As a stakeholder, bringing awareness regarding the importance of understanding financial risk can be achieved through organizing awareness programs, use of social media platforms, providing training, use of case studies, creating a financial risk management plan.
As a stakeholder, it is essential to understand financial risk, and therefore bringing awareness to the audience regarding its importance can be achieved through the following ways:
1. Organize Awareness Programs: Organizing awareness programs is an excellent way of educating stakeholders about financial risks. These programs should be targeted at the specific stakeholders, with a focus on their role in the organization. For example, a program aimed at educating investors will be different from the one aimed at educating employees. The content should be designed to be easy to understand, and real-life examples should be used to explain the concepts.
2. Use Social Media Platforms: Social media platforms are an excellent way of reaching out to a broader audience. Organizations can use social media platforms to disseminate information on financial risk and its importance to stakeholders. Social media platforms are also useful in targeting specific groups of people, which can help in creating awareness more effectively.
3. Provide Training: Another effective way of creating awareness about financial risks is through training. Training should be targeted at stakeholders who are directly involved in financial decision-making. The training should cover the key concepts related to financial risks and how they can be mitigated.
4. Use Case Studies: Using case studies is another way of creating awareness about financial risks. Organizations can use case studies to demonstrate the importance of understanding financial risks and how they can affect the organization. Case studies should be selected carefully to ensure they are relevant to the stakeholders.
5. Create a Financial Risk Management Plan: Finally, organizations should create a financial risk management plan that outlines the key financial risks faced by the organization and how they can be mitigated. The plan should be shared with stakeholders to create awareness about financial risks and the importance of managing them effectively.
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Sunnyside Solar Consultants provided $184,000 of consulting services to Delton Developments on April 14, 2017, on account. Use the PST rates in Exhibit 10.6.
PST means The Provincial Sales Tax (PST)
Required:
Journalize Sunnyside’s April 14 transaction including applicable PST and GST or HST assuming it is located in:
a. Nova Scotia.
b. British Columbia.
c. Prince Edward Island.
d. Alberta
PST Rate GST Rate HST Rate* Regions with GST Only Alberta Northwest Territories Nunavut Yukon 5% 5% 5% 5% Regions with GST and PST British Columbia Manitoba Quebec Saskatchewan 7% 8% q.q75% 5% 5% 5% 5% 5% Regions with HST New Brunswick Newfoundland and Labrador** Nova Scotia Ontario Prince Edward Island 13% 15% 15% 13% 14% A Harmonized Sales Tax (HST) is applied in place of PST and GST. HST is the combination of the PST with the GST for a total sales tax. For example, for both New Brunswick and Ontario the ST rate of 8% is combined with the GST of 5%, resulting in an overall HST of 13% *The Newfoundland 2015 budget announced that the rate increases from 13% to 15%, effective January 1, 2016
1
Record the consulting fees earned assuming that Delton Developments is located in Nova Scotia.
2
Record the consulting fees earned assuming that Delton Developments is located in British Columbia.
3
Record the consulting fees earned assuming that Delton Developments is located in Prince Edward Island.
4
Record the consulting fees earned assuming that Delton Developments is located in Alberta.
You have been asked by the president of Micro Brewing Corporation to project changes in consumer beer purchases related to a proposed price modification at a Las Vegas Raiders football game.
After conducting research, you discover that if the cost of a six-pack of beer increases from $3.50 to $4.50, demand will fall from 2,500 to 1,800 units per month. Should the brewery charge more when the Las Vegas Raiders play? Did the beer company's owner make the right choice by boosting the price of the beverage? Give the president an explanation of the economic justification for this suggestion. You must do the following in order to respond to this inquiry: a. Determine the elasticity of beer demand. Is there a beer market?
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.Brett Stern was hired during January 2020 to manage the home products division of Hi-Tech Products. As part of his employment contract, he was told that he would get $5,000 of additional bonus for every 1% increase that the division's profits exceeded those of the previous year.
Soon after coming on board, Brett met with his plant managers and explained that he wanted the plants to be run at full capacity. Previously, the plant had employed just-in-time inventory practices and had consequently produced units only as they were needed. Brett stated that under previous management the company had missed out on too many sales opportunities because it didn't have enough inventory on hand. Because previous management had employed just-in-time inventory practices, when Brett came on board there was virtually no beginning inventory. The selling price and variable costs per unit remained the same from 2019 to 2020. Additional information is provided below.
2019 2020
Net income $ 300,000 $ 525,000
Units produced 25,000 30,000
Units sold 25,000 25,000
Fixed manufacturing overhead costs $1,350,000 $1,350,000
Fixed manufacturing overhead costs per unit $ 54 $ 45
Instructions
a. Calculate Brett's bonus based upon the net income shown above.
b. Recompute the 2019 and 2020 results using variable costing.
c. Recompute Brett's 2020 bonus under variable costing.
d. Were Brett's actions unethical? Do you think any actions need to be taken by the company?
a) Brett's bonus based on the net income shown above can be calculated as follows: Net increase in profit = $525,000 - $300,000 = $225,000 Percentage increase in profit = ($225,000/$300,000) × 100% = 75% Additional bonus = 75 × $5,000 = $375,000. Therefore, Brett's bonus based upon the net income shown above is $375,000.
b) Computation of 2019 and 2020 results using variable costing is shown below:2019 2020Sales (25,000 × $150) $ 3,750,000 $ 3,750,000 Less variable expenses: Variable cost of goods sold (25,000 × $90) $ 2,250,000 $ 2,700,000 Variable selling and administrative (25,000 × $3) $ 75,000 $ 75,000 Total variable expenses $ 2,325,000 $ 2,775,000Contribution margin $ 1,425,000 $ 975,000 Less fixed expenses: Fixed manufacturing overhead costs $1,350,000 $1,350,000 Fixed selling and administrative expenses $ 390,000 $ 390,000 Total fixed expenses $1,740,000 $1,740,000 Net income $ (315,000) $ (765,000)
c) Recomputation of Brett's 2020 bonus under variable costing: Net increase in profit = ($765,000) - ($315,000) = $450,000 Percentage increase in profit = ($450,000)/($315,000) × 100% = 142.86% Additional bonus = 142.86 × $5,000 = $714,300. Therefore, Brett's bonus under variable costing is $714,300.
d) Brett's actions were unethical because he changed the costing method from absorption costing to variable costing without disclosing it to the shareholders. Also, Brett's action resulted in lower net income, which he used as a basis for calculating his bonus.
The company may need to investigate Brett's actions and determine if any actions are required to be taken.
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Which of the following taxpayers is required to file a 2022 federal income tax return?
Kay (58), head of household, gross income $17,900.
Gwen (72) and Donnie (68), married filing jointly, gross income $26,950.
Ash (72) and Amy (63), married filing jointly, gross income $25,750.
Selma (72), married filing separately, gross income $11,200.
Based on the information provided, the taxpayers who are required to file a 2022 federal income tax return are Gwen (72) and Donnie (68), married filing jointly, with a gross income of $26,950.
The IRS sets income thresholds that determine whether individuals are required to file a federal income tax return. These thresholds vary based on filing status, age, and gross income. Let's analyze the situations of each taxpayer:
Kay (58), head of household, with a gross income of $17,900: According to the 2022 IRS guidelines, the filing requirement for a head of household under the age of 65 is $18,950. Since Kay's gross income is below this threshold, she is not required to file a federal income tax return.
Gwen (72) and Donnie (68), married filing jointly, with a gross income of $26,950: For married individuals filing jointly and both spouses are 65 or older, the filing requirement in 2022 is $28,600. Since their gross income is below this threshold, they are required to file a federal income tax return.
Ash (72) and Amy (63), married filing jointly, with a gross income of $25,750: Similar to Gwen and Donnie, they fall below the filing requirement threshold and are not required to file a federal income tax return.
Selma (72), married filing separately, with a gross income of $11,200: The filing requirement for married individuals filing separately in 2022 is $5. Selma's gross income exceeds this threshold, so she is required to file a federal income tax return.
In summary, only Gwen and Donnie, married filing jointly with a gross income of $26,950, are required to file a 2022 federal income tax return.
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Get Evenitis...
a. violates random walk hypothesis
b. can occur after investors make losses
c. none of the answers is correct
d. describes that observation that investors always loose money after loss
b. can occur after investors make losses. Get Evenitis is a behavioral bias that can occur after investors experience losses.
Get Evenitis refers to a behavioral bias or psychological phenomenon where investors tend to take on higher risks or make aggressive investment decisions after experiencing losses. It is characterized by a desire to "get even" by trying to recover the losses quickly, often leading to impulsive or irrational investment behavior.
Option b. is the correct answer because Get Evenitis is specifically associated with investors making losses. It is a psychological response to losses that can drive investors to take on additional risks or engage in speculative activities in an attempt to recoup their losses quickly.
It is important for investors to be aware of this bias and make rational investment decisions based on sound analysis and risk management principles rather than trying to chase after losses.
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Basham Company operates as a sole proprietorship and purchased $444,000 of new machinery on April 5,2022 , to be used in their assembly line. Basham's net income before deducting depreciation is $380,000. If Basham elects Section 179 on the machinery, how much of a depreciation deduction is allowed in 2022? a. $0 b. 588,800 c. $380,000 d. $444,000
Basham Company can take a depreciation deduction of $444,000 for the machinery purchase in 2022. To determine the depreciation deduction allowed in 2022 for Basham Company's machinery purchase, we need to consider the rules and limitations of Section 179.
Under Section 179 of the U.S. Internal Revenue Code, businesses can elect to expense (deduct) the cost of qualifying assets, such as machinery, in the year they are placed in service, rather than depreciating them over several years. However, there is a limitation on the maximum deduction allowed under Section 179. For the tax year 2022, the maximum deduction is $1,050,000, and it begins to phase out once the total cost of qualified assets placed in service exceeds $2,620,000.
Given that Basham Company purchased machinery worth $444,000, which is below both the maximum deduction limit and the phase-out threshold, the full cost of the machinery is eligible for Section 179 depreciation deduction in 2022.
Therefore, the correct option is: d. $444,000. Basham Company can take a depreciation deduction of $444,000 for the machinery purchase in 2022.
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What is the difference between targets and indicators? Select one: a. Targets concern the budgets and affordability of the SDGs, while the indicators concern the achievements enabled by the funding when well-spent. b. Targets help define, in specific and measurable terms, the desired outcomes of a strategy. Targets are then linked to (key performance) indicators that measure how well you are doing towards achieving your desired outcome (i.e. your goal). c. Targets are concerned with organisations and companies, while indicators are restricted to government priorit
Therefore, targets define the desired outcomes, while indicators measure the progress towards those outcomes. They are interconnected and work together to facilitate effective goal setting, implementation, and assessment of performance.
The correct answer is b. Targets help define, in specific and measurable terms, the desired outcomes of a strategy. Targets are then linked to (key performance) indicators that measure how well you are doing towards achieving your desired outcome (i.e. your goal). Targets are specific goals or objectives that an individual, organization, or government aims to achieve. They are often set based on broader strategies or initiatives and provide a clear direction for actions and efforts. Targets are typically defined in specific and measurable terms, allowing for progress monitoring and evaluation. Indicators, on the other hand, are measures or metrics used to assess and track progress towards the targets. Indicators provide quantitative or qualitative data that indicate the extent to which the desired outcomes are being achieved. They serve as performance measures and help in monitoring and evaluating the effectiveness of strategies and interventions. Targets help define, in specific and measurable terms, the desired outcomes of a strategy. Targets are then linked to (key performance) indicators that measure how well you are doing towards achieving your desired outcome (i.e. your goal).
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1 Exercise 7-2 Allowance Method of Accounting for Bad Debts- 7-4 Comparison of the Two Approaches
Kandel Company had the following data available for 2014 (before making any adjustments):
Accounts receivable, 12/31/ $320,100 (Dr.)
Allowance for doubtful accounts 2,600 (Cr.) Net credit sales, 2014 834,000 (Cr.)
Required
1. Prepare the journal entry to recognize bad debts under the following assumptions: (a) bad debts expense is expected to be 2% of net credit sales for the year and (b) Kandel expects it
will not be able to collect 6% of the balance in accounts receivable at year-end. 2. Assume instead that the balance in the allowance account is a $2,600 debit. How will this affect your answers to part (1)?
Cengage Loaning the sight sights in
1. Journal entry to recognize bad debts:
(a) Assuming bad debts expense is expected to be 2% of net credit sales:
Bad Debts Expense $16,680 (2% of $834,000)
Allowance for Doubtful Accounts $16,680
(b) Assuming 6% of the balance in accounts receivable will not be collected:
Bad Debts Expense $19,206 (6% of $320,100)
Allowance for Doubtful Accounts $19,206
2. If the balance in the allowance account is a $2,600 debit:
(a) The bad debts expense under the assumption of 2% of net credit sales would be:
Bad Debts Expense $13,744 ($16,680 - $2,936)
Allowance for Doubtful Accounts $13,744
(b) The bad debts expense under the assumption of 6% of accounts receivable would be:
Bad Debts Expense $16,606 ($19,206 - $2,600)
Allowance for Doubtful Accounts $16,606
In part (1a), recognizing bad debts expense as 2% of net credit sales results in an expense of $16,680 and an equal increase in the allowance for doubtful accounts. In part (1b), assuming 6% of the accounts receivable balance will not be collected leads to a bad debts expense of $19,206 and a corresponding increase in the allowance. In part (2), if the allowance account already has a $2,600 debit balance, it reduces the amount of bad debts expense recognized, resulting in lower expense figures for both assumptions.
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Describe an organizational barrier(s) to a change initiative have encountered and how you or the team responsible for implementing the change approached this. Would there have been a better way, in your opinion?
Organizational barriers are the various structural obstacles that prevent an organization from being effective. These barriers may arise due to a variety of factors, including the absence of sufficient resources, a lack of leadership or a flawed organizational structure.
A change initiative's implementation may be hindered by these barriers. This essay discusses one of the common organizational barriers to a change initiative that was encountered and how the team that was responsible for implementing the change overcame it. One of the most common organizational barriers to change is resistance to change. In this case, a new operational system was introduced in a hospital in order to improve the efficiency of patient record management. However, several physicians were opposed to the idea, claiming that the new system would be cumbersome and take up too much of their time. As a result, the team that was responsible for implementing the change encountered resistance from a significant portion of the physicians.
The team recognized that the implementation of the new system would be difficult if the physicians were not on board, so they decided to approach the issue by conducting several educational sessions. They presented a detailed plan, including the benefits and drawbacks of the new system, to the physicians. They also invited the physicians to provide feedback, which was taken into account when finalizing the plan. By doing so, the physicians were able to see the potential benefits of the new system. They were also provided with the necessary training, support, and resources to ensure that the new system would work well.
As a result, the physicians became more receptive to the idea of the new system. In my opinion, there could have been a better approach to the issue. The team could have involved the physicians in the decision-making process before implementing the change initiative. This approach could have been beneficial as the physicians would have felt that their opinions were heard and valued. This would have increased the likelihood of the physicians being on board with the change. The team could have conducted a pilot project before implementing the new system across the entire hospital. This would have provided an opportunity for the team to test the system and address any issues before rolling it out to the entire hospital.
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A company manufactures birdcages. They are considering modifying their operations by adopting a new machine that will replace some of their direct labour costs and eliminate the need for one of their plant supervisors. The current results, and anticipated results if the changes are adopted are as follows: Current Results Proposed change Selling price per unit $25 $25 Variable Costs per unit: Manufacturing. Selling and admin 10 2 2 Fixed costs: $10,000 Manufacturing Selling and admin 2,000 $14,000 2,000 Assume that sales and production are equal. At what volume is the company indifferent between the current situation and the proposed changes? Show your work
To determine the volume at which the company is indifferent between the current situation and the proposed changes, we can use the following formula:
Code snippet
Indifference Point = (Fixed Cost Difference)/(Unit Contribution Margin Difference)
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In this case, the fixed cost difference is $4,000 (14,000 - 10,000) and the unit contribution margin difference is $2 (25 - 10 - 2). Therefore, the indifference point is 2,000 units.
Code snippet
Indifference Point = (4,000)/(2) = 2,000 units
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This means that if the company sells 2,000 units, it will make the same amount of profit under either the current situation or the proposed changes. If the company sells more than 2,000 units, it will be more profitable to adopt the proposed changes. If the company sells less than 2,000 units, it will be more profitable to keep the current situation.
Here is a table that shows the profit for each situation at different volumes:
Code snippet
Volume | Current Situation Profit | Proposed Change Profit
---|---|---|
0 units | -10,000 | -14,000
1,000 units | -8,000 | -12,000
2,000 units | -6,000 | -10,000
3,000 units | -4,000 | -8,000
4,000 units | -2,000 | -6,000
5,000 units | 0 | -4,000
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David Davis has an investment that will pay him the following cash flows over the next five years: $2,310, $2,620, $3,030, $3,400, and $3,610. If his investments typically earn 9.55 percent, what is the future value of the investment's cash flows at the end of five years? (Do not round factor values. Round answer to 2 deciml places, e.g. 12,225.21.) Future value
The future value of the investment's cash flows at the end of five years is $15,132.17.
To calculate the future value of the investment's cash flows, we can use the formula for calculating the future value of a series of cash flows:
Future Value = Cash Flow1 * (1 + Interest Rate)^n + Cash Flow2 * (1 + Interest Rate)^(n-1) + ... + Cash Flown * (1 + Interest Rate)^1
Where:
- Cash Flow1, Cash Flow2, ..., Cash Flown are the individual cash flows received at different time periods.
- Interest Rate is the rate at which the investments typically earn.
- n is the number of time periods.
In this case, the cash flows received over the next five years are $2,310, $2,620, $3,030, $3,400, and $3,610. The interest rate is given as 9.55 percent, which is equivalent to 0.0955 when expressed as a decimal.
Using the formula mentioned above, we can calculate the future value as follows:
Future Value = $2,310 * (1 + 0.0955)^5 + $2,620 * (1 + 0.0955)^4 + $3,030 * (1 + 0.0955)^3 + $3,400 * (1 + 0.0955)^2 + $3,610 * (1 + 0.0955)^1
Calculating this expression will give us the future value of the investment's cash flows at the end of five years.
After performing the calculations, we find that the future value is approximately $15,132.17.
Therefore, the future value of the investment's cash flows at the end of five years is $15,132.17.
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During the 1980's the US automakers suffered substantial losses to foreign manufacturers. The once dominant "Big Three" — GM, Ford and Chrysler — were losing the competition (or game) to Japanese and European firms. By the early 1990's a major public relations campaign began to encourage US consumers to "Buy American". Supported by industry, labor and many politicians, the "Buy American" movement promoted the purchase of American cars by appealing to patriotism, loyalty, and a responsibility to one's fellow American. As part of a story on the "Buy American" movement, the CBS news program 60 Minutes visited the Detroit Auto show in January 1992. During the visit, two salesmen working at the General Motors Geo exhibit were questioned about the value of buying American products. One voiced strong support for the view that Americans should only buy American cars. The second, Matt Darcy, disagreed. While the cameras recorded his words, Darcy said, "If America makes a good product, buy it. If they don't, I buy what's good for the money. I don't have to spend money just because it's American. When Darcy retuned to his job as a salesman at Gordon Chevrolet in Garden City, Michigan, and the program aired, he was fired. His employer justified Darcy's dismissal on the grounds that Darcy's comments offended many customers who worked in the auto industry.
Did Matt Darcy owe any loyalty to American workers, many of whom were his customers? Did he owe more loyalty to Americans who worked for American corporations, or to Americans who were employed in Japanese corporations?
How might a defender of the free market such as Milton Friedman respond to the "Buy American" movement? Would your answer be different if you were to adopt a more corporate socially responsible position, as espoused by Edward Freeman? What is the socially responsible position in this case?
Would it have been ethical for Darcy to lie in this case? Could there have been other things, short of an outright lie, that he could have said that would have pleased his employer? Would it have been ethical for him to do so?
During the 1980's, the US automakers lost the competition to Japanese and European firms, and they suffered substantial losses. A major public relations campaign started by the early 1990s to encourage US consumers to "Buy American."
It was promoted by industry, labor, and many politicians to promote the purchase of American cars by appealing to patriotism, loyalty, and a responsibility to one's fellow American. This essay will address the following questions:Did Matt Darcy owe any loyalty to American workers, many of whom were his customers? Did he owe more loyalty to Americans who worked for American corporations, or to Americans who were employed in Japanese corporations?Matt Darcy owed no loyalty to anyone. It is his freedom of speech to say whatever he wants. Everyone has the right to say anything they want. He is entitled to say whatever he wants about the quality of American or Japanese cars. He has no legal or moral obligation to advocate for either side.How might a defender of the free market such as Milton Friedman respond to the "Buy American" movement?Milton Friedman would argue that the "Buy American" campaign would negatively impact the free market and competition. According to him, customers should buy whatever they want, and businesses should compete for those customers. By selecting American cars, the consumer is essentially subsidizing them, as well as denying the opportunity to the Japanese and Europeans who are competing in the market.
If one were to adopt a more corporate socially responsible position, as espoused by Edward Freeman, the answer would be different. The socially responsible position would be to take into consideration how the car was produced and under what working conditions. Consumers should make an effort to buy cars that are produced ethically and support companies that support workers' rights.Would it have been ethical for Darcy to lie in this case? Could there have been other things, short of an outright lie, that he could have said that would have pleased his employer? Would it have been ethical for him to do so?It would not have been ethical for Darcy to lie in this case. The ethical thing to do would be to tell the truth about his opinion on the matter. He could have simply stated that he preferred to buy cars based on their quality, regardless of where they are made. It would not have been ethical for him to lie to please his employer. Instead, he could have politely refused to comment.
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Businesses are said to be "related" when Copyright © by Glo-Bus Software Inc Copying distributing or ad party web proting isange a.the products/services of the different businesses satisfy much the same kinds of buyer needs and are thus purchased by much the same types of buyers. hilated and content copyright violation O b.they face the same types of competitive pressures in their respective industries, and they compete against some of the same rival companies. c.competitive conditions, driving forces, and key success factors in their respective industries are highly similar. d.they both have well-regarded brand names, they are pursuing similar competitive strategies, and they have adopted a number of the same best practices. e.their value chains possess competitively valuable cross-business relationships that present opportunities for the businesses to perform better under the same corporate umbrella than they could by operating as stand-alone entities.
Businesses are said to be "related" when their products/services option (a) satisfy the same buyer needs and are thus purchased by the same types of buyers.
Because of the many possible advantages that are available from related businesses working together in a corporate structure, related businesses have the potential to be better together than apart, allowing for synergy between the businesses.
Relatedness in the corporate context refers to the degree to which the value chains of two or more different businesses are comparable in terms of the types of competitive resources and capabilities they possess or the ways in which they are configured.
There are five primary ways in which businesses can be related. They are as follows:
Businesses with related value chains that are complementary to one another Businesses with similar products that are sold to the same types of customers and target markets.Businesses in the same industry with similar driving forces and key success factors.
Businesses with similar competitive strategies and best practices.Businesses that have competitively valuable cross-business relationships that offer potential opportunities for the businesses to perform better as a result of operating together under the same corporate umbrella than they could by operating as standalone entities.
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You are given the following information on Kaleb's Kickboxing:
Profit margin 6%
Capital intensity ratio 0.8
Debt–equity ratio 0.5
Net income $79,856
Dividends $18,094
Calculate the sustainable growth rate (in %).
The sustainable growth rate for Kaleb's Kickboxing is 4.656%. According to PIMS, an important lever of business success is growth. Among 37 variables, growth is mentioned as one of the most important variables for success: market share, market growth, marketing expense to sales ratio or a strong market position.
To calculate the sustainable growth rate (SGR), we can use the following formula:
SGR = Profit Margin × Capital Intensity Ratio × Retention Ratio
First, let's calculate the retention ratio:
Retention Ratio = (Net Income - Dividends) / Net Income
Substituting the given values:
Retention Ratio = ($79,856 - $18,094) / $79,856 = $61,762 / $79,856 = 0.774
Next, we can calculate the SGR:
SGR = Profit Margin × Capital Intensity Ratio × Retention Ratio
Given:
Profit Margin = 6% (0.06)
Capital Intensity Ratio = 0.8
Retention Ratio = 0.774
SGR = 0.06 × 0.8 × 0.774 = 0.04656
To convert to a percentage, we multiply by 100:
SGR = 0.04656 × 100 = 4.656%
Therefore, the sustainable growth rate for Kaleb's Kickboxing is 4.656%.
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Based on its physical count of inventory in its warehouse at year-end, December 31, 2014, Madison Company planned to report inventory of $35,300. During the audit, the independent CPA developed the following additional information:
a. Goods from a supplier costing $700 are in transit with UPS on December 31, 2014. The terms are FOB shipping point (explained in the "Required" section). Because these goods had not yet arrived, they were excluded from the physical inventory count.
b. Madison delivered samples costing $1,740 to a customer on December 27, 2014, with the understanding that they would be returned to Madison on January 15, 2015. Because these goods were not on hand, they were excluded from the inventory count.
c. On December 31, 2014, goods in transit to customers, with terms FOB shipping point, amounted to $6,000 (expected delivery date January 10, 2015). Because the goods had been shipped, they were excluded from the physical inventory count.
d. On December 31, 2014, goods in transit to customers, with terms FOB destination, amounted to $2,700 (expected delivery date January 10, 2015). Because the goods had been shipped, they were excluded from the physical inventory count.
Required:
Madison’s accounting policy requires including in inventory all goods for which it has title. Note that the point where title (ownership) changes hands is determined by the shipping terms in the sales contract. When goods are shipped "FOB shipping point," title changes hands at shipment and the buyer normally pays for shipping. When they are shipped "FOB destination," title changes hands on delivery, and the seller normally pays for shipping. Begin with the $35,300 inventory amount and compute the correct amount for the ending inventory.
What is ending inventory? $
The correct amount for the ending inventory is $42,000, considering the adjustments for goods in transit with UPS (FOB shipping point) and goods in transit to customers (FOB shipping point).
To calculate the correct amount for the ending inventory, we need to consider the additional information provided by the independent CPA. Let's go through each item and make the necessary adjustments:
a. Goods in transit with UPS: Since the goods are in transit and the shipping terms are FOB shipping point, the title changes hands at shipment. Therefore, the goods should be included in the inventory. We need to add the cost of these goods, which is $700, to the ending inventory.
b. Samples delivered to a customer: The samples were not on hand at the year-end, so they should be excluded from the inventory count.
c. Goods in transit to customers (FOB shipping point): Since the goods have been shipped and the shipping terms are FOB shipping point, the title changes hands at shipment. Therefore, the goods should be included in the inventory. We need to add the value of these goods, which is $6,000, to the ending inventory.
d. Goods in transit to customers (FOB destination): Since the goods have been shipped and the shipping terms are FOB destination, the title changes hands on delivery. Therefore, the goods should not be included in the inventory count.
To calculate the correct ending inventory, we add the adjustments to the initial inventory amount of $35,300:
Ending Inventory = Initial Inventory + Goods in transit (FOB shipping point)
Ending Inventory = $35,300 + $700 + $6,000
Ending Inventory = $42,000
Therefore, the correct amount for the ending inventory is $42,000.
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In infrastructure planning and evaluation, normally first economic evaluation, and then financial evaluation are carried out. True False
In infrastructure planning and evaluation, the order in which economic and financial evaluations are carried out is generally true.
Economic evaluation assesses the overall impact and benefits of a proposed project on the economy, such as job creation or increased productivity. It considers factors like cost-benefit analysis, net present value, and internal rate of return to determine the economic viability of the project.
Financial evaluation, on the other hand, focuses on the financial aspects of the project, such as cash flows, funding sources, and return on investment. It examines whether the project is financially feasible and sustainable in terms of costs and revenue.
By conducting economic evaluation first, decision-makers can gauge the project's potential economic benefits and impacts on society. This information then informs the financial evaluation, where the project's financial viability is assessed in light of the economic analysis. Together, these evaluations provide a comprehensive understanding of the project's feasibility, both from an economic and financial perspective.
In summary, the statement that economic evaluation is carried out before financial evaluation in infrastructure planning and evaluation is true. This sequential approach ensures a thorough assessment of both the economic and financial aspects of the project.
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Intuit's in-depth research recently led to innovative new products and services. For example, employees watched younger consumers get frustrated using an Intuit tax software program because they could
Fortuit Inc. Quicken, a programme for handling individual budgets, was the business's first offering. Among Intuit's other notable software offerings were QuickBooks (for small business accounting) and TurboTax (for filing state and federal taxes in the United States).
The major financial issues that face consumers and small businesses are overcome with the aid of the worldwide technological platform known as Intuit. With products like TurboTax, QuickBooks, Mint, Credit Karma, and Mailchimp, Intuit provides services to 102 million users globally. You may keep your online ledger of accounts from a variety of devices with the help of QuickBooks small company accounting software.
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On January 1, 2024, Waller Sales issued $22,000 in bonds for $14,300. These are eight-year bonds with a stated rate of 13%, and pay semiannual interest Waller Sales uses the straight-line method to amortize the bond discount. After the second interest payment on December 31, 2024, what is the bond carrying amount? (Round your intermediate answers to the nearest cent, and your final answer to the nearest dollar) A. $14,300 B. $22,000 C. $14.781 OD. $15,263
The bond carrying amount after the second interest payment on December 31, 2024, is approximately $21,037.50. The correct answer is option d.
Face value of the bonds = $22,000
Issue price of the bonds = $14,300
Stated rate of interest = 13%
Bond term = 8 years
First, we calculate the bond discount:
Bond discount = Face value of the bonds - Issue price of the bonds
= $22,000 - $14,300
= $7,700
Next, we calculate the annual amortization of the bond discount:
Annual amortization of bond discount = Bond discount / Bond term
= $7,700 / 8
= $962.50
Since the bonds pay semiannual interest, the semiannual amortization of the bond discount is:
Semiannual amortization of bond discount = Annual amortization of bond discount / 2
= $962.50 / 2
= $481.25
After the second interest payment, two semiannual periods have passed. Therefore, the accumulated amortized bond discount would be:
Accumulated amortized bond discount = Semiannual amortization of bond discount × Number of interest payments made
= $481.25 × 2
= $962.50
The bond carrying amount is calculated as follows:
Carrying amount = Face value of the bonds - Accumulated amortized bond discount
= $22,000 - $962.50
= $21,037.50
The correct answer is option d.
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Complete question
On January 1, 2024, Waller Sales issued $22,000 in bonds for $14,300. These are eight-year bonds with a stated rate of 13%, and pay semiannual interest Waller Sales uses the straight-line method to amortize the bond discount. After the second interest payment on December 31, 2024, what is the bond carrying amount? (Round your intermediate answers to the nearest cent, and your final answer to the nearest dollar) A. $14,300 B. $22,000 C. $14.781 OD. $21,037.50.
What discount rate would make you indifferent between receiving $3,305.00 per year forever and $5,596.00 per year for 20.00 years? Assume the first payment of both cash flow streams occurs in one year.
What discount rate would make you indifferent between receiving $3,081.00 per year forever and $5,462.00 per year for 28.00 years? Assume the first payment of both cash flow streams occurs in one year.
The discount rate that would make you indifferent between receiving $3,305.00 per year forever and $5,596.00 per year for 20 years is approximately 7.5%. The discount rate that would make you indifferent between receiving $3,081.00 per year forever and $5,462.00 per year for 28 years is approximately 6.8%.
To determine the discount rate that would make you indifferent between two cash flow streams, we need to calculate the present value of each cash flow and equate them. In this case, we have two scenarios.
In the first scenario, we have $3,305.00 per year forever. This is a perpetuity. The present value of a perpetuity can be calculated using the formula PV = C/r, where PV is the present value, C is the cash flow per period, and r is the discount rate. Plugging in the values, we have PV = $3,305.00/r.
In the second scenario, we have $5,596.00 per year for 20 years. This is an ordinary annuity. The present value of an ordinary annuity can be calculated using the formula PV = C * [1 - (1+r)^(-n)] / r, where n is the number of periods. Plugging in the values, we have PV = $5,596.00 * [1 - (1+r)^(-20)] / r.
By setting the present values of both scenarios equal to each other, we can solve for the discount rate. Solving the equation for the first scenario, we get $3,305.00/r = $5,596.00 * [1 - (1+r)^(-20)] / r. By solving this equation, the discount rate is approximately 7.5%.
Similarly, for the second scenario, we set the present values equal to each other, resulting in $3,081.00/r = $5,462.00 * [1 - (1+r)^(-28)] / r. By solving this equation, the discount rate is approximately 6.8%.
Therefore, the discount rate that would make you indifferent between the cash flows in both scenarios is approximately 7.5% and 6.8%, respectively.
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Which of the following is most clearly an economic question, at least in part? What is the most likely physical cause of autism (a behavioral disorder)? What will happen to living standards in the U.K. (England, etc) now that it has left the European Union? Does the U.S. two-party system tend to produce effective national governance? Which of the two main branches of Christianity is most popular in South America? Question 2 Firms increase the efficiency of production partly by taking advantage of the possibilities associated with resources. double coincidence autarky. divison of labior Money is a tool people developed to help them conduct indirect exchanges barter exchanges. direct exchanges. imaginary exchanses. Question 4 0/6pts Two systems, in our economy, that work together to make the process of conducting exchanges more efficient are Forkets and money direct and indirect exchange.
Out of the following questions given, the most clearly an economic question, at least in part is,because the United Kingdom leaving the European Union will have a significant impact on the country's economy, trade, and the living standards of the people living there.
The economic question is the branch of economics that manages the issue of fulfilling limitless human wants with limited resources and deciding the optimal distribution of those resources to increase social welfare. Economic questions are mainly concerned with how people can get what they need with the limited resources they have available.
Out of the following questions given, the most clearly an economic question, at least in part is, “What will happen to living standards in the U.K. (England, etc) now that it has left the European Union” because the United Kingdom leaving the European Union will have a significant impact on the country's economy, trade, and the living standards of the people living there.
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7. One thing oligopolists must do in order to determine their optimal strategr is A. anticipate the reaction of their customers to their strategyi 8. igrore the reaction of their rivals to their strafegy. C. ignore the reaction of their customers to their stratenr. D. produce a unique product which has no close substitutes.
One thing oligopolist must do in order to determine their optimal strategy is anticipated the reaction of their customers to their strategy, hence option A is correct.
A limited group of businesses sells a comparable product in an oligopoly. It follows that each company's decisions have a big influence on the other businesses in the market.
Oligopolists must thus carefully evaluate how their consumers and competitors will respond to their plans.
However, if it cuts prices too drastically, it might not be able to make enough money to pay its bills. Oligopolists therefore need to strike a balance between price and quantity that will increase their profits.
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Who would be more likely to pay the cost of a tax on beer in the long-run? Beer-drinkers or farmers who currently use their land to grow hops (an ingredient in beer)? Justify your answer.
In the long run, the burden of a tax on beer is likely to be shared by both beer-drinkers and farmers who grow hops. However, the degree to which each group bears the burden will depend on the relative elasticities of demand and supply for beer.
If the demand for beer is relatively inelastic, meaning that consumers are not very responsive to changes in price, then the burden of the tax will fall more heavily on beer-drinkers. This is because the tax increases the price of beer, and consumers will continue to buy it even if the price goes up. As a result, the price of beer will rise, but the quantity demanded will not decrease by much, and beer-drinkers will end up paying most of the tax.
On the other hand, if the supply of hops is relatively elastic, meaning that farmers can easily switch to growing other crops if the price of hops falls too much, then the burden of the tax will fall more heavily on farmers. This is because the tax reduces the demand for beer, and as a result, the price of hops will fall. If farmers cannot quickly switch to growing other crops, they may have to accept lower prices for their hops, which means they will earn less income and will bear most of the tax burden.
However, if both the demand for beer and the supply of hops are relatively inelastic, then the burden of the tax will likely be shared more equally between beer-drinkers and farmers.
In summary, the extent to which beer-drinkers or farmers bear the burden of a tax on beer in the long run depends on the relative elasticities of demand and supply for beer.
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The Last In First Out inventory method will result in a higher ending inventory balance than the First In First Out inventory method (assuming there is price inflation during the period). True or False?
The statement "The Last In First Out (LIFO) inventory method will result in a higher ending inventory balance than the First In First Out (FIFO) inventory method (assuming there is price inflation during the period)" is false.
LIFO and FIFO are inventory cost accounting techniques used to keep track of inventory-related expenses. FIFO inventory management, as the name implies, means first in, first out; the first item that enters the inventory is the first one to leave. It is based on the assumption that products that are purchased first are the first to be sold.The Last In First Out (LIFO) method, on the other hand, assumes that the most recent inventory purchased is the first to be sold. This method works well when prices are on the rise and the most recent inventory is the most expensive. In the case of inflation, LIFO leads to lower profits and higher taxes due to higher inventory prices, which is why it is less common than FIFO.FIFO is an ideal choice when prices are stable, and LIFO is ideal when prices are rising. LIFO will result in a lower ending inventory balance, leading to a lower profit margin in times of inflation. In times of inflation, companies that use LIFO will have lower taxable profits. As a result, they will owe less in taxes.
Conclusion The statement "The Last In First Out inventory method will result in a higher ending inventory balance than the First In First Out inventory method (assuming there is price inflation during the period)" is incorrect.
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Sroufe Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs are $60,000 for proposal A and $80,000 for proposal B. The variable cost is $14.00 for A and $11.00 for B. The revenue generated by each unit is $22.00. a) The break-even point in units for the proposal by Vendor A= ____units (round your response to the nearest whole number).
Sroufe Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The break-even point in units for the proposal by Vendor A is 7500 units (rounded to the nearest whole number).
To calculate the break-even point in units for the proposal by Vendor A, we need to determine the number of units that need to be sold in order to cover both the fixed costs and the variable costs. The break-even point is the level of sales at which the company neither makes a profit nor incurs a loss.
The formula to calculate the break-even point in units is:
Break-even point (in units) = Fixed costs / (Revenue per unit - Variable cost per unit)
Given that the fixed costs for proposal A are $60,000, the variable cost per unit is $14.00, and the revenue per unit is $22.00, we can substitute these values into the formula to calculate the break-even point in units for proposal A.
Break-even point (in units) = $60,000 / ($22.00 - $14.00)
Simplifying the equation:
Break-even point (in units) = $60,000 / $8.00
Calculating further:
Break-even point (in units) = 7500
Therefore, the break-even point in units for the proposal by Vendor A is 7500 units (rounded to the nearest whole number).
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What is the "open job market"?
b. What is the "hidden job market"?
c. What percentage of job seekers find employment through networking?
d. Given an example of a question that you can ask on an informational interview?
e. Explain "personal or professional brand" means, and what is YOUR personal brand?
a. The open job market refers to job opportunities that are publicly advertised and accessible to a wide range of job seekers.
b. The hidden job market refers to job opportunities that are not publicly advertised and are typically filled through personal connections or networking.
c. The percentage of job seekers who find employment through networking varies, but it is estimated to be around 70-80%.
d. An example of a question to ask on an informational interview is, "Can you share any insights or advice on how to break into this industry or company?"
a. The open job market consists of job opportunities that are openly advertised through various channels such as online job boards, company websites, newspapers, and recruitment agencies. These positions are accessible to a wide range of job seekers and can be applied for by anyone who meets the specified qualifications.
b. The hidden job market refers to job opportunities that are not publicly advertised. These positions are often filled through personal connections, referrals, or networking. Many job openings are never formally advertised, and employers rely on recommendations and word-of-mouth to identify potential candidates. Job seekers can tap into the hidden job market by networking, building relationships, and staying active in professional communities.
c. While the percentage may vary depending on the source and context, networking is widely recognized as a highly effective method for finding employment. It is estimated that around 70-80% of job seekers secure employment through networking connections, highlighting the importance of building and leveraging professional relationships.
d. During an informational interview, you can ask questions to gather insights and advice from professionals in your desired field. An example of a question to ask is, "Can you share any insights or advice on how to break into this industry or company?" This question allows the interviewee to provide valuable guidance and information on navigating the specific industry or organization.
e. Personal or professional branding refers to the way an individual presents and promotes themselves to the world, showcasing their unique skills, qualities, and expertise. It involves creating a distinct and positive reputation that distinguishes one from others in their field. A personal brand encompasses elements such as one's values, strengths, experience, and online presence.
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On 1 Dec 2020, Segma Trading Co borrowed $600,000 for 90 days at 5% by signing a noto paryable on the same amount. Required: Soloct the noht journal entry to record the payment of the note at its matunty date Dr Note Payable $600,000 Dr. Interest Expenco $7,500 Dr. Cash $607,500 Cr. Note Payable $600,000 Cr. Interest Expence $5,000 Cr. Interest Payable $2,500 Dr. Note Payable $600,000 Dr. Interest Expence $5,000 Dr. Interest Payable $2,500 Cr. Cash $607,500 Dr. Note Payable $600,000 Dr. Interest Expence $5,000 Cr Cash $605,000
The correct journal entry to record the payment of the note at its maturity date is given by Dr. Note Payable $600,000 Dr. Interest Expense $7,500Cr. Cash $607,500
A note payable is a form of a promissory note, an unconditional written promise made by a borrower to pay a specific amount of money to a lender. Segma Trading Co. borrowed $600,000 for 90 days at a 5% interest rate. The note payable will be due on 1st March 2021.
Here, the amount of note payable is $600,000 and the interest rate is 5%. Therefore, the interest expense would be $7,500 ($600,000 x 5% x 90/360).
Hence, the correct journal entry to record the payment of the note at its maturity date is given by: Dr. Note Payable $600,000 Dr. Interest Expense $7,500 Cr. Cash $607,500.
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Based on the case Amazon's Brutal Workforce, briefly explain 2
ethical issues they face. Propose any 2 recommendations that could
have been adopted by Amazon to increase their business
performance.
Two ethical issues that Amazon faces in the case of its brutal workforce are worker exploitation and disregard for employee well-being.
Worker exploitation: Amazon has faced criticism for its demanding work environment and high expectations placed on employees. Reports have highlighted long working hours, strict productivity targets, and inadequate breaks, leading to physical and mental strain on workers. This raises concerns about fair treatment, work-life balance, and the overall well-being of Amazon employees.
Disregard for employee well-being: The case also highlights instances where Amazon allegedly failed to prioritize the health and safety of its workforce. Reports of strenuous working conditions, lack of sufficient breaks, and insufficient measures to address workplace injuries or illnesses indicate a lack of consideration for employee well-being. This raises ethical concerns regarding the duty of care that Amazon should have towards its employees.
Recommendations for Amazon to improve business performance and address these ethical issues:
1. Enhance worker welfare programs: Amazon should invest in comprehensive worker welfare programs that prioritize employee health, safety, and well-being. This includes providing adequate breaks, implementing fair working hours, and ensuring proper measures for addressing work-related injuries or health issues. By prioritizing employee welfare, Amazon can improve the overall work environment and foster a positive company culture.
2. Strengthen employee engagement and feedback mechanisms: Amazon should establish robust channels for employee feedback and engagement. This includes regular surveys, open communication channels, and mechanisms for employees to voice their concerns or suggest improvements. By actively involving employees in decision-making processes and addressing their feedback, Amazon can create a more inclusive and supportive work environment, fostering employee satisfaction and loyalty.
By implementing these recommendations, Amazon can demonstrate a commitment to ethical practices, improve the well-being of its workforce, and ultimately enhance its business performance. Prioritizing worker welfare and creating a positive work environment can lead to higher employee morale, increased productivity, and improved customer satisfaction, benefiting both the employees and the company as a whole.
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If setup costs are reduced by substantial reductions in setup time, the optimal order quantity will be increased. True False
If setup costs are reduced by substantial reductions in setup time, the optimal order quantity will be increased. This statement is true.
This is because the setup cost represents the cost of preparing a production run, which includes setting up machines, cleaning, and adjustments. The cost of each setup is the same, no matter how many units are produced.
?The optimal order quantity is the one that balances the cost of ordering too few with the cost of carrying too much inventory. The cost of ordering too few units is related to the cost of setting up a production run, while the cost of carrying too much inventory is related to the cost of holding inventory.When there is a significant reduction in setup time, the setup cost is lowered. This reduces the cost of setting up a production run and increases the optimal order quantity.
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Which of the following statements is correct?
(i) An increase in the price of C will decrease the demand for complementary product D.
(ii) A decrease in income will decrease the demand for an inferior good.
(iii) An increase in income will reduce the demand for a normal good.
(iv) A decline in the price of X will increase the demand for substitute product Y
Among the given statements, (ii) "A decrease in income will decrease the demand for an inferior good" is the correct statement. The given statements relate concepts of demand and its determinants in economics.
(i) An increase in the price of C will decrease the demand for complementary product D: This statement is incorrect. Complementary goods are typically consumed together, so an increase in the price of one would generally lead to a decrease in the demand for the other, not vice versa.
(ii) A decrease in income will decrease the demand for an inferior good: This statement is correct. Inferior goods are those for which demand decreases when consumers' income increases. Therefore, a decrease in income would lead to a decrease in the demand for an inferior good.
(iii) An increase in income will reduce the demand for a normal good: This statement is incorrect. Normal goods are those for which demand increases as consumers' income increases. Therefore, an increase in income would generally lead to an increase in the demand for a normal good.
(iv) A decline in the price of X will increase the demand for substitute product Y: This statement is incorrect. Substitute goods are those that can be used in place of each other. A decline in the price of one substitute would generally decrease the demand for the other, not increase it.
In statement (ii) is the correct statement as a decrease in income typically leads to a decrease in the demand for an inferior good.
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Bluegill Company sells 9,400 units at $140 per unit. Fixed costs are $65,800, and operating income is $460,600. Determine the following:
a. Variable cost per unit $fill in the blank 1 b. Unit contribution margin $fill in the blank 2 per unit
c. Contribution margin ratio fill in the blank 3 %
The given information of the Bluegill Company can be tabulated as follows:Sales Revenue($140 per unit * 9,400 units)1,316,000Fixed Cost65,800Operating Income460,600
Determine the following:a. Variable cost per unitVariable cost per unit can be calculated by using the following formula: Variable cost per unit = (Sales Revenue - Total Cost) / Number of Units SoldVariable cost per unit = ($1,316,000 - $65,800) / 9,400Variable cost per unit = $131.06Thus, the value of the variable cost per unit is $131.06.b. Unit contribution marginUnit Contribution Margin can be calculated by using the following formula:Unit Contribution Margin = Sales Price - Variable Cost per unit; Unit Contribution Margin = $140 - $131.06Unit Contribution Margin = $8.94. Thus, the value of the unit contribution margin is $8.94 per unit.c. Contribution margin ratio. The contribution margin ratio can be calculated by using the following formula:Contribution Margin Ratio = (Contribution Margin / Sales Revenue) * 100. Contribution Margin Ratio = ($8.94 / $140) * 100. Contribution Margin Ratio = 6.39%Thus, the value of the contribution margin ratio is 6.39%.
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A corporation is assessing the risk of two capital budgeting proposals. The financial analysts have developed pessimistic, most likely, and optimistic estimates of the annual cash inflows which are given in the following table. The firm's cost of capital is 10 percent. If the projects have five-year lives, the range of the net present value for Project B is approximately ________.
Project A Initial Investment Annual Cash flow Outcome
$20,000 5000 pessimistic
10000 most likely
15000 optimistic
project B initial investment annual cash flow outcome
$100,000 20000 pessimistic
40,000 most likely
100,000 optimistic
A. $201,000
B. $80,563
C. $255,444
D. $303,263
The correct option is not provided. The range of the net present value for Project B is approximately $125,555.35.
To calculate the range of the net present value (NPV) for Project B, we need to calculate the NPV for the pessimistic, most likely, and optimistic cash flow estimates and then determine the difference between the highest and lowest NPV.
The formula to calculate NPV is:
NPV = Initial Investment + (Cash Flow / (1 + Cost of Capital)^n)
For Project B:
Pessimistic NPV:
Initial Investment = $100,000
Cash Flow = $20,000
Cost of Capital = 10%
n = 5 years
NPV(pessimistic) = -$100,000 + ($20,000 / (1 + 0.10)^5) = -$100,000 + ($20,000 / 1.61051) = -$100,000 + $12,407.60 = -$87,592.40
Most Likely NPV:
Initial Investment = $100,000
Cash Flow = $40,000
Cost of Capital = 10%
n = 5 years
NPV(most likely) = -$100,000 + ($40,000 / (1 + 0.10)^5) = -$100,000 + ($40,000 / 1.61051) = -$100,000 + $24,815.21 = -$75,184.79
Optimistic NPV:
Initial Investment = $100,000
Cash Flow = $100,000
Cost of Capital = 10%
n = 5 years
NPV(optimistic) = -$100,000 + ($100,000 / (1 + 0.10)^5) = -$100,000 + ($100,000 / 1.61051) = -$100,000 + $62,037.05 = -$37,962.95
The range of the net present value for Project B is approximately $87,592.40 - (-$37,962.95) = $125,555.35.
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