Answer:
$11.8 million
Explanation:
Particulars Amount
Sales $24 million
Less: Operating costs $7 million
Less: Depreciation $4 million
EBIT $13 million
Less: Tx at 40% on EBIT $5.2 million
Net income before interest $7.8 million
Add: Depreciation $4 million
Operating cash flow $11.8 million
Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO method was $201,000. Inventory data are as follows:
Year Ending Inventory at Year-End Costs Ending Inventory at Base Year Costs
2019 $260,400 $248,000
2020 347,300 302,000
2021 350,400 292,000
Required:
Compute the inventory at December 31, 2019, 2020, and 2021, using the dollar-value LIFO method.
Answer:
Explanation:
The cost index can be calculated as follows:
In 2019:
= 260400/248000
= 1.05
In 2020:
= 347300/302000
= 1.15
In 2021:
= 350400/292000
= 1.2
Inventory Layers converted to the base cost
Date [tex]\text{(Inventory at } \ \ \ \ \ \ \ \ \text{(year-end } \\ \\ \text{ year end cost) } \div \ \ \ \text{cost index) } = \ \ \ \ \ \ \ \text{ Inventory layers(base year cost) }[/tex]
12/31/20 201000 ÷ 1 = 201000
12/31/20 260400 ÷ 1.05 = 248000
12/31/20 347300 ÷ 1.15 = 302000
12/31/20 350400 ÷ 1.2 = 292000
Inventory Layers converted to cost Ending Inventory DVL cost
[tex]\text{(Inventory layers } \ \ \text{("year-end } \\ \\ \text{ base year cost) } \times \text{ cost index") } = \ \ \text{ Inventory layers(cost) }[/tex]
Base
201000 × 1 = 201000
201000 × 1 = 201000
Dec 31, 2019
47000 × 1.05 = 49350
ADD 250350
Base
201000 × 1 = 201000
Dec 31, 2019
47000 × 1.05 = 49350
Dec 31, 2020
(302000 - 248000)
= 54000 × 1.15 = 62100
ADD 312450
Base
201000 × 1 = 201000
Dec 31, 2019
47000 × 1.05 = 49350
Dec 31, 2021
(292000 - 248000)
= 44000 × 1.15 = 50600
ADD 300950
phân tích các thành phần trong hệ sinh thái khởi nghiệp
Answer:
yes
Explanation:
On October 29, Lobo Co. began operations by purchasing razors for resale. The razors have a 90-day warranty. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost per new razor is $15 and its retail selling price is $70. The company expects warranty costs to equal 6% of dollar sales. The following transactions occurred.
2012
Nov.
11 Sold 60 razors for $4,800 cash.
30 Recognized warranty expense related to November sales with an adjusting entry.
Dec.
9 Replaced 12 razors that were returned under the warranty.
16 Sold 180 razors for $14,400 cash.
29 Replaced 24 razors that were returned under the warranty.
31 Recognized warranty expense related to December sales with an adjusting entry.
2013
Jan.
5 Sold 120 razors for $9,600 cash.
17 Replaced 29 razors that were returned under the warranty.
31 Recognized warranty expense related to January sales with an adjusting entry.
Required:
Prepare journal entries to record above transactions and adjustments.
Answer:
1. Cash (Dr.) $4,800
Sales (Cr.) $4,800
2. Warranty Expense 6% * $4800 (Dr.) $288
Estimated warranty Liability (Cr.) $288
3. Estimated warranty liability $15 * 12 razors (Dr.) $180
Inventory (Cr.) $180
4. Cash (Dr.) $14,400
Sales (Cr.) $14,400
5. Warranty Expense 6% * $14,400 (Dr.) $864
Estimated warranty Liability (Cr.) $864
6. Warranty liability $15 * 24 razors (Dr.) $360
Inventory (Cr.) $360
7. Cash (Dr.) $9,600
Sales (Cr.) $9,600
8. Warranty Expense 6% * $9600 (Dr.) $576
Estimated warranty Liability (Cr.) $576
9. Estimated warranty liability $15 * 29 razors (Dr.) $435
Inventory (Cr.) $435
Explanation:
Lobo Co sells razors to customer. It provides 90 day return warranty. The estimated returns are 6% of sales made. The estimated warranty liability is recognized at the time of sales. The expense for return of razor is recognized as warranty expense as company discards the returned razors which costs it $15 per razor.
cho ví dụ về tái định vị ( trừ viettel, bitis, vinamilk..)
Answer:
Ví dụ như Samsung, xuất phát điểm là một công ty bán mỳ gạo, vì thế, tên của công ty lúc đầu là Tam tinh nghĩa là ba ngôi sao. Logo của họ l
Beginning inventory Merchandise $302,000 Finished goods $604,000 Cost of purchases 420,000 Cost of goods manufactured 760,000 Ending inventory Merchandise 202,000 Finished goods 196,000 Compute cost of goods sold for each of these two companies for the year ended December 31, 2017.
Answer:
A. $520,000
B. $1,168,000
Explanation:
Computation to determine the cost of goods sold for each of these two companies for the year ended December 31, 2017.
a. UNIMART Partial income statement
For the year ended December 31,2017
COST OF GOODS SOLD
Beginning merchandise inventory $302,000
Cost of purchase $420,000
Goods available for sale $722,000
Less; Ending merchandise inventory ($202,000)
Cost of goods sold $520,000
b) PRECISION Manufacturing
Partial income statement
For the year ended December 31,2017
COST OF GOODS SOLD
Beginning finished goods inventory $604,000
Cost of manufactured $760,000
Goods available for sale $1,364,000
Less; Ending finished goods inventory ($196,000)
Cost of goods sold $1,168,000
Therefore the cost of goods sold for each of these two companies for the year ended December 31, 2017 will be:
Unimart $520,000
Precision $1,168,000
Paul's Papers is a large distributor of paper used in copy machines and printers. The manufacturer of Paul's most popular product, Perfect Printing Paper, is located just three miles from Paul's DC, and has a lead time of zero days. Hence, for this product Paul's Papers holds no safety stock. In order to get the best prices Paul's Papers orders 22 pallets (a full truckload) of Perfect Printing Paper every time it places an order. Paul's Papers pays $17.00 holding cost per pallet per year for this product.
Required:
How much will Paul's Papers pay in total annual holding costs for Perfect Printing Paper?
Answer:
$187
Explanation:\
Average cycle inventory = Average of maximum inventory and minimum inventory = (22 + 0) / 2 = 11 pallets
Annual holding cost for Perfect Printing Paper = Average cycle inventory * Holding cost per pallet per year
Annual holding cost for Perfect Printing Paper = 11 pallets * $17.00
Annual holding cost for Perfect Printing Paper = $187
Statement of Cash Flows (Indirect Method)
Use the following information regarding the Lund Corporation to (a) prepare a statement of cash flows using the indirect method and (b) compute Lund's operating-cash-flow-to-current-liabilities ratio.
Accounts payable increase $13,500
Accounts receivable increase 6,000
Accrued liabilities decrease 4,500
Amortization expense 9,000
Cash balance, January 1 33,000
Cash balance, December 31 22,500
Cash paid as dividends 43,500
Cash paid to purchase land 135,000
Cash paid to retire bonds payable at par 90,000
Cash received from issuance of common stock 52,500
Cash received from sale of equipment 25,500
Depreciation expense 43,500
Gain on sale of equipment 6,000
Inventory decrease 19,500
Net income 114,000
Prepaid expenses increase 3,000
Average current liabilities 150,000
a. Use negative signs with cash outflow answers.
LUND CORPORATION
Statement of Cash Flows
For Year Ended December 31
Cash Flow from Operating Activities
Net Income Answer
Add (deduct) items to convert net income to cash basis
Depreciation Answer
Amortization Answer
Gain on Sale of Equipment Answer
Accounts Receivable Increase Answer
Inventory Decrease Answer
Prepaid Expenses Increase Answer
Accounts Payable Increase Answer
Accrued Liabilities Decrease Answer
Cash Flow Provided by Operating Activities Answer
Cash Flow from Investing Activities
Sale of Equipment Answer
Purchase of Land Answer
Cash Used by Investing Activities Answer
Cash Flow from Financing Activities
Issuance of Common Stock Answer
Retirement of Bonds Payable Answer
Payment of Dividends Answer
Cash Used by Financing Activities Answer
Net Decrease in Cash Answer
Cash at Beginning of Year Answer
Cash at End of Year Answer
b. Operating-cash-flow-to-current-liabilities ratio (Round answers to two decimal places.)
Answer:
Cash Flow from Operating Activities
Net Income $114,000
Items to convert net income to cash basis
Depreciation $43,500
Amortization $9,000
Gain on Sale of Equipment -$6000
Accounts Receivable Increase -$6000
Inventory Decrease $19500
Prepaid Expenses Increase -$3000
Accounts Payable Increase $13500
Accrued Liabilities Decrease -$4500
Cash Flow Provided by Operating Activities A $180,000
Cash Flow from Investing Activities
Sale of Equipment $25,500
Purchase of Land -$135,000
Cash Used by Investing Activities B -$109,500
Cash Flow from Financing Activities
Issuance of Common Stock $52,500
Retirement of Bonds Payable -$90,000
Payment of Dividends -$43,500
Cash Used by Financing Activities C -$81,000
Net Decrease in Cash(A+B+C) -$10,500
Cash at Beginning of Year $33,000
Cash at End of Year $22,500
b. Operating cash flow to Current liabilities ratio = Operating Activities Cash Flow / Average current liabilities
Operating cash flow to Current liabilities ratio = $180,000 / $150,000
Operating cash flow to Current liabilities ratio = 1.2
Pasadena Candle Inc. projected sales of 800,000 candles for January. The estimated January 1 inventory is 35,000 units, and the desired January 31 inventory is 20,000 units. What is the budgeted production (in units) for January?
Answer:
785,000
Explanation:
Calculation to determine the budgeted production (in units) for January
BUDGETED PRODUCTION (in units) FOR JANUARY
Expected units to be sold 800000
Add Desired ending inventory, Dec 31 20000
Total units available 820000
(800,000+20,000)
Less Estimated beginning inventory, Jan 1 (35000)
Total units to be produced 785000
(820,000-35,000)
Therefore the budgeted production (in units) for January is 785,000
Journalize the following selected transactions of Miramax Rentals. Omit explanations.
Aug. 1 Purchased two new saws on credit at $425 each. The saws are added to Mirmax's rental inventory. Payment is due in 30 days.
8 Accepted advance deposits of $125 for tool rentals that will be applied to the cash rental when the tools are returned.
20 Charged customers $1,250 on account for tool rentals. Payment is due within 30 days.
31 Paid utility bill for the month, $180.
31 Received $600 in payments from the customers that were billed for rentals on August 20.
Answer and Explanation:
The journal entries are shown below:
On Aug 1
Inventory Dr $850
To Accounts payable $850
(Being inventory purchased on account)
On Aug 8
Cash Dr $125
To Advance deposit a/c $125
(Being cash receipts is recorded)
On Aug 20
Accounts Receivable Dr $1250
To Rental Revenue $1250
(Being revenue is recorded)
On Aug 31
Utility expense Dr $180
To Cash $180
(Being cash paid is recorded)
On Aug 31
Cash Dr $600
To Accounts Receivable a/c $600
(Being cash received is recorded)
Baylor Service Corp. redeemed $1,000 of gift cards that customers used to pay for services that were performed by the company. The related adjusting entry would include a debit to: A. Accounts Receivable and a credit to Service Revenue. B. Unearned Revenue and a credit to Service Revenue. C. Cash and a credit to Service Revenue. D. Cash and a credit to Unearned Revenue.
Answer:
B. Unearned Revenue and a credit to Service Revenue.
Explanation:
The adjusting entry is given below:
Unearned revenue $1,000
To Service revenue $1,000
(Being service revenue is recorded)
Here unearned revenue is debited as it decreased the liabilities and credited the service revenue as it increased the revenue
Therefore the option b is correct
Frank Corporation manufactures a single product that has a selling price of $25.00 per unit. Fixed expenses total $64,000 per year, and the company must sell 8,000 units to break even. If the company has a target profit of $19,000, sales in units must be:________.a. 9,648b. 8,760c. 10,375d. 10,560
Answer:
Break-even point in units= 10,375
Explanation:
Giving the following information:
Selling price= $25
Fixed cost= $64,000
Break-even point in units= 8,000
First, we need to determine the unitary contribution margin:
Break-even point in units= fixed costs/ contribution margin per unit
8,000 = 64,000 / contribution margin per unit
contribution margin per unit8,000= 64,000
contribution margin per unit= 64,000 / 8,000
contribution margin per unit= $8
Now, the number of units to be sold to make a profit of $19,000:
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (64,000 + 19,000) / 8
Break-even point in units= 10,375
Explain whether each of the following statements is true or false.
The marginal rate of substitution (MRS) diminishes as an individual moves downward along the demand curve. Assume the statement refers to good X with price Upper P Subscript Upper X , where good X is measured on the horizontal axis of an indifference map and good Y is measured on the vertical axis.
Answer:
1. True
Explanation:
Marginal rate of substitution is quantity of good which a consumer will need to have in order to leave another good. The MRS equals to Px/Py. This will decrease when the demand curve decreases.
Star Corp., an accrual-method C corporation, incurred the following expenses in 2020 (all of which are ordinary and neccessary unless the facts indicate otherwise): Office rent: $50,000 CEO compensation: $1,500,000 Salary paid to janitor $250,000 Business meals: $60,000 (100% of the amount paid) Client entertainment $100,000 (100% of the amount paid) Traffic fines: $5,000 Advertising $70,000 Taxes & licenses (state, local & payroll) $30,000 Life insurance policy on CEO - premiums: $12,000 Average office rents in the area run $50,000-$55,000/year for similar office space. Star Corp's janitor is the CEO's sister. Reasonable salary for a janitor with similar experience, job description and work hours is $20,000/year. The CEO often runs late to important meetings, and he has a tendency to speed (and get speeding tickets) on his way. Star Corp. pays the speeding tickets. Star Corp. is the beneficiary on the life insurance policy. What is Star Corp.'s total deductible business expenses for the year?
Answer:
$1,842,000
Explanation:
Calculation to determine Star Corp.'s total deductible business expenses for the year
STAR CORP.'S total deductible business expenses
Office rent $50,000
CEO Compensation $1,500,000
Salary paid to Janitor $20,000
Business meals $60,000
Client entertainment $100,000
Advertising $70,000
Taxes & Licenses $30,000
Life insurance policy on CEO-Premium $12,000
Total $1,842,000
Therefore Star Corp.'s total deductible business expenses for the year is $1,842,000
You own a stock portfolio invested 32 percent in Stock Q, 22 percent in Stock R, 19 percent in Stock S, and 27 percent in Stock T. The betas for these four stocks are 1.63, 1.35, 2.56, and 0.68, respectively. What is the portfolio beta? Enter the answer with 4 decimals (e.g. 1.1234)
Answer:
Beta= 1.4886
Explanation:
Giving the following information:
You own a stock portfolio invested 32 percent in Stock Q, 22 percent in Stock R, 19 percent in Stock S, and 27 percent in Stock T.
The betas for these four stocks are 1.63, 1.35, 2.56, and 0.68, respectively.
To calculate the portfolio beta, we need to use the following formula:
Beta= (proportion of investment A*beta A) + (proportion of investment B*beta B)
Beta= (0.32*1.63) + (0.22*1.35) + (0.19*2.56) + (0.27*0.68)
Beta= 1.4886
Which of the following is true? Question 8 options: The convenience yield is always positive or zero. The convenience yield is always positive for an investment asset. The convenience yield is always negative for a consumption asset. The convenience yield measures the average return earned by holding futures contracts.
Answer:
The convenience yield is always positive or zero
Explanation:
the convenience fields measure the benefit of owning an asset rather than having a forward/futures contract on an asset . For an investment asset it is always zero . For a consumption asset it is greater than or equal to zero.
A Consumer Expenditure Survey in the city of Firestorm shows that people buy only firecrackers and bandages. s AConsumer Expenditure Survey in 2016 shows that the average household spent $216 on firecrackers and $18 on bandages. In 2016, the reference base year, the price of a firecracker was $6, and the price of bandages was $2 a pack. In the current year, 2017, firecrackers are $5 each and bandages are $3 a pack Calculate the CPI market basket and the percentage of a household's budget spent on firecrackers in the base year.
The CPI market basket is nothing ______ and nothing _______ packs of bandages dollars worth of bandages . The percentage of a household's budget spent on firecrackers in the base year is_______ percent.
Answer: 92.3%
Explanation:
The total budget which is the sum of all the expenditure by the household will be the addition of the $216 spent on firecrackers and $18 on bandages. This will be:
= $216 + $18
= $234
Price of a firecracker = $6
Price of bandages = $2 a pack
Number of firecrackers = $216/$6 = 36
Number of bandages = $18/$2 = 9
CPI market basket is 36 firecrackers and 9 bandages.
Therefore, the percentage of a household's budget spent on firecrackers in the base year will be:
= Expenditures on firecrackers/Total expenditure
= $216 / $234
= 92.3%
The book value of an asset is equal to the Group of answer choices asset's fair value less its historical cost. blue book value relied on by secondary markets. replacement cost of the asset. asset's cost less accumulated depreciation.
Answer:
asset's cost less accumulated depreciation
Explanation:
The book value of an asset could be determined by applying the following formula
Book value of an asset = Cost of an asset - accumulated depreciation
The accumulated depreciation is the depreciation that can be more than on year
So as per the given options, the last one is correct
Prepare the Statement of Retained Earnings from the Adjusted Trial Balance and Income Statement. Within each section of the statement, use the drop-down menus to enter the accounts in Chart of Accounts order and select the account balances. SMART TOUCH LEARNING SMART TOUCH LEARNING Adjusted Trial Balance December 31, 2016 Income Statement Month Ended December 31, 2016 Balance Debit Credit Revenue: Account Title Service Revenue 51,300 Cash 16,900 Accounts Receivable 9,300 Expenses: 2,200 Office Supplies 200 Depreciation Expense--Furniture Interest Expense 300 Prepaid Rent 11,200 3,300 Rent Expense Furniture 19,700 Salaries Expense 3,900 Accumulated Depreciation--Furniture 6,700 Accounts Payable 900 2,200 Supplies Expense Total Expenses 10,600 Salaries Payable 500 Net Income Interest Payable 40,700 300 Unearned Revenue 5,600
Notes Payable 7,900 Common Stock 11,000 Retained Earnings 11,200 Dividends 28,800 Service Revenue 51,300 Depreciation Expense-- Furniture 2,200 Interest Expense 300 Rent Expense 3,300 Salaries Expense 3,900 Retained Earnings, December 31, 2016 23,100 Supplies Expense 900 Total 96,700 96,700
Answer:
SMART TOUCH LEARNING
Statement of Retained Earnings
For the Month Ended, December 31, 2016
Particulars Amount
Retained earning Dec 1, 2016 $11,200
Add: Net Income $40,700
$51,900
Less: Dividend $28,800
Retained earning Dec 31, 2016 $23,100
Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $37.10 and sold for $65.45. A finished desk can be sold for $75.00. The additional processing cost to complete the finished desk is $6.30.Prepare a differential analysis. Round your answers to two decimal places.
Answer:
Find below analysis
Explanation:
Based on the appropriate template, I have prepared the differential analysis as shown in the attached excel file bearing in mind the following points:
The costs per desk under the alternative is the cost of an unfinished desk which is $37.10 plus the cost of further processing for a finished desk which is $6.30
Also, the different effect is simply the amount for alternative 2 minus amount under alternative 1
Based on your understanding of bond ratings and bond-rating criteria, which of the following statements is true?A) BBB bonds usually have the lowest yields in the bond markets.B) US government bonds usually have the lowest yields in the bond markets.
Answer: US government bonds usually have the lowest yields in the bond markets.
Explanation:
Based on the understanding of bond ratings and bond-rating criteria, it should be noted that the US government bonds usually have the lowest yields in the bond markets.
The statement that "BBB bonds usually have the lowest yields in the bond markets" is incorrect.
You are planning to save for retirement over the next 25 years. To do this, you will invest $1,000 a month in a stock account and $700 a month in a bond account. The return of the stock account is expected to be 9 percent, and the bond account will pay 6 percent. When you retire, you will combine your money into an account with a return of 7 percent. How much can you withdraw each month from your account assuming a 20-year withdrawal period
Answer:
Monthly withdraw= $12,452.6
Explanation:
First, we need to calculate the total accumulated at the moment of retirement. We will use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
Stock:
Monthly investment= $1,000
Interest rate= 0.09/12= 0.0075
Number of periods= 25*12= 300 months
FV= {1,000*[(1.0075^300) - 1]} / 0.0075
FV= $1,121,121.94
Bond:
Monthly investment= $700
Interest rate= 0.06/12= 0.005
Number of periods= 25*12= 300 months
FV= {700*[(1.005^300) - 1]} / 0.005
FV= 485,095.77
Total FV= 1,121,121.94 + 485,095.77
Total FV= $1,606,217.71
Now, the annual withdrawal:
Interest rate= 0.07/12= 0.005833
Number of months= 12*20= 240
Monthly withdraw= (FV*i) / [1 - (1+i)^(-n)]
Monthly withdraw= (1,606,217.71*0.005833) / [1 - (1.005833^-240)]
Monthly withdraw= $12,452.6
The Orange Lily Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $2,880 for six months of advertising. Orange Lily Law Firm recorded $2,880 in the Prepaid Advertising account.
Required:
If Orange Lily Law Firm had recorded their expenses using the other method, how much advertising expense would they have recorded for the two months ending February 28?
Answer:
$2880;$960
Explanation:
Calculation to determine how much advertising expense would they have recorded for the two months ending February 28
UNDER THE CASH BASIS, the Law Firm will record $2,880 of advertising expense for the two months ending February 28
UNDER THE ACCRUAL BASIS, the Law Firm will record $960 of advertising expense for the two months ending February 28.l Calculated as:
Advertising expense=$2,880/6*2
Advertising expense=$960
A number of major corporations, such as General Motors, Amway, and Evian, sponsor or support worthy causes, many of which are environmental causes. These companies are highly motivated to engage in cause-oriented marketing because _____.
Answer:
C)corporations hope to generate goodwill toward the company and its brands
Explanation:
THESE ARE THE OPTIONS FOR THE QUESTION
a. it is a socially acceptable way of distributing excess profits
b. corporations function better in a healthy environment
c. corporations hope to generate goodwill toward the company and its brands
d. major companies are required by law to support environmentally friendly causes
e. research shows that companies that support the environment do better financially
From the question we are informed about A number of major corporations, such as General Motors, Amway, and Evian, sponsor or support worthy causes, many of which are environmental causes. In this case, These companies are highly motivated to engage in cause-oriented marketing because corporations hope to generate goodwill toward the company and its brands.
Cause marketing can be regarded as one that contains some collaboration which exist between a profit oriented business as well as a nonprofit organization all for common benefit. Cause marketing can as well be regarded as social or charitable campaigns which is been set up by for-profit oriented brands. In most cases, brands that has association with a nonprofit usually have their corporate social responsibility been boasted.
Which of the following assets purchased in the current year are eligible to be expensed under Section 179 assuming the cost does NOT exceed the limitations?
Rex’s Wrecks purchased $561,000 in new equipment during 2017. Rex wants to use Section 179 to expense the maximum amount of the purchase. How much will Rex get to expense under Section 179 and what will be the adjusted basis of the assets for calculating MACRS depreciation expense?
Question 1 Completion with Options:
A. used equipment
B. storage warehouse
C. land for future building site
D. new office furniture
E. apartment complex
F. new delivery truck
Answer:
1. The assets purchased in the current year that are eligible to be expensed under Section 179 assuming the cost does NOT exceed the limitations are:
A. used equipment
D. new office furniture
F. new delivery truck
2. $561,000 is the maximum to be expensed with an adjusted basis of 100% for MACRS
Explanation:
There is a maximum deduction of $1,050,000 under section 179. The section affords eligible taxpayers the opportunity to reduce their tax burden in the first year that they purchase eligible properties.
The three steps which will create triangular arbitrage profit are as follows: first step, convert ____; second step, convert _______, and third step, convert ______.
a) USD to GBP; CHF to GBP; CHF to USD
b) USD to GBP; GBP to CHF; CHF to USD
c) USD to CHF; GBP to CHF; GBP to USD
d) USD to CHF; CHF to GBP; GBP to USD
Answer:
The correct option is b) USD to GBP; GBP to CHF; CHF to USD.
Explanation:
A triangular arbitrage can be described as the act of taking advantage of a foreign exchange market arbitrage opportunity created by a pricing difference between three different currencies.
A triangle arbitrage method entails three deals, with the first currency being converted to a second, the second currency being converted to a third, and the third currency being converted to the first.
In the question, USD is the first currency, GBP is the second currency, and CHF is the third currency. Based on the explanation above, the three steps which will create triangular arbitrage profit are as follows: first step, convert USD to GBP; second step, convert GBP to CHF, and third step, convert CHF to USD.
Therefore, the correct option is b) USD to GBP; GBP to CHF; CHF to USD.
A company is interested in developing a quarterly aggregate production plan but they are not sure if a level strategy with backorders or a chase strategy would be better. They have the following information available regarding their production operation: Hiring Cost (per unit increase) $40 Firing (per unit decrease) $80 Inventory Cost (per unit) $40 Stockout (per unit) $150 Production (Labor) cost (per unit) $30 Subcontracting cost (per unit) $60 Previous quarter's production 1300 Previous quarter's ending inventory 0 Quarter forecasts are 4000, 3000, 4000 and 5000, respectively. Suppose that you want to use a level plan with backorders (one that produces at the average demand over the four quarters). What is the ending inventory in Quarter 2
Answer:
1000 units
Explanation:
Average demand over the next 4 quarters = (4000 + 3000 + 4000 + 5000) / 4
Average demand over the next 4 quarters = 16000 / 4
Average demand over the next 4 quarters = 4000
That is, as per the Level plan, 4000 units shall be produced in each of the next 4 quarters.
Quarter 1
Beginning Inventory = 0
Production = 4000
Demand = 4000
Ending Inventory = (Beginning Inventory + Production) - Demand
Ending Inventory = (0 + 4000) - 4000
Ending Inventory = 4000 - 4000
Ending Inventory = 0 units
Quarter 2
Beginning Inventory = 0
Production = 4000
Demand = 3000
Ending Inventory = (Beginning Inventory + Production) - Demand
Ending Inventory = (0 + 4000) - 3000
Ending Inventory = 4000 - 3000
Ending Inventory = 1000 units
A certain smelting plant operates 24 hours per day, with three shifts of 200 workers per shift. Due to a flu epidemic, 1/4 of the workers on the first shift, 10 percent of the workers on the second shift, and 100 of the workers on the third shift are unable to work on a given day. If each worker and each shift has the same productivity, what is the approximate percent decrease in productivity due to the flu epidemic?
Answer:
35
Explanation:
12/1-34÷1 I just need points
A ______ strategy aims at securing a competitive advantage by serving buyers in the target market niche at a lower cost and lower price than rivals. Multiple choice question. focused low-cost overall low-cost resource-based cost best-cost
Answer:
focused low-cost
Explanation:
Competitive advantage can be defined as conditions, factors or circumstances that allow a business firm (organization) to manufacture finished goods or services better and perhaps cheaper than other (rival) firms in the same industry. Thus, it's responsible for putting a business firm in a superior or more favorable position than rival firms.
This ultimately implies that, a competitive advantage has a significant impact on a business because it increases its level of sales, revenue generation and profit margin when compared to rival firms in the same industry.
A focused low-cost strategy is a strategic business model that's typically focused on a narrow or small customer base (segment) while providing low-cost goods and services to the customers. Thus, it is a business strategy that involves lowering the price of goods and services in order to generate more revenue and gain a competitive advantage over competitors or rivals in the same industry.
Hence, a focused low-cost strategy is typically aimed at securing a competitive advantage by means of serving buyers or consumers in the target market niche at a lower cost and lower price than rivals in the same industry.
When you ask the controller to look into federal reimbursements to see if he can find the cause of the reduction, how might he respond? (Select all that apply) Federal reimbursements are not part of the revenue cycle, the problem lies in revenue. Since federal reimbursements are part of the revenue cycle, we might find the problem there. The problem lies in revenue so it’s possible that charges are not being generated. The problem lies in revenue so there could be a problem in claims.
Answer:
Federal reimbursements are not part of the revenue cycle, the problem lies in revenue.
The problem lies in revenue so its possible that charges are not being generated.
Explanation:
Federal reimbursements are not revenue. These reimbursements are treated separately other than revenue. The charges are not generated because federal funds are not part of revenue cycle.
An insurer sells a one-year policy to many people with the following loss distributions:Size of loss Probability of loss50,000 0.00530,000 0.0110,000 0.025,000 0.050 0.915Assume:1) The fair premiums, the administrative expenses and the profit loading are all paid at the beginning of the year;2) The claims are paid one year later;3) The interest rate is 8%;4) The administrative expenses are assumed to be 10% of the fair premiums;5) The profit loading is assumed to be 5% of the expected claim costs.Find the fair premium for the policy.
Answer:
Explanation:
The table can be computed as follows:
Size of loss Probability of loss
50000 0.005
30000 0.01
10000 0.02
5000 0.05
0 0.915
The expected claim for the cost can be calculated by multiply each of the loss sizes with their corresponding probability loss.
i.e.
[tex]= [50000 \times 0.005] + [30000 \times 0.01] + [10000 \times 0.02] + [5000 \times 0.05] + [0 \times0.915][/tex]
[tex]= 250 + 300 + 200 + 250 + 0[/tex]
[tex]= 1000[/tex]
Following the given assumptions:
The fair premium(X) of the policy is calculated as follows:
[tex]X= \dfrac{Expected \ Claim }{(1 + interest \ rate ) }+(Administrative \ Exp.\times X )+ exp. \ profit \ percentage[/tex]
[tex]X= \dfrac{1000}{(1 + 8\%)}+(10 \%\times X) +( 5\% \times 1000)[/tex]
[tex]X= \dfrac{1000}{(1 + 0.08)}+(0.1 X) + 50[/tex]
[tex]X-0.1X= \dfrac{1000}{(1.08)}+ 50[/tex]
0.9 X = 975.9259
X = 975.9259/0.9
Fair Premium (X) = 1084.36
