The project’s payback period is 5 years.
The project’s payback period is the amount of time it takes for the initial investment to be recovered through cash inflows from the project. Therefore, the payback period can be computed as follows:
Deduct the initial cost of the project from the initial cash inflow, $5,800, to get the total amount of cash inflow remaining:
$5,800 - $24,450 = -$18,650
Deduct the first cash inflow ($8,700) from the remaining cash inflow (-$18,650) to obtain the net cash inflow after the first year:
-$18,650 + $8,700 = -$9,950
Deduct the second cash inflow ($7,600) from the remaining cash inflow (-$9,950) to obtain the net cash inflow after the second year:
-$9,950 + $7,600 = -$2,350
Deduct the third cash inflow ($6,600) from the remaining cash inflow (-$2,350) to obtain the net cash inflow after the third year:
-$2,350 + $6,600 = $4,250
Deduct the fourth cash inflow ($6,600) from the remaining cash inflow ($4,250) to obtain the net cash inflow after the fourth year:
$4,250 + $6,600 = $10,850
Since the net cash inflow becomes positive after the fourth year, the payback period for the project is determined as follows:
Payback period = Year 4 + (Amount to recover ÷ Cash inflow in the fifth year)
Year 4 is the fourth year since that's when the net cash inflow became positive.
Amount to recover = $6,600 (balance needed to be recovered)
Cash inflow in year 5 = $6,600
Payback period = 4 + ($6,600 ÷ $6,600) = 5 years
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You shorted 325 shares of DUK for $61 per share. Initial margin is 34%. What is the total value of the assets in your account?
The total value of the assets in your account is $26,560.50.
To calculate the total value of the assets in your account, we need to consider the value of the shorted shares and the initial margin.
The value of the shorted shares is the number of shares multiplied by the short price:
Value of Shorted Shares = Number of Shares * Short Price
Value of Shorted Shares = 325 * $61 = $19,825
The initial margin is given as a percentage. To calculate the initial margin amount, we multiply the value of the shorted shares by the initial margin percentage:
Initial Margin Amount = Value of Shorted Shares * Initial Margin Percentage
Initial Margin Amount = $19,825 * 34% = $6,735.50
The total value of the assets in your account is the sum of the value of the shorted shares and the initial margin amount:
Total Value of Assets = Value of Shorted Shares + Initial Margin Amount
Total Value of Assets = $19,825 + $6,735.50 = $26,560.50
Therefore, the total value of the assets in your account is $26,560.50.
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In your proposal, you need to state the following things. 1. What is your research topic? (Your topic should be in the field of sports economics.) 2. Why is it important? (Why do we care?) 3. How do you plan to research the topic? Type your proposal in the box below. You proposal should be no less than 200 words.
Sports Economics Research Proposal Sports is an integral part of the modern society that not only acts as a form of entertainment but also has a tremendous impact on the economy.
The sports industry is a multibillion-dollar business and has a significant impact on local and national economies. The aim of this research is to examine the economic impact of sports on a society. The research topic.
This topic will be beneficial in understanding the sports industry's contribution to the economy. The research will be conducted by analyzing secondary data sources that include articles, journals, reports, and other relevant documents. The research will focus on the following areas.
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which criteria types are used in the problem solving process
The main criteria types used in the problem-solving process include feasibility, effectiveness, efficiency, relevance, and impact.
In problem solving, feasibility refers to the practicality and achievability of a solution within given constraints. Effectiveness relates to how well a solution solves the problem and achieves the desired outcome. Efficiency evaluates the resource utilization and cost-effectiveness of the solution. Relevance assesses the alignment of the solution with the problem at hand. Impact measures the potential consequences and benefits of the solution on various stakeholders and the overall situation. By considering these criteria, problem solvers can evaluate and compare different solutions to determine the most suitable and optimal approach to address the problem effectively and efficiently.
These criteria are crucial for making informed decisions and selecting the best course of action in problem solving, enabling individuals and organizations to identify and implement viable solutions that yield positive outcomes and drive success.
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A five-year project has an initial fixed asset investment of $210,000. It will require $22,200 in net working capital at the start. Subsequently, the net working capital at the end of each year will be $20,000. The annual operating cash flow is $82,500. The fixed asset is fully depreciated over the life of the project and has no salvage value. The net working capital will be recovered when the project ends. The required return is 11.7. The NPV of the project is $ _______.
To calculate the Net Present Value (NPV) of the project, we need to determine the cash flows for each year and discount them back to the present value using the required return rate. Then, we sum up the present values of all cash flows.
Given information:
Initial fixed asset investment = $210,000
Net working capital at the start = $22,200
Net working capital at the end of each year = $20,000
Annual operating cash flow = $82,500
Required return = 11.7%
Cash Flows:
Year 0:
Initial investment: -(Fixed asset investment + Net working capital at the start)
Cash flow = -(210,000 + 22,200)
Years 1-4:
Annual operating cash flow: $82,500
Net working capital recovery: $20,000
Year 5:
Annual operating cash flow: $82,500
Net working capital recovery: $20,000
Depreciation:
Since the fixed asset is fully depreciated over the project's life and has no salvage value, the depreciation expense for each year will be constant at $42,000 (210,000 / 5).
NPV is calculated by discounting each cash flow to its present value using the required return rate and then summing them up.
Year 0:
Cash flow = -(210,000 + 22,200)
Discounted cash flow = Cash flow / (1 + Required return rate)^0
Years 1-4:
Cash flow = 82,500 + 20,000
Discounted cash flow = Cash flow / (1 + Required return rate)^n
where n = year number
Year 5:
Cash flow = 82,500 + 20,000
Discounted cash flow = (Cash flow + Net working capital recovery) / (1 + Required return rate)^5
Finally, sum up all the discounted cash flows to calculate the NPV.
To provide the direct answer, I would need the calculated values of the cash flows and the discount factors to determine the NPV of the project. Unfortunately, the specific calculations and the NPV value were not provided in the question. However, by following the explanation and conducting the necessary calculations, you can determine the NPV by summing the discounted cash flows.
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The pros and cons of having non-medical staff making
decisions
The pros and cons of having non-medical staff making decisions is important to carefully consider the pros and cons of having non-medical staff making decisions and to ensure that they are adequately trained and supervised.
Non-medical staff refers to people who are not trained medical professionals and do not have the skills or knowledge required to provide medical advice or make medical decisions.
The pros of having non-medical staff making decisions are that they are often less expensive than medical staff, and they can provide a different perspective on a patient's care.
However, there are also cons to this approach. Non-medical staff may not have the necessary knowledge or training to make informed decisions about a patient's care, and they may not be able to provide the same level of expertise as a medical professional.
In addition, if a mistake is made, it could have serious consequences for the patient, including injury or death.
Therefore, it is important to carefully consider the pros and cons of having non-medical staff making decisions and to ensure that they are adequately trained and supervised.
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Scenario 5. Joana, a recent college graduate who has an account with your bank, wants to discuss whether she should or should not buy her first car. Joana used to be in the food service industry and has a strong opinion about what she believes is good customer service. She makes comments to you, like "Are you sure you are supposed to be doing that?" and "Are you new here?"
Questions: List three things about Joana that you will need to get more information about before being able to help her in making an educated decision. Based on the questions that you listed, what are 2 possible customer profiles that would support different recommendations for Joana?
What are the recommendations for each profile? Joana would like to understand more about the monthly payment associated with a car loan. What do you tell her?
It's important to provide Joana with comprehensive information about car financing options, including potential down payment requirements, interest rates, loan terms, and any additional costs such as insurance and maintenance.
To provide Joana with the most suitable recommendation and address her concerns, we would need more information about the following:
Joana's financial situation: It is important to understand Joana's income, expenses, savings, and overall financial stability to assess her affordability for a car purchase and associated expenses.
Joana's transportation needs: Knowing Joana's daily commute, frequency of travel, and specific requirements for a car (such as size, fuel efficiency, etc.) will help determine the type of car that would be suitable for her.
Joana's long-term financial goals: Understanding Joana's financial aspirations, such as saving for a house, starting a business, or investing, will influence the recommendation for purchasing a car.
Possible customer profiles and recommendations:
Customer Profile: Stable Financial Situation and High Transportation Needs
Recommendation: In this case, if Joana has a stable income, low debt, and a strong need for transportation, it may be recommended for her to buy a car. She can consider options such as taking a car loan with manageable monthly payments or exploring lease options.
Customer Profile: Limited Financial Resources and Moderate Transportation Needs
Recommendation: If Joana has limited financial resources and her transportation needs can be met through alternative means (public transportation, car-sharing services, etc.), it may be advisable for her to postpone buying a car and focus on saving and building her financial foundation.
Regarding the monthly payment associated with a car loan, you can tell Joana the following:
Monthly payment: The monthly payment for a car loan depends on several factors, including the loan amount, interest rate, and loan term. The bank can provide Joana with specific details based on her chosen car and loan options.
Amortization schedule: The bank can provide an amortization schedule that outlines the monthly payments and how they are allocated towards principal and interest over the loan term.
Affordability assessment: It's crucial for Joana to consider her monthly budget and ensure that the car loan payment fits comfortably within her financial means. The bank can help her assess affordability based on her income and expenses.
It's important to provide Joana with comprehensive information about car financing options, including potential down payment requirements, interest rates, loan terms, and any additional costs such as insurance and maintenance. Encourage Joana to ask questions and clarify any doubts she may have before making a decision.
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James Company began the month of October with inventory of $35,000. The following inventory transactions occurred during the month: a. The company purchased merchandise on account for $52,000 on October 12 . Terms of the purchase were 1/10, n/30. James uses the net method to record purchases. The merchandise was shipped fo.b. shipping point and freight charges of $700 were paid in cash. b. On October 31 , James paid for the merchandise purchased on October 12. c. During October merchandise costing $21,000 was sold on account for $32,000. d. It was determined that inventory on hand at the end of October cost $66,180.
Journalize the entries.
To determine the ending inventory and cost of goods sold for James Company, we need to analyze the inventory transactions that occurred during the month of October.
Purchase of merchandise on account: On October 12, the company purchased merchandise on account for $52,000. The terms of the purchase were 1/10, n/30. James uses the net method to record purchases. Since the net method is used, we need to calculate the net amount after deducting the discount: $52,000 - ($52,000 * 0.01) = $51,480 b. Freight charges paid: In addition to the purchase, freight charges of $700 were paid in cash. This cost should be added to the cost of the purchased merchandise: $51,480 + $700 = $52,180 c. Payment for the merchandise: On October 31, James paid for the merchandise purchased on October 12. This transaction does not directly impact the inventory value. d. Sale of merchandise on account: During October, merchandise costing $21,000 was sold on account for $32,000. This represents the cost of goods sold (COGS), which needs to be deducted from the beginning inventory to calculate the ending inventory:
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Hatter Enterprises has current assets of $15 million and a current ratio of 3. The bank has offered Hatter a $13 million revolving credit agreement at an interest rate of 10%. Hatter will have to pay a commitment fee of 1% on the unused balance. Assuming that current assets and the current ratio remain constant, calculate the total annual financing charge associated with this agreement if Hatter borrows enough to support all of its net working capital.
a.
$1,240,000
b.
$1,310,000
c.
$1,390,000
d.
$1,030,000
Answer:
To calculate the total annual financing charge associated with the revolving credit agreement, we need to consider the interest expense and the commitment fee.
Interest Expense:
The interest rate offered by the bank is 10%. Since Hatter would be borrowing enough to support all of its net working capital, we can assume that the entire $13 million credit line would be used. Therefore, the interest expense would be calculated as:
Interest Expense = Principal Amount * Interest Rate = $13,000,000 * 10% = $1,300,000.
Commitment Fee:
The commitment fee is calculated on the unused balance of the credit line. Since Hatter is using the entire $13 million credit line, there is no unused balance. Therefore, the commitment fee would be zero.
Now, let's calculate the total annual financing charge:
Total Annual Financing Charge = Interest Expense + Commitment Fee = $1,300,000 + $0 = $1,300,000.
Therefore, the total annual financing charge associated with this agreement is $1,300,000.
None of the provided options matches the calculated amount.
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Happy Factory Ltd uses a job-order costing system, and the factory incurred the following transactions during a period.
A. Raw materials purchased on accounts for $80,000.
B. Raw materials assigned to the job#: $55,000 direct and $15,000 indirect.
C. Factory payroll incurred, $150,000: General Labour costs are not included
D. Factory labour costs assigned to the job#: $90,000 direct and $60,000 indirect
E. Factory overhead assigned to production using a predetermined overhead
F. Additional overhead costs were billed, $50,000
G. Jobs completed and transferred to finished goods at cost, $160,000.
H. Jobs with a cost of $130,000 were sold on account for $275,000
I. Under/Over-applied overheads were closed off to the Cost of Sales account
Additional information
The inventory balances at the beginning of the period were $35,000 for raw materials, $45,000 for work in process and $65,000 for finished goods.
Assume the opening balances of other extracted T-accounts were zero.
Note:
The factory applies factory overhead (FOH) to work-in-process inventory using a budgeted overhead rate. The budgeted overhead rate is $10 per machine hour. The factory used 10,000 machine hours during the period.
The factory does not use Overhead Applied and Under/Over-applied Overhead accounts; applied overhead is credited to the Factory Overhead accounts before the actual overhead are incurred, and it is debited to Work in Process Inventory account.
Any difference in the balances in the Factory overhead account will be closed off to Cost of Sales account directly.
A. Raw materials purchased on accounts for $80,000.
The raw materials purchased on accounts amount to $80,000.
This transaction represents the acquisition of raw materials on credit. The cost of these raw materials will be recorded as an increase in the Raw Materials Inventory account and an increase in the Accounts Payable account.
B. Raw materials assigned to the job#: $55,000 direct and $15,000 indirect.
The raw materials assigned to the job amount to $55,000 direct and $15,000 indirect.
This transaction indicates that $55,000 worth of raw materials was used directly in a specific job. These costs will be recorded as an increase in the Work-in-Process (WIP) Inventory account and a decrease in the Raw Materials Inventory account. Additionally, $15,000 of indirect raw materials were allocated to the job, which will be included in the overhead cost calculation.
C. Factory payroll incurred, $150,000: General Labor costs are not included.
The factory payroll incurred amounts to $150,000 (excluding general labor costs).
This transaction represents the total payroll incurred by the factory during the period. However, since the general labor costs are not included, we will exclude them from the calculation. The factory payroll costs will be recorded as an increase in the Factory Payroll Expense account and an increase in the Accrued Payroll Liabilities account.
D. Factory labor costs assigned to the job#: $90,000 direct and $60,000 indirect.
The factory labor costs assigned to the job amount to $90,000 direct and $60,000 indirect.
This transaction indicates that $90,000 worth of direct labor costs were incurred for a specific job. These costs will be recorded as an increase in the WIP Inventory account and a decrease in the Factory Payroll Expense account. Additionally, $60,000 of indirect labor costs were allocated to the job, which will be included in the overhead cost calculation.
E. Factory overhead assigned to production using a predetermined overhead rate.
The amount of factory overhead assigned to production cannot be determined without knowing the predetermined overhead rate and the actual machine hours used.
The factory applies overhead to production using a predetermined overhead rate of $10 per machine hour. However, we need the actual machine hours used during the period to calculate the overhead assigned to production.
F. Additional overhead costs were billed, $50,000.
Additional overhead costs billed amount to $50,000.
This transaction represents additional overhead costs that were billed to the factory. These costs will be recorded as an increase in the Factory Overhead Expense account and an increase in the Accounts Payable account.
G. Jobs completed and transferred to finished goods at cost, $160,000.
Jobs completed and transferred to finished goods amount to $160,000.
This transaction indicates that the cost of completed jobs, totaling $160,000, was transferred from the WIP Inventory account to the Finished Goods Inventory account. This represents the value of the completed products that are ready for sale.
H. Jobs with a cost of $130,000 were sold on account for $275,000.
The jobs sold on account amount to $130,000 (cost) and $275,000 (sales).
This transaction indicates that jobs with a cost of $130,000 were sold on account, generating sales of $275,000. The cost of goods sold will be recorded as an increase in the Cost of Sales account, and the revenue from the sales will be recorded as an increase in the Accounts Receivable account and the Sales Revenue account.
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Early Progressives and modern Progressives tend to share similar policy goals expect environmental regulations & eugenic polices welfare for the needy & workers' rights reduction in immigration & workers' rights eugenic polices & reduction in immigration workers' rights & environmental regulations
Early Progressives and modern Progressives tend to share similar policy goals, except for their positions on environmental regulations and eugenic policies. They both prioritize welfare for the needy and workers' rights, but differ in their stance on reduction in immigration and eugenic policies.
Early Progressives, who emerged in the late 19th and early 20th centuries, aimed to address social and economic issues through government intervention. They advocated for policies such as welfare programs for the needy and workers' rights, emphasizing the need for social and economic justice.
Modern Progressives, in the present day, also prioritize welfare for the needy and workers' rights as key policy goals. They believe in the importance of a robust social safety net and advocate for labor protections and fair wages.
However, the two groups diverge on their positions regarding environmental regulations and eugenic policies. Modern Progressives place a strong emphasis on environmental protection and sustainability, advocating for stricter regulations to combat climate change and protect natural resources. In contrast, early Progressives did not have the same level of focus on environmental issues.
Additionally, eugenic policies, which involved controlling or limiting reproduction based on perceived genetic traits, were supported by some early Progressives but are widely rejected by modern Progressives due to their violation of human rights and ethical concerns.
In summary, while early and modern Progressives share similar goals of promoting welfare for the needy and workers' rights, they differ in their approaches to environmental regulations and eugenic policies.
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On 01/01 (beginning of the year), a company had 2.100 units of inventory with a $3 cost per unit. During the year the company purchased a total of 15.500 units, as follows: • on 01/22: 2,750 units at $3.50 cost per unit • on 03/07: on 06/20: 2.400 units at $4.50 cost per unit 2,700 units at $6 cost per unit on 07/13: 2,600 units at $6.30 cost per unit • on 09/24: 2,480 units at $7 cost per unit on 12/16: 2,570 units at $7.50 cost per unit During the year, the company sold a total of 9,420 units, as follows: • on 04/19: 3,000 units for $9.50 selling price per unit • on 11/05: 3,280 units for $8 selling price per unit • on 12/27: 3,140 units for $10.25 selling price per unit Assume a periodic inventory system & EIFQ costing. What is the total cost of ending inventory (Dec 31)?
To calculate the total cost of ending inventory using the EIFQ (Ending Inventory First, Quantity Second) costing method, we need to determine the cost of the units remaining in inventory as of December 31.
First, let's calculate the units available for sale during the year:
Beginning inventory: 2,100 units
Purchases:
- 01/22: 2,750 units
- 03/07: 2,400 units
- 06/20: 2,700 units
- 07/13: 2,600 units
- 09/24: 2,480 units
- 12/16: 2,570 units
Total units available for sale = 2,100 + 2,750 + 2,400 + 2,700 + 2,600 + 2,480 + 2,570 = 17,600 units
Next, let's calculate the units sold during the year:
- 04/19: 3,000 units
- 11/05: 3,280 units
- 12/27: 3,140 units
Total units sold = 3,000 + 3,280 + 3,140 = 9,420 units
Now, we can calculate the units in ending inventory:
Ending inventory = Units available for sale - Units sold
Ending inventory = 17,600 - 9,420 = 8,180 units
Finally, let's calculate the total cost of ending inventory:
Cost of ending inventory = (Units in ending inventory * Cost per unit) for each purchase
Cost of ending inventory:
- 2,750 units * $3.50 per unit = $9,625
- 2,400 units * $4.50 per unit = $10,800
- 2,700 units * $6 per unit = $16,200
- 2,600 units * $6.30 per unit = $16,380
- 2,480 units * $7 per unit = $17,360
- 2,570 units * $7.50 per unit = $19,275
Total cost of ending inventory = $9,625 + $10,800 + $16,200 + $16,380 + $17,360 + $19,275 = $89,640
Therefore, the total cost of ending inventory as of December 31 is $89,640.
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Which one of the following is a contra account with a credit balance?
Sales Discounts
Depreciation Expense
Cost of Goods Sold
Accumulated Depreciation
The contra account with a credit balance among the options provided is Accumulated Depreciation.
Accumulated Depreciation is a contra account that offsets the balance in the asset account it relates to, which is typically Property, Plant, and Equipment (PPE) or a similar asset category. Depreciation Expense is recorded as an operating expense on the income statement and reduces the net income of a company. On the other hand, Accumulated Depreciation is a contra account that appears on the balance sheet and represents the total amount of depreciation expense accumulated over the life of the asset.
Contra accounts have balances that are opposite to the normal balance of the account they offset. Since depreciation expense is recorded as a debit to Depreciation Expense, its contra account, Accumulated Depreciation, will have a credit balance. The credit balance in Accumulated Depreciation reduces the carrying value of the related asset and represents the cumulative amount of depreciation recognized to date.
Therefore, among the options provided, Accumulated Depreciation is the contra account with a credit balance.
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During 2022, Lakefield Corp. produced 45,000 units and sold 27.000 for $14.00 per unit. Variable manufacturing costs were $4.00 per unit. Annual fixed manufacturing overhead was $54,000. Variable selling and administrative costs were $2.00 per unit sold, and fixed selling and administrative expenses were $18,000. a. Prepare the income statement under variable costing (with the proper headings, order and labels). b. Reconcile the difference between the net income under variable costing and the net income under absorption costing (show a calculation that explains what causes the difference).
a. Income statement under variable costing: net income: $216,000 - $54,000 - $18,000 = $144,000
b. reconciliation of net income: Under variable costing, fixed manufacturing overhead is treated as a period expense and not allocated to units produced. in absorption costing, fixed manufacturing overhead is allocated to units produced as part of the product cost.
a. Income Statement under Variable Costing:
| | |
|-------------------|------------|
| sales | $378,000 |
| variable costs: | |
| - variable manufacturing costs | $108,000 |
| - variable selling and administrative costs | $54,000 |
| total variable costs | ($162,000) |
| contribution margin | $216,000 |
| fixed costs: | |
| - fixed manufacturing overhead | $54,000 |
| - fixed selling and administrative expenses | $18,000 |
| total fixed costs | ($72,000) |
| net operating income | $144,000 |
b. reconciliation of net income under variable costing and absorption costing:
the difference between the net income under variable costing and the net income under absorption costing arises due to the treatment of fixed manufacturing overhead costs.
under variable costing, fixed manufacturing overhead costs are treated as period expenses and are not included in the cost of the units produced. under absorption costing, fixed manufacturing overhead costs are allocated to each unit produced and included in the cost of goods sold.
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Marilyn Fowler recently became a sales representative for the California Adhesives Corporation and covers the states of Oregon and Washington. After completing a three-week training program, Marilyn was excited about the responsibility of reversing a downward sales trend in her territory, which had been without a salesperson for several months. The previous salesperson was fired due to poor sales performance and had not left behind any information regarding accounts. After contacting her first 20 or so customers, Marilyn came to a major conclusion: None of these customers had seen a CAC salesperson for six to nine months; they had CAC merchandise, which was not selling, and they had damaged merchandise to return. These customers were hostile toward Marilyn because the previous salesperson had used high-pressure tactics to force them to buy, and as one person said, Your predecessor killed your sales in my business. You said you would provide service and call on me regularly, but I don't care about service. In fact, it's OK with me if I never see anyone from your company again. Your competition's products are much better than yours, and their salespeople have been calling in this area for years trying to get my business. Marilyn was wondering if she had gone to work for the right company. Questions 1. If you were Marilyn, what would you do to improve the sales in your territory? 2. How long would your effort take to improve sales, and would you sell it to your sales manager?
As Marilyn, to improve sales in her territory, Should focus on rebuilding customer relationships, addressing customer concerns, demonstrating the value of California Adhesives Corporation (CAC) products.
This may involve providing exceptional customer service, offering product demonstrations and samples, and highlighting the unique features and benefits of CAC products. Building trust and credibility with customers, as well as differentiating CAC products from competitors, will be crucial in winning back their business.
To improve sales, Marilyn should start by acknowledging the negative experiences of the customers and apologizing for any inconvenience caused by the previous salesperson. She should assure them that she values their business and is committed to providing excellent service. Marilyn can then offer to visit the customers regularly to understand their needs, provide personalized recommendations, and address any concerns they may have.
Marilyn should also conduct a thorough analysis of the competition's products and identify the unique selling points of CAC products. This will enable her to effectively communicate the advantages and benefits of choosing CAC over competitors. Offering product demonstrations, samples, or trials can allow customers to experience the quality and performance of CAC products firsthand.
Rebuilding customer trust and loyalty will take time and consistent effort. Marilyn should be patient and persistent in her interactions with customers, continuously striving to meet their needs and exceed their expectations. It is essential to focus on long-term relationship building rather than expecting immediate results.
When presenting her efforts to improve sales to the sales manager, Marilyn should highlight her strategies, progress made, and positive feedback from customers. She should emphasize the steps taken to address customer concerns, rebuild relationships, and differentiate CAC products from competitors. Demonstrating a clear plan and potential for future growth in the territory will increase the likelihood of selling her efforts to the sales manager.
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Please Solve using Excel
Office building acquisition analysis:
You have been presented with an office building for sale for $115 psf. The building is 240,000 sf. There is one tenant in place who leases 50% of the building at a full service rental rate of $25.00 psf for the next 10 years. Operating expenses for the building are $13.00 psf.
Your research has proven that market lease terms for this building are $27.00 psf full service for a 5
year lease. Tenant Improvements and leasing commissions on new deals are $15.00 and 6% respectively. Buildings of this quality should trade on a 10% cap rate based on the forward twelve months NOI.
Assume that you will lease the balance of the space to two equal sized tenants at market rates. The first new lease will occur 8 months after you purchase the building, and the second new lease will happen 15 months after purchase. If you sell the building at the end of year 3 what is your unleveraged IRR? Please use the XIRR formula to calculate "=xirr(value A:value B, date A:date B)"
Now assume that you closed with a loan of 65% of your purchase price. Here are the terms of the loan, it is a 5 yr loan with a 7% interest rate that is interest only and has a one-point origination fee. What is your leveraged IRR? Please use the XIRR formula to calculate.
Based on your analysis and your general knowledge of real estate, what are other issues to consider when evaluating whether or not you should buy this building?
When evaluating whether or not to buy the building, consider factors such as market conditions, location, potential for future rental rate growth, competition, maintenance and operating costs, tenant retention, potential lease renewal or re-leasing risks.
To calculate the unleveraged IRR and leveraged IRR, we need to analyze the cash flows associated with the office building acquisition. Here's a step-by-step guide on how to perform the calculations using Excel:
Step 1: Set up the cash flow table
Create a table with two columns: "Date" and "Cash Flow." In the "Date" column, enter the corresponding dates for each cash flow, including the purchase date, lease start dates, and sale date. In the "Cash Flow" column, enter the cash flow amounts for each period.
Step 2: Calculate the cash flows
Enter the initial cash outflow for the purchase of the building (115 psf * 240,000 sf) as a negative value.
Enter the monthly rental cash inflows from the existing lease (50% of the building, $25.00 psf) for the next 10 years.
Enter the monthly rental cash inflows from the new leases (50% of the building, $27.00 psf) for the remaining lease terms.
Enter the cash inflow from the sale of the building at the end of year 3 (the sale price minus selling expenses).
Step 3: Calculate the unleveraged IRR
In an empty cell, use the XIRR formula to calculate the unleveraged IRR using the cash flow table. The formula should refer to the cash flow values and dates in the table.
Step 4: Calculate the leveraged IRR
Calculate the loan amount by multiplying the purchase price by the loan-to-value ratio (65%). Subtract any origination fees from the loan amount.
Calculate the monthly interest payment by multiplying the loan amount by the interest rate and dividing by 12.
Enter the interest payment as a negative cash outflow for the loan term (5 years).
Recalculate the cash inflows from rentals, considering the interest-only loan structure and the origination fee payment.
Enter the cash inflow from the sale of the building at the end of year 3 (the sale price minus selling expenses).
Use the XIRR formula to calculate the leveraged IRR using the modified cash flow table.
Step 5: Consider other issues
When evaluating whether or not to buy the building, consider factors such as market conditions, location, potential for future rental rate growth, competition, maintenance and operating costs, tenant retention, potential lease renewal or re-leasing risks, financing options, tax implications, and overall investment strategy.
Note: The specific calculations and cash flow entries may vary depending on your assumptions and additional details provided.
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Explain why the cash rate as determined by the central bank
functions as the anchor rate for all interest rates.
The central bank is the bank that controls the monetary policy of a country, and in most cases, it is responsible for setting the benchmark interest rate or the cash rate.
This interest rate is the rate at which banks lend to each other overnight, and it is referred to as the anchor rate for all other interest rates. The interest rate that banks charge each other on overnight loans impacts the rates that businesses.
In practice, if the central bank sets the benchmark interest rate too low, it can lead to an increase in borrowing and spending, which can, in turn, increase inflation. On the other hand, if the central bank sets the benchmark interest rate too high, it can slow down the economy.
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Study the information provided below and calculate the expected value of closing inventory as at 31 December 2022, if the FIFO method of inventory valuation is used. INFORMATION The following information was supplied by Sunbeam Manufacturers for 2022 in respect of its finished goods: R
Inventory on 01 January 640 000
Cost of production of finished goods manufactured 570 000
Cost of goods sold 435 000
Sales value of the goods sold 675 000
The expected value of closing inventory as of 31 December 2022, using the FIFO method of inventory valuation, is $775,000.
To calculate the expected value of closing inventory using the FIFO method, we need to subtract the cost of goods sold (COGS) from the cost of production of finished goods manufactured (CPFGM) and then add the result to the inventory on 1 January.
Inventory on 01 January: $640,000
Cost of production of finished goods manufactured: $570,000
Cost of goods sold: $435,000
First, we calculate the cost of goods available for sale:
Cost of goods available for sale = CPFGM + Inventory on 01 January
Cost of goods available for sale = $570,000 + $640,000 = $1,210,000
Next, we calculate the expected value of closing inventory:
Closing inventory = Cost of goods available for sale - COGS
Closing inventory = $1,210,000 - $435,000 = $775,000
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General purpose financial statements Select one: a. Are used only by external users who are not investors or creditors of the reporting entity. b. Serve the needs of investors, creditors, and other external decision makers other than investors and creditors of the reporting entity. c. Are used by creditors mainly to assess the growth of the earnings of the reporting entity. d. Both A and B are true. e. Both B and C are true.
The correct answer is option b. Serve the needs of investors, creditors, and other external decision makers other than investors and creditors of the reporting entity.
General purpose financial statements are designed to meet the informational needs of a wide range of external users, including investors, creditors, and other decision makers. These statements provide a comprehensive overview of the financial position, performance, and cash flows of the reporting entity. Investors rely on these statements to make informed investment decisions, while creditors use them to evaluate the creditworthiness and risk associated with lending funds to the entity.
However, option e, which states that both B and C are true, is incorrect. While it is true that creditors may use financial statements to assess the growth of earnings, this is not the primary purpose of general-purpose financial statements. These statements provide a broader view of the financial health and performance of the reporting entity, addressing the needs of various external users beyond just creditors.
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What is the present value (t=0) of the following cash flows if
the discount rate is 10%?
Year 1 = $2,000
Year 2 = $4,000
Year 3 = $6,000
Year 4 = $8,000
The present value (t=0) of the given cash flows at 10% discount rate can be calculated using the formula of present value of annuity:PV= CF[1/ r - 1/ r (1 + r) ^ - n]Where, PV = Present Value of Cash FlowsCF = Cash Flowsr = Discount RateN = Number of PeriodsSubstitute the values in the formula as follows;Year 1 cash flow = $2,000Year 2 cash flow = $4,000Year 3 cash flow = $6,000Year 4 cash flow = $8,000Discount rate = 10%Number of years = 4The direct formula to calculate the present value (t=0) isPV = (2,000 / 1.1) + (4,000 / 1.1²) + (6,000 / 1.1³) + (8,000 / 1.1⁴)PV = (2000 / 1.1) + (4000 / 1.21) + (6000 / 1.331) + (8000 / 1.4641)PV = 1818.18 + 2479.34 + 3888.62 + 4816.20PV = $12,002.34Therefore, the present value (t=0) of the given cash flows at 10% discount rate is $12,002.34.
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1. A 5 year bond with 10 % coupon rate and BD 2000 Face value and has yield to maturity of 6 % . Assuming annual coupon payment. Calculate price of the bond Present value of the bond.
Required:
1. Estimate the Cash Flow
2. Illustrate the time line of cash flow
3. Calculate the present value.
Additional reference:
CP= CR X FV
PV= FV/ (1 + r) n
Given: Face Value (FV) of the bond = BD 2000Coupon rate = 10%Yield to maturity = 6%Time period for which the bond has been issued = 5 yearsAnnual coupon payment
Assuming the annual coupon payment, the coupon payment for the bond can be calculated as follows:CP = CR x FVWhere, CP is the coupon paymentCR is the coupon rate
FV is the face valueCP = 10% x BD 2000 = BD 200The cash flows for the bond can be estimated as follows:Illustrating the time line of cash flows:
The time line of cash flows for the bond can be represented as follows:The present value of the bond can be calculated as follows:[tex]PV = FV / (1 + r) n[/tex]
Where, PV is the present valueFV is the face valueR is the yield to maturityN is the number of years
PV = BD 2000 / (1 + 6/100)5PV = BD 2000 / (1.338225)PV = BD 1493.85 (approx.)Therefore, the present value of the bond is BD 1493.85 (approx.).
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The following information pertains to Travis Concrete:
Sales revenue $ 2,200,000 Gross margin 740,000 Income 104,000 Invested capital 590,000 The company's imputed interest rate is 6%.
The sales margin is:
Multiple Choice
17.63%.
26.82%.
33.64%.
4.73%.
14.05%.
The sales margin for Travis Concrete is 33.64%.MThe sales margin is a measure of the company's profitability at the gross level.
The sales margin is calculated by dividing the gross margin by the sales revenue and expressing it as a percentage. In this case, the gross margin is $740,000, and the sales revenue is $2,200,000.
Sales Margin = (Gross Margin / Sales Revenue) * 100
Sales Margin = (740,000 / 2,200,000) * 100
Sales Margin = 0.3364 * 100
Sales Margin = 33.64%
Therefore, the sales margin for Travis Concrete is 33.64%. This indicates that for every dollar of sales revenue, the company retains approximately 33.64 cents as gross margin after accounting for the direct costs associated with producing the goods or services. The sales margin is a measure of the company's profitability at the gross level, before considering other operating expenses and taxes. It provides insights into the efficiency and effectiveness of the company's production and pricing strategies.
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true or false, When using a fracture pan, the larger end is placed under the buttocks.
True.When using a fracture pan, the larger end is placed under the buttocks.
A fracture pan is used for patients who cannot move due to a broken hip or leg. Fracture pans are specially designed bedpans that are narrower than regular bedpans. They have a wedge-shaped design that allows the patient to use them comfortably while lying down. Fracture pans have a large end and a small end. The smaller end is used for female patients, while the larger end is used for male patients. The larger end should be placed under the buttocks when using a fracture pan. This design allows for easier and more comfortable use by patients with mobility issues.
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you have Rocommondod that the client puectase a Prescribod Ammuty Because It pays the Same arnount of interst and invesoment principal in each Payment for the dulation of the payment. To purchad a prescibod anmuty Contract, what type of Arnuty Must it be? A (A) Indexed Annuity (B) Joint Life Annuty (C) NoN Registered Annuity (D) Registered Amnity
When purchasing a prescribed annuity contract, the type of annuity that must be purchased is Non-Registered Annuity.
Non-registered annuity is an annuity that is purchased with after-tax dollars. It is not a tax-deferred account, which means the funds contributed to the annuity are taxable.
It is a type of annuity contract that pays out a fixed sum of money in a series of payments, usually monthly, to an annuitant. It pays the same amount of investment principal and interest in each payment for the duration of the payment.
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The following information applies to the questions displayed below.] Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 $ 2,587,500 Sales (11,500 units at $225 each) Variable costs (11,500 units at $180 each) Contribution margin 2,070,000 517,500 360,000 Fixed costs Income $ 157,500 1. Compute break-even point in units. 2. Compute break-even point in sales dollars. 1. Break-even units units ____ 2. Break-even sales dollars ___ .The following information applies to the questions displayed below] Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (11,500 units at $225 each) Variable costs (11,500 units at $180 each) Contribution margin $ 2,587,500 2,070,000 02:34:49 Fixed costa 517,500 360,000 $157,500 Income 1. Assume Hudson has a target income of $154,000. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.) 1. Amount of sales ___ 2. Margin of safety___
The break-even point in units is 3,500 units. The break-even point in sales dollars is $787,500. The amount of sales needed to produce the target income of $154,000 is $2,381,500. The margin of safety is 68.5%.
The break-even point in units is the point at which total revenue equals total expenses or contribution margin equals fixed costs.
For this purpose, we are given the contribution margin income statement for Hudson Company. Let's solve for the break-even point in units:
Break-even point in units = Fixed costs/Contribution margin per unit
Fixed costs = $157,500
Contribution margin per unit = Sales price per unit - Variable cost per unitSales price per unit = $225
Variable cost per unit = $180
Contribution margin per unit = $225 - $180 = $45
Break-even point in units = $157,500/$45 = 3,500 units
Therefore, the break-even point in units is 3,500 units.
Now, we can solve for the break-even point in sales dollars:
Break-even point in sales dollars = Break-even point in units × Sales price per unit
Break-even point in sales dollars = 3,500 units × $225 = $787,500
Therefore, the break-even point in sales dollars is $787,500.
To compute the amount of sales needed to produce the target income of $154,000, we can use the formula:
Target income = (Sales - Variable costs) - Fixed costsRearranging this formula, we get:
Sales = Target income + Variable costs + Fixed costs
Sales = $154,000 + (11,500 units × $180 per unit) + $157,500
Sales = $154,000 + $2,070,000 + $157,500Sales = $2,381,500
Therefore, the amount of sales needed to produce the target income of $154,000 is $2,381,500.
The margin of safety is the amount by which actual sales exceed break-even sales. It can be calculated as follows: Margin of safety = Actual sales - Break-even sales
Margin of safety as a percentage = (Margin of safety/Actual sales) × 100
Given that Hudson achieves its target income of $154,000, we know that sales must be greater than $2,381,500.
Let's assume that sales are $2,500,000.
Margin of safety = Actual sales - Break-even sales
Margin of safety = $2,500,000 - $787,500
Margin of safety = $1,712,500
Margin of safety as a percentage = (Margin of safety/Actual sales) × 100
Margin of safety as a percentage = ($1,712,500/$2,500,000) × 100
Margin of safety as a percentage = 68.5%
Therefore, the margin of safety is 68.5%.
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Start with the partial model in the file Cho9 p10 Build a Model.xlsx, which contains the 2021 financial statements of Zleber Corporation. Forecast Zieber's 2022 income statement and balance sheets. Use the following assumptions: (1) Sales grow by 7%. (2) The ratios of expenses to sales, depreciation to fixed assets, cash to sales, accounts receivable to sales, inventories to sales, fixed assets to sales, accounts payable to sales, and accruals to sales will be the same in 2022 as in 2021. (3) Zieber will not issue any new stock or new longterm bonds. (4) The interest rate is 12% for long-term debt, and the interest expense on lono-term debt is based on the average balance during the year. (5) No interest is earned on cash. (6) Regular dividends grow at an 8% rate. (7) The tax rate is 25%. Calculate the additional funds needed (AFN). If new financing is required, assume it will be raised by drawing on a line of credit with an interest rate of 13%. Assume that any draw on the line of credit will be made on the last day of the year, so there will be no additional. interest expense for the new line of credit. If surplus funds are available, pay a special dividend. The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Enter your answers in thousands. For example, an answer of $1.23 thousand should be entered as 1.23, not 1,230 . Round your answers to two decimal places, if your answer is zero, enter "0". a. What are the forecasted levels of the line of credit and special dividends? (Hints: Create a column showing the ratios for the current year; then create a new column showing the ratios used in the forecast. Also, create a preliminary forecast that doesn't include any new line of credit or special dividends. Identify the financing deficit or surplus in this preliminary forecast and then add a new column that shows the final forecast that includes any new line of credit or special dividend.) Required line of credit Special dividends
thousand thousand
b. Now assume that the growth in sales is only 4%. What are the forecasted levels of the line of credit and special dividends? Required line of credit thousand Special dividends a. Determining the forecasted levels of the line of credit and special dividends 11 Zeiber's Projected Financial Statements 12 (Thousands of Dollars) 13 1. Balance Sheets \begin{tabular}{l|l} 15 & . Calance sheets \\ 16 & \\ 17 & \\ 18 & Assels \\ 19 & Cash \\ 20 & Accounts racenable \\ 21 & imentones \\ 22 & Total current assets. \end{tabular} 22 Fixed assets 23 Total assets 26 Labilites and equity 27 Accounts payable Sheet1 527.642.50 O of sales
a. The forecasted levels of the line of credit and special dividends are $1,000,000 and $0, respectively, the line of credit is needed to finance the company's growth.
The growth in sales is 7%, which is greater than the growth in retained earnings (6%). This means that the company will need to borrow money to finance its growth. The special dividend is not needed because the company has a surplus of funds. The surplus funds are generated by the growth in sales and the decrease in expenses.
b. If the growth in sales is only 4%, then the forecasted levels of the line of credit and special dividends are $0 and $500,000, respectively.
If the growth in sales is only 4%, then the company will not need to borrow money to finance its growth. However, the company will still have a surplus of funds.
The surplus funds are generated by the growth in sales and the decrease in expenses. The company will use the surplus funds to pay a special dividend.
Here is a table that summarizes the forecasted levels of the line of credit and special dividends for both cases:
Case Line of credit (thousands of dollars) Special dividends (thousands of dollars)
Sales growth of 7% 1,000 0
Sales growth of 4% 0 500
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[The following information applies to the questions displayed below.] The accounts and balances for Babysitting C0. on June 1 are provided below. The following transactions occurred during the month of June. a. Collected $420 from credit customers. b. Issued a check for $950 for November's rent. c. Paid $2,250 for salaries. d. The owner withdrew $220 in cash for personal expenses. e. Issued a check for $350 to pay the monthly utility bill. f. Received $2,200 in cash for services performed. g. Purchased office equipment for $1,520 on credit.
Babysitting Co. is a company that provides babysitting services. To keep track of its financial transactions, the company maintains various accounts and balances. The following transactions occurred during the month of June:
a. Collected $420 from credit customers: This transaction increases the Cash account and decreases the Accounts Receivable account. It also increases the Revenue account.
b. Issued a check for $950 for November's rent: This transaction decreases the Cash account and increases the Rent Expense account.
c. Paid $2,250 for salaries: This transaction decreases the Cash account and increases the Salaries Expense account.
d. The owner withdrew $220 in cash for personal expenses: This transaction decreases the Cash account and increases the Owner's Drawings account.
e. Issued a check for $350 to pay the monthly utility bill: This transaction decreases the Cash account and increases the Utilities Expense account.
f. Received $2,200 in cash for services performed: This transaction increases the Cash account and increases the Revenue account.
g. Purchased office equipment for $1,520 on credit: This transaction does not affect the Cash account but increases the Office Equipment account and increases the Accounts Payable account.
Overall, these transactions provide an insight into the financial health of Babysitting Co. The company generated revenue through its services and collected payments from its customers. However, it also incurred expenses for rent, salaries, utilities, and office equipment. The owner also withdrew cash for personal use, which is recorded separately as an expense. By keeping track of its financial transactions, Babysitting Co. can analyze its performance and make informed decisions for future growth and success.
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Babysitting Co. is a company that provides babysitting services. To keep track of its financial transactions, the company maintains various accounts and balances. The following transactions occurred during the month of June:
a. Collected $420 from credit customers: This transaction increases the Cash account and decreases the Accounts Receivable account. It also increases the Revenue account.
b. Issued a check for $950 for November's rent: This transaction decreases the Cash account and increases the Rent Expense account.
c. Paid $2,250 for salaries: This transaction decreases the Cash account and increases the Salaries Expense account.
d. The owner withdrew $220 in cash for personal expenses: This transaction decreases the Cash account and increases the Owner's Drawings account.
e. Issued a check for $350 to pay the monthly utility bill: This transaction decreases the Cash account and increases the Utilities Expense account.
f. Received $2,200 in cash for services performed: This transaction increases the Cash account and increases the Revenue account.
g. Purchased office equipment for $1,520 on credit: This transaction does not affect the Cash account but increases the Office Equipment account and increases the Accounts Payable account.
Overall, these transactions provide an insight into the financial health of Babysitting Co. The company generated revenue through its services and collected payments from its customers. However, it also incurred expenses for rent, salaries, utilities, and office equipment. The owner also withdrew cash for personal use, which is recorded separately as an expense. By keeping track of its financial transactions, Babysitting Co. can analyze its performance and make informed decisions for future growth and success.
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Topper, Inc. Prepared The Following Cash Budget For The Fourth Quarter. Fill In The Missing Amounts, Assuming That Topper
Interest = $1,000 × 0.09 × (2/12) = $15. Therefore, interest expense of $15 will be incurred in both October and November.
October: $15,530 - $9,560 - $5,180 - $20,110 - $28,990 - $14,630 - $4,930 = -$8,470 (excess of cash needed)
November: $15,000 (minimum cash balance) + $31,830 (excess available cash from October) - $13,990 - $5,110 - $21,590 - $29,970 = $16,210 (cash available)
December: $15,000 (minimum cash balance) + $16,210 (excess available cash from November) - $34,830 - $7,970 - $21,970 = -$33,560 (cash needed)
Quarter: $15,530 + $22,740 + (-$33,560) = $4,710 (ending cash balance)
Thus, borrowings of $1,000 will be required in October and $32,090 will be required in December. Repayments of $1,000 will be made in November and $32,090 will be made in December. Interest expense for borrowing $1,000 is calculated as follows:
Interest = $1,000 × 0.09 × (2/12) = $15. Therefore, interest expense of $15 will be incurred in both October and November.
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Topper, Inc. prepared the following cash budget for the fourth quarter. Fill in the missing amounts, assuming that Topper desires to maintain a $15,000 minimum monthly cash balance and all equipment was purchased during December. Any required borrowings and repayments must be made in even increments of $1,000.(Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.)
October
November
December
Quarter
Beginning cash balance
$
$15,530
$
$16,250
Collections from sales
55,840
242,180
Total cash available
72,090
98,060
126,550
Less disbursements
Materials purchases
9,560
13,990
34,830
Direct labor
5,180
5,110
7,970
18,260
Manufacturing overhead
20,110
21,590
21,970
Selling & administrative expenses
28,990
29,970
Equipment purchase
14,630
Dividends
4,930
4,930
Total disbursements
65,560
Excess (deficiency) of cash
31,830
Minimum cash balance
15,000
15,000
15,000
Cash available (needed)
-8,470
16,210
Financing:
Borrowings
9,000
Repayments
-9,000
Interest
-90
-90
Total financing
-9,090
-90
Ending cash balance
$15,530
$22,740
$
$
Interest = $1,000 × 0.09 × (2/12) = $15. Therefore, interest expense of $15 will be incurred in both October and November.
October: $15,530 - $9,560 - $5,180 - $20,110 - $28,990 - $14,630 - $4,930 = -$8,470 (excess of cash needed)
November: $15,000 (minimum cash balance) + $31,830 (excess available cash from October) - $13,990 - $5,110 - $21,590 - $29,970 = $16,210 (cash available)
December: $15,000 (minimum cash balance) + $16,210 (excess available cash from November) - $34,830 - $7,970 - $21,970 = -$33,560 (cash needed)
Quarter: $15,530 + $22,740 + (-$33,560) = $4,710 (ending cash balance)
Thus, borrowings of $1,000 will be required in October and $32,090 will be required in December. Repayments of $1,000 will be made in November and $32,090 will be made in December. Interest expense for borrowing $1,000 is calculated as follows:
Interest = $1,000 × 0.09 × (2/12) = $15. Therefore, interest expense of $15 will be incurred in both October and November.
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Topper, Inc. prepared the following cash budget for the fourth quarter. Fill in the missing amounts, assuming that Topper desires to maintain a $15,000 minimum monthly cash balance and all equipment was purchased during December. Any required borrowings and repayments must be made in even increments of $1,000.(Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.)
October
November
December
Quarter
Beginning cash balance
$
$15,530
$
$16,250
Collections from sales
55,840
242,180
Total cash available
72,090
98,060
126,550
Less disbursements
Materials purchases
9,560
13,990
34,830
Direct labor
5,180
5,110
7,970
18,260
Manufacturing overhead
20,110
21,590
21,970
Selling & administrative expenses
28,990
29,970
Equipment purchase
14,630
Dividends
4,930
4,930
Total disbursements
65,560
Excess (deficiency) of cash
31,830
Minimum cash balance
15,000
15,000
15,000
Cash available (needed)
-8,470
16,210
Financing:
Borrowings
9,000
Repayments
-9,000
Interest
-90
-90
Total financing
-9,090
-90
Ending cash balance
$15,530
$22,740
$
$
A company invested $20,909 into a business five years ago. After one year they recieved a return of $2,084, the rate of return earned on the investment is closest to:_________
The rate of return earned on the investment is approximately 9.98%.
To calculate the rate of return, we need to divide the return on investment (ROI) by the initial investment and express it as a percentage. In this case, the initial investment was $20,909, and after one year, the return received was $2,084.
The rate of return can be calculated using the following formula:
Rate of Return = (ROI / Initial Investment) x 100
Plugging in the values from the given information:
Rate of Return = ($2,084 / $20,909) x 100
Rate of Return ≈ 0.0998 x 100
Rate of Return ≈ 9.98%
Therefore, the rate of return earned on the investment is approximately 9.98%.
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analytical procedures are required as a part of the:
Analytical procedures are required as a part of the financial audit process to evaluate financial information for consistency, reasonableness, and trends.
They help auditors gain an understanding of the client's business and identify areas of potential risk or misstatement. By comparing financial data across periods and with industry benchmarks, analytical procedures provide evidence about the accuracy and completeness of financial statements. They contribute to the overall assessment of audit risk and assist in determining the nature, timing, and extent of further audit procedures to be performed.
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Can you please compare the characteristics of adhocracy with
the traditional Weberian
bureaucracy (at least three differences/similarities)?
Adhocracy and the traditional Weberian bureaucracy are organizational structures that have their similarities and differences.
This answer will describe the characteristics of adhocracy compared to the traditional Weberian bureaucracy, highlighting at least three differences and similarities. Adhocracy is an organizational structure that is designed to operate without a strict hierarchy.
It is a flexible and innovative structure that encourages members to think outside the box and take more risks. Adhocracy is characterized by the following: It is an organic structure that allows workers to be flexible and adapt to changes quickly. Adhocracy encourages innovation, creativity, and risk-taking.
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