Answer:
(A)0.6600 (B) 1.325 (C) 0.997 or 1 minute
Explanation:
Solution
Given that:
The constant rate = 30 seconds
The arrival rate according to Poisson distribution is = 45 seconds
Now,
(A) We solve for the average length line of cars
The formula is given below:
Lq = λ²/ 2μ ( μ -λ)
Here,
λ = this is the mean time of arrival rate
μ = This is the mean service rate
Thus we compute for the mean time arrival rate which is given below:
The mean arrival rate λ = arrival rate/ 60 seconds
= 60/45
= 1.33 customer per minute
Then we solve for the means service rate which is given below
The mean service rate μ = 60 seconds/ mean rate
= 60/30 = 2 customer per minute
We will now solve for the average line length in cars which is shown below:
Lq = λ²/ 2μ ( μ -λ)
Lq = 1.33²/2*2 (2-1.33)
Lq = 1.7689/4 (0.67)
Lq = 1.7689/2.68
Lq = 0.6600
Therefore the average length in line for cars is 0.6600 cars
(B) We solve for the average number of cars in the system
Ls =Lq + λ /μ
Ls =0.600 + 1.33/2
Ls =0.6600 + 0.665
Ls = 1.325
(C) Finally we need to find the expected average time in the system which is shown below:
Ws = Ls/λ
Ws= 1.325/1.33 = 0.997 or 1.00
The expected time average in the system is 0.997 or 1.00 minutes.
(A) The average length in line for cars is 0.6600 cars
(B) Ls = 1.325
(C)The predicted time standard in the system is 0.997 or 1.00 minutes.
What is Average Time?The constant rate = 30 seconds
The arrival rate according to Poisson disbandment is = 45 seconds
(A) We solve for the average stature line of cars
The formula is given below:
Lq = λ²/ 2μ ( μ -λ)
Here,
λ = this is the meantime of arrival rate
μ = This is the mean service rate
Thus we compute for the meantime arrival rate which is given below:
The mean formation rate λ = arrival rate/ 60 seconds
= 60/45
= 1.33 customer per minute
Then we solve for the concessions service rate which is given below
The mean service rate μ = 60 seconds/ mean rate
= 60/30 = 2 consumer per minute
We will now solve for the average line length in cars which is shown below:
Lq = λ²/ 2μ ( μ -λ)
Lq = 1.33²/2*2 (2-1.33)
Lq = 1.7689/4 (0.67)
Lq = 1.7689/2.68
Lq = 0.6600
Hence the average length in line for cars is 0.6600 cars
(B) We solve for the average number of cars in the system
Ls =Lq + λ /μ
Ls =0.600 + 1.33/2
Ls =0.6600 + 0.665
Ls = 1.325
(C) Finally we need to find the anticipated average time in the system which is shown below:
Ws = Ls/λ
Ws= 1.325/1.33 = 0.997 or 1.00
The predicted time standard in the system is 0.997 or 1.00 minutes.
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Novak Corporation is preparing its 2014 statement of cash flows, using the indirect method. Presented below is a list of items that may affect the statement. Using the code below, indicate how each item will affect Novak’s 2014 statement of cash flows.
Code Letter
Effect
A Added to net income in the operating section
D Deducted from net income in the operating section
R-I Cash receipt in investing section
P-I Cash payment in investing section
R-F Cash receipt in financing section
P-F Cash payment in financing section
N Noncash investing and financing activity
(a) Purchase of land and building.
AR-I and DR-IR-F and ADR-F and DP-FP-IR-FNR-I and A
(b) Decrease in accounts receivable.
R-F and AR-FNR-I and DR-I and ADR-F and DAP-FR-IP-I
(c) Issuance of stock.
R-FAR-IDP-FR-F and AP-IR-F and DNR-I and DR-I and A
(d) Depreciation expense.
R-IP-FP-IR-F and DR-FNR-F and AR-I and AR-I and DAD
(e) Sale of land at book value.
R-F and DP-IADR-FR-IP-FNR-I and DR-I and AR-F and A
(f) Sale of land at a gain.
DR-I and DNR-IR-FR-F and AR-I and AR-F and DP-IAP-F
(g) Payment of dividends.
R-I and AP-IP-FDNAR-I and DR-IR-FR-F and DR-F and A
(h) Increase in accounts receivable.
R-F and ANAP-FP-IR-FR-I and DR-IR-I and AR-F and DD
(i) Purchase of available-for-sale investment.
ADR-I and DR-I and AR-F and DR-F and AP-FR-FNR-IP-I
(j) Increase in accounts payable.
R-F and DDR-F and AAR-IP-IR-FNR-I and DP-FR-I and A
(k) Decrease in accounts payable.
R-I and DNP-FR-F and AR-IR-I and AR-F and DDAP-IR-F
(l) Loan from bank by signing note.
R-I and DR-I and ANP-IDP-FR-F and DR-F and AAR-IR-F
(m) Purchase of equipment using a note.
R-F and DP-IR-FR-I and ANR-F and AP-FR-IR-I and DAD
(n) Increase in inventory.
NR-IP-FR-FP-IDR-I and DR-I and AAR-F and AR-F and D
(o) Issuance of bonds.
AP-FR-F and DNR-I and DR-F and ADR-FR-IP-IR-I and A
(p) Redemption of bonds payable.
R-I and DR-I and AR-IR-F and DP-FR-F and ADP-IANR-F
(q) Sale of equipment at a loss.
R-F and DNR-F and AR-I and DADR-I and AR-FR-IP-IP-F
(r) Purchase of treasury stock.
Answer: The answers are provided below
Explanation:
a) Purchase of land and building = P-I
This will be a cash payment in investing section
b) Decrease in accounts receivable = A
This will be added to the net income in the operating section
c) Issuance of stock = R-F
This will be a cash receipt in financing section
d) Depreciation expense = A
This will be added to the net income in the operating section
e) Sale of land at book value = R-I
This will be a cash receipt in investing section.
f) Sale of land at a gain = R-I and D
This will be a cash receipt in investing section and deducted from the net income in the operating section
g) Payment of dividends = P-F
This will be a cash payment in financing section
h) Increase in accounts receivable = D
This will be deducted from net income in the operating section
i) Purchase of available-for-sale investment = P-I
This will be a cash payment in investing section
j) Increase in accounts payable = A
This will be added to the net income in the operating section
k) Decrease in accounts payable = D
This will be deducted from net income in the operating section
l) Loan from bank by signing note = R-F
This will be a cash receipt in financing section
m) Purchase of equipment using a note = N
This will be a noncash investing and financing activity
n) Increase in inventory = D
This will be deducted from net income in the operating section
o) Issuance of bonds = R-F
This will be a cash receipt in financing section
p) Retirement of bonds payable = P-F
This will be a cash payment in financing section
q) Sale of equipment at a loss = R-I and A
This will be a cash receipt in investing section and will be added to the net income in the operating section
r) Purchase of treasury stock = P-F
This will be a cash payment in financing section
Elasticity and Demand for Food
A. Consider the information on real-world price elasticities for ten countries. Why do you think the price elasticity of demand for food is higher in Tanzania than in the U.S.? What does this imply about food purchases in the U.S. and Tanzania?
B. The government wants to maximize its tax revenue. Revenue is equal to the amount of the tax times the quantity of goods sold (i.e., revenue Tax . Q). Which will provide more tax gasoline or a tax on restaurant meals? Why?
Answer:
Why do you think the price elasticity of demand for food is higher in Tanzania than in the U.S.?
The price elasticity of demand for food is higher in Tanzania than in the U.S. because Tanzania is a much poorer country than the U.S., and a rise in food prices leads immediately to a large drop in demand, since most people will simply not have enough income to meet demand.
What does this imply about food purchases in the U.S. and Tanzania?
This implies that people in Tanzania spend less money on food, but also spend a larger share of their income on it.
Which will provide more tax gasoline or a tax on restaurant meals? Why?
The tax on gasoline will provide more funds because gasoline is a good that is way more inelastic than restaurant meals.
If restaurant meals become more expensive because of the tax, people will simply stop eating-out, and prepare home meals instead.
Gasoline, on the other hand, is very inelastic, and even if the price goes up a lot because of a very high tax, car owners will still have to purchase it, raising government revenue.
The balance sheet of Hidden Valley Farms reports total assets of $810,000 and $945,000 at the beginning and end of the year, respectively. The return on assets for the year is 15%. What is Hidden Valley's net income for the year
Answer:
$131,625
Explanation:
The computation of the net income for the year is shown below:
As we know that
Return on assets = net income ÷ average assets
0.15 = net income ÷ ($810,000 + $945,000) ÷ 2
0.15 = net income ÷ $877,500
So, the net income is
= $877,500 × 0.15
= $131,625
hence, the net income for the year is $131,625
We simply applied the above formula
On January 1, 2019, Nash Corporation granted 9,600 options to key executives. Each option allows the executive to purchase one share of Nash’s $5 par value common stock at a price of $21 per share. The options were exercisable within a 2-year period beginning January 1, 2021, if the grantee is still employed by the company at the time of the exercise. On the grant date, Nash’s stock was trading at $24 per share, and a fair value option-pricing model determines total compensation to be $438,000.
On May 1, 2021, 7,440 options were exercised when the market price of Culver’s stock was $30 per share. The remaining options lapsed in 2023 because executives decided not to exercise their options.
Prepare the necessary journal entries related to the stock option plan for the years 2019 through 2023.
Answer:
Dec 31 2019
Dr Compensation Expenses 219,000
Cr Paid in Capital- Stock Options 219,000
Dec 31 2020
Dr Compensation Expenses 219,000
Cr Paid in Capital- Stock Options 219,000
Dec 31 2021
Dr Cash 256,200
Dr Paid in Capital- Stock Options 339,450
Dr Common Stock 37,200
Cr Paid in capital in excess of par common stock 632,850
Dec 31, 2023
Dr Paid in capital stock options 98,550
Paid in capital Expired Stock Options 98,550
Explanation:
Nash Corporation
Dec 31 2019
Dr Compensation Expenses 219,000
Cr Paid in Capital- Stock Options 219,000
( 438,000/2 years)
Dec 31 2020
Dr Compensation Expenses 219,000
Cr Paid in Capital- Stock Options 219,000
Dec 31 2021
Dr Cash 256,200
(219,000+37,200)
Dr Paid in Capital- Stock Options 339,450
Dr Common Stock 37,200
Cr Paid in capital in excess of par common stock 632,850
Dec 31, 2023
Dr Paid in capital stock options 98,550
(438,000×22.5%)
Paid in capital Expired Stock Options 98,550
Computation of Paid in capital stock options
438,000×77.5%= $339,450
Common stock 7,440 X 5 per share
= 37,200
Stock options redeemed 7,440/9,600= 77.5%
Crowding out is associated with:
a. an increase in business investment resulting from an increase in government borrowing and higher interest rates.
b. a reduction in business investment resulting from an increase in government borrowing and higher interest rates.
c. an increase in private savings caused by higher future tax liabilities when government increases borrowing.
d. a decrease in government spending caused by a shortage of available credit.
Answer:
b. a reduction in business investment resulting from an increase in government borrowing and higher interest rates.
Explanation:
According to the crowding out theory, when there is an increase in government spending, private spending would be reduced.
When the government borrows, real interest rate would increase and this would reduce private sector spending.
I hope my answer helps you
Venus Creations sells window treatments (shades, blinds, and awnings) to both commercial and residential customers. The following information relates to its budgeted operations for the current year.
Commercial Residential
Revenues $300,000 $480,000
Direct materials costs $30,000 $50,000
Direct labor costs 100,000 300,000
Overhead costs 85,000 215,000 150,000 500,000
Operating income (loss) $85,000 $(20,000)
The controller, Peggy Kingman, is concerned about the residential product line. She cannot understand why this line is not more profitable given that the installations of window coverings are less complex for residential customers. In addition, the residential client base resides in close proximity to the company office, so travel costs are not as expensive on a per client visit for residential customers. As a result, she has decided to take a closer look at the overhead costs assigned to the two product lines to determine whether a more accurate product costing model can be developed. Here are the three activity cost pools and related information she developed:
Activity Cost Pools Estimated Overhead Cost Drivers
Scheduling and travel $85,000 Hours of travel
Setup time 90,000 Number of setups
Supervision 60,000 Direct labor cost
Expected Use of Cost Drivers per Product
Commercial Residential
Scheduling and travel 750 500
Setup time 350 250
What should Peggy Kingman do?
Answer and Explanation:
The explanation is shown below:-
First we need to find out the activity based overhead rates
Activity Estimated overhead Basis Quantity Activity based
cost overhead rates
Travel
and Scheduling $85,000 Hours of 1,250 $68
travel (700 + 500)
Set up time $90,000 Number of 600 $150
setups (350 + 250)
Supervision $60,000 Direct labor $400,000 15%
cost ($100,000 + $300,000)
Now we need to find out the overhead cost assigned to commercial which is shown below:-
Activity Activity based Actual allocation of Overhead
overhead rates cost drivers assigned
Travel and
Scheduling $68 750 $51,000
Set up time $150 350 $52,500
Supervision 15% $100,000 $15,000
Total $118,500
For computing the overhead assigned we simply multiply the activity based overhead rate with actual allocation of cost drivers.
after this we need to find out the overhead cost assigned to residential which is shown below:-
Activity Activity based Actual allocation of Overhead
overhead rates cost drivers
Travel and
Scheduling $68 500 $34,000
Set up time $150 250 $37,500
Supervision 15% $300,000 $45,000
Total $116,500
For computing the overhead we simply multiply the activity based overhead rate with actual allocation of cost drivers.
Finally we need to find out the operating income or loss for the commercial and residual which is shown below:-
Particulars Commercial Residential
Sales revenue $300,000 $480,000
Less: Direct material cost $30,000 $50,000
Less: Direct labor cost $100,000 $300,000
Less: Overhead costs
assigned $118,500 $116,500
Operating income (loss) $51,500 $15,500
The Peggy Kingman should establish the cost to be assigned based on the product lines for overhead cost as the Peggy Kingman is more focused to the overhead cost which were based on the activity cost drivers. Moreover, it shows a profit earned on residential product line
Suppose subway ridership in New York City declined by 10 percent after a fare increase of 25 cents to $2.75. Using the midpoint method, an estimate of the price elasticity of demand for subway rides is . True or False: According to your estimate, the Transit Authority's revenue rises when the fare increases. True False
Answer: Elasticity is 1.05
False
Explanation:
The Price Elasticity of Demand which measures how demand for goods change in relation to a change in price is calculated by the following formula,
Elasticity of demand = % change in Quantity ÷ % change in Prices
The Midpoint method is a method of estimating price percentage change by dividing the change in price by the AVERAGE of the new price and the old price.
The average of the changes are,
= (2.75 + (2.75 - 0.25))/2
= (2.75 + 2.5)/2
= 2.625
The Midpoint method gives a chance in price of,
= (2.75 - 2.65 )/ 2.625
= 9.5%
The Elasticity is therefore,
= Elasticity of demand = % change in Quantity ÷ % change in Prices
= 10% / 9.5%
= 1.05
According to this, the Transit Authority's revenue will not rise when Fair increases because the Elasticity is quite close to 1. An elasticity of 1 means that when fares increase, people using trains decrease by almost the same amount so revenue remains the same.
After hearing a knock at your front door, you are surprised to see the Prize Patrol from a large, well-known magazine subscription company. It has arrived with the good news that you are the big winner, having won $34 million. You have three options. (a) Receive $1.7 million per year for the next 20 years. (b) Have $11.5 million today. (c) Have $3.25 million today and receive $1,400,000 for each of the next 20 years. Your financial adviser tells you that it is reasonable to expect to earn 14 percent on investments.
Answer:
The requirement is to calculate the present value of each option:
$ 11.26 million
$11.5 million
$ 12.52 million
Explanation:
The present value formula in excel is very useful in this case:
=-pv(rate,nper,pmt,fv)
rate is the 14% interest rate to be earned per year
nper is duration of the payment
pmt is the amount of payment expected per year
fv is the is the future worth of the payment which is unknown
Option 1:
=-pv(14%,20,1.7,0)=$ 11.26 million
Option 2:
The amount receivable today is the present value i.e $11.5 million
option 3:
=-pv(14%,20,1.4,0)=$9.27 million
total =amount received today+$ 9.27 million=$3.25 million+$ 9.27 millon=$ 12.52 million
Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes through the cutting machine area, which is the chief constraint during production. Khaki shorts take 15 minutes on the cutting machine and have a contribution margin per pair of shorts of $16. Khaki pants take 24 minutes on the cutting machine and have a contribution margin per pair of pants of $32. If it is assumed that Rough Stuff has 4,800 hours available on the cutting machine to service a minimum demand for each product of 3,000 units, how much will profits increase if 100 more hours of machine time can be obtained?
Answer:
$8,000
Explanation:
khaki shorts khaki pants
machine minutes per unit 15 24
contribution margin per unit $16 $32
CM per machine minute $1.067 $1.33
minimum demand 3,000 3,000
machine minutes required 45,000 72,000
total machine minutes available 288,000
total machine minutes remaining 171,000
production 0 7,125
total production 3,000 10,125
total contribution margin $48,000 $324,000
if 100 more machines hours are added, then production time increases by 6,000 minutes which can be used to produce 250 more khaki pants. Contribution margin will increase by 250 x $32 = $8,000
I calculated contribution margin per minute, but you could also calculate contribution margin per hour to determine which product is more profitable. Contribution margin per hour for shorts = $64, and for pants = $80. The answer will not change.
Sundance systems has the following transactions during July.
July 5- Purchases 58 LCD televisions on account from Red River Supplies for $3,400 each, terms 2/10. n/30.
July 8- Returns to Red RIver two televisions that had detective sound.
July 13- Pays the full amount due to Red River.
July 28- Sells remaining 56 televisions purchased on July 5 fpr $3,900 each on account.Record the transactions of Sundance systems, assuming the company uses a perpetual inventory system.
Answer: Please see below for answers
Explanation:
Journal to record Purchase of goods.
Date General Journal Debit Credit
5TH July Inventory ( 58 x 3400) $197, 200
Accounts Payable $197,200
journal to record goods returned
Date General Journal Debit Credit
8TH July Accounts Payable (2 x 3400) $6,800
inventory $ 6,800
journal to record payment made to supplier
Date General Journal Debit Credit
13TH July Accounts Payable (197,200-6,800) $190,400
inventory ( 190,400 x2%) $3808
Cash( 190,400 - 3,808) $186,592
From the question, the conditions for payment states 2/10 and n/30 meaning that the company will get 2% discount if they pay for products in 10 days of payment. the company paid on 13th and therefore will get a discount which is $3,808.
journal to record sale of goods
Date General Journal Debit Credit
28TH July Accounts receivable(56x 3900) $218,400
Sales revenue $218,400
Journal to record cost of good sold
Date General Journal Debit Credit
28TH July cost of good sold $186,592
inventory $186,592
Martha, the chief designer of StyleSmartz, is considered a role model by her design team members for her role as an effective leader. Martha is considered an effective leader by the team due to her tendency to _____a. motivate employees by satisfying their basic necessities or low-level needsb. adopt a zero-tolerance stand on erring and unproductive employeesc. discourage employees from letting their emotions affect their workd. engage in management openness by encouraging members to voice their opinion
Answer:
engage in management openness by encouraging members to voice their opinion.
Explanation:
An important characteristic of management is approachability and openness of the manager to ideas of employees. This gives the manager an idea of the actual state of the workplace facilitating effective resolution of issues as they arise.
When employees know they can freely express themselves without being reprimanded, they better express themselves about challenges encountered.
Also opportunities and methods of doing things better is communicated to the manager
Lately the demand for building materials has dropped due to the slowdown in new housing construction. Woods Corp, is thinking of closing its fine wood division that produces mahogany and cherry lumber for building cabinets and other applications. Under the Boston Consulting Group Growth-Share Matrix, the fine wood division would most likely be classified as a:________.
A. dog
B. cash cow
C. top gun
D. star
Answer:
A. dog
Explanation:
The Boston Consulting Group growth share matrix is a graphical representation used in planning which of a companie's products should be kept, discarded, or invested more in.
Four categories of products are stars, dogs, cash cow, and question mark.
Dogs have low market share and low growth rate. Options for handling such products are selling, repositioning, or liquidation.
Demand for building materials has dropped due to the slowdown in new housing construction and the company is considering bclosing its fine wood division that produces mahogany and cherry lumber for building cabinets and other applications.
This division is most likely a dog
An investor requires a 3 percent increase in purchasing power in order to induce her to lend. She expects inflation to be 2 percent next year. The nominal rate she must charge is about:__________.a) 1 percent.b) 2 percent.c) 3 percent.d) 5 percent.e) 7 percent.
Answer:
Nominal rate = 5%
Explanation:
Given:
Require rate = 3%
Inflation rate = 2%
Find:
Nominal rate = ?
Computation:
⇒ Nominal rate = Require rate + Inflation rate
⇒ Nominal rate = 3% + 2%
⇒ Nominal rate = 5%
Therefore, The nominal rate she must charge is 5%
Callas Corporation paid $380,000 to acquire 40 percent ownership of Thinbill Company on January 1, 20X9. The amount paid was equal to Thinbill’s underlying book value. During 20X9, Thinbill reported operating income of $45,000 and income of $20,000 from gains on derivative contracts that were designated as cash flow hedges, so these gains were reported in Other Comprehensive Income (OCI). Thinbill paid dividends of $9,000 on December 10, 20X9.
Required:
a. Give all journal entries that Callas Corporation recorded in 20X9, associated with its investment in Thinbill Company.
b. Give all closing entries at December 31, 20X9, associated with its investment in Thinbill Company.
Answer: Please refer to Explanation
Explanation:
A.
January 1 20X9
DR Investment in Thinbill Company $380,000
CR Cash $380,000
(To record Investment in Thinbill Company)
DR Investment in Thinbill Company $18,000
CR Income from Thinbill Company $18,000
(To record income from Thinbill company)
DR Investment in Thinbill Company $8,000
CR Unrealised gain on Investment $8,000
(To record share of OCI reported by Thinbill Company)
DR Cash $3,600
CR Dividend $3,600
(To record dividend received from Thinbill Company)
Workings
Income from Thinbill Comapny
Callas owns 40% of Thinbill company and so is entitled to 40% of income which is,
= 40% x 45,000
= $18,000
Dividends
= 9,000 x 40%
= $3,600
Unrealised Gain on Income
= 20,000 x 40%
= $8,000
b. The closing entries are as follows,
DR Income from Thinbill Company $18,000
CR Retained Earnings $18,000
(To recognise income from Thinbill Company)
DR Unrealised Gain on Investment $8,000
CR Accumulated OCI Income from Investee (Thinbill Company) $8,000
(To record accumulated OCI income)
Plaintiffs filed a class action lawsuit against investment banks alleging that they inflated prices on more than 300 IPOs, causing IPO investors to overpay for stock, and unlawfully benefited these banks through overcompensation of banking commissions and profits made through quick sales of this stock in their own accounts before prices settled into a more realistic valuation. How would you combat such abuses going forward
Answer: The answer is provided below
Explanation:
When we think about investment, individuals and firms should understand the risks before they invest their money, and also the loss risks.
When investing in a business or a corporation that you may work for, it is vital to understand and be clear on the fine print and also the 180-dayhold. It is vital on any purchase to understand the risks and rules which come along with it especially stocks.
It is crucial to the success of an individual, that research is done in order to make sure everything is understood prior to the stock sale.
On the other side, federal banking regulators committee should also do a better job with the investigations and the enforcements of bank and the stock regulations.
Banfield Corporation makes three products that use compound W, the current constrained resource. Data concerning those products appear below: VP YI WX Selling price per unit $ 248.04 $ 230.66 $ 505.44 Variable cost per unit $ 190.71 $ 172.14 $ 388.80 Centiliters of compound W 3.90 3.80 8.10
Answer:
B) YI, VP, WX
Explanation:
VP YI WX
Selling price per unit
$248.04 $230.66 $505.44
Variable cost per unit
190.71 $172.14 $388.80
Contribution margin per unit
(Selling price - variable cost)
$57.33 $58.52 $116.64
The amount of the constrained resource that would be required to produce one unit
3.90 3.80 8.10
Therefore:
$57.33÷3.90=$14,70
$58.52÷3.80 =$15.40
$116.64÷8.10=$14.40
Therefore the Contribution margin per unit of the constrained resource would be
$14.70 $15.40 $14.40
Therefore the Ranking the products in order of their current profitability from most profitable to least profitable would be:
YI =$15.90
VP=$14.70
WX=$14.40
Which is YI VP WX
The manager of the customer service division of a major consumer electronics company is interested in determining whether the customers who have purchased a Blu-ray player made by the company over the past 12 months are satisfied with their products. Which of the following will be a good frame for drawing a sample? a. telephone directory b. a list of potential customers purchased from a database marketing company c. voting registry d. the list of customers who returned the registration card
Answer:
D. The list of customers who returned the registration card
Explanation:
The list of customers who returned the registration card will be a good frame for drawing the sample because it will enable the company to easily and effectively known how good or bad the Blu-ray player was when used by the customers and the satisfaction the customers had from using the company products which is why checking through the record or list of customers who returned the registration card can be good frame from drawing the sample without error occuring because it will give the company the correct and accurate result of all what they need to know about how good or bad their Blue ray player was and the satisfaction their customers derived from using it.
Answer:
D. The list of customers who returned the registration card
Explanation:
The list of customers who returned the registration card will be a good frame for drawing the sample because it will enable the company to easily and effectively known how good or bad the Blu-ray player was when used by the customers and the satisfaction the customers had from using the company products which is why checking through the record or list of customers who returned the registration card can be good frame from drawing the sample without error occuring because it will give the company the correct and accurate result of all what they need to know about how good or bad their Blue ray player was and the satisfaction their customers derived from using it.
Pickup Company acquired 100 percent of the voting common shares of Sedan Corporation by issuing bonds with a par value and fair value of $200,000. Immediately prior to the acquisition, Pickup reported total assets of $600,000, liabilities of $370,000, and stockholders’ equity of $230,000. At that date, Sedan reported total assets of $500,000, liabilities of $300,000, and stockholders’ equity of $200,000. Included in Sedan’s liabilities was an account payable to Pickup in the amount of $50,000, which Pickup included in its accounts receivable.
Based on the preceding information, what amount of total assets did Pickup report in its balance sheet immediately after the acquisition?
a. 1,100,000
b. 1,000,000
c. 800,000
d. 1,600,000
Answer:
c. $800,000
Explanation:
Relevant data provided
Beta reported total assets = $600,000
Fair value of investment = $200,000
The computation of total assets is shown below:-
Total assets did beta report = Beta reported total assets + Fair value of investment
= $600,000 + $200,000
= $800,000
Therefore for computing the total assets did beta report we simply added the beta reported total assets with fair value of investment.
Summary balance sheet data for Greener Gardens Co. is shown below (in thousands of dollars). The company is in a highly seasonal business, and the data show its assets and liabilities at peak and off-peak seasons: Peak Off-Peak Cash $ 50 $ 30 Marketable securities 0 20 Accounts receivable 40 20 Inventories 100 50 Net fixed assets 500 500 Total assets $690 $620 Payables and accruals $ 30 $ 10 Short-term bank debt 50 0 Long-term debt 300 300 Common equity 310 310 Total claims $690 $620 From this data we may conclude that a. Without cash flow data, we cannot determine the aggressiveness or conservatism of the company's current asset financing policy. b. Greener Gardens' current asset financing policy calls for exactly matching asset and liability maturities. c. Greener Gardens' current asset financing policy is relatively aggressive; that is, the company finances some of its permanent assets with short-term discretionary debt. d. Without income statement data, we cannot determine the aggressiveness or conservatism of the company's current asset financing policy. e. Greener Gardens follows a relatively conservative approach to current asset financing; that is, some of its short-term needs are met by permanent capital.
Answer: E.) Greener Gardens follows a relatively conservative approach to current asset financing; that is, some of its short-term needs are met by permanent capital.
Explanation: From the data given above, it could be inferred that Greener gardens Co. due to the seasonal nature of its business takes a conservative and measured approach into financing its current asset such as cash, account receivables, inventory, short term liability or debt
using permanent capital in other to shore up running cost or fluctuation which could result due to low revenue during the off peak period and cut the company's spending on certain short term needs.
Answer:
The answer is E. Gardens follows a relatively conservative approach to current asset financing; that is, some of its short-term needs are met by permanent capital.
Explanation:
The current asset financing policy concentrates on determining the most appropriate method of financing both temporary and permanent current assets.
There are 3 types of working capital financing policy - matching, conservative and aggressive.
In conservative financing policy, a business is required to maintain high levels of current assets in relation to its sales so as to absorb any sudden changes in the sales and thus avoid disruption in the production plans.
Working capital equals total current asset minus total current liability.
For peak period:
Current assets:
Cash. $50
Marketable securities. -
Account receivables. $40
Inventories $100
Total current assets. $190
Current liabilities:
Payables and accruals. $30
Short term bank debt. $50
Total current liabilities. $80
Therefore, working capital is:
$190 - $80
=$110
So Greener Gardens co. has excess working capital to cover for any sudden change in price.
Also for off peak:
Current assets:
Cash. $30
Marketable securities. $20
Account receivables. $20
Inventories $50
Total current assets. $120
Current liabilities:
Payables and accruals. $10
Short term bank debt. -
Total current liabilities. $10
Therefore, working capital is:
$120 - $10
=$110
For both on peak and off peak, the working capital is the same, meaning it is maintain a conservative policy that is dependent on its assets for financing.
Lloyd Inc. has sales of $250,000, a net income of $20,000, and the following balance sheet: Cash $51,000 Accounts payable $63,600 Receivables 118,800 Notes payable to bank 40,800 Inventories 294,000 Total current liabilities $104,400 Total current assets $463,800 Long-term debt 82,800 Net fixed assets 136,200 Common equity 412,800 Total assets $600,000 Total liabilities and equity $600,000 The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry average, 2.5x, without affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to 2.5x); if the funds generated are used to reduce common equity (stock can be repurchased at book value); and if no other changes occur, by how much will the ROE change? Do not round intermediate calculations. Round your answer to two decimal places. % What will be the firm's new quick ratio? Do not round intermediate calculations. Round your answer to two decimal places.
Answer:
If inventories are sold and not replaced (thus reducing the current ratio to 2.5x); if the funds generated are used to reduce common equity (stock can be repurchased at book value); and if no other changes occur The ROE will be of 9.4%
The firm's new quick ratio is 3.95
Explanation:
To calculate how much will the ROE change we have to calculate first the current ratio as follows:
Current ratio = Current assets / Current liabilities
2.5 times = (Cash + receivables + Inventories ) / (Accounts payable + Other current liabilities)
2.5 = ($51,000 + $118,800 + Inventories) / $104,400
$169,000 + inventories = $261,000
Inventories = $92,000
Therefore, $202,000 worth of inventories were sold off.
If the funds generated are used to reduce the common equity that is by repurchasing the equity at book value.
Hence, the common equity amounts to $210,800
Calculating the ROE before the inventory is sold off:
ROE = Net income / Steockholder's equity
= $20,000 / $412,800
= 0.048 or 4.8%
Calculating the ROE after selling off the inventory:
ROE = $20,000 / $210,800
= 0.094 or 9.4%
If inventories are sold and not replaced (thus reducing the current ratio to 2.5x); if the funds generated are used to reduce common equity (stock can be repurchased at book value); and if no other changes occur The ROE will be of 9.4%
The firm's new quick ratio is
Quick ratio = (Current assets - Inventories) / Current liabilities
= ($463,800 - $92,000) / $104,400
= 3.95
ive years ago, NorthWest Water (NWW) issued $50,000,000 face value of 30-year bonds carrying a 14% (annual payment) coupon. NWW is now considering refunding these bonds. It has been amortizing $3 million of flotation costs on these bonds over their 30-year life. The company could sell a new issue of 25-year bonds at an annual interest rate of 11.67% in today's market. A call premium of 14% would be required to retire the old bonds, and flotation costs on the new issue would amount to $3 million. NWW's marginal tax rate is 40%. The new bonds would be issued when the old bonds are called. Refer to the data for NorthWest Water (NWW). What is the required after-tax refunding investment outlay, i.e., the cash outlay at the time of the refunding?
Answer:
the required after-tax refunding investment Outlay is $6,200,000
Explanation:
Given that:
NorthWest Water (NWW) issued $50,000,000 face value
Time of issuance = 5 years ago
Bond = 30
Annual coupon payment = 14%
Amortizing amount of floating costs on these bonds over the 30 - year life is $3 million
Also;The company could sell a new issue of 25-year bonds at an annual interest rate of 11.67% in today's market.
Call premium = 14%
NWW's marginal tax rate is 40%
The objective from the given data set is to find the required after-tax refunding investment outlay, i.e., the cash outlay at the time of the refunding.
Initial Outlay = After tax call premium + Floatation cost - Unexpensed float cost
Initial Outlay = [tex](0.14 *50,000,000) + (1 - 0.40)+ $3,000,000 - ($3,000,000)*(\dfrac{25}{30})*0.40[/tex]
Initial Outlay [tex]=4,200,000+ 3,000,000-1,000,000[/tex]
Initial Outlay = $6,200,000
Therefore ; the required after-tax refunding investment Outlay is $6,200,000
When landlords wrongfully withhold security deposits, they can often be sued for three times the amount of the security deposit. Is this reasonable? Should a landlord have to pay $3000 for a $1000 debt? What if you fail to pay a rent on time? Should you have to pay three times the amount of your normal rent? If your answers to these two questions are different, why is that?
Answer:
yes it is reasonable
Explanation:
subsection 12 of chapter 4 of the articles of lease-rental agreement states that if a landlord wrongfully withhold security deposits the landlord must pay 3x the amount due to all legal actions and no we don't have to pay 3x rent if we miss a payment we only have to pay the late fee and any other listed fees listed on your lease
To increase productivity, your project team has completed the task to develop potential ideas for approval by senior management. While receiving feedback and guidance (message-receiving process) from senior management, you should IDEALLY:
Answer and Explanation:
A lot of the information and suggestions in this section assume a staff of at least five or six members, which is the number at which sustaining internal communication can become particularly difficult. This is not meant to imply that smaller organizations don't have internal communication needs, or that the need for good internal communication is any less in an organization with three staff members than in one with 30. If your staff is larger than one, internal communication is an issue that you can't afford to ignore. Most of the material that follows is relevant to small organizations as well as large ones. This section will help you establish an atmosphere and set up systems that will lead to good internal communication and to the effectiveness of your organization.
The majority of the advice and tips in this area are predicated on a team of at least five or six people, which is the threshold at which maintaining internal communication may be very challenging.
What is the Communication?Giving, receiving, and exchanging information are all parts of communication, which might take the form of talking, writing, listening, or reading. Listen intently, talk or write properly, and appreciate many points of view when communicating
This is not intended to imply that smaller firms don't require effective internal communication or that the need for it is any less in a company with three employees than in one with 30. Internal communication is a problem that you cannot afford to neglect if your staff is more than one. The majority of the information that follows applies to both small and large enterprises.
Therefore, It could be difficult to keep the lines of communication open inside.
Learn more about Communication here:
https://brainly.com/question/22558440
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Which of the following statements is CORRECT? a. If a company follows a policy of "matching maturities," this means that it matches its use of short-term debt with its use of long-term debt. b. If a company follows a policy of "matching maturities," this means that it matches its use of common stock with its use of long-term debt as opposed to short-term debt. c. Net working capital is defined as current assets minus the sum of payables and accruals, and any decrease in the current ratio automatically indicates that net working capital has decreased. d. Although short-term interest rates have historically averaged less than long-term rates, the heavy use of short-term debt is considered to be an aggressive strategy because of the inherent risks associated with using short-term financing. e. Net working capital is defined as current assets minus the sum of payables and accruals, and any increase in the current ratio automatically indicates that net working capital has increased.
Answer: d. Although short-term interest rates have historically averaged less than long-term rates, the heavy use of short-term debt is considered to be an aggressive strategy because of the inherent risks associated with using short-term financing.
Explanation:
Using short term financing is generally considered to be an aggressive strategy and is more often than not frowned upon by investors.
This is because of the reputational risk involved. A company that keeps using short term financing gives off the impression that it is barely keeping afloat and therefore relying on short term loans to continue functioning.
Other risks involved include, short term loans are usually given in small quantities so they cannot be used effectively as they will bareky go anywhere in terms of investment and their payback installment schedule can be in weeks instead of months like long term financing which can be detrimental to survival.
This is as opposed to a Conservative Approach that uses long term financing to finance most of it's Working Capital.
In Year 1, Sandy and Chris have adjusted gross income of $200,000. During the year, they provided more than half of the support for both of their unmarried adult children, Megna and Britt. Both children live near the colleges they are attending. Megna is a 25-year-old full-time graduate student with no earned income. Britt is a 22-year-old part-time student with $15,000 earned income from a part-time job. What is the total amount of child tax credit (including credit for other dependents), if any, that Sandy and Chris can claim on their Year 1 joint income tax return
Answer: $1,000
Explanation:
Even though Megna and Britt are above the age of 17 and as such do not qualify for the child tax credit, they qualify for the Credit for Other Dependants.
Under this Credit, $500 can be deducted per dependant if certain conditions are fulfilled such as the dependents having a valid American identity number such as ATIN, ITIN, or SSN.
The dependants have to be your children or elderly parents.
With $500 in credit available per dependant and Sandy and Chris having 2 dependants in Megna and Britt, they can get a credit of $1,000 for the both of them.
An insurance company faces an ethical dilemma. A faulty computer program designed to evaluate insurance claims has been denying a high number of valid claims. A meeting has been arranged where senior management would decide how to handle the situation. The people at the table have varying views of what action to take and why.Han wants to report the error and reimburse the affected customers immediately because he believes he could end up being fired if the company's reputation suffers because of the issue. Jamila wants to report the error because it is the honest thing to do, and therefore necessary.After hearing his colleagues' opinions, Keith says he is willing to do whatever the more experienced managers in the group recommend.Several other managers believe the company should correct the problem going forward but not do anything about the customers who lost out on past payments.Assume the meeting ends with the managers deciding not to do anything about the customers who are owed money for past claims. Lori, an employee who was present in the meeting, disagrees with the decision and gives an anonymous tip to a newspaper reporter about the unethical behavior. Which of the following best describes the action taken by Lori?A) Unethical stanceB) WhistleblowingC) ShadowingD) RelativismE) Ethnocentrism
Answer: B) Whistleblowing
Explanation:
Whistleblowing is an act where someone in a company discloses unethical practices usually from the entity that they work in. It is a very risky thing to do because it could signal the end of one's career in a certain industry.
Whistleblowing however helps in contributing to entities staying ethical because they'd rather avoid the bad publicity that comes with it and this is why most companies have a whistleblowing policy to make it easier for people to come forward.
Whistleblowing can be done to the Government, the press or even the entity at fault itself.
Lori by giving an anonymous tip to the press about unethical behavior has engaged in Whistleblowing.
Examples of some well known Whistleblowers include, Edward Snowden and Chelsea Manning.
Find the value of C, which makes the following two cash flow series equivalent. Assume that the market interest rate is 6% per year. Note: There are multiple approaches to solving this problem so be sure to consider the computational efficiencies of each approach before starting! $400 $400 $400 $400 $400 $125 $125 0 1 2 3 4 5 6 7 o 1 2 3 4 5 6 7 -$250 $250 $250
Answer:
Find attached complete question.
$ 750.10
Explanation:
In order to ascertain the value of C ,we need to equate the present value of the two streams of cash flows to each other as follows:
first stream:
$400/(1+6%)^1+$400/(1+6%)^2+$125/(1+6%)^3+$400/(1+6%)^4+$400/(1+6%)^5+$125/(1+6%)^6+$400/(1+6%)^7=$1,808.19
Second stream:
C/(1+6%)^1+C/(1+6%)^2-$250/(1+6%)^3-$250/(1+6%)^4-$250/(1+6%)^5+C/(1+6%)^6+C/(1+6%)^7
-$250/(1+6%)^3-$250/(1+6%)^4-$250/(1+6%)^5=-$594.74
C/(1+6%)^1+C/(1+6%)^2+C/(1+6%)^6+C/(1+6%)^7=C/0.9434+C/0.8900+C/ 0.7050+C/ 0.6651
simplification
C/0.9434+C/0.8900+C/ 0.7050+C/ 0.6651=C/(0.9434+0.8900+0.7050+0.6651)= 0.31216C
All in all:
$1,808.19 =-$594.74+ 0.31216C
$1,808.19+$594.74= 0.31216C
$2402.93 = 0.31216C
C=$2402.93* 0.31216 =$ 750.10
The residents of Alaska and people throughout the world were outraged when the Exxon Valdez crashed into a shoal and dumped millions of gallons of crude oil into the pristine waters of Prince William Sound. People were upset with Exxon's response to the disaster. The company was slow to admit its mistake and even slower to implement cleanup activities. Exxon was criticized for acting in a manner that would benefit the organization but not society. In short, Exxon did not demonstrate:___________.
1. Social responsibility
2. Value conciousness
3. Gray marketing
4. Profit responsibility
5. Transactional marketing
Answer:
1. Social responsibility.
Explanation:
Social responsibility is an ethical principle or business practice that supports, that individuals or business entities are required to fulfil civic duties, such as welfare, charity, etc. for the benefit of the society at large.
Simply stated, it incorporates sustainable societal development into business models. A company's social responsibility involves the process of creating a balance between economic growth, societal welfare and largely it's environment.
In this scenario, Exxon was slow to own up to it's error and even slower in implementing cleanup activities of the pristine waters of Prince William Sound. Sequel to this, it was criticized by the residents of Alaska and others around the world for acting in a manner that would benefit the organization but not society.
Hence, Exxon did not demonstrate social responsibility.
You are considering buying common stock in Grow On, Inc. The firm yesterday paid a dividend of $7.80. You have projected that dividends will grow at a rate of 9.0% per year indefinitely. If you want an annual return of 24.0%, what is the most you should pay for the stock now
Answer:
The answer is $56.68
Explanation:
Solution
We recall that:
The firm paid a dividend of =$7.80
The projected growth of dividends is at a rate = 9.0%
The annual return = 24.0%
Now,
V = ($7.80 * (1.09)/(.24 - 0.9)
= (8.502)/(.24-0.9)
= (8.502) * (-0.66)
= $56.68
Therefore, this would be the most we would pay for the stock. If we paid less than that, our return would be above the 24%.
Process Costing using the Weighted-Average Method
Compute the equivalent units of production using the weighted-average method.
Compute the cost per equivalent unit using the weighted-average method.
Assign costs to units using the weighted-average method.
Prepare a cost reconciliation report
Hayword, Inc. uses weighted-average costing and ha two departments mixing and packaging 2 The following information relates to work in the mixing department for the month of July: 4 Work in process, July 1: 5 Units in process 6 Percent completed with respect to materials 7 Percent completed with respect to conversion 8 Cost in the beginning inventory: 9 Materials cost 10Conversion cost 11 Units started into production during the period 12 Costs added to production during the period: 13 Materials cost 14 Conversion cost 15 Work in process, July 31: 16Units in process 17 Percent completed with respect to materials 18 Percent completed with respect to conversion 19 20 Use the data to answer the following 21 221. Compute equivalent units 300 60% 40% $10,500 $6,750 6,200 332,150 407,645 450 40% 30%
Answer:
First we find the equivalent units. Then Cost Per Equivalent Units. We apply these costs to the units to find the total cost. Then we compare the given costs with the found costs to see the difference.
Explanation:
Equivalent Units
Particulars Units % of Completion Equivalent Units
Materials Conversion Materials Conversion
Units transfered 6050 100 1000 6050 6050
Ending WIP 450 40 30 180 135
Equivalent Units 6230 6185
Units Completed And Transferred
Particulars Units
Beginning WIP 300
Units started in production 6200
Total Units Available 6500
Less Ending WIP 450
Units Completed and Transferred 6050
Cost Per Equivalent Unit
Particulars Materials Conversion
Beginning WIP $10,500 $6,750
Costs added 332,150 407,645
Total Costs 342,650 414,395
Equivalent Units 6230 6185
Cost Per Equivalent Unit 342,650 / 6230 414,395/ 6185
=$ 55 =$ 67
Costs Assigned
Ending WIP $ 18945
Materials ( 180 * 55) = $ 9900
Conversion ( 135 * 67) = $ 9045
Units Completed And Transferred Out : $ 738100
Materials ( 6050 *55) = $ 332750
Conversion ( 6050 * 67) = $ 405350
Cost Reconciliation
Cost to be accounted for
Beginning WIP ( $10,500 + $6,750 )= $ 17250
Cost added ( 332,150+ 407,645)= $ 739795
Total Costs $ 757045
Ending WIP $ 18945
Units Completed And Transferred Out : $ 738100
Total Costs $ 757045
Which is the same.
