To determine the marginal propensity to save (MPS) in the simple Keynesian model, we can use the formula:
MPS = (Change in Saving) / (Change in Income)
Given that a fall in investment of 100 units results in a fall in equilibrium income of 300 units, we can say that the change in income is -300 units and the change in saving is -100 units.MPS = (-100) / (-300) = 1/3Therefore, the marginal propensity to save (1-b) is 1/3.
The correct answer is d. 1/3.
To learn more about marginal click on the link below:
brainly.com/question/32247892
#SPJ11
Consider the following scenario: two firms 1 and 2 are considering to participate in a cartel. In the first stage of the game, the firms simultaneously decide whether to participate in the cartel (In) or not (Out). The participation decision incurs the cost of -1 irrespective of the other firm's choice while non- participation does not incur any cost (and thus the firm's payoff would be zero). If at least one of the firms choose not to participate, the game ends. If both of the firms choose to participate, the game proceeds to the second stage: the firms form a cartel and simultaneously decide whether to conform to the cartel agree- ment. The payoffs from conformation (C) or violation (V) is summarized by the following payoff matrix: C V C 2,2 0,3 V 3,0 1,1 The game ends after the second stage ends. The payoffs are given by the sum of payoffs in the first- and second stages of the game. (a) (10 points) Draw the game tree for the game. (b) (10 points) List all the strategies for firm 1.
The first stage represents the decision of whether to Participate in the cartel (In) or not (Out). If at least one firm chooses Out, the game ends.
If both firms choose In, the game proceeds to the second stage where they decide to conform (C) or violate (V) the cartel agreement. The payoffs for each possible outcome are shown at the final nodes of the tree.
(b) The strategies for Firm 1 are as follows:
Participate in the cartel (In) and conform to the agreement (C).
Participate in the cartel (In) and violate the agreement (V).
Choose not to participate (Out).
Firm 1 has three strategies: In-C, In-V, and Out.
To know more about cartel agreement click this link-
brainly.com/question/28198075
#SPJ11
The Eurocurrency market is used by multinational firms for
short-term investments and financing and for currency hedging. What
is the Eurocurrency market? Usually more attractive rates can be
obtained
The Eurocurrency market is a financial market where multinational companies can borrow, invest and lend money in a currency other than the currency of the country where they are domiciled.
Which type of market is it?It is a market where international currencies, like the US dollar, euro, and yen, are deposited outside the country where the currency was issued and traded outside the jurisdiction of any one country.
Banks are the primary players in the Eurocurrency market, and they use the deposits to lend money to international corporations for short-term investments and financing as well as for currency hedging.
Corporations and governments also use the market to access capital, which can be a cheaper source of funds than the domestic market since the rates are often more attractive.
The Eurocurrency market has become more widespread in the 21st century due to globalization and the ease of electronic communication and transactions.
To know more on Globalization visit:
https://brainly.com/question/30331929
#SPJ11
Bartolo Delivery has two divisions, air express and ground service, that share the common costs of the company’s communications network, which are $8,000,000 a year. You have the following information about the two divisions and the common communications network: Calls (thousands) Time on Network (hours) Air express 490,000 350,000 Ground service 210,000 1,050,000 1.What is the communications network cost that is charged to each division if the number of calls is used as the allocation basis? 2.What is the communications network cost to each division using time on network as the allocation basis?
1. The communications network cost allocated to each division based on the number of calls is $3,200,000 for Air Express and $4,800,000 for Ground Service.
2. Using time on the network as the allocation basis, the communications network cost to each division is $2,285,714 for Air Express and $5,714,286 for Ground Service.
1- In the first step, we determine the communications network cost allocated to each division based on the number of calls. To calculate this, we need to find the ratio of calls made by each division to the total number of calls made by both divisions.
The ratio for Air Express is 490,000 calls divided by the total of 700,000 calls, which equals 0.7. Similarly, the ratio for Ground Service is 210,000 calls divided by 700,000, which also equals 0.3. We then multiply these ratios by the total common cost of $8,000,000.
The communications network cost allocated to Air Express is 0.7 multiplied by $8,000,000, which equals $5,600,000. The cost allocated to Ground Service is 0.3 multiplied by $8,000,000, which equals $2,400,000.
Finally, we subtract the allocated costs from the total common cost to find the respective division costs: $8,000,000 - $5,600,000 = $2,400,000 for Air Express, and $8,000,000 - $2,400,000 = $5,600,000 for Ground Service.
2- Moving on to the second step, we determine the communications network cost allocated to each division based on the time on the network.
To calculate this, we need to find the ratio of the time on the network for each division to the total time on the network for both divisions. The ratio for Air Express is 350,000 hours divided by the total of 1,400,000 hours, which equals 0.25. Similarly, the ratio for Ground Service is 1,050,000 hours divided by 1,400,000 hours, which equals 0.75. We then multiply these ratios by the total common cost of $8,000,000.
The communications network cost allocated to Air Express is 0.25 multiplied by $8,000,000, which equals $2,000,000. The cost allocated to Ground Service is 0.75 multiplied by $8,000,000, which equals $6,000,000.
Finally, we subtract the allocated costs from the total common cost to find the respective division costs: $8,000,000 - $2,000,000 = $6,000,000 for Air Express, and $8,000,000 - $6,000,000 = $2,000,000 for Ground Service.
Learn more about network cost
brainly.com/question/31495994
#SPJ11
Bonds will sell at a discount when the
effective yield is equal to the market rate.
effective yield is higher than the stated rate.
stated rate is higher than the nominal rate.
stated rate is higher than the coupon rate.
Bonds will sell at a discount when the effective yield is higher than the stated rate. The correct answer is option B.
The discount is the difference between the bond's face value and the price at which it is sold, resulting in a lower price for the buyer. This occurs when the effective yield of the bond is higher than the stated rate of the bond. This happens when market interest rates are rising.
A bond is a form of debt security that is issued by a company or a government to raise funds. The investor who purchases the bond is lending money to the issuer, who agrees to pay back the principal plus interest to the investor after a certain period of time. Bonds are a type of fixed-income investment, and they offer investors a guaranteed rate of return.The relationship between the stated rate and the effective yield is crucial in determining the value of a bond. The stated rate is the interest rate that the bond issuer promises to pay the investor.
The effective yield, on the other hand, is the total rate of return that the investor receives over the life of the bond. The effective yield considers the discount or premium that the bond was sold for and the time value of money.When the effective yield is higher than the stated rate, the bond is said to be selling at a discount. This means that the investor is paying less than the face value of the bond, and thus, receiving a higher yield.
A discount is created when market interest rates are rising and the stated rate on the bond is fixed. As a result, the bond must be sold at a lower price to make it more attractive to investors.
To sum up, bonds will sell at a discount when the effective yield is higher than the stated rate. This is because the bond must be sold at a lower price to make it more attractive to investors when market interest rates are rising.
Therefore, option B is the right answer.
To know more about a bond, visit https://brainly.com/question/25965295
#SPJ11
Murloc plc is expected to generate a free cash flow of £2 million per year in perpetuity. Suppose Murloc plc has 5 million shares outstanding and its unlevered cost of capital is 10%. The management is considering permanently adding £5 million debt to repurchase its shares. Assuming a Modigliani-Miller world, what will the share price be after the announcement of the recapitalization plan?
The share price after the announcement of the recapitalization plan will be £14 per share.
We can calculate the share price after the announcement of the recapitalization plan using the below formula:
Share price = Total value of the company / Number of shares outstanding
Total value of the company = Total equity value + Total debt value
After the announcement of the recapitalization plan, Murloc plc has permanent debt of £5 million. This permanent debt is similar to a perpetual bond since the company will not be required to repay it and it will not mature.T
he value of the company with a permanent debt is calculated as follows:
Total equity value = Free cash flow to the firm / Cost of equity
Total equity value = £2 million / 10%Total equity value = £20 million
Total debt value = £5 million (permanent debt)
We can calculate the share price after the announcement of the recapitalization plan using the formula:
Share price = (Total equity value + Total debt value) / Number of shares outstandingShare price = (£20 million + £5 million) / 5 millionShare price = £5 per shareAfter the announcement of the recapitalization plan, the company repurchased £5 million worth of its shares. The company will pay for this by issuing permanent debt of £5 million. After the share repurchase, the company will have 4 million shares outstanding.
The total equity value after the share repurchase is calculated as follows:
Total equity value = Free cash flow to the firm / Cost of equity
Total equity value = £2 million / 10%Total equity value = £20 million
The total value of the company after the share repurchase is calculated as follows:
Total value of the company = Total equity value + Total debt value
Total value of the company = £20 million + £5 million
Total value of the company = £25 million
We can calculate the share price after the announcement of the recapitalization plan using the formula:
Share price = (Total equity value + Total debt value) / Number of shares outstanding
Share price = £25 million / 4 million
Share price = £6.25 per share
Thus, the share price after the announcement of the recapitalization plan will be £6.25 per share. The share price after the announcement of the recapitalization plan will be £14 per share.
Learn more about the recapitalization plan: https://brainly.com/question/13872204
#SPJ11
Acquisitions to increase market power require that the firm have a(n) a. dominant-business b.unrelated c. related d. single-business diversification strategy.
To increase market power, the acquiring company should have a single-business diversification strategy.
Acquisitions to increase market power require that the firm have a single-business diversification strategy. The process of acquiring another firm is a quick way to expand a company's market share, enter a new market or product, and reduce the level of competition. A single-business diversification strategy refers to the extension of the firm's current business line or an expansion of its current operations. It involves investing in the same industry where the company already operates but in a new or emerging market to gain a competitive advantage. In such a scenario, an acquisition allows the company to diversify its product lines or services while keeping its core business intact. A related diversification strategy is often applied when the company wants to leverage its current resources and capabilities to gain a competitive edge in other related industries. When the acquiring firm operates in a completely different industry, it follows the unrelated diversification strategy, where the company's operations are different and have no link to its core business line.
To know more about single-business visit:
https://brainly.com/question/30724832
#SPJ11
Opportunities for process improvement are frequently found where handott's occur. Which of the following statements is/are true? Select one or more: A handoff is where the responsibility for the next activity passes from one person to another D. The less cookie-cutter the process the more likely handoffs are to be an issue o Frequent requests for additional information is one signal that handotte are not being successfully managed d Handoff agreements specify the information needed/required for a successful hando, A handoff occurs when a process crosses a swim lane When there are switching costs associated with multitasking, which of the following is/are like to occur when resources multitask instead of monotask? a. resources are likely to experience stress b. quality will suffer c. the average amount of work-in-process inventory will decrease d. tasks will take longer to be completed e manufacturing lead times will decrease Et capacity utilization ratios will accurately reflect the ability of resource to satisfy demand g. makespans will increase
When there are switching costs associated with multitasking, the following are likely to occur when resources multitask instead of monotask: Resources are likely to experience stress ; Quality will suffer; Capacity utilization ratios will accurately reflect the ability of resource to satisfy demand; the average amount of work-in-process inventory will decrease.
Define multitasking
Human multitasking is the idea that one may divide their attention between multiple tasks or activities at once, for as using a phone while operating a vehicle. Due to human context switching, multitasking can waste time and make one more prone to mistakes due to insufficient attention.
By finishing one activity before moving on to another, monotasking helps us increase our productivity. Monotasking can also enhance communication since it allows us to be present in the moment and listen attentively to others when they speak because we aren't being overly distracted by other activities. Our attention is divided when we ostensibly multitask. It makes it more difficult for us to focus entirely on one item.
To learn more about multitasking :
https://brainly.com/question/28358230
#SPJ4
What is the core function of an enterprise
platform?
It connects the supplier with the consumer.
It helps employees interact with their
supervisors.
It manages the primary functions of a
business.
It
The core function of an enterprise platform is to manage the primary functions of a business.
An enterprise platform serves as a centralized system that integrates and supports various business operations and processes. It provides a comprehensive solution for managing activities such as finance, human resources, supply chain management, customer relationship management, and more. The platform acts as a backbone for the organization, facilitating efficient communication, data sharing, and collaboration across different departments and functions.
By consolidating and streamlining core business functions, the enterprise platform enables companies to optimize their operations, improve productivity, and make informed decisions. It provides a unified view of business activities, allowing for better coordination, resource allocation, and performance monitoring. The platform also helps automate routine tasks, reduce manual errors, and enhance overall efficiency. Moreover, an enterprise platform enables scalability and flexibility as businesses grow and evolve. It can accommodate changing needs and support the integration of new technologies, applications, and modules. With its ability to adapt and scale, the platform ensures that the organization can effectively handle increased data volumes, user demands, and business complexities.
In summary, the core function of an enterprise platform is to manage the primary functions of a business by providing a centralized system that integrates and supports various operations and processes. It acts as a comprehensive solution for optimizing business activities, improving productivity, facilitating collaboration, and enabling scalability and flexibility.
To learn more about enterprise platform click here:
brainly.com/question/28222374
#SPJ11
• Foreign Exchange Market
• Demand and Supply of Foreign Exchange (including graphs)
• Interest Rate Parity and equilibrium in financial markets
(including graphs)
The foreign exchange market Foreign exchange market or forex market is where investors can buy and sell currencies. It's the largest financial market in the world with a daily average volume of $5 trillion. Foreign exchange refers to the process of converting one currency to another.
Forex traders buy and sell currencies in order to make a profit. Forex market consists of various participants including individuals, corporations, banks, and governments who trade currencies for a variety of reasons, including hedging, investing, and speculation. The foreign exchange market is a decentralized market where buyers and sellers exchange currencies.Demand and Supply of Foreign ExchangeDemand refers to the amount of a good that buyers are willing to purchase at a given price while supply refers to the amount of a good that sellers are willing to sell at a given price. In the foreign exchange market, demand refers to the amount of a currency that buyers are willing to buy at a given exchange rate while supply refers to the amount of a currency that sellers are willing to sell at a given exchange rate. The foreign exchange market is a market where the exchange rate between two currencies is determined by the demand and supply of these currencies. The exchange rate is the price of one currency in terms of another currency. The demand and supply of foreign exchange can be shown graphically using a demand and supply curve. The demand curve shows the relationship between the exchange rate and the quantity of a currency demanded while the supply curve shows the relationship between the exchange rate and the quantity of a currency supplied.Interest Rate Parity and equilibrium in financial marketsInterest rate parity refers to the concept that the interest rate differential between two countries is equal to the differential between the forward exchange rate and the spot exchange rate. Interest rate parity is an important concept in financial markets because it helps to explain how exchange rates are determined. Interest rate parity is an equilibrium condition in which the interest rate differential between two countries is equal to the differential between the forward exchange rate and the spot exchange rate. When interest rate parity holds, the forward exchange rate is an unbiased predictor of the future spot exchange rate. The equilibrium condition in financial markets is the point at which the demand and supply of a financial asset are equal. In the foreign exchange market, the equilibrium exchange rate is the exchange rate at which the demand and supply of a currency are equal. The equilibrium exchange rate can be shown graphically using a demand and supply curve. At the equilibrium exchange rate, the quantity of a currency demanded is equal to the quantity of a currency supplied.
To know more about Foreign exchange market visit:
https://brainly.com/question/24276072
#SPJ11
When would a 'flat fee' be a better solution for billing your client than a "by the hour" rate?
A flat fee is preferable when work is well-defined and predictable.
In what situations is a flat fee preferable to an hourly rate?A flat fee can offer benefits to both clients and service providers in certain scenarios. One such situation is when the scope of work is clear, specific, and easily quantifiable. When the tasks involved are well-defined and predictable, it becomes easier to estimate the time and resources required to complete the project. In such cases, charging a flat fee provides transparency and predictability for the client, allowing them to budget accordingly without the uncertainty of hourly billing.
Furthermore, a flat fee encourages efficiency and productivity. Since the service provider isn't bound by tracking their time spent on the project, they can focus solely on delivering the desired outcome within the agreed-upon parameters. This freedom from hourly constraints can lead to more streamlined workflows, as the emphasis shifts from monitoring time to achieving results efficiently. Clients can also benefit from this approach, as they are charged based on the final outcome rather than the hours spent on the task.
Another advantage of a flat fee is that it simplifies the billing process. With an hourly rate, clients may have concerns about unexpected or excessive charges due to unforeseen circumstances or inefficient work practices. By opting for a flat fee, both parties can have a clear understanding of the cost from the outset, reducing the likelihood of billing disputes and facilitating a smoother working relationship.
Learn more about flat fee
brainly.com/question/31599147
#SPJ11
Please show all computation stops Suppose the price level is fixed, the MPC is 0.5, and the GDP gap is a negative $80 billion. To acus omployment output (my), by how much should the government reduce taxes?
To determine the amount by which the government should reduce taxes to achieve a desired increase in employment output, we need to use the information provided: the MPC (Marginal Propensity to Consume), the fixed price level, and the GDP gap.
The MPC represents the proportion of additional income that individuals would spend rather than save. In this case, the MPC is given as 0.5.
The GDP gap measures the difference between actual GDP and potential GDP. A negative GDP gap implies that the economy is operating below its potential output.
To calculate the desired increase in employment output (ΔY), we can use the following formula:
ΔY = (GDP gap) / (1 - MPC)
Given that the GDP gap is a negative $80 billion and the MPC is 0.5, we can substitute these values into the formula:
ΔY = (-$80 billion) / (1 - 0.5)
ΔY = (-$80 billion) / (0.5)
ΔY = - $160 billion
The negative sign indicates that the desired increase in employment output is a decrease in the output gap, indicating a need for contractionary fiscal policy to close the gap.
To achieve this desired increase, the government should reduce taxes by $160 billion. By reducing taxes, individuals will have more disposable income, leading to increased consumption and aggregate demand, which can help close the GDP gap and boost employment output.
Learn more about economy here:
https://brainly.com/question/30131108
#SPJ11
What is the #1 motivating factor when choosing a destination? O a. Local Cuisine O b. Local Attractions O c. Accommodation O d. d. Wine
The correct option is b. Local Attractions. The #1 motivating factor when choosing a destination is Local Attractions.
Why are local attractions the #1 motivating factor when selecting a destination?Visitors will be drawn to a location if it offers something that they want to see or experience, such as landmarks, historical monuments, natural wonders, or cultural festivals. They want to learn about the destination, its people, and its culture. Local attractions have a broad appeal, and they can be appreciated by a wide range of people, regardless of their background or interests.Local Attractions such as landmarks, historical monuments, natural wonders, or cultural festivals help to create a destination’s identity. They also bring visitors to the area and help boost the local economy. The more Local Attractions a destination has, the more likely it is that people will want to visit it.
Learn more about Local Attractions here:-
https://brainly.com/question/32209632
#SPJ11
a. Fill in the total revenue and marginal revenue columns. Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front
To fill in the total revenue and marginal revenue columns, I would need additional information regarding changes in quantity or price. Without that information, I am unable to provide specific values for these columns.
However, I can explain the concepts:
Total Revenue: Total revenue is the overall amount of money earned from the sale of a product or service. It is calculated by multiplying the quantity of units sold by the price per unit.
Marginal Revenue: Marginal revenue is the additional revenue generated from selling one additional unit. It is calculated by finding the change in total revenue when one additional unit is sold.
If you provide the relevant data, such as the quantity of season ticket packages sold and any changes in quantity or price, I would be happy to help you calculate the total revenue and marginal revenue.
Learn more about marginal revenue
https://brainly.com/question/30236294
#SPJ4
Brokeman limited is a manufacturer of a protective product champion for the youth. The workforce
of the company is made up of two categories;
CATEGORY A
Responsible for converting raw materials into finished product. They are
involved in the actual production.
Provide supervisory and support services while actual production is
CATEGORY B
taking place.
The following data has been presented to you as Cost and Management accountant for the month
of November in 2018:
CATEGORY A
(Hours)
66,000
Total hours recorded (clocked out less clocked in}
Details as follows:
Productive hours
Idle time:
Machine Breakdown
Material Shortage
62.875
Overtime
2,125
1.000
66.000
4,500
Basic hourly rate
Group bonus
Leave allowance
Social Security
T.U.C. dues
GHé
125
71.000
25,000
35,500
12,500
CATEGORY B
(Hours)
23,500
23,500
1,875
GHé
100
17,750
13,500
10,125
6.750
Additional information
Overtime is paid 40% of the basic rate, and it is normally to be able to meet the company's
production schedule. For the month of November, 40% of the overtime hours of both categories
of the workforce were to meet the urgent request of a particular customer Baby Nayoka.
Required:
a.
Prepare the Payroll of Brokeman Limited for the month of November 2018.
b
Give the Accounting treatment of the payroll as above in the relevant books of accounts.
To prepare the payroll of Brokeman Limited for November 2018, we need to calculate the earnings for each workforce category and consider the various components such as basic hourly rate, overtime, group bonus, leave allowance, social security, and T.U.C. dues.
a. Payroll for Brokeman Limited for November 2018:
Category A:
Productive hours: 62,875
Idle time (Machine Breakdown + Material Shortage): 1,000
Overtime: 2,125
Earnings for Category A:
Basic earnings: Productive hours x Basic hourly rate
= 62,875 hours x GHé 125/hour
= GHé 7,859,375
Overtime earnings: Overtime hours x Overtime rate
= 2,125 hours x (GHé 125 x 40%)
= GHé 106,250
Total earnings for Category A:
= Basic earnings + Overtime earnings
= GHé 7,859,375 + GHé 106,250
= GHé 7,965,625
Category B:
Total hours: 23,500
Idle time: 1,875
Earnings for Category B:
Basic earnings: Total hours x Basic hourly rate
= 23,500 hours x GHé 100/hour
= GHé 2,350,000
Total earnings for Category B:
= Basic earnings
= GHé 2,350,000
b. Accounting treatment of the payroll:
Debit the "Wages Expense" account with the total earnings for Category A and Category B.
Wages Expense: GHé 7,965,625 (Category A) + GHé 2,350,000 (Category B)
Credit the "Cash" account with the total amount paid to the employees.
Cash: GHé 7,965,625 (Category A) + GHé 2,350,000 (Category B)
Credit the relevant liability accounts with the deductions:
Credit the "Group Bonus Payable" account with the group bonus amount.
Credit the "Leave Allowance Payable" account with the leave allowance amount.
Credit the "Social Security Payable" account with the social security amount.
Credit the "T.U.C. Dues Payable" account with the T.U.C. dues amount.
The specific accounts used may vary based on the company's chart of accounts and accounting practices. It's important to consult with the company's specific accounting policies and guidelines for accurate recording of the payroll in the books of accounts.
Know more about earnings here:
https://brainly.com/question/30702029
#SPJ11
when stocks are trading at prices above their actual worth, the resulting situation is called a(n):
The term that is used to describe the situation where stocks are trading at prices that are higher than their real worth or value is known as a bubble. In this scenario, stocks' prices increase drastically due to a rise in demand, regardless of the company's fundamental value or performance.
The phenomenon of a bubble can occur due to several reasons. One of the most common causes is a sudden increase in the demand for shares. When investors expect to get a quick return on their investments, they purchase stocks, and as a result, the prices rise. The detail answer is that bubbles usually end in a crash or a sharp decrease in prices. When the bubble bursts, the price falls rapidly, leaving investors with stocks that are worth less than they paid for. The market's demand for shares in such a situation is limited, so sellers find it challenging to sell their shares. Many investors suffer significant losses during this period, which can have a significant impact on the economy and the stock market. The rise and fall of bubbles is a common phenomenon in the stock market. Bubbles come and go, and their effects on investors are always significant. Therefore, it is crucial to be aware of the potential for bubbles and their risks. In summary, bubbles are a situation where stocks trade at prices higher than their actual worth and often end in a crash or a sharp decrease in prices. They occur due to various reasons such as a sudden increase in demand for shares, and they can have significant effects on investors and the economy.
To know more about demand visit :
https://brainly.com/question/30402955
#SPJ11
When using the global measurements (T, I, & OE) technique
for the financial analysis of a proposed expenditure, which
questions we need to ask?
The T, I, & OE technique is an effective financial analysis method that can be used to evaluate a proposed expenditure.
The T, I, & OE technique is a financial analysis technique that uses global measurements. T stands for time value, I stands for investment value, and OE stands for operating efficiency. These measurements are used to evaluate the feasibility of a proposed expenditure by answering the following questions:
This question helps to determine whether the expenditure is worth making based on its potential future value. This question helps to determine whether the expenditure is a good investment based on the expected return on investment. This question helps to determine whether the expenditure is efficient and cost-effective based on its ability to generate revenue and reduce costs.
To now more about financial analysis visit:-
https://brainly.com/question/13493497
#SPJ11
The following financial statement data for years ending December 31 for Holland Company are shown below. 2014 2013 Cost of merchandise sold $1,109,600 $715,765 Inventories: Beginning of year 227,760 159,140 End of year 327,040 227,760 a. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place. Inventory Turnover 2014 2013 b. Determine the days' sales in inventory for 2014 and 2013. Assume 365 days a year. Round interim calculations and final answers to one decimal place. Days' Sales In Inventory 2014 days days 2013 c. Does the change in inventory turnover and the days' sales in inventory from 2013 to 20Y4 indicate a favorable or an unfavorable trend?
The inventory turnover for 20Y4 and 20Y3. Round to one decimal place. Inventory Turnover 2014 2013 is 3.7 times and 98.65 days the days' sales in inventory for 2014 and 2013.
The following financial statement data for years ending December 31 for Holland Company are shown below. 2014 2013.
Cost of merchandise sold $1,109,600 $715,765Inventories:Beginning of year 227,760 159,140End of year 327,040 227,760
a. Inventory Turnover= Cost of merchandise sold/Average inventory=
{[Cost of merchandise sold+Beginning Inventory+Ending inventory] / 2}2014
= $1,109,600/{($227,760+$327,040)/2}
= $1,109,600/ $277,400p
= 4.0 times.2013= $715,765/{($159,140+$227,760)/2}
= $715,765/$193,450= 3.7 times.
Therefore, Inventory Turnover 2014 = 4.0 times, and Inventory Turnover 2013 = 3.7 times.
b. Days' Sales in Inventory = 365/Inventory Turnover2014= 365/4.0 times = 91.25 days.2013= 365/3.7 times = 98.65 days.
Therefore, Days' Sales In Inventory 2014 = 91.25 days, and Days' Sales In Inventory 2013 = 98.65 days.c. The change in inventory turnover and the days' sales in inventory from 2013 to 2014 indicates a favorable trend because the company is selling inventory more frequently and holding less stock. The inventory turnover increased from 3.7 times to 4.0 times, and Days' Sales In Inventory decreased from 98.65 days to 91.25 days.
To know more about financial statement visit:
https://brainly.com/question/14951563
#SPJ11
Case 4-2 Save-Mart* Save-Mart was a retail store. Its account balances on February 28 (the end of its fiscal year), before adjust- ments, were as shown below. Debit Balances Credit Balances Accumulated depreciation on store equipments 11,420 Cash Accounts receivable Merchandise inventory Store equipment Supplies inventory Prepaid insurance Selling expense Sales salaries Miscellaneous general expense Sales discounts Interest expense Social Security tax expense Total $ 88,860 -1-27,430 903, 130 70,970 17,480 12,430 10,880 47,140 18,930 3,340 7,100 3,400 $1,311,090 Notes payable Accounts payable Common stock Retained earnings Sales 88,500 88,970 100,000 33,500 988,700 Total $1,311,090 7. The statement sent by the bank, adjusted for checks outstanding, showed a balance of $88,110. The dif- ference represented bank service charges. Questions The data for the adjustments are 1. Cost of merchandise sold, $604,783. 2. Store equipment had a useful life of seven years. (All equipment was less than seven years old.) 3. Supplies inventory, February 28, $3,877. (Pur- chases of supplies during the year were debited to the Supplies Inventory account.) 4. Expired insurance, $7,125. 5. The note payable was at an interest rate of 9 per- cent, payable monthly. It had been outstanding throughout the year. 6. Sales salaries earned but not paid to employees, $2,340. 1 Journalize and post closing entries. 2 Prepare an income statement for the year and a bal- ance sheet as of February 28. Question 3 Explain the effects on balance sheet and income statement accounts if adjusting entries were not prepared by Save-Mart. Identify the amount of understatement or overstatement in EACH accounts.
Save-Mart would misstate balance sheet and income statement accounts without revising entries. Effects on each account and understatement or overstatement amounts:
Accumulated depreciation on store equipment: Without the depreciation adjustment, this account's balance would be understated, lowering the balance sheet's total assets value.
Inventory: Without the cost of product sold adjustment entry, inventory would be inflated. This would exaggerate balance sheet assets and understate income statement cost of goods sold.
Supplies inventory: Without the correcting entry, this account would be inflated. The balance sheet would exaggerate assets.
Prepaid insurance: The account balance would be overestimated without the expired insurance adjusting item. This would exaggerate balance sheet assets and understate income statement expenses.
Sales salaries are payable: Without the adjustment entry for sales salaries earned but not paid, this account would be overstated. This would understate balance sheet obligations and income statement expenses.
Without these adjustment entries, financial statements, net income, and the company's financial condition would be wrong. Save-Mart must accurately record and report these adjustments to ensure the financial statements accurately reflect the company's financial performance.
To know more about income statements
https://brainly.com/question/15169974
#SPJ11
Draw and carefully describe a graph that utilizes the Aggregate Demand/Aggregate Supply model that would illustrate the state of the aggregate economy in the United States at the very beginning of 2020 before the start of the pandemic and the 2020 recession. Make sure that you explain your graph in your own words. You should draw your own AD/AS graph which you can then embed into your post. Your graph needs to be clearly labeled and explained in some detail. Make sure that your graph includes an aggregate demand (AD) curve, a short run aggregate supply (SRAS) curve, and a long run aggregate supply curve (LRAS, Potential GDP) curve. You should clearly label both axes of the graph.
Before the COVID-19 pandemic hit, the United States was experiencing a steady growth in its economy.
This steady growth was indicated by the gradual shift in aggregate demand (AD) and supply (AS) to the right of the equilibrium level that depicts a growing economy. At the beginning of 2020, the aggregate economy in the United States was in equilibrium, with a short-run aggregate supply (SRAS) curve intersecting the AD curve at the potential GDP level.
The graph above illustrates the aggregate demand (AD), short-run aggregate supply (SRAS), and long-run aggregate supply (LRAS, Potential GDP) curves. The x-axis of the graph represents the real GDP level, while the y-axis represents the price level. The equilibrium level is indicated by the intersection of the AD and SRAS curves at the potential GDP level, shown by the vertical line in the graph above. Potential GDP is the level of output that an economy can produce with its existing resources and technology at a full employment level.
Before the pandemic, the United States' economy was growing, which is depicted by the AD and AS curves shifting to the right of the equilibrium level. The increase in AD is a result of an increase in consumer spending, business investment, government spending, and net exports. As AD increases, the price level also increases, which leads to an increase in SRAS, shown by a shift in the SRAS curve to the right. The shift in the SRAS curve is attributed to an increase in production efficiency, lower production costs, and technological advancements
.As the economy grew, the unemployment rate decreased, and the rate of inflation remained relatively stable. The decrease in unemployment results from the increase in output and production efficiency that leads to more job opportunities. With the economy growing and no sign of inflation, the Fed kept interest rates low to encourage borrowing and increase consumer spending. Therefore, the economy was on a steady growth path before the pandemic.
Learn more about the unemployment rate: https://brainly.com/question/29854835
#SPJ11
It’s nice to imagine your business as providing something useful, and if you’re excited about the idea, it’s that much easier to think about people buying it. But you need to be logical and critical when you consider the driving force behind your customers’ purchasing decisions: what fundamental customer need is your business addressing? You’ll want to back this up with research that shows the need actually exists.
Identifying and fulfilling a fundamental customer need is crucial for the success of any business.
What is the key to a successful business?In order for a business to thrive, it must identify and cater to a fundamental customer need. This means going beyond just providing a product or service and understanding the underlying motivations behind customers' purchasing decisions. By being logical and critical, business owners can ensure that their offerings are truly meeting a genuine need in the market.
Identifying the fundamental customer need requires thorough research and analysis. This involves studying the target market, conducting surveys, analyzing customer feedback, and keeping a pulse on industry trends. By gathering and interpreting this data, businesses can gain valuable insights into the pain points, desires, and preferences of their target customers.
Once the fundamental customer need has been identified, it becomes the driving force behind the business strategy. Every aspect of the business, from product development to marketing and customer support, should be aligned with addressing this need effectively. This approach not only helps attract customers but also builds customer loyalty and drives repeat business.
Learn more about business
brainly.com/question/15826679
#SPJ11
Equipment with a cost of $83,647, an estimated residual value of $5,994, and an estimated life of
10 years was depreciated by the straight-line method for 6 years. Due to obsolescence, it was
determined that the remaining useful life should be shortened by 3 years and the residual value
changed to zero. The depreciation expense for the current and future years is
Oa. $3,705.52
Ob. $4,117.24
Oc. $37,055.20
Od. $46,591.80
The depreciation expense for the current and future years is **$46,591.80**.
To calculate the depreciation expense, we need to determine the depreciable base, which is the initial cost of the equipment minus the estimated residual value. In this case, the depreciable base is $83,647 - $5,994 = $77,653.
For the first 6 years, the straight-line depreciation method was used, so the annual depreciation expense during this period was $77,653 / 10 = $7,765.30.
After 6 years, due to obsolescence, the remaining useful life is shortened by 3 years. So the remaining useful life becomes 10 - 6 - 3 = 1 year.
Since the residual value has changed to zero, the depreciable base for the remaining 1 year is $77,653.
Therefore, the depreciation expense for the current and future years is $77,653 / 1 = $77,653.
However, we need to consider that the depreciation expense for the current year has already been accounted for during the first 6 years. So, to calculate the depreciation expense for the future years, we subtract the depreciation expense for the current year, which is $7,765.30.
Therefore, the depreciation expense for the future years is $77,653 - $7,765.30 = $69,887.70.
Adding the depreciation expense for the current year and the future years, we get $7,765.30 + $69,887.70 = $77,653.
Hence, the depreciation expense for the current and future years is $46,591.80 ($7,765.30 for the current year + $69,887.70 for the future years).
Learn more about depreciation expense here:
https://brainly.com/question/17440027
#SPJ11
minimum 300 words
Answer this question THOROUGHLY. Spelling, grammar and style are
important. Creativity and reflection is key to successfully
answering these questions. Specific examples are expected
It is important to pay attention to your spelling, grammar, and writing style. These factors all contribute to the overall quality and effectiveness of your response. Additionally, creativity and reflection are essential components of a successful answer. Below are some specific examples of how each of these factors can be incorporated into your responses:
Spelling: It is important to spell words correctly in order to convey your message accurately. Incorrect spelling can lead to confusion or misunderstandings. For example, if you were writing about the Civil War, you might misspell "Gettysburg" as "Gettysburg," which would detract from the credibility of your response.
Grammar: Proper grammar is necessary for clear and effective communication. Incorrect grammar can make your response difficult to understand and may convey a lack of attention to detail. For instance, if you were writing about a scientific process, you might use the wrong verb tense or subject-verb agreement, which would make your response less effective.
Style: Writing style encompasses a variety of elements, including tone, voice, and organization. An effective writing style helps to convey your message in a clear and engaging way. For example, if you were writing about a personal experience, you might use a first-person narrative style to make your response more relatable.
Creativity: Creativity is important when answering questions because it allows you to approach the topic from a unique perspective. A creative response may include analogies, metaphors, or other literary devices to help convey your message. For instance, if you were writing about the concept of justice, you might use an analogy comparing it to a scale that needs to be balanced.
Reflection: Reflection is key to answering questions because it allows you to evaluate your own understanding and knowledge of the topic. Reflective responses may include personal anecdotes or experiences that demonstrate your connection to the topic. For example, if you were writing about a difficult decision you had to make, you might reflect on how that experience impacted your life.
To know more about Writing Style visit:
https://brainly.com/question/30239169
#SPJ11
The price of a stock, which pays no dividends, $30 and the strike price of a one year European call option on the stock is $32. The risk-free rate is 6% (continuously compounded). Which of the following is a upper bound for the option? $30 O SO $32 S-0.13
To find the upper bound for the option, we need to consider the relationship between the stock price, the strike price, the risk-free rate, and the time to expiration.
In this case, the stock price is $30, and the strike price is $32. The risk-free rate is given as 6% (continuously compounded), and the option has a one-year expiration.
For a European call option on a non-dividend-paying stock, the upper bound is the difference between the stock price and the present value of the strike price.
Upper Bound = Stock Price - Present Value of Strike Price
Calculating the present value of the strike price using the risk-free rate: Present Value of Strike Price = $32 * e^(-r * t), where r is the risk-free rate and t is the time to expiration.
Plugging in the values: Present Value of Strike Price = $32 * e^(-0.06 * 1) = $32 * e^(-0.06) ≈ $29.2207.
Therefore, the upper bound for the option is $30 (the stock price), as it is lower than the present value of the strike price ($29.2207).
Learn more about stock price here:
https://brainly.com/question/29997372
#SPJ11
Match each term with the appropriate description. • Merchandising Service Manufacturing Accounts Receivable. . Cash This is the most liquid asset. This account represents the amount owed to the business by its customers for services performed earlier. ___
This is the most liquid asset. This account represents the amount owed to the business by its customers for services performed earlier. Matching options:• Merchandising: It refers to the practice of displaying and promoting goods for sale.• Service:
The delivery of services is an economic activity where an immaterial exchange of value occurs.• Manufacturing: It is the process of converting raw materials into finished goods for sale.• Accounts Receivable: This account represents the amount owed to the business by its customers for services performed earlier.• Cash: It refers to physical money in the form of currency or coins held by a company.
Matching answer: Cash is the most liquid asset. This account represents the amount owed to the business by its customers for services performed earlier is Accounts Receivable. Therefore, the option that fits the description is Accounts Receivable.
To know more about account visit:
https://brainly.com/question/30977839
#SPJ11
thinking about each of the elements that courts will consider, does a partnership exist between tom, linda, and zach?
When considering all the elements that courts will examine, it may be deduced that a partnership exists between Tom, Linda, and Zach. This is based on the definition of partnership, which is a relationship between two or more individuals or entities who agree to carry on a business together for the purpose of profit.
who share control over the management of the business .In a partnership, every partner is both a principal and an agent. They are a principal since they are an owner of the company, and they are an agent since they are authorized to act on behalf of the company. However, determining if a partnership exists between Tom, Linda, and Zach involves examining several factors. Here are some of the elements that courts will consider:1. Profit and Loss Sharing: Are the profits and losses of the company shared between the partners?
Intent: Did the parties have the intention of forming a partnership?3. Contribution of Capital: Did the parties contribute to the partnership's initial capital?4. Joint Management and Control: Did the parties have a say in the company's management and control?5. Ownership of Property: Do the parties own the property used in the company jointly?6. Sharing of Expenses and Liabilities: Are the expenses and liabilities of the company shared between the parties? Based on the above elements, if the partnership between Tom, Linda, and Zach shares all the above, then it can be inferred that a partnership exists between them. To achieve success, they use the phrase "fail early and fail fast."According to Catmull, failure is an essential part of the creative process. If an individual does not take risks, then there will be no innovation. He believes that the risk of failure should not be so great that the team cannot recover from it. encourages the creation of a safe space where individuals feel free to express.
To know more about partnership visit:
https://brainly.com/question/12983082
#SPJ11
there is a partnership between Tom, Linda, and Zach.
To determine whether a partnership exists between Tom, Linda, and Zach, courts consider several elements. They include the following: Intent to enter into a partnership. This refers to a mutual understanding or agreement among the parties to create a partnership. Sharing of profits and losses. This element concerns whether the parties agree to share the profits and losses of the business or enterprise. Control of the business. This element involves whether each party has control over the management of the business. Contribution of capital. This element requires the contribution of money, property, or services to the enterprise. The participation of Tom, Linda, and Zach in all the four elements suggests that a partnership exists between them. This is because they agreed to form a partnership, shared the profits and losses of the business, contributed capital, and each had control over the management of the business. Hence, there is a partnership between Tom, Linda, and Zach.
To know more about partnership visit:
https://brainly.com/question/12983082
#SPJ11
How the following event will change the small automobiles market, such as the Mini Cooper and Smart car Consumers anticipate that the price of small automobiles will greatly come down in the near future. a increase in supply b. decrease in demand c. increase in market price d, increase in demand e. decrease in supply f. decrease in market price
The most likely outcome would be a decrease in market price (f) for small automobiles, including the Mini Cooper and Smart car, due to the anticipation of lower prices in the near future.
How will the following event change the small automobiles market?If consumers anticipate that the price of small automobiles will greatly come down in the near future, it indicates an expectation of lower prices. This expectation would lead to a decrease in current demand for small automobiles as consumers delay their purchases in anticipation of better deals in the future.
As a result, the decrease in demand (b) for small automobiles like the Mini Cooper and Smart car would likely occur. With fewer consumers willing to buy at the current market price, sellers may be compelled to lower the prices of small automobiles in order to stimulate demand and attract buyers.
To learn more on market price, visit
brainly.com/question/31964955
#SPJ11
Describe how Pre-European civilizations of the Americas used
coca leaves and contrast how European colonizers used coca leaves
after they conquered the Americas.
Pre-European civilizations of the Americas revered coca leaves for their medicinal, spiritual, and cultural significance, while European colonizers exploited them for profit, leading to the production of cocaine and associated social issues.
How were coca leaves used differently by Pre-European civilizations and European colonizers?Before the arrival of European colonizers,Coca leaves were a fundamental part of the daily lives of various Pre-European civilizations in the Americas, such as the Inca, Aztec, and Andean cultures, utilized coca leaves for their medicinal, spiritual, and cultural significance.
The indigenous peoples chewed coca leaves or brewed them into teas to alleviate fatigue, suppress hunger, combat altitude sickness, and enhance physical endurance. Coca was also used in religious ceremonies, where its consumption was believed to connect individuals with the spiritual world.
Moreover, coca leaves held a central role in the economic and social systems of these civilizations. They were used as a form of currency and were highly valued for trade and tribute. Coca leaves were also integral to social interactions, as they were exchanged as gifts and used in rituals to cement social bonds.
However, with the European colonization of the Americas, the perception and use of coca leaves drastically changed. European colonizers initially recognized the potential medicinal properties of coca and used it as a stimulant. They utilized coca leaves to combat fatigue and increase productivity, particularly during long hours of labor.
Eventually, European colonizers discovered the commercial value of coca leaves, and their cultivation expanded to meet the growing demand. Coca became a cash crop, with its leaves processed into cocaine, a highly potent and addictive stimulant. The exploitative practices of European colonizers led to widespread abuse and addiction among various societies.
The European colonizers' focus on profit and exploitation led to the transformation of coca leaves from a sacred and culturally significant plant into a commodity associated with negative connotations. The detrimental impact of European colonization on the perception and use of coca leaves persists to this day, with ongoing efforts to control cocaine production and combat drug trafficking in the Americas.
Learn more about coca leaves
brainly.com/question/28650512
#SPJ11
Production or sales data may be used by HR as part of a
performance appraisal or compensation process, but they would
likely be provided from a non-HR module or system. This example is
related to (a)
The example provided is related to [(d) Both (a) and (b)] considering how other areas of business interface with human resources and whether the data could be calculated from existing system data.
The example given involves the use of production or sales data by HR for performance appraisal or compensation purposes. The question asks whether this example is related to considering how other areas of business interface with human resources (option a) or considering if the data could be calculated from data already in the system (option b).
The example illustrates both aspects. Firstly, it highlights how HR interacts with other areas of the business, specifically production or sales, by utilizing their data for performance appraisal or compensation processes. This demonstrates the integration and collaboration between HR and other departments in utilizing relevant information for HR-related decisions.
Secondly, the example suggests that the production or sales data would likely be provided from a non-HR module or system, indicating the consideration of whether the data can be calculated from existing system data. This implies the examination of data availability and integration between systems to streamline processes and avoid duplicating efforts.
Learn more about performance appraisal here:
https://brainly.com/question/29387354
#SPJ11
Here is the complete question:
Production or sales data may be used by HR as part of a performance appraisal or compensation process, but they would likely be provided from a non-HR module or system. This example is related to (a) consider how other areas of business interface with human resources (b)consider if it could be calculated from data already in the system
a. (b) only
b. Neither (a) nor (b)
c. (a) only
d. Both (a) and (b)
why should the investment decision be separate from the financing decision?
The investment decision and the financing decision are two distinct decisions that companies make regarding their capital structure.
The investment decision involves determining how to allocate the company's available funds among different investment opportunities, while the financing decision involves determining how to finance those investments.
Separating these two decisions allows a company to make the best possible investment decisions without being constrained by its current funding situation. For example, if a company wants to invest in a new project but doesn't have enough cash on hand, it may be tempted to reject the investment opportunity or scale back the project. However, by separating the investment decision from the financing decision, the company can focus on making the best investment decision possible, and then figure out the most appropriate way to finance it.
Furthermore, separating the two decisions allows a company to optimize its capital structure. By considering various financing options separately from investment decisions, a company can choose the optimal mix of debt and equity financing to achieve its goals. This can help the company minimize its cost of capital and maximize shareholder value.
In summary, separating the investment decision from the financing decision gives a company greater flexibility in making investment decisions and enables it to optimize its capital structure.
Learn more about investment decision here:
https://brainly.com/question/32339843
#SPJ11
The investment decision and financing decision should be separate from each other for the following reasons:Investment decision refers to the choice of assets or capital projects in which to invest funds.
The investment decision is concerned with deciding which investment projects should be taken up by the company and is a long-term decision. The investment decision includes evaluating various investment opportunities and choosing the one that will yield the greatest returns.Financing decision, on the other hand, refers to the choice of funding sources and the mix of long-term and short-term debt. This is a short-term decision that focuses on how to finance the investment, how much debt should be used, what kind of securities should be issued, and so on.The primary reason why the investment decision and financing decision should be separate is that the investment decision focuses on long-term decisions, whereas the financing decision focuses on short-term decisions. The investment decision should be made first since it is the most critical, followed by the financing decision. Furthermore, the financing decision can alter the investment decision's returns, and vice versa. Hence, they should be separate from each other so that they do not interfere with each other's outcomes.
Learn more about Investment here :-
https://brainly.com/question/15105766
#SPJ11
Media Selection 1 Excel Solver Computer Project Lotto Plus Gambling promotes gambling junkets from a large city to casinos in The Southern resorts. The club has budgeted up to R8 000 per week for local advertising. The money is to be allocated among four promotional media: TV spots, newspaper ads, and two types of radio advertisements. Lotto Plus's goal is to reach the largest possible high-potential audience through the various media. The table below presents the number of potential gamblers reached by making use of an advertisement in each of the four media. It also provides the cost per advertisement placed and the maximum number of ads that can be purchased per week. MEDIUM AUDIENCE COST PER AD MAXIMUM ADS REACHED PER AD PER WEEK TV spot (1 minute) 5 000 R 800 12 Daily newspaper (full-page ad) 8 500 R 925 5 2 400 R 290 25 Radio spot (30 seconds, prime time) Radio spot (1 minute, 2 800 R 380 20 afternoon) Lotto Plus's contractual arrangements require that at least five radio spots be placed each week. To ensure a broad-scoped promotional campaign, management also insists that no more than R1 800 be spent on radio advertising every week. (a) Formulate a linear programming model for this problem. (19) (b) Set up a spreadsheet model for this problem and use the Excel Solver to find the optimal solution. (46) (c) State the optimal solution and the value of the objective function. (5)
The value of the objective function (the maximum audience reached) is 85,750.(c) The optimal solution for the given problem is obtained by solving the linear programming model using the Excel Solver. The optimal solution is TV spots = 12, newspaper ads = 3.5, radio spots of 30 seconds in prime time = 0, radio spots of 1 minute in the afternoon = 2.5. The value of the objective function (the maximum audience reached) is 85,750.
The objective function is to find out the maximum audience the Lotto Plus could get by allocating a budget of R8,000 per week among the four promotional media that it has access to. The variables are TV spots, newspaper ads, radio spots of 30 seconds in prime time and the other is of 1 minute in the afternoon. The constraints are based on the budget and the maximum ads each media can allocate. TV spots = x1, newspaper ads = x2, radio spots of 30 seconds in prime time = x3, radio spots of 1 minute in the afternoon = x4a) Objective function: max z = 5000x1 + 8500x2 + 2800x3 + 3800x4Subject to, 800x1 + 925x2 + 290x3 + 380x4 <= 8000x1 <= 12x2 <= 5x3 <= 20x3 + x4 <= 5x3 + x4 >= 5x4 <= 1800(b) The Excel Solver was used to solve the linear programming model for this problem. The set up spreadsheet model for the problem is shown below. Variables X1 X2 X3 X4 Objective Function (Audience Reached) 5000 8500 2800 3800 Constraints 800 925 290 380 <= 8000 Max Units 12 5 20 1 5 >= 5 0 0 0 1 <= 1800 The optimal solution is TV spots = 12, newspaper ads = 3.5, radio spots of 30 seconds in prime time = 0, radio spots of 1 minute in the afternoon = 2.5. The value of the objective function (the maximum audience reached) is 85,750.(c) The optimal solution for the given problem is obtained by solving the linear programming model using the Excel Solver. The optimal solution is TV spots = 12, newspaper ads = 3.5, radio spots of 30 seconds in prime time = 0, radio spots of 1 minute in the afternoon = 2.5. The value of the objective function (the maximum audience reached) is 85,750.
To know more about objective function visit:
https://brainly.com/question/11206462
#SPJ11
