You have just been instructed to develop a schedule for introducing a new product into the marketplace. Below are the elements that must appear in your schedule. Arrange these elements into a work breakdown structure (down through level 3), and then draw the arrow diagram. You may feel free to add additional topics as necessary.1. Production layout2. Market testing3. Review plant cost4. Select distributors5. Analyze selling cost6. Analyze customer reactions7. Storage and shipping cost8. Select salespeople9. Training salespeople10. Trained distributors

Answers

Answer 1

Answer:

Attached below is the arrangement of these elements with additional topics  and arrow diagram

Explanation:

The given Elements are :  Production layout , market testing , Review plant cost, select distributors, Analyze selling cost, Analyse customer reactions, storage and shipping cost, select salespeople, training sales people, trained distributors. including additional topics as well

You Have Just Been Instructed To Develop A Schedule For Introducing A New Product Into The Marketplace.

Related Questions

"A customer owns 200 shares of ABC, purchased 2 years ago at $50 per share. The current market value of ABC stock is $60 per share. If the customer gifts the stock to his son, the result is the:"

Answers

Answer: The donor may incur a gift tax liability. Also, the cost basis will be $50 per share to the recipient of the gift.

Explanation:

From the question, we are informed that a customer owns 200 shares of ABC, that were bought 2 years ago at $50 per share and that the current market value of ABC stock is $60 per share.

If the customer gifts the stock to his son, the result is the donor may incur a gift tax liability. Also, the cost basis will be $50 per share to the recipient of the gift.

In an attempt to bring about a change in the organization, what do you think might happen to The Learning Focus if Nemeroff fired all the existing writers and replaced them with new writers

Answers

Answer:

If all existing writers are replaced with new writers there could be a number of issues as the existing writers had experience and were use to of the type of writing required, they understand the nature of the reader. The new writers might fail to satisfy the old readers as they will be unaware of the taste the readers want and like to read. If learning focus Nemeroff fired all the existing writers the above described issues may appear.

Explanation:

If all existing writers are replaced with new writers there could be a number of issues as the existing writers had experience and were use to of the type of writing required, they understand the nature of the reader. The new writers might fail to satisfy the old readers as they will be unaware of the taste the readers want and like to read. If learning focus Nemeroff fired all the existing writers the above described issues may appear.

If I currently sell 10,000 units, and my use of Formula 1 indicates that I will need to sell 500 additional units to justify my suggested change to the marketing mix, what percentage of sales does that represent

Answers

Answer:

It represents a 5% change to the marketing mix.

Explanation:

The change = 500/10,000 x 100 = 5%.

Company A's change in a variable can be compared with another index, by expressing the change (addition) as a percentage of the index.  For instance, the sale of 10,000 units is an index.  The additional 500 units that is needed to be sold represent the change.  In percentage terms, the change can be divided by the index and then multiplied by 100.

Granger Inc. Comparative Balance Sheets December 31

Assets 2017 2016
Cash $80,800 $48,400
Accounts receivable 87,800 38,000
Inventory 112,500 102,850
Prepaid expenses 28,400 26,000
Long-term investments 138,000 109,000
Plant assets 285,000 242,500
Accumulated depreciation (50,000) (52,000)
Total $682,500 $514,750

Liabilities and Stockholders' Equity
Accounts payable $102,000 $67,300
Accrued expenses payable 16,500 21,000
Bonds payable 110,000 146,000
Common stock 220,000 175,000
Retained earnings 234,000 105,450
Total $682,500 $514,750


Granger Inc. Income Statement Data For the Year Ended December 31, 2017

Sales revenue $388,460

Less:
Cost of goods sold $135,460
Operating expenses, excluding depreciation 12,410
Depreciation expense 46,500
Income tax expense 27,280
Interest expense 4,730
Loss on disposal of plant assets 7,500 233,880
Net income $154,580

Additional information:

1. New plant assets costing $90,000 were purchased for cash during the year.
2. Old plant assets having an original cost of $51,750 and accumulated depreciation of $43,650 were sold for $1,350 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $23,427 was declared and paid during the year.

Required:
Prepare a statement of cash flows for Granger Inc. using the direct method.

Answers

Answer:

                                       GRANGER INC.

       STATEMENT OF CASH FLOWS (USING INDIRECT METHOD)

                  FOR THE YEAR ENDED DECEMBER 31, 2017

                Particulars                                                    Amount$

Cash flow from operating activities

Net Income                                                                    154,580

Adjustments to reconcile net income to net cash

provided by operating activities  

Adjustment for non cash effects

Depreciation expense                                                   46,500

Loss on sale of plant assets                                           7,500

Change in operating assets & liabilities

Increase in Accounts receivable                                  -49,800

Increase in inventory                                                      -9,650

Increase in prepaid expenses                                        -2,400

Increase in accounts payable                                         34,700

Decrease in accrued expenses payable                       -4,500

Net cash flow from operating activities (a)                 176,930

Cash Flow from Investing activities

Old Plant assets sold                                                       1,350

New plant assets purchased                                         -90,000

Long-term investments purchased                                -29,000

Net cash Flow from Investing activities (b)                -117,650

Cash Flow from Financing activities

Cash dividends paid                                                        -23,427

Common stock issued                                                      45,000

Bonds paid                                                                        -36,000

Net cash Flow from Financing activities (c)                 -14,427

Net Change in cash c=a+b+c                                            44,853

Add: Beginning cash balance                                           48,400

Closing cash balance                                                        93,253

The best way to characterize public relations at Under Armour is to use the label Multiple Choice fund raising. political public relations. marketing public relations. relationship management. publicity

Answers

Answer:

The correct answer is the option: Marketing Public Relations.

Explanation:

To begin with, the concept known as "Public Relations" in the marketing field refers to the instrument that the managers have and they can use with the purpose to establish better relationships with the public and with the target audience that the company has. The major goal of the public relations strategy is to know how to engage the company in relationships with outside agents that can benefit the company in its image to the customers. Therefore that this type of strategy focuses on the actions that the company can take in order to increase its public image to the society.

. A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%. What is the stock's current price

Answers

Answer:

The answer is $18.29

Explanation:

We have many formulas to arriving at the stock price but here we use Gordon growth model.

Formula for getting stock price is:

D1/r - g

Where:

D1 - is the next year dividend or expected dividend to be paid next.

r is the rate of return

g is the growth rate

$0.75/0.105 - 0.064

$0.75/0.041

$18.29.

Therefore, the stock's current price is $18.29

BioGrow Pharma Inc. wanted its research partner, an R&D company, to develop a cancer vaccine. However, the project required huge capital investments, and its research partner was not ready to solely face the risks involved. Thus, to gain its partner's confidence and to prove its involvement, BioGrow Pharma invested $100 million in the project. This investment made by BioGrow Pharma will result in a _____.

Answers

Answer: credible commitment

Explanation:

From the question, we are informed that BioGrow Pharma Inc. wanted its research partner, an R&D company, to develop a cancer vaccine but that the project required huge capital investments, and its research partner was not ready to solely face the risks involved.

Therefore, to gain its partner's confidence and to prove its involvement, BioGrow Pharma invested $100 million in the project. This investment made by BioGrow Pharma will result in a credible commitment.

Script, Inc., has two product lines. The September income statements of each product line and the company are as follows: SCRIPT, INC. Product Line and Company Income Statements For Month of September Pens Pencils Total Sales $30,000 $30,000 $60,000 Less variable expenses (12,000) (12,000) (24,000) Contribution margin 18,000 18,000 36,000 Less direct fixed expenses (9,000) (7,000) (16,000) Product margin $9,000 $11,000 20,000 Less common fixed expenses (6,000) Net income $14,000Pens and pencils are sold in two territories, Florida and Alabama, as follows: Florida AlabamaPen sales $18,000 $12,000Pencil sales 9,000 21,000Total sales $27,000 $33,000The common fixed expenses are traceable to each territory as follows:Florida fixed expenses $2,000Alabama fixed expenses 3,000Home office administration fixed expenses 1,000Total common fixed expenses $6,000The direct fixed expenses of pens, $9,000, and of pencils, $7,000, cannot be identified with either territory. The company's accountants were unable to allocate any of the common fixed expenses to the various segments.Required:Prepare income statements segmented by territory for September.

Answers

Answer:

                                    Script, Inc.

                   Territory and Company Income Statements

                         For the Month of September

                           Florida$   Alabama$  Company Total$

Sales

Pens                       18000      12000       30000

Pencils                    9000      21000        30000

Total sales [A]        27000    33000       60000

Variable cost

Pens                       7200        4,800        12000

                            [18000*.4]  [12000*.4]

[12000 Variable cost / 30000 = 0.40 per pen ]

Pencils                    3600        8400        12000

                             [9000*.4]   [21000*.4]

[12000 Variable cost /30000 = 0.4 per pencil]

Total var. cost [B]    10800       13200       24000

Contribution A-B    16200      19800       36000

D. fixed expenses     2000       3000        5000

Territory margin   14200       16800      31000

Common fixed expenses

Pen               9000

Pencil            7000

Home office  1000

Total              17,000                                    (17000)

Net income                                                   14000

Hannah is the owner of a party store. Last year, her total revenue was $145,000, her rent was $12,000, her labor costs were $65,000, and her overhead expenses were $15,000. If she could earn $53,000 working for another party store nearby, we know that her economic profit was

Answers

Answer:

$433,900

Explanation:

The computation of the capitalized cost of the land is shown below:-

Capitalized cost of the land = Purchase price + Demolition of building + Title insurance + Attorney fee + Property taxes covered during the period - Scrap value from the building

= $420,000 + $12,000 + $900 + ($3,000 - $500) - $1,500

= $420,000 + $12,000 + $900 + $2,500 - $1,500

= $435,400 - $1,500

= $433,900

Presence indicators _____.

a. are small digital badges that people can embed in emails and on websites to share their contact information and social affiliations.
b. are visual elements used to change the aesthetic of a web page.
c. are things that others create we feel are worth redistributing to our social networks.
d. are an option to have one's profile reflected back to them from the perspective of others.
e. enable users to project an identity more vividly to others within a community

Answers

Answer: enable users to project an identity more vividly to others within a community.

Explanation:

The small digital badges that people can embed in emails and on websites to share their contact information and social affiliations are referred to as identity cards.

Skin/themes are the visual elements that are used to change the aesthetic of a web page.

Identity reflectors are option to have one's profile reflected back to them from the perspective of others.

Presence indicator allow users to project an identity more vividly to others within a community.

You own a stock portfolio invested 34 percent in Stock Q, 18 percent in Stock R, 36 percent in Stock S, and 12 percent in Stock T. The betas for these four stocks are 1.03, 1.09, 1.49, and 1.94, respectively. What is the portfolio beta

Answers

Answer:

Portfolio beta = 1.3156

Explanation:

The portfolio beta is a function of the weighted average of the individual stocks betas' that form up the portfolio. To calculate the portfolio beta, we use the following formula,

Portfolio beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N

Where,

w represents the weight of each stock in portfolio

Portfolio beta = 0.34 * 1.03  +  0.18 * 1.09  +  0.36 * 1.49  +  0.12 * 1.94

Portfolio beta = 1.3156

Write a detailed note on Manufacturing Process types and Service process types in process design?

Answers

Answer:

Each of the process are used to the crosses organizational borders.

Explanation:

Process structure of manufacturing:

Job process: It is highly adaptable, scaled operation and structured around particular events. Batch process: It most common used in industries. It is small to large batches. Line process: It is the repetitive process and have modular production with large quantity. Continuous flow chart: It is product focused process. It processed only one item at a time.

Process design: There are three major process of design

Professional service designMass service designService shop design

Which one of these is the best description of a comparative market analysis? It shows what similar homes in the area have recently sold for It shows the list prices of similar homes in the area It’s a guide to the minimum acceptable offer It discloses issues with the home that are known to the seller

Answers

Answer:

It shows what similar homes in the area have recently sold for.

Explanation:

Answer:

The statement "It shows the same types of homes in the area that are presently sold" is considered to be the best description for the comparative market analysis.

Explanation:

A comparative market analysis is a tool that is used by the real estate agent in order to remove the value of the particular property via evaluation of the same types of homes that could be presently sold in a similar area.

For finding the best description regarding the comparative market analysis, we need to determine the following information:

It does not show the list prices of the same types of homes in the area.It does not guide for a minimum acceptable offer.Also, it does not disclose the issues for the income that are aware to the seller.

Therefore we can conclude that the first statement is correct

Learn more about the comparative market analysis here: brainly.com/question/16715737

Which of the following is not a reason why it is important for parties to memorialize their agreements in writing?

a. A party enhances his/her chances of proving that an obligation was undertaken and makes it harder for the other party to deny making the promise.
b. Signing a writing communicates the seriousness of the occasion to the signer.
c. A person's signature on a written contract provides a basis for the contract to be authenticated.
d. Writings are subject to the danger that a person might fabricate terms.

Answers

Answer:

B. singing a writing communicates the seriousness of the occasion to the singer

The reason which is not important for parties to memorialize their agreements in writing is  signing a writing communicates the seriousness of the occasion to the signer. Thus, the correct answer is C.

What is an agreement?

Agreement refers to consent of individual on a particular opinion. When the both parties agree on a concept they will make it in writing. When this agreement enforceable by law it is considered as contract.

The reason it is important top memorialize the agreements in writing are it will act as proof or evidence when formulated in written to be presented in case of obligation.

An agreement will be duly signed by both the parties which shows its authenticity and reliability and avoid any false interpretation of the deal. When the agreement is in writing the violation of terms and conditions is not possible as it clearly mentions the drawbacks of circumstances if any party failed to fulfill the conditions of the agreement.

Therefore, the option C signing a writing communicates seriousness is the appropriate answer.

Learn more about Agreement, here:

https://brainly.com/question/24225827

#SPJ2

You can spend $150 on either a new Kindle or a new pair of boots. If you choose to buy the new kindle, the economic cost of it is:

Answers

Answer:

$300

Explanation:

The economic cost is the sum of implicit cost and explicit cost.The implicit cost is the cost by implication, which is the cost of alternative forgone.

The explicit cost is the actual cost requiring actual cash flow in settling it.

Economic cost=cost of new kindle+cost of alternative forgone(new pair of boots)

Economic cost=$150+$150

The explicit cost is also the cost incurred from accounting point of view

The Sherman Antitrust Act: Multiple Choice was passed in 1800. All of these statements are true. was actively used by President Roosevelt in the early 20th century. no longer applies to business practices today.

Answers

Answer: Was actively used by President Roosevelt in the early 20th century.

Explanation:

The Sherman Act of 1890 was a law passed by Congress to target monopolies in the United States. At the time, Trusts had been in existence. Trusts were in effect monopolies because they worked by getting the largest stockholders to transfer their stock to a single trust and get profits from all companies in the trust. This Trust would then in effect control the industry as a monopoly.

To combat this, the Sherman Act enabled the Federal Government to go against Trusts and dissolve them. This was good news to President Theodore Roosevelt who ruled from 1901 to 1909. Roosevelt hated the anti-competitive tactics of the rich that ripped off the poor. He believed that this would bring about a revolution and he also hated them as the big corporations thought themselves above the law in his assessment.

Using the Sherman Act, he went against them with so much vigor that he earned the nickname, The Trust Buster. He started with a Trust controlled by J.P. Morgan called Northern Securities Company which was dissolved by the Supreme Court after the Attorney General under Roosevelt brought a suit against them.

You short-sell 200 shares of Rock Creek Fly Fishing Co., now selling for $50 per share. You are required to post a 50% margin on the short sale. If your broker requires a 30% maintenance margin, at what price will you get a margin call? (Ignore interests and dividends)
a. $62.50
b. 57.69
c. 56.25
d. 37.50

Answers

Answer:

b. 57.69

Explanation:

Calculation for what price that you will get a margin call

First step

200 shares *$25 per share=$10,000

Second step

Based on the information given we are required to post a 50% margin on the short sale.

Now let find the 50% margin

50% margin =50%*$10,000

50% margin=$5,000

Hence,

$10,000+$5,000=$15,000

Third step

Based on the information given we were told that the broker requires a 30% maintenance margin.

.30=($10,000-200p)/200p

60p=$15,000-200p

260p= $15,000

Hence

$15,000/260

Price= $57.69

Therefore the price that you will get a margin call will be $57.69

On October 10, the stockholders? equity of Sherman Systems appears as follows:
Common stock?$10 par value, 72,000 $ 720,000
shares authorized, issued, and outstanding
Paid-in capital in excess of par value, common stock 216,000
Retained earnings 864,000
Total stockholders equity $ 1,800,000
Prepare journal entries to record the following transactions for Sherman Systems.
1a. Purchased 5,000 shares of its own common stock at $25 per share on October 11.
1b. Sold 1,000 treasury shares on November 1 for $31 cash per share.
1c. Sold all remaining treasury shares on November 25 for $20 cash per share.
2. Prepare the revised equity section of its balance sheet after the October 11 treasury stock purchase.

Answers

Answer: Please find answers in explanation column

Explanation:

Common stock?$10 par value, 72,000

shares authorized, issued, and outstanding                 $ 720,000

Paid-in capital in excess of par value, common stock  $216,000

Retained earnings                                                         $864,000

Total stockholders equity                                             $1,800,000

a)journal entry to record the purchase of shares on Oct 11

Date  Account                                Debit                 Credit

Oct 11 Treasury stock                     $125,000

Cash                                                                $125,000

Calculation

value of the Treasury stock=No.of shares×Value per share

=5,000×$25  =$125,000

b. journal entry to record the sales of treasury shares.

​Date  Account                                Debit                 Credit

Oct 11  Cash                                     $31,000

Treasury stock                                                       $25,000

Paid in capital from the sale of the stock

(31,000 - 25,000)                                                      $6,000

Calculation

Cash =No.of shares×Value per share

=1,000×$31 =$31,000

Treasury stock=No.of shares× purchased value of share

=1,000×$25  =$25,000

1c)journal entry to record the sales of the remaining  treasury shares

​Date  Account                                              Debit                 Credit

Nov 1  Cash                                                $80,000

Paid in capital from the sale of the stock $6,000

Retained earning                                     $14,000

Treasury stock                                                               $100,000

Calculation

Remaining treasury shares = 5000-1000= $4000

Cash =No.of shares×Value per share

=4, 000× 20  =$80 ,000

Treasury stock=No.of shares× purchased value of share

=4,000×$25  =$100,000

recall paid in  capital from sale = $6000

retained earnings = treasury stock - cash- paid in capital= 100,000- 80,000 - 6,000= $14,000

2) Revised equity of the balance sheet to show new  total stockholders’ equity

Account /Particulars                                Amount

Common stock $ 720,000

Paid-in capital   $216,000

Retained earnings         $864,000

less Treasury stock       ($125,000)

Balance                                                    $739,000

Total stockholders equity                      $1,675,000

A company with 99,006 authorized shares of $8 par common stock issued 48,828 shares at $13 per share. Subsequently, the company declared a 2% stock dividend on a date when the market price was $22 a share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?

A. $43,563
B. $21,484
C. $7,812
D. $13,672

Answers

Answer:

$21,484

Explanation:

A company has 99,006 authorized shares of $8 par

The common stock was issued at 48,828 shares at the price of $13 for one share

The company made a 2% dividend declaration

= 2/100

= 0.02

The market price is $22 per share

Therefore, the amount that was transferred from the retained earnings account to the paid-in capital accounts can be calculated as follows

= 48,828 shares × 0.02 × $22

= $21,484

Hence the amount that was moved from the retained earnings account to the paid-in capital accounts as a result of stock dividend is $21,484

whatis the general termfor resources used by a business to produce good or services referred to as

Answers

Answer:

Factors of Production

Heston and Burton, CPA's, currently work a five-day week. They estimate that net income for the firm would increase by $75,000 annually if they worked an additional day each month. The cost associated with the decision to continue the practice of a five-day work week is an example of a(n)

Answers

Answer:

Opportunity cost.

Explanation:

Opportunity cost is an economics term that is used to describe the value or determinant to best forgone alternative in certain situations. In as much as every business model or dealings can never be measured in monetary terms because merit can also be determined through satisfaction gained and actual time spent on the job.

It is sometimes seen to fall in as individual perspective, this is seen as such because it is always different for every person in as much as our personality and different in likes and lifestyle affects it when it boils down to persons.

Economists also tag opportunity cost to be fundamental costs and are generally used for gaining a better understanding of a project.

Suppose when the price of coffee beans goes from $1 to $1.20 per pound, production increases from 90 million pounds of coffee beans to 110 million pounds per year. Using the mid-point method, the percentage change in quantity supplied is: Multiple Choice 20 percent 18 percent 0.6 6.0

Answers

Answer: 20%

Explanation:

Using the midpoint formula, the denominator is an average of the beginning and ending figures;

= [tex]\frac{Q2 - Q1}{Q2 + Q1 /2 } * 100[/tex]

= [tex]\frac{110 - 90}{(110 + 90)/2} * 100[/tex]

= [tex]\frac{20}{100} * 100[/tex]

= 20%

Break-Even Sales and Sales to Realize Income from OperationsFor the current year ended October 31, Friedman Company expects fixed costs of $14,300,000, a unit variable cost of $250, and a unit selling price of $380.a. Compute the anticipated break-even sales (units).unitsb. Compute the sales (units) required to realize income from operations of $2,405,000.units

Answers

Answer:

a. 110,000 units

b. 128,500 units

Explanation:

a. Compute the anticipated break even sales in unit

Break even point in unit = Total fixed cost / Contribution margin

Total fixed cost = $14,300,000

Contribution margin per unit = Unit selling price - Unit variable cost

= $380 - $250

= $130

Break even point in units = $14,300,000 / $130

= 110,000 units

b. Compute sales (units) required to realize income from operations of $2,405,000

Break even point + expected profits = (total fixed costs + expected profits) / Contribution margin

° total fixed cost + expected profits

= $14,300,000 + $2,405,000

= $16,705,000

°contribution margin per unit

= $380 - $250

= $130

Break even point + expected profits in unit

= $16,705,000 / $130

= 128,500 units

ABC Co. and XYZ Co. are identical firms in all respects except for their capital structures. ABC is all-equity financed with $475,000 in stock. XYZ uses both stock and perpetual debt; its stock is worth $237,500 and the interest rate on its debt is 10 percent. Both firms expect EBIT to be $53,000. Ignore taxes.


Requried:

a. Rico owns $23,750 worth of XYZ’s stock. What rate of return is he expecting?

b. Suppose Rico invests in ABC Co and uses homemade leverage. Calculate his total cash flow and rate of return.

c. What is the cost of equity for ABC and XYZ?

d. What is the WACC for ABC and XYZ?

Answers

Answer:

ABC Co. and XYZ Co.

a. Rico owns $23,750 worth of XYZ’s stock. What rate of return is he expecting?

Expected Rate of Return = 12.32%

b. Suppose Rico invests in ABC Co and uses homemade leverage. Calculate his total cash flow and rate of return.

Cash flow from ABC Co. = 11.16% of $23,750 = $2,650.50

Cash outflow from homemade leverage = 10% of $11,875 = $1,187.50

Total cash flows = $1,463 ($2,650.50 - $1,187.50)

Rate of return = $1,463/$11,875 x 100 = 12.32%

c. What is the cost of equity for ABC and XYZ?

Cost of Equity for ABC Co. = Expected Return on Equity

= $53,000/$475,000 x 100

= 11.16%

Cost of Equity for XYZ Co. = Expected Return on Equity

= $29,250/$237,500 x 100

= 12.32%

d. What is the WACC for ABC and XYZ?

WACC for ABC = Cost of Equity = 11.16%

WACC for XYZ = Weighted Cost of Equity + Weighted Cost of Debt

= 11.16% x 50% + 10% x 50%

= 0.0558 + 0.05

= 0.1058

= 10.58%

Explanation:

ABC:

Equity = $475,000

Expected EBIT = $53,000

Returns on Equity = $53,000/$475,000 x 100 = 11.16%

XYZ:

Equity = $237,500

Debt = $237,500

Interest on Debt = 10% = $23,750

EBIT = $53,000

Return for Equity = $29,250 ($53,000 - 23,750)

Return on Equity = $29,250/$237,500 x 100 = 12.32%

RICO is assumed to leverage debt for his shares in ABC Co. to the tune of 50% just as the debt leverage in XYZ Co.

ABC's and XYZ's costs of equity are equal to the expected returns on the equities expressed percentages of the equities.

ABC's and XYZ's WACC or Weighted Average Costs of Capital are the weighted cost of equity plus the weighted cost of debt respectively.

A cash equivalent is: Multiple Choice Another name for cash. Close to its maturity date but its market value may still be affected by interest rate changes.

Answers

Complete Question:

A cash equivalent is:

Group of answer choices

a) Generally is within 12 months of its maturity date.

b) Another name for cash.

c) An investment readily convertible to a known amount of cash.

d) Is not considered highly liquid.

e) Close to its maturity date but its market value may still be affected by interest rate

changes

Answer:

c) An investment readily convertible to a known amount of cash.

Explanation:

In Financial accounting, cash equivalents can be defined as any short term and highly liquid investments which can be easily converted or transformed to a known and standard amounts of cash and as such are subjective to little or no risk of changes in value.

This ultimately implies that, a cash equivalent is an investment readily convertible to a known amount of cash.

Under the statements of cash flow, cash equivalents can be classified broadly into three (3) categories and these are;

1. Operating activities.

2. Financing activities.

3. Investing activities.

Answer:

money

Explanation:

Simon Company’s year-end balance sheets follow.

At December 31 2017 2016 2015
Assets
Cash $26,403 $29,364 $29,991
Accounts receivable, net 73,552 52,436 40,392
Merchandise inventory 96,214 70,676 43,017
Prepaid expenses 8,255 7,944 3,467
Plant assets, net 230,047 214,124 189,133
Total assets $434,471 $374,544 $306,000

Liabilities and Equity
Accounts payable $107,101 $64,564 $40,392
Long-term notes payable secured by
mortgages on plant assets 82,497 84,422 66,273
Common stock, $10 par value 162,500 162,500 162,500
Retained earnings 82,373 63,058 36,835
Total liabilities and equity $434,471 $374,544 $306,000

Required:
a. Compute the current ratio for the year ended 2017, 2016, and 2015.
b. Compute the acid-test ratio for the year ended 2017, 2016, and 2015.

Answers

Answer:

A.Current ratio

2017 191%

2016 248%

2015 289%

B.Acid Test Ratio

2017 101%

2016 139%

2015 183%

Explanation:

A.Computation of the current ratio for the year ended 2017, 2016, and 2015.

Using this formula

Current Ratio =Current Assets / Current Liabilities

2017 2016 2015

Cash $26,403 $29,364 $29,991

Accounts receivable, net

73,552 52,436 40,392

Merchandise inventory 96,214 70,676 43,017

Prepaid expenses 8,255 7,944 3,467

a.Current asset

204,424 160,420 116,867

b.Current Liabilities

Accounts payable $107,101 $64,564 $40,392

Let plug in the formula

(a) / (b) Current Ratio 191% 248% 289%

Therefore the Current ratio are:

2017 191%

2016 248%

2015 289%

B.Computation for acid-test ratio for the year ended 2017, 2016, and 2015.

Using this formula

Acid Test Ratio=Current Assets / Current Liabilities

2017 2016 2015

Cash $26,403 $29,364 $29,991

Accounts receivable, net

73,552 52,436 40,392

Prepaid expenses 8,255 7,944 3,467

a. Current asset

108,210 89,744 73,850

b. Current liabilities

Accounts payable $107,101 $64,564 $40,392

Let plug in the formula

(a) / (b)Acid Test Ratio 101% 139% 183%

Therefore the Acid Test Ratio are:

2017 101%

2016 139%

2015 183%

A project requires an investment of $10 million and offers an annual after-tax cash flow of $1,250,000 indefinitely. If the firm's WACC is 12.5% and the project is riskier than the firm's average projects, should it be accepted?

Answers

Answer:

No.It should not be Accepted.

Explanation:

Weighted Average Cost of Capital (WACC) is the minimum return that is expected from a project. It shows the risk of the entity. If a project gives a return below the WACC, it is regarded as very risk and must not be accepted.

The principle that each World Trade Organization member must accord to all other member countries tariff treatment no less favorable than it provides to any other country is known as the __________ principle.

Answers

Answer:

Most favoured nation principle

Explanation:

Most favoured nation (MFN) clause of the World Trade Organisation requires that when a nation trades with others the concessions, immunities, and privileges granted to one nation should be the the same granted to all WTO members.

It discourages discrimination where one nation in international trade is favoured above another.

For example if Ghana reduces tariff on trades with South Africa it is expected that tariffs to other WTO nations will also be reduced to 3%.

Exceptions to this principle are for developing nations, regional free trade areas, and custom unions.

Selling, general, and administrative expenses were $160,600; net sales were $730,000; interest expense was $17,500; research and development expenses were $76,650; net cash provided by operating activities was $193,800; income tax expense was $16,360; cost of goods sold was $401,500. Required: a. Calculate operating income for the period.

Answers

Answer:

OPERATING INCOME $91,250

NET INCOME $57,390

Explanation:

a. Calculation for operating income for the period.

Net sales $730,000

Less: Cost of goods sold ($401,500)

Gross profit $328,500

Less Selling, general, and administrative expenses ($160,600)

Less: Research and development expenses ($76,650)

OPERATING INCOME $91,250

b. calculation for the net income for the period.

Net sales $730,000

Less: Cost of goods sold ($401,500)

Gross profit $328,500

Less Selling, general, and administrative expenses ($160,600)

Less: Research and development expenses ($76,650)

OPERATING INCOME $91,250

Less: Interest expense ($17,500)

Less: Tax expense ($16,360)

NET INCOME $57,390

Therefore the OPERATING INCOME will be $91,250 while the NET INCOME will be $57,390

The FI Corporation’s dividends per share are expected to grow indefinitely by 5% per year. a. If this year’s year-end dividend is $8 and the market capitalization rate is 10% per year, what must the current stock price be according to the DDM? b. If the expected earnings per share are $12, what is the implied value of the ROE on future investment opportunities? c. How much is the market paying per share for growth opportunities (i.e., for an ROE on future investments that exceeds the market capitalization rate)?

Answers

Answer:

a)

P₀ = Div₁ / (Re - g)

P₀ = current stock price = ?Div₁ = next dividend = $8Re = equity cost = 10%g = constant growth rate = 5%

P₀ = $8 / (10% - 5%) = $8 / 5% = $160

b)

EPS = $12

Return on equity (ROE) = g / b

b = retention rate = 1 - payout ratio = 1 - ($8/$12) = 0.333

g = 5%

ROE = 5% / 0.333 = 15%

c)

Present value of growth opportunity (PVGO) = P₀ - EPS/Re

P₀ = $160EPS = $12Re = 10%

PVGO = $160 - $12/10% = $160 - $120 = $40 per share

Other Questions
A 23 year old woman is dropped off by her boyfriend after an unknown overdose. You notice that she is has very large pupils and is sweating profusely. Her respiratory rate, blood pressure and heart rate are elevated. Which of the following is the most likely agent to have caused her symptoms?A. Jimson weedB. CocaineC. HeroinD. Insulin The largest population growth between now and 2020 will be seen in children ages 0 through four. True or False How many moles of gold are equivalent to 1.204 1024 atoms? 0.2 0.5 2 5 PLEASE HELP ME WITH THIS QUESTION ANYTHING HELPS! Evaluate -3(8).I know the answer is -24 but I dont know who to work it out, can someone please help me One of two small classrooms is chosen at random with equally likely probability, and then a student is chosen at random from the chosen classroom. Classroom #1 has 5 boys and 11 girls. Classroom #2 has 15 boys and 9 girls. What is the probability that Classroom #2 was chosen at random, given that a girl was chosen? Your answers should be rounded to 4 digits after the decimal. a hotel manager wants miriam to tile their lobby using the dame design she created for Mr.Rivera.The lobby measures 45 feet by 45 feet. he wants the outer edge to be the same color as the center tile. will this occur ? justify your answer Which one of the following actions would make the maxima in the interference pattern from a grating move closer together? A. Increasing the number of lines per length. B. Decreasing the number of lines per length. C. Increasing the distance to the screen. D. Increasing the wavelength of the laser. Factorise : x-17x+ 60 Step by Step Kevin is described by friends as having a great imagination and being willing to try anything once. Given this description, Kevin would most likely score very high on a scale of Group of answer choices Lee watches TV for 4 hours per day. During that time, the TV consumes 150 watts per hour. Electricity costs (12 cents)/(1 kilowatt-hour). How much does Lee's TV cost to operate for a month of 30 days? the angle theta is in the second quadrant and cos theta = -2/29 determine possible coordinates for point P on the terminal arm of theta a. (2,5) b. (-2,29) c. (-5,2) d. (-2,5) What helps to ensure that the meaning of prose is clear to the reader?A. Complex sentencesB. Reader responseC. Several points of viewD. Careful organization The equation| x + 4| = x has solution a. X = -2 b. X = 2 c. X = -4 d. X = 4 S100A8 sex chromosome? yes or no Compute the flux of curl(F) through the part of the paraboloid z = x 2 + y 2 that lies below the plane z = 4 with upward-pointing unit normal vector and F = h3z,5x,2yi. Best Buy is currently selling the latest model of the iPadPro for $549.99. Since you are an employee there, youreceive a 5% discount. How much will the iPad Pro costyou if you use your employee discount (before taxes). Choose some specific types of changes you would like to see happen in groups or organizations with which you are familiar. Imagine that you were to try to bring about these changes. What sources of resistance should you anticipate? How would you manage the resistance? Which statement best describes the fossil record?O It is a complete record.O It is an incomplete record.Most fossils are older than five billion years.All fossils are younger than six hundred years. Question #2: Which sentence is a run-on sentence? A. Although Jack was inexperienced, the other players had helped him learn the game. B. His brother played baseball before, and he was teaching Jack the basics of the game. C. Jack was trying out for the baseball team it was his first time ever playing the game. D. Jack was excited to learn the game; therefore, he was eager every time he practiced.