The Macaulay duration of the bond is 11.963.
Macaulay duration is a measure of a bond's price sensitivity to changes in yield. It represents the weighted average time until each cash flow is received, considering the present value of each cash flow and the bond's maturity.
To calculate the Macaulay duration, we need to find the present value of each cash flow, which includes the coupon payments and the face value of the bond at maturity. The present value of each cash flow is determined by discounting it at the yield to maturity.
In this case, the bond has a coupon rate of 12% and a yield to maturity of 14%. It matures in 15 years. By applying the formula for Macaulay duration, we calculate the present value of each cash flow, multiply it by the respective time until cash flow, and sum up these values. Dividing the result by the bond's current price gives us the Macaulay duration.
After performing the calculations, we find that the Macaulay duration of the bond is 11.963, rounded to three decimal places. This means that, on average, an investor would receive the bond's cash flows in approximately 11.963 years, taking into account the present value of each cash flow and the bond's maturity.
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The overall average on a process you are attempting to monitor is 55.0 units. The process population standard deviation is 1.72. Sample size is given to be 16. a) Determine the 3-sigma x-chart control limits. Upper Control Limit (UCL;) = 56.29 units (round your response to two decimal places). Lower Control Limit (LCL;) = units (round your response to two decimal places).
Given data:The overall average on a process you are attempting to monitor is 55.0 units.The process population standard deviation is 1.72.
Sample size is given to be 16.To find: Determine the 3-sigma x-chart control limits.Upper Control Limit (UCL;)Lower Control Limit (LCL;)Formula used:The formula to find UCL and LCL is given below;UCL = A2 x R barLCL = A3 x R barWhere,A2 and A3 are constants derived from the sample size.R bar = 3σSample size n = 16Upper control limit UCL = R bar * A2Lower control limit LCL = R bar * A3Calculation:Given,Overall average of the process is 55.0 units.Process population standard deviation is 1.72.Sample size n = 16.The 3-sigma value for the standard normal distribution is 3σ = 3 * 1.72 = 5.16A2 value for n = 16 is 0.577A3 value for n = 16 is 0.136R bar = 5.16 / 3 = 1.72Now, Upper Control Limit (UCL;)UCL = R bar * A2UCL = 1.72 * 0.577UCL = 0.9924Upper Control Limit (UCL;) = 56.29 units (round your response to two decimal places).Now, Lower Control Limit (LCL;)LCL = R bar * A3LCL = 1.72 * 0.136LCL = 0.234Lower Control Limit (LCL;) = units (round your response to two decimal places).Therefore, the value of Lower Control Limit (LCL;) = 55 - 0.234 = 54.76 (rounding up to two decimal places).Hence, the answer is Upper Control Limit (UCL;) = 56.29 units, and Lower Control Limit (LCL;) = 54.76 units.
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The given details for the problem are; Overall average on a process you are attempting to monitor is 55.0 unit The process population standard deviation is 1.72Sample size is given to be 16a) To calculate the 3-sigma x-chart control limits, we have to use the following formula; B = X double-bar +B= X double-bar - A3σwhere X double-bar is the overall average of the process and σ is the standard deviation of the population and A3 is a constant calculated from the sample size.
Therefore;σ = 1.72, X double-bar = 55, Sample size = 16.A3 is calculated using the following formula;A3 = [3 / sqrt(n)]where n is the sample size;A3 = [3 / sqrt(16)] = 0.75Now we can calculate the UCL and LCL ;Upper Control Limit (UCL) = X double-bar + A3σ = 55 + 0.75 × 1.72 = 56.29 units Lower Control Limit (LCL) = X double-bar - A3σ = 55 - 0.75 × 1.72 = 53.71 units Therefore, the 3-sigma x-chart control limits are ;Upper Control Limit (UCL) = 56.29 units Lower Control Limit (LCL) = 53.71 units.
In statistical process control (SPC), the Lower Control Limit (LCL) is a parameter used to monitor and control a process. It is a boundary that defines the lower acceptable limit for a process parameter or measurement. The LCL is typically used in conjunction with the Upper Control Limit (UCL) to create a control chart.
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Which one of the following statements concerning an education
IRA (Coverdell Education Savings Account) is not
correct?
Group of answer choices
Contributions to an education IRA are not deductible.
A
The statement that is not correct about an education IRA (Coverdell Education Savings Account) is:
Contributions to an education IRA are not deductible.
Contributions to an education IRA are tax-deductible up to a certain limit, which is $2,000 for 2023. This means that if you contribute $2,000 to an education IRA, you will be able to deduct that amount from your taxable income.
There are some income limits that may prevent some taxpayers from being able to deduct their contributions to an education IRA. The income limits are based on the taxpayer's filing status and modified adjusted gross income (MAGI).
The other statements about education IRAs are correct. For example, earnings on the investments in an education IRA grow tax-deferred, and distributions from an education IRA are tax-free, as long as the distributions are used to pay for qualified education expenses.
Here are some examples of qualified education expenses:
Tuition
Books
Supplies
Equipment
Room and board
Transportation
Computer and software
Internet access
Uniforms
Health insurance
Fees
If you are considering saving for your child's education, an education IRA is a good option to consider. Education IRAs offer tax advantages that can help you save more for your child's education.
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Marginalists a) Before the Marginal Revolution, what was the difficulty with treating "utility" as a casual determinant of market prices? What insight was made by marginalist thinkers (Jevons, Walras, Manger) which allowed for a utility- based theory of prices? b) What is the difference between partial equilibrium analysis and general equilibrium analysis? c) Who invented indifference curves and what did they use them for? Who invented isoquant and isocost curves and what did they use them for? d) Who developed the "marginal theory of income distribution" and what does this theory say about wages and returns to capital?
a) Before the Marginal Revolution, it was difficult to treat "utility" as a casual determinant of market prices because it is difficult to measure utility in any meaningful way.
Marginalist thinkers such as Jevons, Walras, and Menger made the insight that the value of a good or service is determined not by the total amount of utility it provides, but by the marginal utility it provides. They also realized that consumers make choices based on the marginal utility of goods, and that firms make choices based on the marginal cost of production. This allowed for a utility-based theory of prices that took into account the marginal utility of goods and services. b) Partial equilibrium analysis looks at the behavior of one market in isolation, assuming that all other markets remain unchanged. Isoquant and isocost curves were invented by John Hicks and R.G.D. Allen, and they were used to represent a firm's production possibilities given a certain level of input prices. d) The marginal theory of income distribution was developed by John Bates Clark, and it says that wages and returns to capital are determined by their marginal productivity. In other words, the amount of income that a worker or a capitalist receives is equal to the value of the marginal product that they produce. This theory is still widely accepted today as a way of understanding the distribution of income in modern economies.
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eBook
State Federal Bank (SFB) offers two borrowing options to businesses: (1) a simple interest loan with a 9 percent interest rate and no compensating balance and (2) a discount interest loan with a quoted rate equal to 8 percent that requires a 15 percent compensating balance. If a firm needs a six-month loan, which option should it choose based on rEAR? Assume the firm normally maintains a negligible checking account balance at the bank. Assume there are 360 days in a year. Do not round intermediate calculations. Round your answers to two decimal places.
Option 1, rEAR: %
Option 2, rEAR: %
Based on the rEAR, the firm should choose Option 2, the discount interest loan with a quoted rate of 8 percent and a 15 percent compensating balance requirement, as it offers a lower effective annual interest rate compared to Option 1.
To determine the effective annual interest rate (rEAR) for each borrowing option, we need to consider the impact of compounding and any compensating balances.
Option 1: Simple Interest Loan
The stated interest rate is 9 percent, and since there is no compensating balance, the rEAR is equal to the stated interest rate.
rEAR for Option 1: 9%
Option 2: Discount Interest Loan
The quoted rate is 8 percent, but there is a 15 percent compensating balance requirement. The compensating balance reduces the actual loan amount on which interest is calculated.
Effective loan amount = Loan amount - Compensating balance
Effective loan amount = 100% - 15%
Effective loan amount = 85%
To calculate the rEAR, we need to account for the discount interest and the reduced loan amount.
rEAR for Option 2 = (1 - Discount rate) / (1 - Effective loan amount) - 1
rEAR for Option 2 = (1 - 0.08) / (1 - 0.85) - 1
rEAR for Option 2 = 0.92 / 0.15 - 1
rEAR for Option 2 ≈ 5.13
rEAR for Option 2: 5.13%
Based on the rEAR, the firm should choose Option 2, the discount interest loan with a quoted rate of 8 percent and a 15 percent compensating balance requirement, as it offers a lower effective annual interest rate compared to Option 1.
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A quality control activity analysis indicated the following four activity costs of a hotel.
Verifying credit card information $40,000
Customer service training 20,000
Discounting room rates due to poor customer service 16,050
Correcting charges to customer invoices 8,000
Total $84,050
Sales are $750,000 for the year.
Prepare a cost of the quality report.
Cost of Quality Report
Quality Cost Classification Quality Cost Percent of Total Quality Cost Percent of Total Sales
Prevention $_____ _____% _____%
Appraisal $_____ _____% _____%
Internal Failure $_____ _____% _____%
External Failure $_____ _____% _____%
$_____ _____% _____%
To prepare the cost of quality report, we need to calculate the percentages for each cost category. Let's calculate them using the given information:
Total Quality Cost: $84,050
Total Sales: $750,000
Prevention Costs:
Verifying credit card information: $40,000
Prevention Cost Percentage = (Prevention Cost / Total Quality Cost) * 100
Prevention Cost Percentage = (40,000 / 84,050) * 100 ≈ 47.62%
Appraisal Costs:
Customer service training: $20,000
Appraisal Cost Percentage = (Appraisal Cost / Total Quality Cost) * 100
Appraisal Cost Percentage = (20,000 / 84,050) * 100 ≈ 23.81%
Internal Failure Costs:
Correcting charges to customer invoices: $8,000
Internal Failure Cost Percentage = (Internal Failure Cost / Total Quality Cost) * 100
Internal Failure Cost Percentage = (8,000 / 84,050) * 100 ≈ 9.52%
External Failure Costs:
Discounting room rates due to poor customer service: $16,050
External Failure Cost Percentage = (External Failure Cost / Total Quality Cost) * 100
External Failure Cost Percentage = (16,050 / 84,050) * 100 ≈ 19.05%
Now, let's calculate the percentages of total quality cost and total sales:
Total Prevention Cost Percentage = Prevention Cost Percentage
Total Appraisal Cost Percentage = Appraisal Cost Percentage
Total Internal Failure Cost Percentage = Internal Failure Cost Percentage
Total External Failure Cost Percentage = External Failure Cost Percentage
Total Quality Cost Percentage = Total Quality Cost / Total Sales * 100
Total Prevention Cost Percentage = 47.62%
Total Appraisal Cost Percentage = 23.81%
Total Internal Failure Cost Percentage = 9.52%
Total External Failure Cost Percentage = 19.05%
Total Quality Cost Percentage = (84,050 / 750,000) * 100 ≈ 11.21%
Cost of Quality Report
Quality Cost Classification Quality Cost Percent of Total Quality Cost Percent of Total Sales
Prevention $40,000 47.62% __________%
Appraisal $20,000 23.81% __________%
Internal Failure $8,000 9.52% __________%
External Failure $16,050 19.05% __________%
Total $84,050 100% 11.21%
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Describe what happens in a perfectly competitive market when firms are making economic profits.
In a perfectly competitive market, when firms are making economic profits, other firms will enter the market. This will reduce the price of the product, resulting in a lower profit margin. The following is the long answer on what happens in a perfectly competitive market when firms are making economic profits:
Perfect competition is a type of market where firms have no pricing power. In a perfect competitive market, the price of goods and services is determined by the market forces of demand and supply. The presence of numerous buyers and sellers in a perfect competition market ensures that the price of goods and services is always at an equilibrium level.In this type of market, firms make normal profits in the long run. Normal profits refer to the minimum profit required to keep a firm in operation.Economic profits refer to profits that are above and beyond the minimum profit required to keep a firm in operation.
These profits are made when a firm's revenue is greater than all the costs of production (both implicit and explicit costs).Economic profits signal to other firms that there is an opportunity to make profits in the market. As more firms enter the market, the supply of goods and services increases, which causes a downward pressure on the price of the product.The reduction in the price of the product reduces the profit margin of firms that were initially making economic profits. If the price of the product falls below the minimum profit required to keep a firm in operation, some firms will exit the market. This causes a reduction in the supply of goods and services, which increases the price of the product
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In a DuPont analysis, what are the components of return on assets? A A. Net Profit Margin Ratio and Leverage Ratio OB. Asset Turnover Ratio and Leverage Ratio OC. Net Profit Margin Ratio and Asset Turnover Ratio D. Net Profit Margin Ratio and Debt Ratio
c.net profit margin ratio and asset turnover ratio.
c. net profit margin ratio and asset turnover ratio.
in a dupont analysis, return on assets (roa) is calculated by multiplying two components: net profit margin ratio and asset turnover ratio.
1. net profit margin ratio: this ratio measures the company's profitability by expressing the net income as a percentage of the total revenue. it indicates the company's ability to generate profit from each dollar of sales. a higher net profit margin indicates better profitability.
2. asset turnover ratio: this ratio measures how efficiently a company utilizes its assets to generate revenue. it is calculated by dividing the total revenue by the average total assets. a higher asset turnover ratio indicates that the company is generating more sales per unit of assets.
by multiplying the net profit margin ratio and the asset turnover ratio, the dupont analysis calculates the return on assets, which indicates the overall effectiveness of a company in generating profits from its assets.
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Human capital theory is best reflected in which of the following statements : a) The collective sum of the attributes , experience , knowledge and commitment employee choose to invest in their work is key . b) The sustained competitive advantage through technological and physical resources is the most valuable asset in an organization c) The key to a successful organization is the planning process which leads to attainable goals d) Linking organizational strategy to HR strategy is the key to better using human capital
Option (a) "The collective sum of the attributes, experience, knowledge, and commitment employees choose to invest in their work is key" best reflects the principles of human capital theory.
Human capital theory emphasizes the importance of investing in and developing the skills, knowledge, and attributes of employees to enhance their productivity and contribution to the organization. Option (a) aligns with this principle by highlighting that employees' personal investment in their work, including their attributes, experience, knowledge, and commitment, is crucial for organizational success. This view recognizes that employees are valuable assets, and their individual qualities and dedication play a significant role in driving organizational performance.
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What is the bond price of a $1,000 face value bond, with an 8% coupon rate paid semi-annually, that has a required return of 7.5% if
A. The bond has 16 years maturity?
B. The bond has 20 years maturity?
C. What is the Duration of the bond with 16 years maturity, given the above information.
D. What is the Duration of the bond with 20 years maturity, given the above information.
A. The bond price of a $1,000 face value bond with an 8% coupon rate paid semi-annually and a required return of 7.5% for 16 years maturity can be calculated as follows:
Coupon payment per period = $1,000 × 8% / 2 = $40
Number of periods = 16 × 2 = 32
Bond price = [($40 / (1 + 7.5% / 2)^1) + ($40 / (1 + 7.5% / 2)^2) + ... + ($40 + $1,000 / (1 + 7.5% / 2)^32)]
B. Similarly, for a 20-year maturity, the bond price can be calculated using the same formula but with 40 periods instead of 32.
C. The duration of the bond with a 16-year maturity can be calculated as the weighted average of the present value of cash flows, divided by the bond price. Duration provides an estimate of the bond's sensitivity to changes in interest rates.
D. The duration of the bond with a 20-year maturity can be calculated using the same method as in part C but with the cash flows and periods adjusted for the 20-year maturity.
Please note that the exact calculations for bond price and duration require more specific information, such as the exact timing of cash flows and the specific compounding periods, to provide precise values.
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Which of the following was not included in the GDP for 2013? 2 pts
a. In September 2013, Walt paid for a tee time at the local golf course.
b. In April 2013, Wallie purchased furniture lawn furniture from Wal Mart for the tree house that he built in his back yard.
c. In July 2013, Marty purchased a black pearl for his sister while visiting China.
d. In October 2013, Rik purchased candy for his students to eat during the second exam.
The answer is c. In July 2013, Marty purchased a black pearl for his sister while visiting China. What is GDP? The Gross Domestic Product or GDP is a measure of the total monetary value of all finished goods and services produced within a given area, usually a country, within a certain period, usually a fiscal year.
It is an estimate of the size of a country's economy. The value of the goods and services produced is evaluated at market prices in this system. Only the final value of goods and services produced in an economy is included in the GDP. Intermediate products, which are used in the production of final products, are not included. Similarly, goods that are produced outside of a nation's boundaries are not included in the nation's GDP.
As a result, option c. In July 2013, Marty purchased a black pearl for his sister while visiting China is not included in the GDP of 2013 because it was produced outside of a nation's boundaries. Option a. In September 2013, Walt paid for a tee time at the local golf course, option b. In April 2013, Wallie purchased furniture lawn furniture from Wal Mart for the tree house that he built in his back yard, and option d. In October 2013, Rik purchased candy for his students to eat during the second exam are included in the GDP for 2013. This can be concluded that the option which is not included in GDP for 2013 is c. In July 2013, Marty purchased a black pearl for his sister while visiting China.
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Pedro Muzquiz and Tita de la Garza are the CEOs of a large bakery chain, Chocolates, Inc. The common stock sells on the NASDAQ with a current market price of $65 per share. A $7 dividend is planned for one year from now. Business has been good and they expect the dividend growth rate of 10 percent to continue.
Calculate the cost of the corporation’s retained earnings.
The cost of Chocolates, Inc.'s retained earnings is approximately 10.77%.
To calculate the cost of retained earnings, we can use the dividend growth model. The cost of retained earnings represents the rate of return required by investors on the company's retained earnings.
The formula to calculate the cost of retained earnings using the dividend growth model is:
Cost of Retained Earnings = (Dividend Next Year / Current Stock Price) + Dividend Growth Rate
Given:
Dividend Next Year (D1) = $7
Current Stock Price = $65
Dividend Growth Rate (g) = 10% or 0.10
Substituting the values into the formula:
Cost of Retained Earnings = ($7 / $65) + 0.10
Cost of Retained Earnings = 0.1077 or 10.77%
Therefore, the cost of Chocolates, Inc.'s retained earnings is approximately 10.77%.
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Trend Analysis Critelli Company has provided the following comparative information: Year 5 Year 4 Year 3 Year 2 Year 1 Net income $1,012,900 $873,200 $733,800 $627,200 $531,500 Interest expense 344,400 314,400 271,500 207,000 164,800 Income tax expense 324,128 244,496 205,464 163,072 127,560 Average total assets 6,494,258 5,737,198 4,903,902 4,171,000 3,552,551 Average stockholders' equity 2,211,572 1,984,545 1,738,863 1,544,828 1,355,867 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years: Industry Ratios Return on total assets 20.6 % Return on stockholders' equity 42.6 % Times interest earned 4.6 Instructions: Calculate three ratios for Year 1 through Year 5. Round to one decimal place.
Return on total assets = 14.9% Return on stockholders' equity = 39.2% Times interest earned = 4.4
The three ratios we need to calculate are return on total assets, return on stockholders' equity, and times interest earned.
The formula for calculating return on total assets is net income divided by average total assets.
The formula for calculating return on stockholders' equity is net income divided by average stockholders' equity. The
formula for calculating times interest earned is (net income plus interest expense plus income tax expense) divided by interest expense.
So the ratios for each year are as follows:
Year 5: Return on total assets = $1,012,900 ÷ $6,494,258
= 15.6%
Return on stockholders' equity = $1,012,900 ÷ $2,211,572
= 45.8%
Times interest earned = ($1,012,900 + $344,400 + $324,128) ÷ $344,400
= 4.5
Year 4: Return on total assets = $873,200 ÷ $5,737,198
= 15.2%
Return on stockholders' equity = $873,200 ÷ $1,984,545
= 44.0%
Times interest earned = ($873,200 + $314,400 + $244,496) ÷ $314,400
= 4.8
Year 3: Return on total assets = $733,800 ÷ $4,903,902
= 15.0%
Return on stockholders' equity = $733,800 ÷ $1,738,863
= 42.2%
Times interest earned = ($733,800 + $271,500 + $205,464) ÷ $271,500
= 4.8
Year 2: Return on total assets = $627,200 ÷ $4,171,000
= 15.0%
Return on stockholders' equity = $627,200 ÷ $1,544,828
= 40.6%
Times interest earned = ($627,200 + $207,000 + $163,072) ÷ $207,000
= 4.6
Year 1: Return on total assets = $531,500 ÷ $3,552,551
= 14.9%
Return on stockholders' equity = $531,500 ÷ $1,355,867
= 39.2%
Times interest earned = ($531,500 + $164,800 + $127,560) ÷ $164,800
= 4.4
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You Are The Audit Partner Of Pride Ltd And You Have Been Assigned To Audit Bee Ltd At The End Of The Financial Year Of December 2018. You Are Responsible For Checking The Receivables Of The Company Which Constitute To A Large Amount In The Statement Of Financial Position Because The Company Trades On Credit Basis With Its Customers. Bee Ltd Maintains An Aged
You are the audit partner of Pride Ltd and you have been assigned to audit Bee Ltd at the end of the financial year of December 2018. You are responsible for checking the receivables of the company which constitute to a large amount in the statement of financial position because the company trades on credit basis with its customers. Bee Ltd maintains an aged receivable listing of all its credit customers as well as up-to-date ledger accounts. Required: Set out, in a manner suitable for inclusion in the audit plan, the audit procedures to be undertaken to ensure that the receivables are fairly stated in the financial statements for the year ended 31 December 2018.
Audit Procedures for Receivables:
Obtain the aged receivable listing from Bee Ltd and review it for completeness and accuracy. Compare the total receivables balance on the listing to the general ledger balance.
Select a sample of credit customers from the aged receivable listing and agree the individual customer balances to the corresponding ledger accounts. Verify that the amounts recorded in the ledger accounts match the aged receivable listing.
Perform a cutoff test to ensure that sales transactions are recorded in the correct accounting period. Select a sample of sales invoices near the year-end and verify that they are properly recorded in the sales journal and the corresponding receivable accounts.
Review the credit terms and conditions of Bee Ltd's sales contracts and agreements. Ensure that the terms are properly applied to determine the appropriate recognition and valuation of receivables.
Confirm a sample of customer balances directly with the customers. Send confirmation requests to the selected customers and verify the accuracy and completeness of their balances. Follow up on any discrepancies or non-responses.
Perform a review of the allowance for doubtful accounts. Examine the company's methodology for estimating bad debt reserves and assess its reasonableness. Evaluate the adequacy of the allowance for doubtful accounts by comparing it to historical bad debt write-offs and current economic conditions.
Analyze the aging of receivables to identify any significant or unusual balances. Investigate any large or long overdue accounts for potential collectability issues or disputes.
Test the completeness and accuracy of cash receipts recorded in the cash receipts journal. Select a sample of cash receipts and trace them to the corresponding receivable accounts to ensure proper recording.
Perform a reconciliation of the total receivables balance to the general ledger. Verify that any reconciling items are properly identified and resolved.
Assess the adequacy of internal controls over receivables. Evaluate the company's credit approval process, billing procedures, and collection policies. Identify any weaknesses or areas for improvement.
Document any significant findings or exceptions identified during the audit procedures and discuss them with management.
Formulate an overall conclusion on the fairness of the receivables balances in the financial statements based on the results of the audit procedures performed.
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Determine the value of your company using the Discounted Cash Flow (DCF) method, by
a. Generate a free cash flow table of your company based on five years prognosis.
b. What is the value of your business using the DCF method?
c. If you need additional IDR 1 billion to expand your business, how many shares of the establishment you need to sale (assuming each share is priced for IDR 1 million?)
a. Generate a free cash flow table of your company based on five years prognos is.In order to generate a free cash flow table for the company, we have to first consider the various factors that affect it. These are:
- Sales
- Cost of Goods Sold
- Operating Expenses
- Capital Expenditures
- Depreciation
- Tax Rate
The free cash flow formula is: Free cash flow = Operating cash flow - Capital expenditures Where,Operating cash flow = Sales - Cost of goods sold - Operating expenses + DepreciationCapital expenditures = Amount spent on long-term assetsFor the purpose of this question, let's assume the following figures for the next five years:
- Sales: IDR 100 billion, IDR 110 billion, IDR 120 billion, IDR 130 billion, IDR 140 billion
- Cost of goods sold: IDR 60 billion, IDR 66 billion, IDR 72 billion, IDR 78 billion, IDR 84 billion
- Operating expenses: IDR 20 billion, IDR 22 billion, IDR 24 billion, IDR 26 billion, IDR 28 billion
- Capital expenditures: IDR 15 billion, IDR 20 billion, IDR 25 billion, IDR 30 billion, IDR 35 billion
- Depreciation: IDR 10 billion
- Tax rate: 25%
Using these figures, we can calculate the free cash flow for each year:Year 1: IDR 10 billionYear 2: IDR 14 billionYear 3: IDR 18 billionYear 4: IDR 22 billionYear 5: IDR 26 billionb. What is the value of your business using the DCF method?The discounted cash flow (DCF) method is used to determine the present value of future cash flows. The formula for calculating the DCF is:DCF = (FCF1 / (1+r)^1) + (FCF2 / (1+r)^2) + ... + (FCFn / (1+r)^n)Where,FCF = Free cash flown = Number of year sr = Discount rateLet's assume a discount rate of 12%. Using this rate, we can calculate the present value of the free cash flows as follows:DCF = (10 / 1.12^1) + (14 / 1.12^2) + (18 / 1.12^3) + (22 / 1.12^4) + (26 / 1.12^5) = IDR 97,326,025,715c. If you need additional IDR 1 billion to expand your business, how many shares of the establishment you need to sale (assuming each share is priced for IDR 1 million?)To raise IDR 1 billion, we need to sell IDR 1 million worth of shares. The number of shares we need to sell is calculated as follows:Number of shares = Amount to be raised / Price per share = IDR 1,000,000,000 / IDR 1,000,000 = 1,000 sharesTherefore, we need to sell 1,000 shares to raise IDR 1 billion.
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snooard Production Report, Weighted Average Mino Inc. manufactures chocolate syrup in three departments: Cooking, Mixding, and Bottling. Hino uses the weighted average method. The following are cost and production data for the cooking department for April (Note: Assume that units are measured in gallons.): Production: Units in process, April 1, 60% complete 29,000 Units completed and transferred out 46,000 Units in process, April 30, 20% complete 10,500 Costs: WIP, April 1 $90,600 Costs added during April 265,340 Required: Prepare a production report for the cooking department. Round cost per equivalent unit value to the nearest cent and use rounded value in intermediate calculations. Mino Inc. Cooking Department Production Report For the Month of April (Weighted Average Method) Unit Information Units Physical flow Units to account for: Assignment/takeAssignmentMain Physical flow: Units to account for: Units in beginning work in process Units started Total units to account for Units accounted for: Units completed Units in ending work in process Total units accounted for Units completed Units in ending work in process Total equivalent units Costs to account for: Costs in beginning work in process Costs added by department Total costs to account for sardi Equivalent units: Poker otakenssig Cost Information Units 29,000 Units 46.000 Units 46.000 Dollars 90.400 265340 355.940 Next Equivalent units: Units completed Units in ending work in process Total equivalent units Costs to account for: Costs in beginning work in process Costs added by department Total costs to account for Cost per equivalent unit Costs accounted for: Goods transferred out Goods in ending work in process Total costs accounted for Check My Work Cost Information Units 46.000 Dollars 90.600 265340 355.940 Ending Transferred Work in Total -Out Process NEXT
Total costs accounted for work in process is $356,340
The above is the production report for the cooking department for April.
Mino Inc. Cooking Department Production Report For the Month of April (Weighted Average Method)
Unit Information Units Physical flow units to account for:
Equivalent units = Units completed + (Units in ending work in process * % of completion)
= 46,000 + (10,500 * 60%)
= 52,300
Cost per equivalent unit = Costs to account for / Equivalent units
= $355,940 / 52,300
= $6.81
Goods in ending work in process = Units in ending work in process * Cost per equivalent unit
= (10,500 * 20%) * $6.81
= $43,080
Goods transferred out = Units completed * Cost per equivalent unit
= 46,000 * $6.81
= $313,260
Total costs accounted for = Goods transferred out + Goods in ending work in process
= $313,260 + $43,080
= $356,340
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An inventory decision rule states "when the inventory level goes down to 14 gearboxes, 100 gearboxes will be ordered." Which of the following statements is true? One hundred is the reorder point, and 14 is the order quantity. Fourteen is the reorder point, and 100 is the order quantity. The number 100 is a function of demand during lead time. Fourteen is the safety stock, and 100 is the reorder point. None
The statement "when the inventory level goes down to 14 gearboxes, 100 gearboxes will be ordered" means that 14 is the reorder point, and 100 is the order quantity.
A reorder point is the inventory level at which an order needs to be placed to replenish the stock. In this case, the inventory level is considered too low when it reaches 14 gearboxes, which triggers the placement of an order of 100 gearboxes.
Therefore, 14 is the reorder point. The order quantity is the amount of inventory to be ordered when the reorder point is reached. Here, the order quantity is 100 gearboxes.
This decision rule assumes that the demand during the lead time (the time it takes to receive the ordered inventory) is constant and equal to 100 gearboxes. In addition to the reorder point and order quantity, safety stock is another inventory control parameter.
Safety stock is additional inventory held to ensure that unexpected demand during lead time does not lead to stockout.
However, the statement does not provide information about safety stock.
Therefore, none of the options that identify 100 or 14 as safety stock and reorder point, respectively, or the option that identifies 100 as a function of demand during lead time are correct.
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Complete the sentence: The Venezuelan government created multiple (blank) Group of answer choices
Central Banks
Exchange rates
Poverty relief agencies
Electric companies
The Venezuelan government created multiple poverty relief agencies.In 1998, Hugo Chavez became the President of Venezuela.
Chavez established a socialist government, nationalizing most of the economy and distributing wealth to the people. He established several programs and organizations to assist in poverty reduction, which is a major issue in Venezuela. The Chavez administration established multiple poverty relief agencies to address this problem. The Community Development Fund, the Urban Land Committees, and the National Women’s Institute are among them.
The Community Development Fund, established in 2002, has given thousands of low-income families access to health care, education, and other basic services. The Urban Land Committees, created in 2001, help the people by providing housing and land. These programs have been critical in improving the living conditions of the Venezuelan poor.The National Women’s Institute was founded to assist women in participating in the workforce and to address problems of gender inequality.
The institute has played a critical role in empowering women by providing education and training programs, as well as by advocating for women’s rights. These programs have been critical in improving the standard of living for women in Venezuela.In conclusion, the Venezuelan government created multiple poverty relief agencies to address the issue of poverty in the country. These organizations have played an essential role in improving the quality of life for the Venezuelan poor, especially in the areas of healthcare, housing, and women’s rights.
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Pacifico Company, a U.S.-based importer of beer and wine, purchased 2,000 cases of Oktoberfest-style beer from a German supplier for 600.000 euros. Relevant U.S. dollar exchange rates for the euro are as follows: Date August 15 September 30 Spot Bate $1.50 Forward Rate to October 15 $1.56 Call Option Premium for October 15. (strike price $1.50) $0.05 0.06 N/A 1.55 1.59 October 15 1.58 1.58 (spot) The company closes its books and prepares third-quarter financial statements on September 30. a. Assume that the beer arrived on August 15, and the company made payment on October 15. There was no attempt to hedge the exposure to foreign exchange risk. Prepare journal entries to account for this import purchase. b. Assume that the beer arrived on August 15, and the company made payment on October 15. On August 15, the company entered into a two-month forward contract to purchase 600.000 euros. The company designated the forward contract as a cash flow hedge of a foreign currency payable. Forward points are excluded in assessing hedge effectiveness and amortized to net income using a straight-line method on a monthly basis. Prepare journal entries to account for the import purchase and foreign currency forward contract. c. Assume that the company ordered the beer on August 15. The beer arrived and the company paid for it on October 15. On August 15, the company entered into a two-month forward contract to purchase 600,000 euros. The company designated the forward contract as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the forward rate. Forward points are not excluded in assessing hedge effectiveness. Prepare journal entries to account for the foreign currency forward contract, foreign currency firm commitment, and import purchase. d. Assume that the company ordered the beer on August 15. The beer arrived and the company paid for it on October 15, On August 15, the company purchased a two-month call option on 600.000 euros. The company designated the option as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the spot rate. The time value of the option is excluded from the assessment of hedge effectiveness, and the change in time value is recognized in net hết ti tại thành 100 101 tháng Hà hợp thành thực hiện nay tin 2000000 thị 100 101 p d. Assume that the company ordered the beer on August 15. The beer arrived and the company paid for it on October 15. On August 15, the company purchased a two-month call option on 600.000 euros. The company designated the option as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the spot rate. The time value of the option is excluded from the assessment of hedge effectiveness, and the change in time value is recognized in net Income over the life of the option. Prepare journal entries to account for the foreign currency option, foreign currency firm commitment, and import purchase. e. Assume that, on August 15, the company forecasted the purchase of beer on October 15. On August 15, the company acquired a two-month call option on 600.000 euros. The company designated the option as a cash value hedge of a forecasted foreign currency transaction. The time value of the option is excluded from the assessment of hedge effectiveness, and the change in time value is recognized in net income over the life of the option. Prepare journal entries to account for the foreign currency option and import purchase.
a. The journal entries to account for import purchase are as follows: Date Account Title a.
b. The journal entries to account for import purchase and foreign currency forward contract are as follows:DateAccount Title.
Therefore, a forward contract is debited, and cash is credited with $900,000. On September 30, the company settles the payable. c. The gain on the forward contract is calculated and recognized. Accounts payable is credited, and cash is debited with the amount paid.
d. The journal entries to account for foreign currency option, foreign currency firm commitment, and import purchase are as follows: Date Account Title. The gain on the option is calculated as [$600,000 x ($1.58 - $1.55)/euro] x 100,000 euros = $45,000.)Explanation: On August 15, the company purchased a call option to purchase 600,000 euros. Therefore, the option is debited, and cash is credited with $30,000. On September 30, the company settles the payable. The gain on the option is calculated and recognized. Accounts payable is credited, and cash is debited with the amount.
The cost of inventory is calculated as [$600,000 x $1.55/euro = $930,000.]Explanation: On August 15, the company purchased a call option to purchase 600,000 euros. Therefore, the option is debited, and cash is credited with $30,000. On October 15, the company purchases inventory and settles the payable. The cost of inventory is calculated and recognized. Inventory is debited, the option is credited with $30,000, and accounts payable is credited with $900,000.
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BE HE 1 un 1054 am v V V A > > > > 5553 Cash At R Supplies font A P D' Adverthing Ex and & Exp KOMBI > > V Bramble Security Company provides security services. Selected transactions for Bramble are as follows. Oct. 1 Invested $61,000 cash in the business. 2 Hired part-time security consultant. Salary will be $3,000 per month. First day of work will be October 15. Paid one month of rent for building for $3,000. 4 7 Purchased equipment for $15,000, paying $3,200 cash and the balance on account. 8 Paid $500 for advertising. 10 Received bill for equipment repair cost of $350. Provided security services for event for $3,700 on account. Purchased supplies for $420 on account. Paid balance due from October 7 purchase of equipment. Received and paid utility bill for $128. Received payment from customer for October 12 services performed. Paid employee salaries and wages of $4,500.
Bramble Security Company had net cash outflows of $23,800 and an ending balance of $37,200.The company invested $61,000 cash in the business, which increased the total equity of the company.
Bramble Security Company is a private security company that offers security services. In this case, it invested $61,000 cash in the business on October 1, and on October 2, it hired a part-time security consultant. The consultant's salary will be $3,000 per month, and the first day of work will be on October 15.
Bramble paid one month of rent for the building for $3,000. On October 4, it purchased equipment for $15,000, paying $3,200 cash and the remaining balance on account.On October 7, Bramble Security Company paid $500 for advertising. Later on, on October 10, the company received a bill for equipment repair that amounted to $350. It provided security services for an event for $3,700 on account and purchased supplies for $420 on account.On October 12, Bramble received payment from the customer for the services performed.
Lastly, on October 31, Bramble paid employee salaries and wages of $4,500. The sum of all the transactions amounts to $91,200 in October.Generally, Bramble Security Company had cash outflows of $26,500, which are as follows: Hired part-time security consultant, paid for rent, paid for advertising, paid for equipment, paid for repairs, purchased supplies, and paid employee salaries. The company had cash inflows of $3,700 and $61,000, which are for providing security services and investment respectively.
Therefore, Bramble Security Company had net cash outflows of $23,800 ($26,500 – $3,700) and an ending balance of $37,200 ($61,000 – $23,800).The company invested $61,000 cash in the business, which increased the total equity of the company.
The total liabilities of the company also increased when it purchased equipment on account, received supplies on account, and paid salaries and wages. The net income of the company in October is unknown since the total revenues are not provided.
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a. which 105/8 questions project method would you use for non-repetitive projects where activity times are not known with certainty? b. If the ordering cost of a product is reduced to one-fourth, what will be the impact on the EOQ? c. If the severity, occurrence and detectability scores of a particular failure mode are 3, 7 and 4 respectively, what is the RPN of this failure mode? d. Creating a project charter is part of which stage in the six sigma project? e. For JIT to be practically implementable, what should be the nature of demand? f. If the standard deviation of the project duration is 4 weeks, and mean time to complete the project is expected to be 40 weeks, what is the probability that the project would be completed in 32 weeks? g. If the confidence level required to fulfil the demand increases from 90% to 95%, what would be the % increase in the safety stock? h. Which scheduling rule is expected to give lower work in process? i. Which scheduling rule is expected to give lowest average lateness of jobs? j. Which are the two most prominent departments involved in S&OP meetings in an organization? k. Mention any two inputs for generation of MRP 1. Among the 8 wastes of lean, which is the 8th waste that has been recently added to the origial 7 wastes?
a. The Monte Carlo Simulation method is used for non-repetitive projects where activity times are not known with certainty.
b. The EOQ formula is as follows: EOQ = √((2DS)/H)Where D is the demand, S is the setup or ordering cost and H is the holding cost.
c. RPN of a failure mode is calculated as follows:RPN = Severity x Occurrence x Detectability= 3 x 7 x 4= 84d. Creating a project charter is a part of the Define stage in the Six Sigma project.e. For JIT to be practically implementable, the nature of demand should be relatively stable and predictable.
f. The Z-value for the project is calculated as follows:Z = (32 - 40) / 4 = -2The probability of the project being completed in 32 weeks can be determined from the Z-value table, which is 0.0228 or 2.28%.g. Safety Stock = (Z-score) x (Standard Deviation of Lead Time) x (Average Demand per day)For 90% confidence level, Z-value is 1.28For 95% confidence level, Z-value is 1.65
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1) [Difference-in-Difference] The government has designed a program to train low-skilled workers in the middle of an economic recession. The government selected randomly the workers that will be under the training program (this is known as the treated group). The non-treated workers are considered the control group. The treatment lasted 1 month, and it consisted of teaching computer programs (now called apps), mainly MS Office. The wages of both treatment and control groups were observed during a year (12 months) after the treatment, and a year (12 months) before the treatment. You are shown the following regression with the results below (standard errors of the estimators in parenthesis below equation): - wageSit = 750 + 80.60 x treatit – 20.55 x postit + 230.90 x treatit x postit (50.4) (60.80) (9.50) (40.50) Where wages is monthly wages, in dollars. treat is a dummy variable that takes value 1 if the low-skilled worker was part of the government training program, zero if he/she was not selected. post is a dummy variable that takes value 1 if time period is after the program was executed, 0 if the time period is before the program was executed (consider the month of training part of post). i) Explain which estimators are statistically different from zero, at 95% confidence interval. ii) Explain, providing rationale and details, if the program was successful in generating higher wages for treatment people in comparison to the control group. iii) Explain in detail why you thing the estimator of the dummy variable post is negative, -20.55.
Difference-in-Difference (DiD) is a technique used in econometrics to determine the causal effect of a policy intervention, which in this case is the government's program to train low-skilled workers in the middle of an economic recession.
The treatment group comprises low-skilled workers who received training, while the control group comprises low-skilled workers who did not receive training. DiD is calculated by taking the difference between the treatment and control groups' outcomes before and after the intervention.
wageSit = 750 + 80.60 x treatit – 20.55 x postit + 230.90 x treatit x postit (50.4) (60.80) (9.50) (40.50)The variables in this equation are defined as follows:- wageSit represents the monthly wages for low-skilled workers, and it is in dollars.- treatit is a dummy variable that takes a value of 1 if the low-skilled worker is part of the government's training program, and 0 if he/she is not selected.- postit is a dummy variable that takes a value of 1 if the time period is after the program was executed, and 0 if the time period is before the program was executed.- 80.60 is the estimator of the treatment variable treatit, and it is statistically different from zero at the 95% confidence interval because its p-value is less than 0.05.
the government program has generated higher wages for treatment people than for control people.- -20.55 is the estimator of the dummy variable postit, and it is statistically different from zero at the 95% confidence interval because its p-value is less than 0.05. The estimator is negative because it indicates that the average wages of workers in the control group are higher than those in the treatment group before the intervention.
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Paper Corp. purchased 70% of the outstanding shares of Sand Ltd. on January 1, Year 2, at a cost of $87,850. Paper has always used the equity method to account for its investments. On January 1, Year 2, Sand had common shares of $50,000 and retained earnings of $26,600, and fair values were equal to carrying amounts for all its net assets, except inventory (fair value was $4,400 less than carrying amount) and equipment (fair value was $13,800 greater than carrying amount). The equipment, which is used for research, had an estimated remaining life of six years on January 1, Year 2. The following are the financial statements of Paper Corp. and its subsidiary Sand Ltd. as at December 31, Year 5: BALANCE SHEETS At December 31, Year 5 Paper Sand Cash $ – $ 18,000 Accounts receivable 40,000 29,900 Note receivable – 34,300 Inventory 78,000 48,000 Equipment (net) 264,000 80,000 Land 179,000 38,000 Investment in Sand 130,389 – $ 691,389 $ 248,200 Bank indebtedness $ 142,320 $ – Accounts payable 66,000 58,200 Notes payable 34,300 – Common shares 150,000 50,000 Retained earnings 298,769 140,000 $ 691,389 $ 248,200 INCOME STATEMENTS For the year ended December 31, Year 5 Paper Sand Sales $ 830,000 $ 324,300 Management fee revenue 20,400 – Equity method income from Sand 874 – Interest income – 3,430 Gain on sale of land – 17,300 851,274 345,030 Cost of sales 498,000 216,200 Research and development expenses 44,000 15,200 Interest expense 16,400 – Miscellaneous expenses 114,000 28,000 Income taxes 71,780 34,252 744,180 293,652 Net income $ 107,094 $ 51,378 Additional Information During Year 5, Sand made a cash payment of $1,700 per month to Paper for management fees, which is included in Sand’s Miscellaneous expenses. During Year 5, Paper made intercompany sales of $25,000 to Sand. The December 31, Year 5, inventory of Sand contained goods purchased from Paper amounting to $7,500. These sales had a gross profit of 35%. On April 1, Year 5, Paper acquired land from Sand for $34,300. This land had been recorded on Sand’s books at a carrying amount of $17,000. Paper paid for the land by signing a $34,300 note payable to Sand, bearing yearly interest at 10%. Interest for Year 5 was paid by Paper in cash on December 31, Year 5. This land was still being held by Paper on December 31, Year 5. The value of consolidated goodwill remained unchanged from January 1, Year 2, to July Year 5. On July 1, Year 5, a valuation was performed, indicating that the recoverable amount of consolidated goodwill was $4,300. During the year ended December 31, Year 5, Paper paid dividends of $80,000 and Sand paid dividends of $20,000. Sand and Paper pay taxes at a 40% rate. Assume that none of the gains or losses were capital gains or losses. Required: (a) Prepare, in good form, a calculation of goodwill and any undepleted acquisition differential as of December 31, Year 5. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit $ sign in your response.) Balance Changes to Balance January 1, Year 2 Year 2-4 Year 5 Dec. 31, Year 5 Inventory $ $ $ $ Equipment Goodwill $ $ $ $ (b) Prepare Paper’s consolidated income statement for the year ended December 31, Year 5, with expenses classified by function. (Round your answer to nearest whole dollar.) (c) Calculate the following balances that would appear on Paper’s consolidated balance sheet as at December 31, Year 5: (Leave no cells blank - be certain to enter "0" wherever required. Omit $ sign in your response.) (i) Inventory Inventory $ (ii) Land Land $ (iii) Notes payable Notes payable $ (iv) Non-controlling interest Non-controlling interest $ (v) Common shares Common shares $ (d) Assume that an independent business valuator valued the non-controlling interest at $33,600 at the date of acquisition. Calculate goodwill impairment loss and profit attributable to non-controlling interest for the year ended December 31, Year 5. (Omit $ sign in your response.) Goodwill impairment loss $ Profit attributable to non-controlling interest $
Profit attributable to non-controlling interest $9,457
How to solve for the Profit attributable to non-controlling interest(a) Calculation of goodwill and undepleted acquisition differential as of December 31, Year 5:
Balance Changes to Balance
January 1, Year 2
Year 2-4
Year 5
Dec. 31, Year 5
Inventory
$0
$0
$0
$0
Equipment
$0
$0
$0
$0
Goodwill
$70,389
$0
$0
$70,389
(b) Paper's consolidated income statement for the year ended December 31, Year 5, with expenses classified by function:
Paper's Consolidated Income Statement
For the Year Ended December 31, Year 5
Sales
$1,154,300
Cost of sales
$714,200
Research and development expenses
$59,200
Management fee revenue
$20,400
Interest income
$3,430
Gain on sale of land
$17,300
Interest expense
$16,400
Miscellaneous expenses
$142,000
Income taxes (40%)
$42,911
Net income attributable to controlling interest
$243,619
Net income attributable to non-controlling interest
$9,457
Consolidated net income
$253,076
(c) Balances on Paper's consolidated balance sheet as at December 31, Year 5:
(i) Inventory
Inventory
$55,500
(ii) Land
Land
$212,700
(iii) Notes payable
Notes payable
$0
(iv) Non-controlling interest
Non-controlling interest
$33,600
(v) Common shares
Common shares
$150,000
(d) Calculation of goodwill impairment loss and profit attributable to non-controlling interest for the year ended December 31, Year 5:
Goodwill impairment loss
$0 (since the recoverable amount of consolidated goodwill exceeds the carrying amount)
Profit attributable to non-controlling interest
$9,457
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The Cable TV Co., an accrual basis taxpayer, allows its customers to pay by the month ($10 each month), by the year ($110 per year), or two years in advance ($200). In December this year, the company collected the following amounts applicable to future services:
January next year services (monthly contracts) $11,000
January - December next year Services (annual contracts) $44,000
January - December Services for the next two years $16,000
The income from the above that must be reported as gross income for this year is:
$55,000.
$71,000.
$16,000.
$27,000.
None of the above
Therefore, the total income generated this year would be: $11,000 + $3,666.67 + $1,333.34 = $16,000.The correct answer is option A, $55,000.
The income from the above that must be reported as gross income for this year is $55,000.Explanation:Since this is an accrual-based taxpayer, all income generated this year, irrespective of the time when the customer is expected to receive the service, is taxable this year. For January next year services (monthly contracts), the Cable TV Co. collected $11,000. Therefore, the monthly income generated this year would be $11,000/12 = $916.67.For January - December next year Services (annual contracts), the Cable TV Co. collected $44,000. Therefore, the annual income generated this year would be $44,000/12 = $3,666.67.
For January - December Services for the next two years, the Cable TV Co. collected $16,000. Therefore, the biennial income generated this year would be $16,000/24 = $666.67.The income generated this year from all contracts would be:
Monthly contracts: 12 x $916.67 = $11,000Annual contracts: 1 x $3,666.67 = $3,666.67
Biennial contracts: 2 x $666.67 = $1,333.34.
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Build a budget for your project. For the budget, use both the Cost Estimate and Cost Baseline templates in the Important Documents, and review Schwalbe pp. 175 -180 about their use. Note that the first step is the estimation. Your WBS should be pulled into the template and they you estimate hours for labor and costs for non-labor. The Cost Baseline then distributes that estimate across the estimated months of the project. HINT: The total should be the SAME for both the Estimate and the Baseline when complete!!
Part 2
Time to build your Project Schedule! Using the knowledge you gained from the LinkedIn Learning courses you did on MS Project, and information from your professor, build a schedule for your fictional project.
Don't forget to auto-schedule, assign resources, and build in predecessors. Let the software determine your dates!
Part 1: Budget
To create a budget for your project, follow these steps:
Define the Work Breakdown Structure (WBS): Break down your project into smaller tasks or deliverables. This will serve as the foundation for estimating costs and creating the budget.
Estimate labor hours: Estimate the number of hours required for each task or deliverable. Consider the expertise and skill level of the resources involved.
Estimate non-labor costs: Identify and estimate the costs associated with materials, equipment, software, licenses, travel, and any other expenses required for the project.
Calculate the total estimate: Sum up the estimated labor hours and non-labor costs to determine the total project estimate.
Create a Cost Baseline: Distribute the total estimate across the estimated months of the project. This will help you track and compare actual costs against the baseline throughout the project's duration.
Part 2: Project Schedule
To create a project schedule using MS Project or similar software, follow these steps:
Define the project tasks: Enter the tasks or deliverables identified in the WBS into the project management software. Include task names, durations, and dependencies (predecessors).
Assign resources: Assign the appropriate resources to each task. This can include team members, equipment, or any other required resources.
Set task dependencies: Define the relationships between tasks. Determine which tasks need to be completed before others can start (predecessors) and set these dependencies within the software.
Auto-schedule: Use the software's auto-scheduling feature to allow the software to determine the start and end dates for each task based on the defined dependencies and resource availability.
Review and adjust: Review the schedule for any conflicts, resource overloads, or constraints. Make necessary adjustments to optimize the schedule and ensure realistic timelines.
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A common problem that many drivers encounter is a car that will not start. In practice, we may create a fishbone diagram to assist in diagnosing the potential causes of this problem. List five or more possible causes that you will show on the fishbone diagram. Note: only a list of possible causes is required. No need to draw a fishbone diagram here.
issues: Dead or weak battery, loose or corroded battery connections, faulty alternator not charging the battery, or a drained battery due to leaving lights or accessories on.
2. Fuel system problems: Empty or low fuel tank, clogged fuel filter, faulty fuel pump, or issues with fuel injectors preventing proper fuel delivery to the engine.
3. Ignition system failures: Defective ignition switch, worn-out spark plugs, damaged ignition coil, or faulty ignition control module.
4. Starter motor or solenoid issues: A faulty starter motor that fails to engage or turn over the engine, or a defective solenoid that prevents power from reaching the starter motor.
5. Electrical system malfunctions: Problems with fuses, relays, wiring, or connections that can disrupt the electrical flow to critical components like the starter motor, fuel pump, or ignition system.
These are just a few possible causes, and there can be other factors contributing to a car not starting, such as a malfunctioning immobilizer system, engine sensor failures, or even issues with the computerized engine management system. A fishbone diagram would allow for a more comprehensive exploration of potential causes and their relationships.
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The Heating Division of Kobe International produces a heating element that it sells to its customers for $40 per unit. Its variable cost per unit is $23, and its fixed cost per unit is $10. Top management of Kobie International would like the Heating Division to transfer 15.200 heating units to another division within the company at a price of $31. The Heating Division is operating at full capacity. What is the minimum transfer price that the Heating Division should accept Minimum transfer price 5
The minimum transfer price that the Heating Division should accept is $23 per unit.
Minimum transfer price:
The minimum transfer price is determined by the variable cost per unit of the Heating Division, which is $23. This cost represents the direct expenses incurred in producing each unit of the heating element.
Since the Heating Division is operating at full capacity, it should not accept a transfer price lower than its variable cost per unit. Accepting a transfer price lower than the variable cost would result in a loss for the division, as it would not be covering its direct expenses.
Therefore, the minimum transfer price that the Heating Division should accept is $23 per unit, which ensures that it recovers its variable costs and avoids operating at a loss.
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Which of the following audit procedures is most effective in determining the completeness of recorded assets?
Assessing overall asset audit risk.
Tracing from source documents to entries in the accounting records.
Performing cyclical procedures.
Vouching transactions.
The correct answer is: Tracing from source documents to entries in the accounting records.
Tracing from source documents to entries in the accounting records is the most effective audit procedure for determining the completeness of recorded assets. This procedure involves examining the original source documents, such as invoices, receipts, and purchase orders, and then verifying that the corresponding entries have been properly recorded in the accounting records.
By tracing from the source documents to the accounting records, auditors can ensure that all assets have been appropriately captured and recorded. This procedure helps identify any missing or omitted assets that should have been recorded, thus assessing the completeness of the recorded assets.
Assessing overall asset audit risk is a broader evaluation of the risk associated with auditing assets and does not directly determine completeness. Performing cyclical procedures involves selecting a sample of assets for audit testing based on a specific cycle and may not cover all assets comprehensively. Vouching transactions is a procedure to verify the accuracy and validity of recorded transactions but may not specifically focus on completeness.
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Now let's focus on the COVID-19 recession. Oil prices started falling in December 2019, but dropped significantly from February 2020 to April 2020, by almost 60%. Over the same time, household consumption spending fell by almost 20%, and the unemployment rate increased from 3.5% to 14.7%. Which of the following statements is a correct interpretation of these effects?
Choose one:
A. The negative effect of businesses closing due to the COVID-19 pandemic more than offset the positive effect of lower oil prices.
B. The change in oil prices caused the SRAS to shift to the left, which led to less spending and higher unemployment.
C. Since oil prices fell, consumers had more money than before, so aggregate demand increased and shifted to the right
B. The change in oil prices caused the SRAS to shift to the left, which led to less spending and higher unemployment.
This statement provides a correct interpretation of the effects described. The significant drop in oil prices can have a substantial impact on the economy, particularly in oil-dependent industries and regions. The decrease in oil prices can lead to a decrease in production costs for businesses in sectors such as transportation and manufacturing, which, in turn, can reduce prices and increase overall output.
However, in the context of the COVID-19 recession, the drop in oil prices coincided with a broader economic downturn caused by the pandemic. The decrease in household consumption spending and the rise in unemployment were primarily driven by the pandemic-induced business closures, reduced consumer demand, and supply chain disruptions rather than the change in oil prices alone.
The decrease in consumption spending and the increase in unemployment suggest a contraction in aggregate demand. The drop in oil prices, while it may have provided some relief in terms of lower production costs for certain industries, was not sufficient to offset the overall negative impact of the pandemic on economic activity. Therefore, the change in oil prices is more likely to be a secondary factor influencing the recession, with the primary driver being the pandemic itself.
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Pretend that you are the CEO of Milliford Labs. While the company has been known for its innovation and producing multiple new products annually, you're concerned because only two new products were developed in the past year when they used to do 6 a year (not due to Covid).
As the CEO, you want to turn this around. Consider how many new products could actually be developed in a year. If they only developed a couple (2) last year, then how many could they actually develop in new year? Be realistic.
The purpose is to inspire and encourage people to develop more new products. You can make up the details as you communicate an inspiring change speech to kick off the company retreat and outline a plan (note: type of company is not important). Use the executive coach’s advice, include a change management model from module 3 readings and Duarte’s principles of spellbinding presentations.
A positive message and tone are the best way to encourage people to generate new product ideas.
Company has a retreat scheduled. Consider how CEO might use retreat to kick-off initiative, generate excited and gather ideas. Incorporate Module 3 reading on change models into paper
I would deliver an inspiring change speech to address the decline in new product development and set realistic expectations.
During the company retreat, I would start by acknowledging the recent decline in new product development and assuring the team that I am committed to turning things around. I would use a change management model, such as the ADKAR (Awareness, Desire, Knowledge, Ability, Reinforcement) model, to guide my speech. Firstly, I would create awareness by highlighting the current situation and its impact on our competitiveness and growth. This would help the team understand the urgency for change.
Next, I would focus on building desire by conveying my belief in the team's abilities and their potential to achieve greater success. I would emphasize the importance of innovation and the positive impact it can have on the company, its customers, and the industry as a whole. By highlighting success stories from the past and how they have shaped our reputation, I would ignite a sense of pride and excitement among the employees.
To enhance knowledge and ability, I would encourage cross-functional collaboration and knowledge sharing. I would emphasize the importance of leveraging our diverse skills and perspectives to generate a wide range of new product ideas. By creating an environment that fosters creativity and encourages experimentation, we can empower our employees to think outside the box and contribute their unique insights.
Finally, I would reinforce the desired behaviors and outcomes by outlining a clear plan of action. This plan would include dedicated time and resources for new product development, regular progress tracking, and recognition for innovative contributions. By setting realistic goals and milestones, we can gradually increase our product output while maintaining high quality and customer satisfaction.
Incorporating Duarte's principles of spellbinding presentations, I would aim to inspire and engage the team throughout my speech. I would use storytelling techniques, compelling visuals, and authentic communication to create an emotional connection with the audience. By presenting a vision of a future where Milliford Labs is once again known for its innovation and impact, I would instill a sense of purpose and motivation in each employee.
Overall, my goal as the CEO would be to use the company retreat as a platform to inspire, encourage, and gather new product ideas. By incorporating a change management model and Duarte's principles of spellbinding presentations, I would create a positive and supportive environment where employees feel empowered to contribute their best and collectively drive the company towards greater innovation and success.
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What is the difference between civil liberties and civil rights, and name the significant constitutional amendments, Supreme Court cases, interest groups and social movements historically involved in each of these issues. Explain how the Democratic party has factored in or still negotiates the political importance of both, with examples.
Civil liberties refer to individual freedoms and protections from government intervention, while civil rights focus on equal treatment and opportunities for all individuals in society.
Constitutional amendments such as the First, Fourth, and Fourteenth amendments, and Supreme Court cases like Brown v. Board of Education and Roe v. Wade have played significant roles in both issues.
Interest groups and social movements such as the American Civil Liberties Union and the Civil Rights Movement have also advocated for these issues.
Both civil liberties and civil rights have been important issues in American politics throughout history. Civil liberties include individual freedoms such as freedom of speech, religion, and press, protections against unreasonable search and seizure, and the right to a fair trial.
Constitutional amendments like the First Amendment, which protects free speech and religion, the Fourth Amendment, which prohibits unreasonable searches and seizures, and the Fourteenth Amendment, which guarantees equal protection under the law, have all played significant roles in protecting civil liberties.
Civil rights, on the other hand, focus on ensuring equal treatment and opportunities for all individuals in society.
Examples include the right to vote regardless of race or gender, equal access to education and employment, and protection from discrimination. Supreme Court cases like Brown v. Board of Education, which declared segregation in public schools unconstitutional, and Roe v. Wade, which affirmed the right to abortion, have been pivotal in advancing civil rights in the US.
Interest groups and social movements have also played significant roles in advocating for both civil liberties and civil rights.
The American Civil Liberties Union (ACLU) is a major organization that has defended civil liberties since its founding in 1920.
The Civil Rights Movement of the 1950s and 60s, led by figures like Martin Luther King Jr., resulted in significant progress towards equal treatment and access for African Americans.
The Democratic Party has historically been involved in both civil liberties and civil rights issues. In recent years, they have taken stances on issues like immigration reform, criminal justice reform, and LGBTQ+ rights to support civil liberties, while advocating for policies like affirmative action and voting rights legislation to advance civil rights
. For example, the Democratic Party has supported the Dream Act, which would provide a pathway to citizenship for undocumented immigrants brought to the US as children, and the passage of the Voting Rights Advancement Act, which would increase federal protections against voter suppression tactics.
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