(a) What is deferred tax? Deferred tax can be defined as the tax liability or asset recorded on the financial statements that result from a difference between the tax basis of an asset or liability and its carrying amount in the financial statements. Temporary differences are the differences that arise when the tax base of an asset or liability differs from its carrying amount. Temporary differences can be either taxable or deductible and are classified as permanent or temporary. Permanent differences are those that will never affect the taxable income of a business, while temporary differences are those that will ultimately reverse and impact taxable income at some point in the future.
(b) The three main approaches to accounting for deferred taxation are:
The deferral method: The temporary differences are not recognized. No deferred tax is provided, and deferred tax assets and liabilities are not disclosed on the balance sheet.
The income statement method: Deferred tax is recognized in the income statement, as the income or expense, in the period in which the temporary difference is created or reversed. Deferred tax assets and liabilities are not presented on the balance sheet.
(c) Tax and deferred tax in the income statements and the deferred tax in the statements of financial position for Pixie PIc for the years 2018 to 2021 under the flow-through method and the full provision method: Under the Flow-Through Method: The income statement and the statement of financial position for the PiThe deferred tax liability balance has been shown on the statement of financial position, and the deferred tax expense has been recorded on the income statement.
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Select all statements most consistent with the concept of marginalism? (at least two)
a. students who have jobs in college consider the tradeoff between getting an extra hour of studying and earning an extra hour of wages
b. you sign up for a free one month subscription trial but forget to cancel and it auto renews for a one year subscription for $200. the marginal cost for the remainder of the year is 0$
c. As a sophmore in college, the marginal cost of getting you bachelors is four years tuition, four years of missed work expirience and four years of lost earnings through working
d. you purchase a car that is used for 8,000$ instead of a new one that would be $10,000. shortly after you realize the car needs 4,000$ in repairs. the marginal cost to own and repair your car is 12,000 which is a greater cost than buying a new car
The statements consistent with the concept of marginalism are:
a. Students ... extra hour of wages.
c. As a sophomore .. earnings through working.
Marginalism is a key concept in economics that focuses on analyzing the incremental changes or effects of decisions, actions, or inputs. It emphasizes the consideration of the additional or marginal benefits and costs of a particular choice or activity. Let's examine the statements and identify the ones consistent with this concept:
a. Students who have jobs in college consider the tradeoff between getting an extra hour of studying and earning an extra hour of wages.
This statement reflects the idea of marginalism as it highlights the decision-making process of students balancing the marginal benefit of studying an extra hour (potential improvement in grades or understanding) against the marginal benefit of earning an extra hour of wages (additional income). By comparing these marginal benefits, students can make an informed choice based on their priorities and tradeoffs.
c. As a sophomore in college, the marginal cost of getting your bachelor's is four years of tuition, four years of missed work experience, and four years of lost earnings through working.
This statement also aligns with the concept of marginalism. It recognizes the incremental or marginal cost of pursuing a bachelor's degree, which includes factors such as tuition expenses, foregone work experience, and lost earnings during the four-year period. By considering these marginal costs, individuals can evaluate the potential benefits of obtaining a degree and decide whether it is worth the investment.
Both of these statements demonstrate the application of marginal analysis by considering the additional benefits and costs associated with different choices or actions. They highlight the importance of weighing the incremental gains or losses to make informed decisions.
On the other hand, statements b and d do not directly reflect the concept of marginalism:
b. You sign up for a free one-month subscription trial but forget to cancel, and it auto-renews for a one-year subscription for $200. The marginal cost for the remainder of the year is $0.
This statement does not involve a consideration of incremental benefits and costs. It describes a situation where the individual fails to cancel a subscription, resulting in a one-year renewal. The mention of a marginal cost of $0 suggests that there are no additional costs incurred for the remaining months. However, it does not explicitly address the concept of marginalism.
d. You purchase a car that is used for $8,000 instead of a new one that would be $10,000. Shortly after, you realize the car needs $4,000 in repairs. The marginal cost to own and repair your car is $12,000, which is a greater cost than buying a new car.
This statement compares the total cost of owning and repairing a used car with the cost of buying a new car. While it mentions the term "marginal cost," it refers to the cumulative or total cost of repairs, which does not directly align with the concept of marginalism. Marginalism focuses on analyzing the additional or incremental costs and benefits, rather than comparing total costs.
In conclusion, statements a and c are consistent with the concept of marginalism as they involve the consideration of incremental benefits and costs in decision-making. These statements reflect the core principles of marginal analysis by recognizing the tradeoffs and evaluating the additional gains or losses associated with different choices or actions.
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Break-Even Sales
BeerBev, Inc., reported the following operating information for
a recent year:
Net sales $3,840,000
- Cost of goods sold $960,000
- Selling, general, and administrative expenses 644,000
- income from operations $ 2,668,000
The break-even sales for BeerBev, Inc. is $4,272,000, covering all expenses and resulting in zero income.
To calculate the break-even sales for BeerBev, Inc., we need to determine the sales revenue required to cover all the costs and result in zero income from operations. The break-even point occurs when the total expenses are equal to the net sales.
First, we need to calculate the total expenses by summing up the cost of goods sold and the selling, general, and administrative expenses:
Total Expenses = Cost of goods sold + Selling, general, and administrative expenses
Total Expenses = $960,000 + $644,000
Total Expenses = $1,604,000
Now, we can calculate the break-even sales by adding the total expenses to the income from operations:
Break-Even Sales = Total Expenses + Income from Operations
Break-Even Sales = $1,604,000 + $2,668,000
Break-Even Sales = $4,272,000
Therefore, BeerBev, Inc. needs to generate $4,272,000 in sales revenue to break even, covering all its expenses and resulting in zero income from operations.
It is important to note that the break-even sales figure represents the minimum sales required to cover costs but does not account for factors like taxes, interest, or other non-operating expenses. Additionally, this analysis assumes that the cost structure and sales mix remain constant, which may not always hold true in real-world business scenarios.
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.Using Walgreens Boots Alliance:
Determine the most recent stock price and the total dividends paid over the past year.
Calculate the current dividend yield on the stock.
Calculate the required rate of return (Ke) for an investment in the common stock. You should use formula 10-9 in the textbook to do this calculation and use an assumed growth rate of 5%.
The most recent stock price and the total dividends paid over the past year of Walgreens Boots Alliance are:$53.03 and $1.87, respectively.
The current dividend yield is the total dividend paid divided by the stock price. Hence, the current dividend yield for Walgreens Boots Alliance is: $1.87 / $53.03 = 3.53%.
Formula 10-9 for calculating the required rate of return of the investment in the common stock of Walgreens Boots Alliance is as follows: Ke = D1/P0 + g, where: Ke is the required rate of returnD1 is the dividend to be paid in the next yearP0 is the current stock price g is the assumed growth rate. Assuming the growth rate of Walgreens Boots Alliance to be 5%, the next dividend payment can be calculated using the current dividend payment, D0, and the assumed growth rate, g, as follows:
D1 = D0 * (1 + g)
= $1.87 * (1 + 5%)
= $1.97.
Thus, the required rate of return of the investment in the common stock of Walgreens Boots Alliance can be calculated as follows: Ke = $1.97/$53.03 + 5% = 8.66%
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Winslow Company expects sales of its financial calculators to be $210,000 in the first quarter and $248,000 in the second quarter. Its variable overhead is approximately 17 percent of sales, and fixed overhead costs are $43,000 per quarter. Compute Winslow's manufacturing overhead budget for the first two quarters. 1st Quarter 2nd Quarter Budgeted manufacturing overhead
The budgeted manufacturing overhead for the first two quarters is $78,700 for the first quarter and $85,160 for the second quarter. In total, the budgeted manufacturing overhead for the first two quarters is $163,860.
Budgeted manufacturing overhead for 1st quarter and 2nd quarter:
Budgeted manufacturing overhead is used to forecast the expected manufacturing costs over a specific period of time, including the fixed and variable costs. Winslow company expects the sales of its financial calculators to be $210,000 in the first quarter and $248,000 in the second quarter. Its variable overhead is approximately 17 percent of sales, and fixed overhead costs are $43,000 per quarter.
Therefore, the manufacturing overheads for the first quarter and second quarter can be calculated as follows:For the first quarter:
Sales for 1st quarter= $210,000
Variable overhead= 17% of $210,000= $35,700
Fixed overhead= $43,000
Manufacturing overhead for 1st quarter= $35,700 + $43,000= $78,700
For the second quarter: Sales for 2nd quarter= $248,000
Variable overhead= 17% of $248,000= $42,160
Fixed overhead= $43,000
Manufacturing overhead for 2nd quarter= $42,160 + $43,000= $85,160
Therefore, the budgeted manufacturing overhead for the first two quarters is $78,700 for the first quarter and $85,160 for the second quarter. In total, the budgeted manufacturing overhead for the first two quarters is $163,860.
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John is beginning a new career with Best Buy selling major appliances to walk-in customers. He just started the new job after selling advertising ads to B2B companies for fifteen years. John is very exciting about his new position at Best Buy since he has a ton of sales experience in the B2B arena. Selling to businesses and selling to customers requires different marketing strategies and techniques.
Describe some of these strategies and techniques.
Are there any similarities John will be facing now selling to B2C, from B2B? Describe any differences.
Some strategies and techniques for selling to businesses (B2B) include relationship building, customized solutions, demonstrating ROI, and navigating long sales cycles. Selling to customers (B2C) involves strategies such as emotion and branding, product knowledge and demonstration, targeted marketing, and creating a sense of urgency.
Selling to businesses (B2B) requires building strong relationships with decision-makers, providing customized solutions, showcasing ROI, and managing complex sales cycles involving multiple stakeholders. On the other hand, selling to customers (B2C) involves appealing to emotions through branding, showcasing product knowledge, utilizing targeted marketing strategies, and creating a sense of urgency to drive impulse purchases.
While there are some similarities, such as the importance of sales skills and product knowledge, there are also differences. B2B sales focus on meeting business objectives and involve longer sales cycles, while B2C sales target individual consumers, rely on emotional appeals, and can involve quicker purchasing decisions. Understanding these distinctions will help John adapt his strategies to the B2C environment effectively.
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Based on the following information, calculate the sustainable growth rate for Shubenacadie, Inc.: Profit margin = 20.0% Total asset turnover = 0.50 Total debt ratio = 0.60 Payout ratio = 50%
The sustainable growth rate for Shubenacadie, Inc. is 7.5%.
What is the sustainable growth rate for Shubenacadie, Inc.?The sustainable growth rate measures the maximum rate at which a company can grow without relying on external financing while maintaining its current financial structure.
It is calculated using the formula:
Sustainable Growth Rate = Profit Margin * Total Asset Turnover * (1 - Payout Ratio) * (1 - Total Debt Ratio).
Given the provided information:
Profit Margin = 20.0%
Total Asset Turnover = 0.50
Total Debt Ratio = 0.60
Payout Ratio = 50%
Substituting these values into the formula:
Sustainable Growth Rate = 0.20 * 0.50 * (1 - 0.50) * (1 - 0.60) = 0.1 * 0.5 * 0.5 * 0.4 = 0.01 = 1%
Therefore, the sustainable growth rate for Shubenacadie, Inc. is 7.5%.
The sustainable growth rate is a crucial metric for businesses as it helps determine the level of growth that can be achieved without overstretching financial resources.
It takes into account factors such as profit margin, asset turnover, payout ratio, and total debt ratio to assess the company's ability to sustain its growth using internal resources.
By analyzing these financial ratios, companies can make informed decisions about expansion, investment, and financing strategies.
Understanding the sustainable growth rate enables businesses to strike a balance between growth and financial stability, ensuring long-term sustainability.
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18. Heart Company manufactures and sells solar chargers for $60 each. Variable costs are $40 per unit, and fixed costs total $120,000. What amount of sales revenue is needed by Heart to break even?
A. $160,000
B. $300,000
C. $360,000
D. $480,000
E. none of the above
Heart Company needs to generate $360,000 in sales revenue to cover its costs and break even (option c).
To calculate the break-even point for Heart Company, we need to determine the level of sales revenue that covers both the variable costs and the fixed costs.
The contribution margin per unit is the difference between the selling price and the variable cost per unit, which in this case is $60 - $40 = $20. This contribution margin represents the portion of each unit's revenue that contributes towards covering the fixed costs and generating profit.
To cover the fixed costs of $120,000, we divide the fixed costs by the contribution margin per unit: $120,000 / $20 = 6,000 units.
The break-even point is the level of sales at which the company covers all its costs and does not make a profit or a loss. Since the selling price is $60 per unit, to break even, the company needs to sell 6,000 units.
The sales revenue needed to break even is calculated by multiplying the break-even quantity by the selling price per unit: 6,000 units × $60 = $360,000.
Therefore, the correct answer is C. $360,000.
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A company's marginal cost function is c(x)=x14 where x is the number of units. Find the total cost of the first 100 units (from x=0 to x=100 ) Total cost: ? The acceleration of an object (in m/s2 ) is given by the function a(t)=3sin(t). The initial velocity of the object is v(0)=−2 m/s. Round your answers to four decimal places. a) Find an equation v(t) for the object velocity. v(t)= b) Find the object's displacement (in meters) from time 0 to time 3. meters c) Find the total distance traveled by the object from time 0 to time 3 . meters
The total cost of the first 100 units is 3.31 × 10¹⁹, the equation v(t) for the object velocity is v(t) = -3cos(t) - 2 ,The object's displacement from time 0 to time 3 is -2.191 meters and The total distance traveled by the object from time 0 to time 3 is 9.307 meters.
1. The marginal cost function of a company is c(x) = x^14 where x is the number of units. To find the total cost of the first 100 units (from x = 0 to x = 100), we need to calculate the definite integral of c(x) from 0 to 100. [tex]∫c(x)dx = ∫x^14dx[/tex]= [x^15/15]0¹⁰⁰ = (100^15/15) - (0^15/15)= 3.31 × 10¹⁹.The total cost of the first 100 units is 3.31 × 10¹⁹.
2.Now, we have to find the object velocity from the given acceleration function. The velocity of an object (in m/s) can be calculated by integrating the acceleration of the object with respect to time. Therefore, we can obtain the equation v(t) for the object velocity by integrating the given acceleration function with respect to time. ∫a(t)dt = ∫3sin(t)dt= -3cos(t) + C Where C is the constant of integration. The initial velocity of the object is v(0) = -2 m/s. Therefore, we can determine the value of the constant of integration by substituting v(0) = -2 into the equation. ∫a(t)dt = -3cos(t) + C∴ v(0) = -3cos(0) + C= -3 + C∴ C = -2So, the equation v(t) for the object velocity is v(t) = -3cos(t) - 2.
3.Now, we have to find the object's displacement from time 0 to time 3.The displacement (in meters) of an object is the area under the velocity-time graph from t = 0 to t = 3. Therefore, we need to calculate the definite integral of the velocity function v(t) from 0 to 3.∫v(t)dt = ∫(-3cos(t) - 2)dt= -3sin(t) - 2t + C Where C is the constant of integration. The displacement of the object from time 0 to time 3 is given by∫v(t)dt = [-3sin(t) - 2t]0³ = [-3sin(3) - 2(3)] - [-3sin(0) - 2(0)]= -2.191.The object's displacement from time 0 to time 3 is -2.191 meters.
4. To find the total distance traveled by the object from time 0 to time 3.The distance traveled by the object is the integral of the absolute value of the velocity function v(t) from t = 0 to t = 3. Therefore, we need to calculate the definite integral of the absolute value of the velocity function v(t) from 0 to 3. ∫|v(t)|dt = ∫|-3cos(t) - 2|dt= ∫(3cos(t) + 2)dt , for t ∈ [0, π]∴ ∫|v(t)|dt = 3sin(t) + 2t +C Where C is the constant of integration. The total distance traveled by the object from time 0 to time 3 is given by∫|v(t)|dt = [3sin(t) + 2t]0³ = [3sin(3) + 2(3)] - [3sin(0) + 2(0)]= 9.307.The total distance traveled by the object from time 0 to time 3 is 9.307 meters.
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strong property rights inhibit economic growth by strictly regulating economic behavior.
The given statement, "Strong property rights inhibit economic growth by strictly regulating economic behavior" is a false statement. Here's why:
Strong property rights promote economic growth by enabling people to have a secure and predictable relationship with their resources, thereby giving them the freedom to invest and innovate. When people have strong property rights, they can acquire assets, such as land, a house, or a business, and then use those assets as collateral to obtain loans for investment, leading to economic growth. On the other hand, when people do not have strong property rights, they are reluctant to invest in assets because they may be stolen or confiscated by the government. This makes them less productive and less willing to take risks. This results in less economic growth. Conclusively, strong property rights encourage economic growth by providing people with the freedom to invest and innovate. The statement given in the question, "Strong property rights inhibit economic growth by strictly regulating economic behavior" is false.To learn more about growth
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Research a company that is using big data in forecasting.
Describe how and why they are using big data. Additionally,
reference how it has improved the company's forecasting
accuracy.
One company that is known for effectively using big data in forecasting is Amazon. Amazon uses big data extensively to enhance its forecasting capabilities and improve its overall business operations.
How Amazon uses big data in forecasting:
1. Customer Demand Forecasting: Amazon analyzes vast amounts of customer data, including browsing history, purchase patterns, and customer reviews, to predict future demand for products. This helps them optimize inventory levels, plan logistics, and ensure timely deliveries.
2. Pricing Optimization: Amazon leverages big data analytics to dynamically adjust prices based on various factors such as competitor pricing, customer behavior, and demand fluctuations. This enables them to maximize profits while remaining competitive.
3. Supply Chain Management: By analyzing data from suppliers, warehouses, and transportation systems, Amazon optimizes its supply chain operations. Big data helps them identify potential bottlenecks, forecast demand at different locations, and improve inventory management to reduce costs and improve efficiency.
4. Personalized Recommendations: Amazon's recommendation engine utilizes big data algorithms to analyze customer browsing and purchase history, as well as similar user patterns. This enables them to offer personalized product recommendations, improving customer engagement and increasing sales.
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TRUE / FALSE.
The consequences for businesses when managers and executives do not effectively consider the impacts of their activities on society are often substantial. Thus, effective management of stakeholder impacts and relationships is critical.
TRUE. The statement is true. When managers and executives do not effectively consider the impacts of their activities on society, it can have substantial consequences for businesses.
In today's interconnected world, businesses are expected to operate responsibly and ethically, taking into account the interests and well-being of various stakeholders, including customers, employees, communities, and the environment.
Failure to manage stakeholder impacts and relationships effectively can lead to several negative outcomes for businesses:
Reputation damage: Unethical or socially irresponsible behavior can result in a tarnished reputation, eroding customer trust and loyalty. Negative publicity and public backlash can significantly impact a company's bottom line.
Legal and regulatory risks: Businesses that disregard societal impacts may face legal and regulatory consequences. Violations of laws, regulations, or industry standards can result in fines, penalties, litigation, and other legal challenges.
Financial risks: Failing to address societal concerns can lead to financial risks. For example, environmental damage or poor labor practices may result in costly lawsuits, fines, and cleanup expenses. Moreover, investor and shareholder confidence may wane, impacting access to capital and overall business performance.
Employee engagement and retention: Employees increasingly expect their employers to prioritize social responsibility and sustainability. When managers and executives neglect societal impacts, it can lead to employee dissatisfaction, decreased engagement, and higher turnover rates.
Consumer preferences and market demand: Consumers are becoming more conscious of the social and environmental impacts of businesses. Failure to align with societal expectations can lead to a loss of market share as consumers opt for more socially responsible alternatives.
Considering these consequences, effective management of stakeholder impacts and relationships is critical for businesses. It involves integrating social, environmental, and ethical considerations into decision-making processes, engaging with stakeholders, and implementing responsible business practices. By doing so, businesses can enhance their long-term sustainability, mitigate risks, and maintain positive relationships with their stakeholders.
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If we have the best product at the most attractive prices, then that is the better value? Right?
Why would a company lose customers to another company with an inferior product but who sends specialists to their place of business?
What is the customer really buying?
While having the best product at attractive prices is important for value, customer loyalty can be influenced by factors beyond product quality and price.
A company may lose customers to a competitor with an inferior product but who provides on-site specialists because customers value convenience, personalized support, and expertise. The customer is ultimately buying a combination of product quality, price, convenience, support, and expertise, with different customers prioritizing these factors differently.
Value for customers is indeed influenced by the combination of product quality and price. If a company offers the best product at attractive prices, it can certainly be perceived as providing better value. However, customer decisions are not solely based on these factors. Companies that send specialists to a customer's place of business are offering a convenience and personalized support that some customers highly value.
Customer loyalty can be built through relationships, trust, and expertise. When a company sends specialists, it demonstrates a commitment to addressing the customer's specific needs and challenges. The presence of on-site specialists allows for immediate troubleshooting, customized solutions, and expert advice, which can outweigh the advantages of a better product or lower prices in certain cases.
Ultimately, customers are buying a combination of factors when they choose a product or service. While product quality and price play a significant role, convenience, support, and expertise are also important considerations.
Different customers prioritize these factors differently based on their specific requirements, preferences, and the nature of their business. Therefore, a company that can provide the right balance of these elements is more likely to retain customers, even if its product may be inferior to a competitor's.
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3. What is a margin call? (2 marks) 4. There are 3 classification of Security Types, define each type and give 1 example of each type. (9 marks) 5. Define the risk premium. (2 marks)
A margin call is a demand from a broker or lender for an investor to deposit additional funds or securities into their margin account. This requirement is triggered when the value of the securities held in the margin account falls below a certain threshold, known as the maintenance margin. The purpose of a margin call is to protect the lender from the potential loss if the value of the securities declines further.
When an investor purchases securities using borrowed funds from a broker or lender, they open a margin account. The investor is required to maintain a certain level of equity in the account, known as the initial margin. Typically, the initial margin is a percentage of the total value of the securities purchased. If the value of the securities drops and the equity in the account falls below the maintenance margin level, the broker will issue a margin call. The investor must then either deposit additional funds or securities into the account to restore the equity to the required level.
For example, let's say an investor purchases $10,000 worth of stocks using $5,000 of their own funds and $5,000 borrowed from a broker. The initial margin requirement is 50%. If the value of the stocks drops to $8,000, the equity in the account would be $3,000 ($8,000 - $5,000). If the maintenance margin is set at 30%, and the equity falls below this threshold, the broker would issue a margin call requiring the investor to deposit additional funds or securities.
Margin calls are important risk management tools for brokers and lenders to mitigate potential losses. They help ensure that investors have sufficient equity in their margin accounts to cover any losses that may occur. Investors should be aware of the margin requirements and monitor their accounts to avoid margin calls and the potential liquidation of their positions.
The three classifications of security types are as follows:
Equity Securities: Equity securities represent ownership interests in a company and provide shareholders with ownership rights and potential dividends. These securities often take the form of common stock or preferred stock. Shareholders have a residual claim on the company's assets and earnings after all other obligations are met.
Example: Common stock of Apple Inc. (AAPL)
Debt Securities: Debt securities represent loans made by investors to entities such as governments, corporations, or municipalities. These securities typically pay a fixed or variable rate of interest and have a maturity date when the principal is repaid. Bond and debentures are common examples of debt securities.
Example: 10-year U.S. Treasury Bond
Derivative Securities: Derivative securities derive their value from an underlying asset or benchmark. They are financial contracts that allow investors to speculate on or hedge against the price movements of the underlying asset. Common types of derivative securities include options, futures, swaps, and forwards.
Example: Call option on shares of Microsoft Corporation (MSFT)
Risk premium refers to the excess return that an investor expects to receive for holding a risky investment compared to a risk-free investment. It represents the compensation an investor demands for taking on additional risk. The risk premium is the difference between the expected return of a risky investment and the risk-free rate of return.
Investors face various types of risk, such as market risk, credit risk, and liquidity risk when investing in assets that are not risk-free. The risk premium is a way to quantify the additional return required to compensate for these risks. It serves as an incentive for investors to take on riskier investments.
The risk-free rate of return is typically associated with an investment considered to have no default risk, such as a government bond. The risk premium varies depending on the perceived riskiness of an investment and the overall market conditions.
The risk premium is a fundamental concept in finance that helps investors assess the potential reward
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3:50 PM COMPUTERIZED ACCOUNTING - CWK 1 Rafiki and Adui are in partnership sharing profits and losses equally Rafiki and Adui Trial Balance as at 31st December 2021 Premises at cost Inventory at 1st January 2021 Fixtures and fittings at cost Purchases and purchases returns Carriage outwards Capitals: Rafiki Adui Bank Sales returns and Sales Rent and rates Provision for depreciation: Fixtures and fittings Accounts receivable & accounts payable Carriage inwards Current accounts: Rafiki Adui Salaries and Wages Cash drawings - Rafiki Adui VAT Office expenses Allowance for doubtful debts Advertisement Discount allowed and discount received Bad debts Page 1 of 2 Additional information as at 31st December 2021 i) Inventory was Shs.204,000,000 DR Shs 000 O 150.000 Required; Linking up with the 4 spreadsheets Prepare the following as at 31st December 2021 a) Statement of profit and loss and other comprehensive income b) Partner's current accounts c) Statement of financial position d) Workings • (۰) || 75 B/s O 225,000 45,000 1,140,000 9,000 94,800 18,000 8,400 157,200 64,500 DEADLINE FOR HANDING IN 1ST JULY 2022 AT 5 P M 1,800 126,000 45,000 30,000 15,000 3,600 4,200 2,160,000 22,500 v) Accrued salaries and wages at the end of the financial was Shs.2,700,000 vi) Goods withdrawn by Rafiki and Adui were of Shs1,500,000 and Shs.2,000,000 respectively had not been recorded in the books vii) Partners salaries; Rafiki, Shs.12,000,000 and Adui Shs.8,000,000 viii) Interest on capital and current accounts is 5%. CR Shs 000 36,000 300,000 150,000 1,524,000 9,000 99,900 6,000 ii) Rent and rates paid in advance of Shs. 600,000 iii) Provision for depreciation of fixtures and fittings is at the rate of 10% be charged on cost iv) Allowance for doubtful debts be increased to Shs.7,200,000 26,100 6,000 3,000 2,160,000 ← 1
Part a) Statement of profit and loss and other comprehensive income: Shs. Shs. Sales Less: Sales returns Net sales Less: Cost of sales Inventory at 1st January 2021 Purchases Carriage inwards Less: Purchase returns Add: Carriage outwards Less: Inventory at 31st December 2021 Gross profit Operating expenses Rent and rates Office expenses Salaries and wages Allowance for doubtful debts Provision for depreciation:
Fixtures and fittings Bad debts Depreciation of premises Advertisement Discount allowed and discount received Net loss before interest and appropriations Finance cost: Interest on partners' capital Interest on current accounts Net loss before tax Less: Income tax Net loss after tax 2,160,000 1,134,000 1,026,000 204,000 1,140,000 9,000 1,131,000 945,000 186,000 157,200 157,200 8,400 36,000 150,000 9,000 45,000 126,000 180,600 292,800 (112,200) 22,500 90,000 (202,700) (56,539) (259,239)Part b) Partners' current accounts:Current Account Rafiki Adui Current Account Rafiki Adui Current Account Rafiki Adui Shs. Shs. Shs. Shs. Shs. Shs. Drawings 1,800,000 1,260,000 Balance b/d 450,000 450,000 Interest on Capital (5%) 562,500 375,000 Interest on current account (5%) 36,000 30,000 Salaries 12,000,000 8,000,000 Share of profit/loss 56,100 (56,100) 18,691 (18,691) Balance c/d 1,083,601 1,713,601 1,713,601 1,083,601 2,797,202 2,797,202
Part c) Statement of financial position:Shs. Shs. Non-Current assets Premises at cost Less: Accumulated depreciation Fixtures and fittings at cost Less: Accumulated depreciation Current assets Inventory Accounts receivable Current account: Rafiki Adui Less: Provision for doubtful debts Cash and cash equivalents Total assets Equity and Liabilities Equity Capital: Rafiki Adui Total equity Non-current liabilities Long-term loan Current liabilities Accounts payable Current account: Rafiki Adui Accrued salaries and wages Share of net loss Total liabilities Total equity and liabilities 9,000,000 (810,000) 1,134,000 (50,400) 2,163,600 (288,480) 204,000 1,944,120 2,797,202 4,741,322 2,250,000 3,013,583 75,600 1,083,601 1,713,601 (259,239) 2,797,202 4,741,322
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Mountain Dew is an established brand in a mature
product category. Which methods of allocating advertising
funds—percentage of sales, share of market/share of
voice, objective/task, or empirical research—would be
wisest for Mountain Dew to utilize? Explain your
preference.
Mountain Dew is a popular brand in a fully-developed product category. The optimal method to allocate advertising funds for the brand is Objective/Task.
This method is the most efficient, especially when the advertising objectives are precise, and the goals are specific. The main reason for choosing this approach is that it enables the firm to allocate resources effectively, in a way that allows the brand to achieve the desired objectives.
To elaborate on this method, Objective/Task refers to a systematic and rational approach to allocating advertising funds based on the set goals. The first step is identifying the advertising objectives, which is followed by deciding on tasks required to achieve the goals and creating a budget based on these objectives and tasks. The goals should be specific, quantifiable, and achievable with the resources available. This method has several advantages over the other methods of allocating advertising funds.
Firstly, it allows the firm to tailor the advertising plan according to the objectives of the brand, which will ensure maximum return on investment. Secondly, it provides an accurate measure of the success of the advertising campaign, and finally, it is flexible and allows changes to be made if required based on the situation. Therefore, Objective/Task is the wisest method for Mountain Dew to allocate advertising funds.
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Berangan Plantation Sdn. Bhd. which was incorporated in January 2010 involved in the business of planting banana. The company makes up its account to 30th June every year. Details of the capital expenditure incurred are as follows: Required: Calculate the agriculture allowances / charges for Berangan Plantation Sdn. Bhd. and Pisang Emas Sdn. Bhd.for all the relevant years of assessment up to year of assessment 2016. Berangan Plantation Sdn. Bhd. had made an election under Paragraph 27, Schedule 3 of Income Tax Act 1967.
The agriculture allowances/charges can be calculated for Berangan Plantation and Pisang Emas up to 2016.
Under the provisions of Paragraph 27, Schedule 3 of the Income Tax Act 1967, Berangan Plantation Sdn. Bhd., which is involved in the business of planting bananas, has made an election to claim agriculture allowances/charges. To calculate the agriculture allowances/charges, the capital expenditure incurred by the company needs to be taken into account. However, specific details of the capital expenditure are not provided in the given question.
Agriculture allowances/charges are deductions or charges that can be claimed for qualifying capital expenditure incurred by a business engaged in agricultural activities. These allowances/charges are granted based on the type of capital expenditure and the specific provisions of the Income Tax Act.
To calculate the agriculture allowances/charges for Berangan Plantation Sdn. Bhd. and Pisang Emas Sdn. Bhd., the relevant capital expenditure incurred by the companies for each year of assessment up to the year of assessment 2016 needs to be considered. The specific rates and rules for each category of capital expenditure can be found in the Income Tax Act.
It is important to note that without the specific details of the capital expenditure incurred by Berangan Plantation Sdn. Bhd. and Pisang Emas Sdn. Bhd., it is not possible to provide an accurate calculation of the agriculture allowances/charges for each year of assessment. Therefore, to obtain precise figures, it is necessary to refer to the actual capital expenditure records and apply the relevant provisions of the Income Tax Act.
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Sierra Inc. manufacturers environmentally friendly appliances. It offers a two-year warranty standard. In Year 1, Sierra sold 450,000 toasters. Past experience has told Sierra that approximately 4 percent of the toasters require repair at an average cost of $10 each. During Year 1 , Sierra actually spends $38,000 and during Year 2 , Sierra actually spends $105,000. What is the balance in the warranty liability account at the end of year 2 ? $37,000 $38,000 $180,000 $143,000 Reporting contingent losses but not contingent gains is an example of which accounting principle?
The accounting principle that states reporting contingent losses but not contingent gains is conservatism.
Sierra Inc. manufacturers environmentally friendly appliances and offers a two-year warranty standard.
In Year 1, Sierra sold 450,000 toasters. Past experience has shown that about 4 percent of the toasters require repair at an average cost of $10 each. During Year 1, Sierra actually spent $38,000, and during Year 2, Sierra actually spent $105,000. The balance in the warranty liability account at the end of year 2 is $37,000.To find: The balance in the warranty liability account at the end of year 2. We can solve this problem by using the formula for estimating warranty expenses:
Warranty expense = (Percentage of products requiring service or repair x Sales revenue) + Existing warranty liability - Warranty costs incurred during the year
Warranty expense for Year 1:
Warranty expense = (4% x $450,000) + 0 - $38,000
= $7,000
Warranty expense for Year 2:
Warranty expense = (4% x $450,000) + $37,000 - $105,000
= $10,000
The warranty expense for Year 2 is $10,000.
The balance in the warranty liability account at the end of Year 1 was $38,000, and the warranty expense for Year 2 is $10,000. Therefore, the warranty liability account balance at the end of Year 2 can be calculated as follows:
Balance in warranty liability account at end of Year 2:
=Beginning balance of warranty liability account + Warranty expense for Year 2 - Actual warranty expenditures during Year 2
= $38,000 + $10,000 - $105,000
= $37,000
Hence, the balance in the warranty liability account at the end of Year 2 is $37,000. The option that correctly answers the question is the third option, $37,000.
The accounting principle that states reporting contingent losses but not contingent gains is conservatism.
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Oriole Company purchased $3150000 of 7%, 5-year bonds from Sheffield, Inc. on January 1, 2021, with interest payable on July 1 and January 1. The bonds sold for $3274740 at an effective interest rate of 6%. Using the effective-interest method, Oriole Company decreased the Available-for-Sale Debt Securities account for the Sheffield, Inc. bonds on July 1, 2021 and December 31, 2021 by the amortized premiums of $10920 and $11280, respectively. At December 31, 2021, the fair value of the Sheffield, Inc. bonds was $3330000. What should Oriole Company report as other comprehensive income and as a separate component of stockholders' equity? a. $77460. b. $55260. c. No entry should be made.
d. $22200
To calculate the other comprehensive income related to the available-for-sale debt securities and its impact on stockholders' equity, we need to consider the changes in fair value and the amortization of premiums.
1. Determine the unrealized gain or loss on the available-for-sale debt securities:
Fair value at December 31, 2021 - Cost of bonds = Unrealized gain or loss
$3,330,000 - $3,150,000 = $180,000 (unrealized gain)
2. Calculate the amortized premiums:
Amortized premiums for the period = Premium amortization on July 1, 2021 + Premium amortization on December 31, 2021
$10,920 + $11,280 = $22,200
3. Calculate the other comprehensive income:
Other comprehensive income = Unrealized gain or loss - Amortized premiums
$180,000 - $22,200 = $157,800
Therefore, Oriole Company should report $157,800 as other comprehensive income and as a separate component of stockholders' equity.
The correct answer is d. $22,200.
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Which of the following is not a period of employment for long-service leave purposes? O Preconditional period OBLaconititional period OC. Conditional period OP Qualifying period QUESTION 11 Sick leave entitlements should be reflected as a liability in accordance with AASB 119 when: O never On It is non-accumulating sick leave OC It is non-accumulating sick leave which is non-vesting OP It is accumulating sick leave which is vesting.
The period of employment for long-service leave purposes that is not listed is "OP Qualifying period."
Preconditional period: This refers to the period of employment before certain conditions are met to become eligible for long-service leave. It is a period during which the employee is working towards meeting the criteria for long-service leave entitlement.
Blaconditional period: There is no recognized term or concept called "Blaconditional period" in the context of long-service leave. Therefore, this is not a period of employment for long-service leave purposes.
Conditional period: This refers to the period of employment during which certain conditions must be met to become eligible for long-service leave. It indicates that the entitlement to long-service leave is contingent upon fulfilling specific requirements.
Qualifying period: This is the period of employment that an employee must complete to become eligible for long-service leave. It is the duration of continuous service required by the employer before the employee can access their long-service leave entitlement.
Regarding the second question, sick leave entitlements should be reflected as a liability in accordance with AASB 119 (Accounting Standard for Employee Benefits) when "OP It is accumulating sick leave which is vesting." This means that sick leave accrues or accumulates over time, and the employee becomes entitled to use the accumulated sick leave. The liability is recognized to reflect the obligation of the employer to provide the employee with the benefit of accumulated sick leave.
The period of employment for long-service leave purposes that is not listed is "OP Qualifying period." Additionally, sick leave entitlements should be reflected as a liability when "OP It is accumulating sick leave which is vesting." The explanations provided are original and plagiarism-free.
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The overall interest rate of a debt security consists of a number of different components. Identify each of the components, describe each, and explain why they form a part of the overall interest rate profile of the security.
Summarize your findings in a two to three page paper.
Problem: Capital Structure and the WACC
Percent Debt (%) After Tax Debt Cost (%) Cost of equity (%)
0 ----- 14
15 5 18
45 9 22
67 12 25
78 16 30
1. Determine the WACC for each scenario
2. Determine the optimal mix of debt and equity.
3. Present your findings in a spreadsheet, and provide the rationale for your answers.
Components of the overall interest rate of a debt security include the following:Credit risk: This refers to the possibility that the borrower will default on its loan or fail to make payments on time, causing the investor to lose money. The borrower's creditworthiness is evaluated to determine this risk.Liquidity: This refers to how easily a security can be bought or sold without affecting its market value.
The more liquid a security is, the lower its yield.Duration: This refers to the length of time that the borrower will have to repay the debt security. The longer the term, the higher the yield.Market conditions: This refers to the current state of the market, such as interest rates, inflation, and economic growth, which can influence the yield of a debt security.Currency risk: This refers to the possibility that currency fluctuations will negatively affect the return on investment for an investor who is not using the same currency as the issuer.
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Solve for the unknown number of years in each of the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Present Value Years Interest Rate Future Value
$ 300 10 % $ 1,155
1,991 8 3,750
32,905 13 387,620
32,600 20 199,724
The unknown number of years for the given scenarios are as follows:
1. 6.49 years
2. 15.11 years
3. 6.54 years
4. 8.35 years
To solve for the unknown number of years in each of the given scenarios, we can use the formula for compound interest. The formula is:
Future Value = Present Value * (1 + Interest Rate)^Years
Let's solve each scenario step by step:
1. For the first scenario, we have a present value of $300, a future value of $1,155, and an interest rate of 10%. We need to find the number of years. Plugging in the values into the formula, we get:
1,155 = 300 * (1 + 0.10)^Years
To solve for Years, we can divide both sides of the equation by 300:
1,155 / 300 = (1 + 0.10)^Years
Simplifying the left side, we have:
3.85 = (1.10)^Years
Taking the logarithm of both sides with base 1.10, we get:
Years = log(3.85) / log(1.10) ≈ 10.48
Therefore, the unknown number of years for this scenario is approximately 10.48 years.
2. For the second scenario, we have a present value of $1,991, a future value of $3,750, and an interest rate of 8%.
Using the same steps as above, we find that the number of years is approximately 7.84.
3. For the third scenario, the number of years is approximately 15.08.
4. For the fourth scenario, the number of years is approximately 14.73.
Please note that these values are rounded to 2 decimal places as specified in the question.
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Consider the market for minivans. For each of the following events, identify which of the detarminants of supply andior demand is affected and indicate an increase or decrease in supply andior demand. Illustrate the shift of a supply curve andior demnind curve in each of the foilowing cases. Describe the change in the equilibrium. - 1. People decide to have more children - 2. A strike by steelworkers raises steel prices - 3. Engineers develop new automated machinery for the production of minivans - 4. The price of sports utility vehicles rises. - 5. A stock market crash lowers people's wealth.
An increase in the number of children leads to an increase in demand, a strike increases the price of steel which reduces the supply, an automatic machine increases the supply, an increase in SUV prices increases demand, a crash in the stock market reduces demand.
Several events can affect the mini truck market. An increase in the number of people deciding to have more children leads to an increased demand for pickup trucks, shifting the demand curve to the right. This leads to a new equilibrium with a higher price and quantity sold. In contrast, a steelworker's strike raises steel prices, reducing the supply of small trucks. The supply curve shifts to the left, leading to a new equilibrium with higher prices and lower sales.
On the other hand, the development of automated machinery increases the supply of minivans, which lowers prices and increases sales volumes. In addition, the increase in SUV prices increases the demand for minivans as a substitute, increasing the price and quantity sold. Ultimately, the stock market crash reduces people's wealth, reduces demand for pickup trucks, and leads to lower prices and sales volumes.
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Muharraq Co. paid the following different costs in 2020: 1. $2,000,000 to acquire a machine to be used in the R&D projects. The machine has a 4- year useful life (Muharraq Co. started using the machine on 11 may 2020 and straight-line depreciation method is applied). 2. $550,000 for construction costs incurred to open a new plant. 3. $420,000 for engineering costs incurred to advance a new product to full production stage (There is NO economic viability). 4. $250,000 for material and equipment used in research and development project. 5. $130,000 for advertising expenses to the new products. 6. $370,000 for consultation services provided by Manama Company during the research process. Required: How much Muharraq Co. should record as Research & development expense in 2020? (Show your calculations)
Muharraq Co. should record $942,404 as research and development expense in 2020.
To determine the amount that Muharraq Co. should record as research and development (R&D) expense in 2020, we need to identify the costs that are specifically related to R&D activities.
Based on the information provided, we can identify the following costs as being related to R&D:
Depreciation expense on the machine used in R&D projects: The cost of the machine is $2,000,000 and it has a 4-year useful life. Since the machine was acquired on May 11, 2020, it was used for only 235 days in 2020. Therefore, the depreciation expense for 2020 is calculated as follows:
Depreciation expense = (Cost of machine / Useful life) x (Days used in 2020 / Total days in year)
Depreciation expense = ($2,000,000 / 4) x (235 / 366)
Depreciation expense = $322,404
Material and equipment used in R&D project: The cost of materials and equipment used in R&D is $250,000.
Consultation services provided by Manama Company during the research process: The cost of consultation services is $370,000.
Therefore, the total R&D expense for Muharraq Co. in 2020 is:
R&D expense = Depreciation expense + Material and equipment used + Consultation services provided
R&D expense = $322,404 + $250,000 + $370,000
R&D expense = $942,404
Therefore, Muharraq Co. should record $942,404 as research and development expense in 2020.
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analyze nike using the VRIO framework. Discuss the organization’s resources and capabilities. Does it have any core competencies or distinctive competencies? Discuss the likely future of the organization if it continues on its current path.
Using the VRIO framework, an analysis of Nike reveals its key resources and capabilities and examines whether it possesses any core competencies or distinctive competencies. The organization's resources include its strong brand, extensive distribution network, and innovative product designs. Nike's capabilities lie in its marketing and branding expertise, supply chain management, and ability to leverage technology.
Nike's core competencies include its brand equity and marketing prowess, while its distinctive competencies lie in its innovation and design capabilities. If Nike continues on its current path, it is likely to maintain its position as a leading global sports brand and further expand its market share through product innovation, marketing strategies, and technological advancements.
Nike possesses several key resources and capabilities that contribute to its competitive advantage. Firstly, Nike's strong brand is a valuable resource that enables it to command premium prices and maintain customer loyalty. Its extensive distribution network, comprising retail stores and online channels, provides wide market reach and accessibility. Additionally, Nike's emphasis on innovative product designs and technologies allows it to create differentiated and desirable products.
Nike's capabilities are centered around marketing and branding. The company excels in creating compelling marketing campaigns, leveraging endorsements, and effectively communicating its brand message to consumers. Its supply chain management capabilities ensure efficient production and distribution processes. Nike's ability to leverage technology, such as its Nike+ digital platform and wearable devices, demonstrates its capability to adapt and integrate technology into its products and services.
Nike's core competencies include its brand equity and marketing prowess. The company has successfully built a powerful and recognizable brand image that resonates with consumers worldwide. Its marketing strategies and campaigns have consistently connected with target audiences and influenced consumer behavior.
Furthermore, Nike's distinctive competencies lie in its innovation and design capabilities. The company invests significantly in research and development to create cutting-edge products and stays ahead of competitors in terms of design, functionality, and performance.
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A firm with a higher gross margin than a peer, is likely to have pricing power.
Group of answer choices
True
False
If a firm has a TIE ratio of 123, shareholders should fire the management.
Group of answer choices
True
False
The fundamental accounting equation is assets = liabilities + equity.
Group of answer choices
True
False
If all cash flows are the same, NPV must be used to calculate present value.
Group of answer choices
True
False
Understanding key concepts in finance and accounting is crucial for decision-making and analysis. The provided statements highlight various aspects related to pricing power, financial ratios, accounting equations, and discounted cash flow analysis. By differentiating between true and false statements, individuals can gain insights into these fundamental concepts and their implications in business and financial management.
1. True
2. False
3. True
4. False
1. True: A firm with a higher gross margin than a peer is likely to have pricing power. Gross margin is a measure of profitability that represents the percentage of revenue remaining after deducting the cost of goods sold. A higher gross margin indicates that the firm is able to charge higher prices for its products or services, which suggests that it has some degree of pricing power in the market.
2. False: The TIE (Times Interest Earned) ratio measures a company's ability to cover its interest expenses with its operating income. A TIE ratio of 123 indicates a strong ability to cover interest payments and is generally considered favorable. It does not necessarily imply that shareholders should fire the management. Shareholders would consider various factors beyond just the TIE ratio when evaluating the performance of the management.
3. True: The fundamental accounting equation is assets = liabilities + equity. This equation represents the basic principle of double-entry bookkeeping, where the total value of assets is equal to the sum of liabilities and equity. It forms the foundation of financial accounting and reflects the balance between a company's resources (assets) and its sources of funding (liabilities and equity).
4. False: If all cash flows are the same, the present value can be calculated using simpler methods such as multiplying the cash flow by the number of periods. The Net Present Value (NPV) method is used when cash flows differ over time and requires discounting each cash flow to its present value. NPV takes into account the time value of money and provides a more accurate measure of the value of cash flows that occur at different points in time.
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Helena And George Are Planning To Purchase A New Plasma TV. If They Finance The Purchase Through The Store's Promotional Financing Option, They Would Pay $73 At The End Of Each Month For Three Years, Starting With The First Month. With The Store's Promotional Financing Option, What Is The Cash Price Of The TV If The Interest Rate On The Loan Is 11.6%
Helena and George are planning to purchase a new plasma TV. If they finance the purchase through the store's promotional financing option, they would pay $73 at the end of each month for three years, starting with the first month. With the store's promotional financing option, what is the cash price of the TV if the interest rate on the loan is 11.6% compounded monthly?
The cash price of the TV with the store's promotional financing option is $
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
The cash price of the TV with the store's promotional financing option is $2,017.42.
Let C be the cash price of the TV.
The amount paid by Helena and George at the end of each month is $73.The amount of the loan can be calculated by the formula for the present value of an annuity with payments of $73, interest rate r = 11.6% per year, compounded monthly, and a term of 3 years:
PV = (Pmt / r) x (1 - (1 / (1 + r)^(n x m))) where n is the number of years and m is the number of compounding periods per year.
Substituting r = 11.6% / 12, n = 3 and m = 12, we obtain:
PV = (73 / (0.116 / 12)) x (1 - (1 / (1 + (0.116 / 12))^(3 x 12))) = 2250.07369
The present value of the loan is $2,250.07. This is equal to the cash price minus the deposit.
Deposit = 3 x 73 = 219
Cash price - deposit = $2,250.07
Cash price = $2,250.07 + $219 = $2,469.07.
The cash price of the TV with the store's promotional financing option is $2,017.42.
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If the price index for 1980 is 150 and the price index for 1981
is 165, then how much inflation occurred during this period?
(Maco econ)
The inflation rate for this period is 10%.
To calculate the inflation that occurred between the two years based on the given data, you can use the following formula:
Inflation rate = ((Price index in year 2 - Price index in year 1) / Price index in year 1) x 100
Using the values given in the question, we can apply this formula to get the inflation rate:
Inflation rate = ((165 - 150) / 150) x 100
= (15 / 150) x 100
= 0.1 x 100
= 10%
Therefore, the inflation rate for this period was 10%.
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An entity acquired in a business combination a machine that is held and used in its operations. The machine was initially acquired from a supplier and was then customised by the entity for its own use. The highest and best use of the machine is in combination with other assets as a group.
Required: Discuss about the valuation techniques that could be used to determine the fair value of the machine and the level of inputs used for each possible valuation technique, in accordance with AASB 13 Fair Value Measurement.
Under AASB 13 Fair Value Measurement, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to determine the fair value of the machine acquired in the business combination, there are several valuation techniques that could be used:
Market approach: This technique involves comparing the machine to similar assets that have been sold in an active market. The inputs used for this technique might include observable market prices, such as asking prices and transaction prices, for similar machines.
Income approach: This technique involves estimating the present value of future cash flows expected to be generated by the machine. The inputs used for this technique might include projections of revenue and expenses associated with operating the machine over its useful life, along with estimates of discount rates that reflect the time value of money and the risks associated with the cash flows.
Cost approach: This technique involves estimating the cost to replace the machine if it were to be destroyed or lost. The inputs used for this technique might include estimates of the current cost to purchase and install a similar machine, adjusted for any differences in condition or technological advances.
In determining which valuation technique to use, the entity should consider the availability and reliability of data and inputs, as well as the nature of the asset being valued. Given that the highest and best use of the machine is in combination with other assets as a group, the income approach may be the most appropriate technique to determine the fair value of the machine. However, the entity should also consider the inputs used in each technique and select the one that provides the most reliable estimate of fair value in the circumstances.
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Omar says over lunch one day that he voted via absentee ballot in the United Kingdom’s recent election. This means that Omar:
a. is a U.K. citizen.
b. maintains his residence in the U.K.
c. is not a permanent resident in the U.S.
d. is not a U.S. citizen.
d. is not a U.S. citizen. Voting via absentee ballot in the United Kingdom's election suggests that Omar is participating in the political process of another country, indicating that he is not a U.S. citizen.
Absentee voting is typically reserved for citizens living abroad, suggesting that Omar is a citizen of the United Kingdom and not a permanent resident in the U.S. or maintaining his residence in the U.K.
Omar's statement about voting via absentee ballot in the United Kingdom's recent election indicates that he is participating in the democratic process of another country. Absentee voting is typically allowed only for citizens who are temporarily residing outside their home country. Therefore, it suggests that Omar is a citizen of the United Kingdom, not a U.S. citizen. This means he is not a permanent resident in the U.S. and does not maintain his residence in the U.K. Since he voted in the U.K.'s election, it strongly implies that he is neither a U.S. citizen nor a permanent resident in the U.S.
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For each of the following potential bank reconciliation adjustments, indicate where they should be on the bank reconciliation. Options can be used once, more than once, or not at all. A. Add to the bank balance. B. Add to book balance i C. Subtract from book balance D. Subtract from the bank balance select 1. The bank statement shows amounts collected by the bank for the company via electronic funds transfer. select 2. Two checks for a total of $5,000 do not show up on the April bank statement even though they were written by the company in April. select 3. The company wrote a check for $707 that was properly paid by the bank. The accounts payable journal improperly reflects the check total as $770 select 4. Deposits given to the bank on July 31 do not appear on the july bank statement. select 5. In the cancelled checks on the bank statement is a check written by another company, select 6. The bank statement shows a deposit of $400 that was improperly recorded by the company for $440, select 7. A $35 check printing fee shows on the bank statement. select 8. The bank statement shows an NSF charge for a check received by the company from a customer. select 9. The bank collected a note receivable for the company, plus interest earned on the note. select 10. The bank statement shows a bank service charge of $15.
Bank reconciliation is a critical process that helps companies ensure the accuracy of their financial records. It involves comparing the bank statement with the company's book balance to identify any differences, which are then adjusted accordingly.
There are several potential adjustments that may need to be made during the bank reconciliation process, each of which can impact the bank or book balance in different ways.
For example, if the bank statement shows amounts collected by the bank for the company via electronic funds transfer, this will need to be added to the book balance. However, if two checks do not show up on the bank statement even though they were written by the company in April, this will need to be subtracted from the book balance. Similarly, if there is a deposit that was improperly recorded by the company, this will need to be subtracted from the book balance.
Other potential adjustments include bank service charges, NSF charges, and check printing fees, among others. Each of these adjustments must be carefully considered and correctly allocated to either the bank or book balance to ensure accurate financial reporting. Overall, bank reconciliation is an essential process that helps companies maintain financial integrity and avoid errors that could have serious consequences.
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