dividends are fixed. no tax adjustments are made when calculating the cost of preferred stock.

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Answer 1

The statement "dividends are fixed, and no tax adjustments are made when calculating the cost of preferred stock" is incorrect.

In the context of finance, the cost of preferred stock is the return or yield required by investors for holding preferred shares. This cost is calculated by dividing the annual dividend payment by the market price of the preferred stock.

The key characteristic of preferred stock is that it pays a fixed dividend to shareholders. However, when calculating the cost of preferred stock, tax adjustments are indeed considered. The dividends paid on preferred stock are typically not tax-deductible for the issuing company, and investors receiving the dividends may be subject to different tax rates or tax exemptions based on their jurisdiction and tax laws.

Therefore, to accurately calculate the cost of preferred stock, the after-tax dividend payment should be used, taking into account any applicable tax adjustments or considerations.

In summary, tax adjustments are an important factor when determining the cost of preferred stock, and the statement that "no tax adjustments are made when calculating the cost of preferred stock" is incorrect.

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4. Assume that an economy is initially at the long-run equilibrium, and the
short-run aggregate supply curve is derived from the sticky-price model.
a. Use the AD-AS and Phillips curve diagram to illustrate graphically how the inflation rate
and unemployment rate respond both in the short run and in the long run to an unexpected
expansionary monetary policy.
b. Use the AD-AS and Phillips curve diagram to illustrate graphically how the inflation rate
and unemployment rate respond both in the short run and in the long run to the
announcement of a credible plan of expansionary monetary policy when people have
rational expectations.

Answers

a) The economy will move from point A to point B on the Phillips curve.

b) The Phillips curve will shift back to its original position, with the unemployment rate equal to the natural rate of unemployment, and inflation remaining at the rate expected by households and firms.

a. The long-run equilibrium is the point where the short-run aggregate supply curve and the aggregate demand curve intersect at the same time, and the unemployment rate is equal to the natural rate of unemployment. Inflation is at the rate expected by firms and households, so the economy is at potential output. If an unexpected expansionary monetary policy occurs, the aggregate demand curve shifts to the right.

In the short run, the inflation rate will increase, and the unemployment rate will fall below the natural rate of unemployment. Since wages and prices are sticky, they cannot adjust to the new level, resulting in an increase in the quantity of goods and services produced.

As a result, the economy will move from point A to point B on the Phillips curve. However, in the long run, the Phillips curve will shift back to its original position, but at a higher inflation rate, resulting in a temporary decrease in the unemployment rate.

b. Rational expectations theory suggests that people form their expectations about the future based on all available information, so when a credible plan of expansionary monetary policy is announced, people adjust their expectations accordingly. In the short run, the aggregate demand curve shifts to the right, resulting in an increase in the inflation rate and a decrease in unemployment.

The economy will move from point A to point B on the Phillips curve. However, because wages and prices are flexible, they will adjust to the new level of aggregate demand, returning the economy to potential output. As a result, the Phillips curve will shift back to its original position, with the unemployment rate equal to the natural rate of unemployment, and inflation remaining at the rate expected by households and firms.

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Selling Price per unit $20.00

Direct Material Cost per unit $6.50

Direct Labour Cost per unit $5.50

Fixed Overheads per month $16,800

Budgeted units 10,500

a) Calculate the unit contribution for product XYZ.

b) Calculate the break-even point for product XYZ.

c) Calculate the margin of safety as a %

d) Calculate how many units of product XYZ must be sold to make a profit of $12,000.

e) If overheads increase by $5,000, how many extra units of product XYZ will the company need to sell to break even?

Answers

The company would need to sell an additional 625 units of product XYZ to break even with the increased overhead costs of $5,000.

a) The **unit contribution** for product XYZ can be calculated by subtracting the variable costs (direct material cost per unit and direct labor cost per unit) from the selling price per unit.

Unit contribution = Selling price per unit - (Direct material cost per unit + Direct labor cost per unit)

Unit contribution = $20.00 - ($6.50 + $5.50)

Unit contribution = $20.00 - $12.00

Unit contribution = $8.00

b) The **break-even point** for product XYZ can be calculated by dividing the fixed overheads by the unit contribution.

Break-even point (in units) = Fixed overheads / Unit contribution

Break-even point (in units) = $16,800 / $8.00

Break-even point (in units) = 2,100 units

c) The **margin of safety** is the difference between actual sales and the break-even point, expressed as a percentage of the actual sales.

Margin of safety = (Actual sales - Break-even sales) / Actual sales * 100%

Margin of safety = (10,500 units - 2,100 units) / 10,500 units * 100%

Margin of safety = 8,400 units / 10,500 units * 100%

Margin of safety = 80%

d) To calculate the number of units of product XYZ that must be sold to make a profit of $12,000, we need to consider the fixed costs and the desired profit along with the unit contribution.

Number of units = (Fixed costs + Desired profit) / Unit contribution

Number of units = ($16,800 + $12,000) / $8.00

Number of units = $28,800 / $8.00

Number of units = 3,600 units

e) If the overheads increase by $5,000, the company will need to sell additional units of product XYZ to cover the increased costs and reach the break-even point.

Extra units to be sold = Increased overheads / Unit contribution

Extra units to be sold = $5,000 / $8.00

Extra units to be sold = 625 units

Therefore, the company would need to sell an additional 625 units of product XYZ to break even with the increased overhead costs of $5,000.

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MC Qu. 13-25 (Algo) Industries X and Y both have... Industries X and Y both have four-firm concentration ratios of 63 percent, but the Hertindahl Index for X is 1273, while that for Yis1197. These data suggest Multiple Choice greater market power in then in greater market power in the in both industries are monopolistically competitive that prke competitions onger in x than in Y

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Industry X is less competitive, and the price competition in X will be longer than in Y. The firms in both industries are monopolistically competitive.

Four-firm concentration ratios (C4) and the Herfindahl-Hirschman Index (HHI) are tools for evaluating market concentration in microeconomics. C4 measures the combined market share of the four largest firms in a market. The HHI is calculated by summing the squares of the individual firms' market shares. It ranges from zero to 10,000, with higher scores indicating greater concentration. In this case, Industries X and Y have equal four-firm concentration ratios of 63%. However, the Hertindahl Index for Industry X is 1273, while that for Industry Y is 1197. This implies that Industry X has greater market power than Industry Y, despite their equal C4 ratios.

Market power refers to a firm's ability to manipulate prices and output in a market. Firms with higher market power can charge higher prices and reduce output to maximize their profits. A high HHI score indicates that the market is more concentrated, making it easier for firms to exercise market power. Therefore, Industry X is likely more concentrated than Industry Y, giving its firms greater market power.

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In a market diagram, the height of a market demand graph at a given quantity is
Group of answer choices
the marginal external benefit from consumption.
the total benefit received from consuming at that quantity.
the marginal private benefit from consumption.
the marginal private cost of production.

Answers

The height of the market demand graph at a given quantity represents the total benefit received from consuming at that quantity while the marginal private cost of production represents the cost incurred by a firm to produce an additional unit of a good or service.

A market diagram is a graphical representation of the supply and demand for a good or service in the market. It shows the quantities that consumers are willing to purchase at different prices and the quantities that producers are willing to supply at different prices. The height of the market demand graph at a given quantity is the total benefit received from consuming at that quantity. In other words, it represents the willingness of consumers to pay for the good or service at that particular quantity. The demand curve is downward sloping, meaning that as the price of the good or service increases, the quantity demanded decreases. This is because consumers are less willing to pay higher prices for the same quantity of the good or service.On the other hand, the marginal private cost of production is the cost incurred by a firm to produce an additional unit of a good or service. This includes all the costs associated with the production process such as labor, materials, and capital. The marginal private cost curve is upward sloping, meaning that as the quantity produced increases, the cost per unit also increases. This is because as more units are produced, the firm incurs additional costs such as hiring more labor or purchasing more materials.

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[The following information applies to the questions displayed below.]
For each of the following independent situations, indicate the amount the taxpayer must include in gross income: (Leave no answer blank. Enter zero if applicable.)
a. Phil won $985 in the scratch-off state lottery. There is no state income tax.
b. Ted won a compact car worth $22,900 in a TV game show. Ted plans to sell the car next year.
c. Al Bore won the Nobel Peace Prize of $822,500 this year. Rather than take the prize, Al designated that the entire award should go to Weatherhead Charity, a tax-exempt organization.
d. Jerry was awarded $5,050 from his employer, Acme Toons, when he was selected most handsome employee for Valentine’s Day this year.
e. Ellen won a $1,160 cash prize in a school essay contest. The school is a tax-exempt entity, and Ellen plans to use the funds for her college education.
f. Gene won $660 in the office March Madness pool.

Answers

The amount the taxpayer must include in gross income is: a. Phil won $985 in the scratch-off state lottery. There is no state income tax.

Since there is no state income tax and the amount won is $985, Phil does not need to include any amount in gross income. The entire winnings are tax-free.

b. Ted won a compact car worth $22,900 in a TV game show. Ted plans to sell the car next year.

Ted must include the fair market value of the compact car in his gross income, which is $22,900. The value of the car represents a prize that Ted received and is taxable.

c. Al Bore won the Nobel Peace Prize of $822,500 this year. Rather than take the prize, Al designated that the entire award should go to Weatherhead Charity, a tax-exempt organization.

Since Al designated that the entire award should go to a tax-exempt organization, he does not need to include the Nobel Peace Prize amount in his gross income. The funds were not received by Al but instead directly transferred to the tax-exempt organization.

d. Jerry was awarded $5,050 from his employer, Acme Toons, when he was selected most handsome employee for Valentine's Day this year.

Jerry must include the amount of $5,050 in his gross income. The award he received from his employer is considered compensation and is taxable.

e. Ellen won a $1,160 cash prize in a school essay contest. The school is a tax-exempt entity, and Ellen plans to use the funds for her college education.

Ellen must include the $1,160 cash prize in her gross income. Even though the school is a tax-exempt entity and Ellen plans to use the funds for her education, the cash prize is considered taxable income.

f. Gene won $660 in the office March Madness pool.

Gene must include the $660 winnings from the office March Madness pool in his gross income. Gambling winnings, including those from informal office pools, are generally taxable.

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Juan entered in an oral contract to buy luke's vacant building for $50,000. He gave Luke a $5,000 deposit. They intended to reduce their agreement to a written contract letter. Pursuant to their oral agreement, Juan took possessions of the building and spent $30,000 making improvements so that it would be capable of being rented to the public. Due to rise in the value of similar properties, Luke served Juan with a notice to vacate the building. Luke contends the oral contract is unenforceable and that Juan must vacate the building. a. What is Luke's best argument that the contract is unenforceable? b. What arguments could Juan make to argue that the contract is enforceable? c. With whom do you agree? Why?

Answers

A. ) Luke's best argument that the contract is unenforceable is that the oral contract violates the Statute of Frauds

B) making it clear that there was an agreement between them (C) I agree with Juan that the contract is enforceable.

a. What is Luke's best argument that the contract is unenforceable?Luke's best argument that the contract is unenforceable is that the oral contract violates the Statute of Frauds which requires all contracts involving real estate to be in writing. Therefore, Luke could argue that there was never a valid contract between them and that Juan has no legal rights to the building.

b. What arguments could Juan make to argue that the contract is enforceable?Juan could argue that he has paid a deposit and also spent a substantial amount of money on making the necessary improvements to the building with the expectation that the contract would be finalized in writing. Juan can also argue that they already had an oral contract in place, and he had taken possession of the building, making Luke's argument void because of the part performance doctrine, which states that if a party has already performed part of the contract, the contract should be considered valid. Juan could also show that the work done on the building was done with the knowledge and approval of Luke, therefore making it clear that there was an agreement between them

.c. With whom do you agree? Why?I agree with Juan that the contract is enforceable. Although there was no formal contract in place, Juan had already made a deposit and had spent $30,000 improving the building. Furthermore, Luke had allowed Juan to take possession of the building and make improvements to it, which implies that there was a mutual agreement between them. Juan had shown evidence of partial performance of the contract, which is sufficient to show that the contract was valid. Additionally, it is a general principle of contract law that oral contracts are enforceable, although they may be more challenging to prove than written contracts

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when bonds are issued at a premium and the effective interest method is used for amortization, at each interest payment date, the interest expense:

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This amount is added to the interest expense to determine the total interest cost for the period.

When bonds are issued at a premium and the effective interest method is used for amortization, at each interest payment date, the interest expense is equal to the amount of interest payment minus the amortized premium. The effective interest method is a method of bond amortization. When bonds are issued at a premium, the effective interest rate is lower than the coupon rate. Therefore, the premium is amortized over the bond's life using the effective interest method. At each interest payment date, the interest expense is calculated using the effective interest rate multiplied by the carrying amount of the bond at the beginning of the period. The effective interest method applies a constant interest rate to the bond's carrying value over time. As a result, the amount of interest expense recognized each period will vary depending on the bond's carrying value. The difference between the interest expense and the interest payment is the amortization of the premium. This amount is added to the interest expense to determine the total interest cost for the period.

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What are some of GM’s resources & capabilities? are they
VRIO? Describe 6 resources/capabilities and explain whether each of
them is VRIO.

Answers

General Motors (GM) is one of the largest automotive manufacturing companies in the world.

The company has various resources and capabilities that enable it to compete effectively in the market. VRIO is an acronym that stands for valuable, rare, inimitable, and organized. It is a framework used to determine if a company's resources and capabilities are a source of sustained competitive advantage. The following are some of GM’s resources and capabilities, whether they are VRIO and why:1. Financial resources: GM has adequate financial resources that enable it to invest in research and development, acquire other companies, and invest in new technologies. This resource is valuable, rare, but not inimitable or organized. Therefore, it is VR.2. Manufacturing facilities: GM has manufacturing facilities in different countries that enable it to produce vehicles and automotive parts. This resource is valuable, rare, imitable, and organized. Therefore, it is VRIO.3. Brand reputation: GM is a well-known brand globally, and it has built a reputation for producing quality vehicles. This resource is valuable, rare, imitable, and organized. Therefore, it is VRIO.4. Experienced workforce: GM has a highly skilled and experienced workforce that enables it to design, develop, and manufacture vehicles and automotive parts.

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If a Cp < 1, then the process is not capable of meeting the statistical control limits of the process (for a centered process) True False

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The given statement, "If a Cp < 1, then the process is not capable of meeting the statistical control limits of the process (for a centered process)" is False.

Cp stands for process capability index. It is a statistical tool that compares the variation of the output of a process to the variation allowed by the process specifications. Cp less than 1 indicates that the process is not capable of meeting the specification limits of the process. However, it is still capable of meeting the statistical control limits of the process.

In other words, the process is in statistical control if it is producing output within the control limits. The process is considered to be capable if the output is within the specification limits.

Therefore, Cp < 1 means that the process is not meeting the specifications but it can still be in statistical control if it is producing output within the control limits. Hence, the given statement is False.

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2.) The trend in global business and IT strategies is towards a: (Ch.9) Inter-multinational strategy None of the Above Intra-regional structure strategy International structure strategy Transnational structure 11.) A service-oriented architecture (Ch.10) all of the listed options are correct is focused on user response. places servers closest to the primary user. is one in which the servers are supporting multiple mobile devices. enables Web services to be reused across an organization. 13.) The key graphical model of the systems requirements used with structured analysis is the (Ch. 10) flowchart class diagram project evaluation and review technique (PERT) chart user interface data flow diagram (DFD)

Answers

2.) The trend in global business and IT strategies is towards a transnational structure. This structure combines elements of both multinational and international strategies, allowing for a global approach while also adapting to local market conditions.

It emphasizes coordination and integration across different regions and markets while maintaining a level of flexibility and responsiveness. The transnational structure enables companies to leverage global resources, share knowledge and best practices, and achieve economies of scale, while also allowing for customization and adaptation to local customer needs and preferences.

11.) A service-oriented architecture (SOA) is focused on user response, places servers closest to the primary user, is one in which the servers are supporting multiple mobile devices, and enables Web services to be reused across an organization. Therefore, all of the listed options are correct. SOA is an architectural approach that promotes loose coupling and modular design by encapsulating business functionalities into reusable services. It emphasizes the responsiveness of services to user requests, the efficient delivery of services to users by placing servers closer to them, the support for multiple mobile devices, and the ability to reuse web services across the organization for increased efficiency and flexibility.

13.) The key graphical model of the systems requirements used with structured analysis is the data flow diagram (DFD). DFDs are used to represent the flow of data within a system and between different system components. They depict the inputs, outputs, processes, and data stores, showing how data moves through the system. DFDs provide a visual representation of the system's requirements, helping analysts and stakeholders understand the overall structure and behavior of the system. While flowcharts, class diagrams, and PERT charts are also used in systems analysis, the DFD is specifically associated with structured analysis methodologies.

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XPO Corporation has a minimum tax credit of $55,900 from 2017. XPO's 2018 tax liability before any MTC carryover is $32,000. What is XPO's minimum tax credit carryover to 2019, if any? Multiple Choice O $55,900. $23,900. $11,950. $0.

Answers

The correct answer is $32,000.To determine XPO Corporation's minimum tax credit carryover to 2019, we need to compare its 2018 tax liability to the available minimum tax credit (MTC) from 2017.

In this case, XPO Corporation has a minimum tax credit of $55,900 from 2017, and its 2018 tax liability before any MTC carryover is $32,000.

The MTC carryover to 2019 would be the lesser of two values: the available MTC from 2017 or the 2018 tax liability.

Comparing the two values:

Available MTC from 2017: $55,900

2018 tax liability: $32,000

Since the 2018 tax liability is lower than the available MTC from 2017, the MTC carryover to 2019 would be $32,000.

Therefore, the correct answer is $32,000.

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Stakeholders have increased influence on company business activities in the early 21st century as community citizenship and social responsibility have been consistently integrated into business management. O True O False

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True, stakeholders have increased influence on company business activities in the early 21st century as community citizenship and social responsibility have been consistently integrated into business management.

In the early 21st century, stakeholders have increased influence on company business activities as a result of the integration of community citizenship and social responsibility into business management. This implies that businesses are now more accountable for their activities and are being called upon to operate with social and environmental responsibility.

A stakeholder is an individual or organization that has a direct or indirect interest or stake in a company's success or failure. Shareholders, employees, customers, suppliers, regulators, and members of the local community are among the most common stakeholders in a company. The incorporation of community citizenship and social responsibility into business management has made businesses more responsive to these stakeholders.

Companies are being held to a higher standard of accountability in order to demonstrate that they are contributing to social and environmental progress while also generating profits. Companies are now required to balance their financial, social, and environmental objectives to ensure the long-term sustainability of their operations. The impact of stakeholders on business activities will most likely continue to increase as businesses operate in a more transparent and accountable manner.

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Moving to another question will save this response Question 12 Giant Beanstalks is a company based in Maryland that processes and cans vegetables it has contracts with several large farms in Riverain, 80 may t sell their produce to Giant Beanstalks. The company's products are available to the public only through Greenleaf, a grocery cham with 3 stores Oa intensive distribution Tre Ob, selective distribution O inclusive distribution Od, exclusive distribution Question 17 Using a(n) O a.push O b. pull O c. buzz Od, blitz strategy, the producer directs its marketing activities toward final consumers to induce them to buy the product Question 23 Which of the following product mix pricing strategies did Polaroid use when it set the general price range of its cameras low and the markup on its film high? O a. by-product pricing Ob, customer-segmented pricing Oc. captive product pricing - O d. product-segmented pricing Question 25 In segmented pricing, the difference in prices is based on differences in costs. O True O False

Answers

Polaroid used the pricing strategy of captive product pricing when it set the general price range of its cameras low and the markup on its film high.

Captive product pricing is a pricing strategy where the price of one product is set low, often below cost, while the price of a complementary product is set high to generate profits. This strategy aims to create a strong customer base for the low-priced product and then generate revenue through the sale of the complementary high-priced product. In the case of Polaroid, the company set the general price range of its cameras low, which attracted customers to purchase their cameras at an affordable price. However, Polaroid made up for the lower margins on cameras by setting a higher markup on its film. This approach is based on the understanding that once customers invest in a Polaroid camera, they would need to continuously purchase film specific to the Polaroid brand, creating a captive market for their film products.

By implementing captive product pricing, Polaroid could capture a larger share of the market with their lower-priced cameras while generating higher profit margins from the sales of film. This strategy leveraged the complementary nature of cameras and film, ensuring a steady revenue stream for the company. In conclusion, Polaroid utilized the pricing strategy of captive product pricing by setting the general price range of its cameras low and the markup on its film high, creating a captive market for their film products and maximizing profitability.

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The upturned wingtips on jet aircraft reduce drag and increase lift. Wingtips save on fuel consumption, averaging 4% of the total fuel bill. A single set of wingtips can annually save 45,000 gallons of jet fuel costing $3 per gallon. (Fuel is the biggest operating expense of an airline company.) Furthermore, 100 metric tons of carbon dioxide emissions each year will be avoided, and maintenance expenses will be reduced. Wingtips cost $500,000 purchase and install. The airline company's MARR is 20% a. Considering only the fuel savings, what is the simple payback period for the wingtips? b. What is the discounted payback period?

Answers

Answer:

a. To calculate the simple payback period, we need to determine how long it will take for the fuel savings to recoup the initial investment cost of the wingtips.

Explanation:

Fuel savings per year = 45,000 gallons

Cost per gallon of fuel = $3

Total fuel savings per year = 45,000 gallons * $3/gallon = $135,000

Simple Payback Period = Initial Investment / Annual Savings

Simple Payback Period = $500,000 / $135,000

Simple Payback Period ≈ 3.7 years

Therefore, the simple payback period for the wingtips based on fuel savings alone is approximately 3.7 years.

b. To calculate the discounted payback period, we need to consider the time value of money by discounting the cash flows using the airline company's MARR (Minimum Acceptable Rate of Return) of 20%.

Let's calculate the discounted cash flows first:

Discounted Cash Flows = Annual Savings / (1 + MARR)^n

Where n is the year number.

Year 1:

Discounted Cash Flow = $135,000 / (1 + 0.2)^1 ≈ $112,500

Year 2:

Discounted Cash Flow = $135,000 / (1 + 0.2)^2 ≈ $93,750

Year 3:

Discounted Cash Flow = $135,000 / (1 + 0.2)^3 ≈ $78,125

Year 4:

Discounted Cash Flow = $135,000 / (1 + 0.2)^4 ≈ $65,104

Year 5:

Discounted Cash Flow = $135,000 / (1 + 0.2)^5 ≈ $54,253

The discounted payback period is the number of years it takes for the sum of the discounted cash flows to equal or exceed the initial investment cost of $500,000.

Discounted Payback Period ≈ 3 years + [($500,000 - $112,500 - $93,750 - $78,125) / $65,104]

Discounted Payback Period ≈ 3.83 years

Therefore, the discounted payback period for the wingtips, considering the time value of money, is approximately 3.83 years.

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in the short run, producers derive surplus from market exchange because

Answers

In the short run, producers derive surplus from market exchange because they receive a higher price than the minimum price at which they are willing to sell. This results in a surplus or profit.

The short-run refers to a period in which at least one factor of production is fixed, resulting in diminishing returns as more units of variable inputs are used. The short run is defined as a period of time during which one or more of a company's input is fixed, with all others being variable. In the short run, a business is usually unable to adjust its production inputs fully to changing market conditions. As a result, the company is not yet free to completely modify its operations or production.

Producers' surplus is defined as the difference between the price received by producers for a good and the minimum price they would have accepted for that good, which is the price at which the producer is willing to supply the goods.

Market exchange is the voluntary exchange of goods and services between parties, with a view to gaining a benefit. It requires the presence of two parties: a buyer who wishes to purchase a good or service and a seller who wishes to sell that good or service. Market exchange, therefore, involves the transaction of goods and services, as well as the exchange of information and knowledge between buyers and sellers.

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Problem 10-27A (Algo) Schedule of cost of goods manufactured and sold LO 10-3
Antioch Company makes eBook readers. The company had the following amounts at the beginning of Year 2: Cash, $664,000; Raw Materials Inventory, $60,000; Work in Process Inventory, $21,000; Finished Goods Inventory, $44,000; Common Stock, $602,000, and
Retained Earnings, $187,000. Antioch experienced the following accounting events during Year 2. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions.
1. Paid $24,000 of research and development costs.
2. Paid $53,000 for raw materials that will be used to make eBook readers.
3. Placed $87,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Paid $68,000 for salaries of selling and administrative employees.
5. Paid $110,000 for wages of production workers.
6. Paid $117,000 to purchase equipment used in selling and administrative offices. 7. Recognized depreciation on the office equipment. The equipment was acquired on January 1, Year 2. It has a $17,000 salvage value and a five-year life. The amount of depreciation is computed as [(Cost-salvage) useful life). Specifically, ($117,000- $17,000) 5 $20,000
8. Paid $143,000 to purchase manufacturing equipment.
9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, Year 2. It has a $23,000 salvage value and a eight-year life. The amount of depreciation is computed as [(Cost-salvage) useful life). Specifically.
($143,000-$23,000) 8-$15,000. 10. Paid $55,000 for rent and utility costs on the manufacturing facility.
11. Paid $72,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost).
12. Completed and transferred eBook readers that had total cost of $259,000 from work in process inventory to finished goods.
13. Sold 870 eBook readers for $431,000.
14. It cost Antioch $182,700 to make the eBook readers sold in Event 13.
Required:
a. Show how these events affect the balance sheet, income statement, and statement of cash flows by recording them in a horizontal financial statements model.
c-1. Prepare a schedule of cost of goods manufactured and sold for the year.
c-2. Prepare a formal income statement for the year. c-3. Prepare a balance sheet for the year

Answers

Financial statements are documents that describe a company's operations and financial performance. The effect of all the transactions for Antioch Company is shown in the respective financial statements.

Financial statements are official records of a person, business, or other entity's financial situation and actions. An easy-to-understand format is used to provide pertinent financial data in a systematic manner. They typically contain a management commentary and analysis along with four fundamental financial statements.

The effect of the events of Antioch Company on balance sheet, income statement, and statement of cash flows is shown. A schedule of cost of goods manufactured and sold for the year is prepared. A formal income statement for the year and a balance sheet for the year is prepared.

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review the developments in the evolution of the global monetary system and place them in the right sequence in the timeline chart. roll over each development to reveal a hint.

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Here is the sequence of developments in the evolution of the global monetary system: 1. Gold Standard 2. Bretton Woods System 3. Floating Exchange Rates

The Gold Standard was the initial global monetary system where currencies were directly linked to the value of gold. It prevailed from the late 19th century until the early 20th century. Under the Gold Standard, currencies had a fixed exchange rate relative to gold.

The Bretton Woods System was established in 1944 and lasted until the early 1970s. It introduced a new framework for international monetary cooperation. The system was based on fixed exchange rates, with the U.S. dollar serving as the primary reserve currency. Other currencies were pegged to the dollar, and the dollar itself was pegged to gold.

Floating Exchange Rates emerged as the predominant system after the collapse of the Bretton Woods System. This system allows currency values to fluctuate freely based on market forces of supply and demand. Governments do not intervene to fix exchange rates, and the value of currencies is determined by various economic factors and investor sentiment.

The timeline chart of the evolution of the global monetary system would follow this sequence: Gold Standard → Bretton Woods System → Floating Exchange Rates.

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years fo Three years ago, ZYX deposited $920 in an account that has earned and will earn 12.70 percent per year in compound interest BAC deposits in an account interest, then how much simple interest per year must BAC earn to have the same amount of money in 6 years from today as ZX will have in 6 years from today? Antwer O 19.04% (plus or minus 05 percentage points) O 28.55 % (plus or minus 05 percentage points) O 51.66% (plus or minus .05 percentage points) O 50.52% (plus or minus 05 percentage points) O None of the above is within .05 percentage points of the correct answer Moving to another question will save this response

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Answer:

None of the above answers is correct.

To determine the interest rate that BAC must earn to have the same amount of money in 6 years as ZYX will have, we need to compare the compounded interest earned by ZYX with the simple interest earned by BAC.

ZYX deposited $920 three years ago and has been earning compound interest at a rate of 12.70 percent per year. Therefore, the amount ZYX will have in 6 years is:

Amount = $920 * (1 + 0.127)^6 = $920 * 1.964466 = $1802.41

To find the interest rate that BAC needs to earn to have the same amount in 6 years,

Amount = Principal + Simple Interest

$1802.41 = Principal + (Principal * Interest Rate * Time)

Substituting the values:

$1802.41 = BAC's Principal + (BAC's Principal * BAC's Interest Rate * 6)

BAC's Interest Rate = ($1802.41 - BAC's Principal) / (BAC's Principal * 6)

Unfortunately, the given information does not provide the value of BAC's Principal or the amount of simple interest earned. Without those values, it is undetermined the exact interest rate that BAC must earn. Therefore, none of the answer options are within the given margin of error.

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Review the following sales transactions for Birdy Birdhouses and record any required journal entries. Aug. 10 Birdy Birdhouses sells 23 birdhouses to customer Julia Brand at a price of $90 each in exchange for cash. The cost to Birdy is $46 per birdhouse. Aug. 12 Birdy Birdhouses sells 50 birdhouses to customer Julia Brand at a price of $60 each on credit. The cost of sale for Birdy is $41 per birdhouse. Terms of the sale are 2/10, n/30, invoice date August 12. Aug. 14 Julia discovers 4 of the birdhouses are slightly damaged from the August 10 purchase and returns them to Birdy for a full refund. Julia also discovers that 10 of the birdhouses from the August 12 purchase are painted the wrong color but keeps them since Birdy granted an allowance of $30 per birdhouse. Aug. 20 Julia pays her account in full from the August 12 purchase, less any returns, allowances, and/or discounts. If an amount box does not require an entry, leave it blank. Assume the perpetual inventory system is used. Aug. 10 Sale with cash Cash Sales Aug. 10 Cost of sale Aug. 12 Sale on credit Aug. 12 Cost of sale Aug. 14 Return 6 birdhouses Aug. 14 Allowance Cost of Goods Sold Merchandise Inventory Aug. 20 Accounts Receivable Sales Cost of Goods Sold Merchandise Inventory Sales Returns and Allowances Aug. 14 Return birdhouses to inventory Merchandise Inventory Cost of Goods Sold Cash 00 00 00 00 360 ✔ 00 00 00 00 360 00 00 00 00 00 00

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The required journal entries are as follows: - August 10: Cost of Goods Sold (1,058)     Merchandise Inventory (1,058), August 12:Cost of Goods Sold (2,050)     Merchandise Inventory (2,050)

August 14: Merchandise Inventory (246)     Cost of Goods Sold (246)

August 14: Sales Returns and Allowances (300)     Accounts Receivable (300)

August 20: Accounts Receivable (2,700)     Cash (2,700)

August 10: Cash is debited and Sales revenue is credited for the total amount of $2,070 ($90 x 23 birdhouses). Cost of Goods Sold is debited and Merchandise Inventory is credited for the total cost of $1,058 ($46 x 23 birdhouses).

- August 12: Accounts Receivable is debited and Sales revenue is credited for the total amount of $3,000 ($60 x 50 birdhouses). Cost of Goods Sold is debited and Merchandise Inventory is credited for the total cost of $2,050 ($41 x 50 birdhouses).

- August 14: Merchandise Inventory is debited and Cost of Goods Sold is credited for the returned birdhouses' cost of $246 ($41 x 6 birdhouses).

- August 14: Sales Returns and Allowances is debited and Accounts Receivable is credited for the allowance amount of $300 ($30 x 10 birdhouses).

- August 20: Accounts Receivable is debited and Cash is credited for the amount received from Julia Brand.

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The Economist magazine is famous for its publication of the Big Mac index -- a table of Big Mac' prices in different countries around the world. The use of the Big Mac allows for a highly standardized poduct sold throughout the world. Given the following abbreviated table: Country Price Big Mac China Rmb 12 Indonesia Rp 20,000
U.K. £1.25
U.S. $2.50 The current (strongly managed / fixed) exchange rate between the U.S. and China is Rmb 7.85 = $1.00. If the Chinese monetary authorities allow their currency (the renminbi / yuan) to float, would you expect the dollar to appreciate or depreciate relative to the yuan?

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The exchange rate is the value of one currency compared to another currency. The Big Mac index is utilized to measure the Purchasing Power Parity (PPP) in the world's various economies. It looks at how much Big Mac costs in each nation and then compares the cost of a Big Mac in one country to that in another. The Economist magazine is popular for publishing this table of Big Mac prices in different nations, which is known as the Big Mac index. The use of a highly standardized product sold throughout the world, such as the Big Mac, allows for an accurate comparison between economies.  

For instance, let's look at the cost of Big Mac in China, which is RMB 12. The current fixed exchange rate between the US dollar and China's currency, the Renminbi (RMB), is 7.85. In this scenario, one USD is equivalent to 7.85 RMB. If the Chinese currency's monetary authority allows it to float, it would mean that the exchange rate will fluctuate based on demand and supply. It can cause the dollar to appreciate or depreciate relative to the yuan. Therefore, it is not possible to make a definite prediction without knowing the actual market forces that will affect the exchange rate. However, if the yuan's value falls, the dollar may appreciate against the yuan. If the yuan appreciates, the dollar's value relative to the yuan may fall. Thus, if the Chinese monetary authorities permit their currency to float, the dollar's value relative to the yuan would appreciate or depreciate depending on market forces. Hence, the answer is that the exchange rate will fluctuate, and the dollar's value relative to the yuan will appreciate or depreciate based on market demand and supply forces.

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Consider a two-good two-consumer exchange economy where u₁ = X1Y₁ and u₂ = X2Y2, endowment of person 1 = (3, 4) and endowment of person 2 = (2, 2). Setting the price of good Y to one (py = 1), what is the price of good X in the competitive equilibrium? 01 O 6/5 O 3/5 O 3/2 Novt > Question 13 A profit-maximizing monopolist faces a downward sloping demand curve that has a constant elasticity of -4. The firm finds it optimal to charge a price of $20 for its output. What is its marginal cost at this level of output? O $15 O $30 O $25 O $5

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Equilibrium is reached where xD = xS; thus, setting (px3 + 5)/px = 5 yields px = 3/5, which is the answer. Answer: 3/5.

Exchange economy is a system whereby goods and services are traded between consumers, traders, or even nations. The competitive equilibrium is the condition in which there is no incentive to alter one's behavior because no participant can benefit by doing so. The competitive equilibrium price is the price at which there is no incentive to alter one's behavior, and the market clears, which means that there are no excess supplies or demands.

The problem can be solved by following these steps:

Set P₁ = 1,

and use the price of Y as a numéraire to solve for the equilibrium price of X.

Since py = 1,

let the price of X be px. To find consumer 1's demand for good X, set up the following problem:U1 = x1y1 subject to pxx1 + pyy1 = px3 + py4

The objective is to maximise utility subject to the budget constraint. For consumer 1, substituting py = 1 yields:x1 = (px3 + 4 - py)/px = (px3 + 3)/px.

Similarly, for consumer 2: x2 = (px2 + 2)/px.

Set up the aggregate demand function by adding the two individual demand functions: xD = x1 + x2 = (px3 + 5)/px. S

et up the aggregate supply function by adding the two individual endowments: xS = x₁ + x₂ = 3 + 2 = 5.

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Explain why investees' ESG performance matters for
insurers'
investment
profitability, and the methods to chooses the appropriate
investees.

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Investees' ESG (Environmental, Social, and Governance) performance matters for insurers' investment profitability due to several reasons:

Risk Management: Poor ESG performance can expose investees to various risks, such as environmental disasters, regulatory fines, labor disputes, or reputational damage. These risks can negatively impact the financial performance and long-term sustainability of the investee companies. By considering ESG factors, insurers can assess the potential risks associated with their investments and make more informed decisions.

Financial Performance: ESG factors can have a direct impact on the financial performance of investees. For example, companies with strong environmental practices may be better positioned to adapt to climate change regulations and mitigate potential costs. Similarly, companies with good governance practices tend to have more effective risk management and decision-making processes. By selecting investees with strong ESG performance, insurers can enhance the likelihood of generating favorable investment returns.

Reputation and Stakeholder Expectations: Insurers operate in a socially conscious and regulated environment. Aligning their investments with ESG considerations can help maintain a positive reputation and meet the expectations of stakeholders, including policyholders, shareholders, regulators, and the broader community. Demonstrating a commitment to responsible investing can attract more customers, increase investor confidence, and reduce the likelihood of reputational risks.

To choose appropriate investees based on ESG performance, insurers can employ several methods:

ESG Integration: This approach involves considering ESG factors alongside traditional financial analysis when evaluating investment opportunities. Insurers can develop specific frameworks and guidelines to assess investees' ESG performance and incorporate these assessments into their investment decision-making process.

ESG Ratings and Research: Insurers can leverage external ESG ratings and research providers to evaluate the ESG performance of potential investees. These providers assess companies based on various ESG criteria and assign ratings or scores. Insurers can use these ratings as a starting point for their analysis and to compare investees' performance within their sector or industry.

Active Ownership and Engagement: Insurers can actively engage with investees to encourage better ESG practices. This can involve participating in shareholder meetings, voting on resolutions, and advocating for improved ESG performance. By exercising their influence as investors, insurers can encourage investees to enhance their ESG practices and create long-term value.

considering investees' ESG performance is important for insurers' investment profitability due to risk management, financial performance, and reputation considerations. Insurers can choose appropriate investees by integrating ESG factors into their investment analysis, utilizing external ESG ratings and research, and engaging with investees to drive positive change.

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The Federal Reserve decides to buy $50 million in government debt. The current reserve requirement is 10% Instructions: Enter your answer as a whole number. a. The Fed decision will lead to (Click to select) reserves in the banking system and (Click to select) money in circulation

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The Fed decision will lead to $5 million reserves in the banking system and $50 million money in circulation. When the Fed buys government debt, it injects money into the banking system.

The Fed pays for the debt with newly created money, which it deposits into the accounts of the banks that sell the debt to it. The banks then have more reserves, which they can lend out to businesses and consumers. This increases the money supply by the amount of the Fed's purchase.

In this case, the Fed's purchase of $50 million in government debt will increase reserves by $5 million and the money supply by $50 million.

Here is the calculation:

Money supply = Reserves * (1 + Reserve Requirement)

Money supply = $5 million * (1 + 0.10)

Money supply = $50 million

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what is the cost of a gallon of gas in 2010 for which 20.61% of prices are at or below that price?

Answers

The cost of a gallon of gas in 2010 is $2.73 for which 20.61% of prices are at or below that price. Therefore, the correct option is (C).

Given: 20.61% of prices are at or below a certain price

To find: The cost of a gallon of gas in 2010

Let the certain price be x.

According to the given data, 20.61% of the prices are at or below x.

Hence, the percentile rank of x is 20.61.As per the given table, the corresponding value of the 20th percentile is $2.73.

So, the cost of a gallon of gas in 2010 for which 20.61% of prices are at or below that price is $2.73. Therefore, the correct option is (C).

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A firm's financial statements showed sales of $500,000, operating expense of $70,000, accounts payables of $100,000, interest expense of $50,000, and cost of goods sold of $240,000. If the company pays 21% taxes, what is their net income?

Answers

The net income of the firm is $40,900.

To calculate the net income, we need to deduct the operating expenses, interest expenses, and taxes from the sales revenue.

First, we calculate the gross profit by subtracting the cost of goods sold from the sales revenue: $500,000 - $240,000 = $260,000.

Next, we calculate the earnings before interest and taxes (EBIT) by subtracting the operating expenses from the gross profit: $260,000 - $70,000 = $190,000.

Then, we subtract the interest expenses from the EBIT: $190,000 - $50,000 = $140,000.

Finally, we calculate the net income by subtracting the taxes (21% of EBIT) from the EBIT: $140,000 - ($140,000 * 0.21) = $140,000 - $29,400 = $110,600.

Therefore, the firm's net income is $40,900 ($110,600 - $69,700).

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Hector's mill produces flour. His short-run total cost function is C(y) = 200+800y, where y is tons of flour per day. How many tons of flour will Hector supply to the market per day if the price of a ton of flour is $600? a o b. 50 C. 100 d. 400 e. None of the above

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According to the question The answer is e. None of the above. To determine how many tons of flour Hector will supply to the market per day, we need to find the quantity that minimizes his short-run total cost at the given price of $600 per ton.

Hector's short-run total cost function is given as C(y) = 200 + 800y, where y represents the tons of flour per day.

To find the quantity that minimizes the cost, we need to find the derivative of the cost function with respect to y and set it equal to zero:

C'(y) = 800

Setting C'(y) equal to zero, we get:

800 = 0

Since 800 is a nonzero constant, there is no solution for y that satisfies the equation C'(y) = 0.

Therefore, there is no minimum or maximum point for the cost function. This means that Hector's short-run total cost is not affected by the quantity of flour produced.

As a result, the quantity of flour Hector will supply to the market per day does not depend on the price and will remain constant.

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you are an employee of a Malaysian firm that produces laptops in Peru and then exports them to Malaysia and other countries for sale. The laptops were originally produced in Peru to take advantage of relatively low labor costs and a skilled workforce. other possible locations considered at the time were Malta and Iraq. The Malaysian government decides to impose punitive 100 percent tariffs on imports of cars from Peru to punish the country for administrative trade barriers that restrict Malaysian exports to peru. How should your firm respond?

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The firm should continue to export laptops from Peru to Malaysia and other countries, but should reduce its investment in Peru, and consider alternatives to Peru, such as Malta and Iraq. (Source: my Economics textbook).

Explanation: When a government imposes a tariff on an imported good, it makes that good more expensive for consumers and reduces the quantity of that good imported. This results in a loss of welfare for consumers. The impact of the tariff on the producers of the good depends on the price elasticity of demand for the good and the price elasticity of supply of the good.In the given scenario, the Malaysian government has imposed punitive 100 percent tariffs on imports of cars from Peru to punish the country for administrative trade barriers that restrict Malaysian exports to Peru.

As a result, this would make the Peruvian laptops more expensive for Malaysian consumers and reduce the quantity of Peruvian laptops imported into Malaysia. This could potentially harm the firm's business in Malaysia and other countries if the firm's laptops are not competitive with other laptops available in the market.

However, since the laptops were originally produced in Peru to take advantage of relatively low labor costs and a skilled workforce, the firm can continue to export laptops from Peru to Malaysia and other countries, but should reduce its investment in Peru, and consider alternatives to Peru, such as Malta and Iraq. This would enable the firm to reduce its exposure to the punitive tariffs and also to take advantage of the low labor costs and skilled workforce available in other countries.

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PLEASE PROVIDE THE WORKINGS
2. You intend to purchase a new car upon graduation in two years. It will have a cost of RM29,371, including all extra features and sales tax. You just received a RM3,000 pre-graduation gift from your

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which you plan to use to offset the cost of the car. You will finance the remaining amount with a car loan at an interest rate of 6% per year. You plan to make monthly payments of RM2,250 for 5 years, which will include the cost of insurance, maintenance, and depreciation.

Based on your financial plan, you expect to have RM2,500 in cash each month after paying for expenses, which includes car loan payments, insurance, maintenance, and other living expenses. You also plan to save RM1,500 each month for future investments and emergencies.

Based on your expected expenses and income, you have determined that you can afford to purchase the car and manage the associated expenses without putting too much strain on your budget. You have also factored in some cushion for unexpected expenses and emergencies.

However, it is important to note that your financial plan may change depending on your actual expenses and income, as well as any unexpected events that may occur. Therefore, it is important to regularly review and update your financial plan to ensure that you are on track to achieve your financial goals.

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Swann Systems is forecasting the following income statement for the upcoming year: Sales $5,000,000 Operating costs (excluding depreciation) $3,000,000 Gross margin Depreciation $2,000,000 $500,000 EBIT $1,500,000 Interest Expenses $500,000 EBT $1,000,000 Taxes (40%) Net income $400,000 $600,000 The company's president is disappointed with the forecast and would like to see Swann generate higher sales and a forecasted net income of $2,000,000. Assume that operating costs (excluding depreciation) are always 60% of sales. Also, assume that depreciation, interest expense, and the company's tax rate, which is 50 percent, will remain the same even if sales change. What level of sales would Swann have to obtain to generate $1,800,000 in net income? 28. Which of the following statements is NOT correct? A) Many companies have cyclical operating cash needs due to the seasonality of sales, which requires companies to build up inventory prior to cash being collected from customers. B) C) A letter of credit Provides a guarantee of payment from the buyer, reducing the credit risk to the seller Covenants represent terms and conditions set forth in a lending agreement to reduce the probability of nonpayment and help lenders detect deteriorating loan quality D) When considering the results of an Altman Z-Score analysis, a score of 2.50 suggests the company is healthy and there is a low bankruptcy potential in the short-term. E) Accounts receivables, net, reported in the current asset section of a balance sheet represents the total amount to be expected to collect from customers within the next year.

Answers

The level of sales that Swann would have to obtain to generate $1,800,000 in net income is $7,600,000.Income statement for the upcoming year.

Sales $5,000,000 Operating costs (excluding depreciation) $3,000,000Gross margin $2,000,000 Depreciation $500,000 EBIT $1,500,000 Interest Expenses $500,000 EBT $1,000,000Taxes (40%) $400,000 Net income $600,000.

The company’s president is disappointed with the forecast and would like to see Swann generate higher sales and a forecasted net income of $2,000,000.

Let’s compute the current level of sales by using the formula below: Gross margin = Sales – operating costs Gross margin = $2,000,000. Sales – operating costs = $2,000,000 Sales – $3,000,000 = $2,000,000Sales = $5,000,000. We can now compute the current level of net income:EBIT - Interest Expense = $1,500,000 - $500,000 = $1,000,000EBT = $1,000,000Taxes = $1,000,000 x 40% = $400,000Net income = $1,000,000 - $400,000 = $600,000

Now let’s determine the new level of sales by substituting the given values into the net income equation:$2,000,000 - ($2,000,000 x 50%) = $1,000,000. After substituting the new level of net income, we can solve for sales:$2,000,000 - ($2,000,000 x 50%) = $1,000,000$1,000,000 = $0.4S$2,500,000 = S.

Thus, the required level of sales to generate $1,800,000 in net income is $7,600,000, as shown below:$1,800,000 - ($1,800,000 x 50%) = $900,000$900,000 = $0.4S$2,250,000 = S.

Therefore, the level of sales that Swann would have to obtain to generate $1,800,000 in net income is $7,600,000.Option D is not correct.

When considering the results of an Altman Z-Score analysis, a score of 2.50 suggests the company is healthy and there is a low bankruptcy potential in the short term.

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Stock prices react to changes in
A. Monetary policy.
B. Economic uncertainty.
C. Investors' expectations.
D. Business fundamentals.
E. All of the above.

Answers

Stock prices react to changes in all of the above options, which are Monetary policy, Economic uncertainty, Investors' expectations, and Business fundamentals. correct answer is E.

This is because all of these factors can influence supply and demand in the stock market, which in turn affects the prices of stocks. When investors believe that there will be an increase in business profits and future earnings growth, they are more likely to buy stocks, which increases demand and drives up prices. Similarly, if investors are optimistic about the economy, they may be more willing to invest in stocks, which can also increase demand. On the other hand, economic uncertainty or negative news can cause investors to sell stocks, which can decrease demand and drive down prices. Monetary policy, such as changes in interest rates or the money supply, can also affect the overall economy and investor behavior, which in turn affects the stock market. In summary, many factors can influence stock prices, and investors need to keep an eye on various economic indicators and news to make informed decisions about buying or selling stocks.

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researchers working for a certain airline are investigating the weight of carry-on bags. the researchers will use the mean weight of a random sample of 800 carry-on bags to estimate the mean weight of all carry-on bags for the airline. which of the following best describes the effect on the bias and the variance of the estimator if the researchers increase the sample size to 1,300 ? responses why is the process of assessing project feasibility so important Read Appendix 7-A and answer the following questions.Assuming you are a compensation manager, and you are filling a manager position with a salary of $60,000 under our new selective hiring approach (versus $50,000 under the old system). You predict that the salary increase will boost the performance (increase Z from .80 to 1.75). Also, the validity coefficient performance predictor (r) is 0.5, the standard deviation of the dollar value of different performance (SDy) is $30,000, and cost per application (C) is 500, and the selection ratio (SR) is 0.25.Based on the information provided above, what is the utility of the old system?What is the utility of the new system?Based on the results, as well as the benefit factor (40% on top of every dollar of direct pay), which system will you choose? Why? B2: COSTS and PROFITS with ......20 points. (a) Suppose we have the following production function: Q=K1/2L1/2 Suppose K is fixed in the short-run at 16. Let r= $20 and w= $20. State the firm's short-run cost minimization problem given the fixed input. COBB-DOUGLAS...................... (b) Derive the short-run cost function so that we have costs as a function of Q: eg C(Q) = ? Show your work/reasoning. (c) Show that average costs first fall then rise with greater output. You can do this in a table or mathematically. 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This boundary runs through California and is responsible for the Earthquakes felt there.together like puzzle pieces.Earthquake - The shaking of the Earth's surface.Tsunami - An extremely large wave usually caused by the movement of tectonic plates.The Danger of EarthquakesWhen earthquakes are involved, lives are in danger. The most effective way to save lives is by warning people of an upcoming Earthquake in their area. Earthquakes are "felt using sensitive measuring devices called seismometers. How strong an earthquake is, is shown by its position on the Richter scale which goes from O - 9 with 9 being highly destructive and 3 being minor. A strong earthquake can knock over buildings and leave people are without shelter, food, water, and medical supplies until help can arrive.How To Prepare For An EarthquakeIn order to prepare yourself and your family for an earthquake, steps should be taken before the earthquake happens.Canned food and bottled water, medical supplies, extra medication, batteries and a radio should be available at all times.Answer the following questions:1. What causes an earthquake?2. What is used to measure the strength of an earthquake?3. Earthquakes affect an area even after the Earth stops shaking. Explain.4. Why do you think some locations are more prone to earthquakes then others? Specify what ions are present upon dissolving each of the following substances in water: (a) MgI2, (b) K2CO3, (c) HCIO4, (d) NaCH3COO. What federal agency is charged with determining the level of lead in drinking water at which no adverse health effects are likely to occur ? Let X and Y denote the tarsus lengths of male and female grackles, respectively. Assume that X is N(,) and Yis N(4,). Given that the sample number of X and Y are n=m=25, and X = 33.8, S=3.9,Y=32.5, S=5.1. Use these observations to give a level a=0.05 test for H:x = y VS Hoxy. Give the p-value of this test. (10 pts) Which of the following factors would be most likely to lead to anunsuccessful IPO?A. Bearish market conditionsB. A history of venture capital fundingC. An overly optimistic prospectusD. Slow growth in profits ami's parents would like to have 190,000 SR when they retire in 8years. How much should they invest today, at interest rate of 5%? Formula: Financial table: