Answer:
$4.33 per share
Explanation:
Given that,
Net income = $1,171,600
Preferred stock dividends paid = $265,400
weighted average of common shares outstanding = 209,100
Therefore,
Earnings per share:
= (Net income - Preferred stock dividends paid) ÷ weighted average of common shares o/s
= ($1,171,600 - $265,400) ÷ 209,100
= $906,200 ÷ 209,100
= $4.33 per share
Hence, the Kingbird 2020 earnings per share is $4.33.
After working for a few years to formulate just the right Greek yogurt product, Chobani decided it eventually wanted to mass-market through grocery stores. After distributing through smaller stores, their word-of-mouth promotions and online presence began driving customer demand. Hamdi Ulukaya made a pricing decision early on to offer the yogurt for around $1. He made the marketing mix pricing decision based on what assumption?
Answer:
Chobani would be successful and have economies of scale
Explanation:
After working for a few years on its Greek yogurt product, Chobani decided it eventually wanted to mass-market through grocery stores. After distributing through smaller stores, their word-of-mouth promotions and online presence began driving customer demand. Hamdi Ulukaya made a pricing decision early on to offer the yogurt for around $1. Hamdi Ulukaya made that decision purely to achieve economies of scale. He wanted take advantage related with the cost of the product. By increasing the sales, scale of operation therefore, can be increased and enhanced which in turn definitely will decrease the per unit cost of the yogurt. In this way, he wanted to go for market control as well. He wanted to be the market leader therefore, it could have been very hard for the competitors to chase his sales down eventually. He applied this phenomenon to the whole company from its pant to production and then to overall company as well. Economies of scale mostly are very much effective particularly for the convenience consumer goods.
A local bank will pay you $100 a year for your lifetime if you deposit $2,500 in the bank today. If you plan to live forever, what interest rate is the bank paying?
Answer:
The interest rate for the perpetuity will be of 4%
Explanation:
The interest rate of a perpetuity will be calcualted as follows:
[tex]\frac{C}{Principal} = rate[/tex]
[tex]\frac{100}{2500} = 0.04[/tex]
The bank will pay an interest rate of 4%
The interest rate payed by the bank for lifetime has been 4%.
Interest rate has been defined as the amount return to the bank at with respect to the principal amount. The interest rate has been given onto the principal at varying percent.
Given,
The principal value of investment, [tex]P=\$2,500[/tex]
The amount paid by bank per year, [tex]A=\$100[/tex]
The interest rate (r) to the base amount has been given by:
[tex]r=\dfrac{A}{P}\;\times\;100\\r=\dfrac{100}{2500}\;\times\;100\\r=4\%[/tex]
The interest rate payed by the bank for lifetime has been 4%.
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A coase solution to a problem of externality insures ensures that a socially efficient outcome is to:
a. internalize the externality through taxes
b. internalize the externality through subsidies
c. maximize the joint welfare, irrespective of the right of ownership.
d. stop production if there is any externality.
e. invite other private partners to share the burden of externality.
Answer:
The correct answer is letter "C": maximize the joint welfare, irrespective of the right of ownership.
Explanation:
Named after British economist Ronald Coase (1910-2013) the Coase Theorem is a legal and economic theory which states that, when there are competitive markets and no transaction costs, bargaining will result in an effective and mutually beneficial outcome irrespective of how property rights are distributed.
Consider the following information attributed to the material management departmentBudgeted usage of materials-handling labor-hours 3,400 Budgeted cost pools: Fixed costs: $146,200 Variable costs: $108,800 (3,400 hours x $ 32 per hour) The company uses the singleminusrate method to allocate support costs to the Machining and Assembly Departments. Assuming that the actual hours tracked in the Machining and Assembly department are 430 for the month, what would be the allocation rate and how much cost would be allocated to the Machining and Assembly Department for the operations of the month? (Round final answers to the nearest dollar.) a. $75 an hour for a total of $32,250 b. $32 an hour for a total of $32,250 c. $32 an hour for a total of $13,760 d. $ 593 an hour for a total of $75
Answer:
a. $75 an hour for a total of $32,250
Explanation:
The computation of the allocation rate and how much cost is to be allocated is shown below:
Fixed cost per hour = $146,200 ÷ 3,400 hours = $43
Variable cost per hour = $32
So, the total cost per hour equal to
= Fixed cost per hour + Variable cost per hour
= $43 + $32
= $75
And, the total cost allocated is
= 430 hours × $75
= $32,250
In July, one of the processing departments at Okamura Corporation had beginning work in process inventory of $26,000 and ending work in process inventory of $31,000. During the month, the cost of units transferred out from the department was $161,000 In the department's cost reconciliation report for July, the total cost to be accounted for under the weighted-average method would be: _________A. $145,000 B. $132,000 C. $192,000 D. $57,000
Answer:
Total cost accounted will be $192000
So option (C) will be correct answer
Explanation:
We have given beginning work in process inventory = $26000
Ending work in process inventory = $31000
And cost of units transferred from the department is $161000
We have to find the total cost accounted
Total cost account will be equal to sum of ending process inventory and cost of units transferred out from the department
So total cost accounted = $31000 + $161000 = $192000
So option (C) will be correct answer
The Mazzanti Wholesale Food Company's fiscal year-end is June 30. The company issues quarterly financial statements requiring the company to prepare adjusting entries at the end of each quarter. Assume all quarterly adjusting entries were properly recorded. On December 1, 2017, the company paid its annual fire insurance premium of $5,200 for the year beginning December 1 and debited prepaid insurance. On August 31, 2017, the company borrowed $85,000 from a local bank. The note requires principal and interest at 8% to be paid on August 31, 2018. Mazzanti owns a warehouse that it rents to another company. On January 1, 2018, Mazzanti collected $22,400 representing rent for the 2018 calendar year and credited deferred rent revenue. Depreciation on the office building is $16,800 for the fiscal year. Employee salaries and wages for the month of June 2018 of $17,500 will be paid on July 20, 2018 Prepare the necessary year-end adjusting entries at the end of June 30, 2018, for the above situations.
Answer:
As all quarterly adjustments have been done the adjustments will be only for the final quarter( April - May- June) and calculations will be accordingly.
Sr. No Accounts Dr. Cr.
June 30 Insurance Expense 1300
Prepaid Insurance 1300
$ 52,00 *3/12= $ 1300
June 30 Interest Expense 1700
Interest Payable 1700
Interest = $ 85,000 * 8/100= $ 6800 , For 3 months the interest would be $6800 * 3/12= $ 1700
June 30 Unearned Rent Revenue 5600
Rent Revenue Earned 5600
Rent Revenue for 3 months would be = $ 22,400 *3/12= $ 5600
June 30 Depreciation Expense 4200
Accumulated Depreciation 4200
Depreciation for 3 months = $ 16,800 *3/12= $ 4200
June 30 Salaries Expense 17500
Salaries Payable 17500
Salaries payable for the month of June
Marielle Machinery Works forecasts the following cash flows on a project under consid- eration. It uses the internal rate of return rule to accept or reject projects. (LO8-2) a. What is the project’s IRR? b. Should this project be accepted if the required return is 12%?
Answer:
a. Project’s IRR is 18.28%
b. Project should be accepted and pursued because it IRR is higher than the required rate of return.
Explanation:
Cash flows are missing a similar question is attached and followoing answer is made accordingly.
Year 0 1 2 3 NPV
Cash flows -$10,000 $0 $7,500 $8,500
PV @ 10% -$10,000 $0 $6,198 $6,386 = $2,584
PV @5% -$10,000 $0 $6,802 $7,342 = $4,144
IRR = 0.05 + ( 4,144 / (4,144-2,584)) x (0.1-0.05) = 18.28%
Crimson Corp. has a component that is a discontinued operation. The component incurred a loss from operations of $40,000. The component was sold with an additional loss of $160,000. The tax rate is 30%. What is the income tax effect for the discontinued operation? A. Income tax expense of $80,000.
B. Income tax benefit of $56,000.
C. Income tax benefit of $80,000.
D. Income tax expense of $56,000.
Income tax benefit of $60,000
Explanation:
Crimson Corp. had a loss from operations Crimson Corp. sold the asset for a loss Crimson Corp. lost money with the asset An income tax benefit was generatedBy adding the losses we get $40,000 + $160,000 = $200,000 Income tax rate @ 30% can be calculated as $200,000 * 30% Income tax benefit = $60,000Paula's basis in her partnership interest is $60,000. In liquidation of her interest, the partnership makes a proportionate distribution to Paula of $20,000 cash and inventory (basis of $5,000 and value of $7,000). (Assume that the partnership also liquidates.)
a. How much gain or loss, if any, will Paula recognize on the distribution?
b. What basis will Paula take in the inventory?
c. What are the tax consequences to the partnership?
d. Can you recommend an alternative distribution? Explain.
e. Would your answer to part (a) or (b) change if this had been nonliquidating distribution? Explain.
Answer:
A) PAULA (LOSS) = $60000 - 20000 - 7000
= $33000
Explanation:
A) PAULA (LOSS) = $60000 - 20000 - 7000
= $33000
B)
Paula will take $7000 in the inventory this is because the market value is considered at the time of liquidation
C)
The business will only pay the amount of tax on the amount realised after setting the liability, this is because the firm is liquidated
D)
The partners may give amount to the Paula without liquidating business and reduce the amount from capital account
E)
If it non liquidating
A) LOSS = $60000-20000-5000
=35000
B)Paula will take $5000 in the inventory as cost is considered at time of liquidation.
Use your knowledge of the challenges new managers face to complete the following sentences.
Among managers, tend to experience the most job burnout and attrition. The activities that managers like the include controlling subordinates, handling paperwork, and managing time pressures.
First-line supervisors tend to burn out, because it is difficult to get used to the fast pace, unrelenting pressure, fragmented work, and high stress that comes with a manager’s job. Successful managers learn that they must delegate work, develop networks, and focus on developing their employees rather than trying to do everything themselves.
Recent research found that both male and female managers across five different countries reported that they _______ enjoy activities such as leading others, networking, and leading innovation.
Answer: The correct answer is MOST
Explanation: Managers in any organization are known to provide the necessary human action inorder for the planned outcomes of the organization to be achieved. In doing the above, the mostly get involved in activities that involve motivating others and meeting people. These activities such as leading others, leading innovations and networking over time tend to be enjoyed as they are not monotonous activities like paperwork.
Final answer:
First-line supervisors are most susceptible to job burnout and attrition due to the challenges of a manager's job, but successful managers often enjoy leading and innovation, and find that clearly communicating expectations and being supportive reduces stress.
Explanation:
Among managers, first-line supervisors tend to experience the most job burnout and attrition. The activities that managers like the least include controlling subordinates, handling paperwork, and managing time pressures. First-line supervisors tend to burn out because it is difficult to get used to the fast pace, unrelenting pressure, fragmented work, and high stress that comes with a manager's job. Successful managers learn that they must delegate work, develop networks, and focus on developing their employees rather than trying to do everything themselves.
Recent research found that both male and female managers across five different countries reported that they generally enjoy activities such as leading others, networking, and leading innovation. Also, to reduce stress and foster a positive work environment, it is essential for managers to make expectations clear. By doing so, employees experience less stress, which in turn reduces the potential for burnout.
Being aware that the need for achievement may lead to micromanaging and overbearing behavior can help individuals adapt their managerial style to be more supportive, thus reducing stress for both managers and their subordinates. Moreover, portraying situations as opportunities for solutions rather than sources of anger can also reduce stress and improve overall workplace dynamics.
If a locally based manufacturing firm with sales of $350 million decided to enter the EU market by setting up operations in France, which orientation would be the most effective: ethnocentric, polycentric, regiocentric, or geocentric
Answer:
Regiocentric
Explanation:
In business, Regiocentric refers to an international business strategy in which a company will obtain their employees from the locals every time they opened up their branch in foreign country.
This will be the most effective for the manufacturing firm in the case above.
Locals people tend to have more understanding about the culture in that place. Meaning that they will communicate more efficiently with one another and they will have more understanding about customers' preference in that country.
The best orientation for a firm expanding into the EU market would most likely be a geocentric approach which views the entire world as a potential market and develops integrated global strategies.
Explanation:For a firm expanding into the EU market, especially setting up operations in France, a geocentric orientation would likely be the most effective approach. This is because a geocentric orientation is one that views the entire world as a potential market and strives to develop integrated global strategies. With this orientation, the firm can build synergies through knowledge transfer, and also adapt themselves to local customs, traditions, and preferences by understanding the unique dynamics of the new market.
An ethnocentric orientation, where the firm applies its home market strategies in the foreign market might not work efficiently due to potential cultural, legal, and business practice differences. A polycentric approach, treating each market separately might lose opportunities for synergy. Lastly, regiocentric centers on a region and can lose sight of global potential.
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Evie must pay an additional tax on the early distribution from her 401(k) of: a. 0% b. 5% c. 10% d. 15%
Answer:
c. 10%
Explanation:
Law Imposes additional 10% tax on early distribution of 401 (k) retirement plan. This law is to discourage the use of retirement fund for other purposes than the retirement plan. Evie want early distribution of her funds so she must pay 10% additional tax on these funds. So option c. 10% is correct for 401(k) retirement plan.
Since becoming a senior vice president at her firm, Malaika has checked in informally with workers who reported concerns related to diversity and unfair treatment and represented the company at job fairs that attract diverse candidates. She has also worked with contractor firms to improve their diversity management of subcontractors. According to the text, which managerial roles has Malaika played? a. monitor, spokesperson, negotiator.b. disturbance handler, resource locator, ally.c. resource allocator, spokes-person, entrepreneur.d. dissembler, monitor, negotiator.
Answer:
The correct answer is letter "A": monitor, spokesperson, negotiator.
Explanation:
The monitoring function of managers implies following up on the performance of the company and each of its components, whether customers, suppliers or employees. As a spokesperson, executives are the face and voice of the firm in front of other entities and the general public. Finally, as negotiators, managers look for coming up with solutions to improve the company's efficiency and productivity, thus, its profits.
Imagine you borrow $500 from your roommate, agreeing to pay her back $500 plus 7 percent nominal interest in one year. Assume inflation over the life of the contract is expected to be 4.25 percent. What is the total dollar amount you will have to pay her back in a year?
What dollar amount of the interest payment is the result of the real rate of interest?
a) What is the total dollar amount?
b) What is the interest payment?
Answer:
a) The total dollar amount = $513.2
b) The interest payment = $13.20
Explanation:
Use following formula to calculate the real interest rate:
1 + Real Interest rate = (1 + Nominal Interest rate ) / (1 + Inflation rate )
1 + Real Interest rate = (1 + 7% ) / (1 + 4.25% )
1 + Real Interest rate = (1 + 0.07 ) / (1 + 0.0425 )
1 + Real Interest rate = 1.07 / 1.0425
1 + Real Interest rate = 1.0264
Real Interest rate = 1.0264 - 1
Real Interest rate = 0.0264
Real Interest rate = 2.64%
a) The total dollar amount
A = P x ( 1 + r )^n = 500 x ( 1 + 0.0264)^1 = $513.2
b) The interest payment
Interest payment = $513.2 - $500 = $13.20
The total dollar amount to pay back is $535, and the amount of interest payment resulting from the real rate of interest is $13.75.
Explanation:The total dollar amount you would need to pay back to your roommate consists of the principal amount of $500 and the nominal interest of 7 %. Therefore, to calculate the total amount you will owe at the end of the year, we need to find the amount of interest first and then we add that to the original $500.
Interest = Principal x Rate of Interest = 500 x 0.07 = $35. Hence the total amount you would have to pay back would be the principal + interest = $500 + $35 = $535.
The dollar amount of the interest payment due to real rate of interest can be calculated by factoring in inflation. Real interest rate is essentially the nominal interest rate minus the expected inflation. So, Real Interest = Nominal Interest - Inflation = 7% - 4.25% = 2.75%. Therefore, the portion of the interest due to the real rate of interest = Principal x Real rate of interest = $500 x 0.0275 = $13.75.
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A check-processing center uses exponential smoothing to forecast the number of incoming checks each month. The number of checks received in June was 42 million, while the forecast was 42 million. A smoothing constant of 0.15 is used. A) What is the forecast for July?B) If the center received 45 million chekcs in July, what would be the forecast for August?C) Why might this be an inappropriate forecasting method for this situation?
Answer:
A. Forecast for July = 42.
B. Forecast for August = 42.45
C. Because of seasonality in the banking industry.
Explanation:
A. Forecast for July = Forecast for June + Smoothing constant x (Forecasting error)
= 42 + 0.15 (42-42) = 42
B. Forecast for August = Forecast for July + 0.15 (Forecasting error)
= 42 + 0.15 (45-42) = 42.45
C. Because there is a great deal of seasonality in the processing requirements of banking industry, this forecasting method (exponential smoothing) might not be appropriate for this situation.
Hitzu Co. sold a copier costing $4,800 with a two-year parts warranty to a customer on August 16, 2015, for $6,000 cash. Hitzu uses the perpetual inventory system. On November 22, 2016, the copier requires on-site repairs that are completed the same day. The repairs cost $209 for materials taken from the Repair Parts Inventory. These are the only repairs required in 2016 for this copier. Based on experience, Hitzu expects to incur warranty costs equal to 4% of dollar sales. It records warranty expense with an adjusting entry at the end of each year.
How much warranty expense does the company report in 2014 for this copier?
How much is the estimated warranty liability for this copier as of December 31, 2014?
Prepare journal entry to record the copier
Answer:
warranty expense 240 debit
warranty liability 240 credit
--to record expected warranty associate with the sale--
warranty liability 209 debit
inventory 209 credit
--to record 2016 warranty cost--
Explanation:
6,000 x 4% = 240
the warrnaty expense and warranty liability created for the 2014 sale
Which transaction increases stockholders' equity? A. payment of operating expenses B. expenses greater than revenues for the period C. dividends that are declared and paid D. sale of common stoc
Answer:
The correct answer is letter "D": sale of common stock.
Explanation:
Stockholders' equity is the equity held by the shareholders in a company. It is determined by the corporation by subtracting its total liabilities from its total assets. The sale or issue of the common stock increases that amount. The result is listed in the firm's Balance Sheet.
Company Expenses Total Assets Net Income Total Liabilities Dreamworks $ 22,000 $ 40,000 $ 19,000 $ 30,000 Pixar 67,000 150,000 27,000 147,000 Universal 12,000 68,000 5,000 17,000 a. Compute the debt ratio for each of the three companies. (Round your answers to 2 decimal places.) b. Which company has the most financial leverage?
Answer:
Expenses Total Assets Net Income Total Liabilities
Dreamworks $22,000 $40,000 $19,000 $30,000
Pixar $67,000 $150,000 $27,000 $147,000
Universal $12,000 $68,000 $5,000 $17,000
Debt ratio: Total Debt / Total Assets
Dreamworks = $30,000 / $40,000 = 0.75
Pixar = $147,000 / $150,000 = 0.98
Universal = $17,000 / $68,000 = 0.25
Financial Leverage: Asset / Equity
Dreamworks = $40,000 / (40,000-30,0000) = 4
Pixar = $150,000 / (150,000-147,000) = 50
Universal = $68,000 / (68,000-17000) = 1.33
Pixar Has the most financial leverage.
Final answer:
The debt ratios for Dreamworks, Pixar, and Universal are 75%, 98%, and 25% respectively, with Pixar having the most financial leverage due to its highest debt ratio.
Explanation:
To compute the debt ratio for each company, you divide the Total Liabilities by the Total Assets. The formula looks like this: Debt Ratio = Total Liabilities ÷ Total Assets. Below are the computed debt ratios for each company:
Dreamworks: $30,000 ÷ $40,000 = 0.75 or 75%Pixar: $147,000 ÷ $150,000 = 0.98 or 98%Universal: $17,000 ÷ $68,000 = 0.25 or 25%The company with the most financial leverage is Pixar, as it has the highest debt ratio, indicating that a greater proportion of its assets are financed through debt.
Identify the critical operations decision areas in an organization and discuss the responsibilities of an operations manager while addressing these decisions.
Explanation:
The responsibilities are broadly classified into Process, Design, plan, control, performance improvement.
Process: The operation manager plays major role in deciding which type of process to be followed so that the organizational goals are reached.
Plan: Huge decision making skill is used in this phase. Because if planning is perfect then half of the work is done.
Control & performance improvement: It is the responsibility of the manager to control the entire operation and also to take decision and find methods to improve the performance.
Will and his fiancée Christy decided to have their wedding on a beach in Acapulco, Mexico. Local businesses provided most of the services for the wedding, such as the limousine and the catering services. Throughout the weekend of the wedding, the couple found that workers and limos arrived late; so did the priest who was performing the wedding. In response to the couple’s frustration, the Mexican workers remarked, "Ustedes tienen que ser flexibles," which in English means "You have to be flexible with time." This attitude regarding time is _____
a. Inflexible.
b. Polychronic.
c. Cultural.
d. Monochronic.
e. One-dimensional
Answer:
The correct answer is letter "B": Polychronic.
Explanation:
Chronemics is the study of how time affects communication. It is used to understand the use of time in different cultures. Monochronic cultures are those who value the use of time so they tend to be alert of their watches. Polychronic cultures, on the other hand, are those who consider time is flexible, fluid and driven not exactly by the minute -it could by hours.
Final answer:
The attitude of being flexible with time as described in the situation is characteristic of a polychronic culture, reflecting a more relaxed approach to scheduling and punctuality.
Explanation:
The attitude regarding time as described by the Mexican workers that Will and Christy encountered is best described as polychronic. In polychronic cultures, people often handle multiple tasks simultaneously and maintain a more fluid approach to scheduling and punctuality. This contrasts with monochronic cultures, where time is segmented and schedules are strictly adhered to. Mexican culture tends to value flexibility and a more relaxed view of time, suggesting a polychronic approach to time management.
Governor Smith of Georgia is presented with the following data: currently the state derives a total of $400 million of benefits from education spending and it only costs $250 million. The legislature proposes increasing spending to $300 million. Quality studies show that this new spending will increase the total benefit of education to $425 million. Choose the correct relevant answer below.
A)
Since the new total benefit of $425 million is so much larger than the new total cost of $350 million, it clearly makes economic sense to spend the extra money according to the Cost-Benefit Principle.
B)
To get the economically wise decision made according to the Cost-Benefit Principle, we need to compare the marginal benefit of $25 million with the total cost of $350 million. This new spending makes no economic sense.
C)
In order to use the Cost-Benefit Principle correctly we need to compare the marginal benefit of the new spending, which is $25 million, with the marginal cost of the new spending, which is $50 million. This new spending makes no economic sense.
D)
Education spending by the state clearly makes no sense under any circumstances according to the Cost-Benefit Principle. As we can see from the data above, there is no amount of spending where the total benefits exceed the total costs.
Answer:
C)
In order to use the Cost-Benefit Principle correctly we need to compare the marginal benefit of the new spending, which is $25 million, with the marginal cost of the new spending, which is $50 million. This new spending makes no economic sense.
Explanation:
The cost-benefit principle in accounting states that the additional benefit must outweigh additional cost in an accounting system.
Spending of $250 million is giving $400 million revenue. The new proposal of spending $300 million to get $425 million implies we are spending extra $50 million to make extra $25 million.
This is not a good investment according to the cost-benefit principle.
The mean amount spent by a family of four on food per month is $700 with a standard deviation of $85. Assuming that the food expenditures are normally distributed, what is the proportion of families of four that spend more than $900 per month?
Using the Z-score formula, we find that only about 0.9% of families of four spend more than $900 per month on food when the expenditures are normally distributed with a mean of $700 and a standard deviation of $85.
To calculate the proportion of families of four that spend more than $900 per month on food, given that the mean amount spent is $700 with a standard deviation of $85 and assuming a normal distribution, we use the Z-score formula: Z = (X - \mean\)/standard deviation, where X is the expenditure we're comparing to the mean.
In this case, Z = ($900 - $700)/$85 \ 2.35. The Z-score tells us how many standard deviations a point is from the mean. Using a standard normal distribution table or calculator, we find that a Z-score of 2.35 corresponds to a percentile roughly around 99.1%. Therefore, the proportion of families spending more than $900 is approximately 1 - 0.991 = 0.009, or 0.9%.
In a question related to approval of President George W. Bush's plan to save social security, the interviewer asks, "Don't you agree that something must be done to save social security?" This question suffers from _____.
A. Sensitive information
B. Double-barreled question
C. Biased wording
D. Frame of reference
E. Recall and memory decay
Answer: The correct answer is d) Frame of reference.
Explanation: Frame of reference refers to a set of criteria or stated values used in measurements or inferring judgements.
The question "Don't you agree that something must be done to save social security?" is a typical case of a frame of reference as it can be inferred that the interviewer already had a frame of mind as such was leading the President.
Determine the amount of money in a savings account at the end of 3 years, given an initial deposit of $9,000 and an annual interest rate of 4 percent when interest is compounded:
Use Appendix Afor an approximate answer, but calculate your final answer using the formula and financial calculator methods.(Do not round intermediate calculations. Round your final answers to 2 decimal places.)Future value:
a.Annually
b. Semiannually
c. Quarterly
Answer:
The correct answer for option (a) is $10,124, option (b) is $10,135 and option (c) is $10,141.
Explanation:
According to the scenario, the given data are as follows:
Initial amount (p) = $9,000
Annual interest rate (r1)= 4%
Semi annual interest rate (r2) = 4% / 2 = 2%
Quarterly interest rate (r3) = 4% / 4 = 1%
Time period ( annual) (n1)= 3 years = 3
Time period ( semi-annual) (n2) = 3 × 2 = 6
Time period ( quarterly) (n3) = 3 × 4 = 12
So, we can calculate future value by using following formula:
A= P ( 1 +r)^n
(a). Putting the value in the formula
A= P ( 1 +r1 )^n1
= $9,000 ( 1 + 4%)^3
= $9,000 x (1.04)^3
= $10,124
(b). Putting the value in the formula
A= P ( 1 +r2 )^n2
= $9,000 ( 1 + 2%)^6
= $9,000 x (1.02)^6
= $10,135
(c.) Putting the value in the formula
A= P ( 1 +r3 )^n3
= $9,000 ( 1 + 1%)^12
= $9,000 x (1.01)^12
= $10,141
View "Types of Distribution Channels." In your own words, describe types of distribution channels and provide an example of each. Discuss the advantages and disadvantages of each using real-world examples. In replies to peers, discuss whether you agree or disagree with the pros and cons they have identified and explain why.
Answer:
The distribution channels are the different entities involved in the business structure and marketing of a product. Its main objective is to ensure that the product is transferred from the factory to the final consumer.
Explanation:
The distribution channels can be classified into:
Consumer goods channels
They are divided into:
Direct channel
It goes from producer to consumer. It is the simplest that exists to distribute consumer goods, as it does not involve intermediaries. Examples: Avon and Amway
Retail Channel
The distribution follows the following scheme: producer-retailer-consumer. It includes all the large supermarket chains and stores. It is the most visible channel for the consumer. Examples: Wal-Mart stores, frequent cars, gas stations.
Wholesale channel
The distribution follows according to the scheme: producer-wholesaler-retailer-consumer. The distribution of medicinal and food products is done using this channel. The goods that are in great demand are distributed through these channels. Examples: travel agencies, small shops in the villages.
Agent/Broker Channel
Follow the following scheme: producer-agent-retailer-consumer. Producers prefer to incorporate intermediary agents to get their products to the retail market. The products are sold to large retail companies. Examples: distribution chains of perishable food and oil.
Double channel
The sale of the product to the consumer is done following the scheme: manufacturer-agent/intermediary-wholesaler-retailer-consumer. Sometimes manufacturers use intermediary agents. These employ wholesalers who sell to large chain stores or small stores. Examples: market franchises and exclusive importers.
The main types of distribution channels are direct selling, wholesaling, and retail. Direct selling involves sales from producers directly to consumers, wholesaling sells in bulk to other businesses, and retail sells directly to the public.
Explanation:Types of Distribution Channels and Their ExamplesDistribution channels are the pathways through which goods and services flow from producers to consumers. Understanding how the channels used will affect demand is crucial for business success. Direct selling, wholesaling, and retail are common distribution channels.
Direct SellingDirect selling occurs when manufacturers sell directly to the consumer. An example of this could be a farmer's market where farmers sell produce directly to customers. The advantage is that it eliminates the middleman, potentially offering a lower price to consumers and a higher profit margin for sellers. However, the disadvantage lies in the limited reach and higher marketing costs.
WholesalingWholesaling involves selling goods in large quantities to retailers or other merchants. For example, a manufacturing firm might sell bulk quantities of its products to a retail chain. The advantage here is the ability to move large volumes of goods quickly. The disadvantage could be the lower margins due to bulk discounts and the dependence on a few large buyers.
RetailFinally, retail distribution involves selling goods directly to the public through various outlets like stores or online platforms. A real-world example is a national grocery store chain. Retailing provides wide consumer reach and direct feedback but comes with high operating costs and intense competition.
A local finance company quotes an interest rate of 17 percent on one-year loans. So, if you borrow $34,000, the interest for the year will be $5,780. Because you must repay a total of $39,780 in one year, the finance company requires you to pay $39,780/12, or $3,315.00, per month over the next 12 months.
Answer:
Company quotes an interest rate 17 percent on one-year loans.
Explanation:
Borrow value=$34000
interest rate of company in one year=17 percent
Total interest in a year =$34000×[tex]\frac{17}{100}[/tex]
total interest=$5780
Total payment in one year=$34000+$5780
Total payment=$39780
You will pay $39780/12 or $3315.00/month according to company statement.
To capitalize on high foreign interest rates using covered interest arbitrage, a U.S. investor would convert dollars to the foreign currency, invest in the foreign country, and simultaneously sell the foreign currency forward
Answer:
The statement is: True.
Explanation:
Covered Interest Arbitrage is a trading strategy which investors use to try to take advantage of the differences in interest rates in two currencies. A Forward Currency Contract is used by the Covered Interest Arbitrageur so that they know what exchange rate they will receive when converting their investment back into their original currency.
For example, the interest rate in the Eurozone might be 5% per year, while the interest rate in the U.S. is 3% per year. An American investor with $1,000 in the U.S. would earn $1,030 given a year, while in the Eurozone the investor exchanges the $1,000 which is EUR 915 and earns EUR 960 during the same year. Then, the American investor exchanges back his money into dollars resulting in $1050.
The Hartnett Corporation manufactures baseball bats with Pudge Rodriguez’s autograph stamped on them. Each bat sells for $19 and has a variable cost of $11. There are $23,000 in fixed costs involved in the production process.
The correct question is:
The Hartnett Corporation manufactures baseball bats with Pudge Rodriguez’s autograph stamped on them. Each bat sells for $19 and has a variable cost of $11. There are $23,000 in fixed costs involved in the production process.
a. Compute the break-even point in units
Answer:
2,875
Explanation:
Break-even point is the point where the cost of producing a good is equal to the gain from sale of the goods.
So sales price above the break-evem point will result in profit.
Using the formula
Break-even = Fixed cost/(Revenue from sale- Variable cost)
Break-even= 23,000/(19-11)
= 23,000/8
= 2,875 units
Franklin Company borrowed $144,000 from a bank on March 1, 2021 and agreed to pay it back in eleven months at an interest rate of 19% per year. Calculate the amount of interest expense related to this loan reported in Franklin Company's 2022 income statement.
Answer:
$25,080
Explanation:
Given:
Loan amount = $1,44,000
Starting Date 1 march 2021
Duration = 11 month
Interest Rate = 19%
Amount of interest =?
[tex]Amount of interest for a year = PRT/100\\\\Amount of interest for a year = 144,000\times19\times1/100\\Amount of interest for a year= 27,360[/tex]
Amount of interest for eleven month = Amount of interest *11/12
Amount of interest = $27,360*11/12
Amount of interest = $25,080
The forecasting time horizon that would typically be easiest to predict for would be the A. intermediate range. B. short range. C. long range. D. medium range.
Answer: B) Short range
Explanation:
Short range time horizon forecasting is prediction of the time span range till which the decisions regarding production, investments etc will work.This span is from three weeks lasting upto 1 year for making plans and accurate or actual predictions .It is used in job plan, work-force stages etc.
Other options are incorrect because long, medium or intermediate are the horizon that can't be predicted easily as compared to short range horizon for making decision based on few weeks span.Thus, the correct option is option(B).