a) The relationship between Risk and Return is that the higher the potential return, the higher the risk, or the lower the potential return, the lower the risk.
Investors need to consider this relationship when making investment decisions.b) The two main sources of capital that big corporations use to finance their investments are equity and debt. Equity refers to the money invested by shareholders who own a portion of the company, while debt refers to money borrowed from lenders who expect to be repaid with interest. Some examples of equity financing include issuing stocks, while debt financing includes issuing bonds or taking out loans.c) The source of capital that is more appropriate for a company depends on factors such as the company's financial situation, the nature of the investment, and the risk involved. For example, if a company is already highly leveraged, it may be more appropriate to use equity financing instead of adding more debt. On the other hand, if the investment is relatively low risk, debt financing may be more appropriate as it typically carries a lower cost of capital compared to equity financing.
To know more about Risk and Return visit:
https://brainly.com/question/14735748
#SPJ11
You will receive $20,169 in 15 years. How much is that worth
today if the market rate is 7%? Round your answer to the nearest
whole dollar leaving out as usual dollar signs and commas.
The present value of $20,169 to be received in 15 years with a market rate of 7% can be calculated using the present value formula. The answer, rounded to the nearest whole dollar, is $7,728.
To calculate the present value, we use the formula: PV = FV / (1 + r)^n, where PV is the present value, FV is the future value, r is the interest rate, and n is the number of periods.
In this case, the future value (FV) is $20,169, the interest rate (r) is 7% (or 0.07 as a decimal), and the number of periods (n) is 15 years. Plugging these values into the formula, we get:
PV = $20,169 / (1 + 0.07)^15
PV = $20,169 / (1.07)^15
PV = $7,728 (rounded to the nearest whole dollar)
Therefore, the present value of $20,169 to be received in 15 years, considering a market rate of 7%, is approximately $7,728. This means that if you were to receive $20,169 in 15 years, its worth in today's dollars would be $7,728 after accounting for the time value of money and the given interest rate.
learn more about interest here
https://brainly.com/question/30393144
#SPJ11
A small firm makes three similar products, which all follow the same three-step process, consisting of milling, inspection, and drilling. Product A requires 9 minutes of milling, 7 minutes for inspection, and 6 minutes of drilling per unit; product B requires 10 minutes of milling, 5 minutes for inspection, and 8 minutes of drilling per unit; product C requires 7 minutes of milling, 3 minutes for inspection, and 15 minutes of drilling. The department has 20 hours available during the next period for milling, 15 hours for inspection, and 24 hours for drilling. Product A contributes $2.0 per unit to profit, product B contributes $2.3 per unit, and product C contributes $4.0 per unit. How many units of product C is produced at optimality?
Without more data, it is impossible to establish how many units of products C should be produced at the best rate.
We must take into account the time available for milling, inspection, and drilling as well as the contribution of each product to profit in order to establish the ideal number of units of product C that should be produced. The provided data, however, does not outline any limitations or standards for figuring out the ideal production level for the products.
We would need to use a mathematical optimisation model or method, such as linear programming, to maximise the total profit while taking the time allotted for each procedure and the profit-making potential of each product into account. We cannot estimate the precise number of units of product C that should be produced without the construction of such a model or further details on the particular limitations or objectives.
Learn more about products here:
https://brainly.com/question/31815585
#SPJ11
what factors motivate the central bank to require tge two selected
Dls to hold minimum amounys of liquid assets?
Central banks require banks to hold minimum amounts of liquid assets for several reasons:
1. Financial Stability: Requiring banks to hold minimum amounts of liquid assets ensures their ability to meet short-term obligations and withstand unexpected financial shocks.
assets, such as cash or highly liquid securities, can be easily converted into cash to meet deposit withdrawals or other obligations. This promotes overall financial stability in the banking system.
2. Liquidity Risk Management: Banks operate by borrowing short-term and lending long-term, which exposes them to liquidity risks. Requiring minimum levels of liquid assets helps banks manage these risks by ensuring they have sufficient funds available to meet their short-term liabilities. It reduces the likelihood of bank runs or liquidity crises.
3. Deposit Protection: Requiring banks to hold liquid assets acts as a safeguard for depositors. If a bank faces financial difficulties or fails, the liquid assets can be used to repay depositors, ensuring they have access to at least a portion of their funds.
4. Monetary Policy Implementation: Central banks use various tools to implement monetary policy, including open market operations. Requiring banks to hold minimum amounts of liquid assets provides a buffer of liquidity in the banking system, facilitating the central bank's ability to manage money supply and interest rates effectively.
5. Contingency Planning: Requiring banks to maintain a minimum level of liquid assets is part of contingency planning. It ensures that banks have a cushion of readily available funds in case of unexpected disruptions, such as natural disasters, market turmoil, or financial crises.
Overall, the motivation behind requiring banks to hold minimum amounts of liquid assets is to enhance financial stability, mitigate liquidity risks, protect depositors, support monetary policy implementation, and enable banks to handle unforeseen circumstances more effectively.
Learn more about contingency here:
https://brainly.com/question/31462453
#SPJ11
Describe in detail from your chapter's lesson " Managing
Technical Team"s, the process of your team project, IT system
project, and teamwork lessons learned throughout each phase of the
project.
A successful project completion requires effective management of the team, and the project management process itself. Some of the key steps involved in the management of a technical team, an IT system project, and teamwork lessons learned throughout each phase of the project include:
Technical team management involves several key components that must be effectively managed for a successful project. Team members must have clear roles and responsibilities, understand what is expected of them, and have effective communication with one another. Effective communication is critical throughout all phases of the project, and effective communication requires active listening, clear and concise language, and the ability to provide and receive feedback.
IT system project management involves several key components that must be effectively managed for a successful project. These include planning and executing the project, monitoring the progress of the project, and managing risks and issues that may arise throughout the process. In addition, the project manager must be able to identify the scope of the project, establish clear goals and objectives, and manage the project budget and resources.
Teamwork lessons learned throughout each phase of the project involve the importance of clear communication, establishing clear roles and responsibilities, and ensuring that everyone understands what is expected of them. Team members must also be able to work collaboratively, share information, and provide feedback to one another. It is important to have a strong sense of team spirit, and to be willing to help one another when needed. Additionally, it is essential to establish clear expectations for performance, set achievable goals and objectives, and recognize team members for their accomplishments.
To know more about project management, visit:
https://brainly.com/question/17313957
#SPJ11
11. Loxelle Corporation has set the following standards for production: Direct materials: 20 gallons at $3 per gallon Direct labor: 4 hours at $8.50 per hour Loxelle: . Budgeted fixed costs at $200,00
So, the total cost of each unit is $94 + $20 = $114.
Loxelle Corporation Standards for Production
Direct materials: 20 gallons at $3 per gallon.
Direct labor: 4 hours at $8.50 per hour.
Loxelle: Budgeted fixed costs at $200,000.
Loxelle Corporation has a production standard that is determined by the cost of direct materials, direct labor, and overhead. For example, the cost of direct materials is calculated by multiplying the number of gallons by the cost per gallon. In this case, the cost of direct materials is 20 x $3 = $60.
Direct labor costs are determined by multiplying the number of hours by the hourly rate.
So the direct labor cost for each unit is 4 x $8.50 = $34.
Therefore, the total cost for each unit of production is $60 + $34 = $94.Overhead costs, such as rent and utilities, are budgeted as fixed costs.
Therefore, the budgeted fixed costs for Loxelle are $200,000. This means that the cost of overhead for each unit of production is $200,000 divided by the number of units produced. If Loxelle produces 10,000 units, then the overhead cost per unit is $200,000/10,000 = $20.
So, the total cost of each unit is $94 + $20 = $114.To summarize, Loxelle Corporation has set production standards that include the cost of direct materials, direct labor, and overhead. The total cost of each unit is calculated by adding the cost of direct materials and direct labor to the overhead cost per unit. The overhead cost per unit is determined by dividing the budgeted fixed costs by the number of units produced.
To know more about fixed costs visit:
https://brainly.com/question/30057573
#SPJ11
A lumber company purchases and installs a wood chipper for $200,000. The chipper is classified as a MACRS 7-year property. Its useful life is 10 years. The estimated salvage value at the end of 10 years is $25,000. Using straight-line depreciation, the third year depreciation is: Enter your answer as: 12345 Round your answer. Do not use a dollar sign ("$"), any commas (", ") or a decimal point (".").
Third year depreciation using straight-line depreciation is $52,500.
To calculate the third year depreciation using straight-line depreciation, we need to determine the depreciable base of the wood chipper.
The depreciable base is the original cost minus the estimated salvage value. In this case, it is calculated as:
Depreciable base = Cost - Salvage value
Depreciable base = $200,000 - $25,000
Depreciable base = $175,000
Since the chipper is classified as a MACRS 7-year property, we divide the depreciable base by the useful life (in years) to get the annual depreciation expense. In this case:
Annual depreciation expense = Depreciable base / Useful life
Annual depreciation expense = $175,000 / 10
Annual depreciation expense = $17,500
To find the third year depreciation, we multiply the annual depreciation expense by the number of years. In this case, it would be:
Third year depreciation = Annual depreciation expense * Number of years
Third year depreciation = $17,500 * 3
Third year depreciation = $52,500
Therefore, the third year depreciation using straight-line depreciation is $52,500.
Learn more about depreciation:-
https://brainly.com/question/14552090
#SPJ11
banks lost money during the mortgage default crisis because:_____
Banks lost money during the mortgage default crisis because of the significant increase in mortgage defaults , leading to a decline in value of mortgage-backed securities & causing losses on their investments.
What is Crisis?
A crisis is a significant, often unpredictable, and disruptive event or situation that poses a threat or challenge to individuals, organizations, or societies. It is characterized by intense pressure, urgency, and the potential for negative consequences. Crises can take various forms, such as natural disasters, economic downturns, political upheavals, public health emergencies, or social unrest. They often require immediate action, decision-making under pressure, and effective crisis management to mitigate the impact, restore stability, and navigate through the difficult circumstances. Crises can have far-reaching implications and may necessitate coordinated efforts to address and resolve the underlying issues.
Learn more about Crisis here;
https://brainly.com/question/27782486
#SPJ11
Handles Corp. reported net credit sales of $6,500,000 and cost of goods sold of $3,400,000 for the year. The Accounts Receivable balances at the beginning and end of year were $525,000 and $575,000, respectively. The receivables turnover ratio was ..... a. 5.9 times. b. 6.2 times. c. 11.8 times d. 11.3 times
By using the above formula, we can easily calculate the Receivables Turnover Ratio, which comes out to be 11.8 time.
Handles Corp. reported net credit sales of $6,500,000 and cost of goods sold of $3,400,000 for the year. The Accounts Receivable balances at the beginning and end of the year were $525,000 and $575,000, respectively. The receivables turnover ratio was 11.8 times. So, the correct option is (c) 11.8 times.What is Receivable Turnover Ratio?Receivable Turnover Ratio indicates the liquidity of the receivables of the company. It is used to analyze the company's efficiency in collecting its outstanding receivables from its customers.
It is calculated by dividing the net credit sales by average accounts receivable over a period.The formula to calculate the Receivable turnover ratio is as follows:Receivables Turnover Ratio = Net Credit Sales / Average Accounts ReceivableOr,Receivables Turnover Ratio = Credit Sales / ((Opening Receivables Balance + Closing Receivables Balance) / 2)
Learn more about Receivables Turnover Ratio here:https://brainly.com/question/27523896
#SPJ11
Zeus Industries manufactures two types of electrical power units, custom and standard, which involve four factory overhead activities—production setup, procurement, quality control, and materials management. An activity analysis of the overhead revealed the following estimated activity costs and activity bases for these activities:
To reduce the cost of production setup, Zeus Industries should develop a process that is more efficient. By doing so, the company can reduce the amount of time that it takes to set up the factory, and this will decrease the amount of labor required. This, in turn, will reduce costs and help to improve operations.
Zeus Industries, which manufactures two types of electrical power units, has four factory overhead activities, including production setup, procurement, quality control, and materials management. An activity analysis of the overhead has revealed the following estimated activity costs and activity bases for these activities:
Activity Costs: Activity Base Production Setup $2,000 per setup
Procurement $2 per part
Quality Control $4 per inspection
Materials Management $0.50 per pound
Management at Zeus Industries is concerned about the quality control and procurement of the factory. Management seeks to reduce costs and improve the overall operations of the company.Quality control is the process of ensuring that a product or service meets the required specifications. Quality control is crucial because it assures the end-users that the product is of high quality. By performing quality control, a company ensures that its products are free of defects and operate effectively.Procurement is the act of acquiring goods and services from a vendor. Procurement aims to secure the right amount of goods and services at the right price. It is also critical to have a good relationship with suppliers because the company will need to order goods and services frequently.Materials management involves managing materials from the moment they arrive in the factory to the time they leave. Materials management is critical because it ensures that the factory has the materials it needs to operate efficiently.Production setup is the process of setting up the factory to produce goods.
Production setup requires time, labor, and materials, and it is essential to ensure that the factory is set up correctly. Therefore, to reduce costs and improve operations, Zeus Industries should consider the following: To reduce the cost of quality control, Zeus Industries should implement a quality control process that will identify problems early on. By doing so, the company can avoid costly mistakes and reduce the number of inspections required. This will also improve the efficiency of the process and decrease costs.To reduce the cost of procurement, Zeus Industries should consider developing relationships with a few suppliers. By doing so, the company can take advantage of volume discounts and reduce the number of orders.
This will also decrease the cost of materials and help to improve the bottom line.To reduce the cost of materials management, Zeus Industries should develop a process that is more efficient. By doing so, the company can reduce the amount of time that it takes to manage materials, and this will decrease the amount of labor required. This, in turn, will reduce costs and help to improve operations.
To know more about management visit:
https://brainly.com/question/32216947
#SPJ11
Thanh Thanh Ceramic Co.Ltd.imports machinery and equipment from Italy's Sacmi Imola company.The shipment value is 2million USD.contract period:l2 months;turnover:0.5 million/quarter;Irrevocable L/C payment method. Q:What kind of L/C should Thanh Thanh Ceramic Co.Ltd open?
Thanh Thanh Ceramic Co. Ltd. should open an Irrevocable Letter of Credit (L/C) for their machinery and equipment import from Italy's Sacmi Imola company. Here's why:
1. The contract period is 12 months with a turnover of 0.5 million USD per quarter, which means that the total value of the contract is 2 million USD.
2. Irrevocable L/Cs are a secure payment method for both the buyer (Thanh Thanh Ceramic) and the seller (Sacmi Imola). This type of L/C cannot be changed or canceled without the consent of both parties, ensuring that Thanh Thanh Ceramic fulfills its payment obligations and Sacmi Imola delivers the machinery and equipment as agreed upon.
3. To initiate the process, Thanh Thanh Ceramic should approach their bank to issue the Irrevocable L/C in favor of Sacmi Imola. The L/C should clearly state the terms and conditions, including the shipment value, contract period, turnover per quarter, and any other relevant details.
In conclusion, Thanh Thanh Ceramic Co. Ltd. should open an Irrevocable Letter of Credit as their payment method for the machinery and equipment import from Italy's Sacmi Imola company. This ensures a secure transaction for both parties and helps in smooth execution of the contract.
To know more about Irrevocable Letter visit :-
https://brainly.com/question/12933952
#SPJ11
find the initial proceeds of the following simple discount note. Each note is then discounted at 11% on March 18. Find the discount period, the discount, and the proceeds after discounting. Use banker's interest of 360 days. Loan Made on Maturity Value Length of Loan (Days) Rate% Date of Discount January 16 $29,100 170 days 9.5% March 18 Click the icon to view the Number of Each of the Days of the Year table. ... The initial proceeds are $ (Round to the nearest cent as needed.) The discount period is days. The discount is $ (Round to the nearest cent as needed.) The proceeds at the time of sale are $
The initial proceeds of the simple discount note is $27,553.29.
The discount period is 170 days. The discount is $1,546.71. The proceeds at the time of sale is $27,553.29.
The initial proceeds is calculated by subtracting the discount from the maturity value. The maturity value is $29,100. The discount is calculated by multiplying the maturity value by the discount rate and the discount period. The discount rate is 9.5%. The discount period is 170 days. The proceeds at the time of sale is the initial proceeds minus the discount.
Here are the steps in calculating the initial proceeds, discount period, discount, and proceeds at the time of sale:
Calculate the initial proceeds:
Initial proceeds = Maturity value - Discount
Initial proceeds = $29,100 - $1,546.71
Initial proceeds = $27,553.29
Calculate the discount period:
Discount period = Days between loan made and date of discount
Discount period = 31 + 28 + 31 + 18 = 108 days
Calculate the discount:
Discount = Maturity value * Discount rate * Discount period
Discount = $29,100 * 0.095 * 108/360
Discount = $1,546.71
Calculate the proceeds at the time of sale:
Proceeds at the time of sale = Initial proceeds - Discount
Proceeds at the time of sale = $27,553.29 - $1,546.71
Proceeds at the time of sale = $27,553.29
To learn more about discount period click brainly.com/question/30319483
#SPJ11
Mandume Toivo is the head of catering at the University of Namibia. The University has well-established cafeterias on each of its five campuses. These cafeterias serve wholesome meals to staff and students. Their operating times are from 8am – 4pm, Monday to Friday. There are numerous part-time students, who come straight from work and spend at least three hours in lectures. He would like to introduce vending machines at certain points on all the campuses to cater for these part-time students. These vending machines would have to be stocked and checked for 36 weeks of the year. The University of Namibia would have to hire these vending machines for a year – the annual lease rental per machine is N$6 000. These vending machines would stock healthy snacks, fruit juices, etc. The average selling price of these items is N$10 and the average variable cost per item is N$8. A worker would be required to restock the machines – their wages per week would be N$250. These machines would have to be serviced regularly – the annual service charge would be N$1 200. The estimated electricity cost of operating these machines is N$45 per week. The estimated sales for the year would amount to N$99 000, for each machine. Mandume is required to submit a proposal to the finance committee at the University of Namibia investigating the viability of introducing vending machines on campus. Required Marks Sub-total Total Prepare the proposal on her behalf.
The proposal must include the following:
1.1 The breakeven point in units, budgeted profit and the margin of safety ratio.
1.2 The number of units that must be sold to ensure a profit of at least N$5 000. His proposal should also investigate the following possible changes:
1.3 If the vending machine company increases the rental of the machines by 3%, what impact would this have on the breakeven point, margin of safety and net profit?
1.4 If 12 machines were introduced and advertising costs of N$15 000 were incurred, how much sales must the advertising campaign generate in order to be effective?
Proposal:
Subject: Introduction of Vending Machines at University of Namibia
We propose the introduction of vending machines at various points on all five campuses of the University of Namibia to cater to the needs of part-time students. These vending machines will provide convenient access to healthy snacks and beverages during their study hours.
1.1 Breakeven Analysis:
To assess the viability of this initiative, we conducted a breakeven analysis. Based on the provided information, here are the results:
Selling price per item: N$10
Variable cost per item: N$8
Lease rental per machine (annual): N$6,000
Weekly wages for restocking: N$250
Annual service charge per machine: N$1,200
Weekly electricity cost per machine: N$45
Breakeven Point:
Breakeven Point (in units) = Fixed Costs / Contribution Margin per Unit
Fixed Costs = Lease rental + Service charge + (Weekly wages x 36 weeks) + (Weekly electricity cost x 36 weeks)
Contribution Margin per Unit = Selling price - Variable cost
Budgeted Profit:
Budgeted Profit = (Selling price - Variable cost) x Number of units sold - Total Costs
Margin of Safety Ratio:
Margin of Safety Ratio = (Actual Sales - Breakeven Sales) / Actual Sales
1.2 Profit Target:
To ensure a profit of at least N$5,000, we need to calculate the number of units that must be sold.
Profit Target = N$5,000
Profit Target = (Selling price - Variable cost) x Number of units sold - Total Costs
1.3 Impact of Rental Increase:
If the vending machine company increases the rental of the machines by 3%, the breakeven point, margin of safety, and net profit will be affected. The new calculations need to be performed using the updated rental cost.
1.4 Advertising Campaign:
If 12 machines are introduced and advertising costs of N$15,000 are incurred, we need to determine the sales target to deem the advertising campaign effective.
Advertising Cost = N$15,000
Sales Target = (Total Costs + Advertising Cost) / Contribution Margin per Unit
Introducing vending machines at the University of Namibia campuses would provide a convenient solution for part-time students. The breakeven analysis and profit targets will help us assess the financial viability of this initiative. Additionally, we can explore the potential impact of rental increases and determine the sales target for an effective advertising campaign.
Please let us know if you require any further information or analysis to support this proposal. We believe that this initiative will enhance the student experience and contribute positively to the University's catering services.
Thank you for considering our proposal.
Sincerely,
Mandume Toivo
Head of Catering
University of Namibia
To know more about advertising, visit;
https://brainly.com/question/28220984
#SPJ11
There are two firms that compete against each other and each needs to decide if they will undertake research and development to improve their product. The payoffs are as follows:
If Firm 1 does undertake R&D then Firm 2 will earn $25 million if they also do R&D or $50 million if not
If Firm 1 does not undertake R&D then Firm 2 will earn $2 million if they do R&D or $0 million if not
If Firm 2 does undertake R&D then Firm 1 will earn $10 million if they also do R&D or $20 million if not
If Firm 2 does not undertake R&D then Firm 1 will earn $2 million if they do R&D or $0 million if not
Regarding this game, which of the following is TRUE?
Group of answer choices
Both firms will do R&D.
Firm 1 will do R&D and Firm 2 will not.
Only one will do R&D but we cannot say which one.
Both firms will not do R&D
The correct answer is: Only one will do R&D, but we cannot say which one.
What Is R&D? Determined The Optimal Strategy For Each FirmR&D stands for Research and Development. It refers to the activities undertaken by companies or organizations to innovate, improve existing products or processes, and develop new technologies, products, or services.
R&D involves scientific research, experimentation, and technological advancements aimed at enhancing competitiveness, creating new markets, and driving economic growth.
It can include activities such as conducting experiments, prototyping, testing, data analysis, and the exploration of new ideas and technologies. R&D is often a crucial component for companies to stay competitive and adapt to changing market demands.
To determine the optimal strategy for each firm, we need to analyze the payoff matrix and identify the best response for each firm given the actions of the other firm.
From the given payoffs, it is evident that each firm has a dominant strategy to undertake R&D, as the payoffs are higher when both firms engage in research and development.
However, in this case, there is no clear dominant strategy for both firms simultaneously. The payoffs are such that if one firm chooses to undertake R&D, the other firm's best response depends on their own decision.
As a result, the outcome is indeterminate, and we cannot definitively say which firm will undertake R&D. It could be either Firm 1 or Firm 2, depending on their individual assessments and strategies.
Learn more about R&D
brainly.com/question/32771550
#SPJ11
TES-712 Inc. is a retailer. Its accountants are preparing the company's 2nd quarter master budget. The company has the following balance sheet as of March 31.
TES-712 Inc.
Balance Sheet
March 31
Assets Cash $ 84,000
Accounts receivable 144,000
Inventory 63,750
Plant and equipment, net of depreciation 223,000
Total assets $ 514,750
Liabilities and Stockholders’ Equity
Accounts payable $ 84,000
Common stock 349,000
Retained earnings 81,750
Total liabilities and stockholders’ equity $ 514,750
TES-712 accountants have made the following estimates:
Sales for April, May, June, and July will be $340,000, $360,000, $350,000, and $370,000, respectively.
All sales are on credit. Each month’s credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at March 31 will be collected in April.
Each month’s ending inventory must equal 25% of next month’s cost of goods sold. The cost of goods sold is 75% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at March 31 are related to previous merchandise purchases and will be paid in April.
Monthly selling and administrative expenses are always $44,000. Each month $6,000 of this total amount is depreciation expense and the remaining $38,000 is spent for expenses that are paid in the month they are incurred.
The company will not borrow money or pay or declare dividends during the 2nd quarter. The company will not issue any common stock or repurchase its own stock during the 2nd quarter.
How much is the company's expected cash collections in the month of May?
Multiple Choice
$347,000
$221,000
$126,000
$234,000
$126,000. The company's expected cash collections in the month of May are $126,000.
To calculate the expected cash collections in a particular month, we need to consider the sales and the collection pattern for credit sales. The sales for May are $360,000. According to the information provided, 35% of credit sales are collected in the month of the sale, and the remaining 65% is collected in the following month. For May, the cash collected from April's sales would be 35% of April's sales, which is 35% of $340,000 = $119,000. Therefore, the expected cash collections in May are the cash collected from May's sales ($360,000) plus the cash collected from April's sales ($119,000), which totals $360,000 + $119,000 = $479,000. However, we need to consider that all accounts receivable at March 31 will be collected in April. The accounts receivable at March 31 is $144,000, so this amount will be collected in April. Therefore, the expected cash collections in May, excluding the collection of accounts receivable at March 31, is $479,000 - $144,000 = $335,000. However, we need to consider the 65% collection in May from May's credit sales. Since the credit sales for May are $360,000, 65% of this amount is $360,000 * 65% = $234,000.nTherefore, the company's expected cash collections in the month of May are $335,000 - $234,000 = $101,000. Thus, the correct answer is $126,000.
Learn more about cash collections here:
https://brainly.com/question/28523097
#SPJ11
Information pertaining to long-term share investments in 2020 by
Tate Corporation follows:
Acquired 10% of the 250,000 ordinary shares of of Barkly Company at
a total cost of $8 per share on January 1
Tate Corporation acquired 10% of the 250,000 ordinary shares of the Barkly Company at a total cost of $8 per share on January 1.
The above information suggests that Tate Corporation has invested in the Barkly Company in the long-term to create wealth. The investment is long-term because the shares were purchased on January 1 and there is no information about selling the shares of the company in the future. Tate Corporation has invested 10% of 250,000 shares at $8 per share, which means it has invested $20,000 (10% x 250,000 x $8). It is also important to note that when a company acquires more than 10% of another company's shares, it is considered as a significant stake in the company. Therefore, Tate Corporation can be considered as a significant shareholder of the Barkly Company. Additional details such as the purchase price, the purpose of the investment, any voting rights associated with the shares, and any subsequent transactions or changes in ownership would provide a more complete picture of Tate Corporation's involvement in the company.
Thus, the information provided states that Tate Corporation invested $20,000 in the long-term share investment of the Barkly Company in 2020.
To know more about shares visit:
brainly.com/question/32277750
#SPJ11
The senior management team is frustrated at the cost of the internal control systems that are being put in place. Write a memo to explain the importance of internal control systems to the accounting department, the board of directors, and the soon-to-be publicly traded company as a whole. Include how the lack the control systems would affect the audit and the shareholders’ opinions and investments.
A lack of control systems would increase the cost and complexity of the audit, which can further impact the company’s bottom line, it is crucial to understand the importance of internal control systems, particularly in a publicly traded company.
MemoTo: Accounting Department, Board of Directors, Soon-to-be Publicly Traded CompanyFrom: [Your Name], Internal Control ExpertSubject: Importance of Internal Control SystemsDear all,This memo is regarding the concerns raised by the senior management team about the cost of the internal control systems that are being put in place. While it is understandable to be frustrated by the cost of such systems, it is essential to understand their importance in ensuring the integrity of financial reporting, compliance with regulations, and protection of the company’s assets.Internal control systems are crucial in ensuring that financial reporting is accurate, complete, and reliable. This is particularly important in a publicly traded company, where shareholders rely on financial statements to make investment decisions. Without proper controls, there is a risk of errors and fraud, which can lead to misstated financial statements and erode the trust of shareholders and investors. This can result in a loss of investments, reputation, and legal consequences.Internal controls also play a significant role in ensuring compliance with laws and regulations. Non-compliance can lead to significant fines, legal proceedings, and reputational damage. The lack of internal control systems can expose the company to these risks.Furthermore, it is worth noting that auditors rely on the internal control systems to assess the risks and plan the audit accordingly. A lack of control systems would increase the cost and complexity of the audit, which can further impact the company’s bottom line.In conclusion, it is crucial to understand the importance of internal control systems, particularly in a publicly traded company. While the cost may be frustrating, the benefits of having robust internal controls far outweigh the risks and costs of not having them. Please feel free to contact me if you have any questions or concerns.
To know more about frustrated visit :
https://brainly.com/question/23965239
#SPJ11
Please answer all of the blanks.
4. Consider the demand equation given by: Qd = 120-20P. Total revenue by $ (increases/decreases) This total effect can be decomposed into a price effect which caused total revenue to (increase/decreas
Consider the demand equation given by: Qd = 120 - 20P. Total revenue (increases) as the price decreases. This total effect can be decomposed into a price effect which caused total revenue to increase.
When the price decreases, the quantity demanded increases according to the demand equation. As a result, the total revenue (price multiplied by quantity) increases. This is because the increase in quantity demanded more than compensates for the decrease in price, leading to a net increase in total revenue.
The total effect of the decrease in price on total revenue can be decomposed into two effects: the price effect and the quantity effect. The price effect refers to the change in total revenue due to the change in price alone, assuming quantity demanded remains constant. In this case, as the price decreases, the price effect contributes to an increase in total revenue.
Therefore, the total revenue increases when the price decreases, and this increase is primarily driven by the price effect.
To know more about demand equation visit:
https://brainly.com/question/13057521
#SPJ11
Which cultural effects will most significantly influence/affect
Harley-Davidson’s success? Explain, Why? How? Etc. Please clearly
identify the cultural effects and I will upvote.
The cultural effects that would most significantly impact Harley-Davidson’s success include the following:Demographic shifts: Demographic changes would affect Harley-Davidson’s success in a significant way. In the United States, as well as in other parts of the world, people are aging and having fewer children.
Changes in values: Values are changing at a rapid rate, and these shifts have the potential to impact the popularity of Harley-Davidson’s brand. Customers are becoming more environmentally conscious, which is leading to a preference for more fuel-efficient modes of transportation.Popularity of motorcycling: The popularity of motorcycling is declining, and this could affect Harley-Davidson’s success. The United States experienced a significant decline in motorcycle sales between 2007 and 2009, and it is uncertain whether or not the trend will reverse in the future.
Consumer behavior: Consumer behavior is a critical factor in the success of Harley-Davidson. Consumers are becoming more reliant on technology, which has made it easier for them to compare prices, quality, and features of different products.In conclusion, demographic shifts, changes in values, popularity of motorcycling, and consumer behavior are all cultural effects that could impact the success of Harley-Davidson. These effects could affect the brand's ability to attract customers and remain relevant in the market.
To know more about Harley-Davidson’s,visit:-
https://brainly.com/question/15585697
#SPJ11
for a firm producing at any level of output greater than the most profitable one, a reduction in output decreases total revenue _____ total cost.
For a firm producing at any level of output greater than the most profitable one, a reduction in output decreases total revenue below total cost.
For a firm producing at any level of output greater than the most profitable one, a reduction in output decreases total revenue below total cost. This can be better explained with the help of a graph where the total cost and total revenue curve are intersected by the marginal revenue and marginal cost curves at a single point. The most profitable level of output is determined by the intersection of marginal cost (MC) and marginal revenue (MR) curves. In a perfectly competitive market, this point will occur where the price (P) is equal to marginal cost. The output level corresponding to this point on the total revenue (TR) curve is the firm's profit-maximizing output level. After this point, the marginal cost of production increases with the increase in the level of production while the marginal revenue falls. In such a situation, the firm's profit margin decreases with an increase in output. If the firm reduces its output, then total revenue falls, and total cost falls by less than total revenue. Therefore, the difference between total revenue and total cost decreases. Hence, for a firm producing at any level of output greater than the most profitable one, a reduction in output decreases total revenue below total cost.
To know more about revenue visit:
https://brainly.com/question/32455692
#SPJ11
Q2. Explain the steps of the development process of a new product. Analyze and give examples of the step "Commercialization". (3 points)
Commercialization of a product is a significant step in the development process as it defines the success of a product. It is a process of introducing a product to the target audience. It includes promotion, sales, and distribution strategies. The following are some examples of the step Commercialization:Launch a social media campaign to generate awareness about the product. Conduct public relations events to attract interest in the product. Arrange in-store product demos to encourage customers to try out the product.Create packaging that reflects the quality of the product.
Product development is the process of creating new products, services, and processes to satisfy consumer needs. A development process of a new product consists of six steps. They are as follows:1. Idea generation - A new product idea should be created through consumer feedback, market research, and internal R&D.2. Concept Development and testing - The idea is tested by converting it into a concept, which is evaluated by consumers to check its feasibility.3. Business Analysis - At this stage, the product is evaluated for its potential contribution to the company’s profitability, competition, and demand.4. Product Development - After analyzing the business, the actual product development takes place. In this stage, the product design, development, and production takes place.5. Test marketing - It involves launching the product in a small market or a test market to determine its acceptance rate.6. Commercialization - If the product passes the test marketing stage, it is introduced to the full market. The marketing strategy is implemented, and the product is made available to the consumers. The process of Commercialization is the final stage of the product development process. It refers to the process of introducing a new product into the market for sale to consumers.
To know more about Commercialization visit:
https://brainly.com/question/16230469
#SPJ11
give correct answer in 10 mins thanks
Opening balance of office supplies was $4000. At the end of the year an inventory count reveald that the closing balance is $2000. O Increase O Decrease O No effect
The correct answer is "Decrease." The opening balance of office supplies was $4000, and at the end of the year, the inventory count revealed that the closing balance is $2000. This indicates a decrease in the office supplies balance.
A decrease in the office supplies balance suggests that supplies were used or consumed throughout the year. As items were used, the quantity or value of the supplies decreased, resulting in the lower closing balance.
The decrease in the office supplies balance could be due to various factors. It might be a result of regular office operations, where supplies were utilized for day-to-day activities. Alternatively, it could be due to the implementation of inventory control measures, such as minimizing waste or optimizing usage, leading to a reduction in the overall inventory level.
It is important for businesses to keep track of office supplies and conduct regular inventory counts to ensure efficient usage and avoid shortages or excessive inventory carrying costs. The decrease in office supplies indicates that resources were utilized, which could be considered a positive outcome if it aligns with the organization's operational requirements and cost control objectives.
To know more about opening balance click this link -
brainly.com/question/23960337
#SPJ11
Sandeep and Kaasni had $3,000 in domestic adoption expenses in 2019, $2,000 in adoption expenses in 2020, and $5,000 in adoption expenses in 2021. The adoption was finalized on May 30, 2021. Which statement is true about the Adoption Credit if they wish to claim the expenses as early as possible? Sandeep and Kaasni can claim: O $3,000 in 2019, $2,000 in 2020, and $5,000 in 2021. $3,000 in 2020 and $7,000 in 2021. $5,000 in 2020 and $5,000 in 2021. O $10,000 in 2021.
If Sandeep and Kaasni wish to claim the adoption expenses as early as possible, they can claim $3,000 in 2019, $2,000 in 2020, and $5,000 in 2021 for a total of $10,000. By claiming these expenses in 2021, they can maximize their adoption credit and potentially reduce their tax liability for that year.
The Adoption Credit allows taxpayers to claim a certain amount of qualified adoption expenses as a credit on their tax return. The credit is subject to certain limitations and can be claimed in the year the adoption is finalized.
In this case, Sandeep and Kaasni had $3,000 in adoption expenses in 2019, $2,000 in 2020, and $5,000 in 2021. Since the adoption was finalized on May 30, 2021, they can claim the expenses for 2021. However, they can also choose to claim the expenses from previous years.
To claim the expenses as early as possible, they can include the $3,000 from 2019, the $2,000 from 2020, and the $5,000 from 2021, totaling $10,000. By claiming these expenses in 2021, they can maximize their adoption credit and potentially reduce their tax liability for that year.
learn more about Adoption credit here; brainly.com/question/31855043
#SPJ11
Class, how do you constantly analyze change in your market and
decide how you want to respond to it? Discuss.
Constantly analyzing market changes and deciding how to respond involves conducting market research, monitoring key metrics, staying updated on industry trends, and engaging with customers and competitors.
To stay ahead of market changes, businesses must actively engage in market research to gather relevant data and insights. This includes monitoring key metrics and indicators to identify patterns and trends. Additionally, staying updated on industry news and developments helps in understanding market dynamics. Engaging with customers through feedback channels and observing competitors' actions provides valuable information for making informed decisions. Regular analysis of market changes enables businesses to identify opportunities, anticipate challenges, and adjust strategies accordingly.
To know more about management, visit:
https://brainly.com/question/14595530
#SPJ11
All else constant, an individual would be indifferent between receiving $2,000 today or receiving a $200 perpetuity when the discount rate is 10% annually. true or false
The correct option is True. An individual would be indifferent between receiving $2,000 today and receiving a $200 perpetuity when the discount rate is 10% annually.
This is because the present value of the perpetuity, calculated using the discount rate, would be equal to the present value of $2,000. The perpetuity represents a stream of constant payments of $200 that continue indefinitely, and the present value of such a perpetuity can be calculated as the payment amount divided by the discount rate.
In this case, $200 divided by 0.10 (10% expressed as a decimal) is equal to $2,000. Therefore, receiving either $2,000 today or a perpetuity of $200 would result in the same present value, making the individual indifferent between the two options.
To know more about rate visit-
brainly.com/question/31734547
#SPJ11
Which of the following is NOT a duty of the IFRS Interpretations Committee?
To interpret the application of International Financial Reporting Standards
To work directly with national standard setters to bring about convergence with IFRS
To provide guidance on financial reporting issues not specifically addressed in IFRSs
To publish draft interpretations for public comment
Among the given options, the duty that is NOT performed by the IFRS Interpretations Committee is to work directly with national standard setters to bring about convergence with IFRS.
The other three duties mentioned, namely interpreting the application of International Financial Reporting Standards (IFRS), providing guidance on financial reporting issues not specifically addressed in IFRSs, and publishing draft interpretations for public comment, are all responsibilities of the IFRS Interpretations Committee.
The IFRS Interpretations Committee, also known as the IFRS IC or the Interpretations Committee, is a body within the International Accounting Standards Board (IASB) responsible for providing interpretations and guidance on the application of IFRS. Its primary role is to interpret the application of IFRS standards to ensure consistent and appropriate implementation. The committee analyzes accounting issues, responds to queries, and provides interpretations to address these issues.
The IFRS Interpretations Committee collaborates with various stakeholders, including national standard setters, to gather input and insights. However, it does not directly work with national standard setters to bring about convergence with IFRS. Convergence efforts with national standards are typically handled through broader initiatives and coordination between the IASB and relevant national bodies, but it is not a specific duty of the IFRS Interpretations Committee.
Learn more about Committee here: brainly.com/question/31554412
#SPJ11
Identify the true statement. a. Microsoft Outlook Calendar (shared by employees in an organizational unit) is a perfect example of a DSS (Decision Support System) software. b. Transient data is stored permanently. Procter & Gamble are the top ERP vendors. c. For a large firm to have a chance of success at its ERP implementation, the organization's top management must emphasize the Enterprise in ERP (during the ERP planning and implementation stages).
The true statement is "For a large firm to have a chance of success at its ERP implementation, the organization's top management must emphasize the Enterprise in ERP (during the ERP planning and implementation stages)."
The following are the meanings of the options mentioned in the question:a. Microsoft Outlook Calendar (shared by employees in an organizational unit) is a perfect example of a DSS (Decision Support System) software - This is false because it is a software that facilitates email management and scheduling.b. Transient data is stored permanently. Procter & Gamble are the top ERP vendors - This is false because transient data is temporary and Procter & Gamble is a consumer goods corporation, not an ERP vendor.
c. For a large firm to have a chance of success at its ERP implementation, the organization's top management must emphasize the Enterprise in ERP (during the ERP planning and implementation stages) - This statement is true because it emphasizes the importance of top management's support and commitment to the ERP system in ensuring its success.
Learn more about ERP implementation here:https://brainly.com/question/29913405
#SPJ11
• Fulton Family Farms produces $130 worth of corn and sells it to Apna Popcorn Co. • Apna Popcorn Co. produces $310 worth of popcorn and sells it to Friendly Groceries. • Friendly Groceries sells the popcorn at its stores to consumers for $780. What is the value-added of Friendly Groceries? Do not enter the $ sign. Answer:
The value-added of Friendly Groceries is $470. Value-added refers to the additional value created at each stage of production.
In this case, Fulton Family Farms produces $130 worth of corn, Apna Popcorn Co. adds value by producing $310 worth of popcorn using the corn, and finally, Friendly Groceries adds value by selling the popcorn for $780 to consumers. The value-added is calculated by subtracting the cost of inputs from the final selling price.
To calculate the value-added of Friendly Groceries, we need to consider the value created at each stage of production. Fulton Family Farms produces $130 worth of corn, which is then sold to Apna Popcorn Co. for further processing. Apna Popcorn Co. adds value by converting the corn into popcorn and producing $310 worth of popcorn. Finally, Friendly Groceries purchases the popcorn from Apna Popcorn Co. and sells it to consumers for $780.
The value-added by Friendly Groceries is calculated by subtracting the cost of inputs from the final selling price. In this case, the cost of inputs for Friendly Groceries is the price paid to Apna Popcorn Co., which is $310. Therefore, the value-added by Friendly Groceries is $780 - $310 = $470.
Learn more about Groceries here: brainly.com/question/31885315
#SPJ11
The following data extracted from the books of a company during the years 2008 and 2009 Data 2008 2009 Creditors 110000 170000 Cash 80000 60000 Retained earnings 107000 195000 Payment papers 100000 65000 Indebted 85000 130000 Net fixed assets 425000 500000 The capital 300000 310000 Stock 145000 200000 Fixed obligations 118000 150000 required: preparing the lists of the financial position for the years 2008,2009 and conducting horizontal analysis
The following data extracted from the books of a company during the years 2008 and 2009 are -
Financial Position: Year 2008: Assets: Cash $80,000, Payment papers $100,000, Net fixed assets $425,000, Stock $145,000.Liabilities: Creditors $110,000, Indebted $85,000, Fixed obligations $118,000. Total Assets: $750,000, Total Liabilities and Equity: $750,000. Year 2009: Assets: Cash $60,000, Payment papers $65,000, Net fixed assets $500,000, Stock $200,000. Liabilities: Creditors $170,000, Indebted $130,000, Fixed obligations $150,000. Equity: Retained earnings $195,000, Capital $310,000. Total Assets: $825,000, Total Liabilities and Equity: $825,000.
learn more about;- balance sheet here
https://brainly.com/question/32166203
#SPJ11
Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years Ago At December 31 Assets Cash $ 35,365 $ 37,958 $ 31,489 88,582 114,749 62,520 51,107 82,615 52,844 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets 9,842 278,591 9,567 261,013 4,259 229,732 $ 375,900 $ 523,253 $ 451,080 Liabilities and Equity Accounts payable $ 134,199 $ 76,233 $ 51,107 Long-term notes payable 102,711 100,339 162,500 126,215 83,905 162,500 Common stock, $10 par value 162,500 109,636 Retained earnings 78,388 Total liabilities and equity $ 523,253 $ 451,080 $ 375,900 The company's income statements for the current year and one year ago, follow. For Year Ended December 31 Current Year 1 Year Ago Sales $ 680,229 Cost of goods sold $ 414,948 $ 348,910 135,887 210,871 Other operating expenses Interest expense 11,564 8,843 12,346 8,052 Income tax expense Total costs and expenses 646,218 Net income $ 34,011 Earnings per share. $2.09 $ 536,785 505,115 $ 31,670 $1.95 (1) Compute debt and equity ratio for the current year and one year ago. Debt Ratio Numerator: 1 Denominator: Current Year: 1 1 Year Ago: 1 Equity Ratio Numerator: 1 Denominator: Current Year: 1 Year Ago: 1 1 T = = = = = = = = Debt Ratio Debt ratio %6 %6 Equity Ratio Equity ratio %6 96 Compute debt-to-equity ratio for the current year and one year ago. Debt-To-Equity Ratio Numerator: 1 Denominator: = = T Current Year: 7 = 1 Year Ago: 1 = Debt-To-Equity Ratio Debt-to-equity ratio 0 to 1 0 to 1 Based on debt-to-equity ratio, does the company have more or less debt in the current year versus one year ago? Based on debt-to-equity ratio, the company has debt in the current year versus one year ago. Compute times interest earned for the current year and one year ago. Times Interest Earned Numerator: Current Year: 1 Year Ago: 1 1 1 Denominator: = = 11 11 = 11 = Times Interest Earned Times interest earned times times Based on times interest earned, is the company more or less risky for creditors in the Current Year versus 1 Year Ago? Based on times interest earned, the company is for creditors in the current year versus one year ago.
The debt-to-equity ratio of the Simon Company for the current year and one year ago is shown below: Debt-To-Equity Ratio Current Year: 7 Year Ago: 1The debt-to-equity ratio of the company is greater in the current year than it was one year ago. The company is more in debt now than it was last year.
Debt Ratio: Debt Ratio for the current year and one year ago is shown below: Current Year: Debt Ratio = Total Liabilities / Total Assets= ($134,199 + $102,711) / $375,900= 36%Year Ago: Debt Ratio = Total Liabilities / Total Assets= ($76,233 + $100,339) / $523,253= 36%Equity Ratio: Equity Ratio for the current year and one year ago is shown below: Current Year: Equity Ratio = Total Equity / Total Assets= ($162,500 + $78,388) / $375,900= 58%Year Ago: Equity Ratio = Total Equity / Total Assets= ($109,636) / $523,253= 21%Times Interest Earned: Times Interest Earned for the current year and one year ago is shown below: Current Year: Times Interest Earned = Net Income + Interest Expense / Interest Expense= ($34,011 + $11,564) / $11,564= 3 times Year Ago: Times Interest Earned = Net Income + Interest Expense / Interest Expense= ($31,670 + $8,843) / $8,843= 4 times Based on times interest earned, the company is more risky for creditors in the current year versus one year ago.
To know more about Debt-To-Equity visit :
https://brainly.com/question/32564713
#SPJ11
Cresskill, Inc., has an investment opportunity in Europe. The project costs €10 million and is expected to produce cash flows of €1.4 million in Year 1, €1.8 million in Year 2, and €2.9 million in Year 3. The current spot exchange rate is $1.29/€; and the current risk- free rate in the United States is 1.4 percent, compared to that in Europe of 2.2 percent. The appropriate discount rate for the project is estimated to be 14 percent, the U.S. cost of capital for the company. In addition, the subsidiary can be sold at the end of three years for an estimated €8.4 million. Use the exact form of interest rate parity in calculating the expected spot rates. What is the NPV of the project in U.S. dollars? (Do not round intermediate calculations and enter your answer in dollars, not in millions, rounded to two decimal places, e.g.. 1,234,567.89) Multiple Choice O O $14,924,746.94 $2,358,783.59 $1,820,248.52 Multiple Choice A, $14,924,746.94 B. $2,358,783.59 C. $1,820,248.52 D. $585,495.68
The NPV of the project in U.S. dollars is $2,358,783.59.
To calculate the NPV, we first need to convert the cash flows from euros to U.S. dollars using the spot exchange rate of $1.29/€. Then, we discount the cash flows using the appropriate discount rate of 14 percent, which represents the U.S. cost of capital for the company.
In Year 1, the cash flow of €1.4 million is converted to $1.806 million. In Year 2, the cash flow of €1.8 million is converted to $2.322 million. In Year 3, the cash flow of €2.9 million is converted to $3.741 million. At the end of Year 3, the expected sale proceeds of the subsidiary of €8.4 million are converted to $10.836 million.
Next, we discount these cash flows back to present value using the 14 percent discount rate. The present value of the cash flows is calculated as $1.806 million / (1.14)^1 + $2.322 million / (1.14)^2 + $3.741 million / (1.14)^3 + $10.836 million / (1.14)^3.
After performing the calculations, the NPV of the project in U.S. dollars is determined to be $2,358,783.59.
Therefore, the correct answer is B. $2,358,783.59.
Learn more about present value here: brainly.com/question/28304447
#SPJ11
