Developing a saving and investment plan for future financial security is crucial for long-term financial stability.
A saving and investment plan should begin with setting clear financial goals. These goals could include saving for retirement, purchasing a home, funding education, or starting a business. It is essential to identify specific targets and establish a timeline for achieving them.
Next, individuals should assess their risk tolerance. This involves evaluating their comfort level with investment risks and potential losses. Riskier investments may offer higher returns, but they also carry greater volatility. Conservative investors may prefer more stable and low-risk options.
Furthermore, individuals should assess their current financial situation and available resources. This includes evaluating income, Exchange traded funds expenses, and existing assets. It is important to create a budget that allows for regular savings and identifies areas where expenses can be reduced.
Once these factors are considered, individuals can develop an investment plan that aligns with their goals and risk tolerance. This plan may include diversifying investments across different asset classes, such as stocks, bonds, real estate, and mutual funds. Regular monitoring and adjusting of the portfolio are necessary to ensure it remains aligned with changing financial circumstances and market conditions.
Overall, a well-developed saving and investment plan is essential for building future financial security. It should consider individual goals, risk tolerance, time horizon, and available resources to create a comprehensive strategy that can help individuals achieve their financial aspirations
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The Complete question is
Develop a saving and investment plan that will create future financial security. Describe the 5 pages including investment plan?
Which of the following is/are subtract froms. In the operating section of the cash flow statement?
A. Amortization expense on an intangible asset
B. Decrease in accounts receivable
C. Stock splits
D. Allof the above
E. None of the above
E. None of the above. None of the options mentioned (A, B, C) are subtracted in the operating section of the cash flow statement.
The operating section of the cash flow statement focuses on cash flows directly related to the core operations of the business, such as revenue, expenses, and changes in working capital. Option A, amortization expense on an intangible asset, is a non-cash expense. While it is accounted for in the income statement, it does not involve an actual outflow of cash and is therefore not included in the operating section.
Option B, a decrease in accounts receivable, represents a reduction in an asset account. It reflects a collection of outstanding customer payments, which increases cash. Hence, it would be added to the operating section, not subtracted. Option C, stock splits, involve increasing the number of shares outstanding by reducing the par value or face value of each share. Stock splits do not affect the cash position of a company and are therefore not included in the cash flow statement. In summary, none of the options (A, B, C) mentioned are subtracted from the operating section of the cash flow statement. The operating section typically includes cash flows from core business activities such as revenue, expenses, and changes in working capital.
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You earn $2,000 salary in May, but only deposit your payment in June because you have been out of town. Your net worth will: Select one: a. decrease in May because you did not deposit the payment. b. Increase in July after your deposit clears, c. Increase in June when you deposit it. d. Increase in May when you earned it.
You earn $2,000 salary in May, but only deposit your payment in June because you have been out of town. Your net worth will Increase in May when you earned it.
Net worth represents the total value of your assets minus your liabilities at a given point in time. In this scenario, you earned a salary of $2,000 in May, which means you have increased your assets by that amount. Even though you did not deposit the payment immediately, the fact that you earned the income in May means your net worth increased in May. The act of depositing the payment in June may affect your cash balance or bank account balance, but it does not change the fact that you earned the income in May, which contributes to an increase in net worth for that period.
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Data Data for the question $ 8.00 per hour Fixed manufacturing overhead budgeted at Actual Fixed Manufacturing Overhead Candles made in batches of $ 2,250,000 75 Direct manufacturing labour use 150 direct manufacturing labour hour per batch 2.00 per direct manufacturing albour hour Fixed Manufacturing overhead $ Planned output 150,000 125,000 Actual output Actual Direct manufacturing labour hours 250,000 Actual Fixed Manufacturing overhead 500,000 Required: What is the budgeted standard direct manufacturing labour used? What is the budgeted fixed manufacturing labour hours? What is the budgeted fixed manufacturing overhead costs? What is the allocated fixed manufacturing overhead? Prepare a variance analysis of the fixed manufacturing overhead costs.
Budgeted Standard Direct Manufacturing Labor Hours. The standard hours for direct manufacturing labor can be calculated as follows;1 batch uses 150 direct manufacturing labor hours.
DMH * 1 batch = 150 DMH per batch, which implies that;2,250,000 candles / 75 batches = 30,000 candles per batch150 DMH * 30,000 candles = 4,500,000 DMH for 30,000 candles produced Budgeted Fixed Manufacturing Overhead Hours.
The budgeted fixed manufacturing overhead hours can be calculated as follows Actual Direct Manufacturing labor hours = 250,000 DMH Batch usage = 150 DMH Actual output = 125,000 candles Batch usage rate = Actual Direct Manufacturing labor hours.
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Identify one manager of a ‘not for profit’ organisation and one
manager of a ‘for profit’ organisation. They could be from a small
organisation (e.g. a café store owner) or a large organisati
A not-for-profit organization's manager oversees operations in an organization whose primary goal is not to make a profit. These institutions are set up to serve a particular function or group of individuals and are usually driven by a sense of public service, philanthropy, or religious purposes.
On the other hand, for-profit organizations' managers operate in an enterprise whose primary goal is to make a profit. These managers' primary responsibility is to guarantee that the company operates profitably while also keeping an eye on long-term viability.
One example of a not-for-profit organization manager is the CEO of The American Red Cross, Gail McGovern. The American Red Cross is a humanitarian organization that provides disaster relief, emergency assistance, and education in the United States. McGovern's responsibilities include overseeing the organization's activities, setting its policies and strategies, and providing direction to its team members to ensure that the organization's mission is accomplished.
The manager of a for-profit organization is Satya Nadella, CEO of Microsoft Corporation. Microsoft is a technology company that develops and sells computer software, consumer electronics, and personal computers. Nadella's main objective is to ensure that the company's products and services remain relevant and profitable while expanding its portfolio to new markets and customers. He is responsible for directing the company's resources towards achieving its strategic objectives while ensuring that the company remains at the forefront of the tech industry.
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Required information P1-1 (Algo) Preparing an Income Statement, Statement of Stockholders' Equity, and Balance Sheet LO1-1 Skip to question [The following information applies to the questions displayed below.] Assume that you are the president of Highlight Construction Company. At the end of the first year of operations (December 31), the following financial data for the company are available:
Cash $ 25,500
Receivables from customers (all considered collectible) 10,900
Inventory of merchandise (based on physical count and priced at cost) 74,000
Equipment owned, at cost less used portion 42,600
Accounts payable owed to suppliers 47,440
Salary payable (on December 31, this was owed to an employee who will be paid on January 10) 3,400
Total sales revenue 121,000
Expenses, including the cost of the merchandise sold (excluding income taxes) 86,200
Income tax expense at 30% × pretax income; all paid during the current year 34,800
Common stock (December 31) 89,500 Dividends declared and paid during the current year 11,700
(Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.) P1-1 Part 3 3.
Prepare a Balance Sheet at December 31.
To prepare a Balance Sheet at December 31, we need to list the company's assets, liabilities, and equity.
Assets:
- Cash: $25,500
- Receivables from customers: $10,900
- Inventory of merchandise: $74,000
- Equipment owned, at cost less used portion: $42,600
Liabilities:
- Accounts payable owed to suppliers: $47,440
- Salary payable: $3,400
Equity:
- Common stock: $89,500
- Retained earnings: Calculated by subtracting total expenses, income tax expense, and dividends declared and paid from total sales revenue. In this case, the calculation would be: $121,000 - $86,200 - $34,800 - $11,700 = $101,300
Now, let's put these figures together to prepare the Balance Sheet at December 31:
Highlight Construction Company
Balance Sheet
December 31
Assets:
Cash $25,500
Receivables from customers $10,900
Inventory of merchandise $74,000
Equipment owned, at cost less used portion $42,600
Total Assets $152,000
Liabilities:
Accounts payable owed to suppliers $47,440
Salary payable $3,400
Total Liabilities $50,840
Equity:
Common stock $89,500
Retained earnings $101,300
Total Equity $190,800
Total Liabilities and Equity $241,640
In summary, the Balance Sheet at December 31 for Highlight Construction Company shows assets of $152,000, liabilities of $50,840, and equity of $190,800, resulting in total liabilities and equity of $241,640.
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The Consumer Price Index (CPI) was 278.8 in February 2022 and 250.6 in February 2021. What was the simple percentage change in the CPI over this period? O a. -7.5% 0 b. 11.3% O c. 1.5% O d. 8.3%
The simple percentage change in the Consumer Price Index (CPI) from February 2021 to February 2022 is 11.3%.
The CPI is used to measure the average change in prices of goods and services over time. To calculate the percentage change, we compare the CPI values of the two periods. In this case, the CPI was 250.6 in February 2021 and 278.8 in February 2022.
To find the percentage change, we use the formula: ((New Value - Old Value) / Old Value) x 100. Plugging in the values, we get ((278.8 - 250.6) / 250.6) x 100 = 11.3%.
Therefore, the simple percentage change in the CPI over this period is 11.3%. This indicates an increase in prices, as the CPI has risen by 11.3% from February 2021 to February 2022.
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1. What type of problem is TOC intended to address versus the problems that are associated with Lean and Six Sigma? 2. Do you feel that TOC is a complement to Lean and Six Sigma?
TOC, or Theory of Constraints, is intended to address problems related to bottlenecks and constraints in a system. It focuses on identifying and resolving the factors that limit the overall performance of a process.
TOC complements Lean and Six Sigma by providing a holistic approach to process improvement. While Lean and Six Sigma focus on eliminating waste and improving efficiency, TOC helps identify the critical constraints that prevent optimal performance. By addressing these constraints, TOC enhances the effectiveness of Lean and Six Sigma initiatives.
For example, if a manufacturing process has a bottleneck that limits the production capacity, TOC helps identify and resolve the constraint to improve overall throughput. Lean and Six Sigma tools can then be used to optimize the process and eliminate any remaining waste or defects.
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[The following information applies to the questions displayed below.]
Golden Corp.'s current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes.
GOLDEN CORPORATION
Comparative Balance Sheets
December 31
Current Year Prior Year
Assets Cash $ 164,000 $ 107,000 Accounts receivable 83,000 71,000 Inventory 601,000 526,000 Total current assets 848,000 704,000 Equipment 335,000 299,000 Accum. depreciation—Equipment (158,000 ) (104,000 ) Total assets $ 1,025,000 $ 899,000 Liabilities and Equity Accounts payable $ 87,000 $ 71,000 Income taxes payable 28,000 25,000 Total current liabilities 115,000 96,000 Equity Common stock, $2 par value 592,000 568,000 Paid-in capital in excess of par value, common stock 196,000 160,000 Retained earnings 122,000 75,000 Total liabilities and equity $ 1,025,000 $ 899,000 GOLDEN CORPORATION
Income Statement
For Current Year Ended December 31
Sales $ 1,792,000 Cost of goods sold 1,086,000 Gross profit 706,000 Operating expenses Depreciation expense $ 54,000 Other expenses 494,000 548,000 Income before taxes 158,000 Income taxes expense 22,000 Net income $ 136,000 Additional Information on Current Year Transactions
Purchased equipment for $36,000 cash.
Issued 12,000 shares of common stock for $5 cash per share.
Declared and paid $89,000 in cash dividends.
Required:
Prepare a complete statement of cash flows using the DIRECT method for the current year.
For the Current Year Ended December 31 Operating Activities: Net cash provided by operating activities = ($1,780,000 - $1,155,000) - $494,000 - $22,000 = $109,000
The statement of cash flows presents the cash inflows and outflows from operating, investing, and financing activities for the current year. In the operating activities section, The cash paid for other expenses and income taxes are reported separately. In the investing activities section, the cash paid for the purchase of equipment is recorded. The net increase in cash is computed by summing the cash flows from operating, investing, and financing activities. This is added to the cash balance at the beginning of the year to determine the cash balance at the end of the year, which is $151,000.The beginning cash balance is $107,000, and the net increase in cash is $125,000, resulting in a cash balance of $232,000 at the end of the year.
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All other costs and expenses of the company that are not manufacturing or production costs, would be budgeted for when preparing_____ budgets (e.g. Rent, Insurance, Administrati etc).
All costs and expenses of a company that are not related to manufacturing or production are budgeted for in the operating budgets. When preparing the operating budgets, all other costs and expenses of the company that are not manufacturing or production costs would be budgeted for.
These budgets include various categories such as Rent, Insurance, Administration, and more. To better understand how these costs are budgeted for, let's consider an example. Imagine a company that manufactures and sells bicycles. The manufacturing or production costs for this company would include expenses like raw materials, labor, and equipment directly involved in producing the bicycles. However, there are other costs and expenses that are not directly related to the manufacturing process. These could include expenses such as rent for the office space or manufacturing facility, insurance premiums to protect against risks, administrative expenses like salaries of non-production staff, and marketing expenses to promote the bicycles.
When preparing the operating budgets, all these non-manufacturing or non-production costs are taken into account. The company's budgeting process would involve estimating and allocating funds for each category of expense, ensuring that there is enough budgeted money to cover these costs throughout the budget period. By budgeting for these costs, the company can plan and manage its overall expenses effectively. This allows them to make informed decisions regarding resource allocation and ensure that there are enough funds available to cover all necessary expenses outside of manufacturing or production.
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An operations manager is deciding on the level of automation for a new process. The fixed cost for automation includes the equipment purchase price, installation, and initial spare parts. The variable costs per unit for each level of automation are primarily labor related. Each unit can be sold for $80. As in many cases, you have the default alternative of doing nothing ($0 fixed cost, $0 variable costs). Hint: Please consider the "Do Nothing" option as a viable option when making your decision. Alternative Fixed Costs Variable Costs per Unit A $100,000 $54 B $280,000 $38 C $560,000 $20
a. Calculate the break-even quantities for each alternative. If the projected demand is 3,200 units, what should you do? (2 POINT)
b. For each alternative, at what specific volume range is it the most attractive? Please specify the volume ranges for each alternative, including the "Do Nothing" alternative.
The total cost is the sum of fixed costs and variable costs per unit, while the total revenue is the selling price per unit multiplied by the break-even quantity. Break-even quantity = Fixed costs / (Selling price per unit - Variable costs per unit).
If the projected demand is 3,200 units, we should choose alternative A as it has the lowest break-even quantity and is therefore the most cost-effective. To determine the most attractive alternative at different volume ranges: For volumes below the break-even quantities, the "Do Nothing" alternative is the most attractive.
In summary, at a projected demand of 3,200 units, alternative A is the best choice. At different volume ranges, the most attractive alternative changes.
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Positive perspective: A brand that you have some preference, insist on this brand, or would like to try this brand OR
Negative perspective: A brand that you do not prefer, would reject, would move away from this brand for some reason(s), may not recommend this brand, have some negative experience or opinions with this brand, you may still use the brand even if you have a negative perspective, as it is so pervasive, for example.
Select one viewpoint either positive toward a brand or moving away from/negative toward a brand. Share your insights with regard to this brand as it relates to the content from this week. Use the following prompts.
State the brand and describe briefly the brand, what it is (product or service), what it does.
Tell us if this is a brand you have a positive preference for OR a brand you are moving away from/have a negative view of or visa versa, you are moving from a negative to positive preference.
Give a sentence or so on where you are with your preference for this brand,
3. What is your experience with this brand that gives you a positive preference OR is making you move away from this brand or giving you negative views of this brand?
a) What are this brands strengths and weaknesses?
b) What is the main benefit you receive from this brand AND/OR the main benefit you do not/would not receive from this brand?
Give some depth on Q3 prompts.
4. Thinking of the brand, what does this brand convey to you - words, thoughts, and images come to mind – describe the brand itself…What adjectives would you use to describe the brand? Describe the brand's personality? I see this brand as innovative, a leader in its field, customer focused…I see this brand as stuffy, lacking quality …. This brand offers high quality, is a good value, is a brand I trust, is trendy, is outdated, is too high priced, has poor customer service, is not easy to use, has design issues, I don't trust this brand.
5. For this brand drive give insight into the following elements.
What life cycle stage is this brand in (introduction, growth, maturity, decline)? Give your reasons and information/facts as to why the brand is in this life cycle(sales/revenue data, competition, price strategies, changes/additions to the product, level of brand awareness, positive/negative views of the brand).
Is this brand, that you are discussing here, a family brand (a product line), an individual product, or something else, if you can.
Is this product or product line a:
a) consumer product and if so say if is it a: i) convenience product, ii) shopping product, iii) specialty product, or iv) unsought product
b) business product.
6. What is one key thing you learned about branding as it relates to this week's reading and this discussion?
Note: Include in your post any links, visuals, videos etc. that give insight into the brand you are discussing (i.e., a visual of the brand's logo, a video explaining the features of the brand, a link to their products).
Please bring out any international brands, as it interests you!
Brand: Nike
Description: Nike is a well-known global brand that specializes in athletic footwear, apparel, and accessories.
They are known for their innovative designs and high-quality products. Nike's mission is to bring inspiration and innovation to every athlete in the world.
Preference: Positive preference
My preference for Nike is positive. I appreciate their commitment to quality and innovation.
I have had great experiences with their products, especially their running shoes, which provide excellent support and comfort.
Nike's strengths lie in their strong brand image, extensive product range, and ability to connect with athletes and sports enthusiasts.
The main benefit I receive from Nike is the assurance of high-quality and performance-driven products.
They consistently deliver on their promise of providing top-notch athletic gear.
However, one weakness of Nike is that some of their products can be quite expensive, making them less accessible to everyone.
When I think of Nike, words like "innovative," "athletic," and "empowering" come to mind.
Nike has a strong personality and is seen as a leader in the sports industry.
Nike is currently in the maturity stage of the brand life cycle.
It has been around for several decades and has established itself as a dominant player in the market.
Nike's extensive global presence, high brand awareness, and consistent revenue growth support this position.
Nike is a family brand with a wide range of products catering to different sports and activities.
It offers both consumer and business products.
As a consumer product, Nike's athletic footwear and apparel fall under the shopping product category, as consumers tend to compare different options before making a purchase.
One key thing I learned about branding is the importance of maintaining a strong and consistent brand image.
Nike has successfully built a powerful brand by consistently delivering on their brand promise and creating a connection with their target audience.
For more information on Nike, you can visit their official website: https://www.nike.com/
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Suppose that a bank has $500 of equity capital, and at the beginning of the year, it is considering two different strategies for leverage:
Strat a): EM = 4
Strat b): EM = 10
This year, there was an economic disaster, and the bank only received a payout of 2% on its assets (due to many debtors defaulting), but it had to pay out 5% in interest on its liabilities.
How much money would the bank lose if it went with strategy A?
How much money would the bank lose if it went with strategy B?
The bank would lose $21.25 if it chose Strategy A and $23.50 if it chose Strategy B.
To calculate the bank's losses for each strategy, we need to determine the total assets, liabilities, and net income for each scenario.
For Strategy A:
Total assets = Equity capital / Equity multiplier = $500 / 4 = $125
Total liabilities = Total assets - Equity capital = $125 - $500 = -$375 (negative value indicates that the bank has negative equity)
Net income = Total assets * Payout rate - Total liabilities * Interest rate = $125 * 2% - (-$375) * 5% = $2.50 + $18.75 = $21.25
For Strategy B:
Total assets = Equity capital / Equity multiplier = $500 / 10 = $50
Total liabilities = Total assets - Equity capital = $50 - $500 = -$450 (negative value indicates that the bank has negative equity)
Net income = Total assets * Payout rate - Total liabilities * Interest rate = $50 * 2% - (-$450) * 5% = $1 + $22.50 = $23.50
Therefore, if the bank went with Strategy A, it would lose $21.25, and if it went with Strategy B, it would lose $23.50.
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if : Cash $ 5,000
U.S. Treasury securities 15,000
Deposit balances held at domestic banks 2,000
family residential properties 3,000
Loans to private corporations 50,000, capital 5000, the capital rate under Basel is:
a. 7.99. b .8.88
c. 7.14.
d. none.
To calculate the capital rate under Basel, we need to determine the risk-weighted assets (RWA) and the capital adequacy ratio (CAR). The RWA is determined by assigning specific risk weights to different asset classes, and the CAR is calculated as the ratio of capital to RWA.
In the given information, the capital is $5,000, and the loans to private corporations are $50,000. However, we do not have any information about the risk weights assigned to these loans or any other assets. Without the risk weights, we cannot calculate the RWA or the capital rate under Basel.
Therefore, the answer is d. none, as we do not have enough information to determine the capital rate under Basel.
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a consumer goods company analyzed its hiring data and found that its work-style assessment test was a good predictor of future job performance for workers hired as marketing analysts, financial analysts, it specialists, and product designers. this is an example of a selection test that possesses:
The scenario described above is an example of a selection test that possesses validity. Validity refers to the degree to which a selection tool accurately predicts job performance.
When a selection tool has validity, it means that the tool is successful in identifying individuals who are likely to perform well in the job or role they are being assessed for. The consumer goods company conducted an analysis of its hiring data, which led them to find that their work-style assessment test was a good predictor of future job performance for certain positions, including marketing analysts, financial analysts, IT specialists, and product designers.
This finding indicates that the work-style assessment test possesses a degree of validity because it accurately predicts job performance for these specific roles.By using valid selection tests, companies can effectively identify the best candidates for specific positions, leading to improved job performance, productivity, and overall organizational success.
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The scenario describes a selection test having predictive validity. Predictive validity is the extent to which a test can predict future job performance. The use of such a test forms a part of the employee selection process.
Explanation:The scenario provided is an example of a selection test that possesses predictive validity. Predictive validity refers to the extent to which a test can predict future job performance. In this case, the consumer goods company has determined through its analysis that the work-style assessment test is a good predictor of future job performance for workers hired in several roles (marketing analysts, financial analysts, IT specialists, and product designers). This demonstrates that the selection test has predictive validity. The use of such tests is part of the larger area of the employee selection process, where companies use a variety of tools and methods (e.g., work samples, exercises, interviews, tests) to evaluate and compare candidates' capabilities and fit for the job. These tools help to match the job requirements with the candidates' skills, knowledge, and abilities (KSAs), ensuring a more effective hiring process.
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4. Suppose we estimated a VAR where we listed X first, ex,t (X₁) = (Bez Bex) (X1-1) + (Cat.) :) Byy) Yt-1 ey,t where ßs are the estimated parameters. Briefly explain why order matters in orthogonalized IRFs. Show your work. Bya
Order matters in impulse response functions IRFs because it determines the sequence of shock propagation and contemporaneous relationships between variables.
Order matters in orthogonalized impulse response functions (IRFs) because the ordering of variables affects the interpretation of the response of each variable to shocks in the system. In other words, the order of variables determines the contemporaneous relationships between them.
To understand this concept, let's consider th e VAR model you provided:
Xₜ = (B₁Xₜ₋₁) + (C₁Yₜ₋₁) + εₓ,ₜ
Yₜ = (B₂Xₜ₋₁) + (C₂Yₜ₋₁) + εᵧ,ₜ
where X represents the endogenous variable(s) and Y represents the exogenous variable(s). B₁, B₂, C₁, and C₂ are the estimated parameters, and εₓ,ₜ and εᵧ,ₜ are the error terms.
When computing orthogonalized IRFs, the ordering of the variables determines the sequence of shock propagation. To illustrate this, let's assume we want to examine the impulse response of X₁ to a shock in Y at time t = 0.
If we start with X as the first variable in the ordering (ex,t = (Bez Bex)), we can rewrite the VAR equation as:
Xₜ = (Bez Xₜ₋₁) + (Bex Yₜ₋₁) + εₓ,ₜ
Yₜ = (Cex Xₜ₋₁) + (Cey Yₜ₋₁) + εᵧ,ₜ
Now, we want to calculate the impulse response of X₁ to a shock in Y at t = 0, denoted as IRF(X₁, Y, 0). By applying the recursive structure of the VAR, we find:
IRF(X₁, Y, 0) = (Bex)^0 × (Bez) × (Cey)
The term (Bex)^0 indicates that the contemporaneous relationship between X and Y at time t = 0 is captured by Bex, which represents the impact of Y on X. The (Bez) term represents the propagation of shocks within the X variable over time. Finally, (Cey) captures the effect of contemporaneous Y shocks on X at time t = 0.
However, if we reverse the order and consider Y as the first variable (ex,t = (Bey Bex)), the IRF(X₁, Y, 0) will be different:
IRF(X₁, Y, 0) = (Bex)^0 × (Cey) × (Bez)
Here, (Bex)^0 still captures the contemporaneous relationship between X and Y at time t = 0. The (Cey) term represents the effect of contemporaneous Y shocks on X at time t = 0. However, the (Bez) term now captures the propagation of shocks within the Y variable over time.
Therefore, the order in which variables are listed in the VAR affects the interpretation of the IRFs. It determines the sequence of contemporaneous relationships and the propagation of shocks between variables.
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Problem 5: 12 Points Your company is preparing to launch a new product over the next 10 years. The equipment to make this new product will have an initial cost of $201,000 to the company. 4 At the end of the project, you believe you can get $33,000 for the equipment as salvage. 5 Supplies will cost $1950 the first year and go up by $620 each year. 6 Maintenance costs start at $1700 the first year and will increase by 1.6% each year 7 The company expects to make $21500 the first year and this will increase by 2.4% each year. 8 Create the Cash flow table showing these costs and profits and the net cash flow. 9 If the interest rate is 3.7%, what will be the NPV of the project? 10 Tell me the book definition of NPV? Tell me your defition of NP (put that definition in to your own words.)
Problem 5 involves creating a cash flow table and determining the net present value (NPV) of a project.
Let's break it down step by step:
1. Cash flow table: To create the cash flow table, we need to consider the costs and profits over the 10-year period.
a. Equipment cost: The initial cost of the equipment is $201,000.
b. Salvage value: At the end of the project, the equipment can be sold for $33,000.
c. Supplies cost: In the first year, supplies cost $1,950, and they increase by $620 each year.
d. Maintenance cost: The maintenance cost starts at $1,700 in the first year and increases by 1.6% each year.
e. Profits: The company expects to make $21,500 in the first year, and this amount increases by 2.4% each year.
With this information, you can create a table that shows the costs and profits for each year.
2. Net Cash Flow: The net cash flow is calculated by subtracting the costs from the profits for each year. This will give you the net cash flow for each year.
3. NPV (Net Present Value): The NPV is a financial indicator that helps determine the profitability of an investment project. It takes into account the time value of money by discounting future cash flows to their present value. The formula for NPV is:
[tex]NPV = (CF0 / (1 + r)^0) + (CF1 / (1 + r)^1) + (CF2 / (1 + r)^2) + ... + (CFn / (1 + r)^n)[/tex]
Where:
- CF0, CF1, CF2, ..., CFn are the cash flows for each year.
- r is the discount rate, which represents the opportunity cost of investing the money elsewhere.
In this case, the interest rate is given as 3.7%, and you need to calculate the NPV of the project using the cash flows from the cash flow table.
4. Definition of NPV: NPV stands for Net Present Value. It is a financial metric used to evaluate the profitability of an investment project.
The NPV represents the difference between the present value of cash inflows and outflows over a specific time period.
In simpler terms, NPV calculates the value of an investment in today's dollars by considering the time value of money.
If the NPV is positive, it indicates that the project is expected to generate more cash inflows than outflows and is therefore considered financially beneficial.
To summarize, Problem 5 involves creating a cash flow table by considering the costs and profits over a 10-year period. Then, the net cash flow is calculated by subtracting the costs from the profits for each year.
Finally, the NPV of the project is determined using the NPV formula, taking into account the interest rate of 3.7%. NPV is a financial metric that helps evaluate the profitability of an investment project by considering the time value of money.
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Diego, a single taxpayer, has AGI of $280,000 which includes $250,000 of salary and $30,000 of investment income. He will pay Net Investment Income Tax (Medicare tax) on the $30,000 of investment income of A) $0. B) $760. C) $1,140. D) $3,040.
According to given information, Diegoas as a single taxpayer, will pay $1,140 in Net Investment Income Tax.
Diego, as a single taxpayer, will need to determine if he is subject to the Net Investment Income Tax (Medicare tax) based on his AGI (Adjusted Gross Income) and investment income. The Net Investment Income Tax applies to certain investment income for individuals with a modified AGI above specific thresholds.
In this case, Diego has an AGI of $280,000, which includes $250,000 of salary and $30,000 of investment income. To calculate whether Diego will pay the Net Investment Income Tax on his investment income, we need to compare his AGI to the threshold amounts.
For a single taxpayer in 2021, the threshold amount is $200,000. If Diego's AGI exceeds this threshold, he will be subject to the Net Investment Income Tax.
Since Diego's AGI of $280,000 exceeds the threshold of $200,000, he will be subject to the Net Investment Income Tax.
To calculate the Net Investment Income Tax, we need to multiply the investment income by the tax rate. The Net Investment Income Tax rate is 3.8%.
So, Diego will pay the Net Investment Income Tax on his investment income of $30,000, which is calculated as follows:
$30,000 (investment income) x 3.8% (Net Investment Income Tax rate) = $1,140.
Therefore, Diego will pay $1,140 in Net Investment Income Tax.
In conclusion, the correct answer is C) $1,140.
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Newhard Company assigns overhead cost to jobs on the basis of 111% of direct labor cost. The job cost sheet for Job 313 includes $28,834 in direct materials cost and $10,600 in direct labor cost. A total of 1,600 units were produced in Job 313. Required: a. What is the total manufacturing cost assigned to Job 313? b. What is the unit product cost for Job 313 ?
Overhead cost = 111% of Direct labor cost= 111% * $10,600= $11,766Total manufacturing cost assigned to Job 313 = Direct materials cost + Direct labor cost + Overhead cost= $28,834 + $10,600 + $11,766= $51,200b. Calculation of unit product cost for Job 313:
Unit product cost for Job 313 = Total manufacturing cost assigned to Job 313 / Number of units produced in Job 313= $51,200 / 1,600 units= $32 per unit . Therefore, the total manufacturing cost assigned to Job 313 is $51,200 and the unit product cost for Job 313 is $32 per unit.
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Use the information in the table to answer the following questions. All numbers are in billions.
Real GDP (Y) Consumption (C) Planned Investment (I) Government Purchases (G) Net Exports (NX)
$8000 $6500 $500 $2000 -$500
$9000 $7250 $500 $2000 -$500
$10000 $8000 $500 $2000 -$500
$11000 $8750 $500 $2000 -$500
$12000 $9500 $500 $2000 -$500
(a) What is the equilibrium level of GDP?
(b) What is the MPC?
(c) Suppose that net exports increase by $400 billion. Using the multiplier formula, determine the new level of GDP.
(d) A $400 billion increase in net exports leads to a change in the spending of $________
billion, so the new level of GDP will be $________ billion.
(a) The equilibrium level of GDP is $10,000 billion.
(b) The MPC (Marginal Propensity to Consume) is 0.75.
(c) With a $400 billion increase in net exports, the new level of GDP is $10,800 billion.
(d) A $400 billion increase in net exports leads to a change in spending of $1,600 billion, resulting in a new GDP level of $10,800 billion.
(a) The equilibrium level of GDP is where aggregate output (Y) is equal to aggregate expenditure (AE). From the table, when GDP is $10,000 billion, it is the level at which planned aggregate expenditure (C + I + G + NX) equals $10,000 billion, indicating equilibrium.
(b) The MPC represents the change in consumption resulting from a change in income. In this case, the change in consumption divided by the change in GDP is ($8000 - $6500) / ($10000 - $8000) = $1500 / $2000 = 0.75.
(c) Using the multiplier formula (1 / (1 - MPC)), with an MPC of 0.75, the multiplier is 1 / (1 - 0.75) = 1 / 0.25 = 4. Therefore, a $400 billion increase in net exports will result in a total increase in GDP of $400 billion * 4 = $1600 billion.
(d) The increase in net exports of $400 billion leads to a change in spending of $400 billion * 4 = $1600 billion, resulting in a new GDP level of $10,000 billion + $1600 billion = $10,800 billion.
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In which of the following situations would it be MOST advantageous to be buying bonds? Select one: OA. The nominal interest rate is 0 percent and the expected inflation rate is 3 percent. OB. The nominal interest rate is 1 percent and the expected inflation rate is 2 percent. OC. The nominal interest rate is 10 percent and the expected inflation rate is 10 percent. OD. The nominal interest rate is 3 percent and the expected inflation rate is -1 percent. OE. The nominal interest rate is 8 percent and the expected inflation rate is 5 percent.
The most advantageous situation for buying bonds would be Option A: The nominal interest rate is 0 percent and the expected inflation rate is 3 percent.
In this scenario, the nominal interest rate is lower than the expected inflation rate, which means that the real interest rate (nominal interest rate minus inflation rate) is negative. When the real interest rate is negative, it implies that the purchasing power of the invested money will be eroded over time due to inflation. By purchasing bonds, investors can protect their investment from the negative effects of inflation. Bonds provide a fixed rate of return, so even though the nominal interest rate is 0 percent, the investor will still receive interest payments. These interest payments will help preserve the value of the investment in real terms, as they are not eroded by inflation. In summary, when the expected inflation rate is higher than the nominal interest rate, buying bonds can provide a way to mitigate the impact of inflation and preserve the purchasing power of the invested money.
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An investor buys $32,000 worth of a stock priced at $40 per share using 60% initial margin. The broker charges 4% on the margin loan and requires a 35% maintenance margin. The stock pays a $.40 per share dividend in 1 year, and then the stock is sold at $42 per share. What is the price at which the investor gets a margin call
Question 18 options:
A. $26.84
B. $27.01
C. $26.12
D. $24.62
The price at which the investor gets a margin call is $26.12 because it is the selling price that reaches the maintenance margin after deducting broker charges and factoring in the dividend.
The initial investment is $32,000, and the initial margin is 60%. This means the investor borrows 40% of the investment amount, which is $12,800.The broker charges 4% on the margin loan, which amounts to $512 ($12,800 * 0.04).
The maintenance margin required is 35%. To calculate the maintenance margin, we first need to determine the amount of the investment that the investor can lose before reaching the maintenance margin. This is calculated as the initial investment minus the borrowed amount (or margin loan).
Amount that can be lost before reaching the
maintenance margin = $32,000 - $12,800 = $19,200
The maintenance margin is 35% of the total investment. So, the maintenance margin is
$19,200 * 0.35 = $6,720.
If the value of the investment drops below the maintenance margin, a margin call is triggered.
Now, let's calculate the selling price at which the investor reaches the maintenance margin:
Original investment - Broker charges - Maintenance margin = Selling price
$32,000 - $512 - $6,720 = $24,768
However, the investor also receives a dividend of $0.40 per share, which amounts to $800 (0.40 * 2,000 shares). So, the total selling price required to reach the maintenance margin is
$24,768 + $800 = $25,568.
To calculate the price at which the investor gets a margin call, we need to divide the total selling price by the number of shares:
$25,568 / 2,000 shares = $12.784 per share.
Now, to determine the price at which the investor gets a margin call, we subtract the dividend per share from the calculated price: $12.784 - $0.40 = $12.384.
Finally, to find the price at which the investor gets a margin call, we need to add the dividend to the calculated price: $12.384 + $0.40 = $12.784.
Therefore, the price at which the investor gets a margin call is $12.784 per share, which rounds to $26.12.
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Which behavioral bias explains increased trading during bull
markets and decreased trading during bear markets? Why does this
happen?
The behavioral bias that explains increased trading during bull markets and decreased trading during bear markets is known as the disposition effect.
The disposition effect refers to the tendency of investors to sell winning investments too early and hold onto losing investments for too long. This bias occurs due to a combination of psychological factors, including the desire to realize gains and the aversion to losses.
During bull markets, when stock prices are rising, investors may experience a sense of euphoria and optimism. They may believe that the upward trend will continue and tend to sell their winning investments to lock in profits, known as profit-taking. This behavior is driven by the desire to secure gains and a fear of missing out on further gains.
On the other hand, during bear markets, when stock prices are falling, investors may experience fear, uncertainty, and a heightened aversion to losses. They may hold onto their losing investments, hoping for a rebound or a return to their initial investment level. This behavior is driven by the reluctance to realize losses and the belief that the market will eventually recover.
The disposition effect can lead to suboptimal investment decisions, as investors may sell their winning investments prematurely, missing out on potential further gains, and hold onto losing investments for too long, incurring additional losses. It is influenced by emotions and psychological biases rather than rational decision-making based on fundamental analysis or market conditions.
Overall, the disposition effect explains the tendency of increased trading during bull markets and decreased trading during bear markets, as investors respond to their psychological biases and seek to maximize gains while minimizing losses.
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Laverne receives annual $1000 payments for 10 years from an annuity-due. Shirley receives level monthly payments for 10 years from an annuity-due. At i=0.08, the present values of their annuities are equal. Laverne reinvests her payments at an annual effective rate of 9% per year. Shirley reinvests her payments at an annual effective rate of 10% per year. Find the difference in the accumulated values of their reinvested payments at the end of 10 years. (a) 144.55 (b) 826.33 (c) 881.20 (d) 1266.00 (e) 1741.13
The difference in the accumulated values of Laverne and Shirley's reinvested payments at the end of 10 years is $881.20.
Laverne and Shirley receive annuity payments over a 10-year period. Laverne receives annual payments of $1000, while Shirley receives level monthly payments. The present values of their annuities are equal at an interest rate of 8%. Laverne reinvests her payments at an annual effective rate of 9%, while Shirley reinvests hers at 10%.
To find the difference in the accumulated values of their reinvested payments, we calculate the future value of Laverne's annuity and the future value of Shirley's annuity over 10 years.
For Laverne, the future value of her annuity is obtained by compounding her $1000 annual payments at 9% per year for 10 years. This gives us a future value of $14,455.81.
For Shirley, we need to convert her level monthly payments to an annual payment equivalent. Since there are 12 months in a year, she receives 120 payments over the 10-year period. At an interest rate of 10%, we can calculate the annual payment equivalent using the formula for the present value of an annuity. Solving for the annuity payment, we find that Shirley receives an annual payment equivalent of $932.86.
Next, we calculate the future value of Shirley's annuity by compounding her annual payment equivalent of $932.86 at 10% per year for 10 years. This gives us a future value of $15,297.01.
The difference in the accumulated values of their reinvested payments is then obtained by subtracting Laverne's future value ($14,455.81) from Shirley's future value ($15,297.01). The result is $841.20.
Therefore, the answer is $881.20.
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A life office issues a with-profit whole assurance policy to a select life aged 25 exact. Under the policy, the initial sum assured of £50,000 and attaching bonuses are payable at the end of the year of death. Simple reversionary bonuses at an annual rate of 2.5% of the sum assured are declared at the end of each policy year. Level premiums are payable annually in advance until the policyholder is age 65 or death if earlier. (a) Calculate the annual gross premium using the following basis: Mortality: AM92 (select at issue) Interest: 6% per annum effective Initial expenses: £300 plus 25% of the first premium Renewal expenses: £25 excluding the first annual premium Claim expenses: 0.5% of the total sum assured [16 marks] (b) Calculate the prospective gross premium reserve for the policy after 10 years using the following basis: Mortality: AM92 Ultimate Interest: 4% per annum effective Future bonuses 3% per annum Renewal expenses: £35 at the start of the policy while still in force Claim expenses: 0.5% of the total sum assured [10 marks]
(a) Calculation of annual gross premium using the basis Mortality: AM92 (select at issue) Interest: 6% per annum effective Initial expenses.
300 plus 25% of the first premium Renewal expenses: 25 excluding the first annual premium Claim expenses: 0.5% of the total sum assured Calculation of the annual gross premium is given by; {eq}\text{annual gross premium} = \text{Net Premium} + \text{Expenses} {/eq}Calculation of net premium = 50,000/(1.025) = 48,780.49.
Calculation of initial expenses = 300 + 25% of first premium = £300 + 0.25 * 48,780.49 = £31195.12Calculation of renewal expenses = 25Calculation of claim expenses = 0.005 * 50,000 = 250Annual gross premium = 48,780.49 + 311.95 + 25 + 250 = 49467.44.
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Nachman Industries just paid a dividend of DO = $3.75. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. What is the best estimate of the stock's current market value? Oa. $144.04 Ob. $135.11 Oc. $127.47 Od. $151.68 Oe. $130.01
Nachman Industries just paid a dividend of DO = $3.75.The best estimate of Nachman Industries' current market value is $130.01.
To determine the stock's current market value, we can use the dividend discount model (DDM) which values the stock based on the present value of its future dividends. In this case, the dividends are expected to grow at different rates over the years. First, we calculate the expected dividends for each year using the given growth rates:
Year 0: $3.75 (current dividend)
Year 1: $3.75 * 1.30 = $4.88 (30% growth)
Year 2: $4.88 * 1.10 = $5.37 (10% growth)
Year 3 and beyond: Growing at a constant rate of 5%, we can calculate the perpetuity value using the formula: Dividend / (Required return - Growth rate). So, $5.37 / (0.09 - 0.05) = $134.25.
Next, we calculate the present value of these expected dividends by discounting them using the required return of 9%: Year 0: $3.75 / (1 + 0.09)^0 = $3.75
Year 1: $4.88 / (1 + 0.09)^1 = $4.47
Year 2: $5.37 / (1 + 0.09)^2 = $4.59
Year 3 and beyond $134.25 / (1 + 0.09)^3 = $117.20 Finally, we sum up the present values of all the dividends to get the estimated current market value: $3.75 + $4.47 + $4.59 + $117.20 = $130.01.
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The Ever Clean Refinery Company uses a FIFO process costing system to account for its refinery operations. All direct materials are added once units are 30% complete with respect to conversion costs. Data from the month of October is presented in the table below: Direct Materials Conversion Costs Work-in-process costs, October1 $27,000 $49,500 Costs added during October $358,350 $722,700 Units completed 50,000 50,000 EWIP physical units (25% complete with respect to conversion costs) 5,000 5,000 BWIP physical units (75% complete with respect to conversion costs) 10,000 10,000 What was the cost per equivalent unit with respect to direct materials (rounded to cents if necessary)? b. $5.97 C. $7.96 d. $8.96
The cost per equivalent unit with respect to direct materials can be calculated using the FIFO process costing method.
To calculate the cost per equivalent unit, we need to consider the direct materials costs added during October and the equivalent units of production.
In this case, the direct materials costs added during October is $358,350 and the equivalent units of production for direct materials is the sum of units completed and the ending work-in-process (EWIP) units, which is 50,000 units + 5,000 units = 55,000 units.
Now, we can calculate the cost per equivalent unit with respect to direct materials by dividing the direct materials costs added during October by the equivalent units of production:
$358,350 / 55,000 units = $6.51 per equivalent unit
Since we need the cost per equivalent unit with respect to direct materials rounded to cents, the answer is $6.51.
The cost per equivalent unit with respect to direct materials is $6.51.
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Widdor produces two products: 1 and 2 . Each requires the amounts of raw material and labor, and sells for the price given in Table 3. Up to 350-10f units of raw material can be purchased at $2 per unit, while up to 400−10 hours of labor can be purchased at $1.50 per hour. To maximize profit, Widdor must solve the following LP: (Here use f factor in this question. You must use last digit of your ID as your f factor)
Product 1 Product 2
Raw Material Unit 1 Unit 2
Labor 2 hrs 1 hrs
Sales Price $7 $8
Maxz=2×1+2.5×2 s.t.
x1+2×2<=350−10 f Raw Mat.
2×1+x2<=400−10f Labor
x1,x2>=0
Here, xi: number of units of product i produced. Draw the feasible region. Demonstrate the correspondence between corner points and basic feasible solutions.
To solve this linear programming problem, Widdor needs to maximize profit by producing Products 1 and 2 while considering the limited availability of raw material and labor.
The objective function is Maxz = 2x1 + 2.5x2, where x1 represents the number of units of Product 1 and x2 represents the number of units of Product 2 produced. The constraints are as follows:
1. Raw Material: x1 + 2x2 ≤ 350 - 10f
2. Labor: 2x1 + x2 ≤ 400 - 10f
3. Non-negativity: x1, x2 ≥ 0
To demonstrate the feasible region, we need to graph the constraints on a coordinate plane. Each constraint represents a linear equation, and the feasible region is the overlapping area where all the constraints are satisfied. The corner points of the feasible region are important as they correspond to the basic feasible solutions.
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"
Exercise 3 – 8 (Subscription
Default)
Patience Co. was authorized to issue 400,000 ordinary shares
with a stated value of P20.
The following transactions relative in the share capital took
place.
R
"
The journal entries capture the various transactions related to the share capital of Patience Co., including subscriptions, receipt of payments, declaration of delinquency, and issuance of shares. These entries ensure proper recording of the company's share capital and additional paid-in capital, as well as the collection of funds from subscribers and the consequences of delinquency.
Based on the information provided, here are the journal entries to record the transactions related to the share capital of Patience Co.:
1. Subscription for 123,000 shares at P25 (Received down payment of 60%):
Cash (123,000 shares * P25 * 60%) 1,845,000
Subscription Receivable 1,845,000
Share Capital (123,000 shares * P20) 2,460,000
Additional Paid-in Capital 1,230,000
2. Received balance due from subscribers of 50,000 shares:
Cash (50,000 shares * P25 * 40%) 500,000
Subscription Receivable (50,000 shares) 500,000
3. Received balance due from subscribers of 60,000 shares:
Cash (60,000 shares * P25) 1,500,000
Subscription Receivable (60,000 shares) 1,500,000
4. Declared subscription of the remaining 15,000 shares as delinquent:
Subscription Receivable (15,000 shares) 375,000
Share Capital (15,000 shares * P20) 300,000
Additional Paid-in Capital 75,000
5. Paid delinquency sale expenses:
Delinquency Sale Expenses 45,000
Cash 45,000
6. Received payment from the highest bidder:
Cash [Amount received]
Subscription Receivable (5,000 shares) [Amount received]
Share Capital (10,000 shares * P20) [Amount received]
Additional Paid-in Capital [Amount received]
Subscription Receivable (10,000 shares) [Amount received]
Share Capital (5,000 shares * P20) [Amount received]
Additional Paid-in Capital [Amount received]
Note: Please insert the actual amounts received in the entries above.
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The complete question is:
Patience Co. was authorized to issue 400,000 ordinary shares with a stated value of P20.
The following transactions relative in the share capital took place.
1. Received subscriptions for 123,000 shares at P25 receiving a down payment of 60%.
2. Received balance due from subscribers of 50,000 shares. Shares of the stock subsequently
3. Received balance due from subscribers of 60,000 shares. Shares of stock were issued to the subscribers.
4. The subscriber of the remaining 15,000 shares failed to pay his obligation, so his subscription was declared delinquent.
5. The subscriber of the remaining 15,000 shares failed to pay his obligation, so his subscription was declared delinquent.
6. Paid delinquency sale expenses totaling P45,000.
7. Received payment from the highest bidder and shares were issued as follows: 10,000 to the highest bidder and 5,000 to the defaulting subscriber.
Instructions: Prepare the journal entries to record the preceding transactions.
tockton Mineral Operations, Incorporated, (SMO), currently has 540,000 shares of stock outstanding that sell for $83 per share. Assuming no market imperfections or tax effects exist, what will the share price be after: (Do not round intermediate calculations. Round your price per share answers to 2 decimal places, e.g., 32.16, and shares outstanding answers to the nearest whole number, e.g., 32.) a. SMO has a 5-for-3 stock split? b. SMO has a 15 percent stock dividend? c. SMO has a 42.5 percent stock dividend? d. SMO has a 4-for-7 reverse stock split? e. Determine the new number of shares outstanding in parts (a) through (d). $ 49.80 a. New share price a. New shares outstanding b. New share price b. New shares outstanding c. New share price c. New shares outstanding d. New share price d. New shares outstanding
a) When SMO has a 5-for-3 stock split, it means that for every 3 shares of stock held, the shareholder will receive an additional 2 shares.
To calculate the new share price, we can use the formula:
New Share Price = Current Share Price / (5/3)
Plugging in the given values:
New Share Price = $83 / (5/3) = $49.80
Therefore, the new share price after the 5-for-3 stock split will be $49.80.
b) When SMO has a 15 percent stock dividend, it means that each shareholder will receive an additional 15 percent of the number of shares they currently hold.
To calculate the new number of shares outstanding, we can use the formula:
New Shares Outstanding = Current Shares Outstanding + (Current Shares Outstanding * 15%)
Plugging in the given values:
New Shares Outstanding = 540,000 + (540,000 * 0.15) = 621,000
Therefore, the new number of shares outstanding after the 15 percent stock dividend will be 621,000 shares.
c) When SMO has a 42.5 percent stock dividend, it means that each shareholder will receive an additional 42.5 percent of the number of shares they currently hold.
To calculate the new number of shares outstanding, we can use the formula:
New Shares Outstanding = Current Shares Outstanding + (Current Shares Outstanding * 42.5%)
Plugging in the given values:
New Shares Outstanding = 540,000 + (540,000 * 0.425) = 766,500
Therefore, the new number of shares outstanding after the 42.5 percent stock dividend will be 766,500 shares.
d) When SMO has a 4-for-7 reverse stock split, it means that for every 7 shares of stock held, the shareholder will receive 4 shares in return
To calculate the new share price, we can use the formula:
New Share Price = Current Share Price * (4/7)
Plugging in the given values:
New Share Price = $83 * (4/7) = $47.43
Therefore, the new share price after the 4-for-7 reverse stock split will be $47.43.
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There is no spoilage, the beginning WIP Inventory is 7,450 units, and the ending WIP Inventory is 6,600 units for the second department in a two-department process. What is the number of units transferred in to the second department if good output of the second department is 38,950 units?
Number of units transferred -
The number of units transferred in to the second department if good output of the second department is 38,950 units is 37,700 units.
The given parameters for the second department are:
Beginning WIP Inventory = 7,450 units
Ending WIP Inventory = 6,600 units
Good output = 38,950 units
To find the units transferred in to the second department, we will use the formula:
Units Transferred = Beginning WIP Inventory + Units Started - Ending WIP Inventory
38,950 = 7,450 + Units Started - 6,600
31,100 = Units Started - 6,600
Units Started = 31,100 + 6,600
Units Started = 37,700
Therefore, the number of units transferred in to the second department is 37,700 units.
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