The annual interest rate is 11.803%.
Assumptions:
- Interest is compounded annually.
Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 39,000 units next year and Product L is expected to sell 8,000 units. A unit of either product requires 0.81 direct labor-hours.
The company's total manufacturing overhead for the year is expected to be $1,800,000
Required:
1-a.
The company currently applies manufacturing overhead to products using direct labor-hours as the allocation base. If this method is followed, how much overhead cost per unit would be applied to each product? (Do not round intermediate calculations.Round your answers to 2 decimal places.)
Answer:
Each product will be allocated with 38.30 dollars of manufacturing overhead as both takes 0.81 DLH
Explanation:
[tex]\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate[/tex]
To calcualte the overhead rate we need to distribute the expected cost over the expected cost driver, in this case, labor hours:
(39,000 + 8,000) x 0.81 DLH = 38,070 labor hous
$1,800,000 overhead / 38,070 DLH = 47,281323877
the overhead per hour is $47.28
overhead per product:
47,281323877 x 0.81 = 38,29787234 = 38.30
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
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.
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.
At an activity level of 8,400 machine-hours in a month, Curt Corporation's total variable production engineering cost is $732,480 and its total fixed production engineering cost is $180,400. What would be the total production engineering cost per machine-hour, both fixed and variable, at an activity level of 8,800 machine-hours in a month?
Answer:
The total production engineering cost per machine-hour, at an activity level of 8,800 machine-hours in a month: $107.7
Explanation:
At an activity level of 8,400 machine-hours in a month, Curt Corporation's total variable production engineering cost is $732,480.
Variable production engineering cost per unit = $732,480/8,400 = $87.2
At an activity level of 8,800 machine-hours in a month, total fixed production engineering cost is $180,400 - not changing.
Total variable production engineering cost = $87.2 x 8,800 = $767,360
Total production engineering cost = Total variable production engineering cost + total fixed production engineering cost = $767,360 + $180,400 = $947,760
Total variable production engineering cost per machine-hour = $947,760/8,800 = $107.7
Subject matter experts often perform specific project activities when necessary. Which of the following statements regarding subject matter experts is accuratea. The number of subject matter experts is generally limited to fewer than the number of core team members.
b. Subject matter experts are brought in for meetings and for performing specific project activities when necessary.
c. The subject matter experts are typically assigned to the project from start to finish.
d. The subject matter experts may not relate strongly to a project due to the temporary nature of their
Answer:
The correct answer is letter "D": The subject matter experts may not relate strongly to a project due to the temporary nature of their involvement.
Explanation:
Subject matter experts are professionals whose expertise in certain fields is wide. They are usually called for assessments or training when part of a project must have the consultancy of somebody who has already been successful in that matter. Though, the subject matter expert is not part of the project itself. These professionals work as third party advisers whose work is requested only when needed.
Final answer:
Subject matter experts are typically involved in specific portions of a project to provide targeted expertise. They're not usually part of the core team for the entire project duration and are chosen based on the relevance of their knowledge.
Explanation:
Subject matter experts (SMEs) are typically brought in to lend their expertise to certain aspects of a project rather than being involved from start to finish. The most accurate statement is that subject matter experts are brought in for meetings and for performing specific project activities when necessary. These experts have deep knowledge in particular areas, which allows them to provide valuable insights and solutions, often having an initial sense of the answer even before a detailed analysis is conducted. Their involvement can be temporary and project-specific, and while they may not always connect strongly to the overall project, their contributions in their domain are vital. It's important to select the right person for the task at hand, someone whose knowledge aligns closely with the project's needs.
A transnational strategy calls for less tailoring to individual countries than is typically found in global firms, but generally more tailoring than in multidomestic firms. True False
Answer:
False
Explanation:
The transnational strategy is referred to as the personalized approach that is based on the target customer. In this approach, good and service are sold for the potential customer only or it is defined for selected target or customer.
The transnational strategy sets an action to have a function in a foreign market while maintaining the coordination from one central location.
Which statement concerning cash is true? a.Cash is increased by debiting. b.Cash will always have more debits than credits. c.Cash will never have a credit balance. d.All of these choices are correct.
Answer:
The answer is A. Cash is increased by debiting
Explanation:
Like all assets, to debit means to increase while to credit means to decrease.
There is no rule that states cash must always have more credits than debit or more debits than credits. Cash account can have more credits than debited and the balance will still be positive and vice-versa.
Cash account can have a credit balance. If this happens that means the business is owing or in debt.
The correct statement concerning cash is that it is increased by debiting. The balance of the cash account, whether it is a debit or credit balance, depends on the specifics of the transactions.
Explanation:Out of the options provided concerning cash, the accurate statement is: Cash is increased by debiting.
In the double-entry bookkeeping system, a debit entry increases an asset account, and cash is considered an asset. Thus, to increase your cash account, you would debit it.
However, the statements 'Cash will always have more debits than credits' and 'Cash will never have a credit balance' are not universally true. The balance of the cash account depends on the transactions. If there are more debits (increases) to the account than credits (decreases), then it will have a debit balance. If there are more credits than debits, it could potentially have a credit balance.
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Assignment 3.1 – Supply and Demand g Define market. How will geography affect the market? Assume that you sell in the market for Blu-ray players. What is the most important thing in this market?
Explanation:
Market can be defined as a physical, or virtual location, where economic agents (sellers and buyers) meet to negotiate the exchange of goods and services for other goods and services or for a monetary unit.
A market economy is one that is impacted by the interaction between sellers and buyers to allocate resources.
Geography can affect the economic market due to the impact that the location and organization of activities has on the availability of resources, on climatic conditions, on transportation costs, on the political and social conditions of a given location and on several factors that directly influence the progress of activities economical.
It is important that a company or economic institution chooses the location where it will implement its activities according to its strategic planning, in the case of a Blu-ray company it is important that the company segment the market to find its target audience and invest in technology and innovation to always offer the public an innovative product compatible with the market.
Calculate the present value of $4,000 received five years from today if your investments pay (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Present Value a. 6 percent compounded annually $ b. 8 percent compounded annually c. 10 percent compounded annually d. 10 percent compounded semiannually e. 10 percent compounded quarterly
Answer:
A = $2,989.30
B = $2,722.33
C = $2,483.68
D = $2,455.65
E = $2,441.08
Explanation:
Given:
Future value (A) = $4,000
Present value (P) = ?
Number of Year (N) = 5.
A. R = 6% = 0.06
[tex]P=\frac{A}{(1+R/100)^N}\\P=\frac{4000}{(1+0.06)^5}\\P=\frac{4000}{(1.06)^5}\\\\P=\frac{4000}{(1.06)^5}\\P=\frac{4000}{1.33822558}\\\\P=2,989.032[/tex]
B. R = 8% = 0.08
[tex]P=\frac{A}{(1+R/100)^N}\\P=\frac{4000}{(1+0.08)^5}\\P=\frac{4000}{(1.08)^5}\\\\P=\frac{4000}{1.46932808}\\\\P=2,722.3327[/tex]
C. R = 10% = 0.1
[tex]P=\frac{A}{(1+R/100)^N}\\P=\frac{4000}{(1+0.1)^5}\\P=\frac{4000}{(1.1)^5}\\\\P=\frac{4000}{1.61051}\\\\P=2,483.6852[/tex]
D. R= 10/2 = 5% N=5*2 = 10
[tex]P=\frac{A}{(1+R/100)^N}\\P=\frac{4000}{(1+0.05)^{10}}\\P=\frac{4000}{(1.05)^{10}}\\\\P=\frac{4000}{1.62889463}\\\\P=2,455.6530[/tex]
E. R = 10/4 = 2.5% N = 5*4 = 20
[tex]P=\frac{A}{(1+R/100)^N}\\P=\frac{4000}{(1+0.025)^{20}}\\P=\frac{4000}{(1.025)^{20}}\\\\P=\frac{4000}{1.63861644}\\\\P=2,441.08377[/tex]
The present value of $4,000 received five years from now varies depending on the interest rate and the frequency of compounding. If the rate is 6% compounded annually, it's $2,988.64; if it's 8% compounded annually, it's $2,722.54; at 10% compounded annually, it's $2,488.32; at 10% compounded semiannually, it's $2,454.60; and at 10% compounded quarterly, it's $2,434.08.
Explanation:To calculate the present value of $4,000 received five years from today under different compounding scenarios, we can use the formula for present value: PV = FV / (1 + r/n)^(nt), where FV is future value, r is interest rate, n is number of compounding periods per year, and t is number of years.
For a 6% interest rate compounded annually, n = 1 (since it's annually), r = 6/100 = 0.06 (converted to a decimal), t = 5 years and FV = $4,000. So, PV = $4,000 / (1 + 0.06/1)^(1*5) = $2,988.64.For an 8% interest rate compounded annually, PV = $4,000 / (1 + 0.08/1)^(1*5) = $2,722.54.For a 10% interest rate compounded annually, PV = $4,000 / (1 + 0.10/1)^(1*5) = $2,488.32. For a 10% interest rate compounded semiannually, n = 2 (since it's semiannually), r = 10/100 = 0.10, t = 5 and FV=$4,000. So, PV = $4,000 / (1 + 0.10/2)^(2*5) = $2,454.60.For a 10% interest rate compounded quarterly, n = 4 (since it's quarterly), r =10/100 = 0.10, t = 5 and FV=$4,000. So, PV = $4,000 / (1 + 0.10/4)^(4*5) = $2,434.08.Learn more about Present Value here:https://brainly.com/question/34554678
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Accounting Professionals Inc. experienced the following events in 2014, its first year of operation:1. Performed services for $20,000 cash.2. Purchased $4,000 of supplies on account.3. A physical count on December 31, 2014, found that there was $1,000 of supplies on hand.RequiredBased on this information alonea.Record the events under an accounting equation. (Enter any decreases to account balances with aminus sign.
Answer:
Explanation:
The accounting equation is presented below:
Particulars Assets = Liabilities = Stockholders equity
Cash Supplies Account payable Retained earnings
1. Service
Performed $20,000 $20,000
2. Supplies
Purchased $4,000 $4,000
3. Supplies
Used -$3,000 -$3,000
Total $20,000 $1,000 $4,000 $17,000
You purchased shares of Broussard Company using 50 percent margin; you invested a total of $20,000 (buying 1,000 shares at a price of $20 per share) by using $10,000 of your own funds and borrowing $10,000. Determine your percentage profit or loss if the stock price rises to $23 a share
Answer:
My percentage profit is 15%
Explanation:
Total investment = $20 × 1000 = $20,000
Rise in value of investment = $23 × 1000 = $23,000
Profit = $23,000 - $20,000 = $3,000
Percentage profit = profit/total investment × 100 = $3,000/$20,000 × 100 = 15%
Two mutually exclusive alternatives are being considered for the environmental protection equipment at a petroleum refinery. One of these alternatives must be selected. a. Which environmental protection equipment alternative should be selected? The firm's MARR is 2020% per year. Assume the equipment will be needed indefinitely. Assume repeatability is appropriate for this comparison. b. Assume the study period is shortened to five years. The market value of Alternative B after five years is estimated to be $17 comma 00017,000. Which alternative would you recommend? Assume repeatability is appropriate for this comparison.
The question is incomplete because the two mutually exclusive alternatives details were not given in the question.
However, kindly find the complete question below with all the details.:
Question:
Two mutually exclusive alternatives are being considered for the environmental protection equipment at a petroleum refinery. one of these alternatives must be selected. the estimated cash flows for each alternative are as follows:
ALTERNATIVE A:
capital investment= $20,000
annual expenses= $5,500
market value at end of useful life= $1,000
useful life= 5 years
ALTERNATIVE B:
capital investment= $38,000
annual expenses= $4,000
market value at end of useful life= $4,200
useful life= 10 years
a) Which environmental protection equipment alternative should be selected? the firms MARR is 20% per year. assume the equipment will be needed indefinitely
b) Assume the study period is shortened to five years. the market value of alternative B after five years is estimated to be $15,000. which alternative would you recommend
Answer / Explanation:
First, we need to identify the budget line:
The budget line shows the various combination of goods that can be brought by the consumer with the given income. The slope of the budget line is the ratio of two goods prices. It has a negative slope.
Now, to calculate for the present value, we have,
(a) Alternative A = -20,000 - 5500/( 1 + 0.20 ) ² - 5500/( 1 + 0.20 ) ³ -5500/( 1 + 0.20 ) ⁴ - 5500/( 1 + 0.20 ) ⁵ + 1000/( 1 + 0.20 ) ⁵
= − 36046.49
Alternative B = -38,000 - 4000/ ( 1 + 0.20 ) - 4000/ ( 1 + 0.20 )² - 4000/ ( 1 + 0.20 )³ - 4000/ ( 1 + 0.20 )⁴ - 4000/ ( 1 + 0.20 )⁵ - 4000/ ( 1 + 0.20 )⁶ - 4000/ ( 1 + 0.20 )⁷ - 4000/ ( 1 + 0.20 )⁸ - 4000/ ( 1 + 0.20 )⁹
= − 54091.56
Going forward to calculate the annual worth, we have,
Alternative A = NPV / PVIFA ( 20%, 5 years)
− 36046.49 / 2.9906
= − $ 12053.26
Alternative B = NPV / PVIFA ( 20%, 5 years)
− 54091.56 / 4.1925
= − $ 12901.98
It should be noted that Alternative A should be chosen as it has lower annual cost.
(b) Present Value:
Alternative B = -38000 - 4000/ ( 1 + 0.20 ) - 4000/ ( 1 + 0.20 )² - 4000/ ( 1 + 0.20 )³ - 4000/ ( 1 + 0.20 )⁴ - 15000/ ( 1 + 0.20 )⁵
= - 43934.28
Annual Worth for Alternative B therefore is
= -43934.28 / 29906
= − $ 14690.79
It should be noted that Alternative A should be chosen as it has lower annual cost.
Final answer:
To decide which environmental protection equipment alternative to select for a refinery, one must analyze the trade-offs displayed on a production possibility frontier and calculate the options' present worth, future worth, or annual worth, considering the MARR and any residual value of the alternatives.
Explanation:
When deciding which environmental protection equipment alternative should be selected at a petroleum refinery, one has to consider the trade-offs between economic output and environmental protection as depicted by a production possibility frontier (PPF). The PPF shows different combinations of economic output and environmental quality a company can achieve. An alternative like P represents more economic output with less environmental protection, while T represents more environmental protection at the expense of economic output. For a decision needed indefinitely and assuming repeatability, economists usually prefer options that are on the PPF, which represents efficient choices. For a study period shortened to five years, with Alternative B having a market value of $17,000 after five years, one would need to calculate the present worth, future worth, or annual worth for each alternative to compare them accurately. When considering market values and MARR (Minimum Attractive Rate of Return), the decision should be the one that maximizes the net benefits over the five-year period while accounting for any residual value.
Cardinal Corp, a calendar year taxpayer, receives dividend income of $250,000 from a corporation in which it holds a 10% interest. Cardinal also receives interest income of $35,000 from municipal bonds. (the municipality used the proceeds from the bond issue to construct a library.) Cardinal borrowed funds to purchase the municipal bonds and pays $20,000 of interest on the loan. Excluding these three items, Cardinals taxable income is $500,000. Cardinal has $150,000 of accumulated E & P at the end of the prior year, and it paid Federal income taxes of $200,000 during the year.
a. What Is Cardinal Corporation’s taxable income after these three items are taken into account? 500,000
b. What is Cardinal Corporations accumulated E & P at the start of the next year?
Answer:
The correct answer for (A) is $575,000 and for (B) is $715,000.
Explanation:
According to the scenario, given data is :
Cardinals income ( excluding dividends) = $500,000
Dividend received = $250,000
E & P beginning balance = $150,000
interest income from municipal bonds = $35,000
interest paid = $20,000
Federal taxes paid = $200,000
So,
(A) Taxable income = Income + Dividend received
where, Assume cardinal Corp. entitled for 70% DRD than,
Dividends received = $250,000 - $175,000 = $75,000
Hence, Taxable income = $500,000 + $75,000
= $575,000
(B) E & P balance = ( E&P beginning balance +Taxable income + DRD + Interest Income ) - ( Interest paid + Federal taxes paid )
= ( $150,000 + $575,000 + $175,000 + $35,000) - ( $20,000 + $200,000)
= $715,000
After accounting for the three items, Cardinal Corporation's taxable income is $730,000. The accumulated E & P at the start of the next year is $680,000.
The question asks about the taxable income and accumulated E & P of the Cardinal Corporation after considering the impact of dividend income, interest income, and interest expense.
We can calculate Cardinal's taxable income by adding the $500,000 base taxable income to the $250,000 dividend income, but we have to exclude the $35,000 municipal bond interest (since it's tax-exempt). We also need to subtract the $20,000 interest expense. This will give us $500,000 + $250,000 - $20,000 = $730,000 as the taxable income after these items are taken into account.
Regarding accumulated E&P, it will be equal to the amount at the end of the previous year, plus the current year's net income, minus any dividends paid. Since there’s no information about dividends, we’ll assume there were none. Therefore, the beginning E&P ($150,000), plus this year's net income (after the federal tax), which is $730,000 - $200,000 = $530,000. Thus, Cardinal Corporations accumulated E & P at the start of the next year is $150,000 + $530,000 = $680,000.
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If a 1% change in the price of a good causes a 1% change in the quantity demanded, the good has an elasticity of demand: a. equal to 1. b. less than 1. c. equal to 0. d. greater than 1.
Answer:
a. equal to 1.
Explanation:
Elasticity of demand measures the responsiveness of quantity demanded to changes in price.
Elasticity of demand = percentage change in quantity demanded / percentage change in price.
1% / 1 % = 1
Demand is unit elastic.
I hope my answer helps you
Starbucks reports net income for 2015 of $2,757.4 million. Its stockholders' equity is $5,272 million and $5,818 million for 2014 and 2015, respectivelya. Compute its return on equity for 2015
b. Starbucks, repurchased over $1.4 billion of its common stock in 2015. How did this repurchase affect Starbucks' ROE?
Answer:
Explanation:
a.)
ROE in full is return on equity. It is used to determine return that investors receive from providing capital in form of shares to a company. In this case, it is calculated by dividing Starbucks' 2015 net income by the total shareholders equity.
ROE = Net income / total equity
ROE = $2,757.4 million / $5,818 million
ROE = 0.4739 or 47.39% as a percentage
Return on equity is therefore 47.4%
b.)
When a company repurchases shares, it means that it is buying back the shares from the shareholders. This can happen when the financial managers think that the company shares are undervalued. The net effect of a buy-back is a reduction in the number of shares outstanding hence in the above formula for ROE, when the denominator (total equity) value is small, the ROE will increase.
On March 1, ABX Company’s assets are $104,000 and its liabilities are $34,000. On March 5, ABX is fined $17,000 for failing emission standards. ABX immediately pays the fine in cash. After the fine is paid, what is the amount of equity for ABX? (Negative amounts should be indicated by a minus sign.)
Answer:
$53,000
Explanation:
The accounting equation gives the relationship between the 3 elements of the balance sheet namely; assets, liabilities and equity as shown below.
Assets = Liabilities + Equity
Given that On March 1, ABX Company’s assets are $104,000 and its liabilities are $34,000 then on that day
Equity = $104,000 - $34,000
= $70,000
If On March 5, ABX is fined $17,000 for failing emission standards. ABX immediately pays the fine in cash.
This will result in a debit to fines and penalties (p/l) and a credit to cash. Thus, assets and equities reduce by $17,000
After the fine is paid, the amount of equity for ABX
= $70,000 - $17,000
= $53,000
The correct statement is that the equity for ABX after the payment of the fine will be $53,000. This is able to be calculated by using the formula for calculation balance sheet tallying method.
The balance sheet of a business consists of assets and equities and liabilities. The amount of assets at the end of the accounting year is equal to the amount of equities and liabilities.
Calculation of equities in the balance sheetThe formula for the calculation of tallying the balance sheet at the end of an accounting period can be done as, [tex]\rm Assets= Equities+ Liabilities\\ \\ Equities= Assets- Liabilities[/tex]Using the given information, we know that on March 1st assets are $104,000 and the liabilities are $34,000, so the equities will be,[tex]\rm Equities= 104000-34000\\ \\ \rm Equities=\$70000[/tex]However, the equities of ABX as on March 5th after payments of fine will be as the cash balance of the asset side reduces, so, total assets will be $87,000.Now the equities as on March 5th will be, [tex]\rm Equities= \$87000-34000\\ \\ \rm Equities= \$53000[/tex]Hence, the equities of ABX as on March 5th will be $53,000.
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The price tag on a tennis ball in 1975 read $0.10, and the price tag on a tennis ball in 2005 read $1.00. The CPI in 1975 was 52.3, and the CPI in 2005 was 191.3. Refer to Scenario 24-1. In 1975 dollars, a 1975 tennis ball cost $0.10 and a 2005 tennis ball cost a. $0.27, so tennis balls were cheaper in 1975. b. $0.27, so tennis balls were cheaper in 2005. c. $3.66, so tennis balls were cheaper in 1975. d. $3.66, so tennis balls were cheaper in 2005
In 1975 dollars, a 1975 tennis ball cost $0.027, so tennis balls were cheaper in 1975.
Explanation:To find the cost of a 1975 tennis ball in 1975 dollars, we need to adjust the price using the Consumer Price Index (CPI). The formula to adjust for inflation is:
Inflation-adjusted price = (Nominal price) x (CPI in year 1) / (CPI in year 2)
Using this formula, the inflation-adjusted price of a 1975 tennis ball in 1975 dollars is:
Inflation-adjusted price = $0.10 x 52.3 / 191.3
Inflation-adjusted price = $0.027
Therefore, in 1975 dollars, a 1975 tennis ball would cost $0.027, which is closer to option a. $0.27. Therefore, tennis balls were cheaper in 1975.
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The correct option is B. Using the Consumer Price Index (CPI), a 2005 tennis ball costing $1.00 would be equivalent to $0.27 in 1975 dollars. Therefore, tennis balls were cheaper in 2005 in terms of 1975 dollars.
To determine the cost of a 2005 tennis ball in 1975 dollars, we need to adjust for inflation using the Consumer Price Index (CPI). The CPI in 1975 was 52.3, and in 2005 it was 191.3. We use the formula:
Adjusted Price = Nominal Price × (CPI in starting year / CPI in ending year)
For a 2005 tennis ball costing $1.00 with a CPI of 191.3:
Adjusted Price = $1.00 × (52.3 / 191.3) ≈ $0.27
So, in 1975 dollars, a 2005 tennis ball cost approximately $0.27, meaning the correct option is b.
DuPont analysis is conducted using the DuPont equation, which helps you analyze three important factors that drive a company's ROE. According to the equation, which of the following factors affect a company's ROE directly? Check all that apply.
a. perational efficiency
b. Market-to-book-value ratio
c. Efficiency in use of total assets
Answer: a. Operational efficiency
c. Efficiency in use of total assets
Explanation:ROE(RETURNS ON EQUITY) This is a term used in financial analysis,it is the percentage representation of the value of a company's NET INCOME DIVIDED BY THE VALUE OF THE SHAREHOLDERS SHARES. Both the balance sheet and the income statement is used when calculating ROE.
OPERATIONAL EFFICIENCY tries to Describe how well the management of the entire Operations is carried out. It is a major determining factor in ROE.
EFFICIENCY IN USE OF TOTAL ASSETS this is a term used to determine how well a company is effectively using it's assets. This assets can be in the form of Financial, Machines,raw materials etc.
Since ROE involves NET INCOME, efficiency in use of total assets is a major determining factor in ROE.
DuPont analysis evaluates operational efficiency and efficiency in total assets' use as essential factors for a company's Return on Equity (ROE). In contrast, the market-to-book-value ratio doesn't directly affect the ROE.
Explanation:The DuPont analysis is a performance measurement method that helps evaluate the factors driving a company's return on equity (ROE). According to the DuPont equation, a company's ROE is directly affected by three factors: the company's operational efficiency, its efficiency in the use of total assets, and financial leverage. The market-to-book-value ratio, however, is not part of the DuPont analysis and thus does not directly influence a company's ROE.
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A job specification is: a. a group of related activities and duties. b. a statement of the knowledge, skills, and abilities required of a person to perform a job. c. a statement of the tasks, duties, and responsibilities of a job to be performed. d. a set of different duties and responsibilities performed by one employee.
Answer:
a statement of the knowledge, skills, and abilities required of a person to perform a job.
Explanation:
A job specification is a written statement that describes btge educational qualifications, experience, technical skills, and communication skills required to perform a job. Also responsibilities that are required on a job are stated.
A job specification is different from a job description which is a set of different duties and responsibilities performed by one employee.
You just started your first job today. Besides your 401K, you are planning to save $3,000 a year for 40 years for your retirement when you receive tax returns. If the first deposit is made a year from now into an account with the annual interest rate of 8%, how much will you have in your account in 40 years? Round to the nearest cent. Do not include any unit (If your answer is $111.11, then type 111.11 without $ sign.)
Answer:
The correct answer is 777.169.56.
Explanation:
According to the scenario, the given data are as follows:
Payment per year (PMT) = $3,000
Time (N) = 40 years
Rate of interest (R)= 8%
So, the future value of the following can be calculated by using the following formula:
Future value = PMT × [tex]\frac{((1+r)^{n} -1)}{R}[/tex]
Now, put the value of the following in the formula. then,
= 3,000 × [tex]\frac{((1+8/100)^{40} -1)}{8/100}[/tex]
= 3,000 × 259.0565
= 777,169.56
Hence, the value in the account after 40 years will be 777,169.56.
Final answer:
By saving $3,000 annually for 40 years in an account with an 8% interest rate, you will accumulate approximately = 777,169.56 , calculated using the future value of an annuity formula.
Explanation:
To calculate the future value of saving $3,000 a year for 40 years in an account with an annual interest rate of 8%, we use the future value of an annuity formula. This formula is given by FV = P *[((1 + r)ⁿ - 1) / r], where P is the annual payment, r is the annual interest rate (as a decimal), and n is the number of payments.
In this case, P = $3,000, r = 0.08 (8% expressed as a decimal), and n = 40. Plugging these values into the formula gives FV = 3000 * [((1 + 0.08)⁴⁰ - 1) / 0.08],
3,000 × 259.0565 which calculates to a future value of approximately = 777,169.56
Thus, after 40 years of saving $3,000 annually at an 8% interest rate, you will have= 777,169.56 in your account.
Formulating a Statement of Stockholders' Equity from Raw Data Gap, Inc., reports the following selected information at January 30, 2010 ($ millions).Contributed capital, Jan. 30, 2010 $2,990Treasury stock, Jan. 30, 2010 (9,069)Retained earnings, Jan. 30, 2010 10,815Accumulated other comprehensive income, Jan. 30, 2010 155During fiscal year 2011, Gap reported the following:1. Sale of stock $42. Purchase of stock 1,7973. Net income 1,2044. Cash dividends 2525. Other comprehensive income 30Use this information to prepare the statement of stockholders' equity for Gap, Inc., for year ended January 29, 2011.
To prepare the statement of stockholders' equity for Gap, Inc., for the year ended January 29, 2011, calculate the ending balances of contributed capital, treasury stock, retained earnings, and accumulated other comprehensive income by considering the changes in each component during fiscal year 2011.
Explanation:To prepare the statement of stockholders' equity for Gap, Inc., for the year ended January 29, 2011, we need to consider the changes in the different components of stockholders' equity. The statement should include information about contributed capital, treasury stock, retained earnings, and accumulated other comprehensive income.
Based on the provided data, we can calculate the ending balance for each component by considering the changes during the fiscal year 2011. Here is the statement of stockholders' equity for Gap, Inc.:
Contributed capital: January 30, 2010 balance ($2,990 million) + Sale of stock ($42 million) - Purchase of stock ($1,797 million) = Ending balanceTreasury stock: January 30, 2010 balance ($9,069 million) - Purchase of stock ($1,797 million) = Ending balanceRetained earnings: January 30, 2010 balance ($10,815 million) + Net income ($1,204 million) - Cash dividends ($252 million) = Ending balanceAccumulated other comprehensive income: January 30, 2010 balance ($155 million) + Other comprehensive income ($30 million) = Ending balanceThe statement of stockholders' equity should present these ending balances for each component, indicating the total equity at the end of the fiscal year 2011.
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Bob: Listen, donuts are made to bring joy into our lives and to wake up our glated faculties. Just let them be distributed according to unchanging moral principles of justice. The donuts will distribute themselves according to natural principles. We just take what we want and the leftovers will be appreciated by those who enjoy them most. Don't over complicate this. Where's the chocolate milk? A) Natural law school of thought. B) Historical perspective school of thought C) Irrational forces perspective. D) Critical legal studies school of thought
Answer:
Option D
Explanation:
This type of school of thought is usually inter twinned with social issues which makes the law have social biased because it is always supporting the interest of those who create it.
Final answer:
Bob's statement aligns with the Natural law school of thought (A), where goods and services, like donuts, are believed to distribute themselves according to inherent moral principles without the need for governmental interference, reflecting Natural Law Theory.
Explanation:
Bob's statement reflects the Natural law school of thought (A), which posits that justice is a part of natural order and goods will equitably distribute themselves according to natural principles. His view suggests that distributive justice should occur with minimal governance, aligning with Natural Law Theory. Natural Law Theory emphasizes that moral principles are inherent in the behaviors corresponding with human nature and reasoning.
Principles of distributive justice play a critical role in shaping ideologies concerning what basic needs are, how resources should be allocated, and the level of governmental interference in these processes. The natural law perspective holds that there should be as little governmental interference as possible in the distribution of goods, relying on the principle of individuals acting in accordance with inherent moralities. Moreover, the idea of self-regulation without any external imposition aligns with this philosophical stance.
Bob's casual mention of donuts distributing themselves according to who enjoys them most invokes the intuition that all things, including resources and goods, should find their place in society naturally. This reflects the broad principle of Natural Law Theory, where the distribution of goods is seen as a reflection of natural justice, rather than a system built on social or governmental constructs.
If entrepreneurs realize that all the traditional applications for their products have disappeared and that they have surplus products, which of the following elements of the SCAMPER tool are they most likely to employ?
A.Eliminate
B. Sectionalize
C.Restitute
D. Put to other uses
Answer:
The correct answer is D
Explanation:
SCAMPER tool is the technique which is an Idea Manipulation technique, that guide the business in generating diverse ideas. Instead of thinking the original ideas, this technique provokes the business to gather ideas from the divergent fields, fuse and manipulate as per the requirements.
So, in this case, the entrepreneur got to know that all the applications of the product have disappeared and the entrepreneur have the surplus products with them, so the element of the tool which they could employ is that they could put to other uses the surplus products.
In the case of surplus products and vanished conventional applications, entrepreneurs are most likely to 'Put to other uses' from the SCAMPER model. This encourages finding new uses for a product.
Explanation:If entrepreneurs find that all the traditional applications for their products have disappeared and they are left with surplus products, the element of the SCAMPER tool they are most likely to employ is 'Put to other uses'. The 'Put to other uses' option encourages exploring non-traditional uses for a product, which can help the entrepreneurs to use up their surplus. For instance, baking soda, originally used for baking, found its way into a variety of uses, such as cleaning, neutralizing odors, and health applications.
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Taxpayer Info: Star Corp. is a calendar-year, accrual-method C corporation that sells inventory.
During 2018, Star Corp had gross sales of $300,000,000 and returns of $10,000,000. At the beginning of the year, Star Corp. had $20,000,000 worth of inventory. During the year, Star Corp. purchased $105,000,000 worth of inventory. Star Corp. had end of year inventory worth $25,000,000. What is Star Corp.'s cost of goods sold?
Answer:
Cost of Goods Sold = $100,000,000
Explanation:
given data
gross sales of $300,000,000
returns = $10,000,000
beginning worth of inventory = $20,000,000
During year worth of inventory = $105,000,000
end year worth of inventory = $25,000,000
solution
we get here Cost of Goods Sold that is express as
Cost of Goods Sold = Cost of Goods purchased + Beginning Finished Goods Inventory - Ending Finished Goods Inventory .......................1
put here value we get
Cost of Goods Sold = $105,000,000 + $20,000,000 - $25,000,000
Cost of Goods Sold = $100,000,000
Star Corp.'s cost of goods sold (COGS) for the year 2018 can be calculated using the formula: Beginning Inventory + Purchases - End Inventory. The COGS for Star Corp. is $100,000,000.
Explanation:The cost of goods sold (COGS) for Star Corp. can be calculated using the formula: Beginning Inventory + Purchases - End Inventory. Given that Star Corp. had a beginning inventory of $20,000,000 and purchased $105,000,000 worth of inventory during the year, and had an ending inventory of $25,000,000, we can calculate the COGS as follows:
COGS = $20,000,000 + $105,000,000 - $25,000,000 = $100,000,000.
Therefore, Star Corp.'s cost of goods sold for the year 2018 was $100,000,000.
g Which of the following situations is likely to generate noncooperative behavior in repeated games?8)A)The payoffs can change rapidly from one game period to the next.B)The game is repeated a finite number of times.C)There are many players in the game.D)All of these situations can generate noncooperative behavior.
I'm just going off of the information you have given, I would think it would be all of the above because too much of anything is mentally draining and ends up becoming menotanus.
The situations that can lead to noncooperative behavior in repeated games include: rapidly changing payoffs, finite repetitions of the game, and a large number of players.
Noncooperative Behavior in Repeated Games
In repeated games, players engage in strategic interactions multiple times, which can lead to differing levels of cooperation based on various factors. Situations that are likely to generate noncooperative behavior include: when payoffs can change rapidly from one period to the next, when the game has a finite number of repetitions, and when there are many players. Rapid changes in payoffs can make it difficult for players to predict and trust each other, thus undermining cooperation. A finite repetition of games enables a 'last period' problem, where players have no incentive to maintain cooperation in the final round, leading to a potential unraveling of cooperation backward from the last period. Lastly, with many players, the likelihood of *defection* going unpunished and untracked is higher, making noncooperative strategies more prevalent.
Noncooperative strategies are a stable choice because they prevent exploitation by another player who may choose not to cooperate. Under circumstances that make future interactions uncertain or less valuable, players have less incentive to cooperate in the present, as there is less to be gained from building a reputation for cooperation.
Mary is filing Head of Household with a taxable income of $79,280. What is her income tax for Marks: 1 2018? a. $11,989 b. $13,380 c. $9,320d. $11,978
Answer:
Option (a) $11,989
Explanation:
Data provided in the question:
Taxable income = $79,280
Now,
we should know,
Tax rate Taxable income Tax owed
10% $0 to $13,600 10% of taxable income
12% $13,601 to $51,800 $1,360 plus 12% of the amount over $13,600
22% $51,801 to $82,500 $5,944 plus 22% of the amount over 51,800
Since,
Income of $79,280 lies in the taxable income bracket of $51,801 to $82,500
Therefore,
Income tax for Marks = $5,944 + 22% of ($79,280 - $51,800 )
= $5,944 + ( 0.22 × 27480 )
= $5,944 + $6,045.6
= $11,989.6 ≈ $11,989
Hence,
Option (a) $11,989
Which is a crucial question about markets in a macro sense? Select one: a. Is the market large enough today to support a variety of competitors? b. What is the predicted short- and long-term growth rate? c. How many customers are in my specific niche or segment? d. Both A and B
Answer:
b. What is the predicted short- and long-term growth rate?
Explanation:
Market is a place where sellers interact with buyers to sell goods and services.
In the micro sense, markete exist to maximise profit by considering dynamics of price which is determined by demand and supply.
But in the long run the rate of short term and long term growth is the primary concern. This will help sellers plan for long term production volumes of goods based on projections. And will reduce waste that will occur in a slow growth market.
Consider the recorded transactions below.
Debit Credit
1. Accounts Receivable 8,500
Service Revenue 8,500
2. Supplies 1,750
Accounts Payable 1,750
3. Cash 9,100
Accounts Receivable 9,100
4. Advertising Expense 1,100
Cash 1,100
5. Accounts Payable 2,600
Cash 2,600
6. Cash 1,200
Deferred Revenue 1,200
Post each transaction to T-accounts and compute the ending balance of each account. The beginning balance of each account before the transactions is: Cash, $2,100; Accounts Receivable, $2,900; Supplies, $270; Accounts Payable, $2,200; Deferred Revenue, $170. Service Revenue and Advertising Expense each have a beginning balance of zero.
Final answer:
A T-account is a visual representation of a balance sheet. For a bank, assets are placed on the left side, and liabilities and net worth are placed on the right side. The net worth of the bank is the total assets minus total liabilities.
Explanation:
A T-account is a visual representation of a balance sheet that helps track the changes in specific accounts related to a transaction. For a bank, assets are placed on the left side of the T-account, and liabilities and net worth are placed on the right side. The bank's assets include reserves, government bonds, and loans, while its liabilities include deposits made by customers. The net worth of the bank is calculated by subtracting total liabilities from total assets. In this case, the bank's T-account balance sheet would show:
Bank's Assets
Reserves: $50Government Bonds: $70Loans: $500Bank's Liabilities
Deposits: $400Bank's Net Worth
Net Worth: $220You win a scratch off lottery ticket that promises to pay an initial payment of 10,000 next year and grow at a rate of 2% forever. If the discount rate is 5%, what is the present value of the lottery ticket?
Answer:
[tex]PW=\frac{10,000}{0.05-0.02}\\ PW=\$333,333.333[/tex]
Present value of lottery= $333,333.333
Explanation:
Given Data:
Initial Payment=$10,000
Rate at which payment grow=2%=0.02
Discount Rate=5%=0.05
Required:
Present value of lottery=?
Solution:
[tex]PW=\frac{Initial\ Payment}{r-g}[/tex]
where:
r is the discount rate
g is the growth rate
[tex]PW=\frac{10,000}{0.05-0.02}\\ PW=\$333,333.333[/tex]
Present value of lottery= $333,333.333
The contribution income statement: A. Reports gross margin B. Is allowed for external reporting to shareholders C. Categorizes costs as either direct or indirect D. Can be used to predict future profits at different levels of activity
Answer:
The answer is D. Can be used to predict future profits at different levels of activity
Explanation:
The contribution income statement is a company’s financial statement that indicates how the revenue is transformed into the net income. Income statements should help investors and creditors determine the past financial performance of the enterprise, predict future performance, and assess the capability of the business to generate future revenue streams through the reporting of income and expenses.
Concord Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,932,000 on March 1, $1,212,000 on June 1, and $3,081,610 on December 31. Compute Concord’s weighted-average accumulated expenditures for interest capitalization purposes.
Answer:
$2,317,000
Explanation:
The computation of the weighted-average accumulated expenditures for interest capitalization purposes is shown below:
For expenditure on March 1
= $1,932,000 × 10 months ÷ 12 months
= $1,610,000
On June 1
= $1,212,000 × 7 months ÷ 12 months
= $707,000
On December 31, it would be zero
So, the accumulated expenditures is
= $1,610,000 + $707,000
= $2,317,000
Final answer:
The weighted-average accumulated expenditures for interest capitalization purposes for Concord Company is calculated by multiplying each expenditure by the number of months it was outstanding and summing them up. The total comes to $30,885,610.
Explanation:
The student is asking for the computation of Concord Company's weighted-average accumulated expenditures for interest capitalization purposes over the construction period of a building. To calculate this, we will consider the dates and amounts of expenditures made during the construction period.
Calculation of Weighted-Average Accumulated Expenditures:
Determine the amount of time each expenditure was outstanding during the construction period.
Multiply each expenditure by the number of months it was outstanding to calculate the weighted expenditure.
Add the weighted expenditures to determine the total weighted-average accumulated expenditures.
Expenditures were as follows:
$1,932,000 on March 1 (10 months outstanding)
$1,212,000 on June 1 (7 months outstanding)
$3,081,610 on December 31 (1 month outstanding)
The weighted expenditures will be:
$1,932,000 x 10 = $19,320,000
$1,212,000 x 7 = $8,484,000
$3,081,610 x 1 = $3,081,610
The total weighted-average accumulated expenditures for interest capitalization purposes is the sum of the individual weighted expenditures, which equals $19,320,000 + $8,484,000 + $3,081,610 = $30,885,610.