Answer:
The correct answer is letter "B": Employee satisfaction.
Explanation:
Employee satisfaction refers to the level of joy workers have at work with the current activities they perform. Companies tend to provide additional benefits to employees to increase their engagement with the firm which is believed to boost their efficiency, thus, the company's effectiveness.
10. Inflation and unemployment Suppose that the government believes the economy is not producing goods and services at its optimal level. In an attempt to stimulate the economy, the government increases the quantity of money in the economy by printing more money.
Answer: Increase in money in circulation will increase Demand and Inflation will go up which will eventually lead to lower levels of unemployment in the short term.
Explanation: Governments through out the world Implements certain policies which may be a short term or long term policy to control or regulate the Economy. Most of the policy is to ensure that the Economy runs in an equilibrium,which means Demand will be similar to supply etc.
When the volume of money is Increased,it will lead to increase Demand for goods and services which will cause inflation to rise and unemployment rate will reduce.
"For Adams Company, the predetermined overhead rate is 70% of direct labor cost. During the month, $54,000 of factory labor costs are incurred, of which $16,000 is indirect labor. Actual overhead incurred was $30,900. What amount of overhead should be debited to the Work in Process Inventory account?"
Answer:
Overhead of $26,600 should be debited to the Work in Process Inventory account.
Explanation:
Predetermined overhead rate = 70% of direct labor cost
Direct labor cost = Total factory labor cost - Indirect labor cost
Direct labor cost = $54,000 - $16,000 = $38,000
Overhead cost allocated to work in process = $38,000 x 70%
Overhead cost allocated to work in process = $26,600
Overhead of $26,600 should be debited to the Work in Process Inventory account.
Organizational obligations are the same as personal ethical obligations Group of answer choices True False
Answer:FALSE
Explanation:Organisational obligations are not the same as personal ethical obligations in many ways.
Organisational obligations are obligations which concerns different class and set of persons working together in an organization towards achieving the goals of the organization,organisational obligations are a collection of different personal Ethical obligations which are brought together to achieve the goals of an organization.
Personal ethical obligations are sets of principles, guidelines or norms that guides a person's conduct, it happens on the personal or individual level.
Indicate whether each of the following is identified with (1) an asset, (2) a liability, or (3) stockholders' equity: a. Accounts payable b. Accounts receivable c. Fees earned d. Supplies e. Supplies expense f. Utilities expense
Answer and explanation:
An asset is a resource with economic value. Assets can be tangible, such as equipment and land or intangible including things like a brand, a chemical formula or property rights.
Liabilities are all those responsibilities firms incur as a result of the operations of the business. Liabilities include notes, accounts, salaries, and interest payable.
Stockholders' Equity represents the equity stakeholders own of a company. They could be common stock, preferred stock, retained earnings or expenses incurred during the period. Thus:
A) Accounts payable (Liability)
B) Accounts receivable (Asset)
C) Fees earned (Stockholder's equity)
D) Supplies (Assets)
E) Supplies expense (Stockholder's equity)
F) Utilities expense (Stockholder's equity)
a. Accounts payable is a liability,
b. accounts receivable and supplies are assets,
c. fees earned is associated with stockholders' equity,
d. supplies are assets,
e. both supplies expense and f. utilities expense are operating expenses that indirectly affect equity.
Explanation:In the context of business and accounting:
Accounts payable is a liability. It represents the money a company owes to someone else or its creditors. For example, when a company purchases supplies from a vendor on credit, it creates an account payable.Accounts receivable is an asset. It represents the money owed to a company by its customers who have bought goods or services on credit. For instance, if a company sells a product to a customer on credit, it creates an account receivable.Fees earned is associated with stockholders' equity. It is revenue that increases the equity, assuming that no liabilities have been created in the process of earning these fees.Supplies are considered as an asset, as they represent items that can be used for producing goods or services in the future.Supplies expense and Utilities expense are neither assets, liabilities, nor directly related to stockholders' equity. They are operating expenses that are deducted from revenues in the calculation of net income, which indirectly affects stockholders' equity by reducing it.Learn more about Business Accounting here:https://brainly.com/question/36268454
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Gammil company has beginning and ending raw materials inventories of $96,000 and $120,000, respectively. If direct materials used were $390,000, what was the cost of raw materials purchased? A. $366,000 B. $414,000 C. $390,000 D. $420,000
Answer:
The cost of raw materials purchased was B. $414,000
Explanation:
The cost of raw materials purchased is calculated by using following formula:
The cost of raw materials purchased = Ending raw materials inventories + Direct materials used - Beginning raw materials inventories
Gammil company has beginning and ending raw materials inventories of $96,000 and $120,000, respectively. Direct materials used were $390,000.
The cost of raw materials purchased = $120,000 + $390,000 - $96,000 = $414,000
In 2019, Alliant Corporation acquired Centerpoint Inc. for $352 million, of which $62 million was allocated to goodwill. At the end of 2021, management has provided the following information for a required goodwill impairment test Fair value of Centerpoint Inc Book value of Centerpoint's net assets (excluding goodwill) Book value of Centerpoint's net assets $256 million 228 million (including goodwill) 290 million Required: 1. Determine the amount of the impairment loss. (Negative amount should be indicated by a minus sign. Enter your answer in millions (i.e., 10,000,000 should be entered as 10)). 2. Determine the amount of the impairment loss assuming that the fair value of Centerpoint is $318 million. (Enter your answer in millions (i.e., 10,000,000 should be entered as 10)) million million 1 Impairment loss 2 Impairment loss
Answer:
1. $34 million
2. $0
Explanation:
Given that,
Fair value of Centerpoint Inc = $256 million
Book value of Centerpoint's net assets (excluding goodwill) = $228 million
Book value of Centerpoint's net assets (including goodwill) = 290 million
1. Actual Value of Goodwill:
= Fair Value of Centrepoint Inc. - Book Value of Net assets (excluding goodwill)
= $256 million - 228 million
= $28 million
Loss on Impairment of Goodwill:
= Goodwill recorded - Actual value of goodwill
= $62 million - $28 million
= $34 million
2. In this case Fair value of ($318 million) is more than Book value ($290 million) then there will be no Impairment Loss.
It means that the loss on Impairment of Goodwill = $0.
Final answer:
In this response, we calculate the impairment loss for the acquisition scenario provided, showcasing the impact on goodwill value based on different fair value assessments.
Explanation:
Goodwill Impairment Calculation:
Impairment Loss Calculation: $290 million (book value of net assets) - $256 million (fair value) = $34 millionImpairment Loss Calculation with $318 million fair value: $290 million - $318 million = -$28 millionThe impairment loss is the reduction in the value of goodwill when the fair value of an acquired company is less than the carrying amount of its net assets, including goodwill.
Zola borrows $1000. To repay the amount, she makes 12 equal monthly payments of $95. Compounding is done monthly. Determine nominal interest rate. Hint use the excel formula RATE to find the monthly effective interest rate. Then convert that to the nominal rate. Remember nominal interest does not account for sub-period compounding. (EX: effect monthly interest is 3%, the nominal rate is 3*12 = 36%)
Answer:
Effective monthly rate 2.076%
Yearly nominal rate: 24,912%
Explanation:
In excel we have to specify the number of period. The amount we borrow and the payment we are doing This should be negative as represent a cash outflow.
This is solving for the rate of the annuity for 95 of 12 months that discounted at X rate gives 1,000 as the present value:
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
[tex]95 \times \frac{1-(1+r)^{-10} }{rate} = 1000\\[/tex]
we write on A1
=RATE(12;1000;-95)
and we will receive 2.076% as answer
Now to convert into nominal:
2.076 x 12 = 24,912%
The nominal interest rate can be calculated with the RATE formula in Excel to determine the monthly effective interest rate. We then convert this to the nominal annual interest rate by simple multiplication. If, for example, the effective monthly interest rate is 3%, the nominal annual interest rate would be 36%.
Explanation:To calculate the nominal interest rate, we first need find the monthly effective interest rate using the Excel RATE function. Given the 12 equal payments of $95, for a loan of $1000, we can use the formula RATE(12,-95,1000,0). The negative sign is used because it is a cash outflow, a payment. The result is the monthly effective interest rate.
After getting the monthly effective rate, we will then need to convert the effective monthly interest rate to annual nominal interest rate. We do this through simple multiplication. This is provided we are assuming simple interest. For example, if the effective monthly interest rate is 3%, then the nominal annual interest rate is 3% x 12 = 36%.
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You expect to receive $3,100 upon your graduation and will invest your windfall at an interest rate of .43 percent per quarter until the account is worth $4,750. How many years do you have to wait until you reach your target account value?
(A) 25.02 years
(B) 26.78 years
(C) 21.76 years
(D) 24.86 years
(E) 23.21 years
This is a financial mathematics problem involving the concept of compounding interest. Using the appropriate formula and provided values, we find that the correct answer for the time it would take to reach a target account value of $4,750 with a starting value of $3,100 and an interest rate of 0.43% per quarter is approximately 26.78 years.
Explanation:The problem presented is a common problem in financial mathematics and relates to the concept of compounding interest. To solve this problem, we need to use the compounding interest formula. Here is how it looks: A = P * (1 + r/n)^(nt). In your case:
P = $3,100 (the amount of money you initially invest). A =$4,750 (the amount of money you want to have in the end). r = 0.43% per quarter (the interest rate). n = 4 (how many times the interest is compounded per year). t = ? (the time the money is invested for).
Solving for t, we arrive at t = 26.78 years, so your answer would be (B) 26.78 years.
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Planning enables organizations to set goals and to formulate operational plans to achieve those goals. This activity is important because, as a manager, you will spend a great deal of time planning.
The goal of this exercise is to challenge your knowledge of the various types of standing plans and single-use plans.
A ____________ encompasses a wide range of activities or projects.
A ____________ designates a specific required action.
A ____________ outlines a set responses to particular circumstances.
A ____________ plan is used for activities that are not likely to be repeated again.
A ____________ has less complexity and scope than a program
A ____________ plan is best for activities that occur over and over again.
A ____________ gives a general idea of how to respond to a designated situation.
The choices are: layout, framework, schedule, mission, program, rule, standing, single-use, policy, project, scheme, procedure
Answer:
Explanation:
Program encompasses a wide range of activities or projects.
A rule designates a specific required action.
A procedures outlines a set responses to particular circumstances.
A single-use plan is used for activities that are not likely to be repeated again.
A project has less complexity and scope than a program
A standing plan is best for activities that occur over and over again.
A policy gives a general idea of how to respond to a designated situation.
Organizational planning involves different types of plans. A program involves many activities or projects and a project is smaller than a program. Rules give specific required actions, procedures provide responses to specific situations, standing plans are for recurring activities, policies are general responses to situations, and single-use plans are for non-recurring activities.
In the context of organizational planning, a program encompasses a wide range of activities or projects. A rule designates a specific required action, ensuring all employees are guided by the same principles. A procedure outlines a set responses to particular circumstances providing a standard way to respond to recurring situations. A single-use plan is used for activities that are not likely to be repeated again. A project has less complexity and scope than a program and is designed to accomplish a specific goal. A standing plan is best for activities that occur over and over again in the organization. Lastly, a policy gives a general idea of how to respond to a designated situation, functioning as a guideline for decision making.Learn more about Organizational Planning here:
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Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $43,500. The machine's useful life is estimated at 10 years, or 385,000 units of product, with a $5,000 salvage value. During its second year, the machine produces 32,500 units of product.
Determine the machine's second-year depreciation under the straight-line method.
The machine's second-year depreciation under the straight-line method. is $3,850.
Straight-Line DepreciationAnnual Depreciation Expense = Cost minus - salvage/ Estimated useful life (years)
Annual Depreciation Expense = $43,500 - $5,000 / (10 years)
Annual Depreciation Expense = $38,500/10
Annual Depreciation Expense = $3,850
This, the Year 2 Depreciation is $3,850 and the Year end book value (Year 2) is $35,800.
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To calculate the second-year depreciation of the manufacturing machine using the straight-line method, subtract the salvage value from the cost of the machine, and divide by the useful life. The second-year depreciation would be $3,850.
Explanation:The student is asking about calculating depreciation for a manufacturing machine using the straight-line method. To determine the second-year depreciation, we subtract the salvage value from the cost of the machine, and divide that by the machine's useful life in years. The initial cost of the machine is $43,500, the salvage value is $5,000, and the machine's useful life is estimated to be 10 years. Therefore, the annual depreciation is ($43,500 - $5,000) / 10 = $3,850. This is the machine's second-year depreciation under the straight-line method, which implies that the depreciation expense is the same for each year of the asset's useful life.
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There are arguments for and against the alternative exchange rate regimes. a) List the advantages of the flexible exchange rate regime. b) Criticize the flexible exchange rate regime from the viewpoint of the proponents of the fixed exchange rate regime. c) Rebut the above criticism from the viewpoint of the proponents of the flexible exchange rate regime.
Answer:
a. The advantages of the flexible exchange rate system include: (I) provides insulation against unemployment problem in other countries and (ii) promotes economic development and helps to achieve full employment in the country, iii) automatically corrects the disequilibrium in the balance of payments.
b. If exchange rates are fluctuating randomly, that may discourage international trade and encourage market segmentation, they are very volatile
c. Economic agents can hedge exchange risk by means of forward contracts and other techniques. In addition, under a fixed exchange rate regime, governments often restrict international trade in order to maintain the exchange rate.
Explanation:
A comparable property sold one month ago for $400,000. That property has a three-car garage, whereas the subject property you’re preparing to list only has a two-car garage.
What should you do to determine the subject property’s market value?
Final answer:
To estimate the market value of a property with a two-car garage, use a comparative market analysis (CMA) and adjust the sale price of a comparable property with a three-car garage by subtracting the value difference caused by the additional garage space.
Explanation:
To determine the market value of the subject property, you should look for comparable property sales with similar characteristics to the subject property and make adjustments for differences such as the size of the garage. This method is known as the comparative market analysis (CMA). In the case of the property with the three-car garage selling for $400,000, you would subtract the value a three-car garage adds over a two-car garage from the $400,000 to estimate the subject property's value. To accurately assess this value, you should also consider other factors like location, property condition, and market trends. It's also beneficial to look at a range of comparable sales to ensure that your estimate is robust and reflective of the current market.
Barnes Company reports the following operating results for the month of August: sales $300,000 (units 5,000); variable costs $222,000; and fixed costs $71,900. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative.
1. Increase selling price by 10% with no change in total variable costs or sales volume. What's the Net income?
2. Reduce variable costs to 60% of sales. Whats the Net income?
3. Reduce fixed costs by $19,000. Whats's the Net income?
Which course of action will produce the highest net income?
Answer:
Option 2 ( Net Income 48100)
Explanation:
The current Net income is,
Sales - Variable Cost - Fixed Cost = Net Income
300000 - 222000 - 71900 = 6100While the Selling Price is 300000 / 5000 = 60 / unit1. If option one is implemented,
New Selling Price = 60 * 1.1 = 66 / UnitSales Revenue = 66 * 5000 = 330000Net Income = 330000 - 222000 - 71900 = 361002. New Variable Cost = 60 % of Sales = 300000 * 0.6 = 180000
Net Income = 300000 - 180000 - 71900 = 481003. New Fixed Cost will be = 71900 - 19000 = 52900
Net Income = 300000 - 52900 - 222000 = 25100Final answer:
To find the highest net income for Barnes Company, the computations show that reducing variable costs to 60% of sales will result in the highest net income of $48,100.
Explanation:
To calculate the net income under each alternative for the Barnes Company, we will first identify the current net income and then apply each change proposed by management.
Current net income is computed as follows:
Sales ($300,000) - Variable Costs ($222,000) - Fixed Costs ($71,900) = Net Income ($6,100).
The course of action to reduce variable costs to 60% of sales will produce the highest net income of $48,100.
On December 31, 2021, Interlink Communications issued 6% stated rate bonds with a face amount of $100 million. The bonds mature on December 31, 2051. Interest is payable annually on each December 31, beginning in 2022. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the table values provided.)
Determine the price of the bonds on December 31, 2021, assuming that the market rate of interest for similar bonds was 7%. (Round your final answers to the nearest whole dollar amount.)
Table values are based on:
n =?
i =?
Cash Flow Amount Present value
Interest
Principle
Price of bonds
Final answer:
The price of Interlink Communications bonds is calculated by discounting the annual interest payments and the $100 million principal to their present value using a 7% market rate. Financial formulas and tables are applied to determine this value, which is the sum of all discounted future cash flows.
Explanation:
Calculation of Bond Price
To determine the price of the Interlink Communications bonds issued on December 31, 2021, we need to calculate the present value of the interest payments and the principal payment, discounted at the market rate of interest, which is 7%. The bonds have a face value of $100 million and a stated rate of 6%, with interest payable annually on December 31, starting in 2022, and maturing on December 31, 2051.
The annual interest payment is 6% of $100 million, which is $6 million. Each of these payments, as well as the principal payment of $100 million at maturity, must be discounted to their present value.
Using present value formulas, we can find:
Present Value of Annuity (PVA) for interest payments
Present Value (PV) of a single sum for the face value repayment
The bond's price will be the sum of these two present values. To calculate the present value of an annuity of $6 million for 30 years at a discount rate of 7%, and the present value of $100 million to be received after 30 years at the same rate, we apply formulas and use values from the provided table values.
Once we have the present values, we sum them to find the bond price on December 31, 2021. These calculations would be performed using financial tables or a financial calculator to obtain the nearest whole dollar amount.
Here is a simplified example with a two-year bond to illustrate the concept:
A bond issued for $3,000 at an interest rate of 8% would pay $240 annually in interest. To find its present value at a discount rate of 8%, we discount the two interest payments and the principal repayment. If the discount rate rises to 11%, we apply the higher rate to find a lower present value, reflecting the higher market interest rates.
By how many packs of cigarettes does quantity demanded decrease due to the excise tax on cigarettes?
The quantity demanded of cigarettes decreases due to the excise tax imposed on them.
The extent of this reduction varies depending on the specific tax rate and other market factors. Generally, higher excise taxes lead to greater decreases in demand.
As the tax increases the price of cigarettes, consumers are inclined to cut back on their purchases or seek alternatives. This reduction in demand may lead to a decline in cigarette sales and, in some cases, an increase in illegal trade.
Policymakers must strike a balance between public health objectives and potential revenue implications when determining appropriate tax levels on cigarettes.
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Final answer:
The quantity of cigarettes demanded decreases with an excise tax, especially if the demand is elastic. This effect is greater in youth smoking. Taxes aim to raise revenue and reduce consumption, with their effectiveness depending on the elasticity of demand.
Explanation:
The quantity of cigarettes demanded decreases due to an excise tax as a consequence of the demand's elasticity. If cigarette demand is elastic, the quantity of cigarettes smoked reduces substantially with an increase in taxes. This effect is particularly notable among youth smoking, which is more elastic than adult smoking, meaning the quantity of youth smoking will fall by a greater percentage in response to a given percentage increase in price. Taxes on cigarettes aim to raise tax revenue for the government and discourage cigarette consumption. The effectiveness of these taxes, however, depends on how much they actually reduce cigarette consumption. When the cigarette tax is high enough, even if it reduces the quantity sold, it can still raise significant revenue if the reduced consumption is not too drastic.
The brave new world of artificial intelligence (AI) is beginning to appear in applications for delivering human resource management services. Imagine how Amazon's Alexa for Business device might be used to provide the "human" touch to employees. Alexa has mastered thousands of skills and continues to get smarter every day. Amazon is hoping that companies might put Alexa to work for tasks like booking hotel rooms, scheduling and administering virtual meetings, and doing other duties that can be programmed into an algorithm. IBM is producing a chatbot that is designed to replicate a human voice. The chatbot can be used during employment recruiting, during onboarding and training of employees, and for answering questions in an employee service center. These intelligent assistants may be the next revolution in workplace technology.
These AI/chatbots are becoming more popular due to changing consumer and employee preferences. Millennials and individuals in Generation Z have little patience when making a request; they typically expect a response within 10 minutes. It can be difficult for human workers to respond that quickly with accurate and timely information. AI devices can scour countless company documents and other sources of information to rapidly compile all of the facts needed to response to an inquiry. IBM's Watson computer can quickly identify important information and connect it together to deliver to the person asking the question. Workers who are accustomed to getting this speedy service in their personal lives will soon expect their company's HR department to be just as efficient. So, HR professionals of the future may need to start learning about how this technology can help them serve employees better.
Talent acquisition and onboarding processes can be greatly improved by incorporating AI. Consistency in responding to frequently asked questions about employee benefits and career opportunities can enhance the employee experience. This technology can be especially helpful to workers who operate remotely and rarely interact with HR staff in person. A chatbot created by Loka, called Jane, provides real-time answers to a variety of HR questions. She can easily field questions such as "Is Memorial Day a paid holiday?" or "What is the copay for a generic prescription?" Jane can do much more, however. She can be used to proactively promote benefits and programs that employees are not familiar with. Jane can be designed to reach out to employees to notify them of the current wellness programs, like flu shots or weight loss challenges sponsored by the company. She can also collect information and prepare a report to management showing areas of concern. Perhaps many employees are asking questions about a particular learning and development program. Jane can bring this to the attention of HR leaders so that they can investigate further.
Training professionals may also utilize AI technology. IBM's Jill Watson served as a teaching assistant for online courses. She was available to deal with learner questions 24/7/365. This allowed the learner to move forward with the online course rather than waiting for guidance from a live instructor. While not able to field every question, Jill was successful 40 percent of the time. Thus, trainers could spend their time dealing with more complex issues and working with learners face to face.
Dire predictions are being made about a "robot apocalypse" whereby robots will soon replace human workers and unemployment will skyrocket. Which of the following statements, if true, weakens this prediction?
a. Old jobs will be redundant, and new technology will eliminate the need for new job titles.
b. Companies are introducing inflexible scheduling and rigid employment policies, leading to a high attrition rate.
d. Organizations are constantly looking to reduce skills gaps.
Answer:
i think the answer is a
Explanation:
The statement 'Organizations are constantly looking to reduce skills gaps' weakens the prediction of a 'robot apocalypse' because it highlights the ongoing need for human skills and expertise in the job market. This indicates that although AI will automate certain tasks, many jobs which require human creativity and emotional intelligence will remain.
Explanation:The predictions about a 'robot apocalypse' indicate the fear that robots and artificial intelligence (AI) will replace human workers and cause unemployment to skyrocket. The statement that weakens this prediction, among the provided options, is: 'Organizations are constantly looking to reduce skills gaps.'
This statement weakens the prediction because it implies that human skills and expertise will still be in demand in the job market. Although AI can handle routine and predictable tasks efficiently, there are still many tasks that demand human creativity, critical thinking, communication ability, and emotional intelligence. These tasks are hard to automate completely, hence reducing skills gaps will still be a priority for many organizations.
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Fuzzy Monkey Technologies, Inc., purchased as a short-term investment $160 million of 8% bonds, dated January 1, on January 1, 2013. Management intends to include the investment in a short-term, active trading portfolio. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $142 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2013, was $150 million.
Required:
1. Prepare the journal entry to record Fuzzy Monkey's investment on January 1, 2013.
a. Record the Fuzzy Monkey's investment on bonds on January 1, 2013.
2. Prepare the journal entry by Fuzzy Monkey to record interest on June 30, 2013 (at the effective rate).
a.Record the interest revenue on June 30, 2013.
3. Prepare the journal entry by Fuzzy Monkey to record interest on December 31, 2013
a. record interest revenue
4. At what amount will Fuzzy Monkey report its investment in the December 31, 2013, balance sheet?
5. Prepare an entry necessary to achieve the reporting objective.
a. fair value adjustment
6. How would Fuzzy Monkey's 2013 statement of cash flows be affected by this investment?
a. Operating CF
b. Investing CF
Answer:
Following is given the solution for all parts as required.
I hope it will help you!
Explanation:
A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows:Year Cash Flow0 –$ 34,000 1 15,000 2 17,000 3 13,000 If the required return is 14 percent, what is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal)
The Internal Rate of Return (IRR) is the discount rate which makes the net present value of the project's cash flows equal to zero. It can be found by setting up the NPV equation, making it equal to zero, and solve for IRR using a financial calculator or software. If the calculated IRR is greater than the required return of 14 percent, the firm should consider it as a good investment project.
Explanation:The Internal Rate of Return (IRR) is the discount rate that makes the net present value (NPV) of a project zero. In other words, it's the rate at which the present values of the cash inflows equal the initial investment. We can find it by setting up an equation where NPV equals zero and using a financial calculator or appropriate software to solve for IRR. Here's how to do it:
First, set up the equation for NPV, which is: NPV = -34,000 + 15,000/(1 + IRR) + 17,000/(1 + IRR)^2 + 13,000/(1 + IRR)^3Set this equation equal to zero and solve for IRR using a financial calculator or software: 0 = -34,000 + 15,000/(1 + IRR) + 17,000/(1 + IRR)^2 + 13,000/(1 + IRR)^3Once you get the IRR, convert it to a percentage. This is the IRR for this project.If the IRR is greater than the required return of 14 percent, the project is a good investment. If not, the firm should not invest in the project.
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If in January 2007, $1 = 110 yen, and in July 2007, $1 = 90 yen, then a Harley Davidson motorcycle that cost $8,000 in January would now cost _______ in yens in Japan in July.
Answer:
The correct answer is: 720,000 yen.
Explanation:
Currency exchange in January:$1 = 110 yen ---> $8,000 = 8,000 x 110
$8,000 = 880,000 yen
Currency exchange in July:$1 = 90 yen ---> $8,000 = 8,000 x 90
$8,000 = 720,000 yen
Grove Corp. purchased equipment at a cost of $260,000 in January, 2012. As of January 1, 2016, depreciation of $88,000 had been recorded on this asset. Depreciation expense for 2016 is $22,000. After the adjustments are recorded and posted at December 31, 2016. What are the balances for the Depreciation Expense and Accumulated Depreciation?
A Depreciation Expense: $ 22,000; Accumulated Depreciation: $110,000
B Depreciation Expense: $ 22,000; Accumulated Depreciation: $ 88,000
C Depreciation Expense: $110,000; Accumulated Depreciation: $110,000
D Depreciation Expense: $110,000; Accumulated Depreciation: $ 88,000
Answer:
A Depreciation Expense: $ 22,000; Accumulated Depreciation: $110,000
Explanation:
Given that
Purchase cost of equipment = $260,000
Depreciation at the beginning of year 2016 = $88,000
Depreciation expense = $22,000
So, the balance would be
Depreciation expense = $22,000
And, the accumulated depreciation is
= Depreciation expense + Depreciation at the beginning of year 2016
= $22,000 + $88,000
= $110,000
An insurer sells a very large number of policies to people with the following loss distribution: $100,000 with probability 0.005 $ 60,000 with probability 0.010 Loss = $ 20,000 with probability 0.020 $10,000 with probability 0.05 $0 with probability 0.915 a. Calculate the expected claim cost per policy b. Assume claims are paid one year after premiums are received and that the in terest rate is 6 percent. Calculate the dis- counted expected claim cost per policy c. Assume that the only administrative cost is the cost of processing an application, which equals $100 per policy, and that the fair profit loading is $50. What is the fair premium?
Answer:
a) $2000
b) $1,886.7925
C) $2,036.7925
Explanation:
First, the question states to determine the expected claim cost per policy
Expected Claim Cost represents the fund required to be paid by an insurer for a particular contract or a group of contracts as the case maybe. This is usually based on the policy taken.
A) Expected Claim Cost per policy
= (Policy Loss Value A x its probability) + (Policy Loss Value B x its probability) + (Policy Loss Value C x its probability)+(Policy Loss Value D x its probability)+ (Policy Loss Value E x its probability)
= ( (100000 x 0.005 )+ (60000 x 0.010) + (20000 x 0.02) + (10000 x 0.05) + 0 = $2000
Part B: discounted expected claim cost per policy
Since, the sum of $2000 is expected to be paid by the insurer by the end of the year, the interest to be earned based on the rate (discounting used)
=$2,000 ÷ (1 + 0.06)
= $1,886.7925
Part C:: Determine the Fair Premium
Fair Premium is calculated as follows
The discounted policy claim cost + the Processing Cost per application + The fair profit loading
= $1,886.7925+ $100+50 = $2,036.7925
If a firm’s earnings per share grew from $1 to $2 over a 10-year period, the total growth would be 100%, but the annual growth rate would be less than 10%. True or false? Explain.
Answer:
TRUE
Explanation:
as the growth rate follows the law of compounding it will be applied to the increases and then over the icnrease of the increases and so on. Giving a higher grow than 100% if 10 per year is applied:
[tex]Principal \: (1+ r)^{time} = Amount[/tex]
Principal $1.00 earnings
time 10.00 years
growth rate 10% = 10/100 = 0.10000
[tex]1 \: (1+ 0.1)^{10} = Amount[/tex]
Amount 2.59
This will be a grow of 2.59 - 1 = 1.59 = 159% which isn't the 100% percent growth the company actually had
Bond outstanding with a coupon rate of 5.66 percent and semi-annual payments. The bond has a yield to maturity of 6.3 percent, a par value of $2,000, and matures in 16 years. What is the quoted price of the bond?
Answer
Price of bond = 17.96825
Explanation:
Bond price = ∑(C / [tex](1+YTM)^{n}[/tex] )+ P /[tex](1+i)^{n}[/tex]
where
n = no. of years
C = Coupon payments
YTM = interest rate or required yield
P = Par Value of the bond
put values in above equation
price = (5.66%/2) × 2000 × (0.31746) + ( 2000 ÷ 4.595×[tex]10^{18}[/tex])
= 17.96825
Fitzgerald Supermarkets (FS) operates at capacity and decides to apply ABC analysis to three product lines: baked goods, milk and fruit juice, and frozen foods. It identifies four activities their activity cost rates as follows:
Ordering $95 per purchase order
Delivery and receipt of merchandise $76 per delivery
Shelf-stocking $19 per hour
Customer support and assistance $0.15 per item sold
The revenues, cost of goods sold, store support costs, activities that account for the store support costs, and activity-area usage of the three product lines are as follows:
Baked Goods Milk and Fruit Juice Frozen Products
Financial data
Revenues $60,000 $66,500 $50,500
Cost of goods sold $41,000 $51,000 $32,000
Store support $12,300 $15,300 $9,600
Activity-area usage (cost-allocation base)
Ordering (purchase orders) 44 24 14
Delivery (deliveries) 120 60 36
Shelf-stocking (hours) 170 150 20
Customer support (items sold) 15,400 20,200 7,960
Under its simple costing system, FS allocated support costs to products at the rate of 30% of the cost of goods sold.
Required:
1. Use the simple costing system to prepare a product-line profitability report for FS.
2. Use the ABC system to prepare a product-line profitability report for FS.
3. What new insights does the ABC system in requirement 2 provide to FS managers?
Answer:(1) Baked Goods profit $6,700, Milk and Fruit juice profit $200, Frozen Products profit $8,900 (2) Baked Goods profit $160, Milk and Fruit juice profit $2,870, Frozen Products Profit $12,860. (3) it provide insight to FS managers that Frozen Products is the most profitable among the three product lines.
Explanation:
(1) Baked Goods. Milk and Fruit juice. Frozen Products
$ $ $
Revenue. 60,000. 66,500. 50,500
Less : Cost of good sold 41,000. 51,000. 32,000
------------- -------------- ---------------
Gross Margin. 19,000. 15,500. 18,500
Less: Store Support. 12,300. 15,300. 9,600
----------- ------------ -------------
Profit. 6,700. 200. 8,900
------------- --------------- ----------------'
(2)
Baked Goods. Milk and Fruit juice. Frozen Products
$ $ $
Revenue. 60,000. 66,500. 50,500
Less Cost of good sold 41,000. 51,000. 32,000
------------- ---------------- -----------
Contribution. 19,000. 15,500. 18,500
Less Overhead
Ordering cost. 4,180. 2,280. 1,,330
Delivery&Receipt. 9,120. 4,560. 2,736
Shelf Stocking. 3,230. 2,850. 380
Customer Support & Assistant 2,310. 3,030. 1,194
------------ -------------- ------------
Profit. 160. 2,870. 12,860
------------------ ----------------- ---------------
(3) The new insight to FS managers is that Frozen Products is the most profitable among the three products lines
Workings
Ordering cost ($95 × 44) = 4,180 ($95 × 24) = 2,280 ($95 × 14) = 1,330
Delivery &Receipt ($76 × 120) = 9,120 ($76 × 60) = 4,560 ($76 × 36) = 2,736
Shelf Stocking ($19 × 170) = 3,230 ($19 × 150) = 2,850 ( $19 × 20) = 380
Customer Support &Assistant ($0.15 × 15,400) = 2,310 ($0.15 × 20,200) = 3,030 ($0.15 × 7,960)= 1,194
To prepare a product-line profitability report for FS, first, use the simple costing system by allocating support costs to products at a rate of 30% of the cost of goods sold. Second, use the ABC system by calculating the total activity cost for each product line and allocating it based on activity-area usage. The ABC system provides more insights into cost drivers and helps in analyzing profitability.
Explanation:1. Simple costing system:
Under the simple costing system, FS allocates support costs to products at a rate of 30% of the cost of goods sold. To prepare a product-line profitability report, we need to calculate the support costs allocated to each product line by multiplying their respective cost of goods sold by 30%. Then, subtract the allocated support costs from the revenues to determine the profitability.
2. ABC costing system:
Under the ABC costing system, we need to calculate the total activity cost for each product line by multiplying the activity cost rate with the respective activity-area usage. Then, allocate the total activity costs to each product line based on their activity-area usage. Finally, subtract the allocated support costs from the revenues to determine the profitability.
3. New insights from ABC system:
The ABC system provides a more accurate and detailed view of the costs associated with each product line. It allows FS managers to identify the activities that contribute the most to the total support costs and analyze the profitability of each product line based on these cost drivers. This insight helps in making informed decisions regarding product line management and pricing strategies.
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If you wish to accumulate $200,000 in a child’s college fund after 18 years, and can invest at a 7.5% annual rate, how much must you invest at the end of each year if the first deposit is made at the end of the first year?
Answer:
$5,605.79
Explanation:
Given that,
Amount of money wish to accumulate in a child’s college fund after 18 years, future value = $200,000
Annual rate of interest, i = 7.5%
Annual payments, t = 18 years
Future value of ordinary annuity = [tex]P(\frac{(1+i)^{t}-1 }{i})[/tex]
[tex]200,000=P(\frac{(1+0.075)^{18}-1 }{0.075})[/tex]
P = $5,605.7915 or $5,605.79 (Approx)
Hence, payments of $5605.79 needs to be made into the account if $200000 needs to be accumulated.
In economics, the demand for a good refers to the amount of the good that people:_________
a. Will buy at alternative income levels
b. Need to achieve a minimum standard of living.
c. Will buy at various prices
d. Would like to have if the good were free
Answer:
c. Will buy at various prices
Explanation:
Demand can be defined as the amount of goods a consumer is willing to buy at various prices. Elasticity is the degree to which prices respond to changes in price.
For a good with elastic demand as price increases demand for that product is reduced, while a decrease in price leads to increased demand.
Answer:
The correct answer is letter "C": Will buy at various prices.
Explanation:
Demand is the economic term for the consumer's combined desires and wishes as they relate to a specific good or service. In general terms, ceteris paribus, as the demand for a good rises, so does the price of that good. Different needs imply different producers available to fulfill the wants that also mean different prices will be set and accepted by consumers.
What rate of interest with continuous compounding is equivalent to 8% per annum with monthly compounding?
Answer:
8.30% is the rate of interest with continuous compounding is equivalent to 8% per annum with monthly compounding
Explanation:
Per annual rate = r = 8% = 0.08
Numer of compounding = m
Compounding Interest rate = ( ( 1 + r / m )^m ) - 1
Compounding Interest rate = ( ( 1 + 0.08 / 12 )^12 ) - 1
Compounding Interest rate = 0.0829995
Compounding Interest rate = 0.083
Compounding Interest rate = 8.30%
So, 8.30% is the rate of interest with continuous compounding is equivalent to 8% per annum with monthly compounding.
The level of industry demand: a. has little effect on competition in the industry. b. is one of the determinants of the intensity of rivalry in the industry. c. increases when customers exit a marketplace. d. does not impact the market share that established companies hold. e. decreases the rivalry among established companies, when in decline.
Answer: b. is one of the determinants of the intensity of rivalry in the industry.
Explanation: intensity of rivalry occurs between competitors in an industry and it is the extent to which firms in the industry impact one another to either maximize their profit potential or limit it. Competing firms in most industries are mutually dependent in such a way that any move by any one firm is noticeable by another. As such, rivals harness various strategies based on price, product, advertising etc. to boost their profit while limiting profitability of others. These strategies often increase the cost of operation leading lower supply or reduce the price of
products leading to greater demand. Consequently, the intensity of rivalry among firms in an industry is an integral part of determining the condition a firm is in for doing business.
A municipal bond carries a coupon rate of 8.00% and is trading at par. What would be the equivalent taxable yield of this bond to a taxpayer in a 40% combined tax bracket? (Round your answer to 2 decimal places.)
Answer:
13.33%
Explanation:
The computation of the equivalent taxable yield is shown below:
Data provided in the question
Coupon rate = 8%
Combined tax bracket = 40%
So, the equivalent taxable yield by using the above information is
= (Coupon rate) ÷ (1 - tax rate)
= 8% ÷ 1 - 0.40
= 8% ÷ 0.60
= 13.33%
Basically we divide the coupon rate by the percentage after considering the tax rate
The equivalent taxable yield for a municipal bond with an 8% yield for an investor in a 40% tax bracket is 13.33%. This is calculated by dividing the bond's yield by (1 - tax rate). The value of tax-exemption rises with the taxpayer's tax bracket.
Explanation:To calculate the equivalent taxable yield of a municipal bond for an investor in a 40% combined tax bracket, you would divide the tax-exempt yield (in this case 8.00%) by 1 minus the tax rate (in this case 0.40). Hence, the equivalent taxable yield would be calculated as 8.00%/(1-0.40)= 13.33%. So, for an investor in a 40% tax bracket, a municipal bond yielding 8% would be equivalent to investing in a taxable bond or investment yielding 13.33%. It is important to note that the value of the tax exemption is more pronounced the higher the taxpayer's marginal tax bracket.
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A T-bill quote sheet has 60-day T-bill quotes with a 4.95 ask and a 4.89 bid. If the bill has a $10,000 face value, an investor could sell this bill for _____.
a. $9,918.50
b. $9,919.62
c. $9,917.50
d. $10,000
Answer:The correct answer is a). $9,918.50
Explanation: In selling, the investor will use the bid price of $4.89 alongside the face value of the bill.
That is to say, the face value * (1-(bid price * no. of days)/days in a year) = 10000 * (1-(0.0489*60)/360) = $9,918.50
Answer:
c. $9,917.50
Explanation:
The bid price is the rate at which an investor will buy (4.89). While the ask price is the rate at which the T bill will be sold ($4.95).
In this question we are concerned with the ask price.
To calculate the selling price use the following formula
Yield discount= (face value-price)/face value * (360/maturity)
4.95%= (10,000- price)/10,000 * (360/60)
Cross-multiply
10,000 * 0.0495= (10,000- price) * 6
495/6= 10,000- price
price= 10,000-82.5
Price= $9,917.50