1. Discuss the concept of cost of goods sold. Why is it so important? What is the downside for you, as owner of the company, not knowing what your cost of goods sold is on an overall, product line and/or unit basis? Explain.
2. As the owner of your company, why are contribution margins and contribution margin ratios important to you?
3. Why is the break-even point important to you? If your sales are below the break-even point, would you keep your company open? Why or why not? If you closed your doors, would you still be responsible for the payment of your fixed expenses? List some of them and state the reason why.

Answers

Answer 1

1. The concept of cost of goods sold (COGS) refers to the direct costs incurred in the production of goods or services that a company sells. It includes the cost of materials, labor, and overhead directly associated with the production process. COGS is important for several reasons:

a) Profitability analysis: Knowing the COGS allows the owner to calculate the gross profit, which is the difference between the revenue from sales and the direct costs of producing those goods or services. This information is crucial for evaluating the profitability of the business and making informed decisions about pricing, cost control, and overall financial performance.

b) Inventory management: COGS helps in managing inventory effectively by providing insights into the cost of goods that have been sold. It aids in determining the value of ending inventory, which is necessary for accurate financial reporting and calculating the cost of goods available for sale.

c) Tax purposes: COGS is a key component in determining the taxable income of a business. By subtracting COGS from revenue, the owner can arrive at the gross profit, which is then used in calculating the net income and the corresponding tax liability.

Not knowing the COGS on an overall, product line, or unit basis can have several downsides for the owner:

a) Pricing decisions: Without a clear understanding of COGS, it becomes challenging to set appropriate prices for products or services. This can lead to underpricing, resulting in lower profits, or overpricing, which may deter potential customers.

b) Profitability assessment: Without accurate COGS information, it becomes difficult to assess the profitability of different product lines or units within the company. This can make it hard to identify which areas of the business are generating profits and which ones may be operating at a loss.

c) Cost control: Without knowledge of COGS, it is challenging to identify cost-saving opportunities or areas where costs can be optimized. This lack of insight can lead to inefficiencies in the production process and prevent the owner from making informed decisions to improve profitability.

2. As the owner of a company, contribution margins and contribution margin ratios are important metrics to evaluate the profitability and financial health of the business. Here's why they matter:

a) Profitability analysis: The contribution margin represents the amount of revenue that is available to cover fixed costs and contribute towards the company's profit. It helps in assessing the financial viability of individual products, services, or business segments by revealing their profitability after accounting for variable costs.

b) Decision-making: Contribution margins provide insights into the relative profitability of different products or services. This information helps the owner make informed decisions regarding resource allocation, product pricing, and determining which offerings are most financially advantageous.

c) Cost-volume-profit analysis: Contribution margin ratios are used in conducting cost-volume-profit (CVP) analysis, which helps determine the breakeven point, target sales volumes, and the impact of various cost and pricing scenarios on profitability. This analysis aids in setting strategic goals, budgeting, and forecasting.

3. The break-even point is a crucial concept for business owners as it represents the level of sales or revenue required to cover all costs and achieve a zero-profit position. Here's why it's important:

a) Profitability assessment: The break-even point helps the owner understand the minimum level of sales necessary to cover both variable and fixed costs. It serves as a benchmark to evaluate the profitability of the business and determine whether current sales volumes are sufficient to generate a profit.

b) Decision-making: The break-even analysis provides insights into the company's cost structure and pricing strategy. It helps the owner assess the impact of changes in costs, prices, or sales volumes on profitability. This information aids in making strategic decisions, such as setting sales targets, adjusting prices, or optimizing cost structures.

If sales are below the break-even point, the owner needs


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Related Questions

The general consensus among M&A empirical studies is that...?
Select one:
a.
Target shareholders and combined shareholders make insignificant positive returns but acquirer shareholders make significant negative returns
b.
Target shareholders and combined shareholders make positive returns but acquirer shareholders make insignificant returns
c.
Target shareholders make positive returns but on a combined basis shareholders make negative returns
d.
All returns except for the acquirer’s are insignificant
e.
The target makes significant positive returns in the long run

Answers

The general consensus among M&A empirical studies is that target shareholders and combined shareholders make positive returns, while acquirer shareholders make insignificant or negative returns. The correct answer is b.

Target shareholders and combined shareholders make positive returns, but acquirer shareholders make insignificant returns. This finding is based on the general consensus derived from empirical studies conducted on mergers and acquisitions (M&A) transactions.

M&A transactions involve the acquisition of one company (the target) by another company (the acquirer). Various studies have analyzed the stock market performance of companies involved in M&A deals to understand the impact on shareholders.

The consensus among these studies is that target shareholders tend to benefit from M&A transactions and experience positive returns. This is because the acquisition typically involves a premium paid to acquire the target company's shares, leading to an increase in their value.

On the other hand, acquirer shareholders may not experience significant returns or may even face negative returns. This can be attributed to various factors, such as overpaying for the target company, integration challenges, dilution of ownership, or market skepticism about the strategic fit or synergies of the deal.

However, it's important to note that while the general consensus suggests these trends, there may be variations depending on specific M&A cases and market conditions.

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The shares of two companies, K and L have the following expected returns. If I have a portfolio made up of 60% K and 40% L, my risk measured by standard deviation will be how much? data below
PROB. RETURN K. RETURN L
a. 0.3. 20%. 6%
b. 0.5. 15% 10%
c. 0.2 5% 12%

Answers

Standard Deviation of Portfolio = sqrt[(Weight of K^2 * Standard Deviation of K^2

To calculate the standard deviation of a portfolio consisting of two assets, we need to consider the weights of each asset, the standard deviations of the individual assets, and the correlation between the two assets.

Given:

Asset K weight = 60%

Asset L weight = 40%

Return of K:

Return K1 = 20%

Return K2 = 15%

Return K3 = 5%

Standard Deviation of K = 6%

Return of L:

Return L1 = 6%

Return L2 = 10%

Return L3 = 12%

Standard Deviation of L = 10%

Now, we need to calculate the weighted average return and the weighted average standard deviation.

Weighted average return:

Expected Return of Portfolio = (Weight of K * Return of K) + (Weight of L * Return of L)

Weighted average return = (0.6 * 20%) + (0.4 * 6%) = 14.4% + 2.4% = 16.8%

Weighted average standard deviation:

Standard Deviation of Portfolio = sqrt[(Weight of K^2 * Standard Deviation of K^2

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The role of Knowledge hiding on working quality and performance in the public sector
Kindly write a research proposal on the mentioned title

Answers

This research proposal aims to investigate the role of knowledge hiding on working quality and performance in the public sector. The study will explore how knowledge hiding behaviors, such as withholding information or avoiding sharing expertise, impact the quality of work and overall performance of employees in public sector organizations.

The research will provide insights into the factors influencing knowledge hiding, its consequences on working quality and performance, and potential strategies to mitigate its negative effects. The proposed research aims to examine the relationship between knowledge hiding and working quality and performance in the public sector. Knowledge hiding refers to intentional behaviors where individuals withhold or intentionally avoid sharing valuable knowledge or information with colleagues or within the organization. This phenomenon can have significant consequences on organizational outcomes, including working quality and performance.

The research will begin by conducting a thorough literature review to understand the existing knowledge on knowledge hiding and its impact on working quality and performance in both public and private sector organizations. The review will also explore the factors that contribute to knowledge hiding behaviors, such as individual characteristics, organizational culture, and perceived risks or benefits.

To gather empirical data, a survey questionnaire will be developed and administered to employees working in the public sector. The survey will assess their perception of knowledge hiding behaviors, the quality of their work, and their performance outcomes. Statistical analysis techniques, such as regression analysis, will be employed to examine the relationship between knowledge hiding and working quality and performance, controlling for relevant variables.

The research will also explore potential strategies and interventions to mitigate knowledge hiding behaviors and enhance working quality and performance in the public sector. This may involve developing training programs to promote knowledge sharing, fostering a supportive and collaborative organizational culture, and implementing incentive structures that encourage transparency and open communication.

The findings of this research will contribute to the existing literature on knowledge hiding in the public sector and provide practical implications for organizations seeking to improve working quality and performance. By understanding the factors that influence knowledge hiding and its impact on employees' work outcomes, organizations can implement targeted interventions to foster a culture of knowledge sharing and enhance overall performance.

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If the required reserve ratio is equal to 10 percent, a single bank can increase its loans up to a maximum amount equal to

10 percent of its excess reserves.

its total reserves.

10 times its excess reserves.

its excess reserves.

Answers

The correct answer to the question is that "If the required reserve ratio is equal to 10 percent, a single bank can increase its loans up to a maximum amount equal to its excess reserves."The required reserve ratio (RRR) is the percentage of its deposit liabilities that banks are required to keep on hand as reserves.

A bank's reserves are the sum of cash that is kept on hand in the bank's vaults plus any deposits held at the Federal Reserve Bank of the country.The excess reserves are the reserves held by banks above the minimum amount of reserves they are required to hold. When banks have excess reserves, they can make loans that increase the supply of money in the economy, boosting economic growth.When the RRR is 10%, a single bank can increase its loans up to a maximum amount equal to its excess reserves. Long answerWhen a bank receives deposits from its customers, it is required to hold a portion of those deposits in reserve. This is because banks face the risk of deposit withdrawals at any time, and it needs to have enough reserves to meet these demands.

The required reserve ratio is the percentage of deposits that banks are required to hold in reserve.The formula for calculating excess reserves is the total reserves held by a bank minus the required reserves. Banks that hold excess reserves can lend more money, which boosts economic activity. The maximum amount a bank can lend is equal to its excess reserves, given a certain required reserve ratio (RRR).When the RRR is 10%, a bank can lend a maximum of 90% of its deposits. For example, if a bank has $1,000 in deposits, it is required to hold $100 in reserves. If it has $150 in reserves, it has $50 in excess reserves. It can lend up to $50 to its customers, which increases the supply of money in the economy. The bank's loan capacity is limited by its excess reserves and the required reserve ratio.Answer:If the required reserve ratio is equal to 10 percent, a single bank can increase its loans up to a maximum amount equal to its excess reserves.Explanation:The excess reserves of a bank determine the maximum amount that a bank can lend. The required reserve ratio (RRR) is the percentage of deposits that banks are required to hold in reserve. When the RRR is 10%, a bank can lend a maximum of 90% of its deposits. The excess reserves are the amount of reserves held by banks above the minimum required reserves. Therefore, when the required reserve ratio is 10%, a single bank can increase its loans up to a maximum amount equal to its excess reserves.

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what is one of the major factors for success with a marketing campaign

Answers

Main answerOne of the major factors for success with a marketing campaign is creating and implementing a well-defined and focused marketing plan. Content marketing plays a crucial role in this process. Content marketing involves creating and sharing valuable, relevant, and engaging content to attract and retain a target audience.

ExplanationFor the success of a marketing campaign, creating and implementing a well-defined and focused marketing plan is one of the major factors. A marketing plan is a comprehensive strategy that outlines an organization's overall marketing goals and objectives, target markets, and marketing mix components.The success of a marketing campaign is dependent on the creation of a well-defined and focused marketing plan. This plan should be based on thorough research and analysis of the target market, competitor analysis, and a clear understanding of the company's strengths, weaknesses, opportunities, and threats.

In addition, the marketing plan should outline a budget for marketing activities, identify the channels to be used for marketing, and set measurable marketing objectives. The success of the marketing plan will also depend on the quality of the message, consistency of branding across all channels, and the execution of the plan.In conclusion, creating and implementing a well-defined and focused marketing plan is one of the major factors for success with a marketing campaign. A successful marketing plan is a comprehensive strategy that outlines an organization's overall marketing goals and objectives, target markets, and marketing mix components.

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Which Of The Following Is Considered A Change In Accounting Policy? A. Change In Allowance For Doubtful Accounts B. Change In Depreciation Method C. Change In An Asset’s Useful Life D. Change In An Asset’s Residual Value
Which of the following is considered a change in accounting policy?

a.

change in allowance for doubtful accounts

b.

change in depreciation method

c.

change in an asset’s useful life

d.

change in an asset’s residual value

Answers

The following is considered a change in accounting policy: Change in Depreciation Method.

A change in accounting policy refers to a change in the method of accounting for an item, such as changing from straight-line depreciation to the sum-of-the-years' digits method.  The choice of an accounting policy can have a significant effect on a company's financial statements.

Because the use of different accounting policies makes it difficult to compare the financial statements of different companies, the Financial Accounting Standards Board (FASB) has established criteria for selecting accounting policies.  If a change in accounting policy is made, the change should be applied retrospectively unless it is impractical to do so, in which case the company should explain why the change is being made and the effects of the change on the financial statements.

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Required information The following information applies to the questions displayed below.) a. On March 22, purchased 720 shares of RPI Company stock at $14 per share. Duke's stock investment results in it having an insignificant influence over RPI. b. On July 1, received a $1 per share cash dividend on the RPI stock purchased in part a. c. On October 8, sold 360 shares of RPI stock for $24 per share, Prepare journal entries to record the given transactions involving the short-term stock investments of Duke Company, all of which occurred during the current year View transaction list Journal entry worksheet < 1 2 3 On March 22, purchased 720 shares of RPI Company stock at $14 per share. Duke's stock investment results in it having an insignificant influence over RPI. Note: Enter debits before credits. Debit Credit Transaction General Journal a Required information [The following information applies to the questions displayed below] a. On March 22. purchased 720 shares of RPI Company stock at $14 per share. Duke's stock investment results in it having an insignificant influence over RPI. b. On July 1, received a $1 per share cash dividend on the RPI stock purchased in part a c. On October 8, sold 360 shares of RPI stock for $24 per share. Prepare journal entries to record the given transactions involving the short-term stock investments of Duke Company, all of which occurred during the current year. View transaction list Journal entry worksheet < 1 2 3 On July 1, received a $1 per share cash dividend on the RPI stock purchased in part a. Note: Enter debits before credits. Debit Credit Transaction General Journal b 12 of 25 < Prey Next > Required information (The following information applies to the questions displayed below.] a. On March 22, purchased 720 shares of RPI Company stock at $14 per share. Duke's stock investment results in it having an insignificant influence over RPI. b. On July 1, received a $1 per share cash dividend on the RPI stock purchased in part a. c. On October 8, sold 360 shares of RPI stock for $24 per share. Prepare journal entries to record the given transactions involving the short-term stock investments of Duke Company, all of which occurred during the current year View transaction list Journal entry worksheet 2 3 On October 8, sold 360 shares of RPI stock for $24 per share. Note: Enter debits before credits. Debit Credit Transaction General Journal C.

Answers

The journal entries for Duke Company's short-term stock investments involving RPI Company are as follows:

a. On March 22, when Duke Company purchased 720 shares of RPI Company stock at $14 per share, the journal entry would be:

Debit: Short-term Stock Investments - RPI Company: $10,080

Credit: Cash: $10,080

b. On July 1, when Duke Company received a $1 per share cash dividend on the RPI stock, the journal entry would be:

Debit: Cash: $720

Credit: Dividend Income: $720

c. On October 8, when Duke Company sold 360 shares of RPI stock for $24 per share, the journal entry would be:

Debit: Cash: $8,640

Credit: Short-term Stock Investments - RPI Company: $5,040

Credit: Gain on Sale of Investments: $3,600

These journal entries record the acquisition, dividend income, and sale of the short-term stock investments made by Duke Company involving RPI Company during the current year.

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Suppose that a risk-neutral investor with $10,000 to invest is considering two investment options, both with a one-year horizon. The first option is to invest in a bank deposit at the financial interest rate R-10%. The other is to invest in stocks of General Motors. The price of a share of General Motors is $20 today, and the company is expected to pay dividends equal to $1 per share over the next year. What should be the stock price of General Motors a year from today for the investor to be indifferent between the two investment options?

Answers

The stock price of General Motors a year from today should be $21 for the investor to be indifferent between the two investment options.

To determine the stock price of General Motors a year from today, we need to calculate the expected return from investing in the stock.

Option 1: Bank deposit

The risk-neutral investor can invest in a bank deposit at an interest rate of R-10%. This means the investor will receive a return of 10% on their investment after one year.

Therefore, the investor will have:

Return from bank deposit = $10,000 * 0.10 = $1,000

Option 2: General Motors stock

The investor can also choose to invest in General Motors stock. The stock price today is $20, and the company is expected to pay dividends of $1 per share over the next year.

In addition to the dividends, the investor will also consider the potential price appreciation of the stock. Let's assume the stock price a year from today is P.

Return from General Motors stock = Dividends + Price appreciation

Dividends = $1 (as given)

Price appreciation = P - $20 (the difference between the future stock price and the current stock price)

To be indifferent between the two options, the investor's return from General Motors stock should be equal to the return from the bank deposit, which is $1,000.

Therefore, we have the equation:

$1 + (P - $20) = $1,000

Simplifying the equation:

P - $20 = $1,000 - $1

P - $20 = $999

P = $999 + $20

P = $1,019

The stock price of General Motors a year from today should be $1,019 for the investor to be indifferent between the two investment options.

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one of the things that labor is interested in is fair and competent management.
True or false

Answers

True. Labor is generally interested in fair and competent management.

Workers value managers who treat them fairly, provide clear direction and guidance, and possess the necessary skills and knowledge to effectively lead and manage the organization. Fair and competent management can contribute to positive employee morale, job satisfaction, and productivity.

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Assume that you are preparing to confirm accounts receivable at December 31, 2025, which is one month prior to the fiscal year-end of January 31, 2026. The book value of gross accounts receivable is $71,622,804. Complete the following requirements related to the confirmation of receivables for Cloud 9 based on previous work and the following information.

Using PPS sampling, determine the sample size that you want to use for sending accounts receivable confirmations. The book value of accounts receivable before the allowance for doubtful accounts is $71,622,804. You make the following assumptions.
You set tolerable misstatement for accounts receivable at $3,500,000.
Expected misstatement = $750,000.
Risk of incorrect acceptance = 37%.
Using PPS sampling, determine the sample size that you want to use for sending accounts receivable confirmations. The book value of accounts receivable before the allowance for doubtful accounts is $71,622,804. You make the following assumptions:

2. What do you calculate for sample size?

3. What do you calculate for sampling interval?

Answers

To calculate the sample size using PPS (Probability-Proportional-to-Size) sampling, you need to use the following formula:

Sample Size = (Book Value of Accounts Receivable / Sampling Interval) * Reliability Factor

In this case, the book value of accounts receivable before the allowance for doubtful accounts is $71,622,804. Assuming you want to use PPS sampling, you set the tolerable misstatement for accounts receivable at $3,500,000, and the expected misstatement is $750,000.

To calculate the sample size, you need to determine the sampling interval and the reliability factor. Let's calculate them:

Sampling Interval = (Tolerable Misstatement / Book Value of Accounts Receivable) * 100

Sampling Interval = ($3,500,000 / $71,622,804) * 100

Reliability Factor = [(Risk of Incorrect Acceptance) / (1 - Risk of Incorrect Acceptance)] * [(Expected Misstatement) / (Tolerable Misstatement)]

Reliability Factor = [(37% / (1 - 37%)] * [($750,000) / ($3,500,000)]

Now, you can substitute these values into the sample size formula to calculate the sample size.

Sample Size = ($71,622,804 / Sampling Interval) * Reliability Factor

To calculate the sampling interval, you can use the formula mentioned in the previous answer:

Sampling Interval = (Tolerable Misstatement / Book Value of Accounts Receivable) * 100

This formula allows you to determine the interval at which you will select the sample for confirmation. It ensures that each account in the population has an equal chance of being selected.

By substituting the given values into the formula, you can calculate the sampling interval.

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Awal company manufactures custom door knobs for international clients. Average Revenue is $35 per unit, variable costs are $20 per unit, and total costs are $250,000. If sales are 10,000 units, what is the firm's breakeven sales quantity? A. 1,750 units B. 2,500 units C. 3,000 units D. 3,333 units

Answers

The firm's breakeven sales quantity is 16,667 units. To find the firm's breakeven sales quantity, we need to determine the point at which the total revenue equals the total costs.

Breakeven Quantity = Total Fixed Costs / Contribution Margin per unit

The contribution margin per unit is the difference between the average revenue per unit and the variable cost per unit.

Contribution Margin per unit = Average Revenue per unit - Variable Cost per unit

Contribution Margin per unit = $35 - $20 = $15

Total Fixed Costs are given as $250,000.

Breakeven Quantity = $250,000 / $15 = 16,666.67 units

Since the question asks for the breakeven sales quantity, we round up to the nearest whole number.

Therefore, the firm's breakeven sales quantity is 16,667 units, which is approximately 16,667 units. Thus, the correct answer is not provided in the options given.

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the burden of a tax falls more heavily on sellers when ________.

Answers

The burden of a tax falls more heavily on sellers when the demand for the good or service being taxed is inelastic.

A tax is a fee levied by the government on an individual's income, property, or goods purchased. Taxes are typically charged on a percentage basis, and the amount charged varies depending on the type of tax and the total amount of money being taxed.What is the burden of a tax?The burden of a tax refers to who bears the majority of the tax's financial burden. When a government imposes a tax, it has an effect on the tax's stakeholders, including consumers and producers. The burden of the tax is usually shared by both producers and consumers, but the degree to which each side is impacted is determined by several factors.What is the factor that determines who pays the most?The burden of a tax falls more heavily on sellers when the demand for the good or service being taxed is inelastic. When the good or service being taxed is essential, such as gasoline, the tax will be passed on to consumers in the form of higher prices, regardless of how much the price of gasoline rises. In this instance, sellers are more impacted since the demand for gas is inelastic, and consumers must continue to buy it even if the price rises.To summarize, the burden of a tax falls more heavily on sellers when the demand for the good or service being taxed is inelastic.

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Assuming that you were the marketing manager of Borneo Pearl company (https://borneopearls.com/). Discuss how your retail outlet (both physical & online store) would influence your potential customers at the stage of (a) need recognition, (b) information search, and (c) prepurchase evaluation of alternatives in their decision-making process. You are required to give relevant examples or (and) relevant pictures to support your answers. [word limit: 500]

Answers

Borneo Pearl's retail outlet strategically employs both physical and online platforms to engage potential customers, guiding them through the stages of need recognition, information search, and pre-purchase evaluation.

Borneo Pearl's retail outlet, consisting of both physical and online stores, plays a crucial role in influencing potential customers at different stages of their decision-making process. Through a combination of effective marketing strategies, personalized customer experiences, and engaging online platforms, Borneo Pearl can impact customers' need recognition, information search, and pre-purchase evaluation, leading to increased sales and customer satisfaction.

At the stage of need recognition, Borneo Pearl's physical store can create awareness and desire for pearl jewelry through attractive window displays, showcasing their unique designs and craftsmanship. The online store can employ targeted advertising and social media campaigns to reach a wider audience, triggering the recognition of the need for exquisite pearl jewelry.

During the information search stage, Borneo Pearl's physical store provides a tangible and immersive experience for customers, allowing them to interact with the jewelry, try them on, and receive expert advice from knowledgeable staff. The online store complements this by offering detailed product descriptions, high-resolution images, and customer reviews, providing valuable information to facilitate informed decision-making.

In the pre-purchase evaluation stage, Borneo Pearl's physical store offers a personalized and luxurious shopping environment, where customers can compare different pearl jewelry pieces, assess their quality, and receive assistance in making the right choice. The online store enhances this process by offering virtual try-on features, user-friendly navigation, and secure payment options, allowing customers to evaluate alternatives conveniently from the comfort of their homes.

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Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control costs and has established the following standards for the Maze toy:

Direct materials: 7 microns per toy at $0.33 per micron
Direct labor: 1.2 hours per toy at $6.60 per hour
During July, the company produced 5,100 Maze toys. Production data for the month on the toy follow:
Direct materials: 71,000 microns were purchased at a cost of $0.31 per micron. 26,375 of these microns were still in inventory at the end of the month.
Direct labor: 6,720 direct labor-hours were worked at a cost of $48,384.
Required:
1.
Compute the following variances for July: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

a. The materials price and quantity variances.
b. The labor rate and efficiency variances.

Answers

The material price variance is unfavorable and the material quantity variance is favorable, while the labor rate variance is unfavorable and the labor efficiency variance is favorable

Dawson Toys is a company that manufactures a toy called Maze. Recently, the company established a standard cost system to control costs and set standards for the toy as follows:Direct materials: 7 microns per toy at $0.33 per micron .Direct labor: 1.2 hours per toy at $6.60 per hour. During July, the company produced 5,100 Maze toys. Data on toy production for the month are as follows :Direct materials: 71,000 microns were purchased at a cost of $0.31 per micron. At the end of the month, 26,375 of these microns were still in inventory.Direct labor: 6,720 direct labor-hours were worked at a cost of $48,384.Required:1. Compute the following variances for July:a. The materials price and quantity variances Materials Price Variance = AQ x (AP - SP)where AQ = Actual Quantity,

AP = Actual Price and SP = Standard Price

Actual Quantity = 71,000 - 26,375 = 44,625

MPV = 44,625 x ($0.31 - $0.33) = $-562.50 (U

)Materials Quantity Variance = (AQ - SQ) x SPwhere SQ = Standard Quantity = AQ = 5,100 x 7 = 35,700MQV = (44,625 - 35,700) x $0.33 = $2,945.25 (F)

b. The labor rate and efficiency variances. Labor Rate Variance = AH x (AR - SR)where AH = Actual Hours, AR = Actual Rate and SR = Standard Rate Actual Hours = 6,720AR = $48,384 / 6,720 = $7.20 per hour

LRV = 6,720 x ($7.20 - $6.60) = $4,032 (U)

Labor Efficiency Variance = (AH - SH) x SRwhere SH = Standard Hours = AQ x SP = 44,625 x $0.33 = $14,731.25LEV = (6,720 - 6,120) x $6.60 = $3,960 (F)

Therefore, the material price variance is unfavorable and the material quantity variance is favorable, while the labor rate variance is unfavorable and the labor efficiency variance is favorable.

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In MRP, under lot-for-lot ordering, planned-order receipts are: gross requirements. open orders (that is, ordered before the first time bucket, but not delivered yet). identical to scheduled receipts. identical to net requirements. available-to-promise inventory.

Answers

In MRP (Material Requirements Planning), under lot-for-lot ordering, planned-order receipts are identical to net requirements.

Net requirements represent the quantity of materials required to fulfill the gross requirements (demand) while taking into account the on-hand inventory and any scheduled receipts (open orders) that have not been received yet. Planned-order receipts are the planned quantities to be ordered or produced to meet these net requirements.

Therefore, under lot-for-lot ordering, the planned-order receipts in MRP are identical to net requirements.

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Consider a hypothetical economy where: C(Yd)=30+2/3×(Y −T) I(r) = 52 − 0.2 × r G = 160 t = 0.4 (represents 40%).
Discuss why how the increase in G impacts Y , r and I in the context of the ideas of fiscal stimulus, spending multipliers, and crowding-out.

Answers

An increase in G increases Y, leads to a fall in r, and increases I. Fiscal stimulus increases economic activity while crowding out occurs when government spending increases and crowds out private investment.

In the given hypothetical economy, the consumption function (C) indicates that 2/3 of the disposable income (Yd) will be spent. The increase in government spending (G) will lead to a higher disposable income, thus increasing consumption. This results in an increase in Y, as it is part of the GDP equation (Y=C+I+G). The investment function (I) shows that a decrease in the interest rate (r) leads to an increase in investment.

An increase in government spending leads to a fall in r, thereby increasing investment. Crowding-out refers to the situation when an increase in government spending reduces the amount of money available for private investment. Therefore, if crowding-out occurs, I will fall and offset the initial increase in Y. Spending multipliers refer to the increase in GDP when government spending increases. If the multiplier effect is high, then Y will increase by a larger amount than the increase in G.

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On March 1, 2021, a company issued 1,000 shares of its P20 par value ordinary share and 2,000 shares of its P40 par value convertible preference share for a total consideration of P160,000. At this date, the company's ordinary shares were selling at P36 per share, and the convertible preference shares were selling at P54 per share. Determine the amount to be credited to share premium for the convertible preference share

Answers

The amount to be credited to share premium for the convertible preference shares is P40,000.

To determine the amount to be credited to share premium for the convertible preference shares, we need to calculate the difference between the total consideration received and the par value of the shares issued.

For the ordinary shares:

Par value per share = P20

Number of shares issued = 1,000

Par value for ordinary shares = P20 * 1,000 = P20,000

For the convertible preference shares:

Par value per share = P40

Number of shares issued = 2,000

Par value for convertible preference shares = P40 * 2,000 = P80,000

Total par value for both types of shares = P20,000 + P80,000 = P100,000

The total consideration received for the shares is P160,000.

Therefore, the amount to be credited to share premium for the convertible preference shares is the difference between the total consideration and the total par value, which is P160,000 - P100,000 = P60,000.

However, since we are only concerned with the convertible preference shares, which have a par value of P40 per share, the share premium for the convertible preference shares would be P40,000 (P40 * 1,000 shares).

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How much does planned investment change to close the recessionary gap? Write out the new planned expenditure function after the change in planned investment

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The specific change in planned investment required to close the recessionary gap cannot be determined without additional information. However, in general, an increase in planned investment can help close a recessionary gap by boosting aggregate demand.

Closing a recessionary gap involves increasing aggregate demand to reach the potential level of output. One way to stimulate aggregate demand is through an increase in planned investment. When businesses increase their investment spending, it can lead to higher levels of economic activity, output, and employment.

The exact amount of change in planned investment required to close the gap depends on various factors such as the size of the gap, the multiplier effect, and the responsiveness of aggregate demand to changes in investment. These factors can vary in different economic situations.

Without specific information about the size of the recessionary gap, the multiplier effect, and other relevant factors, it is not possible to calculate the exact change in planned investment needed.

The specific change in planned investment required to close a recessionary gap cannot be determined without additional information. However, increasing planned investment can help stimulate aggregate demand and contribute to closing the gap.

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through 5 are based on the following scenario.
Huishan Dairy has the biggest mark-up of all the Chinese dairy oligopolies when it comes to "Dairy Oligopolies." However, activist hedge fund Muddy Waters published a report in late 2016 claiming that the firm was a "data scam."
1. Which of the following claims about market power estimate is NOT correct?
A. If the feed is exported from a US firm rather than utilizing the company's own pasture, the company's cost should be greater than what shows on the financial statement.
B. If Huishan underreported the feed cost, the Lerner index should be lower than the estimate based on the financial statement.
C. If Huishan overstated its market share, the Lerner index should be lower than the estimate based on the financial statement.
D. According to Muddy Water's research, the company's raw milk price of RMB4144/ton is inflated since the industry average is between RMB4005 and RMB4040/ton. If this is the case, the company's mark-up should be larger.
2. Which of the following statements about Huishan Dairy's dishonest actions is TRUE?
A. Data fraud is caused by Huishan Dairy's moral hazard, which is caused by a lack of public oversight.
B. Data fraud is caused by Muddy Waters' unfavorable selection as a result of asymmetric knowledge.
C. If investors can examine the historical performances of other dairy firms, the dairy industry's collective image will be harmed.
D. If Huishan Dairy declares bankruptcy, the dairy industry's collective image may be restored.
3. What is the most probable short-term outcome of the Chinese dairy industry if Huishan declares bankruptcy and exits the market?
A. Following Huishan's departure, consumer surplus will rise.
B. Following Huishan's departure, social welfare will improve.
C. Following Huishan's leave, residual demand for existing enterprises will grow.
D. Following Huis-departure, han's overall industrial production will grow.
4. The government attempts to subsidize the dairy business. Subsidies, on the other hand, have a negative influence on the Lerner index of the dairy market, according to Chen and YU (2019). Which of the following assertions is the most probable cause?
A. Dairy companies may produce at a reduced cost and drop prices thanks to government subsidies, which makes the market more competitive.
B. Dairy enterprises may increase their production sizes and market dominance by receiving government subsidies.
C. Dairy companies may charge a higher price to their consumers and acquire greater market power if they get government subsidies.
D. Dairy enterprises merge and acquire other rivals as a result of government subsidies.
5. Which of the following statements is TRUE if government subsidies are provided to state-owned dairy companies?
A.Private enterprises' best answer is to enhance their production capacity, resulting in an increase in overall industry output.
B. The best response of private enterprises is to cut production, resulting in a reduction in total industry output.
C. Private enterprises' optimal reaction is to cut their production capacity, resulting in an increase in overall industry output.
D. State-owned enterprises obtain market dominance at a lesser cost than private enterprises.

Answers

1. A. If the feed is exported from a US firm rather than utilizing the company's own pasture, the company's cost should be greater than what shows on the financial statement is the claim about the market power estimate that is NOT correct.

2. A. Data fraud is caused by Huishan Dairy's moral hazard, which is caused by a lack of public oversight is the statement that is TRUE regarding Huishan Dairy's dishonest actions.

3. B. Following Huishan's departure, social welfare will improve is the most probable short-term outcome of the Chinese dairy industry if Huishan declares bankruptcy and exits the market.

4. C. Dairy companies may charge a higher price to their consumers and acquire greater market power if they get government subsidies is the most probable cause if the government attempts to subsidize the dairy business.

5. D. State-owned enterprises obtain market dominance at a lesser cost than private enterprises is the statement that is TRUE if government subsidies are provided to state-owned dairy companies.

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Wolfson Corporation has decided to purchase a new machine that costs $4.2 million. The machine will be depreciated on a straight-line basis and will be worthless after four years. The corporate tax rate is 22 percent. The Sur Bank has offered Wolfson a four-year loan for $4.2 million. The repayment schedule is four yearly principal repayments of $1,050,000 and an interest charge of 6 percent on the outstanding balance of the loan at the beginning of each year. Both principal repayments and interest are due at the end of each year. Cal Leasing Corporation offers to lease the same machine to Wolfson. Lease payments of $1,170,000 per year are due at the beginning of each of the four years of the lease.

a. What is the NAL of leasing for Wolfson? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.)

b. What is the maximum annual lease Wolfson would be willing to pay? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.)

Answers

To determine whether Wolfson Corporation should purchase the machine or lease it, we need to compare the net present value (NPV) of both options. We'll calculate the NPV for each option and compare them.

Option 1: Purchase the machine

Step 1: Calculate the annual depreciation expense

Depreciation expense = Cost of the machine / Useful life

Depreciation expense = $4,200,000 / 4

Depreciation expense = $1,050,000

Step 2: Calculate the tax shield from depreciation

Tax shield = Depreciation expense * Tax rate

Tax shield = $1,050,000 * 0.22

Tax shield = $231,000

Step 3: Calculate the after-tax cash flow for each year

Year 1:

After-tax cash flow = (Cost of the machine - Tax shield) + (Interest payment - Tax shield)

After-tax cash flow = ($4,200,000 - $231,000) + ($1,050,000 - $231,000)

After-tax cash flow = $3,969,000

Years 2-4:

After-tax cash flow = (Depreciation expense - Tax shield) + (Interest payment - Tax shield)

After-tax cash flow = ($1,050,000 - $231,000) + ($1,050,000 - $231,000)

After-tax cash flow = $1,839,000

Step 4: Calculate the NPV of the cash flows

Discount rate = Interest rate = 6%

NPV = (After-tax cash flow / (1 + Discount rate)^Year) + ... + (After-tax cash flow / (1 + Discount rate)^Year)

NPV = ($3,969,000 / (1 + 0.06)^1) + ($1,839,000 / (1 + 0.06)^2) + ($1,839,000 / (1 + 0.06)^3) + ($1,839,000 / (1 + 0.06)^4)

NPV ≈ $6,461,690.79

Option 2: Lease the machine

Step 1: Calculate the NPV of the lease payments

Lease payment = $1,170,000 per year

Discount rate = Interest rate = 6%

NPV = (Lease payment / (1 + Discount rate)^Year) + ... + (Lease payment / (1 + Discount rate)^Year)

NPV = ($1,170,000 / (1 + 0.06)^1) + ($1,170,000 / (1 + 0.06)^2) + ($1,170,000 / (1 + 0.06)^3) + ($1,170,000 / (1 + 0.06)^4)

NPV ≈ $3,544,773.52

Comparison:

The NPV of purchasing the machine is approximately $6,461,690.79, while the NPV of leasing the machine is approximately $3,544,773.52. Based on the NPV analysis, it is more financially favorable for Wolfson Corporation to purchase the machine rather than leasing it.

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Multimedia project, "MSC" is just about to begin. The project is implemented by Limkokwing
University of Creative Technology and the customer is MDeC (Multimedia Development
Corporation). Your task is to design an organization structure to implement the project. The
following stakeholders should be included in the organization structure:
 Project manager
 Subcontractor (for example software supplier)
 Project steering committee
 Project team
 Authorities
 Customer
i. Describe the tasks of each stakeholder in the project and how they interact with each
other. Draw an organization structure diagram for the project.
ii. Briefly explain the difference between functional, matrix and project organizations.
Describe how each structure affects the management of projects.
iii. Explain why making a good project plan is important for the success of the MSC project.
iv. Explain why reporting among above stakeholders, plays an important role in this
multimedia project.

Answers

i. Description of tasks of each stakeholder:Project Manager: The task of the project manager is to manage the project and coordinate with the different stakeholders of the project.Subcontractor (for example software supplier): The task of the subcontractor is to complete the work allocated to them by the project manager.

Project Steering Committee: The task of the project steering committee is to provide guidance and direction to the project manager.Project Team: The task of the project team is to work on the project tasks and report the progress to the project manager.Authorities: The task of the authorities is to provide necessary permissions and approvals to the project.Customer: The task of the customer is to provide requirements and review the deliverables. The stakeholders interact with each other as below:Project Manager: Interacts with the subcontractor, project steering committee, project team, authorities, and customer.Subcontractor: Interacts with the project manager.

Project Steering Committee: Interacts with the project manager.Project Team: Interacts with the project manager.Authorities: Interacts with the project manager.Customer: Interacts with the project manager.ii. The difference between functional, matrix, and project organizations are:Functional organization: In the functional organization, the employees are grouped according to their areas of expertise. The management of projects in the functional organization is done by the functional manager.

Matrix organization: In the matrix organization, the employees are grouped according to their areas of expertise as well as the project they are working on. The management of projects in the matrix organization is done by the project manager.Project organization: In the project organization, the employees are grouped according to the project they are working on. The management of projects in the project organization is done by the project manager.iii. Importance of making a good project plan for the success of the MSC project:A good project plan is important for the success of the MSC project because it helps in the following ways:It provides a roadmap for the project.It helps in identifying the critical path and milestones.It helps in resource planning and allocation.

It helps in managing the risks and issues.It helps in tracking the progress and status of the project.iv. Importance of reporting among above stakeholders in this multimedia project:Reporting among the above stakeholders is important in this multimedia project because it helps in the following ways:It helps in keeping everyone informed about the progress and status of the project.It helps in identifying the risks and issues at an early stage.It helps in making timely decisions to resolve the risks and issues.It helps in maintaining transparency and accountability among the stakeholders.

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ssume that you manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 35%. The T-bill rate is 5%. Your client chooses to invest 70% of a portfolio in your fund and 30% in an essentially risk-free money market fund.

Suppose that your risky portfolio includes the following investments in the given proportions:

Stock A 25 %
Stock B 35 %
Stock C 40 %

Answers

The expected value of the rate of return on the client's portfolio is 18.5% and the standard deviation is 19.49%.

To calculate the expected value and standard deviation of the rate of return on the client's portfolio, we can use the following formula:

Expected Value of Portfolio Return = (Weight of Stock A * Expected Return of Stock A) + (Weight of Stock B * Expected Return of Stock B) + (Weight of Stock C * Expected Return of Stock C) + (Weight of Risk-Free Fund * Risk-Free Rate)

Standard Deviation of Portfolio Return = √[(Weight of Stock A^2 * Variance of Stock A) + (Weight of Stock B^2 * Variance of Stock B) + (Weight of Stock C^2 * Variance of Stock C)]. Given:

Expected Return of Stock A = 17%

Expected Return of Stock B = 17%

Expected Return of Stock C = 17%

Variance of Stock A = (Standard Deviation of Stock A)^2 = (35%)^2 = 0.1225

Variance of Stock B = (Standard Deviation of Stock B)^2 = (35%)^2 = 0.1225

Variance of Stock C = (Standard Deviation of Stock C)^2 = (35%)^2 = 0.1225

Risk-Free Rate = 5%

Weight of Stock A = 25%

Weight of Stock B = 35%

Weight of Stock C = 40%

Weight of Risk-Free Fund = 30%

Calculations: Expected Value of Portfolio Return = (0.25 * 17%) + (0.35 * 17%) + (0.40 * 17%) + (0.30 * 5%) = 4.25% + 5.95% + 6.8% + 1.5% = 18.5%

Standard Deviation of Portfolio Return = √[(0.25^2 * 0.1225) + (0.35^2 * 0.1225) + (0.40^2 * 0.1225)] = √[0.0030625 + 0.01530625 + 0.0196] = √0.03796875 = 19.49%.Therefore, the expected value of the rate of return on the client's portfolio is 18.5% and the standard deviation is 19.49%.

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1. Profit is: A) TR-FC. B) Qx (P-AVC). C) (PQ)-TC. D) All of the above. 2. In defining economic costs, economists recognize: A) Explicit and implicit costs while accountants recognize only implicit costs. B) Explicit and implicit costs while accountants recognize only explicit costs. C) Only explicit costs while accountants recognize only implicit costs. D) Only explicit costs while accountants recognize explicit and implicit costs

Answers

The correct answer for the first question is D) All of the above. Profit can be calculated using different formulas, including TR-FC, Qx (P-AVC), and (PQ)-TC. For the second question, economists recognize both explicit and implicit costs, while accountants typically focus only on explicit costs. Therefore, the answer is A) Explicit and implicit costs while accountants recognize only implicit costs.

Profit is a measure of the financial gain obtained by a firm or individual. It can be calculated using different formulas, depending on the context.

TR-FC (Total Revenue minus Fixed Costs) represents the profit as the difference between total revenue and fixed costs.

Qx (P-AVC) refers to profit as the difference between the quantity sold (Q) multiplied by the difference between price (P) and average variable cost (AVC).

(PQ)-TC represents profit as the difference between total revenue (price multiplied by quantity) and total cost (including both fixed and variable costs).

Since profit can be calculated using any of these formulas, the correct answer is D) All of the above.

Economic costs encompass both explicit and implicit costs. Explicit costs are actual out-of-pocket expenses, such as wages, rent, and raw materials, that are incurred in the production process. Implicit costs, on the other hand, are the opportunity costs of using resources for a particular purpose instead of their next best alternative.

Economists recognize both explicit and implicit costs in their analysis because implicit costs capture the opportunity cost of using resources, such as the foregone income from alternative uses. In contrast, accountants typically focus only on explicit costs when preparing financial statements.

Therefore, the correct answer is A) Explicit and implicit costs while accountants recognize only implicit costs.

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how many free trade zones are currently operational in the dominican republic

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Answer:

As of my knowledge cutoff in September 2021, the Dominican Republic had several operational free trade zones. However, please note that the number of free trade zones may have changed since then. It is recommended to consult the latest information from official government sources or the Dominican Republic's Ministry of Industry, Commerce, and Mipymes for the most up-to-date and accurate data on the number of operational free trade zones in the country.

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Loanable Funds Market Money Market Interest rate Interest rate Ms Supply XX Md Demand QLF Q$$$ QLF The graphs above represent the Money Market and the Loanable Funds Market. The Money Market graph is used to show how short- term interest rates are determined. The Loanable Funds Market graph is used to show how long-term interest rates are determined. a. In the Money Market, who/what determines the amount of money in circulation (Ms)? What VERY strong assumption are we making about Ms (money supply) in this graph? b. Explain carefully what happens to short-term interest rates if more money is put into circulation. c. In the Loanable Funds Market, which curve represents the 'savers'? Which curve represents the 'borrowers'?

Answers

a. In the Money Market, the central bank (such as the Federal Reserve in the United States) determines the amount of money in circulation, which is represented by the money supply curve (Ms). The very strong assumption made in this graph is that the money supply is fixed or exogenously determined by the central bank.

This assumption implies that the central bank controls the quantity of money in the economy and can adjust it as needed.

b. If more money is put into circulation in the Money Market, it would shift the money supply curve (Ms) to the right. This increase in the money supply would lead to an excess supply of money in the market. To restore equilibrium, short-term interest rates would decrease. This is because individuals and institutions would be willing to lend out the excess money at lower interest rates to earn a return.

c. In the Loanable Funds Market, the supply curve (S) represents the savers, as it represents the quantity of funds supplied by individuals and institutions who have excess savings and are willing to lend them out. The demand curve (D) represents the borrowers, as it represents the quantity of funds demanded by individuals and institutions who want to borrow money for investment or consumption purposes. The intersection of the supply and demand curves determines the equilibrium interest rate in the loanable funds market.

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Answer the following questions using your financial calculator or Excel functions: (a) What is the present value of $31,600 to be received in 15 years; i = 7%. Present value $ What is the present value of a 20-year annuity of $2,700 per year; i = 4%. Present value $ $ What is the present value of a 5-year annuity of $3,500 with the first payment to be received 3 years from now; i = 8%. (Round answer to 0 decimal places, e.g. 5,275.) Present value $ What will be your annual payment if you take now a loan of $166,000 with annual equal repayments over the next 12 years?i = 6%. Annual payment $ You take out a loan in the amount of $266,000 with annual equal repayments over the next 20 years. What is the balance of the loan after the 5th payment?i= 8%. Balance of the loan $

Answers

To calculate the present value of a future amount, you can use the formula: Present Value = Future Value / (1 + i)^n

Where i is the interest rate and n is the number of years.

1. Present value of $31,600 to be received in 15 years; i = 7%:

  Present Value = $31,600 / (1 + 0.07)^15

  Present Value ≈ $11,279.24

2. Present value of a 20-year annuity of $2,700 per year; i = 4%:

  Present Value = $2,700 * [(1 - (1 + 0.04)^-20) / 0.04]

  Present Value ≈ $43,867.72

3. Present value of a 5-year annuity of $3,500 with the first payment to be received 3 years from now; i = 8%:

  Present Value = $3,500 * [(1 - (1 + 0.08)^-5) / 0.08] / (1 + 0.08)^3

  Present Value ≈ $11,968.99

4. Annual payment for a loan of $166,000 with annual equal repayments over the next 12 years; i = 6%:

  Annual Payment = $166,000 * (0.06 / (1 - (1 + 0.06)^-12))

  Annual Payment ≈ $22,557.94

5. Balance of the loan after the 5th payment for a loan of $266,000 with annual equal repayments over the next 20 years; i = 8%:

  Remaining Balance = $266,000 * ((1 + 0.08)^5 - (1 + 0.08)^5) / ((1 + 0.08)^20 - 1)

  Remaining Balance ≈ $231,967.36

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Which of the following would not increase Aggregate Demand?
a
Increased Consumption
b
Increased Government Expenditure
c
Increased Investment Expenditure
d
Decrease in overall

Answers

Aggregate Demand can be defined as the total demand for final goods and services in an economy.  In order to increase the Aggregate Demand, any of these four components need to increase as well. Of the options given, the answer is d) Decrease in overall.


An overall decrease can be in any of the components of aggregate demand. This decrease can be in consumption, investment, government spending, or net exports. A decrease in any of these components would reduce the Aggregate Demand.

The components of aggregate demand include Consumption, Investment, Government Spending, and Net Exports (Exports - Imports).

An increase in consumption, investment, or government spending increases the Aggregate Demand, while an increase in net exports increases the Aggregate Demand when exports are greater than imports.

For instance, if a country has a surplus in exports and the exports of the country exceed its imports, the country will experience an increase in Aggregate Demand. On the other hand, if a country has a deficit in exports and the imports of the country exceed its exports, the country will experience a decrease in Aggregate Demand.

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For each of the following independent situations, indicate whether there is an apparent internal control weakness, and, if one exists, suggest two alternative procedures to eliminate the weakness.
John Smith is the petty cash custodian. John approves all requests for payment out of the $200 fund, which is replenished at the end of each month. At the end of each month, John submits to his supervisor a list of all accounts and amounts to be charged, along with supporting documentation. Once the supervisor indicates approval, a check is written to replenish the fund for the total amount. John’s supervisor performs surprise counts of the fund to ensure that the cash and/or receipts equal $200 at all times.
All of the company’s cash disbursement are made by check. Each check must be supported by an approved voucher, which is in turn supported by the appropriate invoice and, for purchases, a receiving document. The vouchers are approved by Dean Leiser, the chief accountant, after reviewing the supporting documentation. Betty Hanson prepares the checks for Leiser’s signature. Leiser also maintains the company’s check register (the cash disbursements journal) and reconciles the bank account at the end of each month.
Fran Jones opens the company’s mail and makes a listing of all checks and cash received from customers. A copy of the list is sent to Jerry McDonald who maintains the general ledge accounts. Fran prepares and makes the daily despite at the bank. Fran also maintains the subsidiary ledger for accounts receivable, which is used to generate monthly statements to customers.

Answers

Situation 1:John Smith is the petty cash custodian.John approves all requests for payment out of the $200 fund, which is replenished at the end of each month. At the end of each month,

john submits to his supervisor a list of all accounts and amounts to be charged, along with supporting documentation. Once the supervisor indicates approval, a check is written to replenish the fund for the total amount. John’s supervisor performs surprise counts of the fund to ensure that the cash and/or receipts equal $200 at all times.Internal Control Weakness: The petty cash custodian, John Smith, has full control and authority over the approval and disbursement of petty cash without any oversight or separation of duties.

Alternative Procedures:1. Implement a dual control system: Assign another employee or supervisor to review and approve petty cash requests independently. This introduces an additional level of control and reduces the risk of unauthorized disbursements.2. Conduct periodic surprise audits: In addition to the supervisor's surprise counts, perform periodic surprise audits of the petty cash fund by an independent party. This ensures that the fund is properly managed and discourages any potential misappropriation.

Situation 2:All of the company’s cash disbursements are made by check. Each check must be supported by an approved voucher, which is in turn supported by the appropriate invoice and, for purchase , a receiving document. The vouchers are approved by Dean Leiser, the chief accountant, after reviewing the supporting documentation. Betty Hanson prepares the checks for Leiser’s signature. Leiser also maintains the company’s check register (the cash disbursements journal) and reconciles the bank account at the end of each month.

Internal Control Weakness: Dean Leiser, the chief accountant, has control over multiple aspects of the cash disbursement process, including approving vouchers, signing checks, maintaining the check register, and reconciling the bank account. This lack of segregation of duties creates a potential risk for fraudulent activities.Alternative Procedures:1. Segregate duties: Assign a separate employee to handle the preparation of checks and have Dean Leiser review and sign them. This separation of duties ensures that no one individual has complete control over the entire cash disbursement process.

2. Conduct periodic internal audits: Perform periodic internal audits of the cash disbursement process by an independent internal audit team. This helps to identify any irregularities or potential weaknesses in the control environment and provides assurance that the process is functioning effectively.Situation 3:Fran Jones opens the company’s mail and makes a listing of all checks and cash received from customers. A copy of the list is sent to Jerry McDonald, who maintains the general ledger accounts. Fran prepares and makes the daily deposit at the bank. Fran also maintains the subsidiary ledger for accounts receivable, which is used to generate monthly statements to customers.

Internal Control Weakness: Fran Jones has control over multiple aspects of the cash receipts process, including opening the mail, preparing the deposit, and maintaining the accounts receivable subsidiary ledger. This lack of segregation of duties poses a risk for potential misappropriation or errors.Alternative Procedures:

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There are seven steps in the Strategic Sourcing Methodology. Name at least five, and choose two to discuss in more detail. ( please do not copy previous chegg answers)

Answers

Strategic sourcing is a comprehensive approach to procurement that aims to identify and optimize opportunities for sourcing goods and services to achieve cost savings, enhance quality, and mitigate risks. The seven steps in the Strategic Sourcing Methodology are:

Assess Current State: This involves evaluating the current sourcing practices, understanding the organization's needs, and identifying areas for improvement.

Define Sourcing Strategy: In this step, the organization determines its goals and objectives for sourcing, defines the scope of the sourcing initiative, and establishes criteria for supplier selection.

Market Research and Analysis: Conducting market research helps identify potential suppliers, understand market trends, and assess supplier capabilities, pricing, and performance.

Supplier Evaluation and Selection: This step involves evaluating and selecting suppliers based on predetermined criteria such as cost, quality, delivery, and sustainability. It may include issuing requests for proposals (RFPs) or conducting negotiations.

Contract Negotiation: Negotiating contractual terms and conditions with selected suppliers to ensure favorable pricing, service levels, and risk mitigation. This step is crucial for establishing a mutually beneficial agreement.

Transition and Implementation: Once contracts are finalized, the organization manages the transition from the previous suppliers to the newly selected suppliers, ensuring a smooth implementation process.

Performance Monitoring and Continuous Improvement: Monitoring supplier performance against established metrics and conducting regular performance reviews to drive continuous improvement and address any issues that arise.

Two steps that can be discussed in more detail are:

Market Research and Analysis: This step plays a critical role in identifying potential suppliers and understanding the market landscape. It involves conducting thorough research to gather information on suppliers, market trends, pricing, and supplier capabilities. This includes analyzing supplier profiles, reviewing industry reports, attending trade shows, and leveraging online resources. Market research helps the organization make informed decisions about supplier selection and negotiate favorable terms.

Contract Negotiation: Contract negotiation is a crucial step in strategic sourcing as it determines the terms and conditions of the agreement with suppliers. This involves reaching mutually beneficial agreements on pricing, payment terms, quality standards, delivery schedules, and other contractual clauses. Effective negotiation skills are essential in securing the best possible terms and ensuring a fair and sustainable relationship with suppliers. Successful contract negotiation can lead to cost savings, improved supplier performance, and reduced risks.

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Kingdom Corporation has the following. Proferred stock, $10 par value, 7%, 50,000 shares issued $500,000 Common stock, $15 par value, 300,000 shares issued and outstanding $4,500,000 In 2020, The company declared and paid $30,000 of cash dividends. In 2021, The company declared and paid $150,000 of cash dividend Required: How much is the TOTAL, cash dividends that will be distributed to preferred and common stockholders over the two years, assuming the preferred stock is i Non-cumulative Please DO NOT use the "S" and "." signs in you answer. For example, if the right answer is Preferred $10,000 and Common $15,000, it should be EXACTLY written as: 10000 16000 Preferre Common 2 points Friends Partnership has three partners. The balance of each partner' capital is Alia $48,000; Mariam $50,000 and Fatima $52,000 Alia withdraws from the Partnership The remaining partners, Mariam and Fatima, agreed to pay cash of $56,000 for Alia from partnership. The partners share income and loss equally Required How much is the capital balance for the remaining partners Mariam and Fatima after the withdrawal of Alia Please DO NOT use the "S" and "," signs in you ansewr. For example, if the right answer is Mariam $75,000 and Fatima $85,000, it should be EXACTLY written as: 75000 85000 Mariam Fatima

Answers

The total cash dividends that will be distributed to preferred and common stockholders over the two years can be calculated as follows:

In 2020:

Preferred stock dividend: 7% of $500,000 = $35,000

Common stock dividend: $30,000

In 2021:

Preferred stock dividend: 7% of $500,000 = $35,000

Common stock dividend: $150,000

Total cash dividends:

Preferred stock dividend: $35,000 + $35,000 = $70,000

Common stock dividend: $30,000 + $150,000 = $180,000

Therefore, the total cash dividends distributed to preferred and common stockholders over the two years would be:

Preferred stock: $70,000

Common stock: $180,000

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