Answer:
B should be selected.
Explanation:
Below is the calculation of net present worth:
Present value of A = -500000 - 25000 * (P/A, 7%,18)
Present value = -500000 - 25000 * 10.059087
Present value = -751477.17
Present value of B = -640000 - 10000 * (P/A, 7%,18)
Present value = -640000 - 10000 * 10.059087
Present value = -740590.87
The present value of B is lower so it will be selected.
You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.27 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio
Answer:
the beta be for the other stock in your portfolio is 1.73
Explanation:
The computation of the beta be for the other stock in your portfolio is shown below:
Given that
risk free asset contains the beta of 0
And,
market beta = 1
Now
1 = 1 ÷ 3 × 0 + 1 ÷ 3 × 1.27 + 1 ÷ 3 × beta
The beta of other stock = 1.73
hence, the beta be for the other stock in your portfolio is 1.73
Here we assume that one-third should be invested in all 3 things each
Otto invests $ 600 in an account that pays 7.3 % interest compounded annually. How much is in Otto's account after 3 years
Answer:
$741.23
Explanation:
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
600(1.073)^3 = $741.23
A simulation model is used to test the impact of the number of sample customers at a supermarket. As the model is run the decision maker watches the average number of customers in the store rapidly increase from zero until it levels off and holds a constant value. The simulation model is:_________ a. not valid due to the lack of change. b. in steady state c. not valid due to the fluctuation in the statistics. d. a random variable.
Answer:
b. in steady state
Explanation:
As we know that the simulation model should be applied at the time when the number of samples with respect to the customers should be tested. Also it considered for the decision making purpose that shows the average no of customers that instantly increased from the 0 unit in the case when the level is off and also hold the same value. So here the simulation model should be considered as in the steady rate
Therefore the option b is correct
Upper Darby Park Department is considering a new capital investment. The following information is available on the investment. The cost of the machine will be $150,000. The annual cost savings if the new machine is acquired will be $40,000. The machine will have a 5-year life, at which time the terminal disposal value is expected to be $20,000. Upper Darby Park Department is assuming no tax consequences. If Upper Darby Park Department has a cost of capital of 10%, which of the following is closest to the net present value of the project?
a. $1,632
b. $12,418
C. $14,060
d. $150,000
Answer:
c.$14,060
Explanation:
I hope my answer is correct
The difference between new classical theory and new Keynesian theory is that Question 2 options: in new classical theory wages are assumed to be flexible, and in new Keynesian theory wages are assumed to be somewhat inflexible.
Group of answer choices.
A. in new classical theory wages are assumed to be flexible, and in new Keynesian theory wages are assumed to be somewhat inflexible.
B. in new classical theory wages are assumed to be somewhat inflexible, and in new Keynesian theory wages are assumed to be flexible.
C. adaptive expectations is the dominant expectations theory in new classical theory, and rational expectations is the dominant expectations theory in new Keynesian theory.
D. in new Keynesian theory the short-run aggregate supply curve is vertical, and in new classical theory the short-run aggregate supply curve is upward sloping.
Answer:
A. in new classical theory wages are assumed to be flexible, and in new Keynesian theory wages are assumed to be somewhat inflexible.
Explanation:
The new classical theory (neoclassical view) posits that long-term expansion of potential Gross Domestic Products (GDP) due to economic growth will determine the size of a country's economy but the economy cannot sustain production above its potential Gross Domestic Products (GDP) in the long run.
John Maynard Keynes was a British economist born on the 5th of June, 1883 in Cambridge, England. He was famous for his brilliant ideas on government economic policy and macroeconomics which is known as the Keynesian theory. He later died on the 23rd of April, 1946 in Sussex, England.
According to the new Keynesian theory, government spending or expenditures should be increased and taxes should be lowered when faced with a recession, in order to create employment and boost the buying power of consumers.
Hence, the difference between the new classical theory (neoclassical view) and new Keynesian theory is that, in new classical theory wages are assumed to be flexible by economists while in new Keynesian theory wages are assumed to be somewhat inflexible.
The Federal Arbitration Act (FAA) allows for arbitration clauses in employment contracts. False True
Answer:
True
Explanation:
It is TRUE that the Federal Arbitration Act (FAA) allows for arbitration clauses in employment contracts.
The above statement is echoed in the Epic Systems Corp. v. Lewis on May 21, 2018, where the Supreme Court gave its ruling that the FAA is totally enforceable in the individual arbitration agreements contracts.
Similarly, in the case of American Express Co. v. Italian Colors Restaurant, the court ruled that necessary arbitration clauses are legal.
Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a particular item were available for sale during the calendar year:
Jan. 1 Inventory 4,000 units at $40
Apr. 19 Sale 2,500 units
June 30 Purchase 4,500 units at $44
Sept. 2 Sale 5,000 units
Nov. 15 Purchase 2,000 units at $46
Required:
The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale.
Answer:
Cost of goods sold:
Apr. 19 = $100,000
Sept. 2 = $215,000
Inventory Balance on:
Apr. 19 = $60,000
Sept. 2 = $43,000
Explanation:
a) Data and Calculations:
Date Description Units Unit Price Inventory Cost of Sales
Jan. 1 Inventory 4,000 $40 $160,000
Apr. 19 Sale 2,500 $40 $60,000 $100,000
June 30 Purchase 4,500 $44 $258,000 ($44 * 4,500 + $60,000)
Sept. 2 Sale 5,000 $43 $43,000 $215,000
Nov. 15 Purchase 2,000 $46 $135,000 ($46 * 2,000 + $43,000)
actor Co. can produce a unit of product for the following costs: Direct material $ 8.60 Direct labor 24.60 Overhead 43.00 Total product cost per unit $ 76.20 An outside supplier offers to provide Factor with all the units it needs at $48.40 per unit. If Factor buys from the supplier, the company will still incur 60% of its overhead. Factor should choose to:
Answer:
Relevant cost to make = Direct materials + Direct labor + Variable overhead
Relevant cost to make = $8.60 + $24.60 + $43.00 (1-60%)
Relevant cost to make = $8.60 + $24.60 + $17.20
Relevant cost to make = $50.40
Outside supplier cost ($48.40) < Relevant cost to make ($50.40). So, Factor should choose to buy because the relevent cost is less than outside supplier cost.
the black shoe company produces its famous madison shoe, which sell for $60m per pair, the operating income for 2020 is as follows: Revenues $300,000 Variable costs $120,000 Fixed costs $108,000
What is the break-even point in units?
g Privett Company Accounts payable $33,411 Accounts receivable 66,433 Accrued liabilities 6,512 Cash 22,494 Intangible assets 37,191 Inventory 89,982 Long-term investments 110,819 Long-term liabilities 75,872 Marketable securities 34,976 Notes payable (short-term) 29,393 Property, plant, and equipment 671,232 Prepaid expenses 1,809 Based on the data for Privett Company, what is the quick ratio, rounded to one decimal point
Answer:
1.79
Explanation:
Quick ratio = (Current assets - Inventory - Prepaid expenses) / Current liabilities
Quick ratio = (Account Receivable + Cash + Marketable securities) / (Account Payable + Accrued liabilities + Notes payable)
Quick ratio = (66,433 + 22,494 + 34,976) / (33,411 + 6,512 + 29,393)
Quick ratio = $123,903 / $69,316
Quick ratio = 1.78751
Quick ratio = 1.79
how does Samsung share its knowledge within the Samsung organization,
Answer:
Samsung has developed several programs within the organization with the core objective of increasing employees' creativity. One of these programs corresponds to an incentive to register patents, supported by a management system that allows the sharing of knowledge among collaborators. The company also encourages brainstorming, which motivates employees to collaborate with creative and innovative ideas for the organization.
Samsung's strategy is to focus its culture on producing creativity and employee motivation through valuing work and personal satisfaction, as with the company's incentives to promote innovation through community contribution and knowledge sharing, employees feel more valued, motivated and consequently more productive.
Answer:
Samsung's strategy is to focus its culture on producing creativity and employee motivation through valuing work and personal satisfaction, as with the company's incentives to promote innovation through community contribution and knowledge sharing, employees feel more valued, motivated and consequently more productive.
Explanation:
If a firm's marginal tax rate is increased, this would, other things held constant, lower the cost of debt used to calculate its WACC. True False
Answer:
The answer is "True".
Explanation:
The marginal rate is indeed the extra income tax about any dollar earned as income. Its annual tax rate is the total tax paid divided by the total earnings. This marginal rate of 10% will impose a tax of 10 cents on every following income spent. that's why the given statement is true because the cost of debt [tex]= k\times (1-t)[/tex] and its t value will increase the cost of the decrease.
how to calculate current ratios
Answer:
Current ratios = [tex]\frac{Current Assets}{Current Liabilities}[/tex]
On January 1, Year 1, Renquist Corp. borrowed $100,000 by signing a 5-year note payable with annual interest of 8%. The terms of the contract require Renquist to repay the principal over 5 years with a payment of $20,000 made at the end of each year. On December 31, Year Renquist made the first payment plus interest On January 1 Year 2. what portion of the note should be classified as noncurrent liabilities?
a. $60,000
b. $20,000
c. $80,000
d. $100,000
Answer: $60,000
Explanation:
The portion of the note that should be classified as noncurrent liabilities will be calculated thus:
Note payable balance on January 1, year 1 = $100,000
Since the terms of the contract require Renquist to repay the principal over 5 years with a payment of $20,000 made at the end of each year, the note payable repaid on December 31, year 1 will be $20,000
Therefore, the note payable balance on Jan 1, year 2 will then be:
= $100,000 - 20,000
= $80,000
Therefore, from the $80,000 note payable, $20,000 will represent current liabilities. Hence, the non current liabilities will be:
= $80000 - $20000
= $60000
Helppppppp pleaseeee
Answer:
B
Explanation:
I think but i may be wrong
A high-tech computer company reported the following information in a recent annual report (all dollar amounts are expressed in millions): Net revenue $49,205 Cost of Goods Sold $40,190 Production materials on-hand $228 Work-in-process and finished goods on-hand $231 What is the current value of weeks of supply
Answer:
See below
Explanation:
With regards to the above information, current value of the week of supply is calculated as shown below;
The week of supply Informs the manager how long the current on hand varies
= $228 ÷ $231
= 0.99 weeks
If a company is going to use this method of dealing with surplus employees effectively, it must protect the bottom line and the corporate brand, pay attention to survivors, and identify the work that is core to sustaining a profitable business.
a. Attrition
b. Downsizing
c. Voluntary separation
d. Reducing compensation
Answer: Downsizing
Explanation:
Downsizing refers to the permanent reduction in the labor force of a company. Downsizing is common in organizations as it is associated with failing businesses and economic downturns.
Since the company is going to downsize, it must protect the bottom line and the corporate brand, and pay attention to survivors. The brand of the company should be protected as he downsizing might generate bad news hence it should be protected.
The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts.
Note: You must complete part 1 before completing part 2.
Based on the following data, prepare a bank reconciliation for December of the current year:
a. Balance according to the bank statement at December 31, $283,000.
b. Balance according to the ledger at December 31, $245,410.
c. Checks outstanding at December 31, $68,540.
d. Deposit in transit, not recorded by bank, $29,500.
e. Bank debit memo for service charges, $750.
f. A check for $12,700 in payment of an invoice was incorrectly recorded in the accounts as $12,000.
Enter all amounts as positive numbers.
Kornett Company
Bank Reconciliation
December 31, 2014
Subtotal
Adjusted Balance
Deduct
Adjusted Balance
Answer:
Balance as per bank statement $243,960
Balance as per ledger $243,960
Explanation:
Preparation of a bank reconciliation for December of the current year
KORNETT COMPANY Bank Reconciliation
December 31, 2014
Balance as per bank statement at December 31 $283,000
Add deposit in transit $29,500
Less check outstanding ($68,540)
Adjusted balance $243,960
Balance as per ledger at December 31 $245,410
Less bank service charges ($750)
Less Error in recording in check ($700)
($12,700-$12,000)
Adjusted balance $243,960
Therefore bank reconciliation for December of the current year will be :
Balance as per bank statement $243,960
Balance as per ledger $243,960
A small firm builds television antennas. The investment in plan and equipment is $200,000. The variable cost per television antenna is $500. The price of the television antenna is $1000. How many television antennas would be needed for the firm to break even
Answer:
Break-even quantity is 400 units.
Explanation:
Below is the calculation for the number of television antennas:
At break-even, the firm's total revenue is equal to the total cost.
Cost of investment (fixed cost) = $200000
Variable cost = $500
Pirce of television antenna = $1000
At break-even, TR = TC
(P x Q) = (TFC + TVC)
1000Q = 200000 + 500Q
10000Q-500Q = 200000
500Q = 200000
Q = 200000 / 500
Q = 400 units
Thus break-even quantity is 400 units.
Tia and Sam are partners who solely own T and S Florist. As owners, they can:______.
a. claim the organization as their legal property.
b. can't sell the company.
c. claim only limited liability.
d. avoid taking any legal responsibility for T and S.
e. decide not to pay a dividend to their stockholders.
Answer:
A
Explanation:
Which statement is true of the relationship between risk and return?
O The grear the risk, the greater the potential return.
O The relationship between risk and return varies.
The greater the risk, the lower the potential return.
O The relationship depends on the individual investment.
Answer:
the relationship depends on the individual investment
Answer:
The relationship depends on the individual investment
Sam and Sally Green have a standard homeowners policy with no endorsements. The dwelling is insured for its full value. Indicate whether or not each of the following losses is covered and under what coverage. Specify why each loss is covered or not covered.
a. The Green's valuable dog is stolen from their back yard.
b. Sally takes off her wedding ring in a public restroom to wash her hands. She accidentally leaves the ring behind.
c. While the Green's are vacationing in Europe, their hotel room is robbed. The thief gets away with jewels and cash.
d. While practicing his chip shot in the yard, Sam accidentally sends a golf ball crashing through the dining room window.
Answer:
a. Not covered
b. Not covered
c. Covered
d. Covered
Explanation:
Sam and Sally have standard homeowner policy. There are no endorsements to the policy. The standard policy will cover the house damage due to accident or some other reasons unintentionally. When dog is stolen this is not covered in the policy as there is no endorsement for the dog security insurance in the policy. Sally has left her ring due to her carelessness and thus this is also not covered in the policy. When Sam accidentally breaks dining room window this will be covered in the basic policy.
Supplies are assets until they are used. When they are used up, their costs are reported as expenses. The costs of unused supplies are recorded in a Supplies asset account. Supplies are often grouped by purpose—for example, office supplies and store supplies. Office supplies include paper, toner, and pens. Store supplies include packaging and cleaning materials.
Question Completion:
Describe the accounting treatment of Supplies Expenses.
Answer:
Supplies Expenses are debited while the Supplies account is credited with the supplies expenses.
Explanation:
This accounting treatment of Supplies Expenses reduces the balance of the Supplies account by the amount of supplies used during the period. Thus, what is left in the Supplies account is the cost of the unused supplies at the end of the accounting period. The treatment also accords with the accrual concept, which requires that expenses are matched to the revenues that they generate in the period.
Instead of investing a lump of sum of $25000,Brittany Royer decides to svae the money in a vault for 2years. Assuming the inflation being 2.5%per year,how much will her purchasing power decline in 2years
Answer:
$1265.63
Explanation:
Inflation is a persistent rise in the general price levels
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
Loss in purchasing value = future value of the amount saved - amount saved
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
$25000 (1.025)² = $26.265.625
Amount lost = $26.265.625 - $25,000 = $1265.63
Which of the following is the best definition of transferable skills?
Answer:
Skills that you may have learned in one context that you can take with you to many other contexts and industries.
Explanation:
Considering the available options, the best definition of transferable skills is "Skills that you may have learned in one context that you can take with you to many other contexts and industries."
This is based on the fact that transferable skills are skills and talents or proficiency that are considered suitable and valuable across different situational roles, including social context, and professional context. Good examples are creativity, leadership, and time management.
5. On Anna's SAR, the "Your Financial Aid History Information" section is blank or N/A. Why?
Answer:
Because she doesn't have any outstanding debts.
Explanation:
The financial aid history refers to the outstanding debts that Anna needs to pay. When this history appears blank, without any information, it means that she has already paid off all her debts and no longer has any outstanding loan, with non-payment.
Examine a product that has recently changed prices when you were at the grocery store in the past week. Analyze one determinant of supply and demand that has created the price to increase or decrease in your example. How did the change in demand or supply affect the market price in your example
Answer:
In the store the bread seemed to have a higher demand this week. When we went monday the shelfs were full of bread and the bread was 3.75 and when we went saturday it was 3.99. I think because it was in higher demand the bread went uo in cost so they wouldn't sell out.
A business manager finds that the building expense each month is completely uncorrelated with revenue levels. What should the business manager assume about this cost?
Answer:
The business manager should assume that the building expense is fixed.
Explanation:
Fixed costs are not correlated with the revenue levels. Within the relevant range, fixed costs remain constant. They do not vary with the activity levels as variable costs do. For example, a manufacturer must pay for rent, repairs and maintenance, and utility bills irrespective of the revenue levels at which it is operating. This is why the business manager always discovers that the building expense each month does not correlate with the revenue levels, unlike the product's variable costs.
radar plumbers do plumbing for household.Their service for the year bought in an income of R86000 .They paid out R36 200 for material ,R12400 for water and electricity,R3 800 for telephone and R18 900 for other expenses.. calculate whether the business make profit or loss
Answer:
the business is making a profit of R14700
Explanation:
A business earns a profit if total cost is less than revenue and a business earns a loss of total cost exceeds revenue
total cost = R36 200 + ,R12400 + ,R3 800 + R18 900 = 71,300
total revenue = R86000
revenue exceeds cost, so a profit is being made
profit = R86000 - 71,300 = R14,700
Kleen Company acquired patent rights on January 10 of Year 1 for $400,000. The patent has a useful life equal to its legal life of eight years. On January 7 of Year 4, Kleen successfully defended the patent in a lawsuit at a cost of $20,000.
Required:
a. Determine the patent amortization expense for the Year 4 ended December 31.
b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization.
Answer:
a. Particulars Amount
Patent cost $400,000
Less: Amortization for 3 years $150,000 ($400,000*3/8)
Book value at the end of year 3 $250,000
Addition during Year 4 $20,000
Total book value $270,000
Patent amortization expense for the Year 4 = Total book value / Remaining life
Patent amortization expense for the Year 4 = $270,000 / 5
Patent amortization expense for the Year 4 = $54,000
b. Adjusting Entry
Date Account titles Debit Credit
Amortization expense $54,000
Patents $54,000
