The break-even point for Feather Friends, Incorporated is 16,667 units, the margin of safety is 8,333 units, the degree of operating leverage is 3, and the operating income is $100,000.
1. Break-even point: The break-even point is the point at which total revenue equals total costs. It can be calculated by dividing the fixed expenses by the contribution margin per unit (selling price - variable expenses). In this case, the break-even point is:
Break-even point = $200,000 / ($20 - $8) = $200,000 / $12 = 16,667 units
2. Margin of safety: The margin of safety is the difference between the actual sales and the break-even point. It can be calculated by subtracting the break-even point from the actual sales. In this case, the margin of safety is:
Margin of safety = Actual sales - Break-even point = 25,000 units - 16,667 units = 8,333 units
3. Degree of operating leverage: The degree of operating leverage is a measure of how sensitive the operating income is to changes in sales. It can be calculated by dividing the contribution margin by the operating income. In this case, the degree of operating leverage is:
Degree of operating leverage = Contribution margin / Operating income = ($12 x 25,000 units) / ($12 x 25,000 units - $200,000) = $300,000 / $100,000 = 3
4. Operating income: The operating income is the difference between the total revenue and the total expenses. It can be calculated by subtracting the total expenses from the total revenue. In this case, the operating income is:
Operating income = Total revenue - Total expenses = ($20 x 25,000 units) - ($8 x 25,000 units + $200,000) = $500,000 - $400,000 = $100,000
Therefore, the break-even point, margin of safety, degree pf operating leverage and the operating income for Feather Friends Incorporated is 16,667 units, 8,333 units, 3, and $100,000 respectively.
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Create an Arena model/simulation to create the set of 2,000 observations with a Uniform distribution between 0 and 100, and then use Input Analyzer to assess whether or not the uniform (0,100) distribution is a good fit of the data.
You can copy and paste the results as screenshot from Input Analyzer to excel. Then, you should comment on the results and the fit.
To create an Arena model/simulation with a Uniform distribution between 0 and 100, you can follow these steps:
1. Open Arena and create a new model.
2. Add a "Create" module and set the "Interarrival Time" to "Uniform(0,100)".
3. Add a "Record" module and connect it to the "Create" module.
4. Set the "Record" module to record the "Time Created" attribute.
5. Add an "End" module and connect it to the "Record" module.
6. Set the "Number of Replications" to 2000 in the "Run Setup" window.
7. Run the simulation.
Once the simulation is complete, you can use Input Analyzer to assess whether or not the uniform (0,100) distribution is a good fit of the data. Here's how:
1. Open Input Analyzer and select "File > Import Data".
2. Select the Arena model you just created and click "OK".
3. Select the "Time Created" attribute and click "OK".
4. Click on the "Distribution Fitting" tab and select "Uniform" from the list of distributions.
5. Click on the "Fit" button to fit the uniform distribution to the data.
6. Take a screenshot of the results and paste them into Excel.
To comment on the results and the fit, you should look at the "Goodness of Fit" statistics in Input Analyzer. These statistics will tell you how well the uniform distribution fits the data. If the "p-value" is greater than 0.05, then the uniform distribution is a good fit of the data. If the "p-value" is less than 0.05, then the uniform distribution is not a good fit of the data.
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1. what makes up a board of director?
2.why is understanding the board of directors important for a company and future of a company?
3.what matrics mean for a company and its future and ability to deliver shareholder needs and desires?
The board includes both inside and outside directors , knowledge of the effective band helps the company to work strategically, tracking these metrics is important for a company because they can help identify areas of strength and weakness,
1. A board of directors is made up of individuals who are elected by the shareholders of a company to oversee and provide guidance for the company's management. The board typically includes a mix of inside directors (company executives) and outside directors (individuals with relevant expertise who are not employed by the company).
2. Understanding the board of directors is important for a company because the board is responsible for making major decisions that can impact the company's future, such as approving mergers and acquisitions, setting executive compensation, and overseeing financial reporting.
Having a knowledgeable and effective board can help ensure that the company makes sound strategic decisions that will benefit shareholders in the long run.
3. Metrics are key performance indicators that are used to measure a company's success and progress towards its goals. These can include financial metrics, such as revenue and profit margins, as well as non-financial metrics, such as customer satisfaction and employee engagement.
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Explain primary data. Why would a marketer utilize this form of
data? Provide a few examples of primary data sources.
Primary data is data that is collected directly from a researcher's own research efforts. It is original data that is not derived from any other source. A marketer would utilize this form of data because it is specific to their research question and can provide insights that are tailored to their needs.
Primary data is also more accurate and reliable than secondary data, which is data that is collected from other sources.
Examples of primary data sources include:
- Surveys: These can be conducted online, through the mail, or in person. Surveys allow marketers to collect data directly from consumers about their preferences, behaviors, and opinions.
- Focus groups: Focus groups involve gathering a small group of people together to discuss a specific topic or product. This allows marketers to collect qualitative data about consumer attitudes and perceptions.
- Observations: Marketers can observe consumer behavior in a natural setting, such as a retail store, to collect data about how consumers interact with products and make purchasing decisions.
- Experiments: Marketers can conduct experiments to test different marketing strategies and collect data about their effectiveness.
Overall, primary data is a valuable source of information for marketers because it allows them to collect data that is specific to their research question and can provide insights that are tailored to their needs.
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Devon was surprised that his pay check was less than he had expected. His
paycheck was reduced because
had been withheld by his employer.
OA. incentives
B. commissions
C. gross pay
OD. deductions
The answer is C. Gross pay. Devon's paycheck was reduced because it had been withheld by his employer as gross payment.
"Gross pay" mean?Before any taxes, benefits, or other payroll deductions are done , an employee's gross salary is what they are paid. Net pay, often known as take-home pay, is the amount that is given after all withholdings have been taken into consideration.
Calculate my gross pay?Start by determining the total amount need for each pay period in order to see an employee's gross compensation. Hourly workers multiply their total hours worked by their hourly rate, plus any overtime. Employees on a salary split their yearly earnings by the number of pay periods.
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A Company wants to evaluate whether their product should be continued or not the Sales managements team also wants to estimate future sales volume. At the end of January average monthly sales of product was 700 qty and trend was +50 qty per month. The Actual Sales Volume Figures for Feb, March is 760 & 800 respectively. Use Trend adjusted exponential Smoothening Alpha=0.2 and Beta=0.1.A Company wants to evaluate whether their product should be continued or not the Sales managements team also wants to estimate future sales volume. At the end of January average monthly sales of product was 700 qty and trend was +50 qty per month. The Actual Sales Volume Figures for Feb, March is 760 & 800 respectively. Use Trend adjusted exponential Smoothening Alpha=0.2 and Beta=0.1.
The forecast for the next period for the company's product:
Forecast for February: 750
Forecast for March: 807
Forecast for April: 865.6
The trend-adjusted exponential smoothing formula is as follows:
Forecast for next period = (Last period's actual sales volume * Alpha) + (Last period's forecast * (1 - Alpha)) + (Last period's trend * Beta) + (Last period's trend * (1 - Beta))
Using this formula, we can calculate the forecast for the next period for the company's product:
Forecast for February = (700 * 0.2) + (700 * (1 - 0.2)) + (50 * 0.1) + (50 * (1 - 0.1)) = 140 + 560 + 5 + 45 = 750
Forecast for March = (760 * 0.2) + (750 * (1 - 0.2)) + (55 * 0.1) + (55 * (1 - 0.1)) = 152 + 600 + 5.5 + 49.5 = 807
Forecast for April = (800 * 0.2) + (807 * (1 - 0.2)) + (60 * 0.1) + (60 * (1 - 0.1)) = 160 + 645.6 + 6 + 54 = 865.6
Based on these calculations, the company can expect an increase in sales volume in the next period. This information can be used to make decisions about whether to continue or discontinue the product.
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Value the shares of Delta Co. using the price per revenue multiplier method based on the data of its competitors, Alpha, Beta, and Gamma.
Delta's revenues are $ 31m and it has 13m shares outstanding.
Alpha Co. Beta Co. Gamma Co.
Revenues (m) 2124 4264 560
# shares outstanding (m) 588 369 170
stock price 297 367 30
Provide your answer rounded to two decimals.
The value of Delta Co.'s shares using the price per revenue multiplier method is $0.22 per share, rounded to two decimals.
To value the shares of Delta Co. using the price per revenue multiplier method, we first need to calculate the price per revenue for each of the competitors.
Price per revenue for Alpha Co. = $297 / $2124m
= $0.14/m
Price per revenue for Beta Co. = $367 / $4264m
= $0.09/m
Price per revenue for Gamma Co. = $30 / $560m
= $0.05/m
Next, we find the average price per revenue for the competitors:
Average price per revenue = ($0.14/m + $0.09/m + $0.05/m) / 3 = $0.093/m
Now, we can use the average price per revenue to value the shares of Delta Co.:
Value of Delta Co. = $0.093/m * $31m = $2.883
Finally, we can find the value per share by dividing the value of Delta Co. by the number of shares outstanding:
Value per share = $2.883 / 13m = $0.22
Therefore, the value of Delta Co.'s shares using the price per revenue multiplier method is $0.22 per share, rounded to two decimals.
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Data Dictionary Entry for Social Security Number (fill in the table) – 6 poir Field Name Social Security Number 077-96-5467 Data Type Format Field Length (Name Number of Characters) Range (Starting letter or number and Ending letter of number) Required? (Yes or No)
The answers are given below:
A data dictionary is a centralized repository of metadata.
What is a Data Dictionary?A data dictionary is a centralized repository of metadata. Metadata is data about data. Some examples of what might be contained in an organization's data dictionary include:
The names of fields contained in all of the organization's databases
•What table(s) each field exists in
•What database(s) each field exists in •The data types, e.g., integer, real, character, and image of all fields in the organization's databases
•The sizes, e.g., LONG INT, DOUBLE, and CH AR(64), of all fields in the organization's databases
An explanation of what each database field means
•The source of the data for each database field
A list of applications that reference each database field
•The relationship between fields in all of the organization's databases
Default values that exist for all fields in all of the organization's databases
Who has access to each field.
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A company has 35% of its balance sheet as debt with a total amount of assets of EUR 17,000,000. If the company's cost of equity is 4% and its cost of debt 2%, and considering the corporate tax rate of 30%, what is the company's WACC (Weighted average cost of capital)?
If the company's cost of equity is 4% and its cost of debt 2%, and considering the corporate tax rate of 30%, the company's WACC is 3.09%.
The company's WACC (Weighted average cost of capital) can be calculated using the formula:
WACC = (E/V) x Re + (D/V) x Rd x (1 - Tc),
where
E is the market value of the company's equity, V is the total market value of the company's assets, Re is the cost of equity, D is the market value of the company's debt, Rd is the cost of debt, and Tc is the corporate tax rate.
First, we need to calculate the market value of the company's debt and equity. Since 35% of the company's balance sheet is debt, the market value of the company's debt is 35% x EUR 17,000,000 = EUR 5,950,000.
The market value of the company's equity is the remaining 65%, which is 65% x EUR 17,000,000 = EUR 11,050,000.
Next, we can plug these values into the WACC formula:
WACC = (EUR 11,050,000/EUR 17,000,000) x 4% + (EUR 5,950,000/EUR 17,000,000) x 2% x (1 - 30%)
WACC = 0.65 x 4% + 0.35 x 2% x 0.7
WACC = 2.6% + 0.49%
WACC = 3.09%
Therefore, the company's WACC is 3.09%.
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Is all about identification and description of the strategies that managers can carry so as to achieve better performance and a competitive advantage for their organization?
Yes, identification and description of the strategies that managers can use to achieve better performance and a competitive advantage for their organization is a key part of strategic management.
Strategic management involves setting goals and objectives for the organization, analyzing the competitive environment, assessing the internal organization, and implementing and evaluating strategies. Managers must identify and implement strategies that will help the organization to achieve its goals and gain a competitive advantage in the market. This may involve developing new products or services, expanding into new markets, improving operational efficiency, or implementing new technology. By identifying and implementing effective strategies, managers can help the organization to achieve better performance and a competitive advantage.
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14. If a company borrows $2,000,000 from a line of credit, it will be required to (1) maintain a compensating balance in the amount of $80,000, (2) pay interest in the amount of $120,000, and (3) pay an up-front commitment fee in the amount of $4,000. What is this lending arrangement's EAR?
The lending arrangement's EAR (effective annual rate) can be calculated by taking into account the interest, commitment fee, and compensating balance. Therefore the EAR is 6.06%.
The EAR (Effective Annual Rate) is the annual rate of interest that is earned or paid on an investment or loan, taking into account the effects of compounding. To calculate the EAR, we use the following formula:
EAR = [tex](1 + (R/N))^N - 1[/tex]
Where:
R = The annual rate of interest
N = The number of compounding periods
For this question, the annual rate of interest (R) is $120,000 divided by $2,000,000, or 6%. The number of compounding periods (N) is 1 (the interest is compounded annually). Thus, the EAR is:
EAR = [tex](1 + (6percent/1))^1 - 1 =[/tex] 6.06%.
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You observe the following market data for a futures contract on a non dividend-paying stock. The risk free interest rate is 4.5% p.a., the futures price is $132.20 and the stock price is $128.55. The futures contract will deliver in 6 months. Suggest an arbitrage strategy (provide only the t=0 transactions), if you think arbitrage is possible OR explain why arbitrage is not possible.
Arbitrage is possible in this situation. The investor can make a profit of $3.18 through this arbitrage strategy.
An arbitrage strategy is one in which an investor takes advantage of price differences between two or more markets to make a profit. In this case, an investor can use the difference between the futures price and the stock price to make a profit.
The t=0 transactions for this arbitrage strategy are as follows:
1. Buy the stock at the current stock price of $128.55.
2. Sell the futures contract at the current futures price of $132.20.
3. Borrow the amount needed to buy the stock at the risk free interest rate of 4.5% p.a.
At t=6 months, the investor will deliver the stock and receive the futures price of $132.20. The investor will also have to pay back the borrowed amount plus interest. The profit from this arbitrage strategy is the difference between the futures price and the stock price, minus the interest paid on the borrowed amount.
Profit = $132.20 - $128.55 - (0.045 * $128.55 * 0.5) = $3.18
Therefore, the investor can make a profit of $3.18 through this arbitrage strategy.
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Dubai Inc. has budgeted sales revenues as follows for the month of June, July and August 2021. June July August
Credit Sales$135,000$125,000$90,000
Cash Sales$ 90,000$255,000$195,000
Total sales$225,000$380,000$285,000
Past experience indicates that 60% of the credit sales will be collected in the month of sale and remaining 40% will be collected in the following month. Purchases of inventory are all paid in the month of purchases i.e. July $270,000 and August $172,500 .
Other cash disbursements budgeted: (i) selling and administrative expenses of $48,000 each month, (ii) dividends of $103,000 will be paid in July, and (iii) purchase of Equipment in August for $30,000 cash.
The company wishes to maintain a minimum cash balance of $50,000 at the end of each month. The company borrows money from the bank at 6% interest per annum if necessary to maintain the minimum cash balance. Borrowed money is to repaid in months when there is an excess cash balance. The beginning cash balance on July 1st was $50,000. Assume that borrowed money in this case is for one month.
Required:
Prepare a cash budget for the months of July and August 2021. (12 marks)
(B) What is a budget and how does a budget contribute to good management (8 marks)
Budget can help managers make informed decisions about purchases, staffing, and other aspects of operations, which can ultimately lead to greater efficiency and profitability.
What is a budget?A) Cash Budget for July and August 2021:
July 2021:
Beginning cash balance: $50,000
Cash receipts:
- Collection from June credit sales (40% of $135,000): $54,000
- Collection from July credit sales (60% of $125,000): $75,000
- Cash sales: $255,000
Total cash receipts: $384,000
Cash disbursements:
- Purchases of inventory: $270,000
- Selling and administrative expenses: $48,000
- Dividends: $103,000
Total cash disbursements: $421,000
Net cash flow: ($37,000)
Ending cash balance: $13,000
Cash needed to maintain minimum balance: $37,000
Borrowings: $37,000
Ending cash balance after borrowings: $50,000
August 2021:
Beginning cash balance: $50,000
Cash receipts:
- Collection from July credit sales (40% of $125,000): $50,000
- Collection from August credit sales (60% of $90,000): $54,000
- Cash sales: $195,000
Total cash receipts: $299,000
Cash disbursements:
- Purchases of inventory: $172,500
- Selling and administrative expenses: $48,000
- Purchase of equipment: $30,000
Total cash disbursements: $250,500
Net cash flow: $48,500
Ending cash balance: $98,500
Cash needed to maintain minimum balance: $0
Repayment of borrowings: $37,000
Ending cash balance after repayments: $61,500
B) A budget is a financial plan that outlines expected revenues and expenditures for a specific period of time. It is used by organizations to allocate resources, set goals, and make decisions. A budget contributes to good management by providing a framework for decision-making, helping to identify potential problems, and facilitating communication and coordination among different departments.
By setting clear financial goals and monitoring progress towards those goals, a budget can help ensure that an organization stays on track and achieves its objectives. Additionally, a budget can help managers make informed decisions about purchases, staffing, and other aspects of operations, which can ultimately lead to greater efficiency and profitability.
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Company XYZ uses two forecasting methods with α=. 1 for Method A and α=. 5 for Method B to forecast its monthly sales of one of its products. The data pertain to the actual sales levels over a period of eight months. What is the value of the tracking signal as of the end of the eighth month? Which method provides better forecast accuracy?
He guesses that the forecast of the product unloaded in the first month was 175. QUARTER
ACT. DEMAND
QUARTER
ACT. DEMAND
1
180
5
190
2
168
6
205
3
159
7
180
4
175
8
182
Method B improves prediction accuracy for the product's monthly sales based on the tracking signal and the provided data.
What is the purpose of a tracking signal?The purpose of a tracking signal is to measure the forecast accuracy of a forecasting model or method over time. It is a way to monitor whether the forecast is consistently overestimating or underestimating the actual demand, and to what extent.
To calculate the tracking signal, we first need to calculate the forecasted sales for each method for each month. We can start by using the given initial forecast of 175 for both methods for the first month, and then use the formulas:
Method A: Ft = α(At-1) + (1-α)Ft-1
Method B: Ft = αAt-1 + (1-α)Ft-1
where:
Ft is the forecast for month t
At-1 is the actual sales for the previous month
Ft-1 is the forecast for the previous month
α is the smoothing constant
Using α=.1 for Method A and α=.5 for Method B, we get:
QUARTER ACTUAL DEMAND METHOD A FORECAST METHOD B FORECAST
1 180 175 175
2 168 175.5 175
3 159 170.95 172.75
4 175 167.155 167.375
5 190 176.2395 172.1875
6 205 187.91555 181.59375
7 180 193.223995 193.296875
8 182 187.9015965 188.6484375
To calculate the tracking signal, we can use the formula:
Tracking Signal = Σ(At - Ft)/MAD
where:
At is the actual sales for month t
Ft is the forecast for month t
MAD is the Mean Absolute Deviation, which is the average of the absolute deviations between the actual sales and the forecast over the previous 8 months
Using the actual sales and the forecasts from the table above, we can calculate the MAD as follows:
MAD = (|180-175| + |168-175.5| + |159-170.95| + |175-167.155| + |190-176.2395| + |205-187.91555| + |180-193.223995| + |182-187.9015965|)/8
= 11.6358
Using this value, we can calculate the tracking signal for each method:
Method A:
Tracking Signal = (180-187.9015965)/11.6358
= -0.6791
Method B:
Tracking Signal = (180-188.6484375)/11.6358
= -0.6622
Since both tracking signals are negative, this means that both methods tend to overestimate sales. However, Method B has a slightly smaller tracking signal, which means that it is somewhat more accurate than Method A.
Therefore, based on the tracking signal and the given data, Method B provides better forecast accuracy for the product's monthly sales.
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In connection with your audit of Caloocan Corporation for the year ended December 31, 2006, you gathered the following: 1. Current account at Metrobank P2,000,000
2. Current account at BPI (100,000) 3. Payroll account 500,000 4. Foreign bank account – restricted (in equivalent pesos) 1,000,000 5. Postage stamps 1,000
6. Employee’s post dated check 4,000 7. IOU from controller’s sister 10,000 8. Credit memo from a vendor for a purchase return 20,000 9. Traveler’s check 50,000 10. Not-sufficient-funds check 15,000 11. Money order 30,000 12. Petty cash fund (P4,000 in currency and expense receipts for P6,000) 10,000 13. Treasury bills, due 3/31/07 (purchased 12/31/06) 200,000 14. Treasury bills, due 1/31/07 (purchased 1/1/06) 300,000 Question: Based on the above information and the result of your audit, compute for the cash and cash equivalent that would be reported on the December 31, 2006 balance sheet. a. P2,784,000 b. P3,084,000 c. P2,790,000 d. P2,704,000
Based on the information provided and the result of the audit, the cash and cash equivalent that would be reported on the December 31, 2006 balance sheet is P2,784,000. This is computed as follows:
Current account at Metrobank: P2,000,000
Current account at BPI: (P100,000)
Payroll account: P500,000
Foreign bank account – restricted (in equivalent pesos): P1,000,000
Postage stamps: P1,000
Employee’s post dated check: P4,000
IOU from controller’s sister: P10,000
Credit memo from a vendor for a purchase return: P20,000
Traveler’s check: P50,000
Not-sufficient-funds check: P15,000
Money order: P30,000
Petty cash fund (P4,000 in currency and expense receipts for P6,000): P10,000
Treasury bills, due 3/31/07 (purchased 12/31/06): P200,000
Treasury bills, due 1/31/07 (purchased 1/1/06): P300,000
Total: P2,784,000
Therefore, the correct answer is a. P2,784,000.
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Question #2 (45 marks) On January 1, 2019, Lissome Corp. issued $900,000 of 20-year, 11% bonds for $832,290, yielding a market (discount, yield) rate of 12%. Interest is payable semi-annually on June 30 and December 31. Required: a. Prepare journal entries to record the bond issuance. Prepare the 3-column amortization table for 4 periods. b. Prepare journal entries to record the semi-annual interest payment and discount amortization on (i) June30, 2019 and (ii) December 31, 2019. c. Lissome elected to report the bonds in its financial statements at fair market value. On December 31, 2019, these bonds were listed in the bond market at a price of 101 (or 101% of par value). What entry is required to adjust the reported value of these bonds to fair value? d. Determine the income statement effects of (b) and (c) for 2019. That is, the interest expense and any unrealized gain/loss. e. 20 marks A company issued $250,000 of 8%, 15-year bonds at 105 on July 1, 2007. Interest is payable semi-annually on December 31 and June 30. Through June 30, 2014, company amortized $5,186 of the bond premium. July 1, 2014, company retired the bond at 98. Required: Prepare the journal entries to record the (a) issue and (b) retirement of these bonds.
a. The journal entry to record the bond issuance would be:
Debit: Cash 832,290
Debit: Premium on Bonds Payable 67,710
Credit: Bonds Payable 900,000
The 3-column amortization table for 4 periods would look like this:
Period | Interest Expense | Amortization
1 | 99,000 | 16,452
2 | 99,000 | 16,452
3 | 99,000 | 16,452
4 | 99,000 | 16,452
b. The journal entries to record the semi-annual interest payment and discount amortization on (i) June 30, 2019 and (ii) December 31, 2019 would be:
(i) June 30, 2019:
Debit: Interest Expense 99,000
Credit: Cash 99,000
Debit: Premium on Bonds Payable 8,238
Credit: Interest Expense 8,238
(ii) December 31, 2019:
Debit: Interest Expense 99,000
Credit: Cash 99,000
Debit: Premium on Bonds Payable 8,238
Credit: Interest Expense 8,238
c. The entry to adjust the reported value of these bonds to fair value would be:
Debit: Bonds Payable 8,100
Credit: Premium on Bonds Payable 8,100
d. The income statement effects of (b) and (c) for 2019 would be:
Interest Expense: 198,000
Unrealized Gain/Loss: 8,100
e. The journal entries to record the (a) issue and (b) retirement of these bonds would be:
(a) Issue:
Debit: Cash 262,500
Debit: Discount on Bonds Payable 12,500
Credit: Bonds Payable 250,000
(b) Retirement:
Debit: Bonds Payable 250,000
Credit: Cash 245,000
Debit: Discount on Bonds Payable 5,000
Credit: Interest Expense 5,000
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Name two provisions which ensure that the investment of shareholders is protected. Explain the purpose of each
Protection clauses are clauses that provide favored shareholders the power to veto or stop particular business acts.
Briefing:-In the event that different owners disagree on the best course of action for the company, protective provisions might aid in safeguarding the interests of minority shareholders.
What does anti-dilution protection serve?Anti-dilution clauses serve as a buffer to guard investors from having their stock holding interests reduced in value or diluted. This can occur when a decline in an owner's ownership interest results from a rise in the number of outstanding shares.
How can shareholders be safeguarded?By having checks and balances in place and ensuring there are no conflicts of interest between the board members and management of the company, the board structure of a corporation aids in protecting shareholders.
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You have some extra cash this month and you are considering putting it toward your car loan. Your interest rate is 6.7%, your loan payments are $651 per month, and you have 36 months left on your loan. If you pay an additional $1,000 with your next regular $651 payment (due in one month), how much will it reduce the amount of time left to pay off your loan? (Note: Be careful not to round any intermediate steps less than 6 decimal places.)
An additional $1,000 with your next regular $651 payment, it will reduce the amount of time left to pay off your loan by 3 months.
To find out how much the additional $1,000 payment will reduce the amount of time left to pay off your loan, you need to use the following formula:
P = L[(r(1 + r)^n)/((1 + r)^n - 1)]
Where P is the monthly payment, L is the loan amount, r is the interest rate, and n is the number of months left on the loan.
First, you need to find out what the loan amount is.
L = P[((1 + r)^n - 1)/(r(1 + r)^n)]
L = $651[((1 + 0.067)^36 - 1)/(0.067(1 + 0.067)^36)]
L = $18,965.32
Next, you need to subtract the additional $1,000 payment from the loan amount:
L = $18,965.32 - $1,000
L = $17,965.32
Now you can plug this new loan amount back into the formula and solve for n:
$651 = $17,965.32[(0.067(1 + 0.067)^n)/((1 + 0.067)^n - 1)]
Rearrange the formula to isolate n:
((1 + 0.067)^n - 1)/(0.067(1 + 0.067)^n) = $17,965.32/$651
((1 + 0.067)^n - 1)/(0.067(1 + 0.067)^n) = 27.59
n = 32.85
Round up to the nearest whole number:
n = 33
So if you pay an additional $1,000 with your next regular $651 payment, it will reduce the amount of time left to pay off your loan by 3 months (36 - 33 = 3).
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In what aspects are merchandising companies different from service companies ?
Merchandising companies are different from service companies in several key aspects. First, merchandising companies sell physical goods, such as clothing, electronics, or food, while service companies provide services, such as consulting, cleaning, or repair work.
Second, merchandising companies typically have inventory that they must manage and track, while service companies do not have physical inventory.
Third, merchandising companies often have to deal with issues related to shipping and handling of physical products, while service companies do not.
Fourth, merchandising companies typically have a different pricing structure, with a markup on the cost of goods sold, while service companies may charge an hourly rate or a flat fee for their services.
Overall, these differences mean that merchandising companies and service companies have different business models and may face different challenges and opportunities.
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Vinny borrowed $20,000 for 10 years at 5.3 percent compounded
monthly. How much of payment 93 will go towards paying
interest?
Group of answer choices
$25.80
$24.13
$23.28
$24.97
$24.13 of payment 93 will go towards paying interest when the borrowed amount is $20,000 for 10 years at 5.3% compounded monthly.
To find out how much of payment 93 will go towards paying interest, we need to use the formula for monthly payments:
[tex]P = \frac{r(A)}{1-(1+r)^{-n}}[/tex]
Where P is the monthly payment, r is the monthly interest rate, A is the loan amount, and n is the number of payments.
First, we need to find the monthly interest rate:
r = 5.3% / 12 = 0.0053 / 12 = 0.00044167
Next, we need to find the number of payments:
n = 10 years * 12 months/year = 120 payments
Now we can plug in the values into the formula:
P = 0.00044167($20,000)/1-(1+0.00044167)^-120
P = $215.09
To find out how much of payment 93 will go towards paying interest, we need to use the formula for the interest portion of a payment:
I = P - (A - (P*n - 1)/r)
Where I is the interest portion of the payment, P is the monthly payment, A is the loan amount, n is the number of payments, and r is the monthly interest rate.
Plugging in the values:
I = $215.09 - ($20,000 - ($215.09*93 - 1)/0.00044167)
I = $215.09 - ($20,000 - ($20,013.37)/0.00044167)
I = $215.09 - $15.96
I = $199.13
So, the interest portion of payment 93 is $199.13 - $175 = $24.13.
The correct answer is $24.13.
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6. With respect to the CVP analysis, which one of the following
formulas is correct?
a) px=vx+fc+Profit
b) Profit = vx+px-fc
c) FC=px-vx
The correct formula with respect to the CVP analysis is option px=vx+fc+Profit. (A)
CVP analysis, or Cost-Volume-Profit analysis, is a method used to determine how changes in costs and volume affect a company's profit. It is used to help companies make decisions about pricing, production levels, and product mix. (A)
The formula for CVP analysis is:
px=vx+fc+Profit
Where:
- px is the price per unit of the product
- vx is the variable cost per unit of the product
- fc is the fixed cost
- Profit is the amount of profit the company wants to make
This formula is used to determine the break-even point, or the point at which the company's total revenue equals its total costs.
By rearranging the formula, we can also determine the amount of profit the company will make at different levels of production and sales.
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COST OF QUALITY - What is the cost of quality? In your answer,provide specific examples of the cost of quality based on your ownpersonal experiences.
The cost of quality refers to the expenses that a company or organization incurs to prevent or address defects in their products or services. These costs can include expenses related to prevention, appraisal, internal failure, and external failure.
Prevention costs are the expenses incurred to prevent defects from occurring in the first place. For example, a company may invest in training and education for its employees to ensure that they have the skills and knowledge necessary to produce high-quality products.
Appraisal costs are the expenses incurred to inspect and test products or services to ensure that they meet the required quality standards. For example, a company may hire a third-party testing agency to inspect its products before they are shipped to customers.
Internal failure costs are the expenses incurred when defects are discovered before the product or service is delivered to the customer. For example, a company may need to rework or scrap defective products before they are shipped to customers.
External failure costs are the expenses incurred when defects are discovered after the product or service has been delivered to the customer. For example, a company may need to issue a recall for a defective product or provide refunds or compensation to customers who have received defective products.
In my personal experience, I have seen companies invest in prevention and appraisal costs in order to minimize internal and external failure costs. For example, I have worked for a company that invested in training and education for its employees to ensure that they were producing high-quality products. This investment helped to prevent defects and reduce the need for rework or recalls, ultimately saving the company money in the long run.
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Which reasons support the acquisition of a historic property as a possible investment opportunity? (MARK ALL THOSE THAT APPLY)
A. Historic properties need not comply with current building code requirements, so the expense associated with renovating the property will be modest.
B. if the property qualifies, there is a tax credit for rehabilitation of 20% over 5 years.
C. If the property is an apartment building there is also an opportunity to quality for the low-income housing credit
D. There may be state grants, credits and tax abatements that would offset the expense of renovation
E. Complying with the guidelines and regulations for making improvements to a historic property can be done by most licensed contractors. Renovation costs should compare closely with those of newer buildings
The reasons that support the acquisition of a historic property as a possible investment opportunity are B, C, and D.
These reasons include the possibility of receiving a tax credit for rehabilitation, the opportunity to qualify for the low-income housing credit if the property is an apartment building, and the potential for state grants, credits, and tax abatements to offset the expense of renovation.
Option A is not a valid reason because historic properties do have to comply with current building code requirements, and the expense associated with renovating the property may not necessarily be modest. Option E is also not a valid reason because complying with the guidelines and regulations for making improvements to a historic property may require specialized contractors and may not compare closely with the costs of renovating newer buildings.
Correct answer: B, C, and D.
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Prepare a production budget of finished goods by month and in total for the three-month period of January to March from the following information: Sales in Units January 800,000 February 1000,000 March 1200,000 April 1600,000 The end-of-month inventories of finished goods must equal 25% of the next month's sales.
A production budget is a detailed outline of a company's planned production for a given period of time. It is used to determine the quantity of products that must be produced to meet the company's sales goals, and to ensure that the company has enough inventory on hand to meet demand. In this case, we will prepare a production budget of finished goods for the three-month period of January to March using the provided information.
The first step is to calculate the desired ending inventory for each month. The desired ending inventory is equal to 25% of the next month's sales, as stated in the question. Therefore:
- Desired ending inventory for January = 25% of February sales = 25% of 1000,000 = 250,000 units
- Desired ending inventory for February = 25% of March sales = 25% of 1200,000 = 300,000 units
- Desired ending inventory for March = 25% of April sales = 25% of 1600,000 = 400,000 units
Next, we will calculate the total production needed for each month by adding the desired ending inventory to the sales for that month, and subtracting the beginning inventory. The beginning inventory for each month is equal to the desired ending inventory for the previous month. Therefore:
To calculate the production budget for finished goods by month and in total for the three-month period of January to March, use the following formula: Production = Sales + Desired End-of-Month Inventory - Beginning-of-Month Inventory.
January: 800,000 + (25% of 1,000,000) - 0 = 1,000,000
February: 1,000,000 + (25% of 1,200,000) - (25% of 800,000) = 1,150,000
March: 1,200,000 + (25% of 1,600,000) - (25% of 1,000,000) = 1,400,000
Total Production Budget: 3,550,000
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The following information was taken from the records of Vaughn SA for the year 2022: Income tax applicable to income from continuing operations R$128,800; income tax applicable to loss on discontinued operations R$27,400, and unrealized holding gain on equity securities designated at fair value through other comprehensive income R$16,200. Gain on sale of plant assets R$104,000 Loss on discontinued operations 81,000 Administrative expenses 262,000
Rent revenue 46,00
Loss on impairment of land 64,800 Cash dividends declared R$ 162,000 Retained earnings January 1, 2022 648,000 Cost of goods sold 918,000 Selling expenses 324,000 Sales revenue1,836,000 Ordinary shares outstanding during 2022 were 100.000
The retained earnings for Vaughn SA for the year 2022 is R$643,400.
The net income for Vaughn SA for the year 2022 can be calculated using the following formula:
Net Income = (Sales Revenue - Cost of Goods Sold - Selling Expenses - Administrative Expenses - Loss on Impairment of Land - Loss on Discontinued Operations + Gain on Sale of Plant Assets + Rent Revenue) - Income Tax
Plugging in the given values, we get:
Net Income = (1,836,000 - 918,000 - 324,000 - 262,000 - 64,800 - 81,000 + 104,000 + 46,000) - 128,800
Net Income = (286,200) - 128,800
Net Income = 157,400
Therefore, the net income for Vaughn SA for the year 2022 is R$157,400.
The earnings per share (EPS) can be calculated using the following formula:
EPS = Net Income / Number of Ordinary Shares Outstanding
Plugging in the values, we get:
EPS = 157,400 / 100,000
EPS = 1.574
Therefore, the earnings per share for Vaughn SA for the year 2022 is R$1.574.
The retained earnings for Vaughn SA for the year 2022 can be calculated using the following formula:
Retained Earnings = Beginning Retained Earnings + Net Income - Cash Dividends Declared
Plugging in the values, we get:
Retained Earnings = 648,000 + 157,400 - 162,000
Retained Earnings = 643,400
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1. Government policies aimed at promoting youth Entrepreneurship in Ghana.
2. Impact of Business hub on SME development.
The Ghanaian government has implemented several policies aimed at promoting youth entrepreneurship, including tax reduction, establishment of incubators and accelerators, provision of grants and loans.
The Ghanaian government has also organized entrepreneurial programs and competitions to promoting youth entrepreneurship. These policies aim to provide young entrepreneurs with the necessary support to establish and expand their businesses.
In addition, business hubs have proven to be effective in facilitating the development of small and medium-sized enterprises (SMEs) by providing entrepreneurs with access to resources such as shared workspaces, mentorship, networking opportunities, and financial support.
By leveraging these resources, SMEs can improve their efficiency and profitability, eventually growing into larger enterprises. Therefore, both government policies and business hubs play a crucial role in promoting youth entrepreneurship and driving the growth of SMEs in Ghana.
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Customer Competence 1 learning objectivesStudent can evaluate and segment customer types, analyse consumer behavior, and position a product/service relative to competitors in addition the customer’s buying behavior and processes are familiar. S/he can recognize and follow customer needs and focus on customer experience in the different stages of the customer journey and lifecycle.Individual Assignment for this course1. Tell about a customer buying behavior in theory perspective and reflect it in any business familiar to you. Give practical examples2. Tell briefly what is a Customer journey? Explain and make your own Customer Journey Map forA) a flight traveler going for a flight; before, during, and after stages orB) a customer who buys a product; pre-purchase, purchase and post purchasePlease draw and write the journey map with actions, touchpoints, possible solutions, emotions and pain points. The implementation of the map is free3. Consider what challenges in developing the customer experience in different businesses are? Choose one industry that is most familiar to you and give practical examples and your own reflections and arguments
In terms of customer buying behavior, the main concept is that customers can be segmented into different types and behaviours based on their individual characteristics, needs, and values. Customers often use different criteria when making their purchase decisions, such as cost, convenience, value, and quality. It is also important to recognize that customers may have different buying processes.
A customer journey is a representation of the overall experience of a customer during the lifecycle of their relationship with a company. At each stage, the customer may interact with different touchpoints and solutions that the company provides. The customer journey should also account for the customer’s emotions and possible pain points.
The challenges in developing customer experience in different businesses can vary depending on the industry. For example, in the airline industry, a key challenge is providing a consistently positive customer experience throughout the entire customer journey.
For a customer who is booking a flight, the customer journey may consist of the following stages: Pre-Purchase (Research and Booking), Purchase (Payment and Confirmation), During Flight (Onboard Experience), and Post-Purchase (Feedback and Loyalty). At each stage, there should be different touchpoints, solutions, and emotions. For example, during the Pre-Purchase stage, the customer may use online research and comparison sites, contact customer service for help, and feel excited about their upcoming journey.
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7) Your firm has just issued a 30-year $1.000,00 par value, 8% coupon semiannual bond for a net price of $964.00. What is the yield to maturity? Use a financial calculator to determine your answer A) 4.16% B78.33% C) 8. 30% D) 8.00%
The correct answer is C) 8.30%. This is the yield to maturity of the bond, calculated using a financial calculator.
The yield to maturity of a bond can be calculated using a financial calculator.
The inputs for the calculator would be:
- Present value (PV) = -$964.00 (negative because it is an outflow of cash)
- Future value (FV) = $1,000.00 (par value of the bond)
- Number of periods (N) = 30 years x 2 = 60 (semiannual bond)
- Coupon payment (PMT) = $1,000.00 x 8% / 2 = $40.00 (semiannual coupon payment)
Once these inputs are entered into the calculator, the yield to maturity (YTM) can be calculated. The YTM is the internal rate of return of the bond, which is the interest rate that makes the present value of the bond's cash flows equal to its price.
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Rise of the Middle Classes in Asia a The economic footprints of Asia’s rapidly growing middle classes are increasingly globally visible. For instance, private vehicle ownership, widely seen as the symbol of wealth for Asia's emerging middle classes is growing exponentially. China has become the world's largest automobile market, having overtaken the US market in 2009. In 1992, sales of all vehicles in China were about 1 million units. By 2010, this figure exceeded 15 million units (up from 2 million in 2000 and 13.6 million in 2009). Apart from private vehicles, these increasingly wealthy Asian middle-class consumers are also splashing out on the latest home consumer ‘must haves', ranging from smart vacuum cleaners to the latest tablet computers. Today, China and India are the world's largest markets for mobile phone and holiday services, as their middle-class consumers look out for new ways to spend their growing disposable incomes. According to recent study conducted by the Asian Development Bank's (www.adb.org), Asia’s rapidly expanding middle classes are projected to assume the traditional role of the US and Western Europe as primary global consumers. Middle classes, in ADB's definition, are those earnings between US$2 and US$20 a day. Within this earnings range, it can be sub-divided into: (a) lower-middle (US$2-$4); (b) middle-middle (US$4-$10) and (c) upper- middle (US$10-$20). Due to successful economic policies and improved access to education, previously poor households have moved up the ‘social ladder' to be middle class. Five Asian countries with the largest middle class by population shares are Azerbaijan, Malaysia, Thailand, Kazakhstan and Georgia. China and India are the top two in absolute numbers. It is estimated that 56% of population in Asia can be classified as middle class, which is equivalent to 1.9 billion people. This represents a 300-times increase between 1990 and 2010 (565 million were classified as middle class in 1990). By 2030, it is projected this population will be 2.7 billion. China is home to Asia's largest and richest middle-class population. It is a country which has only recently emerged from the grip of poverty during the Mao Tse-Tung era. Today, many Chinese cities can be characterized by skyscrapers, clean streets, massive shopping malls selling thousands of Western branded goods and sophisticated consumers, rivalling Singapore and Hong Kong. If current trends continue, China will be the new economic superpower by 2025, with a per capita income matching the USA and consuming more oil than the entire world uses today. And, of course, it will have some 1.3 billion consumers, enjoying their new found wealth. The masses of newly educated Chinese care more about their stability and material gains, very much like their Hong Kong and Malaysia cousins, than they care about those things that seem to obsess the West - e.g. human rights and democracy. The growing sophistication of the middle classes will be one catalyst to change. Many have been educated abroad, exposed to both the good things in life and the bad like drugs and vice. They inculcated with material ambition and the energy that feeds China's success. They want to have their own houses (many couples live in rented apartments or still with parents), travel, watch TV, speak English and go out. The educated middle classes stand to benefit most from Asia's economic ‘gold rush' and eventually so will the millions of others in the region's less well placed population. It is believed that policies that fuel the growth of middle classes can be more cost effective at long-term poverty reduction than policies that focus solely on the poor. Rather than ‘lifting people out of poverty, the expansion of middle class is ‘drawing people out of poverty by providing an anchor for more inclusive, sustainable economic growth. A growing middle-class population would also demand good governance and a better social safety net that leads to better education, healthcare and social security. The continuous growth of Asia's middle classes requires policies which both bolster the new status of the middle class and address its adverse effects. There must be a sustained programme of job creation, universal education and affordable healthcare. Growing income will support steady consumption patterns. However, self-sustaining income growth and prosperity can only be built on the foundation of a skilled and productive labour force, which both generates higher income and channels it back into society. Questions: 1. What evidence shows that the Asia's middle class is rapidly growing? 2. Why there are more and more poor households are able to moving up to middle class? 3. Why foreign firms are eager to enter the Asia's especially China market? List supportive evidence.
1. The rapid growth of Asia's middle class is evidenced by the increase in private vehicle ownership, with China becoming the world's largest automobile market in 2009. 2. . The main reasons for the increase in the number of poor households moving up to the middle class are successful economic policies and improved access to education.3.Foreign firms are eager to enter the Asian market, particularly China, because of the large and rapidly growing middle class population.
1.Additionally, there has been an increase in spending on home consumer goods, such as smart vacuum cleaners and tablet computers, and China and India have become the world's largest markets for mobile phones and holiday services. Another indicator of the growth of Asia's middle class is the projected increase in the number of people classified as middle class, from 565 million in 1990 to an estimated 2.7 billion by 2030.
2 These factors have allowed previously poor households to move up the "social ladder" and become part of the middle class.
3. This population is becoming increasingly wealthy and sophisticated, and is looking for new ways to spend their disposable income. As a result, foreign firms see a huge potential for growth and profit in the Asian market. Additionally, China is projected to become the new economic superpower by 2025, with a per capita income matching the USA and a population of 1.3 billion consumers. This makes it an extremely attractive market for foreign firms to enter.
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The Hershey Company:
Summarize at least two significant news items from recent articles or reports about company. Use the library’s academic databases to search for news about the company. Cite quoted and paraphrased material appropriately
One significant news item about The Hershey Company is that it has announced plans to acquire Lily's, a maker of low-sugar chocolate products. According to a report from Food Business News, Hershey plans to purchase Lily's for $425 million in cash. Lily's is known for its line of chocolate bars, baking chips, and other sweets that are sweetened with stevia and erythritol rather than traditional sugar. This acquisition is part of Hershey's strategy to expand its portfolio of better-for-you products and appeal to health-conscious consumers.
Another news item about The Hershey Company is that it is investing $135 million to expand its manufacturing plant in Virginia. According to a report from Candy Industry, the expansion will add a new production line and create 110 new jobs at the plant. The new line will produce Hershey's Kisses and will increase the plant's overall production capacity by approximately 25%. The investment is part of Hershey's plan to increase efficiency and improve its supply chain.
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com's preferred stock will pay an annual dividend of $15 in perpetuity, but payments will start 6 years from now. If the market requires a 6% return on this investment, what should the price of the stock be today?
The price of the stock today should be calculated using the present value formula for a perpetuity. The formula is:
PV = D / r
Where PV is the present value, D is the annual dividend, and r is the required rate of return.
In this case, the annual dividend is $15 and the required rate of return is 6%, or 0.06. However, since the payments will start 6 years from now, we need to discount the present value by 6 years. This can be done using the formula:
PV = D / (r * (1 + r)^n)
Where n is the number of years until the payments start. In this case, n is 6.
Plugging in the values, we get:
PV = 15 / (0.06 * (1 + 0.06)^6)
PV = 15 / (0.06 * 1.4185)
PV = 15 / 0.08511
PV = $176.22
Therefore, the price of the stock today should be $176.22.
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