Suppose a firm's short-run production function is given by Q = 15L^0.5. What is the Marginal Product (MP) of the fourth worker?

If a company fails to make an adjusting entry to estimate doubtful accounts, then this error affects the income statement and balance sheet.

Here is how: Income statement The failure to make an adjusting entry to estimate doubtful accounts will result in an understatement of expenses and overstatement of net income. This is because the allowance for doubtful accounts is not recognized in the income statement and the expense is not recognized. As a result, the net income will be overstated. Balance sheet The accounts receivable will be overstated and the allowance for doubtful accounts will be understated. Consequently, the net amount of accounts receivable will be overstated. The effect will result in an overstatement of assets on the balance sheet. Additionally, the stockholders' equity will be overstated by the same amount because the income is overstated. The effect will result in an overstatement of equity. The failure to make an adjusting entry to estimate doubtful accounts results in an overstatement of assets, equity, and net income. It will, however, not affect the cash flows in the statement of cash flows.

To know more about accounts visit:

brainly.com/question/13685733

#SPJ11

The manufacturing needs to produce 240 products weekly.8 work hours per day. The time taken by Machine A to finalize a product = 24 minutes. The time taken by Machine B to finalize a product = 36 minutes. The time taken by Assembly Line C to finalize a product = 12 minutes.

To minimize Muda and design its flow, let us calculate the total number of minutes required to manufacture 240 products weekly. Total number of products needed to be produced per day = 240 / 5 = 48 Number of products produced in an hour = 48 / 8 = 6The total number of minutes required to finalize a product using Machine A = 24 minutes. The total number of minutes required to finalize a product using Machine B = 36 minutes. The total number of minutes required to finalize a product using Assembly Line C = 12 minutes.

Using machine A, number of products that can be produced in 1 hour = 60 / 24 = 2.5Using machine B, number of products that can be produced in 1 hour production = 60 / 36 = 1.67Using assembly line C, number of products that can be produced in 1 hour = 60 / 12 = 5Thus, to minimize Muda, the company should use Assembly line C to finalize the products. The company should invest in 5 Assembly line C to produce 240 products weekly. Design of the flow: Step 1: Manufacture the product parts in one location. Step 2: Assemble the parts in a separate location. Step 3: Use Assembly Line C to finalize the products.

To know more about production refer to:

https://brainly.com/question/16755022

#SPJ11

an increase in households' autonomous consumption would stimulate economic activity, leading to higher real GDP and tax revenue.

1. The expression for total demand, Z:

Z = C + I + G

2. The equilibrium level of real GDP:

In equilibrium, total demand equals real GDP. Therefore, we have:

Y = Z

Y = C + I + G

To calculate the equilibrium level of real GDP, we substitute the given values into the equation and solve for Y:

Y = (0.65Y + 370) + 700 + 200

Y = 0.65Y + 1270

0.35Y = 1270

Y = 1270 / 0.35

3. The equilibrium level of consumer expenditure:

To find the equilibrium level of consumer expenditure, we substitute the equilibrium level of real GDP (Y) into the consumption function:

C = C1Y + CO

C = 0.65Y + 370

4. The equilibrium level of saving:

Saving (S) is the difference between real GDP (Y) and consumer expenditure (C):

S = Y - C

5. The investment multiplier:

The investment multiplier (k) represents the change in equilibrium real GDP resulting from a change in investment. It is given by the formula:

k = 1 / (1 - MPC)

where MPC is the marginal propensity to consume.

6. The government's budget deficit (GBD):

The government's budget deficit is the difference between government expenditure (G) and tax revenue (T):

GBD = G - T

7. Leaks and injections:

In the circular flow of income and expenditure, leakages occur when income is saved, taxed, or spent on imports. Injections occur when investment, government expenditure, or exports are introduced into the economy. The sum of leakages should equal the sum of injections for the circular flow to be in balance.

8. Impact of an increase in households' autonomous consumption on the government budget deficit:

(a) An increase in households' autonomous consumption would lead to higher consumer expenditure (C). This increase in C would result in a higher level of real GDP (Y) in equilibrium. As a result, tax revenue (T) would also increase since it is a fixed proportion of income. With higher tax revenue, the government's budget deficit (GBD) would decrease, assuming government expenditure (G) remains unchanged.

an increase in households' autonomous consumption would stimulate economic activity, leading to higher real GDP and tax revenue. This would have a positive impact on the government's budget deficit, reducing the deficit or even potentially resulting in a budget surplus.

To know more about consumption follow the link:

https://brainly.com/question/30623688

#SPJ11

Considering Gary's current total wealth of only $80 and his belief that the probability of winning the race is 0.2, he concludes that Option 1 is the correct choice. By taking the bet, he anticipates a reduction in his expected utility.

Donna proposes a bet of $52 on the outcome of a boat race, where if Gary's boat wins, Donna will give him $52. On the other hand, if Gary's boat does not win the race, he would be required to give Donna $52.

Gary's utility function is expressed as p₁x² + 2x², where p₁ and p₂ represent the probabilities of events 1 and 2, respectively. Additionally, x₁ and x₂ denote Gary's wealth if events 1 and 2 occur, respectively.

The expected utility can be defined as a measure of the amount of satisfaction or welfare that a person derives from consuming or achieving certain goals under conditions of uncertainty.

Gary's utility function indicates that he is risk-averse since the marginal utility of wealth is decreasing.

Using the utility function, we can determine Gary's expected utility as follows:

Gary's utility if he does not take the bet is

(0.8) [p₁(80)² + (1-p₁)(80)²] + (0.2) [p₂(80-52)² + (1-p₂)(80+52)²]

Gary's utility if he takes the bet and his boat wins is

(0.8) [p₁(80+52)² + (1-p₁)(80-52)²] + (0.2) [p₂(80+52-52)² + (1-p₂)(80+52+52)²]

Gary's utility if he takes the bet and his boat does not win is

(0.8) [p₁(80-52)² + (1-p₁)(80+52)²] + (0.2) [p₂(80-52-52)² + (1-p₂)(80-52+52)²]

Hence, choosing to accept the bet would result in a decrease in Gary's expected utility, making option 1 the correct choice.

Learn more about utility at: https://brainly.com/question/14729557

#SPJ11

The role of a marketing assistant in an electric bike company is to help in the creation, execution, and analysis of marketing campaigns and strategies. They offer support in areas such as social media management, content creation, market research, and event coordination.

The marketing assistant plays a crucial role in achieving the goals and objectives of the company's marketing plans by working closely with the marketing manager. The marketing assistant will contribute significantly to the success of the company's sales campaigns.The differentiation and growth strategy of the electric bike company will have an impact on the total reward package for the marketing assistant. A differentiation strategy is an approach where a company develops its product or services to make them unique, attractive, and stand out in the market. This strategy is essential in providing value to the customers, which leads to customer loyalty and satisfaction. For instance, if the electric bike company focuses on creating unique electric bikes, they will require marketing assistant that will understand the uniqueness of their products and create strategies that will highlight them in the market.

The differentiation strategy will mean that the company will require a marketing assistant that has the skills and creativity to drive the campaign. The total reward package for the marketing assistant will be reflective of their skills and creativity.Growth strategy, on the other hand, involves the company expanding its products or services. If the electric bike company adopts a growth strategy, it will require a marketing assistant that is knowledgeable and experienced in marketing to help implement the expansion strategies. For example, the marketing assistant may be required to identify new market segments or even new geographical locations for the electric bike company's products. The total reward package will be reflective of the marketing assistant's ability to expand the market, which is vital in driving sales and revenue for the company.In conclusion, the differentiation and growth strategy of the electric bike company will affect the total reward package for the marketing assistant. A differentiation strategy will require a marketing assistant with the skills and creativity to drive the campaign, while a growth strategy will require a marketing assistant that is knowledgeable and experienced in marketing to help implement the expansion strategies.

To know more about marketing visit:

https://brainly.com/question/32094123

#SPJ11

The iron input in the production of engines would be considered a flow if it is measured in any of the options presented: A. years, B. months, C. periods, or D. days. Therefore, the correct answer is E. all of the above.

In economics, a flow refers to a variable measured over a period of time. The input of iron in the production of engines is a flow because it is a continuous process that occurs over time. The specific measurement unit (years, months, periods, or days) determines the granularity of the flow. Whether the iron input is measured in years, months, periods, or days, it still represents a continuous flow of input over a specific time period. Hence, all the options provided (A, B, C, and D) correctly describe the iron input as a flow measurement.

To learn more about iron input click here : brainly.com/question/31842080

#SPJ11

One of the most popular and lavish casinos and resorts in the world is the Bellagio in Las Vegas. It hosts many events, ranging from conferences, meetings, and trade shows to entertainment events and amusement rides. Among them, a particular event that stands out is the annual Bellagio Conservatory Holiday Display.

This event is held every year at the Bellagio and is a delight to witness.The Bellagio Conservatory and Botanical Gardens are one of the most exquisite and scenic spots in Las Vegas. During the holiday season, the Bellagio transforms this space into an enchanted winter wonderland. Thousands of vibrant lights and decorations are used to create a festive atmosphere and brighten up the holiday season. The holiday display features a massive Christmas tree, larger-than-life ornaments, snowflakes, and a stunning flower-filled carousel, which is the centerpiece of the display.A team of experts and designers works tirelessly to create this breathtaking and captivating display. The event is publicized on various social media platforms and the Bellagio's website, and it usually runs from early December through the first week of January. Reviews and reports about the event are typically positive, with many people calling it one of the best holiday displays in the country.

In conclusion, the Bellagio Conservatory Holiday Display is a spectacular event that has become a holiday tradition for many Las Vegas residents and visitors. The Bellagio takes pride in creating a beautiful and magical space that is free for everyone to enjoy during the holiday season.

To know more about entertainment events visit:-

https://brainly.com/question/28655587

#SPJ11

To sustain rapid company growth in the E-commerce industry, a strategic manager can implement tactics such as expanding product offerings, utilizing social media and customer reviews, and optimizing the website.


As a strategic manager in the E-commerce industry, there are several ways to sustain rapid company growth. Firstly, expanding the product offerings and diversifying the inventory is a great way to attract more customers and retain existing ones. This can include introducing new product categories, offering customization options, or partnering with other companies to offer complementary products.

Secondly, utilizing social media platforms and customer reviews is an effective way to increase brand visibility and credibility. Social media can be used to showcase new products, provide customer service, and engage with customers. Customer reviews can also help build trust with potential customers and provide valuable feedback for improving the business.

Lastly, optimizing the website for a seamless user experience can help increase conversions and reduce cart abandonment rates. This can include improving website speed, simplifying the checkout process, and offering multiple payment options. By implementing these tactics, a strategic manager can sustain rapid company growth in the E-commerce industry.

To know more about the E-commerce industry visit:

https://brainly.com/question/14272248

#SPJ11

Airbus's management function of leadership is focused on creating effective, long-term strategies that enable the company to meet its goals and objectives.

The management operates by ensuring that all employees work towards a common goal and vision, and this is achieved through a number of key leadership practices that have been established over time.

Leadership in Airbus is characterized by a number of qualities and behaviors that are demonstrated by its management team.

These include a strong focus on results and performance, a commitment to employee development and training, and a willingness to take calculated risks and explore new ideas and technologies.

The company's management also encourages an open and transparent communication style that fosters trust and collaboration among all employees.

The leadership at Airbus also embraces the principles of lean management, which emphasizes the elimination of waste and the continuous improvement of processes and systems.

This approach has helped the company to reduce costs, improve quality, and increase efficiency in all areas of its operations.

Know more about leadership here:

https://brainly.com/question/1232764

#SPJ11

ESG factors are an important factor for the identification of environmental, social, and governance factors that impact businesses. However, ESG metrics also have some weaknesses to overcome. One of the weaknesses of ESG metrics is the lack of standardization, making it difficult to compare ESG scores across companies.

Another weakness is the lack of transparency and clarity in ESG reporting, which makes it difficult for investors to fully assess a company's ESG performance. The third weakness of ESG metrics is that they can be manipulated by companies to make themselves look better than they are. Companies can choose to report on only positive ESG performance indicators, rather than providing a comprehensive view of their ESG performance. Finally, there is a lack of materiality in ESG metrics.

ESG metrics may not be relevant to all companies, and certain ESG issues may be more important for certain industries or businesses. Improvements can be made in the future through increased standardization of ESG metrics so that ESG scores can be compared across companies. This can be achieved by developing a clear set of standards and guidelines for ESG reporting.

Improving the transparency and clarity of ESG reporting is also important. Companies should be required to provide a comprehensive view of their ESG performance, including negative performance indicators. Regulatory oversight is necessary to ensure that ESG metrics are not manipulated by companies. Finally, there needs to be a greater emphasis on materiality in ESG metrics. ESG metrics should be relevant to the industry and business of the company being evaluated.

To know more about ESG Factors visit:

https://brainly.com/question/32537450

#SPJ11

In the AS-AD (Aggregate Supply-Aggregate Demand) diagram, a decrease in government spending on energy plants and national defense would result in a leftward shift of the aggregate demand (AD) curve. This shift occurs because reduced government spending leads to a decrease in overall expenditure in the economy.

In the short run, the decrease in government spending would lead to several effects. Firstly, the price level would decrease due to the lower overall demand in the economy. With less spending, businesses lower their prices to attract customers, resulting in lower inflation rates.

Secondly, the decrease in aggregate demand would lead to a contraction in real GDP or output. As businesses receive fewer orders and demand for goods and services decreases, they would reduce production and employment levels. This contraction in output would result in higher unemployment rates as workers are laid off.

Lastly, the decrease in government spending would likely lead to lower interest rates. Reduced demand for borrowing by the government would result in a decrease in the overall demand for loanable funds in the economy. This decreased demand for funds would push interest rates downward, stimulating private sector investment and consumption.

It is important to note that these effects are based on the assumption that other factors in the economy remain constant, and the analysis is limited to the short run. In the long run, the economy may adjust and move towards a new equilibrium, potentially different from the initial long-run equilibrium.

To know more about economy click this link-

https://brainly.com/question/30131108

#SPJ11

The "first-mover" strategy carries higher risks and costs but can lead to significant rewards if successful. On the other hand, the "first-follower" strategy allows companies to learn from the first-mover's mistakes and capitalize on their innovations. It enables them to enter the market with refined products and potentially gain market share.

Company X, a technology giant, adopted the "first-mover" strategy by introducing a groundbreaking product line to the market. They recognized the potential of emerging technologies and aimed to establish themselves as industry pioneers. This strategy was chosen to gain a competitive advantage by capturing market share and setting industry standards. The results were highly successful, with Company X becoming synonymous with innovation and enjoying early market dominance.

Company Y, a well-known consumer goods manufacturer, pursued the "first-follower" strategy. Instead of being the first to introduce new products, they closely monitored market trends and competitor innovations. This strategy was chosen to leverage the first-mover's investments and learn from their experiences. By entering the market as a follower, Company Y could evaluate consumer response and make improvements to the existing product offerings. The results were positive, with Company Y gaining market share through effective product refinement and capitalizing on the first-mover's groundwork.

In my professional opinion, both strategies can be effective depending on the industry and market dynamics. The "first-mover" strategy carries higher risks and costs but can lead to significant rewards if successful. On the other hand, the "first-follower" strategy allows companies to learn from the first-mover's mistakes and capitalize on their innovations. It enables them to enter the market with refined products and potentially gain market share. The choice of strategy should be based on a careful evaluation of industry conditions, competitive landscape, and the company's resources and capabilities.

To learn more about first-mover" strategy click here

brainly.com/question/29379822

#SPJ11

The leverage-indifference EBIT is $7,150,000. Round your answer to the dollar b. The leverage-indifference EPS is $3.38. Round your answer to the cent.

The solution to the given problem is provided as follows: Calculation of leverage indifference EBIT. We can use the following formula to calculate leverage indifference EBIT:EBIT-U-(1-t)*r*D = EBIT-L-0Where;EBIT-U = Earnings before interest and taxes un-levered U = Unlevered EBIT-L = Earnings before interest and taxes levered L = Levered U = L + (1-t)*r*D / U Where; L = (6,000,000*$50) = $300,000,000r = 6%t = 38%D = $8,500,000. Therefore, U = $7,150,000Therefore, the leverage-indifference EBIT is $7,150,000. Round your answer to the dollar.

Calculation of leverage indifference EPS. We can use the following formula to calculate leverage indifference EPS:EPS-L = EPS-U + (EPS-U - EPS-U/ (1+t)*r*D)*D/L Where; EPS-L = Earnings per share levered EPS-U = Earnings per share un-levered D = Debt outstanding L = Equity outstanding. EPS-U = EBIT-U / No. of shares outstanding. EPS-U = $7,150,000 / 6,000,000EPS-U = $1.19 per share. Therefore, EPS-L = $1.19 + ($1.19 - $1.19/ (1+38%)*6%*$8,500,000/$300,000,000)*($8,500,000/$300,000,000) / 6,000,000EPS-L = $3.38Therefore, the leverage-indifference EPS is $3.38. Round your answer to the cent.

Hence, the calculation of leverage indifference EBIT is $7,150,000 and the calculation of leverage indifference EPS is $3.38.

To know more about EBIT visit:

brainly.com/question/30760774

#SPJ11

A five-year career development plan should include objectives that are specific, measurable, and attainable.

A five-year career development plan should be a guide to an individual's career progress in the next five years. Career goals for the next five years My five-year career development plan includes taking courses and obtaining certificates in project management. Obtaining a master's degree in project management is the first step in my plan.

The certification is the PMP (Project Management Professional). The PMP certificate will take six months to complete, and it costs $5000. Obtaining this certification is something I intend to do in my second year. Skills and experience needed The PMP certification is the prerequisite for the Senior Project Manager job. The Senior Project Manager position would be my dream job for the next five years.

To know more about development visit:

https://brainly.com/question/28423077

#SPJ11

Sally can claim $6,164 of the property taxes as a deduction while Kate can claim $2,836 of the property taxes as a deduction.

In the year that real property is sold, property taxes must be allocated between the buyer and the seller according to the number of days in the year that each owned the property. In this case, Sally owned the property for the first 67 days of the year, and Kate owned the property for the remaining 298 days of the year.The property taxes are $9,000, and we can use the following proportion to calculate how much of the property taxes each party can deduct:$9,000 / 365 days = $24.66 per day

Sally owned the property for 67 days, so she can claim a deduction for:$24.66 per day × 67 days = $1,653.22 ≈ $1,653

Kate owned the property for 298 days, so she can claim a deduction for:$24.66 per day × 298 days = $7,357.68 ≈ $7,358

Thus, Sally can claim $1,653 of the property taxes as a deduction, and Kate can claim $7,358 of the property taxes as a deduction. However, Kate paid the entire $9,000 in property taxes on October 1, 2021, so she is entitled to deduct the full $2,836 of property taxes that she paid but Sally cannot deduct the amount paid by Kate.

To know more about deduction  visit :-

https://brainly.com/question/29756791

#SPJ11

1. It appears that all of the firms involved with producing green energy devices such as solar cells, wind power and high-speed bullet trains all need government tax breaks and subsidies to survive.

Billions of taxpayer dollars are given to such firms every year. Conclusion: These tax breaks and subsidies for these new technologies always guarantee more efficiency, innovation, and lower costs to consumers. FALSE2. The marginal product per worker (output) will always increase when there are cuts in the "explicit" costs of production, overhead, and administrative expenses. There has always been a strong correlation between these two factors. FALSE3. From 1995 to 2007 the U.S. federal government (CRA Law of 1995) forced banks to lower their standards on credit and income so that they could make more sub-prime mortgage loans to those who couldn’t qualify for traditional home loans. The result was that millions of people with bad credit, low income, and no savings were able to buy homes. Conclusion: This "easy financing" helped to push up home prices during this time. TRUE4. Which formula below best describes human behavior? Multiple Choice.a. E > 1b. MB = MCc. MC = MRd. E = 1The correct answer is B. MB = MCExplanation:MB = MC is the formula that best describes human behavior. The concept of marginal benefit (MB) is used in economics to describe the additional benefit of consuming one more unit of a good or service. Marginal Cost (MC) is the cost of producing one more unit of a good or service. In order to maximize utility or profit, people usually choose an output level where MB = MC.

To know more about green energy visit:

https://brainly.com/question/871722

#SPJ11

1. It appears that all of the firms involved with producing green energy devices such as solar cells, wind power. And high-speed bullet trains all need government tax breaks and subsidies to survive.

Billions of taxpayer dollars are given to such firms every year. Conclusion: These tax breaks and subsidies for these new technologies always guarantee more efficiency, innovation, and lower costs to consumers. This statement is true.

2. The marginal product per worker (output) will always increase when there are cuts in the "explicit" costs of production, overhead, and administrative expenses. There has always been a strong correlation between these two factors. This statement is false.

3. From 1995 to 2007, the U.S. federal government (CRA Law of 1995) forced banks to lower their standards on credit and income so that they could make more sub-prime mortgage loans to those who couldn’t qualify for traditional home loans. The result was that millions of people with bad credit, low income, and no savings were able to buy homes. Conclusion: This "easy financing" helped to push up home prices during this time. This statement is true.

4. The formula that best describes human behavior is option (a) E > 1. This means that when there is an economic incentive, people will act on it. This formula is also known as the profit maximization formula.

To know more about marginal product, visit ;

https://brainly.com/question/32572267

#SPJ11

The maxi-max decision is to open a medium-sized shop, as it has the highest potential payoff of 100,000.

The maxi-min decision is to open a small shop, as it has the highest assured payoff of 25,000.

The decision would be to open a small shop, as it has the highest expected value of 59,000.

a) The maxi-max decision (optimistic) is to choose the option with the highest possible payoff regardless of the probabilities. In this case, the maximum payoff for each option is:

Small shop: 75,000 (good market)

Medium-sized shop: 100,000 (average market)

No shop: 0 (bad market)

Therefore, the maxi-max decision is to open a medium-sized shop, as it has the highest potential payoff of 100,000.

b) The maxi-min decision (pessimistic) is to choose the option with the highest assured payoff, considering the worst-case scenario. In this case, the minimum payoff for each option is:

Small shop: 25,000 (average market)

Medium-sized shop: 35,000 (bad market)

No shop: 0 (bad market)

Therefore, the maxi-min decision is to open a small shop, as it has the highest assured payoff of 25,000.

c) The EMV (Expected Monetary Value) criterion is used when the decision-making environment is under risk. It involves calculating the expected value for each option by multiplying the payoffs by their corresponding probabilities and then selecting the option with the highest expected value.

For the small shop:

EMV = (0.2 * 75,000) + (0.5 * 25,000) + (0.3 * 40,000) = 59,000

For the medium-sized shop:

EMV = (0.2 * 100,000) + (0.5 * 35,000) + (0.3 * 60,000) = 55,500

For the no shop:

EMV = 0

Therefore, based on the EMV criterion, the decision would be to open a small shop, as it has the highest expected value of 59,000.

To know more about decision analysis, visit:

https://brainly.com/question/18765647

#SPJ11

The fund’s beta and expected rate of return are 0.875 and 10.875%.it is not possible to create a portfolio with a beta of 1.15 using these two stocks.

Beta is a measure of a stock's sensitivity to market fluctuations. The higher the beta, the more a stock's returns will fluctuate in relation to the market.

Suppose you are a money manager of an investment fund.

The fund is invested in three stocks with the following investments and betas:

Stock Investment (in $1,000) Beta C $6,000 1.60 GM $4,000 0.80 ED $6,000 0.20

Beta calculation: Beta of the portfolio = (6,000/16,000) × 1.6 + (4,000/16,000) × 0.8 + (6,000/16,000) × 0.2= 0.6 + 0.2 + 0.075= 0.875

Expected return calculation: Expected return on the portfolio = 0.03 + 0.875(0.09 - 0.03)= 0.03 + 0.07875= 0.10875 or 10.875%

Investing in C and ED only to create a portfolio of beta 1.15:

Step 1: Find the weights for the portfolio - beta of stock C

= 1.6Be - beta of stock ED = 0.2Bp - beta of the portfolio

= 1.15Bp = WcBc + WeBe1.15

= Wc(1.6) + We(0.2)Wc + We = 1

Therefore, Wc = 1 - We Substituting 1 - We for Wc

In equation above:1.15 = (1 - We)(1.6) + We(0.2)1.15 = 1.6 - 1.6We + 0.2We1.15 - 1.6 = -0.4We-0.45 = -0.4We

We = 1.125 (Weight of ED)

Wc = 1 - 1.125 = -0.125 (Weight of C)

It's not possible to have a negative weight for C. Thus, it is not possible to create a portfolio with a beta of 1.15 using these two stocks.

Learn more about the Stocks:

https://brainly.com/question/26128641

$SPJ11

Given that Dylan Howell and Demond Nickles have decided to form a partnership. For the Plan 1 the  net income of  $407,500

To determine the division of net income under each plan, we will calculate the allocation of income based on the given assumptions.

Plan (a) - Equal division:

Under this plan, the net income will be divided equally between Howell and Nickles.

(1) Net income of $420,000:

Howell's share = $420,000 / 2 = $210,000

Nickles' share = $420,000 / 2 = $210,000

(2) Net income of $150,000:

Howell's share = $150,000 / 2 = $75,000

Nickles' share = $150,000 / 2 = $75,000

Plan (b) - Ratio of original investments:

Under this plan, the net income will be divided based on the ratio of their original investments.

Total original investment = $50,000 + $75,000 = $125,000

(1) Net income of $420,000:

Howell's share = ($50,000 / $125,000) * $420,000 = $168,000

Nickles' share = ($75,000 / $125,000) * $420,000 = $252,000

(2) Net income of $150,000:

Howell's share = ($50,000 / $125,000) * $150,000 = $60,000

Nickles' share = ($75,000 / $125,000) * $150,000 = $90,000

Plan (c) - Ratio of time devoted to the business:

Under this plan, the net income will be divided based on the ratio of time devoted to the business.

Total time devoted = 1 (Howell) + 0.5 (Nickles) = 1.5

(1) Net income of $420,000:

Howell's share = (1 / 1.5) * $420,000 = $280,000

Nickles' share = (0.5 / 1.5) * $420,000 = $140,000

(2) Net income of $150,000:

Howell's share = (1 / 1.5) * $150,000 = $100,000

Nickles' share = (0.5 / 1.5) * $150,000 = $50,000

Plan (d) - Interest on original investments and remainder in the ratio of 3:2:

Under this plan, a 10% interest will be paid on the original investments, and the remaining net income will be divided in the ratio of 3:2.

Interest on Howell's investment = 10% of $50,000 = $5,000

Interest on Nickles' investment = 10% of $75,000 = $7,500

Remaining net income = Net income - Total interest = Net income - ($5,000 + $7,500)

(1) Net income of $420,000:

Remaining net income = $420,000 - ($5,000 + $7,500) = $407,500

Howell's share = ($407,500 * 3) / 5

Nickles' share = ($407,500 * 2) / 5

(2) Net income of $150,000:

Remaining net income = $150,000 - ($5,000 + $7,500) = $137,500

Howell's share = ($137,500 * 3) / 5

Nickles' share = ($137,500 * 2) / 5

Read more on net income here:https://brainly.com/question/28390284

#SPJ4

The elements required to form a contract that will be upheld by the court include a mutual agreement, competent parties, a lawful objective, consideration, and proper form.

Let's discuss these elements in detail:

1. Mutual agreement: This refers to a meeting of the minds or a consensus between the parties on the subject of the contract. Both parties should have the same understanding of the terms of the agreement.

2. Competent parties: Both parties should be capable of entering into a contract. This means that they should be of legal age, not under duress or influence, not mentally disabled, and not under the influence of drugs or alcohol.

3. Lawful objective: The object of the contract should not be illegal or against public policy

.4. Consideration: Consideration refers to the benefits exchanged between the parties. Each party should give or receive something of value in exchange for their obligation under the contract.

5. Proper form: Certain types of contracts need to be in writing to be enforced by a court.

These include contracts for the sale of land, contracts that cannot be performed within one year, and contracts for the sale of goods over a certain amount. Oral contracts are just as valid as written contracts unless they fall within one of the six categories of contracts that must be in writing as stated in the Statute of Frauds.Failure to comply with a valid contract is known as a breach of contract. This happens when one party fails to fulfill their obligation under the contract. The term "meeting of the minds" is synonymous with mutual assent. It means that both parties have agreed to the terms of the contract.Courts rarely question the adequacy of consideration unless it is two different quantities of the same thing, such as, for example, $20 and $200. The adequacy of consideration refers to whether the value of the benefits exchanged is roughly equal. As long as there is some benefit to each party, courts are unlikely to question the adequacy of consideration.

To know more about Oral contracts refer to:

https://brainly.com/question/32462208

#SPJ11

-0.851 is the NPV of this investment given the conditional failure rates above and a required rate of return of 25%.

Given the data in the question,

Initial investment = CHF 2 million

Expected future value = CHF 15 million

Probability of failure, conditional on year is provided below:

Year Probability of failure

1 20%

2 20%

3 15%

4 10%

We need to calculate the NPV of this investment given the conditional failure rates above and a required rate of return of 25%.

We know that the formula for NPV (Net Present Value) is as follows:

[tex]NPV=\sum \frac{F_t}{(1+r)^t} - I_0[/tex]

where

[tex]F_{t}[/tex] is cash flow at time t and

[tex]I_{o}[/tex] is the initial investment.

To calculate the cash flow, we need to consider two cases:

If the venture survives and if it fails. Cash flow if the venture survives. The probability that the venture will survive and have an expected value of CHF 15 million at the end of four years is

= 1 – 0.2 – 0.2 – 0.15 – 0.1

= 0.35.

Using the formula for the future value of a single amount,

FV = PV (1 + i)ⁿ

where

PV is the present value,

i is the interest rate and

n is the number of periods,

The future value of CHF 15 million at the end of four years, discounted at 25%, is:

= [tex]\frac{15 \text{million}}{(1 + 0.25)^4}[/tex]

= CHF 5.052 million

Therefore, the cash flow if the venture survives is CHF 5.052 million.

Cash flow if the venture fails

The total probability of the venture failing

= 0.2 + 0.2 + 0.15 + 0.1

= 0.65.

If the venture fails, the cash flow is the initial investment of CHF 2 million.

NPV calculation

[tex]NPV = \frac{5.052}{(1+0.25)^4} - 2[/tex]

           = 1.149 - 2

           = -0.851

Therefore, the NPV of this investment given the conditional failure rates above and a required rate of return of 25% is -0.851 million CHF.

Learn more about the Investment here: https://brainly.com/question/29547577

#SPJ11

The new monthly payment, after refinancing at an interest rate of 4.50% following the initial 5 years at 4%, would be approximately $2,121.94.

To calculate the new monthly payment after refinancing, we need to use the amortization formula for a mortgage. The formula is:

M = P * (r(1+r)^n) / ((1+r)^n - 1)

Where:

M = Monthly payment

P = Principal amount (initial loan amount)

r = Monthly interest rate

n = Total number of monthly payments

Let's calculate the original monthly payment for the first 5 years:

Principal amount (P) = $420,000

Interest rate (j2) = 4% per annum (converted to a monthly rate)

Number of monthly payments (n) = 5 years * 12 months per year = 60 months

First, let's convert the annual interest rate to a monthly rate:

r = j2 / 12 / 100

Now we can calculate the monthly payment for the first 5 years:

M1 = P * (r(1+r)^n) / ((1+r)^n - 1)

Let's substitute the values into the formula:

r = 4 / 12 / 100 = 0.003333 (monthly rate)

n = 60 (number of monthly payments)

P = $420,000

M1 = $420,000 * (0.003333 * (1+0.003333)^60) / ((1+0.003333)^60 - 1)

Calculate M1 using a calculator:

M1 ≈ $2,003.34 (rounded to the nearest cent)

Now, let's calculate the new monthly payment after refinancing with an interest rate of j2 = 4.50%. The remaining term would be 25 years (30 years - 5 years) or 300 months.

Principal amount (P) remains the same: $420,000

New interest rate (j2) = 4.50% per annum (converted to a monthly rate)

Number of monthly payments (n) = 300 months

Again, convert the annual interest rate to a monthly rate:

r = j2 / 12 / 100

Calculate the new monthly payment:

M2 = P * (r(1+r)^n) / ((1+r)^n - 1)

Substitute the values into the formula:

r = 4.50 / 12 / 100 = 0.00375 (monthly rate)

n = 300 (number of monthly payments)

P = $420,000

M2 = $420,000 * (0.00375 * (1+0.00375)^300) / ((1+0.00375)^300 - 1)

Calculate M2 using a calculator:

M2 ≈ $2,121.94 (rounded to the nearest cent)

Therefore, the new monthly payment after refinancing at an interest rate of j2 = 4.50% would be approximately $2,121.94.

Learn more about: monthly payment

brainly.com/question/26192602

#SPJ11

1. The closing entries of September in Steamed Sensation, Inc. are:

1) Debit balance in service revenue $9,900; Credit balance in unearned service revenue $1,000 and

2) Debit balance in depreciation expense, equipment $1,800; Credit balance in accumulated depreciation, equipment $1,800.

2. The ending balance in Retained earnings. Retained earnings at the end of September = $7,400 - $300 + $9,900 - $1,800 - $300 = $14,000.

3. Prepare a post-closing trial balance. The post-closing trial balance of Steamed Sensation, Inc., as of September 30, 2018, is shown below: Account Cash Accounts receivable Prepaid rent Supplies Equipment Accumulated depreciation, equipment Accounts payable Common stock Retained earnings Total Debit 5,800 8,000 4,000 550 32,000 8,000 --- --- 14,000 Credit --- --- --- --- --- 8,000 4,800 8,000 81,000.

Learn more about trial balance:  https://brainly.com/question/24914390

#SPJ11

As a strategic manager, you can craft a corporate strategy for your company by analyzing the external and internal environment, setting clear goals, formulating a strategy, and implementing it effectively.

Crafting a corporate strategy requires a strategic manager to analyze the external and internal environment of the company. The strategic manager needs to understand the company's strengths and weaknesses as well as the opportunities and threats presented by the market. Once the strategic analysis is complete, the strategic manager can set clear goals for the company.

After setting clear goals, the strategic manager can formulate a strategy that aligns with the goals and maximizes the company's strengths while minimizing weaknesses. The strategy should also address the opportunities and threats present in the market.

Finally, the strategic manager must implement the strategy effectively by communicating it to all relevant stakeholders, allocating resources effectively, monitoring progress, and making adjustments as necessary. By following this process, a strategic manager can craft a successful corporate strategy that drives the company's growth and profitability.

To know more about the strategic manager visit:

https://brainly.com/question/32239384

#SPJ11

In Round #2, the accurate statement concerning Littlefield Labs is that ROP should not be less than the average inventory level.

In Littlefield Labs, Round #2, the Reorder Point (ROP) and Reorder Quantity (ROQ) are important factors in managing inventory levels. The ROP represents the inventory level at which a new order should be placed, while the ROQ is the quantity to be ordered.

Out of the given options, the correct statement is that ROP should not be less than the average inventory level. This means that the ROP should be set at a level that ensures inventory is replenished before it reaches an unacceptable low level. By setting the ROP above the average inventory level, the system can account for variations in demand and lead time, ensuring that there is sufficient inventory to meet customer demand and avoid stockouts.

The other options presented in the question are incorrect. The ROQ does not necessarily need to be at least as high as the ROP (option a). The ROP does not need to be less than the demand for four days (option b) or set at no less than 600 (option d). These statements do not align with the principles of inventory management and may result in either excess inventory or stockouts.

Learn more about inventory, below:

https://brainly.com/question/31146932

#SPJ11

The Wicksell-Lindahl mechanism provides incentives for individuals to reveal their true preferences regarding the public goods provision since their payments are based on their willingness to pay. Thus, this mechanism provides a more efficient outcome compared to majority voting.

Consider a simple public good economy with three people and two goods: one public (x) and one private (y). Assume that one unit of public good can be produced with one unit of private good. Three people have the following utility functions:u1(x,y1) = x1/2 + y1u2(x,y2) = 2x1/2 + y2u3(x,y3) = 4x1/2 + y3(15 points) Suppose the fixed tax shares are t1 = t2 = t3 = 1/3.

What is the majority voting equilibrium output of the public good?

The budget constraint for any one of the people is: ti*y + (1/3)*y = xi … (i=1,2,3)Now suppose that each person proposes their desired quantity of the public good: x1, x2, x3. Then the quantity provided will be: x* = x1 + x2 + x3. The contributions will be: ti*x* = (1/3)*x* for all i = 1, 2, 3.It will be the outcome which maximizes the sum of the individual utilities: U(x*, y1) + U(x*, y2) + U(x*, y3).First person's utility function: U(x*, y1) = (x*/2) + y1Second person's utility function: U(x*, y2) = x*/2 + y2Third person's utility function: U(x*, y3) = 2x*/2 + y3= x* + y1 + y2 + y3

This expression only depends on x* and is a linear function of x*.Thus, the maximum will be reached at one of the endpoints: x* = 0 or x* = infinity.Substituting these values of x*, we can get the quantity of the public good demanded:x* = 0: U(x*, y1) + U(x*, y2) + U(x*, y3) = 0 + y1 + y2 + y3 = 1x* = infinity: U(x*, y1) + U(x*, y2) + U(x*, y3) = infinity + y1 + y2 + y3 = infinityAs a result, in this majority voting equilibrium, zero units of public good will be produced. (The majority voting equilibrium outcome of the public good is zero.) (15 points) Suppose the fixed tax shares are t1 = t2 = t3 = 1/3.

What is the majority voting equilibrium output of the public good?

The majority voting outcome is inefficient since there will be no provision of public goods even though it is socially desirable to have the public good. (5 points)

Is the majority voting outcome efficient?

Explain.(10 points) Compare Wicksell-Lindahl and Majority Voting mechanisms in terms of efficiency and incentives.Both Wicksell-Lindahl and Majority Voting mechanisms are used to determine the optimal provision of public goods.

However, there are differences in their outcomes and incentives. Majority Voting is a political process where individuals vote on the amount of public goods to be provided. It requires that the decision must be approved by the majority of voters. As a result, the decision will be made only if there is a strong incentive for the majority to vote in favor of it. Incentives are also aligned with the preferences of the majority, as they will gain if the public good is produced.The Wicksell-Lindahl mechanism is a market-like mechanism for determining the optimal provision of public goods.

It suggests that the optimal level of public goods provision is one where the marginal cost of provision is equal to the sum of marginal benefits of the provision for each individual in society. The Wicksell-Lindahl mechanism provides incentives for individuals to reveal their true preferences regarding the public goods provision since their payments are based on their willingness to pay. Thus, this mechanism provides a more efficient outcome compared to majority voting.

Learn more about Mechanism

here,https://brainly.com/question/27921705

#SPJ11

The annual rate of simple interest charged on the loan was approximately 19.006%.

To calculate the annual rate of simple interest, we need to use the formula:

Interest = Principal * Rate * Time

Given:

Principal (P) = $6,700.00

Interest (I) = $442.31

Time (T) = The period between October 28, 2014, and March 4, 2015 (approximately 127 days)

Let's calculate the time in years by dividing the number of days by 365:

Time (T) = 127 days / 365 days

Now, we can rearrange the formula to solve for the rate (R):

Rate (R) = Interest / (Principal * Time)

Substituting the values:

Rate (R) = $442.31 / ($6,700.00 * (127 / 365))

Rate (R) = $442.31 / ($6,700.00 * 0.3479)

Rate (R) ≈ $442.31 / $2,326.33

Rate (R) ≈ 0.19006

To convert the rate to a percentage, we multiply by 100:

Rate (R) ≈ 19.006%

Therefore, the annual rate of simple interest charged on the loan was approximately 19.006%.

Learn more about annual rate  here:

https://brainly.com/question/28347040

#SPJ11

In order to ensure efficient monitoring, accountability, and ethical behavior inside organizations, corporate governance control mechanisms are essential.  Top company management can choose from a variety of corporate governance systems, such as: Internal control systems, the board of directors, executive compensation, shareholder activism, and external regulations and standards

Internal control systems are accounting and auditing procedures used in the finance division of a business to guarantee the accuracy of financial reporting and conformity with legal requirements.

Internal controls assist businesses in abiding with rules and regulations and preventing fraud. By making sure that policies are followed, management budgets are followed, capital shortages are discovered, and correct reports are provided for leadership, they may also assist in enhancing operational efficiency.

Learn more about Internal control systems, from :

brainly.com/question/29870556

#SPJ4

Kotter's eight-step plan for implementing change provides a structured approach to change management. It has been tested in a variety of businesses and proven to be effective.

Kotter believes that the following eight steps are critical to successfully implementing organizational change:

Step 1: Establishing a sense of urgency: To establish a sense of urgency, organizations must first identify the need for change. The organization should focus on the potential benefits of change, as well as the risks associated with inaction.

Step 2: Creating a powerful coalition: The organization should create a coalition of influential people to help drive change. The coalition should include people from all levels of the organization, including employees, managers, and executives.

Step 3: Developing a vision and strategy: A clear and compelling vision can help organizations successfully navigate change. The organization should create a vision that is easy to communicate and understand.

Step 4: Communicating the change vision: It is critical to communicate the vision effectively to all stakeholders. The organization should use various communication channels to ensure that all stakeholders are aware of the change.

Step 5: Empowering employees for broad-based action: Empowering employees is critical to successful change management. The organization should provide training and support to employees to help them adjust to the new way of doing things.

Step 6: Creating short-term wins: Short-term wins help build momentum and keep employees motivated. The organization should identify opportunities for quick wins to help build momentum.

Step 7: Consolidating gains and producing more change: Consolidating gains is critical to long-term success. The organization should identify opportunities to build on early successes and produce additional change.

Step 8: Anchoring new approaches in the organization's culture: Anchoring new approaches in the organization's culture is the final step.

The organization should ensure that the changes become part of the organization's culture and are sustained over time.

To  know more about Empowering employees refer to:

https://brainly.com/question/14582348

#SPJ11

a. demand is approximately -2.04. b. approximately 76%. c. Other reasons for McDonald's cutting prices might include increasing market share, attracting new customers.

a. To justify the price cut from ¥530 to ¥410, McDonald's Japanese affiliate needs to increase the volume of sales for this meal. The previous profit margin for this meal was ¥220.

By subtracting the cost reduction of ¥30 from the profit margin, we can calculate that McDonald's needs a volume increase of ¥220 + ¥30 = ¥250 to maintain the same level of profit.

The implied price elasticity of demand associated with this necessary rise in demand is calculated by dividing the percentage change in quantity demanded (¥250) by the percentage change in price (¥120, which is the price difference between ¥530 and ¥410). This results in an implied price elasticity of demand of approximately -2.08.

b. If the sales volume of this meal rises by 60 percent, we can calculate the percentage change in McDonald's dollar profit. The original profit from this meal was ¥220. With a 60 percent increase in sales volume, the new profit would be ¥220 + (60% of ¥220) = ¥352. Therefore, the percentage change in McDonald's dollar profit from this meal would be (¥352 - ¥220) / ¥220 * 100 = 60 percent.

c. Besides raising its profits, McDonald's might have had other reasons for cutting the price. Some possible reasons include increasing market share by attracting more customers, responding to competition from other fast-food chains, stimulating overall sales and customer traffic, promoting other menu items, or enhancing customer loyalty. Price cuts can be strategic decisions aimed at achieving various objectives beyond immediate profit increases.

Learn more about sales here: brainly.com/question/29436143

#SPJ11