Case Study: Unrest and canned products recall cost KOO
owner Tiger Brands over R700 million
(20 marks)
QUESTION 2 Using relevant examples, critically discuss the pros and cons of managing risks among organisations. [20 Marks]

Industrial Industries' investment in net working capital this year was $67,000.

Net working capital is calculated by subtracting current liabilities from current assets. To determine the firm's investment in net working capital this year, we need to calculate the difference between current assets and current liabilities from the previous year to the current year.

Last year, the current assets were $445,000, and the current liabilities were $387,000. Therefore, the net working capital for that year was $445,000 - $387,000 = $58,000.

This year, the current assets increased to $472,000, and the current liabilities increased to $405,000. The net working capital for this year is $472,000 - $405,000 = $67,000.

Hence, the firm's investment in net working capital this year was $67,000.

Learn more about Capital here ; brainly.com/question/29946431

#SPJ11

Renee Robinson, the senior vice president of marketing, documents her processes and can articulate easily what she does to others on her team so that the work will continue while she is on vacation. She is usingin this situation explicit knowledge. the correct answer in this situation would be d. explicit knowledge.

Renee Robinson's ability to document her processes and articulate them easily to her team members indicates that she possesses explicit knowledge. Explicit knowledge refers to knowledge that can be codified, articulated, and shared with others through formal documentation, manuals, guidelines, or training materials.

By documenting her processes, Renee ensures that the knowledge and steps required for her work are explicitly captured and can be accessed by others on her team. This allows for the continuity of work and enables her team members to carry out the tasks effectively even when she is on vacation.

Implicit learning (a) refers to learning that occurs unconsciously or through observation without explicit instruction. Formal training (b) involves structured educational programs or courses. On the job knowledge (c) is acquired through hands-on experience and learning while performing tasks. Tacit knowledge (e) refers to personal insights, intuitions, or know-how that is difficult to articulate or codify.

In this scenario, Renee's ability to document and articulate her processes aligns with explicit knowledge, as she is explicitly sharing her knowledge and ensuring that it can be easily understood and applied by others.

To learn more about, marketing, click here, https://brainly.com/question/32094123

#SPJ11

True. The analyst should ensure that the valuation model aligns with the purpose of the valuation and the specific characteristics of the company being valued.

It is true that the analyst should ensure that the valuation model used is consistent with the purpose of the valuation and the unique characteristics of the company being valued. Different valuation models are employed depending on the purpose of the valuation, such as determining the fair value for financial reporting, estimating the intrinsic value for investment decisions, or assessing the market value for a potential sale. Each purpose requires a different approach and set of assumptions.

Furthermore, the characteristics of the company being valued also play a significant role in selecting the appropriate valuation model. Factors like industry dynamics, growth prospects, profitability, cash flow patterns, and risk profile can vary across companies. For instance, a mature company with stable cash flows may be better suited for a discounted cash flow (DCF) analysis, while a high-growth technology startup might require a relative valuation approach based on industry multiples.

By ensuring that the valuation model is consistent with the purpose of the valuation and the specific characteristics of the company, the analyst can generate more accurate and reliable estimates. Failing to align the model with these factors can lead to inaccurate valuations and misinformed decision-making. Therefore, it is essential for analysts to carefully consider the purpose and unique aspects of the company when selecting and applying a valuation model.

Learn more about company here:

https://brainly.com/question/26775900

#SPJ11

A. the expected payoff is $500,000. B. they would be willing to pay $500,000 for the full insurance. C.person would be willing to pay an amount higher than $500,000 for the insurance

a. To calculate the expected payoff, we multiply the value of each outcome by its probability and sum them up. In this case, we have two possible outcomes: fire happening (probability of 0.01) and fire not happening (probability of 0.99).

Expected payoff = (Value of outcome 1 * Probability of outcome 1) + (Value of outcome 2 * Probability of outcome 2)

              = ($0 * 0.01) + ($500,000 * 0.99)

              = $5,000 + $495,000

              = $500,000

Therefore, the expected payoff is $500,000.

b. As a risk-neutral person with a utility function U(W) = W, the individual is only concerned about the monetary outcome and does not consider profit risk or preferences. In this case, they would be willing to pay the amount that guarantees the same expected monetary value as the expected payoff. Thus, they would be willing to pay $500,000 for the full insurance.

c. A risk-averse person, who is more concerned about the potential loss and has a diminishing marginal utility for wealth, would be willing to pay more than the risk-neutral person. The risk-averse person would be willing to pay an amount higher than $500,000 for the insurance coverage to mitigate the potential loss and reduce their overall risk exposure. The exact amount would depend on the individual's risk aversion level and their utility function.

learn more about profit here: brainly.com/question/29662354

#SPJ11

One of the current methods of increasing the octane number of gasoline is through the use of octane-boosting additives. These additives, such as ethanol or MTBE (methyl tertiary-butyl ether), are blended with gasoline to improve its anti-knock properties.

Another method involves the refining process itself, specifically the use of catalytic reforming. Catalytic reforming is a process where high-octane hydrocarbons are produced by subjecting low-octane petroleum fractions to heat and pressure in the presence of a catalyst. This helps to break down and rearrange the hydrocarbon molecules, resulting in a higher-octane gasoline product.

The impacts of these methods vary. The use of octane-boosting additives can improve fuel efficiency and reduce engine knocking, leading to smoother engine performance. However, the production and blending of these additives may have environmental impacts, such as increased greenhouse gas emissions or contamination of groundwater in the case of MTBE.

Catalytic reforming, on the other hand, allows for the production of high-octane gasoline without the need for additives. This can result in cleaner-burning fuels and reduced emissions. However, the refining process itself requires energy and resources, contributing to the overall environmental footprint of gasoline production.

To learn more about gasoline, Click here: brainly.com/question/33677113

#SPJ11

All of the following are political, governmental, and legal variables that can represent key opportunities or threats to organizations except: C) level of defense expenditures.

The level of defense expenditures is primarily related to government spending and defense policies, rather than political, governmental, and legal variables that can represent opportunities or threats to organizations. While defense expenditures can have indirect impacts on certain industries or sectors, they are not typically considered as direct political, governmental, or legal variables that organizations need to navigate.On the other hand, the options A, B, D, and E all represent key political, governmental, and legal variables that can present opportunities or threats to organizations:
A) Tariffs: Tariffs are government-imposed taxes on imported goods, which can directly affect international trade and impact the competitiveness and profitability of organizations engaged in importing or exporting.
B) Environmental regulations: Environmental regulations are laws and policies implemented by governments to protect the environment and promote sustainable practices. They can impose compliance costs and requirements on organizations, but they can also create opportunities for businesses that can adapt and innovate in line with environmental concerns.
D) Legislation on equal employment: Legislation on equal employment refers to laws and regulations that promote equal opportunities, non-discrimination, and fair treatment in employment. Compliance with such legislation is crucial for organizations to ensure ethical practices and avoid legal consequences.
E) Population changes by race, age, sex, and level of affluence: Changes in population demographics can significantly impact consumer preferences, market demand, and workforce composition. Organizations need to consider these changes to effectively target their products or services, adapt their marketing strategies, and ensure inclusivity in their operations.
Therefore, option C, the level of defense expenditures, does not represent a political, governmental, or legal variable that can directly present opportunities or threats to organizations.

To know more about Tariffs, click here https://brainly.com/question/32145211

#SPJ11

Your friend will pay you $665.04 each month. At the end of 72 months, you will have approximately $44,471 in your account. Your effective annual return (EAR) is approximately 1.01%.

a. Your friend will pay you $665.04 each month.

To calculate the monthly payment, we can use the formula for the monthly payment on an amortizing loan. The formula is:

Monthly Payment = P * (r * (1 + r)^n) / ((1 + r)^n - 1)

Where P is the principal amount, r is the monthly interest rate, and n is the number of payments.

Given that the principal amount is $42,000, the APR is 7.80%, and the number of payments is 72, we need to convert the APR to a monthly interest rate. The monthly interest rate is calculated as (1 + APR)^(1/12) - 1.

Plugging in the values, the monthly payment is $665.04.

b. At the end of 72 months, you will have approximately $44,471 in your account.

To calculate the amount in your account at the end of 72 months, we need to consider the monthly payments received and the interest earned on those payments. Each monthly payment of $665.04 can be reinvested at an APR of 1.00%, calculated monthly.

Using the formula for the future value of an ordinary annuity, the amount in your account at the end of 72 months is:

Future Value = Payment * ((1 + r)^n - 1) / r

Where the payment is $665.04, the monthly interest rate is 1.00%, and the number of payments is 72.

Calculating the future value, you will have approximately $44,471 in your account at the end of 72 months.

c. Your effective annual return (EAR) is approximately 1.01%.

To calculate the effective annual return, we need to convert the monthly interest rate to an annual rate using the formula:

EAR = (1 + r)^12 - 1

Where r is the monthly interest rate.

The monthly interest rate is 1.00%. Plugging in the values, the effective annual return is approximately 1.01%.

Therefore, your effective annual return is approximately 1.01%.

To learn more about annual return, Click here: brainly.com/question/32969963

#SPJ11

In conclusion, while price can create an upper hand for online newspapers by offering cost advantages and wider accessibility, other factors like content variety, targeted advertising, and real-time engagement also contribute to their success.

Price can play a significant role in creating an upper hand for online newspapers, although it is not the only factor.

Here is a step-by-step explanation:

1. Cost advantage: Online newspapers often have lower overhead costs compared to print newspapers.

This can enable them to offer their content at a lower price or even for free, attracting more readers.

2. Accessibility: The internet allows online newspapers to reach a global audience without geographical limitations.

This wide accessibility can lead to increased readership and potential revenue streams, such as advertising and subscriptions.

3. pricing: Online newspapers can utilize competitive pricing strategies to gain an upper hand.

For instance, they may offer discounted subscriptions or bundle digital content with other services to attract and retain customers.

4. Content variety and customization: Online newspapers have the advantage of offering a wide range of content formats, including videos, interactive elements, and multimedia presentations.

This flexibility can attract readers looking for diverse and engaging content.

5. Targeted advertising: Online newspapers can collect user data and provide targeted advertising opportunities to advertisers.

This personalized approach can result in higher advertising revenue compared to traditional print newspapers.

6. Instant updates and real-time engagement: Online newspapers can quickly update their content and engage with readers through comments, social media, and interactive features.

This real-time engagement can enhance reader satisfaction and loyalty.

Iearn more about: newspapers

https://brainly.com/question/28171687

#SPJ 11

Canliss Mining Company borrowed money from a local bank. The note they signed requires five annual installment payments of $12,500 beginning one year from today. The interest rate on the note is 9%.

To find out the amount Canliss borrowed, we can use the Present Value of an Annuity (PVA) formula. PVA calculates the present value of a series of equal payments. We know that the annual payment is $12,500, and the interest rate is 9%. We also know that there are five payments.

Using the PVA formula: PVA = Payment × (1 - (1 + Interest Rate)^(-Number of Payments))) / Interest Rate
Substituting the given values, we get: PVA = $12,500 × (1 - (1 + 0.09)^(-5))) / 0.09
Simplifying this, we find that Canliss borrowed approximately $50,989.69.

To know more about installment visit:-

https://brainly.com/question/16971288

#SPJ11

To calculate the stock price, we can use the dividend discount model (DDM) to find the present value of the expected future dividends. The formula for the DDM is as follows:

Stock Price = (D₁ / (1 + r)) + (D₂ / (1 + r)²) + ... + (Dₙ / (1 + r)ⁿ)Where:D₁, D₂, ..., Dₙ = Dividends expected to be received in each yearr = Required rate of return (investors' rate of return)
Given the dividends per share for the next four years as $5.60, $9.70, $12.55, and $14.30, respectively, and a required rate of return of 10.6% (0.106 as a decimal), we can calculate the stock price:Stock Price = (5.60 / (1 + 0.106)) + (9.70 / (1 + 0.106)²) + (12.55 / (1 + 0.106)³) + (14.30 / (1 + 0.106)⁴)Evaluating this expression will give us the stock price. Calculating it, we find:Stock Price ≈ $33.64Therefore, the stock price is approximately $33.64. Hence, the correct option is c. $33.64.

learn more about expected here :

https://brainly.com/question/32070503

#SPJ11

The division's capital turnover is approximately 4.29.To calculate the division's capital turnover, we need to divide the division's sales by its total investment. (option a)

In this case, the sales are given as $15,000 (in thousands) and the total investment is given as $3,500,000 (in thousands).

Capital turnover = Sales / Total investment

Capital turnover = $15,000 / $3,500,000

Calculating this, we get:

Capital turnover = 0.0042857

Now, to convert this to a more manageable format, we can round the answer to two decimal places:

Capital turnover ≈ 0.0043(in thousands)

Capital turnover=0.00429 x 1000=4.29
In summary, the division's capital turnover is approximately 4.29.

To know more about sales visit:

https://brainly.com/question/29436143

#SPJ11

The basis of the truck to Tamtam for determining depreciation is its Fair Market Value (FMV) at the time of transfer, which is $10,000. This means that the initial cost of the truck, $14,000, is not relevant for depreciation purposes.

To determine Tamtam's realized gain or loss when the truck is sold for $11,000 after claiming depreciation of $8,000, we need to calculate the adjusted basis. The adjusted basis is the original FMV minus the depreciation claimed, which in this case is $10,000 - $8,000 = $2,000.

Therefore, Tamtam's realized gain or loss is the selling price ($11,000) minus the adjusted basis ($2,000), resulting in a realized gain of $9,000. In summary, a. The basis of the truck for depreciation is $10,000, and b. Tamtam's realized gain is $9,000.

To know more about depreciation visit:-

https://brainly.com/question/32809004

#SPJ11

The change in the quantity of subscriptions demanded is -17.5%. It is a negative change. The negative sign indicates that the change is negative, meaning that as the price increases, the quantity demanded decreases.

The price elasticity of demand measures how sensitive the quantity demanded is to changes in price. In this case, the price elasticity of demand for cable TV service is -3.5.

To calculate the response by consumers to a 5 percent increase in price, we can use the formula:

% change in quantity demanded = price elasticity x % change in price

Substituting the given values, we have:

% change in quantity demanded = -3.5 x 5% = -17.5%

This means that for a 5 percent increase in price, we can expect the quantity of cable TV subscriptions demanded to decrease by 17.5 percent.

The negative sign indicates that the change is negative, meaning that as the price increases, the quantity demanded decreases. This is because cable TV service is relatively elastic, meaning that changes in price have a significant impact on consumer demand.

Therefore, we can expect a decrease in the number of subscriptions demanded by 17.5 percent due to the 5 percent increase in price.

Learn more about subscriptions demanded from the given link

https://brainly.com/question/1139186

#SPJ11

6. To create an organization with a high degree of relational coordination, there are several things that a manager can do. Firstly, it is important to establish clear communication channels within the organization. This can be achieved through the implementation of regular meetings and communication tools, such as messaging platforms and email.

Additionally, managers can encourage collaboration and teamwork amongst employees by implementing team-based structures and cross-functional teams. This can help to break down silos within the organization and promote a shared understanding of goals and objectives.

It is also important for managers to develop a culture of trust within the organization. This can be achieved by promoting transparency, accountability, and open communication. By building a culture of trust, employees are more likely to work collaboratively and effectively with one another, which can ultimately lead to a higher degree of relational coordination within the organization.

9. Companies that use a horizontal structure tend to have cultures that emphasize openness, employee empowerment, and responsibility. This is because a horizontal structure typically involves a flatter hierarchy and less centralized decision-making. As a result, employees are often given more autonomy and responsibility, which can lead to greater job satisfaction and motivation.

In a horizontally organized company, a manager's job would be quite different from that in a traditional hierarchical organization. Instead of being responsible for making all the decisions, managers in a horizontal structure are often responsible for facilitating communication and collaboration amongst employees. They may also be responsible for coaching and mentoring employees, as well as developing and implementing policies and procedures that promote teamwork and collaboration. Overall, a manager's job in a horizontally organized company would be focused on fostering a culture of collaboration and empowerment amongst employees.

To Learn more about accountability. Click this!

brainly.com/question/14893469

#SPJ11

BRAC Bank adopts a technology-driven approach to understand and address consumer behavior. It recognizes the significance of technology in shaping consumer behavior and the need to leverage it effectively to meet the evolving needs of customers.

The bank understands that technology plays a crucial role in enhancing convenience, accessibility, and efficiency in the banking industry. By adopting a technology-driven approach, BRAC Bank aims to stay ahead of the curve and provide innovative solutions to cater to the changing preferences and behaviors of consumers. To effectively address technology-driven consumer behavior, BRAC Bank emphasizes the development and implementation of digital solutions. The bank invests in cutting-edge technologies and digital platforms to offer a seamless and user-friendly banking experience. This includes mobile banking applications, internet banking services, and digital payment solutions that allow customers to perform banking transactions conveniently from their preferred devices. BRAC Bank also focuses on enhancing cybersecurity measures to ensure the safety and privacy of customer data in the digital realm. Moreover, BRAC Bank recognizes the importance of data analytics in understanding consumer behavior and tailoring its services accordingly. The bank collects and analyzes customer data to gain insights into their preferences, habits, and needs. This helps BRAC Bank identify trends, personalize its offerings, and provide targeted marketing campaigns. By leveraging data-driven insights, the bank can better understand consumer behavior and make informed decisions regarding product development, marketing strategies, and customer engagement. Furthermore, BRAC Bank emphasizes customer-centricity in its technology-driven approach. The bank believes in providing customized solutions that align with the preferences and behaviors of its diverse customer base. Through digital channels, BRAC Bank offers personalized recommendations, tailored promotions, and real-time assistance to enhance the overall customer experience. The bank also actively seeks customer feedback and conducts surveys to gather insights into their satisfaction levels and preferences, allowing them to continuously improve their services and adapt to evolving consumer behavior. In summary, BRAC Bank adopts a technology-driven approach to effectively address consumer behavior. By leveraging digital solutions, data analytics, and a customer-centric focus, the bank aims to provide innovative, personalized, and convenient banking experiences that align with the evolving needs and expectations of its customers. Through its commitment to technology-driven consumer behavior, BRAC Bank strives to stay at the forefront of the banking industry and deliver value-added services to its customers.

To learn more about BRAC bank, click here:

https://brainly.com/question/13780225

#SPJ11

The correct answer for the first question is 3) Safety Audit. A safety audit is a systematic evaluation of an organization's safety performance, practices, and procedures. It involves a comprehensive review of safety policies, protocols, and compliance with regulatory standards. The purpose of a safety audit is to identify potential hazards, assess the effectiveness of safety measures, and recommend improvements to prevent accidents.

The correct answer for the second question is 2) Understand why accidents happen. Analysis plays a crucial role in understanding the root causes and contributing factors of accidents. By analyzing accidents, safety professionals can identify patterns, trends, and underlying issues that lead to accidents. This understanding helps in developing effective preventive measures and improving safety practices to minimize the occurrence of accidents in the future.

While gathering information (option 1) is a part of the analysis process, the main purpose of analysis is to go beyond data collection and delve deeper into understanding the causes and implications of accidents. Additionally, helping managers select a course of action (option 3) and preventing accidents (option 4) are important outcomes of the analysis process, but they are not the primary purpose of analysis itself.

To learn more about policies

https://brainly.com/question/1658845

#SPJ11

To determine the budgeted sales for September, we need to calculate the ending inventory for August, taking into account the 10% requirement for the following month's sales.

Here's the step-by-step calculation: Starting with the given information: July sales: 49,000 unitsAugust sales: 61,000 unitsJuly production: 49,300 unitsAugust production: 61,300 unitsStarting inventory (July 1): 5,800 unitsCalculating the ending inventory for July:Ending inventory = Starting inventory + Production - SalesEnding inventory = 5,800 + 49,300 - 49,000 = 6,100 units Calculating the required inventory for August sales (10% of August sales):Required inventory = August sales * 10%Required inventory = 61,000 * 0.1 = 6,100 units Calculating the ending inventory for August Ending inventory = Required inventory for September (10% of August sales) + August production - August salesEnding inventory = 6,100 + 61,300 - 61,000 = 6,400 units Calculating the required inventory for September sales (10% of September sales): Required inventory = September sales * 10%

Learn more about budgeted here:

https://brainly.com/question/31952035

#SPJ11

a. Upstream costs: Upstream costs are incurred before production begins. This includes research and development. Rooney Manufacturing incurred 8,000,000 of research and development (R&D) costs.

Downstream costs: Downstream costs are incurred after the production of goods. This includes packaging, shipping, and sales commissions. Packaging, shipping, and sales commissions are expected to be 8 per unit.

Calculation of cost of goods sold and ending inventory. The cost of goods sold for Year 1 will include the cost of manufacturing and downstream costs. Manufacturing costs (direct materials, direct labor, and overhead) are expected to be 45 per unit.

To know more about development visit:

https://brainly.com/question/13132170

#SPJ11

The implication of the compounding of economic growth rates is that a 10% annual rate of return will double an investment in less than 6 years.

The compounding of economic growth rates refers to the phenomenon where growth builds upon itself over time. When growth rates compound, the growth rate is applied to the expanded base, resulting in an accelerating rate of increase.

In the case of a 10% annual rate of return on an investment, compounding allows the investment to grow exponentially. By applying a 10% growth rate to the initial investment, the value increases by 10% each year. However, as the investment grows, the 10% growth rate is applied to a larger base, leading to a greater absolute increase in value each year.

To determine the time it takes for an investment to double, we can use the rule of 72. The rule of 72 states that by dividing 72 by the growth rate, we can estimate the number of years it takes for an investment to double. In this case, 72 divided by 10 gives us approximately 7.2 years.

Therefore, it is implied that a 10% annual rate of return will double an investment in less than 6 years, considering the compounding effect. The compounding nature of growth accelerates the rate at which the investment grows, allowing it to double in less time compared to a simple linear growth calculation.

Learn more about compounding effect.

brainly.com/question/30237367

#SPJ11

Some popular online grocery applications in the Philippines that offer 24/7 service include MetroMart, HappyFresh, and Pushkart.ph.

MetroMart is a well-known online grocery platform in the Philippines that offers a wide range of products from various supermarkets and specialty stores. They provide 24/7 service, allowing customers to order groceries anytime and have them delivered to their doorstep. MetroMart offers a user-friendly interface, multiple payment options, and efficient delivery service.

HappyFresh is another online grocery application that operates in the Philippines. They partner with various supermarkets and stores to offer a convenient shopping experience. With their 24/7 service, customers can browse through a wide selection of groceries, household items, and fresh produce. HappyFresh focuses on delivering high-quality products and ensuring customer satisfaction.

Pushkart.ph is a local online grocery platform that caters to customers in the Philippines. They offer a vast range of groceries, including fresh produce, pantry staples, and household essentials. Pushkart.ph provides a 24/7 service, allowing customers to place orders at their convenience. They strive to offer competitive prices and reliable delivery to enhance the overall shopping experience.

In conclusion, MetroMart, HappyFresh, and Pushkart.ph are popular online grocery applications in the Philippines that provide 24/7 service. These platforms offer a wide selection of products, convenient ordering processes, and reliable delivery, making grocery shopping more accessible and convenient for customers.

Learn more about Philippines

brainly.com/question/25997902

#SPJ11

The cost of goods completed and transferred out is $415,030.

The cost of goods completed and transferred out can be calculated using the formula below:

Cost of goods completed and transferred out = (Number of units completed and transferred out × cost per equivalent unit) + (Number of units in ending inventory × cost per equivalent unit)

Where, Number of units completed and transferred out = 49,000

Number of units in ending inventory = 4,900

Cost per equivalent unit for direct material = $3.80

Cost per equivalent unit for conversion = $3.90

Now, substituting the values in the above formula we get, Cost of goods completed and transferred out = (49,000 × ($3.80 + $3.90)) + (4,900 × ($3.80 + $3.90))

Cost of goods completed and transferred out = (49,000 × $7.70) + (4,900 × $7.70)

Cost of goods completed and transferred out = $377,300 + $37,730

Cost of goods completed and transferred out = $415,030

Therefore, the cost of goods completed and transferred out is $415,030.

The cost of goods completed and transferred out is an essential aspect of accounting. It is the total cost of goods manufactured during the period, which includes all direct material costs, direct labour costs, and manufacturing overhead costs incurred during that period. The cost of goods completed and transferred out reflects the amount of inventory manufactured during the period that was transferred out to the company's inventory and sold to customers. In contrast, ending inventory reflects the amount of inventory manufactured during the period that was not sold but kept in the inventory for future sales.

The cost of goods completed and transferred out formula is (Number of units completed and transferred out × cost per equivalent unit) + (Number of units in ending inventory × cost per equivalent unit). In this case, the cost of goods completed and transferred out is $415,030, considering that 49,000 units are completed and transferred out and 4,900 units are in the ending inventory. Therefore, the total cost of goods manufactured is $415,030, and it includes all direct material costs, direct labour costs, and manufacturing overhead costs.

The cost of goods completed and transferred out is an essential aspect of accounting that reflects the amount of inventory manufactured during the period that was transferred out to the company's inventory and sold to customers. In this case, the cost of goods completed and transferred out is $415,030.

To know more about accounting visit  

brainly.com/question/5640110

#SPJ11

While U.S. Treasury bonds are considered relatively low-risk, they are not entirely risk-free. Factors such as default risk, interest rate risk, and inflation risk should be considered by investors.

The statement that a U.S. Treasury bond is completely risk-free is not entirely accurate. While U.S. Treasury bonds are considered to be relatively low-risk investments, they are not entirely without risk. Here are a few factors to consider:

1. Default Risk: The U.S. Treasury is backed by the full faith and credit of the U.S. government, which is considered one of the safest borrowers in the world. However, there is still a very small possibility that the U.S. government could default on its debt obligations. While this is extremely unlikely, it cannot be ruled out entirely.

2. Interest Rate Risk: Treasury bonds are sensitive to changes in interest rates. If interest rates rise after an investor purchases a Treasury bond, the market value of the bond may decline. This can result in a capital loss if the investor decides to sell the bond before maturity.

3. Inflation Risk: Treasury bonds are fixed-income securities, which means their interest payments remain constant over the life of the bond. If inflation rises significantly, the purchasing power of the bond's interest payments can be eroded, leading to a decrease in the real return for investors.

Despite these risks, U.S. Treasury bonds are still considered to be one of the safest investment options available, and their credit risk is generally very low. They are often used as a benchmark for measuring the risk and return of other investments. The U.S. government has a strong history of meeting its debt obligations, and Treasury bonds are highly liquid and widely traded in financial markets.

However, it's important for investors to assess their own risk tolerance and investment objectives when considering any investment, including U.S. Treasury bonds. Diversification and a balanced portfolio that includes a mix of asset classes can help mitigate risks and achieve long-term financial goals.

Learn more about U.S. Treasury bonds here:

https://brainly.com/question/31978031

#SPJ11

The net cash provided by operating activities for the year is $10,000. This is calculated by starting with the net income of $77,500 and making adjustments for changes in current assets and current liabilities. Additionally, the credit balance in the Accumulated Depreciation account of $42,000 needs to be subtracted. The final result reflects the net cash generated from the company's core operating activities.

To determine the net cash provided by operating activities using the indirect method, we need to make adjustments to the net income figure provided.

First, let's calculate the changes in the current asset and current liability accounts:

- Cash and cash equivalents: The beginning balance was $83,000 and the ending balance was $55,000. Therefore, there was a decrease of $28,000.
- Accounts receivable: The beginning balance was $198,000 and the ending balance was $168,000. Therefore, there was a decrease of $30,000.
- Inventory: The beginning balance was $367,000 and the ending balance was $442,000. Therefore, there was an increase of $75,000.
- Prepaid expenses: The beginning balance was $13,500 and the ending balance was $12,000. Therefore, there was a decrease of $1,500.
- Accounts payable: The beginning balance was $390,000 and the ending balance was $352,000. Therefore, there was a decrease of $38,000.
- Accrued liabilities: The beginning balance was $11,500 and the ending balance was $8,500. Therefore, there was a decrease of $3,000.
- Income taxes payable: The beginning balance was $27,000 and the ending balance was $32,000. Therefore, there was an increase of $5,000.

Next, we need to consider the adjustments for non-cash items:

- Accumulated Depreciation: The total credits during the year were $42,000. Since this is a credit, we need to subtract it from the net income.

Now, let's calculate the net cash provided by operating activities:

Net Income: $77,500
Adjustments:
- Decrease in cash and cash equivalents: $28,000
- Decrease in accounts receivable: $30,000
+ Increase in inventory: $75,000
- Decrease in prepaid expenses: $1,500
- Decrease in accounts payable: $38,000
- Decrease in accrued liabilities: $3,000
+ Increase in income taxes payable: $5,000
- Accumulated Depreciation: $42,000 (credit)

Net Cash Provided by Operating Activities: $77,500 - $28,000 - $30,000 + $75,000 - $1,500 - $38,000 - $3,000 + $5,000 - $42,000 = $10,000

Therefore, the net cash provided by operating activities for the year using the indirect method is $10,000.

For more such questions on net income, click on:

https://brainly.com/question/28390284

#SPJ11

The absorption costing net operating income for each year can be calculated as follows.Year Variable costing net operating income $290,000 $269,000 $250,000Add fixed manufacturing .

Inventories decreased during Year as the absorption costing net operating income is greater than the variable costing net operating income.

This implies that there is a decrease in ending inventories in Year.The calculation of the amount of fixed manufacturing overhead cost that was deferred or released from inventory.

To know more about calculated visit:

https://brainly.com/question/30781060

#SPJ11

The market value of the property is the value that it would sell for in a free and open market. The fact that the appraiser returned an estimate of value of $200,000 means that this is the market value of the property, since the appraisal was conducted in a free and open market.

Market value refers to the worth of a property in a free and open market. A free and open market is a marketplace where the buyer and seller have no undue influence on the market, where buyers and sellers are well informed, and the property is marketed for a reasonable amount of time.  

The market value is an objective measurement, it is not influenced by the buyers or the sellers. Here, Lynne bought a house for $187,500, although it was listed for $195,000.

Ken offered Lynne $190,000 for the property, but his offer was rejected, and Lynne then hired an appraiser. The appraiser returned an estimate of value of $200,000. From these numbers, it's apparent that the market value of the property is $200,000.

The property was listed for $195,000, which means it was marketed for a reasonable amount of time. Lynne bought the property for $187,500, but the appraiser returned an estimate of value of $200,000.

Lynne then received an offer of $190,000 from Ken, but it was rejected because the appraiser had indicated that the market value of the property was $200,000.

for more such questions on  market.

https://brainly.com/question/25369230

#SPJ8

In the audit of sales, accounts receivable, and cash receipts for JA Tire Manufacturing, the specific audit objectives that each of the following audit procedures satisfies are as follows:

a. For a sample of customer accounts receivable balances at December 31, 2019, examine subsequent cash receipts in January 2020 to determine whether the customer paid the balance due.
- This procedure satisfies Audit Objective 4: To determine whether customer balances are collected and recorded accurately.

b. Determine whether risks related to accounts receivable are clearly and adequately disclosed.
- This procedure satisfies Audit Objective 8: To determine whether all significant risks related to accounts receivable are appropriately disclosed in the financial statements.

c. Use EXCEL to total sales in the sales journal for the month of July and trace postings to the general ledger.
- This procedure satisfies Audit Objective 3: To determine whether sales transactions are accurately recorded and summarized in the financial statements.

d. Send letters to a sample of accounts receivable customers to verify whether they have an outstanding balance at December 31, 2019.
- This procedure satisfies Audit Objective 5: To determine whether accounts receivable balances are accurately stated and valid.

e. Determine whether long-term receivables and related party receivables are reported separately in the financial statements.
- This procedure satisfies Audit Objective 9: To determine whether long-term receivables and related party receivables are appropriately classified and disclosed in the financial statements.

To know more about cash receipts visit:

brainly.com/question/34349901

#SPJ11

An exchange rate is the value at which one currency can be exchanged for another currency. It represents the rate of conversion between two currencies and is determined by various factors such as supply and demand dynamics, interest rates, inflation, political stability, and market sentiment.

Exchange rates can be either fixed, where the value is set by the government, or floating, where it is determined by the market forces.Forex Reserves:Foreign exchange reserves, often referred to as forex reserves or international reserves, are the foreign currency assets held by a country's central bank or monetary authority. These reserves are typically composed of foreign currencies, such as the US dollar, euro, yen, and others, as well as gold and other internationally accepted assets. Forex reserves serve as a cushion and are used to stabilize a nation's currency in times of economic uncertainties, external shocks, or during balance of payments imbalances.Objectives of Forex Reserves:Currency Stabilization: Forex reserves are used to maintain stability in the exchange rate by intervening in the foreign exchange market when necessary. Central banks buy or sell foreign currencies to influence the value of their domestic currency and prevent excessive fluctuations.International Payments: Reserves are used to facilitate international transactions, such as imports, debt repayments, and settlements between countries. Sufficient reserves ensure a country's ability to meet its external obligations without facing liquidity constraints.Crisis Management: Forex reserves act as a defense mechanism during financial crises or speculative attacks on the currency. They provide a level of confidence to investors and lenders that the country has the necessary resources to manage any potential economic shocks.
learn more about represents here:
https://brainly.com/question/31291728
#SPJ11

Isocosts closer to the origin indicate lower total costs for a given input prices.

Isocosts closer to the origin are associated with lower total costs. In economics, an isocost line represents different combinations of inputs that a firm can purchase while maintaining a constant cost. The slope of an isocost line indicates the ratio at which the two inputs can be substituted while keeping the cost constant. When isocosts are closer to the origin, it means that the firm is spending less on inputs, resulting in lower total costs.

This could be due to factors such as lower input prices or more efficient resource allocation. Firms can achieve cost savings by optimizing their input usage, finding cheaper input alternatives, or adopting production techniques that require fewer resources. By operating on isocosts closer to the origin, firms can enhance their competitiveness and potentially increase profitability.

Learn more about costs

brainly.com/question/17120857

#SPJ11

The NPV of the project considering the flotation cost is positive, indicating that the project is financially viable. The cost of debt is generally cheaper than the cost of equity due to several factors.

i) To determine the NPV of the project, we need to calculate the cost of financing and the cash flows generated by the project. The company's desired D/E ratio is 2 times, meaning that for every RM1 of equity financing, RM2 of debt financing will be used. The cost of equity is given as 11 percent, while the pre-tax cost of debt is 8 percent, and the tax bracket is 30 percent.

To incorporate the flotation costs, we need to consider the costs of issuing shares and underwriting bonds. The share issuance cost is 5 percent, and the bond underwriting cost is 3.5 percent. These costs will be subtracted from the total financing amount.

The after-tax cash inflows from the project are RM25 million annually. We can calculate the net cash flow by subtracting the annual interest expense from the cash inflows. The interest expense is calculated as the debt financing multiplied by the pre-tax cost of debt, adjusted for the tax advantage of debt.

Using the net cash flows and the cost of financing, we can calculate the NPV of the project using the discounted cash flow (DCF) method. If the NPV is positive, it indicates that the project is financially viable.

ii) The cost of debt is generally cheaper than the cost of equity due to several reasons. Firstly, interest payments on debt are tax-deductible, which provides a tax advantage. This means that the after-tax cost of debt is lower compared to the cost of equity. On the other hand, dividends paid to equity shareholders are not tax-deductible.

Secondly, debt financing is considered less risky than equity financing. Debt holders have a higher priority claim on the company's assets and cash flows compared to equity holders. In case of bankruptcy or liquidation, debt holders are paid before equity holders, which reduces the risk associated with lending money to the company. Lower risk results in lower required returns and thus a lower cost of debt.

Furthermore, equity investors expect a higher return on their investment to compensate for the greater risk they bear compared to debt holders. Equity investments are subject to market volatility, business risk, and uncertainties, which lead to a higher cost of equity.

Overall, the combination of tax advantages and lower risk associated with debt financing makes the cost of debt cheaper than the cost of equity for companies. However, it is important to strike a balance between debt and equity financing to maintain a healthy capital structure and minimize financial risks.

Learn more about equity here:

https://brainly.com/question/30655014

#SPJ11

Call; purchase; appreciate If the USD appreciates, meaning that the value of the USD increases relative to the AUD, to hedge would generally profitable outcome for Nilex Pty Ltd.

Here's the breakdown of each option:

Call option: A call option gives the holder the right, but not the obligation, to buy the underlying asset (in this case, USD) at a specific price (strike price) within a specified period of time (6 months). By purchasing a call option, Nilex Pty Ltd would be able to buy USD at the strike price if the USD appreciates beyond that level. This would provide a favorable exchange rate for Nilex Pty Ltd.

Put option: A put option gives the holder the right, but not the obligation, to sell the underlying asset (in this case, USD) at a specific price (strike price) within a specified period of time (6 months). Since Nilex Pty Ltd is concerned about the AUD/USD exchange rate, purchasing a put option would not be an effective hedge in this situation.

Forward exchange contract: A forward exchange contract is an agreement between two parties to exchange a specified amount of currencies at a future date at an agreed-upon exchange rate. If Nilex Pty Ltd enters a forward exchange contract to purchase USD at the current forward exchange rate, it would be protected against any appreciation of the USD, which would be beneficial for the company.

Learn more about USD appreciates here

https://brainly.com/question/27987727

#SPJ11