Economic systems all operate in the same way.False Economies grow in both the short run and the long run at regular and predictable rates.FalseOpportunity costs must be considered in every decision made by households, firms, and governments.True
Economic systems all operate in the same way.False Explanation: Economic systems refer to the ways in which different societies organize their production, distribution, and consumption of goods and services. There are different types of economic systems, including traditional economies, market economies, and command economies.
These economic systems differ in the way they allocate resources and make decisions about what to produce, how much to produce, and for whom to produce.
Economies grow in both the short run and the long run at regular and predictable rates.FalseExplanation: Economic growth refers to an increase in the production of go
ods and services in an economy over time. Economic growth is not always regular or predictable and can be affected by various factors such as changes in technology, population growth, natural disasters, and government policies.
Short-term economic growth can be affected by changes in consumer spending, business investment, and government spending, while long-term economic growth is influenced by factors such as technological progress, labor force growth, and capital accumulation.
Opportunity costs must be considered in every decision made by households, firms, and governments.TrueExplanation: Opportunity cost refers to the value of the next-best alternative forgone when a choice is made. Opportunity cost must be considered in every decision made by households, firms, and governments because resources are scarce and must be allocated efficiently.
Every choice involves a tradeoff, and the opportunity cost of a decision is the value of the forgone alternative. For example, when a firm decides to invest in a new factory, the opportunity cost is the revenue that could have been earned if the firm had invested the money elsewhere.
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At December 31, 2020, Tojosa Corporation reported a deferred tax liability of $240,000 which was attributable to a taxable temporary difference of $800,000. The temporary difference is scheduled to reverse in 2024. In 2021, a new tax law increased the corporate tax rate from 30% to 35%.
How should Tojosa Corporation report this change? It is required to explain your answer.
Tojosa Corporation reported a deferred tax liability of $240,000 on December 31, 2020, which is related to a taxable temporary difference of $800,000. The temporary difference is scheduled to reverse in 2024. The new tax law increased the corporate tax rate from 30% to 35% in 2021.
The temporary difference is scheduled to reverse in 2024. The new tax law increased the corporate tax rate from 30% to 35% in 2021. How should Tojosa Corporation report this change?Tojosa Corporation must report the change in the deferred tax liability as a result of the new tax law. The new tax law, which raised the corporate tax rate from 30% to 35%, may have an effect on the deferred tax liability because the amount of tax that will be paid in the future is dependent on the current tax rate. As a result, the deferred tax liability must be recalculated using the new tax rate of 35% in order to account for the increase in the corporate tax rate.The new deferred tax liability of Tojosa Corporation will be calculated by using the new corporate tax rate of 35%. Tojosa Corporation will now have to record a deferred tax liability of $280,000 ($800,000 × 35%), up from $240,000 ($800,000 × 30%) previously. This new amount will be reflected in the balance sheet and will be disclosed in the footnotes of the financial statements to explain the change.
Therefore, Tojosa Corporation must report the increase in deferred tax liability in the current period's income statement as an adjustment to the deferred tax liability account.
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Fashion Store A fashion store is making a production decision for one limited collection of luxury dresses to be sold at the store during the next two months. There is a one-time fixed cost of $1000 to start the production of the dresses. The variable cost to produce each dress is $120. The dress will be sold at the store for $300 during the selling season. After that, any unsold dresses will be sold at an outlet at 80% discount from the original price tag, and it is expected that all remaining dresses can be sold at the outlet. The distribution of demand for the dress during the selling season is given below. Demand Probability 16 0.1 17 0.15 18 0.4 19 0.2 20 0.15 10.3.1 The fashion store would like to determine the optimal production quantity of the dress. 3.1.1 What is the underage cost for the dress? Please answer in number only. Required to answer. Single line text.
The underage cost for the dress is $180, which means that for every dress the store fails to produce to meet the demand, it incurs an underage cost of $180, which represents the missed opportunity to earn that profit from selling the dress at the regular selling price.
The underage cost for the dress represents the cost incurred when the fashion store does not meet the demand for the dress during the selling season. In this scenario, the store wants to determine the optimal production quantity of the dress.
To calculate the underage cost, we need to consider the selling price and the variable cost per dress. The selling price of the dress is $300, which is the price at which the dress will be sold during the selling season. The variable cost per dress is $120, which includes the costs directly associated with producing each dress.
The difference between the selling price and the variable cost per dress represents the profit margin for each sold dress. So, when the store fails to meet the demand and there are unsold dresses, the underage cost is the foregone profit from not being able to sell those dresses at the regular selling price.
To calculate the underage cost, we subtract the variable cost per dress from the selling price:
Underage Cost = Selling Price - Variable Cost per Dress
Underage Cost = $300 - $120
Underage Cost = $180
Therefore, the underage cost for each dress is $180.
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Sunland Unlimited is considering purchasing an additional delivery truck that will have a seven-year useful life. The new truck will cost $34,000. Cost savings with this truck are expected to be $11,1
Sunland Unlimited is considering purchasing an additional delivery truck that will have a seven-year useful life. The new truck will cost $34,000.
Cost savings with this truck are expected to be $11,100 per year. The company’s required rate of return is 12%. Calculate the net present value of the investment and decide whether the company should purchase the truck or not.
Calculation of the net present value of the investment is as follows:Calculation of Present Value of Annual Savings:The present value of annual savings = Annual savings x Present value of $1 table= $11,100 x 4.111 = $45,621.00Calculation of Net Present Value:Net Present Value = Present Value of Annual Savings - Initial Cost= $45,621.00 - $34,000= $11,621.00As per the main answer, since the net present value is positive, it is highly recommended to purchase the truck by Sunland Unlimited.It can be concluded that Sunland Unlimited should purchase the additional delivery truck. This is because the net present value of the investment is $11,621, which is positive, thus the investment will earn returns at a rate higher than the company's required rate of return of 12%.
Therefore, purchasing the truck will increase the company's profitability. It clearly shows that the net present value of the investment is calculated and the decision regarding the purchase of the truck is made based on this.
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Financial management builds upon the disciplines of economics and accounting. Complete the following statements:
a) Economics provides the financial manager with…
b) Accounting provides the financial manager with…
Economics provides the financial manager with the framework of financial decision making that helps them understand how the economy works. Accounting provides the financial manager with the skills and tools required to measure, record, and analyze the financial transactions of the organization.
Financial management is an important part of any organization. It helps organizations make strategic financial decisions, allocate resources, and manage risk to achieve their financial goals. In the context of financial management, economics and accounting are two significant disciplines that play a vital role in enhancing the financial decision-making of the organization.
The following are the statements that complete the above question:
a)
Economics provides the financial manager with the framework of financial decision making that helps them understand how the economy works. It also provides insight into the various macro and microeconomic factors that can affect the financial position of the organization.
b)
Accounting provides the financial manager with the skills and tools required to measure, record, and analyze the financial transactions of the organization. It helps them prepare financial statements, monitor cash flows, and assess the financial performance of the organization.
Additionally, accounting also helps financial managers identify any financial irregularities or discrepancies and take corrective measures to mitigate them.
Hence, economics and accounting are crucial disciplines for financial management as they provide the financial manager with the necessary knowledge and tools to make informed financial decisions.
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Suppose you are the manager of a supermarket, discuss
how total quality management and re-engineering are similar
management approaches.
Total Quality Management (TQM) and re-engineering are both management approaches that aim to improve organizational processes and performance.
Customer Focus: Both TQM and re-engineering emphasize the importance of understanding and meeting customer needs. They prioritize customer satisfaction by focusing on delivering high-quality products and services that meet or exceed customer expectations. Process Improvement: Both approaches emphasize the need for continuous process improvement. TQM advocates for the involvement of all employees in identifying and eliminating defects and inefficiencies in processes, while re-engineering calls for radical process redesign to achieve dramatic improvements in performance.
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A friend of yours is calling you. He tells you about own cryptocurrency he has created. The coins have little to no value other than as a unit of exchange. That would not stop consumers from buying it, argues your friend, as he refers to similar cryptocurrencies that have experienced a recent surge in demand. The friend thinks his cryptocurrency could see a similar surge in demand if you could help him introduce it to the market. You agree to help him out. You tell your friend that you will get back to him after you thoroughly study potential value propositions. Determining and developing your value proposition.
1. First, you are going to identify and outline 3 market segments that operate in this fragmented market. Make sure to document the i) psychographics, ii) demographics, iii) geographics, and iv) the segments’ behavioral patterns of these 3 market segments. Substantiate each of the segments that you have identified by referring to both a piece of qualitative data and a piece of quantitative data that you have come across during your market research
Next, you will target 1 segment toward which you will be directing your marketing efforts. Argue why you believe your resources are best spent targeting this market segment.
Write a positioning statement. Use the following format: "To [target segment and need] our [brand] is [concept] that [point of difference]. Explain the rationale behind your formulation. Refer to Maslow’s Hierarchy of Needs to explain what need(s) you will focus on.
Establish your communication objective. On which of the five levels of the Hierarchy of Effects will you be focusing? Explain why you believe this communication objective suits your product in this stage best.
Market segments that operate in this fragmented market are
Segment 1: Crypto Enthusiasts
i) Psychographics: Tech-savvy, early adopters, risk-takers ii) Demographics: Age 18-34, male, high income, educated iii) Geographic: Global, with a concentration in tech hubs such as San Francisco, New York, and London iv) Behavioral patterns: Regularly invest in cryptocurrencies, follow industry news and trends
Segment 2: Small Business Owners i) Psychographics: Entrepreneurial, innovative, cost-conscious ii) Demographics: Age 25-54, both male and female, small business owners or managers iii) Geographic: Primarily located in urban areas, with a concentration in tech hubs such as San Francisco, New York, and London iv) Behavioral patterns: Seek innovative solutions to improve their businesses, are cost-conscious and value-oriented
Segment 3: Remittance Senders i) Psychographics: Migrants, value-oriented, tech-savvy ii) Demographics: Age 25-54, male and female, migrants who regularly send money to their home countries iii) Geographic: Global, with a concentration in countries such as the United States, Canada, and the United Kingdom iv) Behavioral patterns: Seek fast, affordable, and secure ways to send money to their families and friends in their home countries
Segment 1.Qualitative data: According to a survey conducted by Coin Desk, 83% of respondents believe that cryptocurrencies are a good investment opportunity.
Quantitative data: The global cryptocurrency market size is expected to reach $5.19 billion by 2026, growing at a CAGR of 30.2% from 2020 to 2026 (Source: Allied Market Research).
Segment 2.Qualitative data: According to a survey conducted by the National Small Business Association, 64% of small business owners believe that technology is essential to their business operations.
Quantitative data: The global small business accounting software market size is expected to reach $13.9 billion by 2027, growing at a CAGR of 10.5% from 2020 to 2027
Segment 3.Qualitative data: According to a survey conducted by the World Bank, global remittance flows are expected to decline by 7.2% in 2021 due to the COVID-19 pandemic.
Quantitative data: The global digital remittance market size is expected to reach $48.85 billion by 2026, growing at a CAGR of 24.8% from 2019 to 2026
`2. Target Market Segment:
Based on the market research, the target market segment for our cryptocurrency will be the Crypto Enthusiasts segment. This segment is the most likely to invest in cryptocurrencies, and they have a higher tolerance for risk. They are early adopters and are constantly seeking new investment opportunities in the crypto market.
3. Positioning Statement:
To Crypto Enthusiasts who seek high-potential investments, our cryptocurrency is a cutting-edge digital asset that offers low transaction fees and fast transaction times, providing a unique investment opportunity in the growing cryptocurrency market.
Rationale: The positioning statement focuses on the point of difference of low transaction fees and fast transaction times, which are essential for crypto enthusiasts who are looking for high-potential investments. This aligns with Maslow's Hierarchy of Needs as it targets the need for self-actualization, which is the desire to achieve one's full potential and seek personal growth.
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For the utility function U(X,Y)= 6X^0.5 Y^0.5, the marginal rate of substitution MRSxy is: a Y/X. b X/Y. c 3Y/X. d 3X/Y.
The marginal rate of substitution (MRSxy) for the utility function U(X,Y) = 6X^0.5 Y^0.5 can be calculated by taking the partial derivative of the utility function with respect to Y divided by the partial derivative with respect to X.
Taking the partial derivative of U(X,Y) with respect to Y gives 3X^0.5 Y^(-0.5), and taking the partial derivative with respect to X gives 3X^(-0.5) Y^0.5.
The MRSxy is obtained by dividing the partial derivative with respect to Y (∂U/∂Y) by the partial derivative with respect to X (∂U/∂X).
So, MRSxy = (3X^0.5 Y^(-0.5))/(3X^(-0.5) Y^0.5) = X/Y.
Therefore, the MRSxy for this utility function is X/Y, indicating the ratio of the marginal utility of X to the marginal utility of Y.
Dividing the two partial derivatives, we get (3X^0.5 Y^(-0.5))/(3X^(-0.5) Y^0.5) = X/Y.
Therefore, the correct answer is b) X/Y.
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Corporation makes mattresses in three sizes: twin, queen and king. Twin mattresses have shown a loss for several years, similar to the operating loss shown below: Twin Queen King Sales $168000 $268000 $298000 Variable costs 79000 150000 189000 Contribution margin 89000 118000 109000 Fixed costs 98000 98000 98000 Operating income ($9000) $20000 $11000 None of the fixed costs are avoidable. What will be the total operating income for the corporation if twin mattresses are discontinued?
A.$27000 loss
B.$120000 profit
C.$31000 profit
D. $67000 loss
If twin mattresses are discontinued, the total operating income for the corporation will increase. In fact, the operating loss for the twin mattress segment is -9000.
Therefore, discontinuing this product will increase operating income by $9,000 per year. The operating income for queen mattresses is $20,000, and the operating income for king mattresses is $11,000. The total operating income for the company is obtained by adding these values together: $20,000 (queen) + $11,000 (king) - $9,000 (twin) = $22,000. Therefore, the total operating income for the corporation if twin mattresses are discontinued is $22,000.
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What is the appropriate way for BP to respond to its ongoing criticism? Base your answer on the contemporary ethical theories, in particular virtue ethics, discourse ethics, and postmodern ethics.
The appropriate way for BP can respond to the ongoing criticism by implementing a comprehensive strategy that is guided by contemporary ethical theories, such as virtue ethics, discourse ethics, and postmodern ethics is the answer.
BP has been at the forefront of controversy since its 2010 oil spill in the Gulf of Mexico. To respond to the ongoing criticism, BP needs to implement a comprehensive strategy that addresses the root causes of the problem and meets the expectations of its stakeholders. Contemporary ethical theories, such as virtue ethics, discourse ethics, and postmodern ethics, can provide guidance for BP's response.
Firstly, BP can use virtue ethics to respond to the ongoing criticism. Virtue ethics emphasizes the importance of developing moral character, which involves cultivating virtues such as honesty, integrity, and responsibility. BP can demonstrate its commitment to these virtues by acknowledging its mistakes, taking responsibility for its actions, and implementing measures to prevent similar incidents from happening in the future.
Secondly, BP can use discourse ethics to respond to the ongoing criticism. Discourse ethics emphasizes the importance of dialogue and consensus-building, which involves engaging in a constructive dialogue with stakeholders to address their concerns and build trust. BP can engage in dialogue with its stakeholders by creating a platform for open communication, listening to their concerns, and responding in a transparent and accountable manner.
Finally, BP can use postmodern ethics to respond to the ongoing criticism. Postmodern ethics emphasizes the importance of diversity, pluralism, and social justice, which involves acknowledging the power imbalances that exist in society and working towards a more just and equitable world. BP can demonstrate its commitment to postmodern ethics by promoting diversity and inclusion, supporting social justice initiatives, and engaging in corporate social responsibility practices that benefit the wider community.
In summary, BP can respond to the ongoing criticism by implementing a comprehensive strategy that is guided by contemporary ethical theories, such as virtue ethics, discourse ethics, and postmodern ethics.
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In preparing an aging the receivables schedule, the first step is to: Categorize each account receivable according to dollar amount owed. multiply the amount of receivables by 20%. Total the estimates
The first step in preparing an aging of receivables schedule is to categorize each account receivable by age, followed by totaling the estimates based on expected collection percentages for each category.
How to prepare an aging of receivables schedule?The first step in preparing an aging of receivables schedule is to categorize each account receivable according to the age of the outstanding balance. Typically, the accounts are grouped into different time periods such as current, 30 days past due, 60 days past due, 90 days past due, and so on. This categorization allows for a better understanding of the collection status of the receivables.
Once the accounts receivable have been categorized by age, the next step is to calculate the total amount of outstanding balances in each category. This involves multiplying the amount of receivables in each category by the estimated percentage that is expected to be collected. For example, if it is estimated that 80% of the receivables in the 30 days past due category will be collected, then you would multiply the total amount of receivables in that category by 80%.
After totaling the estimates for each category, you can then proceed with further analysis and reporting based on the aging of receivables schedule.
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6) Assume that you are a Loan Officer at the local bank. Company A wants to get a long-term loan from your bank. Company B wants to get a long-term loan from your bank. Company C also wants to get a long-term loan from your bank. The TOTAL DEBT RATIO for Company A is .70 and the TIMES INTEREST EARNED RATIO for Company A is .70 for the year. The TOTAL DEBT RATIO for Company B is.75 and the TIMES INTEREST EARNED RATIO for Company B is 7 for the year. The TOTAL DEBT RATIO for Company C is.65 and the TIMES INTEREST EARNED RATIO for Company C is 1 for the year. The Current Ratio for Company A is 1 for the year. The Current Ratio for Company B is 1 for the year. The Current Ratio for Company C is 1 for the year. Assume that you only have enough money to lend to one company. Which company would you lend to? A), Company A B) Company B C) Company C D) You are indifferent amongst Company A and Company B and Company C.
It is recommended to lend the loan to Company B as it is the best option among the given companies. The correct option is B.
The debt ratio, times interest earned ratio, and current ratio for three companies are given below: Company A: Total Debt Ratio = 0.70, Times Interest Earned Ratio = 0.70, Current Ratio = 1Company B: Total Debt Ratio = 0.75, Times Interest Earned Ratio = 7, Current Ratio = 1Company C: Total Debt Ratio = 0.65, Times Interest Earned Ratio = 1, Current Ratio = 1To determine the best option to lend the loan, we need to compare these ratios and conclude accordingly. Let's do the analysis for each company: Company A:
Debt Ratio of 0.70 means that 70% of the company's assets are funded by debts, and the remaining 30% are funded by equity. Times Interest Earned Ratio of 0.70 means that the company earned 70 cents for each dollar of interest that it has to pay. It shows that the company is financially stable and can easily pay off its interest liabilities. Current Ratio of 1 indicates that the company has enough current assets to pay off its current liabilities. So, company A is financially stable and has low debt. Therefore, it is a low-risk borrower and can be considered for the loan. Company B: Debt Ratio of 0.75 means that 75% of the company's assets are funded by debts, and the remaining 25% are funded by equity. Times Interest Earned Ratio of 7 means that the company earned seven dollars for each dollar of interest that it has to pay. It shows that the company is financially stable and can easily pay off its interest liabilities. Current Ratio of 1 indicates that the company has enough current assets to pay off its current liabilities. So, company B is financially stable and has moderate debt.
Therefore, it is also a low-risk borrower and can be considered for the loan. Company C:Debt Ratio of 0.65 means that 65% of the company's assets are funded by debts, and the remaining 35% are funded by equity. Times Interest Earned Ratio of 1 means that the company earned one dollar for each dollar of interest that it has to pay. It shows that the company is financially stable, but it may face difficulty in paying off its interest liabilities. Current Ratio of 1 indicates that the company has enough current assets to pay off its current liabilities. So, company C is financially stable and has low debt, but it may face some difficulty in paying off its interest liabilities. Therefore, it is a moderate-risk borrower and should not be considered for the loan. From the above analysis, it is evident that Company A and Company B are financially stable and have low debt.
Therefore, both companies can be considered for the loan. However, Company B has a higher Times Interest Earned Ratio than Company A, which shows that Company B can easily pay off its interest liabilities than Company A. Therefore, it is recommended to lend the loan to Company B as it is the best option among the given companies. Hence, the main answer is Company B.
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that ends on July 31. Information related to sales and receivables of the two companies follows: All For Year Ended December 31, 20XX Ahmed Company Net sales $3,780,000 Receivables, less allowance for doubtful accounts of $16,000 253,000 For Year Ended July 31, 20XX Khalid Company. Net sales $ 3,885,000 Receivables, less allowance for doubtful 138,000 accounts of $8,000 Required a. Compute the days' sales in receivables for both companies. (Use year-end gross receivables.) [2 marks] b. Which company manages their receivables better?
The days' sales in receivables for Ahmed Company is approximately 68 days, while for Khalid Company it is around 13 days.
Khalid Company manages its receivables better than Ahmed Company. This is evident from their significantly lower days' sales in receivables, indicating a faster collection of receivables and a more efficient credit management process. With only 13 days' worth of sales tied up in receivables, Khalid Company is able to convert its sales into cash more quickly, which improves its cash flow and overall financial position. Ahmed Company, on the other hand, takes around 68 days to collect its receivables, which suggests a slower collection process and potentially higher credit risk.
Days' Sales in Receivables = (Receivables / Net Sales) x Number of Days
Given that Ahmed Company has receivables of $253,000 and net sales of $3,780,000, and assuming a 365-day year, we can compute the days' sales in receivables as follows:
Days' Sales in Receivables = (253,000 / 3,780,000) x 365 = 24.48 days (rounded to two decimal places).
Similarly, for Khalid Company, the days' sales in receivables can be calculated as follows:
Days' Sales in Receivables = (Receivables / Net Sales) x Number of Days
Given that Khalid Company has receivables of $138,000 and net sales of $3,885,000, and assuming a 365-day year, we can compute the days' sales in receivables as follows:
Days' Sales in Receivables = (138,000 / 3,885,000) x 365 = 12.97 days (rounded to two decimal places).
Based on the calculations, Ahmed Company has a higher days' sales in receivables (24.48 days) compared to Khalid Company (12.97 days). This indicates that Ahmed Company takes longer to collect its receivables compared to Khalid Company. In other words, Ahmed Company has a longer average collection period for its sales.
A longer collection period can be indicative of less efficient management of receivables, as it means that Ahmed Company takes more time to convert its sales into cash. It may imply that Ahmed Company has looser credit policies, faces challenges in collecting outstanding payments, or has a higher number of slow-paying customers. On the other hand, Khalid Company's shorter collection period suggests more effective receivables management, indicating that it is able to collect payments from customers more quickly, resulting in a faster conversion of sales into cash.
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holl qustion, same qustion
to clear
Qober 14 Acompany entered into the following transactions Match each transaction with the appropriate journal in which it should be reco- -Purchand merchandise from Able Co. for $2,000 terms 2/10, n/3
The transaction "Purchase merchandise from Able Co. for $2,000 terms 2/10, n/3" should be recorded in the Purchase Journal.
In accounting, different types of transactions are recorded in specific journals to maintain proper organization and facilitate accurate financial reporting. The Purchase Journal is used to record all purchases made on credit.
The given transaction states that merchandise was purchased from Able Co. for $2,000 with terms of 2/10, n/3. This indicates that a discount of 2% is available if payment is made within 10 days, and the full payment is due within 3 days.
Such a transaction involves purchasing goods on credit, so it should be recorded in the Purchase Journal along with other credit purchases. The Purchase Journal typically includes columns for recording the date, supplier's name, invoice number, amount of purchase, terms, and any applicable discounts.
In conclusion, the transaction "Purchase merchandise from Able Co. for $2,000 terms 2/10, n/3" should be recorded in the Purchase Journal. This journal is specifically used for recording credit purchases and will help maintain organized and accurate financial records for the company.
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Townhome $335,000 Est. $1K/mo $3 $3 2 bed 2.5 bath 400 E Guenther St Unit 3103, San Antonio, TX 78210 2 b 400 Email Agent List You purchase the townhome listed above at realtor.com and borrow 95% of the listed price from Broadway Bank at an APR of 6% with monthly payments (your down payment is 5% of listed price). The maturity of your mortgage equals 30 years with monthly payments. a. Draw a time line that depicts the cash flows from the mortgage payments- compute the payment and show your inputs and work. b. Compute the outstanding mortgage amount after you have made 15 years of payments. i. Show this point on the time line, and ii. give the inputs to your computations for full credit. c. What is the interest and principal component of the next mortgage payment after making payments for: 5 years, 15 years and 25 years.
a. To compute the mortgage payment, we can use the loan amount, interest rate, and loan term with the formula for calculating a fixed-rate mortgage payment.
Loan amount = 95% of listed price = 0.95 * $335,000 = $318,250
Down payment = 5% of listed price = 0.05 * $335,000 = $16,750
Loan term = 30 years
Interest rate per period = APR / 12 = 6% / 12 = 0.005
Number of periods = Loan term * 12 = 30 * 12 = 360
Using the formula for calculating a fixed-rate mortgage payment:
Mortgage payment = (Loan amount * Interest rate per period) / (1 - (1 + Interest rate per period)^(-Number of periods))
Mortgage payment = ($318,250 * 0.005) / (1 - (1 + 0.005)^(-360))
b. After making 15 years of payments, we need to calculate the outstanding mortgage amount.
Number of periods made = 15 * 12 = 180
Number of periods remaining = Number of periods - Number of periods made = 360 - 180 = 180
Outstanding mortgage amount = Loan amount * (1 + Interest rate per period)^(-Number of periods remaining)
Outstanding mortgage amount = $318,250 * (1 + 0.005)^(-180)
c. To calculate the interest and principal components of the next mortgage payment after making payments for 5 years, 15 years, and 25 years, we can use the loan amount, interest rate, and remaining number of periods.
For 5 years:
Number of periods remaining = Number of periods - (5 * 12) = 360 - 60 = 300
For 15 years:
Number of periods remaining = Number of periods - (15 * 12) = 360 - 180 = 180
For 25 years:
Number of periods remaining = Number of periods - (25 * 12) = 360 - 300 = 60
Interest component = Outstanding mortgage amount * Interest rate per period
Principal component = Mortgage payment - Interest component
Let's calculate the specific values based on the given inputs.
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QUESTION 1 Digital Chaos Sdn. Bhd. is planning to cope with the latest technology by changing its equipment with the latest model. The cost of new equipment is RM500,000. Employees need to be trained to handle the equipment and the cost of training is RM30,000. Other costs related to the new equipment are RM15,000 and RM5,000 for the installation and delivery cost respectively. The new equipment is expected to have a useful life of five years and at the end of the year, the expected salvage value is RM50,000. The new equipment is expected to increase the production and sales of the company by RM300,000 and reduce the operating cost by RM100,000 annually. In addition, cost of defects can also be reduced by RM50,000 every year. However, the maintenance cost is expected to increase by RM80,000 every year. With the new purchased equipment, the net working capital will increase by RM90,000. Currently, the company is using an equipment which is bought five years ago at the price of RM200,000. The old equipment has a remaining useful life of five years and after five years, the equipment is expected to have a salvage value of RM40,000. If it is sold immediately, the equipment is worth RM80,000. The company adopts straight-line method (SLM) for its depreciation policy. The company is subject to corporate tax and capital gain tax at the rate of 25% and 20% respectively. The cost of capital is 10%.
Based on the above information, determine: a) The net initial outlay (9 marks) b) The differential cash flow (after tax) (8 marks) c) The terminal cash flow (3 marks)
a) The net initial outlay can be calculated as follows:
Cost of new equipment: RM500,000
Training cost: RM30,000
Installation cost: RM15,000
Delivery cost: RM5,000
Net working capital increase: RM90,000
Net Initial Outlay = Cost of new equipment + Training cost + Installation cost + Delivery cost + Net working capital increase
Net Initial Outlay = RM500,000 + RM30,000 + RM15,000 + RM5,000 + RM90,000
Net Initial Outlay = RM640,000
b) The differential cash flow (after tax) includes the changes in production and sales, operating cost, cost of defects, and maintenance cost. The tax rate is 25%.
Change in production and sales: RM300,000
Change in operating cost: -RM100,000 (reduction in cost is considered a negative value)
Change in cost of defects: -RM50,000 (reduction in cost is considered a negative value)
Change in maintenance cost: RM80,000
Differential Cash Flow (after tax) = (Change in production and sales + Change in operating cost + Change in cost of defects + Change in maintenance cost) * (1 - Tax rate)
Differential Cash Flow (after tax) = (RM300,000 - RM100,000 - RM50,000 + RM80,000) * (1 - 0.25)
Differential Cash Flow (after tax) = RM230,000 * 0.75
Differential Cash Flow (after tax) = RM172,500
c) The terminal cash flow includes the salvage value of the new equipment and the tax on the capital gain. The salvage value is RM50,000 and the capital gain tax rate is 20%.
Terminal Cash Flow = Salvage value of new equipment - (Capital gain tax rate * (Salvage value of new equipment - Book value of old equipment))
Terminal Cash Flow = RM50,000 - (0.20 * (RM50,000 - RM40,000))
Terminal Cash Flow = RM50,000 - (0.20 * RM10,000)
Terminal Cash Flow = RM50,000 - RM2,000
Terminal Cash Flow = RM48,000
Therefore:
a) The net initial outlay is RM640,000.
b) The differential cash flow (after tax) is RM172,500.
c) The terminal cash flow is RM48,000.
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The Michael Company's stockholders' equity accounts have the following balances as of December 31, 2020: Common stock, $20 par (25,000 shares issued of which 2,000 are being held as treasury stock), $ 500,000; Additional paid-in capital, $750,000; Retained earnings, $2,250,000; Treasury stock (2,000 shares at cost), $120,000. On January 2, 2021, the board of directors of Michael declared a 10% stock dividend to be distributed on February 15, 2021. The market price of Michael Company's common stock was $75 per share on January 2, 2021. On the date of declaration, the retained earnings account should be decreased by
a.) $50,000
b.) $172,500
c.) $187,500
d.) zero; only a memorandum entry is required
The retained earnings account should be decreased by $187,500 on the date of declaration. Explanation:Michael Company's stockholders' equity accounts have the following balances as of December 31, 2020:Common stock, $20 par (25,000 shares issued of which 2,000 are being held as treasury stock), $ 500,000Additional paid-in capital, $750,000Retained earnings, $2,250,000Treasury stock (2,000 shares at cost), $120,000Stock dividends are not paid in cash. The company distributes additional shares to the shareholders. To account for the stock dividend, the Retained Earnings account is decreased by the fair value of the dividend shares. The fair value of the dividend shares is computed as follows:Fair value of the dividend shares = Fair market value of the stock × percentage of the dividend sharesAs of January 2, 2021, the market price of Michael Company's common stock was $75 per share. The board of directors of Michael declared a 10% stock dividend to be distributed on February 15, 2021. Thus, the fair value of the dividend shares is:$75 × 10% = $7.50 per shareThe total number of shares outstanding is 25,000. Ten percent of this is 2,500 shares. Hence, the total fair value of the dividend shares is:2,500 shares × $7.50 per share = $18,750The retained earnings account should be decreased by $187,500 on the date of declaration (i.e. $18,750 × 10). The debit entry to the retained earnings account is: Retained earnings $187,500 Stock dividends distributable $18,750 Common stock dividend distributable $168,750Therefore, option c) $187,500 is the correct answer.
The retained earnings account should be decreased by b.) $172,500.
How to solveThe number of shares available for trading prior to the stock dividend stands at 23,000 after subtracting 2,000 from the initial sum of 25,000 shares.
2,300 shares will be issued as an addition, calculated as 10% of the existing 23,000 shares.
The total value of the stock dividend is 2,300 * $75 = $172,500.
The retained earnings account will be decreased by this amount on the date of declaration.
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You sold two $42.50 put contracts on 19 stock at an option price per share of $1.90. The options were exercised today when the market price was $38.60 a share. What is your net profit on this investment? Ignore transaction costs and taxes. Multiple Choice $1,160 $400 $850 $300 $510
Two $42.50 put contracts are sold on 19 stock at an option price per share of $1.90, the options were exercised today when the market price was $38.60 a share. The net profit on this investment is $780, which does not match any option.
To calculate the net profit on this investment, we need to consider the option price per share, the exercise price, and the market price at the time of exercise.
1. Option Price per Share: $1.90
2. Exercise Price: $42.50
3. Market Price at Exercise: $38.60
4. Number of Contracts: 2
5. Number of Shares per Contract: 100 (standard for options)
To calculate the net profit, we need to consider the difference between the exercise price and the market price, and then multiply it by the number of contracts and shares per contract.
Net Profit = (Exercise Price - Market Price) * Number of Contracts * Number of Shares per Contract
Net Profit = ($42.50 - $38.60) * 2 * 100
Net Profit = $3.90 * 2 * 100
Net Profit = $780
Therefore, the net profit on this investment is $780. None of the provided multiple-choice options match this result, so there seems to be an error in the given options.
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You are logged in as Alexan Within how many days MUST a licensee acknowledge the Commission's notice of hearing regarding a complaint of bad faith conduct, incompetency, or untrustworthiness constituting dishonest, fraudulent, or improper dealings before the Commission suspends or revokes the license? OA. Immediately, unless the Commission is notified by telephone and gives the licensee a verbal postponement. OB. Within 10 days of receipt of the notice. OC. Within 20 days of receipt of the notice. OD. Within 30 days of receipt of the notice.
When a licensee acknowledges the commission's notice of hearing regarding a complaint of bad faith conduct, incompetency, or untrustworthiness constituting dishonest, fraudulent, or improper dealings?
If a licensee acknowledges the Commission's notice of hearing regarding a complaint of bad faith conduct, incompetency, or untrustworthiness constituting dishonest, fraudulent, or improper dealings within 10 days of receipt of the notice then it's good. This is an acknowledgement receipt, which confirms that the complaint has been received and that the licensee is aware of the proceedings.In the state of California, any licensee has to acknowledge the commission's notice of hearing regarding a complaint of bad faith conduct, incompetency, or untrustworthiness constituting dishonest, fraudulent, or improper dealings within 10 days of receipt of the notice. If the licensee does not acknowledge the receipt of the notice within the stipulated time frame, the commission can revoke or suspend the license of the licensee.In conclusion, the answer is option B which is "Within 10 days of receipt of the notice". This is the required amount of time that a licensee must acknowledge the Commission's notice of hearing regarding a complaint of bad faith conduct, incompetency, or untrustworthiness constituting dishonest, fraudulent, or improper dealings before the Commission suspends or revokes the license.
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In this problem, we study the relationship between the amount of money spent on restaurant meals and household income. Let y = expenditure ($) on restaurant meals per household member in the past quarter Let x-monthly household income (in hundreds of dollars) during the past year. Using data from three-person households (N-2000) we obtain the following least-squares estimates: y = 15.57 + 0.42x
Based on the data from 2000 households, the least-squares estimates suggest a linear relationship between the variables: y = 15.57 + 0.42x.
The given least-squares estimates indicate that the intercept term, 15.57, represents the estimated expenditure on restaurant meals per household member when the monthly household income is zero. However, since it is not practically possible to have zero income, this value is not meaningful in real-world scenarios.
The estimated coefficient of 0.42 indicates that for every increase of one hundred dollars in monthly household income, the expenditure on restaurant meals per household member increases by 0.42 dollars. This positive coefficient suggests a positive correlation between income and restaurant meal expenditure, implying that as household income rises, people tend to spend more on dining out.
It is important to note that the given estimates are specific to three-person households and may not be generalized to households of different sizes. Additionally, other factors not considered in this model, such as personal preferences, cultural differences, and geographic location, may also influence restaurant meal expenditure. Therefore, while the linear relationship provides insights into the association between income variable and dining out, it should be interpreted cautiously and in conjunction with other relevant factors for a comprehensive understanding.
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Rania runs a small but very successful bakery shop inside a busy mall in Oshawa. Her husband Ryan and herself run this bakery shop 7 days a week from 11 am to 8 pm. Other shop owners at the mall love their bakery items and have become loyal customers of their business. Sarah, who runs a chain of coffee shops in several malls, including theirs, have approached them with an idea to expand their business to other malls in the area. She claims to have a lot of connections with financial intermediaries who may be able to help fund the expansion. In fact, she promises to share with Rania, the financial information and business proposal prepared by one of her competitors who successfully applied for a loan few months ago. According to her, she is best friends with Nadia who is working for a local bank as a manager and can help them get the required amount even without any documentation. She is asking for a promise to pay 5% of the loan amount to her as "fees" for her services.
a. Given your understanding of the business ethics, what is your advice to Rania and her husband? Explain with reference to the moral leadership concept that we discussed in class.
b. Relate the above scenario using the front-page, personal gains, and the good night’s sleep tests. What are your thoughts and decisions in the given context?
2 pages fresh answer please
a. My advice to Rania and her husband is to prioritize ethical conduct, avoid sharing confidential information, and follow proper procedures for obtaining loans.
b. Analyzing the scenario using the front-page, personal gains, and good night's sleep tests reveals ethical concerns, and they should decline the offer and explore ethical alternatives for business expansion.
a. My advice to Rania and her husband would be to exercise caution and prioritize ethical conduct in their decision-making. The scenario presented raises several ethical concerns. Firstly, accepting Sarah's offer to share the financial information and business proposal of a competitor obtained through questionable means violates the principles of fair competition and confidentiality. Rania and her husband should adhere to ethical standards by respecting the intellectual property and confidential information of others.
Secondly, the promise of obtaining a loan without proper documentation and through personal connections raises red flags in terms of transparency and integrity. Rania and her husband should prioritize conducting business in a legal and ethical manner, following the necessary procedures for obtaining loans and financial support.
From the perspective of moral leadership, it is crucial for Rania and her husband to demonstrate ethical behavior and set a positive example for their employees and the business community. They should consider the long-term consequences of their actions, not only for their own business but also for their reputation and the trust they have built with their loyal customers and stakeholders.
b. When analyzing the scenario using the front-page, personal gains, and the good night's sleep tests, it becomes clear that the proposed actions are ethically questionable. The front-page test examines whether an action can withstand public scrutiny and if it aligns with ethical norms and values. Rania and her husband sharing confidential information and engaging in unethical practices with Sarah would likely be viewed negatively if exposed to the public.
The personal gains test assesses whether the decision is driven by personal benefits or the greater good. In this case, Sarah's offer of financial assistance comes with a 5% fee, indicating a personal gain motive rather than a genuine intention to help Rania and her husband succeed. Engaging in such a transaction may compromise their integrity and harm their business in the long run.
The good night's sleep test refers to making decisions that allow individuals to sleep soundly, free from guilt or remorse. Rania and her husband should consider whether accepting Sarah's offer aligns with their personal values and ethical standards. If they have doubts or feel uneasy about the proposed actions, it is likely an indication that they should decline the offer and explore alternative, ethical avenues for business expansion.
In summary, Rania and her husband should prioritize ethical conduct, maintain integrity, and consider the potential consequences and impact on their reputation before making any decisions in this scenario.
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The balance sheet of ABC bank starts with an allowance for loan losses of $2.60 million. During the year, ABC bank writes off worthless loans amounting to $1.62 million, recovers $0.40 million on loans previously written-off, and charges current income for $2.79 million provisions for loan losses.
You are required to calculate the end of year allowance for loan losses.
To calculate the end-of-year allowance for loan losses, we need to consider the changes that occurred during the year:
Starting allowance for loan losses: $2.60 million
Write-offs of worthless loans: -$1.62 million
Recoveries on previously written-off loans: +$0.40 million
Provisions for loan losses: -$2.79 million
$2.60 million - $1.62 million + $0.40 million - $2.79 million = -$1.41 million
The result is -$1.41 million, indicating that the end-of-year allowance for loan losses is a deficit of $1.41 million. This implies that the bank's provisions for loan losses exceeded the recoveries and write-offs during the year, resulting in a decrease in the allowance for loan losses.
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Whats is the the main difference between quality managments and staistical quality control (SPC)
The main difference between quality management and statistical quality control (SPC) lies in their scope and approach.
Quality management is a comprehensive approach that encompasses the entire organization and focuses on establishing processes, systems, and practices to consistently meet or exceed customer expectations. It involves strategic planning, organizational culture, leadership, customer focus, continuous improvement, and other elements to ensure overall quality and customer satisfaction. Quality management aims to integrate quality into every aspect of the organization's operations and involves the participation of all employees.
On the other hand, statistical quality control (SPC) is a specific technique used within the broader framework of quality management. SPC focuses on the statistical analysis and control of processes to detect and prevent variations and defects in production or service delivery. It involves the use of statistical tools and methods, such as control charts, process capability analysis, and hypothesis testing, to monitor and control the quality of products or services. SPC helps organizations identify and address the sources of variability in processes, ensuring that they remain within acceptable limits and meet the desired quality standards.
In summary, quality management is a holistic approach that encompasses all aspects of an organization's operations and aims to establish a culture of quality and continuous improvement. Statistical quality control (SPC) is a specific technique used within quality management to analyze and control process variations using statistical methods and tools.
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exclusions are used in insurance policies for all of the following reasons except
a. to reduce moral hazard
b. to walve policy conditions
c. to eliminate coverage for uninsurable perils
d. to eliminate coverage not needed by typical insureds
exclusions are used in insurance policies for all of the following reasons except b. to waive policy conditions.
Exclusions are used in insurance policies for various reasons, including reducing moral hazard, eliminating coverage for uninsurable perils, and eliminating coverage not needed by typical insureds. However, exclusions are not used to waive policy conditions.
Option a, to reduce moral hazard, refers to the concept of discouraging policyholders from intentionally causing losses or behaving in a way that increases the likelihood of a loss. Exclusions can be used to limit coverage for certain high-risk activities or behaviors.
Option c, to eliminate coverage for uninsurable perils, involves excluding coverage for events or circumstances that are deemed to be uninsurable due to their unpredictable or catastrophic nature. Examples may include war, nuclear incidents, or acts of terrorism.
Option d, to eliminate coverage not needed by typical insureds, allows insurance policies to be tailored to the needs and risks of the specific target market. Exclusions can be used to exclude coverage for risks or events that are not relevant or necessary for most policyholders.
In conclusion, exclusions in insurance policies serve various purposes, including reducing moral hazard, eliminating coverage for uninsurable perils, and eliminating coverage not needed by typical insureds. However, exclusions are not used to waive policy conditions.
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As an HR manager, you are required to present and analyze in detail your company's recruitment and selection process. Your company is located in Beirut downtown and is considered competitive in the market. Then assess the recruitment process. Requirements: Your job analysis showed that you should hire a Digital Marketing Manager. Recommendations: Use a PowerPoint presentation in your work. Be creative Do not use too much text Use facts.
As an HR manager, I understand the importance of presenting and analyzing our company's recruitment and selection process for the position of Digital Marketing Manager. In this PowerPoint presentation, I will provide an overview of our recruitment process and assess its effectiveness in attracting top talent for our competitive company located in Beirut downtown.
Slide 1: Introduction
Introduce the topic: "Recruitment and Selection Process for Digital Marketing Manager"
Include the company logo and a visually appealing background image
Slide 2: Job Analysis
Explain the importance of conducting a job analysis for the Digital Marketing Manager role
Highlight the key responsibilities, qualifications, and skills required for the position
Provide an overview of the job market trends and demand for digital marketing professionals
Slide 3: Sourcing Strategies
Discuss the various sourcing strategies used to attract qualified candidates
Mention both internal and external sourcing methods such as employee referrals, job boards, social media, and professional networking platforms
Highlight any unique or innovative sourcing approaches specific to our company
Slide 4: Job Advertisement
Showcase examples of captivating and informative job advertisements used to attract potential candidates
Highlight key elements of a well-crafted job advertisement, including job title, responsibilities, qualifications, and company culture
Emphasize the importance of a compelling job description to attract the right talent
Slide 5: Application and Screening
Explain the application and screening process for the Digital Marketing Manager position
Outline the steps involved in reviewing applications, shortlisting candidates, and conducting initial screenings
Mention any specific tools or software used to streamline the screening process
Slide 6: Interview Process
Describe the interview process for the Digital Marketing Manager position
Discuss the types of interviews conducted, such as behavioral, technical, and panel interviews
Highlight the involvement of relevant stakeholders, such as department heads or senior management, in the interview process
Slide 7: Assessment and Evaluation
Explain the assessment and evaluation methods used to assess candidates' suitability for the role
Discuss the use of tests, assignments, or case studies to evaluate candidates' skills and abilities
Highlight the importance of fairness and objectivity in the assessment process
Slide 8: Selection and Offer
Discuss the final selection process and the criteria used to make the hiring decision
Mention any background checks or reference checks conducted before making the offer
Highlight the negotiation and offer process for the selected candidate
Slide 9: Conclusion
Summarize the key points discussed throughout the presentation
Emphasize the effectiveness of our recruitment and selection process in attracting top talent
Express confidence in our ability to find a highly qualified Digital Marketing Manager for our competitive company
Slide 10: Questions and Answers
Provide an opportunity for the audience to ask questions and address any concerns they may have
Be prepared to provide detailed responses and clarify any aspects of the recruitment and selection process
Note: Remember to use visually appealing graphics, charts, and images throughout the presentation to engage the audience and make it visually stimulating. Limit the amount of text on each slide to key points and use bullet points or infographics to convey information effectively.
By presenting this detailed analysis of our recruitment and selection process for the Digital Marketing Manager position, we aim to showcase our commitment to attracting and selecting the best talent for our competitive company located in Beirut downtown.
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The beta of Brad Clooney Inc. stock is 0.93. Current annual risk-free rate and market risk premium is 3.18 percent and 7.60 percent, respectively. The company's cost of common stock is ___
O 6.89% O 8.77% O 10.25% O 7.09% O 7.29%
The beta of Brad Clooney Inc. stock is 0.93. The company's cost of common stock can be calculated using the Capital Asset Pricing Model (CAPM) formula which is option is C) 10.25%.
Cost of common stock = Risk-free rate + (Beta × Market risk premium)
Given that the beta of Brad Clooney Inc. stock is 0.93,
the current annual risk-free rate is 3.18 percent and
the market risk premium is 7.60 percent.
Substituting these values into the CAPM formula, we have:
Cost of common stock = 3.18% + (0.93 × 7.60%)
= 3.18% + 7.068%
= 10.248% ≈ 10.25%
Hence, the company's cost of common stock is approximately 10.25%.
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A stock has a beta of 1.66 and an expected return of 33.7%. The T-bill rate is 6.1%. Calculate the portfolio beta if the expected return of a portfolio of the two assets is 11.8%.
To calculate the portfolio beta, we need to use the following formula: Portfolio Beta = (Weight of Asset 1 * Beta of Asset 1) + (Weight of Asset 2 * Beta of Asset 2)
Given: Beta of the stock = 1.66 Expected return of the stock = 33.7% T-bill rate = 6.1% Expected return of the portfolio = 11.8%. Let's assume that the other asset in the portfolio has a beta of 1 (since its beta is not provided). We can solve for the weight of each asset using the formula for expected return: Expected return of the portfolio = (Weight of Asset 1 * Expected return of Asset 1) + (Weight of Asset 2 * Expected return of Asset 2). 11.8% = (Weight of Asset 1 * 33.7%) + (Weight of Asset 2 * 6.1%) We can rearrange the equation to solve for the weight of Asset 2: Weight of Asset 2 = (11.8% - (Weight of Asset 1 * 33.7%)) / 6.1%. Now we can substitute the values into the portfolio beta formula: Portfolio Beta = (Weight of Asset 1 * Beta of Asset 1) + (Weight of Asset 2 * Beta of Asset 2) = (Weight of Asset 1 * 1.66) + ((11.8% - (Weight of Asset 1 * 33.7%)) / 6.1%) By solving this equation, we can find the portfolio beta.
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Required information (The following information applies to the questions displayed below.] Suzuki Supply reports the following amounts at the end of 2021 (before adjustment). Credit Sales for 2021 $260,000 55,000 1,100 Accounts Receivable, December 31, 2021 Allowance for Uncollectible Accounts, December 31, 2021 (Credit) Required: 1. Record the adjusting entry for uncollectible accounts using the percentage-of-receivables method. Suzuki estimates 12 % of receivables will not be collected.
The adjusting entry for uncollectible accounts using the percentage-of-receivables method is: Bad Debt Expense $6,600Allowance for Doubtful Accounts $6,600
The required information and the adjusting entry for uncollectible accounts using the percentage-of-receivables method is given below.
Suzuki Supply reports the following amounts at the end of 2021 (before adjustment):Credit Sales for 2021 = $260,000
Accounts Receivable, December 31, 2021 = $55,000
Allowance for Uncollectible Accounts, December 31, 2021 (Credit) = $1,100
Required: Record the adjusting entry for uncollectible accounts using the percentage-of-receivables method. Suzuki estimates 12 % of receivables will not be collected. Adjusting Entry: To record the allowance for uncollectible accounts, we need to debit the bad debt expense and credit the allowance for doubtful accounts.
Adjusting entry for uncollectible accounts can be calculated as follows:
Bad Debt Expense = Accounts Receivable * Percentage of uncollectible accounts
Allowance for Doubtful Accounts = Accounts Receivable - Bad Debt Expense Account
Debit side Bad Debt Expense = 55,000 * 12% = $6,600
Credit side Allowance for Doubtful Accounts = 55,000 - 6,600 = $48,400
Therefore, the adjusting entry for uncollectible accounts using the percentage-of-receivables method is: Bad Debt Expense $6,600Allowance for Doubtful Accounts $6,600.
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Three industries (1, 2 and 3) emit two types of pollutants into a river. Due to pressure from the environmentalists to reduce the pollution in the river, waste from each industry is to be processed. It is found that it costs £15 to process a ton of Industry 1 waste and for each ton processed the amount of pollutant 1 reduces by 0.10 ton and for pollutant 2 by 0.45 ton.
For Industry 2, it costs £10 to process a ton of waste, and each ton processed will reduce the amount of pollutant 1 by 0.20 ton and the amount of pollutant 2 by 0.25 ton. It costs £20 to process a ton of Industry 3 waste, and each ton processed will reduce the amount of pollutant 1 by 0.40 ton and the amount of pollutant 2 by 0.30 ton. The government department wants to reduce the amount of pollutant 1 in the river by at least 30 tons and the amount of pollutant 2 in the river by at least 40 tons. Formulate a LP that will minimize the cost of reducing pollution by the desired amounts.
Formulate the linear programming model (only the model is expected and you do not have to solve it).
Linear Programming (LP) is used to optimize the problem constraints in a mathematical way that considers different variables. Formulate the LP that will minimize the cost of reducing pollution by the desired amounts.The given information can be tabulated as follows:
The table provided displays the amount of waste processed in tons by each of three industries, along with the associated cost per ton and pollution reduction for two different pollutants. Let the amount of waste processed by each industry be represented by x1, x2, and x3.
The objective of this problem is to minimize the cost of reducing pollution by the desired amount. This can be represented mathematically as minimizing the function Z = 15x1 + 10x2 + 20x3.
Two pollution reduction constraints are given for pollutant 1 and pollutant 2. The pollution reduction constraint for pollutant 1 is 0.1x1 + 0.2x2 + 0.4x3 ≥ 30, and for pollutant 2 it is 0.45x1 + 0.25x2 + 0.3x3 ≥ 40.
In addition to the pollution reduction constraints, there is a non-negativity constraint that requires the values of x1, x2, and x3 to be greater than or equal to 0.
Thus, the linear program can be expressed as follows:
Minimize, Z = 15x1 + 10x2 + 20x3
Subject to,
0.1x1 + 0.2x2 + 0.4x3 ≥ 30
0.45x1 + 0.25x2 + 0.3x3 ≥ 40
x1, x2, x3 ≥ 0
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Which of the following statements regarding the power held by an individual in an interpersonal relationship is false?
a. Sales managers who wish to become effective leaders should develop referent and expert power bases. b. Coercive power is based on a belief that one party can remove rewards and provide punishment to affect behavior. c. The possession and use of power will have a major impact on the quality of leadership achieved by a sales manager. d. An individual's objective assessment of where the power lies will determine the effects of power in that interpersonal relationship. e. The power held by an individual in an interpersonal relationship can be one or more of five types.
The statement that is not true regarding the power held by an individual in an interpersonal relationship is - An individual's objective assessment of where the power lies will determine the effects of power in that interpersonal relationship. Thus, Option D is correct.
A social tie, connection, or cooperation between two or further people is appertained to as an interpersonal relationship. They differ in their levels of closeness, honesty, duration, reciprocity, and power dynamics.
Family, kinship, friendship, love, marriage, commerce, employment, clubs, neighborhoods, ethical ideals, support, and solidarity are the fundamental themes or purposes of interpersonal relationships. Interpersonal relationships, which are the foundation of social groups and societies, may be governed by law, custom, or mutual agreement.
Therefore, option D is the correct answer.
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Which line items of the budgeted balance sheet are calculated based on operating budgets?
A
Finished goods inventory, raw materials inventory, buildings and equipment, and retained earnings.
B
Cash, accounts receivable, accounts payable, and buildings and equipment.
C
Accounts receivable, accounts payable, retained earnings, and accumulated depreciation.
D
Finished goods inventory, raw materials inventory, and retained earnings.
The correct option is B. The line items of the budgeted balance sheet that are calculated based on operating budgets are cash, accounts receivable, accounts payable, and buildings and equipment.
Budgeted balance sheet The budgeted balance sheet comprises all the assets and liabilities of the company and provides a summary of the company's financial position at a specific time. It is calculated based on several factors such as capital expenditures, sales, taxes, etc.
Accounts payable: This refers to the money that the company owes to its suppliers and creditors. It is calculated based on the credit purchases that are made by the company. Buildings and equipment: This refers to the fixed assets that are used in the business operations. It is calculated based on the depreciation of the assets over time.
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