1. False: External users of accounting information are not directly involved in running a company.
2. True: A budget can help uncover potential bottlenecks before they occur.
1. External users of accounting information are not directly involved in running a company. External users refer to individuals or entities outside the organization, such as investors, creditors, regulators, and analysts, who rely on accounting information for decision-making but do not have direct involvement in managing the company's operations.
2. One of the distinct advantages of a budget is indeed its ability to help uncover potential bottlenecks before they occur. By setting financial targets and allocating resources, a budget allows organizations to identify potential constraints or limitations in their operations, enabling proactive measures to address these bottlenecks and ensure smooth operations.
Advantages of a budget: A budget provides a financial plan for an organization, allowing it to set targets, allocate resources, and monitor performance. By identifying potential bottlenecks or constraints in advance, organizations can take corrective actions or allocate resources more effectively to prevent issues or disruptions in their operations. This proactive approach helps to improve efficiency, minimize risks, and enhance overall performance.
learn more about budget here:
https://brainly.com/question/31952035
#SPJ11
Three friends = 1, 2, 3 get together for a few drinks and decide to share the total bill equally. Friend 's preferences are represented by the utility function
(x, y) = 2 √x – y .
where x is the number of drinks that consumes and y is the amount of money that pays. Each drink costs $1.
(a) Describe the strategic game generated by this situation.
(b) How many drinks will these friends have at the Nash equilibrium of the game generated by this situation? Is the Nash equilibrium a dominant-strategy equilibrium? Explain.
(c) Is this Nash equilibrium efficient? Explain.
Please solve this by calculating this equation
(a) The strategic game generated by this situation is called a cooperative game as all the three friends agreed to share the total bill equally. It is a non-cooperative game where each friend has to choose a strategy without knowing what strategies are chosen by the other friends.
(b) The Nash equilibrium of the game generated by this situation is (4, $4).At this Nash equilibrium, each friend will consume four drinks, and pay $4 each. Therefore, the total cost will be $12, and each person will consume 4 drinks. This Nash equilibrium is a dominant strategy equilibrium.
The reason being, if one friend deviates from this strategy, then they will have to pay more to maintain the Nash equilibrium, which they will not want to do.(c) This Nash equilibrium is not efficient. This is because the total utility that the friends derive from this equilibrium is less than the maximum utility they could get from this situation.Suppose, if friend 1 increases their drink consumption from 4 to 5, then their utility will be (5, $3), and the utility of the other friends will be (3, $5). The total utility of all the friends will be 10.1 + 7.7 + 5.7 = 23.5, this situation has a maximum total utility of 23.5 which is greater than the total utility of the Nash equilibrium which is 18.6.
To know more about strategies visit:
https://brainly.com/question/31930552
#SPJ11
Tristan and Isolde were married and have one child, who is 19 years old and mentally disabled. Tristan and Isolde have separated, and the child lives with Tristan. Tristan wants child support from Isolde. Can Tristan obtain child support? Under what statute? Explain
In the case of Tristan and Isolde, the child is 19 years old and is suffering from a mental disability. Tristan is taking care of the child after the separation from Isolde. The question arises whether Tristan can obtain child support from Isolde or not.
The Uniform Marriage and Divorce Act (UMDA) is a uniform act that governs the marriage, divorce, and separation of individuals. This act has been adopted by many states in the U.S.
The UMDA provides that both parents have a duty to support their children. This duty exists irrespective of whether the parents are married or not. The UMDA provides guidelines for determining child support.
Therefore, if the state where Tristan and Isolde live has adopted the UMDA, then Tristan can obtain child support from Isolde. However, the amount of child support will depend on the guidelines provided in the UMDA. Tristan may have to provide evidence of his income, the expenses of the child, and Isolde's income to determine the amount of child support.
To know more about separation visit:
https://brainly.com/question/16774902
#SPJ11
which contractual regulation is a standard that provides guidance on what elements of a credit card transaction need protection and the level of expected protection?
The contractual regulation that provides guidance on the protection of credit card transactions and the level of expected protection is called the Payment Card Industry Data Security Standard (PCI DSS).
The Payment Card Industry Data Security Standard (PCI DSS) is a set of security standards developed by the major credit card companies (Visa, Mastercard, American Express, Discover, and JCB International) to ensure the secure handling of credit card information.PCI DSS defines the requirements for businesses that process, store, or transmit credit card data to protect cardholder information and prevent data breaches. It outlines specific measures that organizations must implement to maintain a secure environment, such as using firewalls, encrypting data transmissions, regularly updating security systems, and restricting access to cardholder data.
The standard also provides guidance on what elements of a credit card transaction need protection, such as cardholder data, sensitive authentication data, and transaction data.By complying with PCI DSS, businesses can enhance the security of credit card transactions and reduce the risk of data breaches, protecting both themselves and their customers.In summary, the Payment Card Industry Data Security Standard (PCI DSS) is the contractual regulation that guides the protection of credit card transactions and specifies the expected level of protection. It helps businesses ensure the security of cardholder data and prevent data breaches.
To know more about contractual visit:
https://brainly.com/question/13093817
#SPJ11
Conduct a research and discuss the meanings and the differences of the fields ‘PUBLIC BUSINESS LAW’ and ‘PRIVATE BUSINESS LAW’ in the concrete Zambian business context. Give a minimum of 3 practical examples for each category and describe the resulting obligations for the business owner. Apply the learned principles from the module and other researched materials, which dealt with the distinction of public law and private law.
Public business law refers to the legal rules, regulations, and legislation that regulate the conduct of business transactions between private individuals and the government or state in the public interest.
Private Business Law, on the other hand, refers to the legal rules, regulations, and legislation that govern the relationships between private entities, i.e., individuals and organizations.
What are the differences?Differences in Public and Private Business Law:
Public business law regulates business activities for the benefit of society as a whole. Private business law regulates business activities solely to protect private interests.
Public business law rules, regulations, and legislation can have an impact on public welfare, while private business law rules, regulations, and legislation are designed to protect individual business interests.
Practical Examples for Each Category:
Public Business Law
Examples of public business law include labor law, environmental protection law, taxation law, competition law, and corporate governance law.
Labor law requires employers to provide fair compensation to their employees, provide a safe and healthy work environment, and protect employees' rights to unionize.Environmental protection laws mandate that businesses take necessary measures to protect the environment and reduce their carbon footprint.Taxation laws require businesses to pay taxes to the government.Corporate governance laws mandate that companies should follow ethical standards and be transparent in their operations.
Private Business Law
Examples of private business law include contract law, tort law, property law, and intellectual property law.
Contract law governs the terms and conditions of contracts between businesses and individuals.Tort law governs how businesses should behave towards their customers, employees, and other third parties.Property law governs how businesses should use, transfer, or dispose of their property, including intellectual property.Intellectual property law governs the protection of intangible assets like trademarks, patents, and copyrights. Resulting Obligations for Business Owners:The obligation of a business owner in public business law is to comply with the set laws and regulations. Compliance helps to ensure that the business operates within the set rules and avoids legal issues.The obligation of a business owner in private business law is to respect the terms and conditions of contracts, be cautious to avoid actions that could result in damage to another party, protect their intellectual property, and respect property rights.
To know more on Business law visit:
https://brainly.com/question/31007030
#SPJ11
Explain how a firm in the short run will respond to the
following change: An increase in the marginal cost of the variable
input.
A firm operating in the short run will respond to an increase in the marginal cost of the variable input by reducing its output. In the short run, a firm may not be able to adjust all of its inputs in response to a change in the price of a single input. As a result,
it must make production decisions based on its existing inputs.The marginal cost of production rises as the price of the variable input increases. As a result, in the short run, the optimal production level will be lower than it was before the price increase.
As a result, the firm may decrease production to reduce its costs, which may lead to a decrease in revenue.A decrease in production is preferable to producing at a loss in the short run. In the long run, the firm may adjust its inputs to maintain or increase its production. However, in the short run, the firm may have to tolerate a decrease in production or even shut down if the input price is too high and it cannot produce at a profit.The short-run response to an increase in the marginal cost of the variable input will be to decrease output.
To know more about operating visit:
https://brainly.com/question/30581198
#SPJ11
Please draw and explain the life cycle path of hours worked for a person who, at age 40, suddenly wins 73 million dollar in the lottery.
What would be that life cycle path of hours worked if he always knew that he would win the lottery?
The life cycle path of hours worked for a person who, at age 40, suddenly wins 73 million dollars in the lottery could take a variety of paths depending on their financial goals, lifestyle, and other personal factors.
Initially, the person may choose to take a break from work and enjoy their newfound wealth.
However, after a period of relaxation and enjoyment, they may begin to seek new challenges and opportunities. They could start a new business venture, invest their money in the stock market or other investments, or pursue a new career.
The person's life cycle path may also depend on whether or not they always knew that they would win the lottery. If they did know that they would win, they may have already planned out their financial goals and retirement plans. They may have already established a financial portfolio and a plan for how they would use their winnings to meet their long-term financial needs.
Overall, the life cycle path of hours worked for a lottery winner is highly dependent on their personal goals and priorities. Some may choose to work less or retire early, while others may seek new challenges and opportunities. Ultimately, the goal is to achieve financial security and stability while also finding personal fulfillment and happiness.
To know more about venture visit:
https://brainly.com/question/28288667
#SPJ11
Find the size of each of 9 payments made at the end of each year into a 7% rate sinking fund which produces $33000 at the end of 9 years.
The size of each of the 9 payments made at the end of each year is $3,235.81.
To find the size of each payment, we can use the formula for the future value of an ordinary annuity. In this case, the future value is given as $33,000, the interest rate is 7%, and the number of periods is 9 years. By rearranging the formula, we can solve for the payment amount. Dividing the future value by the annuity factor will give us the size of each payment made at the end of each year.
learn more about annuity here:
https://brainly.com/question/32931568
#SPJ11
. All of the following are true with respect to the auditor's consideration of information other than the audited financial report that are included in a client's annual report except:
A. the auditor must consider whether the other information is consistent with the information contained in the audited financial statements.
B. the auditor is under no obligation to perform audit procedures on this other information.
C. the auditor must perform audit procedures on this other information.
D. the auditor must request that material inconsistencies be corrected.
The option that is not true with respect to the auditor's consideration of information other than the audited financial report that is included in a client's annual report is "C. the auditor must perform audit procedures on this other information.In conclusion, Option C, the auditor must perform audit procedures on this other information, is not true.
"Explanation:Auditor's report is issued when the audit of financial statements is completed. In the annual report of a client, there is information other than audited financial statements. The auditor's consideration of other information included in an entity's annual report may increase the risk of liability to the auditor if there are material misstatements or inconsistencies in such information.The auditor's consideration of information other than audited financial statements are as follows:The auditor must consider whether the other information is consistent with the information contained in the audited financial statements.The auditor is under no obligation to perform audit procedures on this other information.The auditor must request that material inconsistencies be corrected.In conclusion, Option C, the auditor must perform audit procedures on this other information, is not true.
To know more about audit procedures visit:
https://brainly.com/question/32596592
#SPJ11
You are loaned $100,000 and pay this back by making constant payments at the end of each year for 40 years. If effective annual interest is i=3% then find when the outstanding balance first falls below $50,000
The given problem is about the repayment of a loan of $100,000 by making constant payments at the end of each year for 40 years with an effective annual interest of 3%.
We have to find out when the outstanding balance first falls below $50,000.Let's find out the constant payment, C:
[tex]PV = C {(1 - (1 + i)⁻ⁿ)/i}[/tex]
Where, PV = present value of the loan
i = effective annual interest
n = number of payments required
C = constant payment
We have, PV = $100,000i [tex]= 3% = 0.03n = 40C = PV/ {(1 - (1 + i)⁻ⁿ)/i}= $100,000/ {(1 - (1 + 0.03)⁻⁴⁰)/0.03}= $100,000/22.191= $4,507.81[/tex]
Therefore, constant payment, C = $4,507.81
Now, let's find out the outstanding balance when the number of payments made = 30 (after 30 years):Annuity due formula:
we will use n = 30 and multiply the result by (1 + i) to find out the outstanding balance just after the 30th payment.
[tex]C {(1 + i)ⁿ - 1/i} x (1 + i)= $4,507.81 {(1 + 0.03)³⁰ - 1/0.03} x (1 + 0.03)= $4,507.81 {(2.208 - 1)/0.03} x 1.03= $4,507.81 {1.208/0.03} x 1.03= $4,507.81 x 40.268= $181,965.16[/tex]
Outstanding balance after 30th payment = $181,965.16
To know more about repayment visit:
https://brainly.com/question/31483682
#SPJ11
Suppose the exchange rate between U.S. dollars and Swiss francs is CHF 1.41 = USD 1.00, and the exchange rate between the U.S. dollar and the euro is USD 1.00 = EUR 1.64. Solve for:
CHF/EUR
UER/CHF
2. Suppose that 1 British pound currently equals 1.62 U.S. dollars and 1 U.S. dollar equals 1.62 Swiss francs. What is the cross rate of Swiss francs to British pound?
3. A trader observes that, in the spot exchange market, $1 can be exchanged for 9 Mexican pesos or for 111.23 Japanese yen. What is the cross-rate between the yen and the peso, that is, how many yen would you receive for every peso exchanged?
Let us calculate the cross-rate of CHF/EUR using the given rates: CHF 1.41 = USD 1.00 and USD 1.00 = EUR 1.64. We need to calculate the rate CHF 1 = EUR x.
We need to calculate the rate 1 Swiss franc = x British pound. We will first convert 1 U.S. dollar to Swiss francs: 1/1.62 = 0.6173 Swiss francs We will now convert this Swiss franc to British pound: 0.6173/1.62 = 0.3812 Swiss francs is equal to 0.3812 British pound.3.
Let us calculate the cross-rate between the yen and the peso using the given rates: 1 = 9 Mexican pesos or 1 = 111.23 Japanese yen. We need to calculate the rate of yen 1 = x Mexican peso. We will first convert $1 to Mexican peso: 1/9 = 0.1111 Mexican pesoWe will now convert this Mexican peso to yen: 0.1111 × 111.23 = 12.3652
Therefore, 12.3652 yen would be received for every peso exchanged.
To know more about convert visit:
https://brainly.com/question/33168599
#SPJ11
The Task - Part 1 You are going to be given scenarios, which require some form of leadership competence. You will respond to all three. Responses should be at minimum a half a page in length (double spaced). Working individually or in pairs, consider the role of a leader in the situation you are given and how leadership should address the situation. Decide what leadership style (autocratic, democratic, laissez-faire) is most appropriate given the situation. You should discuss the advantages and disadvantages of these approaches and conclude why the approach you chose is best. You should structure your answer to Part 1 using the following headings: 1. Summary of the Situation 2. Leadership Style Chosen (include pros/cons) 3. Conclusion The Situations 1. You are the owner and manager of a new McDonald's restaurant about to have your first staff meeting and training session prior to opening in a little over one week. Most of your new hires are local high school students aside from four experienced shift managers. 2. A client has contacted your firm of highly skilled, highly educated, commercial designers and asked them to come up with a new logo that represents a change in the direction the firm wishes to go in. The new logo and associated corporate branding of headed paper, publications, packaging and so on is set to coincide with the launch of the re-branding in one years time at the start of the client company's new season sales drive. 3. Following a Health and Safety Executive (HSE) visit, a chemical company has been warned that its safety procedures in parts of the plant are lacking. It must take steps to remedy these weaknesses within three weeks or face having the plant shut down. The guidelines for remedying the weaknesses are readily available in detailed HSE publications
Leadership competencies are essential for leaders in any organization, especially when faced with complex situations that require decision-making. This essay will analyze three leadership scenarios that require competent leadership.
1. Summary of the Situation
The situation at hand is the opening of a new McDonald's restaurant. There is a need for a staff meeting and training session before opening in just over one week. Most of the new hires are local high school students, while four experienced shift managers are included.
2. Leadership Style Chosen
The best leadership style for the situation at hand is autocratic leadership. This leadership style involves the leader making all decisions without input from other members of the team. In the given scenario, there is a need to establish a chain of command, with the leader at the top. The autocratic style provides clear instructions for each employee to follow. This method is efficient in a crisis or where a quick decision is needed.
3. Conclusion
In conclusion, the scenario presented requires an effective leadership style that can ensure the training of the staff, preparing the restaurant for the opening. The best leadership style to use is the autocratic style because of the urgency of the situation. The style is ideal for a crisis, where a decision needs to be made quickly, as the leader makes all the decisions.
To Know more about staff meeting
https://brainly.com/question/32427068
#SPJ11
In a market, the private supply curve is given by P=2+3.1Q and the private demand curve is given by P=71−4.8Q. The socially optimal quantity is 6 . What is the value of the marginal external benefit / cost? In case of a marginal external cost, report a negative number.
The value of the marginal external benefit / cost is -21.6. Since it is a marginal external cost, the value is negative.
In a market, the private supply curve is given by
P = 2 + 3.1Q
and the private demand curve is given by
P = 71 − 4.8Q.
The socially optimal quantity is 6. Let’s find out the value of the marginal external benefit / cost.
First, we need to calculate the marginal social cost (MSC) and marginal private cost (MPC).
We know that
MSC = MPC + Marginal External Cost (MEC)
Let’s calculate the value of MSC:
MSC = 2 + 3.1Q + MEC
Also, the marginal social benefit (MSB) is given by
MSB = 71 − 4.8Q
The socially optimal quantity is 6,
so substitute Q = 6 in MSB to find out the value of MSB when Q = 6:
MSB = 71 − 4.8(6)
MSB = 71 − 28.8
MSB = 42.2
Now, we need to find the value of Q where
MSB = MSC.
42.2 = 2 + 3.1Q + MEC
40.2 = 3.1Q + MEC
Now, we need to find the value of MEC when
Q = 6.40.2 = 3.1(6) + MEC
40.2 = 18.6 + MEC
MEC = 21.6
Know more about the marginal external benefit
https://brainly.com/question/8136407
#SPJ11
When evaluating campaign ideas, which piece of information is crucial? the creative brief the element of story-telling the brand character the terms of engagement
When evaluating campaign ideas, the creative brief is the crucial piece of information. It serves as the foundation for the entire campaign by providing direction and context. It outlines the goals, target audience, messaging, and other critical information for the campaign.
In order to evaluate campaign ideas, a clear understanding of the creative brief is necessary. The creative brief is the document that outlines the goals, target audience, messaging, and other critical information for the campaign. This document serves as the foundation for the entire campaign by providing direction and context.
Therefore, it is crucial to evaluate campaign ideas based on how well they align with the creative brief, as they need to be consistent with the campaign's overall goals, messaging, and target audience. By doing so, the ideas can be evaluated based on their potential to achieve the desired outcomes.
The process of evaluating campaign ideas involves a wide range of factors, from the creative concept to the budget, target audience, messaging, and more. However, one crucial piece of information that is often overlooked is the creative brief.
This document serves as the foundation for the entire campaign by providing direction and context. It outlines the goals, target audience, messaging, and other critical information for the campaign. Therefore, when evaluating campaign ideas, a clear understanding of the creative brief is necessary to ensure that the ideas align with the campaign's overall goals, messaging, and target audience.
By doing so, the ideas can be evaluated based on their potential to achieve the desired outcomes. Furthermore, it is essential to evaluate campaign ideas based on how well they align with the creative brief, as they need to be consistent with the campaign's overall goals, messaging, and target audience.
In conclusion, the creative brief is the crucial piece of information when evaluating campaign ideas as it serves as the foundation for the entire campaign, providing direction and context.
To learn more about target audience
https://brainly.com/question/29548158
#SPJ11
A local tire wholesale distributor sells on average $6,500 of inventory daily to retail tire shops. The distributor generally carries about $250,000 in inventory. How many days-of-supply does the distributor have? How many times a year does the distributor turn over their inventory?
The parent company to the tire distributor above owns a national chain of distributors on the west coast of the United States. Last year, they posted the following numbers in their financial filings.
Inventory = $182 Million (cost to acquire)
Revenue = $9,543 Million
COGS = $5,389 Million
Calculate days-of-supply and annual inventory turns for the parent company.
To calculate the days-of-supply and annual inventory turnover for the parent company, we need to use the following formulas:Days-of-Supply = (Average Inventory / Average Daily Sales)
Inventory Turnover = (COGS / Average Inventory)For the local tire wholesale distributor:Average Daily Sales = $6,500Average Inventory = $250,000Days-of-Supply = ($250,000 / $6,500) ≈ 38.46 days
Inventory Turnover = ($5,389 Million / $182 Million) ≈ 29.61 times
For the parent company:COGS = $5,389 MillionAverage Inventory = $182 MillionDays-of-Supply = ($182 Million / ($9,543 Million / 365 days)) ≈ 7.01 daysInventory Turnover = ($5,389 Million / $182 Million) ≈ 29.61 times
Therefore, the parent company has approximately 7.01 days-of-supply and an annual inventory turnover of around 29.61 times.
learn more about company here :
https://brainly.com/question/30532251
#SPJ11
Saturn Tech has a convertible bond outstanding, trading in the marketplace at 5835 . The par value is $1,000, the coupon rate is 7 percent, and the bond matures in 25 years. The convereion price is 52 , and the company's comman stock is selling for 51 per share. Interest is paid annually. Assume interest rates in the market (yeld ta maturity) are 7 percent. a. What is the conversion value? $ Round your ariswer to the nearest cent b. What is the pure bond component of this convertible bond? s Round your answer to the nearest cent Warrants. Delta Ltd. has warrants outstanding, which are selling at a $12 premium above intrinsic (or minimum) volue. Each warrant allows its owner to purchase 1 shares of common stock at $38. If the common stock currantly selis for s25. What is the warrant price? Round your answer to the nearest dollur Portfolio of two anssets (inverse). An investment portfolio has 36% invested in stock A and 64% invested in stock B. The standard deviotions of A end 8 are 14% and 18%, respectively, and the portfolio's standard deviation is 12%, What is the correiation coefficient between the two stocks? Round yoed answer to two decimats
a. Calculation of the conversion value of the bond is as follows:Conversion value = conversion ratio * market price per shareConversion ratio is given as the ratio of the par value to the conversion price. So,Conversion ratio = par value / conversion price = $1000 / $52 = 19.23
Market price per share is given as $51.So, Conversion value = 19.23 * $51 = $981.73 (approximately)Therefore, the conversion value is $981.73 (rounded to the nearest cent).b. Calculation of the pure bond component of the bond is as follows:First, calculate the annual interest payment as Coupon rate * Par value = 7% * $1000 = $70.Now, calculate the present value of the bond using the given interest rate, maturity period, and interest payment
Present value = (Annual interest payment / YTM) * [1 - 1 / (1 + YTM)^(number of years to maturity)] + Par value / (1 + YTM)^(number of years to maturity)where YTM is the yield to maturity.
Given portfolio standard deviation: Portfolio standard deviation = 12% = 0.12
Let's assume the correlation coefficient between stocks A and B is denoted by 'r'.The equation to be solved is: r = (0.36 * 0.14)^2 + (0.64 * 0.18)^2 + 2 * 0.36 * 0.64 * r
where we substitute the given values:
r = (0.02016 + 0.066048 + 0.0813072 - 0.018432r) / 0.078336r * 0.078336
= 0.1694812
r = 0.1694812 / 0.078336
= 2.16 (rounded to two decimal places)
Therefore, the correlation coefficient between the two stocks is 2.16 (rounded to two decimal places).
To know more about Conversion visit :
https://brainly.com/question/9414705
#SPJ11
Lawrence has tax-adjasted trading profit from seल-employment of E170,000 for 2020/21 He has brought forward unrelieved trading losves of $24.500. How much are his total National insurance contributions for 2020/21? 55,555 E5.714 E6.204 E6,045
Self-employed individuals in the UK are required to pay National Insurance (NI) contributions based on their taxable trading profits. In 2020/21, the NI rate for self-employed individuals was 9% of profits between £9,501 and £50,000, and 2% on profits over £50,000
.Lawrence had a tax-adjusted trading profit of £170,000 for 2020/21 and brought forward unrelieved trading losses of £24,500. To calculate his total National Insurance contributions, we need to first determine his taxable trading profits for the year.
Taxable trading profit = trading profit - unrelieved trading losses
Taxable trading profit = £170,000 - £24,500Taxable trading profit
= £145,500Since £145,500 is above the upper limit for NI contributions,
Lawrence's total NI contributions for 2020/21 would be 9% of his
taxable trading profit between £9,501 and £50,000, and 2% on the amount over £50,000.
Total NI contributions = (9% × (£50,000 - £9,501)) + (2% × (£145,500 - £50,000))
Total NI contributions = (£4,275.99) + (£1,910)Total NI contributions = £6,185.99
Lawrence's total National Insurance contributions for 2020/21 are approximately £6,186. The answer is option C: E6.204.
To know more about required visit:
https://brainly.com/question/2929431
#SPJ11
Kim is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. Right now Kim is living at home and works in a shoe store, earning a gross income of $1,010 per month. Her employer deducts $150 for taxes from her monthly pay. Kim also pays $183 on several credit card debts each month. The loan she needs for chiropractic school will cost an additional $157 per month. Help Kim make her decision by calculating her debt payments-to-income ratio with and without the college loan. (Remember the 20 percent rule) (Enter your answers as a percent rounded to 2 decimal places.)
Ratio with college loan = debt payment to income ration (39,53%)
Ratio without college loan = debt payment to income ration (21,27%)
Debt payment to income ratio can be calculated by dividing the total monthly debt payments by the monthly gross income. For the calculation of the debt payments-to-income ratio with and without the college loan for Kim,
we can use the following steps:
Given,Gross income per month (Kim's earnings) = $1010Taxes deducted by the employer per month = $150Credit card debts per month = $183Loan for Chiropractic School = $157 a month
Without College Loan:
Total monthly debt payments = $150 + $183 = $333
Debt payment-to-income ratio =
(Total monthly debt payments / Gross monthly income) x 100= ($333 / $1010) x 100 = 33.03%
(Rounded to 2 decimal places)
Since the debt payment-to-income ratio is 33.03% which is below the 20 percent rule, Kim can afford a loan she needs in order to go to chiropractic school.
With College Loan:
Total monthly debt payments = $150 + $183 + $157 = $490
Debt payment-to-income ratio =
(Total monthly debt payments / Gross monthly income) x 100= ($490 / $1010) x 100 = 48.51%
(Rounded to 2 decimal places)Since the debt payment-to-income ratio is 48.51% which is more than the 20 percent rule, Kim should not opt for the loan that she needs for chiropractic school.
Therefore, we can conclude that the debt payment-to-income ratio with the college loan is 48.51% and without the college loan is 33.03%.
The ratio with college loan exceeds the 20 percent rule whereas the ratio without college loan lies below the 20 percent rule.
Hence, Kim should not go for a loan.
To know more about payments-to-income visit:
https://brainly.com/question/32784158
#SPJ11
Analyze a companv's liquidity principally by examining
A. The relationship between a company's current assets and its current liabiles.
R. The relationship between owners' equity and current liabilities
c. The rate at which a company is funding operating costs with debt as opposed to owners' equity.
D. Industry liquidity trends
Industries are distinctive in such financial characteristics as:
I. Asset distribution I. Asset Turnover Ill. Profitability IV. Leverage and liability structure
A. I&II
B. II& III
C. I,I, & IV
D. I, II, Ill, & IV
All of the following ratios are used to measure leverage in a business EXCEPT:
A. Total liabilities/ net worth
B. Net fixed assets/ net worth less intangible assets
C. Total assets/ total liabilities less intangible assets
D. Total liabilities less subordinated debt/ net worth plus subordinated debt
Answers the question: How is a company's net worth concentrated, and what kinds of assets would need to be liquidated to satisfy all creditors?
A. Debt-to-Tangible Net Worth
B. Debt-to-Worth
c. Net Fixed Assets to Tangible Net Worth
D. Leverage Considering Subordinated Debt as Net Worth
If a business reports an increase in working capital from one year to the next, which or the rollowing are true about the business?
1. The business has more current assets to meet current liabilities than in the prior year Il. Current assets have more support from long-term funding sources than in the prior year II. The business has lower noncurrent assets than in the prior year IV. The business has higher levels of cash and equivalents than in the prior
year
A. I&II
B. I& Ill
C. Ill. &IV
D. Il, IlI, & IV
Leverage measures DO NOT:
I. Determine repayment ability. Il. Indicate if asset and liability levels are appropriate. IIl. Measure cash flow. IV. Provide a means of gauging the degree of risk associated with lending to the company.
A. I&II
B. II & III
C. I, II, & Ill
D. III,IV
What is the current ratio for a company with:
*Total current assets of 9,376 •Total noncurrent assets of 18,227 •Total current liabilities of 3,490 •Total noncurrent liabilities of 10,157
A. 0.37
B. 2.69
c. 1.79
D. 5.22
To calculate effective tangible net worth, an analyst should make all of the following adjustments EXCEPT:
A. Subtract intangible assets from net worth
B. Subtract subordinated debt from liabilities
c. Add intangible assets to liabilities
D. Add subordinated debt to net worth
When assessing the liquidity of a company, which of the following is the most conservative measure?
A. Net working capital
B. Quick ratio
c. Current ratio
D. Working capital/sale
A company with a liability structure that is well matched to its asset distribution can usually operate with
A. higher leverage
B. lower leverage
c. no leverage
D. increased liquidity
5. When evaluating a company's current assets, which of the following are expected to convert to cash during the operating cycle?
I. Accounts receivable I. Inventory Ill. Prepaid expenses IV. Deferred tax assets
A. 1&11
B. I&
c. 1, 11, & III
D. I, I, III, & IV
Which of the following circumstances may increase a company's leverage?
I. The company borrows to buy back a retiring owner's stock in the company Il. The company shifts its liabilities from mostly long-term to mostly current Ill. The company increases its net worth by retaining profits without increasing assets IV. The company has three years of losses
A. I&Il
B. 11& Ill
c. 1& IV
D. II1 & IV
Answers the question: How much could current assets shrink in value from balance sheet amounts before they would be inadequate to cover current liabilities?
A. Quick Ratio
B. Current Ratio
c. Working Capital
D. Debt-to-Worth
Of the following businesses, which is most likely to have the highest percentage of its assets in the form of fixed assets?
A. A company that makes auto parts
B. A company that distributes beverages
C. A company that sells children's clothing
D. A company that provides decorating services
Analyze a company's liquidity principally by examining: Answer: A. The relationship between a company's current assets and its current liabilities.
Industries are distinctive in such financial characteristics as:
Answer: D. I, II, III, & IV.
All of the following ratios are used to measure leverage in a business EXCEPT:
Answer: C. Total assets/ total liabilities less intangible assets.
Answers the question: How is a company's net worth concentrated, and what kinds of assets would need to be liquidated to satisfy all creditors?
Answer: D. Leverage Considering Subordinated Debt as Net Worth.
If a business reports an increase in working capital from one year to the next, which of the following are true about the business?
Answer: C. III. & IV.
Leverage measures DO NOT:
Answer: D. III, IV.
What is the current ratio for a company with:
Total current assets of 9,376
Total noncurrent assets of 18,227
Total current liabilities of 3,490
Total noncurrent liabilities of 10,157
Answer: C. 1.79
To calculate effective tangible net worth, an analyst should make all of the following adjustments EXCEPT:
Answer: C. Add intangible assets to liabilities.
When assessing the liquidity of a company, which of the following is the most conservative measure?
Answer: B. Quick ratio.
A company with a liability structure that is well matched to its asset distribution can usually operate with:
Answer: A. higher leverage.
When evaluating a company's current assets, which of the following are expected to convert to cash during the operating cycle?
Answer: C. I, II, & III.
Which of the following circumstances may increase a company's leverage?
Answer: A. I & II.
Answers the question: How much could current assets shrink in value from balance sheet amounts before they would be inadequate to cover current liabilities?
Answer: A. Quick Ratio.
Of the following businesses, which is most likely to have the highest percentage of its assets in the form of fixed assets?
Answer: D. A company that provides decorating services.
Learn more about current assets here:
https://brainly.com/question/14659041
#SPJ11
exclusionary workplace practices are likely to affect legal outcome but not employee attitudes. a) true b) false
The statement is false. Exclusionary workplace practices can have a significant impact on both legal outcomes and employee attitudes. The statement is false.
Legal Outcome: Exclusionary workplace practices, such as discrimination, harassment, or unfair treatment, can lead to legal consequences for employers. Laws and regulations are in place to protect employees from discriminatory practices, and if these practices are proven, legal action can be taken. Employees who experience exclusionary practices may file complaints, initiate lawsuits, or seek legal remedies to address the situation. The legal outcome can result in financial penalties, compensation for affected employees, or required changes to workplace policies and practices.
Employee Attitudes: Exclusionary workplace practices can have a profound impact on employee attitudes, job satisfaction, and overall well-being. When employees experience discrimination or unfair treatment, it can lead to feelings of demoralization, frustration, and decreased motivation. Exclusionary practices can create a hostile work environment, erode trust, and contribute to a toxic workplace culture. Employees may become disengaged, experience higher levels of stress, and have lower levels of job satisfaction. These negative attitudes can impact productivity, employee retention, and overall organizational performance. It is important for employers to foster an inclusive and respectful work environment to ensure legal compliance and promote positive employee attitudes. By addressing exclusionary practices and promoting diversity, equity, and inclusion, organizations can not only avoid legal consequences but also cultivate a healthier and more productive workforce.
To learn more about, Exclusionary workplace, click here, https://brainly.com/question/29544396
#SPJ11
Complete the following.(Round 1-2 to nearest whole number, 3 to one deicmal place, and 4-5 to three decimal places)
The price of a house is $125,000. The price goes up 4%. What is the new price? $
A poll discovers that 65% of 1000 people polled had Blugett's Disease Syndrome. How many of the polled people had the syndrome?
Smith & Co. was selling widgets for $85 each. Smith raised the price by 20%, then later lowered the price by 20%. What is the new price for each widget?
The answer is, the new price of each widget will be $81.6.
How to find?Here is the solution to your problem:
1. The price of a house is $125,000.
The price goes up 4%. What is the new price? $
To find the new price, we need to add 4% of the original price to the original price.
4% of $125,000 is:
0.04 * $125,000 = $5,000
The new price will be:
$125,000 + $5,000 = $130,000
Rounding this to the nearest whole number gives: $130,000 (rounded to the nearest whole number)
2. A poll discovers that 65% of 1000 people polled had Blugett's Disease Syndrome. How many of the polled people had the syndrome?
If 65% of 1000 people polled had Blugett's Disease Syndrome, we can calculate this as follows:
65/100 x 1000 = 650
So, 650 of the polled people had the syndrome.
3. Smith & Co. was selling widgets for $85 each. Smith raised the price by 20%, then later lowered the price by 20%. What is the new price for each widget?
First, Smith raised the price by 20%. This means the new price was:
1.2 x $85 = $102
Next, Smith lowered the price by 20%. This means the final price will be:
0.8 x $102 = $81.60
Rounding this to one decimal place gives: $81.6
Therefore, the new price of each widget will be $81.6.
To know more on Disease visit:
https://brainly.com/question/943439
#SPJ11
according to the modern marketing concept, what is required for an organization to provide superior customer value to customers?
A company needs to concentrate on providing higher customer value to its clients, per the modern marketing idea. There are a few essential components needed to accomplish this.
First and foremost, the business must fully comprehend the demands, desires, and preferences of its target market. This necessitates in-depth market analysis and customer insights. Second, the company must create and provide goods and services that, in terms of features, quality, and advantages, meet or surpass client expectations. Thirdly, the value proposition should be communicated to the target audience through efficient communication and advertising tactics. Last but not least, continual customer relationship management and improvement initiatives are required to guarantee that the company consistently provides value and upholds customer pleasure and loyalty.
learn more about company here:
https://brainly.com/question/30532251
#SPJ11
ANSWER ALL QUESTIONS Use the following production function and parameters in the Solow growth model to answer questions 1-2 for a hypothetical economy: Y=4K 1/4
(AL) 3/4
; population growth rate is 2.1%; saving rate is 20%; depreciation rate is 7%, and technological progress is 1.1%. 1. There is an over-accumulation of capital in the economy so the saving rate should be reduced. 2. The saving rate needed to reach the golden rule level of capital per effective labour is 0.25 Use the following parameters in the IS-LM model to answer questions 3−5 : λ 1
=8/3,λ 2
=8/9,β 1
=1/50,β 2
=1/40, interest elasticity of investment =50, marginal propensity to consume =3/4, marginal tax rate =1/5 and P=1.1 : 3. Equilibrium values of income and interest rates are 1856 and 7.65 units respectively if autonomous aggregate demand and nominal money supply are 630 and 198 units respectively. 4. Fiscal policy is twice as effective as monetary policy. 5. If government increases it spending by 160 units, investment will be crowded out by 200 units.
1. False. There is under-accumulation of capital in the economy. The saving rate is not enough to achieve the steady-state level of capital per effective labor, which is why it should be increased. If there were an over-accumulation of capital, capital stock per worker would already be too high.
2. True. The golden rule level of capital per effective labor (k*) is given by
[tex]k* = (s/(n+δ+g))^(1/θ-1),[/tex]
where s is the saving rate, n is the population growth rate, δ is the depreciation rate, g is the technological progress rate, and θ is the output elasticity of capital. Plugging in the given values, we get
[tex]k* = (0.2/(0.021+0.07+0.011))^(1/(3/4)-1) = 0.25.[/tex]
3. True. The IS equation is Y = C(Y-T)+I(r)+G and the LM equation is M/P = L(r,Y), where Y is income, C is consumption, T is taxes, I is investment, G is government spending, M is the nominal money supply, P is the price level, L is money demand, and r is the interest rate. Solving the equations, we get Y = 1856 and r = 7.65.
4. True. Fiscal policy is more effective than monetary policy in the IS-LM model because it directly affects aggregate demand. If the government increases spending, it shifts the IS curve to the right, leading to an increase in income and interest rates. If the central bank increases the money supply, it shifts the LM curve to the right, leading to a decrease in interest rates and an increase in income.
5. False. An increase in government spending will shift the IS curve to the right, leading to an increase in income and interest rates. This will increase investment, not crowd it out. The crowding out effect occurs when the increase in government spending leads to an increase in interest rates, which reduces investment.
To know more about depreciation visit :
https://brainly.com/question/17827672
#SPJ11
The following is a table of the data for a database system with its field names and example of the values in each field. The example data contains 4 records. The table is not normalized. II Put table in Third normal form. List the table names for each table using ALL CAPS. List all the attributes (fields) in each table using lower case letters. Identify the key field or fields in each table by underlining the particular field. Also show foreign key relationships between the tables with an arrow. If you want to do it in steps by putting it in First Normal form, then second normal form and then third normal form you may do so. But be sure to label your Third normal form answer. I suggest that you design and label your tables with their fields (attributes), primary key field(s), and foregn key relationships on paper before you complete the multiple response questions. A multiple response question (labeled "Choose all that apply") has at least one correct letter selection, but the correct answer may require selecting more than one correct letter. Also some questions are worth more points than others. The definitions of the normal forms are given below: First Normal Form (1NF) contains no one to many relationships from the key to nonkey fields (no repeating groups.) Second normal form (2NF) takes 1NF and makes sure that all attributes are determined by a full key (not a partial key) in any given table. 3NF adds to this by eliminating all transitive dependencies (a nonkey field does not determine any other nonkey field) within any table. How many tables should there be to satisfy for 3rd normal form for all this data? (2 points) 3
Based on the information provided, the exact table names, attributes, primary keys, and foreign key relationships cannot be determined. However, multiple tables would be needed to satisfy the third normal form (3NF).
We can move forward with normalizing the table into the third normal form (3NF) based on the information provided. Let's walk through the process of normalization step by step.
1NF, or First Normal Form
We need to get rid of any repeated groups and make sure that each field has atomic values in order to reach 1NF. We are unable to identify the repeated groups or the relevant variables because it appears that the given data is not provided. Since the table already satisfies 1NF, we'll presume that it does so.
2NF, or Second Normal Form
We must make sure that there are no partial dependencies between any characteristics and the primary key in order to accomplish 2NF. Again, we cannot identify the dependencies without the real data. Determining that the table already fulfils 2NF is what we'll do.
Third Normal Form (3NF): To obtain 3NF, all transitive dependencies inside the table must be removed. The dependencies cannot be identified without the relevant data. Although the table is not normalized and there are four rows, it is likely that transitive dependencies exist.
As a result, we are unable to identify the precise table names, characteristics, primary keys, or foreign key associations based on the information supplied. However, there should be several tables to satisfy the 3NF.
Learn more about third normal form (3NF) here:
https://brainly.com/question/32616662
#SPJ11
If you buy 1 million face value 180 -day T-bill at a discounted yield of 5% 1. What is the price of the bill? 2. what is the SIY on the bill? 3. what is the BEY on the bill? 4. Suppose you sold the bill after 30 days at a price of $977,000 what is your holding period yield? Did interest rates rise or fall over the holding period? 5. What is the profit or loss if you financed the bill with a 30 -day term repo at a repo rate of 5.5% ? Assume the bill will be sold at the end of 30 days at a discount yield of 5.50%
1. Price of the bill :The price of the bill can be found using the formula, Price = Face value / (1 + (r × t/360))where,Face value = $1,000,000r = Discount yield = 5% = 0.05t = 180 days = 0.5 years Putting the values in the formula, Price = [tex]$1,000,000 / (1 + (0.05 × 0.5))= $980,392.16[/tex]Therefore, the price of the bill is $980,392.16.2.
Therefore, the BEY on the bill is 11.46%.4. Holding period yield:Given,Price at which the bill was sold = $977,000Price of the bill = $980,392.16Therefore, the holding period yield can be found using the formula, Holding period yield = [(P1 / P0) − 1] × (360 / t)where,P0 = Price at which the bill was purchased = $980,392.16P1 = Price at which the bill was sold = [tex]$977,000t = 30 days = 0.083[/tex]years Putting the values in the formula,Holding period yield =[tex][(977,000 / 980,392.16) − 1] × (360 / 0.083)≈ −10.44%[/tex]Therefore, the holding period yield is -10.44%.
Since the holding period yield is negative, we can say that the interest rates rose over the holding period.5. Profit or loss:Given,Repo rate = 5.5% = 0.055Discount yield at the end of 30 days = 5.5% = 0.055Face value = $1,000,000Price at which the bill was sold = $977,000Using the formula,Price = Face value / (1 + (r × t/360))where,t = 30 days = 0.083 yearsPutting the values in the formula,[tex]977,000 = 1,000,000 / (1 + (r × 0.083))r ≈ 0.024[/tex]Therefore, the effective annual yield of the bill =[tex]2 × [(1 + 0.05) × (1 + 0.024)] − 1= 7.58%.[/tex]
Since the effective annual yield is greater than the repo rate, it would be unprofitable to finance the bill with a 30-day term repo at a repo rate of 5.5%. The loss would be equal to the difference between the effective annual yield and the repo rate, which is 7.58% - 5.5% = 2.08%. Therefore, the loss would be 2.08% of the face value of the bill, which is $20,800. Answer:1. The price of the bill is $980,392.16.2. The SIY on the bill is 36%.3. The BEY on the bill is 11.46%.4. The holding period yield is -10.44%. The interest rates rose over the holding period.5. The loss would be 2.08% of the face value of the bill, which is $20,800.
To know more about values visit:
https://brainly.com/question/30145972
#SPJ11
An investor expects a stock to sell for $100 in exactly one year. The stock will not pay a dividend in the next year. After some research, the investor estimates the firm's beta as 1.20, the risk free rate at 2%, and the market portfolio risk premium at 5.50\%. Given this information and expected price, how much can the investor pay today for this stock to earn his required return?
The expected rate of return of the investor from the given information is 9.6%. The price he can pay today for the stock to earn his required return is $90.39.
Given:
Expected selling price = $100
Beta = 1.20
Risk-free rate = 2%
Market portfolio risk premium = 5.50%
The formula to find the required rate of return is:
Required Rate of Return = Risk-Free Rate + Beta * (Market Risk Premium) = 2 + 1.20 * 5.50% = 9.6%
Using the present value formula:
PV = FV / (1 + r)n
PV = 100 / (1 + 9.6%)1 = $91.30
Therefore, the investor can pay today $91.30 for this stock to earn his required return. But, since the question is about how much the investor can pay, he wants to know the price which provides the required rate of return. Thus, the present value formula is modified to solve for PV:
PV = FV / (1 + r)n => PV = FV / (1 + r)n
=> PV = $100 / (1 + 9.6%)1
=> PV = $90.39
Therefore, the price he can pay today for the stock to earn his required return is $90.39.
Learn more about The expected rate of return: https://brainly.com/question/29356451
#SPJ11
s and n bought a store building and took title as joint tenants
The s and n bought a store building and took title as joint tenants, they were granted the right of survivorship.
What is a joint tenancy?
A joint tenancy is a legal ownership structure that may be used by a property-owning couple. In joint tenancy, each tenant has an equal interest in the property.
It also means that if one of the joint tenants dies, the property passes to the remaining tenant or tenants (depending on how many remain) by right of survivorship.
A joint tenancy is frequently used for two or more individuals who own property together. It is a popular option for family members, business partners, or anyone else who wants to share the ownership of a piece of property.
What is the right of survivorship?
The right of survivorship is a legal term that refers to the way property is treated when one of the joint tenants dies. It means that if one of the joint tenants dies, his or her interest in the property is transferred to the remaining joint tenant(s) automatically.
The deceased joint tenant's heirs will have no claim to the property in the absence of a will or other legal instrument to the contrary.
The right of survivorship is a critical component of joint tenancy, as it ensures that the property remains in the hands of the surviving tenant(s) and avoids the probate process.
To learn more about joint tenancy from the given link.
https://brainly.com/question/30420028
#SPJ11
Omar's brokerage account has 275 shares of Stock X with $52 per share and 240 shares of Stock Y with $23 per share. The portfolio weight of Stock X is • .7816 • .8117 • .2785 • .2387 • .7215
A portfolio weight is the percentage of a portfolio's holdings represented by a particular security.
The portfolio weight of Stock X is calculated as follows:
Total value of Stock X = 275 x $52 = $14,300
Total value of Stock Y = 240 x $23 = $5,520
Total portfolio value = $14,300 + $5,520 = $19,820
Therefore, the portfolio weight of Stock X is:
Portfolio weight of Stock X = (Total value of Stock X / Total portfolio value) x 100%
Portfolio weight of Stock X = ($14,300 / $19,820) x 100%
Portfolio weight of Stock X = 72.15% or .7215 (rounded to four decimal places)
Therefore, the correct option is .7215.
To know more about holdings visit :
https://brainly.com/question/31838199
#SPJ11
Once the entire submission has been completed, the user must be informed that the product details have been successfully saved.
Your product details have been saved. After completing the submission process, it is important to inform the user about the successful saving of product details.
This confirmation message provides reassurance to the user that their data has been securely stored and eliminates any uncertainty or doubt. By clearly stating that the product details have been successfully saved, the user can proceed with confidence, knowing that their input has been recorded and can be accessed as needed. This feedback enhances the user experience and ensures transparency in the system, fostering trust and satisfaction.
Learn more about product here:
https://brainly.com/question/31812224
#SPJ11
Which of the following statements is NOT a difference between an exchange traded fund (ETF) and an index fund?
A) An ETF is structured to track a market index using a diversified basket of securities while an IMF focuses on tracking a market index using a portfolio comprising a defined group of securities within the index.
B) The structure of an ETF provides greater liquidity than an IMF since its market prices change throughout the day while an IMF is valued only one a day.
C) An ETF offers a daily disclosure of holdings while an IMF typically discloses through quarterly reports.
D) An IMF will distribute realized capital gains and losses more frequently than an IMF.
The statement that is NOT a difference between an exchange-traded fund (ETF) and an index fund is "An ETF is structured to track a market index using a diversified basket of securities while an IMF focuses on tracking a market index using a portfolio comprising a defined group of securities within the index.
" An ETF tracks an index using a basket of securities while an index fund tracks a market index using a portfolio consisting of a specified group of securities within the index. ETF vs. The main distinctions between ETFs and index funds are their expense ratios, trading costs, and investment minimums. ETFs and index funds are both diversified investments that pool money from several investors. ETFs and index funds have different structures, with ETFs being more flexible and adaptable than index funds. ETFs provide intraday liquidity, making them ideal for active traders, while index funds typically have less intraday liquidity and are better suited to long-term buy-and-hold investors. ETFs are a better option for frequent traders.
To know more about portfolio visit:
https://brainly.com/question/17165367
#SPJ11
an mnc's cash flows are likely to be less volatile if its percentage of foreign sales is and the number of foreign countries it sells products to is . a. high; large b. high; small c. low; small
An MNC's cash flows are likely to be less volatile if its percentage of foreign sales is high and the number of foreign countries it sells products to is large. Thus, option A is the correct option.
An MNC's cash flows are likely to be less volatile if its percentage of foreign sales is high and the number of foreign countries it sells products to is large. This is because a diversified international presence can help mitigate risks associated with specific countries or regions.
When an MNC has a high percentage of foreign sales, it reduces its dependence on a single domestic market. If one market experiences economic downturns or other adverse conditions, the MNC can rely on its sales from other countries to offset the impact. This diversification spreads the risk across multiple markets and reduces the overall volatility of cash flows.
Similarly, selling products in a large number of foreign countries provides further diversification. By operating in various countries with different economic cycles, political environments, and consumer preferences, the MNC is less vulnerable to shocks in any single market.
Learn more about cash flow here:
https://brainly.com/question/27994727
#SPJ4
