Answer:
Results are below.
Explanation:
Giving the following information:
Purchase price= $43,200
Salvage value= $6,800
Useful life= 4 years
First, we need to calculate the annual depreciation using the straight-line method:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (43,200 - 6,800) / 4
Annual depreciation= $9,100
It remains constant during the whole useful life.
Now, using the double-declining method:
Annual depreciation= 2*[(book value)/estimated life (years)]
Year 1:
Annual depreciation= 2*[(43,200 - 6,800) / 4]
Annual depreciation= $18,200
Year 2:
Annual depreciation= 2*[(36,400 - 18,200) / 4]
Annual depreciation= $9,200
Finally, the units-of-activity method:
Annual depreciation= [(original cost - salvage value)/useful life of production in miles]*miles driven
During the four-year period, the company expects to drive the van 227,500 miles. Actual miles driven each year were 58,000 miles in year 1 and 62,000 miles in year 2
Year 1:
Annual depreciation= [(43,200 - 6,800) / 227,500]*58,000
Annual depreciation= $9,280
Year 2:
Annual depreciation= 0.16*62,000
Annual depreciation= $9,920
Solving for PMT of an annuity) To pay for your child's education, you wish to have accumulated $ at the end of years. To do this you plan on depositing an equal amount into the bank at the end of each year. If the bank is willing to pay percent compounded annually, how much must you deposit each year to reach your goal?
Answer:
$783.87
Explanation:
Complete question "To pay for your child's education, you wish to have accumulated $10,000 at the end of 8 years. To dothis, you plan to deposit an equal amount into the bank at the end of each year. If the bank is willing to pay 13 percent compoundedannually, how much must you deposit each year to obtain yourgoal?"
NPER = 8
FV = 10,000
Rate = 13%
PV = 0
Future Value of Annuity = PMT(Rate, NPER, PV, FV)
Future Value of Annuity = PMT(13%, 8, 10000, 0)
Future Value of Annuity = 783.8671964727014
Future Value of Annuity = $783.87
So, one must deposit $783.87 each year to reach the goal.
How does the devaluation and appreciation of the local currency effect to balance of payment, analyze for each component
Answer: Balance of payment will worsen due to devaluation.
Explanation: The balance of payments refers to the balance of supply and demand for a country's currency in the foreign exchange market. Devaluation will make local currency weaker and foreign currency stronger. Therefore less demand for local currency in the foreign market. The imports will become expensive, more amount of local currency will be paid as it is weaker. The exports will become cheaper, more amount of local currency will be received as foreign currency is stronger than it.
Vise Versa for appreciation.
Cameron is single and has taxable income of $58,046.
Required:
Determine his tax liability using the Tax Tables and using the Tax Rate Schedules.
Answer:
Cameron
Cameron's tax liability for the year as a single taxpayer is
= $12,770.12.
Explanation:
a) Data and Calculations:
Taxable income = $58,046
Tax rate = 22%
Tax liability = $12,770.12 ($58,046 * 22%)
b) The amount of tax that Cameron, who is within the 22% tax rate bracket, will pay to the IRS is $12,770.12. The tax liability represents the amount of tax that is due to be paid for his taxable income of $58,046 at the tax rate of 22%.
The Management of XYZ Company Limited uses value chain analysis, supply chain management, inventory b)Identify and explain the type of school of management approach being used in the company.(5marks) management, quality control, queuing theory, linear programming and network models approaches in management of the company. The company relies on scientific applications of mathematical techniques to c)Discuss in four (5) ways, how contingency School of Management is different from the type of school manage problems. a)Briefly explain the typesof management theoriesapplicable in XYZ company Limited. (5marks) of management identified in (ii) above.
a) The school of management that the Management of XYZ Company Limited is applying is called Mathematical or Quantitative School of Management.
The Mathematical or Quantitative School of Management:
Expresses management problems in equations, mathematical symbols, and quantitative models Encourages wide application of computer technology, simulations, and analytics Introduces precision to management thinking and practice
b) The Contingency School, unlike the Mathematical School of Management:
Recognizes that not all management processes can be expressed with mathematical symbols and formulas.Identifies that mathematical models cannot replace sound judgment, which requires intuition and not equation.States that there is no single technique to solving management problems. Encourages managers to use any feasible management technique to solve problems, thereby thinking outside the box. Emphasizes that the applications of management principles and practices (process, behavioral, quantitative, and systems) should be contingent upon the prevailing circumstances.
Thus, with Contingency School, the tools of management thinking and practice should be applied based on prevailing situations and not mathematically with equations, models, and symbols.
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A _____________ strategy entails an organization developing a product and/or service that offers unique attributes that are valued by customers and that the customer perceives to be distinct from competitor offerings.
Answer: differentiation strategy
Explanation:
The differentiation strategy refers to the marketing strategy that is designed in order to distinguish the product and services of a company from other companies.
Product differentiation helps in the development of a strong value proposition which ensures that the product is attractive to the audience. The differentiation strategy ensures that the product is unique from others and this creates a competitive advantage.
A manager spent 5 hours of his day in meetings. If he said that he spent 70% of his day, how many total hours did he work?
Answer:
The total hours the manager worked
= 7.14 hours
Explanation:
a) Data and Calculations:
Time spent by a manager in meetings per day = 5 hours
Percentage of time spent in meetings = 70%
Total hours the manager worked per day = 5/70% = 7.14 hours
b) The total hours that the manager worked per day = 7.14 hours or 7 hours 9 minutes (approximately). This is obtained by dividing the hours spent in meetings by the equivalent proportion that meetings consumed per day.
Omega Enterprises budgeted the following sales in units: January 40,000 February 30,000 March 50,000 Omega's policy is to have 30% of the following month's sales in inventory. On January 1, inventory equaled 8,000 units. February production in units is: a.36,000. b.40,000. c.20,000. d.28,000. e.26,500.
Answer:
a. 36,000
Explanation:
Calculation to determine what February production in units is:
Sales for the month 30,000
Add Ending inventory 15,000
(50,000*0.3)
Less Beginning inventory (9,000)
(30,000*0.3)
February production in units 36,000 units
Therefore February production in units is: 36,000 units
How does the price range affect the elasticity of demand for a product?
Demand for all goods is elastic if the price is low enough.
Price range has little or no effect on elasticity of demand for a good.
Demand for a good can be inelastic at a low price, but elastic at a high price.
Demand for a good can be elastic at a low price but inelastic at a high price.
Answer:
How does the price range affect the elasticity of demand for a product?
Demand for all goods is elastic if the price is low enough.
Price range has little or no effect on elasticity of demand for a good.
Demand for a good can be inelastic at a low price, but elastic at a high price.
Demand for a good can be elastic at a low price but inelastic at a high price.
Explanation:
How does the price range affect the elasticity of demand for a product?
Demand for all goods is elastic if the price is low enough.
Price range has little or no effect on elasticity of demand for a good.
Demand for a good can be inelastic at a low price, but elastic at a high price.
Demand for a good can be elastic at a low price but inelastic at a high price.
Answer:
the answer is demand for a good can be inelastic at a low price, but elastic at a high price.
Explanation:
If there are 360 million people living in the U.S, but 1 million died of health issues leaving 289 million eligible workers, what is the unemployment rate if 170 million are in the labor force and 7 million are actively seeking work?
Answer: 4.12%
Explanation:
Unemployment rate only includes people who are actively looking for work and no discouraged workers or those who have retired:
Unemployment rate = Number of unemployed looking for work / Labor force
= 7,000,000 / 170,000,000
= 4.12%
Dome Metals has credit sales of $144,000 yearly with credit terms of net 120 days, which is also the average collection period. Assume the firm adopts new credit terms of 5/10, net 120 and all customers pay on the last day of the discount period. Any reduction in accounts receivable will be used to reduce the firm's bank loan which costs 10 percent. The new credit terms will increase sales by 20% because the 5% discount will make the firm's price competitive.
Required:
a. If Dome earns 25 percent on sales before discounts, what will be the net change in income if the new credit terms are adopted?
b. Should the firm offer a discount?
Answer:
a. The net change in income if the new credit terms are adopted is a net gain of $2,880.
b. Since the discount of 5% will result in a net gain which is $2,880, the firm should offer a discount.
Explanation:
a. If Dome earns 25 percent on sales before discounts, what will be the net change in income if the new credit terms are adopted?
Old sales = $144,000
New Sales = Old sales * (100% + Percentage sales increase) = $144,000 * (100% + 20%) = $172,800
Increase in Sales = New Sales - Old sales = $172,800 - $144,000 = $28,800
Increase in Profit from new sales = Profit Margin * Increase in Sales = 25% * $28,800 = $7,200
Average Accounts Receivable without discount = Average Collection Period * Average daily Sales = 120 * ($144,000 / 360) = $48,000
Average Accounts Receivable with discount = Average Collection Period * Average daily Sales = 10 * ($172,800 / 360) = $4,800
Reduction in Accounts Receivable = Average Accounts Receivable without discount - Average Accounts Receivable with discount = $48,000 - $4,800 = $43,200
Loan balance as a result of reduction in accounts receivable. Therefore, we have:
Interest Saving = Interest Rate * Loan Reduction = 10% * $43,200 = $4,320
Cost of Discount = Discount Rate * New Sales = 5% * $172,800 = $8,640
Net Gain (loss) = Increase in Profit form new sales + Interest Saving - Cost of Discount = $7,200 + $4,320 - $8,640 = $2,880
Therefore, the net change in income if the new credit terms are adopted is an net gain of $2,880.
b. Should the firm offer a discount?
Since the discount of 5% will result in a net gain which is $2,880, the firm should offer a discount.
Inc. has just now paid a dividend of $2.50 per share (Div0); its dividends are expected to grow at a constant rate of 4 percent per year forever. If the required rate of return on the stock is 14 percent, what is the current value of the stock, after paying the dividend?
a. $26
b. $25
c. $17.86
d. $21.33
Answer: a. $26
Explanation:
Given the details in the question, the value of the stock can be calculated by the Gordon Growth Model:
= Next dividend / (Required return - growth rate)
= (Current dividend * growth rate) / (Required return - growth rate)
= (2.50 * (1 + 4%)) / (14% - 4%)
= 2.625 / 10%
= $26.25
= $26
)An investor is trying to decide between a muni paying 5.75 percent or an equivalent taxablecorporate paying 8.25 percent. What is the minimum marginal tax rate the investor must have toconsider buying the municipal bond
Answer: 30.3%
Explanation:
Because taxes are not paid on municipal bond interest, their interest rates are usually lower with the difference accounting for the taxes paid.
For a municipal bond to be similar to a corporate bond, the tax rate must be such that it makes them equal:
Municipal bond return = Corporate bond return * (1 - tax rate)
5.75% = 8.25% * (1 - tax)
1 - tax rate = 5.75% / 8.25%
1 = 0.6969697 + Tax rate
Tax rate = 1 - 0.6969697
= 30.3%
This Question: 1 pt
The law of demand
shown graphically by a
demand curve
When the price of a good drops, consumers purchase more of it because of
O A. the substitution effect only.
OB. neither the income nor the substitution effect.
O C. the income effect only
OD. both the income and substitution effect.
Click to select your answer
Type here to search
о
Answer:
C. the income effect only
Explanation:
In microeconomics, the income effect is the change in demand for a good or service caused by a change in a consumer's purchasing power resulting from a change in real income. This change can be the result of a rise in wages etc., or because existing income is freed up by a decrease or increase in the price of a good that money is being spent on
Suppose a firm has an annual expenses of $170,000 in wages and salaries, $75,000 in materials, $60,000 in rental expense, and $5,000 in interest expense on capital. The owner-manager does not choose to pay himself, but he could receive income of $30,000 by working elsewhere. The firm earns revenues of $420,000 per year.
1. What are the annual economic costs for the firm described above?
$310,000.
$320,000.
$340,000.
$400,000.
2. What is the economic profit for the firm described above?
$10,000.
$20,000.
Loss of $80,000.
$80,000.
3. To receive a normal profit the firm described above would have to:
Reduce expenses by $10,000.
Earn $80,000 more in revenue.
Earn $80,000 less in revenue.
Earn $310,000 more in revenue.
Answer:
1. The annual economic costs for the firm described above is:
= $340,000.
2. The economic profit for the firm described above is:
= $80,000.
3. To receive a normal profit the firm described above would have to:
None of the above.
Explanation:
a) Data and Calculations:
Wages and salaries expenses = $170,000
Cost of materials = $75,000
Rental expense = $60,000
Interest expense on capital = $5,000
Total expenses = $310,000
Opportunity cost = $30,000
Total costs = $340,000
Revenue per year = $420,000
1. The annual economic costs for the firm described above is:
= $340,000 ($310,000 + $30,000).
2. The economic profit for the firm described above is:
= $80,000 ($420,000 - $340,000).
3. To receive a normal profit the firm described above would have to:
None of the above.
The normal profit = $110,000 ($420,000 - $310,000)
, G's employees each earned an average of $870 per week. A total of 600 vacation weeks earned in 2021 were not taken during 2021. Wage rates for employees rose by an average of 6 percent by the time vacations actually were taken in 2022. What is the amount of G's 2022 salaries expense related to 2021 vacation tim
Answer:
$31,320
Explanation:
Calculation to determine the amount of G's 2022 salaries expense related to 2021 vacation tim
G's employees earned average of $870 per week.
Total vacation week in 2021 wew not taken - 600 week
Total salary expense of G corporation = $870 per week × 600
Total salary expenses = $522,000
If Wage rates for employees rose by an average of 6 percent
The amount of G's 2022 salaries expense = Total salary expenses × wage rate
The amount of G's 2022 salaries expense = $522,000 × 6%
The amount of G's 2022 salaries expense = $31,320
Therefore the amount of G's 2022 salaries expense related to 2021 vacation tim is $31,320
Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the purchase of the equipment necessary to produce the diet drink will cost $23.00 million. The plant and equipment will be depreciated over 10 years to a book value of $2.00 million, and sold for that amount in year 10. Net working capital will increase by $1.46 million at the beginning of the project and will be recovered at the end. The new diet drink will produce revenues of $9.03 million per year and cost $1.93 million per year over the 10-year life of the project. Marketing estimates 17.00% of the buyers of the diet drink will be people who will switch from the regular drink. The marginal tax rate is 22.00%. The WACC is 14.00%.
Required:
Find the NPV (net present value).
Answer:
Net cash flow in year 0 = initial investment + increase in working capital
Net cash flow in years 1 to 9 = income after taxes + depreciation
Net cash flow in year 10 = income after taxes + depreciation + recovery of working capital
the percentage of buyers shifting from regular to diet drink is irrelevant for this project
IRR is calculated using the IRR function in Excel, with the inputs of values being the array of cells containing the net cash flows
IRR = 16.7627%
out line four roles played by entrepreneurs in Kenya
Answer:
The roles of entrepreneurs in Kenya are:
Looking out for and spotting opportunities in the marketCreating jobsIncreasing the Internally Generated Revenue of KenyaDevelopment of InfrastructureExplanation:
Entrepreneurs know how to spot changes and patterns in business trends. When the market begins to tilt in a particular direction, entrepreneurs are quick to spot and take advantage of such. Many times, they even think of the demand before the market knows it to exist.Job creation is one of the reasons why SMEs are invaluable to any economy. Kenya inclusive. When a business does well, where it is located, this translates to increased revenue for the government. There are two main channels via which the government can make money from businesses:A. Company Income Tax
B. Taxes paid to the government by employees working in such establishments.
Countries that are business savvy run an environment that is enabling for entrepreneurs whilst providing tax incentives for top talent. Hence attracting more revenue to their coffers.
Because governments need businesses to thrive, they provide every amenity that is necessary for businesses and their staff to be comfortable in such environments. This way, entrepreneurs indirectly influence the development of infrastructure.Cheers
Firm X is considering the replacement of an old machine with one that has a purchase price of $70,000. The current market value of the old machine is $18,000 but the book value is $32,000. The firm's tax rate is 30%. What is the net cash outflow for the new machine after considering the sale of the old machine? Disregard the effect of depreciation of the new machine if acquired.
A. $47,800
B. $70,000
C. $52,000
D. $40,100 20.
Answer:
A. $47,800
Explanation:
Calculation to determine the net cash outflow for the new machine after considering the sale of the old machine
First step
Loss on sale of old machine = 18000 - 32,000
Loss on sale of old machine = ($14,000)
Second step
Tax savings from loss on sale=14,000 x 30%
Tax savings from loss on sale = $4200
Third step
Net benefit from sale of old machine = Sales proceeds + tax on loss of sale
Net benefit from sale of old machine= $18,000 + $4200
Net benefit from sale of old machine= $22,200
Now let determine the Net cash outflow for new machine
Net cash outflow for new machine = Cost of new machine – Net benefit
Net cash outflow for new machine= $70,000 – $22,200
Net cash outflow for new machine= $47,800
Therefore the net cash outflow for the new machine after considering the sale of the old machine is $47,800
To reduce your chances of identify theft you should
a.
carry your Social Security Card in your wallet.
b.
check your credit rating regularly.
c.
only use drive thru ATM’s.
d.
never keep receipts with credit information printed on them.
To reduce your chances of identify theft you should: d. never keep receipts with credit information printed on them.
What is identity theft?Identity theft can be defined as the way in which person tend to make use of another person personal data or information so as to defraud people or to commit a crime.
This person can either make use of the person name, credit card numbers among others to commit a fraudulent act by impersonating the owner without the awareness of the person that owns the information.
In order to reduce the identify theft it is advisable that a person should never keep receipts that has details of their credit information printed on them as a fraudster can make use of the information to defraud or to commit crime.
Therefore To reduce your chances of identify theft you should: d. never keep receipts with credit information printed on them.
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A three-year bond has an 8.0 percent coupon rate and a $1,000 face value. If the yield to maturity on the bond is 10 percent, calculate the price of the bond assuming that the bond makes semiannual coupon payments.
Answer:
$949.24.
Explanation:
The price of the bond also known as the Present Value (PV) of the Bond CAN be calculated using a Financial Calculator as
FV = $1,000
I/yr = 10%
Pmt = ($1,000 x 8.0 %) / 2 = $40
N = 3 x 2 = 6
P/yr = 2
PV = ???
Inputting the data in a Financial Calculator gives a Present Value of $949.24. Thus the price of the bond is $949.24.
You are considering the purchase of a machine out of your evaluation among four new ones. They have differing initial and ongoing costs and differing lives. Whichever machine is purchased will be replaced at the end of its useful life. Under such circumstances, you should choose the machine to purchase based on the ___________________.
Answer:
Lowest equivalent annual cost.
Explanation:
Considering the above scenario, it is more advantageous to choose the machine that has the lowest equivalent annual cost. As the newly acquired machine will be replaced at the end of its useful life, it is more advantageous for it to have a higher performance and lower annual cost among others, as the cost of depreciation of machinery and equipment must be considered as a fixed cost that will also directly impact a company's accounts.
advantages of discounted payback period
Answer:
The main advantage of the discounted payback period method is that it can give some clue about liquidity and uncertainly risk. Other things being equal, the shorter the payback period, the greater the liquidity of the project. Also, the longer the project, the greater the uncertainty risk of future cash flows.
You own a portfolio that is invested 15 percent in Stock X, 35 percent in Stock Y, and 50 percent in Stock Z. The expected returns on these three stocks are 9 percent, 15 percent, and 12 percent, respectively. What is the expected return on the portfolio
Answer:
12.60%
Explanation:
The expected return on the portfolio is the sum of the weighted expected return of each stock in the portfolio
(0.15 x 9) + (0.35 x 15) + (0.5 x 12)
= 1.35 + 5.25 + 6
= 12.6%
Minor Electric has received a special... Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $11 per unit. Minor currently produces and sells 7,500 units at $12.00 each. This level represents 75% of its capacity. Production costs for these units are $13.50 per unit, which includes $9.00 variable cost and $4.50 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $625 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. If Minor wishes to earn $1,075 on the special order, the size of the order would need to be:_______.
a. 3,400 units
b. 683 units
c. 1,700 units
d. 136 units
e. 850 units
Answer:
e. 850 units
Explanation:
Desired profit = $1,075
New machine cost = $625
Variable cost per unit = $9 per unit
Sale price per unit = $11 per unit
Order size = (Desired profit + Machine cost) / Contribution margin per unit
Order size = ($1,075 + $625) / ($11 - $9)
Order size = $1,700 / $2
Order size = 850 units
So therefore, if Minor wishes to earn $1,075 on the special order, the size of the order would need to be 850 units.
Tora Co. plans to produce 1,020 units in July. Each unit requires two hours of direct labor. The direct labor rate is $20 per hour. Prepare a direct labor budget for July.\
Answer: $40,800
Explanation:
Each unit requires 2 hours of direct labor.
1,020 units would therefore require:
= 1,020 * 2
= 2,040 hours of labor
The direct labor rate is $20 per hour. If there are 2,040 hours to be worked, the cost would therefore be:
= 20 * 2,040
= $40,800
Yesterday, the dollar was trading in the foreign exchange market at 1.10 euros per dollar. Today, the dollar is trading at 1.20 euros per dollar. The dollar has ________ and a possible reason for the change is ________ in the expected future exchange rate.
Answer: appreciated; an increase.
Explanation:
Since there's an increase in the dollar rate at the foreign exchange market at 1.10 euros per dollar to 1.20 euros per dollar, this implies that the dollar has appreciated.
The appreciation of the dollar simply means that there's an increase in the value of the dollar when it's compared to.anitgee currency. Tge reason for the change is the increase in the expected future exchange rate.
During year 1 meriwerher construction company started a construction job with a contract price 3,000,000 the job was completed in year 2
Answer Correct Answer = Option ‘C’ $ 350,000= Gross Profit for Year 2 Working for above answer Working Year 1 end Year 2 End A Contract Price $ 3,000,000
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Cosmo Company reported credit sales of $345,000 for the calendar year in its first year of operations. At December 31, customers buying on credit owed $35,000 to the company. Based on the experience of similar businesses, management estimates that $3,500 of its accounts receivable will be uncollectible.
Required:
Prepare the necessary December 31 adjusting entry by selecting the correct account names and dollar amounts
Answer and Explanation:
The journal entry is given below:
Bad debt expense $3,500
To Allowance for doubtful debts $3,500
(Being bad debt expense is recorded)
Here bad debt expense is debited as it increased the expense and credited the allowance as it decreased the assets
During April, Cavy Company incurred factory overhead as follows:
Indirect materials $11,600
Factory supervision labor 3,700
Utilities 500
Depreciation (factory) 600
Small tools 230
Equipment rental 720
Journalize the entry to record the factory overhead incurred during April.
Answer and Explanation:
The journal entry is given below:
Factory Overhead $17,350
Materials $11,600
Wages Payable $3,700
Utilities payable $500
Accumulated Depreciation $600
Small tools $230
Equipment Rental payable $720
(To record the factory overhead incurred during April)
Here the factory overhead is debited as it increased the expense and credited the payable accounts as it increased the liabilities, credited the material, accumulated depreciation and small tools
type of power based on manager's ability to influence employees with something of value to them.
Answer:
incentive or reward
Explanation:
incentive pay, time and a half pay for overtime are examples
