P = 1,000
The number of periods n = 32 because it is a 16-year bond that pays a semiannual coupon, so 16*2 = 32
Finally, the coupon payment is 45 because the coupon rate is 9%, and the coupon is paid semiannually, so the formula is 9%*1,000 / 2.
Plugging the amounts into the formula we obtain the following answer:
Price of the bond = 287.5
Because the price of the bond is so much lower than its par value, the bond is a discount bond.
Balance sheet and income statement data indicate the following: Bonds payable, 10% (due in two years) $826,000 Preferred 5% stock, $100 par (no change during year) 277,000 Common stock, $50 par (no change during year) 1,530,000 Income before income tax for year 342,000 Income tax for year 79,000 Common dividends paid 76,500 Preferred dividends paid 13,850 Based on the data presented, what is the times interest earned ratio (rounded to one decimal place)
Answer:
5.1
Explanation:
Times interest earned ratio can be described as the ability of an organisation to make their debt payment within the stipulated period of time
The formular for calculating Times interest earned ratio is
= Earnings before interest and tax/Total interest payable
The interest exsense can be calculated as follows
Interest expense= $826,000×10/100
= $82,600
Since the income generated before income tax is $342,000
The time interest earned ratio is calculated as follows
= $342,000+ $82,600/$82,600
= $424,600/$82,600
= 5.14
= 5.1 ( rounded to 1 decimal place)
Hence the Times interest earned ratio is 5.1
Lori, who is risk averse, has two pieces of jewelry, each worth $1,000. She plans to send them to her sister's firm in Thailand to be sold there. She is concerned about the safety of shipping them. She believes that the probability that any box shipped will not reach its destination is theta. Is her expected utility higher if she sends the articles together or in two separate shipments? Lori's expected utility is A. the same whether she sends the jewelry to Thailand in one box or in separate boxes. B. higher if she sends the jewelry to Thailand in one box regardless of her preferences for risk. C. higher if she sends the jewelry to Thailand in one box because she's risk averse. D. higher if she sends the jewelry to Thailand in separate boxes regardless of her preferences for risk. E. higher if she sends the jewelry to Thailand in separate boxes because she's risk averse.
Answer:
The correct answer is the option E: higher if she sends the jewelry to Thailand in separate boxes because she's risk averse.
Explanation:
On the one hand, if Lori is risk averse then that means that she tends to prefer the less risk that can be in the moment of making a decision without given importance to what she can make of that decision.
On the other hand, the expected utility hypothesis states that Lori will choose the option that will have a greater utility according to the situations.
In conclussion, Lori will choose to send the jewelry to Thailand in separate boxes because she is risk averse and she will prefer to expend more money and lower the risks and by doing that she will have a higher expected utility.
Illinois Company uses the periodic inventory system. Beginning and ending inventories for 2019 were $280,000 and $240,000, respectively. Net purchases were $720,000 while freight in was $60,000. The cost of good sold net income for 2019 was:
Answer:
Cost of goods sold = $820,000
Explanation:
Cost of goods sold represent the amount incurred as direct expenditures on the goods sold. It is measured in cost and cal calculated as follows:
Cost of goods sold = opening inventory + purchases+ freight charges - closing inventory
= 280,000 + 720,000 + 60,000 - 240,000 = 820,000
Cost of goods sold = $820,000
Ortega Company manufactures computer hard drives. The market for hard drives is very competitive. The current market price for a computer hard drive is $45. Ortega would like a profit of $10 per drive. What target cost Ortega should set to accomplish this objective
Answer:
Ortega should set a target cost of $35
Explanation:
Target cost is the competitive market price of a product minus the desired profit margin.
Competitive market price in this case is $45
Desired profit margin is $10
Target cost=competitive market price-desired profit amount
target cost=$45-$10=$35
Target cost for which the company must produce the hard drive in order to sell at $45 per drive and make a profit of $10 per drive is $35
Which of the following is not a business transaction? Question 6 options: Erin deposits $15,000 in a bank account in the name of Erin’s Lawn Service. Erin provided services to customers earning fees of $600. Erin purchased hedge trimmers for her lawn service agreeing to pay the supplier next month. Erin pays her monthly personal credit card bill.
Answer:
Erin purchased hedge trimmers for her lawn service agreeing to pay the supplier next month.
Explanation:
