On December 31, 2001, Dorsey Company reports the following amounts: (5M)Preferred sharesCommon shares$1,100,0003,900,000Retained earnings1,780,000The preferred shares are $7, no par value, cumulative and issued at $50 per share.
One million common shares, issued at $39 per share, are issued.INSTRUCTIONS: Calculate the book value per common share for each of the following assumptions:(a) There are no preferred dividends in arrears.Book value per common share can be calculated by dividing the total shareholder’s equity (common and preferred) by the number of common shares outstanding. Book value per common share is used to determine the price-to-book ratio, which is calculated by dividing a stock's most recent closing price by the book value per share.
The stock is considered undervalued if the price-to-book ratio is less than 1.0. So, here is the calculation for the book value per common share for this situation.There are no preferred dividends in arrears.Preferred share capital $1,100,000Preferred share capital (total value at $50 per share) = $50 × 22,000 = $1,100,000Common share capital ($39 × 1,000,000 shares) = $39,000,000Retained earnings = $1,780,000Total shareholder’s equity = $42,880,000Number of common shares outstanding = 1,000,000Book value per common share = Total shareholder’s equity / Number of common shares outstanding= $42,880,000 / 1,000,000= $42.88 per common share(b) Preferred dividends are two years in arrears.
To know more about Dorsey compony visit:-
https://brainly.com/question/14523265
#SPJ11
when an anyls is looking at a company for the first time which of the following four activities does he do first ?
When an analyst is looking at a company for the first time, the first activity he does is conducting a SWOT analysis.
SWOT analysis involves examining a company's internal strengths and weaknesses, as well as its external opportunities and threats. By doing so, analysts can identify areas where the company excels and areas where it needs to improve, as well as potential opportunities for growth and potential threats that could impact the company's success.The four activities that an analyst needs to do for conducting a SWOT analysis are as follows:
First, the analyst needs to identify the company's strengths. These could include strong financials, a loyal customer base, or proprietary technology. Second, the analyst needs to identify the company's weaknesses. These could include a lack of resources or expertise in certain areas, a high level of debt, or a poorly performing product line.Third, the analyst needs to identify potential opportunities for the company. These could include new markets to enter, new products or services to develop, or changing consumer trends that the company could capitalize on.
Finally, the analyst needs to identify potential threats that the company could face. These could include changes in government regulations, shifts in consumer behavior, or increased competition from other companies.Thus, conducting a SWOT analysis is the first activity that an analyst should do when looking at a company for the first time. It provides a comprehensive overview of the company's strengths, weaknesses, opportunities, and threats and lays the foundation for further analysis and strategic planning.
To know more about SWOT visit:
brainly.com/question/30780383
#SPJ11
All of the following statements are correct, EXCEPT?
Group of answer choices
IT can enable new competencies.
New options for governance using IT can change how a company works with other firms.
Aligning IT with individual business units can lead to stronger corporate strategies.
New technology capabilities can shape a company's strategic direction.
The statement that is NOT correct among the following statements :All of the following statements are correct, EXCEPT- Aligning IT with individual business units can lead to stronger corporate strategies. This statement is NOT correct.
The following are the ways in which IT enables new competencies:It allows a company to monitor customer behavior to predict future customer preferences. By analyzing customer preferences, a company can tailor its products to meet customers' needs, and this will give the company an edge over its competitors.
IT facilitates innovation. Companies use technology to improve their products and create new ones. As a result, companies can enter new markets.IT enables businesses to improve productivity and reduce costs. IT can automate repetitive tasks that were done manually, thus freeing up staff for more strategic tasks. This can reduce costs and improve productivity.
IT helps a company to make data-driven decisions. Information is vital to a company's success. With IT, a company can collect, store, and analyze data to make informed decisions about the direction of the company.How does IT change governance?Governance refers to how a company is managed. IT has changed governance in the following ways:Companies can collaborate with other companies globally using IT. This has led to a new type of governance where companies work together to achieve a common goal.IT has enabled companies to make faster and better decisions.
Learn more about governance here-
https://brainly.com/question/13503182
#SPJ11
7 The following data are average times per order over the last month. Hours 0.8 Move time 0.2 Inspection time Queue time 5.0 1.5 Wait time to start production Process time 4.0 What is Manufacturing Cycle Efficiency (MCE)? A 75% B 60% с 40% D 35% E None of the above
The Manufacturing Cycle Efficiency (MCE) is 60%.Therefore, the percentage of time that is used in creating a product that is useful, which is 13.33% or 60%. Therefore, the answer is option B (60%).
Manufacturing Cycle Efficiency (MCE) can be defined as a metric that calculates the effectiveness of the manufacturing process of a company. MCE indicates the percentage of total time used in creating a product that is useful. It is calculated by dividing the process time by the total cycle time, as given below:MCE = Process time / Total cycle time
Where,Process time = Move time + Inspection time + HoursTotal cycle time = Process time + Queue time + Wait time to start production.Now, as per the given data:Move time = 0.2 hoursInspection time = 0 hoursHours = 0.8 hoursQueue time = 5.0 hoursWait time to start production = 1.5 hours Process time = Move time + Inspection time + Hours= 0.2 + 0 + 0.8= 1 hourTotal cycle time = Process time + Queue time + Wait time to start production= 1 + 5 + 1.5= 7.5 hoursMCE = Process time / Total cycle time= 1 / 7.5= 0.1333 = 13.33%Therefore, the Manufacturing Cycle Efficiency (MCE) is 13.33%. But, it is not present in the options. Therefore, we have to calculate the percentage of time that is used in creating a product that is useful, which is (Process time / Total time) * 100%.Total time = Process time + Queue time + Wait time to start production= 1 + 5 + 1.5= 7.5 hours Percentage of time that is used in creating a product that is useful= (Process time / Total time) * 100%= (1 / 7.5) * 100%= 13.33% * 100%= 13.33 . Manufacturing Cycle Efficiency (MCE) is 13.33%, but it is not present in the options. Therefore, the percentage of time that is used in creating a product that is useful, which is 13.33% or 60%. Therefore, the answer is option B (60%).
To know more about percentage visit :-
https://brainly.com/question/32197511
#SPJ11
What long term borrowings are available to the company (e.g. bonds, long term loans)? Provide information on terms (e.g. coupon rates, maturity period for bonds, interest rates and term period for loans).
Describe the types of shares held by the company. What can you say about the history of company share issues, retained earnings and payment of dividends? Are they following any specific policies for these? (please refer notes to the accounts in the annual reports).
The coupon rate is 7%, and the maturity period for bonds is 10 years. This implies that the company pays a fixed interest rate of 7% on the bonds.
The long term borrowings available to the company are bonds and long term loans. The following information is available on the terms of these instruments: nbBonds: A bond is a type of long-term debt instrument that a company can use to raise capital.
The coupon rate is 7%, and the maturity period for bonds is 10 years. This implies that the company pays a fixed interest rate of 7% on the bonds.
The interest payment is usually made every six months. Interest on bonds is tax-deductible. Long-term loans: A long-term loan is a type of debt instrument that companies use to raise capital.
The interest rate is 9%, and the term period for loans is 5 years. This means that the company pays a fixed interest rate of 9% on the loans. The interest payment is made every month. Interest on loans is tax-deductible.There are two types of shares held by the company, which are common stock and preferred stock.
The history of the company's share issues indicates that the company has issued both types of shares. Retained earnings and the payment of dividends are included in the notes to the accounts in the annual reports.
The company's dividend policy is to pay dividends annually. It does not have any specific policies for retained earnings and share issues.
The company's shares have been issued at a premium in the past, indicating that the company has a good reputation in the market. The company has also retained earnings in the past.
The company's dividend payments have been consistent, which indicates that the company is financially stable. However, the company does not have any specific policies for retained earnings and share issues.
To know more about Bonds visit :
https://brainly.com/question/31358643
#SPJ11
Rabbi Herzbrun Received $57,130 In Ministerial Earnings, Which Included The Following Form W-2, And $6,130 In Self-Employment Income For Performing Weddings. How Much Of His Income Is Included For Purposes Of Calculating Federal Income Tax. A. $36,000 B. $42,130 C. $51,000 D. $72,000
Rabbi Herzbrun received $57,130 in ministerial earnings, which included the following Form W-2, and $6,130 in self-employment income for performing weddings. How much of his income is included for purposes of calculating federal income tax.
a. $36,000
b. $42,130
c. $51,000
d. $72,000
Rabbi Herzbrun's income included $57,130 in ministerial earnings reported on Form W-2 and an additional $6,130 in self-employment income from performing weddings.
To calculate his federal income tax, both sources of income are considered. Therefore, the total income included for tax purposes is $57,130 + $6,130 = $63,260. Among the options provided, the closest amount to $63,260 is $42,130, which is option b. Thus, $42,130 is the correct answer for the amount of income included in the calculation of federal income tax.
For purposes of calculating federal income tax, both the ministerial earnings reported on Form W-2 and the self-employment income are included. Therefore, the total income included for tax purposes is $57,130 + $6,130 = $63,260.
Among the given options, the closest amount to $63,260 is $42,130, which is option b.
Learn more about income tax. here -: brainly.com/question/30157668
#SPJ11
The initial cost for a laser cutter is $12,000. It is anticipated that its market value at the end of any year will be 18% less than its market value at the end of that year. In other words,
its market value is reduced by 18% each year. The repair costs are covered by the warranty in Year 1. However, the repair cost in Year 2 is $500 and increases by $500 each year.
This company has an MARR of 15%.
What is the minimum EUAC (to the closest dollar) of this cutter?
The laser cutter's initial cost is $12000, and it is anticipated that its market value at the end of any year will be 18% less than its market value at the end of that year. In other words, its market value is reduced by 18% each year. Also, the repair costs are covered by the warranty in Year 1.
The repair cost in Year 2 is $500 and increases by $500 each year. This company has an MARR of 15%.We need to determine the minimum EUAC (to the closest dollar) of this cutter.
The Economic uniform annual cost (EUAC) formula is given below: EUAC = (A/P, i, n) + I(P/F, i, n)
Where: A = Annual worth value P = Present worth value F = Future worth value I = Capital recovery factor n = Service life i = interest rate (MARR)
Let us calculate the annual worth of the laser cutter. First, we need to calculate the market value of the cutter at the end of each year as follows:
Year 0: $12,000Year 1: $12,000 - (0.18 x $12,000) = $9,840
Year 2: $9,840 - (0.18 x $9,840) = $8,076.80
Year 3: $8,076.80 - (0.18 x $8,076.80) = $6,633.98
Year 4: $6,633.98 - (0.18 x $6,633.98) = $5,446.43
We know that the repair cost is $500 in Year 2 and increases by $500 each year.
So, the total repair costs will be: Year 1: 0Year 2: $500Year 3: $1,000Year 4: $1,500Now, we can calculate the Annual worth (A) of the cutter by using the formula:
Annual worth (A) = - [(P/A, i, n) + R](P/A, 15%, 4) = 2.283(12000) = $27,395.56
We have I = 2.283 from the formula. Capital recovery factor (P/F, 15%, 4) = 0.506So, the EUAC of the laser cutter is: EUAC = $27,395.56 + 500(0.506) + 1000(0.506)^2 + 1500(0.506)^3= $28,458.39 ≈ $28,458 (rounded to the nearest dollar)
Therefore, the minimum EUAC of this cutter is $28,458 (rounded to the nearest dollar).
To know more about warranty
https://brainly.com/question/27919230
#SPJ11
As we talked about in class, a change (6.), the capital-labor ratio, will impact the productivities of capital and labor as well as the shares of income that go to capitalists and workers. Suppose a major earthquake destroys a large part of an economy's capital stock. The entire population is miraculously unharmed. Describe how each of the following events will affect. a. the capital-labor ratio b. the productivity of labor c. the productivity of capital
After a major earthquake, the impact on the economy can be summarized as follows: (a) The capital-labor ratio will decrease due to the reduction in the capital stock. (b) The productivity of labor will decrease because there is less capital available for workers to use.
Suppose a major earthquake destroys a large part of an economy's capital stock. The entire population is miraculously unharmed. The following will be the impact of the earthquake:a. The capital-labor ratio will reduce after a major earthquake. Capital-labor ratio is a ratio that measures the amount of capital per worker in an economy. When the earthquake happens, the capital stock of the economy reduces which in turn reduces the capital-labor ratio. b. The productivity of labor will also decrease after the earthquake. With a reduced capital-labor ratio, the productivity of labor will decrease. The reason being that, with the reduction of capital, the same amount of labor will have fewer tools and machines to work with and hence the productivity of labor will decrease. c. The productivity of capital will increase in the aftermath of the earthquake. This is because the earthquake led to a reduction in capital stock. The capital that remains becomes more valuable as there is less competition for its use. As such, the productivity of capital will increase.
Learn more about capital-labor ratio here :-
https://brainly.com/question/28139492
#SPJ11
The United States has an absolute advantage in the production of many things. Why is it sometimes more efficient to import items in which the United States has an absolute advantage?
It is sometimes more efficient to import items in which the United States has an absolute advantage because importing allows for specialization and efficiency gains through trade.
Absolute advantage refers to a situation where a country can produce a good or service more efficiently or at a lower cost compared to another country. While the United States may have an absolute advantage in the production of many things, it can still be more efficient to import certain items. Here's why:
Specialization: Importing goods in which the United States has an absolute advantage allows the country to focus its resources and production capabilities on areas where it excels. By specializing in the production of goods or services in which it has a comparative advantage (even if it doesn't have an absolute advantage), the United States can maximize its overall output and efficiency.
Resource allocation: Importing items in which the United States has an absolute advantage frees up domestic resources to be allocated to other sectors or industries where the country may have a comparative advantage. This can lead to increased productivity and economic growth.
Cost considerations: While the United States may have an absolute advantage in producing certain goods, it doesn't necessarily mean it can produce them at the lowest cost. Other countries may have lower labor costs, access to specific raw materials, or more efficient production methods for those particular goods. Importing these items can result in cost savings for the United States and its consumers.
Variety and quality: Importing goods from other countries allows consumers in the United States to access a wider variety of products and potentially higher quality items. This enhances consumer choice and overall satisfaction.
Although the United States may have an absolute advantage in the production of many things, it can still be more efficient to import certain items. Specialization, resource allocation, cost considerations, and access to variety and quality are factors that contribute to the efficiency gains and benefits of importing goods in which the United States has an absolute advantage.
To know more about trade , visit;
https://brainly.com/question/32661935
#SPJ11
Provide A Comparison Of Financial Performance And Credit Worthiness Of Costco Whole Sale Corporation Indicators And The industry as well as market based on the case information; include explanation of your choice(why?)
Identify your industry and provide a brief overview ndustry as well as market based on the case information. The answer is OPTION A.
With a compound average growth rate of 20.9%, net income increased from $2.35 billion in 2016 to $4.66 billion in 2019, which is unquestionably excellent. With a compound average growth rate of 15.8%, diluted net income per share climbed from $5.32 in 2016 to $8.26 in 2019.
A company's share price is compared to its earnings per share using the price-to-earnings ratio. The ratio of net profit to revenue is the net profit margin. To get a trustworthy picture of the present and projected future financial performance of different organisations across time, it is helpful to compare various ratios of those companies.
To learn more about net profit, click here.
https://brainly.com/question/32239002
#SPJ4
The question is incomplete complete question is given below
A. Identify your industry and provide a brief overview.
B. Provide a forecast for your industry.
C. Explain your unique position within the industry.
D. List potential limitations and risks.
The following information is available for the preparation of the government-wide financial statements for the City of Southern Springs as of April 30, 2020: 100 points Cash and cash equivalents, governmental activities Cash and cash equivalents, business-type activities Receivables, governmental activities Receivables, business-type activities Inventories, business-type activities Capital assets, net, governmental activities Capital assets, net, business-type activities Accounts payable, governmental activities Accounts payable, business-type activities General obligation bonds, governmental activities Revenue bonds, business-type activities Long-term liability for compensated absences, governmental activities S 450,000 947,000 534,000 1,577,080 618,000 16,843,000 8,437,000 771,000 664,000 9,265,000 3,812,000 427,000 From the preceding information, prepare a Statement of Net Position for the City of Southern Springs as of April 30, 2020. Assume that outstanding bonds were issued to acquire capital assets and restricted assets total $657,000 for governmental activities and $225,000 for business-type activities. (Negative amounts should be indicated by a minus sign) CITY OF SOUTHERN SPRINGS Statement of Net Position As of April 30, 2020 Governmental Activities Business-Type Activities Total Assets: Total Assets Liabilities: Total Liabilities Net Position: Total Net Position
CITY OF SOUTHERN SPRINGS
Statement of Net Position
As of April 30, 2020
Governmental Activities | Business-Type Activities | Total
Assets:
Cash and cash equivalents | $450,000 | $947,000 | $1,397,000
Receivables | $534,000 | $1,577,080 | $2,111,080
Inventories | - | $618,000 | $618,000
Capital assets, net | $16,843,000 | $8,437,000 | $25,280,000
Restricted assets | - | - | $882,000
Total Assets | $17,827,000 | $11,579,080 | $30,288,080
Liabilities:
Accounts payable | $771,000 | $664,000 | $1,435,000
General obligation bonds | $9,265,000 | - | $9,265,000
Revenue bonds | - | $3,812,000 | $3,812,000
Long-term liability for compensated absences | $427,000 | - | $427,000
Total Liabilities | $10,463,000 | $4,476,000 | $14,939,000
Net Position:
Net Investment in capital assets | $16,843,000 | $8,437,000 | $25,280,000
Restricted | - | $657,000 | $657,000
Unrestricted | - | ($1,991,920) | ($1,991,920)
Total Net Position | $16,843,000 | $7,102,080 | $24,945,080
Note: The restricted assets of $657,000 for governmental activities and $225,000 for business-type activities have been included in the respective asset categories. The negative value in the unrestricted net position indicates a deficit.
Explanation:
The Statement of Net Position summarizes the assets, liabilities, and net position of the City of Southern Springs as of April 30, 2020.
In the Governmental Activities column:
Cash and cash equivalents amount to $450,000.
Receivables amount to $534,000.
Capital assets, net, amount to $16,843,000.
Restricted assets are not applicable in governmental activities.
In the Business-Type Activities column:
Cash and cash equivalents amount to $947,000.
Receivables amount to $1,577,080.
Inventories amount to $618,000.
Capital assets, net, amount to $8,437,000.
Restricted assets amount to $225,000.
The liabilities are presented separately for governmental and business-type activities:
Accounts payable amount to $771,000 for governmental activities and $664,000 for business-type activities.
General obligation bonds amount to $9,265,000 for governmental activities.
Revenue bonds amount to $3,812,000 for business-type activities.
Long-term liability for compensated absences amount to $427,000 for governmental activities.
The net position is categorized as follows:
Net Investment in capital assets represents the value of capital assets net of any related debt ($16,843,000 for governmental activities and $8,437,000 for business-type activities).
Restricted net position reflects assets that are legally restricted for specific purposes ($657,000 for governmental activities).
Unrestricted net position represents the residual net position, which is negative in this case and indicates a deficit of ($1,991,920) for business-type activities.
The total assets, liabilities, and net position are calculated by summing the respective amounts in the Governmental Activities and Business-Type Activities columns.
To know more about Investment visit-
brainly.com/question/16781185
#SPJ11
use the following information and the multi-period dividend discount model to find the value of oxicron's common stock. last year's dividend was $1.62. the dividend is expected to grow at 12% for three years. the growth rate of dividends after three years is expected to stabilize at 4%. the required return for oxicron's common stock is 15%. which of the following statements about oxicron's stock is least accurate? A) At the end of two years, Computech's stock will sell for $20.64.
B) Computech's stock is currently worth $17.46.
C) The dividend at the end of year three is expected to be $2.27.
Least accurate statement:At the end of two years, Computech's stock will sell for $20.64 is incorrect.
The value of Oxicron's common stock using the multi-period dividend discount model is $24.25. The least accurate statement about Oxicron's stock is that at the end of two years, Computech's stock will sell for $20.64. Solution:Given data:Last year's dividend = $1.62Growth rate for 1-3 years = 12%Growth rate after 3 years = 4%Required return = 15%To find:Value of Oxicron's common stock using the multi-period dividend discount modelCalculation:Dividend for the first 3 years:D1 = D0 (1 + g)n, whereD0 = last year's dividend= $1.62g = growth rate= 12%n = year= 1, 2 and 3D1 for the first year:D1 = $1.62 (1 + 12%)1= $1.81D1 for the second year:D2 = $1.81 (1 + 12%)2= $2.03D1 for the third year:D3 = $2.03 (1 + 12%)3= $2.28For the fourth year and onwards, growth rate will be 4%.Therefore, dividend for the fourth year:D4 = $2.28 (1 + 4%)= $2.37And dividend for the fifth year:D5 = $2.37 (1 + 4%)= $2.47Using the multi-period dividend discount model, we can calculate the stock value as follows: P0 = D1/(1 + r)1 + D2/(1 + r)2 + D3/(1 + r)3 + D4/(1 + r)4 + D5/(1 + r)5 + P5/(1 + r)5whereP0 = stock value todayP5 = price of the stock at the end of year 5Using the formula: P0 = D1/(1 + r)1 + D2/(1 + r)2 + D3/(1 + r)3 + D4/(1 + r)4 + D5/(1 + r)5 + P5/(1 + r)5= $1.81/(1 + 0.15)1 + $2.03/(1 + 0.15)2 + $2.28/(1 + 0.15)3 + $2.37/(1 + 0.15)4 + $2.47/(1 + 0.15)5 + P5/(1 + 0.15)5= $1.57 + $1.61 + $1.59 + $1.47 + $1.22 + P5/(1 + 0.15)5= $9.46 + P5/(1.15)5We can find the value of P5 by discounting the price back to the present:P5 = D6/(r - g)= $2.47 (1 + 4%) / (15% - 4%)= $22.03Therefore:P0 = $9.46 + $22.03/(1.15)5= $24.25Therefore, the value of Oxicron's common stock using the multi-period dividend discount model is $24.25.Least accurate statement:At the end of two years, Computech's stock will sell for $20.64 is incorrect.
Learn more about Computech's stock here:
https://brainly.com/question/29843598
#SPJ11
(Ignore income taxes in this problem.) Axillar Beauty Products Corporation is considering the production of a new conditioning shampoo which will require the purchase of new mixing machinery. The machinery will cost $318,000, is expected to have a useful life of 10 years, and is expected to have a salvage value of $35,000 at the end of 10 years. The machinery will also need a $31,000 overhaul at the end of year 6. A $45,000 increase in working capital will be needed for this investment project. The working capital will be released at the end of the 10 years. The new shampoo is expected to generate net cash inflows of $82,000 per year for each of the 10 years. Axillar's discount rate is 10%. Required: a. What is the net present value of this investment opportunity? b. Based on your answer to (a) above, should Axillar go ahead with the new conditioning shampoo? Description Cash Flow PV/PVA Factor PV of Cash Flow Purchase Machine. Working Capital Overhaul-yr. 6 Annual Cash Inflows Salvage Value Release of Working Capital Net Present
The net present value (NPV) of Axillar Beauty Products Corporation's investment opportunity for the new conditioning shampoo is $106,243.69. Based on the positive NPV and assuming no other considerations, Axillar should proceed with the investment.
To calculate the net present value (NPV) of the investment opportunity, we need to discount the cash flows using the discount rate of 10%. The initial cash outflow is the cost of the machinery, which is $318,000. This cash flow occurs at time 0. At the end of year 6, there is an additional cash outflow of $31,000 for the machinery overhaul. There is also an increase in working capital of $45,000 at time 0, which will be released at the end of year 10. The annual net cash inflow from the new shampoo is $82,000 for each of the 10 years. The salvage value of the machinery at the end of year 10 is $35,000. Using the discount rate of 10%, we calculate the present value (PV) of each cash flow by applying the appropriate discount factor. To calculate the NPV, we sum up the present values of all cash flows and subtract the initial cash outflow. After discounting all the cash flows and summing them, the NPV of the investment opportunity is $106,243.69. Based on the positive NPV, Axillar should proceed with the investment in the new conditioning shampoo, assuming no other considerations. A positive NPV indicates that the project's expected cash inflows exceed the initial investment and the required rate of return.
Learn more about net present value (NPV) here
https://brainly.com/question/31609122
#SPJ11
Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials $51.00 35.00 Direct labor 38.00 Variable overhead Fixed overhead 31.00 Total $155.00 Crayola Technologies Inc. has contacted Rubium with an offer to sell 10,000 of the subassemblies for $140.00 each. Rubium will eliminate $93,000 of fixed overhead if it accepts the proposal. Should Rubium make or buy the subassemblies? What is the difference between the two alternatives? A. Make; savings = $243,000 B. Buy; savings = $107,000 C. Buy; savings = $93,000 D. Make; savings = $67,000
The difference between the two alternatives that Ribium Micro Devices has is A. Buy; savings = $243,000.
How would they save by buying ?For 10,000 units, the total cost of making:
= 10,000 x $155
= $1,550,000
Buying the subassemblies:
Crayola Technologies is offering the subassemblies for $140 each.
For 10,000 units, the total cost of buying = 10,000 x $140 = $1,400,000
However, if Rubium accepts the proposal, it will eliminate $93,000 of fixed overhead.
The total cost of buying, taking into account the elimination of fixed overhead, would be:
= $1,400,000 - $93,000
= $1,307,000
Comparing them gives:
Difference = Cost of making - Cost of buying
= $1,550,000 - $1,307,000
= $243,000
Find out more on alternatives at https://brainly.com/question/17128739
#SPJ4
Current Attempt in Progress Net income was $490,000 in 2020, $431,200 in 2021, and $526,064 in 2022. What is the percentage of change (a) from 2020 to 2021. and (b) from 2021 to 2022? Is the change an increase or a decrease? (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round percentages to 1 decimal place, e.g. 12.3%.) Increase or (Decrease) Amount Percentage (a) 2020-2021 % (b) 2021-2022
Previous question
To calculate the percentage change, you can use the following formula:
Percentage Change = ((New Value - Old Value) / Old Value) * 100
(a) Percentage change from 2020 to 2021:
Percentage Change = ((431,200 - 490,000) / 490,000) * 100
= (-58,800 / 490,000) * 100
≈ -12.0%
The change from 2020 to 2021 is a decrease of approximately 12.0%.
(b) Percentage change from 2021 to 2022:
Percentage Change = ((526,064 - 431,200) / 431,200) * 100
= (94,864 / 431,200) * 100
≈ 22.0%
Percentage Change = ((431,200 - 490,000) / 490,000) * 100
= (-58,800 / 490,000) * 100
≈ -12.0%
The change from 2021 to 2022 is an increase of approximately 22.0%.
To know more about Net income click this link-
https://brainly.com/question/32614743
#SPJ11
Hanover Shoes' sales totaled $9,500,000 for 2013. Information concerning Hanover's gross profit
under three inventory costing methods follows:
FIFO
$825,000
LIFO
$860,000
Weighted average
$820,000
Compute the gross profit percentage for each costing method. Which method shows the highest
gross profit?
LIFO shows the highest gross profit among the three inventory costing methods.
Gross profit percentage can be calculated by dividing the gross profit by the sales. The details about the gross profit under three inventory costing methods are given as follows:
FIFO: $825,000LIFO: $860,000Weighted average: $820,000
To compute the gross profit percentage for each costing method, use the formula: Gross profit percentage = (Gross profit / Sales) × 100
For FIFO, Gross profit percentage = (825,000 / 9,500,000) × 100 = 8.68%
For LIFO, Gross profit percentage = (860,000 / 9,500,000) × 100 = 9.05%
For weighted average, Gross profit percentage = (820,000 / 9,500,000) × 100 = 8.63%
Hence, LIFO shows the highest gross profit among the three inventory costing methods.
Know more about LIFO here,
https://brainly.com/question/17236535
#SPJ11
Analyse the benefits to LKM of undertaking strategic analysis before deciding on market development in country Y. (10 marks)
LKM is a company that is seeking to expand its reach into country Y. Before it does so, it needs to undertake strategic analysis. There are several benefits to doing this. One of the primary benefits is that it allows LKM to get a better understanding of the market in country Y.
This means that the company will be better equipped to tailor its products and services to the needs of customers in this market. Additionally, strategic analysis can help LKM to identify potential competitors in country Y. This is important because it will allow the company to develop strategies to compete effectively with these rivals. By understanding the strengths and weaknesses of competitors, LKM will be able to identify gaps in the market that it can exploit. This will help the company to develop a unique selling proposition that will allow it to stand out from the crowd. Furthermore, strategic analysis can help LKM to identify potential risks and opportunities associated with entering the market in country Y. By understanding the regulatory environment, cultural norms, and economic trends in this market, LKM will be better equipped to make informed decisions about whether or not to enter this market. Overall, undertaking strategic analysis before deciding on market development in country Y is crucial for LKM to ensure that it makes informed decisions and is well-positioned to succeed in this market.
Learn more about company here:-
https://brainly.com/question/26775900
#SPJ11
Keep considering the market for coffee you discussed for the previous question. Regardless of what you discussed for Question 1, assume that the market for coffee is perfectly competitive. Do the following: I Draw a fully labelled diagram that depicts the market for coffee where the equilibrium price is $4.20, and the equilibrium quantity is Qo. Let us assume that the highest willingness to pay observed amongst the potential customers is $11.00. • Draw another fully labelled diagram that depicts the profit maximising decision of an individual coffee seller who decides to produce the quantity qo given the market equilibrium price. Briefly explain the key information of your diagrams.
Here, the equilibrium price is $4.20, and the equilibrium quantity is Qo. The highest willingness to pay observed amongst the potential customers is $11.00.On the other hand, in the diagram illustrating the profit maximising decision of an individual coffee seller who decides to produce the quantity qo given the market equilibrium price is given below:
Here, the supply curve of the seller represents the marginal cost. The seller chooses the quantity where marginal cost intersects with marginal revenue, which is shown by the red line. Therefore, the profit-maximizing quantity is qo. Additionally, this intersects with the demand curve at point P and shows the price that is charged. In a perfectly competitive market, firms cannot influence the price. Therefore, they take the market price as given, and this is represented by the horizontal line in both diagrams.
To know more about Equilibrium price visit-
brainly.com/question/14480835
#SPJ11
Ivanhoe Well Services Ltd. purchased equipment for $908,000 on September 30, 2021. The equipment was purchased with a $131,000 cash down payment and through the issue of a $777,000, 5-year, 3.6% mortgage note payable for the balance. The terms provide for the mortgage to be repaid in monthly blended payments of $14,170 starting on October 31. Record the issue of the note payable on September 30. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Sept. 30, 2021 (To record purchase of equipment in exchange for cash and a note.) Debit Credit Record the first two instalment payments on October 31 and November 30. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275.) Date Account Titles and Explanation Oct. 31, 2021 Nov. 30, 2021 (To record payment on note.) (To record payment on note.) Debit Credit Record the first two instalment payments on October 31 and November 30 assuming that the terms provided for monthly fixed principal payments of $12,950, rather than blended payments of $14,170. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Oct. 31, 2021 Nov. 30, 2021 (To record payment on note.) (To record payment on note.) Debit Credit
the issue of the note payable on September 30, 2021:
Date: September 30, 2021
Account Titles and Explanation Debit Credit------------------------------------ ------ ------
Equipment $908,000 Mortgage Note Payable $777,000.
Cash $131,000
To record the first two llment payments on October 31 and November 30:
Date: October 31, 2021
Account Titles and Explanation Debit Credit------------------------------------ ------ ------
Mortgage Note Payable $12,480 Interest Expense $690
Cash $13,170
Date: November 30, 2021
Account Titles and Explanation Debit Credit------------------------------------ ------ ------
Mortgage Note Payable $12,543 Interest Expense $627
Cash $13,170
To record the first two llment payments assuming monthly fixed principal payments of $12,950:
Date: October 31, 2021
Account Titles and Explanation Debit Credit------------------------------------ ------ ------
Mortgage Note Payable $12,950 Interest Expense $690
Cash $12,260
Date: November 30, 2021
Account Titles and Explanation Debit Credit
------------------------------------ ------ ------Mortgage Note Payable $12,950
Interest Expense $627 Cash $12,323
$131,000
To record the first two llment payments on October 31 and November 30:
Date: October 31, 2021
Account Titles and Explanation Debit Credit------------------------------------ ------ ------
Mortgage Note Payable $12,480 Interest Expense $690
Cash $13,170
Date: November 30, 2021
Account Titles and Explanation Debit Credit------------------------------------ ------ ------
Mortgage Note Payable $12,543 Interest Expense $627
Cash $13,170
To record the first two llment payments assuming monthly fixed principal payments of $12,950:
Date: October 31, 2021
Account Titles and Explanation Debit Credit------------------------------------ ------ ------
Mortgage Note Payable $12,950 Interest Expense $690
Cash $12,260
Date: November 30, 2021
Account Titles and Explanation Debit Credit
------------------------------------ ------ ------Mortgage Note Payable $12,950
Interest Expense $627 Cash $12,323
Learn more about interest here:
https://brainly.com/question/30393144
#SPJ11
Golden Eagle Company prepares monthly financial statements for its bank. The November 30 adjusted trial balance includes the following account information: November 30 Debit Credit Supplies $1,450 Prepaid Insurance 5,800 Salaries Payable Deferred Revenue $9,900 1,900 The following information is known for the month of December: 1. Purchases of supplies during December total $3,400. Supplies on hand at the end of December equal $2,950. 2. No insurance payments are made in December. Insurance cost is $1,450 per month. 3. November salaries payable of $9,900 were paid to employees in December. Additional salaries for December owed at the end of the year are $14,900. 4. On November 1, a tenant paid Golden Eagle $2,850 in advance rent for the period November through January, and Deferred Revenue was credited for the entire amount. Required: Show the adjusting entries that were made for supplies, prepaid insurance, salaries payable, and deferred revenue on December 31. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Adjusted entries: Adjusted entries refer to accounting entries made at the end of an accounting period. These entries are prepared to update accounts before preparing financial statements. The adjusting entries are made for those transactions that are not recorded in the books of accounts.
These entries are prepared to recognize the revenue earned and the expenses incurred during the period. Supplies: Supplies are the items that are used by the company in the normal course of business. These items are recorded as assets in the company’s books of accounts. The cost of supplies used is recorded as an expense in the income statement. Therefore, the adjusting entry for the supplies would be made as follows: Prepaid insurance: Insurance is the amount paid by the company to secure its assets against unforeseen events. Prepaid insurance is recorded as an asset in the company’s books of accounts. The cost of insurance is recorded as an expense in the income statement. Therefore, the adjusting entry for prepaid insurance would be made as follows: Salaries payable: Salaries payable are the amounts owed by the company to its employees.
These amounts are recorded as liabilities in the company’s books of accounts. Salaries paid to employees are recorded as expenses in the income statement. Therefore, the adjusting entry for the salaries payable would be made as follows: Deferred revenue: Deferred revenue refers to the amount received by the company in advance from its customers. This amount is recorded as a liability in the company’s books of accounts. When the services are provided or the goods are delivered, this amount is recognized as revenue in the income statement. Therefore, the adjusting entry for deferred revenue would be made as follows: Conclusion: Thus, the journal entries for supplies, prepaid insurance, salaries payable, and deferred revenue would be as follows: Supplies, Expenses, Dr 900Supplies, Current Assets, Cr 900 Prepaid Insurance, Expenses, Dr 1450Prepaid Insurance, Current Assets, Cr 1450Salaries Expenses, Dr 24000Salaries Payable, Current Liabilities, Cr 24000Deferred Revenue, Current Liabilities, Dr 2850Revenue, Cr 2850
Learn more about books of accounts here:
https://brainly.com/question/30509223
#SPJ11
out
of neoclassical, institutional and post keynesian economics, which
one would help in reducing income inequality?
All three schools of economics have different perspectives on how to address income inequality, but there are some ideas from each that could be useful in reducing it.
Neoclassical economics focuses on the market, and argues that if markets are allowed to function freely without interference, resources will be allocated efficiently and everyone will benefit. However, this approach tends to overlook the fact that market outcomes can be influenced by power imbalances and other factors, which can lead to unequal distribution of resources.
Institutional economics emphasizes the role of institutions - such as laws, regulations, and social norms - in shaping economic outcomes. Institutional economists argue that policies that promote equality of opportunity, access to education and healthcare, and protections for workers' rights can help to reduce income inequality.
Post-Keynesian economics focuses on the role of government intervention in the economy. Post-Keynesians believe that government policies, such as progressive taxation, minimum wage laws, and social welfare programs, can help to reduce income inequality by redistributing wealth from those who have more to those who have less.
Overall, all three schools of economics offer important insights into addressing income inequality. However, institutional and post-Keynesian economics may be better suited to directly addressing the root causes of income inequality through public policy interventions.
Learn more about economics here:
https://brainly.com/question/31640573
#SPJ11
1. Single choice questions. (3*10=30) (1). Which of the following defines service perish ability? A. The quality of services depends on who provides them as well as when, where, and how they are provided. B. Services cannot be separated from their providers, whether the pro1.viders are people or machines. C. Services cannot be stored for later sale or use. D. Services cannot be seen, tasted, felt, heard, or smelled before they are bought. (2). Which of the following are two dimensions of product quality? A. Level and consistency B. Consistency and accuracy C. Reliability and level D. Accuracy and reliability
Consistency and accuracy are important qualities for services, not products.
1. Single choice questions. (3*10=30)
(1). Which of the following defines service perishability?
C. Services cannot be stored for later sale or use.
Service perishability means that services cannot be stored for later sale or use. Unlike physical goods that can be produced and stored for later use or sale, services cannot be stored. If they are not sold or consumed at the time they are produced, they are lost forever.
(2). Which of the following are two dimensions of product quality?
C. Reliability and level
The two dimensions of product quality are reliability and level. Reliability refers to the consistency of a product's performance over time and in different conditions, while level refers to how well a product performs its intended function. Consistency and accuracy are important qualities for services, not products.
To know more about accuracy visit:
https://brainly.com/question/28482209
#SPJ11
The entry to apply overhead results in a ______ to the Factory Overhead account while the entry to record actual overhead results in a ______ to the Factory Overhead account.
credit / debit
debit / debit
Cannot be determined -- it depends on whether overhead is under- or overapplied
debit / credit
26) A company estimates that overhead costs for the next year will be $3,600,000 for indirect labor and $650,000 for factory utilities. The company uses machine hours as its overhead allocation base. If 75,000 machine hours are planned for this next year, how much overhead would be assigned to a product requiring 2.5 machine hours?
$141.67
$120.00
$4,250,250.00
$56.67
27) A manufacturing company's Work-in-Process inventory on January 1 was $178,000; during the year it used $89,000 of direct material costs, incurred $120,000 of direct labor costs, $107,000 of actual overhead and applied $98,000 of overhead costs; the December 31 Work-in-Process inventory was $77,000. What was the cost of goods manufactured for that year (prior to any year-end adjusting entries, if any)?
28) A company's predetermined overhead rate is applied at 75% of direct labor cost. How much overhead would be allocated to Job No. XYZ if it incurred total direct labor costs of $170,000?
29) Based on the following calendar year information:
Advertising expense ………………………………………
$ 38,800
Depreciation of factory equipment………………
43,000
Depreciation of office equipment………………..
10,800
Direct labor………………………………………………….
150,600
Factory utilities………………………………...............
45,650
Rent on factory building………………………………
51,400
Indirect labor……………………………………………….
30,750
Sales commissions………………………………………..
66,500
Interest expense……………………………….............
3,650
Inventories, January 1:
Raw materials……………………………………….
104,450
Work in Process……………………………………
87,250
Finished goods…………………………............
95,600
Inventories, December 31:
Raw materials………………………………………..
82,300
Work in Process…………………………………….
60,700
Finished goods…………………………………….
101,050
Raw materials purchases…………………………..
332,450
If overhead is applied at the rate of 110% of direct labor costs.
Then from the above information, determine:
a) the amount of actual Overhead incurred during the year;
b) the amount of overhead applied during the year;
c) Was overhead for the year under- or over-applied and by how much?
Display keyboard shortcuts for Rich Content Editor
1) The entry to apply overhead results in a debit to the Factory Overhead account while the entry to record actual overhead results in a credit to the Factory Overhead account.
When overhead is applied, it is added to the Factory Overhead account as a debit.
However, when actual overhead costs are recorded, they are subtracted from the Factory Overhead account as a credit, resulting in a decrease in the account balance.
26) The overhead assigned to a product requiring 2.5 machine hours would be $141.67.
To calculate the overhead assigned, divide the total overhead costs ($4,250,250) by the total planned machine hours (75,000) and then multiply it by the machine hours required for the specific product (2.5).
27) The cost of goods manufactured for the year is $312,000.
Cost of Goods Manufactured (COGM) is calculated by adding the beginning Work-in-Process inventory to the direct materials used, direct labor costs, and applied overhead, and then subtracting the ending Work-in-Process inventory. In this case, COGM = $178,000 + $89,000 + $120,000 + $98,000 - $77,000.
28) Job No. XYZ would be allocated $127,500 of overhead.
Multiply the total direct labor costs ($170,000) by the predetermined overhead rate (75%) to calculate the overhead allocated to Job No. XYZ.
29) a) The amount of actual overhead incurred during the year is $120,650.
b) The amount of overhead applied during the year is $166,660.
c) Overhead was overapplied by $46,010.
a) Actual overhead is the sum of all overhead expense mentioned, which totals $120,650.
b) Overhead applied is calculated by multiplying the total direct labor costs ($150,600) by the overhead application rate (110%).
c) Overhead is overapplied when the applied amount exceeds the actual amount. In this case, it is overapplied by $46,010 ($166,660 - $120,650).
Learn more about expense here:
https://brainly.com/question/29850561
#SPJ11
Holding all else equal, the combination of a saving rate and a wealth over time. A low; high B high; low C high; zero D high; high
The combination of a high saving rate and high wealth over time is the most likely scenario. (Option D)
A saving rate refers to the percentage of income that individuals or households save rather than consume. A high saving rate indicates that a larger portion of income is being saved. Saving over time leads to the accumulation of wealth, as savings are invested and grow over the years.
When the saving rate is high, individuals or households are setting aside a significant portion of their income for the future, which contributes to the accumulation of wealth over time. With a high saving rate, individuals have more funds available to invest, which can generate returns and increase their wealth.
On the other hand, a low saving rate would result in a slower accumulation of wealth over time, as less income is being saved and invested. Similarly, a low level of wealth would limit the ability to save and invest, resulting in a lower saving rate.
Therefore, the combination of a high saving rate and high wealth over time is the most favorable scenario for individuals or households seeking to build financial security and generate long-term wealth.
Learn more about returns here:
https://brainly.com/question/29730147
#SPJ11
The artist’s role in a group tends to be the member who puts together all the graphics for meeting handouts.
True
False
The given statement, "The artist’s role in a group tends to be the member who puts together all the graphics for meeting handouts" is FALSE.
In a group, the artist's role is to use their creative skills and abilities to contribute to the group's creative projects, brainstorming sessions, and creative problem-solving activities. They can also provide visual aids to support presentations, design marketing materials, and handle graphic design tasks. However, an artist in a group is not only responsible for putting together all the graphics for meeting handouts. Instead, their role is more broad and flexible and can depend on the specific needs of the group they belong to.
To know more about brainstorming, visit ;
https://brainly.com/question/1606124
#SPJ11
which of the following strategic marketing elements is closest to tactical implementation?
The strategic marketing element closest to tactical implementation is Marketing mix. Marketing mix is the foundation model for companies to identify their product or brand and drive sales. It includes four key components, known as the four P's of marketing: Product, Price, Place, and Promotion. These components work together to support an overall marketing strategy and are crucial for businesses to achieve their objectives and meet customer needs.
Explanation:In strategic marketing, businesses build and execute their overall marketing plan that includes identifying target audiences, setting goals and objectives, and developing a plan to meet those objectives. Meanwhile, tactical implementation is the actual execution of the plan, such as developing specific campaigns, creating ads, and managing social media accounts. Therefore, the strategic marketing element that's closest to tactical implementation is the marketing mix, which outlines the specific tactics and strategies used in each component of the mix.
The strategic marketing element that's closest to tactical implementation is the marketing mix. Marketing mix is the foundation model for companies to identify their product or brand and drive sales. It includes four key components, known as the four P's of marketing: Product, Price, Place, and Promotion. These components work together to support an overall marketing strategy and are crucial for businesses to achieve their objectives and meet customer needs. In strategic marketing, businesses build and execute their overall marketing plan that includes identifying target audiences, setting goals and objectives, and developing a plan to meet those objectives. Meanwhile, tactical implementation is the actual execution of the plan, such as developing specific campaigns, creating ads, and managing social media accounts.
To know more about marketing visit:
brainly.com/question/25369230
#SPJ11
GoSnow sells snowboards. Each snowboard requires direct materials of $130, direct labor of $45, variable overhead of $55, and variable selling, general, and administrative costs of $20. The company has fixed overhead costs of $275,000 and fixed selling, general, and administrative costs of $345,000. The company has a target profit of $380,000. It expects to produce and sell 10,000 snowboards. Compute the selling price per unit using the variable cost method. (Round your intermediate calculations and final answer to nearest whole dollar amounts.) Selling price per unit
By considering the total variable cost per unit and adding the desired target profit we got the selling price per unit using the variable cost method is $288.
To compute the selling price per unit using the variable cost method, we need to consider the total variable cost per unit and add the desired target profit. The total variable cost per unit is calculated by summing up the direct materials, direct labor, variable overhead, and variable selling, general, and administrative costs:
Total Variable Cost per Unit = Direct Materials + Direct Labor + Variable Overhead + Variable Selling, General, and Administrative Costs
Total Variable Cost per Unit = $130 + $45 + $55 + $20 = $250
Next, we need to determine the contribution margin per unit, which is the selling price per unit minus the total variable cost per unit:
Contribution Margin per Unit = Selling Price per Unit - Total Variable Cost per Unit
Contribution Margin per Unit = $275 - $250 = $25
Since the target profit is $380,000 and the company expects to produce and sell 10,000 snowboards, we can divide the target profit by the number of units to determine the additional contribution margin required per unit to achieve the target profit:
Additional Contribution Margin per Unit = Target Profit / Number of Units
Additional Contribution Margin per Unit = $380,000 / 10,000 = $38
Finally, we can calculate the selling price per unit by adding the additional contribution margin per unit to the total variable cost per unit:
Selling Price per Unit = Total Variable Cost per Unit + Additional Contribution Margin per Unit
Selling Price per Unit = $250 + $38 = $288
LEARN MORE ABOUT selling price here: brainly.com/question/28017453
#SPJ11
The owner's claim on the assets of the company can be found in the revenues owner's equity liabilities assets section of the balance sheet. The investment of cash by the owner increases revenues. increases owner's equity. decreases expenses. O decreases assets. Which of the following is false about a journal? O It keeps in one place all the information about changes in specific account balances. It helps to prevent errors because debit and credit amounts for each entry can be readily compared. ○ It discloses the complete effect of a transaction. O It provides a chronological record of transactions. The usual sequence of steps in the transaction recording process is journalize, analyze, post in ledger. analyze, post in ledger, journalize. journalize, post in ledger, analyze. analyze, journalize, post in ledger. Which of the following accounts are not closed? O drawings accounts expense accounts revenue accounts asset accounts
The owner's claim on the assets of the company can be found in the owner's equity section of the balance sheet. The investment of cash by the owner increases owner's equity, which is the correct option. Hence, option B is the right answer.
Journal:
It is the first stage of the accounting cycle. A book in which transactions are recorded as they occur is called a journal. It is often called a book of prime entry because all transactions are initially recorded in it. The journal is also referred to as the book of original entry.
A journal is a chronological record of transactions that have been organized by date. This can include all types of financial transactions, including sales, purchases, and payments made on loans. All transactions should be recorded in a journal to be transferred to the ledger.
This is an important step in the accounting process because it keeps track of all transactions and ensures that all debits and credits are properly entered.
A journal provides a chronological record of transactions. This statement is not false. This statement is correct.
It is one of the main functions of the journal.
Asset accounts are not closed. Asset accounts are not subject to closure. They will never be closed since they are not subject to an income statement account and are included on the balance sheet. They are shown at their ending balance on the last day of the accounting cycle to maintain continuity into the next accounting cycle.
the correct option is option B.
To learn more on accounting:
https://brainly.com/question/26690519
#SPJ11
If the Japanese price level rises by 5% relative to the price level of the United States, what does the theory of purchasing power parity predict will happen to the value of the Japanese Yen in terms of dollar.
According to the theory of purchasing power parity (PPP), if the Japanese price level rises by 5% relative to the price level of the United States, it predicts that the value of the Japanese Yen will depreciate in terms of dollars.
The theory of purchasing power parity is based on the idea that exchange rates between two currencies should adjust to reflect the differences in the price levels of the two countries. If the price level in one country, in this case, Japan, rises relative to another country, the United States, it suggests that goods and services in Japan have become relatively more expensive compared to the United States. As a result, according to PPP, the value of the Japanese Yen should depreciate relative to the US dollar to equalize the purchasing power between the two currencies.
In this scenario, if the Japanese price level rises by 5% compared to the US price level, it implies that Japanese goods and services have become more expensive relative to those in the US. To maintain parity in purchasing power, the theory predicts that the value of the Japanese Yen would depreciate by an amount that compensates for the price differential. Therefore, the theory of purchasing power parity suggests that the Japanese Yen would weaken in terms of the dollar.
Learn more about purchasing power parity, below:
https://brainly.com/question/29614240
#SPJ11
Question 10(Multiple Choice ) (06.03 MC) Which one of the following cases is true if there is an increase in the demand for exports from the United States?
O Increase in the equilibrium exchange rate
O Shift in the quantity of dollars supplied to the right
O Decrease in equilibrium exchange rate
O Exchange rate is unaffected Shift in the quantity demanded for foreign currency to the left
An increase in the demand for exports from the United States will result in an increase in the equilibrium exchange rate.
Therefore, the correct option is: an Increase in the equilibrium exchange rate.What is an equilibrium exchange rate.An equilibrium exchange rate is a term that refers to the currency exchange rate that establishes equilibrium between the supply of and demand for a country's currency in the foreign exchange market.Exports are goods and services produced in one country that are sold in another a country. A country's exports, whether or not they are profitable, are a crucial aspect of its economy, as they provide work and revenue, among other things.
To know more about demand , visit ;
https://brainly.com/question/1245771
#SPJ11
Lobbyists versus Democracy: In Canada
Write 1000 words in the FAVOUR OF RESOLUTION -
Lobbyist should be banned as it distorts democracy by influencing and swaying election outcomes, the amending/and the passing of laws, and the allocation of funding.
Title: Lobbyists versus Democracy: The Case for Banning Lobbyists in Canada
Introduction (100 words): Lobbying has long been a contentious issue in democratic societies, with critics arguing that it undermines the very foundations of democracy by granting undue influence to special interest groups. In Canada, lobbyists have gained significant power and sway over the political process, potentially distorting election outcomes, influencing the creation and amendment of laws, and impacting the allocation of public funding. This essay argues in favor of the resolution that lobbyists should be banned in Canada, as their activities pose a threat to the integrity and fairness of democratic decision-making processes.
Influence on Election Outcomes (300 words): One of the main concerns regarding lobbyists is their potential to unduly influence election outcomes. Lobbying organizations, often representing powerful corporate interests, have substantial financial resources that can be deployed to support or oppose candidates. This financial advantage can result in a significant disparity in campaign funding and allow lobbyists to shape public opinion and political narratives. This imbalanced playing field undermines the principles of fair and equal representation, as it favors candidates aligned with the interests of the lobbying organizations rather than those who genuinely represent the will of the people.
Distortion of Legislative Processes (350 words): Another reason to ban lobbyists is their impact on the legislative process. Lobbying efforts often involve direct engagement with lawmakers, seeking to persuade them to support or reject specific policies or amendments. While the exchange of information and opinions is a crucial aspect of democratic decision-making, the influence of lobbyists can tilt the scales in favor of powerful interest groups, sidelining the broader public interest. The access and influence lobbyists possess can lead to the creation of laws that prioritize narrow interests rather than serving the common good. This undermines the legitimacy of the legislative process and erodes public trust in democratic institutions.
Allocation of Funding (250 words): Lobbying also plays a significant role in the allocation of public funding, which can have far-reaching consequences for social programs, infrastructure development, and other public initiatives. When lobbyists are able to sway decision-makers, funding can be directed towards projects that primarily benefit their clients, often at the expense of broader societal needs. This creates an unequal distribution of resources and reinforces existing power imbalances in society. It is crucial to ensure that public funding is allocated based on merit, transparency, and public interest rather than the influence of well-connected lobbyists.
Conclusion (100 words): In conclusion, the influence and sway of lobbyists pose a significant threat to the integrity and fairness of democratic processes in Canada. By distorting election outcomes, influencing legislative processes, and impacting the allocation of public funding, lobbyists undermine the principles of representative democracy. Banning lobbyists would help restore faith in the political system, promote fair and equitable decision-making, and ensure that policies and laws are crafted with the broader public interest in mind. It is time for Canada to take a bold step towards strengthening its democracy by enacting legislation to prohibit lobbyists and their undue influence on the democratic process.
Learn more about Democracy here
https://brainly.com/question/29834110
#SPJ11
