Answer:
$1,600 (Not given in the options)
Explanation:
Retained earnings is the accumulated balance of an entity's net income over the years. Change between the opening retained earnings and the closing retained earnings of an entity is due to the net income/loss for the period and amount of dividend declared and paid during the period.
Opening retained earnings + net income - dividend = closing retained earnings
850 + net income - 750 = 1800 (all amounts are in $)
net income = 1800 + 750 - 850
= $1700
Net income is the difference between revenue and expenses.
Hence the expenses for the period
= $3,300 - $1,700
= $1,600
Say that Alland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Georgeland can produce 36 units of food per year or 18 units of clothing. Which of the following is true?
a. Georgeland has an absolute but not a comparative advantage in producing clothing.
b. Georgeland has both an absolute and a comparative advantage in producing clothing.
c. Alland has an absolute but not a comparative advantage in producing food.
d. Alland has both an absolute and a comparative advantage in producing food.
Answer:
Option (a) is correct.
Explanation:
Alland can produce 32 units of food per person per year or 16 units of clothing per person per year:
Opportunity cost of producing a unit of food = (16 ÷ 32)
= 0.5 units of clothing
Opportunity cost of producing a unit of clothing = (32 ÷ 16)
= 2 units of food
Georgeland can produce 36 units of food per year or 18 units of clothing:
Opportunity cost of producing a unit of food = (18 ÷ 36)
= 0.5 units of clothing
Opportunity cost of producing a unit of clothing = (36 ÷ 18)
= 2 units of food
Therefore, the Georgeland has a absolute advantage in producing both the goods because it can produce more quantity of both the goods with the same resources as Alland. But the Georgeland has not having comparative advantage in producing either of the goods.
Jeremy is an effective leader who is capable of helping his subordinates complete their tasks. However, he is considered intimidating by some of his team members and is often unable to boost the group's morale. Jeremy feels that since his strengths are task-oriented, management should place him as the leader of team members who need task-related guidance.
Jeremy is a strong believer of which leadership theory or approach?
a. Fiedler's contingency theory of leadership effectiveness
b. Leader-member exchange theory
c. Normative decision model
d. Path-goal theory of leadership effectiveness
Answer:
Fiedler's contingency theory of leadership effectiveness.
Explanation:
Fiedler's contingency theory of leadership effectiveness states that one's effectiveness as a leader is determined by how leadership can match the situation at hand.
There is no single best way to lead, but leadership style is determined by the situation.
According to Fiedler's contingency theory of leadership effectiveness, leadership style is fixed and leaders will need to be put into situations that best matches their style.
The two important factors to consider in thos theory are leadership style and situational favourableness.
Final answer:
Jeremy is a proponent of Fiedler's contingency theory of leadership, emphasizing that his task-oriented leadership style is most effective when matched with suitable situational favorableness, according to the theory's framework.
Explanation:
Jeremy believes his strengths as a task-oriented leader make him most suitable for managing team members who require task-related guidance, but he also recognizes that his style may be intimidating and not always conducive to boosting team morale. Given this belief, Jeremy is a strong supporter of Fiedler's contingency theory of leadership effectiveness. This theory posits that the effectiveness of a leader's style (whether task-oriented or people-oriented) is contingent upon the level of situational favorableness. According to this theory, highly task-oriented leaders like Jeremy are most effective in situations that are either highly favorable or highly unfavorable. People-oriented leaders, on the other hand, tend to thrive in situations with moderate favorableness.
Fiedler's theory contrasts with other leadership theories, such as the Path-Goal theory, which suggests that leaders should adapt their style to the motivation and abilities of their employees, or Vroom and Yetton's normative model, which is more about the level of participation in decision making. Given Jeremy's self-assessment, he supports an approach where his leadership style is suited to specific situations rather than adapting his style to the situation, aligning with Fiedler's model.
zappos seems to be well-positioned to have a competitive advantage over other online retailers. what challenges discussed in chapter 1 pose the biggest threat to zappos ability to maintain and enhance its competitive position? how can hrm practice help zappos meet these challenges
Answer:
Despite the accomplishments of Zappos, there are few challenges facing the company. One of the challenges is the economic and financial recession facing the world. This will lead to downsizing the company's employees and it will affect the competitive position of the company. The second challenge facing the company is that of acquisition. It is essential for the company to psychologically prepare the employees during the recession by organizing meetings and seminars to discuss the challenges and proffer solutions.
Explanation:
Despite the accomplishments of Zappos, there are few challenges facing the company. One of the challenges is the economic and financial recession facing the world. This will lead to downsizing the company's employees and it will affect the competitive position of the company. The second challenge facing the company is that of acquisition. It is essential for the company to psychologically prepare the employees during the recession by organizing meetings and seminars to discuss the challenges and proffer solutions.
Kingbird, Inc. has the following information available for accruals for the year ended December 31, 2019. The company adjusts its accounts annually. 1. The December utility bill for $485 was unrecorded on December 31. Kingbird paid the bill on January 11. 2. Kingbird is open 7 days a week and employees are paid a total of $3,990 every Monday for a 7-day (Monday–Sunday) workweek. December 31 is a Thursday, so employees will have worked 4 days (Monday, December 28–Thursday, December 31) that they have not been paid for by year-end. Employees will be paid next on January 4. 3. Kingbird signed a $51,600, 5% bank loan on November 1, 2018, due in 2 years. Interest is payable on the first day of each following month. 4. Kingbird receives a fee from Pizza Shop next door for all pizzas sold to customers using Kingbird’s facility. The amount owed for December is $340, which Pizza Shop will pay on January 4. (Hint: Use the Service Revenue account.) 5. Kingbird rented some of its unused warehouse space to a client for $6,840 a month, payable the first day of the following month. It received the rent for the month of December on January 2.
Answer:
a-Dec-31. Dr Utility expense 485
Cr Utility bills payable 485
b-Jan-11. Dr Utility bills payable 485
Cr Cash 485
c-Dec-31. Dr Salary expense 3990
Cr Salary payable 3990
d-Dec-31. Dr bank 51600
Cr Loan payable 51600
e-Dec-31 Dr Interest expense 215
Cr interest payable 215
f-Dec-31 Dr Account receivable 340
Cr Service revenue account 340
g-Dec-31. Dr Cash 6840
Cr Advance Rent 6840
Explanation:
a-Utility expense incurred for the m/o Dec will be paid in Jan.
c- Salaries of 3990 will be paid on Jan of 4 days.
e-Interest expense for the m/o Dec will be (51600*5%=2580/12=215.
f-The service fee is receivable which will be paid on Jan.
g- Advance rent is received from client.
Kingbird has to adjust its accounts for unrecorded, uncollected, and unpaid items at the end of its accounting period, as the company follows the accrual basis of accounting. These adjustments include notations for utilities, wages, loan interest, neighboring shop fees, and rent revenue.
Explanation:To account for the different transactions Kingbird, Inc. had, we need to make proper adjustments in the financial statements. Every transaction is recorded differently based on its nature.
For the December utility bill of $485, it must be accrued as an expense in 2019 as the company used the utilities in this year, regardless of the payment date. A liability (accrued utility) will be recorded on December 31, 2019 and it will be cleared when payment occurs.The employee wages worth $3,990 for 7 days should be divided by 7 to get the daily wage and then multiplied by 4, being the number of unpaid days in 2019. This amount will be reported as wages expense for 2019 and the company will have a wages payable liability until it will be cleared when payment occurs. For the bank loan, interest for one year ($51,600 * 5%) will be accrued as Interest expense. This will increase the loan liability amount.The fee from the Pizza Shop for $340 should be recognized as revenue in 2019 because the service was provided in 2019. Finally, the rent revenue for the warehouse space should be recognized in December because the service was provided in this period.Learn more about Financial Statement Adjustment here:https://brainly.com/question/32572095
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The normal application of a p-chart is in______________.
a. acceptance sampling by attributes.
b. process sampling by attributes.
c. process capability ratio computations.
d. process sampling by variables.
e. acceptance sampling by variables.
The normal application of a p-chart is in process sampling by attributes.
Option b
Explanation:
p-chart can be defined as a form of control chart that is used to observe the proportion of nonconforming units (that is the ratio of number of nonconforming units to n, the sample size).
The p-chart depicts the changes or alterations in the process over the specific time. The control limits for this chart type are as follows,
Binomial distribution is the base for p-chart and it requires the assumptions given below:
The possibility of nonconformity is the same for each unit; Each unit is independent of its own predecessors or successors; The procedure for inspection is same for each and every sample.An employer has a duty to indemnify, or compensate an employee for any losses suffered as a result of authorized legal acts that the employee performs under the employment agreement.
(A) True
(B) False
Answer:
TRUE
Explanation:
An employer has a duty to indemnify, or compensate an employee for any losses suffered as a result of authorized legal acts that the employee performs under the employment agreement for example if an employee hand was accidentally cut off my a production machine this simply means that employee have an injury in the cost of performing is duties therefore the employer has to compensate the employee for the loss suffered as a result of the authorized legal acts that the employee performs under the employment agreement.
Edna is a 25-year-old employee who is thinking about opening a retirement account. When she checked, she found that her employer does not sponsor investment programs for their employees. What is the most reasonable step that Edna should take next to start saving for retirement?
Answer:Go to a broker or bank to open up an IRA account which offers an individual valuable tax benefits for people who want to save for retirement.
Explanation: Since Edna company doesn't offer any tax retirement benefits to its employees, in which they would have offered her a 401(k)s which is usually offered by employers. An IRA will help her have access to various investments Adnan individual retirement saver.
4.Suppose you win $10 million in a lottery. You have a choice of how you will receive your winnings. The first choice is to receive a certain lump sum today. The second choice is to receive a certain amount at the end of five years. How will you evaluate your choices to make your decision
Answer:
Explanation:
You have to consider interest rates and tax situations. Payments made in lump sum would attract higher interest rates than payments made in part, this will have an effect on the net present value.
If cash proceeds from payments are meant for Investments, then a lump sum payment is preferable.
To evaluate your choices when receiving lottery winnings, consider the concept of present discounted value. Calculate the present value of future payments to determine their current worth. Compare the present value to the lump sum offered today to make your decision.
Explanation:When evaluating your choices to make a decision about receiving your lottery winnings, it is important to consider the concept of present discounted value. Present discounted value helps determine the current value of future payments by taking into account the time value of money. In this case, you have the option to receive a lump sum today or a certain amount at the end of five years.
To evaluate your choices, you can calculate the present discounted value of the future payment using an appropriate discount rate. The discount rate reflects the opportunity cost of receiving the payment later instead of today. If the present discounted value of the future payment is higher than the lump sum offered today, it may be more advantageous to choose the future payment. On the other hand, if the present discounted value is lower, it would be better to opt for the lump sum.
For example, suppose the discount rate is 5% and the future payment after five years is $12 million. To calculate the present discounted value, you would divide the future payment by (1 + 0.05)^5. If the resulting value is higher than $10 million, it would make more sense to choose the future payment. If it is lower, the lump sum would be the better option.
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Richard is the owner of a very popular burger joint in his locality. He knows that his burger joint's location and excellent customer service give him a competitive advantage over other burger joints. He is conducting a research to understand if there are other burger joints that provide the same sort of services that his joint does. He also intends to know if his competitors have the financial means to do so and if they seem to care about what his joint offers. In the context of the components of resource-based analysis, Richard is trying to understand if his product or service is _____.
Final answer:
Richard is determining if his burger joint's competitive advantages, such as location and customer service, are imitable by competitors, which is a key aspect of resource-based analysis in business. This understanding helps in maintaining a sustainable market position in the presence of monopolistic competitors.
Explanation:
Richard is engaging in a competitive analysis to determine if his burger joint's offerings are imitable by his competitors. This involves evaluating whether other burger joints not only provide similar services but also whether they have the financial capability and interest to replicate what his joint offers. The core of this analysis is to understand if his competitive advantage can be easily imitated or if it is a unique, sustainable asset in the market.
In the context of resource-based analysis, one important aspect is assessing the producibility of a resource—it must be producible for competitors to imitate it. Additionally, the resource should be able to aid in the production of other goods or services. In his research, Richard wants to ascertain the imitability of his competitive advantages such as location and customer service, which could be a part of his overall value proposition. Understanding these dynamics will help him in forging strategies to maintain his market position against monopolistic competitors.
2. Alternative price indexes Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator. The GDP deflator for this year is calculated by dividing the using by the using and multiplying by 100. However, the CPI reflects only the prices of all goods and services . Indicate whether each scenario will affect the GDP deflator or the CPI for the United States. Check all that apply. Scenario Shows up in the... GDP Deflator CPI An increase in the price of a Waterman Industries deep-water reel, which is a commercial fishing product used for deep-sea fishing, made in the U.S., but not bought by U.S. consumers A decrease in the price of a German-made television that is popular among U.S. consumers
Answer:
The GDP deflator for this year is calculated by dividing the value of goods and services produced in the economy this year using this year's price by the value of goods and services produced in the economy this year using base year's price and multiplying by 100. However, the CPI reflects only the prices of all goods and services bought by consumers.
An increase in the price of equipment feller bencher, which is a commercial forestry machine that cuts and stacks trees, will affect GDP deflator.
A decrease in the price of the Chinese-made television that is popular among U.S. consumers will affect the CPI, that is, consumer price index.
6. Provide a concise statement about the relationship between a developing country’s emphasis on the export of traditional commodities and: (a) export earnings stability; (b) comparative advantage; (c) terms of trade.
Answer:
(a) Traditional commodities may experience higher price fluctuations.
(b) Developing countries tend to have comparative advantage in traditional commodities.
(c) The terms of trade for traditional commodities may tend to reduce over time in accordance to the Prebisch-Singer.
Explanation:
(a) Traditional commodities tend to experience fluctuations in price which will invariably lead to fluctuations in export earnings. Many developing countries concentrate on the exportation of primary products which are usually affected by shifts in supply and demand and are more price inelastic. The uncertainty caused from commodity price fluctuations can hamper economic growth and may increase poverty.
(b) Comparative advantage is the advantage a country gets by producing a good or service at a lower opportunity cost than other countries. Even though the nation may not be the best at producing that particular thing, the good or service has a low opportunity cost. Many developing countries have a comparative advantage in the production of traditional commodities because of natural endowments and low labour costs.
(c) Terms of trade is the ratio of a country's average export price to the country's average import price. For developing countries, the terms of trade for traditional commodities tends to fall with time. The Prebisch–Singer thesis proposed that the price of primary or traditional commodities reduces relative to the price of manufactured products over the long term, thereby causing deterioration in the developing economies terms of trade.
From a macro view, what do you think are two strategic change issues that most organizations are facing today? How are some organizations responding to these issues? Give examples.
Explanation:
We can cite as the two strategic issues of change that most organizations currently face, such as
1- Employee motivation.
2- Use of resources.
Currently, in the macroeconomic context, companies face important challenges in carrying out their activities. Some of these challenges are related to technological changes that are occurring more and more rapidly in the world, which means that the company's communication and integration with society is developed in a much closer and more responsible way.
The external factors that can influence the potential of companies in the short and long term, can be social problems, political challenges, social and environmental costs, legal issues, etc.
As society currently sees companies as agents responsible for promoting improvements for localities, companies now have greater responsibilities in carrying out programs and procedures that attest their corporate governance to stakeholders, seeking to comply with the best social and environmental practices, which can often be a strategic challenge, in the form of motivating employees and employing resources that are in compliance with what is required by ethical and legal issues.
Clearly establishing property rights for water ownership would result in which of the following? Choose one or more: A. incentive to maintain the property B. the tragedy of the commons C. incentive to conserve the property D. incentive to trade with others E. incentive to protect the property
Answer:
The options chosen are:
B. the tragedy of the commons;
C. incentive to conserve the property;
E. incentive to protect the property.
Explanation:
B. The tragedy of the commons- Open-access regimes can be exploited on a first-come, first-served basis, because no individual or group has the legal power to restrict access. The consequences of open access have become popularly known as what Hardin (1968) misleadingly called ‘the Tragedy of the Commons.’
C. incentive to conserve the property: In addition, clearly defining and assigning property rights should resolve environmental problems by internalising externalities and relying on incentives for private owners to conserve resources for the future.
E. The Incentive to protect the property - The incentives associated with private property rights can help conserve scarce resources: Private ownership entails penalties for premature harvesting or over-harvesting of resources. Private ownership rewards community and individual cooperation. Private ownership rewards conservation and stewardship behaviour.
A project manager is responsible for (check all that apply) solving project technical issues and team conflicts his/her client’s company stock price knowing and following rules and procedures related to the project addressing and seeking help from management on ethical issues
Answer:
A project manager is a professional in the field of project management. A project manager assumes the full responsibility of solving project technical issues and team conflicts, addressing and seeking help from management on ethical issues and knowing and following rules and procedures related to the project. All these would ensure successful completion of the project.
Answer:
a) Solving project technical issues and team conflicts
c) knowing and keeping rules and procedures related tot he project
d) addresing and seeking help form management on ethical issues.
Explanation:
First, we break down the multiple choices as follows
a) Solving project technical issues and team conflicts
b) his/her client company stock price
c) knowing and keeping rules and procedures related to the project
d) addresing and seeking help form management on ethical issues.
Solution
A project manager as the name implies is primarily responsible for the successful execution of a given project at any point in time. A project will usually involve teams, working together to achieve a common goal and as such any issues that affect the execution of the project, the synergy of the team and ethical issues relating to the project is the responsiblity of the project manager.
Based on this explanation, solving project technical issues and conflicts, knowing and keeping rules related to the project and addressing and seeking help from management on ethical issues are all related to a project and are managed by the project manager.
4. The effects of inflation Suppose Specific Automakers is considering signing a long-term contract with the union representing its workers. Specific Automakers and the union both agree that real wages should increase by 3%. Inflation is expected to be 6%, so they agree on a 9% nominal wage increase. Now, suppose inflation turns out to be higher than expected, coming in at 7%. This would the union and Specific Automakers because the real wage increase would now be .
Answer: This would WORSEN the union and BENEFITS Specific Automakers because the real wage increase would now be 2%
Explanation:
Specific Automakers is considering signing a long-term contract with the union representing its workers.
Real wages should increase by 3%
Expected inflation is 6%
Nominal wage increase is 9%
Actual inflation = 7%
Since actual inflation is greater than expected inflation, this would WORSEN the union and it is only of benefits to the automakers because this now makes real wage increase to be as calculated below leading to a redistributive cost of inflation.
= Nominal wage - Actual inflation rate
= 9% - 7%
= 2%
Anchor Company purchased a manufacturing machine with a list price of $82,000 and received a 2% cash discount on the purchase. The machine was delivered under terms FOB shipping point, and freight costs amounted to $1,600. Anchor paid $2,100 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $2,600 for the first year of operations. Based on this information, the amount of cost recorded in the asset account would be:
Answer:
Asset account would be $81,000
Explanation:
See attached picture.
Andrea Apple opened Apple Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books: Andrea invested $15,100 cash in the business in exchange for common stock. Andrea contributed $36,000 of photography equipment to the business. The company paid $3,700 cash for an insurance policy covering the next 24 months. The company received $7,300 cash for services provided during January. The company purchased $7,800 of office equipment on credit. The company provided $4,350 of services to customers on account. The company paid cash of $3,100 for monthly rent. The company paid $4,700 on the office equipment purchased in transaction #5 above. Paid $435 cash for January utilities. Based on this information, the balance in the cash account at the end of January would be:
Answer:
$ 10465
Explanation:
Cash Book can be used to get cash balance of a firm for at the end of an accounting period, with cash receipts debited 'to' & cash payments credited 'by' in Cash Book
Above Transactions Cash Book :
Debit (+) Credit (-)
To Capital 15100 By insurance 3700
To sales 7300 By rent 3100
By office equipment supplier 4700
By extra utilities 435
By balance carried down 10465
Andrea's contribution in form of 'photography equipments' ; Company purchasing office equipment on 'credit' ; Company providing services to customers on a/c i.e 'credit' : dont effect the cash in hand of firm & hence are not entered in cash book. Creditor - Office equipment, supplier later paid partially effects the cash outflow & hence is recorded.The balance left from adding all cash inflows, subtracting all cash outflows = $ 10465
The top managers of an organization typically use a variety of financial indicators to assess the performance of their organizations. Discuss the major types of financial measures and describe when each would be chosen by management.
Answer:
Four significant types of financial measures are :-
1. Profitability or re-turn on investment :- rate of profitability is utilized by the top administrator to know the increase or profit for the speculation comparative with the measure of cash contributed. This is likewise utilized by the supervisor to know the gross productivity, net benefit, return on resources, rate of profitability, gaining per share, speculation turnover and deals per representative.
2. Liquidity ratio :- liquidity proportion is utilized by the top chief to realize the organization's capacity to pay its present commitment. organization's liquidity proportion incorporates current proportion, speedy proportion, money to add up to resource, deal to receivable, Days' receivables proportion, Cost of deals to payable, and money turnover.
3. Leverage ratio:- Leverage ratio is utilized by the chief to know the solvency of the organization. Influence incorporates Debt to value proportion, Debt proportion, Fixed to worth proportion, and Interest inclusion.
4. Efficiency ratio - productivity proportion is utilized by the top supervisor to gauge the organization's capacity to utilize its assets and oversee liabilities successfully for the time being. It incorporates Annual stock turnover, Inventory holding period, Inventory to resources proportion Inventory/Total Assets, Accounts receivable turnover Net (credit) Sales/Average Accounts Receivable and Collection period 365/Accounts Receivable Turnover
If a firm’s inventories on hand are $200,000, its cost of goods sold is $600,000, and its sales are $800,000, what is the inventory turnover?
Answer:
inventory turnover= 3
Explanation:
Giving the following information:
A firm’s inventories on hand are $200,000
The cost of goods sold is $600,000.
To calculate the inventory turnover, we need to use the following formula:
inventory turnover= cost of goods sold/ average inventory
inventory turnover= 600,000/200,000= 3
The stock of Business Adventures sells for $40 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows: Dividend Stock Price Boom $2.80 $48 Normal economy 1.80 43 Recession 0.90 34 a. Calculate the expected holding-period return and standard deviation of the holding-period return. All three scenarios are equally likely. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Answer:
Expected Return =8.75% Standard deviation =6.375%
Explanation:
Overall expected return
We calculated the return for all the possibilities normal, boom, recession
boom+normal+recession
(final stock price-initial stock price+dividend)/initial stock price*prop
=[(48-40+2.80)/40*1/3]+[(43-40+1.8)/40*1/3]+[(34-4+0.90)/40*1/3]
=0.09+0.04-0.0425
=0.875/8.75%
expected holding period standard deviation
(overall expected return-return of scenario)^2*prop
(8,75-9)^2*1/3+(8,75-4)^2*1/3+(8,75+4.25)^2*1/3
=0.006387/0.6387%
Parsons Corporation plans to sell 18,000 units during August. If the company has 5,500 units on hand at the start of the month, and plans to have 6,000 units on hand at the end of the month, how many units must be produced during the month
Parsons Corporation must produce 18,500 units during the month.
Explanation:To find the number of units that must be produced during the month, we need to calculate the net production needed.
Net production = Units to be sold + Desired ending inventory - Beginning inventory
Net production = 18,000 + 6,000 - 5,500 = 18,500 units
Therefore, Parsons Corporation must produce 18,500 units during the month.
8 months from now, your organization is planning to purchase new video conferencing equipment for a cost of $12,000. The equipment will have a useful life of 10 years and no salvage value. To pay for it, the organization plans to deposit $4,000 today in an investment account with an annual interest rate of 6.5%. In order to be able to purchase the equipment, the amount of additional money the organization must put in that investment account at the end of each month for 8 months is (select one): A. $1,536.79 B. $149.18 C. $533.90 D. $959.53 E. $42.09 F. $505.08
Answer:
D. $959.53
Explanation:
1. Calculate how much money the $4,000 deposit today will be worth 8 months from now:
[tex]Future\text{ }value=Deposit\times (1+i)^{(n)}[/tex]
Where:
Deposit = $4,000i = monthly compound interest = 6.5% / 12 = 0.065/12n = number of months (periods)[tex]Future\text{ }value=\$4,000\times (1+0.065/12)^{8}=\$4,176.66[/tex]
2. Calculate how much additioanl money you will need:
Cost of the equipment - Future value of deposit$12,000 - $4,176.66 = $7,823.343. Calculate the amount of additional money the organization must put in that investment account, at the end of each month for 8 months, to produce $7,823.34 over the $4,176.66.
Use the formula for the future value, FV, of a constant periodic deposit, D, during n periods at the interest rate i:
[tex]FV=D\times \bigg[\dfrac{(1+i)^n-1}{i}\bigg][/tex]
FV = $7,823.34D = your unknowni = 6.5% / 12 = 0.065/12n = 8[tex]\$7,823.34=D\times \bigg[\dfrac{(1+(0.065/12))^8-1}{(0.065/12)}\bigg][/tex]
[tex]\$7823.34=D\times 8.153320895\\\\\\D=\$959.53[/tex]
The organization must put in the investment account at the end of each month for 8 months is $942.84. The correct answer is option D. $942.84
To determine the additional monthly deposit amount, we need to break down the calculations step-by-step.
1. Future Value of Lump Sum Deposit:
Given:
- Present Value [tex](\( PV \))[/tex] = $4,000
- Annual Interest Rate r = 6.5% or 0.065
- Compounding periods per year n = 12
- Time in years t = 8/12 years
[tex]\[FV_{lump} = PV \times (1 + \frac{r}{n})^{nt}\][/tex]
Substitute the values:
[tex]\[FV_{lump} = 4000 \times (1 + \frac{0.065}{12})^{12 \times \frac{8}{12}}\][/tex]
[tex]\[FV_{lump} = 4000 \times (1 + \frac{0.065}{12})^8\][/tex]
[tex]\[FV_{lump} = 4000 \times (1.0054167)^8\][/tex]
[tex]\[FV_{lump} = 4000 \times 1.044927\][/tex]
[tex]\[FV_{lump} \approx 4179.71\][/tex]
2. Future Value Needed from Monthly Deposits:
[tex]\[FV_{total} = 12000\][/tex]
[tex]\[FV_{monthly} = FV_{total} - FV_{lump}\][/tex]
[tex]\[FV_{monthly} = 12000 - 4179.71\][/tex]
[tex]\[FV_{monthly} \approx 7820.29\][/tex]
3. Monthly Deposit Calculation:
Using the future value of an ordinary annuity formula:
[tex]\[FV = P \times \frac{(1 + \frac{r}{n})^{nt} - 1}{\frac{r}{n}}\][/tex]
Given:
- [tex]\( FV_{monthly} \)[/tex] = 7820.29
- r = 0.065
- n = 12
- t = 8/12 years
[tex]\[7820.29 = P \times \frac{(1 + \frac{0.065}{12})^{8} - 1}{\frac{0.065}{12}}\][/tex]
[tex]\[7820.29 = P \times \frac{(1.0054167)^8 - 1}{0.0054167}\][/tex]
[tex]\[7820.29 = P \times \frac{1.044927 - 1}{0.0054167}\][/tex]
[tex]\[7820.29 = P \times \frac{0.044927}{0.0054167}\][/tex]
[tex]\[7820.29 = P \times 8.2936\][/tex]
[tex]\[P = \frac{7820.29}{8.2936}\][/tex]
[tex]\[P \approx 942.84\][/tex]
Complete question : 8 months from now, your organization is planning to purchase new video conferencing equipment for a cost of $12,000. The equipment will have a useful life of 10 years and no salvage value. To pay for it, the organization plans to deposit $4,000 today in an investment account with an annual interest rate of 6.5%. In order to be able to purchase the equipment, the amount of additional money the organization must put in that investment account at the end of each month for 8 months is (select one):
A. $1,536.79
B. $149.18
C. $533.90
D. $942.84
E. $42.09
F. $505.08
g What’s the interest rate of a 5-year, annual $4,900 annuity with present value of $20,000? (Use a time value of money calculator or a spreadsheet. Round your answer to 2 decimal places.)
Answer:
Interest rate of annuity is 7.17%
Explanation:
A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity.
Formula for Present value of annuity is as follow
PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]
$20,000 = $4,900 x [ ( 1- ( 1+ r )^-5 ) / r ]
r = 7.17%
Interest rate is 7.17%
Under absorption costing, fixed overhead is allocated to products sold, so when production is greater than units sold, net income will be ___________(greater, less) than income calculated under variable costing.
Answer:Greater
Explanation: Absorption costing is a cost accounting procedure which is used in the costing of both the direct and indirect expenses involved in the production of a specific product or service over a given period of time.
Fixed overhead costs are specifically concerned with goods sold while variable costs are specifically concerned with all the goods manufactured.
THE COST THAT WILL BE ASSOCIATED WITH FIXED OVERHEAD COST WILL BE LESS WHEN COMPARED TO THAT CALCULATED USING VARIABLE COSTING AND THIS WILL CAUSE THE NET INCOME CALCULATED USING THE FIXED OVERHEAD COST TO BE GREATER THAN THE VARIABLE COSTING APPROACH.
Under absorption costing, net income will be greater than under variable costing when production exceeds units sold because some fixed costs are allocated to inventory rather than being immediately expensed.
Explanation:Under absorption costing, fixed overhead is allocated to products sold. Consequently, when production exceeds units sold, the net income will be greater than income calculated under variable costing. This occurs because with absorption costing, some of the fixed costs are allocated to the inventory and are not immediately expensed in the period they are incurred but instead are recognized as the inventory is sold. This can defer some expenses and thus increase the reported net income in periods where production is greater than sales. With variable costing, however, all fixed overhead costs are expensed in the period they are incurred, which means that net income will closely align with the number of units sold and not necessarily the number of units produced.
Variable costing provides insights into the firm's ability to cut costs in the present and showcases how costs will change with production levels. Unlike fixed costs which are sunk and constant, variable costs increase proportionally with production output, influencing decisions about optimal production and cost management strategies in the immediate term.
Identify which informal research technique would be most appropriate for each situation You receive a voice mail from your supervisor asking you to compile a list of talking points for an upcoming interview on the Morning News Show. The best informal information gathering technique to find out the details of what your boss expects would be to:
a. Look in the files
b. Conduct an informal survey
c. Talk with your boss
Answer:
a) Look in the files
Explanation:
You have to look in the files, ascertain the current situation of the organization, gather information on the organization's previous and current performances and deduce how best to answer likely questions that would pop up in the upcoming interview on the morning News show. This informal research technique would enable your boss to be adequately prepared for the interview.
he strategic management process: 1. is especially difficult for the small business because of its limited resources. 2. divides mass markets into smaller, less homogeneous units. 3. provides the small business owner with the tools for managing the uncontrollable elements in the external business environment. 4. helps a small business develop the game plan that guides it in creating its mission, vision, goals, and objectives.
Answer:
4. helps a small business develop the game plan that guides it in creating its mission, vision, goals, and objectives.
Explanation:
Strategic management is the process by which a business continuously plans, monitors, analyses, and asseses organisational activities with the aim of meeting it's goals and objectives.
The business environment is constantly changing and this calls for continous changing of business strategy to ensure survival.
Strategic management process involves five stages:
- Clarify business vision
- Gather and analyse information
- Formulate a strategy
- Implement strategy
- Evaluate results and control outcomes
Which of the following is an example of human capital?
a.the comfortable chair in your room where you read economics texts
b.the amount you get paid each week to work at the library
c.the things you have learned this semeste
d.any capital goods that require a human to be present to operate
Answer:
B
Explanation:
b.the amount you get paid each week to work at the library
This is because human capital involves using humans to perform series and output and managing them only option b fall in that line
The statements and equations show various ways of defining average variable cost, marginal cost, and average total cost. TC is used to abbreviate total cost, VC is used to abbreviate variable cost, and Q is used to abbreviate quantity. Classify each statement or equation according to whether it describes average variable cost, marginal cost, or average (total) cost.
The student's question involves identifying and classifying average variable cost (AVC), marginal cost (MC), and average total cost (ATC) in business economics. AVC is variable costs divided by output quantity, MC is the derivative of total cost with respect to quantity, and ATC is total costs divided by output quantity.
The student's question pertains to the classification of different cost measures commonly used in economics and business studies: average variable cost (AVC), marginal cost (MC), and average total cost (ATC). Each of these measures provides insight into the cost structure of a firm on a per-unit basis. Here's a simplified breakdown:
Average Variable Cost (AVC) is defined as the variable cost (VC), which includes costs that do vary with the level of output, divided by the quantity (Q) of output. Mathematically, AVC = TVC/Q.
Marginal Cost (MC) is the additional cost of producing one more unit of output. It is calculated as the derivative of Total Cost (TC) with respect to quantity (Q), which can be expressed as MC = d(TC)/dQ.
Average Total Cost (ATC) is the sum of all the costs (both fixed and variable) incurred by a firm, divided by the total quantity of output produced. It is calculated as ATC = TC/Q.
An understanding of these concepts is crucial for making informed business decisions, such as determining the optimal level of production or pricing strategies.
ASSUME that in 25 years you will need $500,000 for your retirement (i.e. retirement is actually 25 years away, and you want to have saved $500,000). How much money would you have to put into a bank today to accumulate this if your money will earn 8% per year (assume annual compounding)?
a.73,009
b.166,365
c.211, 573
d.676,001
e.insufficient information to compute
Answer:
The correct answer is:
$73,009 (a.)
Explanation:
Future value is the accumulated compounded interest on a certain amount (present value) invested over a specified period of time.
To calculate the future value or present value, the nominal annual interest, the duration of investment and the present value or future value respectively must be known. The relationship is shown mathematically as:
[tex]FV=PV(1 + i)^{n}[/tex]
or [tex]PV = \frac{FV}{(1 + i)^n}[/tex]
where FV = Future value
PV = present value
i = nominal interest rate in percentage
n = number of compounding period
note: nominal interest rate is interest rate before inflation adjustments or interest rate before the effect of compounding
In this question, we are to determine the present value (PV), because the future value after 25 years is set as $500,000.
∴ [tex]PV = \frac{FV}{(1 + i)^n}[/tex]
[tex]\\ PV = \frac{500,000}{(1 + 0.08)^2^5} = \frac{500,000}{6.8485} = 73,008.7[/tex]
= $73,009 (to the nearest dollars)
In the context of skills of successful managers, making sacrifices to encourage and promote desired outcomes in an organization is primarily part of ________.
Answer: monitoring operation
Explanation:
Monitoring operations requires management oversight, employee feedback and customer reviews. It can help provide specific directions for employees, which can lead to improved time management and increased productivity.