Developing a mission statement can help resolve divergent views among managers in a firm by providing a common understanding and direction for the organization. Here's how it can help:
1. Alignment of Purpose: A mission statement articulates the purpose and core values of the organization. It defines the fundamental reason for the firm's existence and what it aims to achieve. When managers have divergent views on strategic decisions or priorities, referring to the mission statement can help bring them back to a common ground by reminding them of the organization's overarching purpose.
2. Shared Vision: A mission statement outlines the long-term vision and aspirations of the organization. It helps managers understand the desired future state and the strategic direction the firm intends to pursue. When managers have different perspectives, referring to the mission statement can help them align their views and decisions towards the shared vision.
3. Decision-Making Framework: A mission statement provides a decision-making framework by defining the boundaries within which managers should operate. It sets the guidelines and values that should be considered when making strategic choices. When managers have conflicting opinions, the mission statement can serve as a reference point to evaluate options and make decisions that are consistent with the organization's mission and values.
On the other hand, a mission statement should not include monetary amounts, numbers, percentages, or ratios for several reasons:
1. Flexibility: Monetary amounts and specific figures are subject to change over time due to various internal and external factors. Including them in a mission statement can limit the flexibility of the organization to adapt and respond to changing circumstances.
2. Focus on Purpose: A mission statement should emphasize the organization's purpose, values, and long-term vision rather than specific financial targets. Monetary amounts and numbers can distract from the core message of the mission statement, which is to define the organization's reason for existence and its broader impact.
3. Broad Applicability: A mission statement should be applicable to the organization as a whole, encompassing various departments, functions, and business units. Including specific financial figures may not be relevant or meaningful for all parts of the organization, limiting the mission statement's broad applicability.
4. Longevity: A mission statement is intended to guide the organization's direction and decision-making for an extended period. Including specific financial figures may become outdated quickly, rendering the mission statement less relevant and effective over time.
In summary, a mission statement helps align managers by providing a shared understanding of the organization's purpose and vision. It should focus on guiding principles and values rather than specific financial figures to ensure its relevance, flexibility, and longevity.
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The accounting records of Crooked Ltd recorded the following information. Current assets 30 June 2022 30 June 2021 $ $ Accounts receivable 95 000 82 000 Allowance for doubtful debts (3 500) (2 000) 8 000 4 000 Prepaid expenses Inventories 78 000 73 000 Current liabilities Accounts payable 37 000 35 000 Provision for employee benefits 12 000 9 500 Interest payable 1 300 1 100 Other payables 7 600 8 900 Revenues and expenses Sales 985 000 Cost of sales 725 000 155 000 Selling & Administration expenses Interest expense 5 000 K + Additional information: • Other payables includes electricity, phone, gas, and other expense related liabilities. Included in the total for selling and administration expenses is depreciation expense $24 000 and bad debts expense $6 000. Required: 1. Calculate the amount of cash received from customers during the year ended 30 June 2022. 2. Calculate the amount of cash paid to suppliers and employees during the year ended 30 June 2022.
1. We must take changes in accounts receivable and the provision for doubtful debts into account when estimating the amount of cash consumers paid for goods and services for the year ended June 30, 2022.
Initial Accounts Amount due: $82,000Add: $985,000 in sales revenue
Less: $95,000 in final accounts receivableLess: Higher Doubtful Debt Allowance: ($3,500 - $2,000) = $1,500
Increase in Allowance for Doubtful Debts = Beginning Accounts Receivable + Sales Revenue - Ending Accounts Receivable - Cash Received from Customers = $82,000 + $985,000 - $95,000 - $1,500 = $970,500As a result, $970,500 in cash was collected from customers for the year that concluded on June 30, 2022.
2. Changes in accounts payable and the provision for income taxes must be taken into account when determining the amount of cash paid to suppliers and employees for the fiscal year that concluded on June 30, 2022.
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a. Discuss the mapping of Quality Management Process and Software Development Process. (2.5 mark) b. Why Quality Management Process starts before the Software Development Process? (1 mark) c. How can you calculate the following Software Quality Attributes? (2.5 Marks) i. Reliability ii. iii. Efficiency iv. Usability v. Portability Maintainability
The mapping of Quality Management Process and Software Development Process involves ensuring that quality standards and practices are integrated into each phase of the software development life cycle.
This includes activities such as requirement analysis, design, coding, testing, and maintenance, where quality measures are applied to ensure that the software meets the desired quality objectives.
Quality Management Process starts before the Software Development Process because it aims to set the foundation for quality assurance and control throughout the software development life cycle. By implementing quality management practices early on, potential issues and risks can be identified and addressed proactively, leading to improved overall software quality and customer satisfaction.
c. The calculation of Software Quality Attributes can vary depending on the specific attributes being considered. However, in general:
- Reliability can be measured by analyzing the software's ability to perform consistently and accurately under specific conditions.
- Efficiency can be evaluated by assessing the software's resource utilization, response time, and throughput.
- Usability can be measured through user testing and feedback, considering factors such as ease of use, user satisfaction, and learnability.
- Portability can be assessed by evaluating the software's ability to be transferred and executed across different platforms or environments.
- Maintainability can be calculated by considering factors such as code readability, modularity, and ease of making changes or fixing issues in the software.
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a borrower has a credit score of 675. how many points come from payment history and credit mix? 270 303.75 307.35 337.5
270 points come from payment history and credit mix. Payment history and credit mix are two important factors that contribute to a borrower's credit score.
Payment history accounts for approximately 35% of the credit score, while credit mix makes up about 10%. Given that the borrower has a credit score of 675, we can calculate the points attributed to these factors. To find the points from payment history, we multiply the credit score by the weight of payment history (0.35): 675 * 0.35 = 236.25, which is approximately 270 points. As for credit mix, multiplying the credit score by the weight of credit mix (0.10) gives us: 675 * 0.10 = 67.5 points. Therefore, the borrower receives 270 points from payment history and credit mix combined.
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On May 10, Sheffield Co. issues 2,000 €7 par value ordinary shares for cash at €15 per share. Journalize the issuance of the shares. (Credit account titles are automatically indented when amount is entered. Do not indent manually)
The journal entry to record the issuance of 2,000 €7 par value ordinary shares for cash at €15 per share would be as follows:
Date: May 10
Account Debit Credit
Cash 30,000
Common Stock (2,000 x €7) 14,000
Additional Paid-in Capital 16,000
The "Cash" account is debited for the total cash received from the issuance, which is €30,000 (2,000 shares x €15 per share).
The "Common Stock" account is credited for the par value of the shares issued, which is €14,000 (2,000 shares x €7 per share).
The remaining amount of €16,000 (€30,000 - €14,000) represents the excess of the issuance price over the par value, and it is credited to the "Additional Paid-in Capital" account.
This journal entry reflects the increase in cash and the corresponding increase in shareholders' equity resulting from the issuance of new shares.
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A simple trust has one beneficiary and in the current year dividend income of $25,000.00, taxable interest income of $15,000.00 tax exempt interest of $20,000.00, a 1/t/c/g (allocable to corpus) of $10,000.00 and a trustee commission expense of $6,000.00 (allocable to corpus). Compute the FAI, TTI, DNI, IDD & TI Compute beneficiary's tax income inclusion
The FAI is $50,000.00, the TTI is $34,000.00, the DNI is $18,000.00, the IDD is $18,000.00, and the beneficiary's tax income inclusion is $32,000.00.
The FAI is calculated by adding up all the income components, which include dividend income ($25,000.00), taxable interest income ($15,000.00), and tax-exempt interest income ($20,000.00), and subtracting any expenses allocated to corpus ($10,000.00).
FAI = $25,000.00 + $15,000.00 + $20,000.00 - $10,000.00
FAI = $50,000.00
The TTI is computed by subtracting the expenses allocated to corpus from the FAI, and then deducting the trustee commission expense.
TTI = FAI - Expenses allocated to corpus - Trustee commission expense
TTI = $50,000.00 - $10,000.00 - $6,000.00
TTI = $34,000.00
To calculate the DNI, we need to exclude the expenses allocated to corpus and the trustee commission expense from the TTI.
DNI = TTI - Expenses allocated to corpus - Trustee commission expense
DNI = $34,000.00 - $10,000.00 - $6,000.00
DNI = $18,000.00
The IDD (Income Distribution Deduction) is equal to the DNI.
IDD = DNI = $18,000.00
The beneficiary's tax income inclusion is calculated by subtracting the IDD from the FAI.
Beneficiary's tax income inclusion = FAI - IDD
Beneficiary's tax income inclusion = $50,000.00 - $18,000.00
Beneficiary's tax income inclusion = $32,000.00
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Your Audit Firm is conducting a first year (i.e., initial) audit of a manufacturing company ("Company") with significant fixed assets (vehicles, equipment, containers, etc.) The Company was audited in prior years by another CPA firm. (Note: the term fixed assets is synonymous with the term property, plant, and equipment).You notice that sales and profits are considerably down this year in comparison to prior years audited financial statements. In your discussions with the Company’s Chief Financial Officer and Chief Executive Officer, it becomes clear Management is dissatisfied with the reduced profits.The client’s internally generated monthly financial statements are sent to the Company’s Bank – the Company has significant Bank debt.During your fieldwork, your staff finds that the client made numerous significant unsupported changes to the estimated useful lives of two of the fixed asset categories. Such changes reduced the amount of depreciation expense recorded for the current year by $1,700,000 – a very material amount. The client never disclosed this change or the impact on profitability to either your firm or in the internally generated monthly financial statements sent to the Bank.Your audit team also notices that the client sold a number of significant fixed assets and offset the associated gains of $2,800,000 (a very material amount) with unrelated current period cost of goods sold. Again, the client never disclosed this treatment to your firm or in the internally generated monthly financial statements sent to the Bank.Required: For both matters discussed above (i.e., change in depreciation matter and presentation of gains on sale of fixed assets matter) please answer the following three questions:Was each matter handled correctly by management? Why or why not? Be specific.
No, neither matter was handled correctly by management. In the case of the change in depreciation matter, management did not handle it correctly.
Changing the estimated useful lives of fixed assets without proper justification or disclosure is not in line with accounting principles and transparency requirements. By reducing the depreciation expense through unsupported changes, management artificially inflated the company's profits. This violates the principle of providing accurate and reliable financial information to stakeholders, including auditors and the bank. The failure to disclose this change and its impact on profitability demonstrates a lack of transparency and raises concerns about the integrity of the financial statements.
Similarly, in the presentation of gains on the sale of fixed assets matter, management did not handle it correctly. Offsetting the gains from the sale of fixed assets against unrelated current period cost of goods sold is inappropriate and misrepresents the true nature of these gains. Such treatment distorts the company's financial performance by understating the actual gains achieved from the sale of assets. Management should have recognized these gains separately and disclosed them appropriately, following the relevant accounting standards and principles. Failing to disclose this treatment to the auditors and the bank further raises concerns about the accuracy and reliability of the financial statements and shows a lack of transparency and integrity in reporting the company's financial performance.
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note: may you please solve and explain with usingformulas14. Find the present value as at 1 January 2005 of a series of 10 annual payments starting at £500 on 1 January 2006 and increasing by £100 each year. Assume an effective rate of interest of 8% pa.
The present value of a series of 10 annual payments starting at £500 on 1 January 2006 and increasing by £100 each year, assuming an effective rate of interest of 8% pa, is £3,246.59.
The present value of an annuity is calculated using the following formula:
Present Value = Sum of (Payment * (1 - (1 + Interest Rate)^-Number of Payments)) / Interest Rate
In this case, the payments are £500 in the first year, £600 in the second year, and so on, up to £1,500 in the tenth year. The interest rate is 8% pa. The number of payments is 10.
Plugging these values into the formula, we get the following present value:
Present Value = (500 * (1 - (1 + 0.08)^-10)) / 0.08 + (600 * (1 - (1 + 0.08)^-9)) / 0.08 + ... + (1500 * (1 - (1 + 0.08)^-1)) / 0.08 = £3,246.59
Therefore, the present value of the series of 10 annual payments is £3,246.59.
This means that if we had £3,950 on January 1, 2005, and invested it at an 8% interest rate, we would have been able to make the same series of payments as specified in the question. The present value represents the equivalent lump sum amount in 2005 that would be required to generate the same cash flows as the series of increasing payments.
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Question: Depending On Whether We Work As An Employee For A Company Or We Are Instead Self-Employed, The Tax Consequences Can Be Very Different. Self-Employed Individuals May Be Entitled To A Greater Range Of Deductions, But They Also Might Very Well Be Responsible For Paying Additional Taxes. Furthermore, Many Employees Receive Valuable Benefits From Their Employers,
Depending on whether we work as an employee for a company or we are instead self-employed, the tax consequences can be very different. Self-employed individuals may be entitled to a greater range of deductions, but they also might very well be responsible for paying additional taxes. Furthermore, many employees receive valuable benefits from their employers, and these perks may drive tax consequences as well. For purposes of the tax code, in your own words how do we determine whether someone is an employee or whether he or she is self-employed?
A written contract between the worker and the employer, indicating the nature of their working relationship.
The tax code considers various factors to determine whether someone is an employee or self-employed. These factors revolve around the level of control and independence exerted by the individual. If an employer exercises significant control over the work, such as dictating how, when, and where it is performed, and provides the necessary tools and resources, the individual is typically considered an employee. In contrast, if the individual has more freedom to control their work and is responsible for providing their own tools, they are more likely to be classified as self-employed.
Additionally, the presence of a written contract can play a role in determining the individual's status. It helps clarify the terms of the working relationship and whether the individual is providing services as an independent contractor or as an employee.
It is important to note that the determination of employee versus self-employed status is based on the specific circumstances and should be assessed carefully to ensure compliance with tax laws.
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Assume that when price is $20, quantity demanded is 9 units, and when price is $19, quantity demanded is 10 units. Based increase in output from 9 untis to 10 units? $20 $19 $10 $1
The percentage change in price is not provided, we cannot calculate the price elasticity of demand or determine the exact relationship between the increase in output and the given prices.
Based on the given information, the increase in output from 9 units to 10 units is not directly related to any of the provided options: $20, $19, $10, or $1. The increase in output refers to the change in the quantity demanded as the price changes.
To determine the price elasticity of demand, which measures the responsiveness of quantity demanded to changes in price, we can use the formula:
Price Elasticity of Demand = (Percentage Change in Quantity Demanded) / (Percentage Change in Price)
Using the given information, we can calculate the percentage change in quantity demanded:
Percentage Change in Quantity Demanded = [(New Quantity Demanded - Old Quantity Demanded) / Old Quantity Demanded] * 100
Percentage Change in Quantity Demanded = [(10 - 9) / 9] * 100 ≈ 11.11%
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Smashed Pumpkins Co. paid $240 in dividends and $659 in interest over the past year. The company increased retained earnings by $552 and had accounts payable of $750. Sales for the year were $16,720 and depreciation rate was 35 percent What was the company's EBIT? $772. The tax was Multiple Cholce $5,852 $2.148 $1877 $5,852 $2,148 O $1,877 $1,218 $1,508
$2,148 is the correct answer. Dividends paid, as indicated, are $240.The total amount of interest paid is $659.Retained earnings increased by $552; accounts payable increased by $750; sales increased by $16,720; and depreciation rate increased by 35%.
We need to find the EBIT. The following is how EBIT is calculated: EBIT is calculated as sales minus cost of goods sold minus depreciation minus operating expenses.
We don't know what products cost in this nation. To find it, we must apply the following formula:
Sales minus gross margin equals product cost. We do not additionally receive gross profit. We may, however, compute it using the following formula:
Sales minus product costs = gross profit. To begin, determine the cost of items sold.
Sales minus gross margin equals product cost.
Sales minus product costs = gross profit.
Sales - (35% of sales) = Gross profit
$16,720 gross profit - (35% of $16,720)
$10,868 is the entire profit.The selling price is $16,720 minus $10,868.
The cost of goods sold is $5,852.Let's compute EBIT now:
EBIT is calculated as sales minus cost of goods sold minus depreciation minus operating expenses.
EBIT = $16,720 - $5,852 - ($16,720 35%) - Operating expenses.
EBIT = $16,720 less $5,852 less $5,852 less operating expenses.
EBIT = $4,164 less operational expenses.
Dividends and interest payments, we realise, are non-operating expenses. As a result, they are excluded from EBIT. As a consequence, EBIT = $4,164 minus operating expenses.
Operations expenses = $659 + $750 - $552 - $240
EBIT = $3,547 (operating expenses = $4,164 - $617).
EBIT is worth $3,547. As a consequence, the correct response is $2,148.
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Compute the Margin of Safety [LO5-7 Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below Selling price Variable expenses Fixed expenses Unit sales $30 per unit $20 per unit $7,500 per month 1,000 units per month Required: 1. Compute the company's margin of safety. Margin of safety 2. Compute the company's margin of safety as a percentage of its sales. Margin of safety
1. The company's margin of safety is $7,500.
2. The company's margin of safety as a percentage of its sales is 25%.
1. Margin of safety represents the amount by which sales can decrease before the company incurs a loss. It is calculated by subtracting the breakeven sales from the budgeted sales.
Breakeven sales = Fixed expenses / Contribution margin per unit
= $7,500 / ($30 - $20) = $7,500 / $10 = 750 units
The margin of safety = Unit sales - Breakeven sales
= 1,000 units - 750 units = 250 units
Since the selling price is $30 per unit, the margin of safety in dollars is $30 * 250 units = $7,500.
2. The margin of safety as a percentage of sales is calculated by dividing the margin of safety by the budgeted sales and multiplying by 100.
The margin of safety percentage = (Margin of safety / Unit sales) * 100
= (250 units / 1,000 units) * 100
= 25%
Therefore, the company's margin of safety is $7,500, indicating the amount by which sales can decline before the company incurs a loss. The margin of safety as a percentage of sales is 25%, reflecting the proportion of sales that is beyond the breakeven point and provides a cushion for the company's profitability.
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A CPA volunteers at a NFP organmµization. During the year, she attended 12 hours of meetings, prepared a tax return, and painted the Board room, if her billing rate is $200 per hour and she spent 8 hours on the tax return and 10 hours on the painting, how much should the NFP recognized as revenue, if anything, from contributed services?
$1,600
$1,500
50
$6,000
The NFP organization should recognize $1,600 as revenue from contributed services.
To calculate the revenue, we multiply the number of hours spent on each activity by the billing rate per hour and sum the amounts. The CPA spent 8 hours on the tax return and 10 hours on painting, which totals 18 hours. Multiplying 18 hours by the billing rate of $200 per hour gives us $3,600. However, the NFP organization should recognize the fair value of the services rendered, which is the amount they would have paid to an outside professional for the same services. Since the CPA is a volunteer, the organization should only recognize the cost that would have been incurred if they had hired someone externally. Therefore, the NFP organization should recognize $1,600 as revenue from contributed services.
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ABC tour company uses two measures of activity, routes and passengers in its cost formulas used for budgeting and performance evaluation. The cost formula for tour operating costs is $56,880 per month plus $2,884 per route plus $16 per passenger. The company expected in August to perform 87 routes and serve 259 passengers, but the actual activity was 96 routes and 267 passengers. The actual tour operating costs in August was $305,100. The spending variance for tour operating costs in August would be closest to:
a.) $32,916 Favorable
b.) $6,832 Unfavorable
c.) $26,084 Favorable
d.) $6,832 Favorable
e.) $32,916 Unfavorable
The spending variance for tour operating costs in August is $6,832 unfavorable.
To calculate the spending variance, we need to compare the actual tour operating costs with the expected costs based on the given cost formula. The formula states that the monthly cost is $56,880 plus $2,884 per route plus $16 per passenger.
For the expected activity levels of 87 routes and 259 passengers, the expected cost can be calculated as follows:
Expected cost = $56,880 + ($2,884 * 87) + ($16 * 259) = $56,880 + $251,508 + $4,144 = $312,532
However, the actual activity levels were 96 routes and 267 passengers. Plugging these values into the cost formula:
Actual cost = $56,880 + ($2,884 * 96) + ($16 * 267) = $56,880 + $277,344 + $4,272 = $338,496
The spending variance is the difference between the actual cost and the expected cost:
Spending variance = Actual cost - Expected cost = $338,496 - $312,532 = $25,964
Since the actual tour operating costs in August were $305,100, which is lower than the expected cost, the spending variance is unfavorable. Therefore, the correct answer is option b) $6,832 Unfavorable.
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National Business Machine Co. (NBM) has $2 million of extra cash after taxes have been paid. NBM has two choices to make use of this cash. One alternative is to invest the cash in financial assets. The resulting investment income will be paid out as a special dividend at the end of three years. In this case, the firm can invest in Treasury bills yielding 2 percent or a 4 percent preferred stock. IRS regulations allow the company to exclude from taxable income 70 percent of the dividends received from investing in another company’s stock. Another alternative is to pay out the cash now as dividends. This would allow the shareholders to invest on their own in Treasury bills with the same yield, or in preferred stock. The corporate tax rate is 36 percent. Assume the investor has a 32 percent personal income tax rate, which is applied to interest income and preferred stock dividends. The personal dividend tax rate is 15 percent on common stock dividends.
National Business Machine Co. (NBM) has $2 million of extra cash and needs to decide how to utilize it. The company has two options: invest the cash in financial assets or distribute it as dividends to shareholders. If NBM chooses to invest in financial assets, it can opt for Treasury bills with a 2 percent yield or a 4 percent preferred stock.
The investment income from these assets will be paid out as a special dividend after three years. However, if NBM decides to pay out the cash as dividends, shareholders can invest in Treasury bills or preferred stock on their own. The corporate tax rate is 36 percent, while the personal income tax rates for interest income, preferred stock dividends, and common stock dividends are 32 percent, 32 percent, and 15 percent, respectively.
The decision between investing in financial assets or paying out dividends depends on the tax implications and potential returns for both the company and its shareholders. If NBM chooses to invest in Treasury bills or preferred stock, the investment income received after three years will be subject to corporate taxes at a rate of 36 percent. However, IRS regulations allow NBM to exclude 70 percent of the dividends received from investing in another company's stock from taxable income. On the shareholder's side, they will also be subject to personal income taxes on the investment income earned from Treasury bills or preferred stock, with rates of 32 percent for both interest income and preferred stock dividends. Common stock dividends, on the other hand, are taxed at a lower rate of 15 percent.
Alternatively, if NBM decides to distribute the cash as dividends, shareholders can individually invest in Treasury bills or preferred stock. In this case, NBM will still be subject to corporate taxes on the dividend payment at a rate of 36 percent. Shareholders will receive the dividends and be responsible for personal income taxes on the investment income earned, with rates of 32 percent for both interest income and preferred stock dividends, and 15 percent for common stock dividends.
The optimal decision for NBM will depend on various factors, including the expected returns from the different investment options, the shareholders' tax situations, and the company's overall financial objectives. A thorough analysis considering these factors is necessary to determine the most beneficial course of action for NBM and its shareholders.
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If the price in a competitive market is $30, and the supply curve is given by the equation p
A STOU
B. $100
© C. $1.000
D.5200
The supply curve equation given as p = 10Q + 200 represents a linear supply curve where the price (p) is determined by the quantity supplied (Q).
To find the equilibrium price in the competitive market, we can set the quantity supplied equal to the quantity demanded and solve for the price.
By substituting the given price of $30 into the supply curve equation, we have:
30 = 10Q + 200
Solving for Q, we get:
10Q = -170
Q = -17
However, negative quantities do not make sense in this context, so we can conclude that there is no equilibrium quantity and price for the given supply curve equation and the price of $30 in the competitive market.
It's important to note that the supply curve equation provided may not accurately represent the supply behavior in a real-world market scenario. Supply curves are typically upward sloping, indicating a positive relationship between price and quantity supplied. In this case, the equation results in a negative slope, which is not consistent with the principles of supply and demand.
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On November 13, Underhill Incorporated, a calendar year taxpayer, purchased a business for a $962,900 lump-sum price. The business’s balance sheet assets had the following appraised FMV:
Accounts receivable $ 51,500
Inventory 191,000
Tangible personality 625,000
$ 867,500
1) What is the cost basis of the goodwill acquired by Underhill on the purchase of this business?
2) Compute Underhill’s goodwill amortization deduction for the year of purchase.
3) Assuming a 21 percent tax rate, compute the deferred tax asset or deferred tax liability (identify which) resulting from Underhill’s amortization deduction.
The cost basis of goodwill acquired by Underhill is $95,400. The goodwill amortization deduction for the year of purchase is $12,720, resulting in a deferred tax liability of $2,671.20.
1) Goodwill is equal to the purchase price less the FMV of all identifiable net assets. The cost basis of goodwill acquired by Underhill on the purchase of this business is:Cost basis of goodwill acquired by Underhill = Purchase price - FMV of all identifiable net assets= $962,900 - ($51,500 + $191,000 + $625,000)= $962,900 - $867,500= $95,4002) 2) Underhill's goodwill amortization deduction for the year of purchase is calculated as follows:Goodwill amortization = (Cost basis of goodwill acquired ÷ 15 years) x (2 ÷ 12) = ($95,400 ÷ 15) x (2 ÷ 12) = $12,7203) 3) If Underhill’s goodwill amortization deduction for the year of purchase is $12,720, then their deferred tax liability resulting from this amortization deduction is:Deferred tax liability = Goodwill amortization x Tax rate = $12,720 x 21% = $2,671.20Therefore, Underhill will have a deferred tax liability of $2,671.20 resulting from their goodwill amortization deduction.For more questions on tax liability
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what are some possible reasons for a direct labor time variance? utility usage decrease less qualified workers office supplies spending sales decline
Given information:Wellplace Insurance Company processes insurance policy applications in batches of 25. One day, they had 15 batches to process and, after inspection, it was found that 4 batches had nonconforming policies.
One batch had 4 nonconformances, another had 7, another had 2, and another had 6 nonconformance.A. Proportion nonconforming for each batch:Non-conformances Proportion of nonconformances (rounded to two decimal places)1st batch 4 0.162nd batch 7 0.283rd batch 2 0.084th Batch 6 0.24B. Nonconformances per unit (NPU), in total for the 15 batches:Total non-conformances = 4 + 7 + 2 + 6 = 19Total number of units = 15 × 25 = 375∴Nonconformances per unit (NPU) = Total non-conformances/Total number of units= 19/375= 0.0507 (rounded to four decimal places)Hence, the proportion nonconforming for each batch and the nonconformances per unit (NPU), in total for the 15 batches is as follows:1st batch: 0.16, 2nd batch: 0.28, 3rd batch: 0.08, and 4th Batch: 0.24 and Nonconformances per unit (NPU) = 0.0507.
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Answer:
By calculating direct labor time variance, it allows you to see if you overused or underused the standard labor hours that were expected to be used to make the actual units produced. The actual hours used can differ from the standard hours because of improved efficiencies in production, carelessness or inefficiencies in production, or poor estimation when creating the standard usage.
Explanation:
The direct labor time variance compares the actual labor hours used to the standard labor hours that were expected to be used to make the actual units produced.
With either of these formulas, the actual hours worked refers to the actual number of hours used at the actual production output. The standard rate per hour is the expected hourly rate paid to workers. The standard hours are the expected number of hours used at the actual production output. If there is no difference between the actual hours worked and the standard hours, the outcome will be zero, and no variance exists.
If the actual hours worked are less than the standard hours at the actual production output level, the variance will be a favorable variance. A favorable outcome means you used fewer hours than anticipated to make the actual number of production units. If, however, the actual hours worked are greater than the standard hours at the actual production output level, the variance will be unfavorable. An unfavorable outcome means you used more hours than anticipated to make the actual number of production units.
The actual hours used can differ from the standard hours because of improved efficiencies in production, carelessness or inefficiencies in production, or poor estimation when creating the standard usage.
Maslow's needs hierarchy theory does not discuss which topic
A physiological needs.
B. belongingness \ love C. safety needs. D. drive to acquire E. self-actualization O d. O e self-actua
According to the Maslow's Needs Hierarchy Theory, the drive to acquire is not discussed. The correct options is D) Drive to acquire.
Maslow's hierarchy of needs is a motivational theory in psychology that describes the five-tier model of human needs. The five different needs that Maslow describes in his hierarchy are physiological, safety, love/belonging, esteem, and self-actualization.The hierarchy is described as a pyramid, with the lower, basic needs at the bottom and the higher, more advanced needs at the top.
According to Maslow, people must satisfy lower-level needs before they can proceed to the next level.The five levels of Maslow's Hierarchy of Needs are as follows:
Physiological Needs: The physiological needs are the most basic human needs and include food, water, shelter, and sleep.
Safety Needs: After physiological needs are satisfied, safety needs become important. Safety needs include personal security, financial security, health, and well-being, and protection from accidents or harm.
Love/Belonging Needs: Love and belonging needs include social interaction and social contact. It refers to the need for love, affection, and companionship.
Esteem Needs: Esteem needs include the need for self-esteem and respect from others.
Self-Actualization: Self-actualization is the need to be the best one can be. It refers to the realization of a person's full potential. The drive to acquire is not discussed in the Maslow's Needs Hierarchy Theory.
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Your cousin works for an off shore oil company in the Atlantic Ocean. The work is somewhat dangerous and requires your cousin to be away from his family for long periods of time. Although your cousin does not love his job, he plans on staying until he has served at least 10 years of service as at that time he will be eligible for a long service payment of $20,000. This type of reward system is known ___
a. Organizational citizenship behavior b. Danger Pay c. Affective Commitment d. Golden Handcuffs e. A locked in term Next page
The type of reward system that your cousin works under for his oil company is known as Golden Handcuffs. Golden handcuffs refer to the benefits and financial incentives that an employee is eligible to receive only when they have stayed with a company for an extended period of time.
In this case, the reward is a long-service payment of $20,000 that your cousin will be eligible for after serving at least 10 years of service for his off-shore oil company in the Atlantic Ocean.Golden handcuffs are often used to incentivize employees to stay with an organization long term. They are frequently used by companies with unique or high-level expertise to retain employees with specialized knowledge or skills. Golden handcuffs may also help to keep employees who may have otherwise moved on to work for competitors. To summarize, the type of reward system that your cousin is working under is known as Golden Handcuffs, which incentivizes employees to stay with an organization long term.
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Explain Carter's Inc. advocacy groups. They need to be groups that seek to influence the business to comply with the objectives of the advocacy groups, not charities the business has chosen to partner with for charitable purposes. Please give citations.
Carter's Inc. is an American producer of children's clothing. Advocacy groups are organizations that seek to influence the activities of a business by making suggestions or seeking certain policy changes.
They may be a political, environmental, or social group. The company focuses on charitable partnerships that serve the interests of its customers and the broader community. Carter's has chosen to partner with numerous organizations to aid children in need of basic necessities, such as clothing and food.Carter's established a 2020 pledge to make sure that they utilize their significant scale and leadership position to benefit and support children and families, which includes the company's policy, environmental, and social objectives, as well as the promotion of responsible business practices.
To ensure that they were on track to achieve their 2020 objective, they evaluated the current status of their CSR and began partnering with more advocacy groups. The organizations with which Carter's partners reflect its business aims and serve to advance its broader business strategy.
These groups include the National Diaper Bank Network, Feed the Children, and Shoes That Fit. Carter's has been a long-time supporter of the Child Mind Institute, an advocacy organization that seeks to help children and young adults with mental health and learning disabilities.With these advocacy groups, Carter's has built a long-standing tradition of making a positive contribution to society by utilizing its business expertise and resources. These organizations are significant in assisting Carter's in maintaining its social responsibility goals, which are in line with its corporate mission, strategy, and values.
Cited source: What is an advocacy group? What are some common types?
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which financial product typically pays the highest rate of interest
High-yield or high-interest savings accounts and certificates of deposit (CDs) typically pay the highest rates of interest among financial products.
High-yield savings accounts and CDs are known for offering higher interest rates compared to other financial products. These accounts are designed to provide individuals with a competitive return on their deposited funds.
High-yield savings accounts typically offer higher interest rates than traditional savings accounts, allowing individuals to earn more on their savings. These accounts are offered by various financial institutions and often come with certain requirements or limitations, such as minimum deposit amounts or maintaining a certain balance.
Certificates of deposit (CDs) are time-based deposits that offer a fixed interest rate for a specific term, ranging from a few months to several years. The longer the term and the larger the deposit, the higher the interest rate tends to be. CDs are considered relatively low-risk investments as they are backed by the deposit-taking institution.
It's important to note that interest rates can vary over time and depend on prevailing market conditions. It's advisable to research and compare rates offered by different financial institutions to find the highest rate of interest available for a particular financial product.
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Olivia has been asked to evaluate a project. The project is estimated to have a first cashflow of $120k, which will occur one year from today. The cashflows will increase by 4% per year for 4 additional years. After that point, the cashflows will remain the same for 5 years. The upfront cost to take the project is $950k, and the appropriate annual discount rate is 6%. What is the project’s NPV?
Monopolistic competition may or may not be efficient, depending on certain conditions.
Monopolistic competition is a market structure characterized by many firms competing against each other while offering differentiated products. In monopolistic competition, firms have some degree of market power, allowing them to differentiate their products and potentially earn higher profits in the short run. However, this market structure may not always lead to overall efficiency.
Monopolistic competition might be efficient if certain conditions are met. Firstly, there should be relatively low barriers to entry and exit, allowing new firms to enter the market and compete with existing ones. This competition encourages innovation, efficiency, and lower prices for consumers.
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the expenses for April are ?Data for April April net income: Beginning owner's equity: Owner's withdrawals: Ending owner's equity: April revenue: ts $ 16,000 $ 27,000 $ 5,400 $ 40,000 $ 60,000
The expenses for April can be calculated by subtracting the net income from the revenue. In this case, the net income for April is $16,000, and the revenue is $60,000.
Therefore, the expenses for April are $60,000 - $16,000 = $44,000.To determine the expenses for April, we need to consider the given financial information. The net income for April is $16,000, which represents the profit earned by the business during that month. This figure is obtained by subtracting the expenses from the revenue. However, since we are trying to find the expenses, we need to work backward.
The beginning owner's equity is $27,000, and the owner's withdrawals amount to $5,400. Owner's withdrawals represent the amount of money the owner took out of the business for personal use. By subtracting the owner's withdrawals from the beginning owner's equity, we can find the adjusted beginning owner's equity, which is $27,000 - $5,400 = $21,600. Now, to find the expenses, we subtract the net income from the adjusted beginning owner's equity. Therefore, the expenses for April are $21,600 - $16,000 = $5,600.
It's worth noting that the given information does not provide a direct breakdown of expenses. It only provides key financial figures such as net income, revenue, beginning owner's equity, and owner's withdrawals. These figures can be used to infer the expenses indirectly by following the accounting equation: Assets = Liabilities + Owner's Equity. By analyzing the changes in owner's equity and other financial data, we can calculate the expenses for the given period.
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if the yield to maturity on a bond is lower than the coupon rate, which of the following is most likely to be true?group of answer choices
A. the face amount is more than the maturity B. yield to maturity is higher than the current bond C. sells at a current yield is lower than the coupon rate.
If the yield to maturity on a bond is lower than the coupon rate, it is most likely that the bond sells at a premium, meaning the bond's market price is higher than its face value.
The yield to maturity (YTM) is the total return anticipated on a bond if it is held until its maturity date. The coupon rate, on the other hand, is the fixed interest rate that the bond pays annually based on its face value. When the YTM is lower than the coupon rate, it indicates that the bond is selling at a premium. This means that the bond's market price is higher than its face value. Investors are willing to pay more for the bond because the coupon payments are higher than what they would expect to earn from other investments with similar risk profiles. As a result, the bond's yield to maturity is reduced. Conversely, if the YTM were higher than the coupon rate, it would suggest that the bond sells at a discount, meaning the bond's market price is lower than its face value. In this case, the bond's yield to maturity would be higher as investors would expect a higher return to compensate for the lower coupon payments. Therefore, when the yield to maturity on a bond is lower than the coupon rate, it is most likely that the bond sells at a premium.
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If the market rate is 8%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Enter your answers in dollars not in millions. Round "Market interest rate" to 1 decimal place.)Bond Characteristics AmountFace amount $39,100,000Interest payment $1,759,500Market interest rate 4.0%Periods to maturity 40Issue price
The issue price of the bond is $80,831,045.30 when the face amount is $39,100,000, the interest payment is $1,759,500, the market interest rate is 4%, and the periods to maturity are 40.
To calculate the issue price of the bond, we need to use the present value of an annuity formula. The formula is:
Present Value of an Annuity = Payment x (1 - 1 / (1 + r)^n) / r
where r is the market interest rate and n is the number of periods to maturity.
First, we need to calculate the payment, which is the annual interest payment of $1,759,500.
Next, we need to calculate the discount rate, which is the market interest rate of 4% divided by 2 since the bond pays semi-annual interest. Therefore, the discount rate is 2%.
Next, we need to calculate the number of periods to maturity, which is 40 years times 2 since the bond pays semi-annual interest. Therefore, the number of periods to maturity is 80.
Using the present value of an annuity formula, we can calculate the issue price as follows:
Present Value of an Annuity = $1,759,500 x (1 - 1 / (1 + 0.02)^80) / 0.02
Present Value of an Annuity = $1,759,500 x 45.9806
Present Value of an Annuity = $80,831,045.30
Therefore, the issue price of the bond is $80,831,045.30.
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Why might a company decide to outsource (ie, buy) a product that they currently make in their company-owned operations? a) Because they want to protect their proprietary technology. b) Because they don't have the capacity in their internal factory to meet demand. c) Because they want to have better control of transportation and warehousing costs. d) Because they want to have better control of lead time.
A company might decide to outsource a product that they currently make in their company-owned operations for several reasons. One main reason could be (b) because they don't have the capacity in their internal factory to meet the demand.
If the company experiences a sudden increase in demand or lacks the necessary resources to scale up production, outsourcing can be a viable solution. By purchasing the product from an external supplier, the company can ensure timely delivery to customers and avoid potential bottlenecks in their internal operations.
Outsourcing can also be driven by other factors. For instance, option (a) may be relevant if the company wants to protect its proprietary technology. By outsourcing the manufacturing process, they can prevent exposing their trade secrets and intellectual property to competitors.
Option (c) may be applicable if the company aims to control transportation and warehousing costs more effectively by leveraging the expertise and infrastructure of specialized logistics providers.
Lastly, option (d) is valid if the company desires better control of lead time, ensuring prompt delivery to customers by relying on suppliers who have streamlined production and distribution processes. Each of these factors can influence a company's decision to outsource a product they currently produce in-house.
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QUESTION 2. Sort-out-your-life Chantal Durand and Louis Bouvet have spent the last 18 months in lockdown. During this time, they decided that they should start a business providing personal coaching.
QUESTION 2. Sort-out-your-life Chantal Durand and Louis Bouvet have spent the last 18 months in lockdown. During this time, they decided that they should start a business providing personal coaching.
Starting a business providing personal coaching can be an exciting venture for Chantal Durand and Louis Bouvet. Personal coaching has gained popularity in recent years, and with their passion and commitment, they can potentially help individuals improve their lives and achieve their goals. However, before diving into the business, they should carefully consider various aspects such as market research, target audience, competition, pricing, marketing strategies, and legal requirements. Developing a business plan and seeking guidance from professionals can greatly contribute to their success. With proper planning and execution, Chantal and Louis can turn their lockdown idea into a thriving personal coaching business, providing valuable services to their clients.
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Use the 2019 Form 10-K (fiscal year ended December 29, 2019) for Coca-Cola Bottling Co.
Consolidated to complete the following requirements. Be aware that Coca-Cola Bottling Co. Consolidated (COKE) is a separate company from the Coca-Cola Company (KO), so do not
confuse them. You can use the EDGAR system or the company's website at:www.cokeconsolidated.com.
REQUIRED
1. Does COKE consider shipping and handling costs and advertising costs to be direct or
indirect costs in relation to the manufacturing of its products?
a.___________________________
2. Based on COKE's discussion the seasonality of its business ("Item 1. Business"), should
the depreciation of production equipment recorded in a given month be based on the
volume of drinks produced that month, or should the depreciation for each month be
1/12th of the estimated annual depreciation COKE expects to incur? Explain your
answer.
1. COKE considers shipping and handling costs to be direct costs in relation to the manufacturing of its products, while advertising costs are considered indirect costs.
2. Depreciation of production equipment recorded in a given month should be based on the volume of drinks produced that month. As explained in "Item 1. Business," COKE's business is subject to seasonal fluctuations due to the demand for its products. During the peak season, production may be higher than during the off-season. Therefore, it would be more accurate to base the depreciation of production equipment on the volume of drinks produced each month rather than using 1/12th of the estimated annual depreciation COKE expects to incur. This method would more accurately reflect the usage of the production equipment during the varying levels of production throughout the year.
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2) Given a GP problem: (M's are priorities, M₁ > M₂ > ...) = M₁: X₁ + X2 +d₁¯¯-d₁+ 60 (Profit) + x2 +d₂¯¯ - d₂+ M₂: = X1 75 (Capacity) M3: X1 + d¾¯ - d3+ = 45 (Produce at least 45) 50 (d4 is undesirable) M4: = X2 +d4-d4+ M5: = X1 + d5d5 10 (d5 is undesirable) a) Write the objective function.
The objective function for the given GP problem is to maximize the profit. The objective function can be written as follows:
Maximize: Profit =[tex]X₁ + X₂ + d₁¯¯ - d₁ + 60[/tex]
In this case, X₁ represents the decision variable for the quantity produced by X₁, X₂ represents the decision variable for .
the quantity produced by X₂, d₁ represents the deviation variable for the undesirable outcome d₁, and d₁¯¯ represents the favorable outcome for d₁. The objective function includes the profit gained from the production quantities X₁ and X₂, as well as the deviations d₁¯¯ and d₁. The constant value of 60 is added to the profit to account for additional factors influencing the overall objective. The objective is to find the values for X₁ and X₂ that maximize the profit.
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ETHICAL DECISIONS
DECISION 1: MICROSOFT CORPORATION IS THE DEFENDANT IN NUMEROUS LAWSUITS CLAIMING UNFAIR TRADE PRACTICES. MICROSOFT HAS STRONG INCENTIVES
NOT TO DISLOSE THESE CONTINGENT LIABILITIES; HOWEVER, IFRS AND ASPE GENERALLY REQUIRE THAT COMPANIES DISCLOSE THIER CONTINGENT LIABILITIES IN
THE NOTES TO THIER FINANCIAL STATEMENTS.
REQUIREMENT
1. WHY WOULD A COMPANY PREFER NOT TO DISCLOSE ITS CONTINGENT LIABILITIES?
2. DESCRIBE HOW A BANK COULD BE HARMED IF A COMPANY SEEKING A LOAN DID NOT DISCLOSE ITS CONTINGENT LIABILITIES.
3. WHAT IS THE ETHICAL TIGHTROPE THAT COMPANIES MUST WALK WHEN THEY REPORT THIER CONTINGENT LIABILITIES?
1. Companies would prefer not to disclose their contingent liabilities in order to avoid negative impacts on their business reputation and on the investment of stakeholders. They might fear that these disclosures could cause legal issues, decrease customer loyalty, or decrease the company's stock price.
2. A bank could be harmed if a company seeking a loan did not disclose its contingent liabilities. The company could potentially become insolvent and incapable of repaying the loan. If the bank was unaware of this risk, they would be unable to prepare for it.
3. The ethical tightrope that companies must walk when reporting their contingent liabilities is balancing the needs of the company with the rights of their stakeholders. Companies have a responsibility to be transparent with their investors and other stakeholders, but also have an obligation to protect their own interests.
They must make decisions that are fair and honest while also being mindful of their reputation and long-term sustainability.
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