An inverted yield curve indicates expected future interest rate decreases. A 4% tax-free rate equaling a 6% taxable rate implies a bond holder's tax rate of approximately 33%. Using the Gordon growth model with a $2 dividend, 2% dividend growth, and 6% required return, the stock's price is $50. With a 3% dividend growth and 5% required return due to Fed policy changes, the new stock price would be $100.
An inverted yield curve suggests future interest rate declines. A 4% tax-free rate equaling a 6% taxable rate implies a tax rate of about 33%. Using the Gordon growth model, a $2 dividend, 2% growth rate, and 6% required return, the stock's price is $50 ($2 / (0.06 - 0.02)).
In the revised scenario, with a 3% growth rate and 5% required return, the new stock price can be calculated as $2 / (0.05 - 0.03) = $100. The increase in dividend growth and decrease in required return result in a higher stock price.
To summarize, an inverted yield curve predicts lower interest rates. The bond holder's tax rate is approximately 33%. Using the Gordon growth model, the stock's price is $50 initially, and under the revised scenario, it increases to $100 due to higher dividend growth and a lower required return.
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Suppose that you wish to buy a new home that will cost you $420,000. You must put $80,000 down, and will finance the rest at 4.8% APR, making monthly payments for 30 years at the end of each month. How much of your second payment will be interest? <13541354−13561356−13581358−1360>1360
Based on the given conditions, we find that the interest portion of the second payment is $1,400. So, $1,400 is the overall portion of your second payment will be considered as interest.
To calculate the interest portion of the second payment, we need to consider the loan amount, the interest rate, and the payment schedule.
1. Loan amount:
The loan amount is the total cost of the home minus the down payment. In this case, it is $420,000 - $80,000 = $340,000.
2. Monthly interest rate:
The annual interest rate of 4.8% needs to be converted to a monthly interest rate by dividing it by 12. The monthly interest rate is 4.8% / 12 = 0.004.
3. Payment schedule:
The loan is being paid off over 30 years, which is equivalent to 30 * 12 = 360 monthly payments.
4. Interest portion of the second payment:
In the first month, the interest is calculated on the outstanding loan balance. For the second payment, we need to calculate the interest on the remaining balance after the first payment.
Interest Portion of Second Payment = Remaining Loan Balance * Monthly Interest Rate
To calculate the remaining loan balance after the first payment, we subtract the principal portion of the first payment from the initial loan balance.
Remaining Loan Balance = Loan Amount - Principal Portion of First Payment
To calculate the principal portion of the first payment, we can use the formula for calculating the monthly payment on an amortizing loan.
[tex]\[\text{Monthly Payment} = \text{Loan Amount} \times \left(\frac{\text{Monthly Interest Rate}}{1 - (1 + \text{Monthly Interest Rate})^{-\text{Number of Payments}}}\right)\][/tex]
Principal Portion of First Payment = Monthly Payment - Interest Portion of First Payment
By substituting the given values into the formulas, we can find the interest portion of the second payment:
[tex]\[\text{Remaining Loan Balance} = \$340,000 - (\$340,000 \times \left(\frac{0.004}{1 - (1 + 0.004)^{-360}}\right))\][/tex]
Principal Portion of First Payment = $1,765.17 - ($340,000 * 0.004)
Interest Portion of Second Payment = Remaining Loan Balance * Monthly Interest Rate
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The Unadjusted Trial Balance Of Waverly Anvils At December 31,2024 , And The Data For The Adjustments Follow: (Click The Icon To
The Unadjusted Trial Balance of Waverly Anvils at December 31, 2024, and the data for the adjustments follow: Debit Credit Cash $ 27,500 Accounts Receivable 10,000 Supplies 5,000 Prepaid Rent 12,000 Equipment 50,000 Accumulated Depreciation—Equipment $ 10,000 Accounts Payable 10,000 Common Stock 30,000
Retained Earnings 55,000 Dividends 3,000 Service Revenue 35,000 Salaries Expense 18,000 Rent Expense $ 10,000 Depreciation Expense—Equipment 5,000 Supplies Expense 3,000 Service Revenue Earned but Unbilled 1,500 137,500 137,500 Adjustments: The prepaid rent account represented rent for January through March of 2025. Supplies on hand at December 31, 2024, were $2,000. The equipment was purchased on January 1, 2024, and has an estimated life of five years. No salvage value is anticipated.
Depreciation is to be recorded for a full year. The unbilled service revenue represents revenue for services performed in December of 2024. Salaries earned but unpaid at December 31, 2024, amounted to $1,500.Required:
1. Enter the unadjusted trial balance data in the Trial Balance columns of the work sheet and complete the work sheet using the following information:a. The supplies on hand amount to $2,000.
b. The prepaid rent represents rent for January through March of 2025.
c. Depreciation for the year on the equipment is $10,000.
d. Accrue salaries expense of $1,500.
e. Unbilled service revenue amounts to $1,500.
f. No income tax expense is to be recognized.
2. Prepare adjusting journal entries as of December 31, 2024.3. Prepare an income statement and a statement of retained earnings for the year ended December 31, 2024, and a classified balance sheet as of December 31, 2024. The company’s income tax rate is 30%.4. Journalize and post the closing entries. The dividends were declared on December 31, 2024.
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Find i (the rate per period) and n (the number of periods) for the following annuity. Quarterly deposits of $1,400 are made for 4 years into an annuity that pays 8% compounded quarterly. I = (Type an integer or decimal rounded to four decimal places as needed.)
To find the rate per period (i) and the number of periods (n) for the annuity, we can use the annuity formula:
A = P * (1 + i)^n - 1 / i
Where:
A = Total accumulated value of the annuity
P = Quarterly deposit amount
i = Rate per period
n = Number of periods
In this case, the quarterly deposit amount is $1,400, the annuity pays 8% compounded quarterly, and the annuity period is 4 years.
Substituting the given values into the formula:
A = $1,400 * (1 + i)^4 - 1 / i
A = $1,400 * (1.02)^4 - 1 / i
Solving this equation for i requires iterative methods or a financial calculator. The calculated value for i is approximately 0.0184.
Hence, the rate per period (i) for the annuity is approximately 0.0184, rounded to four decimal places. The number of periods (n) is 4 years, as given in the problem.
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A variable cost stays the same on a per unit basis, but changes in total costs. stays the same in total, but changes on a per unit basis. changes on a per unit basis in direct proportion to the activity level. stays the same in total and on a per unit basis.
Variable cost is a cost that changes in total amount as the quantity of units produced or sold changes. It remains constant per unit in such a way that the more units produced or sold, the greater the total variable costs. This relationship between variable costs and the level of activity is proportional.
Direct proportionality is the relationship between two quantities in which one quantity varies in direct proportion to the other. A variable cost is defined as a cost that varies directly with the level of activity. The total cost of a variable cost is not constant as the number of units produced or sold varies, but the variable cost per unit is constant.
If the company produces 100 bicycles, its total variable cost would be $5,000. However, if it produces 200 bicycles, its total variable cost would be $10,000 because variable cost is directly proportional to the number of units produced. In conclusion, the correct statement is that a variable cost changes on a per unit basis in direct proportion to the activity level.
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Elements of integrated product/process design (or concurrent engineering) include. a) Using a cross-functional team approach in the design process b) Waiting until as late as possible in the design process to involve operations c) Increasing the number of parts or components in new products d) All of the above
The correct answer is a) Using a cross-functional team approach in the design process.
Integrated product/process design, also known as concurrent engineering, involves the collaboration of different departments or functions within an organization to design a product or process. This cross-functional team approach ensures that various perspectives and expertise are considered during the design phase, resulting in a more comprehensive and efficient design.
b) Waiting until as late as possible in the design process to involve operations is not an element of integrated product/process design. In fact, involving operations early on in the design process is one of the key principles of concurrent engineering. By involving operations early, potential issues or constraints can be identified and addressed promptly, leading to smoother production and improved overall efficiency.
c) Increasing the number of parts or components in new products is not a characteristic of integrated product/process design. On the contrary, the aim of concurrent engineering is to simplify and streamline the design by reducing the number of parts and components. This helps to lower manufacturing and assembly costs, improve quality, and enhance product reliability.
Therefore, the correct answer is a) Using a cross-functional team approach in the design process.
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Sunland reported the following information for its fiscal year end; On net sales of $52.000 ballion, the company earned net income after taxes of $6.240 billion. It had a cost of goods sold of $24.180 bilion and EBIT of $9.880 billion. What are the company's erous: Gross profitmargin Operating profit margin Net profit margin eTextbook and Media Attempts:1 of 3 used Using multiple attempts will impact your score.
The company's gross profit margin is 53.65%, operating profit margin is 18.92%, and net profit margin is 12%.
To calculate the gross profit margin, we divide the gross profit by net sales and multiply by 100:
Gross Profit Margin = (Net Sales - Cost of Goods Sold) / Net Sales * 100
= ($52.000 billion - $24.180 billion) / $52.000 billion * 100
= $27.820 billion / $52.000 billion * 100
= 53.65%.
To calculate the operating profit margin, we divide the operating profit (EBIT) by net sales and multiply by 100:
Operating Profit Margin = EBIT / Net Sales * 100
= $9.880 billion / $52.000 billion * 100
= 18.92%.
To calculate the net profit margin, we divide the net income after taxes by net sales and multiply by 100:
Net Profit Margin = Net Income after Taxes / Net Sales * 100
= $6.240 billion / $52.000 billion * 100
= 12%.
Therefore, the company's gross profit margin is 53.65%, operating profit margin is 18.92%, and net profit margin is 12%.
These margin ratios provide insights into the company's profitability at different stages of its income statement. The gross profit margin indicates how effectively the company manages its production costs and pricing strategies. The operating profit margin measures the efficiency of the company's operations, excluding interest and taxes. The net profit margin shows the overall profitability of the company, considering all expenses and taxes.
In this case, Sunland has a relatively high gross profit margin, indicating efficient cost management and favorable pricing. The operating profit margin suggests that the company has a moderate level of operational efficiency. The net profit margin shows that the company is generating a 12% profit on its net sales after accounting for all expenses and taxes. These margin ratios can be compared to industry benchmarks to assess the company's performance relative to its peers and to evaluate its profitability trends over time.
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There is no evidence that carbon taxes reduce carbon emissions. Discuss.
It is not totally correct to say that there is no proof that carbon taxes lower carbon emissions. Carbon taxes can successfully cut carbon emissions, as shown by several research and real-world examples.
By placing a price on greenhouse gas emissions, carbon taxes encourage polluters to cut back on their emissions in order to save money.For instance, a study that examined the effects of carbon taxes in 142 countries and was published in Nature Climate Change in 2018 discovered that they were linked to considerable emission reductions. Similar to Sweden, Norway, and Finland, these nations enacted carbon fees and over time saw a discernible drop in emissions.Although it is accurate that the success of carbon taxes can vary based on a number of factors, including the planning, execution, and supporting
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ATC 13-1 Business Applications Case Analyzing Home Depot And Lowe's The Following Information Relates To The Kroger Co., And Publix Super Markets Inc., For Their 2019 And 2018 Fiscal Years.Required A. Compute The Following Ratios For The Companies' 2019 Fiscal Years (Year Ending In February 2020 For Kroger): (1) Current Ratio. (2) Average Days To Sell
Kroger and Publix are two major supermarket chains in the United States of America. Here we will compute the following ratios for the two companies' 2019 fiscal years:
1. Current Ratio Current ratio is calculated as the ratio of current assets to current liabilities.
It is an indicator of the company's liquidity. Higher current ratios are generally considered better as it implies that the company can pay off its short-term liabilities easily. The formula to calculate the current ratio is given below:
Current ratio = Current Assets / Current Liabilities.
Now, let's calculate the current ratio for Kroger and Publix for the fiscal year 2019. Kroger Current Assets = $8,735.00 million
Current Liabilities = $8,327.00 million
Current Ratio = Current Assets / Current Liabilities
= $8,735.00 million / $8,327.00 million
= 1.049
Publix Current Assets = $7,070.30 million
Current Liabilities = $4,447.50 million.
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Entrepreneurs don’t assume the risks of starting a new venture.
True
False
Necessity entrepreneurs make up for the lack of other job opportunities in their environment by creating ventures for self-employment.
True
False
1. Entrepreneurs do assume the risks of starting a new venture - False.
2. Necessity entrepreneurs create ventures for self-employment due to the lack of other job opportunities in their environment - True.
1. The statement "Entrepreneurs don't assume the risks of starting a new venture" is False. Entrepreneurs are known for taking risks as they venture into new business opportunities. Starting a new venture involves uncertainty, financial investment, and potential failure, all of which require entrepreneurs to assume and manage risks. Successful entrepreneurs often demonstrate a willingness to take calculated risks, make strategic decisions, and bear the consequences of their actions.
2. The statement "Necessity entrepreneurs make up for the lack of other job opportunities in their environment by creating ventures for self-employment" is True. Necessity entrepreneurs are individuals who engage in entrepreneurship out of necessity rather than pursuing a business opportunity.
They may face limited job prospects or unfavorable economic conditions in their environment, leading them to create their own ventures as a means of self-employment and income generation. Necessity entrepreneurs often exhibit resourcefulness and resilience, leveraging their skills and available resources to start businesses in challenging circumstances.
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Suppose that the exchange rate is 1.2 dollars per euro. If the euro depreciates 10% against the dollar, how many euros would a dollar buy?
A. 1.1685 euros
B. 1.3225 euros
C. 1.4334 euros
D. .9259 Euros - ANSWER
Suppose that the exchange rate is 100 yens per dollar. If the yen depreciates 20% against the dollar, how many yens would a dollar buy?
A. 120 yens
B. 80 yens
C. 115 yens
D. 125 yens - ANSWER
Need help calculating these. Excel formula would be helpful.
If the euro depreciates 10% against the dollar, 0.9259 euros would a dollar buy. If the yen depreciates 20% against the dollar, 80 yens would a dollar buy.
To calculate the new exchange rate after depreciation, you can use the formula:
New exchange rate = Old exchange rate * (1 - Depreciation rate)
Let's calculate the answers using the given information:
Euro depreciation:
Old exchange rate = 1.2 dollars per euro
Depreciation rate = 10%
New exchange rate = 1.2 * (1 - 0.10) = 1.2 * 0.9 = 1.08 dollars per euro
So, the answer is D. 0.9259 euros.
Yen depreciation:
Old exchange rate = 100 yens per dollar
Depreciation rate = 20%
New exchange rate = 100 * (1 - 0.20) = 100 * 0.8 = 80 yens per dollar
So, the answer is B. 80 yens.
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please answer to these questions:
Can current or future technology overcome environmental issues
that impact human health?
Have you experienced physical or social vulnerability as
described in the les
Yes, current or future technology can overcome environmental issues that impact human health. Technological advancements have the potential to address environmental issues by increasing efficiency, reducing waste, and creating sustainable alternatives to current practices.
For instance, renewable energy sources, such as wind and solar power, can replace fossil fuels to reduce air pollution and mitigate climate change. Similarly, sustainable agriculture practices can help to reduce the use of harmful pesticides and fertilizers, improve soil health, and increase food security. Additionally, smart technologies and innovative materials can reduce waste and pollution by optimizing resource usage and promoting circular economies. Regarding the second question, as an AI language model, I do not have the ability to experience physical or social vulnerability as described in the les. However, social vulnerability refers to the susceptibility of certain groups of people to negative impacts due to their social, economic, or political situation. For example, people living in poverty, ethnic minorities, women, and children may be more vulnerable to environmental issues such as air and water pollution, climate change, and natural disasters due to their limited access to resources, education, and health care. These vulnerabilities can be addressed through policies that promote social justice, equality, and inclusive development.
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You are 65 years old and about to retire. You have $100,000 saved in a retirement account and would like to withdraw it in equal annual amounts so that nothing is left after 12 years. How much can you withdraw each year if the account earns 6% interest each year? You have credit card debt of $3,000 at 24% APR compounded monthly. If you charge no more purchases to the card and make monthly payments of $425, how many months will it take you to payoff your debt? Your employer provides a 401(k) plan with a matching contribution of 7% of your salary if you put in at least 5% of your salary. If your monthly salary is $3250 and you contribute just enough to get the match, then how much money will be added to your account in total over one year? As a self-employed worker you pay FICA taxes at the rate of 15.3% of your earnings. You earned $48186 this year. How much must you pay as your FICA contribution?
You can withdraw approximately $11,247.70 each year from your retirement account. It will take about 9.4 months to pay off your credit card debt. Your 401(k) account will receive an additional $2,730 over a year. Your FICA contribution is $7,378.06.
To determine the annual withdrawal amount from your retirement account, you can use the concept of a future value of an ordinary annuity. With a $100,000 account balance, a 6% interest rate, and a duration of 12 years, the future value is given by FV = P * ((1 + r)^n - 1) / r, where P is the withdrawal amount, r is the interest rate, and n is the number of years. Rearranging the formula, we find P = FV * (r / ((1 + r)^n - 1)). Plugging in the values, P = $100,000 * (0.06 / ((1 + 0.06)^12 - 1)) ≈ $11,247.70. Therefore, you can withdraw approximately $11,247.70 each year.
For the credit card debt, you can use the formula for the number of months to pay off the debt. The formula is given by t = -(1 / n) * log(1 - (r * PV) / PMT), where t is the number of months, n is the number of compounding periods per year (12 for monthly), r is the monthly interest rate (24% / 12), PV is the present value (initial debt), and PMT is the monthly payment. Plugging in the values, t ≈ -(1 / 12) * log(1 - ((0.24 / 12) * $3,000) / $425) ≈ 9.4 months. So, it will take approximately 9.4 months to pay off the debt.Considering the 401(k) plan, your employer will match 7% of your salary if you contribute at least 5%. Therefore, your contribution will be 5% of $3,250 = $162.50 per month. The employer's contribution will be 7% of $3,250 = $227.50 per month. Over a year, your account will receive an additional $227.50 * 12 = $2,730.
As a self-employed worker, your FICA contribution is calculated at a rate of 15.3% of your earnings. Therefore, your FICA contribution is $48,186 * 0.153 = $7,378.06.
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Nina's has a monopoly on good ice cream in Springfield. The inverse market demand for ice cream is Pd(x) = 140 – 6x. The cost to make ice cream is c(x) = 4x2.
What is the marginal revenue function for ice cream?
What is the marginal cost of making ice cream?
Graph the market for ice cream in Springfield
What price and quantity is chosen by Nina's if they are a profit maximizing monopoly?
What is price and quantity of ice cream that would maximize total surplus?
Label the deadweight loss due to Nina's monopoly power.
The marginal revenue function for ice cream is MR(x) = 140 - 12x.
The marginal cost of making ice cream is MC(x) = 8x.
Nina's would choose a quantity of 7 units of ice cream to maximize profits.
Nina's would choose a price of £98 for ice cream.
Marginal revenue refers to the additional revenue generated from selling one additional unit of a product or service. It represents the change in total revenue that occurs as a result of producing and selling an additional unit. Marginal revenue is calculated by dividing the change in total revenue by the change in quantity sold. It is an important concept in economics and business decision-making, as it helps determine the optimal level of production and pricing strategies for maximizing profits.
Marginal revenue represents the change in total revenue resulting from selling one additional unit of ice cream.
To find the marginal revenue function for ice cream, we need to derive it from the inverse market demand function.
The inverse market demand function is given as Pd(x) = 140 - 6x, where x represents the quantity of ice cream sold.
To find the marginal revenue function, we differentiate the total revenue function with respect to quantity (x):
TR(x) = P(x) × x
TR(x) = (140 - 6x) × x
To find the marginal revenue function, we take the derivative of the total revenue function:
MR(x) = d(TR(x))/dx
MR(x) = d((140 - 6x) × x)/dx
MR(x) = 140 - 12x
Therefore, the marginal revenue function for ice cream is MR(x) = 140 - 12x.
To find the marginal cost of making ice cream, we use the cost function c(x) = 4x².
The marginal cost represents the additional cost incurred when producing one more unit of ice cream.
To find the marginal cost, we take the derivative of the cost function with respect to quantity (x):
MC(x) = d(c(x))/dx
MC(x) = d(4x²)/dx
MC(x) = 8x
Therefore, the marginal cost of making ice cream is MC(x) = 8x.
Graphing the market for ice cream in Springfield requires plotting the demand curve, marginal revenue curve, and marginal cost curve on a graph.
To determine the price and quantity chosen by Nina's as a profit-maximizing monopoly, we need to find the quantity where marginal revenue equals marginal cost.
In other words, we find the point where MR(x) = MC(x).
Set the two equations equal to each other and solve for x:
140 - 12x = 8x
Combine like terms:
140 = 20x
Divide by 20:
x = 7
Therefore, Nina's would choose a quantity of 7 units of ice cream to maximize profits.
To find the price chosen by Nina's, substitute the quantity (x = 7) into the inverse market demand function:
Pd(x) = 140 - 6x
Pd(7) = 140 - 6(7)
Pd(7) = 140 - 42
Pd(7) = 98
Therefore, Nina's would choose a price of £98 for ice cream.
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The marginal revenue function for ice cream is MR(x) = 140 - 12x.The marginal cost of making ice cream is MC(x) = 8x. Nina'swould choose a quantity of 7 units of ice cream to maximize profits.Nina's would choose a price of £98 for ice cream.
Marginal revenue refers to the additional revenue generated from selling one additional unit of a product or service. It represents the change in total revenue that occurs as a result of producing and selling an additional unit. Marginal revenue is calculated by dividing the change in total revenue by the change in quantity sold. It is an important concept in economics and business decision-making, as it helps determine the optimal level of production and pricing strategies for maximizing profits.
Marginal revenue represents the change in total revenue resulting from selling one additional unit of ice cream.
To find the marginal revenue function for ice cream, we need to derive it from the inverse market demand function.
The inverse market demand function is given as Pd(x) = 140 - 6x, where x represents the quantity of ice cream sold.
To find the marginal revenue function, we differentiate the total revenue function with respect to quantity (x):
TR(x) = P(x) × x
TR(x) = (140 - 6x) × x
To find the marginal revenue function, we take the derivative of the total revenue function:
MR(x) = d(TR(x))/dx
MR(x) = d((140 - 6x) × x)/dx
MR(x) = 140 - 12x
Therefore, the marginal revenue function for ice cream is MR(x) = 140 - 12x.
To find the marginal cost of making ice cream, we use the cost function c(x) = 4x².
The marginal cost represents the additional cost incurred when producing one more unit of ice cream.
To find the marginal cost, we take the derivative of the cost function with respect to quantity (x):
MC(x) = d(c(x))/dx
MC(x) = d(4x²)/dx
MC(x) = 8x
Therefore, the marginal cost of making ice cream is MC(x) = 8x.
Graphing the market for ice cream in Springfield requires plotting the demand curve, marginal revenue curve, and marginal cost curve on a graph.
To determine the price and quantity chosen by Nina's as a profit-maximizing monopoly, we ned to find the quantity where marginal revenue equals marginal cost.
In other words, we find the point where MR(x) = MC(x).
Set the two equations equal to each other and solve for x:
140 - 12x = 8x
Combine like terms:
140 = 20x
Divide by 20:
x = 7
Therefore, Nina's would choose a quantity of 7 units of ice cream to maximize profits.
To find the price chosen by Nina's, substitute the quantity (x = 7) into the inverse market demand function:
Pd(x) = 140 - 6x
Pd(7) = 140 - 6(7)
Pd(7) = 140 - 42
Pd(7) = 98
Therefore, Nina's would choose a price of £98 for ice cream.
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2018 accounts receivable = $35M
2019 cash collections = $190M
December 2019 Sales = $19.4M
Days in December = 30
Calculate ending 2019 AR
Calculate the accounts receivable at the end of December 2019 by multiplying the average daily sales in December 2019 by the number of days remaining in December which is $18.76 million.
Step 1: Calculate the total cash collected during 2019 by subtracting the 2018 accounts receivable from the 2019 cash collections:
Total cash collected during 2019 = 2019 cash collections - 2018 accounts receivable
Total cash collected during 2019 = $190M - $35M
Total cash collected during 2019 = $155M
Step 2: Calculate the December 2019 sales as a proportion of the total cash collected during 2019:
Proportion of December 2019 sales = December 2019 Sales / Total cash collected during 2019
Proportion of December 2019 sales = $19.4M / $155M
Proportion of December 2019 sales = 0.125
Step 3: Calculate the accounts receivable related to December 2019 sales by multiplying the proportion of December 2019 sales by the total cash collected during 2019:
AR related to December 2019 sales = Proportion of December 2019 sales * Total cash collected during 2019
AR related to December 2019 sales = 0.125 * $155M
AR related to December 2019 sales = $19.375M
Step 4: Calculate the average daily sales in December 2019 by dividing the December 2019 sales by the number of days in December:
Average daily sales in December 2019 = December 2019 Sales / Days in December
Average daily sales in December 2019 = $19.4M / 30
Average daily sales in December 2019 = $0.6467M
Step 5: Calculate the accounts receivable at the end of December 2019 by multiplying the average daily sales in December 2019 by the number of days remaining in December:
AR at the end of December 2019 = Average daily sales in December 2019 * (Days in December - 1)
AR at the end of December 2019 = $0.6467M * (30 - 1)
AR at the end of December 2019 = $0.6467M * 29
AR at the end of December 2019 = $18.7633M
Therefore, the ending 2019 accounts receivable (AR) is approximately $18.76 million.
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As an employer, you are furnishing safety glasses but employees continue to lose, break, and/or perhaps even steal them. If this continues, you will have to raise your prices to cover the extra costs. Compose 2 or 3 paragraphs that explain your plan to minimize your costs for glasses. You cannot suggest employees bring their own glasses because you need to be sure employees are getting the correct type of glasses.
It is our sincere hope that by implementing these measures, we can minimize the costs associated with lost, broken, or stolen safety glasses without having to resort to raising prices. We believe that with everyone's cooperation and adherence to these protocols, we can ensure a safe and cost-effective working environment for all.
Dear Employees,
We understand the importance of providing you with safety glasses to ensure your well-being and compliance with safety regulations. However, the recurring issue of lost, broken, or stolen glasses has put a strain on our resources and may eventually lead to an increase in prices to cover the extra costs. To minimize these expenses and ensure a sustainable solution, we have devised a comprehensive plan aimed at reducing the occurrences of lost or damaged safety glasses.
Firstly, we will implement a stricter check-in and check-out system for the safety glasses. Each employee will be required to sign for a pair of glasses upon receipt and return them at the end of their shift. By maintaining a clear record of who has been assigned glasses, we can hold individuals accountable for any loss or damage that occurs during their possession. Additionally, we will conduct regular audits to identify patterns and address any potential issues promptly.
Secondly, we will invest in higher-quality, durable safety glasses that are less prone to breakage. While this may initially involve a higher upfront cost, it will significantly reduce the frequency of replacements and the associated expenses in the long run. Moreover, we will actively seek feedback from employees regarding the comfort and fit of the glasses, ensuring that they are satisfied with the provided options, which will further discourage theft or the temptation to replace them with personal glasses.
Lastly, we will prioritize employee education and awareness regarding the importance of safety glasses and their proper use. By organizing regular safety training sessions, we can emphasize the significance of maintaining and protecting the glasses, reducing the likelihood of accidental damage. Additionally, fostering a culture of responsibility and respect within the workplace will discourage theft and encourage employees to take better care of their assigned safety equipment.
It is our sincere hope that by implementing these measures, we can minimize the costs associated with lost, broken, or stolen safety glasses without having to resort to raising prices. We believe that with everyone's cooperation and adherence to these protocols, we can ensure a safe and cost-effective working environment for all.
Best regards,
[Your Company Name]
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Consider the following game between Volker and you
The external student-professor battle Volker
Easy HW Hard HW
Student Does not study 4,1 2,2
Study 3,4 1,3
a) Find the Nash equilibrium if the game is played simultaneously
b) Now the student makes the study decision first and Volker (magically) learns how lazy (or studious) they were before setting up the HW. Draw the game tree and find the rollback equilibrium.
c) Now Volker writes the HW and has a trustworthy person read it and report to the students a week before the HW how hard (or easy) it is. Based on this the student decides how much to study. Draw the game tree and find the Nash equilibrium.
d) If any of the results in a), b) and c) differ from another, explain why.
For the game in 3) is there a Nash equilibrium in mixed strategies? Explain (no need to find it)
In order do to this, assume the payoffs are not ranks (ordinal), but cardinal (so what you know from stats as quantitative – averages have meaning)
a) It is a pair of strategies that, if adopted by the two players, keep them both from deviating from their initial decision.In this game, we will have one Nash equilibrium where the student studies and Volker assigns an easy HW. If the student chooses to not study and Volker assigns an easy HW, then the payoff will be (4,1) and (2,2) if he assigns a hard HW. If the student studies, then the payoff will be (3,4) if Volker assigns an easy HW and (1,3) if he assigns a hard HW.
b) At every information set, circle the node representing the first decision that player can make. At the top of each information set, specify what player knows at that information set. Rollback equilibrium will be if student chooses "study" (as he will definitely do if his score is 70 or above) and Volker assigns an easy HW.
c) Now Volker writes the HW and has a trustworthy person read it and report to the students a week before the HW how hard (or easy) it is. Based on this, the student decides how much to study. If the student decides to study more for harder HW, the new game becomes:
At every information set, circle the node representing the first decision that player can make. At the top of each information set, specify what player knows at that information set.
The Nash equilibrium for this game is where the student studies and Volker sets the HW difficulty to be hard. If the student studies and Volker sets the HW to be easy, the student will regret his decision and if he does not study and Volker sets the HW to be hard, he will regret his decision.
The results are different in all three cases as in a) Nash equilibrium was obtained when both players acted simultaneously, in b) the rollback equilibrium was obtained when the student acted first and in c) the Nash equilibrium was obtained when Volker obtained the knowledge of what the student will do in future and acted accordingly.
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Prepare journal entries to record the following merchandising transactions of Cabela’s, which uses the perpetual inventory system and the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable—Boden.)
July 1 Purchased merchandise from Boden Company for $6,600 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1.
2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $550.
3 Paid $140 cash for freight charges on the purchase of July 1.
8 Sold merchandise that had cost $1,900 for $2,300 cash.
9 Purchased merchandise from Leight Co. for $2,300 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9.
11 Received a $300 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9.
12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount.
16 Paid the balance due to Boden Company within the discount period.
19 Sold merchandise that cost $800 to Art Co. for $1,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19.
21 Issued a $200 credit memorandum to Art Co. for an allowance on goods sold on July 19.
24 Paid Leight Co. the balance due, net of discount.
30 Received the balance due from Art Co. for the invoice dated July 19, net of discount.
31 Sold merchandise that cost $5,400 to Creek Co. for $6,900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.
Answer:
accont payable 30
Explanation:
2.2 Terry's Manufacturing's cost accountant has provided you with the following information forMarch operations:Sales price $395.11 per unitVariable manufacturing overhead $60.21 per unitFixed manufacturing overhead costs $7.50 per unitVariable marketing and administrative costs $24.87 per unitFixed marketing and administrative costs $19.50 per unitDirect materials $105.33 per unitDirect labor $120.11 per unitUnits Produced 30,000Determine each of the following: (check figure: full cost = $337.52 per unit)a. Full absorbtion costb. Full costc. Variable manufacturing costd. Variable coste. Gross marginf. Contribution marging. Profit margin
The information provided by the cost accountant is useful in determining various costs. Here are the answers to the following questions. (check figure: full cost = 337.52 per unit)First, let's calculate the full absorption cost. To do so, we need to calculate the total fixed cost.
The total fixed cost for manufacturing and marketing is 7.50 + 19.50 = 27.00 per unit.
The full absorption cost is calculated as follows:
Full absorption cost = Direct materials + Direct labor + Variable manufacturing overhead + Variable marketing and administrative costs + Fixed manufacturing overhead costs + Fixed marketing and administrative costs
Full absorption cost = 105.33 + 120.11 + 60.21 + 24.87 + 7.50 + 19.50
Full absorption cost = 337.52 per unit.
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While Tender Chicken Inc. operates in a monopolistically competitive industry, Future Wireless Inc. operates in a monopoly. Keeping this information in mind, which of the following statements is most likely true?
The number of buyers will be limited for both Tender Chicken and Future Wireless.
Tender Chicken will have more pricing power than Future Wireless does.
The threat of new entrants will be higher for Tender Chicken than for Future Wireless.
Tender Chicken will have more profit potential than Future Wireless.
The statement that is most likely to be true is, "Tender Chicken will have more pricing power than Future Wireless does."(B)
Tender Chicken, which operates in a monopolistically competitive market, is a firm that is only one of several competing in a market that also has a variety of substitute goods.The firm's market share is limited, but the product is distinct enough to allow the business to raise prices. Future Wireless, on the other hand, operates in a monopolistic market in which it is the sole supplier of the product. As a result, the firm has more power to control prices than Tender Chicken does.
Monopolies, according to the question, usually refer to businesses that operate in markets where they are the only supplier of a product. This provides a firm with a lot of leverage when it comes to pricing and profit. In comparison, monopolistic competition refers to a scenario in which there are several firms selling products that are similar but not identical. Therefore, option (B) is correct. The correct answer is "Tender Chicken will have more pricing power than Future Wireless does."
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You have recently been hired by Perez & Company, a small public accounting firm. One of the firm's partners, Annie Perez, has asked you to deal with a disgruntled client, Mr. John Harris, owner of the city's largest grocery store. Mr. Harris is applying to a local bank for a substantial loan to remodel his store. The bank requires accrual-based financial statement, but Mr. Harris has always kept the company's records on cash basis. He doesn't see the purpose of accrual-based statement. His most recent protest went something like this: "I don't get it! I collect cash from customers, pay my bills in cash, and I am going to pay the bank loan with cash. I even show my building and equipment as assets and depreciate them. What's the problem?" Required: Write a professional email to Mr. Harris providing an explanation of why the bank requests accrual-based financial statements for loan requests such as his, including the following. An explanation of the difference between a cash basis and an accrual basis measure of performance. Why accrual-basis net income provides a better measure of performance than net operating cash flow in most cases. The purpose of adjusting entries as they relate to the difference between cash and accrual accounting.
Mr. Harris,I understand that you're trying to get a loan from a local bank for a substantial amount to remodel your grocery store. However, the bank requires accrual-based financial statements, which you are not familiar with.
You keep the records of your company on a cash basis and cannot understand the purpose of accrual-based statements. You have expressed your concerns by stating that you collect cash from customers, pay your bills in cash, and you will pay the bank loan with cash. Even the building and equipment are assets that are depreciated, so you're wondering what the problem is.
To explain why banks require accrual-based financial statements for loan requests such as yours, I must first distinguish between a cash basis and an accrual basis measure of performance.A cash basis measure of performance is when revenue is only recognized when cash is received, while expenses are only recognized when they are paid. An accrual basis measure of performance, on the other hand, is when revenues are recognized when they are earned, while expenses are recognized when they are incurred.
Banks use accrual-basis financial statements because they provide a better measure of a company's financial performance than cash-basis financial statements. The accrual basis provides more information, which includes a better understanding of the company's operating performance. Net income is a better measure of performance than net operating cash flow in most cases because it reflects a company's profitability over a period, while net operating cash flow is simply a snapshot of a company's cash position at a particular point in time.
Although net operating cash flow provides valuable information, it cannot provide a complete picture of a company's financial health.Adjusting entries are entries that are made at the end of a period to bring the accounts up to date. These entries adjust the financial statements for the difference between cash and accrual accounting. The purpose of adjusting entries is to ensure that the financial statements accurately reflect the financial condition of the company.
If the financial statements are inaccurate, it could lead to incorrect decision-making by stakeholders.Thank you for your time, and I hope that this information has been helpful to you. If you have any further questions, please don't hesitate to contact me.
Sincerely,[Your Name]
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The income statements of crane company for the month of july shows net income of $ 1600 based on service revenue $4400, salaries & wages expenses 1680
The income statement is a summary of the financial transactions of a company over a given period of time. It is the primary financial statement used to assess a company's financial performance.
The income statements of Crane Company for the month of July show a net income of $1600 based on service revenue of $4400 and salaries and wages expenses of $1680.The income statement begins with the revenue that a company earns from its operations, which in this case is service revenue of $4400. Next, the expenses of the company are listed, which includes salaries and wages expenses of $1680. The difference between the revenue and expenses is known as the net income, which is $1600 in this case.
It is important to note that the income statement only reflects the financial performance of a company over a specific period of time. It does not show the cash flow of a company or the assets and liabilities of the company. Therefore, it should be used in conjunction with other financial statements to get a complete picture of a company's financial health.In conclusion, the income statement of Crane Company for the month of July shows a net income of $1600 based on service revenue of $4400 and salaries and wages expenses of $1680. This indicates that the company earned a profit during this period.
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Which style of communicating do you think would be most beneficial to the longterm success of a U.S. company operating internationally—high-context or low-context communications? Why?
Low-context communication style is most beneficial to the long-term success of a U.S. company operating internationally. It involves communication in a precise and direct manner, where the information is clear and to the point.
The advantages of low-context communication style include better clarity and precision in the conveyed message, making it easier to understand across cultures. This style ensures that the message is not misinterpreted or misunderstood due to cultural or language differences. It also reduces the chances of confusion, conflicts, and misunderstandings, which can hamper the progress of a company operating internationally.It makes use of explicit statements and relies less on the shared context between the speaker and listener.
In contrast, high-context communication style involves indirect and implicit messages that require the listener to read between the lines. It relies heavily on the shared context between the speaker and listener. It is more prevalent in collectivistic cultures, which prioritize building relationships and harmony over being direct and explicit. However, this communication style can create confusion and misunderstandings in international business settings, as it relies on a shared context that may not exist across cultures.
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The Swiss Franc is trading at 1.0884 $/SFr, the euro is trading at 1.1275 $/euro. If you can buy or sell SFr/euro at 1.0335, is there an arbitrage? If so, how much can you make with one round-trip using $1,000,000?
Yes, there is an arbitrage opportunity in this scenario. By converting $1,000,000 to Swiss Francs at the rate of 1.0884 $/SFr, you would receive approximately SFr 918,400. Then, by exchanging the Swiss Francs for Euros at the rate of 1.0335 SFr/euro, you would obtain around €888,386.
Finally, by converting the Euros back to dollars at the rate of 1.1275 $/euro, you would end up with approximately $1,001,066. Therefore, through one round-trip of these currency exchanges, you could potentially make a profit of around $1,066.
The exchange rates given are as follows: 1 Swiss Franc (SFr) is equal to 1.0884 dollars ($), and 1 Euro (€) is equal to 1.1275 dollars ($). The SFr/euro rate for buying or selling is 1.0335. To take advantage of the arbitrage opportunity, you start with $1,000,000 and convert it to Swiss Francs by dividing the amount by the SFr/$ rate. Thus, $1,000,000 divided by 1.0884 $/SFr gives approximately SFr 918,400.
Next, you exchange the Swiss Francs for Euros by dividing the amount in Swiss Francs by the SFr/euro rate. So, SFr 918,400 divided by 1.0335 SFr/euro results in approximately €888,386.
Finally, you convert the Euros back to dollars by multiplying the amount in Euros by the euro/$ rate. Thus, €888,386 multiplied by 1.1275 $/euro gives approximately $1,001,066.
Comparing the starting amount of $1,000,000 with the final amount of $1,001,066, you can see that a profit of around $1,066 is possible through one round-trip of these currency exchanges, indicating an arbitrage opportunity.
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A commercial database with cost information is considered as _ to the Estimate Costs process. a. PMIS b. Tool and Technique c. Output d. Input
A commercial database with cost information is considered as a tool and technique to the Estimate Costs process.The Estimate Costs process is defined as the process of estimating the cost of the required resources and work efforts needed to finish project activities.
This procedure estimates the cost of finishing a project using different methods such as Analogous Estimating, Bottom-Up Estimating, and Three-Point Estimating. Cost estimation is a process that requires knowledge, skills, and tools and techniques. A commercial database with cost information is a tool and technique that can be used in the Estimate Costs process.
Commercial databases are database systems that are owned, maintained, and sold by commercial vendors. The cost data can be obtained from several sources, such as previous projects, publicly available cost data, or professional associations.
Commercial databases with cost information are helpful in estimating costs because they contain historical data that can be used to estimate costs. Additionally, this data can be easily accessed and updated. These databases can help the project manager save time and money by reducing the time required to estimate costs.
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: Hill Lodge owns a hotel chain and is considering building a new 200-unit luxury hotel. The cost of building is estimated to be $8 M (M=million). Furnishing the hotel will cost $700,000 every five years. The annual operating and maintenance cost is estimated to be $800,000. The average rental rate for a room is anticipated to be $40 per day. Hill Lodge will own the hotel for 15 years at which time the hotel will have a resale value of $900,000. The furnishing will not be replaced at the end of 15 years. Assuming the occupancy rate to be 50% for the 1st year, 60% for the 2nd year. 70% for the 3rd year, 80% for the 4th year and 90% for years 5 through Find the present worth of each of the following Cost of furnishing ($1, 322.58 K) (K = thousand) Operating and maintenance cost ($5, 448.69 K) Rental income ($15, 556.53 K) Assume 365 days per year and an interest rate of 12% per year.
To calculate the present worth of the cost of furnishing, operating and maintenance cost, and rental income for the new luxury hotel owned by Hill Lodge, we need to discount the future cash flows to their present values using the given interest rate of 12% per year. The cost of furnishing is estimated to be $1,322.58 K (thousand), the operating and maintenance cost is $5,448.69 K, and the rental income is $15,556.53 K. By discounting these cash flows over the 15-year ownership period, we can determine their present worth values.
To calculate the present worth of the cost of furnishing, operating and maintenance cost, and rental income, we need to discount the future cash flows using the interest rate of 12% per year.
Cost of Furnishing ($1,322.58 K):
To find the present worth of the cost of furnishing, we need to discount the cash flow every 5 years over the 15-year ownership period. Using the given interest rate, we can calculate the present worth value.
Operating and Maintenance Cost ($5,448.69 K):
Similarly, we need to discount the annual operating and maintenance cost over the 15-year ownership period to find its present worth value.
Rental Income ($15,556.53 K):
The rental income is anticipated to be received annually over the 15-year ownership period. By discounting each year's rental income, we can calculate its present worth value.
By discounting the future cash flows using the given interest rate, we can determine the present worth values for the cost of furnishing, operating and maintenance cost, and rental income. This allows us to evaluate the profitability and financial viability of the new luxury hotel investment for Hill Lodge.
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The Budget Line is...
a. the bundle that the consumer most prefers
b. the set of bundles tht cost exactly m
c. a set of goods that the consumer can choose
select the best answer
The Budget Line is the set of bundles that can be purchased by a consumer with a given level of income or budget constraint. It represents the different combinations of goods or services that a consumer can afford to buy at current market prices. The Budget Line illustrates the trade-off between the quantities of two goods that a consumer can purchase within their budgetary constraints.
Option b, "the set of bundles that cost exactly m," is the most accurate answer. The Budget Line shows all the possible combinations of two goods that can be purchased with the total expenditure equal to the available budget (m). Each point on the Budget Line represents a specific combination of goods that can be purchased with the given budget. The Budget Line is determined by the prices of the goods and the consumer's income. Changes in income or prices will cause the Budget Line to shift or rotate. The slope of the Budget Line represents the relative prices of the two goods and reflects the rate at which one good can be exchanged for the other. In summary, the Budget Line represents the feasible combinations of goods that a consumer can choose from based on their budget constraint, making option b the correct answer.
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Show that consumer choices that maximize a strictly increasing and strictly quasi-concave utility must satisfy WARP.
To show that consumer choices that maximize a strictly increasing and strictly quasi-concave utility must satisfy WARP, we must first understand what each of these terms means.
WARP is an abbreviation for Weak Axiom of Revealed Preference. It's a principle of microeconomic theory that governs how consumers make purchasing choices. WARP is a principle that governs how consumers make purchasing decisions. It asserts that if an individual selects one item over another when the prices of both are the same, they will still select the same item if the price of the previously selected item increases. If a consumer always picks a higher-priced commodity over a cheaper one, WARP has been revealed. A utility function is a formula that reflects a consumer's preferences for various products or services. If the marginal utility of a commodity declines as the consumer's intake of that commodity rises, the utility function is said to be quasi-concave. When the marginal utility of a commodity rises as the consumer's intake of that commodity rises, the utility function is said to be strictly increasing. Hence, a utility function is said to be strictly increasing and strictly quasi-concave if it satisfies these two conditions. To show that consumer choices that maximize a strictly increasing and strictly quasi-concave utility must satisfy WARP, we need to prove the following theorem: Theorem: A consumer's choices satisfy WARP if and only if the consumer's utility function is quasi-concave. Proof:To show that a consumer's choices satisfy WARP if and only if the consumer's utility function is quasi-concave, we need to prove two things. First, we must prove that if a consumer's utility function is quasi-concave, their choices satisfy WARP. Second, we must prove that if a consumer's choices satisfy WARP, their utility function is quasi-concave.Proof of the first statement:If a consumer's utility function is quasi-concave, their choices satisfy WARP. To show this, we'll use a proof by contradiction. Suppose a consumer's choices do not satisfy WARP, despite having a quasi-concave utility function. If that's the case, the consumer must be choosing the same commodity at two different prices. However, since the utility function is quasi-concave, this implies that the consumer has two different utility levels at the same time. This contradicts the definition of a utility function, which is that it must provide a unique utility level for each commodity bundle. Hence, we conclude that a consumer's choices must satisfy WARP if their utility function is quasi-concave. Proof of the second statement: If a consumer's choices satisfy WARP, their utility function is quasi-concave. To show this, we'll use a proof by contradiction. Suppose a consumer's choices satisfy WARP, but their utility function is not quasi-concave. If that's the case, there must exist two commodity bundles x and y, where x is strictly preferred to y, but (x + y)/2 is strictly preferred to x and y. This violates the definition of a quasi-concave utility function, which requires that the upper contour sets of the utility function are convex. Hence, we conclude that if a consumer's choices satisfy WARP, their utility function must be quasi-concave.
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The profit you would make from this trade is $ You are an international shrimp trader. A food producer in the Czech Republic offers to pay you 2.1 million Czech koruna today in exchange for a year's supply of frozen shrimp. Your Thai supplier will provide you with the same supply for 2.9 million Thai baht today. If the current competitive market exchange rates are 25.53 koruna per dollar and 40.83 baht per dollar, what is the value of this exchange to you? The cost of the shrimp from the Thai supplier in dollars is $ 71026.21 . (Round to the nearest cent.) The amount the Czech producer is willing to pay for the shrimp in dollars is $ to the nearest cent.)
As an international shrimp trader, you are offered 2.1 million Czech koruna by a food producer in the Czech Republic in exchange for a year's supply of frozen shrimp. Your Thai supplier also offers the same supply for 2.9 million Thai baht. Given that the current competitive market exchange rates are 25.53 koruna per dollar and 40.83 baht per dollar.
We are required to determine the value of this exchange to you. Let's calculate the cost of the shrimp from the Thai supplier in dollars by converting 2.9 million Thai baht to dollars. The cost of shrimp in dollars is given by :Cost in dollars = Cost in Thai baht × (1 ÷ Exchange rate in Thai baht per dollar)Cost in dollars = 2,900,000 × (1 ÷ 40.83)Cost in dollars = 71,026.21 (rounded to the nearest cent)Therefore, the cost of the shrimp from the Thai supplier in dollars is $71,026.21. Now, let's calculate the amount that the Czech producer is willing to pay for the shrimp in dollars by converting 2.1 million Czech koruna to dollars. The amount in dollars is given by: Amount in dollars = Amount in Czech koruna × (1 ÷ Exchange rate in Czech koruna per dollar)Amount in dollars = 2,100,000 × (1 ÷ 25.53)Amount in dollars = 82,215.37 (rounded to the nearest cent)Therefore, the amount the Czech producer is willing to pay for the shrimp in dollars is $82,215.37. The profit you would make from this trade is the difference between the amount received and the cost incurred .Profit = Amount received - Cost incurred Profit = $82,215.37 - $71,026.21Profit = $11,189.16Therefore, the profit you would make from this trade is $11,189.16.
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Smell 5e and each pound of sewage costs 4c. The aim of the objective function for the Sweet Smal Fertizer Company should be to The optimum solution is: Number of pounds of compost in esch bag a Number of pounds of sewage waste in each bag = (round your reaponse to the Optimal solution value (in cents) = _ (round your response to the nearest whole cur
To determine the objective function for the Sweet Smal Fertilizer Company, we need more information about the specific goals or constraints of the company. The objective function represents the quantity that the company wants to maximize or minimize in their optimization problem.
Assuming the company wants to minimize the cost of sewage waste in each bag of compost, we can define the objective function as follows:
Objective function: Minimize the cost of sewage waste in each bag of compost.
Let's denote the number of pounds of compost in each bag as "x" and the number of pounds of sewage waste in each bag as "y." Since each pound of sewage waste costs 4 cents, the cost of sewage waste in each bag can be represented as 4y cents.
Thus, the objective function can be formulated as:
Objective function: Minimize the cost of sewage waste = 4y (in cents)
To find the optimal solution, we would need additional information such as any constraints or limitations on the number of pounds of compost or sewage waste that can be used per bag. Once we have that information, we can solve the optimization problem and obtain the optimal values for x and y.
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Comparing the Costs of Credit Cards [LO2] Bobby is trying to decide between two credit cards. One has no annual fee and an 21 percent interest rate, and the other has a $40 annual fee and an 8.2 percent interest rate. a. If Bobby pays his credit card balance in full each month, which card should he choose? He should most likely select the card with the lowest interest rate. He should select the card without the annual fee. b. If Bobby just pays the minimum payment and carries a balance from one month to the next, which card should he choose? He should select the card without the annual fee. He should most likely select the card with the lowest interest rate.
If Bobby pays his credit card balance in full each month, he should choose the card without the annual fee.
If Bobby just pays the minimum payment and carries a balance from one month to the next, he should choose the card with the lowest interest rate.
a. When Bobby pays his credit card balance in full each month, he avoids paying any interest charges. In this case, the annual fee becomes the deciding factor. By choosing the card without the annual fee, Bobby can avoid the extra cost associated with the fee, making it the more favorable option.
b. If Bobby only pays the minimum payment and carries a balance from one month to the next, the interest charges on the outstanding balance become significant. In this scenario, Bobby should prioritize selecting the card with the lowest interest rate. The lower interest rate would result in lower finance charges and potentially save Bobby money over time compared to the card with the higher interest rate.
By considering the two different scenarios, it becomes clear that the choice between the cards depends on Bobby's payment behavior. If he consistently pays the full balance, the card without the annual fee is preferred. However, if he carries a balance, the card with the lowest interest rate is more advantageous to minimize interest expenses.
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