Answer:
The reward to risk ratio for stock Y is 7.22%
The reward to risk ratio for stock Z is 5.50%
Explanation:
First and foremost, it is very important to note that the reward-to-risk ratio of a stock is the risk premium paid by the stock divided by its asset Beta.
The risk premium is calculated as stock expected return minus risk free rate
The risk premium is denoted by (rm – rrf) in Capital Asset Pricing Model of Modgiliani and Miller
For stock Y risk premium is 18.2%-5.2%=13%
For stock Z risk premium is 9.6%-5.2%=4.40%
For stock Y reward to risk ratio=13%/1.8=7.22%
For stock Z reward to risk ratio=4.40%/0.8=5.50%
Hence stock Y has a higher reward to risk ratio
Answer:
Y=1.05 Z=0.91
Explanation:
We calculate the risk for the stocks first
Ry=5.2+1.8(6.7)=17.26
Rz=5.2+0.8(6.7)=10.56
Then we calculate the reward for every risk the stock takes
so Y= 18.2/17.26
=1.05
Z=9.6/10.56
=0.91
Yulan, Inc has beginning Retained Earnings of $35,000, ending Retained Earnings of $39,500, and net income of $21,500. What was the amount of dividends declared during the year?
a. $17,000
b. $13,500
c. $4,500
d. $21,500
Answer:
$17,000
Explanation:
Retained earnings is the sum of all nondistributed profits earned by a company since it begun operations. Retained earnings either increase or decrease as a result of net income or loss and dividend paid to shareholders.
Dividends paid = beginning retained earnings + Net income - ending retained earnings
$35,000 + $21,500 - $39,500 = $17,000
I hope my answer helps you
A company produces at an output level where marginal revenue is equal to marginal cost and has the following revenue and cost levels: Marginal cost curve intersects the average variable cost curve at $150. Marginal cost curve intersects the average total cost curve at $200. Marginal cost curve intersects the marginal revenue curve at $170. What would you suggest this firm should do in the short run
Answer:
The firm should continue to produce at a loss.
Explanation:
As long as intersection of Marginal cost curve and marginal revenue curve is above the $150, it is advisable for firm to continue its operations since in case of shut down it would be bearing a loss of whole fixed cost
Consider an economy with 500 people in the labor force. At the beginning of every month, 5 people lose their jobs and remain unemployed for exactly one month; one month later, they find new jobs and become employed. In addition, on January 1 of each year, 20 people lose their jobs and remain unemployed for six months before finding new jobs. Finally, on July 1 of each year, 20 people lose their jobs and remain unemployed for six months before finding new jobs.
a. What is the unemployment rate in this economy in a typical month?
b. What fraction of unemployment spells lasts for one month? What fraction lasts for six months?
c. What is the average duration of a completed spell of unemployment?
d. On any particular date, what fraction of the unemployed are suffering a long spell (six months) of unemployment?
Answer:
a. What is the unemployment rate in this economy in a typical month?
5%b. What fraction of unemployment spells lasts for one month? What fraction lasts for six months?
1% lasts 1 month, 4% lasts 6 monthsc. What is the average duration of a completed spell of unemployment?
5 monthsd. On any particular date, what fraction of the unemployed are suffering a long spell (six months) of unemployment?
80%Explanation:
given:
total labor force = 500 people
every month 5 people are frictionally unemployed
at January 1, 20 people lose their jobs and find new jobs by the end of June
at July 1, 20 people lose their jobs and find new jobs by the end of December
total unemployed on a typical month = 5 + 20 = 25 ⇒ 5%
unemployed for 1 month = 5 ⇒ 1%
unemployed for 6 months = 20 ⇒ 4%
average duration of unemployment = [(20 x 6) + (5 x 1)] / 25 = 5 months
on any day, 20/25 = 80% of the unemployed are suffering a long spell unemployment
Answer:
a) 5%
b) 0.60 0.40
c) 3months
d) 80%
Explanation:
The solution is attached in the picture below
Oscar’s Red Carpet Store maintains a checking account with Academy Bank. Oscar’s sells carpet each day but makes bank deposits only once per week. The following provides information from the company’s cash ledger for the month ending February 28, 2018. Date Amount No. Date Amount Deposits: 2/4 $ 2,600 Checks: 321 2/2 $ 4,600 2/11 2,200 322 2/8 650 2/18 3,100 323 2/12 2,400 2/25 4,000 324 2/19 2,100 Cash receipts: 2/26-2/28 1,500 325 2/27 450 326 2/28 950 $ 13,400 327 2/28 1,800 Balance on February 1 $ 6,700 $12,950 Receipts 13,400 Disbursements (12,950) Balance on February 28 $ 7,150 Information from February's bank statement and company records reveals the following additional information:
a. The ending cash balance recorded in the bank statement is $11,770.
b. Cash receipts of $1,500 from 2/26-2/28 are outstanding.
c. Checks 325 and 327 are outstanding.
d. The deposit on 2/11 includes a customer's check for $450 that did not clear the bank (NSF check).
e. Check 323 was written for $2,800 for advertising in February. The bank properly recorded the check for this amount.
f. An automatic withdrawal for Oscar's February rent was made on February 4 for $1,300.
g. Oscar's checking account earns interest based on the average daily balance. The amount of interest earned for February is $190.
h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $5,800 from Oscar. On February 24, Titanic paid $5,950 ($5,800 borrowed amount plus $150 interest) directly to Academy Bank in payment for January's borrowing.
i. Academy Bank charged service fees of $120 to Oscar’s for the month. Prepare a bank reconciliation for Oscar's checking account on February 28, 2018.
To prepare a bank reconciliation for Oscar's checking account, compare the cash ledger with the bank statement and make adjustments for discrepancies in deposits, checks, outstanding items, and additional information from the bank. The final adjusted balance on the cash ledger is $7,150.
Explanation:In order to prepare a bank reconciliation for Oscar's checking account on February 28, 2018, we need to compare the company's cash ledger with the bank statement and make adjustments for any discrepancies. Here's the step-by-step process:
Start with the balance on Oscar's cash ledger on February 1, which is $6,700Include the cash receipts from February, which total $13,400Subtract the disbursements from February, which total $12,950Add any outstanding receipts that haven't cleared the bank yet. In this case, it's $1,500 from 2/26-2/28Subtract any outstanding checks that haven't been deducted from the account yet. In this case, it's checks 325 and 327Make adjustments for any additional information from the bank statement. For example, the NSF check of $450 on the 2/11 deposit and the correct recording of check 323 for $2,800Take into account any interest earned or service fees charged by the bank. In this case, Oscar's earned $190 in interest and was charged $120 in service feesFinally, compare the adjusted balance on Oscar's cash ledger with the ending cash balance recorded in the bank statement, which is $11,770The final adjusted balance on Oscar's cash ledger on February 28, 2018 is $7,150.
Gabriel Farms, one of The Fruit Guys’ vendors, believes in paying its employees a "living wage," which is higher than a typical minimum wage. Which of Abraham Maslow’s hierarchy of needs is satisfied by a living wage?a.Safety needsb.Physiological needsc.Self-actualization needs
d.Esteem needse.Social needs
Final answer:
Gabriel Farms satisfies the safety needs of Maslow's hierarchy by providing a living wage, ensuring employee financial security.
Explanation:
A living wage provided by Gabriel Farms satisfies the safety needs in Abraham Maslow's hierarchy of needs. These safety needs are the second tier in Maslow's pyramid, right after physiological needs, and include personal and family safety as well as financial security.
By paying a living wage, Gabriel Farms ensures their employees meet their basic financial security, which is essential before an individual can focus on higher levels of the pyramid, such as love and belonging, esteem, and self-actualization needs.
On January 1, Year 1, Missouri Co. purchased a truck that cost $35,000. The truck had an expected useful life of 10 years and a $3,000 salvage value. The amount of depreciation expense recognized in Year 2 assuming that Missouri uses the double declining-balance method is_____________.
a. $5,120.
b. $5,600.
c. $3,500.
d. $7,000.
Answer:
B. $5600
Explanation:
Purchase price = $35,000
Expected life cycle= 10 years
Salvage value= $3000
Depreciation expense at the year 2= ?
Solution:
Using a straight line method.
Depreciation= Purchase price/expected useful life( straight line method)
Depreciation= 35,0000/10
=$3500 which is equivalent to 10% of the original price.
Using double declining-balance method, the value will double to
Depreciation expense in Year 1 = (20% of $35000) $7000
Depreciation expense in Year 2=
(20% of $28,000) $5600
Using the double declining balance method, the Year 2 depreciation expense for the truck purchased by Missouri Co. is $5,600, calculated by applying a rate of 20% to the book value at the start of Year 2.
Explanation:In the double declining balance method of depreciation, the book value of the asset is multiplied by double the rate of straight-line depreciation, which in this case is 20% as the life of the truck is 10 years (1/10 = 10% x 2 = 20%). However, in Year 1, Missouri Co. would have already recognized an expense based on this method. Therefore, the book value at the beginning of Year 2 is the original cost of the truck ($35,000) minus the Year 1 depreciation. Let's assume that the Year 1 depreciation was $7,000 (20% of $35,000), so the starting book value in Year 2 will be $28,000 ($35,000-$7,000). Applying the 20% rate to this value, the depreciation expense recognized in Year 2 would be $5,600 ($28,000 * 20%). So, the correct answer is b. $5,600.
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Several lines of research have clarified the basic cognitive mechanisms involved in generalized anxiety disorder, as well as in panic disorder. Experts now believe that a factor that plays a crucial role in the onset of this process is
A. depression.
B. conditioned responses.
C. attention.
D. the hypothalamus.
Answer:D
Explanation:
Hypothalamus is a small region of the brain. It's located at the base of the brain near the Pituitary gland. Therefore panic disorder order and anxiety disorder is associated with hypothalamus.
Whipple Corp. just issued 280,000 bonds with a coupon rate of 6.02 percent paid semiannually that mature in 25 years. The bonds have a YTM of 6.46 percent and have a par value of $2,000. How much money was raised from the sale of the bonds?
Answer:
529.64 million or $529,639,600 was received from the sale of bonds.
Explanation:
Money Raised from the sale is based on the current value of the bond. Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula:
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
As per given data
Face Value = $2,000
Coupon payment = $2,000 x 6.02% = $120.4 /2 = $60.2 semiannually
Number of period = n = 25 years x 2 period per year = 50 period
Yield to maturity = 6.46% annually = 6.46% / 2 = 3.23% semiannually
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Price of the Bond = $60.2 x [ ( 1 - ( 1 + 3.23% )^-50 ) / 3.23% ] + [ 2,000 / ( 1 + 3.23% )^50 ]
Price of the Bond = $1,483.51 + $408.06 = $1,891.57
Cash received = Number of bonds x Price per bond = 280,000 x $1,891.57 = $529,639,600
The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31, are as follows: Date Transaction Number of Units Per Unit Total Jan. 1 Inventory 7,500 $75.00 $562,500 10 Purchase 22,500 85.00 1,912,500 28 Sale 11,250 150.00 1,687,500 30 Sale 3,750 150.00 562,500 Feb. 5 Sale 1,500 150.00 225,000 10 Purchase 54,000 87.50 4,725,000 16 Sale 27,000 160.00 4,320,000 28 Sale 25,500 160.00 4,080,000 Mar. 5 Purchase 45,000 89.50 4,027,500 14 Sale 30,000 160.00 4,800,000 25 Purchase 7,500 90.00 675,000 30 Sale 26,250 160.00 4,200,000 Instructions 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3 , using the first-in, first-out method. 2. Determine the total sales and the total cost of merchandise sold for the period. Journalize the entries in the sales and cost of merchandise sold accounts. Assume that all sales were on account and date your journal entry March 31. Refer to the Chart of Accounts for exact wording of account titles. 3. Determine the gross profit from sales for the period. 4. Determine the ending inventory cost as of March 31. 5. Based upon the preceding data, would you expect the inventory using the last-in, first-out method to be higher or lower
To record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record using the FIFO method, track units and cost of each transaction. Determine total sales and cost of merchandise sold. Calculate gross profit from sales. Determine ending inventory cost as of March 31. LIFO method would expect lower inventory.
Explanation:To record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record using the first-in, first-out (FIFO) method, we need to track the units and cost of each transaction. Here is an example of the perpetual inventory record:
DateTransactionNumber of UnitsPer UnitTotalJan. 1Inventory7,500$75.00$562,50010Purchase22,500$85.00$1,912,50028Sale11,250$150.00$1,687,50030Sale3,750$150.00$562,500Feb. 5Sale1,500$150.00$225,00010Purchase54,000$87.50$4,725,00016Sale27,000$160.00$4,320,00028Sale25,500$160.00$4,080,000Mar. 5Purchase45,000$89.50$4,027,50014Sale30,000$160.00$4,800,00025Purchase7,500$90.00$675,00030Sale26,250$160.00$4,200,000
To determine the total sales and the total cost of merchandise sold for the period, we can calculate the sum of the sales and multiply it by the corresponding costs:
Total Sales = $1,687,500 (Jan. 28 Sale) + $562,500 (Jan. 30 Sale) + $225,000 (Feb. 5 Sale) + $4,320,000 (Feb. 16 Sale) + $4,080,000 (Feb. 28 Sale) + $4,800,000 (Mar. 14 Sale) + $4,200,000 (Mar. 30 Sale) = $19,884,000
Total Cost of Merchandise Sold = 11,250 units (Jan. 28 Sale) x $75.00 per unit (Jan. 1 Inventory cost) + 3,750 units (Jan. 30 Sale) x $75.00 per unit (Jan. 1 Inventory cost) + 1,500 units (Feb. 5 Sale) x $75.00 per unit (Jan. 1 Inventory cost) + 27,000 units (Feb. 16 Sale) x $85.00 per unit (Jan. 10 Purchase cost) + 25,500 units (Feb. 28 Sale) x $85.00 per unit (Jan. 10 Purchase cost) + 30,000 units (Mar. 14 Sale) x $89.50 per unit (Mar. 5 Purchase cost) + 26,250 units (Mar. 30 Sale) x $89.50 per unit (Mar. 5 Purchase cost) = $14,797,500
The gross profit from sales for the period can be calculated by subtracting the total cost of merchandise sold from the total sales:
Gross Profit = Total Sales - Total Cost of Merchandise Sold = $19,884,000 - $14,797,500 = $5,086,500
To determine the ending inventory cost as of March 31, we can calculate the remaining units multiplied by the corresponding costs:
Ending Inventory Cost = 45,000 units (Mar. 5 Purchase) x $89.50 per unit (Mar. 5 Purchase cost) + 7,500 units (Mar. 25 Purchase) x $90.00 per unit (Mar. 25 Purchase cost) = $4,027,500 + $675,000 = $4,702,500
Based on the data provided, using the last-in, first-out (LIFO) method, we would expect the inventory to be lower compared to using the FIFO method. This is because LIFO assumes that the most recently purchased inventory is sold first, which would result in higher costs being allocated to the cost of merchandise sold, leaving lower-cost inventory on hand.
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To record the inventory, purchases, and cost of merchandise sold using the FIFO method, follow these steps: start with the beginning inventory, record purchases, and calculate the cost of goods sold for each sale. The total sales for the period would be $12,152,500, and the total cost of merchandise sold would be $11,625,000. The ending inventory cost as of March 31 would be $562,500. Using the LIFO method, the inventory value is expected to be lower.
Explanation:To record the inventory, purchases, and cost of merchandise sold using the first-in, first-out (FIFO) method, we need to follow these steps:
Start with the beginning inventory of 7,500 units at $75.00 per unit.Record the purchases and their corresponding costs.For each sale, calculate the cost of goods sold using the earliest available units and their costs.Based on the given information, the total sales for the period would be $12,152,500, and the total cost of merchandise sold would be $11,625,000. The gross profit from sales for the period would be $527,500.
The ending inventory cost as of March 31 can be calculated by subtracting the cost of merchandise sold from the total cost of inventory available. In this case, the ending inventory cost would be $562,500.
For the last-in, first-out (LIFO) method, the inventory value would be expected to be lower because it assumes that the most recent purchases are the first ones sold.
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1. Potash Corporation acquired the voting stock of Safestyle Company on January 1, 2019 for $50 million. Safestyle's book value at the time was $10 million, consisting of $2 million of capital stock and $8 million of retained earnings. The $40 million difference between fair and book value was attributed to goodwill. It is now December 31, 2020, the end of the accounting year and two years after the acquisition. Safestyle's January 1, 2020 retained earnings balance is $11 million, and it reports net income of $1.8 million for 2020. Safestyle declares no dividends and has no other comprehensive income. Goodwill from the acquisition was impaired by $1 million in 2019 and $500,000 in 2020. Potash uses the complete equity method to report its investment in Safestyle on its own books. On the December 31, 2020 consolidation working paper, eliminating entry (R) credits the Investment in Safestyle account by: A. $39,000,000 B. $38,500,000 C. $40,000,000 D. $39,500,000
The eliminating entry (R) would credit the Investment in Safestyle account by $38,500,000 on the December 31, 2020 consolidation working paper. This is the outcome of the initial investment of $50 million less the accumulated retained earnings and impairments.
Explanation:The Investment in Safestyle account on the December 31, 2020 consolidation working paper, eliminating entry (R) would be credited by $38,500,000. This is calculated by deducting the change in retained earnings and the impairment losses from the initial investment of $50 million. Here is how it works:
Initial investment in Safestyle: $50,000,000 Retained earnings on January 1, 2020: $11 million Net income for 2020: $1.8 million (which adds to retained earnings) Retained earnings on December 31, 2020 becomes $12.8 million Goodwill Impairment in 2019: $1 million Goodwill Impairment in 2020: $0.5 million Total Impairments: $1.5 million
The difference between the initial investment and the sum of end retained earnings and the total impairments gives us $50,000,000 - $12,800,000 - $1,500,000 = $38,500,000.
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Sekelow Enterprises is a debt collection agency. It uses postcards to contact consumer debtors it is attempting to collect from for its clients. The name "Sekelow Enterprises" and the company address appear on the postcards used along with: "VERY IMPORTANT: PLEASE CONTACT US ABOUT YOUR DILLARD’S DEBT."
Is it legal?
Answer:
The correct answer is: No, it is not legal.
Explanation:
The Fair Debt Collection Practices Act (FDCPA) is a federal law that prohibits debt collectors from using abusive, unreasonable, or misleading money-recovery methods. That is meant to protect debtors from harassment or intimidation.
Collectors cannot present themselves as law enforcement or government officials, they cannot call people at work or multiple times at home or during out hours, they cannot pass off papers as legal documents when they are not, they cannot arrest you, or lie in any way.
Thus, Sekelow has violated the FDCPA by sending debtors postcards requesting contact from their end.
Nelson Manufacturing has two processing departments, Department I and Department II. The raw materials processed at Department I are sent to Department II for further processing. During June, direct materials worth $40,000 purchased on account were assigned to Department I. The journal entry to record direct materials used in production is ________.
Answer:
The journal entry to record the direct material used in production is given below:
Dr Work-In Process Inventory $40000
Cr Raw Materials Inventory $40000
Explanation:
The work in process inventory is debited since it is the receiving account ,while raw material inventory is credited as it is the giving account.
The work in process depicts raw materials currently being worked upon at the production, from which completed goods are then transferred to finished goods inventory.
The raw materials inventory account is the account where raw materials received from vendors are first of all recorded before the need to issue to production process.
When such materials are received in the warehouse , the raw materials inventory account is debited while the supplier account is appropriately credited to show the amount of indebtedness.
Do you think the court made a fair determination in this case of LUCY VS ZEHMER? Would you suggest that the precedent be revisited by the court and changed given the age of the case? Explain. Support your answer with the material for this week. Also if you think it should be changed what would you suggest the change should be?
In the case Lucy v. Zehmer (1954), we learn that the mental assent of the parties is not requisite for the formation of a contract. In this case, Zehmer signed a note promising to sell his farm to Lucy while he was drunk. Afterwards, he refused to proceed.
The court stated that Lucy acted reasonably when he expected to receive the farm as had been stipulated in the contract. Moreover, the court found evidence of the fact that Zehmer was not drunk enough to not know what he was doing.
I believe that the facts of this case do not need to be changed. It is important that undisclosed intention remains immaterial except when an unreasonable meaning is known to the other party. This is because people need to be able to trust a person's word and intention when a contract is created. Under the objective theory of contracts, this sale contract should be considered a serious business transaction.
g: have an annual coupon rate of 8 percent and a par value of $1,000 and will mature in 20 years. If you require a 7 percent return, what price would you be willing to pay for a Vanguard bond
Answer:
The price for a vanguard bond will be $1204.48
Explanation:
We are given the face value of the bond so now we will look for the present value at which the vangaurd bond can be sold for so firstly we are given the bonds face value which is $1000 and an annual coupon rate of 8% plus the mature period of 20 years so we will use this information to find the bonds future value at a coupon rate which is the face value in 20 years time using the formula Fv = Pv (1+i)^n
where Fv is the future face value of the bond
Pv is the present value of the bond which is $1000
i is the coupon rate of 8%
n is the period the bond will mature in
therefore now we substitute the above mentioned values:
Fv = 1000(1+8%)^20
Fv = $4660.957144 this is the future face value of the bond now we will find the present value of the bond using the interest rate of 7% considering the return i want to find the value of the vanguard bond now using the same above formula but finding the present value at 7% per annum:
Pv= Fv/ (1+i)^n
where Fv is the future value above for the bond
Pv is the present value price of the bond which we are looking for
i is the interest rate i require which is 7%
n is the period of 20 years the bond took to mature.
therefore we substitute to the above mentioned formula:
Pv = $4660.957144/(1+7%)^20 then compute on a calculator
Pv = $1204.48 which will be the the price i'm willing to pay for the vanguard bond.
A corporate dissolution: a. cannot result from an agreement. b. results when a corporation does not hold an annual meeting. c. can begin with a board resolution. d. none of the above
Answer:
The correct answer is (C)
Explanation:
Corporate dissolution is a termination of cooperation that results after a complete consent of the board of directors. Likewise, a corporate dissolution is a serious step that can begin with a board resolution. If the board of directors are on one page then it becomes easier to dissolve cooperation. It can only be done by a vote to approve the resolution by the board of directors and shareholders.
Dear Mr. Dunlap: Subject: Your Request for Invoicing Process Information
I am happy to let you know that I can answer your question regarding the company invoice processing. As you may know, once a contract has been signed, service providers may invoice the company at any time during the project as work is completed.
This is an effective beginning for a direct reply letter.
(A) True
(B) False
Answer:
A. True
The response denotes strong interest in helping the individual with the invoice process
Answer:
False
Explanation:Direct reply letters are letters issued by Organisations to either their suppliers or other participants in their business,it is usually written to give a reply to an enquiry or in response to a correspondence.
A direct reply letter should meet certainly criteria which includes the following;
(1) It must have a subject
(2) It should contain previous correspondence
(3) It should be clear and unambiguous
(4) It should be legible etc
AN EFFECTIVE DIRECT REPLY LETTER MAKES COMMUNICATION DECENT AND EFFECTIVE AND ASSISTS IN FACILITATING A POSITIVE PROJECT OR BUSINESS OUTCOME.
U.S. Products operates two divisions with the following sales and expense information for the month of July: East Division: Sales $240,000; Contribution margin ratio 35%, Direct fixed expenses $48,000. West Division: Sales $160,000; Contribution margin ratio 50%, Direct fixed expenses $32,000. U.S. Products' total fixed expenses during July was $200,000. The East Division’s segment margin for July is:a. $36.000b.$40.000c.$80.000d.$84.000
Answer:
Explanation:
East division segment margin = Contribution margin - Direct fixed expense
Contribution margin = $240,000*35% = $84,000
Direct fixed expenses = $48,000
So segment margin is 84,000 - 48000 = $36000
Answer is option A
To calculate the East Division’s segment margin for July, the total contribution margin for the East Division needs to be calculated. The segment margin is then calculated by subtracting the total fixed expenses from the total contribution margin. The East Division’s segment margin for July is $84,000.
Explanation:To calculate the East Division’s segment margin for July, we first need to calculate the total contribution margin for the East Division. The contribution margin is calculated by subtracting the direct fixed expenses from the sales revenue, and then multiplying it by the contribution margin ratio. For the East Division, the total contribution margin would be ($240,000 - $48,000) * 35% = $84,000.
The segment margin is then calculated by subtracting the total fixed expenses from the total contribution margin. For U.S. Products, the total fixed expenses during July was $200,000. Therefore, the East Division’s segment margin for July would be $84,000 - $200,000 = $-116,000.
Since the segment margin is negative, it indicates that the East Division has a loss for the month of July. Therefore, the correct answer is: d. $84,000.
Emily, the product development manager of JuzTel, seeks suggestions from her team members for improvising on the company's existing range of cell phones. The team members pour in their suggestions and Emily takes the final call on the inputs received by them. In this scenario, Emily is portrayed as a(n) _____
a. democratic leader
b. autocratic leader
c. consultative leader
d. consensus leader
The team members pour in their suggestions and Emily takes the final call on the inputs received by them. In this scenario, Emily is portrayed as a consensus leader
Explanation:
Emily, the product development manager of JuzTel, seeks suggestions from her team members for improvising on the company's existing range of cell phones. The team members pour in their suggestions and Emily takes the final call on the inputs received by them. In this scenario, Emily is portrayed as a consensus leader.In consensus leadership, the decision is based on group.consensus is a generally accepted bill by the Democrats and Republicans.It finds proposal which all the team can accept it and support it, with no member opposing it.Define your goals to the employees efficiently.If the cafeteria installs an automatic vendor that dispenses a cup of coffee at a constant time of 15 seconds, how many customers would you expect to see at the coffee urn (waiting and/or pouring coffee)
On average, we can expect 4 customers to arrive at the coffee urn per minute when the cafeteria installs the automatic vendor.
Explanation:To find out how many customers we would expect to see at the coffee urn, we need to determine the average time it takes for a new customer to arrive.
Given that a cup of coffee is dispensed every 15 seconds, we can calculate the average number of customers arriving per minute.
There are 60 seconds in a minute, so there will be 60 / 15 = 4 cups of coffee dispensed per minute.
Therefore, we can expect an average of 4 customers to arrive at the coffee urn per minute.
If you have an adjustable rate mortgage with an initial rate of 4 percent, an annual interest rate cap of 1 percentage point, and a lifetime cap of 5 percentage points, what is the maximum annual interest rate you could end up paying on the ARM?
Given Information:
Lifetime cap = 5 %
Initial interest rate = 4 %
Periodic adjustment rate = 1%
Required Information:
Maximum annual interest rate = ?
Answer:
Maximum annual interest rate = 9%
Explanation:
In adjustable rate mortgage scheme, lifetime cap is the maximum limit that is allowed after the initial the interest rate. The periodic adjustment rate is 1% and it is the maximum adjustment allowed in one year.
Maximum annual interest rate = Initial interest rate + Lifetime Cap
Maximum annual interest rate = 4% + 5%
Maximum annual interest rate = 9%
Therefore, maximum annual interest rate you could end up paying on the ARM is 9%
Jason Allen just received a cash gift from his grandfather. He plans to invest in a five-year bond issued by Blossom Corp. that pays an annual coupon rate of 5.0 percent. If the current market rate is 8.50 percent, what is the maximum amount Jason should be willing to pay for this bond?
Answer:
$862
Explanation:
We assume the face value of the bond to be $1000
Coupon rate is 5% paid annually
Coupon payment = 5% x $1,000 = $50
Current market rate or Yield to Maturity (YTM) = 8.50%
We need to calculate the current market price of this bond.
Current price = [tex]\frac{FaceValue}{(1 + ytm)^{N} }[/tex] + [ Coupon payment x [tex]\frac{1 - \frac{1}{(1 + r)^{N} } }{r}[/tex] ]
Where,
Face Value = $1000
Coupon Payment = $50
N = 5
r = 0.085 or 8.50 %
After plugging in the values in the above equation We get the current price as $862
$862 is the maximum amount Jason should be willing to pay for this bond
A manufacturer can produce at most 140 units of a certain product each year. The demand equation for the product is pequalsq squared minus 100 q plus 4800 and the manufacturer's average-cost function is c overbarequalstwo thirds q squared minus 30 q plus StartFraction 15 comma 000 Over q EndFraction . Determine the profit-maximizing output q and the corresponding maximum profit.
Answer:
As it can sale up to 140 it should sale 140 units
Explanation:
P = Q^2 - 100Q + 4800
C = 2/3Q^2 -30Q + 15,000Q^-1
Profit per unit P - C = (1/3Q^2 -70Q + 4800 - 15000Q^-1)
Total Profit Profit per unit x Q
1/3Q^3 - 70Q^2 + 4800Q - 15000
As this is a third degree equation the profit scalates therefore the company should sale as much as possibley can to make profit
As it can sale up to 140 it should sale 140 units
Also if we try to detemrinate the point at which Marginal revenue matches Marginal cost:
Revenue
P x Q = (Q^2 - 100Q + 4800) x Q = Q^3 - 100Q^2 + 4800Q
marginal Revenue (slope of the revenue funciton)
3Q^2-200Q+4,800
Cost
C x Q = (2/3Q^2 -30Q + 15,000Q^-1)* Q = 2/3Q^3 -30Q^2 + 15,000
Marginal Cost (slope of the cost function)
2Q^2 - 60Q
Marginal Revenue = Marginal Cost
3Q^2-200Q+4,800 = 2Q^2 - 60Q
Q^2 -140Q + 4800 = 0
When solving with the quadratic formula for the root (profit maximization point we notice the isn't a solution thus It cannot be solved which enhance the previous point that there isn't a profit maximization point in this assignment.
To find the profit-maximizing output, we need to compute the total revenue from the demand function and total cost from the average-cost function, and subtract the total cost from the total revenue to get the profit function. By computing the derivative of the profit function, setting it to zero, and solving for q, we can find the output (q) for maximum profit. Substituting this q into the profit function gives the maximum profit.
Explanation:To answer this question, we need to understand the concepts related to profit maximization in economics. In this scenario, the profit is obtained by subtracting the total cost from the total revenue.
The total revenue (TR) can be computed from the demand function p*q; substituting p from the given demand equation, we have TR = q*(q^2 - 100q + 4800)
The total cost (TC) is obtained by multiplying the average cost (c) by q; using the given average-cost function, we have TC = q*(2/3*q^2 - 30q + 15000/q). By substituting q with 140 (maximum production), we can find TC.
The profit function Π is computed as the difference between total revenue and total cost (Π = TR - TC). For the maximum profit, we need to find the derivative of the profit function and set it to zero, solving for q. The corresponding maximum profit can be found by substitutionΠ this q value into the profit function.
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After initially self-publishing his debut novel, The Martian, author Andy Weir continued to revise and improve later versions of the book based on readers' input, comments, and suggestions found on social media. This represents an example of an organization using social media to achieve which goal
Answer:
The correct answer is letter "A": Guide product development with customer feedback.
Explanation:
Companies make market researches before starting the manufacturing of a product. However, even if a study has been conducted to have a clear idea of what consumers want, the initial product offered may not meet customers' needs for different reasons.
In such a case, companies should take advantage of the feedback clients can provide about the product so those suggestions can be considered into the production process which will result in an output that matches better consumers' expectations.
(Related to Checkpoint 20.1) (Hedging with forward contracts) The Specialty Chemical Company operates a crude oil refinery located in New Iberia, Louisiana. The company refines crude oil and sells the by-products to companies that make plastic bottles and jugs. The firm is currently planning for its refining needs for one year hence. Specifically, the firm's analysts estimate that Specialty will need to purchase 1 million barrels of crude oil at the end of the current year to provide the feed stock for its refining needs for the coming year. The 1 million barrels of crude will be converted into by-products at an average cost of $40 per barrel that Specialty expects to sell for $170 million, or $170 per barrel of crude used. The current spot price of oil is $125 per barrel and Specialty has been offered a forward contract by its investment banker to purchase the needed oil for a delivery price in one year of $130 per barrel. a. Ignoring taxes, what will Specialty's profits be if oil prices in one year are as low as $110 or as high as $150, assuming that the firm does not enter into the forward contract? b. If the firm were to enter into the forward contract, demonstrate how this would effectively lock in the firm's cost of fuel today, thus hedging the risk of fluctuating crude oil prices on the firm's profits for the next year.
Answer:
a) $110 per barrel equals 20,000,000 gains
while %150 per barril equals 20,000,000 loss
b) by entering the fordward contract the firm will purchase the barrel at the market value of the moment but, the contract will give the difference to the firm when it is above that level thus, there is no risk of a higher cost)
If the price is below 130 dollars then, the firm will pay the difference to the other party. In both cases, the total cost for the millon barrels is $130,000,000 therefore, there is no risk on the fluctuation of the barrel of crude oil.
Explanation:
a) revenues - total cost = income
where cost can be explained as conversion csot and material cost.
170 million revenues - 40 conversion cost - 110 materials = 20 million gain
170 million revenues - 40 conversion cost - 150 materials = -20 million loss
Answer:
Specialty Chemical company
low spot rates($110) high Spot rates (150)
selling price $170 million $170 million
cost of sales( 1 million) $110 million $150 million
profits $60 million $20 million
b. The forward exchange contract versus the current spot rate is not a wise decision and has a loss of $ 5 million [($125 - $13) * 1 million] if the oil was to be bought using the current spot rate, but the Hedge is for next year and if spot rates increases then the Hedge will be an asset. if the spot rate is lower than the hedge then it is an liability. Demonstration needs actual spot rate for the date of oil purchase.
Explanation:
Rowland & Sons Air Transport Service, Inc., has been in operation for three years. The following transactions occurred in February:
Feb. 1 Paid $200 for rent of hangar space in February.
Feb. 4 Received customer payment of $800 to ship several items to Philadelphia next month.
Feb. 7 Flew cargo from Denver to Dallas; the customer paid in full ($900 cash).
Feb. 10 Incurred and paid $1,200 in pilot wages for flying in February.
Feb. 14 Paid $100 for an advertisement run in the local paper on February 14.
Feb. 18 Flew cargo for two customers from Dallas to Albuquerque for $2,505; one customer paid $795 cash and the other asked to be billed $1,710.
Feb. 25 Purchased on account $1,730 in supplies for future use on the planes.
Required:
Prepare accrual basis journal entries for each transaction.
Answer:
Explanation:
Feb. 1
prepaid rent 200
Cash 200
To record the advance rent payment
Feb. 4
Cash 800
Advance liability 800
To record received for future supplies
Feb. 7
Cash 900
Contract liability 900
Payment for the service to be provided
Feb. 10
Advance wages 1200
Cash 1200
Advance wages payment to pilot
Feb. 14
Adv to Advertise 100
Cash 100
Advance payment for advertisement expense.
Feb. 18
Cash 795
Account receiveable 1710
Revenue 2510
To record the accrued revenue
Feb. 25
inventory 1730
Account payable 1730
purchases on credit
Accrual basis journal entries for transactions in Rowland & Sons Air Transport Service, Inc. in February.
Explanation:Feb. 1: Rent expense 200 cash 200
Feb. 4: Cash 800 unearned revenue 800
Feb. 7: Cash 900 service revenue 900
Feb. 10: Pilot wages expense 1,200 cash 1,200
Feb. 14: Advertising expense 100 cash 100
Feb. 18: Cash 795 unearned revenue 795
Accounts receivable 1,710 service revenue 2,505
Feb. 25: Supplies 1,730 accounts payable 1,730
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Chester currently has $14,000,000 in cash and management has decided to issue stocks and bonds worth an additional $8,000,000. There are 2,566,559 shares outstanding. Assuming that cash from operations will be the same for each of the following activities, which activity exposes this company to the most risk of being issued an emergency loan?
Answer:
Retiring the oldest bond
Explanation:
Firms issue bonds to raise the funds. Firm has to pay dividend on those bonds and the ability of firm to pay dividend reflect the financial position of the firm. Thus, retiring the oldest bond in exposes company to the most risk of being issued an emergency loan
Pooler Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.74 direct labor-hours. The direct labor rate is $10.40 per direct labor-hour. The production budget calls for producing 7,200 units in April and 6,800 units in May. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 5,480 hours in total each month even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months
The total combined direct labor cost for Pooler Corporation for the months of April and May is $115,584.
To calculate the total combined direct labor cost for April and May, we must consider the direct labor hours needed for production and the guaranteed minimum hours that the workers will be paid for.
Calculations for April
Direct labor hours required for production:
= 7,200 units * 0.74 hours/unit
= 5,328 hours
The guaranteed minimum hours paid:
= 5,480 hours (since this is higher than the hours required for production, this is the number of hours that will be paid for)
Direct labor cost for April:
= 5,480 hours * $10.40/hour
= $57,792
Calculations for May
Direct labor hours required for production:
= 6,800 units * 0.74 hours/unit
= 5,032 hours
The guaranteed minimum hours paid:
= 5,480 hours (since this is higher than the hours required for production, this is the number of hours that will be paid for)
Direct labor cost for May:
= 5,480 hours * $10.40/hour
= $57,792
Total Direct Labor Cost
Total combined direct labor cost for April and May:
= $57,792 (April) + $57,792 (May)
= $115,584
17-06Coronado Corporation purchased 380 shares of Sherman Inc. common stock for $12,900 (Coronado does not have significant influence). During the year, Sherman paid a cash dividend of $3.25 per share. Assume the stock is nonmarketable.Prepare Coronado’s journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.)
Answer:
See explanation section.
Explanation:
Description/Account
(a) Investments in Sherman Inc. debit $12,900
Cash credit $12,900
As Coronado Corporation purchased shares of Sherman Inc. common stock, it is an investment.
(b) Cash debit $1,235
Dividend Revenue credit $1,235
Calculation: Shares × cash dividend of per share.
380 × $3.25 = $1,235
As Sherman paid a cash dividend of $3.25 per share to its share holder, Coronado Corporation will receive the portion of the dividend.
(c) Fair Value Adjustment debit $0
Unrealized Holding Gain or Loss Income credit $0
Seance the stock is non-marketable, the Fair Value Adjustment is not required. However, for the purpose of future transaction, I have added the journal entry.
According to the question, I Assume a zero balance in the Fair Value Adjustment account.
Elsa joined her new law firm expecting to participate in exciting environmental law cases, and cutting edge research. After one month at the firm she still hasn't been assigned a case and spends most of her time filing standardized appeals for title disputes with insurance companies. In which stage of the socialization process is Elsa?
Full question:
Elsa joined her new law firm expecting to have a part in exciting environmental law cases, and cutting edge research. After one month at the firm she still hasn't been assigned a case and spends most of her time filing standardized appeals for title disputes with insurance companies. In which stage of the socialization process is Elsa?
A) prearrival
B) encounter
C) metamorphosis
D) ritual
E) systemic
Answer:
encounter stage of the socialization process is Elsa
Explanation:
Encounter Stage is the portion of the grades of socialization where a character enters or enrolls in an organization. Encounter is the secondary stage of socialization. People determine how to fit their expectations of equal entities inside the organization.
Because of the encounter stage, and how well a fresh employee fits, it circumscribes the potency, responsibility, and turnover of an employee. This is the type of transition, diversity, and wonder of the newcomer. This can generate a lot of stress for a fresh employee.
Record transactions and prepare a partial income statement using a perpetual inventory system (LO6-2, 6-5) The following information applies to the questions displayed below At the beginning of July, CD City has a balance in inventory of $3,400. The following transactions occur during the month of July. July 3 Purchase CDs on account from Wholesale Music for $2,300, terms 1/10, n/30 July 4 Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $110. July 9 Return incorrectly ordered CDs to Wholesale Music and receive credit, $200. July 11 Pay Wholesale Music in full. July 12 Sell CDs to customers on account, $5,800, that had a cost of $3,000. July 15 Receive full payment from customers related to the sale on July 12 July 18 Purchase CDs on account from Music Supply for $3,100, terms 1/10, n/30 July 22 Sell CDs to customers for cash, $4,200, that had a cost of $2,500. July 28 Return CDs to Music Supply and receive credit of $300. July 30 Pay Music Supply in ful.
To record transactions and prepare a partial income statement using a perpetual inventory system, follow the given steps and calculate the necessary values.
To record transactions and prepare a partial income statement using a perpetual inventory system, we need to follow these steps:
Record the purchases of CDs on account from Wholesale Music on July 3 for $2,300, and pay cash for freight charges related to the purchase on July 4 for $110.Return incorrectly ordered CDs to Wholesale Music on July 9 and receive a credit of $200.Pay Wholesale Music in full on July 11.Sell CDs to customers on account on July 12 for $5,800 with a cost of $3,000, and receive full payment from customers on July 15.Record the purchase of CDs on account from Music Supply on July 18 for $3,100.Sell CDs to customers for cash on July 22 for $4,200 with a cost of $2,500.Return CDs to Music Supply on July 28 and receive a credit of $300.Pay Music Supply in full on July 30.Using these transactions, we can then prepare a partial income statement by calculating the sales revenue, cost of goods sold, and gross profit based on the given information.
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