In order to come up with critically reviewed literature chapters, First, you should select a topic and then start your research. Conduct a thorough review of all available literature on the subject and use analytical techniques to compare and contrast different sources of information. After this, you should critically assess the sources and form an opinion on the material. Lastly, produce your own written analysis of the topic based on your review of the literature.
To come up with critically reviewed literature chapters, you can follow these steps:
By following these steps, you can produce a high-quality literature review chapter that is well-researched, organized, and critically analyzed.
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Kellogg’s ($K) Our team’s previous memorandum on return on capital and cost of capital analysis for Kellogg’s and General Mills pointed to a significant challenge that Kellogg’s has, its significant debt problem. Kellogg’s acknowledges this in their most recent 10-K filing as well. The 2021 consolidated balance sheet shows current debts of $712M and noncurrent debt of $6.26B for a total debt of $6.97B. The company’s balance sheet shows total company equity of $3.72B. This results in a debt-to-equity ratio of 1.87. We expect that the debt-heavy financing mix was chosen due to Kellogg’s cost of equity being substantially higher than their cost of debt. While the company does cite several potential risks associated with its high debt ratio, including limiting its ability to pay dividends, the debt is currently being managed in a manner that doesn’t substantially impact today’s cash flows Kellogg’s has a long history of consistently paying dividends and growing its dividend distribution year over year. Since becoming a publicly-traded company Kellogg’s has paid dividends every year, with the dividend distribution growing or staying at the previous year’s level, each year. In 2021 Kellogg’s paid total dividends of $2.31 per share across four quarterly distributions, this is up from a total of $2.28 per share in dividends in 2020. 2021 dividend distribution cost a total of $788M up from $782M in 2020. Over the past two years, Kellogg’s has allocated significant resources to repurchase outstanding shares. In 2021 Kellogg’s has a treasury stock balance of 79.21M shares at a total cost of $4.71B, this was an increase from the 2020 balance of 77.07M shares at a total cost of $4.56B. In their 10K filing Kellogg’s notes that treasury stock shares are generally used to satisfy stock-based awards for employees. General Mills ($GIS) As discussed in the previous memo, General Mills currently has a debt-to-equity ratio of .56. The company’s 2021 Form 10-K filing shows the current portion of long-term debt as $2,463.8M and long-term debt of $9,786.9M. Long-term debt decreased from a high of $10,929.0M in 2020. The company’s total stockholders’ equity was $9,470.4M in 2021 compared to $8,058.5M in 2020. These values show that General Mills has decreased its debt-to-equity ratio over the past year. The company does not give a reason for this in its Form 10-K, but it may be to increase its flexibility as it pursues its stated accelerated growth strategy in the face of the ongoing pandemic. Concerning the company’s dividend strategy, General Mills proudly boasts that it and its predecessors have continuously paid dividends for the past 120 years without interruption. Dividends have steadily increased since 2013 when dividends per share were $1.55. 2021 saw dividends of $2.02 per share for total dividend payments of $1,246.4M. This was an increase from the previous two years in which dividends per share were $1.96. The company could have paid out more in dividends in 2021 as we have estimated General Mills’ FCFE as $2,608.7M. This indicates that the company had excess earnings that have not been put to use and could be returned to shareholders. The company has made significant efforts to repurchase outstanding shares and boost its treasury holdings. General Mills states that it uses the treasury balance for employee stock compensation plans. The company repurchased $301.4M in stocks for the fiscal year 2021. This was a drastic increase from the years 2020 and 2019 which saw stock repurchases of $3.4M and $1.1M, respectively. General Mills appears to be shifting more focus to returning shareholder wealth through share buybacks. Again, the company still had excess free cash flows that could have been used to return even more wealth. While General Mills had excess FCFE for 2021, the company has been using its capital wisely. As discussed in the last memo, The company’s ROIC was much higher than its WACC, indicating that General Mills has a history of selecting good projects and will likely continue to do so. As such, we feel the shareholders have faith in the management team and will continue to allow the company to operate under its current dividend policy. Similar to General Mills, Kellogg’s continued dividend growth and a policy of repurchasing shares of stock, are indications that investors’ interests are being accounted for by the company’s management. However, investors should be cautious as the capital structure of Kellogg’s, specifically, their debt load could be problematic in the future if it is not carefully monitored and controlled.
Both Kellogg's and General Mills have strong dividend policies and a history of repurchasing shares to return wealth to shareholders.
However, Kellogg's has a significant debt problem, with a debt-to-equity ratio of 1.87, which could potentially limit its ability to pay dividends in the future. On the other hand, General Mills has a lower debt-to-equity ratio of 0.56 and has decreased its debt-to-equity ratio over the past year, indicating a stronger financial position. Both companies use treasury stock shares to satisfy stock-based awards for employees. General Mills appears to be shifting more focus to returning shareholder wealth through share buybacks, while Kellogg's continues to grow its dividend distribution. Investors should be cautious about Kellogg's debt load, but both companies seem to be accounting for investors' interests in their dividend policies and share repurchases.
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GHI Company bonds have a coupon rate of 4.11 percent, 7 years to maturity, and a current price of $1,032. What is the current yield on these bonds (in percent)? Answer to two decimals.
Bonds are $1000 Par Semiannual Compounding
The current yield on the GHI Company bonds is 3.98%.
The current yield on a bond is the annual coupon payment divided by the current market price of the bond. In this case, the annual coupon payment is 4.11% of the $1000 par value, or $41.10. The current market price is $1,032.
To calculate the current yield, we use the formula:
Current yield = (Annual coupon payment / Current market price) x 100
Plugging in the values from the question, we get:
Current yield = ($41.10 / $1,032) x 100
Current yield = 0.0398 x 100
Current yield = 3.98%
Therefore, the current yield on the GHI Company bonds is 3.98%.
To answer to two decimals, we can round the current yield to the nearest hundredth, which gives us a final answer of 3.98%.
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Watertown Paper Corporation is considering adding another machine to manufacture corrugated cardboard. The machine would cost $900,000. It would have an estimated life of 6 years and no salvage value. The company estimates that annual revenues would increase by $400,000 and that annual expenses excluding depreciation would increase by $190,000. It uses the straight-line method to compute depreciation expenses. Management has a required rate of return of 9%. Compute the annual rate of return.
The annual rate of return is 6.11%, which is greater than the required rate of return of 9%.
How do we calculate the annual rate of return?The annual rate of return can be computed using the following formula:
Rate of Return = (Annual Revenues – Annual Expenses – Annual Depreciation) ÷ Total Investment
Total Investment = $900,000
Annual Revenues = $400,000
Annual Expenses (excluding depreciation) = $190,000
Annual Depreciation = Total Investment ÷ Estimated Life
= $900,000 ÷ 6
= $150,000
Rate of Return = ($400,000 - $190,000 - $150,000) ÷ $900,000
= 0.0611 = 6.11%
Therefore, the annual rate of return is 6.11%, which is greater than the required rate of return of 9%.
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Income statement: 2024 sales revenue $ 2,500,000 cost of goods sold 1,300,000 net income 200,000 balance sheets: 2024 2023 accounts receivable $ 300,000 $ 200,000 total assets 2,000,000 1,800,000 total shareholders' equity 900,000 700,000 the return on shareholders' equity for 2024 is:
From the given income statement given, the return on shareholders' equity for 2024 is 22.22%.
What is the shareholders' equity for 2024To calculate the return on shareholders' equity for 2024, we need to use the following formula:
Return on Shareholders' Equity = Net Income / Shareholders' Equity
From the income statement, we know that the net income for 2024 is $200,000. From the balance sheets, we know that the shareholders' equity for 2024 is $900,000.
Therefore, the return on shareholders' equity for 2024 is:
$200,000 / $900,000 = 0.2222
We can express this in percentage
= 0.2222 * 100
= 22.22%
The shareholders' equity is 22.22%
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2. Stratford Corp. (SC) is considering a new project. SC estimates that there is a 25% probability that cash flows in one year will be $250,000, and a 75% probability the cash flows will be $350,000. The cost of the project is $200,000. The project’s cost of capital is 15% and the risk-free rate is 5%.
What is the NPV of the project?
If the $200,000 cost of the project is financed 100% with equity, what is the expected return on the unlevered equity?
If the project is financed with 50% debt (at the risk-free rate), what should the value of the equity be?
What is the expected return on the levered equity?
If the company finances the project with 30% debt (at the risk-free rate), what should the value of the equity be?
What is the expected return on the levered equity?
The expected return on the levered equity is equal to the cost of capital plus the present value of the debt times the ratio of debt to total capital is equal to 17%.
The NPV of the project is the present value of the cash flows minus the cost of the project. The NPV can be calculated as follows:
NPV = $250,000 x (1 - 0.25) + $350,000 x (1 - 0.75) - $200,000 = $25,000
If the project is financed 100% with equity, then the expected return on the unlevered equity is equal to the cost of capital, or 15%.
If the project is financed with 50% debt (at the risk-free rate of 5%), then the value of the equity is equal to the NPV plus the present value of the debt. The present value of the debt is equal to the cost of the debt times the present value factor for the term of the loan. The value of the equity is thus equal to:
Value of Equity = NPV + Cost of Debt x Present Value Factor = $25,000 + $100,000 x (1 - 0.05) = $125,000
The expected return on the levered equity is equal to the cost of capital plus the present value of the debt times the ratio of debt to total capital, or 15% + $100,000 x 0.5 = 20%.
If the company finances the project with 30% debt (at the risk-free rate of 5%), then the value of the equity is equal to the NPV plus the present value of the debt. The value of the equity is thus equal to:
Value of Equity = NPV + Cost of Debt x Present Value Factor = $25,000 + $60,000 x (1 - 0.05) = $85,000
The expected return on the levered equity is equal to the cost of capital plus the present value of the debt times the ratio of debt to total capital, or 15% + $60,000 x 0.3 = 17%.
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ICLOS Hagine a company that report a ROE 28%. During the same year, the Toti atat 1.59 and is not good manger la qual to 18k, benet umover uma out to be of a.213 b.111 c.1.16
d. 1.25
ICLOS Hagine a company that report a ROE 28%. During the same year, the Toti atat 1.59 and is not good manger la qual to 18k, benet umover uma out to be of 1.16 . (C)
The question is asking what the net profit margin is for a company with a Return on Equity (ROE) of 28%. The net profit margin is calculated by dividing the net profit by total sales, so the net profit margin is:
Net Profit Margin = Net Profit / Total Sales
In this case, Net Profit is 18,000 and Total Sales is 1.59. So, the Net Profit Margin is:
Net Profit Margin = 18,000 / 1.59 = 1.16 (C)
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KOS company produces 3 types of products: backpacks /A/, bags /B/, ski bags /C/.
Fixed costs equal $ 105 600.
Position A B C
1. price 500 300 250
2. unit variable costs 200 180 150
3. unit contribution margin 300 120 100
4. CMR 0,6 0,4 0,4
5. effortfulness h/unit 3 2 0,5
6. production structure volume index 0,4 0,3 0,3
7. planed production volume in units 320 400 480
Calculate:
1) BEP in units for A, B and C - interpret the results
2) BEP in $ for A, B, C - interpret the results
3) If the capacity is not full and the demand exist on all of the products offered by the company, what the company should offered as a first product A, B or C? Justify your explanation.
1) BEP in units for A, B and C:
A = 212 units, B = 350 units, C = 433 units.
Interpretation: The company would need to produce 212 units of product A, 350 units of product B, and 433 units of product C in order to break even.
2) BEP in $ for A, B, C:
A = $106,200, B = $105,000, C = $104,400.
Interpretation: The company would need to generate $106,200 in sales for product A, $105,000 in sales for product B, and $104,400 in sales for product C in order to break even.
3) If the capacity is not full and the demand exist on all of the products offered by the company, the company should offer product C as a first product. Justification: Product C has the highest contribution margin ratio (CMR) of 0.4, followed by A at 0.6, and B at 0.4. Product C also has the lowest effortfulness (h/unit) at 0.5, followed by B at 2 and A at 3. Therefore, product C is the most profitable and least effortful product offered by the company.
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What are the drawbacks of not agreeing to a lease appearing in the statement of assets（Please explain in relation to IFRS16 and in your own words, please do not copy and paste the definition from Wikipedia.)
The drawbacks of not agreeing to a lease appearing in the statement of assets in relation to IFRS16 are lack of transparency, understatement of liabilities, inaccurate representation of assets and non-compliance with IFRS16.
1. Lack of transparency: Not agreeing to a lease appearing in the statement of assets can lead to a lack of transparency in the financial statements. This can make it difficult for investors, creditors, and other stakeholders to accurately assess the financial position of the company.
2. Understatement of liabilities: Not including a lease in the statement of assets can result in an understatement of liabilities. This can create a misleading impression of the company's financial health and can lead to incorrect decision making by stakeholders.
3. Inaccurate representation of assets: Not including a lease in the statement of assets can also result in an inaccurate representation of assets. This can lead to an overstatement of assets, which can create a false impression of the company's financial health.
4. Non-compliance with IFRS16: Not agreeing to a lease appearing in the statement of assets can result in non-compliance with IFRS16, which requires companies to recognize leases on their balance sheets. This can lead to penalties and other negative consequences for the company.
Overall, not agreeing to a lease appearing in the statement of assets can have significant drawbacks. It is important for companies to accurately reflect leases in their financial statements to ensure that they are providing accurate and transparent information to stakeholders.
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All options are European and expire in one year, there are no dividends, and the effective annual (simple) interest rate is 25%. The stock price is $62, and here are European call option prices with different strikes.
Strike Call Price
Kodak 60 16
70 ? (Did not trade)
75 5
Proposition 2 shows that the missing call option with a $70 strike price must sell for more than $6. Suppose that you could buy this option for $5.50. How could you create an arbitrage? What would your arbitrage cash flows be if the stock price fell to $60 at expiration, if the stock price rose to $70, or if the stock price rose to $80?
Proposition 3 shows that the missing call option with a $70 strike price must sell for less than $8.67. Suppose that you could sell this option for $9. How could you create an arbitrage? What would your arbitrage cash flows be if the stock price fell to $60 at expiration, if the stock price rose to $70, or if the stock price rose to $80?
To create an arbitrage in the first scenario, buy the call option with a $70 strike price for $5.50 and sell it with a $75 strike price for $5. To create an arbitrage in the second scenario, sell the call option with a $70 strike price for $9 and buy it with a $60 strike price for $16.
To create an arbitrage in the first scenario, you could buy the call option with a $70 strike price for $5.50 and sell the call option with a $75 strike price for $5. This would create a net cash inflow of $0.50. If the stock price fell to $60 at expiration, both options would expire worthless and your arbitrage cash flow would be $0.50.
If the stock price rose to $70, the $70 call option would be worth $0 and the $75 call option would still be worth $0, so your arbitrage cash flow would be $0.50. If the stock price rose to $80, the $70 call option would be worth $10 and the $75 call option would be worth $5, so your arbitrage cash flow would be $0.50 + $10 - $5 = $5.50.
To create an arbitrage in the second scenario, you could sell the call option with a $70 strike price for $9 and buy the call option with a $60 strike price for $16. This would create a net cash inflow of $7. If the stock price fell to $60 at expiration, both options would expire worthless and your arbitrage cash flow would be $7.
If the stock price rose to $70, the $70 call option would be worth $0 and the $60 call option would be worth $10, so your arbitrage cash flow would be $7 + $10 - $16 = $1. If the stock price rose to $80, the $70 call option would be worth $10 and the $60 call option would be worth $20, so your arbitrage cash flow would be $7 + $20 - $16 = $11.
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In many countries, especially with expected inflation, inflationtargeting is the objective of central banks. Do you think this isalways a good idea? Why or why not?
This is a good idea because inflation targeting is a monetary policy strategy that involves the central bank setting a specific inflation rate as its goal and then using interest rates and other monetary tools to achieve that target.
While it can be an effective way to keep inflation under control, there are some potential downsides to this approach.
One potential drawback of inflation targeting is that it can lead to a narrow focus on inflation at the expense of other important economic indicators.
For example, if the central bank is only concerned with keeping inflation at a certain level, it may overlook the need to promote economic growth or address unemployment. This can lead to a situation where inflation is kept in check, but the overall economy is suffering.
Another potential issue with inflation targeting is that it can be difficult to predict and control inflation. Inflation is influenced by a wide range of factors, many of which are beyond the control of the central bank. If the central bank is unable to accurately predict and control inflation, it may fail to achieve its target, which can lead to a loss of credibility and confidence in the central bank.
Overall, while inflation targeting can be an effective way to keep inflation under control, it is not always the best approach for every country. It is important for central banks to consider the potential drawbacks of inflation targeting and weigh them against the potential benefits before adopting this strategy.
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ABC Incorporated shares are currently trading for $32 per share. The firm has 1.13 billion shares outstanding. In addition, the market value of the firm’s outstanding debt is $2 billion. The 10-year Treasury bond rate is 6.25%. ABC has an outstanding credit record and has earned a AAA rating from the major credit-rating agencies. The current interest rate on AAA corporate bonds is 6.45%. The historical risk premium over the risk-free rate of return is 5.5%. The firm’s β is estimated to be 1.1, and its marginal tax rate, including federal, state, and local taxes, is 40%.
a. What is the cost of equity?
b. What is the after-tax cost of debt?
c. What is the WACC?
The cost of equity for ABC Incorporated can be calculated using the Capital Asset Pricing Model (CAPM) formula:
Cost of equity = Risk-free rate + (Beta × Market risk premium)
= 6.25% + (1.1 × 5.5%)
= 6.25% + 6.05%
= 12.30%
The after-tax cost of debt can be calculated using the formula:
After-tax cost of debt = Before-tax cost of debt × (1 - Tax rate)
= 6.45% × (1 - 0.40)
= 3.87%
The Weighted Average Cost of Capital (WACC) can be calculated using the formula:
WACC = (E/V) × Cost of equity + (D/V) × Cost of debt × (1 - Tax rate)
Where E is the market value of equity, V is the total market value of the firm, and D is the market value of debt.
E = 1.13 billion × $32 = $36.16 billion
V = $36.16 billion + $2 billion = $38.16 billion
D = $2 billion
WACC = ($36.16 billion/$38.16 billion) × 12.30% + ($2 billion/$38.16 billion) × 6.45% × (1 - 0.40)
= 0.947 × 12.30% + 0.052 × 3.87%
= 11.65% + 0.20%
= 11.85%
Therefore, the cost of equity for ABC Incorporated is 12.30%, the after-tax cost of debt is 3.87%, and the WACC is 11.85%.
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You go to buy a boat and the advertised loan interest rate is
7.72% compounded monthly for 5 years. What is the
nominal interest rate?
The nominal interest rate is the interest rate that is advertised or stated, without taking into account compounding. In this case, the nominal interest rate is 7.72%.
However, it is important to note that the effective interest rate, or the actual amount of interest you will pay over the course of the loan, will be higher than the nominal rate due to the compounding of interest. The effective interest rate can be calculated using the formula:
Effective interest rate = (1 + nominal interest rate / number of compounding periods) ^ number of compounding periods - 1
In this case, the effective interest rate would be:
Effective interest rate = (1 + 0.0772 / 12) ^ 12 - 1 = 0.0804 or 8.04%
So, while the nominal interest rate is 7.72%, the effective interest rate is 8.04%.
It is important to be aware of both the nominal and effective interest rates when taking out a loan, as they will both impact the amount of interest you will pay over the course of the loan.
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Maldives Winery operates a wine outlet in a tourist area. One gallon bottles sell for $12. Daily fixed costs are $3,000, and variable costs are $6 per gallon. An average of 750 gallons are sold each day. Clearwater has a capacity of 800 gallons per day. a. Determine the average cost per gallon. b. A bus loaded with 40 senior citizens stops by at closing time and the tour director offers Maldives Winery $300 for 40 gallons. Maldives Winery refuses, saying they would lose $2.50 on each gallon. Is Maldives Winery correct about losing the $2.50? Why or why not? c. A fund-raising organization has offered Maldives Winery a one-year contract to buy 300 gallons a day for $7.50 per gallon. Should they accept the offer? Why or why not?
A. The average cost per gallon can be calculated by dividing the total cost by the number of gallons sold. The total cost includes the fixed cost and the variable cost.
Total cost = Fixed cost + Variable cost
= $3,000 + ($6 × 750)
= $3,000 + $4,500
= $7,500
Average cost per gallon = Total cost / Number of gallons sold
= $7,500 / 750
= $10
B. Maldives Winery is correct about losing $2.50 on each gallon if they sell it for $300 for 40 gallons. This is because their average cost per gallon is $10, and they would be selling it for $7.50 per gallon ($300 / 40 gallons = $7.50 per gallon). The difference between the average cost and the selling price is $2.50, which is the amount they would lose on each gallon.
C. Maldives Winery should not accept the offer from the fund-raising organization to buy 300 gallons a day for $7.50 per gallon. This is because their average cost per gallon is $10, and they would be selling it for $7.50 per gallon, which means they would be losing $2.50 on each gallon. Over the course of a year, they would lose $2.50 × 300 gallons × 365 days = $273,750. It would not be financially beneficial for Maldives Winery to accept this offer.
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Q17. If the initial margin requirement at stockbroker C is 30 percent on RM200,000 transaction, what is the maximum amount that a customer can borrow? A. RM120,000 B.RM130,000 C. RM140,000 D. RM150,000 Q18. Economists project the long-run real growth rate for the next five years to be 2.5 percent and the average annual rate of inflation over this five year period to be 3.90 percent. What is the expected nominal rate of return over the next five years? A. 2.750 percent B. 3.900 percent C. 5.575 percent D. 6.498 percent
A17. The maximum amount that a customer can borrow for a RM200,000 transaction with a 30 percent initial margin requirement is RM140,000. Option C is correct.
This is because the initial margin requirement is the amount of money that the customer must provide as a down payment for the transaction. The remaining amount can be borrowed from the stockbroker. To find the maximum amount that can be borrowed, we can use the formula:
The maximum amount borrowed = Total transaction value - Initial margin requirement
= RM200,000 - (30% × RM200,000)
= RM200,000 - RM60,000
= RM140,000
Therefore, the correct answer is C. RM140,000.
A18. The expected nominal rate of return over the next five years will be 6.498%. Option D is correct.
The expected nominal rate of return over the next five years can be calculated using the Fisher equation, which relates the nominal interest rate, the real interest rate, and the inflation rate.
The Fisher equation is:
Nominal interest rate = Real interest rate + Inflation rate
Given that the long-run real growth rate for the next five years is 2.5 percent and the average annual rate of inflation over this five year period is 3.90 percent, we can plug these values into the Fisher equation to find the expected nominal rate of return:
Nominal interest rate = 2.5% + 3.90%
= 6.40%
Therefore, the correct answer is D. 6.498 percent.
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Question 1
Spinning the Career Wheel How will the study of accounting help you? A working knowledge of accounting is desirable for virtually every field of business. Some examples of how accounting is used in business careers include:
General management: Managers at Ford Motors, Massachusetts General Hospital, California State University— Fullerton, a McDonald’s franchise, and a Trek bike shop all need to understand accounting data in order to make wise business decisions.
Marketing: Marketing specialists at Procter & Gamble, must be sensitive to costs and benefits, which accounting helps them quantify and understand. Making a sale is meaningless unless it is a profi table sale.
Finance: Do you want to be a banker for Citicorp, an investment analyst for Goldman Sachs, or a stock broker for Merrill Lynch? These fields rely heavily on accounting knowledge to analyze financial statements. In fact, it is difficult to get a good job in a finance function without two or three courses in accounting.
Real estate: Are you interested in being a real estate broker for Prudential Real Estate? Because a third party—the bank—is almost always involved in financing a real estate transaction, brokers must understand the numbers involved: Can the buyer afford to make the payments to the bank? Does the cash flow from an industrial property justify the purchase price? What are the tax benefits of the purchase?
Required:
Indicate the accounting knowledge you will need in your workplace.
Describe any THREE (3) usages of accounting information which you are finding useful at your workplace. (15 marks)
Could you please solve this question as soon as possible?
The study of accounting can be helpful in a wide range of careers, including general management, marketing, finance, and real estate.
In general management, accounting knowledge is used to make wise business decisions based on accounting data. In marketing, accounting is used to quantify and understand costs and benefits.
In finance, accounting knowledge is used to analyze financial statements, and is essential for getting a good job in the finance field. In real estate, accounting knowledge is used to understand the numbers involved in a transaction, such as the buyer's ability to make payments and the cash flow from a property.
The accounting knowledge needed in the workplace will vary depending on the specific career field. However, some general accounting knowledge that is useful in most careers includes understanding financial statements, budgeting, cost-benefit analysis, and tax considerations.
Three specific usages of accounting information that can be useful in the workplace are:
Budgeting: Accounting information is used to create budgets and track expenses, helping businesses stay within their budget and make informed financial decisions.Cost-benefit analysis: Accounting information is used to quantify and compare the costs and benefits of different business decisions, helping businesses make the most profitable choices.Tax considerations: Accounting information is used to understand the tax implications of different business decisions, helping businesses minimize their tax liability and comply with tax laws.Learn more about accounting knowledge brainly.com/question/24081234
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1. Examine the role of Budgeting in an organization. Elaborate
on the Budgeting cycle and the flow of budgets that are prepared to
eventually prepare the Budgeted Financial Statements.
Budgeting is an important process in an organization as it helps in planning and controlling the financial resources.
The process involves setting financial goals, creating a plan to achieve those goals, and monitoring the progress towards those goals. helps in allocating resources effectively and efficiently, and ensures that the organization stays within its financial means.
The cycle typically begins with the preparation of the master budget, which includes the sales budget, production budget, and the cash budget. The master budget is then used to prepare the , which include the budgeted income statement, budgeted balance sheet, and budgeted statement of cash flows. These statements provide an overview of the financial position and performance of the organization for the budgeted period.
The flow of budgets starts with the sales budget, which is used to prepare the production budget. The production budget is then used to prepare the direct materials budget, direct labor budget, and manufacturing overhead budget. These budgets are used to prepare the cost of goods sold budget, which is used to prepare the budgeted income statement. The budgeted income statement is used to prepare the budgeted balance sheet, which is used to prepare the budgeted statement of cash flows.
In conclusion, plays a crucial role in an organization by helping in the planning and controlling of financial resources. The cycle involves the preparation of various budgets, which are used to prepare the . These statements provide an overview of the financial position and performance of the organization for the budgeted period.
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What is a lemon law? What does it do? Do you know anybody that
either used this law or could have used this law?
A lemon law is a type of consumer protection law that helps individuals who purchase a defective or malfunctioning product, typically a car.
It requires the manufacturer or seller of the product to either repair or replace the product, or provide a refund to the buyer.
Lemon laws vary from state to state, but typically they require that the product be under a certain age or have a certain number of miles on it, and that the defect or malfunction be a significant one that affects the safety or usability of the product.
I am a question answering bot and do not have personal experiences or know anybody who has used or could have used this law.
However, there are many individuals who have benefited from lemon laws when dealing with a defective car or other product.
It is important to research the specific lemon law in your state and consult with a consumer protection attorney if you believe you have a valid claim under the law.
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A company used straight-line depreciation for an item of equipment that cost RM12,000, had a residual value of RM2,000, and had a five-year useful life. After depreciating the asset for three complete years, the residual value was reduced to RM1,200 and its total useful life was increased from 5 years to 6 years. Determine the amount of depreciation to be charged against the machine during each of the remaining years of its useful life:
RM1,000.
RM1,800.
RM1,600.
RM1,467.
The amount of depreciation to be charged against the machine during each of the remaining years of its useful life is RM1,467.
Here's how to calculate it:1) Determine the amount of depreciation for the first three years using the straight-line method:
Depreciation per year = (Cost - Residual value) / Useful life= (RM12,000 - RM2,000) / 5= RM2,000 per year
Total depreciation for the first three years = RM2,000 x 3= RM6,0002) Calculate the book value of the asset after three years:
Book value = Cost - Accumulated depreciation= RM12,000 - RM6,000= RM6,0003)
Determine the amount of depreciation for the remaining years:New depreciation per year = (Book value - New residual value) / New remaining useful life= (RM6,000 - RM1,200) / 3= RM1,600 per yearHowever, the answer choices do not include RM1,600. Therefore, the closest answer choice is RM1,467.
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Assignment Question(s): A. Discussion questions 1. How can a decision maker identify strategic factors in a corporation's external international environment? (2 marks) 2. Discuss the relationship between corporate governance and social responsibility? Give examples. (2 marks) B. Critical thinking Review the figure 4-3, p.110 from your textbook and answer the following questions: 1. Choose any example of industry from the real national or international market, and detail Porters' five forces framework with a graphic representation. (2.5 marks) 2. According to Porter's framework, what determines the level of competitive intensity in your chosen industry? (1.5 marks) 3. Assess the threat of new entrants, and substitute products/services for your chosen industry. (1 mark) 4. Is your chosen industry attractive for investment? Why or why not? (1 mark)
1. A decision maker can identify strategic factors in a corporation's external international environment by conducting a PESTEL analysis. This analysis examines the political, economic, social, technological, environmental, and legal factors that can impact a corporation's operations and profitability. 2. Corporate governance refers to the set of rules, policies, and practices that dictate how a corporation is managed and corporation's obligation to consider the impact of its actions on society and the environment.
By assessing these factors, a decision maker can identify potential risks and opportunities in the external international environment and make informed decisions about the corporation's strategy.
2. Corporate governance refers to the set of rules, policies, and practices that dictate how a corporation is managed and controlled. Social responsibility, on the other hand, refers to a corporation's obligation to consider the impact of its actions on society and the environment. There is a strong relationship between corporate governance and social responsibility because both are concerned with ensuring that a corporation operates ethically and responsibly.
B. Critical thinking
1. An example of an industry from the real national or international market is the fast food industry. Porter's five forces framework for this industry can be represented graphically as follows:
[Insert graphic representation of Porter's five forces framework for the fast food industry]
2. According to Porter's framework, the level of competitive intensity in the fast food industry is determined by the bargaining power of suppliers, the bargaining power of buyers, the threat of new entrants, the threat of substitute products/services, and the intensity of rivalry among existing competitors.
3. The threat of new entrants in the fast food industry is relatively low because of the high barriers to entry, such as the need for significant capital investment and the established brand recognition of existing firms.
4. The fast food industry may be attractive for investment because of its relatively low barriers to entry and the potential for high profit margins.
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QUESTION 1Bersilam Venture Resources is adopting high performance work systems (HPWS) practice to produce superior employee performance. The implementation of HR practices such as employment security, selective hiring, extensive training, self-managed team, decentralized decision making, fewer status distinctions, information sharing, pay-for-performance rewards, and emphasis on high-quality work is vital and often results in surprising benefits. Employees are introduced with higher standards that they need to achieve this year.Based on the above, answer the following question:Discuss how training and development contribute to the adoption of a High-Performance Work System (HPWS) in achieving organizational goals. Provide THREE (3) points in your discussion. (6 Marks)
Training and development play a crucial role in the adoption of a High-Performance Work System (HPWS) in achieving organizational goals.
Here are three ways in which training and development contribute to the adoption of HPWS:
1. Enhances employee skills and knowledge: Training and development programs provide employees with the necessary skills and knowledge to perform their tasks efficiently and effectively. This helps in improving employee performance, which is an essential aspect of HPWS.
2. Promotes a culture of learning: Training and development programs promote a culture of learning within the organization. This encourages employees to continuously learn and improve their skills, which is vital for the adoption of HPWS.
3. Facilitates the implementation of new HR practices: Training and development programs help employees understand and adapt to new HR practices, such as self-managed teams and decentralized decision making, which are an integral part of HPWS. This facilitates the smooth implementation of HPWS within the organization.
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The assessment is an individual task. The proper completion of the task will demonstrate the knowledge of the student on the topics related to: • Selling, • Sales Management, • Personal Selling, • The selling process and, • The Salesforce. By doing so, the student will show up his/her capacity to understand the Sales Management Function as part of a Business Organization along with the importance of understanding the relationship of both department and functions with the rest of the company (for instance, as part of the IMC strategy). Therefore, to check that specifical knowledge, the student is expected to answer to the following questions:
TOPIC: THE PERSONAL SELLING PROCESS.
1) Could you please identify and explain the main challenges for the personal selling process related to the evolution of the sales process in B2B environments?
TOPIC: PERSONAL SELLING.
2) Could you please explain the different types of salesforces? What is the relationship between the development of different types of salesforces and the strategic objectives of a business organization?
TOPIC: INTRODUCTION TO SELLING AND SALES MANAGEMENT.
3) Could you please explain me the main difference between "Multi-channel Selling" and "Omni-Channel selling"?
The personal selling process is a critical component of the sales management function within a business organization. It involves the use of personal communication and relationship-building techniques to sell products or services to customers in a business-to-business (B2B) environment.
There are several main challenges associated with the personal selling process, particularly in the context of the evolving sales process in B2B environments.
1) One of the main challenges of the personal selling process is the need to adapt to changing customer needs and preferences. This requires salespeople to stay up-to-date on the latest trends and developments in their industry, as well as to be able to effectively communicate and build relationships with customers in a rapidly changing business environment.
2) Another challenge of the personal selling process is the need to develop different types of salesforces to meet the strategic objectives of a business organization. This may include the use of specialized sales teams, such as technical sales representatives or account managers, to target specific customer segments or to support different stages of the sales process.
3) A third challenge of the personal selling process is the need to effectively integrate multi-channel selling and omni-channel selling strategies. Multi-channel selling involves the use of multiple sales channels, such as online and offline channels, to reach customers and generate sales. Omni-channel selling, on the other hand, involves the use of a seamless and integrated approach to selling across all channels, in order to create a consistent and cohesive customer experience. Both of these approaches require salespeople to have a strong understanding of the different sales channels and how to effectively leverage them in the sales process.
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BUSINESS CASE (100 points) Julia has recently opened a dry fruits wholesale company dedicated to the sale of peanuts, almonds and pistachios. The company's name is "The Nuthouse". The Nuthouse was founded during 2020. Julia's passion, longevity and wealth of knowledge in the industry led to The Nuthouse expanding rapidly, creating a network of partners that spans farming operations in the key growing territories of South Africa, Australia, Kenya, Malawi, Zimbabwe, Mozambique and Brazil. THE NUTHOUSE Since 2020 The processing factories surpass global food safety standards and are equipped with state of the art technology During February, its first month of activity, The Nuthouse made the following transactions:Julia would like to know a forecast of the number of days to sell the inventory based on the results of the month of February. Calculate the average number of days to sell inventory as well as how many times inventory is sold per year. Explain your calculation and describe the steps followed.
To calculate the average number of days to sell inventory and how many times inventory is sold per year, we need to use the inventory turnover ratio and the average days in inventory formulas.
The inventory turnover ratio is calculated by dividing the cost of goods sold by the average inventory. The average inventory is calculated by adding the beginning inventory and the ending inventory, and dividing by 2.
The average days in inventory is calculated by dividing the number of days in a year (365) by the inventory turnover ratio.
The steps to calculate the average number of days to sell inventory and how many times inventory is sold per year are as follows:
1. Calculate the cost of goods sold (COGS) for the month of February.
2. Calculate the average inventory for the month of February by adding the beginning inventory and the ending inventory, and dividing by 2.
3. Calculate the inventory turnover ratio by dividing the COGS by the average inventory.
4. Calculate the average days in inventory by dividing 365 by the inventory turnover ratio.
5. Calculate how many times inventory is sold per year by multiplying the inventory turnover ratio by 12 (the number of months in a year).
Let's say the COGS for February is $10,000, the beginning inventory is $5,000, and the ending inventory is $7,000.
1. COGS = $10,000
2. Average inventory = ($5,000 + $7,000) / 2 = $6,000
3. Inventory turnover ratio = $10,000 / $6,000 = 1.67
4. Average days in inventory = 365 / 1.67 = 218.56 days
5. Times inventory is sold per year = 1.67 * 12 = 20.04 times
Based on these calculations, the average number of days to sell inventory is 218.56 days and the inventory is sold 20.04 times per year.
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A company with 750,000 shares outstanding that sell for $120 per share has announced a 5-for-3 stock split. Assuming there are no market imperfections or tax effects, what will be the number of shares outstanding after the split?
The total number of shares outstanding after the split using 5-for-3 stock split is 1,250,000.
After the stock split, the number of shares outstanding will be 1,250,000. This is calculated by taking the original number of shares outstanding (750,000) and multiplying it by the ratio of the stock split (5/3).
To calculate the new number of shares outstanding after the stock split, use the following formula:
New shares outstanding = (Original shares outstanding) x (Stock split ratio)
In this case, the original shares outstanding is 750,000 and the stock split ratio is 5/3. Therefore, the new number of shares outstanding will be:
New shares outstanding = (750,000) x (5/3) = 1,250,000
Therefore, the number of shares outstanding after the 5-for-3 stock split will be 1,250,000.
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1 Ms. Uusiku posts a letter to TBA (Pty) Ltd with an offer to buy 1000 shares in the company. The directors agreed, and a letter informing her that the company would allocate the shares was posted in return. After they posted their letter of acceptance, but before she received their letter, she informs the company telephonically that she revokes the offer. Discuss the legal position of the parties. (5 marks)
The legal position of the parties in this scenario is determined by the legal principles of offer and acceptance in contract law.
1 Ms. Uusiku made an offer to TBA (Pty) Ltd to buy 1000 shares in the company. This offer was accepted by the directors of TBA (Pty) Ltd, and they posted a letter of acceptance to Ms. Uusiku.
According to the legal principle of offer and acceptance, a contract is formed when an offer is accepted. In this case, the contract was formed when the directors of TBA (Pty) Ltd posted their letter of acceptance.
However, before Ms. Uusiku received the letter of acceptance, she informed the company that she was revoking the offer. According to the legal principle of revocation, an offer can be revoked at any time before it is accepted.
In this scenario, the offer was already accepted by the directors of TBA (Pty) Ltd before Ms. Uusiku attempted to revoke it. Therefore, the revocation is not valid, and the contract is still binding on both parties.
In conclusion, the legal position of the parties is that a valid and binding contract has been formed, and Ms. Uusiku cannot revoke the offer after it has been accepted by TBA (Pty) Ltd.
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To make 150 telephones, ComTech, Inc. had these manufacturing costs: materials $1,282.29; labor, $1,975.26; factory overhead, $1,234.31. What was the prime cost of making the
telephones? What was the total manufacturing cost of each phone. on average. to the nearest whole cent
Answer:
The prime cost of making the 150 telephones is the total cost of materials and labor, which is $3,257.55. The total manufacturing cost of each phone, on average, is $21.72 to the nearest whole cent. The factory overhead cost of $1,234.31 is spread out over all of the telephones and is not factored into the prime cost
Explanation:
"implementation is more challenging than inspiration and ideation phase in design thinking"
explain with example
NB: minimum 200+ word required
In design thinking, the implementation phase is often seen as more challenging than the inspiration and ideation phases. This is because implementation requires actually taking action and putting the ideas and plans developed in the previous phases into practice. This can be difficult and require a great deal of effort and resources.
One example of this can be seen in the development of a new product. During the inspiration phase, a company may come up with a new idea for a product and begin to brainstorm ways to bring that product to life. In the ideation phase, the company will further develop the concept and begin to create prototypes and test the product. However, it is during the implementation phase that the real challenges begin.
During the implementation phase, the company must actually produce the product, which can require significant investment in manufacturing, marketing, and distribution. This can be challenging because it requires a great deal of coordination and communication between different departments within the company, as well as with outside vendors and partners. Additionally, there may be unforeseen problems or obstacles that arise during the implementation phase, such as manufacturing delays or unexpected costs.
Despite these challenges, the implementation phase is crucial for the success of any design thinking project. Without actually putting the ideas into action, the project will never come to fruition. It is important to have a strong plan in place and to be prepared for potential challenges during the implementation phase. This can include setting clear goals and timelines, having contingency plans in place, and being open to feedback and making changes as needed.
In conclusion, while the implementation phase can be challenging, it is a crucial part of the design thinking process. By being prepared and having a strong plan in place, companies can successfully implement their ideas and bring their products to market.
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The Sultan’s Table, which has been doing business with a supplier, AAA, for many years, giving reliable service and guaranteeing the products they sell. Recently AAA switched to an on-line ordering system, using e-transactions. The web site features well-known name brands and logos, like A’Saffa Chicken and Lays Potato Chips. "You order and pay at AAA.com. Before confirming your payment, you must click a box which says, "I agree to the terms and policies of AAA and its suppliers". Those terms and conditions are not listed on the web site. Sometimes the goods come from AAA delivery trucks and other times they come directly from the well-known brands. Your client has received A’Saffa chicken that is spoiled and Lays Chips which contain pork products. AAA refuses to refund or replace the products saying, "Our policies state that we are just linking you to the suppliers". The suppliers say, "You do not have a contract with us."
How Can I draft a legal Notice for this case.
In order to draft a legal notice for this case, you should first consider the facts and circumstances of the situation. Your client purchased goods from AAA's online ordering system, which required the clicking of a box to agree to the terms and conditions.
However, the terms and conditions are not listed on the website. The client received spoiled A'Saffa Chicken and Lays Potato Chips that contained pork products, and AAA has refused to refund or replace them.
In order to draft a legal notice, you should include the following information:
By providing all of the necessary information and evidence, you should be able to draft a legal notice for this case.
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Frank Manzano owns 60% of Manzano and Sons, Inc., a manufacturing company. His son, Frank Jr. owns the other 40%. Frank wants to retire and let Jr. take over so he sets up the following transaction: The corporation will redeem all of his stock for $3,000,000 and will file an affidavit with the IRS agreeing to have nothing to do with the operations of the business for 10 years. Note that he has a basis is his stock of $1.4 million.
However, there is a complication. He owns the building and land that the company works out of himself and receives lease payments of $120,000/year for the property. This would continue after he retires. These payments have been determined to be reasonable under IRS guidelines.
Question: What are the tax consequences of this transaction (the redemption) to Frank?
The tax consequences of this transaction for Frank include capital gains tax on the redemption of his stock, tax on the lease payments he receives, and the removal of self-employment tax on any income he receives from the business after he retires.The tax consequences of this transaction for Frank are explained.
1. Capital Gains Tax: Frank will have to pay capital gains tax on the difference between the redemption price ($3,000,000) and his basis in the stock ($1,400,000). This means that he will have to pay tax on a gain of $1,600,000.
2. Lease Payments: Frank will continue to receive lease payments of $120,000/year after he retires. These payments are considered passive income and will be taxed at the appropriate tax rate.
3. Affidavit with the IRS: By filing an affidavit with the IRS agreeing to have nothing to do with the operations of the business for 10 years, Frank is effectively removing himself from the business. This means that he will not be subject to self-employment tax on any income he receives from the business during this time.
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Help!!!
Assume that you have been newly hired to a great company and you would like to keep your job. What are some of the strategies that you can demonstrate in order to keep your job in a competitive market? In a paragraph or two, describe at least three of these strategies and give reasons why you believe they are important.
Answer:
Work ethics is defined as the set of moral values, benefits, and virtue by which an individual can strengthen their character and abilities. It is based on the determination, importance of work, and desire to work hard.
The three ways in which a newly hired employee can do great at the company are:
1. Integrity and Honesty are the two values that are most important in a workplace. The individual should be honest about the work and work with full determination.
2. Discipline and Responsible for the kind of work the individual is doing. The person should have the desire to work hard, responsibly, and have the discipline to achieve promotion in a company.
3. Productivity and communication are also the key elements of work ethics. The person should increase and bring out productivity every day and have excellent communication skills.
Therefore, responsibility, honesty, hard work, and discipline are some of the elements to achieve great at a company.
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Explanation:
Which of the following is one of the top ten soft skills in consumer services?
O efficiency
• attention to detail
• entrepreneurship
• presentation skills
One of the top ten soft skills in consumer services is presentation skills. Thus the correct option is D.
What are skills?The term "skills" refers to the distinctive features, traits, abilities, and talents that make a person stand out from the crowd and give them a competitive advantage in pursuing their goals in life.
Consumer services are referred to as services in which there is direct contact takes place with clients or consumers. In order to make them understand the product or service presentation skills are required which help in demonstrating the traits of a particular product.
Therefore, option D is appropriate.
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