A budgeted balance sheet can be prepared at the end of March, we need to consider the given information and make the necessary calculations. Here's the breakdown:
1. Cash: The ending cash balance for March is $50,000.
2. Accounts Receivable: Accounts receivable is expected to be 70% of the current-month sales. The sales budget for March indicates sales of $140,000. Therefore, the accounts receivable balance would be 70% of $140,000, which is $98,000.
3. Inventory: The ending inventory for March is predicted to be 600 units at a cost of $35 each. Therefore, the inventory balance would be 600 units * $35 = $21,000.
4. Equipment: The equipment balance remains unchanged at $84,000.
5. Accumulated Depreciation: The accumulated depreciation balance remains unchanged at $46,000.
6. Common Stock: The common stock balance remains unchanged at $25,000.
7. Retained Earnings: The budgeted net income for March is $48,000. Deducting the depreciation expense of $1,000 and income tax expense of $26,000, we get the retained earnings increase for March: $48,000 - $1,000 - $26,000 = $21,000. Adding the ending retained earnings of $8,000, we get the new retained earnings balance:
$21,000 + $8,000 = $29,000.
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Determine the meaning of the following codes from box 12 on the
W-2. How do these items impact the tax return of an individual?
Code C, W, D, & DD.
Code C represents the cost of group-term life insurance coverage provided by the employer. It is generally taxable income subject to certain exceptions.
Code W represents employer contributions to an employee's health savings account (HSA). It is not taxable income and may be deductible on the individual's tax return.
Code D represents the amount of elective deferrals to a 401(k) or 403(b) retirement plan. It reduces the individual's taxable income for the year, resulting in potential tax savings.
Code DD represents the cost of employer-sponsored health coverage. It is informational and does not impact the individual's tax return.
The codes in Box 12 of the W-2 form. Code C indicates taxable income from group-term life insurance coverage provided by the employer, which may affect the individual's tax liability. Code W represents non-taxable employer contributions to an HSA, which can be beneficial in terms of tax savings. Code D signifies elective deferrals to retirement plans, reducing the individual's taxable income and potentially lowering their tax liability. Code DD is informational, providing details about employer-sponsored health coverage but does not have a direct impact on the individual's tax return. The explanation elaborates on the implications of each code and how they can influence an individual's tax situation.
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QUESTION Ghanaian businesses often ignore and, in some cases, do not see the importance of corporate governance and ensuring good board practices. Identify any Ghanaian company or from elsewhere where there is clear evidence of dysfunctional boards providing relevant explanations.
One example of a Ghanaian company with clear evidence of dysfunctional boards is the Agricultural Development Bank (ADB) in Ghana.
The Agricultural Development Bank (ADB) is a state-owned financial institution in Ghana. Over the years, there have been numerous reports and allegations of dysfunctional board practices within the bank. Some key issues include:
Political interference: There have been instances where board appointments and decisions within ADB were influenced by political considerations rather than professional qualifications and expertise. This can hinder the effective functioning of the board and compromise corporate governance principles.
Lack of independence: There have been concerns about the lack of independence of ADB's board members. Some individuals appointed to the board had close ties to political figures or other stakeholders, which can impede objective decision-making and accountability.
Weak oversight and accountability: There have been instances of financial mismanagement and questionable lending practices within ADB. These issues raise questions about the effectiveness of the board's oversight role in ensuring proper risk management and adherence to ethical standards.
Inadequate transparency and disclosure: There have been criticisms of the board's failure to provide sufficient transparency and timely disclosure of relevant information to stakeholders. This lack of transparency undermines trust and confidence in the board's decision-making processes.
The example of the Agricultural Development Bank (ADB) in Ghana highlights the existence of dysfunctional boards and the importance of corporate governance practices. It emphasizes the need for Ghanaian businesses, and organizations elsewhere, to recognize the significance of good board practices in ensuring transparency, accountability, and effective decision-making for sustainable business growth.
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After working for 10 years, you would like to take off for a month and travel Europe. You will need a total of $20,000 for your travel and living expenses. How much will you need to deposit at the end of each work year in an account that earns 6% interest to make this dream a reality?
How would I put this in excel formula format
To make this dream a reality, you would need to deposit approximately $1,600 at the end of each work year in an account that earns 6% interest.
To calculate the amount to be deposited at the end of each work year, we can use the future value of an ordinary annuity formula. The formula is as follows:
FV = P * [(1 + r)^n - 1] / r
Where:
FV = Future value (desired amount - $20,000)
P = Annual deposit
r = Interest rate per period (6% or 0.06)
n = Number of periods (10 years)
Rearranging the formula to solve for P:
P = FV * (r / [(1 + r)^n - 1])
Plugging in the values:
FV = $20,000
r = 0.06
n = 10
P = $20,000 * (0.06 / [(1 + 0.06)^10 - 1])
P ≈ $1,600
To achieve the goal of saving $20,000 for your travel expenses in Europe after 10 years, you would need to deposit approximately $1,600 at the end of each work year into an account that earns a 6% interest rate. By consistently saving this amount over the years, you can accumulate the necessary funds to fulfill your dream.
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Evaluate the role IT systems such as MRP and ERP have within an organization’s operations and analyze how these systems interact with strategic planning. Where appropriate, include personal anecdotes, statistics, and references
MRP (Material Resource Planning) and ERP (Enterprise Resource Planning) are two types of IT systems that are used in organizations to improve operational efficiency and help organizations achieve their strategic goals.
MRP (Material Resource Planning) is used to manage inventory levels, track the movement of goods, and plan production schedules. These systems can also be used to determine the quantity of raw materials needed for a specific product, and when they should be ordered. Additionally, MRP systems can be used to monitor the status of work orders, track inventory levels, and alert managers to any issues that may arise. An example of an MRP system is SAP.
ERP (Enterprise Resource Planning) systems are used to manage all aspects of an organization's operations. These systems can be used to manage inventory levels, track the movement of goods, and plan production schedules, just like MRP systems. However, ERP systems can also be used to manage other aspects of an organization's operations, such as finance, human resources, and customer relationship management. An example of an ERP system is Oracle.
Both MRP and ERP systems can be used to support strategic planning. MRP systems can be used to monitor inventory levels, track the movement of goods, and plan production schedules. This information can be used to inform strategic decisions, such as which products to produce, how much to produce, and when to produce them. Similarly, ERP systems can be used to manage all aspects of an organization's operations. This can provide managers with real-time data about their organization's performance, which can be used to inform strategic decisions.
For example, if a company wants to expand its product line, an MRP system can be used to determine the raw materials needed to produce the new product, and when they should be ordered. Additionally, an ERP system can be used to manage the production process, track inventory levels, and monitor sales data. This information can be used to make informed decisions about which products to produce, how much to produce, and when to produce them.
In conclusion, both MRP and ERP systems have a significant role in an organization's operations. They can help organizations improve efficiency, reduce costs, and achieve their strategic goals. These systems can also be used to inform strategic decisions and provide managers with real-time data about their organization's performance.
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How long did it take for an investment of $28,750 to grow to $31,000 at 1.86% compounded semi-annually? 0 years and 0.00 months Express the answer in years and months, rounded to two decimal places
It took approximately 1 year and 0.25 months (or 1 year and 3 months) for the investment of $28,750 to grow to $31,000 at a compounding rate of 1.86% semi-annually.
To calculate the time it takes for an investment to grow, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount (31,000 in this case)
P = the initial principal (28,750 in this case)
r = the annual interest rate (1.86% or 0.0186 as a decimal)
n = the number of compounding periods per year (2 in this case for semi-annual compounding)
t = the time in years (what we need to calculate)
Rearranging the formula to solve for t, we get:
t = (log(A/P)) / (n * log(1 + r/n))
Plugging in the values, we have:
t = (log(31,000/28,750)) / (2 * log(1 + 0.0186/2))
Calculating this expression, we find t ≈ 0.25 years.
Since there are 12 months in a year, 0.25 years is equivalent to 0.25 * 12 = 3 months. Rounded to two decimal places, this is approximately 0.25 months.
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Question 1: ABL shares are currently trading at a price of $12, while HHT shares are trading at a price of $6. The risk-free rate is 1.67% per year. Using the information above, perform each of the following tasks: a) Identify which of the following options are in-the-money, out-of-the-money or at-the-money: Call on ABL with a strike of $9, Call on ABL with a strike-price of $8, Put on HHT with a strike-price of $1.8 b) If HHT shares have a 10% chance of increasing by 10% and a 90% chance of decreasing by 11% by the date of the option expiration, what will be the expected return on HHT shares and the expected return on a protective put position? For simplicity you may assume the put has a price of $1 and has the same strike-price as listed above. c) Compute the Delta (number of shares) that if you also short a call on HHT will create risk-free portfolio. Assume the call is European and that the strike-price is $5.67 d) Using the information above, compute the risk-neutral probability of HHT shares increasing 10% if the time-step to the next node is 1 year. e) Identify the name of the strategy that has one long call and one long put. Any and all options may be assumed to have the same strike-price in answering this question. f) Find the Black-Scholes price of the call on ABL with a strike price of $9 if there is 6 months until the call expires and the annual standard deviation of the stock price is 20%
The Black-Scholes price of the call on ABL with a strike price of $9 is $3.08.
a) The following options are in-the-money, out-of-the-money, or at-the-money:
Call on ABL with a strike of $9 is in-the-money since the current stock price is $12
Call on ABL with a strike-price of $8 is out-of-the-money since the current stock price is $12
Put on HHT with a strike-price of $1.8 is out-of-the-money since the current stock price is $6
b) The expected return on HHT shares can be computed as follows:
Expected return = (10% x 10%) + (90% x (-11%))
= -10.1%
The expected return on a protective put position can be computed as follows:
Expected return = (10% x (-1%)) + (90% x (-12%))
= -11.1%
c) The risk-free portfolio can be created by shorting 1 share of HHT and buying Delta shares of a call option on HHT:
Delta = (Price of call - Price of put + Stock price - Strike price) / Stock price
Delta = ((0.5259) - (0.0163) + 6 - 5.67) / 6
Delta = 0.0153 shares of HHT
d) The risk-neutral probability of HHT shares increasing 10% can be computed as follows:
Risk-neutral probability = (e^(0.0167 x 1.1) - 0.89) / (1.1 - 0.89)
Risk-neutral probability = 52.17%
e) The strategy that has one long call and one long put is called a straddle.
f) The Black-Scholes price of the call on ABL with a strike price of $9 can be computed as follows:
d1 = (ln(12/9) + (0.0167 + (0.2^2 / 2)) x (0.5)) / (0.2 x sqrt(0.5))
d1 = 1.2974d2 = 1.2974 - (0.2 x sqrt(0.5))
d2 = 1.1117
Call price = 12 x N(d1) - 9 x e^(-0.0167 x 0.5) x N(d2)
Call price = (12 x 0.9037) - (9 x 0.8366)
Call price = $3.08
Therefore, the Black-Scholes price of the call on ABL with a strike price of $9 is $3.08.
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You are going to pay $100 into an account at the end of each of the next 40 years. At the beginning of the 41st year, you buy a 30-year annuity whose first payment comes at the end of the 41st year (both accounts pay 12%).
How much money will be in the account at the end of year 40 (round to the nearest $1.00?
a $85,914
b $76,709
c $44,800
d $93,000
If the future value of annuity A is greater than the future value of annuity B, then the present value of annuity A must also be greater than the present value of annuity B, when all else is equal. It is assumed that the interest rate is positive and the amounts of A and the amount of B are not zero.
a True
b False
c This question cannot be answered without knowing the dollar amount the investment.
d This question cannot be answered without knowing the exact value of the interest rate.
1.At the end of the 41st year it will receive $10700. 2. It is false that the future value of annuity A is greater than the future value of annuity B. The correct options for 1 is d and 2 is b.
1.This is an annuity due problem.
Future value of Annuity Due at the beginning of 40th year = (1+r) x P [{(1+r)n - 1} / r]
= (1.12) x 100 x [{(1.12)40 - 1} / 0.12]
= $86000 (round to nearest $100)
Annuity payment = r (PV) / [{1 - (1+r)-n}]
= 0.12 (86000) / [{1 - (1.12)-40}]
= $10700
The first annuity payment will be $10700
2.It is false if the future value of annuity A is greater than the future value of annuity B, then the present value of annuity A must also be greater than the present value of annuity B, when all else is equal. It is assumed that the interest rate is positive and the amounts of A and the amount of B are not zero. The correct option is b.
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The question is incomplete, but the complete question most probably was:
1.You are going to pay $100 into an account at the beginning of each of the next 40 years. At the beginning of the 41st year you buy a 30 year annuity whose first payment comes at the end of the 41st year (the accounts earn 12%). How much will you receive at the end of the 41st year (i.e. the first annuity payment). Round to nearest $100. PLEASE USE FORMULAS
a. $93,000
b. $7,800
c. $11,400
d. $10,700
If the future value of annuity A is greater than the future value of annuity B, then the present value of annuity A must also be greater than the present value of annuity B, when all else is equal. It is assumed that the interest rate is positive and the amounts of A and the amount of B are not zero.
a True
b False
c.This question cannot be answered without knowing the dollar amount the investment.
d This question cannot be answered without knowing the exact value of the interest rate.
S57.00 per day. ean mabe 405 unis. In Myanmar, five laborers, each making the equivalent of $2.50 per day, can produce 38 units per day. In China, nine laborers, each making the equivalent of $2.25 per day, can produce 51 units. In Billngs, Montana, three laberers, each making $57.00 per day, can make 105 units. Based on labor cost per unit only, the most economical location to produce the item is with a labor cost per unit of \& (Enter your response rounded to two decimal piaces.)
Comparing the labor cost per unit for each location, we can see that China has the lowest labor cost per unit at $0.0441.
To determine the most economical location to produce the item based on labor cost per unit, we need to calculate the labor cost per unit for each location.
In Myanmar, the labor cost per unit is (2.50/ 38) = $0.0658 per unit.
In China, the labor cost per unit is (2.25 / 51) = $0.0441 per unit.
In Billings, Montana, the labor cost per unit is (57.00 / 105) = $0.5429 per unit.
Therefore, based on labor cost per unit only, China is the most economical location to produce the item.
Please note that this analysis only considers labor cost per unit and does not take into account other factors such as transportation costs, quality, infrastructure, or other production costs, which may also impact the overall cost-effectiveness of production in different locations.
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5. Funding the nest egg shortfall Aa Aa Determining Retirement Shortfall Ryan and Rebecca are taking a personal finance course. They have calculated their projected retirement income and investment needs. Based on their calculations and taking into account their Social Security and pension incomes, they have a projected shortfall of $7,500.00 per year. They have 30 years to retirement. The impact of the inflation factor Continuing their worksheet, they consult a friend, economics professor Dr. Garcia, who believes that they can expect the average annual inflation rate to be 5%, possibly 6% tops. Calculate their inflation-adjusted annual shortfall at 5%. Then recalculate the shortfall based on the top rate provided by Dr. Garcia. Inflation-adjusted annual shortfall at 5%: $ Inflation-adjusted annual shortfall at 6%: You can use the following dropdown menu to identify the necessary future value interest factors. Future Value Interest Factors Funding the shortfall In addition to determining a realistic inflation rate, Ryan and Rebecca talked to their financial advisor to understand rates of return now and after they reach retirement First, their advisor projects that in 30 years, they can realistically earn 5% on their nest egg. Second, he recommends an investment vehicle that is earning 6% annually. Using the inflation-adjusted annual shortfall at 5% as previously calculated, determine the following: Amount of retirement funds required at 5%: $ Annual savings required to fund nest egg at 6%: $ You can use the following dropdown menu to access a table of future value interest factors. Future Value Interest Factors
Inflation-adjusted annual shortfall at 5%: $8,671.14
Inflation-adjusted annual shortfall at 6%: $9,127.46
Explanation:- Given, Projected shortfall= $7,500Number of years to retirement= 30Inflation rate at 5%So, the inflation-adjusted annual shortfall at 5% can be calculated using the below formula, Inflation-adjusted annual shortfall at 5%= 7500 * (1+5%)^30 / (1+5%)^30= 7500 * 2.327=$8,671.14Inflation rate at 6%So, the inflation-adjusted annual shortfall at 6% can be calculated using the below formula, Inflation-adjusted annual shortfall at 6%= 7500 * (1+6%)^30 / (1+5%)^30= 7500 * 2.673=$9,127.46.
Now, Amount of retirement funds required at 5% = $8,671.14 / 5% = $173,422.81Annual savings required to fund nest egg at 6% = $7,500 / (6%-5%) * (1+6%) * (1- (1+6%)^(-30)) = $3,923.25The future value interest factors table can be used to find the solution for the above problem.
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S points Discuss two methods that can be used to determine the full-employment rate of unemployment and what they suggest for the relationship between inflation and unemployment For the toolbar, press
There are different methods that can be used to determine the full-employment rate of unemployment and what they suggest for the relationship between inflation and unemployment. These methods include the natural rate of unemployment and the non-accelerating inflation rate of unemployment (NAIRU).
The natural rate of unemployment is the rate of unemployment that exists when the labor market is in equilibrium, and there is no cyclical unemployment. It is sometimes also called the equilibrium rate of unemployment. The natural rate of unemployment can be estimated using historical data, statistical models, or surveys of labor market experts.The NAIRU is the rate of unemployment that corresponds to a stable rate of inflation. It is the rate of unemployment below which inflation accelerates and above which inflation decelerates. The NAIRU can be estimated using econometric models, statistical data, or surveys of economists. The NAIRU suggests that there is a trade-off between inflation and unemployment in the short run, but not in the long run. In the short run, a decrease in unemployment may lead to an increase in inflation, and an increase in unemployment may lead to a decrease in inflation. In the long run, however, the trade-off disappears, and there is only one rate of unemployment that is consistent with a stable rate of inflation.The relationship between inflation and unemployment is known as the Phillips curve. The Phillips curve shows the inverse relationship between the unemployment rate and the inflation rate. It suggests that as unemployment falls, inflation rises, and as unemployment rises, inflation falls.However, the Phillips curve is not stable over time and has shifted in response to changes in the economy, such as changes in monetary policy, supply shocks, or changes in the structure of the labor market. Therefore, the relationship between inflation and unemployment is complex, and there is no simple formula that can describe it.
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ournalize the following transactions for Cullumber Company. Purchased 6,300 units of raw materials on account for $11.710. The standard cost was $12,600. Issued 6,030 units of raw materials for production. The standard units were 6,210. (a) (b) (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation (a) (b) Debit Credit 000
The journal entries for the given transactions of Cullumber Company can be recorded as follows:
(a) Purchased 6,300 units of raw materials on account for $11,710. The standard cost was $12,600.
No. Account Titles and Explanation Debit Credit
000 Raw Materials Inventory $11,710
Accounts Payable $11,710
This entry increases the Raw Materials Inventory (an asset account) with the cost of the purchased raw materials. It also creates a liability to Accounts Payable as the purchase was made on account.
(b) Issued 6,030 units of raw materials for production. The standard units were 6,210.
No. Account Titles and Explanation Debit Credit
000 Work-in-Process Inventory $12,252
Raw Materials Inventory $12,252
This entry decreases the Raw Materials Inventory as the raw materials are being issued for production. Simultaneously, it increases the Work-in-Process Inventory to reflect the cost of raw materials used in the production process.
Please note that the standard cost variance is not recorded in these journal entries. If necessary, a separate entry can be made to record the standard cost variance.
These journal entries accurately reflect the purchase of raw materials on account and the issuance of raw materials for production in Cullumber Company.
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"Question 4 WRONOMIE The Bearing Di nearly all of wh Bearing Division operates in the energy sector and consists of a number of business units, v all of which are involved in the processing and sale of fossil fuels. The division has been Financially very successful in recent years and, because of this the Group has allowed the division manager considerable autonomy. In any year, the size of the division manager's bonus is determined by the extent to which the division's Return on Investment (ROI) exceeds its cost of capital (which is 6%). The ROI is calculated by the Group as the net profit for the year divided by the net book value of the capital invested in the division at the beginning of the year. On the basis of existing activities, it is likely that Bearing Division's net profit next year (2020) will be $340,000 and that the net book value of its assets at 1 January 2020 will be $2,000,000. These figures do not include the effect of a possible new investment by the division man additional business unit which would be involved in the production and supply of solar energy This new solar energy business unit (SEBU) would require an additional investment of for tangible non-current assets plus $70,000 for working capital which the Group would be willing to finance. The investment would be made, and operations would begin on 1 January 2020. ""R) THE It can be assumed that SEBU would have a five-year life, and that the working capital investment would be recovered in full at the end of that time. The tangible non-current assets would be depreciated on a straight-line basis over the five vears with no residual value. It is estimated that the net operating cash flows from SEBU over the five years would be as follows: 2020: $20,000 2021: $60,000 2022: $80,000 2023: $90,000 2024: $120,000 It should be assumed that all of these net operating cash flows would arise on the last day of the year to which they relate. NB: Ignore taxation in answering this question.
Required: (a) Calculate the Return on Investment (ROI) of the new solar energy business unit (SEBU) from year 2020 to year 2024. (b) Is the manager likely to invest in SEBU? Justify your answer fully. (c) Appraise potentially superior alternatives to the existing ROI-based performance evaluation and reward system. In section (c) students should demonstrate both knowledge and understanding of the topic within theoretical viewpoints. The response should attempt to incorporate a discussion through relevant academic discussion, rather than overly describing the model. [25 marks) MDIST AY2021/22 Sem 2UOS Y3 | APC315 Page 7 of 8"
(a) To calculate the Return on Investment (ROI) of the new solar energy business unit (SEBU) from 2020 to 2024, we need to determine the net profit and the net book value of assets for each year.
Year 2020:
Net Profit: $20,000
Net Book Value of Assets: $2,000,000 + $300,000 (additional investment) = $2,300,000
ROI 2020 = Net Profit 2020 / Net Book Value of Assets 2020 = $20,000 / $2,300,000
Year 2021:
Net Profit: $60,000
Net Book Value of Assets: $2,300,000
ROI 2021 = Net Profit 2021 / Net Book Value of Assets 2021 = $60,000 / $2,300,000
Year 2022:
Net Profit: $80,000
Net Book Value of Assets: $2,300,000
ROI 2022 = Net Profit 2022 / Net Book Value of Assets 2022 = $80,000 / $2,300,000
Year 2023:
Net Profit: $90,000
Net Book Value of Assets: $2,300,000
ROI 2023 = Net Profit 2023 / Net Book Value of Assets 2023 = $90,000 / $2,300,000
Year 2024:
Net Profit: $120,000
Net Book Value of Assets: $2,300,000
ROI 2024 = Net Profit 2024 / Net Book Value of Assets 2024 = $120,000 / $2,300,000
(b) To determine whether the manager is likely to invest in SEBU, we need to compare the ROI of SEBU to the cost of capital, which is 6%.
ROI of SEBU from 2020 to 2024:
2020: ROI = $20,000 / $2,300,000
2021: ROI = $60,000 / $2,300,000
2022: ROI = $80,000 / $2,300,000
2023: ROI = $90,000 / $2,300,000
2024: ROI = $120,000 / $2,300,000
If the ROI of SEBU exceeds the cost of capital (6%) in each year, it indicates that the investment is generating higher returns than the required rate of return. In this case, the manager would be likely to invest in SEBU.
(c) There are potentially superior alternatives to the existing ROI-based performance evaluation and reward system. Some alternative approaches to consider are:
1. Economic Value Added (EVA): EVA measures the value created by a business unit after deducting the cost of capital. It considers both operating profit and capital employed, providing a more comprehensive measure of performance.
2. Balanced Scorecard: The Balanced Scorecard takes a holistic approach and considers multiple performance dimensions, such as financial, customer, internal processes, and learning and growth. It provides a more balanced view of performance beyond just financial metrics.
3. Stakeholder Value: Instead of focusing solely on shareholder value, this approach considers the interests of all stakeholders, including employees, customers, suppliers, and the community. It promotes long-term sustainability and societal impact.
4. Triple Bottom Line (TBL): TBL expands the evaluation beyond financial measures to include social and environmental aspects. It assesses performance based on three dimensions: economic, social, and environmental.
By adopting these alternative approaches, the company can assess performance from different perspectives and align its goals with a broader range of stakeholders. This can lead to a more
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The Return on Investment (ROI) for the new solar energy business unit (SEBU) from 2020 to 2024 is as follows: 0.97%, 3.62%, 6.44%, 10.87%, and 28.99%.
In order to calculate the Return on Investment (ROI) of the new solar energy business unit (SEBU) from 2020 to 2024, we need to determine the net profit and the net book value of the investment each year.
(a) The net profit for each year can be obtained from the given net operating cash flows:
2020: $20,000
2021: $60,000
2022: $80,000
2023: $90,000
2024: $120,000
The net book value of the investment can be calculated by subtracting the accumulated depreciation each year from the initial investment:
2020: $2,000,000 + $70,000 = $2,070,000
2021: $2,070,000 - ($2,070,000 / 5) = $1,656,000
2022: $1,656,000 - ($2,070,000 / 5) = $1,242,000
2023: $1,242,000 - ($2,070,000 / 5) = $828,000
2024: $828,000 - ($2,070,000 / 5) = $414,000
Now we can calculate the ROI for each year by dividing the net profit by the net book value and multiplying by 100:
2020: ($20,000 / $2,070,000) * 100 = 0.97%
2021: ($60,000 / $1,656,000) * 100 = 3.62%
2022: ($80,000 / $1,242,000) * 100 = 6.44%
2023: ($90,000 / $828,000) * 100 = 10.87%
2024: ($120,000 / $414,000) * 100 = 28.99%
(b) Whether the manager should invest in SEBU depends on the required rate of return or hurdle rate set by the company. If the company's cost of capital is higher than the ROI of SEBU, it may not be a worthwhile investment. However, without information on the company's cost of capital or hurdle rate, we cannot determine if the manager is likely to invest in SEBU.
(c) Potentially superior alternatives to the existing ROI-based performance evaluation and reward system could include incorporating other performance metrics such as net present value (NPV), internal rate of return (IRR), or economic value added (EVA). These metrics take into account the time value of money and provide a more comprehensive analysis of the investment's profitability. Additionally, considering non-financial measures such as environmental impact or social responsibility could provide a more holistic evaluation of the investment's value. The choice of alternative performance evaluation systems should align with the company's strategic objectives and values, promoting long-term sustainable growth and value creation.
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Z has a capital balance of $15,000. Cash balance is $27,000. Partner A paid the amount he owes the partnership in cash. Required: Prepare journal entries to record the above liquidation process. YOUR ANSWER SHOULD BE IN THE FOLLOWING FORM; DO NOT USE ; BETWEEN NUMBERS. Dr. Cash 100000 Cr. Land 100000
Partner A paid the full amount owed in cash, and the journal entry to record the payment is to debit Cash for the amount paid and credit Partner A's Capital for the amount owed.
Based on the given information, we can prepare the journal entries to record the liquidation process. However, the information provided does not specify the amount that Partner A owes the partnership, so we cannot accurately determine the journal entry without that information.
Assuming that Partner A paid the full amount owed in cash, the journal entry to record the payment would be:
Dr. Cash [Amount Partner A paid]
Cr. Partner A's Capital [Amount Partner A owed]
This entry reflects the reduction in the cash balance due to the payment received from Partner A and the decrease in Partner A's capital account as the amount owed is settled.
It is important to note that without the specific amount owed by Partner A, we cannot provide a precise journal entry. The given example of "Dr. Cash 100000 Cr. Land 100000" appears to be unrelated to the given scenario and does not reflect the liquidation process described.
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Your Task Study the following ineffective message from a manager to employees and staff. It suffers from numerous wordy constructions covered in this chapter. Study the message and list at least five weaknesses. Then revise to avoid excessive wordiness and repetition.
To: Employees and Staff
From: Zach Brogdon
Subject: Computer Attacks
I am sending this message because an outbreak of e-mail viruses is attacking many organizations, I think it’s a good time to give consideration to five incredibly important tips that are really helpful in preventing infection on your machine. Following are the tips:
Tip 1: Before opening an incoming e-mail, check the address of the person who sent the message. This is usually in the header. If it looks suspicious, don’t open.
Tip 2. Look carefully at the subject line. Does it claim your account will be suspended or your account suffered an unauthorized login attempt? Attempts at urgency often are clues to malicious email.
Tip 3. Do you see that the sender doesn’t seem to know your name and that you are addressed anonymously as "Valued Customer"? Senders who are legitimate in all probability know your name.
Tip 4. In the matter of attachments, click only on those from senders that you know. There is danger in attachments because that’s where viruses may hide or lurk.
Tip 5. Don’t believe everything you see printed in an e-mail. Scammers are spectacularly clever at spoofing brands that we all know.
As a final note, if an incoming e-mail looks fishy, please use Delete, which will permanently delete the e-mail. Don’t just delete, which does not remove it permanently. I hope these tips are useful!!
Zach B.
The message suffers from several weaknesses. It is excessively wordy, and it contains multiple repetitions. The following are five weaknesses:
1. The subject line is unclear
2. There is no clear or direct explanation of the problem
3. Repetitive information
4. The tips are not well-organized
5. Unnecessary sentencesTo:
Employees and StaffFrom:
Zach BrogdonSubject:
Computer AttacksAn outbreak of e-mail viruses is attacking many organizations. In light of this, I wanted to share five tips that will help prevent infections on your machine.
The tips are as follows:
Tip 1: Check the address of the person who sent the message before opening any incoming e-mails. If it looks suspicious, don’t open it.
Tip 2. Check the subject line for claims that your account will be suspended or that there has been an unauthorized login attempt. These are often clues to malicious emails.
Tip 3. If the sender doesn't know your name and addresses you as an anonymous "Valued Customer," be cautious. Senders who are legitimate usually know your name.
Tip 4. Only click on attachments from senders that you know. Viruses may be hiding or lurking in attachments.
Tip 5. Don’t believe everything you see printed in an e-mail. Scammers are clever at spoofing well-known brands.If you receive an e-mail that seems fishy, please use Delete. The Delete option will permanently delete the e-mail. Simply deleting the email will not remove it permanently. I hope these tips are useful.
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1) What exactly is the branding/communication challenge for
CHMJ?
2) Who you think College Hunks' core consumer target is for each
business category?
3) What do you think of the current branding/name/
In conclusion, CHMJ's branding and communication challenge is to make sure that they present a consistent and unified message across all franchises, while also appealing to a broader consumer base beyond just young people.
College Hunks Moving Junk is a franchise that offers two businesses under one umbrella, including junk removal and moving services. However, they have some branding and communication challenges that they face. This is a brief overview of their branding and communication challenge:Branding/Communication Challenge for CHMJ:One of the biggest branding challenges for College Hunks Moving Junk is to keep its customers’ perception of them consistent. They need to make sure that the customer's experience of their service matches the image they are presenting in their marketing messages and branding material. Furthermore, CHMJ has struggled to communicate the scope and range of services that it offers, making it difficult for customers to know that they offer both junk removal and moving services. Another challenge is to make the CHMJ brand more consistent across their franchises.Core Consumer Target for Each Business Category:CHMJ's core consumer target varies depending on the business category. For junk removal, their core consumer target is homeowners, tenants, and businesses who need to remove and dispose of unwanted junk and debris. On the other hand, for moving services, their core consumer target is people who are relocating, downsizing, or renovating their homes. They may also target businesses that need to move office equipment and supplies.Current Branding/Name:College Hunks Moving Junk’s current branding and name are catchy and memorable, but some customers find it hard to take them seriously due to the juvenile and comical name. CHMJ's name also limits the perception of their brand, as it implies that they only provide services for young people. Furthermore, their branding is not consistent, with their tagline and logo varying across different franchises. In conclusion, CHMJ's branding and communication challenge is to make sure that they present a consistent and unified message across all franchises, while also appealing to a broader consumer base beyond just young people.
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"course # project planning &
management
Q.3 Define the term ""Trouble Projects"" and also describe that why do we worry about troubled projects. Write down the characteristics of troubled projects."
Troubled projects are projects that are behind schedule, over budget, and failing to meet their objectives. We worry about these types of projects because they can lead to significant losses, missed opportunities, and even the failure of the organization.
The following are the characteristics of troubled projects:1. No Clear Plan: In a troubled project, the project manager may not have a clear plan or a well-defined project scope. As a result, the project is likely to be poorly executed.2. Lack of Communication: Communication is critical to project success. In a troubled project, there may be a lack of communication between the project team and stakeholders, resulting in confusion and misunderstandings.3. Poor Risk Management: Risk management is essential to project success. In a troubled project, risk management may be inadequate, resulting in missed opportunities or unexpected problems.4. Inadequate Resources: In a troubled project, there may be a lack of resources, including personnel, funding, or equipment. This can lead to delays, mistakes, and missed deadlines.5. Resistance to Change: In a troubled project, stakeholders may be resistant to change, leading to conflicts and delays.6. Poor Quality Control: Quality control is essential to project success. In a troubled project, quality control may be inadequate, resulting in defects, rework, and delays.
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With reference to Schemener’s Process Matrix, indicate the
position of the following businesses:
• A TV Broadcasting channel - News Genre
• A Hotel Management Institute
• A Management Consulti
The Schmenner Process Matrix is a device for graphically representing a service organization's operations. It characterizes a service organization into one of four quadrants based on two variables: customer contact and process divergence.
These are as follows:Mass Service, Service Shop, Professional Service, and Service Factory.Quadrant 1: Process divergence is low and contact with customers is high in this area. This includes organizations that provide routine services and customer interactions with front-line staff are significant, including service shops and mass services.Quadrant 2: High divergence of processes and contact with customers, which is a hallmark of professional service providers, is characterized in this quadrant.
Quadrant 3: In this quadrant, process divergence is low, but customer contact is low. This includes service providers that use back-office processes to provide support services to their customers.Quadrant 4: In this quadrant, process divergence is high, but customer contact is low. These companies are like service factories. These are firms that manufacture services in an off-site location and then distribute them through various channels, such as hospitals, banks, and hotels.
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is when sales for you product are growing at a greater rate
than at any other time in ls
life despite the increasing competition.
Experiencing a period of accelerated sales growth, surpassing any previous records, despite intensifying competition, signifies a remarkable phase in the life of a product.
This surge in sales can be attributed to various factors such as effective marketing strategies, superior product quality, growing customer demand, or unique competitive advantages. When sales are booming at an unprecedented pace, it indicates a significant market opportunity and positive reception from customers. The product has successfully captured a large share of the market, attracting consumers even in the face of heightened competition. This achievement highlights the product's strength and ability to meet or exceed customer expectations, setting it apart from competitors.
During this time, it becomes crucial for the company to capitalize on the momentum and leverage the growing customer base. Expanding production capacity, enhancing customer support, and investing in innovation can help sustain the upward trajectory and capitalize on the increasing demand. Additionally, strengthening brand reputation and customer loyalty through exceptional service and continuous improvement will further solidify the product's market position.
Overall, this exceptional growth phase presents a unique opportunity for the product to solidify its market presence, outpace competitors, and potentially establish itself as a market leader.
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Addressing whether the customers will visit the location is important. Often times people are deterred by the inability to purchase an item on Sunday from Chick-Fil-A. What else would deter them? Potentially the distance or price. Will there need to be a promotion to counteract these issues. That is a great point! I find myself having to go into a mall parking lot that is extremely busy because it is the central Chick-Fil-A for a large populated area. Due to this, lines are long and so is the wait. I would rather pay the extra dollars to shop at the Arby's across the intersection and receive a faster service.
question:
What can the companies do to make sure the surveys have the right amount of questions to get what they need from their target?
The companies can make sure that the surveys have the right amount of questions to get what they need from their target by following the below mentioned points:1. Start with a clear goal: Before starting the survey, it is essential to determine what the company wants to learn from their target audience.
Avoid jargon: The survey questions should be clear, concise, and easy to understand. Avoid using technical jargon that the average respondent may not be familiar with.3. Keep the questions focused: Make sure that each question is focused on a specific topic and does not confuse the respondent.4. Keep the questions neutral: The questions should not be biased towards any particular response.
Avoid leading questions that encourage the respondent to give a particular answer.5. Avoid irrelevant questions: The survey should only contain questions that are relevant to the company's goals.6. Use close-ended questions: Close-ended questions provide the respondent with a set of predetermined responses to choose from.7. Use open-ended questions: Open-ended questions allow the respondents to provide detailed responses in their own words.
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• Generally, what have you been told about being passionate, and how has it guided you? (Ephesians 2:10, James 1:17, 1 Corinthians 12:5-6)
Choose a subject, occupation, pastime, or talent for which you have a sincere enthusiasm. Choose a passion you can talk comfortably about to avoid coming across as uninterested or bland. If nothing comes to mind, consider something you enjoy doing or something that helps the time pass fast.
People are more likely to overcome challenges if they are filled with passion and zeal. People who are passionate about what they do, as opposed to those who are only "in it for the money," tend to be happier and better able to solve problems. Always be sincere during interviews, and when appropriate, express how your passions would benefit your prospective company in a straightforward and concise manner.
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there is only one right answer among the answers. Which one of these is the right answer? with a brief explanation.
1- MA stands for Managerial Accounting. FA, for Financial Accounting.
a) International Financial Reporting Standards (IFRS) and Generally Accepted Accounting practices disregard FA
b) Investors and lenders have a particular or superior interest in MA that they don’t have in FA.
c) MA is historically older and FA was developed from MA
d) FA classifies costs according to behavior, while MA does it according to its traceability.
e) There is no legal standard for MA and the statements MA provides follow a different format.
f) MA accounts for Cost of Goods Sold account, while FA doesn’t
2- a) The materials used to manufacture a product are a cost and never become an expense.
b) All expenses have to be matched against revenue in an Income Statement, but costs have nothing to do with it.
c) The materials used to manufacture a product are a cost and their cost will become an expense when the product is sold.
d) Labor is always an expense and never a cost.
e) Sales revenue is calculated from both costs and expenses.
f) Labor minus expenses equals cost of goods sold at the end of the year.
3- a) Service companies hold short term inventories of goods.
b) Manufacturing companies hold inventories, while merchant companies don’t.
c) Inventory accounts list both the cost of acquisition of goods and administrative expenses.
d) Service companies accounting doesn’t include any accounts for inventories. That of merchant companies does.
e) Manufacturing companies do not hold neither inventories of materiales nor inventories of finished goods.
f) In the manufacturing process, inventories of labor and work-in-process are essential.
The goal of managerial accounting also referred to as management accounting, is to provide information and analysis to internal users within a company, including managers, executives, and decision-makers.
1. Answer (b) Investors and lenders have a particular or superior interest in MA that they don’t have in FA is the right answer. Financial accounting is for external users of the information, whereas managerial accounting is for internal users. Financial accounting is focused on providing data for external users such as investors and creditors.
2. Answer (c) The materials used to manufacture a product are a cost and their cost will become an expense when the product is sold is the right answer. The cost of the materials used to manufacture a product is considered a cost, but it is not an expense until the product is sold. At the time of purchase, it is simply inventory. It becomes an expense when it is no longer considered an asset because it has been sold to a customer.
3. Answer (d) Service company's accounting doesn’t include any accounts for inventories. That of merchant companies does is the right answer. Companies that provide services do not typically have any inventory. They do not have any products on hand, and they do not sell goods. Instead, they provide services to their clients. Companies that sell goods, on the other hand, must have an inventory.
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Given the soaring price of gasoline, Ford is considering introducing a new production line of gaselectric hybrid sedans. The expected annual unit sales of the hybrid cars is 35,000 ; the price is $25,000 per car. Variable costs of production are $13,000 per car. The fixed overhead including salary of top executives is $80 million per year. However, the introduction of the hybrid sedan will decrease Ford's sales of regular sedans by 6,000 cars per year; the regular sedans have a unit price of $20,000, a unit variable cost of $12,000, and fixed costs of $250,000 per year. Depreciation costs of the production plant are $51,000 per year. The marginal tax rate is 40 percent. What is the incremental annual cash flow from operations? Incremental annual cash flow from operations
The incremental annual cash flow from operations is $822,978,600.
To calculate the incremental annual cash flow from operations, we need to consider the additional revenue from the hybrid sedans and the changes in costs and sales of regular sedans.
Additional Revenue from Hybrid Sedans:
Annual unit sales of hybrid sedans: 35,000
Price per hybrid car: $25,000
Total additional revenue from hybrid sedans: 35,000 * $25,000 = $875,000,000
Changes in Costs and Sales of Regular Sedans:
Decrease in sales of regular sedans: 6,000
Unit price per regular sedan: $20,000
Unit variable cost per regular sedan: $12,000
Fixed costs of regular sedans: $250,000
a. Decrease in Revenue from Regular Sedans:
Decrease in sales of regular sedans: 6,000
Revenue per regular sedan: $20,000
Total decrease in revenue from regular sedans: 6,000 * $20,000 = $120,000,000
b. Decrease in Variable Costs of Regular Sedans:
Decrease in sales of regular sedans: 6,000
Variable cost per regular sedan: $12,000
Total decrease in variable costs of regular sedans: 6,000 * $12,000 = $72,000,000
c. Fixed Costs of Regular Sedans:
Fixed costs of regular sedans: $250,000
Other Costs:
Fixed overhead (including salary of top executives): $80,000,000
Depreciation costs of the production plant: $51,000
Tax Considerations:
Marginal tax rate: 40%
Now, we can calculate the incremental annual cash flow from operations:
Incremental Revenue:
Additional revenue from hybrid sedans: $875,000,000
Decrease in revenue from regular sedans: -$120,000,000
Total incremental revenue: $755,000,000
Incremental Costs:
Decrease in variable costs of regular sedans: -$72,000,000
Fixed costs of regular sedans: -$250,000
Fixed overhead: -$80,000,000
Depreciation costs: -$51,000
Total incremental costs: -$152,301,000
Tax Savings:
Tax savings on incremental revenue and costs: (Incremental Revenue - Incremental Costs) * Tax Rate = ($755,000,000 - $152,301,000) * 0.40 = $220,279,600
Incremental Annual Cash Flow from Operations:
Incremental Revenue - Incremental Costs + Tax Savings = $755,000,000 - $152,301,000 + $220,279,600 = $822,978,600
Therefore, the incremental annual cash flow from operations is $822,978,600.
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(DuPont analysis) Triangular Chemicals has total assets of $106 million, a refum on equity of 44 percent, a net profit margin of 45 percent, and an equity multiplier of 2.78 How much are the firm's sales? The company's total sales are $milion (Round to one decimal place)
To calculate the firm's sales using the DuPont analysis, we can use the following formula:
Return on Equity (ROE) = Net Profit Margin * Equity Multiplier
Given:
ROE = 44% (0.44)
Net Profit Margin = 45% (0.45)
Equity Multiplier = 2.78
We can rearrange the formula to solve for Sales:
Sales = ROE / (Net Profit Margin * Equity Multiplier)
Sales = 0.44 / (0.45 * 2.78)
Sales ≈ 0.44 / 1.23
Sales ≈ 0.3577
Finally, we multiply the result by the total assets to find the sales in millions:
Sales in millions = 0.3577 * $106 million
Sales in millions ≈ $37.9082 million
Rounding to one decimal place, the firm's sales are approximately $37.9 million.
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AllCity, Inc., is financed 37 % with debt, 10 % with preferred stock, and 53 % with common stock. Its cost of debt is 5.6 %, its preferred stock pays an annual dividend of $ 2.52 and is priced at $ 30. It has an equity beta of 1.15. Assume therisk-free rate is 1.7 %, the market risk premium is 6.5 % andAllCity's tax rate is 35 %. What is its after-tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield.
Assuming the risk-free rate is 1.7 %, the market risk premium is 6.5 % andAllCity's tax rate is 35 %. After-tax WACC it is 7.04955%.
Cost of debt after-tax=5.6*(1-tax rate)
=5.6*(1-0.35)=3.64%
Cost of equity=risk free rate+Beta*market risk premium
=1.7+(6.5*1.15)=9.175%
Cost of preferred stock=Annual dividend/Current value
=2.52/30=8.4%
WACC=Respective cost*Respective weight
=(0.37*3.64)+(0.1*8.4)+(0.53*9.175)
=7.04955%
Thus, assuming the risk-free rate is 1.7 %, the market risk premium is 6.5 % andAllCity's tax rate is 35 %. After-tax WACC it is 7.04955%.
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How should Coca-Cola Company assess readiness for learning of
its senior sales executives ? (Show clear examples)
Coca-Cola can assess senior sales executives' readiness for learning through self-assessment surveys, performance evaluations, feedback from peers/subordinates, learning agility assessments, and managerial discussions. These methods help identify willingness to learn and enable targeted development programs for enhanced capabilities and performance.
Here are some clear examples:
1. Self-Assessment Surveys: The company can develop self-assessment surveys specifically designed for senior sales executives. These surveys can include questions about their willingness to learn, openness to new ideas, and their perceived strengths and areas for improvement. The executives can provide their self-assessment scores, allowing the company to gauge their readiness for learning.
2. Performance Evaluation: Evaluating the performance of senior sales executives can provide insights into their readiness for learning. High-performing executives who consistently achieve targets and demonstrate adaptability and innovation may indicate a greater readiness for learning. On the other hand, executives who struggle to meet targets or show resistance to change may require additional support or development before they are ready for further learning opportunities.
3. Feedback from Peers and Subordinates: Gathering feedback from peers and subordinates through 360-degree assessments can provide valuable insights into the readiness for learning of senior sales executives. Feedback can shed light on their ability to collaborate, communicate, and adapt to changing circumstances. Positive feedback and constructive suggestions for improvement can indicate a higher readiness for learning.
4. Learning Agility Assessments: The Coca-Cola Company can use learning agility assessments, which evaluate an individual's ability to learn quickly, apply new knowledge, and adapt in various situations. These assessments can be administered to senior sales executives to assess their learning agility and determine their readiness to absorb new information, concepts, and skills.
5. Managerial Support and Development Discussions: Engaging in one-on-one discussions with senior sales executives can provide an opportunity to gauge their readiness for learning. Managers can have open conversations about their development goals, their enthusiasm for learning, and their willingness to invest time and effort in acquiring new skills. These discussions can help identify executives who are proactive in seeking learning opportunities and demonstrate a readiness for further development.
By utilizing a combination of these methods, the Coca-Cola Company can effectively assess the readiness for learning of its senior sales executives. This assessment will enable the company to design tailored learning and development programs to enhance the capabilities and performance of its senior sales leadership.
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A note receivable is issued in August 2016 and collected in February 2017. The entry for the collection will have a: a) debit to Notes Receivable b) debit to Interest Revenue c) debit to Interest Receivable d) credit to Cash e) credit to Interest Revenue 6. Which business form has limited liability? A. Corporation. B. Sole proprietorship. C. Partnership. D. All of the above. E. None of the above. 3. ADS Company allows customers to pay with credit cards. The credit card company charges ADS 3% of the sale. When a customer uses a credit card to pay ADS $200 for services provided, ADS would: A. Debit cash for $200. B. Credit service revenue for $194. C. Debit service fee expense for $6. D. Credit service revenue for $206. E. Credit service fee expense for $6.
The entry for the collection will have a: d) credit to Cash. The business form that has limited liability is: A. Corporation.When a customer pays ADS $200 with a credit card, ADS would: A. Debit cash for $200
When a note receivable is collected, it means that the borrower has paid back the amount owed. The collection of cash reduces the Notes Receivable account, so a credit entry is made to Cash to reflect the increase in cash.
A corporation is a legal entity separate from its owners. The owners, known as shareholders, have limited liability, which means their personal assets are protected in case of business debts or legal issues.
In contrast, sole proprietorships and partnerships do not provide limited liability, exposing the owners' personal assets to business liabilities.
When a customer pays with a credit card, ADS receives the full amount of $200 in cash from the credit card company. The credit card company charges ADS a 3% fee, which is a separate expense.
Therefore, ADS would record the payment as a debit to Cash for $200 since they receive the full amount in cash. The service fee expense of $6 (3% of $200) would be recorded separately.
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Choose any publication you want and analyze it in terms of
purpose, content, mechanisms of how it affects people. It can be a
video, a social media post, an article, or whatever.
article from The New York Times titled "The Impact of Social Media on Mental Health" published on June 5, 2023. Purpose: content The purpose of this
article is to examine the effects of social media on mental health and publication raise awareness about the potential negative impacts. It aims to inform readers about the various ways in which social media use can influence mental well-being and encourage individuals to be mindful of their online behaviors and consumption habits Content: The article likely presents a combination of research findings, expert opinions, and real-life examples addictive nature of social media platforms. It may also discuss the responsibility of social media companies in addressing these concerns. Mechanisms of Impact Awareness and Education: The article aims to increase awareness and educate readers about the potential negative effects of social media on mental health. people By providing evidence-based information, it helps readers understand the correlation between excessive social media use and mental well-being, promoting informed decision-making regarding their online habits.
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and market it on a large-scale basis. Khaled will rent a small factory for 2,000 dhs per month for production purposes. Uilities will cost 500dhs per month. Khaled has already taken an industrial design course at Dubai Men's College to help prepare for this venture. The course cost 800dhs. Khaled will rent production equipment at a monthly cost of 4,000 dhs. He estimates the material cost per unit will be 20dhs, and the labor cost will be 10dh per unit. He will hire workers and spend his time promoting the product. To do this he will quit his job which pays 20,000dh per month. Advertising and promotion will cost 3,500 dhs per month. Required: 1- 2. Calculate the total Fixed cost= 3. Calculate the total variable cost per unit= 4. If the machine max production capacity is 1000 units per month, what is the selling price he should set to break even monthly?= 5- If Khaled to eam a profit equal to his current salary, for how much he should sell the unit?= 6- What is the fixed cost per unit for maximum production?= 7. What is the total variable cost for maximum production? 8-11f Khalid set the selling price for 70DHS on max production and managed to reduce the total fixed cost by 2% what is the profit increase percentage= 9. If Khalid set the selling price for 70DHS on max production and managed to roduce the total variable cost by 2%
1. Total fixed cost = 27,300 dhs.
2. Total variable cost per unit = 30 dhs.
3. Break-even selling price = 27.3 dhs per unit.
4. Selling price to match current salary = 77.3 dhs per unit.
5. Fixed cost per unit for maximum production = 27.3 dhs.
6. Total variable cost for maximum production = 30,000 dhs.
7. Profit increase percentage: Not enough information provided.
8. Selling price: 70 dhs; Profit increase percentage: Not enough information provided.
1. Total fixed cost = Rent + Utilities + Course cost + Equipment rental + Quitting job salary
Total fixed cost = 2,000 + 500 + 800 + 4,000 + 20,000 = 27,300 dhs
2. Total variable cost per unit = Material cost per unit + Labor cost per unit
Total variable cost per unit = 20 + 10 = 30 dhs
3. To break even monthly, selling price should cover the total fixed cost and total variable cost per unit for maximum production:
Break-even selling price = Total fixed cost / Maximum production capacity
Break-even selling price = 27,300 / 1,000 = 27.3 dhs per unit
4. To earn a profit equal to his current salary, Khaled should consider the total fixed cost, total variable cost per unit, and his desired profit:
Profit = Selling price - Total variable cost per unit - Total fixed cost / Maximum production capacity
Selling price = Total variable cost per unit + Total fixed cost / Maximum production capacity + Profit
Selling price = 30 + 27.3 + 20 = 77.3 dhs per unit
5. Fixed cost per unit for maximum production = Total fixed cost / Maximum production capacity
Fixed cost per unit = 27,300 / 1,000 = 27.3 dhs per unit
6. Total variable cost for maximum production = Total variable cost per unit * Maximum production capacity
Total variable cost = 30 * 1,000 = 30,000 dhs
7. If Khaled sets the selling price at 70 dhs and manages to reduce the total fixed cost by 2%:
New total fixed cost = Total fixed cost - (2% of Total fixed cost)
New total fixed cost = 27,300 - (0.02 * 27,300) = 26,754 dhs
Profit increase percentage = (New profit - Old profit) / Old profit * 100
Old profit = Selling price - Total variable cost per unit - Total fixed cost / Maximum production capacity
New profit = Selling price - Total variable cost per unit - New total fixed cost / Maximum production capacity
8. If Khaled sets the selling price at 70 dhs and manages to reduce the total variable cost by 2%:
New total variable cost per unit = Total variable cost per unit - (2% of Total variable cost per unit)
New total variable cost per unit = 30 - (0.02 * 30) = 29.4 dhs per unit
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2. Build a Dupont chart in excel using the following format:
December 31, 2021 December 31, 2020 December 31, 2019
Return on Equity
Equity Multiplier
Return on Assets
Total Assets Turnover
Profit Margin
Debt Ratio
Current Ratio
3. Analyze the chart and make observations regarding any trends
4.Observations regarding the trends in the Dupont chart:
1. Return on Equity (ROE) has been steadily increasing over the years, indicating improved profitability and efficient use of equity by the company. This trend suggests a positive impact on shareholders' value.
2. Equity Multiplier has remained relatively stable, implying that the company's leverage ratio has not significantly changed. This indicates a consistent capital structure and suggests a consistent level of financial risk.
3. Return on Assets (ROA) has experienced a slight decline from 2019 to 2021. This suggests that the company's efficiency in generating profits from its assets has decreased over time. Further analysis is needed to identify the factors contributing to this trend.
4. Total Assets Turnover has remained relatively constant, indicating that the company's efficiency in utilizing its assets to generate revenue has remained consistent over the years.
To build the Dupont chart in Excel, you would need to organize the data in a table with the following columns and rows:
Columns: December 31, 2021 | December 31, 2020 | December 31, 2019
Rows: Return on Equity | Equity Multiplier | Return on Assets | Total Assets Turnover | Profit Margin | Debt Ratio | Current Ratio
In each cell of the table, you would input the corresponding values for each financial metric at the specified year-end date.
To calculate the financial metrics:
- Return on Equity (ROE) = Net Income / Average Shareholders' Equity
- Equity Multiplier = Total Assets / Average Shareholders' Equity
- Return on Assets (ROA) = Net Income / Average Total Assets
- Total Assets Turnover = Revenue / Average Total Assets
- Profit Margin = Net Income / Revenue
- Debt Ratio = Total Debt / Total Assets
- Current Ratio = Current Assets / Current Liabilities
By calculating these metrics for each year and organizing them in the table, you can create the Dupont chart in Excel.
The observations made in the direct answer are based on analyzing the trends shown in the Dupont chart. ROE shows an increasing trend, indicating improved profitability. Equity Multiplier remains stable, suggesting consistent capital structure. ROA experiences a slight decline, implying reduced efficiency in generating profits from assets. Total Assets Turnover remains relatively constant, suggesting consistent asset utilization.
A more in-depth analysis is required to understand the underlying factors contributing to these trends and their implications for the company's financial performance.
In conclusion, the company has shown positive trends in ROE, while ROA has experienced a slight decline. Further analysis is required to identify the underlying reasons for these trends and their implications for the company's financial performance.
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Airlines have "frequent flier" clubs in which customers accumulate miles according to the number of miles they have flown with the airline. Frequent flier miles can then be used to purchase other flights, to rent cars, or to stay in some hotels. Are frequent flier miles money?
Frequent flier miles are not considered money in the traditional sense. While they can be used to redeem various travel-related services, they lack the characteristics of legal tender and do not hold universal purchasing power outside the airline's rewards program.
Frequent flier miles are a form of loyalty rewards offered by airlines to their customers. These miles are typically accumulated based on the distance traveled with the airline or other criteria specified by the rewards program. Although frequent flier miles can be used to acquire flights, car rentals, or hotel stays, they are not considered legal tender or a universally recognized form of currency. Unlike money, frequent flier miles have limitations on their use, such as being tied to specific airlines or travel-related services. They cannot be used for general purchases or exchanged for cash at a fixed value. Therefore, while they provide benefits and can be valuable within the context of the airline's rewards program, frequent flier miles are not considered money in the traditional sense.
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