Bob and Tom are two criminals who have been arrested for burglary. The police put Tom and Bob in separate cells. They offer to let Bob go free if he confesses to the crime and testifies against Tom. Bob is also told that he will serve a 15-year sentence if he remains silent while Tom confesses. If he confesses and Tom also confesses, they will each serve a 10-year sentence. Separately, the police make the same offer to Tom. Assume that if Bob and Tom both remain silent, the police only have enough evidence to convict them of a lesser crime and they will serve 3-year sentences.
a. Use this information to write a payoff matrix for Bob and Tom.
b. Does Bob have a dominant strategy? If so, what is it?
c. Does Tom have a dominant strategy? If so, what is it?
d. What sentences do Bob and Tom serve? How might they have avoided this outcome?
Answers
Answer:
A. Check the attached image for the payoff matrix
B. Confess
C. Confess
D. 3 years. They could have avoided this by confessing.
Explanation:
The above question is known as the prisoner's dilemma. It is a form of game theory. It analyses the best option for a player in a game without regard for what the other player does.
The dominant strategy is the best decision for the player without considering what the other player does or without cooperation between the players. The dominant strategy for each of the prisoners is to confess because if one confesses and the other doesn't, the one that confesses goes free. If both prisoners confesses, they get 10 years each. These is a better option than not confessing and getting either 3 years or 15 years of prison sentence.
Because both players don't confess, hence they get 3 years in prison. They could have avoided the sentence by confessing.
I hope my answer helps you
The problem depicts a classic example of the 'prisoner's dilemma' in game theory. Both Bob and Tom's dominant strategy is to confess to reduce their potential sentence, however, if they cooperated and remained silent, they would both face a significantly lesser sentence of 3 years each. The risk, however, lies in trusting each other to remain silent.
Explanation:This problem is a classic example of the prisoner's dilemma in game theory. The payoff matrix for Bob (B) and Tom (T) would look like this:
If B and T both confess (C), then both receive a 10-year sentence.If B confesses (C) and T remains silent (S), then B goes free and T receives a 15-year sentence.If B remains silent (S) and T confesses (C), then B receives a 15-year sentence and T goes free.If B and T both remain silent (S), then both receive a 3-year sentence.To answer the questions:
Bob's dominant strategy is to confess as it either ensures his freedom or reduces his sentence to 10 years rather than face a 15-year sentence if Tom confesses.Tom's dominant strategy also mirrors Bob's - it is better for him to confess.If they were to act on their dominant strategy of confessing, they would both receive a 10-year sentence each. However, this outcome could have been avoided if trust existed between Bob and Tom. Since both would have faced significantly less prison time of 3 years each by remaining silent, it would have been a better overall choice for them cooperation-wise. Yet, the risk taken in trusting the other person to also remain silent is what creates this paradox.Learn more about Prisoner's Dilemma here:https://brainly.com/question/33721898
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Related Questions
Franklin Manufacturing Company (CMC) was started when it acquired $99,000 by issuing common stock. During the first year of operations, the company incurred specifically identifiable product costs (materials, labor, and overhead) amounting to $67,500. CMC also incurred $67,500 of engineering design and planning costs. There was a debate regarding how the design and planning costs should be classified. Advocates of Option 1 believe that the costs should be classified as general, selling, and administrative costs. Advocates of Option 2 believe it is more appropriate to classify the design and planning costs as product costs. During the year, CMC made 4,500 units of product and sold 3,900 units at a price of $36.00 each. All transactions were cash transactions. Required a-1. Prepare an income statement and balance sheet under option 1. a-2. Prepare an income statement and balance sheet under option 2. b. Identify the option that results in financial statements that are more likely to leave a favorable impression on investors and creditors. c. Assume that CMC provides an incentive bonus to the company president equal to 15 percent of net income. Compute the amount of the bonus under each of the two options. Identify the option that provides the president with the higher bonus. d. Assume a 35 percent income tax rate. Determine the amount of income tax expense under each of the two options. Identify the option that minimizes the amount of the company’s income tax expense.
Answers
Final answer:
When calculating the accounting profit for a firm, the total costs are subtracted from sales revenue. For Franklin Manufacturing Company, the classification of design and planning costs affects net income, the president's bonus, and income tax expense, with Option 1 showing higher net income and a larger bonus but higher tax expenses.
Explanation:
Financial Statement Preparation under Two Options
Calculating the accounting profit for a firm involves subtracting the total costs from the sales revenue. In the provided example, the firm had sales revenue of $1 million and incurred costs for labor, capital, and materials amounting to $950,000 ($600,000 + $150,000 + $200,000). Thus, the accounting profit would be the remaining balance of $50,000.
Option 1: Design and Planning Costs as General, Selling and Administrative Costs
Under this option, the design and planning costs are not included in the product cost and thus not affecting the cost of goods sold (COGS).
Option 2: Design and Planning Costs as Product Costs
Under this option, the design and planning costs are included in the product cost, which will increase the COGS and decrease the gross profit when compared to Option 1.
Without the specific financial details of Franklin Manufacturing Company, we can contemplate the effects in general terms:
Net income will be lower under Option 2 than Option 1 because of higher COGS, leading to a smaller bonus for the company president based on the performance incentive and lower income tax expenses due to lower taxable income.Investors and creditors might perceive the financial statements under Option 1 to be more favorable since it shows a higher net income.The president's bonus is tied to the net income, thus it will be higher under Option 1 given the higher net income.Weighing the tax implications, Option 2 would result in lower income tax expenses due to lower taxable income.Outlines give you a chance to organize your thinking before determining word choice and sentence structure. Which of the following create a more effective outline? Check all that apply.
a. Make each subpoint exclusive
b. Avoid single items under major components
c. Allow subpoints to overlap
d. Separate the main topic from the title
e. Break subpoints into major components
f. Divide the main topic into major components
Answers
Answer:
The correct answers are letters "A" and "E": Make each subpoint exclusive; Break subpoints into major components.
Explanation:
Outlining implies defining the main idea within the tittle first. Then, the main topic should be divided into major components, between three to five if possible. The components must then be divided into major subcomponents. In the case of having single subcomponents, they should be related to the component above or below. Each subcomponent must be exclusive and explained in detail.
Night Shades, Inc. (NSI), manufactures biotech sunglasses. The variable materials cost is $11.13 per unit, and the variable labor cost is $7.29 per unit. a. What is the variable cost per unit? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Suppose the company incurs fixed costs of $875,000 during a year in which total production is 190,000 units. What are the total costs for the year? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. If the selling price is $44.99 per unit, does the company break even on a cash basis? If depreciation is $435,000 per year, what is the accounting break-even point? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Answers
Answer:
Part a. What is the variable cost per unit?
Variable Cost per Unit is $ 11.13+ $ 7.29 = $18.42
Part b. What are the total costs for the year?
Production for the year is 190000 units
Calculation of Total Production = Variable costs + Fixed Costs
= 190000 units × $18.42 + $875,000
=$ 4,374,800
Part c. If the selling price is $44.99 per unit, does the company break even on a cash basis?
The Company Breaks Even when
Total Sales Revenue = Total Production Costs
Total Sales Revenue = $44.99 × 190000
= $ 8,548,100
Total Sales Revenue $ 8,548,100 > Total Production Costs $ 4,374,800
Therefore Company does break even on a cash basis
Part c. If depreciation is $435,000 per year, what is the accounting break-even point?
Total Production Costs = $4,374,800+$435000
= $4,809,800
Therefore accounting break-even point is $4,809,800 Sales
Explanation:
Part a. What is the variable cost per unit?
Variable Cost are costs which Vary with the level of Activity.
Part b. What are the total costs for the year?
Calculation of Total Production Costs= Variable costs + Fixed Costs
Part c. If the selling price is $44.99 per unit, does the company break even on a cash basis?
Break-Even Point is the Point when the company neither makes a profit or a loss
Total Sales Revenue $ 8,548,100 > Total Production Costs $ 4,374,800
Therefore Company does break even on a cash basis
Part c. If depreciation is $435,000 per year, what is the accounting break-even point?
In simple terms the break even point in Sales Revenue is equal to all Variable plus fixed costs
According to the question, the following conditions are as follows:
a. The variable cost per unit is $18.42.
b. The total costs for the year are $4,374,800.
c. The accounting break-even point is 49,303.73 units.
The amount of product generated determines the fluctuation in variable costs. Raw materials, labor, and commissions are examples of variable costs. Regardless of the level of production, fixed expenses stay constant.
Here,
(a) Calculate the variable cost per unit as follows:
Variable cost per unit = Variable materials cost + Variable labor cost
Variable cost per unit = $11.13 + $7.29
Variable cost per unit = $18.42
Therefore, the Variable cost per unit is $18.42.
(b) Calculate the total cost as follows:
Total costs = Variable cost per unit x Number of units produced + Fixed costs
Total costs = $18.42 x 190,000 + $875,000
Total costs = $4,374,800
Therefore, the total cost is $4,374,800.
(c) Calculate the accounting break-even point as follows:
Accounting Breakeven Point = (Fixed costs + Depreciation) / Contribution margin per unit
Accounting Breakeven Point = ($875,000 + $435,000) / $26.57
Accounting Breakeven Point = 49,303.73 units
Working Note:
Calculate the contribution margin per unit as follows:
Contribution margin per unit = Selling price per unit - Variable cost per unit
Contribution margin per unit = $44.99 - $18.42
Contribution margin per unit = $26.57
Calculate the cash breakeven point as follows:
Cash Breakeven Point = Fixed costs / Contribution margin per unit
Cash Breakeven Point = $875,000 / $26.57
Cash Breakeven Point = 32,931.88 units
Therefore, the accounting break-even point is 49,303.73 units.
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On January 1, 2017, Christel Madan Corporation had inventory of $56,000. At December 31, 2017, Christel Madan had the following account balances.
Freight-in $ 4,100
Purchases 505,500
Purchase discounts 7,250
Purchase returns and allowances 3,500
Sales revenue 810,000
Sales discounts 5,100
Sales returns and allowances 12,000
At December 31, 2017, Christel Madan determines that its ending inventory is $66,000.
Compute Christel Madan’s 2017 gross profit.
Gross profit?
Compute Christel Madan’s 2017 operating expenses if net income is $142,000 and there are no nonoperating activities.
Operating expenses?
Answers
Answer:
Gross Profit = $304,050
Operating expenses = $162,050
Explanation:
The computation of gross profit and operating expenses is shown below:-
Net purchases = Purchase - Purchase discounts - Purchase returns and allowances
= $505,500 - $7,250 - $3,500
= $494,750
Cost of goods sold = Net purchases + Freight-in + Inventory + Ending inventory
= $494,750 + $4,100 + $56,000 - $66,000
= $488,850
Gross profit = Net sales - Cost of goods sold
= ($810,000 - $5,100 - $12,000) - $488,850
= $304,050
Operating expenses = Gross profit - Net income
= $304,050 - $142,000
= $162,050
When auditors conclude that a material and pervasive departure from GAAP exists in an entity's financial statements, which of the following phrases would most likely be included in their report
Do not present fairly in all material respects
Answers
Answer:
Do not present fairly in all material respects
Explanation:
In auditing, this kind of conclusion by the auditor is referred to as an adverse opinion.
An adverse opinion is expressed by the auditor in the auditor's report on a company's financial statement when there is a material misstatement which its impact can be pervasive on the financial statements.
This adverse opinion is normally expressed only when the financial statements pervasively not in line with Generally Accepted Accounting Principles GAAP.
For instance, an adverse opinion will be expressed by the auditor when a company refuses to consolidate a material subsidiary.
Patricia Hill Collins refers to race, class, gender, etc. as "interlocking structures of oppression." Implied in that statement is that while some are oppressed and discriminated against on the basis of one or more of these categories, others continue to be be privileged. Citing peer reviewed sociological research on the subject, define privilege (on the basis of categories of identity) and discuss how privilege operates in peoples' daily lives.
Answers
Answer:
Patricia Hill Collins – Interlocking Structure of Oppression
Patricia Hill Collins is Charles Phelps Taft Professor of Sociology within and she is also a former Chair of the Department of African American Studies at the University of Cincinnati. Professor Patricia Collins received her B.A. and Ph.D. degrees in sociology from Brandeis University, and a degree in M.A.T. from Harvard University. She is a social theorist; her research and scholarship have dealt primarily with issues of gender, race, social class, sexuality and nation specifically relating to African American women. She has published number of articles in professional journals such as Sociological Theory, Ethnic and Racial Studies, Social Problems, Signs, and Black Scholar, as well as in various edited volumes.
In 1993 Patricia Collins wrote a wonderful piece discussing race, class, and gender as categories of analysis and connection in American society. This is very informative and let me take this liberty to summarize what I consider to be important things which we all should know about.
We live in a society which contains many kinds of people living around us. May times we all differ from each other. There are people are people around us from different backgrounds, race, caste, creed etc. With these different people, there are some people who are being oppressed for a long time in our society. These people are the victim of oppression. Due to this oppression and inequality, we have made a generalization that some people are victims and some are an oppressor. But this idea is somewhat flawed. For example, white skin women fight for the right to equality of women but little did they understand that white skin people have been oppressing black people for ages.
We live in a world where a group of people says about the oppression which they have faced at maximum. They talk about extreme oppression case of the people. People should know that these cases and concepts of oppression are full of contradictions and errors. In this world, If we look closely, we will come to know that there are only a few people who are pure victims of this oppression , otherwise, we all have oppressed other people at one point or another.
If we look closely to ourselves then, we’ll come to know that there is a piece of oppressor inside us. And this is the reason that world is having more oppressors and very less pure victims. We should look at our behavior while talking to other people, especially those who are in a minority so that we can take care of the piece of oppressor within us. In order to take care of this inequality, we need to understand new visions of what is oppression. When we’ll look at the terms closely, our ideas and vision can lead to short-term social changes and revolutions.
People talk about inequality and oppression most of the times, but they forget that sometimes, the oppressed people have many privileges based on their care, color, creed, gender etc. These things should be much more talked and taken care of. There are also some people who are oppressor according to some culture and oppressed according to another. Thus, we need some more info and a New vision to look into these flaws of the society. And it is seen many times that these institutions are interlocked.
The society we live in is a complex web of problematic relationship with the people living in it. There is a kind of cobwebs in the society these days. All people are having problems and personal issues living in the society. This is a part where inequality also plays a major role. We genuinely and sincerely need a new vision to fight this inequality.
Re-conceptualizing race, class, gender as a group for analysis
In order to Re-conceptualize this concept of oppressor and victim, we need to understand the fact that we all are oppressed and oppressor at some point in time. We must stop the additive analysis of oppression that is adding race, gender and class oppression will lead to a greater sum. And apart from that, we stand on the pillars of quantification of the oppression. We can’t deny the fact that there are people who are more oppressed than other and also the intensity may vary.
In order to establish new thinking in our society, we need to ask new questions to ourselves, see through the new vision and new perspective in the society. Our task is redefined in order to remove any kind of oppression and inequality in the society.
Explanation:
Intersectionality is the interconnected nature of social categories such as race, class, and gender, and privilege refers to systemic advantages for certain social categories. Patricia Hill Collins' theory explains how these interlocked identities shape individual experiences, leading to distinct forms of oppression or privilege that impact daily life.
Patricia Hill Collins has been instrumental in developing the concept of intersectionality, which emphasizes the interlocking nature of social categories such as race, class, and gender that create overlapping systems of discrimination or disadvantage. This framework suggests that these identity categories are not isolated from each other but are interrelated and manifest in complex ways in people's lives. Privilege, then, refers to the advantages that individuals or groups have solely based on certain aspects of their identity.
For example, an individual might benefit from white privilege in a society where race confers certain advantages, but they may also face gender-based oppression if they are a woman. Intersectional analysis aims to understand the full complexity of how individuals' multiple identities interact to produce unique experiences that cannot be understood by examining single identity categories in isolation.
Privilege operates in people's daily lives through systemic advantages that come with belonging to certain social categories. This operation of privilege can impact access to resources, opportunities for advancement, and the degree of respect and recognition an individual receives within different contexts. It's important to note that someone who is privileged in one area (like race) might still experience oppression in another (like class or gender).
If you bought a share of common stock, you would probably expect to receive dividends plus an eventual capital gain. Would the distribution between the dividend yield and the capital gains yield be influenced by the firm’s decision to pay more dividends rather than to retain and reinvest more of its earnings? Explain.
Answers
Answer and Explanation:
The answer is attached below
Carolyn maintains an average monthly balance of $670 in her checking account. If her bank charges $7 per month as a minimum service fee, what would the annual interest rate need to be to just cover the monthly service fee?
Answers
Answer:
[tex]r=12.54\%[/tex]
Explanation:
Simple Interest
There are two common approaches in finance: Simple interest and compound interest. In the simple interest investment, the interests earned in a certain period are not added as part of the next investment period, i.e. it's equivalent to the account holder to withdraw the interest for each period.
The compound interest computes the interests earned in a period, adds it to the investment and computes the next interests including the previous interests.
The situation in the question requires us to compute the annual interest rate so the average monthly balance on Carolyn's account pays the fees by itself with the interest earned every month. It's equivalent to withdraw $7 as the monthly interest, thus it's considered as simple interest.
The interest earned for a principal P in a given period t at a rate r is given by
[tex]I=P\cdot r\cdot t[/tex]
The interest is assumed to cover the bank's fees, thus I=$7 for t= 1 month, thus, solving for r
[tex]\displaystyle r=\frac{I}{P\cdot t}=\frac{7}{670\cdot 1}=0.0104[/tex]
The annual interest rate is
[tex]r=0.0104*12=0.1254[/tex]
[tex]\boxed{r=12.54\%}[/tex]
Final answer:
To cover a monthly service fee of $7, Carolyn's checking account would require an annual interest rate of approximately 12.54% on her average balance of $670.
Explanation:
The annual interest rate would need to be for Carolyn to just cover a monthly service fee of $7 with an average monthly balance of $670 in her checking account. To find this, we will annualize the monthly service fee and then calculate the interest rate needed to earn that amount in a year. The annual service fee is $7 per month times 12 months, which equals to $84 per year. To break even on the fees with her balance, Carolyn's $670 would need to generate $84 in interest over one year. If 'r' represents the annual interest rate, the equation would be 670 * r = 84. Solving for 'r' gives us r = 84 / 670, which is approximately 0.1254 or 12.54% when converted to a percentage. Therefore, Carolyn's checking account would need to have an annual interest rate of 12.54% to cover the $7 monthly service fee.
Blue Corporation leased equipment to Larkspur, Inc. on January 1, 2017. The lease agreement called for annual rental payments of $1,148 at the beginning of each year of the 3-year lease. The equipment has an economic useful life of 7 years, a fair value of $7,200, a book value of $5,200, and Blue expects a residual value of $4,700 at the end of the lease term. Blue set the lease payments with the intent of earning a 6% return, though Larkspur is unaware of the rate implicit in the lease and has an incremental borrowing rate of 8%. There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What is the amount of the rental payments used in the lease agreement? (Round answer to 0 decimal places, e.g. 5,275.) Rental payments $
Prepare the entries for Blue for 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit 1/1/17 12/31/17 (To record the recognition of the revenue) 12/31/17 (To record depreciation expense on the leased equipment) How would Blue’s accounting in part (a) change if it incurred legal fees of $800 to execute the lease documents and $700 in advertising expenses for the year in connection with the lease? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit 1/1/17 Over the course of the year 12/31/17
Answers
Answer: see the pictures attached
Explanation:
Variable Cost Ratio, Contribution Margin Ratio
Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Fixed factory overhead is $20,000 and fixed selling and administrative expense is $29,500.
Required:
1. Calculate the variable cost ratio.
%
2. Calculate the contribution margin ratio.
%
Answers
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. The unit variable cost is $45. Fixed factory overhead is $20,000 and fixed selling and administrative expense is $29,500.
To calculate the variable cost ratio, we need to use the following formula:
Variable cost ratio= unitary variable cost / selling price
Variable cost ratio= 45/75= 0.6
The contribution margin rate is the difference between the contribution margin and the selling price:
CM ratio= Contribution margin / selling price
CM ratio= (75 - 45)/ 75= 0.4
An investor sells 100 shares short at $43. The sale requires a margin deposit equal to 60 percent of the proceeds of the sale. If the investor closes the position at $49, what was the percentage earned or lost on the investment? If the position had been closed when the price of the stock was $27, what would have been the percent earned or lost on the position? (ignore any dividends, interest or commissions that would normally apply in a short sale)
Answers
Answer:
What would have been the percent earned or lost on the position is 23.2%
Explanation:
Proceeds of the sale $43 X 100 = $4,300 Margin requirement: .6 x $4,300 = $2,580
When the price of the stock rises to $49, the investor loses $600 ($4,300 - $4,900). ThereforeThe percentage lost on the invested funds is ($600)/$2,580 = (23.2%).
On January 1, 20X9, Pitcher Corporation purchased 100 percent of Softball's stock. All tangible assets had a remaining economic life of 10 years at January 1, 20X9. Both companies use the FIFO inventory method. Softball reported net income of $17,000 in 20X9 and paid dividends of $4,700. Pitcher uses the equity method in accounting for its investment in Softball.
Answers
The equity method used by Pitcher Corporation means its investment in Softball is initially recorded at cost and adjusted annually to account for net income and dividends. In 20X9, the net income of $17,000 increased Pitcher's investment value, while the dividends of $4,700 decreased this value.
Explanation:Under the equity method of accounting, when a parent company, here Pitcher Corporation, purchases 100% of the stock of another company, Softball in this case, it records the investment as an asset. The initial investment is recorded at cost, and then the value of this investment is adjusted annually to account for the parent's share of the subsidiary's income and dividends.
In 20X9, Softball reported a net income of $17,000. As Pitcher owns 100% of Softball, it would recognize an increase in the investment of $17,000 in its financial statements. Additionally, when Softball pays dividends, these are treated as a return on investment and so Pitcher would decrease the carrying value of the investment. Here, the dividends amounting to $4,700 would decrease the investment account of Pitcher.
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Using the following accounts and an overhead rate of 80% of direct labor cost, determine the amount of applied overhead. Work in Process Inventory Beginning WIP 18,300 Direct Materials54,900 Direct Labor
Answers
Answer:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Explanation:
Giving the following information:
Overhead is applied base on an estimated overhead rate of 80% of direct labor cost.
We weren't provided with enough information to calculate the allocated overhead. But, I will give a numerical example as well as the formula:
To allocate overhead, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
For example:
Direct labor= $50,000
Allocated overhead= 0.8*50,000= $40,000
On July 15, 2021, the Nixon Car Company purchased 2,200 tires from the Harwell Company for $45 each. The terms of the sale were 2/10, n/30. Nixon uses a perpetual inventory system and the gross method of accounting for purchase discounts.
Answers
Final answer:
The question asks about the accounting treatment for a purchase with a payment term that includes a discount using the gross method in a perpetual inventory system. The purchase is initially recorded at the full amount and later adjusted if the discount is taken within the prescribed discount period.
Explanation:
The question involves the application of purchases with a discount term under a perpetual inventory system using the gross method of accounting. On July 15, 2021, the Nixon Car Company purchased 2,200 tires at $45 each from the Harwell Company, with payment terms of 2/10, n/30. These terms imply that Nixon Car Company has the option to take a 2% discount on the total purchase price if payment is made within 10 days; otherwise, the net amount is due in 30 days.
Under the gross method, we initially record the purchase at the total cost without accounting for the potential discount. If the discount is taken, the accounting records will then be adjusted to reflect the discount on the date of payment within the discount period. If payment is not made within the discount period, no adjustments for purchases discounts will occur.
In this case, assuming Nixon pays within the discount period, the journal entry on the date of purchase (July 15, 2021) would be to debit Inventory for $99,000 (2,200 tires × $45 each) and to credit Accounts Payable for $99,000. If the payment is made within 10 days, then Nixon will debit Accounts Payable for $99,000 and credit Cash for $97,020 (which represents a 2% discount on $99,000) and an Inventory (Purchase Discount) for $1,980, reflecting the discount taken.
On average, there are 8 customers arrives a local bank per hour. Bob is the only bank teller on duty at the bank currently and needs to run out for 6 minutes. What is the probability that no customer will arrive in the next 6 minutes
Answers
Answer:
The probability that no customer will arrive in the next 6 minutes is 1.2 minutes or ratio of 0.2
Explanation:
Expected value is the value on the probability of occurrence of the values.
Expected Time consumed on customer in an hour = 8 x 6 = 48 minutes
Probability of customer arrives = 48/60 = 0.8
Probability that customer will not arrive = 1 - 0.8 = 0.2
Expected time Customer will not come in 6 minutes = 6 x 0.2 = 1.2 minutes
Classifying inflows and outflows of cash Classify each of the following items as an inflow (I) or an outflow (O) of cash, or neither (N). Item Change ($) Item Change ($) Cash Balance negative 300 Accounts receivable plus 1 comma 700 Accounts payable negative 1 comma 200 Net profits plus 900 Notes payable plus 1 comma 500 Depreciation plus 1 comma 100 Long-term debt plus 1 comma 000 Repurchase of stock plus 900 Inventory plus 200 Cash dividends plus 800 Fixed assets plus 400 Sale of stock plus 1 comma 000
Answers
Final answer:
To classify the items as inflows (I) or outflows (O) of cash, you need to determine whether each item represents a change in cash balance. Examples and explanations are provided for each item.
Explanation:
To classify each of the following items as an inflow (I) or an outflow (O) of cash, or neither (N), we need to determine whether each item represents a change in cash balance.
Cash Balance negative 300: Outflow of cash (O)
Accounts receivable plus 1 comma 700: Neither (N), as accounts receivable represents amounts owed to the company but does not involve a direct change in cash.
Accounts payable negative 1 comma 200: Inflow of cash (I), as negative accounts payable indicates a reduction in the amount owed by the company.
Net profits plus 900: Inflow of cash (I), as net profits represent the amount earned by the company.
Notes payable plus 1 comma 500: Inflow of cash (I), as an increase in notes payable represents borrowing money.
Depreciation plus 1 comma 100: Neither (N), as depreciation is a non-cash expense that represents the decrease in value of an asset.
Long-term debt plus 1 comma 000: Inflow of cash (I), as an increase in long-term debt indicates borrowing money.
Repurchase of stock plus 900: Outflow of cash (O), as repurchasing stock involves spending cash to buy back the company's own shares.
Inventory plus 200: Outflow of cash (O), as an increase in inventory requires spending cash to purchase more goods for sale.
Cash dividends plus 800: Outflow of cash (O), as cash dividends involve distributing earnings to shareholders.
Fixed assets plus 400: Neither (N), as adding fixed assets represents a non-cash transaction.Sale of stock plus 1 comma 000: Inflow of cash (I), as selling stock brings in cash from investors.The following probabilistic activity time estimates are for the CPM/PERT network in Problem 9.9: TIME ESTIMATES (DAYS) TIME ESTIMATES (DAYS) ACTIVITY a m b ACTIVITY a m b 1 1 2 6 7 1 1.5 2 2 1 3 5 8 1 3 5 3 3 5 10 9 1 1 5 4 3 6 14 10 2 4 9 5 2 4 9 11 1 2 3 6 2 3 7 12 1 1 1 Determine the following: a.Expected activity times b.Earliest start and finish times c.Latest start and finish times d.Activity slack e.Critical path f.Expected project duration and standard deviation
Answers
Answer:
attached below
Explanation:
A competitive strategy of striving to be the low-cost provider is particularly attractive when: a. Most rivals are trying to be best-cost providers. b. Most buyers use the product in much the same ways, with user requirements calling for a standardized product. c. Most rivals are pursuing focused low-cost or focused differentiation strategies.
Answers
Answer:
The correctt answer is b. Most buyers use the product in much the same ways, with user requirements calling for a standardized product.
Explanation:
Striving to be the representative of the overall low costs of the industry is a powerful competitive approach in the markets with many price-sensitive buyers. A company achieves the leadership of low costs when it becomes the one that provides the products with the lowest costs and is not only one of perhaps several competitors with comparatively low costs. The strategic objective of a low cost company is to reduce them significantly more than its rivals of similar quality. When claiming a cost advantage over rivals, administrators should be careful to include the features and services that buyers consider essential: offering a product too austere undermines the attractiveness of the company's product and can drive buyers away, although its price is lower than competing products.
To achieve maximum efficiency, companies that use a low cost strategy need to get their cost advantage in ways that rivals find it difficult to copy or match. If it is relatively simple or cheap for competitors to imitate the leader's low cost methods, their advantage will last shortly to generate a valuable market advantage.
Toll on a bridge was increased from $.50 to a dollar and the number of vehicles crossing the bridge decreased from 520,000 to 435,000. Calculate demand elasticity for bridge use.
Answers
Answer:
-0.1635
Explanation:
Given that,
Initial price = $0.50
New price = $1
Initial quantity = 520,000
New quantity = 435,000
Percentage change in quantity demanded:
= (Change in quantity demanded ÷ Initial quantity) × 100
= [(435,000 - 520,000) ÷ 520,000] × 100
= (-85,000 ÷ 520,000) × 100
= -0.1635 × 100
= -16.35%
Percentage change in price:
= (Change in price ÷ Initial price) × 100
= [(1 - 0.50) ÷ 0.50] × 100
= (0.50 ÷ 0.50) × 100
= 1 × 100
= 100%
Elasticity of demand:
= Percentage change in quantity demanded ÷ Percentage change in price
= -16.35 ÷ 100
= -0.1635
To maximize revenue from tolls, the city should charge a toll in the inelastic portion of the demand curve.
Explanation:To maximize revenue from tolls, the city should charge a toll in the inelastic portion of the demand curve. The elasticity of demand measures how responsive the quantity demanded is to changes in price. In the inelastic portion, the demand for bridge use is relatively insensitive to price changes, meaning that even if the toll increases, the number of vehicles crossing the bridge will not decrease significantly. By charging a toll in this portion, the city can increase the price without losing too many customers, resulting in higher revenue.
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Mia received a credit card offer in the mail. The credit card has an annual percentage rate of 26%. What is the approximate monthly interest rate that will apply to any unpaid balances on this credit card?
Answers
Answer:
Monthly interest rate = 2.16666667%
Explanation:
Given:
Annual percentage rate = 26% = 26 / 100 = 0.26
Total number of months in a year = 12 month
Monthly interest rate = ?
Computation of monthly interest rate :
Monthly interest rate = Annual percentage rate / Total number of months in a year
Monthly interest rate = 0.26 / 12
Monthly interest rate = 0.0216666667
Monthly interest rate = 2.16666667%
At Burnt Mesa Pueblo, archaeological studies have used the method of tree-ring dating in an effort to determine when prehistoric people lived in the pueblo. Wood from several excavations gave a mean of (year) 1240 with a standard deviation of 26 years. The distribution of dates was more or less mound-shaped and symmetric about the mean. Use the empirical rule to estimate the following.
a. a range of years centered about the mean in which about 68% of the data (tree-ring dates) will be found between________ and_________ A.D.
b. a range of years centered about the mean in which about 95% of the data (tree-ring dates) will be found between________ and_________ A.D.
c. a range of years centered about the mean in which almost all the data (tree-ring dates) will be found between________ and________ A.D.
Answers
Answer:
a. 1214 and 1266 A.D.
b. 1188 and 1292 A.D.
c. 1162 and 1318 A.D.
Explanation:
According to the empirical rule, in a normally distributed data set, 68% of data falls within one standard deviation above or below the mean, 95% of data falls within two standard deviations of the mean and almost all of the data is within three standard deviations of the mean.
If the mean year is 1240 and the standard deviation is 26 years:
a. 68% of data:
[tex]1240 -26 \leq A \leq 1240+26\\1214 \leq A \leq 1266[/tex]
b. 95% of data
[tex]1240 -(2*26) \leq B \leq 1240+(2*26)\\1188 \leq B \leq 1292[/tex]
c. Almost all data
[tex]1240 -(3*26) \leq C \leq 1240+(3*26)\\1162 \leq C \leq 1318[/tex]
At many municipal golf courses, local residents pay a lower fee to play than other golfers do. One necessary condition for the golf course to be able to successfully price discriminate according to residency is that
a.they can check the identification cards of golfers.
b.local resident golfers and other golfers have the same price elasticity of demand to play at the municipal course.
c.there are many golf courses nearby from which golfers can choose.
d.they require all golfers to rent a cart
Answers
The correct option is - A (they can check the identification cards of golfers).
Explanation:
Price discrimination is generally a belief that consumers may be asked to pay either more or less based upon the various points on demographic features. They may also price according to the value of goods or services provided to them.
Thus, in the given case, in order to discriminate the price for the golf players, it is essential to check their cards identifying them as the residents of such place
A business plan:
a. Reduces the risk and uncertainty involved in starting a new company.
b. Is a guarantee of success for the small company.
c. Should be done by professional writers in consultation with the owner.
d. Should be kept in outline form to avoid over structuring the company.
Answers
Answer:
The correct answer is letter "A": Reduces the risk and uncertainty involved in starting a new company.
Explanation:
Business plans represent the goals companies set and the strategies they plan to use to achieve the objectives. In the business plan, the operative priorities are established so managers will certainly know what must be done first and what could be left behind. If applied in a start-up, the business plan could help investors to find out what the company pursues and what its contingency strategy is, reducing the risk of uncertainty.
Procter & Gamble is a consumer products company. It launches many new products every year. The people who develop each new product must understand consumer tastes, distribution, manufacturing, marketing, accounting, and legal issues. P&G uses teams because the group members
Answers
Answer:
Synergize to overcome their interdependent constraints in order to achieve their common goal
Explanation:
First, for Procter and Gamble to develop these money new products yearly it needs to bring together the various function s of many departments including manufacturing, Research and Development, Marketing, Accounting and even the legal team. Such an organisation cannot engage all the members of each of these units, hence, it will need to develop teams made up of key personnel from the various units.
Since the goal of the team is to develop a new product (common goal), they can then overcome their individual departmental differences in ordre to achieve the goal. This is easier than involving whole departments in the development process.
King Waterbeds has an annual cash dividend policy that raises the dividend each year by 44%. The most recent dividend, Div 0Div0, was $ 0.50$0.50 per share. What is the stock's price if a. an investor wants a return of 66%? b. an investor wants a return of 1010%? c. an investor wants a return of 1111%? d. an investor wants a return of 1313%? e. an investor wants a return of 1818%? a. What is the stock's price if an investor wants a return of 66%?
Answers
Answer:
Stock Prices expected of King Waterbeds are:
a. $8.67
b. $5.20
c. $4.73
d. $4.00
e. 2.89%
Explanation:
Based on Kin Waterbeds Dividend Policy of 4% incremental dividend Year on Year, it implies the next dividend Pay out would be $0.52 Per unit of share.
We understand that Returns on Investment in % is the actual Returns in Dollars divided by the invested Amount in Dollars.
Thus, to determine the Amount invested (now refereed to as Stock Prices), it will be my Actual Returns in Dollars divided by my expected Returns on Investment in %
The attached workings demonstrates how we arrived at the answers a to e.
Carl Sonntag wanted to compare what proceeds he would receive with a simple interest note versus a simple discount note. Both had the same terms: $19,500 at 8% for 2 years. Use ordinary interest as needed
Compare the proceeds.
Answers
Answer:
The proceeds from the simple discount note is $16380 , while that of simple interest is $19500
Explanation:
Simple discount notes could likened to a bank loan where interest on the loan is taken from the borrowed funds before disbursement to the loan's beneficiary,hence proceeds from such notes is face value of the notes less interest taken in advance.
While on the other hand,the proceeds from simple interest note is par or face value.
The discount or interest is =8%*$19500=$1560 for one year,but $3120 for two years($1560*2)
The proceeds on the simple discount note =$19500-$3120
=$16380
The proceeds on the simple interest note is face value of $19500
The proceeds from a simple interest note for $19,500 at 8% for 2 years are $22,620. The proceeds from a simple discount note under the same terms are $16,380.
Simple Interest Note Proceeds
a.To calculate the proceeds from a simple interest note, you can use the formula:
Interest = Principal × Rate × Time
Given: Principal = $19,500, Rate = 8%, Time = 2 years.
Interest = $19,500 × 0.08 × 2 = $3,120
Therefore, the proceeds are:
Proceeds = Principal + Interest = $19,500 + $3,120 = $22,620
b.Simple Discount Note Proceeds
For a simple discount note, the proceeds are calculated by discounting the face value using the given rate and time. The formula for discount is:
Discount = Principal × Rate × Time
Discount = $19,500 × 0.08 × 2 = $3,120
The proceeds are therefore the face value minus the discount:
Proceeds = Principal - Discount = $19,500 - $3,120 = $16,380
The correct question is..
Carl Sonntag wanted to compare what proceeds he would receive with a simple interest note versus a simple discount note. Both had the same terms: $19,500 at 8% for 2 years. Use ordinary interest as needed.
a. Calculate the simple interest note proceeds. Simple interest note proceeds
b. Calculate the simple discount note proceeds. Simple discount note proceeds
Towson Corp., had 6,000 shares of $100 par, 4% cumulative preferred stock as of January 1, 2018. No additional shares of preferred stock were issued during fiscal years 2018 & 2019. Dividends were paid to common shareholders in 2017 but no shareholders were paid dividends in 2018. A total of $85,000 of dividends was paid in 2019. Use this information to determine the total dollar amount of dividends that was paid to common shareholders during fiscal year 2019.
Answers
Answer:
Common Dividend paid in 2019 = $37,000
Explanation:
Given:
Number of shares = 6,000
Rate = 4% = 0.04
Share price = $100
Computation of per year Dividend
Dividend = Number of shares × Share price × Rate
Dividend = 6,000 × $100 × 0.04 = $24,000 per year
Preferred dividend for 2 years = $24,000 × 2 = $48,000
Computation of Dividend paid in 2019:
Total Dividend paid = $85,000
Preferred dividend for 2 years = $24,000 × 2 = $48,000
Common Dividend paid in 2019 = $85,000 - $48,000
Common Dividend paid in 2019 = $37,000
An online bank is offering to pay 0.30% interest per month on deposits. Your local bank offers to pay 0.70% interest quarterly (every 3 months). Which is the higher interest rate?
Answers
Answer:
The higher interest rate is 0.3% monthly rather than 0.7% quarterly
Explanation:
Equivalent Rates of Interest
Rates of interest are related to time. If we are given a specific monthly rate r, it can be found an equivalent rate in another time base. But it depends on the type of interest we're working with (simple or compound)
If we have a r=0.3% per month, we can find the equivalent quarterly rate by simply multiplying by 3, if the investment is made on the simple interest type. In this case r = 0.3%*3 = 0.9% quarterly.
If we are working with compound interest, the equivalent rate is more complicated to find
(1+r)=(1+0.003)^3=1.0009003
We find
[tex]r=0.009003*100=9.003\%[/tex]
In both cases, the higher interest rate is 0.3% monthly rather than 0.7% quarterly
The interest rate that is higher in comparison would be:
0.3% monthly
Find the rate of interestGiven that,
Interest rate per month = 0.3%
Interest rate per quarter = 0.7%
If we calculate the annual interest for monthly and quarterly rate, it will be:
Monthly
No. of months in a year = 12
Monthly rate = 0.3%
So,
Annual Interest = 0.3 × 12
= 3.6%
Quarterly
No. of quarters in a year = 4
Quarterly rate = 0.7%
So,
Annual Interest = 0.7 × 4
= 2.8%
Since 3.6 is greater than 2.8, thus, 0.3% monthly is higher.
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To reduce the amount of non-recyclable waste that employees throw out each day, a major computer company removed containers for non-recyclable rubbish from each office and workstation. This altered employee behavior mainly by:________A. increasing employee motivation to be less wasteful.B. helping employees to learn how to be less wasteful.C. altering situational factors and making it difficult to practice wasteful behavior.D. increasing aptitudes that make employees less wasteful.
Answers
Answer:
Answer is option C, ALTERING SITUATIONAL FACTORS AND MAKING IT DIFFICULT TO PRACTICE WASTEFUL BEHAVIOUR.
Explanation:
Employee behaviour is defined as an employee’s reaction or response to a particular situation or circumstance at workplace. It is the way employees conduct themselves at work.
Employees need to behave sensibly at workplace not only to gain appreciation and respect from others but also to maintain a healthy work culture. One needs to adhere to the rules and regulations of workplace.
Using the question as an example, in order to reduce the amount of non-recyclable from each office and work stations, the containers for non-recyclable wastes were removed from the offices and workstations. This has altered the employees behavior which would in turn make it difficult for the employees to practice wasteful behaviour because the situational factors has been altered.
Therefore, the option that best suits the question is option C. ALTERING SITUATIONAL FACTORS AND MAKING IT DIFFICULT TO PRACTICE WASTEFUL BEHAVIOR.
Sarah owns a vacation cabin in the Tennessee mountains. Without considering the cabin, she has gross income of $65,000. During the year, she rents the cabin for two weeks for $2,500 and uses it herself for four weeks. The total expenses for the year are $10,000 mortgage interest; $1,500 property tax; $2,000 utilities, insurance, and maintenance; and $3,200 depreciation.
If an amount is zero, enter "0".
a. What effect does the rental of the vacation cabin have on Sarah's AGI?
Sarah reports rental income of ? and rental expenses of ? for AGI.
b. What expenses can Sarah deduct, and how are they classified (i.e., for or from AGI)?
Note: Assume that she itemizes her deductions.
a. Utilities $
b. Insurance $
c. Property Taxes $
d. Mortgage interest $
e. Maintenance expenses $
Answers
Answer and Explanation:
The vacation home is classified as primarily personal because it was rented for fewer than 15 days during the year. As Sarah can exclude the $2,500 of rent income, the vacation home
transactions have no effect on her AGI.
b. The only expenses that Sarah can deduct are those she normally would deduct as itemized
deductions. This includes the following:
Mortgage interest $10,000 Property tax
1,500
Total
$11,500
Sarah cannot deduct any of the utilities, insurance, and maintenance expenses or the depreciation. None of the expenses are deductible for AGI.