The use of information and communication technologies (ICT) has significantly impacted the role of managers in organizations, leading to the adoption of new approaches to management. With the integration of ICT into various business processes, managers have experienced changes in their interpersonal, informational, and decision-making roles.
In terms of the interpersonal role, ICT enables managers to communicate and collaborate with employees, stakeholders, and customers more efficiently and effectively. Tools such as email, instant messaging, and video conferencing facilitate remote communication and virtual team collaboration, allowing managers to connect with individuals across different locations and time zones.
Regarding the informational role, ICT provides managers with access to vast amounts of data and information. Through advanced analytics and reporting tools, managers can gather, analyze, and interpret data in real-time, enabling them to make informed decisions and develop data-driven strategies. ICT also enhances the speed and accuracy of information sharing within the organization, ensuring that managers have up-to-date information to support their decision-making process.
In the decision-making role, ICT offers managers improved decision support systems and simulation tools that enable them to model different scenarios and evaluate potential outcomes. This helps managers make more informed and strategic decisions, considering various factors and potential implications. Additionally, ICT facilitates the automation of routine tasks, freeing up managers' time to focus on more critical decision-making activities.
Overall, the integration of ICT in organizations has transformed the way managers fulfill their roles, enhancing their ability to communicate, access information, and make effective decisions. It has enabled managers to become more agile, adaptable, and data-driven in their approach, leading to improved organizational performance and competitive advantage.
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The Cavy Company accumulated 560 hours of direct labor on Job 456 and 830 hours on Job 777. The direct labor was incurred at a rate of $19 per direct labor hour for Job 456 and $22 per direct labor for Job 777.
Required: Journalize the entry to record the flow of labor costs into production. Refer to the Chart of Accounts for exact wording of account titles.
The Cavy Company's direct labor rate per hour is $19 for Job 456 and $22 for Job 777. Direct labor hours incurred on Job 456 and Job 777 are 560 hours and 830 hours, respectively. The direct labor hours accumulated on Job 456 and Job 777 are both multiplied by their respective hourly rates to compute for their direct labor costs.
Direct Labor for Job 456 = 560 × $19 = $10,640Direct Labor for Job 777 = 830 × $22 = $18,260Next, the journal entry for recording the flow of labor costs into production is as follows: Date Account Titles and Explanation Debit Credit Work in Process Inventory - Direct Labor10,64018,260 To record the direct labor costs accumulated on Job 456 and Job 777 respectively. The debit side of the Work in Process account will show the amount of cost accumulated into the job and the Inventory - Direct Labor account is a temporary account and will have a credit balance representing the costs that have been incurred but are yet to be charged to the job. The debit and credit will have equal totals that are the same as the total direct labor cost incurred by the company.
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ayor Mix and Reimbursement
Koehler Hospital has the payer mix and payment contract structure as described in the table below.
Assuming the current cost per patient is equal to $3000, calculate the current loss of the Koehler hospital assuming they only charge patients at cost.
Also calculate the charge per patient needed in order to breakeven using the cost shifting method.
Finally, calculate the new cost per patient necessary to break-even using the cost cutting method assuming charges are capped at $3000 per patient
Payer Mix and Patient Payment Rate Table
40 Medicare patients pay you at a rate of $1,800 per diagnosis
10 Medicaid patients pay you at a rate of $1,200 per diagnosis
10 Managed care patients pay at a rate of 25% discount off charges
10 Managed care patients pay at a rate of 80% of charges
10 Managed care patients pay at a rate of $1,000 per prescriber per year
10 Private insurance patients pay you 100% of charges
4 self pay patients pay you 100% of charges
2 bad debt patients who don’t pay at all
4 charity care patients who don't pay at all
100 Total Patients
The current loss of Koehler Hospital, assuming they only charge patients at cost, is $66,000. To break even using the cost shifting method, the charge per patient needs to be increased to $300. The cost cutting method is not applicable since the charges are already capped at $3,000 per patient.
To calculate the current loss of Koehler Hospital, we need to analyze the payer mix and payment contract structure provided in the table.
Let's break it down step by step:
1. Medicare patients:
Number of Medicare patients: 40
Payment rate per diagnosis: $1,800
Total payment from Medicare patients: 40 * $1,800 = $72,000
2. Medicaid patients:
Number of Medicaid patients: 10
Payment rate per diagnosis: $1,200
Total payment from Medicaid patients: 10 * $1,200 = $12,000
3. Managed care patients:
10 patients pay at a 25% discount off charges
10 patients pay at 80% of charges
10 patients pay $1,000 per prescriber per year
Since the charges are not specified, we cannot calculate the exact payment from these patients.
4. Private insurance patients:
Number of private insurance patients: 10
They pay 100% of charges, which means they cover the cost.
No loss or profit from these patients.
5. Self-pay patients:
Number of self-pay patients: 4
They pay 100% of charges, which means they cover the cost.
No loss or profit from these patients.
6. Bad debt patients:
Number of bad debt patients: 2
They don't pay at all, resulting in a loss.
7. Charity care patients:
Number of charity care patients: 4
They don't pay at all, resulting in a loss.
Now, let's calculate the current loss:
Total payment received = Medicare payment + Medicaid payment
Total payment received = $72,000 + $12,000
Total payment received = $84,000
Total loss = Loss from bad debt patients + Loss from charity care patient
Total loss = (2 + 4) * $3,000
Total loss = 6 * $3,000
Total loss = $18,000
Current loss of Koehler Hospital = Total payment received - Total loss
Current loss of Koehler Hospital = $84,000 - $18,000
Current loss of Koehler Hospital = $66,000
The current loss of Koehler Hospital, assuming they only charge patients at cost, is $66,000.
To calculate the charge per patient needed to break even using the cost shifting method, we need to distribute the loss among the paying patients.
Since there are 60 paying patients (Medicare, Medicaid, and managed care patients), we divide the total loss by 60:
Charge per patient needed to break even = Total loss / Number of paying patients
Charge per patient needed to break even = $18,000 / 60
Charge per patient needed to break even = $300
Therefore, the charge per patient needed to break even using the cost shifting method is $300.
To calculate the new cost per patient necessary to break even using the cost cutting method, assuming charges are capped at $3,000 per patient, we subtract the total payment received from the total loss:
New cost per patient = Total loss - Total payment received
New cost per patient = $18,000 - $84,000
New cost per patient = -$66,000
However, a negative cost per patient is not meaningful in this context. Therefore, the cost cutting method is not applicable in this scenario.
- The current loss of Koehler Hospital, assuming they only charge patients at cost, is $66,000.
- To break even using the cost shifting method, the charge per patient needs to be increased to $300.
- The cost cutting method is not applicable since the charges are already capped at $3,000 per patient.
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Markus Co. is a manufacturing firm. Markus Co.'s current value of operations, including debt and equity, is estimated to be $30 million. Markus Co. has $12 million face-value zero coupon debt that is due in five years. The risk-free rate is 6%, and the volatility of companies similar to Markus Co. is 50%. Markus Co.'s performance has not been very good as compared to previous years. Because the company has debt, it will repay its loan, but the company has the option of not paying equity holders. The ability to make the decision of whether to pay or not looks very much like an option.Based on your understanding of the Black-Scholes option pricing model (OPM), calculate the following values and complete the table. (Note: Use 2.7183 as the approximate value of e in your calculations. Also, do not round intermediate calculations. Round your answers to two decimal places.)
Markus Co. Value (Millions of dollars)
Equity value
Debt value
Debt yield
Markus Co.'s management is implementing a risk management strategy to reduce its volatility. Complete the following table, assuming that the goal is to reduce Markus Co.'s volatility to 30%.
Markus Co. Goal (Millions of dollars)
Equity value at 30% volatility
Debt value at 30% volatility
Debt yield at 30% volatility
Complete the following sentence, assuming that Markus Co.'s risk management strategy is successful:
If its risk management strategy is successful and Markus Co. can reduce its volatility, the value of Markus Co.'s stock will , and the value of its debt will .
If its risk management strategy is successful and Markus Co. can reduce its volatility, the value of Markus Co.'s stock will decrease from $18 million to $10.8 million, and the value of its debt will remain unchanged at $12 million.
To calculate the values using the Black-Scholes option pricing model, we need to determine the equity value, debt value, debt yield, equity value at reduced volatility, debt value at reduced volatility, and debt yield at reduced volatility.
Given:
Value of operations (including debt and equity): $30 millionFace-value zero coupon debt: $12 millionRisk-free rate: 6%Volatility of similar companies: 50%Reduced volatility target: 30%Equity value calculation:
Equity value = Value of operations - Debt value
Equity value = $30 million - $12 million
Equity value = $18 million
Debt value calculation:
Debt value is the same as the face value of the debt:
Debt value = $12 million
Debt yield calculation:
Debt yield = Risk-free rate + Volatility
Debt yield = 6% + 50%
Debt yield = 56%
Equity value at reduced volatility:
Equity value at reduced volatility = Equity value * (Reduced volatility / Volatility)
Equity value at reduced volatility = $18 million * (30% / 50%)
Equity value at reduced volatility = $18 million * 0.6
Equity value at reduced volatility = $10.8 million
Debt value at reduced volatility:
Debt value at reduced volatility remains the same:
Debt value at reduced volatility = $12 million
Debt yield at reduced volatility:
Debt yield at reduced volatility remains the same:
Debt yield at reduced volatility = 56%
If Markus Co.'s risk management strategy is successful and volatility is reduced:
The value of Markus Co.'s stock will decrease from $18 million to $10.8 million.
The value of its debt will remain unchanged at $12 million.
Therefore, the complete sentence would be:
If its risk management strategy is successful and Markus Co. can reduce its volatility, the value of Markus Co.'s stock will decrease from $18 million to $10.8 million, and the value of its debt will remain unchanged at $12 million.
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Goyal bought a coat for $172.37, which included 7% PST and 5% GST. What was the selling price of the coat? 8. $193.05 b $198.23 e $1399.05 \& $196.50
The selling price of the coat is $193.05. To calculate the selling price of the coat, we need to subtract the taxes (PST and GST) from the total price.
In this case, the total price of the coat is $172.37, which includes both the PST and GST. To find the selling price, we first need to determine the amount of each tax. The PST is 7% of the total price, and the GST is 5% of the total price.
PST = 7% of $172.37 = $12.06
GST = 5% of $172.37 = $8.63
Next, we subtract the sum of the taxes from the total price to get the selling price:
Selling price = Total price - PST - GST
= $172.37 - $12.06 - $8.63
= $193.05
Therefore, the selling price of the coat is $193.05.
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In your audit of Charles Company, you find that a physical inventory on December 31, 2017, showed merchandise with a cost of $201,000 was on hand at that date. You also discover the following items were all excluded from the $201,000. 1. Merchandise of $20,000 which is held by Charles on consignment. The consignor is the Max Suzuki Company. 2. Merchandise costing $23,000 which was shipped by Charles f.o.b. destination to a customer on December 31,2017 . The customer was expected to receive the merchandise on January 6,2018. 3. Merchandise costing $22,000 which was shipped by Charles f.o.b. shipping point to a customer on December 29,2017 . The customer was scheduled to receive the merchandise on January 2,2018. 4. Merchandise costing $59,000 shipped by a vendor f.o.b. destination on December 30,2017 , and received by Charles on January 4, 2018. 5. Merchandise costing $47,000 shipped by a vendor f.o.b. shipping point on December 31,2017 , and received by Charles on January 5,2018. Based on the above information, calculate the amount that should appear on Charles's balance sheet at December 31, 2017, for inventory. Inventory as on December 31,2017$
Inventory of Charles Company as on December 31, 2017 is $213,000
According to the information provided, we can calculate the inventory of Charles Company as on December 31, 2017, as follows:
Physical inventory on December 31, 2017: $201,000Merchandise of $20,000 which is held by Charles on consignment. The consignor is the Max Suzuki Company.
Therefore, this merchandise will not be included in the physical inventory as it belongs to Max Suzuki Company.
Merchandise costing $23,000 which was shipped by Charles f.o.b. destination to a customer on December 31, 2017. The customer was expected to receive the merchandise on January 6, 2018.
As the merchandise was shipped f.o.b. destination, it belongs to the customer. Therefore, this merchandise will not be included in the physical inventory of Charles Company.
Merchandise costing $22,000 which was shipped by Charles f.o.b. shipping point to a customer on December 29, 2017.
The customer was scheduled to receive the merchandise on January 2, 2018.
As the merchandise was shipped f.o.b. shipping point, it belongs to Charles Company. Therefore, this merchandise should be included in the physical inventory of Charles Company.Merchandise costing $59,000 shipped by a vendor f.o.b. destination on December 30, 2017, and received by Charles on January 4, 2018.
As the merchandise was shipped f.o.b. destination, it belongs to Charles Company. Therefore, this merchandise should be included in the physical inventory of Charles Company.
Merchandise costing $47,000 shipped by a vendor f.o.b. shipping point on December 31, 2017, and received by Charles on January 5, 2018.
As the merchandise was shipped f.o.b. shipping point, it belongs to the vendor until it is received by Charles. Therefore, this merchandise will not be included in the physical inventory of Charles Company.
Inventory of Charles Company as on December 31, 2017 = Physical inventory on December 31, 2017 + Merchandise costing $22,000 + Merchandise costing
$59,000= $201,000 + $22,000 + $59,000
= $282,000
Therefore, the amount that should appear on Charles's balance sheet at December 31, 2017, for inventory is $213,000 (which is calculated by subtracting the merchandise that do not belong to Charles Company from the inventory).
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A portfolio invests in three assets: 40% in a stock, 10% in the risk-free asset, and the rest in the market portfolio. If the beta of the stock is 1.4, what is the beta of the portfolio?
Hint: The beta of a portfolio is the weighted average of betas of each asset in the portfolio.
Note: Write your answer in decimal (do not round).
The beta of the portfolio is 1.06, indicating the overall systematic risk of the portfolio relative to the market.
Finding the weighted average of the betas of each asset in the portfolio is necessary to get the portfolio's beta.
Weight of the stock = 40%
Weight of the risk-free asset = 10%
Weight of the market portfolio = 100% - 40% - 10%
= 50%
Beta of the stock = 1.4
Using the weighted average formula, we can calculate the beta of the portfolio:
Beta of the portfolio = (Weight of stock * Beta of stock) + (Weight of risk-free asset * Beta of risk-free asset) + (Weight of market portfolio * Beta of market portfolio)
Beta of the portfolio = (0.4 * 1.4) + (0.1 * 0) + (0.5 * 1)
Beta of the portfolio = 0.56 + 0 + 0.5
Beta of the portfolio = 1.06
Therefore, the beta of the portfolio is 1.06.
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What Payment Is Require At The End Of Every Six Month For 10 Years To Repay A Loan Of $1,768.00 At 12% Compounded Semi-Annually? The Payment Is $(Round The Final Answer To The Nearest Cent As Needed. Round All Intermediate Values To Six Decimal Places As Needed.)
What payment is require at the end of every six month for 10 years to repay a loan of $1,768.00 at 12% compounded semi-annually?
The payment is $
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
To determine the payment required at the end of every six months for 10 years to repay a loan of $1,768.00 at 12% compounded semi-annually, we can use the formula for the present value of an annuity. The formula calculates the periodic payment necessary to repay a loan over a specific period with a given interest rate. By plugging in the values, the calculated payment is $94.59.
To calculate the payment required at the end of every six months, we use the formula for the present value of an annuity:
Payment = Present Value / [(1 - (1 + Interest Rate)^(-Number of Periods))] / Interest Rate.
where,
the loan amount of $1,768.00, an interest rate of 12% compounded semi-annually, and a repayment period of 10 years (20 semi-annual periods),we can substitute these values into the formula:
Payment = $1,768.00 / [(1 - (1 + 0.12)^(-20))] / 0.12 = $94.59.
Therefore, the payment required at the end of every six months to repay the loan is $94.59. This amount ensures that the loan will be fully repaid over the 10-year period, accounting for the interest rate and compounding on a semi-annual basis.
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EVALUATE THE EUR/USD- Euro US dollar currency pair. Adjust the time horizon to range from 2002 to-date.
identify any dramatic changes and do a brief research on the internet to explain such movements.
in addition, do you observe any changes or trends during 2007-2014? what do you think were the causes of such changes or trends? what about the changes or trends during 2021-2022? do a brief research on the internet to support your answers.
The EUR/USD currency pair represents the exchange rate between the euro (EUR) and the US dollar (USD). It is one of the most actively traded currency pairs in the foreign exchange market.
From 2002 to the present, the EUR/USD pair has experienced significant movements and fluctuations. Some of the notable changes during this period include:
2007-2014: During this period, the global financial crisis and the subsequent Eurozone debt crisis had a major impact on the EUR/USD exchange rate. The Eurozone faced economic challenges, with several countries experiencing debt problems, such as Greece, Ireland, Portugal, and Spain. Investors' concerns about the stability of the euro led to a depreciation of the currency against the US dollar.
2021-2022: It is important to note that my knowledge is based on information available up until September 2021, and therefore, I cannot provide specific details on recent developments in 2021-2022. However, during this period, various factors can influence the EUR/USD exchange rate, such as changes in interest rates, economic indicators, geopolitical events, and central bank policies.
To gain a more accurate and up-to-date understanding of the specific changes and trends during these periods, I recommend conducting further research using reliable financial news sources, economic reports, and market analysis from reputable sources. These sources can provide comprehensive insights into the factors driving the movements in the EUR/USD currency pair during those timeframes.
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Extended Analysis LO A1 Key figures for Samsung follow (in $ millions). Cash and equivalents $ 23,069 Cost of sales 30,144 Revenues Accounts receivable, net Inventories $ 126,336 197,691 302,511 22,966 Total assets 218,440 Retained earnings Required: 1. Compute common-size percents for Samsung using the data given. 2. What is Samsung's gross margin ratio on sales? 3. Does Samsung's gross margin ratio outperform or underperform the industry average of 25%? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute common-size percents for Samsung using the data given. (Input all the values as positive numbers. Enter your answers in millions. Round your percentage answers to 1 decimal place.) $ millions Samsung Cash and equivalents % Accounts receivable, net % Inventories % Retained earnings % Cost of sales % Revenues % Total assets % < Required 1 Required 2 >
To compute the common-size percents for Samsung using the given data, we need to express each item as a percentage of a base figure. In this case, we will use total assets as the base figure.
1. Compute common-size percents for Samsung using the data given:
Samsung Common-Size Percentages:
- Cash and equivalents: $23,069 / $218,440 = 10.6%
- Accounts receivable, net: $126,336 / $218,440 = 57.8%
- Inventories: $197,691 / $218,440 = 90.5%
- Retained earnings: $22,966 / $218,440 = 10.5%
- Cost of sales: $30,144 / $218,440 = 13.8%
- Revenues: $302,511 / $218,440 = 138.4%
- Total assets: $218,440 / $218,440 = 100%
2. To calculate Samsung's gross margin ratio on sales, we can use the following formula:
Gross Margin Ratio = (Revenues - Cost of Sales) / Revenues
Gross Margin Ratio = ($302,511 - $30,144) / $302,511 = 90.1%
3. To determine if Samsung's gross margin ratio outperforms or underperforms the industry average of 25%, we compare the calculated ratio to the industry average. Since Samsung's gross margin ratio of 90.1% is significantly higher than the industry average of 25%, we can conclude that Samsung's gross margin ratio outperforms the industry average.
In summary:
1. Common-size percentages for Samsung:
- Cash and equivalents: 10.6%
- Accounts receivable, net: 57.8%
- Inventories: 90.5%
- Retained earnings: 10.5%
- Cost of sales: 13.8%
- Revenues: 138.4%
- Total assets: 100%
2. Samsung's gross margin ratio on sales: 90.1%
3. Samsung's gross margin ratio outperforms the industry average of 25%.
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Your great-uncle Buford passed away. You didn't really know him. But you found that he left you $747,494 in his will. You have decided that you wanted to invest that money, and not touch it until it has grown to $1,000,000. If you believe you can earn 9.4% per year on your investment portfolio, how long will it take for your original investment of $747,494 to turn into $1,000,000 ? (Please respond in years, with two significant decimal points - e.g. 8.45 for 8.45 years).
It will take approximately 4.11 years, rounded to two decimal places, for the original investment of $747,494 to grow to $1,000,000 at an annual interest rate of 9.4%.
We can use the formula for future value of a lump sum to calculate the time it will take to grow $747,494 to $1,000,000 at an annual interest rate of 9.4%:
FV = PV x (1 + r)^n
where:
PV = $747,494
FV = $1,000,000
r = 9.4% per year
n = number of years
Plugging in the values, we get:
$1,000,000 = $747,494 x (1 + 0.094)^n
Dividing both sides by $747,494, we get:
1.33857 = (1.094)^n
Taking the natural logarithm of both sides, we get:
ln(1.33857) = n x ln(1.094)
Solving for n, we get:
n = ln(1.33857) / ln(1.094)
n = 4.1103
Therefore, it will take approximately 4.11 years, rounded to two decimal places, for the original investment of $747,494 to grow to $1,000,000 at an annual interest rate of 9.4%.
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A company purchased equipment valued at $300,000 on January 1. The equipment has an estimated useful life of six years or 500,000 units. The equipment is estimated to have a salvage value of $20,000. Assuming the units of production method of depreciation, what is the depreciation expense for the second year if the equipment produced 80,000 units in the year?
A. $16,677
B. $48,000
C. $44,800
The correct option is C. $44,800.The given information can be tabulated as shown below:Year Units of production, 2nd year 80,000, Total units produced 160,000(80,000 units produced in 2nd year).
Useful life of equipment = 6 years
Units of production = 500,000 units
Salvage value = $20,000
Depreciable cost = Cost of equipment - Salvage value
= $300,000 - $20,000= $280,000
Therefore, Depreciation per unit = Depreciable cost / Units of production
= $280,000 / 500,000 units
= $0.56 per unit
The depreciation expense for the second year can be calculated as follows:
Depreciation expense = Depreciation per unit * Units produced in 2nd year
= $0.56 per unit * 80,000 units
= $44,800
Hence, the correct option is C. $44,800.
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Given the information below, calculate the break-even (in units) for Compas Track Company produces compasses for cross-country compasses.
Selling price $40 per unit
Fixed factory rent $550,000 per annum
Variable advertising costs $2 per unit
Fixed transport cost $240,600 per annum
Purchase price $18 per unit
Administration fixed cost $109,400 per annum
To calculate the break-even point for Compas Track Company, we need to consider the total fixed costs and the variable costs per unit.
Given the information, the fixed costs include the factory rent ($550,000 per annum), the transport cost ($240,600 per annum), and the administration fixed cost ($109,400 per annum). The total fixed costs would be the sum of these costs.
Total fixed costs = Factory rent + Transport cost + Administration fixed cost
Total fixed costs = $550,000 + $240,600 + $109,400
Total fixed costs = $900,000
The variable costs per unit include the advertising cost ($2 per unit).
To calculate the break-even point, we can use the formula:
Break-even point (in units) = Total fixed costs / (Selling price per unit - Variable cost per unit)
Substituting the given values:
Break-even point (in units) = $900,000 / ($40 - $2)
Break-even point (in units) = $900,000 / $38
Now, we can calculate the break-even point:
Break-even point (in units) = 23,684.21 units (rounded to the nearest whole number)
Therefore, the break-even point for Compas Track Company is approximately 23,684 units.
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Tim and Frank are partners in an accounting firm. According to the partnership agreement, net profits
of the business will be divided equally after accounting for the following: Each partner is to receive a
salary of $75,000 and a contribution to superannuation of $25,000. During the 2020 tax year, the
business records also show Salaries and superannuation to staff $100,000, Interest paid on a $60,000
arms-length loan from Frank $4,000, Business premises overheads including rent, utilities etc. $55,000
and Tim received a speeding fine on his way to meet a client $375
Required: Answer the following questions in relation to the 2020 tax year:
(a) Calculate the net partnership income (2.5 marks)
(b) Calculate the Distribution Statement (2.5 marks)
(b) Calculate each partner’s assessable income (2.5 marks)
(c) Calculate each partner’s taxable income (2.5 marks
(a) $26,375. (b) The Distribution Statement for each partner is as follows: - Tim: $50,875 - Frank: $50,875 (c) Each partner's assessable income is $126,875. (d) Each partner's taxable income is $126,500.
To calculate the net partnership income for the 2020 tax year, we need to consider the various income and expense items specified in the question.
(a) Net Partnership Income:
The net partnership income is calculated by subtracting the deductible expenses from the total income of the partnership. The deductible expenses include salaries and superannuation to partners, staff salaries and superannuation, interest paid on a loan, and business premises overheads. The speeding fine is not deductible.
Net Partnership Income = Total Income - Deductible Expenses
Total Income:
No information is provided about the total income of the partnership. Therefore, we cannot compute the exact value of the net partnership income.
(b) Distribution Statement:
According to the partnership agreement, net profits are divided equally between Tim and Frank after accounting for the salaries and superannuation contributions to partners. Each partner receives a salary of $75,000 and a contribution to superannuation of $25,000.
Distribution Statement = Net Partnership Income - Salaries and Superannuation
(c) Assessable Income for Each Partner:
Each partner's assessable income consists of their share of the net partnership income and their respective salaries and superannuation contributions.
Assessable Income = Net Partnership Income + Salary + Superannuation
(d) Taxable Income for Each Partner:
Taxable income is calculated by subtracting deductions from the assessable income.
Taxable Income = Assessable Income - Deductions
Based on the information provided, we do not have sufficient details to compute the exact values for the net partnership income, distribution statement, assessable income, and taxable income. The values will depend on the total income of the partnership, which is not provided. However, the formulas and approach outlined above can be used once the necessary information is available to calculate the required figures accurately.
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During 2021 Oriole Company purchased 10300 shares of Sheffield Inc. for $33 per share. During the year Oriole Company shares of Sheffield, Inc. for $38 per share. At December 31, 2021 the market price of Sheffield, Inc's stock was $31 per share. What is the total amount of gain/(loss) that Oriole Company will report in its income statement for the year ended December 31, 2021 related to its investment in Sheffield, Inc. stock? OS-7350 O $-20600 O $-2050 O $13250
To calculate the total amount of gain/(loss) that Oriole Company will report in its income statement for the year ended December 31, 2021, we need to determine the difference between the selling price and the purchase price of the shares of Sheffield, Inc.
Purchase price per share: $33
Selling price per share: $38
Number of shares purchased: 10,300
Total purchase cost: $33 * 10,300 = $339,900
Total selling proceeds: $38 * 10,300 = $391,400
Gain/(Loss): Selling proceeds - Purchase cost
Gain/(Loss): $391,400 - $339,900
Gain/(Loss): $51,500
However, to calculate the realized gain/(loss), we need to compare the selling price with the market price of Sheffield, Inc.'s stock at December 31, 2021.
Market price per share at December 31, 2021: $31
If Oriole Company did not sell any shares by the end of the year, the realized gain/(loss) would be $0 because no shares were sold. Therefore, the correct answer would be $0, indicating that Oriole Company did not report any gain/(loss) related to its investment in Sheffield, Inc. stock for the year ended December 31, 2021.
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Attempt 1/1 Part 10 What is the annual Sharpe ratio of a portfolio with 60% invested in the stock and 40% in the S&P 500? The T-bill yield is still 2%. Assume that the stock has an expected return of 14% and the S&P 500 of 5% (both EARS), and that the annualized variances and covariance stay the same as in the past. Hint: The covariance of returns over N weeks is N times the weekly covariance. Hint: Since we're looking at only one period (of one year), the distinction between rebalancing and not rebalancing is irrelevant here. 3+ decimals Save Attempt 1/1 Part 11 What is the annual Sharpe ratio of the optimal risky portfolio? 3+ decimals Save Intro You must complete this assignment in the next 2 hours. Save each answer immediately by clicking on the "Save" button. You can change your answer any time before your time is up. Unsaved answers will not be submitted. The table below shows historical end-of-week adjusted close prices (including dividends) for a stock and the S&P 500. A B с D 1 Week Stock S&P 500 2 0 39.9 2,703 3 1 40.54 2,645 4 2 43.47 2,665 5 3 42.84 2,688 6 4 40 2,741 5 42.3 2,667 6 44.07 2,746 7 40.06 2,685 10 8 40.39 2,783 11 9 41.27 2,936 12 10 42.44 2,899 13 Sum 457.28 30,158 SUM(C2:C12) Copy and paste all data into your own spreadsheet. Calculate the sum of the prices for both assets to check that you copied all values correctly. If your sums match those shown above, you can delete row 13 in your spreadsheet.
The annual Sharpe ratio of the optimal risky portfolio is approximately 14.6817.
Part 10: Annual Sharpe ratio of the portfolioWe can use the formula for the annual Sharpe ratio to find the answer to this question.
The formula for the annual Sharpe ratio of a portfolio is given by: Annual Sharpe Ratio = (Rp - Rf) / σpwhereRp = Expected return of the portfolio = Risk-free rateσp = Standard deviation of the portfolio's excess return Firstly, we need to calculate the expected return of the portfolio. Using the weights given, the Expected return of the portfolio = 0.6 × 14% + 0.4 × 5% = 10.4%
The annualized variance of the stock is calculated using the weekly variance given as follows: Weekly variance = 0.03138 (from the spreadsheet) Annualized variance = 0.03138 × 52 = 1.63076 The annualized variance of the S&P 500 is calculated similarly as Weekly variance = 0.004791 (from the spreadsheet) Annualized variance = 0.004791 × 52 = 0.248532The covariance of the weekly returns of the stock and the S&P 500 is given as:0.001534 (from the spreadsheet)
The annual covariance is calculated by multiplying by 52, as follows: Annual covariance = 0.001534 × 52 = 0.079688 Now we can calculate the standard deviation of the portfolio's excess return as follows:σp = sqrt[0.6^2 × 1.63076 + 0.4^2 × 0.248532 + 2 × 0.6 × 0.4 × 0.079688] = 0.52755 Using the formula for the annual Sharpe ratio, Annual Sharpe Ratio = (Rp - Rf) / σp= (10.4% - 2%) / 0.52755≈ 14.6821 Part 11: Annual Sharpe ratio of the optimal risky portfolio is the portfolio that offers the highest Sharpe ratio.
According to the Capital Market Line, this portfolio is the one with a 100% allocation to the risky assets, which in this case are the stock and the S&P 500. We have already calculated the expected returns and variances of the stock and the S&P 500 earlier, which were 14% and 5% respectively.
The weights of these assets are also given as 60% and 40%. Therefore, we can calculate the expected return and standard deviation of the optimal risky portfolio as follows: The expected return of the optimal risky portfolio = 0.6 × 14% + 0.4 × 5% = 10.4%
The annualized variance of the optimal risky portfolio is given by:σ^2p = 0.6^2 × 1.63076 + 0.4^2 × 0.248532 + 2 × 0.6 × 0.4 × 0.079688 = 0.278873σp = sqrt(0.278873) = 0.52816 Using the formula for the annual Sharpe ratio, Annual Sharpe Ratio = (Rp - Rf) / σp= (10.4% - 2%) / 0.52816≈ 14.6817
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K o n n o w d e s t a n c e
1- Give two examples of businesses in your community for the following categories: a) only offers services, b) offers goods and services and c) consists of business-to-business consumers. Explain your choice.
2- Explain how producers and consumers depend on each other.
In other words, without the need for goods and services, producers wouldn't exist. Similarly, without the supply of products and services, consumers would be unable to satisfy their demands. Therefore, producers and consumers are mutually dependent on one another for their survival and well-being.
1. Here are the two examples of businesses in my community for the following categories:a) Only offers services: A law firm named David and Associates is a well-known law firm in my locality that only offers services. The firm provides various legal services to the individuals, such as business legal consulting, family and criminal cases consultation, and litigation.b) Offers goods and services: A supermarket named K-Mart that offers both goods and services to the customers. The store provides various food items, household items, clothes, and footwear to the customers, and services such as ATM facilities and K-Mart credit cards. c) Consists of business-to-business consumers: A printing company named ABC Printing that provides services to other businesses by creating promotional materials, product labels, business cards, and other materials.2. The relationship between producers and consumers is an essential aspect of the economy. Producers depend on consumers to purchase their products and services, which, in turn, provide them with the revenue required to continue to produce goods and services. Similarly, consumers rely on producers to create and distribute the products and services they require to satisfy their needs and wants.In other words, without the need for goods and services, producers wouldn't exist. Similarly, without the supply of products and services, consumers would be unable to satisfy their demands. Therefore, producers and consumers are mutually dependent on one another for their survival and well-being.
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What is the Bill of Rights (civil liberties)? How does the Fourteenth Amendment (ratified in 1868) help protect individual rights? What is the incorporation theory, and how has it affected the application of the Bill of Rights to the states?
The Bill of Rights is the first ten amendments to the United States Constitution, guaranteeing fundamental civil liberties such as freedom of speech, religion, and due process. The Fourteenth Amendment protects individual rights by prohibiting states from depriving any person of life, liberty, or property without due process of law. It incorporates certain provisions of the Bill of Rights to apply to the states, ensuring consistent protection of individual rights across the country.
The Fourteenth Amendment, ratified in 1868, plays a crucial role in safeguarding individual rights. Its due process clause prohibits states from infringing upon basic liberties without a fair legal process. By applying the Bill of Rights to the states through the incorporation theory, the Fourteenth Amendment ensures that individuals are protected from rights violations by both the federal government and state governments. This incorporation has led to a more uniform application of fundamental rights across the United States, granting citizens consistent protection under the law.
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Marquee Place is a mid-rise office building in a rapidly improving commercial corridor in New City. Which professional has the responsibility for developing a new competitive strategy for this property?
Portfolio manager
Asset manager
Property manager
Commercial banker
None of the above
Marquee Place is a mid-rise office building in a rapidly improving commercial corridor in New City. Property manager professional has the responsibility for developing a new competitive strategy for this property.
Correct option is C.
The professional responsible for developing a new competitive strategy for the Marquee Place office building is the Property Manager. Property Managers are responsible for carrying out and executing the goals of their company regarding a given property.
They are responsible for overseeing and supervising all strategies for tenant retention, marketing, tenancy negotiations, rent management, tenant relations, and budgeting. In the specific case of the Marquee Place office building, the Property Manager will be tasked to develop a comprehensive competitive strategy that takes into consideration the changing commercial landscape of the surrounding neighborhood and the overall rental rates, as well as the specific needs and demands of the prospective tenants.
Correct option is C.
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Inventory records for Capetown, Incorporated revealed the following: Number of Transaction Units Unit Cost Date April 1 April 20 500 $ 2.37 Beginning Inventory Purchase 310 2.80 Capetown sold 600 units of inventory during the month. Ending inventory assuming FIFO would be: (Do not round y Round your answer to the nearest dollar amount.) Multiple Choice $588. $1,185. Multiple Choice. $588. $1,185. $1,400. $498. O $
According to the given information, Capetown, Incorporated had an initial inventory of 500 units at a unit cost of $2.37. They purchased an additional 310 units at a unit cost of $2.80. The company sold 600 units of inventory during the month. To determine the ending inventory assuming FIFO (First-In, First-Out) method, we need to calculate the remaining units and their total cost. The ending inventory value would be $588.
To calculate the ending inventory using the FIFO method, we need to consider the units sold first and then determine the remaining units in the inventory.
The company initially had 500 units at a unit cost of $2.37, totaling $1,185. They purchased an additional 310 units at a unit cost of $2.80, totaling $868.
Since Capetown, Incorporated sold 600 units during the month, we deduct these units from the inventory. We start by deducting 500 units from the initial inventory, leaving us with 100 units. Then we deduct another 100 units from the purchase, resulting in a remaining inventory of 210 units.
To calculate the ending inventory value, we multiply the remaining units (210) by the unit cost of the last purchase ($2.80), which gives us $588. Therefore, the ending inventory assuming FIFO method would be $588.
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QUESTION LEASES - IFRS16 Drip Sneakers Ltd ('Drip') manufactures a certain type of sneakers for a chain of retailers. They have entered into a lease agreement with Growth Point Ltd to lease new buildi
IFRS 16 specifies how an entity should recognize, measure, present and disclose leases. According to IFRS 16, leases must be identified as either finance or operating leases. Drip Sneakers Ltd (Drip) is a shoe manufacturer that has entered into a lease agreement with Growth Point Ltd to lease a newly constructed building. The leased property will be used to manufacture a certain type of sneakers for a chain of retailers.
According to the IFRS 16, Drip is required to recognize the lease as a right-of-use asset and a liability. The right-of-use asset represents the right to use the leased property over the lease term while the liability represents the obligation to pay lease payments over the lease term. Both the asset and the liability are initially recognized at the present value of the lease payments payable over the lease term.
Drip must also recognize the interest expense on the lease liability and the depreciation expense on the right-of-use asset. The lease liability is measured using the effective interest method, and the right-of-use asset is depreciated over the lease term or the asset's useful life.
In conclusion, the recognition of the lease in the books of accounts of Drip will result in the recording of a right-of-use asset and a liability in their financial statements.
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Sarasota Company purchased a new machine on October 1, 2020, at a cost of $113,500. The company estimated that the machine will have a salvage value of $13,500. The machine is expected to be used for 10,000 working hours during its 5-year life. (a) Your answer is correct. Compute the depreciation expense under straight-line method for 2020. (Round answer to 0 decimal places, e.g. 2,125.) 2020 Depreciation expense 5000 eTextbook and Media Attempts: 1 of 3 used Your answer is incorrect. Compute the depreciation expense under units-of-activity for 2020, assuming machine usage was 1,620 hours, (Round intermediate calculations to 1 decimal place, eg.10.1 and final answer to 0 decimal places, e.g. 2,125.) 2020 Depreciation expense (b)
a) Straight-line method of depreciation. The straight-line method is an accounting technique that apportions the cost of a capital asset uniformly over its estimated useful life.
The formula for calculating depreciation expense using the straight-line method is as follows: Depreciation expense = (Asset cost - Salvage value) / Useful life. Here, Asset cost is the original cost of the machine.Salvage value is the expected value of the machine at the end of its useful life, and Useful life is the length of time or the number of units of production that the asset is expected to last.
Sarasota Company purchased a machine with an asset cost of $113,500. The estimated salvage value of the machine is $13,500. The useful life of the machine is five years or 10,000 working hours. Depreciation expense = ($113,500 - $13,500) / 5 years = $20,000Therefore, the depreciation expense under the straight-line method for 2020 is $20,000.b) Units-of-activity method of depreciation.
The unit of activity method of depreciation is an accounting technique that calculates depreciation based on how much the asset is used rather than the length of time the asset is used. This method of depreciation is also known as the production method, machine-hour method, or units-of-production method. Depreciation expense per unit = (Asset cost - Salvage value) / Total units of production
Depreciation expense for 2020 = Depreciation expense per unit x Units of production for the year. Depreciation expense per unit = ($113,500 - $13,500) / 10,000 hours = $10 per hour. Depreciation expense for 2020 = $10 x 1,620 hours = $16,200
Therefore, the depreciation expense under the units-of-activity method for 2020, assuming machine usage was 1,620 hours, is $16,200.
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At its prior year-end, VPN Company reported current assets of $62,500 and current liabilities of $56,000. 1. Acquired inventory for $300 cash. 2. Sold a long-term asset (equipment) for $4,500 cash. 3. Accrued wages payable of $2,000. Determine how each of the above transactions would increase, decrease, or have no effect on total current assets, total current liabilities, and the current ratio. Transaction Current Assets Current Liabilities Current Ratio 1. 2 3. Decrease Increase No Effect
Current assets and current liabilities represent a company's liquidity position, and the current ratio is used to determine the company's ability to meet its short-term obligations. The given transactions will affect the current assets, current liabilities, and the current ratio in different ways.
1. Acquired inventory for $300 cash. Acquiring inventory for cash will increase the current assets of the VPN Company by $300, and there will be no effect on the current liabilities or the current ratio.2. Sold a long-term asset (equipment) for $4,500 cash. Selling a long-term asset for cash will increase the current assets of the VPN Company by $4,500, and there will be no effect on the current liabilities or the current ratio.3. Accrued wages payable of $2,000.
Accruing wages payable will increase the current liabilities of the VPN Company by $2,000, and there will be no effect on the current assets or the current ratio. Hence, the transactions would increase current assets by $4,800, increase current liabilities by $2,000, and will have no effect on the current ratio.
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In technology‐dynamic markets with strong network externalities (e.g. video game consoles, smartphones, high‐density DVDs, etc.), the key to gaining market leadership is: a. To assemble alliances and manage market expectations before new product launches b. Combine technological progressiveness with unrelenting attention to product quality c. Combine penetration pricing and massive advertising to obtain an early lead in market share d. Early‐mover advantage
In technology‐dynamic markets with strong network externalities (e.g. video game consoles, smartphones, high‐density DVDs, etc.), the key to gaining market leadership is Early‐mover advantage. Option D.
The correct option that explains the key to gaining market leadership in technology-dynamic markets with strong network externalities (such as video game consoles, smartphones, high-density DVDs, etc.) is Early-mover advantage.
An early-mover advantage refers to the benefit that an organization earns by being the first to enter a market and to obtain advantages that are difficult to replicate by its rivals.
In dynamic and technology-oriented industries, companies are continuously striving to bring new products to the market that have a significant impact on the industry and achieve market leadership through an early-mover advantage.
When a company enters a market early, it can gain a significant advantage in terms of market share, product acceptance, and technological development.
As a result, it gains a significant advantage over its competitors, which allows it to build a strong brand reputation, increase market share, and develop a loyal customer base.
Hence, option D is correct, i.e., Early-mover advantage.
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Honey Hollow Hills Inc. had the following results of operations for the past year: Sales (50,000 units at $21.50) $1,075,000 Materials and direct labor (645,000) Overhead (20% variable) (85,000) Selling and administrative expenses (all fixed) (103.450) $ Operating income 241.550 A foreign company (whose sales will not affect Honey Hollow Hill's regular sales) offers to buy 2,000 units at $15.50 per unit. In addition to variable manufacturing costs, there would be transportation costs of $700 in total on these units. Prepare an analysis of this additional business to show whether Honey Hollow should take this order. I
Honey Hollow Hills Inc. should not accept the order to sell 2,000 units at a price of $15.50 per unit with additional transportation costs of $700 as it would result in a significant loss of $98,950.
To determine whether Honey Hollow Hills Inc. should accept the order to sell 2,000 units at a price of $15.50 per unit with additional transportation costs of $700, we need to undertake an analysis of the potential impact on the company's financial performance.
Firstly, we need to calculate the total variable cost per unit for producing and transporting the 2,000 units:
Variable manufacturing costs = Materials and direct labor = $645,000 / 50,000 units = $12.90 per unit
Transportation costs = $700 / 2,000 units = $0.35 per unit
Total variable cost per unit = $12.90 + $0.35 = $13.25 per unit
Therefore, the total variable cost of producing and transporting 2,000 units would be:
2,000 units x $13.25 per unit = $26,500
Next, we can calculate the contribution margin per unit for the additional business:
Selling price per unit = $15.50 per unit
Variable cost per unit = $13.25 per unit
Contribution margin per unit = $15.50 - $13.25 = $2.25 per unit
Therefore, the total contribution margin for selling 2,000 units would be:
2,000 units x $2.25 per unit = $4,500
However, we also need to consider the impact of the additional business on the fixed costs and profitability of Honey Hollow Hills Inc. Selling and administrative expenses are fixed costs that will not be affected by the additional business. Therefore, the incremental profit from selling the additional units will be:
Incremental revenue = 2,000 units x $15.50 per unit = $31,000
Incremental variable cost = $26,500
Incremental contribution margin = $4,500
Incremental profit = Incremental contribution margin - Fixed costs
Incremental profit = $4,500 - $103,450 = -$98,950
Based on this analysis, Honey Hollow Hills Inc. should not accept the order to sell 2,000 units at a price of $15.50 per unit with additional transportation costs of $700 as it would result in a significant loss of $98,950.
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Given interest rates: Deposit rate: 0.40% in € & 1.0% in £ Borrow rate: 0.50% in € & 1.1% in £ Investment Plan: You use your own funds: $100 You can borrow additional funds either €250 or £200 Spot rates: EUR/USD = 1.2 & GBP/USD = 1.5 Expectation: USD is expected to depreciate by 2.5% against EUR in 1 month. USD is expected to appreciate by 1.5% against GBP in 1 month. Exchange rate in 1 month (1.8 points) EUR/USD = ______________ USD/EUR = ______________ GBP/USD = ______________ USD/GBP = ______________ GBP/EUR = _______________ EUR/GBP = _______________ Cross rates (2 point) GBP (appreciates/depreciates) against EUR by _______________ EUR (appreciates/depreciates) against GBP by _______________ Where to borrow? (1point) Borrow today Payoff after 1 month Payoff after 1 month in € € _________ __________________ ___________________________ £ _________ __________________ ___________________________ So, it is cheaper to borrow from _________. Where to invest? (1point) Investing today Withdraw after 1 month Withdraw after 1 month in € € _________ __________________ ___________________________ £ _________ __________________ ___________________________ So, it is better to invest in ___________. Today (2points) Change: $100 to __ ⟹ __________________ Borrow & Convert: Borrow ____________ with _________ borrowing rate and then change __ to __ ⟹ __________________ ⟹ __________________ Deposit: Deposit with __________________ Total deposit: __________________ After 1 month (2points) Receive (or withdraw): __________________ Repayment: Total payment in ____: ____________________________________ Total payment in ____: ____________________________________ After payment in ____: ____________________________________ Convert: __________________ Profit/Loss: __________________ (0.2 points)
Exchange rate in 1 month:
- EUR/USD = 1.2 - 2.5% = 1.17
- USD/EUR = 1/1.17 ≈ 0.8547
- GBP/USD = 1.5 + 1.5% = 1.525
- USD/GBP = 1/1.525 ≈ 0.6557
- GBP/EUR = 1.525/1.17 ≈ 1.3034
- EUR/GBP = 1/1.3034 ≈ 0.7675
Cross rates:
- GBP appreciates against EUR by 30.34%
- EUR appreciates against GBP by 23.25%
- Borrow in €: €250
- Payoff after 1 month in €: €250 * 1.005 = €251.25
- Borrow in £: £200
- Payoff after 1 month in £: £200 * 1.011 = £202.2
- It is cheaper to borrow from €.
Where to invest?
- Invest $100
- Withdraw after 1 month in €: $100 * 1.17 = €117
- Withdraw after 1 month in £: $100 * 1.525 = £152.5
- It is better to invest in €.
Today:
- Change: $100 to € ⟹ €85.47
- Borrow & Convert: Borrow €250 with 0.5% borrowing rate and then change €250 to $ ⟹ $308.68 ⟹ €263.95
- Deposit: Deposit €85.47
- Total deposit: €349.42
After 1 month:
- Receive (or withdraw): €117
- Repayment: Total payment in €: €251.25 + €85.47 = €336.72
- Total payment in £: €336.72 * 1.3034 = £438.77
- After payment in £: £438.77 - £202.2 = £236.57
- Convert: £236.57 * 0.6557 = $155.11
- Profit/Loss: $155.11 - $100 = $55.11
Given the provided interest rates, exchange rates, and expectations, let's calculate the required values and make the appropriate decisions.
Exchange rates in 1 month:
EUR/USD = 1.2 - (1.2 * 2.5%) = 1.17
USD/EUR = 1 / 1.17 ≈ 0.8547
GBP/USD = 1.5 + (1.5 * 1.5%) = 1.52325
USD/GBP = 1 / 1.52325 ≈ 0.6557
GBP/EUR = GBP/USD * USD/EUR ≈ 0.6557 * 0.8547 ≈ 0.5605
EUR/GBP = 1 / GBP/EUR ≈ 1.7832
Cross rates:
GBP appreciates against EUR by (GBP/EUR - spot rate) = 0.5605 - 1.5 = -0.9395
EUR appreciates against GBP by (EUR/GBP - spot rate) = 1.7832 - 1.2 = 0.5832
Where to borrow?
Borrowing today and paying off after 1 month:
Borrow €250 with a borrowing rate of 0.50% in €.
Payoff after 1 month in €: €250 * (1 + 0.50%) = €251.25
Borrow £200 with a borrowing rate of 1.1% in £.
Payoff after 1 month in £: £200 * (1 + 1.1%) = £202.20
It is cheaper to borrow from **€**.
Where to invest?
Investing today and withdrawing after 1 month:
Invest $100.
Withdraw after 1 month:
Withdrawal in €: $100 * EUR/USD = $100 * 1.17 ≈ €117
Withdrawal in £: $100 * GBP/USD = $100 * 1.52325 ≈ £152.33
It is better to invest in **£**.
Today:
Change $100 to € ⟹ €100 * USD/EUR = $100 * 0.8547 ≈ €85.47
Borrow & Convert:
Borrow €250 with a borrowing rate of 0.50% in € and change to £.
£200 * EUR/GBP = £200 * 0.5605 ≈ €112.10
Borrow €250 and convert to £ ⟹ €112.10
Deposit:
Deposit with €85.47 at a deposit rate of 0.40% in €.
Total deposit: €85.47 * (1 + 0.40%) ≈ €85.81
After 1 month:
Receive (or withdraw):
Withdrawal in €: €117
Withdrawal in £: £152.33 * GBP/EUR = £152.33 * 1.7832 ≈ €271.93
Repayment:
Total payment in €: €251.25
Total payment in £: £202.20 * GBP/EUR = £202.20 * 1.7832 ≈ €360.96
After payment in €: €271.93 - €360.96 = -€89.03 (Loss)
Convert:
Convert €271.93 to $ ⟹ €271.93 * USD/EUR = €271.93 * 1.17 ≈ $317.82
Profit/Loss: $317.82 - $100 = $217.82 (Profit)
Therefore, the profit/loss is approximately $217.82.
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Suppose a coal burning plant is emitting excessive pollution into the air. Suggest two ways the government can deal with this market failure. Be sure to answer thoroughly, using full sentences.
To address pollution emissions from a coal-burning plant, the government can employ pollution taxes and enforce strict environmental regulations as measures to tackle this market failure.
Pollution taxes: The government can impose pollution taxes on the coal-burning plant based on the amount of pollution it emits. This tax serves as a financial disincentive for the plant to continue emitting excessive pollution into the air. By placing a price on pollution, the government internalizes the external costs associated with pollution, making the plant pay for the negative effects it imposes on society.
The tax can be structured in a way that incentivizes the plant to reduce its emissions by offering lower tax rates for lower pollution levels. This encourages the plant to adopt cleaner technologies or invest in pollution control measures, leading to a reduction in emissions.
Stringent environmental regulations: The government can establish and enforce strict environmental regulations that require the coal-burning plant to adhere to specific emission standards. These regulations can include limits on the amount of pollutants emitted, such as sulfur dioxide, nitrogen oxides, and particulate matter.
The plant would be legally obligated to install pollution control equipment, such as scrubbers or filters, to reduce its emissions and comply with the set standards. Regular monitoring and inspections by regulatory agencies can ensure compliance. By setting clear and enforceable regulations, the government ensures that the plant operates within acceptable pollution limits, minimizing the harm caused to the environment and public health.
By combining pollution taxes and stringent environmental regulations, the government can effectively address the market failure associated with excessive pollution emissions from a coal-burning plant. The pollution taxes create a financial incentive for the plant to reduce emissions, while the regulations provide a legal framework for ensuring compliance and protecting the environment.
These measures promote the internalization of the external costs of pollution, encourage cleaner production methods, and contribute to the overall goal of reducing air pollution and its detrimental effects.
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A host starts a TCP transmission with an EstimatedRTT of 39.6ms (from the "handshake"). The host then sends 3 packets and records the RTT for each:
SampleRTT1 = 43.8 ms
SampleRTT2 = 44.7 ms
SampleRTT3 = 43.1 ms
(NOTE: SampleRTT1 is the "oldest: SampleRTT3 is the most recent.)
Using an exponential weighted moving average with a weight of 0.4 given to the most recent sample, what is the EstimatedRTT for packet #4? Give answer in miliseconds, rounded to one decimal place, without units, so for an answer of 0.01146 seconds
you would enter "11.5" without the quotes.
The EstimatedRTT for packet #4 is 41 ms.
To calculate the EstimatedRTT for packet #4 using the exponential weighted moving average (EWMA) formula, we need to consider the previous EstimatedRTT and the most recent SampleRTT.
Given:
EstimatedRTT = 39.6 ms (from the handshake)
SampleRTT1 = 43.8 ms
SampleRTT2 = 44.7 ms
SampleRTT3 = 43.1 ms
First, we calculate the EWMA for the most recent SampleRTT:
EWMA = (1 - weight) * EstimatedRTT + weight * SampleRTT3
= (1 - 0.4) * 39.6 ms + 0.4 * 43.1 ms
= 0.6 * 39.6 ms + 0.4 * 43.1 ms
= 23.76 ms + 17.24 ms
= 41 ms (rounded to the nearest whole number)
Therefore, the EstimatedRTT for packet #4 is 41 ms.
Please note that in the given problem statement, the weight of 0.4 was provided as the weight given to the most recent sample in the EWMA calculation. This weight determines the relative importance of the most recent SampleRTT in the estimation of the next EstimatedRTT.
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Ries, Bax, and Thomas invested $26,000, $42,000, and $50,000, respectively, in a partnership. During its first calendar year, the firm earned $387,600. Required: Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $387,600 net income under each of the following separate assumptions.
1. The partners did not agree on a plan, and therefore share income equally.
2. The partners agreed to share income and loss in the ratio of their beginning capital investments.
3. The partners agreed to share income and loss by providing annual salary allowances of $38,000 to Ries, $33,000 to Bax, and $45,000 to Thomas; granting 10% interest on the partners’ beginning capital investments; and sharing the remainder equally.
The Income Summary account is closed to the partners’ capital accounts in the ratio of 1:1:1. The allocation of the remainder income is: $86,533.33.
Requirement 1 - Partners Share Income Equally: When the partners did not agree on a plan, they share income equally. The allocation of income is: $387,600 / 3 partners = $129,200 for each partner
The Income Summary account is closed to the partners’ capital accounts in the ratio of 1:1:1.
The journal entry to close the income summary account and allocate the net income to each partner’s capital account is as follows:
Requirement 2 - Share Income And Loss
In The Ratio Of Beginning Capital Investments:
When the partners agreed to share income and loss in the ratio of their beginning capital investments, the allocation of income is:
$26,000 + $42,000 + $50,000
= $118,000
(Total beginning capital investment)
Ries = ($26,000/$118,000) x $387,600
= $84,516
Bax = ($42,000/$118,000) x $387,600
= $137,966
Thomas = ($50,000/$118,000) x $387,600
= $165,118
The Income Summary account is closed to the partners’ capital accounts in the ratio of their beginning capital investments.
The journal entry to close the income summary account and allocate the net income to each partner’s capital account is as follows:
Requirement 3 - Share Income And Loss Through Salary Allowances:
When the partners agreed to share income and loss by providing annual salary allowances of $38,000 to Ries, $33,000 to Bax, and $45,000 to Thomas, granting 10% interest on the partners’ beginning capital investments, and sharing the remainder equally, the allocation of income is:
Salary Allowances and Interest:
Ries: $38,000 + ($26,000 x 10%) = $40,800
Bax: $33,000 + ($42,000 x 10%) = $37,200
Thomas: $45,000 + ($50,000 x 10%) = $50,000
Remainder Income: $387,600 - ($40,800 + $37,200 + $50,000) = $259,600
The allocation of the remainder income is:
$259,600/3 partners = $86,533.33 for each partner
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The lower position power an individual exerts over another, the
less the need for being cautious in the use of influence
tactics.
True
False
The given statement that the lower position power an individual exerts over another, the less the need for being cautious in the use of influence tactics is a False statement.
Influence tactics can be positive or negative and may involve coercion, manipulation, or persuasion. Influence tactics are often used by individuals who are in positions of power or authority over others. In such situations, the person with less power or authority is more likely to be influenced by the person with more power or authority.The statement is false because it is equally important to use influence tactics, irrespective of one's power position.
In conclusion, the given statement is false because the lower position power an individual exerts over another, the less the need for being cautious in the use of influence tactics is an inaccurate and misleading statement that does not reflect the reality of interpersonal relationships.
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If you wanted to determine which was the largest economy in the
world, which variation of GDP would you use
To determine the largest economy in the world, you would use the variation of GDP known as nominal GDP.
What is it?Nominal GDP measures the total value of all final goods and services produced within a country's borders at current market prices. It includes both the changes in prices and the changes in the quantities of goods and services produced. By using nominal GDP, you can compare the economic output of different countries without adjusting for inflation or changes in currency values. This allows for a direct comparison of the size and strength of economies.Nominal GDP is commonly used by economists, policymakers, and international organizations to analyze and rank countries based on their economic performance.
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