Answer:
Subcontracting
Explanation:
Subcontracting is a business practice in which the main contractor hires additional individuals or companies called subcontractors to help finish up a project. The main contractor is still in charge of the project and must supervise hires to make sure the project is carried out and completed as specified in contract.
Naper Publishing's decision to hire Independent Publishing Group for warehousing and shipping is an example of outsourcing, which allows companies to contract out portions of their business for improved efficiency, expertise, and operational flexibility.
Naper Publishing hiring Independent Publishing Group for warehousing and shipping services is an example of outsourcing. Outsourcing involves contracting out a portion of a business's operations to another party, which can take on many forms. This may include having another company handle IT services, but in the context of Naper Publishing and Independent Publishing Group, it refers to the logistics and distribution aspects of the business. Outsourcing may be leveraged by companies for reasons such as accessing specialized expertise, achieving cost savings, and increasing flexibility in operations.
In the case of Naper Publishing, outsourcing appears to be a strategic decision to optimize operations by engaging with a company that specializes in the necessary services for warehousing and shipping books. This decision can help Naper Publishing focus on its core competencies, such as publishing, while Independent Publishing Group handles logistics, which is its area of expertise. Moreover, outsourcing provides the flexibility to scale services in response to market demands without Naper Publishing having to invest in its own warehousing and shipping infrastructure.
If a test is administered to prospective applicants, what kind of validity is intended to be measured?
a) predictive validity
b) concurrent validity
c) content validity
d) face validity
Answer:
predictive validity
Explanation:
predictive validity is the extent to which a score on a scale or test predicts scores on some criterion measure. For example, the validity of a cognitive test for job performance is the correlation between test scores and, for example, supervisor performance ratings.
January budgeted selling and administrative expenses for the retail shoe store that Craig Shea plans to open on January 1, year 1, are as follows: sales commissions, $50,000; rent, $30,000; utilities, $10,000; depreciation, $5,000; and miscellaneous, $2,500. Utilities are paid in the month after they are incurred. Other expenses are expected to be paid in cash in the month in which they are incurred. Required Determine the amount of budgeted cash payments for January selling and administrative expenses. Determine the amount of utilities payable the store will report on the January 31 pro forma balance sheet. Determine the amount of depreciation expense the store will report on the income statement for year 1, assuming that monthly depreciation remains the same for the entire year.
Answer:
1. The budgeted cash payment for January selling and administrative expenses is $82,500.
2. The amount of utilities payable is $10,000.
3. The amount of depreciation expense the store will report on the income statement for year 1 is $60,000
Explanation:
1. Determine the amount of budgeted cash payments for January selling and administrative expenses.
Budgeted cash payment = Sales commissions + Rent + Miscellaneous
= $50,000 + $30,000 + $2,500
Budgeted cash payment = $82,500.
Therefore, the budgeted cash payment for January selling and administrative expenses is $82,500.
2. Determine the amount of utilities payable the store will report on the January 31 pro forma balance sheet.
Since utilities are paid in the month after they are incurred, the amount of utilities payable is $10,000.
3. Determine the amount of depreciation expense the store will report on the income statement for year 1, assuming that monthly depreciation remains the same for the entire year.
Depreciation expenses for year 1 = $5,000 × 12 = $60,000.
Therefore, the amount of depreciation expense the store will report on the income statement for year 1 is $60,000.
Note that depreciation is not a cash expenses but just a recognition of the wear and tear of the asset. That is why it does not fall under any cash category above but to be reported in the income statement.
The budgeted cash payments for January selling and administrative expenses are $87,500. Utilities payable on the January 31 pro forma balance sheet is $10,000. Yearly depreciation expense is $60,000.
To determine the budgeted cash payments for January selling and administrative expenses, we sum up all the expenses except for utilities, which are paid in the month after they are incurred:
[tex]\[ Cash\ Payments = Sales\ Commissions + Rent + Depreciation + Miscellaneous \]\[ Cash\ Payments = \$50,000 + \$30,000 + \$5,000 + \$2,500 \]\[ Cash\ Payments = \$87,500 \][/tex]
So, the budgeted cash payments for January selling and administrative expenses are $87,500.
To determine the amount of utilities payable on the January 31 pro forma balance sheet, we simply take the utilities expense of $10,000 because it's paid in the month following its incurrence:
[tex]\[ Utilities\ Payable = \$10,000 \][/tex]
For the amount of depreciation expense the store will report on the income statement for year 1, assuming monthly depreciation remains the same for the entire year, we take the monthly depreciation and multiply it by 12:
[tex]\[ Yearly\ Depreciation\ Expense = Monthly\ Depreciation \times 12 \]\[ Yearly\ Depreciation\ Expense = \$5,000 \times 12 \]\[ Yearly\ Depreciation\ Expense = \$60,000 \][/tex]
So, the store will report $60,000 of depreciation expense on the income statement for year 1.
Suppose that you enter into a long contract to buy July silver for $13.57 per ounce on NYMEX. The size of the contract is 5000 ounces. The initial margin is $4,029 per contract, and the maintenance margin is $3,224 per contract. At what price are you going to receive a margin call
Answer:
price rise = $13.731 or above will be margin call
Explanation:
given data
per ounce = $13.57
maintenance margin = $3,224 per contract
initial margin = $4,029 per contract
maintenance margin = $3,224 per contract
solution
we get loss from margin that is
loss = $4,029 - $3,224
loss = $805
and here price for july silver future contract increase as
silver future contract increase = [tex]\frac{805}{5000}[/tex]
silver future contract increase = $0.161
so when price rise to $13.57 + $0.161
price rise = $13.731 or above will be margin call
What is the standard cost of producing one 10-pound case of roasted coffee beans? First, select the formula to calculate the standard cost of input. Then calculate the standard cost of each input. Finally, calculate the total standard cost of producing one 10-pound case of roasted coffee beans.
Answer:
The question posted seems to be lacking in giving what the standard costing is in monetary value. However, the formula can be given.
The formula to calculate the standard cost of input:
standard cost of unit (monetary value) multiplied by the standard quantity per unit
For Example:
If the standard cost of unit is $10 then the standard cost of input will be:
$10 x 10 pounds per case
= $100 per case.
Explanation:
To calculate standard cost, you have to understand the definition of standard cost. Standard cost is the estimated cost of production for a business.
Apply the formula given to calculate the the standard cost of input. Once you have that value, you can then calculate the cost of producing a case of roasted coffee beans.
To calculate the standard cost of producing one 10-pound case of roasted coffee beans, we consider the standard quantities and prices of the main inputs - coffee beans, packaging materials, and energy costs. By applying the formula Standard Cost = Standard Quantity x Standard Price, we can determine the standard cost of each input. The total standard cost is the sum of the standard costs of all inputs.
Explanation:To calculate the standard cost of producing one 10-pound case of roasted coffee beans, we need to determine the standard cost of each input and then calculate the total standard cost. The formula to calculate the standard cost of inputs is:
Standard Cost = Standard Quantity x Standard Price
Let's consider the main inputs for producing roasted coffee beans:
1. Coffee beans: Assuming the standard quantity of coffee beans per 10-pound case is 10 pounds, and the standard price is $1 per pound, the standard cost of coffee beans would be 10 pounds x $1/pound = $10.
2. Packaging materials: Assuming the standard quantity of packaging materials per 10-pound case is $0.50, and the standard price is $0.10 per unit, the standard cost of packaging materials would be $0.50 x $0.10 = $0.05.
3. Energy costs: Assuming the standard quantity of energy per 10-pound case is 500 kilowatt-hours (kWh), and the standard price is $0.15 per kWh, the standard cost of energy would be 500 kWh x $0.15/kWh = $75.
Now, let's calculate the total standard cost by summing up the standard costs of all inputs:
Total Standard Cost = Standard Cost of Coffee Beans + Standard Cost of Packaging Materials + Standard Cost of Energy = $10 + $0.05 + $75 = $85.05
Reducing the complexity of a product and improving a product's maintainability for use are activities of :a. Product Lifecycle Management (PLM) b. product-by-value-analysis c. manufacturability and value engineering d. organizing for product development e. design for destruction (DFD)
Answer:
manufacturability and value engineering.
Explanation:
Manufacturability and value engineering are processes that are concerned with improvement of specifications and designs at the stages of research, development, design, and production.
Value engineering aims to increase the value of a good by analysing the function. Value is the ratio of function to cost, so when we want it increase value we either increase function or reduce cost.
Manufacturability and value engineering involves reduction of the complexity of a product and improving a product's maintainability for use.
Answer:c. manufacturability and value engineering
Explanation: These activities focus on simplifying products and enhancing their maintainability, which are key aspects of manufacturability and value engineering.
At December 31, 2020, Redmond Company has outstanding three long-term debt issues. The first is a $2,000,000 note payable which matures June 30, 2023. The second is a $6,000,000 bond issue which matures September 30, 2024. The third is a $12,500,000 sinking fund debenture with annual sinking fund payments of $2,500,000 in each of the years 2022 through 2026. Prepare the required note disclosure for the long-term debt at December 31, 2020.
Answer:
Year Amount ($) (Disclosure amount for long term debt)
2021 0
2022 2,500,000
2023 4,500,000
2024 8,500,000
2025 2,500,000
Explanation:
The question is to show the required note disclosure of Redmon Company's Long term Debt at December 31, 2020
In order to do this, the note disclosure will take into cognisance the
Year Amount ($) (Disclosure amount for long term debt)
2021 0
2022 2,500,000
2023 4,500,000
2024 8,500,000
2025 2,500,000
Workings:
Disclosure for 2023 = Annual sinking fund payment + the notes payable maturity = (2,000,000 + 2,500,000)
Disclosure for 2024 = Annual sinking fund payment + the notes payable maturity = (6,000,000 + 2,500,000)
Following is a recent Microsoft press release: REDMOND, Wash.—Nov. 29, 2017 — Microsoft Corp. on Wednesday announced that its board of directors declared a quarterly dividend of $0.42 per share. The dividend is payable March 8, 2018, to shareholders of record on Feb. 15, 2018. The ex-dividend date will be Feb. 14, 2018. Prepare the journal entries Microsoft used to record the declaration and payment of the cash dividend for its 7,720 million shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
Solution:
No Event General Journal Debit Credit
1 1 Retained earnings 3,242
Cash dividends payable 3,242
2 2 No journal entry required
3 3 Cash dividends payable 3,242
Cash 3,242
Declaration date:
Cash dividends payable (7,720 million shares × $0.42) = $3,242 million
Describe the actions of people and organizational leaders directly and indirectly involved with the tragedy. Specifically, address the ethical issues they faced
Explanation:
The ethical issues throughout the actions of these people and community members The first move was to provide help for the people affected when the disaster of Hurricane Andrew was resolved. The people in the affected areas and aid agencies have been involved. The treatment and ethics issue contributed to the offer of such relief. As far as the ethic of care is involved, individuals have a duty in respecting the health of others in distress. Thus, this kind of philosophy was followed in this situation by providing the resources to help those impacted by the hurricane with their welfare.
Homes were destroyed, and shelter was needed. Various organisations, however, were knowingly or unknowingly interested in providing food and clothing as well as other basic necessities for such men. However, the ethical issue was the main driving force behind search and rescue operations for those directly impacted by the incident.
An example is the Bahamas National Disaster Coordinator, who played a significant role in motivating their employees to ensure that they offered timely relief to the survivors. The local population was also mobilized as often as possible to support the crisis. It is also the nature of people to support if circumstances allow them to do it anyway face. Hurricane Andrew was a shocking event for the citizens of Bahamas and Louisiana, and therefore the care and compassion ethics had to inspire the local population and different organisations.
While massive property damage happened, the ethics have helped to reduce the number of victims significantly.
Cramer Corporation has an immediate need for large group of workers to fulfill project. Although it allowed its normal hiring processes in some cases short cuts were taken in the interest of getting the workers on board as quickly as possible. As a result, Cramer inadvertently hired some worker without proper documentation. Which of the following best describes Cramer’s liability I this situation?
a. There is no liability for Cramer. If the undocumented workers are discovered the consequences are for them and not for the company
b. Cramer is liable for failure to obtain proper documentation showing that the workers were eligible to work in the US. Further corporate officers of Cramer can be held personally liable for failure to satisfy these requirements. Civil and criminal penalties may apply
c. Cramer didn’t’ know that the workers weren’t eligible to work in the US therefore it cannot be held liable
d. Only the person in charge of hiring at Cramer will be held accountable for bringing in undocumented aliens
Answer:
(B) Cramer is liable for failure to obtain proper documentation showing that the workers were eligible to work in the US. Further corporate officers of Cramer can be held personally liable for failure to satisfy these requirements. Civil and criminal penalties may apply.
Despite the communication difficulty and barriers with companies from different cultures, many organizations are seeking opportunities to partner with companies from other countries for new supply and distribution. This reflects the influence of globalization on the ____ environment of companies.
the answer is task. i just did the assignment.
Despite the communication difficulty and barriers with companies from different cultures, This reflects the influence of globalization on the option B)Task" environment of companies.
What is the communicationGlobalization refers to the increasing interconnectedness and interdependence of economies, cultures, and societies across the world. It has led to the breaking down of traditional barriers and the expansion of opportunities for businesses to operate beyond their national boundaries.
Globalization has led to increased interaction between companies from different cultural backgrounds
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See text below
Despite the communication difficulty and barriers with companies from different cultures, many organizations are seeking opportunities to partner with companies from other countries for new supply and distribution. This reflects the influence of globalization on the ____ environment of companies.
A)economic
B)Task
c)Genral
When a company has become proficient in modifying, upgrading, or deepening the company's resources and capabilities in response to its changing environment and market opportunities, it is called a______________.a. core competence. b. dynamic capability.c. strategic assessment.d. competitive strength matrix.e. distinct competence.
Answer:
b. dynamic capability
Explanation:
The competence described in the question is a company's dynamic capability because it represents the company's ability to change its internal functions according to the dynamics of external enviroment.
A company with a high dynamic capability is able to assess the changes that the market is going through, and adpat itself to those changes. A company that lacks dynamic capability can easily be swayed by market changes, and lose market share, or even, disappear completely.
Duffert Industries has total assets of $1,050,000 and total current liabilities (consisting only of accounts payable and accruals) of $150,000. Duffert finances using only long-term debt and common equity. The interest rate on its debt is 9% and its tax rate is 40%. The firm's basic earning power ratio is 15% and its debt-to capital rate is 40%. What are Duffert's ROE and ROIC
Answer:
13.90%; 10.50%
Explanation:
Given that,
Total assets = $1,050,000
Total current liabilities = $150,000
Interest rate on debt = 9%
Tax rate = 40%
Basic earning power ratio = 15%
Debt-to-capital rate = 40%
[tex]Basic\ earning\ power\ ratio=\frac{EBIT}{Total\ assets}[/tex]
[tex]0.15=\frac{EBIT}{1,050,000}[/tex]
EBIT = 0.15 × $1,050,000
= $157,500
Total invested capital:
= Total assets - Accounts payable and accruals
= $1,050,000 - $150,000
= $900,000
Equity = 60% of the total invested capital
= 0.6 × $900,000
= $540,000
Debt = Total invested capital - Equity
= $900,000 - $540,000
= $360,000
Earning before tax:
= EBIT - Interest expense
= $157,500 - ($360,000 × 9%)
= $157,500 - $32,400
= $125,100
Net income = Earning before tax - Tax expense
= $125,100 - ($125,100 × 40%)
= $125,100 - $50,040
= $75,060
ROE:
= Net income ÷ Equity
= $75,060 ÷ $540,000
= 0.1390 or 13.90%
ROIC:
[tex]=\frac{[EBIT(1-Tax\ rate)]}{Total\ operating\ capital}[/tex]
[tex]=\frac{[157,500(1-0.4)]}{900,000}[/tex]
= 0.1050 or 10.50%
Material 1 costs $7 a pound, material 2 costs $5 a pound, and labor costs $15 per hour. Product A sells for $101 a unit, product B sells for $67 a unit, and product C sells for $97.50 a unit. Each week there are 300 pounds of material 1; 400 pounds of material 2; and 200 hours of labor. Also, there is a weekly demand of at least 10 units of product C each week. Formulate the given problem scenario as a linear program, and solve the problem using Microsoft Excel Solver. For the formulation, provide a complete description of the decision variables used along with their units and also label the constraints mentioned in the problem as completely as possible. Also, the Excel set-up should provide clearly labeled values used for the decision variables, constraints, and objective function.
Answer:
Some answers are attached below
Explanation:
We need to maximize profit -
Selling prices for A,B,C are given; Costs of materials 1,2 and labor are given.
Also given is that 1 unit of each product A,B,C requires certain units of material 1, material 2 and labor based on the table provided.
Profit for 1 unit of A = Selling Price - Cost = 101 - [(7*3)+(5*2)+(15*4)] = 10 $
Profit for 1 unit of B = Selling Price - Cost = 67 - [(7*1)+(5*4)+(15*2)] = 10 $
Profit for 1 unit of C = Selling Price - Cost = 97.5 - [(7*5)+(5*0)+(15*3.5)] = 10 $
LP Formulation
Maximize profit Z = 10A+10B+10C
subject to Constraints
3A+B+5C<=300 ----> Material 1 constraint
2A+4B<=400 ---->Material 2 constraint
4A+2B+3.5C <=200 ----->Labor
C>=10 -----> Product C Demand constraint
A,B,C>=0
Below is the solver solution and formulation table from Excel -
Maximum profit = 925 $
The question involves formulating a linear programming problem to maximize profit by choosing production numbers for three products, constrained by available materials, labor, and demand. Additionally, it asks to determine the best production method based on various costs of labor and capital. The optimal decision-making strategy is determined by using Microsoft Excel Solver for the first task and a cost comparison for the second.
Explanation:The scenario presents a linear programming problem with the objective of maximizing profit by deciding how many units of products A, B, and C to produce weekly. For this purpose, we must define decision variables such as XA, XB, and XC to represent the numbers of products A, B, and C produced. We incorporate constraints based on material usage, labor hours, and demand. For material 1, the constraint would be 7XA + 7XB + 7XC ≤ 300, considering the cost of material per unit. Correspondingly, we calculate constraints for material 2 and labor, considering their costs and weekly availability.
Using Microsoft Excel Solver, we set up the objective function to maximize profit, which is 101XA + 67XB + 97.50XC. We input the constraints for material 1, material 2, labor, and the minimum production requirement for product C into Solver. After running Solver, we obtain the optimal quantities of products A, B, and C to produce to achieve maximum profit.
Regarding the best production method in the second scenario, we evaluate the cost associated with each method. For Method 1 at the cost of $100/unit of labor and $400/unit of capital, the cost would be (50 units of labor * $100) + (10 units of capital ×$400). We compare the calculated costs similarly for Methods 2 and 3. The method with the lowest total cost will be the most economical option. If the cost of labor rises to $200/unit, we recalculate the total costs for each method using the new cost of labor, and again select the method with the lowest cost.
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Vistakon, the maker of Acuvue brand contact lenses, is working on a new product launch. They are best known for their Acuvue 2 contact lenses, but are planning to launch Acuvue 3, which will provide 40% more moisture than Acuvue 2. The extra moisture will make the lenses more comfortable and cause less irritation. Vistakon has been in the new product planning process for a year. Currently, they are trying to determine the cannibalization rate of Acuvue 3. They believe that 30% of Acuvue 3 sales will come from Acuvue 2. Which stage of the new product planning process are they in?
a. Business Analysis
b. Concept Testing
c. Sales Strategy
d. Feasibility Screen
e. New Product Strategy
Answer:
a. Business Analysis
Explanation:
Business analysis is the fourth stage a business undertakes when they are developing a product. It is at this stage that financial projections are made to see how feasible the product will be in the market. Marketing strategies are developed to effectively drive sales of the new product.
In this stage there is definition of the different requirements that needs to be met to achieve business goals and objectives.
Vistakon, the maker of Acuvue brand contact lenses, is working on a new product launch of Acuvue 3, which will provide 40% more moisture than Acuvue 2. They are projecting that 30% of Acuvue 3 sales will come from Acuvue 2.
Answer:
a. Business Analysis
Explanation:
Business analysis is a step in the different steps of a new product development process where the business attractiveness of the product is evaluated. This involves reviewing the sales, costs and profit projections for the new product.
Vistakon is trying trying to determine the cannibalization rate of Acuvue 3, this means they are trying to determine the percentage of acuvue 3's sales that represents a loss of sales of Acuvue. This therefore indicates they are reviewing the sales projections of Acuvue 3, which is a process of Business analysis.
Dave's Duds reported cost of goods sold of $1,600,000 this year. The inventory account increased by $210,000 during the year to an ending balance of $455,000. What was the cost of merchandise that Dave's purchased during the year? Multiple Choice $1,810,000. $1,390,000. $1,145,000. $2,055,000.
Answer:
$1,810,000
Explanation:
Given that,
Cost of goods sold = $1,600,000
Inventory increases by = $210,000
Ending balance in inventory = $455,000
Opening Balance of Inventory:
= Ending balance in inventory - Inventory account increased Compare to Beginning
= $455,000 - $210,000
= $245,000
Cost of Inventory purchased:
= Cost of Goods Sold + Ending Balance of Inventory - Opening Balance of Inventory
= $1,600,000 + $455,000 - $245,000
= $1,810,000
The Adjusted Trial Balance section of the worksheet for Van Zant Janitorial Supplies follows. The owner made no additional investments during the year. Accounts Debit Credit Cash $ 18,900 Accounts Receivable 60,100 Allowance for Doubtful Accounts $ 150 Merchandise Inventory 186,500 Supplies 7,170 Prepaid Insurance 3,090 Equipment 51,300 Accumulated Depreciation—Equipment 18,100 Accounts Payable 9,000 Social Security Tax Payable 1,420 Medicare Tax Payable 340 Steven Van Zant, Capital 278,700 Steven Van Zant, Drawing 74,300 Income Summary 180,300 186,500 Sales 774,500 Sales Returns and Allowances 14,700 Purchases 487,200 Freight In 5,700 Purchases Returns and Allowances 8,800 Purchases Discounts 5,600 Rent Expense 34,100 Telephone Expense 6,270 Salaries Expense 123,440 Payroll Taxes Expense 12,000 Supplies Expense 6,900 Insurance Expense 1,590 Depreciation Expense—Equipment 8,400 Uncollectible Accounts Expense 1,150 Totals $ 1,283,110 $ 1,283,110 Prepare a postclosing trial balance for the firm on December 31, 2019.
Answer:
[tex]\left[\begin{array}{ccc}Account&DEBIT&CREDIT\\$Cash&18,900&-\\$Account\: Receivable&60,100&\\$Allowance \: doubful \: accounts&&150\\$Inventory&186,500&\\$Supplies&7,170&\\$Prepaid Insurnace&3,090&\\$Equipment&51,300&-\\$Acc \: Dep \: Equipment&-&18,100\\$Accounts \: Payable&&9,000\\$SS \: tax \: payable&&1420\\$Medicare \: tax \: payable&&340\\$Capital&&298,050\\&327,060&327,060\\\end{array}\right][/tex]
Explanation:
The sales, expenses, income summary and drawings accounts will be closed therefore will not be part of the post-closed trial balance.
Thew capital Account will suffer the net change of all these account thus, we can list the assets and liabilities and then, solve for Capital by the difference:
Assets = Laibilities + Equity
327,060 = 150 + 18,100 + 9,000 + 1,420 + 340 + Capital
Capital = 327,060 - (150 + 18,100 + 9,000 + 1,420 + 340)
Capital = 298,050
The postclosing trial balance is prepared after closing entries are made and includes permanent accounts such as assets, liabilities, and capital. It lists the final balances for these accounts and ensures the books are balanced entering the new fiscal year.
To prepare a postclosing trial balance for Van Zant Janitorial Supplies on December 31, 2019, you would list only the permanent accounts that will carry their balances into the next fiscal year. These accounts include asset, liability, and capital accounts after the temporary accounts (revenues, expenses, income summary, and owner's drawing) have been closed to the capital account. The postclosing trial balance includes:
Cash
Accounts Receivable
Allowance for Doubtful Accounts
Merchandise Inventory
Supplies
Prepaid Insurance
Equipment
Accumulated Depreciation—Equipment
Accounts Payable
Social Security Tax Payable
Medicare Tax Payable
Steven Van Zant, Capital
Each account balance is taken from the adjusted trial balance and input into either the debit or credit column as appropriate. The final debit and credit totals should match, indicating that the books are in balance following the closing process.
Consider a game in which three players must decide how much to contribute to fund a holiday party. Each player i ∈ {1, 2, 3} selects a contribution level xi ∈ [0, 2] at personal cost x 2 i . The party yields to each player a benefit of x1 +x2 +x3 +x1x2x3. This, player is payoff is x1 + x2 + x3 + x1x2x3 − x 2 i .
Answer:
Hi,
What is your question exactly in this. :)
Final answer:
The question and examples provided revolve around game theory and probability within economics, focusing on decision-making and the balance between self-interest and fairness at the college level.
Explanation:
The subject matter being discussed in the question involves a variety of economic and mathematical concepts which are related to game theory, probability, and the study of public goods. While the examples cover multiple topics, they all circle back to the theme of economic decision-making and strategic interaction between different agents within various scenarios, such as allocating funds for a holiday party, contributing to a public good, deciding on an offer in an ultimatum game, and calculating expected outcomes in games of chance.
Experimental data from these games shows that participants often consider fairness alongside their personal gain. The question points out that human behavior in these situations deviates from the purely rational, self-interested models that traditional economic theories might predict.
In the context of the provided examples, we see a mix of altruism, social consequences, and the overarching notion of equilibrium play out, posing an interesting examination of how individuals might behave in real-world situations. These concepts are key in understanding strategic interactions in economics, which is often a part of college-level curriculum.
A firm's net working capital and all of its expenses vary directly with sales. The firm is operating currently at 96 percent of capacity. The firm wants no additional external financing of any kind.
1. Which one of the following statements related to the firm's pro forma statements for next year must be correct?
A. the firm cannot exceed its internal rate of growth.
B. The maximum rate of sales increase is 4 percent.C. The projected owners' equity will equal this year's ending equity balanceD. Total liabilities will remain constant at this year's value.E. Fixed assets must remain constant at the current level.
Answer:
A. the firm cannot exceed its internal rate of growth.
Explanation:
The internal growth rate is the highest level of growth that a business can achieve without any external financing. It is the level of business operations that the business can maintain on its own, and without issuing equity to gain funding.
The firm's working capital and expenses will vary directly with sales revenue.
This is a good measure of how start-ups can survive without outside funding.
Internal growth is used by businesses to maximise output from use of their processes. For example increasing efficiency of a companie's machinery to increase output.
If a firm wanted to know whether the demand for its product was elastic, unit elastic, or inelastic, then the firm could A. not do anything as there is no way to find an elasticity value. B. survey competitors and ask them what they think demand elasticity for the product is. C. change price a little bit and observe what happens to total revenue. D. talk to its customers.
Answer:
Option C, if a firm wanted to know whether the demand for its product was elastic, unit elastic or inelastic, then the firm could CHANGE PRICE A LITTLE BIT AND OBSERVE WHAT HAPPENS TO TOTAL REVENUE.
Explanation:
Price elasticity of demand measures the responsiveness of demand after a change in a product's own price.
Demand is considered elastic when the absolute value of price elasticity is higher than 1 which means it is highly responsive to change in price.
Demand is inelastic when the value of price elasticity is less than 1 which means it is unresponsive to change in price.
Demand is unit elastic when value of elasticity is equal to 1 which means demand remains the same.
Therefore, the option that best suits the question is option C, the firm can know if demand is elastic, inelastic or unit elastic by CHANGING PRICE A LITTLE BIT AND OBSERVE WHAT HAPPENS TO TOTAL REVENUE.
Which of the following describes the degree to which a consumer perceives a new product as providing superior benefits? A. Relative advantage B. Trialability C. Compatibility D. Complexity E. Observability
Answer:
The correct answer is letter "A": Relative advantage.
Explanation:
American Professor E.M. Rogers (1931-2004) in his book "Diffusion of Innovation" (1962) defined Relative Advantage like the degree to which a consumer observes a new product enhanced than its substitute. Nowadays the concept of relative advantage denotes the degree in which customers perceive the benefits of a new product higher than existing competitors.
The adoption of new products will rely on the relative advantage they can provide to consumers.
Upton Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, ships them to its chain of retail stores, and has a staff to advise customers and help them set up their new computers. Upton's balance sheet as of December 31, 2013, is shown here (millions of dollars):
Cash $3.5 Accounts payable $9.0
Receivables 26.0 Notes payable 18.0
Inventories 58.0 Line of credit 0
Total current assets $87.5 Accruals 8.5
Net fixed assets 35.0 Total current liabilities $35.5
Mortgage loan 6.0
Common stock 15.0
Retained earnings 66.0
Total assets $122.5 Total liabilities and equity $122.5
Sales for 2013 were $375 million and net income for the year was $11.25 million, so the firm's profit margin was 3.0%. Upton paid dividends of $4.5 million to common stockholders, so its payout ratio was 40%. Its tax rate is 40%, and it operated at full capacity. Assume that all assets/sales ratios, spontaneous liabilities/sales ratios, the profit margin, and the payout ratio remain constant in 2014. Do not round intermediate calculations.
If sales are projected to increase by $70 million, or 18.67%, during 2014, use the AFN equation to determine Upton's projected external capital requirements. Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to two decimal places.
Using the AFN equation, determine Upton's self-supporting growth rate. That is, what is the maximum growth rate the firm can achieve without having to employ nonspontaneous external funds? Round your answer to two decimal places.
Use the forecasted financial statement method to forecast Upton's balance sheet for December 31, 2014. Assume that all additional external capital is raised as a line of credit at the end of the year and is reflected (because the debt is added at the end of the year, there will be no additional interest expense due to the new debt).
Assume Upton's profit margin and dividend payout ratio will be the same in 2014 as they were in 2013. What is the amount of the line of credit reported on the 2014 forecasted balance sheets? (Hint: You don't need to forecast the income statements because you are given the projected sales, profit margin, and dividend payout ratio; these figures allow you to calculate the 2014 addition to retained earnings for the balance sheet.) Round your answers to the nearest cent.
Upton Computers
Pro Forma Balance Sheet
December 31, 2014
(Millions of Dollars)
Cash $
Receivables $
Inventories $
Total current assets $
Net fixed assets $
Total assets $
Accounts payable $
Notes payable $
Accruals $
Total current liabilities $
Mortgage loan $
Common stock $
Retained earnings $
Total liabilities and equity $
Answer:
AFN (Additional Funds needed) is $ 11.59 Million, Growth rate is 6.87 %.
Explanation:
1) Additional Funds Needed or AFN can be calculated as below=
AFN = (Total Assets / Previous year sales) x Change in Sale -( Liabilities affected by sales / Previous year sales) x Change in Sale - (Projected net income x Retention ratio ) ----- (a)
According to given data in question
Total Assets= 122.5 million
Change in Sales = 70
Liabilities affected by sales = 17.5
Previous year sales = 375
Projected net income = 445
Putting the above values in equation (a)
AFN = (122.5 / 375) x 70 -( 17.5 / 375) x 70 - 445 x 0.030 x 0.60
AFN = 11.59 million
2) Growth rate : Growth rate formula is given below,
Growth rate = (Total Assets x g) - (Liabilities affected by sales x g ) - Previous year sales ( 1 +g) x 0.3 x 0.60
Growth rate = 6.87 %
3) Proforma Balance Sheet for Upton Computer is :
Cash 4.15 Million
Accounts Receivable 30.85 Million
Inventories 68.83 Million
Total Current Assets 103.84 Million
Net Fixed Assets 41.53 Million
Total Assets 145.37 Million
Line of Credit-AFN 11.59 Million
Accounts Payable 18 Million
Accruals 10.09 Million
Total Current Liabilities 50.36
Mortgage Loan 6 Million
Common Stock 15 Million
Retained Earning 74.01 Million
Total Current Liabilities & Equity --- 145.37 Million
The Pro-forma balance sheet is a table of forecasting that can assist your company in managing working capital now for better future performance.
It can guarantee that there will be no surprises in the future when it comes to paying your expenses, receiving investment returns, and maintaining your products in stock.
AFN (Additional Funds needed) is $ 11.59 Million, the Growth rate is 6.87 %.
1) Calculation of the additional funds are:
AFN = [tex]\frac{\text{Total Assets}}{\text{Previous year sales}} \times \text{Change in Sale}[/tex] ---[tex]\frac{\text{Liabilities affected by sales}}{\text{Previous year sales}} \times\text{Change in Sale}[/tex] ---[tex](\text{Projected net income} \times \text{Retention ratio} )[/tex]
According to the given data in question
Total Assets= 122.5 million
Change in Sales = 70
Liabilities affected by sales = 17.5
Previous year sales = 375
Projected net income = 445
AFN = [tex]\frac{122.5}{375} \times 70 -\frac{17.5}{375} \times 70 - 445 \times 0.030 \times 0.60[/tex]
AFN = 11.59 million
2) Growth rate = [tex](\text{Total Assets} \times g) - (\text{Liabilities affected by sales} \times g ) - \text{Previous year sales} ( 1 +g) \times 0.3 \times 0.60[/tex]
Growth rate = 6.87 %
The pro-forma balance sheet has been attached below.
To know more about the calculation of the growth rate and the balance sheet, refer to the link below:
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Determine the number of cycles per day and the production quantity per cycle for this set of vehicles:
Product Daily Quantity
A 10
B 6
C 2
D 8
Number of cycles
Use the sequence A-B-C-D.
Product Daily Quantity Units per cycle
A 2
B 3
C 4
D 5
Answer:
Using the sequence A-B-C-D the production per cycle is A ( 1 )-B (1 )-C( 2 )-D ( 2 )
Explanation:
See the picture attached
Why might credentialism be an obstacle to growth? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box. Degrees become more important than the knowledge learned. unanswered Credentials cannot be validated. unanswered The result is an underutilization of credentials. unanswered Everyone can get a credential. unanswered People who have the ability but not the money to get a credential are kept from higher-quality jobs, which reduces growth. unanswered
Credentialism can hinder growth by excluding capable individuals who can't afford a degree, promoting inequality, and causing inefficient resource allocation. However, ensuring equal opportunities to education can mitigate its negative effects.
Explanation:Credentialism, the emphasis on certificates or degrees to show that a person has a skill or met certain qualifications, can be an obstacle to growth in several ways. The focus on degrees over actual knowledge or skill can exclude capable individuals who don't have the means to earn a degree, which can lead to an underutilization of potential human capital and reduce growth.
Further, the practice of credentialism can exacerbate inequality, since the cost of earning a degree has become prohibitive for many people, but employers often use degrees as a pre-screening tool. Finally, the overemphasis on credentials can lead to an inefficient allocation of resources, as individuals spend time and money on formal education that might not be necessary for their careers.
However, the solution might not be to do away with credentialism, but rather to ensure that our educational institutions provide everyone with the opportunity to gain the skills and knowledge they need to succeed, regardless of their ability to pay.
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The following transactions are February 2013 activities of Swing Hard Incorporated, which offers indoor golfing lessons in the northeastern United States. Swing Hard paid $4, 750 to its golf instructors for the month of February. Swing Hard paid $1, 750 for electricity used in the month of January. Swing Hard received an electricity bill for $800 for the month of February, to be paid in March. Prepare the journal entry for the above transaction (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Answer:
The journal entries are as follows:
(i) Wage Expense A/c Dr.
To Cash A/c
(To record the wages paid to the instructors)
(ii) Electricity expense A/c Dr. $1,750
To Accounts payable $1,750
(To record the electricity expense)
(iii) Accounts payable A/c Dr. $1,750
To Cash $1,750
(To record the payment of electricity expense)
(iv) Electricity expense A/c Dr. $800
To Accounts payable $800
(To record the electricity expense)
Final answer:
The student's query is on how to record transactions in journal entries, involving accounts such as Accounts Receivable, Service Revenue, Membership Expense, Cash, Amortization Expense, Accumulated Amortization, and Contribution Revenue.
Explanation:
The student's question involves preparing journal entries for transactions related to Swing Hard Incorporated. Since they have provided examples involving Treehouse transactions, we can use these as analogies to demonstrate how to record such transactions in accounting.
Transaction 9: When Treehouse delivers an outreach program and sends an invoice, the journal entry would be to debit Accounts Receivable and credit Service Revenue for the amount invoiced.Transaction 14: Recording quarterly professional association membership expenses, assuming the annual dues are $1,500, would involve debiting Membership Expense and crediting Cash or Accounts Payable for one-quarter of the annual amount.Transaction 16: For amortization expense on a software license, the entry would be a debit to Amortization Expense and a credit to Accumulated Amortization.Transaction 3: Paying for staff membership renewals would involve a debit to Membership Expense and a credit to Cash.Transaction 26: If labor and materials for a project are donated, Treehouse would debit an asset account for the fair market value of the services and materials and credit Contribution Revenue or a similar account.Transaction 22: For expenses related to attending a conference, the journal entry would debit an Expense account and credit Cash; if these are reimbursed, an additional entry to debit Cash and credit the expense account would be needed.Each of these transactions would be recorded in their respective accounts according to double-entry accounting, where each entry has a corresponding and opposite entry.
a. The company provided $2,200 in services to customers that are expected to pay the company sometime in January following the company's year-end.
b. Wage expenses of $1,200 have been incurred but are not paid as of December 31.
c. The company has a $5,200 bank loan and has incurred but not recorded an 8% interest expense of $416 for the year ended December 31. The company will pay the $416 interest in cash on January 2 following the company's year-end.
d. The company contracted with a firm for lawn services to be provided at a monthly fee of $520 with payment occurring on the 15th of the following month. Payment for December services will occur on January 15 following the company's year-end.
e. The company has earned $220 in Interest revenue from investments for the year ended December 31. The interest revenue will be received on January 15 following the company's year-end.
f. Salary expenses of $920 have been earned by supervisors but not paid as of December 31.
Prepare year-end adjusting journal entries as of December 31, 2017, for each of the above separate cases.
Answer:
Year end journal entries are given below in explanation
Explanation:
a. Company provided service to customer which means that company has earned revenue
Account Dr Cr
Accounts Receivable 2200
Sales/Revenue 2200
b. Wages expense have incurred but are not paid yet. Thus, its Liability should be booked.
Wages Expense 1200
Wages payable / Liability 1200
c. The company has taken loan from the bank. Interest due on the loan is 416 but are not paid yet.
Interest Expense 416
interest Payable 416
d. The company had contract for lawn service. To book the expense of lawn service
Lawn Service Expense 520
Lawn Service Payable 520
e. The company has also made some investment. $ 220 is earned on that investment. to book the non operating income
Interest revenue receivable 220
Interest revenue - Non operating income 220
f. Salaries of Supervisor is due on 31 st December but are not paid yet.
Salaries Expense 920
Salaries payable 920
Answer:
You have to identify which account will affect each transaction and if the nature is Debit or Credit:
a. Sales (C) $ 2,200 and Accounts Receivable (D) $ 2,200
b. Wages expenses (D) $ 1,200 and Wages payables (C) $ 1,200
c. Interes expenses (D) $ 416 and Interes payable (C) $ 416
d. Sales (C) $ 520 and Accounts Receivable (D) $ 520
e. Interes income (C) $ 220 and Other Accounts Receivable (D) $ 220
f. Salary expenses (D) $ 920 and Salaries payables (C) $ 920
n the Baumol-Tobin model, if the nominal interest rate is 1%, the consumer's annual income is $36000, and every trip to the bank costs $20, then it is optimal for the consumer to visit the bank ___ times a year. 2 3 4 5
Answer:
In the Baumol-Tobin model, if the nominal interest rate is 1%, the consumer's annual income is $36000, and every trip to the bank costs $20, then it is optimal for the consumer to visit the bank three times a year.
Explanation:
The optimal number of visit to banks = (iY/2F)0.5
i = 1% = 0.01
Y = $36000
F = $20.
The optimal number of visit to banks = (iY/2F)0.5
The optimal number of visit to banks = (0.01 * 36000 / 2* 20)0.5
The optimal number of visit to banks = (9)0.5
The optimal number of visits to banks = 3.
it is optimal for the consumer to visit the bank 3 times a year.
The owner of a two-acre commercial site insists that her property has appreciated by at least 5% per year since she bought it four years ago. As the appraiser, you are asked to factor this into the appraisal or refute her contention. Research in this market revealed the following sales and reseals of comparable properties: Date Price Annual Appreciation Rate 1 Price 1 month ago
Answer:
Answer is 1.53%.
Explanation:
The annual depreciation rates are:
1 = 1.6%
2= 2.8 %
3= 0.12 %
4=1.6 %
(These are calculated through data given in the question).
Now the average annualized reconciles appreciation rate on straight line basis = [tex]\frac{1.6+1.6+2.8+0.12}{4}[/tex]
= [tex]\frac{6.12}{4}[/tex]
= 1.53 %
Hence the correct answer for the question is 1.53%.
Consolidation Eliminating Entries, Date of Acquisition and Two Years Later Plaza Hotels acquired a 90 percent interest in Stardust Casinos on January 1, 2020 for $51,100,000. The fair value of the 10 percent noncontrolling interest at the date of acquisition was $2,900,000. Stardust’s date-ofacquisition reported net assets were carried at amounts approximating fair value, except for these items: • Plant and equipment, 10-year life, straight-line, is overvalued by $6,000,000. • Previously unrecorded limited-life identifiable intangibles, 4-year life, straight-line, were valued at $8,000,000. Stardust’s equity accounts at the date of acquisition were as follows: Capital stock $300,000 Retained earnings 1,650,000 Accumulated other comprehensive income 50,000 Total $2,000,000 Stardust reports net income of $4,000,000 and other comprehensive loss of $10,000 for 2021. Stardust reported net income of $2,800,000 and other comprehensive income of $25,000 in 2020. Stardust did not declare any dividends in either year. Goodwill from this acquisition is impaired by $200,000 during 2021, but was not impaired in 2020. Required a. Calculate the original goodwill for this acquisition and its allocation to controlling and noncontrolling interests. In what ratio is goodwill allocated between controlling and noncontrolling interests? Enter your answers in thousands ($51,100,000 equals $51,100 in thousands). Enter your ratio answers in percentages.
Answer:
a. AT ACQUISITION DATE TOTAL Parent NCI
Capital stock 300 270 30
retained earnings 1650 1485 1650
goodwill 52050 46845 5205
investment 54000 51100 29000
b.Goodwill is allocated at 9:1 ratio
90% ; 10% given
Explanation:
The difference in these amounts is big, suspicions of error in typing amounts in the question. Even after the answer is in thousands
Original goodwill is calculated using the fair value of the consideration transferred plus the fair value of the noncontrolling interest, less the adjusted net assets at acquisition. It amounted to $50,000,000 for the Plaza Hotels acquisition of Stardust Casinos, with allocations of $45,000,000 to the controlling interest and $5,000,000 to the noncontrolling interest, following a ratio of 90:10.
Calculation of Original Goodwill and Its Allocation
The calculation of original goodwill in the context of a business combination, such as an acquisition, takes into account the fair value of the consideration transferred, the fair value of the noncontrolling interest, and the fair value adjustments for identifiable net assets of the acquire.
When Plaza Hotels acquired a 90 percent interest in Stardust Casinos, the goodwill was calculated based on the acquisition price, the fair value of the noncontrolling interest, and fair value adjustments.
The original purchase price for the 90% interest was $51,100,000, and the fair value of the noncontrolling interest for the remaining 10% was $2,900,000, leading to a total fair value of the business of $54,000,000 ($51,100,000 + $2,900,000).
The book value of Stardust's equity was $2,000,000, but adjustments were needed for items not reflected at fair value.
Plant and equipment were overvalued by $6,000,000 and needed to be reduced, while the previously unrecorded intangible assets valued at $8,000,000 were added.
Adjusted net assets of Stardust at acquisition were:
Book value of equity: $2,000,000
Less overvaluation of plant and equipment: $6,000,000
Addition for intangibles not previously recorded: $8,000,000
Adjusted net assets = $4,000,000 ($2,000,000 - $6,000,000 + $8,000,000). Original goodwill can then be calculated as follows:
Total fair value of Stardust ($54,000,000) - Adjusted net assets ($4,000,000) = $50,000,000.
This total goodwill is then allocated between the controlling and noncontrolling interests based on their ownership percentages:
Goodwill attributed to controlling interest (Plaza Hotels): 90% x $50,000,000 = $45,000,000
Goodwill attributed to noncontrolling interest: 10% x $50,000,000 = $5,000,000
The ratio of goodwill allocation between controlling and noncontrolling interests is 90:10.
Peter Company has gross property, plant and equipment totaling $1.5 million, depreciation expense this year of $250,000, and accumulated depreciation last year of $550,000. What is Peter's net property, plant and equipment?
Answer:
Peter's net property, plant and equipment is $700,000.
Explanation:
Net Property, plant, and equipment is the Carrying value of PPE. It is also known as the Book value of PPE. This is the value at which PPE is stated on the face of Statement of Financial Position.
The formula to calculate it as follows:
Cost - Accumulated Depreciation = Carrying Value
Simply put values:
1,500,000 - (250,000 + 550,000) = $700,000.
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A heavy equipment manufacturer is in talks with several other similar businesses about moving into a foreign market. Their primary goal for working together is to lower their financial risk, so they are considering a consortium. What should they know about consortia? Multiple Choice A consortium usually operates in a country where none of the participants is currently active. A consortium is a partnership between individuals rather than companies. A consortium restricts the right to hold an equity position to its majority partners. A consortium does not involve the creation of a separate legal entity. A consortium is formed mainly for executing short-term projects.
Answer:
A consortium usually operates in a country where none of the participants is currently active.
Explanation: