If current assets equal current liabilities and other things are held constant, the factor that will not affect the quick ratio is: changes in long-term liabilities.
The quick ratio is calculated as follows:
Quick Ratio = (Current Assets - Inventory) / Current Liabilities
Since current assets equal current liabilities, any changes in long-term liabilities will not affect the quick ratio because long-term liabilities are not part of the quick ratio formula. The quick ratio focuses on the company's short-term liquidity and its ability to meet short-term obligations without relying on the sale of inventory.
Quick Ratio, also known as Acid-Test Ratio, is a financial metric that measures a company's ability to pay its current liabilities using its most liquid assets. It excludes inventory from current assets as it is not easily convertible to cash. A higher quick ratio indicates that a company can meet its short-term obligations without having to sell inventory.
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fifty percent of the firms employees must sign authorization cards before the national labor relations board will conduct a union cerfitication election
It seems that for a union certification election to take place, at least fifty percent of the employees in the firm must sign authorization cards.
This means that the employees are indicating their support for the union and their desire to be represented by the union in collective bargaining with the employer. Once the required number of authorization cards are collected and verified, the National Labor Relations Board (NLRB) will conduct a union certification election.
The National Labor Relations Board (NLRB) is an independent federal agency in the United States that is responsible for enforcing and interpreting labor laws related to collective bargaining and the rights of employees to engage in protected concerted activity.
It was established by the National Labor Relations Act of 1935, also known as the Wagner Act, which guarantees workers the right to form and join unions, to engage in collective bargaining, and to participate in other concerted activities for the purpose of collective bargaining or other mutual aid or protection.
The NLRB also investigates and remedies unfair labor practices by employers and unions, conducts elections to determine whether employees want union representation, and oversees the process of certifying unions as collective bargaining representatives.
During this election, all eligible employees will have the opportunity to vote on whether they want the union to represent them in negotiations with the employer. It's important to note that this process is governed by federal labor laws and regulations, and both the employer and the union must adhere to these laws throughout the certification process.
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2. Muscat Industry workers produce. The three basic processes of garment production are cutting, sewing and pressing. According to the Labour department there are 4 sewing operator, 6 cutting operators and 8 pressing operators. The Standard rate per hour for operators is OMR 6, Normal rate per unit is OMR 1.5, Working hours per day are 8 hours. Standard Output per hour is 80 units. Five workers Khalid, Rashid, Ahmed, Khamis and Nasir were engaged in the Sewing work and receives earnings by using Merrick Differential Piece Rate System. The Output is as follows Khalid 200 units, Rashid 500 units, Ahmed 850 units, Khamis 640 units and Nasir 1,000 units. You are required to calculate the earnings of all the five workers of sewing operators and also identify which of the workers' performance is less than 83% among all. [3 Marks] Answer:
Muscat Industry workers produce we must divide the overhead expenses for each overhead costs department by the corresponding direct labour hours in order to arrive at the factory overhead rates for the two production departments.
Pattern Department Overhead Rate: $294,000 divided by 42,000 hours of direct labour (dlh) is $7 per dlh.
$560,000/56,000 direct labour hours equals $10 per direct labour hour (dlh) for the Cut and Sew Department overhead rate $7 per dlh for the pattern department Department of Cut and Sew: $10 per.
We will now calculate the factory overhead per unit for each product using these rates.
Little Glove: Pattern Department: 2.10 dollars ($0.30 dlh x $7/dlh)
Cut and Sew Department: $4.00 ($0.40 dlh x $10/dlh).
$2.10 + $4.00 = $6.10 in total factory overhead per unit.
Large Glove:
Cut and Sew Department: 0.55 dlh * $10 per dlh = 5.50 Pattern Department: 0.20 dlh * $7 per dlh = $1,40
Total manufacturing costs per unit: $1.40 plus $5.50 equals $6.90
Cut and Sew: 0.70 dlh * $10 per dlh = $7.00 Pattern Department: 0.45 dlh * $7 per dlh = $3.15
$3.15 plus $7.00 equals $10.15 in total factory overhead per item. As a result, each product's factory overhead per unit is as follows.
Medium Glove: $6.90 Small Glove: $6.10
GIlove, large: $10.15.
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Question 2 of 7 - / 14.5 iii View Policies Current Attempt in Progress Paula Boothe, president of the Sheffield Corporation, has mandated a minimum 9% return on investment for any project undertaken by the company. Given the company's decentralization, Paula leaves all investment decisions to the divisional managers as long as they anticipate a minimum rate of return of at least 11%. The Energy Drinks division, under the direction of manager Martin Koch, has achieved a 17% return on investment for the past three years. This year is not expected to be different from the past three. Koch has just received a proposal to invest $3,000,000 in a new line of energy drinks that is expected to generate $390,000 in operating income. (a) Calculate the return on investment expected on the new line of energy drinks. (Round answer to 1 decimal place, e.g. 5.1%.) % Return on Investment e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer
ROI, or return on investment, is a key financial metric used to evaluate the profitability of an investment. In this scenario, Paula Boothe, the president of the Sheffield Corporation, has mandated a minimum 9% ROI for any project undertaken by the company. However, divisional managers are given autonomy to make investment decisions as long as they anticipate a minimum rate of return of at least 11%.
The Energy Drinks division, led by manager Martin Koch, has consistently achieved a 17% ROI for the past three years. This year is expected to be no different. Koch has received a proposal to invest $3,000,000 in a new line of energy drinks that is expected to generate $390,000 in operating income.
To calculate the expected ROI for this new investment, we divide the expected operating income ($390,000) by the investment amount ($3,000,000) and multiply by 100 to get a percentage. Therefore, the expected ROI for the new line of energy drinks is 13% (rounded to one decimal place).
Since the expected ROI of 13% is above the company's mandated minimum ROI of 9% and the divisional minimum ROI of 11%, it would be a viable investment for the Energy Drinks division. This decision, however, should also consider other factors such as market demand, competition, and potential risks.
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delta company sells bells to customers for $1 each. the variable cost to manufacture the bells is 10 cents. if the rattle department, a division of the delta company, wants to use the bells in its new line of rattles, which of the following transfer prices can be used if there is excess capacity? (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.) check all that apply $0.05 $0.11 $0.95 $1.50 $2.00
The transfer price should be greater than or equal to the variable cost of producing the bells, which is 10 cents or $0.10 per bell. Any transfer price less than this would result in a loss for the company.
Since the Rattle Department has excess capacity, it is not necessary to consider the opportunity cost of using the bells in the production of rattles.
Therefore, the transfer price can be set equal to or slightly above the variable cost of production.
The transfer prices that satisfy these conditions are:
- $0.10 or greater (equal to or greater than the variable cost)
- $0.11 (slightly above the variable cost)
Therefore, the transfer prices that can be used if there is excess capacity are:
- $0.10
- $0.11
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Solve the problem that involves probabilities with events that are not mutually exclusive. In a class of 50 students, 33 are Democrats, 9 are business majors, and 4 of the business majors are Democrats. If one student is randomly selected from the class, find the probability of choosing a Democrat or a business major.
A. 23/25
B. 1/10
C. 21/25
D. 19/25
We know that there are 33 Democrats in the class and 9 business majors, but we also know that 4 of the business majors are Democrats. The answer is D. 19/25.
To solve this problem, we need to use the formula:
P(D or B) = P(D) + P(B) - P(D and B)
where P(D) is the probability of choosing a Democrat, P(B) is the probability of choosing a business major, and P(D and B) is the probability of choosing a student who is both a Democrat and a business major.
This means that there are 29 students who are either Democrats or business majors (33 Democrats - 4 who are both + 9 business majors = 38 - 9 = 29). So the probability of choosing a Democrat or a business major is:
P(D or B) = 33/50 + 9/50 - 4/50
P(D or B) = 38/50 - 4/50
P(D or B) = 34/50
P(D or B) = 17/25
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which of the following statements are true? multiple select question. assets like accounts receivable, inventory, equipment, buildings, land may be pledged as collateral for business loans. restrictive covenants are used to require executives to pledge personal assets as collateral for business loans. executives of major corporations are more likely to be asked to pledge personal assets as collateral than are owners of small businesses. creditors may demand executives to pledge personal assets as well as business assets as security for loans.
The correct statements are assets like accounts receivable, inventory, equipment, buildings, land may be pledged as collateral for business loans and creditors may demand executives to pledge personal assets as well as business assets as security for loans. Option A and D is correct.
A is true because assets like accounts receivable, inventory, equipment, buildings, and land are commonly used as collateral for business loans.
B is false because restrictive covenants are used to impose certain restrictions on borrowers, such as limiting the borrower's ability to incur additional debt or to sell certain assets. They do not require executives to pledge personal assets as collateral for business loans.
C is false because executives of major corporations are less likely to be asked to pledge personal assets as collateral than owners of small businesses. Lenders are more likely to rely on the creditworthiness of a large corporation rather than the personal assets of an executive.
D is true because creditors may demand both business and personal assets as security for loans, especially if the borrower's creditworthiness is in question or if the loan amount is large.
Therefore, option A and D are correct.
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What is the main purpose of search engine marketing (SEM)?
The main purpose of search engine marketing (SEM) is to increase visibility and drive traffic to a website through paid advertising.
SEM involves utilizing various tactics such as keyword research, ad copy creation, and bid management to create targeted ads that appear on search engine results pages (SERPs) for specific keywords or phrases.
The primary goal of SEM is to attract potential customers who are actively searching for products or services related to the business being advertised. By bidding on targeted keywords, businesses can ensure that their ads appear at the top of search results pages, increasing the likelihood of clicks and conversions.
The success of SEM campaigns is measured through metrics such as click-through rates, conversion rates, and return on investment (ROI). Overall, the main purpose of SEM is to increase online visibility, drive traffic, and ultimately generate more revenue for businesses through targeted advertising on search engines.
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If a firm is looking to establish and develop a personal relationship with its customers, the single most effective approach it can use is _______.
If a firm is looking to establish and develop a personal relationship with its customers, the single most effective approach it can use is to focus on providing excellent customer service.
This means going above and beyond to meet the needs and expectations of customers, responding promptly to inquiries and complaints, and taking proactive steps to address any issues or concerns that may arise.
Additionally, firms can also invest in loyalty programs, personalized marketing campaigns, and other strategies that demonstrate their commitment to building strong, long-lasting relationships with their customers.
Ultimately, the key to success in this area is to prioritize customer satisfaction and to consistently deliver exceptional experiences that leave customers feeling valued and appreciated.
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Answer:personal
Explanation: selling
The ____ structure inevitably creates work duplication, which makes it more difficult to realize the economies of scale that result from grouping functions together.
The functional structure inevitably creates work duplication, which makes it more difficult to realize the economies of scale that result from grouping functions together.
The "silo" structure, where each department or function operates independently with little communication or collaboration with other departments, creates a significant amount of work duplication. This is because each department may have its own processes, systems, and procedures, which may not be compatible with those of other departments.
As a result, information may need to be entered into multiple systems, processes may need to be repeated, and there may be a lack of standardization across the organization. This duplication of work can be time-consuming, expensive, and can hinder the organization's ability to realize economies of scale by grouping functions together.
Instead, the organization should consider a more integrated and collaborative structure that allows for better communication and sharing of resources.
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Suppose the local real estate market is in equilibrium. A recession causes local household incomes to decline. At the same time, construction of a large subdivision of new homes has just been completed. Given these two changes, we can predict the price of real estate will _____ and the quantity of real estate bought and sold will _____. A) fall; fall. B) fall; rise. C) fall; rise or fall. D) rise; fall or rise
A recession and the completion of a new subdivision will cause a decrease in real estate prices and quantity bought and sold, resulting in a likely outcome of a fall in both. Therefore, option A, "fall; fall," is the most likely outcome.
The recession will cause local household incomes to decline, leading to a decrease in demand for real estate. This decrease in demand will put downward pressure on prices.
Additionally, with the completion of a large subdivision of new homes, the supply of real estate on the market will increase, putting further downward pressure on prices.
However, it is possible that the quantity of real estate bought and sold may not necessarily fall. The lower prices may attract some buyers who were previously unable to afford a home in the area, leading to an increase in the quantity of real estate bought and sold.
On the other hand, the decrease in demand may in recession also lead to a decrease in the quantity of real estate bought and sold.
Overall, the combination of these two changes will likely result in a decrease in the price of real estate, and the quantity of real estate bought and sold may either fall or rise.
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Customers prefer to do business with companies they trust, proving the old saying that ______ is the best policy
"honesty is the best policy" is the old saying that is proved by customers' preference to do business with companies they trust.
This means that customers value transparency, reliability, and integrity in the companies they choose to do business with. Companies that are honest in their dealings with customers, provide high-quality products and services, and uphold ethical standards are more likely to build trust and earn customer loyalty.
Honesty and transparency in business practices help to establish a positive reputation, build long-term relationships with customers, and ultimately contribute to the success and growth of a business.
Trust is an important factor in building and maintaining relationships with customers. It is the foundation of customer loyalty, and it can have a significant impact on a company's bottom line. Customers are more likely to do business with companies that they trust, and they are more likely to recommend those companies to others.
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You are preparing to produce some goods for sale. You will sell them in one year and you will incur costs of $82,000 immediately. If your cost of capital is 7.3%, what is the minimum dollar amount you need to sell the goods for in order for this to be a non-negative NPV? The minimum dollar amount is $. (Round to the nearest dollar.)
The minimum dollar amount needed to achieve a non-negative NPV is $87,948. Rounded to the nearest dollar, the answer is $87,948.
To calculate the minimum dollar amount needed to achieve a non-negative NPV, we need to use the formula:
NPV = -Costs + (Cash Flows / (1 + Cost of Capital)^t)
Where t is the time period, which in this case is one year.
Since we know the costs are $82,000 and the time period is one year, we can rearrange the formula to solve for the cash flows needed to achieve a non-negative NPV:
Cash Flows = (NPV + Costs) x (1 + Cost of Capital)^t
Setting NPV equal to zero, since we want to achieve a non-negative NPV, we get:
Cash Flows = (0 + $82,000) x (1 + 0.073)^1
Cash Flows = $87,947.51
Therefore, the minimum dollar amount needed to achieve a non-negative NPV is $87,948. Rounded to the nearest dollar, the answer is $87,948.
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Today, U. S. Box office ticket prices are on average $8. 25 with standard deviation approximately $2. 0. The distribution appears to be normal. Mu Sigma $8. 25 $2. 00 Required:
a) What’s the probability a ticket will cost less than $9?
b) What’s the probability a ticket will cost more than $12. 50?
c) What’s the probability that the ticket price is between $6. 50 and $7. 50?
d) The top 15 percent of tickets cost more than k dollars. Find k
In the U.S. Box office, the average ticket price is $8.25 with a standard deviation of $2.00. Assuming a normal distribution, we can calculate the probabilities of different ticket prices.
a) To find the probability that a ticket will cost less than $9, we need to standardize the value of $9 with the mean and standard deviation given:
z = (9 - 8.25) / 2 = 0.375
We can then look up the probability of a standard normal distribution less than z using a z-table or a calculator, which is approximately 0.6497 or 64.97%. Therefore, the probability that a ticket will cost less than $9 is approximately 64.97%.
b) To find the probability that a ticket will cost more than $12.50, we need to standardize the value of $12.50 with the mean and standard deviation given:
z = (12.50 - 8.25) / 2 = 2.125
Again, we can look up the probability of a standard normal distribution more than z, which is approximately 0.0162 or 1.62%. Therefore, the probability that a ticket will cost more than $12.50 is approximately 1.62%.
c) To find the probability that the ticket price is between $6.50 and $7.50, we need to standardize both values with the mean and standard deviation given:
z1 = (6.50 - 8.25) / 2 = -0.875
z2 = (7.50 - 8.25) / 2 = -0.375
Then, we can find the area between these two z-scores using a z-table or a calculator. This probability is approximately 0.1613 or 16.13%. Therefore, the probability that the ticket price is between $6.50 and $7.50 is approximately 16.13%.
d) To find the value of k such that the top 15% of tickets cost more than k dollars, we need to find the z-score that corresponds to the top 15% of the standard normal distribution.
Using a z-table or a calculator, we can find that the z-score for the top 15% of the distribution is approximately 1.04.
Then, we can solve for k using the formula:
k = mean + (z * standard deviation) = 8.25 + (1.04 * 2) = 10.33
Therefore, the top 15% of tickets cost more than approximately $10.33.
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When the iPad Mini came out, Yvonne spent the night in front of the store so she could get one before any of her friends. According to the diffusion of innovation, Yvonne is an innovator. True/False
The given statement is True. According to the diffusion of innovation theory, innovators are the first individuals to adopt a new product or technology such as IPAD store.
Innovation refers to the process that leads to the formation of new ideas that has been been invented before. It refers to the fresh ideas that helps in attracting people inn terms of business. Idea generation helps in new development and thereby helps in the progress. The introduction of the idea from the existing resources helps in the formation of new ideas that take the shape of innovation.
Yvonne's behavior of spending the night in front of the store to be one of the first to get the iPad Mini aligns with the characteristics of an innovator.
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ASG Inc. leased equipment from CIA Inc. on January 1 2020. As per the agreement, the right of ownership will be transferred to the lessee at the end of the contract. CIA Inc manufactured the equipment at the cost of $600,000. The selling price of the equipment is $900,000. Other Information available regarding the contract are given below Lease Term 5 Years Useful life of the Asset 6 Years Annual payment Starting from January 1, 2020, at the beginning of every year Rate the lessor charges 8% You are required to 1. Calculate the minimum lease payment (Round to nearest dollar) 2. Prepare the amortization schedule (Round to nearest dollar) 3. Write journal entries in the books for both lessor and lessee for January 1 2020, and December 31, 2020. Round to nearest dollar.
An amortization schedule that would be suitable for the lessee for the lease term is as follows-
Leasing
The lease payment's PV is as follows:
Lease Payment 113864
Number of periods: 6
Periodic interest rate: 8.00%
PV annuity due factor at 8% for 6 years 4.99271
Lease payment
= 113864 *is PV factor for the annuity fee. 568490
PV of the $5000 PV factor's residual value
8% for six years, which equals 0.630170 3151
PV of minimum lease payments 571641
The following formula can be used to calculate the lease amortization schedule:
Lease Interest Expense (B) Reduction
Liability (C) liability (D) interest rate =D
= (A) - (B) =(D) - (C)
Date Lease Payment (A)
01-01-2020 571641
01-01-2020 113864.00 113864 457777
01-01-2021 113864.00 36622 77242 380535
01-01-2022 113864.00 30443 83421 297114
01-01-2023 113864.00 23769 90095 207019
01-01-2024 113864.00 16562 97302 109716
01-01-2025 113864.00 8777 105087 4630
31-01-2025 5000.00 370 4630 0
Journal Entries - In books of lessee
01-01-2020 Asset 571641
Lease Liability 571641
(To document a responsibility
The Lease Liability Number is 113864.
Cash 113864
(To keep track of lease payments)
December 31, 2020 Interest costs 36622.
Lease Liability 36622
(To document accumulated interest)
Charge for Amortisation 94440
Right-to-Use Asset 94440
To document Amortisation Cost
(581641 - 5000/6)
January 1, 2021 Interest Due as of: 36622
Lease Liability 77242
Cash 113864
a lease payment record
December 31, 2021, interest expenses 30443.
Interest Due 30443
(To document accumulated interest)
Charge for Amortisation 94440
Right-to-Use asset 94440
Amortisation will be noted.
(571641 - 5000/6) is the cost.
assuming Vance got a $5,000 leasing incentive;
Initial lease liability calculation: $571641 - $5000
= $566641
The remaining lease liability will be $571641
if Vance pays Faldo $5000 in advance rent;
The asset's right to use rose by $5,000, or $571,641 plus $5,000.
= $576641
Since the lease liability is unchanged, the following results: $512691
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Complete question:
The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Vance Company, a lessee.
Commencement date January 1, 2020
Annual lease payment due at the beginning of each year, 113,864
beginning with January 1, 2020$
Residual value of equipment at end of lease term, $50,000
guaranteed by the lessee
Expected residual value of equipment at end of lease term $45,000
Lease term 6 years
Economic life of leased equipment 6 years
Fair value of asset at January 1, 2020 $600,000
Lessor's implicit rate 8%
Lessee's incremental borrowing rate 8%
The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment.
Instructions
a. Prepare an amortization schedule that would be suitable for the lessee for the lease term.
b. Prepare all of the journal entries for the lessee for 2020 and 2021 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee's annual accounting period ends on December 31.
c. Suppose Vance received a lease incentive of $5,000 from Faldo Leasing to enter the lease. How would the initial measurement of the lease liability and right-of-use asset be affected? What if Vance prepaid rent of $5,000 to Faldo?
general investment co. (gic) purchased bonds on january 1, 2021. gic's accountant has projected the following amortization schedule from purchase until maturity: date cash received interest revenue amortization of discount amortized cost 1/1/2021 $ 194,758 6/30/2021 $ 7,000 $ 7,790 $ 790 195,548 12/31/2021 7,000 7,822 822 196,370 6/30/2022 7,000 7,855 855 197,225 12/31/2022 7,000 7,889 889 198,114 6/30/2023 7,000 7,925 925 199,039 12/31/2023 7,000 7,961 961 200,000 gic purchased the bonds: 1. at a discount. 2. cannot be determined from the given information. 3. at a premium. 4. at par.
GIC purchased the bonds at a discount rate.
The amortization schedule shows an increase in the amortized cost over time, as the discount is being amortized (added) to the bond's cost. This indicates that the bonds were originally purchased at a price below their par value, which is known as purchasing at a discount.
When a bond is purchased at a price lower than its face value, it is said to be purchased at a discount. This means that the bond's market interest rate is higher than its coupon rate, and investors are willing to pay less to compensate for the lower coupon payments.
GIC, or the Global Investment Corporation, has purchased such discounted bonds. The amortization schedule is a table that outlines the payments made on a bond over its life, including interest payments and the amortization of any discount or premium on the bond.
In the case of GIC's bond purchase, the discount is amortized over the life of the bond, resulting in an increase in the bond's amortized cost over time. This is known as positive amortization, where the bond's carrying value is gradually increasing until it reaches its face value at maturity.
The amortization schedule provides a breakdown of the bond's payments, including the amount of interest paid, the reduction of the discount, and the increase in the amortized cost. By analyzing the schedule, GIC can determine the amount of discount it received when purchasing the bond and the total return it will earn over the life of the investment.
In summary, GIC purchased bonds at a discount, which is reflected in the bond's amortization schedule as positive amortization over time. By analyzing the schedule, GIC can determine the amount of discount received and the total return earned from the investment.
So, therefore, GIC purchased the bonds at a discount.
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An organization's __________ is composed of the key individuals who are responsible for selecting and implementing the firm's strategies.
a.governance circle
b.top management team
c.keiretsu
d.board of directors
An organization's top management team (TMT) is composed of the key individuals who are responsible for selecting and implementing the firm's strategies. The correct option is b. top management team.
The TMT is typically comprised of the CEO, COO, CFO, and other senior executives who hold decision-making authority within the organization. They are responsible for identifying the organization's strategic objectives, developing plans to achieve those objectives, and ensuring that those plans are effectively executed.
The TMT is crucial to an organization's success, as they are responsible for creating and implementing the firm's strategic vision. They are also responsible for managing the day-to-day operations of the company, ensuring that the organization is operating efficiently and effectively. The TMT is also responsible for setting the tone at the top of the organization, establishing a culture of excellence and accountability that permeates throughout the company.
Overall, the TMT is critical to an organization's success, as they are responsible for driving the strategic direction of the company and ensuring that it is effectively executed. As such, it is important for organizations to carefully select and develop their TMT, ensuring that they have the necessary skills and experience to lead the company to success. The correct option is b. top management team.
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Walmart's management has asked you to calculate their weighted average cost of capital. Their CFO tells you that they currently have 45% of their financing from debt, 10% from preferred stock and 45% from common equity. However, they have a target of 40% from debt, 5% from preferred stock and the remainder from common equity. The CFO says that the last time they issued bonds, the cost was 5.2%. They have some existing 20 year bonds that have a coupon rate of 3.4%, are non-callable and pay semi-annual payments. These cost $1,023. They also have some 5 years bonds that have a coupon rate of 2.7%, are non-callable and pay semi-annual payments. These cost $1,076. And they have some 20 year bonds that have a coupon rate of 3.6%, that are callable and pay semi-annual payments. These cost $1,010. Walmart's previous tax rate was 23% but they expect that in the future the tax rate will be 24.4%. They have preferred stock that has a par value of $100. The dividend rate is 6.3% and the cost is $154.23 per share. The flotation cost of the preferred stock is 3%. Walmart's stock price is $142.60 per share. They pay an annual dividend of $2.24 which is expected to grow at a constant rate of 3.5% a year. The stock has a Beta of 53. The market risk premium is 5.7% and the risk free rate is 25% (that is one quarter of one percent). Walmart's management considers their stock to have a risk premium above their bonds of 1.5%."What is Walmart's cost of common equity using the DCF method?A. 3.50%B. 3.87%C. 4.15%D. 5.13%
Based on the given options, the closest answer to Walmart's cost of common equity using the DCF method is: D. 5.13%. Therefore, correct option is D.
How to calculate Cost of common equity? The cost of common equity using the DCF method can be calculated using the following formula:
Cost of Common Equity = (Dividend / Current Stock Price) + Growth Rate
Where:
- Dividend = Annual dividend per share
- Current Stock Price = Walmart's current stock price
- Growth Rate = Expected constant growth rate of dividends
Plugging in the given values, we get:
- Dividend = $2.24
- Current Stock Price = $142.60
- Growth Rate = 3.5%
Cost of Common Equity = ($2.24 / $142.60) + 3.5%
Cost of Common Equity = 0.0157 + 0.035
Cost of Common Equity = 0.0507 or 5.07%
Based on the given options, the closest answer to Walmart's cost of common equity using the DCF method is: D. 5.13%. Therefore, the answer is D. 5.13%.
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Data Table January February March Unit data: Beginning inventory Production 150 150 1,500 1,520 1,400 1,400 Sales 1,350 1,530 1,000 A 1,000 $ 800 $ 1,000 $ 800 $ ES 800 Variable costs: Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs: Manufacturing costs Operating (marketing) costs $ $ 525,000 $ 130,000 $ 525,000 $ 130,000 $ 525,000 130,000 A Requirements 1. Prepare income statements for EntertainMe in January, February, and March 2017 under (a) variable costing and (b) absorption costing. 2. Explain the difference in operating income for January, February, and March under variable costing and absorption costing. Print Done EntertainMe Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2017 are as follows: The selling price per unit is $3,300. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,500 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs. Read the requirements. B (Click to view the data. ) Requirement 1. Prepare income statements for EntertainMe in January, February, and March 2017 under (a) variable costing and (b) absorption costing. (a). Prepare income statements for EntertainMe in January, February, and March of 2017 under variable costing. Complete the top half of the income statement for each month first, then complete the bottom portion. (Complete all answer boxes. Enter a "0" for any zero balance accounts. ) January 2017 February 2017 March 2017 (b). Prepare income statements for EntertainMe in January, February, and March 2017 under absorption costing. Complete the top half of the income statement for each month first, then complete the bottom portion. (Enter a "0" for any zero balance accounts. Label any variances as favorable (F) or unfavorable (U). If an account does not have a variance, do not select a label. Abbreviation used; Adj. = Adjustment, Mfg. = Manufacturing. ) January 2017 February 2017 March 2017 Requirement 2. Explain the difference in operating income for January, February, and March under variable costing and absorption costing. Begin by preparing a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing. Determine the formula that will highlight the difference between the operating income under each method. Then complete the equation for each month. (Enter an amount in each input cell and enter a "0" for any zero balances. Abbreviations used: Beg. = beginning, End. = ending, Mfg. = Manufacturing, and Var. = Variable. ) Absorption-costing operating income Variable-costing - operating income = Jan Feb Mar The difference between absorption and variable costing is due solely to moving into inventories as inventories and out of inventories as they
(a) Income statements for EntertainMe in January, February, and March of 2017 under variable costing:
January 2017
Sales: 1,350 units x $3,300 per unit = $4,455,000
Variable costs:
Beginning inventory: 150 units x $1,500 = $225,000
Manufacturing cost of goods produced: 1,520 units x $525 = $798,000
Total variable costs: $1,023,000
Contribution margin: $4,455,000 - $1,023,000 = $3,432,000
Fixed costs:
Manufacturing costs: $525,000
Operating costs: $130,000
Total fixed costs: $655,000
Operating income: $2,777,000
February 2017
Sales: 1,530 units x $3,300 per unit = $5,049,000
Variable costs:
Beginning inventory: 1,400 units x $1,500 = $2,100,000
Manufacturing cost of goods produced: (1,520 - 1,400) units x $525 = $63,000
Total variable costs: $2,163,000
Contribution margin: $5,049,000 - $2,163,000 = $2,886,000
Fixed costs:
Manufacturing costs: $525,000
Operating costs: $130,000
Total fixed costs: $655,000
Operating income: $2,231,000
March 2017
Sales: 1,000 units x $3,300 per unit = $3,300,000
Variable costs:
Beginning inventory: 1,400 units x $1,500 = $2,100,000
Manufacturing cost of goods produced: 1,400 units x $525 = $735,000
Total variable costs: $2,835,000
Contribution margin: $3,300,000 - $2,835,000 = $465,000
Fixed costs:
Manufacturing costs: $525,000
Operating costs: $130,000
Total fixed costs: $655,000
Operating income: ($190,000)
(b) Income statements for EntertainMe in January, February, and March of 2017 under absorption costing:
January 2017
Sales: 1,350 units x $3,300 per unit = $4,455,000
Cost of goods sold:
Beginning inventory: 150 units x $525 = $78,750
Manufacturing cost of goods produced: 1,520 units x $350 = $532,000
Goods available for sale: $610,750 + $532,000 = $1,142,750
Ending inventory: 1,520 units x $350 = $532,000
Cost of goods sold: $610,750
Gross margin: $3,844,250
Operating costs: $130,000
Operating income: $3,714,250
February 2017
Sales: 1,530 units x $3,300 per unit = $5,049,000
Cost of goods sold:
Beginning inventory: 1,400 units x $525 = $735,000
Manufacturing cost of goods produced: (1,520 - 1,400) units x $350 = $42,000
Goods available for sale: $777,000 + $42,000 = $819,000
Ending inventory: 1,400 units x $350 = $490,000
Cost of goods sold: $329,000 + $490,000 = $819,000
Gross margin
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Jack Carson transferred a building that had an adjusted basis of $75,000 and a fair market value of $130,000 to Corporation R in exchange for 80% of R’s only class of stock and a car with an adjusted basis to R of $25,000. The fair market value of the stock at the time of the transfer was $100,000, and the car’s fair market value was $30,000. What is the amount of R’s basis in the building?
The amount of Corporation R's basis in the building transferred by Jack Carson is $130,000.
To determine the amount of Corporation R's basis in the building transferred by Jack Carson, we must first calculate the total consideration paid by Corporation R for the transfer.
The total consideration paid by Corporation R includes the fair market value of the stock received by Jack Carson, which is $100,000, and the fair market value of the car received by Jack Carson, which is $30,000. Therefore, the total consideration paid by Corporation R is $130,000 ($100,000 + $30,000).
Next, we need to allocate the total consideration paid between the building and the car based on their respective fair market values.
The fair market value of the building transferred by Jack Carson is $130,000, and the fair market value of the car received by Jack Carson is $30,000. Therefore, the ratio of the building's fair market value to the total consideration paid by Corporation R is 130,000/130,000, which is 1.
This means that the entire amount of the consideration paid by Corporation R, which is $130,000, is allocated to the building transferred by Jack Carson.
Since the adjusted basis of the building transferred by Jack Carson is $75,000, the basis of Corporation R in the building will be equal to the total consideration paid for the building, which is $130,000. Therefore, the amount of Corporation R's basis in the building transferred by Jack Carson is $130,000.
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be19.5 (lo 1, 2) at december 31, 2020, suff olk corporation had an estimated warranty liability of $105,000 for accounting purposes and $0 for tax purposes. (the warranty costs are not deductible until paid.) the eff ective tax rate is 20%. compute the amount suff olk should report as a deferred tax asset at december 31, 2020.
The deferred tax asset related to the warranty liability can be calculated as follows:
Calculate the temporary difference between the accounting and tax bases of the warranty liability:
Warranty liability for accounting purposes = $105,000
Warranty liability for tax purposes = $0
Temporary difference = $105,000 - $0 = $105,000
Calculate the deferred tax asset:
Deferred tax asset = Temporary difference x Tax rate
Deferred tax asset = $105,000 x 20%
Deferred tax asset = $21,000
Therefore, Suffolk Corporation should report a deferred tax asset of $21,000 related to the warranty liability at December 31, 2020.
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24. A total prohibition against importing certain products is called a(n):
A total prohibition against importing certain products is called an "import ban."
An import ban is a restriction imposed by a country's government that prohibits the importation of certain goods or products, typically due to health, safety, or environmental concerns. It is a measure used by governments to protect their citizens from potential harm or danger posed by certain imported products. Import bans can also be used as a tool to protect domestic industries from foreign competition.
An import ban is a form of trade restriction that prohibits the importation of specific goods or products. It is usually imposed by a country's government for various reasons, such as concerns over public health, safety, or environmental protection. Import bans can also be used as a tool to protect domestic industries from foreign competition or to maintain national security.
Import bans can be implemented in various ways. They can be permanent or temporary, depending on the nature of the ban and the reasons for its implementation. They can also be partial or complete, prohibiting the importation of specific products or all products from a particular country.
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true or false,exploratory research collects quantitative data to answer research questions such as who, what, when, where, and how.
True or false: Exploratory research collects quantitative data to answer research questions such as who, what, when, where, and how.
Answer: False
Exploratory research is a type of research methodology that focuses on collecting qualitative data to gain a deeper understanding of a particular issue or problem.
It is often used in the initial stages of research when there is limited knowledge about a topic. The primary goal of exploratory research is to provide insights,
identify patterns, and generate hypotheses, rather than providing definitive answers to specific research questions like who, what, when, where, and how.
In contrast, quantitative research methods, such as surveys and experiments, are designed to collect numerical data and provide statistical evidence to answer these specific research questions.
Quantitative research aims to measure relationships between variables and make generalizations based on a large sample size.
To summarize, the statement that exploratory research collects quantitative data to answer research questions such as who, what, when, where, and how is false.
Exploratory research focuses on qualitative data to gain a deeper understanding of a topic, while quantitative research methods are used to provide definitive answers to specific research questions.
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1) What is cost behaviour and what are the five different types of
cost behaviour?
Cost behavior refers to how costs change as the volume of activity changes. Understanding cost behavior helps management make informed decisions regarding pricing, budgeting, and cost control. There are five primary types of cost behavior: Fixed costs, variable costs, Semi-variable costs, Step costs, and Mixed costs.
The five different types of cost behavior are as follows:
1. Fixed costs - These are costs that do not change with the level of activity. Examples of fixed costs include rent, insurance, and property taxes.
2. Variable costs - These are costs that change in proportion to the level of activity. Examples of variable costs include direct materials, direct labor, and sales commissions.
3. Semi-variable costs - These are costs that have both fixed and variable components. Examples of semi-variable costs include utilities, maintenance, and shipping costs.
4. Step costs - These are costs that are fixed for a certain level of activity but then increase in steps as activity increases. Examples of step costs include hiring additional staff or purchasing new equipment.
5. Mixed costs - These are costs that have both fixed and variable components but are not easily separable. Examples of mixed costs include telecommunications expenses or advertising costs.
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eva received $60,000 in compensation payments from jazz corporation during 2022. eva incurred $5,000 in business expenses relating to her work for jazz corporation jazz did not reimburse eva for any of these expenses. eva is single and deducts a standard deduction of $12,950. based on these facts, answer the following questions
Based on the given facts, Eva received $60,000 in compensation payments from Jazz Corporation in 2022. She incurred $5,000 in business expenses related to her work for Jazz Corporation, but Jazz did not reimburse her for any of these expenses.
Eva is single and deducts a standard deduction of $12,950.
1. Eva's taxable income for 2022 is:
Answer: To calculate Eva's taxable income for 2022, we need to deduct her standard deduction from her total income. So, Eva's taxable income for 2022 would be: $60,000 - $5,000 - $12,950 = $42,050.
2. Eva's federal income tax liability for 2022 is:
Answer: To calculate Eva's federal income tax liability for 2022, we need to use the IRS tax tables or tax calculator. Assuming she has no other deductions or credits, her federal income tax liability would be around $6,335.
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At the end of Players Corporation's fiscal year, its portfolio of FVTPL investments purchased during the year is as follows: Security Cost Market Value A Common shares $10,000 $12,000 B Common shares 8,000 5,000 $18,000 $17,000 At the end of the year, Players company normally would increase the investment accounts to market value. report a loss on the income statement for $3,000 under "Other expenses". make no entry. report a loss on the income statement for $1,000 under "Other expenses".
At the end of Players Corporation's fiscal year, the company should report a loss on the income statement for $1,000 under "Other expenses."
1. Compare the market value of each investment to its cost.
2. Calculate the difference for each investment (gain or loss).
- For security A: Market value ($12,000) - Cost ($10,000) = Gain of $2,000
- For security B: Market value ($5,000) - Cost ($8,000) = Loss of $3,000
3. Combine the gains and losses to determine the overall impact on the income statement.
- Gain on security A ($2,000) - Loss on security B ($3,000) = Net loss of $1,000
Therefore, Players Corporation should report a loss of $1,000 under "Other expenses" on its income statement.
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Suppose Microsoft has 7.35 billion shares outstanding and pays a marginal corporate tax rate of 33% Microsoft announces that it will pay out $52 billion in cash to Investors through a combination of a special dividend and a share repurchase, and it investors had previously assumed Microsoft would retain this excess cash permanently, by how much will Microsoft's share price change upon the announcement? The share price will change by $ per share. (Round to the nearest cont)
The share price of Microsoft will increase by $8.07 per share upon the announcement of the $52 billion cash payout to investors.
To calculate the change in Microsoft's share price upon the announcement of the $52 billion cash payout to investors, we need to consider the impact of both the special dividend and the share repurchase.
First, let's consider the special dividend. If Microsoft is paying out $52 billion in cash to investors, and assuming all outstanding shares will receive a portion of this payout, we can calculate the dividend per share as follows:
Dividend per share = Total cash payout / Number of outstanding shares
Dividend per share = $52 billion / 7.35 billion shares
Dividend per share = $7.07
So, each share of Microsoft will receive a special dividend of $7.07.
Next, let's consider the share repurchase. If Microsoft is using a portion of the $52 billion cash payout to repurchase shares, we need to calculate how many shares will be repurchased and the impact on the remaining outstanding shares.
Assuming the share repurchase is done at the current market price of Microsoft's shares, we can calculate the number of shares that will be repurchased as follows:
Number of shares repurchased = Cash used for share repurchase / Market price per share
Number of shares repurchased = $52 billion - ($7.07 x 7.35 billion shares) / Market price per share
Let's assume the current market price per share is $200. Plugging in the numbers, we get:
Number of shares repurchased = $52 billion - ($7.07 x 7.35 billion shares) / $200
Number of shares repurchased = 259.45 million shares
So, Microsoft will repurchase approximately 259.45 million shares at the current market price of $200 per share.
Now, let's calculate the impact on the remaining outstanding shares. After the share repurchase, the number of outstanding shares will be reduced by the number of shares repurchased:
Number of outstanding shares after share repurchase = Number of outstanding shares - Number of shares repurchased
Number of outstanding shares after share repurchase = 7.35 billion shares - 259.45 million shares
Number of outstanding shares after share repurchase = 7.09 billion shares
Finally, we can calculate the change in Microsoft's share price using the following formula:
Change in share price = (Dividend per share - (Marginal corporate tax rate x Dividend per share)) + ((Cash used for share repurchase / Number of outstanding shares after share repurchase) x (1 - Marginal corporate tax rate))
Plugging in the numbers, we get:
Change in share price = ($7.07 - (0.33 x $7.07)) + (($52 billion - ($7.07 x 259.45 million shares)) / 7.09 billion shares) x (1 - 0.33)
Change in share price = $4.73 + ($44.74 billion / 7.09 billion shares) x 0.67
Change in share price = $4.73 + $3.34
Change in share price = $8.07
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which of the following is not an example of a general principle or characteristic of nonverbal communication?
a. linguistic in nature
b. single channeled
c. less ambiguous than verbal communication
d. continuous
Linguistic in nature is not an example of a general principle or characteristic of nonverbal communication.
Nonverbal communication refers to the transmission of information without the use of words, and it typically involves facial expressions, gestures, body language, and tone of voice.
Here's an explanation of each option:
a. Linguistic in nature: This is not a characteristic of nonverbal communication because it involves language and words, while nonverbal communication does not rely on spoken or written language.
b. Single channeled: This could be considered a characteristic of nonverbal communication because it often focuses on one channel, such as facial expressions or body language, but can also involve multiple channels at once.
c. Less ambiguous than verbal communication: Nonverbal communication can sometimes be less ambiguous because it provides additional cues and context to the message being conveyed, helping to clarify the meaning.
d. Continuous: Nonverbal communication is often continuous as it takes place alongside verbal communication or even when no words are being exchanged, such as maintaining eye contact or using gestures.
In summary, the option "linguistic in nature" is not a general principle or characteristic of nonverbal communication because it pertains to language and words, whereas nonverbal communication does not rely on spoken or written language.
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how do Prepare a formal letter for chiefs approval ?
Preparing a formal letter for chief's approval requires attention to detail and professionalism. Here are some steps to follow:
1. Start by writing the letterhead with your organization's logo, address, and contact information.
2. Write the date below the letterhead.
3. Add the chief's name and address in the recipient line.
4. Start the letter with a formal salutation like "Dear Chief [Last Name]"
5. Introduce yourself and the purpose of the letter briefly in the first paragraph.
6. Use the next paragraphs to provide detailed information and reasons for the approval request. Be specific and clear in your communication.
7. Make sure to include any necessary documents or attachments to support your request.
8. Close the letter with a formal closing like "Sincerely" or "Respectfully" and your name and designation below it.
9. Before sending the letter, proofread it thoroughly to avoid any errors or mistakes.
By following these steps, you can prepare a formal letter that will impress your chief and increase the chances of getting the desired approval.
To prepare a formal letter for a chief's approval, you should follow these steps:
1. Include your contact information: Begin the letter with your name, address, phone number, and email address at the top left corner of the page.
2. Add the date: Write the date below your contact information, leaving a line of space.
3. Include the recipient's information: Write the chief's name, title, organization, and address below the date, also leaving a line of space between each piece of information.
4. Use a formal salutation: Start the letter with a formal greeting, such as "Dear [Chief's Name],"
5. Introduce yourself and your purpose: In the first paragraph, briefly introduce yourself and explain the reason for writing the letter, which is to seek the chief's approval.
6. Provide details: In the second paragraph, offer specific information about the matter for which you require the chief's approval, including any relevant facts, figures, or documentation.
7. Justify your request: Explain why the chief's approval is necessary and how it will benefit the organization or project.
8. Be respectful and courteous: Use polite language throughout the letter, and show appreciation for the chief's time and consideration.
9. Close the letter: Conclude the letter with a statement of gratitude, such as "Thank you for considering my request," followed by a closing phrase like "Sincerely," "Respectfully," or "Yours faithfully," and your full name.
10. Proofread: Double-check the letter for any errors, and make sure the content is clear and concise before sending it to the chief.
By following these steps, you can effectively prepare a formal letter for a chief's approval, ensuring it is professional and conveys your message appropriately.
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Prepare the year end adjusting journal entries for the following transactions in the GENERAL JOURNAL. Narratives are required.a. Depreciation on equipment at cost of RM450,000 and accumulated depreciation of RM25,000 is charged at 10% per annum with reducing balance method.b. Office furniture at cost of RM200,000 is expected to be used for 10 years with salvage value of RM3,000.c. As at 31 December, commission income received in advance is amounting to RM2,500.d. Travelling expense accrued for RM300.e. The owner of the business withdrew RM1,400 cash from the office.
Depreciation expenses recognize the reduction in the value of assets over time, while the adjustment for unearned income and accrued expenses ensures that the income and expenses are recorded in the correct period.
The year-end adjusting journal entries for the following transactions are as follows:
a. Depreciation on equipment:
Depreciation Expense 37,250
Accumulated Depreciation 37,250
(Note: Calculation - [RM450,000 - RM25,000] x 10% = RM37,250)
b. Office furniture:
Depreciation Expense 19,700
Accumulated Depreciation 19,700
(Note: Calculation - [RM200,000 - RM3,000] / 10 years = RM19,700)
c. Commission income received in advance:
Unearned Commission Income 2,500
Commission Income 2,500
d. Travelling expense accrued:
Travelling Expense 300
Accrued Travelling Expense 300
e. Owner's withdrawal:
Owner's Withdrawal 1,400
Cash 1,400
These adjusting journal entries are necessary to ensure that the financial statements accurately reflect the company's financial position and performance at the end of the accounting period. The owner's withdrawal is recorded to update the owner's equity account, which represents the owner's investment in the business.
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