On January 1, 2022. Sheridan Corporation had the following stockholders' equity accounts. During the year, the following transactions occurred.
Common stock ( $ 22 per value, 60500 shares issued and outstanding): $1331,000
Paid in capital in excess of par –common stock: 197,000
Retained earnings: 556,000
Feb. 1 declared a $1 cash dividend per share to stoclcholders of record on February 15. payable March 1.
Mar, 1 Paid the dividend declared in February. Apr. 1 Announced a 2-for-1 stock split. Prior to the split, the market price per share was $39.
July 1 Declared a 10s stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $14 per share:
31 Issued the shares for the stock dividend.
Dec 1 Deceased a $0.40 per share dividend to stockholders of record on December 15 , payable January 5,2023.
31 Determined that net income for the year was $354,000 :
Journalize the transactions and the closing entries for nat income and dividends.

Answers

Answer 1

Here are the journal entries for the transactions and the closing entries for net income and dividends for Sheridan Corporation:

The journal entries

Transactions

February 1:

Debit: Dividends Payable $60,500

Credit: Cash $60,500 (To record declaration of cash dividend)

March 1:

Debit: Cash $60,500

Credit: Dividends Payable $60,500 (To record payment of cash dividend)

April 1:

Memorandum: Stock split increases number of shares to 121,000 and reduces par value to $11 per share.

July 1:

Debit: Common Stock Dividends Distributable $133,100

Credit: Paid-in Capital in Excess of Par-Common Stock $36,300

Debit: Retained Earnings $96,800 (To record declaration of stock dividend)

July 31:

Debit: Common Stock $121,000

Credit: Common Stock Dividends Distributable $133,100 (To record issuance of shares for stock dividend)

December 1:

Debit: Dividends Payable $53,240

Credit: Cash $53,240 (To record declaration of cash dividend)

Closing Entries

Net Income:

Debit: Retained Earnings $354,000

Credit: Income Summary $354,000 (To close net income to retained earnings)

Dividends:

Debit: Retained Earnings $109,740

Credit: Dividends Payable $109,740 (To close dividends to retained earnings)

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Related Questions

The company paid $23,000 on their accounts payable during the year. Record the entry.

The company made sales of merchandise (inventory) to customers for a total $240,000 The sales were made half on credit, and half in cash. The inventory sold had originally Inv cost the company $90,000 (hint #1: this is your cost of goods sold expense). (hint #2: you should use 5 accounts to record entry).

7)

The company provided the services associated with the Unearned Revenues balance at

the beginning of the year. Record the adjustment necessary for the year 2022.

8)

At December 31, the company had earned $42,000 in tax consulting revenue, but had not

yet received payment from their customer. Record the adjustment necessary at December

31, 2022. (use service revenue)

9)

On December 31, received $25,000 in cash representing advance payment for services to

be provided in February of 2023. Record the journal entry necessary on December 31,

2022.

10)

The building has a useful life of 30 years and no salvage value. The equipment has a

useful of 10 years and has a $30,000 salvage value. Record the adjustments necessary at

December 31, 2022 (record the entire year's depreciation for both the building and

equipment).

11)

Taxes for the year totaled $25,000. The taxes will be paid next year. Record the

adjustment necessary at December 31, 2022.

12)

The owners withdrew $4,000 for personal use on December 31, 2022. Record the

owners' withdrawal.

Answers

The provided journal entries represent various transactions and adjustments in an accounting system. Each entry follows the double-entry accounting principle, where each transaction affects at least two accounts with equal and opposite debits and credits.

The specific accounts and amounts used in the entries will vary based on the information provided and the specific circumstances of the company.

The journal entries ensure accurate recording of financial transactions and help maintain proper financial records.

The following are the journal entries required for the given transactions:

1) Accounts Payable payment: Debit Accounts Payable $23,000 and credit Cash $23,000.

2) Sales on Credit: Debit Accounts Receivable $120,000 and credit Sales $120,000.

3) Cash Sales: Debit Cash $120,000 and credit Sales $120,000.

4) Cost of Goods Sold: Debit Cost of Goods Sold $90,000 and credit Inventory $90,000.

5) Services Provided: Debit Unearned Revenues $X and credit Service Revenue $X (amount depends on the adjustment needed).

6) Tax Consulting Revenue: Debit Accounts Receivable $42,000 and credit Service Revenue $42,000.

7) Advance Payment: Debit Cash $25,000 and credit Unearned Revenues $25,000.

8) Depreciation Expense: Debit Depreciation Expense - Building $X, Depreciation Expense - Equipment $X, and credit Accumulated Depreciation - Building $X, Accumulated Depreciation - Equipment $X (amounts depend on the depreciation calculation).

9) Tax Expense: Debit Tax Expense $25,000 and credit Taxes Payable $25,000.

10) Owner's Withdrawal: Debit Owner's Withdrawal $4,000 and credit Cash $4,000.

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XYZ produces chocolate bars and sells them to supermarkets. Its best selling brand is
Choco Delight. It is put in expensive packaging and is sold as a luxury product. This
bestselling chocolate bar has had high and steady sales for the last five years, but recently
sales have started to fall as it has now reached the decline stage of the product life cycle.
a) What is meant by a brand
b) Identify two ways the business could react to the falling sales of the chocolate bars.
c) Do you think giving the chocolate bar a brand name was necessary for its success?
Justify your answer.

Answers

a) A brand is a distinct identifier that sets a product apart. b) conducting market research for improvements and investing in marketing efforts. c) Brand name is crucial for luxury success.

What is a Brand?

a) A brand refers to a name, term, design, symbol, or any other feature that distinguishes a product or service from its competitors in the eyes of customers.

b) Two ways the business could react to falling sales of the chocolate bars are:

Conduct market research to identify the reasons behind the decline and make necessary product improvements or changes based on customer preferences.Invest in marketing and advertising efforts to create awareness, attract new customers, and reposition the product in the market.

c) Giving the chocolate bar a brand name was necessary for its success because it helped differentiate it as a luxury product, created a perception of value and quality, and contributed to the high and steady sales for a prolonged period of time. The brand name "Choco Delight" likely played a significant role in attracting customers and building brand loyalty.

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Where would you find the customers' customer in a typical supply chain? a. In the middle.
b. Downstream
c. Upstream

Answers

In a typical supply chain, the customers' customer would be located downstream. The option b.Downstream is the correct answer.

Downstream refers to the flow of goods and services from a company to its customer base and eventually to its customer's customers. Downstream encompasses distribution, logistics, sales, and marketing, as well as other activities that support the sale of goods and services to end-users.

The customers' customers represent the end-users who use or consume the products or services that the initial customers purchase from the supply chain.

In a supply chain, the customers' customer can refer to a range of end-users who use the products or services supplied by the company, such as retail customers, distributors, and wholesalers.

When a company considers its customers' customers, it can create strategies to ensure that its products or services meet the needs of the end-users.

This can be achieved by collaborating with customers to improve product design and quality, and by implementing effective marketing campaigns that target end-users in the downstream supply chain.

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Draw a graph of the market for heaters in a town after a snow storm. Assume the equilbrium price is $360 and the equilibrium quantity is 100 heaters. Assume a free market for heaters after the storm would have a new equilibrium price of $1000 and new equilibrium quantity of 3000 heaters. Assume the marginal benefit of the 100th heater after the storm is $2500. Draw the supply and demand curves and draw how the demand for heaters increased after the snow storm.

Answers

The demand curve would shift to the right, indicating an increase in demand after the snowstorm, leading to a higher equilibrium price and quantity.

In the initial equilibrium, the supply and demand curves intersect at a price of $360 and a quantity of 100 heaters. This represents the market equilibrium before the snowstorm. After the snowstorm, the demand for heaters increases significantly. This would be represented by a rightward shift of the demand curve. The new equilibrium would occur at a higher price and quantity. Given that the new equilibrium price is $1000 and the new equilibrium quantity is 3000 heaters, we can see that the demand curve has shifted to intersect the supply curve at this new point. To indicate the increased demand, the demand curve would shift to the right, reflecting the greater quantity demanded at each price level. This shift signifies that consumers are willing to pay higher prices to acquire heaters due to the increased demand after the snowstorm. The marginal benefit of the 100th heater after the storm being $2500 suggests that consumers are willing to pay a higher price to obtain additional heaters. This is reflected in the new equilibrium price of $1000.

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Discuss which TVM calculations you used to buy a house, support your financial decision, and the benefits this provided.

Answers

When buying a house, several Time Value of Money (TVM) calculations can be utilized to support the financial decision. These calculations include mortgage affordability, loan amortization, and comparison of different financing options.

By using TVM calculations, individuals can determine the affordability of a mortgage, understand the cost of borrowing, and make informed decisions about their housing investment.

One of the key TVM calculations used when buying a house is mortgage affordability. This calculation helps individuals assess how much they can borrow based on their income, expenses, and financial situation. By considering factors such as the down payment, interest rate, loan term, and monthly income, individuals can determine the maximum amount they can afford to borrow without stretching their budget too thin.

Another important TVM calculation is loan amortization. This calculation allows individuals to understand how their monthly mortgage payments are allocated towards principal and interest over the life of the loan.

By reviewing the amortization schedule, individuals can see the impact of their payments on the loan balance and the total interest paid. This information helps in evaluating the long-term cost of borrowing and assessing the benefits of making additional principal payments or refinancing options.

Additionally, TVM calculations can be used to compare different financing options, such as fixed-rate mortgages, adjustable-rate mortgages, or different loan terms.

By analyzing the total cost of each option, including the interest paid over the loan term, individuals can make an informed decision about the most suitable financing option based on their financial goals and risk tolerance.

The use of TVM calculations in the process of buying a house provides several benefits. It helps individuals make realistic and informed financial decisions by understanding the affordability of the mortgage, evaluating the cost of borrowing, and assessing the long-term financial implications.

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Discuss, Explain and Elaborate what is Work breakdown structure (WBS)?

Answers

A Work Breakdown Structure (WBS) is a hierarchical decomposition of a project into smaller, more manageable components. It organizes and defines the work required to complete a project.

The WBS breaks down the project into major deliverables, which are then further subdivided into smaller tasks, activities, and work packages. Each level of the WBS provides a detailed description of the work to be accomplished, enabling effective project planning, scheduling, and resource allocation.

The WBS follows a top-down approach, starting with the main project objective and progressively breaking it down into smaller, more manageable elements. It typically uses a tree-like structure, with the project at the top, major deliverables as branches, and individual tasks or work packages as leaves.

The WBS does not specify how the work will be performed but focuses on what needs to be accomplished. It helps in identifying dependencies, estimating resources, assigning responsibilities, and tracking progress. By breaking the project into smaller components, it enhances clarity, promotes effective communication, and facilitates control and coordination.

In conclusion, a Work Breakdown Structure (WBS) is a valuable project management tool that provides a hierarchical representation of the work required for project completion. It helps in organizing and defining project tasks, enabling effective planning, scheduling, and resource allocation. By breaking down the project into smaller components, the WBS enhances clarity, communication, and control throughout the project lifecycle.

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Discuss the difference between the Deflationary gap and inflationary gap (Keynesianism approach), use a 45-degree graph and finally describe what policies are needed to reduce full employment in the case of a deflationary gap

Answers

The deflationary gap occurs when aggregate demand is insufficient to reach full employment and the inflationary gap arises when aggregate demand exceeds the economy's capacity to produce.

In a 45-degree graph, the deflationary gap is represented by a point below the equilibrium level of output, indicating a shortfall in aggregate demand. This situation reflects an economy operating below its potential, with high unemployment and unused resources. To reduce full employment in the case of a deflationary gap, Keynesian policies recommend implementing expansionary fiscal and monetary measures. Fiscal policy involves increasing government spending or reducing taxes to stimulate aggregate demand and boost economic activity.

Monetary policy involves lowering interest rates and implementing measures to increase the money supply, encouraging borrowing and investment. These policies aim to increase aggregate demand, close the deflationary gap, and move the economy towards full employment.

In summary, the deflationary gap signifies an underutilization of resources and high unemployment due to insufficient aggregate demand. To address this, expansionary fiscal and monetary policies are needed to stimulate spending, increase aggregate demand, and reduce the gap towards full employment.


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For Airbnb
Explain Porter’s Five Force Model - Apply the five forces model to your industry
Explain VRIO framework and identify the competitive position held by your company
Explain the purpose of a SWOT analysis and provide one for your company Draw out the vertical value chain for your firm’s industry
Financials - Explain what you know about your company's financials. You may use the WU library database to find your company's financial information
Create and explain a Financial Analysis for your company

Answers

Porter's Five Forces Model is a framework developed by Michael Porter to analyze the competitive forces within an industry. The model consists of five forces that shape industry competition: 1) the threat of new entrants, 2) the bargaining power of buyers, 3) the bargaining power of suppliers, 4) the threat of substitute products or services, and 5) the intensity of competitive rivalry.

Applying the Five Forces Model to the Airbnb industry:

1) Threat of New Entrants: The online accommodation marketplace has relatively low barriers to entry, making the threat of new entrants moderate. However, established platforms like Airbnb benefit from network effects, brand recognition, and a large user base, creating some barriers for new competitors.

2) Bargaining Power of Buyers: Customers (guests) have significant bargaining power in the Airbnb industry. They can easily compare listings, negotiate prices, and switch to alternative platforms. This puts pressure on hosts to offer competitive prices and quality accommodations.

3) Bargaining Power of Suppliers: Suppliers in the Airbnb industry are the hosts who provide accommodations. Since hosts have control over their properties and can choose which platform to list on, their bargaining power is relatively high. However, Airbnb's large user base and brand recognition provide it with some leverage.

4) Threat of Substitutes: There are various substitutes for Airbnb, such as hotels, vacation rentals, and other online booking platforms. The availability of substitutes increases the competitive pressure on Airbnb to provide unique value propositions to attract both guests and hosts.

5) Intensity of Competitive Rivalry: The online accommodation marketplace is highly competitive, with Airbnb facing competition from other platforms like Booking.com, Vrbo, and HomeAway. The intense rivalry leads to price competition, technological innovation, and marketing efforts to gain a larger market share.

The VRIO framework is used to analyze a company's resources and capabilities to determine its competitive advantage. VRIO stands for Value, Rarity, Imitability, and Organization.

For Airbnb, its competitive position can be assessed using the VRIO framework:

- Value: Airbnb provides value to both guests and hosts by offering a convenient platform for booking accommodations and monetizing unused spaces. Its vast network and user-friendly interface contribute to its value proposition.

- Rarity: Airbnb's concept and business model are relatively rare in the online accommodation industry. Its global reach, brand recognition, and extensive user base make it a rarity among competitors.

- Imitability: While the concept of an online accommodation marketplace can be imitated, replicating Airbnb's brand, network effects, and scale is challenging. Its technological infrastructure, user trust, and community engagement contribute to its uniqueness.

- Organization: Airbnb has developed strong organizational capabilities, including its technological platform, customer support, and global operations. These organizational factors help differentiate Airbnb and support its competitive advantage.

The SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is a strategic tool used to evaluate the internal and external factors that can impact a company's performance. It helps identify strengths to leverage, weaknesses to address, opportunities to capitalize on, and threats to mitigate.

SWOT analysis for Airbnb:

Strengths:

1) Strong brand recognition and global presence.

2) Extensive network of hosts and guests.

3) Technologically advanced platform and user-friendly interface.

4) Diverse and unique accommodation options.

Weaknesses:

1) Controversies and regulatory challenges in some markets.

2) Dependence on the sharing economy model, which may face public perception issues.

3) Reliance on user-generated content, which can occasionally lead to quality control concerns.

Opportunities:

1) Growing demand for alternative accommodations and experiences.

2) Expansion into new markets and segments, such as business travel and luxury rentals.

3) Integration of new technologies like augmented reality

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The current equilibrium price of oil is $88 per bacrel and the equilibrium quantity of oil is 90 million barrels per day. OPEC increases its oil production by 4 million barrels per day. The price elasticity of demand for oil is −0.2, while the supply of oil is perfectly inelastic over the period of time in question. Based on this information, you predict that after the OPEC's production increase, the equilibrium price of oil will be $ per barrel. Tvoed numeric answer will be automatically saved.

Answers

After OPEC's production increase, the predicted equilibrium price of oil is approximately $84.128 per barrel.

To predict the new equilibrium price of oil after OPEC's production increase, we can use the concept of elasticity and the given information. The price elasticity of demand for oil is -0.2, indicating an inelastic demand. This means that a change in quantity demanded will result in a proportionally smaller change in price.

Given that the supply of oil is perfectly inelastic, meaning it does not respond to price changes, the entire burden of the production increase falls on the demand side.

To calculate the new equilibrium price, we need to determine the change in quantity demanded resulting from OPEC's production increase. OPEC increases production by 4 million barrels per day, which we will subtract from the original equilibrium quantity of 90 million barrels per day to get the new quantity demanded.

New quantity demanded = 90 million barrels per day - 4 million barrels per day = 86 million barrels per day

Using the price elasticity of demand formula:

% Change in quantity demanded = Price elasticity of demand * % Change in price

Since the supply is perfectly inelastic, the % change in price equals the % change in quantity demanded.

% Change in price = % Change in quantity demanded = (86 - 90) / 90 = -4/90 = -0.044

Now, we can calculate the new equilibrium price:

New equilibrium price = Old equilibrium price * (1 + % Change in price)

New equilibrium price = $88 * (1 - 0.044)

New equilibrium price = $88 * 0.956

New equilibrium price ≈ $84.128

Therefore, after OPEC's production increase, the predicted equilibrium price of oil is approximately $84.128 per barrel.

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Goodlife National Bank placed a group of 10000 consumer loans bearing an average expected gross annual yield of 6 percent in a package to be securitized. The investment bank advising GoodLife estimates that the securities will sell at a slight dis. count from par that results in a net interest cost to the issuer of 4.00 percent. Based on recent experience with similar types of loans, the bank expects 3 percent of the packaged loans to default without any recovery for the lender and has agreed to set provided by the investment banking firm will cost 0.5 percent. GoodLife will also provided by the investment banking firm will cost 0.5 percent. GoodLife will also defaults should exceed the expected loan default rate, costing 0.6 percent. Please cal. culate residual income for GoodLife from this loan securitization.

Answers

To calculate the residual income for GoodLife from this loan securitization, we need to consider the various costs and revenues involved.

Interest Income = 6% * X

Net Interest Cost to the Issuer:

The securities will sell at a slight discount from par, resulting in a net interest cost of 4.00 percent. Again, we need to multiply this cost by the total loan amount.

Net Interest Cost = 4.00% * X

Loan Defaults:

The bank expects 3 percent of the packaged loans to default without any recovery for the lender. it will cost an additional 0.6 percent.

Default Cost = (3% + 0.6%) * X

Investment Banking Firm Costs:

The investment banking firm will charge a cost of 0.5 percent for advisory services and an additional 0.5 percent for setting up reserves.

IBF Costs = (0.5% + 0.5%) * X

Now, let's calculate the residual income for GoodLife:

Residual Income = Interest Income - Net Interest Cost - Default Cost - IBF Costs

Residual Income = 6% * X - 4.00% * X - (3% + 0.6%) * X - (0.5% + 0.5%) * X

Simplifying the expression:

Residual Income = (6% - 4.00% - 3% - 0.6% - 0.5% - 0.5%) * X

Residual Income = (-2.60%) * X

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These are protected by the First Amendment (choose all applicable answers) a. an offensive political T-shirt. b. an offensive political T-shirt. c. a restriction on someone’s religious beliefs by the government. d. a direct threat to a co-worker.

Answers

The correct options are: a. an offensive political T-shirt and c. a restriction on someone's religious beliefs by the government.

The First Amendment protects certain types of speech and expression, but there are limitations and exceptions. Let's analyze each option:

a. An offensive political T-shirt: The First Amendment generally protects political speech, including expressive activities like wearing T-shirts with political messages. However, there can be limitations on speech if it incites violence or poses a direct threat to public safety.

b. An offensive political T-shirt: This is a duplicate option. Please provide another option.

c. A restriction on someone's religious beliefs by the government: The First Amendment provides protection for the free exercise of religion. The government is generally prohibited from imposing restrictions on an individual's religious beliefs or practices, unless there is a compelling government interest and the restriction is narrowly tailored.

d. A direct threat to a co-worker: The First Amendment does not protect speech that constitutes a true threat or incites imminent violence. Direct threats made against others can be subject to legal consequences.

Therefore, the correct options are: a. an offensive political T-shirt and c. a restriction on someone's religious beliefs by the government.

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In an LBO transaction, a target firm is priced at $900 million. The lenders require that the sponsor provides 20 percent equity capital. Subordinated lenders would provide 30 percent of the total debt at 8.5% cash interest. the rest of the debt would be provided by senior secured debt at 6.7% cash interest. Calculate the total interest expense in the first year. $57 milion S48 million $73 million $61 million $52 million

Answers

The total interest expense in the first year of the LBO transaction is $61 million.

To calculate the total interest expense in the first year, we need to consider the different components of debt and their respective interest rates.

1. Equity Capital:

The target firm is priced at $900 million, and the lenders require the sponsor to provide 20 percent equity capital. Therefore, the sponsor's equity contribution is 20% of $900 million, which is $180 million. Equity capital does not involve any interest expense.

2. Subordinated Debt:

Subordinated lenders provide 30 percent of the total debt. Let's assume the total debt is denoted as "D." Therefore, the subordinated debt is 30% of D. The cash interest rate on the subordinated debt is 8.5%. The interest expense on the subordinated debt can be calculated as (30% of D) multiplied by 8.5%.

3. Senior Secured Debt:

The remaining portion of the debt is provided by senior secured debt. This means the senior secured debt accounts for 100% - 30% = 70% of the total debt. The cash interest rate on the senior secured debt is 6.7%. The interest expense on the senior secured debt can be calculated as (70% of D) multiplied by 6.7%.

To calculate the total interest expense, we add the interest expense on the subordinated debt and the interest expense on the senior secured debt.

Therefore, by summing up the interest expenses on the subordinated and senior secured debt, the total interest expense in the first year is $61 million.

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The accumulated repair cost for the next 24 months is $85,000 for a property. Assuming all expenses are at the end of the 24-month period, how much should I adjust my bid for the property if I use a discount rate of 0.75% per month effective?

Answers

You should adjust your bid for the property by approximately $120,123.71 to account for the present value of the accumulated repair cost at the given discount rate.

To determine the adjusted bid for the property, we need to calculate the present value of the accumulated repair cost using the given discount rate.

The discount rate of 0.75% per month effective can be converted to a monthly discount factor as follows:

Discount factor = 1 / (1 + r)^n

Where:

r = 0.75% = 0.0075 (decimal representation of the monthly rate)

n = number of months = 24

Now, let's calculate the present value of the repair cost:

PV = Repair cost / Discount factor

PV = $85,000 / (1 + 0.0075)^24

PV ≈ $85,000 / 0.707249

PV ≈ $120,123.71

Therefore, you should adjust your bid for the property by approximately $120,123.71 to account for the present value of the accumulated repair cost at the given discount rate.

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Leigh.Ann \& Naje started a business with $15,000,$25,000 respectively. After 2 years, Naje withdren \$5000 Determine Naye's share of a profit of $210,000 at the end of the third yeat. (3 marks)

Answers

After considering Naje's withdrawal of $5,000, Naje's adjusted capital share is 57.5%. Naje's share of the profit at the end of the third year would amount to $120,750.

To determine Naje's share of the profit, we need to calculate the profit sharing ratio based on the capital contributions made by Leigh.Ann and Naje.

Total capital: $15,000 (Leigh.Ann) + $25,000 (Naje) = $40,000

Leigh.Ann's capital share: $15,000 / $40,000 = 0.375 or 37.5%

Naje's capital share: $25,000 / $40,000 = 0.625 or 62.5%

Since Naje withdrew $5,000 during the third year, we need to subtract that amount from Naje's capital share for the calculation of the profit sharing ratio.

Adjusted Naje's capital share: 62.5% - 5% = 57.5%

Naje's share of the profit at the end of the third year:

$210,000 x 57.5% = $120,750

Therefore, Naje's share of the profit at the end of the third year is $120,750.

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In a short paragraph, define mandatory and discretionary spending. Then give at least one example of something that would be funded under mandatory spending and one example of something that would be funded under discretionary spending. Finally, tell who you think will benefit from mandatory spending and who may lose out.
In a short paragraph, list the 3 ways that government affects the economy. Then give one example for each of these 3 ways. Finally, give an example of what you think would happen to the economy if the government began to spend less money. (How would this affect the economy?)
In a short paragraph briefly explain how local governments collect revenues. Then, explain how local governments spend their revenues on their citizens. (Be specific and try to use examples) Finally, explain how local government influences your life today.
In a short paragraph, define deficit spending. Then, give an example of when the government will use deficit spending. What is a consequence of deficit spending?

Answers

Mandatory spending refers to government expenditures that are required by law and not subject to annual appropriations. Discretionary spending, on the other hand, is spending that is determined through the annual budgetary process and can be adjusted by policymakers.

An example of mandatory spending would be Social Security payments, which are mandated by law and provide retirement benefits to eligible individuals. An example of discretionary spending would be funding for infrastructure projects, such as the construction of highways or bridges.

Those who benefit from mandatory spending include individuals who receive Social Security benefits, while discretionary spending can benefit various sectors such as transportation or education.

However, those who may lose out from mandatory spending could be individuals or groups who believe that the funding allocated to mandatory programs could be better used elsewhere or who argue for changes in the eligibility criteria.

Mandatory spending refers to government expenditures that are required by law, and they typically cover entitlement programs and certain benefits. These spending obligations are not subject to annual appropriations and continue automatically unless modified by legislative changes.

An example of mandatory spending is Social Security payments, which provide retirement, disability, and survivor benefits to eligible individuals. These payments are mandated by law, and the government must allocate funds to fulfill these obligations.

Discretionary spending, on the other hand, is spending that is determined through the annual budgetary process and can be adjusted by policymakers. It includes funding for various government agencies, programs, and projects.

An example of discretionary spending is funding for infrastructure development, such as building or repairing highways, bridges, or airports. The government can allocate funds based on priorities and needs, subject to the decisions made during the budgeting process.

Mandatory spending primarily benefits individuals who are eligible for and rely on the programs covered by it. For instance, Social Security payments provide financial support to retirees, disabled individuals, and surviving family members.

On the other hand, discretionary spending can benefit different sectors and industries depending on the allocation of funds. For example, increased funding for infrastructure projects can create jobs, improve transportation systems, and enhance overall economic growth.

However, it's important to note that mandatory spending can also face criticism or concerns from certain groups or individuals who believe that the funding allocated to mandatory programs could be better used elsewhere or that the eligibility criteria should be modified.

Discretionary spending, being subject to annual appropriations, may face debates and competing priorities during the budgeting process, potentially leading to winners and losers depending on the decisions made by policymakers.

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The discount rate that is used to convert between future values and present values can take many forms such as:
1. interest rate on a loan
2. inflation rate
3. required return on an investment
4. both 1 and 3
5. All the above.

Answers

The correct answer is 5. All the above.The discount rate used to convert between future values and present values can take many forms, including the interest rate on a loan, the inflation rate, and the required return on an investment.

Let's look at each option:Interest rate on a loan: When calculating the present value of future cash flows, the interest rate on a loan is often used as the discount rate. This reflects the cost of borrowing money and represents the opportunity cost of using those funds elsewhere.

Inflation rate: Inflation erodes the purchasing power of money over time. To account for this, the inflation rate is used as a discount rate to adjust future cash flows to their equivalent present value.

Required return on an investment: Investors expect a return on their investment to compensate for the risk and opportunity cost of tying up their capital. The required return on an investment represents the minimum rate of return that an investor demands to justify investing in a particular project or asset.

Therefore, since all the options (1, 2, and 3) are valid forms of discount rates used in converting future values to present values, the correct answer is 5. All the above.

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what is the most serious risk in the acute use of barbiturates?

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Respiratory depression is the most serious risk associated with acute use of barbiturates.

Barbiturates are a group of drugs that are used to treat anxiety, insomnia, seizures, and other conditions.

However, the most serious risk in the acute use of barbiturates is respiratory depression.

Respiratory depression is the most serious risk associated with acute use of barbiturates. These drugs suppress the central nervous system, which can lead to shallow breathing, decreased oxygen levels, and a lack of oxygen to the brain, potentially causing coma or even death.

In addition, barbiturates can lead to addiction and dependence, especially when used in high doses or for prolonged periods of time.

They can also cause a range of other side effects, including drowsiness, confusion, and impaired coordination.

Therefore, it is important to use barbiturates only as prescribed and to be aware of their potential risks.

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Which of the following best describes the main reason that independent auditors report on a company's financial statements?
Management fraud may exist within the company and it is likely that the independent auditors will detect it.
Users of financial statements need confidence in the numbers they base their decisions on.
Misstated account balances may be corrected as the result of the independent audit work.
The accounting system from which the financial statements are derived may have a poorly designed system of internal control.

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The main reason independent auditors report on a company's financial statements is to provide confidence to users of the financial statements, ensuring that they can rely on the numbers for decision-making.

Independent auditors play a crucial role in verifying the accuracy and reliability of a company's financial statements. While it is true that auditors have a responsibility to detect and report any instances of management fraud, this is not the primary reason for their involvement. Instead, the main objective is to provide assurance to the

users of financial statements, such as investors, lenders, and stakeholders.

Users of financial statements rely on these statements to make informed decisions, whether it's assessing the financial health of a company, evaluating its performance, or determining its ability to meet financial obligations. By conducting an independent audit, auditors examine the company's financial records, test internal controls, and verify the accuracy of the financial statements. This process helps to enhance the credibility and trustworthiness of the financial information presented.

While the detection of misstated account balances is an important outcome of the audit process, it is not the primary reason for the audit. Corrections to misstatements are a result of the audit work, ensuring that the financial statements reflect the true financial position and performance of the company. Additionally, the audit may also identify weaknesses in the company's internal control system, providing management with valuable insights to improve and strengthen their control environment.

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There are seven (7) steps to building a high performance team. Explain and expand on the following steps:
1) Recruit the right team members.
2) Focus on team dynamics.
3) Have measurable performance metrics.
4) Resolve conflicts and create harmony.
5) Set clearly defined goals and responsibilities.
6) Identify any under performing team members and help them to improve.
7) Create space for innovation and improvement.

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1) Recruit the right team members: Selecting the right individuals for a team is crucial for its success. It involves identifying the skills, experience, and qualifications necessary for the team's objectives and ensuring that the candidates align with the team's values and culture.

2) Focus on team dynamics: Building strong relationships among team members is essential. Encouraging open communication, fostering trust, and promoting collaboration helps create a positive team dynamic where individuals can effectively work together, share ideas, and support one another.

3) Have measurable performance metrics: Setting clear and measurable performance metrics allows team members to understand their goals and evaluate their progress. It provides a basis for performance assessment, feedback, and continuous improvement, fostering accountability and motivation.

1) Recruiting the right team members involves a thoughtful selection process. It's essential to identify the specific skills and expertise required for the team's objectives. Considering factors such as cultural fit, diversity, and complementary strengths can contribute to a well-rounded team. Recruiting individuals who align with the team's vision and values promotes synergy and enhances collaboration.

2) Team dynamics play a significant role in the effectiveness of a team. By creating an environment that encourages open communication and trust, team members feel comfortable expressing their ideas, seeking help, and providing support. Building positive relationships and fostering a sense of camaraderie contributes to a cohesive and high-performing team.

3) Having measurable performance metrics provides clarity and direction for team members. It enables them to understand their individual and collective goals and facilitates tracking progress and evaluating success. Clear metrics also help identify areas for improvement and enable timely feedback and coaching. By setting targets and regularly reviewing performance against these metrics, teams can maintain focus, stay motivated, and continuously strive for improvement.

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economies of scale may be a barrier to entry in a situation in which

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Main answer: Economies of scale may be a barrier to entry in a situation where existing firms have achieved significant cost advantages due to their large-scale operations.

Explanation: Economies of scale refer to the cost advantages that a firm can achieve as it increases its level of production. When a firm operates at a larger scale, it can spread its fixed costs over a larger output, resulting in lower average costs per unit. This cost advantage allows established firms to offer products or services at lower prices than potential new entrants.

In a situation where existing firms have already attained economies of scale, it becomes difficult for new entrants to compete effectively. The established firms can enjoy cost efficiencies, such as bulk purchasing, specialized equipment, or efficient production processes, which enable them to produce goods or services at a lower cost per unit. This cost advantage creates a barrier to entry as new entrants would struggle to match the competitive prices set by the established firms.

Economies of scale act as a deterrent for potential competitors, as they would face challenges in achieving similar cost efficiencies without a substantial initial investment and scale of operations. As a result, economies of scale can limit competition and serve as a barrier to entry in certain industries or markets.

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If two identical firms with marginal cost 2 and demand curve
P=20-2Q compete using the Cournot model, find Q2.
a. 4.167.
b. 3.33
c. 4.
d. 1.94

Answers

Using the Cournot model Option C. 4 is the correct answer.

In the Cournot model, firms simultaneously choose quantities to produce, based on the quantity they think the other firm will produce. In other words, each firm acts as though it is a monopoly, choosing its optimal quantity based on the assumption that its competitor's output will be constant.Suppose there are two firms in the market, each with identical marginal costs and demand curves as given above. Each firm chooses a quantity Q1 and Q2, respectively, which it expects the other to match. Then, the market quantity Q = Q1 + Q2, and the price P is determined by the demand curve Q = 10 - (1/2)P.Now, to find Q2, we first find the market quantity Q*, which is given by Q* = 2MC / 3. So, Q* = (2*2)/3 = 1.33.Now, we know that Q* = Q1 + Q2, where Q1 is the quantity produced by the other firm. So, Q2 = Q* - Q1.To find Q1, we use the reaction function of the other firm. Since the two firms are identical, the reaction function is symmetrical, and we can assume that Q1 = Q2. So, the reaction function is given by Q1 = (1/2)(Q* - 2), which simplifies to Q1 = 0.67.Substituting this value into Q2 = Q* - Q1, we get Q2 = 1.33 - 0.67 = 0.66.So, Q2 = 0.66, which is closest to option C. 4.

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Colombo Coffee Co is the ultimate coffee shop based in Durban North, has everything a coffee lover would want. First there's the excellent coffee and then there's a range of coffee equipment and beans on sale. The friendly staff are always willing to explain the coffee process to you and offer tours, cuppings, french press, cold brews, and well, any coffee information you require. (
Assume 'Colombo Coffee Co: merges with a major coffee beans supplier. Which one of the following is most likely to be an advantage as a result of this merger? A. External economies of scale will increase efficiency B. Greater control to lower prices of coffee C. Industrial diversification increases risks D. Lower monopoly power in the coffee market

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As a result of the merger between Colombo Coffee Co and a major coffee beans supplier, the most likely advantage would be **greater control to lower prices of coffee**. This merger would provide Colombo Coffee Co with the ability to have a direct influence on the cost of their coffee beans, leading to potential price reductions for their customers.

By merging with a major coffee beans supplier, Colombo Coffee Co would gain a significant advantage in terms of procurement and supply chain management. They would have the power to negotiate favorable pricing and secure a stable and reliable supply of high-quality coffee beans. This increased control over the procurement process would allow them to optimize their cost structure and potentially pass on these savings to their customers.

Lowering the prices of coffee could be a strategic move to attract more customers, increase market share, and enhance competitiveness. It can also lead to improved customer loyalty and repeat business. Additionally, offering more affordable pricing could potentially open up new customer segments and drive overall sales volume.

While external economies of scale could potentially increase efficiency (option A), it is more likely that the merger would primarily focus on leveraging procurement advantages to lower prices. Industrial diversification (option C) would increase risks rather than be an advantage in this context. Finally, the merger would likely provide Colombo Coffee Co with increased market power rather than lower monopoly power in the coffee market (option D), as they would have more control over their supply chain and potentially be able to negotiate better terms with suppliers.

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XYZ Inc. needs to raise $93032390, and they've decided to do it by selling stock. Their underwriting syndicate charges them 6.58% of the total issue and a $934321 fee to cover costs. The total amount of the issue will be

Answers

The total amount of the issue will be $93032390 + $7052216.61 = $100284606.61.

To determine the total amount of the issue, we first need to calculate the total cost of underwriting and fees.

The underwriting syndicate charges 6.58% of the total issue, which is equivalent to 6.58/100 * $93032390 = $6117895.61

In addition to that, there is a fee of $934321 to cover costs.

Therefore, the total cost of underwriting and fees is $6117895.61 + $934321 = $7052216.61

To raise $93032390 after paying for underwriting and fees, XYZ Inc. needs to raise an additional amount equal to the total cost of underwriting and fees, which is $7052216.61

Thus, the total amount of the issue will be $93032390 + $7052216.61 = $100284606.61.

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Which of the following is an example of a command-and-control approach? Requiring trucking companies to only buy new trucks that are low-pollution Charging a fee for use of a park. Raising taxes to pay for a new bridge. Offering low-interest loans to students.

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An example of a command-and-control approach is Requiring trucking companies to only buy new trucks that are low-pollution.

A command-and-control approach is a central government policy that regulates companies' emissions by establishing regulatory requirements that specify acceptable levels of pollution and technologies for reducing those emissions. The command-and-control strategy is often in contrast to market-based regulations that utilize monetary incentives to encourage companies to reduce their emissions.

The command-and-control approach is based on the idea that the government should define the acceptable pollution levels, the best available control technology, and the methods by which compliance should be monitored and enforced. The following are some examples of command-and-control regulations that have been implemented: Requiring trucking companies to only buy new trucks that are low-pollution.

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Monterey Co. makes and sells a single product. The current selling price is $15 per unit. Variable expenses are $9 per unit, and fixed expenses total $27,000 per month. (Unless otherwise stated, consider each requirement separately.) Management is considering a change in the sales force compensation plan. Currently each of the firm's two salespeople is paid a salary of $2,500 per month. g-1.
Calculate the monthly operating income (or loss) that would result from changing the compensation plan to a salary of $400 per month, plus a commission of $0.80 per unit, assuming a sales volume of 5,400 units per month.

Answers

The monthly operating income (or loss) that would result from changing the compensation plan to a salary of $400 per month, plus a commission of $0.80 per unit is $700.

To calculate the monthly operating income under the new compensation plan, we need to consider the sales revenue, variable expenses, and fixed expenses.

Under the new plan, each salesperson receives a salary of $400 per month and a commission of $0.80 per unit sold. The sales volume is given as 5,400 units per month.

First, let's calculate the total sales revenue: Sales revenue = Selling price per unit x Sales volume = $15 x 5,400 = $81,000.

Next, we need to calculate the total variable expenses: Variable expenses per unit x Sales volume = $9 x 5,400 = $48,600.

Now, let's calculate the total salesperson compensation: Total salary per salesperson + Commission per unit x Sales volume per salesperson = ($400 + $0.80 x 5,400) x 2 = $400 + $4,320 = $4,720.

Finally, we can calculate the monthly operating income: Operating income = Sales revenue - Variable expenses - Fixed expenses - Total salesperson compensation = $81,000 - $48,600 - $27,000 - $4,720 = $700.

Therefore, the monthly operating income under the new compensation plan would be $700.

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For the following independent situations, provide:
Issue that is the main concern of the situation (going concern, scope, GAAP, etc. problem)
Your reasoning for choosing this issue (this is usually the definition of the issue)
The Effect on the audit report including type of opinion and any modifications
1. Kieko Corporation has prepared financial statements but has decided to exclude the statement of cash flows. Management explains to you that the users of their financial statements find this statement confusing and prefer not to have it included.
Issue:
Reason:
Effect:
2. Jet Stream Airlines has been audited by your firm for ten years. In the past three years their financial condition had steadily declined. In the current year, for the first time, the current ration is below 2.1, which is the minimum requirement specified in Jet Stream’s major loan agreement.
Issue:
Reason:
Effect:
3. Approximately 20 percent of the audit of Fur Farms, Inc., was performed by a different CPA firm, selected by you. You have reviewed their working papers and believe they did an excellent job on their portion of the audit. Nevertheless, you are unwilling to take complete responsibility for their work.
Issue:
Reason:
Effect:

Answers

Issue that are the main concern of the situation are Exclusion of the statement of cash flows, financial condition decline and current ratio below loan agreement requirement, Reliance on the work of another CPA firm.

Issue: Exclusion of the statement of cash flows.

Reason: The main concern in this situation is the scope of the audit. The statement of cash flows is an essential component of financial statements, providing crucial information about an entity's cash flows from operating, investing, and financing activities. Excluding this statement raises concerns about the completeness and accuracy of the financial statements.

Effect: The exclusion of the statement of cash flows would result in a scope limitation in the audit. As a result, the audit report should contain an "Except for" qualified opinion or an adverse opinion if the effect is material. The opinion paragraph of the audit report would be modified to reflect the scope limitation and the reliance on the other financial statements.

Issue: Financial condition decline and current ratio below loan agreement requirement.

Reason: The main concern in this situation is the going concern assumption. The financial condition of Jet Stream Airlines has deteriorated over the past three years, and the current ratio falling below the minimum requirement specified in the loan agreement indicates a potential inability to meet its short-term obligations.

Effect: The auditor would express an adverse opinion in the audit report due to the existence of a material uncertainty related to the going concern assumption. The opinion paragraph of the audit report would be modified to include an explanatory paragraph highlighting the going concern issue and its potential impact on the company's ability to continue as a going concern.

Issue: Reliance on the work of another CPA firm.

Reason: The main concern in this situation is the responsibility for the work of other auditors. Although the other CPA firm did an excellent job on their portion of the audit, the primary auditor is still responsible for the overall opinion and conclusions reached in the audit. This situation raises concerns about the coordination and integration of the work performed by the two firms.

Effect: The auditor would express a qualified opinion in the audit report to indicate a limitation on the scope of the audit. The opinion paragraph of the audit report would be modified to include an explanatory paragraph explaining the reliance on the work of the other CPA firm and the limitation on the auditor's responsibility.

The qualified opinion would be issued due to the inability to obtain sufficient appropriate audit evidence for the portion of the audit performed by the other firm.

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The relationship between the amount of money x that a small instrument manufacturer spends on advertising and the total sale is given by the function S(x) = -0.003x³ + 0.58x²-200. Find the average rate of change expected in the sales when the amount spend on advertising increases from $50 to $100. a. 17.9 b. 34.5 c. 27.2 d. 44.1 e. None of the above

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The average rate of change expected in the sales when the amount spent on advertising increases from $50 to $100 is 82.5.

To find the average rate of change in sales when the amount spent on advertising increases from $50 to $100, we need to calculate the difference in sales (S(x)) between these two advertising amounts and divide it by the difference in advertising amounts.

First, let's find the sales at $50 and $100:

S(50) = -0.003(50)³ + 0.58(50)² - 200 = -75 + 1450 - 200 = 1175

S(100) = -0.003(100)³ + 0.58(100)² - 200 = -300 + 5800 - 200 = 5300

Now, we can calculate the average rate of change:

Average rate of change = (S(100) - S(50)) / (100 - 50)

= (5300 - 1175) / 50

= 4125 / 50

= 82.5

Therefore, the average rate of change expected in the sales when the amount spent on advertising increases from $50 to $100 is 82.5. Since none of the given options match this value, the answer is e. None of the above.

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On January 1,2020, Sage Corporation purchased 40% of the common shares of Pronghorn Company for $192,000. During the yea Pronghorn earned net income of $81,000 and paid dividends of $20,250. Prepare the entries for Sage to record the purchase and any additional entries related to this investment in Pronghorn Company in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts). Account Titles and Explanation ____ Debit _____ Credit ____

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Journal entries related to investment in Pronghorn Company by Sage Corporation are as follows: January 1, 2020: Investment in Pronghorn Company $192,000; Cash $192,000December 31, 2020: Investment in Pronghorn Company (40% × $81,000) $32,400; Share of earnings of Pronghorn Company $32,400 December 31, 2020: Cash (40% × $20,250) $8,100; Investment in Pronghorn Company (40% × $20,250) $8,100.

Given that Sage Corporation purchased 40% of the common shares of Pronghorn Company for $192,000. During the year Pronghorn earned net income of $81,000 and paid dividends of $20,250. We need to prepare the entries for Sage to record the purchase and any additional entries related to this investment in Pronghorn Company in 2020.So, the entries are as follows; Date Account Titles Debit Credit January 1, 2020Investment in Pronghorn Company $192,000 Cash $192,000 (To record purchase of 40% of common shares of Pronghorn Company)December 31, 2020Investment in Pronghorn Company (40% × $81,000) $32,400Share of earnings of Pronghorn Company$32,400 (To record Sage’s share of the earnings of Pronghorn Company) December 31, 2020Cash (40% × $20,250)$8,100 Investment in Pronghorn Company (40% × $20,250)$8,100 (To record cash dividends received on the investment)

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The expected return for Belmont Bagels stock is 9.38%; 2) the dividend is expected to be $6.84 in one year, $0.00 in two years, $0.00 in three years, $4.33 in four years, and $2.96 in five years; and 3) after the dividend is expected to begin growing by 4.30% a year forever, then what is the current price of one share of the stock?

Answers

The current price of one share of Belmont Bagels stock is $63.88 for the stock.

The expected return for Belmont Bagels stock is 9.38%, the dividend is expected to be $6.84 in one year, $0.00 in two years, $0.00 in three years, $4.33 in four years, and $2.96 in five years, and after the dividend is expected to begin growing by 4.30% a year forever. The current price of one share of the stock can be calculated as follows:Current Price = Present Value of Dividends + Present Value of Expected Stock Price

Therefore, the first step is to calculate the present value of all dividends. The formula for calculating the present value of a future dividend payment is:PV = (Dividend / (1 + r)^t)where PV is the present value, Dividend is the future dividend payment, r is the discount rate, and t is the number of years in the future when the dividend payment is expected to occur.Using this formula, the present value of the dividend payments can be calculated as follows:PV of $6.84 in one year = [tex]$6.84 / (1 + 0.0938)^1[/tex]= $6.24PV of $0.00 in two years = [tex]$0.00 / (1 + 0.0938)^2[/tex] = $0.00PV of $0.00 in three years =[tex]$0.00 / (1 + 0.0938)^3[/tex] = $0.00PV of $4.33 in four years = $4.33 / (1 + 0.0938)^4 = $3.15PV of $2.96 in five years = $2.96 / (1 + 0.0938)^5 = $1.93The sum of these present values is $11.32.

This represents the present value of all the dividend payments for the first five years.Next, we need to calculate the present value of the expected stock price in five years. The formula for calculating the present value of a future stock price is:PV = [tex](Future Stock Price / (1 + r)^t)[/tex]

where PV is the present value, Future Stock Price is the expected stock price in the future, r is the discount rate, and t is the number of years in the future when the stock price is expected to occur.Using this formula, the present value of the expected stock price in five years can be calculated as follows:PV of Expected Stock Price in Five Years = [tex]$2.96 / (0.0938 - 0.0430) * (1 + 0.0430)^5 = $52.56[/tex]

Finally, we can calculate the current price of one share of the stock by adding the present value of all the dividend payments for the first five years to the present value of the expected stock price in five years as follows:Current Price = $11.32 + $52.56 = $63.88

Therefore, the current price of one share of Belmont Bagels stock is $63.88.


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Large corporations provide most of the human and financial resources to community organizations such as the Chamber of Commerce, Lions Club, Elks Club, Rotary, and League of Women Voters. True False According to Bovaird and Loeffler, "coproduction" of public services can include coplanning policy, co-designing public services, coprioritizing services, co-financing efforts, comanaging services, co-delivering services, and coassessment of services. True False

Answers

The statement that large corporations provide most of the human and financial resources to community organizations is false. The statement about "coproduction" of public services including various aspects is true.

While large corporations can contribute significant resources to community organizations, it is incorrect to claim that they provide the majority of the human and financial resources.

Many community organizations rely on a diverse range of funding sources, including individual donations, government grants, and volunteer efforts.

On the other hand, the concept of "coproduction" of public services, as identified by Bovaird and Loeffler, involves the active involvement and collaboration of multiple stakeholders in the planning, designing, prioritizing, financing, managing, delivering, and assessing of public services.

This approach recognizes the value of engaging citizens, service users, and other stakeholders in shaping and improving public services.

By involving various stakeholders, coproduction aims to enhance the effectiveness, responsiveness, and quality of public services by leveraging their knowledge, experiences, and resources.

Therefore, the false statement highlights the need to recognize the diverse sources of support for community organizations, while the true statement emphasizes the importance of involving multiple stakeholders in the coproduction of public services for better outcomes.

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If Melissa takes a policy loan of $15,000, her ACB will be reduced to $10,000. Based on Hofstede's six dimensions of culture, compare China with the country that has the emerging technology. If your emerging technology originates within China, compare your selected country to the United States. Go To The Inventory Audit Program At The Bottom Of This Document. Identify Three Steps In The Audit Program Where Audit Software Can Be Used To Perform Testing. Explain How The Audit Software Can Be Used To Perform These Steps (I.E., The Basic Logic Each Query Or Program Would Use). Here Is A Helpful Hint On How To Go About Responding To This Question.Go to the inventory audit program at the bottom of this document.Identify three steps in the audit program where audit software can be used to perform testing. Explain how the audit software can be used to perform these steps (i.e., the basic logic each query or program would use).Here is a helpful hint on how to go about responding to this question. I am going to use accounts payable as an example. Lets say the audit step is to test for payments to unauthorized suppliers. One approach is to match the vendor master file to the payment history file using vendor number as the common piece of data in the two files. List any records in the payment history file without a corresponding match in the vendor master file. A Canadian company has entered into a contract to deliver, in 6 months time, some custommachinery to a customer in France. You collect the following information:Value of the receivable in Euros 1,320,000.00Current spot rate 0.7356euro = $1 CAD6-month Forward contract rate 0.7639euro = $1 CADShort term investing rates in Canada2.80%Short term borrowing rates in France4.40%Required:1)If the company hedges the risk by arranging a forward contract with its bank,how much will it receive at the time the receivable is collected?2)If the company hedges its risk by entering a money market hedge, how much money will they receive when the receivable is collected? On January 1.2020 SBAInc. purehased a machine for $120000. The machine's estimated baje mould be 5 years and its residual value mould be $20000. Question: Use the straight-linemethod TABLE - DPB TABLE - UOP TaBLE On January 1,2020, SBA Inc. purchased a machine for $120,000. The machine's estimated life would be five years, and its residual value would be $20,000. This machine has a production capacity of 1,000 units allocated as follows: 2020: 300 units | 2021: 150 units | 2022: 200 units | 2023: 250 units | 2024: 100 Winter's Toyland has a debt-equity ratio of .75. The cost ofdebt is 8 percent and the required return on assets is 20 percent.what is the cost of equity if you ignore taxes? The average number of customer making order in ABC computer shop is 5 per section. Assuming that the distribution of customer making order follows a Poisson Distribution, i) Find the probability of having exactly 6 customer order in a section. (1 mark) ii) Find the probability of having at most 2 customer making order per section. (2 marks) Define T: P2 P by T(ao + ax + ax) = (3a + 5a) + (-4a0 + 4a - 10a)x+ 5ax. Find the eigenvalues. (Enter your answers from smallest to largest.) (21, 22, 23) = Find the corresponding coordinate elgenvectors of T relative to the standard basls {1, x, x}. X1 X2 x3 = Find the eigenvalues of the matrix and determine whether there is a sufficient number to guarantee that the matrix is diagonalizable. (Recall that the matrix may be diagonalizable even though it is not guaranteed to be diagonalizable by the theorem shown below.) Sufficient Condition for Diagonalization If an n x n matrix A has n distinct eigenvalues, then the corresponding elgenvectors are linearly Independent and A is diagonalizable. Find the eigenvalues. (Enter your answers as a comma-separated list.) = Is there a sufficient number to guarantee that the matrix is diagonalizable? O Yes O No || Jack , Sara and Chris each have a $ 300,000 capital balance. They share profits and losses as follows 2:1:1 to jack, sara and chris. Suppose chris is withdrawinf from the business.Requirements:1. Journalize the withdrawal of Chris, if the partnership agrees to pay Chris $300.000 cash2. Journalize the withdrawal of Chris, if the partnership agrees to pay Chris $210,000 cash Explain why Enterprise risk management is a preferred riskmanagement tool as compared to the traditional risk management.Any, why does ERM enhance the value of companies that adopt it. Suppose Mr. Cho sells his 30% controlling block in Pyosung to Mr. Shin. With this block transaction, the total firm value increases from $100 million to $140 million. Mr. Cho enjoys private benefits of $20 million, whereas Mr. Shin enjoys only $10 million. What is the net benefit of this transaction for Mr. Shin with and without the mandatory bid rule (triggered at 30%)? Assume that all target firm shareholders will take the offer made by the bidder.A.3 million dollars (without), -20 million dollars (with)B.0 million dollars (without), -40 million dollars (with)C.5 million dollars (without), -6.7 million dollars (with)D.10 million dollars (without), 10 million dollars (with)