Answer:
33%
Explanation:
By virtue of been having 10% interest in Trumpet Partnership, Jack has a 10% share out of 30 percent owned by Trumpet Partnership (0.10 * 30=3%).
Additionally, his own 30 percent is still pay of his direct and constructive ownership of BJT Corporation, thus making his total direct stand at 33%.
Porter's Five Forces framework has been around since the 1980's and has been very effective in evaluating industry attractiveness. Changes in the dynamic nature of industries has not impacted the usefulness of the tool. The tool has no limitations. Group of answer choices
Answer:
False
Explanation:
Porter's Five Forces framework is a list of factors which provide an explanation to the forces affecting competition in industries. These five forces include;
1. Competition in the industry
2. Potential of new entrants into the industry
3. Power of suppliers
4. Power of customers
5. Threat of substitute products
Over the years, these five forces have been used in explaining the structure of certain industries. The framework however has limitations, some of which include,
1. It is not in terms with current realities, such as new advancements in technology which were not available as at the time the framework was formed.
2. Some companies operate different structures, whereas, the framework classifies each industry under one structure.
3. There is the possibility of industries to give equal consideration to all five factors, whereas in reality only some of the factors might be applicable to them.
4. Individual companies instead of industries now use the framework to make their business analysis which is not the real reason for the development of the framework. It was meant for industries as a whole.
Introduction to the future value of money. Under the concepts of the time value of money, you can determine the future value of an amount invested today that will earn a given interest rate over a given amount of time. This technique can be used to calculate the future value of:
(1) a single receipt or payment made
(2) a series of receipts or payments.
Lexi and Luke are sitting together, with their notebooks and textbooks open, at a coffee shop. They've been reviewing the latest lecture from Dr. Thibodeaux's financial management class by asking each other questions Today's topic addressed the calculation of future values for both simple and compound interest-earning accounts. Complete the missing information in the conversation that follows. Round your final answer to all computations to two decimal places. However, if you compute any interest factors as an intermediate step in your calculations, round them to four decimal places.
Lexi So, why is it important to be able to calculate the future value of some amount invested?
Luke First, remember that the amount invested is usually called _______maturity payment and the amount earned during the investment period is called_________interest.It is important to be able to calculate a future value so that you can know in advance what a given amount of principal will be worth after earning a specified________ interest rate for a known_________
Lexi OK, I understand that, and I know the amount of principal invested today can be called the ________ value of the investment, whereas the amount realized after the passage of t period of time is called its _________ value. But what causes the present and future values to be different values?
Luke Two things cause the present and future values to be different amounts. First, the _________ earned during the investment period causes the future value to be greater than, equal to, or less than the present value. Second, the method used to calculate the interest earned-that is, whether the account pays ______________ interest-determines the________.
Answer:
Principal
interest
interest for a known period
present value
future value
interest
simple or compound interest
the amount by which the future value differs from the present value
Explanation:
The initial amount invested is known as the principal amount.
The increase over and above the principal invested is called interest.
The duration of the investment is the period which the interest is earned.
present value is the present worth of investment
future value is the future amount that the investment would worth after been invested for a known period
Which of the following is an expense of this period? Multiple Choice Costs of items paid for in this period but used up next period Repayment of debt from a loan in a prior period Cost of land purchased and paid for this period Costs of items used up this period but paid for next period
Answer: Costs of items used up this period but paid for next period
Explanation:
Period Expenses for the period are transactions that should be expensed because they were used in the current period.
Therefore if a period cost is not used in the period, it is not considered a period cost even if the company pays for it in the current period which also means that if a period cost for the period is not paid in the current period but in the next one, it is still a period cost for the current period.
From the above therefore, the period cost is the cost of items used up in this period but paid for in the next one.
The land purchased might look like the obvious choice but it is not because Assets are capitalised and not expensed.
The amount of increase or decrease in revenue that is expected from a particular course of action as compared with an alternative is termed: Group of answer choices manufacturing margin contribution margin differential cost differential revenue Flag this Question Question 21 pts Partridge Co. can further process Product J to produce Product D. Product J is currently selling for $21 per pound and costs $15.75 per pound to produce. Product D would sell for $37 per pound and would require an additional cost of $9.25 per pound to produce. What is the differential cost of producing Product D
Answer:
a) The amount of increase or decrease in revenue that is expected from a particular course of action as compared with an alternative is termed:
Differential Revenue
b) The Differential cost of producing Product D is the additional cost of $9.25 per pound.
Explanation:
a) Differential Revenue is the difference in sales revenue that results from two different courses of action.
b) The corporate finance institute defines Differential cost as "the difference between the cost of two alternative decisions."
"An investor wishes to buy a new issue of U.S. Government agency bonds. You recommend that the customer purchase Federal Home Loan Bank bonds with a 20 year maturity. An investor who purchases the new issue of Federal Home Loan Bank bonds can expect to pay:"
Answer: A. Par
Explanation:
While US Government bonds are usually sold at auction which means a price different from Par, Federal Agency bonds operate much like Corporate Bonds in their selling procedure. They engage a group of Underwriters called a Selling group which can be made up of large banks and brokers.
These underwriters will then handle everything that have to do with the sale and sell it to the public. Like a Corporate listing, they get a commission from this.
Because of this direct sale by the Underwriter to the public, the Public is most likely to get the offering at Par.
According to this case study, what is an upcoming key technology that will be used in retail stores to improve customer service? And how it is currently being used? What will be the role of smartphones in the future of shopping? Support your claim with a reference.
Answer:
1. According to the case study (copy attached) "the upcoming technology that will be used in retail stores to improve customer service is the Scan As You Go Mobile Devices".
2. It is currently being used by sales officers in some shopping malls to scan items on the spot and let customers pay without going through the cash registers.
It is also being used to help customers take advantage of discounts and coupons on items being purchased. The effect is that customers spend 10% when they shop using this technology.
3. In the future, the customers will be able to check out using their smartphones.
4. According to the case study, the technology referred to in 3 above is already pioneered by Apple Stores.
Cheers!
Compute ending merchandise inventory, cost of goodssold, and gross profit using the (1) FIFO inventory costingmethod, (2) LIFO inventory costing method, and (3) weighted-average inventory costing method. (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest dollar.)
Begin by determining ending merchandise inventory and cost of goods sold under each of the three methods.
Requirement 1.
FIFO
Plus:
Less:
Cost of goods sold
Requirement 2.
LIFO
Requirement 3.
Weighted-Average
Additional Information:
June.1 Beginning merchandise inventory 17 units at $15each
12 Purchase 5 units at $19each
20 Sale 14 units at $37each
24 Purchase 11 units at $23each
29 Sale 13 units at $37each
Answer:
a) Ending Merchandise Inventory and Cost of Goods Sold under FIFO:
Beginning Inventory, 17 units at $15each $255
Plus Purchases:
June 12 Purchase, 5 units at $19each 95
June 24 Purchase, 11 units at $23each 253
Cost of Goods Available for Sale $603
Less Ending Inventory 138
Cost of Goods Sold $465
b) Ending Merchandise Inventory and Cost of Goods Sold under LIFO:
Beginning Inventory, 17 units at $15each $255
Plus Purchases:
June 12 Purchase, 5 units at $19each 95
June 24 Purchase, 11 units at $23each 253
Cost of Goods Available for Sale $603
Less Ending Inventory 90
Cost of Goods Sold $513
c) Ending Merchandise Inventory and Cost of Goods Sold under Weighted Average:
Beginning Inventory, 17 units at $15each $255
Plus Purchases:
June 12 Purchase, 5 units at $19each 95
June 24 Purchase, 11 units at $23each 253
Cost of Goods Available for Sale $603
Less Ending Inventory 109.62
Cost of Goods Sold $493.38
2. Ending Inventory = 6 units (17 units + 5 - 14 + 11 - 13)
FIFO LIFO Weighted Average
Ending Inventory value = $23 *6 = $138; $15 *6 = $90; $18.27 *6 = $109.62
Weighted Average = Cost of Goods Available for Sale / Quantity Available for Sale = $603/33 = $18.27 per unit
Explanation:
FIFO: First In, First Out: This is a method of costing inventory which assumes that goods remaining in stock are those that were brought in last. This means that goods are sold out according to the time they are bought, with earlier bought goods being sold before later bought goods.
LIFO: Last In, First Out: This costing method assumes that goods that are sold are those that were bought later leaving those bought earlier to remain in stock. The entity using this method exhausts the last quantity bought before selling the earlier quantities.
Weighted Average: This is another technique which weighs the averages of the cost of inventory before determining the value of inventory. The weighted average method divides the cost of the goods available for sale by the number of those units still on the shelf. The result is the weighted average cost per unit, which can be used to assign a cost to both the ending inventory and the cost of goods sold.
After observing the heavy snow that his town received the previous winter, Ajay Patel, an enterprising student, plans to offer a show-clearing service in his neighborhood this winter. If he invests in a new heavy-duty blower. Ajay forecasts a profit of $700 if snowfall this winter is heavy, a profit of $200 if it is moderate and a loss of $900 if it is light. As per the current weather forecasts, the probabilities of heavy, moderate and light snowfall this winter are 0.4, 0.3 and 0.3 respectively.
Rather than purchase a new blower, Ajay could get his father's blower repaired and just accept smaller jobs. Under this option, Ajay estimates profit of $350 for a heavy snowfall, and a loss of $150 for a light snowfall. Ajay, of course has the option of choosing neither of these options.
The local weather Adams, is Ajay's good friend. For $50, she is willing to run sophisticated computer weather models on her computer and tell Ajay whether she expects this winter to be cold. For the sake of solving this problem, assume that the following information is available. There is a 45% chance that Samantha will predict this winter to be unseasonably cold. If she does say this, the probabilities of heavy, moderate, and light snowfall are revised to 0.7, 0.25, and 0.05, respectively. On the other hand, if she predicts that this winter will not be unseasonably cold, these probabilities aye revised to 0.15, 0.33, and 0.52, respectively.
Draw the decision tree for the situation faced by Ajay. Fold back the tree and determine the strategy you would recommend he follow. What is the efficiency of Samantha's information?
Business strategy focuses on:_______.
a. ensuring that the company maintains the existing market share that it has historically enjoyed.
b. improving the competitive position of a corporation's products or services within the industry or market segment served.
c. providing adequate shareholders' return on investment. preventing the competition from gaining a competitive edge by undermining their marketing plan.
d. recovering the competitive lead by using all available resources that the company can provide.
Answer:
b. improving the competitive position of a corporation's products or services within the industry or market segment served.
Explanation:
Business strategy is defined as various decisions and actions a business takes in order to reach its goals and stay competitive in the industry.
This guides the business on resource allocation.
Adjustments to business strategy is continous to tackle challenges a business faces in maintaining bits competitive advantage in the market.
So business strategy focuses on improving the competitive position of a corporation's products or services within the industry or market segment served.
You have a portfolio that is invested 17 percent in Stock A, 38 percent in Stock B, and 45 percent in Stock C. The betas of the stocks are .62, 1.17, and 1.46, respectively. What is the beta of the portfolio
Answer:
The portfolio beta is 1.207
Explanation:
The portfolio beta is the weighted average of the individual stock betas that form up the portfolio. The weightage of each stock in the portfolio is calculated on the basis of investment in that stock as a proportion of total investment in the portfolio. The portfolio beta is calculated as follows,
Portfolio beta = Weight of Stock A * Beta of Stock A + Weight of Stock B * Beta of Stock B + ... + Weight of Stock N * Beta of Stock N
Portfolio beta = 0.17 * 0.62 + 0.38 * 1.17 + 0.45 * 1.46
Portfolio beta = 1.207
Cullumber Company issues $3.40 million, 20-year, 9% bonds at 98, with interest payable on December 31. The straight-line method is used to amortize bond discount. Collapse question part (a) Partially correct answer.
Prepare the journal entry to record the sale of these bonds on January 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Entry field with correct answer
Answer:
Dr cash $3,332,000
Dr discount on bonds payable $68,000
Cr bonds payable $3,400,000
Explanation:
The cash proceeds from the bond issuance is 98% of the face value.
Cash proceeds=$3,400,000*98%=$3,332,000.00
This meant that the bond was issued at a discount of $ 68,000.00 ($3,400,000-$3,332,000).
In recording the bond issuance, the cash account is debited with the cash proceeds of $3,332,000 with the discount on bonds payable debited with $68,000 while bonds payable is credited with the face value of $3,400,000
New Age Makeup produces face cream. Each bottle of face cream costs $10 to produce and can be sold for $13. The bottles can be sold as is, or processed further into sunscreen at a cost of $14 each. New Age Makeup could sell the sunscreen bottles for $23 each.
A) Face cream must be processed further because its profit is $9 each.
B) Face cream must not be processed further because costs increase more than revenue.
C) Face cream must not be processed further because it decreases profit by $1 each.
D) Face cream must be processed further because it increases profit by $3 each.
Answer:
Face cream must not be processed further because costs increase more than revenue.
Explanation:
Profit = Total revenue - Total cost
If sold as face cream, total profit = $13 - $10 = $3
If processed into sunscreen , total cost = $10 + $14 = $24
Profit = $24 - $23 = $1
The profit from selling the product as a face cream is greater than the profit of developing it to a face cream. So the product shouldn't be developed further.
I hope my answer helps you
Fleet Delivery Corporation is a public company with a market capitalization of less than $75 million. Fleet is poised to issue securities in a transaction that, under the Securities Act of 1933, is "exempt." This enables Fleet to ______________.
Answer:
This enables Fleet to reduce costs of regulatory compliance in relation to the security issue
Explanation:
When a company is exempt under the Securities Act of 1993,this implies that when issuing securities in the market place,the stock exchange ,the company is not required to produce audited financial statements.
Auditing financial statements sometimes cost fortunes especially when it is also required that one of the Big-4 professional firms is to be consulted.
By not requiring audited financials,the costs of audit is saved,hence cost of compliance with exchange rules is reduced overall
Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash disbursements (excluding cash disbursements for loan principal and interest payments) for the first three months of next year. Cash Receipts Cash DisbursementsJanuary $525,000 $475,000 February 400,000 350,000 March 450,000 525,000
According to a credit agreement with the company’s bank, Kayak promises to have a minimum cash balance of $30,000 at each month-end. In return, the bank has agreed that the company can borrow up to $150,000 at an annual interest rate of 12%, paid on the last day of each month. The interest is computed. based on the beginning balance of the loan for the month. The company repays loan principal with available cash on the last day of each month. The company has a cash balance of $30,000 and a loan balance of $60,000 at January 1. Prepare monthly cash budgets for each of the first three months of next year
Answer:
Kayak Co.
Cash Budget
January February March
Cash inflows: $525,000 $400,000 $450,000
Cash outflows: ($475,000) ($350,000) ($525,000)
Monthly cash flow: $50,000 $50,000 ($75,000)
Monthly interests: ($600) ($106) $0
Initial cash balance: $30,000 $30,000 $69,294
Ending cash balance: $79,400 $79,894 ($5,706)
Required bank loan: $0 $0 $35,706
Payment of bank loan: ($49,400) ($10,600) $0
Total $30,000 $69,294 $30,000
Explanation:
Cash Receipts Cash Disbursements
January $525,000 $475,000
February $400,000 $350,000
March $450,000 $525,000
A cash budget is the estimation of the business's future cash flows including estimated revenues and expenses.
T-bills currently yield 5.0 percent. Stock in Danotos Manufacturing is currently selling for $87 per share. There is no possibility that the stock will be worth less than $80 per share in one year.
Required:
a. What is the value of a call option with a $76 exercise price?
b. What is the intrinsic value?
c. What is the value of a call option with a $68 exercise price?
d. What is the intrinsic value?
e. What is the value of a put option with a $76 exercise price?
f. What is the intrinsic value?
Answer:
a) Call option = Stock price - present value of the exercise price
= $87 – [$76 ÷ 1.05]
= $14.62
b) The intrinsic value is the amount by which the stock price exceeds the exercise price of the call, so the intrinsic value is
= $87 - $76
=$11
c) Call option = Stock price - present value of the exercise price
= $87 – [$68 ÷ 1.05]
= $22.24
d) The intrinsic value is the amount by which the stock price exceeds the exercise price of the call, so the intrinsic value is
= $87 - $68
=$ 19.
e) The value of the put option is $0 because there's no chance the put exhausts the money.
f) The intrinsic value is also $0
Explanation:
Genzyme, the maker of Cerdelga, a drug that treats a genetic illness called Gaucher's disease that affects 10,000 people worldwide, has been criticized for charging up to $300,000 for a year's worth of Cerdelga. This is an example of the manufacturer adhering to its
Answer:
Profit responsibility
Explanation:
The manufacturer is adhering to its profit responsibility. profit responsibility gives us the insight that a company or companies have a primary duty of profit maximization for its owners or stockholders.
Some facts to be considered are:
1. How do these companies recover the costs of doing business. That is how do they make gain from research and development if they give away their discoveries
2. How do stakeholders gain if Cerdelga is being sold at a loss.
Ivanna, who has three children under age 13, worked full-time while her spouse, Sergio, was attending college for nine months during the year. Ivanna earned $28,000 and incurred $9,100 of child care expenses. Ivanna and Sergio's credit for child and dependent care expenses is?
Answer:
$1,260
Explanation:
Remember, we are dealing with a case of a married couple. Therefore, we apply the tax credit rule patterning to legally married couples.
Note that the rule is restricted to the lesser of
- real expenses,
- $6,000 (in this case they have three children which implies they have more than two qualifying children),
- the total earned income of the lowest taxpayer in the family.
Since the rule gives an exception for students. We could assumed that Sergio earned $500 for each month he was attending college. That is 9 * $500 = $4,500; the Credit = $4,500 * 28%= 1,260
Based on the period Sergio attended college and the relevant tax laws, Sergio's credit is $1,260.
When a person is going to college, they are assumed to make $500 per month. Sergio's earnings are therefore:
= 500 x 9 months
= $4,500
With a joint Adjusted Gross Income of $28,000 for the both of them, they can get a tax credit of 28% of their earnings.
As Sergio is assumed to have made $4,500, the tax credit is:
= 28% x 4,500
= $1,260
In conclusion, Sergio's credit is $1,260.
Find out more at https://brainly.com/question/18801773.
Frank Barlowe is retiring soon, so he is concerned about his investments providing him with a steady income every year. He is aware that if interest rates , the potential earnings power of the cash flow from his investments will increase. In particular, he is concerned that a decline in interest rates might lead to annual income from his investments. What kind of risk is Frank most concerned about protecting against? Reinvestment rate risk Interest rate risk
Answer:
Increase
less
A) Reinvestment rate risk.
Explanation:
Reinvestment rate risk is demonstrated as the type of financial risk in which the investor is concerned about his investment getting canceled or stopped in the future and the other party/place might not be able to provide a similar rate of return.
In the given situation, Frank Barlowe is concerned about reinvestment risk. He is aware that he will earn a steady income from his investments as he knows that when the interest rates increase, his potential returns would increase and vice versa. But since he is retiring, he has a potential concern that if the investment gets abandoned somehow, he might not be able to reinvest his amount at the same rate and will not be able to continue with steady returns. Thus, option A is the correct answer.
A decrease in operating expenses would have which of the following effects on a company's profit margin? Multiple Choice There is not enough information given to determine the effect. Net profit margin would increase. Net profit margin would decrease. Net profit margin would remain unchanged.
Answer: Net profit margin would increase.
Explanation:
A company's net profit margin is the Net Profit divided by Revenue. Net Profit is derived by subtracting some expenses and liabilities from the Revenue such as Cost of Goods as well as operating expenses.
If operating expenses were to reduce therefore, there would be less subtractions from the revenue. The would translate to a higher Net Profit and when that is then divided by the Revenue, it will give a higher Net Profit Margin.
Here are the 2015 revenues for the Wendover Group Practice Association for four different budgets (in thousands of dollars):
Static Budget Flexible (Enrollment/ Utilization) Budget Flexible (Enrollment) Budget Actual Results
$425 $200 $180 $300
a. What do the budget data tell you about the nature of Wendover's patients: Are they capitated or fce-for-service?
b. Calculate and interpret the following variances: Revenue variance Volume variance Price variance Enrollment variance Utilization variance
Answer: The answer is provided below
Explanation:
a). The revenue here shows that
Wendover's patients were capitated. The is because the actual revenue figures were assumed to be $180, but it
later came to $300 which means that the revenue increased.
The reason is that a capitated patient provides fixed payment a year, while a fee for service client pays per usage. With this explanation, it can be concluded that majority of Wendover's patients are fee for service because the difference between static results and the actual results is very high.
) 1. Revenue variance
= Actual Revenues - Static budget
= $ 300 - $ 425
= - $125
2. Volume variance
= Flexible Revenue - Static Budget
= $ 200 - $ 425
= - $ 225
3. Price Variance
= Actual Revenues - Flexible Revenues
=$300 - $200
= $100
4. Enrollment variance
= Flexible Revenues - Static Budget
= $ 180 - $ 425
= - $ 245
5. Utilization variance
= Flexible Revenue- Flexible Budget
= $ 200 - $ 180
= $ 20
Answer:
Kindly check Explanation
Explanation:
The difference between capita tes and fee-for-service is how payment is made, In capitates, a fixed annual amount is paid whereby In fee-for-service, payment is made separately for each service demanded. Thus it could be concluded from the data they the patients are fee-for - service due to the difference in the static and actual figure provided.
Given the following :
Static Budget - $425
Flexible (Enrollment/ Utilization) -$200
Budget Flexible (Enrollment) Budget -$180
Actual Results - $300
B)
Revenue variance = (Actual Revenues - Static Revenue)
Revenue variance = ($300-$425) = -$125 (Unfavorable)
This shows that the Wendover have less patients who use the services.
Volume variance = (Flexible Revenues (enrollment and utilization) – Static Revenues)
Volume variance = ($200 – $425) = -$225
Price variance = (Actual Revenues – Flexible Revenue)
Price variance = ($300 - $200)
Price variance = $100 F
Price variance is favorable which means service charge is high.
Enrollment variance = (Flexible Revenues (enrollment) – Static Revenue)
Enrollment variance = $180 – $425 = -$245
Utilization variance =Flexible revenues (enrollment/utilization) - Budget Flexible (Enrollment) Budget
$200 - $180 = $20
client becomes dissatisfied with the progress that Engineer A is making on his project. As a result, he terminates the services of Engineer A and hires Engineer B to complete the work. Engineer B: Must be able to document his or her effort of reworking the entire design process. Must take complete responsibility for the documents.s Must notify Engineer A, by certified mail, of his intentions to reuse already sealed documents. All of the ab
Answer:
The correct answer is all of the above.
Explanation:
Solution
When a client is not happy with the work of the former Engineer A on his project, if he hires Engineer B to finish the work, the new Engineer must take into consideration the past work of his predecessor.
He has to check the overall work manual of the previous engineer, so as to input his own idea to make the work much better and satisfactory for the client.
He (Engineer B) should be able to keep track in documenting his or her effort while redoing the entire design process stage.
He can also asked questions from the previous Engineer in case he his not understanding dome things or facing some issues towards the project work.
The four option here, are correct
Larry Company makes and sells 2 models of dishwashers, Model ABC and Model XYZ. For every 2 Model ABC sold, 3 Model XYZ are sold. The following information is also provided: Model ABC Model XYZ Sales per unit $ 490 $ 730 Variable Cost per unit $250 $300 CM per unit $ 240 $ 430 What is the weighted average contribution margin?
Answer:
$354
Explanation:
The computation of the weighted average contribution margin is shown below:
= (Contribution margin per unit for Model ABC × Sales mix for model ABC) + (Contribution margin per unit for Model XYZ × Sales mix for model XYZ) ÷ (Sales mix for model ABC + Sales mix for model XYZ)
= ($240 × 2 models + $430 × 3 models) ÷ (2 models + 3 models)
= ($480 + $1,290) ÷ (5 models)
= $354
We simply applied the above formula
The following comparative income statement (in thousands of dollars) for the two recent fiscal years was adapted from the annual report of Speedway Motorsports, Inc., owner and operator of several major motor speedways, such as the Atlanta, Texas, and Las Vegas Motor Speedways.
1 Current Year Previous Year
2 Revenues:
3 Admissions $116,034.00 $130,239.00
4 Event-related revenue 151,562.00 163,621.00
5 NASCAR broadcasting revenue 192,662.00 185,394.00
6 Other operating revenue 29,902.00 26,951.00
7 Total revenue $490,160.00 $506,205.00
8 Expenses and other:
9 Direct expense of events $101,402.00 $106,204.00
10 NASCAR purse and sanction fees 122,950.00 120,146.00
11Other direct expenses 18,908.00 20,352.00
12 General and administrative 183,215.00 241,223.00
13 Total expenses and other $426,475.00 $487,925.00
14 Income from continuing operations $63,685.00 $18,280.00
Required:
A. Prepare a comparative income statement for these two years in vertical form, stating each item as a percent of revenues. Enter all amounts as positive numbers. Rounding instructions
B. Comment on the significant changes.
Prepare a comparative income statement for these two years in vertical form, stating each item as a percent of revenues. Enter all amounts as positive numbers. Rounding instructions
Answer:
A)
Speedway Motorsports, Inc.
Comparative Income statement
For the Years 202x and 202x₋₁
202x 202x₋₁
Total revenue $490,160 $506,205
Admissions 23.67% 25.73%Event related 30.92% 32.32%NASCAR broadcasting 39.31% 36.63%Other operating revenue 6.1% 5.32%Direct expenses: 49.63% 48.74%
Direct expense of events 20.69% 20.98% NASCAR purse & sanction fees 25.08% 23.73%Other direct expenses 3.86% 4.03%General and administrative 37.38% 47.65%
Income from continuing operations 12.99% 3.61%
B) The most significant changes are that total revenues actually decreased, but net income from operating activities actually creased both in $ amounts and as % of total revenue. Direct expenses remained at similar levels during both years, even 202x₋₁ direct expenses were lower. But the most significant cost reduction was made on general and administrative expenses which were lowered by almost 10% (compared to total revenues). Only NASCAR broadcasting related revenues increased, while all the other revenues decreased in % and absolute amounts.
Between 2015 and 2016, the country of North Grogolia experienced a growth rate of -1.4%. If nominal GDP had increased by 3.1% and the population growth was recorded at 0.7%, then calculate the annual inflation rate in North Grogolia. Give your answer to one decimal.
Answer: 3.8%
Explanation:
To calculate this you can use the Economic Growth Formula because price change is one of the components of the equation and as you may know, inflation is the change in Prices from one period to the next.
The Equation is,
Economic Growth = % Δ Nominal GDP – % Δ Prices – % Δ Population.
Making % Δ Prices the subject gives,
% Δ Prices = - Economic growth + % Δ Nominal GDP - % Δ Population
= - (- 1.4%) + 3.1% - 0.7%
= 1.4% + 3.1% - 0.7%
= 3.8%
The inflation rate is therefore 3.8%
A banking system has a reserve ratio equal to 15%. For every $100 deposited into the banking system, the bank is required to keep 2 at least ____________ on reserve and can therefore lend no more than _________ Instructions: Enter a whole number in each box above.
b. For this banking system, the money multiplier is equal to__________meaning that $100 of cash deposited into the banking system 4 points can be turned into ___________ deposits through the money creation process.
Answer:
A banking system has a reserve ratio equal to 15%. For every $100 deposited into the banking system, the bank is required to keep 2 at least ____$15________ on reserve and can therefore lend no more than ___$85______ Instructions: Enter a whole number in each box above.
b. For this banking system, the money multiplier is equal to_____6.67_____meaning that $100 of cash deposited into the banking system 4 points can be turned into ___$667________ deposits through the money creation process.
Explanation:
a) Reserve Ratio: This is the portion of deposit liabilities that commercial banks must keep, rather than lend out or invest as determined by the country's central bank. In the United States, the Federal Reserve determines the Reserve Ratio and uses it to control the money supply in the economy.
b) The Money Multiplier refers to the change that happens when an initial deposit leads to a bigger final increase in the total money supply. For example, a commercial bank has deposit liability of $1 million and this leads to a final money supply of $10 million. The money multiplier is 10. The formula for calculating the money multiplier is 1/RR, where RR is the Reserve Ratio. This means that the money multiplier is a function of the reserve ratio.
A company's beginning Work in Process inventory consisted of 21,500 units that were 20% complete with respect to direct labor. These beginning units were completed and another 92,400 units were started during the current period. Of those started, 61,500 were finished and the remaining 30,900 were 40% complete at the end of the period. Using the weighted-average method, the equivalent units of production with regard to direct labor were:
Answer:95,360 units.
Explanation:The equivalent unit of production shows the quantity of work done by a manufacturing company on units of output partially completed at the end of a period.
Equivalent units of production =Units completed(work n progress at beginning + finished goods)+Ending work in progess
=(21,500+61, 500)+(30,900×40%)
=83,000 + 12,360
=95,360 units.
The equivalent units of production for conversion is 95,000 units.
Which of the following statements is incorrect? Group of answer choices Cost of goods available for sale will always be equal to or greater than cost of goods sold. Ending inventory exceeds beginning inventory when purchases are greater than cost of goods sold. Cost of goods sold exceeds purchases when ending inventory is less than beginning inventory. Ending inventory is greater than beginning inventory when purchases are less than cost of goods sold.
Answer:
Ending inventory is greater than beginning inventory when purchases are less than cost of goods sold.
Explanation:
Ending inventory is greater than beginning inventory when purchases are less than cost of goods sold is the wrong answer option
Ending inventory is the amount of inventory a company has in stock at the end of it's fiscal year. It is the beginning inventory plus net purchases minus cost of goods sold.
When the beginning inventory is greater than the ending inventory, then has been sold in the period than you bought.
Mr. Grove's argument is to provide additional incentives to U.S. firms for domestic investment in more mass production. If implemented, this would have the largest impact on firms using which of the four integration-responsiveness strategies?A) Transnational strategy because such incentives help differentiation.B) Multi-domestic strategy because incentives would increase global responsiveness.C) Global-standardization strategy because incentives would lower domestic costs.D) International strategy because these incentives would reduce pressure for responsiveness globally.E) Global-standardization strategy because incentives align with the death-of-distance.
Answer:
The correct answer is the option C: Global-standarization strategy because incentives would lower domestic costs.
Explanation:
To begin with, the term of ''global-standarization strategy'' in the field of business is known because of being part of the group of the four integration-responsiveness strategies and is the one that focus in the standarization of the product in a globally way. Therefore that this type of strategy is the one that would be used in the case of looking for an investment in the mass production locally due to the fact that the firms will be producing goods in a standard way and therefore that they would use universal supplies in every production in order to increase the amount of the production to achieve a mass number.
Maple Aircraft has issued a convertible bond at 4.75% interest due 2020. The market price of the convertible is 93% of face value (face value is $1,000). The conversion price is $45. Assume that the value of the bond in the absence of a conversion feature is about 63% of face value. How much is the convertible holder paying for the option to buy one share of common stock?
Answer:
The convertible holder paying for the option to buy one share of common stock is $13.63
Explanation:
According to the given data we have the following:
Value of convertible bond=93%*1,000=$930
Value of straight bond=63%*1,000=$630
Value of warrants=$300
Hence, number of warrants per bond=$1,000/$45
number of warrants per bond=22
Therefore, price of one warrant=$300/22
price of one warrant=$13.63
The convertible holder paying for the option to buy one share of common stock is $13.63
Suppose that the government spending multiplier is 3.2 and the tax multiplier is 2.9. This means that, if prices are constant, a $200 billion rise in government spending will __________________, and a $200 billion cut in taxes will _____________________.
Answer:
At constant prices, a $200 billion rise in government spending will increase Real GDP by 640 billion
and;
A $200 billion cut in taxes will increase real GDP by 580 billion
Explanation:
Government spending multiplier = 3.2
Tax multiplier = 2.9
Mathematically;
ΔY/ΔG = 3.2
ΔY/200 = 3.2
ΔY = 200 * 3.2
ΔY = 640 billion
Cut in taxes;
Tax multiplier = 2.9
ΔY/ΔT = 2.9
ΔY/200 = 2.9
ΔY = 2.9 * 200
ΔY = 580 billion
