Answer:
Q1 rises quantity of clam chowder demanded as there will be more demand from complement goods for Oyster crackers as theri price decreases it.
Q2 rises the quantity the demand for oyster crackers as more persons will find a consumer surplus at a lower price therefore, more quantity.
Q3 demand for wheat flour increases as they are an input in the processing of Oyster crackers.
Q4: increase as the demand increases without an increase in supply which,
Q5 increase input prices of bread making decreases it resulting in:
Q6: rise of the price of bread making people
Q7 subtitute with cereal thus,
Q8 increasing the demand for cerals.
Explanation:
On December 31, 2016, Avery Corporation paid $18,000 for next year's insurance policy.
This transaction should be recorded as follows by Avery:
A. Insurance expense 18,000 Insurance payable 18,000
B. Prepaid insurance 18,000 Insurance payable 18,000
C. Prepaid insurance 18,000 Cash 18,000
D. Insurance expense 18,000 Cash 18,000
Answer:
C. Prepaid insurance 18,000 debit
Cash 18,000 credit
Explanation:
The company will do a mistake if it reocrd this as a mistake as it will be posting an expense for an evnt that take place during the next accounting cycle (2017) As the insurance will be outstanding during that period not the one ending.
Also it is not an expense as the insurance company now has the obligation to perform if something happens So we have an asset right now, through time and as long as the insurance is not executed we will declare the expenses.
But for now, it is an asset.
A regression line for predicting the selling prices of homes in Chicago is y^ = 168 + 102x, where x is the square footage of the house. Interpret the residual for a house with 1800 square feet that recently sold for $200,000
Answer:
the house was sold for 16,232 more than the expected based on the regression line
Explanation:
First, we determine know that the regression line for prediction of selling prices of homes in Chicago
y^ = 168 + 102x
No we extract the information required for the question as follows
1) The house has a square feet of 1800
2) The house was recently sold for $200,000
Therefore, based on the information and the predicting regression line
y^ = 168 + 102x
= y^ = 168 + 102 (1800)
y^ = 168 + $183,600
y^ = 183,768
Since observed value for 1800 square foot is y=$200,000
Residual is = 183,768 - 200,000
=-16,232
the house was sold for 16,232 more than the expected based on the regression line
Final answer:
The residual for the house in question is $16,232, which represents the difference between the actual selling price of $200,000 and the predicted price of $183,768 based on the provided regression equation for square footage.
Explanation:
The regression equation provided is y^ = 168 + 102x, where y^ is the predicted selling price of homes and x is the square footage. To interpret the residual for a specific house, we need to compare the actual selling price with the predicted price from the model. For a house with 1800 square feet that sold for $200,000, we first calculate the predicted selling price using the regression equation:
Predicted price: y^ = 168 + 102(1800) = 168 + 183,600 = $183,768
The residual is the actual selling price minus the predicted price. Therefore:
Residual = Actual price - Predicted price = $200,000 - $183,768 = $16,232
This positive residual indicates that the house sold for $16,232 more than the predicted selling price based on its square footage.
To be liable on a negotiable instrument, a person must:
a. sign the instrument.
b. have a relative who is not an agent sign the instrument.
c. draft an arbitration clause for the instrument.
Answer:
The correct answer is letter "A": sign the instrument.
Explanation:
When talking about negotiable instruments, there are two types of liabilities: Signature Liability and Warranty Liability. Signature Liability refers to those documents where who signs is potentially liable for the responsibilities of the document stated. Warranty Liability is where the liability relies on the person to whom the document was transferred in good faith.
In both cases, the initial holder of the document must sing the instrument so it will be clear to whom belongs the liability.
"The correct option is a. sign the instrument.
To be liable on a negotiable instrument, a person must sign the instrument. This is a fundamental principle of negotiable instruments law, which is codified in various legal frameworks such as the Uniform Commercial Code (UCC) in the United States. The signature on a negotiable instrument indicates that the person has agreed to be bound by the terms of the instrument and is primarily liable for payment.
a. sign the instrument: This is correct. By signing the instrument, a person indicates their agreement to the terms and their liability on the instrument.
b. have a relative who is not an agent sign the instrument: This is incorrect. The liability does not extend to relatives unless they have signed the instrument in a capacity that makes them a party to it, such as a co-maker or endorser.
c. draft an arbitration clause for the instrument: This is incorrect. While an arbitration clause may dictate how disputes are resolved, it does not make a person liable on a negotiable instrument. Liability is established by the signature on the instrument, not by the presence of an arbitration clause.
Therefore, the requirement for liability on a negotiable instrument is the signature of the person on the instrument, making option a the correct answer."
Jupiter Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2017. The goods have a sales price of $610,000 (cost of $500,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $10,000. Past history indicates that the cash discount will be taken. On January 28, 2017, Danone makes payment to Jupiter for the full sales price.
Instructions:
(a) Prepare the journal entry(ies) to record the sale and related cost of goods sold for Jupiter Company on January 2, 2017, and the payment on January 28, 2017. Assume that Jupiter Company records the January 2, 2017, transaction using the net method.
(b) Prepare the journal entry(ies) to record the sale and related cost of goods sold for Jupiter Company on January 2, 2017, and the payment on January 28, 2017. Assume that Jupiter Company records the January 2, 2017, transaction using the gross method.
Final answer:
Journal entries for the sale and receipt of payment by Jupiter Company would differ based on whether the net method or the gross method is used. Under the net method, sales are recorded net of the discount, and payments are recorded accordingly. Under the gross method, full sales are initially recorded with discounts applied upon payment.
Explanation:
The student has asked for the journal entries related to the sale of goods by Jupiter Company to Danone Inc., specifically under different accounting methods: the net method and the gross method.
Net Method For the sales transaction on January 2, 2017, Jupiter Company would record the sale with the anticipated cash discount under the net method as follows:
Credit Notes Receivable for $610,000
These entries reflect the recognition of sales revenue and cost of goods sold on the sale date, and the recognition of the cash receipt on the payment date, under each respective method.
Walter Shewhart is listed among the important people of operations management because of his contributions to: A. assembly line production. B. measuring productivity in the service sector. C. information technology. D. just-in-time inventory methods. E. statistical quality control.
Answer:
E. statistical quality control.
Explanation:
Shewhart has contributed his great services towards Quality control through valuable research and its results, lectures and by publishing highly informative books. He also worked as a fellow member in American Statistical Association and International Statistical Institute.
Therefore, Walter Shewhart is listed among the important people of operations management because of his contributions to statistical quality control.
Research on honesty shows that individuals fall into three groups: (1) those who will almost always be honest, (2) those who are situationally honest, and (3) those who will always be dishonest. Which of these groups is (are) the biggest?
Answer:
The answer is 2) those who are situationally honest.
Explanation:
Research on honesty shows that individuals fall into three groups: (1) those who will almost always be honest, are approximately 30% of the population. (2) those who are situationally honest, are approximately 40% of the population and (3) those who will always be dishonest, are approximately 30% of the population.
A new technological breakthrough increases production for an industry and shifts the supply curve to the right. If the firm ________, then the firm will likely be happy about this new technology.
a. produces products that are considered inelastic
b. produces products because consumer will buy less
c. produces products that are considered elastic Next
Answer:
The correct answer is letter "C": produces products that are considered elastic.
Explanation:
Elasticity refers to the sensitivity of a good or service to reflect change in its supply or demand after a change in price. A product's supply is said to be elastic if the changes in the quantity supplied increases and it immediately determines a price in the price.
Thus, if for technological reasons the output of a company increases, considering that the product is elastic, the prices will increases which will provide the organization more revenue. That firm will be more than glad about the technological advance.
Final answer:
A firm will likely be happy with a technological breakthrough that increases production if it a) produces products that are considered inelastic, as this leads to a larger quantity sold without significantly reducing the price.
Explanation:
A technological breakthrough that increases production and shifts the supply curve to the right will be particularly beneficial to a firm if it produces products that are considered elastic. When the supply increases for elastic products, consumers are more responsive to the change in price, resulting in a substantially larger quantity being sold. This can greatly increase the total revenue for a firm as the technological breakthrough allows the firm to produce at a lower cost while selling more units due to the elastic nature of demand.
a. produces products that are considered inelastic.
Considering the example of the production of aspirin, if demand is highly inelastic, then a rightward shift in the supply curve from S0 to S1 leads to a lower price but not a substantial change in the quantity sold. This situation would benefit consumers in terms of price. However, if the demand is highly elastic as in the same shift in supply leads to the sale of a much greater quantity at a price very close to the original, resulting in increased consumer and producer benefits.
A delivery van costing $37,000 is expected to have a $2,900 salvage value at the end of its useful life of five years. Assume that the truck was purchased on January 1. Compute the deprecation expense for the first two calendar years under the following deprecation methods. A. Straight Line B. Double-declining- balance
Answer:
A.
Depreciation expense for the first year: $6,820
Depreciation expense for the second year: $6,820
B.
Depreciation expense for the first year: $13,640
Depreciation expense for the second year: $8,184
Explanation:
A. The company uses straight-line depreciation method, Depreciation Expense each year is calculated by following formula:
Annual Depreciation Expense = (Cost of delivery van − Salvage Value )/Useful Life = ($37,000 - $2,900)/5 = $6,820
Depreciation expense for the first year: $6,820
Depreciation expense for the second year: $6,820
B. The company uses Double-declining- balance method
Under the straight-line method, useful life is 5 years, so the asset's annual depreciation will be 20% of the Depreciable cost.
Depreciable cost = Total asset cost - salvage value = $37,000 - $2,900 = $34,100
Under the double-declining-balance method the 20% straight line rate is doubled to 40% - multiplied times the Depreciable cost's book value at the beginning of the year.
Depreciation expense for the first year = $34,100 x 40% = $13,640
At the beginning of second year, the Depreciable cost's book value is $34,100-$13,640 = $20,460
Depreciation expense for the second year = $20,460 x 40% = $8,184
The depreciation expense for the first two calendar years is $6,220 under the straight line method and $14,800 and $8,880 under the double-declining balance method.
Explanation:Under the straight-line method, the deprecation expense is calculated by dividing the difference between the initial cost and salvage value by the useful life. For the first two years, the deprecation expense would be:
Year 1: ($37,000 - $2,900)/5 = $6,220Year 2: ($37,000 - $2,900)/5 = $6,220Under the double-declining balance method, the deprecation expense is calculated by applying a fixed rate to the carrying value of the asset. The carrying value is the initial cost minus accumulated deprecation. The deprecation rates for the first two years would be:
Year 1: (2/5) x ($37,000 - $0) = $14,800Year 2: (2/5) x ($37,000 - $14,800) = $8,880Learn more about Deprecation Methods here:https://brainly.com/question/34866982
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In Russia, suppose GDP per capita grows by 9.0 % per year for 31 years . By how many times does this economy grow?
Answer:
Russian Economy will grow by 14.46 times using 9% per year growth for 31 years.
Explanation:
Growth Rate = g = 9% = 0.09
Number of years = n = 31 years
Number of time economy grow = ( 1 + growth rate )^number of years
Number of time economy grow = ( 1 + g )^n
Number of time economy grow = ( 1 + 0.09 )^31
Number of time economy grow = 14.46 times
So, Russian Economy will grow by 14.46 times using 9% per year growth for 31 years.
Final answer:
To determine how many times an economy grows with a 9% annual growth rate over 31 years, we use compound growth formula, finding it grows approximately 13.27 times larger.
Explanation:
The question asks how many times an economy grows if its GDP per capita increases by 9.0% annually for 31 years. To answer this, we use the formula for compound growth, which is Final amount = Initial amount * (1 + growth rate)^number of periods. In this case, the growth rate is 9.0% or 0.09 when expressed as a decimal, and the number of periods is 31 years.
Therefore, the calculation for how many times the economy grows is: Multiplier = (1 + 0.09)^31
Substituting the values yields: Multiplier = (1 + 0.09)^31 = (1.09)^31
Using a calculator, we find that (1.09)^31 ≈ 13.267, meaning the economy grows approximately 13.27 times larger over the 31-year period.
a. Suppose that there are equal numbers of good and bad used cars in the market and that good used cars are worth $13,000 while bad used cars are worth $5,000. What is the average value of a used car?
The average value of a used car is calculated as $9,000 when there is an equal number of good and bad used cars valued at $13,000 and $5,000 respectively, taking into account the market's asymmetric information.
When there are equal numbers of good and bad used cars in the market, and good used cars are worth $13,000 while bad used cars are worth $5,000, the average value of a used car can be calculated by taking the mean of these two values. By adding the value of a good used car and a bad used car together, $13,000 + $5,000 = $18,000, and then dividing by the number of car types, which is 2, we find that the average value of a used car is $9,000. This represents what a buyer might expect to pay on average, given the asymmetric information inherent in used car markets, often described in the economic model of used cars. The discussion of adverse selection becomes vital in understanding the discrepancy between the true qualities and the observed qualities of used cars in such markets.
What sum of money today is equivalent to $8,250 2 years from now, if annual interest rate is 4%, compounding semi-annually?
Answer:
$7,621.72
Explanation:
The equation that describes the future value (FV) of an investment (P) at an interest rate (r) for a period of n years, compounded semi-annually is:
[tex]FV = P*(1+\frac{r}{2})^{2n}[/tex]
The amount required to yield $8,250 after 2 years at a rate of 4% per year is:
[tex]8,250 = P*(1+\frac{0.04}{2})^{2*2} \\P=\$7,621.72[/tex]
The Jackson State Bank is worried because many of the loans it has made are home mortgages which can be paid off early by the homeowner. What type of risk would this be an example of?a. Default risk b. Inflation risk c. Liquidity risk d. Call risk e. Basis risk
Answer:
The correct answer is letter "D": Call risk.
Explanation:
The term call risk is usually related to bonds. It refers to the option bonds have to be redeemed before maturity. Bond issuers take advantage of call risks when interest rates drop in the market to redeem the bonds already issued to issue new bonds at a lower rate.
Data for an economy show that the unemployment rate is 6 percent, the participation rate 60 percent, and 200 million people 16 years or older are not in the labor force. How many people are employed in this economy? A. 300 million B. 30 million C. 188 million D. 282 million
Answer:
282 million
Explanation:
The unemployment rate is 6 %
the labor participation rate is 60%
200million are not in the labor force.
If 60 % is the participation rate and 200m m are not in the labor force, then 40% is not the labor force.
Therefore, 40% is equal to 200m
40% = 200m
100 % will be 200/40 X 100
=5 X 100 =500m
total population is 500 million
60% participation, is the labor force
60% of 500 million
=60/100 x 500
=300 million is the labor force.
Unemployment rate = unemployed people /labor x 100
employed people will labor force - unemployed people
= 6/100 x 300
=18million
employed people
=300 million -18 million
=282 million
A country produces apples and wheat. 1.) Using the 3-point curved line drawing tool, draw a representative PPC for this country. Label it PPC 1. 2.) Suppose that a breakthrough in technology makes all agriculture more productive. Using the 3-point curved line drawing tool, draw a new PPC showing the effect of this change. Label it PPC2. Carefully follow the instructions above, and only draw the required objects.
Answer:
The initial PPC is drawn on basis of the supposed values and is labelled as PPC1 in the attached graph. On technological marvel, the production of both the products(apples and wheat) will increase and the PPC will shift towards right as indicated in the graph labelled as PPC2.
Explanation:
1-Using the 3 point curved line tool, the representative PPC is drawn such that a the overall production is in the form of an arc touching both the axes. This is labeled as PPC in the attached graph.
2- When a breakthrough in the technology makes the agriculture productive, the curve will shift towards right. This indicates the production of both apples and wheat will increase. This is labeled as PPC2 in the attached graph.
A Production Possibility Curve (PPC) is depicted as a downward sloping concave line representing trade-offs in the production of two goods, in this case, apples and wheat. A technological breakthrough shifts this curve outward, reflecting increased production capacity.
Explanation:The subject of this question is the Production Possibility Curve (PPC), which is an economic model illustrating trade-offs and efficiency in production. In this case, we're looking at a country that produces only two goods: apples and wheat.
Normally, a Production Possibility Curve is drawn as a downward sloping, concave line, indicating the trade-off between the production of apples and wheat. The PPC is labeled as PPC 1.
When a technological breakthrough in agriculture occurs, this increases the productivity of both goods. This change shifts the PPC outward, resulting in a new curve labeled as PPC 2. This reflects the increase in production capability for both apples and wheat.
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GDP is the: a. market value of an economy's production of final goods and services in a one year period. b. sum of coins, bills, and demand deposits circulating in an economy one year period. c. total expenditures of the federal government over the period of one year. d. market value of an economy's production of all goods and services in a one year period.
Answer:
a. market value of an economy's production of final goods and services in a one year period.
Explanation:
GDP is the sum of all final goods and services produced in an economy within a given period which is usually a year.
GDP = Consumption spending + Investment spending + Government Spending + Net Export
GDP doesn't include intermediate goods. Therefore it is not the market value of an economy's production of all goods and services in a one year period.
Total expenditures of the federal government over the period of one year is known as government spending.
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Old Economy Traders opened an account to buy 1,000 shares of Internet Dreams at $40 per share. The initial margin requirement was 50%, and interest on margin loan is 8%. A year later, the price of Internet Dreams has risen from $40 to $50, what is Old Economy Traders' return on equity?
Answer
6000 (representing a decrease in the OET account)
Explanation:
The initial margin was $40 x 1000 x 0.50 = $20,000
As a result of the $10 increase in the stock price, the Old Economy Trader loses $10 x 1000 shares = $10,000
Now, considering the fact that an interest margin of %8 was paid on the load, we therefore arrive at:
$4 (representing %8 of $50) x 1000 = $4000
Old Economy Trader return on equity will now therefore be:
20000 - 10000 - 4000
= 6000 (representing a decrease in the OET account.)
For further clarity, we try break it down further
To sell the shares, the OET had to pay 50% of their market value and
thus the value of total assets in OET’s account is initially $40, 000 + $20, 000 = $60, 000. At the time of the sale, total liabilities are $40,000 and thus OET’s margin is initially $60, 000 − $40, 000 = $20, 000.
A number of activities that are a part of a company's quality control system are listed below:
a. Product testing.
b. Product recalls.
c. Rework labor and overhead.
d. Quality circles.
e. Downtime caused by defects.
f. Cost of field servicing.
g. Inspection of goods.
h. Quality engineering.
i. Warranty repairs.
j. Statistical process control.
k. Net cost of scrap.
I. Depreciation of test equipment.
m. Returns and allowances arising from poor quality.
n. Disposal of defective products.
o. Technical support to suppliers.
p. Systems development.
q. Warranty replacements.
r. Field testing at customer site.
s. Product design.
Required:
1. Classify the costs associated with each of these activities into one of the following categories: prevention cost, appraisal cost, internal failure cost, or external failure cost.
2. Which of the four types of costs in (1) above are incurred in an effort to keep poor quality of conformance from occurring? Which of the four types or costs in (1) above are incurred because poor quality of conformance has occurred?
Answer:
Explanation:
A. Product testing - Appraisal cost
B. Product recalls - External Failure cost
C. Rework labor and overhead - Internal Failure cost
D. Quality circles - Prevention cost
E. Downtime caused by defects - Internal Failure cost
F. Cost of field servicing - External Failure cost
G. Inspection of goods - Appraisal cost
H. Quality engineering - Prevention cost
I. Warranty repairs - External Failure cost
J. Statistical process control -Prevention cost
K. Net cost of scrap - Internal Failure cost
L. Depreciation of test equipment - Appraisal cost
M. Returns and allowances arising from poor quality - External Failure cost
N. Disposal of defective products - Internal Failure cost
O. Technical support to suppliers - Prevention cost
P. Systems development - Prevention cost
Q. Warranty replacements - Internal Failure cost
R. Field testing at customer site - Appraisal cost
S. Product design - Prevention cost
2. Which of the four types of costs in (1) above are incurred in an effort to keep poor quality of conformance from occurring? Prevention costs and appraisal costs.
Which of the four types or costs in (1) above are incurred because poor quality of conformance has occurred? Internal failure costs and external failure costs
The costs associated with each activity can be classified into prevention cost, appraisal cost, internal failure cost, or external failure cost. Prevention costs are incurred to keep poor quality of conformance from occurring, while internal failure costs occur because poor quality of conformance has occurred within the organization.
Explanation:The costs associated with each activity can be classified as follows:
Prevention cost: Product design, Quality circles, Quality engineering, Statistical process control, Systems developmentAppraisal cost: Inspection of goods, Depreciation of test equipmentInternal failure cost: Rework labor and overhead, Downtime caused by defects, Cost of field servicing, Net cost of scrap, Depreciation of test equipment, Returns and allowances arising from poor quality, Disposal of defective products, Technical support to suppliers, Systems developmentExternal failure cost: Product recalls, Warranty repairs, Warranty replacements, Field testing at customer sitePrevention costs are incurred to keep poor quality of conformance from occurring, while appraisal costs are incurred to assess the conformance of products. Internal failure costs occur because poor quality of conformance has occurred within the organization, while external failure costs occur because poor quality of conformance has occurred outside of the organization.
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did the state's denial of unemployment benfitis to Thomas violate the free exercise clause of the first amendement? explain
Answer:
NO
Explanation:
The Supreme Court of the United States were of the opinion that beliefs and practices of religious bodies need not be acceptable, rational, or extensive to other people for the protection from the First Amendment to cover them in terms of free exercise of religion. Whether they were right or wrong, the religious conviction of Thomas were open and honest and the conclusion of the Court to transfer him to a place where he was included in weapon manufacture, effectively placed Thomas in a situation where he had to pick one between his religion and his job. The fact that Thomas departed his company was due to the employers decision and thus he inherently deserves unemployment compensation.
Moore General Store purchased office supplies on account during the month of February for $4,500. Payment for the supplies will be made in March. On February 1, the balance in the supplies account was $200. On February 28, supplies on hand amounted to $180. What was the amount of supplies USED during February?
Select one:
a. $ 4880
b. $ 4520
c. $ 4320
d. $ 180
Answer:
The correct answer is option (B).
Explanation:
According to the scenario, the given data are as follows:
Purchased office supplies = $4,500
Supplies on balance account (in beginning) = $200
Supplies remaining (in end of month) = $180
So, To calculate supplies used in February we use following method:
Supplies Used = Supplies in Beginning + Purchased office supplies - Supplies in Ending
= $200 + $4,500 - $180
Supplies Used = $4,520
Hence, the amount of supplies USED during February was $4,520.
Britney, Jewel, Colin, and Sheila are trying to form a band. They each have some basic skills on most instruments, so their current plan is for each of them to rotate among vocals, guitar, bass, and drums. After a year of practice and rehearsals the band still sounds awful. Britney cannot keep a steady beat when on bass or drums, Colin sounds terrible on everything except the bass, nobody except Jewel can remember all the chords on guitar, and even Sheila's own mother thinks her singing sounds like a dying cow. At their current rate, they expect it will be several years before they are good enough to land their first paid performance. None of them have enough money saved up to last that long.
Answer:
Tell each member to begin training in the roles they play better to gain from expertise benefits.
Explanation:
It's very clear that they are awful in the other parts. Colin should take the bass and jewel should take the guitar. Britney should sing and Sheila should play the drums. In this way they will all be focused on what they succeed at and practice till it makes perfect to save time before their cash runs out. Perhaps during the free time they might try their hands on other instruments they fancy.
Final answer:
The difficulties faced by a band in coordinating musical activities, the significance of shared identity and aspirations in the music community, and the importance of constructive criticism in the music industry.
Explanation:
Group musical activities or coordinated instrumental play can be challenging when individuals have difficulty performing on certain instruments or with specific skills. In this case, the band members face obstacles such as Britney's inability to keep a steady beat, Colin's struggle on most instruments except the bass, and so forth, leading to a lack of progress in their musical journey.
Shared identity within the music community can influence perceptions of success and opportunities, as seen in the band's aspirations for free college education to support their passion for music. This illustrates a connection between artistic pursuits and practical considerations such as education and career options.
Constructive criticism is essential in the music industry, as seen in contexts like American Idol where contestants' self-perceptions may clash with feedback from judges, highlighting the importance of self-awareness and growth in pursuing musical endeavors.
A bank estimates that its profit next year is normally distributed with a mean of 0.8% of assets and the standard deviation of 2% of assets. How much equity (as a percentage of assets) does the company need to be (a) 99% sure that it will have a positive equity at the end of the year and (b) 99.9% sure that it will have positive equity at the end of the year
Answer:
a) 5.45%
b) 6.98%
Explanation:
We are given the following information in the question:
Mean, μ = 0.8%
Standard Deviation, σ = 2%
We are given that the distribution of profit is a bell shaped distribution that is a normal distribution.
Formula:
[tex]z_{score} = \displaystyle\frac{x-\mu}{\sigma}[/tex]
a) We have to find the value of x such that the probability is 0.99
P(X < x)
[tex]P( X < x) = P( z < \displaystyle\frac{x - 0.8}{2})=0.99[/tex]
Calculation the value from standard normal z table, we have,
[tex]P(z < 2.326) = 0.99[/tex]
[tex]\displaystyle\frac{x - 0.8}{2} = 2.326\\\\x = 5.452 \approx 5.45[/tex]
Thus, 5.45% of assets does the company need to be 99% sure that it will have a positive equity at the end of the year.
b) We have to find the value of x such that the probability is 0.999
P(X < x)
[tex]P( X < x) = P( z < \displaystyle\frac{x - 0.8}{2})=0.999[/tex]
Calculation the value from standard normal z table, we have,
[tex]P(z < 3.090) = 0.999[/tex]
[tex]\displaystyle\frac{x - 0.8}{2} = 3.090\\\\x = 6.98[/tex]
Thus, 6.98% of assets does the company need to be 99% sure that it will have a positive equity at the end of the year.
Inicell Inc., an American camera manufacturing company, wanted to import a few camera parts from Ruelia, an Asian company. However, the American government passed a taxation law that stated that a tax of 4% would be levied on all electronic imports.
In this scenario, the American government imposed:
A. voluntary export restraint
B. tariff
C. quota
D. embargo
Answer:
B. tariff
Explanation:
A tariff is a form of tax imposed on imported goods by a country .
Quotas place a limit on the quantity of goods that can be imported.
Embargo prohibits the sale of certain goods.
Voluntary export restraint is when an exporting country limits the amount of goods it exports.
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The size of the change in the quantity demanded of a good or service due to change in its price is measured by the elasticity of demand. When the percentage change in the quantity demanded for a good or service is more than the percentage change in price, the demand for that good or service is ________ and price elasticity is ________.
Answer:
Elastic ; greater than 1
Explanation:
We know that
Price elasticity of demand = (Percentage change in quantity demanded) ÷ (Percentage change in price) × 100
Since in the question it is given that the percentage change in quantity demanded is more than the percentage change in price that reflects that the price elasticity is elastic that means it is greater than one.
Dimitrov Corporation, a company that produces and sells a single product, has provided its contribution format income statement for July.
Sales (6,800 units) $401,200
Variable expenses 265,200
Contribution margin 136,000
Fixed expenses 103,500
Net operating income $32,500
If the company sells 6,700 units, its net operating income should be closest to:
a. $31,979
b. $32,500
c. $28,000
d. $30,500
Answer:
Option (d) is correct.
Explanation:
Contribution margin per unit:
= Contribution margin ÷ No. of units sold
= 136,000 ÷ 6,800
= $20 per unit
If the company sells 6,700 units, then
Net operating income:
= Contribution margin - Fixed expenses
= (6,700 units × $20 per unit) - $103,500
= $134,000 - $103,500
= $30,500
Therefore, the net operating income of this company is closest to $30,500.
_____ is a type of merger in which acquiring and acquired companies have related production and/or distribution activities but do not have products that compete directly with each other.
Answer: The answer is vertical merger
Explanation:
Merger is the coming together of two or more companies to form one new enterprises. The procedure involves the adoption of a resolution by the board of directors of the two companies in merger approving the merger. The merger comes into effect when the registrar of companies issue a certificate of merger to the company. When the merger comes into effect the firms becomes a single entity,and the other companies stop to exist. The new company will now take over the assets and the liabilities of the merged firms.
A vertical merger is a merger of a business that have related production and distribution activities but who may not compete directly with each othe. The aim of this kind of merger is to ensure that the quality of the product that they produced increased to the highest quality after the merger.It is also to ensure that the company can have a better access to vital information regarding the market at all times.. It is also to improve efficiency of their operations and to raise enough capital in order to take advantage of economies of scale.
Final answer:
A vertical merger involves companies in related production and/or distribution activities without directly competing products, intending to enhance operations and supply chain control.
Explanation:
A vertical merger is a type of merger in which acquiring and acquired companies have related production and/or distribution activities but do not have products that compete directly with each other. In this strategic business move, companies at different stages of production or distribution within the same industry come together to streamline operations, reduce costs, and ensure a smoother flow of supplies. This contrasts with a horizontal merger, where companies that offer similar products or services and compete in the same market space merge.
Vertical mergers help companies gain better control over their supply chains, reduce risks related to the availability of raw materials, and improve profit margins by capturing more stages of the production and distribution process. For instance, a car manufacturer acquiring a tire company would be considered a vertical merger, as this would help secure a steady supply of an essential component without changing the competitive landscape.
When GM introduced the Chevy Nova in South America, it was perplexed to find that, despite its best efforts, it wasn't selling many cars. GM finally realized that "nova" in Spanish means "it won't go." This is an example of a(n) _______ force that adversely affected GM in its globalization effort
Answer:
The correct word for the blank space is: Sociocultural.
Explanation:
Sociocultural forces refer to all cultural features a society possesses such as language, values, and customs. In business, sociocultural features can be an opportunity or a threat firms must identify while promoting or introducing a product into a foreign market. Companies must make sure that the introduction of those goods or services is as smooth as possible for the association to achieve its goals.
Which of the following statements is FALSE?a. Electronic procurement systems can aid a company in saving both time and money.b. More than 50% of each sales dollar typically goes towards covering supply chain costs.c. If a firm lacks the technology to make a required component they will need to consider buying/outsourcing.d. Centralized purchasing is where individual, local purchasing departments, such as at the plant level, make their own purchasing decisions.
Answer:
The answer is d. Centralized purchasing is where individual, local purchasing departments, such as at the plant level, make their own purchasing decisions.
Explanation:
Centralized purchasing is a purchasing system in which all the departments of a company with a wide geographical distribution can make purchases through a common purchasing organization.
The false statement is that centralized purchasing refers to individual, local purchasing departments making their own decisions. In fact, centralized purchasing means the decisions are made by a single, centralized department.
Explanation:The false statement among the options is: 'Centralized purchasing is where individual, local purchasing departments, such as at the plant level, make their own purchasing decisions.' This is incorrect. Centralized purchasing refers to all purchasing decisions and activities being carried out by a single, centralized department within an organization rather than on an individual or local level. For example, in a multinational corporation, the headquarters would make purchasing decisions that affect all branches, ensuring standardized processes and potential volume discounts.
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Suppose a new process was developed that could be used to make oil out of seawater. The equipment required is quite expensive, but it would in time lead to low prices for gasoline, electricity, and other types of energy. What effect would this have on interest rates? Why?
Answer:
Interest rates will rise
Explanation:
The reason is that the new process will lead to an appreciable rise in productivity in the energy sector. This rise in productivity positively affect the the rate of return on the investments of producers which indicates an increase in income. As people have more money to spend due to increase in income, demand will therefore rise. Increase in income would make the amount of savings and investment rise in the economy. The rise in investment will eventually lead to a rise all interest rates.
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On January 1, 2011, Baird Company had beginning balances as follows: Assets = $1,475 Liabilities = $560 Common Stock = $510 During 2011, Baird paid dividends to its stockholders of $500. Given that ending retained earnings was $740, what was Baird's net income for the 2011 accounting period?
Answer:
$835
Explanation:
Given that,
Assets = $1,475
Liabilities = $560
Common Stock = $510
Dividends paid to stockholders = $500
Ending retained earnings = $740
Beginning retained earnings:
= Assets - Liabilities - Common Stock
= $1,475 - $560 - $510
= $405
Net income:
= Dividends paid to stockholders + Ending retained earnings - Beginning retained earnings
= $500 + $740 - $405
= $835
Sanford Co. sells $500,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 12%. Give entries through December 31, 2021. Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to 0 decimal places, e.g. 38,548.)
To prepare a bond amortization schedule using the effective-interest method, you need to calculate various components such as interest expense, interest payment, carrying amount, discount or premium amortization, and book value.
Explanation:To prepare a bond amortization schedule using the effective-interest method for discount and premium amortization, you need to calculate the bond's interest expense, interest payment, bond carrying amount, discount or premium amortization, and the bond's book value. Here is a step-by-step guide:
Calculate the bond's interest expense: Interest expense = Carrying amount × Effective interest rateCalculate the bond's interest payment: Interest payment = Face value × Coupon rateCalculate the bond's carrying amount: Carrying amount = Face value + Premium or - DiscountCalculate the bond's discount or premium amortization: Discount or premium amortization = Interest payment - Interest expenseCalculate the bond's book value: Book value = Carrying amount + Discount or - PremiumRepeat steps 1 to 5 for each interest payment date and year-endUsing these calculations, you can create a bond amortization schedule to track the changes in the bond's carrying amount, interest expense, discount or premium, and book value over time.
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The detailed answer provides entries for a bond amortization schedule using the effective-interest method for discount and premium amortization.
Bond Amortization Schedule using Effective-Interest Method:
MAR 1, 2020: Cash 500,000; Discount on Bonds Payable 50,000; Bonds Payable 500,000
SEPT 1, 2020: Interest Expense 28,500; Discount on Bonds Payable 1,500; Cash 30,000
DEC 31, 2020: Interest Expense 27,120; Discount on Bonds Payable 880; Bonds Payable 28,000