Answer:
A. No gain or loss
B. Carryover; $2,338,000
Explanation:
A. Based on the information given the Corporation’s RECOGNIZED NO GAIN OR LOSS on the liquidation reason been that under SECTION 332 GOOSE'S BASIS IN THE SWIFT STOCK OF THE AMOUNT OF $3,340,000 IS REDUCED TO ZERO AMOUNT.
B. Based on the information given the Corporation’s BASIS IN THE ASSETS RECEIVED IN LIQUIDATION will be CARRYOVER BASIS of the amount of $2,338,000.
Tom Scott is the owner, president, and primary salesperson for Scott Manufacturing. Because of this, the company's profits are driven by the amount of work Tom does. If he works 40 hours each week, the company's EBIT will be $590,000 per year; if he works a 50-hour week, the company's EBIT will be $705,000 per year. The company is currently worth $3.6 million. The company needs a cash infusion of $1.7 million, and it can issue equity or issue debt with an interest rate of 10 percent. Assume there are no corporate taxes.
Required:
a. What are the cash flows to Tom under each scenario?
b. Under which form of financing is Tom likely to work harder?
Solution :
a). The company requires a cash infusion of amount $ 1.70 million. If the company issues any debt, annual interest payments is :
Interest = $ 1,700,000
Interest = $ 170,000
The cash flow to the owner is EBIT - (the interest payment) :
40 hour week cash flow = $ 590,000 - $ 170,000
= $ 420,000
50 hour cash flow = $ 705,000 x 67.92%
= $478,836
b). Tom will be working harder under the debt issue as the cash flow will be higher. He will also gain more under this case of financing since the payments to the bond holders are fixed. Under this equity issue, the new investors share the proportionality in his hand work, which will reduce the propensity for his additional work.
Materials Variances Assume that Pearle Vision uses standard costs to control the materials in its made-to-order sunglasses. The standards call for 2 ounces of material for each pair of lenses. The standard cost per ounce of material is $16.25. During July, the Santa Clara location produced 5,200 pairs of sunglasses and used 9,800 ounces of materials. The cost of the materials during July was $17.00 per ounce, and there were no beginning or ending inventories. Required a. Determine the flexible budget materials cost for the completion of the 5,200 pairs of glasses.
Answer:
Direct material flexible budget= $159,250
Explanation:
Giving the following information:
The standard cost per ounce of material is $16.25.
Actual quantity= 9,800 ounces
The flexible budget employs the standard cost for the actual quantity:
Direct material flexible budget= 16.25*9,800
Direct material flexible budget= $159,250
Dexter Industries purchased packaging equipment on January 8 for $422,400. The equipment was expected to have a useful life of four years, or 7,600 operating hours, and a residual value of $34,800. The equipment was used for 2,660 hours during Year 1, 1,596 hours in Year 2, 2,128 hours in Year 3, and 1,216 hours in Year 4.
Required:
Determine the amount of depreciation expense for the three years ending December 31, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method.
Answer:
Dexter Industries
Depreciation Expenses for the three years ending December 31:
a) Straight line method b) Units-of-activity method c) Double-Declining
Year 1 $96,900 $135,600 $211,200
Year 2 $96,900 $81,396 $105,600
Year 3 $96,900 $108,528 $52,800
Explanation:
a) Data and Calculations:
Cost of equipment purchased on January 8 = $422,400
Expected useful life = 4 years or 7,600 operating hours
Residual value = $34,800
Depreciable amount = $387,600 ($422,400 - $34,800)
Straight-line Depreciation Expense per year = $96,900 ($387,600/4)
Units-of-activity method Depreciation Expenses:
Depreciation rate per hour = $51 ($387,600/7,600)
Period Hours Depreciation Expense
Year 1 2,660 $135,600 (2,660 * $51)
Year 2 1,596 $81,396 (1,596 * $51)
Year 3 2,128 $108,528 (2,128 * $51)
Year 4 1,216 $62,016 (1,216 * $51)
Double-declining-balance method:
Depreciation rate per year = 50% (100%/4 * 2)
Year 1 = $211,200 ($422,400 * 50%)
Year 2 = $105,600 ($211,200 * 50%)
Year 3 = $52,800 ($105,600 * 50%)
Year 4 = $18,000 ($52,800 - $34,800)
On the first day of its fiscal year, Chin Company issued $26,200,000 of five-year, 6% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 7%, resulting in Chin receiving cash of $25,110,559.
a. Journalize the entries to record the following:
1. Issuance of the bonds.
2. First semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment. Round your answer to the nearest dollar.
3. Second semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment. Round your answer to the nearest dollar.
b. Determine the amount of the bond interest expense for the first year.
c. Explain why the company was able to issue the bonds for only $9,594,415 rather than for the face amount of $10,000,000.
Solution :
a. 1). Preparing the journal entry to record the issuance of bonds.
Date Account title Debit ($) Credit ($)
Jan 1 Cash 25,110,559
Discount on bonds payable 1,089,441
Bonds payable 26,200,000
a. 2). Preparing the journal entry to record the first semi annual interest payment.
Date Account title Debit ($) Credit ($)
Jun 30 Interest expense 390559
Discount on the bonds payable 108,945
Cash ($26,200,000 x 3%) 786,000
a.3). Preparing the journal entry to record the second semi-annually interest payment.
Date Account title Debit ($) Credit ($)
Dec 31 Interest expense 390,559
Discount on bonds payable 108,945
Cash 786,000
b). Determining the amount of bond interest expense for the 1st year.
Particulars Amount ($)
Interest expense ( 786,000 + 786,000 ) 1,572,000
Add : Discount amortized (108,945 + 108,945) 217,890
Interest expense (for the 1st year) 1,789,890
c). The company issued the bonds having face value of $26,200,000 for $25,110,559. That is the bonds are issued at a discount for $1,089,441. The bonds are issued at a discount as the market interest of the bonds are higher than the bonds coupon rate.
Darkover Inc., as part of its strategic planning process, is considering making some policy changes. What effect (i.e. Increase, Decrease, No Effect) would each the following changes have on Darkover's Net Cash Flow from Operating Activities? Assume that in each case, the change only affects the account or accounts mentioned (i.e. all other accounts are not changed by the action).
Question Completion:
_____(a) Increase investment in new plant and equipment.
_____(b)Change the collections policy to insure that receivables are collected sooner.
_____(c)Change inventory policy to increase the amount of raw materials kept on hand (work in process and finished goods inventory will remain unchanged).
_____(d)Sell long term bonds and use the proceeds to reduce notes payable
._____(e) Begin paying all employees every week instead of every two week, effectively decreasing accruals.
_____(f)Change accounts payable policy to pay bills in 20 days instead of 10 days.
Answer:
Darkover Inc.
Effects of Changes on Darkover's Net Cash Flow from Operating Activities:
_No Effect____(a) Increase investment in new plant and equipment.
Increase_____(b) Change the collections policy to insure that receivables are collected sooner.
Decrease_____(c) Change inventory policy to increase the amount of raw materials kept on hand (work in process and finished goods inventory will remain unchanged).
Decrease_____(d) Sell long term bonds and use the proceeds to reduce notes payable
Decrease_____(e) Begin paying all employees every week instead of every two week, effectively decreasing accruals.
Increase_____(f) Change accounts payable policy to pay bills in 20 days instead of 10 days.
Explanation:
Darkover's net cash flow from operating activities is the result of accumulating the cash inflows and outflows from its operating activities. Operating activities are the normal activities that Darkover carries out from which it earns its revenues and incurs related expenses. They are the day-to-day activities through which the mission of the entity is carried out.
Suppose that the total value of dividends to be paid by companies in the Narnian stock market index is $100 billion. Investors expect dividends to grow over the long term by 5% annually, and they require a 10% return. Now a collapse in the economy leads investors to revise their growth estimate down to 4%. By how much should market values change
Answer:
The correct answer is "16.67%".
Explanation:
Given:
Dividend,
= $100 billion
Rate of return,
= 10%
= 0.10
Growth rate,
= 5%
= 0.05
Now,
Market value will be:
= [tex]\frac{Dividend}{Rate \ of\ return-Growth \ rate}[/tex]
= [tex]\frac{100}{0.10-0.05}[/tex]
= [tex]\frac{100}{0.05}[/tex]
= [tex]2000 \ Billion[/tex] ($)
After collapse,
The market value will be:
= [tex]\frac{100}{(.10-.04)}[/tex]
= [tex]\frac{100}{.06}[/tex]
= [tex]1666.67[/tex] ($)
Change in market value will be:
= [tex]2000-1666.67[/tex]
= [tex]333.33 \ Billion[/tex] ($)
hence,
The percentage change in market value will be:
= [tex]\frac{333.33}{2000}[/tex]
= [tex]16.67[/tex]%
A firm currently produces 1000 units of output and has total costs of $15,000 and fixed cost of $3,000. What is the firm’s average variable costs?
Explanation:
Explanation: The formula is ATC = AFC + AVC. Use this formula. It will be useful for you
The owner of Artisanal Chips etc. produces three flavors of artisanal corn chips marketed at new college graduates — pumpkin (P), chipotle adobo (A) and basement (B). He has a limited amount of the three ingredients used to produce these chips available for his next production run: 1,000 ounces of salt, 2,000 ounces of maize, and 1,200 ounces of herbs. A bag of pumpkin chips requires 2 ounces of salt, 6 ounces of maize, and 1.75 ounces of herbs to produce; while a bag of chipotle-adobo chips requires 6 ounces of salt, 6 ounces of maize, and 5 ounces of herbs. A bag of basement chips requires 1.75 ounces of salt, 3.5 ounces of maize, and 1.5 ounces of herbs. Profits for a bag of basement chips are $0.40, for chipotle-adobo chips is $0.60, and for a bag of pumpkin chips $0.50.
For the production combination of 100 bags of each flavor of chips, which of the three resources is (are) not completely used?
a. salt and herbs only
b. salt and maize only
c. herbs maize and salt
d. maize only
Answer:
Artisanal Chips
For the production combination of 100 bags of each flavor of chips, the three resources are not completely used are:
c. herbs, maize, and salt
Explanation:
a) Data and Calculations:
Ingredients Ounces Usage per Bag
Pumpkin Chipotle Basement
Salt 1,000 2 6 1.75
Maize 2,000 6 6 3.5
Herbs 1,200 1.75 5 1.5
Basement Chipotle Pumpkin
Profits for a bag $0.40 $0.60 $0.50
Total ingredients required for 100 bags of each:
Resources Pumpkin Chipotle Basement Total Unused
Usage Resources
Salt 1,000 200 600 175 975 25 ounces
Maize 2,000 600 600 350 1,550 450 ounces
Herbs 1,200 175 500 150 825 375 ounces
The predetermined overhead rate is multiplied by the actual allocation base incurred by a job to find ______.
Answer:
overhead applied to the job.
Explanation:
The formula to determine the predetermined overhead rate is given below:
Predetermined overhead rate is
= Estimated manufacturing overhead ÷ estimated activity level
Now when the predetermined overhead rate calculated after that we multiplied the rate with the actual allocation base in order to determine the applied overhead to the job
Kinds of managers An example of a position that a team leader would hold is: vice president. department manager. group facilitator. divisional manager Using your knowledge of the different levels of management in organizations·indicate whether each statements most middle-level, top-level managers, or team leaders. el, to aaay to ist ere Statement Project managers and others who bring people together from various parts of the organization to perform a task are in this layer of management. Having titles like chief executive officer (CEO), president, chairperson, and director general, these managers report directly to the board of directors. These managers are responsible for guiding and coaching the employees who actually do the work of the organization Level Middle managers Top managers First-line managers
Answer:
a. A Team leader would be a group facilitator.
Team leaders are meant to coordinate the activities of small groups in a company to achieve certain short term targets. They are therefore most suited to be group facilitators.
b.
Project managers and others who bring people together from various parts of the organization to perform a task are in this layer of management. ⇒ MIDDLE MANAGERS
Middle level managers are in charge of departments and divisions and have the goal of achieving the mandate set by the Top management. They do so by bringing together various parts of the organization under a division and work to achieve the set goals.
Having titles like chief executive officer (CEO), president, chairperson, and director general, these managers report directly to the board of directors. ⇒ TOP LEVEL MANAGERS
Top level managers sit on top of the hierarchy of the entire organization and report directly to the Board of Directors. They include positions like the CEO, President, CFO, Director-General, etc. They set the overall strategic goals of the company.
These managers are responsible for guiding and coaching the employees who actually do the work of the organization ⇒ FIRST-LINE MANAGERS.
First-line managers are the closest to the employees and so supervise them to carry out the goals passed onto them by first level managers. They include positions like office managers and plant supervisors.
what type of occupation do you prefer to do any why
Answer:
a hands on occupation
Explanation:
I dont like sitting around
2. Write the importance of professional education
Answer:
The aim of education is to make a person intelligent enough to make decisions logically, knowledgeable enough to take up a right career path and skilled enough to be self-supportive.Getting a professional education is important for shaping your career to move towards a right direction.Professional education educates the new generation of professionals, expanding the frontiers of knowledge and reaching out in service to society. Professional education is increasingly being called upon to play a significant role in the administration of new programs within continuing and new structures.
Explanation:
it is in paragraph but correct and brilliant
hope it help you...!
Professional education is basically an education that focuses on getting a profession or earning money from that specific skill or talent. It is necessary because financial security is necessary, doesn't matter what we do. We can spend years following our hobies or researching the subject of our interest, but professional education ensures that we are financially secure.
The following information is available for Oriole Company
Accounts receivable $3,000 Cash $6,300
Accounts payable 4,400 Supplies 3,880
Interest payable 610 Unearned service revenue 860
Salaries and wages expense 4,700 Salaries and wages payable 890
Notes payable 32,000 Depreciation expense 760
Common stock 57,200 Equipment (net) 109,600
Inventory 2,940
Required:
Using the information above, prepare a balance sheet as of December 31, 2022.
Answer and Explanation:
The preparation of the balance sheet is presented below:
Assets Amount
Accounts receivable $3,000
Cash $6,300
Supplies $3,880
Equipment (net) $109,600
Inventory $2,940
Total assets $125,720
Liabilities and stockholder equity Amount
Accounts payable $4,400
Interest payable $610
Unearned service revenue $860
Salaries and wages payable $890
Notes payable $32,000
Common stock $57,200
Retained earning (bal figu) $29,760
Total liabilities & stockholder equity $125,720
A firm currently produces 1000 units of output and has total costs of $15,000 and fixed cost of $3,000. What is the firm’s average variable costs?
I need help ASAP pleaseeee !!!
Explanation:
Explanation: The formula is ATC = AFC + AVC. Use this formula.
what's pricing strategy
Answer:
A pricing strategy takes into account segments, ability to pay, market conditions, competitor actions, trade margins and input costs, amongst others. It is targeted at the defined customers and against competitors.
Explanation:
A business can use a variety of pricing strategies when selling a product or service. To determine the most effective pricing strategy for a company, senior executives need to first identify the company's pricing position, pricing segment, pricing capability and their competitive pricing reaction strategy
Explanation:
hope it help
plss brainlys me…thanks for the points
CDB stock is currently priced at $77. The company will pay a dividend of $5.37 next year and investors require a return of 11.8 percent on similar stocks. What is the dividend growth rate on this stock
Answer:
4.82%
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
77 = 5.37 / (0.118 - g)
77(0.118 - g) =5.37
(0.118 - g) = 5.37 / 77
(0.118 - g) = 0.069740
g = 0.118 - 0.069740
g = 0.04826
g = 4.82%
The Texas Consolidated Electronics Company is contemplating a research and development program encompassing eight research projects. The company is constrained from embarking on all projects by the number of available management scientists (40) and the budget available for R&D projects (S300,000). Further, if project 2 is selected, project 5 must also be selected (but not vice versa). Following are the resources requirement and the estimated profit for each project.
Project Expense Management Estimated Profit
($1,000s) Scientists required (1,000,000s)
1 50 6 0.30
2 105 8 0.85
3 56 9 0.20
4 45 3 0.15
5 90 7 0.50
6 80 5 0.45
7 78 8 0.55
8 60 5 0.40
Formulate the integer programming model for this problem and solve it using the computer.
Answer:
Answer
Explanation:
The Texas Consolidated Electronics Company is contemplating a research and development program encompassing eight research projects. The company is constrained from embarking on all projects by the number of available management scientists (40) and the budget available for R&D projects (S300,000). Further, if project 2 is selected, project 5 must also be selected (but not vice versa). Following are the resources requirement and the estimated profit for each project.
Project Expense Management Estimated Profit
($1,000s) Scientists required (1,000,000s)
1 50 6 0.30
2 105 8 0.85
3 56 9 0.20
4 45 3 0.15
5 90 7 0.50
6 80 5 0.45
7 78 8 0.55
8 60 5 0.40
Formulate the integer programming model for this problem and solve it using the computer.
Assume that Jones Company made a payment on a mortgage. It included $100 of principal and $150 of interest. What would the journal entry be to record the payment?
Answer:
the journal entry be to record the payment
Debit : Interest expense $150
Debit : Mortgage Payable $100
Credit : Cash $250
Explanation:
When a payment for mortgage is made, we recognize the interest expense that accrues and also derecognize the part of capital repayment made for the mortgage. That means Mortgage Payable decreases, Interest expense increases and Cash account decreases with the to total of interest and principle.
One unit requires 2 direct labor hours to produce. Standard variable overhead per unit is $1.25 and standard fixed overhead per unit is $1.75. If 330 units were produced this month, what total amount of overhead is applied to the units produced?
a. $660
b. cannot be determined without knowing the actual hours worked
c. $1,980
d. $990
Answer : I SAID THE B, CANNOT BE DETERMINED ....
Explanation:
FOR 2 DIRECT LOBOR HOURS!
1. A company experiences annual demand of 1,000 units for an item that it purchases. The rate of demand per day is very stable, with very little variation from day to day. The item costs $50 to purchase. Ordering costs are $40 and the carrying cost is 25% of the cost of the item. a. How much should the company buy each time an order is placed? b. What is the associated total annual cost (TAC) considering purchase, holding and ordering?
Answer:
EOQ = 80
TAC = 50512.5
Explanation:
Below is the calculation:
Annual Demand = 1000 units
Ordering cost = $40
Holding cost = 25% of 50 = 12.5
Cost per unit = 50
EOQ = SQRT(2 x DEMAND x ORDERING COST / HOLDING COST)
= SQRT(2 x 1000 x 40 / 12.5)
= 80
Number of orders = 1000 / 80 = 12.5
Total annual cost = (50 x 1000) + 12.5 x 40 + 12.5
Total annual cost = 50512.5
Bryant Investments is putting out a new product. The product will pay out $32,000 in the first year, and after that the payouts will grow by an annual rate of 2.75 percent forever. If you can invest the cash flows at 7.25 percent, how much will you be willing to pay for this perpetuity
Answer:
PV= $711,111.11
Explanation:
Giving the following information:
Cash flow (Cf)= $32,000
Annual growth (g)= 2.75%
Interest rate (i)= 7.25%
To calculate the present value (the amount that you are willing to pay), we need to use the following formula:
PV= Cf / (i - g)
PV= 32,000 / (0.0725 - 0.0275)
PV= $711,111.11
Decruitment is the planned elimination of ________ in an organization. A) jobs
B) managerial hierarchy C) cross-functional teams D) departments
Answer:
C) cross-functional teams
Explanation:
Human resources management (HRM) can be defined as an art of managing, controlling and improving the number of people (employees or workers), functions, activities which are being used effectively and efficiently by an organization.
Hence, human resources managers are saddled with the responsibility of recruiting, downsizing, decruiting, managing and improving the welfare and working conditions of the employees working in an organization.
A cross-functional team can be defined as a group that comprises of employees from different functional areas within an organization.
Decruitment is the planned elimination of cross-functional teams in an organization.
This ultimately implies that, decruitment is a method adopted by human resource managers to reduce the number of various employees (workforce) working in an organization.
Similarly, downsizing refers to the planned elimination of jobs (job positions) existing in an organization.
The Keller's discovered that they could reduce their mortgage interest rate from 10% to 4%. The value of homes in their neighborhood has been increasing at the rate of 5% annually. If the Keller's were to refinance their house with $3,000 in closing costs added to their current mortgage balance ($277,000) over a period of time which coincides with their chosen retirement age in 20 years, what would be their new monthly payment including principal and interest
Answer:
The Keller's
Their new monthly payment including principal and interest is:
= $1,817.94
Explanation:
a) Data and Calculations:
Current mortgage balance = $277,000
Closing costs for refinancing 3,000
Total mortgage balance = $300,000
Mortgage interest rate changed from 10% to 4% upon refinancing
Loan Amount 300000
Loan Term 20 years 0 months
Interest Rate 4
Compound Monthly (APR)
Pay Back Every Month
Results:
Payment Every Month $1,817.94
Total of 240 Payments $436,305.84
Total Interest $136,305.84
At the beginning of the current fiscal year, the balance sheet of Hughey Inc. showed stockholders' equity of $529,000. During the year, liabilities increased by $28,000 to $222,000; paid-in capital increased by $31,000 to $173,000; and assets increased by $257,000. Dividends declared and paid during the year were $48,000.
Required:
Calculate net income or loss for the year.
Stockholders’ Equity
Assets = Liabilities + PIC + RE
Beginning = + + $260,000 SE
Changes 130,000 = 11,000 + 20,000 +
Ending = $116,000 + $90,000 +
Answer:
See below
Explanation:
Given the above information, We know that
Assets = Liabilities + equity
Beginning assets = ($222,000 - $28,000) + $529,000 = $723,000
Ending assets = $723,000 + $257,000 = $980,000
Ending equity = Ending asset - Ending liabilities = $980,000 - $222,000 = $758,000
Beginning equity = Beginning paid in capital + retained earnings
Beginning retained earnings = $529,000 - ($173,000 - $31,000)
= $529,000 - $142,000
= $387,000
Ending equity = Ending paid in capital + retained earnings
Ending retained earnings = $758,000 - $173,000 = $585,000
Ending retained earnings = Beginning retained earnings + net income - dividend
$585,000 = $387,000 + Net income - $48,000
Net income = $585,000 - $387,000 + $48,000
Net income = $248,000
Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Ming Chen (the owner) completed these transactions.
a. Owner invested $57,000 cash in the company along with equipment that had a $27,000 market value in exchange for its common stock.
b. The company paid $2,500 cash for rent of office space for the month. The company purchased $18,000 of additional equipment on credit (payment due within 30 days).
c. The company completed work for a client and immediately collected the $2,400 cash earned.
d. The company completed work for a client and sent a bill for $9,000 to be received within 30 days.
e. The company purchased additional equipment for $6,900 cash.
f. The company paid an assistant $3,700 cash as wages for the month.
g. The company collected $4,800 cash as a partial payment for the amount owed by the client in transaction e.
h. The company paid $18,000 cash to settle the liability created in transaction c.
i. The company paid $1,800 cash in dividends to the owner (sole shareholder).
Required:
Create the transaction table.
Answer:
Ming Chen Professionals
Transaction Table:
Assets = Liabilities + Equity
a. Cash $57,000 Equipment $27,000 = Common Stock $84,000
b. Cash ($2,500) = Rent Expense ($2,500)
Equipment $18,000 = Accounts Payable $18,000
c. Cash $2,400 = Service Revenue $2,400
d. Accounts Receivable $9,000 = Service Revenue $9,000
e. Equipment $6,900 = Cash ($6,900)
f. Cash $3,700 = Salaries Expense $3,700
g. Cash $4,800 Accounts Receivable ($4,800)
h. Cash ($18,000) = Accounts Payable ($18,000)
i. Cash ($1,800) = Cash Dividends ($1,800)
Explanation:
a) Data and Analysis of Transactions:
a. Cash $57,000 Equipment $27,000 Common Stock $84,000
b. Rent Expense $2,500 Cash $2,500
Equipment $18,000 Accounts Payable $18,000
c. Cash $2,400 Service Revenue $2,400
d. Accounts Receivable $9,000 Service Revenue $9,000
e. Equipment $6,900 Cash $6,900
f. Salaries Expense $3,700 Cash $3,700
g. Cash $4,800 Accounts Receivable $4,800
h. Accounts Payable $18,000 Cash $18,000
i. Cash Dividends $1,800 Cash $1,800
Which statement is true?
A bank interest lower than inflation means more purchasing power.
Nominal rates are an accurate figure of purchasing power.
Real interest measures the power of the saved money
Real interest is the rate quoted in loan and deposit agreements.
Answer:
Nominal rates are an accurate figure of purchasing power.
The statement nominal rates are an accurate figure of purchasing power can be marked as true. Thus, the correct option is B). Nominal rates are an accurate figure of purchasing power.
What is nominal interest rate?Nominal interest rate refers to the interest rate before taking inflation into account. It is also refer to the interest rate on a loan that is charged without taking into account any fees or compounding of interest.
The nominal rate of interest is often used in banks to describe the interest on different loans and in the investment field as well. The higher the nominal rate, the more interest will be earned on savings.
Basically, the nominal interest rate is approximately equal to the real interest rate plus the inflation rate that can be depicts as (i = R + h).
Learn more about nominal interest rate here:-
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Suppose that Allison has an accounting degree, but she lost her job two months ago when her company merged with another firm. Allison hasn't been able to find another accounting job, so she has taken a part-time job as a sales clerk at a clothing store. The Bureau of Labor Statistics classifies Allison as: unemployed. underemployed. a marginally attached worker. a discouraged worker.
Answer:
underemployed
Explanation:
From the question we are informed about Suppose that Allison has an accounting degree, but she lost her job two months ago when her company merged with another firm. Allison hasn't been able to find another accounting job, so she has taken a part-time job as a sales clerk at a clothing store. The Bureau of Labor Statistics classifies Allison as underemployed. Underemployment as regards Bureau of Labor Statistics can be regarded as one that measure employment and labor utilization in a particular economy which looks the way and how well the labor force is being utilized as regards
experience, skills,l as well as availability to work. People that falls under the classification of underemployed can include high skilled workers that are working in low paying or managing low skill jobs as well as part-time workers even though they who would prefer to work full-time. Unlike unemployment whereby the person is working though not at their full capability.
Consumers' Willingness to Pay Musashi: $25 Jacques: $40 Kyoko: $35 Rina: $10 Firms' Costs Firm A: $15 Firm B: $30 Firm C: $20 Firm D: $10 Each firm has the capacity to produce only one haircut. For efficiency, should be given. Which businesses should cut hair
Answer:
For efficiency, 4 haircuts should be given.
If a haircut is to be given, the cost of the haircut to a firm should be less than or equal to the willingness to pay of the customer going there.
Firm A's cost is less than Musashi's willingness to pay so Firm A can cut. Firm B's cost is less than Jacques's willingness to pay so Firm B can cut. Firm C's cost is less than Kyoko's willingness to pay so Firm C can cut. Firm D's cost is equal to Rina's willingness to pay so Firm D can cut.
That makes 4 firms that can cut therefore 4 haircuts.
The business that should cut as shown above are:
Firm AFirm B Firm C Firm D.Based on the marginal principle, would it make sense to for a business to expand their hours of operation if they project $1,500 of additional revenue per week, however they also project increase expenses of $1,000 for salaries, $150 for utilities and $50 for misc. expenses. No, because they will lose $300 per week Yes, because they will net $300 per week Yes, because they will gain $1,500 of revenue per week No, because they will incur $1,200 of expenses per week.
Answer:
Yes, because they will net $300 per week
Explanation:
According to the marginal principle, production can be increased if marginal revenue would exceed marginal cost. It means that the venture would be profitable
Marginal cost is the increase in cost as a result of increasing output by one unit.
total marginal cost = 1000 + 50 + 150 = 1200
Marginal revenue is the increase in revenue as a result of increasing output by one unit.
Marginal revenue exceeds marginal cost by (1500 - 1200) 300. Thus, hours of operation can be increased
In choosing to acquire a TV manufacturer as part of your entry strategy to enter the Smart TV market, Apple intends to integrate the TV manufacturer within its own company. The transfer of which competencies between the two companies creates the possible scenario for success?
A. Fully integrate the company and combine it with the current computer business because monitors and televisions are similar in their requirements
B. Transfer the knowledge of touchscreen capabilities and the Apple ecosystem from Apple to the TV manufacturer to use for the new Apple Smart TV
Answer:
B. Transfer the knowledge of touchscreen capabilities and the Apple ecosystem from Apple to the TV manufacturer to use for the new Apple Smart TV
Explanation:
In the first case, Apple doesn't have technical expertise on manfucturing the TV. Here the differences in both the devies with respect to the technology that applied in ports, operating system tec
So here the technology that adapted would be difficult for implementation
Instead of this, the apple would create the better position.
So, the option b is correct
Hence, the option a is incorrect
