The company's diversity statement has been efficiently evaluated and has been written down in our own words including Johnson & Johnson,Target Inc, and L'Oréal.
Johnson & Johnson's diversity statement:-
“We believe diversity and inclusion (D&I) is an essential element in our vision of being the world’s premier healthcare company. Our commitment to Diversity & Inclusion and health equity has been ingrained in Our Credo, where we have pledged to respect the dignity of all employees and to embrace the differences in our collective workforce, which reflect the communities and patients we serve. We strive to create a culture of inclusion that is grounded in our Credo and fosters innovation, collaboration, and high performance.”
Johnson & Johnson’s Diversity statement evaluates their statement in your own words:-
Johnson & Johnson, a healthcare company, believes that diversity and inclusion (D&I) are critical elements of their goal of becoming the world’s premier healthcare provider. Johnson & Johnson has pledged to respect the dignity of its employees and embrace the differences in the collective workforce, which represents the communities and patients they serve. Johnson & Johnson aims to build an inclusive culture that is rooted in the Credo, encouraging innovation, teamwork, and high performance.
Target Inc.’s diversity statement:-
“At Target, diversity, equity, and inclusion are fundamental to who we are. We believe that no matter who you are, where you come from, or what your preferences, everyone should feel welcomed and valued. We know that diversity helps Target remain innovative, with diverse experiences, perspectives, and backgrounds fostering creativity and innovation that drives growth and strengthens our business. This is a fundamental part of how we continue to make Target an even better place to work, shop, and invest.”
Target Inc.'s Diversity statement evaluated in your own words:-
Target Inc believes that diversity, equity, and inclusion are at the heart of who they are as a company. Target Inc has a strong belief that everyone, regardless of who they are, where they come from, or what their preferences are, should feel welcome and valued.
Target recognizes that diversity contributes to its innovative mindset, and diverse experiences, perspectives, and backgrounds promote creativity and innovation that boosts growth and enhances its business. Target is committed to making the company an even better place to work, shop, and invest.
L'Oréal's diversity statement:-
“At L'Oréal, we believe that beauty belongs to all of us. Our products, and our teams, reflect the diversity of the world and the clients we serve. Our passion for what we do is driven by the belief that we can inspire and empower every person to express who they truly are. As a company that celebrates differences, we foster an inclusive environment where everyone can thrive, where their uniqueness is taken into account, and where their voices are heard.”
L'Oréal's Diversity statement evaluated in your own words:-
L'Oréal, a beauty product manufacturer, thinks that beauty belongs to everyone. Their products and teams reflect the diversity of the world and the clients they serve. L'Oréal is passionate about what they do, believing that they can inspire and empower people to be true to themselves. L'Oréal creates an inclusive environment where everyone can succeed, their uniqueness is appreciated, and their opinions are valued.
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The Inventory analysis and assessment has been completed and the results indicate there is problem inventory identified. What can be done now to get rid of this identified problem inventory?
To get rid of the identified problem inventory, you can consider implementing the following measures:
1. Offer discounts or promotions to incentivize customers to purchase the problem inventory.
2. Explore partnerships or collaborations to redistribute the inventory to other businesses or markets.
3. Repurpose or modify the inventory to meet alternative needs or specifications.
4. Liquidate the inventory through clearance sales or auctions.
1. Offering discounts or promotions can help stimulate demand for the problem inventory and encourage customers to make purchases. By reducing the price, you can attract buyers who may have been hesitant before due to the inventory's issues.
2. Exploring partnerships or collaborations can enable you to redistribute the inventory to other businesses or markets. This can involve negotiating agreements with retailers, wholesalers, or online platforms to sell the inventory on your behalf.
3. Repurposing or modifying the inventory allows you to transform it into a different product that may have a higher demand or better market fit. This could involve making alterations, adding features, or repackaging the items to appeal to a different customer segment.
4. Liquidating the inventory through clearance sales or auctions can help you quickly sell the problem inventory at reduced prices. This approach may attract bargain hunters and allow you to recover some of the inventory's value.
By implementing these strategies, you can mitigate the impact of problem inventory and potentially recover some of its value. However, the specific approach will depend on factors such as the nature of the inventory, market conditions, and available resources.
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bayko wants to maintain its leverage at 76%. its equity cost is 12%, its debt cost is 7%. Its tax rate is 25% and its market capitalization is EUR 220 million. The expected free cash flow is 10 million euros next year. What is the present value of the tax savings realized ?
The present value of the tax savings realized by Bayko is approximately EUR 0.04945 million.
To calculate the present value of the tax savings realized by Bayko, we need to determine the tax shield provided by the interest expense on the company's debt.
- Leverage target: 76%
- Equity cost: 12%
- Debt cost: 7%
- Tax rate: 25%
- Market capitalization: EUR 220 million
- Expected free cash flow: EUR 10 million
First, let's calculate the debt-to-equity ratio based on the desired leverage target:
Debt-to-Equity Ratio = Leverage / (1 - Leverage)
Debt-to-Equity Ratio = 0.76 / (1 - 0.76) = 3.17
Now, let's calculate the interest expense on the debt:
Interest Expense = Debt-to-Equity Ratio * Debt Cost
Interest Expense = 3.17 * 0.07 = 0.2219
Next, we can calculate the tax savings realized:
Tax Savings = Interest Expense * Tax Rate
Tax Savings = 0.2219 * 0.25 = 0.055475
Since the tax savings are expected to be realized in the next year, we need to calculate the present value of these savings. Assuming a discount rate of 12% (equity cost), we can use the following formula:
Present Value = Tax Savings / (1 + Discount Rate)
Present Value = 0.055475 / (1 + 0.12) = 0.04945
Therefore, the present value of the tax savings realized by Bayko is approximately **EUR 0.04945 million**.
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Describe a time when the Power (influence) attribute was demonstrated/used on you by a leader (your example can come from in or outside your workplace). State the scenario and the reason why that leader used the Power (influence) attribute. How effective were they in using this attribute and were they successful in what they were trying to accomplish? Placing yourself in that leader's shoes, what do you think your leader could have done differently? How else could you have used this attribute to accomplish that same specific goal
Scenario: Imagine you work in a marketing team at a company, and your leader wants to implement a new marketing strategy to boost sales. They believe that creating a sense of urgency and excitement among the team members will drive them to achieve the desired results.
The leader decides to use their power and influence in the following ways:
Clear Communication: The leader holds a team meeting to communicate the importance of the new strategy and the potential impact it can have on the company's growth. Leading by Example: The leader actively participates in the strategy, taking ownership of tasks, and demonstrating their commitment to its success. They work alongside the team, showing dedication and setting a positive example.Offering Incentives: The leader introduces performance-based incentives, such as bonuses or recognition, to motivate team members.Effectiveness and Success:
The leader's approach proves effective as team members are motivated by the sense of urgency, incentives, and support provided. The team collaborates more closely, remains focused on the strategy, and strives to achieve the desired results.
What the Leader Could Have Done Differently:
To improve their approach, the leader could consider the following:
Seeking Input: The leader could have encouraged team members to share their ideas and suggestions regarding the new strategy. By involving them in the decision-making process.Providing Context: The leader could have shared the reasoning behind the new strategy, explaining how it aligns with the company's long-term goals and benefits the team members individually.for similar questions on leader.
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A company currently pays a dividend of $1.6 per share (D0 = $1.6). It is estimated that the company's dividend will grow at a rate of 21% per year for the next 2 years, and then at a constant rate of 5% thereafter. The company's stock has a beta of 1.7, the risk-free rate is 9%, and the market risk premium is 6%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent.
If the company's stock has a beta of 1.7, the risk-free rate is 9%, and the market risk premium is 6%. The estimated current price of the stock is $14.67 (rounded to the nearest cent).
Current dividend (D0) = $1.6
Growth rate for the first two years (g1 and g2) = 21% per year
Constant rate of growth after 2 years (g) = 5%
Beta of the stock (β) = 1.7
Risk-free rate (Rf) = 9%
Market risk premium (Rm – Rf) = 6%
Let us calculate the cost of equity of the stock using the CAPM model:
COST OF EQUITY = Rf + β(Rm – Rf)= 9% + 1.7(6%)= 9% + 10.2%= 19.2%
Therefore, the cost of equity of the stock is 19.2%. Let us now calculate the estimated dividend for the next two years.
D1 = D0 (1 + g1) = $1.6 (1 + 0.21) = $1.936D2 = D1 (1 + g2) = $1.936 (1 + 0.21) = $2.3456
Let us now calculate the estimated price of the stock after 2 years.
P2 = D3 / (ke – g)D3 = D2 (1 + g) = $2.3456 (1 + 0.05) = $2.4638
P2 = $2.4638 / (0.192 – 0.05) = $16.8353
Finally, let us calculate the estimated current price of the stock using the dividend discount model (DDM).
P0 = (D1 / (1 + ke)) + (D2 / (1 + ke)2) + (P2 / (1 + ke)2)
P0 = ($1.936 / (1 + 0.192)) + ($2.3456 / (1 + 0.192)2) + ($16.8353 / (1 + 0.192)2)
P0 = $1.6281 + $1.7912 + $11.2547
P0 = $14.674
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[The following information applies to the questions displayed below.]
Simon Company's year-end balance sheets follow.
At December 31 Current Year 1 Year Ago 2 Years Ago
Assets Cash $ 32,657 $ 37,410 $ 38,976
Accounts receivable, net 94,650 64,799 50,929
Merchandise inventory 116,625 90,041 56,464
Prepaid expenses 10,727 9,920 4,417
Plant assets, net 298,851 274,994 242,914
Total assets $ 553,510 $ 477,164 $ 393,700
Liabilities and Equity Accounts payable $ 140,580 $ 79,028 $ 53,527
Long-term notes payable 106,141 109,748 86,138
Common stock, $10 par value 162,500 162,500 163,500
Retained earnings 144,289 125,888 90,535
Total liabilities and equity $ 553,510 $ 477,164 $ 393,700
The company’s income statements for the current year and 1 year ago, follow.
For Year Ended December 31 Current Year 1 Year Ago
Sales $ 719,563 $ 567,825
Cost of goods sold $ 438,933 $ 369,086 Other operating expenses 223,065 143,660 Interest expense 12,233 13,060 Income tax expense 9,354 8,517 Total costs and expenses 683,585 534,323
Net income $ 35,978 $ 33,502
Earnings per share $ 2.21 $ 2.06
For both the Current Year and 1 Year Ago, compute the following ratios:
(1-a) Profit margin ratio.
(1-b) Did profit margin improve or worsen in the Current Year versus 1 Year Ago?
(2) Total asset turnover.
(3-a) Return on total assets.
(3-b) Based on return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago?
From 7.02% to 6.50%, the return on total assets declined. The business's operational effectiveness has declined.
Solution:(1-a) Profit margin ratio
Profit margin ratio = Net Income / Sales
For the Current Year, the Profit margin ratio = $ 35,978 / $ 719,563= 4.99%
For 1 Year Ago, the Profit margin ratio = $ 33,502 / $ 567,825= 5.90%(1-b)
Did the profit margin improve or worsen in the Current Year versus 1 Year Ago?The profit margin decreased from 5.90% to 4.99%.
(2) Total asset turnover
Total asset turnover = Sales / Total Assets
For Current Year, Total asset turnover = $ 719,563 / $ 553,510= 1.30 times
For 1 Year Ago, Total asset turnover = $ 567,825 / $ 477,164= 1.19 times
(3-a) Return on total assets
Return on total assets = Net Income / Total Assets
For the Current Year, the Return on total assets = $ 35,978 / $ 553,510= 6.50%
For 1 Year Ago, the Return on total assets = $ 33,502 / $ 477,164= 7.02%
(3-b) Based on the return on total assets, did Simon's operating efficiency improve or worsen in the Current Year versus 1 Year Ago?The Return on total assets decreased from 7.02% to 6.50%. The company's operating efficiency has worsened.
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Big Lake Company has provided the following long-term assets from its most recent statement of financial position:
Land $1,120,000
Building $365,000
Accumulated depreciation – building ($200,000)
Equipment $520,000
Accumulated depreciation – equipment ($275,000)
Total property, plant, and equipment $1,530,000
During the current period Big Lake Company sold land and equipment to Small Lake Company for a lump sum amount of $625,000. Assuming that the equipment sold was the only equipment carried by Big Lake and the historical cost of the land is $220,000, what is the total gain or loss from this sale?
a.loss of $120,000
b.gain of $185,000
c.gain of $160,000
d.loss of $275,000
The answer is c. gain of $160,000. During the current period, Big Lake Company sold land and equipment to Small Lake Company for a lump sum amount of $625,000.
Assuming that the equipment sold was the only equipment carried by Big Lake and the historical cost of the land is $220,000, the total gain or loss from this sale is a gain of $160,000. When Big Lake sold land and equipment to Small Lake for $625,000, there was a gain or loss on the sale. To determine the gain or loss, we need to know the historical cost and accumulated depreciation of the assets sold. Here are the details:1. The cost of the equipment sold is $520,000.2. The accumulated depreciation of the equipment sold is $275,000.3. The historical cost of the land sold is $220,000.
Therefore, the total book value of the assets sold is: Book value of equipment sold = cost - accumulated depreciation= $520,000 - $275,000 = $245,000 Book value of land sold = historical cost = $220,000 Total book value of assets sold = $245,000 + $220,000 = $465,000 The lump sum received for the sale was $625,000. Therefore, the gain on the sale was:Gain on sale = selling price - book value= $625,000 - $465,000 = $160,000 The answer is c. gain of $160,000.
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Commerce Ltd manufactures and sells monitors and uses standard costing. For the month of April there was no beginning inventory, there were 3,200 units produced and 2,500 units sold. The manufacturing variable cost per unit is $325 and the variable operating cost per unit was $312.50. The actual and fixed manufacturing cost is $420,000 and the fixed operating cost is $85,000. The selling price per unit is $900. The budgeted units to be produced are 2,800. There are no price-, efficiency-, or spending variances. Any production- volume variance is written off to cost of goods sold in the month in which it occurs.
Required:
a. Using the perpetual method, prepare the income statement for Commerce Ltd for April under variable and absorption costing.
To prepare the income statement for Commerce Ltd for April under variable and absorption costing using the perpetual method, follow these steps:
1. Calculate the total manufacturing variable cost:
Total manufacturing variable cost = Manufacturing variable cost per unit x Units produced
Total manufacturing variable cost = [tex]$325 x 3,200 = $1,040,000[/tex]
2. Calculate the total variable operating cost:
Total variable operating cost = Variable operating cost per unit x Units sold
Total variable operating cost = $312.50 x 2,500 = $781,250
3. Calculate the total manufacturing cost:
Total manufacturing cost = Total manufacturing variable cost + Actual fixed manufacturing cost
Total manufacturing cost =[tex]$1,040,000 + $420,000 = $1,460,000[/tex]
4. Calculate the total operating cost:
Total operating cost = Total variable operating cost + Fixed operating cost
Total operating cost =[tex]$781,250 + $85,000 = $866,250[/tex]
5. Calculate the cost of goods sold under variable costing:
Cost of goods sold = Total manufacturing variable cost + Total variable operating cost
Cost of goods sold = [tex]$1,040,000 + $781,250 = $1,821,250[/tex]
Therefore, the income statement for Commerce Ltd for April under variable and absorption costing using the perpetual method would show a loss of $437,500 under variable costing and a loss of $76,250 under absorption costing.
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Based on the resources provided or your research, share ways entrepreneurs and small businesses are using Pinterest and hashtags to promote themselves. Provide at least one example of a small organization’s Pinterest marketing campaign with hashtags. (Research Support Required)
Entrepreneurs and small businesses use Pinterest to promote themselves by creating visually appealing boards, using relevant hashtags, and engaging with their audience.
For example, a small organic skincare company may create a Pinterest campaign using hashtags like #naturalskincare and #organicskincare to reach potential customers interested in eco-friendly beauty products. Pinterest allows entrepreneurs and small businesses to showcase their products or services through visually appealing boards. By using relevant hashtags in their pin descriptions, they can increase the visibility of their content and attract users searching for specific topics. Engaging with the Pinterest community through commenting, sharing, and collaborating on group boards can further promote their brand and build a loyal following. For instance, a small organic skincare company might create a Pinterest campaign featuring their products and incorporate hashtags like #naturalskincare and #organicskincare to target users interested in eco-friendly beauty products.
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Press the question buttons in the right menu,
A multiple-choice question with one possible answer.
1. Which one is NOT relating to the communication theory as per class 1? (Required)
1.Communication is a process.
2.O Communication is necessary to be a one-way presentation.
3.O Communication is interactive by nature.
4. O It comprises with continuous meaning presentations, negotiations, and more.
1. Which one is NOT relating to the communication theory as per class 1?Communication is a process.Communication is necessary to be a one-way presentation.
Communication is interactive by nature.It comprises continuous meaning presentations, negotiations, and more.Correct Answer: 2. Communication is necessary to be a one-way presentation.
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For the year just ended, ThruCast Corp. had pretax earnings from operations of $1.25 million. In addition, it received $110,000 in interest income from bonds it held in XrayTech and it received $65,000 in dividend income from its 8\% common stock holding in Books-R-Us Corp. What is the total tax liability for ThruCast Corp. for the year? $299,114 $239,400$292,425 $262,500
Thru Cast Corp. had pretax earnings from operations of 1.25 million. In addition, it received 110,000 in interest income from bonds it held in Xray Tech and it received 65,000 in dividend income from its 8% common stock holding in Books-R-Us Corp.
Total Tax Liability for Thru Cast Corp. can be calculated by using the below formula
Total Tax Liability = [(Earnings from operations + Interest income + Dividend Income) × Tax Rate]For the current financial year, the tax rate is 24%.
Total Tax Liability = [(1,250,000 + 110,000 + 65,000) × 24%]
= (1,425,000 × 0.24)
= 342,000
Total Tax Liability for Thru Cast Corp. is 342,000.
However, the question asks for the net tax liability, which means it is the difference between the total tax liability and the tax credit. The following steps should be followed to find out the net tax liability
Total Tax Liability = 342,000
Tax Credit = (45% of 65,000) + (70% of 110,000)
= 29,250 + 77,000
= 106,250
Net Tax Liability = Total Tax Liability - Tax Credit
= 342,000 - 106,250
= 235,750
The Net Tax Liability for Thru Cast Corp. for the year is 235,750.
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Question 4 4.1. Discuss the 5 basic process types and their examples. Production a b Question 5 5.1. Producing widgets involves fourteen production tasks, lettered a through n, below. For each task, the time required to accomplish it is given, and the immediately preceding task. 16 15. x-Ec m n Time (min.) 4 .5 4 1.0 .5 1.1 UNISA .7 .8 4 1.2 1842964 Preceding CRUNCIO a e d, f (20) k 1 j, m [20] (19) The manager expects to produce 300 widgets per eight-hour shift. The workers are allowed two 10-minute coffee breaks per shift, and 40 minutes is allocated to cleanup and maintenance tasks. a. Is it possible to accomplish the objective of 300 widgets per shift with only one workstation? (1) b. What is the maximum possible output with 14 workstations (one workstation devoted to each task)? (1) (13) c. Draw the precedence diagram for this process. d. What is the theoretical minimum number of workstations which will be required to achieve an output of 300 pieces per shift?
With only one workstation, it is not possible to produce 300 widgets per shift. The maximum possible output with 14 workstations is 276 widgets per shift. The theoretical minimum number of workstations required to achieve an output of 300 widgets per shift is 13.
The total time available in an eight-hour shift is 480 minutes. After subtracting the time for coffee breaks and cleanup, the total time available for production is 400 minutes. The longest task in the process is task n, which takes 12 minutes. Therefore, the minimum number of workstations required to produce 300 widgets per shift is 12.
If we use 14 workstations, each workstation will be able to complete one task per cycle. The total time required for one cycle is 42 minutes. Therefore, the maximum possible output with 14 workstations is 276 widgets per shift.
To achieve an output of 300 widgets per shift, we need to reduce the cycle time to 36 minutes. This can be done by using 13 workstations. With 13 workstations, each workstation will be able to complete two tasks per cycle. The total time required for one cycle is 36 minutes.
The precedence diagram for this process is as below.
```
a --> e
e --> d, f
d --> k
f --> k
k --> j, m
j --> n
m --> n
```
The arrows in the diagram represent the precedence relationships between tasks. For example, task e must be completed before tasks d and f can be started.
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How would directing contribute to failure or success of an organization (consider Directing principles, importance and process) (20marks)
Effective directing plays a crucial role in the success or failure of an organization by guiding and aligning the efforts of individuals toward achieving organizational goals.
How does directing impact the success or failure of an organization?Directing encompasses the principles, importance, and process of guiding individuals within an organization to perform their tasks effectively and contribute towards the overall success.
By providing clear direction, setting goals, and delegating authority, directing helps establish a unified and motivated workforce. It ensures that employees understand their roles, responsibilities, and the expectations placed upon them.
Effective directing facilitates coordination and cooperation among team members, promotes a positive work culture, and enhances communication channels within the organization.
It enables efficient utilization of resources, maximizes productivity, and improves overall organizational performance.
Additionally, directing helps identify and address performance gaps, provides guidance and support to employees, and fosters a sense of accountability and ownership.
However, if directing is not carried out effectively, it can lead to negative consequences for the organization.
Poor direction can result in confusion, lack of clarity, and misalignment of efforts.
This can lead to decreased productivity, inefficiencies, and conflicts within the organization.
Inadequate communication, unclear goals, and inconsistent decision-making can hamper the organization's ability to adapt to changes and capitalize on opportunities, ultimately leading to failure.
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Mining shares currently provide an expected rate of return of 16%. BHP, a large metal and mining company will pay a year-end dividend of $2 per share. i. If the stock is selling at $50 per share, what must be the market's expectation of the growth rate of BHP dividends? (1 marks) ii. If dividend growth forecasts for BHP are revised downward to 5% per year, what will happen to the price of BHP stock? (1 mark) iii. What will happen to the company's price- earnings ratio? (1 mark) have to contear lavt Click or tap here to enter text. Click or tap here to enter text.
The market expects a 12% growth rate for BHP dividends. A downward revision in dividend growth forecasts may lead to a decline in the price of BHP stock. The company's price-earnings ratio (P/E ratio) may decrease as a result of the changes in dividend growth forecasts and stock price.
I. To determine the market's expectation of the growth rate of BHP dividends, we can use the dividend discount model (DDM) formula:
Stock Price = Dividend / (Expected Rate of Return - Dividend Growth Rate)
Given that the stock price is $50 and the dividend is $2 per share, and the expected rate of return is 16%, we can rearrange the formula to solve for the dividend growth rate:
$50 = $2 / (0.16 - Dividend Growth Rate)
Dividend Growth Rate = (0.16 - 2/50) ≈ 0.12 or 12%
Therefore, the market's expectation of the growth rate of BHP dividends is approximately 12%.
ii. If dividend growth forecasts for BHP are revised downward to 5% per year, it indicates a decrease in the expected future growth of BHP dividends. According to the dividend discount model, a decrease in the dividend growth rate will lead to a decrease in the price of the stock. Therefore, the price of BHP stock is expected to decline.
iii. The price-earnings ratio (P/E ratio) is a measure of a company's valuation in relation to its earnings. It is calculated by dividing the stock price by the earnings per share (EPS). If the price of BHP stock decreases due to revised downward dividend growth forecasts, while the company's earnings remain the same, the P/E ratio will decrease.
This means that investors are willing to pay less for each dollar of earnings, reflecting a potentially lower valuation for the company.
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Using a Comparative Balance Sheet and a current Income Statement, prepare a Statement of Cash Flows using the Direct and Indirect Methods.
BUS132 Cash Flow
Cory Tequila Company
Balance Sheet
December 31, 2021 and 2020
2021 2020
Assets
Cash $827,000 $580,000
Accounts Receivable $1,242,000 $1,303,000
Inventories $652,000 $362,000
Prepaid Operating Expenses $168,000 $67,000
Land $1,080,000 $580,000
Equipment $801,000 $599,000
Accumulated Depr-Equipment ($120,000) ($80,000)
Total Assets $4,650,000 $3,411,000
Liabilities
Accounts Payable $361,000 $250,000
Salaries Payable $628,000 $592,000
Income Tax Payable $630,000 $411,000
Note Payable $500,000 $0
Total Liabilities $2,119,000 $1,253,000
Stockholders Equity
Common Stock $500,000 $275,000
Paid in Capital in Excess of Par $1,525,000 $1,350,000
Retained Earnings $506,000 $533,000
Total Stockholders Equity $2,531,000 $2,158,000
Total Liabilities & Stockholders Equity $4,650,000 $3,411,000
Cory Tequila Company
Income Statement
Year Ended December 31, 2021
Sales $8,154,000
Cost of Goods Sold $4,240,000
Gross Profit $3,914,000
Operating Expenses:
Depreciation Expense $40,000
Salaries Expense $990,000
Other Operating Expenses $889,000
Total Operating Expenses $1,919,000
Net Income Before Taxes $1,995,000
Income Tax Expense $798,000
Net Income $1,197,000
Additional Information
Acquisition of Land was financed with a Long-Term Note Payable
Equipment was Purchased for $202,000
Common Stock was issued for Cash
$1,224,000 in Cash Dividends were paid
Required:
Prepare the Statement of Cash Flows Using the Direct Method and Indirect Method
ear Ended December 31, 2021
Cash Flows from Operating Activities:
Cash Collected from Customers
Cash Payments
Total Cash Payments
Cash Flows from Operating Activities
Cash Flows From Investing Activities:
Purchased Equipment
Cash Flows From Investing Activities
Cash Flows From Financing Activities:
Sale of Common Stock
Paid Dividends
Cash Flows From Financing Activities
Net Increase in Cash
Beginning Cash 580,000
Ending Cash
Cory Tequila Company
Statement of Cash Flows-Indirect Method
Year Ended December 31, 2021
Cash Flows from Operating Activities:
Net Income $1,197,000
Adjustments to Net Income
Depreciation
Net Decrease in Receivables
Net Increase in Inventory
Net Increase in Prepaid Expenses
Net Increase in Accounts Payable
Net Increase in Salaries Payable
Net Increase in Taxes Payable
Total Adjustments
Net Cash Flows Provided by Operating Activities
Statement of Cash Flows - Direct Method: Cash Flows from Operating
Activities : Cash collected from customersCash payments to suppliersCash payments for operating expensesNet cash flows provided by operating activitiesCash Flows from Investing Activities:Cash paid for the purchase of equipmentNet cash flows used in investing activitiesCash Flows from Financing Activities:Cash received from the sale of common stockCash paid for dividendsNet cash flows used in financing activitiesNet increase in cashBeginning cash balanceEnding cash balanceThe statement of cash flows using the direct method starts with cash collected from customers and subtracts cash payments to suppliers and for operating expenses to determine the net cash flows provided by operating activities. The cash flows from investing activities show the cash paid for the purchase of equipment. The cash flows from financing activities include cash received from the sale of common stock and cash paid for dividends. The net increase in cash is added to the beginning cash balance to obtain the ending cash balance.
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estimate the percent of apartment residents who pay more than $700 per month
The estimated percentage of apartment residents who pay more than $700 per month is 30%.
To estimate the percent of apartment residents who pay more than $700 per month, the following steps need to be followed:
Step 1: Determine the number of residents who pay more than $700 per month
Step 2: Divide the number of residents who pay more than $700 per month by the total number of residents
Step 3: Multiply the result by 100 to get the percentage of residents who pay more than $700 per month.
For example, if there are 1000 apartment residents and 300 of them pay more than $700 per month, then:
Step 1: Number of residents who pay more than $700 per month = 300
Step 2: Percentage of residents who pay more than $700 per month = 300/1000 = 0.3
Step 3: Percentage of residents who pay more than $700 per month = 0.3 x 100 = 30%
.Therefore, the estimated percentage of apartment residents who pay more than $700 per month is 30%.
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Discuss the pros and cons of the ethical concept of
utilitarianism.
Utilitarianism is an ethical concept that suggests actions should be evaluated based on their ability to maximize happiness or pleasure for the greatest number of people.
However, like any ethical concept, utilitarianism has its pros and cons, which are discussed below:
Pros of utilitarianism
Utilitarianism is impartial: Utilitarianism offers impartiality in its decision making, as it does not discriminate on the basis of race, gender, or any other identifying factor. This impartiality ensures that everyone is treated equally, which can promote social harmony.
Maximizes social welfare: Utilitarianism aims to maximize social welfare, and this is a significant advantage. By focusing on social welfare, utilitarianism promotes actions that benefit everyone and contribute to societal progress.
Ease of use: Utilitarianism is easy to use since it involves making decisions based on what will bring the greatest happiness to the greatest number of people. This simplicity can be useful in situations where time is of the essence.
Cons of utilitarianism
Subjectivity: Utilitarianism is subjective, meaning that different people may have different opinions on what is considered happiness or pleasure. This subjectivity makes it difficult to measure the happiness or pleasure that a given action will produce.
Lack of concern for minorities: Utilitarianism does not adequately address the needs of minorities, as it tends to prioritize the majority. This lack of concern for minorities can lead to discrimination and oppression.
Overlooks individual rights: Utilitarianism overlooks individual rights and liberties, which can lead to the exploitation of vulnerable people. This disregard for individual rights can also result in the violation of fundamental human rights.
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Payback Period and NPV of a Cost Reduction Proposal—Differential Analysis
Hermione decided to purchase a new automobile. Being concerned about environmental issues, she is
leaning toward the hybrid rather than the gasoline only model. Nevertheless, as a new business school
graduate, she wants to determine if there is an economic justification for purchasing the hybrid, which
costs $1,595 more than the regular model. She has determined that city/highway combined gas mile-
age of the hybrid and regular models are 30 and 24 miles per gallon respectively. Hermione anticipates
she will travel an average of 12,000 miles per year for the next several years.
Payback period and NPV of a Cost Reduction Proposal-Differential Analysis
Hermione has determined that city/highway combined gas mileage of the hybrid and regular models are 30 and 24 miles per gallon respectively. She has decided to purchase a hybrid vehicle but wants to know if there is an economic justification for it since the hybrid is $1,595 more expensive than the gasoline model. She is planning to travel an average of 12,000 miles per year for several years to come.
There are various ways of evaluating the financial worthiness of an investment, and two of them are the payback period and net present value (NPV).
Payback period refers to the time it takes for the business to recuperate the initial investment. The formula is:Payback period = Cost of investment / Annual cash inflows
Based on Hermione's situation, the incremental cost of a hybrid vehicle is $1,595. If we assume a petrol car's annual fuel consumption is
12,000 miles / 24 miles per gallon = 500 gallons, while a hybrid car's fuel consumption is 12,000 miles / 30 miles per gallon = 400 gallons.
Therefore, the hybrid car saves 500 - 400 = 100 gallons of petrol per year. If we assume the price of petrol is $3 per gallon, the hybrid car saves $300 per year.
Payback period = Cost of investment / Annual cash inflows
= $1,595 / $300= 5.32 years
Therefore, the payback period of the hybrid vehicle would be 5.32 years.NPV determines the current value of future cash inflows that the investment will produce. When evaluating a proposal, positive NPV means that the investment is economically justified, while negative NPV means that the investment is not economically justified.
The formula is: NPV = Present value of cash inflows - Initial investment + Annual cash inflows / Discount rate
= PV of $300 per year for 5 years at a 5% discount rate - $1,595= $1,259.85 - $1,595= -$335.15
Based on this calculation, the investment in a hybrid vehicle has a negative NPV, and, therefore, it is not economically justified.
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What is liquidity? How is your personal cash flow statement used to help manage your liquidity? How does money management relate to the cash flow statement?
Liquidity refers to the ease with which an asset or investment can be converted into cash without significant loss in value. It represents the ability to meet short-term financial obligations promptly.
Liquidity refers to the ease with which an asset or investment can be converted into cash without significant loss in value. It represents the ability to meet short-term financial obligations promptly. A personal cash flow statement helps manage liquidity by providing a snapshot of an individual's income and expenses over a specific period. By tracking income sources and categorizing expenses, one can identify surplus or deficit in cash flow, allowing for better financial planning and decision-making. Money management relates to the cash flow statement as it involves strategies to optimize the allocation of funds, such as budgeting, saving, investing, and managing debt, all of which impact cash flow and liquidity.
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explain how big data can help the company in customer
acquisition . ( Customer Relationship Management subject )
Big data empowers companies with valuable insights and actionable information to enhance customer acquisition efforts.
Big data can play a significant role in customer acquisition for a company within the realm of Customer Relationship Management (CRM). Here are several ways in which big data can assist in customer acquisition: Enhanced Customer Profiling: Big data analytics allows companies to gather and analyze vast amounts of customer data from multiple sources, such as transaction records, online interactions, social media, and demographic information. By leveraging this data, companies can create detailed customer profiles and understand their preferences, behaviors, and buying patterns. This enables more targeted and personalized marketing campaigns to acquire new customers. Improved Targeting and Segmentation: Big data enables companies to segment their customer base more effectively. By analyzing customer data, companies can identify specific customer segments with higher potential for acquisition. They can then tailor their marketing strategies and messages to target those segments with relevant offers and promotions, increasing the chances of customer acquisition. Predictive Analytics: Big data analytics can utilize predictive models to forecast customer behavior and identify potential customers who are likely to convert. By analyzing historical customer data, companies can identify patterns and trends that indicate the likelihood of a customer becoming a new customer. This enables proactive targeting of individuals with a higher probability of conversion, streamlining the customer acquisition process. Real-Time Data Insights: With big data analytics, companies can gain real-time insights into customer behavior and preferences. By monitoring customer interactions, online activities, and social media conversations, companies can quickly identify potential customers showing interest in their products or services. This allows for timely and personalized engagement, improving the chances of converting those prospects into customers. Data-Driven Marketing Campaigns: Big data analytics enables companies to optimize their marketing campaigns by leveraging data insights. By analyzing customer responses and campaign performance metrics, companies can identify which marketing channels, messages, and strategies are most effective in acquiring new customers. This data-driven approach allows for continuous optimization and improvement of customer acquisition efforts.
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Zach lends his brother, Quentin, $1,000. Quentin and Amy agree that Quentin will build a new pool deck for Amy in exchange for Amy paying Zach $1,000. Quentin builds the pool deck, but Amy refuses to pay Zach any money. Can Zach sue for payment? o Yes, because Zach is a creditor beneficiary. o No, because Zach was not a party to the contract. o Yes, because Zach is a creditor donee beneficiary. o No, because Zach is an incidental beneficiary. o No, because Zach did not build the pool deck.
Zach is a creditor beneficiary in this scenario because he lent money to Quentin with the expectation that Amy will pay him back through Quentin's services. Therefore, Zach can sue for payment from Amy. The correct answer is: Yes, because Zach is a creditor beneficiary.
In this scenario, Zach is a creditor beneficiary because he lent money to Quentin and expected repayment through Quentin's services to Amy. The pool deck construction was part of the consideration for the loan, and Amy agreed to pay Zach $1,000 in exchange for those services. Therefore, Zach has a legal right to enforce the contract and sue Amy for payment as a third-party beneficiary.
As a creditor beneficiary, Zach's right to recover payment from Amy is contingent on Quentin's fulfillment of his obligations under the contract. If Quentin fails to complete the pool deck or breaches the contract in some other way, Zach may not be able to recover payment from Amy. However, assuming that Quentin performed according to the terms of the agreement, Zach has a valid claim against Amy and can pursue legal action to collect the money owed to him.
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Production has indicated that they can produce widgets at a cost of $7.00 each if they lease new equipment at a cost of $17,500. Marketing has estimated the number of units they can sell at a number of prices (shown below). Which of the below is the price and volume option will allow the firm to avoid losing money on this project? 4,300 units at $11.00 each.
1,500 units at $18.50 each.
1,900 units at $16.00 each.
1,200 units at $21.00 each.
2,700 units at $13.50 each.
The price and volume option that will allow the firm to avoid losing money on this project is 4,300 units at $11.00 each. This can be determined by calculating the total revenue and total cost at each price level and determining which price level results in a profit for the company.
The fixed cost of leasing the new equipment is $17,500 and the variable cost of production is $7 per widget. Thus, the total cost of production is $7X, where X is the number of widgets produced.Using the given information, the total revenue can be calculated for each price level as follows:4,300 units at $11.00 each: $47,3001,500 units at $18.50 each: $27,7501,900 units at $16.00 each: $30,4001,200 units at $21.00 each.
$25,2002,700 units at $13.50 each: $36,450The total cost of production at 4,300 units is 4,300 x $7 = $30,100. Subtracting the total cost from the total revenue, we get a profit of $17,200. Therefore, producing 4,300 units at $11.00 each will allow the firm to avoid losing money on this project.Answer: 4,300 units at $11.00 each.
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Assume that you have shorted a call option on Intuit stock with a strike price of $35; when you originally sold (wrote) the option, you received $5. The option will expire in exactly three months time. a. If the stock is trading at $41 in three months, what will your payoff be? What will your profit be? b. If the stock is trading at $23 in three months, what will your payoff be? What will your profit be? c. Draw a payoff diagram showing the amount you owe at expiration as a function of the stock price at expiration d. Redo (c), but instead of showing payoffs, show profits.
a)The payoff will be -$1 and the profit will be $4. b) The payoff will be -$0 and the profit will be $5. c) & d) diagram is attached below.
To calculate the payoff and profit for the shorted call option on Intuit stock, we need to consider the different scenarios based on the stock price at expiration.
a. If the stock is trading at $41 in three months:
The call option has a strike price of $35, which means the option will be exercised by the buyer since the stock price is higher than the strike price. As the option writer, you are obligated to sell the stock at the strike price of $35. However, since you received $5 when you sold the option, your effective selling price will be $35 + $5 = $40. Therefore, your payoff will be $40 - $41 = -$1. Your profit will be the initial premium received minus the payoff, which is $5 - $1 = $4.
b. If the stock is trading at $23 in three months:
In this case, the stock price is lower than the strike price of $35. The call option will not be exercised by the buyer as it would be more advantageous for them to buy the stock directly from the market at a lower price. Since the option is not exercised, your payoff will be zero. Your profit will be the initial premium received, which is $5.
c. Payoff diagram,
The payoff diagram is a straight line starting from the strike price of $35 and going downwards, as the payoff is zero for stock prices below the strike price. Above the strike price, the payoff decreases linearly with the increase in the stock price.
d. Profit diagram,
The profit diagram is the same as the payoff diagram because the profit is equal to the initial premium received subtracted by the payoff. Since the initial premium is the same for both scenarios, the profit diagram will have the same shape as the payoff diagram.
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Surveys have found that chocolate is Canadians' favourite ice-cream flavour. indicate the possible effects quantity demanded of chocolate ice cream. Surveys have found that chocolate is Canadians' favourite ice-cream flavour. The discovery of cheaper synthetic vanilla flavouring lowers the price of vanilla ice cream. No change Up Not applicable
The discovery of cheaper synthetic vanilla flavoring that lowers the price of vanilla ice cream is unlikely to have a significant effect on the quantity demanded of chocolate ice cream.
The preference for chocolate ice cream as Canadians' favorite flavor indicates a strong consumer demand for chocolate ice cream. The discovery of cheaper synthetic vanilla flavoring and a subsequent decrease in the price of vanilla ice cream may lead to a shift in consumer preferences within the ice cream market. Some consumers who previously purchased vanilla ice cream may switch to the now cheaper vanilla option. However, it is unlikely to have a direct impact on the quantity demanded of chocolate ice cream, given its status as the favorite flavor.
While the price reduction in vanilla ice cream may attract some customers, the popularity and established demand for chocolate ice cream are likely to remain stable. Factors such as taste preferences, personal preferences, and brand loyalty play significant roles in consumers' choices. Therefore, the effect on the quantity demanded of chocolate ice cream is expected to be minimal, with no substantial change in this scenario.
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R∘ Lid. had cost of goods sold of $6,000 million, ending inventory of $2,500 million, and average inventory of $2,000 milli handise turnover is Muluple Cholce a. 0.33 b. 240 c. 0.4
d. 12.00
For cost of goods sold of $6,000 and average inventory of $2,000 million merchandise turnover for R∘ Lid. is 3
How to calculate merchandise turnoverTo calculate the merchandise turnover, we can use the formula:
Merchandise Turnover = Cost of Goods Sold / Average Inventory
Given:
Cost of Goods Sold (COGS) = $6,000 million
Ending Inventory = $2,500 million
Average Inventory = $2,000 million
Substituting the values into the formula, we have:
Merchandise Turnover = $6,000 million / $2,000 million
Merchandise Turnover = 3
Therefore, the merchandise turnover for R∘ Lid. is 3. This means that, on average, the company sells its entire inventory three times during the given period.
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Walmart is consistently rated as a top firm for supply chain management. Suppose Chick-fil-A decides to study practices at Walmart, in order to improve their supplie relationship process. This is an example of:
A. functional benchmarking.
B. internal benchmarking.
C. competitive benchmarking.
D. generic benchmarking.
Walmart is consistently rated as a top firm for supply chain management. Suppose Chick-fil-A decides to study practices at Walmart, in order to improve their supply relationship process. This is an example of competitive benchmarking.
As they say, "Benchmarking is the practice of comparing business processes and performance metrics to industry bests and best practices from other companies." This allows companies to evaluate their performance, highlight their deficiencies, and develop plans to better their systems and operations. This process entails determining which industry or firm to compare oneself to and determining the benchmark measures to use for comparison. Benchmarking can be categorized into four types: internal, competitive, functional, and generic.
Benchmarking is usually done to improve performance and increase efficiency in a business. Chick-fil-A can study Walmart to improve its supply chain management and thus improve its operations. Competitive benchmarking, which is the type of benchmarking mentioned in this question, includes evaluating a company's processes against rivals' processes. In summary, Chick-fil-A's study of Walmart's supply chain management practices is an example of competitive benchmarking.
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Please follow the link below to access the video to listen to the Henry Talk on the Satisfaction Consequence, and then answer the questions below. Your submission should be attached; NOT typed in the submission box. ANSWERS SHOULD ALIGN VERY CLOSELY WITH INFORMATION IN VIDEO Plus students mustl find one additional article to write a brief summary
Link to Henry Talk Videos on Satisfaction's Consequences (https://hstalks.com/t/722/satisfactions-consequences/?business)
Link to Henry Talk Audio Version (https://hstalks.com/t/722/satisfactions-consequences/?business)
Explain the similarities and differences with our book definition of customer satisfaction and the video’s definition.
The book's definition of customer satisfaction is the degree to which customers are pleased with a company's product or service.
Satisfaction is influenced by factors such as product quality, price, and customer service. Whereas, in the video, customer satisfaction is defined as a consumer's happiness or pleasure as a result of buying or using a product or service.
Differences:The primary difference is that the book definition of customer satisfaction is broader than the video definition. The book definition encompasses the whole process of customer engagement, including factors such as price and customer service, while the video definition is more focused on the consumer's overall happiness or pleasure. The video also focuses on the "hedonic" aspect of customer satisfaction, which refers to a customer's emotional response to a product or service.
Similarities:Both definitions are concerned with how customers perceive and evaluate a company's product or service. Additionally, both definitions recognize that customer satisfaction is influenced by a variety of factors, including product quality and customer service. Finally, both definitions acknowledge that customer satisfaction is a critical component of building customer loyalty and promoting repeat business
Customer satisfaction is the degree to which customers are pleased with a company's product or service. Satisfaction is influenced by factors such as product quality, price, and customer service. In the video, customer satisfaction is defined as a consumer's happiness or pleasure as a result of buying or using a product or service. The primary difference is that the book definition of customer satisfaction is broader than the video definition. The book definition encompasses the whole process of customer engagement, including factors such as price and customer service, while the video definition is more focused on the consumer's overall happiness or pleasure. The video also focuses on the "hedonic" aspect of customer satisfaction, which refers to a customer's emotional response to a product or service.Both definitions are concerned with how customers perceive and evaluate a company's product or service. Additionally, both definitions recognize that customer satisfaction is influenced by a variety of factors, including product quality and customer service. Finally, both definitions acknowledge that customer satisfaction is a critical component of building customer loyalty and promoting repeat business
It is essential for businesses to understand what customer satisfaction is and what it entails. It is not enough to provide excellent products and services; businesses must also strive to make their customers happy and satisfied with their offerings. By doing so, businesses can promote customer loyalty and repeat business. Additionally, businesses must understand the various factors that influence customer satisfaction, such as product quality and customer service. Finally, businesses must continually monitor and measure customer satisfaction to ensure that they are meeting their customers' needs and expectations.
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3 1 point In vertical analysis, the base amount for the Balance Sheet is type your answer... the base amount for the Income Statement is type your answer... 4 1 point The current ratio and acid-test ratio both measure a company's ability to pay its current obligations. Which of the following statements is FALSE when comparing these two ratios? They both include inventory in the numerator. They have the same denominator - current liabilities. All these choice are false. The acid-test ratio will be a lower than the current ratio because it has less accounts in the numerator.
1. In vertical analysis, the base amount for the Balance Sheet is Total Assets. The base amount for the Income Statement is Net Sales.
2. The false statement when comparing current ratio and acid-test ratio is: They both include inventory in the numerator. Current Ratio and Acid-Test Ratio measure a company's ability to pay its current obligations. The current ratio is used to determine the company's ability to meet its current obligations by comparing its current assets to its current liabilities.The acid-test ratio is used to determine a company's ability to meet its immediate obligations by subtracting inventory from current assets and then comparing that result to current liabilities. The statement that is false when comparing these two ratios is that they both include inventory in the numerator.
3. The acid-test ratio will be lower than the current ratio because it has less accounts in the numerator. The acid-test ratio is calculated by subtracting the current inventory from the current assets and then dividing that sum by the current liabilities. Because it does not include inventory in the numerator, the acid-test ratio is always lower than the current ratio.
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Consider an industry composed of two firms producing the same good. Let y 1
be the output of firm 1 and y 2
the output of firm 2 . For simplicity, assume that the price p of the good does not change with the output produced by the firms; this could be a reasonable assumption if the good is a luxury good. The total cost of producing y 1
in firm 1 is C 1
(y 1
); the total cost of producing y 2
in firm 2C 2
(y 2
). The two functions C 1
,C 2
are increasing and convex. Firm 1 is more efficient in the same sense that C 1
(y)
(y) for every y>0. The firms behave as a cartel and jointly choose y 1
,y 2
to maximise the industry's total profit π(y 1
,y 2
)=p×(y 1
+y 2
)−C 1
(y 1
)−C 2
(y 2
) Show that the solution to that maximisation problem need not entail that firm 1 produces more than firm 2. More precisely: exhibit two increasing and convex cost functions C 1
,C 2
satisfying (1) for which the output levels y 1
,y 2
maximising π(y 1
,y 2
)
In some cases, the solution to the maximization problem of the industry's total profit may not result in firm 1 producing more than firm 2. To illustrate this, let's consider two increasing and convex cost functions, C1(y) and C2(y), that satisfy the conditions.
Suppose that both cost functions are identical: C1(y) = C2(y). In this case, the firms have the same cost structure. When they behave as a cartel and jointly choose output levels to maximize total profit, they will divide the output equally between them. The output levels y1 and y2 will be such that y1 = y2, ensuring an equal distribution of production between the two firms.
This scenario demonstrates that even if firm 1 is more efficient individually, with lower costs for any given output level, it doesn't necessarily imply that it will produce more than firm 2 when they act as a cartel. The cartel arrangement allows both firms to benefit from market power by collectively controlling the industry's output and pricing. If the cost functions are similar, the cartel members may find it optimal to divide the market equally to maximize their joint profits.
It's important to note that this specific outcome is dependent on the assumptions made regarding the cost functions and the firms' behavior as a cartel. Different cost structures or alternative assumptions could lead to different results, such as firm 1 producing more than firm 2. The specific shape and characteristics of the cost functions and the strategic behavior of the firms play crucial roles in determining the outcome of the maximization problem.
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A put option and a call option with an exercise price of $60 and four months to expiration sell for $3.39 and $4.89, respectively. If the risk-free rate is 5 percent per year, compounded continuously, what is the current stock price?
The current stock price is approximately $63.48. This is calculated using the put-call parity relationship and the given prices of the put and call options.
To determine the current stock price, we can use the put-call parity relationship and the given information about the put and call options. The put-call parity equation is given by:
Call Price - Put Price = Stock Price - Present Value of Exercise Price
Substituting the given values, we have:
$4.89 - $3.39 = Stock Price - [tex]e^(^-^r^T^)[/tex] * Exercise Price
Since the exercise price is $60 and the risk-free rate is 5 percent per year compounded continuously, we can calculate the present value of the exercise price:
Present Value of Exercise Price =[tex]e^(^-^r^T^)[/tex] * Exercise Price
= [tex]e^(^-^0^.^0^5 ^*^ (^4^/^1^2^)[/tex]) * $60
Simplifying further, we find:
Present Value of Exercise Price = e^(-0.01667) * $60
Now, we can rearrange the put-call parity equation to solve for the stock price:
Stock Price = Call Price - Put Price + Present Value of Exercise Price
= $4.89 - $3.39 +[tex]e^(^-^0^.^0^1^6^6^7^)[/tex] * $60
Calculating this expression, we find that the current stock price is approximately $63.48.
Therefore, based on the put-call parity relationship and the given options prices, the current stock price is approximately $63.48.
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Topic: Purchasing, Receiving, and Storage
Part A:
Proper purchasing, receiving, and storage of food and beverage items is critical to a food and beverage department's or eatery's success. In this discussion, you will apply what you learned in the Learning Activity and reading to the following scenario and then respond to the questions.
Scenario: Your hotel restaurant is planning a big Thanksgiving dinner for 400 guests that includes many different types of pie all requiring whipped cream. As the food and beverage manager, you inform your vendor 30 days in advance of the event that you will need 10 gallons of cream. Your vendor misunderstands and has 20 gallons in ten 2-gallon containers, delivered five days later to a new receiving clerk who stores nine (9) of the 2-gallon containers containing the cream immediately. The chef sees one of the 2-gallon containers on a preparation table about an hour later and proceeds to use a gallon of the cream in his gravy for that night's meal. He leaves the remainder on the preparation table shouting to his sous chef's assistant to put the cream away when he can. Two hours later, the assistant stores the remainder in the refrigerator. Note: The cream has an expiration date three and a half weeks from the sending date.
What were the problems in this scenario?
Who should be responsible to remedy this situation and how should they resolve this problem while still obtaining the required amount of cream?
What changes should be instituted going forward?
Part B:
Do some research out on the Internet and find out what kind of software you would recommend to the food and beverage director for a major resort complex in order to track receipt, storage, production, and inventory for food and beverages at the resort's many restaurants. Explain your recommendation.
The scenario presents problems related to miscommunication, improper storage, and potential wastage of cream for a Thanksgiving dinner event.
Part A:
The problems in this scenario include miscommunication between the food and beverage manager and the vendor, improper storage of the cream, and potential wastage of a significant amount due to the chef's use of a gallon for gravy. The receiving clerk also failed to store the remaining cream promptly.
To remedy this situation and obtain the required amount of cream, the food and beverage manager should take responsibility. They should communicate with the vendor and request an immediate delivery of the correct amount of cream. Meanwhile, the chef and the assistant should be informed about the miscommunication and instructed to use the cream sparingly and properly store any unused portions.
Going forward, the hotel restaurant should establish clearer communication channels with vendors to avoid misunderstandings. Proper training and guidelines should be provided to the receiving clerk, chef, and assistant regarding the storage and handling of food items.
Part B:
For tracking receipt, storage, production, and inventory of food and beverages at a major resort complex, I would recommend implementing an enterprise resource planning (ERP) system with integrated modules for the food and beverage department. One suitable software solution could be Oracle Hospitality's Food and Beverage Management System.
This software offers comprehensive features for managing procurement, inventory, production, and recipe management. It allows real-time tracking of food and beverage items from the moment of receipt to storage and usage in different restaurants within the resort complex. The system provides detailed reporting, cost analysis, and forecasting capabilities to optimize inventory levels and minimize waste.
With its centralized database, the software enables efficient communication and coordination between the various restaurants and the food and beverage director. It streamlines operations, improves inventory accuracy, reduces manual paperwork, and enhances overall efficiency in managing food and beverage resources across the resort complex.
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