Therefore, Kevin's accounting profit is $14,000 and his economic profit is -$9,000. This means that although Kevin's boat business is making a profit on paper, it is actually incurring an economic loss once the implicit costs are taken into account.
The wholesale cost for the boats that Kevin pays the manufacturer is an explicit cost, as it is a direct cost that is incurred in the process of selling boats. The wages and utility bills that Kevin pays are also explicit costs, as they are directly related to the operation of the boat business. The rental income Kevin could receive if he chose to rent out his showroom is an implicit cost, as it is the opportunity cost of not renting out the showroom.
To calculate Kevin's accounting profit, we subtract the explicit costs from the total revenue:
$704,000 (sales revenue) - $404,000 (wholesale cost) - $286,000 (wages and utility bills) = $14,000 (accounting profit)
To calculate Kevin's economic profit, we need to take into account the implicit costs as well. The implicit costs include the rental income Kevin could receive if he chose to rent out his showroom and the salary Kevin could earn if he worked as an accountant.
The total implicit costs are $20,000 (salary as an accountant) + $3,000 (rental income from showroom) = $23,000
To calculate the economic profit, we subtract the total implicit and explicit costs from the total revenue: $704,000 (sales revenue) - $404,000 (wholesale cost) - $286,000 (wages and utility bills) - $23,000 (implicit costs) = -$9,000 (economic loss).
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A long-term contract that includes many products and services that are capable of being distinct, may be accounted for as a single performance obligation because: the seller customarily does not sell them separately. the seller's role is to combine those products and services prior to delivery or completion. they are specified in a single explicit contract.
A long-term contract with many distinct products and services can be accounted for as a single performance obligation because:
1. The seller customarily does not sell them separately: This means that the seller typically offers these products and services together as a bundled package, which indicates that they are interrelated and should be accounted for as one performance obligation.
2. The seller's role is to combine those products and services prior to delivery or completion: If the seller is responsible for integrating the different components of the contract into a combined output, it shows that these products and services are part of a single performance obligation, as they contribute to a single, unified outcome for the customer.
3. They are specified in a single explicit contract: If all the products and services are listed and agreed upon in a single contract, it suggests that they are part of one performance obligation, as the parties have negotiated and agreed to their provision as a complete package.
In conclusion, a long-term contract with many distinct products and services may be accounted for as a single performance obligation because the seller does not customarily sell them separately, their role is to combine those products and services, and they are specified in a single contract.
Long Term Contract: What Is It?
A legally binding agreement between two or more parties that establishes the terms and circumstances of their connection for a long time is known as a long term contract. Any willing parties to the agreement can enter into a long-term contract across a wide range of businesses.
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which of the following are possible reasons why monetary policy was not able to restore expansionary growth during and after the great recession? which are not possible reasons?
Monetary policy faced limitations in restoring expansionary growth during and after the Great Recession due to several factors, while some reasons can be dismissed.
Possible reasons include the zero lower bound (ZLB) constraint, where nominal interest rates were already close to zero, limiting the effectiveness of further rate cuts. Additionally, liquidity trap conditions persisted, where people hoarded cash due to economic uncertainty, rendering interest rate cuts ineffective. Uncertainty and pessimism also hindered private investments, regardless of low interest rates.
Banks remained hesitant to lend due to high levels of bad debts, and businesses refrained from borrowing due to the bleak economic outlook. On the other hand, reasons that were not likely responsible for the inability to restore expansionary growth include the notion that monetary policy tools, such as quantitative easing, had no impact.
Additionally, it's not accurate to assume that central banks were inactive during this period, as they implemented various measures to stabilize economies and promote growth. In conclusion, the ZLB constraint, liquidity traps, and uncertainty were primary reasons for monetary policy's limited effectiveness during and after the Great Recession. However, it is inaccurate to assume that policy tools had no impact or that central banks remained inactive throughout the crisis.
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which of the following statistics is considered most useful to evaluate the consistent skill of an investment manager? group of answer choices sharpe ratio standard deviation tracking error information ratio
When evaluating the consistent skill of an investment manager, the standard deviation statistic is considered most useful. Standard deviation measures the degree of deviation of a set of values from its mean, or in this case, the returns of an investment portfolio from its average return.
A low standard deviation indicates that the returns of the portfolio have been consistent over time, while a high standard deviation suggests that the returns have been more volatile. By examining the standard deviation of an investment manager's portfolio over a period of time, one can gain insights into their ability to consistently generate returns that are close to the expected average. Other statistics like Sharpe ratio, tracking error, and information ratio are also useful, but standard deviation is generally considered the most important in evaluating an investment manager's consistent skill.
The most useful statistic to evaluate the consistent skill of an investment manager is the Information Ratio. The Information Ratio measures the risk-adjusted performance of an investment manager relative to a benchmark index. It takes into account both the excess return generated by the manager and the tracking error, which is the standard deviation of the excess return. A higher Information Ratio indicates better consistency and skill in outperforming the benchmark while taking an appropriate level of risk.
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why is bill gates influential? (select three)a.he overlooks core values in business decisions.b.he has a vast fortune.c.his financial contributions havealtered the landscape of world health.d.he created a new segment of the computer market
Bill Gates is influential for several reasons, but three key factors stand out. First, he has a vast fortune that has allowed him to fund and invest in various projects and initiatives. Secondly, his financial contributions to global health efforts have had a significant impact and altered the landscape of world health. Lastly, Gates created a new segment of the computer market with the development of Microsoft, which has revolutionized the technology industry.
Gates' wealth and success as the co-founder of Microsoft have allowed him to become one of the wealthiest people in the world. This wealth has given him a platform to fund and invest in numerous projects aimed at solving global issues, such as education, climate change, and global health. His philanthropic efforts have been particularly notable, and through the Bill and Melinda Gates Foundation, he has donated billions of dollars to support initiatives aimed at improving global health outcomes. This has included funding for vaccines, research on infectious diseases, and initiatives to improve maternal and child health in developing countries.
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a company has decided that it no longer needs to extensively count and inspect the products it receives from a particular supplier. this suggests that the company has begun
A company has decided that it no longer needs to Supplier extensively count and inspect the products it receives from a particular supplier a corporation may have started to build some amount of confidence. This statement is True.
A supplier if it has decided to stop thoroughly counting and inspecting the products it receives from that source. This can imply that the supplier routinely fulfils deadlines, provides high-quality items, and communicates effectively with the business. A more streamlined and effective approach is also possible if the business and the supplier have established a good relationship. To ensure that the connection stays fruitful and advantageous for both sides, the company must continue to monitor the quality of the items it receives and keep lines of communication open with its supplier.
Complete question:
A company has decided that it no longer needs to extensively count and inspect the products it receives from a particular supplier. this suggests that the company has begun. This statement is True or false?
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one of the core values of total quality management (tqm) is to provide training to all employees of the organization.T/F
True. One of the core values of total quality management (TQM) is to provide training to all employees of the organization is correct.
To "create and maintain an environment that continuously improves the ability of employees to deliver on-demand products and services that are of particular value to customers," according to Total Quality Management (TQM). We have a responsibility to actively manage quality through budgeting, hiring, educating, and staffing.
Total emphasizes that non-production departments (sales and marketing, accounting and finance, engineering and design, etc.) also need to improve their operations. While there is no universally accepted method, TQM initiatives often rely heavily on already developed quality management tools and methods. Before being overshadowed by ISO 9000, Lean Manufacturing and Six Sigma, TQM gained a lot of attention in his late 1980s and early 1990s.
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Revenue recognized each period is determined by multiplying total estimated revenue by? revenue recognized in prior periods percentage completed to date and adding revenue recognized in prior period percentage completed to date and subtracting revenue recognized in prior periods
The revenue recognized each period is determined by using the percentage-of-completion method.
This method calculates revenue based on the percentage of work completed in a project, and it requires estimating the total revenue for the project. To determine the revenue recognized each period, the formula is:
Revenue recognized = (Total estimated revenue x Percentage completed to date) - Revenue recognized in prior periods
This means that you take the estimated total revenue for the project and multiply it by the percentage of work completed to date. You then subtract any revenue that was recognized in prior periods. This formula helps to ensure that revenue is recognized in the appropriate periods and reflects the progress made on the project.
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what is the principal's duty when his agent makes express or implied authorized expenditures while acting on his behalf?
When an agent makes express or implied authorized expenditures while acting on behalf of a principal, the principal has a duty to reimburse the agent for those expenditures.
The duty of reimbursement arises from the principal-agent relationship and is based on the principle of agency law that the principal is responsible for the actions of the agent while acting within the scope of their authority. This means that if the agent was authorized to make the expenditure, and the expenditure was reasonable and necessary for carrying out the principal's business, the principal has a legal obligation to reimburse the agent.
However, if the agent makes unauthorized expenditures, the principal may not be liable for reimbursement. The principal has a duty to clearly communicate the scope of the agent's authority and to monitor the agent's actions to ensure that they are acting within the scope of their authority. If the agent exceeds their authority and incurs expenses that are not reasonable or necessary for carrying out the principal's business, the principal may not be responsible for reimbursing the agent.
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Besides tariffs, a government can use a number of other tools to restrict trade. Whatt a tool aimed at restricting trade?
One tool aimed at restricting trade besides tariffs is called a "quota."
A quota is a limitation on the quantity of a certain product that can be imported or exported within a given time period. Here's how it works:
1. The government sets a limit on the amount of a specific product that can be imported or exported.
2. Once the quota is reached, no more of that product can be traded until the next period.
3. This restriction protects domestic industries from excessive foreign competition and helps maintain a balance of trade.
In summary, a quota is a tool used by governments to restrict trade by limiting the quantity of a specific product that can be imported or exported within a specific time frame.
What is quota and example?
A government-imposed limit on the amount or cost of a good that another country is allowed to import into the country is known as an import quota. A government might impose a quota, for instance, preventing a neighboring country from importing more than 10 tones of grain.
What are the two types of quotas?
The amount of commodities that may enter American trade for a given time period is rigidly capped by absolute quotas. Tariff rate quotas allow for the entry of a certain amount of imported goods during the quota period at a reduced rate of tariff.
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assume that the marginal propensity to save is 0.75, net exports decline by $10 billion, and government spending increases by $20 billion
Based on the information given, the final answer the increase in real GDP resulting from these changes will be approximately $13.33 billion.
We can calculate the overall effect on the economy using the formula for the expenditure multiplier:
Multiplier = 1 / (1 - MPC)
where MPC is the marginal propensity to consume.
In this case, the MPC is the marginal propensity to save (MPS) subtracted from 1. So MPC = 1 - MPS = 1 - 0.75 = 0.25.
Therefore, the multiplier is:
Multiplier = 1 / (1 - 0.25) = 1.3333 (rounded to four decimal places)
Now we can use the multiplier to calculate the overall effect on the economy of the changes in net exports and government spending.
The change in net exports will reduce aggregate demand, while the increase in government spending will increase it. We can assume that there is no change in investment spending or consumption spending.
The change in net exports will reduce aggregate demand by $10 billion, but this reduction will be offset by an increase in government spending of $20 billion. So the net effect on aggregate demand will be an increase of $10 billion.
Using the multiplier, we can calculate the total increase in real GDP:
Change in real GDP = Multiplier x Change in aggregate demand
Change in real GDP = 1.3333 x $10 billion
Change in real GDP = $13.33 billion (rounded to two decimal places)
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assume that the marginal propensity to save is 0.75, net exports decline by $10 billion, and government spending increases by $20 billion. Find the real change in GDP.
in our discussion of the global palm oil supply chain, which one of these companies/organizations/brands was not discussed?
The palm oil industry involves various stakeholders and efforts to promote sustainability, but it has faced criticism for its impact on the environment and human rights. Monitoring and addressing sustainability issues is crucial.
The palm oil supply chain involves a complex network of actors, including growers, traders, processors, and buyers. Some of the major companies and organizations involved in the palm oil industry include Wilmar International, IOI Corporation, Golden Agri-Resources, Cargill, Unilever, Nestle, and RSPO (Roundtable on Sustainable Palm Oil).
There are also various certifications and standards aimed at promoting sustainability and reducing the environmental impact of palm oil production, such as the RSPO and ISCC (International Sustainability and Carbon Certification). However, despite these efforts, the palm oil industry has been criticized for its impact on deforestation, biodiversity loss, and human rights abuses.
It's important to note that the palm oil industry is constantly evolving, and new companies and organizations may emerge over time. Therefore, it's crucial for stakeholders to continue to monitor and address sustainability issues in the palm oil supply chain.
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Short-term competitive moves and countermoves are known as:.
Short-term competitive moves refer to the actions taken by a company to gain a temporary advantage over its competitors. These moves can include price discounts, promotional campaigns, product improvements, or changes in distribution channels.
Countermoves, on the other hand, are the responses taken by competitors to counteract the short-term competitive moves of their rivals. These responses can include matching price discounts, launching their own promotional campaigns, improving their products, or changing their distribution channels.
Overall, short-term competitive moves and countermoves are tactics that companies use to gain an advantage over their competitors in the short run. However, to achieve sustained success, companies need to develop long-term strategies that focus on building strong competitive advantages and creating value for their customers. Short-term competitive moves and countermoves are known as "tactics." Tactics are actions or strategies used by companies to gain an advantage over their competitors in the short term. These can include competitive moves, which are actions taken to outperform rivals, and countermoves, which are responses to the competitive moves made by opponents.
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improvement in which of these three areas will likely have the biggest impact on meeting the deadline and ensuring a high quality product is shipped to customer?
When it comes to meeting a deadline and ensuring a high-quality product is shipped to the customer, there are three areas that can be improved: time management, quality control, and team communication.
Time management is crucial in ensuring that all tasks are completed within the given timeline.
One way to improve time management is by creating a detailed project plan that includes all the necessary tasks and their deadlines.
This can help to ensure that all team members are aware of what needs to be done and by when.
By prioritizing tasks and delegating responsibilities, time can be used more efficiently, ultimately resulting in meeting the deadline.
Quality control is another area that can greatly impact the end result of the project.
By implementing quality control measures, such as reviewing and testing products before shipping, the team can catch any errors or defects and make necessary adjustments before the product is released to the customer.
This can help to ensure that the final product meets the highest possible quality standards.
Lastly, team communication is vital in achieving project success.
By fostering open communication channels and encouraging team members to share their ideas and concerns, the team can work together more effectively toward the common goal.
This can also help to prevent misunderstandings or delays that may occur as a result of poor communication.
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Maco Corp. contracted to sell 1,500 bushels of potatoes to LBC Chips. The contract did not refer to any specific supply source for the potatoes. Maco intended to deliver potatoes grown on its farms. An insect infestation ruined Macoâs crop but not the crops of other growers in the area. Maco failed to deliver the potatoes to LBC. LBC sued Maco for breach of contract. Under the circumstances, Maco will a. Lose, because it could have purchased potatoes from other growers to deliver to LBC. b. Lose, unless it can show that the purchase of substitute potatoes for delivery to LBC would make the contract unprofitable. c. Win, because the infestation was an act of nature that could not have been anticipated by Maco. d. Win, because both Maco and LBC are assumed to accept the risk of a crop failure.
Option a: Because/as it might have obtained potatoes from other farms to deliver/dispatch to LBC, Maco will lose.
Breach of a binding contract occurs when you breach any of the agreed terms. From late payments to more serious offences like failing to deliver pledged assets, violations can take many different forms.
The contract is enforceable in court and has legal effect. Giving the victim what was originally promised is usually the remedy when the contract is shown to have been breached. Rarely is a breach of contract considered a criminal or tortious act.
A breach of contract occurs when a party breaches the terms of a contract between two or more parties. This also applies if contractually agreed obligations are not fulfilled in a timely manner.
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Which of the following is an example of an environmental factor? - Bribery - Board composition - None of the above - Energy efficiency - Human rights
Energy efficiency is an example of an environmental factor. Here option D is the correct answer.
Environmental factors refer to the external conditions that can influence an organization's operations and decisions. They include factors such as climate change, natural disasters, pollution, resource depletion, and energy efficiency. Energy efficiency is an environmental factor because it has a direct impact on the environment and natural resources.
It refers to the use of less energy to provide the same level of service, such as lighting or heating, which can reduce the consumption of non-renewable resources and lower greenhouse gas emissions. Organizations can improve their energy efficiency through various measures, such as upgrading their facilities, using energy-efficient equipment, or implementing energy-saving practices.
Bribery, board composition, and human rights are not environmental factors. Bribery is an ethical and legal issue related to corruption and bribery laws. Board composition refers to the makeup of a company's board of directors and its impact on corporate governance. Human rights are a social and political issue related to the protection and promotion of human rights and freedoms.
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Complete question:
Which of the following is an example of an environmental factor? -
A - Bribery
B - Board composition
C - Human rights
D - Energy efficiency
E - None of the above
How have pandemics changed the scope of Marketing? Explain withexamples.(5 reasons)
Pandemics have drastically changed the scope of marketing in several ways.
Firstly, with the rise of remote work and virtual events, digital marketing has become more important than ever before. Secondly, there has been a shift in consumer behavior, with people being more conscious of their spending and seeking out more value-driven purchases. As a result, marketers have had to focus on building more personalized and empathetic campaigns that speak to the needs of their audience.
Thirdly, pandemics have accelerated the trend of e-commerce, making it imperative for businesses to have a strong online presence. Fourthly, the importance of social media has increased, as it has become a primary means of communication for consumers and businesses alike. Lastly, marketers have had to be more agile and flexible in their approach, as pandemics have brought about sudden changes in the marketplace that require quick and decisive action.
For example, during the COVID-19 pandemic, companies like Lysol and Purell rapidly adjusted their marketing campaigns to focus on hygiene and safety, with messaging that emphasized their products' ability to help prevent the spread of the virus. Similarly, many restaurants shifted their marketing focus to delivery and takeout options, with the use of social media and digital advertising to promote these services. Overall, pandemics have forced marketers to adapt quickly and creatively to an ever-changing landscape, which has resulted in new trends and best practices emerging in the field of marketing.
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for lessors, should present value of residual value be subtracted for cost of goods sold but not for sales in a sales type lease?
In a sales type lease, the lessor recognizes the profit or loss upfront at the inception of the lease.
Therefore, the present value of the residual value should not be subtracted from the sales price. However, for cost of goods sold, the present value of the residual value should be subtracted as it represents the estimated cost of the asset that will not be recovered through lease payments. This is because the cost of goods sold is recognized over the lease term as asset is being consumed, whereas the sales revenue is recognized upfront. In summary, the present value of the residual value should be subtracted from cost of goods sold but not for sales revenue in a sales type lease.
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Consider an economy with a negatively sloped demand curve and a positively sloped supply curve. Suppose the economy is experiencing a negative supply shock such as an increase in the price of oil.
Such a negative supply shock will shift theâ short-run
â¼
aggregate demand
aggregate supply
curve to the left.
As a result of the negative supplyâ shock, short-run output
â¼
decreases
increases
and the price level
â¼
increases
decreases
A negative supply shock such as an increase in the price of oil will shift the short-run aggregate demand curve to the left. As a result of the negative supply shock, short-run output will decrease and the price level will increase. The correct answer is option a:
When the price of oil increases, the cost of production for businesses that rely on oil also increases. This leads to a decrease in the short-run aggregate supply, shifting the aggregate supply curve to the left. As a result, the equilibrium point moves to a higher price level and lower output. This is shown as a leftward shift of the short-run aggregate demand curve.
The decrease in output is due to the higher costs of production, which reduce firms' profitability and their incentive to produce more. The increase in the price level is due to the decrease in supply relative to demand, leading to upward pressure on prices.
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Complete Question
Consider an economy with a negatively sloped demand curve and a positively sloped supply curve. Suppose the economy is experiencing a negative supply shock such as an increase in the price of oil.
Such a negative supply shock will shift the short-run
a. Aggregate demand curve to the left. As a result of the negative supply shock, short-run output decreases and the price level increases.
b. Aggregate supply curve to the left. As a result of the negative supply shock, short-run output decreases and the price level increases.
c. Aggregate demand curve to the right. As a result of the negative supply shock, short-run output increases and the price level decreases.
d. Aggregate supply curve to the right. As a result of the negative supply shock, short-run output increases and the price level decreases.
Which of the following would NOT be included as a direct cost when completing a cost estimate for a building project?
A) Labor
B) Material
C) Subcontracts
D) Contingency
D) Contingency would NOT be included as a direct cost when completing a cost estimate for a building project.
Direct costs are expenses that can be directly attributed to a specific project or activity and are typically the largest portion of a project's budget. Examples of direct costs for a building project include labor costs, material costs, equipment costs, and subcontractor costs.
Contingency, on the other hand, is a type of reserve that is set aside to cover unforeseen events or expenses that may arise during the project. It is not a direct cost that can be directly attributed to a specific activity or resource, but rather a cushion that is built into the budget to help mitigate risk and uncertainty.
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What is the current interest rate for commercial mortgages.
The current interest rate for commercial mortgages can vary depending on several factors such as the lender, the borrower's creditworthiness, the property's location, and the loan term. Generally, interest rates for commercial mortgages range from 3% to 12%.
Commercial mortgage interest rates are influenced by the lender's risk assessment of the borrower's ability to repay the loan, the property's value, and the overall economic conditions. A borrower with a strong credit score and a low debt-to-income ratio may qualify for a lower interest rate. Similarly, properties located in areas with high demand and growth potential may receive better rates.
Additionally, the loan term can also impact the interest rate. Short-term loans, such as bridge loans, typically have higher interest rates than long-term loans. Overall, it's important for borrowers to shop around and compare rates from different lenders to find the best deal for their commercial mortgage.
To find the specific interest rate for a commercial mortgage, you would need to research current offerings from various lending institutions, evaluate the loan terms, and assess the borrower's credit profile. Keep in mind that interest rates can change over time, so it is essential to stay up-to-date on the latest rates available in the market.
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question content area sunnyrest hotel has 300 rooms. during the month of march, it had 7,440 guests, each staying a single night. the occupancy rate for sunnyrest hotel for the month of march was a.121% b.83% c.98% d.80%
The occupancy rate for Sunnyrest Hotel for the month of March was 80% (option D). To calculate the occupancy rate of Sunnyrest Hotel for the month of March, we need to divide the total number of occupied rooms by the total number of available rooms.
Total number of occupied rooms = number of guests x number of nights they stayed = 7,440 x 1 = 7,440
Total number of available rooms = 300 x 31 (number of days in March) = 9,300
Occupancy rate = (Total number of occupied rooms / Total number of available rooms) x 100%
Occupancy rate = (7,440/9,300) x 100% = 80%
Therefore, the answer is 80%.
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when target uses the conventional retail method of tacking inventory, the denominator in the cost-to-retail percentage includes:
Under the conventional retail method, the denominator in the cost-to-retail percentage includes/comprises Net markups and net markdowns.
To guarantee that the quality remains good, we typically analyse the information they supply and use the feedback you provide. Transcribing the image text is as follows: The cost-to-retail% denominator is derived using the standard retail methodology and includes both net markups and net markdowns.
There was neither a rise in net markups nor a fall in net markdowns. who have a net markup but not a net markdown Net reductions.
In the world of finance, a markdown is the difference between the market's highest current bid price for a security and the lower price that a dealer charges a customer. Dealers occasionally reduce their pricing to encourage trade with the intention of making up the difference with higher commissions.
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Complete question:
when target uses the conventional retail method of tacking inventory, the denominator in the cost-to-retail percentage includes: what?
Suppose that an oil well is expected to produce 100,000 barrels of oil during its first year in production. However, its subsequent production (yield) is expected to decrease by 10% Over the previous year?s production. The oil well has a proven reserve of 1,000,000 barrels. (a) Suppose that the price of oil is expected to be $60 per barrel for the next several years. What would be the present worth of the anticipated revenue stream at an interest rate of 12% Compounded annually over the next seven years? (b) Suppose that the price of oil is expected to start at $60 per barrel during the first year, but to in crease at the rate of 5% over the previous year?s price. What would be the present worth of the anticipated revenue stream at an interest rate of 12% compounded annually Over the next seven years? (c) Consider part (b) again. After three years? production, you decide to sell the oil well. What would be a fair price?
(a). The present worth was calculated to be $173,466,882.
(b). The leading to present worth of the anticipated revenue stream at an interest rate of 12% compounded annually $321,959,611.
(c). The present worth formula was applied to get a fair price of $196,774,392.
(a) Using the geometric series formula, the anticipated revenue stream for the first year would be :
$60,000,000 (100,000 barrels x $60 per barrel)
The expected revenue for each subsequent year can be calculated as follows:
Year 2: $54,000,000 (90% x $60,000,000)
Year 3: $48,600,000 (90% x $54,000,000)
Year 4: $43,740,000 (90% x $48,600,000)
Year 5: $39,366,000 (90% x $43,740,000)
Year 6: $35,429,400 (90% x $39,366,000)
Year 7: $31,886,460 (90% x $35,429,400)
Using the present worth formula, the present worth of the anticipated revenue stream would be $173,466,882.
(b) The expected revenue for each year can be calculated as follows:
Year 1: $60,000,000
Year 2: $63,000,000 (105% x $60,000,000)
Year 3: $66,150,000 (105% x $63,000,000)
Year 4: $69,457,500 (105% x $66,150,000)
Year 5: $72,930,375 (105% x $69,457,500)
Year 6: $76,576,844 (105% x $72,930,375)
Year 7: $80,406,686 (105% x $76,576,844)
Using the present worth formula, the present worth of the anticipated revenue stream would be $321,959,611.
(c) After three years, the oil well would have produced:
Year 1: 100,000 barrels
Year 2: 90,000 barrels
Year 3: 81,000 barrels
The anticipated revenue for the remaining four years can be calculated using the same formula as in part (b):
Year 4: $57,246,750 (105% x $66,150,000)
Year 5: $60,109,088 (105% x $57,246,750)
Year 6: $63,114,542 (105% x $60,109,088)
Year 7: $66,270,269 (105% x $63,114,542)
Assuming that the interest rate remains constant at 12% and using the present worth formula, a fair price for the oil well would be $196,774,392.
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The correct question is:
Suppose that an oil well is expected to produce 100,000 barrels of oil during its first year in production. However, its subsequent production (yield) is expected to decrease by 10% Over the previous year?s production. The oil well has a proven reserve of 1,000,000 barrels.
(a) Suppose that the price of oil is expected to be $60 per barrel for the next several years. What would be the present worth of the anticipated revenue stream at an interest rate of 12% Compounded annually over the next seven years?
(b) Suppose that the price of oil is expected to start at $60 per barrel during the first year, but to in crease at the rate of 5% over the previous year?s price. What would be the present worth of the anticipated revenue stream at an interest rate of 12% compounded annually Over the next seven years?
(c) Consider part (b) again. After three years? production, you decide to sell the oil well. What would be a fair price?
What does the Federal Trade
Commission help protect?
A. All of the above
B. Trademarks
C. Copyrights
D. Patents
Answer:
A
Explanation:
The FTC's Bureau of Consumer Protection stops unfair, deceptive and fraudulent business practices by: collecting complaints and conducting investigations. suing companies and people that break the law. developing rules to maintain a fair marketplace. Meaning they stop any type of marketplace issue so the answer would be A.
all of the following are rationales given for a stock dividend or split except a. there is positive informational content associated with the announcement. b. conservation of corporate cash. c. an optimum price range does not exist. d. the price will not fall proportionately to the share increase.
The right option is c, which states that an optimum price range does not exist is not a rationale given for a stock dividend or split.
An explanation for this is that stock dividends or splits are usually carried out to increase the number of outstanding shares and decrease the price per share, making it more affordable for investors to buy into the company. This can lead to increased demand for the stock, which can drive up the price in the long run. Other rationales given for stock dividends or splits include the positive informational content associated with the announcement, conservation of corporate cash, and the belief that the price will not fall proportionately to the share increase.
Stock dividends and splits are commonly done for various reasons, such as positive informational content it is not a rationale typically given for a stock dividend or split. The statement d. the price will not fall proportionately to the share increase, is also a reason behind stock splits as it can make the stock more affordable for a wider range of investors.
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when a promissory note is received from a customer to replace an account receivable, it is known as a(n) a.account payable. b.note receivable. c.note payable. d.late payment.
Option b: When a promissory note is received from a customer to replace an account receivable, it is known/called as a(n) note receivable.
A written and signed commitment to pay back money in exchange for a loan or other funding is known as a promissory note. The principle debt amount, interest rate, maturity date, payment schedule, date and location of issuance, and the issuer's signature are all commonly included in a promissory note.
Although they may be issued by financial institutions—for example, you might be required to sign one to obtain a small personal loan—promissory notes also enable businesses and individuals to obtain financing from sources other than banks. This source can be a person or a business that is prepared to carry the note (and provide the funding) under the specified conditions. Promissory notes, in essence, provide anyone the ability to act as a lender.
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Below is a series of cost of goods sold sections for companies b, m, o, and s. Fill in the lettered blanks to complete the cost of goods sold sections.
I will fill in the lettered blanks for each company.
For Company B:
1. Beginning inventory: (a)
2. Purchases: (b)
3. Cost of goods available for sale: (a + b)
4. Ending inventory: (c)
5. Cost of goods sold: (a + b - c)
For Company M:
1. Beginning inventory: (d)
2. Purchases: (e)
3. Cost of goods available for sale: (d + e)
4. Ending inventory: (f)
5. Cost of goods sold: (d + e - f)
For Company O:
1. Beginning inventory: (g)
2. Purchases: (h)
3. Cost of goods available for sale: (g + h)
4. Ending inventory: (i)
5. Cost of goods sold: (g + h - i)
For Company S:
1. Beginning inventory: (j)
2. Purchases: (k)
3. Cost of goods available for sale: (j + k)
4. Ending inventory: (l)
5. Cost of goods sold: (j + k - l)
Now, you can fill in the actual numbers for the lettered blanks to complete the cost of goods sold sections for companies B, M, O, and S.
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If an increase in the price of one good brings about no change in demand for another good, what does this tell us about the relationship between the two goods?
If an increase in the price of one good does not affect the demand for another good, it indicates that the two goods are unrelated or have a weak relationship.
In other words, the goods are not substitutes or complements. If the two goods were substitutes, an increase in the price of one good would lead to an increase in demand for the other good. On the other hand, if the two goods were complements, an increase in the price of one good would lead to a decrease in demand for the other good.
Therefore, if there is no change in demand for another good when the price of one good increases, it suggests that the two goods are independent or weakly related.
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midwest, inc., buys candy and gum from many different manufacturers and then resells these items to a variety of different stores. midwest is an example of a(n)
Midwest, Inc. is an example of a wholesaler.
A wholesaler is a business that purchases goods in bulk from manufacturers or other suppliers and then resells them to retailers or other businesses at a markup.
Wholesalers typically operate in the middle of the supply chain, between the manufacturers or producers and the retailers or end consumers.
They may specialize in a particular type of product or serve a specific geographic region, such as the Midwest in this case.
Overall, the role of a wholesaler is to provide a convenient and cost-effective way for retailers to access a wide variety of products from multiple suppliers.
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during the year the following selected transactions affecting stockholders' equity occurred for orlando corporation: april 1: repurchased 220 shares of the company's common stock at $38 cash per share. june 14: sold 80 of the shares purchased on april 1 for $43 cash per share. september 1: sold 70 of the shares purchased on april 1 for $33 cash per share. required: 1. prepare journal entries for each of the above transactions.
To prepare the journal entries for each of the selected transactions affecting stockholders' equity that occurred for Orlando Corporation, we need to consider the impact on the company's accounts.
Here are the journal entries:
April 1:
Repurchase of 220 shares of common stock at $38 cash per share
Debit: Treasury Stock $8,360 (220 shares x $38)
Credit: Cash $8,360
June 14:
Sale of 80 shares purchased on April 1 for $43 cash per share
Debit: Cash $3,440 (80 shares x $43)
Debit: Treasury Stock $3,040 (80 shares x $38)
Credit: Gain on Sale of Treasury Stock $400 [(80 shares x $43) - (80 shares x $38)]
September 1:
Sale of 70 shares purchased on April 1 for $33 cash per share
Debit: Cash $2,310 (70 shares x $33)
Debit: Treasury Stock $2,660 (70 shares x $38)
Credit: Loss on Sale of Treasury Stock $350 [(70 shares x $38) - (70 shares x $33)]
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