Based on the information provided, it is not possible to determine the appropriate cost system for Ketcher, Tryer, and Friar, attorneys-at-law. This is because the information does not specify the type of services provided by the business or the nature of its activities.
Without this information, it is difficult to determine the most appropriate cost system to use. However, in general, professional services firms such as law firms tend to use activity-based costing systems as they have diverse activities and services that are not easily traced to a specific product or service..
Activity-based costing systems are more effective in capturing the costs of these activities and allocating them to the products or services that consume them.
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Government promises to keep unions in check makes which one of the following regions attractive for company locationâ selection? A. Asia B. Middle East
Asia of the following regions is appealing to business location choices because of government commitments to keep unions in check Asia.
Which international staffing strategy looks for the best candidates for critical positions regardless of nationality?An ethnocentric hiring strategy looks for nationals of the host country for all key posts, whereas a polycentric hiring strategy looks for the best candidates for key positions regardless of nationality.
Who are the three different categories of workers in an international company?Employees of an international organisation can be generically characterised as belonging to the parent country, the host country, or a third country. The employee's classification as a PCN, HCN, or TCN is based on their nationality.
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increases in the fraction of national debt held by foreigners _____ the burden of debt service on future generations _____.
a.
increase; because foreign bondholding pushes up interest rates at the date of issue, increasing crowding out
b.
decrease; because it is easier for the borrowing nation to default on the debt
c.
increase; because taxes to repay the debt are collected within the country but more interest payments on the debt are sent outside
d.
decrease; but may make the country more vulnerable to foreign intervention
e.
decrease; because debt servicing accomplished by increases in the money supply is not as inflationary as it would be if all debt were held domestically
The correct answer is c. Increases in the fraction of national debt held by foreigners increase the burden of debt service on future generations because taxes to repay the debt are collected within the country but more interest payments on the debt are sent outside.
The statement above means that a larger portion of the country's income is being used to service the debt, which can lead to higher taxes and reduced government spending on other programs. Additionally, foreign bondholding may push up interest rates at the date of issue, increasing crowding out and making it more difficult for the government to finance its spending. Thus, increases in the fraction of national debt held by foreigners increase the burden of debt service on future generations because taxes to repay the debt are collected within the country but more interest payments on the debt are sent outside. The correct answer is option c.
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Describe the role of the Five Whys in understanding the role of human error in systems performance.How does the text match or not match with Dr. Deming's work?
The role of the Five Whys in understanding human error in systems performance is to identify the root cause of a problem by repeatedly asking "Why?" until the true source of the issue is uncovered.
This technique helps to delve beyond symptoms and reach the underlying factors that contribute to human error. Here's a step-by-step explanation of how the Five Whys method works:
1. Begin with the observed problem or error in system performance.
2. Ask "Why?" to determine the immediate cause of the problem.
3. Continue asking "Why?" for each subsequent cause, focusing on human actions or decisions that contributed to the issue.
4. Repeat this process until the root cause is identified, typically after asking "Why?" five times.
5. Develop and implement corrective actions to address the root cause and prevent future occurrences.
As for the connection between the Five Whys and Dr. Deming's work, Dr. Deming emphasized the importance of continuous improvement, root cause analysis, and understanding the system as a whole.
The Five Whys technique aligns with Dr. Deming's philosophy by focusing on identifying the underlying cause of a problem rather than merely addressing symptoms. However, the Five Whys method might not fully match Dr. Deming's approach, as he advocated for a more comprehensive and systematic approach to problem-solving, such as his Plan-Do-Study-Act (PDSA) cycle.
In conclusion, the Five Whys plays a significant role in understanding human error in systems performance by helping identify root causes of problems. While it shares some similarities with Dr. Deming's work, the Five Whys might not be as comprehensive as the approaches he advocated for.
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Olney Science Corporation has total assets of $375,000 and total debt of $100,000. If it has 40,000 shares outstanding, what is the book value per share?
A. $3.75
B. $4.38
C. $5.00
D. $5.63
E. $6.25
F. $6.88
G. $7.50
H. $8.13
The book value per share is Option F. $6.88.
The book value per share can be calculated by subtracting total debt from total assets and dividing the result by the number of shares outstanding.
Book value per share = (Total assets - Total debt) / Number of shares outstanding
Plugging in the values given in the question, we get:
Book value per share = ($375,000 - $100,000) / 40,000
Book value per share = $275,000 / 40,000
Book value per share = $6.88
Therefore, the answer is F. $6.88.
This can be calculated in another way:
1. Subtract the total debt from the total assets to find the company's equity:
Equity = Total Assets - Total Debt
Equity = $375,000 - $100,000
Equity = $275,000
2. Divide the equity by the number of shares outstanding to find the book value per share:
Book Value per Share = Equity / Shares Outstanding
Book Value per Share = $275,000 / 40,000
Book Value per Share = $6.88
So, the book value per share for Olney Science Corporation is $6.88, which corresponds to option F.
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If a person with multiple sources of debt has a goal of eliminating one or more of them in as little time as possible, which debt repayment strategy would be best?
Simply explained, the "snowball strategy" entails paying down the lowest of all of your loans as soon as feasible. After that debt has been paid in full.
You transfer the funds you were using to make that payment to the subsequent smallest debt repayment . In a perfect world, this procedure would go on until all accounts were settled. Making minimal payments on all debts and paying off the smallest balances first before moving on to larger ones are part of the debt snowball strategy.
The debt avalanche strategy, which calls for discipline, can eventually lead to paying less interest. Pay each debt the bare minimum each month, but put all of your additional money toward the one with the highest interest rate. The "avalanche" method of debt payback is another name for this.
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Correct Question:
If a person with multiple sources of debt has a goal of eliminating one or more of them in as little time as possible, what type of debt repayment strategy would be best?
a three-month treasury bill has a yield of 3% while the yield on a ten-year treasury bond is 7%. what is the risk premium of the typical a-rated ten-year corporate bond with a yield of 9.6%?
The risk premium of the typical A-rated ten-year corporate bond is 2.6%
To calculate the risk premium of the typical A-rated ten-year corporate bond, we first need to understand what the risk premium is. The risk premium is the additional return that an investor expects to receive for taking on a higher level of risk compared to a risk-free investment, such as a treasury bill.
In this scenario, the risk-free rate can be determined by the yield on the three-month treasury bill, which is 3%. The difference between the yield on the ten-year treasury bond and the three-month treasury bill is known as the term premium, which is 7% - 3% = 4%.
To calculate the risk premium of the typical A-rated ten-year corporate bond, we need to compare its yield to the yield on the ten-year treasury bond. The yield on the A-rated ten-year corporate bond is 9.6%, which is 2.6% higher than the yield on the ten-year treasury bond (9.6% - 7% = 2.6%).
Therefore, the risk premium of the typical A-rated ten-year corporate bond is 2.6%. This means that investors expect to receive an additional 2.6% return for taking on the risk of investing in an A-rated corporate bond compared to a risk-free investment like a treasury bill.
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the graph shows the marginal social cost, marginal private cost, and demand curves in the aux cable market. if the government uses a quota to control an externality in this market, what quantity would be chosen as a limit on sales?
To control an externality in the aux cable market using a quota, the government would set a limit on the quantity of aux cables that can be sold. The optimal quantity limit would be the point where the marginal social cost (MSC) curve intersects the demand curve.
This is because the MSC curve represents the total cost of producing the product, including any external costs imposed on society, while the demand curve represents the willingness of consumers to pay for the product. By setting the quota at this quantity, the market will achieve the optimal level of production that balances the benefits to consumers with the costs imposed on society.
Looking at the graph, the intersection of the MSC curve and the demand curve occurs at a quantity of 8 units. Therefore, a quantity limit of 8 units would be chosen as the optimal quota to control the externality in this market.
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Full Question ;
Use the graph to answer the question. Marginal Price social Marginal cost private $18 cost $15 $12 $9 $6 $3 0 2 6 8 10 Demand 12 Quantity The graph shows the marginal social cost, marginal private cost, and demand curves in the aux cable market. If the government uses a quota to control an externality in this market, what quantity would be chosen as a limit on sales?
tax rules require that companies use which method of inventory valuation when applying lcnrv (unless it is not practical to do so)?
Tax rules require that companies use the Last-In, First-Out (LIFO) method of inventory valuation when applying Lower of Cost or Net Realizable Value (LCNRV), unless it is not practical to do so.
Tax rules require companies to use the Last-In, First-Out (LIFO) method of inventory valuation when applying Lower of Cost or Net Realizable Value (LCNRV), unless it is not practical to do so. Under LIFO, the last items added to inventory are the first ones sold, which can result in a higher cost of goods sold and a lower taxable income. This method can provide tax benefits to companies during periods of rising prices, but may not reflect the actual physical flow of goods. However, if LIFO is not practical, a company can use other inventory valuation methods, such as First-In, First-Out (FIFO) or Weighted Average Cost (WAC).
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The Entry To Record The Receipt Of Payment Within The Discount Period On A Sale Of 5800 With Terms Of 2/13. N/30 Will Include A a. Debit To Sales Revenue For $784. b. Credit To Sales Discounts For $16. c. Credit To Sales Revenue For $800. d. Credit To Accounts Receivable For $800.
The entry to record the receipt of payment within the discount period on a sale of $5,800 with terms of 2/13, n/30 will include: a credit to Sales Discounts for $16. The correct option is B.
Here is a step-by-step explanation:1. First, calculate the discount amount: $5,800 x 0.02 (2% discount) = $116.
2. Next, determine the net amount of the payment received: $5,800 - $116 = $5,684.
3. Record the receipt of payment by debiting Cash for the net amount received ($5,684) and crediting Accounts Receivable for the full invoice amount ($5,800).
4. Finally, record the sales discount by debiting Accounts Receivable for the discount amount ($116) and crediting Sales Discounts for $16.
This entry reflects the discount taken by the customer for making the payment within the specified discount period.
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Complete question:
The Entry To Record The Receipt Of Payment Within The Discount Period On A Sale Of 5800 With Terms Of 2/13. N/30 Will Include:
a. Debit To Sales Revenue For $784.
b. Credit To Sales Discounts For $16.
c. Credit To Sales Revenue For $800.
d. Credit To Accounts Receivable For $800.
Current Situation $100,000 $55,000 (55%) $20,000 (20%) $15,000 (15%) $10,000 (10%) a) What percentage improvement is needed in the supply chain strategy for profit to improve to $15,000? What is the cost of material with a $15,000 profit? A decrease of 9.1 % in material (supply-chain) costs is required to yield a profit of $15,000, for a new material cost of $ 50,000. (Enter your response for the percentage decrease to one decimal place and enter your response for the new material cost as a whole number.) b) What percentage improvement is needed in the sales strategy for profit to improve to $15,000? What must sales be for profit to improve to $15,000? increase of % in sales is required to yield a profit of $15,000 for a new new level of sales of (Enter your response for the percentage increase to one decimal place and enter your response for the new sales as a whole number.)
Supply chain strategy refers to the plan or approach that an organization uses to manage the flow of goods, services, and information from the suppliers to the end customers.
a) To find the percentage improvement needed in the supply chain strategy for profit to improve to $15,000, you can follow these steps:
1. Calculate the current profit: $100,000 (sales) - $55,000 (material costs) = $45,000.
2. Determine the desired profit: $15,000.
3. Calculate the new material cost needed for a $15,000 profit: $100,000 (sales) - $15,000 (profit) = $85,000.
4. Calculate the difference in material cost: $55,000 (current material cost) - $85,000 (new material cost) = -$30,000.
5. Calculate the percentage improvement required: (|$30,000| ÷ $55,000) × 100 = 54.5%.
So, a 54.5% improvement in the supply chain strategy is needed for profit to improve to $15,000. The new material cost will be $85,000.
b) To find the percentage improvement needed in the sales strategy for profit to improve to $15,000, follow these steps:
1. Calculate the current profit: $100,000 (sales) - $55,000 (material costs) = $45,000.
2. Determine the desired profit: $15,000.
3. Calculate the new sales level needed for a $15,000 profit: $55,000 (material costs) + $15,000 (profit) = $70,000.
4. Calculate the difference in sales: $70,000 (new sales) - $100,000 (current sales) = -$30,000.
5. Calculate the percentage improvement required: (|$30,000| ÷ $100,000) × 100 = 30.0%.
A 30.0% improvement in the sales strategy is needed for profit to improve to $15,000. The new sales level must be $70,000.
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what should you do when delivering the bad news to your organization? check all that apply. offer little explanation offer a clear, sincere explanation communicate the news openly let employee rumors communicate the news'
When delivering bad news to an organization, the following actions should be taken: Offer a clear, sincere explanation, Communicate the news openly Therefore, the correct options are B) offer a clear, sincere explanation and C) communicate the news openly.
Offering little explanation or letting employee rumors communicate the news are not appropriate actions when delivering bad news to an organization. It is important to be transparent and honest in order to maintain trust and respect from employees.
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Full Question;
what should you do when delivering the bad news to your organization? check all that apply.
A offer little explanation
B offer a clear, sincere explanation
C communicate the news openly
D let employee rumors communicate the news'
the effective-interest method of amortization is considered a conceptually superior method of accounting for bonds.truefalse
The given statement is "the effective-interest method of amortization is considered a conceptually superior method of accounting for bonds" is True ( because it reflects the actual interest expense incurred by the company over the life of the bond).
This method calculates interest expense based on the carrying value of the bond multiplied by the effective interest rate, which takes into account the original discount or premium on the bond as well as any subsequent changes in interest rates.
As a result, the effective-interest method provides a more accurate representation of the true cost of borrowing and produces a smoother pattern of interest expense over time compared to the straight-line method of amortization.
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If ending inventory for 20x5 is understated because certain items were missed in the count, then:
a. Net income for 20x5 will be understated, but net income for 20x6 will be unaffected.
b. Net income for 20x5 will be understated and CGS for 20x6 will be understated.
c. CGS for 20x5 will be understated.
d. Net income for 20x5 will be overstated.
If ending inventory for 20x5 is understated because certain items were missed in the count, then the correct option is: b. Net income for 20x5 will be understated and CGS for 20x6 will be understated.
What is ending inventory for a period?Understating the ending inventory for a period will cause an understatement of the net income for that period because the cost of goods sold (COGS) will be overstated. This is because COGS is calculated as beginning inventory plus purchases minus ending inventory. Therefore, an understated ending inventory will result in an overstated COGS and thus a lower net income.
Furthermore, the understatement of ending inventory for the current period will lead to an overstatement of the cost of goods sold for the next period. This is because the ending inventory for the current period becomes the beginning inventory for the next period. So if the ending inventory for the current period is understated, then the beginning inventory for the next period will be understated as well, causing an overstatement of COGS for the next period.
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In Munich a bratwurst costs 2 euros; a hot dog costs $2.00 at Boston's Fenway Park. At an exchange rate of $1.40/per euro, what is the price of a bratwurst in terms of hot dogs? The relative price of bratwurst is hot dogs (Enter your response rounded to two decimal places.) All else equal, how does this relative price change if the dollar appreciates to $1.30? Now the relative price of bratwurst is hot dogs (Enter your response rounded to two decimal places.) Compared with the initial situation, a hot dog has become expensive relative to a bratwurst. more less
Hi! To find the price of a bratwurst in terms of hot dogs, we need to first convert the cost of a bratwurst to dollars using the given exchange rate, and then compare it to the cost of a hot dog.
1. Initial exchange rate: $1.40/euro
Bratwurst cost: 2 euros * $1.40/euro = $2.80
Relative price of bratwurst to hot dog: $2.80 (bratwurst) / $2.00 (hot dog) = 1.40 hot dogs
2. Appreciated exchange rate: $1.30/euro
New bratwurst cost: 2 euros * $1.30/euro = $2.60
New relative price of bratwurst to hot dog: $2.60 (bratwurst) / $2.00 (hot dog) = 1.30 hot dogs
Compared to the initial situation, a hot dog has become less expensive relative to a bratwurst.
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Describe a decision your company has made when facing uncertainty. Compute the expected costs and benefits of the decision. Offer advice on how to proceed. Compute the profit consequences of the advice.
Comparing the anticipated or predicted costs and benefits (or opportunities) connected with a project choice to assess whether it makes sense from a business standpoint is known as a cost-benefit analysis. A hypothetical scenario to help explain the concept of expected costs and the decision-making process under uncertainty is given below:
Let us consider a hypothetical company called ABC Widgets, which is deciding whether to invest in a new production machine. They face uncertainty regarding the future demand for their widgets and the potential savings from the new machine.
Step 1: Compute the expected costs and benefits
ABC Widgets estimates that the new machine will cost $100,000. They have identified two possible scenarios for future demand: high demand with a 60% probability and low demand with a 40% probability. If the high-demand scenario occurs, the company will save $150,000 in production costs. In the low-demand scenario, they will only save $60,000 in production costs.
Expected cost savings in the high-demand scenario: 0.6 * $150,000 = $90,000
Expected cost savings in the low-demand scenario: 0.4 * $60,000 = $24,000
Step 2: Offer advice on how to proceed
To determine if the investment is worthwhile, we add the expected cost savings from both scenarios: $90,000 + $24,000 = $114,000. Since the expected benefits of $114,000 are greater than the machine's cost of $100,000, my advice would be to invest in the new production machine.
Step 3: Compute the profit consequences of the advice
If ABC Widgets follows the advice and invests in the new machine, it will incur an initial cost of $100,000. However, the expected cost savings are $114,000. Therefore, the profit consequence of this decision would be:
Expected profit = Expected cost savings - Initial cost
Expected profit = $114,000 - $100,000
Expected profit = $14,000
By investing in the new production machine, ABC Widgets can expect a profit increase of $14,000, considering the uncertainties in future demand.
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how would you characterize uber’s business model and strategy? what are the key elements of its customer value proposition? its profit formula? its approach to competing in the marketplace?
Uber's business model can be characterized as a platform-based, on-demand ride-sharing model. Its strategy focuses on providing a convenient, reliable, and affordable transportation alternative to traditional taxi services.
Key elements of Uber's customer value proposition include:
1. Convenience: Users can request a ride through a mobile app, which automatically detects their location and connects them with nearby drivers.
2. Transparency: Fares are calculated upfront, and users can track the driver's arrival and route during the trip.
3. Affordability: Uber offers various pricing tiers to cater to different budgets, often providing more competitive rates than traditional taxi services.
Uber's profit formula consists of:
1. Commission: Uber takes a percentage of each fare as a commission for providing the platform and facilitating transactions.
2. Surge pricing: During periods of high demand, Uber increases fares to balance supply and demand, which results in higher revenue.
In terms of marketplace competition, Uber's approach includes:
1. Continuous innovation: Uber constantly invests in new technology and services, such as autonomous vehicles and food delivery, to stay ahead of competitors.
2. Aggressive expansion: Uber enters new markets rapidly, aiming to establish a strong presence before competitors can gain traction.
3. Strategic partnerships: Uber partners with local businesses and governments to improve its service offerings and increase market penetration.
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Sustainable competitive advantage can only be maintained until competitors are able to duplicate or develop a compelling substitute. A. True B. False.
The given statement "Sustainable competitive advantage can only be maintained until competitors are able to duplicate or develop a compelling substitute" is True.
A sustainable competitive advantage is achieved when a company has a unique and valuable position in the market that is difficult for competitors to replicate.
However, competitors are always looking for ways to gain an advantage, which means that they may eventually be able to duplicate or develop a compelling substitute that undermines the company's competitive advantage.
The companies need to continually innovate and adapt to maintain their advantage in the market. It is essential to invest in research and development to stay ahead of the competition and keep up with the evolving market trends.
Ultimately, the ability to maintain a sustainable competitive advantage depends on a company's ability to adapt and stay ahead of its competitors.
Therefore the statement is True.
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true or false a public franchise gives the exclusive right to produce a product for 20 years from the date the product is invented.
The given statement is false. A public franchise is a government-issued license that grants the holder the exclusive right to provide a service or sell a particular product within a specific geographic area.
However, the duration of the franchise agreement can vary depending on the terms outlined in the agreement between the government and the franchise holder. Typically, franchise agreements last for a set period of time, which can range from a few years to several decades.
Therefore, it is not accurate to say that a public franchise gives the exclusive right to produce a product for 20 years from the date the product is invented.
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the scanlon plan is an example of ______, which distributes company savings to groups of employees who reduced costs and increased productivity.
The Scanlon Plan is an example of a gain-sharing program, which is designed to incentivize employees to increase productivity and reduce costs by sharing a portion of the company's savings with them.
Gain-sharing programs have become increasingly popular in recent years as they encourage employees to work together towards a common goal and create a sense of ownership and responsibility among the workforce. The Scanlon Plan, specifically, is a type of gain-sharing program that was developed in the 1930s by Joseph Scanlon, which focuses on involving employees in the decision-making process to improve efficiency and productivity. This approach has proven to be successful in many companies as it aligns the interests of employees with those of the company and can lead to increased profitability and growth.
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Suppose there are 5 people — 1, 2, 3, 4, 5 — who rank projects A, B, C and D as follows:1235AADсBDсBBссBсDDBDAAAa. Sketch the preferences of each person, with rank of preference on the y-axis and policies A to D left to right on the x-axis. Are every voter’s preferences single-peaked?b. Will any project be chosen by a majority vote rule? If so, explain which one. If not, explain why not.
not every voter’s preferences are single-peaked. Since no policy receives a majority of first-place votes (which would be 3 or more out of 5), there is no project that will be chosen by a majority vote rule.
a. To sketch the preferences of each person, we can create a chart with the y-axis representing rank of preference (1 being the most preferred and 4 being the least preferred) and the x-axis representing policies A to D.
Person 1: A > D
Person 2: B > D > C > A
Person 3: B > B > C > A > D
Person 4: C > B > B > B > A > D > A
Person 5: D > A > A > A > C > B > B
From this chart, we can see that not every voter’s preferences are single-peaked. Single-peaked preferences occur when voters’ preferences follow a bell-shaped curve, with their most preferred option in the middle and least preferred options at the two extremes. However, Person 3’s preferences for policies B and A are not single-peaked, as they prefer B over A, then A over C, and then back to A over D.
b. We can determine if any project will be chosen by a majority vote rule by adding up the number of first-place votes each project receives.
Policy A: 4 first-place votes
Policy B: 3 first-place votes
Policy C: 0 first-place votes
Policy D: 1 first-place vote
Since no policy receives a majority of first-place votes (which would be 3 or more out of 5), there is no project that will be chosen by a majority vote rule.
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Slick Oil and Gonzo Gas sell and buy crude oil, respectively. Gonzo Gas uses the crude oil to produce gasoline and wants to insure against input cost increases.
Suppose that on December 1, 2014 the price of crude oil is $62.30 per barrel. Slick Oil and Gonzo Gas enter into a contract on December 1, 2014. The contract specifies that Slick Oil will deliver one million barrels of crude oil to Gonzo Gas on February 27, 2015 for $65 per barrel.
The contract that Slick Oil and Gonzo Gas have entered into is called a [bond/futures contract/stock/call option/put option]
Suppose that on February 27, 2015, the market price of crude oil is $65.50. How does this impact Slick Oil's profits?
>Slick Oil suffers a loss of $65,000,000 from its contract with Gonzo Gas.
>Slick Oil suffers a loss of $1,000,000 from its contract with Gonzo Gas.
>Slick Oil suffers a loss of $500,000 from its contract with Gonzo Gas.
Slick Oil and Gonzo Gas have entered into a futures contract. Slick Oil suffers a loss of $500,000 from its contract with Gonzo Gas.
A futures contract is an agreement between two parties to buy or sell a specific quantity of a commodity at a predetermined price on a specific future date. In this case, Slick Oil agrees to deliver one million barrels of crude oil to Gonzo Gas at $65 per barrel on February 27, 2015.
On that date, the market price of crude oil is $65.50 per barrel. As Slick Oil agreed to sell at $65 per barrel, it suffers a loss of $0.50 per barrel ($65.50 - $65) compared to the market price.
To calculate the total loss, multiply the per-barrel loss by the total number of barrels in the contract: $0.50 x 1,000,000 barrels = $500,000.
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On January 31, 2015, Village Bank had 420,000 shares of $2 par value common stock outstanding. On that date, the company declared a 14% stock dividend when the market price of the stock was $37 per share. The immediate effect of this dividend upon Village Bank was:
a. A liability to the stockholders of $140,000.
b. A reduction in retained earnings of $140,000.
c. A reduction in cash of $2,590,000.
d. A reduction in retained earnings of $2,590,000.
The immediate effect of this dividend upon Village Bank was: A reduction in retained earnings of $140,000.The correct answer is b.
A stock dividend is when a company distributes additional shares of its own stock to its shareholders as a form of dividend. In this case, Village Bank declared a 14% stock dividend when the market price of the stock was $37 per share.
To calculate the number of additional shares to be distributed, we need to multiply the number of shares outstanding by the percentage of the dividend. So, 420,000 shares x 14% = 58,800 additional shares.
Since the par value of the common stock is $2, the total par value of the additional shares is 58,800 x $2 = $117,600.
However, since the market value of the stock is $37 per share, the total market value of the additional shares is 58,800 x $37 = $2,174,400.
Since Village Bank did not actually pay out any cash for this dividend, the reduction in retained earnings is equal to the market value of the additional shares, which is $2,174,400. However, since the par value of the additional shares is only $117,600, the remaining amount of $2,056,800 is recorded as a transfer from retained earnings to additional paid-in capital.
Therefore, the immediate effect of this dividend upon Village Bank was a reduction in retained earnings of $140,000 ($2,174,400 - $117,600).
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The Peach Pit, a restaurant, has Net Income of $25,000, Sales of $55,000, Assets of $115,000, and no debt. What is their ROE?
1) 21.7%
2)4.29%
3) 2.17%
4) 42.9%
The Return on Equity of The Peach Pit is 21.7%. The correct option is 1).
ROE, or Return on Equity, is a financial ratio that measures a company's profitability in relation to its shareholder equity. To calculate ROE, the company's net income is divided by its shareholder equity.
In this case, The Peach Pit's ROE can be calculated as follows:
ROE = Net Income / Shareholder Equity
ROE = Net Income / Assets (since there is no debt)
ROE = $25,000 / $115,000
ROE = 0.217 or 21.7%
Therefore, the correct answer is 1) 21.7%. This indicates that The Peach Pit generated a return of 21.7% on each dollar of shareholder equity. This is a positive sign as it shows the company is effectively utilizing its resources to generate profits for its shareholders.
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T-bills are financial instruments initially sold by ________ to raise funds.
A chartered banks
B the federal government
C state and local governments
D agencies of the federal government
E b and d
T-bills, or Treasury bills, are financial instruments initially sold by the federal government to raise funds.
The correct answer is option B: the federal government. T-bills are short-term debt securities issued by the U.S. Department of the Treasury to finance the federal government's borrowing needs. They are considered to be one of the safest investments because they are backed by the U.S. government's creditworthiness. T-bills are typically sold at a discount to their face value and do not pay periodic interest like other types of bonds. Instead, investors earn a return by buying T-bills at a discount and receiving the full face value when the T-bills mature. T-bills are widely used by investors and institutions as a low-risk investment and a tool for short-term cash management.
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roy petrie is a flower wholesaler. he buys fresh flowers from countries in south america, divides the large batches into small bunches, and delivers them to independent florists. this process is called:
Roy Petrie is a flower wholesaler. he buys sparkling flowers from nations in south the us, divides the big batches into small bunches, and can provide them to unbiased florists. this process is called breaking bulk.
Breaking bulk refers to the process of unpacking, sorting, and redistributing goods that have been transported in bulk quantities, typically by ship or rail, to individual customers or smaller retail outlets. This process is an important aspect of logistics and supply chain management, as it allows for the efficient distribution of goods across multiple locations and markets.
Breaking bulk often involves the use of warehouses or distribution centers, where goods are stored and sorted based on destination and customer demand. For example, a container ship carrying thousands of boxes of a particular product may be unloaded at a port and transported to a nearby warehouse, where the boxes are unpacked, sorted, and distributed to various retailers or customers in smaller quantities.
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an airline has a marginal cost per passenger of $30 on a route from cleveland to phoenix. at the same time, the typical fare charged is $400. the planes that fly the route are usually full, yet the airline claims it loses money on the route. this loss may occur because choose one: a. economic profits are less than accounting profits. b. fixed costs are so high that they are not being covered. c. variable costs increase greatly with each additional passenger. d. total costs are higher than the sum of fixed costs and variable costs.
Even though the airline claims to lose money on the route, the planes that fly it are generally packed. This loss might arise when fixed costs are insufficiently covered. Here option B is the correct answer.
The airline's situation described in the question is an example of a common phenomenon in the airline industry: despite seemingly high ticket prices and full planes, airlines may still lose money on certain routes. In this case, the airline has a marginal cost per passenger of $30 but charges a fare of $400.
However, the airline claims that it is losing money on the route. This can occur for several reasons, but the most likely explanation is that fixed costs are so high that they are not being covered. Fixed costs are expenses that do not change with the level of production or sales.
Examples of fixed costs for an airline might include expenses for aircraft acquisition and maintenance, airport fees, and salaries for administrative and ground staff. In contrast, variable costs are expenses that increase as production or sales increase, such as the cost of fuel, food and beverages, and other materials needed for the flight.
In this scenario, the airline's marginal cost per passenger is relatively low compared to the ticket price, but the fixed costs associated with the route are so high that the airline is unable to cover them with ticket revenue. As a result, the airline is operating at a loss on this route.
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costs that repeat as project work continues such as the cost of writing code or laying bricks are appropriately classified as:
Costs that repeat as project work continues, such as the cost of writing code or laying bricks, are appropriately classified as direct costs.
Direct costs are costs that can be directly attributed to a specific product or service, or in this case, a project. These costs are typically variable and are incurred in direct proportion to the amount of work that is done on the project. Examples of direct costs include the cost of materials, labor, and equipment used in the project.
In the case of costs that repeat as project work continues, such as the cost of writing code or laying bricks, these costs can be directly attributed to the project and are incurred in direct proportion to the amount of work that is done on the project. As a result, they are appropriately classified as direct costs.
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true or false: the tax cuts and jobs act of 2017 eliminates the tax issue about repatriating overseas profits. true false question. true false
The given statement the tax cuts and jobs act of 2017 eliminates the tax issue about repatriating overseas profits is FALSE
Under the previous tax system, U.S. companies were subject to U.S. taxes on their worldwide income, but they could defer paying U.S. taxes on their foreign income until they repatriated that income back to the U.S.
This created an incentive for companies to keep their foreign profits offshore, rather than bringing them back to the U.S. and paying the higher U.S. tax rate. The Tax Cuts and Jobs Act of 2017 introduced a one-time tax on accumulated foreign earnings and eliminated the deferral system for foreign profits going forward, among other changes.
However, the issue of repatriating overseas profits remains a complex tax issue for multinational corporations.
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Which of the following statements is most correct?A) A sample of all items of a population will eliminate sampling risk, but increase nonsampling risk.B) The use of an appropriate sample selection technique ensures a representative sample.C) The auditor's failure to recognize an exception is a significant cause of sampling risk.D) The use of inappropriate audit procedures is a significant cause of nonsampling risk.LO 15-1
The most correct statement among the given options is D) The use of inappropriate audit procedures is a significant cause of nonsampling risk. Nonsampling risk includes all other risks that are not related to sample selection or size, and inappropriate audit procedures.
A) A sample of all items in a population will eliminate sampling risk since there will be no sample to infer conclusions about the population. However, it will not necessarily increase nonsampling risk, as nonsampling risk is associated with factors other than sample size and selection.
B) While the use of an appropriate sample selection technique can improve the representativeness of a sample, it does not guarantee a representative sample. Other factors, such as the inherent variability of the population, can also impact the representativeness of a sample.
C) The auditor's failure to recognize an exception, although it can cause errors in the audit, is not a significant cause of sampling risk. Sampling risk arises due to the fact that a sample may not accurately represent the entire population, whereas the failure to recognize an exception is a form of nonsampling risk.
D) The use of inappropriate audit procedures is a significant cause of nonsampling risk. Nonsampling risk includes all other risks that are not related to sample selection or size, and inappropriate audit procedures can lead to errors or misstatements in the audit.
These errors may occur due to factors such as the auditor's lack of competence, inadequate supervision, or the use of incorrect or insufficient procedures to gather and evaluate audit evidence.
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when the stock price increases with all else remaining the same, which of the following is true? group of answer choices both calls and puts increase in value. both calls and puts decrease in value. calls increase in value while puts decrease in value. h. puts increase in value while calls decrease in value.
Both calls and puts grow in value when the stock price rises while everything else stays the same. Option 1 is Correct.
When the market price is more than the exercise price, the call option is in the money. As a result, the holder may buy the security at the lower exercise price and record the difference in price between it and the market price as profit.
Puts gain in value while calls lose it when volatility falls while everything else stays the same. a rise in the risk's underlying source's volatility. As a result, the value of a call option grows as stock price does. how much the stock price is over the strike price. As a result, the value of a call option decreases as the strike price rises. American put and call options both gain in value. Option 1 is Correct.
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Correct Question:
when the stock price increases with all else remaining the same, which of the following is true? group of answer choices
1. both calls and puts increase in value.
2. both calls and puts decrease in value.
3. calls increase in value while puts decrease in value.
4. h. puts increase in value while calls decrease in value.