An example of principle collective liability is b. all companies within logging pay into a fund to support prevention initiatives. This is because principle collective liability refers to a liability situation where a group of people (or entities) share liability for a common risk or cause of action.
The idea is that the responsibility is shared collectively, so that no single person or entity bears the full responsibility. The collective fund can then be used to support prevention initiatives that will reduce the risk of accidents or diseases in the logging industry.Therefore, the correct option is b. all companies within logging pay into a fund to support prevention initiatives. It is a good example of principle collective liability. The other options, a. all companies within logging paying the costs for any and all accidents and diseases that occur for employees in that industry, c. all companies within logging pay based on only their experience, and d. all companies no matter the industry pay into WCB for any and all workplace accidents or illnesses, do not fit the description of principle collective liability.
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Golden Phoenix Bhd is a manufacturing company engaged in food and beverages industries. The company was listed in Bursa Malaysia since 2010 with 10,000,000 units of ordinary shares, 1,000,000 units of 5% cumulative preference shares and 1,000,000 units of 6% convertible debentures as at 31 December 2021. The trial balance of the company based on the unadjusted balances is shown below:
Golden Phoenix Bhd
Trial Balance as at 31 December 2021
Debit
RM'000
Credit
RM'000
Land (at revaluation as of 31 December 2020)
7,200
Buildings (at revaluation as of 31 December 2020)
12,500
Plant and Machineries
20,000
Office equipment
3,200
Accumulated depreciation as at 1 January 2021:
Buildings
1,563
Plant and Machineries
10,000
Office equipment
1,600
Investment properties
3,000
Intangible assets
6,000
Investments
3,260
Tax paid
2,500
Accounts receivable
685
Inventories
450
Bank
1,250
Ordinary shares
15,000
6% Cummulative irredeemable preference shares
2,000
Retained profits
11,740
Share Based Payment Reserve
680
Asset revaluation reserve
2,800
5% Bank loan
2,000
7% Convertible bond
1,500
Defined benefit liability as at 1 January 2021
586
Deferred tax
283
Accounts payable
628
Accruals
155
Interim dividend
810
Sales
38,000
Cost of sales
20,800
Administration expenses
5,360
Selling and distribution expenses
1,520
88,535
88,535
Additional information:
Below are details on land and buildings as at 31 December 2021:
Particular
Fair Value
(RM)
Remaining Useful life
Land
8,000,000
Indefinite
Buildings
18,500,000
25 years
Plant and machineries
-
8 years
Office equipment
-
6 years
The changes in the fair value have not been recorded by the company. The fair value of the building includes the value of renovation and transfer from investment properties.
On 30 June 2021, the company decided to do some renovation works to one of the old building with a carrying value of RM3,500,000 (cost; RM4,000,000) to expand the storage facility in order to meet the increasing demand for food and beverages. The company issued RM5,000,000 6% cumulative irredeemable preference shares to finance the renovation. This renovation will extend the useful life of the building for another 3 years.
All property, plant and equipment are depreciated using straight line method on yearly basis.
The company granted 2,000 shares to each of its 200 employees on 1 January 2019. The shares would be issued on 1 January 2022 provided that the employees would serve the company until the end of the third year. The exercise price was RM2.50 and the fair value of company’s share on the grant date was RM3.00 per share. As of 31 December 2019, twenty (20) employees left their employment and the company estimated that another ten (10) would leave in 2020. In 2020, fifteen (15) employees left and it is estimated that only hundred and fifty (150) employees would remain in service until end of the vesting period. As at 31 December 2021, fifteen (15) employees left the service.
Investment properties consists of two three-storey buildings rented out for capital appreciation. On 1 January 2021, one of the building has been used as company’ office for administrative purposes. Investment properties are measured using fair value model. As at financial year end, the fair value of investment properties is RM1,600,000 for each building. Both buildings have a remaining useful life of 25 years.
In the trial balance, there are items that have not been recorded as at 31 December 2021 which needs adjustments. Hence, adjustments are required to be made in the balance sheet and income statement. One of the unrecorded items is the changes in fair value of land and building.
Based on the trial balance and additional information, we know that Golden Phoenix Bhd is a manufacturing company engaged in food and beverages industries. The company has issued 10,000,000 units of ordinary shares, 1,000,000 units of 5% cumulative preference shares and 1,000,000 units of 6% convertible debentures as at 31 December 2021. The company has properties such as land, building, plant and machineries, and office equipment. All of these properties are depreciated using straight-line method on a yearly basis.
Golden Phoenix Bhd's investment properties consist of two three-storey buildings rented out for capital appreciation. One of the buildings has been used as company's office for administrative purposes since 1 January 2021. The investment properties are measured using fair value model. As at financial year-end, the fair value of investment properties is RM1,600,000 for each building. The company granted 2,000 shares to each of its 200 employees on 1 January 2019 with the exercise price of RM2.50.
The fair value of the company's share on the grant date was RM3.00 per share. The shares would be issued on 1 January 2022 provided that the employees would serve the company until the end of the third year. However, by the end of 2021, only 150 employees remain in service until end of the vesting period. 20 employees left their employment in 2019, another 10 in 2020 and 15 in 2021. The total compensation expense for 2019 and 2020 is RM600,000 while the compensation expense for 2021 is RM450,000.
In conclusion, the company's financial statements need to be adjusted for the unrecorded items in the trial balance as at 31 December 2021.
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Which type of fraud occurs when a person steals and uses someone else's personal information? a. identity theft b. personal theft c. character theft d. private theft Richard owns a large construction
a. identity theft
Identity theft occurs when a person steals and uses someone else's personal information, such as their name, social security number, credit card details, or other identifying information, without their consent.
This stolen information is then used for fraudulent purposes, such as making unauthorized financial transactions, opening new accounts, or committing other forms of fraud. Identity theft can have severe consequences for the victim, including financial loss, damage to credit history, and potential legal issues.
Account takeover, on the other hand, involves gaining unauthorized access to an existing account by using stolen login credentials or personal information. Identity theft can cause significant financial harm to the victim, as the perpetrator can use the stolen information to make fraudulent purchases, withdraw funds from the victim's accounts, or take out loans in their name.
Victims may also face challenges in repairing their credit and restoring their identity, which can take months or even years. To prevent identity theft, individuals should take measures such as protecting their personal information, monitoring their accounts regularly for any suspicious activity, and reporting any suspected identity theft to the authorities.
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Which one of the following is NOT a cognitive control type as defined in the generic error modeling system (GEMS)?
None of the others
Knowledge based
Rule based
Instruction based
Skill based
"Instruction based" is not a cognitive control type as defined in the Generic Error Modeling System (GEMS). The Generic Error Modeling System (GEMS) is a framework used to analyze and understand human performance and errors in complex systems.
It categorizes cognitive control types into four main categories: knowledge-based, rule-based, skill-based, and instruction-based.
1. Knowledge-based control: This type of control involves problem-solving and decision-making based on acquired knowledge and expertise. It requires conscious effort and attention to assess and respond to new or unfamiliar situations.
2. Rule-based control: Rule-based control relies on established rules, procedures, or algorithms to guide behavior and decision-making. It involves following predefined instructions or guidelines to perform tasks accurately.
3. Skill-based control: Skill-based control refers to highly practiced and automated actions performed without conscious awareness. It involves the execution of well-learned motor or cognitive skills and is typically efficient and rapid.
4. Instruction-based control: In the context of GEMS, "instruction-based" is not recognized as a separate cognitive control type. It is likely an incorrect or non-standard term in this specific framework.
Therefore, the correct answer is "Instruction based" since it is not a recognized cognitive control type in the Generic Error Modeling System framework.
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1. As an employee of Wells Fargo, you have been asked by your supervisor to "cross-sell". You are initially excited that there is an opportunity to receive more money, but it is not long after that you begin to feel that you are being compensated to cheat your clients. When you discover the motto, "Eight is great", you decide that the company is creating a culture of dishonesty in ‘pushing sham accounts’. Outline the path that you would take as a whistle-blower. List and explain the actions you would take as an employee who feels strongly that Wells Fargo is encouraging unethical behaviour and making ‘unreasonable demands’ of its workers.
2. In the wake of everything described in the case study, Wells Fargo has fired many employees, clawed back bonuses from executives, replaced many of its directors, dismantled its sales incentive system and made other changes. Do you think these changes were made out of a utilitarian calculation designed to avoid further monetary penalties, a desire to avoid the shame and embarrassment the bank’s managers and employees were feeling, or a combination of both? If a combination, which do you think played a bigger role? Why?
As an employee who feels strongly that Wells Fargo is encouraging unethical behavior and making unreasonable demands of its workers, here is an outline of the path I would take as a whistle-blower:
Document Evidence: I would start by gathering as much evidence as possible to support my claims. This could include emails, memos, policy documents, or any other relevant materials that demonstrate the unethical practices and unreasonable demands.
Consult Legal Advice: It is crucial to seek legal advice to understand my rights and protections as a whistle-blower. A lawyer specialized in employment law or whistle-blower protections can guide me through the process and provide valuable advice how to proceed.
Internal Reporting: I would report my concerns internally, following the company's designated channels for reporting unethical behavior or misconduct. This could involve submitting a formal complaint to my supervisor, human resources department, or the company's ethics hotline. It is important to maintain a record of all interactions and communications related to the reporting.
Protect Whistle-blower Status: In some cases, it might be necessary to ensure that my whistle-blower status is protected. This might involve discussing confidentiality measures with my legal counsel or understanding the laws and regulations in place to protect whistle-blowers from retaliation.
External Reporting: If the internal reporting does not yield satisfactory results or if I believe there is a risk of cover-up, I might consider reporting the unethical behavior to external entities. This could include government regulatory agencies, industry watchdogs, or even the media. However, this step should only be taken after careful consideration and legal advice.
Cooperate with Investigations: If investigations are initiated based on the allegations, I would cooperate fully and provide any necessary information or testimony to support the investigation.
Protect Personal Well-being: Whistle-blowing can be emotionally and professionally challenging, so it is essential to seek support from friends, family, or support networks. Taking care of personal well-being during this process is crucial.
Regarding the changes made by Wells Fargo in the wake of the scandal, it is likely that a combination of utilitarian calculation and a desire to avoid shame and embarrassment played a role.
Utilitarian Calculation: The financial penalties faced by Wells Fargo were significant, and making changes to prevent further penalties and restore public trust can be seen as a utilitarian decision. By dismantling the sales incentive system, firing employees involved in the unethical behavior, and making organizational changes, Wells Fargo aimed to avoid further financial losses and potential legal consequences.
Desire to Avoid Shame and Embarrassment: The scandal at Wells Fargo had a severe impact on the bank's reputation and caused public outrage. The actions taken by the bank could also be driven by a desire to restore its damaged reputation, regain customer trust, and avoid the shame and embarrassment associated with the unethical practices.
It is challenging to determine which factor played a bigger role in the decision-making process. However, given the magnitude of the financial penalties and the potential long-term damage to the bank's reputation, the utilitarian calculation may have had a slightly more significant influence. Nonetheless, both factors likely played a significant role in the changes made by Wells Fargo.
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Suppose people view $1 with certainty in one year as equivalent to b dollars today, 0 ≤ b ≤ 1, where b varies across people. Would you expect people with high values of b to be more or less likely to acquire harmful addictions than people with low values of b? Explain.
People with high values of b are more likely to acquire harmful addictions than people with low values of b. This is because people with high values of b place a higher value on immediate gratification, which is a key factor in addiction.
The value of b represents how much people value immediate gratification. A high value of b means that people are more willing to forgo future rewards in order to obtain immediate pleasure. This is because they place a higher value on the present moment than on the future.
Addiction is a condition in which people are unable to control their use of a substance or activity, even though it is causing them harm. People with addictions often engage in their addictive behavior in order to achieve a short-term feeling of pleasure. This is why people with high values of b are more likely to acquire harmful addictions.
For example, a person with a high value of b might be more likely to start smoking cigarettes because they enjoy the immediate rush of nicotine. Even though they know that smoking is harmful to their health, they may be willing to take the risk in order to experience the pleasure of smoking.
In contrast, a person with a low value of b might be less likely to start smoking cigarettes because they are more focused on the long-term consequences of their actions. They know that smoking is harmful to their health, so they are less likely to engage in this behavior even if it provides them with short-term pleasure.
In conclusion, people with high values of b are more likely to acquire harmful addictions than people with low values of b. This is because people with high values of b place a higher value on immediate gratification, which is a key factor in addiction.
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9. A bond you are evaluating has a 10 percent coupon rate (compounded semiannually), a $1,000 face value, and is 10 years from maturity. ( LG3−4)
a. If the required rate of return on the bond is 6 percent, what is its fair present value?
b. If the required rate of return on the bond is 8 percent, what is its fair present value?
c. What do your answers to parts (a) and (b) say about the relation between required rates of return and fair values of bonds?
(a) The fair present value of the bond is approximately $1,079.07.
(b) The fair present value of the bond is approximately $961.63.
(c) The answers to parts (a) and (b) reveal an inverse relationship between the required rate of return and the fair present value of the bond.
a. To calculate the fair present value of the bond when the required rate of return is 6 percent, we need to discount the future cash flows (coupon payments and face value) to their present value. The bond has a 10 percent coupon rate compounded semiannually, which means it pays a 5 percent coupon every six months for 10 years.
Using the formula for present value of a bond, we can calculate the fair present value (P) as follows:
P = (C / r) * [1 - (1 / (1 + r)^n)] + (F / (1 + r)^n)
Where:
C = Coupon payment
r = Required rate of return
n = Number of periods
F = Face value
In this case, C = $1,000 * 0.10 / 2 = $50 (since it's compounded semiannually), r = 0.06 (6% divided by 2 for semiannual compounding), n = 10 years * 2 (since it's compounded semiannually), and F = $1,000.
Plugging these values into the formula:
P = (50 / 0.06) * [1 - (1 / (1 + 0.06)^20)] + (1,000 / (1 + 0.06)^20)
After performing the calculations, the fair present value of the bond is approximately $1,079.07.
b. Using the same formula, but with a required rate of return of 8 percent (r = 0.08), we can calculate the fair present value of the bond:
P = (50 / 0.08) * [1 - (1 / (1 + 0.08)^20)] + (1,000 / (1 + 0.08)^20)
After performing the calculations, the fair present value of the bond is approximately $961.63.
c. When the required rate of return is lower (6 percent), the fair present value of the bond is higher ($1,079.07). This implies that investors are willing to pay a higher price for the bond, as the bond's coupon payments and face value discounted at a lower rate provide a higher present value.
On the other hand, when the required rate of return is higher (8 percent), the fair present value of the bond decreases to $961.63. This indicates that investors are willing to pay a lower price for the bond, as the bond's future cash flows are being discounted at a higher rate, resulting in a lower present value.
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An option contract is when one party pays consideration to the other to keep the offer open for a certain period of time. O True O False
The given statement "An option contract is when one party pays consideration to the other to keep the offer open for a certain period of time" is true because an option contract is a contract that provides the buyer with the ability to purchase or sell an underlying asset or financial instrument at a predetermined price on a certain date.
One party agrees to buy the option to buy or sell the underlying asset at a certain price, while the other party agrees to sell the option. An option contract is a form of a contract that is commonly used in financial markets to provide the buyer with the option to sell or purchase the underlying asset at a predetermined price. To keep the offer open for a certain period of time, one party pays consideration to the other in an option contract.
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Which of the following cash transfers below results in an overstatement of cash at December 31?
BANK TRANSFER SCHEDULE
DISBURSEMENT
RECEIPT
Transfer
Recorded in Books
Paid by Bank
Recorded in Books
Received by Bank
A.
12/31
1/4
12/31
12/31
B.
1/4
1/5
1/2
1/4
C.
1/2
1/5
12/31
1/4
D.
1/4
1/11
1/4
1/4
E.
12/31
1/2
1/2
1/2
A
B
C
D
E
Correct option is C (1/2) ,it results in an overstatement of cash at December 31 because the transfer is recorded in the books on that date, but the cash is not paid by the bank until January 5.
The key to determining an overstatement of cash is to identify the timing of the recording in the books and the actual disbursement or receipt of cash. In option C, the transfer is recorded in the books on December 31, but the cash is not paid by the bank until January 5.
This creates a situation where the cash transfer is recorded as if it has occurred on December 31, but in reality, the cash has not been disbursed by the bank until a later date. As a result, the cash balance at December 31 is overstated because it includes the cash transfer that has not actually taken place.
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The process of marketing strategy planning is about
Question 37 options:
a) narrowing down possible market opportunities to the most attractive ones.
b) identifying as many market opportunities as can be imagined.
c) figuring out how to offer products at the lowest possible price.
d) creating products that managers like.
e) choosing the most profitable market opportunity, regardless of the firm's current abilities and resources.
The marketing strategy planning process is about narrowing down potential market opportunities to the most attractive ones. This process involves defining the organization's target market and creating a competitive advantage through the creation and delivery of superior value to its target customers.
Situation analysis: This is the initial stage of planning in which an organization assesses its current situation by looking at its strengths, weaknesses, opportunities, and threats (SWOT). Market research is conducted to identify market trends, competitor activity, and customer needs.
Marketing strategy formulation: This stage involves developing a marketing mix that will appeal to the target market, which is chosen in the situation analysis. The marketing mix consists of the product, price, place, and promotion.
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.In the process of reconciling its bank statement for January. Maxi's Clothing's accountant compiles the following information: Cash balance per company books on january 30 $ 7,225 Deposits in transit at month-end $2,300 Outstanding check at month-end $770 Bank service charges $50 An NSP check retuurned on a customer account $880 The adjusted cash balance per the books on january 31 is:
a. $7,015 b. $8.080 c. $7,640 d. $6,295 e. $7,310
The adjusted cash balance per the books on January 31 is $7,015.
Given data, Cash balance per company books on January 30 = $7,225Deposits in transit at month-end = $2,300Outstanding check at month-end = $770Bank service charges = $50An NSP check returned on a customer account = $880
There are two main differences between the company's bank balance and book balance: deposits in transit and outstanding checks.Deposits in transit are customer payments made by check that have not yet cleared the banking system. As a result, the bank has not yet added them to its books. Outstanding checks are checks written and subtracted from the company's book balance but have yet to be cashed or received by the bank.
As a result, the bank has not yet subtracted them from its books.Below is the calculation of the adjusted cash balance per the books on January 31:Add deposits in transit to the balance per company books to calculate the total deposits: Balance per company books = $7,225
Deposits in transit = $2,300Total deposits = $9,525 Subtract outstanding checks from the total deposits to get the correct cash balance:$9,525 - $770 = $8,755Add or subtract any bank errors, such as service charges, and subtract any customer errors, such as returned checks:$8,755 - $50 - $880 = $7,825The final step is to check that the book balance and bank balance are the same by using a bank reconciliation.
The adjusted cash balance per the books on January 31 is therefore $7,015.
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"Which of the following impacts the price (value) of options
Group of answer choices
a. Time to expiration
b. Proximity of strike to stock price
c. All the choices listed
d. Volatility"
All the choices listed, including time to expiration, proximity of strike to stock price, and volatility, impact the price (value) of options.
All the choices listed impact the price (value) of options. Options are derivative contracts that offer the right but not the obligation to buy or sell an underlying asset at a predetermined price and time. The price or value of options fluctuates due to a variety of factors. The main factors that impact the price (value) of options are as follows:
Time to Expiration: The time until an option contract expires is a crucial factor in determining its price. All other factors being equal, the longer the time until expiration, the higher the value of the option. This is because the longer the time until expiration, the greater the possibility of the underlying stock price moving in the option's favor.
Proximity of Strike to Stock Price: The strike price is the price at which the underlying asset can be bought or sold. The closer the strike price is to the current stock price, the higher the value of the option. This is because the option is more likely to move in the money if the strike price is close to the current stock price.
Volatility: Volatility is a measure of how much the price of an underlying asset fluctuates. The higher the volatility of the underlying asset, the higher the value of the option. This is because the greater the volatility, the greater the possibility of the underlying stock price moving in the option's favor.In conclusion, all the choices listed, including time to expiration, proximity of strike to stock price, and volatility, impact the price (value) of options.
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TBSAC00089 Audit Sampling You are preparing to select a sample of accounts receivable for confirmation. Before doing so, you want to refresh your understanding of the risks related to sampling. In particular, you would like to know what nonsampling risk is. Which section of the AICPA Professional Standards addresses this issue and will answer your question?
Nonsampling risk refers to the risk that occurs when an auditor makes an incorrect conclusion based on other factors, rather than errors in audit sampling.
The audit report's reliability can be lowered by nonsampling risk, and the likelihood of detecting material misstatement can be decreased. Nonsampling risk is any risk that arises from conducting an audit other than from sampling. This risk exists in all audits, regardless of the sample size or audit method employed. It is the chance of drawing incorrect conclusions from audit procedures that are not related to sampling.
The American Institute of Certified Public Accountants (AICPA) is the world's largest member association representing the accounting profession, with over 412,000 members in 144 countries. The AICPA establishes auditing standards, provides CPA certification and specializations, works on accounting trends, and offers CPA continuing education.The AICPA Professional Standards are considered the authoritative source for non-governmental GAAP within the United States.
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Discuss two academic findings that contradicts the efficient market hypothesis. Explain why such phenomenon should not exist if a market functions perfectly efficiently. How do ROA and ROI capture different aspect of profitability?
One academic finding that contradicts the efficient market hypothesis is the phenomenon of momentum. Momentum refers to the tendency of stocks that have performed well in the recent past to continue performing well in the near future, and stocks that have performed poorly to continue performing poorly.
This phenomenon has been observed in numerous studies, including Jegadeesh and Titman's 1993 study "Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency". If markets were perfectly efficient, then there should be no persistence in stock returns, as stock prices would immediately incorporate all available information.
Another academic finding that contradicts the efficient market hypothesis is the presence of long-term return anomalies, such as the value premium and the size premium. The value premium refers to the observation that value stocks (i.e. those with a low price-to-book ratio) tend to outperform growth stocks (i.e. those with a high price-to-book ratio) over the long term. The size premium refers to the observation that smaller companies tend to outperform larger companies over the long term. These anomalies have been observed in numerous studies, including Fama and French's 1992 paper "The Cross-Section of Expected Stock Returns". If markets were perfectly efficient, then there would be no persistent differences in stock returns based on characteristics like price-to-book ratio or company size.
The existence of these phenomena suggests that markets are not perfectly efficient and that some investors are able to exploit market inefficiencies to earn excess returns. These inefficiencies can arise from a variety of sources, such as behavioral biases among investors, information asymmetries, or regulatory constraints.
Return on assets (ROA) and return on investment (ROI) are both measures of a firm's profitability, but they capture different aspects of profitability. ROA measures how efficiently a firm uses its assets to generate profits. It is calculated by dividing a firm's net income by its total assets. ROI, on the other hand, measures how effectively a firm uses its resources (both equity and debt) to generate profits. It is calculated by dividing a firm's net income by its total capital (i.e. equity plus debt). In general, a high ROA indicates that a firm is generating profits efficiently relative to its asset base, while a high ROI indicates that a firm is generating profits effectively relative to its total capital.
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Current Attempt in Progress Metlock Co. sells product P-14 at a price of $52 a unit. The per-unit cost data are direct materials $16, direct labour $12, and overhead $12 (75\% variable). Metlock has no excess capacity to accept a special order for 38,000 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. Indicate the net income (loss) that Metlock would realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g. −15,000 or parenthesis, eg. (15,000).) Incremental income (loss) the special order. Metlock Co.
Metlock Co sells product P-14 at a price of $52 per unit. The per-unit cost data are direct materials $16, direct labour $12, and overhead $12 (75% variable). Metlock has no excess capacity to accept a special order for 38,000 units at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. Metlock's incremental income (loss) for the special order would be $570,000.
Metlock Co sells product P-14 at a price of $52 per unit. The per-unit cost data are direct materials $16, direct labour $12, and overhead $12 (75% variable). Metlock has no excess capacity to accept a special order for 38,000 units at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. The special order's incremental income (loss) for Metlock Co. is -$130,000.
Incremental income (loss)The first step is to calculate the contribution margin that Metlock would make per unit if the special order was accepted. The contribution margin is the difference between the price per unit and the variable cost per unit. Metlock's variable cost per unit is $16 + $12 + ($12 x 0.75) = $34.
Therefore, the contribution margin per unit is $52 - $34 = $18.The special order would be for 38,000 units, so Metlock's total contribution margin would be $18 x 38,000 = $684,000.However, there are additional costs that need to be taken into account. There are selling costs of $3 per unit, so the total selling costs would be $3 x 38,000 = $114,000.
Metlock's incremental income (loss) for the special order would be the total contribution margin minus the additional costs. Therefore, the incremental income (loss) would be $684,000 - $114,000 = $570,000.The special order's incremental income (loss) for Metlock Co. is -$130,000.
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The Gallo Company uses a flexible budget and standard costs to aid the planning and control of its machining manufacturing operations. Its costing system for manufacturing has two direct-cost categories (direct materials and direct manufacturing labor-both variable) and two overhead-cost categories (variable manufacturing overhead and fixed manufacturing overhead, both allocated using direct manufacturing labor-hours). At the 50,000 budgeted direct manufacturing labor-hour level for August, budgeted direct manufacturing labor is $1,250,000, budgeted variable manufacturing overhead is $500,000 and budgeted fixed manufacturing overhead is $1,000,000. The following actual results are for August:
Direct materials price variance (based on purchases) $179,300 F
Direct materials efficiency variance 75,900 U
Direct manufacturing labor cost incurred 535,500
Variable manufacturing overhead flexible-budget variance 10,400 U
Variable manufacturing overhead efficiency variance 18,100 U
Fixed manufacturing overhead incurred 957,550
The standard cost per pound of direct materials is $11.50. The standard allowance is 6 pounds of direct materials for each unit of the product. During August, 20,000 units of product were produced. There was no beginning inventory of direct materials. There was no beginning or ending work in process. In August, the direct materials price variance was $1.10 per pound. In July, labor unrest caused a major slowdown in the pace of production, resulting in an unfavorable direct manufacturing labor efficiency variance of $40,000. There was no direct manufacturing labor price variance. Labor unrest persisted into August. Some workers quit. Their replacements had to be hired at higher wage rates, which had to be extended to all workers. The actual average wage rate in August exceeded the standard average wage rate by $0.50 per hour.
1. Compute the following for August:
a. Total pounds of direct materials purchased.
b. Total number of pounds of excess direct materials used.
c. Variable manufacturing overhead spending variance.
d. Total number of actual direct manufacturing labor-hours used.
e. Total number of standard direct manufacturing labor-hours allowed for the units produced.
f. Production-volume variance.
2. Describe how Gallo's control of variable manufacturing overhead items differs from its control of fixed manufacturing overhead items.
In August, Gallo Company purchased 17,250 pounds of direct materials with a negative excess, had a variable manufacturing overhead spending variance, and managed both variable and fixed manufacturing overhead costs.
1. Compute the following for August:
a. Total pounds of direct materials purchased:
The direct materials price variance is based on purchases, so we can calculate the total pounds of direct materials purchased using the direct materials price variance and the standard cost per pound of direct materials.
Direct materials price variance = $179,300 F
Standard cost per pound of direct materials = $11.50
Total pounds of direct materials purchased = Direct materials price variance / (Standard cost per pound of direct materials - Direct materials price variance per pound)
= $179,300 / ($11.50 - $1.10)
= $179,300 / $10.40
= 17,250 pounds
b. Total number of pounds of excess direct materials used:
The excess direct materials used can be calculated by subtracting the standard direct materials allowed from the total pounds of direct materials purchased.
Standard allowance: 6 pounds of direct materials per unit
Units produced: 20,000
Total number of pounds of excess direct materials used = Total pounds of direct materials purchased - (Standard allowance * Units produced)
= 17,250 pounds - (6 pounds * 20,000)
= 17,250 pounds - 120,000 pounds
= -102,750 pounds (negative value indicates less than standard)
c. Variable manufacturing overhead spending variance:
The variable manufacturing overhead spending variance can be calculated using the actual variable manufacturing overhead and the budgeted variable manufacturing overhead.
Actual variable manufacturing overhead = $10,400 U
Budgeted variable manufacturing overhead = $500,000
Variable manufacturing overhead spending variance = Actual variable manufacturing overhead - Budgeted variable manufacturing overhead
= -$10,400 - $500,000
= -$510,400
d. Total number of actual direct manufacturing labor-hours used:
The actual direct manufacturing labor-hours used are given as $535,500.
Total number of actual direct manufacturing labor-hours used = $535,500
e. Total number of standard direct manufacturing labor-hours allowed for the units produced:
The standard direct manufacturing labor-hours allowed can be calculated by multiplying the standard direct manufacturing labor-hours per unit by the units produced.
Standard direct manufacturing labor-hours per unit: 6 hours
Units produced: 20,000
Total number of standard direct manufacturing labor-hours allowed for the units produced = Standard direct manufacturing labor-hours per unit * Units produced
= 6 hours * 20,000
= 120,000 hours
f. Production-volume variance:
The production-volume variance can be calculated by subtracting the total standard direct manufacturing labor-hours allowed from the total actual direct manufacturing labor-hours used.
Total actual direct manufacturing labor-hours used: Given as $535,500
Total standard direct manufacturing labor-hours allowed: Calculated as 120,000 hours
Production-volume variance = Total actual direct manufacturing labor-hours used - Total standard direct manufacturing labor-hours allowed
= 535,500 hours - 120,000 hours
= 415,500 hours
2. Description of control of variable manufacturing overhead items and fixed manufacturing overhead items:
Gallo's control of variable manufacturing overhead items:
Variable manufacturing overhead costs are flexible and change in direct proportion to the level of production or activity.Variances, such as the variable manufacturing overhead spending variance and efficiency variance, are calculated to monitor and control these costs.Variances provide insights into the effectiveness of cost management and identify areas for improvement.Gallo's control of fixed manufacturing overhead items:
Fixed manufacturing overhead costs remain constant regardless of the level of production or activity.The focus of control for fixed manufacturing overhead is on budgeting and allocating these costs based on predetermined rates (such as direct manufacturing labor-hours in this case).Actual fixed manufacturing overhead incurred is compared to the budgeted fixed manufacturing overhead to assess cost performance.Variance analysis may be used to evaluate the efficiency of fixed manufacturing overhead utilization, but it is not as directly linked to production volume as in the case of variable manufacturing overhead.To learn more about cost management, Visit:
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TRUE / FALSE.
An ethical organization should articulate a clear vision of moral integitty in its decision-making process but only at the highest levels of management, not throughout the whole organization Sue of Fore True False
False. An ethical organization should articulate a clear vision of moral integrity throughout the whole organization, not just at the highest levels of management.
Ethical behavior is crucial to maintaining a positive corporate image and reputation, retaining employees, and attracting customers. Therefore, it is essential that all employees are aware of the organization's values and code of ethics.
The role of senior management in promoting ethical behavior is crucial. Leaders must set an example by adhering to ethical principles and holding themselves accountable for their actions. They must also communicate these principles to their employees and ensure that they are understood and followed at all levels of the organization.
However, ethical behavior cannot be limited to only the highest levels of management; it must be embedded in the culture of the company. This means that all employees must be trained on the code of ethics and understand what is expected of them. It also means that there should be systems in place to ensure that ethical behavior is rewarded and unethical behavior is discouraged.
In conclusion, organizations that promote a culture of ethics and integrity throughout the entire organization will create a more positive work environment and avoid negative consequences that can result from unethical behavior. Therefore, it is vital that ethical values are communicated and practiced at all levels of the organization.
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Problem 25
Intro
You have $7,000 to invest. You've done some security analysis and generated the following data for three stocks and Treasury bills, including weights in the optimal risky portfolio (ORP) from doing Markowitz portfolio optimization:
Security Stock A Stock B Stock C T-bills
Expected return (%) 12 9 5 1
Variance 0.04 0.03 0.02 0
Beta 1.2 1.5 0.8 0
Weight in ORP (%) 52 18 30 0
Attempt 1/10 for 10 pts.
Part 1
What is the expected return of the optimal risky portfolio (ORP)?
Attempt 1/10 for 10 pts.
Part 2
How much money should you invest in the ORP to achieve an expected return of 6% for the complete portfolio (in $)?
Attempt 1/10 for 10 pts.
Part 3
If you want to achieve an expected return of 6% for the complete portfolio, how much money should you invest in stock A (in $)?
Part 1:
To calculate the expected return of the optimal risky portfolio (ORP), we need to use the weights and expected returns of each stock in the portfolio. We multiply the weight of each stock by its expected return and sum up the results.
Expected Return of ORP = (Weight of Stock A * Expected Return of Stock A) + (Weight of Stock B * Expected Return of Stock B) + (Weight of Stock C * Expected Return of Stock C)
Expected Return of ORP = (0.52 * 12) + (0.18 * 9) + (0.30 * 5)
Expected Return of ORP = 6.24 + 1.62 + 1.50
Expected Return of ORP = 9.36%
Therefore, the expected return of the optimal risky portfolio (ORP) is 9.36%.
Part 2:
To determine how much money you should invest in the ORP to achieve an expected return of 6% for the complete portfolio, we can use the concept of the investment proportion.
Investment in ORP = Total Portfolio Value * Proportion Invested in ORP
We are given that the total portfolio value is $7,000, and we want the ORP to contribute to a 6% expected return. So, we can set up the equation:
Investment in ORP * Expected Return of ORP = Total Portfolio Value * Expected Return of Complete Portfolio
Investment in ORP * 9.36% = $7,000 * 6%
Investment in ORP = ($7,000 * 6%) / 9.36%
Investment in ORP ≈ $4,462.61
Therefore, you should invest approximately $4,462.61 in the optimal risky portfolio (ORP) to achieve an expected return of 6% for the complete portfolio.
Part 3:
To determine how much money you should invest in Stock A to achieve an expected return of 6% for the complete portfolio, we can use the concept of the investment proportion.
Investment in Stock A = Total Portfolio Value * Proportion Invested in Stock A
We are given that the total portfolio value is $7,000, and we want the expected return of the complete portfolio to be 6%. So, we can set up the equation:
Investment in Stock A * Expected Return of Stock A = Total Portfolio Value * Expected Return of Complete Portfolio
Investment in Stock A * 12% = $7,000 * 6%
Investment in Stock A = ($7,000 * 6%) / 12%
Investment in Stock A ≈ $3,500
Therefore, you should invest approximately $3,500 in Stock A to achieve an expected return of 6% for the complete portfolio.
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Consider a duopolistic market with an inverse demand curve P(Q) = 500 − 4Q and constant marginal costs for each firm that are given by MC(Q) = 20. Assume fixed costs are negligible. The two identical firms are competing in this market by choosing their production quantities simultaneously. In the equilibrium, each firm produces 40 units and the prevailing market price is 180. How would the joint profits of these two firms change if they successfully formed a cartel. Change in joint profits: ? (Enter your answer rounded to two decimal places; include a negative sign if appropriate.)
The change in joint profits if the firms successfully formed a cartel would be -6,400 (negative).
The joint profits of the two firms would increase if they successfully formed a cartel.
To calculate the change in joint profits, we need to compare the joint profits under competition to the joint profits under the cartel.
Under competition:
Each firm produces 40 units, resulting in a total market quantity of 80 units.
Market price (P) is given as 180.
Total revenue (TR) under competition:
TR = P * Q = 180 * 80 = 14,400.
Total costs (TC) under competition:
TC = MC * Q = 20 * 80 = 1,600.
Joint profits under competition:
Joint Profits = TR - TC = 14,400 - 1,600 = 12,800.
Under the cartel:
The cartel acts as a single entity, deciding on a joint quantity to maximize profits.
To find the joint quantity that maximizes profits, we look for the quantity that maximizes total revenue minus total costs. In this case, total revenue is given by TR = P * Q, and total costs are given by TC = MC * Q.
To find the joint quantity, we set marginal revenue (MR) equal to marginal cost (MC) for the cartel:
MR = MC.
The marginal revenue is the derivative of the total revenue with respect to quantity:
MR = d(TR)/dQ.
Given that P(Q) = 500 - 4Q, we can calculate MR as the derivative of this equation:
MR = d(500 - 4Q)/dQ = -4.
Setting MR equal to MC:
-4 = 20.
Solving for the joint quantity (Q) under the cartel:
Q = 40.
Since each firm produces half of the joint quantity, the quantity produced by each firm under the cartel is also 40 units.
Total revenue (TR) under the cartel:
TR = P * Q = 180 * 40 = 7,200.
Total costs (TC) under the cartel:
TC = MC * Q = 20 * 40 = 800.
Joint profits under the cartel:
Joint Profits = TR - TC = 7,200 - 800 = 6,400.
To find the change in joint profits:
Change in Joint Profits = Joint Profits under cartel - Joint Profits under competition
= 6,400 - 12,800
= -6,400.
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The sales budget for the first three months of the coming year is expected to be $20,000, $30,000 and $40,000 with 50% of each month's sales being on credit. Collections of accounts receivable are scheduled at 50% during the month of sale, 50% is collected in the month following. Due to excellent collection practices, the company has no bad debts. The total budgeted cash receipts from sales for the second month of the coming year will be:
a.$30,000
b.$20,000
c.$12,500
d. $27,500
The total credit sales for the first three months of the year will be:
Month 1: $20,000 x 50% = $10,000
Month 2: $30,000 x 50% = $15,000
Month 3: $40,000 x 50% = $20,000
The total credit sales for the second month and the following month will be:
Month 2: $15,000 x 50% = $7,500 to be collected during the month of sale
Month 3: $20,000 x 50% = $10,000 to be collected in the following month
Therefore, the total budgeted cash receipts from sales for the second month of the coming year will be:
$7,500 + $10,000 = $17,500
Thus, the correct option is not provided in the given choices.
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An investor is interested in opening a company t-shirt company that going to produce a range of plain, undecorated sports t-shirts in a wide range of colors and sizes to fit men, women and children. As an engineer involved in developing a suitable manufacturing system for the company that can produced to meet market demand. The manufacturing system that would be design and develop need to be properly distinguish. In addition, the need of material handling functions as well as flexibility also must be properly identified. You are task to prepare a technical report. In the technical report you must answer the following questions:
In classifying a manufacturing system, various factors can be used to distinguish the manufacturing system. Lists and elaborate the 4 (FOUR) factors that relevant in distinguish the manufacturing system.
Manufacturing system is a process of manufacturing a product and classifying a manufacturing system depends on several factors.
The four factors that are relevant in distinguishing the manufacturing system are as follows:Factors of manufacturing system are a must for the creation of a manufacturing company that is interested in developing a suitable manufacturing system to produce plain, undecorated sports t-shirts in a wide range of colors and sizes for men, women, and children to meet market demand.
1. Production Quantity: Production quantity can be used to classify a manufacturing system as a continuous production system or an intermittent production system. The continuous production system produces a constant flow of products, whereas the intermittent production system produces goods in batches.
2. Types of production process: Production process can be classified as a job shop, batch production, mass production, or continuous production, and it depends on the nature of the product and the demand for the product. Job shop production produces a product as per customer’s demand; batch production produces a product in batches, mass production produces a large volume of goods, and continuous production produces a constant flow of goods.
3. The level of Automation: Level of automation can be classified as manual, semi-automatic, and automatic, which depends on the level of equipment and machinery used in production.
4. Flexibility: Flexibility can be classified as a low level of flexibility or a high level of flexibility. The level of flexibility depends on the complexity of the product and the demand for the product. A high level of flexibility is required for a company that produces a wide range of products.
For producing plain undecorated sports t-shirts in a wide range of colors and sizes for men, women, and children, a high level of flexibility is required.
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Consider the following demand and supply schedules for pain killers: D:Q=100−P S:Q=9P 4a. Consider a legislated
price fl
floor set at P=12 : What is the marginal benefit of pain killers before and after this price floor imposed? Are consumers better off or worse off with the price floor? Explain. 4b. What is the dollar value of the deadweight loss from the price floor? Show your work.
4a. The marginal benefit of pain killers before the price floor is imposed can be calculated by finding the price at which the quantity demanded equals 1 unit less than the quantity supplied.
In this case, the quantity demanded before the price floor is imposed is Q = 100 - P and the quantity supplied is Q = 9P. Setting these two equations equal to each other, we have 100 - P = 9P. Solving for P, we get P = 10. Therefore, the marginal benefit before the price floor is $10.
After the price floor is imposed at P = 12, the quantity demanded is Q = 100 - P = 100 - 12 = 88. The quantity supplied remains the same at Q = 9P = 9(12) = 108. Therefore, the marginal benefit after the price floor is $12.
Consumers are worse off with the price floor because the price has increased from $10 to $12. This means they have to pay more for pain killers, reducing their surplus.
4b. To calculate the deadweight loss from the price floor, we need to find the area of the triangle formed by the quantity difference between the quantity demanded and supplied at the price floor.
Before the price floor, the quantity demanded is 88 and the quantity supplied is 108. The difference is 108 - 88 = 20 units.
The deadweight loss is equal to one-half times the difference in quantity squared, multiplied by the price. Therefore, the deadweight loss is [tex]1/2 * (20)^2 * 12 = 240 * 12 = $2880.[/tex]
The dollar value of the deadweight loss from the price floor is $2880.
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An aging of Flyer Co.'s accounts receivable balance indicates that $7,600 are estimated to be uncollectible. If the Allowance for Doubtful Accounts has a $2.300 debit balance, the adjustment to record bad debts for the period will require a OA a credit to Allowance for Doubtful Accounts for $7,600. OB. a debit to Bad Debt Expense for $5,300. OC. a debit to Allowance for Doubtful Accounts for $5,300. OD. a debit to Bad Debt Expense for $9,900.
The correct answer is OB. a debit to Bad Debt Expense for $5,300.
The adjustment to record bad debts for the period will require a debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts.
The estimated uncollectible amount is $7,600, but we already have a $2,300 debit balance in the Allowance for Doubtful Accounts.
To determine the required adjustment, we need to calculate the difference between the estimated uncollectible amount and the existing debit balance in the allowance account.
$7,600 (estimated uncollectible amount) - $2,300 (existing debit balance in allowance account) = $5,300
Therefore, the adjustment to record bad debts for the period will require a debit to Bad Debt Expense for $5,300 and a credit to Allowance for Doubtful Accounts for $5,300.
The correct answer is OB. a debit to Bad Debt Expense for $5,300.
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The survival of this former state-owned monopoly is at stake.
The former CEO and head of Human Resources have been found guilty of institutional harrassment resulting in deaths.
The Board of Directors has hired your company to present a plan for going forward which will overcome the toxic environment and reposition the company.
The situation faced by the former state-owned monopoly is a serious one that requires immediate and decisive action. In order to move forward and overcome the toxic environment created by institutional harassment resulting in deaths, the company needs to take a number of steps.
Firstly, it must acknowledge the issue and take steps to address it. This may involve terminating employees responsible for the harassment, implementing new policies and procedures to ensure workplace conduct is respectful and appropriate, and providing support and resources to affected employees.
Secondly, the company must communicate with all stakeholders, including employees, customers, suppliers, and shareholders, to inform them of the situation and the actions being taken to address it. This communication should emphasize the company's commitment to creating a safe and inclusive workplace culture.
Thirdly, the company should develop a new mission statement that reflects its focus on delivering value to customers while promoting a positive and respectful workplace culture.
Fourthly, the company should review and revise its internal processes, including hiring practices, performance evaluations, and promotion criteria, to ensure they are fair, equitable, and promote diversity and inclusion.
Fifthly, the company should provide training and development opportunities for employees on topics such as diversity and inclusion, conflict resolution, and ethical behavior.
Finally, the company should monitor its progress towards achieving its goals and objectives related to creating a safe and inclusive workplace culture, using employee surveys and key performance indicators to guide ongoing improvement efforts.
By taking these steps, the company can reposition itself as a leader in creating a positive and respectful workplace culture, while also delivering value to customers and generating sustainable profits. It will require strong leadership and a clear commitment to change, but it is possible to turn the situation around and regain the trust of stakeholders.
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A company purchased a delivery van on October 1 of the current year at a cost of 357,000 . The van is expected to last seven year and has salvage value of $ 1.000. The company's annual accounting period ends on December, 31 . 1. What is the entry the company will makes on December 31 of the current year, assaming the straight-line method is used? 2. What is the book value of the Van at the end of the secod year
1) This entry debits the Depreciation Expense account by the annual depreciation amount of $51,000 and credits the Accumulated Depreciation account.
2) The book value of the van at the end of the second year would be $255,000.
1. To record depreciation expense for the current year using the straight-line method, the company would make the following entry on December 31:
Depreciation Expense (Income Statement) $51,000
Accumulated Depreciation (Balance Sheet) $51,000
This entry debits the Depreciation Expense account by the annual depreciation amount of $51,000 and credits the Accumulated Depreciation account, which is a contra-asset account used to track the cumulative depreciation over time.
2. To determine the book value of the van at the end of the second year, we need to calculate the total depreciation expense for the two-year period and subtract it from the original cost of the van:
Depreciation Expense per Year = (Cost - Salvage Value) / Useful Life
Depreciation Expense per Year = ($357,000 - $1,000) / 7
Depreciation Expense per Year = $51,000
Total Depreciation Expense for 2 Years = Depreciation Expense per Year * Number of Years
Total Depreciation Expense for 2 Years = $51,000 * 2
Total Depreciation Expense for 2 Years = $102,000
Book Value at the End of the Second Year = Cost - Total Depreciation Expense for 2 Years
Book Value at the End of the Second Year = $357,000 - $102,000
Book Value at the End of the Second Year = $255,000
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Can someone explain what I'm looking for and how to get the answer.
You are a developer looking to invest in a rental property you intend to lease out for 20 years before selling. Your market research tells you that the net rent you can expect to earn from the building is $3M/year and the building value will be approximately $22M at the end of 20 years. If you want to earn a minimum of 10%/year, what is the maximum you should invest to develop the property
To calculate the maximum amount you should invest to develop the property, you need to determine the present value of the future cash flows. Here's how you can do it:
1. Determine the future value (FV) of the property after 20 years, which is $22M.
2. Calculate the present value (PV) of the net rent you can expect to earn annually for 20 years.
Since the net rent is $3M/year, and you want to earn a minimum of 10%/year, you can use the formula [tex]PV = FV / (1 + r)^n[/tex], where r is the annual interest rate and n is the number of years. In this case, r = 10% or 0.1, and n = 20.
Therefore, [tex]PV = $3M / (1 + 0.1)^20.[/tex]
3. Add the present value of the net rent to the present value of the future value of the property to get the maximum amount you should invest. This can be calculated as PV + FV.
By following these steps, you should be able to determine the maximum amount you should invest to develop the property.
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Compute the discounted payback statistic for Project C if the appropriate cost of capital is 6 percent and the maximum allowable discounted payback period is three years. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Project C
Time : 0 1 2 3 4 5
Cash Flow : 2,700 1,160 990 1,030 640 440
Answer is complete but not entirely correct. Should the project be accepted or rejected?
o accepted
o rejected
The project's total discounted cash flows exceed the 2,700 initial investment within three years, making the discounted payback period shorter than the maximum allowed period of three years. Therefore, the project should be approved.
To compute the discounted payback statistic for Project C, we need to calculate the discounted cash flows for each year and determine how long it takes for the cumulative discounted cash flows to exceed the initial investment.
The discounted cash flow for each year can be calculated using the formula:
Discounted Cash Flow = Cash Flow / (1 + Cost of Capital)^Year
We know:
Cost of Capital = 6%
Maximum Allowable Discounted Payback Period = 3 years
Cash Flows: 2,700, 1,160, 990, 1,030, 640, 440
Calculating the discounted cash flows:
Year 0: 2,700 / (1 + 0.06)⁰ = 2,700
Year 1: 1,160 / (1 + 0.06)¹ ≈ 1,094.34
Year 2: 990 / (1 + 0.06)² ≈ 881.68
Year 3: 1,030 / (1 + 0.06)³ ≈ 881.68
Year 4: 640 / (1 + 0.06)⁴ ≈ 521.25
Year 5: 440 / (1 + 0.06)⁵ ≈ 348.41
Next, we calculate the cumulative discounted cash flows:
Year 0: 2,700
Year 1: 2,700 + 1,094.34 ≈ 3,794.34
Year 2: 3,794.34 + 881.68 ≈ 4,676.02
Year 3: 4,676.02 + 881.68 ≈ 5,557.70
Year 4: 5,557.70 + 521.25 ≈ 6,078.95
Year 5: 6,078.95 + 348.41 ≈ 6,427.36
Based on the calculations, the cumulative discounted cash flows exceed the initial investment of 2,700 within the third year. Therefore, the discounted payback period is less than the maximum allowable period of three years.
Conclusion: The project should be accepted since the discounted payback period is less than the maximum allowable period.
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54.
Briefly explain the features of an organization's mission.
An organiztion's mission is its reason for being, and it reflects the company's values, objectives, and purpose.
The following are the features of an organization's mission:
Briefness: A mission statement should be short and concise, making it simple to communicate and understand. It should be able to be read quickly, and it should be easily remembered.
Clearly Stated: The mission statement should be unambiguous, straightforward, and easy to comprehend.
Purpose: It should communicate the company's purpose, defining what it stands for, and the reason for its existence.
Audience: A mission statement should be written for a specific target audience, which is often the firm's employees, clients, or stakeholders.
Visionary: A mission statement should be visionary in that it should describe the company's vision and aspirations, which can be used to inspire and motivate workers.
An organization's mission statement should be brief, clearly stated, purposeful, audience-specific, and visionary. It serves as the company's foundation, providing a framework for strategic planning, decision-making, and day-to-day operations. A well-crafted mission statement can inspire and motivate employees, as well as stakeholders, to work together toward a common goal.
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You are given the following information about item A123: Semi-annual Demand (D) = 5,000 units per year, Ordering/Set up cost (S) = $16 per order, and Holding cost (H) = $2.00 per unit per year. (2 mark) a. Calculate the Economic Order Quantity EOQ = ? b. Using EOQ amount, calculate total annual ordering cost (TC) Number of orders per year, N = ? (ii) Total Cost (TC) = ? c. If there are 250 working days in a year, then 4 (i) Calculate daily demand (d) = (2 mark) (2 mark) (i)
a. Economic Order Quantity (EOQ) is approximately 400 units.The daily demand (d) is 20 units. b total annual ordering cost $16 per order. c daily demand (d) is 20 units.
To calculate the Economic Order Quantity (EOQ), we can use the following formula: EOQ = sqrt((2 * D * S) / H) where: D = Semi-annual Demand = 5,000 units per year S = Ordering/Set up cost = $16 per order H = Holding cost = $2.00 per unit per year
a. Calculate the Economic Order Quantity (EOQ): EOQ = sqrt((2 * 5,000 * 16) / 2) EOQ = sqrt(160,000) EOQ ≈ 400 units Therefore, the Economic Order Quantity (EOQ) is approximately 400 units.
b. To calculate the total annual ordering cost (TC) and the number of orders per year (N), we can use the following formulas: N = D / EOQ TC = D * S / EOQ where: D = Annual Demand = 5,000 units per year EOQ = Economic Order Quantity = 400 units S = Ordering/Set up cost = $16 per order
b. Calculate the number of orders per year (N): N = 5,000 / 400 N = 12.5 Since the number of orders cannot be a decimal, we round it up to the nearest whole number. N ≈ 13 orders per year
c. Calculate the total cost (TC): TC = 5,000 * 16 / 400 TC = $200 Therefore, the total annual ordering cost (TC) is $200. c. If there are 250 working days in a year, then: d. Calculate daily demand (d): d = D / number of working days d = 5,000 / 250 d = 20 units per day Therefore, the daily demand (d) is 20 units.
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Keri & Nick Consulting's partners' equity accounts reflected the following balances on August 31, 2020: Keri Lee, Capital Nick Kalpakian, Capital $ 76,000 211,000 Lee and Kalpakian share profit/losses in a 2:3 ratio, respectively. On September 1, 2020, Liam Court is admitted to the partnership with a cash investment of $123,000. Required: Prepare the journal entry to record the admission of Liam under each of the following unrelated assumptions, where he is given a. A 30% interest in equity
By recording the admission of Liam with a 30% interest in equity and assuming his investment is directly allocated to the partners' capital accounts, the journal entry properly reflects the changes in the partners' equity. Keri and Nick each receive 30% of Liam's investment,
Under the assumption that Liam's investment is recorded directly to the capital accounts, the journal entry is made to reflect the changes in the partners' equity.Keri and Nick each receive 30% of Liam's investment amount, which is calculated as 30% of $123,000, resulting in $36,900 for each of them.Liam's capital account is credited with the remaining 40% of his investment, which is $49,200 (calculated as 40% of $123,000).
By recording the admission of Liam with a 30% interest in equity and assuming his investment is directly allocated to the partners' capital accounts, the journal entry properly reflects the changes in the partners' equity. Keri and Nick each receive 30% of Liam's investment, while Liam's capital account is credited with the remaining portion of his investment.
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The COVID-19 pandemic resulted in uncertainty and disruptions for many retailers. Describe how a local retailer might be better prepared for future disruptions. In your plan, include suggestions for how the retailer might leverage digital formats to improve its resiliency.
In order to be better prepared for future disruptions, a local retailer must take several steps. One of the most important steps is to improve its resiliency by leveraging digital formats. A few suggestions for doing so include There are several steps a local retailer
Another way to improve resiliency is to offer delivery and curbside pickup. By offering these options, customers can continue to shop with the retailer even if they are not comfortable going into the store. This is especially important during times of disruption when customers may be hesitant to go out in public. Creating a loyalty program is another way to improve resiliency.
By offering rewards and discounts to repeat customers, a retailer can increase customer loyalty and improve its bottom line. Invest in E-Commerce Finally, investing in e-commerce is another way to improve resiliency. By offering customers the ability to purchase products online, a retailer can continue to generate revenue even if its physical stores are the closed. To summarize, a local retailer can be better prepared for future disruptions by improving its resiliency. they are Suggestions for doing so include establishing an online presence, using social media, offering delivery and curbside pickup, creating a loyalty program, and investing in e-commerce. By taking these steps, a retailer can continue to generate revenue and meet the needs of its customers even during times of uncertainty and disruption.
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