Answer:
A. Assuming no changes to sales price or costs:
Break-even point (in units) = Total Fixed Cost / Contribution Margin per unit
Break-even point (in units) = $200,000 / $48 = 4,167 units
Break-even point (in dollars) = Break-even point (in units) x Sales price per unit
Break-even point (in dollars) = 4,167 x $120 = $500,040
Margin of safety (in dollars) = Total Sales - Break-even point (in dollars)
Margin of safety (in dollars) = $600,000 - $500,040 = $99,960
B. Assuming changes to sales price and volume as described above:
New selling price per unit = $120 - (10% of $120) = $108
New sales volume = 5000 x 1.25 = 6250 units
New total sales = New sales volume x New selling price per unit = 6250 x $108 = $675,000
New contribution margin = New total sales - Variable costs = $675,000 - ($72 x 6250) = $270,000
New net income = New contribution margin - Total Fixed costs = $270,000 - $200,000 = $70,000
Break-even point (in units) = Total Fixed Cost / Contribution Margin per unit
Break-even point (in units) = $200,000 / $48 = 4,167 units
Margin of safety (in dollars) = Total Sales - Break-even point (in dollars)
Margin of safety (in dollars) = $675,000 - ($200,000 / 0.6) - $500,040 = $174,960
C. Assuming change (B) approved, Calculate the number of units that the company must sell to earn operating income of $80,000:
Required contribution margin = Total Fixed costs + Operating income
Required contribution margin = $200,000 + $80,000 = $280,000
Required sales revenue = Required contribution margin / Contribution margin ratio
Contribution margin ratio = Contribution margin per unit / Sales price per unit = $48 / $108 = 0.4444
Required sales revenue = $280,000 / 0.4444 = $630,063
Required sales volume = Required sales revenue / Selling price per unit = $630,063 / $108 = 5,834 units
D. Based on the analysis, reducing the selling price by 10% and increasing unit sales by 25% results in an increase in net income from $40,000 to $70,000. The break-even point in units remains the same at 4,167 units, but the break-even point in dollars increases from $500,040 to $525,042. The margin of safety increases from $99,960 to $174,960. To earn operating income of $80,000, the company needs to sell 5,834 units, which is less than the new projected sales volume of 6,250 units. Overall, the proposed changes seem to be beneficial for the company.
John, a car repair shop owner, is developing the warranty and repair policies for his business. What area of the marketing strategy is he addressing?
John, a car repair shop owner, is developing the warranty and repair policies for his business, he is addressing the post-purchase customer service area of the marketing strategy.
Marketing strategy is the approach and methods that a company employs to achieve its marketing goals. It entails market analysis, product positioning, pricing, and promotion, as well as the company's policies and practices for dealing with customers throughout the buying process. Marketing strategy areas:
Product: Ensuring that the product is of high quality and that it meets customers' requirements.Promotion: Promotion of the product through the use of advertising, public relations, sales promotions, and personal selling.Place: Making the product available to customers through distribution channels.Price: Determining the product's price to ensure that it is reasonable and attractive to customers.Policy: Developing policies and practices for dealing with customers throughout the buying process.A warranty is an agreement between a consumer and a manufacturer or vendor. It specifies that the manufacturer will fix or replace any parts that malfunction within a particular time frame, usually one or two years after the purchase date. There are a number of repair choices that a customer may make, and the type of repair they choose will depend on a variety of factors, including the cost of the repair, the time it will take to complete the repair, and the type of repair that is required.
When John, a car repair shop owner, is developing the warranty and repair policies for his business, he is addressing the post-purchase customer service area of the marketing strategy.
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which of the following matters is covered in a typical comfort letter? negative assurance concerning whether the entity's internal control procedures operated as designed during the period being audited,
The following matters is covered in a typical comfort letter covers negative assurance concerning whether the entity's internal control procedures operated as designed during the period being audited.
A comfort letter is a document issued by an independent accounting firm to verify the accuracy of figures, assertions, or claims made by a company or individual. Comfort letters are often used by underwriters and banks during initial public offerings (IPOs) or other financial transactions. Comfort letters are issued based on the results of a review conducted by the accounting firm.
The purpose of a comfort letter is to provide assurance to third parties that the financial information provided by the issuer is accurate and that any changes since the date of the issuer's latest financial statements have been appropriately reflected. Comfort letters include negative assurance regarding the issuer's internal controls, among other things. Comfort letters are not audited, and they do not provide a comprehensive opinion on the issuer's financial statements.
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when a business sells goods to a customer, and the customer promises to pay later, this is referred to as
When a business sells goods to a customer, and the customer promises to pay later, this is referred to as: credit sales.
Credit sales are common in most businesses today. When a seller provides goods to a buyer on credit, it is known as credit sales. The seller expects payment from the buyer at a later date, typically within 30, 60, or 90 days or sometimes more.
The amount of the credit sale is usually the total price of the products or services sold, plus any applicable taxes or fees. The benefits of credit sales are many, such as increasing sales volume, attracting new consumers, and keeping existing ones satisfied.
It also improves the company's liquidity and cash flow, as well as ensuring that the buyer has a steady supply of goods when they require them. Credit sales, on the other hand, involve risks, such as the risk of non-payment or late payment, which can negatively impact the seller's cash flow and profitability.
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In recent years, commercial banks have been allowed to
A) invest in real estate.
B) enter certain insurance markets.
C) underwrite stocks.
D) do all of the above.
E) do only A and B of the above.
In recent years, commercial banks have been allowed to invest in real estate, enter certain insurance markets, and underwrite stocks. The correct answer is D.
What are Commercial banks?
A commercial bank is a financial institution that accepts deposits from the general public and organizations, making a profit from the difference between interest rates charged on loans, payment services, and interest paid on deposits. Some of the services provided by commercial banks include checking and savings accounts, loans, credit, and debit cards, insurance policies, investments, and financial planning services.
Commercial banks are for-profit businesses that take deposits from the general public and lend money to individuals like households, business owners, and entrepreneurs.
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Question 37 Which statement illustrates the concept of external cost? Margaret purchases all her food and clothing in the big city outside her residence. A small business owner frequently buys raw materials by using her bank's line of credit. Raymond cannot open his windows at times, because he lives downwind from a mushroom farm Felicia, an economics major, asks the most insightful questions in class.
The correct option is "Raymond cannot open his windows at times, because he lives downwind from a mushroom farm".
External cost is an economic term used to describe costs that are incurred by a third party due to the actions of another person, which in this case is the mushroom farm. As a result, Raymond experiences negative externalities, such as the inability to open his windows at times due to the unpleasant smell coming from the farm.
External cost can be defined as a negative effect on a third party that is not directly involved in the exchange between the buyer and the seller. It occurs when the production or consumption of a good or service causes an uncompensated cost to a third party who was not a party to the transaction.
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External cost is an economic term used to describe costs that are incurred by a third party due to the actions of another person, which in this case is the mushroom farm. As a result, Raymond experiences negative externalities, such as the inability to open his windows at times due to the unpleasant smell coming from the farm.
External cost can be defined as a negative effect on a third party that is not directly involved in the exchange between the buyer and the seller. It occurs when the production or consumption of a good or service causes an uncompensated cost to a third party who was not a party to the transaction.
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The following items represent expenditures (or receipts) related to the construction of a new home office for Secrest Investment Company. Cost of land site, which included an abandoned railroad spur $205,000 Legal fees, including title search, relating to land purchase 8,300 Cost of surveying land to confirm boundaries 1,100 Cost of removing railroad tracks 6,500 Payment of delinquent property taxes assumed by the purchaser 6,000 Proceeds from sale of timber from walnut trees cut down to prepare site for construction (23,000) Proceeds from sale of salvaged railroad track (3,500) Grading to prepare land site for construction 8,000 Cost of basement excavation (contracted separately) 3,700 Architect's fees on new building 128,000 Payment to building contractor-original contract price 3,400,000 Cost of changes during construction to make building more energy efficient 95,000 Cost of replacing windows broken by vandals 2,400 Cost of paving driveway and parking lot 17,000 Out-of-court settlement for mud slide onto adjacent property 10,000 Special assessment for paving city sidewalks (paid to city) 26,000 Cost of brick and wrought iron fence installed across front of property 20,500 Required From the given data, compute the proper balances for the Land, Building, and Land Improvements accounts of Secrest Investment Company. Land $ Answer Building $ Answer Land Improvements $ Answer
In total, the Land, Building, and Land Improvements accounts would equal $3,722,400.
The proper balances for the Land, Building, and Land Improvements accounts of Secrest Investment Company would be:
Land: $205,000Building: $3,522,000Land Improvements: $94,400The Land account includes the cost of the land site and the associated fees ($205,000).
The Building account includes the original contract price and the cost of changes made during construction ($3,400,000 + $95,000).
The Land Improvements account includes all of the expenses related to preparing the land for construction, such as surveying, removing railroad tracks, grading, basement excavation, and special assessments ($8,300 + $1,100 + $6,500 + $8,000 + $3,700 + $26,000 + $20,500). Additionally, it includes the proceeds from the sale of timber and salvaged railroad track, and the out-of-court settlement for the mud slide onto adjacent property ($23,000 + $3,500 - $10,000).
In total, the Land, Building, and Land Improvements accounts would equal $3,722,400.
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the labor force is the sum of the ______ and ______.
The labor force is the sum of the employed and the unemployed.
Employed individuals are those who are currently working for pay or profit, either as an employee or self-employed. This includes those who are on temporary leave, such as vacation or illness, but are expected to return to work.
Unemployed individuals, on the other hand, are those who are currently not working but are actively seeking employment and are available for work. They may have recently lost their job or are new to the job market.
The labor force, therefore, consists of both those who are currently working and those who are available and actively seeking employment. It is an important measure of the economy's capacity to produce goods and services and is used to calculate key labor market statistics such as the unemployment rate and labor force participation rate.
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how do marketers use data to develop product strategies?
Marketers use data from various sources to identify consumer needs, market trends, and gaps, informing product design, pricing, and promotion strategies for successful product launches and customer satisfaction.
By examining several information sources, such as consumer behavior and market trends, marketers use data to create effective product plans. Data enables marketers to find market possibilities and gaps and create solutions that satisfy customer preferences and demands. To understand consumer behavior and spot new market trends, they analyze sales data, social media analytics, customer feedback, and market research surveys. Product design, price, and advertising methods are influenced by this information. For instance, marketers may create and advertise items that fit this trend if research shows that customers are becoming more interested in eco-friendly goods. This can entail making energy-efficient equipment or utilizing biodegradable packaging. by using data to inform the creation of product plans.
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inflation-indexed treasury bonds are intended for investors who wish to ensure that the returns on their investments keep up with the increase in prices over time. a. true b. false
Answer:
The correct option is A) True. Inflation-indexed treasury bonds are intended for investors who wish to ensure that the returns on their investments keep up with the increase in prices over time.
Explanation:
What are inflation-indexed treasury bonds?
Inflation-indexed treasury bonds (I-bonds) are a type of treasury bond (T-bond) that is linked to the rate of inflation. The United States Treasury Department issued I-bonds in 1998. Treasury bonds are bonds sold by the United States government, and they are regarded as one of the safest investments. These bonds are considered to be an investment vehicles because they have a fixed interest rate.The benefits of investing in inflation-indexed treasury bonds are as follows: When you invest in I-bonds, your investment is shielded from inflation, which ensures that the value of your investment increases over time.You will receive interest on your investment in addition to the money you invested. I-bonds have a set maturity date, which ensures that you will receive the entire amount you invested plus the interest earned at the time of maturity. In conclusion, inflation-indexed treasury bonds are intended for investors who wish to ensure that the returns on their investments keep up with the increase in prices over time. Therefore, the statement "True" is correct.
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The correct option is A) True. Inflation-indexed treasury bonds are intended for investors who wish to ensure that the returns on their investments keep up with the increase in prices over time.
What are inflation-indexed treasury bonds?Inflation-indexed treasury bonds (I-bonds) are a type of treasury bond (T-bond) that is linked to the rate of inflation. The United States Treasury Department issued I-bonds in 1998. Treasury bonds are bonds sold by the United States government, and they are regarded as one of the safest investments. These bonds are considered to be an investment vehicle because they have a fixed interest rate.
In conclusion, inflation-indexed treasury bonds are intended for investors who wish to ensure that the returns on their investments keep up with the increase in prices over time. Therefore, the statement "True" is correct.
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a production company needs to finance a piece of equipment (fixed asset) with a useful life of 5 years. the most appropriate credit structure would be a
A production company needs to finance a piece of equipment (fixed asset) with a useful life of 5 years. As a result, businesses must use loan credit structures to help them finance the purchase of equipment.
LoansThe most appropriate credit structure for a production company to finance a piece of equipment with a useful life of 5 years is a medium-term loan. Medium-term loans, also known as installment loans, are financial loans that are repayable in 2 to 10 years, with monthly, semi-annual, or annual payments.
Since the equipment has a useful life of 5 years, a medium-term loan with an equal repayment period would be ideal for a production company to finance a piece of equipment with a useful life of 5 years. Medium-term loans are advantageous in that they can be used to finance capital investments, such as equipment purchases.
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________ states that differential rates of inflation between two countries tend to be offset over time by an equal but opposite change in the spot exchange rate.
A) The Fisher Effect
B) The International Fisher Effect
C) Absolute Purchasing Power Parity
D) Relative Purchasing Power Parity
The International Fisher Effect states that differential rates of inflation between two countries tend to be offset over time by an equal but opposite change in the spot exchange rate. The answer to the given question is option b.
What is the International Fisher Effect?The International Fisher Effect is an economic theory that predicts exchange rates between currencies. According to the International Fisher Effect, the exchange rate between two countries should adjust to compensate for differences in nominal interest rates.The Fisher Effect is the basis of this concept, which assumes that interest rates are proportional to inflation rates in various countries.
According to the Fisher Effect, a country with high inflation will have a higher nominal interest rate, and vice versa. The International Fisher Effect predicts that exchange rates between countries will change in response to differences in these inflation rates and nominal interest rates.The International Fisher Effect was developed to explain why exchange rates fluctuate between two countries. It states that if two countries have different nominal interest rates, the exchange rate between the two countries will adjust over time to reflect the difference in interest rates. Therefore, the International Fisher Effect is important in the currency market to predict future exchange rates.
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when a firm buys or builds facilities in a foreign country it is known as: answer unselected foreign portfolio investment unselected foreign direct investment unselected factoring
When a firm buys or builds facilities in a foreign country, it is known as foreign direct investment.
What is Foreign Direct Investment?Foreign direct investment (FDI) is a form of investment that entails the acquisition or construction of facilities in a foreign country, such as the development of a factory, office, or warehouse. FDI is a strategy used by firms to broaden their horizons by expanding their production capabilities in international markets.
Investment from a foreign country is required for FDI to take place, as the funds are used to purchase or construct assets in the host country. The foreign business's acquisition of assets and management control of the acquired entity are important elements of FDI. Foreign Direct Investment (FDI) is an integral part of the international financial system, with its impact extending to the economies of both the home and host nations.
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The short-run aggregate supply curve is positively sloped because:
A) as the aggregate price level rises, output falls.
B) many input prices such as wages and rents are slow to change in the short run.
C) of the income and substitution effects.
D) the price level does not change in the short run.
B) many input prices such as wages and rents are slow to change in the short run. The short-run aggregate supply curve shows the relationship between the aggregate price level and the number of goods and services that firms are willing and able to supply in the short run.
The short-run aggregate supply (SRAS) curve represents the relationship between the price level and the quantity of output that firms are willing to supply in the short run. The curve is positively sloped because, in the short run, many input prices are fixed or slow to adjust, such as wages and rents. Therefore, when the aggregate price level rises, firms may initially see an increase in profits and output. However, as input prices eventually increase due to inflation, their costs will also rise, leading to a decrease in output. The slow adjustment of input prices means that in the short run, firms are willing to supply more output at higher prices, resulting in a positive slope for the SRAS curve. In contrast, the long-run aggregate supply curve is typically viewed as vertical because, in the long run, input prices can adjust to changes in the aggregate price level.
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in explaining the importance of supply chain sustainability, bob taylor of taylor guitars explains that one of their perspectives when sourcing wood for their guitars: apples grow on trees and oranges grow on trees, but a. apples taste better than oranges b. guitar strings do not grow on trees c. oranges taste better than apples d. wood does not grow on a tree, so when you harvest wood, you are destroying the entire tree,. therefore, you must protect the forests in order to have a sustainable source for wood.
you must protect the forests to have a sustainable source of wood. The correct option is D.
Supply chain sustainability has gained increasing importance in recent years due to the effects of environmental degradation, which has led to climate change, and social issues such as the exploitation of laborers. Bob Taylor of Taylor Guitars explains that when sourcing wood for their guitars, they consider sustainability, which is important.
Sustainability is concerned with meeting the needs of the present without jeopardizing the ability of future generations to meet their own needs. This is achieved through sustainable management and development, which ensures that natural resources are not depleted faster than they can be replenished. Therefore, protecting forests is important for the sustainability of the guitar industry as it helps to maintain the balance of the ecosystem and the livelihoods of people who depend on the forests for their livelihoods.
Wood does not grow on a tree, so when you harvest wood, you are destroying the entire tree. Therefore, you must protect the forests to have a sustainable source of wood.
So, the correct answer is option D (Wood does not grow on a tree, so when you harvest wood, you are destroying the entire tree. Therefore, you must protect the forests to have a sustainable source for wood).
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Evidence-based management includes bragging about new products you have in development. True or False.
False. Evidence-based management involves using the best available evidence to inform decisions and actions in the workplace.
Bragging about new products in development does not necessarily reflect a commitment to using evidence in decision-making. In fact, evidence-based management requires rigorously evaluating the evidence to determine the most effective course of action, rather than relying on assumptions or personal opinions.
Evidence-based management is an approach that involves using the best available evidence to make decisions and take actions in the workplace. This evidence can come from a variety of sources, including scientific research, data analysis, and past experience. The goal of evidence-based management is to ensure that decisions and actions are informed by the most reliable and valid information available, rather than being based on assumptions or personal opinions.
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a government begins the year with $6 trillion of public debt. during the year, it collects taxes of $4 trillion and spends $7 trillion on transfers and government purchases of goods and services. if the government borrows from individuals and institutions outside the government to pay for the deficit, the public debt at the end of the year would be:
The initial public debt of the government is $6 trillion. Hence, the correct option is (c) $9 trillion.
During the year, the government collects $4 trillion from taxes and spends $7 trillion on transfers and government purchases of goods and services. This implies that the government runs a budget deficit of $3 trillion ($7 trillion - $4 trillion).
To pay for the budget deficit, the government borrows from individuals and institutions outside the government. Hence, the public debt at the end of the year would be $9 trillion ($6 trillion + $3 trillion). Hence, the correct option is (c) $9 trillion.
The question is:
a government begins the year with $6 trillion of public debt. during the year, it collects taxes of $4 trillion and spends $7 trillion on transfers and government purchases of goods and services. if the government borrows from individuals and institutions outside the government to pay for the deficit, the public debt at the end of the year would be:
a) $5 trillion
b) $7 trillion
c) $9 trillion
d) $15 trillion
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The CEO of Redd Inc. needs to know the names of the line managers in the company who will soon be ready to take up positions in middle management. The CEO can obtain this information from the _____.A) demand forecastB) job analysisC) supply forecastD) job evaluationE) replacement chart
The correct answer is E," for "replacement chart. The CEO of Redd Inc. can obtain the names of the line managers in the company who will soon be ready to take up positions in middle management from the replacement chart.
What is a replacement chart? A replacement chart is a document that outlines the current status of a company's management succession plan. This strategy ensures that the company is always prepared to fill the key roles when they become available. The main objective of creating a replacement chart is to identify and prepare the most qualified employees to fill key positions in the company when they become available. This makes the succession planning process much smoother and ensures that the company can continue to operate without disruption even when a key employee leaves the organization.
Therefore, in this case, the CEO of Redd Inc. can obtain the names of the line managers in the company who will soon be ready to take up positions in middle management from the replacement chart.
The correct answer is E," for "replacement chart.
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DOL
1.1.6 Discuss any
other TWO types of lobbying.
1.1.7 Identify TWO socio-economic issues affecting Viro Tech and Lerato Communications.
Motivate your answer by quoting from the scenario above.
Use the table below as a GUIDE to answer QUESTION 1.1.6
SOCIO-ECONOMIC ISSUES
1.
2.
MOTIVATIONS
1.1.8 Advice business on solutions to deal with the socio-economic issues identify in
QUESTION 1.1.7
(6)
(8)
Two other types of lobbying are grassroots lobbying and astroturf lobbying.
What is Grassroot lobbying?Grassroots lobbying involves mobilizing individuals or groups at the local level to influence policymakers. Grassroots lobbyists often use social media, email campaigns, and phone calls to connect with policymakers and advocate for their causes. This type of lobbying can be effective because it demonstrates a groundswell of support for an issue and can pressure policymakers to take action.
Astroturf lobbying, on the other hand, is a form of lobbying that creates the impression of widespread grassroots support for a particular issue or position, but is actually organized and funded by a large organization or corporation.
The two socioeconomic issues affecting Viro Tech and Lerato Communications could be:
Income inequality:
The scenario mentions that Viro Tech is a multinational corporation that operates in several countries, while Lerato Communications is a small business based in South Africa. This suggests that Viro Tech has a much higher income and revenue than Lerato Communications. This income inequality between the two companies could lead to various socio-economic issues, such as unfair competition, unequal access to resources, and limited opportunities for small businesses like Lerato Communications to grow and expand.
Youth unemployment:
The scenario also mentions that Lerato Communications is a youth-owned business. This suggests that the company is likely run by young entrepreneurs who may face challenges in securing employment in a competitive job market. Additionally, youth unemployment is a significant socio-economic issue in South Africa, where Lerato Communications is based. The lack of job opportunities for young people can lead to poverty, social unrest, and a lack of economic growth and development.
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Lerato Communications, a small youth-owned business based in Johannesburg, is struggling to compete with multinational corporations like Viro Tech. Despite providing quality services to its clients, Lerato Communications is finding it challenging to grow and expand its business due to limited resources and competition from larger companies.
The income inequality between Viro Tech and Lerato Communications is evident, with Viro Tech generating significantly more revenue and income. This inequality is hindering Lerato Communications' ability to compete fairly and access the resources needed to expand its business.
Moreover, Lerato Communications is also facing challenges related to youth unemployment, which is a significant socio-economic issue in South Africa. The young entrepreneurs who run the company are struggling to find stable employment opportunities, and their small business is their only source of income.
To address these socio-economic issues, the South African government may need to implement policies and initiatives that support small businesses, particularly those run by young entrepreneurs. Such policies could include tax breaks, subsidies, and mentorship programs to help young entrepreneurs grow and develop their businesses. Additionally, the government could focus on creating job opportunities for young people to address the issue of youth unemployment and promote economic growth and development.
what is the discount yield, bond equivalent yield, and effective annual return on a $7 million commercial paper issue that currently sells at 98.75 percent of its face value and is 143 days from maturity?
The discount yield, bond equivalent yield, and effective annual return on a $7 million commercial paper issue that currently sells at 98.75 percent of its face value and is 143 days from maturity are 2.20%, 4.49%, and 8.77% respectively.
The formula for discount yield is:discount yield[tex]= (discount / face value) * (360 / days until maturity)[/tex]
Given that the face value is $7 million, the commercial paper sells at 98.75 percent of its face value. So, the discount is [tex]$7,000,000 × (1 - 0.9875) = $87,500[/tex]
The number of days until maturity is 143. Therefore,
[tex]discount yield = ($87,500 / $7,000,000) × (360 / 143) = 2.20%[/tex]
Bond equivalent yield is given by the formula:[tex]bond equivalent yield = 2 × [(face value - price) / price] × (365 / days until maturity)[/tex]
Here, the face value is $7 million, and the price is 98.75% of the face value. Therefore,
[tex]price = $7,000,000 × 0.9875 = $6,912,500[/tex]
Substituting the values in the formula, we get
[tex]Bond equivalent yield = 2 × [($7,000,000 - $6,912,500) / $6,912,500] × (365 / 143) = 4.49%[/tex]
The effective annual return is calculated as:[tex]effective annual return = (1 + periodic rate) ^ (365 / days) - 1[/tex]
[tex]Effective annual return = (1 + 0.02245) ^ (365 / 143) - 1 = 8.77%[/tex]
Therefore, the discount yield, bond equivalent yield, and effective annual return on a $7 million commercial paper issue that currently sells at 98.75 percent of its face value and is 143 days from maturity are 2.20%, 4.49%, and 8.77% respectively.
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Which of the following are assets? (check all that apply)
a) Cash
b) Accounts Payable
c) Common Stock
d) Accounts Receivable
e) Retained Earnings
Cash and accounts receivable are classified as assets. The assets of a firm typically have value for the company. Hence option A. and D. are correct.
What is assets?The asset account is a category of accounts in which a business keeps track of its economic resources. To calculate the total assets of a company, all assets should be added together.
Total assets are commonly listed on the balance sheet of a company, and they are often used to determine a company's creditworthiness by investors and lenders.
A business's capital or other resources that could be used to make money in the future are referred to as assets. The assets of a firm typically have value for the company. The balance sheet of a business lists assets.
Accounts payable is a liability that shows how much money a business now owes to its vendors and third-party suppliers.
Equity on an organization's balance sheet includes both Common Stock and Retained Earnings. Stockholder investment in a corporation is measured by its common stock.
Retained earnings displays the amount of profits gathered from earlier periods that have been carried forward.
Hence option A. and D. cash and accounts receivable are correct.
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The budgeted income statement does NOT rely on information from the ______ budget.
Multiple choice question.
sales
ending finished goods inventory
selling and administrative expense
production
The budgeted income statement does NOT rely on information from the ending finished goods inventory budget.
Budgeted income statements are prepared in the same way as regular income statements.
The revenue and expense items are based on the budgeted revenue and expenses for the period being reported, rather than the actual revenue and expenses for the period.
The budgeted income statement is usually generated at the end of the budget preparation phase after budgeted financial statements have been prepared for each budget period.
It’s used to show the financial impact of budgeted revenue and expenses on the company’s profitability.
For example, suppose a company generates $500,000 in revenue and incurs $400,000 in expenses. The budgeted net income is $100,000.
The budgeted income statement may provide an item-by-item breakdown of revenue and expense estimates used to produce the budgeted net income.
The budgeted income statement does not depend on information from the ending finished goods inventory budget.
Thus, ending finished goods inventory budget information is not necessary to produce the budgeted income statement.
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2. as a publicly traded corporation, how can home depot justify budgeting so much money for philanthropy? what areas other than the environment, disaster relief, and affordable housing might be appropriate for strategic philanthropy by home depot?
There are 2 main reasons: charitable donations and brand equity.
What are two reasons?First, businesses do receive tax benefits for their philanthropic contributions. As a result, some charitable giving is acceptable because it lowers the company's tax burden.
Second, charitable giving might be considered a strategy for improving Home Depot's brand equity. It is merely an additional form of advertisement in this sense. Home Depot gains favor with the public when, for instance, it contributes to the financial support of Olympic competitors. This justifies these costs because they will boost the business's bottom line. Giving to charity can be justified in these manners even by publicly traded companies.
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Mountain High Ice Cream Company transferred $72,000 of accounts receivable to the Prudential Bank. The transfer was made with recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10% to cover sales returns and allowances. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $6,200). Mountain High anticipates a $4,200 recourse obligation. The bank charges a 2% fee (2% of $72,000), and requires that amount to be paid at the start of the factoring arrangement. Required: Prepare the journal entry to record the transfer on the books of Mountain High assuming that the sale criteria are met. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
The journal entry to record the transfer on the books of Mountain High assuming that the sale criteria are met.
Cash 64,800
Receivable from factor 4,760
loss on sale of receivables 2,440
Mountain High transferred accounts receivable to the Prudential Bank. The transfer was made with recourse. The bank remits 90% of the factored amount to Mountain High and retains 10% to cover sales returns and allowances.
When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates have a fair value of $6,200). Mountain High anticipates a $4,200 recourse obligation. The bank charges a 2% fee (2% of $72,000) and requires that amount to be paid at the start of the factoring arrangement.
Therefore, the following journal entry will be made to record the transfer of accounts receivable from Mountain High to Prudential Bank:
Cash 64,800
Receivable form factor 4,760
Loss on sale of receivables 2,440
Accounts receivable 72,000
The entry debits cash for 90% of $72,000 = $64,800 and the loss on sale of receivables for the 2% fee of $1,440 ($72,000 x 2%).
It credits accounts receivable for the total amount of accounts receivable transferred. It also credits receivable from factor for the remaining balance of the cash that will be received from Prudential Bank.
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elizabeth has not been given the same training as george and thomas in her firm even though they are all programmer iii status and came into the firm at the same time. this is an example of .
Elizabeth has not been given the same training as George and Thomas in her firm even though they are all Programmer III status and came into the firm at the same time. This is an example of unfair treatment or discrimination.
Unfair treatment or discrimination is the unfair and unequal treatment of people based on different characteristics such as gender, race, age, religion, or sexual orientation. Unfair treatment may also include denying someone equal opportunities, benefits, or privileges at work because of their characteristics or traits.According to the situation provided, Elizabeth is not receiving the same training and development opportunities as her colleagues, George and Thomas, who have similar job titles and work experience as hers.
This situation is a perfect example of discrimination and unfair treatment. Discrimination is against the law and can result in serious consequences for an organization, including loss of productivity and reputation, legal consequences, and loss of staff morale.
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what type of financial economy is undertaken to reduce risk among a firm's businesses? a. internal capital market allocation b. restructuring of assets c. vertical integration d. economies of scope
The type of financial economy that is undertaken to reduce risk across a company's businesses is internal capital market allocation. Option a is correct.
What is internal capital market allocation?It corresponds to a financial strategy used by companies to allocate capital resources among their different business units or divisions.
Therefore, the advantages of allocation in the internal capital market is that it allows the company to manage risk, diversifying its business and investment portfolio, in addition to ensuring that resources are allocated in areas with the greatest potential for growth.
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label each sampling type as either biased or unbiased. labels can be used more than once.
snowball sampling, purposive sampling and convenience sampling are biased. systematic sampling, probability sampling and stratified random sampling are unbiased.
Probability sampling is a type of sampling method in which each member of a population has an equal chance of being selected for the sample. This method is considered to be the most reliable and accurate way of obtaining a representative sample from a larger population. Probability sampling can be done using various accounts techniques, including simple random sampling, stratified random sampling, and cluster sampling.
In simple random sampling, each member of the population is selected randomly and independently, while in stratified random sampling, the population is divided into strata or subgroups, and random samples are taken from each stratum. Cluster sampling involves dividing the population into clusters or groups, and random samples are taken from each group.
the complete question is:
label each sampling type as either biased or unbiased. labels can be used more than once.
snowball sampling
purposive sampling
convenience sampling
systematic sampling
probability sampling
stratified random sampling
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If your business is wholesale or retail merchandising, the issues of property, plant, and equipment (PPE) constitute your greatest investments and your greatest costs. True or False
The statement "If your business is wholesale or retail merchandising, the issues of property, plant, and equipment (PPE) constitute your greatest investments and your greatest costs" is False.
What is Wholesale and retail merchandising?Wholesale and retail merchandising involves the sale of products to the end-users. It is a process of buying goods from manufacturers and selling them to customers in the wholesale or retail market.
Wholesale merchandising involves buying goods in bulk from manufacturers and reselling them to retailers, while retail merchandising involves the sale of products directly to customers. In such a business, issues of property, plant, and equipment (PPE) do not constitute the greatest investments and costs.
Instead, the greatest investments and costs are the inventories, followed by the employees. For example, in retail merchandising, the most significant investment is the inventory of the products. The store must have sufficient products to meet the customer's demands.
Therefore, the company has to manage its inventories efficiently to avoid overstocking or understocking.
In addition, employees are a significant cost for both wholesale and retail merchandising. The success of such businesses is largely dependent on how well the employees perform their duties, including customer service, store upkeep, and inventory management.
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Individual firms in perfectly competitive industries are price takers because
A. the government sets all prices.
B. buyers set prices.
C. firms decide together on the best price to charge.
D. each individual firm is too small to affect the market price.
D. each individual firm is too small to affect the market price. Because each firm's output is too little to have an impact on the market price in a fully competitive market, each one is a price taker.
In a perfectly competitive market, there are many small firms that produce identical products or services, and each firm has a negligible share of the total market. This means that the actions of one individual firm will not impact the market price. Firms in such a market are referred to as price takers because they must accept the market price determined by the forces of supply and demand. If a firm tries to charge a higher price, buyers will shift their demand to a competitor, causing the firm to lose market share. Similarly, if a firm tries to charge a lower price, it will not be able to increase its market share significantly. As a result, each individual firm is too small to affect the market price, making it a price taker.
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when audited financial statements are presented in a document containing other information, the auditors should _____
multiple choice a. perform inquiry and analytical procedures to ascertain whether the other information is reasonable. b. add an emphasis-of-matter paragraph describing the other information to the auditors' report without modifying the opinion on the financial statements. c. perform the appropriate substantive procedures to corroborate the other information. d. read the other information to determine that it is consistent with the audited financial statements.
The answer is d. read the other information to determine that it is consistent with the audited financial statements.
When audited financial statements are presented in a document containing other information, the auditors should read the other information to determine that it is consistent with the audited financial statements.
Do financial statements mean?Financial statements are a thing of records that demonstrate the financial standing of your business at a certain moment in time. These give important information on the assets and debts of your business as well as the earnings and expenses incurred.
Why are financial statements?Financial statements give a quick scan of a company's financial situation and include information on its operations, profitability, and cash flow. Financial statements are big since they reveal details about a company's income, costs, profitability, and debt.
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which of the following policies are consistent with the goal of increasing productivity and growth in developing countries? check all that apply. 1. Protecting property rights and enforcing contracts.
2. Pursuing inward-oriented policies.
3. Increasing taxes on income from savings.
4. Imposing restrictions on foreign ownership of domestic capital.
5. Rapid population growth that lowers the stock of capital per worker.
6. The emigration of highly skilled workers to rich countries.
7. Rapid population growth that increases the burden on the educational system.
The policies that are consistent with the goal of increasing productivity and growth in developing countries are as follows: Protecting property rights and enforcing contracts, Promoting education and skill development, Expanding access to credit and financial services, Implementing policies that encourage innovation and entrepreneurship, Encouraging foreign direct investment (FDI) in key sectors of the economy,
Rapid population growth that increases the burden on the educational system is not a policy that is consistent with the goal of increasing productivity and growth in developing countries. Instead, it places a significant burden on the education system and can create additional problems that need to be addressed. The emigration of highly skilled workers to rich countries can also have a negative impact on productivity and growth in developing countries.
This is because these countries lose valuable human capital, which can have a significant impact on their ability to innovate and grow economically. Policy makers in developing countries should focus on implementing policies that promote economic growth and development. This includes policies that encourage innovation, entrepreneurship, and foreign investment.
It also involves protecting property rights and enforcing contracts to create a stable business environment. Additionally, promoting education and skill development can help to improve the overall productivity of the workforce and contribute to economic growth.
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