Answer:
D automobiles
Explanation:
In economic theory, a durable good is defined as that product (or service) that once acquired can be used a large number of times over time. Durable goods are those reusable goods and, although they may end up being spent, they are not consumed quickly as non-durable goods. It is argued that durable goods are those that provide the consumer with a flow of service for a relatively long time, such as automobiles, furniture, homes, etc. It is not necessary that a durable good be luxurious, for example an armchair is a durable good. On the other hand, non-durable goods are depleted or consumed completely in the act of satisfying a need, such as food, water or electricity. It should be noted that one of the fundamental characteristics of durable goods is that they are bought today, while the flow of their services extends over time and that the benefits they yield in a period are proportional to the number of units that are removed from the stock, characteristics that resemble it with the investment in productive capital and is defined as a good that is consumed immediately, with a use or a life time of less than 3 years.
Final answer:
The correct answer is D. automobiles. Durable goods such as automobiles fluctuate more in sales compared to nondurables due to changes in economic conditions, while nondurable goods like food and medicine are necessities with more stable sales patterns.
Explanation:
Durable goods such as automobiles, furniture, and appliances will fluctuate more widely in sales over a business cycle than nondurables such as food and medicine which are necessities. In this context, the correct answer is D. automobiles.
When discussing consumers, goods & services, we refer to economic products that are transferable and useful to individuals or entities. As consumers, we purchase these products to fulfill our needs. Consumer goods are intended for individual use and are classified into durable goods, like automobiles, and nondurable goods, such as food products and gasoline. Durable goods tend to experience larger fluctuations in sales during the business cycle, affected significantly by changes in economic conditions like disposable income and consumer confidence.
Cain Inc. reports net income of $15,600. Its comparative balance sheet shows the following changes: accounts receivable increased $6,600; inventory decreased $8,600; prepaid insurance decreased $1,600; accounts payable increased $3,600 and taxes payable decreased $2,600. Compute cash flows from operations using the indirect method.
Answer:
$20,200
Explanation:
Amount in $
Net income 15,600
Increase in receivables (6,600)
Decrease in inventory 8,600
Decrease in prepaid insurance 1,600
Increase in account payable 3,600
Decrease in tax payable (2,600)
Net cash flows from operations 20,200
The cash flows from operations for Cain Inc. using the indirect method is computed to be $20,200 by adjusting net income with the changes in current assets and liabilities.
Explanation:The question asks about computing the cash flows from operations for Cain Inc., using the indirect method. Starting with the net income, we need to adjust for changes in current assets and liabilities. The steps are as follows:
Start with net income: $15,600 Adjust for increases in current assets, which are uses of cash, i.e., account receivables (+$6,600) Adjust for decreases in current assets, which are sources of cash, i.e., inventory (-$8,600), prepaid insurance (-$1,600) Adjust for increases in current liabilities, which are sources of cash, i.e., accounts payable (+$3,600) Adjust for decreases in current liabilities, which are uses of cash, i.e., taxes payable (-$2,600)
The cash flows from operations would therefore be $15,600 - $6,600 + $8,600 + $1,600 + $3,600 - $2,600 = $20,200.
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Common components of an SLA include which of the following:
a. MTBF
b. Uptime percentage
c. Throughput
d. None of the above
e. All of the above
Answer:
d. None of the above
Explanation:
The Service Level Agreement (SLA) is the term of the ITIL methodology that denotes a formal agreement between the customer of the service and its provider, containing a description of the service, the rights and obligations of the parties and, most importantly, the agreed level of quality of the service.
A well-defined and typical SLA will contain the following components:
1) Type of service provided: indicates the type of service and any additional information about the type of service provided. If connected to an IP network, the type of service will describe functions such as the operation and maintenance of network equipment, the bandwidth of the connection that must be provided, etc.
2) The required level of service performance, especially its reliability and responsiveness: a reliable service is one that experiences minimal disruptions over a period of time and is almost always available. The service with good responsiveness will perform the desired action immediately after the client requests it.
3) Monitoring process and service level reports. This component describes how performance levels are monitored and controlled. This process involves collecting statistics of various types, how often these statistics will be collected, and how customers will gain access to these statistics.
4) Steps for reporting problems using the service: This component will indicate the contact information by which the problem should be reported, and the order in which the details of the problem should be reported. The contract will also include a period of time during which the problem will be considered, as well as until the moment the problem is resolved.
5) Timing of response and resolution of the problem. Response time is the period during which the service provider begins investigating the problem. A problem resolution time period is a period of time during which a current maintenance problem will be resolved and fixed.
6) Consequences for a non-fulfilling service provider: if the provider is not able to fulfill the requirements specified in the SLA, the service provider will have to face the consequences for the same. These consequences may include the client’s right to terminate the contract or demand compensation for losses incurred by the client as a result of the denial of service.
Wynn Company offers a set of building blocks to customers who send in 3 UPC codes from Wynn cereal, along with 50 cents. The blocks sets cost Wynn $1.10 each to purchase and 60 cents each to mail to customers.
During, 20XX, Wynn sold 1,200,000 boxes of cereal. The company expects 30% of the UPC codes to be sent in. During 20XX, 120,000 UPC codes were redeemed.
Prepare Wynn's Dec 31, 20XX, adjusting entry.
Answer:
the entry is a provision in expenses: 96,000 debit (expenses provisions), 96,000 credit (liabilities accruals)
Explanation:
The total UPC codes that Wynn Company expects to redeem is 360,000. If 120,000 were redeemed, that 240,000 are pending to redeem. In terms of blocks, it means 80,000 pending to purchase and send to customers (240,000/3=80,000). The total net cost for those blocks is $96,000, as follows: total cost = 1.1+0.6-0.5=1.2 and then multiply for the number of blocks: 80,000*1.2 = $96,000. Finally, the entry is a provision in expenses: 96,000 debit (expenses provisions), 96,000 credit (liabilities accruals)
Adjusting entries are considered as a planned part of the accounting process, in order to adjust the extra amount of transaction.
What are Adjusting Entries?
Adjusting entries are essential toward the finish of a bookkeeping period to bring the record exceptionally.
Adjusting Entry:-
Expenses provisions 96,000
To liabilities accruals 96,000
(Being adjusting entry recorded)
Working Note:-
The total UPC codes that Wynn Company expects to redeem is 360,000. If 120,000 were redeemed, that 240,000 are pending to redeem.
In terms of blocks, it means 80,000 pending to purchase and send to customers (240,000/3=80,000).
The total net cost for those blocks is $96,000, as follows: total cost = 1.1+0.6-0.5=1.2 and then multiply for the number of blocks: 80,000*1.2 = $96,000.
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Suppose the market demand for pizza is given by:
Qd = 300 - 20P
Qs = 20P - 100 where P = price (per pizza).
1. Suppose the price of hamburgers, a subsitute for pizza, doubles. This leads to a doubling of the demand for pizza. (At each price, consumers demand twice as much pizza as before.) Write the equation for the new market demand for pizza.
Answer:
QD=600-40P
Explanation:
The old equation for the demand for pizza is Qd = 300 - 20P
Now because of an increase in the price of a substitute the demand for pizza doubles, in order to find the new equation will multiply the old equation by 2 because the demand has doubled.
300*2=600
20P*2=40P
New equation = 600-40P
We can check whether our new equation is correct or not.
If we assume the price of pizza to be 10 and then put 10 in both the equations the quantity from equation 2 should be double that of equation 1.
Equation 1= 300-(20*10)
=300-200=100
Equation 2 = 600-(40*10)
=600-400=200
AS we can see the quantity doubled on the same price which means our equation is correct.
The new equation for the market demand for pizza comes to be Qd = 600 - 40P, assuming that the price of hamburgers doubles which leads to a doubling of the demand for pizza.
Explanation:The original equation for the demand for pizza is Qd = 300 - 20P. According to the situation mentioned, if the price of hamburgers (a substitute for pizza) doubles, that leads to a doubling of the demand for pizza.
This means that at every price, consumers are now demanding twice as much pizza as they were before. So the new equation for the market demand for pizza becomes Qd = 2 * (300 - 20P), which simplifies to Qd = 600 - 40P.
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Andre Candess manages an office supply store. One product in the store is computer paper. Andre knows that 10,000 boxes will be sold this year at a constant rate throughout the year. There are 250 working days per year and the lead-time is 3 days. The cost of placing an order is $30, while the holding cost is $15 per box per year. How many units should Andre order each time to minimize his annual inventory cost?
Answer:
Annual demand (D) = 10,000 boxes
Ordering cost (Co) = $30
Holding cost (H) = $15
EOQ = √2DCo
H
EOQ = √2 x 10,000 x $30
$15
EOQ = 200 units
Explanation:
EOQ is a function of square root of 2 multiplied by annual demand and ordering cost per order divided by holding cost per item per annum. EOQ is the quantity of stock that minimises the total inventory cost. In this case, EOQ equals 200 units
Andre should order approximately 632 boxes each time to minimize his annual inventory cost.
Explanation:To minimize his annual inventory cost, Andre should order a quantity that balances the cost of placing an order and the holding cost. The Economic Order Quantity (EOQ) formula can be used to calculate the optimal order quantity. EOQ formula is:
EOQ = √(2DS/H)
Where:
D is the annual demand (10,000 boxes)S is the cost of placing an order ($30)H is the holding cost per box per year ($15)Plugging in the values:
EOQ = √(2 x 10,000 * $30 / $15) = √400,000 = 632.45
Therefore, Andre should order approximately 632 boxes each time to minimize his annual inventory cost.
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What type of good is often provided by the government because it is hard to get people to voluntarily contribute their fair share of the expense?
a. private goodsb. club goodsc. common-resource goodsd. public goodse. government goods
Answer:
Option (D) is the right answer.
Explanation:
According to the scenario, the most appropriate answer is option (D) because public goods are given by the government and It can be used by everyone at a time and without any cost.
While the other options are incorrect because of the following reasons:
Private goods are not given by the government. Club goods can be given by the government but at a cost. Common resource goods are of government and can not be used by everyone. Government goods can be used by the government only.Equipment was purchased for $152000. Freight charges amounted to $5000 and there was a cost of $14000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $38000 salvage value at the end of its 5-year useful life. Depreciation Expense each year using the straight-line method will be A. $26600. B. $34200. C. $26000. D. $22800.
Answer:
The correct answer is A.
Explanation:
Giving the following information:
Equipment was purchased for $152000. Freight charges amounted to $5000 and there was a cost of $14000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $38000 salvage value at the end of its 5-year useful life.
First, we need to calculate the total cost of the equipment.
Total cost= purchasing price + freight + cost required to put the asset to work
Total cost= 152,000 + 5,000 + 14,000= $171,000
Now, we can determine the depreciation cost:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (171,000 - 38,000)/5= $26,600
A firm practicing third-degree price discrimination may:
I. segment its customers by age, such as offering senior citizen discounts.
II. charge customers living in certain zip codes a higher price than customers living in other locations.
III. initially charge high prices and then reduce the price over time to sell to the more price-sensitive consumers.
(A) I
(B) I and II
(C) II
(D) I, II, and III
Answer:
(B) I and II
Explanation:
Price discrimination is when a producer charges different prices for his good or service.
Third degree price discrimination is when consumers are charged different prices for the same good due to certain factors. E.g. age, gender, location.
Second degree price discrimination is when consumers who buy in bulk are given discounts.
First price discrimination is when consumers are charged different prices according to their willingness to pay. Example of first price discrimination is initially charging high prices and then reducing the price over time to sell to the more price-sensitive consumers.
I hope my answer helps you.
Atlas Company plans to sell 145,000 units in November and 190,000 units in December. Atlas's policy is that 15% of the following month's sales must be in ending inventory. On November 1, there were 21,750 units in inventory. It takes 35 minutes of direct labor time to make one unit. Direct labor wages average $19 per hour. Variable overhead is applied at the rate of $7 per direct labor hour. Fixed overhead is budgeted at $60,500 per month. What is the budgeted production in units for November?
a. 121,000 units
b. 151,750 units
c. 100,000 units
d. 125,600 units
e. 140,000 units
Answer:
Option (b) is correct.
Explanation:
Given that,
Sales = 145,000 units
Desired ending inventory = 28,500 units
Beginning inventory = 21,750
Budgeted production in units for November:
= Sales + desired ending inventory - Beginning inventory
= 145,000 units + (190,000 × 15%) - 21,750
= 145,000 units + 28,500 - 21,750
= 151,750 units
1. Differentiate between a group and a team.
2. Research the Ringelmann Effect. How does it contribute to our modern-day understanding of team dynamic?
3. Discuss the characteristics of a highly effective team.
4. What are some of the barriers to team work?
Groups comprise individuals with varying objectives, while teams are cohesive units with a common goal. The Ringelmann Effect explains reduced individual productivity as team size grows, influencing our grasp of team dynamics. Effective teams are characterized by cohesion and clear roles, while poor communication and leadership can impede teamwork.
Understanding Groups and Teams
To understand the difference between groups and teams, it’s essential to recognize that while all teams can be considered groups, not all groups are teams. A group is a collection of individuals who come together to achieve a particular task or goal but may have different objectives and leadership. In contrast, a team is a cohesive unit with a high degree of interdependence, focused on achieving a common goal, often with shared leadership and accountability.
The Ringelmann Effect and Team Dynamics
The Ringelmann Effect is a phenomenon where individual members of a group become less productive as the size of the group increases. This understanding contributes to our modern-day understanding of team dynamics by highlighting the potential for social loafing and reinforcing the need for clear individual responsibilities within teams.
Characteristics of Effective Teams
A highly effective team often displays strong group cohesion, collective efficacy, clear roles and tasks, and the ability to navigate through the stages of group development effectively. They also show a high degree of adaptability, communication, and mutual support.
Barriers to Teamwork
Common barriers to teamwork include poor communication, lack of clear direction or goals, interpersonal conflicts, and inadequate leadership. Understanding these can help teams design strategies to overcome them, fostering greater collaboration and productivity.
Spade Agency separates its accounts receivable into three age groups for purposes of estimating the percentage of uncollectible accounts. In addition, the balance of Allowance for Uncollectible Accounts before adjustment is $6,500 (credit).Accounts not yet due = $36,000; estimated uncollectible = 4%.Accounts 1–60 days past due = $21,000; estimated uncollectible = 25%.Accounts more than 60 days past due = $16,000; estimated uncollectible = 50%.Required:a. Compute the total estimated un-collectible accounts.b. Record the year-end adjustment for estmated un-collectable accounts.
Answer:
a. total estimated uncollectible accounts is $21,190
b. to entry the adjustment, we have to debit bad debt expense and credit allowance for doubtful accounts in the amount of $14,690
Explanation:
a. to compute the estimated uncollectible accounts, we have to multiply the specific % to the accounts receivable plus the beginning balance;
•Accounts not due
$36,000 x 4% = $1,440
•Accounts 1 - 60 days past due
$21,000 x 25% = $5,250
•Accounts more than 60 days past due
$16,000 x 50% = $8,000
So the total uncollectible accounts would be; $6,500 + $1,440 + $5,250 + $8,000 = $21,190
b. to record the year-end adjustment of the uncollectible accounts, we have to debit bad debt expense and credit allowance for doubtful accounts in the amount of $14,690. This figure is the uncollectible amount we computed earlier based on the aging.
Think of a major, well-known business; a prominent not-for-profit organization; and a state, provincial, or national government. For each, describe in two or three sentences a strategically appropriate investment project that the organization might be evaluating
Answer:
Consider the following explanation
Explanation:
A major well known Business - Apple - It should invest more in its emerging economies customer care. Many people in EMs are scared o buying an apple product because of the pathetic service it provides in these markets. This would really help Apple in pushing its sales and compete with EM brands like Mi. This project will correct Apple's Error of Omission in the Emerging markets sales impetus.
Non Profit - National Volunteer Corps India (RSS) - They should launch an educational campaign to deliberate on the European Colonizers' version, and the Communists version of Indian history. The debate on Indian ancestry is very critical to understanding ot just India's past, but also the position of Indic philosophical systems in philosophy.
National Economy - US economy would stand to gain a lot if the government undertook an infrastructure revamp program. Maintenance work on roads, highways, waterways, utilities has been pending for some time in US now.
A steel hanger is bolted to a steel frame using two 5/8 in-18 UNF grade 7 bolts. The thickness of the hanger at the bolt is identical to that of the frame, 1 inch each. A vertical load varying between 0 and 40,000 lb is applied at the hanger. The bolts are initially tightened to 75% of its full proof load. The length of the bolt is two threads beyond the nut. Determine the factors'of safety against yielding. overloading and joint separation, respectively. And, estimate the torque necessary to develop the preload.
Answer:
Explanation:
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Job 303 includes direct materials costs of $ 540 and direct labor costs of $ 400. If the predetermined overhead allocation rate is 50% of direct labor cost, what is the total cost assigned to Job 303?
Answer:
Total cost will be $1140
Explanation:
We have given direct material cost = $540
Direct labor cost = $400
And overhead allocation is 50 % of direct labor cost
So overhead allocation = 50 % of $400 = $200
We have to find the total cost assigned to the job
So total cost = direct material cost + direct labor cost + overhead allocation = $540 + $400 + $200 = $1140
So total cost will be $1140
The total cost assigned to Job 303, which includes direct materials, labor and overhead costs, is calculated as $1140.
Explanation:To calculate the total cost assigned to Job 303, you need to combine the direct materials costs, direct labor costs and the overhead cost which is calculated based on a predetermined overhead allocation rate. The overhead allocation rate is 50% of the direct labor cost.
Therefore, the overhead cost will be 50% of $400, which equals to $200. Hence, the total cost for Job 303 can be calculated as follows: $540 (direct materials) + $400 (direct labor) + $200 (overhead allocation) = $1140.
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A company is considering the purchase of a new machine for $54,000. Management predicts that the machine can produce sales of $16,600 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhead totaling $7,400 per year including depreciation of $4,600 per year. The company's tax rate is 40%. What is the payback period for the new machine?
a. 6.28 years.
b. 26.47 years.
c. 11.74 years.
d. 5.34 years.
e. 3.25 years.
Answer:
Payback Period = 5.34 years
so correct option is d. 5.34 years
Explanation:
given data
purchase machine = $54,000.
sales = $16,600
time = 10 year
Expenses = $7400
depreciation = $4,600 per year
tax rate = 40%
to find out
payback period for the new machine
solution
we get here earning before tax that is express as
earning before tax EBT = Sales - Expenses .............1
put her value we get
earning before tax EBT =$16600 - $7400
EBT = $9260
so we get here Tax for 40% that is
tax for 40% = 0.40 × $9260
tax for 40% = $3680
and
so net income = $5520
and
Cash Flow = net income + depreciation
Cash Flow = $5520 + $4600
Cash Flow = $10120
so Payback Period will be her as
Payback Period = Investment ÷ Annual Cash Flow ...................2
Payback Period = [tex]\frac{54000}{10120}[/tex]
Payback Period = 5.34 years
so correct option is d. 5.34 years
Final answer:
To calculate the payback period for the machine, subtract expenses from sales, add back non-cash depreciation, adjust for taxes, and divide the initial investment by the resulting after-tax cash flows. The calculated payback period is 9.78 years, which suggests a typo in the given options as none of them match this result.
Explanation:
The payback period is the time it takes for a company to recover its investment in an asset through cash flows. To calculate the payback period for the new machine, we first need to calculate net annual cash flows. Deduct the expenses, including direct materials, labor, and overhead from the annual sales. However, since depreciation is a non-cash expense, we need to add it back to get the pre-tax cash flows:
Annual Sales - (Direct Materials + Direct Labor + Overhead - Depreciation) = Net annual cash flows
Then we adjust it for taxes:
Net annual cash flows x (1 - Tax Rate) = After-tax cash flows
To find the payback period, we divide the initial investment by the after-tax cash flows:
$54,000 \div ([$16,600 - $7,400 + $4,600] x (1 - 0.40)) = Payback Period
The calculation yields $54,000 \div ($9,200 x 0.60) or $54,000 \div $5,520, which nicely equals 9.78 years. It seems there might be a typo in the given options, as none of them accurately reflects this calculation. However, when comparing this result with the provided options, 9.78 years does not match, so the assumption about a typo seems correct, and we may have to double-check the figures or the method of calculation.
Bell Inc. took a physical inventory at the end of the year and determined that $780,000 of goods were on hand.
In addition, Bell, Inc. determined that $60,000 of goods that were in transit that were shipped f.o.b. shipping point were actually received two days after the inventory count and that the company had $90,000 of goods out on consignment.
What amount should Bell report as inventory at the end of the year?
a. $780,000.b. $840,000.c. $870,000.d. $930,000.
Answer:
Option (c) is correct.
Explanation:
Given that,
Physical inventory at the end of the year and determined = $780,000 of goods were on hand
Shipped f.o.b. shipping point = $60,000
Goods out on consignment = $90,000
Bell report as inventory at the end of the year as follows:
= Physical inventory determined + Goods on consignment
= $780,000 + $90,000
= $870,000
Harrison's Supply Co. suffered a fire loss on April 20, 2013. The company's last physical inventory was taken January 30, 2013, at which time the inventory totaled $220,000. Sales from January 30 to April 20 were $600,000 and purchases during that time were $450,000. Harrison's consistently reports a 30% gross profit. The estimated inventory loss is:a. $490,000. b. $238,000. c. $250,000. d. None of these
Answer:
c. $250,000
Explanation:
The computation of the estimated inventory loss is shown below:
= Total amount of inventory + purchase made during the year - costs of goods sold
= $220,000 + 450,000 - $420,000
= $670,000 - $420,000
= $250,000
The cost of goods would be
= Sales - sales × gross profit margin
= $600,000 - $600,000 × 30%
= $600,000 - $180,000
= $420,000
Which of the following is an example of strategic entry deterrence?
A. building excess capacity
B. price reductions
C. economies of scale
D. both b and c
E. both a and b
Answer:
E. both a and b
Explanation:
Strategic entry deterrence refers to any act that prevents potential market participants from competing in a particular market. Such actions or barriers to entry may include rival capture, product differentiation for extensive product development, capacity building to lower unit costs, and predatory pricing. While many entry barriers can be created, time can also be a barrier to entry because potential marketers are less likely to enter the market if it takes longer to complete the task. they spend and lose their profits over time. Entrance barriers are sometimes considered anti-competitive and may be subject to different competition laws.
One way to block access to the new entrants is to produce products at a lower price than the monopoly level. This not only reduces profitability, but also makes them less attractive to participants, but also means that the current person is more likely to meet market demand and to leave any potential bidder in the market.
The current company has the advantage of being the first carrier, so it can act in a way that it knows will affect the decision of the participant. Assuming incomplete data (ie, the costs of the current firm are known only) can only make assumptions about the cost structure of the participant with price and output levels. Therefore, duty people can use them as a signal to any potential bidder.
An officer trying to strategically hinder access may do so by trying to minimize market entry. Expected revenues depend heavily on the number of customers waiting for the participant - so one way to prevent access is the "shutting-down" consumer.
Identify the characteristics that have enabled Singapore to become one of the world’s most prosperous nations. Correct Answer(s) rich mineral deposits self-sufficiency in regard to water, food, and energy stable financial system strategic location high literacy rate strong agricultural sector Incorrect Answer(s)
Answer:
The answers are : Stable financial system; Strategic location; High literacy rate.
Explanation:
Singapore is a small island, highly populated country without much natural resources and little resources are paid to agricultural sector and energy sector thus lack of self-sufficiency in regard to water, food (due to limited land, lack of water supply and high labor cost). Currently, more than 40% of the country's water consumption are exported from Malaysia.
However, thanks to its strategic location lying in the center of the trade flow between the America, Europe, Middle East - Africa and Asia and the heart of Asia; its stable financial system which is one of the financial centers of Asia and the world due to its pretty open economy; its highly-educated citizens ( according to UNESCO Singapore literacy rate has been going up from nearly 83% in 1980 to more than 97% in 2018), the country is among one of the most prosperous countries in the world.
Singapore is a prosperous nation due to its strategic location, high literacy rate, stable financial system, and high-tech manufacturing. It has formed beneficial trade relationships and maintains a strict, business-friendly environment. Despite a lack of natural resources, Singapore's focus on profitable manufacturing and its status as a distribution hub make it a leading economy in Southeast Asia.
The characteristics that have enabled Singapore to become one of the world's most prosperous nations include its strategic location, a high literacy rate, a stable financial system, and high-tech manufacturing as a main method of wealth generation. Despite lacking rich mineral deposits and self-sufficiency in water, food, and energy, Singapore has made good strategic use of its geographic location by acting as a hub for the distribution of goods.
The country has also forged economic ties in a trade triangle with neighboring Malaysia and Indonesia, where it receives raw materials and labor in exchange for technical know-how and financial support. This has helped Singapore to emerge as a high-income, 100-percent urban economy that thrives on the processing of raw materials and high-tech manufacturing, making it an economic power in Southeast Asia.
Consider brand names and advertising, and then choose the correct statement.
A. Suppliers of advertising face two interdependent supply curves.
B. Firms that produce advertising trade in a "two-sided market".
C. The advertising market produces the efficient quantity of advertising and brand names.
D. Brand names give producers an incentive to create below-standard products after customers become loyal.
Answer:
B. Firms that produce advertising trade in a "two-sided market".
Explanation:
It is a business model for economic exchange between two distinct user groups.
AA-rated bank estimates its losses of 1% of outstanding loans on average per year. The 99.9% worst-case loss if 5% of outstanding loans. Its spread between the cost of funds and the interest charged is 2.5%. You are given sufficient information to find Risk-Adjusted Return on Capital. a. True b. False
Answer: False
Explanation:
The Risk adjusted Return on capital is used by banks to know the level of risk the bank may fall into based on the loan they give out to the borrowers of the loan. The bank is expected to engage in responsible risk management. The formula for calculating the risk adjusted return on capital is
Cost - Expected losses + income from capital / Economic or total capital
In this question we are given the interest charged to be 2.5%, we are given the expected losses to 1% based on industry average. But we are not given the actual figure of the loan lent out, in which to calculate the 5% of the loan which is still outstanding, and we are not given the income from the capital. We are not given the cost of the fund. Therefore, we are not given sufficient information to find Risk -Adjusted Return on capital.
In this type of control system, the master budget is based on a single prediction for sales volume, and the budgeted amount for each cost essentially assumes that a specific amount of sales will occur: Select one: a. Sales budget. b. Standard budget. c. Flexible budget. d. Fixed budget. e. Variable budget.
Answer:
(e) Variable budget
Explanation:
A budget is a money related arrangement for a characterized period, regularly one year. It might likewise incorporate arranged deals volumes and incomes, asset amounts, expenses and costs, resources, liabilities and incomes
Variable budget plan, is monetary arrangement of evaluated incomes and costs dependent on the current real measure of yield.
The board frequently utilizes variable spending plans before a period to foresee both a best case and more regrettable case situation for the up and coming bookkeeping period.
Determine which reason for downward-sloping demand best explains each examples below. Drag the reason to the example to complete the problem. When a new cupcake store in your town sells giant cupcakes for $5 each, you buy one. When the store puts cupcakes on sale for $2.50, you buy two. Your favorite cereal is Frootie-Os. When it is on sale for $2 a box, you buy one. When a box of Frootie-Os is selling at its regular price of $3.50, you buy the generic store brand instead. Every Friday. you order a pizza for dinner. The first two slices are delicious, and you devour them. The third and fourth slices take you a bit longer to eat, and you do not enjoy them as much. You do not eat a fifth slice. Diminishing Substitution marginal Income effect effect utility
Answer:
Income effect
Substitution effect
Diminishing marginal utility
Explanation:
The demand curve in downward sloping. The demand curve shows that the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
The income effect says that if prices fall, a consumer would be able to buy more quantities of the good as the consumer's real income rises. Conversely, if prices rise , the consumer would be able to buy less quantities of the good as the consumer's real income falls.
In the question ,when the price of cupcakes fall, the quantities purchased increases.
Substitution effect assumes that If the prices of a good falls, consumers would substituite the consumption of other goods for the good whose price fell. As a result, the quantity demanded of the good whose price falls increases. Conversely, if the price of a good rises, consumers would substituite the consumption of the good for cheaper goods.
In the question, when the price of the cereal increases, the consumer substituites the consumption of the cereal for a generic cereal.
Diminishing marginal utility states that as more and more of the quantity of a good is consumed ,the level of utility derived from the consumption of the good falls and the quantity consumed falls.
I hope my answer helps you.
Jones Corp. reported current assets of $199,000 and current liabilities of $140,000 on its most recent balance sheet. The working capital is:______a. 142%.b. 70%.c. ($59,000).d. $59,000.e. 42%.
Answer:
It is $59,000(D)
Explanation:
Net Working Capital = Current Assets – Current Liabilities
=$199,000-$140,000
=$59,000
Working Capital is the money available to fund a company’s day-to-day operations.
If the current assets are greater than current liabilities, we have positive net working capital and vice-versa.
Option (A) False. This is working capital percentage -i.e [(current assets/Current Liabilities) *100%]
Option(B) False.
Option(C) False. Net working capital will only be negative when current liabilities are greater than current assets.
Option(D) True.
Option(E) False
On June 1, 2018, Top Performance Cell Phones sold $ 26 comma 000 of merchandise to Alright Trucking Company on account. Alright fell on hard times and on July 15 paid only $ 7 comma 500 of the account receivable. After repeated attempts to collect, Top Performance finally wrote off its accounts receivable from Alright on September 5. Six months later, March 5, 2019, Top Performance received Alright's check for $ 18 comma 500 with a note apologizing for the late payment.
REQUIREMENTS
1. Journalize the transactions for High Performance Cell PhonesHigh Performance Cell Phones using the direct write-off method. Ignore Cost of Goods Sold.
2. What are some limitations that High Performance will encounter when using the direct write-off method?
Answer:
1.
June 1 2018
Dr Account Receivable 26,000
Cr Sales 26,000
( to record sales on account to Alright trucking)
July 15 2018
Dr Cash 7,500
Cr Account Receivable 7,500
( to record cash collection from Alright trucking)
Sep 5 2018
Dr Bad Debt Expenses 18,500
Cr Account Receivable 18,500
( to record bad debt expenses from Alright trucking's receivables)
March 5,2019
Dr Account Receivables 18,500
Cr Bad Debt Expenses 18,500
( to reverse the bad debt record of Alright trucking's receivables)
Dr Cash 18,500
Cr Account Receivable 18,500
( to record cash collection from Alright trucking)
2.
The limitations of direct written-off method is Bad Debt expenses is only recorded when it is incurred rather than when it is highly possible to be foreseen and estimated.
As a result, Account Receivables is tend to be recorded at the higher balance and Bad Debt expenses is recorded with the lack of timely manner ( that is, period after it is incurred) and thus does not match with the period the originating Sales is earned.
Explanation:
National Warehousing just announced it is increasing its annual dividend to $1.18 next year and establishing a policy whereby the dividend will increase by 3.25 percent annually thereafter. How much will one share of this stock be worth 8 years from now if the required rate of return is 9.5 percent?
Answer:
$24.38
Explanation:
The computation of the one share of worth is shown below:
= Eight-year dividend ÷ (Required rate of return - growth rate)
where,
Next year dividend for eight-year s would be
= Annual dividend × (1 + growth rate)^number of years
= $1.18 × (1 + 3.25%)^8
= $1.18 × 1.291577535
= $1.524061492
The other items rate would remain the same
Now placing these values to the formula above
So, the price would equal to
= $1.524061492 ÷ (9.5% - 3.25%)
= $24.38
Here is the income statement for Skysong, Inc.
SKYSONG, INC. Income Statement For the Year Ended December 31, 2022
Sales revenue $404,100
Cost of goods sold 234,000
Gross profit 170,100
Expenses (including $16,700 interest and $26,400 income taxes) 83,500
Net income $ 86,600
Additional information:
1. Common stock outstanding January 1, 2022, was 24,700 shares, and 37,100 shares were outstanding at December 31, 2022.
2. The market price of Skysong stock was $14 in 2022.
3. Cash dividends of $22,900 were paid, $4,900 of which were to preferred stockholders.
Compute the following measures for 2022. (Round all answers to 2 decimal places, e.g. 1.83 or 2.51%)
(a) Earnings per share $enter earnings per share in dollars
(b) Price-earnings ratio enter price-earnings ratio in times times
(c) Payout ratio enter payout ratio in percentages % (d) Times interest earned enter times interest earned times
Answer:
Earnings per share
= Net income - Preferred dividend
No of common stocks outstanding at the end
= $86,600 - $4,900
37, 100 shares
= $2.20 per share
b. Price-earnings ratio
= Market price per share
Earnings per share
= $14
$2.20
= 6.36
c. Pay-out ratio
= Ordinary dividend paid x 100
Earnings after preferred dividend
= $18,000 x 100
$81,700
= 22.03%
c. Times interest earned
= Earnings before interest and tax
Interest expense
= Net income + Interest expense+ Tax
Interest expense
= $86,600 + $16,700 + $26,400
$16,700
= 7.77 times
Explanation:
Earnings per share equals net income minus preferred dividend divided by number of common stocks outstanding at the end of the year.
Price-earnings ratio is market price price per share divided by earnings per share.
Pay-out ratio is ordinary dividend paid divided by earnings after preferred dividend.
Times interest earned is earnings before interest and tax divided by interest expense. Earnings before interest and tax equals net income plus interest expense plus income tax.
Naomi is studying for her law exam. While she is studying, she is trying to think of as many examples as she can to illustrate key ideas. In this case, Naomi is using a. an efficient study strategy, because examples should help her to recall key ideas. b. an ineffective study strategy that will probably cause her to confuse many of the key ideas. c. shallow processing that does not focus on the underlying meaning of the material she is reading. d. the linking method, to create a more complete semantic network.
Answer:
The correct answer is letter "A": an efficient study strategy, because examples should help her to recall key ideas.
Explanation:
Efficient study strategies are learned by practice to improve the brain's ability to retain information. This ability is acquired by choosing suitable study environments, establishing fixed study schedules, and selecting memory activities that somehow help information to be recalled easily.
Jack claims that Pluto has five moons: Charon, Nix, and Hydra, Kerberos, and Styx. Jill disagrees with Jack’s claim, insisting that Nix, Hydra, Kerberos, and Styx are actually moons of both Pluto and Charon. From an objective perspective, which claim makes more sense based upon our external view of the Pluto-Charon system?
Final answer:
Both Jack's and Jill's claims are valid depending on the perspective: Jack views Pluto's moons individually, while Jill considers the unique binary system Pluto forms with Charon.
Explanation:
Jack's claim that Pluto has five moons: Charon, Nix, Hydra, Kerberos, and Styx is factually accurate when considering the celestial bodies as individual entities orbiting Pluto. However, Jill's perspective that Nix, Hydra, Kerberos, and Styx are moons of both Pluto and Charon is also valid given the unique relationship between Pluto and its largest moon, Charon. This is due to the fact that Pluto and Charon are in a double tidal lock with each other, constantly facing one another as they orbit a common center of gravity, which could be perceived as them forming a sort of binary or double world system. Therefore, from an objective perspective, both claims make sense depending on whether one defines moons strictly by their direct orbital relationship with Pluto or includes the consideration of the binary system.
Final answer:
Nix, Hydra, Kerberos, and Styx are considered moons of Pluto, not shared with Charon, even though Charon's large size in relation to Pluto makes their system unique, resulting in a double tidal lock. This view is supported by scientific literature and the New Horizons mission findings, which affirm Pluto as the primary gravitational center for these moons.
Explanation:
From an objective perspective, based on our external view of the Pluto-Charon system, it makes more sense to consider Nix, Hydra, Kerberos, and Styx as moons of Pluto rather than as moons of both Pluto and Charon. While Charon is unique due to its large size relative to Pluto, causing some to consider them a double dwarf planet or a binary system, the four smaller moons orbit Pluto as the primary center of gravity. This is evident from astronomical observations and the fact that these moons are referred to as belonging to Pluto in most scientific literature and discussions.
Charon is indeed a significant moon, having a diameter of about 1200 kilometers, making it more than half the size of Pluto itself. The size and relative position of Charon and Pluto result in a special double tidal lock where each keeps the same face toward the other, likened to two dancers facing one another. Despite this, Nix, Hydra, Kerberos, and Styx are still regarded as satellites of Pluto rather than being shared moons with Charon.
The New Horizons spacecraft has provided many insights into the Pluto-Charon system, showing both to be dynamic and geologically active. Yet, in discussions of moons and satellites, the standard naming convention places these four moons as orbiting Pluto, reinforcing the viewpoint that Jack's claim aligns more closely with the accepted astronomical perspective.
Gerald's had opening total stockholders' equity of $160,000. During the year, total assets increased by $240,000 and total liabilities increased by $120,000. Their net income was $180,000. No additional investments were made. However, some amount was paid as dividend during the year. What was the amount of the dividend paid?
Final answer:
Gerald's paid out $60,000 in dividends during the year. This was calculated by determining the expected Stockholders' Equity after accounting for Net Income and comparing it to the actual Stockholders' Equity, accounting for the increases in total assets and liabilities.
Explanation:
To determine the amount of the dividend paid, we need to assess the change in Stockholder's Equity using the accounting equation:
Stockholder's Equity = Total Assets - Total Liabilities
We know Gerald's starting Stockholders' Equity is $160,000. Over the year, Total Assets increased by $240,000 and Total Liabilities increased by $120,000, thus:
New Total Assets = Old Total Assets + Increase = Starting Stockholders' Equity + Increase in Total Assets = $160,000 + $240,000 = $400,000.
New Total Liabilities = Old Total Liabilities + Increase = Increase in Total Liabilities = $120,000 (since we don't have the starting total liabilities).
New Stockholders' Equity = New Total Assets - New Total Liabilities = $400,000 - $120,000 = $280,000.
Net Income which contributes to Stockholder's Equity = $180,000. Thus, before considering dividends, the expected Stockholders' Equity should be the Starting Stockholders' Equity + Net Income = $160,000 + $180,000 = $340,000.
The actual Stockholders Equity though is $280,000. This means that the difference, which is paid out as dividends, is Stockholders' Equity expected - Actual Stockholders' Equity = $340,000 - $280,000 = $60,000.
Therefore, Gerald's paid out $60,000 in dividends during the year.