An auditor's affinity for and identification with the audit profession is referred to as professional identity. This term captures the sense of belonging and attachment that an individual feels towards their profession.
The correct answer is B. Professional identity. An auditor's professional identity refers to their sense of belonging and connection to their chosen profession. This sense of identification is important as it impacts their job satisfaction, motivation, and commitment to the organization they work for. Professional identity can be developed through various means such as education, training, and experience. An auditor who is proud of their profession and sees themselves as a valuable contributor to the field is likely to be more committed and motivated in their work. It is important for auditors to maintain a strong professional identity to ensure that they remain ethical and objective in their work. This can help to uphold the integrity of the audit profession and ensure that auditors continue to provide valuable services to organizations. In summary, an auditor's professional identity is a crucial aspect of their profession that impacts their commitment to the organization and colleagues they work with.B. Professional identity In this case, it represents the auditor's dedication to maintaining the high standards and ethical principles associated with the audit profession.
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Suppose the following list of events describes all of the economic activity resulting from an increase in government spending. Suppose that at each step after the initial one, the marginal propensity to consume is 0.85 and the tax rate is 20%. Step 0. The government spends $8000 on meat to host a very large dinner for foreign diplomats. Step A. The butcher takes the income earned by selling the meat, saves some, and spends the rest on a wedding cake for his daughter. Step B. The baker who produced the wedding cake saves some of her earnings and uses the rest to purchase beautiful candlesticks as gifts for all of her friends. Step C. The local candlestick maker saves some of his revenue for retirement and spends the rest on building materials to improve his house. Instructions: Modify the settings in the interactive tool to represent this event. Then click "Spending Rounds and use the table to answer the following questions. Round answers to the nearest cent, if necessary. How much does the baker earn for selling the cake? $ wwwwwww. How much does the candlestick maker spend on building materials? $(
Based on the given scenario, the initial government spending is $8000.
Step A: The butcher receives this income and saves some of it, which means he spends the rest. As the marginal propensity to consume is 0.85, he spends 0.85($8000) = $6800 on a wedding cake for his daughter.
Step B: The baker receives this income of $6800 for selling the cake. She saves some of it and spends the rest on beautiful candlesticks for her friends. So, she spends 0.85($6800) = $5780 on candlesticks.
Step C: The candlestick maker receives this income of $5780 and saves some of it, which means he spends the rest. He spends 0.85($5780) = $4913 on building materials for his house.
Therefore, the baker earns $6800 for selling the cake, and the candlestick maker spends $4913 on building materials.
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true or false,in monopolistic competition, a firm hopes advertising will either cause its demand curve to become more inelastic (get steeper) or cause demand for the firm's product to increase (shift to the right).
The statement is true. In monopolistic competition, a firm hopes advertising will either cause its demand curve to become more inelastic (get steeper) or cause demand for the firm's product to increase (shift to the right).
In monopolistic competition, firms often use advertising to differentiate their product from their competitors and create a perceived unique value to consumers. By doing so, they hope to make their demand curve more inelastic, meaning that even if they increase their prices, consumers will still be willing to pay for their product. Additionally, advertising can increase the demand for the firm's product by shifting the demand curve to the right, indicating that more consumers are willing to buy the product at a given price.
The statement is true. In monopolistic competition, a firm hopes advertising will either cause its demand curve to become more inelastic (get steeper) or cause demand for the firm's product to increase (shift to the right). Advertising can help differentiate the firm's product from competitors, allowing it to charge a higher price or attract more customers.
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Financial markets in 2022 are concerned with the return of inflation and the interest rate policy followed by central banks. Compare the interest rate policy of leading central banks now and twenty years ago?
In 2022, financial markets are indeed concerned about the return of inflation and the interest rate policy followed by central banks. Comparing the interest rate policy of leading central banks now and twenty years ago, we can see significant differences.
Twenty years ago, many central banks had relatively high interest rates to combat inflation. For example, the Federal Reserve's interest rate in January 2002 was 1.75%, while the European Central Bank's rate was 3.25%.
Nowadays, many central banks have lowered their interest rates significantly to stimulate economic growth, even before the pandemic.
The Federal Reserve's interest rate in January 2022 is 0.75%, while the European Central Bank's rate is -0.5%. These low-interest rates have been supported by quantitative easing programs and other unconventional monetary policies.
However, some central banks, such as the Reserve Bank of Australia and the Bank of England, have raised their interest rates to prevent overheating economies and to control inflation.
Therefore, the interest rate policy followed by central banks today is different from twenty years ago, reflecting changing economic conditions and central banks' priorities.
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. Private inurement means, amongst other things, that the board of directors needs to watch out for conflicts of interest amongst the board members so that they do not vote on matters concerning themselves.
True or False?
Answer: TRUE
Hi! The statement "Private inurement means, amongst other things, that the board of directors needs to watch out for conflicts of interest amongst the board members so that they do not vote on matters concerning themselves" is True. Private inurement refers to the prohibition of nonprofit organizations from using their income or assets to unduly benefit individuals who have control or influence over the organization, such as board members. The board of directors must be vigilant in identifying and addressing conflicts of interest to ensure they are acting in the organization's best interests and complying with private inurement regulations.
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Points: 4 x 3 = 12 1. Suppose you collected the following information of ABC corp. from the financial statements published in 2019. Entry 2018 Total Current Assets 1405000 1206000 2019 Current Liabilities 602000 571500 Notes Payable 476990 457912 Earning before Interest and 97680 Taxes 159000 Depreciation Capital expenditures 20000 Tax rate 20% stimate the Free Cash Flow available for ABC corp. at the end of 2019.
The Free Cash Flow available for ABC Corp. at the end of 2019 is -41,300.
To estimate the Free Cash Flow (FCF) available for ABC Corp. at the end of 2019, you need to follow these steps:
1. Calculate the change in net working capital:
2019 Total Current Assets - 2019 Current Liabilities = 1,405,000 - 602,000 = 803,000
2018 Total Current Assets - 2018 Current Liabilities = 1,206,000 - 571,500 = 634,500
Change in Net Working Capital = 803,000 - 634,500 = 168,500
2. Calculate the operating income after taxes (OIAT):
Operating Income (Earnings before Interest and Taxes) = 159,000
Tax Rate = 20%
Taxes = 159,000 * 20% = 31,800
OIAT = 159,000 - 31,800 = 127,200
3. Calculate the depreciation:
Depreciation = 20,000
4. Calculate the capital expenditures:
Capital Expenditures = 20000
5. Calculate the Free Cash Flow:
FCF = OIAT + Depreciation - Change in Net Working Capital - Capital Expenditures
FCF = 127,200 + 20,000 - 168,500 - 20,000
FCF = 147,200 - 188,500
FCF = -41,300
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If the unit sales price is $18 and variable costs are $10, how many units have to be sold to earn a profit of $3,200 if fixed costs equal $18,000? a. 2,650 units b. 18,400 units C. 2,250 units d. 400 units
2,650 units must be sold in order to generate a $3,200 profit. Having a unit sales price of $18, variable expenses of $10, and $18000 in fixed costs. The correct option is a.
1. Calculate the contribution margin per unit by subtracting variable costs from the unit sales price: $18 - $10 = $8.
2. Calculate the total profit needed to cover fixed costs and earn the desired profit of $3,200: $18,000 (fixed costs) + $3,200 (desired profit) = $21,200.
3. Divide the total profit needed by the contribution margin per unit to find the number of units needed to be sold: $21,200 / $8 = 2,650 units.
Therefore, to earn a profit of $3,200 with the given information, 2,650 units must be sold (Option a).
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juliet is concerned with the potential for political harassment when her company enters a new international market. to reduce the risk of political harassment, she is most likely to consider using____to enter the market.(1 point)
Juliet is concerned with the potential for political harassment when her company enters a new international market. To reduce the risk of political harassment, she is most likely to consider using a joint venture to enter the market. (1 point)
Political harassment refers to the use of power, authority, or influence to harm, intimidate, or discriminate against individuals or groups based on their political beliefs, affiliations, or activities. It can take many forms, such as physical violence, verbal abuse, intimidation, discrimination, or legal harassment, and it is often used as a means to silence or suppress political opposition or dissent. Political harassment is a violation of human rights and undermines democracy, freedom of expression, and the rule of law. It is a serious issue that affects individuals, civil society, and political institutions and requires effective measures to prevent and address it.
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Every member of an organization's InfoSec department must have a formal degree or certification in information security. (True or False)
False. The answer is that not every member of an organization's InfoSec department must have a formal degree or certification in information security.
While having such qualifications can certainly be helpful, there are many individuals who have gained expertise in the field through practical experience, self-study, or other means. However, it is important for organizations to ensure that their InfoSec team as a whole possesses the necessary skills and knowledge to effectively protect the organization's information and systems.
While having a formal degree or certification in information security can be beneficial, it is not a strict requirement for every member of an organization's InfoSec department. Some members may have valuable experience or skills in related fields that contribute to the team's overall effectiveness in securing information systems.
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are the total requests for a page for the initial approach.
The total requests for a page refers to the number of resource requests that are made when a user visits a particular webpage.
When a user visits a webpage, the browser sends requests for various resources such as HTML, CSS, JavaScript, images, videos, and other files that are needed to display the content. The total number of these requests determines the overall performance of the webpage.
A high number of requests can slow down the page loading time and affect user experience. Therefore, website developers often aim to reduce the number of requests by optimizing the code and compressing files.
In summary, the total requests for a page are crucial to the performance and user experience of a website. Developers should aim to minimize the number of requests to improve page loading speed and enhance user satisfaction.
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For more complex tasks, relatively long rest periods appear to be beneficial for learning.
True or False
False. For more complex tasks, relatively short rest periods appear to be more beneficial for learning.
Research in cognitive psychology has shown that taking short rest periods during a learning session can help to improve retention and recall of the material being learned. This phenomenon is known as the "spacing effect" or "distributed practice." Rather than trying to learn everything all at once in a single session, spacing out learning over several shorter sessions with breaks in between can help to consolidate memories and make them stronger. For complex tasks that require more attention and cognitive resources, shorter rest periods (e.g. 5-10 minutes) are typically more effective than longer rest periods. However, for simple tasks that are less demanding, longer rest periods (e.g. 15-20 minutes) may be more beneficial. Overall, taking regular breaks during a learning session can help to improve memory consolidation and retention, leading to better long-term learning outcomes.
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Suppose a panel of economists is predicting that a nation's real GDP per capita will double in approximately 10 years. Based upon the Rule of 70, what must be predicted annual growth rate of real GDP per capita?
A.
140%
B.
7%
C.
2.85%
D.
14%
E.
5%
Based on the Rule of 70, if a nation's real GDP per capita is predicted to double in approximately 10 years, we can find the predicted annual growth rate of real GDP per capita using the formula: 70 / years to double = annual growth rate. In this case, we have: 70 / 10 years = 7%
So the predicted annual growth rate of real GDP per capita is 7%. The correct answer is B. 7%. The Rule of 70 is a quick and easy way to estimate the number of years it will take for a variable to double, given its annual growth rate. The Rule of 70 is calculated by dividing 70 by the annual growth rate, as a percentage.
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Delicious Foods manufactures various types of ice cream that feature pistachios. Foodie Company has approached Delicious Foods with a proposal to sell the company its top selling ice cream at a price of $22,000 for 10,000 pounds. The costs shown are associated with production of 10,000 pounds of ice cream:
Cost Information
Cost Type Costs
Direct Materials $13,000
Direct Labor $5,000
Variable Overhead $5,000
Fixed Overhead $2,000
No fixed overhead costs are avoidable. If Delicious Foods accepts the offer, by how much will net income increase (decrease)?
Group of answer choices
$2,000
$1,000
$3,000
$(3,000)
($7,000)
The Net Income increase by $(3,000).
Explanation:
To determine the net income increase (or decrease) if Delicious Foods accepts the offer from Foodie Company, we need to analyze the costs associated with the production of 10,000 pounds of ice cream and compare it with the proposed selling price. Here's a step-by-step explanation:
1. Calculate the total production cost, which includes direct materials, direct labor, variable overhead, and fixed overhead costs:
Direct Materials: $13,000
Direct Labor: $5,000
Variable Overhead: $5,000
Fixed Overhead: $2,000
Total Production Cost = $13,000 + $5,000 + $5,000 + $2,000 = $25,000
2. Compare the total production cost with the proposed selling price:
Selling Price: $22,000
Total Production Cost: $25,000
3. Calculate the net income increase (or decrease):
Net Income Change = Selling Price - Total Production Cost
Net Income Change = $22,000 - $25,000
Net Income Change = - $3,000
If Delicious Foods accepts the offer, the net income will decrease by $3,000. So, the answer is:
($3,000)
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The average annual salary for someone with an associate's degree is approximately:
a. $34,000
b. $44,000
c. $57,000
The answer to your question is that the average annual salary for someone with an associate's degree is approximately $44,000. This amount can vary depending on the specific field of study, location, and years of experience, among other factors.
In general, having an associate's degree can provide individuals with better career prospects and earning potential compared to those with just a high school diploma. It can also serve as a stepping stone towards earning a higher degree, such as a bachelor's or master's degree.
Some of the highest paying careers for those with an associate's degree include dental hygienist, respiratory therapist, and occupational therapy assistant. However, it's important to keep in mind that salaries can vary widely within each field and that experience and additional certifications or credentials can also impact earning potential.
Overall, obtaining an associate's degree can be a wise investment in one's education and future career prospects. While it may not guarantee a high salary, it can provide individuals with valuable skills and knowledge that can lead to greater job opportunities and earning potential.
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rocky owns and operates balboa's gym located in philadelphia. the following transactions occur for the month of october: 1. october 2 receive membership dues for the month of october totaling $7,900. 2. october 5 issue common stock in exchange for cash, $11,000. 3. october 9 purchase additional boxing equipment for $9,000, paying one-half of the amount in cash and issuing a note payable to the seller for the other one-half due by the end of the year. 4. october 12 pay $1,400 for advertising regarding a special membership rate available during the month of october. 5. october 19 pay dividends to stockholders, $3,800. 6. october 22 pay liability insurance to cover accidents to members for the next six months, starting november 1, $6,000. 7. october 25 receive cash in advance for november memberships, $5,000. 8. october 30 receive, but do not pay, utilities bill for the month, $4,600. 9. october 31 pay employees' salaries for the month, $6,700. 3. assume the balance of cash at the beginning of october is $16,000. post each cash transaction to the cash t-account.
The Cash T-Account with the given transactions posted in the month of October are as follows:
Date Transaction Debit Credit Balance
Oct 1 Membership dues received $7,900 $23,900
Oct 5 Issued common stock $11,000 $12,900
Oct 9 Purchased additional equipment $4,500 $4,500 $8,400
Oct 12 Paid for advertising $1,400 $7,000
Oct 19 Paid dividends $3,800 $3,200
Oct 22 Paid liability insurance $6,000 $200
Oct 25 Received cash in advance $5,000 $5,200
Oct 30 Utilities bill received $4,600 $600
Oct 31 Paid employees' salaries $6,700 ($6,100)
Note that negative balance in the final balance for October 31st means that the company had negative cash at the end of the month, which is not a desirable situation.
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Suppose the government imposes a price floor on cheese. The price floor is currently non-binding. Which of the following events could transform that non-binding price floor into a binding price floor?a. Cheese and crackers are complements and the price of crackers increases.b. The price of milk, a main ingredient in making cheese, decreases.c. Cheese is a normal good and the income of cheese buyers increases.d. An ad campaign about the benefits of consuming dairy products proves to be very successful.e. The number of cheese producers increases.
The event that could transform the non-binding price floor into a binding price floor is option E - the number of cheese producers increases.
As the number of producers increases, the supply of cheese will also increase, which can lead to a surplus of cheese. To avoid this surplus, producers may need to sell their cheese at a lower price, which can then make the previously non-binding price floor become binding. Options A, B, C, and D are not directly related to the supply and demand of cheese, and therefore, would not have a significant impact on the bindingness of the price floor.
Suppose the government imposes a non-binding price floor on cheese. An event that could transform this non-binding price floor into a binding price floor is option (a): Cheese and crackers are complements and the price of crackers increases. This event would likely decrease the demand for cheese, causing the equilibrium price to fall. If the equilibrium price falls below the price floor, the price floor becomes binding, resulting in a surplus of cheese in the market.
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Out of the given choices, the occasion that seems to change a non-binding price floor on cheese into an official price floor is option A). Cheese and wafers are complements, and the cost of wafers increments.
Why is option A the right choice?On the off chance that cheese and wafers are complements, meaning they are frequently devoured together, an increment within the cost of wafers would diminish the request for wafers.
Subsequently, this would lead to a diminish in the request for cheese as well.
With a lower request for cheese, the non-binding cost floor may be gotten to be authoritative as the showcase cost falls underneath the cost floor level.
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Mean Mugs, a custom mug company, creates a strategic plan to be the leader in the product category within a perlod of three years. The company's middle management also creates a six-month plan to ensure that the objectives of the strategic plan are property implemented. The six-month plan created by Mean Mugs can be regarded as Multiple Choice static plan an operational plan an executive level plan a tactical plan contingency plan
Mean Mugs, a custom mug company, has created a strategic plan with the goal of becoming the leader in their product category within a three-year period. A strategic plan is a long-term plan that outlines the goals, objectives, and actions needed to achieve them. It provides a roadmap for the organization to follow in order to achieve its desired outcomes.The right answer is operational plan i.e. option B.
To ensure that the objectives of the strategic plan are properly implemented, the company's middle management team has created a six-month plan. This plan is known as an operational plan, as it outlines the specific actions and steps that will be taken to achieve the objectives of the strategic plan. An operational plan is a short-term plan that details the day-to-day activities and processes that will be put in place to achieve the goals outlined in the strategic plan.
By creating an operational plan, Mean Mugs is able to ensure that they are staying on track with their strategic plan and that all necessary actions are being taken in a timely and effective manner. The operational plan provides a framework for the organization to follow and allows for adjustments to be made as needed in order to achieve the desired outcomes.
In summary, Mean Mugs has created a strategic plan with a three-year timeline to become the leader in their product category, and their middle management team has created an operational plan with a six-month timeline to ensure that the objectives of the strategic plan are properly implemented. Thus, the option B is the right one.
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while there are many routes to competitive advantage, the two biggest factors that distinguish one competitive strategy from another are
a.whether a company's overall costs are lower than a competitors' and whether the company can achieve strong product differentiation. b.whether a company can offer the lowest possible prices and whether the company can get the best suppliers in the market. c.whether a company's target market is broad or narrow and whether the company is pursuing a low cost or differentiation strategy. d.whether a company can achieve lower costs than its rivals and whether the company is pursuing the industry's sales and market share leader's role. e.whether a company can build a brand name and an image that buyers trust.
The two biggest factors that distinguish one competitive strategy from another are whether a company's overall costs are lower than its competitors' and whether the company can achieve strong product differentiation. The correct option is a.
Companies can achieve a competitive advantage by either offering the lowest possible prices or by differentiating their products or services from those of their competitors. When a company can produce goods or services at a lower cost than its competitors, it can pass those savings on to its customers and offer lower prices, thus gaining a cost advantage.
Alternatively, companies can differentiate their products or services by offering unique features, high quality, superior customer service, or by building a strong brand name and image that buyers trust. A company can also achieve a competitive advantage by focusing on a narrow target market or pursuing a low-cost or differentiation strategy.
Ultimately, the key to achieving a sustainable competitive advantage is to continuously improve and innovate, to stay ahead of the competition. The correct option is a. whether a company's overall costs are lower than a competitors' and whether the company can achieve strong product differentiation.
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marginal cost equals responses a the change in total cost given a one-unit change in output.the change in total cost given a one-unit change in output. b fixed costs minus variable costs.fixed costs minus variable costs. c average total cost given a one-unit change in output.average total cost given a one-unit change in output. d total cost per unit of output.
A) Marginal cost is the change in total cost that results from producing one additional unit of output.
In other words, it is the cost of producing one more unit of a good or service. This includes both variable and direct costs, such as labor and materials. Marginal cost is important for businesses to consider because it helps them determine the optimal level of production where the cost of producing one more unit is equal to the revenue generated by selling that unit.
Option A is answer.
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you have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $50,000. the truck falls into the macrs three-year class, and it will be sold after three years for $5,000. use of the truck will require an increase in nwc (spare parts inventory) of $2,000. the truck will have no effect on revenues, but it is expected to save the firm $25,000 per year in before-tax operating costs, mainly labor. the firm's marginal tax rate is 21 percent. what will the operating cash flow for this project be during year 2? multiple choice $22,225 $24,417 $21,890 $22,690
The operating cash flow for the project during year 2 can be calculated using the following steps:
1. Calculate the annual cost savings: $25,000
2. Calculate the tax savings: $25,000 * 21% = $5,250
3. Calculate the after-tax cost savings: $25,000 - $5,250 = $19,750
4. Calculate the annual depreciation: ($50,000 - $5,000) / 3 years = $15,000
5. For the second year, MACRS 3-year class allows for 32% depreciation, which is: $15,000 * 32% = $4,800
6. Calculate the depreciation tax shield: $4,800 * 21% = $1,008
7. Add the after-tax cost savings and the depreciation tax shield: $19,750 + $1,008 = $20,758
Therefore, the operating cash flow for the project during year 2 will be approximately $20,758. The closest answer choice is $21,890, but none of the provided options exactly match the calculated amount.
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At the beginning of the year the exchange rate between the Brazilian Real and the U.S. dollar is 3 Reals per dollar.Over the year, Brazilian inflation is 10% and US. inflation is 4%.If parity holds, at the end of one year, the exchange rate of Dollars per Real should equal which of the following?A) 0.2799B) 0.3327C) 2.8498D) 0.3145E) 0.3035
If parity holds, at the end of one year, the exchange rate of Dollars per Real should equal to: 0.3327. The answer is option B.
To answer this question, we need to consider the concept of purchasing power parity (PPP), which states that in the long run, the exchange rate between two currencies should equal the ratio of the price levels in each country.
In other words, if inflation in one country is higher than the other, the currency of that country should depreciate relative to the other.
Starting exchange rate: 3 R/USD
Brazilian inflation rate: 10% = 1.1
US inflation rate: 4% = 1.04
According to the purchasing power parity (PPP) theory, the exchange rate should adjust based on the inflation differential between two countries.
Therefore, the expected exchange rate at the end of the year can be calculated as:
Expected exchange rate = Starting exchange rate * (Inflation rate in Brazil/Inflation rate in the US)
Expected exchange rate = 3 * (1.1/1.04) = 3.177
However, this expected exchange rate is expressed as R/USD, and we need to express it as USD/R to match the given answer choices.
So, 1/Expected exchange rate = 1/3.177 = 0.3145
Thus, the answer is 0.3327.
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Complete question:
At the beginning of the year the exchange rate between the Brazilian Real and the U.S. dollar is 3 Reals per dollar.Over the year, Brazilian inflation is 10% and US. inflation is 4%.If parity holds, at the end of one year, the exchange rate of Dollars per Real should equal which of the following?
A) 0.2799
B) 0.3327
C) 2.8498
D) 0.3145
E) 0.3035
"can you please answer these parts and show work
Fred's Frankfurters posted an EBIT of 567,256. He paid 55,360 in interest and 57,521 in taxes. Calculate the interest tax shield a $575.35 b.5621.13 OCS534.99 d. $399.25 Oe. $593.89 Over the last year, sales at Dowmagale Department Store increased 10% und EBIT increased 5%. If the increase in earnings-per-share was 20%, what is the degree of total leverage? a4 Ob 2 Ocs Ods O e1 If sales increase 25%, EBIT increases 50%, debt increases 75%, and working capital increases 12.5%, what is the degree of operating leverage? a.2 6.5 OC Od4 1.6
a) 2, Fred's Frankfurters posted an EBIT of 567,256. After paying 55,360 in interest and 57,521 in taxes, we can calculate the interest tax shield.
The interest tax shield formula is: Interest Expense × Tax Rate.
To find the tax rate, we use the formula: Tax Rate = Taxes Paid / (EBIT - Interest Expense). Plugging in the values: Tax Rate = 57,521 / (567,256 - 55,360) ≈ 0.1146.
Now, we calculate the interest tax shield: 55,360 × 0.1146 ≈ $6,341.29. This value does not match any of the provided options.
For the degree of total leverage (DTL) question, we use the formula: DTL = (% change in EPS) / (% change in Sales). Plugging in the values: DTL = 20% / 10% = 2.
For the degree of operating leverage (DOL) question, we use the formula: DOL = (% change in EBIT) / (% change in Sales). Plugging in the values: DOL = 50% / 25% = 2.
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The following facts are for a non-cancellable lease agreement between Oriole Corporation and Russell Corporation, a lessee:Inception date July 1, 2020Annual lease payment due at the beginning of each year, starting July 1, 2020 $20,954.73Bargain purchase option price at end of lease term reasonably certain to be exercised by Russell $3,900.00Lease term 5 yearsEconomic life of leased equipment 10 yearsLessor’s cost $43,800.00Fair value of asset at July 1, 2020 $89,800.00Lessor’s implicit rate 10%Lessee’s incremental borrowing rate 10%The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties about costs that have not yet been incurred by the lessor. The lessee assumes responsibility for all executory costs. Both Russell and Oriole use IFRS 16.Required:Prepare a lease amortization schedule for the lease obligation using a computer spreadsheet for Russell Corporation for the five-year lease term. (Present value of an annuity of 1 for 5 years, 9% discounted rate is 4.23972 and single sum of present value is 0.64993).Prepare the journal entries on the lessee’s books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2020 and 2021. Russell’s annual accounting period ends on December 31, and Russell does not use reversing entries.
A journal entry is a financial record of a business transaction that is recorded in an accounting system. Lease amortization is the process of taking the intangible asset within a lease agreement and reducing its value based on the historical cost, economic lifetime value, as well as residual value.
To prepare the lease amortization schedule, we can use the following steps:
Determine the lease liability, which is the present value of the lease payments discounted at the lessee's incremental borrowing rate (10%) over the lease term (5 years). The lease liability is $95,275.41.Determine the right-of-use asset, which is equal to the lease liability plus any initial direct costs (in this case, there are none). The right-of-use asset is also $95,275.41.Prepare the lease amortization schedule by calculating the interest expense and the lease payment for each year. The interest expense is calculated by multiplying the lease liability at the beginning of the year by the lessee's incremental borrowing rate (10%). The lease payment is $20,954.73 for each year. The lease liability is reduced by the lease payment minus the interest expense each year.The journal entries to record the lease for 2020 and 2021 are as follows:
2020:
Right-of-use asset $95,275.41
Lease liability $95,275.41
To record the lease agreement
Lease liability $17,080.32
Cash $20,954.73
Interest expense $3,874.41
To record the first lease payment and interest expense
2021:
Lease liability $16,579.60
Interest expense $3,817.72
Cash $20,954.73
To record the lease payment and interest expense for year 2
In summary, the lease amortization schedule shows that the lease liability will be paid off by the end of the lease term, and the journal entries reflect the recognition of the right-of-use asset and the lease liability on the lessee's balance sheet, as well as the recognition of interest expense and lease payments on the income statement.
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On June 3, Shamrock Company sold to Chester Company merchandise having a sale price of $4,200 with terms of 2/10.160.co.. shipping point. An invoice totaling 594 terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for the balance due trom Chester Company, (a) Prepare journal entries on the Shamrock Company books to record all the events noted above under each of the following bases, (1) Sales and receivables are entered at gross selling price. Sales and receivables are entered at niet of cash discounts. (2) (if no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit No. Date Account Titles and Explanation (1) No. Date Account Titles and Explanation Debit Credit (1) June 12 (2) ( .
If sales and receivables are entered at gross selling price: Sales $4,200 ; If sales and receivables are entered at net of cash discounts: Sales $4,200.
On June 3, Shamrock Company sold merchandise to Chester Company for $4,200 with terms of 2/10, n/60, and the shipping point was 160.co. On June 8, an invoice from John Booth Transport Service for $594 was received for the freight cost, which was to be paid by Chester. On June 12, the balance due from Chester was paid by check.
(1) If sales and receivables are entered at gross selling price:
June 3: Accounts Receivable - Chester Company $4,200
Sales $4,200
June 8: Freight-In $594
Accounts Payable - John Booth Transport Service $594
June 12: Cash ($4,200 - $84 discount) $4,116
Sales Discount $84
Accounts Receivable - Chester Company $4,200
Freight-In $594
Sales $4,200
(2) If sales and receivables are entered at net of cash discounts:
June 3: Accounts Receivable - Chester Company $4,116
Sales $4,116
June 8: Freight-In $594
Accounts Payable - John Booth Transport Service $594
June 12: Cash $4,116
Accounts Receivable - Chester Company $4,116
Freight-In $594
Sales $4,200
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i. high short sale constraints predict lower returns in the future ii. short sale constraints may affect stock price patterns like ipo and spacs iii short sale constraints restrict pessimistic investors from freely expressing their negative views through short selling select all the true statements above.
Based on the provided statements, the following are true:
i. High short sale constraints predict lower returns in the future.
ii. Short sale constraints may affect stock price patterns like IPOs and SPACs.
These statements indicate that short sale constraints can have an impact on stock price patterns and future returns, by limiting the ability of pessimistic investors to express their negative views through short selling.
Short selling is a trading strategy where investors borrow shares of a company they believe will decline in price and sell them in the hope of buying them back at a lower price in the future, thereby profiting from the difference.
Short sale constraints refer to restrictions placed on short selling by regulatory bodies or stock exchanges, which can make it difficult for investors to engage in short selling.
Based on the provided statements, the first statement is true. High short sale constraints predict lower returns in the future. This is because short sale constraints limit the ability of pessimistic investors to express their negative views through short selling.
As a result, stocks that are subject to high short sale constraints may experience less downward pressure and have inflated prices. This can lead to lower returns in the future when the market realizes the true value of the stock and the constraints are lifted.
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Centre Black Company planned to produce 40,000 units of product and work at the 100,000 direct labour hours level of activity for 2020. Manufacturing overhead at this level of activity and the predetermined overhead rate is as follows:
Predetermined
Overhead Rate per
Direct Labour Hour
Variable manufacturing overhead $600,000 $6
Fixed manufacturing overhead 300,000 3
Total manufacturing overhead $900,000 $9
At the end of 2020, 44,000 units were actually produced and 107,400 direct labour hours were actually worked. Total actual manufacturing overhead costs were $950,000, of which $610,000 was variable.
Instructions
Calculate the following variances and indicate whether they are favourable or unfavourable:
a) Variable overhead budget variance.
b) Fixed overhead volume variance.
$34,400 is the favourable variance ; $22,200 is the unfavourable variance.
a) The variable overhead budget variance can be calculated as follows:
Variable overhead budget variance = (Actual hours worked x Predetermined overhead rate) - Actual variable overhead costs
= (107,400 x $6) - $610,000
= $644,400 - $610,000
= $34,400 (Favourable)
The favourable variance indicates that the actual variable overhead costs were lower than what was budgeted for.
b) The fixed overhead volume variance can be calculated as follows:
Fixed overhead volume variance = (Actual hours worked - Budgeted hours) x Predetermined fixed overhead rate
= (107,400 - 100,000) x $3
= 7,400 x $3
= $22,200 (Unfavourable)
The unfavourable variance indicates that the actual fixed overhead costs were higher than what was budgeted for due to the increase in actual hours worked.
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Renata Corporation purchased equipment in 2017 for $324,600 and has taken $146,070 of regular MACRS depreciation. Renata Corporation sells the equipment in 2019 for $194,760 What is the amount and character of Renata's gain or loss? Renata Corporation has a gain of ___of which Is ____ treated as ordinary income due to
Renata Corporation has a gain of $68,190 of which $31,215 is treated as ordinary income due to recapture of depreciation.
Renata Corporation purchased equipment in 2017 for $324,600 and has taken $146,070 of regular MACRS depreciation. Renata Corporation sells the equipment in 2019 for $194,760.
To determine the amount and character of Renata's gain or loss, follow these steps:
1. Calculate the adjusted basis of the equipment:
Adjusted basis = Original cost - Accumulated depreciation
Adjusted basis = $324,600 - $146,070
Adjusted basis = $178,530
2. Calculate the gain or loss on the sale of the equipment:
Gain or loss = Selling price - Adjusted basis
Gain or loss = $194,760 - $178,530
Gain or loss = $16,230
3. Determine the character of the gain or loss:
Since Renata Corporation has taken MACRS depreciation, the gain up to the amount of the depreciation taken is considered as ordinary income due to depreciation recapture.
In conclusion, Renata Corporation has a gain of $16,230, of which $16,230 is treated as ordinary income due to depreciation recapture.
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145. The lack of a good trainer may be the most serious flaw in training efforts. True False
True. The lack of a good trainer may be the most serious flaw in training efforts.
The effectiveness of any training effort depends largely on the quality of the trainer delivering the training. A good trainer should have the necessary knowledge and expertise in the subject matter, as well as strong communication and interpersonal skills to effectively convey information and engage learners.
If the trainer is not able to effectively communicate and engage learners, the training may be ineffective and may not achieve its intended goals. This can lead to a waste of resources and time, and may even have negative consequences for the organization or individuals being trained.
Therefore, it is essential to have a good trainer who is able to effectively deliver training content and engage learners to achieve the desired learning outcomes.
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that there is always exception to the rules that it is a non-consequentialist theory that the best act is the one that would be enjoined by whichever rule would yield the most utility. none of the above.
Based on your question, it seems you want an explanation that includes non-consequentialist theory, utility, and exception.
Non-consequentialist theory refers to ethical theories that determine the rightness or wrongness of an act based on factors other than its consequences. In contrast, consequentialist theories like utilitarianism focus on the outcomes, where the best act is the one that yields the most utility (happiness or well-being).
It's important to note that in non-consequentialist theories, there can be exceptions to rules. However, these exceptions are not determined by the utility they produce but rather by other factors, such as duty, rights, or virtue. Consequently, it is not accurate to say that a non-consequentialist theory supports the idea that the best act is the one that generates the most utility, as this is a consequentialist viewpoint.
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QS 20-30A (Algo) Merchandising: Computing merchandise purchases LO P4 Montel Company's July sales budget shows sales of 5680,000. The company budgets beginning merchandise inventory of $57,000 and ending merchandise inventory of $33,000 for July. Cost of goods sold is 40% of sales Determine the budgeted cost of merchandise purchases for July. Hint. Use the relation (Beginning Inventory Purchases - Cost of Goods Sold = Ending inventory) to solve for purchases Budgeted Cool of Mechanise Purchase
The budgeted cost of merchandise purchases for July is $203,200.
Based on the information provided, let's calculate the budgeted cost of merchandise purchases for July using the given terms and relation.
July sales: $568,000
Cost of goods sold (COGS): 40% of sales = 0.4 * $568,000 = $227,200
Beginning inventory: $57,000
Ending inventory: $33,000
Using the relation (Beginning Inventory + Purchases - Cost of Goods Sold = Ending Inventory), we can solve for purchases:
$57,000 + Purchases - $227,200 = $33,000
Now, let's solve for Purchases:
Purchases = $227,200 - $57,000 + $33,000
Purchases = $203,200
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when performing capital budgeting analysis on international projects, managers: select answer from the options below find it less difficult to estimate the incremental cash flows for foreign projects relative to domestic projects. have to deal with foreign exchange rate risk on international and domestic capital investments. must incorporate a country risk premium even when evaluating domestic business activities. must incorporate a country risk premium when evaluating foreign business activities.
When performing capital budgeting analysis on international projects, managers must incorporate a country risk premium when evaluating foreign business activities (Option D).
This is because international projects are subject to additional risks and uncertainties associated with the foreign country's political and economic environment, which may impact the project's cash flows and profitability. The country risk premium is used to adjust the discount rate used in the capital budgeting analysis to reflect the additional risk associated with the foreign investment.
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