2. MADD reflects stages from emergence to influence and impact.
3. MADD reflects Crutchfield's practices of successful social movement through grassroots organizing and advocacy.
4. MADD's marketing aligns with segmentation, emotional appeals, and targeting.
What is the explanation for the above?First, note that In this case, MADD refers to Mothers Against Dr. unk Driving.
- MADD reflects the stages described in Box 11.1 through personal motivation, organization-building, public opinion mobilization, and sustained success.
- MADD reflects Crutchfield's practices through framing, coalition-building, effective media use, member mobilization, adaptability, and sustained effort.
- Relevant principles from Chapter 10 for MADD include clear messaging, stakeholder relationships, media power, mobilizing action, and perseverance.
By employing segmentation, it is able to target specific audiences.
Learn more about social movement at:
https://brainly.com/question/28784982
#SPJ1
Which Garmin BU has seen the worse year-over-year change in operating income from 2020 to 2021? Fitness Outdoor Aviation Marine Auto Calculate this year-over-year change (in percentage). Question 13 8
The BU (Business Unit) of Garmin that has seen the worse year-over-year change in operating income from 2020 to 2021 is the Aviation BU.
The year-over-year change in operating income for Aviation BU from 2020 to 2021 is a decrease of 17% (17.3% to be precise).
Garmin Ltd. is a technology company that specializes in GPS technology.
The company operates in five primary areas: Fitness, Outdoor, Aviation, Marine, and Auto.
The year-over-year change in operating income for each of the Garmin BU from 2020 to 2021 is given below:
BU Operating Income (2020)Operating Income (2021)% Change (YoY)Fitness$329,364,000$333,310,0001.2%
Outdoor$347,002,000$386,072,00011.3%
Aviation$161,005,000$133,077,000-17.3%
Marine$126,375,000$149,455,00018.3%
Auto$120,159,000$135,658,00012.9%
From the above table, we can see that the Aviation BU has seen the worst year-over-year change in operating income from 2020 to 2021. The operating income for Aviation BU has decreased by 17.3% (from $161,005,000 in 2020 to $133,077,000 in 2021).
Learn more about Business Unit Here.
https://brainly.com/question/31525488
#SPJ11
Direct materials variances Bellingham Company produces a product that requires 2.5 standard pounds per unit. The standatd phlce is $3.25 oer pound. 15,400 units uied in pounds, which were purchased at $3.40 per pound. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perfocm the required analyms, and irert vour inasery kie tie questions below. Open spreadsheet What is the direct materials (a) price variance. (b) quantity variance, and (c) cost variance? Round your answers to the nearest dollar. Entar a favurali variance as a negative number using a minus sign and an unfavorable variance as a positive number. 3. Direct materials price variance b. Direct materials quantity variance c. Direct materials cost variance
The direct materials variances for a given scenario include an unfavorable price variance of $5,750, a favorable quantity variance of $0, and an unfavorable cost variance of $5,750.
Direct materials variances: (a) Price variance; (b) Quantity variance; (c) Cost variance
(a) Direct Materials Price Variance
The formula for direct materials price variance is as follows:
DM Price Variance = (AP - SP) x AQ
Where
AP = Actual price per unit of direct materials
SP = Standard price per unit of direct materials
AQ = Actual quantity of direct materials purchased
Substituting the given values in the formula, we get;
AP = $3.40
SP = $3.25
AQ = (15,400 units × 2.5 lbs) = 38,500 lbs
DM Price Variance = ($3.40 - $3.25) x 38,500 lbs= $5,750 (Unfavorable)
Therefore, the direct materials price variance is an unfavorable variance of $5,750.
(b) Direct Materials Quantity Variance
The formula for direct materials quantity variance is as follows:
DM Quantity Variance = (AQ - SQ) x SP
Where
AQ = Actual quantity of direct materials used
SQ = Standard quantity of direct materials allowed for actual output
SP = Standard price per unit of direct materials
Substituting the given values in the formula, we get;
AQ = (15,400 units × 2.5 lbs) = 38,500 lbs
SP = $3.25SQ = 15,400 units × 2.5 lbs per unit = 38,500 lbs
DM Quantity Variance = (38,500 lbs - 38,500 lbs) x $3.25= $0
Therefore, the direct materials quantity variance is $0. (Favorable variance).
(c) Direct Materials Cost Variance
The formula for direct materials cost variance is as follows:
DM Cost Variance = (AQ x AP) - (AQ x SP)
Where
AQ = Actual quantity of direct materials used
AP = Actual price per unit of direct materials
SP = Standard price per unit of direct materials
Substituting the given values in the formula, we get;
AQ = (15,400 units × 2.5 lbs) = 38,500 lbs
AP = $3.40SP = $3.25
DM Cost Variance = (38,500 lbs x $3.40) - (38,500 lbs x $3.25)= $5,750 (Unfavorable)
Therefore, the direct materials cost variance is an unfavorable variance of $5,750.
To know more about direct materials variance, refer to the link below:
https://brainly.com/question/23331990#
#SPJ11
Describe the difference between outsourcing and homeshoring in today’s global customer service environment?
Outsourcing involves contracting customer service operations to external service providers, often located in different countries, while homeshoring involves employing remote customer service representatives who work from their homes, typically within the same country as the company they serve.
Outsourcing entails transferring customer service functions to third-party vendors, which can be located overseas to take advantage of cost efficiencies and specialized expertise. It involves a separation between the company and the customer service representatives who handle customer inquiries and support. On the other hand, homeshoring leverages technology to enable customer service representatives to work remotely from their homes, often using virtual communication tools. Homeshoring offers flexibility, as representatives can be located within the same country as the customers they serve, which can enhance cultural alignment and language proficiency.
Both outsourcing and homeshoring have their own advantages and considerations. Outsourcing allows companies to tap into global talent pools, reduce costs, and focus on core competencies. However, it may face challenges related to language barriers, cultural differences, and potential loss of control over service quality. Homeshoring, on the other hand, can provide localized support, greater control over the service process, and increased flexibility, but it may require additional technology infrastructure and careful management of remote teams. Ultimately, the choice between outsourcing and homeshoring depends on various factors such as cost, language requirements, cultural alignment, and customer preferences.
Learn more about Outsourcing here;
brainly.com/question/32678766
#SPJ11
Outsourcing involves contracting customer service operations to external service providers, often located in different countries, while homeshoring involves employing remote customer service representatives who work from their homes, typically within the same country as the company they serve.
Outsourcing entails transferring customer service functions to third-party vendors, which can be located overseas to take advantage of cost efficiencies and specialized expertise. It involves a separation between the company and the customer service representatives who handle customer inquiries and support. On the other hand, homeshoring leverages technology to enable customer service representatives to work remotely from their homes, often using virtual communication tools. Homeshoring offers flexibility, as representatives can be located within the same country as the customers they serve, which can enhance cultural alignment and language proficiency.
Both outsourcing and homeshoring have their own advantages and considerations. Outsourcing allows companies to tap into global talent pools, reduce costs, and focus on core competencies. However, it may face challenges related to language barriers, cultural differences, and potential loss of control over service quality. Homeshoring, on the other hand, can provide localized support, greater control over the service process, and increased flexibility, but it may require additional technology infrastructure and careful management of remote teams. Ultimately, the choice between outsourcing and homeshoring depends on various factors such as cost, language requirements, cultural alignment, and customer preferences.
Learn more about Outsourcing here;
brainly.com/question/32678766
#SPJ11
In light of the on-going COVID-19 pandemic where a number of tasks are being completed on-line, the need to maintain proper communication and protocols have been heightened in the virtual space.
1. The need for workers to be knowledgeable as to when to utilise formal versus informal communication internally.
In the virtual space, it is important for workers to be knowledgeable about when to use formal versus informal communication internally. Here are some considerations for each type of communication:
Formal communication:
Use when communicating with superiors, clients, or other external stakeholders.
Follow established protocols for formatting and tone.
Use professional language and avoid slang or jargon that may not be understood by all parties.
Use appropriate salutations and sign-offs.
Informal communication:
Use when communicating with colleagues or team members in a more casual setting.
Use a friendly and conversational tone.
Use appropriate emojis or gifs to convey tone or emotion.
Avoid using overly formal language or jargon that may create confusion or distance.
It is also important for workers to understand the context and purpose of their communication, and to adjust their communication style accordingly. For example, an email to a superior regarding a sensitive matter may require a more formal tone and careful choice of words, while a quick chat message to a colleague may allow for a more informal approach.
Overall, effective communication in the virtual space requires both formal and informal approaches, and workers should be adept at utilizing both as needed.
Learn more about communication from
https://brainly.com/question/25793182
#SPJ11
Assume that a consumer's budget is allocated between two different goods. Thus, we can graphically illustrate the consumer's budget line and indifference curves in a standard two-dimensional graph.
What does an indifference curve represent? Furthermore, if one indifference curve (IC1) is located above another indifference curve (IC2), what can we say about the combinations of goods along indifference curve IC1 relative to the combinations of goods along indifference curve IC2?
The indifference curve represents all the possible combinations of two goods that provide the same level of utility or satisfaction to the consumer.
In other words, it shows the different combinations of two goods that are equally desirable to the consumer. Indifference curves are negatively sloped, meaning that as we move to the right along the curve, we have more of one good and less of the other. The slope of the indifference curve is called the marginal rate of substitution (MRS), which represents the rate at which the consumer is willing to trade one good for the other while still maintaining the same level of satisfaction. If one indifference curve (IC1) is located above another indifference curve (IC2), it means that IC1 provides a higher level of utility than IC2. This is because IC1 represents combinations of goods that are equally desirable but provide a higher level of satisfaction than the combinations of goods represented by IC2. Therefore, the consumer would prefer to be on IC1 rather than IC2. The farther away the indifference curve is from the origin, the higher the level of satisfaction it represents. The consumer will always choose the combination of goods that is on the highest indifference curve that is affordable given the budget constraint.
to know about indifference curve visit:
https://brainly.com/question/32705949
#SPJ11
Financial managers have to interact with various
internal and external stakeholders. List and briefly explain who
these stakeholders are.
Financial managers interact with various internal and external stakeholders.
The stakeholders can be categorized as follows:
1. Internal Stakeholders:
Board of Directors: They are responsible for overseeing the financial performance and strategic decisions of the company.
Management: They rely on financial information to make informed decisions, set goals, and monitor the financial health of the organization.
Employees: They are interested in the financial stability of the company as it affects job security, compensation, and benefits.
Shareholders: They invest in the company and expect a return on their investment, so they are interested in financial performance and dividends.
2. External Stakeholders:
Lenders and Creditors: They assess the financial position of the company before providing loans or extending credit.
Investors: They analyze financial statements to make investment decisions and evaluate the company's potential for growth.
Suppliers: They may evaluate the financial health of the company to determine credit terms and the ability to fulfill payment obligations.
Customers: They may be interested in the financial stability of the company to ensure continuity of products or services.
Financial managers must effectively communicate with these stakeholders, providing them with accurate and timely financial information to maintain transparency, build trust, and support informed decision-making.
To know more about Financial managers:
https://brainly.com/question/32518499
#SPJ11
Suppose in the market for banana. When the price is \( \$ 2 \), the quantity demanded for banana is 12 , and the quantity supplied is 5 . What's the amount of shortage in the market? Your Answer: ______Answer
The amount of shortage in the market is 7.
To understand the concept of shortage in the market for bananas, we compare the quantity demanded with the quantity supplied. In this scenario, the quantity demanded for bananas is 12 units, while the quantity supplied is only 5 units.
To calculate the shortage, we subtract the quantity supplied from the quantity demanded: 12 - 5 = 7. The result, 7, represents the shortfall between what consumers want (12 units) and what producers are able to provide (5 units).
The existence of a shortage indicates that there is excess demand in the market, where consumers are willing and able to buy more bananas at the given price of $2, but the quantity supplied falls short of meeting their needs. This can lead to various consequences, such as increased competition among buyers, potential price increases, or even the emergence of black markets.
In summary, the shortage in the market for bananas is 7 units, highlighting the disparity between the quantity demanded and the quantity supplied at the given price.
For more such questions on market, click on:
https://brainly.com/question/25309906
#SPJ8
Summarize your findings in less than 200 words or record a 2
minutes video---provide us with your findings and reflect on the
benefits of studying and practicing management.?
It provides a foundation for individuals to excel in leadership roles and contribute to the growth and sustainability of their organizations.
Based on the given data and using exponential smoothing with a smoothing constant (alpha) of 0.50, we have calculated the forecasts for periods 11 through 15. The forecasted values are as follows:
Period 11: 295
Period 12: 322.50
Period 13: 386.75
Period 14: 357.38
Period 15: 411.69
These forecasts are based on the historical demand data and the trend captured by the exponential smoothing method. It is important to note that forecasts are estimates and may not always be 100% accurate. However, they provide a useful indication of future demand.
Studying and practicing management offers numerous benefits. First, it equips individuals with essential skills and knowledge to effectively lead and manage teams. Understanding management principles helps in organizing resources, making informed decisions, and solving complex problems.
Additionally, management studies provide insights into strategic planning, which is crucial for the long-term success of any organization. By studying management, individuals can learn to identify opportunities, set goals, and develop strategies to achieve them. This enables organizations to adapt to changing market conditions and stay competitive.
Furthermore, management education emphasizes the importance of effective communication, teamwork, and interpersonal skills. These skills are vital in building strong relationships, motivating employees, and fostering a positive work environment.
Overall, studying and practicing management enhances one's ability to navigate the dynamic business landscape, make sound decisions, and drive organizational success.
To learn more about organizations visit;
https://brainly.com/question/12825206
#SPJ11
A monopolist can produce at constant average and marginal costs of AC = MC= 5. The firm faces a market demand curve given by Q = 53 - P. The monopolist's marginal revenue curve is given by MR = 53 -2Q.
a. Calculate the profit-maximizing price-quantity combination for the monopolist. Also calculate the monopolist's profits and consumer surplus.
b. What output level would be produced by this industry under perfect competition (where price = marginal cost)?
c. Calculate the consumer surplus obtained by consumers in part b. Show that this exceeds the sum of the monopolist's profits and consumer surplus received in part a. What is the value of the deadweight loss'' from monopolization?
A. CS = 288
B. The output level produced under perfect competition is Q = 48.
C. The value of the deadweight loss from monopolization is $360.
a. To maximize profits, the monopolist should produce at a level where MR = MC. From the given information, we have:
MR = 53 - 2Q
MC = 5
Setting these equal to each other, we get:
53 - 2Q = 5
48 = 2Q
Q = 24
Substituting Q = 24 into the demand curve, we get:
P = 53 - Q
P = 53 - 24
P = 29
Therefore, the profit-maximizing price-quantity combination is (Q,P) = (24,29). The monopolist's profits can be calculated as:
π = (P - AC) * Q
π = (29 - 5) * 24
π = 576
Consumer surplus can be calculated by finding the area under the demand curve above the price charged by the monopolist. Using the formula for the area of a triangle, we get:
CS = (1/2) * (53 - 29) * 24
CS = 288
b. Under perfect competition, output is produced where P = MC. From the given information, we have:
MC = 5
Setting this equal to the demand curve, we get:
P = 53 - Q
Setting P = MC, we get:
5 = 53 - Q
Q = 48
Therefore, the output level produced under perfect competition is Q = 48.
c. Consumer surplus under perfect competition can be calculated by finding the area under the demand curve above the marginal cost. Using the formula for the area of a triangle, we get:
CS = (1/2) * (53 - 5) * 48
CS = 1224
The total welfare loss due to monopolization can be calculated as the difference between the consumer surplus under perfect competition and the sum of the monopolist's profits and consumer surplus under monopoly:
DWL = CS_perfect_competition - (π + CS_monopoly)
DWL = 1224 - (576 + 288)
DWL = 360
Therefore, the value of the deadweight loss from monopolization is $360.
Learn more about deadweight loss from
https://brainly.com/question/13245375
#SPJ11
UNIT 5 ASSIGNMENT Please complete this assignment using MS Word, typing your first and last name on the first page, in the upper right corner of the page. Once your assignment is complete, upload your MS Word doc to Brightspace: Assignments Folder. QUESTION I Calculate the break-even point, in number of unit sold, for the following manufacturing company, ABC Inc using this income statement data: Sales Revenue $540,000 $180 price per unit, 3000 units sold $63 variable cost per unit Variable Costs 189,000 Contribution Margin 351,000 Fixed Costs 130,000 Profit 221,000
ABC Inc needs to sell approximately 1,111 units to break-even. Since they are currently selling 3,000 units, they are making a profit of $221,000.
First, let's calculate the contribution margin per unit:
Contribution margin per unit = Sales price per unit - Variable cost per unit
Contribution margin per unit = $180 - $63
Contribution margin per unit = $117
Next, we can use the contribution margin per unit to calculate the break-even point in units:
Break-even point (in units) = Fixed costs / Contribution margin per unit
Break-even point (in units) = $130,000 / $117
Break-even point (in units) = 1,111.11
Therefore, ABC Inc needs to sell approximately 1,111 units to break-even. Since they are currently selling 3,000 units, they are making a profit of $221,000.
Learn more about break-even. here:
https://brainly.com/question/31134552
#SPJ11
You have been asked to help a British client who is scheduled to pay EUR4,500,000 in 91 days from today. Assume that your client can borrow and lend pounds at 6% p.a. The interest rate is for a 365-day year. A. Describe the nature of your client's transaction exchange risk. 8 pts B. What is the option cost for a 91-day maturity and a strike price of GBP0.85/EUR to hedge the transaction? The option premiums are GBP0.0037/EUR for calls and GBP0.0125/EUR for puts. C. What is the maximum pound cost your client will experience in 91 days? D. Determine the value of the spot rate (GBP/EUR) for settlement in 91 days that makes your client indifferent ex post to having done the option transaction or a forward hedge if the forward rate for delivery in 91 days is GBP0.84/EUR. (2 points
A. The nature of your client's transaction exchange risk is the potential volatility and uncertainty in the exchange rate between the British pound (GBP) and the Euro (EUR) over the 91-day period. The client is exposed to the risk that the GBP/EUR exchange rate may change unfavorably, causing the amount in pounds required to fulfill the payment to increase.
B. To hedge the transaction using options, your client can purchase put options with a strike price of GBP0.85/EUR. The option cost for a 91-day maturity is GBP0.0125/EUR for puts.
C. The maximum pound cost your client will experience in 91 days depends on the actual exchange rate at that time. If the GBP depreciates against the EUR, the client will need to pay a higher amount in pounds to fulfill the EUR4,500,000 payment.
D. To determine the value of the spot rate (GBP/EUR) that makes your client indifferent between the option transaction and a forward hedge, you need to compare the payoffs of the two strategies.
For the option transaction:
- If the spot rate is below GBP0.85/EUR, the client exercises the put option and buys EUR at the strike price of GBP0.85/EUR.
- If the spot rate is above GBP0.85/EUR, the client lets the put option expire and buys EUR at the prevailing spot rate.
For the forward hedge:
- The client enters into a forward contract at a rate of GBP0.84/EUR, guaranteeing the exchange rate for the future transaction.
The client will be indifferent if the expected payoff from both strategies is the same. You would need to calculate the expected payoff for each strategy based on the probability distribution of the spot rate at the end of 91 days and compare them to determine the spot rate that makes the client indifferent. Without the probability distribution, it's not possible to provide an exact value in this case.
Learn more about risk here:
brainly.com/question/13905761
#SPJ11
Financial Statements Creation and Analysis • Due by the end of Week 6 at 11:59 pm, ET. Once you have completed and checked your work with a trial balance from the previous weeks, your employer has asked you to create Financial Statements. Be sure to do the income statement, retained earnings statement, and balance sheet for the company. Make sure you do each Financial Statement in good form, including the appropriate Title Information for each statement. Using the information from your classification, you now have figured out which accounts you will need. Using the information listed below, put the transactions in pro forma by doing the required journal entries, posting, and checking your work with a trial balance using the Journalization Excel template. Date Transaction July 1 Owner invested $100,000 cash into the business. July 2 Purchased equipment on account for $10,000 plus $100 installation. It has a life of 4 years with zero residual value. July 5 Purchased 20 coats at $50 each terms 2/10, n/30. July 9 Paid $200 for the shipping of the coats on July 5th. July 11 Purchased another 10 coats at $60 each term 2/10, n/30. Paid the rent of $2000. July 15 July 15 Sold 2 coats to Argus at $500 each, terms 2/10, n/30. At this point remember to do the COGS entry without the dollar value (LIFO). You will compute that amount in the next step of the project. July 16 Sold 4 coats to James at $500 each, terms 2/10, n/30. You will compute that amount in the next step of the project. July 22 Sold 7 coats to Bob at $500 each, terms 2/10, n/30. You will compute that amount in the next step of the project. July 24 Bob returned 1 coat that was damaged and we gave hin credit on his account. Could not be restocked. July 26 Bob paid his bill within the discount period. July 31 Paid electric bill $100. date week 7 15-Jul COGS 16-Jul A/R Sales 16-Jul COGS 22-Jul A/R Sales 22-Jul COGS 24-Jul Sales Returns A/R 26-Jul Cash Sales Discount Accounts Payable 31-Jul Utility Expense Cash 31-Jul Cash Common Stock 31-Jul Capital Cash Merchandise Inventory Merchandise Inventory Merchandise Inventory PR DR $ $ 2,000 $ $ 3,500 $ $ 500 $ 2,940 $ 60 $ 100 $ 75,000 $ 75,000 CR $ $ 2,000 $ $ 3,500 $ 500 3,000 100 $ 75,000 $ 75,000 $ $ $
To create the financial statements, we need to analyze the transactions and prepare the journal entries. Based on the given information, here are the journal entries for the transactions:
July 1:
Cash (Owner's Investment) 100,000
Common Stock 100,000
July 2:
Equipment 10,100
Accounts Payable 10,100
July 5:
Inventory 1,000
Accounts Payable 1,000
July 9:
Accounts Payable 200
Cash 200
July 11:
Inventory 600
Accounts Payable 600
July 15:
Accounts Receivable 1,000
Sales 1,000
July 16:
Accounts Receivable 2,000
Sales 2,000
July 22:
Accounts Receivable 3,500
Sales 3,500
July 24:
Sales Returns and Allowances 500
Accounts Receivable 500
July 26:
Cash 3,000
Accounts Receivable 3,000
July 31:
Utility Expense 100
Cash 100
Once the journal entries are prepared and posted, we can create the financial statements. Here are the financial statements required:
Income Statement:
Title: Income Statement for [Month/Year]
Include Sales, COGS, and other relevant income and expense accounts to calculate Net Income.
Retained Earnings Statement:
Title: Retained Earnings Statement for [Month/Year]
Include beginning retained earnings, net income from the income statement, dividends (if any), and calculate ending retained earnings.
Balance Sheet:
Title: Balance Sheet as of [Date]
Include assets (Cash, Equipment, Merchandise Inventory), liabilities (Accounts Payable), and equity (Common Stock, Retained Earnings).
To complete the financial statements, you need to calculate the Cost of Goods Sold (COGS) using the LIFO method based on the inventory and sales data provided.
Learn more about financial here:
https://brainly.com/question/28319639
#SPJ11
Compute and critically evaluate the following situations.
(a) Ruby places $600 in a savings account paying 6% interest compounded annually. She wants to know how much money will be in the account at the end of 5 year.
(b) An investor wishes to find the present value of $1,800 that will be received 6 years from now. The investor opportunity cost is 8%.
(c) Forever Insurance Company has offered to pay you or your heir $100 per year at the end of each year forever. If the correct discount rate for such a cash flow is 13%, what is the amount that you would be willing to pay Forever Insurance for this set of perpetuity? If the discount rate rose to 22%, what happen to the value of this perpetuity?
(d) Interest rate futures contract is highly related to bonds. Movements in interest rate also will influence the availability of bond futures. Critically justify your answer.
(e) Currency futures contract is not only related to multinational companies (MNCs) but domestic companies also somehow will involve in this transaction. Critically evaluate this statement.
a. The future value of Ruby's account after 5 years is approximately $759.46.
b. The present value of $1,800 received 6 years from now is approximately $1,067.15.
c. The present value of the perpetuity would be approximately $454.55.
d. Investors use these contracts to manage interest rate risk and to take advantage of anticipated interest rate changes.
e. Currency futures contracts are not exclusively limited to multinational companies (MNCs) but also involve domestic companies.
(a) The amount of money in Ruby's savings account after 5 years can be computed using the formula for compound interest: A = P(1 + r/n)^(nt), where A is the future value, P is the principal amount, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years. In this case, P = $600, r = 6%, n = 1 (compounded annually), and t = 5. Plugging in these values, we find that the future value of Ruby's account after 5 years is approximately $759.46.
(b) To find the present value of $1,800 received 6 years from now, we use the formula for present value: PV = FV / (1 + r)^t, where PV is the present value, FV is the future value, r is the discount rate, and t is the number of years. In this case, FV = $1,800, r = 8%, and t = 6. Plugging in these values, we find that the present value of $1,800 received 6 years from now is approximately $1,067.15.
(c) The present value of a perpetuity can be calculated using the formula PV = C / r, where PV is the present value, C is the cash flow per period, and r is the discount rate. In this case, C = $100 and r = 13%. Plugging in these values, we find that the present value of this perpetuity is approximately $769.23. If the discount rate rises to 22%, the value of the perpetuity would decrease. Plugging in the new discount rate, we find that the present value of the perpetuity would be approximately $454.55.
(d) Interest rate futures contracts are highly related to bonds because they are financial instruments used to hedge or speculate on future interest rate movements. As interest rates change, the value of existing bonds fluctuates, and this, in turn, affects the value of interest rate futures contracts. Investors use these contracts to manage interest rate risk and to take advantage of anticipated interest rate changes.
(e) Currency futures contracts are not exclusively limited to multinational companies (MNCs) but also involve domestic companies. While MNCs often use currency futures to hedge against exchange rate fluctuations, domestic companies may engage in currency futures for various reasons, including international trade, import/export activities, or even speculation. Currency futures provide a means for companies to manage currency risk and secure future exchange rates for their transactions, regardless of their size or global presence.
Learn more about perpetuity here: brainly.com/question/28205403
#SPJ11
Which of the following is not a post deployment administration? Answer a Backup and recovery management b Site preparation c Storage management d Security administration
The correct answer is b) Site preparation. Site preparation is not a post-deployment administration task but rather a pre-deployment activity that involves preparing the physical location or environment where the system or infrastructure will be installed.
The other options (a, c, d) are all related to post-deployment administration tasks.
a) Backup and recovery management: Involves managing and ensuring the backup of data and systems, as well as implementing procedures for recovery in case of data loss or system failure.
c) Storage management: Involves managing the storage infrastructure, including capacity planning, data organization, and optimizing storage resources.
d) Security administration: Involves managing and enforcing security measures, such as user access control, data encryption, and security audits, to protect the system and data from unauthorized access or breaches.
To know more about Site preparation, click here: brainly.com/question/31803731
#SPJ11
Today's price of stock X amounts to €60. The price in a year from now is predicted to be either €90 or €30. The risk free interest rate is 20%.
a) To which type of option does a stock option belong that al- lows you to buy the underlying asset at a strike price of € 50 at maturity?
b) Explain under which conditions such an option will not be ex- ercised.
c) Set up a table that shows the state-contingent payoffs for the stock and for the option.
d) Use the state contingent payoffs to set up two equations that allow you to derive the Levered Hedging Portfolio for the op- tion. Derive the amount of stocks and credit needed for the LHP.
a) The stock option described, which allows you to buy the underlying asset at a strike price of €50 at maturity, belongs to the type of option known as a call option.
b) A call option may not be exercised under the following conditions:
If the price of the underlying asset (stock X) at maturity is below the strike price of €50 (in this case, €30), as there would be no financial benefit to exercising the option. It would be more advantageous to purchase the stock directly from the market at a lower price.
If the investor believes that the price of the underlying asset will decline further in the future, it may be more profitable to avoid exercising the option and avoid the potential loss.
c) State-contingent payoffs table:
State of the Stock | Stock Price | Option Payoff
€30 (Low price) | €30 | €0 (No payoff)
€90 (High price) | €90 | €40 (€90 - €50)
d) To derive the Levered Hedging Portfolio (LHP) for the option, we need to set up two equations using the state-contingent payoffs:
Equation 1: LHP = Number of Stocks x Stock Price + Credit
Equation 2: Option Payoff = Max(Stock Price - Strike Price, 0)
Using the state-contingent payoffs, we can substitute the values into the equations:
For the low price state (€30):
0 = Number of Stocks x €30 + Credit
For the high price state (€90):
€40 = Number of Stocks x €90 + Credit
By solving these equations simultaneously, we can find the values of Number of Stocks and Credit needed for the LHP.
To know more about stock , visit;
https://brainly.com/question/26128641
#SPJ11
Which of the following person(s) is/are considered 'dependent' in the context of Youth allowance? You can select more than one answer. A. Anna is 23 years old, with no kids and has never worked before. B. Mary is 18 years old, orphan and has worked before. C. Peter is 18 years old, single, with no kids, has never worked before and does not live with his parents. D. Paul is 21 years old, has a child and has never worked before; he lives with his parents. A - Which of the following is NOT an objective for having a surplus? A. Build a buffer for future unexpected expenses B. Buy durable goods C. Increase liabilities D. Have an income when retired
In the context of Youth Allowance, the following person(s) are considered dependent:Anna is 23 years old, with no kids and has never worked before.Peter is 18 years old, single, with no kids, has never worked before and does not live with his parents.Paul is 21 years old, has a child and has never worked before; he lives with his. options A, C, and D are considered 'dependent' in the context of Youth Allowance.
Mary is not considered 'dependent' because she has worked before and is therefore not reliant on the allowance.Options A, B, and D are some of the objectives of having a surplus. A surplus is when income exceeds expenses, resulting in extra cash on hand. It is important to have a surplus for several reasons, including:Build a buffer for future unexpected expenses: Having a surplus can provide a cushion for unforeseen expenses, such as medical bills or car repairs. By having extra cash on hand, individuals and households can avoid going into debt or using credit cards with high-interest rates.
Buy durable goods: A surplus can be used to purchase durable goods, such as a new appliance or a car. By paying for these items in cash, individuals can avoid taking on high-interest debt.Increase liabilities:
A surplus can be used to pay down existing debt, such as credit card balances or student loans. By reducing debt, individuals can improve their credit score and reduce their overall financial burden.Have an income when retired: By saving a surplus, individuals can invest in retirement accounts, such as an IRA or 401(k). This can provide a source of income in retirement and ensure financial stability during this period.
The correct option is A,C,D
For more question Youth Allowance
https://brainly.com/question/32893177
#SPJ8
Description: The purpose of this quiz is to
help you review and think more about the types of integration and
the purpose and value of integration. You should read through the
chapter before beginning
This quiz serves as a valuable tool to aid in your revision and deeper understanding of integration, specifically the different types of integration and their significance.
It is strongly recommended that you thoroughly read the chapter related to integration before embarking on the quiz. By doing so, you will be well-prepared to tackle the quiz questions and further solidify your knowledge.
Engaging with this quiz allows you to actively test your comprehension and critically think about the purpose and value of integration. It presents an opportunity to apply your understanding to practical scenarios and assess your ability to recognize the appropriate type of integration required in each situation.
Moreover, this quiz encourages reflection on the broader implications of integration and its role in achieving organizational goals, enhancing operational efficiency, and promoting synergy among different departments or systems.
By dedicating your time and attention to this quiz, you can enhance your understanding of integration concepts and develop a comprehensive perspective on its importance in various contexts. Ultimately, this will strengthen your ability to effectively analyze and implement integration strategies in real-world scenarios.
To know more about Quiz related question visit:
https://brainly.com/question/16923403
#SPJ11
Explain Five techniques of obtaining audit evidence.
Explain the threats to auditors independence.
Techniques of obtaining audit evidence include inspection, observation, inquiry, recalculation. Threats to an auditor's independence include Self-interest threats, Familiarity threats, Bias threats, Advocacy threats and Intimidation threats.
Techniques of obtaining audit evidence:
Below are some techniques to obtain audit evidence:
Inspection: Inspection of documents and records provides documentary evidence of a transaction's occurrence and the degree of accuracy of accounts. Inspection of records and documents is a method of obtaining evidence, such as bank statements, minutes of company meetings, contracts, invoices, and shipping receipts.
Observation: Observing the activities of workers or procedures is another method of obtaining evidence. This might include, for example, watching workers as they complete manufacturing procedures or counting inventory.PPCs (Physical counts or observations): These tests involve verifying that the company's assets and records agree with the inventory's actual physical count.
Inquiry: Making inquiries is a technique that entails obtaining information from company workers or outsiders. This may include sending written inquiries, asking inquiries face to face, or using phone or electronic communication.
Recalculation: This is a process in which the auditor checks the numerical accuracy of a transaction by re-performing calculations independently.
Threats to auditors independence:
Threats to an auditor's independence include:
Self-interest threats: These threats arise from an auditor's financial or other interests with respect to a company or its management. A direct financial interest or material indirect financial interest in a company may cause an auditor to be biased or to have a conflict of interest with the audit's main goal.
Familiarity threats: Threats to an auditor's independence can arise when a long-term relationship between the auditor and the client or its employees or owners exists. When the auditor becomes overly friendly with the client, a familiarity threat may arise, resulting in the auditor becoming sympathetic to the client's viewpoint that conflicts with the auditor's professional judgment.
Bias threats: This type of threat arises when the auditor has a perception about the client or the subject matter that can influence their judgment or impair their objectivity.
Advocacy threats: Advocacy threats arise when the auditor's role conflicts with the auditor's professional responsibilities. For example, an auditor should not take on the role of advocate for the client and defend their position if it conflicts with the audit's goals and objectives.
Intimidation threats: This occurs when a client, its employees, or third parties engage in threats or intimidation against the auditor to influence the auditor's opinion or judgment.
Learn more about audit evidence at https://brainly.com/question/33111254
#SPJ11
Problem 6 (5 pts) Hamburger and pizza are substitutes in production, and the number of burger buyers increases, and beef is used to produce hamburgers. What will happen in the hamburger's market if the price of pizza declines, the number of buyers increases, and the price of beef decreases?
The combined effects of a declining pizza price, an increasing number of buyers, and a decreasing price of beef can result in a complex interaction in the hamburger market. While the declining pizza price might lead to a decrease in demand for hamburgers, an increasing number of buyers and a decreasing price of beef could counterbalance this effect by stimulating demand and potentially reducing the price of hamburgers.
Hamburger and pizza are substitutes in production, changes in the price and number of buyers for pizza, as well as the price of beef, will have effects on the hamburger market. Let's analyze the potential outcomes based on the provided information:
1. Price of Pizza Declines:
When the price of pizza declines, it becomes relatively cheaper compared to hamburgers. As a result, some consumers may switch from hamburgers to pizza, considering it as a more affordable substitute. This could lead to a decrease in the demand for hamburgers.
2. Number of Buyers Increases:
If the number of buyers for hamburgers increases, there will be a higher demand for hamburgers in the market. This increase in demand can potentially offset the negative impact of consumers switching to pizza due to its lower price. The net effect on the hamburger market will depend on the magnitude of the increase in buyers.
3. Price of Beef Decreases:
A decrease in the price of beef, which is used to produce hamburgers, will lower the production cost for hamburger suppliers. This could lead to a decrease in the price of hamburgers in the market, assuming other factors remain constant. A lower price can stimulate demand and potentially attract more buyers to the hamburger market.
To know more about substitutes click on below link :
https://brainly.com/question/32970815#
#SPJ11
A company that manufactures personal care products decides to research the effects of adding aloe vera extract to their current moisturizing skin lotion product. They monitor the skin quality of 90 randomly selected customers using the standard moisturizing lotion and 90 randomly selected customers using the new aloe vera lotion. What is the error in the following statement about the control group of this study? The control group is the group of individuals who do not use either skin lotion. O The control group is the group of individuals using the standard skin lotion. O The control group is the group of individuals using the aloe vera skin lotion. O The study was not a randomized comparative experiment, so there was no control group. O The control group is the group of individuals using both varieties of skin lotion. O There was no error made.
The error in the statement about the control group of this study is that it states "The control group is the group of individuals who do not use either skin lotion."
The control group in a study is typically a group that does not receive the treatment being investigated. In this case, the control group would consist of individuals using the standard moisturizing skin lotion, as stated in the statement "The control group is the group of individuals using the standard skin lotion."
However, the error in the statement is that it incorrectly defines the control group as the group of individuals who do not use either skin lotion. This is not accurate, as the control group in this study would consist of individuals using the standard lotion, while the other group would be the experimental group using the aloe vera lotion.
Learn more about experimental design: brainly.com/question/28145500
#SPJ11
Go to the Bank of Canada’s website. Using information from the site related to Monetary Policy answer the following in your own words:
Target for the overnight rate right now Is 1.5.
1. What do you think the Bank of Canada will do about the Target for the Overnight Rate on the next interest rate announcement date? Why do you think they will take this course of action and how will it affect the economy? Use the information about inflation given on this website, and consider the Bank of Canada’s Inflation Control Target and its economic forecast in the Monetary Policy Report. Please in your own words and read the questions carefully
The Bank of Canada adjusts this rate as part of its monetary policy to influence the overall level of borrowing costs and to maintain price stability, with a primary focus on keeping inflation within a target range.
It is crucial to take into account a number of variables, including the status of the economy, inflationary pressures, and the central bank's economic outlook, in order to determine what the Bank of Canada may do in the future. I am unable to make an accurate forecast regarding the future course of action regarding the overnight rate or its impact on the economy without access to the most recent information available on the Bank of Canada's website.
Learn more about Bank of Canada here:
https://brainly.com/question/33255534
#SPJ11
This is my project. I want cost estimation template filled according to that in the below template.
The selected project is to support a half-and-half vehicle that would run on solar energy as well as electric power for charging. In this business, a used vehicle would be purchased along with solar and battery powered chargers. The battery unit would be mounted in the vehicle which would have a charging attachment so it can be charged very well. The solar-based charger would be mounted on the roof of the vehicle. The task would begin in the main seven-day stretch of August 2022 and be completed in 8 months or less. The battery would be charged with energy based on solar radiation.
For this assignment, you will fill in each of the sections in the table below. For each of the cells you will provide:
1) a brief definition of the type of cost (must reference and reflect textbook),
2) identify a specific resource cost within your project that fits this type of cost and then,
3) explain why this cost specifically fits the definition.
EXAMPLE
Fixed:
1. Fixed costs are "costs that remain the same regardless of the size or volume of work" (Kloppenborg 2019, p. 331)
2. Rental of paint sprayer
3. The paint sprayer for home remodel project will be a fixed cost of "x" amount per time rented "y". The price for the rental will not fluctuate if it is used more or less during the rental period.
The given project is about supporting a vehicle that can run on both solar and electric power for charging purposes. In this project, a used vehicle will be purchased along with a solar-based charger and battery-powered chargers. The task will begin in August 2022 and be completed in eight months or less. The battery will be charged with energy based on solar radiation. The following table describes different types of costs and a specific resource cost that fits this type of cost:
Type of Cost, Brief Definition of the Type of Cost
Specific Resource Cost, Why this Cost Specifically Fits the Definition
Direct Costs
Direct costs are "costs that can be traced directly to the project and are incurred for the benefit of the project"
Cost of a used vehicle
All the costs incurred in the purchase of the used vehicle will directly benefit the project.
Indirect Costs
According to the book Contemporary Project Management by Timothy Kloppenborg, T., Anantatmula, V., & Wells, K. (2018). Contemporary Project Management (4th ed.). Cengage Learning. p. 133.the definition of indirect costs is:
Indirect costs are "costs that are not directly traceable to the project"
Cost of renting a storage unit
Renting a storage unit is an indirect cost because it is not directly related to the project but is still necessary to store the vehicle during the project period.
Variable Costs
Variable costs are "costs that vary directly with the volume of work" (Kloppenborg 2019, p. 331)
Cost of battery-powered chargers
The cost of the battery-powered chargers is variable because it will change as the volume of work increases or decreases.
Fixed Costs
Fixed costs are "costs that remain the same regardless of the size or volume of work" (Kloppenborg 2019, p. 331)
Cost of solar-based charger
The cost of the solar-based charger is fixed because it will not change regardless of the size or volume of work over the project period.
Total Costs
Total costs are the sum of direct and indirect costs of the project.
Indirect costs https://brainly.com/question/30614531
#SPJ11
Pick a year between 1930 and 2018 that had an economic shock ongoing (and that would be most years) and has not been covered by another student, then:
1. Build a table and show the rate of unemployment, output (GDP growth rate), and inflation rate in the economy in your chosen year and in the prior and successive years in table format. Note that all the data you need for this is located at the link below.
2.Identify the specific shocks (supply, demand, positive, negative) that may have been affecting your chosen year. This may require outside research – if so identify your references.
3. Based on (1) and (2) above, what phase of the business cycle (peak, recession, trough, expansion) do you believe your chosen year was in? Explain your reasoning.
You can find the data at Unemployment (Links to an external site.)Rate by Year Since 1929 Compared to Inflation and GDP. (Links to an external site.)
I have randomly selected the year 2008 as the chosen year with an ongoing economic shock. Here is the requested table showing the rate of unemployment, output (GDP growth rate), and inflation rate for the chosen year, as well as the prior and successive years:
Year Unemployment Rate (%) GDP Growth Rate (%) Inflation Rate (%)
2007 4.6 1.9 2.9
2008 5.8 -0.1 3.8
2009 9.3 -2.8 0.1
In 2008, the global economy was hit by a severe financial crisis known as the Great Recession, which originated in the United States and had significant ripple effects worldwide. The specific shock that affected this year was a negative demand shock, resulting from the collapse of the housing market and the subsequent financial turmoil.
The bursting of the housing bubble led to a sharp decline in consumer spending, business investments, and overall economic activity. The financial sector faced significant distress, with numerous banks and financial institutions experiencing failures or requiring bailouts.
The repercussions of the financial crisis were felt across various sectors and countries, leading to a widespread economic downturn. Unemployment rates rose significantly as companies reduced their workforce to cut costs.
The negative GDP growth rate in 2008 indicates a contraction in economic output, reflecting the severity of the recession. Inflation remained relatively high due to factors such as rising energy and commodity prices, although it moderated somewhat compared to the prior year.
Based on the provided data and the identified negative demand shock, it can be concluded that the chosen year, 2008, was in a recession phase of the business cycle. The economy experienced a contraction in output and increased unemployment rates, which are typical characteristics of a recessionary period.
Learn more about inflation rate here
https://brainly.com/question/15044583
#SPJ4
A company purchased an equipment that currently has a book value of $130,000. If the equipment is sold at $150,000, what is the after tax proceeds from the sale of the equipment if the tax rate is 25% ?
a. $142,100
b. $145.000
c. $147,900
d. $137,750
e. $135,000
By deducting taxes from the sale price, it is possible to determine the equipment sale's after-tax earnings.
The discrepancy between the sale price and the book value is the taxable gain. The taxable gain in this scenario is $150,000 less $130,000, or $20,000.
Learn more about deducting taxes here:
https://brainly.com/question/33570627
#SPJ11
Question One
The trial balance of The White Ribbon failed to agree, and the difference was posted to a suspense account. The Income Statement then showed a net loss $15,800. A subsequent audit revealed the following accounting errors
a) The loan interest of $25.000 was paid by cheque and correctly posted in the cashbook. but was debited to the loan account
b) An invoice for credit sales of $70,000 was posted in the sales ledger but was not posted in the sales account
c) Office expense of $30,000 paid by cheque and correctly posted in the cashbook, was debited to the Insurance account
d) The Closing Stock valued at $60,500 was taken as $44,500 e) Cash donations of $22,500 was posted to the books as $55,200
f) The Opening Stock valued at $35,000 was taken as $55,000
g) Building repairs paid for $40,000 by cheque was correctly recorded in the cashbook but was debited to the building account
Required
1. Write up the General Journal to note the corrections required for the above errors Narratives are NOT required 2. Write up the Suspense Account 3. Prepare the Statement of Adjusted Net Income 4. Identify and briefly explain the errors incurred at (c.), (e), and (g) above
General Journal Corrections:
a) Debit: Loan account $25,000, Credit: Cash account $25,000
b) Debit: Sales account $70,000, Credit: Sales ledger $70,000
c) Debit: Insurance account $30,000, Credit: Office expense $30,000
d) No correction required in the General Journal as it does not affect any accounts directly.
e) Debit: Cash account $22,500, Credit: Cash donations $22,500
f) No correction required in the General Journal as it does not affect any accounts directly.
g) Debit: Building account $40,000, Credit: Cash account $40,000
Suspense Account:
Debit: Suspense account $54,800 (total of all debits)
Credit: Suspense account $40,000 (total of all credits)
Statement of Adjusted Net Income:
Net Loss (as per Income Statement): $15,800
Add: Correction for (a) Loan interest debited to the loan account: $25,000
Add: Correction for (c) Office expense incorrectly debited to the Insurance account: $30,000
Deduct: Correction for (e) Cash donations posted as $55,200 instead of $22,500: $32,700
Deduct: Correction for (g) Building repairs debited to the building account: $40,000
Adjusted Net Income: $33,700 (Net Loss of $15,800 + Corrections of $49,500)
Explanation of Errors:
(c) The office expense of $30,000 was paid by cheque and correctly recorded in the cashbook, but it was debited to the Insurance account. This error resulted in an overstatement of insurance expenses and understatement of office expenses.
(e) Cash donations of $22,500 were posted to the books as $55,200. This error caused an overstatement of cash donations and misrepresentation of the actual amount received.
(g) Building repairs paid for $40,000 by cheque were correctly recorded in the cashbook but were debited to the building account. This error resulted in an understatement of building repairs expense and an overstatement of the building's value
To know more about Income Statement ,visit:
https://brainly.com/question/14890247
#SPJ11
Crane Corporation began operations on December 1, 2019. The only inventory transaction in 2019 was the purchase of inventory on December 10, 2019, at a cost of $ 21 per unit. None of this inventory was sold in 2019. Relevant information is as follows. 110 Ending inventory units December 31, 2019 December 31, 2020, by purchase date December 2, 2020 July 20, 2020 110 50 160 During the year 2020, the following purchases and sales were made. Purchases 310 units at $25 310 units at 26 Sales April 10 August 20 November 18 December 12 March 15 July 20 September 4 December 2 210 310 29 160 210 units at 110 units at 32 210 The company uses the periodic inventory method. (a1) Your answer is incorrect. Calculate average-cost per unit. (Round answer to 2 decimal places, e.e. 2.76.) Average-cost $
Crane Corporation began operations on December 1, 2019. The average cost per unit is $25.98.
To calculate the average cost per unit, we need to consider the total cost of inventory available and the total number of units.
In this case, we have the following information:
Beginning inventory: None (as the inventory purchased in December 2019 was not sold in 2019)
Purchases:
310 units at $25 per unit
310 units at $26 per unit
To calculate the total cost of inventory available, we multiply the number of units by their respective costs:
Total cost of inventory available = (310 units * $25 per unit) + (310 units * $26 per unit)
= $7,750 + $8,060
= $15,810
we need to calculate the total number of units available, which is the sum of the beginning inventory units and the purchased units:
Total units available = 110 (ending inventory on December 31, 2019) + 310 (purchased units) + 310 (purchased units)
= 730 units
Finally, we can calculate the average cost per unit:
Average cost per unit = Total cost of inventory available / Total units available
= $15,810 / 730 units
≈ $25.98 (rounded to 2 decimal places)
Therefore, the average cost per unit is approximately $25.98.
To know more about average cost, refer here:
https://brainly.com/question/14415150#
#SPJ11
Which of the following describe(s) a mutual fund whose
return/risk combination plots below the security market line?
a.
The fund is not generating enough return premium per unit of
total risk.
The correct option that describes a mutual fund whose return/risk combination plots below the security market line is:
(a). The fund is not generating enough return premium per unit of total risk.
The security market line (SML) represents the relationship between the expected return and systematic risk of a security or portfolio. It shows the expected return that investors should receive for taking on a certain level of risk, based on the capital asset pricing model (CAPM).
If a mutual fund's return/risk combination plots below the SML, it means that the fund is not generating enough return (or excess return) compared to the level of risk it is taking. In other words, the fund's risk-adjusted return is lower than what is expected based on the market's risk-return relationship.
Investors typically seek investments that provide a higher return for a given level of risk, or lower risk for a given level of return. When a mutual fund falls below the SML, it indicates that it is not meeting these expectations and is not efficiently compensating investors for the risk they are taking.
Therefore, option "a" correctly describes a mutual fund that plots below the security market line, indicating that it is not generating enough return premium per unit of total risk.
To know more about mutual visit:
https://brainly.com/question/4521829
#SPJ11
FILL THE BLANK. Question 4 One of the main areas in the brain that is still developing through adolescence and emerging adulthood is the ____________ prefrontal cortext hippocampus amygdala spinal column.
One of the main areas in the brain that continues to undergo significant development during adolescence and emerging adulthood is the prefrontal cortex.
This region, located at the front of the brain, is responsible for higher-order cognitive functions such as decision-making, impulse control, and social behavior. During this developmental stage, the prefrontal cortex is undergoing structural and functional changes, including increased connectivity and refinement of neural pathways.
These changes contribute to the maturation of executive functions, emotional regulation, and the ability to plan and think abstractly. The ongoing development of the prefrontal cortex during this period has important implications for cognitive and emotional development, as well as for shaping behaviors and decision-making processes during adolescence and beyond.
To know more about adolescence related question visit:
https://brainly.com/question/10871184
#SPJ11
On January 1, 2021, Fowl Products issued $72 million of 6%, 10-year convertible bonds at a net price of $72.8 million. Fowl recently issued similar, but nonconvertible, bonds at 99 (that is, 99% of face amount). The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 30 shares of Fowl’s no par common stock. Fowl records interest by the straight-line method. On June 1, 2023, Fowl notified bondholders of its intent to call the bonds at face value plus a 1% call premium on July 1, 2023. By June 30 all bondholders had chosen to convert their bonds into shares as of the interest payment date. On June 30, Fowl paid the semiannual interest and issued the requisite number of shares for the bonds being converted. Required: 1. Prepare the journal entry for the issuance of the bonds by Fowl. 2. Prepare the journal entry for the June 30, 2021, interest payment. 3. Prepare the journal entries for the June 30, 2023, interest payment by Fowl and the conversion of the bonds (book value method).
1. Journal entry for the issuance of the bonds by Fowl:
Debit: Cash ($72.8 million)
Credit: Bonds Payable ($72 million)
Credit: Discount on Bonds Payable ($0.8 million)
2. Journal entry for the June 30, 2021, interest payment:
Debit: Interest Expense ($2.16 million)
Credit: Cash ($2.16 million)
3. Journal entries for the June 30, 2023, interest payment by Fowl and the conversion of the bonds (book value method):
a. Interest payment:
Debit: Interest Expense ($2.16 million)
Credit: Cash ($2.16 million)
b. Conversion:
Debit: Bonds Payable ($72 million)
Debit: Premium on Bonds Payable ($0.72 million)
Credit: Common Stock (number of shares * par value)
Credit: Additional Paid-in Capital (excess of conversion value over par value)
The journal entry for the issuance of the bonds involves recording the receipt of cash ($72.8 million), the issuance of bonds payable ($72 million), and the discount on bonds payable ($0.8 million) resulting from the difference between the cash proceeds and the face value of the bonds.
The journal entry for the June 30, 2021, interest payment records the recognition of interest expense ($2.16 million) and the corresponding cash payment ($2.16 million) for the semiannual interest payment.
The June 30, 2023, interest payment and conversion of the bonds are separate transactions. For the interest payment, the journal entry reflects the recognition of interest expense ($2.16 million) and the cash payment ($2.16 million). For the bond conversion, the journal entry involves debiting the bonds payable ($72 million) and the premium on bonds payable ($0.72 million) and crediting the common stock (based on the conversion ratio) and additional paid-in capital (reflecting the difference between the conversion value and the par value of the common stock).
To learn more about bonds visit;
https://brainly.com/question/31388849
#SPJ11
A cellphone store specializes in a popular and fancy cellphone. Assume that the store can only order cameras from the manufacturer at the beginning of the month and these cellphones become obsolete at the end of the month. The store promises to its customers that delivery on the next day is guaranteed in case the cameras are out of stock. In fact, what the store does is to purchase the cellphone from an out-of-state retailer and have it delivered through an express service. Thus, when out of stock, the store loses the potential sale for a cellphone and pays for the shipping charge, but maintains their good reputation. The retail price of the cellphone is $220, and the special delivery charge adds another $30 to the cost. At the end of each month, there is an inventory holding cost of $50 for each cellphone in stock. Wholesale cost for the store to purchase the cellphones is $100 each. The monthly demand is discrete uniform between 17 to 20 cellphones (inclusive). That is, Pr[D = d] = for d = 17, 18, 19, 20. (a) If 18 cellphones are ordered at the beginning of a month, what are the expected overstock cost and the expected understock cost? What is the expected total cost? (b) What is optimal number of cellphones to order that minimizes the expected total cost? (c) (10 points) Suppose now that wholesaler has offered to provide 10 brand new phones for free to the store, regardless of the quantity ordered by the store. Should the store order additional phones? If yes, how many units should be ordered?
To solve this problem, we'll calculate the expected overstock cost, expected understock cost, expected total cost, and determine the optimal number of cellphones to order.
Then, we'll consider the scenario where the wholesaler offers 10 free phones and determine if the store should order additional phones.(a) Expected Overstock Cost, Expected Understock Cost, and Expected Total Cost:Given:Retail price (R) = $220Special delivery charge (S) = $30Inventory holding cost (H) = $50 per cellphoneWholesale cost (W) = $100 per cellphoneTo calculate the expected overstock cost, we need to find the probability of overstock for each possible demand value:Pr[D ≤ 18] = Pr[D = 17] + Pr[D = 18] (as demand can be 17 or 18)= +Expected Overstock Cost = Pr[D ≤ 18] × (R - W) × 18To calculate the expected understock cost, we need to find the probability of understock for each possible demand value:Pr[D ≥ 19] = Pr[D = 19] + Pr[D = 20] (as demand can be 19 or 20)= +Expected Understock Cost = Pr[D ≥ 19] × (W + S) × (19 - D)Expected Total Cost = Expected Overstock Cost + Expected Understock Cost + Inventory Holding Cost × (18 - D)(b) Optimal Number of Cellphones to Order:To find the optimal number of cellphones that minimizes the expected total cost, we need to calculate the expected total cost for different order quantities (18, 19, and 20) and choose the quantity with the lowest cost.Calculate the expected total cost for each order quantity (18, 19, and 20) using the formulas from part (a). Choose the order quantity with the lowest expected total cost as the optimal number of cellphones to order.(c) Effect of Free Phones:If the wholesaler offers 10 free phones regardless of the quantity ordered, we need to consider the cost implications of this offer.Calculate the expected total cost for different order quantities (taking into account the free phones). Compare the expected total costs with and without the free phones offer to determine if ordering additional phones is beneficial.
Learn more about cellphones here:
https://brainly.com/question/32958983
#SPJ11
