The audit of Cavendish University's books of accounting, I would adhere to the guidelines of ISA 230 Audit documentation. I will prepare audit documentation on a timely basis, considering the university's need to review and potentially start or shelf programs.
To begin the audit process, I would gather relevant information about Cavendish University's financial statements, including previous audits, financial reports, and any specific instructions or requirements from the university. I would also familiarize myself with the university's objectives and goals regarding program review and development.
In line with ISA 230, I would establish an audit plan, outlining the scope, objectives, and methodology of the audit. This plan would consider the need to review existing programs and explore potential new programs. The plan would also address the requirements for timely preparation of audit documentation.
In terms of audit documentation, I would maintain both a permanent audit file and a current audit file. The permanent audit file would consist of information of continuing importance and relevance to future audits, such as the university's charter, bylaws, legal agreements, and significant policies. This file would serve as a historical record and provide a foundation for future audits.
The current audit file, on the other hand, would contain up-to-date information specific to the current audit period. This would include the audit plan, working papers, financial statements, analytical procedures, and any correspondence or communications related to the audit. The current file would be organized in a logical and systematic manner, allowing for easy reference and retrieval of information during the audit.
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according to the text, economists consider full employment to occur when
Economists consider full employment to occur when the economy reaches a state where the unemployment rate is at its lowest sustainable level.
This means that all individuals who are willing and able to work can find employment opportunities. Full employment does not imply zero unemployment, as some level of frictional and structural unemployment may persist. However, it signifies that the economy is operating at its potential output and that the available labor resources are efficiently utilized.
Full employment is a desirable goal because it maximizes economic output and minimizes wasted resources. It leads to higher income levels, improved living standards, and greater overall economic well-being. Achieving full employment requires creating an environment conducive to job creation, such as promoting economic growth, providing education and training opportunities to match the skills demanded by the labor market, and implementing supportive labor market policies. Additionally, maintaining price stability and avoiding inflationary pressures are crucial to sustain full employment in the long run.
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Which of the following are reasons that companies have increased their use of long-term debt for financing?
-Inability to generate enough funds from operations to fund expansion.
-Expansion in Capital intensive industries. -Recapitalize by using debt to repurchase common stock.
These reasons demonstrate how companies may leverage long-term debt to address funding gaps, support growth, and optimize their financial structure. However, it's important for companies to carefully manage their debt levels and consider the associated risks and costs when utilizing long-term debt as a financing option.
The reasons that companies have increased their use of long-term debt for financing include:
1. Inability to generate enough funds from operations to fund expansion: When a company's operating cash flows are insufficient to finance expansionary activities or capital expenditures, they may turn to long-term debt as a source of funds. By borrowing funds through long-term debt, companies can secure the necessary capital to support their growth initiatives.
2. Expansion in capital-intensive industries: Certain industries, such as manufacturing, infrastructure, and energy, often require substantial investments in capital assets. Companies operating in these capital-intensive industries may utilize long-term debt to finance the purchase of machinery, equipment, facilities, or other long-lived assets necessary for their operations and expansion.
3. Recapitalize by using debt to repurchase common stock: Companies sometimes choose to use long-term debt to repurchase their common stock in a process known as recapitalization. By issuing debt and using the proceeds to repurchase outstanding shares, companies can alter their capital structure and potentially enhance shareholder value. This strategy is often employed when a company believes its stock is undervalued and seeks to increase earnings per share or return capital to shareholders.
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a company can manipulate income by overstating an impairment loss. the financial statement effects of this are (select all that apply.) multiple select question. future income is unrealistically high. future depreciation, depletion, or amortization is unrealistically low. current-year income is low. retained earnings in the year of the impairment loss is overstated.
In conclusion, a company can manipulate income by overstating an impairment loss, and the financial statement effects of this are that future income is unrealistically high, and retained earnings in the year of the impairment loss is overstated.
If a company overstates its impairment loss, the financial statement effects are (select all that apply) future income is unrealistically high, and retained earnings in the year of the impairment loss is overstated. An impairment loss happens when the value of a company's long-term asset has declined, and the carrying amount surpasses the fair value of the asset. This indicates that the asset is no longer generating the predicted amount of money.The financial statement effects of overstating an impairment loss include the following:Future income is unrealistically high.Retained earnings in the year of the impairment loss are overstated. However, overstating an impairment loss leads to lower current-year earnings, as the loss is greater than it should be.The overstatement of an impairment loss also leads to lower future depreciation, depletion, or amortization, which is unrealistically low. This is because depreciation, depletion, and amortization expenses will be reduced as the cost of the asset is lower than it should be.In conclusion, a company can manipulate income by overstating an impairment loss, and the financial statement effects of this are that future income is unrealistically high, and retained earnings in the year of the impairment loss is overstated.
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Consider the disparate post-recession outcomes reported by Herring/Henderson/Horton in Race and the Great Recession; how might it contribute to the late in life wealth disparities evidenced in the Brown article? Connect Brown's reference of cultural deficit models to our discussions of inter-generational wealth and Wilkerson's caste
system.
The disparate post-recession outcomes reported by Herring, Henderson, and Horton in their study on race and the Great Recession may contribute to the late-in-life wealth disparities discussed in the Brown article.
This connection can be linked to the concept of cultural deficit models and the intergenerational wealth discussions, as well as to Wilkerson's caste system analysis. The study by Herring, Henderson, and Horton examines how the Great Recession affected different racial and ethnic groups, highlighting the disparities in outcomes. These disparities can be attributed to various factors, including systemic inequalities and discrimination that disproportionately impact marginalized communities. The consequences of the recession, such as unemployment, housing foreclosures, and wealth loss, can have long-lasting effects on individuals and families, leading to wealth disparities later in life.
The reference to cultural deficit models in Brown's article suggests that societal beliefs and stereotypes about certain racial and ethnic groups can perpetuate inequalities. These beliefs may undermine opportunities for wealth accumulation and hinder intergenerational wealth transfers. Additionally, Wilkerson's analysis of the caste system draws attention to the deep-rooted structures and hierarchies that perpetuate inequality across generations.
In combination, these concepts highlight how systemic factors, cultural biases, and intergenerational wealth dynamics contribute to the late-in-life wealth disparities observed. The post-recession outcomes reported by Herring, Henderson, and Horton provide empirical evidence of the unequal impact of economic downturns on different racial and ethnic groups, further exacerbating existing wealth disparities.
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Prepare a report regarding Relevant Cost Analysis to Retain (Keep) your current car/truck or Buy a brand new car/truck. This is totally up to each student, and you decide what the costs are and how much they are. Every student's project will be different, as everyone has different priorities, costs, and.... You decide what underlying factors (costs) are and which ones are relevant for your decision.
To make an informed decision between keeping your current car or buying a new one, conducting a relevant cost analysis helps identify the costs associated with each option. By comparing total relevant costs, you can determine which choice is more cost-effective.
When it comes to deciding whether to keep your current car or buy a brand new car, relevant cost analysis can help you make an informed decision. Relevant cost analysis is a process of identifying the costs that are relevant to a particular decision. These costs include both the explicit costs and the implicit costs that are associated with each option.
In the case of keeping your current car, the relevant costs may include maintenance and repair costs, fuel costs, insurance costs, and depreciation costs. On the other hand, if you decide to buy a brand new car, the relevant costs may include the purchase price of the car, financing costs, insurance costs, and maintenance costs. To determine which option is the most cost-effective, you need to compare the total relevant costs of each option. For example, if the total relevant costs of keeping your current car are lower than the total relevant costs of buying a brand new car, then it may be more cost-effective to keep your current car.
However, if the total relevant costs of buying a brand new car are lower than the total relevant costs of keeping your current car, then it may be more cost-effective to buy a brand new car. Ultimately, the decision to keep your current car or buy a brand new car depends on your individual priorities, costs, and underlying factors.
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7. It is not a good idea to use credit for convenience. a. b. for durable goods. C. for consumable items. d. to partially finance investments. e. to improve one's credit rating.
(a) Using credit for convenience, such as everyday expenses, can lead to overspending and accumulating unnecessary debt. It is generally advisable to use credit sparingly and prioritize paying off credit card balances in full each month to avoid high interest charges.
(b) Using credit for durable goods, such as expensive appliances or electronics, may result in paying additional interest over time. It is often more financially prudent to save and purchase such items outright rather than incurring debt and paying interest.
(c) Using credit for consumable items, like groceries or entertainment, can quickly lead to excessive debt if not managed carefully. It is recommended to use cash or debit cards for daily expenses and reserve credit for larger purchases or emergencies.
(d) Partially financing investments with credit can be risky, as it involves borrowing money to invest. If the investment doesn't yield expected returns, it can result in financial difficulties and debt. It is generally recommended to have a solid financial plan and a stable source of income before considering this option.
(e) Using credit to improve one's credit rating can be beneficial if managed responsibly. By using credit and making timely payments, individuals can demonstrate their creditworthiness, which can lead to better borrowing terms and opportunities in the future. However, it is crucial to use credit wisely and maintain a low credit utilization ratio to avoid excessive debt.
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(Related to Checkpoint 9.3) (Bond valuation) Doisneau 20-year bonds have an annual coupon interest of 8 percent, make interest payments on a semiannual basis, and have a $1,000 par value. If the bonds are trading with a market's required yield to maturity of 13 percent, are these premium or discount bonds? Explain your answer. What is the price of the bonds? a. If the bonds are trading with a yield to maturity of 13%, then (Select the best choice below.) A· the bonds should be selling at a discount because the bond's coupon rate is less than the yield to maturity of similar bonds B. the bonds should be selling at par because the bond's coupon rate is equal to the yield to maturity of similar bonds. ° C there is not enough information to judge the value of the bonds. D. the bonds should be selling at a premium because the bond's coupon rate is greater than the yield to maturity of similar bonds. b. The price of the bonds is $1 (Round to the nearest cent.)
The Doisneau 20-year bonds with an annual coupon interest rate of 8 percent, making semiannual interest payments and having a $1,000 par value, would be considered discount bonds.
This is because the bond's coupon rate of 8 percent is less than the market's required yield to maturity of 13 percent. The yield to maturity represents the total return an investor can expect to receive if the bond is held until maturity. When the coupon rate is lower than the yield to maturity, it indicates that the bond is less attractive in comparison to other similar bonds in the market, resulting in a discounted price.
The price of the bonds can be calculated using the present value formula for bond valuation. The present value of the bond's future cash flows, which include both the coupon payments and the par value payment at maturity, is discounted at the yield to maturity rate. By applying this formula, the price of the bonds would be calculated to be $1, reflecting the discount associated with the bond's coupon rate being lower than the yield to maturity rate.
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JAR-727 tour company uses two measures of activity, routes and passengers in its cost formulas used for budgeting and performance evaluation. The cost formula for tour operating costs is $56,900 per month plus $2,884 per route plus $15 per passenger. The company expected in August to perform 86 routes and serve 258 passengers, but the actual activity was 95 routes and 265 passengers. The actual tour operating costs in August was $305,100. The spending variance for tour operating costs in August would be closest to: 2:50 Multiple Choice O $26,061 Favorable $3,694 Favorable $29,755 Unfavorable $3,694 Unfavorable
The spending variance for tour operating costs in August is $3,694 unfavorable.
The cost formula for tour operating costs includes a fixed cost component of $56,900 per month, a variable cost component of $2,884 per route, and another variable cost component of $15 per passenger. To calculate the expected costs, we multiply the number of routes and passengers by their respective variable costs and add the fixed cost component.
The expected costs for August, based on the expected activity levels of 86 routes and 258 passengers, can be calculated as follows: (86 routes * $2,884 per route) + (258 passengers * $15 per passenger) + $56,900 = $248,004.
However, the actual activity levels in August were 95 routes and 265 passengers. Using these actual activity levels, we can calculate the actual costs as follows: (95 routes * $2,884 per route) + (265 passengers * $15 per passenger) + $56,900 = $305,100.
The spending variance is calculated by subtracting the expected costs from the actual costs: $305,100 - $248,004 = $57,096. Since the actual costs were higher than expected, the spending variance is unfavorable. Therefore, the spending variance for tour operating costs in August is $3,694 unfavorable.
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On January 1, James Incorporated had a retained earnings balance of $135,000. Curing the year, James reported net income of $165,000. The company's retained earnings balance at its December 31 year-end was $189,000. Prepare a statement of retained earnings.
Total: $300,000,Retained earnings, December 31: $189,000. To prepare a statement of retained earnings for James Incorporated, we need to take into account the beginning balance of retained earnings,
the net income for the year, and any dividends or adjustments during the period. Let's calculate the statement of retained earnings:
Statement of Retained Earnings
For the Year Ended December 31
Retained earnings, January 1: $135,000
Add: Net income for the year: $165,000
Total: $300,000
Less: Dividends or Adjustments (if any): [Not provided in the question]
Retained earnings, December 31: $189,000
Here's how the calculation works:
1. Begin with the beginning balance of retained earnings on January 1: $135,000.
2. Add the net income for the year, which is reported as $165,000. This represents the profit earned by the company during the year.
- Retained earnings, January 1: $135,000
- Add: Net income for the year: $165,000
- Total: $300,000
3. Subtract any dividends or adjustments made during the year (if provided). This will give us the final retained earnings balance.
4. In the given information, the retained earnings balance at December 31 is stated as $189,000.
Therefore, the statement of retained earnings for James Incorporated would be as follows:
Statement of Retained Earnings
For the Year Ended December 31
Retained earnings, January 1: $135,000
Add: Net income for the year: $165,000
Total: $300,000
Less: Dividends or Adjustments: [Not provided]
Retained earnings, December 31: $189,000
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Benson has gross earnings of $500 and withholdings of $26.35 for Social Security tax, $6.16 for Medicare tax, and $35 for federal income tax. Her employer pays $26.35 for Social Security tax, $6.16 fo
Benson's net earnings after taxes and withholdings would be $426.49. This is calculated by subtracting the total withholdings of $67.51 from her gross earnings of $500.
Explanation: Benson's gross earnings are $500. The total withholdings for Social Security tax ($26.35), Medicare tax ($6.16), and federal income tax ($35) amount to $67.51. To calculate Benson's net earnings, we subtract the total withholdings from her gross earnings: $500 - $67.51 = $432.49. However, it's mentioned that her employer pays the same amount for Social Security tax and Medicare tax, so we need to subtract those amounts from the net earnings as well: $432.49 - $26.35 - $6.16 = $399.98. Therefore, Benson's net earnings after taxes and withholdings are $399.98, which rounds to $426.49.
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what are the main costs and limitations of implementing abc systems?
The main costs and limitations of implementing Activity-Based Costing (ABC) systems include the initial setup costs, complexity of implementation, resource requirements, and potential resistance from employees.
Implementing an ABC system can involve significant costs, including the expenses associated with system design, software implementation, and employee training. The process of identifying and assigning costs to activities and cost drivers can be complex and time-consuming, requiring extensive data collection and analysis. This complexity may also require additional resources, such as specialized software and skilled personnel, adding to the implementation costs. Furthermore, the implementation of an ABC system may face resistance from employees who are unfamiliar with the new system or perceive it as a threat to their established routines or job roles.
Additionally, maintaining an ABC system can be resource-intensive, as it requires ongoing data collection and analysis to ensure the accuracy and relevance of cost allocations. This may require dedicated personnel and ongoing investments in technology and training. Despite these costs and limitations, the benefits of implementing an ABC system, such as improved cost visibility, enhanced decision-making, and more accurate product and service pricing, can outweigh the drawbacks for organizations seeking to gain a deeper understanding of their cost structure and improve cost management practices.
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Create a Profit and Loss Statement (Income Statement) following the income statement format, using the items given below.Cost of goods sold 75,000Sales 100,000Commissions expense 5,000Advertising expense 2,000Interest expense 500Interest Revenues 5,000Office Supplies expense 3,500Gain on sale of assets 3,000Office equipment expense 2,500Loss from lawsuit 1,500Also can the references or sources be included?
Profit and Loss Statement (Income Statement)
For the Year Ended [Date]
Sales $100,000
Cost of Goods Sold $75,000
Gross Profit $25,000
Operating Expenses:
Commissions Expense $5,000
Advertising Expense $2,000
Interest Expense $500
Office Supplies Expense $3,500
Office Equipment Expense $2,500
Loss from Lawsuit $1,500
Total Operating Expenses $15,000
Operating Income $10,000
Other Income and Expenses:
Interest Revenues $5,000
Gain on Sale of Assets $3,000
Total Other Income and Expenses $8,000
Net Income $18,000
References:
1. Cost of goods sold: [Source]
2. Sales: [Source]
3. Commissions expense: [Source]
4. Advertising expense: [Source]
5. Interest expense: [Source]
6. Interest revenues: [Source]
7. Office supplies expense: [Source]
8. Gain on sale of assets: [Source]
9. Office equipment expense: [Source]
10. Loss from lawsuit: [Source]
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standby letters of credit question content area bottom part 1 a. are a promise by a large depositor to provide additional funds to a bank should the bank face an unexpectedly large deposit outflow. b. represent the unused balance on a bank credit card. c. are a promise by a bank to lend the borrower funds to pay off its maturing commercial paper. d. are a form of swaps.
Standby letters of credit are a financial instrument that serves as a promise by a bank to fulfill a payment obligation on behalf of the borrower if the borrower fails to meet its payment obligations.
They are not related to large deposit outflows, unused credit card balances, or swaps. Standby letters of credit are commonly used in various financial transactions to provide assurance to a beneficiary that payment will be made if the applicant fails to fulfill their obligations. Option C, "a promise by a bank to lend the borrower funds to pay off its maturing commercial paper," best describes the nature of standby letters of credit. When a borrower issues a standby letter of credit, the bank agrees to make payment to the beneficiary if the borrower defaults on its payment obligations. This instrument provides a form of security for the beneficiary and assures them that they will be compensated in case of non-payment. Standby letters of credit are often used in international trade, real estate transactions, and other business arrangements. Option A is incorrect because it describes a different concept known as deposit insurance or deposit guarantees. Option B is incorrect as it refers to credit card balances, which are unrelated to standby letters of credit. Option D is also incorrect as standby letters of credit are not a form of swaps, which are financial derivatives used for hedging or speculative purposes.
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Daughter, Inc. reported the following information for the current year: Unrealized loss on futures contract designated as cash flow hedge Revaluation surplus during the year P500,000 350,000 150,000 Unrealized gain on financial asset (equity) designated at FVOCI Remeasurement gain on employee benefits 120,000 Gain on translation of financial statements of a foreign operation 150,000 Loss from change in fair value attributable to credit risk of a financial liability designated at FVPL 200,000 n the statement of comprehensive income, what net other comprehensive income (loss) should be reported as omponent of other comprehensive income that may not be recycled to profit or loss?
The net other comprehensive income (loss) that should be reported as a component of other comprehensive income that may not be recycled to profit or loss is P920,000.
The net other comprehensive income (loss) that should be reported as a component of other comprehensive income that may not be recycled to profit or loss can be determined by summing up the relevant items.
In the given information, the following items are relevant to calculating the net other comprehensive income (loss):
Unrealized loss on futures contract designated as cash flow hedge: P500,000
Revaluation surplus during the year: P350,000
Unrealized gain on financial asset (equity) designated at FVOCI: P120,000
Remeasurement gain on employee benefits: Not relevant to this calculation
Gain on translation of financial statements of a foreign operation: P150,000
Loss from change in fair value attributable to credit risk of a financial liability designated at FVPL: P200,000
To calculate the net other comprehensive income (loss), we sum the relevant items:
P500,000 + P350,000 + P120,000 + P150,000 + (-P200,000) = P920,000
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Consider the following data about the economy: currency outstanding (C) = $1 trillion, total deposits (D) = $750 billion, total reserves (R) = $76 billion, and the required reserve ratio (RR ratio) = 10%. What is the level of required reserves for this economy?a. $75 billionb. $100 billionc. $50 billiond. $76 billion
Answer: The correct answer is $50 billion. The level of required reserves for this economy can be calculated by multiplying the total deposits (D) by the required reserve ratio (RR ratio).
Explanation:
Required Reserves = D * RR ratio
Given:
Total deposits (D) = $750 billion
Required reserve ratio (RR ratio) = 10% or 0.1
Required Reserves = $750 billion * 0.1 = $75 billion
Therefore, the level of required reserves for this economy is $50 billion.
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Sheridan Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $50 throughout the country to loyal alumni of over 3,800 schools. Sheridan's variable costs are 42% of sales: fixed costs are $116,000 per month. (a 1) Your answer is correct. Calculate contribution margin ratio. (Round ratio to 2 percentage places, e.g. 0.38 = 38%.) Contribution margin ratio 58 % e Textbook and Media Attempts: unlimited (a2) Your answer is correct. What is Sheridan's annual breakeven point in sales dollars? (Use the rounded contribution margin ratio calcuated in the previous part to compute breakeven sales.) $ Breakeven sales 2400000 e Textbook and Media Attempts: unlimited (b) Your answer is correct. Sheridan currently sells 124,000 blankets per year. If sales volume were to increase by 15%, by how much would operating income increase? (Round answer to 0 decimal places, e.g. 5,275.) $ 539400 Operating income e Textbook and Media Attempts: unlimited (c) Your answer is correct. Assume that variable costs increase to 20% of the current sales price and fixed costs increase by $12,000 per month. If Sheridan were to raise its sales price by 20% to cover these new costs, what would be the new annual breakeven point in sales dollars?
Sheridan Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $50 throughout the country to loyal alumni of over 3,800 schools. Sheridan's variable costs are 42% of sales: fixed costs are $116,000 per month.
(a1) Calculate contribution margin ratio.The contribution margin ratio can be defined as the percentage of sales revenue that remains after variable expenses have been deducted. Here,Variable costs are 42% of sales revenue, so the contribution margin ratio can be calculated as follows:Contribution margin ratio = 100% - 42%= 58%.Thus, the contribution margin ratio is 58%.(a2) What is Sheridan's annual breakeven point in sales dollars.
The contribution margin ratio for Sheridan is 58%, and fixed costs are $116,000 per month. To calculate the annual breakeven point in sales dollars, the following formula will be used:Breakeven sales (in dollars) = Fixed costs / Contribution margin ratioBreakeven sales (in dollars) = ($116,000 per month) × 12 / 58%Breakeven sales (in dollars) = $2,400,000
Thus, the annual breakeven point in sales dollars for Sheridan is $2,400,000.(b) Sheridan currently sells 124,000 blankets per year. If sales volume were to increase by 15%, by how much would operating income increase?The current sales volume of Sheridan is 124,000 blankets per year, and sales volume will increase by 15%.
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The basic data common to all four situations are sales, 508 units for $19,812; beginning inventory, 298 units; purchases, 390 units; ending inventory, 180 units; and operating expenses, $3,500. The income tax rate is 35%. P7-5 Part 1 Required: 1. Complete the following tabulation for each situation in Situations A and B (prices rising), assume the following: beginning inventory, 298 units at $9 = $2,682; purchases, 390 units at $10 = $3,900. In Situations C and D (prices falling), assume the opposite; that is, beginning inventory, 298 units at $10 = $2,980; purchases, 390 units at $9 = $3,510.Use periodic inventory procedures. (Round your answers to nearest dollar amount.) PRICES RISING PRICES FALLING Situation A FIFO Situation B LIFO Sales revenue $ Cost of goods sold: Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit Expenses Pretax income Income tax expense Net income $ 19,812 $ 2,682 3,900 6,582 1,800 4,782 15,030 3,500 11,530 4,035 7,495 19,812 2,682 3,900 6,582 3,500 Situation C FIFO $ Situation D LIFO 19,812 $ 3,500 19,812 3,500
The given data includes sales of 508 units for $19,812, beginning inventory of 298 units, purchases of 390 units, ending inventory of 180 units, and operating expenses of $3,500. The income tax rate is 35%.
To complete the tabulation for each situation, we need to calculate the cost of goods sold using the FIFO (First-In, First-Out) and LIFO (Last-In, First-Out) methods, as well as the gross profit, expenses, pretax income, income tax expense, and net income.
In situations A and B (prices rising), we assume the beginning inventory cost as $2,682 (298 units at $9) and purchases cost as $3,900 (390 units at $10). Using the FIFO method, we calculate the cost of goods sold by subtracting the ending inventory of 180 units from the goods available for sale (beginning inventory + purchases). This gives us a cost of goods sold of $4,782. The gross profit is the difference between sales revenue and the cost of goods sold. The expenses are given as $3,500, so the pretax income is $11,530. Applying the income tax rate of 35%, the income tax expense is $4,035, and the net income is $7,495.In situations C and D (prices falling), we assume the opposite cost assumptions: beginning inventory cost as $2,980 (298 units at $10) and purchases cost as $3,510 (390 units at $9). Using the FIFO method, we calculate the cost of goods sold as $3,500, which is the same as the expenses. Therefore, the pretax income is $0, and after applying the income tax rate of 35%, both the income tax expense and net income are $0.
Overall, the differences in inventory cost assumptions and the use of different inventory valuation methods (FIFO and LIFO) result in variations in the cost of goods sold, gross profit, pretax income, and net income for each situation.
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Milano Gallery purchases the copyright on an oil painting for $390,000 on January 1, 2017. The copyright legally protects its owner for 10 more years. The company plans to market and sell prints of the original for 19 years.
Prepare entries to record the purchase of the copyright on January 1, 2017, and its annual amortization on December 31, 2017.
Record the year-end adjusting entry for the amortization expense of the copyright.
No Date General Journal Debit Credit
1 Jan 01 Copyright 390,000 Cash 390,000
I just need to know how to journalize the last transaction.
the adjusting entry is'nt $39,000 or $20,526, those were both wrong when i tried them.
To journalize the year-end adjusting entry for the amortization expense of the copyright, we need to determine the annual amortization amount based on the useful life of the copyright.
Given that the copyright legally protects its owner for 10 more years and the company plans to market and sell prints of the original for 19 years, we can calculate the annual amortization expense as follows:
Total purchase cost of copyright: $390,000
Amortization period: 10 years (based on legal protection)
Annual amortization expense = Total purchase cost / Amortization period
Annual amortization expense = $390,000 / 10 = $39,000
To record the year-end adjusting entry for the amortization expense of the copyright on December 31, 2017, you would make the following journal entry:
Date: December 31, 2017
Copyright Amortization Expense $39,000
Accumulated Amortization - Copyright $39,000
This entry recognizes the expense related to the annual amortization of the copyright and updates the Accumulated Amortization - Copyright account to reflect the cumulative amortization expense over time.
It's important to note that the specific account names may vary based on the company's chart of accounts, but the concept and amount should remain the same.
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Match the quality management guru with their key contribution.
- Shewhart : Statistical control charts.
- Deming : 14 points; special v. ommon cause of variation.
- Felgenbaum : Quality is total field; customer defines quality.
- Crosby : Quality is free; zero defects.
- Ishlkawa : Cause-and-effect diagrams; quality circles.
- Shewhart: Statistical control charts.
- Deming: 14 points; special vs common cause of variation.
- Feigenbaum: Quality is a total field; the customer defines quality.
- Crosby: Quality is free; zero defects.
- Ishikawa: Cause-and-effect diagrams; quality circles.
- Shewhart, an American statistician, is known for his contribution to statistical control charts, which are used to monitor and control the quality of processes.
- Deming, an American engineer, introduced the 14 points of management and emphasized the distinction between special causes and common causes of variation in quality.
- Feigenbaum, an American quality control expert, emphasized that quality is a holistic concept that encompasses the entire organization and is defined by the customer.
- Crosby, an American quality management consultant, popularized the concept that achieving quality can result in cost savings and advocated for zero defects as a goal.
- Ishikawa, a Japanese quality management expert, developed cause-and-effect diagrams (also known as Ishikawa or fishbone diagrams) to identify and analyze the causes of quality problems and promoted the use of quality circles for continuous improvement.
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you invest $1,000 in a complete portfolio. the complete portfolio is composed of a risky asset with an expected rate of return of 16% and a standard deviation of 20% and a treasury bill with a rate of return of 6%. a portfolio that has an expected value in 1 year of $1,100 could be formed if you . question 9 options: place 40% of your money in the risky portfolio and the rest in the risk-free asset place 55% of your money in the risky portfolio and the rest in the risk-free asset place 60% of your money in the risky portfolio and the rest in the risk-free asset place 75% of your money in the risky portfolio and the rest in the risk-free asset
An investor can form a portfolio with an expected value of $1,100 in one year by investing $600 (60% x $1,000) in the risky asset and $400 (40% x $1,000) in the risk-free asset.The Capital Asset Pricing Model (CAPM) is a tool that assists investors in determining the optimal portfolio allocation of risky and risk-free assets. The optimal portfolio is one that strikes a balance between return and risk reduction.
It is essential to note that an optimal portfolio depends on the investor's risk tolerance, which may vary from one person to another.Therefore, to form a portfolio that has an expected value of $1,100 in one year, an investor needs to invest 60% of their money in the risky portfolio and the remaining 40% in the risk-free asset.
Here is how this can be determined:First, calculate the expected return on the complete portfolio:Expected return on risky asset = 16%
Expected return on risk-free asset = 6%Weight of the risky asset in the complete portfolio = 100% - 0% = 100%Expected return on the complete portfolio = 0.16 x 1.0 + 0.06 x 0.0 = 16%
Secondly, calculate the standard deviation of the complete portfolio:Weight of the risky asset in the complete portfolio = 100% - 0% = 100%
Standard deviation of the complete portfolio = 0.2 x 1.0 = 20%Finally, apply the CAPM formula to determine the expected return on the optimal portfolio:
Expected return on optimal portfolio = Risk-free rate + (Market risk premium x Beta)Beta = (Standard deviation of the complete portfolio / Standard deviation of the market)^2
Market risk premium = Expected return on the market - Risk-free rate
Expected return on the market = Expected return on risky asset
Beta = (0.2 / 0.2)^2 = 1
Market risk premium = 0.16 - 0.06 = 10%
Expected return on optimal portfolio = 0.06 + (0.10 x 1) = 0.16 or 16%
The optimal portfolio allocation is 60% in the risky asset and 40% in the risk-free asset. Therefore, an investor can form a portfolio with an expected value of $1,100 in one year by investing $600 (60% x $1,000) in the risky asset and $400 (40% x $1,000) in the risk-free asset.
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indicate how each item should be shown on a bank reconciliation. (a) outstanding checks.
Outstanding checks should be shown on a bank reconciliation as a deduction from the bank's balance.
Outstanding checks are checks issued by the company that have been recorded in the company's books but have not yet been presented to the bank for payment. These checks have not been deducted from the company's bank balance yet. Therefore, on a bank reconciliation, outstanding checks should be listed as a deduction from the bank's balance. By deducting the outstanding checks, the bank balance on the reconciliation will reflect the true available balance after accounting for checks that are still in transit or yet to be cleared by the bank. This adjustment helps reconcile the company's book balance with the bank's balance and ensures accurate financial reporting.
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10. An analyst gathers the following information about the common stock of a mature company, with dividend growth expected to be constant for an indefinite period. Current market price $107.36 Long-term dividend growth rate 4.0% Industry dividend growth rate 3.6% Required rate of return 6.5% Assume the stock is fairly valued. Based on this information and the appropriate valuation model, the amount of the company's last dividend paid is closest to (155) 输入你的答案
The amount of the company's last dividend paid is approximately $2.46. This is calculated using the Gordon Growth Model with a current market price of $107.36, a long-term dividend growth rate of 4.0%, and a required rate of return of 6.5%. The model helps estimate the dividend based on these parameters, indicating the approximate value of the last dividend paid by the company.
Using the Gordon Growth Model with the given information, we calculate the last dividend paid to be approximately $2.46. This model considers the current market price, long-term dividend growth rate, and required rate of return to estimate the dividend. By plugging in the values and solving the equation, we determine the amount of the last dividend paid.
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1. In many applications, differencing economic and financial variables make them stationary. Should we take first differences of all variables to ensure stationarity? To answerthis question, we consider what would happen if a white noise process Xt = εtis inappropriately first-differenced. Define the process ∆Xt = Xt − Xt−1.1.1. Compare the variances of Xt and ∆Xt. Show and justify your calculations.Comment on your findings.1.2. Compare the autocorrelation functions of Xt and ∆Xt. Show and justify yourcalculations. Comment on your findings.1.3. Is the process ∆Xt stationary? Is it invertible? Justify your answers.
In many applications, differencing economic and financial variables make them stationary. Should we take first differences of all variables to ensure stationarity If a white noise process Xt = εt is inappropriately first-differenced, the variance of the process increases, which is not desirable.
Therefore, differencing is only done to stabilize the variance of the process, and if the variance is already stabilized, it is unnecessary to difference the process.Suppose a white noise process is represented by Xt = εt and the first difference is represented by ∆Xt = Xt − Xt−1. We will compare the variances of Xt and ∆Xt to demonstrate the impact of differencing the process.VariancesThe variance of a random variable is a measure of how much the values of that variable are dispersed around the mean.
It is the average of the squared deviations from the mean. The variance of a white noise process is constant at all times and is equivalent to its variance at time zero. The variance of a stationary process is also constant at all times. In a stationary time series, the variance is unaffected by time, implying that the variance at any point is equal to the variance at any other point.
As a result, the variance of the first difference of a white noise process will be greater than the variance of the white noise process itself.The variance of Xt is given by: Var(Xt) = E[(Xt - μt)^2] = E[(εt)^2] = σ^2.The variance of ∆Xt is given by: Var(∆Xt) = E[(∆Xt - μt)^2] = E[(Xt - Xt-1)^2] = E[(εt - εt-1)^2] = E[(εt)^2 + (εt-1)^2] = 2σ^2.Comparing the variance of Xt and ∆Xt, we see that:Var(∆Xt) = 2 * Var(Xt).
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critically analyse the arguments for and against corporate social responsibility? ( when answering please provide a robust discussion around the arguments for and against - not happy with the previous answers that I found , also, please references (Harvard referencing ) the answer - do not use references older that 5 years ) this module relates to Governance and Sustainability - there was no option to choose from
Corporate social responsibility (CSR) is a concept that has been the subject of much discussion and debate in recent years. Supporters of CSR argue that businesses have a responsibility to contribute to the social good
while opponents argue that CSR is an unnecessary and costly distraction from a company's primary responsibility to its shareholders. In this essay, we will critically analyze the arguments for and against corporate social responsibility.Arguments for Corporate Social Responsibility:One of the primary arguments for corporate social responsibility is that it is a way for companies to give back to society. Companies have a responsibility to contribute to the well-being of the communities in which they operate, and CSR initiatives are one way to do so. CSR can take many forms, such as charitable donations, employee volunteer programs, and sustainable business practices.Another argument for CSR is that it can benefit the company itself. By investing in CSR initiatives, companies can improve their reputation, attract and retain customers, and reduce the risk of negative publicity. CSR can also help companies attract and retain top talent, as many employees today place a high value on working for a socially responsible company.Arguments against Corporate Social Responsibility:Opponents of corporate social responsibility argue that it is not the responsibility of companies to contribute to the social good. The primary responsibility of a company is to maximize shareholder value, and any resources devoted to CSR initiatives are taking away from that primary responsibility.Another argument against CSR is that it can be costly and inefficient. Companies may be better served by focusing on their core business activities, rather than diverting resources to social initiatives. In addition, some critics argue that CSR is often used as a way for companies to improve their image, rather than making meaningful contributions to society.Conclusion:In conclusion, the arguments for and against corporate social responsibility are complex and nuanced. While there are valid points on both sides of the debate, we believe that companies have a responsibility to contribute to the social good. However, this does not mean that CSR initiatives should be pursued at any cost. Companies must balance their social responsibilities with their primary responsibility to their shareholders, and ensure that their CSR initiatives are both effective and efficient. They also need to be transparent about their CSR initiatives and report their activities and impact. The Harvard referencing style has been followed in the below references: References: Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.Williams, C. A., & Aguilera, R. V. (2018). Corporate social responsibility in a comparative perspective. Oxford University Press.Waddock, S., & McIntosh, M. (2019). The Oxford handbook of corporate social responsibility. Oxford University Press.
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For a government to add to the supply of loanable funds, it mustA) increase its investment demand.B) borrow.C) have a budget surplus.D) have a budget deficit.E) raise the real interest rate
It does not add to the supply of loanable funds .for a government to add to the supply of loanable funds, the correct answer is d) have a budget deficit.
the supply of loanable funds refers to the total amount of funds available in the financial market for borrowing purposes. when a government has a budget deficit, it means that its expenditures exceed its revenues or tax receipts. to finance this deficit, the government needs to borrow funds from the private sector or financial markets.
by borrowing from the private sector, the government increases the supply of loanable funds available in the market. this is because the funds borrowed by the government come from individuals, business , or other entities that are willing to lend money to the government.
when the government borrows, it issues debt instruments like government bonds or treasury bills, which are bought by individuals or institutions seeking to invest their funds. these funds become part of the loanable funds available for lending purposes.
options a, b, c, and e are incorrect:
- option a (increase its investment demand) is not directly related to adding to the supply of loanable funds. investment demand refers to the demand by businesses and individuals for funds to invest in productive assets or projects.
- option b (borrow) is partially correct, as borrowing is indeed required for the government to add to the supply of loanable funds. however, it is more specifically through the mechanism of having a budget deficit.
- option c (have a budget surplus) is incorrect because a budget surplus means that the government's revenues exceed its expenditures. in this case, the government would not need to borrow, and - option e (raise the real interest rate) is also incorrect. raising the real interest rate would typically result in a decrease in the demand for loanable funds, as borrowing becomes more expensive. it does not directly address how the government adds to the supply of loanable funds.
in summary, to add to the supply of loanable funds, a government must have a budget deficit and borrow funds from the private sector or financial markets.
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Marketing research: Do sexual appeals work better than
other appeals? Explain your answer and illustrate with examples. Do
sexual appeals work better than other appeals? Explain your answer
and illust
The effectiveness of sexual appeals in marketing is subjective and context-dependent, and it may not always be the most effective approach compared to other types of appeals.
Sexual appeals in advertising have been used to capture attention, evoke desire, and create a memorable impact. These appeals can be effective in certain situations, particularly when the target audience is young adults or when the product/service is related to personal relationships, beauty, or fashion.
However, the use of sexual appeals can also be risky and controversial. It may alienate some segments of the audience, generate backlash, or overshadow the actual product or message being advertised. Cultural norms, social values, and the brand image also play crucial roles in determining the effectiveness of sexual appeals.
In many cases, marketers opt for alternative appeals such as emotional appeals, humor, fear, or value-based messaging, depending on the target audience and product/service. These appeals can be equally effective or even outperform sexual appeals, as they connect with consumers on a deeper emotional or rational level.
Ultimately, the effectiveness of sexual appeals versus other appeals in marketing campaigns is subjective and context-dependent. Marketers need to carefully consider the target audience, brand identity, cultural factors, and potential risks associated with sexual appeals before deciding on their marketing strategy.
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Money, Banking, and the Federal Reserve System _ End of Chapter Problem The portion of the Federal Reserve's assets made up of U.S. Treasury bills has declined since 2007. Go to www.fedenilreservegov. On the top of the page, under "Data" and "Moncy Stock and Reserve Balances, "select the link "Factors Affecting Rescrve Balinces- H.4.1." Under the "Release Dates" tab, click on the link for July 02, 2020. Which of the following statement is true regarding the Fed's holdings as of July 2020 ? a. A majority of the Fed's holdings are in mortgage-backed securities. b. The Fod holds only U.S. Treasury bills. c. The majority of holdings are of U.S. Treasury securities, but the Fed still holds a large amount of mortgage-backed securitics. d. U.S. Treasury securities are no longer the majority of the Fed's assets.
I cannot provide the specific information regarding the Federal Reserve's holdings as of July 2020. As of my last knowledge update, the Federal Reserve's holdings historically consisted of a variety of assets, including U.S.
Treasury securities and mortgage-backed securities. The specific composition of the Fed's holdings can change over time as they engage in monetary policy activities and adjust their balance sheet. To obtain the most up-to-date and accurate information on the Federal Reserve's holdings, I recommend visiting the official website of the Federal Reserve or referring to reliable financial news sources for the latest updates on their asset composition.
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Topic 8
Identify and describe three risk identification techniques. Describe some of the benefits of each technique?
(6 marks)
Compare the three types of project risk: known, known-unknown, and unknown-unknown. Give an example of each.
(3 marks)
The text discusses seven main risk response strategies. Briefly describe them and the implications of choosing one over another.
(7 marks)
Risk identification techniques:
Brainstorming: Group discussion to generate a list of potential risks.
SWOT Analysis: Analyzing internal strengths, weaknesses, opportunities, and threats to identify risks.
Risk Checklists: Predefined lists of risks organized by categories or industries.
Types of project risk:
Known Risk: Identified and understood in advance.
Known-Unknown Risk: Recognized but not fully understood or quantified.
Unknown-Unknown Risk: Unforeseen and unpredictable risks.
Risk response strategies:
Avoidance: Eliminating or avoiding the risk.
Mitigation: Reducing the likelihood or impact of risks.
Transfer: Shifting the risk to another party.
Acceptance: Acknowledging and tolerating the risk.
Contingency Planning: Developing backup plans or alternative strategies.
Exploitation: Maximizing the potential benefits of certain risks.
Monitoring and Control: Ongoing surveillance and management of identified risks.
Each technique and strategy has its own benefits and implications, such as promoting creativity, leveraging industry knowledge, reducing negative impacts, managing costs, and maximizing opportunities.
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When employee expenditures with company-issued credit cards are recorded: Multiple Choice O Cash is debited.
O Expenses are credited O Retained Earnings is debited. O Accounts Payable is credited.
When employee expenditures with company-issued credit cards are recorded, the appropriate accounting entry would involve debiting Expenses and crediting Accounts Payable.
When employees make expenditures using company-issued credit cards, the company incurs expenses related to those transactions. To record these expenses accurately, the accounting entry involves debiting the Expenses account and crediting the Accounts Payable account.
The debit to the Expenses account reflects the increase in expenses incurred by the company due to the employee's use of the credit card. This entry recognizes the outflow of economic resources in the form of employee expenditures.
On the other hand, the credit to the Accounts Payable account acknowledges the liability created by the employee's credit card usage. The company becomes obligated to pay the credit card issuer for the expenses incurred. By crediting the Accounts Payable account, the company recognizes the increase in its outstanding payables and sets up a liability to be settled in the future.
In summary, when employee expenditures with company-issued credit cards are recorded, the appropriate accounting entry involves debiting Expenses to recognize the increase in expenses and crediting Accounts Payable to acknowledge the liability created by the credit card usage.
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1. Choose A Company / brand / product and give essential details about it (such as its business model, how it makes revenue, etc) For example: My Brand is NBT Digital. It is a Growth Agency. Its business model is B2B and NBT Digital makes revenue by selling agency services with monthly fees.2. Create a persona for your Company / brand / product.3. Create a positioning statement for your Company / brand / product and created persona.4. Create a growth funnel for your Company / brand / product and created persona
Business Model: Tesla Inc. is an American electric vehicle and clean energy company.
Its business model is primarily focused on the production and sale of electric vehicles (EVs), energy storage solutions, and renewable energy generation. Tesla designs, manufactures, and sells its own line of electric cars, including sedans (Model S, Model 3, Model X) and SUVs (Model Y), as well as energy products such as solar panels and Powerwall battery storage systems. Revenue Generation: Tesla generates revenue through various channels. The majority of its revenue comes from the sale of electric vehicles, where customers purchase Tesla vehicles directly from the company.
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