The 2019 common-size income statement of Creek Enterprises indicates that its gross profit margin and operating profit margin have decreased in comparison to the previous year, while its cost of goods sold and selling, general, and administrative expenses have increased, which may require further analysis and investigation.
A common-size income statement is a financial statement in which the amounts for each item in the income statement are expressed as percentages of total revenue. This statement is used to compare the income statement items with previous years, competitor’s income statement and the industry standard.
Common-size income statement of Creek Enterprises for 2018 and 2019 is given in the below table:
Common-size Income Statement 2018 2019
Revenue 100.00% 100.00%
Cost of goods sold 62.70% 63.25%
Gross profit 37.30% 36.75%
Selling, general, and administrative expenses 18.20% 18.25%
Depreciation expense 4.00% 4.50%
Operating profit 14.10% 13.00%
Interest expense 2.10% 2.20%
Income before taxes 12.00% 10.80%
Income taxes 4.80% 4.30%
Net income 7.20% 6.50%
The common-size income statement analysis shows that the gross profit margin of the company decreased from 37.30% in 2018 to 36.75% in 2019, while the percentage of cost of goods sold and the percentage of selling, general, and administrative expenses have increased by 0.55% and 0.05%, respectively, from 2018 to 2019.
As a result, the company's operating profit margin has decreased by 1.10% from 14.10% in 2018 to 13.00% in 2019.The income before taxes margin has decreased from 12.00% in 2018 to 10.80% in 2019, which is due to the increase in interest expense by 0.10% from 2.10% in 2018 to 2.20% in 2019.
The net income margin has also decreased from 7.20% in 2018 to 6.50% in 2019.
Therefore, the 2019 common-size income statement of Creek Enterprises indicates that its gross profit margin and operating profit margin have decreased in comparison to the previous year, while its cost of goods sold and selling, general, and administrative expenses have increased, which may require further analysis and investigation.
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The monthly market for US. steel production (in millions of tons per month) is described in the table below. An increase in the price of iron ore, a critical input in the production of steel, shifts the supply curve to the left, decreasing supply by 200,000 tons at each price. (Hint: 200.000 tons =0.2 million tons) Instructions: Round your answers to 1 decimal place a. Fill in the new supply schedule in the table using the "New Quantity of Steel Supplied" column b. What are the initial equilibrium price and quantity in the steel market? P=$ per ton Q= million tons of steel C. What are the new equilibrium price and quantity in the market? P=$ per ton Q= million tons of steel
To fill in the new supply schedule, we need to decrease the quantity supplied by 0.2 million tons (200,000 tons) at each price level. Let's assume the initial supply schedule is as follows:
Price ($ per ton) Quantity Supplied (million tons)
100 4.5
120 5.0
140 5.5
160 6.0
180 6.5
To obtain the new supply schedule, we subtract 0.2 million tons from the quantity supplied at each price level:
Price ($ per ton) New Quantity of Steel Supplied (million tons)
100 4.3
120 4.8
140 5.3
160 5.8
180 6.3
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For each of the following scenarios, use a supply and demand diagram to illustrate the effect of the given shock on the equilibrium price and quantity in the specified competitive market. Explain whether there is a shift in the demand curve, the supply curve, or neither. c) US steel mills buy their coal in Latin America. Show the effect of the above mentioned policy (in (c)) on the Latin American coal market. d) The popularity of a new fad diet causes consumers' tastes to shift away from bread. Show the effect on the market for butter, which is used mainly when people eat toast.
c) US steel mills buy their coal in Latin America. Show the effect of the above-mentioned policy (in (c)) on the Latin American coal market.
When US steel mills buy their coal in Latin America, there is a shift in the demand curve of the Latin American coal market. As demand for Latin American coal from US steel mills increases, the demand curve shifts to the right, from D1 to D2 in the diagram shown below. This shift in demand leads to a new equilibrium point in the market for Latin American coal. Equilibrium price increases from P1 to P2 while equilibrium quantity increases from Q1 to Q2. The price increases as demand for Latin American coal increases while the quantity increases as more Latin American coal is demanded by US steel mills.d)The popularity of a new fad diet causes consumers' tastes to shift away from bread. Show the effect on the market for butter, which is used mainly when people eat toast.
The popularity of a new fad diet causes consumers' tastes to shift away from bread, leading to a shift in the demand curve of butter. As demand for bread decreases, the demand curve of butter shifts to the left, from D1 to D2 in the diagram shown below. This shift in demand leads to a new equilibrium point in the market for butter. Equilibrium price decreases from P1 to P2 while equilibrium quantity decreases from Q1 to Q2. The price decreases as demand for butter decreases while the quantity decreases as less butter is demanded due to a decrease in the demand for bread
For scenario (c), the Latin American coal market experiences a shift in the demand curve, which leads to an increase in the equilibrium price and quantity. For scenario (d), the butter market experiences a shift in the demand curve, which leads to a decrease in the equilibrium price and quantity.
When a shift in demand occurs, there is a change in the quantity demanded at each price level. This leads to a new equilibrium point in the market. When a shift in supply occurs, there is a change in the quantity supplied at each price level. This also leads to a new equilibrium point in the market. In both cases, the equilibrium price and quantity change, but the direction of the change depends on the direction of the shift and the relative magnitude of the shift in supply and demand.
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Explain external environment’s impact on organization’s change management strategy. Give examples.
lead and manage organisational change that is my subject
The external environment's impact on change management strategy highlights the need for organizations to be agile, proactive, and responsive to external forces to remain competitive and achieve sustainable growth.
The impacts of the external environment on the organisation are:
Market Conditions: If the market becomes more competitive or customer demands shift, an organization may need to change its products, services, or business model. Technological Advancements: Technological advancements can disrupt industries and necessitate organizational change. Regulatory Changes: Changes in regulations and laws can impact an organization's operations and require adjustments. Economic Factors: Economic fluctuations, such as recessions or inflation, can drive organizations to restructure, downsize, or invest in new opportunitiesSocial and Cultural Shifts: Changing social trends and cultural attitudes can influence an organization's products, services, and practices.To know more about external environment, visit:
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A firm has sales of $4,720, costs of $2,625, interest paid of $167, and depreciation of $469. The tax rate is 22 percent. What is the cash coverage ratio?
The cash coverage ratio measures a firm's ability to cover its interest payments using its operating cash flow. It is calculated by dividing the operating cash flow by the interest paid.
In this case, the firm's sales are $4,720, costs are $2,625, interest paid is $167, and depreciation is $469. To calculate the operating cash flow, we subtract the costs and depreciation from the sales: Operating Cash Flow = Sales - Costs - Depreciation Operating Cash Flow = $4,720 - $2,625 - $469 Operating Cash Flow = $1,626 The interest paid is given as $167. Now, we can calculate the cash coverage ratio: Cash Coverage Ratio = Operating Cash Flow / Interest Paid Cash Coverage Ratio = $1,626 / $167 Calculating the ratio, we find: Cash Coverage Ratio ≈ 9.73 The cash coverage ratio of approximately 9.73 indicates that the firm's operating cash flow is sufficient to cover its interest payments nearly 9.73 times. This implies that the firm has a strong ability to meet its interest obligations and suggests financial stability in terms of servicing its debt.
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Identify all six parts of the Toulmin model in the following arguments.
3. Twelve hours ago, the patient fell from his motorcycle and sustained a blow to the head, a scalp wound, and he has dizziness, lethargy and fever. Previous clinical experience shows that in the absence of preventative measures, injuries of this kind lead to infection. Therefore, it is strongly recommended that the patient’s wound would be flushed and closed, and penicillin be administered, unless the patient is allergic to it.
The Toulmin model is an approach to analyzing arguments by assessing the different components of an argument.
The six parts of the Toulmin model are:
Claim (C): The main point being argued for. In this case, the claim is that the patient's wound should be flushed and closed, and penicillin should be administered, unless the patient is allergic to it.
Grounds (G): The evidence or reasons given to support the claim. In this case, the grounds are that the patient fell from his motorcycle and sustained a blow to the head, a scalp wound, and he has dizziness, lethargy and fever. Previous clinical experience shows that in the absence of preventative measures, injuries of this kind lead to infection.
Warrant (W): The principle, provision, or chain of reasoning that connects the grounds to the claim. In this case, the warrant is that the patient is at risk of infection if preventative measures are not taken.
Qualifier (Q): The degree of force or certainty associated with the claim. In this case, the qualifier is that the treatment is strongly recommended.
Rebuttal (R): The counter-arguments or objections to the claim. In this case, there are no obvious rebuttals or counter-arguments.
Backing (B): Additional support or justification for the grounds, warrant, or claim. In this case, there are no obvious backing statements.
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Brian has some strong opinions about books (b) and movies (m).He is indifferent over all bundles (b,m)=(9− 3
x
,x) where 9− 3
x
≥0 and x≥0. Brian always believes that more is better when it comes to books and movies. For Brian, which of the following statements are true? Which of the following statements are false? Why? a. (0,28)≺(9,0) b. (1,24)∼(7,6) c. (6,9)≻(9− 3
x
,x) for any x values where 9− 3
x
≥0 and x≥0 d. (y,26−3y)∼(9− 3
x
,x) for any x and y values where y≥0,26−3y≥0,9− 3
x
≥0 and x≥0 Mary also has some strong opinions about books (b) and movies (m). She is indifferent over all bundles (b,m)=(z,100/z) where z≥0. Mary always believes that more is better when it comes to books and movies. For Mary, which of the following statements are true? Which of the following statements are false? Why? e. (0,10000)≻(10,10) f. (1,100)∼(10,11) g. (10,10)∼(1000, 10
1
)
For Brian:
Statement b is true.
Statements a, c, and d are false.
For Mary:
Statement g is true.
Statements e and f are false.
For Brian:
a. (0,28) ≺ (9,0)
This statement is false. Brian always believes that more is better when it comes to books and movies. In this case, (9,0) represents 9 books and no movies, which is considered better than having no books and 28 movies. Therefore, (0,28) is not preferred over (9,0).
b. (1,24) ∼ (7,6)
This statement is true. Both bundles have the same total quantity (25) of books and movies, so Brian would be indifferent between them.
c. (6,9) ≻ (9 - 3x, x) for any x values where 9 - 3x ≥ 0 and x ≥ 0
This statement is false. The bundle (6,9) represents having 6 books and 9 movies, which is not preferred over any bundle of the form (9 - 3x, x) where 9 - 3x ≥ 0 and x ≥ 0. Brian always believes that more is better, so having fewer books and movies in the bundle (6,9) would be considered worse.
d. (y, 26 - 3y) ∼ (9 - 3x, x) for any x and y values where y ≥ 0, 26 - 3y ≥ 0, 9 - 3x ≥ 0, and x ≥ 0
This statement is true. Both bundles have the same total quantity (26) of books and movies, so Brian would be indifferent between them.
For Mary:
e. (0,10000) ≻ (10,10)
This statement is true. Mary always believes that more is better when it comes to books and movies. In this case, having 10 books and 10 movies is preferred over having no books and 10,000 movies.
f. (1,100) ∼ (10,11)
This statement is false. The bundle (10,11) represents having more books and movies compared to (1,100), so Mary would consider (10,11) as better.
g. (10,10) ∼ (1000, 10^1)
This statement is true. Both bundles have the same total quantity (20) of books and movies, so Mary would be indifferent between them.
In summary:
For Brian:
Statement b is true.
Statements a, c, and d are false.
For Mary:
Statement g is true.
Statements e and f are false.
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Roy Micky wants to open a new Nakamal (Kava Bar) in Port Vila. He knows he is entering a highly competitive market, but is determined to give it a go as it is something his family have always wanted.
There are 96 other Nakamals in Port Vila that Roy will have to compete with. In addition to this, he does not have an established presence in the market. These are just 2 of his concerns. The other 5 are required to come from you.
1. List and justify (from an operations perspective) 5 key things that he should consider in setting up his business. In answering this question, think of the different chapters that have comprised this course – you should get a point from each chapter. (20 marks)
NB. This question is asking for 5 points of concern – each carries 4 marks
1. Location selection: Choosing the right location for the Nakamal is crucial for its success. Roy should consider factors such as proximity to potential customers, accessibility, visibility, and competition. He should conduct market research to identify areas with high demand and limited competition, ensuring that the chosen location aligns with his target market and offers a competitive advantage.
2. Operations planning and design: Roy needs to carefully plan and design the operations of his Nakamal. This includes determining the layout of the bar, optimizing the flow of customers and staff, and ensuring efficient use of space. He should also consider the capacity of the bar, equipment and furniture requirements, and the design of the service area to facilitate smooth operations and create a positive customer experience.
3. Quality and sourcing of Kava: As a Kava Bar, the quality and sourcing of Kava will greatly impact customer satisfaction and repeat business. Roy should establish relationships with reputable suppliers who provide high-quality Kava. He should consider factors such as the freshness of the Kava, its potency, and any certifications or quality standards associated with the sourcing and processing of Kava.
4. Staff recruitment and training: The success of the Nakamal will depend on the knowledge, skills, and attitude of its staff. Roy should develop a recruitment strategy to attract competent and customer-focused employees. Proper training should be provided to ensure that the staff is well-versed in Kava preparation, serving techniques, customer service, and responsible alcohol service, if applicable. Ongoing training and development programs can help maintain a skilled and motivated workforce.
5. Marketing and branding: In a highly competitive market with numerous Nakamals, effective marketing and branding are essential to differentiate Roy's business. He should develop a strong brand identity that reflects the unique aspects of his Nakamal and appeals to the target market. Marketing strategies can include social media presence, local advertising, partnerships with local businesses or events, and promotional activities. Regularly engaging with customers and seeking feedback can help in building a loyal customer base.
Setting up a new business requires careful consideration of various operational factors. In Roy's case, he faces the challenges of intense competition and establishing his presence in the market. To address these concerns and ensure the success of his Nakamal, he should focus on key areas such as location selection, operations planning and design, quality and sourcing of Kava, staff recruitment and training, and marketing and branding.
The location of the Nakamal plays a crucial role in attracting customers and differentiating from competitors. By carefully evaluating potential locations and considering factors such as accessibility, visibility, and competition, Roy can choose a strategic location that maximizes his chances of success.
Operations planning and design are essential to ensure smooth and efficient operations. Roy should pay attention to the layout of the bar, the flow of customers and staff, and the capacity and design of the service area. A well-planned and designed operation can enhance the customer experience and improve overall efficiency.
The quality and sourcing of Kava are critical for customer satisfaction. Roy should establish relationships with reliable suppliers who can provide high-quality Kava that meets customer expectations. This includes considering factors such as freshness, potency, and any certifications associated with the sourcing and processing of Kava.
Recruiting and training competent staff is vital for delivering excellent customer service. Roy should develop a recruitment strategy to attract qualified individuals and invest in comprehensive training programs to ensure that his staff has the necessary skills and knowledge to provide a memorable experience for customers.
Marketing and branding are crucial to differentiate Roy's Nakamal in a competitive market. By developing a strong brand identity, implementing effective marketing strategies, and engaging with customers, he can create awareness and build a loyal customer base.
Considering these five key aspects will help Roy address his concerns and increase his chances of success in
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A machine cost $360,000, has annual depreciation of $60,000, and has accumulated depreciation of $270,000 on December 31, 2012. On April 1, 2013, when the machine has a fair value of $82,500, it is exchanged for a machine with a fair value of $405,000 and the proper amount of cash is paid. The exchange lacked commercial substance. The pain to be recorded on the exchange is 50. $7,500 loss. $15,000 galn. S45,000 gain:
The gain to be recorded on the exchange is $315,000 or $45,000, c.
the gain to be recorded on the exchange is $45,000.
to determine the gain or loss on the exchange, we need to compare the fair value of the old machine on april 1, 2013, with its carrying value.
carrying value of the old machine = cost - accumulated depreciation
carrying value = $360,000 - $270,000 = $90,000
since the fair value of the old machine on april 1, 2013, is $82,500, which is lower than its carrying value, there is a loss on the exchange.
loss on the exchange = carrying value - fair valueloss = $90,000 - $82,500 = $7,500
however, since the exchange lacked commercial substance (meaning it did not significantly alter the future cash flows), we do not recognize the loss on the exchange.
instead, we compare the fair value of the new machine ($405,000) with the carrying value of the old machine ($90,000).
gain on the exchange = fair value of new machine - carrying value of old machine
gain = $405,000 - $90,000 = $315,000
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Which of the following statements about the Capital Market Line is/are true?
I. Under CAPM assumptions, a rational investor will only invest in a portfolio along the CML.
II. All portfolios along the CML have the same Sharpe Ratio.
III. Investors with different risk aversion would invest in different portfolios along the CML.
1) I only
2) II only
3) I and II only
4) I and III only
5) I, II and III
Please explain. Thank you!
The correct answer is 5) I, II, and III.I. Under CAPM assumptions, a rational investor will only invest in a portfolio along the Capital Market Line (CML). This is because the CML represents the efficient frontier, which consists of portfolios that offer the highest expected return for a given level of risk.
Any portfolio below the CML would have a lower expected return for the same level of risk, and any portfolio above the CML would have a higher level of risk for the same expected return. Therefore, rational investors will prefer portfolios along the CML. II. All portfolios along the CML have the same Sharpe Ratio. The Sharpe Ratio measures the risk-adjusted return of a portfolio, taking into account both the expected return and the volatility (risk) of the portfolio. Since the CML represents the efficient frontier, which consists of portfolios with the highest Sharpe Ratios, all portfolios along the CML will have the same Sharpe Ratio.
III. Investors with different risk aversion would invest in different portfolios along the CML. The CML allows investors to choose the portfolio that best matches their risk tolerance. It offers a range of portfolios with different combinations of expected return and risk. Investors with higher risk aversion would choose portfolios with lower levels of risk and lower expected returns, while investors with lower risk aversion would choose portfolios with higher levels of risk and higher expected returns. Therefore, investors with different risk aversion would invest in different portfolios along the CML.
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FINANCE
How to analysis income statement of specific company in finance report?
How to analysis Net income,Earning per share and Comparison with competitors?
The income statement, also known as the profit and loss statement, is an essential financial statement that is used to assess the financial well-being of a company.
This statement is an overview of the company’s income and expenses over a particular period, usually a year or a quarter. Analysis of the income statement is crucial for businesses, investors, and lenders to measure the company’s profitability, expenses, and revenue growth.There are several components to the income statement that need to be analyzed to get a comprehensive understanding of a company’s financial position, such as revenue, expenses, operating income, net income, and earnings per share. Below are a few key ways to analyze an income statement to get a better idea of a company’s financial health:Net IncomeNet income is the company’s revenue minus expenses. It indicates the amount of money that the company has earned over the period. A higher net income suggests that the company is profitable. It is crucial to compare the company's net income with previous periods, competitors, or the industry's average.Net income = Revenue - ExpensesEarnings per shareEarnings per share (EPS) is calculated by dividing the net income by the number of outstanding shares. It tells the amount of profit earned by each shareholder per share. A higher EPS indicates that the company is profitable and is likely to attract more investors.EPS = Net income / Number of outstanding sharesComparison with competitorsComparing a company's performance with its competitors can provide valuable insights into its financial performance. It is useful to compare key metrics such as revenue, net income, operating expenses, and earnings per share with competitors within the same industry. A comparative analysis helps investors and analysts to make more informed investment decisions by evaluating the company's performance within its industry. In conclusion, analyzing the income statement is crucial for assessing a company's profitability and financial health. Key components such as net income, earnings per share, and comparison with competitors should be examined to gain a better understanding of the company's financial position.
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Lowder Inc. issued 10% semiannual coupon bonds with a $1,000 face value 5 years ago. The bonds had 25 years to maturity at the time when they were issued. Investors currently require a 12% rate of return in the market. d. What is the dollar rate of return over that 2-year period?
Lowder Inc. issued bonds 5 years ago at 10% semiannual coupon bonds with a $1000 face value that had 25 years to maturity. The current market rate is 12%.
The calculation of the dollar rate of return for the last 2 years requires you to calculate the price of the bond and the amount of interest payments over the period.
Since the bonds were issued 5 years ago, there are 20 years left until maturity.
Since the coupon rate is 10%, the interest payment per year per bond would be $100.
If you are calculating the dollar rate of return over the past 2 years, you should only consider two of these payments.
The first step in calculating the bond price is to calculate the bond’s current yield to maturity.
We can use the following formula to calculate the yield to maturity for a 20-year bond:
Current yield to maturity = (annual interest payment + ((Face value – current price)/Years to maturity)) / ((Face value + current price)/2)
In this case, we know that the annual interest payment is $100, the face value is $1000, and the current rate is 12%.
To calculate the bond’s price, we need to use a financial calculator or spreadsheet software.
Using the financial calculator, we get a bond price of $947.16.
Since we are only interested in the last two years, we need to calculate the interest payment and the bond price after two years.
Since the bond pays interest semiannually, there will be four interest payments in the last two years.
To calculate the price of the bond in two years, we need to first calculate the semiannual interest payment.
The semiannual interest rate is 5%, which means that the semiannual interest payment is $50.
The current yield to maturity is 13%, which means that the bond price after two years would be $927.48.
The total interest payments over the last two years would be $200, and the total rate of return would be 20.22%.
Therefore, the dollar rate of return over the last two years is $202.20.
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Consider the following three statements 1. When translating financial statements to a different presentation currency, all items are translated at the average exchange rate for the year. 2. A company registered in Australia will always have the Australian dollar as a functional currency. 3. All subsidiaries of a company with the Australian dollar as a functional currency must also use the Australian dollar as their functional currency. What of the following statement is correct: Statement 1 Statement 2 Statement 3 Statements 1, 2 and 3 are all correct Statements 1, 2 and 3 are all incorrect
Statement 3 is correct: "All subsidiaries of a company with the Australian dollar as a functional currency must also use the Australian dollar as their functional currency."
This statement is based on the principle of consistency in accounting. The functional currency is the primary currency in which a company operates and conducts its business transactions. It represents the currency that has the most significant economic impact on the company's operations and cash flows. When a parent company has the Australian dollar as its functional currency, it means that the financial statements of the parent company are prepared and reported in Australian dollars.
As a result, its subsidiaries, which are integral parts of the parent company's operations, are required to use the same functional currency. Consistency in functional currency is crucial for financial reporting and consolidation purposes. It ensures that all entities within a consolidated group report their financial information in a consistent and comparable manner. It allows for meaningful analysis, evaluation of performance, and understanding of the financial position of the entire group.
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Balla Inc. leased equipment to Gaga Company on May 1, 2021. At that time the collectibility of the lease payments was not probable. The lease expires on May 1, 2022. Gaga could have bought the equipment from Balla for $5,600,000 instead of leasing it. Balla's accounting records showed a book value for the equipment on May 1, 2021, of $4,900,000. Balla's depreciation on the equipment in 2021 was $630,000. During 2021, Gaga paid $1,260,000 in rentals to Balla for the 8-month period. Balla incurred maintenance and other related costs under the terms of the lease of $112.000 in 2021. After the lease with Gaga expires, Balla will lease the equipment to another company for two years. Ignoring income taxes, the amount of expense incurred by Gaga from this lease for the year ended December 31, 2021, should be $1,260,000. $1,148,000. $518,000. $630,000.
The expense incurred by Gaga from the lease for the year ended December 31, 2021, should be $1,148,000. To determine this, we need to calculate the lease expense based on the information provided.
First, we consider the lease payments made by Gaga. Gaga paid $1,260,000 in rentals to Balla for the 8-month period in 2021. Since the lease expires on May 1, 2022, we can assume that the lease term covers the entire year of 2021. Therefore, we need to adjust the rental payment for the full year by multiplying it by 12/8 (8 months out of 12 months), which gives us $1,890,000 ($1,260,000 * 12/8).
Next, we consider the maintenance and other related costs incurred by Balla under the lease. The amount of $112,000 incurred in 2021 needs to be included in the lease expense.
Now, we calculate the total lease expense for 2021 by adding the adjusted rental payment ($1,890,000) and the maintenance costs ($112,000), which gives us $2,002,000 ($1,890,000 + $112,000).
However, we need to subtract the depreciation expense related to the leased equipment. Balla's depreciation on the equipment in 2021 was $630,000. Therefore, the adjusted lease expense for Gaga in 2021 is $1,372,000 ($2,002,000 - $630,000).
Therefore, the correct answer is $1,148,000.
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Afuer class, members will form groups of approximatety tive The managers of marketing and rescarch and developuent each. The groups will then consider the following scenario. seem more favorable as they know that work-life balance is One student will assume the role of the HR manager of a important. The managers of finance and production believe large manufacturing company who is leading a meeting that not being physicaliy preserst is detrimental to productivwith four senior managers workirg in the finance, market ity and the climate within their department.
The HR manager should encourage remote work as it fosters work-life balance and is favored by the majority. The concerns of the finance and production managers can be addressed through effective communication and collaboration tools, ensuring productivity and maintaining a positive work environment.
The HR manager should advocate for remote work as it promotes a healthy work-life balance, which is highly valued by the employees. Additionally, since the majority of members prefer remote work, it indicates that they find it more favorable. To address the concerns of the finance and production managers who believe physical presence is crucial for productivity and departmental climate, the HR manager should implement effective communication and collaboration tools. These tools can facilitate seamless interaction and teamwork, ensuring productivity while maintaining a positive work environment.
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Rodney is the owner of a small company which produces electric knives to cut fabric. The annual demand is 8000 knives and Rodney produces the knives in batches (Production run). On average Rodney can produce 150 knives per day. During the production process, demand has been about 40 knives per day. The cost to set up the process is R100, and it cost Rodney
Rodney is the owner of a small company that produces electric knives to cut fabric.
He produces the knives in batches (Production run), and the annual demand for his knives is 8000. On average, Rodney can produce 150 knives per day, and the demand has been about 40 knives per day during the production process. The total production time required to manufacture 8000 knives is given by the formula: Total Production Time = (Demand Quantity) / (Production Rate per day)In this case, the production rate is 150 knives per day and the demand is 8000 knives.
Therefore :Total Production Time = 8000 / 150Total Production Time = 53.33 days, which can be rounded up to 54 days. This means that Rodney would require 54 days to produce 8000 knives to meet the annual demand.
To find the optimal batch size, Rodney would use the Economic Production Quantity (EPQ) formula, which takes into consideration the setup costs, holding costs, and demand rate.
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In December of 2006 the United Nations General Assembly adopted the Convention on the Rights of Persons with Disabilities (CRPD). In the U.S, this convention: Was added as an Amendment to the U.S. Constitution. Was signed into law by President Bush Was approved by Congress, but vetoed by President Bush Failed to be ratified by the U.S. Congress
The Convention on the Rights of Persons with Disabilities (CRPD), adopted by the United Nations General Assembly in December 2006, was signed by President Bush but failed to be ratified by the U.S. Congress.
Ratification of international treaties in the United States requires the approval of two-thirds of the Senate. Although the CRPD received bipartisan support and was approved by the Senate Foreign Relations Committee, it fell short of the necessary votes for ratification in the full Senate. Therefore, the CRPD has not been incorporated into U.S. law and is not considered an amendment to the U.S. Constitution.
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you will be receiving the following cash flows: $5,000 today, $3,000 in one year, and $6,000 in four years. if the discount rate is 8%, what is the present value of this cash flow stream?
The present value of the cash flow stream is $12,121.88. This is calculated by discounting each cash flow to its present value using a discount rate of 8% and then summing them up.
To calculate the present value of the cash flow stream, we need to discount each cash flow to its present value and then sum them up.
Using a discount rate of 8%, we can calculate the present value of each cash flow as follows:
- The present value of $5,000 received today is $5,000.
- The present value of $3,000 received in one year is $3,000 / (1 + 0.08) = $2,777.78 (rounded to the nearest cent).
- The present value of $6,000 received in four years is $6,000 / (1 + 0.08)^4 = $4,344.10 (rounded to the nearest cent).
Now, we can sum up the present values of each cash flow to find the total present value of the cash flow stream:
$5,000 + $2,777.78 + $4,344.10 = $12,121.88
Therefore, the present value of the cash flow stream is approximately $12,121.88.
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essa derived a capital gain of $8,000 on the disposal of an active asset of her business on 20 March 2016. She elected in her 2016 tax return to use the replacement asset roll-over relief under Div 152 ITAA97. Tessa purchased an active replacement asset at a cost of \$40,000 on 4 July 2017. On 12 May 2020 she sold the replacement asset for $12,000 and will not acquire any further replacement assets. Which CGT event will apply in relation to the original capital gain of $8,000 when the replacement asset is sold and what is the capital gain or loss arising from that CGT event? a. CGT event J3 and a $8,000 gain b. CGT event A1 and a $4,000 loss. c. CGT event J2 and a nil gain or loss. d. CGT event A1 and a $4,000 gain. e. CGT event J2 and a $8,000 gain.
When Tessa elected to use the replacement asset roll-over relief under Division 152 of the Income Tax Assessment Act 1997 (ITAA97), it means that the capital gain of $8,000 from the disposal of the original active asset is disregarded for tax purposes at that time.
Upon selling the replacement asset for $12,000 on 12 May 2020, CGT event J2 will apply. CGT event J2 occurs when a replacement asset acquired under a roll-over relief is sold or otherwise disposed of. In this case, since the sale proceeds of the replacement asset ($12,000) are less than the cost of the replacement asset ($40,000), there is no capital gain or loss arising from CGT event J2. Therefore, the answer is CGT event J2 and a nil gain or loss.
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In Malaysia, it can be observed that the international convenient stores like Seven Eleven and Family Mart are competing with the local KK Marts and 99 Stores. Assume your family owned a convenience store, analyse the important factors that you would need to consider if you were to expand your family's business by franchising, using relevant examples.
Expanding a family-owned convenience store business through franchising requires careful consideration of several important factors. Here are some factors you would need to consider:
Branding and Differentiation: Evaluate your family's convenience store brand and its unique selling proposition (USP). Determine how you can differentiate your brand from international convenience stores like Seven Eleven and Family Mart, as well as local competitors like KK Marts and 99 Stores. Focus on offering a distinct customer experience, personalized services, or niche product offerings. For example, you could emphasize local or artisanal products, healthier snack options, or a focus on personalized customer service.
Market Analysis: Conduct a comprehensive market analysis to identify potential franchise locations. Consider factors such as population density, demographics, competition, foot traffic, and local consumer preferences. Analyze the performance and success of existing convenience stores in those areas to gauge market potential. For example, you might find that certain neighborhoods have a high demand for late-night snacks or specialty groceries, presenting an opportunity for your franchise.
Franchise Structure and Support: Develop a clear franchise structure and support system for potential franchisees. Determine the initial franchise fees, royalty fees, and ongoing support mechanisms you can offer. Provide training programs, operational manuals, and marketing support to ensure consistency across franchise locations. For instance, you can offer comprehensive training on inventory management, customer service, and store operations to help franchisees succeed.
Supply Chain Management: Establish reliable and efficient supply chain management systems to ensure consistent product availability for franchisees. Negotiate favorable contracts with suppliers to secure competitive pricing and maintain quality standards. Consider whether you can leverage local suppliers or unique product offerings to differentiate your franchise. For example, partnering with local farmers or suppliers could enhance your brand's sustainability and support for the community.
Brand Marketing and Promotion: Develop a robust marketing and promotion strategy to create awareness and attract customers to your franchise locations. Utilize various channels, including online and offline marketing, social media, targeted advertising, and loyalty programs. Emphasize the unique aspects of your brand and the benefits of supporting a local family-owned business. For instance, you can leverage social media platforms to showcase customer testimonials, highlight community involvement, and share exclusive offers.
Franchisee Selection and Support: Implement a thorough process for selecting franchisees who align with your brand values and have the necessary business acumen. Provide ongoing support and guidance to franchisees, including regular communication channels, performance monitoring, and assistance with troubleshooting. Building strong relationships with franchisees will help maintain consistency and drive success across your franchise network.
It's important to note that these factors are just a starting point, and additional considerations specific to your family's convenience store business and the local market should also be taken into account. Conducting market research, seeking professional advice, and developing a comprehensive business plan will further support your franchising efforts.
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Which feature allows formatting to be automatically added to new columns and rows? AutoFormat PivotTable conditional formatting Format as Table
The feature that allows formatting to be automatically added to new columns and rows is "Format as Table."
When you apply the "Format as Table" feature to a range of data in Excel, it automatically applies a predefined formatting style to the entire table, including any new columns or rows that are added. This helps maintain consistent formatting throughout the table and makes it easier to manage and analyze the data. Additionally, the "Format as Table" feature also enables other benefits such as automatic filtering and sorting options. So, by using "Format as Table," you can ensure that formatting is consistently applied to new columns and rows as you work with your data.
it automatically extends the formatting, including styles, colors, and formulas, to new columns or rows added within the table. This feature makes it convenient to maintain consistent formatting throughout your data and ensures that any new data added to the table follows the same formatting rules. It simplifies the process of managing and updating the appearance of your data as it grows or changes.
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You have started a company and are in luck-a venture capitalist has offered to invest. You own 100% of the company with 5.00 million shares. The VC offers $1.00 million for 800,000 new shares. a. What is the implied price per share? b. What is the post-money valuation? c. What fraction of the firm will you own after the investment? a. What is the implied price per share? The implied price per share will be $ 1.25 per share. (Round to the nearest cent.) b. What is the post-money valuation? The post-money valuation will be $7250.00 million. (Round to two decimal places.)
You will hold around 0.8621, or 86.21%, of the company after the investment.
a. To calculate the implied price per share, we divide the total investment amount by the number of new shares issued:
Implied Price per Share = Total Investment Amount / Number of New Shares
= $1,000,000 / 800,000
= $1.25
Therefore, the implied price per share is $1.25.
b. The post-money valuation is the value of the company after the investment has been made. To calculate it, we add the total investment amount to the pre-money valuation, which is the value of the company before the investment:
Post-Money Valuation = Pre-Money Valuation + Total Investment Amount
= ($1.25 * 5,000,000) + $1,000,000
= $6,250,000 + $1,000,000
= $7,250,000
Therefore, the post-money valuation is $7,250,000.
c. To determine the fraction of the firm you will own after the investment, we divide the number of shares you own by the total number of shares after the investment:
Fraction Owned = Number of Shares Owned / Total Number of Shares
= 5,000,000 / (5,000,000 + 800,000)
= 5,000,000 / 5,800,000
≈ 0.8621
Therefore, after the investment, you will own approximately 0.8621, or 86.21%, of the firm.
Note: The calculations involving division and rounding may result in slightly different values due to rounding methods.
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On January 1,2021 . Concord Inc. granted stock options to officers and key employees for the purchase of 22,000 shares of the company's $10 par common stock at $23 per share. The options were exercisable within a 5 -year period beginning January 1,2023 , by grantees still in the employ of the company, and expiring December 31,2027 . The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be $340,800. On April 1, 2022, 2,200 options were terminated when the employees resigned from the company. The market price of the common stock was $33 per share on this date. On March 31,2023,13,200 options were exercised when the market price of the common stock was $41 per share. Prepare journal entries to record issuance of the stock options, termination of the stock options, exercise of the stock options, and charges to compensation expense, for the years ended December 31, 2021,2022, and 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
These journal entries record the issuance, termination, and exercise of stock options, as well as the recognition of compensation expense associated with the stock option plan for the years 2021, 2022, and 2023.
Journal Entries for the Years Ended December 31, 2021, 2022, and 2023:
December 31, 2021: No entry is required as the options were granted but not yet exercisable or terminated.
April 1, 2022: No entry is required for the termination of options since the employees resigned and the options were not exercised.
March 31, 2023:
1. To record the exercise of stock options:
Stock Options (2,200 * $23) 50,600
Additional Paid-in Capital - Stock Options 50,600
2. To record the compensation expense for the year 2023:
Compensation Expense 157,200
Additional Paid-in Capital - Stock Options 157,200
Note: The total compensation expense of $340,800 is recognized over the service period of 2 years, so $170,400 is recognized each year.
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Explain the Equilibrium of the Market and how price is
determined? ‘your answers should not exceed 100 words
The equilibrium of the market is the state of the market where the supply of goods and services meets the demand for goods and services in such a way that prices remain stable over time.
The supply and demand forces of the market determine the equilibrium price. The price of the good or service is determined by the intersection of the demand curve and the supply curve.
At the intersection point, the quantity demanded is equal to the quantity supplied, and the price at which they are willing to trade is known as the equilibrium price.
If there is a shortage of the good, the price will increase to reach equilibrium. If there is a surplus, the price will decrease until equilibrium is reached.
In this way, market forces drive the price of goods and services to the point where supply meets demand.
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Suppose you have a restaurant of 350 seats. 3,217 is the amount
of expected guests for next Saturday. If your restaurant used a
cook to guest ratio of 1:112 how many cooks would you schedule?
Suppose you have a restaurant of 350 seats. 3,217 is the amount
of expected guests for next Saturday. If your restaurant used a
cook to guest ratio of 1:112 You would schedule 29 cooks for next Saturday.
The cook to guest ratio of 1:112 means that for every 112 guests, you would need 1 cook.
In this case, you have an expected number of guests of 3,217. To determine the number of cooks needed, you divide the number of guests by the cook to guest ratio:
Number of cooks = Number of guests / Cook to guest ratio
Number of cooks = 3,217 / 112
Number of cooks ≈ 28.73
Since you cannot have a fraction of a cook, it is necessary to round up to the nearest whole number. Therefore, you would schedule 29 cooks for next Saturday.
Rounding up ensures that you have enough staff to handle the expected number of guests. It's better to have slightly more cooks available to maintain efficient service and avoid any potential delays or quality issues in the kitchen.
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Boeing, an airplane manufacturer, uses a job order cost system. When Boeing requisitions raw materials for the production of a new airplane, the journal entry will include: A debit to Raw Material Inventory A credit to Raw Material Inventory A credit to Work in Process Inventory A credit to Manufacturing Overhead None of the above are correct
The correct answer is "A debit to Raw Material Inventory."
When Boeing requisitions raw materials for the production of a new airplane, they would increase their Raw Material Inventory account by debiting it. This reflects the fact that they are taking materials from their inventory to be used in the production process.
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In each of the following independent situations, decide whether the business organization should treat the person being paid as an employee and should withhold social security, Medicare, and employee income taxes from the payment made.
George Jacobs owns and operates a cigar shop as a sole proprietor. Jacobs withdraws $2,000 a week from the cigar shop.
Alicia Ankar is a court reporter. She has an office at the Metro Court Reporting Center but pays no rent. The manager of the center receives requests from attorneys for court reporters to take depositions at legal hearings. The manager then chooses a court reporter who best meets the needs of the client and contacts the court reporter chosen. The court reporter has the right to refuse to take on the job, and the court reporter controls his or her working hours and days. Clients make payments to the center, which deducts a 25 percent fee for providing facilities and rendering services to support the court reporter. The balance is paid to the court reporter. During the current month, the center collected fees of $40,000 for Ankar, deducted $10,000 for the center’s fee, and remitted the remainder to Ankar.
Ken, a registered nurse, has retired from full-time work. However, because of his experience and special skills, on each Monday, Wednesday, and Thursday he assists Dr. Grace Ann, a dermatologist. Ken is paid an hourly fee by Dr. Ann. During the current week, his hourly fees totaled $600.
After working several years as an editor for a trade magazine, Kate quit her job to stay at home with her two small children. Later, the magazine asked her to work in her home performing editorial work as needed. Kate is paid an hourly fee for the work she performs. In some cases, she goes to the company’s offices to pick up or return a manuscript. In other cases, the firm sends a manuscript to her, or she returns one by e-mail. During the current month, Kate’s hourly earnings totaled $1,200.
ILC carries on very little business activity. It merely holds land and certain assets. The board of directors has concluded that it needs no employees. It has decided instead to pay David John, one of the shareholders, a consulting fee of $24,000 per year to serve as president, secretary, and treasurer and to manage all the affairs of the company. John spends an average of one hour per week on the corporation’s business affairs. However, his fee is fixed regardless of how few or how many hours he works.
Analyze: What characteristics do the persons you identified as "employees" have in common?
In the situations described, the persons who should be treated as employees and have social security, Medicare, and employee income taxes withheld are George Jacobs, Ken (the registered nurse), and Kate (the editor working from home).
To determine whether an individual should be treated as an employee, several factors need to be considered, such as the level of control exercised by the employer, the degree of independence of the worker, and the nature of the working relationship. In the case of George Jacobs, although he owns and operates his cigar shop as a sole proprietor, his weekly withdrawal of $2,000 indicates that he is compensating himself as an employee. Therefore, he should have social security, Medicare, and employee income taxes withheld from his payment.
Similarly, Ken, who assists Dr. Grace Ann on specific days and is paid an hourly fee, should be treated as an employee. The fact that Ken is paid an hourly fee suggests an employer-employee relationship, and therefore social security, Medicare, and employee income taxes should be withheld. For Kate, who performs editorial work from home on an hourly fee basis, the company's control over her work and the ongoing nature of their relationship indicate an employment arrangement. Hence, social security, Medicare, and employee income taxes should be withheld from her earnings. The other situations described do not indicate an employer-employee relationship based on the information provided, and therefore social security, Medicare, and employee income taxes do not need to be withheld.
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Can hydro energy be stored? What about other renewables? Why does it matter?
What issues should you consider when designing a goal-sharing plan for a group of sales employees?
Several crucial factors should be taken into account when creating a goal-sharing strategy for a group of sales employees: Specific and Measurable Goals: SMART goals are those that are time-bound, measurable, attainable, relevant, and specific.
Employees can comprehend what is expected of them and how their performance will be assessed when there are clear objectives. Alignment with Company aims: The objectives established for sales personnel should be in line with the company's overarching aims. It guarantees that each person's efforts add to the company's overall success. Fairness and Equity: The goal-sharing plan needs to be created in a way that all employees find to be fair and equitable. To ensure that everyone has an equal chance of success, take into account variables like sales regions, product lines, and market conditions.
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In Alderferâ s ERG Theory, Relatedness Needs overlap with __________ needs of Maslow's Theory.
A>Physiological and Safety
B>Self-actualization and Esteem
C>Social and Security
D>Social and Esteem
In Alderfer's ERG Theory, Relatedness Needs overlap with Social and Esteem needs in Maslow's Hierarchy of Needs. The correct answer is D) Social and Esteem needs in Maslow's Theory.
Alderfer's ERG Theory is a modification of Maslow's Hierarchy of Needs, which categorizes human needs into three levels: Existence, Relatedness, and Growth. Relatedness Needs in Alderfer's theory refer to the need for interpersonal relationships, social interactions, and a sense of belonging. These needs overlap with Social and Esteem needs in Maslow's Theory.
Social needs in Maslow's Hierarchy encompass the desire for companionship, friendships, and a sense of belonging to a group or community. These needs involve the need for social interaction and connection with others, similar to the Relatedness Needs in Alderfer's ERG Theory. Both theories emphasize the importance of social relationships for human well-being.
Esteem needs in Maslow's theory involve the desire for recognition, respect, and self-worth. They encompass the need for a positive self-image and the desire to be valued and appreciated by others. This overlaps with the Relatedness Needs in Alderfer's theory because forming social connections and experiencing positive social interactions can contributes to an individual's self-esteem and sense of worth.
Therefore, the correct answer is D) Social and Esteem needs in Maslow's Theory.
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What do the authors have to say about Organizational Capacity to
change and strategic ambidexterity?
Organizational capacity to change refers to an organization's ability to successfully initiate and manage change initiatives.
The authors argue that a strong capacity for change is essential in today's dynamic and competitive business environment. They emphasize the importance of developing a culture of flexibility, adaptability, and learning within the organization. This involves fostering a mindset that embraces change as an opportunity rather than a threat and building the necessary capabilities to implement and sustain change.
Regarding strategic ambidexterity, the authors highlight its significance in achieving long-term organizational success. Strategic ambidexterity refers to an organization's ability to simultaneously exploit existing capabilities and explore new opportunities. The authors argue that organizations need to strike a balance between exploiting their current strengths and exploring new areas for growth and innovation. They emphasize that a lack of ambidexterity can lead to a focus on short-term gains at the expense of long-term viability.
The authors stress the need for organizations to proactively manage tensions and trade-offs between exploration and exploitation, such as establishing dedicated structures and processes to support both activities. They suggest that fostering a culture that encourages experimentation, risk-taking, and continuous learning is vital for achieving strategic ambidexterity. Ultimately, they argue that organizations that can effectively navigate change and cultivate strategic ambidexterity will be better equipped to thrive in complex and uncertain environments.
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