Some countries have oil as a natural resource and bronze plate inc, based in illinois, is considering building a facility in one of those foreign countries since it does not have easy access to oil near its manufacturing plant. Which theory of foreign direct investment provides an explanation for this decision?
A) eclectic paradigm
B) infant industry argument
C) protectionism argument
D) product life cycle theory
E) new trade theory

Answers

Answer 1

Answer: A) eclectic paradigm

Explanation:

An Eclectic Paradigm is also called a OLI Framework which is an acronym that stands for Ownership, Location, Internationalization.

Companies use this theory in cost based analysis to determine if they can reduce costs by producing in house as opposed to from the market.

It is usually applied to the area of Foreign Direct Investment where companies use it to decide if it is better to invest in another country and have easier access to goods that it needs as opposed to buying it from the market. If it is shown that they stand to gain more from investing directly in another country, they will use this option.

This is the theory that Bronze Plate Inc wants to use.


Related Questions

Plum Corporation (a C corporation and a computer manufacturer) donated 100 laptop computers to a local university (a qualified educational organization) this year. The computers were constructed by Plum earlier this year, and the university will use the computers for research and research training. Plum's basis in the computers is $35,000, and their fair market value is $120,000. What is Plum's deduction for the contribution of the computers (ignoring the taxable income limitation)?

Answers

Answer:

Plum’s deduction for the contribution of the computers is $70,000

Explanation:

According to the given data the contribution of the computers qualifies for the increased contribution amount available with respect to certain inventory.

Therefore,  The contribution amount is equal to the lesser of :

1) $35,000 basis + 50 % * ( $120,000 FMV - $35,000 basis ) = $ 77,500 ( basis + 50 % of the appreciation on the property )

2) $35,000 * 2 = $ 70,000 ( twice the property's basis )

Therefore, Plum’s deduction for the contribution of the computers is $70,000.

Answer:

$70,000

Explanation:

Solution

Recall that:

Plum's basis in the computers is= $35,000

The fair market value is = $120,000.

Now,

We find the deduction for plum's corporation towards the contribution of computers.

Thus,

The donation of the computers allows for the increased amount  contribution at hand with respect to certain inventory. The contribution amount is equal to the lesser of the following:

So,

35000 basis + 50 % * ( 120000 FMV - 35000 basis ) = $ 77500 ( basis + 50 % of the appreciation on the property )

Then

35000 * 2 = $ 70000 ( twice the property's basis )

Hence, Plum’s deduction for the contribution of the computers is 70000.

Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $330,000. During 2021, Halifax sold merchandise on account for $11,800,000. Halifax's merchandise costs is 70% of merchandise selling price. Also during the year, customers returned $345,000 in sales for credit, with $191,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year.

Required:
a. Prepare the entry to record the merchandise returns and the year-end adjusting entry for estimated returns.
b. What is the amount of the year-end allowance for sales returns after the adjusting entry is recorded?

Answers

Answer:

Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $330,000. During 2021, Halifax sold merchandise on account for $11,800,000. Halifax's merchandise costs is 70% of merchandise selling price. Also during the year, customers returned $345,000 in sales for credit, with $191,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year.

Explanation:

Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $330,000. During 2021, Halifax sold merchandise on account for $11,800,000. Halifax's merchandise costs is 70% of merchandise selling price. Also during the year, customers returned $345,000 in sales for credit, with $191,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year.

Banfield Corporation makes three products that use compound W, the current constrained resource. Data concerning those products appear below: VP YI WX Selling price per unit $ 248.04 $ 230.66 $ 505.44 Variable cost per unit $ 190.71 $ 172.14 $ 388.80 Centiliters of compound W 3.90 3.80 8.10

Answers

Answer:

B) YI, VP, WX

Explanation:

VP YI WX

Selling price per unit

$248.04 $230.66 $505.44

Variable cost per unit

190.71 $172.14 $388.80

Contribution margin per unit

(Selling price - variable cost)

$57.33 $58.52 $116.64

The amount of the constrained resource that would be required to produce one unit

3.90 3.80 8.10

Therefore:

$57.33÷3.90=$14,70

$58.52÷3.80 =$15.40

$116.64÷8.10=$14.40

Therefore the Contribution margin per unit of the constrained resource would be

$14.70 $15.40 $14.40

Therefore the Ranking the products in order of their current profitability from most profitable to least profitable would be:

YI =$15.90

VP=$14.70

WX=$14.40

Which is YI VP WX

Go to the internet and find a news article published within the last month that discusses changes in demand and supply of particular goods/services, summarize key points and post in the Discussions area. Refer to week 2 content materials and use specific economic vocabulary within your summary, i.e. demand, quantity demanded, determinants of demand, shifts in demand curve, etc. Likewise with supply. Also you should discuss changes in equilibrium quantity and equilibrium price.

Answers

Answer: The explanation is provided below

Explanation:

Below article is the summary of the acceleration of inflation in the emerging markets that was published in 2018.

According to the article, inflation in an economy is caused by an adverse supply shock or as a result of the expansionary fiscal policy or the expansionary monetary policy.

In an adverse supply shock, total quantity of basic goods will reduce drastically causing the aggregate demand to rise exponentially and therefore, push prices higher and then gradually lead to inflation.

Also, the continous and eventual implementation of the expansionary fiscal or monetary policy through continous tax cuts or by increasing government spending or reducting interest rates, lead into significant increase in the aggregate demand and as a result, prices rise eventually resulting in hyperinflation in the economy. This will also lead to increase in the real GDP of the economy.

Different tools in the monetary policy framework can be used to control inflation such as government securities,

the cash reserve ratio, interest rates. To reduce recession, government utilize automatic stabilizer in order to boost the economy.

Berk Company produces three products: Tic, Tac, and Toe. Tic requires 160 machine setups, Tac requires 150 setups, and Toe requires 190 setups. Berk has identified an activity cost pool with allocated overhead of $32,000 for which the cost driver is machine setups. How much overhead is assigned to the Tic product?

Answers

Answer:

Overhead assigned to Tic= $10,240

Explanation:

Activity-based costing is a form of absorption costing where overheads are charged to product using cost drivers.  

Under this method, overheads are first analyzed and categorized by the activities responsible for them and then charged to product based on the amount of benefits enjoyed using cost drivers.

Activity rate per driver is calculated as:

Activity overhead for the period / Total cost drivers for the period

Set -up activity  overhead = $32,000

Total expected cost drivers for activity set up  = sum of the set ups for the three products

Total set ups= 160 +150 + 190 = 500  set ups

Overhead rate per set up

= $32,000/500 set ups

= $64  per set up

Overhead assigned to Tic = Overhead rate per set up × No of setups for TIC

= $64  per setup ×160=$10,240

Overhead assigned to Tic= $10,240

Liu Electronics budgeted sales of $400,000.00 for the month of November and cost of goods sold equal to 65 percent of sales. Beginning inventory was $80,000.00 and ending inventory is estimated at $72,000.00. The budgeted purchases for November are:________

Answers

Answer:

Purchases= $252,000

Explanation:

Giving the following information:

Sales= $400,000

Cost of goods sold equal to 65 percent of sales.

Beginning inventory= $80,000

Ending inventory= $72,000

To calculate the purchase required, we need to use the following formula:

Purchases= sales + desired ending inventory - beginning inventory

Purchases= (400,000*0.65) + 72,000 - 80,000

Purchases= $252,000

Using a method of trend​ projection, the monthly sales for Yazici​ Batteries, Inc., were as​ follows: Month Sales Feb 21 Jan 20 Mar 15 Apr 15 May 13 Jun 16 Jul 17 Aug 17Sept 20Oct 22 Nov 23 Dec 23The forecast for the next month (Jan) using the naive method =_____sales. The forecast for the next period Jan using a 3 month moving average approach =_____sales. The forecast for the next period Jan using a 6 month weighted average with weights of 0.10, 0.10, 0.10, 0.20, 0.20 and 0.30, where the heaviest weights are applied to the most recent month =_____sales. Using exponential smoothing with α = 0.35 and a september forecast of 20.00, hte forecast for the next period Jan =_____sales. Using a method of trend projection, the forecast for the next month Jan =_____sales. The method that can be used for making a forecast for the month of March is_____.

Answers

Answer:

the answer is C or b im not 100% sure

Suppose initially, vertical portion of the supply curve intersects the demand curve on its downward portion. Graphically show the case where an increase in the interest rate paid on reserves does NOT lead to a change in the equilibrium fed funds rate.

Answers

Answer:

Kindly Check Explanation section

Explanation:

NB: Since, we are to show graphically and there is need to draw, kindly check the attached file for the graph that shows the case where an increase in the interest rate paid on reserves does NOT lead to a change in the equilibrium fed funds rate.

The concept of RESERVE is very important in accounting. The amount of money that is saved up from the normal profit of a business organization or company or a country which is being used for further efficient Production In the long run is known as RESERVE.

For a country, it is the central bank in such country that pays the interest with regards to reserves that are in excess.

It must be noted that as the rate of supply increases , the rate of at which the value of price is also reduces. Hence, when there is an increase in the interest rate paid on reserves the whole demand does not shoot up.

NB: The initial equilibrium is at E( the point at which D(A) and P(A) meets and an increase causes it to meet at the point D(B) and P(B).

Suppose Rebecca needs a dog sitter so that she can travel to her sister’s wedding. Rebecca values dog sitting for the weekend at $200. Susan is willing to dog sit for Rebecca so long as she receives at least $175. Rebecca and Susan agree on a price of $185. Suppose the government imposes a tax of $30 on dog sitting. What is the deadweight loss of the tax?

Answers

Answer:

The deadweight loss of the tax is $25

Explanation:

In order to calculate the deadweight loss of the tax we would have to make the following calculation:

deadweight loss of the tax=maximum willingness to pay - minimum willingness to accept

maximum willingness to pay=$200

minimum willingness to accept =$175

deadweight loss of the tax=$200-$175

deadweight loss of the tax=$25

The deadweight loss of the tax is $25

Answer: $25

Explanation:

Given Data:

Rebecca value for dog sitting = $200

Susan’s minimum agreed price = $175

Rebecca and Susan agreed price = $185

Government tax on dog sitting = $30

Dead weight loss = Rebecca value - Susan list price

= $200 - $175

= $25

The dead weight loss of tax is $25

"A long time customer has purchased securities in a margin account and is experiencing a temporary cash shortfall. The customer tells the registered representative that he cannot pay on settlement; and the registered representative offers to lend the customer the necessary funds. This action is:"

Answers

Answer: Prohibited.

Explanation:

The Financial Industry Regulatory Authority (FINRA) frowns upon the action described above.

FINRA strongly prohibits the personal borrowing of money by the representative to a customer or vice versa. The only time this prohibition can be waved is if the parties are married or family.

Seeing as there was no mention of the parties being family, this action is prohibited.

The Work in Process Inventory account of a manufacturing company has a $7,728 debit balance. The company applies overhead using direct labor cost. The cost sheet of the only job still in process shows direct material cost of $2,800 and direct labor cost of $1,600. Therefore, the company's predetermined overhead rate is:

Answers

Answer:

The company's predetermined overhead rate is 208%

Explanation:

In order to calculate the company's predetermined overhead rate we would have to calculate first the Overhead applied as follows:

o verhead applied=Work in process balance-Direct Material-Direct Labor

o verhead applied=$7,728-$2,800-$1,600

o verhead applied=$3,328

Therefore, Overhead application rate = $3,328/$1,600= 217%

Overhead application rate =208%

The company's predetermined overhead rate is 208%

Answer:

208%

Explanation:

Work In Progress= Direct materials + Direct labor+ Over Head

$7,728 = $2,800 + $1,600 + OH

$7,728=$4,400

$7,728-$4,400

OH=$3,328

OH rate = $3,328/$1,600

= 208%

Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31 follow. Debit Credit a. Interest revenue $ 14,500 b. Depreciation expense—Equipment $ 34,500 c. Loss on sale of equipment 26,350 d. Accounts payable 44,500 e. Other operating expenses 106,900 f. Accumulated depreciation—Equipment 72,100 g. Gain from settlement of lawsuit 44,500 h. Accumulated depreciation—Buildings 175,500 i. Loss from operating a discontinued segment (pretax) 18,750 j. Gain on insurance recovery of tornado damage 29,620 k. Net sales 1,003,500 l. Depreciation expense—Buildings 52,500 m. Correction of overstatement of prior year’s sales (pretax) 16,500 n. Gain on sale of discontinued segment’s assets (pretax) 36,500 o. Loss from settlement of lawsuit 24,250 p. Income tax expense ? q. Cost of goods sold 487,500 Assume that the company’s income tax rate is 40% for all items. Compute the tax effects and after-tax amounts of the three items labeled pretax. 2a. What is the amount of income from continuing operations before income taxes? 2b. What is the amount of the income tax expense? 2c. What is the amount of income from continuing operations?

Answers

Answer:

2a) 330,500

2b) 132,200

2c) 198,300

Explanation:

Loss from operating a discontinued segment (pretax) 18,750

Correction of overstatement of prior year’s sales (pretax) 16,500

Gain on sale of discontinued segment’s assets (pretax) 36,500

United Resources Company obtained a charter from the state in January of this year. The charter authorized 206,000 shares of common stock with a par value of $3. During the year, the company earned $493,000 Also during the year, the following selected transactions occurred in the order given: Sold 88,000 shares of the common stock in an initial public offering for $14 per share. Repurchased 26,000 shares of the previously issued shares for $17 per share. Resold 8,000 shares of treasury stock for $20 per share. Required: Prepare the stockholders' equity section of the balance sheet at the end of the year. (Amounts to be deducted should be indicated with a minus sign.)

Answers

Answer:

United Resources Company

Stockholders section of the balance sheet at the end of the year:

Common Stock:

Authorized 206,000 shares at $3 par value

Issued 88,000 shares                                 $264,000

Additional Paid-in Capital

($968,000 -364,000 + 136,000)                   740,000

Treasury Stock ($78,000 - 24,000)               (54,000)

Total Equity                                                 $950,000

Explanation:

a) The authorized common stock is stated in the balance sheet as a memorandum record.  It does not form part of the calculation of equity since all the shares have not been issued.

b) Issued common stock is valued at 88,000 * $3 = $264,000

c) The difference in the par value and the issue price is recorded in the Additional Paid-in Capital Account.  It is also where the increases and decreases in Treasury stock above or below par values are recorded.

d) Treasury Stock is a common stock contra account which records the repurchase and resale of common stock.  Two methods are used.  One recognizes the whole cost of treasury stock in the Treasury Stock account.  It is called the costing method.  The other method, called the par-value method, recognizes the above and below par value in the Additional Paid-in Capital.

Analyzing Adjusting Journal Entries, Prepaid Asset and Deferred Revenue Voss Inc., an accounting firm, adjusts and closes its accounts each December 31. Below are two situations requiring adjusting entries.
During the current year, supplies were purchased for $1,125 cash. The inventory of supplies at the prior year-end was $225. At the current year-end, inventory remaining was $360. Prepare the adjusting entry required for each of the following separate cases.
a. Case A-the $1,125 was debited to Supplies Expense. What is the balance of Supplies at year-end?
General Journal
Ref. Account Name Dr. Cr.
Case A Supplies 225 0
Supplies Expense 0 225
Case A: Balance of Supplies at year-end: $ 225
b. Case B the $1,125 was debited to supplies. What is the balance of Supplies at year-end?
General Journal
Ref. Account Name Dr. Cr.
Case B Supplies 900 0
Expense Supplies 0 900
Case B: Balance of Supplies at year-end: $ 225

Answers

Answer:

a. Case A-the $1,125 was debited to Supplies Expense. What is the balance of Supplies at year-end?

The previous balance was Supplies $225

If the following was made:

Dr Supplies expense 1,125

    Cr Supplies 1,125

Then the ending balance of Supplies would be = -$900

b. Case B the $1,125 was debited to supplies. What is the balance of Supplies at year-end?

The previous balance was Supplies $225

If the following was made:

Dr Supplies 1,125

    Cr Supplies expense 1,125

Then the ending balance of Supplies would be = $1,350

Explanation:

During the current year, supplies were purchased for $1,125 cash. The inventory of supplies at the prior year-end was $225.

Adjusting entry to record supplies expense = $1,125 + $225 - $360

Dr Supplies expense 990

    Cr Supplies 990

Ending balance of supplies inventory = $360

Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $6 million. The machinery can be sold to the Romulans today for $5.1 million. Klingon’s current balance sheet shows net fixed assets of $3.4 million, current liabilities of $895,000, and net working capital of $235,000. If the current assets and current liabilities were liquidated today, the company would receive a total of $1.15 million cash. a. What is the book value of Klingon’s total assets today? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) b. What is the sum of the market value of NWC and the market value of fixed assets? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Answers

Answer:

a. What is the book value of Klingon’s total assets today?

total assets = net fixed assets + current assets

net fixed assets = $3,400,000current assets = net working capital + current liabilities = $235,000 + $895,000 = $1,130,000

total assets = $3,400,000 + $1,130,000 = $4,530,000

b. What is the sum of the market value of NWC and the market value of fixed assets?

market value of NWC = $1,150,000market value of fixed assets = $5,100,000

FMV of NWC + fixed assets = $1,150,000 + $5,100,000 = $6,250,000

Companies Heidee and Leaudy are virtually identical in that they are both profitable, and they have the same total assets (TA), Sales (S), return on assets (ROA), and profit margin (PM). However, Company Heidee has the higher debt ratio. Which of the following statements is CORRECT?

a. Company Heidee has a lower operating income (EBIT) than Company LD
b. Company Heidee has a lower total assets turnover than Company Leaudy.
c. Company Heidee has a lower equity multiplier than Company Leaudy.
d. Company Heidee has a higher fixed assets turnover than Company Leaudy.
e. Company Heidee has a higher ROE than Company Leaudy.

Answers

Answer:

e. Company Heidee has a higher ROE than Company Leaudy.

Explanation:

Return on equity measures how well the management of a business uses owner's equity to get returns. It is calculated by dividing net income by owner's equity.

That is

ROE= Net Income ÷ Owner's equity

Considering the accounting equation

Asset= Liability + Owner equity

Owner equity= Asset - Liability

From the equation when a company that take on more debt owner's equity will reduce.

The effect of reduction in owner's equity on Return on Equity is that it will increase the ratio, since owner's equity is the denominator.

In this scenario both companies have the same profit margin so if company Heidee has higher debt ratio it follows that it also has a higher ROE than Company Leaudy

Lisa loves her job as an executive recruiter for a large hospital located in Dallas, Texas. Part of Lisa's job requires her to gather industry information, collaborate with partners, compare competitors, and tap into the knowledge of prospective employees, partners, and customers. Which of the below would Lisa use to perform her job?
A. Interactivity metrics
B. Source code
C. Network effect
D. Collective intelligence

Answers

Answer:

D. Collective intelligence.

Explanation:

Collective intelligence is a concept under sociology, it refers to the process whereby groups of individuals or employees act or work collectively in ways that seem intelligent.

This simply means that, when intellectuals interact and sometimes compete with their colleagues, qualitative information are shared among the team and thus, they solve problems collectively as team members.

Hence, collective intelligence accords the team a greater chance to proffer solutions to problems, than they would have done if they were working independently and individually.

Since, Lisa's job requires her to gather industry information, collaborate with partners, compare competitors, and tap into the knowledge of prospective employees, partners, and customers.

Lisa should use collective intelligence to perform her job.

Boren Company reported the following information for the current year: Sales (625 units) $37,800, direct materials and direct labor $14,600, other variable costs $13,200, and fixed costs $6,000. "What is the company's break-even point in units?"

Answers

Answer:

Break-even point in units= 375 units

Explanation:

Giving the following information:

Sales (625 units) $37,800

direct materials and direct labor $14,600

other variable costs $13,200

fixed costs $6,000.

To calculate the break-even points in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Unitary selling price= 37,800/625= $60.48

Unitary varaible cost= (13,200 + 14,600)/625= $44.48

Break-even point in units= 6,000/ (60.48 - 44.48)

Break-even point in units= 375 units

James is dreading going to get his UF parking decal because he knows that the lines are usually three hours long. However, when he gets in line, he receives his parking decal in only thirty minutes. Which of the following is James probably experiencing?
A. Dissatisfaction
B. Satisfaction
C. Alternative
D. Evaluation
E. Bounded
F. Rationality
G. Delight

Answers

Answer:

Delight

Explanation:

James is dreading going to get his UF parking decal because he knows that the lines are usually three hours long. However, when he gets in line, he receives his parking decal in only thirty minutes. Which of the following is James probably experiencing?

Definitely, he will be experiencing a delight because he was actually expecting to meet a queue which will last for nothing less that 3 hours, but fortunately for him, he got what he went for within the space of time of 30minutes. So, he has been saved of extra 2hours 30minutes of stress due to the long queue. Hence, he will definitely be delighted.

A medium of exchange, by definition, is Group of answer choices the method used to buy and sell, be it barter or personal checks. paper bills and coins that are used to buy goods and services. precious metals that hold inherent value. what people trade for goods and services. the infrastructure used to transport and sell goods and services.

Answers

Answer:

what people trade for goods and services.

Explanation:

A medium of exchange is what people trade for goods and services. It could be coins, paper bills, coins, cowries, goods or personal check

I hope my answer helps you

Workers in the nation of Argenia prefer managers that forcefully tell employees what to do and how to do it. Conversely, employees in the U.S. prefer to participate in decision making in the workplace. This __________ difference between Argenian workers and U.S. workers represents a management challenge for firms trading in the global market.

Answers

Answer: sociocultural

Explanation:

The options for the question are:

a. geopolitical

b. economic

c. sociocultural

d. regulatory

Sociocultural is used to describe differences between groups of people which relate to the social class and the culture in which they live. The sociocultural environment of a business are the values and the customs that guide the practices of the business.

From the question, employees in Argenia prefer managers who forcefully tell employees what to do and how to do it while the employees in the United States like to participate in the decision making in the workplace. This shows that there are sociocultural differences between the two nations.

You run a school in Florida. Fixed monthly cost is $5,435.00 for rent and utilities, $6,171.00 is spent in salaries and $1,545.00 in insurance. Also every student adds up to $91.00 per month in stationary, food etc. You charge $734.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $11,679.00, salaries to $6,974.00 and insurance to $2,408.00 per month. Variable cost per student will increase up to $158.00 per month. However you can charge $1,054.00 per student. At what point will you be indifferent between your current mode of operation and the new option?

Answers

Answer:

31

Explanation:

The calculation of indifferent between your current mode of operation and the new option is shown below:-

Current Operation

Contribution Margin = Monthly Fees - Variable Cost

= $734.00 - $91.00

= $643.00

Total Fixed Cost = Rent and Utilities + Salaries + Insurance

= $5,435.00 + $6,171.00 + $1,545.00

= $13,151.00

New Operation

Contribution Margin = Monthly Fees - Variable Cost

= $1,054.00 - $158.00

= $896.00

Total Fixed Cost = Rent and Utilities + Salaries + Insurance

= $11,679.00 + $6,974.00 + $2,408.00

= $21,061.00

Here we will assume the indifferent number of students will be X

So,

Income under current option = Income under new option

$643.00 × X - $13,151.00 = $896.00 × X - $21,061.00

$253X = $7,910

X = $7,910 ÷ $253

= 31.26

or

= 31

, what measures will you put in place to ensure that your bank will not be caught up in the same situation as the collapsed banks?

Answers

Answer:

I will review the financial statements of the bank and the stock exchange valuation of the bank's stock.

Explanation:

The most important evidence of the organization's current position are its financial statements which shows that whether or not the organization will survive in the next 12 months. So to avoid any issues with the bank's bankruptcy we can review the financial statements of the bank to think about whether or not to keep the money deposited or not. Furthermore, the stock exchange pricing of the stock is also a key indicator of the financial position of the bank.

So I will review the financial statements of the bank and the stock exchange valuation of the bank's stock.

Due to a recession, expected inflation this year is only 3.75%. However, the inflation rate in Year 2 and thereafter is expected to be constant at some level above 3.75%. Assume that the expectations theory holds and the real risk-free rate (r*) is 3.5%. If the yield on 3-year Treasury bonds equals the 1-year yield plus 0.5%, what inflation rate is expected after Year 1

Answers

Answer:

5.25%

Explanation:

To calculate the inflation for the year 3, we will have to calculate the yield on 1 Year treasury bond.

The yield is calculated using the following formula:

Nominal Yield on Bond = Real risk free rate + Inflation for the year

Here

Inflation for Year One is 3.75%

Real Risk-Free Rate is 3.5%

Nominal yield on bond is Y for year 1

By putting values, we have:

Y = 3.5% + 3.75% = 7.25%

For 3 years treasury bond,

Nominal Yield on Treasury Bond  for 3 years = Yield on year 1 + Inflation

Y3 = 7.25% + 1.5% = 8.75 %

Now if we deduct the real risk free rate from the  3 year yield on the treasury bond, then the resultant rate would be the inflation rate for the year 3.

Inflation Rate for Year 3 = Y3 - Real Risk-Free Rate

Inflation Rate for Year 3 = 8.75% - 3.5%

Inflation Rate for Year 3 = 5.25%

Walkers World Company gathered the following information for 2019:
Total sales revenue (65% on credit) $432,000
Cost of goods sold 231,000
Sales returns and allowances (on credit) 44,000
Accounts receivable at end of 2019 ($30,000
increase during 2019) 100,000
Allowance for doubtful accounts:
Beginning of 2019 5,000
End of 2019 7,000
Merchandise inventory at end of 2019 ($10,000
decrease during 2019) 28,000
Assume 365 days in the year.
Calculate each of the following ratios.
A. Receivable turnover ratio.
B. Average age of receivables.
C. Inventory turnover ratio.
D. Average number of days' supply in inventory

Answers

Answer:

A. Receivable turnover ratio. = 4.57 times

B. Average age of receivables. 94.07 days

C. Inventory turnover ratio. 7 times

D. Average number of days' supply in inventory = 633 days

Explanation:

Net Sales $ 388,000

Sales revenue (65% on credit) $432,000

Less Sales returns and allowances (on credit) 44,000

Average Accounts Receivable = Accounts Rec (beg) Accounts Rec (end)/2

= 70,000+ 100,000/2= $85,000

A. Receivable turnover ratio.

Receivable turnover ratio= Net Sales / Average Accounts Receivable

= 388,000/ 85,000= 4.5647= 4.565= 4.57 times

A high turnover ratio is favorable because the accounts receivable are quickly collected.

B. Average age of receivables.

Average age of receivables= Accounts receivable *365/ Sales

= 100,000* 365/388,000= 365,000,00/388,000= 94.07 days

Accounts receivable will be collected in 94 days.

C. Inventory turnover ratio.

Inventory turnover ratio= Cost Of Goods Sold/ Average Inventory

= 231,000/38,000+ 28,000/2

= 231,000/33,000= 7 times

A company with a high turnover requires a smaller investment in inventory than one producing the same sales with a lower turn over.

D. Average number of days' supply in inventory

Average number of days' supply in inventory= Cost of Goods Sold/ 365

= 231,000 /365= 632.89

More Inventory will be needed in 633 days

Walkers World Company gathered the following information for 2019:

Total sales revenue (65% on credit) $432,000

Cost of goods sold 231,000

Sales returns and allowances (on credit) 44,000

Accounts receivable at end of 2019 ($30,000

increase during 2019) 100,000

Allowance for doubtful accounts:

Beginning of 2019 5,000

End of 2019 7,000

Merchandise inventory at end of 2019 ($10,000

decrease during 2019) 28,000

Assume 365 days in the year.

Calculate each of the following ratios.

A. Receivable turnover ratio.

B. Average age of receivables.

C. Inventory turnover ratio.

D. Average number of days' supply in inventory

The Blaine Development Corporation (BDC) is reconsidering the Lummi Resort Hotel project. It would be located on the picturesque banks of Birch Bay and have its own championship-level golf course. The cost to purchase the land would be $1 million, payable immediately. Construction costs would be approximately $2 million, due at the end of year 1. However, the construction costs are uncertain. These costs could be up to 20 percent higher or lower than the estimate of $2 million with an equal chance (uniform distribution). BDC’s best estimate for the annual operating profit to be generated in years 2, 3, 4, and 5 is $700,000. Due to the great uncertainty, the estimate of the standard deviation of the annual operating profit in each year also is $700,000. Assume that the yearly profits are statistically independent and follow the normal distribution. After year 5, BDC plans to sell the hotel. The selling price is likely to be somewhere between $4 and $8 million (assume a uniform distribution), and revenue will be received in year 5. Interest has been r = 5% (and you can ignore inflation), so you can simplify your net present value (NPV) calculation to be
NPV = summation of [ (pi(t)-c(t)) / ( (1-r)^t )] where t varies from 0 to 5
where pi(t) is operating profit and ct is cost of land and construction, both in period t. Simulate the NPV 1000 times. What is the mean and standard deviation of the NPV of the project?

Answers

Answer:

I can't help you sorry

Explanation:

I don't know what any of this means

The common stock of Sweet Treats is selling for $45.65 per share. The company is expected to have an annual dividend increase of 2.6 percent indefinitely and pay a dividend of $3.30 in one year. What is the total return on this stock

Answers

Answer:

9.83%

Explanation:

The computation of the total return on the stock is shown below:

As we know that

Share price = Next year dividend ÷ (Required rate of return -  growth rate)

$45.65 = $3.30 ÷ (Required rate of return - 2.6%)

Let us assume the required rate of return be X

So,

$45.65 × X - 1.1869 = $3.30

$45.65  × X = $3.30 + $1.1869

So, the X is 9.83%

Hence, the total return on the stock is 9.83%

At the annual meeting of the HR division at an insurance company, the vice president of HR noted that pay compression was a problematic phenomenon for certain jobs for which there was high demand but low supply. This problem was especially acute for jobs in actuarial science and legal services. The vice president of HR has hired you as a compensation consultant to help them formulate an action plan for dealing with this situation. What would you say is the best solution to this situation?

Answers

Answer:

Prepare high performing employees for promotions to jobs at higher salary levels.

Explanation:

Pay compression occurs when there is little difference in pay between employees regardless of experience and skill they possess. This leads to low motivation ong employees to perform above others since compensation is the same.

In the given instance this is the problem in actuarial science and legal jobs where there is high demand and low supply of talent.

To remedy this there needs to be a framework to compensate high performers.

Promoting them to jobs that have higher salary will be a great way to recognise and motivate high fliers

On January 1, 20X1, Draper Inc. signed a five-year noncancelable lease with Thornhill Company for custom-made equipment. The lease calls for five payments of $161,364.70 to be made at the beginning of each year. The leased asset has a fair value of $900,000 on January 1, 20X1. There is no bargain purchase option, and ownership of the leased asset reverts to Thornhill at the lease end. The leased asset has an expected useful life of six years, and Draper uses straight-line depreciation for financial reporting purposes. Its incremental borrowing rate is 8%. Draper uses a calendar year for financial reporting purposes.
Required:
1. Under U.S GAAP would Draper classify this lease as a capital lease or as an operating lease? Explain.
2. Under IFRS would Draper classify this lease as a capital lease or as an operating lease? Explain.

Answers

Answer:

1. Under U.S GAAP the lease will be capital lease

2. Under IFRS  it is leased under capital lease method.

Explanation:

1. In order to determine Under U.S GAAP if Draper classify this lease as a capital lease or as an operating lease we would to calculate the lease payable as follows:

lease payable=(Annual Payment*present value after interest and tax)/Fair value

lease payable=($161,364.70*800)/$900,000

lease payable=77.3%

Under U.S GAAP the lease will be capital lease because the lease term is for 5 years was more than 75% of economic life

2. Under IFRS the assets are mostly considered by its economic value, so it is leased under capital lease method.

Ratio proficiency McDougal​ Printing, Inc., had sales totaling $ 41 comma 000 comma 000 in fiscal year 2019. Some ratios for the company are listed below. Use this information to determine the dollar values of various income statement and balance sheet accounts as requested. Assume a​ 365-day year. Calculate values for the​ following: a. Gross profits b. Cost of goods sold c. Operating profits d. Operating expenses e. Earnings available for common stockholders f. Total assets g. Total common stock equity h. Accounts receivable

Answers

Answer:

a. Gross profits

= total sales x gross profit margin = $41,000,000 x 76​% = $31,160,000

b. Cost of goods sold

= total sales - gross profit = $41,000,000 - $31,160,000 = $9,840,000

c. Operating profits

= total sales x operating profit margin = $41,000,000 x 31​% = $12,710,000

d. Operating expenses

= total sales - operating profit = $41,000,000 - $12,710,000 = $28,290,000

e. Earnings available for common stockholders

= net profits = total sales x net profit margin = $41,000,000 x 9​% = $3,690,000

f. Total assets

asset turnover = revenue / total assets

total assets = revenue / 2.1 = $41,000,000 / 2.1 = $19,523,810

g. Total common stock equity

ROE = net income / equity

equity = net income / ROE = $3,690,000 / 23% = $16,043,478

h. Accounts receivable

average collection period = 365 / accounts receivable turnover

54.5 = 365 / accounts receivable turnover

accounts receivable turnover = 365 / 54.5 = 6.697248

accounts receivable turnover = sales / accounts receivable

accounts receivable = sales / accounts receivable turnover = $41,000,000 / 6.697248 = $6,121,918

Explanation:

McDougal​ Printing, Inc.

Year Ended December​ 31, 2019

Sales  $41,000,000

Gross profit margin 76​%  =

Operating profit margin  31​%

Net profit margin  9​%

Return on total assets  18.9​%

Return on common equity 23​%

Total asset turnover  2.1

Average collection period  54.5 days

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