Answer:
The correct answer is letter "A": standardization.
Explanation:
Bureaucracy refers to a system in which hierarchy is well-defined within an organization. They follow a centralized, top-down approach in making decisions being the lower layers the most affected since the transmission of information tends to be slow. Bureaucracies aim to provide a standard method of working for every organizational activity.
Answer: A. Standardization
Explanation: Bureaucracy in different terms can be understood as government by bureaus (administrative units) or their administrators or officers. In business and the organizational theory, it is a system of administration based upon organisation into bureaus, division of labour, a hierarchy of authority, etc., designed to dispose of a large body of work in a routine manner. As such it is quite centered around structured around hierarchy, standardization, and specialization. Standardization as key component of bureaucracies indicates they're characterised by excessive red tape and routine all in a bid to comply (or evaluate by comparing) with a standard. In this, theoretically bureaucracies improve efficiency while ensuring equal opportunities (which is always not the case).
An engineer places $7,000 at the end of every year into a retirement account for 22 years. If the account into which the savings was placed earns 9% per year, how much was in the account at the end of the engineer's career? Express your answer in $ to the nearest $1,000.
Answer:
$440,113.37
Explanation:
Since the engineer is placing $7,000 at the end of every year for the 22 years, therefore the amount which will be saved by him at the end of 22 years shall be determined through the future value of annuity formula which is given as follows:
Amount after 22 years=R[((1+i)^n-1)/i]
In the given question
R=amount saved by engineer per year=$7,000
i=interest rate involved=9%
n=number of payment to be made=22
Amount after 22 years=7,000[((1+9%)^22-1)/9%]
=$440,113.37
To find the amount in the engineer's retirement account at the end of their career, you can use the compound interest formula with the given details.
Explanation:The amount in the account at the end of the engineer's career can be calculated using compound interest formula:
Principal amount: $7,000 annually for 22 yearsInterest rate: 9%Time period: 22 yearsThe formula to calculate the final amount is: $7,000 * [(1 + 0.09)^22 - 1] / 0.09By calculating the above formula, the engineer would have approximately $440113.36 in the retirement account at the end of their career.
On January 3, 2009, Acme Corp. owned a machine that had cost $300,000. The accumulated depreciation was $180,000, estimated salvage value was $18,000, and fair market value was $480,000. On January 4, 2009, this machine was irreparably damaged by Reed Corp. and became worthless. In October 2009, a court awarded damages of $480,000 against Reed in favor of Acme. At December 31, 2009, the final outcome of this case was awaiting appeal and was, therefore, uncertain. However, in the opinion of Acme's attorney, Reed's appeal will be denied. As of December 31, 2009, do we have a loss contingency, a gain contingency, or both? How should this be accounted for in the financial statements? Be sure to use the requirements of Codification Section 450 (FASB 5) to explain your answer.
Answer:
ASC 450-Accounting Standards codification (FASB 5) provides rules for acceptable accounting practices in relation to both loss and gain contingencies.
GAIN CONTINGENCY, but not loss contingency, is a matter of importance in the given cases. In the event of a favorable judgment on Acme, $480000 will be received which will be considered revenue because the total loss due to damage to the machinery has already been deducted from revenue on the basis of USGAAP.
LOSS CONTINGENCY is not the case. Because there is no damage or loss to REED and, in the event of an unfavorable outcome, Acme is not expected to pay for any damages, except for possible legal fees. In the case of an appeal brought by the opponent, the possibility of claiming legal expenses is very remote.
Following two point are important in deciding the application of the FASB 5
1. Acme had won the case in the lower court.
2. Amount of gain is quantifiable in the event of a favorable outcome.
As provided in the FASB 5, recognisation of such gain in financial statements leads to recognisation of future income and it is against the prudence concept of accountancy.
In view of all the issues, management is advised to disclose the amount of potential gain, but does not include income statement.
Suppose you short-sell 300 shares of XYZ stock at $30.19 with a commission charge of 0.5%. Supposing you pay commission charges for purchasing the security to cover the short-sale, how much profit have you made if you close the short-sale at a price of $29.87?
Answer:
$5.91
Explanation:
Data provided in the question:
Number of shares sold = 300
Selling price = $30.19
Commission charge = 0.5% = 0.005
Purchasing price = $29.87
Now,
Total selling price = 300 × $30.19
= $9057
Proceeds from selling =Total selling price - Commission
= $9057 - [0.005 × $9057 ]
= $9,011.715
Now
Purchasing price of the shares = 300 × $29.87 = $8,961
Total amount paid for purchasing
= Purchasing price of the shares + Commission
= $8,961 + [0.005 × $8,961 ]
= $8,961 + $44.805
= $9,005.805
Hence,
Profit = Proceeds from selling - Total amount paid for purchasing
= $9,011.715 - $9,005.805
= $5.91
The profit that you would make if you close the sale at this price is $5.9
The number of shares of the stock that was short sold = 300
charge of commission = 0.5%
The selling price = $30.19
The closing price = $29.87
The amount made = 300 x 30.19
= $9057
Gains made from the sale
= 9057 - [0.5% x 9057]
= 9057 - 45.285
= 9011.7
The closing price x number of shares
= 29.87 x 300
= 8961 dollars
Similarly,
8961 + [0.005 x 8961]
= 8961 + 44.805
= 9005.8
The difference = 9011.7 - 9005.8
= $5.9
In conclusion the amount of profit made is $5.9
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1 Madison Harris, the owner, invested $6,800 cash and $33,800 of photography equipment in the company in exchange for common stock. 2 The company paid $2,400 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $910 cash. 20 The company received $3,631 cash in photography fees earned. 31 The company paid $705 cash for August utilities. Prepare an August 31 trial balance for Pose-for-Pics.
Answer:
Trial Balance
Account DEBIT CREDIT
Cash 6,416** -
Account Receivable
Prepaid Insurance 2,400 -
Supplies 910
Equipment 33800
Common Stock 40600*
photography fees 3631
utilities expense 705
TOTAL 44,231 44,231
Explanation:
*Common stock:
6,800 cash + 33,800 equipment = 40,600 total investment
**to calculate cash we need to do a T account
CASH
DEBIT CREDIT
6800
2400
910
3631
705
10,431 4,015
BAL: 6,416
The rest of the account are just used once so we do't have to do T-accounts to keep track of them
Manufacturer's Inc. estimates that its interest charges for this year will be $700 and that its net income will be $3,000. Assuming its average tax rate is 30 percent, what is the company's estimated times-interest-earned ratio?
Answer:
TIE = 4,985.71
Explanation:
[tex]TIE = \frac{EBIT}{interest \: expense}[/tex]
net income / (1 - tax-rate) = Earnings before taxes
3,000 / 0.7 = 4,285.71
Earnigns before taxes + interest = EBIT (earnings before interest and taxes)
4,285.71 + 700 = 4,985.71
Manufacturer's Inc company's estimated times-interest-earned ratio is 7 times, assuming its average tax rate is 30% and fixed interest charges are $700.
What is the Time-Interest-Earned ratio?The Times-interest-earned ratio is a valuable measure for determining a company's ability to repay the interest imposed on any sort of borrowing. A high ratio implies that the company's earnings are sufficient to repay its debt obligations.
Time-Interest-Earned ratio = [tex]\dfrac{\rm\,EBIT}{\rm\,Interest\,Charges}[/tex]
Given that the net income is $3,000 which includes the interest charges and tax expense deductions. So, to get Earnings before Interest and Taxes we have to add back interest charges and tax expenses.
[tex]\rm\,EBIT = \rm\,Net \,income + Interest\,Charges + Taxes= \$3,000 + \$700 + \$1286= \$ 4,986[/tex]
= [tex]\rm\,Times\, Interest\,Earned\,ratio =\\\\ \dfrac{\rm\,EBIT}{\rm\,Interest\,Charges}\\\\= \dfrac{\rm \$\,4,986}{\rm\$700}\\\\ = \rm\,7\,times[/tex]
Hence, the manufacturer's Inc company's estimated times-interest-earned ratio is 7 times.
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Wilson, Inc., has a current stock price of $46.00. For the past year, the company had net income of $6,800,000, total equity of $21,690,000, sales of $40,100,000, and 5.2 million shares of stock outstanding.
1. What are eamings per share (EPS)? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.)
2. What is the price-eamings ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
1. What are eamings per share (EPS)? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.)
Answer: $ 1.31 / share
2. What is the price-eamings ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer: 35.11
Explanation:
Earning Per Share (EPS) = Net Income - Preferred dividends / Outstanding Number of Share
Earning Per Share (EPS) = $6,800,000 - 0 / 5,200,000 shares
Earning Per Share (EPS) = $6,800,000 / 5,200,000 shares
Earning Per Share (EPS) = $1.31 / share
Price earning ratio = Share price / Earning per share
Price earning ratio = $46 per share / $1.31 per share
Price earning ratio = $46 / $1.31
Price earning ratio = 35.11
Suppose that Spain and Austria both produce fish and olives. Spain's opportunity cost of producing a crate of olives is 5 pounds of fish while Austria's opportunity cost of producing a crate of olives is 10 pounds of fish. By comparing the opportunity cost of producing olives in the two countries, you can tell thatSpain has a comparative advantage in the production of olives andAustria has a comparative advantage in the production of fish. Suppose that Spain and Austria consider trading olives and fish with each other. Spain can gain from specialization and trade as long as it receives more than5 pounds of fish for each crate of olives it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than1/5 crate of olives for each pound of fish it exports to Spain. Based on your answer to the last question, which of the following prices of trade (that is, price of olives in terms of fish) would allow both Austria and Spain to gain from trade
12 pounds of fish per crate of olives
2 pounds of fish per crate of olives
9 pounds of fish per crate of olives
6 pounds of fish per crate of olives
Answer:
Spain has a comparative advantage in the production of olives and;
Austria has a comparative advantage in the production of fish
9 pounds of fish per crate of olives (being more favorable to Spain)
6 pounds of fish per crate of olives (being more favorable to Austria)
Explanation:
Spain renounce to 5 pounds of fish to produce olives while Austria to 10
threfore is much better in competitive term for Spain as the opportunity cost is lower
The opposite is true for Autria regarding fish production. is better producing that as renounce to less olives than Spain
Austria will sale above purchase olive for less than 10
while Spain will sale for more than 5
Given this requirement there are two options which allow for trade and generate gain for both countries.
In international trade involving Spain and Austria, the best price of trade, or 'exchange rate', that benefits both countries is '6 pounds of fish per crate of olives'. This accounts for both nations' opportunity costs while ensuring mutual benefits.
Explanation:Based on the given opportunity costs, Spain has a comparative advantage in producing olives and Austria has a comparative advantage in producing fish. The opportunity cost for Spain to produce one crate of olives is 5 pounds of fish while for Austria it is 10 pounds of fish.
For the trade to be beneficial to both countries, Spain needs to receive more than 5 pounds of fish for each crate of olives it exports to Austria. Similarly, Austria needs to receive more than 1/5 crate of olives for each pound of fish it exports to Spain. So, analyzing the four options, the price of trade that would benefit both countries is '6 pounds of fish per crate of olives'.
This is more than Spain’s opportunity cost of 5 pounds of fish but less than Austria’s opportunity cost of 10 pounds of fish, making it a beneficial trade scenario for both countries.
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The Madden Company uses a process costing system. During September the mixing department transferred out 65,000 units. The September 30th work-in-process inventory in the mixing department consisted of 22,000 equivalent units of material and 20,150 equivalent units of labor and overhead. The cost per equivalent unit was $5.50 for materials and $5.00 for labor and overhead.
The total balance in the work-in-process inventory account on September 30th was______.
Answer:
Total balance in the work-in-process inventory account on September 30th was $ 121000 + $ 110825= $ 231825
Explanation:
Cost per equivalent unit for material = $ 5.50
Equivalent units of materials = 22,000
Cost of Materials = $ 121,000
Cost per equivalent unit for labor and overhead = $ 5.50
Equivalent units of materials = 20,150
Cost of labor and FOH = $ 110825
Total balance in the work-in-process inventory account on September 30th was = Material + Labor + OH= $ 121000 + $ 110825= $ 231825
Marketing of the cochlear device was hampered by concerns about Select one: a. government funding b. safety and efficacy. c. safety d. weight
Answer: The correct answer is b) safety and efficacy.
Explanation:
A cochlear implant is a small, complex electronic device that can help to provide a sense of sound to a person who has lost hearing.
Although improvement to hearing have been recorded over time but it does not negate the fact that cochlear implant is a life long commitment. As such, the safety and efficacy of the device is a concern.
With the passage of Title VII of the Civil Rights Act of 1964, the Reconstruction Civil Rights Acts were no longer available as a means to pursue a claim of discrimination based on race.
a. True
b. False
Answer: B. False
Explanation: The Reconstruction Civil Rights Acts prohibits discrimination in making and enforcing contracts; prohibits the denial of civil rights by someone behaving as if they are acting on behalf of the government (under-color-of-state law); and prohibit concerted activity to deny someone their rights, based on race. Sections 1981 and 1983 of the Reconstruction Civil Rights Acts are the laws most frequently applied in the employment setting if a claim is not brought forth using Title VII. Though Title VII as part of a comprehensive statutory scheme to prohibit race and other discrimination, is the preferred method of enforcing employment discrimination claims.
The statement is false; Title VII of the Civil Rights Act of 1964 did not eliminate earlier Reconstruction Civil Rights Acts but rather added to the protections against employment discrimination.
Explanation:The statement that "With the passage of Title VII of the Civil Rights Act of 1964, the Reconstruction Civil Rights Acts were no longer available as a means to pursue a claim of discrimination based on race" is false. Title VII of the Civil Rights Act of 1964 added protections against discrimination in employment on the basis of race, color, national origin, religion, and sex, and it did not render the earlier Reconstruction Civil Rights Acts obsolete. Instead, it complemented and strengthened the existing laws that were put in place during the Reconstruction era, such as the Civil Rights Act of 1866 and the Civil Rights Act of 1875, which aimed to protect the rights of African Americans after the Civil War.
The earlier Civil Rights Acts, including those from the Reconstruction era, were designed to provide African Americans with a legal framework for civil rights and to combat discrimination. Although the effectiveness of these earlier acts was undermined over time due to various factors, including Supreme Court decisions that limited their scope, they were not repealed by the passage of Title VII and remained part of the legal landscape for addressing discrimination.
Actionable intelligence is the primary goal of modern- day Business Intelligence (BI) systems vs. historical reporting that characterized Management Information Systems (MIS). True False
Answer:
True
Explanation:
Info that may be monitored is actionable intelligence which also involves undertaking a tactical Plan to make the most of the data that is collected.BI (Business Intelligence) is a series of processes, architectures and innovations which transmutes raw data into useful information which promotes lucrative business activities. This is a services and software bundle to turn data to actionable intelligence.
Answer:
True
Explanation:
Management Information Systems (MIS) is a computerized based management system which is used to coordinate, control, analysis, and visualize information in an organization and to also make financial decision by organizing and programming the system in such that it produces reports regularly for effective management of an organization. In doing these analysis and coordination tasks, it involves business Intelligence (BI) systems and historical reporting of the company.
Indicate the effect each account has on retained earnings. (increase, decrease, or no effect)
a)advertising expense
b)Service revenue
c) Insurance expense
d) Salaries & Wages Expense
e) Dividends
f) Rent revenue
g) Utilities Expense
Answer:
Decrease:
a)advertising expense
c) Insurance expense
d) Salaries & Wages Expense
g) Utilities Expens
Descrease:
e) Dividends
Increase:
b)Service revenue
f) Rent revenue
Explanation:
The retained earnings accumulates the net income of every year.
As net income is determinate like:
revenues - expense = gross profit
expense will make this difference lower and therefore not beign able to help you These are the changes for:
adv expense
service revenue
insurance exepense salaries and wages
Dividends will also decrease RE as they represent a disribution of the accumualted earnings in favor of the stockholders
Finally revenues increase it as they make net income to increase as well.
Revenues increase retained earnings while expenses and dividends decrease them. The accounts in the question are either expense or revenue accounts, hence they either increase or decrease retained earnings respectively.
Explanation:Retained earnings represent the cumulative net income of a company that is retained by the company after the distribution of dividends to shareholders. Each account has a different effect on retained earnings:
Advertising Expense: This is an expense account and would decrease retained earnings.Service Revenue: This is a revenue account and would increase retained earnings.Insurance Expense: Being an expense account, it would decrease retained earnings.Salaries & Wages Expense: This is an expense account and thus would decrease retained earnings.Dividends: Dividends are paid out of retained earnings and therefore decrease these earnings.Rent Revenue: As a revenue account, this would increase retained earnings.Utilities Expense: This is an expense account, leading to a decrease in retained earnings.It's important to understand that revenue accounts increase retained earnings while expense accounts and dividends decrease it. This is because retained earnings are part of equity, which is determined by the formula: Equity = Assets - Liabilities. Revenues increase equity, while expenses and dividends reduce it.
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Culture makes organizations feel different from one another. Different companies, even companies in the same industry, just do things differently. You can experience this for yourself by going to two local supermarkets—one a part of a large chain and the other locally owned. Look around you. Does someone offer to help you when you walk in the door? Do the employees seem happier at one location compared to the other? Do people wear uniforms at one place but not at the other? All of these things can give you clues about the company’s culture.
Organizational culture includes values, visions, norms, and interactions among employees and is observed through company policies and employee behaviors. Subcultures within an organization may influence employee commitment and the overall culture is shaped by both observable practices and deeper values and assumptions. Understanding a company's culture is crucial for aligning employee experiences with their expectations.
Organizational culture is the set of shared values, norms, and practices that dictate how things are done within an organization. It encompasses various elements including the company policies, employee interactions, reward systems, and other observable characteristics. Learning and understanding an organization's culture often starts with observing its artifacts, however, a deeper understanding requires an insight into the values and assumptions that drive employee behaviors and decision-making processes.
Companies may also have different subcultures depending on departments or geographic locations, which can influence employees' commitment and attitudes toward the organization. The industry context can affect the organizational culture but does not determine it completely. Practices like dress codes, communication styles, and openness to questioning authority can vastly vary from one organization to another, which in turn affects the overall company culture.
Different organizations may have rules and policies that signal their culture. For instance, companies extending benefits to part-time workers signal that they value work-life balance and employee well-being. An organization’s culture is a critical aspect for potential employees to consider as it shapes their experience and aligns with their personal values and work preferences.
A common theme in the Asian culture is the emphasis on harmony and collectivism, as a result, the ________ form of decision making is typically used. A. top-down B. decentralizedC. centralized D. committee E. autocratic
Answer:
committee
Explanation:
The process in which a whole collection is involved in making the best and most rational decision is called committee decision making.
These committees should decide jointly about the best strategic arrangement, and the whole process should be done in agreement, unity, and harmony. Members should have the spirit of collectivism, should respect other people's decision and all share their input regarding the decision.
In Asian cultures, which emphasize collectivism and harmony, a centralized form of decision-making is typically utilized, reflecting the cultural preference for group consensus and respect for hierarchical structures in decision-making processes.
A common theme in the Asian culture is the emphasis on harmony and collectivism; as a result, the centralized form of decision making is typically used. Collectivism in cultures, especially in some Asian contexts, values the group over the individual and emphasizes group harmony and collective decision-making processes. This cultural preference aligns with practices like nemawashi in Japan, where consensus-building within a group is prioritized before making a decision. Such approaches contribute towards a more centralized decision-making style, where decisions may be deliberated in a group but ultimately, there is a central authority or hierarchy that plays a significant role in the final decision. This contrasts with more individualistic cultures where decentralized or autonomous decision-making processes are more common.
An RR sold shares of new stock issue of ABC Corp. to a customer at $20 per share. After a week, ABC is selling at $10. The RR offers to buy the shares from the customer at $20. Which is correct?
Answer:
It is a violation of NASD rules against guaranteeing a customer against loss.
Explanation:
In this case the RR is guaranteeing the customer against loss. The customer initially bought the shares for $20 the new price is $10. The RR now coming in to buy the shares above market value is a way to guarantee the customer against loss, and its a NASD violation.
The operations manager for the Blue Moon Brewing Co. produces two beers: Lite (L) and Dark (D). He can only get 675 gallons of malt extract per day for brewing and his brewing hours are limited to 8 hours per day. To produce a keg of Lite beer requires 2 minutes of time and 5 gallons of malt extract. Each keg of Dark beer needs 4 minutes of time and 3 gallons of malt extract. Profits for Lite beer are $3.00 per keg and profits for Dark beer are $2.00 per keg. The breweryâs goal is to maximize profits.
1. What is the time constraints?
Answer:
2L + 4D = 480 {L = Lite Bear, D = Dark Bear, 480 = minutes in 8 hours}
Explanation:
The function to be maximised :
Profit Function = Price x Quantity (of Lite & Dark Bears) = 3L + 2D ; where-
L = Lite Bear, D = Dark Bear
Constraint 1 [Time Constraint] :- 2L + 4D = 480 ; where-
L = Lite Bear, D = Dark Bear, 480 = minutes in 8 hours
2 = minutes required per unit Lite Bear, 4 = minutes required per unit Lite Bear, 480 = minutes in total 8 hours (8x60) {∵1hr = 60mins}
Similarly, Constraint 2 [Malt Extract Constraint] :- 5L + 3D = 675
The time constraints for the Blue Moon Brewing Co.'s brewing operations are set at 480 minutes or 8 hours per day. Lite beer requires 2 minutes per keg and Dark beer needs 4 minutes per keg.
Explanation:The time constraint in this case is determined by the available brewing hours and the amount of time it takes to produce each type of beer. From the given, the operations manager of Blue Moon Brewing Co. has 8 hours per day for brewing beer. Converted to minutes, this equals 480 minutes (8 hours x 60 minutes/hour). To produce a keg of Lite beer requires 2 minutes and each keg of Dark beer takes 4 minutes. Therefore, to maximize profits the brewing should not exceed 480 minutes per day using the optimal combination of brewing Lite and Dark beer.
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Ray Bond sells handcrafted yard decorations at county fairs. The variable cost to make these is $20 each, and he sells them for $50. The cost to rent a booth at the fair is $150. How many of these must Ray sell to break even
Answer:
5 units
Explanation:
Breakeven point is the point or number of units sold that makes the cost equal with the revenue generated. In other words, it is the point in which the profit or loss made by an entity is 0.
Given;
Variable cost per unit = $20
Selling price per unit = $50
Fixed cost = cost of rent = $150
Let the number of units to be sold be c
Total revenue = 50c
total cost = 20c + 150
To break even, total revenue = total cost
20c + 150 = 50c
50c - 20c = 150
30c = 150
c = 5
Ray must sell 5 units to break even.
The 2018 financial statements of BNSF Railway Company report total revenues of $19,548 million, accounts receivable of $1,189 million for 2018 and $955 million for 2017. The company’s accounts receivable turnover for 2018 is:A) 16.4 daysB) 20.5 timesC) 18.2 daysD) 18.2 timesE) None of the above
Answer:
D) 18.2 times
Explanation:
The accounts receivable turnover is determined by dividing the total credit revenues by the average receivables.
The average receivables is the sum of the opening and closing receivable balances divided by 2.
The average receivables is ( $ 1,189 + $ 955) / 2 = $ 1,072
The total revenues in the absence of other information is considered as credit sales.
Average receivables turnover = $ 19,548 / $ 1,072 = 18.24 times
Explain how each of the following transactions generates two entries—a credit and a debit—in the American balance of payments accounts, and describe how each entry would be classified: a. An American buys a share of German stock, paying by writing a check on an account with a Swiss bank. b. An American buys a share of German stock, paying the seller with a check on an American bank. c. The French government carries out an official foreign exchange intervention in which it uses dollars held in an American bank to buy French currency from its citizens. d. A tourist from Detroit buys a meal at an expensive restaurant in Lyons, France, paying with a traveler's check. e. A California winegrower contributes a case of cabernet sauvignon for a London wine tasting. f. A U.S.-owned factory in Britain uses local earnings to buy additional machinery.
The balance of payments records transactions including credit and debit entries for various international exchanges involving services, goods, financial instruments, and unilateral transfers. These transactions illustrate economic activities that impact the trade balance, current account, and financial accounts, demonstrating the complexity of international finance.
Explanation:The balance of payments is a record of all transactions made between entities in one country and the rest of the world over a specific period. Each transaction results in a credit and a debit in the balance of payments accounts. Here's how the given transactions generate entries in the American balance of payments accounts:
An American buys a share of German stock, paying by writing a check on an account with a Swiss bank: Debit in the financial account (capital outflow as the payment goes out), and credit in the balance of payments (a reduction in U.S. liabilities, as the Swiss bank account is debited).An American buys a share of German stock, paying the seller with a check on an American bank: Debit in the financial account (capital outflow to Germany), and credit in the U.S. bank liabilities (as the bank's assets are reduced).The French government carries out an official foreign exchange intervention using dollars held in an American bank to buy French currency: Debit in the reserve assets of the U.S. (use of U.S. currency reserves), and credit in the financial account (decrease in foreign holdings of the dollar).A tourist from Detroit pays for a meal in France with a traveler's check: Debit in the current account (service import - the meal), and credit in the financial account (decrease in foreign liability as the traveler's check is used).A California winegrower donates wine for a London tasting: Debit in the current account (goods export without a financial counterentry, is treated as a gift), and credit in unilateral transfers (as it is a gift to the U.K.).A U.S.-owned factory in Britain uses local earnings to buy additional machinery: Debit in the financial account (investment abroad), and credit in the firm's reinvestment (earnings not repatriated).These transactions reflect economic activities that affect the trade balance, the current account, and financial accounts differently, showing the intricacies of international financial flows.
The balance of payments accounts record all economic transactions between residents of a country and the rest of the world over a specific period.
These transactions are categorized into two main accounts: the current account, which includes trade in goods and services, income receipts and payments, and unilateral transfers; and the capital account, which includes capital transfers and the acquisition and disposal of non-produced, non-financial assets. Each transaction has two entries: a credit (an increase in foreign exchange receipts or a decrease in payments) and a debit (an increase in foreign exchange payments or a decrease in receipts).
a. An American buys a share of German stock, paying by writing a check on an account with a Swiss bank.
- Credit: The purchase of foreign stock is a capital outflow and is recorded as a debit in the capital account.
- Debit: The payment for the stock from a Swiss bank account is a financial outflow and is recorded as a credit in the financial account.
b. An American buys a share of German stock, paying the seller with a check on an American bank.
- Credit: This is also a capital outflow (debit in the capital account) as in (a).
- Debit: The payment from an American bank account does not affect the foreign exchange position and is not recorded in the balance of payments.
c. The French government carries out an official foreign exchange intervention in which it uses dollars held in an American bank to buy French currency from its citizens.
- Credit: The French government's purchase of its own currency using dollars is a reserve asset (an increase in official reserve assets is a credit in the financial account).
- Debit: The dollars used in the transaction are a decrease in liabilities to foreign official institutions and are recorded as a debit in the financial account.
d. A tourist from Detroit buys a meal at an expensive restaurant in Lyons, France, paying with a traveler's check.
- Credit: The purchase of a service (meal) by a foreigner in the home country is an export of services (credit in the current account).
- Debit: The payment for the meal with a traveler's check is a decrease in foreign exchange reserves or an increase in liabilities and is recorded as a debit in the financial account.
e. A California winegrower contributes a case of cabernet sauvignon for a London wine tasting.
- Credit: The contribution of wine is considered an export of goods (credit in the current account).
- Debit: There is no direct payment, but the value of the wine is recorded as a debit in the current account, offsetting the credit for the export.
f. A U.S.-owned factory in Britain uses local earnings to buy additional machinery.
- Credit: The purchase of machinery by a foreign subsidiary using local earnings is a direct investment (credit in the financial account).
- Debit: The expenditure on machinery is also a direct investment (debit in the financial account), but since it is financed with local earnings, it does not affect the balance of payments.
In summary, each transaction involves both a credit and a debit entry in the balance of payments, and these entries are classified according to the nature of the transaction, whether it affects the current account, capital account, or financial account.
Siamtop Inc. offers a 15-year coupon bond with semiannual payments. The yield to maturity is 7.34 percent and the bonds sell at 96 percent of par. What is the coupon rate?
A. 6.90 percent
B. 5.80 percent
C. 6.40 percent
D. 7.50 percent
Answer:
A. 6.90 percent
Explanation:
Yield to maturity = [Annual Interest + (Par value - Market Value)/ no of year to Maturity ] / [(Par value - Market Value)/2]
0.0734 = [ Annual Interest + ( 100% - 96% ) / 15 ] / [ (100% + 98% ) / 2]
0.0734 = [ Annual Interest + ( 1.00 - 0.96 ) / 15 ] / [ (1.00 + 0.98 ) / 2]
0.0734 = [ Annual Interest + ( 0.04 ) / 15 ] / [ 1.98 / 2]
0.0734 = [ Annual Interest + 0.0027 ] / 0.99
0.0734 x 0.99 = Annual Interest + 0.0027
0.072666 - 0.0027 = Annual Interest
Annual Interest = 0.069966 = 7% (Rounded off)
The returns on the Bledsoe Small-Cap Fund are the most volatile of all the mutual funds offered in the 401(k) plan. Why would you ever want to invest in this fund? When you examine the expenses of the mutual funds, you will notice that this fund also has the highest expenses. Does this affect your decision to invest in this fund?
Answer:
The yields are perhaps the most unpredictable for the small cap fund since the securities in this account are the most risky. It does not mean that the fund is awful, only that the danger is greater, and thus the overall return is greater.If you are prepared to accept the extra risk in expectancy of a greater return, you should like to put money in this fund. The increased costs for this Fund will be anticipated.Small cap funds typically have higher spending due largely to greater operating costs, along with lower resource analysis.
The price of a stock on February 1 is $84. A trader buys 200 put options on the stock with a strike price of $90 when the option price is $10. The options are exercised when the stock price is $85. The trader’s net profit or loss is:
A.Loss of $1,000
B.Loss of $2,000
C.Gain of $200
D.Gain of $1000
Answer:
The net loss of the trader amounts to $1,000, which means the correct option is A
Explanation:
The payoff is computed as:
Payoff = Strike price - Option's Stock price
where
Strike price is $90
Option's Stock Price is $85
Putting the values above:
Payoff = $90 - $85
= $5 per option
The trader bought 200 options, so the payoff would be:
Payoff = Options × Price per option
= 200 × $5
= $1,000
And the option cost would be:
Option cost = Options × Option Price
= 200 × $10
= $2,000
So, there computing net loss or gain as:
Net loss or gain = Payoff - Option cost
= $1,000 - $2,000
= $1,000 ( net loss)
Therefore, the correct option is A
The trader bought 200 put options and sold them at a loss due to the cost of obtaining the options, resulting in a total loss of $1,000.
Explanation:In this scenario, you purchased 200 put options. Put options give you the right to sell a stock at a set price. In this case, it was $90. You then exercised those options when the stock was $85. So, you essentially bought the stock for $85 and sold it for $90, netting you $5 profit per option. However, you initially paid $10 for each option. So, each put option resulted in a net loss of $5 ($5 profit - $10 cost). With 200 put options, your total loss would be $1,000 (200 options x $5 loss per option).
A. Loss of $1,000
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On a public ballot, a state legislature places a question relating to legalization of marijuana for medicinal use. In addition, the legislature passes a law that bans corporations from advertising in favor of or opposing the ballot question. T
he basis for this ban is to ensure that corporations do not have too much influence on the voters. Is the ordinance constitutional?
a.Yes, because commercial speech has only partial First Amendment protection.
b.No, because it concerns a question on a public ballot.
c.Yes, because the government is advancing a substantial government interest.
d.No, because the ban includes advertising that may not be protected by the First Amendment.
e.No, because the government has banned politically oriented commercial speech.
Answer:
The ordinance is NOT constitutional because the ban includes advertising that may not be protected by the first amendment.
Explanation:
First Amendment: This is law that prevents the government from making a law which prohibit the free exercise of religion or freedom of speech. It was further extended by the supreme court in 1976 to cover commercial speech
Answer: The answer is d
Explanation:
The constitution of any given nation prescribes the behaviour of officials of government and the entire citizenry. It is the basis on which other laws derive their legality or otherwise. It is also a reference point for adjudging a course of action as being constitutional or otherwise. In the constitution there are some fundamental human right which are guaranteed by the constitution one of them is the freedom of speech, it states that every person shall be entitled to freedom of expression including freedom to hold opinion and to receive information without interference. The doctrine of commercial speech fall under the freedom of speech. Therefore, In this question , the question is , is the ban constitutional or not constitutional, the ban is not constitutional because the ban includes advertising that may not be protected by the first Amendment.
Bank A (Dollars in Millions) Balance Statement Assets Liabilities and Equity Cash $ 850 Deposits $6,475 Securities $1,925 Other Borrowings $1,645 Loans $5,400 Equity $1,030 Other assets $ 975 Total Assets $ 9,150 Total Liabilities and Equity $ 9,150 Income Statement: Interest on Loans $ 450 Interest on securities $ 95 Interest Expense $ 246 Noninterest Income $ 78 Noninterest Expense $ 112 Provision for loan loss $ 35 Taxes $ 115 Net Income (NI) $115
A) Determine Bank A’s ROA?
B) Determine Bank A’s ROE ?
C) The bank’s profit margin is ?
D) The bank’s utilization is ?
Answer:
ROA = Net Income/Total Assets = $115/$9,150 × 100 = 1.25%ROE = Net Income/Shareholder Equity = $115/1,030 × 100 = 11.16%Profit Margin = Net Income/Net Revenue = $115/($450+$95+$78) $623 × 100 = 18.45%Utilization = Net Revenue/Total Assets = $623/$9,150 × 100 = 6.8%Explanation:
Returns on Assets (ROA): Profit percentage of total revenue earned from assets only. The higher the percentage the better for the company because it shows that company is using it's assets effectively.Return on Equity (ROE): Profit percentage of total revenue earned from shareholder's investment. It's a vital ratio for investors to analyze when they are deciding to invest in a company.Profit Margin: It shows the percentage of the actual profit in the revenue minus all costs.Utilization: It is the percentage to show that how effectively a company has utilized i'ts assets to earn profit.This answer provides calculations for Bank A's ROA (1.26%), ROE (11.17%), Profit Margin (14.8%), and Utilization (59.02%).
Explanation:The subject of this question is banking, a financial aspect of Business. Here's how to calculate each requested value:
Return On Assets (ROA) is found by dividing Net Income by Total Assets. So, ROA = Net Income / Total Assets = $115 / $9,150 = 0.0126 or 1.26%. Return On Equity (ROE) is calculated by dividing Net Income by Equity. So, ROE = Net Income / Equity = $115 / $1,030 = 0.1117 or 11.17%. The bank's Profit Margin is calculated by dividing Net Income by (Interest on Loans + Interest on Securities + Non-interest Income). So, Profit margin = Net Income / (Interest Income + Non-interest Income) = $115 / ($450 + $95 + $78) = 0.148 or 14.8%. The bank's Utilization is calculated by dividing Loans by Total Assets. So, Utilization = Loans / Total Assets = $5,400 / $9,150 = 0.5902 or 59.02%. Learn more about Bank Financial Metrics here:
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What is the present value of the following series of payments: $300 made at the end of every year starting in year 1 and ending in year 30 EXCEPT there will be no payment of any kind at the end of year 10? Interest is 7% annual rate compounded annually..
Answer:u are a wierdo mister
Explanation:u dont need brainly
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Pace's regular wage rate is $13.78 per hour, and the regular workweek is 40 hours with five 8-hour days. Compute the following:
a. The hours worked each day. (Ignore the one-minute tardiness on Friday.) Enter any fraction of an hour as a decimal. For example 1 1/2 hours would be entered as 1.5. Monday 8 hours Tuesday 10 hours Wednesday 8 hours Thursday 10.5 hours Friday 9.5 hours Saturday 4 hours Sunday 4 hours
b. The total hours worked 54 hours
For (c)-(e), round overtime rate to two decimal places and round your answers to the nearest cent. Use the rounded amounts in subsequent computations.
c. The regular earnings $ 551.2
d. The overtime earnings $
e. The total earnings $ i cant find the last two.
Answer:
(a) 40 hours (b)54hours (c) $551.2 (d) $62.01 (e) $744.12
Explanation:
(a)To calculate hours worked each day, since the regular work week is 40 hours with five 8 hours day
= Monday to Friday 8 hours
= 8 × 5
= 40 hours
(b) To calculate the total hours worked , we will first convert to 24 hour clock, then subtract the starting time from ending time to obtain the total hours
Monday = 8 am - 4pm ( 16 - 8) = 8hours
Tuesday = 8am - 6pm ( 18 - 8) = 10 hours
Wednesday = 8am -4pm (16 - 8)= 8hours
Thursday = 8.30 am - 6pm (18.5 - 8) = 10.5 hours
Friday = 8am - 4.30pm ( 18 - 8.5) = 9.5 hours
Saturday = 8am - 12pm (18 - 14) = 4 hours
Sunday = 8am -12pm (18 - 14)= 4hours
Total hours worked = 8 + 10 + 8 + 10.5 + 9.5 + 4 + 4
= 54hours
(c) To calculate the regular earning
Hours worked × regular wage rate
= 40 × 13.78
= $551.2
(d) To calculate the overtime earning
Overtime is used to be paid at rate of time and a half, since overtime occurs on the following days
Tuesday = 10 hours(8 .5 - 10) = 1.5
Thursday = 10.5 hours (8.5 - 10.5) = 2.0
Friday = 9.5 hours (8.5 - 9.5) = 1.0
Overtime hour × regular wage rate
Tuesday = 1.5 × 13.78 = $20.67
Thursday = 2.0 × 13.78 = $27.56
Friday = 1.0 × 13.78 = $13.78
Total overtime earning = 20.67 + 27.56 + 13.78
=$62.01
(e) The total earning
= hours worked × Total hours worked per week
= 54 × 13.78
=$744.12
suppose the quarterly (90-day) interest rate in the us is 2.5% and it is 4% in canada. if the $/cd spot exchange rate is $0.80/cd and the 90-day forward exchange rate between us and canadian dollars is $0.79/cd , does the interest rate parity (irp) hold? why or why not? if it does not hold, what is the direction of the capital flow?
Answer:
interest rate parity
(0.8/1) * (1.4*3/12)/(1.25*3/12) = 0.8
Hence It is proved that interest rate parity does not hold because the vale of forward contract is $0.79/CD.
Which of the following is a positive economic statement? A. Foreign citizens should not be allowed to work without a work visa. B. Due to a decrease in state funding, university tuition has risen. C. People should use public transportation more often. D. The government should ban diesel engines in automobiles.
Answer:
B. Due to a decrease in state funding, university tuition has risen
Explanation:
Positive economic statement - it is referred to as the statement that can be tested, validated on the basis of available evidence. A positive statement is used to explain different economic phenomena. The positive economic statement is totally based on fact while the normative statement is based on the value of judgment.
In the given question the correction option is B. This option describes the economic phenomena.
Producer surplus is the difference between a. the market price and the minimum price a buyer is willing to pay b. the market price and the minimum price a seller is willing to accept. c. the maximum price a seller is willing to accept and the market price. d. the maximum price a buyer is willing to pay and the market price
Answer:
b. the market price and the minimum price a seller is willing to accept
Explanation:
The formula to find out the producer surplus is shown below:
Producer surplus = Market price - minimum price to sell the goods
It shows a difference between the market price and the minimum price for accepting the price
Let us take an example, the market price is $10 and the minimum price for accepting the price is $5
So, the producer surplus equal to
= $10 - $5
= $5
"Prepare a forecasted statement of cash flows for 2017 using the indirect method. Assume the following:• Operating expenses for 2017 (such as general and administrative) include depreciation and amor-tization expense of $522 million.• The company did not dispose of or write-down any long-term assets during the year.• The company paid dividends of $159 million in 2017."
Answer:
The question is not complete.As it is the practice cash flows statement is usually prepared from income statement and statement of financial position(balance sheet)
Find in the attached excel file the income statement and the balance sheet that complements the question as well as the requirement to prepare a cash flow statement
Explanation:
Note the closing cash and cash equivalents is $206m which equals the cash and cash equivalents on the balance sheet.