Any agreement should, as a part of the services provided, allow your organization to __________ your disaster recovery plan. Select one: a. test b. develop c. monitor d. All of the above

Answers

Answer 1

Answer:

The correct answer is A. Test.

Explanation:

A test is different from an experiment: Before performing a test, there is an expected result. The test is performed to show this result. In an experiment, the result is open. Very often, tests are performed as part of an experiment.


Related Questions

Identify the many factors that affect decisions on location. Identify the many factors that affect decisions on a firm’s location strategy. Why is it important for a firm to have a location strategy?

Answers

Answer:

Location plays a pivotal role in development of business for both manufacturing and service industry. There are many factors which are directly affect the decisions related to the strategy of business.

Few of them are briefly discussed.

1. Competition

The competition especially in service and retail industry is primarily dependent on location. If you are the only player in the locality then you can have competitive advantage over others. Also some firms prefer the clustering strategy and select location where competition is fierce.

2. Labor

The labor in most of the manufacturing industries will be from local neighborhood and if the business require labor intensive with particular skills, the location will definitely affect the strategic decisions.

3. Logistics

Manufacturing industries are mainly dependent on the inbound logistics as they will supply raw materials and will be converted into products. The proximity of the raw materials plays in important role while deciding the location of a business.

4. Political Risk

If the location where a firm wants to operate has political risks involved, it definitely will consider other option. Thus it also plays an important role for selecting the location.

5. Community

The ethnicity and overall demography of the community can affect the performance of the business and thus must be accounted for while developing a business strategy.

6. Taxation and Government Policies

Some governments have developed industrial states and zones where tax rebates are offered and industries are clustered with better infrastructure. Thus it also becomes an important factor to be considered.

These are some of the factors which affect the location strategy.

Importance of having location strategy

As it is evident from the above mentioned factors that location strategy can play an important role in deciding what kind of business a firm is looking into and how it will be done. Also location strategy becomes important because it has many factors which will affect the unit cost of the product being manufactured. The pricing and marketing strategy will also depend on the location.

Therefore, almost all the functions of a business are affected by the location strategy which makes it important to develop after careful analysis.

If Roten Rooters, Inc., has an equity multiplier of 1.49, total asset turnover of 1.50, and a profit margin of 5.9 percent, what is its ROE? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Answers

Final answer:

To calculate the return on equity (ROE), you need to multiply the equity multiplier (1.49), the total asset turnover (1.50), and the profit margin (5.9 percent). This will yield the ROE which should be represented in a percentage form.

Explanation:

The subject of the question refers to three key financial indicators: equity multiplier, total asset turnover, and profit margin.

The return on equity (ROE) can be calculated by multiplying these three values together.

In this case, the equity multiplier of Roten Rooters, Inc., is 1.49, the total asset turnover is 1.50, and the profit margin is 5.9 percent (or 0.059 in decimal form).

Therefore, you can calculate ROE by following this formula: Equity Multiplier ×Total Asset Turnover ×Profit Margin.

So, 1.49 (Equity Multiplier) ×1.50 (Total Asset Turnover) × 0.059 (Profit Margin) = _______. Calculate this to get your ROE.

This will yield the ROE in decimal form, which can be converted to a percentage by multiplying by 100.

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Carol Bates, a young, dynamic, and affluent banker, likes to shop online and try out new products. She likes to keep herself updated about the latest products introduced in the market. She is usually the first among her friends to buy the latest gadgets.
What trait best describes Carol?

Answers

"Innovative" traits best describes Carol

Explanation:

Based on the given statement, Carol Bates is very much interested in grabbing the latest gadgets. It means that,

Carol is updatedAdaptable to changeHave exploring capability to upgradeA technology savvyMonitors market and has good knowledge on current trendsSelf-motivated to be on trackHas creative skills to use the latest gadgets

All the above qualities describes that Carol Bates is innovative.

Galen Company income under variable costing is $1,050,000. Fixed production costs in ending inventory are $300,000 and $250,000 in beginning inventory. What is Galen Company's income under absorption costing?

Answers

Answer:

Income under absorption costing = $1,100,000

Explanation:

Marginal and absorption costing are two different methods to deal with fixed production overheads and and decide whether or not they are included in valuation of inventory.

Valuation of inventory

Opening and closing inventory are valued at variable cost under variable costing.  Whereas in absorption costing, opening and closing inventory are valued at full production cost (including fixed production overheads).

Reconciling profits reported under two different methods

When inventory levels increase or decrease during a period then profits will differ under absorption and marginal costing because of fixed production cost.

Net Income under absorption costing = Income under variable costing + fixed production cost in ending inventory – fixed production cost in beginning inventory

= $1,050,000 + $300,000 - $250,000

= $1,100,000

Which of the following organizations would be MOST likely to face a dynamic/complex environment? a. Oracle b. Whirlpool c. JCPenney d. Tyson Foods e. Merck

Answers

Answer:

The correct answer is letter "A": Oracle.

Explanation:

Dynamic-complex organizations are those with diverse operations that are constantly changing because of the rapid development of their industry. Firms that fall into this category are mainly technological which products tend to have a short life cycle.

Thus, American cloud-solutions company Oracle can be described as one having dynamic-complex processes.

Tina's Track Supply's market-to-book ratio is currently 4.5 times and PE ratio is 10.5 times. If Tina's Track Supply's common stock is currently selling at $100 per share, what is the book value per share and earnings per share? Multiple Choice $450, $1,050, respectively $1,050, $450, respectively $22.2222, $9.5238, respectively $9.5238, $22.2222, respectively

Answers

Answer:

$22.2222, $9.5238, respectively

Explanation:

The market-to-book ratio is given by a share's market value divided by its book value, if shares are selling for $100 on the market, the book value is:

[tex]B = \frac{\$100}{4.5}=\$22.2222[/tex]

The price to earnings ratio (PE ratio) is determined as a share's price divided by the earnings per share. Earnings per share are:

[tex]E=\frac{\$100}{10.5}\\E=\$9.5238[/tex]

The book value per share and earnings per share are $22.2222, $9.5238, respectively

Domingo Corporation makes a variety of headphones with logos. The company has discovered a new market for wireless headphones with logos. Market research indicates that these headphones would sell well in the market priced at $34.80 each. Domingo desires an operating profit of 20 percent of costs.
Required:

What is the highest acceptable manufacturing cost for which Domingo would be willing to produce the headphones?

Answers

Answer:

Manufacturing cost= $29 per unit

Explanation:

Giving the following information:

Market research indicates that these headphones would sell well in the market priced at $34.80 each. Domingo desires an operating profit of 20 percent of costs.

To calculate the cost we need to use the following formula:

manufacturing cost= selling price/ (1 + mark up) = 34.8/1.20= $29

Final answer:

The highest acceptable manufacturing cost for Domingo Corporation to produce wireless headphones is $29.00.

Explanation:

To determine the highest acceptable manufacturing cost for the wireless headphones, we need to calculate the target cost. The operating profit desired by Domingo is 20% of the costs. So, we can calculate the target cost as follows:

Target cost = Desired profit / Percentage of profit

In this case, the desired profit is 20% of the cost, and the cost is the manufacturing cost. Let's calculate:

Target cost = ($34.80 / 1.2)

Target cost = $29.00

Therefore, the highest acceptable manufacturing cost for which Domingo would be willing to produce the headphones is $29.00.

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Which leadership style focuses on limiting supervision and promoting individualistic decision making?

Answers

Answer:

The answer is laissez-faire leadership style

Explanation:

In laissez-faire leadership style the leader gives authority to employees, subordinates are allowed to work as they choose with a minimum interference. Communication flows horizontally in a firm that uses this leadership style.

Reginald looked for work for six months but could not find a job to his liking. He now spends his time at the beach. For purposes of employment he is considered: A. unemployed. B. out of the labor force. C. underemployed.

Answers

Answer:

The answer is B. Out of labor force.

Explanation:

An asset would be debited and a liability would be credited if the business
Question options:

bought equipment on account.

incurred an expense and paid it.*not the answer*

bought supplies for cash.

incurred an expense and didn't pay for the expense immediately.

Answers

Final answer:

When buying equipment on account, a business debits the asset account for equipment and credits the liability account, reflecting an increase in assets and liabilities respectively. This maintains the balance in the T-account and adheres to the accounting equation.

Explanation:

Understanding T-Accounts and Transactions

When a business bought equipment on account, it means that the business acquired equipment without immediate cash payment, promising to pay the supplier in the future. In accounting, this transaction is recorded in T-accounts by debiting the asset account for the equipment, as it represents something of value the business now owns. Simultaneously, the liability account is credited, reflecting the business's obligation to pay the supplier. Debiting increases the asset's balance, while crediting increases the liabilities, keeping the accounting equation (Assets = Liabilities + Owner's Equity) in balance.

For example, if a company purchases a $5,000 piece of equipment on account, the equipment account (asset) is debited by $5,000, and accounts payable (liability) is credited by $5,000.

T-Account Structure and Bank's Balance Sheet

The T-account layout includes assets on the left and liabilities and owner's equity (net worth) on the right. A bank uses T-accounts to manage and track its financial instruments such as loans, reserves, and securities. A bank's balance sheet also reflects these categories with assets like cash and loans made, liabilities such as customer deposits, and the net worth which is the difference between total assets and total liabilities and is also known as bank capital.

John would like to save $1,500,000 by the time he retires in 30 years and believes he can earn an annual return of 8%. How much does he need to invest each year to achieve his goal?

Answers

Answer:

he need to invest $13,241 each year to achieve his goal

Explanation:

Target Saving Amount = Future value = F = $1,500,000

Number of years = n = 30 years

Inyterest rate = r = 8% = 0.08

Invetment to be made = P = ?

Use following formula to calculate Invetment amount

F = P x ([1 + r]^n - 1 )/r

P = F / ([1 + r]^n - 1 )/r

P = 1,500,000 / ([1 + 0.08]^30 - 1 )/0.08

P = 1,500,000 / 113.2832

P = 13241.15

Lee Financial Services pays employees monthly. Payroll information is listed below for January 2016, the first month of Lee's fiscal year. Assume that none of the employees exceeded any relevant wage base.
Salaries $ 500,000
Federal income taxes to be withheld 100,000
Federal unemployment tax rate 0.60 %
State unemployment tax rate (after FUTA deduction) 5.40 %
Social security tax rate 6.20 %
Medicare tax rate 1.45 %
Required:
a. Calculate the income and payroll taxes for the January 2016 pay period.
b. Prepare the appropriate journal entries to record salaries and wages expense (not paid) and payroll tax expense for the January 2016 pay period.

Answers

Final answer:

To calculate the income and payroll taxes for the January 2016 pay period, we need to consider the tax rates and deductions provided. The income taxes are $152,500 and the payroll taxes are $68,070. We can record the journal entries for the salaries and payroll tax expenses.

Explanation:

To calculate the income and payroll taxes for the January 2016 pay period, we need to consider the various tax rates and deductions provided. The salaries for the pay period are $500,000. The federal income taxes to be withheld are $100,000. The federal unemployment tax rate is 0.60%, state unemployment tax rate is 5.40%, social security tax rate is 6.20%, and medicare tax rate is 1.45%.

To calculate the income taxes, we multiply the gross salary by the federal income tax rate: $500,000 * 0.305 = $152,500.

To calculate the payroll taxes, we multiply the gross salary by each respective tax rate: federal unemployment tax: $500,000 * 0.006 = $3,000, state unemployment tax: ($500,000 - $3,000) * 0.054 = $26,820, social security tax: $500,000 * 0.062 = $31,000, medicare tax: $500,000 * 0.0145 = $7,250.

To record the journal entries, we will debit Salaries expense for $500,000 and credit Salaries payable for $500,000. We will also debit Payroll tax expense for $68,070 ($3,000 + $26,820 + $31,000 + $7,250) and credit Payroll taxes payable for $68,070.

A skilled nursing–facility chain is considering building a new facility on a piece of property that it currently owns. The property was purchased five years ago for $250,000 and could be sold now at a current market value of $100,000. When estimating the cash flows for the new facility, what amount should be included to recognize the opportunity cost of using the land for the proposed project?

a. $0 (the land is a sunk cost)
b. -$150,000
c. $250,000
d. $100,000
e. -$100,000

Answers

Answer:

correct option is e. -$100,000

Explanation:

given data

purchase time period = 5 year

property purchased = $250,000

current market value = $100,000

solution

we know property is 5 year old so here salvage value of  building that would be realized when there is not engaged in any new project that shall be taken as a opportunity cost

so that  it will be taken as here cash outflows

so correct option is e. -$100,000

Northwest Hospital is a full-service hospital that provides everything from major surgery and emergency room care to outpatient clinics.

For each cost incurrect at Northwest Hospital, indiciate whether it would most likely be a direct cost or an indirect cost of the specified cost object by listing the number and a "D" for direct or an "I" for indirect. For example: 1D, 2D, etc.Cost / Cost Object1 The wages of pediatric nurses / The pediatric department2 Prescription drugs / A particular patient3 Heating the hospital / The pediatric patient4 The salary of the head of pediatrics / The pediatric patient5 The salary of the head of pediatrics / The particular pediatric patient6 Hospital chaplain's salary / A particular patient7 Lab tests by outside contractor / A particular patient8 Lab tests by outside contractor / A particular department

Answers

Answer:

1.- Direct, the nurses wages are linked to the deparment

2.-Direct, the cost of the drug for the patient will be linked to it

3.-Indirect there is no direct relationship between the heat cost and the patient

4.-Indirect as is cannot be linked to all patient is indirect overhead

5.-Indirect as is cannot be linked to a patient is indirect overhead

6.-Indirect as is cannot be linked to a patient is indirect overhead

7.-Direct as the particular patient is the one requiring this test

8.-Direct as this cost can be linked to a study related to the department activity

Explanation:

Final answer:

Costs at Northwest Hospital can be categorized as direct (D) or indirect (I) based on their relation to specific cost objects. Direct costs are easily attributable and indirect costs are more general across the institution, such as administrative salaries or facility-wide expenses.

Explanation:

Identifying whether a cost is direct or indirect for a specified cost object at Northwest Hospital involves understanding their correlation. A direct cost can be easily attributed to a cost object, whereas an indirect cost is not directly tied to a specific cost object and often relates to supporting the organization as a whole.

D: The wages of pediatric nurses are a direct cost to the Pediatric department because they work specifically in that area.

D: Prescription drugs are a direct cost to a particular patient when they are specifically for that patient's treatment.

I: Heating the hospital would be considered an indirect cost to the pediatric patient, as it is a facility-wide expense.

I: The salary of the head of pediatrics is an indirect cost to the pediatric patient since it is a general administrative cost.

I: The salary of the head of pediatrics is also an indirect cost to the particular pediatric patient, again due to its administrative nature.

I: Hospital chaplain's salary is an indirect cost to a particular patient since the chaplain serves the whole institution.

D: Lab tests by outside contractor are a direct cost to a particular patient when they are ordered for that patient's diagnosis or treatment.

D: Lab tests by outside contractor are a direct cost to a particular department if they are specific to their operations.

Gabe Industries sells two​ products, Basic models and Deluxe models. Basic models sell for $ 44 per unit with variable costs of $ 25 per unit. Deluxe models sell for $ 52 per unit with variable costs of $ 25 per unit. Total fixed costs for the company are $ 1 comma 323.00. Gabe Industries typically sells three Basic models for every Deluxe model.
What is the breakeven point in total​ units?
a. 50 units
b. 63 units.
c. 29 units.
d.32 units

Answers

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Basic models sell for $ 44 per unit with variable costs of $ 25 per unit. Deluxe models sell for $ 52 per unit with variable costs of $ 25 per unit. Total fixed costs for the company are $1,323. Gabe Industries typically sells three Basic models for every Deluxe model.

First, we need to calculate the weighted sales participation:

Basic= 3/4= 0.75

Deluxe= 1/4= 0.25

Now, we need to calculate the weighted average selling price and variable cost:

weighted average selling price= (selling price* weighted sales participation)= (44*0.75 + 52*0.25)= 46

weighted average variable cost= (variable cost* weighted sales participation)= (25*0.75 + 25*0.25)= 25

Now, we can calculate the break-even point in units:

Break-even point (units)= Total fixed costs / (weighted average selling price - weighted average variable expense)

Break-even point= 1,323/ (46 - 25)= 63 units

. Pratt was able to see the issue with student loans after she personally declared bankruptcy. Investors she spoke with in Silicon Valley thought parents should just pay off the loans. Their differences in view can be explained because of the __________ theory.a. deontologicalb. utilitarian ethicalc. casuist ethicald. moral relativism

Answers

Answer: D. Moral relativism

Explanation: The theory of moral relativism helps resolves issues bordering on truth and falsehood. It states that the truth or falsity of moral judgments, or their justification, is not absolute or universal, but is relative to the traditions, convictions, or practices of a group of persons concerned. With respect to justification, it says that judgment may be justified in one society but not in another. Here, no standpoint is uniquely privileged over all others, Pratt's, the investors or parents as the case may be.

Lisa and Eric were notified that replacement cost coverage is in effect on a home​ owner's policy only if the home is insured for at least​ 80% of its replacement cost. This provision is known as theA) Replacement Cost Rule. B) 80 Percent Rule. C) Replacement Cost Provision. D) none of the above.

Answers

Answer:

The correct answer is letter "B": 80 Percent Rule.

Explanation:

The Pareto Principle -also known as the 80-20 rule- states that 80% of the results are attributable to 20% of the causes. It is a guide that helps people to focus their efforts on the 20% that is important knowing the other 80% is of minor consequence. The Pareto Principle was developed by 20th-century business scholar Joseph Juran (1904-2008) who named the rule after Italian economist Vilfredo Pareto.

The school of philosophy that acknowledged the gods but taught that they had no influence on human life and that the principle goods of human life were contentment and pleasure, meaning a life free from fear and suffering, was inspired by which of the following?A. DemocritusB. EpicurusC. ZenoD. Socrates

Answers

Answer:

The correct answer is letter "B": Epicurus.

Explanation:

Greek philosopher Epicurus (341 b.C. - 270 a.C.) was immortalized in the Latin poem "On the nature of things" -Lucrecio- in which Epicurus is attributed that the object of wisdom is to suppress the obstacles that oppose to happiness. This does not imply the pursue of unbridled pleasure, but of a measured lifestyle in which the spirit can enjoy friendship and the cultivation of knowledge.

If a gain of $5,634 is realized in selling (for cash) office equipment having a book value of $59,856, the total amount reported in the Cash flows from investing activities section of the statement of cash flows is a.$5,634 b.$59,856 c.$54,222 d.$65,490

Answers

Answer:

d. $65,490

Explanation:

A cash flow statement (CFS) is a financial statement shows the amount of cash and cash equivalents that has entered and left an organisation. It only deals in cash and cash equivalents.

From the question, the sale for cash of office equipment with a book value of $59,856 at profit of $5,634 will be recorded in the Cash flows from investing activities section of the CFS based on the actual cash that entered the company. In this case, the total cash received from the sale and which is the actual cash that entered the company in respect of this transaction is the addition of the book value of $59,856 and the gain of $5,634 which is approximately $65,490.

Therefore, the total amount reported in the Cash flows from investing activities section of the statement of cash flows is $65,490.

I wish you the best.

An entrepreneur is planning to start a factory to produce high-tech plastic containers in high volumes. She will use either an assembly line or batch process and has selected two possible sites, one in a small town and one in a big city. She has discovered the following: Based on the information just presented, which of the following should be chosen? A. Assembly line in city. B. Assembly line in small town. C. Batch process in city. D. Batch process in small town.

Answers

Answer:

(A). Assembly line in city.

Explanation:

In an assembly line manufacturing process, production is continuous. It involves adding parts to the product as it moves from one stage to another and is good for producing in high volumes.

Batch production is better for producing similar items in groups.

An assembly line in a city should be used by an entrepreneur who wants to produce high-tech plastic containers in high volumes because it is more efficient.

Answer:

Assembly line in a city

Explanation:

The question is to determine whether to start an assembly line or batch process in either a big city  or a small town

Assembly Line

An assembly line represents a manufacturing process where a product continues to move from one workstation to another while relevant parts are progressively added from one station to another until the product is completed

Batch Processing

The batch processing type of manufacturing is such that a group of products are completed simultaneously or at the same time.

Based on this understanding,

It is advisable for the entrepreneur to select Assembly line in a city because since the production of the high-tech plastic containers will be produced in high volumes, then their is need access a large amount of capital to commence.

Secondly, the type of labour that will be required to carry out such work in the factory will be better accessed in the city .

Thirdly, an assembly line is more favourable to ensure quality process for the products since they are high tech in nature and close monitoring is required.

The following is a partial year-end adjusted trial balance. Account Title Debits Credits Sales revenue $ 460,000 Loss on sale of investments $ 54,000 Interest revenue 6,500 Cost of goods sold 240,000 General and administrative expense 56,000 Restructuring costs 58,000 Selling expense 33,000 Income tax expense ? Income tax expense has not yet been recorded. The income tax rate is 25%. a. Determine the operating income (loss). b. Determine the income (loss) before income taxes.

Answers

Answer:

a) Operating Income = $73,000

b) Net income before income tax = $25,500

Explanation:

First part of the question is to determine the operating income or loss of the business

It is calculated as follows

Particulars                                          Amount

Sales Revenue                                  $460,000

Subtract: Cost of goods sold           ($240,000)

General and Administrative exp.       ($56,000)

Restructuring Costs                             ($58,000)

Selling Expenses                                  ($33,000)

Operating Income                             $73,000

Second part is to determine the income or loss before income taxes

Particulars                                            Amount

Operating Income                                 $73,000

Add: Interest Revenue                         $6,500

Deduct:Loss on sales of investment  ($54,000)

Income before Income Tax                  $25,500

Finally, the Net Income or loss after Income tax

$25,500 x .25 = $6,375

Final answer:

The operating income is $73,000 and the income before income taxes is $25,500. The income tax expense is $6,375.

Explanation:

The operating income (loss) can be determined by subtracting the cost of goods sold and operating expenses from the sales revenue. In this case, the operating income (loss) would be $460,000 - $240,000 - $56,000 - $58,000 - $33,000 = $73,000 operating income.

The income (loss) before income taxes can be calculated by subtracting the loss on sale of investments and the interest revenue from the operating income (loss). In this case, the income (loss) before income taxes would be $73,000 - $54,000 + $6,500 = $25,500 income before income taxes.

To determine the income tax expense, we need to multiply the income (loss) before income taxes by the income tax rate of 25%. Therefore, the income tax expense would be $25,500 x 0.25 = $6,375 income tax expense.

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The adjusted trial balance of Armstrong Corporation at December 31 shows that sales revenue for the year was $ 520 comma 000 and other revenue was $ 47 comma 000. Cost of goods sold for that same period was $ 295 comma 000​, while other expenses totaled $ 200 comma 000. The corporation declared and paid dividends of $ 15 comma 000 during the year. The balance of retained earnings before closing entries was $ 490 comma 000.

1. Prepare the closing entries for revenues, expenses, and dividends for the year.

Answers

Final answer:

Closing entries zero out the temporary accounts (revenues, expenses, and dividends) for the new fiscal year. In this case, the appropriate entries include debits to Sales Revenue and Other Revenue, a credit to Income Summary for the sum of those amounts, debits to Income Summary and credits to Cost of Goods Sold and Other Expenses, a debit to Retained Earnings and matching credit to Income Summary, and finally a debit to Retained Earnings and credit to Dividends.

Explanation:

The closing entries in accounting purposefully zero out the balances of businesses' temporary accounts (revenues and expenses) to start fresh in the new fiscal year. Dividends are also temporary accounts treated the same way, reducing retained earnings without affecting income. Considering the given figures, the appropriate closing entries for Armstrong Corporation would be as follows:

Sales Revenue $520,000 debit to close the account, Other Revenue $47,000 debit to close the account, and Income Summary $567,000 credit (which is the sum of these revenues). Income Summary $495,000 debit (the sum of Cost of Goods Sold $295,000, and Other Expenses $200,000) and each of these accounts credit to close. Retained Earnings $72,000 debit (the difference between the two sums in Income Summary) and Income Summary $72,000 credit to close it. Retained Earnings $15,000 debit and Dividends $15,000 credit to close the dividends account.

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A company has a $20 million portfolio with a beta of 1.2. It would like to use futures contracts on a stock index to hedge its risk. The index futures is currently standing at 1080, and each contract is for delivery of $250 times the index. What is the hedge that minimizes risk? What should the company do if it wants to reduce the beta of the portfolio to 0.6?

Answers

Answer:

Part A:

Number of contracts=[tex]\frac{1.2*20,000,000}{270000}[/tex]

Number of contracts=88.889≅ 89 contracts.

The hedge that minimizes risk is to short 88 contracts

Part B:

Number of contracts=[tex]\frac{(0.6-1.2)*20,000,000}{270,000}=-44.44[/tex]

Number of contracts≅-44

The company should short 44 futures contracts.

Explanation:

Part A:

The formula we are going to use is:

Number of contracts=[tex]\frac{\beta*Portfolio\ Value}{Futures\ Value}[/tex]

Future Value=Index futures*Multiplier

Future Value=1080*$250

Future Value=$270,000

Number of contracts=[tex]\frac{1.2*20,000,000}{270000}[/tex]

Number of contracts=88.889≅ 89 contracts.

The hedge that minimizes risk is to short 88 contracts

Part B:

Number of contracts=[tex]\frac{(\beta'-\beta)*Portfolio\ Value}{Futures\ Value}[/tex]

where:

[tex]\beta'[/tex] is the new value=0.6

[tex]\beta[/tex]=1.2

Future Value=$270,000 (Calculated above)

Number of contracts=[tex]\frac{(0.6-1.2)*20,000,000}{270,000}=-44.44[/tex]

Number of contracts≅-44

The company should short 44 futures contracts

Which of the following statements correctly characterizes the elasticity of demand for food? a. While food demand is not very responsive to changes in price, increases in income produce big increases in the demand for food. b. As income increases, the quantity demanded of food decreases. c. If the price of food falls by 5 percent, quantity demanded will rise by less than 5 percent. d. People consume the same amount of food regardless of the price of food.

Answers

Answer:

b. As income increases, the quantity demanded of food decrease

Explanation:

food weights for individuals whose income is sufficient enought to keep them healty and feed will not increase their food consumption much else. That's because, their already have it covered and want to saisfy new needs

The demand for food is only high at low levels of income.

Wildhorse Corp. has total current assets of $12,152,000, current liabilities of $5,849,000, and a quick ratio of 0.94. How much inventory does it have?

Answers

Answer:

Wildhorse Corp. has inventory of $6,653,940

Explanation:

The quick ratio is a liquidity ratio that indicates a company's ability to pay its current liabilities when they come due without needing to sell its inventory or get additional financing. The quick ratio is calculated by the following formula:

Quick ratio = (Cash & equivalents + Short Term investments + Accounts receivable)/Current Liabilities

(Cash & equivalents + Short Term investments + Accounts receivable) = Quick ratio x Current Liabilities = 0.94 x $5,849,000 = $5,498,060

Inventory = Total current assets - (Cash & equivalents + Short Term investments + Accounts receivable) = $12,152,000 - $5,498,060 = $6,653,940

Vaughn Manufacturing's prepaid insurance was $197000 at December 31, 2021 and $90300 at December 31, 2020. Insurance expense was $62000 for 2021 and $55000 for 2020. What amount of cash disbursements for insurance would be reported in Vaughn's 2021 net cash provided by operating activities presented on a direct basis?

Answers

Answer:

Cash disbursements for insurance would be $ 168,700.

Explanation:

In accrual based accounting expenses are recorded when they are incurred. The payment against item purchased does not make it qualified to be recorded as expense. Any advance payment made is recognize as asset untill performance obligation has been completed. So in order to determine amount of payment we will use following accounting equation.

Payments = Prepaid current period + expenses - opening prepaid balance

Payments = 197,000 + 62,000 - 90,300 = $ 168,700

Global Enterprises has just signed a $3 million contract. The contract calls for a payment of $.5 million today, $0.9 million one year from today, and $1.6 million two years from today. What is this contract really worth if Global Enterprises can earn 12 percent on its money?

Answers

Answer:

$2.579 million

Explanation:

To obtain the real worth of the contract, the $0.9 million payment must be brought back by one period at a 12% rate while the $1.6 million payment must be brought back by  two periods at a 12% rate. The present value of the contract is:

[tex]P = 0.5+\frac{0.9}{(1+0.12)} +\frac{1.6}{(1+0.12)^2}\\P=\$2.579\ million[/tex]

Global Enterprises' contract is actually worth $2.579 million.

Advantages of database approaches to AIS include: a. periodic reporting in accordance with GAAP b. real-time reporting as and when significant events occur and whenever required c. filtering data as events occur rather than when reports are generated d. both a. and b. e. both a. and c.

Answers

Answer:

b. real-time reporting as and when significant events occur and whenever required.

Explanation:

The aim of an AIS is to gather, archive, analyze and report on financial and accountant data that management or other parties involved may use in order to carry management decisions. Only the container for data storage is a database A database may be a computer, a structured data system, or a cabinet.

You are starting medical school today. Becoming a doctor is your lifetime dream, so you started saving money when you were little. You now have $200,000 in your account, and you are going to withdraw annually starting today over the next four years. If you can earn 3 percent interest on the account, how much a year can you withdraw? Round to the nearest cent. Do not include any unit (If your answer is $111.11, then type 111.11 without $ sign.)

Answers

Answer:

$52,238.26

Explanation:

Since he is going to withdraw annually starting today over the next four years, the formula to use to calculate how much to withdraw a year is the formula for annuity due.

Basically, annuity refers to financial investment that pays investors a fixed stream of amount for a specified period. It of two types: ordinary annuity that pays at the end of the period, and annuity due that pays at beginning of the period.

Since our focus here is annuity due, we employ the following annuity due formula:

PV = P × [{1 - [1 ÷ (1+r)]^n} ÷ r] × (1+r)  ....................................... (1)

Where

A

PV = Present value of an annuity due = $200,000

P = yearly withdrawal  = ?

r = interest rate  = 3% = 0.03

n = number of years = 4

Therefore, we have:

200,000 = P × [{1 - [1 ÷ (1+0.03)]^4} ÷ 0.03] × (1+0.03)

200,000 = P × [{1 - [1 ÷ (1.03)]^4} ÷ 0.03] × (1.03)

200,000 = P × [{1 - [1 ÷ 1.12550881]} ÷ 0.03] × (1.03)

200,000 = P × [{1 - 0.888487047915689} ÷ 0.03] × (1.03)

200,000 = P × [0.111512952084311 ÷ 0.03] × (1.03)

200,000 = P × 3.71709840281037 × 1.03

200,000 = P × 3.82861135489468  

Rearranging, we have:

P = 200,000 ÷ 3.82861135489468

P =  52,238.26  

Therefore, $52,238.26 can be withdrawn a year.

In which of the following cases will the effect on equilibrium output be indeterminate (i.e., depend on the magnitudes of the shifts in supply and demand)? a. Demand increases and supply increases b. Demand decreases and supply decreases c. Demand decreases and supply increases d. Demand remains constant and supply increases

Answers

Answer:

c. demand decreases and supply increases

Explanation:

Equilibrium level of output refers to that level of output at which demand equals supply.

If demand decreases, the demand curve will experience a leftward shift. When supply increases, the supply curve shifts to the right. This results into suppliers supplying more and customers demanding lesser.

This will lead to a decrease in equilibrium price but in such a case, the effect on equilibrium quantity cannot be determined i.e the output would be indeterminate.

Final answer:

When both demand and supply increase, the effect on equilibrium output is considered indeterminate due to multiple possible outcomes. It can stay the same, increase, or decrease depending on whether the increase in demand is equal to, is greater than, or falls short of the increase in supply. The elasticity of demand can also play a role.

Explanation:

The subject matter is concerned with the effect on equilibrium output when there is a shift in both demand and supply. Among the provided options, the effect on equilibrium output would be indeterminate in case 'a', where both demand and supply increase. The reason is as follows:

If the increase in both demand and supply is equal, the equilibrium price stays the same but the quantity of output increases.If the increase in demand outweighs the increase in supply, the equilibrium price and quantity both increase.If the increase in supply outweighs the increase in demand, the equilibrium price falls, but the quantity increases.

Because of multiple possible outcomes, the effect on the equilibrium output is said to be indeterminate in this scenario. It's also important to note that elasticity of demand can also influence the change in equilibrium price and quantity.

Learn more about Equilibrium Output here:

https://brainly.com/question/27993527

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