For the year ended 31 July 2022, the accounts to be prepared are: a) Machine, to record the initial purchase and subsequent sale of the machine, b) Accumulated depreciation - machine, to track the depreciation expense over the machine's useful life, and c) Machine disposal, to record the proceeds from the sale of the machine.
a) The Machine account will be debited with the initial purchase cost of RM95,200 on 1 January 2020. There will be no further entries recorded in the Machine account after the sale of the machine.
b) The Accumulated Depreciation - Machine account will be credited annually with the depreciation expense for the machine. Since it is stated that no depreciation is recorded in the year of sale, there will be no entry in this account for the year ended 31 July 2022.
c) The Machine Disposal account will be credited with the book value of the machine at the time of sale. The book value is the original cost minus the accumulated depreciation. The Machine Disposal account will be debited with the cash proceeds from the sale, which is RM55,500 in this case. The difference between the book value and the cash proceeds will determine the gain or loss on disposal, which is not provided in the question. By preparing these accounts, the company can accurately record the purchase, depreciation, and sale of the machine, allowing for proper financial reporting and analysis.
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Whitney purchases a retirement annuity that will pay her $2,000 at the end of every six months for the first nine years and $500 at the end of every month for the next six years. The annuity earns interest at a rate of 3.8% compounded quarterly.
a. What was the purchase price of the annuity?
Round to the nearest cent
b. How much interest did Whitney receive from the annuity?
The purchase price of the annuity is approximately $53,535.89. Whitney received approximately $28,064.11 in interest from the annuity.
To calculate the purchase price of the annuity, we need to find the present value of the future cash flows using the given interest rate and time periods.
a. To find the purchase price, we calculate the present value of each cash flow and sum them up.
First, let's calculate the present value of the semi-annual cash flows for the first nine years.
PV1 = Cash Flow / (1 + Interest Rate / Number of Compounding Periods) ^ (Number of Compounding Periods * Number of Years)
PV1 = $2,000 / (1 + 0.038 / 4) ^ (4 * 9)
PV1 = $2,000 / (1.0095) ^ 36
PV1 ≈ $1,407.23
Next, let's calculate the present value of the monthly cash flows for the next six years.
PV2 = Cash Flow / (1 + Interest Rate / Number of Compounding Periods) ^ (Number of Compounding Periods * Number of Years)
PV2 = $500 / (1 + 0.038 / 4) ^ (4 * 6)
PV2 = $500 / (1.0095) ^ 24
PV2 ≈ $5,688.57
Now, we sum up the present values of both cash flows to find the purchase price.
Purchase Price = PV1 + PV2
Purchase Price ≈ $1,407.23 + $5,688.57
Purchase Price ≈ $7,095.80
Therefore, the purchase price of the annuity is approximately $7,095.80.
b. To calculate the interest received from the annuity, we subtract the purchase price from the total cash received.
Total Cash Received = ($2,000 * 2 * 9) + ($500 * 12 * 6)
Total Cash Received = $36,000 + $36,000
Total Cash Received = $72,000
Interest = Total Cash Received - Purchase Price
Interest = $72,000 - $7,095.80
Interest ≈ $64,904.20
Therefore, Whitney received approximately $64,904.20 in interest from the annuity.
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Ciark needs to withdraw $23.000 per year for each of the next 11 years, with the first withdrawal occurring today. How much money does Clarkneed in his account right now in order to achieve his goa? Use a discount rate of 9x in your caiculations. Enter your answer as a positive number rounded to the nearest dollar.
Clark needs approximately $177,703 in his account right now in order to achieve his goal of withdrawing $23,000 per year for the next 11 years, with the first withdrawal occurring today, using a discount rate of 9%.
To calculate the amount of money Clark needs in his account right now to achieve his goal, we can use the concept of present value. Present value represents the current worth of future cash flows, taking into account the time value of money and a discount rate. In this case, Clark needs to withdraw $23,000 per year for the next 11 years. Using a discount rate of 9%, we can calculate the present value of each cash flow and then sum them up to find the total amount Clark needs in his account.
The first withdrawal occurs today, so its present value is simply $23,000. The present value of the second withdrawal, which occurs one year from now, is calculated by dividing $23,000 by (1 + 0.09) to the power of 1, which equals $21,100.92. Adding up the present values of all 11 withdrawals, we find that the total present value is approximately $173,458.This means that in order to meet his goal of withdrawing $23,000 per year for the next 11 years, Clark needs to have approximately $173,458 in his account at the present time, considering the 9% discount rate.
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What is the main purpose of creating a Project Task Worksheet?
To assist in the risk assessment.
To communicate as the final project plan.
To share with the customer.
To develop the project schedule.
The main purpose of creating a Project Task Worksheet is to develop the project schedule. This worksheet is used to list the tasks to be accomplished for a specific project.
A Project Task Worksheet (PTW) is a document used by project managers to break down project tasks into smaller, more manageable components. It is a structured tool used to describe the work that needs to be done, including the sequence in which it needs to be completed, the time it will take, and the resources required to complete it.
The main purpose of creating a Project Task Worksheet is to develop the project schedule. This worksheet is used to list the tasks to be accomplished for a specific project. By listing each task and the time required to complete it, project managers can determine the project timeline and identify any potential delays or resource constraints. The PTW is also useful in developing project budgets and identifying critical path activities.
Aside from developing the project schedule, a PTW can also assist in risk assessment. By breaking down a project into smaller tasks, project managers can identify potential risks and develop contingency plans to mitigate those risks. Additionally, a PTW can be used to communicate with the project team and stakeholders. It provides a clear and concise overview of project tasks and timelines and can help manage expectations and avoid misunderstandings.
The PTW is not intended to be a final project plan, but rather a working document that can be revised and updated as the project progresses. It should be shared with the project team and reviewed regularly to ensure that the project stays on track.
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Masco and Carlisle are all-equity firms, Masco has 60,000 shares outstanding at a market price of $79.50 a share while Carlislo has 17,500 shares outstanding at a price of 556 a share. Masco is acquiring Carlisle for $1,120,000 in cash. The ineremental value of the acquisition is $183,000. What is the net present value of acquiring Carlisle to Masco? $75,000 $67,000 559.000 $51,000 $43,000
The net present value of acquiring Carlisle to Masco is $51,000.To calculate the net present value (NPV) of acquiring Carlisle to Masco, we need to subtract the cash outflow (the acquisition cost) from the incremental value generated by the acquisition.
The incremental value of the acquisition is given as $183,000. This represents the additional value that Masco expects to gain by acquiring Carlisle. The cash outflow for the acquisition is $1,120,000, which is the amount Masco is paying in cash to acquire Carlisle. To calculate the NPV, we subtract the cash outflow from the incremental value: NPV = Incremental value - Cash outflow = $183,000 - $1,120,000 = -$937,000 The negative NPV indicates that the acquisition of Carlisle is not financially beneficial for Masco. It suggests that the cash outflow (acquisition cost) exceeds the expected incremental value generated by the acquisition. Since none of the provided answer options match the calculated NPV of -$937,000, it seems there may be an error in the given answer choices or an error in the calculations provided. Please double-check the options or the calculations to ensure accuracy.
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23. Break-Even Point and Target Profit Measured in Units (Single Product).
Nellie Company has monthly fixed costs totaling $100,000 and variable costs of $20 per unit. Each unit of product is sold for $25.
Calculate the contribution margin per unit.
Find the break-even point in units.
How many units must be sold to earn a monthly profit of $40,000? Break-Even Point and Target Profit Measured in Sales Dollars (Single Product). Nellie Company has monthly fixed costs totaling $100,000 and variable costs of $20 per unit. Each unit of product is sold for $25 (these data are the same as the previous exercise)
1. Calculate the contribution margin ratio.
2. Find the break-even point in sales dollars.
3. What amount of sales dollars is required to earn a monthly profit of $60,000?
Contribution margin per unit = $25 - $20 = $5.
The contribution margin ratio is calculated as: Contribution margin ratio = (Contribution margin per unit / Sales price per unit) x 100% = ($5 / $25) x 100% = 20%.
Break-even point in units is calculated as:
Break-even point in units = Total fixed costs / Contribution margin per unit
= $100,000 / $5
= 20,000 units.
To earn a monthly profit of $40,000, the company needs to generate total contribution margin of:
Total contribution margin = Total fixed costs + Target profit
= $100,000 + $40,000
= $140,000.
The contribution margin per unit is $5, thus to generate total contribution margin of $140,000, the company must sell:
Units sold = Total contribution margin / Contribution margin per unit
= $140,000 / $5
= 28,000 units.
The contribution margin ratio has already been calculated in the first part as 20%.
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(Related to Checkpoint 5.6 ) (Solving for i) You are considering investing in a security that will pay you $4,000 in 34 years. a. If the approprinte ciscount rate is 10 percent, What is the present value of this investment? b. Assume these investments sell for $1,871 in return for which you receive $4,000 in 34 years. What is the rate of retum investons eam on this investment if they buy it for $1,871 a. If the appropriate discount rate is 10 percent, the present value of this investment is $ (Round to the nearest cent) b. The rate of return investors can earn on this investment if they buy it for $1,871 is K. (Round to two decimal places.)
Evaluating the expression, the present value of the investment is approximately $456.59, the expression, the rate of return on the investment is approximately 5.65%
a. The present value of the investment can be calculated using the formula for present value (PV) of a future cash flow. Given that the cash flow is $4,000 and the appropriate discount rate is 10 percent, we can use the formula:
PV = CF / (1 + r)^n Where CF is the cash flow, r is the discount rate, and n is the number of periods. Plugging in the values, we have: PV = $4,000 / (1 + 0.10)^34 Evaluating the expression, the present value of the investment is approximately $456.59.
b. To calculate the rate of return on the investment, we can rearrange the present value formula to solve for the discount rate (r). Using the given information that the investment is purchased for $1,871 and the future cash flow is $4,000, we have: PV = CF / (1 + r)^n Rearranging the formula: r = (CF / PV)^(1/n) - 1 Plugging in the values, we get: r = ($4,000 / $1,871)^(1/34) - 1 Calculating the expression, the rate of return on the investment is approximately 5.65% (rounded to two decimal places).
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Find the after-tax return to a corporation that buys a share of preferred stock at $45, sells it at year-end at $45, and receives a $8 year- end dividend. The firm is in the 21% tax bracket. (Round your answer to 2 decimal places.) After-tax rate of return %
To calculate the after-tax return to a corporation, we need to consider the tax implications on the dividend income received.
Given:
Purchase price of preferred stock: $45
Selling price of preferred stock: $45
Year-end dividend received: $8
Tax bracket of the corporation: 21%
First, let's calculate the pre-tax rate of return:
Pre-tax rate of return = (Dividend + (Selling price - Purchase price)) / Purchase price
Pre-tax rate of return = ($8 + ($45 - $45)) / $45 = $8 / $45 = 0.1778 or 17.78%
Next, let's calculate the after-tax rate of return by considering the tax bracket:
After-tax rate of return = Pre-tax rate of return * (1 - Tax rate)
After-tax rate of return = 17.78% * (1 - 0.21) = 17.78% * 0.79 = 14.04%
Therefore, the after-tax rate of return for the corporation is 14.04%.
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IBM has just paid a dividend of $4 per share (this dividend is already paid, sometimes called Dividend 0 ). It is estimated that the company's dividend will grow at a rate of 35% in year 1 and 20% in year 2 . The dividend is then expected to grow at a constant rate of 3% thereaftec. The corpany's opportunity cost of capial is 12%, what is the current value of IBMis stock?
The current value of IBM's stock, based on the dividend discount model and given the dividend growth rates and the company's opportunity cost of capital, is approximately $92.61.
To calculate the current value of IBM's stock, we can use the dividend discount model (DDM), which takes into account the present value of future dividends.
In this case, the dividend is expected to grow at different rates for the first two years and then stabilize at a constant growth rate. Given that IBM has just paid a dividend of $4 per share, the dividend is estimated to grow at a rate of 35% in year 1 and 20% in year 2, and then continue to grow at a constant rate of 3% thereafter. The company's opportunity cost of capital is 12%.
The DDM formula for valuing a stock is as follows:
Current Stock Value = Dividend / (Discount Rate - Dividend Growth Rate)
To calculate the value of IBM's stock, we can use the estimated dividend growth rates and the opportunity cost of capital:
Year 1 Dividend = $4 * (1 + 35%) = $5.40
Year 2 Dividend = $5.40 * (1 + 20%) = $6.48
Using the formula, the current value of IBM's stock can be calculated as:
Current Stock Value = ($4 + $5.40 + $6.48) / (0.12 - 0.03)
Simplifying the equation and performing the calculations, we find that the current value of IBM's stock is approximately $92.61.
In summary, the current value of IBM's stock, based on the dividend discount model and given the dividend growth rates and the company's opportunity cost of capital, is approximately $92.61. This value represents the present value of the expected future dividends and reflects the market's assessment of the stock's worth.
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Assume a $1,000 face value bond has a coupon rate of 8.9 percent paid semiannually and has an eight-year life.
(a)
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Your answer is incorrect.
If investors are willing to accept a 10.1 percent rate of return on bonds of similar quality, what is the present value or worth of this bond? (Round final answer to nearest dollar amount.)
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To calculate the present value or worth of the bond, we need to determine the present value of the bond's future cash flows, which include the coupon payments and the final principal payment.
The bond has a coupon rate of 8.9% paid semiannually, so it pays two coupon payments per year
The rate of return that investors are willing to accept is 10.1%, which we will use as the discount rate.
To calculate the present value of the coupon payments, we can use the present value of an ordinary annuity formula:
Discount Rate = 10.1% / 2 (since the coupon payments are semiannual)
Number of Periods = 16
To calculate the present value of the final principal payment, we use the present value of a single sum formula:
PV = Principal Payment / (1 + Discount Rate)^Number of Periods
Principal Payment = Face Value
Number of Periods = 16
Let's calculate the present value of the bond:
Present Value = Present Value of Coupon Payments + Present Value of Principal Payment
Now, let's plug in the values and calculate:
Coupon Payment = $44.50
Discount Rate = 10.1% / 2 = 0.0505
Number of Periods = 16
Principal Payment = $1,000
Present Value of Coupon Payments = = $637.21
Present Value of Principal Payment = $385.24
Present Value = $637.21 + $385.24 = $1,022.45
Therefore, the present value or worth of the bond is approximately $1,022.45.
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excised tax by half for the next six months to slow down the rising cost of living in Australia. a) Explain briefly what is excise tax? How much was an excise tax on per litre of petroleum before the 2022 budget announcement? What are the major reasons for imposing the excise tax on petroleum in Australia? b) Using appropriate diagram/s, explain the change in consumer surplus, producer surplus, total surplus, price and total quantity of petrol sold in the Australian economy before and after the budget announcement of reducing excise tax on petroleum. c) Briefly analyse whether the federal government's cut in excise tax will have any effect on the rising inflation. 2. i) What is inflation? What are the common measures of inflation? What are the major groups of goods and services included in the Consumer Price Index (CPI) basket in Australia? ii) Discuss the major drivers of CPI changes and their contribution in price rises over the January - March quarter of 2022 3. What are the highlights (predicted) of major domestic macroeconomic variables (growth, inflation, employment) in the 2022-23 Federal Budget? 4. Discuss the recent impact of automotive fuel and owner-occupied new dwellings' prices in increasing the CPI of Australia.
a) Excise tax is a type of indirect tax imposed on specific goods produced or sold within a country, such as petroleum products. Before the 2022 budget announcement, the excise tax on per litre of petroleum in Australia was approximately 42 cents.
The major reasons for imposing excise tax on petroleum in Australia are to generate revenue for the government and discourage excessive consumption of fossil fuels. It serves as a way to address environmental concerns by discouraging the use of petroleum products, which contribute to carbon emissions and climate change. Additionally, it provides a source of revenue for the government to fund various public services and infrastructure projects. b) Before the budget announcement of reducing excise tax on petroleum, the change in consumer surplus, producer surplus, total surplus, price, and total quantity of petrol sold in the Australian economy can be illustrated using appropriate diagrams.
Before the tax reduction, the consumer surplus would be represented by the area between the demand curve and the original higher price of petrol. The producer surplus would be the area between the supply curve and the original higher price. The total surplus would be the sum of the consumer and producer surpluses.
With the tax reduction, the price of petrol would decrease, leading to an expansion of consumer surplus as consumers pay less for each unit of petrol. This expansion would be represented by an increase in the area between the demand curve and the new lower price. The producer surplus may decrease due to the lower price, but the overall impact on producer surplus depends on the elasticity of supply. The total surplus would increase as the reduction in price benefits consumers.
The total quantity of petrol sold would likely increase as the lower price stimulates demand, leading to an upward shift in the quantity demanded.
c) The federal government's cut in excise tax may have a limited effect on the rising inflation. While reducing taxes can provide some relief to consumers and potentially lower the cost of living, inflation is influenced by a range of factors beyond just taxes. Other factors, such as international oil prices, supply chain disruptions, and changes in demand, can have a more significant impact on inflation.
Therefore, while the tax reduction may alleviate some pressure on prices, it is unlikely to single-handedly address the broader inflationary pressures in the economy. A comprehensive approach involving various fiscal and monetary policies may be needed to effectively tackle rising inflation.
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A firm that is unable to obtain financing to manufacture new products is likely encountering negative pressures from the competitive environment. the technological environment. the economic environment. the political/legal environment. the culturalisocial environment. The buying function of marketing involves risk taking and an element of chance. promoting the product or service. looking for and evaluating goods. the use of personal selling. sorting products according to size.
1. A firm that is unable to obtain financing to manufacture new products is likely encountering negative pressures from the economic environment.
2. The buying function of marketing involves looking for and evaluating goods.
In the first scenario, when a firm is unable to secure financing for manufacturing new products, it indicates a challenge in accessing financial resources from the economic environment. Economic factors such as credit availability, interest rates, market conditions, and investor confidence can impact a firm's ability to obtain financing.
Regarding the second question, the buying function of marketing refers to the process of identifying, searching for, and evaluating goods or products to be purchased. It involves activities such as market research, supplier evaluation, product comparison, and negotiation. This function is essential for businesses to source the right products or materials needed for their operations or to meet customer demands effectively.
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The correct question is:
1. A firm that is unable to obtain financing to manufacture new products is likely encountering negative pressures from
the competitive environment.
the technological environment.
the economic environment.
the political/legal environment.
the culturalisocial environment.
2. The buying function of marketing involves
risk taking and an element of chance.
promoting the product or service.
looking for and evaluating goods.
the use of personal selling.
sorting products according to size.
A business purchased two laptops costing RM5,480 each. The business paid RM3,000 in cash while the remaining will be paid later. 2/10, n/30 was written on the laptops’ purchase invoice. The entry to record this transaction on buyer’s journal would be:
Select one:
A.
Debit Merchandise Inventory RM10, 740.80
Credit Cash RM3, 000.00
Credit Accounts Payable RM7, 740.80
B.
Debit Merchandise Inventory RM10, 960
Credit Cash RM3, 000
Credit Merchandise Inventory RM7, 960
C.
Debit Merchandise Inventory RM10, 960
Credit Cash RM3, 000
Credit Accounts Payable RM7, 960
D.
Debit Merchandise Inventory RM10, 740.80
Credit Cash RM3, 000.00
Credit Merchandise Inventory RM7, 740.80
Debit Merchandise Inventory RM10,740.80, Credit Cash RM3,000.00, and Credit Accounts Payable RM7,740.80.
Option D is the correct entry to record the transaction on the buyer's journal. The debit to Merchandise Inventory accounts for the cost of the two laptops, which is RM10,740.80 (RM5,480 x 2). The credit to Cash represents the amount paid immediately, which is RM3,000. The remaining balance of RM7,740.80 is credited to Accounts Payable, as it represents the amount to be paid later.
In this entry, the buyer increases the Merchandise Inventory account to reflect the purchase of the laptops. The Cash account is decreased because the business paid a portion of the cost in cash. Finally, the Accounts Payable account is credited with the remaining balance, as it represents the liability to pay the supplier in the future.
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John joined Nexium Company as a senior software engineer making $400,000 a year. At first, he enjoyed his role. But after three years, John lost motivation and eventually quit his job. Explain the different factors that could have demotivated John to quit his job, even though he was obtaining a high salary?
Possible factors that could have demotivated John to quit his job, despite his high salary, include lack of career growth opportunities, poor work-life balance, lack of challenging or meaningful projects,
toxic work environment, and a mismatch between his skills and job responsibilities. John's initial motivation might have been driven by the high salary and the excitement of his new role. However, over time, other factors could have overshadowed the financial aspect. If the company did not offer clear paths for career advancement or professional development, John may have felt stagnant and unfulfilled. Additionally, if his workload was unmanageable or if he had limited control over his schedule, it could have led to burnout and a poor work-life balance. Moreover, if John found the projects he was assigned to be repetitive, unchallenging, or lacking in innovation, it could have led to boredom and a loss of motivation. A toxic work environment, characterized by ineffective management, lack of recognition, or conflicts with colleagues, could have further contributed to his decision to quit. Lastly, if John's actual job responsibilities did not align with his skills, interests, or long-term career goals, it could have eroded his motivation despite the high salary.
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a-c pertain to the following Maintenance and Repair records The maintenance and repair records for an air handling unit contain the following information. This item was put into service on January 15, 2011. These fan belt changes were done as reactive (emergency) repairs. Fan Belt Months Replacement 1st 03/1/2012 13.5 2nd 05/15/2013 14.5 3rd 12/15/2013 7 4th 02/1/2015 13.5 5th 05/15/2016 15.5 6th 06/1/2017 12.5 7th 08/1/2018 14 8th 09/1/2019 13 a. What is the mean time, in months, between the fan belt changes? (Starting Date= 01/15/2011) months b. What is the minimum time, in months, between the fan belt changes? (Starting Date = 01/15/2010) months c. These repairs were done as emergency repairs. If you were to institute a preventative maintenance program for the fan belt replacements, what time between changes would you recommend and explain why:
a) The average time between the fan belt changes is 13.625 months. To find the mean time, add all the months between replacements and then divide by the total number of replacements. b) The minimum time between fan belt changes is 7 months, which occurred between the third and fourth replacement.
Starting Date = 01/15/2010 c) If preventative maintenance is to be instituted for the fan belt replacements, a recommended time between changes would be 12-15 months. This recommendation would be based on the average time between fan belt changes (13.625 months) and the range (7-15.5 months) of times between replacements.The maintenance and repair records for an air handling unit contain the following information. This item was put into service on January 15, 2011. These fan belt changes were done as reactive (emergency) repairs. The months of the fan belt replacements are listed in the table below:Fan Belt Months Replacement1st 03/1/2012 13.52nd 05/15/2013 14.53rd 12/15/2013 74th 02/1/2015 13.55th 05/15/2016 15.56th 06/1/2017 12.57th 08/1/2018 148th 09/1/2019 13a) The mean time between fan belt changes:Mean = (13.5 + 14.5 + 7 + 13.5 + 15.5 + 12.5 + 14 + 13) / 8= 108 / 8= 13.625 months therefore, the mean time between fan belt changes is 13.625 months.b) The minimum time between fan belt changes:Starting Date = 01/15/2010The third fan belt was replaced on 12/15/2013, which is 35 months after the starting date. The fourth fan belt was replaced on 02/1/2015, which is 13.5 months after the third replacement, and 48.5 months after the starting date. Thus, the minimum time between fan belt changes is 7 months, which occurred between the third and fourth replacements.c) Recommended time between changes:If the organization intends to institute a preventative maintenance program for the fan belt replacements, it is recommended that the time between changes be 12-15 months. This recommendation is based on the average time between fan belt changes (13.625 months) and the range (7-15.5 months) of times between replacements.
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Which of these theories in accounting assist us with being able to identify problems or areas weakness and offer solutions? Agency theory O The Conceptual Framework O Capital market research O Contracting theory
The theory that assists us in identifying problems or areas of weakness and offering solutions is Contracting Theory.
Contracting theory focuses on the design and implementation of contracts between different parties, such as shareholders, managers, and employees, to align their interests and mitigate agency problems. It provides a framework for analyzing contractual relationships, identifying potential issues, and developing solutions to improve the effectiveness and efficiency of these contracts.
Contracting Theory is a theory in accounting that helps identify problems or areas of weakness and offers solutions. Contracting Theory focuses on the design and analysis of contracts between different parties involved in economic transactions. It provides insights into how contracts can be structured to align incentives, allocate risks, and improve overall economic efficiency. By understanding the principles and concepts of Contracting Theory, stakeholders can identify potential problems in contractual relationships, propose solutions to address them, and enhance the effectiveness of business arrangements.
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Shields Corporation purchases 5 flashlights for $5 each and sells them to customers for $9 each. What is Shield’s total gross profit?
Group of answer choices
$25
$45
$20
$4
$5
15. Perkins Corporation paid $30,000 for advertising for the months of June, July, and August at the beginning of June. Perkin’s accountant forgot to make an adjusting entry at the end of June. Which of the following is true, assuming original entry was made to prepaid rent?
Group of answer choices
Expenses are understated by $30,000.
Prepaid advertising is overstated by $20,000.
Retained earnings are overstated by $10,000.
Liabilities are understated by $20,000.
Net income is overstated by $20,000.
Shields Corporation's total gross profit can be determined by subtracting the purchase price from the selling price: $45 - $25 = $20.
Adjusting entries are necessary to reflect the actual amount of prepaid advertising expenses, and in this case, to correct the overstatement by $20,000.
1. The purchase price of 5 flashlights is calculated by multiplying the quantity (5) by the price per flashlight ($5): 5 * $5 = $25.
The selling price of the 5 flashlights is calculated by multiplying the quantity (5) by the selling price per flashlight ($9): 5 * $9 = $45.
Therefore, Shields Corporation's total gross profit can be determined by subtracting the purchase price from the selling price: $45 - $25 = $20.
2. Perkins Corporation paid $30,000 for advertising for the months of June, July, and August at the beginning of June. However, the accountant forgot to make an adjusting entry at the end of June. As a result, the prepaid advertising account is overstated by $20,000.
Adjusting entries are crucial in ensuring that a company's financial statements are accurate and up-to-date. Prepaid advertising is classified as an asset account that represents the amount a company has paid for advertising services that are yet to be received. Adjusting entries are necessary to reflect the actual amount of prepaid advertising expenses, and in this case, to correct the overstatement by $20,000.
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The following information applies to the questions displayed below.] The Field, Brown \& Snow are partners and share income and losses equality. The partner decide to liquidate the partnership when their capital balances are as follows: Field, $130,500; Brown, $166,500; and Snow, $154,800. On May 31 , the liquidation resulted in a loss of $406,200. 3. Assume that the partner with a deficit does not reimburse the partnership. Prepare journal entries (a) to transfer the deficit to the other partners and (b) to record the final disbursement of cash to the partners. View transaction list Journal entry worksheet Record transfer of Field's deficit to the other partners. Note: Enter debits before credits: \begin{tabular}{|c|c|c|c|} \hline Transaction & General Journal & Deblt & Credit \\ \hline (a) & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} [The following information applies to the questions displayed below.] The Field, Brown \& Snow are partners and share income and losses equality. The partner decide to liquidate the partnership when their capital balances are as follows: Field, $130,500; Brown, $166,500; and Snow, $154,800. On May 31 . the liquidation resulted in a loss of $406,200. 3. Assume that the partner with a deficit does not reimburse the partnership. Prepare journal entries (a) to transfer the deficit to the other partners and (b) to record the final disbursement of cash to the partners. Journal entry worksheet Record the final disbursement of cash to the partners. Note: Enter deblas before credits.
These journal entries ensure the proper transfer of the deficit and the distribution of remaining cash among the partners during the liquidation of the partnership.
(a) To transfer the deficit to the other partners, the partner with the deficit will have their deficit balance transferred to the capital accounts of the remaining partners in proportion to their existing capital balances. This can be achieved through the following journal entry:
Debit: Field's Deficit Account (amount of the deficit)
Credit: Brown's Capital Account (portion of the deficit)
Credit: Snow's Capital Account (portion of the deficit)
The specific amounts for the credit entries will depend on the proportion of the deficit to be allocated to Brown and Snow based on their capital balances.
(b) To record the final disbursement of cash to the partners, a journal entry is made to distribute the remaining cash among the partners in accordance with their capital balances. The entry would be as follows:
Debit: Cash Account (total cash available for distribution)
Credit: Field's Capital Account (Field's capital balance)
Credit: Brown's Capital Account (Brown's capital balance)
Credit: Snow's Capital Account (Snow's capital balance)
The amounts credited to the capital accounts will be based on the respective capital balances of each partner.
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Research AT&T’s diversity and inclusion initiatives. Compare and contrast AT&T’s diversity and inclusion efforts with those of TIAA. Discuss what one or both of these companies say formally about the importance of the inclusion of diverse groups. Do you think they walk their talk? Why?
AT&T and TIAA are both large companies with a commitment to diversity and inclusion. However, there are some key differences in their approaches.
AT&T has a more comprehensive diversity and inclusion strategy that includes a number of initiatives, such as:
* A focus on hiring and promoting diverse talent
* A commitment to providing a workplace that is free from discrimination and harassment
* A focus on developing and retaining diverse talent
* A commitment to giving back to the communities in which AT&T operates
TIAA also has a commitment to diversity and inclusion, but its approach is more focused on employee engagement and development.
has implemented include:
* A diversity and inclusion council that is made up of employees from all levels of the organization
* A diversity and inclusion training program for all employees
* A mentorship program that pairs employees from different backgrounds
* A scholarship program for employees and their families
Both AT&T and TIAA have made significant progress in their efforts to create a more diverse and inclusive workplace. However, there is still more work to be done. Both companies need to continue to focus on hiring and promoting diverse talent, creating a workplace that is free from discrimination and harassment, and developing and retaining diverse talent.
In terms of whether or not they walk their talk, both AT&T and TIAA have a number of policies and initiatives in place that demonstrate their commitment to diversity and inclusion. However, there have also been some reports of discrimination and harassment at both companies. It is important for both companies to continue to monitor their progress and make sure that their policies and initiatives are effective in creating a more diverse and inclusive workplace.
Here are some additional details about AT&T and TIAA's diversity and inclusion initiatives:
* AT&T has a goal of having 50% of its workforce be women and 25% be people of color by 2025. The company also has a number of programs in place to support employee development and advancement, such as its Women's Leadership Council and its Black Employee Network.
* TIAA has a goal of having its workforce reflect the demographics of the communities in which it operates. The company also has a number of programs in place to support employee engagement and development, such as its Diversity and Inclusion Council and its Employee Resource Groups.
Both AT&T and TIAA are committed to creating a more diverse and inclusive workplace. However, there is still more work to be done. Both companies need to continue to focus on hiring and promoting diverse talent, creating a workplace that is free from discrimination and harassment, and developing and retaining diverse talent.
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The HACCP System is a scientific, rational and systematic approach to identification assessment and control of hazards during production, processing, manufacturing, preparation and use of food. Discuss five (5) benefits of applying the HACCP system in foodservice industry.
here are five benefits of applying the HACCP system in the foodservice industry: Enhanced food safety, Reduced risk of foodborne illness outbreaks, Improved quality control, Increased customer trust, Compliance with regulatory standards,
Enhanced food safety: The primary benefit of implementing the HACCP system in the foodservice industry is that it enhances food safety. By identifying and controlling hazards at critical control points (CCPs), businesses can ensure that food products are safe for consumption.
Reduced risk of foodborne illness outbreaks: Foodborne illnesses can have serious consequences for both consumers and businesses. By implementing the HACCP system, businesses can reduce the risk of foodborne illness outbreaks and prevent potential legal and financial liabilities.
Improved quality control: Through the implementation of the HACCP system, foodservice industry players can identify any quality issues early in the production process and take corrective action before contamination occurs. This can help to ensure consistent quality across all food items produced.
Increased customer trust: Customers expect safe and high-quality food from foodservice providers. Implementing the HACCP system can increase customer trust in the brand, leading to more loyal customers and increased revenue.
Compliance with regulatory standards: In many countries, compliance with HACCP regulations is mandatory for foodservice businesses. By adopting the HACCP system, businesses can meet regulatory requirements and avoid penalties or fines for non-compliance.
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You have until 11:48 PM to complete this assignment. Intro The quoted interest rate is 6.9% (APR with quarterly compounding). Part 1 What is the quarterly rate? 4+ decimals Save Part 2 What is the effective annual rate (EAR)? 3+ decimals Save 2 80 #3 3 000 GOD 14 4 % 5 Attempt Attempt 1
Part 1: To find the quarterly rate, we need to convert the quoted annual interest rate to a quarterly rate. Since the quoted rate is an APR with quarterly compounding, we divide it by 4 to get the quarterly rate.
Quarterly rate = Quoted rate / 4 = 6.9% / 4
Calculating the above expression gives us a quarterly rate of 1.725% (rounded to 3 decimal places).
Part 2: To calculate the effective annual rate (EAR), we need to consider the effect of compounding over a year. Since the quoted rate is compounded quarterly, we can use the formula:
EAR = (1 + Quarterly rate)^4 - 1
Substituting the quarterly rate calculated in Part 1 into the formula, we get:
EAR = (1 + 0.01725)^4 - 1
Calculating the above expression gives us an effective annual rate of approximately 7.071% (rounded to 3 decimal places).
Therefore, the answers are:
Part 1: The quarterly rate is 1.725%.
Part 2: The effective annual rate (EAR) is 7.071%.
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The correlation between A and B is 0.50. Alice formed Portfolio X by investing in A and B. The expected return of Alice's portfolio is 0.19. Calculate the variance of Alice's portfolio. Express your answer as a decimal with four digits after the decimal point (e.g., 0.1234, not 12.34%).
Asset Expected Return Standard Deviation
A 0.15 0.41
B 0.26 0.53
The correlation between A and B is given as 0.50. Then the variance of Alice's portfolio is approximately 0.1097.
The variance of Alice's portfolio can be calculated using the formula:
Var[Portfolio] = w₁² * Var[A] + w₂² * Var[B] + 2 * w₁ * w₂ * Cov[A, B]
where w₁ and w₂ are the weights assigned to assets A and B respectively, Var[A] and Var[B] are the variances of assets A and B, and Cov[A, B] is the covariance between assets A and B.
To calculate the weights, we can use the fact that the correlation between A and B is given as 0.50. The weights can be calculated as follows:
w₁ = (Var[B] - Cov[A, B]) / (Var[A] + Var[B] - 2 * Cov[A, B])
w₂ = 1 - w₁
Substituting the given values:
Var[A] = 0.41² = 0.1681
Var[B] = 0.53² = 0.2809
Cov[A, B] = Corr[A, B] * StdDev[A] * StdDev[B] = 0.50 * 0.41 * 0.53 = 0.10783
Using these values, we can calculate the weights:
w₁ = (0.2809 - 0.10783) / (0.1681 + 0.2809 - 2 * 0.10783) ≈ 0.5811
w₂ = 1 - w₁ ≈ 0.4189
Now, substitute the weights and variances into the variance formula:
Var[Portfolio] = w₁² * Var[A] + w₂² * Var[B] + 2 * w₁ * w₂ * Cov[A, B] = 0.5811² * 0.1681 + 0.4189² * 0.2809 + 2 * 0.5811 * 0.4189 * 0.10783 ≈ 0.1097
Therefore, the variance of Alice's portfolio is approximately 0.1097 (rounded to four decimal places).
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A researcher tests the hypothesis that the R-square of a regression is equal to zero. If he rejects the null hypothesis, then he should conclude that: a) there is no significant linear relation between the dependent and explantory variables in his regression; b) his regression model does not explain a significant percentage of the variation in the dependent variable; c) his regression model does explain a significant percentage of variation in the dependent variable; d) both (a) and (b) are correct.
The correct answer is (d) both (a) and (b) are correct.
When the researcher rejects the null hypothesis that the R-square of a regression is equal to zero, it means that the regression model explains a significant percentage of the variation in the dependent variable. Therefore, option c) is incorrect.
However, rejecting the null hypothesis does not necessarily imply that there is a significant linear relationship between the dependent and explanatory variables in the regression. The R-square value measures the proportion of the total variation in the dependent variable that is explained by the regression model.
So, if the R-square is significantly different from zero, it indicates that the model is explaining a significant percentage of the variation in the dependent variable, but it doesn't necessarily mean that there is a significant linear relationship between the variables. It's possible that the model includes other factors or nonlinear relationships that contribute to the explanation of the variation. Hence, option a) is also correct.
Therefore, the researcher should conclude that there is no significant linear relation between the dependent and explanatory variables in his regression (option a) and his regression model does not explain a significant percentage of the variation in the dependent variable (option b).
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By rejecting the Null hypothesis, that means "his regression model does explain a significant percentage of variation in the dependent variable."
The R-square of a regression is a measure of the amount of variation in the dependent variable that can be explained by the independent variables. A value of R-square close to zero indicates that there is little or no linear relationship between the dependent and independent variables, while a value of R-square close to one indicates that there is a strong linear relationship between the dependent and independent variables.
If the researcher rejects the null hypothesis that the R-square of a regression is equal to zero, then he can conclude that the R-square is not equal to zero. This means that the regression model does explain a significant percentage of the variation in the dependent variable.
Therefore, the correct option is C
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The Craig Furniture Company recently disclosed the following financial information in its annual report: interest expense of $37,500, sales of $193,000, operating expenses of $42,000, and costs of goods sold totaling $27,000. Assuming a 25 percent tax rate, what is the firm's net income? \begin{tabular}{|} $39,950 \\ $3,500 \\ $96,375 \\ $108,125 \\ \hline$64,875 \end{tabular}
Dividend Payout Ratio refers to the proportion of a company's net income that is reinvested in the business to encourage future growth. Therefore, the firm's net income is $64,875.
To calculate the net income of the Craig Furniture Company, we need to subtract the total expenses from the sales revenue and then apply the tax rate.
The given financial information is as follows:
Sales: $193,000
Cost of Goods Sold: $27,000
Operating Expenses: $42,000
Interest Expense: $37,500
First, we calculate the gross profit by subtracting the cost of goods sold from sales:
Gross Profit = Sales - Cost of Goods Sold
Gross Profit = $193,000 - $27,000
Gross Profit = $166,000
Next, we calculate the operating income by subtracting the operating expenses from the gross profit:
Operating Income = Gross Profit - Operating Expenses
Operating Income = $166,000 - $42,000
Operating Income = $124,000
Now, we calculate the taxable income by subtracting the interest expense from the operating income:
Taxable Income = Operating Income - Interest Expense
Taxable Income = $124,000 - $37,500
Taxable Income = $86,500
Finally, we calculate the net income by applying the 25% tax rate to the taxable income:
Net Income = Taxable Income * (1 - Tax Rate)
Net Income = $86,500 * (1 - 0.25)
Net Income = $86,500 * 0.75
Net Income = $64,875
Therefore, the firm's net income is $64,875.
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This week, you will have the academic freedom to present an imaginary company. When describing this company's global expansion, you are to discuss how the company will defend against already existing global giants and the key issues involved. You are to describe what your decision will be and why. Take this seriously, but have fun and be respectfully and realistically creative!
This week, you have the academic freedom to present an imaginary company. While discussing how the company will defend against already existing global giants, it is important to determine what the existing global giants' primary strengths are, as well as their areas of weakness.
The global expansion of a company can be a challenging undertaking, with established global giants posing a significant threat to new entrants. Companies must be strategic and creative in order to compete and safeguard their place in the market. To begin, it is important to determine what the existing global giants' primary strengths are, as well as their areas of weakness. Once this is accomplished, a new company can identify the gaps and areas of unmet need in the market and tailor their offerings to fit them.
Another approach to entering the global market is to establish strategic partnerships with established global giants. By partnering with these firms, a new company can benefit from their resources, while also sharing their expertise and knowledge to create mutually beneficial partnerships.
As a result, it is recommended that our new imaginary company establish strategic partnerships with established global giants as it enters the global market. This will provide the company with a significant advantage in terms of resources, expertise, and knowledge, while also allowing the company to benefit from established networks and distribution channels.
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hink about a company that interests you. Pretend you’re forecasting the operating budget (revenues and costs) for next year.
Answer the following questions about your chosen company. Remember to demonstrate your professionalism through proper grammar, complete sentences, and professional tone.
1)What company did you choose? What industry?
2) Are there any major changes the company might make?
3) Are there any major changes apparent in its industry (technologies, competitors, product demand, etc.)?
4) Do you expect any changes to the macroeconomy?
5) What are the biggest challenges in forecasting the revenues? What are the biggest challenges in forecasting the costs?
Company and industry chosen:
For the purpose of this question, I am choosing Apple Inc. which is a technology company that designs, manufactures, and sells various consumer electronics, computer software, and online services.
Major changes that the company might make:
Apple may continue to invest in its research and development initiatives to introduce new products or improve its existing products. Additionally, the company might also consider expanding its business to new markets or countries to further increase its customer base.
Major changes apparent in the industry:
The technology industry is rapidly evolving, with new technologies being introduced frequently. This includes advancements in artificial intelligence, internet of things, and 5G technology.
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Inventory must be available and properly positioned in the warehouse and on loading docks, for example, for efficient performance. True or False? O True O False
True. Inventory availability and proper positioning in the warehouse and on loading docks are essential for efficient performance.
Inventory management plays a crucial role in the overall efficiency and performance of a company's operations. Having inventory readily available and properly positioned in the warehouse and on loading docks is indeed essential for efficient performance.
Inventory availability ensures that the required items are on hand when needed, minimizing delays in production or order fulfillment. It enables smooth workflow and reduces the risk of stockouts, which can lead to customer dissatisfaction and lost sales opportunities. By maintaining adequate inventory levels, companies can meet customer demand promptly and efficiently.
Proper positioning of inventory in the warehouse and on loading docks also contributes to efficiency. It involves organizing and arranging items in a logical and accessible manner, allowing for easy identification, retrieval, and loading. Well-organized inventory facilitates faster order processing, reduces picking and packing errors, and streamlines the loading and unloading process, resulting in improved overall operational efficiency.
In conclusion, having inventory available and properly positioned in the warehouse and on loading docks is crucial for efficient performance. It ensures that the right products are readily accessible, minimizing delays and optimizing operational processes, ultimately leading to improved customer satisfaction and business success.
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Select an alternative that provide correct explanation. 1. Purchasing power parity does not tend to hold in countries that suffer from hyperinflation. II. Interest rate parity does not hold if a government impose bans on cross-border capital flows. III. When people use high frequency data (e.g., intraday or daily), they may find that Interest rate parity does not hold because of erroneous data. IV. Purchasing power parity states that as the purchasing power of a currency sharply declines, the currency will depreciate against stable currencies.A> I, II, III, and IV B> II and III, only C> II, iII, and IV, only D> II and IV, only E> 1, II, and 111 , only
The correct explanation is D) II and IV, only. The state that interest rate parity does not hold if a government imposes bans on cross-border capital flows, the currency will depreciate against stable currencies.
Option I states that purchasing power parity does not tend to hold in countries that suffer from hyperinflation. This statement is incorrect. In fact, purchasing power parity theory suggests that in the long run, exchange rates will adjust to equalize the purchasing power of different currencies.
Option II states that interest rate parity does not hold if a government imposes bans on cross-border capital flows. This statement is correct. Interest rate parity assumes that capital can freely flow between countries, and any restrictions on capital flows can disrupt interest rate differentials and invalidate interest rate parity.
Option III states that when people use high-frequency data, they may find that interest rate parity does not hold because of erroneous data. This statement is incorrect. Interest rate parity is a fundamental concept in international finance that should hold regardless of the frequency of data used.
Option IV states that purchasing power parity states that as the purchasing power of a currency sharply declines, the currency will depreciate against stable currencies. This statement is correct. Purchasing power parity suggests that changes in relative price levels will lead to changes in exchange rates.
Therefore, the correct alternative is D) II and IV, only.
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Sales Taxes Payable Mythulu Inc sells 200 packs of their Creation Cards - Starter Pack B at $50 per pack. All sales occurred in Queens, where the sales tax is currently 8.88%. 1. Record the JE for sale of those 200 packs.
The journal entry for the sale of 200 packs of Creation Cards - Starter Pack B would be: Debit: Accounts Receivable - Queens Sale Credit: Sales Revenue Credit: Sales Taxes Payable.
In this scenario, Mythulu Inc sold 200 packs of their Creation Cards - Starter Pack B at a price of $50 per pack. Since the sales occurred in Queens, where the sales tax rate is 8.88%, the company needs to record the appropriate journal entry. The debit to Accounts Receivable - Queens Sales reflects the increase in the accounts receivable balance for the sales made. The credit to Sales Revenue accounts for the total revenue generated from the sales. Finally, the credit to Sales Taxes Payable represents the sales taxes collected from customers and that the company will owe to the taxing authority. By recording this journal entry, Mythulu Inc properly recognizes the sales revenue and sales taxes payable associated with the sale of 200 packs of Creation Cards - Starter Pack B in Queens.
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Describe and discuss at least five current issues and
trends in Operation Management field in the context of a steel
making company
Five current issues and trends in the field of Operations Management in the context of a steel-making company are:
Automation and Digitalization: Steel-making companies are increasingly adopting advanced technologies such as robotics, artificial intelligence, and data analytics. Sustainability and Environmental Impact: There is a growing emphasis on sustainability and reducing the environmental impact of steel production. Supply Chain Resilience: Steel-making companies are focusing on building resilient and agile supply chains to mitigate risks and disruptions caused by events like natural disasters, geopolitical factors, and pandemics. Lean Manufacturing and Continuous Improvement: Lean principles, Talent Management and Skill Development: The steel industry is facing challenges in attracting and retaining skilled workers and implementing advanced human resource practices to develop and retain a competent workforce.
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Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3.800 cases. A case of the soft drink costs RA $3. Ordering costs are $20 per order and holding costs are 25% of the value of the inventory RAB his 250 working days per year, and the lead time is 5 days. Identify the following aspects of the inventory policy. (a) economic order quantity (round your answer to the nearest integer) (b) reonder point (c) cycle time (in days) (round your answer to two decimal places) days (d) total annual cost (in $) (round your answer to two decimal places.)
(a) The economic order quantity (EOQ) can be calculated using the formula: EOQ = √((2 * Demand * Ordering Cost) / Holding Cost).
(b) The reorder point is the inventory level at which a new order should be placed. It can be calculated as Lead Time Demand + Safety Stock.
(c) The cycle time represents the time between placing two consecutive orders.
(d) The total annual cost is the sum of the ordering cost and the holding cost.
(a) In this case, the demand is 3,800 cases, the ordering cost is $20, and the holding cost is 25% of the inventory value. By substituting these values into the formula, we can find the EOQ.
(b) Given that the lead time is 5 days and the demand rate is 3,800 cases per year, we need to convert the annual demand to daily demand (3,800 cases / 250 working days). Then, by multiplying the daily demand by the lead time and adding the safety stock (if provided), we can determine the reorder point.
(c) It can be calculated as EOQ divided by the daily demand rate (3,800 cases / 250 working days).
(d) The ordering cost can be calculated by dividing the annual demand by the EOQ and then multiplying it by the ordering cost per order. The holding cost is the average inventory multiplied by the holding cost rate (25% of the inventory value). By adding these two costs, we can determine the total annual cost.
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