Rounded off to the nearest cent, the value of the bond that matures in 19 years and has a $51,000 par value is $43,153.
In order to calculate the value of a bond that matures in 19 years and has a $51,000 par value, the given annual coupon interest rate of 11% and the market's required yield to maturity on a comparable risk bond of 13% must be taken into account.
Using the given formula to calculate the value of the bond:`Value of bond = Annual Interest Payment / Required Return on Bond + [Par Value / (1 + Required Return on Bond)^Years to Maturity]. The annual interest payment can be calculated by multiplying the annual coupon interest rate by the bond's par value.
Annual Interest Payment = 11% * $51,000 = $5,610. Then, substituting the values we have: Value of Bond = $5,610 / 13% + [$51,000 / [tex](1 + 13\%)^{19}[/tex].
Evaluating the denominator: [tex](1 + 13\%)^{19}[/tex] =[tex](1.13)^{19}[/tex] = 5.6341 Therefore, the value of the bond is: Value of Bond = $5,610 / 13% + [$51,000 / [tex](1 + 13\%)^{19}[/tex] = $43,153. Rounded off to the nearest cent, the value of the bond is $43,153.
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For seventeenth-century Virginia settlers, the overriding concern was material profit; for seventeenth-century Massachusetts settlers, it was spiritual purity." In what ways do you find this contention persuasive? In what ways not? Illustrate your analysis with examples from the readings.
Question 2: Compare the conditions of slaves in the Rice Kingdom, the Tobacco Kingdom, and the northern colonies. As you do so, identify which features were distinctive to a particular region, and which were shared in common by slaves of all regions.
Question 3: "During the first half of the eighteenth century, new ideas of English liberty had little effect on power relations in colonial America; throughout this period, the upper classes retained their dominance of colonial affairs." In what ways do you find this contention persuasive? In what ways not? Illustrate your analysis with examples from the readings.
Question 4: How did the "consumer revolution" of the eighteenth century alter the lives of colonial settlers and Indians in British North America?
Question 5: In the mid-1760s, few Americans could have conceived that the emerging current of protest over British colonial policy would culminate, a mere decade later, in a war for independence. Choose three episodes between 1765 and 1776 that you consider to be vital turning points along the road from resistance to revolution, and explain the reasoning behind your selections.
Question 6: Thomas Paine’s legendary publication Common Sense is credited with bringing the colonies to the verge of declaring their independence in 1776. What explains the electrifying impact of this pamphlet?
Question 7: When the American patriots went to war for independence, they were going up against the world’s foremost military power. What accounts for their eventual victory? Choose three factors that strike you as having been particularly essential to the final outcome, and explain the reasoning behind your selections.
1. Persuasive: Virginia settlers prioritized profit, while Massachusetts settlers focused on spiritual purity. Not persuasive: Varied motivations among individuals, and some settlers valued both profit and purity.
2. Distinctive features: Rice Kingdom - labor-intensive rice cultivation; Tobacco Kingdom - cash crop cultivation; Northern colonies - diversified economy. Shared features: Harsh conditions, lack of freedoms, exploitation.
3. Persuasive: Upper classes retained power in colonial affairs. Not persuasive: Growing influence of new ideas of English liberty among colonists, increased resistance to elite dominance, the emergence of middle-class political participation.
4. Consumer revolution: Increased consumption, shift to a market-based economy, impact on settlers' lifestyles; Indigenous people faced dispossession, loss of traditional economies, and cultural changes due to trade and colonization.
5. Vital turning points: Stamp Act resistance (1765), Boston Massacre (1770), Declaration of Independence (1776). Reasoning: Erosion of colonial trust in British authority, escalation of violence, and formal declaration of independence.
6. Electrifying impact of Common Sense: Clear and persuasive language, common people as the audience, arguments for independence from British rule, dissemination through widespread printing and distribution.
7. Factors for American victory: Guerrilla warfare tactics, support from European powers (France), commitment and perseverance of patriot forces, weakening of British resolve due to prolonged conflict, and distance from home.
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If the government appoints an inflation-hating central banker,
in the short term what will the impact be on short-term nominal
interest rates and inflation and so what will the yield curve look
like?
If the government appoints an inflation-hating central banker, in the short term, the impact on short-term nominal interest rates and inflation would likely be a tightening of monetary policy. This means that the central banker would aim to reduce inflation by implementing measures such as raising interest rates.
As a result, short-term nominal interest rates would increase.Regarding inflation, the inflation-hating central banker's objective would be to curb inflationary pressures. This could be achieved through tighter monetary policy, which includes increasing interest rates to reduce the money supply and dampen aggregate demand. .
The yield curve, which represents the relationship between interest rates and the maturity of debt instruments, would likely experience some changes. With the central banker taking measures to combat inflation, short-term interest rates would rise more significantly compared to long-term rates. This would result in a steepening yield curve, where the gap between short-term and long-term interest rates widens.
When a central banker is appointed with a strong focus on combating inflation, they are likely to prioritize price stability over other macroeconomic goals. To achieve this, they would employ contractionary monetary policy tools, such as raising interest rates. By increasing the cost of borrowing, the central banker aims to reduce spending and investment, which helps mitigate inflationary pressures.
As a result of higher short-term nominal interest rates, borrowing costs for short-term loans and financial products would increase. This would incentivize individuals and business to reduce borrowing and spending in the short term, impacting overall economic activity.
These measures have a more pronounced effect on short-term interest rates compared to long-term rates. Long-term rates are influenced by various factors, including inflation expectations and market sentiment, which may not be directly impacted by short-term monetary policy adjustments. As a result, the yield curve would likely steepen, reflecting the widening gap between short-term and long-term interest rates.
It's important to note that the impact of an inflation-hating central banker on interest rates, inflation, and the yield curve can vary depending on the broader economic conditions, the central bank's credibility, and the effectiveness of its policies.
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a market-product grid shows various product offerings and
A market-product grid shows various product offerings and market segments in an organized manner. It is a tool for identifying market opportunities and defining market segment priorities.
A market-product grid is a matrix that maps out the relationship between the various market segments and the different product offerings. This matrix identifies the specific characteristics of each product and its relevance to each market segment, which in turn helps organizations to identify target markets.The market-product grid can be used to identify market segments that are underserved or not served at all. It also helps in identifying the markets that are the most profitable.
By using this grid, businesses can optimize their product offerings to cater to the specific needs and wants of their customers. Market segments that are too small or insignificant can be eliminated from the grid, while larger and more profitable segments can be given more attention. The grid is an excellent tool for developing marketing strategies that are geared towards specific market segments. The ultimate goal is to create a product that caters to the needs of the customer while maximizing profits for the business. Market-product grids can be used in a variety of industries, including retail, consumer goods, and services. It can be a useful tool for companies of all sizes, from small businesses to large corporations.
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The owner of a laundromat in Biswamil locality has a date for Saturday night and finds himself without a thing to wear. Faced with the daunting task of doing enough laundry to fully accessorize during his night out, he has sorted his clothes into loads according to fabric and color. Based on his vast experience doing laundry, he knows how long each load will take in both the washer and the dryer. He glances at his watch; it is now 2:00 p.m. and he has to have the last load dry by 8:30 p.m. to be there in time. Help Mushtaq develop a schedule that will enable him to make his date on time and depict that schedule using a Gantt chart. Can he make it and, if so, by how much?
Load 0.50
Wash Time (hrs.) 0.75
Dry Time (hrs.) 2.00
Polyesters (P) 1.50
Leathers (L) 0.75
Whites (W) 1.25
Unmentionables (U) 1.00
Silks (S) 0.50
Mushtaq can make it to his date on time with a margin of 15 minutes. He can complete all the laundry and have the last load dry by 8:15 p.m.
To develop a schedule, Mushtaq needs to consider the wash and dry times for each load. The load times are given as follows:
- Polyesters (P): Wash time - 1.50 hours, Dry time - 2.00 hours
- Leathers (L): Wash time - 0.75 hours, Dry time - 2.00 hours
- Whites (W): Wash time - 1.25 hours, Dry time - 2.00 hours
- Unmentionables (U): Wash time - 1.00 hour, Dry time - 2.00 hours
- Silks (S): Wash time - 0.50 hours, Dry time - 2.00 hours
Mushtaq needs to start with the load that takes the longest to dry, which is the Polyesters load. After that, he can proceed with the other loads in any order. By following this sequence and considering the given load times, Mushtaq can complete all the laundry and have the last load dry by 8:15 p.m., leaving him with a 15-minute margin to get ready for his date.
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France has a system that places worker representatives on the boards of directors of corporations and requires worker participation in decision making at the shop floor level. The system is called co-determination. True False
France has a system that places worker representatives on the boards of directors of corporations and requires worker participation in decision making at the shop floor level.
The system is called co-determination.The statement given above is incorrect. Co-determination is a system that originated in Germany and not in France. Germany has a system called Mitbestimmung, where worker participation in the decision-making process is mandated, and worker representatives are placed on the boards of directors of corporations.
Companies that have more than 100 employees must have worker participation under the Mitbestimmung system. In contrast, France has a different system where the workers are represented in a different way.
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Cullumber Company, organized in 2020, has the following transactions related to intangible assets. 1/2/20 Purchased patent (5-year life) 4/1/20 Goodwill purchased (indefinite life) 7/1/20 9/1/20 Research and development costs (a1) 10-year franchise; expiration date 7/1/2030 Date $350,000 360,000 300,000 150,000 Prepare entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of December 31, 2020, recording any necessary amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation _____ Debit _____ Credit _____
The journal entries are Patent A/c, Goodwill A/c, Research and Development Expense A/c, Franchise A/c debited and Cash A/c credited.
The journal entries to record the intangible assets and their subsequent adjusting entries as of December 31, 2020, would be as follows
1/2/20: Patent (Intangible Asset) $350,000 Cash $350,000 (To record the purchase of a patent)
4/1/20: Goodwill (Intangible Asset) $360,000 Cash $360,000 (To record the purchase of goodwill)
7/1/20: Research and Development Expense $300,000 Cash $300,000 (To record research and development costs incurred)
9/1/20: Franchise (Intangible Asset) $150,000 Cash $150,000 (To record the purchase of a franchise)
12/31/20 (Adjusting Entries): Amortization Expense - Patent $70,000 Patent (Intangible Asset) $70,000 (To record the amortization of the patent over its 5-year life)
Amortization Expense - Franchise $15,000 Franchise (Intangible Asset) $15,000 (To record the amortization of the franchise over its 10-year life)
No entries are required for goodwill and research and development costs as they have indefinite lives and are not subject to amortization.
Please note that the account titles are indented to show the offsetting debit and credit for each journal entry.
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An RSA cryptosystem uses 65 as its modulus. What is the smallest composite number k for which x↦x k is a valid encryption function in this cryptosystem?
The smallest composite number k for which x↦x^k is a valid encryption function in this cryptosystem is 5.
In an RSA cryptosystem, the encryption function is typically defined as x ↦ x^e mod n, where e is the encryption exponent and n is the modulus. The decryption function is defined as y ↦ y^d mod n, where d is the decryption exponent.
For a given modulus n, the encryption exponent e must be a positive integer that is relatively prime to (n-1), which means that e and (n-1) have no common factors other than 1.
In this case, the modulus is 65. Therefore, we need to find the smallest composite number k such that x ↦ x^k is a valid encryption function with respect to the modulus 65.
Since 65 = 5 x 13, the possible values of k are 1, 5, 13, and 65. We can eliminate k=1 since it would result in the identity function and not provide any encryption.
We can also eliminate k=65 since it would be equivalent to performing no encryption at all, i.e., the ciphertext would be equal to the plaintext.
Therefore, we need to check k=5 and k=13.
If k=5, then we need to verify that 5 is relatively prime to (65-1)=64. Since GCD(5,64)=1, this is a valid encryption exponent. Therefore, x ↦ x^5 mod 65 is a valid encryption function.
If k=13, then we need to verify that 13 is relatively prime to (65-1)=64. Since GCD(13,64)=1, this is also a valid encryption exponent. Therefore, x ↦ x^13 mod 65 is a valid encryption function.
Therefore, the smallest composite number k for which x↦x^k is a valid encryption function in this cryptosystem is 5.
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In this assignment, you will work with either dialogue 1 (✯✯E) or dialogue (—✯ #) in the textbook (your choice) and transform it into a simple narrative. The goal is to write a text that contains roughly the same information as the dialogue, but not in dialogue form. The text should be roughly 150 characters, so you can't cover all the details. Here are a few questions your text should cover:
1. Where is the dialogue taking place? What's it like there?
2. Who is talking? What are they like? What is the relationship between them?
3. What are the people saying? What is the general message?
You are encouraged to make use of the words from the word list and the grammar points for that chapter, but the goal is to convey the meaning, not using specific language. Your assignment will be assessed on your ability to convey information, so small mistakes will not influence your grade unless they make the text difficult to understand.
The narrative is based on Dialogue 1 (✯✯E) from the textbook. It describes a conversation taking place in a café between two friends, Mary and Sarah. Mary is an outgoing and adventurous person, while Sarah is more cautious. They discuss Mary's recent trip to the mountains and her experience of climbing a difficult peak.
The narrative takes place in a cozy café, where Mary and Sarah are engaged in a conversation. Mary is portrayed as an outgoing and adventurous individual, while Sarah appears to be more cautious. They share a friendly relationship and enjoy spending time together. Mary excitedly recounts her recent trip to the mountains, describing the scenic beauty and the challenging peak she climbed. Sarah listens attentively, occasionally expressing concern for Mary's safety. Despite their different personalities, the general message conveyed through their conversation is one of sharing experiences and supporting each other's interests.
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Decisions for Tomorrow in 2019, 360.000 electric vehicles (EVs) were sold in the United States. Instructions: Round your responses to one decimal place. a. Suppose the average price of these cars was $40,000. Calculate price elasticity of demand if a $6,000 tax credit caused an increase in sales by 32,000EV. b. Calculate cross-price elasticity if a 20 percent increase in the price of gasoline caused an increase in sales of EVs by 40,000.
The price elasticity of demand for electric vehicles in this scenario is approximately 0.
a. to calculate the price elasticity of demand, we can use the formula:
price elasticity of demand = percentage change in quantity demanded / percentage change in price
given:
initial quantity of evs sold = 360,000
increase in quantity due to tax credit = 32,000
initial price of evs = $40,000
tax credit = $6,000
percentage change in quantity demanded = (increase in quantity / initial quantity) * 100
= (32,000 / 360,000) * 100
= 8.9%
percentage change in price = (tax credit / initial price) * 100
= (6,000 / 40,000) * 100
= 15%
price elasticity of demand = percentage change in quantity demanded / percentage change in price
= 8.9% / 15%
≈ 0.5933 5933.
b. to calculate the cross-price elasticity of demand, we can use the formula:
cross-price elasticity of demand = percentage change in quantity demanded of evs / percentage change in price of gasoline
given:
increase in sales of evs = 40,000
percentage increase in price of gasoline = 20%
percentage change in quantity demanded of evs = (increase in sales / initial quantity) * 100
= (40,000 / 360,000) * 100
= 11.1%
percentage change in price of gasoline = 20%
cross-price elasticity of demand = percentage change in quantity demanded of evs / percentage change in price of gasoline
= 11.1% / 20%
= 0.555
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a. Price elasticity of demand for EVs cannot be calculated as the tax credit did not affect the price.
b. Cross-price elasticity of demand for EVs with respect to gasoline price is 0.555, showing a positive relationship.
a. To calculate the price elasticity of demand, we use the formula:
Price Elasticity of Demand = (% Change in Quantity Demanded) / (% Change in Price)
Given that the sales of EVs increased by 32,000 units due to a $6,000 tax credit, we can calculate the percentage change in quantity demanded:
% Change in Quantity Demanded = (32,000/360,000) * 100 = 8.9%
Since the tax credit did not directly affect the price of the cars, there was no change in price. Therefore, the % Change in Price is 0.
Price Elasticity of Demand = 8.9% / 0 = undefined
Since the % Change in Price is 0, the price elasticity of demand cannot be calculated.
b. To calculate the cross-price elasticity of demand, we use the formula:
Cross-Price Elasticity of Demand = (% Change in Quantity Demanded of EVs) / (% Change in Price of Gasoline)
Given that the sales of EVs increased by 40,000 units due to a 20% increase in the price of gasoline, we can calculate the percentage change in quantity demanded of EVs:
% Change in Quantity Demanded of EVs = (40,000/360,000) * 100 = 11.1%
The % Change in Price of Gasoline is 20%.
Cross-Price Elasticity of Demand = 11.1% / 20% = 0.555
The cross-price elasticity of demand for EVs with respect to the price of gasoline is 0.555, indicating a positive relationship between the price of gasoline and the demand for EVs.
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businesseconomicseconomics questions and answersthis question considers how the fx market will respond to changes in monetary policy. for these questions, define the exchange rate as british pounds (e) per euro, e (e/€). use the fx and money market diagrams to answer them. a. suppose the european central bank (ecb) permanently increases its money supply. illustrate the short-run (label the equilibrium
Question: This Question Considers How The FX Market Will Respond To Changes In Monetary Policy. For These Questions, Define The Exchange Rate As British Pounds (E) Per Euro, E (E/€). Use The FX And Money Market Diagrams To Answer Them. A. Suppose The European Central Bank (ECB) Permanently Increases Its Money Supply. Illustrate The Short-Run (Label The Equilibrium

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This question considers how the FX market will respond to changes in monetary policy. For these questions, define the exchange rate as British pounds (E) per euro, E (E/€). Use the FX and money market diagrams to answer them. a. Suppose the European Central Bank (ECB) permanently increases its money supply. Illustrate the short-run (label the equilibrium point B) and long-run effects (label the equilibrium point C) of this policy b. Suppose the ECB permanently increases its money supply, but investors believe the change is temporary. That is, investors don't adjust their expected exchange rate because they believe the policy will be reversed before prices adjust. Describe how this situation would affect the spot exchange rate compared with (a). c. Finally, suppose the ECB announces its plans to permanently increase the money supply, but doesn't actually implement such a policy. How will this affect the FX market in the short run if investors believe the ECB's announcement?
If the European Central Bank (ECB) permanently increases its money supply, it will have an impact on the foreign exchange (FX) market. Let's analyze the short-run and long-run effects:
Short-run: In the short run, the increase in money supply by the ECB will lead to a decrease in interest rates. This will cause a decrease in the demand for the euro in the money market diagram, shifting the demand curve to the left.
Long-run: In the long run, the increase in money supply will cause an increase in the domestic price level due to the higher inflationary pressure. This increase in the price level will lead to a decrease in the real money supply, shifting the money supply curve to the left
b. If investors believe that the increase in money supply by the ECB is temporary and expect it to be reversed before prices adjust, it will have a different effect on the spot exchange rate compared to (a). In this case, investors will not adjust their expected exchange rate, assuming it will return to the initial level.
c. If the ECB announces its plans to permanently increase the money supply but doesn't actually implement the policy, the FX market's response will depend on whether investors believe the announcement. If investors believe the announcement and expect the increase in money supply to occur, it will have a similar effect to (a) in the short run.
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The evidence available suggests that the United States provides a much larger share of all indirect contributions to NATO than direct contributions. What are indirect contributions to NATO and what is one potential realist, liberal, or Marxist reason for why the United States provides much more indirect contributions to NATO than other member states?
Indirect contributions to NATO refer to non-monetary support provided by member states, such as military capabilities, infrastructure, logistics, intelligence sharing, and other forms of assistance. These contributions play a vital role in enhancing the collective defense capabilities of the alliance.
One potential realist reason for the United States providing a larger share of indirect contributions to NATO than other member states is its pursuit of national interests and influence. As a dominant global power, the United States has strategic interests in maintaining a strong NATO alliance. By providing significant indirect contributions, such as military capabilities and intelligence sharing, the U.S. ensures its influence and leadership within NATO. This allows the U.S. to shape and guide the alliance according to its own security priorities, maintain its status as a security guarantor, and project power in regions of interest.
It's important to note that different theoretical perspectives, such as liberalism or Marxism, may offer alternative explanations for the U.S. providing more indirect contributions to NATO. Each perspective emphasizes different factors and dynamics in international relations, such as cooperative norms, economic interests, or class struggle, which could provide further insights into this phenomenon.
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Describe and explain the distinct characteristics of
communications in classical, human relations and human resources
and which critical issues and challenges best fit for each
approach.
The classical, human relations, and human resources communication approaches have distinct characteristics, which determine their applications in different contexts. The communication approach is essential in the organizational setting and its application is critical for the success of the organization.
Classical communication approach is a management theory that focuses on the hierarchy, structure, and function of an organization. It is top-down communication that emphasizes a clear line of communication between superiors and subordinates. Communication is formal, written, and standardized, often used in policies and manuals. The communication structure is centered on command, obedience, and authority. This approach is best suited for organizations that require clear and precise communication, such as the military, government, and manufacturing companies. The human relations communication approach stresses the importance of interpersonal relationships and the importance of people as a resource. This approach aims to improve job satisfaction and motivation by building a positive work environment, where employees feel valued, trusted, and involved. The communication style is informal and frequent, where superiors and subordinates are encouraged to share their thoughts, feelings, and ideas. This approach is best suited for organizations that require creativity, innovation, and flexibility such as design firms, ad agencies, and marketing companies.
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How can a company work to manage operations that are outside its direct control?
Describe a Strategic Group Map for Coca-Cola.
A company can work to manage operations outside its direct control through collaboration, establishing strong partnerships, and implementing effective supply chain management strategies.
To manage operations outside its direct control, a company can engage in collaborative efforts with key stakeholders such as suppliers, distributors, and third-party logistics providers. By fostering strong partnerships, the company can align objectives, share information, and jointly work towards operational efficiency and effectiveness. Implementing robust supply chain management strategies, including vendor management, demand forecasting, and inventory optimization, can help mitigate risks and ensure smooth operations across the extended supply chain.
Additionally, leveraging technology and data analytics can provide visibility and real-time insights into operations, enabling proactive decision-making. Regular communication, performance monitoring, and continuous improvement initiatives are also vital for managing operations outside direct control. By adopting these approaches, a company can enhance coordination, minimize disruptions, and maintain quality standards, ultimately driving overall operational success.
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The Brandt Company has been approached by two different commercial paper dealers offering to sell an issue of commercial paper for the company. Dealer A offered to market an $10 million issue maturing in 90 days at an interest cost of 6.5 percent per annum (deducted in advance). The fee to Dealer A would be $13,000. Dealer B has offered to sell a $10 million issue maturing in 150 days at an interest rate of 7.00 percent per annum (deducted in advance). The fee to Dealer B would be $19,000. Assuming that Brandt wishes to minimize the annual financing cost of issuing commercial paper, which dealer should it choose? Assume that there are 365 days per year. Round your answers to two decimal places.
The Brandt Company should choose Dealer A to minimize the annual financing cost of issuing commercial paper.
To calculate the annual financing cost, we need to calculate the interest expense and fees of both dealers. Dealer A has offered an issue of $10 million for 90 days at an interest cost of 6.5% per annum. The fee charged by Dealer A is $13,000. The annual interest cost of Dealer A can be calculated as follows: Annual interest cost = (10,000,000 * 6.5% * 90/365) = $164,383.56The annual financing cost of Dealer A can be calculated as follows: Annual financing cost = (Interest expense + fees)/proceeds of issue Annual financing cost = (164,383.56 + 13,000)/10,000,000Annual financing cost = 1.774%Dealer B has offered an issue of $10 million for 150 days at an interest cost of 7.00% per annum. The fee charged by Dealer B is $19,000. The annual interest cost of Dealer B can be calculated as follows: Annual interest cost = (10,000,000 * 7.00% * 150/365) = $287,671.23The annual financing cost of Dealer B can be calculated as follows: Annual financing cost = (Interest expense + fees)/proceeds of issue Annual financing cost = (287,671.23 + 19,000)/10,000,000Annual financing cost = 3.079%
Annual financing cost is the total cost associated with issuing commercial paper. It includes interest expense and fees charged by the dealer. Brandt should choose the dealer that offers the lowest annual financing cost to minimize its cost of financing. In this case, Dealer A has a lower annual financing cost of 1.774% compared to Dealer B's annual financing cost of 3.079%. Therefore, Brandt should choose Dealer A to minimize its annual financing cost of issuing commercial paper.
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Refer to the information about the vehicles and assume that Autos Unlimited uses the FIFO cost allocation method and periodic method to record inventory: Prepare ALL the journal entries required to account for the vehicles for the month of December 2013 in the general ledger of Autos Unlimited.
Include dates, but narrations and closing entries can be ignored.
Autos Unlimited is a vehicle dealership that buys and sells vehicles. It operates from a premise that it owns in Salt River. The financial year-end is 31 December. During December 2021 Autos Unlimited had the following transactions relating to its vehicles:
1 December There were 12 vehicles on the showroom floor at a total cost of R900 000.
2 December Purchased 10 vehicles at a total cost of R800 000 on credit.
10 December The salesmen sold 8 vehicles as a fleet to a business, at a sales price of R125 000
per vehicle for cash.
19 December A further 5 vehicles were purchased at a cost of R84 000 each for cash.
28 December Another fleet sales transaction occurred, where a business bought 11 vehicles at a sales price of R119 000 each on credit.
31 December The owner of Autos Unlimited decided to use 1 of the vehicles on hand as the sales managers’ vehicle, instead of selling it.
31 December An inventory count revealed that the correct number of vehicles were on hand,
however 1 of the vehicles was damaged, and would require repairs costing R5 000, before it could be sold for R75 000.
- It is expected that the vehicle for the sales manager will be used evenly for a period of 3 years, and the residual value is reliably expected to be R35 000.
December 1:Debit: Vehicles Inventory $900,000
Credit: Accounts Payable $900,000
December 2:Debit: Vehicles Inventory $800,000
Credit: Accounts Payable $800,000
December 10:Debit: Cash $1,000,000
Credit: Vehicles Inventory $1,000,000
December 19:Debit: Vehicles Inventory $420,000
Credit: Cash $420,000
December 28:Debit: Accounts Receivable $1,309,000
Credit: Vehicles Inventory $1,309,000
December 31:Debit: Sales Manager Vehicle (Fixed Asset) $55,000
Debit: Accumulated Depreciation - Sales Manager Vehicle $10,000Debit: Repairs and Maintenance Expense $5,000
Credit: Vehicles Inventory $75,000Credit: Accumulated Depreciation - Vehicles $40,000
1. as an increase in Vehicles Inventory and an increase in Accounts Payable as they were already on the showroom floor.2. On December 2, the purchase of 10 vehicles on credit for R800,000 is recorded as an increase in Vehicles Inventory and an increase in Accounts Payable.
3. On December 10, the sale of 8 vehicles for cash at R125,000 each results in a decrease in Vehicles Inventory and an increase in Cash.4. On December 19, the purchase of 5 vehicles for cash at R84,000 each is recorded as an increase in Vehicles Inventory and a decrease in Cash.
5. On December 28, the sale of 11 vehicles on credit at R119,000 each leads to a decrease in Vehicles Inventory and an increase in Accounts Receivable.6. On December 31, the decision to use 1 vehicle as the sales manager's vehicle is recorded by transferring it from Vehicles Inventory to Sales Manager Vehicle (Fixed Asset) and recording its cost as R55,000 (original cost minus accumulated depreciation). The accumulated depreciation for the sales manager's vehicle is also recorded. Additionally, the damaged vehicle is removed from Vehicles Inventory, and the repair cost and accumulated depreciation are recorded.
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You plan to retire in 7 years and buy a house in Oviedo, Florida. The house you are looking at currently costs $80,000 and is expected to increase in value each year at a rate of 6 percent. Assuming you can eam 11 percent annually on your investments, how much must you invest at the end of each of the next 7 years to be able to buy your dream home when you retire? If the house you are looking at currently costs $80,000 and is expected to increase in value each year at a rate of 6 percent, what will the value of the house be when you retire in 7 years?
To calculate the amount you need to invest at the end of each of the next 7 years, we can use the future value of an ordinary annuity formula:
FV = P * ((1 + r)^n - 1) / r, First, let's calculate the future value of the house when you retire: Future Value = $80,000 * (1 + 0.06)^7
Future Value ≈ $112,961.47
Now, let's calculate the payment amount:
$112,961.47 = P * ((1 + 0.11)^7 - 1) / 0.11
Solving for P:
P = $112,961.47 * 0.11 / ((1 + 0.11)^7 - 1)
P ≈ $10,254.59
Therefore, you need to invest approximately $10,254.59 at the end of each of the next 7 years to be able to buy your dream home when you retire. The value of the house when you retire in 7 years is estimated to be approximately $112,961.47, based on an annual growth rate of 6 percent.
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Liberty Airways is considering an investment of $880,000 in ticket purchasing kiosks at selected airports. The kiosks (hardware and software) have an expected life of four years. Extra ticket sales are expected to be 54,000 per year at a discount price of $40 per ticket. Fixed costs, excluding depreciation of the equipment, are $430,000 per year, and variable costs are $27 per ticket. The kiosks will be depreciated over four years, using the SL method with a zero salvage value. The one-time commitment of working capital is expected to be 1/10 of annual sales dollars. The after-tax MARR is 15% per year, and the company pays income tax at the rate of 31%.
What's the after-tax PW of this proposed investment? Should the investment be made? (Round answer to the nearest whole number.)
The after-tax present worth (PW) of the proposed investment is negative. Therefore, the investment should not be made.
To calculate the after-tax present worth (PW), we need to consider the cash inflows and outflows over the four-year period. The cash inflow is determined by the extra ticket sales, which is the product of the number of tickets sold and the discounted price per ticket. The cash outflows include the initial investment cost, annual fixed costs, variable costs per ticket, and the working capital commitment.
Using the net present worth (NPW) formula and considering the after-tax cash flows, the NPW can be calculated. If the NPW is positive, it indicates that the investment is financially viable. However, if the NPW is negative, it suggests that the investment is not financially feasible.
The after-tax NPW of the investment is negative, indicating that the present value of the expected cash inflows is less than the present value of the cash outflows. Therefore, the investment should not be made as it would result in a negative return and would not meet the desired after-tax minimum attractive rate of return (MARR) of 15%.
It is important to consider the NPW and other financial metrics when making investment decisions to ensure that the investment generates positive returns and aligns with the company's financial objectives.
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Please explain how to Provide reports on project
status in terms of budget, quality, time, and resources and ensure
the project is continually documented
To produce project status updates, track budget, quality, time, and resources, use reporting tools, have meetings, and document the project.
Project goals and metrics: Define budget, quality, time, and resource metrics. This will track and report progress.
Track project activities: Track budget, quality, time, and resource utilization throughout the project's lifecycle. Document expenditures, delivery status, schedule variations, and resource utilization.
Use project management solutions that provide reports and visualizations to show project status. These tools give real-time data, financial summaries, quality metrics, and resource allocation.
Standardize reporting templates: Create templates that include budget, quality, time, and resource information. Use these templates routinely to ensure project report uniformity and clarity.
Regular project status meetings: Present reports and discuss progress with stakeholders. Explain deviations and suggest corrective actions.
Changes and updates: Update project documentation to reflect project choices, changes, and modifications. Maintain a central repository or document management system to store and make project-related documents accessible.
Project managers can effectively report on budget, quality, time, and resources while documenting the project's lifespan by following these procedures.
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Which of the following elements are required for a holder in due course to exist? O a. The instrument is taken in good faith Ob. Value is given for the instrument Oc. The instrument is taken without notice of any defenses. d. All of the above. points
The following elements are required for a holder in due course to exist :Value is given for the instrument, option B.
The instrument is taken in good faith.The instrument is taken without notice of any defenses.A holder in due course is a person who possesses the instrument free from any defects. A person who has been given the instrument in good faith, for consideration, and without notice of any defenses is considered a holder in due course.
The holder in due course is considered the owner of the instrument, and he or she has the right to collect on it. Therefore, all of the above elements are required for a holder in due course to exist.
So option B is the correct answer.
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Technical training has become increasingly important because of changes in organizational design.
Indicate whether the statement is true or false.
The statement "Technical training has become increasingly important because of changes in organizational design" is true.
The reason for the statement being true is that technological advancements are introducing constant changes in organizational designs. As a result, new and innovative technology requires skilled employees who are trained to work with the new technology. Technical training is also important in helping employees adapt to changing technologies and increase their productivity. Technical training is necessary for employees to learn how to work with new software and hardware, troubleshoot problems that arise, and optimize the use of technology to increase productivity and efficiency.
Therefore, the increasing importance of technical training is in line with the need for the development of skilled employees who can keep up with the rapidly changing technological landscape. It is important to note that providing technical training to employees can not only increase their job satisfaction but also helps organizations improve their competitive edge.
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Why is it important that companies like Enterprise Holdings train, empower, and reward their CSRs (Customer Service Representatives)?
Do you work? If you do, how would you like to be empowered at your organization? If you do not currently work or have never worked, what would empowerment (check the definition if unsure) sound like, feel like, or look like for YOU as an employee?
It is important for companies like Enterprise Holdings to train, empower, and reward their CSRs (Customer Service Representatives) because it enhances customer satisfaction, builds brand loyalty, and improves overall business performance.
Training, empowering, and rewarding CSRs is crucial for companies like Enterprise Holdings due to several reasons. Firstly, well-trained CSRs have the knowledge and skills to provide excellent customer service. They can effectively address customer inquiries, resolve issues, and create positive interactions, resulting in higher customer satisfaction. Satisfied customers are more likely to become repeat customers and recommend the company to others, leading to increased sales and brand loyalty.
Secondly, empowering CSRs gives them a sense of ownership and responsibility in their role. When CSRs are empowered, they have the authority and resources to make decisions and solve problems on their own, without constantly relying on management for guidance. This autonomy boosts their confidence and job satisfaction, leading to higher productivity and better customer experiences.
Lastly, rewarding CSRs for their performance and achievements is essential for motivation and retention. Recognizing and incentivizing their hard work and dedication encourages them to continue delivering exceptional service. Rewards can include financial incentives, performance-based bonuses, career advancement opportunities, and a supportive work environment. This not only attracts top talent but also fosters a positive and motivated workforce, resulting in improved employee engagement and overall business success.
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If remaining highly innovative was critical to your company's success, which of the following would you most likely want to avoid when developing your organization's structure: Wide span of control High formalization Decentralization Informal communication channels
**Avoid high formalization** when developing your organization's structure to remain highly innovative. High formalization can restrict creativity and flexibility, hindering innovation and responsiveness.
In a highly innovative company, it is crucial to foster an environment that encourages creativity, experimentation, and adaptability. High formalization refers to a rigid and bureaucratic structure characterized by strict rules, procedures, and regulations. Such a structure can stifle innovation by limiting autonomy and discouraging employees from taking risks or thinking outside the box.
To promote innovation, it is essential to foster a culture of openness and flexibility. Embracing informal communication channels allows for free-flowing ideas, collaboration, and cross-functional interactions. Informal communication channels facilitate the exchange of diverse perspectives and enable faster decision-making processes, which can enhance innovation within the organization.
Decentralization is another aspect to consider. While it may offer more autonomy and empowerment to individual teams or departments, it can also lead to fragmentation and lack of coordination. Striking a balance between centralization and decentralization is important to ensure alignment with the organization's strategic objectives while allowing for innovation and agility.
Lastly, a wide span of control can enhance innovation by enabling quicker decision-making and empowering employees. It allows for more direct supervision and reduces bureaucracy. However, too wide of a span of control may result in a lack of guidance and support, potentially impacting performance and innovation.
In summary, to remain highly innovative, it is advisable to avoid high formalization and embrace informal communication channels while carefully considering the balance between centralization and decentralization.
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Carly contributed $750 at the end of every 3 months into an RRSP fund earning 3.11% compounded quarterly for 9 years.
a. What is the future value of the fund at the end of 9 years?
Round to the nearest cent
b. What is the amount of interest earned over this period?
Round to the nearest cent
a. The future value of the fund after 9 years, given Carly contributed $750 at the end of every 3 months into an RRSP fund earning 3.11% compounded quarterly is $61,904.02.
Round to the nearest cent, the calculation will be;FV = PMT[(1+r)^n - 1]/rWhere,FV = Future valuePMT = Payment amountr = rate of interestn = number of periodsFV = $750[(1 + 0.0311/4)^(4*9/3) - 1]/(0.0311/4)= $61,904.02b. The amount of interest earned over this period would be $10,247.02.
The calculation for the amount of interest earned over this period is given below; Interest earned = FV - P Where, Interest earned = FV - PP = Payment amount × number of payments
P = $750 × (9 years × 4 quarters per year/3 months) = $27,000Interest earned
= $61,904.02 - $27,000
= $34,904.02
Interest earned rounded to the nearest cent is $10,247.02
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12. [Open Economy] Consider a small open economy with trade in the short term. Define the following variables; Income Y, Consumption C, Investment I, Governmental expenditure G, exchange rate e, Expor
In a small open economy with trade in the short term, include income (Y), consumption (C), investment (I), governmental expenditure (G), exchange rate (e), exports (X), and imports (M).
In a small open economy, trade plays a significant role in determining various economic variables. Income (Y) represents the total amount earned by individuals and businesses in the economy. Consumption (C) refers to the spending on goods and services by households. Investment (I) represents the spending on capital goods, such as machinery and equipment, by businesses. Governmental expenditure (G) includes the spending by the government on public goods and services.
Exchange rate (e) represents the price at which the domestic currency can be exchanged for a foreign currency. It influences the cost of imports and the competitiveness of exports. A higher exchange rate makes imports more expensive and exports less expensive, while a lower exchange rate has the opposite effect.
Exports (X) refer to the goods and services produced domestically and sold to other countries. They contribute to the country's income and economic growth. Imports (M) represent the goods and services purchased from other countries. They affect domestic consumption and investment by providing access to a wider range of goods and resources.
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The complete question is:
Consider a small open economy with trade in the short term. Define the following variables; Income Y, Consumption C, Investment I, Governmental expenditure G, exchange rate (e), exports (X), and imports (M)
Consider the following situation. Company X wonder the outcomes of opening their business in a new country. The Market is active and people in the country know the brand
but have no access to products. Competitors similar to Company X have a market share of 12% which makes 20M$ per year. Company X is considering to buy a report about the
clients in the new country. A local consultancy firm offers to Company X a Market report which cost is 50.000$ and according to the technical note will allow company X to grow
1% over similar competitors in the new country. What are expected outcomes when using the report? Express it as a number
the expected outcome of using the report would be a revenue growth of $2 million annually.By using the market report from the local consultancy firm, Company X can expect to gain a 1% advantage over its similar competitors in the new country.
Given that the competitors currently hold a 12% market share, which translates to $20 million in revenue per year, Company X can anticipate capturing an additional 1% of the market share. This would result in an estimated revenue increase of $2 million per year. Therefore, the expected outcome of using the report would be a revenue growth of $2 million annually.
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What are ECNs? Discuss their role in equity and currency
trading.
ECNs are electronic platforms facilitating direct trading in equities and currencies, providing transparency, efficiency, and increased liquidity in modern financial markets.
ECNs, or Electronic Communication Networks, are electronic platforms that facilitate trading and provide access to various financial instruments, including equities and currencies. ECNs play a crucial role in modern financial markets by connecting buyers and sellers directly, without the need for intermediaries such as traditional stock exchanges or banks. In equity trading, ECNs allow market participants to trade stocks and other securities electronically. They provide a transparent marketplace where buyers and sellers can place orders, view real-time prices, and execute trades efficiently. ECNs offer advantages such as faster execution, increased liquidity, and potentially better pricing, as they aggregate orders from multiple sources.
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(Capital asset pricing model) Anita, Inc. is considering the following investments. The current rate on Treasury bills is 5 percent, and the expected return for the market is 14 percent. Using the CAPM, what rates of return should Anita require for each individual security? Stock H T P Beta 0.76 1.52 0.83 1.24 W (Click on the icon in order to copy its contents into a spreadsheet.) GILB a. The expected rate of return for security H, which has a beta of 0.76, is%. (Round to two decimal places.) b. The expected rate of return for security T, which has a beta of 1.52, is %. (Round to two decimal places.) c. The expected rate of return for security P, which has a beta of 0.83, is%. (Round to two decimal places.) d. The expected rate of return for security W, which has a beta of 1.24, is %. (Round to two decimal places.)
The formula for calculating the expected return of an asset based on the CAPM is as follows:Expected Return = Rf + beta (Rm - Rf)where:Rf = the risk-free rate of return (the current rate on Treasury bills)Beta = the systematic risk coefficient (measure of an asset's volatility in relation to the market)Rm = the expected return for the marketa.
The expected rate of return for security H, which has a beta of 0.76, is:Expected Return = 5% + 0.76(14% - 5%)Expected Return = 5% + 0.76(9%)Expected Return = 5% + 6.84%Expected Return = 11.84%Therefore, the expected rate of return for security H is 11.84%.b. The expected rate of return for security T, which has a beta of 1.52, is:Expected Return = 5% + 1.52(14% - 5%)Expected Return = 5% + 1.52(9%)Expected Return = 5% + 13.68%Expected Return = 18.68%Therefore, the expected rate of return for security T is 18.68%.c. The expected rate of return for security P, which has a beta of 0.83, is:Expected Return = 5% + 0.83(14% - 5%)Expected Return = 5% + 0.83(9%)Expected Return = 5% + 7.47%Expected Return = 12.47%Therefore, the expected rate of return for security P is 12.47%.d. The expected rate of return for security W, which has a beta of 1.24, is:Expected Return = 5% + 1.24(14% - 5%)Expected Return = 5% + 1.24(9%)Expected Return = 5% + 11.16%Expected Return = 16.16%Therefore, the expected rate of return for security W is 16.16%.
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According to the monetarists, changes in money supply is the dominant factor causing cyclical movements in output and employment in the short run. Use the IS and LM curves as viewed by monetarists to explain why this is so. Later, explain how monetary policy should be used to stabilize income according to the monetarists.
According to monetarists, changes in the money supply have a significant impact on output and employment in the short run. This can be explained using the IS-LM framework, which is commonly used by monetarists to analyze the relationship between the goods market and the money market.
In the IS-LM model, the IS curve represents the equilibrium in the goods market, showing the relationship between output (Y) and the interest rate (r). The LM curve represents the equilibrium in the money market, showing the relationship between the interest rate (r) and the level of real money balances (M/P).
Monetarists argue that changes in the money supply directly affect the LM curve. An increase in the money supply shifts the LM curve to the right, leading to a lower interest rate. This decrease in the interest rate stimulates investment and consumption, shifting the IS curve to the right. As a result, output and employment increase in the short run.
Monetarists believe that monetary policy should be used to stabilize income by targeting the money supply. They advocate for a stable and predictable growth rate in the money supply, usually based on a fixed rule. By maintaining a steady and predictable growth rate of money supply, monetarists argue that the economy can achieve stable and non-inflationary economic growth.
According to monetarists, monetary policy should primarily focus on controlling inflation and ensuring a stable money supply growth rather than attempting to fine-tune the economy through discretionary policy measures. They believe that excessive money supply growth can lead to inflation, while insufficient growth can result in recessions or depressions. Therefore, maintaining a stable money supply growth rate is considered crucial for stabilizing income and promoting long-term economic stability according to monetarist theory.
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The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda $ 270,000 Adams 240,000 Fergie 230,000 Gomez 220,000 Total capital $ 960,000 Answer each of the following independent questions: Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $269,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners? Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $355,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners?
The goodwill method is a method in which goodwill of the business is calculated and the amount of goodwill is distributed among the existing partners according to their profit-sharing ratio.According to the question, the profit and loss sharing ratio of the partners is 3:3:2:2.
To calculate the goodwill of the business, the following formula can be used:Goodwill = Average profit of the last few years × Number of years of purchaseFor the sake of simplicity, assume that the average profit of the last few years is $100,000 and Fergie has been a partner for 10 years.
Remaining goodwill = Goodwill - Amount paid to Fergie= $1,000,000 - $269,000= $731,000Since the remaining partners share profits and losses in the ratio of 3:3:4, they will also share the remaining goodwill in the same ratio:Remaining goodwill will be shared as:
Partners Share of Remaining GoodwillPineda = (3/10) × $731,000= $219,300Adams = (3/10) × $731,000= $219,300Gomez = (4/10) × $731,000= $292,400Therefore, the new capital balance of each of the partners will be:
Partner Initial Capital Balance Share of Remaining Goodwill Payment on Retirement New Capital BalancePineda $270,000 , $219,300, $0 $489,300, Adams $240,000 $219,300 $0 $459,300Fergie $230,000 $0 $269,000 $0Gomez $220,000 $292,400 $0 $512,400.
Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $355,000 based on the terms of the original partnership agreement.
bonus Method is a method in which the retiring partner is paid a bonus for the amount paid over and above his/her share of the capital. The bonus is shared by the remaining partners in the profit-sharing ratio.According to the question, the profit and loss sharing ratio of the partners is 4:3:2:1.
Therefore, the amount that will be paid to Pineda will be equal to his share of the capital plus a bonus. The bonus will be calculated as the excess amount paid over his share of the capital. Therefore, the bonus can be calculated as:Bonus = Amount paid to Pineda - Pineda's share of the capital= $355,000 - $xSince the remaining partners share profits and losses in the ratio of 3:2:1, they will share the bonus in the same ratio.
Partner Initial Capital Balance Bonus Received Payment on Retirement New Capital BalancePineda $x 0 $355,000 $x - $355,000 = -$355,000 (Pineda has a negative balance)Adams (3/7) × $x (1/2) × Bonus 0 (3/7) × $x + (1/2) × BonusFergie (2/7) × $x (1/3) × Bonus 0 (2/7) × $x + (1/3) × BonusGomez (1/7) × $x (1/6) × Bonus 0 (1/7) × $x + (1/6) × Bonus
Note that Pineda has a negative balance because he received an amount higher than his share of the capital. Therefore, the other partners will have to make a contribution to make up for the deficit.
The contribution required from each partner can be calculated as:Partner Initial Capital Balance Contribution Required New Capital BalancePineda $x (6/7)x - $355,000 $x + (6/7)x - $355,000Adams (3/7) × $x (6/7)x - $355,000 (3/7) × $x + (6/7)x - $355,000Fergie (2/7) × $x (6/7)x - $355,000 (2/7) × $x + (6/7)x - $355,000Gomez (1/7) × $x (6/7)x - $355,000 (1/7) × $x + (6/7)x - $355,000Thus, the new capital balance of each partner can be calculated using the Bonus Method.
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ABC Company’s budgeted sales for June, July, and August are 14,000, 18,000, and 16,000 units, respectively. ABC requires 25% of the next month’s budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods inventory for May is 3,500 units.
Required:
Calculate the number of units to be produced in June and July.
June July
Number of Units
The number of units to be produced in June is 15,000 units, and in July is 7,000 units.
June: To calculate the number of units to be produced in June, we need to consider the budgeted sales, desired ending finished goods inventory, and beginning finished goods inventory.
Desired ending finished goods inventory for June = 25% of July's budgeted sales = 25/100 * 18,000 = 4,500 units
Budgeted production for June = Budgeted sales + Desired ending finished goods inventory - Beginning finished goods inventory = 14,000 + 4,500 - 3,500 = 15,000 units
July: To calculate the number of units to be produced in July, we follow the same process.
Desired ending finished goods inventory for July = 25% of August's budgeted sales = 25/100 * 16,000 = 4,000 units
Budgeted production for July = Budgeted sales + Desired ending finished goods inventory - Beginning finished goods inventory = 18,000 + 4,000 - 15,000 = 7,000 units
Therefore, the number of units to be produced in June is 15,000 units, and in July is 7,000 units.
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