Answer:
a. Transactions are posted to the general ledger.
Explanation:
Accounting cycle is an arrangement of accounting procedure in a systematic order during the accounting year for each accounting information.
The first step in accounting cycle is to analyze the given date and classify them accordingly, after which the transaction will be journalized. The next step is to Post transactions to the general ledger. Next is to prepare trial balance(unadjusted) and then record the adjusting entries. After this step, the adjusted trial balance is then prepared before preparing the financial statement and then record the closing entries.
Sam is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: In order to swim for an hour, Sam must take time away from work, where he earns $10 per hour. This is in addition to paying a $5 entrance fee for the pool. Which basic principle of individual choice do these statements best illustrate? The cost of something is what you give up to get it. Markets are usually a good way to organize economic activity. People usually exploit opportunities to make themselves better off. Trade can make everyone better off.
Answer:
The cost of something is what you give up to get it.
Explanation:
To partake in triathlon, Sam is forgoing the amount he would have earned if he went to work instead. This is known as the opportunity cost or implicit cost
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
Sam has to pay $5 to partake in the triathlon. This amount is known as explicit cost. Explicit cost is the cost incurred in carrying out an activity.
Sam's accounting cost is $5
Sam's economic cost is $5 + $10 = $15
I hope my answer helps you
Business Calculators Inc. will pay an annual dividend of $2.25 per share next year. The company just announced that future dividends will be increasing by 0.75 percent annually. How much are you willing to pay for one share of this stock if you require a rate of return of 12.25 percent?
Answer: $19.57
Explanation:
You should be willing to pay for the what the stock is valued at the moment and you can use the Gordon Growth Model to value this stock.
Formula is,
Vs = D1/ Re - g
Vs = Value of stock
D1 = the next dividend
Re = Required Return
g = growth rate
Value of stock is,
= 2.25 / ( 12.25% - 0.75%)
= $19.565
= $19.57
Cat's product manager continues to perform well in the market. However, a competing product is coming on strong and is looking to take over as the market share leader in the segment. Without sacrificing contribution margin, what can the Cat product manager do in order to improve upon the buying criteria, and thus potentially increase demand
Answer:
Increase promotion spending
Explanation:
Note that the challenge for the product is to get a demand that supersedes that of their competitor. Thus, by spending more on promotion they could still maintain the contribution margin while at the same time increase consumers demand the product.
For example, by adding extra gift items to their products consumers would likely feel motivated to buy the product over the other.
2. What does an interest inventory measure?
A. The skills you have
B. Your ability to learn
C. The things you like to do
D. The things you do extremely well
Interest inventory measures the skills u have
A rich donor gives a hospital $ 960 comma 000 one year from today. Each year after that, the hospital will receive a payment 5 % larger than the previous payment, with the last payment occurring in ten years' time. What is the present value (PV) of this donation, given that the interest rate is 9 %?
Answer:
$7,560,000
Explanation:
To solve this problem, the Present Value (PV) of a growing annuity formula is used.
The Present Value of a growing annuity is the current value of a series of payments which grows or diminishes at a constant rate each period.
The formula below represents the PV of a growing annuity:
[tex]PV=PMT *\frac{(1-(1+g)^{n}*(1+i)^{-n}) }{i-g}[/tex], ............................................. (i)
where,
PV = Present Value = ?
PMT = Periodic Payment = $960,000
i = Interest Rate = 9% = 0.09
g = Growth Rate = 5% = 0.05
n = Number of periods = 10 years
Substituting these values in equation (i), we have
[tex]PV=960000*\frac{(1-(1+0.05)^{10}*(1+0.09)^{-10} }{0.09-0.05}[/tex]
[tex]PV=960000*\frac{(1-(1.05^{10})*(1.09)^{-10}) }{0.04}[/tex]
[tex]PV=960000*\frac{(1-(1.63*0.42))}{0.04}[/tex]
[tex]PV=960000*\frac{(1-0.685)}{0.04}[/tex]
[tex]PV=960000*\frac{0.315}{0.04}[/tex]
[tex]PV=960000*7.875[/tex]
[tex]PV=$7,560,000[/tex]
PV = $7,560,000
On January 1 of the current year, Jimmy's Sandwich Company, Inc. reported stockholders' equity totaling $122,500. During the current year, total revenues were $96,000 while total expenses were $85,500. Also, during the current year the business paid $20,000 to the stockholders. No other changes in equity occurred during the year. If, on December 31 of the current year, total assets are $196,000, the change in stockholders' equity during the year was:
Answer:
The multiple choices are:
A decrease of $9,500.
An increase of $9,500.
An increase of $30,500.
A decrease of $30,500.
An increase of 73,500.
The correct option is a decrease of $9,500
Explanation:
The changes in stockholders' equity is in the form of the difference between inflow to stockholders and outflow to stockholders.
Inflow to stockholders is the earnings attributable to them in form of net income while outflow is the dividends paid to them.
net income=revenues-expenses=$96,000-$85,500=$10,500
Dividends were paid to the tune of $20,000
change in stockholders' equity=$10,500-$20,000=-$9,500
In essence ,the opening balance of stockholders' equity went down by $9,500 since the net income generated of $10,500 was not enough to fund dividend payment
Answer:
Explanation:a
g (Ignore income taxes in this problem.) Overland Corporation has gathered the following data on a proposed investment project: Click here to view Exhibit 8B-1 and Exhibit 8B-2 to determine the appropriate discount factor(s) using tables. Investment required in equipment $ 440,000 Annual cash inflows $ 77,000 Salvage value of equipment $ 0 Life of the investment 20 years Discount rate 13 % The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The internal rate of return on the investment is closest to:
Answer:
16.70%
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR can be calculated using a financial calculator:
Cash flow in year 0 = $-440,000
Cash flow each year from year one to twenty = $77,000
IRR = 16.70%
To find the IRR using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
I hope my answer helps you
NEED HELP ASAP
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2019 and the bond has a par value of $1,000. Rate Maturity Mo/Yr Bid Asked Chg Ask Yld ?? May 24 103.4690 103.5418 +.3093 6.119 5.524 May 29 104.5030 104.6487 +.4365 ?? 6.193 May 39 ?? ?? +.5483 4.151 In the above table, find the Treasury bond that matures in May 2029. What is your yield to maturity if you buy this bond? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
4.93%
Explanation:
For computing the yield to maturity we need to apply the RATE formula i.e to be shown in the attachment below:
Provided that,
Present value = $1,046.487
Future value or Face value = $1,000
PMT = 1,000 × 5.524% ÷ 2 = $27.62
NPER = 10 years × 2 = 20 years
The 10 years is come from
= May 2029 - May 2019
= 10 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after applying the above formula,
The yield to maturity is
= 2.46% × 2
= 4.93%
Hopewell Corporation Balance Sheet As of December 31, 2019 (amounts in thousands) Cash 21,000 Liabilities 20,000 Other Assets 26,000 Equity 27,000 Total Assets 47,000 Total Liabilities & Equity 47,000 Hopewell Corporation Income Statement January 1 to March 31, 2020 (amounts in thousands) Revenue 5,500 Expenses 2,600 Net Income 2,900 Between January 1 and March 31, 2020: 1. Cash decreases by $100,000 2. Liabilities decrease by $300,000 3. Paid-In Capital does not change 4. Dividends paid of $300,000 What is the value for Other Assets on March 31, 2020?
Answer:
The value for Other Assets on March 31, 2020 $29,000,000
Explanation:
Hopewell Corporation Balance Sheet As of December 31, 2019
Cash = $21,000,000
Other Assets = $26,000,000
Total Assets = $47,000,000
Liabilities = $20,000,000
Equity = $27,000,000
Total Liabilities & Equity = $47,000,000
Hopewell Corporation Income Statement January 1 to March 31, 2020
Revenue = $5,500,000
Expenses = $2,600,000
Net Income = $2,900,000
Between January 1 and March 31, 2020:
1. Cash decreases by $100,000
2. Liabilities decrease by $300,000
3. Paid-In Capital does not change
4. Dividends paid of $300,000
Assets
Cash = $21,000,000 - $100,000 = $20,000,000
Liabilities = $20,000,000 - $300,000 = $19,700,000
Equity = $27,000,000 + $2,600,000 - $300,000 = $29,300,000
Total Liabilities & Equity = $19,700,000 + $29,300,000 = $ 49,000,000
Other assets = $49,000,000 - $20,000,000 = $29,000,000
Beasley, Inc., reports the following amounts in its December 31, 2021, income statement. Sales revenue $ 350,000 Income tax expense $ 39,000 Interest expense 12,000 Cost of goods sold 125,000 Salaries expense 37,000 Advertising expense 23,000 Utilities expense 43,000 Prepare a multiple-step income statement.
Answer and Explanation:
The preparation of the multiple-step income statement is presented below:
Beasley, Inc.
Multiple-step income statement
December 31, 2021
Sales revenue $350,000
Less: Cost of goods sold -$125,000
Gross profit $225,000
Less: Operating expenses
Salaries expense -$37,000
Advertising expense -$23,000
Utilities expense -$43,000
Operating income $122,000
Less: interest expense -$12,000
Income before income tax $110,000
Less: income tax expense -$39,000
Net income $71,000
We simply deduct all the expenses from the sales revenue so that the net income could arrive
The constraint at Johngrass Corporation is time on a particular machine. The company makes three products that use this machine. Data concerning those products appear below: UE BI CR Selling price per unit $335.18 $228.46 $199.21 Variable cost per unit $259.26 $173.08 $159.61 Minutes on the constraint 7.50 4.30 5.50 Assume that sufficient time is available on the constrained machine to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource?
Answer:
Explanation:
UE BI CR
Selling price per unit $335.18 $228.46 $199.21
Variable cost per unit $259.26 $173.08 $159.61
Contribution margin $75.92 $55.38 $39.60
Per unit (a)
Amount of constraint 7.50 4.30 5.50
resources required to
produced one unit (b)
Contribution margin
per unit of the $10.12 $12.86 $7.20
constraint resources
(a) / (b)
Ranking 2 1 3
The company should be willing to pay up $7.20 per minute to produce more CR
Frank Barlowe is retiring soon, so he is concerned about his investments providing him with a steady income every year. He is aware that if interest rates , the potential earnings power of the cash flow from his investments will increase. In particular, he is concerned that a decline in interest rates might lead to annual income from his investments. What kind of risk is Frank most concerned about protecting against? Reinvestment rate risk Interest rate risk
Answer:
Increase
less
A) Reinvestment rate risk.
Explanation:
Reinvestment rate risk is demonstrated as the type of financial risk in which the investor is concerned about his investment getting canceled or stopped in the future and the other party/place might not be able to provide a similar rate of return.
In the given situation, Frank Barlowe is concerned about reinvestment risk. He is aware that he will earn a steady income from his investments as he knows that when the interest rates increase, his potential returns would increase and vice versa. But since he is retiring, he has a potential concern that if the investment gets abandoned somehow, he might not be able to reinvest his amount at the same rate and will not be able to continue with steady returns. Thus, option A is the correct answer.
Exercise 4-7 (Algo) Income statement presentation; discontinued operations; restructuring costs [LO4-1, 4-3, 4-4] Esquire Comic Book Company had income before tax of $1,650,000 in 2021 before considering the following material items: Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $405,000. The division generated before-tax income from operations from the beginning of the year through disposal of $630,000. The company incurred restructuring costs of $70,000 during the year. Required: Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
Net income = $1,353,750
Note: See the income statement below.
Explanation:
Before preparing the income statement, the following calculations are done first:
Income from operations of discontinued component = Income before-tax generated by the division - Before-tax loss on disposal = $630,000 - $405,000 = $225,000
Income from continuing operations = Income before tax - Restructuring costs = $1,650,000 - $70,000 = $1,580,000
The income statement can now be prepared as follows:
Esquire Comic Book Company
Partial Income Statement
For the year ended December 31, 2021
Details $
Income from continuing operations 1,580,000
Discontinued operations gain (loss):
Income from discontinued component 225,000
Total income before tax 1,805,000
Tax expenses (1,805,000.00 * 25%) (451,250)
Net income 1,353,750
Assume that the economy has three types of people. 20% are fad followers, 75% are passive investors and 5% are informed traders. The portfolio consisting of all informed traders has a beta of 1.4 and an expected return of 12.4%. The market has an expected return of 10% and the risk-free rate is 4%. The expected return for the fad follower's portfolio is closest to:__________.
a. 11.5%
b. 13.6%
c. 16%
d. 12.4%
Answer: a. 11.5%
Explanation:
Fad followers are those investors who follow a trend when it emerges and as such their betas will be less than that of informed traders because the informed traders would have acted first.
Using the Capital Asset Pricing Model to calculate expected return.
Er = Rf + b( Rm - Rf)
Er = Expected return
Rf = Risk Free Rate
b = Beta
Rm = Market Return.
The Expected Return for the Informed Investors is,
= 4% + 1.4 ( 10% - 4%)
= 4% + 1.4 ( 6%)
= 12.4%
With the Fad followed expected to have a lower beta and therefore a lower expected return than the Informed Investors, the only suitable option is the 11.5%.
Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100.000 shares of common stock outstanding as of the beginning of 2021. Power Drive has the following transactions affecting stockholders' equity in 2021. 0.76 points March 1 Issues 60,000 additional shares of $1 par value common stock for $57 per share. May 10 Purchases 5,500 shares of treasury stock for $60 per share. June 1 Declares a cash dividend of $1.75 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) July 1 Pays the cash dividend declared on June 1. October 21 Resells 2,750 shares of treasury stock purchased on May 10 for $65 per share Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Common Stock, $100,000; Additional Paid-in Capital, $5,000,000; and Retained Earnings, $2,500,000. Net income for the year ended December 31, 2021, is $650,000.
Required: Prepare the stockholders' equity section of the balance sheet for Power Drive Corporation as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)
Answer:
Power Drive Corporation
Stockholders' Equity Section
December 31, 2021
Paid in capital:
Common Stock $1 par $160,000
(160,000 shares authorized, 157,250
shares outstanding)
Additional paid in capital, $8,360,000
in excess of par value
Additional paid in capital, $13,750
from Treasury Stock
Total paid in capital $8,533,750
Retained earnings $2,879,625
Sub-total $11,413,375
Treasury Stock ($165,000)
Total Stockholders' Equity $11,248,375
Explanation:
beginning balances in its stockholders' equity accounts on January 1, 2021: Common Stock, $100,000 + $60,000Additional Paid-in Capital, $5,000,000 + $3,360,000 + $13,750Retained Earnings, $2,500,000 + $650,000 - $270,375 treasury stock $330,000 - $165,000Net income for the year ended December 31, 2021, is $650,000.
March 1 Issues 60,000 additional shares of $1 par value common stock for $57 per share.
Dr Cash 3,420,000
Cr Common stock 60,000
Cr Additional paid in capital 3,360,000
May 10 Purchases 5,500 shares of treasury stock for $60 per share.
Dr Treasury stock 330,000
Cr Cash 330,000
June 1 Declares a cash dividend of $1.75 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.)
Dr Retained earnings 270,375
Cr Dividends payable 270,375
July 1 Pays the cash dividend declared on June 1.
Dr Dividends payable 270,375
Cr Cash 270,375
October 21 Resells 2,750 shares of treasury stock purchased on May 10 for $65 per share
Dr Cash 178,750
Cr Treasury stock 165,000
Cr Additional paid in capital 13,750
The residents of Alaska and people throughout the world were outraged when the Exxon Valdez crashed into a shoal and dumped millions of gallons of crude oil into the pristine waters of Prince William Sound. People were upset with Exxon's response to the disaster. The company was slow to admit its mistake and even slower to implement cleanup activities. Exxon was criticized for acting in a manner that would benefit the organization but not society. In short, Exxon did not demonstrate:___________.
1. Social responsibility
2. Value conciousness
3. Gray marketing
4. Profit responsibility
5. Transactional marketing
Answer:
1. Social responsibility.
Explanation:
Social responsibility is an ethical principle or business practice that supports, that individuals or business entities are required to fulfil civic duties, such as welfare, charity, etc. for the benefit of the society at large.
Simply stated, it incorporates sustainable societal development into business models. A company's social responsibility involves the process of creating a balance between economic growth, societal welfare and largely it's environment.
In this scenario, Exxon was slow to own up to it's error and even slower in implementing cleanup activities of the pristine waters of Prince William Sound. Sequel to this, it was criticized by the residents of Alaska and others around the world for acting in a manner that would benefit the organization but not society.
Hence, Exxon did not demonstrate social responsibility.
Time Remaining 39 minutes 48 seconds00:39:48 eBookItem 1Item 1 Time Remaining 39 minutes 48 seconds00:39:48 A private, not-for-profit hospital received contributions of $50,000 from donors on June 15, 20X9. The donors stipulated that their contributions be used to purchase equipment for the hospital. As of June 30, 20X9, the end of the hospital's fiscal year, $12,000 of the contributions had been spent on equipment acquisitions. In the hospital's general fund, what account would be credited to recognize the release of the restrictions on the temporarily restricted contributions used to acquire equipment
Answer: Net Assets Released from Equipment Acquisition Restriction.
Explanation:
When the stipulations by a donor have been satisfied, the assets involved can be removed from being restricted to now being unrestricted. The account credited to recognize this is known as the Net assets released from *asset name* acquisition restriction.
In the above case, the company purchased some equipment with the money they were donated which means that the equipment had satisfied the stipulation for which they were donated funds for. The Net Assets Released from Equipment Acquisition Restriction thus needs to be credited.
Brief Exercise 233 Kinney Company purchased a truck for $66,000. The company expected the truck to last four years or 100,000 miles, with an estimated residual value of $8,000 at the end of that time. During the second year the truck was driven 27,000 miles. Compute the depreciation for the second year under each of the methods below and place your answers in the blanks provided.Units-of-activity $_________
Double-declining-balance $_________
Answer:
$15,660
$16,500
Explanation:
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1 / useful life)
2 x (1 / 4 ) = 0.5
The depreciation expense in the first year = 0.5 x $66,000 = $33,000
Book value = $66,000 - $33,000 = $33,000
The depreciation expense in the second year = 0.5 x $33,000 = $16,500
The Units of production method = (miles driven in the second year / estimated total miles that can be driven) x (Cost of asset - Salvage value)
(27,000 / 100,000) × ($66,000 - $8,000)
= 0.27 x $58,000 = $15,660
I hope my answer helps you
Which of the following statements is FALSE about opportunity cost? A. Opportunity cost exists only for goods with monetary values. B. Cost is always foregone opportunity. C. When a person buys two items, the concept of opportunity cost applies even though she can afford to buy both items. D. Opportunity cost is the next best alternative.
Answer:
A. Opportunity cost exists only for goods with monetary values.
Explanation:
Fundamentally, these are costs in economics used in analysis of a project, and it can also be used for calculation of cost benefits. It is generally known to measure or do all calculation that deals with the current and also forgone alternatives in any condition but this is mainly in economics where it is mostly used.
It is said that when a person buys two or more items, the concept of opportunity cost applies even though she can afford to buy both items and also known to be the best alternative. Here also, cost is notified as foregone opportunity.
Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales $ 1,535,000 Variable expenses 553,150 Contribution margin 981,850 Fixed expenses 1,080,000 Net operating income (loss) $ (98,150) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Division East Central West Sales $ 355,000 $ 660,000 $ 520,000 Variable expenses as a percentage of sales 53 % 23 % 41 % Traceable fixed expenses $ 296,000 $ 331,000 $ 202,000 Required: 1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $28,000 based on the belief that it would increase that division's sales by 16%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented
Answer:
Wingate Company
1. Contribution Format Income Statement (segmented by divisions):
East Central West Total
Sales $ 355,000 $ 660,000 $ 520,000 $ 1,535,000
Variable Expenses 188,150 151,800 213,200 553,150
Contribution 166,850 508,200 306,800 981,850
Traceable Fixed Exp. 296,000 331,000 202,000 829,000
Non-Traceable Fixed Expenses 251,000
Net operating income/
(Loss) (129,150) 177,200 104,800 (98,150)
2a) Increasing the West Division's monthly advertising by $28,000 based on the belief that it would increase that division's sales by 16%:
East Central West Total
Sales $ 355,000 $ 660,000 $ 603,200 $ 1,618,200
Variable Expenses 188,150 151,800 213,200 553,150
Contribution 166,850 508,200 390,000 1,065,050
Traceable Fixed Exp. 296,000 331,000 230,000 857,000
Non-Traceable Fixed Expenses 251,000
Net operating income/
(Loss) (129,150) 177,200 160,000 (42,950)
2b) The net operating income will increase by $55,200, thus reducing the loss from $98,150 to $42,950.
Explanation:
Segmenting the income statement into divisions helps management to trace the loss making division as Division East. The division has a traceable fixed cost that is far above its contribution to profit. The fixed expense must be studied, otherwise the division may be up for closure.
You are attempting to value a call option with an exercise price of $100 and one year to expiration. The underlying stock pays no dividends, its current price is $100, and you believe it has a 50% chance of increasing to $120 and a 50% chance of decreasing to $80. The risk-free rate of interest is 10%.Based upon your assumptions, calculate your estimate of the the call option's value using the two-state stock price model.
Answer:
$13.64
Explanation:
Given:
Exercise price,X = $100
Current price = $100
Value when price is up, uS = $120
Value when price is down, dS= $80
Risk free interest rate = 10%
First calculate hedge ratio, H:
[tex] H = \frac{C_u - C_d}{uS - dS} [/tex]
Where,
Cu = uS - X
= 120 - 100
= $20
[tex] H = \frac{20 - 0}{120 - 80} = \ftac{1}{2}[/tex]
A risk free portfolio involves one share and two call options.
Find cost of portfolio:
Cost of portfolio = Cost of stock - Cost of the two cells.
= $100 - 2C
This portfolio is risk free. The table below shows that
_______________
Portforlio 1:
Buy 1 share $80; Write 2 calls: $0; Total: ($80 + 0) $80
____________________
Portforlio 2:
Buy 1 share: $120; Write 2 calls: -$40; Total: ($120 - $40) $80
Check for oresent value of the portfolio:
Present value [tex] = \frac{80}{1 + 0.10} = 72.73 [/tex]
Value = exercise price - value of option
$72.73 = $100 - 2C
Find call option, C
[tex] C = \frac{100 - 72.73}{2} = 13.64 [/tex]
Call option's value = $13.64
1. How has an understanding of consumer behavior helped Coppertone grow in the United States and around the globe? 2. Describe the five-stage purchase decision process for a Coppertone customer. 3. What are the possible situational, psychological, and sociocultural influences on the Coppertone consumer purchase decision process? Situational Psychological Sociocultural 4. What specific marketing activities does Coppertone utilize to help Coppertone grow in the marketplace? 5. What challenges does Coppertone face in the future? What actions would you recommend related to each challenge?
Answer: The answers are provided below
Explanation:
1. The understanding of consumer behavior which has helped Coppertone grow in the United States and around the world are:
• Its understanding of consumer behavior was along with changing behaviour of consumers.
• Its understanding was along with consumer's changing needs.
• Providing innovative solutions that are in accordance with consumer preferences.
Note that at the beginning, Coppertone started as a tanning product, but later developed nee products when the consumers preferences changed from tanning to skin protection.
2. . The Five stage purchase decision process for a Coppertone customer are:
a. Problem recognition - This is the stage of understanding the problem.
b. Search for information. It is the stage of seeking solution to the problem
c. Comparision of alternatives - This is the stage where the comparative analysis is done. This stage is influenced by the product, price, availability etc.
d. Decision of purchasing - This is the stage of decision making that is based on the comparisons made.
e. Post-purchase feedback - This is the stage whereby the consumer will evaluate the product performance. This stage is vital to retaining existing consumers.
3. The factors that can influence the Coppertone consumer purchase decision process are:
• Psychological: It is the intention of consumers to protect their skin from the sun while going out thereby maintaining their good look.
• Sociological : It is in human behaviour to replicate the things that are being done by other people in the society.
• Situational Factor: This is a case whereby consumers are left with no other alternatives than purchasing a particular product brand to meet their need.
4. The marketing activities Coppertone utilized to help it grow in the marketplace are:
• Advertisment: Coppertone advertisment strategy really worked through its use of the advertisement campaign for “the Coppertone Girl” and also their famous tagline “Tan, Don’t Burn.” This helped spar the product’s popularity.
• Use of social media: They also engage with their customers on social media nd other websites.
5. The challenges that would be faced by Coppertone in the future are:
• There will be an unbalanced demand and supply since the requirement of the product is seasonal.
• Selective usage of the product by the customer can hampers the sale.
• There may be the need for more innovative products in order to meet customer needs.
The recommendation related to each challenges are:
• Awareness should be created among the customers about their self health and looks, in order for them to shift away from seasonal usage.
• New products should be launched aggressively. This is because customers are trendy nowadays and also appealing marketing techniques should be used.
1. When The understanding of consumer behavior that has helped Coppertone grow in the United States and around the world are:
Although, Its understanding of consumer behavior was along with changing the behavior of consumers.
Then Its understanding was along with consumers' changing needs.
Consumer behaviorAlso when Providing innovative solutions that are under consumer preferences.
Note that at the beginning, Coppertone started as a tanning product, but later developed nee products when the consumer's preferences changed from tanning to skin protection.
2. When The Five stage purchase decision process for a Coppertone customer are:
a. Problem recognition - This is the stage of understanding the problem.
b. Search for information- It is the stage of seeking a solution to the problem
c. Comparison of alternatives - This is the stage where the comparative analysis is done. This stage is influenced by the product, price, availability, etc.
d. Decision of purchasing - This is the stage of decision-making that is based on the comparisons made.
e. Post-purchase feedback - This is the stage whereby the consumer will evaluate the product performance. This stage is vital to retaining existing consumers.
3. When The factors that can influence the Coppertone consumer purchase decision process are:
Psychological: Consumers intend to protect their skin from the sun while going out thereby maintaining their good look.
Sociological: It is in human behavior to replicate the things that are being done by other people in society.
Situational Factor: This is a case whereby consumers are left with no other alternatives than purchasing a particular product brand to meet their needs.
4. When The marketing activities Coppertone utilized to help it grow in the marketplace are:
The Advertisement: when the Coppertone advertisement strategy worked through its use of the advertisement campaign for “the Coppertone Girl” and also their famous tagline “Tan, Don’t Burn.” This helped spar the product’s popularity.
Use of social media: They also engage with their customers on social media and other websites.
5. The challenges that would be faced by Coppertone in the future are:
There will be an unbalanced demand and supply since the requirement of the product is seasonal.
Then Selective usage of the product by the customer can hamper the sale.
There may be a need for more innovative products to meet customer needs.
The recommendation related to each challenge are:
Awareness should be created among the customers about their self-health and looks, for them to shift away from seasonal usage.
New products should be launched aggressively. This is because customers are trendy nowadays and also appealing marketing techniques should be used.
Find out more information about consumer behavior here:
https://brainly.com/question/26324990
There are 100 used laptop g for sale on the market. 40% of them are in good condition, and the rest of them are broken, which is the common knowledge to the owners and the buyers. Owners of broken laptops are willing to sell them for $300. Owners of good used laptops are willing to sell them if the price is above $1600 but will keep them if the price is lower than $1600. There is a large number of potential buyers who are willing to pay $2000 for a good laptop and $600 for a broken laptop. Buyers can't tell good laptops from bad, but original owners know. In equilibrium, what could be the maximum price set for a broken laptop to be sold
Answer:
In equilibrium the maximum price set for a broken laptop to be sold is $600
Explanation:
According to the given data we have the following:
It is given that 40% laptops are in good condition. This implies that 60% are in bad condition.
In ordert to calculate the maximum price set for a broken laptop to be sold we would have to calculate the expected price that the buyers will be willing to pay for a laptop as follows:
Expected price=0.60($2000)+0.40($600)
Expected price=$1,200+$240
Expected price=$1,440
As the owners of good laptops are willing to sell their laptops for $1,800, whis is more that $1,440, they will not sell their products.
This implies that only bad laptops are sold in the market. The willingless to pay for the bad laptops is $600
Therefore, In equilibrium the maximum price set for a broken laptop to be sold is $600
New Age Makeup produces face cream. Each bottle of face cream costs $10 to produce and can be sold for $13. The bottles can be sold as is, or processed further into sunscreen at a cost of $14 each. New Age Makeup could sell the sunscreen bottles for $23 each.
A) Face cream must be processed further because its profit is $9 each.
B) Face cream must not be processed further because costs increase more than revenue.
C) Face cream must not be processed further because it decreases profit by $1 each.
D) Face cream must be processed further because it increases profit by $3 each.
Answer:
Face cream must not be processed further because costs increase more than revenue.
Explanation:
Profit = Total revenue - Total cost
If sold as face cream, total profit = $13 - $10 = $3
If processed into sunscreen , total cost = $10 + $14 = $24
Profit = $24 - $23 = $1
The profit from selling the product as a face cream is greater than the profit of developing it to a face cream. So the product shouldn't be developed further.
I hope my answer helps you
a) Depreciation on the company's equipment for 2017 is computed to be $16,000.
b) The Prepaid Insurance account had a $9,000 debit balance at December 31, 2017, before adjusting for the costs of any expired coverage. An analysis of the company’s insurance policies showed that $900 of unexpired insurance coverage remains.
c) The Office Supplies account had a $540 debit balance on December 31, 2016; and $2,680 of office supplies were purchased during the year. The December 31, 2017, physical count showed $637 of supplies available.
d) One-fourth of the work related to $11,000 of cash received in advance was performed this period.
e) The Prepaid Insurance account had a $5,100 debit balance at December 31, 2017, before adjusting for the costs of any expired coverage. An analysis of insurance policies showed that $4,200 of coverage had expired.
f) Wage expenses of $5,000 have been incurred but are not paid as of December 31, 2017.
Prepare adjusting journal entries for the year ended (date of) December 31, 2017, for each of these separate situations.
Answer:
Adjusting Journal Entries:
a) Debit Depreciation Expense - Equipment $16,000
Credit Accumulated Depreciation - Equipment $16,000
To record depreciation charge for the year.
b) Debit Insurance Expense $8,100
Credit Insurance Prepaid $8,100
To record insurance expense for the year.
c) Debit Office Supplies Expense $2,583
Credit Office Supplies Account $2,583
To record office supplies used for the year.
d) Debit Deferred Revenue $2,750
Credit Service Revenue $2,750
To record revenue for work done this period.
e) Debit Insurance Expense $4,200
Credit Prepaid Insurance $4,200
To record insurance expense for the year.
f) Debit Wages Expense $5,000
Credit Wages Payable $5,000
To record unpaid wages as of December 31, 2017.
Explanation:
Adjusting journal entries are entries made in the journal to accrue expenses and revenue in line with the accrual concept and the matching principle of U.S. GAAP. The concept and principle require that expenses and revenue are matched in the period they were incurred and not when they were actually paid for or received.
A company excludes from the current assets section, the amount of cash restricted for purposes other than payment of current obligations or for use in current operations.
1. True
2. False
Land held for speculation is reported in the long-term investment section of the balance sheet.
1. True
2. False
Financial flexibility measures the ability of an enterprise to take effective actions to alter the amounts and timing of cash flows
1. True
2. False
Companies determine cash provided by operating activities by converting net income on an accrual basis to a cash basis. 1. True
2. False
Answer:
1. True.
2. True.
3. True.
4. True.
Explanation:
1. True: A company excludes from the current assets section, the amount of cash restricted for purposes other than payment of current obligations or for use in current operations.
2. True: Land held for speculation is reported in the long-term investment section of the balance sheet because they are fixed assets.
3. True: Financial flexibility measures the ability of an enterprise to take effective actions to alter the amounts and timing of cash flows.
4. True: Companies determine cash provided by operating activities by converting net income on an accrual basis to a cash basis.
You are a crude oil dealer. You intend to sell 40,000 barrels of crude oil in December. Each contract calls for delivery of 1,000 barrels of oil. Current futures price of one barrel of crude oil is $70. You believe that there are only four possible oil prices in December which are $50, $60, $70, and $80. i. Explain what action you would take to protect from changes in oil prices in December. Provide reasons for your action. ii. Calculate the total proceeds for each of the possible prices in December. Question 3 3 marks
Answer:
i. buy put option
ii. Proceeds will be as follows:
$50 : 2,000,000
$60 : 2,400,000
$70 : 2,800,000
$80 : 3,200,000
Explanation:
i. A put is option is one in which buyer of the option has a right to sell the asset at an agreed price at a later date. There can be a premium on the purchase of an option but its safe to buy an option to reduce risk exposure.
ii. $50 : 2,000,000 (40,000 barrels * $50)
$60 : 2,400,000 (40,000 barrels * $60)
$70 : 2,800,000 (40,000 barrels * $70)
$80 : 3,200,000 (40,000 barrels * $80)
8. Kidder Corporation hired Louis as a stockbroker. The employment contract provided that all disputes between the parties would be decided by arbitration. The employment agreement was a standardized form prepared by the corporation. Does Louis have a valid challenge to the legality of the contract
Answer:
idk
Explanation:
Consider the following scenario:
Suppose that a chicken farm uses a nearby stream to dispose of the wastes released by its chickens. These wastes flow downstream into a lake that has become thick with algae and polluted due to the minerals in the waste matter. The local office of a nonprofit environmental organization successfully lobbies state regulators to stop the farm's pollution.
1. Which of the following types of private solutions to the externality of pollution has occurred in this case?
Integration of different types of businesses
Contracts
Moral codes and social sanctions
Charities
2. It's important to note that sometimes private solutions to externalities do not work. For example, this occurs when communications barriers or social customs are important enough relative to the potential gains involved that -------.
Answer: 1. Charities
2. Government action the only viable solution
Explanation:
Externalities are the resultant additional effects that are experienced by others as a result of actions by an economic agent who does not bear the extra aformentioned cost or benefit that their actions bring about.
1. Private Solutions to Externalities include any solution independent of the government.
The above Private Solution is Charities because it was a Non-profit Environmental Organization that dealt with the lobbying for the reduction to be acted upon by state agents. These types of organisations are usually Charities.
2. If it is shown that the potential gains are viewed to be quite high as in this case then negotiating with the polluters might not work. In this case Government Intervention is needed to force the polluters to adhere to rules and regulations.
Before closing the office for the day, Lisa took a phone call from a corporate customer who wanted to make a reservation for three nights at Wildwood Inn. The total cost came to $473.00. The customer asked Lisa to charge the total amount to the company's account. Which T-Account or T-Accounts listed below correctly show how a sale on account should be recorded?
Answer:
A sale on account would be recorded with the following T-Accounts:
Sales Revenue - increases, so the amount is credited.
Dr. Cr.
$473.00
Accounts Receivable - is an asset, and increases, so the amount is debited.
Dr. Cr.
$473.00
