Answer:
A. The equilibrium price should rise as the supply curve shifts to the left and the demand curve shifts to the right.
Explanation:
due to the product being popular, the demand rises and the demand curve shifts to the right.
Green, a calendar-year taxpayer, is preparing a personal statement of financial condition as of April 30, Year 4. Green’s Year 3 income tax liability was paid in full on April 15, Year 4. Green’s tax on income earned between January and April Year 4 is estimated at $20,000. In addition, $40,000 is estimated for income tax on the differences between the estimated current values and current amounts of Green’s assets and liabilities and their tax bases at April 30, Year 4. No withholdings or payments have been made towards the Year 4 income tax liability. In Green’s April 30, Year 4, statement of financial condition, what amount should be reported for income taxes?
A $40,000
B $20,000
C $0
D $60,000
Answer:
In Green's April 30, Year 4, statement of financial condition, the amount which should be reported for income taxes:
A $40,000
Explanation:
The option A is correct as only the estimated amount of income taxes on the differences between the estimated current values and current amounts of assets and liabilities is presented between liabilities and net worth.The option B is also incorrect as the $20,000 current tax liability would be presented as a liability. The option C is also incorrect as the $40,000 estimated income taxes on the differences between the estimated current values and current amounts of assets and liabilities is presented between liabilities and net worth.The option D is also incorrect as the $20,000 current tax liability would be presented as a liability while the $40,000 amount would be presented between liabilities and net worth.Economists who asset that the AS curve is vertical believe that changes in Real GDP originate only on the _____________of the economy; so government policy that is intended to impact the ____________________ of the economy will change only ______________, not ________________.a. demand side; supply side; Real GDP; pricesb. demand side; supply side; prices; Real GDPc. supply side; demand side; Real GDP; pricesd. supply side; demand side; prices; Real GDP
Answer:
D. Supply side, Demand side, Prices, Real GDP
Explanation:
Economists who asset that the AS curve is vertical believe that changes in Real GDP originate only on the Supply side of the economy; so government policy that is intended to impact the Demand side of the economy will change only Prices, not Real GDP.
Answer:
D
Explanation:
Economists who asset that the AS curve is vertical believe that changes in Real GDP originate only on the supply side of the economy; so government policy that is intended to impact the demand side of the economy will change only prices, not Real GDP.
You are given the following information: Stockholders' equity as reported on the firm’s balance sheet = $4 billion, price/earnings ratio = 20.5, common shares outstanding = 60 million, and market/book ratio = 1.7. The firm's market value of total debt is $8 billion; the firm has cash and equivalents totaling $320 million; and the firm's EBITDA equals $1 billion.
What is the price of a share of the company's common stock? Do not round intermediate calculations. Round your answer to the nearest cent. $
What is the firm's EV/EBITDA? Do not round intermediate calculations. Round your answer to two decimal places.
The price of a share of the company's common stock is $113.33, after calculating the market value of equity using the market/book ratio and dividing by shares outstanding. The firm's EV/EBITDA is 14.48, found by computing the Enterprise Value and dividing by EBITDA.
Explanation:To find the price of a share of the company's common stock, first, we need to calculate the market capitalization of the equity. Since we know the market/book ratio is 1.7 and the book value of equity is $4 billion, the market value of equity is $4 billion * 1.7 = $6.8 billion. With 60 million common shares outstanding, the price per share is $6.8 billion / 60 million = $113.33 per share.
For the firm's EV/EBITDA calculation, we need to find the Enterprise Value (EV) first. The EV is calculated as market value of equity + market value of total debt - cash and equivalents. Thus, EV = $6.8 billion + $8 billion - $320 million = $14.48 billion. Then, EV/EBITDA = $14.48 billion / $1 billion = 14.48. Hence, the firm's EV/EBITDA ratio is 14.48.
HipHop Music Company assigns workers to departments based on similar skills. Currently, the company has a marketing department, a production department, a finance department, and a human resources department. This suggests that HipHop departmentalizes by: A. process.B.function.C. user group.D. tradition.
Answer:
Correct answer is (B). function.
Explanation:
By assigning workers to different department base on the skill, the HipHop Music Company is differentiating their tasks base on the functions of each department
Which of the following is something a company could do to foster bonding and affective commitment? Multiple Choice
add dental coverage to its health insurance package
offer incentives to the team with the highest sales
offer college reimbursement for business classes
offer free leadership seminars to all employees
hold a weekly "employee appreciation" party
Answer:
The correct answer is letter "E": hold a weekly "employee appreciation" party.
Explanation:
Organizational commitment plays a key role in employees' performance. The more engaged workers are with the company they work for, the more likely their production is going to be higher. Affective commitment refers to increasing the bonds that link workers within the organization. Casual reunions after every period of time are one of the many activities firms could use to engage employees with their brand.
Final answer:
Companies can foster bonding and affective commitment by offering various initiatives such as free leadership seminars, holding weekly 'employee appreciation' parties, and providing college reimbursement for business classes.
Explanation:
To foster bonding and affective commitment, a company could hold a weekly "employee appreciation" party. This action is likely to create a sense of community and belonging among employees, as it acknowledges their efforts and contributions in a regular and social setting. Such an approach aligns with the principles of organizational behavior, which suggest that positive experiences at work can lead to a deeper commitment to the company.
Organizations can foster bonding and affective commitment among employees by offering various initiatives such as free leadership seminars to all employees, holding weekly 'employee appreciation' parties, and providing college reimbursement for business classes. These actions create a positive work environment and strengthen employee engagement and commitment.
You are giving a tour of businesses to several classical musicians from China. One of the Chinese in the tour group has asked you to define the purpose of business. How should you answer this question?
Answer:
Purpose of business is to increase general well being of people by selling goods and services.
Explanation:
The main purpose of business is to increase well being of people, make profits for its stakeholders and offering value for money to its customers or clients through products and or services. The products and services provided by the company should not harm its customers and clients instead these products and services should provide benefits to its users and satisfy their needs. While making profits a company should keep scarce resources in mind so the needs of the future generation is not compromised also it does not harm the environment by its poisonous wastage. Every business requires some form of investment as an input though which quality output can be provided to its customers and clients.
Recently, the Economist Intelligence Unit investigated the status of democracies around the globe. Relying on 60 indicators that focus on the performance of free elections, civil liberties, government functioning, political participation, and political culture in a country, the study found that ________.
A) almost all of the world's democracies are full democracies
B) nearly half of the world's democracies qualify as "full" or "flawed" democracies
C) less than a quarter of the countries studied are outright authoritarian regimes
D) most democracies are hybrid political systems that share theocratic and totalitarian characteristics
Answer:
The correct answer is (B)
Explanation:
Economist intelligence unit is a survey institution that emphasis on various economic, social and political indicators. Countries around the globe are having a different set of government institutions. According to the economist intelligence unit considering various factor concluded that almost half of the world's democracies are full or flawed democracies which means the elections are fair and transparent.
Brand loyalty, usage rate, and perceived risk are studied with which possible base of market segmentation?
Answer:
Explained below:
Explanation:
Brand loyalty, usage rate, and perceived risk are studied under the behavioral base of segmentation which means that consumers show distinct levels of loyalty to the brands so consumed market could also be segmented on the basis of loyalty status of a particular brand. Consumers of the market must be divided on the basis of usage rate also so that we are able to identify the rough demand of the particular product to minimize the risk regarding product selling.
Question:
The equity section of Cyril Corporation's balance sheet shows the following:
Preferred stock: 4% cumulative, $25 par value, $30 call price, 10,000 shares issued and outstanding $250,000
Common stock: $10 par value, 35,000 shares issued and outstanding 350,000
Retained earnings 267,500
Total stockholders' equity $867,500
Determine the book value per share of the preferred and common stock under two separate situations:
1. No preferred dividends are in arrears.
2. Three years of preferred dividends are in arrears.
Answer:
Part 1:
[tex]Book\ value\ per\ share\ of\ the\ preferred=\$25[/tex]
[tex]Book\ value\ per\ share\ of\ the\ common\ stock=\$17.6428[/tex]
Part 2:
[tex]Book\ value\ per\ share\ of\ the\ preferred=\$28[/tex]
[tex]Book\ value\ per\ share\ of\ the\ common\ stock=\$16.7857[/tex]
Explanation:
Part 1: (the book value per share of the preferred and common stock under No preferred dividends are in arrears)
Book value per share of the preferred :
[tex]Book\ value\ per\ share\ of\ the\ preferred=\frac{(Preferred\ Stock+Cumulative\ dividends)}{Number\ of\ shares\ of\ preferred\ stock}[/tex]
In our case Cumulative dividends=0
[tex]Book\ value\ per\ share\ of\ the\ preferred=\frac{\$250000+0}{10000} \\Book\ value\ per\ share\ of\ the\ preferred=\$25[/tex]
Book value per share of the common stock:[tex]Book\ value\ per\ share\ ofthecommonstock=\frac{Stockholder\ equity-Preferred\ Stock-Cumulative\ dividends}{Number\ of\ shares\ of\ preferred\ stock}[/tex]In our case Cumulative dividends=0
[tex]Book\ value\ per\ share\ of\ the\ common\ stock=\frac{\$867500-\$250000-\$0}{35000} \\Book\ value\ per\ share\ of\ the\ common\ stock=\$17.6428[/tex]
Part 2:
Annual Preferred Dividend=4%*$25*10,000=$10,000
Three years of preferred dividends are in arrears= 3*Annual Preferred Dividend
Three years of preferred dividends are in arrears= 3*$10000=$30,000
Formula for the book value per share of the preferred is same as above,so we will direct calculate:
In our case Cumulative dividends=$30,000
Book value per share of the preferred :
[tex]Book\ value\ per\ share\ of\ the\ preferred=\frac{\$250000+\$30000}{10000} \\Book\ value\ per\ share\ of\ the\ preferred=\$28[/tex]
Book value per share of the common stock:
Formula for the book value per share of the common stock is same as above,so we will direct calculate:
[tex]Book\ value\ per\ share\ of\ the\ common\ stock=\frac{\$867500-\$250000-\$30000}{35000} \\Book\ value\ per\ share\ of\ the\ common\ stock=\$16.7857[/tex]
PS.02 A process that utilizes inexpensive general-purpose capital equipment will tend to have higher skilled workers.
True or false?
Answer:
True
Explanation:
There are various manufacturing process some require skilled workers and some operations demand expensive machinery and capital equipment. The process that utilises inexpensive general-purpose capital equipment generally requires skilled workers to operate it. Inexpensive equipment is not easy to handle and require experts to maintain and operate, which is why the above statement is true.
A firm expands its scale of production and finds that it is able to negotiate better prices with its suppliers.
Which of the curves best applies to this firm?
Answer:
Economies of Scale
Explanation:
If a firm expands its scale of production and finds that it is able to negotiate better prices with its suppliers then the curve that best applies to the firm is 'economies of scale'
Economies of scale is a concept in microeconomics that holds that there are benefits of cost reduction that is due to an enterprise when it increases its scale of operation.
The benefit is better demonstrated in the average cost per unit because as more and more units are produced, lesser and lesser portion of the fixed costs of the overhead fixed costs become attributable to each unit and even the variable cost falls because material price becomes cheaper as a result of quantity discounts, even labour could double their output with overtime payment which is less than doubling wages.
On January 1, 2012, Mehan, Incorporated purchased 15,000 shares of Cook Company for $150,000 giving Mehan a 15% ownership of Cook. On January 1, 2013 Mehan purchased an additional 25,000 shares (25%) of Cook for $300,000. This last purchase gave Mehan the ability to apply significant influence over Cook. The book value of Cook on January 1, 2012, was $1,000,000. The book value of Cook on January 1, 2013, was $1,150,000. Any excess of cost over book value for this second transaction is assigned to a database and amortized over five years. Cook reports net income and dividends as follows. These amounts are assumed to have occurred evenly throughout the years: On April 1, 2014, just after its first dividend receipt, Mehan sells 10,000 shares of its investment. What was the balance in the investment account at December 31, 2013?
Answer:
$447,500
Explanation:
1. On January 1, 2012, Mehan, Incorporated purchased 15,000 shares of Cook Company for $150,000 giving Mehan a 15% ownership of Cook
Therefore Balance on investment account as at 31 December, 2012. - $150,000
2. On January 1, 2013 Mehan purchased an additional 25,000 shares (25%) of Cook for $300,000.
Therefore:
Book value of 25% of $1,150,000 = 287,500
Excess of cost over book value = 300,000 - 287,500 = 12,500
Yearly amortization of excess = 12500/5 = 2500
Therefore balance in investment account at the end of 2013 will be:
150,000+300,000 - 2500 = $447,500
On November 1, Bryant Company received $36,600 for six months of rent in advance. On November 1, Bryant Company credited Rent Revenue, which is an alternate way of recording the initial receipt of cash.Required: Journalize the adjusting entry on November 31.
Answer:
Entry for Bryant company mistake:
Debit Credit
Rent Revenue $36,600
Advance Rent $36,600
Entry for recording rent revenue for the month of November:
Debit Credit
Advance Rent $6,100
(36,600/6)
Rent Revenue $6,100
Explanation:
The journal entry which should have been recorded by the Bryant Company on receipt of rent on November 1 should have been following:
Debit Credit
Cash $36,600
Advance Rent $36,600
But the Bryant company has recorded the following entry on November 1 instead of above mentioned correct entry:
Debit Credit
Cash $36,600
Rent Revenue $36,600
On November 31, the following two journal entries shall be recorded in the accounts of the Bryant Company in order to correct the earlier wrong entry made by the Bryant company and to record the rent income entry for the month of the November.
Entry for Bryant company mistake:
Debit Credit
Rent Revenue $36,600
Advance Rent $36,600
Entry for recording rent revenue for the month of November:
Debit Credit
Advance Rent $6,100
(36,600/6)
Rent Revenue $6,100
Many business people believe that marketing should focus on factors other than financial goals, such as ___.
Answer:
Corporate citizenry
Explanation:
Many business people believe that marketing should focus on factors other than financial goals, such as Corporate citizenry
Marketing's focus should not be solely on financial goals. Other important factors can include brand reputation, customer satisfaction, sustainability, and social impact. These elements help establish a positive image, customer loyalty, and contribute to societal good.
Explanation:Many business people believe that marketing should focus on a variety of factors beyond just financial goals. These alternative focal points can include elements such as brand reputation, customer satisfaction, sustainability efforts, and social impact. For example, a business can focus on increasing its brand reputation by ensuring high-quality services or products or good team processes. Customer satisfaction is another vital aspect. Businesses may focus on customer feedback and experiences to improve and meet their needs. Sustainability efforts are another focus area, with businesses emphasizing environmentally friendly practices. Lastly, many businesses aim to have a positive social impact by contributing to the community or society at large.
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For each of the following items, identify whether they would most likely be reported in the balance sheet (B) or income statement (I).
a. Net income
b. Retained earnings
c. Depreciation expense
d. Accumulated depreciation
e. Wages expense
f. Wages payable
g. Interest expense
h. Interest payable
i. Sales
Answer:
Explanation:
The statement of income records all sales revenues general and expenditure incurred during a particular period.
The balance sheet reports the assets and the liabilities of the company
So, the classification is as follows
a. Net income = income statement (I)
b. Retained earnings = balance sheet (B)
c. Depreciation expense = income statement (I)
d. Accumulated depreciation = balance sheet (B). It is deducted from the value of the respective fixed assets
e. Wages expense = income statement (I). It is shown on the debit side of the income statement
f. Wages payable = balance sheet (B). It is a current liabilities
g. Interest expense = income statement (I) It is shown on the debit side of the income statement
h. Interest payable = balance sheet (B). It is a current liabilities
i. Sales = income statement (I)
a. Net income - I (Income Statement) b. Retained earnings - B (Balance Sheet) c. Depreciation expense - I (Income Statement) d. Accumulated depreciation - B (Balance Sheet) e. Wages expense - I (Income Statement) f. Wages payable - B (Balance Sheet) g. Interest expense - I (Income Statement) h. Interest payable - B (Balance Sheet) i. Sales - I (Income Statement)
Explanation:a. Net income - I (Income Statement)
b. Retained earnings - B (Balance Sheet)
c. Depreciation expense - I (Income Statement)
d. Accumulated depreciation - B (Balance Sheet)
e. Wages expense - I (Income Statement)
f. Wages payable - B (Balance Sheet)
g. Interest expense - I (Income Statement)
h. Interest payable - B (Balance Sheet)
i. Sales - I (Income Statement)
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Aracel Engineering completed the following transactions in the month of June.
a. Jenna Aracel, the owner, invested $100,000 cash, office equipment with a value of $5,000, and $60,000 of drafting equipment to launch the company.
b. The company purchased land worth $49,000 for an office by paying $6,300 cash and signing a long-term note payable for $42,700.
c. The company purchased a portable building with $55,000 cash and moved it onto the land acquired inb.
d. The company paid $3,000 cash for the premium on an 18-month insurance policy.
e. The company completed and delivered a set of plans for a client and collected $6,200 cash.
f. The company purchased $20,000 of additional drafting equipment by paying $9,500 cash and signing a long-term note payable for $10,500.
g. The company completed $14,000 of engineering services for a client. This amount is to be received in 30 days.
h. The company purchased $1,150 of additional office equipment on credit.
i. The company completed engineering services for $22,000 on credit.
j. The company received a bill for rent of equipment that was used on a recently completed job. The $1,333 rent cost must be paid within 30 days.
k. The company collected $7,000 cash in partial payment from the client described in transaction g.
l. The company paid $1,200 cash for wages to a drafting assistant.
m. The company paid $1,150 cash to settle the account payable created in transaction h.
n. The company paid $925 cash for minor maintenance of its drafting equipment.
o. Jenna Aracel withdrew $9,480 cash from the company for personal use.
p. The company paid $1,200 cash for wages to a drafting assistant.
q. The company paid $2,500 cash for advertisements on the Web during June.
Prepare general journal entries to record these transactions
Answer:
Aracel Engineering Ltd.
Journal Entries
Sr. No. Accounts Debit Credit
a. Investments $100,000
Cash $ 100,000
a. Office Equipment $ 5000
Cash $ 5000
Purchase office Equipment
a. Drafting Equipment $ 60,000
Cash $ 60,000
Purchase Drafting Equipment
b. Land $ 49,000
Cash $ 6,300
Note Payable $ 42,700
Purchase Land
c. Building $ 55,000
Cash $ 55,000
Purchase Building
d. Premium for Insurance $ 3000
Cash $ 3000
Paid Cash for Insurance Premium
e. Cash $ 6200
Drafting Services A/c $ 6200
Received Cash for a set of plans (drafts) from a client
f. Drafting Equipment $ 20,000
Cash $ 9500
Notes Payable $ 10,500
Bought equipment for cash and notes payable
g. Account Receivable $ 14,000
Engineering Services $ 14,000
Engineering Services rendered on credit
h. Office Equipment $ 1150
Accounts Payable $ 1150
Office Equipment bought on credit
i. Account Receivable $ 22,000
Engineering Services $ 22,000
Engineering Services rendered on credit
j. Rent Expense $ 1333
Rent Payable $ 1333
Rent to be paid within 30 days
k. Cash $ 7000
Account Receivable $ 7000
Received partial payment as Cash for Engineering services
l. Wages $ 1,200
Cash $ 1,200
Wages Paid
m. Accounts Payable $ 1150
Cash $ 1150
Payment made for office equipment purchased on credit
n. Maintenance ( equipment) $ 925
Cash $ 925
Maintenance charges paid for equipment
o. Drawing Account $ 9,480
Cash $ 9,480
Withdrew cash for personal use
p. Wages $ 1200
Cash $ 1200
Paid wages
q. Advertisements $ 2500
Cash $ 2500
Paid advertisement charges
The journal entries to record these transactions are:
a. Dr Cash $100,000
Dr Office equipment $5,000
Dr Drafting equipment $60,000
Cr Common stock $165,000
($100,000+$5,000+$60,000)
( To record amount Invested in business)
b. Dr Land $49,000
Cr Cash $6,300
Cr Notes payable $42,700
(To record Purchase of land)
c. Dr Building $55,000
Cr Cash $55,000
(To building Purchased )
d. Dr Prepaid insurancye $3,000
Cr Cash $3,000
(To record Purchase of insurance policy)
e. Dr Cash $6,200
Cr Engineering fees earned $6,200
(To record fees received for engineering services)
f. Dr Drafting equipment $20,000
Cr Cash $9,500
Cr Notes payable $10,500
( To record drafting equipment purchased )
g. Dr Accounts receivable $14,000
Cr Engineering fees earned $14,000
(To record engineering services Completed)
h. Dr Office equipment $1,150
Cr Accounts payable $1,150
( To record office equipment purchased)
i. Dr Accounts receivable $22,000
Cr Engineering fees earned $22,000
(To record engineering services Completed)
j. Dr Equipment rental expense $1,333
Cr Accounts payable $1,333
(To record equipment rental expense incurred)
k. Dr Cash $7,000
Cr Accounts receivable $7,000
(To record cash collected on account)
l. Dr Wage expense $1,200
Cr Cash $1,200
(To record wages paid)
m. Dr Accounts payable $1,150
Cr Cash $1,150
( To record cash paid on account)
n . Dr Repairs expense $925
Cr Cash $925
( To record amount paid for repairs of drafting equipment)
o. Dr Dividends $9,480
Cr Cash $9,480
(To record dividends)
p. Dr Wage expense $1,200
Cr Cash $1,200
(To record wages paid )
q. Dr Advertisement expense $2,500
Cr Cash $2,500
(To record amount paid for advertisement)
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Karen White helped organize a charity fund to help cover the medical expenses of a friend of hers who was seriouslyinjured in a bicycle accident. The fund was named Vicky Hill Recovery Fund (VHRF). Karen contributed 81,000 of her ownmoney to the fund. The $1,000 was paid to WKUX, a local radio station that designed and played an advertising campaignto educate the public as to the need for help. The campaign resulted in the collection of $20,000 cash VHRF paid $12,000to Mercy Hospital to cover Vicky’s outstanding hospital cost. The remaining $8,000 was contributed to the National CyclistFund.RequiredIdentify the entities that were mentioned in the scenario and explain what happened to the cash accounts of each entitythat you identify.
Answer:
Explanation:
Karen contributed $1000, so her account decreased by $1000
Company paid $1000 to WKUX radio, so WKUX income increased by $1000
Someone donated $20000 due to campaign, so those who donated decreased their cash account by $20000
VHRF paid Mercy Hospital $12000, so hospital's account increased by $12000
Company contributed to NC Fund of $8000, so their account increased by $8000
VHRF TRANSACTIONS EFFECT:
1. Cash account increased by $21000 (charitable contributions)
2. Cash account decreased by $1000 (radio advertisement)
3. Cash account decreased by $12000 (hospital bills)
4. Cash account decreased by $8000 (contribution to NC fund)
Final answer:
Karen White initiated the Vicky Hill Recovery Fund, contributing $1,000 for an advertising campaign that raised $20,000. $12,000 of the funds raised were used to pay for medical bills, and $8,000 was donated to the National Cyclist Fund, impacting the cash accounts of several entities.
Explanation:
Karen White helped organize a charity fund called the Vicky Hill Recovery Fund (VHRF) to assist with the medical expenses of a friend injured in a bicycle accident. Karen contributed $1,000 to the fund, which was used to pay WKUX, a local radio station, for an advertising campaign. This campaign successfully raised $20,000. Of this amount, $12,000 was paid to Mercy Hospital to cover Vicky’s medical bills, and the remaining $8,000 was donated to the National Cyclist Fund. The entities involved—Karen White, WKUX radio station, Vicky Hill Recovery Fund (VHRF), Mercy Hospital, and the National Cyclist Fund—experienced changes in their cash accounts due to these transactions.
e) List and describe six reasons why information systems are so important for business today.
Answer:
operational Excellence
New Product, Services & Business models
Customer & Supplier Intimacy
Operational excellence
Improved decision making
Competitive advantage
Survival
Explanation:
1) Operational Excellence – Information systems are essential tools available to managers in order to achieve optimum levels of efficiency and productivity in business operations thereby higher profitability.
2) New product services and business models – They play a vital role in the creation of new products and services. New business models help to create,describe how a company produce, create and sell the products for profitability.
3) Customer and Supplier intimacy – Information system provide the foundation of customer satisfaction. they make sure a business serves its customers well, thereby improving customer satisfaction that will enable customer to purchase more and generate revenue
4) Improved decision making – they generate real time data from the marketplace when making decision
5) Competitive advantage – Information System help in doing things better than competitors, charging less for superior products, and responding to customers and suppliers in real time all add up to higher sales, and higher profits
6) Day to Day survival – Information System help to provide ease in business
information systems are so important for business today. Information systems are crucial instruments managers have at their disposal for achieving the highest levels
What is business?An innovative company or group that engages in professional activities is referred to as a business. They could be industrial, commercial, or something else. Businesses that are for-profit operate to make a profit, whereas those that are nonprofit do so to further a philanthropic cause.
1) Operational Excellence - Information systems are crucial instruments managers have at their disposal for achieving the highest levels of productivity and efficiency in business operations, which leads to increased profitability.
2) New product, service, and business model development - These factors are crucial in the development of new goods and services. In order to design, explain, create, and sell items profitably, new business models are helpful.
3) Closeness between customers and suppliers - Information systems serve as the cornerstone of client happiness. They ensure a company provides excellent customer service, increasing client happiness and encouraging increased sales and revenue.
4) Better decision-making: They obtain real-time market data when making decisions.
5) Competitive advantage: Information systems facilitate greater performance.
Therefore, In today's commercial world, information systems are crucial. Information systems are important tools for managers.
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How can a system administrator meet this requirement?
Sales representatives at Universal Containers perform the initial steps in the lead qualification process and sales managers complete the final qualification steps. Universal Containers' requirements include those listed below.Sales managers can access all lead status values.Sales representatives can only access the first three lead status values.Sales representatives cannot access the final two lead status values.
A. Create two separate lead page layouts.
B. Create two separate lead processes and record types.
C. Use field-level security to restrict access to the lead status values.
D. Create a validation rule to prevent lead conversion.
Create two separate lead page layouts
Explanation:
Lead page layout can be created by using design manager and then choose a page layout and then the create page layout then we must select the master page select the content type and then choose and continue
Layout defines the fields in which the user can view and edit the fields give the description about the objects they can create and edit the fields accordingly. It contains the visual force page the buttons and the related lists
When Minute Maid mailed out free samples of its new instant drink mix, it was trying to move prospective customers into the ____ stage of the product adoption process.
a. evaluation
b. awareness
c. adoption
d. interest
e. trial
Answer: (E) Trial
Explanation:
The trial stage is one of the stage in the product adopting process in which the customer trail about the new products and the services in the market on a very small scale for estimating about the value of the given product.
In this process consumer trail the item and the decide about using the new launched product on the regularly basis.
According to the given question, the customers trying the new products sample of the instant drink are refers to the trial stage of the product adopting process.
Therefore, Option (E) is correct answer.
High-Low Cost Estimation The Stone Company has observed that its utility cost is $5,000 when operating at a level of 20,000 machine hours per period. The utility cost drops to $4,000 when the operating level drops to 15,000 machine hours. Required: Estimate the utility cost for an operating level of 18,000 machine hours.
Answer:
$4,600
Explanation:
High-Low cost estimation is used to split a mixed cost into variable cost and fixed cost.
The first step is to determine the variable cost per unit with this formula
= High Activity cost - Low Activity Level cost
_____________________________________
High Activity Level (units) - Low Activity Level (units)
In this case, we can slot in the appropriate figure using this formula
= $5,000 - $4,000
__________________
20,000hrs - 15,000hrs
= $,1000
______
5000hrs
= $0.2hr
Using high-low cost estimation, the variable cost per machine hour is $0.2.
Now since total cost equals fixed plus variable cost, we can get our fixed cost by multiplying variable cost per machine hour with activity level and deducting the result from total cost given.
Using the high activity level (20,000), our fixed cost will be:
Fixed cost = Total cost - variable cost per machine hr (activity level)
Fixed cost= $5,000 - $0.2(20,000hr)
Fixed cost = $5,000- $4,000
Fixed cost =$1,000
Having gotten our fixed cost and variable cost per machine hour, we can estimate the total utility cost for 18,000 machine hours by using this formula:
y = a + b(x)
Where y is the total cost, a the fixed cost, b the variable cost per unit and x the activity level.
y = $1,000 + $0.2(18,000)
y = $1,000 + 3,600
y = $4,600.
Apex Fitness Club uses straight-line depreciation for a machine costing $23,860, with an estimated four-year life and a $2,400 salvage value. At the beginning of the third year, Apex determines that the machine has three more years of remaining useful life, after which it will have an estimated $2,000 salvage value.
Compute (1) the machineâs book value at the end of its second year and (2) the amount of depreciation for each of the final three years given the revised estimates.
The book value of the machine at the end of the second year is $12,630. The amount of depreciation for each of the final three years is $3,876.67.
Explanation:To compute the book value at the end of the second year, we need to calculate the depreciation expense for the first two years and subtract it from the initial cost of the machine. The depreciation expense per year is calculated by subtracting the salvage value from the initial cost and dividing by the estimated life of the machine. In this case, the depreciation expense per year is ($23,860 - $2,400) / 4 = $5,615. The depreciation expense for the first two years is $5,615 * 2 = $11,230. Therefore, the book value at the end of the second year is $23,860 - $11,230 = $12,630.
To calculate the amount of depreciation for each of the final three years using the revised estimates, we need to calculate the new depreciation expense per year for the remaining useful life of the machine. The new salvage value is $2,000, and the remaining useful life is three years. Therefore, the new depreciation expense per year is ($12,630 - $2,000) / 3 = $3,876.67. The amount of depreciation for each of the final three years is $3,876.67.
PRISM Marketing received $100,000 from a customer on January 2nd, 2022 to be on retainer for the next two years. The appropriate journal entry to illustrate earned revenue at PRISM's fiscal year-end on December 31st, 2022 would be ____________. In the choices below, as per convention, debits are listed first followed by credits.
Final answer:
The appropriate journal entry to illustrate earned revenue for PRISM Marketing is to debit Unearned Revenue and credit Service Revenue by $50,000, which is half of the retainer fee received for one year out of the two-year service period.
Explanation:
The appropriate journal entry for PRISM Marketing to illustrate earned revenue at the end of the fiscal year on December 31st, 2022, for the retainer fee received is a debit to an asset account called "Unearned Revenue" and a credit to a revenue account, probably called "Service Revenue". Since the retainer covers two years and assuming a straight-line recognition of revenue, half of the $100,000 would be recognized as of December 31st, 2022, which is $50,000. The journal entry would be:
Debit Unearned Revenue: $50,000
Credit Service Revenue: $50,000
This entry moves the portion of the retainer that has been earned during the year from a liability to a revenue account, reflecting that the money is no longer unearned since services have been provided for one year out of the two-year agreement. It is important for the accountants to recognize this revenue according to the appropriate accounting principles to accurately reflect the financial state of the company.
Helen Weeks has worked for Bonne Consulting Group (BCG) as the executive secretary in the administrative department for nearly 10 years. Her apparent integrity and dedication to her work has quickly earned her a reputation as an outstanding employee and has resulted in increased responsibilities. Her present responsibilities include making arrangements for outside feasibility studies, maintaining client files, working with outside marketing consultants, initiating the payment process, and notifying the accounting department of all openings or closings of vendor accounts.
During Helen’s first five years of employment, BCG subcontracted all of its feasibility and marketing studies through Jackson & Co. This relationship was subsequently terminated because Jackson & Co. merged with a larger, more expensive consulting group. At the time of termination, Helen and her supervisor were forced to select a new firm to conduct BCG’s market research. However, Helen never informed the accounting department that the Jackson & Co. account had been closed.
Since her supervisor allowed Helen to sign the payment voucher for services rendered, Helen was able to continue to process checks made payable to Jackson’s account. Because her supervisor completely trusted her, he allowed her to sign for all voucher payments less than $10,000. The accounting department continued to process the payments, and Helen would take responsibility for distributing the payments. Helen opened a bank account in a nearby city under the name of Jackson & Co., where she would make the deposit. She paid all of her personal expenses out of this account.
Assume that you have recently been hired by Bonne Consulting Group to help detect and prevent fraud.
1. What internal controls are missing in Helen’s company?
2. What gave Helen the opportunity to perpetrate the fraud?
3. How could this fraud have been detected?
Answer:
1.) The internal controls which were missing are from the separation of responsibilities. There must have been in place an inner regulator were an individual works with advisers while alternative individual or unit take-care of the expense procedure, then somebody else allow expenses and then office should distribute the expenditures. There is an absence of inner controls as you can realize that the corporation amalgamated with a larger corporation and no one measured other accounts such as Jackson and company any longer.
2.) With the lack of control, this offered Helen the chance to effect the fraud. With this presence said, she was talented to emulate sign receipts and spend the retailer’s expenditures. She were also the one in responsibility of office the initial and final of accounts. In short, she had several accountabilities that should have remained separated up better and had diverse individuals for the separations of the job. In addition, she needed a bank description from the corporation where she was capable to put the expenditures and pay individual expenditures.
3.) The method this fraud might be noticed is the inspection squad can ask the bank for reports. They might also conference sellers. The accounting section should have ended sure they were doing the due diligence in dealers and corresponding the receipts with statements and expenditures.
The internal controls missing in Helen's company include a lack of segregation of duties, no proper reconciliation of vendor accounts, and an absence of regular audits or checks. Helen was able to perpetrate the fraud because of her supervisor's trust and the lack of oversight in her responsibilities. The fraud could have been detected through regular reconciliation of accounts, auditing the payment process, and reviewing bank statements.
Explanation:1. The internal controls missing in Helen's company include:
A lack of segregation of duties, as Helen was able to initiate and process payments without oversight.No proper reconciliation of vendor accounts, as Helen did not notify the accounting department of the closure of the Jackson & Co. account.An absence of regular audits or checks on payment processes, allowing Helen to continue the fraud undetected.2. Helen was given the opportunity to perpetrate the fraud due to her supervisor's complete trust in her and the lack of oversight in her job responsibilities.
3. The fraud could have been detected through:
Regular reconciliation of vendor accounts and verification of payment recipients.Auditing the payment process to ensure proper authorization and segregation of duties.Reviewing bank statements and identifying suspicious transactions.Learn more about Internal controls in business here:https://brainly.com/question/31936516
âCrabapples, Inc. purchases and sells boxes of dried fruit. The following information summarizes its operating activities for theâ year: Selling Expenses $ 9 comma 100 Merchandise Inventory on December 31 33 comma 500 Merchandise Inventory on January 1 46 comma 400 Purchases of merchandise 82 comma 000 Rent for store 12 comma 600 Sales commissions 7 comma 500 Sales revenue 164 comma 000 What is the cost per box of dry fruits if Crabapples sold 3 comma 000 boxes of dry fruit during theâ year?
Answer:
The cost of each box of dry fruit sold during the year is$18.3
Explanation:
The first step to calculating the cost per box of dry fruits is to determine the Cost of Goods Sold.
Cost of Goods Sold
= Opening Merchandise of Inventory January 1+ Purchases of Merchandise during the year - Ending Merchandise inventory on December 31
=-$46,400 + $42,000- $33,500
= $54,900 is the Cost of Goods sold.
Step 2: Calculate the cost of each box sold as required
The formula is The Cost of Goods Sold determined in step 1 / the number of boxes of dry fruits Crabapples sold during the year
=$54,900/3000 boxes
= $18.3
The cost of each box of dry fruit sold during the year is$18.3
Match each of the financial statement users listed to the question they are most likely to ask.1. What is the expected net income for the next quarter?2. Will the company have enough cash to pay dividends? 3. Has the company paid for inventory purchases promptly in the past? 4. Will there be sufficient profits and cash flow to pay bonuses? 5. Will the company have enough cash to repay its loans? Answers can be:banker, company CEO, current shareholders, equity analyst, supplier.
Answer:
1. What is the expected net income for the next quarter? Equity analyst
2. Will the company have enough cash to pay dividends? Current shareholders
3. Has the company paid for inventory purchases promptly in the past?Supplier.
4. Will there be sufficient profits and cash flow to pay bonuses? Company CEO
5. Will the company have enough cash to repay its loans? Banker
Explanation:
1. What is the expected net income for the next quarter?
Asked by equity analyst
An analyst performs financial analysis for interested parties for a fee. In order to prepare a good financial analysis and make informed forecast, he may want to know what to expect from the company in not too distant future.
2. Will the company have enough cash to pay dividends?
Asked by current shareholders
The current shareholders are interest in getting returns on their investment in form of dividends
3. Has the company paid for inventory purchases promptly in the past? supplier.
The potential suppliers or creditors will want this information to be able to decide whether the entity is credit worthy or not. Where it is discovered that the firm has a track record of delaying payment to suppliers, that will influence the potential supplier's decision in extending credit to the firm.
4. Will there be sufficient profits and cash flow to pay bonuses?
Asked by company CEO
This is to know what to tell the staff and mangers who may be interested in knowing the ability of the firm to meet its obligation to the staff.
5. Will the company have enough cash to repay its loans?
Asked by banker
The bankers are interested in knowing the liquidity position of the enterprise, and ability of the firm to service its debt.
Struggling with this one
Job-specific human capital. In this problem, based on a simplified
version of the model in Bhattacharya and Sood (2006), we will explore how linking employment and health insurance provision can (partially) solve the adverse selection problem if the labor market is competitive. Suppose that there are two types of workers - sickly workers with probability ps of falling ill over the course of the next year, and robust workers with probability pr < ps of falling ill. Employers cannot observe whether a worker is sickly or robust, and because of U.S. law they can only decide to offer health insurance to allof their workers, or none at all. We will assume that a just-hired employee is less productive than an employee who has more experience; let MPn be the marginal value product of new employees, and MPe > MPn be the marginal value product of experienced employees. In this simple model, marginal value product depends only on experience, not on whether a worker is sickly or robust.
(a) Consider an employer deciding whether to hire a new employee who will produce a marginal value product of MP. If the employer offers income and no health insurance, what wage, w, will the employer have to pay the employee in a competitive labor market? What would happen if the employer offered the employee less? What would happen if the employer offered the employee more?
Answer:
The wage of the marginal employee is related wiht the marginal productivity of this employee
Explanation:
If the employer offer less, the employer can hire more employees, an the marginal productivity of the employees will decreases, and the employer will fire the employees and hire new ones, but if the employer offer more, it will cause losses, and the employer will fire this marginal employee and hire a new one. The wage it is determined by the average productivity, if there are to much sickly workers, the average productivy will be low, also the wage that the employer will offer.
Final answer:
In a competitive labor market, an employer must pay a competitive wage if not offering health insurance, balancing the risk of paying too much or too little based on their capacity to attract skilled workers while managing adverse selection in health insurance.
Explanation:
In a competitive labor market, an employer deciding to hire a new employee and offer a marginal value product of MP without health insurance must pay a wage, w, that reflects the going market rate for the job, skill level, and conditions, including the lack of health insurance benefits. If the employer offers less than this market rate, potential employees might choose to work elsewhere where they can get a better package, leading to the employer not being able to attract enough skilled workers. Conversely, if the employer offers more, they might attract a higher caliber of applicants, but it might also lead to increased labor costs that are not sustainable in the long run. Given the complexities of the health insurance market, employers are faced with the decisions of either offering health insurance to all employees or none, due to U.S. law restrictions, which plays a significant role in their ability to manage adverse selection problems and compete for talent in cases where job-specific human capital is inherently intertwined with employees' health status.
Farmer Brian has 3 acres of land which he farms efficiently. Each acre can support 10 apple trees. However the 3 acres differ in their ability to support orange trees. He can grow 30 orange trees on the best land, 20 orange trees on the ok land, and 10 orange trees on the bad land. If he initially has all is land growing apples, what would be the opportunity cost of growing an orange tree
Final answer:
The opportunity cost of planting one orange tree for Farmer Brian is the loss of about 3.33 apple trees that could have been planted on the same land.
Explanation:
Farmer Brian's opportunity cost of growing an orange tree instead of apple trees is essentially the apples that he will no longer harvest because the land is being used for orange trees. The opportunity cost can be calculated based on the number of apple trees that could have been planted on the land used for one orange tree. As one acre can support 10 apple trees, and the best land can support 30 orange trees, it would mean that one orange tree is equivalent to 1/3 of an acre. Therefore, the opportunity cost for one orange tree is approximately 3.33 apple trees (10 apple trees per acre divided by 3).
Low Carb Diet Supplement Inc. has two divisions. Division A has a profit of $178,000 on sales of $2,680,000. Division B is able to make only $32,600 on sales of $386,000. a. Compute the profit margins (return on sales) for each division. (Input your answers as a percent rounded to 2 decimal places.) b. Based on the profit margins (returns on sales), which division is superior
Answer:
a. 6.64% and 8.45%
b. Division B
Explanation:
The computation of the profit margin is shown below:
Profit margin = (Profit ÷ sales) × 100
For Division A, it would be
= ($178,000 ÷ $2,680,000) × 100
= 6.64%
For Division B, it would be
= ($32,600 ÷ $386,000) × 100
= 8.45%
b. Based on the profit margin, we can conclude that Division B has a higher profit margin that reflects the superior position
Profit margin is calculated by dividing the profit by sales and multiplying by 100. Division A has a profit margin of 6.64% and Division B has a profit margin of 8.45%. Therefore, Division B is superior as it has a higher profit margin, meaning it's more efficient at converting revenue into profit.
Explanation:To calculate the profit margin (also known as return on sales), you divide the profit by the sales and multiply by 100 to get the percentage. For Division A, the profit margin is ($178,000 / $2,680,000) * 100 = 6.64%. For Division B, it is ($32,600 / $386,000) * 100 = 8.45%.
From these results, we can conclude that even though Division A earned more in terms of absolute values, Division B is a superior division, as it has a higher profit margin. This means that Division B is able to convert more of its revenue into profit, making it more efficient.
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Ch14 C1: Explain the purpose and nature of, and the role of ethics in, managerial accounting.
Answer and Explanation:
Purpose of Ethics- Ethical codes are the fundamental principles that accounting professionals choose to abide by to enhance their profession, maintain public trust, and demonstrate honesty and fairness.
Nature of Ethics- Independence and objectivity, Integrity, Confidentiality, professional confidence and professional behaviour.
Role of Ethics:
Understanding the ethical frameworks for independence, integrity, confidentiality and professional competence can help decision-making & enhance reputation of the field of accounting.
Answer:
Managerial accounting is a function of the internal part of a business that manages a company's financial information. Managerial accounting is often used only business to allocate business cost to goods and services
PURPOSE OF MANAGERIAL ACCOUNTING
PLANNING: managerial accounting is used to plan for future needs of the company. They plan budgets and also implement productive strategies to ensure profit
DIRECTING: this is a purpose of managerial accounting. It serves as a cooperation between employees and upper level management to answer questions and help solve problems.
CONTROLLING: the plans developed earlier by the accountants ensures that it is followed
ANALYSING: managerial accounting helps to analyse informations. They look for problematic areas and create ways to correct them to ensure increase in profit
REPORTS: Most of the goals and plans developed by the managerial accountants take the forms of report. This reports help them state clearly the conclusions they have reached and their solution to the problem.
ROLES OF ETHICS IN MANAGERIAL ACCOUNTING
Ethics are important when it comes to managerial accounting and companies usually develop a code of ethics or conduct to set expected ethical behaviour for accountants.
The IMA notes the following as ethics
Competence, Confidentiality, Integrity and Credibility.
Managerial accounting ethics ensures that all financial information is correctly relayed to business owners and managers. It also Ensures that there Is trust amongst each employees when it comes to sensitive business information