The Fruit4U company produces gourmet, organically produced fruit popsicles and uses an aggressive pricing strategy by slashing prices to penetrate the market. What negative effects could this pricing strategy have?

a. may bring higher profits for the company
b. may increase the time the product remains on the shelves
c. may affect the product and company image, alienating its current market

Answers

Answer 1

Answer: C. may affect the product and company image, alienating its current market

Explanation: Prices of goods and services can be used as a competitive weapon or strategy to gain or maintain market share. Penetration pricing sets price levels low enough to quickly build market share and this may affect the product (as customers expect low prices permanently for the product) , company image (as the brand might be perceived as cheap) and might alienate the company's market (when customers seek perceived higher quality products).

Fruit4U lowering its price for its

gourmet probably in an effort to increase the customer base, may also lead to the product being sold at a loss, a loss it probably could not absorb. Penetrative pricing though, achieves market saturation before competitors copy the product, as such can be seen as an advantage.

Answer 2

Final answer:

Aggressive penetration pricing by Fruit4U for its gourmet popsicles may damage the product and company's image and lead to issues with brand perception. While it might increase sales volume, it could reduce profit margins and create challenges in raising prices in the future without losing price-sensitive customers. c is correct

Explanation:

The Fruit4U company's use of an aggressive pricing strategy, such as penetration pricing, can have several negative effects, despite the initial market penetration. One negative effect is that it may affect the product and company image, potentially alienating its current market. A low price, especially for premium or gourmet products, may lead customers to associate the price with lower quality, which could damage the brand's reputation.

Moreover, while slashing prices can increase sales volume in the short term, it can also lead to a decrease in profits. This is because the costs of producing the popsicles may not decrease as much as the selling price, leading to smaller margins. Another potential issue is that once the prices are set low, it can be difficult to raise them without losing customers who have come to expect the lower pricing, which can create a long-term impact on profitability.


Related Questions

Regarding the AQCD​ criteria, strive to include all high quality factors in an external assessment for a firm. A high quality factor will meet​ ______ of the AQCD​ criteria; a low quality factor will meet​ ______ of the AQCD criteria. A. ​3; 1 B. 3 or​ 4; 2 or fewer C. 3 or​ 4; 0 D. ​4; 0 E. ​All; none

Answers

Answer:

Option B) 3 or​ 4; 2 or fewer

Explanation:

A high quality factor will not meet 3 or 4 and low quality factor will not meet 1 or 0 so option A, C and D are incorrect.

The correct option is B. 3 or 4; 2 or fewer as a high quality factor will meet three or four of the AQCD criteria; a low quality factor will meet two or fewer of the AQCD critieria.

Calculate the future value in six years of $5,000 received today if your investments pay (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

Future Value
a. 5 percent compounded annually $
b. 7 percent compounded annually
c. 9 percent compounded annually
d. 9 percent compounded semiannually
e. 9 percent compounded quarterly

Answers

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

The future value in six years of $5,000 received today:

A) i=0.05 annually

FV= PV*(1+i)^n

FV= 5,000*(1.05)^6= $6,700.48

B) i=0.07 annually

FV= 5,000*(1.07)^6= $7,503.65

C) i=0.09 annually

FV= 5,000*(1.09)^6= $8,385.50

D) i= 0.09 semiannually= 0.045

FV= 5,000*(1.045)^12= $8,479.41

E) i=0.09 quaterly= 0.0225

n= 6*4= 24

FV= 5,000*(1.0225)^24= $8,528.83

If countries are first ranked by level or real GDP per capita, and then by the value of the Human Development Index, would you expect the ranking of countries to be similar or different? Explain Shocks to an economy, such as wars, famines, or the unification of two economies. often generate large one-time flows of workers across borders. What are the short-run and long-run effects on an economy of a one-time permanent increase in the stock of labor? Use a diagram to guide your arguments.

Answers

Answer:

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p'm

Explanation:

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The ranking of countries by real GDP per capita may differ from their ranking by Human Development Index as HDI considers broader development indicators. Short-run effects of an increased labor stock may include lower wages and higher unemployment, while long-run effects could lead to economic growth if paired with sufficient capital and technology.

When countries are ranked by real GDP per capita and then by the value of the Human Development Index (HDI), the rankings might differ because real GDP per capita is a measure of economic output adjusted for population, while HDI considers more nuanced aspects of development such as education, life expectancy, and income levels. An economy's performance in terms of GDP per capita may not fully capture the well-being of its people, which is why HDI rankings can diverge from GDP per capita rankings.

Shocks to an economy such as wars, famines, or unifications can lead to significant migration, impacting the labor market. A one-time permanent increase in the stock of labor in the short-run may cause wages to fall due to increased supply, potentially leading to higher unemployment if labor demand is static. In the long-run, however, the economy may adjust, and the additional labor can contribute to economic growth if accompanied by adequate capital and technological advancement.

J. Morgan and M. Halsted are partners who share income and loss in a 3:1 ratio. After several unprofitable periods, the two partners decided to liquidate their partnership. The current period's income or loss is closed to the partners' capital accounts according to the sharing agreement. Immediately before liquidation, the partnership balance sheet shows: land, $100,000; accounts payable, $80,000; J. Morgan, Capital, $15,000; and M. Halsted, Capital, $5,000. On January 15, the land was sold for $110,000 cash. On January 16, the partnership settled its liabilities. On January 31, the remaining cash was distributed to the partners. Prepare the January 15 journal entry for the partnership to record the sale of the land. Note: Enter debits before credits. Date General Journal Debit C

Answers

Answer:

cash   110,000 debit

  land                   100,000 credit

  gain at disposal  10,000 credit

--to reocrd teh sale of land--

accounts payable 80,000 debit

               cash               80,000 credit

--to record the payment of liabilities--

gain at disposal 10,000 debit

                Morgan           7,500 credit

                Halsted          2,500 credit

--to distribute the gain from sale--

Morgan 22,500

Haslted    7,500

   Cash                30,000

--to liquidate the partnership--

Explanation:

ratio 3:1 (3+1=4)

Morgan  15000 share of 3/4 = 75%

Halsted   5000 share of 1/4 = 25%

there is gain of 10,000 in the sale distribute as follow

Morgan 10,000 x 75% =  7,500

Halsted 10,000 x 75% =   2,500

Now we close the account against cash

Marigold Corp. includes one coupon in each bag of dog food it sells. In return for eight coupons, customers receive a leash. The leashes cost Marigold $5 each. Marigold estimates that 40 percent of the coupons will be redeemed. Data for 2020 and 2021 are as follows: 2020 2021 Bags of dog food sold 480000 590000 Leashes purchased 19000 22000 Coupons redeemed 100000 150000 The premium liability at December 31, 2021 is

Answers

Answer:

Explanation:

Premium liability of 2020

(480000 x .4 - 100000)x 1/8 x 5

= 57500

Premium liability of 2021

(590000 x .4 - 150000) x 1/8 x 5

= 53750

Total liability at 2021

= 57500 + 53750

= 111250

Country Furniture Company manufactures furniture at its? Akron, Ohio, factory. Some of its costs from the past year? include:

Depreciation on sales office

?$ ? 9,000

Depreciation on factory equipment

? 16,000

Factory supervisor salary

? 50,500

Sales commissions

? 23,000

Lubricants used in factory equipment

? 3,000

Insurance costs for factory

? 21,000

Wages paid to maintenance workers

? 115,000

Fabric used to upholster furniture

? 10,000

Freightminus?in

?(on raw? materials)
? 3,000

Costs of delivery to customers

? 9,000

Wages paid to
assemblyminus?line

workers
? 155,500

Lumber used to build product

? 82,000

Utilities in factory

? 54,500

Utilities in sales office

? 26,500

Product costs for Country Furniture Company totaled

A.

?$370,000.

Your answer is not correct.

B.

?$486,500.

C.

?$526,500.

D.

?$510,500.

Answers

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Compare and contrast anticipatory and response-based business models. Why has responsiveness become popular in supply chain collaborations?

Answers

Answer:

Forecast and planning

Explanation:

An anticipatory model is a model under which market forecast determines the production of products by the manufacturer, and purchases by retailers also determined by forecasts and promotional plans. Since the forecasts are wrong most of the times, anticipatory model usually leads to differences in the actual production of the firms and what they initially planned to produce.  

Anticipatory Model is a risky model because anticipation of future events always determines the work to do by the firm.

On the contrary, the Responsive Business Model does not depend on forecasts, but ensure that what to be done are adequately planned and information among firms in the supply chain are properly exchanged. This makes the model not to be risky and ensure doing more than what has already been planned is avoided. Therefore, the aim of the responsive model which also known as Pull Model is to eliminate reliance on forecast.  

The major reason the Responsive Model has become popular in supply chain collaborations is that it allows for the customization of products on smaller orders by customers.  However, the Anticipatory Model does not give customers any choice or power but to buy or not buy.

Response-based strategy is the process of achieving positive change by changing the current state of affairs, perception of viewers in a good business understanding, enabling the company to execute its policy smoothly.

Why is a responsive supply chain important?

Because it enables manufacturers to reduce risk (the best performance of a provider saves costs and schedules online inefficient suppliers can be seen and managed).

The main difference between the anticipatory and response-based business models is:

In response-based business models predicting or anticipating consumer buying trends are eliminated by exchanging information between the parties involved in the supply chain.

In the anticipatory business model, business operators share information to improve the efficiency and accuracy of supply chain operations.

To clarify, managers can exchange information to predict future buying trends accurately or complete forecasts, thus coming up with the required amount of inventory to supply the market.

The development of information technology has been the result of an increase in the transition from an anticipatory business model to responsive.

This is because all parts of the supply chain can access and exchange information, thus avoiding matching processes.

The response-based model has become popular for supply chain strategy and collaboration due to its ability to help organizations reduce operational costs.

It is possible to share information in the supply chain, thus developing designs to make it easier to eliminate costs associated with asset management.

Hence, to learn more about the response-based business model ,refer to the link:

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Cash Received from Customers—Direct Method

Sales reported on the income statement were $112,000. The accounts receivable balance decreased $10,500 over the year.

Determine the amount of cash received from customers.

Answers

Answer:

The cash received or collected from the customers amounts to $122,500

Explanation:

Cash receipts is the sum of all the cash amounts collected or received from the sale of the goods and on accounts receivable.

Cash received or collected from the customer is computed as:

Cash collected from customer = Sales + Decrease in accounts receivable

where

Sales amounts to $112,000

Decrease in accounts receivable amounts to $10,500

Putting the values above:

= $112,000 + $10,500

= $122,500

Therefore, the cash amounts to $122,500, received from customers.

3 years ago and at that time recorded goodwill of $300,000. The Johnson Division's net assets, including the good amount of $650,000. The fair value of the division is estimated to be $620,000 and the implied goodwill is $270,000 Prepare Ayayai journal entry to record impairment of the goodwill. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit

Answers

Answer:

Explanation:

Since the fair value is less than the carrying value so the journal entry is recorded.

The journal entry is shown below:

Loss on impairment A/c Dr $30,000

              To Goodwill A/c $30,000

(Being loss on impairment is recorded)

Impairment = Initial goodwill - Implied goodwill

                   = $300,000 - $270,000

                   = $30,000

. Due to a car accident you receive a settlement from insurance of $50 a month for the next ten years. What is that worth to you today, assuming a 3% inflation rate?

Answers

Answer:

Worth  of Insurance settlement $426.5

Explanation:

Present value of Insurance settlement = P [ ( 1 - ( 1+r )^-n ) / r ]

Present value of Insurance settlement = 50 [ ( 1 - ( 1 + 3% )^-10 ) / 3%]

Present value of Insurance settlement = 50 [ ( 1 - ( 1 + 0.03 )^-10 ) / 0.03]

Present value of Insurance settlement = 50 [ ( 1 - ( 1 .03 )^-10 ) / 0.03]

Present value of Insurance settlement = 50 [ ( 1 - ( 1 .03 )^-10 ) / 0.03]

Present value of Insurance settlement = 50 [ ( 1 - 0.7441 ) / 0.03]

Present value of Insurance settlement = 50 [ 0.2559 / 0.03]

Present value of Insurance settlement = 50 x 8.53

Present value of Insurance settlement = 426.5

The fifteen-year bond yields 6.7% and has a coupon of 8.7%. If this yield to maturity remains unchanged, what will be its price one year hence? Assume annual coupon payments and a face value of $100.

Answers

Answer:

The price of the bond in year's time is $117.81

Explanation:

In calculating the value in a year's time I used the financial function present value in excel

The inputs required are:

rate=yield=6.7%

interest on par value at 8.7%=100*8.7%=8.7

Face value=$100

Number of years is 14years(15-1), it is assumed that calculation is done a year from now.

The formula for present value in excel =PV(rate,nper,pmt,(fv),(type))

By slotting the variables as above, the pv is $117.81 as found in the attached

Final answer:

Explanation of bond pricing when yield to maturity is unchanged with a detailed formula application.

Explanation:

The present value of the coupon payments should indeed be calculated using the full remaining maturity of the bond, which is 15 years. Let's correct the calculation accordingly:

Given:

- Coupon rate (C) = 8.7%

- Yield to maturity (YTM) = 6.7%

- Face value (FV) = $100

- Time to maturity (n) = 15 years

After one year, the bond will have 14 years remaining until maturity.

1. Calculate the coupon payment one year from now:

  Coupon payment = Coupon rate * Face value

                 = 8.7% * $100

                 = $8.70

2. Calculate the present value of the coupon payments:

  PV of coupons = Coupon payment * [(1 - (1 + YTM)^-n) / YTM]

                = $8.70 * [(1 - (1 + 0.067)^-15) / 0.067]

                ≈ $72.97

3. Calculate the present value of the face value received at maturity:

  Since the face value is received at maturity (15 years from now), its present value is simply $100 discounted back by 14 years:

  PV of face value = Face value / (1 + YTM)^n

                   = $100 / (1 + 0.067)^15

                   ≈ $48.37

Now, sum up the present values of the coupon payments and the face value to find the price of the bond one year hence:

Price = PV of coupons + PV of face value

     ≈ $72.97 + $48.37

     ≈ $121.34

Leo is 34 years old. He contributed $3,000 to a Roth IRA in 2015 and $2,000 in 2016. In 2018, he withdrew the entire balance, which had grown to $5,466. How much of Leo's withdrawal is taxable and subject to penalty?

Answers

Answer:

$466 is taxable and subject to penalty

Explanation:

The question is to determine the part of Leo's withdrawal that is taxable and then subject to penalty

Step 1:

What is Leo's contribution in 2015 = $3,000

What is his contribution in 2016 = $2,000

His total contribution = $3,000 + $2,000= $5,000

Step 2: We know that in 2018, Leo withdrew his entire balance which is = $5,466

This means, the excess on his contribution is interest

Leo's interest =$5,466 - $5,000= $466

Step 3:

The interest of $466, therefore, represents the interest on the $5,000 contributed and as such, since he withdrew the whole amount, the interest or the gain of $466 is taxable and the same $466 is subject to penalty

According to the law of comparative advantage, both individuals and nations will be able to produce a larger joint output if each productive activity is undertaken by Question 22 options: the high opportunity cost producer. the low opportunity cost producer. the producer who is able to hire workers at the lowest wage. the party that can complete the productive activity most rapidly.

Answers

Answer:

the low opportunity cost producer. 

Explanation:

A person or nation has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries or people.

For example, let's assume country x produces either 10 Apples or 5 oranges in 1 hour while country y produces either 20 Apples or 2 oranges in one hour. The opportunity cost for country x of producing apples and oranges are 0.5 and 2 respectively. While for country y, the oopportunity cost of producing apples and oranges are 0.1 and 10 respectively.

Country y has an opportunity cost and comparative advantage in the production of Apples while country x has a comparative advantage in production of oranges.

I hope my answer helps you

To buy your first home, you take out a 15 year (fully amortizing) mortgage for $400,000 which requires equal yearly payments. The effective annual interest rate is 3.6%. How much principal do you pay off in year 2?

a. $13,659.21
b. $21,318.27
c. $34,977.48
d. $41,895.75
e. None of the above

Answers

Answer:

The principal paid off in year two $21,318.27  

Explanation:

The arrangement for equal amount payable yearly to pay off the entire loan obligation (principal plus interest) is an annuity for 15years at 3.6%.

An annuity is a series of equal payment payable annually for certain  number of years where interest is charged at a particular rate.

We can work out the annual equal installment using the Present Value (PV) annuity formula below:

PV = A ×( (1- (1+r)^(-n))/r)

So we can apply this formula to the question

 PV - 400,000, r =3.6%= 0.036, n -15, A is equal instalment, not given.

400,000 = A ×( 1- (1.036)^(-15))/0.036

400,000 = A × 11.4359

A= 400,000/11.4359

A =34,977.47

Equal annual installment =$34,977.47

Now with the help of an amortization table we ascertain the amount of principal paid off in year 2:

Amortization Schedule

Bal @ beginning Interest    Installment Principal Paid Principal bal.

A                      B  = A *3.6% C            D= C - B      E =A-D

400,000.00   14,400.00   34,977.48   20,577.48   379,422.52

379,422.52   13,659.21   34,977.48   21,318.27  

The amortization table is a schedule showing how the loan would be paid over the loan period.

Note that the columns are labelled as A, B, C, D and E starting from the left hand-side respectively

The principal paid off in year two is $21,318.27 which is the bolded figure in  column D,

"Thomson Trucking has $21 billion in assets, and its tax rate is 30%. Its basic earning power (BEP) ratio is 11%, and its return on assets (ROA) is 5%. What is its times-interest-earned (TIE) ratio? Round your answer to two decimal places."

Answers

Answer:

2.85

Explanation:

Given that,

Assets value = $21 billion

Tax rate = 30%

Basic earning power (BEP) ratio = 11%

Return on assets (ROA) = 5%

Basic earning power (BEP) ratio = EBIT ÷ Total assets

11% = EBIT ÷ $21 billion

EBIT = 11% × $21 billion

        = $2.31 billion

ROA = Net Income ÷ Total Assets

5% = Net Income ÷ $21 billion

Net Income = 5% × $21 billion

                   = $1.05 billion

Earnings before tax:

= Net income ÷ (1 - tax)

= $1.05 billion ÷ (1 - 0.3)

= $1.5 billion

Interest Expense = EBIT - EBT

                            = $2.31 billion - $1.5 billion

                            = $0.81 billion

Therefore,

Times-interest-earned (TIE) ratio:

= EBIT ÷ Interest expense

= $2.31 billion ÷ $0.81 billion

= 2.85

Assume that you have a subsidiary in Australia. The subsidiary sells mobile homes to local consumers in Australia, who buy the homes using mostly borrowed funds from local banks. Your subsidiary purchases all of its materials from Hong Kong and pays Hong Kong dollar. The Hong Kong dollar is tied to the U.S. dollar. Your subsidiary borrowed funds from the U.S. parent, and must pay the parent $100,000 in interest each month. Australia has just raised its interest rate in order to boost the value of its currency (Australian dollar). The subsidiary’s cost of purchasing materials measured in Australian dollar will ____________. A. increase B. decrease C. not change

Answers

Answer:

B. decrease

Explanation:

The subsidiary's cost of purchasing materials measured in Australian dollar will decrease. The subsidiary in Australia sells mobile homes. It borrows funds from local bank and purchases material from Hong Kong and pays Hong Kong in HK$ which is tied to US dollar. So when Australian dollar appreciates against the Hong Kong dollar, it will appreciate against US dollar as the Hong Kong dollar is tied to US dollar. The subsidiary will pay decreased cost of purchasing material due to appreciations of A$ by increasing interest rate in Australia.  

Final answer:

The cost of purchasing materials measured in Australian dollars will increase for the subsidiary. This is due to the rise in interest rates in Australia, which boosts the value of the Australian Dollar. As the Australian dollar gets stronger, it will require more dollars to purchase the same amount of Hong Kong dollars (linked to U.S. dollar).

Explanation:

The subsidiary's cost of purchasing materials measured in Australian dollars would increase. This is due to the fact that Australia has raised its interest rates, which consequently would lead to a boost in the value of its currency (Australian dollar). In monetary value terms, as the Australian dollar gets stronger, you will require more dollars to purchase the same amount of Hong Kong dollars (which is linked to the U.S. dollar). Consequently, the rate of exchange between the Australian dollar and the Hong Kong dollar will change, more specifically it will increase. As a result, it will cost more in terms of the Australian dollar to buy the same amount of materials from Hong Kong.

Learn more about Currency Exchange and Interest rate here:

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The opportunity cost of attending college is likely to be highest for a high school graduate _______A. who can immediately take over the family business.B. who has access to student loans.C. who is very intelligent.D. whose family is extremely wealthy.

Answers

Answer:

who can immediately take over the family business.

Explanation:

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

For a student who chooses to go to college, his opportunity cost is the opportunity of running the family business he forgoed when he decided to go to college.

I hope my answer helps you

What is the present worth of these future payments? (a) $25,500 eight years from now at 12% com-pounded annually. (b) $58,000 twelve years from now at 4% com-pounded annually. (c) $25,000 nine years from now at 6% compounded annually. (d) $35,000 four years from now at 9% compounded annually.

Answers

Answer:

a. PV        =  $10,299.02

b. PV        =  $36,226.63

c. PV        =   $14,797.46

d. PV        =   $24,794.88

Explanation:

To solve this question, we use present value formula

           PV          =  C/(1+r)^n

Where PV          = Present value of a lump sum

              C         = Future amount to be discounted

               r          = Interest rate

               n         = Number of years

             

a.            PV        =  C/(1+r)^n

               C         = $25,500

               r          = 12%

               n         =  8

             PV        = $25,500 /(1+12%)^8

             PV        = $25,500 /(1+0.12)^8

             PV        = $25,500 /(1.12)^8

             PV        = $25,500 /2.475963176

              PV        = $10,299.02231

              PV        = $10,299.02

b.            PV        = C/(1+r)^n

               C         = $58,000

               r          =  4%

               n         =  12

             PV        =  $58,000 /(1+4%)^12

             PV        =  $58,000 /(1+0.04)^12

             PV        =  $58,000 /(1.04)^12

             PV        =   $58,000 /1.601032219

              PV        =  $36,226.62888

              PV        =  $36,226.63

c.            PV        = C/(1+r)^n

               C         = $25,000

               r          =  6%

               n         =  9

             PV        =  $25,000 /(1+6%)^9

             PV        =  $25,000 /(1+0.06)^9

             PV        =  $25,000 /(1.06)^9

             PV        =  $25,000 /1.689478959

              PV        = $14,797.46159

              PV        = $14,797.46

c.            PV        = C/(1+r)^n

               C         = $35,000

               r          =  9%

               n         =  4

             PV        =  $35,000 /(1+9%)^4

             PV        =  $35,000 /(1+0.09)^4

             PV        =  $35,000 /(1.09)^4

             PV        =  $35,000 /1.41158161

              PV        = $24,794.88239

              PV        = $24,794.88

You just signed a business consulting contract with one of your clients. The client will pay you $50,000 a year for five years for the service you will provide over this period. You anticipate the general inflation rate over this period to be 6%. If your desired inflation-free interest rate (real interest rate) is to be 4%, what is the worth of the fifth payment in present dollars? The client will pay the consulting fee at the end of each year.

Answers

Final answer:

The worth of the fifth payment in present dollars, given a 6% inflation rate and a 4% desired real interest rate, is approximately $31,046 after accounting for the effect of nominal interest of 10% over five years.

Explanation:

To calculate the worth of the fifth payment in present dollars considering an inflation rate of 6% and a real interest rate of 4%, we use the formula for the present value of a future payment:

Begin with the future value of the payment: $50,000.

Calculate the nominal interest rate, which is the sum of the real interest rate and the expected inflation rate. This gives us a nominal interest rate of 4% + 6% = 10%.

Adjust the future payment to present value using the formula Present Value = Future Value / (1 + Nominal Interest Rate)^Number of Periods.

For the fifth payment, Number of Periods is 5. Therefore, the present value of the fifth $50,000 payment is $50,000 / (1 + 0.10)^5.

Perform the calculation: Present Value = $50,000 / (1.10)^5 = $50,000 / 1.61051 ≈ $31,046.

Therefore, the worth of the fifth payment in present dollars is approximately $31,046.

All-Star Automotive Company experienced the following accounting events during 2018:

Performed services for $14,200 cash.
Purchased land for $7,200 cash.
Hired an accountant to keep the books.
Received $32,000 cash from the issue of common stock.
Borrowed $8,400 cash from State Bank.
Paid $4,200 cash for salary expense.
Sold land for $8,400 cash.
Paid $3,200 cash on the loan from State Bank.
Paid $4,400 cash for utilities expense.
Paid a cash dividend of $1,200 to the stockholders.

Prepare a statement of cash flows for 2018. Assume All-Star Automotive company had a beginning cash balance of $9,200 on January 1, 2018.

Answers

Answer:

Explanation:

The preparation of the Cash Flows from three Activities is presented below:  

a. Cash flow from Operating activities  

Performed services for cash $14,200

Less: Cash paid for salary expenses  -$4,200

Less: Cash paid for utilities expenses -$4,400

Net Cash flow from Operating activities $5,600

b. Cash flow from Investing activities  

Purchase of land - $7,200

Proceeds from the sale of land $8,400

Net Cash flow from Investing activities $1,200

c. Cash flow from Financing activities  

Cash receipt from the issuance of common stock $32,000

Borrowed cash from state bank $8,400

Les: Paid cash on the loan from state bank -$4,400

Less: cash dividend paid -$1,200

Net Cash flow from Financing activities $34,800

Net Cash flow from Operating activities $5,600

Net Cash flow from Investing activities $1,200

Net Cash flow from Financing activities $34,800

Add: Beginning cash balance $9,200

Ending cash balance                                                $50,800

Fourteen million office workers in the US have their online activities under constant surveillance, according to the Denver-based Privacy Foundation. Worldwide, it reckons the number of employees under such surveillance totals around 27 million people. According to the foundation's Workplace Surveillance Project the low cost of snooping technology is the main reason why employers are employing a _____approach to management. Herzberg Theory X Theory Y Theory Z scientific management 4

Answers

Answer:

The correct answer is letter "A": Theory X.

Explanation:

American economist Douglas McGregor (1906-1964) in Theory X and Theory Y tried to define employees' motivation at work. Theory X implies managers having the idea workers do not like being at work so they have to be constantly motivated and supervised to accomplish their duties effectively.

​Boulevard, Inc. uses the direct method to prepare its statement of cash flows. Use the following information reported for​ 2019: Sales​ Revenue, $ 40 comma 000 Interest​ Revenue, $ 700 Accounts​ Receivable, beginning​ balance, $ 13 comma 500 Accounts​ Receivable, ending​ balance, $ 30 comma 000 There were no amounts reported for Interest Receivable. Compute the total cash receipts.A.$25,900B.$53,200C.$28,000D.$13,200

Answers

Answer:

Total cash receipts is $24,200. This is not given as an option.

Explanation:

The accounts receivable balance represents the balance from sales yet to be settled by the customer. Interest receivable is the interest yet to be received from investment.

Given that for 2019:

Sales​ Revenue = $40,000

Interest​ Revenue = $700

Accounts​ Receivable(beginning​ balance) = $13,500

Accounts​ Receivable (ending​ balance) = $30,000

There were no amounts reported for Interest Receivable.

Since there is an Accounts receivable balance at the end of the year, it means that not all revenue was collected from customers. Similarly, since the interest receivables ending balance is nil, all the interest was collected.

Let the cash collected from sales to customers be t

As such,

$13,500 + $40,000 - t = $30,000

t = $13,500 + $40,000 - $30,000

t = $23,500

Total cash receipt = $23,500 + $700  = $24,200

Investors in closed-end funds who wish to liquidate their positions must a.sell their shares to other investors. b.sell their shares to the issuer at a discount to Net Asset Value. c.sell their shares to the issuer at a premium to Net Asset Value. d.sell their shares to the issuer for Net Asset Value. e.hold their shares to maturity

Answers

Answer:

The correct answer is letter "A": sell their shares to other investors.

Explanation:

Closed-end funds are pools of assets that at the beginning raise a fixed amount of income thanks to an Initial Public Offering (IPO) and later on trades in a public stock exchange. Close-end funds are said to provide higher returns than open-end funds. When investors have a position with a closed-end fund, to exit it the number of shares held must be sold to another investor.

1. Determine the utilization and the efficiency for each of these situations: a. A loan processing operation that processes an average of 7 loans per day. The operation has a design capacity of 10 loans per day and an effective capacity of 8 loans per day.

Answers

Answer:

Efficiency is 87.50% and Utilization is 70%

Explanation:

Actual ouput = 7 loans per day

Effective capacity = 8 loans per day

Design capacity = 10 loans per day

Therefore,

Efficiency = actual output÷effective capacity×100%

= 7 ÷ 8 × 100%

Efficiency = 87.50%

Utilization = actual output÷design capacity×100%

= 7 ÷ 10 × 100%

Utilization = 70%

After 15 years of employment in the airline industry, John started his own consulting company to use physical and computer simulation in the analysis of commercial airport accidents on runways. He estimates his average cost of new capital at 9% per year for physical simulation projects, that is, where he physically reconstructs the accident using scale versions of planes, buildings, vehicles, etc. He has established 18% per year as the MARR. What net rate of return on capital investments for physical simulation does he expect?

Answers

Answer:

9%

Explanation:

The first step is to understand the relevant terms in the question

Average Cost of New Capital

The cost of capital represents a required return rate (in percentage)  an organisation or an individual ( in the case of John) will need to make a capital project advantageous, worthwhile or profitable.

In the case of John, the Average Cost of New Capital is 9%

MARR - Minimum Acceptable Rate of Return

This rate also in percentage represents the lowest or minimum rate of return a business or an individual is able to accept in order to start a given project. It is usually based on the risk of the project as well as the alternate benefit foregone if other projects were accepted.

It is also called the Hurdle rate, or the cutoff rate.

John's MARR is 18%

Based on these,

John's Net rate of  return is calculated as follows

Minimum Acceptable Rate of Return - Average Cost of the New Capital

= 18% - 9% = 9%

An In the News article titled "Perpetuating Poverty: Lotteries Prey on the Poor" reports that poor people spend a larger percentage of their income on government-promoted gambling than do rich people. On the basis of this information, we can conclude that lotteries function as:_________.
A) An income tax.
B) A progressive tax.
C) A property tax.
D) A regressive tax.

Answers

Answer:

D) A regressive tax.

Explanation:

A regressive tax is one in which as the amount being taxed increases the tax on it reduces. Being regressive implies that there is reduction in the tax as the taxable amount increases.

In this case poor people are spending a larger percentage of their income on government promoted gambling than the percentage spent by rich people. So lotteries function as regressive tax tool.

The PCI Council was formed in 2006 to create safeguards designed to protect credit card data. Any merchant or service provider who accepts credit cards must follow the safeguards. True False

Answers

Answer:

True

Explanation:

In order to protect businesses who accept credit cards from their customers as forms of payment, the Payment Card Industry Security Standards Council (PCI SSC) also known as the Payment Card Industry Data Security Standard (PCI DSS)  it was established in 2006 by American Express. It helps in strengthening credit card holder data security to mitigate the credit card risks. The standard presents a benchmark against which businesses can compare and measure their own security policies

A variable annuity is a: A face amount certificate company B management company C fixed unit investment trust D participating unit investment trust

Answers

Answer:

D participating unit investment trust

Explanation:

A variable annuity is a contract between you and an insurance company. It serves as an investment account that may grow on a tax-deferred basis and includes certain insurance features, such as the ability to turn your account into a stream of periodic payments. You purchase a variable annuity contract by making either a single purchase payment or a series of purchase payments.

A variable annuity offers a range of investment options. The value of your contract will vary depending on the performance of the investment options you choose. The investment options for a variable annuity are typically mutual funds that invest in stocks, bonds, money market instruments, or some combination of the three.

The threat from substitutes is high when: a. switching costs are high. b. the substitute product's price is lower than the industry product's price. c. the quality of the substitute product is lower than the quality of the industry's product. d. the substitute product stimulates new process innovations within the industry.

Answers

Answer:

Option (b) is correct.

Explanation:

Substitute goods refers to the goods which are having positive cross price elasticity of demand. This means that there is a direct relationship between the price of one good and the quantity demanded for its substitute good.

Therefore, the threat from substitutes is high when the price of substitute is lower the price of particular good because by offering a lower price for the same product induces consumers to buy product from this seller.

The substitute goods are having the similar characterstics and provide same level of satisfaction. That's why the consumers easily switch to the product with a lower price.

Answer:

The correct answer is letter "B": the substitute product's price is lower than the industry product's price.

Explanation:

Threats are all external factors that potentially represent a disadvantage for firms. When it comes to competition between companies, if one of them decides to set the price of their goods or services below the industry's standard, the scenario represents a threat for the competitors since consumers are price-driven which means more of them will prefer to purchase the products of the company offering at lower prices.

Big Thumbs Company manufactures portable flash drives for computers. Big Thumbs incurs monthly depreciation costs of $15,000 on its plant equipment. Also, each drive requires materials and manufacturing overhead resources. On average, the company uses 10,000 ounces of materials to manufacture 5,000 flash drives per month. Each ounce of material costs $3.00. In addition, manufacturing overhead resources are driven by machine hours. On average, the company incurs $22,500 of variable manufacturing overhead resources to produce 5,000 flash drives per month.In your calculations, round variable rate per flash drive to the nearest cent.Required:1. Create a formula for the monthly cost of flash drives for Big Thumbs.Total cost of flash drives = Fixed cost + (Variable rate x Number of flash drives)Total cost of flash drives = $ + ($ x Number of flash drives)2. If the department expects to manufacture 6,000 flash drives next month, what is the expected fixed cost (assume that 6,000 units is within the company's current relevant range)?$What is the total variable cost (assume that 6,000 units is within the company's current relevant range)?$What is the total manufacturing cost (i.e., both fixed and variable) (assume that 6,000 units is within the company's current relevant range)?$

Answers

Answer:

1.TC = $15,000 + (10.50 x number of of drives)

2.TFC = $15,000

3.Total Variable Cost = $63,000

4. Total Manufacturing. Cost = $78,000

Explanation:

Big Thumbs incurs monthly depreciation costs of $15,000 on its plant equipment

-it uses 10000 ounces of materials to manufacture 5000 flash drives

-

total cost

1.TC = $15,000 + (10.50 x number of of drives)

2. The total fixed cost will still be

TFC = $15,000

3.Total variable cost

10.5*6000 units of flash drives

Total Variable Cost = $63,000

4. total manufacturing cost

fixed cost +variable cost

$15000+$63000

Total Manufacturing. Cost = $78,000

Final answer:

The total monthly cost for flash drives at Big Thumbs consists of a fixed cost of $15,000 and a variable cost of $10.50 per flash drive. If the company plans to produce 6,000 flash drives, the total variable cost is $63,000 and the total manufacturing cost is $78,000.

Explanation:

The total cost of flash drives for Big Thumbs consists of fixed and variable costs. The fixed cost, which includes the monthly depreciation costs of the plant equipment, is $15,000. This amount remains the same regardless of the number of flash drives manufactured.

To calculate the variable rate per flash drive, we first identify the variable costs. The company uses 10,000 ounces of materials per month to manufacture 5,000 flash drives, and each ounce of material costs $3.00, yielding a material cost of $30,000. The variable manufacturing overhead resources amount to $22,500. Therefore, the total variable cost per month is the sum of these two costs, which equals $52,500. Since this cost is incurred to produce 5,000 flash drives, the variable cost per flash drive is $52,500 divided by 5,000, or $10.50.

If the department expects to manufacture 6,000 flash drives next month, the fixed cost remains at $15,000, while the total variable cost increases to $10.50 times 6,000, or $63,000. Thus, the total manufacturing cost, which is the sum of the fixed and variable costs, is $15,000 plus $63,000, totaling $78,000.

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