The internal consistency reliability of the creativity test can be measured using Cronbach's alpha. A reliability of 0.40 means that 40% of the variance in the test scores is due to true differences in creativity among the applicants, while the remaining 60% is attributed to measurement error or other factors.
The negative correlation of -0.40 between extraversion (the test) and productivity does not inherently indicate the validity of the test.
To assess the internal consistency reliability of the creativity test, Cronbach's alpha is employed. This statistical measure evaluates the consistency of the test's questions in measuring the same construct, which in this case is creativity. By administering the test to a sample of Zayed University applicants and analyzing the data, the resulting Cronbach's alpha value provides insights into the reliability of the test. A reliability coefficient of 0.40 suggests that 40% of the variability in the test scores can be attributed to genuine differences in creativity among the applicants, while the remaining 60% is attributable to factors such as measurement error or other influences.
The negative correlation of -0.40 between extraversion (the test) and productivity does not inherently indicate the validity of the test.
Assessing the validity of a test requires considering whether the observed correlation aligns with existing theory or research. In this case, if extraversion is typically associated with higher productivity, a negative correlation of -0.40 would suggest that the test lacks validity. However, if there is theoretical justification or empirical evidence supporting a negative relationship between extraversion and productivity, then the test may be deemed valid. It is crucial to examine additional validity evidence, such as content validity, criterion validity, and construct validity, to obtain a comprehensive assessment of the test's validity. These measures evaluate whether the test adequately covers relevant aspects of extraversion, predicts productivity accurately, and aligns with the overall theoretical framework. Hence, further investigation is necessary to determine the validity of the extraversion test in relation to productivity.
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By definition, dumping involves: a. the sale of goods by a foreign firm at a price below cost or below the price charged in the firm's home-base market. b. the sale of goods by a domestic firm at a price below cost, resulting in the elimination of competitors in the domestic market. c. the sale of goods by a domestic firm at a price that ensures supernormal profits for the firm in the short run. d. the sale of goods by a foreign firm at a price that equals its marginal cost of production.
The definition of dumping is a: the sale of goods by a foreign firm at a price below cost or below the price charged in the firm's home-base market.
Dumping refers to the practice of selling goods in a foreign market at a price that is lower than the cost of production or lower than the price charged in the home market.
This can be a strategic move by a foreign firm to gain a competitive advantage or to eliminate competition in the target market. In the case of dumping, a foreign firm may sell its goods at a price below the cost of production.
By doing so, it can drive out competitors in the foreign market who are unable to match such low prices. This can lead to market dominance and potentially allow the dumping firm to later increase prices once competitors are eliminated.
Dumping involves the sale of goods by a foreign firm at a price below cost or below the price charged in the firm's home-base market. This practice can have various impacts on the market, including the elimination of competitors and potential market dominance.
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Question 33 What is the discount rate? O the amount of cash banks must keep on hand at any given time O the interest rate charged to banks on reserves borrowed from the Federal Reserve O the interest rate banks charge each other for reserves borrowed from another bank O the interest rate the Fed pays on reserves stored in the federal funds market Question 34 What is the newest money supply tool available to the Fed? O open market operations O the reserve requirement ratio O the discount rate O the interest rate paid on reserves held at the Fed Question 35 Which statement about money is true? O As long as it is generally accepted in exchange for services and goods, anything can be money. O To qualify as money, currency must be officially recognized by a government. O The term money refers to metallic coins and paper currency legally designated by some institution. O Aside from precious metals, commodities cannot be considered money.
33. The discount rate is the interest rate charged to banks on reserves borrowed from the Federal Reserve.
Discount rateserves as a tool for the Federal Reserve to control the money supply and influence the lending activities of banks. By adjusting the discount rate, the Federal Reserve can encourage or discourage banks from borrowing funds and thereby impact the overall availability of credit in the economy.
When the discount rate is low, it becomes cheaper for banks to borrow from the central bank, leading to increased liquidity in the banking system. This can stimulate lending and economic growth as banks have more funds to lend to businesses and consumers. Conversely, when the discount rate is high, borrowing becomes more expensive for banks, which can result in reduced lending and tighter credit conditions in the economy.
34. The newest money supply tool available to the Federal Reserve is the interest rate paid on reserves held at the Fed.
This tool, known as the interest on excess reserves (IOER), was introduced as part of the policy response to the financial crisis in 2008. It allows the Federal Reserve to pay interest to banks on the excess reserves they hold at the central bank.
By adjusting the IOER rate, the Federal Reserve can influence the incentives for banks to either lend their excess reserves or keep them with the central bank. Increasing the IOER rate can encourage banks to hold more reserves, thereby reducing the availability of funds for lending and potentially tightening monetary conditions.
35. Regarding the statement about money, the correct one is that as long as it is generally accepted in exchange for services and goods, anything can be money.
Money is not limited to a specific form, such as metallic coins or paper currency. It can take various forms, including physical currency, electronic balances in bank accounts, and even digital cryptocurrencies. The essential characteristic of money is its acceptance as a medium of exchange in economic transactions.
While governments play a crucial role in establishing and regulating official currencies, the concept of money extends beyond government-issued currencies, as long as it fulfills the function of facilitating transactions and is widely accepted by individuals and businesses.
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Apparently, all three advisors have studied economics, but their views on positive economics are different.
a. with rent control, the government guarantees landlords a minimum level of profit.
b. they become resigned to the fact that many of their apartments are going to be vacant at any given time
c. with shortages and waiting lists, they have no incentive to maintain and improve their property.
d. with rent control, it becomes the government's responsibility to maintain rental housing.
The three advisors have different views on the effects of rent control in the context of positive economics. Advisor A believes that with rent control, the government guarantees landlords a minimum level of profit. Advisor B suggests that landlords become resigned to the fact that many of their apartments will be vacant at any given time. Advisor C argues that with shortages and waiting lists, landlords have no incentive to maintain and improve their property. Lastly, Advisor D contends that with rent control, it becomes the government's responsibility to maintain rental housing.
The differing views among the advisors highlight the diverse perspectives on the economic implications of rent control.
Advisor A's view suggests that rent control guarantees landlords a minimum level of profit, indicating that the government intervenes to ensure landlords can maintain their desired level of profitability despite price controls.
On the other hand, Advisor B's perspective emphasizes the negative impact of rent control, implying that landlords may accept high vacancy rates due to restricted rent prices. This viewpoint reflects the notion that landlords might choose to keep apartments vacant rather than rent them out at lower prices mandated by the government.
Advisor C's argument focuses on the potential consequences of shortages and waiting lists resulting from rent control. The viewpoint suggests that landlords may have little incentive to invest in property maintenance and improvement when demand for rental housing exceeds supply, leading to a decline in property quality.
Lastly, Advisor D's perspective highlights the shift in responsibility from landlords to the government in terms of maintaining rental housing when rent control is implemented.
Overall, these differing views demonstrate the complexity of rent control as an economic policy and how it can impact landlords and rental markets in various ways.
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With reference to a product or service of your choice, describe
any four (4) key criteria that you would consider for selecting
suppliers.
When selecting suppliers, four key criteria to consider are quality and reliability, cost and pricing, supplier's financial stability, and ethical and sustainable practices.
These criteria ensure the delivery of high-quality products or services, competitive pricing, stable supply chains, and alignment with ethical and sustainable principles.
When selecting suppliers for a product or service, there are several key criteria to consider. Here are four important criteria that can help guide the supplier selection process:
1. Quality and Reliability: Ensuring the quality of the product or service is crucial, as it directly affects customer satisfaction and brand reputation. Evaluating a supplier's track record, certifications, and quality control processes can help determine their ability to consistently deliver high-quality products or services.
2. Cost and Pricing: Assessing the cost and pricing structure of potential suppliers is essential to ensure competitiveness and profitability. It involves comparing prices, negotiating contracts, and understanding the supplier's pricing model, including any additional costs such as shipping or taxes.
3. Supplier's Financial Stability: Understanding the financial stability of a supplier is important to mitigate the risk of disruption in the supply chain. Evaluating the supplier's financial health, payment terms, and creditworthiness can provide insights into their ability to meet ongoing commitments and invest in their own operations for long-term sustainability.
4. Ethical and Sustainable Practices: Increasingly, businesses are prioritizing suppliers that demonstrate ethical and sustainable practices. This includes factors such as fair labor practices, environmental responsibility, adherence to regulatory standards, and social impact. Assessing a supplier's commitment to these areas can align with the values and goals of the buying organization.
It is worth noting that the specific criteria may vary depending on the nature of the product or service, industry requirements, and the organization's strategic priorities. Conducting thorough research, requesting proposals, and engaging in discussions with potential suppliers can provide deeper insights into their capabilities and alignment with the desired criteria.
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1. According the Kant’s categorial imperative, it is acceptable for a company to gather and use consumer information if both sides are in agreement regarding their rights and responsibilities.
A. True
B False
2. When the tobacco companies covered up the fact that they were deliberately marking to teens, they were violating which AMA standard?
A. Honesty
B. Fairness
C. Transparency
D. All of These
E. Just Transparency and Honesty
F. None of These
1. According the Kant’s categorial imperative, it is acceptable for a company to gather and use consumer information if both sides are in agreement regarding their rights and responsibilities.False.
According to Kant’s categorical imperative, it is ethical if the proposed action could be done without contradiction to everyone being involved and that the people involved should be treated as an end rather than the means to an end. The customers' informed consent is not enough to make it ethically acceptable for a company to collect and use consumer information.
2. When the tobacco companies covered up the fact that they were deliberately marking to teens, they were violating which AMA standard?The correct option for this question is D. All of These.
The American Marketing Association (AMA) sets ethical standards for advertising, and these standards are utilized by marketing professionals.
Honesty, fairness, and transparency are all essential standards that should be upheld by marketers. When the tobacco companies covered up the fact that they were deliberately marketing to teenagers, they violated all of these standards. They were dishonest by not being truthful about their marketing practices.
They were unfair because they targeted a vulnerable population, and they were not transparent about their marketing techniques. As a result, they misled their customers, which is a violation of the AMA's marketing standards.
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T/F The Euclidean distance between two objects is always smaller than or equal to the Manhattan distance between the same two objects. Assume that the two objects have only numeric attributes.
2.True or False? A clustering algorithm can be used to identify different groups of consumers, based on which customized advertisements can be created.
1.The Euclidean distance between two objects is always smaller than or equal to the Manhattan distance between the same two objects. Assume that the two objects have only numeric attributes is a false statement. 2nd statement is True.
1. The statement "False" is true for this case. Euclidean distance and Manhattan distance are measures of distance in a multi-dimensional space, but they are calculated using different formulas. They are equal only when the dimensions are either two or three. The Euclidean distance is defined as the square root of the sum of the squared differences between the coordinates of two points, while the Manhattan distance is defined as the sum of the absolute differences between the coordinates of two points. As a result, the Euclidean distance between two objects is always larger than or equal to the Manhattan distance between the same two objects.
2. The statement "True" is true for this case. Clustering is the process of dividing data points into a specified number of groups, or clusters, so that data points in the same cluster are more similar to one another than to data points in other clusters. Clustering can be used to divide consumers into different groups based on their buying habits, preferences, or other characteristics, and then create customized advertisements or marketing campaigns for each group. By identifying the key features or attributes that distinguish one group of consumers from another, businesses can target their marketing efforts more effectively, resulting in higher conversion rates and customer satisfaction.
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Define the notions of ‘functional’ and ‘dysfunctional’ discrimination as they apply the workplace context. Using examples published in online news sources in 2021, demonstrate the differences between the two types of discrimination. Describe TWO (2) strategies that managers can employ to prevent dysfunctional discrimination in the workplace.
In the workplace context, functional discrimination refers to policies or practices that are intentionally designed to achieve a legitimate business objective, while dysfunctional discrimination refers to unjustifiable actions that result in unfair treatment or disadvantage to certain individuals or groups.
Functional discrimination in the workplace refers to actions or policies that have a legitimate purpose and are directly related to achieving business objectives. These practices are typically justifiable and do not unfairly disadvantage or treat individuals or groups. For example, if a job position requires specific technical skills or qualifications, it is functional discrimination to prioritize candidates who possess those qualifications during the hiring process. This type of discrimination is based on merit and directly supports the organization's goals.
On the other hand, dysfunctional discrimination refers to unjustifiable actions or policies that result in unfair treatment or disadvantage for certain individuals or groups. It occurs when personal characteristics, such as race, gender, age, or disability, become the basis for differential treatment. Dysfunctional discrimination can manifest in various forms, such as biased promotion decisions, unequal pay based on gender, or exclusion from opportunities for advancement. Unlike functional discrimination, dysfunctional discrimination lacks legitimate business justification and undermines fairness and equality in the workplace.
To prevent dysfunctional discrimination, managers can employ several strategies. One strategy is to implement diversity training programs that promote awareness, understanding, and respect for different backgrounds and perspectives. These programs can help employees recognize their biases, challenge stereotypes, and foster an inclusive work environment. Additionally, managers can establish clear anti-discrimination policies that explicitly state the organization's commitment to equal treatment and prohibit any form of discriminatory behavior. These policies should be communicated effectively to all employees and enforced consistently. By implementing these strategies, managers can create a workplace culture that values diversity, promotes fairness, and prevents dysfunctional discrimination.
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How does the factor price equalization theory hold true and not
true. explain and provide examples.
The factor price equalization theory suggests that in a perfectly competitive global market, the prices of factors of production (such as labor and capital) will equalize across countries, leading to an equalization of factor returns.
However, this theory does not always hold true due to various factors such as differences in factor endowments, trade barriers, and market imperfections. While the theory provides a useful framework for understanding international trade, its assumptions may not fully reflect the complexities of the real world.
The factor price equalization theory argues that in the absence of trade barriers, factors of production will earn the same returns across countries. For example, if Country A has a higher wage rate than Country B, firms in Country A will find it more cost-effective to relocate to Country B, resulting in an increase in the demand for labor in Country B and a decrease in the demand for labor in Country A. This movement of factors will eventually lead to an equalization of factor prices.
However, in reality, several factors can hinder the equalization of factor prices. Firstly, differences in factor endowments, such as natural resources or skilled labor, can create disparities in factor prices across countries. For instance, a country rich in oil reserves may have higher returns for its natural resources compared to countries without such endowments. Secondly, trade barriers, such as tariffs or quotas, can distort factor prices by restricting the flow of goods and services. These barriers can protect domestic industries and prevent factor price equalization. Additionally, market imperfections, such as imperfect competition or labor market rigidities, can contribute to differences in factor prices.
In conclusion, while the factor price equalization theory provides a theoretical framework for understanding international trade, it does not always hold true in practice. Factors such as differences in endowments, trade barriers, and market imperfections can create variations in factor prices across countries. It is important to consider these complexities when analyzing the impacts of international trade on factor returns.
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SP Pointer Construction is considering whether or not to undertake a project that would expand its current operations. Based on the cash flows listed below and with a required rate of return of 14%, what's the NPV of this project? Round your answer to the nearest dollar. Year 0: -$50,000 Year 1: $20,000 Year 2: $35,000 Year 3: $42,000
The company is analyzing whether or not to expand their current operations with cash flows of -$50,000, $20,000, $35,000, and $42,000 in years 0, 1, 2, and 3 respectively. The required rate of return is 14%, calculate the NPV of the project.
The Net Present Value (NPV) is used to determine the viability of an investment or project by calculating the present value of all future cash flows at a particular discount rate. It is calculated as the present value of future cash flows minus the initial investment. NPV is a vital tool for making decisions because it takes into account the time value of money. If the NPV is positive, it means that the investment is worthwhile, while a negative NPV means that the investment is not worthwhile.
The formula for calculating NPV is:
NPV = (Cash flow / (1 + r)t)
Where:
CF = Cash Flow
r = discount rate
t = time period
Year 0 = -$50,000
Year 1 = $20,000
Year 2 = $35,000
Year 3 = $42,000
Using the NPV formula, we can calculate the NPV of the project as follows:
NPV = (-$50,000 / (1 + 0.14)0) + ($20,000 / (1 + 0.14)1) + ($35,000 / (1 + 0.14)2) + ($42,000 / (1 + 0.14)3)
NPV = -$50,000 + $17,543 + $26,564 + $27,080
NPV = $21,187
Therefore, the NPV of the project is $21,187 when rounded to the nearest dollar.
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Current Ratio and Quick Ratio use some of the same data for their calculations. Which of the following statements is frue? Multcle Choice Quick ratios include inventory in the calculation The lower the current reso, the more liquid the company appears to be Quick ratos tend to be a larger percentage raso then current rasos Quick ratios are expected to be a smaller rabo than current rasos
Quick ratios are expected to be a smaller ratio than current ratios. because inventory is excluded from the calculation, resulting in a narrower measure of liquidity.
The quick ratio, also known as the acid-test ratio, is a more stringent measure of a company's liquidity compared to the current ratio. It focuses on the most liquid assets by excluding inventory from the calculation. The formula for the quick ratio is: Quick Ratio = (Current Assets - Inventory) / Current Liabilities
Since the quick ratio excludes inventory, it provides a more conservative measure of a company's ability to meet short-term obligations. By excluding inventory, it assumes that inventory may not be easily convertible to cash in the short term. Quick ratios do not include inventory in the calculation; inventory is excluded. The lower the current ratio, the less liquid the company appears to be, not more liquid.
Quick ratios are generally expected to be a smaller ratio than current ratios because inventory is excluded from the calculation, resulting in a narrower measure of liquidity.
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.Sunland Products, a rapidly growing distributor of home gardening equipment, is formulating its plans for the coming year. Joseph Moore, the firm's marketing director, has completed the following sales forecast.
Month Sales Month Sales
January $920.000 July $1.170.000
february $1.020.000 August $1.500.000
March $920.000 September $1.600.000
April $1.020.000 October $1.600.000
May $870.000 November $1.500.000
Juni $970.000 Desember $1.700.000
charles wilson , an accountant in the planning and budgeting department, is responsible for preparing the cash flow projection. he has gathered the following information .
1. all sales are made on credit.
The sales forecast provided indicates the projected monthly sales for Sunland Products throughout the year.
The sales forecast shows the estimated sales for each month of the year. It provides a valuable tool for planning and budgeting purposes. The forecast indicates the expected sales revenue that Sunland Products anticipates generating in each specific month. It is important to note that all sales are made on credit, meaning that customers are allowed to make purchases without immediate payment and will be required to pay at a later date.
This information is crucial for Charles Wilson, the accountant in the planning and budgeting department, as he prepares the cash flow projection. By knowing that all sales are made on credit, Wilson can accurately estimate the timing of cash inflows based on the projected sales figures and the expected collection periods for the credit sales. This helps in forecasting and managing the company's cash flow throughout the year.
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Sang Copension proces Direct materiale copes at 1 le pet. The standard costs per pound) Direct labor (2 hours at $20 per hour) 10 During November, 8000 units were produced. The costs associated with November operations were as follows Material purchased (36.000 pounds at 50.60 per pound) $21,600 Material used in production (28,000 pounds) Direct labor (18,400 hours at $9.75 per hour) 179,400 Variable manufacturing overhead incurred 110,400 What is the variable overhead spending variance for the product for November? O$30,400 Favorable O $30,400 Unfavorable O$ 18,400 Unfavorable O$ 18,400 Favorable 30
Correct option is $30,400 favorable.To calculate the variable overhead spending variance, we need to compare the actual variable overhead costs incurred with the budgeted or standard variable overhead costs.
Standard variable overhead cost per unit:
Variable manufacturing overhead per unit = $10
Actual variable overhead cost for November = Variable manufacturing overhead incurred = $110,400
Variable Overhead Spending Variance = Actual variable overhead cost - (Standard variable overhead cost per unit * Units produced)
= $110,400 - ($10 * 8,000)
= $110,400 - $80,000
= $30,400
The variable overhead spending variance for the product for November is $30,400, indicating a favorable variance. Therefore, the correct answer is $30,400 favorable.
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When volatility increases with all else remaining the same, describe briefly what is the impact on the value of a call and put option respectively. 9 A stock price (which pays no dividends) is $50 and the strike price of a two year
When volatility increases with all else remaining the same, the impact on the value of a call and put option respectively is described as follows.
What is it?There are several types of options, including put options and call options. The price of an option varies depending on the underlying asset's market price.
The price of an option is influenced by several factors, including volatility. The price of an option is affected by volatility, and if all else is held constant, an increase in volatility leads to an increase in the price of both put and call options.
Briefly, an increase in volatility will increase both the price of a call option and the price of a put option.
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On January 1, 2020, Metlock Company issued 10-year, $2,160,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 14 shares of Metlock common stock. Metlock's net income in 2020 was $470,800, and its tax rate was 20%. The company had 107,000 shares of common stock outstanding throughout 2020. None of the bonds were converted in 2020. (a) Compute diluted earnings per share for 2020. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share $ (b) Compute diluted earnings per share for 2020, assuming the same facts as above, except that $1,070,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Metlock common stock. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share $
(a) To compute diluted earnings per share (EPS) for 2020 with the convertible bonds, we need to calculate the potential impact if all the bonds were converted into common stock. Since none of the bonds were converted in 2020, the diluted EPS will be the same as basic EPS.
Net Income: $470,800
Weighted Average Shares Outstanding: 107,000
Diluted EPS = Net Income / Weighted Average Shares Outstanding
Diluted EPS = $470,800 / 107,000 = $4.39
Therefore, the diluted earnings per share for 2020, considering the convertible bonds, is $4.39.
(b) To compute diluted EPS for 2020 with the convertible preferred stock, we calculate the potential impact if all the preferred stock was converted into common stock.
Net Income: $470,800
Weighted Average Shares Outstanding: 107,000
Convertible Preferred Stock: $1,070,000
Conversion Ratio: 5 shares of common stock for each preferred share
Convertible Preferred Shares: $1,070,000 / $100 = 10,700 shares
Additional Common Shares: 10,700 shares x 5 = 53,500 shares
Adjusted Weighted Average Shares Outstanding: 107,000 + 53,500 = 160,500
Diluted EPS = Net Income / Adjusted Weighted Average Shares Outstanding
Diluted EPS = $470,800 / 160,500 = $2.93
Therefore, the diluted earnings per share for 2020, assuming the convertible preferred stock, is $2.93.
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Lendell Company has these comparative balance sheet data:
LENDELL COMPANY Balance sheets December 31
2017 2016
Cash 15000 30000
Accounts receivable 70000 60000
Inventory 60000 50000
Plant assets net 200000 180000
345000 320000
Accounts payable 50000 60000
Mortgage payable 15% 100000 100000
Common stock $10 par 140000 120000
Retained earnings 55000 40000
345000 320000
Additional Information for 2017:
Net income was $25,000.
Sales on account were $375,000.
Sales returns and allowances amounted to $25,000.
Cost of goods sold was $198,000.
Net cash provided by operating activities was $48,000.
Capital expenditures were $25,000, and cash dividends were $10,000.
Compute the following ratios at December 31, 2017. Round current ratio to 2 decimal places, and all other answers to 1 decimal place, Use 365 days for calculation.
a. Current ratio _______:1
b. Accounts receivable turnover _______times
c. Average collection period _______days
d. Inventory turnovefr _______times
e. Days inventory _______days
f. Free cash flow $_______
The answers to the following ratios based on the given data:
a. Current Ratio: 2.9:1
b. Accounts Receivable Turnover: 5.38 times
c. Average Collection Period: 67.83 days
d. Inventory Turnover: 3.6 times
e. Days Inventory: 101.39 days
f. Free Cash Flow: $13,000
let's calculate the values using the given data:
a. Current Ratio:
Current Assets = Cash + Accounts Receivable + Inventory = 15000 + 70000 + 60000 = $145,000
Current Liabilities = Accounts Payable = $50,000
Current Ratio = Current Assets / Current Liabilities = $145,000 / $50,000 = 2.9:1
b. Accounts Receivable Turnover:
Net Credit Sales = Sales on Account - Sales Returns and Allowances = $375,000 - $25,000 = $350,000
Average Accounts Receivable = (Accounts Receivable for 2017 + Accounts Receivable for 2016) / 2 = ($70,000 + $60,000) / 2 = $65,000
Accounts Receivable Turnover = Net Credit Sales / Average Accounts Receivable = $350,000 / $65,000 = 5.38 times
c. Average Collection Period:
Average Collection Period = 365 days / Accounts Receivable Turnover = 365 days / 5.38 = 67.83 days
d. Inventory Turnover:
Cost of Goods Sold = $198,000
Average Inventory = (Inventory for 2017 + Inventory for 2016) / 2 = ($60,000 + $50,000) / 2 = $55,000
Inventory Turnover = Cost of Goods Sold / Average Inventory = $198,000 / $55,000 = 3.6 times
e. Days Inventory:
Days Inventory = 365 days / Inventory Turnover = 365 days / 3.6 = 101.39 days
f. Free Cash Flow:
Net Cash Provided by Operating Activities = $48,000
Capital Expenditures = $25,000
Cash Dividends = $10,000
Free Cash Flow = Net Cash Provided by Operating Activities - Capital Expenditures - Cash Dividends = $48,000 - $25,000 - $10,000 = $13,000
Therefore, the calculated values are:
a. Current Ratio: 2.9:1
b. Accounts Receivable Turnover: 5.38 times
c. Average Collection Period: 67.83 days
d. Inventory Turnover: 3.6 times
e. Days Inventory: 101.39 days
f. Free Cash Flow: $13,000
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Prepare the issuer's journal entry for each of the following separate transactions, a. On March 1, Atlantic Company issues 47,000 shares of $3 par value common stock for $311,000 cash. b. On April 1, OP Company issues no-par value common stock for $79,000cosh. c. On April 6, MPG issues 2,900 shares of $20 par value common stock for $48,000 of inventory, $180,000 of machinery, and acceptance of a $98,000 note payable. Journal entry worksheet Record the issuance of 47,000 shares of $3 par value common stock for $311,000 cash. Note: Enter debits before credits. Journal entry worksheet Record the issuance of no-par value common stock for $79,000 cash. Note: Enter debits before credits. Journal entry worksheet Record the issuance of 2,900 shares of $20 par value common stock for $48,000 of inventory, $180,000 of machinery, and acceptance of a $98,000 note payable. Note: Enter debits before credits.
a. On March 1, Atlantic Company issues 47,000 shares of $3 par value common stock for $311,000 cash. b. On April 1, OP Company issues no-par value common stock for $79,000 cash. c. On April 6, MPG issues 2,900 shares of $20 par value common stock for $48,000 of inventory, $180,000 of machinery, and acceptance of a $98,000 note payable.
a. On March 1, Atlantic Company issues 47,000 shares of $3 par value common stock for $311,000 cash.
Cash 311,000
Common Stock 141,000
Additional Paid-in Capital 170,000
b. On April 1, OP Company issues no-par value common stock for $79,000 cash.
Cash 79,000
Common Stock 79,000
c. On April 6, MPG issues 2,900 shares of $20 par value common stock for $48,000 of inventory, $180,000 of machinery, and acceptance of a $98,000 note payable.
Inventory 48,000
Machinery 180,000
Notes Payable 98,000
Common Stock 58,000
Additional Paid-in Capital 168,000
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Question Completion Status All, Basel and Ziad are sharing income and loss in a 4:32 ratio respectively and decided to liquidate their partnership Prior to the final dubbution of cash to the partes. A fa balance of $(10,000), Basel has a captal balance of $24,000, and Ziad has a capital balance of $30,000. Also, cach balance is $50.000 Al is NOT able to pay the amount he ees the partnership. Which of the following two journal entries are right to record this liquidation case? OA Basel Capital 4.000 Ziad Capital 5.000 10,000 Basel capital 18,000 32.000 Ziad capital Cash 50,000 08 Basel Capital 6,000 Ziad Capital 4.000 10,000 Basel capital 18,000 33.000 Ziad capital Cash 50,000 OC Basel Capital 4,000 ziad Capital 4.000 All Capital 10.000 32,000 Basel capital Ziad capital Cash 18.000 50.000 5,000 0Basel Capital 5.000 Ziad Capital 10,000 All Capital 19.000 Basel capital zad capital $1,000 50,000 All Capital Als Capital
The correct journal entries to record this liquidation case would be:
Option C:
Debit: Basel Capital $4,000
Debit: Ziad Capital $4,000
Credit: All Capital $10,000
Credit: Basel Capital $32,000
Credit: Ziad Capital $18,000
Credit: Cash $50,000
In this entry, Al's capital balance is allocated to Basel and Ziad in their respective profit-sharing ratio, and the remaining cash is distributed to all partners according to their capital balances.
Please note that the information provided in the question does not specify the amount that Al owes to the partnership. If there is a specific amount owed by Al, it should be recorded separately as a debit to Al's capital and a credit to Cash in the journal entry.
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In the presence of free riders, the equilibrium allocation of any good will be:
Select one:
a. zero
b. less than optimal.
c. optimal
d. more than optimal.
In the presence of free riders, the equilibrium allocation of any good will be less than optimal.
A free rider is someone who benefits from a public good without contributing to its funding. People often become free riders because they know that others will pay for the public good, allowing them to reap the benefits without incurring any expenses. The equilibrium allocation of a good is the quantity of that good that is purchased and sold in the market at the equilibrium price. The presence of free riders has a detrimental impact on the quantity of a good that is sold and purchased.
As a result, the equilibrium allocation of any good will be less than optimal in the presence of free riders. Public goods are goods that are non-excludable, which means that people cannot be excluded from using them, and non-rival, which means that one person's use of the good does not detract from another person's use of the good. Public goods are difficult to price since they are non-excludable. This implies that people who use the good are not required to pay for it, leading to free riding. If a good is underfunded, its quantity will be reduced, resulting in an allocation that is less than optimal. Therefore, the equilibrium allocation of any good will be less than optimal in the presence of free riders.
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During 2021, HESTA super fund earned a return of 1% p.a by making the following investments in asset classes:
weight Return (p.a)
Bonds 20% 5%
stocks 80% 0%
The return on a benchmark portfolio was 2% p.a., calculated from the following information.
weight Return (p.a)
Bonds (ASX Index) 50% 5%
Stocks (ASX Index) 50% -1%
The contribution of asset allocation across markets to the HESTA Super fund's annual total abnormal return wa:
The contribution of selection within markets to the HESTA Super fund's annual total abnormal return was ____
To calculate the contribution of asset allocation across markets and the contribution of selection within markets to the HESTA Super fund's annual total abnormal return, we need to compare the fund's actual return with the benchmark portfolio return.
The HESTA Super fund's actual return is 1% p.a., while the benchmark portfolio return is 2% p.a.
The contribution of asset allocation across markets can be calculated by taking the difference between the actual return and the benchmark return weighted by the respective asset class weights:
Contribution of asset allocation = (Actual return - Benchmark return) * Weight
For the HESTA Super fund:
Contribution of asset allocation = (1% - 2%) * (20% + 80%) = -0.01
So, the contribution of asset allocation across markets to the HESTA Super fund's annual total abnormal return is -0.01 or -1%.
The contribution of selection within markets can be calculated by taking the difference between the actual return and the benchmark return within each asset class weighted by their respective weights:
Contribution of selection within markets = (Actual return - Benchmark return within each asset class) * Weight within each asset class
For the HESTA Super fund:
Contribution of selection within markets = (5% - 5%) * 20% + (0% - (-1%)) * 80% = 0
So, the contribution of selection within markets to the HESTA Super fund's annual total abnormal return is 0 or 0%.
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in Measurements for Global Supply Chain not in supply chain
(Why measure?, What to measure?, How to measure?)
Measurements are vital in global supply chains to monitor performance, identify areas for improvement, and make informed decisions, focusing on efficiency, reliability, responsiveness, and sustainability.
Why Measure?
1. Performance Evaluation: Measurements help assess the performance of the global supply chain and its various components, such as suppliers, transportation, warehousing, and customer service. This evaluation enables companies to identify bottlenecks, inefficiencies, and areas of improvement.
2. Benchmarking: Measurements allow organizations to compare their supply chain performance against industry standards or best practices. Benchmarking helps identify gaps and areas where improvements are required to stay competitive and achieve operational excellence.
3. Decision Making: Measurements provide objective data that supports decision-making processes. They help in evaluating alternative strategies, assessing the impact of potential changes, and selecting the most suitable course of action based on data-driven insights.
4. Risk Management: Measurements help identify and assess risks within the global supply chain. By monitoring metrics related to quality, lead time, inventory, and customer satisfaction, companies can proactively identify potential risks and develop strategies to mitigate them.
What to Measure?
1. On-time Delivery: Measure the percentage of orders delivered on time to customers. This metric reflects the reliability and efficiency of the supply chain in meeting customer expectations.
2. Cycle Time: Measure the time it takes for a product to move through the entire supply chain, from procurement to delivery. This metric helps identify bottlenecks and inefficiencies, enabling process improvements and faster order fulfillment.
3. Inventory Turnover: Measure the number of times inventory is sold or used within a specific period. This metric reflects the effectiveness of inventory management and indicates how efficiently the supply chain is utilizing its resources.
4. Order Accuracy: Measure the accuracy of order fulfillment, including the percentage of orders shipped without errors or discrepancies. This metric reflects the quality of order processing and the effectiveness of the supply chain in meeting customer requirements.
5. Cost-to-Serve: Measure the total cost incurred to fulfill customer orders, including procurement, transportation, warehousing, and customer service costs. This metric helps assess the cost efficiency of the supply chain and identify opportunities for cost reduction.
How to Measure?
1. Define Metrics: Identify and define the relevant metrics based on the organization's goals and objectives. Ensure that the metrics align with strategic priorities and provide actionable insights.
2. Data Collection: Establish a data collection mechanism to capture relevant information for each metric. This may involve leveraging existing systems (such as enterprise resource planning software) or implementing specialized tools for data capture.
3. Data Analysis: Analyze the collected data to generate meaningful insights. This can involve techniques such as data visualization, trend analysis, and statistical analysis to identify patterns, anomalies, and areas for improvement.
4. Reporting and Communication: Present the measurement results in a clear and concise manner, using visualizations and reports that are easily understandable by stakeholders. Regularly communicate the findings to relevant teams and management to drive decision-making and improvement initiatives.
5. Continuous Improvement: Use the measurement results to identify areas for improvement and develop action plans. Implement changes and monitor the impact of those changes through ongoing measurement and evaluation to ensure continuous improvement in the global supply chain.
It's important to note that the specific measurements and approaches may vary based on the organization's industry, supply chain complexity, and strategic objectives. Regular review and refinement of the measurement framework is crucial to ensure its relevance and effectiveness in driving supply chain performance improvement.
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The complete question is: Why is it important to measure in global supply chains, what aspects should be measured, and how can these measurements be conducted effectively?
On June 4, Marie Company had cash sales rung up by cashiers totaling $126,500. Cash in the drawer was counted and found to be $138,000. The journal entry to record the sales for June 4, would include a:
Multiple Choice
credit to Sales Revenue for $138,000.
debit to Cash for $126,500.
credit to Cash Overage for $11,500.
debit to Sales Revenue for $126,500.
The journal entry to record the sales for June 4, would include a debit to Cash for $126,500. The correct option is debit to Cash for $126,500.
A journal entry is a formal record used to transfer an entry from one account to another. It's a bookkeeping technique for tracking and analyzing company transactions. A journal entry includes the account name, the amount of the debit or credit, and the date of the transaction. To make a journal entry, follow the instructions below:1. To begin, write down the date on which the transaction occurred. On June 4, Marie Company had cash sales rung up by cashiers totaling $126,500. Cash in the drawer was counted and found to be $138,000.
2. Choose the accounts that will be debited and credited as a result of the transaction.3. Calculate the amounts to be debited and credited and then enter them into the journal.4. Use double-entry bookkeeping principles to guarantee that all transactions are recorded properly.
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In the Vendor Compliance at Geoffrey Ryan Case, Melisa the Supply Chain Packaging Manager in preparation of her meeting with the President and Chief Merchandising Officer, Keith Hughes, and his Retail Furniture Team, she calculated the trend in division sales, COGS, Gross Profit, SG&A, and EBIT. What should Melisa do based on the division numbers and why should she do it?
Melisa, the Supply Chain Packaging Manager, should calculate the trend in division sales, COGS, Gross Profit, SG&A, and EBIT based on the division numbers.
Melisa should develop an analysis of key vendor performance metrics such as lead time, fill rate, on-time delivery, and quality performance. This would help her identify vendors with the highest order volume and the greatest quality risks, which would enable her to prioritize compliance efforts and engage with vendors to address compliance-related issues.
It is essential for Melisa to do this because it would help her to create vendor scorecards that provide visibility into vendor performance and compliance-related risks. It would also allow her to assess the impact of vendor performance on the division's financials and help her to develop strategies to reduce costs, improve quality, and enhance compliance.
The analysis of vendor performance metrics would enable her to identify trends and areas for improvement, which she could use to negotiate with vendors to improve performance and compliance. In summary, based on the division numbers, Melisa should develop an analysis of key vendor performance metrics to identify vendors with the highest order volume and the greatest quality risks, create vendor scorecards that provide visibility into vendor performance and compliance-related risks, assess the impact of vendor performance on the division's financials, and develop strategies to reduce costs, improve quality, and enhance compliance.
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2. solve the recurrence relation with the given initial conditions: for , .
The recurrence relation is given by: an = 3an−1 + 2an−2. The initial conditions are a0 = 1, a1 = 2. To solve the recurrence relation, we first write the characteristic equation and find its roots.
The recurrence relation is given by: an = 3an−1 + 2an−2.
The initial conditions are
a0 = 1, a1 = 2.
To solve the recurrence relation, we first write the characteristic equation and find its roots: r2 - 3r - 2 = 0
Solving the above equation gives us:
r1 = 3.73205 and r2 = -0.73205
Using these roots, we can write the general solution as an = c1 (3.73205)n + c2 (-0.73205)n
where c1 and c2 are constants.To find the values of c1 and c2, we use the initial conditions:a0 = c1 + c2 = 1a1 = 3.73205c1 - 0.73205c2 = 2Solving the above two equations simultaneously gives us:c1 = 0.69413 and c2 = 0.30587Therefore, the solution to the recurrence relation with the given initial conditions is:
an = 0.69413 (3.73205)n + 0.30587 (-0.73205)n
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Studies have shown that improvements in quality can lead to Multiple Choice A higher total cost as additional costs are spent to improve quality. Lower productivity because of the need to meet a higher quality standard Increases in throughput time. Increases in productivity
Improvements in quality can lead to Increases in productivity.Studies have shown that when improvements are made in quality, it increases the productivity of the workers.
As the quality of the products improves, there is a better flow of work which allows the workers to finish their tasks in a shorter period of time.Therefore, Increases in productivity is the answer that best suits the question.Productivity gains might result from quality improvements.Studies have demonstrated that raising quality results in a rise in worker productivity. The efficiency of the work flow improves as product quality rises, enabling the employees to complete their assignments faster.As a result, the optimum response to the question is increases in production.
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Answer the following in the space provided Wat are the attributes of a "good" econometric model? B) What are the consequences of omitting a relevant variable(s) from a model? C) What are the consequences of including irrelevant variables in a model?
A) Attributes of a good econometric model The attributes of a good econometric model are: Unbiasedness Efficiency Consistency Goodness of fit Stability and robustness Ability to forecast
B) Consequences of omitting a relevant variable(s) from a model The consequences of omitting a relevant variable(s) from a model are as follows: The estimated coefficients of the remaining variables can be biased, Inefficient, and inconsistent. Furthermore, the estimates of the model parameters may not be accurate, the econometric model of the model may be diminished, and the model may be mis specified. Therefore, failing to include all relevant variables will jeopardize the integrity of the model and the accuracy of its results.
C) Consequences of including irrelevant variables in a model The consequences of including irrelevant variables in a model are as follows: There is a risk that the estimated coefficients of the relevant variables will be biased and less efficient. The goodness of fit of the model will also be impaired. Including too many irrelevant variables in a model can lead to overfitting, making the model overly complex and harder to interpret. Furthermore, including variables that have no meaningful relationship with the dependent variable might result in model misspecification and false inferences. Therefore, it is essential to consider the theoretical framework of the model, the nature of the data, and the relationship between the variables when selecting which variables to include in a model.
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1) The fractional banking system used in New Zealand is key to the process of creating money used by the Reserve Bank of New Zealand (RBNZ). This involves a number known as the Reserve Ratio (RR), which is the fraction of deposits commercial banks keep in reserve with the Reserve Bank. The money multiplier is also important to this process, as it represents the 'flow on effects of money entering the economy that is not kept in reserve. [Ref: Notes 7-1, 7-21 a) Let us assume that the RR for commercial banks is 25%. Now, the RBNZ injects $2 million worth of money into the monetary base through the commercial banks. How much of this initial injection of money is kept in reserve? How much is lent out to the rest of the economy? b) What is the value of the money multiplier associated with this RR? c) Using the money multiplier, work out the total money increase of the $2 million injection d) What are the three functions of money? Please describe each function briefly.
The answer is, the amount lent out to the rest of the economy is 5,00,000$.
How to find?Reserve Ratio (RR) = 25%,
Initial injection of money = $2 million ,
Amount kept in reserve = RR × Initial injection of money
= 25/100 × 2,000,000
= $500,000.
Amount lent out to the rest of the economy = $2,000,000 - $500,000 = $1,500,000
b) What is the value of the money multiplier associated with this RR?
Money multiplier = 1 / Reserve Ratio
= 1 / 0.25
= 4
c) Using the money multiplier, work out the total money increase of the $2 million injection.
Total money increase = Money multiplier × Initial injection of money
= 4 × $2,000,000
= $8,000,000
d) What are the three functions of money?Money has three primary functions, which are:
Medium of exchange:
It implies that money acts as an intermediary in the exchange of goods and services.
It is a universally accepted medium of exchange that eliminates the need for barter system.
Unit of account:
Money serves as a measure of value or unit of account.
It is a standardized unit for comparing the costs of goods and services in an economy.
Store of value:
Money also serves as a store of value.
It implies that money can be used to store value over time, enabling people to conserve their wealth for future use.
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Applying the Charter John Nesbitt is an accounting clerk, employed by the municipality of Anytown, Alberta, in the town's financial services department. Like all municipalities, the town has an elected group of councilors and a mayor, who meet to set policy and enact bylaws under the authority of the Municipal Government Act of the province. A bylaw is a type of subordinate legislation. The town employs a large group of employees, from those who work out of doors maintaining streets and roads, to those who work in the town hall itself, serving the public and managing the complex business affairs of the municipality. Following a recent election, the newly elected mayor and councilors embark on a plan that, in their view, will improve the organizational culture of the staff and managers employed by the town. Two new complimentary bylaws are introduced and passed: the first bylaw makes it a requirement that all full-time, permanent employees of the municipality are required to reside within town limits. The motive for this bylaw is to demonstrate that the town is a good place to live, and employees who earn a living working for the town should be expected to live in the town. The second bylaw states that no full-time, permanent employee of the town is permitted to publicly criticize the decisions of town council. John Nesbitt lives with his family on an acreage sometres outside of the town corporate limits. He is a full-time, permanent employee who has worked for Anytown in the finances department for more than seven years, and he has no desire to move his residence or to seek new employment. Nesbitt writes a letter to the editor of the local newspaper; the letter is published, and is critical of the new residency requirement bylaw governing employees of the municipality. Nesbitt's supervisor advises him that he should write a letter of retraction to the newspaper, and asks what his intentions are regarding his future employment with the town. Nesbitt seeks legal counsel from a lawyer who believes that court action against the municipality, under the Charter of Rights and Freedoms, is warranted. Question 2 Not yet answered Marked out of 5.00 Flag question If, instead of being employed by a municipality, Nesbitt is an accounting clerk employed by a private business, explain whether he can use the Charter to question the validity of employment regulations made by his employer that appear to offend his rights. What other legislation provides protections to employees?
If employed by a private business, Nesbitt cannot use the Charter to question employment regulations, but other legislation provides protections.
The Charter of Rights and Freedoms is a constitutional document that protects individuals' rights and freedoms from actions taken by the government or public authorities. It does not directly apply to private businesses or employers. Therefore, if John Nesbitt is employed by a private business, he cannot rely on the Charter to challenge the validity of employment regulations made by his employer. However, there are other legislation and protections that provide rights and safeguards to employees in the private sector. Employment standards legislation, such as the Employment Standards Act, varies by jurisdiction and sets minimum standards for employment conditions, including minimum wage, hours of work, overtime pay, vacation entitlements, and termination rights. Additionally, human rights legislation at the provincial or federal level prohibits discrimination in employment based on protected grounds, such as race, gender, age, religion, or disability. Employees who believe their rights have been violated can file complaints with human rights commissions or tribunals. It is essential for employees to understand their rights and consult with legal counsel or relevant authorities to determine the appropriate course of action in addressing potential infringements on their rights in the private sector.
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John is trying to decide on how many copies of a book to order at the start of the upcoming selling season for a bookstore. The book retails at $28.00, and the unsold copies will be disposed at 75% off the retail price at the end of the season. John estimates that demand for this book during the season is normal with a mean of 100 and a standard deviation of 42.
(a) Suppose the unit production-plus-shipping cost of the book is $8.00. If the bookstore is owned by the publisher (i.e., the bookstore and the publisher are centralized) and John is the manager of the bookstore, then how many books should John order to maximize the expected profit of the publisher? [10 pts]
(b) If the bookstore is owned by John and he purchases the book from the publisher at $20.00, then how many books should John order to maximize his own expected profit? [10 pts]
Suppose John owns the bookstore. The publisher is thinking of offering the following deal to John. At the end of the season, the publisher will buy back unsold copies at a predetermined price of $15.00. John would have to bear, however, the cost of shipping unsold copies back to the publisher at $1.00 per copy.
(c) How many books should John order to maximize his expected profits given the buyback offer? [10 pts]
(d) Suppose the publisher continues to charge $20 per book and John still incurs a $1 cost to ship each book back to the publisher. What price should the publisher pay John for returned books to maximize the supply chain’s profit? [10 pts]
(a) Suppose the unit production-plus-shipping cost of the book is $8.00. If the bookstore is owned by the publisher (i.e., the bookstore and the publisher are centralized) and John is the manager of the bookstore, then the number of books John should order to maximize the expected profit of the publisher is given by the following formula
\[\overline{x} = \mu+\frac{z_{\alpha/2}\sigma}{\sqrt{n}}\]Here,\[\mu=100\]and\[\sigma =42\]So, the optimal order size, x, is: \[x = \overline{x} = 100+\frac{z_{\alpha/2}\times 42}{\sqrt{n}}\]where\[\alpha =1-0.9 = 0.1\]and\[{z_{\alpha/2}} = z_{0.05} = 1.645\]Again,\[C = 28-8 = 20\]Therefore, the expected profit for the publisher is given by:\[\pi (x) = \left[ {20 - \left( {100 + \frac{{1.645 \times 42}}{\sqrt n }} \right)} \right]x\]To maximize the publisher's profit, we need to determine the order size x that maximizes the expected profit function. Therefore, taking the derivative of the profit function and equating it to zero gives:\[\frac{d\pi (x)}{dx} = 20 - \left( {100 + \frac{{1.645 \times 42}}{\sqrt n }} \right) - \frac{{1.645 \times 42}}{\sqrt n } = 0\]Solving the above equation gives\[n = \frac{{\left( {1.645 \times 42} \right)^2 }}{{(20 - 100)^2 }} \approx 177\]So, John should order 177 books to maximize the expected profit of the publisher.(b) If the bookstore is owned by John and he purchases the book from the publisher at $20.00, then how many books should John order to maximize his own expected profit?The expected demand is normal with \[\mu=100\]and \[\sigma=42\]The bookstore would purchase each book at a cost of $20. Therefore, the gross profit per book would be: \[G = 28 - 20 = 8\]The expected gross profit of John is:\[\pi (x) = G\left( {\min \left( {D,x} \right)} \right) - \left( {20\left( {\min \left( {D,x} \right)} \right)} \right)\]where D is the demand for the book. We can calculate the value of x that maximizes π (x) as follows:\[\pi (x) = G\left( {\min \left( {D,x} \right)} \right) - \left( {20\left( {\min \left( {D,x} \right)} \right)} \right)\]Take derivative with respect to x, set to zero and solve for x. \[\frac{d\pi (x)}{dx} = \left\{ {\begin{array}{*{20}{c}}G&{0 \le x \le D}\\0&{D \le x}\end{array}} \right.\]So, we should order x = D books if 0 ≤ D ≤ x, i.e., when D ≤ x; otherwise we should order x = 0 books. Hence, to maximize his expected profit, John should order x books if x ≤ D and order D books otherwise. This is equivalent to ordering\[\min (x,D)\]books.(c) Suppose John owns the bookstore. The publisher is thinking of offering the following deal to John. At the end of the season, the publisher will buy back unsold copies at a predetermined price of $15.00. John would have to bear, however, the cost of shipping unsold copies back to the publisher at $1.00 per copy.If we denote the expected demand by D, then the net profit for each book sold is given by\[G = 28 - 20 = 8\]The expected net profit for each unsold book that is returned to the publisher is\[P = 15 - 1 - 20 = - 6\]Therefore, the expected profit per book is\[\pi (x) = G\left( {\min \left( {D,x} \right)} \right) + P\max \left( {0,x - D} \right) - 20x\]where x is the order size. Taking the derivative of π (x) and setting it equal to zero, we have:\[\frac{d\pi (x)}{dx} = \left\{ {\begin{array}{*{20}{c}}G&{0 \le x \le D}\\P&{x > D}\end{array}} \right. - 20 = 0\]If x ≤ D, then the optimal order size is\[\min (D,\frac{G + 20}{G - P})\]If x > D, then the optimal order size is\[D\]If G ≤ P, then the optimal order size is 0(d) Suppose the publisher continues to charge $20 per book and John still incurs a $1 cost to ship each book back to the publisher. The supply chain's profit is given by\[S = (p - c)q - f\left( {x - q} \right)\]where p is the price charged by John for each book that is returned to the publisher, c is John's cost per book, q is the number of books that are returned, x is the total number of books ordered, and f is the shipping cost per book. We can calculate the value of p that maximizes S by taking the derivative of S with respect to p and setting it equal to zero:\[\frac{{dS}}{{dp}} = q - \frac{{dq}}{{dp}}f = 0\]Solving for p yields\[\frac{{dp}}{{dq}} = \frac{f}{1 + \frac{1}{\eta }} = \frac{1}{0.75} = 1.\overline{3}\]Therefore,\[p = c + \frac{{f\left( {x - q} \right)}}{q + \frac{1}{\eta }} = 20 + \frac{{1\left( {200 - q} \right)}}{q + \frac{1}{0.75}}\]Taking the derivative of p with respect to q and setting it equal to zero gives:\[\frac{{dp}}{{dq}} = 0\]Solving for q yields\[q = \frac{5}{4} \times 50 = 62.5\]Rounding up, we have q = 63. Therefore, the publisher should pay John $11.11 for each book that is returned to the publisher in order to maximize the supply chain's profit.
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a. John should order 90 copies of the book to maximize the expected profit of the publisher.
b. John should order 116 copies of the book to maximize his expected profit.
c. John should order 94 copies of the book to maximize his expected profit.
d. The publisher should pay John $80.00 for each returned book to maximize the expected profit of the supply chain.
(a) The expected demand of the book is 100 copies, and the standard deviation of demand is 42. The retail price of the book is $28.00, and the unit production-plus-shipping cost of the book is $8.00. The bookstore's profit P can be calculated by the formula below:P = (28 − 8)x − 0.75(max {0, x − 100})(28 × 0.75 − 8)where x is the order quantity of the book. The second term of the equation, 0.75(max {0, x − 100})(28 × 0.75 − 8), represents the loss of the bookstore due to unsold copies. Here, John is the manager of the bookstore, but the bookstore is owned by the publisher. Therefore, the expected profit of the publisher can be calculated by the formula below:E(P) = (28 − 8)x − 0.75(max {0, x − 100})(28 × 0.75 − 8) − 20xwhere 20x represents the cost of goods sold (COGS) to the bookstore by the publisher. We can maximize the expected profit of the publisher by differentiating E(P) with respect to x and setting it to zero. d[E(P)]/dx = 28 − 8 − 0.75(0 + x − 100) (0.75 × 28 − 8) − 20 = 0x = 90. Therefore, John should order 90 copies of the book to maximize the expected profit of the publisher.
(b) In this scenario, John owns the bookstore, and the publisher sells the book to John for $20.00. Therefore, the expected profit of John can be calculated by the formula below: E(P) = (28 − 20)x − 0.75(max {0, x − 100})(28 × 0.75 − 20) where 20x represents the cost of goods sold (COGS) to John by the publisher. We can maximize the expected profit of John by differentiating E(P) with respect to x and setting it to zero. d[E(P)]/dx = 28 − 20 − 0.75(0 + x − 100) (0.75 × 28 − 20) = 0x = 116. Therefore, John should order 116 copies of the book to maximize his expected profit.
(c) In this scenario, the publisher will buy back unsold copies at a predetermined price of $15.00, and John would have to bear the cost of shipping unsold copies back to the publisher at $1.00 per copy. Therefore, the expected profit of John can be calculated by the formula below: E(P) = (28 − 20)x − (0.75(max {0, x − 100})(28 × 0.75 − 15) + (1 + 20 − 15)max {0, 100 − x})where the first term of the equation represents the revenue from selling the book, the second term represents the loss due to unsold copies, and the third term represents the cost of shipping unsold copies back to the publisher. We can maximize the expected profit of John by differentiating E(P) with respect to x and setting it to zero.d[E(P)]/dx = 28 − 20 − 0.75(0 + x − 100)(0.75 × 28 − 15) + (1 + 20 − 15)(−1) = 0x = 94. Therefore, John should order 94 copies of the book to maximize his expected profit.
(d) In this scenario, the publisher continues to charge $20 per book, and John still incurs a $1 cost to ship each book back to the publisher. Let P be the price that the publisher pays John for the returned books. Therefore, the expected profit of the supply chain can be calculated by the formula below: E(P) = (20 − P)(max {0, 100 − x}) − (20 − 8 + 1)x, where the first term of the equation represents the revenue from returned books, and the second term represents the COGS. We can maximize the expected profit of the supply chain by differentiating E(P) with respect to P and setting it to zero. d[E(P)]/dP = −max {0, 100 − x} + (20 − P)(−d[max {0, 100 − x}]/dP) = 0max {0, 100 − x} = 20 − P. Therefore, the publisher should pay John $80.00 for each returned book to maximize the expected profit of the supply chain.
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In general costs directly by the level of responsibility are to the responsibility level are while costs that are
In general, costs directly by the level of responsibility are proportional to the responsibility level, while costs that are indirect are not directly proportional to the level of responsibility. Responsibility level can be defined as the extent of control and decision-making authority an individual has in an organization. When an individual has a higher level of responsibility, he or she is accountable for more tasks, decisions, and resources that are required to complete the tasks. Therefore, the costs that are directly attributable to the individual's level of responsibility will be higher.
In general, costs directly by the level of responsibility are proportional to the responsibility level, while costs that are indirect are not directly proportional to the level of responsibility. Responsibility level can be defined as the extent of control and decision-making authority an individual has in an organization. When an individual has a higher level of responsibility, he or she is accountable for more tasks, decisions, and resources that are required to complete the tasks. Therefore, the costs that are directly attributable to the individual's level of responsibility will be higher. This can include costs related to salaries, bonuses, benefits, training, and other expenses associated with the individual's role. On the other hand, indirect costs are costs that are not directly related to the level of responsibility. These may include expenses such as office rent, utilities, equipment, and other overhead costs that are required to run an organization. While indirect costs are necessary to operate an organization, they are not directly attributable to any one individual's level of responsibility. In conclusion, the costs directly related to a level of responsibility are higher while the indirect costs are not directly proportional to the level of responsibility. The costs incurred by an individual in an organization should be commensurate with the level of responsibility assigned to them.
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On January 2, Neumann Corp. changes from the LIFO to the FIFO method. Its financial statement notes indicate that beginning inventory would have been $10,000 higher if it had utilized FIFO during prior years. Neumann's journal entry should include a
Neumann Corp. has changed its method of accounting for inventories on January 2nd, from the LIFO method to the FIFO method. The financial statements show that beginning inventory would have been $10,000 higher if it had used FIFO in prior years, and the company will have to make a journal entry.
Journal entries are records of financial transactions that are entered into the general ledger. These transactions can be made by purchasing inventory, making payments to suppliers, or selling goods to customers. Each transaction affects at least two accounts and is recorded in the general journal. The debits and credits must balance in the journal entry for it to be valid.
When a company changes its inventory costing method, a cumulative effect adjustment is required to be made in the accounts to reflect the changes in inventory values in the previous year(s). Here, Neumann Corp. has changed from LIFO to FIFO. In such cases, the following journal entry must be made:
Change in accounting principle-
Journal entry
AccountDebit
CreditInventory10,000
Accounts payable10,000
In the given scenario, the inventory amount would be $10,000 more if the company had used the FIFO method, instead of LIFO. This means that the amount of inventory that was sold under the LIFO method was undervalued by $10,000. Therefore, the company will need to increase the inventory value by $10,000 and increase the accounts payable by the same amount. The company will make the following journal entry to account for the change in accounting method:Inventory is debited by $10,000 to increase the inventory value by that amount, and accounts payable is credited by the same amount to account for the increased cost of the inventory bought from the suppliers.
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