Emily should have consulted an accountant when setting up her business for several reasons: Proper legal structure: An accountant could have advised Emily on the most appropriate legal structure for her business based on her specific circumstances.
This would ensure that she complies with all legal requirements and maximizes the benefits of the chosen structure, such as tax advantages and limited liability. Tax obligations and compliance: An accountant would have helped Emily understand her tax obligations from the start, including corporate tax, personal tax, and sales tax (such as HST in this case). They would have guided her on how to register for taxes, file returns, and make payments accurately and on time. This would have prevented the issues she faced with the dissolution of her corporation and the unpaid taxes. Payroll and employment matters: Consulting an accountant would have clarified the distinction between employees and subcontractors. In Emily's case, hiring cleaners as subcontractors instead of employees led to potential legal and tax issues. An accountant could have advised her on proper payroll procedures, deductions, and employment laws to ensure compliance and avoid penalties.Financial record-keeping: An accountant could have helped Emily set up proper accounting systems and processes from the beginning. This would include keeping accurate records of income and expenses, tracking invoices and payments, and maintaining organized financial statements. Timely and accurate financial information is crucial for managing the business effectively and fulfilling reporting requirements.Business planning and financial management: An accountant could have assisted Emily in creating a solid business plan, budgeting, and forecasting cash flow. This would have provided her with insights into the financial health of her business, enabling better decision-making and preventing cash flow problems. Additionally, regular financial reviews with an accountant would have helped Emily stay on top of her accounting and tax obligations. Procedures that could have been set up include: Regular bookkeeping: Emily should have established a system to regularly record all financial transactions of the business. This would involve documenting sales, expenses, and other financial activities in an organized manner. Hiring a bookkeeper or using accounting software could have helped maintain accurate records. This would involve setting aside funds for tax payments, filing returns on time, and complying with sales tax requirements, such as charging and remitting HST. Payroll management: If Emily had hired employees instead of subcontractors, she should have implemented proper payroll procedures. This would include deducting income tax, CPP (Canada Pension Plan), and EI (Employment Insurance) contributions from employee wages and remitting them to the appropriate authorities.
By following these procedures and seeking professional advice from an accountant, Emily could have avoided the complications and financial difficulties she faced in her business.
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Write the advantages and disadvantages of being an independent
contractor versus an employee. Compare both and give your opinion
on which you think is better.
Advantages of being an independent contractor:
Flexibility: Independent contractors have the freedom to choose their own working hours, projects, and clients. They have greater control over their work-life balance and can often work from different locations.
Autonomy: As an independent contractor, you have the ability to make decisions regarding your work without needing approval from superiors. You have more control over how you deliver your services and can shape your business according to your preferences.
Higher earning potential: Independent contractors have the opportunity to negotiate their rates and fees directly with clients. They can set their prices based on their expertise and market demand, potentially leading to higher earnings compared to traditional employment.
Variety of projects: Contractors often have the opportunity to work on diverse projects and gain experience in different industries. This can lead to continuous learning, professional growth, and a broader skill set.
Disadvantages of being an independent contractor:
Lack of job security: Independent contractors are not guaranteed a steady stream of work or income. They may face periods of unemployment or have to deal with fluctuating demand for their services.
No employee benefits: Unlike employees, contractors are not entitled to benefits such as health insurance, retirement plans, paid leave, or other perks that traditional employees may receive.
Self-employment taxes and financial responsibilities: Independent contractors are responsible for paying self-employment taxes, which can be a significant financial burden. They must also handle their own accounting, bookkeeping, and financial management.
Limited legal protections: Contractors have fewer legal protections compared to employees. They may not be covered by employment laws that safeguard employee rights, such as protection against wrongful termination or discrimination.
Opinion:
The choice between being an independent contractor or an employee depends on individual preferences, circumstances, and career goals. Each has its own advantages and disadvantages. As an AI language model, I do not have personal opinions. It's important to consider factors such as work-life balance, financial stability, benefits, job security, and professional growth when making a decision.
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A civil engineer planning for her retirement places 8% of her salary each year into a high-technology stock fund. If her salary this year (end of year 1) is $170,000 and she expects her salary to increase by 4% each year, what will be the future worth of her retirement fund after 16 years provided it earns 9% per year? The future worth of her retirement fund will be $ ....
The future worth of her retirement fund after 16 years is $1,217,430.23.
The civil engineer planning for her retirement places 8% of her salary each year into a high-technology stock fund. If her salary this year (end of year 1) is $170,000 and she expects her salary to increase by 4% each year.
The future worth of her retirement fund will be $1,217,430.23.
Let's calculate it:
Given,
Current salary = $170,000
Expected growth rate = 4%
Rate of interest = 9%
Contribution percentage = 8%
To find,
The future worth of her retirement fund after 16 years.
As we know, FV = PV(1 + i)n + PMT[(1 + i)n - 1 / i], where,
PV = Present Value
i = Rate of interest
n = Number of years
PMT = Payment made per year
We have,
Initial investment (PMT) = 0.08 * 170,000 = $13,600
Present Value (PV) = $0
Future Value (FV) = ?
Number of years (n) = 16
Rate of Interest (i) = 9%
Expected salary in the first year = $170,000
Expected salary in the second year = $170,000 * 1.04 = $176,800
Expected salary in the third year = $176,800 * 1.04 = $183,872
Expected salary in the fourth year = $183,872 * 1.04 = $191,324.48And so on up to the 16th year, which is:
Expected salary in the sixteenth year = $341,558.49
To calculate future value (FV), we need to calculate the payment made per year (PMT).
PMT = 0.08 * 170,000 = $13,600
The future value of the investment after 16 years,
FV = PV(1 + i)n + PMT[(1 + i)n - 1 / i]
FV = $0(1 + 0.09)16 + $13,600 [(1 + 0.09)16 - 1 / 0.09]
FV = $1,217,430.23
Therefore, the future worth of her retirement fund after 16 years is $1,217,430.23.
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Horton Stores exchanged land and cash of $5,200 for similar land. The book value and the fair value of the land were $90,000 and $101,400, respectively. Assuming that the exchange has commercial substance, Horton would record land-new and a gain/(loss) on exchange of assets in the amounts of: Land Gain/(loss) a. $106,600 $ 0 b. $106,600 $11,400 C. $ 95,200 $ 0 d. $ 95,200 $11,400 O O O O Option A Option B Option C Option D
Horton Stores would record a gain of $106,600 and recognize the new land acquired at a value of $11,400. When exchanging assets, the general rule is to record the new asset received at its fair value.
In this case, the fair value of the land received is $101,400. However, the exchange has commercial substance, meaning that the future cash flows of the company will be affected by the transaction. To determine the gain or loss on the exchange, the book value of the old asset needs to be compared to the fair value of the new asset. The book value of the old land is given as $90,000. Since the fair value of the new land is higher, there is a gain on the exchange. The gain is calculated as the difference between the fair value of the new land and the book value of the old land: $101,400 - $90,000 = $11,400.
In addition to recording the gain, the new land received is recognized on the books at its fair value, which is $101,400. Therefore, the entries made by Horton Stores would be to debit Land-New for $101,400 and credit Gain on Exchange of Assets for $106,600.
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Which of the following is NOT a lever for increasing the service
level?
a.
Paying suppliers later
b.
Increasing safety inventor
c.
Reducing lead time
d.
Reducing demand standard deviation
Out of the given options, the lever that is NOT used for increasing the service level is the one mentioned in option (a), which is "Paying suppliers later".
There are four levers that can be used to increase the service level, which are as follows:
1. Increasing safety inventory
2. Reducing lead time
3. Reducing demand standard deviation
4. Increasing capacity
All the levers mentioned above have a direct or indirect impact on the service level and help to improve it. However, paying suppliers later is not one of the levers that are used to increase the service level. This is because paying suppliers late may lead to supply chain disruptions, and it may cause the suppliers to stop providing their products to the organization. This can negatively affect the service level of the organization. Therefore, the correct option is (a) - Paying suppliers later.
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Explain the differences between global HR and domestic HR.
Provide three examples.
The primary differences between global HR and domestic HR are the diversity of employees and the need for cross-cultural communication and understanding.
Global HR and Domestic HR refer to the two different human resources strategies that an organization may use. Here are the differences between global HR and domestic HR: Global HR: Global HR refers to the management of an organization's human resources on a global or international level. This strategy can include the recruitment and training of employees from different countries and cultures. Examples: Providing diversity and inclusion training for all employees, creating employee resource groups to support employees from different countries and cultures, and developing a global compensation system that accounts for regional differences in cost of living and compensation standards. Domestic HR: Domestic HR refers to the management of human resources within the country where an organization operates. This strategy often focuses on recruiting and retaining local employees, and ensuring that the organization complies with local labor laws and regulations. The primary differences between domestic HR and global HR are the focus on local laws and regulations and the need for a deep understanding of local culture and customs. Examples: Developing a benefits package that complies with local laws and customs, creating a recruitment strategy that targets local job markets and educational institutions, and developing a training program that is tailored to the local culture and language.
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Raymond Ryans purchased a 50-year –old flat in Melbourne on 15 September 2010 for $350,000 which he subsequently let out to tenants until 15 October 2015. Due to personal circumstances, Raymond decided to personally use the flat from 16 October 2015. Raymond eventually sold the flat for $510,000 on 15 March 2020.
The number of days of ownership is counted from September 15, 2010, until March 15, 2020 (3457 days).CGT= $160,000 x (1638/3457) x 100% = $75,476.49 Raymond Ryans must pay a CGT of $75,476.49.
Raymond Ryans bought an old flat in Melbourne for $350,000 on 15 September 2010 and later let it out to tenants. However, Raymond Ryans chose to occupy the flat from October 16, 2015, owing to personal circumstances.
On March 15, 2020, Raymond eventually sold the apartment for $510,000.The capital gains of the property will be calculated as follows; Capital gains= selling price- purchase price= $510,000-$350,000= $160,000From September 20, 1985, the Australian Tax Office (ATO) has prescribed a set of capital gains taxation (CGT) rules that determine the amount of tax payable when an asset is sold. As a result, Raymond Ryans will be subject to capital gains tax.
According to ATO, all personal use assets acquired for less than $10,000 are exempt from capital gains tax. However, the flat does not fall under this category as it was purchased for $350,000. Hence, Raymond Ryans will be required to pay CGT for the portion of the time when the property was used for personal purposes.
The CGT calculation is performed using the following formulae: CGT= Capital gain x (number of days of personal use/number of days of ownership) x 100%The number of days of personal use is counted from October 16, 2015, until March 15, 2020 (1638 days).The number of days of ownership is counted from September 15, 2010, until March 15, 2020 (3457 days).CGT= $160,000 x (1638/3457) x 100% = $75,476.49Raymond Ryans must pay a CGT of $75,476.49.
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(a) Explain what the aggregate demand curve represents and why
it is downward-sloping. Please provide an example.
(b) Explain what the aggregate supply curve represents and why
it is upward-sloping. P
The aggregate demand curve is downward-sloping due to the wealth effect, interest rate effect, and the international trade effect. The aggregate supply curve represents the total quantity of goods and services.
(a) The aggregate demand curve represents the total demand for goods and services in an economy at different price levels. It shows the relationship between the overall price level in the economy and the total quantity of goods and services demanded. The aggregate demand curve is downward-sloping due to the wealth effect, interest rate effect, and the international trade effect.
The wealth effect suggests that as the price level decreases, the purchasing power of consumers increases, leading to higher consumption and increased aggregate demand. The interest rate effect states that when the price level falls, interest rates tend to decrease, which stimulates investment and consumption, further increasing aggregate demand. The international trade effect indicates that a decrease in the price level makes domestic goods relatively cheaper compared to foreign goods, boosting exports and reducing imports, thereby raising aggregate demand.
For example, suppose there is a decrease in the overall price level in an economy. This would result in lower interest rates, increasing investment and consumption. Consumers' purchasing power would also rise, leading to higher demand for goods and services. Additionally, cheaper domestic goods would make exports more competitive, contributing to an increase in aggregate demand.
(b) The aggregate supply curve represents the total quantity of goods and services that producers are willing to supply at different price levels in an economy. It is upward-sloping due to several factors, including the profit effect, the cost effect, and the availability of inputs.
The profit effect suggests that as the price level increases, producers can earn higher profits, incentivizing them to increase output and supply more goods and services. The cost effect states that as prices rise, the cost of production also increases, leading to higher production costs. To cover these higher costs, producers need to increase prices and supply more output, resulting in an upward-sloping aggregate supply curve. The availability of inputs, such as labor and raw materials, also plays a role. If these inputs become scarce or expensive, it becomes more costly for producers to increase output, leading to an upward-sloping aggregate supply curve.
For instance, if the overall price level in an economy rises, producers experience higher profit margins, encouraging them to expand production and supply more goods and services. However, as prices increase, the cost of production also rises due to factors like wages and resource prices. To maintain profitability, producers need to increase prices further and supply more output, resulting in an upward-sloping aggregate supply curve.
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A few years ago, the ISK and Bónus were very similar in size and the chains together had become almost monopolistic in the market. Their cost structure was similar. Bónus had the price policy to always have the lowest price and the ISK was always a little higher. This can be thought of as a consequence of them determining the quantity at the same time, although Bónus has always had a slightly lower price. After some time in the activities of both, the ISK decided to change its pricing policy and reduced its price under Bónus. The new policy significantly increased the amount of ISK sold. Bonus then responded by giving milk. The competition authorities responded to this by fining Bónus hundreds of millions of ISK. for what seemed to have benefited consumers i.e. to receive milk for free.
Any kind of competitive environment (oligopoly model) can be argued to apply to the conditions of Bónus and Króna.
How can a game theory situation be described here and a well-known game in this subject be pointed out? Is the game still or lively?
How is there a risk of consultation here even if the parties never have direct contact?
Why did the government react so harshly by fining Bonus for giving milk? What characterizes Bónus' tactics in reacting to the ISK's competition in this way?
Game theory can be described as the strategic behavior of the firms that are involved in a market. In the case of Króna and Bónus, a strategic interdependence exists between the two firms, and this can be explained through the game theory situation.
In this situation, a game theory analysis can help explain the dynamics between Bónus and ISK. Game theory is a mathematical framework used to study decision-making and strategic interactions among multiple participants. In this case, the two supermarket chains, Bónus and ISK, are engaged in a competitive environment, specifically an oligopoly.One well-known game that applies to this scenario is the prisoner's dilemma. In the prisoner's dilemma, two individuals have to decide whether to cooperate or betray each other. If both cooperate, they both receive a moderate benefit. However, if one cooperates and the other betrays, the betrayer receives a significant benefit while the cooperator suffers a loss. If both betray, they both receive a moderate but lower benefit compared to cooperation.The game in this scenario can be viewed as an extended version of the prisoner's dilemma. Bónus and ISK are the players, and the decisions they make regarding their pricing policies can be seen as their choices of cooperation or betrayal. Initially, both chains were setting prices at similar levels, and they were both benefiting from shared market dominance. However, when ISK reduced its prices below Bónus, it gained a competitive advantage, leading to increased sales.Bónus responded by giving away free milk, which can be seen as a retaliatory move or a competitive tactic to counter ISK's price reduction. This action can be interpreted as a form of "irrational" behavior in the context of game theory, as it goes against the traditional profit-maximizing strategy. By giving away free milk, Bónus attempted to lure customers back and regain market share.Learn more about Game theory: https://brainly.com/question/14347653
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More accurate demand forecasting can reduce operations costs by all of the following ways EXCEPT:
A. Improving quality through reducing process variance
B. Reducing the safety stock required for inventory
C. Better aggregate capacity planning for labor
D. Better detailed capacity planning for equipment
Better forecasting can also improve production planning, leading to a reduction in over-production and under-production.
More accurate demand forecasting can reduce operational costs by all of the following ways except better aggregate capacity planning for labor. The accurate forecasting of demand provides an opportunity for businesses to plan effectively and make informed decisions. An increase in the accuracy of forecasting enables businesses to make informed decisions that lead to a reduction in operational costs. Improving quality through reducing process variance: Process variance can result in inconsistencies in product quality, which can lead to increased waste, a decrease in customer satisfaction and an increase in costs. Improved forecasting can lead to more accurate scheduling, enabling companies to reduce process variance, and thus improve quality. Reducing the safety stock required for inventory: Safety stock is an additional level of inventory that companies hold to cater for demand that is higher than anticipated. Accurate forecasting can reduce the safety stock required, leading to a reduction in inventory costs. Better detailed capacity planning for equipment: Accurate forecasting allows companies to schedule maintenance and repair tasks, preventing equipment from breaking down unexpectedly, and reducing the cost of repairs and downtime. Better forecasting can also improve production planning, leading to a reduction in over-production and under-production. Better aggregate capacity planning for labor: This option is not one of the ways that accurate demand forecasting can reduce operational costs.
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Thornton Corporation incurs the following annual fixed costs: Item Depreciation Officers' salaries Long-term lease Property taxes Cost $ 61,000 180,000 95,000 10,000 Required Determine the total fixed cost per unit of production, assuming that Thornton produces 6,000, 6,500, or 7,000 units. (Round your answers to 2 decimal places.) 6,000 6,500 7,000 Units Produced Fixed cost per unit
The fixed cost per unit of production is $57.67 when 6,000 units are produced, $53.23 when 6,500 units are produced, and $49.43 when 7,000 units are produced.
Fixed costs refer to the type of costs that don't vary according to production levels. On the other hand, variable costs change with the production volume. Fixed costs for a company would be costs such as property rent, property taxes, and insurance that would remain constant over a production period.
Thornton Corporation Inc. incurs the following annual fixed costs:
Depreciation - $ 61,000
Officers' salaries - $ 180,000
Long-term lease - $ 95,000
Property taxes - $ 10,000
Fixed cost per unit can be calculated as the total fixed cost divided by the number of units produced.
To determine the total fixed cost per unit of production, assuming that Thornton produces 6,000, 6,500, or 7,000 units, we need to divide the total fixed cost by the respective number of units produced.
Total fixed cost = Depreciation + Officers' salaries + Long-term lease + Property taxes= $ 61,000 + $ 180,000 + $ 95,000 + $ 10,000= $ 346,000
Fixed cost per unit when 6,000 units are produced = Total fixed cost / Number of units produced= $ 346,000 / 6,000= $ 57.67
Fixed cost per unit when 6,500 units are produced = Total fixed cost / Number of units produced= $ 346,000 / 6,500= $ 53.23
Fixed cost per unit when 7,000 units are produced = Total fixed cost / Number of units produced= $ 346,000 / 7,000= $ 49.43
Thus, the fixed cost per unit of production is $57.67 when 6,000 units are produced, $53.23 when 6,500 units are produced, and $49.43 when 7,000 units are produced.
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True or False? Why?
A policy for decreasing the deficit would probably include
cutting consumption and government spending
True, a policy for decreasing the deficit would probably include cutting consumption and government spending.
The difference between government spending and revenue over a given time period is known as the deficit. Policymakers frequently put policies into place that are intended to decrease spending and increase revenue in order to reduce the deficit. A common approach to deal with deficits is to reduce consumption because it can help limit government spending. Additionally, cutting back on government spending can aid in reducing the deficit since less money is leaving the government's coffers. A comprehensive deficit reduction plan may also include additional measures like raising taxes or promoting economic growth.
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True. Cutting consumption and government spending would undoubtedly be part of a strategy to reduce the deficit.
Consumption reduction suggests that people and households would spend less money on goods and services, which can assist lower the overall demand for products and services in the economy. By reducing its expenditure on various programmes and services, the government can minimise its budget deficit by reducing its spending overall.
These policies seek to lower total economic spending, which can help close the deficit by either raising taxes or cutting spending on the part of the government. It is important to keep in mind that exact policy measures can differ according on the nation, the economy, and the aims of the policy.
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Marigold Corp. has 8000 units in beginning finished goods. The sales budget shows expected sales to be 37000 units. If the production budget shows that 43000 units are required for production, what was the desired ending finished goods?
a. 8000. b. 29000. c. 2000. d. 14000.
To calculate the net cash provided by operating activities using the indirect method, we start with the net income and make adjustments for non-cash expenses and changes in working capital accounts.
Net Income: $490,000
Add: Depreciation Expense: $107,000
Less: Gain on Sale of Land: $143,000
Add: Increase in Accounts Receivable: $76,000
Add: Decrease in Inventory: $66,000
Less: Increase in Accounts Payable: $250,000
Net Cash Provided by Operating Activities = Net Income + Depreciation Expense - Gain on Sale of Land + Increase in Accounts Receivable + Decrease in Inventory - Increase in Accounts Payable
Net Cash Provided by Operating Activities = $490,000 + $107,000 - $143,000 + $76,000 + $66,000 - $250,000
Net Cash Provided by Operating Activities = $336,000
Therefore, the correct answer is b. $632,000.
The correct answer is d. 14000.
The desired ending finished goods for Marigold Corp. is 14,000 units.
How many units are the desired ending finished goods?To calculate the desired ending finished goods, we need to consider the beginning finished goods, expected sales, and the units required for production.
Beginning finished goods = 8000 units
Expected sales = 37000 units
Units required for production = 43000 units
Desired ending finished goods = Beginning finished goods + Units required for production - Expected sales
Desired ending finished goods = 8000 + 43000 - 37000
Desired ending finished goods = 8000 + 6000
Desired ending finished goods = 14000
Therefore, the desired ending finished goods is 14000 units.
The correct answer is d. 14000.
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Being offered potential for career advancement, a ladder to climb Working in a fast-paced environment with a rush of urgency and a demanding schedule Having opportunities to work with people who are ahead of you in job title and status Having a job title and status Being recognized for work well done, receiving awards, verbal praise, commendations Building a sense of personal and professional growth Having an opportunity to make a lot of money through bonuses, commissions or stock options Do not confuse this exercise by adding things like time for the family, location or a minimum level of remunera- tion. Stay with what you need from the work itself. Questions: Question Answer What work have you done that truly reflected your values? What work have you done that was contrary to your values? List your non-negotiable criteria for being satisfied and motivated in your work. List the values and motivators that are desirable but could be traded off.
What work have you done that truly reflected your values?There have been multiple works that I have done which reflected my values. The first and foremost value that I hold dear is honesty.
What work have you done that truly reflected your values? There have been multiple works that I have done which reflected my values. The first and foremost value that I hold dear is honesty. As an individual, I always try to stay true to my word and keep myself honest. So, any work that required me to lie or hide things went against my value system. I also value hard work and dedication. Therefore, any work that required me to put in extra hours or work hard in achieving the final goal was something that reflected my values. What work have you done that was contrary to your values? As mentioned earlier, any work that required me to lie or hide things went against my value system. Therefore, I avoided such works as they contradicted my values. List your non-negotiable criteria for being satisfied and motivated in your work.· Working in an environment that supports growth and development· Opportunities for professional growth and advancement· Encouraging and supportive coworkers· Competitive salary and benefits· Job security· Opportunities to learn and develop new skills List the values and motivators that are desirable but could be traded off.· Flexible schedule· Opportunities to work from home· Additional vacation time· Additional personal time· More casual work environment.
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Zissou Corp's budgeted manufacturing costs for 60,000 model boats are:
Fixed manufacturing costs......... $65,000 per month
Variable manufacturing costs.......... $13.00 per boat
Zissou produced 50,000 boats during March. How much is the flexible budget for total manufacturing costs for March?
Group of answer choices
$845,000
$700,000
$650,000
$715,000
The flexible budget for total manufacturing costs for March is $715,000. Therefore, the correct answer is option D) $715,000.
The fixed manufacturing costs do not change with the level of production, so they will remain constant at $65,000 per month. The variable manufacturing costs will depend on the number of boats produced.
Variable manufacturing costs per boat = $13.00
Number of boats produced in March = 50,000
Total variable manufacturing costs for March = Variable cost per unit x Number of units produced
= $13.00 x 50,000
= $650,000
Therefore, the total manufacturing costs for March (fixed + variable) under the flexible budget are:
= Fixed manufacturing costs + Total variable manufacturing costs
= $65,000 + $650,000
= $715,000
So, the flexible budget for total manufacturing costs for March is $715,000. Therefore, the correct answer is option D) $715,000.
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Assume that you are 18 years old and deciding whether to go to college or start working. If you work, you will earn a constant wage WHS through out your career. if you study, you pay tuition for four years and then earn a constant wage WCOL.
(ii) Show the condition under which you choose to study.
(ii)Explain how changes in tuition, in the interest rate and in the wage differential (WCM — WHS) would affect your decision.
(i) Condition under which you choose to study:
Assuming that the tuition fee is constant, the present value of the future salary, if one chooses to study, should be greater than the present value of the future earnings if one chooses to work. In other words, choosing to study is beneficial if the following condition holds: PV (Future Earnings If Study) > PV (Future Earnings If Work)
(ii) Explanation on how changes in tuition, interest rate, and wage differential would affect your decision:
Changes in tuition: If the tuition fee increases, then the present value of future earnings from study decreases. Thus, a higher tuition fee would discourage someone from choosing to study.
Changes in the interest rate: An increase in the interest rate would cause a decrease in the present value of future earnings, both in the case of studying and working. However, the reduction would be larger in the case of studying than working. Thus, higher interest rates would discourage someone from studying.
Changes in the wage differential (WCM — WHS): A higher wage differential means that the present value of future earnings from work is higher than that from the study. Thus, a higher wage differential would discourage someone from studying. However, if the wage differential were to decrease to the point where the present value of future earnings from study is higher than that from work, then studying would be more attractive.
Choosing whether to study or work is one of the significant decisions an individual needs to make. While both choices have their benefits, they are unique in their ways. In this case, if someone chooses to work, they will earn a constant wage WHS throughout their career. On the other hand, if they choose to study, they will pay tuition for four years and then earn a constant wage WCOL.
For an 18-year-old, choosing to study would be a better option if PV (Future Earnings If Study) > PV (Future Earnings If Work). In other words, studying is advantageous if the present value of the future salary is greater than the present value of future earnings if they work. Therefore, the condition under which someone should choose to study is when the present value of the future salary from studying is more significant than the future earnings from work. Therefore, if the tuition fee increases, then the present value of future earnings from studying decreases. Consequently, higher tuition fees would discourage someone from choosing to study.
A change in the interest rate would affect the present value of future earnings for both studying and working. An increase in the interest rate would cause a decrease in the present value of future earnings. However, the reduction would be higher for studying than working. Thus, higher interest rates would discourage someone from studying.
A higher wage differential implies that the present value of future earnings from work is more significant than that from study. Thus, a higher wage differential would discourage someone from choosing to study. However, if the wage differential were to decrease to the point where the present value of future earnings from study is higher than that from work, then studying would be more attractive.
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Analysis expects Better Days, Inc to have negative earnings. When earnings are announced, the actual earnings are slightly better than anticipated but still negative. As far as the firm's stock price goes, the new is likely to have a/an:
A. slow and slightly negative effect
B. immediate and significantly negative effect
C. immediate and slightly negative effect
D. immediate and slightly positive effect
Based on the given information, it is likely that the firm's stock price will experience an immediate and slightly negative effect.
Even though the actual earnings were slightly better than anticipated, they still remained negative. This indicates that the firm is not performing as well as expected, which may lead investors to sell off their shares, causing the stock price to drop. However, the effect may not be significant as the earnings were only slightly better than anticipated, indicating that the negative news was not entirely unexpected. Therefore, option C, immediate and slightly negative effect, is the most appropriate answer. It is important to note that other factors may also influence the stock price, such as the overall market trends, industry performance, and investor sentiment, which may mitigate or amplify the impact of the earnings announcement.
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for one transaction le proses purce respectively as follows: "Fri, 21 Jan 2022 00:02:09 UTC", "Friday, January 21, 2022 07:02:09 AM","1642748529. 44582.2931597222" The first source uses UTC, the second uses the local timezone, the third uses the Epoch timestamp, and the fourth uses the Excel timestamp. All represent that same exact time. How would you determine which timestamp to output in your transformation? O Use the UTC variant as it is not sensitive to time zone O Refer to the data requirements O Use the Excel variant as it is the most universal O Output all four variants 24
When selecting a timestamp to output in a transformation of one transaction le proses purce, we should refer to the data requirements.
The data requirements will define what type of timestamp format we should use in our transformation. The UTC variant should be used as it is not sensitive to time zone. The UTC variant is the same all around the world, which means that it can be easily understood and interpreted across different locations. In contrast, local time zones can vary by region and can be challenging to reconcile in a single transformation. Instead of outputting all four variants, it's recommended to select the timestamp variant that meets the specific data requirements of the system. Using the UTC variant for timestamp transformation is often the best choice since it ensures consistency, accuracy, and universality.
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The data requirements and determine which timestamp format is required. If the data requirements are not specified. The intended audience and the relevance of UTC and Excel formats before selecting a timestamp format.
When deciding which timestamp to output in your transformation, the following considerations should be taken into account:
If the data requirements define the required timestamp format or precision, use the timestamp that complies with these requirements.
If the data requirements do not specify the required format or precision, consider whether or not it is important to retain the original timestamp format. If there is no compelling reason to keep the original format, use a timestamp that is widely used or appropriate to the intended audience.
If UTC is relevant to the processing, use the UTC timestamp because it is not sensitive to time zones and is unambiguous.
If the data will be read by people who use Microsoft Excel, it may be beneficial to use the Excel timestamp because it is the most prevalent format for timestamps in Excel worksheets.
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What specific action steps should the organization take to solve the turnover problem? What changes should be implemented?
What are the potential barriers, obstacles, and challenges to following your recommendations?
What are the risks, costs, and possible unintended consequences of following your recommendations?
How will you communicate your findings to your clients and overcome potential resistance?
To solve the turnover problem, the organization should take the following action steps:
Develop an effective hiring process: The organization should implement a hiring process that considers an individual's knowledge, skills, and attitude, among other things. A sound hiring process reduces employee turnover by hiring people who are a good fit for the organization.
Improve employee engagement: The organization should conduct regular surveys to determine how engaged the employees are and what their concerns are. The findings should be addressed by the management team to improve the employees' engagement in their work. They could also implement mentoring, wellness, and employee recognition programs.
Implement professional development programs: The organization should provide employees with opportunities to grow and develop in their roles, such as training and education programs, increasing employee retention, and reducing employee turnover rates. Employee recognition programs are also an excellent way to retain employees. There are several potential barriers, obstacles, and challenges that the organization may face while following the recommendations mentioned above.
These include the following:-
Resistance to change: Change management is a vital component of the process, and the company may encounter resistance to change from some employees who are comfortable with the status quo. Poor communication: There may be inadequate communication from the management team to the employees regarding the need for change. This can cause misunderstandings, a lack of buy-in, and even a lack of trust.
Cost: The cost of implementing the changes may be too high for the organization to bear. Possible unintended consequences may include the following:
i) Increased employee turnover: The new changes may not be implemented correctly, causing the employees to feel demotivated and leading to increased employee turnover.
ii)Lack of interest: The employees may not show an interest in the professional development programs, making it challenging to retain employees.
To communicate the findings to clients and overcome potential resistance, the management team must create a plan to ensure that they effectively communicate the need for change. This can be done through frequent and open communication with employees, highlighting the importance of implementing the proposed changes. They could also involve the employees in the change process to increase their buy-in and create a sense of ownership. The team should also monitor the implementation process to identify and address areas of resistance promptly.
The specific action steps that the organization should take to solve the turnover problem includes the following:
Recruiting good talent and hiring suitable employees who are the right fit for the company's culture
Training and development programs should be implemented to help employees grow and acquire new skills and knowledge
Creating a positive work environment that is supportive and provides opportunities for growth and development
Making employee compensation and benefits attractive and competitive to ensure employee retention
Diversity and inclusion programs should be implemented to help employees feel valued and respected
Potential barriers, obstacles, and challenges to following the recommendations include resistance from management or employees, budget constraints, and difficulties in finding suitable candidates for job openings.
Risks, costs, and possible unintended consequences of following the recommendations include increased expenses associated with training, development, and compensation programs. It may also lead to increased competition from other companies in the industry.
Communicating the findings to clients involves presenting the data in a clear and concise manner. Overcoming potential resistance involves listening to the client's concerns and addressing them in a way that is respectful and professional.
Turnover problems can be solved by taking specific action steps. First, the organization should recruit good talent and hire suitable employees who are the right fit for the company's culture. Second, the organization should implement training and development programs to help employees grow and acquire new skills and knowledge. Third, the organization should create a positive work environment that is supportive and provides opportunities for growth and development. Fourth, the organization should make employee compensation and benefits attractive and competitive to ensure employee retention. Finally, diversity and inclusion programs should be implemented to help employees feel valued and respected. The potential barriers, obstacles, and challenges to following the recommendations include resistance from management or employees, budget constraints, and difficulties in finding suitable candidates for job openings. The risks, costs, and possible unintended consequences of following the recommendations include increased expenses associated with training, development, and compensation programs. It may also lead to increased competition from other companies in the industry. Communicating the findings to clients involves presenting the data in a clear and concise manner. Overcoming potential resistance involves listening to the client's concerns and addressing them in a way that is respectful and professional.
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Best Drones (BD) and Finest Drones (FD) comprise a duopoly in the industry of drones and they have to decide how many drones to produce annually. The drones produced by the two firms are perceived by consumers as homogeneous products. The (inverse) market demand curve is P = 50-Q, while the total output is given by Q 9BD + 9FD. Due to differences in labour cost, BD's unit cost equals $3 equals $7 thousand. thousand and FD's unit cost (a) Assuming that the firms simultaneously choose their output levels, compute the equilibrium price as well as each firm's output and profits in the market equilibrium. - (b) Will the above results change if Finest Drones moves first? Discuss briefly these results based on the theory of first/second mover advantag
a. FD's profit can be = (50 - (QBD + QFD) - 7) * QFD. b. The specific impact of FD moving first depends on the strategic behavior and reactions of both firms.
(a) To compute the equilibrium price and each firm's output and profits in the market equilibrium, we need to solve the duopoly game.
Since the drones produced by BD and FD are homogeneous, the market demand curve can be represented as P = 50 - Q, where P is the price and Q is the total output (Q = 9BD + 9FD).
Let's denote BD's output as QBD and FD's output as QFD. In the market equilibrium, QBD + QFD = Q. We can substitute this into the demand curve to get the equilibrium price:
P = 50 - (QBD + QFD)
To find each firm's output and profits, we need to consider their cost structures. BD's unit cost is $3 thousand, and FD's unit cost is $7 thousand.
In the market equilibrium, each firm maximizes its profits by choosing the output level that maximizes its revenue minus its costs. BD's profit can be calculated as follows:
ProfitBD = (P - Unit CostBD) * QBD
= (50 - (QBD + QFD) - 3) * QBD
Similarly, FD's profit can be calculated as:
ProfitFD = (P - Unit CostFD) * QFD
= (50 - (QBD + QFD) - 7) * QFD
We can solve these equations simultaneously to find the equilibrium output, price, and profits for each firm.
(b) If Finest Drones (FD) moves first, the results may change due to the theory of first/second mover advantage. In a duopoly, the order of decision-making can have an impact on the outcomes.
If FD moves first and chooses its output level, BD can observe FD's choice before making its own decision. This additional information can influence BD's strategy and potentially lead to different outcomes compared to the simultaneous decision-making scenario.
The specific impact of FD moving first depends on the strategic behavior and reactions of both firms. It could result in a different equilibrium output, price, and profits for each firm compared to the case where decisions are made simultaneously.
To fully analyze the impact of FD moving first, a detailed analysis of the firms' strategic interactions and potential reactions would be necessary.
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If the interest rate on a 2-year investment is 7.35% compounded
semiannually, what is the equivalent interest rate compounded
a. quarterly?
b. annually?
c. monthly?
The equivalent interest rate compounded quarterly is 7.48%, compounded annually is 7.60% and compounded monthly is 7.68%.
The interest can be compounded quarterly, monthly and annually. We have to calculate the equivalent interest rates compounded quarterly, annually and monthly.
We can use the formula as follows:
A = P(1 + r/n)^nt
Where, A = Final amount, P equivalent interest rate compounded quarterly:
Here, n = 4 and t = 2 as the investment is for 2 years.
A = P(1 + r/n)^nt
A = P(1 + 0.0735/4)^(4*2)
A = P(1.018375)^8
A = 1.018375^8P
The equivalent interest rate compounded annually
:Here, n = 1 and t = 2 as the investment is for 2 years.
A = P(1 + r/n)^nt
A = P(1 + 0.0735/1)^(1*2)
A = P(1.0735)^2
A = 1.0735^2P
The equivalent interest rate compounded monthly:
Here, n = 12 and t = 2 as the investment is for 2 years.
A = P(1 + r/n)^nt
A = P(1 + 0.0735/12)^(12*2
)A = P(1.005875)^24
A = 1.005875^24P
The interest rate is given as 7.35% compounded semiannually, i.e. interest is paid twice a year. Now, we are supposed to calculate the equivalent interest rate if interest is compounded quarterly, annually and monthly.
The equivalent interest rate compounded quarterly:
Let’s say the interest rate compounded quarterly is r1.
Let P be the principal, and n1 be the number of times interest is paid per year; here n1 = 4 as it is compounded quarterly.
Now, A = P(1 + r1/n1)^(nt1), where t1 = 2 years (as the investment is for 2 years).
Now, substituting the values we get:1.0735 = 1 + r1/4r1 = 0.0735*4r1 = 0.294
Therefore, the equivalent interest rate compounded quarterly is 7.48%.The equivalent interest rate compounded annually:
Let’s say the interest rate compounded annually is r2.Let P be the principal, and n2 be the number of times interest is paid per year; here n2 = 1 as it is compounded annually.
Now, A = P(1 + r2/n2)^(nt2), where t2 = 2 years (as the investment is for 2 years).
Now, substituting the values we get:1.0735 = 1 + r2/1r2 = 0.0735
Therefore, the equivalent interest rate compounded annually is 7.60%.
The equivalent interest rate compounded monthly:
Let’s say the interest rate compounded monthly is r3.
Let P be the principal, and n3 be the number of times interest is paid per year; here n3 = 12 as it is compounded monthly.
Now, A = P(1 + r3/n3)^(nt3), where t3 = 2 years (as the investment is for 2 years).
Now, substituting the values we get:1.0735 = 1 + r3/12r3 = 0.0735*12r3 = 0.882
Therefore, the equivalent interest rate compounded monthly is 7.68%.
The equivalent interest rate compounded quarterly is 7.48%, compounded annually is 7.60% and compounded monthly is 7.68%.
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An assembly component A uses 2 units of another component B. Component A has the planned order release of 36 and 62 units at week 3 and week 4 respectively. The company expects an on hand inventory of 96 units of B at the end of week 2 and a scheduled receipt of 12 units of B from an outside supplier at the start of week 3. What will be the net requirement of component B at week 4?
To calculate the net requirement of component B at week 4, we need to consider the demand from component A, the on-hand inventory, and scheduled receipts.
Demand from component A: Component A requires 2 units of component B for each unit of A. The planned order release of component A is 62 units at week 4. Therefore, the demand for component B from component A at week 4 would be:
Demand from A at week 4 = Planned order release of A at week 4 * 2
Planned order release of A at week 4 = 62 units
Demand from A at week 4 = 62 * 2
= 124 units
On-hand inventory: At the end of week 2, the on-hand inventory of component B is given as 96 units.
Scheduled receipts: At the start of week 3, there is a scheduled receipt of 12 units of component B from an outside supplier.
Net requirement at week 4 = Demand from A at week 4 - On-hand inventory - Scheduled receipts
Net requirement at week 4 = 124 - 96 - 12
= 16 units
The net requirement of component B at week 4 is 16 units. This means that the company needs to procure an additional 16 units of component B to meet the demand of component A at week 4.
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Measuring performance as part of the budgeting
process has been an evolving effort. Primary focus to date has been
on activity measures (how many things you do and if they are
increasing). Discuss how
Measuring performance as part of the budgeting process has been an evolving effort, with a primary focus on activity measures such as the number of things done and whether they are increasing.
Activity measures are useful for tracking progress towards specific goals, such as the number of patients seen by a doctor in a day. However, they do not necessarily indicate whether the activity is achieving the desired outcome, such as improving the patient's health. Outcome measures, on the other hand, provide a more comprehensive view of the effectiveness of the activity.
For example, a hospital may track the number of surgeries performed, but an outcome measure would be the percentage of patients who recovered fully after surgery. This measure provides a better understanding of the hospital's performance in terms of the quality of care provided. However, in recent years, there has been a shift towards outcome measures, which focus on the results or impact of the activities.
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Please file in all Fields Consider Disney's strategies for streaming movies and sports (with ESPN). Disney's subscribers are of three types - 1) Families with young children who really value Disney movies, but place a lower value on ESPN; let's call this Group F; and 2) Individuals who place a higher value on ESPN, let's call them Group S; and 3) Individuals who place the same value on both types of entertainment; let's call then Group M. The following table gives the values that each group places on each type of content: Disney does not have any marginal cost of streaming its movies to its subscribers, however, there is a cost for producing ESPN content, MC = c. Allocative efficiency from getting S group to see Disney and technical inefficiency from getting F group First best efficient should be that S watches both and F watches only Disney. But unbundled eq is S watches only ESPN and F watches only Disney. Consumer Group Value for Disney Movies $13 Group F Value for ESPN $1 $10 $4 Group S Group M $7 $7 Assume that $4 ≤ c < $7, so that it is not technically efficient to include Group F consumers in the ESPN subscription but it is efficient to include Group S and Group M. a. Describe the First-best efficient outcome. Which consumer groups should get the Disney subscription and which consumer groups should get the ESPN subscription? b. If Disney were to allow separate subscriptions for each, how would it price each subscription and who would subscribe to which service? The profits from ESPN will be a function of c. Disney Movies Price Quantity Profit $4 3 $7 $13 ESPN Sports Price Profit $4 $7 $10 1 c. What are Disney's profits and what is the consumer surplus for each group and the total surplus. (They will be functions of c.) Group M and Group F buy Movie subscription. Only Group S buys ESPN subscription. π = $24-C, CSF = $6, CSS = $0, CSM = $0, TS = $30 - c. 2 1 Quantity 3 2 d. Now suppose Disney instead offered a bundle with both Disney and ESPN. How would it price its bundle? e. What are Disney's profits, consumer surplus to each group and total surplus. (Again, they will be functions of c.) f. For what values of c is it profitable to bundle the two types of content together? g. For what values of c is it efficient to bundle the two types of content together? h. Explain the trade-off in technical and allocative efficiency from bundling. How is this trade-off affected by the value of c?
The most efficient way is to bundle the two types of content together, but it will affect technical and allocative efficiency. The value of c affects this trade-off, and for the efficient bundling of the two types of content, c should be less than or equal to $7.
Disney's strategy for streaming movies and sports was to cater to families with young children who place value on Disney movies, individuals who place value on ESPN and individuals who place equal value on both. The three groups are F (Disney movies), S (ESPN), and M (both Disney and ESPN).The first-best efficient outcome is that S group watches both Disney and ESPN and F group watches only Disney. The technical inefficiency arises when F group is added to ESPN subscriptions because the MC of streaming ESPN is higher than the value it holds for the group F consumers. So, the most efficient way is to have two separate subscriptions, one for Disney and one for ESPN. The price of the subscriptions will depend on the cost of MC. If the cost of MC is between $4 and $7, it will be inefficient to have group F in ESPN subscriptions, and Disney will only offer subscriptions for Group S and Group M. Disney profits will be a function of c, and the profit equation will be π = $24 - C. CSS = $0, CSM = $0, and CSF = $6. Total surplus will be TS = $30 - c.Disney's profits, consumer surplus, and total surplus will be a function of c. The most efficient way is to bundle the two types of content together, but it will affect technical and allocative efficiency. The value of c affects this trade-off, and for the efficient bundling of the two types of content, c should be less than or equal to $7.
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Based on the following data, what is the quick ratio, rounded to one decimal place? Accounts payable $ 32,000 64,000 Accounts receivable Accrued liabilities 7,000 Cash Intangible assets 20,000 40,000 72,000 100,000 Inventory Long-term investments Long-term liabilities 75,000 Marketable securities Notes payable (short-term) Property, plant, and equipment 35,000 25,000 625,000 2,000 Prepaid expenses Oa. 1.4 Ob. 3.2 Oc. 1.9 Od. 2.1
The quick ratio, rounded to one decimal place, is approximately 2.0.
To calculate the quick ratio, we need to determine the total of quick assets and total current liabilities. Quick assets include cash, marketable securities, accounts receivable, and prepaid expenses, while current liabilities include accounts payable and accrued liabilities.
Given:
Accounts payable: $32,000
Accounts receivable: $7,000
Accrued liabilities: $20,000
Cash: $72,000
Marketable securities: $25,000
Prepaid expenses: $2,000
Total quick assets = Cash + Marketable securities + Accounts receivable + Prepaid expenses
Total quick assets = $72,000 + $25,000 + $7,000 + $2,000
Total quick assets = $106,000
Total current liabilities = Accounts payable + Accrued liabilities
Total current liabilities = $32,000 + $20,000
Total current liabilities = $52,000
Quick ratio = Total quick assets / Total current liabilities
Quick ratio = $106,000 / $52,000
Quick ratio ≈ 2.04 (rounded to one decimal place)
Therefore, the quick ratio, rounded to one decimal place, is approximately 2.0.
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QUESTION THREE [25] You are provided with information relating to Samora Sports Limited. The company sells sports equipment and repairs equipment for their customers. INFORMATION: 1. Figures extracted from the Pre-Adjustment Trial Balance on 30 June 2020: Ordinary share capital R 1 200 000 Fixed deposit 160 000 Trading stock 219 800 Debtors control 39 090 Equipment (for office and shop) 224 000 Accumulated depreciation on office and shop equipment 130 000 Mortgage loan from Credbank 281 200 Sales 1 680 000 Debtors allowances 17 000 Cost of sales 1 050 000 Service fee income (in respect of repair services) 297 140 Rent income 105 000 Interest income 11 200 Salaries and wages 240 750 53 890 Employers' contributions to Pension Fund (expense) Audit fees 30 000 Directors fees 230 000 Consumable stores 51 100 Bank charges 5 240 Sundry expenses 15 910 2. Adjustments and additional information: The auditors have identified the following errors or omissions: 2.1 The auditors are owed a further R28 000 after completing the audit. 2.2 Bank charges of R310 reflected on the June 2020 bank statement have not yet been entered in the books. 2.3 The stock count on 30 June 2020 revealed the following on hand: Trading stock, R202 000 Consumable stores, R900 2.4 The tenant paid the July and August rent in June 2020. The rent was increased by R700 per month on 1 January 2020. 2.5 Provide for depreciation on office and shop equipment at 10% p.a. on the diminishing-balance method. Note that new shop equipment costing R30 000 was purchased half-way through the financial year (this was properly recorded). 2.6 Interest on the loan was capitalised. The loan statement from Credbank on 30 June 2020 reflects the following: CREDBANK Loan statement on 30 June 2020 Balance on 1 July 2019 R332 800 Interest charged ? R 51 600 Monthly payments to Credbank in terms of the loan agreement (12 months x R4 300) Balance on 30 June 2020 R326 000 The interest expense for the year has not yet been entered in the books. 2.7 A credit note issued to a debtor, A Mona, dated 28 June 2020 was not recorded in the books. The credit note was for. Price reduction on unsatisfactory repair of a tennis racket, R540 2.8 Assume a company tax rate of 30% Required: Prepare the Statement of Comprehensive Income for the year ended 30 June 2020.
The statement of comprehensive income is a financial report that shows all income and expense transactions that a company has completed during an accounting period. It is used to calculate the net income of the business.
Given below is the statement of comprehensive income for the year ended 30 June 2020. Statement of Comprehensive Income for the year ended 30 June 2020 $ $ Sales 1,680,000 Less: Cost of Sales (1,050,000) Gross profit 630,000 Other income Rent income 105,000 Interest income 11,200 Service fee income (in respect of repair services) 297,140 413,340 Total Income 1,043,340 Less: Expenses Bank charges (5,240 + 310) 5,550 Consumable stores 51,100 Depreciation on office and shop equipment (22,400+ (194,000 × 10%)) 41,400 Salaries and wages 240,750 Employers' contributions to Pension Fund 53,890 Audit fees 30,000 Directors fees 230,000 Sundry expenses 15,910 Debtors allowances 17,000 Interest expense (51,600 x 11/12) 47,150 733,750 Profit before tax 309,590 Taxation (30%) 92,877 Profit for the year 216,713 The calculation of the amount of consumable stores used during the year can be found below.Cost of consumable stores used during the year = Cost of consumable stores on 1 July 2019 + purchases - cost of consumable stores on 30 June 2020= $1,200 + $52,000 - $900= $52,300Therefore, the amount of consumable stores used during the year is $52,300.
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A homeowner's tax statement lists the following mill rates for various municipal services: Tax Mill Rate Rate Schools 6.75 City 7.21 Water 0.92 Sewers 0.87 The homeowner paid $8937.50 in property taxes last year. What is the assessed value of his property? a $665,509 b $461,066 C $437.500 d $567,460 0000 Nitin is paid a base salary of $300 per week and commission at the rate of 2.5% for sales over $5000, 4% if his sales are over $10,000, and 4.5% if sales are over $25,000. How much will Nitin earn in a week in which his sales are $20,000? a $800 b $1100 $1200 Od $900
The assessed value of the homeowner's property is $665,509. For the second question about Nitin's earnings, we can calculate his total commission based on the sales threshold.
If Nitin's sales are $20,000, he falls into the second threshold of 4% commission rate.
To calculate the assessed value of the homeowner's property, we need to use the formula:
Assessed Value = Property Tax / Total Mill Rate
First, we need to find the total mill rate by adding up the individual mill rates for schools, city, water, and sewers. The mill rate is the amount of tax payable per dollar of the assessed value of the property.
Schools Mill Rate = 6.75
However, this is the assessed value before any exemptions or deductions. To find the final assessed value, we need to multiply this by the equalization rate, which is usually around 0.77 in most municipalities.
Final Assessed Value = Assessed Value x Equalization Rate
Final Assessed Value = $565.714 x 0.77
Final Assessed Value = $665,509
Therefore, the answer is (a) $665,509.
Commission = Sales x Commission Rate
Commission = $20,000 x 0.04
Commission = $800
Adding this to his base salary of $300, Nitin's total earnings for the week would be:
Total Earnings = Base Salary + Commission
Total Earnings = $300 + $800
Total Earnings = $1,100
Therefore, the answer is (b) $1,100.
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Amal received a Form 1099-DIV with a capital gain distribution of $250. Amal also received a Form 1099-B from the sale of 240 shares of AMS stock purchased for $3,700 plus a $36 commission fee on February 22, 2020. The net proceeds of the stock sale were $3,340 (the commission fee was $22) and the trade date was February 22, 2021. What are the amount and nature of Amal's gain (loss) on these transactions? Multiple Choice $374 short-term loss and $250 long-term galn $374 long-term loss and $250 short-term gain $396 long-term loss and $250 short-term gain $396 short-term loss and $250 long-term gain
The correct answer is $374 long-term loss and $250 long-term gain. The proceeds are less than the cost basis, Amal incurred a loss of $374 on the stock sale.
The amount and nature of Amal's gain (loss) on these transactions can be determined as follows:
Capital Gain Distribution:
Amal received a Form 1099-DIV with a capital gain distribution of $250. This capital gain distribution is considered a long-term gain since it is reported on Form 1099-DIV. Therefore, Amal has a $250 long-term capital gain.
Stock Sale:
Amal sold 240 shares of AMS stock. To calculate the gain or loss from the stock sale, we need to compare the proceeds from the sale to the cost basis.
Cost basis:
Purchase price of 240 shares of AMS stock: $3,700
Commission fee for the purchase: $36
Total cost basis: $3,700 + $36 = $3,736
Proceeds from the stock sale:
Net proceeds of the stock sale: $3,340
Commission fee for the sale: $22
Total proceeds from the sale: $3,340 + $22 = $3,362
To determine the gain or loss, we subtract the cost basis from the proceeds:
Gain (Loss) = Proceeds - Cost basis
= $3,362 - $3,736
= -$374
Since the proceeds are less than the cost basis, Amal incurred a loss of $374 on the stock sale.
In summary, the nature and amount of Amal's gain (loss) on these transactions are:
$374 long-term loss from the stock sale and $250 long-term gain from the capital gain distribution. Therefore, the correct answer is $374 long-term loss and $250 long-term gain.
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Question 10 (5 points) Explain the outcome and legal principles derived by the following case law a. Macura V Northern Assurance Co. Ltd. (1925) b. Tiep Thi To V Australian Associated Motor Insurers L
Macura v Northern Assurance Co Ltd (1925) is a famous case law that focuses on the concept of "reasonable apprehension of physical harm." The case involves the circumstances under which the driver of a vehicle is regarded to have acted in the "reasonable apprehension of physical harm" and how that may be a reasonable explanation for the driver's actions.
In this case, the insured's policy's conditions necessitated the insurer's authorization before the insured used the vehicle to take any passenger other than those specified in the policy. The insured agreed to bring a passenger home who was not included in the list of permitted passengers, without seeking permission. When the vehicle struck a wall and killed the passenger, the insurer declined coverage. However, the court held that the insured had acted in reasonable apprehension of physical harm, and the insurer's refusal to cover the policy was deemed illegal. The court observed that reasonable apprehension of physical harm was a recognized legal principle and that the insured had acted in a manner that could be considered reasonable in the situation. In such instances, the insured's use of the car is deemed outside the policy's restrictions, and the insurer is bound to provide coverage.
Tiep Thi To v Australian Associated Motor Insurers Ltd (1989) is a well-known case that resulted in the creation of the "grey areas" doctrine. The key issue, in this case, was whether the plaintiff was a passenger or a member of the public for insurance purposes. A passenger is defined as a person carried in a car, while a member of the public is defined as any other individual who may be impacted by a car in a public location. The plaintiff was standing between two parked cars when she was struck by the defendant's car. The defendant was the passenger in a vehicle that had been parked in the same street as the plaintiff. The court held that the plaintiff was not a passenger in the defendant's vehicle and, therefore, not eligible for coverage under the defendant's policy. As a result of the case, the "grey areas" doctrine was developed, which determines whether a person is a passenger or a member of the public. The doctrine considers the facts of each case and distinguishes between an individual who is closely linked with a car and one who is not. In conclusion, the Macura v Northern Assurance Co Ltd case law outcome and the legal principle derived from it concerned the notion of reasonable apprehension of physical harm. On the other hand, Tiep Thi To v Australian Associated Motor Insurers Ltd case law outcome created the "grey areas" doctrine.
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a. Macura v Northern Assurance Co. Ltd. (1925):This case is concerned with the need for a party seeking indemnity to give notice to the indemnifier of any loss or liability.
Facts: Mr. Macura had a policy of insurance with Northern Assurance Co. Ltd. covering damage to his car. He got into an accident on the road as a result of someone else's negligence. He didn't inform Northern Assurance of the incident for 11 months because he thought the other driver's insurance would cover the damages. Later he claimed for the loss under the Northern Assurance policy, but the claim was refused because he had not informed them of the incident. Legal principles: There are two legal principles established by this case :Assurance companies are only required to indemnify an insured against losses that they are aware of. If an insured doesn't inform their insurer of an incident that might give rise to a claim under their policy, the insurer is not liable to indemnify them. b. Tiep Thi To v Australian Associated Motor Insurers: This case is concerned with the meaning of "use" of a motor vehicle for the purposes of the Motor Vehicles (Third Party Insurance) Act. Facts: Mr To had an accident in his car while it was parked on a public highway. His car rolled down the hill and collided with another vehicle. Legal principles: The legal principle established by this case is that: In order to fall within the provisions of the Motor Vehicles (Third Party Insurance) Act, a motor vehicle must be "used" on a public highway, and this must be in connection with the user's legal rights as a road user. A vehicle parked on a public highway is not considered to be "used" for the purposes of the Act.
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Michael and Sarah are preparing to operate a small business which specialises in Australian country cookies. Michael tells you he plans to perform the administrative duties such as sending bills to customers and answering the phone orders. Sarah will cook and decorate the cookies. Michael and Sarah both want some involvement in the management and ownership of the business. Michael and Sarah are married but do not have any close family members. They intend to hire more staff and wish to see the business continue after their retirement. Sarah is aware that another operator has just been sued and was found liable for $1 million dollars in damages after some plastic was found in one of their specialty cookies. Michael and Sarah are unable to decide between a partnership or a company structure.
Required: You are asked to provide advice in IRAC format on how the venture should be structured according to Australian corporation law.
Based on the given scenario and considering the desire for involvement in management and ownership, hiring staff, and protecting personal assets from potential liabilities, it is advisable for Michael and Sarah to opt for a company structure.
Issue: The issue at hand is to determine whether Michael and Sarah should opt for a partnership or a company structure for their small business specializing in Australian country cookies, considering their involvement in management and ownership, hiring staff, and their desire for the business to continue after their retirement.
Rule: According to Australian corporation law, partnerships and companies are two common business structures available for entrepreneurs. A partnership is a relationship between two or more individuals who carry on a business together and share the profits, losses, and management responsibilities. On the other hand, a company is a separate legal entity, distinct from its owners, with limited liability and the ability to issue shares to raise capital.
Application: In this case, Michael and Sarah are married and want some involvement in the management and ownership of the business. They also intend to hire more staff and ensure the business continues after their retirement. They are concerned about potential liabilities, as highlighted by the recent lawsuit against another operator in the industry.
Considering their desire for involvement in management and ownership, a partnership structure would allow Michael and Sarah to have direct control and decision-making authority in the business. It would also enable them to share profits and losses according to their agreed-upon partnership agreement. However, in a partnership, the partners have unlimited liability, which means their personal assets could be at risk in case of legal claims or debts of the business.
On the other hand, a company structure would provide limited liability protection to Michael and Sarah. By incorporating their business as a company, they would create a separate legal entity responsible for its debts and liabilities. They could become directors and shareholders of the company, allowing them to have management control and ownership rights. Hiring staff and ensuring business continuity would be relatively easier as the company structure provides a more established and formalized framework.
Incorporating their small business as a company would provide them with limited liability protection, allowing them to separate their personal assets from the business's liabilities. This would provide a more secure and stable framework for their business operations, future growth, and eventual retirement plans. It is recommended that they consult with a legal professional or business advisor to ensure compliance with all relevant laws and regulations in establishing and operating their company.
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Rour company uses two measures of activity, routes and passengers in its cost formulas used for budgeting and performance evaluation. The cost formula for tour operating costs is $56,840 per month plus $2,886 per route plus $17 per passenger. The company expected in August to perform 87 routes and serve 260 passengers, but the actual activity was 92 routes and 262 passengers. The actual tour operating costs in August was $305,100. The spending variance for tour operating costs in August would be closest to Multiple Choice a. $21706 Unfavorable. b. $7.242 Unfavorablem. c. $14,464 Favorable. d. $7,242 Favorable. e. $21706 Favorable
e. $21,706 Favorable. The spending variance for tour operating costs in August would be closest to $21,706 Favorable.
To calculate the spending variance for tour operating costs, we need to compare the actual costs with the budgeted costs based on the actual activity levels. The cost formula for tour operating costs is given as $56,840 per month plus $2,886 per route plus $17 per passenger. The budgeted activity levels for August were 87 routes and 260 passengers, while the actual activity levels were 92 routes and 262 passengers. To calculate the budgeted tour operating costs, we can plug in the budgeted activity levels into the cost formula: Budgeted tour operating costs = $56,840 + ($2,886 * 87) + ($17 * 260) = $56,840 + $251,082 + $4,420 = $312,342. The actual tour operating costs in August were $305,100. Therefore, the spending variance is the difference between the actual costs and the budgeted costs: Spending variance = Actual costs - Budgeted costs = $305,100 - $312,342 = -$7,242. Since the spending variance is negative, it indicates a favorable variance. Therefore, the closest option is e. $21,706 Favorable.
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