The annual operating cash flow for the best-case scenario is $79,100.
To calculate the annual operating cash flow for the best-case scenario, we need to consider the sales, costs, tax rate, and depreciation.
Sales: $290,000 (given)
Costs: $197,000 (given)
Since we are considering the best-case scenario, we will assume that both sales and costs are at the higher end of the range, which is +10% of the given values.
Best-case scenario sales: $290,000 + ($290,000 * 0.10) = $319,000
Best-case scenario costs: $197,000 + ($197,000 * 0.10) = $216,700
Operating income before taxes: Best-case scenario sales - Best-case scenario costs = $319,000 - $216,700 = $102,300
Tax rate: 35% (given)
Taxes: Operating income before taxes * Tax rate = $102,300 * 0.35 = $35,805
Operating income after taxes: Operating income before taxes - Taxes = $102,300 - $35,805 = $66,495
Depreciation: Since the equipment cost is $535,000 and the project has a life of 9 years, the annual depreciation expense is $535,000 / 9 = $59,444.
Annual operating cash flow: Operating income after taxes + Depreciation = $66,495 + $59,444 = $125,939
However, since we are calculating the best-case scenario, we need to account for the tax benefit from depreciation. The tax benefit is the depreciation expense multiplied by the tax rate.
Tax benefit from depreciation: Depreciation * Tax rate = $59,444 * 0.35 = $20,805
Adjusted annual operating cash flow for the best-case scenario: Annual operating cash flow - Tax benefit from depreciation = $125,939 - $20,805 = $105,134
The annual operating cash flow for the best-case scenario is $105,134.
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Below is the need for change:
Economic Forces: Increasing supply costs, increasing travel costs, revenues are down, intense global competition and the need for competitive pay.
Socio-Cultural Forces: The need for new technologically savvy clients, the need to shift to online training and changes in social mobility.
Political, Government & Legal Forces: There has been an increase in city taxes, an increase in political unrest around the world.
Technological Forces: Need for online training as it is faster, need in learning technology software that is available from their competitors.
Ecological Forces: The need to sustain economic growth and global competition.
Create an overview of recommendations for communicating the change to change recipients.
Change is a crucial aspect of life that is inevitable in every aspect of life. There are various factors that may cause an organization to consider a change, including economic forces, socio-cultural forces, political and legal forces, technological forces, and ecological forces.
Effective communication is a critical component of a successful change initiative. As such, below are some recommendations for communicating the change to change recipients.
1. Involve the recipients: Change is hard to deal with, and it can be met with resistance. Therefore, it is essential to involve the change recipients in the change process. This involvement will allow the recipients to feel like they have a say in the changes, making them more comfortable with the transition.
2. Establish a clear timeline: When communicating the change, it is essential to provide a timeline for the change process. The timeline will allow the recipients to know what to expect, making the transition easier.
3. Clarify the benefits: It is crucial to communicate the benefits of the change. The benefits could be more productivity, better salaries, or an improved work environment. Communicating the benefits will help the recipients see the value of the change and reduce the resistance.
4. Provide training and resources: Change may involve learning new skills or processes. Therefore, it is crucial to provide adequate training and resources to help the recipients through the transition. This training will enable the recipients to feel comfortable with the change and reduce their stress levels.
5. Listen to feedback: Lastly, it is essential to listen to feedback from the recipients. The feedback will help you identify areas where you need to improve the change process. It will also show the recipients that you value their opinions and that you are willing to work with them.
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Let the market demand for gin in gallons be: Q
D
=5000−40P; and let the market supply be: Q
s
=10P. 5a. Calculate the equilibrium price and quantity. 5b. Consider an excise tax of $1 per gallon paid by sellers; calculate the new quantity traded and the tax revenue from the excise tax. What is the "sticker price" for gin paid by consumers? What is the after-tax price for gin that is received by sellers? Calculate the deadweight loss from the tax. 5c. Instead, now consider an excise tax of $1 per gallon paid by buyers of gin; calculate the quantity traded and the tax revenue from this excise tax. What is the "sticker price" for gin received by sellers? What is the after-tax price for gin paid by buyers? Calculate the deadweight loss from the tax.
5a. To find the equilibrium price and quantity, we need to set the market demand equal to the market supply:
5000 - 40P = 10P
Combine like terms:
5000 = 50P
Divide both sides by 50:
P = 100
Substitute the equilibrium price back into either the demand or supply equation to find the equilibrium quantity:
Q = 5000 - 40(100)
Q = 5000 - 4000
Q = 1000
To calculate the deadweight loss from the tax, we need to find the difference between the quantity traded without the tax (1000 gallons) and the quantity traded with the tax (990 gallons):
5c. With an excise tax of $1 per gallon paid by buyers, the new quantity traded will be determined by the new demand equation:
Qd = 5000 - 40(P + Tax)
Qd = 5000 - 40(100 + 1)
Qd = 5000 - 40(101)
Qd = 5000 - 4040
Qd = 960
The tax revenue from this excise tax can be calculated by multiplying the tax amount by the new quantity traded:
Tax Revenue = Tax * Quantity Traded
Tax Revenue = $1 * 960
Tax Revenue = $960
The "sticker price" for gin received by sellers will be:
Sticker price = After-tax price + Tax
Sticker price = $100 + $1
Sticker price = $101
The after-tax price for gin paid by buyers will be the same as the sticker price, which is $101.
To calculate the deadweight loss from the tax, we need to find the difference between the quantity traded without the tax (1000 gallons) and the quantity traded with the tax (960 gallons):
Deadweight loss = Quantity without tax - Quantity with tax
Deadweight loss = 1000 - 960
Deadweight loss = 40 gallons
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Sales 1,782,600
Commission income 35,600
Furniture, at cost 298,500
Motor vehicles, at cost 614,800
Carriage inwards 36,300
Utilities expense 81,700
Trade receivables 270,800
Trade payables 221,400
Discount 29,200 41,800
Accumulated depreciation as at 1 April 2021
- Furniture 163,500
- Motor vehicles 308,300
Drawings: Lydia 47,500
Capital: Lydia 320,000
Advertising expense 54,600
Rent expense 211,800
Purchases 872,300
Returns inwards 45,900
Returns outwards 37,700
Insurance expense 102,300
Salaries expense 214,200
Carriage outwards 41,500
5% Bank loan, repayable in 2030 280,000
Cash at bank 123,700
Inventory as at 1 April 2021 145,800
3,190,900 3,190,900
The following additional information was made available before the year-end closing:
1. In January 2022, Purple Co. returned some defective goods of $6,800 to its suppliers. These
had been purchased on credit. The business had not recorded the return of these goods as at
31 March 2022.
2. Purple Co. received $11,380 for goods to be delivered in April 2022. This had been included
in Purple Co.’s sales for the year.
3. Lydia has rented out her warehouse to Monica Trading at a monthly rental of $4,500. The
rental for February and March 2022 has not been received as at 31 March 2022.
4. The amount of annual depreciation on fixed assets were as follows:
Furniture - $33,700
Motor vehicles - $41,600
5. Insurance expense amounting to $5,100 had been mistakenly recorded as salaries expense.
6. A receipt of $99,750 from a credit customer in February 2022 had not been recorded in
the books of Purple Co. A 5% discount which had been recorded had been given to the
customer for prompt payment.
7. Advertising expense in the trial balance consisted of advertising paid for January 2022 to
June 2022.
8. Interest expense in the trial balance relates to the bank loan which was taken up on 1 July
2021. The outstanding interest for year has not been accounted for as at year-end.
9. During the year, Lydia took some inventory which had cost $4,930 for personal use. This
had been omitted from the financial records of Purple Co. as at 31 March 2022.
10. Inventory as at 31 March 2022 amounted to $160,200 after a physical stock count.
Required:
(a) Prepare the necessary general journal entries to record transactions (1) to (9). Narrations
are not required. (Hint: For some transactions, you will need to create new accounts which
are not shown on the trial balance.)
(b) Prepare the following financial statements for Purple Co.:
(i) Statement of Comprehensive Income for the year ended 3
(a) The necessary general journal entries to record transactions (1) to (9) are as follows:
(b) Financial statements for Purple Co.:
(i) Statement of Comprehensive Income for the year ended 31 March 2022:
Sales $1,782,600
Return of defective goods:
Purchases Returns Dr. 6,800
Trade Payables Cr. 6,800
Prepayment for goods to be delivered:
Trade Receivables Dr. 11,380
Sales Cr. 11,380
Rental income:
Trade Receivables Dr. 9,000
Rental Income Cr. 9,000
Depreciation expense:
Depreciation Expense - Furniture Dr. 33,700
Depreciation Expense - Motor vehicles Dr. 41,600
Accumulated Depreciation - Furniture Cr. 33,700
Accumulated Depreciation - Motor vehicles Cr. 41,600
Correction of insurance expense:
Salaries Expense Dr. 5,100
Insurance Expense Cr. 5,100
Receipt from credit customer:
Cash at Bank Dr. 99,750
Trade Receivables Cr. 99,750
Adjustment for advertising expense:
Prepaid Advertising Dr. 27,300
Advertising Expense Cr. 27,300
Accrual of interest expense:
Interest Expense Dr. [Amount of outstanding interest]
Interest Payable Cr. [Amount of outstanding interest]
Personal use of inventory:
Drawings Dr. 4,930
Inventory Cr. 4,930
(b) Financial statements for Purple Co.:
(i) Statement of Comprehensive Income for the year ended 31 March 2022:
Sales $1,782,600
Commission Income $35,600
Less: Returns Inwards ($45,900)
Net Sales $1,772,300
Cost of Goods Sold:
Opening Inventory $145,800
Purchases $872,300
Carriage Inwards $36,300
Less: Returns Outwards ($37,700)
$1,016,700
Less: Closing Inventory ($160,200)
Cost of Goods Sold $856,500
Gross Profit $915,800
Operating Expenses:
Advertising Expense $54,600
Rent Expense $211,800
Utilities Expense $81,700
Insurance Expense $97,200 ($102,300 - $5,100)
Depreciation Expense - Furniture $33,700
Depreciation Expense - Motor Vehicles $41,600
Salaries Expense $214,200
Carriage Outwards $41,500
$775,800
Operating Profit $140,000
Other Expenses:
Interest Expense [Amount of outstanding interest]
Net Profit for the Year $140,000 (assuming no other expenses)
Please note that the calculation of net profit may be affected by the amount of outstanding interest, which is not provided in the given information.
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You have $100,000 to invest in either Stock D, Stock F, or a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 12 percent. Assume D has an expected return of 15.5 percent, F has an expected return of 11.4 percent, and the risk-free rate is 6.25 percent. If you invest $50,000 in Stock D, how much will you invest in Stock F?
Given data:Amount to be invested = $100,000Expected return of the portfolio = 12%Expected return of Stock D = 15.5%Expected return of Stock F = 11.4%Risk-free rate = 6.25%Amount invested in Stock D = $50,000We need to find out how much should be invested in Stock F.
Let the amount to be invested in Stock F be x.Now, the total amount invested in the portfolio is $100,000.The amount invested in Stock D is $50,000.The remaining amount to be invested is $50,000 - x.Thus, the expected return on the portfolio can be expressed as:12% = [(50,000 / 100,000) × 15.5%] + [(50,000 - x) / 100,000] × 11.4% + [(100,000 - 50,000 - (50,000 - x)) / 100,000] × 6.25%
Where, the first term on the right-hand side represents the expected return on Stock D, the second term represents the expected return on Stock F, and the third term represents the expected return on the risk-free asset.Simplifying the above equation, we get:1.44 = 0.0775 + 0.114(0.5 - x / 100) + 0.0625(0.5 + x / 100)1.3625 = 0.057(0.5 - x / 100) + 0.0625(0.5 + x / 100)1.3625 = 0.0285 - 0.00057x + 0.03125 + 0.00078125x1.3625 = 0.05975 + 0.00021125x1.3025 = 0.00021125x x = 6168.22
So, the amount that should be invested in Stock F is approximately $6,168. Therefore, the amount to be invested in Stock F is $6,168.
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Suppose the market demand curve is given by Q1-96-16P, and the market supply curve is given by Q5 8 6P What is the equilibrium price and quantity? Multiple Choice P-$5 and Q-32 OP-$4 and 07-32 O P-$5 and Q-16 P-54 and Q-16
The correct answer is:
Equilibrium price (P) = $5.06
Equilibrium quantity (Q) ≈ 16.36 units.
Explanation:
The equilibrium price and quantity can be determined by setting the quantity demanded (Qd) equal to the quantity supplied (Qs). The demand equation is given as Qd = 96 - 16P, where P represents the price. The supply equation is Qs = 5 + 8P - 6P.
Setting Qd equal to Qs:
Qd = Qs
96 - 16P = 5 + 8P - 6P
Simplifying the equation:
Combine like terms on both sides of the equation:
96 - 16P = 5 + 2P
Solving for P:
Move the variables to one side and the constants to the other side:
96 - 5 = 2P + 16P
91 = 18P
Divide both sides by 18:
P = 91 / 18
P ≈ 5.06
The equilibrium price is approximately $5.06 per unit.
Finding the equilibrium quantity:
Substitute the equilibrium price (P) into either the demand or supply equation. Using the supply equation:
Qs = 5 + 8P - 6P
Qs = 5 + 8(5.06) - 6(5.06)
Qs = 16.36
The equilibrium quantity is approximately 16.36 units.
Therefore, the correct answer is:
Equilibrium price (P) = $5.06
Equilibrium quantity (Q) ≈ 16.36 units.
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Explain
the two somewhat distinct meanings of " endogenous / endogeneity "
in the growth theory .
In the context of growth theory, the term "endogenous" or "endogeneity" can have two distinct meanings: Endogenous variables, Endogeneity as a statistical concept.
Endogenous variables: In growth theory, an endogenous variable refers to a variable that is determined within the economic model itself. These variables are typically influenced by other variables within the model and are not exogenously determined or influenced by external factors. In other words, endogenous variables are endogenously determined by the interactions and dynamics of the model's internal components. In the context of growth theory, examples of endogenous variables could include factors such as investment, technological progress, human capital accumulation, or savings rates. These variables are often the focus of analysis as they are considered to be driven by internal mechanisms within the economic system.
Endogeneity as a statistical concept: In growth theory, endogeneity can also refer to a statistical property related to the relationship between variables. In this context, endogeneity arises when a variable of interest is correlated with the error term in a regression model. This correlation between the endogenous variable and the error term violates the assumption of exogeneity, which assumes that the error term is unrelated to the independent variables in the model. Endogeneity can lead to biased and inconsistent estimation of the relationships between variables. To address endogeneity in empirical studies, researchers often employ econometric techniques such as instrumental variables, fixed effects, or two-stage least squares regression to account for the potential endogeneity bias.
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A leading insurance company receives a notification of RM30 million in December to be invested fully in the BMSB . Currently , the cash index stands at 1000 while December futures quote at 1120. In anticipation of rising prices , show your hedging strategy and benefits if at maturity :
1- Both prices converged at 1200
2- Both prices converged at 926
please answer with details
The insurance firm is shielded from unfavourable pricing changes and has the tools to reduce any losses.
The insurance firm may employ a lengthy hedging approach to protect the investment. At the current futures price of 1120, it would sell BMSB futures contracts for RM30 million. 1. In the event that both prices converge at 1200, the insurance firm gains because the gain on the futures contract (RM30 million (1200 - 1120)) more than compensates the loss on the cash position (RM30 million (1200 - 1000)).2- The insurance firm still gains if both prices converge at 926 since the gain on the cash position (RM30 million (926 - 1000)) more than compensates the loss on the futures contract (RM30 million (926 - 1120)).
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Suppose that a new electronic equipment is introduced that increases the marginal product of workers in a toy factory. This will result in:
Group of answer choices
supply curve of labour shifting to the left.
supply curve of labour shifting to the right.
demand curve of labour shifting to the left.
demand curve of labour shifting to the right.
The introduction of new electronic equipment that increases the marginal product of workers in a toy factory will result in the demand curve of labor shifting to the right.
When the marginal product of workers increases, it implies that each worker can now produce more output, contributing to higher productivity and profitability for the toy factory.
As a result, the factory will have a greater demand for labor to take advantage of the increased productivity.When the demand curve of labor shifts to the right, it means that at any given wage rate, the toy factory is willing to hire more workers.
The increased demand for labor indicates that the factory values the additional output produced by the workers and is willing to pay higher wages or hire more workers to meet the increased production needs.
On the other hand, a shift in the supply curve of labor would occur if there were changes in factors such as population, immigration, or labor market conditions, which affect willingness of workers to supply their labor at various wage rates.
However, in this scenario, the introduction of new electronic equipment primarily affects the demand for labor, leading to a shift in the demand curve of labor to the right.
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A wealthy parent is trying to fund a trust fund for his oldest son. The parent has set aside $390,400.00 today in an account that pays 6.00% annual interest. His oldest son will begin receiving the trust in 12.00 years, and the trust is set up to pay 17.00 identical annual payments. What will be the yearly withdrawal for the son from the trust?
______
Answer format:Currency: Round to: 2 decimal places.
Given that a wealthy parent is trying to fund a trust fund for his oldest son. The yearly withdrawal for the son from the trust will be approximately $23,570.33, rounded to 2 decimal places.
To determine the yearly withdrawal for the son from the trust, we can use the formula for the future value of an annuity:
FV = P * [(1 + r)^n - 1] / r
Where:
FV = Future value (amount in the trust fund)
P = Yearly withdrawal (payment)
r = Interest rate per period
n = Number of periods
In this case, the future value of the trust fund is $390,400.00, the annual interest rate is 6.00% (or 0.06), the number of periods is 17, and we need to solve for the yearly withdrawal (P).
390,400 = P * [(1 + 0.06)¹⁷⁻¹] / 0.06
Simplifying the equation, we have:
P * [1.06¹⁷⁻¹] / 0.06 = 390,400
P * (1.9966 - 1) / 0.06 = 390,400
P * 0.9966 / 0.06 = 390,400
P = 390,400 * 0.06 / 0.9966
P ≈ 23,570.33
Therefore, the yearly withdrawal for the son from the trust will be approximately $23,570.33.
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Australlan and Chinese business cycle.
. Required:
• Identify business cycle for Australian in 2020;
Explain your answer:
Include reference to data;
• Identify business cycle for Australian in 2021;
Explain your answer;
Include reference to data;
Is the change in Consumption spending consistent with the phase of the business cycle you identified for 2021? Did it contribute to this phase? Does change in consumer confidence also explain the phase?
Is the change in Investment spending consistent with the phase of the business cycle you identified for 2021? Did it contribute to this phase? Does change in business confidence also explain the phase?
.
Is the change in Net exports consistent with the phase of the business cycle you identified for 2021? Did it contribute to this phase?
The change in investment spending is also expected to be consistent with the expansion phase in 2021.The change in net exports can also contribute to the phase of the business cycle
1. In 2020, Australia experienced a recession due to the impact of the COVID-19 pandemic. The business cycle for Australia in 2020 can be characterized as a contraction phase. According to the Australian Bureau of Statistics (ABS), Australia's GDP contracted by 0.2% in the March quarter and 7.0% in the June quarter of 2020, indicating a significant decline in economic activity.
2. In 2021, Australia entered a recovery phase as the country gradually emerged from the effects of the pandemic. The business cycle for Australia in 2021 can be described as an expansion phase. The ABS reported that Australia's GDP grew by 1.8% in the March quarter and 0.7% in the June quarter of 2021, signaling a return to positive economic growth.
Regarding the change in consumption spending in 2021, it is likely consistent with the expansion phase. As the economy recovered, consumer confidence increased, leading to higher consumption expenditure. Rising consumer confidence indicates optimism and willingness to spend, which contributes to the expansion phase of the business cycle.
The change in investment spending is also expected to be consistent with the expansion phase in 2021. As the economy recovered, businesses regained confidence and were more willing to invest in new projects and capital expenditure. Increased business confidence leads to higher investment spending, which supports the expansion phase of the business cycle.
The change in net exports can also contribute to the phase of the business cycle. In an expansion phase, increased domestic economic activity often leads to higher demand for exports, contributing to the growth of net exports. However, this contribution may be influenced by other factors such as exchange rates, global demand, and trade policies.
It's important to note that the explanations provided are based on general economic principles and assumptions. For a more detailed and accurate analysis, specific data and indicators relating to consumption spending, investment spending, and net exports in Australia during 2021 would need to be examined.
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Consultex, Incorporated, was founded in 2018 as a small financial consulting business. The company had done reasonably well from 2018 through 2020 but started noticing its cash dwindle early in 2021. In January 2021, Consultex had paid $11,500 to purchase land and repaid $4,000 principal on an existing promissory note. In March, the company paid $1,100 cash for dividends and $1,100 to repurchase and eliminate Consultex stock that had previously been issued for $1,100. To improve its cash position, Consultex borrowed $4,100 by signing a new promissory note in May and also issued stock to a new private investor for $11,100 cash. Year-end comparative balance sheets and income statements are presented below. CONSULTEX, INCORPORATED Balance Sheet October 31 2021 2020 Assets Cash $ 11,300 Accounts Receivable Prepaid Rent $ 9,450 12,200 1,550 22,500 11,100 2,100 Land Total Assets $ 45,700 11,000 $35,500 Liabilities and Stockholders' Equity Salaries and Wages Payable $1,550 $ 2,100 Income Taxes Payable 1,100 1,100 Notes Payable (long-term) Common Stock 11,200 11,100 18,100 8,100 Retained Earnings 13,750 13,100 Total Liabilities and Stockholders' Equity $ 45,700 $ 35,500 CONSULTEX, INCORPORATED Income Statement For the Year Ended October 31 2821 2020 Sales Revenue $ 153,500 $ 156,500 Salaries and Wages Expense 97,100 96,100 Rent Expense 35,100 29,100 Utilities Expenses 18,800 19,100 Income before Income Tax Expense 2,500 12,200 Income Tax Expense 750 3,660 Net Income $1,750 $8,540 Required: 1. Prepare a properly formatted Statement of Cash Flows for Consultex, Incorporated, for the year ended October 31, 2021 (using the indirect method). (Amounts to be deducted should be indicated with a minus sign.) d CONSULTEX, INCORPORATED Statement of Cash Flows For the Year Ended October 31, 2021 Cash Flows from Operating Activities: Net Income Changes in Current Assets and Current Liabilities Accounts Receivable Prepaid Rent Salaries and Wages Payable Cash Provided by Operating Activities Cash Flows from Investing Activities: Purchased Land Cash Used in Investing Activities Cash Flows from Financing Activities: Repaid Promissory Note Principal Issued New Promissory Note Paid Cash Dividends Issued New Company Common Stock 4,100 X Repurchased Company Common Stock (4,000) X Cash Provided by Financing Activities 9,000 Net Decrease in Cash (1,850) Beginning Cash Position, October 31, 2020 11,300 Ending Cash Position, October 31, 2021 $ 9,450 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted (1.100) 550 (550) (11,500) 11,100 X (1,100) X (1,100) $ 1,750 650 (11,500)
The Statement of Cash Flows for Consultex, Incorporated, shows net cash used in operating and investing activities and net cash provided by financing activities, resulting in a decrease in cash by $1,950. The ending cash position on October 31, 2021, is $9,350.
CONSULTEX, INCORPORATED Statement of Cash Flows
For the Year Ended October 31, 2021
Cash Flows from Operating Activities:
Net Income $1,750
Changes in Current Assets and Current Liabilities:
Accounts Receivable (1,100)
Prepaid Rent 550
Salaries and Wages Payable (550)
Cash Provided by Operating Activities 650
Cash Flows from Investing Activities:
Purchased Land (11,500)
Cash Used in Investing Activities (11,500)
Cash Flows from Financing Activities:
Repaid Promissory Note Principal (4,000)
Issued New Promissory Note 11,100
Paid Cash Dividends (1,100)
Issued New Company Common Stock 9,000
Repurchased Company Common Stock (1,100)
Cash Provided by Financing Activities 13,900
Net Decrease in Cash (1,950)
Beginning Cash Position, October 31, 2020 11,300
Ending Cash Position, October 31, 2021 $9,350
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management; the importance of time management in the service industry. ii. Why should time management be viewed as a lifesuccess skill rather than a college-success strategy?
iii. Based upon your experiences and readings, why do you think university students have difficulties with time management? Include an example of your own experience where you had difficulties completing your tasks. iv. Explain the link between the level of stress, productivity, procrastination, and time management.
v. What are your common time stealers? How do you eliminate the time stealers? In order for you to open up more time for academic work and beneficial activities, which time stealers would you reduce the most? vi. Conclusion
i. Time management is crucial in the service industry to ensure efficient delivery of services.
ii. Time management should be seen as a lifesuccess skill because it extends beyond college and is essential for success in all aspects of life.
In the service industry, time management plays a vital role in meeting customer expectations and ensuring smooth operations. Efficiently managing time allows service providers to deliver their services promptly, enhancing customer satisfaction and loyalty. It also helps in maximizing productivity, minimizing delays, and avoiding bottlenecks in service delivery processes. Time management in the service industry involves prioritizing tasks, setting realistic deadlines, and allocating resources effectively, ensuring that services are delivered on time and with high quality.
Time management should be viewed as a lifesuccess skill rather than just a college-success strategy because its importance extends beyond the academic environment. Time management is a fundamental skill needed for personal and professional success in all areas of life. Whether it's meeting work deadlines, managing personal commitments, or pursuing long-term goals, effective time management enables individuals to make the most of their time, achieve desired outcomes, and maintain a healthy work-life balance. By developing good time management habits early on, individuals can set themselves up for success in their careers and personal lives.
Overall, time management is crucial in the service industry as well as in various other contexts. It is a valuable skill that should be cultivated and practiced consistently to ensure productivity, efficiency, and success in both academic and non-academic pursuits.
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Buffalo Company owns a 7,500-acre tract of timber purchased in 2006 at a cost of $1,599 per acre. At the time of purchase, the land was estimated to have a value of $399 per acre without the timber. Buffalo Company has not logged this tract since it was purchased. In 2020, Buffalo had the timber cruised. The cruise (appraiser) estimated that each acre contained 9,840 board feet of timber. In 2020 , Buffalo built 10 miles of roads at a cost of $8,460 per mile. After the roads were completed, Buffalo logged and sold 4,305 trees containing 1,025,000 board feet. Part 1 Determine the cost of timber sold related to depletion for 2020 . (Round answer to 0 decimal places, e.g. 5,125.) Cost of timber sold \$ eTextbook and Media Attempts: unlimited Part 2 If Buffalo depreciates the logging roads on the basis of timber cut, determine the depreciation expense for 2020 . (Round answer to 0 decimal places, e.g. 5,125.) Depreciation expense $ If Buffalo plants five seedlings at a cost of $5 per seedling for each tree cut, how should Buffalo treat the reforestation? Buffalo should the cost of \$
In 2020, the cost of timber sold related to depletion is $125,050. The depreciation expense for logging roads is $19,651. Reforestation costs should be treated as an expense.
Part 1: Cost of Timber Sold Related to Depletion for 2020:
To determine the cost of timber sold related to depletion, we need to calculate the depletion per board foot and multiply it by the number of board feet sold. Here's the calculation:
Total cost of timber = (Total land cost - Land value without timber) = ($1,599 - $399) = $1,200 per acre
Depletion per board foot = Total cost of timber / Total board feet = ($1,200 / 9,840) = $0.122 per board foot
Cost of timber sold related to depletion = Depletion per board foot * Board feet sold = ($0.122 * 1,025,000) = $125,050
Part 2: Depreciation Expense for Logging Roads in 2020:
If Buffalo Company depreciates the logging roads based on timber cut, the depreciation expense can be calculated by dividing the total road cost by the number of trees cut. Here's the calculation:
Depreciation expense for logging roads = Total road cost / Number of trees cut = ($8,460 * 10) / 4,305 = $19,651
Regarding reforestation costs, Buffalo should treat them as an expense in the period they are incurred. Since Buffalo plants five seedlings at a cost of $5 per seedling for each tree cut, the reforestation cost would be $5 multiplied by the number of trees cut (4,305), resulting in a total reforestation cost of $21,525. This cost is recognized as an expense to reflect the ongoing commitment of Buffalo Company to replenish the timber resources.
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Explain how the balance of payments can provide information about an economy's saving behavior. What other balance sheet could provide information about this? What is the relationship between these two balances?
The balance of payments (BoP) is an accounting record that summarizes a country's economic transactions with the rest of the world over a specific time period, typically a year.
It is divided into two main components: the current account and the capital account. The current account records a country's trade in goods and services, net income from overseas investments, and net transfer payments, while the capital account records a country's investment flows, including foreign direct investment and portfolio investment.
The balance of payments can provide information about an economy's saving behavior because it reflects the difference between a country's domestic savings and its domestic investment. Specifically, if a country has a current account surplus, it means that it is exporting more than it is importing, and therefore saving more than it is investing domestically. Conversely, if a country has a current account deficit, it means that it is importing more than it is exporting, and therefore investing more than it is saving domestically.
Another balance sheet that could provide information about an economy's saving behavior is the national income and product accounts (NIPA). The NIPA measure a country's economic activity and include figures such as gross domestic product (GDP), personal income, and disposable income. In particular, the NIPA includes measures of national saving, which reflect the amount of income that is not consumed by households or governments but instead saved for future use.
In terms of the relationship between the balance of payments and the NIPA, they are both important indicators of a country's economic health and performance. While the balance of payments provides information on a country's international transactions and saving behavior, the NIPA provide information on a country's overall economic activity and income generation.
Together, these two balances can give policymakers and analysts a comprehensive view of a country's economic situation and help identify areas where corrective action may be needed, such as promoting greater domestic savings or reducing trade imbalances.
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Instructions Please use trade policies as examples to discuss the politics behind policy making. In particular, please explain why some policies got implemented even though they may be against economi
Trade policies are often subject to political considerations that can override purely economic concerns. few examples includes Tariffs and Protectionism, Subsidies and Industrial Development and Trade Restrictions for National Security.
In general , Tariffs are taxes imposed on imported goods, increasing their price and making them less competitive in the domestic market. While tariffs can distort market efficiency and result in higher prices for consumers. Subsidies are financial incentives provided by governments to support domestic industries. Although subsidies can distort market dynamics and potentially create inefficiencies.
Also, Policymakers may implement policies that go against economic principles due to pressure from domestic industries, political considerations, job protection, regional development, national security concerns, or geopolitical factors. Understanding the politics behind trade policy-making helps elucidate the broader context within which decisions are made, highlighting the trade-offs between political goals and economic efficiency.
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What are the purposes behind using a Know Your Client (KYC) questionnaire? Select all that apply.
a. Uncover prior investment experience
b. Use as an assessment tool
c. Understand the client's attitude toward risk
d. Use only to protect the client, not the advisor or institution
The purposes behind using a Know Your Client (KYC) questionnaire include all of the above options (a,b,c,d).
a. Uncover prior investment experience: KYC questionnaires are used to gather information about a client's past investment experience, including their knowledge, understanding, and familiarity with different investment products or asset classes.
b. Use as an assessment tool: KYC questionnaires are used as an assessment tool to evaluate the client's financial situation, investment goals, risk tolerance, and other relevant factors. This helps financial advisors or institutions tailor their recommendations and advice to the specific needs and preferences of the client.
c. Understand the client's attitude toward risk: KYC questionnaires aim to assess the client's risk tolerance and their willingness to take on investment risks. This information helps advisors or institutions recommend suitable investment options that align with the client's risk preferences.
d. Use to protect both the client and the advisor or institution: KYC questionnaires serve as a risk management tool for financial advisors and institutions. By gathering comprehensive information about the client's financial situation, investment objectives, and risk tolerance, they can ensure that the investment recommendations provided are suitable for the client's circumstances. This helps protect both the client and the advisor or institution from potential risks or legal issues related to unsuitable investment advice.
Therefore, the correct options are:
a. Uncover prior investment experience
b. Use as an assessment tool
c. Understand the client's attitude toward risk
d. Use to protect both the client and the advisor or institution
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A product costs BD 300,000 with a residual value of BD 50,000 at the end of its useful life of 10 years. If money is worth 6% annually. find the book value at the end of 7th using Sinking Fund Method.
The Sinking Fund Method involves investing funds periodically at compound interest rate with an aim to achieve a certain goal in the future. The book value of the product at the end of the 7th year using the Sinking Fund Method is BD 139,016.77.
The sinking fund method is an ideal method for an organization to generate funds that will be used to replace a depreciable asset when it is no longer functional. The following are the steps for calculating the book value of the product at the end of the 7th year:
Step 1: Determine the annual sinking fund payment by using the formula: A= R [(1+i)^n -1]/ i, where: R= Residual value of the product= BD 50,000, i= interest rate= 6% per annum, n= useful life of the product= 10 years, A= sinking fund payment per annum.
Therefore, A= 50,000 [(1+0.06)^10 -1]/ 0.06= 50,000 [(1.06)^10 -1]/ 0.06= 50,000 [1.791 -1]/ 0.06 = 50,000 [0.791]/ 0.06 = 659,166.67 (rounded off to nearest two decimal places).Therefore, the annual sinking fund payment is BD 659,166.67.
Step 2: Calculate the amount of the sinking fund invested after 7 years from the date of purchase of the product by using the formula: P= A [(1+i)^n -1]/ i, where: P= Amount of sinking fund invested after 7 years, A= Annual sinking fund payment= BD 659,166.67, i= interest rate= 6% per annum, n= Number of years= 7 years.
Therefore, P= 659,166.67 [(1+0.06)^7 -1]/ 0.06= 659,166.67 [(1.06)^7 -1]/ 0.06= 659,166.67 [0.518]/ 0.06= 5,658,333.33 (rounded off to nearest two decimal places). Therefore, the amount of the sinking fund invested after 7 years from the date of purchase of the product is BD 5,658,333.33.
Step 3: Calculate the book value of the product at the end of the 7th year by using the formula: BV= Purchase price - (Amount of sinking fund invested after 7 years/ (1+i)^n), where: BV= Book value of the product at the end of the 7th year, Purchase price= BD 300,000, Amount of sinking fund invested after 7 years= BD 5,658,333.33, i= interest rate= 6% per annum, n= useful life of the product = 10 years.
Therefore, BV= 300,000 - (5,658,333.33/ (1+0.06)^10)= 300,000 - (5,658,333.33/ 1.791)= 300,000 - 3,160,983.23= BD 139,016.77. Therefore, the book value of the product at the end of the 7th year using the Sinking Fund Method is BD 139,016.77 (rounded off to nearest two decimal places).
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You are planning your retrament in 10 years. You curently have $612.000 in a stock account. The stock account will eam a natum of 10.5 percent in each of the next 10 years. How much will you have when you rate? Do not mand Intermediate calculations and round your answers to 2 decimal places, entor values as 3216, no dollar sign, or comme separator Numeresponse
The future value of the stock account after 10 years, with a present value of $612,000 and an annual interest rate of 10.5%, would be approximately $1,689,191.15. This calculation assumes that the interest is compounded annually.
To calculate the future value of the stock account after 10 years, we can use the formula for compound interest:
Future Value = Present Value * [tex](1 + Interest Rate)^Number of Years[/tex]
In this case, the present value is $612,000, the interest rate is 10.5% (0.105), and the number of years is 10. Plugging in these values, we have:
Future Value = $612,000 *[tex](1 + 0.105)^10[/tex]
Calculating this expression, the future value of the stock account after 10 years would be approximately $1,689,191.15.
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Please describe how Boston Scientific implements its strategy using terminology.
Boston Scientific implements its strategy through various key elements and approaches:
1) Market Segmentation: Boston Scientific identifies and targets specific market segments within the healthcare industry based on factors such as patient demographics, medical conditions, and geographic regions. This allows them to tailor their products and solutions to meet the unique needs of each segment.
2) Product Portfolio: Boston Scientific focuses on developing a diverse portfolio of medical devices and technologies across multiple therapeutic areas, including cardiovascular, urology, endoscopy, and neuromodulation. They continuously invest in research and development to innovate and introduce new products to address evolving market demands.
3) Innovation: Boston Scientific emphasizes innovation as a core component of its strategy. They actively seek advancements in medical technology and invest in research to develop breakthrough products and treatments. This includes collaborations with healthcare professionals and institutions to drive clinical research and validate the efficacy of their offerings.
4) Global Expansion: Boston Scientific has a global presence and expands its reach by entering new markets and establishing partnerships and distribution channels worldwide. This enables them to serve a broader customer base and capitalize on international growth opportunities.
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Surgeon ASR RN CA
Personnel process times (minutes) Plagiocephaly 18.0 8.0 23.0 5.0
Neoplasm skin excision 22.0 55.5 20.0 5.0
Craniosynostosis 40.0 10.5 23.0 10.0
Personnel availability Weeks per year 52.0 52.0 52.0 52.0
Less. vacation and holidays 6.0 4.0 4.0 4.0
Less: Training and leave 2.0 2.0 2.0 2.0
Available weeks per year 44.0 46.0 46.0 46.0
Hours per day 10.0 8.0 8.0 8.0
Less: Breaks, training, meetings 1.2 1.5 1.5 1.5
Available hours 8.8 6.5 6.5 6.5
Clinical minutes available per day* ______ ______ ______ ______
Clinical minutes available per year* _____ ______ ______ ______
Annual cost per person $696,960 $89,700 $134,550 $71,760
Capacity cost rate ($ per minute)* _______ ______ ______ ______
* To be computed
c.) Suppose the office implements a process change by using an RN to perform some of the
surgeon's work. Specifically, for a plagiocephaly exam, the surgeon's time decreases from
18 to 10 minutes, while the RN's time increases from 23 to 35 minutes. In addition, for a
craniosynostosis exam, the surgeon's time decreases from 40 to 22 minutes, while the RN's
time increases from 23 to 40 minutes. Assuming only the numbers of surgeons and RNs are
adjusted in response to the process changes, how will this change the staffing levels and
total cost for the outpatient office?
The change in process, involving the use of RNs for certain tasks, will likely decrease the required number of surgeons while increasing the number of RNs.
This change will lead to a reduction in staffing levels and total cost for the outpatient office due to the lower cost of RNs compared to surgeons. However, the exact staffing levels and total cost can only be determined by calculating the new clinical minutes available per day and per year, as well as the capacity cost rate.By implementing the process change and using an RN for some of the surgeon's work, the surgeon's time for a plagiocephaly exam decreases from 18 to 10 minutes, and for a craniosynostosis exam, it decreases from 40 to 22 minutes. On the other hand, the RN's time for a plagiocephaly exam increases from 23 to 35 minutes, and for a craniosynostosis exam, it increases from 23 to 40 minutes.To calculate the new staffing levels and total cost, we need to determine the clinical minutes available per day and per year. The clinical minutes available per day is the available hours multiplied by 60 minutes, and the clinical minutes available per year is the clinical minutes available per day multiplied by the available weeks per year.For example, let's calculate the clinical minutes available per day for the surgeon in the Plagiocephaly case:Available hours for the surgeon = 8.8 hoursClinical minutes available per day for the surgeon = 8.8 hours * 60 minutes = 528 minutesSimilarly, we can calculate the clinical minutes available per day for the surgeon in the Craniosynostosis case, as well as the clinical minutes available per day for the RN in both cases.Next, we can calculate the new staffing levels by dividing the clinical minutes required for each procedure by the clinical minutes available per day for each staff member. This will give us the required number of surgeons and RNs for each case.Finally, we can calculate the total cost by multiplying the required number of surgeons and RNs by their respective annual cost per person, and then summing up the costs. overall, the change in staffing levels and total cost will depend on the specific calculations using the given data.
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Flounder Corporation reported income taxes of $358,200,000 on its 2022 income statement. Its balance sheet reported income taxes payable of $278,511,000 at December 31, 2021, and $524,293,000 at December 31, 2022. What amount of cash payments were made for income taxes during 2022? Cash payment for income taxes $ The income statement for Waterway Company showed cost of goods sold of $83,600 and operating expenses of $66,200. The comparative balance sheets for the year show that inventory decreased $6,200, prepaid expenses increased $8,200, accounts payable increased $4,200, and accrued expenses payable decreased $6,200. Compute cash payments to suppliers and cash payments for operating expenses using the direct method. Cash payments to suppliers $ Cash payments for operating expenses $
Taxes on the earnings of individuals, businesses, or other entities are known as income taxes. Typically, these taxes are levied by the government at many levels, including the federal, state, and municipal levels, and the rates and rules might change depending on the area.
Calculation of cash payment for income taxes:
Cash payment for income taxes refers to the amount of money that is paid by a company in terms of its income tax dues. It is calculated as follows;
Addition to tax payable = $524,293,000 - $278,511,000
= $245,782,000
Income tax paid = Income taxes reported on income statement + addition to the tax payable
= $358,200,000 + $245,782,000
= $604,982,000.
Therefore, the cash payments made for income taxes during 2022 are $604,982,000. Calculation of cash payments to suppliers:
Cash payments to suppliers = cost of goods sold + increase in inventory - decrease in accounts payable
= $83,600 - $6,200 + $4,200
= $81,600.
Therefore, cash payments to suppliers are $81,600. Calculation of cash payments for operating expenses:
Cash payments for operating expenses = operating expenses + increase in prepaid expenses - decrease in accrued expenses payable
= $66,200 + $8,200 - (-$6,200)
= $80,600.
Therefore, cash payments for operating expenses are $80,600.
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(Future Value: Annuity Versus Annuity Due) eBook What's the future value of a 9%, 5-year ordinary annuity that pays $400 each year? If this was an annuity due, what would its future value be? Do not round intermediate calculations. Round your answers to the nearest cent. Future Value of an Ordinary Annuity: $ Future Value of an Annuity Due: $
Future Value of Annuity Due = $2,385.33 × (1 + 0.09) ≈ $2,385.33 × 1.09 ≈ $2,598.20. The future value of the annuity due is approximately $2,598.20.
To calculate the future value of an ordinary annuity, we can use the formula:
Future Value of Ordinary Annuity = Payment × [(1 + Interest Rate)^(Number of Periods) - 1] / Interest Rate
Given:
Payment = $400
Interest Rate = 9% (0.09)
Number of Periods = 5
Substituting the values into the formula:
Future Value of Ordinary Annuity = $400 × [(1 + 0.09)^5 - 1] / 0.09
Calculating the expression inside the brackets:
(1 + 0.09)^5 = 1.09^5 ≈ 1.5386
Now, calculating the future value:
Future Value of Ordinary Annuity = $400 × (1.5386 - 1) / 0.09 ≈ $400 × 0.5386 / 0.09 ≈ $2,385.33
The future value of the ordinary annuity is approximately $2,385.33.
To calculate the future value of an annuity due, we can use the same formula, but with a slight modification. The future value of an annuity due is equal to the future value of the ordinary annuity multiplied by (1 + Interest Rate).
Future Value of Annuity Due = Future Value of Ordinary Annuity × (1 + Interest Rate)
Substituting the calculated future value of the ordinary annuity:
Future Value of Annuity Due = $2,385.33 × (1 + 0.09) ≈ $2,385.33 × 1.09 ≈ $2,598.20
The future value of the annuity due is approximately $2,598.20.
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Information on targets is less available early in the
consolidation of an industry through horizontal acquisition: True
or False
False. In the early stages of industry consolidation through horizontal acquisition, information on potential targets is often less available.
This is because the consolidation process is just beginning, and companies have yet to establish clear patterns or preferences in terms of acquisition targets. As a result, there may be limited public knowledge or awareness about potential targets, making it more challenging for acquirers to identify and evaluate suitable candidates for acquisition.
In the early stages of industry consolidation through horizontal acquisition, information on targets is typically more available. This is because during the consolidation process, potential targets are identified and evaluated, leading to increased scrutiny and information sharing. As consolidation progresses, the pool of available targets may become smaller, making information less readily accessible.
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What is the purpose of using these five mentors(The master of the craft, The champion of your cause, The anchor, The reverse mentor, and The co-pilot), and how does having each one benefit students?
The purpose of using these five mentors is to provide students with a well-rounded and comprehensive support system that addresses different aspects of their personal and professional growth. The mentors benefits students in several ways; Comprehensive Support, Networking, Adaptability.
Each mentor plays a unique role and offers distinct benefits to the students;
The Master of the Craft: This mentor is an expert in the field or subject matter that the student is interested in. They possess extensive knowledge, skills, and experience and can guide the student in mastering the technical aspects of their chosen discipline.
The Champion of Your Cause: This mentor is someone who believes in the student's potential and advocates for their success. They provide support, encouragement, and motivation to the student, acting as a mentor who champions their goals and aspirations.
The Anchor: The Anchor mentor provides stability, wisdom, and guidance to students during challenging times. They are typically someone with significant life or professional experience and can offer valuable insights and perspective.
The Reverse Mentor; This mentor is typically a younger individual who brings a fresh perspective, innovative ideas, and knowledge of emerging trends and technologies. They can mentor students on new technologies, digital tools, and contemporary practices that are relevant to their field.
The Co-Pilot; The Co-Pilot mentor is a peer or a more experienced colleague who shares a similar journey or career path. They provide guidance, collaboration, and support to the student, acting as a trusted companion on their professional journey.
Having each of these mentors benefits students in several ways;
Comprehensive Support: Students receive diverse perspectives, knowledge, and guidance tailored to their specific needs, covering technical expertise, personal development, resilience, adaptability, and peer support.
Networking and Connections: Each mentor brings their own network and connections, which can open doors to opportunities, internships, collaborations, and professional contacts, expanding the students' horizons and prospects.
Relevance and Adaptability: With the Reverse Mentor and Co-Pilot, students stay updated with current trends, emerging technologies, and industry practices. This knowledge enables them to stay relevant, adapt quickly, and seize opportunities in a rapidly changing job market.
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A company finances its operations with 52 percent debt and the rest using equity. The before-tax cost of debt is 4.7% and the required rate of return on the stock is 8.3%. What is company's WACC? Assume the tax rate is 30%
The company's weighted average cost of capital (WACC) is 5.69% (approx.)
Given:
Debt proportion =52%
Equity proportion = 48% (calculated as 100% - 52%)
The before-tax cost of debt (rd) = 4.7%
The required rate of return on equity (re) = 8.3%
Tax rate = 30%
First, let's calculate the after-tax cost of debt:
After-tax cost of debt = Before-tax cost of debt × (1 - Tax rate)
After-tax cost of debt = 4.7% × (1 - 0.30)
After-tax cost of debt = 4.7% × 0.7
After-tax cost of debt = 3.29%
Now calculate the WACC using the following formula:
WACC = (Debt proportion × After-tax cost of debt) + (Equity proportion × Required rate of return on equity)
WACC = (52% × 3.29%) + (48% × 8.3%)
WACC = 1.7116% + 3.984%
WACC = 5.6956%
Thus, the company's weighted average cost of capital (WACC) is approximately 5.6956%.
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You work for a pharmaceutical company that has developed a new drug. The patent on the drug will last 17 years. You expect that the drug's profits will be $3 million in its first year and that this amount will grow at a rate of 5% per year for the next 17 years. Once the patent expires, other pharmaceutical companies will be able to produce the same drug and competition will likely drive profits to zero. What is the present value of the new drug if the interest rate is 9% per year? The present value of the new drug is $ million. (Round to three decimal places.)
The present value of the new drug is the sum of the present value of each year's cash flow, which is:
PV = $2,752,293.58 + $61,044,171.77 = $63,796,465.35 million
To calculate the present value of the new drug, we need to calculate the cash flows for each year based on the expected profits and discount them to their present value using the given interest rate of 9%. We can use the formula for the present value of a growing perpetuity to calculate the present value of the cash flows beyond the first year:
PV = PMT / (r - g)
Where PV is the present value, PMT is the payment per period, r is the discount rate, and g is the growth rate.
In this case, the payment per period is the expected profits, which start at $3 million in the first year and grow at a rate of 5% per year for the next 17 years. Therefore, the cash flows for each year are as follows:
Year 1: $3,000,000
Year 2: $3,150,000
Year 3: $3,307,500
...
Year 17: $6,840,555.73
To calculate the present value of these cash flows, we need to discount each cash flow to its present value using the formula:
PV = CF / (1 + r)^n
where CF is the cash flow, r is the discount rate, and n is the number of periods.
Substituting in the values, we get:
PV(Year 1) = $3,000,000 / (1 + 0.09)^1 = $2,752,293.58
PV(Years 2-17) = $6,840,555.73 / (0.09 - 0.05) / (1 + 0.09)^1 = $61,044,171.77
Therefore, the present value of the new drug is the sum of the present value of each year's cash flow, which is:
PV = $2,752,293.58 + $61,044,171.77 = $63,796,465.35 million
Rounding to three decimal places gives a present value of $63.796 billion. Therefore, the present value of the new drug is $63.796 billion.
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If I licensee he adds in addendum, that he has created, to the contract to buy and sell real estate, the licensee a. should only use a Commission approved addendum form b. Is acting as a transaction by writing in addendum c. is providing an additional service to the principal and can't charge a fee d. is in violation of Commission rules, and could be disciplined by the Commission ithout compensation in a real estate transaction
Real estate licensees are required to follow the rules and regulations of the real estate commission in the state where they are licensed. These rules and regulations typically prohibit licensees from adding addendums to real estate contracts without the consent of all parties to the contract. If a licensee adds an addendum to a contract without the consent of all parties, they could be disciplined by the real estate commission, which could include fines, suspension, or even revocation of their license.
Here are some of the reasons why a licensee might add an addendum to a real estate contract:
To clarify or add additional terms to the contract.
To address a specific issue that has arisen during the negotiation process.
To meet the requirements of a lender or other third party.
However, it is important to note that adding an addendum to a real estate contract can be risky. If the addendum is not properly drafted, it could invalidate the entire contract. Additionally, if the addendum is not agreed to by all parties to the contract, it could lead to disputes and legal problems.
If you are a real estate licensee and you are considering adding an addendum to a real estate contract, it is important to consult with an attorney to make sure that you are in compliance with the law and that you are protecting your client's interests.
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A company has a debt to equity ratio of 50percent and makes interest payments of $200,000 at the end of each year. The cost of the firm’s levered equity is 16percent. The firm estimates that annual sales will be $3,000,000; annual cost of goods sold will be $1,500,000; and annual general and administrative costs will be $500,000. These cash flows are expected to remain the same forever. The corporate tax rate is 25percent.
a.Use the free cash flow to equity approach to determine the value of the company’s equity.
b.Find the total value of the company.
a. Use the free cash flow to equity approach to determine the value of the company’s equity.
We can find the free cash flow to equity (FCFE) using the formula: FCFE = Net Income - (Capital Expenditure + Change in Working Capital) + New Debt Issued - Debt Repaid+ New Shares Issued x (1 - Dividend Payout Ratio)
First, let's determine the Capital Expenditure (CapEx) and Change in Working Capital (WC).
WC = 0 because there is no mention of it. CapEx = Sales x Capital
Expenditure Ratio = $3,000,000 x 1/3 = $1,000,000FCFE = Net Income - (CapEx + WC) + New Debt Issued - Debt Repaid + New Shares Issued x (1 - Dividend Payout Ratio)
FCFE = ($3,000,000 - $1,500,000 - $500,000) x (1 - 0.25) - ($1,000,000 + 0) + 0 - 0 = $225,000
With this value, we can use the formula for the value of the equity:
Value of Equity = FCFE / (Cost of Equity - Growth Rate)
Growth Rate = 0FCFE = $225,000
Cost of Equity = 16%
Value of Equity = $225,000 / (16% - 0) = $1,406,250
b. Find the total value of the company.
We can use the formula for the value of the entire company (V) for this:
V = Value of Equity + Value of Debt
Value of Equity = $1,406,250
Value of Debt = Debt to Equity Ratio x Value of Equity = 50% x $1,406,250 = $703,125V = $1,406,250 + $703,125 = $2,109,375
Therefore, the total value of the company is $2,109,375.
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Dazzle Corporation purchased a patent for P7,140,000 on January 2014. The patent is
being amortized over the remaining legal life of 15 years expiring on January 2029.
During 2017, Dazzle Corporation determined that the economic benefits of the patent
would not last longer than ten years from the date of acquisition.
Using the same information on number (33), what amount should be charged to patent
amortization expenses for the year ended December 31, 2017, assuming there is no
change in the patent's useful life?
The amount that should be charged to patent amortization expenses for the year ended December 31, 2017, assuming there is no change in the patent's useful life is P 284,000.
The amount that should be charged to patent amortization expenses for the year ended December 31, 2017, assuming there is no change in the patent's useful life would be P 284,000.
Patent Amortization The patent is being amortized over the remaining legal life of 15 years. Therefore, the annual amortization is computed as follows:
P7,140,000 ÷ 15 years
= P 476,000
Patent amortization for 2017:
Year 1: P 476,000
Year 2: P 476,000
Year 3: P 476,000
Year 4: P 284,000 (remaining book value: P 1,904,000)
The remaining book value of the patent at the beginning of 2017 is P 1,904,000, which is computed as follows:
P 7,140,000 – (P 476,000 x 3 years) = P 1,904,000
Since Dazzle Corporation determined that the economic benefits of the patent would not last longer than ten years from the date of acquisition, the patent's remaining useful life is only seven years from the beginning of 2017, which is equivalent to four years of the remaining legal life (15 years less 3 years of legal life).
Therefore, the amount that should be charged to patent amortization expenses for the year ended December 31, 2017, assuming there is no change in the patent's useful life would be P 284,000, computed as follows:
P 1,904,000 ÷ 7 years = P 272,000
Rounded to the nearest thousand, the patent amortization expense for 2017 is P 284,000 (P 272,000 rounded to the nearest thousand).
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1. Identify and critique the primary methods for facilitating a performance appraisal.
2. What is a career? How do traditional models of careers differ from more contemporary models?
3. If you will soon enter a new career, what issues most concern you? How might an employer help you deal with these issues?
1. Methods for facilitating a performance appraisal: Performance appraisal involves different methods, each with its advantages and disadvantages.
The primary methods used for facilitating performance appraisal include: Management by Objectives (MBO) – Employees work with their managers to create measurable objectives. Their progress towards meeting those objectives is monitored throughout the appraisal period. Behaviorally Anchored Rating Scale (BARS) – A scale where an employee’s behavior is rated in the form of a numerical rating or a description of certain behaviors. Critical Incident Technique – An evaluation of an employee’s performance based on specific behaviors demonstrated on the job.
2. A career is an individual’s long-term pursuit of a particular occupation, profession, or trade. Traditional models of careers often involved a long-term commitment to one organization and the ability to advance up the corporate ladder. There was a defined path of advancement for employees, with regular promotions and salary increases. More contemporary models of careers emphasize skills, knowledge, and flexibility.
Workers may move between organizations, industries, and professions to achieve their career goals. There is less of a focus on long-term job security with one employer, and more emphasis on learning, development, and transferable skills.
3. If I was about to enter a new career, some of the issues that may concern me include: Career progression – will there be opportunities for me to grow and advance in the organization? Work-life balance – will I be able to maintain a healthy balance between my work and personal life? Culture fit – will I fit in with the organization’s culture and values?Training and development – will I receive the necessary training and development to be successful in my new role?
Employers can help me deal with these issues by providing opportunities for learning and development, offering flexible work arrangements, promoting work-life balance, and creating a positive workplace culture that aligns with my values.
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