Answer: is increased by credits
Explanation:
Revenue accounts are increased by credits because they are an equity account and equity accounts increase by credit. This is because the corresponding entry would be an asset such as cash and as the asset has to increase by being debited, revenue must be increased by credit.
Other accounts that are increased by credit include liabilities. Accounts that increase by debits apart from assets include purchases and expenses.
The most significant real economic cost of high unemployment is: the potential goods and services that might have been produced but weren't. the money cost of retraining persons to obtain new jobs. the lost tax revenue that might have been paid by persons if they had worked. the money cost of unemployment insurance payments to the unemployed.
Answer:
the potential goods and services that might have been produced but weren't.
Explanation:
Unemployment occurs when those who are willing and able to work do not have jobs
Types of unemployment
structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition. Structural unemployment tends to be permanent.
Frictional unemployment: the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.
Voluntary unemployment: e.g. worker at a fast-food restaurant who quits work and attends college.
Cyclical unemployment: it occurs as a result of fluctuations in the economy. Unemployment would be high in a downturn and low in a boom
Economic cost or implicit cost or opportunity cost is cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
One of the most significant economic cost of unemployment is the potential output lost as a result of unemployment
A(n) ______ cost requires a future outlay of cash and is relevant for current and future decision making. Multiple choice question. opportunity sunk historical out-of-pocket
Answer:
out-of-pocket
Explanation:
In Accounting, costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
Cost pool is simply the amount of money spent by a firm on a particular activity.
Generally, an activity-based costing uses numerous cost pools such as manufacturing cost or customer services and numerous cost drivers such as direct labor hours worked, number of changes used in engineering department, etc.
Generally, an out-of-pocket cost requires that an individual or business outlay their future cash-flow and it must be relevant for current and future decision making.
Angelina's made two announcements concerning its common stock today. First, the company announced that its next annual dividend has been set at $2.20 a share. Secondly, the company announced that all future dividends will increase by 5% annually. What is the maximum amount you should pay to purchase a share of Angelina's stock if your goal is to earn a 10% rate of return
Answer:
44
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
2.2 / 0.1 - 0.05 = 44
Using the Base Case, calculate total depreciation expense for the year 2023E. Assume that depreciation expense on assets pre-2020E is $15,000 per year. Depreciation on capital expenditures made from 2020E-2024E assumes a 4-year useful life and a salvage value equal to 10% of the original cost.
Review Later
a) $19,500
b) $33,000
c) $30,000
d) $20,000
Answer:
b) $33,000
Explanation:
Capital Expenditure = $20,000
Salvage Value in % = 10%
Useful Life = 4 Years
Salvage Value = Salvage Value% * Capital Expenditure
Salvage Value = 10% * 20,000
Salvage Value = $2,000
Annual Depreciation = (Capital Expenditures - Salvage Value) / Useful Life
Annual Depreciation = ($20,000 - $2,000) / 4
Annual Depreciation = $18,000 / 4
Annual Depreciation = $4,500
Depreciation of 2023E = Depreciation Pre 2020E + Depreciation on capital expenditures in 2020E + Depreciation on capital expenditures in 2021E + Additional Depreciation on capital expenditures in 2022E + Additional Depreciation on capital expenditures in 2023E
Depreciation of 2023E = $15,000 + $4,500 + $4,500 + $4,500 + $4,500
Depreciation of 2023E = $33,000
At February 1, 2022, the balance in Wildhorse Co. supplies account was $3780. During February Wildhorse purchased supplies of $3240 and used supplies of $4320. At the end of February, the balance in the Supplies account should be
Answer: $2,700
Explanation:
The balance in Supplies account at the end of February can be calculated using the formula:
= Beginning balance + Supplies purchased in the month - Supplies used in the month
= 3,780 + 3,240 - 4,320
= $2,700
According to a survey done by the Anti-Fraud Collaboration, the majority of participants believe it is the job of senior executives within an organization to set the tone to deter fraud.
a) true
b) false
Suppose you have $10,000 in savings when the price level index is at 100. Instructions: Enter your responses rounded to the nearest whole number. a. What is the real value of your savings if the price level increases by 6 percent for the year
Answer: $9091
Explanation:
The real value of the savings if the price level increases by 6 percent for the year will be calculated thus:
Real Value = Nominal Value × CPI of previous year / CPI of current year
The CPI of current year will be:
= 100 + (100 × 10/100)
= 110%
Then, the real value will be:
= $10000 × 100/ 110
= $9091
Texas Curtain Works is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 70 percent of sales. Fabric purchases and payments are to be made during the month preceding the month of sale. Wages are estimated at 20 percent of sales and are paid during the month of sale. Other operating costs amounting to 25 percent of sales are to be paid in the month following the month of sales. Sales revenue is forecasted as follows:
Month Sales
February $440,000
March $450,000
April $480,000
May $500,000
June $510,000
What is the amount of fabric purchases during the month of March?
a) $480,000
b) $336,000
c) $288,000
d) $300,000
Answer:
b. $336,000
Explanation:
Here, the Fabric purchases & payments are to be made during the month before the month of sale.
The Amount of fabric purchases during the month of march = 70% of sales of the month of April
Purchases of March = 70% * $480,000
Purchases of March = 0.70 *$480,000
Purchases of March = $336,000
So, the amount of fabric purchases during the month of March is $336,000.
Question 3 4 Marks Mi Tierra Driving School charges $680 per student to prepare and administer written and driving tests. Variable costs of $408 per student include trainers’ wages, study materials, and gasoline. Annual fixed costs of $63,920 include the training facility and fleet of cars. Requirements 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units by first referring to the original data provided: a. Breakeven point with no change in information. b. Decrease sales price to $544 per student. c. Decrease variable costs to $340 per student. d. Decrease fixed costs to $53,040.
Answer:
Results are below.
Explanation:
Giving the following information:
Selling price= $680
Unitary variable cost= $408
Fixed cost= $63,920
To calculate the contribution margin and break-even point in units, we need to use the following formula:
Unitary contribution margin= selling price - unitary variable cost
Break-even point in units= fixed costs/ contribution margin per unit
a:
Unitary contribution margin= 680 - 408= $272
Break-even point in units= 63,920 / 272
Break-even point in units= 235
b:
Unitary contribution margin= 544 - 408= $136
Break-even point in units= 63,920 / 136
Break-even point in units= 470
c:
Unitary contribution margin= 680 - 340= $340
Break-even point in units= 63,920 / 340
Break-even point in units= 188
d:
Unitary contribution margin= 680 - 408= $272
Break-even point in units= 53,040 / 272
Break-even point in units= 195
Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $2.30 per unit. Bluebird currently produces and sells 75,000 units at $6.30 each. This level represents 80% of its capacity. Production costs for these units are $3.55 per unit, which includes $1.90 variable cost and $1.65 fixed cost. If Bluebird accepts this additional business, the effect on net income will be:
Answer:
Increase
Explanation:
If Bluebird accepts this additional business, the effect on net income will be:
There is a proverb "anything worth doing is worth doing well." Do you think an economist would agree with this proverb? A. No, because doing something well has no next best alternatives with which to compare. B. Yes, because the marginal of extra effort is typically as effort increases. C. Yes, because doing something to the best of your ability is optimizing behavior. D. No, because the marginal cost of extra effort may be greater than the marginal benefit. E. , because the total net benefit of extra effort is by definition.
Answer:
D. No, because the marginal cost of extra effort may be greater than the marginal benefit.
Explanation:
Marginal cost can be defined as the additional or extra cost that is being incurred by a company as a result of the production of an additional unit of a product or service.
Generally, marginal cost can be calculated by dividing the change in production costs by the change in level of output or quantity.
Utility can be defined as any satisfaction or benefits a customer derives from the use of a product or service.
This ultimately implies that, any satisfaction or benefits a customer derives from the use of a product or service is generally referred to as a utility.
Furthermore, the marginal utility of goods and services is the additional satisfaction that a consumer derives from consuming or buying an additional unit of a good or service.
Hence, an economist wouldn't agree with the proverb (anything worth doing is worth doing well.) because the marginal cost of extra effort may be greater than the marginal benefit.
This ultimately implies that, the satisfaction that an individual such as an entrepreneur would derive from putting in more efforts into a business would be lesser than the cost incurred. As a result, he would not benefit anything or generate profit from his efforts.
A manufacturing company has a beginning finished goods inventory of $28,300, cost of goods manufactured of $58,500, and an ending finished goods inventory of $27,600. The cost of goods sold for this company is
Answer:
the cost of goods sold is $59,200
Explanation:
The computation of the cost of goods sold is shown below:
Cost of goods sold = Beginning finished goods inventory + cost of goods manufactured - ending finished goods inventory
= $28,300 + $58,500 - $27,600
= $59,200
Hence, the cost of goods sold is $59,200
The electronic invoicing and payment (EIPP) system for the B2B environment is similar to the electronic bill presentment and payment (EBPP) system for the B2C environment. a) True b) False
Answer:
a) True
Explanation:
Electronic bill payment and presentment (EBPP) can be regarded as process that is been utilized by
companies in collection of payments electronically by utilization of systems such as Automated Teller Machines (ATMs) as well as Internet and direct-dial access. This has turned to a core component of online banking as regards to some financial institutions today, some industries such as telecommunications and insurance providers make use of it.
Electronic invoicing and presentment payment (EIPP) can be regarded as process involving sending of electronic invoice to customers using the internet, as well as the ability of customers to be able to pay that invoice online also. It give a solution that brings about increased productivity, as well as given room for business owner to spend more time in developing their business as well as relationships with their customers.
It should be noted that the The electronic invoicing and payment (EIPP) system for the B2B environment is similar to the electronic bill presentment and payment (EBPP) system for the B2C environment.
Davis Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Material costs 7,500 75% Conversion costs 4,999 45% A total of 5,400 units were started and 4,700 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs $112,900 Conversion costs $93,900 The ending inventory was 85% complete with respect to materials and 30% complete with respect to conversion costs. The cost per equivalent unit for materials for the month in the first processing department is closest to:__________.
a. $21.37
b. $19.47
c. $20.04
d. $20.76
Answer:
The answer is "21.37'
Explanation:
Please find the solution in the attached file.
g how long (in years) will it take to triple an investment made at a 2% interest rate if the interest is compounded monthly
Allen Green is a single taxpayer with an AGI (and modified AGI) of $214,000, which includes $172,000 of salary, $26,200 of interest income, $10,400 of dividends, and $5,400 of long-term capital gains. What is Allen's net investment income tax liability this year, rounded to the nearest whole dollar amount
Answer:
$532
Explanation:
The income that is considered for NIIT is the (a) lesser of the net investment income or (b) the amount by which MAGI exceeds the applicable threshold.
a. $42,000 ($26,200 interest income + $10,400 dividends + $5,400 Long-term capital gains)
b. $14,000 ($214,000 - $200,000)
Note: MAGI threshold of $200,000 for single taxpayer is applicable before they fall under the NIIT bracket of 3.8% of tax.
Net Investment Income = $14,000
Net investment income tax liability = Net Investment Income * 3.8%
Net investment income tax liability = $14,000 * 3.8%
Net investment income tax liability = $532
So, Allen's net investment income tax liability this year is $532.
Caber corporation applies manufacturing overhead on the basis of machine-hours. at the begining of the most recent year, the company based it predetermined overhead rate on total estimated overhead of $60,600. Actual manufacturing overhead for the year amounted to $59,000 and actual machine-hours were 5,900. The company's predetermined overhead rate for the year was $10.10 per machine-hour.
a. The pre-determined overhead rate was based on how many estimated machine-hours?
A. 5,783.
B. 6,000.
C. 5,900.
D. 5,842 24.
b. The applied manufacturing overhead for the year was closest to:_____.
A. $58,017.
B. $59,590.
C. $60,600.
D. $58,597.
c. The overhead for the year was:_____.
A. $1,010 underapplied.
B. $590 overapplied.
C. $590 underapplied.
D. $1,010 overapplied.
Answer and Explanation:
The calculation of each part is given below:
a. The estimated machine hours is
= $60,600 ÷ 10.10
= 6,000 machine hours
b. The applied manufacturing overhead is
= 5,900 × $10.10
= $59,590
c. The overhead should be
= $60,600 - $59,590
= $1,010 underapplied
In this way each and every part should be determined
So the same should be considered and relevant
Prior to recording adjusting entries, the Office Supplies account had a $490 debit balance. A physical count of the supplies showed $175 of unused supplies available. The required adjusting entry is: debit/credit [ Select ] to [ Select ] account for [ Select ] debit/credit [ Select ] to [ Select ] account for [ Select ]
Answer: See explanation
Explanation:
Based on the information that's provided in the question, the required adjusting entry goes thus:
Unadjusted ending balance of supplies = $490
Actual supplies ending balance existing physically = $175
From the information above, the supplies used during the period will be:
= $490 - $175
= $315
Therefore,
Debit office supplies expenses $315 Credit office supplies account $315
Consider the following gasoline sales time series data. Click on the datafile logo to reference the data.
Week Sales (1000s of gallons)
1 16
2 20
3 20
4 23
5 18
6 17
8 19
9 23
10 19
11 14
12 21
a. Using a weight of 1/2 for the most recent observation, 1/3 for the second most recent observation, and 1/6 the most recent observation, compute a three-week weighted moving average for the time series (to 2 decimals). Enter negative values as negative numbers.
Week
Time-Series Value Weighted Moving
Average Forecast Forecast
Error
(Error)2
1
2
3
4
5
6
7
8
9
10
11
12
Total
b. Compute the MSE for the weighted moving average in part (a).
MSE =
Do you prefer this weighted moving average to the unweighted moving average? Remember that the MSE for the unweighted moving average is 8.90.
Prefer the unweighted moving average here; it has a (greater/smaller) MSE.
c. Suppose you are allowed to choose any weights as long as they sum to 1. Could you always find a set of weights that would make the MSE at least as small for a weighted moving average than for an unweighted moving average? (Yes/ No)
Answer:
a) attached below
b) MSE for weighted moving average = 14.5
c) Yes
Explanation:
a) Computing a three-week weighted moving average using
1/2 for most recent , 1/3 for second most recent and 1/6 for third most recent observation
Given data :
Week Sales (1000s of gallons)
1 16
2 20
3 20
4 23
5 18
6 17
7 19
8 23
9 19
10 14
11 21
solution attached below
B) Determine MSE for the weighted moving average
MSE = ∑ (error)^2 / 8
= 116.0289 / 8 = 14.50
The MSE for unweighted moving average ( 8.90 ) is smaller than the MSE for weighted moving average
C) Yes I will find a weight that makes at least the MSE for weighted moving average than unweighted moving average
today, many long-term care policies are treated as tax-qualified contracts. Which of the following is not correct regarding tax-qualified long-term care contracts?
A. Tax-qualified long-term care policies must provide benefits that are limited to long-term care services.
B. These policies can be provided under an employer sponsored cafeteria plan.
C. These policies allow employers to provide this benefit, take a curent income tax deduction and allow the employee to avoid income inclusion.
D. The premiums for these policies may be deductible either above the line or below line.
Answer:
C. These policies allow employers to provide this benefit, take a current income tax deduction and allow the employee to avoid income inclusion.
Explanation:
Tax qualified long term care contracts usually insurance policies which provide benefit to the company and policy amounts can be deducted from the tax. These benefits are limited to the long term care services. The premium amount of these policies is deductible which provide tax benefit.
The marginal product of labor in the production of computer chips is chips per hour. The marginal rate of technical substitution (MRTS) of hours of labor for hours of machine capital is . What is the marginal product of capital? The marginal product of capital is nothing chips per hour. (Enter your response as an integer.)
Answer: 500 chips per hour
Explanation:
Marginal rate of technical substitution is calculated by the formula:
= Marginal product of labor / Marginal product of capital
0.20 = 100 / marginal product of capital
Marginal product of capital * 0.20 = 100
Marginal product of capital = 100 / 0.20
= 500
The following information applies to the questions displayed below] A local Chevrolet dealership carries the following types of vehicles
Inventory Items Quantity Cost per unit NRV per Unit
Vans 4 27000 25000
Trucks 7 18000 17000
2-door sedans 3 13000 15000
4-door sedans 5 17000 20000
Sports cars 1 37000 40000
SUVs 6 30000 28000
Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks
A) Compute the total cost of the entire inventory.
B) Determine whether each inventory item would be reported at cost or net realizable value (NRV).
C) Prepare necessary journal entry to write down inventory from from close to net realize value.
D) The write-down of inventory from cost to net realizable value reduces total assets and increases total expenses, leading to lower net income and lower retained earnings. True OR False
Answer:
Chevrolet Dealership
A) The total cost of the entire inventory is:
= $575,000
B) Each inventory would be reported at the LCNRV:
Inventory Items Quantity Reporting Cost/Value
Vans 4 NRV
Trucks 7 NRV
2-door sedans 3 Cost
4-door sedans 5 Cost
Sports cars 1 Cost
SUVs 6 NRV
C) Journal Entry:
Debit Cost of goods sold $27,000
Credit Inventory $27,000
To write-down costs to net realizable values.
D) TRUE.
Explanation:
a) Data and Calculations:
Inventory Items Quantity Cost per unit NRV per Unit LCNRV
Vans 4 27000 $108,000 25000 $100,000
Trucks 7 18000 126,000 17000 119,000
2-door sedans 3 13000 39,000 15000 39,000
4-door sedans 5 17000 85,000 20000 85,000
Sports cars 1 37000 37,000 40000 37,000
SUVs 6 30000 180,000 28000 168,000
Total Cost $575,000 $548,000
Investment A cost 12,000 today and it pays back 15,500 two years from now. Investment B cost $8,000 today and it pays back $6,000 each year for two years. If Interest of 5% is used, which alternate is superior? (Hint: Use present worth your cost is negative and your profits are positive) Group of answer choices
Answer:
Investment "B" is superior.
Explanation:
Below is the calculation of each investment net present worth.
Net present worth of Investment A = -12000 + 15500(P/F, 5%, 2)
Net present worth of investment A = -12000 + 15500 (0.9070)
Net present worth of investment A = 2058.95
Net present worth of Investment B = -8000+ 6000(P/A, 5%, 2)
Net present worth of investment B = -8000 + 6000 (1.8594)
Net present worth of investment B = 3156.4
Investment "B" is superior because its net present worth is greater.
On January 1, 2020, Ellison Co. issued eight-year bonds with a face value of $5,000,000 and a stated interest rate of 8%, payable semiannually on June 30 and December 31. The bonds were sold to yield 6%. The issue price of the bonds is closest to:
Answer:
"$4,417,800" is the correct solution.
Explanation:
According to the question,
Principal amount,
= $5,000,000
Number of period will be:
= [tex]8\times 2[/tex]
= [tex]16[/tex]
Interest rate yield per period will be:
= [tex]\frac{8 \ percent}{2}[/tex]
= [tex]4[/tex] %
Interest rate started per period will be:
= [tex]\frac{6 \ percent}{2}[/tex]
= [tex]3[/tex] %
Now,
The present value of principal will be:
= [tex]Principal\ amount\times Yield \ discount \ factor[/tex]
= [tex]5,000,000\times 0.534[/tex]
= [tex]2,670,000[/tex] ($)
The present value of interest will be:
= [tex]Interest \ amount\times Yield \ discount \ factor[/tex]
= [tex](5,000,000\times 3 \ percent)\times 11.652[/tex]
= [tex]1,747,800[/tex] ($)
hence,
The issue price of bonds will be:
= [tex]2,670,000+1,747,800[/tex]
= [tex]4,417,800[/tex] ($)
QS 4-20B Recording estimates of future returns LO P6 ProBuilder reports merchandise sales of $92,000 and cost of merchandise sales of $32,200 in its first year of operations ending June 30. It makes fiscal-year-end adjusting entries for estimated future returns and allowances equal to 2% of sales, or $1,840, and 2% of cost of sales, or $644. a. & b. Prepare the June 30 fiscal-year-end adjusting journal entry for future returns and allowances related to sales and cost of sales.
Answer:
a. June 30
Dr Sales returns and allowances $1,840
Cr Sales refund payable $1,840
b. June 30
Dr Inventory returns estimated $640
Cr Cost of goods sold $640
Explanation:
a. & b. Preparation of the June 30 fiscal-year-end adjusting journal entry for future returns and allowances related to sales and cost of sales.
a. June 30
Dr Sales returns and allowances $1,840
Cr Sales refund payable $1,840
($92,000 × 2%)
(To record future returns and allowances related to sales)
b. June 30
Dr Inventory returns estimated $640
Cr Cost of goods sold $640
($32,000 × 2%)
(To record cost of sales)
a.To record expected sales to be refunded ($92,000 × 2%)
To record expected sales to be refunded= $1,840
b. To record expected cost of returns= ($32,000 × 2%)
To record expected cost of returns = $640
A 3-year bond has an 8.0% coupon rate and a $1,000 face value. If the yield to maturity on the bond is 10%, calculate the price of the bond assuming that the bond makes semiannual coupon payments.
Answer:
$738.68
Explanation:
the price of the bond is $738.68.
A US Treasury is quoted at $137.111 based on $100 par. Today is 12/31/2020. Assume that transaction date and settlement date is the same. The coupon rate is 8%. The bond has 30-year maturity. What is the yield-to-maturity
Answer: 5.46%
Explanation:
You can use excel to solve for this.
Number of periods = 30
Coupon = Payment = 8% * 100 = $8
PV = $137.11
FV = $100 par value
Do this and the YTM would be: 5.46%
This makes sense because the bond is trading at a premium which means that the YTM is less than the coupon rate.
Calculate the end of the year cash balance based on the information below:
Beginning of the year cash balance 1,600
Revenue 1,200
Net income 450
Depreciation 100
Negative changes in operating assets and liabilities 60
Acquisitions of PP 300
Dividends paid in the current year 110
Increase in long-term debt 500
Answer: $2,180
Explanation:
Net income is already derived from revenue so adding revenue would be double counting.
Depreciation is a non cash expense so should be added back to cash holdings.
Negative changes in operating assets and liabilities reduces cash.
Acquisitions of Property and Plants reduces cash
Dividends also reduce cash
Increase in debt increases cash.
Cash balance is therefore:
= Beginning of year cash + Net income + Depreciation + Increase in long-term debt - Negative changes in operating assets and liabilities - Acquisitions of PP - Dividends paid in current year
= 1,600 + 450 + 100 + 500 - 60 - 300 - 110
= $2,180
Net income is derived from revenue so adding revenue give double counting
Depreciation is a non cash expense so should be added back to cash holdings
Negative changes in operating assets and liabilities reduces cash
Acquisitions of Property and Plants reduces cash
Dividends reduce cash
Increase in debt increases cash
Cash balance based on the information is:
= Beginning of year cash + Net income + Depreciation + Increase in long-term debt - Negative changes in operating assets and liabilities - Acquisitions of PP - Dividends paid in current year
= 1,600 + 450 + 100 + 500 - 60 - 300 - 110
= 2,180
What are Operating Assets?Operating assets are those assets acquired for use in the conduct of the ongoing operations of a business. This means assets that are needed to generate revenue.
Examples of operating assets are cash, prepaid expenses, accounts receivable, inventory, and fixed assets. If there are recognized intangible assets, such as technology licenses needed to manufacture goods, these should also be considered operating assets.
Assets not considered to be operating assets are those used for long-term investment purposes, such as marketable securities.
Assets no longer used for operations, such as assets held for sale, are also not considered to be operating assets.
Further, a non-cash asset that is held for investment purposes, such as an investment property, is not considered an operating asset.
What is Liability?A liability is something a person or company owes, usually a sum of money.
Liabilities are settled over time through the transfer of economic benefits including money, goods, or services.
Liability is Recorded on the right side of the balance sheet, liabilities include loans, accounts payable, mortgages, deferred revenues, bonds, warranties, and accrued expenses.
Liabilities can be contrasted with assets.
Liabilities refer to things that you owe or have borrowed; assets are things that you own or are owed.
To learn more about Operating Asset here
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In which one of the following circumstances should a company's managers seriously consider modifying their strategy to strongly differentiate the company's branded footwear from the offerings of rival companies and achieve a competitive advantage based on a wide selection of 450-500 models/styles and "high" S/Q ratings?
a) When one or more rivals produce and market branded footwear with the same (or higher) number of models/styles that the company is offering to the buyers of athletic footwear and also have below-average retail prices in the Internet segment and below-average wholesale prices in the Wholesale segment
b) When many rival companies are spending heavily on retailer support and search engine advertising
c) When one or more rivals also produce and market branded footwear having much the same (or higher) S/Q ratings and these rivals are offering higher mail-in rebates and delivering orders for branded footwear to footwear retailers in 1-2 weeks
d) When the company is struggling to achieve the sales volumes needed to meet or beat the five investor-expected performance targets because the global marketplace for branded footwear is overcrowded with companies locked in a fierce competitive battle to sell 450- 500 models of branded footwear with high S/Q ratings at premium prices to the same comparatively narrow high-end buyer segment
e) When the company's cost per branded pair sold is above the industry average in all four geographic regions
Answer:
The circumstance in which a company's managers should seriously consider modifying their strategy to strongly differentiate the company's branded footwear from the offerings of rival companies and achieve a competitive advantage based on a wide selection of 450-500 models/styles and "high" S/Q ratings is:
c) When one or more rivals also produce and market branded footwear having much the same (or higher) S/Q ratings and these rivals are offering higher mail-in rebates and delivering orders for branded footwear to footwear retailers in 1-2 weeks.
Explanation:
S/Q ratings are Athletic Footwear Styling and Quality ratings. The ratings are championed by a consumer group, which undertakes to rate the styling and quality of the footwear of all footwear producers by assigning a styling-quality or S/Q rating of 0 to 10 stars to each company's branded footwear offerings. If the company has the same rating with a competitor and the competitor employs some strategic moves to better its competitiveness, then the company must change its differentiation strategy.
The company manager considers modifying the strategy when there has been rival with better or same footwear quality and delivery as yours. Thus option C is correct.
The S/Q rating has been the styling and quality rating that has been assigned to the footwear by the consumer groups. The strategy for the selling of an product has been improvised in the market when there has been the presence of a competitor with the same strategy as yours.
Thus company managers seriously consider modifying their strategy when one or more rivals also produce and market branded footwear having much the same (or higher) S/Q ratings and these rivals are offering higher mail-in rebates and delivering orders for branded footwear to footwear retailers in 1-2 weeks. Thus option C is correct.
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https://brainly.com/question/14033301
Consider the following projects. Project CO C1 C2 СЗ C4 C5 A -1,000 +1,000 0 0 0 10 B -2,000 |+1,000 |+1,000 +4,000 +1,000 +1,000 C -3,000 |+1,000 |+1,000 0 +1,000 +1,000 Assume that this firm's beta= 1.5 The expected market return is 12%. The risk free rate is 2.5%. This company can borrow debt at 5.2%. The firm has $5 billion in debt. It has 6 billion shares outstanding at $3 price/shr. The corporate tax rate (Tc) = 21% Question: What is the NPV of project B?a) $3,458
b) -$128
c) -$122
d) $2,158
Answer:
a) $3,458
Explanation:
The net present value is the present value of future cash flows discounted at the firm's weighted average cost of capital(which is the appropriate discount rate in this case) minus the initial investment outlay
cost of equity=risk-free rate+beta*(expected market return-risk free rate)
cost of equity=2.5%+1.5*(12%-2.5%)
cost of equity=16.75%
after-tax cost of debt=5.2%*(1-21%)
after-tax cost of debt=4.11%
WACC=(weight of equity*cost of equity)+(weight of debt*after-tax cost of debt)
weight of equity=value of equity/(value of equity+value of debt)
value of equity=6 billion*$3=$18 billion
value of debt=$5 billion
weight of equity=$18 billion/($18 billion+$5 billion)
weight of equity=78.26%
weight of debt=1-78.26%
weight of debt=21.74%
WACC=(78.26%*16.75%)+(21.74%*4.11%)
WACC=14.00%
present value of a future cash flow=future cash flow/(1+WACC)^n
n is the year in which the cash flow is expected, it is 1 for year 1 cash flow, 2 for year 2 cash flow ,and so on
NPV of project B=1000/(1+14%)^1+1000/(1+14%)^2++4000/(1+14%)^3+1000/(1+14%)^4+1000/(1+14%)^5-2000
NPV of project B=$ 3,458.00
