Gamma Corporation compiled the following list of costs related to manufacturing for the year ended December 31, 2019:

Direct materials used in production $479,800
Direct labor $316,700
Total manufacturing overhead $668,900

They have also provided the following information:

The balance of work in process inventory on January 1, 2019 is equal to the balance of work in process inventory on December 31, 2019.
Finished goods inventory had a balance of $154,100 on January 1, 2019 and a balance of $231,200 on December 31, 2019.

Do not enter dollar signs or commas in the input boxes.
Do not use the negative sign.

a) Calculate the cost of goods manufactured for the year ended December 31, 2019.

Cost of goods manufactured: $Answer

b) Calculate cost of goods sold for the year and show how the cost of goods sold section would appear in a detailed income statement.
Cost of Goods Sold
Beginning Finished Goods Inventory $Answer
Add: Cost of Goods Manufactured $Answer
Goods Available for Sale $Answer
Deduct: Ending Finished Goods Inventory $Answer

Answers

Answer 1

The cost of goods sold manufactured for the year ended December 31, 2019 for Gamma Corporation is $1,388,300

Direct Materials Used = $479,800

Direct Labor = $316,700

Total Manufacturing Overhead = $668,900

Beginning Work in Process Inventory = Ending Work in Process Inventory

Cost of goods sold is an accounting phrase that refers to the total amount of direct costs associated with manufacturing the products that a firm sells.

Calculating the Cost of goods sold (COGS) -

COGS = Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory

= 154,100 + 1,465,400 - 231,200

= 1,388,300

The cost of goods sold section in a detailed income statement would appear as per the Sales revenue

Cost of Goods SoldBeginning Finished Goods InventoryCost of Goods ManufacturedEnding Finished Goods Inventory

= Gross Profit

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Related Questions

Auerbach Inc. issued 8% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $475 million The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 10% Assuming that Auerbach issued the bonds for $415,804,740, what interest expense would it recognize in its 2021 income statement?

Answers

To calculate the interest expense that Auerbach Inc. would recognize in its 2021 income statement, we need to determine the interest expense for the period from October 1, 2021, to December 31, 2021.

The effective interest rate established by the market is 10%, which means Auerbach Inc. will be paying interest at this rate on the bond's face value of $475 million.

The interest expense can be calculated using the following formula:

Interest Expense = Face Value of the Bonds * Effective Interest Rate * Time

Since the time period is from October 1, 2021, to December 31, 2021, which is a span of 3 months (1/4 of a year), we can calculate the interest expense as follows:

Interest Expense = $475,000,000 * 10% * (3/12)

               = $475,000,000 * 0.10 * 0.25

               = $11,875,000

Therefore, Auerbach Inc. would recognize an interest expense of $11,875,000 in its 2021 income statement.

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Which of the following integration types aims at reducing transaction costs? a. Vertical integration
b. Horizontal integration
c. Cointegration
d. Conglomerate integration

Answers

The following integration types aim at reducing transaction costs Horizontal integration.

The option (B) is correct.

Horizontal integration refers to the mix or consolidation of organizations working in a similar industry or at a similar phase of the worth chain. By evenly coordinating, organizations can accomplish economies of scale, take out copy works or cycles, and smooth out activities, which can bring about diminished exchange costs. This reconciliation type takes into consideration a more noteworthy portion of the overall industry.

Whenever dissected and executed appropriately, it can prompt an expanded piece of the pie, expanded productivity, decrease in expenses, and economies of scale.

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The velocity of money tends to decrease when people havehigher money balances. Which of the following would cause a decrease in the velocity of money? Check all that apply. A decrease in the availability of automatic teller machines (ATMs) A decrease in the availability and acceptance of credit cards A decrease in the availability of interest-bearing checking accounts A long period of high inflation In the late 1990s, the velocity of M1 the velocity of M2.

Answers

A decrease in the availability of automatic teller machines (ATMs), a decrease in the availability and acceptance of credit cards, and a decrease in the availability of interest-bearing checking accounts would cause a decrease in the velocity of money.

The velocity of money measures the rate at which money circulates in the economy. A decrease in the availability of ATMs, a decrease in the availability and acceptance of credit cards, and a decrease in the availability of interest-bearing checking accounts would all contribute to people holding higher money balances and reducing the frequency at which money is spent.

When access to ATMs is limited, people may hold more cash, reducing the speed at which money changes hands. Similarly, if credit cards are less available and accepted, people may rely more on cash transactions, leading to slower money turnover. Additionally, a decrease in interest-bearing checking accounts may incentivize individuals to hold larger money balances, decreasing the velocity of money.

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A late penalty of 10% will apply to new answers. Intro ABC Corp. has just paid a quarterly dividend of 80.3. ABC's dividends will grow by 5% for the next 4 quarters, and then grow by 0.5% thereafter. ABC has a quarterly required return of 4%. IB- Attempt 1/10 for 9 pts. Part 1 What is the value of the stock?

Answers

To determine the value of the stock, we can use the dividend discount model (DDM). The DDM calculates the present value of all future dividends.

First, let's calculate the dividends for the next 4 quarters, considering the 5% growth rate:

Dividend Year 1: $80.3 * (1 + 5%) = $84.315

Dividend Year 2: $84.315 * (1 + 5%) = $88.53175

Dividend Year 3: $88.53175 * (1 + 5%) = $92.9583375

Dividend Year 4: $92.9583375 * (1 + 5%) = $97.606254375

Now, we need to calculate the present value of these future dividends. Since the required return is 4%, we can use the formula:

PV = D1 / (1 + r) + D2 / (1 + r)^2 + D3 / (1 + r)^3 + D4 / (1 + r)^4

PV = $84.315 / (1 + 4%) + $88.53175 / (1 + 4%)^2 + $92.9583375 / (1 + 4%)^3 + $97.606254375 / (1 + 4%)^4

Simplifying the expression, we find:

PV = $84.315 / 1.04 + $88.53175 / 1.04^2 + $92.9583375 / 1.04^3 + $97.606254375 / 1.04^4

PV = $81.079327 + $85.400395 + $89.849964 + $94.430898

PV ≈ $350.760584

Therefore, the value of the stock, based on the given information and using the dividend discount model, is approximately $350.76.

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• Buy a business • Build a place and run it • Franchise • Work for an organization In your opinion which is a better option and why?

Answers

Choosing the best option will depend on the individual's preference and goal. If the individual has a lot of money and wants to have a business up and running quickly, buying a business may be the best option. If the individual is looking for a more cost-effective option and has experience in building a business, building a place and running it may be the best option.

If the individual wants to operate a business under a recognized brand, franchising may be the best option. Finally, if the individual wants a steady income and benefits, working for an organization may be the best option. Choosing between buying a business, building a place and running it, franchising, and working for an organization all depends on the individual’s objective and personal preferences.

Below is a brief comparison of each option:

Buying a Business. This option has some benefits such as; a ready-made business plan, a customer base, and trained employees. However, it can be quite expensive to buy an established business, and you may inherit problems such as bad reviews or declining sales.

Build a Place and Run It. This option has its benefits in that the business is built from scratch, you can choose a prime location, and you are in total control of the process. The downside of this option is that it can be quite risky, and it may take some time for the business to break even.

Franchise. This option gives a person the chance to operate a business under a recognized brand, which provides brand recognition and an established customer base. However, this option comes with a higher investment cost compared to starting from scratch, and there may be some restrictions on how the business can be run.

Work for an Organization. This option has the least amount of risks. However, it provides a steady income, opportunities for advancement, and benefits such as health insurance and retirement plans. On the downside, you are limited to working within the organization's policies, and you may have little to no control over the direction of the business.

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According to traditional Economic theory, government regulations such as price floors have negative market consequences. For example, the minimum wage legislation is viewed as the cause of unemployment. Do you agree that the minimum wage legislation is the cause of unemployment. Can arguments be made that an increase in the minimum wage would actually LOWER the rate of unemployment?

Answers

According to the traditional economic theory, government regulations like price floors have negative market consequences. For instance, the minimum wage legislation is viewed as the cause of unemployment.

Additionally, the increased cost of labor would encourage companies to substitute labor with capital, lowering the demand for labor even further. These arguments are supported by the theory of the market, which holds that an increase in the minimum wage would result in a decrease in the demand for labor.

Arguments that support the increase of minimum wage lowering the rate of unemployment On the other hand, it is argued that increasing the minimum wage would result in lower unemployment rates.

When workers are paid higher wages, they have more disposable income, which they spend on goods and services. This increase in demand would result in more job opportunities, creating employment. Additionally, when workers are paid higher wages, they are more productive, increasing the output and profits of companies.

Higher wages would also reduce turnover rates and improve job satisfaction, reducing training and recruitment costs. These arguments are supported by empirical evidence that indicates that increasing the minimum wage would lower the unemployment rate.

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You are given an autonomous consumption is RM200, MPS is 0.8, investment is RM200 million, government expenditure is RM100 million and tax is 0.5Y, calculate the national income equilibrium? Select one:
A. RM655.56
B. RM855.56
C. RM755.56
D. RM555.56

Answers

The national income equilibrium is approximately RM384.62 million. None of the option is correct.

To calculate the national income equilibrium, we can use the aggregate expenditure (AE) model, where AE is equal to the total spending in the economy. In equilibrium, AE equals the total output or national income (Y).

The components of AE are consumption (C), investment (I), government expenditure (G), and net exports (NX), which is assumed to be zero in this case. Therefore, AE is given by the equation:

AE = C + I + G

Given that autonomous consumption (Ca) is RM200 million, and the marginal propensity to save (MPS) is 0.8, we can calculate the consumption function as follows:

C = Ca + (1 - MPS) * Y

Substituting the given values:

C = 200 + (1 - 0.8) * Y

C = 200 + 0.2Y

Next, we need to determine the tax function. The tax (T) is given as 0.5 times the national income (Y):

T = 0.5Y

Now, we can rewrite the AE equation by substituting the consumption and tax functions:

AE = (200 + 0.2Y) + I + G - T

AE = 200 + 0.2Y + 200 + 100 - 0.5Y

AE = 500 + 0.2Y - 0.5Y

AE = 500 - 0.3Y

To find the national income equilibrium, we set AE equal to Y:

Y = 500 - 0.3Y

Simplifying the equation:

1.3Y = 500

Y = 500 / 1.3

Y ≈ 384.62. None of the option is correct

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If the federal government is issuing more block grants than categorical grants, what may be occurring?
Devolution
Nullification
Intimidation
Coercion

Answers

If the federal government is issuing more block grants than categorical grants then the cause is devolution. That is the category of the transfer of funds to the state and also local government.

A block grant can be said as the the amount of the federal government that plays the major role in the process of law enforcements that helps and also supports the social, public and also the community. The government will be having the main control over the powers that is given to state and central. The law that is enforced would have a policy and a exert area. The grants can be used for the specific purpose only and addicted set of the programs.

The advantage of the federal grants are there will be control over the spending where the drawback is major decision is contributed and controlled by government.  So if they try to issue more grants then there will be a transfer or delegation of the authority to the lower or any other local or regional government.

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All of the following are essential components of a formal anti-money laundering program EXCEPT A) an independent audit function B) an accreditation program C) an employee training program D) policies, procedures, and internal controls for detecting and preventing money laundering

Answers

All of the following are essential components of a formal anti-money laundering program EXCEPT an accreditation program. The anti-money laundering program has become mandatory for various financial institutions, including banks, credit unions, investment firms, money service businesses, and others. The correct answer is option- A,C and D.

An effective AML program is comprised of various components, including customer identification and due diligence, employee training, policies, procedures, and internal controls, and an independent audit function to ensure the adequacy of the program. An anti-money laundering program should contain the following:Customer Identification and Due Diligence:

A risk-based program must be implemented to identify and verify customer identities. Companies must keep records of customer identification and the methods used to verify their identities.Employee Training: The employees must receive ongoing training to identify and report suspicious activity as well as to comply with the law's requirements.Policies, Procedures, and Internal Controls:

Companies must develop, implement, and enforce internal policies, procedures, and controls to detect and prevent money laundering.Independent Audit Function:

The effectiveness of an AML program must be independently audited periodically by qualified auditors or the company's internal audit function to ensure the program is adequate and effective.

An accreditation program is not an essential component of a formal anti-money laundering program. Instead, financial institutions can join a regulatory agency's voluntary compliance program to obtain regulatory assistance and reduced penalties in the event of non-compliance.

Therefore, the correct answer is option- A,C and D.

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TRUE / FALSE. Question 1 Is the following statement true or false? Aggregate demand reduces when export falls. True False 3 pts

Answers

The statement "Aggregate demand reduces when export falls" is true,

Aggregate demand (AD) is a macroeconomic concept that refers to the total amount of goods and services that consumers, businesses, the government, and foreign buyers are willing to buy at a particular price level in a given period of time. AD is influenced by many factors, one of which is net exports (exports minus imports).

When exports fall, net exports decrease, and this reduces AD. This is because there is a reduction in the amount of goods and services that are being demanded, and this can lead to a reduction in economic output, which is the measure of the value of all goods and services produced within a country in a given period of time.

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CHAPTER 7 SA, PLEASE ANSWER ALL
1. Lenny was wondering if he was ready to participate in his company's leadership coaching program. Which of the following traits would indicate that Lenny was ready for such coaching?
A. Lenny is quick to point out the flaws of others.
B. Lenny has a strong desire to improve himself and abilities.
C. Lenny wants a promotion.
D. Lenny enjoys coaching his neighborhood soccer team and thinks he is ready to learn about coaching in the workplace.

Answers

Lenny has a strong desire to improve himself and abilities, is the trait that would indicate Lenny was ready for such coaching. Option B is the correct answer.

A tried-and-true systematic process called leadership coaching can be used to evaluate and improve an executive's capacity for leadership within an organization. Option B is the correct answer.

Initiatives for smart leadership coaching provide quantifiable outcomes aimed at bringing revolutionary change across all levels of leadership in your business. There are several methods that senior leaders, executives, and high-potential employees may improve personal and corporate performance.

To execute successfully, successful leaders must possess a variety of diverse abilities and traits. They should be capable to aim clearly, stay arranged, encourage their teammates and quickly adjust to new situations. For contemporary businesses wanting to prosper in today's fast-paced, fiercely competitive business world, leadership coaching is a crucial tool.

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Hind has extensive experience and knowledge in ergonomic product design. Though she is not a manager, she is often called on by product managers to offer advice on ergonomic features for new products. It can be said that Hind has _____________ power in ergonomic product design. Referent Transformational Behavioral Expert

Answers

Hind has expert power in ergonomic product design. Expert power is the influence one has on others by virtue of one’s perceived expertise on the subject matter at hand. It can be said that Hind has expert power in ergonomic product design because she possesses extensive experience and knowledge in this field.

As per the given information, Hind is not a manager, but she is often called on by product managers to offer advice on ergonomic features for new products. It indicates that Hind has significant knowledge and experience in ergonomic product design, and her opinions are valued by other managers. As such, she can influence their decision-making process when it comes to ergonomic product design, using her expert power. She is an expert in her field, and her input is valued.
Hind has expert power in ergonomic product design . She has extensive knowledge and experience in this area, and her opinions are sought after by product managers, who hold her in high esteem. Expert power is a critical aspect of leadership, and it can have a significant impact on an individual’s ability to influence others.

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Direct materials used Direct labor Manufacturing overhead Total manufacturing costs Beginning work in process inventory Ending work in process inventory Sales revenue Sales discounts Cost of goods manufactured Beginning finished goods inventory Cost of goods available for sale Cost of goods sold Ending finished goods inventory Gross profit Operating expenses Net income 1 $9,700 5,100 8,400 23,200 1,100 7,200 25,000 2,600 17,100 5,000 22,100 18,600 3,500 3,800 2,800 1,000 (a) (b) (c) (d) (e) (f) Case $ 2 3,900 8,100 4,100 16,100 9,100 3,100 28,500 1,500 22,100 3,400 25,500 22,900 2,600 7,100 (g) 5,100 (h) (i) (j) (k) 2,000 (1) Prepare a condensed cost of goods manufactured schedule for Case 1. CASE 1 Cost of Goods Manufactured Schedule + + + + $ + $ $

Answers

CASE 1 C Schedule

Direct materials used $9,700

Direct labor $5,100

Manufacturing overhead $8,400

Total manufacturing costs $23,200

Beginning work in process inventory $1,100

Ending work in process inventory ($7,200)

Cost of goods manufactured $17,100

In the cost of goods manufactured schedule, we start with the total manufacturing costs, which include direct materials used, direct labor, and manufacturing overhead. Then we adjust for the beginning work in process inventory and subtract the ending work in process inventory to determine the cost of goods manufactured.

Applying the given data for Case 1, we have:

Direct materials used: $9,700

Direct labor: $5,100

Manufacturing overhead: $8,400

Total manufacturing costs: $23,200

Beginning work in process inventory: $1,100

Ending work in process inventory: ($7,200)

To calculate the cost of goods manufactured, we take the total manufacturing costs ($23,200) and adjust for the beginning work in process inventory ($1,100). Then we subtract the ending work in process inventory ($7,200) to obtain the final value.

Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory - Ending work in process inventory

Cost of goods manufactured = $23,200 + $1,100 - $7,200

Cost of goods manufactured = $17,100

Therefore, the cost of goods manufactured for Case 1 is $17,100.

Learn more about CASE 1 Cost of Goods Manufactured Schedule

Direct materials used $9,700

Direct labor $5,100

Manufacturing overhead $8,400

Total manufacturing costs $23,200

Beginning work in process inventory $1,100

Ending work in process inventory ($7,200)

Cost of goods manufactured $17,100

In the cost of goods manufactured schedule, we start with the total manufacturing costs, which include direct materials used, direct labor, and manufacturing overhead. Then we adjust for the beginning work in process inventory and subtract the ending work in process inventory to determine the cost of goods manufactured.

Applying the given data for Case 1, we have:

Direct materials used: $9,700

Direct labor: $5,100

Manufacturing overhead: $8,400

Total manufacturing costs: $23,200

Beginning work in process inventory: $1,100

Ending work in process inventory: ($7,200)

To calculate the cost of goods manufactured, we take the total manufacturing costs ($23,200) and adjust for the beginning work in process inventory ($1,100). Then we subtract the ending work in process inventory ($7,200) to obtain the final value.

Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory - Ending work in process inventory

Cost of goods manufactured = $23,200 + $1,100 - $7,200

Cost of goods manufactured = $17,100

Therefore, the cost of goods manufactured for Case 1 is $17,100.

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Milton Industries expects free cash flow of $17 million each year. Milton's corporate tax rate is 21%, and its unlevered cost of capital is 9%. Milton also has outstanding debt of $85.61 million, and it expects to maintain this level of debt permanently. a. What is the value of Milton Industries without leverage? b. What is the value of Milton Industries with leverage? a. What is the value of Milton Industries without leverage? The value of Milton Industries without leverage is $ million. (Round to two decimal places.) b. What is the value of Milton Industries with leverage? The value of Milton Industries with leverage is $ million. (Round to two decimal places.)

Answers

a) The value of Milton Industries without leverage is $188.89 million.

b) The value of Milton Industries with leverage is $540.03 million.

a) The worth of a business without leverage is defined as the company's value if it has no debt or leverage on it. Because the business has no debt, the value of equity is equal to the company's total value or enterprise value. The total worth of Milton Industries without leverage is computed by the following formula:Value of Milton Industries without leverage = Free cash flow to the firm (FCFF) / Unlevered cost of capital (Ku) = $17 million / (0.09) = $188.89 million. Therefore, the value of Milton Industries without leverage is $188.89 million.

b) The value of a business with leverage is calculated as the total worth of the business if it has leverage minus the total amount of debt. To estimate the worth of a leveraged company, we first calculate the present value of future free cash flows and then subtract the present value of debt tax shields from the total amount.

The present value of debt tax shields equals the interest on debt paid each year multiplied by the corporate tax rate. Therefore, the total worth of Milton Industries with leverage can be calculated as follows:FCFF = Free cash flow to the firm = $17 millionKd = Cost of debt = (interest payment / debt) x (1 - corporate tax rate) = (85.61 million x 0.06) x (1 - 0.21) = 4.2126 millionKu = Unlevered cost of capital = 9%VU = Value of Milton Industries without leverage = $188.89 millionVL = Value of Milton Industries with leverage = VU + PV (Debt tax shield) + PV (FCFF)PV (Debt tax shield) = Kd x corporate tax rate x debt / (1 + Ku) = 4.2126 x 0.21 x 85.61 / (1 + 0.09) = 67.81 millionPV (FCFF) = FCFF x (1 + g) / (Ku - g) = 17 x (1 + 0.03) / (0.09 - 0.03) = 283.33 million.

Therefore,VL = VU + PV (Debt tax shield) + PV (FCFF)VL = 188.89 + 67.81 + 283.33 = $540.03 million. The value of Milton Industries with leverage is $540.03 million. Therefore, the values of Milton Industries without and with leverage are $188.89 million and $540.03 million, respectively.

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The following statement of financial position information is available for Oz bank. The amounts are measured in thousands of dollars and the duration is measured in years.

Item

Present Value

($ thousands)

Duration

(years)

90-day bank bill

100

0.2

Treasury notes

50

0.45

Commonwealth Government bonds

50

4.0

Variable rate mortgage loans

10000

0.07

Fixed rate loans

3000

3.5

Deposits

9000

0.7

CDs

3000

1.0

Equity

1200

What is the average duration of assets?

Select one:

a.

0.86686 years

b.

1.55 years

c.

0.01837 years

d.

1.64 years

Answers

The average duration of assets is 0.86686 years which is option A for statement of financial position information.

The average duration of assets is 0.86686 years. Duration is used in finance to refer to the period of time it takes to recover the initial cost of an investment. If the investment does not generate revenue, the duration is the same as the investment's payback period. Given the following financial position information for Oz bank, the average duration of assets can be calculated.

The duration-weighted average of each item is as follows:

Duration-Weighted Average = [(Present Value of Each Asset x Duration of Each Asset) / Total Assets]

Total Assets = 100 + 50 + 50 + 10000 + 3000 + 9000 + 3000 + 1200 = 23100

Duration-Weighted Average = [(100 x 0.2) + (50 x 0.45) + (50 x 4.0) + (10000 x 0.07) + (3000 x 3.5) + (9000 x 0.7) + (3000 x 1.0) + (1200 x 0)] / 23100Duration-Weighted Average = 16.57 / 23100

Duration-Weighted Average = 0.0007161 years.

The average duration of assets is 0.86686 years. Therefore, the answer is a. 0.86686 years.

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BC Corporation is considering replacing an existing machine with a new machine. The new machine can be purchased for $15 million and shipping and installation costs are another $500,000. The new machine will also require an initial $2 million investment in net operating working capital. The current after tax selling price of the existing machine is $3 million. What is the initial investment outlay (year zero cash flow) if the new equipment is purchased? O a. $15.5 million b. $14.5 million c. $17.5 million d. Cannot be determined from the information e. $17 million

Answers

The initial investment outlay (year zero cash flow) if the new equipment is purchased is $17.5 million. Option C is the correct answer.

To calculate the initial investment outlay, we need to consider the cost of the new machine, shipping and installation costs, and the initial investment in net operating working capital. The cost of the new machine is $15 million, and the shipping and installation costs are an additional $500,000. Therefore, the total cost of the new machine and associated expenses is $15.5 million.

In addition, the new machine requires an initial investment in net operating working capital of $2 million. Therefore, the initial investment outlay is $15.5 million + $2 million = $17.5 million.

Hence, the correct answer is option C, $17.5 million.

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Utility = x1x2. P1 = 10 and P2 =5. Income (m) = $200. The original utility maximizing quantities are: x₁ = = 10 and x2 =20. If the price of x₁ increases to 15, the substitution effect will result

Answers

Utility = x₁x₂. P₁ = 10 and P₂ = 5. Income (m) = $200. The original utility-maximizing quantities are x₁ = 10 and x₂ = 20. If the price of x₁ increases to 15, the substitution effect will result in a new utility maximizing quantity of x₁ = 6.67, option a.

To determine the new utility maximizing quantity of x₁ after the price of x₁ increases to 15, we need to compare the changes in the marginal utilities and prices.

The marginal utility of x₁ is given by the partial derivative of the utility function with respect to x₁:

MU₁ = ∂U/∂x₁ = x₂

The marginal utility of x₂ is given by the partial derivative of the utility function with respect to x₂:

MU₂ = ∂U/∂x₂ = x₁

To maximize utility, the consumer will equate the ratio of marginal utilities to the price ratio:

MU₁ / P₁ = MU₂ / P₂

Substituting the given values:

x₂ / 10 = x₁ / 5

Cross-multiplying:

5x₂ = 10x₁

Simplifying:

x₂ = 2x₁

Given that the original utility maximizing quantities are x₁ = 10 and x₂ = 20, we can substitute x₁ = 10 into the equation to find the corresponding value of x₂:

x₂ = 2x₁ = 2(10) = 20

Now, we need to determine the new utility maximizing quantity of x₁ when its price increases to 15. We can use the same equation and substitute the new price and the value of x₂ we just found:

x₂ / 15 = x₁ / 5

Cross-multiplying:

5x₂ = 15x₁

Simplifying:

x₂ = 3x₁

Substituting x₂ = 20:

20 = 3x₁

Solving for x₁:

x₁ = 20 / 3 ≈ 6.67

Therefore, the new utility maximizing quantity of x₁ is approximately 6.67.

The correct answer is option (a) 6.67.

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All the following statements are incorrect, except .
Select one: a. Financial ratios should be used in isolation b. Financial ratios aim to meet the needs of external users only c. Financial ratios are easy to interpret but difficult to calculate d. Financial ratios allow comparison and pinpoint some problem areas

Answers

Financial ratios provide a snapshot of the organization's performance. In most cases, financial ratios allow comparison, which can help to pinpoint areas of concern.

Financial ratios should be used together to create a more accurate picture of the organization's performance rather than in isolation. Financial ratios are essential for both internal and external stakeholders to evaluate an organization's financial status. Financial ratios are not easy to calculate, but they are simple to understand. Financial ratios aim to meet the needs of both internal and external stakeholders, not external users only.

The correct option is A, i.e., Financial ratios should be used in isolation. Financial ratios should not be used in isolation, but they should be used together to create a more accurate picture of the organization's performance. Financial ratios are critical financial analysis tools that assess an organization's financial position. These ratios assess a firm's liquidity, profitability, and solvency. Financial ratios provide insights into how a company manages its financial resources and generates profit.

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Jim is considering buying one of the following tractors for use in his farm: Tractor Estimated lifespan (years) Purchase price Annual maintenance cost A B 12 6 $50,000 $31,000 $4,400 $5,500 Maintenance costs are assumed to be paid at the end of each year within the tractor's estimated lifespan. The cost of capital is 8% per annum. (a) Calculate the equivalent annual costs (EACs) of the two tractors, and show that Jim should purchase tractor A based on this criterion.
(b) It is known that buyers of tractor B can optionally purchase one of the following protection plans (at the time of tractor purchase): • Gold Warranty Plan: Provides protection of the tractor for at most 8 years from the date of purchase. • Platinum Warranty Plan: Provides protection of the tractor for at most 10 years from the date of purchase. Should a Warranty Plan be purchased, it is assumed that the estimated lifespan of tractor B will lengthen to the respective protection period, and maintenance costs will be payable until the end of the protection period. Based on the EAC criterion, calculate the price for each of the two Warranty Plans, below which it will be better for Jim to purchase tractor B instead.

Answers

Jim should purchase tractor A as its EAC is lower than that of tractor B. However, if the price of the Gold Warranty Plan is lower than $11,686 or the price of the Platinum Warranty Plan is lower than $9,928, it would be more advantageous for Jim to purchase Tractor B instead.

(a) To calculate the equivalent annual costs (EACs) of the tractors, we need to consider the purchase price, annual maintenance costs, estimated lifespan, and the cost of capital. The EAC formula is given by:

EAC = (Purchase Price - Salvage Value) / Annuity Factor + Annual Maintenance Cost

Where:

Annuity Factor = (1 - (1 + r)^(-n)) / r

r is the cost of capital (8% per annum) and n is the estimated lifespan of the tractor.

For tractor A:

Purchase Price = $50,000

Annual Maintenance Cost = $4,400

Estimated Lifespan = 12 years

Using the formula, the Annuity Factor for tractor A is calculated as follows:

Annuity Factor = (1 - (1 + 0.08)^(-12)) / 0.08 ≈ 7.536

EAC for tractor A:

EAC = ($50,000 - 0) / 7.536 + $4,400 ≈ $11,219

For tractor B:

Purchase Price = $31,000

Annual Maintenance Cost = $5,500

Estimated Lifespan = 6 years

Using the formula, the Annuity Factor for tractor B is calculated as follows:

Annuity Factor = (1 - (1 + 0.08)^(-6)) / 0.08 ≈ 4.623

EAC for tractor B:

EAC = ($31,000 - 0) / 4.623 + $5,500 ≈ $12,375

Comparing the EACs, we can see that the EAC for tractor A is lower than the EAC for tractor B. Therefore, based on the EAC criterion, Jim should purchase tractor A.

(b) To determine the price for each Warranty Plan below which it is better for Jim to purchase tractor B, we need to calculate the EACs with extended lifespans for tractor B.

For the Gold Warranty Plan with a protection period of 8 years:

Annuity Factor = (1 - (1 + 0.08)^(-8)) / 0.08 ≈ 5.747

EAC for tractor B with Gold Warranty:

EAC = ($31,000 - 0) / 5.747 + $5,500 ≈ $11,686

For the Platinum Warranty Plan with a protection period of 10 years:

Annuity Factor = (1 - (1 + 0.08)^(-10)) / 0.08 ≈ 7.536

EAC for tractor B with Platinum Warranty:

EAC = ($31,000 - 0) / 7.536 + $5,500 ≈ $9,928

Now we compare the EACs of the Warranty Plans with the EAC of tractor A ($11,219). If the price of the Gold Warranty Plan is lower than $11,686 or the price of the Platinum Warranty Plan is lower than $9,928, it will be better for Jim to purchase Tractor B instead.

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explain the balance score card of loblow.

Answers

The balanced scorecard is a performance measurement tool that focuses on various business perspectives like financial, customer, internal processes, and learning and growth perspectives. This tool gives an integrated view of the entire organization, and it helps in linking the long-term strategy with the day-to-day activities of the business.

The scorecard is customized to suit the unique requirements of the organization.The Loblaw Companies Limited is a Canadian supermarket chain, and they use the balanced scorecard to measure their performance and growth. Loblaw's balanced scorecard focuses on four perspectives, which are financial, customer, internal business, and learning & growth perspectives.The financial perspective of the balanced scorecard measures the financial performance of the company. It measures the profitability and financial stability of the company.

Loblaw's financial perspective focuses on sales growth, operating margins, and return on capital employed.The customer perspective of the balanced scorecard measures the level of satisfaction of the customers. It measures the loyalty of the customers and the level of customer retention. customer perspective focuses on customer satisfaction and loyalty.Internal business perspective of the balanced scorecard measures the operational performance of the company. It measures the efficiency of the processes and the level of innovation.

Loblaw's internal business perspective focuses on supply chain management and innovation.The learning and growth perspective of the balanced scorecard measures the ability of the organization to innovate and learn. It measures the level of employee satisfaction and retention. Loblaw's learning and growth perspective focuses on employee satisfaction and retention.The balanced scorecard is a comprehensive tool that Loblaw uses to measure their performance. This tool helps in integrating the short-term and long-term objectives of the company.

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Last month when Holiday Creations, Incorporated, sold 41,000 units, total sales were $164,000, total variable expenses were $124,640, and fixed expenses were $39,200. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase sales volume by 375 units and total sales by $1,500? (Do not round intermediate calculations.) 1. Contribution margin ratio % 2. Estimated change in net operating income

Answers

1) The company's contribution margin (CM) ratio is 24.08%

2) The estimated change in the company's net operating income is $364.125.

1. The company's contribution margin (CM) ratio is:

CM ratio = (Total Sales - Total Variable Expenses) / Total Sales

CM ratio = ($164,000 - $124,640) / $164,000

CM ratio = 0.2408 = 24.08%

2. The estimated change in the company's net operating income can be calculated by using the following formula:

Estimated change in net operating income = (Contribution Margin x Additional units sold) + Original Net Operating Income

Where:

Contribution Margin = Total Sales - Total Variable Expenses

Contribution Margin per unit = Contribution Margin / Number of units sold

Original Net Operating Income = Total Sales - Total Variable Expenses - Fixed Expenses

Contribution Margin per unit = Contribution Margin / Number of units sold

Contribution Margin per unit = ($164,000 - $124,640) / 41,000 units = $0.97 per unit

Original Net Operating Income = $164,000 - $124,640 - $39,200 = $0.00

Estimated change in net operating income = ($0.97 x 375) + $0.00 + $1,500

Estimated change in net operating income = $364.125

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What two factors are best considered when establishing the Sprint length? (Choose two.)
A. The organization has mandated similar length sprints.
B. The level of uncertainty over the technology to be used.
C. The frequency at which team formation can be changed.
D. The risk of being disconnected from the stakeholders.

Answers

The two factors that are best considered when establishing the Sprint length are:

B. The level of uncertainty over the technology to be used: The complexity and uncertainty surrounding the technology or product being developed can impact the Sprint length. If the technology is new or there are significant unknowns, shorter Sprints may be preferred to allow for more frequent feedback and adaptation.

D. The risk of being disconnected from the stakeholders: The Sprint length should also take into account the need to engage and receive feedback from stakeholders. If there is a high risk of becoming disconnected from stakeholders over a longer period, shorter Sprints may be more suitable to ensure regular collaboration and alignment.

Factors A and C mentioned in the options are not directly related to determining the Sprint length. The organization's mandate for similar length sprints (Option A) may be a consideration but is not one of the best factors. The frequency at which team formation can be changed (Option C) is more relevant to the team dynamics and composition rather than determining the Sprint length.

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The Good Word Store reported the following figures: Retained Earnings, January 31, 2019. Retained Earnings, January 31, 2020.. Total Stockholders' Equity, January 31, 2019...........$30,000,000 Total Stockholders' Equity, January 31, 2020...$26,000,000 $39,000,000 $22,000,000 The company's fiscal year ends on January 31 each year. Dividends declared for the fiscal year ending January 31, 2020 are $14,000,000. What is the net loss for the fiscal year ending January 31, 2020? O $8,000,000 net loss O $17,000,000 net loss O $14,000,000 net loss O $3,000,000 net loss

Answers

In the case,  the net loss for the fiscal year ending January 31, 2020 is $17,000,000 net loss.

The Total Stockholders' Equity, January 31, 2019 is $30,000,000 and Total Stockholders' Equity, January 31, 2020 is $26,000,000.

We can calculate the amount of net loss for the fiscal year ending January 31, 2020, using the formula:

Net Income or Loss = Retained Earnings, January 31, 2020 - Retained Earnings, January 31, 2019 - Dividends declared for the fiscal year ending January 31, 2020

Net loss for the fiscal year ending January 31, 2020 = $22,000,000 - $30,000,000 - $14,000,000

Net loss for the fiscal year ending January 31, 2020 = -$22,000,000

Thus, the answer is: $17,000,000 net loss.

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Sen Click Submit to complete this insessment Question 16 4 points On Dec 31, 2020, ABC Corp issued 4-year, 7% bonds with $3,000,000 as par value ABC Corp. received $3,360,000 in cash. The bond interes

Answers

ABC Corp issued [tex]3,360[/tex] bonds, the annual interest payment is [tex]\$140[/tex] per bond, and the journal entry recorded the bond issuance.

On December [tex]31, 2020[/tex], ABC Corp issued [tex]\$3,000,000[/tex] par value 4-year, [tex]7\%[/tex] bonds and received [tex]\$3,360,000[/tex] in cash. The bond interest payable is semi-annually with a face value of [tex]\$1,000[/tex]. To determine the number of bonds issued, divide the total cash received by the par value per bond, resulting in [tex]3,360[/tex] bonds. The annual interest payment to bondholders can be calculated by multiplying the semi-annual interest payment by [tex]2[/tex], as the interest is paid twice a year. Thus, ABC Corp must pay [tex]\$140[/tex] annually to each bondholder. The journal entry to record the bond issuance on December [tex]31, 2020[/tex], includes debiting Cash for [tex]\$3,360,000[/tex], crediting Bonds Payable for [tex]\$3,000,000[/tex], and crediting Premium on Bonds Payable for the remaining [tex]\$360,000[/tex].

In conclusion, ABC Corp issued [tex]3,360[/tex] bonds with a par value of [tex]\$3,000,000[/tex] and received [tex]\$3,360,000[/tex] in cash. The annual interest payment to bondholders is [tex]\$140[/tex] per bond. The journal entry on December [tex]31, 2020[/tex], recorded the issuance of bonds by debiting Cash for [tex]\$3,360,000[/tex], crediting Bonds Payable for [tex]\$3,000,000[/tex], and crediting Premium on Bonds Payable for [tex]\$360,000[/tex].

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Rudyard Corporation had 230,000 shares of common stock and 23,000 shares of 5%, $100 par convertible preferred stock outstanding during the year. Net income for the year was $530,000 and dividends were paid to both common and preferred shareholders. Rudyard's effective tax rate is 25%. What is Rudyard's basic EPS?

Answers

To calculate Rudyard Corporation's basic earnings per share (EPS), we need to determine the weighted average number of common shares outstanding and divide the net income by this value.

Weighted Average Number of Common Shares Outstanding:

The weighted average number of common shares outstanding is calculated by taking the number of shares outstanding for each period and multiplying it by the portion of the year those shares were outstanding. In this case, we have 230,000 shares of common stock outstanding for the entire year.

Net Income:

The net income for the year is given as $530,000.

Preferred Dividends:

The preferred stock has a 5% dividend rate and a par value of $100. Since the preferred stock is convertible, we need to determine if it is dilutive or antidilutive. If the preferred dividends are greater than the potential additional common shares from conversion, the preferred stock is dilutive and the dividends need to be subtracted from net income. Otherwise, if the preferred dividends are less than or equal to the potential additional common shares from conversion, they are not dilutive and no adjustment is needed. Let's assume that the preferred dividends are less than the potential additional common shares.

Weighted Average Number of Common Shares Outstanding = 230,000

Basic EPS = (Net Income - Preferred Dividends) / Weighted Average Number of Common Shares Outstanding

         = ($530,000 - (23,000 * 5% * $100)) / 230,000

         = ($530,000 - $115,000) / 230,000

         = $415,000 / 230,000

         = $1.8043 (rounded to four decimal places)

Therefore, Rudyard Corporation's basic EPS is approximately $1.8043.

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write a query to display the checkout number, checkout date, and due date for every book that has been checked out sorted by checkout number.

Answers

To display the checkout number, checkout date, and due date for every book that has been checked out, sorted by the checkout number, you can use a SQL query. Assuming you have a table named "Checkouts" with columns "CheckoutNumber," "CheckoutDate," "DueDate," and "BookID," you can use the following query:

SELECT CheckoutNumber, CheckoutDate, DueDate

FROM Checkouts

ORDER BY CheckoutNumber;

This query selects the desired columns from the "Checkouts" table and sorts the result by the checkout number in ascending order.

Make sure to replace "Checkouts" with the actual name of your table containing the checkout information.

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1:1 On January 1, 2020, Crashcup purchased a new truck for $250,000. The truck had an estimated five year economic life with a residual value of $50,000. Crashcup used straight-line depreciation. On October 1, 2023, Crashcup sold the truck for $125,000. Calculate the gain or loss reported by Crashcup in 2023

Answers

In 2023, Crashcup reported a loss of $5,000 on the sale of the truck. The loss is calculated by subtracting the book value of $130,000 from the proceeds of $125,000.

To calculate the gain or loss reported by Crashcup in 2023, we need to compare the proceeds from the sale of the truck with its book value.

Calculate the annual depreciation:

Annual Depreciation = (Purchase Cost - Residual Value) / Useful Life

Annual Depreciation = ($250,000 - $50,000) / 5 years

Annual Depreciation = $40,000

Calculate the accumulated depreciation as of October 1, 2023:

Accumulated Depreciation = Annual Depreciation x Number of Years

Accumulated Depreciation = $40,000 x (2023 - 2020) = $120,000

Calculate the book value of the truck as of October 1, 2023:

Book Value = Purchase Cost - Accumulated Depreciation

Book Value = $250,000 - $120,000 = $130,000

Calculate the gain or loss on the sale of the truck:

Gain or Loss = Proceeds from Sale - Book Value

Gain or Loss = $125,000 - $130,000 = -$5,000

Since the calculated value is negative, Crashcup would report a loss of $5,000 in 2023.

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Each question is worth 10 marks. 1. Comment on the following statement: "Well-functioning money markets are very important in any market economy because they provide an efficient means for economic units to adjust their liquidity positions, and enable central banks to conduct monetary policy." 2. In what ways stock indices are useful to investors? What are the reasons for the rise of index funds and exchange traded funds (ETFs)? 3. Coles, one of the two giant supermarkets in Australia, sells in-house baked bread, cakes and pastry. Thus, it has to purchase a reasonable amount of wheat every month. Amid recent rising wheat prices, it is looking for a way to protect itself. Suggest TWO possible derivatives contracts for Coles to hedge against price risk. Which one would be the best for Coles? 4. Comment on the following statement: "For any country, especially a newly established country, or a country which just went through a war or a revolution, bonds and the bond market play a critical role in its nation building." 5. When facing complex and volatile market conditions, which heuristics financial market participants often apply to assist them with decision making? 6. Explain why Bitcoin and stablecoins could bring about financial instability.

Answers

Well-functioning money markets are essential in a market economy as they provide a mechanism for economic units to adjust their liquidity positions efficiently. They enable central banks to conduct monetary policy by influencing interest rates and managing liquidity.

Money markets facilitate borrowing and lending of short-term funds, allowing economic units to meet their financing needs. Overall, money markets play a crucial role in maintaining liquidity, stability, and effective monetary policy implementation in the economy.

1. The statement accurately highlights the importance of well-functioning money markets in a market economy. Money markets provide a platform for economic units to manage their liquidity needs efficiently. By facilitating the borrowing and lending of short-term funds, money markets enable economic units to adjust their liquidity positions and meet their financing requirements.

2. Stock indices serve as benchmarks that track the performance of a specific group of stocks or the overall stock market. They are useful to investors in several ways:

a) Performance measurement: Stock indices provide a reference point to evaluate the performance of individual stocks, mutual funds, or portfolios. Investors can compare their investment returns against the performance of relevant indices to assess the success of their investment strategies.

b) Market trends and sentiment: Stock indices reflect the overall market trends and investor sentiment. Changes in indices can provide insights into the broader market conditions and help investors make informed decisions about their investment allocations.

c) Diversification: Indices represent a basket of stocks from different sectors or regions, allowing investors to achieve diversification by investing in index funds or ETFs. This diversification helps reduce specific stock risks and potentially enhances overall portfolio stability.

The rise of index funds and ETFs can be attributed to their advantages such as low costs, ease of diversification, and ability to passively track specific indices.

3. Two possible derivatives contracts for Coles to hedge against price risk in wheat are:

a) Futures contracts: Coles can enter into futures contracts to lock in the price of wheat for future delivery. By buying futures contracts, Coles can hedge against potential price increases in wheat, ensuring a fixed purchase price for the agreed-upon quantity.

b) Options contracts: Coles can purchase put options on wheat as a form of price protection. Put options provide Coles with the right, but not the obligation, to sell wheat at a predetermined price (strike price) within a specified time period. If wheat prices rise, Coles can exercise the put options and sell at the higher strike price, offsetting the increased cost.

4. The statement is accurate in highlighting the critical role of bonds and the bond market in nation-building, especially for newly established countries or those recovering from wars or revolutions. Bonds and the bond market serve several crucial functions:

a) Financing infrastructure and development: Bonds allow governments to raise capital for investment in infrastructure projects, public services, and other development initiatives. By issuing bonds, countries can attract domestic and international investors to fund their nation-building efforts.

b) Attracting foreign investment: A well-developed bond market can attract foreign investors seeking fixed-income investments. This foreign investment can contribute to economic growth, currency stability, and increased liquidity in the financial markets.

c) Establishing creditworthiness: A vibrant bond market enables governments to establish a track record of responsible debt management and repayment.

d) Supporting monetary policy: Government

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Sky Tracker Corporation manufactures a telecommunications device. During its first year of operations, the company started and completed 50 devices at a cost of $60,000 per unit. Of these, 48 were sold for $100,000 each and two remain in finished goods Inventory. In addition, the company had six partially completed units in its factory at year-end. Total costs for the year (summarized alphabetically) were as follows Direct materials used Direct labor Income tax expense General and administrative expenses Manufacturing overhead Selling expenses $ 771,000 826,000 100,000 500,000 1,630,000 500,000 es Required: a. Compute the total manufacturing costs charged to work in process for the current year. b. Compute the cost of finished goods manufactured for the current year. c. Compute the cost of goods sold for the current year. d. Compute the gross profit on sales and net income for the current year. e. Compute the dollar value of ending inventories of (1) work in process and (2) finished goods for the current year. Total manufacturing costs charged to work in process for the current year. b. Cost of finished goods manufactured Cost of goods sold Gross profit on sales Net Income $ 3.227.000 $ 3.000.000 $ 2.880,000 $ 1,920.000 d

Answers

The total manufacturing costs charged to work in process for the current year amount to $3,227,000. This includes the direct materials used ($771,000), direct labor ($826,000), and manufacturing overhead ($1,630,000) expenses.

The cost of finished goods manufactured for the current year is $3,000,000. This cost is derived from the 50 completed devices manufactured at a cost of $60,000 per unit. The cost of goods sold for the current year is $2,880,000. This includes the cost of the 48 devices sold at $100,000 each.

The gross profit on sales for the current year is $1,920,000, which is calculated by subtracting the cost of goods sold ($2,880,000) from the sales revenue of the 48 devices ($100,000 per device). The net income for the current year is also $1,920,000, as there is no mention of other expenses or income apart from the costs provided.

The dollar value of ending inventories is as follows: (1) The work in process inventory has a value of $500,000, which includes the six partially completed units in the factory. (2) The finished goods inventory has a value of $200,000, representing the cost of the two unsold devices remaining.

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What is the present value of the following set of cash flows, discounted at 14.8% per year? 2 Year CF 1 $110 -$110 The present value of the cash flow stream is $ (Round to the nearest cent.) CIT 3 $209 -$209

Answers

The present value of the cash flow stream is $12.57 (rounded to the nearest cent).

How to determine the present value

We can use the formula to calculate the present value of the cash flows.:

Present Value = [tex]CF1 / (1 + r)^1 + CF2 / (1 + r)^2[/tex]

where CF1 and CF2 are the cash flows, and r is the discount rate.

In this case, the cash flows are as follows:

CF1 = $110

CF2 = -$110

The discount rate is 14.8% per year, which can be expressed as a decimal as 0.148.

We can now enter the following values into the formula:

Present Value  =[tex]\\$110 / (1 + 0.148)^1 + (-$110) / (1 + 0.148)^2[/tex]

Calculating this expression, we find:

Present Value = $110 / 1.148 + (-$110) / 1.321504

Simplifying further:

Present Value = $95.87 - $83.30

Present Value = $12.57

Therefore, the present value of the cash flow stream is $12.57 (rounded to the nearest cent).

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The company declared and paid $30,000 of cash dividends In 2021, The company declared and paid $150,000 of cash dividend Required: How much is the TOTAL cash dividends that will be distributed to preferred and common stockholders over the two years, assuming the preferred stock is cumulative Please DO NOT use the "S" and "," signs in you answer. For example, if the right answer is Preferred $10,000 and Common $15,000, it should be EXACTLY written as: 10000 15000 Preferred Common Technology has been changing working lives and employment for many years. The Covid 19 pandemic over the last 2 years has further accelerated many of these changes. Discuss the impact technology has had on work and summarise what this means for individuals. How could the firm managers in "identifying assets in low-valued uses and devise ways to profitably move them to higher-valued uses" (Froeb et al, 2018)? mesoscale convective systems can be as much as a few hundred miles across. barton industries expects that its target capital structure for raising funds in the future for its capital budget will consist of 40% debt, 5% preferred stock, and 55% common equity. note that the firm's marginal tax rate is 25%. assume that the firm's cost of debt, rd, is 10.8%, the firm's cost of preferred stock, rp, is 10.0% and the firm's cost of equity is 13.4% for old equity, rs, and 13.7% for new equity, re. what is the firm's weighted average cost of capital (wacc1) if it uses retained earnings as its source of common equity? do not round intermediate calculations. round your answer to two decimal places. in salt water fish, chloride cells in the gills: question 7 options: a) actively transport cl- from the plasma to the ecf. b) actively transport cl- from the external environment to the ecf. c) actively transport cl- from the ecf to the external environment. d) passively transport cl- from the ecf to the external environment. Boba Fett has been employed in the accounts payable department as an A/P Supervisor for the past 3 years by Beskar Metal Works Inc. (BMW), a public Canadian corporation incorporated in Ontario in 2014. BMW is a leading wholesaler of beskar metals across Canada. Boba has asked you, Sasha Banks CPA, the trusted tax person at BMW for your help in the preparation of their 2021 personal tax return. Boba has provided you with the following information about receipts, selected disbursements and the following information/calculations.1. Salary $130,000Deductions:Income taxes $36,000Canada Pension Plan premium $3,166Utilities (500/2,500 * $1,500) $300Employment Insurance premium $889Clothing costs $1,900Home office supplies $600Group accident disability insurance premiums $1,200 (44,055)Net Income $ 85,9452. On December 13th, 2021 Boba requested and received from BMW an advance of $6,500 against his 2022 salary. Boba needed the advance to pay for his family to attend Comicon in Detroit over the latter part of December. A cheque for $6,500 was paid through the accounts payable department at BMW. Bobas monthly payments in January 2022 was reduced by $6,500 as a means for Boba to pay back the advance.3. In 2018 BMW granted Boba stock options to purchase a total of 7,000 shares over the next 6 years. The exercise price of these shares is $44 and the fair market value of the shares on the grant date was $40 per share. In 2021, Boba exercised the option to purchase 1,000 of the shares when the market price per share was $56. Boba did not dispose of these shares during 2021 and this was the first time Boba had purchased any shares.4. Image is important at BMW, as such in 2021 Boba was provided with a $2,400 clothing What is your investment preferences and how can you justify them considering age, family situation, incomes etc?