Answer: Closest answer is: FVA $4,000 x [(1.04-1)/0.04
Explanation:
Because the deposit is constant and occurs every period, it is an annuity.
The formula for the future value of an annuity is:
= Annuity * ( (1 + rate)^number of periods - 1) / rate
Correct formula is therefore:
= 4,000 * ( ( 1 + 4%)⁵ - 1) 4%+
= 4,000 * ( 1.04⁵ - 1 ) / 0.04
Closest answer is: FVA $4,000 x [(1.04-1)/0.04
MLX has annual sales of $320 million per year and has calculated the collection float to be 12 days. If MLX is currently paying 9.35% on its line of credit, what amount of interest expense could be saved if the collection float is reduced by 3 days? (Assume 365 days per year.
Answer:
The right solution is "$245,917.81".
Explanation:
According to the question,
Interest,
= 9.35%
Sales,
= 320000000
Float reduction,
= 3
Now,
Saving in interest will be:
= [tex]Sales\times Interest\times \frac{Float \ reduction}{365}[/tex]
By substituting the values, we get
= [tex]320000000\times 9.35 \ percent\times \frac{3}{365}[/tex]
= [tex]245,917.81[/tex] ($)
Year 1 Year 2 EBITDA $7,650 $9,150 Total value of equity $76,500 $82,500 Total firm value $99,450 $132,000 What is value of the entity multiple of Company X in Year 1?
Answer:
$5.59
Explanation:
Calculation to determine the value of the entity multiple of Company X in Year 1
Using this formula
Entity multiple=Market value / EBITDA
Let plug in the formula
Entity multiple=$99,450/$17800
Entity multiple=$5.59
Therefore the value of the entity multiple of Company X in Year 1 will be $5.59
a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion
Answer: $2.5 billion
Explanation:
You need to first calculate the multiplier.
The multiplier is the amount that shows the effect of an increase in government spending on the aggregate demand of a country.
It is calculated as:
= 1 / ( 1 - MPC)
= 1 / ( 1 - 0.9)
= 10
Increase in aggregate demand = Government spending * multiplier
25 billion = G * 10
G = 25 billion / 10
= $2.5 billion
For Sanborn Co., sales is $1,000,000, fixed expenses are $300,000, and the contribution margin per unit is $60. What is the break-even point? g
Answer:
Break-even point in units= 5,000
Explanation:
Giving the following information:
Sales= $1,000,000
Fixed expenses= $300,000
Contribution margin per unit= $60
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 300,000 / 60
Break-even point in units= 5,000
MSI is considering eliminating a product from its ToddleTown Tours collection. This collection is aimed at children one to three years of age and includes "tours" of a hypothetical town. Two products, The Pet Store Parade and The Grocery Getaway, have impressive sales. However, sales for the third CD in the collection, The Post Office Polka, have lagged the others. Several other CDs are planned for this collection, but none is ready for production.
MSI's information related to the Toddle Town Tours collection follows: Segmented Income Statement for MSI's Toddle Town Tours Product Lines Post Office Parade Getaway _Polka Pet Store Grocery Total Sales revenue Variable costs $110,000 $105,000 $31,000 $246,000 43,000 28,000 118,000 $ 63,000 S 62,000 $ 3,000 $128,000 2,800 16,700 $ 55,800 S 55,300 $ 200 $ 111,300 1,550 12,300 47,000 1000 4 Contribution margin Segment margin Net operating income (loss) Less: Direct Fixed costs 7,200 006,700 Less: Common fixed costs .505350 99,000 50,300 $ 50,050S (1.350) S 5,500 0 $ 50,050 $ (1,350) $99,000 5,250 Allocated based on total sales dollars MSI has determined that elimination of the Post Office Polka (POP) program would not impact sales of the other two items. The remaining fixed overhead currently allocated to the POP product would be redistributed to the remaining two products Required 1. Calculate the incremental effect on profit if the POP product is eliminated Effect on Profit 2. Should MSI drop the POP product?
Answer:
MSI
1. Incremental effect on profit if the POP product is eliminated is:
Profit will be reduced by $200 ($99,000 - $98,800).
2. Yes. MSI should drop the POP product. POP product is like a dog in the BCG matrix.
Explanation:
a) Data and Calculations:
Segmented Income Statement
for MSI's Toddle Town Tours Product Lines
Pet Store Grocery Post Office Total
Parade Getaway Polka Firm
Total Sales revenue $110,000 $105,000 $31,000 $246,000
Variable costs 47,000 43,000 28,000 118,000
Contribution margin $ 63,000 $ 62,000 $ 3,000 $128,000
Less: Direct Fixed costs 7,200 6,700 2,800 16,700
Segment margin $ 55,800 $ 55,300 $ 200 $ 111,300
Less: Common fixed costs 5,500 5,250 1,550 12,300
Net operating income (loss) $50,300 $ 50,050 $ (1,350) $99,000
Segmented Income Statement after POP Elimination
for MSI's Toddle Town Tours Product Lines
Pet Store Grocery Total
Parade Getaway Firm
Total Sales revenue $110,000 $105,000 $215,000
Variable costs 47,000 43,000 90,000
Contribution margin $ 63,000 $ 62,000 $125,000
Less: Direct Fixed costs 7,200 6,700 13,900
Segment margin $ 55,800 $ 55,300 $ 111,100
Less: Common fixed costs 6,275 6,025 12,300
Net operating income (loss) $ 49,525 $ 49,275 $98,800
1. Incremental effect on profit if the POP product is eliminated is:
Profit will be reduced by $200 ($99,000 - $98,800), which is the difference between the allocated fixed cost to POP ($1,550) and its operating loss ($1,350).
2. Yes. MSI should drop the POP product. POP product is like a dog in the BCG matrix.
What IHRM activities would be pertinent to the sending, by Médecins Sans Frontieres, of a medical team into a country such as Bangladesh?
Answer:
It is the responsibility of the HR department to enable employees to perform a job with skill, safety and ideal conditions.
Therefore, in a Médecins Sans Frontières program with the sending of a medical team to a country like Bangladesh, it would be the competence of the responsible company's HR, to prepare its team to be received in the place with good housing, food and security conditions. Enabling and training the medical team to deal with the work and demands of a country like Bangladesh, which, being a country with a lot of social inequality and conditions of poverty, has particular challenges in relation to health, which the doctors sent should be well prepared to take on that job and the risks involved.
Ethics Learning to recognize ethical issues is the most important step in understanding business ethics.
a. True
b. False
Answer:
A) True
Explanation:
Ethical learning can be regarded as educational proposal that has the purpose of preparing students as regards their future working life , through rendering of help to acquire skills that will give them enablement to perform their professions with responsibility as well as autonomy.
Business ethics can be regarded as study of needed business policies as well as business practices. Subject needed to learn could involves could be corporate social responsibility,corporate governance and others. It should be noted that Ethics Learning to recognize ethical issues is the most important step in understanding business ethics.
LB Limited is a price taker in a perfectly competitive market. It produces and sells canned spices. The following information is available for the company: Current output 5000 units Current market price $3 Total cost $25,000 Marginal cost $3 Total variable cost $20,000 What is the best action for LB limited? a) Operating in the short run and in the long run b) Increase output in the short run and in the long run c) Shut down in the short run and exit in the long run d) Shut down in the short run and produce in the long run e) Reduce output in the short run and increase output in the long run
Answer:
The answer is "Option c".
Explanation:
In this question c, the short-term Shut - down as well as the long-term departure. Since overall revenues are lower than the entire variable cost, it means that a producer is not capable of covering the variable cost, thus stopping the output in the short term and the business leaving it market on account of losses inside the long term.
Explain the nature of the exchange-rate risk for each of the following, from the perspective of the U.S. firm or person. In your answer, include whether each is a long or short position in foreign currency.
a. A small U.S. firm sold experimental computer components to a Japanese firm, and it will receive payment of 1 million yen in 60 days.
b. An American college student receives a birthday gift of Japanese government bonds worth 10 million yen, and the bonds mature in 60 days.
c. A U.S. firm must repay a yen loan, principal plus interest totaling 100 million yen, coming due in 60 days.
Answer:
a. U.S. firm has long position in yen since it has asset in yen.
b. An American student has long position in yen since it has asset of bonds in yen.
c. U.S. firm has liability position in yen, therefore it is short position.
Explanation:
a. The payment is to be received in next 60 days which means there is a risk of yen depreciation and then company will receive lower dollars. The company should hedge its exchange rate risk by selling yen now and buying dollars later.
b. The gift received in the form of bonds will mature in 60 days. There is uncertainty in dollar rate, if dollar appreciates against yen then student will receive less yen.
c. The dollar rate is unpredictable for yen in next 60 days. If yen appreciate then dollar will depreciate against yen and therefore amount of loan repayment will increase.
Suppose that Michelle buys a cappuccino from Paul's Cafe and Bakery for $4.75. Michelle was willing to pay up to $6.75 for the cappuccino and Paul's Cafe and Bakery was willing to accept S1.25 for the cappuccino. Based on this information, answer the questions below.
Michelle's consumer surplus is equal to: _______
Paul's Bakery's producer surplus is equal to:__________
Answer:
$2
$3.50
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
$6.75 - $4.75 = $2
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
Producer surplus = price – least price the seller is willing to accept
$4.75 - $1.25 = $3.5
Finley Company
End-of-Period Spreadsheet
For the Year Ended December 31
Adjusted Trial Balance Income Statement Balance Sheet
Account Title Debit Credit Debit Credit Debit Credit
Cash 48,000 48,000
Accounts
Receivable 18,000 18,000
Supplies 6,000 6,000
Equipment 57,000 57,000
Accumulated Depreciation 18,000 18,000
Accounts Payable 25,000 25,000
Wages Payable 6,000 6,000
Common Stock 30,000 30,000
Retained Earnings 3,000 3,000
Dividends 3,000 3,000
Fees Earned 155,000 155,000
Wages Expense 63,000 63,000
Rent Expense 27,000 27,000
Depreciation
Expense 15,000 15,000
Totals 237,000 237,000 105,000 155,000 132,000 82,000
Net Income (Loss) 50,000 50,000
155,000 155,000 132,000 132,000
The entry to close Dividends would be:_____.
a. debit Retained Earnings, $3,000; credit Common Stock, $3,000.
b. debit Common Stock, $3,000; credit Retained Earnings, $3,000.
c. debit Dividends, $3,000; credit Retained Earnings, $3,000.
d. debit Retained Earnings, $3,000; credit Dividends, $3,000.
Answer:
d. debit Retained Earnings, $3,000; credit Dividends, $3,000.
Explanation:
The journal entry to close the dividend account should be
Retained earnings Dr $3,000
To Dividend $3,000
(being the closing of the dividend account is recorded)
here the retained earning is debited as it decreased the stockholder equity and dividend is credited as it is closed
(Select all that apply) Maria is researching social media usage in her company for a marketing meeting later in the month. What should she consider as she chooses sources to read and/or include
Answer:
Hello,
this question above appears to be missing options from which one is to select from. In the absence of those, an alternative approach would suffice.
When considering sources for research, Maria should take she must consider sources that meet the following requirements:
DepthObjectivityCurrency of SourceAuthorityPurposeExplanation:
Depth: A source with just a simple cursory overview may not suffice. It is pertinent to elect a source that treats the subject matter in sufficient depth and which uses data to support its position on the topic she is researching Objectivity: If any source takes a biased position on the topic Maria is researching, then it is not a good source. Maria wants to ensure that the author of the source has not taken a position that does not have a balanced view. If any source is not properly cited it should not count.The currency of source: Simple logic requires that a source that is more up-to-date should be preferred above one that is dated. The rule of thumb requires that where possible, sources cited should not be older than 3 years.Authoritative: The more qualified an Author is in the field under consideration, the more reputable the company it works for, the more authoritative that source is considered to bePurpose: Sometimes a text may contain several sub-topics which build up to buttress its primary purpose. Sometimes, these sub-topics may deviate slightly from the main topic. To cite from the sub-topics because it aligns with her work would be a mistake on Maria's part. For example, if she cites from a research proposal whose main topic is Photo Journalism in the Wild West, but which references or the importance of social media in one of its paragraphs, that citation would not be considered adequate because the purpose of the main body is not specific to her work.Cheers
Gilberto manages a grocery store in a country experiencing a high rate of inflation. To keep up with inflation, he spends a lot of time every day updating the prices, printing new price tags, and sending out newspaper inserts advertising the new prices. His employees regularly deal with customer annoyance over the frequent price changes. This is an example of the of inflation.
Answer:
Menu Costs
Explanation:
From the question we are informed about Gilberto who manages a grocery store in a country experiencing a high rate of inflation. To keep up with inflation, he spends a lot of time every day updating the prices, printing new price tags, and sending out newspaper inserts advertising the new prices. His employees regularly deal with customer annoyance over the frequent price changes. This case is an example of the of Menu Costs inflation.
In domain of economics, menu cost can be regarded as the cost to a firm that results due to changing its prices. When there is high inflation, firms needs to often make a change to their prices ,so they can keep up with economy-wide changes. The name arised out of the cost of a printing new menus of a restaurants , but it is used by economists when they are generally referring to the costs of changing nominal prices
.
Justin builds fences for a living. Justin's out-of-pocket expenses (for wood, paint, etc.) plus the value that he places on his own time amount to his a. profit. b. producer surplus. c. cost of building fences.
Answer:
c. Cost of building fences.
Explanation:
The cost of production encompasses the money spend as well as the time to produce a commodity. For example, if a person spends $15 to make a juice cup and invest 1 hour to make so the total cost of production is $15 and the time invested by the producer. Thus, option "c" is correct.
Ahngram Corp. has 1,000 defective units of a product that cost $3.70 per unit in direct costs and $7.20 per unit in indirect cost when produced last year. The units can be sold as scrap for $4.70 per unit or reworked at an additional cost of $3.30 and sold at full price of $14.10. The incremental net income (loss) from the choice of reworking the units would be:
Answer:
Reowrk:
Effect on income= $10,800 increase
Explanation:
Giving the following information:
Number of units= 1,000
Sell as-is:
Selling price= $4.7
Rework:
Incremental cost= $3.3
Selling price= $14.1
We need to calculate the effect on the income of both options:
Sell as-is:
Effect on income= 4.7*1,000= $47,000 increase
Rework:
Effect on income= 1,000*(14.1 - 3.3)
Effect on income= $10,800 increase
Ideally, a profit oriented firm desires to denominate bonds in a currency that: ________.
a. Exhibits a low interest rate and is expected to depreciate.
b. Exhibits a high interest rate and is expected to depreciate.
c. Exhibits a low interest rate and is expected to appreciate.
d. Exhibits a high interest rate and is expected to appreciate.
Answer: exhibits a low interest rate and is expected to depreciate.
Explanation:
Bonds are the debt securities which are issued by the governments or corporations, and usually have a lower risk and reward than stocks.
A profit oriented firm desires to denominate bonds in a currency that exhibits a low interest rate and is expected to depreciate.
In order to use moving averages to forecast a time series, the first step is to select the order k, the number of time series values to be included in the moving average.
a) true
b) false
Riverbed Corp. enters into a contract with a customer to build an apartment building for $1,013,300. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $152,100 to be paid if the building is ready for rental beginning August 1, 2021. The bonus is reduced by $50,700 each week that completion is delayed. Riverbed commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:
Completed by Probability
August 1, 2021 70%
August 8, 2021 20
August 15, 2021 5
After August 15, 2021 5
Required:
Determine the transaction price for this contract.
Answer: $1,142,585
Explanation:
The transaction price is the contract price in addition to the expected value of the performance bonuses based on its probabilities.
= Contract price + Expected value of bonus
Bonus is to reduce by $50,700 for every week so:
Expected value of bonus = (152,100 * 70%) + ( (152,700 - 50,700) * 20%) + ( (152,700 - 50,700 - 50,700) * 5%) + ( (152,700 - 50,700 - 50,700 - 50,700) * 5%)
= $129,285
Transaction price = 1,013,300 + 129,285
= $1,142,585
Refer to Exhibit 26-5. Assume the firm is a factor price taker and that the price of a unit of labor is constant at $1,200. The firm should hire __________ of labor.
Answer: 3 units of labor
Explanation:
The marginal revenue product will be:
- 1 labor unit
Marginal product = 500
Marginal revenue product = 500 × 5 = 2500
- 2 labor unit
Marginal product = 400
Marginal revenue product = 400 × 5 = 2000
- 3 labor unit
Marginal product = 250
Marginal revenue product = 250 × 5 = 1250
- 4 labor unit
Marginal product = 200
Marginal revenue product = 200 × 5 = 1000
- 5 labor unit
Marginal product = 200
Marginal revenue product = 200 × 5 = 1000
Therefore, till the third unit of labor, we can infer that the marginal revenue product is more than the marginal revenue cost. The 4th and 5th unit of labor will become costly to hire more labor.
Chik Chik Company showed the following balances at the end of its first year: Cash $ 3,000 Prepaid insurance 4,700 Accounts receivable 3,500 Accounts payable 2,800 Notes payable 4,200 Common stock 1,400 Dividends 700 Revenues 22,000 Expenses 17,500 What did Chik Chik Company show as total credits on its trial balance
Answer: $30,400
Explanation:
Accounts with credit balances are revenue, liabilities and stock or equity.
The credit balances above are:
Accounts payable, Notes payable, common stock, revenues,= 2,800 + 4,200 + 1,400 + 22,000
= $30,400
You are given the following data Stock A Expected return 8.00% Standard deviation 23.00% Stock B Expected return 7.50% Standard deviation 33.00% The correlation of Stock A and Stock B is 0.05. What is the variance of risky portfolio P with 43% in Stock A and the rest in Stock B
Answer:
Variance of risky portfolio P = 4.61%
Explanation:
WA = Weight of stock A = 43%, or 0.43
WB = Weight of stock B = 1 - 0.43 = 0.57
SA = Standard deviation of stock A = 23%, or 0.23
SB = Standard deviation of stock B = 33%, or 0.33
Cab = Correlation of Stock A and Stock B = 0.05
Therefore, we have:
Variance of risky portfolio P = (WA^2 * SA^2) + (WB^2 * SB^2) + (WA * SA * WB * SB * Cab) = (0.43^2 * 0.23^2) + (0.57^2 * 0.33^2) + (0.43 * 0.23 * 0.57 * 0.33 * 0.05) = 0.0461, or 4.61%
Using the probability approach to determine an inventory safety stock and wanting to be 95 percent sure of covering inventory demand, which of the following is the number of standard deviations necessary to have the 95 percent service probability assured?A) 1.28B) 1.64C) 1.96D) 2.00E) 2.18
Answer:
B) 1.64
Explanation:
Given that there is 95% service probability i.e. assured
So here the company applied the approach in normally that sets the probability for not stocking out the 95 percent
So it would have the approx 1.64 standard deviation with respect to the safety stock
Therefore the option c is correct
Employees are quitting at an alarming rate from a classy multi-star hotel. What can the HR team there do to find out the reason for quitting and retain good employees?
The Human resources team can interact with some of the staffs to know the problem.
Who is an employee?An employee is someone who is working for an organization or an individual to gets paid at the end of the job either as wages or salary.
In case of any problem, Human resources team can interact with some of the staffs to know the problem.
Learn more on employee below
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Answer: I believe the answer is C
Explanation:
Profit margin is synonymous with the term _______ and tells whether or not total profit will be positive.
Answer: Average profit
Explanation:
Both average profit and profit margin show the percentage of profit that a company can expect to receive from $1 worth of sales. It is calculated by dividing the profits by the sales figure,
If sales are $10 and profits are $3, the profit margin would be:
= 3/10
= 30%
This means that for every $1 of sales, there is $0.30 in profit. This method shows us whether the total profit will be negative or positive by showing us individual product profit.
When the United States sends money to Japan to help earthquake survivors, in which account is this transaction recorded
Answer:
When the United States sends money to Japan to help earthquake survivors, in which account is this transaction recorded? o credit item in that country's balance of payments.
When companies use automated production processes, they tend to condense the three manufacturing costs into two categories. These categories are: direct and indirect materials. direct costs and indirect materials. indirect materials and conversion costs. direct materials and conversion costs.
Answer:
direct materials and conversion costs.
Explanation:
When companies use automated production processes, they tend to condense the three manufacturing costs into two categories which are direct materials and conversion costs.
This is because Automation does conversion on the Direct Materials which are visible and can be traced to product being manufactured.
A contra account will not:_____.
a. be listed immediately after its related account.
b. be potentially classified as a contra-assets or contra-liabilities.
c. always has a normal debit balance.
d. has a normal balance which is the opposite of its related account.
Answer:
a
Explanation:
first one is the best answer
Emphasis on the quantitative aspects of products sold (ie: portion size, price) and services offered (the time it takes to get the product) is called
Answer:
Calculability
Explanation:
A transaction can be defined as a business process which typically involves the interchange of goods (products), financial assets, services and money between a seller and a buyer.
A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.
A service can be defined as an intangible (immaterial), non-physical activities, satisfactions or benefits that are offered for sale by a business service or provided to accompany the sales of a product. Thus, it's an action that involves offering something to a service taker or customer in return for an amount of money as payment.
In Business management, calculability is the emphasis of a business firm on the quantitative aspects (portions, price, size) of products sold and services offered (the time it takes the consumer to get the product). Thus, calculability avails a business firm the opportunity to emphasize on the quantity of product sold rather than a qualitative factor.
The name which is given to the emphasis on the quantitative aspects of products sold (ie: portion size, price) and services offered (the time it takes to get the product) is called
Calculability
Calculability has to do with the ability to make calculations on the goods which are transacted by a company at any given time and how the services which were offered such as time taken to get the product.
With this in mind, we know that in a capitalist state, the main aim of any business is to make profit and calculability is used to show the quantitative aspects of the products which are sold and the services offered to determine profit.
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Last year, a Walmart store in Nebraska had annual sales of $11,390,000, with an average dollar stock amount for the year of $2,149,000. What was the stock turnover for the year at the store in Nebraska? How would the store manager determine if this was a "good" rate of turnover?
Answer:
See below
Explanation:
1. With regards to the information above, stock turnover is computed as cost of goods sold divided by average stock.
Stock turnover = Cost of goods sold / Average stock
Cost of goods sold/Cost of sales = $11,390,000
Average stock = $2,149,000
Then,
Stock turnover = $11,390,000 / $2,149,000
Stock turnover = 5.30 times
Therefore, the stock turnover for the year at the store in Nebraska is 5.30 times
2. The store manager would determine if it was a good rate of turnover if it increases compare to previous stock turnover. Rate of turnover shows the rate or number of times at which a company can sell and replace its stock of goods within a year.
To select a strategy in a two-person, zero-sum game, Player A follows a ________ procedure and Player B follows a ________ procedure.
Answer:
None of these is correct
Explanation:
None of these is correct. The correct answer is that; it should be minimax
