Jeff Bezos' successful approach to stakeholders, including subordinates, has led to concerns about the treatment of employees and work conditions. Leaders must balance driving growth with ensuring the well-being and fair treatment of all stakeholders.
Jeff Bezos, the founder and former CEO of Amazon, has been praised for his visionary leadership and the remarkable growth of the company. However, when assessing his approach to stakeholders, particularly subordinates, there are both positive and negative aspects to consider.
On one hand, Bezos prioritized customer satisfaction and long-term value creation, which positively impacted shareholders and investors. He focused on innovation, efficiency, and relentlessly driving growth, which resulted in significant financial success for the company. This success indirectly benefited employees through job security and potential for career advancement.
On the other hand, there have been criticisms regarding Bezos' management style and treatment of subordinates. Reports suggest a demanding and high-pressure work environment, with allegations of excessive workload, long hours, and limited work-life balance.
Moreover, instances of poor treatment of warehouse workers and challenges regarding labor practices have been brought to light, raising concerns about employee well-being and fair treatment.
In conclusion, while Jeff Bezos' approach to stakeholders, moving forward, it is crucial for leaders to strike a balance between driving organizational growth and ensuring the well-being and fair treatment of all stakeholders, including subordinates.
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You have just purchased a home and taken out a $520,000 mortgage. The mortgage has a 30-year term with monthly payments and an annual percentage rate (APR) (with semi- annual compounding) of 584%. (Note: Be careful
not to round any intermediate steps less than six decimal places.)
a
How much will you pay in interest, and how much will you pay in principal, during the first year?
b. How much will you pay in interest, and how much will you pay in principal, during the twentieth year (i.e., between 19 and 20 years from now)?
a. How much will you pay in interest, and how much will you pay in principal, during the first year?
During the first year, you will pay an interest payment of $ I. (Round to the nearest dollar)
During the first year, you will pay a principal payment of $ . (Round to the nearest dollar)
a) During the first year, you will pay approximately $25,271.40 in interest and $19,959.84 in principal. b) During the twentieth year, you will pay approximately $6,192.09 in interest and $39,039.15 in principal.
To calculate the interest and principal payments during the first year and the twentieth year of the mortgage, we need to use the loan details and formulas for mortgage amortization.
Given:
Loan amount (Principal) = $520,000
Loan term = 30 years
Monthly payments
Annual Percentage Rate (APR) = 5.84% (compounded semi-annually)
(a) First year:
To calculate the interest and principal payments during the first year, we'll use the formula for monthly payment calculation:
Monthly interest rate = APR / (12 * 100) = 5.84% / (12 * 100) = 0.04867
Number of monthly payments = Loan term * 12 = 30 * 12 = 360
Monthly payment = Principal * (Monthly interest rate / (1 - [tex](1 + Monthly interest rate)^{-Number of monthly payments[/tex]))
= $520,000 * (0.04867 / (1 - [tex](1 + 0.04867)^{-360[/tex]))
= $520,000 * (0.04867 / (1 - 0.44113))
= $520,000 * (0.04867 / 0.55887)
= $520,000 * 0.087027
= $45,231.24 (approximately)
Interest payment for the first year = Principal * Monthly interest rate = $520,000 * 0.04867 = $25,271.40 (approximately)
Principal payment for the first year = Monthly payment - Interest payment for the first year = $45,231.24 - $25,271.40 = $19,959.84 (approximately)
Therefore, during the first year, you will pay approximately $25,271.40 in interest and $19,959.84 in principal.
(b) Twentieth year:
To calculate the interest and principal payments during the twentieth year, we'll need to find the outstanding principal after 19 years. Then we can calculate the interest and principal payments based on the remaining principal.
Remaining loan term after 19 years = Loan term - 19 = 30 - 19 = 11 years
Remaining number of monthly payments = Remaining loan term * 12 = 11 * 12 = 132
Outstanding principal after 19 years can be calculated using the formula for remaining loan balance:
Outstanding principal = Principal * [tex](1 + Monthly interest rate)^{-Remaining number of monthly payments[/tex]
= $520,000 * [tex](1 + 0.04867)^{-132[/tex]
= $520,000 * [tex](1.04867)^{-132[/tex]
= $520,000 * 0.24520
= $127,264.00 (approximately)
Now, we can calculate the interest and principal payments during the twentieth year using the same formula:
Interest payment for the twentieth year = Outstanding principal * Monthly interest rate = $127,264.00 * 0.04867 = $6,192.09 (approximately)
Principal payment for the twentieth year = Monthly payment - Interest payment for the twentieth year = $45,231.24 - $6,192.09 = $39,039.15 (approximately)
Therefore, during the twentieth year, you will pay approximately $6,192.09 in interest and $39,039.15 in principal.
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Consider a consumer with a utility function U = x1+ x2. Initially, the consumer was only purchasing good 2, but after the price of good 1 was reduced, the consumer switched all of her consumption into good 1. The total change in consumption of good 1 is due to the pure substitution effect (and the income effect is zero). a) True b) False Please provide explaination
The statement "The total change in consumption of good 1 is due to the pure substitution effect (and the income effect is zero)" is TRUE.
When the price of good 1 is reduced, the consumer will now find good 1 relatively cheaper compared to good 2. As a result, the consumer will substitute some of their consumption from good 2 to good 1, leading to an increase in the consumption of good 1.
This change in consumption is purely due to the substitution effect. The substitution effect measures the change in consumption that occurs when the relative prices of goods change, assuming that the consumer's income remains constant. In this case, the consumer's income effect is assumed to be zero, meaning that the change in consumption is solely driven by the substitution effect.
Therefore, the total change in consumption of good 1 is indeed due to the pure substitution effect, and the income effect is zero.
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what assignment you liked about it & what could have made
that assignment better, more impactful, more enjoyable.
Assignment could be made better, more impactful and more enjoyable by using multiple learning techniques, adding fun and creativity and providing feedback.
Here are some tips that you can apply to make your assignment more engaging and enjoyable:
Make it Relevant and Relatable - The assignment should be relevant and relatable to the students' interests. For example, if the student is interested in history, then an assignment related to the historical events will be more enjoyable and impactful.
Use Multiple Learning Techniques - You can use a variety of learning techniques such as interactive quizzes, videos, simulations, and gamification. These techniques make learning more fun and engaging.
Add Creativity and Fun - Assignments can be more enjoyable if they have a fun and creative element to them. For example, instead of a written assignment, students can make a video, create a podcast, or write a song. This will make the assignment more enjoyable and impactful.
Provide Feedback and Encouragement - Providing feedback and encouragement to the students can increase their motivation and engagement. It also helps them to identify areas where they need to improve and encourages them to keep going.
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(Time to Reach a Financial Goal) eBook You have $26,553.88 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $250,000. You expect to earn 13% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number. years
Rounding to the nearest whole number, it will take approximately 18 years to reach the goal of $250,000 in the brokerage account.
To determine how many years it will take to reach the goal of $250,000 in the brokerage account, we can use the concept of future value of an annuity.
The future value of an annuity formula is:
FV = P * [(1 + r)^n - 1] / r
Where:
FV = Future value of the annuity (in this case, $250,000)
P = Annual payment (in this case, $4,000)
r = Interest rate per period (in this case, 13% or 0.13)
n = Number of periods (unknown)
Plugging in the values into the formula, we have:
$250,000 = $4,000 * [(1 + 0.13)^n - 1] / 0.13
To solve for n, we need to isolate it on one side of the equation. Let's multiply both sides of the equation by 0.13 and divide by $4,000:
0.13 * $250,000 / $4,000 = (1 + 0.13)^n - 1
Simplifying:
8.125 = (1.13)^n - 1
Adding 1 to both sides:
9.125 = (1.13)^n
To solve for n, we can take the logarithm of both sides using the natural logarithm (ln):
ln(9.125) = ln[(1.13)^n]
Using logarithm properties:
ln(9.125) = n * ln(1.13)
Dividing both sides by ln(1.13):
n = ln(9.125) / ln(1.13)
Using a calculator, we can find that ln(9.125) ≈ 2.209 and ln(1.13) ≈ 0.124, so:
n ≈ 2.209 / 0.124 ≈ 17.82
Rounding to the nearest whole number, it will take approximately 18 years to reach the goal of $250,000 in the brokerage account.
Therefore, the answer is 18 years.
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Describe two (2) ways your past/current or potential supervisor has used task or relationship leadership. You should explore the subject of task vs relationship leadership and describe in detail which one your current supervisor adopts to lead your department.
Provide your response if you agree that the US is a task-oriented culture and how US multinational corporations (MNC) might differ in their leadership style. Why or why not? Describe in detail to support your response
Task leadership refers to the type of leadership that involves setting clear goals, delegating tasks, and ensuring that team members meet the goals set in place. Relationship leadership, on the other hand, is more concerned with building relationships, trust, and collaboration amongst team members.
Two ways my past/current supervisor has used task or relationship leadership are as follows:
1. Task Leadership: My previous supervisor used task leadership when he set a project and deadlines that needed to be met. He delegated specific tasks to each team member, ensuring that everyone had a role to play in the project's success. He monitored progress and provided feedback to the team members, making sure they met the project's deadlines.
2. Relationship Leadership: My current supervisor uses relationship leadership in our team. She understands the importance of building relationships and trust amongst team members. She focuses on creating a positive work environment that encourages teamwork, open communication, and collaboration. She ensures that every team member feels valued and supported, which helps to increase motivation and productivity.
In my opinion, the US is a task-oriented culture, which means that the majority of people are more concerned about getting the job done than building relationships. US multinational corporations (MNCs) might differ in their leadership style, depending on the country they operate in. In some countries, relationship leadership might be more effective, while in others, task leadership might be more effective.
However, US MNCs are known to adopt a more task-oriented leadership style. This style of leadership is effective in the US because people are more results-oriented and want to get the job done as quickly and efficiently as possible. MNCs that operate in other countries might need to adapt their leadership style to the country's culture to be successful. For example, if the country they are operating in values building relationships over task completion, then a relationship leadership style might be more effective.
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Suppose a 10-year, $1,000 bond with an 8% coupon rate and semiannual coupons is trading for $1,034.74.
Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section.
a. * What is the bond's yield to maturity (expressed as an APR with semiannual compounding)?
b. If the bond's yield to maturity changes to 9% APR, what will the bond's price be? 10 $
Maturity (years) 10
Face value 1,000
Coupon rate 8%
Bond price1,034.74 $
a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)?
Coupon
Number of periods
Yield to maturity
b. If the bond's yield to maturity changes to 9% APR, what will the bond's price be?
Yield to maturity 9%
Semiannual yield
Bond price
a. The bond's yield to maturity, expressed as an APR with semiannual compounding, is approximately 7.67%.
b. If the bond's yield to maturity changes to 9% APR, the bond's price will be $957.88.
a. To calculate the bond's yield to maturity (YTM), expressed as an Annual Percentage Rate (APR) with semiannual compounding, we can use the RATE function in Excel. The formula is as follows:
Yield to Maturity = RATE(Number of periods, Coupon, -Bond price, Face value) * 2
Given:
Maturity (years) = 10
Face value = $1,000
Coupon rate = 8%
Bond price = $1,034.74
Using the formula above, we can calculate the bond's yield to maturity:
Yield to Maturity = RATE(10*2, 8%/2, -$1,034.74, $1,000) * 2
= RATE(20, 4%, -$1,034.74, $1,000) * 2
= 0.0767 * 2
≈ 0.1534
Therefore, the bond's yield to maturity, expressed as an APR with semiannual compounding, is approximately 7.67%.
b. To calculate the bond's price when the yield to maturity changes to 9% APR, we can use the PRICE function in Excel. The formula is as follows:
Bond price = PRICE(Number of periods, Coupon, Yield to Maturity/2, Face value) * 2
Given:
Yield to Maturity = 9% APR = 9%/2 = 4.5% semiannual yield
Using the formula above, we can calculate the bond's price:
Bond price = PRICE(10*2, 8%/2, 4.5%/2, $1,000) * 2
= PRICE(20, 4%, 2.25%, $1,000) * 2
Using Excel, the PRICE function would be:
=PRICE(20, 4%, 2.25%, $1,000) * 2
This will give us the bond's price when the yield to maturity is 9% APR.
Therefore, the bond's price when the yield to maturity changes to 9% APR will be $957.88.
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entries LO2, 3 On February 1, 2020, Tessa Williams and Audrey Xie formed a partnership in Ontario. Williams contributed $95,000 cash and Xie contributed land valued at $135,000 and a small building valued at $195,000. Also, the partnership assumed responsibility for Xie's $145,000 long-term note payable associated with the land and building. The partners agreed to share profit or loss as follows: Williams is to receive an annual salary allowance of $105,000, both are to receive an annual interest allowance of 10% of their original capital investments, and any remaining profit or loss is to be shared equally. On November 20, 2020, Williams withdrew cash of $75,000 and Xie withdrew $60,000. After the adjusting entries and the closing entries to the revenue and expense accounts, the Income Summary account had a credit balance of $175.000 Required: 1. Present general journal entries to record the initial capital investments of the partners, their cash withdrawals, and the December 31 closing of the Income Summary and withdrawals accounts. View transaction list
The initial capital investments of the partners, cash withdrawals, and the closing of the Income Summary and withdrawals accounts have been recorded correctly. The journal entries reflect the transactions and their impact on the respective accounts.
Williams contributed $95,000 cash, which increases the cash asset and her capital account by $95,000.
Xie contributed land valued at $135,000 and a building valued at $195,000. The land and building increase Xie's capital account by a total of $330,000. The partnership assumes responsibility for Xie's long-term note payable of $145,000, which increases Xie's capital account by $145,000.
Williams withdrew $75,000 cash, which decreases her capital account and the cash asset by $75,000.
The closing entries are made to transfer the balances from temporary accounts (revenue, expense, and withdrawals) to the Income Summary account.
The initial capital investments of the partners, cash withdrawals, and the closing of the Income Summary and withdrawals accounts have been recorded correctly. The journal entries reflect the transactions and their impact on the respective accounts.
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businessfinancefinance questions and answerswhich of the following is not an example of a derivative financial instrument? a. an investment in shares b. a forward exchange contract c. a futures contract d. an option contract
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Question: Which Of The Following Is NOT An Example Of A Derivative Financial Instrument? A. An Investment In Shares B. A Forward Exchange Contract C. A Futures Contract D. An Option Contract
Which of the following is NOT an example of a derivative financial instrument?
a.
An investment in shares
b.
A forward exchange contract
c.
A futures contract
d.
An option contract
An investment in shares is not an example of a derivative financial instrument. Option A is correct.
Derivative financial instruments are financial contracts whose value is derived from an underlying asset, index, or reference rate. They are used for hedging, speculation, or arbitrage purposes. Let's examine the other options to understand why they are considered derivative financial instruments;
A forward exchange contract; This is a type of derivative where two parties agree to exchange currencies at a specified future date and at a predetermined exchange rate. It allows businesses to lock in a future exchange rate to hedge against currency fluctuations.
A futures contract; This is a standardized agreement to buy or sell an asset at a predetermined price on a specific date in the future. Futures contracts are commonly used in commodities trading and financial markets to manage price risk.
An option contract; This gives the holder the right, but not obligation, to buy or sell an underlying asset at specified price within a specific time period. Options are widely used for speculation, hedging, and risk management.
On the other hand, an investment in shares represents ownership in a company's equity. It involves purchasing shares of stock in a company, which gives the investor certain rights, such as voting rights and a share of the company's profits.
Hence, A. is the correct option.
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Share an example of anchoring.
How do we manage the fact that human beings develop stereotypes? How would you prevent stereotypes from creating unfairness in decision making?
Anchoring is a cognitive bias that affects decision-making. It is the tendency to rely too heavily on the first piece of information offered when making judgments. The first piece of information to be presented influences the final decision more than any other piece of information.
What is anchoring?Anchoring is a cognitive bias that affects decision-making. It is the tendency to rely too heavily on the first piece of information offered when making judgments. The first piece of information to be presented influences the final decision more than any other piece of information. Anchoring occurs in situations where people must estimate an unknown quantity or value. Even if the anchor value is clearly unrelated to the target value, it can still have a significant influence on people's estimates. This is one example of anchoring: when people are given an unrealistically high starting point, they will adjust their estimate upwards, even if they know it is unreasonable.
How do we manage the fact that human beings develop stereotypes?Human beings develop stereotypes due to cognitive biases that result in oversimplification of information processing, leading to mistakes in decision-making. These biases can be avoided by paying attention to the situations in which they occur, understanding the underlying causes, and adopting strategies to manage them.
How would you prevent stereotypes from creating unfairness in decision making?Stereo types can create unfairness in decision-making, which can be prevented by adopting the following strategies:
Challenge the assumption that all members of a group have the same traits. Look for differences within the group, and recognize that not all members of a group are the same.Treat individuals based on their merits, not their group membership.Be aware of the stereotypes you hold and how they influence your decisions.Avoid assumptions about people based on their group membership and focus instead on their individual characteristics.To know more about Anchoring, refer to the link below:
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Which of the following best describes "strategic sourcing"? OA. The process of developing procurement strategies that support operations OB. The process of developing suppliers and processes to increase profitability O C. The process of creating a top-tier supply network and reducing the level of risk in a supply chain D. The process of selecting suppliers to fulfill long-term supply requirements
Strategic sourcing involves selecting suppliers to fulfill long-term supply requirements, considering factors like quality, cost, and innovation. It aims to optimize the supply chain and contribute to the organization's overall strategic goals and profitability. Option D is correct.
Strategic sourcing refers to the systematic and long-term approach of selecting suppliers to fulfill the supply requirements of an organization. It involves evaluating and identifying suppliers that align with the organization's strategic goals and objectives.
The process of strategic sourcing goes beyond simple procurement and involves considering factors such as quality, reliability, cost, innovation, and sustainability. It aims to establish a mutually beneficial relationship with suppliers to enhance the overall performance and profitability of the organization.
By engaging in strategic sourcing, organizations can optimize their supply chain management and mitigate risks associated with supplier dependencies, disruptions, or fluctuations in the market. It enables them to develop a robust supplier base, negotiate favorable terms, and establish strategic partnerships that can contribute to long-term success.
Ultimately, strategic sourcing enables organizations to align their supply chain with their overall business strategy, improve operational efficiency, reduce costs, enhance product quality, and gain a competitive edge in the market.
Option D is correct.
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the asset demand for money is most closely related to money functioning as a
The asset demand for money is most closely related to money functioning as a store of value.
The asset demand for money is one of three causes of the demand for money. Asset demand refers to the need to hold money as a store of value. People keep money because it is the most liquid of all assets and can be readily turned into goods and services whenever required. Money functions as a store of value Money functions as a store of value, a medium of exchange, and a unit of account. When the asset demand for money is high, it means that people are keeping more money as a store of value rather than using it to buy things. As a result, interest rates decrease because there is less money in circulation for people to lend to others.
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Contribution Margin Ratio a. Imelda Company budgets sales of $1,250,000, fixed costs of $22,500, and variable costs of $100,000. What is the contribution margin ratio for Imelda Company? (Enter your answer as a whole number.) b. If the contribution margin ratio for Peppa Company is 53%, sales were $815,000, and fixed costs were $336,920, what was the income from operations? $
Income from Operations = Sales - Total Costs Income from Operations = $815,000 - $769,870Income from Operations = $45,130Therefore, the income from operations for Peppa Company was $45,130.
Calculation of contribution margin ratio:Contribution margin ratio is the difference between the sales revenue and total variable costs divided by the sales revenue. Mathematically, it can be expressed as: Contribution Margin Ratio = (Sales Revenue - Total Variable Costs) / Sales Revenue Given, Sales = $1,250,000Fixed Costs = $22,500Variable Costs = $100,000Total Costs = Fixed Costs + Variable CostsTotal Costs = $22,500 + $100,000Total Costs = $122,500Contribution Margin Ratio = ($1,250,000 - $100,000) / $1,250,000Contribution Margin Ratio = $1,150,000 / $1,250,000Contribution Margin Ratio = 0.92 * 100%Contribution Margin Ratio = 92%Therefore, the contribution margin ratio for Imelda Company is 92%.b) Calculation of income from operations: Given, Contribution Margin Ratio = 53%Sales = $815,000Fixed Costs = $336,920 Variable Costs = (Sales * Contribution Margin Ratio) / 100Variable Costs = ($815,000 * 53%) / 100Variable Costs = $432,950 Total Costs = Fixed Costs + Variable Costs Total Costs = $336,920 + $432,950Total Costs = $769,870.
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Which of the possibilities listed below can act to stabilize sediments and reduce the risk of mass wasting: add vegetation add excessive water over steepen slopes none of the above
Among the possibilities listed, adding vegetation is the option that can act to stabilize sediments and reduce the risk of mass wasting.
Vegetation plays a crucial role in stabilizing sediments due to its root systems that bind the soil together. The roots create a network that enhances soil cohesion and increases its resistance to erosion.
Additionally, vegetation intercepts rainfall, reducing the impact of water on the sediment and minimizing the chances of soil erosion. By acting as a protective layer, vegetation effectively reduces the risk of mass wasting.
The presence of vegetation contributes to slope stability in several ways. Firstly, the roots of plants anchor the soil, preventing it from being easily displaced by gravitational forces. The root systems create a matrix that binds the sediment particles together, enhancing the overall stability of the slope. Moreover, vegetation acts as a barrier, slowing down the flow of water over the slope and reducing its erosive potential.
This prevents excessive water from saturating the sediment and triggering landslides or other forms of mass wasting. Therefore, adding vegetation is an effective measure to stabilize sediments and mitigate the risk of mass wasting events.
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Winter Limited sold goods to its parent entity at a profit of R5 000. The goods had originally cost Winter Limited R20 000 The consolidation adjustment entry to eliminate this transaction would include the following item:
Select one:
A. CR Cost of sales R15 000
B. CR Cost of sales R25 000
(elimination of intragroup sales)
cost+ profit = sales (20 000+5000)
= R25 000 Revenue
C. CR Cost of sales R5 000
The consolidation adjustment entry to eliminate the intragroup sales transaction between Winter Limited and its parent entity would include the following item: CR Cost of sales R25 000
The adjustment entry is made to eliminate the profit on the intragroup sale. In this case, Winter Limited sold goods to its parent entity at a profit of R5 000, which means the selling price was R25 000 (cost + profit). To eliminate this transaction for consolidation purposes, the R25 000 revenue recognized from the intragroup sale needs to be reversed. This is done by crediting the Cost of sales account with R25 000, which effectively removes the revenue and profit from the transaction.
By eliminating the intragroup sale and the associated profit, the consolidation adjustment ensures that the financial statements reflect the economic reality of the group as a whole. It removes any intercompany transactions and profits that may distort the financial results when consolidating the parent and subsidiary entities. This adjustment is necessary to present accurate and meaningful financial information for the consolidated entity.
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In a closed economy, if the government is already running a budget deficit and then decides to increase spending by $50 billion without raising taxes, one can expect a. gross domestic product (GDP) to increase by $50 billion. b.imestment spending to fall by $50 billion. c. consumption and investment to collectively fall by $50 bilion. d. consumption to fall by $50 bilison. e. saving to rise by $50 billion.
If the government in a closed economy decides to increase spending by $50 billion without raising taxes while already running a budget deficit, the expected outcome would be an increase in gross domestic product (GDP) by $50 billion. Option (a) is the correct answer.
When the government increases its spending, it injects more money into the economy. This additional spending stimulates economic activity and leads to an increase in GDP. The increase in government spending directly contributes to the overall production and income in the economy, as it creates demand for goods and services.
As a result of the increased government spending, businesses may experience higher demand for their products, leading to an increase in production and investment spending. Consumers may also have more disposable income, which can boost consumption. Therefore, options (b), (c), (d), and (e) are not accurate in this scenario.
It's important to note that increasing government spending without raising taxes may lead to a larger budget deficit, which can have implications for the country's fiscal health in the long term. However, in the short term, the immediate impact would be an increase in GDP.
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Which two of the following statements regarding pricing methods are incorrect
O A. The percentage mark up with full cost plus pricing will always be smaller than the percentage mark up with marginal cost-plun pricing
OB A cost-plus pricing method will always ensure that a company will make a profit
OC. A full cost-plus pricing method does not take into account the effect of price on the quantity demanded by customers O
D. A selling price in excess of full cost will always ensure a company will make a profit
The two following statements that are incorrect regarding pricing methods are (A) The percentage mark up with full cost plus pricing will always be smaller than the percentage mark up with marginal cost-plus pricing and (D) A selling price in excess of full cost will always ensure a company will make a profit.
Explanation:Pricing methods refer to the different strategies used by businesses when deciding how to set prices for their products or services. The pricing method that a company chooses will depend on various factors, including the nature of the product, the competition, and the target market.Two of the given statements that are incorrect regarding pricing methods are (A) The percentage mark up with full cost plus pricing will always be smaller than the percentage mark up with marginal cost-plus pricing and (D) A selling price in excess of full cost will always ensure a company will make a profit. The following explanations support the above conclusions:
(A) The percentage mark-up with full cost plus pricing will always be smaller than the percentage mark-up with marginal cost-plus pricing is incorrect. The percentage mark-up with full cost-plus pricing will always be higher than the percentage mark-up with marginal cost-plus pricing.(D) A selling price in excess of full cost will always ensure a company will make a profit is incorrect. Even if a company sells at a price higher than full cost, they may still incur other costs like overhead costs that may make them operate at a loss.
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Compute the amount of raw materials used during November if $35,500 of raw materials were purchased during the month and if the inventories were as follows:
Inventories Balance November 1 Balance November 30
Raw materials $9,200 $5,100
Work in process $7,100 $8,600
Finished goods $11,100 $13,100
a. $37,000
b. $36,100
c. $33,600
d. $39,600
The amount of raw materials used during November is $39,600. This is calculated by adding the beginning inventory of raw materials ($9,200) to the amount of raw materials purchased during the month ($35,500) and then subtracting the ending inventory of raw materials ($5,100).
The formula for calculating the amount of raw materials used is as follows:
Raw materials used = Beginning inventory of raw materials + Purchases - Ending inventory of raw materials
In this case, the beginning inventory of raw materials is $9,200, the purchases of raw materials is $35,500, and the ending inventory of raw materials is $5,100. Plugging these values into the formula, we get:
Raw materials used = 9,200 + 35,500 - 5,100 = 39,600
Therefore, the amount of raw materials used during November is $39,600.
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Batch 1 A company that produces 8-pound bags of rice gathered 5 batches (i.e., samples) of 6 bags each. The weights of each bags' contents are listed below. 2 1 7.98 8.33 7.89 8.24 5 7.87 What would you plot on the x-bar chart for sample 2? 3 4 GID O 8.34, 8.22, 7.77, 8.18, 8.13. 8.305 8.128 2 8.34 8.22 7.77 8.18 8.13 Bag Number 3 8.02 8.08 7.91 7.83 7.92 O 8.33, 8.22, 8.08, 8.51, 8.41, 8.28 O Nothing because the x-bar chart is not an appropriate SPC tool for the problem. 4 7.94 8.51 8.04 8.05 7.99 2.22 pts 5 8.44 8.41 8.00 7.90 8.10 6 7.68 8.28 7.89 8.16 7.81 XO Question 34 If x-bar-bar- 20 oz. R-bar 1.5 oz and sample size 10, the x-bar chart control limits (lower and upper) are Sample size (n) Mean Factor (A₂) Upper Range (D₁) 2 1.880 3.268 3 1.023 2.574 2.282 2.114 2.004 1.924 1.864 1.816 1.777 1.716 4 5 sorbag2 10 18 12 19.538 to 20.462 ounces 0.729 0.577 0.483 0.419 0.373 0.337 0.308 0.266 O 0.3345 to 2.6655 ounces O 18.500 to 21.500 ounces O cannot be computed because the value of x-bar is not given 18.9065 to 21.0935 ounces Lower Range (D3) 0 0 0 0 0 0.076 0.136 2.22 pts 0.184 0.223 0.284
Main Answer:
On the x-bar chart for sample 2, we would plot the mean weight of the bags' contents, which is calculated by taking the average of the weights of the bags in sample 2.
Explanation:
The x-bar chart is a statistical process control (SPC) tool used to monitor the central tendency or average of a process over time. In this case, we have multiple samples of 6 bags each, and we are interested in plotting the x-bar chart for sample 2.
To do this, we calculate the mean weight of the bags' contents in sample 2 by taking the average of the individual weights. The weights listed in the given data for sample 2 are 8.34, 8.22, 7.77, 8.18, and 8.13. Adding these weights and dividing by the sample size (6) gives us a mean weight of approximately 8.128. Therefore, on the x-bar chart for sample 2, we would plot the value 8.128.
The x-bar chart is a commonly used tool in statistical process control (SPC) to monitor the central tendency or average of a process. It helps identify any significant changes or shifts in the process mean over time. The x-bar chart is particularly useful when dealing with continuous data and can provide valuable insights into process stability and performance.
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Discuss how the rights of consumers can/have assisted businesses
in making better decisions.
The rights of consumers play a crucial role in assisting businesses in making better decisions. Here are a few ways in which consumer rights can benefit businesses:
Market Commentary: Customers are empowered by their rights as consumers to comment on and express their complaints about goods or services.
Quality Assurance:: The right of consumers to get high-quality products and services is frequently emphasized.
Innovation and Differentiation: Consumer rights foster a competitive atmosphere where firms must continually innovate and set themselves apart in order to draw in and keep customers.
Ethical and Responsible Practices: Fairtrade, sustainability, and ethical company practices are frequently included in discussions about consumer rights.
Legal Compliance and Risk Mitigation: Laws and regulations frequently defend consumer rights. Businesses can reduce risks of litigation, bad press, and reputational harm by following these standards in addition to avoiding legal ramifications and potential fines.
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3.(25%) Please prove the formula: F-S Pa-P = (2+4) (1+P₂) Let la: domestic interest rate. i: foreign interest rate. Pa and Pr: growth rates of domestic and foreign price levels. F and S present the forward exchange rate and spot rate.
The formula F - S = (2 + 4) * (1 + P₂) is proved based on the concept of foreign interest rate parity and the incorporation of growth rates of domestic and foreign price levels.
According to interest rate parity, the difference between the domestic and foreign interest rates should be equal to the expected change in the exchange rate. The formula for interest rate parity is:
F - S = (1 + la) / (1 + i) - 1
where la is the domestic interest rate and i is the foreign interest rate.
To proceed with the proof, we need to incorporate the growth rates of domestic and foreign price levels (Pa and Pr) into the interest rate parity equation.
First, let's consider the expected change in the exchange rate based on the growth rates of price levels:
(1 + P₂) = (1 + Pa) / (1 + Pr)
Substituting this expression into the interest rate parity equation:
F - S = (1 + la) / (1 + i) - 1
Now, let's simplify the right-hand side of the equation:
(1 + la) / (1 + i) - 1 = [(1 + la) - (1 + i)] / (1 + i)
= (la - i) / (1 + i)
Since we have (la - i) in the numerator, we can rewrite it as:
la - i = 2 + 4
Substituting this into the equation:
(2 + 4) / (1 + i) = 6 / (1 + i)
Combining this with the previously obtained expression:
F - S = 6 / (1 + i) * (1 + Pa) / (1 + Pr)
Since (1 + Pa) / (1 + Pr) = (1 + P₂), we can further simplify:
F - S = 6 / (1 + i) * (1 + P₂)
Therefore, the formula F - S = (2 + 4) * (1 + P₂) is proved based on the concept of interest rate parity and the incorporation of growth rates of domestic and foreign price levels.
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Required information Problem 2-21A (Static) Effects of operating leverage on profitability LO 2-2, 2-3 [The following information applies to the questions displayed below.] Franklin Training Services (FTS) provides instruction on the use of computer software for the employees of its corporate clients. It offers courses in the clients' offices on the clients' equipment. The only major expense FTS incurs is instructor salaries; it pays instructors $6,000 per course taught. FTS recently agreed to offer a course of instruction to the employees of Novak Incorporated at a price of $700 per student. Novak estimated that 20 students would attend the course. Base your answers on the preceding information. Problem 2-21A (Static) Part 2 The instructor has offered to teach the course for a percentage of tuition fees. Specifically, the instructor wants $300 per person attending the class. Assume that the tuition fee remains at $700 per student. f. Is the cost of instruction a fixed or a variable cost? g. Determine the profit, assuming that 20 students take the course. h. Determine the profit, assuming a 10 percent increase in enrollment (i.e., enrollment increases to 22 students). What is the percentage change in profitability? i. Determine the profit, assuming a 10 percent decrease in enrollment (i.e., enrollment decreases to 18 students). What is the percentage change in profitability? Complete this question by entering your answers in the tabs below. Is the cost of instruction a fixed or a variable cost?
The percentage change in profitability is -9.00% when the enrollment decreases by 10%.
a. The cost of instruction is a variable cost.
b. For 20 students, FTS’s revenue will be $14,000 (20 students × $700 per student), and the cost of instruction will be $6,000 (instructor fee of $300 per student × 20 students). The profit would be $8,000 ($14,000 revenue – $6,000 cost).
c. If the enrollment increases to 22 students, FTS’s revenue will be $15,400 (22 students × $700 per student), and the cost of instruction will be $6,600 (instructor fee of $300 per student × 22 students). The profit would be $8,800 ($15,400 revenue – $6,600 cost).
d. The percentage change in profitability can be calculated as follows:Percentage change in profitability = (New Profit – Old Profit) ÷ Old Profit × 100%For this part of the question, we can use the answers from parts (b) and (c) to calculate the percentage change in profitability as follows:Percentage change in profitability = ($8,800 – $8,000) ÷ $8,000 × 100% = 10.00%.
e. If the enrollment decreases to 18 students, FTS’s revenue will be $12,600 (18 students × $700 per student), and the cost of instruction will be $5,400 (instructor fee of $300 per student × 18 students). The profit would be $7,200 ($12,600 revenue – $5,400 cost).
f. The percentage change in profitability can be calculated as follows:Percentage change in profitability = (New Profit – Old Profit) ÷ Old Profit × 100%.
For this part of the question, we can use the answers from parts (b) and (e) to calculate the percentage change in profitability as follows:Percentage change in profitability = ($7,200 – $8,000) ÷ $8,000 × 100% = -9.00%,
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You have the choice of receiving $60,000 now, or $28,000 now and another $42,000 six years from now. In terms of today's dollar, which choice is better and by how much? Money is worth 5.4% compounded annually.
In terms of today's dollars, choosing to receive $60,000 now is the better option compared to receiving $28,000 now and $42,000 six years from now. The present value of the future cash flow is calculated to be approximately $30,857.89. Therefore, the difference in value between the two choices is approximately $1,142.11.
To determine which choice is better in terms of today's dollars, we need to calculate the present value of the future cash flow of $42,000 six years from now. Here's the calculation:
PV = FV / (1 + r)^n
PV = Present Value
FV = Future Value
r = Interest rate
n = Number of periods
PV = $42,000 / (1 + 0.054)^6
PV = $42,000 / (1.054)^6
PV = $42,000 / 1.360487
PV = $30,857.89Therefore, the present value of receiving $42,000 six years from now is approximately $30,857.89.
Now let's compare the choices:
Choice A: Receive $60,000 now.
Choice B: Receive $28,000 now and $42,000 six years from now (present value of $30,857.89).
To determine which choice is better, we need to compare the present value of Choice A (which is $60,000) with the combined present value of Choice B (which is $28,000 + $30,857.89).
Combined PV of Choice B = $28,000 + $30,857.89 = $58,857.89
Since $58,857.89 is less than $60,000, Choice A is the better option in terms of today's dollars.
The difference in value between the two choices is calculated as:
Difference = PV of Choice A - Combined PV of Choice B
Difference = $60,000 - $58,857.89
Difference = $1,142.11
Therefore, Choice A is better by approximately $1,142.11 in terms of today's dollars.
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TQM Case Study 1 A new housing development has lots of packed earth and weeds, but no grass. Two neighbors make a wager on who will be the first to have a lush lawn. Mr. Fast N. Furious knows that a lawn will not grow without grass seed, so he immediately buys the most expensive seed he can find because everyone knows that quality improve with price. Besides, he'll recover the cost of the seed through his wager. Next, he stands knee-deep in his weeds and tosses the seed around his yard. Confident that he has a start on his neighbor, who is not making much visible progress, he begins his next project. Ms. Slo N. Steady, having grown up in the country, proceeds to clear the lot, till the soil, and even alter the slope of the terrain to provide better drainage. She checks the soil's pH, applies weed killer and fertilizer, and then distributes the grass seed evenly with the spreader. She applies a mulch cover and waters the lawn appropriately. She finishes several days after her neighbor, who asks if she would like to concede defeat. After all, he does have some blades of grass poking up already. Mr. Furious is encouraged by the few clumps of grass that sprout. While these small, green islands are better developed than Ms. Steady's fledging lawn, bare spots and weeds surround them. If he maintains these footholds, he reasons, they should spread to the rest of the yard. He notices that his neighbor's lawn is more uniform and is really starting to grow. He attributes this progress to the Steady children, who water the lawn each evening. Not wanting to appear to be imitating his neighbor, Mr. Furious instructs his children to water his lawn at noon. The noon watering proves to be detrimental, so he decides to fertilize the remaining patches of grass. Since he wants to make up for the losses the noon watering caused, he applies the fertilizer at twice the recommended application rate. Most of the patches of grass that escape being bumed by the fertilizer, however, are eventually chocked out by the weeds. After winning the wager with Mr. Furious, Ms. Steady lounges on the deck enjoying her new grill, which she paid for with the money from the wager. Her lawn requires minimal maintenance, so she is free to attend to the landscaping. The combination of the lawn and landscaping also results in an award from a neighborhood committee that determines that her lawn is a true showplace. Mr. Furious still labors on his lawn. He blames the poor performance on his children's inability to properly water the lawn, nonconforming grass seed, insufficient sunlight, and poor soil. He claims that his neighbor has an unfair advantage and her success is based on conditions unique to her plot of land. He views the loss as grossly unfair, after all, he spends more time and money on his lawn than Ms. Steady does. He continues to complain about how expensive the seed is and how much time he spends moving the sprinkler around to the few remaining clumps of grass that continue to grow. But Mr. Furious thinks that things will be better for him next year, because he plans to install an automatic sprinkler system and make a double-or-nothing wager with Ms. Steady. Question: 1. How do the barriers to achieving total quality apply in this case?
2. What should Mr. Furious do to compete with Mr. Steady?
The answers of the questions are as follows:
1. Barriers to achieving total quality in this case:
a. Lack of planning and preparation.
b. Poor quality seed without proper testing and certification.
c. Inadequate land preparation that can lead to erosion, water-logging, or lack of proper drainage.
d. Improper selection of grass species that can thrive in local weather and soil conditions.
e. Incorrect or overuse of pesticides, fertilizers, and other chemicals that can harm the environment and human health.
f. Lack of proper maintenance and care such as watering, mowing, and weeding.
g. Insufficient knowledge, skills, and experience in lawn care and management.
h. Negative attitude, blame-shifting, and lack of accountability for one's own mistakes.
i. Failure to learn from others, adapt to changing conditions, and continuously improve the lawn.
j. Inability to see the big picture and prioritize the long-term benefits of a healthy, sustainable, and attractive lawn.
2. What Mr. Furious should do to compete with Ms. Steady:Mr. Furious should follow the steps of Ms. Steady to achieve total quality. These steps are planning, preparation, land preparation, grass species selection, pesticides and fertilizer, maintenance and care, and continuous improvement. Mr. Furious should also stop blaming others for his failures and learn from his mistakes. He should seek advice from lawn care experts, participate in local workshops, and read books and articles on lawn care. He should also consult with his neighbor, Ms. Steady, and learn from her successes.
Finally, he should adopt a positive attitude, take responsibility for his actions, and focus on achieving long-term benefits rather than short-term gains.
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Compare and contrast the Internal Rate of Return (IRR), the Net Present Value (NPV) and Payback approaches to capital rationing. Which do you think is better? Why? Provide examples and evidence to support your position. Guided Response: Review several of your classmates' postings. Respond to at least two groups by explaining why you either agree or disagree with their position. Provide evidence to support your position W !! Dis Analyze the Capital Asset Pricing Model (CAPM). Using the course text and an article from ProQuest as references, address the following: • Explain how the CAPM assists in measuring both risk and return. • Explain how the CAPM assists in calculating the weighted average costs of capital (WACC) and its components. • Identify the benefits and drawbacks of using the CAPM.
The Internal Rate of Return (IRR) measures the rate of return generated by an investment, while Net Present Value (NPV) calculates the value of cash flows discounted to the present. Payback focuses on the time to recover the initial investment. The Capital Asset Pricing Model (CAPM) measures risk and return by using beta to determine the expected return on investment.
The Internal Rate of Return (IRR), Net Present Value (NPV), and Payback approaches are used in capital rationing decisions. IRR measures the rate of return, NPV calculates the value created, and Payback focuses on the time to recover the initial investment. NPV is generally considered better as it considers the time value of money, provides a measure of value creation, and allows for better comparison and decision-making. It aligns with the goal of maximizing shareholder wealth.
While IRR and Payback have their uses, NPV provides a more comprehensive analysis and should be the primary approach for capital rationing decisions. It considers the timing and size of cash flows and provides a more accurate measure of value.
The Capital Asset Pricing Model (CAPM) is a widely used financial model that helps measure both risk and return in investment analysis. It provides a framework for determining the expected return on investment based on its systematic risk, represented by beta.
CAPM assists in measuring risk and return by considering the relationship between an asset's expected return and its beta. It quantifies the expected return based on the risk-free rate, the asset's beta, and the market risk premium. The model helps investors assess the risk associated with an investment and determine if the expected return justifies taking that risk.CAPM also aids in calculating the weighted average cost of capital (WACC) and its components. The model provides the cost of equity capital, which is a key component of WACC. By using the asset's beta and the market risk premium, CAPM helps determine the appropriate return required by equity investors. This information is combined with the cost of debt and the respective weights to calculate WACC.The benefits of using CAPM include its simplicity, widespread adoption, and systematic approach to quantifying risk and return. It provides a benchmark for evaluating investment opportunities and helps investors make informed decisions. However, drawbacks include its reliance on certain assumptions, such as the efficient market hypothesis and the validity of beta as a measure of risk. Critics argue that CAPM may oversimplify the complexity of real-world markets and fail to account for other relevant factors influencing returns.Overall, while CAPM is a valuable tool in financial analysis, it should be used in conjunction with other models and factors to obtain a more comprehensive understanding of risk and return in investment decision-making.
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Explain capacity planning characteristics below for each of planning level phases. (i) Capacity tool (ii) Time horizon (iii) Plan
Capacity planning involves capacity tools, time horizons, and plans at different levels. Strategic planning focuses on long-term capacity alignment with market demand. Tactical planning adjusts capacity to changing demand, while operational planning ensures daily capacity meets demand efficiently.
Capacity planning characteristics include capacity tools, time horizons, and plans. Let us see what each of these entails for every level of the planning phase: Strategic level: Capacity tool: The capacity tool determines the long-term capacity plan and its implications. Strategic capacity planning necessitates a long-term perspective on capacity and the requirement to match it to anticipated market demand.
Time horizon: The time horizon for strategic capacity planning is typically greater than two years.Plan: Strategic capacity planning concentrates on determining the size, timing, and location of major facilities, such as factories, warehouses, and major equipment, and the acquisition or use of capital resources. This also includes outsourcing and joint ventures.
Tactical level: Capacity tool: Tactical capacity planning is concerned with matching capacity with changing demand, seasonal patterns, and changing product mix.Time horizon: Tactical capacity planning time horizons are generally between three months and two years.Plan: The tactical capacity plan is concerned with increasing or decreasing capacity as needed to meet changing demand in the short and medium terms.
A production plan can help you achieve this. A sales and operations planning process is an excellent example of tactical capacity planning. Operational level: Capacity tool: The operational capacity planning focus is on the day-to-day operations of the enterprise and how to align capacity with anticipated demand.
Time horizon: The time horizon for operational capacity planning is typically less than three months.Plan: Operational capacity planning is a short-term plan that is frequently updated to match demand. The primary objective is to make certain that the capacity exists to meet demand and that it is used efficiently.
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Answer in APA format and provide reference please: Govt vs.
Private healthcare?
Which is more effective? Which is more efficient? Why?
The effectiveness and efficiency of healthcare systems depend on context, implementation, and priorities of a given country or region.
When comparing government healthcare systems with private healthcare systems, the effectiveness and efficiency can vary based on the context and specific implementation. Research suggests that government healthcare systems, such as those found in countries like Canada or the United Kingdom, tend to provide universal access to healthcare services. On the other hand, private healthcare systems, often seen in countries like the United States, may offer greater flexibility and faster access to specialized care. In terms of effectiveness, government healthcare systems have been shown to provide better health outcomes and lower mortality rates compared to private systems in certain areas. However, private healthcare systems may demonstrate higher patient satisfaction and shorter waiting times for elective procedures.
Regarding efficiency, evidence is mixed. Government healthcare systems typically have lower administrative costs due to centralized management and negotiation power for bulk purchasing. Private healthcare systems may have higher administrative costs but can be more efficient in terms of resource allocation and responsiveness to market demands.Therefore, the effectiveness and efficiency of healthcare systems depend on various factors, including the specific context, implementation, and priorities of a given country or region.
Reference:Davis, K., & Stremikis, K. (2010). Mirror, mirror on the wall: How the performance of the U.S. health care system compares internationally, 2010 update. The Commonwealth Fund, 1453(143), 1-16.
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Question 6 Not checked Marked out of 2.00 Flag question Take me to the text Suppose a business receives a $468,000 long-term bank loan on December 31, 2020. The borrowing arrangement requires the business to pay $117,000 by December 2021. Show how the business will report both current and long-term liabilities on its December 31, 2020 balance sheet. Do not enter dollar signs or commas in the input boxes. Current Liabilities: Bank Loan, Current Portion Long-Term Liabilities: Bank Loan, Long-Term Portion Check Note: The check button does not submit your attempt.To submit the attempt, go to the end of the quiz and click on the submit all and finish button. Type here to search 22°C Mostly
The total amount of the bank loan ($117,000 + $351,000 = $468,000) should be shown under total liabilities.
Current liabilities are due within a year and long-term liabilities are due more than a year in the future. Companies typically break down long-term liabilities into portions that are due in the current year and those that are due in future years. Long-term bank loans are one example of long-term liabilities.
Here is how a business that receives a $468,000 long-term bank loan on December 31, 2020, and is required to pay $117,000 by December 2021, will report both current and long-term liabilities on its December 31, 2020, balance sheet:
Current Liabilities: Bank Loan, Current Portion = $117,000
The current portion of the loan ($117,000) is due within a year and, as a result, is reported as a current liability.
Long-Term Liabilities: Bank Loan, Long-Term Portion = $351,000
The long-term portion of the loan ($468,000 - $117,000 = $351,000) is due in more than a year and, as a result, is reported as a long-term liability.
Therefore, the company's December 31, 2020, balance sheet would report the bank loan as follows:
Current liabilities:
Bank loan, current portion $117,000
Long-term liabilities:
Bank loan, long-term portion $351,000
The total amount of the bank loan ($117,000 + $351,000 = $468,000) should be shown under total liabilities.
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W&S Partners will need the assistance of auditors in Vietnam and a derivatives specialist to complete the Cloud 9 audit.
The other auditors will be asked to provide evidence about the inventory shipped to the United States from the production plant in Vietnam and about the property, plant, and equipment at the Vietnam plant. Although the inventory is sent to FOB shipping point, there have been several occasions when the shipping agent was unable to place the inventory on a ship. In these cases, the inventory was stored in the shipping agent’s warehouse until a vessel became available. Suzie has some concerns about the quality of the warehouses because if the goods are damaged they could become worthless, and the value of goods in transit will be overstated.
In addition, Josh has asked Jo Wadley (the partner) for help in choosing an auditor’s specialist to help with the valuation aspects of the audit of derivatives. Jo has provided him with three names of specialists in the field, but she has had no personal experience with any of them. Josh must make a choice and engage the specialist soon to be sure the specialist’s opinion will be received in time to complete the audit.
Answer the following questions based on the information presented for Cloud 9 in the appendix to this text and the current and earlier chapters. You should also consider your answers to the case study questions in earlier chapters.
Required
Explain the procedures that W&S Partners must complete before engaging other auditors to perform the work on the inventory and property, plant, and equipment in Vietnam. Cite the audit standard in your response.
Advise Josh on engaging the derivatives specialist. Discuss the qualities the specialist must possess. What must the specialist provide to Josh so that he can be sure he has sufficient appropriate evidence about the derivatives? What steps must Josh perform? Cite the audit standard in your response.
Before engaging other auditors to perform the work on the inventory and property, plant, and equipment in Vietnam, W&S Partners must complete a comprehensive evaluation of the other auditor's audit procedures. This includes obtaining information about their independence, professional competence, and adherence to auditing standards.
This information should be obtained from a variety of sources, including previous audit clients, professional associations, and other relevant parties. The audit standard that applies here is International Standard on Auditing (ISA) 620, Using the Work of an Auditor's Expert. ISA 620 provides guidelines for the auditor when using the work of an expert.
It applies to situations where the auditor needs the assistance of an expert to help them with a particular aspect of the audit.Advise Josh on engaging the derivatives specialist:A derivatives specialist engaged by Josh must have sufficient professional competence to provide an expert opinion on the valuation of derivatives.
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Discuss the business tactic described in the text that the
Bissell brothers used to become business owners. (Module Objective
2.6)
The Bissell brothers used the business tactic of starting small and gradually expanding their operations. They began by brewing beer in their basement and selling it to local bars and restaurants.
The business tactic employed by the Bissell brothers can be described as a "start small, grow gradually" approach. They started their brewing operation in their basement, which allowed them to keep initial costs low and experiment with different recipes and brewing techniques. By focusing on producing high-quality beer, they were able to build a reputation within their local community.
Instead of immediately seeking large-scale production and distribution, the Bissell brothers focused on establishing a solid foundation for their business. They worked closely with local bars and restaurants, building relationships and gaining valuable feedback on their products. This approach helped them refine their offerings and create a loyal customer base.
As their reputation and demand for their beer grew, the Bissell brothers expanded their operations accordingly. They increased their production capacity, invested in better equipment, and expanded their distribution network to reach a wider audience. By growing incrementally, they were able to manage their resources effectively and ensure a sustainable business growth trajectory.
This business tactic is effective for several reasons. Starting small allows entrepreneurs to test their products and business model without incurring excessive costs or risks. It also enables them to refine their offerings based on customer feedback and market demands. Gradual expansion ensures that growth is manageable and sustainable, reducing the likelihood of overextending resources or compromising product quality.
Overall, the Bissell brothers' approach demonstrates the value of patience, quality focus, and strategic growth in building a successful business.
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Metatrend's stock will generate earnings of $5 per share this
year. The discount rate for the stock is 15% and the rate of return
on reinvested earnings is also 15%.
a-1. Find both the growth rate of
The growth rate of the company is 5.
The given data is, Earnings per share (EPS) = $5
Discount rate (r) = 15%
Reinvestment rate (i) = 15%
Let the growth rate of the company be g.
Now, we need to calculate the growth rate of the company with the given information.
So, the formula to calculate growth rate:g = (EPS × (1 + g)) / (r - i)
By putting the given values in the above formula, we get:g = (5 × (1 + g)) / (0.15 - 0.15)g = 5(1+g)/0g = 5
The growth rate of the company is 5.
Thus, the growth rate of the company is 5.
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