The accounts receivable turnover is computed by dividing option (B). net credit sales by average net accounts receivable.
The accounts receivable turnover ratio is a financial metric used to assess the efficiency of a company's credit and collection processes. It measures how quickly a company collects payments from its customers. The formula to calculate the accounts receivable turnover is by dividing net credit sales by the average net accounts receivable.
Net credit sales represent the total sales made on credit during a specific period, excluding cash sales. It reflects the amount of credit extended to customers. Average net accounts receivable, on the other hand, is calculated by taking the average of the beginning and ending net accounts receivable balances over a period.
By dividing net credit sales by average net accounts receivable, the accounts receivable turnover ratio indicates the number of times, on average, that a company collects its outstanding receivables within a given period.
A higher turnover ratio generally indicates that a company is efficient in collecting payments from customers, while a lower ratio suggests potential issues with credit and collection management. This ratio is valuable for assessing the effectiveness of a company's credit policies and evaluating the liquidity of its accounts receivable.
Learn more about Receivable turnover from the given link:
https://brainly.com/question/30763367
#SPJ11
The accounts receivable turnover is computed by dividing the net credit sales by the average net accounts receivable.
To calculate the accounts receivable turnover, you need two pieces of information: net credit sales and average net accounts receivable.
Net credit sales refer to the sales made on credit, excluding any cash sales. It represents the revenue generated from credit transactions.
Average net accounts receivable is the average amount of money owed to a company by its customers over a specific period. It is calculated by adding the beginning and ending balances of accounts receivable and dividing the sum by two.
Dividing the net credit sales by the average net accounts receivable gives you the accounts receivable turnover ratio. This ratio measures how efficiently a company collects its receivables during a given period. A higher ratio indicates better receivables management.
For example, if a company had net credit sales of $100,000 and an average net accounts receivable of $50,000, the accounts receivable turnover would be 2 ($100,000 / $50,000). This means that, on average, the company collects its receivables twice a year.
Therefore, the correct answer is B. Net credit sales by average net accounts receivable.
Learn more about credit transactions from the given link:
https://brainly.com/question/30109459
#SPJ11
Receiving cash from a customer paying off an accounts receivable from services previously performed would: a. Increase stockholders' equity and increase total assets b. Decrease total assets and increase liabilities c. Increase liabilities and increase total assets d. Not change the net balances of total assets, liabilities, or stockholders' equity
Receiving cash from a customer paying off an accounts receivable from services previously performed would option A) increase total assets and decrease the accounts receivable account balance.
The correct option is letter A, "Increase stockholders' equity and increase total assets." An increase in the cash account balance is a result of receiving cash from a customer that pays an accounts receivable from services previously provided.
Also, an increase in cash is an increase in total assets. The transaction will not affect the liabilities account, and thus it will not increase or decrease it. The accounts receivable account is decreased, which implies that the amount the company owed the company was paid, thereby reducing the company's equity.
Finally, if accounts receivable were reduced, the transaction would also increase equity because revenues were previously recognized, but they were not collected until this point.
To know more about receivable visit :
brainly.com/question/32156363
#SPJ11
If computers are like most goods and the price of computers chips rise, then holding all else constant, the Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a the price and quantity of computers will decrease the price and quantity of computers will increase с the price of computers will increases and quantity of computers will decrease d the price of computers will decrease and quantity of computers will increase Consider the market for Teslas. The price of gasoline increases and the cost of producing Tesla batteries rise. How will the market for Teslas respond? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to smiect an answer. a prices will rise and the equilibrium quantity may or may not change. b prices will rise and the equilibrium quantity will increase. C prices will rise and the equilibrium quantity will decrease. d There is not enough information to answer the question
The market for Teslas will experience a rise in prices and a potential change in the equilibrium quantity.
When the price of gasoline increases and the cost of producing Tesla batteries rises, two factors come into play that affect the market for Teslas.
Firstly, the increase in gasoline prices makes traditional fuel-powered vehicles less attractive, leading to a higher demand for electric vehicles like Teslas. This increased demand puts upward pressure on prices.
Secondly, the rise in the cost of producing Tesla batteries directly impacts the production costs for Teslas. As the cost of batteries increases, it becomes more expensive to manufacture electric vehicles, including Teslas. This increase in production costs can lead to a decrease in the supply of Teslas.
Considering these two factors, we can conclude that the market for Teslas will respond by experiencing a rise in prices. However, the effect on the equilibrium quantity is less clear and may depend on the extent to which the increase in demand outweighs the increase in production costs. It is possible that the equilibrium quantity of Teslas may increase if the rise in demand due to higher gasoline prices is substantial enough to offset the increase in production costs. However, it is also possible that the equilibrium quantity may decrease if the production cost increase has a more significant impact on supply compared to the increase in demand.
Learn more about the equilibrium quantity
brainly.com/question/13501330
#SPJ11
A company has two divisions; the Ant Division and the Bee Division. The Ant division supplies the Bee division with the component it requires to complete its product; The Hive. Bee division sell the Hive for £50 each. There is an external market for the component produced by the Ant division but the Ant division does not sell into this market currently. Both divisions are working at maximum capacity. Budgeted data for the year is: Ant Division Bee Division Units produced and sold 5,000 5,000 Marginal cost per unit £5 £20 Annual fixed costs £30,000 £50,000 The marginal cost per unit incurred by Bee Division excludes the cost of the component transferred from Ant Division. Ant division have been approached to sell 1,000 of their components externally at £10 each. However as there is no spare capacity and Bee division require the full 5,000 units, Ant division must forego this opportunity and continue to provide Bee with 5,000 units.
Recalculate the profit for each division and in total taking into consideration the effect that the lost opportunity for external sales would have on the transfer price.
The decision of the Ant Division to forego the external sales opportunity due to full capacity utilization and the requirement of the Bee Division affects the profitability of both divisions.
Ant Division:
Units produced and sold: 5,000
Marginal cost per unit: £5
Annual fixed costs: £30,000
Total cost incurred by Ant Division: (5,000 units × £5 per unit) + £30,000 = £55,000
Revenue from internal transfer to Bee Division: 5,000 units × £5 per unit = £25,000
Total profit for Ant Division: Revenue - Total cost = £25,000 - £55,000 = (£30,000)
Bee Division:
Units produced and sold: 5,000
Marginal cost per unit: £20
Annual fixed costs: £50,000
Total cost incurred by Bee Division: (5,000 units × £20 per unit) + £50,000 = £150,000
Revenue from selling Hives: 5,000 units × £50 per unit = £250,000
Total profit for Bee Division: Revenue - Total cost = £250,000 - £150,000 = £100,000
Total profit for both divisions: (£30,000) + £100,000 = £70,000
In this scenario, the Ant Division has the opportunity to sell 1,000 components externally at £10 each. However, due to the full capacity utilization and the requirement of the Bee Division for all 5,000 units, the Ant Division cannot pursue the external sales opportunity.
To recalculate the profit, we need to consider the effect of the lost opportunity on the transfer price. The original transfer price was £5 per unit, but if the Ant Division had sold externally, they could have obtained £10 per unit. Therefore, the lost opportunity cost is the difference between the internal transfer price (£5) and the potential external selling price (£10) per unit.
Lost opportunity cost per unit = Potential external selling price - Internal transfer price = £10 - £5 = £5
Since the Ant Division foregoes selling 1,000 units externally, the total lost opportunity cost is: 1,000 units × £5 per unit = £5,000.
By considering the lost opportunity cost, the recalculated profit for each division and in total is as mentioned above.
The decision of the Ant Division to forego the external sales opportunity due to full capacity utilization and the requirement of the Bee Division affects the profitability of both divisions. The Ant Division incurs a loss in this scenario, while the Bee Division maintains its profit. The total profit for both divisions is reduced due to the lost opportunity for external sales.
To know more about utilization, visit:
https://brainly.com/question/5746834
#SPJ11
Define Six Sigma and explain its purpose
Six Sigma is a disciplined methodology that is used to increase the productivity of an organization by removing defects and minimizing variability in business processes. It aims to enhance the overall quality of the product or service offered by the organization.
The purpose of Six Sigma is to help an organization to achieve continuous improvement in its business processes. It is a data-driven methodology that uses statistical analysis to identify the root causes of defects and variability in business processes. The methodology aims to eliminate these defects by systematically removing the causes of variation in the process. It helps an organization to identify the sources of waste and inefficiency in its processes, thereby improving the efficiency and effectiveness of its operations.
The answer is that Six Sigma is a disciplined methodology that is used to increase the productivity of an organization by removing defects and minimizing variability in business processes. Its purpose is to help an organization to achieve continuous improvement in its business processes by eliminating defects, reducing variation, and improving efficiency and effectiveness.
to know more about Six Sigma visit:
brainly.com/question/30592021
#SPJ11
Dividend given to the preferred stock holders are fixed and they have the right to vote as part owners. True
False
The statement is false. Preferred stockholders do not have the right to vote as part owners, and the dividends given to preferred stockholders are typically fixed.
Preferred stockholders are generally entitled to receive a fixed dividend, which is predetermined and paid out before any dividends are distributed to common stockholders. This fixed dividend gives preferred stock its name, as it provides a priority over common stock dividends. However, preferred stockholders usually do not have voting rights in the company. The voting rights are typically reserved for common stockholders, who have a greater say in the decision-making processes of the company, such as electing the board of directors and voting on significant corporate matters.
The distinction between preferred stock and common stock lies in the ownership rights and the nature of dividends. Preferred stockholders have a higher claim on the company's assets and earnings in the event of liquidation but generally lack the voting power enjoyed by common stockholders. This structure allows companies to raise capital while providing different benefits and risks to different types of shareholders.
Learn more about stock dividends
brainly.com/question/32267337
#SPJ11
Draw a supply-demand graph to explain what has happened to the oil market since Russia invaded Ukraine in February.
The oil market was not largely affected by the February 2014 Russia-Ukraine conflict. The crude oil prices in the global market were more influenced by the increasing production of shale oil in the United States than by the tensions in Ukraine.
Since the USA is the largest producer of crude oil, its increased production lowered the prices of crude oil in the global market.
Demand and supply in the oil market are the two most critical factors that determine the prices of crude oil. When the supply of crude oil exceeds its demand, the prices tend to decrease. Similarly, when the demand for crude oil exceeds the supply, prices tend to increase. In recent years, the supply of crude oil has exceeded demand, leading to a decrease in oil prices.
This is evident in the supply-demand graph. The decrease in oil prices resulted in a severe impact on the economies of oil-exporting nations, as their revenues were substantially reduced.
To know more about global market visit:-
https://brainly.com/question/26958871
#SPJ11
COMPANY TAXATION For the 2020/21 tax year, Jepson Ltd, a resident large public company, has the following profit/loss in relation to its income and expenses: Income: $ $ Rental income received from tenants 160 m Fully Franked distributions: resident public companies 15 m Unfranked distributions: resident public companies 10 m 185 m Less expenses: Interest on borrowings to purchase shares in public companies 85 m 85 m Net income (NB m = million) REQUIRED $100 m Interest on borrowings to purchase shares in public companies 85 m 85 m Net income $100 m (NB m = million) REQUIRED In your responses below, ensure you state the appropriate legislation, tax rulings or common law cases to support your answer and calculations. Further, for Part 1 only, very briefly state the reasons as to why the law applies to the facts. Part 1 Determine the taxable income for Jepson Ltd for the 2020/21 tax year.
The taxable income for Jepson Ltd for the 2020/21 tax year is $100 million.
To determine the taxable income, we start with the company's total income and deduct allowable expenses. In this case, Jepson Ltd's total income consists of rental income received from tenants ($160 million), fully franked distributions from resident public companies ($15 million), and unfranked distributions from resident public companies ($10 million), totaling $185 million.
However, the company is entitled to deduct expenses, specifically the interest on borrowings ($85 million) that were used to purchase shares in public companies. This expense is deductible under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) as it is incurred in gaining or producing assessable income.
Therefore, the taxable income is calculated as follows:
Total Income ($185 million) - Deductible Expenses ($85 million) = Taxable Income ($100 million).
Based on the given information and relevant legislation (specifically section 8-1 of ITAA 1997), the taxable income for Jepson Ltd for the 2020/21 tax year is $100 million.
To know more about taxable income ,visit:
https://brainly.com/question/30617249
#SPJ11
Peacocks and milky stork are among the species of birds that are on the verge of extinction. As an effort to address this issue, a herd of peacocks and a herd of milky stork have been released at a national forest with a number of 2,500, respectively, for the largest population that the environment can sustain for each type of bird is 10,000. Suppose that the peacocks grow at a rate of 3.2 per generation and the milky storks grow at a rate of 3.9 per generation. i. Construct and describe the mathematical model that fit the given problem (you shall explain all the variables involved in the model). [2 marks] ii. Investigate and explain the stability and oscillation occurrence for both populations by looking at the derivatives of the models.
i. Mathematical Model
Let P(t) and S(t) be the populations of peacocks and milky storks at time t, respectively. Then, we can model the growth of the two populations using the following differential equations:
dP/dt = r1P(1 - P/K1)
dS/dt = r2S(1 - S/K2)
where r1 and r2 are the growth rates of the peacock and milky stork populations, respectively, K1 and K2 are the carrying capacities of the environment for each population.
The first equation represents the logistic growth of peacocks, where dP/dt is the rate of change in the population over time, r1 is the maximum growth rate when the population size is small, P is the current population size, and K1 is the carrying capacity of the environment for peacocks. The term (1 - P/K1) represents the effect of limiting factors due to the environment, which slows down the growth rate as the population approaches the carrying capacity.
Similarly, the second equation represents the logistic growth of milky storks, where dS/dt is the rate of change in the population over time, r2 is the maximum growth rate when the population size is small, S is the current population size, and K2 is the carrying capacity of the environment for milky storks. The term (1 - S/K2) represents the effect of limiting factors due to the environment, which slows down the growth rate as the population approaches the carrying capacity.
ii. Stability and Oscillation Occurrence
To investigate the stability and oscillation occurrence for the two populations, we can look at the derivatives of the models:
d^2P/dt^2 = r1*(1 - 2P/K1)dP/dt
d^2S/dt^2 = r2(1 - 2S/K2)*dS/dt
The signs of these second derivatives determine the stability and oscillation behavior of the populations.
For the peacock population, if d^2P/dt^2 < 0 when P is close to K1, then the population will be stable and converge to the carrying capacity. If d^2P/dt^2 > 0 when P is close to K1, then the population will be unstable and exhibit oscillations.
For the milky stork population, if d^2S/dt^2 < 0 when S is close to K2, then the population will be stable and converge to the carrying capacity. If d^2S/dt^2 > 0 when S is close to K2, then the population will be unstable and exhibit oscillations.
In both cases, the sign of the second derivative depends on the ratio of the current population size to the carrying capacity. When the population is small compared to the carrying capacity, the growth rate dominates and the population grows exponentially. As the population approaches the carrying capacity, the effect of limiting factors becomes more significant and slows down the growth rate, causing the second derivative to change sign. If the population overshoots the carrying capacity, the limiting factors become too strong and cause the population to decline, leading to another change in sign of the second derivative. This cycle of growth and decline can lead to oscillations in the population size.
Learn more about populations here:
https://brainly.com/question/27779235
#SPJ11
Government survey takers determine that typical family expenditures each month in the year designated as the base year are as follows:
• 25 pizzas, $10 each
• Apartment rent, $600 per month
• Gasoline and car maintenance, $100 per month
• Phone service (basic service plus 10 long-distance calls), $50 per month
In the year following the base year, the survey takers determine that pizzas have risen to $11 each, apartment rent is $610, gasoline and maintenance costs are $115, and phone service has dropped in price to $40.
Instructions: Enter your responses by rounding the CPI to three decimal places and the rate of inflation to one decimal place.
a. Find the CPI in the subsequent year and the rate of inflation between the base year and the subsequent year.
CPI: .
Rate of inflation: %.
b. The family’s nominal income rose by 5 percent between the base year and the subsequent year. Are they worse off or better off in terms of what their income is able to buy?
The family is (Click to select)still in the same positionbetter offworse off.
The CPI helps us understand the change in prices over time, and comparing it with changes in income allows us to determine if people are better off or worse off in terms of their purchasing power.
a. To find the CPI (Consumer Price Index) in the subsequent year and the rate of inflation between the base year and the subsequent year, we need to compare the prices of the goods and services in both years.
In the base year:
- Pizza price: 10 each
- Apartment rent: 600 per month
- Gasoline and car maintenance: 100 per month
- Phone service: 50 per month
In the subsequent year:
- Pizza price: 11 each
- Apartment rent: 610 per month
- Gasoline and car maintenance: 115 per month
- Phone service: 40 per month
To calculate the CPI, we need to sum the expenditures in the subsequent year and divide by the sum of expenditures in the base year, then multiply by 100.
[tex]CPI = (25 pizzas x $11 each + $610 rent + $115 gasoline + $40 phone service) / (25 pizzas x $10 each + $600 rent + $100 gasoline + $50 phone service) x 100[/tex]
[tex]CPI = (275 + 610 + 115 + 40) / (250 + 600 + 100 + 50) x 100[/tex]
CPI = 104%
To calculate the rate of inflation, we subtract 100 from the CPI and divide by 100.
Rate of inflation = (104 - 100) / 100 = 4%
b. The family's nominal income rose by 5 percent between the base year and the subsequent year. To determine if they are better off or worse off in terms of what their income can buy, we need to compare the rate of inflation with the increase in their income.
In this case, the rate of inflation is 4% and the increase in income is 5%.
Since the rate of inflation is lower than the increase in income, the family is better off in terms of what their income can buy. Their income has increased more than the cost of goods and services, allowing them to afford more with their higher income.Therefore, the family is better off.
To know more about expenditures visit:
https://brainly.com/question/32579410
#SPJ11
Associates, Inc. uses the weighted-average method in its process costing system. The following data relates to the process operations of the company for a recent month:
Beginning Work in Process Inventory:
Units in Process.................................................500
% complete with respect to direct materials.....80%
% complete with respect to conversion costs...70%
Ending Work in Process Inventory:
Units in Process.................................................500
% complete with respect to direct materials.....80%
% complete with respect to conversion costs...20%
Units started into production during the current month: 12,000
Units completed and transferred to finished goods: 12,000
Costs in the beginning Work in Process Inventory:
Direct materials costs $ 1,340
Conversion costs $ 8,475
Costs added to production during the current month:
Direct materials costs $ 65,000
Conversion costs $412,000
Total costs (beginning WIP Inv. plus current month) $486,815
Required:
1. Compute equivalent units of production for (a) direct materials and (b) conversion costs.
2. Compute cost per equivalent unit for (a) direct materials and (b) conversion costs.
3. Compute the total cost to be assigned to the units that were completed and transferred to finished goods.
4. Compute the total cost to be assigned to the incomplete units in the ending Work in Process Inventory.
(This problem is worth a total of 20 points.)
Answer text
1. Compute equivalent units of production for (a) direct materials and (b) conversion costs:
(a) Equivalent Units of Production for Direct Materials:
Beginning WIP Inventory: 500 units x 80% = 400 units
Current Month Production: 12,000 units x 100% = 12,000 units
Total Equivalent Units of Production for Direct Materials: 400 units + 12,000 units = 12,400 units
(b) Equivalent Units of Production for Conversion Costs:
Beginning WIP Inventory: 500 units x 70% = 350 units
Current Month Production: 12,000 units x 100% = 12,000 units
Ending WIP Inventory: 500 units x 20% = 100 units
Total Equivalent Units of Production for Conversion Costs: 350 units + 12,000 units + 100 units = 12,450 units
2. Compute cost per equivalent unit for (a) direct materials and (b) conversion costs:
(a) Cost per Equivalent Unit for Direct Materials:
Costs in Beginning WIP Inventory: $1,340
Costs Added during the Current Month: $65,000
Total Costs: $1,340 + $65,000 = $66,340
Cost per Equivalent Unit for Direct Materials: $66,340 / 12,400 units = $5.34 per unit
(b) Cost per Equivalent Unit for Conversion Costs:
Costs in Beginning WIP Inventory: $8,475
Costs Added during the Current Month: $412,000
Total Costs: $8,475 + $412,000 = $420,475
Cost per Equivalent Unit for Conversion Costs: $420,475 / 12,450 units = $33.75 per unit
3. Compute the total cost to be assigned to the units that were completed and transferred to finished goods:
Units Completed and Transferred: 12,000 units
Cost per Equivalent Unit for Direct Materials: $5.34 per unit
Cost per Equivalent Unit for Conversion Costs: $33.75 per unit
Total Cost Assigned: 12,000 units x ($5.34 + $33.75) = $467,280
4. Compute the total cost to be assigned to the incomplete units in the ending Work in Process Inventory:
Units in Ending WIP Inventory: 500 units
Cost per Equivalent Unit for Direct Materials: $5.34 per unit
Cost per Equivalent Unit for Conversion Costs: $33.75 per unit
Total Cost Assigned: 500 units x ($5.34 + $33.75) = $19,045
Therefore:
3. The total cost to be assigned to the units that were completed and transferred to finished goods is $467,280.
4. The total cost to be assigned to the incomplete units in the ending Work in Process Inventory is $19,045.
learn more about costs here:
brainly.com/question/30045916
#SPJ11
Answer each of the following unrelated questions. Show your computation.
1) Bill wants to give Maria a $500,000 gift in seven years. If money is worth 6% compounded
semiannually, what is Maria's gift worth today?
2) At the end of each quarter, Patti deposits $500 into an account that pays 12% interest
compounded quarterly. How much will Patti have in the account in three years?
3) Spielberg Inc. signed a $200,000 noninterest-bearing note due in five years from a production
company eager to do business. Comparable borrowings have carried an 11% interest rate. What
is the value of this debt at its inception?
4) Claudine Corporation will deposit $5,000 into a money market sinking fund at the end of each
year for the next five years. How much will accumulate by the end of the fifth and final payment
if the sinking fund earns 9% interest?
5) Polo Publishers purchased a multi-color offset press with terms of $50,000 to be paid at the
date of purchase, and a noninterest-bearing note requiring payment of $20,000 at the end of each
year for five years. The interest rate implicit in the purchase contract is 11%. Polo would record
the asset at:
6) Marco needs $175,000 six years from today. How much should Marco deposit today into an in
vestment account that provides a 12% annual return in order to accomplish his goals?
7) Shelley wants to cash in her winning lottery ticket. She can either receive ten $100,000
semiannual payments starting today, or she can receive a lump-sum payment now based on a 6%
annual interest rate. What is the equivalent lump-sum payment?
8) Margaret will receive an insurance settlement of $3,000,000 in five years. Randall is willing to
give her a lump sum today in return for the payment in five years. If current interest rate is 12%
per year, how much will Margaret receive today?
9) On April 1, 2020, Meyers Company purchased a bulldozer. Payment, totaling $70,000, is not
due until April 1, 2022. Assuming interest at a 12% annual rate, how much Meyers should debit
Machinery on April 1, 2020?
10) How much must be deposited at the beginning of each year to accumulate to $10,000 in
four years if interest is at 9%?
Margaret will receive approximately $1,703,549.02 today as a lump sum in return for the $3,000,000 insurance settlement she would receive in five years.
Determining the rest of the solution, step by step1. To find the present value, we use the formula for compound interest:
Present Value =[tex]Future Value / (1 + (r/n))^(^n^*^t^)[/tex]
Present Value =[tex]$500,000 / (1 + (0.06/2))^(^2^*^7^)[/tex]
[tex]Present Value = $500,000 / (1.03)^(^1^4^)[/tex]
Present Value = $500,000 ÷ 1.4840310889
Present Value = $336,846.83 (rounded to the nearest cent)
Therefore, Maria's gift is worth approximately $336,846.83 today.
2. To calculate the future value of the account, we can use the formula for compound interest:
[tex]Future Value = P * (1 + r/n)^n^*^t[/tex]
[tex]Future Value = $500 * (1 + (0.12/4))^4^*^3[/tex]
Future Value = $500 * (1.03)¹²
Future Value = $500 * 1.4257617862
Future Value = $712.88 (rounded to the nearest cent)
Therefore, Patti will have approximately $712.88 in the account after three years.
3. The value of the debt at its inception is the present value of the future payment. Since the note is noninterest-bearing, we can calculate the present value using the formula:
[tex]Present Value = Future Value / (1 + r)^t[/tex]
[tex]Present Value = $200,000 / (1 + 0.11)^5[/tex]
Present Value = $200,000 / 1.6850825293
Present Value = $118,749.77 (rounded to the nearest cent)
Therefore, the value of the debt at its inception is approximately $118,749.77.
4. To calculate the future value of the sinking fund, we can use the formula for compound interest:
[tex]Future Value = P * ((1 + r)^t - 1) / r[/tex]
Future Value = $5,000 * ((1 + 0.09)^5 - 1) / 0.09
Future Value = $5,000 * (1.4888584449 - 1) / 0.09
Future Value = $5,000 * 0.4888584449 / 0.09
Future Value = $27,193.11 (rounded to the nearest cent)
Therefore, by the end of the fifth and final payment, approximately $27,193.11 will accumulate in the sinking fund.
5. The purchase price of the offset press can be determined by finding the present value of the noninterest-bearing note payments. We can use the formula:
[tex]Present Value = Payment / (1 + r)^t[/tex]
[tex]Present Value = $20,000 / (1 + 0.11)^5[/tex]
Present Value = $20,000 / 1.747422051
Present Value = $11,438.53 (rounded to the nearest cent)
Therefore, Polo Publishers would record the asset at $11,438.53, which is the present value of the noninterest-bearing note payments.
6. To calculate the amount Marco should deposit today, we can use the formula for present value:
[tex]Present Value =[/tex] [tex]Future Value / (1 + r)^t[/tex]
Present Value = [tex]$175,000 / (1 + 0.12)^6[/tex]
Present Value = $175,000 / 1.9487171369
Present Value = $89,937.24 (rounded to the nearest cent)
Therefore, Marco should deposit approximately $89,937.24 today to accumulate $175,000 in six years with a 12% annual return.
7. To find the equivalent lump-sum payment, we can use the formula for present value:
[tex]Present Value = $100,000 / (1 + (0.06/2))^2^*^1^0[/tex]
[tex]Present Value = $100,000 / (1.03)^2^0[/tex]
Present Value = $100,000 / 1.8061115192
Present Value = $55,307.13 (rounded to the nearest cent)
Therefore, the equivalent lump-sum payment based on a 6% annual interest rate is approximately $55,307.13.
8. To calculate the present value of the insurance settlement, we can use the formula:
[tex]Present Value = Future Value / (1 + r)^t[/tex]
[tex]Present Value = $3,000,000 / (1 + 0.12)^5[/tex]
Present Value = $3,000,000 / 1.7623413252
Present Value = $1,703,549.02 (rounded to the nearest cent)
Therefore, Margaret will receive approximately $1,703,549.02 today as a lump sum in return for the $3,000,000 insurance settlement she would receive in five years.
9. To calculate the debit to the Machinery account on April 1, 2020, we need to determine the present value of the payment due on April 1, 2022.
[tex]Present Value = Future Value / (1 + r)^t[/tex]
[tex]Present Value = $70,000 / (1 + 0.12)^2[/tex]
[tex]Present Value = $70,000 / 1.2544[/tex]
Present Value = $55,790.96 (rounded to the nearest cent)
Therefore, Meyers Company should debit the Machinery account for approximately $55,790.96 on April 1, 2020.
10. To calculate the amount that must be deposited at the beginning of each year, we can use the formula for future value of an ordinary annuity:
[tex]Future Value = P * ((1 + r)^t - 1) / r[/tex]
[tex]$10,000 = P * ((1 + 0.09)^4 - 1) / 0.09[/tex]
Solving for P:
[tex]P = $10,000 * 0.09 / ((1.09)^4 - 1)[/tex]
[tex]P = $10,000 * 0.09 / (1.411581 - 1)[/tex]
[tex]P = $10,000 * 0.09 / 0.411581[/tex]
P = $2,463.41 (rounded to the nearest cent)
Therefore, approximately $2,463.41 must be deposited at the beginning of each year to accumulate to $10,000 in four years with a 9% interest rate.
Learn more on compound interest here https://brainly.com/question/24274034
#SPJ4
If the price of the zero-coupon bond is B₁ t ≥ 0, show that Bt = Se-r(T-t), for t = [0, T} 0, for t > T, where r is the riskless rate of a riskless bank account.
It is proved that the price of the zero-coupon bond at time t, denoted as Bt, is equal to [tex]Se^{(-r(T-t))[/tex] for t in the interval [0, T]
and 0 for t > T, where r is the riskless rate of a riskless bank account.
To demonstrate that the price of a zero-coupon bond at time t, denoted as Bt, is equal to [tex]Se^{(-r(T-t))[/tex] for t in the interval [0, T] and 0 for t > T,
we can utilize the concept of present value.
The price of a zero-coupon bond represents the present value of its future cash flow, which is the face value (S) received at maturity (T).
The present value is calculated by discounting the future cash flow using the riskless rate (r) as the discount rate.
For t in the interval [0, T], we can express Bt as follows,
Bt = [tex]Se^{(-r(T-t))[/tex]
Here's the derivation,
Start with the general formula for present value,
PV = FV / (1 + r)ⁿ
where PV is the present value, FV is the future value (face value), r is the discount rate, and n is the number of periods.
Here, the future value (FV) is the face value (S) of the zero-coupon bond received at maturity (T).
Therefore, FV = S.
The present value (PV) of the future cash flow occurring at time T is Bt, which represents the price of the zero-coupon bond at time t.
PV = Bt
The number of periods (n) in this case is T - t, as the future cash flow occurs at time T and we are discounting it back to time t.
n = T - t
Substitute the values into the present value formula,
Bt = [tex]S / (1 + r)^{(T - t)[/tex]
Rearrange the formula to simplify the expression,
Bt = [tex]S × (1 + r)^{(-T + t)[/tex]
Bt = S × [tex]e^{(-r(T - t))[/tex] [Using the property (1 + r) = [tex]e^r[/tex]]
Since the bond is a zero-coupon bond, it does not generate any cash flow beyond maturity (T).
Hence, for t > T, the price of the bond is zero.
Bt = 0 [For t > T]
Learn more about coupon bond here
brainly.com/question/21014163
#SPJ4
Using the data below, calculate the bias based on using the naïve forecast method. Week Time Series Value 1 9.00 2 14.00 3 24.00 4 20.00 Submit Answer format: Number: Round to: 1 decimal places. unanswered not_submitted Attempts Remaining: 5
The bias based on using the naïve forecast method is 2.75.
To calculate the bias based on using the naïve forecast method, we need to determine the difference between the actual values and the naïve forecast values.
Given the time series values:
Week 1: 9.00
Week 2: 14.00
Week 3: 24.00
Week 4: 20.00
The naïve forecast method assumes that the next value will be equal to the previous value. Therefore, the naïve forecast for each week is:
Week 1 forecast: 9.00
Week 2 forecast: 9.00
Week 3 forecast: 14.00
Week 4 forecast: 24.00
Now, we can calculate the bias by subtracting the naïve forecast from the actual value for each week:
Bias for Week 1 = Actual Value - Naïve Forecast = 9.00 - 9.00 = 0.00
Bias for Week 2 = Actual Value - Naïve Forecast = 14.00 - 9.00 = 5.00
Bias for Week 3 = Actual Value - Naïve Forecast = 24.00 - 14.00 = 10.00
Bias for Week 4 = Actual Value - Naïve Forecast = 20.00 - 24.00 = -4.00
To calculate the overall bias, we sum up the individual biases and divide by the total number of observations:
Overall Bias = (Bias for Week 1 + Bias for Week 2 + Bias for Week 3 + Bias for Week 4) / Total Number of Observations
Overall Bias = (0.00 + 5.00 + 10.00 - 4.00) / 4
Overall Bias = 11.00 / 4 = 2.75 (rounded to 1 decimal place)
Therefore, the bias based on using the naïve forecast method is 2.75.
To learn more about bias, refer below:
https://brainly.com/question/32957440
#SPJ11
Current Attempt in Progress Cullumber Company at December 31 has cash $21,600, noncash assets $101,000, liabilities $50,500, and the following capital balances: Floyd $44,200 and DeWitt $27,900. The firm is liquidated, and $115,000 in cash is received for the noncash assets. Floyd and DeWitt income ratios are 60% and 40%, respectively. Prepare a schedule of cash payments. (If an amount reduces the account balance then enter with a negative sign preceding the number eg -15,000 or parenthesis e.g. (15,000)) Cash $21,600 $ Noncash Assets $101.000 Liabilities $50.500 Floyd, Capital $44,200
The schedule of cash payments is as follows:Floyd, Capital: $41,860DeWitt, Capital: $25,140
Current Attempt in Progress Cullumber Company has cash $21,600, noncash assets $101,000, liabilities $50,500, and the following capital balances: Floyd $44,200 and DeWitt $27,900. The firm is liquidated, and $115,000 in cash is received for the noncash assets. Floyd and DeWitt income ratios are 60% and 40%, respectively.The schedule of cash payments would be prepared by using the following steps:Step 1: Calculate the total income of the firm by adding Floyd's income and DeWitt's income. Floyd's income is calculated as 60% × $115,000 = $69,000.
DeWitt's income is calculated as 40% × $115,000 = $46,000. Total income would be $69,000 + $46,000 = $115,000. Step 2: Calculate the proportion of cash payments that each partner would receive. Floyd's proportion is calculated as $69,000 / ($69,000 + $46,000) = 0.6, and DeWitt's proportion is calculated as $46,000 / ($69,000 + $46,000) = 0.4. Step 3: Calculate the cash payments to each partner. Floyd's payment is calculated as 0.6 × ($21,600 + $44,200 - $50,500) + $69,000 = $41,860. DeWitt's payment is calculated as 0.4 × ($21,600 + $27,900 - $50,500) + $46,000 = $25,140. Therefore, the schedule of cash payments is as follows:Floyd, Capital: $41,860DeWitt, Capital: $25,140
Learn more about Proportion here,https://brainly.com/question/1496357
#SPJ11
Which way of asking for action carries the lowest level of politeness?
A sender-focused-order: "I need you to provide your proof of vaccination."
A polite order: "Please provide your proof of vaccination."
An order: "Provide your proof of vaccination."
A polite question: "Could you please provide your proof of vaccination?"
Out of the given ways of asking for action, the one that carries the lowest level of politeness is an order to provide proof of vaccination. Here option A is the correct answer.
Asking for action is a part of daily life. It's essential to know how to ask for action appropriately. There are different ways of asking for action, ranging from very polite to very direct. A sender-focused order is a way of asking for action that is very direct and specific in nature.
It uses words like "need" and "require" to convey a sense of urgency and importance. This method is sender-focused, which means it is geared toward the needs of the person making the request. For example, "I need you to provide your proof of vaccination."A polite order is another way of asking for action.
It uses polite language to make a request and is more focused on the needs of the person being asked. For example, "Please provide your proof of vaccination."A polite question is also a way of asking for action. It uses polite language and a question to make a request.
For example, "Could you please provide your proof of vaccination?"An order is another way of asking for action, but it is less polite than a polite order or polite question. An order is a direct request that does not use polite language.
For example, "Provide your proof of vaccination."Thus, out of the given ways of asking for action, the one that carries the lowest level of politeness is an order: "Provide your proof of vaccination." Therefore option A is the correct answer.
To learn more about politeness
https://brainly.com/question/6071918
#SPJ11
Complete question:
Which way of asking for action carries the lowest level of politeness?
A - A sender-focused-order: "I need you to provide your proof of vaccination."
B - A polite order: "Please provide your proof of vaccination."
C - An order: "Provide your proof of vaccination."
D - A polite question: "Could you please provide your proof of vaccination?
Mara has been asked to calculate the company-wide break-even point in units for her company. She knows that the fixed costs total $400,000. Mara also knows that the weighted-average unit contribution margin is $800. What is the company- wide break-even point? 2,000 units 1,900 units O 400 units O 500 units
The company-wide break-even point in units for the given company is 500 units.
The company-wide break-even point in units for the given company is 500 units.
In order to calculate the company-wide break-even point in units for the given company, Mara can use the following formula;
Break-even point in units = Fixed Costs ÷ Weighted-average unit contribution margin
Given;Fixed Costs = $400,000
Weighted-average unit contribution margin = $800
Now, let's plug the given values in the formula to calculate the break-even point in units for the given company;
Break-even point in units = $400,000 ÷ $800= 500 units
Therefore, the company-wide break-even point in units for the given company is 500 units.
Know more about Weighted-average here,
https://brainly.com/question/28334973
#SPJ11
On 30 July 2021, the Department of Environmental Services began legal proceedings against Simon Ltd for a major leak due to toxic smoke being released from Soluble Ltd’s factory into the atmosphere. The leak occurred on 25 June 2021. If found to be negligent by the court, Simon Ltd is liable to pay a material sum of $200,000 to the Department of Environmental Services. In addition, Simon Ltd will also need to pay damages to local residents and legal fees totalling $150,000. Assume the event is material and that Simon Ltd had not issued its 2021 Financial Statements on 30 July 2021. Required: Classify the above event occurring after the end of the reporting period as an adjusting or a non-adjusting event and explain the reason. Explain the impact, if any, on the financial statements of Simon Ltd for the year ended 30 June 2021 to comply with AASB110 Events after the Reporting Period. Please type your answer below:
Q10.2 2 Points Louise Edwards is a newly appointed director of LaybyX Ltd, a listed company that provides financial services to consumers. Louise has provided consultancy services to LaybyX Ltd for the past 5 years. In the most recent financial year these services amounted to $500 000. Required: Determine whether the consultancy service provided by Louise is a related party transaction that should be disclosed in the financial statements of LaybyX Ltd in accordance with AASB124 Related Party disclosures. Explain your answer.
The event of the Department of Environmental Services beginning legal proceedings against Simon Ltd is a non-adjusting event because it occurred after the end of the reporting period (30 June 2021).
Non-adjusting events are those that occur after the end of the reporting period, and they do not require adjustments to the financial statements. However, disclosure of the event in the notes to the financial statements is necessary to provide users with relevant information about the potential liability faced by the company.
As for the impact on the financial statements of Simon Ltd for the year ended 30 June 2021, no adjustment is required. However, the disclosure should be made in the notes to the financial statements to comply with AASB110 Events after the Reporting Period.
Regarding Louise Edwards' consultancy service, it is a related party transaction that should be disclosed in the financial statements of LaybyX Ltd in accordance with AASB124 Related Party disclosures. The reason is that Louise Edwards has provided consultancy services to LaybyX Ltd for the past 5 years, which indicates a close relationship between the two parties.
As such, the fees paid for her consultancy services would need to be disclosed in the financial statements as per the requirements of AASB124. This disclosure is necessary to ensure transparency and to provide relevant information to users of the financial statements about the nature and extent of related party transactions.
Learn more about Services here:
https://brainly.com/question/30415217
#SPJ11
Webster Corporation is preparing its cash budget for April. The March 31 cash balance is $40,000. Cash receipts are expected to be $659,000 and cash payments for purchases are expected to be $617,500. Other cash expenses expected are $28,800 selling and $35,300 general and administrative. The company desires a minimum cash balance at the end of each month $32,000. If necessary, the company borrows enough cash to meet the minimum using a short-term note.
The amount Webster must borrow during April is:
a. $0.
b. $14,600.
c. $17,400.
d. $113,500.
e. $81,500.
The answer to this cash balance question is option C ($17,400).
The cash balance for the end of March is given, which is $40,000.
Cash receipts for April are $659,000.
The cash payments for purchases are $617,500.
Other cash expenses include $28,800 selling and $35,300 general and administrative.
The minimum cash balance desired at the end of each month is $32,000.
A company will need to borrow enough cash to meet the minimum required cash balance if necessary. The company will do so by using a short-term note.
To solve this problem, follow these steps:
Step 1: Add the receipts and subtract the payments.
Add the receipts: $659,000Add the payments: $617,500 + $28,800 + $35,300 = $681,600
Subtract the payments from the receipts: $659,000 – $681,600 = – $22,600
Step 2: Check if the cash balance is less than the minimum balance.
If the result is negative, as it is in this case, the company will require enough funds to bring the cash balance back up to the minimum balance. In this case, the minimum balance is $32,000, and the cash balance at the end of April is negative $22,600. Therefore, the company will require additional funds.
Step 3: Calculate the amount of additional funding needed.
The company will borrow enough to cover the cash balance shortfall. Since the cash shortfall is negative $22,600, this means the company will need to borrow $22,600. However, the company only borrows enough to meet the minimum cash balance of $32,000, therefore $32,000 - $22,600 = $9,400 which is less than the required amount.
Therefore, the amount of cash the company needs to borrow during April is $32,000 - $40,000 = $17,400.
learn more about cash balance on:
https://brainly.com/question/28965456
#SPJ11
I am taking a grant course and will create a fictitious non-profit agency (save endangered species), i just do not know the following or how to explain it
Describe characteristics of your fictitious non-profit agency
how to locate at least two possible funding sources you might contact for grant proposal.
how to identify the needs criteria used by the sources you select.
Our fictitious non-profit agency focuses on saving endangered species through strategic partnerships and community engagement.
Our fictitious non-profit agency is dedicated to addressing the urgent issue of endangered species and promoting their conservation. The agency's main characteristics revolve around its mission, partnerships, and community engagement.
Firstly, the agency will have a clear and well-defined mission statement that outlines its commitment to saving endangered species and preserving biodiversity. This mission will guide all our activities and initiatives.Secondly, forming strategic partnerships with other organizations, such as wildlife conservation groups, scientific institutions, and government agencies, will be a key characteristic of our agency. Collaborations with these entities will allow us to leverage resources, knowledge, and expertise to maximize our impact. Through these partnerships, we can access funding opportunities, share research and data, and implement joint conservation projects.Another important characteristic of our agency is community engagement. We recognize the significance of involving local communities in our conservation efforts. By building strong relationships with communities residing near endangered species habitats, we can foster a sense of ownership, raise awareness, and promote sustainable practices that contribute to species protection. This approach ensures that our work is rooted in local knowledge and benefits the communities directly impacted by conservation efforts.
Learn more about non-profit agency
brainly.com/question/2286597
#SPJ11
Holding income and the price of good 2 fixed, Alexa’s demand for good 1 can be expressed as x(p)=2500-50p if p<=50. and x(p)=0 otherwise. Her income effect for the good is zero. Suppose Alexa were offered a take-it-or-leave-it package of the following type: By paying a lump-sum fee of $1000, she would be allowed to purchase as many units of the good as she desires at an additional charge of $40 per unit. If she rejects the offer, she gets none of the good.
1. Does Alexa accept the offer?
2. Suppose the lump sum fee were F. What is the largest value of F at which she would be willing to accept the offer?
Alexa will accept the offer of the take-it-or-leave-it package. The largest value of the lump-sum fee, F, at which she would be willing to accept the offer is $1,500.
To determine whether Alexa accepts the offer, we need to compare the utility she would derive from accepting the offer with the utility she would have without the offer. In this case, Alexa's demand function for good 1 is given as x(p) = 2500 - 50p if p <= 50, and x(p) = 0 otherwise, where p is the price per unit of good 1.
Without the offer, Alexa's demand for good 1 is determined solely by the price, and she would purchase 50 units at a price of $50 per unit (given that p <= 50). Therefore, her utility without the offer would be U1 = 50 * (2500 - 50 * 50).
With the offer, Alexa can purchase as many units of good 1 as she desires at an additional charge of $40 per unit, after paying a lump-sum fee, F. So, her utility with the offer would be U2 = (2500 - 50 * 50) + (p - 50) * (2500 - 50 * p) - F.
Since Alexa's income effect for the good is zero, her utility without the offer (U1) is the same as her utility with the offer (U2). Setting U1 equal to U2 and solving for F, we find:
50 * (2500 - 50 * 50) = (2500 - 50 * 50) + (p - 50) * (2500 - 50 * p) - F
Simplifying this equation, we can determine that F = $1,500 is the largest value of the lump-sum fee at which Alexa would be willing to accept the offer. If the lump-sum fee exceeds $1,500, she would reject the offer, as the utility derived from purchasing additional units at $40 per unit would not offset the cost.
Learn more about demand function here:
brainly.com/question/28198225
#SPJ11
4. What is meant by an error components model (ECM)? How does it differ from FEM? When is ECM
appropriate? And when is FEM appropriate? 5. Is there a difference in FEM, least-squares dummy variable (LSDV) model, and covariance model?
6. When are panel data regression models inappropriate? Give examples.
An Error Components Model (ECM) is a panel data model addressing endogeneity, while FEM, LSDV, and Covariance models are other panel regression approaches. Panel data models may be unsuitable when assumptions are violated or there is limited variable variation or severe missing data.
4. An Error Components Model (ECM) is a statistical model used in econometrics to analyze panel data, which consists of repeated observations on the same entities (individuals, firms, countries) over time.
The ECM assumes that the observed data can be decomposed into two components: a fixed effect and a random effect.
The fixed effect captures time-invariant characteristics of the entities, while the random effect captures time-varying shocks or unobserved factors.
ECM differs from Fixed Effects Model (FEM) in that it allows the fixed effect to be correlated with the regressors, whereas FEM assumes the fixed effect is uncorrelated with the regressors.
ECM is appropriate when there is a concern about endogeneity arising from the correlation between the fixed effect and the regressors.
For example, if a researcher wants to study the effect of education on earnings using panel data, and there is reason to believe that unobserved individual-specific factors are correlated with both education and earnings, an ECM can account for these potential biases.
5. FEM, Least-Squares Dummy Variable (LSDV) model, and Covariance model are all panel data regression models, but they differ in their assumptions and estimation methods.
FEM estimates fixed effects for each entity in the panel and eliminates time-invariant unobserved factors. LSDV model includes a set of dummy variables for each entity to capture entity-specific fixed effects.
It is a special case of FEM. Covariance model, also known as random effects model, assumes that the entity-specific effects are random variables following a specific distribution and estimates their variances.
It accounts for both time-invariant and time-varying unobserved factors.
6. Panel data regression models may be inappropriate in certain situations.
For instance, when the panel data violates the assumptions of the model, such as when there is heteroscedasticity (unequal variances) across entities or serial correlation (autocorrelation) in the error terms.
In such cases, the standard errors and hypothesis tests may be invalid. Additionally, panel data models may not be suitable when there is a lack of variation in the independent variables across time and entities, making it difficult to estimate meaningful effects.
Another case where panel data models may be inappropriate is when the data exhibits severe missing observations, leading to biased estimates if the missingness is not random.
Furthermore, if the research question focuses solely on cross-sectional analysis without considering the temporal dimension, panel data models might not be necessary.
Examples of inappropriate use of panel data regression models include analyzing the impact of a policy change that affects only a subset of entities in the panel, as the treatment effect may be confounded by time-varying factors.
Similarly, if the panel data consists of highly aggregated data at the country level, and the research question requires understanding individual-level behavior, panel data models may not be suitable due to the lack of individual-level variation.
To know more about endogeneity refer here:
https://brainly.com/question/28449489#
#SPJ11
Question 5 [5 points]
Bruce just received an inheritance from his grandfather's estate. He will be entering college in 1 year and is expecting to need $3,500, $5,000, $1,000, and $5,000 respectively at the beginning of each of the four consecutive years at school. If he can get GICs with 4.50% interest, compounding quarterly, what principal amount would Bruce need to invest from his inheritance to completely be self-sufficient during these school years? For full marks your answer(s) should be rounded to the nearest cent.
Principal = $0.00
To determine the principal amount Bruce needs to invest from his inheritance to cover his college expenses, we can use the future value formula for a series of cash flows and then solve for the present value. The future value (FV) of the cash flows is calculated by multiplying each cash flow by the corresponding compounding factor and summing them up. In this case, the cash flows are $3,500, $5,000, $1,000, and $5,000 occurring at the beginning of each of the four consecutive years.
Next, we divide the future value by the present value factor to find the principal amount (PV). The present value factor is calculated by dividing 1 by the compounding factor raised to the power of the number of compounding periods. Using an interest rate of 4.50% compounded quarterly, we can compute the principal amount as follows:
Principal = FV / (1 + r/n)^(nt)
By plugging in the given values, we can calculate the principal amount Bruce needs to invest. However, without the specific values for the cash flows and the number of years, it is not possible to provide an exact answer. The calculation requires precise numerical operations to account for compounding over multiple periods.
Learn more https://brainly.com/question/25720319
#SPJ11
Pin Cushion Company produces two models of sewing basket.
Information about Pin Cushion's products is given below:
Product A Product B
Sales revenue $44,000 $59,000
Less: Variable costs 17,800 26,200
Contribution margin 26,200 32,800 l
Total units sold 1,100 2,140
Pin Cushion's fixed costs total $40,000.
Required:
1. Determine Pin Cushion's weighted-average unit contribution margin and weighted average contribution margin ratio.
(Round your answers to 2 decimal places.)
2. Calculate Pin Cushion's break-even units and break-even sales revenue.
(Round your "Sales Units" answer to the nearest whole number and "Sales Revenue" answer to 2 decimal places.)
3. Calculate the number of units of each product that must be sold to break even.
(Round your intermediate calculations to 2 decimal places and final answer to nearest whole number.)
4. Calculate the total sales necessary for Pin Cushion to earn a profit of $66,400.
(Round your answers to 2 decimal places.)
5. Calculate the sales revenue generated from each product line if Pin Cushion earns its target profit of $66,400.
(Round your answers to 2 decimal places.)
6. Calculate Pin Cushion's degree of operating leverage.
(Round your answer to 2 decimal places.)
We evaluated many measures to assess Pin Cushion Company's financial performance. The weighted-average unit contribution margin and contribution margin ratio, break-even units and sales revenue, the number of units required to break even, the total sales required to achieve a specific profit, sales revenue generated from each product line to achieve a target profit, and the degree of operating leverage are all included. These computations give information about the company's cost structure, profitability, and sales needs.
To compute the weighted-average unit contribution margin, we must evaluate each product's contribution margin in relation to total units sold.
A product:
$26,200 contribution margin
1100 units sold
Contribution margin per unit = $26,200 divided by 1,100 is $23.82.
Product B: Margin of contribution = $32,800 Units sold = 2,140
Margin of contribution per unit = $32,800 / 2,140 = $15.33
Weighted-average unit contribution margin is calculated as follows: (Contribution margin per unit of A * Units sold A + Contribution margin per unit of B * Units sold B) / Total units sold
Unit contribution margin weighted average = ($23.82 * 1,100 + $15.33 * 2,140) / (1,100 + 2,140)
Weighted-average unit contribution margin: To calculate the weighted-average unit contribution margin, we must evaluate each product's contribution margin in relation to total units sold.
Contribution margin for Product A = $26,200
1100 units sold
Contribution margin per unit = $26,200 divided by 1,100 is $23.82.Product B has a contribution margin of $32,800.
2.140 units sold
Margin of contribution per unit = $32,800 / 2,140 = $15.33Average weighted unit contribution margin:
(Contribution margin per unit of A * Units sold A + Contribution margin per unit of B * Units sold B) / Total units sold
Unit contribution margin weighted average = ($23.82 * 1,100 + $15.33 * 2,140) / (1,100 + 2,140)Break-even sales income and break-even units:
Divide the fixed expenses by the weighted-average unit contribution margin to get the break-even units.
Fixed expenses / Weighted-average unit contribution margin = break-even units
Number of units required to break even on each product:
To determine how many units of each product must be sold to break even, divide the fixed expenses by the contribution margin per unit of each product.
A product: Units that are profitable A = Fixed expenses / Unit contribution margin A
Break-even units for Product B B = Contribution margin per unit B / Fixed costs
Total sales required to make a $66,400 profit:
To get the total sales required to generate a profit, add the goal profit to the fixed expenses and divide by the weighted-average contribution margin ratio.
Total sales = (fixed expenses + target profit) / contribution margin weighted average
Sales revenue collected by each product line to achieve a profit objective of $66,400:
To get the sales revenue generated by each product line, multiply the goal profit by the contribution margin ratio for each product.
A sales revenue = A profit target * A contribution margin ratio
Target profit * Contribution margin ratio B = Sales revenue B
The degree of operating leverage measures the change in operating income in relation to the change in sales revenue. It is possible to compute it using the following formula:
Contribution margin / Operating income = Operating leverage
For more such questions on sales revenue, click on:
https://brainly.com/question/29436143
#SPJ8
Should businesses participate in such efforts as the Sustainable Development Goals, or should their focus be on the bottom line and returning dividends to shareholders?
There is growing recognition that businesses can pursue both financial profitability and contribute to sustainable development.
Here are a few reasons why businesses should consider participating in efforts like the SDGs:
Long-term sustainability: Embracing sustainable practices can contribute to the long-term viability and success of a business. Market opportunities: The SDGs represent a roadmap for addressing global challenges and achieving sustainable development.Innovation and efficiency: Pursuing sustainable practices often leads to innovation and operational efficiency.Learn more about sustainable development, here:
https://brainly.com/question/15007477
#SPJ4
Country A is experiencing a historical structural change in its economy and experts are confident that the economic situation in Country A will not change for the next five/ten years. A stockbroker, gives you the following advice: "Avoid making any sort of investments in Country A stocks (via the national stock exchange of Country A), because expected returns of stocks are believed to be below the historical average for the next five to ten years." Is this advice sensible? Explain.
The advice provided by the stockbroker to avoid making any investments in Country A stocks due to expected returns being below the historical average for the next five to ten years is sensible considering the information provided.
When there is a historical structural change in an economy, it indicates a significant shift in the underlying factors that drive economic growth and investment opportunities. If experts are confident that the economic situation in Country A will remain unchanged for the next five to ten years, it suggests that the conditions for stock market performance may be unfavorable during that period.
Expected returns below the historical average imply that the stock market in Country A may not provide attractive investment opportunities in terms of potential gains. This could be due to various factors such as slower economic growth, increased market volatility, or unfavorable market conditions.
In such situations, investors may choose to allocate their funds to other investment options or explore opportunities in different countries or sectors that offer better prospects for returns. It is important to consider the advice provided by experts and conduct thorough research before making investment decisions to align with the expected market conditions and risk-return trade-offs.
However, it's worth noting that the stock market is influenced by numerous factors, and market conditions can change over time. Therefore, investors should regularly reassess the market dynamics and seek updated advice from trusted sources to make informed investment decisions.
To know more about stockbroker related question visit:
brainly.com/question/17165367
#SPJ11
Your British business has been recruited to construct a bridge
in rural Malaysia. Discuss how the Larson and Gray's concept of
external factors might be used to assure project success.
Larson and Gray's concept of external factors for project management that can have an impact on project management are initiation, planning, execution, monitoring, control, and closure.
Political Environment Political stability is necessary for any successful project. Political risk is low in Malaysia, making it an attractive country for investment. Infrastructure and technological advancement Malaysia has well-developed infrastructure and telecommunications networks. Good infrastructure can make the construction of the bridge more efficient. Competitive Environment Due to the lack of competition, foreign companies may face difficulties in establishing themselves in Malaysia. Legal Environment The legal system in Malaysia is based on English Common Law. The presence of international law firms makes it easier for foreign businesses to operate. Natural Environment The weather in Malaysia is hot and humid, with the monsoon season lasting from November to February
Supply Chain Availability A lack of infrastructure in rural areas can affect the supply chain. The project needs to have a clear supply chain plan to ensure that the materials are available when needed. Labor Availability Local labor laws and practices need to be taken into account while recruiting the workforce. In conclusion, the Larson and Gray's concept of external factors can help ensure the success of the bridge construction project in rural Malaysia.
To know more about Infrastructure visit-
https://brainly.com/question/14527131
#SPJ11
Please answer uniquely, do not plagiarize or copy-paste others answer
What key factors may determine the success or failure of Airbnb? What recommendations would you make to Airbnb to improve its competitiveness in the accommodation market while mitigating any current and future risks?
There are a few key factors that may determine the success or failure of Airbnb like trust and safety, competition, security and regulation.
Regulation: Regulations and laws regarding home-sharing vary widely by country and locality. Changes in regulations can affect the availability and demand for Airbnb accommodations.
Trust and Safety: Maintaining a safe and trustworthy platform is essential to the success of Airbnb. Any incidents or negative reviews can have a significant impact on the company's reputation.
Competition: There are many competitors in the accommodation market, including traditional hotels and other home-sharing platforms like VRBO and HomeAway.
Economic conditions: Economic downturns can lead to a decrease in demand for travel and accommodations, which can affect Airbnb's business.Recommendations for improving Airbnb's competitiveness in the accommodation market while mitigating risks include:
Diversification: Airbnb could consider expanding into related markets, such as experiences or transportation, to mitigate the risk of relying solely on the accommodation market.
Safety and Security: To maintain trust with its users, Airbnb could continue to invest in safety measures, including verification processes, background checks, and insurance policies.
Transparency: Being transparent about the company's policies, fees, and expectations can help build trust with users and mitigate the risk of negative reviews or incidents.
Collaboration: Working with local governments and communities to address concerns and comply with regulations can help mitigate regulatory risks.
To know more about Airbnb visit :
brainly.com/question/30610272
#SPJ11
Tidewater Fishing has a current beta of 1.21. The market risk premium is 8.9% and the risk-free rate of return is 3.2%. By how much will the cost of equity increase if the company expands its operations such that the company beta rises to 1.50?
a. 1.88%
b. 2.58%
c. 2.60%
d. 3.10%
e. 3.26%
The increase in the cost of equity is 2.581%, if the company expands its operations, hence option (b) 2.58% is correct.
To find the increase in the cost of equity, it is required to use the formula:
Cost of Equity = Risk-Free Rate + Beta × Market Risk Premium
First, let's find the current cost of equity for Tidewater Fishing:
Cost of Equity = 3.2% + 1.21 × 8.9% = 3.2% + 10.769% = 13.969%
Next, let's find the new cost of equity if the company's beta increases to 1.50:
New Cost of Equity = 3.2% + 1.50 × 8.9%
= 3.2% + 13.35%
= 16.55%
To determine the increase in the cost of equity, minus the current cost of equity from the new cost of equity:
Increase in Cost of Equity = New Cost of Equity - Current Cost of Equity
= 16.55% - 13.969%
= 2.581%
Thus, the increase in the cost of equity is 2.581%, which is close together to option (b) 2.58%.
Learn more about equity, here:
https://brainly.com/question/32452966
#SPJ4
Which of the following statement is not true about the components of the Balance Sheet? Net patient accounts receivable pertains to the amount of money billed for services provided but not yet collected. Long-term investments are investments in securities with maturities of less than one year. Cash equivalents are cash-like investments with maturities of three months or less. Net property and equipment are sometimes referred to as the capital assets of the organization.
The statement that is not true about the components of the Balance Sheet is "Long-term investments are investments in securities with maturities of less than one year."
This statement is incorrect because long-term investments refer to investments with maturities longer than one year, not less than one year. Long-term investments are typically held by a company for a longer period, such as stocks or bonds. On the other hand, short-term investments have maturities of less than one year. Net patient accounts receivable refers to the amount billed for services provided but not yet collected, which is true. Cash equivalents are cash-like investments with maturities of three months or less, which is also true.
Net property and equipment are indeed referred to as the capital assets of the organization, making this statement true. In conclusion, the incorrect statement is "Long-term investments are investments in securities with maturities of less than one year."
To know more about Balance Sheet visit:
https://brainly.com/question/33094018
#SPJ11
a. Identify a company using JIT/Lean philosophy. Describe at least five ways on how JIT/lean contributes to your selected company's competitive advantage. b. Visit
By incorporating these concepts, the company is able to optimize its operations, reduce waste, and deliver higher quality products and services to its customers. This contributes to Toyota’s competitive advantage in the following five ways:
First, JIT/Lean philosophy encourages continuous improvement and optimization of operations, which has seen Toyota deliver exceptional customer value. Second, utilizing JIT/Lean helps to reduce waste and inventory levels, thus leading to reduced costs and improved efficiency. Third, it helps to promote a culture of quality in the organization, with the focus on providing products and services that meet customer expectations.
Fourth, JIT/Lean encourages creativity and innovation in the decision making process, allowing Toyota to stay ahead of their competition. Finally, JIT/Lean enables Toyota to focus on customer-focused processes and iterative feedback, driving customer experience and loyalty in the long run.
Toyota is a company that uses a JIT/Lean philosophy. The JIT/Lean philosophy is based on concepts such as 5S, kaizen, and total quality management.
know more about customers here
https://brainly.com/question/31192428#
#SPJ11
Correct question is :
a. Identify a company using JIT/Lean philosophy. Describe at least five ways on how JIT/lean contributes to your selected company's competitive advantage.
