C) M3. large time deposits of more than $100,000 are considered part of the M3 money supply. M3 includes M2 (which consists of M1 and savings deposits) along with large time deposits, institutional money market funds, and other long-term deposits.
These large time deposits are not as liquid as M1 or M2 components, and they typically have longer maturities and higher minimum deposit requirements, making them part of the broader M3 category.
The money supply is divided into different categories based on the liquidity and types of financial assets included. M1 represents the most liquid forms of money, including physical currency, demand deposits (checking accounts), and traveler's checks. M2 includes all components of M1 and adds savings deposits, money market deposit accounts, and small time deposits.
However, large time deposits of more than $100,000 fall outside the scope of M1 and M2 and are considered part of the M3 money supply. M3 encompasses M2 components and extends further to include larger time deposits, institutional money market funds, and certain long-term deposits. These large time deposits typically have longer maturities and require higher minimum deposit amounts, making them less liquid compared to M1 and M2.
By categorizing large time deposits as part of M3, economists can analyze a broader measure of the money supply that includes a wider range of financial assets and provides insights into longer-term saving and investment behavior.
Learn more about money here:
https://brainly.com/question/32960490
#SPJ11
If the supply of bonds shifts to the right, the price of bonds [ Select ] ["increases", "decreases"] , and the interest rate [ Select ] ["decreases", "increases"] .
If the supply of bonds shifts to the right, the price of bonds decreases, and the interest rate increases.
When the supply of bonds shifts to the right, it means that there is an increase in the quantity of bonds available in the market. This increase in supply creates a situation where there are more bonds offered for sale compared to the demand from investors.
As a result, the increased supply of bonds leads to a decrease in their price. With more bonds available, investors have more options to choose from, and sellers may need to lower the prices of their bonds to attract buyers. This decrease in price occurs to achieve a balance between supply and demand.
On the other hand, when the price of bonds decreases, the interest rate increases. The interest rate and bond prices have an inverse relationship. As bond prices decrease, the effective interest rate on those bonds increases. This is because the interest payment remains fixed while the bond price has decreased, resulting in a higher percentage return on investment for buyers.
In summary, when the supply of bonds shifts to the right, the increased supply leads to a decrease in bond prices and an increase in the interest rate. Investors will pay a lower price for the bonds, and the effective interest rate on those bonds will be higher.
Learn more about bonds here:
https://brainly.com/question/31388849
#SPJ11
which of the following is true of document headings?
Document headings serve as titles or labels for sections within a document, making it easier for readers to navigate and comprehend the content.
In more detail, document headings are true in the sense that they provide a hierarchical structure to the information presented in a document. They help organize and divide the content into meaningful sections, allowing readers to quickly locate specific topics or sections of interest. Headings often use different font sizes, styles, or formatting to distinguish them from the body text, making them visually prominent and easy to identify.
Furthermore, headings also play a crucial role in improving the readability and accessibility of a document. By using clear and descriptive headings, authors can create a logical flow of information, guiding readers through the document's structure and facilitating comprehension. Effective headings can enhance the overall user experience, particularly in lengthy documents such as reports, research papers, or manuals.
In summary, document headings serve as navigational signposts, enabling readers to locate specific sections and understand the organization of a document. They contribute to readability, comprehension, and efficient information retrieval, making them an essential element in creating well-structured and user-friendly documents.
Learn more about document here : brainly.com/question/32315954
#SPJ11
The discounted payback rule only considers cash flows up to a certain point in time, whereas all cash flows need to be taken into account for the NPV rule. As such, the NPV computed with the payback rule has to be:
a) larger than the overall NPV
b) smaller than the overall NPV
The NPV (Net Present Value) computed with the discounted payback rule is generally smaller than the overall NPV. Therefore option b is correct.
The discounted payback rule is a method used to evaluate the profitability of an investment by considering the time it takes for the investment to recoup its initial cost, taking into account the time value of money. This rule only considers the cash flows that occur within a specified period of time, typically determined by the payback period.
The payback period is the length of time it takes for the accumulated discounted cash flows to equal or exceed the initial investment. On the other hand, the NPV rule takes into account all cash flows generated by the investment throughout its entire lifespan.
The NPV is calculated by discounting each cash flow to its present value and summing them up. By considering all cash flows, the NPV rule provides a more comprehensive assessment of the investment's profitability, taking into account the timing and magnitude of each cash flow.
Since the discounted payback rule only considers a subset of cash flows, it does not capture the full value of the investment. .
Learn more about payback :
https://brainly.com/question/28304736
#SPJ4
Early in your first audit of Star Corporation, you notice that sales and year end inventory are almost unchanged from the prior year. However, cost of goods sold is less than the previous year and accounts payable are down substantially. Gross profit has increased, but this increase has not carried through to net income as executive salaries have increased significantly. Management informs you that sales prices and purchase prices have not changed during the past year and that there have not been any new products. Star relies on the periodic inventory method. Your initial impression is that internal controls may have several weaknesses. Suggest a possible explanation for the trends described, especially the decrease in Accounts Payable while sales and inventory were constant and gross profit increased. Explain fully the relationships involved
Based on the given information, there are several trends that raise concerns about the internal controls of Star Corporation.
Specifically, the trends include:
Sales and year-end inventory remaining almost unchanged.
Cost of goods sold decreasing compared to the previous year.
Substantial decrease in accounts payable.
Increase in executive salaries.
Increase in gross profit not translating to an increase in net income.
Possible Explanation:
One possible explanation for these trends, particularly the decrease in accounts payable while sales and inventory remained constant and gross profit increased, could be the manipulation of expenses and timing of payments. Here's how the relationships involved could be influenced:
Decrease in Cost of Goods Sold (COGS):
The decrease in COGS despite constant sales and inventory may indicate the underreporting of costs associated with producing goods. This could be achieved by inflating the value of ending inventory or misclassifying certain costs as expenses unrelated to COGS.
Decrease in Accounts Payable:
The substantial decrease in accounts payable suggests that Star Corporation has reduced its outstanding payments to suppliers. This could be done intentionally to improve short-term cash flow or to manipulate financial ratios. By delaying or not recording payables accurately, the company can temporarily overstate its cash position and understate its liabilities.
Increase in Executive Salaries:
The significant increase in executive salaries could be a way for management to extract company profits for personal gain. By inflating executive compensation, they can reduce the reported net income and minimize the amount available for distribution to shareholders or reinvestment in the business.
Learn more about sales link:
https://brainly.com/question/29436143
#SPJ11
Describe at least two types of organisational risks, other than risks related to IP rights and responsibilities, that can arise during strategic planning. Then propose and describe at least two general risk management strategies.
Two types of organizational risks that can arise during strategic planning, other than risks related to IP rights and responsibilities, include financial risks and operational risks. To manage these risks, two general risk management strategies that can be employed are risk avoidance and risk mitigation.
1st paragraph: Types of organizational risks
During strategic planning, organizations can face various risks that can impact their success. Two types of risks, other than those related to intellectual property (IP) rights and responsibilities, are financial risks and operational risks.
Financial risks encompass factors such as inadequate funding, market volatility, and financial mismanagement, which can affect the organization's financial stability and performance. Operational risks, on the other hand, include risks associated with the organization's day-to-day operations, such as supply chain disruptions, technological failures, and human errors, which can hinder the smooth execution of strategic plans.
2nd paragraph: Risk management strategies
To effectively manage these risks, organizations can employ different risk management strategies. One strategy is risk avoidance, which involves identifying and eliminating or minimizing risks by avoiding actions or decisions that may expose the organization to those risks. For example, an organization may choose not to enter a highly volatile market to avoid financial risks associated with unpredictable market conditions.
Another strategy is risk mitigation, which focuses on reducing the impact or likelihood of risks through proactive measures. This may include implementing contingency plans, diversifying suppliers, conducting regular risk assessments, and investing in technology or infrastructure upgrades to enhance operational resilience. By taking such measures, organizations can mitigate the negative consequences of potential risks and increase their ability to navigate through uncertain situations effectively.
By employing risk avoidance and risk mitigation strategies, organizations can better identify, assess, and address the risks that may arise during strategic planning. These strategies help organizations build resilience, protect their financial interests, and enhance their operational capabilities to achieve their strategic objectives.
To learn more about strategic planning click here : brainly.com/question/17924318
#SPJ11
All of the following are examples of a conflict of interest, except.
1) gifts from companies in exchange for ordering their products.
2) having your spouse buy stock in a biomedical firm that supplies your employer.
3) going to a CME course sponsored by your medical school.
4) speaking for a pharmaceutical firm in exchange for a fee.
5) All of these are examples of a conflict of interest.
6) None of these is an example of a conflict of interest.
The correct answer is 6) None of these is an example of a conflict of interest.
A conflict of interest refers to a situation in which a person or entity has competing interests or loyalties that could compromise their impartiality, objectivity, or duty to act in the best interest of another party. Options 1, 2, 4, and 5 all represent examples of conflicts of interest:
1) Gifts from companies in exchange for ordering their products create a conflict of interest as the individual's decision-making may be influenced by personal gain rather than the best interests of their organization or clients.
2) Having your spouse buy stock in a biomedical firm that supplies your employer creates a conflict of interest as it may lead to biased decision-making or favoritism towards the firm in which the spouse has a financial interest.
4) Speaking for a pharmaceutical firm in exchange for a fee creates a conflict of interest as the individual's financial gain may compromise their objectivity and ability to provide unbiased information or recommendations.
5) The option states that all of the examples are conflicts of interest, which is correct.
Option 3, going to a CME (Continuing Medical Education) course sponsored by your medical school, does not represent a conflict of interest. Attending an educational event sponsored by one's own medical school does not inherently create a conflict of interest unless there are specific circumstances or interactions within the course that could compromise impartiality or create biases.
To know more about pharmaceutical, click here:
brainly.com/question/30134373
#SPJ11
What
is ONE
(1) key Social Benefit
of an organization becoming culturally competent?
The key social benefit of an organization becoming culturally competent is the promotion of inclusivity and diversity, leading to a more harmonious and equitable society.
One key social benefit of an organization becoming culturally competent is the promotion of inclusivity and diversity within society. Culturally competent organizations prioritize understanding and respecting different cultures, languages, beliefs, and practices. By doing so, they create an environment where individuals from diverse backgrounds feel welcomed, valued, and included.
When an organization embraces cultural competence, it sends a powerful message that it recognizes and respects the unique perspectives and contributions of all individuals, regardless of their cultural or ethnic background. This leads to a more inclusive society where individuals feel a sense of belonging and are empowered to fully participate and engage in various aspects of social, economic, and civic life.
Promoting cultural competence within an organization also helps to break down barriers and reduce discrimination and prejudice. By fostering understanding and appreciation for different cultures, it challenges stereotypes and biases, leading to more positive interactions and relationships among individuals from diverse backgrounds. This contributes to the creation of a more harmonious and cohesive society, where people can collaborate and cooperate across cultural boundaries.
Furthermore, culturally competent organizations are better equipped to address the needs and preferences of diverse populations. They can develop tailored programs, services, and products that are sensitive to different cultural contexts, ensuring equitable access and outcomes for all individuals. This not only promotes social justice but also enhances the overall well-being and quality of life for individuals from diverse backgrounds.
In summary, the key social benefit of an organization becoming culturally competent is the promotion of inclusivity, diversity, and equal opportunities within society. By embracing cultural competence, organizations contribute to the creation of a more inclusive, harmonious, and equitable society where individuals from diverse backgrounds can thrive and contribute their unique perspectives and talents.
To learn more about culturally competent organizations, Visit:
https://brainly.com/question/32409999
#SPJ11
SDJ, Inc., has net working capital of \( \$ 1,079 \), current liabilities of \( \$ 6,636 \), and inventory of \( \$ 909 \). What is the current ratio? Common financial ratios
The current ratio is calculated by dividing the net working capital by the current liabilities. In this case, the net working capital is $1,079 and the current liabilities are $6,636.
Therefore, the current ratio can be calculated as:
Current Ratio = Net Working Capital / Current Liabilities
Current Ratio = $1,079 / $6,636
Current Ratio ≈ 0.163
The current ratio is a financial ratio that measures a company's ability to cover its short-term obligations with its short-term assets. A ratio below 1 indicates that the company may have difficulties meeting its current liabilities. In this case, the current ratio of approximately 0.163 suggests that SDJ, Inc., has a relatively low current ratio, which means it may face challenges in fulfilling its short-term obligations.
The low current ratio indicates that the company has a significant gap between its current assets and current liabilities. It could be a sign of liquidity issues or inefficient management of working capital. SDJ, Inc. should consider improving its cash flow management, reducing its current liabilities, or increasing its current assets to enhance its ability to meet short-term obligations
To know more about net working capital ,visit:
https://brainly.com/question/32821523
#SPJ11
You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of $10.5 million. Investment A will generate $2.04 million per year (starting at the end of the first year) in perpetuity. Investment B will generate $1.43 million at the end of the first year, and its revenues will grow at 2.2% per year for every year after that.
a. Which investment has the higher IRR?
b. Which investment has the higher NPV when the cost of capital is 7.8%?
c. In this case, for what values of the cost of capital does picking the higher IRR give the correct answer as to which investment is the best opportunity?
Investment B has the higher IRR because its cash flow grows at a rate of 2.2% per year, making the rate of return higher compared to Investment A.
To compare the NPV at a 7.8% cost of capital, we discount the cash flows for both investments. The investment with the higher NPV at this cost of capital is the better option.
Choosing the investment with the higher IRR gives the correct answer when the cost of capital is below the crossover rate, where the NPV of both investments is equal. Above the crossover rate, the investment with the higher NPV would be the better option.
Learn more about IRR here:
https://brainly.com/question/31319948
#SPJ11
In this module week's summit session, we are further exploring the module objectives. For this activity, you will select one of the four module objectives from the Module 8 Overview and Objectives page to address and prepare as a presentation. Provide examples based on external research. Provide at least two references in current APA format. What real-world applications can your chosen objective be tied to?
Your presentation is required to be narrated and at maximum be five minutes in length. Here are your required slides:
-Title Slide
-Introductory Slide
-Content Slide
-Summary/Conclusion Slide
-Reference Slide
Save your assignment using a naming convention that includes your first and last name and the activity number (or description). Do not add punctuation or special characters.
I am doing Distinguish between fixed and flexible exchange rate systems
I'm unable to create or deliver a narrated presentation with slides. However, I can provide you with the information and examples you need for your presentation
Title Slide:
- Title: Distinguishing between Fixed and Flexible Exchange Rate Systems
- Your Name
- Date
Introductory Slide:
- Introduction to exchange rate systems
- Importance of understanding the difference between fixed and flexible exchange rates
- Overview of the objectives of the presentation
Content Slide:
Objective: Distinguish between fixed and flexible exchange rate systems
1. Definition and Characteristics of Fixed Exchange Rate System:
- Definition: A fixed exchange rate system is a regime in which the value of a currency is fixed or pegged to the value of another currency or a commodity.
- Key Characteristics:
- Exchange rates are set by the central bank or government authorities.
- The exchange rate remains relatively stable and is not subject to significant fluctuations.
- The central bank intervenes in the foreign exchange market to maintain the fixed exchange rate.
- Examples: The gold standard, currency boards, and certain currency unions like the Eurozone.
2. Definition and Characteristics of Flexible Exchange Rate System:
- Definition: A flexible exchange rate system is a regime in which the value of a currency is determined by market forces, primarily the supply and demand dynamics in the foreign exchange market.
- Key Characteristics:
- Exchange rates fluctuate freely based on changes in market conditions.
- The central bank or government does not intervene to maintain a specific exchange rate.
- Exchange rates are influenced by various factors such as inflation, interest rates, economic indicators, and market expectations.
- Examples: Most major currencies, including the US dollar, Euro, British pound, and Japanese yen.
3. Real-World Applications and Implications:
- Trade and International Competitiveness:
- Fixed exchange rate systems can provide stability and certainty for international trade and investment.
- Flexible exchange rate systems allow for adjustments in relative currency values to enhance competitiveness.
- Monetary Policy and Economic Stability:
- Fixed exchange rate systems limit the flexibility of monetary policy and require strict control of money supply.
- Flexible exchange rate systems provide monetary policy autonomy to respond to domestic economic conditions.
Summary/Conclusion Slide:
- Recap of the main points discussed: Definitions and characteristics of fixed and flexible exchange rate systems.
- Importance of understanding the distinction between the two systems for trade, international competitiveness, monetary policy, and economic stability.
- Emphasize the relevance and implications of exchange rate systems in the global economy.
Reference Slide:
- Include at least two references in current APA format to support your information.
Learn more about exchange rate systems here: brainly.com/question/33619440
#SPJ11
Suppose you have bonds with a $1,000,000 total par value and a coupon rate of 10%. Assume the bonds have a maturity of 10 years, pays semi-annual coupons, and the current yield of 6%.
(1) What is the present value of the bonds’ all coupon payments?
(2) What is the present value of the bonds’ total par?
The coupon rate for a bond is the interest rate it pays annually, while the current yield is the yield that the bond pays today.
When the coupon rate is higher than the current yield, it suggests that the bond is selling at a premium because its coupon payments are more appealing than its current yield. Suppose you have bonds with a $1,000,000 total par value and a coupon rate of 10%. Assume the bonds have a maturity of 10 years, pay semi-annual coupons, and have a current yield of 6%.
PV of the bond’s coupon payments = C ×[tex][(1 - 1/(1 + r/2)^(2×n)][/tex] / (r/2)
Where C is the coupon rate, n is the number of coupon payments, and r is the periodic discount rate.
Semiannual payments, on the other hand, are made over a ten-year period, resulting in 20 coupon payments. The periodic discount rate is computed by dividing the annual discount rate by two, as follows:
Periodic discount rate = Annual discount rate / 2= 6% / 2= 3%
PV of the bond’s coupon payments = 50,000 × [tex][(1 - 1/ (1 + 0.03)^(2×20)][/tex] / (0.03/2)
PV of the bond’s coupon payments = 50,000 × 15.0463
PV of the bond’s coupon payments = $752,315
Present value of bonds = PV of annuity + PV of lump sum= PV of bond's coupon payments + PV of the face value
The present value of the face value of the bond is the present value of a lump sum. The bond's face value is $1,000,000 and is due in ten years. The periodic discount rate is 3 percent.
PV of the bond’s total par = 1,000,000/[tex](1 + 0.03/2)^(2×10)[/tex]
PV of the bond’s total par = 1,000,000/1.3441
PV of the bond’s total par = $744,094.46
Therefore, the present value of the bonds' coupon payments is $752,315, and the present value of the bonds' total par is $744,094.46.
To know more about interest rate
https://brainly.com/question/29451175
#SPJ11
"An ethical dilemma that a product owner might face that is
user’s privacy. Choosing between prioritize company’s benefits or
respect user’s privacy are tough choices. How would you resolve it
Resolution: Prioritize user privacy by implementing strong data protection measures and obtaining informed consent, while also finding creative ways to generate revenue without compromising privacy.
The product owner can resolve the ethical dilemma by placing a higher emphasis on user privacy. This can be achieved by implementing robust data protection practices, such as encryption and anonymization, and obtaining explicit consent from users regarding data usage. Additionally, the product owner can explore alternative revenue streams, such as offering premium features or partnerships, that do not require compromising user privacy. Balancing user privacy and company benefits is possible through a thoughtful and ethical approach to data handling and business strategies.
Learn more about product here:
https://brainly.com/question/33332462
#SPJ11
On April I the accounts Recieveable ledger of Ivantoe compony showed the following balances: Morrow l, 100 Rose 1,220 Jennings c02,900 and dent 2,100 . The April Aprit - Theions the neceipt of cash. were as follows.
April The owner. I
I Nonnoe inuested aditional cash
4 Recieved cusiness 7,10 lecieved check for Poyment of account from dent.
5 Recreved poyment in foul for 96 eash eliscount Recieved payment in full for 950 from Jennings c0
8 Made cash sales The cost of sales of marchandise totaling 7,285 .
10 Recieved payment in full for 575 from morrow for invoice na 309
11 Recieved cash refund from a Supplier for damaged merchandise 780
23 Recieved payment in full for 1,030 from Jennings Co for Inuoice no 310
29 Recieved Check for payment of account from Rose Cno cash discount allowed
* Insert the begining balances in the Accounts Recieveable Control and Subsidary accoonts can post the april transactions to these arcounts.
* Prove the agreement
Beginning balances in the Accounts Receivable Control and Subsidiary accounts:
Accounts Receivable Control:
- Morrow: $1,100
- Rose: $1,220
- Jennings Co: $2,900
- Dent: $2,100
Subsidiary accounts:
- Morrow: $1,100
- Rose: $1,220
- Jennings Co: $2,900
- Dent: $2,100
April transactions:
1. Nonnoe invested additional cash:
- Accounts Receivable Control: No entry
- Subsidiary accounts: No entry
4. Received cash from business:
- Accounts Receivable Control: No entry
- Subsidiary accounts: No entry
7. Received check for payment of account from Dent:
- Accounts Receivable Control: Credit Dent $2,100
- Subsidiary accounts: Debit Dent $2,100
10. Received payment in full from Morrow for invoice no. 309:
- Accounts Receivable Control: Credit Morrow $575
- Subsidiary accounts: Debit Morrow $575
11. Received cash refund from a supplier for damaged merchandise:
- Accounts Receivable Control: No entry
- Subsidiary accounts: No entry
23. Received payment in full from Jennings Co for invoice no. 310:
- Accounts Receivable Control: Credit Jennings Co $1,030
- Subsidiary accounts: Debit Jennings Co $1,030
29. Received check for payment of account from Rose (no cash discount allowed):
- Accounts Receivable Control: Credit Rose $1,220
- Subsidiary accounts: Debit Rose $1,220
To prove the agreement, we need to calculate the ending balances in the Accounts Receivable Control and Subsidiary accounts and ensure they match.
Ending balances in the Accounts Receivable Control and Subsidiary accounts:
Accounts Receivable Control:
- Morrow: $0
- Rose: $0
- Jennings Co: $1,870 ($2,900 - $1,030)
- Dent: $0
Subsidiary accounts:
- Morrow: $0
- Rose: $0
- Jennings Co: $1,870 ($2,900 - $1,030)
- Dent: $2,100
The ending balances in the Accounts Receivable Control and Subsidiary accounts match, proving the agreement.
To know more about Accounts Receivable Control, Subsidiary accounts visit:
https://brainly.com/question/6588119
https://brainly.com/question/4656883
#SPJ11
organization is planning to carry out significant restructuring from a traditional organization to a team - based organization . As a leader of this organization , you have been entrusted to implement this change . How would you implement this change ? List the main action items you would do to implement this change .
To implement a change from a traditional organization to a team-based organization, the leader should develop a clear vision, assess the current organizational structure, build a team-based culture, develop and implement a change management plan, provide ongoing support, and evaluate and adjust.
Implementing a change from a traditional organization to a team-based organization can be a complex process that requires careful planning and execution. Here are some main action items that can help in implementing this change:
1. Develop a clear vision and communicate it- Develop a clear vision of what the team-based organization should look like and how it will operate. Communicate this vision to all employees to ensure they understand why the change is necessary and what they need to do to support it.
2. Identify the key stakeholders- Identify the key stakeholders who will be affected by the change, including employees, customers, suppliers, and shareholders. Develop a plan to engage and communicate with them throughout the change process.
3. Assess the current organizational structure-Assess the current organizational structure to identify areas that need to be changed to support the team-based organization. This may involve redefining roles and responsibilities, changing reporting lines, and creating new teams.
4. Build a team-based culture- Develop a team-based culture that supports collaboration, innovation, and continuous improvement. This may involve training employees on new skills and behaviors, creating incentives that encourage teamwork, and recognizing and rewarding team-based achievements.
5. Develop and implement a change management plan- Develop a comprehensive change management plan that outlines the steps needed to implement the change, including timelines, resource requirements, and risk management strategies. Ensure that the plan is communicated to all stakeholders and that progress is regularly reviewed and reported.
6. Provide ongoing support- Provide ongoing support to employees during the transition to the team-based organization. This may involve providing training and coaching, addressing concerns and resistance, and celebrating successes along the way.
7. Evaluate and adjust-Evaluate the effectiveness of the team-based organization and make adjustments as needed. This may involve gathering feedback from employees, customers, and other stakeholders, and making changes to the organizational structure or processes to improve performance.
By following these main action items, leaders can successfully implement the change from a traditional organization to a team-based organization and create a more collaborative, innovative, and productive workplace.
To know more about traditional organization here
https://brainly.com/question/27006855
#SPJ4
Periodic Inventory Methods
1. Elsa’s Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Elsa’s purchases of Xpert snowboards during September is shown below. During the same month, 121 Xpert snowboards were sold. Elsa’s uses a periodic inventory system.
Date Explanation Units Unit Cost Total Cost
Sept. 1 Inventory 26 $ 97 $2,522
Sept. 12 Purchases 45 102 4,590
Sept. 19 Purchases 20 104 2,080
Sept. 26 Purchases 50 105 5,250
Totals 141 $14,442
Instructions
(a) Compute the ending inventory at September 30 and cost of goods sold using the FIFO and LIFO methods. Prove the amount allocated to cost of goods sold under each method.
(b) For both FIFO and LIFO, calculate the sum of ending inventory and cost of goods sold.
What do you notice about the answers you found for each method?
Given information: Elsa's Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Elsa's purchases of Xpert snowboards during September is shown below.
During the same month, 121 Xpert snowboards were sold. Elsa's uses a periodic inventory system. Date Explanation Units Unit Cost Total Cost Sept. 1 Inventory 26 $ 97 $2,522 Sept. 12 Purchases 45 102 4,590 Sept. 19 Purchases 20 104 2,080 Sept. 26 Purchases 50 105 5,250 Totals 141 $14,442(a) Calculate the ending inventory at September 30 and cost of goods sold using the FIFO method.
In the FIFO method, the first inventory purchased is the first one sold. The cost of the first inventory is the cost of the last inventory purchased. Therefore, ending inventory will be valued at the most recent cost and cost of goods sold will be valued at the oldest cost. Date Explanation Units Unit Cost Total Cost Sept.
To know more about enthusiasts visit:
https://brainly.com/question/31498870
#SPJ11
Trane Corp. manufactures long-lived, custom-made equipment, which its customers treat as capital items. Trane's sales force faces much multiple buying influence. Trane's products, which do not become part of the customer's final product, are
Question 1 options:
a) installations.
b) MRO items.
c) accessory equipment.
d) operating supplies.
Trane Corp.'s products, which are long-lived and custom-made equipment, do not become part of the customer's final product. Instead, they can be classified as accessory equipment.
Trane Corp. manufactures custom-made equipment that is not incorporated into the customer's final product. This suggests that the equipment is used alongside or in support of the customer's primary production processes. In such cases, the equipment can be categorized as accessory equipment.
Accessory equipment refers to additional items or components that are used in conjunction with the main equipment or machinery but are not integral to the final product.
Unlike installations, which typically involve the setup or assembly of equipment, or MRO (maintenance, repair, and operations) items, which are consumable or replaceable components needed for ongoing maintenance, Trane's products are designed to be long-lived and custom-made. Therefore, they do not fall under the categories of installations or MRO items.
Similarly, operating supplies, such as raw materials or consumables used in the production process, are not applicable in this case as Trane's equipment does not become part of the customer's final product. Thus, the most appropriate classification for Trane's products would be accessory equipment.
Learn more about customer's here:
https://brainly.com/question/32281461
#SPJ11
A firm must deliver the following number of products during the next four weeks; in week 1,200 products; in week 2,300 products; in week 3,200 products; in week 4,400 products. During weeks 1 and 3 , a $12 changing cost is incurred for produced products and during weeks 2 and 4 , a $10 changing cost is incurred for produced products. The inventory cost is $1.6 for each product in stock at the end of a week. The cost of setting up for production is $200 during a week. Moreover, the products are produced in 100 batches each week. Given that the initial inventory level is 0 units, use dynamic programming to determine an optimal production schedule.
The optimal production schedule, determined using dynamic programming, are as follows: Week 1 - produce 200 products, Week 2 - produce 100 products, Week 3 - produce 100 products, Week 4 - produce 200 products.
To determine the optimal production schedule, we use dynamic programming to minimize the total cost incurred by the firm. We start with an initial inventory level of 0 units and consider each week individually.
In Week 1, the firm needs to deliver 200 products. Since the cost of setting up for production is $200 per week and each batch produces 100 products, it is optimal to produce 2 batches (200 products) in Week 1. This incurs a changing cost of $12 per product, resulting in a total changing cost of $2,400. Since there is no inventory at the beginning of Week 1, no inventory cost is incurred.
In Week 2, the firm needs to deliver 300 products. It is optimal to produce 1 batch (100 products) to meet the demand. This incurs a changing cost of $10 per product, resulting in a total changing cost of $1,000. At the end of Week 2, there are 100 products in inventory, resulting in an inventory cost of $160.
In Week 3, the firm needs to deliver 200 products. It is optimal to again produce 1 batch (100 products) to meet the demand. This incurs a changing cost of $12 per product, resulting in a total changing cost of $1,200. At the end of Week 3, there are 100 products in inventory, resulting in an inventory cost of $160.
In Week 4, the firm needs to deliver 400 products. It is optimal to produce 2 batches (200 products) to meet the demand. This incurs a changing cost of $10 per product, resulting in a total changing cost of $2,000. At the end of Week 4, there are 100 products in inventory, resulting in an inventory cost of $160.
Learn more about Dynamic Programming
brainly.com/question/30885026
#SPJ11
To build their savings, a family plans to save $900 each quarter. Their savings are erpected to eam 6.86x per annum compounded quarterly. The first deposit of $900 will be in exactly one quarter (3 months). After 14 years and 56 deposits, how much will the family have in savings? a. 96885.24 b. 101061.33 C. 105237.42 d. 83521.76 e. 74334.37 f. 78510.46
The family will have approximately $105,237.42 in savings after 14 years and 56 deposits. Therefore, the correct option is C. 105237.42.
To calculate the future value of the family's savings after 14 years and 56 deposits, we can use the formula for the future value of a series of deposits:
FV = PMT * ((1 + r)^n - 1) / r
Where FV is the future value, PMT is the periodic payment, r is the interest rate per period, and n is the number of periods.
In this case, the periodic payment is $900, the interest rate per period is 6.86% (or 0.0686 as a decimal), and the number of periods is 56 (since there are 4 deposits per year for 14 years).
Plugging these values into the formula, we can calculate the future value:
FV = $900 * ((1 + 0.0686)^56 - 1) / 0.0686
After evaluating this expression, we find that the family will have approximately $105,237.42 in savings after 14 years and 56 deposits. Therefore, the correct option is C. 105237.42.
Learn more about PMT here :
brainly.com/question/30636816
#SPJ11
Mini case −10 marks Care giving is an important service that is provided to aging seniors. As people get older, they need more care and often times, the seniors are looking for an opportunity to get care while they still live at home and not having to go to a care facility. Jill was working with a care giving company called, 'Home Support Care'. She was a caregiver for that company for 5 years but felt that the company provided some services but there were other areas they could be better at and that the interactions with the seniors was more transactional. Jill decided to start up her own company in 2018 called 'Care-Full Services'. The idea was that Jill would like to speak with her clients and find out what needs they require, and she would like to fulfill them. It would be more based on tailoring the needs to the seniors as opposed to what her previous company did which was just provide basic services. 4 Jill was so excited to launch her small business. Slowly, she began to get caregivers that she would be able to send to client homes. Often times family members were the people she was dealing with and wanted to ensure that the family and the seniors were well looked after. By 2020, she was running her small business with 10 care givers on staff that she could send out. Jill took great care in training her staff, making sure they were looked after and treated them very well. Her thoughts were that if she treated her caregivers well, they would enjoy being a part of the company, would stay with the company and provide better care and service to the seniors. Jill was so excited to launch her small business. Slowly, she began to get caregivers that she would be able to send to client homes. Often times family members were the people she was dealing with and wanted to ensure that the family and the seniors were well looked after. By 2020 , she was running her small business with 10 care givers on staff that she could send out. Jill took great care in training her staff, making sure they were looked after and treated them very well. Her thoughts were that if she treated her caregivers well, they would enjoy being a part of the company, would stay with the company and provide better care and service to the seniors. Things seemed to be progressing along but slowly challenges emerged. A challenge that Jill began to encounter was that there were different requirements from her clients. Some of them needed home care, others were in hospital and needed their home to ready when they arrived from the hospital. Jill would work to get the home prepared, there were also times where clients would need home prescription or grocery deliveries. Jill wanted to do all this but found it very difficult because there was some work where she had set scheduled times for her caregivers at certain homes for set periods of time and that seemed to work well. However, at times, there were urgent calls or random requests that caused her to try and fill the vacant gaps and she found it challenging. Jill was not only trying to run her business, but she was also trying to jump in where she could do those random requests. This meant that she was trying to do the administrative work and the hands on caregiving at times. a) One important area Jill needs to consider, is the idea of her varied services and market segment for 'Care-full Services'. Identify one market segment strategy Jill could use and how would it apply 3 marks b) Considering management skills, identify an area of management skills where she is doing well and another where she is having a challenge, define each one and apply each one to the case. −4 marks c) Time to offer a solution. Taking a theory/concept you have not shared in this exam, share it with Jill as a possible solution to address her challenges. Share one solution that impacts her business or a solution that impacts her management challenges. Explain the theory you select and how it might apply to resolving Jill's business problems. −
In terms of management skills, Jill, the owner of 'Care-Full Services', excels in employee management but struggles with balancing administrative work and hands-on caregiving.
a) One market segment strategy Jill could use is targeting a niche market. Instead of trying to cater to all types of care needs, she could specialize in a specific segment such as post-hospital care or specialized medical care. By focusing on a particular segment, Jill can tailor her services to meet the unique needs of that target market and develop expertise in delivering high-quality care within that specific area.
b) Jill demonstrates strong skills in employee management by providing training, treating her caregivers well, and fostering a positive work environment. However, she faces challenges in time management and balancing administrative work with hands-on caregiving. This can lead to inefficiencies and may affect the overall business operations.
c) To address Jill's challenges, implementing a scheduling software can be beneficial. One possible solution is using a resource allocation theory like "Optimal Task Assignment." This theory emphasizes the efficient allocation of resources (caregivers) to tasks (client needs) to maximize productivity. By using a scheduling software that considers caregiver availability, skills, and client requirements, Jill can automate the task assignment process, optimize caregiver utilization, and minimize scheduling conflicts. This would allow her to focus more on managerial responsibilities, ensure timely service delivery, and improve overall operational efficiency.
Learn more about market segment here:
https://brainly.com/question/28067681
#SPJ11
Bramble Company's variable selling and administrative expenses are 14% of net sales. Fixed expenses are $62,000 per quarter. The sales budget shows expected sales of $248,000 and $297.600 in the first and second quarters. respectively. What are the total budgeted selling and administrative expenses for each quarter?
The total budgeted selling and administrative expenses for each quarter are $96,720 and $103,664, respectively.
Variable expenses for the Bramble Company will change in proportion to the changes in sales revenue.
Meanwhile, fixed expenses would remain constant regardless of the change in sales revenue.
Let's first calculate the variable selling and administrative expenses for each quarter:1st quarter:
Variable expenses = 14% × $248,000
= $34,720
2nd quarter:
Variable expenses = 14% × $297,600 = $41,664
Next, add fixed expenses to the variable expenses to get the total budgeted selling and administrative expenses for each quarter.
1st quarter:
Total budgeted expenses = $34,720 + $62,000
= $96,720
2nd quarter:
Total budgeted expenses = $41,664 + $62,000
= $103,664
Therefore, the total budgeted selling and administrative expenses for each quarter are $96,720 and $103,664, respectively.
Know more about expenses here:
https://brainly.com/question/14697297
#SPJ11
A firm requires an investment of \( \$ 30,000 \) and borrows \( \$ 10,000 \) at \( 7 \% \). If the return on equity is \( 14 \% \) and the tax rate is \( 25 \% \), what is the firm's WACC?
The weighted average cost of capital (WACC) for the firm is 10.75%.
To calculate the WACC, we need to consider the cost of equity and the cost of debt. The cost of equity is the return on equity, which is given as 14%. The cost of debt is the interest rate on the borrowed amount, which is 7%.
First, we calculate the cost of equity (Ke):
Ke = Return on equity = 14%
Next, we calculate the cost of debt (Kd):
Kd = Interest rate on debt = 7%
Now, we need to calculate the weights of equity (We) and debt (Wd) in the firm's capital structure. The weight of equity is the proportion of equity in the total investment, and the weight of debt is the proportion of debt in the total investment.
Total investment = Equity investment + Debt borrowed
Total investment = $30,000 + $10,000 = $40,000
We = Equity investment / Total investment
We = $30,000 / $40,000 = 0.75
Wd = Debt borrowed / Total investment
Wd = $10,000 / $40,000 = 0.25
Finally, we can calculate the WACC using the formula:
WACC = (We * Ke) + (Wd * Kd)
WACC = (0.75 * 14%) + (0.25 * 7%)
WACC = 10.5% + 1.75%
WACC = 10.75%
Therefore, the firm's WACC is 10.75%.
Learn more about firm here:
https://brainly.com/question/32241343
#SPJ11
How effective communication can gel facilitate change
in. An organisation and allow the employees to embrace the
change?
Effective communication plays a crucial role in facilitating change within an organization and enabling employees to embrace that change. It helps create a shared understanding, builds trust, and provides clarity on the reasons for the change. By effectively communicating the change, organizations can address concerns, alleviate resistance, and foster a positive environment for employees to embrace the change.
In order for change to be successfully implemented, effective communication is essential. Firstly, communication allows leaders to clearly articulate the purpose, goals, and benefits of the change. This helps employees understand the need for change and creates a sense of urgency. It also provides transparency, which is crucial for building trust and credibility. When employees receive open and honest communication about the change, they are more likely to feel involved and valued, increasing their willingness to embrace the change.
Secondly, effective communication helps address employees' concerns and manage resistance. By actively listening to employees' feedback and addressing their questions and uncertainties, organizations can alleviate fears and anxieties associated with change. Communication channels, such as town hall meetings, workshops, and regular updates, enable leaders to engage in dialogue and provide support, fostering a sense of psychological safety for employees during the transition.
Furthermore, communication allows for continuous feedback and adjustment. By encouraging employees to share their experiences, challenges, and suggestions, organizations can make necessary modifications to the change process, ensuring it aligns with employees' needs and concerns. This promotes a collaborative culture and empowers employees to actively participate in shaping the change.
Overall, effective communication serves as a catalyst for change by fostering understanding, building trust, addressing concerns, and promoting employee engagement. It creates an environment where employees feel informed, supported, and empowered, enabling them to embrace the change and contribute to the organization's success.
To learn more about Effective communication click here: brainly.com/question/25793182
#SPJ11
By reviewing IBM's income statements, we can infer:
O IBM must have made an acquisition
O IBM has operations only in the US
O IBM has three primary revenue streams, including services, sales, and financing
O IBM's revenue has been increasing each of the past three years
O None of the above
By reviewing IBM's income statements, we cannot infer any of the options provided.
The income statements provide information on IBM's revenues, expenses, and profitability, but they do not directly provide information about acquisitions, geographical operations, specific revenue streams, or revenue trends over the past three years. To obtain accurate information regarding IBM's acquisitions, operations, revenue streams, and revenue trends, it would be necessary to refer to additional sources such as IBM's annual reports, financial statements, or official announcements.
To know more about expenses, visit:
https://brainly.com/question/29850561
#SPJ11
Which of the following statements could most likely create an express warranty? "This is the best car available in town." "This motorcycle will double in value in the next ten years." "These tires have 10,000 miles left on them." "This antique is quite a bargain."
"This motorcycle will double in value in the next ten years." is the statement that could most likely create an express warranty.
An express warranty is a specific promise or guarantee made by a seller regarding the quality, performance, or characteristics of a product. In this statement, the seller is explicitly stating that the motorcycle's value will double in the next ten years, which can be considered a guarantee or promise about its future worth.
Among the given statements, "This motorcycle will double in value in the next ten years." is the most likely to create an express warranty. By stating that the motorcycle will double in value within a specific timeframe, the seller is making a clear guarantee about the future worth of the product.
Express warranties are important because they give consumers confidence in the product they are purchasing and provide legal protection in case the product fails to meet the promised standards. It's crucial for sellers to be cautious when making such statements and ensure they can fulfill the warranty to avoid potential liability.
Remember, an express warranty can be created by any statement that explicitly guarantees or promises a certain outcome or characteristic of the product, and it should be distinguished from mere opinions or statements of subjective value.
To know more about warranty, visit:
https://brainly.com/question/14227081
#SPJ11
You are given an investment to analyze. The cash flows from this investment are End of year 1. $25,560 2. $1,980 3. $5,780 4. $13,400 5. $7,810 What is the present value of this investment if 15 percent per year is the appropriate discount rate?
The present value of the investment, given the cash flows and a discount rate of 15 percent per year, is $42,638.12.
To calculate the present value of the investment, we need to discount each cash flow based on the appropriate discount rate of 15 percent per year. The present value of each cash flow is obtained by dividing the cash flow by (1 + discount rate) raised to the power of the corresponding year.
Using the formula for calculating the present value of each cash flow, we find:
PV1 = $25,560 / (1 + 0.15)^1 = $25,560 / 1.15 = $22,217.39
PV2 = $1,980 / (1 + 0.15)^2 = $1,980 / 1.3225 = $1,496.23
PV3 = $5,780 / (1 + 0.15)^3 = $5,780 / 1.520875 = $3,796.87
PV4 = $13,400 / (1 + 0.15)^4 = $13,400 / 1.74900625 = $7,662.98
PV5 = $7,810 / (1 + 0.15)^5 = $7,810 / 2.01135765625 = $3,464.65
To find the total present value, we sum up the present values of each cash flow:
Total present value = PV1 + PV2 + PV3 + PV4 + PV5 = $22,217.39 + $1,496.23 + $3,796.87 + $7,662.98 + $3,464.65 = $38,638.12
Therefore, the present value of the investment, considering the given cash flows and a discount rate of 15 percent per year, is $42,638.12.
Learn more about investment here:
https://brainly.com/question/15105766
#SPJ11
Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $29,000 in fixed costs to the $270,000 currently spent. In addition, Mary is proposing that a 5% price decrease ( $40 to $38 ) will produce a 25% increase in sales volume (20,000 to 25,000). Variable costs will remain at $25 per pair of shoes. Management is impressed with Mary's ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety.
Instructions
a. Prepare a CVP income statement for current operations and after Mary's changes are introduced. (Show column for total amounts only.) Would you make the changes suggested?
b. Compute the current break-even point in sales units, and compare it to the break-even point in sales units if Mary's ideas are implemented.
c. Compute the margin of safety ratio for current operations and after Mary's changes are introduced. (Round to nearest full percent.)
c. Current margin of safety ratio 10%
Compute contribution marqin, fixed costs, break-even point, sales for tarqet net income, and marqin of safety ratio.
Mary Willis, the advertising manager for Bargain Shoe Store, proposes changes to a major promotional campaign. These changes include installing a new lighting system and increasing display space, resulting in $29,000 in fixed costs.
Additionally, she suggests a 5% price decrease to $38 per pair of shoes, expecting a 25% increase in sales volume. Variable costs remain at $25 per pair. To evaluate the impact of these changes, a CVP (Cost-Volume-Profit) income statement is prepared for current operations and after implementing Mary's ideas. The break-even point in sales units and the margin of safety ratio are also computed. This information helps assess the feasibility and potential effects of Mary's proposed changes.
a. To analyze the effects of Mary's proposed changes, a CVP income statement is prepared for the current operations and after implementing her ideas. The CVP income statement shows the total amounts for sales, variable costs, contribution margin, and fixed costs, providing a clear overview of the financial implications. By comparing the two scenarios, it becomes evident how Mary's changes impact the company's profitability.
b. The break-even point in sales units is computed to determine the sales volume needed to cover all costs and reach a break-even point. By comparing the current break-even point with the break-even point after implementing Mary's changes, the impact on the sales volume required for profitability is assessed. If the break-even point decreases, it indicates that Mary's changes could potentially improve the company's financial position.
c. The margin of safety ratio is calculated to assess the company's cushion above the breakeven point. It represents the percentage by which sales can decline before the company starts operating at a loss. By comparing the current margin of safety ratio with the ratio after Mary's changes, it can be determined whether her ideas increase or decrease the company's ability to withstand fluctuations in sales.
d. By analyzing the CVP income statement, break-even point, and margin of safety ratio, management can make an informed decision regarding Mary's proposed changes. If the changes result in a more favorable financial position, such as a lower break-even point or an increased margin of safety, it would be advisable to implement them. Conversely, if the changes lead to a less favorable financial situation, management may need to reconsider or modify Mary's ideas to ensure profitability and financial stability.
Learn more about sales here:
brainly.com/question/29436143
#SPJ11
This year, Jeff has the following Capital Gains/Loss transactions:
1. Sold ABC Shares: Proceeds was $4,000, Cost was $2,000
2. Sold LPP Assets: Proceeds was $5,000, Cost was $500.
3. Sold XYZ Shares: Proceeds was $7,000, Cost was $15,000
This year, Jeff will report is Minimum Taxable Capital Gains on Line 127000 to be
a ($1,500)
b SO
c $3,000
d $(2,000)
Jeff's Minimum Taxable Capital Gains on Line 127000 is a. ($1,500).
How to find?So, the calculation for Capital Gains/Loss Transactions are as follows:
Capital Gain/Loss = Proceeds - Cost
Cost and Proceeds are in $ so; Capital Gain/Loss will be in $
We have, Capital Gain/Loss for Sold ABC Shares $4,000 - $2,000 = $2,000
Capital Gain
Capital Gain/Loss for Sold LPP Assets $5,000 - $500 = $4,500 Capital Gain
Capital Gain/Loss for Sold XYZ Shares $7,000 - $15,000 = $(8,000) Capital Loss
Net Capital Gains = $2,000 + $4,500 - $8,000
= $(1,500).
Thus, Jeff's Minimum Taxable Capital Gains on Line 127000 is a ($1,500).
Hence, option a ($1,500) is the correct answer.
To know more on capital visit:
https://brainly.com/question/32408251
#SPJ11
Suppose today a corporate treasurer from a U.S. company is saying the following to her investment banker: "I will have 1 million euros to buy in 6 months. If the exchange rate is more than 1.05 USD per one EUR, I want you to sell me euros for 1.05 USD per one EUR. If it is less than 0.95 USD per one euro, I will accept to pay you 0.95 USD per one EUR. If the exchange rate is between 0.95 and 1.05, I will buy the euros for the exchange rate". Explain how options written on the EUR/USD exchange rate can be used to satisfy the treasurer.
Options written on the EUR/USD exchange rate can be used to meet the treasurer's requirement for specified exchange rate levels.
Options are financial derivatives that give the buyer the right—but not the obligation—to purchase or sell an underlying asset at a fixed price (the strike price) within a predetermined window of time.In this case, the treasurer has two alternative contracts to choose from with the investment banker:1. Call Option: The treasurer might invest in a call option that entitles her to purchase euros at a predetermined price (strike price). The treasurer exercises the option and the investment banker sells her euros at the agreed-upon rate if the exchange rate is greater than 1.05 USD to one EUR.
learn more treasurer's here :
https://brainly.com/question/21174848
#SPJ11
a) Explain why segmental information is required in company accounts. (5 marks)
b) Identify and explain the two main bases for segmental reporting that for many years were required by financial reporting standards in this area. Discuss the advantages and disadvantages of each basis. (12 marks)
c) What approach is required by the current IASB standard in this area? What are seen to be the advantages and disadvantages of this approach and why might those producing financial reports prefer it to alternative approaches? (8 marks)
TOTAL 25 MARKS
Segmental information is required to provide detailed insights into a company's performance and financial position in different business segments or geographical regions.
Segmental information allows stakeholders to assess the profitability, risks, and growth prospects of individual segments within a company. It helps investors make informed decisions, creditors assess creditworthiness, and managers evaluate performance. By analyzing segmental information, stakeholders can identify areas of strength and weakness, allocate resources effectively, and make strategic decisions. It provides a more comprehensive view of the company's operations and allows for a better understanding of its financial health. Segmental information is crucial for stakeholders to assess the company's overall performance and the impact of different segments on its financial results.
Learn more about Segmental information here:
https://brainly.com/question/20229100
#SPJ11
When the interest rate rises, the value of financial assets is expected to
a. increase
b. no change
c. decrease
d. interest rates don't change
When the interest rate rises, the value of financial assets is expected to decrease. This is because as interest rates increase, the cost of borrowing money also increases.
As a result, individuals and businesses may be less willing or able to borrow money to invest in financial assets such as stocks, bonds, or real estate. Additionally, higher interest rates can lead to higher discount rates used to value future cash flows, which can negatively impact the present value of financial assets. Overall, the increased cost of borrowing and the higher discount rates make financial assets less attractive, causing their value to decline in response to rising interest rates.This is because as interest rates increase, the cost of borrowing money also increases.
learn more about financial here:
https://brainly.com/question/32483944
#SPJ11
