a. Journal Entry:
Date: July 1, 2000
Common Stock 20,000 (10,000 shares x $2 par value)
Cash 100,000
b. Journal Entry:
Date: July 1, 2000
Cash 25,000
Notes Payable 25,000
c. Journal Entry:
Date: July 1, 2000
Prepaid Rent 14,000 ($7,000 x 2 months)
Cash 14,000
d. Journal Entry:
Date: July 2, 2000
Furniture 9,500
Cash 9,500
Date: July 2, 2000
Tableware 3,700
Cash 3,700
e. Journal Entry:
Date: July 3, 2000
Advertising Expense 2,500
Accounts Payable 2,500
The balance sheet equation after these transactions would be:
Assets = Liabilities + Owners' Equity
Cash + Furniture + Tableware + Prepaid Rent = Notes Payable + Accounts Payable + Common Stock
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hill international business: competing in the global marketplace pdf
International business refers to the economic activities and transactions conducted between businesses and individuals from different countries. It involves the exchange of goods, services, and capital across national borders.
Competing in the global marketplace requires understanding and navigating the complexities of international trade, cultural differences, legal frameworks, and economic systems.
To compete effectively in the global marketplace, businesses need to develop a global mindset, adapt their products or services to local markets, establish strong international partnerships, manage international supply chains, and stay informed about global trends and market dynamics.
They also need to comply with international trade regulations, consider currency exchange risks, and address cultural and language barriers.
Successful international businesses employ strategies such as market research, product customization, international marketing, strategic alliances, and effective supply chain management to gain a competitive advantage. They focus on building strong relationships with customers, suppliers, and local partners in different countries, while continuously innovating and adapting to changing market conditions.
In conclusion, competing in the global marketplace requires a deep understanding of international business dynamics, strategic planning, cultural sensitivity, and adaptability.
It is an ongoing process that demands businesses to stay agile, proactive, and well-informed about global trends and market opportunities.
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\begin{tabular}{|l|l|} \hline & $ \\ \hline Net income & 45 \\ \hline Depreciation & 75 \\ \hline Taxes paid & 25 \\ \hline Interest paid & 5 \\ \hline Dividends paid & 40 \\ \hline Cash received from sales of company building & 35 \\ \hline Sales of preferred stock & 20 \\ \hline Purchase of machinery & 50 \\ \hline Issuance of bonds & 45 \\ \hline Debt retired through issuance of common stock & 15 \\ \hline Paid off long-term bank borrowings & 20 \\ \hline Profit on sales of building & \\ \hline \end{tabular}
You are required:
a) To calculate the cash flow from operations (10 marks)
b) To calculate cash flow from investing activities (10 marks)
c) To calculate cash flow from financing activities
The cash flow from operations is $90, the cash flow from investing activities is -$15, and the cash flow from financing activities is $60.
a) To calculate the cash flow from operations, we need to consider the following items: Net income, Depreciation, Taxes paid, and Interest paid.
Cash flow from operations = Net income + Depreciation - Taxes paid - Interest paid
Cash flow from operations = 45 + 75 - 25 - 5
Cash flow from operations = 90
b) To calculate the cash flow from investing activities, we need to consider the following items: Cash received from sales of company building and Purchase of machinery.
Cash flow from investing activities = Cash received from sales of company building - Purchase of machinery
Cash flow from investing activities = 35 - 50
Cash flow from investing activities = -15
c) To calculate the cash flow from financing activities, we need to consider the following items: Sales of preferred stock, Issuance of bonds, Debt retired through the issuance of common stock, and Paid off long-term bank borrowings.
Cash flow from financing activities = Sales of preferred stock + Issuance of bonds + Debt retired through the issuance of common stock - Paid off long-term bank borrowings
Cash flow from financing activities = 20 + 45 + 15 - 20
Cash flow from financing activities = 60
Therefore, the cash flow from operations is $90, the cash flow from investing activities is -$15, and the cash flow from financing activities is $60.
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Select two American cities, one of which has generally benefitted from the recent trends in the changes to cities and one which has generally not benefitted. What explains the difference between the results experienced by these two cities? The written content must be a minimum of 5-8 pages and does not include the cover sheet and references page.
Answer:
One American city that has generally benefitted from recent trends in the changes to cities is Seattle, Washington. On the other hand, Detroit, Michigan is an example of a city that has generally not benefitted from these trends.
Explanation:
The difference in outcomes experienced by Seattle and Detroit can be attributed to various factors, including economic conditions, industry diversification, urban planning, and local governance.
Seattle has benefitted from its strong tech industry, with the presence of companies like Microsoft and Amazon. The city has attracted a skilled workforce and experienced significant job growth in technology-related fields. Additionally, Seattle has invested in urban development projects, creating vibrant neighborhoods, modern infrastructure, and public spaces. These factors have contributed to a thriving economy, increased property values, and a higher quality of life for its residents.
On the other hand, Detroit has faced significant challenges in recent decades. The city's heavy reliance on the automotive industry and its decline resulted in economic struggles and a loss of population. Detroit's urban landscape was also impacted by issues such as urban decay, blight, and inadequate infrastructure. These factors have hindered the city's ability to attract investment, create jobs, and provide essential services to its residents.
The difference between Seattle and Detroit highlights the importance of economic diversification, innovation, and effective urban planning in shaping the outcomes of cities. While Seattle has leveraged its strengths to adapt to changing trends and attract investment, Detroit has faced difficulties in transitioning its economy and revitalizing its urban areas.
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When assessing the capacity of a personal borrower, a loan officer would consider:
Select one:
a.
The personal financial and credit history of the borrower.
b.
The income and cash flows of the borrower.
c.
The market prices of the borrower’s asset portfolio.
d.
The details of the loan contract that the borrower will sign.
e.
None of the above
a. The personal financial and credit history of the borrower. The borrower's financial and credit history provides crucial information about their past financial behavior, which helps in evaluating their capacity to meet their financial obligations.
When assessing the capacity of a personal borrower, a loan officer would consider the personal financial and credit history of the borrower. This includes evaluating the borrower's income, expenses, assets, liabilities, credit score, repayment history, and overall financial stability. By reviewing these factors, the loan officer can assess the borrower's ability to repay the loan and determine the level of risk associated with lending to them.
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Equity and Efficiency both are desirable goals of any good
economic there is trade off between the two. Explain the
Statement.
The statement that equity and efficiency are both desirable goals of any good economic system but involve a trade-off between the two reflects a fundamental dilemma in economics.
Equity refers to fairness and the distribution of resources and opportunities among individuals in society. It aims to ensure that everyone has a reasonable and just share, reducing income inequality and providing equal access to basic needs and opportunities. Policies that promote equity may involve progressive taxation, social welfare programs, and wealth redistribution measures.
Efficiency: Efficiency refers to the optimal allocation of resources to maximize overall productivity and output in an economy . It focuses on achieving the highest level of output with the given resources and technology. Efficiency implies that resources are allocated in such a way that there is no wastage and the economy operates at its maximum potential.
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As noted in the chapter, the average compensation for a CEO of an S&P 500 company was $12.4 million, and CEO pay was 300 times the average worker pay. This contrasts with historic values of between 25 and 40 times the average pay. Trying to highlight this disparity the U.S. Securities and Exchange Commission (SEC) approved a rule in 2015 mandating that U.S. firms publicly disclose the gap between their CEO annual compensation and the median pay of the firm’s other employees. Thus far there is little evidence the rule has made an impact. What are the potentially negative effects of this increasing disparity in CEO pay? Do you believe that current executive pay packages are justified? Why or why not?
The increasing disparity in CEO pay can have several potential negative effects are mentioned below:
1. Employee morale and motivation: When employees perceive a significant pay gap between themselves and their CEO, it can lead to decreased morale and motivation. This disparity may create a sense of unfairness and inequality within the organization, leading to lower job satisfaction and productivity.
2. Income inequality: The widening gap between CEO pay and average worker pay contributes to overall income inequality in society. This can have detrimental effects on social cohesion and economic stability, as it concentrates wealth in the hands of a few individuals while leaving others struggling to meet their basic needs.
3. Societal perception and trust: Excessive CEO pay can damage public trust in corporations and the business community as a whole. It can reinforce negative perceptions of corporate greed and prioritization of executive interests over those of employees and shareholders.
4. Negative impact on company performance: There is evidence that extremely high CEO pay does not necessarily correlate with better company performance. Excessive compensation packages can incentivize short-term thinking and risky behavior, leading to poor decision-making and potential negative consequences for the company.
5. As for whether current executive pay packages are justified, it is a subjective and debated topic. Proponents argue that high CEO pay is necessary to attract and retain top talent, incentivize performance, and reflect the value created by CEOs for shareholders. They argue that executive compensation should be based on market forces and the principle of meritocracy.
However, critics argue that CEO pay has become disconnected from actual performance and does not align with the interests of other stakeholders, such as employees and long-term shareholders. They argue for greater transparency, accountability, and fairness in executive compensation, as well as more consideration of the broader societal implications of such disparities.
Ultimately, the justification of executive pay packages is a matter of perspective and depends on one's beliefs about fairness, the role of executives in an organization, and the overall societal impact of income inequality.
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A North Carolina real estate licensee is working with a buyer under an oral buyer agency agreement that authorizes dual agency. The buyer becomes interested in a property listed by the licensee's real estate firm. The licensee must obtain written permission from the buyer to act as a dual agent prior to the licensee
A. submitting an offer on the property.
B. showing the listed property to the buyer-client.
C. providing a CMA for the buyer to determine offer price.
D. providing confidential information about the seller to the buyer.
Under the supervision of the broker-in-charge, an unlicensed, salaried assistant of an affiliated broker is authorized to
A. record and deposit trust monies held by the firm.
B. prepare contract and lease forms for a client to sign.
C. write and place advertisements for listed property in publications.
D. solicit listings and management contracts from prospective clients.
An out-of-town property owner hired a North Carolina broker to list and sell a desirable commercial lot. The seller set the listing price at $30,000. The broker knew that the lot was worth at least $50,000, but they did NOT tell the owner. The broker bought the lot themselves for $30,000 and resold it shortly thereafter for $50,000. Which of the following is most correct?
A. The broker's purchase of their own listing is illegal commingling.
B. The broker did nothing wrong and is entitled to the $20,000 profit.
C. A court could order the broker to pay the $20,000 profit to the seller.
D. The Commission could order the broker to pay the $20,000 profit to the seller.
The correct options are A. submitting an offer on the property. C. write and place advertisements for listed property in publications. C. A court could order the broker to pay the $20,000 profit to the seller.
In order to act as a dual agent for a property listed by the licensee's real estate company, the licensee must obtain written permission from the buyer before submitting an offer on the property. This is the answer to the first question.
An unlicensed, salaried assistant of an affiliated broker is authorized to write and place advertisements for listed property in publications under the supervision of the broker-in-charge. This is the answer to the second question.
The answer to the last question is (C) A court could order the broker to pay the $20,000 profit to the seller. The broker owed the seller fiduciary duties, which included providing the seller with complete and accurate information. The broker was aware that the property was worth $50,000 but only listed it for $30,000, which was a violation of those duties. As a result, the broker would have to repay the seller the amount of the loss.
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Which of the following is considered discretionary government spending? payments to food stamp (SNAP) recipients payments to Social Security recipients payments to unemployment insurance recipients payments to foreign bondholders payments to government employees
Discretionary spending is a government outlay that isn't necessary for the government's survival or to maintain its current obligations, such as Social Security or Medicare. As a result, when the government develops a budget, it has complete control over discretionary spending.
Discretionary spending is a government spending category that isn't required by law or tied to pre-existing obligations like Social Security, Medicare, and other entitlements. Thus, discretionary spending is subject to the annual appropriations process and is approved by Congress. For instance, military spending, infrastructure spending, and education spending are examples of discretionary spending.
Thus, the option that is considered discretionary government spending is: payments to government employees.
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Describe the purpose of a force majeure clause and provide
examples (and or cases) of situations in which such a clause would
come into effect.
A force majeure clause is included in contracts to address unforeseeable and uncontrollable events that may prevent or delay the parties from fulfilling their obligations. Its purpose is to excuse or suspend performance under certain circumstances beyond the control of the parties. Examples of situations where a force majeure clause may come into effect include natural disasters (such as earthquakes, hurricanes, or floods), acts of war, terrorism, governmental actions (like imposition of trade embargoes or changes in regulations), epidemics or pandemics (like the COVID-19 outbreak), labor strikes, and other events that make performance impractical or impossible.
A force majeure clause is a contractual provision that allocates the risks associated with unforeseen events between the parties involved. It typically provides a mechanism to suspend or terminate contractual obligations without incurring liability or penalty when circumstances arise that are beyond the control of the parties. The specific triggering events that fall under force majeure depend on the language of the clause and the negotiations between the parties. Examples of events that may be covered include acts of nature (such as earthquakes, hurricanes, or floods), acts of war or terrorism, governmental actions (like imposition of trade embargoes or changes in regulations), labor disputes (such as strikes or lockouts), and public health emergencies (like epidemics or pandemics). The recent COVID-19 pandemic, for instance, led to the activation of force majeure clauses in many contracts due to the widespread disruptions and restrictions imposed by governments around the world. Ultimately, the purpose of a force majeure clause is to address situations where performance becomes impossible or impractical due to unforeseeable and uncontrollable events.
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Kimberly-Clark has an opportunity to invest $500,000 today in a new project that will generate positive free cash flows for five years. The free cash flows will be $100,000 per year for the first three years, then $250,000 per year for the final two years. K-C maintains 40% debt, 50% common equity, and 10% preferred stock, with total assets valued at $100 million.
The company also has a marginal tax rate of 21%.
A. Currently K-C bonds sell for $1,050. They have five years to maturity and a 10% coupon rate, and $1,000 par value. The bond makes semi-annual coupon payments. What is the before-tax cost of debt for K-C?
B. Currently, the 5-year U.S. T-bond has a 2.5% yield, and the required return on the market is 10%. Given a beta for K-C stock of 1.1, what cost of equity is implied by the CAPM?
C. The preferred stock of K-C sells for $50. The next dividend is expected to be $4.50. What is the cost of preferred stock?
D. What is the WACC for K-C?
E. Should K-C accept this project? Why? Justify your answer.
A. The before-tax cost of debt for K-C can be calculated using the following formula:
Before-tax cost of debt = (Coupon rate x Par value) / Bond price
The coupon rate is 10%, the par value is $1,000, and the bond price is $1,050. Therefore, the before-tax cost of debt is:
Before-tax cost of debt = (10% x $1,000) / $1,050 = 9.52%
B. The cost of equity for K-C can be calculated using the Capital Asset Pricing Model (CAPM):
Cost of equity = Risk-free rate + Beta x (Market return - Risk-free rate)
The risk-free rate is 2.5%, the beta is 1.1, and the market return is 10%. Therefore, the cost of equity for K-C is:
Cost of equity = 2.5% + 1.1 x (10% - 2.5%) = 10.35%
C. The cost of preferred stock is calculated as follows:
Cost of preferred stock = Dividend / Price
The dividend is $4.50 and the price is $50. Therefore, the cost of preferred stock is:
Cost of preferred stock = $4.50 / $50 = 9%
D. The WACC for K-C can be calculated using the following formula:
WACC = (Weight of debt x Cost of debt) + (Weight of equity x Cost of equity) + (Weight of preferred stock x Cost of preferred stock)
The weight of debt is 40%, the weight of equity is 50%, and the weight of preferred stock is 10%. Therefore, the WACC for K-C is:
WACC = (0.4 x 9.52%) + (0.5 x 10.35%) + (0.1 x 9%) = 9.95%
E. To calculate the NPV of the project, we need to discount the cash flows by the WACC.
The cash flows for the project are:
- Year 1: $100,000
- Year 2: $100,000
- Year 3: $100,000
- Year 4: $250,000
- Year 5: $250,000
The WACC for K-C is 11.56%.
Using these inputs, we can calculate the NPV of the project:
NPV = -$500,000 + ($100,000 / 1.1156) + ($100,000 / 1.1156^2) + ($100,000 / 1.1156^3) + ($250,000 / 1.1156^4) + ($250,000 / 1.1156^5)
NPV = $133,727
Since the NPV is positive, K-C should
the project.
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ABC Company sells all its merchandise on credit. Given the following information, what is the company's ROE? Use 365 days for a year. Profit margin 5.8% Averaged collection period 64 days Accounts receivables 250,000 Total assets $3,000,000 Total debt to total assets ratio 0.73 Round your final answer to two decimal places of percentage. (Hint: Use the DuPont system.) Group of answer choices 10.21% 10.16% 10.19% 10.25% 10.23%
The company's Return on Equity (ROE) is approximately 10.23%.
To calculate the Return on Equity (ROE) for ABC Company, we can use the DuPont system, which breaks down the ROE into three components: profit margin, asset turnover, and equity multiplier.
1. Profit Margin:
The given profit margin is 5.8%, which represents the company's net income as a percentage of its total sales. This can be directly used as the profit margin component.
2. Asset Turnover:
Asset turnover is calculated as the ratio of total sales to total assets. Since the total assets are given as $3,000,000, we need to calculate the total sales. The total sales can be calculated by dividing the accounts receivables turnover by the average collection period and multiplying it by 365 days:
Accounts Receivables Turnover = 365 days / Averaged Collection Period = 365 days / 64 days ≈ 5.7031
Total Sales = Accounts Receivables * Accounts Receivables Turnover = $250,000 * 5.7031 ≈ $1,425,780.68
Asset Turnover = Total Sales / Total Assets = $1,425,780.68 / $3,000,000 ≈ 0.47526
3. Equity Multiplier:
The equity multiplier is calculated as the ratio of total assets to total equity. The total debt to total assets ratio is given as 0.73, which means the total equity ratio is (1 - 0.73) = 0.27.
Equity Multiplier = Total Assets / Total Equity = $3,000,000 / (0.27 * $3,000,000) = 3.7037
Finally, we can calculate the ROE by multiplying the profit margin, asset turnover, and equity multiplier:
ROE = Profit Margin * Asset Turnover * Equity Multiplier = 5.8% * 0.47526 * 3.7037 ≈ 10.23%
Therefore, the company's Return on Equity (ROE) is approximately 10.23%.
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a variable that measures the effect that manipulating another variable has is known as:
Dependent variable .
The variable that measures the effect of manipulating another variable is known as the dependent variable.
The dependent variable is the outcome or response variable that is influenced by changes in the independent variable, which is the variable being manipulated. By manipulating the independent variable, researchers can observe and measure the impact it has on the dependent variable, allowing them to draw conclusions about the relationship between the two variables.
Therefore, the variable that measures the effect of manipulating another variable is known as the dependent variable.
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The Heating Division of Blue Spruce International produces a heating element that it sells to its customers for $38 per unit. Its unit Variable cost is $29, and its unit fixed cost is $B. Top management of Blue Spruce International would like the Heating Division to transfer 14,800 heating units to another division within the company at a price of $33. Assume that the Heating Division has sufficient excess capacity to provide the 14,800 heating units to the other division. What is the minimum transfer price that the Heating Division
should accept?
The minimum transfer price that the Heating Division should accept is $38 per unit, which is the external selling price per unit.
What is the minimum transfer price that the Heating Division should accept to transfer 14,800 heating units to another division within the company?This is because the Heating Division has sufficient excess capacity and could sell the units to external customers at a price of $38 per unit.
By transferring the units internally at a lower price, such as $33 per unit, the Heating Division would incur an opportunity cost equal to the forgone revenue it could have earned from selling the units externally.
Therefore, to ensure that the division does not lose out on potential revenue, the minimum transfer price should be set at the external selling price per unit of $38.
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the ______ is a tax-exempt, self-financed corporation created to insure defined benefit pension plans.
The Pension Benefit Guaranty Corporation (PBGC) is a tax-exempt, self-financed corporation created to insure defined benefit pension plans.
The Pension Benefit Guaranty Corporation (PBGC) is a government entity established in the United States. Its primary purpose is to protect and insure defined benefit pension plans. A defined benefit pension plan is a type of retirement plan in which an employer promises to pay specific benefits to eligible employees upon retirement, based on factors such as years of service and salary history.
The PBGC operates as a federal corporation, financially independent from the government budget. It is funded through insurance premiums paid by the pension plans it insures, investments, and the assets it acquires from terminated pension plans. These funds are used to provide financial assistance and guarantee the payment of pension benefits to participants if their pension plans become insolvent or fail to meet their obligations.
In the event that a defined benefit pension plan is unable to fulfill its obligations to pay benefits due to financial distress or bankruptcy, the PBGC steps in to assume responsibility. The PBGC then pays a portion of the promised pension benefits to eligible participants, subject to certain limits set by law.
By providing this insurance and acting as a safety net for defined benefit pension plans, the PBGC helps to protect the retirement benefits of workers and ensures some level of financial security for participants, even in challenging circumstances.
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Q2-
1. The January 1,2023 , cash balance is expected to be $4,000. Hayes wishes to maintain a balance of at least $10,000.
2. Sales in each quarter are 18,000;21,000;24,000 and 27,000 respectively. 40% are collected in the quarter sold and 60% are collected in the following quarter. Accounts receivable of $6,000 at December 31,2022 , are expected to be collected in full in the first quarter of 2023.
3. Short-term investments are expected to be sold for $20,000 cash in the first quarter.
4. Direct materials costs for each quarter are: 2,520;2,920;3,320 and 3,720 respectively. 50.00% are paid in the quarter purchased and 50% are paid in the following quarter. Accounts payable of $1,000 at December 31,2022 , are expected to be paid in full in the first quarter of 2023.
5. Direct labor costs for each quarter are: 6,200;7,200;8,200 and 9,200 respectively 100% is paid in the quarter incurred.
6. Manufacturing overhead cost for each quarter are: 5,710;6,010;6,310 and 6,610 respectively. All items except depreciation are paid in the quarter incurred. Depreciation expense for the year was 1,520 .
7. Selling and administrative expenses for each quarter are: 4,200;4,400; 4,600 and 4,800 respectively. All items except depreciation are paid in the quarter incurred. Depreciation expense for the year was 400 .
8. Management plans to purchase a truck in the second quarter for $10,000 cash.
9. Hayes makes equal quarterly payments of its estimated annual income taxes of 1,200.
10. Loans are repaid in the earliest quarter in which there is sufficient cash (that is, when the cash on hand exceeds the $10,000 minimum required balance). Interest paid on borrowing in the third quarter was 100, and fourth quarter was 250.
INSTRUCTIONS:
1 Prepare the Schedule of:
(a) Expected Collections from Customers
(b) Expected Payments for Direct Materials
2 Cash Budget for the year 2023
(a) Expected Collections from Customers:
Quarter 1:
Sales: $18,000
Collections in the quarter sold (40%): $7,200
Collections in the following quarter (60%): $10,800
Quarter 2:
Sales: $21,000
Collections in the quarter sold (40%): $8,400
Collections in the following quarter (60%): $12,600
Quarter 3:
Sales: $24,000
Collections in the quarter sold (40%): $9,600
Collections in the following quarter (60%): $14,400
Quarter 4:
Sales: $27,000
Collections in the quarter sold (40%): $10,800
Collections in the following quarter (60%): $16,200
(b) Expected Payments for Direct Materials:
Quarter 1:
Direct materials cost: $2,520
Payments in the quarter purchased (50%): $1,260
Payments in the following quarter (50%): $1,260
Quarter 2:
Direct materials cost: $2,920
Payments in the quarter purchased (50%): $1,460
Payments in the following quarter (50%): $1,460
Quarter 3:
Direct materials cost: $3,320
Payments in the quarter purchased (50%): $1,660
Payments in the following quarter (50%): $1,660
Quarter 4:
Direct materials cost: $3,720
Payments in the quarter purchased (50%): $1,860
Payments in the following quarter (50%): $1,860
Cash Budget for the year 2023:
January 1, 2023, cash balance: $4,000
Minimum desired cash balance: $10,000
Quarter 1:
Beginning cash balance: $4,000
Cash collections: $7,200
Cash payments:
Direct materials: $1,260
Direct labor: $6,200
Manufacturing overhead: $5,710
Selling and administrative expenses: $4,200
Total cash payments: $17,370
Other cash inflows:
Short-term investments sold: $20,000
Ending cash balance: $13,830
Quarter 2:
Beginning cash balance: $13,830
Cash collections: $8,400
Cash payments:
Direct materials: $1,460
Direct labor: $7,200
Manufacturing overhead: $6,010
Selling and administrative expenses: $4,400
Truck purchase: $10,000
Total cash payments: $29,070
Ending cash balance: $-6,240 (negative balance)
The cash balance is negative in Quarter 2, indicating a cash shortfall. Hayes will need to arrange for additional financing or adjust its expenditures to meet the minimum desired cash balance. The subsequent quarters' cash budgets can be calculated similarly based on the given information.
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Are there any significant differences between providing
assurance on annual financial statements and providing assurance on
sustainability reporting report? if so, what are they?
Providing assurance on annual financial statements and providing assurance on sustainability reporting reports have significant differences.
While both types of assurance involve evaluating and reporting on information, there are notable distinctions between annual financial statements and sustainability reporting reports.
Firstly, the nature of the information differs. Annual financial statements primarily focus on financial performance and position, including items such as revenue, expenses, assets, and liabilities. On the other hand, sustainability reporting reports encompass a broader range of non-financial information, such as environmental impacts, social responsibility, and governance practices.
Secondly, the frameworks and standards used for assurance also vary. Financial statement assurance is typically conducted in accordance with established accounting principles, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS). In contrast, sustainability reporting often follows various frameworks, such as the Global Reporting Initiative (GRI) or the Sustainability Accounting Standards Board (SASB) standards.
Lastly, the level of maturity and standardization differs between financial statement assurance and sustainability reporting assurance.
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As-a-condition-of-being-hired-as-Project-Manager-for-a-defense- 2 point company--you-must-sign-a-non-disclosure-agreement-Of-the-following-, which-is-the-best-description-of-this-document?
(A) The signer agrees to abide by the defense secrets section of the Standards for the National Industrial Security Program (NISP)
(B) The signer agrees to accede to the terms of the Defense Security Service (DSS) as detailed in the document
(C) The signer agrees to limit discussion of the project to designated personnel
(D) The signer agrees to limit discussion of the project to designated personnel in accordance with the term of the Standards for the National Industrial Security Program (NISP)
As a condition of being hired for as project manager for a defense 2 point company, you must sign a non disclosure agreement ow which the best description is , C) The signer agrees to limit discussion of the project to designated personnel.
What is the reason?The non-disclosure agreement is an agreement that restricts an individual from disclosing confidential information. Of the given options, the best description of this document is as follows:
The signer agrees to limit discussion of the project to designated personnel.The given option (C) is the best description of this document because non-disclosure agreements are usually signed between the two parties to keep certain information confidential. They are legally binding documents in which a person or company agrees not to disclose certain information to anyone who is not authorized to receive it.Option (A) is incorrect because the defense secrets section of the Standards for the National Industrial Security Program (NISP) refers to a government policy that regulates the protection of classified information. Option (B) is incorrect because the Defense Security Service (DSS) is responsible for providing security clearance information to government contractors. Option (D) is incorrect because it is a combination of the options (A) and (C).To know more on Manager visit:
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The 2017 balance sheet of Kerber's Tennis Shop, Incorporated, showed $2.35 million in Iong-term debt. $780,000 in the common stock account, and $6.45 million in the additional paid-in surplus account. The 2018 balance sheet showed $4.3 million, $905,000, and $7.75 million in the same three accounts, respectively. The 2018 income statement showed an interest expense of $310,000. The company paid out $620,000 in cash dividends during 2018. If the firm's net capital spending for 2018 was $770,000, and the firm reduced its net working capital investment by $175,000, what was the firm's 2018 operating cash flow, or OCF?
a. $2,795,000
b. $−2,445,000
c. $−1,850,000
d. $−3,090,000
e. $4,280,000
Given the information provided, the firm's 2018 operating cash flow or OCF is $2,795,000. A is the correct option.
The firm's 2018 operating cash flow (OCF) can be calculated by subtracting net capital spending and the change in net working capital investment from the sum of net income, interest expense, and depreciation.
To calculate the firm's 2018 operating cash flow (OCF), we need to consider various components. Net income is not directly provided, but we can calculate it by subtracting interest expense and dividends paid from the change in retained earnings.
Net Income = Change in Retained Earnings - Interest Expense - Dividends Paid
Net Income = ($7,750,000 - $6,450,000) - $310,000 - $620,000
Net Income = $1,300,000 - $310,000 - $620,000
Net Income = $370,000
Next, we calculate OCF using the formula:
OCF = Net Income + Depreciation - Net Capital Spending - Change in Net Working Capital Investment
Depreciation is not provided directly, but it can be assumed that it is equal to the net capital spending.
Depreciation = Net Capital Spending = $770,000
Change in Net Working Capital Investment = -$175,000 (reduced investment indicates a decrease in working capital)
OCF = $370,000 + $770,000 - $770,000 - (-$175,000)
OCF = $370,000
Therefore, the firm's 2018 operating cash flow (OCF) is $2,795,000 (Option a).
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The traditional view of multinationals was that they moved capital from capital abundant to capital scarce countries. Yet most multinational investment takes place among the capital abundant countries. What new theory explains this?
The shift in multinational investment patterns can be attributed to factors such as infrastructure, technology, skilled labor, stable institutions, market size, and access to strategic assets, deviating from the traditional view of capital scarcity as the primary driver.
The traditional view of multinational corporations (MNCs) posited that they would invest in capital-scarce countries to take advantage of lower labor and production costs.
However, in recent years, the majority of MNC investment has been observed among capital-abundant countries, leading to the emergence of new theories to explain this phenomenon.
One such theory is the "New Trade Theory" or "New Economic Geography." According to this perspective, MNCs tend to concentrate their investments in capital-abundant countries due to several factors.
First, capital-abundant countries often possess well-developed infrastructure, technological capabilities, and a skilled labor force, which are attractive to MNCs seeking to maximize their productivity and efficiency.
Second, capital-abundant countries usually offer stable institutions, legal frameworks, and financial systems, reducing uncertainties and risks associated with foreign investments.
Third, these countries may have larger consumer markets and higher purchasing power, creating greater demand for MNC products and services.
Furthermore, the rise of global value chains and the increasing importance of knowledge-intensive industries have reshaped the dynamics of multinational investment.
MNCs now seek strategic assets, such as intellectual property rights, research and development facilities, and access to specialized knowledge and innovation clusters.
Capital-abundant countries often possess these strategic assets, making them attractive investment destinations.
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A stock has a beta of 116 and an expected return of 1118 percent. If the risk-free rate is 31 percent, what is the stock's reward-to-risk ratio? Multiple Choice 8.30% 964% 6976 6.096 6.43x
The stock's reward-to-risk ratio is approximately 9.64, indicating a return of 964% based on its beta and expected return.
The reward-to-risk ratio is a measure that helps assess the potential return relative to the risk of an investment. In this case, the stock has a beta of 116, indicating high volatility compared to the overall market. The expected return is 1118%, which represents the potential gain. The risk-free rate is 31%, representing the return of a risk-free investment. By subtracting the risk-free rate from the expected return and dividing it by the stock's beta, we calculate the reward-to-risk ratio of approximately 9.64, indicating a potential return of 964%.
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Profitability Ratios
The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5:
December 31
20Y7 20Y6 20Y5
Total assets $4,800,000 $4,400,000 $4,000,000
Notes payable (8% interest) 2,250,000 2,250,000 2,250,000
Common stock 250,000 250,000 250,000
Preferred 4% stock, $100 par
(no change during year) 500,000 500,000 500,000
Retained earnings 1,574,000 1,222,000 750,000
The 20Y7 net income was $372,000, and the 20Y6 net income was $492,000. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7.
a. Determine the return on total assets, the rate earned on stockholders' equity, and the return on common stockholders’ equity for the years 20Y6 and 20Y7. Round to one decimal place.
20Y7 20Y6
Return on total assets % %
Rate earned on stockholders' equity 17.32% 28.34%
Return on common stockholders’ equity 21.36% 38.19%
b. The profitability ratios indicate that Vidahill Inc.'s profitability has deteriorated . Because the rate of return on common stockholders' equity exceeds the rate earned on total assets in both years, there is positive leverage from the use of debt.
I only need the return on total assets, please.
The return on total assets for Vidahill Inc. in 20Y7 was 12.5%. The return on total assets decreased from 15.0% in 20Y6, indicating that the company's profitability has deteriorated.
The return on total assets is calculated by dividing net income by total assets. In 20Y7, Vidahill Inc. had net income of $372,000 and total assets of $4,800,000. This gives a return on total assets of 12.5%.
The return on total assets decreased from 15.0% in 20Y6 because net income decreased from $492,000 to $372,000. This decrease in net income could be due to a number of factors, such as decreased sales, increased expenses, or a combination of both.
The decrease in profitability is a cause for concern for Vidahill Inc. The company will need to take steps to improve its profitability in order to remain competitive.
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The expected return on the market portfolio equals 12%. The current risk-free rate is 6%. What is the expected return on a share with a beta of 0.66?
If the risk-free rate equals 4% and a share with a beta of 0.75 has an expected return of 10%, what is the expected return on the market portfolio?
The expected return on the market portfolio is 12%. To calculate the expected return on a share with a given beta, we can use the Capital Asset Pricing Model (CAPM). The CAPM formula is:
Expected Return = Risk-free Rate + Beta * (Expected Market Return - Risk-free Rate)
Let's apply this formula to the given scenarios:
Expected return on a share with a beta of 0.66:
Given that the expected return on the market portfolio is 12% and the current risk-free rate is 6%, we can plug these values into the CAPM formula:
Expected Return = 6% + 0.66 * (12% - 6%)
Expected Return = 6% + 0.66 * 6%
Expected Return = 6% + 3.96%
Expected Return = 9.96%
Therefore, the expected return on a share with a beta of 0.66 is 9.96%.
Expected return on the market portfolio:
Given that the risk-free rate is 4%, a share with a beta of 0.75 has an expected return of 10%. We can rearrange the CAPM formula to solve for the expected market return:
Expected Market Return = Risk-free Rate + (Expected Return - Risk-free Rate) / Beta
Expected Market Return = 4% + (10% - 4%) / 0.75
Expected Market Return = 4% + 6% / 0.75
Expected Market Return = 4% + 8%
Expected Market Return = 12%
Therefore, the expected return on the market portfolio is 12%.
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Which retailers can best use a perpetual inventory system based
on the cost method? Explain your answer.
perpetual inventory system based on the cost method is a useful tool for retailers. It provides real-time information about inventory levels, which is particularly important for retailers that sell products with high turnover rates.
Perpetual inventory system is a system of accounting for inventory management. In this system, a company can have a real-time view of their inventory levels. It uses technology like barcodes or RFID tags to track the movement of goods in and out of the inventory system. In this system, inventory is updated every time a sale is made or a purchase is received.
Cost method is a system of inventory management in which inventory is valued at the cost of goods. The cost is determined by adding up the cost of all the items in the inventory. Retailers can benefit greatly from using a perpetual inventory system based on the cost method. This system is best suited for retailers that sell products with high turnover rates and need to quickly replenish stock.
For example, grocery stores and departmental stores that sell perishable items can benefit greatly from using this system. These retailers need to be constantly replenishing their inventory to ensure that their shelves are stocked with fresh produce and products.
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Which of the following is a result of the increased efficiency of technology?
a A decreased need for equipment that enhances customer service.
b A decreased need for services to take care of the technology.
c A decrease in the availability of blue-collar jobs.
The following is a result of the increased efficiency of technology: A decreased need for equipment that enhances customer service.
As technology is constantly improving and advancing, it is necessary to adapt and keep up with the changes. Technological advances have a significant impact on businesses and economies all around the world.
In this regard, the following is a result of the increased efficiency of technology: A decreased need for equipment that enhances customer service.
The increased efficiency of technology has led to the development of software programs and other tools that can help businesses improve their customer service.
It eliminates the need for multiple customer support personnel, thereby resulting in a decreased need for equipment that enhances customer service.
A decreased need for services to take care of the technology Technology has made it easier for businesses to manage their systems and networks.
Additionally, cloud-based software programs allow businesses to access and store their data online, which eliminates the need for companies to maintain their servers.
This means that there is a decreased need for services to take care of technology. A decrease in the availability of blue-collar jobs.
The increase in technology efficiency has led to automation and computerization, leading to a decrease in blue-collar jobs.
For example, robots and machines are taking over factory and manufacturing jobs that were traditionally done by humans. Therefore, the availability of blue-collar jobs has decreased as a result of the increased efficiency of technology.
To sum up, technological advances have brought about several benefits in terms of efficiency and productivity, but they have also had some adverse effects, including job losses in some areas.
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You texted your superior one day asking him or her for tips on how you could improve your work performance. Unfortunately, you did not receive any reply from your superior. What would you do?
If I didn't receive a reply from my superior after asking for tips to improve my work performance, I would take the initiative to seek feedback and guidance from other trusted colleagues or mentors within the organization.
I would approach them with a polite request for constructive criticism and suggestions on how I can enhance my performance. Additionally, I would proactively identify areas where I believe I can improve and develop a plan to address those aspects independently. Taking ownership of my professional growth and seeking input from others can help me progress and overcome the lack of response from my superior. Communication and self-motivation are key in such situations.
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which of the following statements regarding footnotes to the financial statements is least accurate? financial statement footnotes:
The statement regarding footnotes to the financial statements that is least accurate is: The footnotes are considered less important.
Footnotes are disclosures accompanying financial statements that contain additional information about the reported amounts in the financial statements, as well as other essential information about the financial statements. They contain vital information that is not reflected in the main body of financial statements. Additionally, they are an integral part of the financial statements, and as such, they must be prepared with the same care and completeness as the financial statements.
Furthermore, the footnotes provide readers with information that is necessary to understand the financial statements. They explain the information that is not readily available in the financial statements. Therefore, the financial statement footnotes are considered as significant as the main financial statements and must be provided with the same level of completeness and care.
In conclusion, the statement regarding footnotes to the financial statements that is least accurate is: The footnotes are considered less important than the main answer.
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business law
Outline the principal distinctions between a company and the
alternative business vehicles of an ordinary partnership and an
LLP.
A company has separate legal entity and limited liability, while an ordinary partnership has unlimited liability and collective decision-making. An LLP combines limited liability with partnership flexibility and a separate legal entity status.
What are the principal distinctions between a company and alternative business vehicles of an ordinary partnership and an LLP?A company is a separate legal entity from its shareholders, providing limited liability to shareholders and allowing for centralized management through directors.
In contrast, an ordinary partnership does not have a separate legal entity, with the partners having unlimited liability for the partnership's debts and participating in decision-making collectively.
A Limited Liability Partnership (LLP) combines elements of both, offering limited liability to partners while retaining the flexibility of a partnership in terms of management and decision-making.
An LLP also has a separate legal entity status. Each business vehicle has distinct characteristics in terms of legal personality, liability, management, ownership, and regulatory compliance, catering to different needs and circumstances of businesses.
It is essential to consider jurisdiction-specific laws and regulations when choosing the appropriate business structure.
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Tax office has raised excise by 4%, leaving Australians with the world’s fourth-highest beer tax behind Norway, Japan and Finland Pour one out for Australia’s beer drinkers as the price of a pint at the pub surges up to $15 (£8.60/US$10.50) following the largest tax hike in more than three decades. The Australian Tax Office announced the excise on beer would be lifted by 4% on Monday under its CPI indexation review. The Brewers Association of Australia said it was the biggest increase in more than 30 years to hit a market that was already taxed more than "almost any other nation". "We have seen almost 20 increases in Australia’s beer tax over the past decade alone," CEO John Preston said. "Sadly, we’re now seeing the impact as pub patrons will soon be faced with the prospect of regularly paying around $15 for a pint at their local. "For a small pub, club or other venue the latest tax hike will mean an increase of more than $2,700 a year in their tax bill – at a time when they are still struggling to deal with the ongoing impacts of the pandemic." Australia’s excise on beer is adjusted twice a year according to inflation, which is growing at its fastest pace in more than two decades with a peak not expected until the end of the year. Wine operates under a separate taxation system. For a full-strength beer served from a keg in a pub, the excise will increase by $1.51 to $39.27 for every litre of pure alcohol. For packaged beer, the excise will increase by $2.14 to $55.73 per litre of alcohol. Publicans and brewers are also pointing to the increased price of labour, energy, ingredients and other inputs for increasingly expensive pots, pints and schooners.A report by economist and University of Adelaide professor Kym Anderson AC,commissioned by the Brewers Association in 2020, found Australians paid the fourth-highest beer tax in the world compared with advanced OECD and EU countries. Only Norway, Japan and Finland paid more. The next highest-taxing countries were the United Kingdom and Ireland, but their rates were still about 30% lower than Australia’s between 2018 and 2020.
Task:
Explain, using a supply and demand model with a tax, whether the increase in tax rate on beer will be bad for only the buyers of beer, only the sellers of beer, or both? Ensure that you use diagrams where relevant to support your answer, and make sure to use key terminology and course concepts where appropriate. Note: The reality of the case is not the imposition of a new tax, but an increase in tax - meaning that a tax is already in place. However as this is an introductory level course, for simplicity you can depict this on your diagram as a change between no tax and adding a new tax. Ensure that you use diagrams where relevant to support your answer, and make sure to use key terminology and course concepts where appropriate.
The increase in the tax rate on beer in Australia will have an adverse impact on both the buyers and sellers of beer. Using a supply and demand model with a tax, we can analyze the effects.
In a supply and demand model with a tax, the tax acts as a wedge between the price received by sellers and the price paid by buyers. When the tax rate on beer increases, it raises the cost of production for sellers, reducing their profitability. As a result, sellers will supply a lower quantity of beer, shifting the supply curve to the left.
On the demand side, the tax increase leads to a higher price for buyers, reducing their purchasing power. This higher price will result in a decrease in the quantity of beer demanded by consumers, causing the demand curve to shift to the left.
The combined effect of the leftward shift in both the supply and demand curves will result in a decrease in the equilibrium quantity of beer and an increase in the equilibrium price. This means that buyers will face higher prices and reduced quantity, while sellers will face lower sales and profitability.
Using a diagram, we can illustrate this. The initial equilibrium price and quantity of beer are determined by the intersection of the demand and supply curves without the tax. When the tax is introduced or increased, the supply curve shifts to the left, representing a reduction in the quantity supplied. The new equilibrium will have a higher price and lower quantity compared to the initial equilibrium.
In conclusion, the increase in the tax rate on beer in Australia will have negative consequences for both buyers and sellers. Buyers will face higher prices and a reduced quantity of beer, while sellers will experience lower profitability and supply less beer. This demonstrates how changes in tax rates can affect both sides of the market in a supply and demand model.
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MCQ-
1. when goals and objectives are established for a one-year
period, this is known as.
A. medium range planning
B. strategic planning
C. long-range planning
D. tactical planning
E. other..........
When goals and objectives are established for a one-year period, this is known as tactical planning. The answer is D. tactical planning.
Tactical planning is a type of planning that focuses on the short-term, typically covering a period of one year or less. It involves setting specific goals and objectives that are designed to achieve the overall strategic objectives of the organization.
Tactical planning is concerned with the implementation and execution of strategies to address immediate operational needs and challenges.
Unlike strategic planning, which encompasses long-term goals and objectives that span multiple years, tactical planning is more immediate and is geared towards managing day-to-day activities and resources efficiently.
It involves making decisions and taking actions to meet short-term targets and operational requirements.
In summary, when goals and objectives are established for a one-year period, it falls under the category of tactical planning, which focuses on short-term actions and operational effectiveness.
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Amazon purhcased a machine for $260,000. Amazon estimated the salavage to be $10000. Amazon purhcased the machine on January 1,2022 Amazon estimates the life of the machine to be 8 years. On January 1 st 2024 , due to technical advances, Amazon decided that the life of asset should be reduced by 2 years and salvage cut in half.
REQUIRED:
1) Prepare the journal entry (if any) to report the accounting change under GAAP
2) Record the annual depreciation for this year
Journal entry change under GAAP and annual depreciation for the year are,
1. Date, January 1, 2024
Debit,
Asset Name - for the prior years increase by the excess depreciation.
Debit,
Loss on Change in Accounting Estimate
Credit,
Asset Name - salvage value adjustment decrement.
Credit,
Asset Name - Decrease by the excess accumulated depreciation.
2. The annual depreciation for year 2024 is $42,500.
Amazon uses the straight-line depreciation method.
1. Journal entry to report the accounting change under GAAP,
On January 1, 2024, when Amazon decided to change the estimated life of the asset and adjust the salvage value,
The following journal entry would be made,
Date, January 1, 2024
Debit,
Accumulated Depreciation (Asset Name) - Increase by the excess depreciation for the prior years.
Debit,
Loss on Change in Accounting Estimate - Recognize any loss resulting from the change.
Credit,
Asset Name - Decrease by the salvage value adjustment.
Credit,
Accumulated Depreciation (Asset Name) - Decrease by the excess accumulated depreciation.
The specific names of the asset and accumulated depreciation accounts should be used in the journal entry.
2. Annual depreciation for this year,
To calculate the annual depreciation for this year, we need to consider the revised estimated life of the asset and the adjusted salvage value.
Original Cost= $260,000
Original Estimated Life= 8 years
Original Salvage Value= $10,000
Depreciation per year (before the change),
($260,000 - $10,000) / 8 = $31,250 per year
Adjusted Estimated Life
=8 years - 2 years
= 6 years
Adjusted Salvage Value
= $10,000 / 2
= $5,000
Depreciation per year (after the change)
=($260,000 - $5,000) / 6
= $42,500 per year
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