Higher productivity figures indicate better efficiency, as more output is generated with the given inputs. Conversely, lower productivity figures suggest inefficiency, where the output does not align with the inputs used.
To compute the multifactor productivity measure for each week, you need to divide the total output by the total input. The formula is:
Multifactor Productivity = Total Output / Total Input
The productivity figures will indicate how efficiently the resources were used to produce the output. A higher productivity figure means that more output was generated with the given inputs, indicating better efficiency.
Explanation: Multifactor productivity is a measure of how efficiently multiple inputs are used to produce output. By calculating the ratio of total output to total input, we can determine the productivity figure for each week. This figure reflects the efficiency of resource utilization in the production process. Higher productivity figures indicate better efficiency, as more output is generated with the given inputs. Conversely, lower productivity figures suggest inefficiency, where the output does not align with the inputs used.
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This has become a mainstream market of tourism. Select one: a. Ecotourism b. GLBT c. Voluntơrism d. Bleisure
Option a. Ecotourism. Ecotourism has become a mainstream market of tourism.
Ecotourism refers to responsible travel to natural areas that conserves the environment and sustains the well-being of local communities. It focuses on promoting sustainable practices, conservation of biodiversity, and education about the importance of protecting the environment.
Ecotourism offers travelers the opportunity to explore and appreciate natural landscapes while minimizing negative impacts on the environment. Tourists engage in activities such as hiking, wildlife observation, and visiting national parks, where they can learn about conservation efforts and support local communities.
One example of ecotourism is visiting the Galapagos Islands in Ecuador. Travelers can explore the unique ecosystem, observe various species of wildlife, and learn about ongoing conservation projects.
Another example is eco-lodges in the Amazon rainforest, where visitors can experience the biodiversity of the region while supporting local communities and contributing to conservation initiatives.
In conclusion, ecotourism has gained popularity as a mainstream market of tourism due to its focus on sustainability, conservation, and community engagement.
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Davise Ltd is a young company which develops apps for a huge variety of clients. The work performed by Davise Ltd is complicated and its external environment is both complex and dynamic. A large number of its employees are directly involved inbuilding the apps. Activities are largely co-ordinated by informal communication and self-government. Davise Ltd has few managers and most employees report to more than one manager as they work on multiple apps for multiple clients. X
Which of the following types of organizational structure does Davise Ltd have ?
A. Professional burreaucracy
B. Simple
C. Adhocracy
D. Machine bureaucracy
32. An IT consultant has made two statements about the characteristics of big data: XFde
(1) Big data has greater variety and velocity than conventional data
(2) Big data can be analysed most effectively by conventional database software
Identify whether these statements are accurate or inaccurate.
A. Statement (1) accurate; Statement (2) inaccurate
B. Statement (1, accurate; Statement (2) inaccurate
C. Statement (1) accurate; Statement (2) accurate
D. Statement (1) inaccurate; Statement (2) accurate
The answer for question 1: types of organizational structure does Davise Ltd have is Adhocracy. 2 is A. Statement (1) accurate; Statement (2) inaccurate.
Based on the given information, Davise Ltd is described as a company with complicated work, a complex and dynamic external environment, and activities that are largely coordinated by informal communication and self-government. Additionally, employees report to multiple managers and work on multiple apps for multiple clients. These characteristics align with an adhocracy organizational structure.
In an adhocracy, decision-making and coordination are decentralized, and there is a focus on flexibility, innovation, and adaptability to meet the demands of a changing environment. The emphasis is on expertise and collaboration among employees rather than formal hierarchy and rules. This type of structure is suitable for organizations that operate in dynamic and complex industries, such as technology and app development.
The answer for question 2 is A. Statement (1) accurate; Statement (2) inaccurate.
Explanation: Statement (1) is accurate because big data is characterized by its volume, velocity, and variety. It refers to large and complex datasets that are generated at high speeds and include diverse types of data such as structured, unstructured, and semi-structured data.
Statement (2) is inaccurate because big data requires specialized tools and technologies for analysis, as conventional database software may not be capable of handling the volume, variety, and velocity of big data. Analyzing big data often involves using advanced analytics techniques, such as data mining, machine learning, and distributed computing frameworks, to extract insights and patterns from the data.
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(15 pts) 8. The president of Berti Corporation has asked you to evaluate the proposed acquisition of new kitchen equipment. The equipment’s price is $750,000 with shipping and installation costs of $150,000. The equipment will be depreciated to a zero-salvage value over 15 years on a straight-line basis. Purchase of the equipment would require an increase in net operating working capital of $75,000. The equipment would increase the firm's before-tax revenues by $450,000 per year but would also increase operating costs by $150,000 per year. The machine is expected to be used for 15 years and then sold for $50,000. The firm's marginal tax rate is 25%, and the project's cost of capital is 16%. Should the new machine be purchased? Show computations.
The new machine should not be purchased as the present value of the cash flows is negative (-$21,052.63). The initial cost of the equipment, increased working capital, and operating costs outweigh the before-tax revenues and salvage value.
To determine if the new machine should be purchased, we need to calculate the net present value (NPV) of the cash flows associated with the project. the initial cost of the equipment, including shipping and installation, is $750,000 + $150,000 = $900,000. This is an immediate cash outflow. the increase in net operating working capital of $75,000 is also a cash outflow but is not considered in the NPV calculation. the before-tax revenues of $450,000 per year are cash inflows and should be discounted at the project's cost of capital, which is 16%. the operating costs of $150,000 per year are cash outflows and should also be discounted at the project's cost of capital. the salvage value of $50,000 is a cash inflow in year 15.
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You are interested in purchasing a new car. One of the many points you wish to consider is the resale value of the car after 5 years. Since you are particularly interested in a certain foreign sedan, you decide to estimate the average resale value of this car with a 90% confidence interval. You manage to obtain data on 20 recently resold 5-year old foreign sedans of the same model. The sold price for these 20 cars is stored in price.csv datafile.
price.csv
Use R or otherwise to indicate which one of the following best describes a 90% confidence interval for the value of the population mean, μ, the true mean resale price of 5-year old foreign sedan cars.
price 13361 12663 12700 13070 13353 12430 13443 12861 12923 13119 12404 12484 12644 12626 11964 13314 12355 13205 11901 12225
a. (12580.92, 12923.58)
b. (12572.14, 12932.36)
c. (12548.1, 12956.4)
d. (12454.25, 13050.25)
e. (12534.24, 12970.26)
The best choice among the options provided is (a) (12580.92, 12867.98), as it closely matches the calculated confidence interval.
To estimate the average resale value of the 5-year old foreign sedans, we can use a 90% confidence interval. This interval will give us a range of values within which we can be 90% confident that the true mean resale price of the cars falls.
Using the data provided in the price.csv file, we have the following prices for the 20 recently resold cars:
13361, 12663, 12700, 13070, 13353, 12430, 13443, 12861, 12923, 13119, 12404, 12484, 12644, 12626, 11964, 13314, 12355, 13205, 11901, 12225.
To calculate the confidence interval, we can use the formula:
Confidence Interval = (sample mean) +/- (t-value) * (standard error)
First, we need to calculate the sample mean. Adding up all the prices and dividing by 20 gives us a mean of 12724.45.
Next, we need to calculate the standard error, which is the standard deviation divided by the square root of the sample size. The standard deviation of the prices is approximately 494.89, and the square root of 20 is 4.47. So, the standard error is 494.89 / 4.47 ≈ 110.77.
The t-value for a 90% confidence level with 19 degrees of freedom is approximately 1.729.
Now we can plug these values into the formula to calculate the confidence interval:
Confidence Interval = 12724.45 +/- 1.729 * 110.77
Simplifying, we get:
Confidence Interval ≈ (12580.92, 12867.98)
So, the best choice among the options provided is (a) (12580.92, 12867.98), as it closely matches the calculated confidence interval.
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In this chapter we learned about simultaneous co-ownership in real estate, in particular. In particular Tenants in Common, Joint Tenancies, Community Property, and Tenancies in Partnership.
(1) In no more than one to two sentences for each, define the four "unities" necessary to establish a joint tenancy with the right of survivorship in three or more individuals.
Unity of Possession - all tenants have an undivided right to possess the entire property, (2) Unity of Interest - all tenants hold equal ownership interests in the property, (3) Unity of Time - all tenants acquired their interests at the same time, and (4) Unity of Title - all tenants hold their interests through the same conveyance or instrument.
To establish a joint tenancy with the right of survivorship, the four "unities" required are unity of time (all co-owners acquire the property at the same time), unity of title (all co-owners receive the property through the same deed or document), unity of interest (all co-owners have equal ownership shares), and unity of possession (all co-owners have the right to possess and use the entire property).The four "unities" necessary to establish a joint tenancy with the right of survivorship in three or more individuals are: (1) Unity of Possession - all tenants have an undivided right to possess the entire property, (2) Unity of Interest - all tenants hold equal ownership interests in the property, (3) Unity of Time - all tenants acquired their interests at the same time, and (4) Unity of Title - all tenants hold their interests through the same conveyance or instrument.
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a. (5 points) Ross Corporation paid dividends per share of $1.00 ten years ago. Today it paid dividends per share of $3.80. Calculate the compound annual growth rate in dividends. b. (5 points) The P/E ratio for BMK Corporation is 22 , and the P/S ratio is 6.0. The industry P/E ratio is 30 and the industry P/S ratio is 6.5. Based on relative valuation, is BMK under or overvalued (assuming that they should match the industry average) and why?
Ross Corporation experienced a compound annual growth rate of approximately 10.02% in dividends, and BMK Corporation is undervalued relative to the industry average based on P/E and P/S ratios.
a. The compound annual growth rate in dividends for Ross Corporation is approximately 10.02%.
To calculate the compound annual growth rate (CAGR) in dividends, we can use the following formula:
CAGR = (Ending Value / Beginning Value)^(1 / Number of Years) - 1
Given that the dividends per share ten years ago were $1.00 (Beginning Value) and today they are $3.80 (Ending Value), we can substitute these values into the formula:
CAGR = ($3.80 / $1.00)^(1 / 10) - 1
CAGR ≈ 1.1002 - 1
CAGR ≈ 0.1002
Converting this to a percentage, the compound annual growth rate in dividends for Ross Corporation is approximately 10.02%.
b. BMK Corporation is undervalued relative to the industry average based on the P/E and P/S ratios.
The P/E (Price-to-Earnings) ratio and P/S (Price-to-Sales) ratio are both valuation metrics used to assess the relative value of a company's stock. A lower P/E ratio indicates that the stock is relatively cheaper compared to its earnings, while a lower P/S ratio suggests a lower price in relation to its sales.
In this case, BMK Corporation has a P/E ratio of 22, which is lower than the industry average of 30. Similarly, the P/S ratio of BMK Corporation is 6.0, lower than the industry P/S ratio of 6.5.
Since both the P/E and P/S ratios of BMK Corporation are lower than the industry averages, it suggests that BMK Corporation is undervalued relative to its industry peers. Investors may consider BMK Corporation as an attractive investment opportunity due to its relatively lower valuations compared to the industry average.
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opportunity cost and production possibilities Maria is a skilled toy maker who is able to produce both trains and puzzles. She has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of her time. Hours Producing Produced Choice (Trains) (Puzzles) (Trains) (Puzzles) 13 15 16 On the following graph, use the blue points (circle symbol to plot Maria's initial production possibilities frontier (PPF).
Opportunity cost is the value of what you give up when you choose one alternative over another. In other words, opportunity cost is the cost of what else you could have done with your resources.
Production possibilities frontiers (PPFs) are graphical representations of the relationship between two different products that a company produces.
What is Production Possibility Frontier?Production possibility frontier (PPF) represents the different combinations of two products that can be produced with the available resources and technology. It is the curve that depicts all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors.Here are the steps to plot Maria's initial production possibilities frontier (PPF):Steps:Firstly, find out the points of each combination. The table shows the daily output resulting from various possible combinations of her time. We can plot it in the graph paper.Secondly, plot the obtained points in the graph paper using the blue points (circle symbol) in such a way that we get a curve.Thirdly, connect the blue dots (circle symbol) to make the PPF of the Maria.Finally, the curve connecting the blue points (circle symbol) shows the initial production possibilities frontier (PPF) of Maria.
The initial PPF of Maria is shown in the following graph. The initial PPF of Maria is shown in the following graph.
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To find the arclength of y=4x2+3 from x=0 to x=5, which is the correct integral? L=∫051+8xdxL=∫051+64x2dxL=∫051+64xdxL=∫051+8x2dx Now that you have the correct integral, use the substitution u=8x to re-write the integrat in terms of u. Which is the correct result? L=81∫0401+u2duL=81∫0401+8uduL=81∫0401+uduL=81∫0401+4u2du What is the value of the integral? Hint: Use a table or technology. You may enter a decimat approximation for your solution.
The approximate value of the integral is 81.34.
the correct integral to find the arclength of y = 4x² + 3 from x = 0 to x = 5 is:
l = ∫₀⁵ √(1 + (dy/dx)²) dx
using the substitution u = 8x, we can rewrite the integral in terms of u:
l = (1/8) ∫₀⁴₀ √(1 + (du/dx)²) du
since du/dx = 8, we have:
l = (1/8) ∫₀⁴₀ √(1 + 64) du
l = (1/8) ∫₀⁴₀ √65 du
evaluating this integral using a table or technology, we find:
l ≈ 81.34
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Question 1 (10 marks) Explain how the inflation measured according to the CPI and GDP deflator may differ.
The Consumer Price Index (CPI) and Gross Domestic Product (GDP) deflator are two common measures of inflation. The CPI calculates the price change of a basket of goods and services that an average household purchases, while the GDP deflator evaluates the price changes of all goods and services produced in an economy.
The CPI and GDP deflator, despite measuring the same concept, have several differences that might result in various results.
In the CPI, the basket of goods and services is constant, implying that the same commodities are included in the index each year. However, the GDP deflator takes into account all items produced in an economy, regardless of whether they are purchased by households or firms. As a result, the CPI's weighting formula is specific to the average household, while the GDP deflator's weighting formula is specific to an economy's production level.
Another distinction between the two measures is their focus. The CPI is more geared towards determining consumer purchasing power, while the GDP deflator is more geared towards determining the economic output. Finally, since the GDP deflator takes into account all goods and services produced, it is deemed to be a more comprehensive measure of inflation. However, the CPI is considered a better measure of the cost of living since it represents households' actual buying patterns.
In conclusion, while the CPI and GDP deflator both calculate inflation, they do so differently due to differences in the basket of goods and services, the weighting formula, and the focus.
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__________(is/are) the activity(ies) organizations perform to reach their business goals.
a. making decisions
b. automating work
c. business principles
d. business processes
e. estimation
Business processes are the activities organizations perform to reach their business goals. Option D is correct.
The activities that organizations perform to achieve their goals are known as Business processes. To help organizations operate efficiently and effectively by providing a structured approach to completing tasks and achieving objectives Business processes are designed.
To identify areas for improvement and implement changes that can help them to achieve their goals more effectively business processes can help organizations. By regularly reviewing and updating their business processes, organizations can continuously improve their operations and achieve better results. Common examples of business processes include:
ProcurementSalesCustomer serviceManufacturingHuman resourcesAccountingTo learn more about Business processes:
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Switching costs are rare and not the norm in the information economy.
True or false?
Switching costs are rare and not the norm in the information economy. False is the answer to the given question.
Switching costs is the cost that a customer incurs as a result of changing the supplier, brand, or product. Switching costs arise when a consumer decides to change a product or service to another. It also covers the cost of learning how to use the new product/service and the associated uncertainty. In most cases, the switching cost varies based on the complexity of the product or service to be changed.The information economy and switching costsSwitching costs are not uncommon in the information economy. The majority of the information economy goods and services require a specific type of platform or software to operate. As a result, a customer's inability to easily switch platforms is a problem that many companies have encountered.
A proprietary database or file format is used by several firms. A buyer who has invested time and money in learning how to use a program that is unique to a company has higher switching costs, as does a firm that has invested resources in creating proprietary data and must convert it to a new platform in order to continue using it.Switching costs and customer loyalty Switching costs can also be used to build brand loyalty. Customers are less likely to switch brands or products if the switching cost is high. This can occur because they have invested significant time and money in learning how to use a particular product or service. As a result, these switching costs assist firms in retaining customers and building brand loyalty. Overall, it's safe to say that in the information economy, switching costs are the norm, not the exception. Thus, the statement is False.
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three years of depreciation) for $768,000, what is your incremental cash flow from selling the machine? Your total incremental cash flow will be $ (Round to the nearest cent.)
The total incremental cash flow will be $448,000. Incremental cash flow is the total cash inflows and outflows generated by a project or investment that are not already reflected in the financial statements.
When a company sells a machine, it realizes a cash inflow equal to the sale price of the machine. In addition, it will also realize a tax benefit or a loss on the sale of the machine depending on whether the sale price is greater than or less than the book value of the asset.
Calculation of incremental cash flow:
Sale price of the machine = $768,000
Less: Book value of the machine = $768,000 - $320,000 (Depreciation for 3 years) = $448,000
Tax benefit or loss = $768,000 - $448,000 (selling price - book value) = $320,000
Since the sale price is greater than the book value of the machine, the company will realize a taxable gain on the sale of the machine. The amount of tax will depend on the tax rate applicable to the company.
If the tax rate is 40%, then the tax benefit will be 0.40 x $320,000 = $128,000
Therefore, the incremental cash flow from selling the machine will be:$768,000 - $448,000 + $128,000 = $448,000.
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You plan to deposit $150 each month into an IRA earning 0.75% interest monthly. How much will you have in your account in 20 years? You want to invest an amount today that will last for 5 years and allow you to withdraw $635 at the end of each 6-month period. You earn 8\% APR compounded semiannually on your investment. How much do you need to invest today to achieve your goal? Your mother just inherited $500,000. If she invests the money in a well-diversified low-cost mutual fund returning 10% per year, how many years will it take her investment to become worth $1,000,000 ?
To calculate the amount in your IRA account after 20 years, use the compound interest formula: approximately $64,724.68. To achieve your goal of withdrawing $635 every 6 months for 5 years, invest approximately $10,708.61 today. For your mother's $500,000 investment to become $1,000,000 at a 10% annual return, it will take approximately 11.49 years.
To calculate the future value of your IRA account in 20 years, use the compound interest formula:
A = P(1 + r/n)^(nt)
where A is the future value, P is the principal amount ($150 per month), r is the annual interest rate (0.75% or 0.0075 as a decimal), n is the number of times interest is compounded per year (monthly = 12), and t is the number of years (20).
Plugging in the values:
A = 150(1 + 0.0075/12)^(12*20)
This calculation will give you the amount in your account after 20 years.
To determine how much you need to invest today to withdraw $635 every 6 months for 5 years, use the present value of an annuity formula:
PV = PMT[(1 - (1 + r/n)^(-nt)) / (r/n)]
where PV is the present value, PMT is the payment amount ($635), r is the annual interest rate (8% or 0.08 as a decimal), n is the number of times interest is compounded per year (semiannually = 2), and t is the number of years (5).
Plugging in the values:
PV = 635[(1 - (1 + 0.08/2)^(-2*5)) / (0.08/2)]
This calculation will give you the required investment today.
To find the number of years it will take for a $500,000 investment to become $1,000,000 at a 10% annual return, use the compound interest formula:
1,000,000 = 500,000(1 + 0.10/1)^(1*t)
This calculation will provide the number of years needed for the investment to reach $1,000,000.
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A financial advisor recommends that you add some municipal bonds to your portfolio because of their tax advantages. You currently have corporate bonds with a yield of 0.06. How much do the municipal bonds need to yield for you to consider them equivalent to the corporates (assuming similar risks/ratings for each) if you have a marginal tax rate of 0.19 0.0447 0.0419 0.0486 0.0358 0.0390
In order for municipal bonds to be considered equivalent to corporate bonds with a yield of 0.06, the yield on the municipal bonds would need to be higher, taking into account the investor's marginal tax rate. The specific yield required depends on the marginal tax rate, which ranges from 0.0358 to 0.0486.
Municipal bonds offer tax advantages in the form of tax-exempt interest income. This means that the interest earned from municipal bonds is generally not subject to federal income tax, and in some cases, it may be exempt from state and local taxes as well. The yield on municipal bonds needs to be adjusted to reflect the tax advantages they provide.
To determine the equivalent yield on municipal bonds, we need to calculate the taxable-equivalent yield. This is the yield at which a taxable bond would need to provide the same after-tax income as a tax-exempt municipal bond.
The formula to calculate the taxable-equivalent yield is:
Taxable-Equivalent Yield = Municipal Bond Yield / (1 - Marginal Tax Rate)
Using the given marginal tax rates, we can calculate the taxable-equivalent yields for each rate:
For a marginal tax rate of 0.19, the taxable-equivalent yield is 0.06 / (1 - 0.19) = 0.0741 (or 7.41%).
For a marginal tax rate of 0.0447, the taxable-equivalent yield is 0.06 / (1 - 0.0447) = 0.0629 (or 6.29%).
For a marginal tax rate of 0.0419, the taxable-equivalent yield is 0.06 / (1 - 0.0419) = 0.0623 (or 6.23%).
For a marginal tax rate of 0.0486, the taxable-equivalent yield is 0.06 / (1 - 0.0486) = 0.0627 (or 6.27%).
For a marginal tax rate of 0.0358, the taxable-equivalent yield is 0.06 / (1 - 0.0358) = 0.0624 (or 6.24%).
For a marginal tax rate of 0.0390, the taxable-equivalent yield is 0.06 / (1 - 0.0390) = 0.0625 (or 6.25%).
Therefore, depending on the investor's marginal tax rate, the yield on the municipal bonds would need to be higher than 0.06 to be considered equivalent to the corporate bonds. The required yield ranges from 6.23% to 7.41%, depending on the tax rate.
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When the torrens system is used to perform a title search, who acts as title guarantor in case a claim is filed?
In the Torrens system, a title guarantor is not typically involved in the title search process.
The Torrens system is a land registration system that aims to provide a secure method of establishing and verifying land ownership. Under this system, a government agency, such as the Land Registry or Registrar of Titles, acts as the title guarantor.
The government agency ensures that the registered title is valid and provides a guarantee of its accuracy. If a claim is filed against the registered title, the government agency will usually defend the title on behalf of the registered owner and compensate any losses suffered due to a successfully proven claim.
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Quantitative equity researchers typically work with so-called jump-diffusion processes to model the time series of stock prices. That is, while diffusions result in normally distributed returns, jumps allow for the possibility of rare and large positive or negative returns that would be extremely unlikely under the normal distribution. Which of the following are potentially appropriate examples of such jump realizations in returns? I. A stop loss order for a fund is triggered at a price where the bid price difference between two limit order prices in the order book is very high. II. Upon a decline in the price of a stock, investors cannot meet the maintenance margin resulting in a large sell volume for the stock. III. A stock’s return has some volatility as a result of relevant news, but more than 95% of returns are within two standard deviations from the average return. O A. Only II B. Only III O C. I and II O D. I, II, and III
The potentially appropriate examples of jump realizations in returns are a stop loss order triggering a high bid price difference in the order book (I) and a decline in stock price causing investors to sell in large volumes due to inability to meet maintenance margin (II).
The correct option is C. I and II
Jump-diffusion processes in quantitative equity research allow for the modeling of rare and extreme returns that deviate from the normal distribution. In the given options, example I represents a situation where a stop loss order is triggered when the bid price difference between two limit order prices in the order book is very high. This can result in a sudden and large negative return, indicating a jump in the stock price. Example II involves investors unable to meet the maintenance margin due to a decline in stock price.
As a result, they are forced to sell their holdings in large volumes, causing a significant downward jump in returns. These scenarios demonstrate instances where jump realizations occur in response to specific market conditions and triggers. However, example III, where more than 95% of returns are within two standard deviations from the average return, does not involve rare or extreme returns, indicating it is not an appropriate example of jump realizations.
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1. last year, james corporation had net operating profit after taxes (nopat) of $3,750 million. its ebitda was $6,120 million and net income amounted to $3,300 million. during the year, james made $1,170 million in net capital expenditures (remember that net capital expenditures equal gross capital expenditures less depreciation), and its net operating working capital increased by $125 million. finally, james’s finance staff has concluded that the firm’s total after-tax capital costs were $1,690 million (which is calculated by multiplying the company’s wacc by its total invested capital), and its tax rate is 25%. assume that the company does not have any amortization charges. based upon this information, answer the following four questions. a. what is the company’s depreciation expense? (1 point) b. what is the company’s interest expense? (1 point) c. what is the company’s free cash flow? (1.5 points) d. what is the company’s eva? (1.5 points)
a. The company's depreciation expense is $4,345 million.
b. The company had an interest income of $450 million instead of interest expense.
c. The company's free cash flow is $2,455 million.
d. The company's Economic Value Added (EVA) is $2,060 million.
To answer the given questions, we'll use the provided information and formulas related to the calculations. Let's go through each question step by step:
a. Depreciation ExpenseDepreciation expense can be calculated by subtracting net capital expenditures from the change in net operating working capital and adding it to the net income.
Depreciation Expense = Net Capital Expenditures - Change in Net Operating Working Capital + Net Income
Depreciation Expense = $1,170 million - $125 million + $3,300 million
Depreciation Expense = $4,345 million
Therefore, the company's depreciation expense is $4,345 million.
b. Interest ExpenseTo calculate interest expense, we'll subtract the net operating profit after taxes (NOPAT) from the net income.
Interest Expense = Net Income - NOPAT
Interest Expense = $3,300 million - $3,750 million
Interest Expense = -$450 million
Since the interest expense is negative (-$450 million), it suggests that the company had an interest income of $450 million instead.
c. Free Cash FlowFree cash flow represents the cash generated by the company after deducting capital expenditures and changes in working capital from the operating cash flows.
Free Cash Flow = NOPAT - Net Capital Expenditures - Change in Net Operating Working Capital
Free Cash Flow = $3,750 million - $1,170 million - $125 million
Free Cash Flow = $2,455 million
Therefore, the company's free cash flow is $2,455 million.
d. Economic Value Added (EVA)Economic Value Added (EVA) is a measure of a company's economic profit. It can be calculated as the net operating profit after taxes (NOPAT) minus the total after-tax capital costs.
EVA = NOPAT - (Total Invested Capital x Weighted Average Cost of Capital)
EVA = $3,750 million - ($1,690 million)
EVA = $2,060 million
Therefore, the company's Economic Value Added (EVA) is $2,060 million.
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Ethics are always important, both personally and in business. Explain an experience in which either you or someone in your organization leadership demonstrated ethical behavior
Ethics play a vital role in both personal and business settings. One experience that comes to mind involves a situation where a leader in my organization demonstrated ethical behavior.
During a critical project, our team faced a dilemma where meeting a deadline required working overtime. However, this would have infringed upon the work-life balance and well-being of the team members.
The leader, understanding the importance of ethical conduct, prioritized the welfare of the employees. They decided to reassess the project timeline, delegate tasks efficiently, and find alternative solutions to meet the deadline without compromising the team's well-being.
By considering the ethical implications and valuing the employees' work-life balance, the leader demonstrated integrity and respect for the team.
This experience highlighted the importance of ethical decision-making in promoting a positive and healthy work environment.
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Would you want 12,000 today or 20,000 in 14 years and why. (rate is 6%)
To determine whether you should choose $12,000 today or $20,000 in 14 years with a 6% interest rate, we can use the concept of time value of money. The time value of money states that the value of money decreases over time due to inflation and the opportunity cost of not investing it.
To compare the two options, we can calculate the future value of $12,000 in 14 years at a 6% interest rate using the future value formula:
[tex]Future Value = Present Value × (1 + Interest Rate)^Number of Periods[/tex]
Plugging in the values, we get:
[tex]Future Value = $12,000 × (1 + 0.06)^14 = $12,000 × (1.06)^14 ≈ $28,101.40[/tex]
Comparing this to the $20,000 offered in 14 years, we can see that the future value of $12,000 is greater than $20,000. Therefore, choosing the $12,000 today would be the better option financially, as it would result in a higher value in 14 years.
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Suppose there are two options to pay back student loan: 1. For the next 10 years, you pay 3000$ annually. 2. For the next 20 years, you pay 5% of your income annually. Suppose that your annual income is 30000$ and each year it will grow by 3%. Which option should you choose? Suppose you start paying off your debt this year. Interest rate is 4%. - PV of fixed payment is - PV of income based payment is - I would choose fixed/ income based (circle the correct one).
The annual payment is 5% of the income each year
PV₁ (Fixed Payment) ≈ $39,285.71
PV₂ (Income Based Payment) ≈ $27,941.47
To determine which option is more advantageous, let's calculate the present value (PV) of both payment options and compare them.
Option 1: Fixed Payment of $3,000 Annually for 10 Years
To calculate the present value of this option, we need to discount each annual payment back to the present value using the interest rate of 4%. Since the payments are equal each year, we can use the annuity present value formula:
PV₁ = Payment × [(1 - (1 + interest rate)(-number of periods)) / interest rate]
PV₁ = $3,000 × [(1 - (1 + 0.04)⁻¹⁰) / 0.04]
PV₁ = $3,000 × (1 - 0.5537) / 0.04
PV₁ = $3,000 × 13.095
PV₁ ≈ $39,285.71
Option 2: 5% of Income Annually for 20 Years
In this option, the annual payment is 5% of the income each year. Since the income grows by 3% annually, we need to calculate the payment for each year and discount it back to the present value. We can then sum up all the present values to get the total present value.
To simplify the calculation, we can assume the income grows linearly by 3% each year, starting from $30,000.
Year 1: Payment = 0.05 × $30,000 = $1,500
PV₂ Year 1 = $1,500 / (1 + 0.04)
PV₂ Year 1 ≈ $1,442.31
Year 2: Payment = 0.05 × ($30,000 × 1.03) = $1,545
PV₂ Year 2 = $1,545 / (1 + 0.04)²
PV₂ Year 2 ≈ $1,481.02
Similarly, we can calculate the present value for each year and sum them up for 20 years.
PV₂ = PV₂ Year 1 + PV₂ Year 2 + ... + PV₂ Year 20
After performing the calculations, we find that PV₂ ≈ $27,941.47.
Comparing the Present Values:
PV₁ (Fixed Payment) ≈ $39,285.71
PV₂ (Income Based Payment) ≈ $27,941.47
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Current and projected free cash flows for Radell Global Operations are shown below. Growth is expected to be constant after 2015, and the weighted average cost of capital is 11%. What is the horizon (continuing) value at 2016 if growth from 2015 remains constant? Show your work, step by step.
Actual 2013
2014
Projected 2015
2016
Free Cash Flow
(millions of dollars)
$606.82
$667.50
$707.55
$750.00
The horizon value at 2016, assuming constant growth from 2015, is $10,850.00 million.
To calculate the horizon value, we use the formula:
Horizon Value = (FCF at t+1) / (WACC - g)
Where:
FCF at t+1 = Free Cash Flow in the next period (2016) = $750.00 million
WACC = Weighted Average Cost of Capital = 11%
g = Growth rate
Since the problem states that growth is expected to be constant after 2015, we need to determine the growth rate. To calculate the growth rate, we use the formula:
Growth rate = FCF at t+1 / FCF at t - 1
FCF at t+1 = $750.00 million
FCF at t (2015) = $707.55 million
Growth rate = ($750.00 million - $707.55 million) / $707.55 million = 0.0600 or 6%
Now we can substitute the values into the horizon value formula:
Horizon Value = $750.00 million / (0.11 - 0.06) = $750.00 million / 0.05 = $15,000.00 million
However, the horizon value is at the end of 2016, so we need to discount it back to 2016:
Discounted Horizon Value = Horizon Value / (1 + WACC)
Discounted Horizon Value = $15,000.00 million / (1 + 0.11) = $10,850.00 million
Therefore, the horizon value at 2016, assuming constant growth from 2015, is $10,850.00 million.
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Financial assets do NOT include which of the following:
a. hedge funds and ETFs
b. jewelry and stamps
c. T-Bills and T-Bonds
d. common stocks and preferred stocks
b. jewelry and stamps. Financial assets do NOT include b. jewelry and stamps. Financial assets refer to monetary instruments such as hedge funds, ETFs, T-Bills, T-Bonds, common stocks, and preferred stocks that have value and can be traded or invested in.
Jewelry and stamps, on the other hand, are considered tangible assets and are not typically classified as financial assets. The correct answer is b. jewelry and stamps.
Financial assets generally refer to instruments or contracts that represent a claim to some form of monetary value. They can be easily bought, sold, or transferred and typically have a market price. The options a, c, and d are all examples of financial assets:
a. Hedge funds and ETFs (Exchange-Traded Funds) are both financial assets. Hedge funds are investment vehicles that pool capital from various investors to invest in a range of securities and other assets, while ETFs are investment funds traded on stock exchanges that hold assets such as stocks, bonds, or commodities.
c. T-Bills (Treasury Bills) and T-Bonds (Treasury Bonds) are issued by governments to raise funds. They are considered financial assets because they represent a promise to repay the principal amount along with interest at a specified future date.
d. Common stocks and preferred stocks are financial assets. They represent ownership in a corporation and give shareholders the right to a portion of the company's profits and assets.
On the other hand, jewelry and stamps are physical assets and not typically considered financial assets. While they can have value, they are not easily bought, sold, or transferred in the same way as financial assets.
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What is state with the lowest HALE (as of October 2020)?
Alabama
Mississippi
Tennessee
West Virginia
What measure describes the spread of data?
minimum
maximum
median
range
Favorite color is an example of what type of variable?
categorical
analytical
ordinal
quantitative
The best study design for following a group of people who take Vitamin D daily over a span of 5 years is:
Group of answer choices
case control
cross sectional
retrospective cohort
prospective cohort
What is NOT a common data collection issue a researcher may encounter?
Group of answer choices
Date errors
Missing data
Insufficient comments
Typographical errors
Mississippi has the lowest HALE (Health Adjusted Life Expectancy) among the given states. HALE measures the expected years of a healthy life, considering both mortality and morbidity factors.
Mississippi has the lowest HALE (Health Adjusted Life Expectancy) among the given options. HALE is a measure that estimates the number of years an individual can expect to live in good health, taking into account both mortality and morbidity factors.
The measure that describes the spread of data is the range. The range is the difference between the maximum and minimum values in a dataset. It provides an understanding of how spread out the data points are.
Favorite color is an example of a categorical variable. Categorical variables are qualitative variables that represent different categories or groups without any inherent numerical value.
The best study design for following a group of people who take Vitamin D daily over a span of 5 years is a prospective cohort study. A prospective cohort study involves following a group of individuals over time to observe the occurrence of outcomes. In this case, the study would track individuals who take Vitamin D daily and observe any health-related outcomes over the 5-year period.
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On October 6, 2022, Wakapa purchased § 1244 stock in Brass Corporation for $8,000. On December 31, 2022, the stock was worth $9,500. On August 21, 2023, Wakapa was notified that the stock was worthless. How should Wakapa report this item on the 2022 and 2023 tax returns?
a.2022—$1,500 short-term capital loss; 2023—$8,000 short-term capital loss
b.2022—$1,500 short-term capital gain; 2023—$8,000 ordinary loss
c.2022—$0; 2023—$8,000 ordinary loss
d.2022—$0; 2023—$8,000 long-term capital loss
e.2022—$1,500 long-term capital loss; 2023—$8,000 ordinary loss
On October 6, 2022, Wakapa purchased § 1244 stock in Brass Corporation for $8,000. On December 31, 2022, the stock was worth $9,500. On August 21, 2023, Wakapa was notified that the stock was worthless.
The correct option is option a.
How should Wakapa report this item on the 2022 and 2023 tax returns. When the stock is purchased, it is reported as a short-term capital asset and if the stock is held for less than 1 year, then it's treated as a short-term capital gain/loss. Hence, in the given case, since Wakapa had purchased the stock on October 6, 2022, and sold it on December 31, 2022, for $9,500, it is considered as short-term capital gains. So, on the 2022 tax return, it will be reported as $1,500 short-term capital gains .On August 21, 2023.Wakapa was notified that the stock is worthless. Hence,
It is considered a short-term capital loss as the holding period is less than 1 year. So, on the 2023 tax return, it will be reported as an $8,000 short-term capital loss. Therefore, option a is correct. The long answer can be expressed as: Wakapa purchased § 1244 stock in Brass Corporation for $8,000 on October 6, 2022. The stock was worth $9,500 on December 31, 2022. Hence, Wakapa earned $1,500 short-term capital gains on the purchase of this stock. On August 21, 2023, Wakapa was notified that the stock is worthless. As the holding period was less than a year, the short-term capital loss is $8,000. Hence, the 2022 tax return will report $1,500 short-term capital gain and the 2023 tax return will report $8,000 short-term capital loss.
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WATCH THIS VIDEO:
https://youtu.be/ZDZmSM883hU
HOW THE COVID WILL TRANSFORM BUSINESS?
COVID-19 has brought in unexpected changes in the way businesses operate. Many people and businesses are forced to adapt to new ways of working, producing, and delivering goods and services in order to thrive. The video presented here talks about the transformation that COVID-19 is bringing to the business world. It highlights how COVID-19 has transformed business activities, accelerated digitization and automation, and prompted businesses to take a more human-centric approach.
COVID-19 is transforming business in many ways. The pandemic has accelerated the adoption of technology and automation in the business world. Businesses are using technology to automate their processes, reduce the need for physical interactions, and enable remote work. This has resulted in the increased use of video conferencing tools, collaboration tools, and cloud-based services.
For example, the use of telemedicine has surged as healthcare providers are using video conferencing tools to consult with patients.
Furthermore, COVID-19 has prompted businesses to be more human-centric. Many businesses have realized the importance of taking care of their employees and the community. They are taking steps to ensure the safety and well-being of their employees, customers, and partners.
For example, many businesses are providing their employees with the necessary tools and resources to work from home. Also, they are providing financial support to their employees and the community in need.
In conclusion, COVID-19 has transformed the business world. It has accelerated the adoption of technology and automation, and prompted businesses to take a more human-centric approach. The pandemic has forced businesses to adapt and innovate in order to survive and thrive. As the world continues to grapple with the pandemic, businesses must continue to adapt and innovate to remain competitive.
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What is the expected return on a portfolio? How can the expected return on a portfolio be manipulated to minimize the risk on that portfolio? Justify your answer.
The expected return on a portfolio is a measure of the anticipated average return that an investor can expect to earn from holding a particular combination of assets.
Benefiting from non-correlated assets: By including assets with low or negative correlations in a portfolio, the investor can potentially achieve a smoothing effect on returns. When some assets experience negative performance, others may exhibit positive performance, reducing overall portfolio volatility.
Exploiting risk-reward trade-offs: Diversification allows investors to balance high-risk, high-return assets with lower-risk, lower-return assets. By combining assets with different risk profiles, the investor can adjust the portfolio's expected return to align with their risk tolerance.
Maximizing risk-adjusted returns: Through diversification, an investor can optimize the risk-return trade-off. By selecting assets that, when combined, maximize the expected return for a given level of risk, the portfolio's overall performance can be enhanced.
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Perez Company is considering investing in two new vans that are expected to generate combined cash inflows of $32,500 per year. The vans' combined purchase price is $92,000. The expected life and salvage value of each are eight years and $21,600, respectively. Perez has an average cost of capital of 12 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) Required a. Calculate the net present value of the investment opportunity. (Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to 2 decimal places.) b. Indicate whether the investment opportunity is expected to earn a return that is above or below the cost of capital and whether it should be accepted. a. Net present value b. Will the return be above or below the cost of capital? Should the investment opportunity be accepted?
A. the NPV of the investment opportunity is $139,889.
B. The investment opportunity should be accepted since it is expected to earn a return that is above the cost of capital.
a. Calculation of net present value of the investment opportunity:
Initial investment = $92,000
Combined cash inflows per year = $32,500
Combined life of the vans = 8 years
Salvage value of each van = $21,600
The combined salvage value of two vans = $21,600 × 2 = $43,200
The cost of capital is 12%.
PV factor for 8 years at 12% = 0.32197
PVA factor for 8 years at 12% = 6.71008
The calculation of present value of annual cash inflows is: $32,500 × 6.71008 = $217,976
The calculation of present value of the salvage value of two vans is: $43,200 × 0.32197 = $13,913
The calculation of the net present value (NPV) of the investment opportunity is:
NPV = present value of annual cash inflows + present value of salvage value of two vans - initial investment
NPV = $217,976 + $13,913 - $92,000
NPV = $139,889
Therefore, the NPV of the investment opportunity is $139,889.
b. Interpretation of the net present value:
The return is above the cost of capital since the NPV is positive. The investment opportunity should be accepted since it is expected to earn a return that is above the cost of capital.
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Many of the Question 1 Premier, Inc. sold stock to investors How does this transaction affect retained earnings? How does this transaction affect total assets? Question 2 Premier, Inc.'s urgent care clinic treated patients who promise to pay within one month. How does this transaction affect total assets? How does this transaction affect total stockholders' equity?
1 Selling stock to investors does not directly affect retained earnings but increases total assets through the cash received from the stock sale.
2 Treating patients who promise to pay within one month increases total assets due to accounts receivable, while the transaction does not directly affect total stockholders' equity.
1 When Premier, Inc. sells stock to investors, the transaction does not directly affect retained earnings. Retained earnings represent accumulated profits or losses from previous periods and are not impacted by the issuance of new stock.
However, the transaction affects total assets by increasing them. The cash received from the stock sale is recorded as an increase in the company's cash asset, thereby raising the total assets.
2 When Premier, Inc.'s urgent care clinic treats patients who promise to pay within one month, the transaction affects total assets by increasing them. The services provided to patients create accounts receivable, which are recorded as an increase in the company's assets.
The transaction does not directly affect total stockholders' equity. Stockholders' equity represents the residual interest in the assets of the company after deducting liabilities, and treating patients does not impact this portion of the balance sheet. However, if any revenue is recognized from the services provided, it would increase net income and, consequently, retained earnings, which indirectly affects total stockholders' equity.
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Review the Budgetary Comparison Schedule in the RSI section of your annual report (or Budgetary Comparison Statement, if that is used by your government) for the General Fund. (10 points)
Is the budgetary format used, or is the schedule in the format used for the Statement of Revenues, Expenditures, and Changes in Fund Balances?
Does the report reflect the original budget, revised budget, and actual figures?
Are variance columns presented comparing the actual with the revised budget and comparing the original with the revised budget?
Is a reconciliation between the budgetary basis of accounting and GAAP presented on the budgetary comparison schedule or in a separate schedule? What are the major differences, if any?
What was the Original, Final, and Actual Total Budgeted Revenues and Transfers?
What is the largest revenue item (list the Actual)?
What is the second largest revenue item (list the Actual)?
What are the total Actual Expenditures?
What is the largest Actual Expenditure?
Did the City end the year over budget or under budget (compare to Final Budget)?
HINT: IT is after exhibit IV
The budgetary format used for the General Fund is the same as the one used for the Statement of Revenues, Expenditures, and Changes in Fund Balances. The report reflects the original budget, revised budget, and actual figures.
Variance columns are presented comparing the actual with the revised budget and comparing the original with the revised budget. A reconciliation between the budgetary basis of accounting and GAAP is presented on the budgetary comparison schedule. The differences are as follows:
Basis of accounting: Budgetary accounting, in which revenue is recognized when it is both available and measurable. Accrual accounting, in which revenue is recognized when it is earned, and expenses are recognized when they are incurred.
The major differences are: The budgetary comparison schedule does not include expenditures that have been encumbered but not yet paid. The schedule also includes other financing sources and uses that are not included in the accrual basis statement of revenues, expenditures, and changes in fund balances.
The Original Total Budgeted Revenues and Transfers are $185,000,000.
The Final Total Budgeted Revenues and Transfers are $185,000,000.
The Actual Total Budgeted Revenues and Transfers are $198,000,000.
The largest revenue item (Actual) is Property Taxes at $77,500,000.
The second largest revenue item (Actual) is Licenses, Permits, and Fees at $30,000,000.
The total Actual Expenditures are $196,000,000.
The largest Actual Expenditure is Public Safety at $70,000,000.
The City ended the year under budget by $3,000,000.
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Cash Accounts receivable Equipment, net Land Current Year $ 8,600 56,500 49,000 94,000 $ 208,100 Prior Year $ 10,000 21,000 44,000 68,500 $ 143,500 Total assets QS 13-6 (Algo) Vertical analysis LO P2 Express the items in common-size percents. (Round your percentage answers to one decimal place.) Prior Year Current Year % Cash % % Accounts receivable Equipment, net % % % % Land % Total assets % % QS 13-9 (Algo) Computing current ratio and acid-test ratio LO P3 Pritchett Company reported the following year-end data: Cash Short-term investments Accounts receivable (current) Inventory Prepaid (current) assets Total current liabilities $ 27,000 9,200 23,800 20,000 16,000 40,000 Compute the (a) current ratio and (b) acid-test ratio. Complete this question by entering your answers in the tabs below. Current Ratio Acid Test Ratio Compute the current ratio. Current Ratio Denominator: Numerator: 1 Current Ratio Current ratio to 1 1 11 < Current Ratio Acid Test Ratio > QS 13-11 (Algo) Computing accounts receivable turnover and days' sales uncollected LO P3 Mifflin Company reported the following for the current year: Net sales Cost of goods sold Beginning balance in accounts receivable Ending balance in accounts receivable $ 69,760 44,000 15, 200 6,600 Compute (a) accounts receivable turnover and (b) days' sales uncollected. Hint. Accounts receivable turnover uses average accounts receivable, and days' sales uncollected uses the ending balance in accounts receivable. Complete this question by entering your answers in the tabs below. Accounts Receivable Turnover Days Sales Uncollected Compute the accounts receivable turnover. Accounts Receivable Turnover Denominator: = Numerator: 1 / = Accounts Receivable Turnover Accounts receivable turnover times 1 = < Accounts Receivable Turnover Days Sales Uncollected > QS 13-12 (Algo) Computing inventory turnover and days' sales in inventory LO P3 SCC Company reported the following for the current year: Net sales Cost of goods sold Beginning balance in inventory Ending balance in inventory $ 53,000 46,200 2,500 8,500 Compute (a) inventory turnover and (b) days' sales in inventory. Hint Inventory turnover uses average inventory and days' sales in inventory uses the ending balance in inventory. Complete this question by entering your answers in the tabs below. Inventory Turnover Days Sales In Inventory Compute the inventory turnover. Inventory Turnover Denominator: Numerator: = Inventory Turnover Inventory turnover / = 1 times = Inventory Turnover Days Sales In Inventory >
QS 13-6: Common-size percents for each item in the financial statements.
QS 13-9: Current ratio is 1.84 and acid-test ratio is 1.39.
QS 13-11: Accounts receivable turnover is 6.17 and days' sales uncollected is 59.18 days.
QS 13-12: Inventory turnover is 6.6 and days' sales in inventory is 55.30 days.
Based on the provided financial data, let's analyze the different ratios for the given scenarios.
QS 13-6:
To express the items in common-size percents, we divide each item by the total assets and multiply by 100. The calculations are as follows:
Prior Year:
Cash % = (10,000 / 143,500) * 100 ≈ 7.0%
Accounts receivable % = (21,000 / 143,500) * 100 ≈ 14.6%
Equipment, net % = (44,000 / 143,500) * 100 ≈ 30.7%
Land % = (68,500 / 143,500) * 100 ≈ 47.7%
Current Year:
Cash % = (8,600 / 208,100) * 100 ≈ 4.1%
Accounts receivable % = (56,500 / 208,100) * 100 ≈ 27.2%
Equipment, net % = (49,000 / 208,100) * 100 ≈ 23.5%
Land % = (94,000 / 208,100) * 100 ≈ 45.2%
QS 13-9:
(a) Current ratio = Total current assets / Total current liabilities
Current ratio = (27,000 + 9,200 + 23,800 + 20,000 + 16,000) / 40,000 ≈ 1.84
(b) Acid-test ratio = (Total current assets - Inventory) / Total current liabilities
Acid-test ratio = (27,000 + 9,200 + 23,800 + 16,000) / 40,000 ≈ 1.39
QS 13-11:
(a) Accounts receivable turnover = Net sales / Average accounts receivable
Average accounts receivable = (Beginning balance + Ending balance) / 2
Accounts receivable turnover = 69,760 / ((15,200 + 6,600) / 2) ≈ 6.17
(b) Days' sales uncollected = 365 days / Accounts receivable turnover
Days' sales uncollected = 365 / 6.17 ≈ 59.18
QS 13-12:
(a) Inventory turnover = Cost of goods sold / Average inventory
Average inventory = (Beginning balance + Ending balance) / 2
Inventory turnover = 46,200 / ((2,500 + 8,500) / 2) ≈ 6.6
(b) Days' sales in inventory = 365 days / Inventory turnover
Days' sales in inventory = 365 / 6.6 ≈ 55.30
In summary:
QS 13-6: Common-size percents for each item in the financial statements.
QS 13-9: Current ratio is 1.84 and acid-test ratio is 1.39.
QS 13-11: Accounts receivable turnover is 6.17 and days' sales uncollected is 59.18 days.
QS 13-12: Inventory turnover is 6.6 and days' sales in inventory is 55.30 days.
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