Answer:
An assumption that makes an economic model simpler without affecting its conclusions in important ways is, D. simplifying assumption.
Explanation:
Every economic model begins with assumptions about the world. There are two types of assumptions in a model: simplifying assumptions and critical assumptions. A simplifying assumption is just what it sounds like—a way of making a model simpler without affecting any of its important conclusions.
Answer:
D
Explanation:
A simplifying assumption is a way of making a model simpler without affecting any of its important conclusions. The purpose of a simplifying assumption is to rid a model of extraneous detail so its essential features can stand out more clearly. We might assume that there are only two goods that households can choose from or that there are only two nations in the world. We make
such assumptions not because they are true, but because they make a model easier
to follow and do not change any of the important insights we can get from it.
Jason, a police officer, strongly believes in justice and does not accept bribes from others. According to Kohlberg's stages of moral development, Jason is operating at the _____
A) preconventional level of moral development
B) postconventional level of moral development
C) conventional level of moral development
D) unconventional level of moral development
Answer:
postconventional level of moral development
Explanation:
Kohlberg's postconventional level of moral development says people now realise that some soceital laws are unjust and needs to change. They realise that people can disobey soceital norms based on their personal principles.
Principles could include human rights, justice, freedom of speech among others.
In this instance Jason has a strong sense of justice and this makes him not to collect bribes.
Jason is operating at the postconventional level of moral development according to Kohlberg, as he upholds justice over potential bribes and societal norms.
Explanation:Jason, a police officer who strongly believes in justice and does not accept bribes, is exhibiting a moral standpoint that suggests he is operating at the postconventional level of moral development in Kohlberg's theory. This level is characterized by the capacity to think of morality in abstract terms and an understanding that legality and morality do not always coincide. People who operate on this level, like Jason, may prioritize ethical principles over legal codes or social norms when they perceive a conflict between them, as they value justice and fairness highly. This level of moral reasoning recognizes a universal principle of justice that transcends laws and societal expectations.
Baxley Brothers has a DSO of 26 days, and its annual sales are $6,205,000. What is its accounts receivable balance? Assume that it uses a 365-day year. Round your answer to the nearest cent.
Answer:
The receivable balance is $ 442,000
Explanation:
The DSO is the abbreviation for Days Sales Outstanding and is referred to in no of days.
Based on the data in the question, the average daily sales is $ 6,205,000/ 365 days.
$ 6,205,000 / 365 days = $ 17,000 per day
If the DSO is 26 days, we need to multiply the average daily sales by the number of days to get the receivable balance
$ 17,000 *DSO of 26 = $ 442,000
"Treasury bonds paying an 14.0% coupon rate with semiannual payments currently sell at par value. What coupon rate would they have to pay in order to sell at par if they paid their coupons annually? (Hint: What is the effective annual yield on the bond?")
Answer:
An annual bond should pay 14.49% to be sale at par when issued.
Explanation:
Considering the effective yield on the bond, we should convert the 7% semiannual rate into an annual rate:
[tex](1+0.07)^{2} - 1 = r_e\\.1449 = r_e[/tex]
We get that the ate for an annual bonds to be financially equivalent it should be 14.49%
Final answer:
To find the annual coupon rate for Treasury bonds to sell at par when currently selling at par with a 14.0% semiannual coupon, calculate the effective annual yield from the semiannual coupon and set that as the annual coupon rate for the bond to still sell at par.
Explanation:
The question asks what coupon rate Treasury bonds would have to pay in order to sell at par value if they paid their coupons annually instead of semiannually, while currently selling at par with a 14.0% coupon rate and semiannual payments. The crux of the problem lies in calculating the effective annual yield, which will account for the compounding effect of semiannual payments. When bonds pay coupons semiannually, the actual annual yield, or effective annual rate (EAR), is higher than the nominal coupon rate due to compounding. To find the coupon rate needed for an annual payment to sell at par, one would equate the EAR from the semiannual bond to the coupon rate of the annual bond.
Using the formula for EAR, EAR = (1 + (nominal rate / number of periods))^number of periods - 1, for a semiannual bond with a 14.0% nominal rate, we have EAR = (1 + (0.14 / 2))^2 - 1. Calculating this, we find the EAR to be higher than 14.0%. The bond that pays coupons annually at this EAR would sell at par since the investor would be indifferent between the two bonds in terms of yield.
For fiscal year 2016, Nancy calculated the following costs for Choco-rama’s manufacturing process. Beginning work in process inventory, $22,655 Ending work in process inventory, $28,207 Beginning raw materials inventory, $42,385 Ending raw materials inventory, $44,299 Raw materials purchased, $387,521 Office supplies purchased and used, $15,274 388,400 man-hours of factory labor incurred at $23.60/hour 14,200 man-hours of factory oversight labor incurred at $28.75/hour Administrative salaries, $392,000 Factory utilities, $18,500 Factory depreciation, $9,700 Factory repairs, $15,400
Answer:
The Cost of Manufactured Goods 9,998,145
Explanation:
The question is to determine Choco-rama's Cost of Goods Manufactured for the 2016 Fiscal Year.
CHOCO RAMA COST OF GOODS MANUFACTURED FOR THE 2016 FISCAL YEAR
Description Amount ($) Amount ($)
Opening Inventory of Raw materials 42,385
Add: Purchase of raw materials 387,521
Direct raw materials available 429,906
Subtract: Closing raw materials (44,299)
Raw materials in Production 385,607
Add:
Direct labour ($388,400 x $23.60) 9,166,240
Manufacturing overhead 451,850
The total manufacturing costs 10,003,697
Add: Opening Work-in-Progress 22,655
10,026,352
Subtract: Closing work-in-progress (28,207)
The Cost of Manufactured Goods 9,998,145
How might social media be used to develop more trust- ing relationships between management and employees? Between a company and its customers?
Answer:
The following are six ways in which brands can begin to build trust through social networks.
Explanation:
Thought leadership communication
One way for a brand to lose credibility before a social audience is to simply spam them with "opportunities" to buy a product or service without providing any value. This value can come in many forms, but it must be designed to teach, entertain, ignite discussions and get honest comments. Social networks are the perfect platform for a brand to communicate its experience in a particular industry, and it does so by providing excellent content that people will share with others. This is how companies can become opinion leaders in their space.
Transparency
this is an area that executives and decision makers have feared most, but an obstacle that must be overcome for a company to succeed using social networks. In today's digital world, transparency is an inherent reality, as people will talk about the problems associated with their online brand. Companies must accept this and get involved in guiding that conversation. In an eMarketer report, 77% of shoppers said they are more likely to buy from a company if the CEO uses social media, and 82% trust the company more. This is impressive and shows how consumers want to interact with high-level brands and executives.
Fast and responsive customer communication
if consumers know that they can communicate with their company through social networks and are encouraged to do so, this is a good opportunity to deliver a unlimited service in front of a large audience. Do not be afraid of customer complaints. Approach them head on. These opportunities can often become excellent testimonials when customers are handled with care.
Guarantees responsibility
when companies openly participate in social networks and encourage their audience to interact with them, a certain level of responsibility is guaranteed. By using social networks aggressively, a brand can be responsible for providing excellent products, services and customer service. They can't afford not to! But isn't that the goal anyway?
Fun and simple commitment
Another way to build and maintain trust is through entertainment. Do not always try your company and its services or value. This energies the thought of leadership and content marketing. Provide value in a fun and creative way through daily content, applications, videos, contests, sweepstakes and infographics. The opportunities are endless.
Social responsibility
An excellent way to build trust with your customers is to let them know that you care about others rather than yourself. The same goes for creating brand value. Socially responsible brands often gain more momentum because their customers know that it is not just about profits, but that they are also giving back to their communities or the world around them. Public channels such as social media are the perfect platform to communicate this message and let it spread organically. For example, Marriott is conducting a registration campaign that encourages guests to register, and the hotel will donate $ 2 to charities. This promotion is intended to take advantage of a typical social interaction for the common good.
Consider these six methods of building trust when marketing your brand through social networks. There are many other ways for companies to create brand confidence in the digital space
Barb is trying to take control of her time by using an online time tracking system that tracks her time spent on tasks and projects. She heard that if you do something for seven weeks it becomes a habit. The activity in our brain that decides whether a behavior should be repeated and stored is ______.
Answer:
Habit Loop
Explanation:
Habit Loop -
It is a type of loop , which runs in the brain of the human being , and functions to govern the habit , is referred to as habit loop .
The habit loop has three components , i.e. , reward , routine , and cue .
The proper knowledge of these components enables the person to have command of their habits and can easily remove the bad habits and inculcate the good ones .
Hence , from the given scenario of the question,
The correct term is habit loop .
Which of the following is NOT one of the 10 strategic operations management decisions? A. supply chain management B. layout strategy C. mass customization D. process and capacity design E. maintenance
answer would be Mass customization
One of the 10 strategic operating management decisions should not involve mass customization.
The information related to the operations management decisions is as follows:
The operations management motive is to maximize the efficiency at the time when the goods and services should be generated so that the needs of the customer could be fulfilled.The operation decisions should include the decision that contains the strategic in nature that contains the long-term result and include more expense and commitment related to the resources.It involves the supply chain management, strategy related to the layout, the design related to the process & capacity, maintenance, etcTherefore we can conclude that one of the 10 strategic operating management decisions should not involve mass customization.
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The town of Pittsford, NY is in need of a new water treatment plant to meet its average daily demand of 18, 000 m3/d and is accepting proposals from consulting firms. EMW Environmental has proposed to construct a plant which will be capable of producing 1750 m3/h and will have a storage reservoir to hold 3, 975m3of water. A second firm, EnviroSolution, is proposing Pittsford construct a plant which will produce 2, 250 m3/h, but will not have any storage capacity. Which proposal do you recommend? Show all calculations and provide a multi-sentence explanation of your decision.
Answer:
The 1st plant with a storage reservoir is a better option as compared to that of the 2nd plant.
Explanation:
Suppose the factor for variation in hourly demand is 2 So the average hourly demand is given as
Average Hourly Demand=Factor x Average Daily Demand
AHD=2 x 18000 m3
AHD=36000 m3
For the first pump
The Quantity in storage tank is 3975 m3
So the amount of pumping required is
[tex]Q_{pump1}=AHD-Q_{reservoir}\\Q_{pump1}=36000-3975 \\Q_{pump1}=32025 m^3[/tex]
For this value the pump will work for following hours
[tex]t_{pump1}=\frac{Q_{pump}}{pumping rate_1}\\t_{pump1}=\frac{32025}{1750}\\t_{pump1}=18.3 \, hours[/tex]
So the pump 1 can complete the demand of the town by working for 18.3 hours.
Now in order to complete the demand, the second pump is given as
[tex]Q_{pump2}=AHD\\Q_{pump2}=36000 m^3[/tex]
For this the pump will work for as
[tex]t_{pump2}=\frac{Q_{pump2}}{pumping rate_2}\\t_{pump2}=\frac{36000}{2250}\\t_{pump2}=16 \, hours[/tex]
So the pump 2 requires 16 hours to complete the demand of the town.
Here it is important to note that the realistic demand of the water can vary from the average value and thus when there is a drastic requirement of water in certain cases, the pump 2 will fail. Also pump 2 has to be run continuously and will produce excessive water which will be wasted if the hourly demand is less than that of the production value.
In context of this, the 1st plant with a storage reservoir is a better option as compared to that of the 2nd plant.
A student's bank statement reflects $1,600 at month end. The student's checkbook, before reconciling, reflects $1,500. The student has $5 of interest on the bank statement which has not been posted to his/her checkbook, deposits in transit of $100, and outstanding checks of $195. What is the reconciled bank balance?
a. $1,400
b. $1,520
c. $1,510
d. $1,505
Answer:
$1505
Explanation:
Bank reconciliation is done to agree cash balance in the book with balance in the bank statement.
In reconciling these amounts, some items are added and some subtracted.
In this case, three items are needed to be reconciled: interest of $5, deposit in transit of $100 and outstanding check of $195.
Starting with the bank statement balance, only items that have not been registered in the account will be considered. Hence, $5 interest will not be considered because it has been included in the unadjusted bank balance already.
For the other two items, the treatment is as follows: deposit in transit is added to bank balance and uncleared check subtracted.
$
Bank Balance 1600
Add: Deposit in transit 100
Subtract Outstanding check (195)
Balance per adjusted bank balance 1505
Answer:
1600
Explanation:
Balance As per Checkbook = 1500
Add: checks issued but not presented in bank = 195
Add: Interest Income not recorded in books = 5
Less: Depsits recorded in books but not presented in books = (100)
Balance As per bank statement = 1600
When supply is > demand for a business is: a. High profit b. Customer dissatisfaction impact c. Ideal d. Wasteful/Costly
Answer:
The correct answer is letter "B": Customer dissatisfaction impact.
Explanation:
Customer dissatisfaction arises when the good or service provided by a company does not meet the needs of the consumers. The direct result of this situation is reflected in the quantity demanded of the product in reference, provoking an overload of supply since the buyers start purchasing less every time.
Your mother just received a $340 comma 461 inheritance. If she invests her money in a diversified equity portfolio returning 8 percent per year, approximately how long will it take her to become a millionaire?
Answer:
time period is 14.17 years
Explanation:
given data
principal P = $340,461
future value FV = $1000000
rate r = 8% = 0.08
to find out
time period t
solution
we will apply here future value formula that is
future value = principal × [tex](1+rate)^{t}[/tex] ..........................1
put here value and we get
$1000000 = $340,461 × [tex](1+0.08)^{t}[/tex]
2.9371 = [tex](1.08)^{t}[/tex]
take ln both side
ln 2.9371 = t ln(1.08)
1.077 = t × 0.076
t = 14.17
so time period is 14.17 years
25,000 shares reacquired by Elixir Corporation for $53 per share were exchanged for undeveloped land that has an appraised value of $1,700,000. At the time of the exchange, the common stock was trading at $62 per share on an organized exchange. Prepare the journal entry to record the acquisition of land assuming that the purchase of the stock was originally recorded using the cost method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required\ select "No Entry" for the account titles and enter 0 for the amounts.)
Answer:
XX date. Acquisition of land in exchange for treasury stock.
Dr Land $1,550,000
Cr Treasury Stock $1,325,000
Cr Paid in Capital $225,000
Explanation:
Since the corporation uses the cost method, the transaction is recorded at purchase value regardless of current stock price.
treasury stock = 25,000 x $53 = $1,325,000
paid in capital = ($62 - $53) x 25,000 = $225,000
cost of the land = $1,325,000 + $225,000 = $1,550,000
The year-end financial statements of Greenway Company contained the following elements and corresponding amounts: Assets = $23,000; Liabilities = ?; Common Stock = $5,300; Revenue = $11,600; Dividends = $900; Beginning Retained Earnings = $3,900; Ending Retained Earnings = $7,300.
The amount of liabilities reported on the end-of-period balance sheet was
A. $11,200.
B. $10,400.
C. $13,800.
D. $9,200.
What is the present value of an annuity of $6,000 per year, with the first cash flow received three years from today and the last one received 25 years from today? Use a discount rate of 7 percent.
Answer:
The present value will be of 85,714.29 dollars
Explanation:
We write the formula for the annuity and then, we place the values for our case:
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 6,000.00
time 2500
rate 0.07
[tex]6000 \times \frac{1-(1+0.07)^{-2500} }{0.07} = PV\\[/tex]
PV $85,714.2857
The present value will be of 85,714.29 dollars
A media company has a high market share in the cassette tape market. The cassette tape market has low growth potential. This business fits into the ________ category of the BCG growth-market share matrix.
Answer:
Cash Cows
Explanation:
The Boston Consultancy Group devised a matrix representation for evaluating businesses as per their respective market share. The matrix depicts a portfolio of four possibilities for a strategic business unit.
The matrix is known for it's cows-dogs metaphor. It measures market growth rate on vertical axis and relative market share on horizontal axis.
It is used for allocating resources to a strategic business unit as per feasibility. The four possibilities defined are, stars, cash cows, question mark and dogs.
In the given question, the media company has relative high market share in low growth industry. This fits into the grid of "cash cows". These require little timely investment.
Final answer:
The correct classification for a business with high market share in a low growth market according to the BCG matrix is 'Cash Cow'. This category is characterized by generating significant cash flow more than what is invested into the business, allowing for investment in other areas.
Explanation:
The question relates to a concept within the BCG growth-market share matrix, specifically addressing a scenario where a company holds a high market share in a market with low growth potential. The correct category for such a business is 'Dog'. However, based on the characteristics described (high market share in a low growth market), the correct answer is 'Cash Cow'. Cash Cows are segments where a company has a high market share in a slow-growing industry. These divisions generate more cash than they consume, allowing a company to invest in other areas of business. The BCG matrix helps businesses allocate resources efficiently across different segments by categorizing them into four types: Stars, Question Marks, Cash Cows, and Dogs, based on market growth and market share.
Considering other market dynamics like network effects and winner-take-all contests, examples include the dominance of VHS over Betamax in the videotape market or Microsoft's Windows in the personal computer operating systems. These examples illustrate how a business can leverage its market position to secure almost monopolistic control, similar to how a Cash Cow operates by relying on a well-established market share in a stagnant growth environment.
Ivanhoe Co. reports net income of $78,000. Partner salary allowances are Pitts $10,000, Filbert $3,000, and Witten $5,000. Indicate the division of net income to each partner, assuming the income ratio is 52 : 22 : 26, respectively. quiz
Answer:
52 : 22 : 26 getting $31,200, $13,200, and $15,600
Explanation:
In a partnership, the salaries earned by the partners are treated like salaries paid to third parties. As such, these salaries are deducted from the net income of the partnership before the sharing formula is applied to determine what each partner gets.
Total salaries paid = $10,000 + $3,000 + $5,000
= $18,000
Net profit to be shared = $78,000 - $18,000 = $60,000
Total of all ratios = 52 + 22 + 26 = 100
Division of net income to each partner is as follows;
Partner 1 = (52/100) × $60,000 =$31,200
Partner 2 = (22/100) × $60,000 =$13,200
Partner 3 = (26/100) × $60,000 =$15,600
Hence the partners share at the ratio 52 : 22 : 26 getting $31,200, $13,200, and $15,600
The division of net income from Ivanhoe Co. for the partners would be: Pitts $40,560, Filbert $17,160, and Witten $20,280, determined by their respective income ratios.
Explanation:To determine the division of net income to each partner, you must first calculate the total partnership income ratio using the provided ratios for Pitts, Filbert, and Witten, which are 52, 22, and 26 respectively. The total income ratio is the sum of these numbers, which is 100 (52 + 22 + 26).
For the division of net income, multiply each partner's ratio by the total net income. Ivanhoe Co. reported a net income of $78,000. Pitts' share will be 52/100 x $78,000 = $40,560. Filbert's share will be 22/100 x $78,000 = $17,160. Witten's share will be 26/100 x $78,000 = $20,280.
Please note that in real-life situations, these calculations are often accomplished after the salary allowances have been distributed. However, in this question, we have simply dealt with the distribution based on the income ratio, as directed.
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A 10-year maturity bond with par value of $1,000 makes annual coupon payments at a coupon rate of 12%. Find the bond equivalent and effective annual yield to maturity of the bond for the following bond prices. (Round your answers to 2 decimal places.)a. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $940. Bond equivalent yield to maturity %
Effective annual yield to maturity % b. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $1,000. Bond equivalent yield to maturity %
Effective annual yield to maturity % c. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $1,040. Bond equivalent yield to maturity %
Effective annual yield to maturity %
Answer:
a) 13.11%
b) as the price matches the bond rate it will be 12%
c) 11.31%
Explanation:
We should calcuate usig excel for the rate which makes the present value of the coupon payment and discounted maturity:
A) PV of the coupon payment (PV of an annuity)
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C $1,000 x 12% = 120.000
time 10
rate 0.1311 (finded with excel)
[tex]120 \times \frac{1-(1+0.1311)^{-10} }{0.1311} = PV\\[/tex]
PV $648.2804
PV of the maturity (PV of a lump sum)
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 1,000.00
time 10.00
rate 0.1311(finded with excel)
[tex]\frac{1000}{(1 + 0.1311)^{10} } = PV[/tex]
PV 291.72
PV c $648.2804
PV m $291.7198
Total $940.0002
For C we do the same with a present value of 1,040 dollars
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 120.000
time 10
rate 0.113118875
[tex]120 \times \frac{1-(1+0.113118874891792)^{-10} }{0.113118874891792} = PV\\[/tex]
PV $697.5599
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 1,000.00
time 10.00
rate 0.113118875
[tex]\frac{1000}{(1 + 0.113118874891792)^{10} } = PV[/tex]
PV 342.44
PV c $697.5599
PV m $342.4400
Total $1,040.0000
A real estate agent is considering changing her cell phone plan. There are three plans to choose from, all of which involve a monthly service charge of $20. Plan A has a cost of $.42 a minute for daytime calls and $.17 a minute for evening calls. Plan B has a charge of $.52 a minute for daytime calls and $.15 a minute for evening calls. Plan C has a flat rate of $80 with 275 minutes of calls allowed per month and a charge of $.38 per minute beyond that, day or evening.a. Determine the total charge under each plan for this case: 150 minutes of day calls and 70 minutes of evening calls in a month. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)b. If the agent will use the service for daytime calls, over what range of call minutes will each plan be optimal? (Round each answer to the nearest whole number.Include the indifference point itself in each answer.)c. Suppose that the agent expects both daytime and evening calls. At what point (i.e., percentage of total call minutes used for daytime calls) would she be indifferent between plans A and B?
Answer:
req 1)
Plan A
0.42 x 150 + 0.17 x 70 = 74.9
Plan B
0.52 x 150 + 0.15 x 70 = 88.5
Plan C $80
req 2)
from 0 to 190 minutes Plan A
from 191 and beyond Plan C
req 3)
the proportion should be 1/6 daycalls and 5/6 evenings
Explanation:
150 day calls
70 minutes evening calls
Plan A
0.42 x 150 + 0.17 x 70 = 74.9
Plan B
0.52 x 150 + 0.15 x 70 = 88.5
Plan C $80
2) A will be preferable to B as it has the lower cost
now at some point C will be better as the cost is a flat rate
80 dollars / 0.42 per minute = 190.47
3) 0.42X + 0.17Y = 0.52X + 0.15Y
a minute of daycall is 10 cent higher in plan B
while a minute of evening call is 2 cent lower
thus, to balance there was to be 5 times more evening call than day times:
1:5 1 + 5 = 6
the proportion should be 1/6 daycalls and 5/6 evenings
The total charge for the real estate agent's cell phone use with Plan A is $94.90, with Plan B is $108.50, and with Plan C is $80, given that usage doesn't exceed the allotted 275 minutes. To optimize plan selection or determine indifference points, further calculations are needed involving the rates and usage.
Explanation:To determine the total charge under each cell phone plan for 150 minutes of daytime calls and 70 minutes of evening calls:
Plan A: $20 + (150 minutes * $0.42) + (70 minutes * $0.17) = $20 + $63 + $11.90 = $94.90Plan B: $20 + (150 minutes * $0.52) + (70 minutes * $0.15) = $20 + $78 + $10.50 = $108.50Plan C: If the total minutes (220) are within the 275 allowed, the flat rate of $80 applies, else there's an additional charge. Here, 220 minutes < 275, so the charge is just $80.To determine over what range of call minutes each plan is optimal and the point where the real estate agent would be indifferent between plans A and B, we need to perform calculations that might involve constructing equations based on the given minute rates and comparing total costs or calculating the marginal utilities of each plan.
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Assuming Net Income for the year is $230,000, what is the net cash flows from operating activities given the following information: Increase in Salaries Payable: $17,000 Depreciation Expense: $5,000 Increase in Prepaid Rent: $29,000 Loss on sale of asset: $1,150 Increase in Accounts Payable: $31,000 Increase in Inventory: $82,000a. $234,950 b. $242,450 c. $205,450 d. $324,050
Answer:
$173,150
Explanation:
Given that,
Increase in Salaries Payable = $17,000
Depreciation Expense = $5,000
Increase in Prepaid Rent = $29,000
Loss on sale of asset = $1,150
Increase in Accounts Payable = $31,000
Increase in Inventory = $82,000
Net cash flows from operating activities:
= Net income + Increase in Salaries Payable + Depreciation Expense - Increase in Prepaid Rent + Loss on sale of asset + Increase in Accounts Payable - Increase in Inventory
= $230,000 + $17,000 + $5,000 - $29,000 + $1,150 + $31,000 - $82,000
= $173,150
Therefore, the net cash flows from operating activities is $173,150.
The concept of market efficiency underpins almost all financial theory and decision models. When financial markets are efficient, the price of a security—such as a share of a particular corporation’s common stock—should be _________(equal to or more than) the present value estimate of the firm's expected cash flows discounted by its appropriate rate of return.
Answer:
Equal
Explanation:
Market efficiency is the term which is defined as the degree to which the prices of the product in the market reflect or state all the relevant as well as available information.
When the market are efficient, then all the information is incorporated into the prices and there is no method to beat the market as there is no overvalued or undervalues securities will be available.
So, the financial market are efficient, then the price of the security is equal to the present value of expected cash flows of the firm.
Juniper Design Ltd. of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company had net operating income of $450,000 on sales of $1,200,000. The company’s average operating assets for the year were $1,400,000 and its minimum required rate of return was 13%.
Required:
Compute the company’s residual income for the year.
Answer:
$268,000
Explanation:
Given that,
Last year net operating income = $450,000
Sales = $1,200,000
Average operating assets = $1,400,000
Minimum required rate of return = 13%
Minimum required return:
= 13% × Average operating assets
= 0.13 × $1,400,000
= $182,000
Therefore,
Residual income:
= Net operating income - Minimum required return
= $450,000 - $182,000
= $268,000
Final answer:
Juniper Design Ltd.'s residual income for the year can be calculated by subtracting the product of its average operating assets and its minimum required rate of return from the net operating income, which results in a residual income of $268,000.
Explanation:
To calculate the residual income of Juniper Design Ltd., we need to first find the company's net operating income, subtract the product of the minimum required rate of return and the average operating assets. Given that the net operating income is $450,000, the average operating assets are $1,400,000, and the minimum required rate of return is 13%, the calculation is as follows:
Minimum required return on assets = Average operating assets × Minimum required rate of return
= $1,400,000 × 13%
= $182,000
Residual income = Net operating income - Minimum required return on assets
= $450,000 - $182,000
= $268,000
Therefore, the residual income for Juniper Design Ltd. is $268,000 for the year.
Mountaineer excavation operates in a low-lying area that is subject to heavy rains and flooding. because of this, mountaineer purchases one year of flood insurance in advance on march 1, paying $36,000 ($3,000/month).
Required:
1. Recore the purchase of insurance in advance on March,1.
1. Record the adjusting entry on December, 31.
Answer:
1. Recore the purchase of insurance in advance on March,1.
Debit Prepaid Insurance $36,000
Credit Cash $36,000
2. Record the adjusting entry on December, 31.
Debit Insurance Expense $30,000
Credits Prepaid Insurance $30,000
Explanation:
Mountaineer excavation purchases one year of flood insurance in advance on March 1, paying $36,000 ($3,000/month). The company records the insurance as the prepaid Insurance:
Debit Prepaid Insurance $36,000
Credit Cash $36,000
On December, 31, the last day of the following 10 months, the company records an adjusting entry that Credits Prepaid Insurance for $30,000 ($3,000/month times the 10 months) and Debits Insurance Expense for $30,000
Debit Insurance Expense $30,000
Credits Prepaid Insurance $30,000
1. Record of the purchase of insurance in advance on March,1 as Debit Prepaid Insurance $36,000 & Credit Cash $36,000.
2. Record the adjusting entry on December, 31 as Debit Insurance Expense $30,000 & Credits Prepaid Insurance $30,000.
1. The journal entry above records the payment of $36,000 for one year of flood insurance coverage.
It debits the Insurance Expense account (or Prepaid Insurance account) to recognize the expense and credits the Cash account to reflect the payment made.
Thus, the journal entry would look like this
Debit Credit
Prepaid Insurance $36,000
Cash $36,000
2. Mountaineer Excavation would need to recognize the portion of the prepaid insurance that has been used up.
Since the insurance was purchased on March 1 and covers a period of one year, by December 31, 10 months’ worth of insurance has been used up. At a rate of $3,000 per month, this amounts to $30,000.
Thus, the journal entry would look like this
Debit Credit
Insurance Expense $30,000
Prepaid Insurance $30,000
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Matt Bennett wishes to have $ 110 comma 000 in six years. If he can earn annual interest of 8%, how much must he invest today?
Answer:
he invest today is $229166.67
Explanation:
given data
future value = $110,000
time t = 6 year
rate r = 8 % = 0.08
to find out
present value
solution
we get here present value that is
future amount = principal × rate × time .................1
$110,000 = principal × 8% × 6
$110,000 = principal × 0.08 × 6
$110,000 = principal × 0.48
principal = [tex]\frac{110000}{0.48}[/tex]
principal = 229166.67
so he invest today is $229166.67
The Uniform Electronic Transaction Act (UETA): a. has been adopted in all 50 states. b. has been declared unconstitutional. c. is the same as E-sign. d. none of the above
Answer:
d. none of the above
Explanation:
The Uniform Electronic Transaction Act (UETA) -
The act was given by National Conference of Commissioners on Uniform State Laws (NCCUSL) in the year 1999 , which includes 47 states in total .
The main motto of this act is to bring harmony amongst these states by papers records and electronic signature .
Hence , from the given information of the question,
none of the statement about the Uniform Electronic Transaction Act (UETA) is correct .
Therefore , the correct option is d. none of the above .
Answer:
The correct answer is letter "D": none of the above.
Explanation:
The Uniform Electronic Transaction Act (UETA) is a valid U.S. treaty that aims to provide the same value to electronic and paper transactions. It was adopted since 1999 by the National Conference of Commissioners on Uniform State Laws (NCCUSL) by 47 states which did not include New York, Illinois, and Washington.
The UETA is usually related to the Electronic Signatures in Global and National Commerce Act (E-signed) which is an individual federal U.S. law passed in 2000 to recognize electronic signatures and set the guidelines of how they must be used.
: How does horizontal growth differ from vertical growth as a corporate strategy? From concentric diversification?
Answer:
Explanation:
Horizontal Growth is a growth in which the company extend its business by obtaining larger share of its market by acquiring its competitors.
Example: Apple iphone acquires samsung.
Vertical growth is growth in which company acquires another entity in it's supply chain there are two kinds of vertical growth:
1) Backward : in this growth the company acquires its suppliers such as car assembling Company acquires Tyre supplying company.
2) Forward : in this growth the company enters in to customers market by acquiring its customers such as leather production company acquires shoe making company.
Francum Company has the following data: direct labor $237,300, direct materials used $192,900, total manufacturing overhead $250,060, and beginning work in process $30,450.
Compute (a) total manufacturing costs and (b) total cost of work in process.
Total manufacturing costs
Total cost of work in process
Answer:
(a) $680,260
(b) $710,710
Explanation:
Given that,
Direct labor = $237,300
Direct materials used = $192,900
Total manufacturing overhead = $250,060
Beginning work in process = $30,450
(a) Total manufacturing costs:
= Direct materials used + Direct labor + Total manufacturing overhead
= $192,900 + $237,300 + $250,060
= $680,260
(b) Total cost of work in process:
= Beginning work in process + Total manufacturing costs - Closing work in process
= $30,450 + $680,260 + $0
= $710,710
The scientific method ________. results in conclusions based on speculation cannot prove a hypothesis to be true results in the proving of a theory now has been replaced by a widely accepted shortcut that is less time-consuming and less expensive involves testing observations to derive a working hypothesis Section: 1.3 Bloom's Taxonomy: Knowledge/Comprehension
Answer:
The correct answer is letter "B": cannot prove a hypothesis to be true.
Explanation:
The scientific method is the proper procedure or instrument of science to obtain an explanation of things. Thanks to the scientific method it is possible to manage, combine, and use those things. Besides, it allows us to prove if a hypothesis deserves to be considered a Law. Without proof, the scientific method cannot prove if a hypothesis is true.
Elston Company has entered into a lease agreement for office equipment which could be purchased for $39,927. Elston Company has, however, chosen to lease the equipment for $10,000 per year, payable at the end of each of the next 5 years. Calculate the implied interest rate for the lease payments.
Answer:
The implied interest rate for the lease payments is 8%.
Explanation:
The implied interest rate (or interest rate implicit in lease) is the rate at which minimum lease payment is equal to current fair value (present value) of asset leased out. Using the following formula we can easily calculate implied interest rate for the lease payments. Detail calculation is given below.
PV = MLPS (1-(1+interest rate%)^-period)/i
39,927 = 10,000 (1-(1+I)^-5)/I
3.9927 = Anuity factor
(using annuity table)
Interest = 8%
How relevant are references when information about an applicant can be easily located through an online search of blogs, social networking sites, and news sources?
Answer:
References are former colleagues and supervisors who can vouch for your performance in past companies where you worked. References are the best way an employer can get information on past work experience, performance, and work ethic
It is a way to also cross-check the information given by the applicant for accuracy. They also give insight on your skills, strengths, and achievements.
Explanation:
Challenger Factory produces two similar products: regular widgets and deluxe widgets. The total factory overhead budget is $630,400 with 330,800 estimated direct labor hours. Deluxe widget production requires 4 direct labor hours for each unit, and regular widget production requires 6 direct labor hours for each unit.
Final answer:
Economies of scale and widget production costs.
Explanation:
Economies of scale refer to the cost advantages that a business can achieve by increasing its output. In the case of Challenger Factory, producing more units of widgets can lower the average cost per unit due to economies of scale.
Calculating the costs for regular and deluxe widgets based on direct labor hours can help determine the optimal production quantities and cost structures for each type of widget.
Understanding the relationship between production volume, costs, and pricing can assist in making informed decisions regarding maximizing efficiency and profitability in widget production.