Answer:
$3.06
Explanation:
The put call parity shows the relationship between the price of European put options and European call options of the same strike price and expiry date.
Given that:
Strike price (K) = $50
Price (C) = $6
rate (r) = 6% = 0.06
Stock price (SO) = $51
Time (T) = 1 year
Dividend (D) = $1
The period of dividend (t) = 6 months = 0.5 years
The put call parity (P) is given by the equation:
[tex]P+SO=C+Ke^{-rT}\\P=C+Ke^{-rT}-SO[/tex]
The dividend present value = [tex]De^{-rt}=1e^{-0.06*0.5}=\$0.97[/tex]
[tex]P=C+Ke^{-rT}-SO\\P=6+50e^{-0.06*1}-(51-0.97)\\P=6+47.088-50.03\\P=\$3.06[/tex]
Ready Ride is a trucking company. It provides local, short-haul, and long-haul services. It has developed the following three cost pools.
Activity Cost Pool Cost Drivers Estimated Overhead Estimated Use
of Cost Driver per Activity
Loading and unloading Number of pieces $85,785 90,300
Travel Miles driven 468,000 585,000
Logistics Hours 65,520 3,120
Compute the activity-based overhead rates for each pool.
Activity Cost Pool Activity-Based overhead Rate
Loading and unloading per piece
Travel per mile
Logistics per hour
Determine the overhead allocated to Job XZ3275 which has 150 pieces, requires 200 miles of driving, and 0.75 hours of logistics.
Answer:
Total allocation= $318.25
Explanation:
Giving the following information:
Loading and unloading: Number of pieces - $85,785 - 90,300
Travel: Miles driven - $468,000 - 585,000
Logistics: Hours - $65,520 - 3,120
Determine the overhead allocated to Job XZ3275 which has 150 pieces, requires 200 miles of driving, and 0.75 hours of logistics.
First, we need to calculate the estimated overhead rate for each activity:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Loading and unloading= 85,785/90,300= $0.95 per piece
Travel= 468,000/585,000= $0.8 per mile
Logistics= 65,520/3,120= $21 per hour
Finally, we can allocate overhead to Job XZ3275:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Loading and unloading= 0.95*150= $142.5
Travel= 0.8*200= $160
Logistics= 21*0.75= $15.75
Total allocation= $318.25
Mark Welsch deposits $7,200 in an account that earns interest at an annual rate of 4%, compounded quarterly. The $7,200 plus earned interest must remain in the account 3 years before it can be withdrawn. How much money will be in the account at the end of 3 years
Answer:
$8,113.14
Explanation:
The computation of the amount will be in the account at the end of 3 years i.e future value is shown below:
As we know that
Future value = Present value × (1 + interest rate)^number of years
= $7,200 × (1 + 0.04 ÷ 4)^ 3 × 4 quarters
= $7,200 × (1.01)^12
= $7,200 × 1.12682503
= $8,113.14
Since it is compounded quarterly so we divided the rate by 4 quarters and multiplied the number of years with the 4 quarters as there are 4 quarters in a year
You have just been offered your dream job after graduating from Jacksonville University. In response to your negotiations concerning your compensation package, the company has offered you a couple of different stock options in addition to the agreed upon salary.
Under the first option, you would receive stocks with a value of $2,000,000 at the end of each year. This option also includes an additional $4,000,000 bonus that you would receive for staying at the company for 3 years.
Under the second option, you would receive stocks with a value of $1,000,000 at the end of each year. This option also includes an additional $8,000,000 bonus that you would receive for staying at the company for 3 years.
Assume that these stocks grow at a rate of 11% compounded monthly. Moreover, assume that you will leave the company at the end of your fourth year to start your own firm. Which option will you choose. (The more money you have to start your own firm, the better.)
Your formal solutions should include ...
⦁ The overall goal and/or purpose.
⦁ The given information
⦁ A time-line for each option
⦁ A future value for each individual stock payment provided you by the company
⦁ The total future value of each option at the time you plan to leave the company
⦁ Your conclusion
Answer:
Goal: maximize return at the end of the fourth year.
Future value of each option:
First choise: $ 11,730,289.64
Second choise: $ 12,559,457.84
Conclusion:
It is better to pick the second option as yields a better return
Explanation:
We solve for the future value of the cashflow of each option:
First choise:
End of the first year:
[tex]Principal \: (1+ r)^{time} = Amount[/tex]
Principal 2,000,000.00
time 36.00 (form end of the first to end of the fourth)
rate 0.00917 (11% / 12 months as it compounds monthly)
[tex]2000000 \: (1+ 0.00916666666666667)^{36} = Amount[/tex]
Amount $2,777,757.26
End of the second year:
Principal 2,000,000.00
time 24.00
rate 0.00917
[tex]2000000 \: (1+ 0.00916666666666667)^{24} = Amount[/tex]
Amount $2,489,657.04
End of the third year:
Principal 4,000,000.00
time 12.00
rate 0.00917
[tex]4000000 \: (1+ 0.00916666666666667)^{12} = Amount[/tex]
Amount $4,462,875.34
End of the fourth year: $2,000,000
Total:
$2,777,757.26
$2,489,657.04
$4,462,875.34
$2,000,000
$ 11,730,289.64
Second choise:
First year
Principal 1,000,000.00
time 36.00
rate 0.00917
[tex]1000000 \: (1+ 0.00916666666666667)^{36} = Amount[/tex]
Amount 1,388,878.63
Second year:
Principal 1,000,000.00
time 24.00
rate 0.00917
[tex]1000000 \: (1+ 0.00916666666666667)^{24} = Amount[/tex]
Amount 1,244,828.52
Third Year
Principal 8,000,000.00
time 12.00
rate 0.00917
[tex]8000000 \: (1+ 0.00916666666666667)^{12} = Amount[/tex]
Amount 8,925,750.69
Fourth year: 1,000,000
Total
1,388,878.63
1,244,828.52
8,925,750.69
1,000,000.00
12,559,457.84
Suppose you are an analyst in the oil refinery industry and are responsible for estimating the equilibrium price and quantity of home heating oil. To do so, you must consider factors that can affect the supply of and demand for heating oil.
Determinants of the demand for heating oil include household income, the price of an oil furnace (a complement to heating oil) and the price of natural gas (a substitute for heating oil). Determinants of the supply of heating oil include the cost of crude oil and the cost of refining crude oil into home heating oil.
1. Suppose that all of the determinants of the supply and demand for heating oil are equal to their initital values. The equilibrium quantity in this market is ___ barrels of heating oil per day,
A. 60,000
B. 50,000
C. 70,000
D. 80,000
E. 40,000
2. and the equilibrium price is ____ per barrel.
A. $40
B. $70
C. $60
D. $50
E. $80
Answer:
1. 80,000
2. $40 per barrel
Explanation:
1. As we can see from the table provided The equilibrium quantity in this market is 80,000 barrels of heating oil per day, as quantity demanded match quantity supplied
2. As we can see from the table provided The equilibrium price is $40 per barrel as in this cost there is an intersection of quantity demanded and quantity supplied. In other words the equilibrium price and quantity could be find out when the quantity demanded equal to quantity supplied
Like a good economist, you calculated the opportunity cost of getting your college degree. Suppose that at your university, you will pay $10,000 each year for tuition, $2,500 each year for textbooks, and $10,000 per year for room and board. Before you left for college, your boss at your high-school job offered you a job paying $20,000 per year. Assume that if you decided not to go to college, your parents would not let you live at home. What is your opportunity cost for four years of college?
Answer:
The opportunity cost is $130,000 for the four year duration.
Explanation:
Here, it is clear that I will not go to the job, so going to university is the only option left. Now, the loss of the job income is also an opportunity cost with an amount $20,000 which will aggregated with the University specific costs.
University Specific cost for 4 Years = 4 * (Tuition Cost + Textbooks + Job Opportunity loss)
The room and board cost is common between college and the university so it must not be considered for the decision making.
By putting values, we have:
University Specific cost for 4 Years = 4 * ($10,000 + $2,500 + $20,000)
University Specific cost for 4 Years = $130,000 for the four years
The opportunity cost is $130,000 for the four year duration.
For better understanding of relevant costing (Opportunity cost analysis), consider the following question:
https://brainly.com/question/14423321
Cold Goose Metal Works owns 207,500 shares in the Fat Fox Smelting Corp.. If Fat Fox Smelters has 250,000 shares of common stock outstanding, can Cold Goose file a single income tax return that reports the incomes and expenses of both companies? No, because Cold Goose Metal Works’s ownership stake in Fat Fox Smelters is less than or equal to 49%, whereas 50% or more is required by the U.S. Tax Code. Yes, because Cold Goose Metal Works’s ownership stake in Fat Fox Smelters is greater than or equal to 60%, as required by the U.S. Tax Code. Yes, because Cold Goose Metal Works’s ownership stake in Fat Fox Smelters is greater than or equal to 80%, as required by the U.S. Tax Code.
Answer:
Cold Goose Metal Works and Fat Fox Smelting Corp.
Yes, because Cold Goose Metal Works’s ownership stake in Fat Fox Smelters is greater than or equal to 80%, as required by the U.S. Tax Code.
Explanation:
The total percentage of shares owned by Cold Goose Metal Works is 83% (207,500/250,000 x 100). This is more than 80% required.
The relevant section supporting the above is
"Section (2) 80-per cent voting and value test: The ownership of stock of any corporation meets the requirements of this paragraph if it—
(A)possesses at least 80 per cent of the total voting power of the stock of such corporation, and
(B)has a value equal to at least 80 per cent of the total value of the stock of such corporation."
What advice would you offer an Advisor, Laggard, or Mechanic in their quest to become an Orchestrator? Are there any other dimensions you would choose to classify CIOs by other than "Leadership Capability" and "Decision-Making Authority"? Why?
Answer: The answer is given below
Explanation:
Here is the complete question:
Preston, Leidner, and Chen in 2008 discuss four CIO leadership profiles: Orchestrator, Advisor, Laggard, and Mechanic. What advice would you offer an Advisor, Laggard, or Mechanic in their quest to become an orchestrator?
Are there any other dimensions you would choose to classify CIOs by other than "Leadership Capability" and "Decision-Making Authority"? Why?
IT Advisor:
This is a high leadership making authority. In every team, there is division of labor and as an Advisor, one may be called upon to lead the time or give opinions on certain issues. Therefore, IT Advisor should learn how to convince people to accept his or her opinion. Gaining more trust will help in increasing the decision making of the person and more people will believe in his judgement.
IT Laggard:
This is a low leadership capability and a high decision making authority. Also, they need to get the much needed trust from their team members and also within the organization. It should be noted that they are capable and professional people. In order to enhance the more practical aspects of the integration, they should discuss more on the specific implementation methods to their teams and also convince the members and gain their trust.
IT Mechanic:
This is a low leadership capability and low decision making authority. I believe the most vital step for IT mechanic is for the person to strengthen their professional ability. When the person has the required professional capacity, then the person can lead the team to achieve its goal and also make better decision. This will make the IT Mechanics respected, increase his expertise and also gain team members trust.
I believe that apart from "leadership capability" and the "decision-making authority," a company can also use professional capabilities to classify CIOs. The possession of professional ability by the CIOs, can help them in making better decisions which will be of immense benefit to the company.
The Crime Prevention Service for Business at Rutgers University School of Criminal Justice defines shrinkage as the difference between the inventory a business should have and what the:
Answer: ...business actually does have.
Explanation:
According to a study done in 2010, Retail Stores around $38 billion in Shrinkage making it quite a huge problem. Shrinkage according to the Crime Prevention Service for Business at Rutgers University School of Criminal Justice is the difference between the inventory a business should have and what it actually does have meaning that Shrinkage refers to the unexplained losses in inventory during the year.
Shrinkage can happen due to a couple of reasons such as employee theft, book keeping errors and shoplifting.
Jennifer Burroughs is thinking about starting a firm in the upscale women's fashion industry. To get a full appreciation of the competitive nature of the industry, and how she might position her products, Jennifer has spent considerable time looking at industry-related publications, Hoover's Online, and ABI-Inform, which is a database that provides access to articles covering a wide-variety of business and industry related issues. Jennifer is conducting ________ research.A) primaryB) secondaryC) actionD) temporaryE) purposeful
Answer:
Secondary
Explanation:
Secondary research is the process of summarising and collating existing research. Original or primary research involves collection of data and analysis to make a conclusion on the subject of study.
Secondary research uses information from primary research.
In this instance Jennifer looked at industry-related publications, Hoover's Online, and ABI-Inform, which is a database that provides access to articles covering a wide-variety of business and industry related issues.
The data she is using are from primary research sources.
Chen Company's account balances at December 31, 2017 for Accounts Receivable and the Allowance for Doubtful Accounts are $800,000 debit and $1,500 credit. Sales during 2017 were $2,750,000. It is estimated that 1% of sales will be uncollectible. The adjusting entry would include a credit to the allowance account for:___________.
A) $29,000.
B) $27,500.
C) $26,000.
D) $8,000.
Answer:
B) $27,500.
Explanation:
The computation of the amount credited to the allowance account is shown below:
= Sales during the 2017 year × estimated uncollectible percentage
= $2,750,000 × 1%
= $27,500
By multiplying the sales with the estimated uncollectible percentage we can get the amount credited to the allowance account and the same is to be considered
Hence, the correct option is B
A company has a net income of $190,000, a profit margin of 9.40 percent, and an accounts receivable balance of $106,351. Assuming 72 percent of sales are on credit, what is the company's days' sales in receivables?
Answer:
The company's days' sales in receivables is 22 days
Explanation:
In order to calculate the company's days' sales in receivables we would have to calculate first the total sales with the following formula:
Total Sales = Net Income / Profit Margin
= $190,000/9.4%=$2,021,276
Hence, Credit Sales = $2,021,276*0.85= $1,718,085
Accounts receivable turnover ratio = Credit sales / Accounts Receivable
= $1,718,085 /$106,351
= 16.15485
Therefore, Days sales in receivables = 365/16.15485= 22.59 days
The company's days' sales in receivables is 22 days
Twinte Cars, a California corporation, has internal corporate requirements that stipulate a three-year payroll document retention period. It enters into a contract with an international company that mandates a six-year payroll document retention requirement. How should Twinte Cars balance these requirements
Answer:
-The period for retention could be up to 8 years depending upon the circumstances.
-The benefits and records may be called to evidence
Explanation:
In this scenario Twinte cars needs to balance internal requirement of 3 year payroll document retention period and the contract if 6 year payroll retention with the international company. Usually foreign companies have a higher retention requirement.
A way out of this predicament will be to get a new retention period of 8 years. This will satisfy requirements of the international company.
Also Twinte cars can provide benefits and records from their internal 3 year payroll retention to the international company
Elasticity and Demand for Food
A. Consider the information on real-world price elasticities for ten countries. Why do you think the price elasticity of demand for food is higher in Tanzania than in the U.S.? What does this imply about food purchases in the U.S. and Tanzania?
B. The government wants to maximize its tax revenue. Revenue is equal to the amount of the tax times the quantity of goods sold (i.e., revenue Tax . Q). Which will provide more tax gasoline or a tax on restaurant meals? Why?
Answer:
Why do you think the price elasticity of demand for food is higher in Tanzania than in the U.S.?
The price elasticity of demand for food is higher in Tanzania than in the U.S. because Tanzania is a much poorer country than the U.S., and a rise in food prices leads immediately to a large drop in demand, since most people will simply not have enough income to meet demand.
What does this imply about food purchases in the U.S. and Tanzania?
This implies that people in Tanzania spend less money on food, but also spend a larger share of their income on it.
Which will provide more tax gasoline or a tax on restaurant meals? Why?
The tax on gasoline will provide more funds because gasoline is a good that is way more inelastic than restaurant meals.
If restaurant meals become more expensive because of the tax, people will simply stop eating-out, and prepare home meals instead.
Gasoline, on the other hand, is very inelastic, and even if the price goes up a lot because of a very high tax, car owners will still have to purchase it, raising government revenue.
g edna had an accident while competing in a rodeo. She sustained facial injuries that required cosmetic surgery. While having the surgery done to restore her appearance, she had additional surgery done to reshape her chin, which was not injured in the accident. The surgery to restore her appearance cost $ 9,000 and the surgery to reshape her chin cost $ 6,000. How much of Edna's surgical fees will qualify as a deductible medical expense (before application of the 10% -of-AGI floor)?
Answer:
$9000 is a deductible medical expense.
Explanation:
Cosmetics surgery is necessary and deductible if the reason it was done was to enhance her appearance arising from a form or kind of abnormality, personal injury or a disease that disfigures.The $9000 cost that was paid because of the surgery due to the accident is deductible because the surgery was necessary while the $6000 paid for the unnecessary cosmetic surgery to reshapen the chin is not a deductible medical expense.
13) Baxter & Baxter has total assets of $710,000. There are 45,000 shares of stock outstanding with a market value of $28 a share. The firm has a net profit margin of 7.1 percent and a total asset turnover of 1.29. What is the price-earnings ratio?
Answer:
19.38
Explanation:
Baxter & Baxter
Market value share/ Percentage of profit margin ×(Total assets ×Total asset turnover)/Outstanding shares
Where:
Market value shares=28
Percentage of profit margin =71%
Total assets =710,000
Total asset turnover=1.29
Outstanding shares =45,000
Hence:
Price-earnings ratio =
$28/[0.071 ×($710,000 ×1.29)]/45,000
=19.38
Accounts Receivable Analysis A company reports the following: Sales $1,182,600 Average accounts receivable (net) 43,800 Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. a. Accounts receivable turnover b. Number of days' sales in receivables days
Answer:
a. The account Receivable Turnover is 27 times
b. 13.52 days approximately
Explanation:
1. Account Receivable Turnover = Net sales / Average Account Receivables
Account Receivable Turnover = $1,182,600 / $43,800
Account Receivable Turnover = 27 times
The account Receivable Turnover is 27 times
2. Number of days' sales in receivables days = (Average Account Receivables * 365 days) / Net sales
=(43,800 * 365) / 1,182,600
=13.5185
=13.52 days approximately
Suppose that the world price of oil is $70 per barrel and that the United States can buy all the oil it wants at this price. Suppose also that the demand and supply schedules for oil in the United States are as follows:Price ($ Per Barrel) U.S. Quantity Demanded) U.S. Quantity Supplied68 16 470 15 672 14 874 13 1076 12 12a) Draw the supply and demand curve for the United Statesb) With free trade in oil, what price will Americans pay for their oil? What quantity will Americans buy? How much of this will be supplied by American producers? How much will be imported?
Answer:
The supply and demand curves for the United States are shown in the graphs attached.
Explanation:
Free trade in oil implies that a country in the international oil market can import as much oil as it wants and export as much oil as it wants.
The costs of demand and the revenues obtained in each case are given below:
QD1 cost = 68 × 70 = $4,760
QS1 revenue = 16 × 70 = $1,120
QD2 cost = 470 × 70 = $32,900
QS2 revenue = 15 × 70 = $1,050
QD3 cost = 672 × 70 = $47,040
QS3 revenue = 14 × 70 = $980
QD4 cost = 874 × 70 = $61,180
QS4 revenue = 13 × 70 = $910
QD5 cost = 1076 × 70 = $75,320
QS5 revenue = 12 × 70 = $840
Find the graph attachments.
Assuming no employees are subject to ceilings for their earnings, Harris Company has the following information for the pay period of January 15 - 31.
Gross payroll $19,676
Federal income tax withheld $3,438
Social security rate 6%
Federal unemployment tax rate 0.8%
Medicare rate 1.5%
State unemployment tax rate 5.4%
Salaries Payable would be recorded in the amount of
a) $15,018.09
b) $13,542.39
c) $14,762.30
d) $19,676.00
Answer:
The correct answer is B. Salaries Payable would be recorded in the amount of 13,542.39.
Explanation:
Given that the company's gross payroll is $19,676, and that a discount of $3,438 must be applied by the Federal Income Tax, a 6% social security rate, a 0.8% federal unemployment rate, a 1.5% rate Medicare and 5.4% state unemployment rate, the following gross discounts must be made to gross payroll to determine wages to be paid after taxes:
3,438 (Federal Income Tax)
19,676 x 0.06 = 1,180.56 (social security rate)
19,676 x 0.008 = 157.408 (federal unemployment rate)
19,676 x 0.015 = 295.14 (Medicare rate)
19,676 x 0.054 = 1,062.5 (state unemployment rate)
Therefore, those discounts should be subtracted from the gross payroll in order to get the Salaries Payable:
19,676 - 3,438 - 1,180.56 - 157.4 - 295.14 - 1,062.5 = 13,542.39.
Which of the following are a type of overhead allocation method?
a. division overhead rate method.
b. activity-based costing method
c. departmental overhead rate method
d. plantwide overhead rate method
Answer:
b. activity-based costing method
c. departmental overhead rate method
d. plantwide overhead rate method
Explanation:
B. Activity based costing method allocates different cost pools or drivers to each overhead based on its level of activity or usage etc. For example if we want to find the cost of telephone calls we would find the number of total calls not number of days. Similarly if we want to calculate the wages we will find the number of hours not days etc.
C. Department overhead rate method allocates different rates to each department. For example the rates of the lubricating department may be different from the finishing department or polishing department etc.
D. Platwide Overhead rate method allocates a single rate to all the products. It is based on direct labor hours . And number of hours are used to allocate it to different products. For example the rate may be $1.5 per hour and it can be calculated for different products as product A requires 6 hours and product B requires 9 hours so the rate for Product A would be $ 9.0 and $ 12 for product B.
A.division overhead rate method. Theres no such overhead rate as division overhead rate method.
The plantwide overhead rate method. Thus the option D is correct.
What is the overhead allocations ?The overhead allocation refers to the rate of the cost allocations . The core components of the cost allocations is track the organization products and services. The business can identify the services that helps in managing the company's financial resources. It helps to allocate the cost to the business units.
Find out more information about the allocation method.
brainly.com/question/17112052.
Mark is creating Nu2U, a Web site through which he will enter into contracts over the Internet. In his standard online contract, he includes a provision which states "Any disputes under this contract will be resolved under the laws of the State of Texas." This is an example of a
Answer: Choice of Law Clause
Explanation:
The Choice of Law Clause allows parties in a contract to pick a territory's laws as the laws that the contract between them will be applicable to.
This way uncertainty can be avoided when any of the parties seeks legal redress for any perceived breach of contract.
It is worthy of note that parties do not even need to be from the Territory whose laws have been chosen and this is why some parties look for Territories who have laws that will be favourable to them. This is why most big Corporations pick Delaware law because their laws are perceived to be pro big business.
A Deloitte employment survey asked a sample of human resource executives how their company planned to change its workforce over the next months. A categorical response variable showed three options: The company plans to hire and add to the number of employees, the company plans no change in the number of employees, or the company plans to lay off and reduce the number of employees. Another categorical variable indicated if the company was private or public. Sample data for companies are summarized as follows. Company Employment Plan Private Public Add Employees 39 32 No Change 21 36 Lay Off Employees 12 44 a. Conduct a test of independence to determine if the employment plan for the next months is independent of the type of company. At a level of significance. Compute the value of the test statistic (to 2 decimals).
The missing figures in the question is shown in bold format.
Also the table is better constructed for clearer understanding when answering the question.
A Deloitte employment survey asked a sample of human resource executives how their company planned to change its workforce over the next 12 months. A categorical response variable showed three options: The company plans to hire and add to the number of employees, the company plans no change in the number of employees, or the company plans to lay off and reduce the number of employees. Another categorical variable indicated if the company was private or public. Sample data for 180 companies are summarized as follows.
Company
Employment Plan Private Public
Add Employees 39 32
No Change 21 36
Lay Off Employees 12 44
a. Conduct a test of independence to determine if the employment plan for the next 12 months is independent of the type of company. At a level of 0.05 significance. Compute the value of the test statistic (to 2 decimals).
Answer:
Explanation:
From the table in the question; we can see the changes in employees adding, shedding, or not changing their staffing.
Company
Plan Private Public
Add 39 32
Number Change 21 36
Lay Off 12 44
The hypothesis are:
[tex]\mathbf{ H_o : Column \ independent \ of \ row}\\ \\ \mathbf{ H_a : Column \ is \ dependent \ of \ row}[/tex]
Using the following relation of variables given to determine expected frequencies ; we have :
[tex]\mathbf{e_f = \dfrac{(row _i)(column_j)}{Total \ sample}}[/tex]
From the above table ; the first row show the total entries of 72
The first column shows the total of 72
[tex]\mathbf{e_f = \dfrac{(39+32)(72)}{180}} \\ \\ \mathbf{e_f = 28.80}}[/tex]
The expected value for the first row, first column is 28.80
Repeating the same process for others;
For the first row ; second column we have :
[tex]\mathbf{e_f = \dfrac{(39+32)(112)}{180}} \\ \\ \mathbf{e_f = 44.80}}[/tex]
For the second row ; first column we have :
[tex]\mathbf{e_f = \dfrac{(21+36)(72)}{180}} \\ \\ \mathbf{e_f = 22.80}}[/tex]
For the second row ; second column we have :
[tex]\mathbf{e_f = \dfrac{(21+36)(112)}{180}} \\ \\ \mathbf{e_f = 35.47}}[/tex]
For the third row ; first column we have :
[tex]\mathbf{e_f = \dfrac{(12+44)(72)}{180}} \\ \\ \mathbf{e_f = 22.40}}[/tex]
For the third row ; second column we have :
[tex]\mathbf{e_f = \dfrac{(12+44)(112)}{180}} \\ \\ \mathbf{e_f = 34.84}}[/tex]
Company
Plan Private Public Total
Add 28.80 44.80 73.60
Number Change 22.80 35.47 58.27
Lay Off 22.40 34.84 57.24
Converting the table to chi- squared using the relation.
[tex]\mathbf{x^2 = \sum_i ( \dfrac{f_y-e_f}{e_f})^2}[/tex]
where;
[tex]f_y[/tex] = observed frequency from the original table
From the original above table ;
for the first row (1)
the observed frequency is = 39
the expected frequency is = 28.80
[tex]\mathbf{x^2 = \sum_i ( \dfrac{39-28.80}{28.80})^2} \\ \\ \mathbf{x^2 =3.6125}[/tex]
for the first row (2)
the observed frequency is = 32
the expected frequency is = 44.80
[tex]\mathbf{x^2 = \sum_i ( \dfrac{32-44.80}{44.80})^2} \\ \\ \mathbf{x^2 =3.6571}[/tex]
for the second row (1)
the observed frequency is = 21
the expected frequency is = 22.80
[tex]\mathbf{x^2 = \sum_i ( \dfrac{21-22.80}{22.80})^2} \\ \\ \mathbf{x^2 =0.1421}[/tex]
for the second row (2)
the observed frequency is = 36
the expected frequency is = 35.47
[tex]\mathbf{x^2 = \sum_i ( \dfrac{36-35.47}{35.47})^2} \\ \\ \mathbf{x^2 =0.0079}[/tex]
for the third row (1)
the observed frequency is = 12
the expected frequency is = 22.40
[tex]\mathbf{x^2 = \sum_i ( \dfrac{12-22.40}{22.40})^2} \\ \\ \mathbf{x^2 =4.8286}[/tex]
for the third row (2)
the observed frequency is = 44
the expected frequency is = 34.84
[tex]\mathbf{x^2 = \sum_i ( \dfrac{44-34.84}{34.84})^2} \\ \\ \mathbf{x^2 =2.4083}[/tex]
Company
Plan Private Public Total
Add 3.6125 3.6571 7.2696
Number Change 0.1421 0.0079 0.15
Lay Off 4.8286 2.4083 7.2369
Total [tex]x^2 =[/tex] 14.657
Hence, the total chi-square = 14.657;
To find the value for p; we need to determine the degree of freedom
df = (2-1)(3-1)
that result to a degree of freedom of 2
From the chi square chart at the chi-square is 14.657 and degree of freedom is 2 ; the p value is between 0.1 and 0.005. Since this makes p-value less than 0.05.
We rejected [tex]\mathbf{ H_o}[/tex]
Thus; the variables are dependent. We can conclude that the employment plan and the company are significantly related.
Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company’s products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,100 helmets, using 2,077 kilograms of plastic. The plastic cost the company $13,708. According to the standard cost card, each helmet should require 0.62 kilograms of plastic, at a cost of $7.00 per kilogram.
Required:
1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,100 helmets?
2. What is the standard materials cost allowed (SQ × SP) to make 3,100 helmets?
3. What is the materials spending variance?
4. What is the materials price variance and the materials quantity variance? (For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.)
Answer:
1. 1,922
2. $13,454
3. $254 Unfavorable
4. 831 Favorable
$1,085 Unfavorable
Explanation:
1. The computation of standard quantity of kilograms of plastic is shown below:-
Standard quantity of kilograms allowed = Helmets manufactured × Required kilograms of plastic
= 3,100 × 0.62
= 1,922
2. The computation of standard materials cost allowed is shown below:-
Standard cost allowed for actual output = Standard quantity of kilograms allowed × Cost per kilogram
= 1,922 × $7
= $13,454
3. The computation of materials spending variance is shown below:-
Materials spending variance = Plastic cost - Standard cost allowed for actual output
= $13,708 - $13,454
= $254 Unfavorable
4. The computation of materials price variance and the materials quantity variance is shown below:-
Materials price variance = Plastic cost - (Plastic in kilograms × Cost per kilograms)
= $13,708 - (2,077 × $7)
= 831 Favorable
Materials quantity variance = Cost per kilograms × (Plastic in kilograms - Standard quantity of kilograms allowed)
= $7 × (2,077 - 1,922)
= $1,085 Unfavorable
So, we have applied the above formulas.
Support agents at Universal Containers research solutions to customer issues by asking various subject matter experts (SMEs) at the company.Which three features will allow Support Agents to quickly document the details of these meetings? (Choose three.)
A. Case Feed
B. Workflow Email Alerts
C. Case Group
D. Case Comments
E. Events
Answer:
A,C,D
Explanation:
Remember, we are told the issue concerns "support agents" working for a company–Universal Containers. Thus, they will be using Salesforce inorder to document their findings.
i. Case feed is one useful feature that quickly allows the support agents to edit, store and change the status of cases where necessary.
Ii. Case group is another useful feature to group cases that the support agents consider as been interrelated.
iii. Case comments feature allows them to read through case by case comment from the participants in the research, allowing proper insight into minds of the customers.
In 2009, because U.S. imports were $2,535 billion while exports were $2,116 billion:
A. imports exceeded exports by a sizeable $419 billion.
B. there was a huge influx of foreign capital into the U.S. economy.
C. government policy caused a lessening of foreign aid.
D. exports exceeded imports by a sizeable $419 billion.
Answer:
A. imports exceeded exports by a sizable $419 billion
Explanation:
Obviously imports had a greater value than exports. The difference in value is ...
$2535 -2116 = $419 . . . billion
This observation matches choice A.
New Keynesian theorists argue that a. price and wage adjustments in response to policy changes often overcompensate and cause further price disruptions. b. unions and big business have considerable power and often choose not to change wages and prices so as to deliberately offset policy changes enacted by the government. c. the Fed and the Congress rarely do what they say they will do, so one should never listen to what they say. d. new classical rational expectations theories about how expectations are formed are completely wrong. e. prices and wages may not be free to adjust in response to policy changes.\
Answer:
The correct answer is (D)
Explanation:
New classical "rational expectations" theories about how expectations are formed, are completely wrong. That is, prices and wages may not be free to adjust in response to policy changes.
This is the basis of New Keynesian economics, which emerged from the Classical Keynesian economics.
New Keynesian theorists argue that wages and prices are sticky (hardly adjust) in the face of short term fluctuations in the economy. This means or explains that short term federal monetary policies do not have such a great influence on wage level and price level in the macroeconomy.
Mostert Music Company had the following transaction inMarch:a. Sold instruments to customers for $10,000; received$ 6,000 in cash and the rest on account.The cost of theinstruments was $7,000.
b.Purchased $4,000 of new instruments inventory; paid$1,000 in cash and owed the rest on account.
c. Paid $600 in wages for the month.
d. Received a $200 bill for utilities that will be paidin April.
e. Received $1,000 from customers as deposits on ordersof new instruments to be sold to the customers in April.Complete the following statement:Cash BasisIncomeStatementAccrualBasis Income StatementRevenues:Revenues:CashSales___________Salesto customers_________Customerdeposits___________Expenses:Expenses:Inventorypurchases__________Costof sales__________Wagespaid__________Wagesexpense__________Utilitiesexpense__________CashIncome___________(dbl underline)Netincome_________(dbl underline)
Answer: The answer is given below
Explanation:
It should be noted that for the cash basis income statement, the revenue were cash sales of $6000 and customer deposit of $1000 making a total of $7000. The expenses were the inventory purchased of $1000 and the wages paid of $600 making $1600. Cash income was now:
= $7,000 - $1600
= $5400
For the accrual income statement, the revenue was $10000 and expenses were $7800. The cash Income was now: $10,000 - $7800 = $2,200
Check the attachment for further clarification.
Under a partnership agreement, Sherry is to receive 25% of the partnership income, but not less than $10,000. The partnership has net income of $30,000 for Year 1 before any allocation. Calculate Sherry’s guaranteed payment from the partnership for Year 1.
Answer:
$2,500
Explanation:
since Sherry will receive at least $10,000 or 25% of the partnership's net income, then the guaranteed payment = $10,000 - ($30,000 x 25%) = $10,000 - $7,500 = $2,500
When partnerships include guaranteed minimum payments, he/she will receive that amount even if the partnership's net income is not high enough. If the partnership's net income would have been $40,000 or more, then there would be no guaranteed payment (= $40,000 x 25% = $10,000).
Portions of the financial statements for Peach Computer are provided below.PEACH COMPUTERIncome StatementFor the year ended December 31, 2021Net sales $ 1,875,000 Expenses: Cost of goods sold $ 1,080,000 Operating expenses 590,000 Depreciation expense 53,000 Income tax expense 43,000 Total expens 1,766,000 Net income $ 109,000 PEACH COMPUTERSelected Balance Sheet DataDecember 312021 2020 Increase (I)orDecrease (D)Cash $ 105,000 $ 86,500 $ 18,500 (I)Accounts receivable 45,300 50,500 5,200 (D)Inventory 78,000 56,500 21,500 (I)Prepaid rent 3,300 5,600 2,300 (D)Accounts payable 48,000 38,500 9,500 (I)Income tax payable 5,300 11,500 6,200 (D)Required:Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method. (List cash outflows and any decrease in cash as negative amounts.)
Answer:
Cash flow from Operating Activities
Cash Receipts from Customers $1,880,200
Cash Paid to Suppliers and Employees ($1,679,700)
Cash Generated from Operations $ 200,500
Income taxes paid ($49,200)
Cash flow from Operating Activities $ 151,300
Explanation:
Cash Receipts from Customers Calculation
Net sales $ 1,875,000
Add Decrease in Accounts receivable $ 5,200
Cash Receipts from Customers $1,880,200
Cash Paid to Suppliers and Employees
Cost of goods sold $ 1,080,000
Add Operating Expenses
Operating expenses $ 590,000
$1,670,000
Increase in Inventory $ 21,500
Decrease in Prepaid rent ($ 2,300)
Increase in Accounts payable ($ 9,500)
Cash Paid to Suppliers and Employees $1,679,700
Income taxes paid Calculation
Open an Income taxes Payable T - Account as follows :
Debits :
Closing Balance $ 5,300
Cash (Balancing figure) $49,200
Totals $54,500
Credit :
Opening Balance $ 11,500
Income Statement $43,000
Totals $54,500
The following items are taken from the financial statements of the Freight Service for the year ending December 31, 2016:
Accounts payable $ 19,000
Accounts receivable 13,000
Accumulated depreciation – equipment 26,000
Advertising expense 21,200
Cash 15,000
Owner’s capital (1/1/16) 104,000
Owner’s drawings 11,000
Depreciation expense 12,000
Insurance expense 3,800
Note payable, due 6/30/17 72,000
Prepaid insurance (12-month policy) 7,200
Rent expense 16,000
Salaries and wages expense 32,000
Service revenue 135,000
Supplies 5,000
Supplies expense 6,000
Equipment 210,000
What is the company’s net income for the year ending December 31, 2016?
Answer:
Freight Service
Income Statement for the year ending December 31, 2016:
Service Service $135,000
Costs:
Advertising expense 21,200
Depreciation expense 12,000
Insurance expense 3,800
Rent expense 16,000
Salaries & Wages exp 32,000
Supplies expense 6,000
Total Expenses $91,000
Net Income $44,000
Explanation:
In calculating the net income for the year, only revenue and expenses (income statement) items are taken into account. They are also called temporary or period accounts which are closed to the income statement for the period, because they are not permanent accounts. Permanent accounts are taken to the balance sheet and carried over to the next accounting period.
Assume that you manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 27%. The T-bill rate is 7%.
You estimate that a passive portfolio invested to mimic the S&P 500 stock index yields an expected rate of return of 13% with a standard deviation of 25%.
What is the slope of the CML? (Round your answer to 2 decimal places.)
Answer:
The slope of the CML = (13% - 7%)/25% = 0.24
Explanation:
Given that:
expected rate of return of 17%
standard deviation of 27%.
The T-bill rate is 7%.
You estimate that a passive portfolio invested to mimic the S&P 500 stock index yields an expected rate of return of 13% with a standard deviation of 25%.
The slope of the CML is
Slope of the CML = (Expected return of Market - Risk free return)/Standard deviation of market
The slope of the CML = (13% - 7%)/25% = 0.24
= (0.13 - 0.07) /0.25
= 0.24
