on january 6, year 1, bulldog co. purchased 34% of the outstanding stock of gator co. for $212,000. gator co. paid total dividends of $24,000 to all shareholders on june 30. gator had a net loss of $56,000 for year 1. journalize bulldog's purchase of the stock, receipt of the dividends, and the adjusting entry for the equity loss in gator co. stock. compute the balance of investment in gator co. stock on december 31, year 1. how does valuing an investment under the equity method differ from valuing an investment at fair value?

Answers

Answer 1

Journal entry is a method of recording all the transactions occured in a business during a given accounting period. To record journal entry in the books of Bulldog Co.'s during the year end 31st December is as follows:

Investment in Gator Co. Stock A/c Dr.  $212,000

Cash A/c  Cr.  $212,000

(Being stock purchased)

Cash A/c  Dr.  $8,160 (34% of $24,000)

Dividend Income A/c Cr.  $8,160

(Being receipt of dividend recorded)

Equity Loss in Gator Co. Stock A/c Dr. $ 19,040 (34% of $56,000)

Investment in Gator Co. Stock A/c  Cr.  $19,040

(Being adjusting entry for the equity loss recorded)

2. To calculate balance on Investment:

Beginning balance =  $212,000 (Initial purchase)

Add: Net loss = $19,040 (34% of $56,000)

Less: Dividends received = $8,160 (34% of $24,000)

Balance of investment:

$212,000 + $19,040 - $8,160

= $222,880

Therefore, the balance of the investment in Gator Co. stock on December 31, Year 1 is $ 222,880.

3. Valuation of investment under the equity method differs from fair value method in following ways:

Under equity method, investors record their share of the investee's net profit or loss and adjust their investment accounts accordingly. Investors also recognize a portion of the dividends received as dividend income. Investment account balances reflect an investor's ownership interest in the net assets of the company. 

Under fair value method, investors value their investments at fair value. Fair value is the price received to sell an investment in an orderly transaction between market participants. Changes in the fair value of investments are recognized in the investor's income statement. The fair value method focuses on the market value of an investment rather than the financial performance.

To learn more about Journal entry:

https://brainly.com/question/13483463

#SPJ4


Related Questions

Complete the capital budgeting template and the requirements
listed in the instructions
Input variables Number of trucks Discount rate Sale Multiple Cost variables Property tax (base) Property tax growth Maintenance expenses (base) Maintenance expense growth Truck Rental Base Case Base r

Answers

To complete a capital budgeting template for a rental company, there are several requirements that need to be addressed. The template should include essential elements such as projected cash flows, initial investment costs, salvage value and the expected useful life of the rental assets.

How can we complete the capital budgeting template and the requirements for rental company?

A capital budgeting template serves as a tool for evaluating potential investment projects. For a rental company, the template should include key information such as projected cash flows which involve estimating the revenue generated by renting out assets and the corresponding expenses.

This analysis allows you to assess the profitability of the investment over time. In addition, the template should account for the initial investment costs required to acquire the rental assets. This includes the purchase or lease costs of the assets, as well as any expenses related to refurbishment or customization.

By addressing these requirements within the capital budgeting template, a rental company can effectively evaluate investment opportunities and make informed decisions that align with its financial objectives.

Read more about capital budgeting

brainly.com/question/14020241

#SPJ4

Consider the following information for a business. Sales 1,000,000 pounds Cost of sales 250,000 pounds Operating expenses180,000 pounds Tax 40,000 pounds What is the net profit margin of the business? Select one a) 57 percent b) 71 percent c) 53 percent d) 75 percent Part 2: Consider the following information for a business: Bank 75,000 pounds Accounts receivable 20,000 pounds Inventory 45,000 pounds NON CURRENT ASSETS Property. plant and equipment 100,000 pounds Which amount will be used when calucalating return on total assets Is it a, b, c or d) ? a) 240,000 Pounds b) 140,000 Pounds c) 100,000 Pounds d) 175,000 Pounds Part 3: The total equity amount when calculating return on equity includes all equity of the business , such as share capital and retained earnings. Is this statement true of false? Part 4: Consider the following information for a business CURRENT ASSETS Bank 60,000 pounds Accounts receivable 15,000 pounds Inventory 30,000 pounds Petty cash 1,000 pounds NON CURRENT ASSETS Property, plant and equipment 120,000 pounds CURRENT LIABILITIES Accounts payable 18,000 pounds Short-term loan 5,000 pounds NON-CURRENT LIABILITIES Mortgage 800,000 pounds What is the quick ratio of the business? Select one: a) 3.3. b) 0,15 c) 0,63 d) 4,6

Answers

1. The net profit margin of the business is 53 percent.

The correct answer to the given question is option c.

2. The amount used when calculating the return on total assets is 240,000 pounds.

The correct answer to the given question is option a.

3. The given statement "the total equity amount when calculating return on equity includes all equity of the business, such as share capital and retained earnings" is true.

4. The quick ratio of the business is approximately 3.26 which is rounded off to 3.3.

The correct answer to the given question is option a.

Part 1: To calculate the net profit margin of the business, we need to divide the net profit by the sales and multiply by 100 to express it as a percentage. The net profit is calculated by deducting the cost of sales, operating expenses, and tax from the sales.

Net profit = Sales - Cost of sales - Operating expenses - Tax

Net profit = 1,000,000 - 250,000 - 180,000 - 40,000

Net profit = 530,000 pounds

Net profit margin = (Net profit / Sales) * 100

Net profit margin = (530,000 / 1,000,000) * 100

Net profit margin = 53 percent

Therefore, the net profit margin of the business is 53 percent (Option c).

Part 2: When calculating the return on total assets, we need to consider the total assets of the business, which include both current and non-current assets. The total assets are the sum of all assets.

Total assets = Bank + Accounts receivable + Inventory + Property, plant and equipment

Total assets = 75,000 + 20,000 + 45,000 + 100,000

Total assets = 240,000 pounds

Therefore, the amount used when calculating the return on total assets is 240,000 pounds (Option a).

Part 3: The statement that the total equity amount when calculating return on equity includes all equity of the business, such as share capital and retained earnings, is true. Return on equity (ROE) measures the profitability of a business in relation to its total equity, which includes the investment by shareholders and the accumulated earnings.

Part 4: The quick ratio, also known as the acid-test ratio, is a measure of a company's ability to meet its short-term liabilities using its most liquid assets. It is computed by dividing the total amount of cash, accounts receivable, and marketable securities by the total amount of current obligations.

Quick ratio = (Cash + Accounts receivable + Marketable securities) / Current liabilities

Quick ratio = (60,000 + 15,000 + 0) / (18,000 + 5,000)

Quick ratio = 75,000 / 23,000

Quick ratio ≈ 3.26

Therefore, the quick ratio of the business is approximately 3.26 (Option a).

For more such questions on profit, click on:

https://brainly.com/question/1078746

#SPJ11

Task 1: The European Monetary System (1979-1998) 1a) What was the European Monetary System (EMS)? Why was it established? 1b) How and why was it dominated by Germany? What were the consequences of this dominance? 1c) What place did Austria find in this system?

Answers

The European Monetary System (EMS) was established in 1979. It was an agreement between European nations to coordinate economic policies and stabilize their currencies. The EMS was established to create a framework for financial integration among the member states of the European Community (EC). EMS played a crucial role in the establishment of the European Union (EU) in the late 1990s.

1b) Germany dominated the European Monetary System (EMS) in terms of monetary and economic power, due to its economic strength. It dominated the Exchange Rate Mechanism (ERM) which was part of the EMS, and Germany was the anchor country for the ERM.As a result of German domination, the exchange rate stability of other countries was hampered. German monetary policy became the guiding principle for other member states, which resulted in a loss of monetary independence for smaller countries.

The consequences of this dominance were the increasing loss of monetary independence of other member states. Countries were forced to align their policies with the German monetary policy, which was at times inappropriate for their specific economic conditions. Austria found itself in a precarious position in the EMS due to its membership in a common economic bloc with Germany. Austria was forced to align its policies with the German monetary policy which was not always ideal for Austria's unique economic conditions. Austria's membership in the EMS brought stability to its currency and economic growth, but it also lost its monetary independence to some extent.

To know more about established visit:

https://brainly.com/question/28542155

#SPJ11

By assumption, individual preferences must be transitive. Suppose Marsha, Jan, and Cindy individually have transitive preferences over three goods: Oranges, apples, and pears. Marsha, Jan, and Cindy have decided to vote on whether to name oranges, apples, or pears the "fruit of the month." Show that it is possible that the group’s majority preferences might not be transitive.

Answers

Given that Marsha, Jan, and Cindy individually have transitive preferences over three goods: Oranges, apples, and pears. The transitivity is defined as the property of preferences whereby if an individual prefers option A to B and option B to C, then the individual must prefer option A to C.

Hence, we will assume that Marsha, Jan, and Cindy have the following individual preferences: Marsha prefers Oranges > Apples > Pears Jan prefers Apples > Pears > Oranges Cindy prefers Pears > Oranges > Apples Case 1:Oranges > Apples and Apples > Pears does not imply Oranges > Pears Case 2: Apples > Pears and Pears > Oranges does not imply Apples > Oranges  Case 3: Pears > Oranges and Oranges > Apples does not imply Pears > Apples The group’s preferences may not be transitive in this case if we look at the preferences by all the three people together.

It is possible that the group’s majority preferences might not be transitive. Explanation: Based on individual preferences, we can't make out what fruit of the month would be. For example, in the individual preference of Marsha, Oranges come first, and in Cindy's preference, Oranges come last. So we need to look at the group preferences to make out what would be the Fruit of the Month. But as we see the group preferences, the group preferences can not be transitive.

To know more about preferences visit:

https://brainly.com/question/32703209

#SPJ11









All items of plant and equipment, including land, eventually wear out or lose their usefulness.

Answers

Yes, it is true that all items of plant and equipment, including land, eventually wear out or lose their usefulness.

Plant and equipment are the fixed assets owned by the entity to generate profits by conducting business operations. They have a useful life and eventually wear out or lose their usefulness. The useful life of plant and equipment varies from one asset to another. For instance, furniture has a shorter useful life than a building. Plant refers to machinery, tools, and equipment. On the other hand, equipment is the set of tools that require no electrical or electronic energy to function. In general, plant and equipment require a considerable investment by the business, which implies that a proper depreciation method must be used to compute the actual value of the fixed asset as they wear out or become outdated. Depreciation is the term used to describe the reduction in the value of fixed assets over time. All fixed assets have a useful life, which is defined as the period in which the asset can be expected to provide economic benefits.

Know more about plant and equipment, here:

https://brainly.com/question/31867760

#SPJ11

4-AREKS CORP. realize the production and marketing of a kind of an electrical appliance. Financial information of the business for a period are given below:
Unit Sale Price

Sales quantitiy

Production Quantity

Direct Material

Direct Labor

Variable Manufacturing Overhead

Fixed Manufacturing Overhead

Marketing Expenses

60$/Unit

29.100 Unit

35.200 Unit

12$/Unit

9 $/Unit

3 $/Unit

281.600 $

420.000 $

Administration Expenses

240.000 $

FIFO method is used fort he inventories.

a) Prepare the Income Statement with Full Costing Method,

b) Prepare the Income Statement with Variable Costing Method.

Answers

To prepare the income statement using the full costing method, we need to consider all the costs incurred in the production and sale of the electrical appliances. The income statement would include the following components:

a) Income Statement with Full Costing Method:

Sales Revenue:

Quantity Sold × Unit Sale Price = 29,100 units × $60 = $1,746,000

Cost of Goods Sold:

Direct Materials: Quantity Produced × Cost per Unit = 35,200 units × $12 = $422,400

Direct Labor: Quantity Produced × Cost per Unit = 35,200 units × $9 = $316,800

Variable Manufacturing Overhead: Quantity Produced × Cost per Unit = 35,200 units × $3 = $105,600

Total Manufacturing Cost = Direct Materials + Direct Labor + Variable Manufacturing Overhead

Total Manufacturing Cost = $422,400 + $316,800 + $105,600 = $844,800

Gross Profit:

Sales Revenue - Cost of Goods Sold = $1,746,000 - $844,800 = $901,200

Operating Expenses:

Fixed Manufacturing Overhead = $281,600

Marketing Expenses = $420,000

Administration Expenses = $240,000

Total Operating Expenses = Fixed Manufacturing Overhead + Marketing Expenses + Administration Expenses

Total Operating Expenses = $281,600 + $420,000 + $240,000 = $941,600

Net Income:

Gross Profit - Total Operating Expenses = $901,200 - $941,600 = -$40,400

b) To prepare the income statement using the variable costing method, we will only consider the variable costs directly associated with the production and sale of the electrical appliances. The income statement would include the following components:

b) Income Statement with Variable Costing Method:

Sales Revenue:

$1,746,000 (same as in the full costing method)

Variable Cost of Goods Sold:

Direct Materials: Quantity Produced × Cost per Unit = 35,200 units × $12 = $422,400

Direct Labor: Quantity Produced × Cost per Unit = 35,200 units × $9 = $316,800

Variable Manufacturing Overhead: Quantity Produced × Cost per Unit = 35,200 units × $3 = $105,600

Total Variable Manufacturing Cost = Direct Materials + Direct Labor + Variable Manufacturing Overhead

Total Variable Manufacturing Cost = $422,400 + $316,800 + $105,600 = $844,800

Variable Selling and Administrative Expenses:

Marketing Expenses = $420,000

Contribution Margin:

Sales Revenue - Variable Cost of Goods Sold - Variable Selling and Administrative Expenses

$1,746,000 - $844,800 - $420,000 = $481,200

Fixed Manufacturing Overhead: $281,600 (not included in the variable costing method)

Fixed Selling and Administrative Expenses:

Administration Expenses = $240,000

Net Income:

Contribution Margin - Fixed Manufacturing Overhead - Fixed Selling and Administrative Expenses

$481,200 - $281,600 - $240,000 = -$40,400

In both methods, the net income is -$40,400. The difference lies in the treatment of fixed manufacturing overhead. The full costing method allocates fixed manufacturing overhead to the cost of goods sold, while the variable costing method does not.

Learn more about   . Financial information   here- https://brainly.com/question/1203926

#SPJ4

Actual investment spending includes spending by consumers onA) services.B) durable goods.C) nondurable goods.D) new houses.

Answers

Actual investment spending includes spending by consumers on a new house. The correct option is D.

Actual investment spending refers to the expenditure made by businesses on capital goods, such as machinery, equipment, buildings, and other long-term assets. It does not directly include consumer spending on goods and services.

A) Services: Consumer spending on services, such as healthcare, education, transportation, and entertainment, does not fall under actual investment spending. These expenditures are considered part of personal consumption expenditure (PCE), which is a component of aggregate demand and contributes to economic growth from the consumer side.

B) Durable goods: Consumer spending on durable goods, such as automobiles, furniture, appliances, and electronics, is also not considered actual investment spending. It falls under PCE and represents consumer purchases of long-lasting goods that are expected to provide utility over an extended period.

C) Nondurable goods: Consumer spending on nondurable goods, including food, clothing, and personal care products, is also not classified as actual investment spending. These goods are consumed or used up relatively quickly and do not contribute to the capital stock of businesses.

D) New houses: Consumer spending on new houses, often referred to as residential investment, is an exception. It is considered a component of actual investment spending. Residential investment represents the construction or purchase of new housing units, which contributes to the growth and expansion of the housing sector. It involves the acquisition of a long-term asset and is classified as a form of capital investment.

In summary, among the given options, consumer spending on new houses (option D) is considered part of actual investment spending, while consumer spending on services (option A), durable goods (option B), and nondurable goods (option C) fall under personal consumption expenditure.

Therefore the correct answer is option D.

Learn more about investment refer here:

https://brainly.com/question/15105766

#SPJ11

Today is 15 May 2022. Saamiya has just purchased a Treasury bond with a face value of $100, maturing at par and paying coupon at j2 = 3.4% p.a. The purchase price was $100.065. The maturity date of this bond is 15 May 2024. QUESTION 4 [2 marks] Use the bond salesperson's formula to estimate Saamiya's purchase yield. Give your answer in j2 form, rounded to three decimal places. a. 1.683% p.a. b. 1.809% p.a. c. 2.999% p.a. d. 3.366% p.a. QUESTION 5 [2 marks] Use linear interpolation to calculate the yield rate. Give your answer in j2 form, rounded to three decimal places. Hint: 1.65% per half year and 1.9% per half year are the lower bound and the upper bound for the linear interpolation. a. 1.683% p.a. b. 3.201% p.a. c. 3.366% p.a. d. 3.550% p.a. QUESTION 6 [2 marks] Which of the following statements is incorrect? a. The duration of this Treasury bond will be higher if its coupon rate is higher. b. We can use the duration of this Treasury bond to measure its price sensitivity. c. The duration of this Treasury bond will increase if the yield rate at purchase is lower. d. The purchase price of this Treasury bond will decrease, if this Treasury bond is subject to a 30% tax on both interest and capital gains.

Answers

4: The estimated purchase yield for Saamiya's Treasury bond can be calculated using the bond salesperson's formula. The correct answer is option d. 3.366% p.a.5: To calculate the yield rate using linear interpolation, we need to determine the yield rate that corresponds to the purchase price of $100.065. The correct answer is c. option 3.366% p.a.6: The incorrect statement among the options provided is d. The purchase price of this Treasury bond will decrease if this Treasury bond is subject to a 30% tax on both interest and capital gains.

For question 4, the bond salesperson's formula is used to estimate the purchase yield. It considers the face value, purchase price, coupon rate, and time to maturity of the bond. By applying the formula, we arrive at the correct answer of d. 3.366% p.a.

In question 5, linear interpolation is used to calculate the yield rate that corresponds to the given purchase price. The lower bound and upper bound yields provided are used to estimate the yield rate within that range. By interpolating between the bounds, we find that the yield rate is approximately 3.366% p.a., which aligns with option c.

Regarding question 6, the incorrect statement is d. The purchase price of a Treasury bond is not directly affected by taxes on interest and capital gains. Taxes may impact the after-tax returns received by the investor, but they do not affect the purchase price of the bond itself. Therefore, option d is incorrect.

In summary, the estimated purchase yield is 3.366% p.a. using the bond salesperson's formula. The yield rate calculated through linear interpolation is also 3.366% p.a. Lastly, the incorrect statement is d, as taxes on interest and capital gains do not affect the purchase price of the Treasury bond.

For more questions yield rate

https://brainly.com/question/32566017

#SPJ8

Brana Company is financed 75 percent by equity and 25 percent by debt. If the firm expects to earn $30 million in net income next year and retain 40% of it, how large can the capital budget be before new common stock must be sold? O $120 million 575 million $15.5 million O 516.0 million

Answers

The correct option for the given question is option B, which is $575 million. Explanation: The dividend payout ratio of the Brana Company is (1-0.40) = 0.60 or 60%. The amount of dividends paid out of the $30 million of net income will be $30 million × 0.60 = $18 million.

The remaining amount of the net income that is retained is $30 million - $18 million = $12 million. The total amount of capital available for investment is thus equal to the amount of net income retained plus any debt financing, or $12 million + 0.25C, where C is the capital budget. Therefore, the amount of funding where new common stock must be sold is equal to the amount of equity financing, or 0.75C. The equation that defines the amount of the budget where new common stock must be sold is:0.75C = $12 million + 0.25CCollecting like terms gives:0.50C = $12 millionDividing both sides by 0.50 gives: C = $24 million

Therefore, the capital budget can be $24 million before new common stock must be sold. The answer, however, is not $24 million, as the question asked how large the capital budget can be before new common stock must be sold. The answer is instead:0.75C = $24 millionC = $24 million / 0.75 = $32 millionThis is the total capital budget that includes the debt financing. The amount of equity financing is therefore:$32 million – ($32 million × 0.25) = $32 million – $8 million = $24 million, the capital budget where new common stock must be sold is $32 million, of which $24 million is equity financing, which represents 75% of the total capital budget. Therefore, the answer is $32 million or $575 million.

To know more about capital budget please refer:

https://brainly.com/question/14020241

#SPJ11

please help
Life Cycle Metal Recycling and Salvage receives the opportunity to salvage scrap metal and other materials from an oid industrial. The curent owners of the she will sign over the site to Life Cycle at

Answers

Life Cycle Metal Recycling and Salvage receives the opportunity to salvage scrap metal and other materials from an old industrial site. The current owners of the site will sign it over to Life Cycle at the end of the year. The metal recycling company's next step will be to conduct a site assessment and cleanup before beginning the salvage process.

The site assessment will be conducted to evaluate the site and determine the level of contamination, if any, and the necessary remediation methods. After that, the cleanup process will be initiated, which will involve the removal of hazardous materials, debris, and other waste. After the site has been thoroughly cleaned, the salvage process will begin. Life Cycle will use heavy equipment, such as cranes and bulldozers, to dismantle and sort the scrap metal. The metal will then be transported to the recycling facility, where it will be melted down and formed into new products.The benefits of recycling metal are numerous.

It conserves natural resources, reduces greenhouse gas emissions, and saves energy. According to the Environmental Protection Agency (EPA), recycling one ton of steel conserves 2,500 pounds of iron ore, 1,400 pounds of coal, and 120 pounds of limestone. Furthermore, recycling metal reduces the amount of waste in landfills and the need for new landfills. In addition, it reduces the amount of water pollution caused by mining and the amount of air pollution caused by the production of new metal products. Overall, recycling metal is a sustainable and environmentally friendly practice that helps conserve natural resources and protect the environment.

To know more about Life Cycle visit:

brainly.com/question/14804328

#SPJ11

: 1. What is the original return on investment (ROI) for Anderson Ceramics (before making any additional investment)? 2. What would the ROI be for Anderson Ceramics if this investment opportunity were undertaken? Would the manager of the Anderson Ceramics division want to make this investment if she were evaluated based on ROI? Why or why not? 3. What is the ROI of the investment opportunity? Would the investment be desirable from the standpoint of Alderman Corporation? Why or why not? 4. What would the residual income (RI) be for Anderson Ceramics if this investment opportunity were to be undertaken? Would the manager of the Anderson Ceramics division want to make this investment if she were evaluated based on RI? Why or why not? 5. What is the Rl of the investment opportunity? Would the investment be desirable from the standpoint of Alderman Corporation? Why or why not? 6. Which performance measurement method, ROI or RI, promotes goal congruence? Why?

Answers

The original return on investment (ROI) for Anderson Ceramics is 20%. If the new investment opportunity is undertaken, the ROI would be 18%. The manager wouldn't make the investment as it would lower the overall ROI. ROI formula: (Operating income / Total assets) * 100.

Requirement 1:

To calculate the original return on investment (ROI) for Anderson Ceramics, we use the formula:

ROI = (Operating income / Total assets) * 100

Given

Operating income = $82,000

Total assets = $410,000

Plugging in the values:

ROI = ($82,000 / $410,000) * 100

Calculating this gives us:

ROI = 20%

Therefore, the original return on investment (ROI) for Anderson Ceramics is 20%.

Requirement 2

If the new investment opportunity were undertaken, we need to recalculate the ROI. The investment would require $164,000 and earn $21,320 for the company.

New Operating income = Original Operating income + Income from new investment = $82,000 + $21,320 = $103,320

New Total assets = Original Total assets + Investment = $410,000 + $164,000 = $574,000

New ROI = (New Operating income / New Total assets) * 100 = ($103,320 / $574,000) * 100

Calculating this gives us

New ROI = 18%

The manager of the Anderson Ceramics division would not want to make this investment if evaluated based on ROI because the new ROI of 18% is lower than the original ROI of 20%. Making the investment would decrease the overall ROI.

Requirement 3

The formula to calculate ROI is:

ROI = (Operating income / Total assets) * 100

Operating income refers to the division's income before taxes and interest.

Total assets represent the average total assets employed by the division.

By dividing the operating income by the total assets and multiplying the result by 100, we obtain the ROI percentage, which is a measure of the division's profitability and efficiency in utilizing its assets.

To know more about return on investment:

https://brainly.com/question/28622693

#SPJ4

--The given question is incomplete, the complete question is given below " Anderson Ceramics, a division of Alderman Corporation, has an operating income of $82,000 and total assets of $410,000. The required rate of return for the company is 11%. The company is evaluating whether it should use return on investment (ROI) or residual income (RI) as a measurement of performance for its division managers. The manager of Anderson Ceramics has the opportunity to undertake a new project that will require an investment of $164,000. This investment would earn $21,320 for the company. Read the requirements. 1. What is the original return on investment (ROI) for Anderson Ceramics (before making any additional investment)? 2. What would the ROI be for Anderson Ceramics if this investment opportunity were undertaken? Would the manager of the Anderson Ceramics division want to make this investment if she were evaluated based on ROI? Why or why not?  3. determine the formula to calculate the ROI. Operating income Total assets ROI (Enter the percentage to two decimal places.) The original return on investment (ROI) for Anderson Ceramics is 20 %. give the answer in parts."--

LuxUnder, Ltd., sells a line of women’s knit pyjamas. The firm sells about 30,000 pairs a year at an average price of $20 each. Fixed costs equal $100,000, and total variable costs are $180,000. The production department has estimated that a 10 per cent increase in output would not affect fixed costs but would reduce average variable cost by 10 cents. The marketing department advocates a price reduction of 5 per cent to increase sales, total revenues, and profits. The arc elasticity of demand with respect to prices is estimated at −2.
Evaluate the impact of the proposal to cut prices on total revenue, total cost, and total profits.

Answers

Given that LuxUnder Ltd. sells a line of women's knit pajamas, the company sells approximately 30,000 pairs a year for an average price of $20 each. The fixed cost is $100,000, and the total variable cost is $180,000.

The production department estimates that a 10% increase in output would not affect fixed costs but would reduce the average variable cost by 10 cents. The marketing department recommends a 5% price reduction to increase sales, total revenues, and profits.

The arc elasticity of demand concerning prices is estimated to be -2. We must now assess the potential impact of the pricing cut on total revenue, total cost, and total profits.

With a 5% price reduction, the new price of each pair of women's knit pajamas is $19 per unit. This will result in the following:New price of each unit = $20 - $1 = $19Per unit, the new quantity demanded = original quantity demanded × (1 + % change in quantity demanded) = 30,000 × 1.05 = 31,500 units total Revenue = Price × Quantity, so we have: Original Total Revenue = $20 × 30,000 = $600,000

New Total Revenue = $19 × 31,500 = $598,500

Therefore, the impact of the price cut on total revenue will result in a decrease in revenue by $1,500.

Average variable cost is reduced by 10 cents, so we have:Original variable cost per unit = Total variable costs / Quantity = $180,000 / 30,000 = $6 per unit

New variable cost per unit = $6 - $0.10 = $5.90 per unit

Therefore, the new total cost per unit is:New Total cost per unit = $100,000 + ($5.90 × 31,500) = $283,500

Total profit is the difference between total revenue and total cost, so we have:Original Total Profit = Total Revenue – Total Cost= $600,000 - $280,000 = $320,000

New Total Profit = $598,500 - $283,500 = $315,000

Therefore, the proposal to cut prices will result in a decrease in total profit of $5,000.

To learn more about variable cost, visit here

https://brainly.com/question/31811001

#SPJ11

T/F: The determination and execution of fiscal policy (tax authority) resides in the authority of the Federal Reserve System rather than in the U.S. Congress.

Answers

The statement "The determination and execution of fiscal policy (tax authority) resides in the authority of the Federal Reserve System rather than in the U.S. Congress" is FALSE.

Fiscal policy involves the decisions made by the government regarding taxation, government spending, and borrowing in order to achieve economic goals.

The US Congress has the authority to determine and execute fiscal policies. They are responsible for setting tax rates and making decisions about how government funds are spent, which affects the economy's overall performance and growth.

On the other hand, the Federal Reserve System is responsible for monetary policy, which includes controlling the supply of money in the economy and adjusting interest rates to stabilize prices, employment, and growth

Learn more about Fiscal policy at;

https://brainly.com/question/13982103

#SPJ11

The demand and supply model can explain the existing levels of
prices, wages, and rates of return. Demand and supply can also be
used to explain how economic events will cause changes in prices,
wages

Answers

The demand and supply model explains current price levels, wages, and rates of return, as well as how economic events affect changes in prices and wages.

The demand and supply model analyzes the interaction between buyers and sellers in a market. It shows that prices, wages, and rates of return are determined by the balance between demand and supply. When demand exceeds supply, prices and wages tend to increase. Conversely, when supply exceeds demand, prices and wages tend to decrease.

Moreover, the model helps explain how economic events impact prices and wages. Changes in consumer income or production costs can shift demand or supply curves, leading to corresponding changes in prices and wages. For example, an increase in consumer income can raise demand, resulting in higher prices and potentially increased wages.

To know more about supply model, click here.

https://brainly.com/question/28235107

#SPJ4

why an organization might not experience financial improvement after implementing an abc system with hopes of process improvement and cost reductions

Answers

An organization might not experience financial improvement after implementing an ABC (Activity-Based Costing) system due to factors such as inaccurate cost allocations, inefficient process implementation, inadequate data analysis, resistance to change, or external market factors affecting revenue and costs.

Implementing an ABC system requires accurate allocation of costs to activities, but if the organization fails to accurately identify and allocate costs, the system may not provide reliable information for decision-making. Additionally, if the organization does not effectively implement process improvements based on the ABC system's insights, the expected cost reductions may not materialize. Insufficient analysis of the data collected from the system can also lead to ineffective decision-making. Furthermore, resistance to change within the organization can hinder the successful implementation of process improvements. Lastly, external factors such as changes in the market, competition, or economic conditions can impact revenue and costs, potentially offsetting any expected financial improvements from the ABC system.

Learn more about financial here:

https://brainly.com/question/32292990

#SPJ11

The manager of a medium-sized business was heard to remark: "My business is one which involves too many uncertainties for a budget to be of any use to me Required: Discuss any FOUR (4) benefits of preparing budgets for an organisation. (12 marks) Question 3 (Part B) Best Athletics Ltd, which develops and runs athletics training programs for primary schools, has budgeted revenue for the first 6 months of 2022 as follows: Month January Budgeted revenue $10 000

Answers

Business planning is the cycle by which an association's chiefs sort out the best guide for development and record their arrangement for progress.

The process of business planning involves determining the company's internal strengths and weaknesses, increasing efficiency, figuring out how it will compete with rival businesses in the future, and establishing measurable progress milestones.

A written document known as a business plan contains an outline as well as the resources required to succeed.

1) Planning can assist you with defining long haul monetary objectives, hold you back from overspending, assist with closing down dangerous ways of managing money, and that's just the beginning.

works with you to achieve long-term objectives.can keep you from spending too much.Can Facilitate Retirement Savings.Assists You With getting ready for Crises.can reveal habits of spending.The primary concern.

2)  The second part is incomplete.

To know more about Business Planning,

brainly.com/question/28340724

#SPJ4

27 Skipped eBook Lexi Company budgets unit sales of 1,190,000 in April, 1,280,000 in May, 270,000 in June, and 1,660,000 in July. Beginning inventory on April 1 is 238,000 units, and the company wants

Answers

The required production in May is 674,000 units.Given that Lexi Company budgets unit sales of 1,190,000 in April, 1,280,000 in May, 270,000 in June, and 1,660,000 in July. Beginning inventory on April 1 is 238,000 units, and the company wants to maintain an ending inventory equal to 60% of the next month's budgeted unit sales.

We are to determine the required production in units for April and May respectively.Let the required production in units for April be xApril sales are 1,190,000 units. Since the beginning inventory on April 1 is 238,000 units, the company will have to produce more units to have 60% of the next month's budgeted sales in inventory.

Thus, the required ending inventory on April 30 is 1,280,000 × 60% = 768,000 unitsHence, the required production in April will be:

Beginning inventory on April 1 + Production - Sales = Ending inventory on April 30.238,000 + x - 1,190,000 = 768,000x = 1,122,000 unitsThus, the required production in April is 1,122,000 units.

For May, the beginning inventory is the ending inventory for April, which is 768,000 units. Also, since the company wants to maintain an ending inventory equal to 60% of the next month's budgeted unit sales, the required ending inventory on May 31 will be 270,000 × 60% = 162,000 units.

Hence, the required production in May will be:Beginning inventory on May 1 + Production - Sales = Ending inventory on May 31.768,000 + y - 1,280,000 = 162,000y = 674,000. Thus, the required production in May is 674,000 units.

For more question on inventory

https://brainly.com/question/29636800

#SPJ11

Explain the impact of inflation in the host country on a foreign subsidiary's net present value (NPV) analysis
Explain two (2) ways that multi-national companies (MNCs) can do to minimize the impact of exchange
rate swings on their foreign projects.

Answers

Impact of inflation on a foreign subsidiary's NPV analysis is Inflation in the host country has an adverse effect on the foreign subsidiary's NPV analysis.

The cash flows from the foreign subsidiary may be reduced, which may also decrease the present value of future cash flows.Two ways that multi-national companies (MNCs) can do to minimize the impact of exchange rate swings on their foreign projects are as follows:

1. HedgingUsing a variety of derivatives to protect against future price movements in the foreign currency is referred to as hedging. MNCs utilize this technique to protect themselves against the adverse impact of currency fluctuations on their overseas projects.

2. Leading and laggingLeading is the process of speeding up the inflows and outflows of funds in a foreign currency. When a company expects its domestic currency to weaken in the future, this is known as leading. Lagging, on the other hand, involves delaying the inflows and outflows of funds in a foreign currency. When a company anticipates that its domestic currency will strengthen in the future, it uses this approach.

Learn more about NPV: https://brainly.com/question/16999673

#SPJ11

U = x₁ + x2. P1 = 1 and p2 = 2. Income (m) is 200. The utility optimizing quantity of x₁ is: (write your answer to two decimal places, e.g., 1.23)

Answers

The utility optimizing quantity of x₁ is 100.

The utility function is U = x₁ + x₂.

The prices are P₁ = 1 and P₂ = 2.

The income is m = 200.

To optimize utility, we need to allocate the budget in a way that maximizes the utility function while satisfying the budget constraint.

The budget constraint equation is:

P₁x₁ + P₂x₂ = m

Substituting the given values:

1x₁ + 2x₂ = 200

We can rearrange the equation to solve for x₁:

x₁ = (200 - 2x₂) / 1

To find the utility-optimizing quantity of x₁, we need to differentiate the utility function with respect to x₁ and set it equal to zero.

dU/dx₁ = 1 - 0 = 1

Since the derivative is constant and positive, the utility function is maximized when x₁ is maximized.

Now, substitute the value of x₁ into the budget constraint equation and solve for x₂:

1x₁ + 2x₂ = 200

1(100) + 2x₂ = 200

100 + 2x₂ = 200

2x₂ = 100

x₂ = 50

Therefore, the utility-optimizing quantity of x₁ is 100.

To learn more about utility: https://brainly.com/question/14729557

#SPJ11

5) Suppose that YourCo has the following ownership structure: Founders: 80,000 shares (Common Stock) Angel: 20,000 shares (Preferred Convertible Stock) The Angel has invested $100,000 with a 5X liquidation preference with full participation and no cap. If the company is sold for US1,000,000, how much will the founders get? A) $ 800,000 B) $ 700,000 C) $ 600,000 D) $ 500,000 E) $ 400,000

Answers

The amount that the founders will get, given the amount the company is sold for would be E. $ 400, 000.

How to find the amount to the founders ?

Calculate the total liquidation preference for the Angel's investment:

Liquidation Preference = Investment Amount x Liquidation Preference

Liquidation Preference = $ 100,000 x 5

Liquidation Preference = $ 500,000

Proceeds after satisfying the liquidation preference:

Remaining Proceeds = Sale Price - Liquidation Preference

Remaining Proceeds = $ 1,000,000 - $500,000

Remaining Proceeds = $ 500,000

The participation ratio is calculated as follows:

Participation Ratio = Angel Shares / Total Shares

Participation Ratio = 20,000 / (20,000 + 80,000)

Participation Ratio = 0. 2 or 20 %

Founder's proceeds is:

= 500, 000 - ( 500, 000 x 0. 2 )

= $ 400, 000

Find out more on Founder's proceeds at https://brainly.com/question/13845583

#SPJ4

Problem 2 (Consignment Sales) On May 3, 2020, Whirlpool Company consigned 80 freezers, costing $400 each, to Igloo Company. The cost of shipping the freezers amounted to $670 and was paid by Whirlpool Company. On December 31, 2020, a report was received from the consignee, indicating that 40 freezers had been sold for $600 each. Remittance was made by the consignee for the amount due after deducting a commission of 5%, advertising of $150, and total installation costs of $260 on the freezers sold. Instructions (a) Compute the inventory value of the units unsold in the hands of the consignee. (4 Points) (b) Compute the profit for the consignor for the units sold. (9 Points) (c) Compute the amount of cash that will be remitted by the consignee. (6 Points)

Answers

a) the inventory value of the unsold units in the hands of the consignee is $16,000. b)  the profit for the consignor for the units sold is $22,390. c) the amount of cash that will be remitted by the consignee is $22,390.

Answer to the questions

(a) To compute the inventory value of the units unsold in the hands of the consignee, we need to determine the cost of the unsold units.

Total cost of consigned freezers = Cost per unit * Number of units

Total cost of consigned freezers = $400 * 80 = $32,000

Since 40 freezers were sold, the number of unsold units is 80 - 40 = 40 units.

Inventory value of unsold units = Cost per unit * Number of unsold units

Inventory value of unsold units = $400 * 40 = $16,000

Therefore, the inventory value of the unsold units in the hands of the consignee is $16,000.

(b) To compute the profit for the consignor for the units sold, we need to calculate the net amount received after deducting the commission, advertising costs, and installation costs from the selling price.

Selling price per unit = $600

Commission = 5% of ($600 * 40) = 0.05 * $24,000 = $1,200

Advertising costs = $150

Installation costs = $260

Profit for the consignor = Selling price - Commission - Advertising costs - Installation costs

Profit for the consignor = ($600 * 40) - $1,200 - $150 - $260 = $24,000 - $1,200 - $150 - $260 = $22,390

Therefore, the profit for the consignor for the units sold is $22,390.

(c) To compute the amount of cash that will be remitted by the consignee, we need to subtract the commission, advertising costs, and installation costs from the selling price.

Remittance amount = Selling price - Commission - Advertising costs - Installation costs

Remittance amount = ($600 * 40) - $1,200 - $150 - $260 = $24,000 - $1,200 - $150 - $260 = $22,390

Therefore, the amount of cash that will be remitted by the consignee is $22,390.

Learn more about inventory value at https://brainly.com/question/30481665

#SPJ4

6. Within-firm risk and beta risk Understanding risks that affect projects and the impact of risk consideration WSP Inc. is involved in a wide range of unrelated projects. The company will pursue any project that it thinks will create value for its stockholders. Consequently, the risk level of the company's projects tends to vary a great deal from project to project. If WSP Inc. does not risk-adjust its discount rate for specific projects properly, which of the following is likely to occur over time? Check all that appl The firm will increase in value The firm could potentially reject projects that provide a higher rate of return than the company should require The firm's overall risk level will increase When a project involves an entirely new product line, the firm may be able to obtain betas from to calculate a weighted average cost of capital (WACC) for its new product line Consider the case of another company. Davis Printing is evaluating two mutually exclusive projects. They both require a $3 milion investment today and have expected NPVs of $600,000. Management conducted a full risk analysis of these two projects, and the results are shown below Risk Measure Standard deviation of project's expected NPVs Project beta Correlation coefficient of project cash flows (relative to the firm's existing projects) Project A Project B $240,000 $120,000 0.7 0.5 Which of the following statements about these projects' risk is correct? Check all that apply Project B has more market risk than Project A. Project B has more corporate risk than Project A. Project A has more stand-alone risk than Project B Project A has more corporate risk than Project B

Answers

When WSP Inc. does not properly risk-adjust its discount rate for specific projects, several outcomes are likely to occur over time. First, the firm could potentially reject projects that provide a higher rate of return than the company should require. This means that projects with good potential for value creation may be overlooked or dismissed due to the failure to accurately assess and account for their risks. As a result, the firm may miss out on valuable investment opportunities.

Second, the firm's overall risk level will increase. By not properly considering and adjusting for project-specific risks, the firm's portfolio of projects may become skewed towards riskier ventures. This lack of risk management can lead to an increase in the overall risk profile of the company, exposing it to greater uncertainties and potential financial losses.

It is important for companies like WSP Inc. to carefully analyze and evaluate the risks associated with each project to make informed decisions. This includes appropriately adjusting the discount rate to reflect the project's risk level, considering factors such as market conditions, industry dynamics, and project-specific risks.

Regarding the case of Davis Printing and its two mutually exclusive projects, we can assess their risk characteristics based on the provided information.

Project A has a standard deviation of expected NPVs of $240,000, while Project B has a lower standard deviation of $120,000. This indicates that Project A has more stand-alone risk than Project B, as it exhibits greater variability in its expected NPVs.

Project B, on the other hand, has a higher project beta of 0.7 compared to Project A's beta of 0.5. This implies that Project B has more market risk than Project A, as it is more sensitive to market fluctuations.

However, the information provided does not allow us to conclude which project has more corporate risk. Corporate risk refers to the risk associated with the overall operations and financial position of the company. It is influenced by factors such as diversification, financial leverage, and management capabilities, which are not explicitly mentioned in the given data.

In summary, based on the provided information, we can determine that Project A has more stand-alone risk and Project B has more market risk. The comparison of corporate risk between the two projects cannot be determined without additional information.

To know more about Market visit-

brainly.com/question/25492268

#SPJ11

Answer each of the following questions as either true or false. For a statement to be "true," it must always be true. If there is at least one case where the statement is not true (or if you need more information to be sure), answer "false." You must justify each answer with an appropriate explanation or counterexample (which may include a relevant diagram). (a) (4) A perfectly competitive firm has marginal function MC(q) = 4+6q, ces an output price of p= $26, and chooses to produce q- 4 units. In order to maximize profits, this firm would increase output. (b) (4) Consider two firms, Airbus and Boeing, with the following two production functions: f(L,K) = min{L, K) and f(L, K) = [min{L, K}]. For example, if Boeing hires four workers and four pieces of capital, the firm would be able to produce two airplanes as opposed to Airbus' four with the same inputs. If both firms face the same inputs costs (wage w and rental rate r), then the ratio of capital to labor (K/L) that each firm uses will be the same. (c) (4) Heather consumes running shoes and packs of energy gel. If energy gel is an inferior good. and becomes more expensive, then the income effect of that price change would induce Heather to consume more energy gel. (d) (4) A firm can make widgets using capital and labor according to the production function f(K, L) 100L+0.5K. Denote the wage w and the rental rate on capital r. If r is suffi- ciently high, the firm will not hire any capital, no matter how many widgets it wants to produce.

Answers

(a) The given statement "In order to maximize profits, this firm would increase output" is False.

(b) The given statement "If both firms face the same inputs costs (wage w and rental rate r), then the ratio of capital to labor (K/L) that each firm uses will be the same" is True.

(c) The given statement "If energy gel is an inferior good. and becomes more expensive, then the income effect of that price change would induce Heather to consume more energy gel" is False.

(d) The given statement "If r is suffi- ciently high, the firm will not hire any capital, no matter how many widgets it wants to produce" is True.

(a) False. In a perfectly competitive firm, the profit-maximizing condition is to produce the quantity where marginal cost (MC) equals the market price (p). In this case, MC(q) = 4 + 6q and the firm produces q = 4 units. If the firm wants to maximize profits, it would need to compare the marginal cost at q = 4 to the price of $26. If MC(q=4) is greater than $26, the firm should decrease output, not increase it.

(b) True. The production functions for Airbus and Boeing are given as f(L, K) = min{L, K} and f(L, K) = [min{L, K}], respectively. If both firms face the same input costs (wage w and rental rate r), they would aim to minimize the use of inputs to produce the desired output. Therefore, the ratio of capital to labor (K/L) would be the same for both firms.

(c) False. If energy gel is an inferior good, it means that as Heather's income increases, she would consume less of it. If the price of energy gel becomes more expensive, the income effect would induce Heather to reduce her consumption of energy gel, not increase it.

(d) True. The firm's production function is f(K, L) = 100L + 0.5K. If the rental rate on capital (r) is sufficiently high, it would make the cost of using capital more expensive. In this case, the firm may find it more cost-effective to rely solely on labor (L) for production and not hire any capital (K), regardless of the desired quantity of widgets to produce.

To know more about perfectly competitive firm, refer to the link below:

https://brainly.com/question/27419666#

#SPJ11

What is the multi-stage DDM applied price of a stock which is expected to begin paying a $3 dividend 6 years from now. The firm is expected to grow dividends by 15% per year for the next four years after that, followed by a constant growth rate of 4% thereafter forever. Assume that investors require a rate of return of 16% for this firm’s common shares.

$25.75

$16.36

$11.23

$18.75

Answers

The multi-stage DDM applied price of the stock is approximately $18.08. note: none of the provided options is correct.

To calculate the multi-stage DDM applied price of a stock, we need to determine the present value of all future dividends. In this case, we have different growth rates for the dividends over two periods.

First, we calculate the present value of dividends for the initial four years of 15% growth:

D1 = D0 * (1 + g1) = $3 * (1 + 0.15) = $3.45

D2 = D1 * (1 + g1) = $3.45 * (1 + 0.15) = $3.97

D3 = D2 * (1 + g1) = $3.97 * (1 + 0.15) = $4.57

D4 = D3 * (1 + g1) = $4.57 * (1 + 0.15) = $5.26

Next, we calculate the present value of dividends after the fourth year with a constant growth rate of 4%:

D5 = D4 * (1 + g2) = $5.26 * (1 + 0.04) = $5.47

D6 = D5 * (1 + g2) = $5.47 * (1 + 0.04) = $5.69

Now, we calculate the present value of all these dividends using the required rate of return of 16%:

PV = (D1 / (1 + r)^1) + (D2 / (1 + r)^2) + (D3 / (1 + r)^3) + (D4 / (1 + r)^4) + (D5 / (1 + r)^5) + (D6 / (1 + r)^6)

= ($3.45 / (1 + 0.16)^1) + ($3.97 / (1 + 0.16)^2) + ($4.57 / (1 + 0.16)^3) + ($5.26 / (1 + 0.16)^4) + ($5.47 / (1 + 0.16)^5) + ($5.69 / (1 + 0.16)^6)

= $2.97 + $3.10 + $3.18 + $3.17 + $2.93 + $2.73

= $18.08 none of the provided options is correct.

For more such question on stock. visit :

https://brainly.com/question/26128641

#SPJ8

labor groups represent ________ of the total number of interest groups registered to lobby in washington.

Answers

Labor groups represent a significant portion of the total number of interest groups registered to lobby in Washington.

While the exact percentage may vary over time, labor groups have historically held substantial influence and engaged in lobbying activities to advocate for the rights and interests of workers. These groups include labor unions, trade associations, and other organizations that represent workers across various industries.

Given their focus on labor-related issues such as wages, working conditions, and employment rights, labor groups play a crucial role in shaping policy discussions and influencing legislative decisions in Washington, D.C. Their presence and collective voice contribute to the overall landscape of interest group lobbying in the capital.

Learn more about Washington, D.C.

https://brainly.com/question/1748064

#SPJ4

"Risk Assessment Matrix & Risk Based Audit Plan (9 marks: 3 marks for part A; 2 each for parts B to D)-response not to exceed 2 pages (double-spaced/12-font):
Robertson Iron & Steel Powders (RISP) is a major producer of iron and steel powders, with sales in more than 25 countries throughout the world. Its product lines serve all major fields of application: manufacturing parts for the automotive, appliance, electric tool, and lawn and garden industries; welding and alloying; reprography; and the food industry. RISP was formed in 1968 to manufacture iron powder from the high-purity iron produced by another division of the group. It is owned by International Iron Inc., one of the largest minerals and metals companies in the world, which has its bead office in the United States. The mission of RISP is to meet and exceed customers’ specifications through a total quality system. The company constantly puts new products on the market to meet the evolving requirements of the industry.
The company has had several problems in the past in meeting the environmental requirements for its industrial waste. The environment department and ecological groups have also complained that the company has polluted the river and caused environmental damage during the last decade. Management’s relationship with its employees and their union have always been tense. The company is thinking about closing its plant and outsourcing its production to vendors located in South America. This option would involve transferring some technological knowledge to vendors and increasing transportation costs, but would enable the company to reduce toxic waste in Canada.
Required :
The president of the company is aware that there are some risks associated with the decision to outsource the production to South America. To help him make a decision, he has asked you, the director of the management audit department, to prepare some discussion notes to assist in the decision and subsequent control should the decision be made. Those notes should:
a) Create a Risk Assessment Matrix (score 9: High; 5: Medium; 1: Low) to identify and prioritize the risks that RISP will be exposed to if it decides to outsource its production to South America.
b) Provide an example of 4 Responses an organization can take toward a risk. List the Responses; for each of the risks you identified in part A (above) briefly describe a Response & Example that could be applied to it.
c) State the scope and the objectives for a management audit of RISP’s manufacturing activities in South America, if it decides to outsource its production.
d) State the criteria to use for evaluating RISP’s efforts to address each risk, if it decides to outsource its production."

Answers

a) Risk Assessment Matrix: Environmental compliance (9, 9), Technological knowledge transfer (7, 6), Transportation costs (5, 7), Quality control (4, 5), Employee relations (3, 9).

b) Responses: Environmental standards, knowledge transfer protocols, logistics optimization, robust quality control.

a) Chance Evaluation Framework:

The dangers related with re-appropriating creation to South America for RISP can be surveyed and focused on utilizing the accompanying Gamble Evaluation Grid:

Ecological consistence: High probability (9) and high effect (9) risk.

Move of innovative information: Medium probability (7) and medium effect (6) risk.

Expanded transportation costs: Medium probability (5) and high effect (7) risk.

Quality control issues: Low probability (4) and medium effect (5) risk.

Representative and association relations: Low probability (3) and high effect (9) risk.

b) Reactions to recognized gambles:

1. Ecological consistence issues: Lay out severe natural guidelines and checking conventions for merchants. Model: Execute normal reviews to guarantee consistence with natural guidelines.

2. Move of innovative information: Execute information move cycles and arrangements to safeguard protected innovation. Model: Foster thorough preparation programs for sellers' representatives and lay out non-exposure arrangements.

3. Expanded transportation costs: Improve strategies and arrange positive transportation contracts. Model: Investigate mass delivery choices, vital appropriation communities, and long haul contracts with solid transportation suppliers.

4. Quality control issues: Carry out strong quality control cycles and provider execution checking. Model: Lead normal quality reviews, perform investigations at merchant offices, and lay out clear quality principles and execution measurements.

c) Degree and goals for an administration review:

Scope: The administration review will zero in on RISP's assembling exercises in South America, explicitly connected with the rethought creation.

Targets:

1. Evaluate the adequacy of seller determination and a reasonable level of investment processes.

2. Assess the sufficiency of information move systems and security of licensed innovation.

3. Survey the execution of value control measures at merchant offices.

4. Analyze consistence with natural guidelines and waste administration rehearses.

5. Evaluate the effect of the rethinking choice on worker and association relations.

d) Standards for assessing risk relief endeavors:

1. Natural consistence issues: Customary checking, archived consistence records, nonattendance of ecological occurrences, and positive input from ecological specialists.

2. Move of mechanical information: Fruition of information move exercises, consented to arrangements safeguarding licensed innovation, merchant representatives' capability in moved innovation, and nonappearance of innovation holes or abuse.

3. Expanded transportation costs: Accomplishment of cost decrease targets, enhanced coordinated factors processes, proof of ideal transportation contracts, and productive inventory network activities.

4. Quality control issues: Consistence with quality principles, nonappearance of huge item reviews or client objections, positive criticism from clients in regards to item quality, and convenient goal of any quality-related issues.

Note: The reaction gave is a succinct variant without a table, and the genuine gamble evaluation, reactions, degree, targets, and measures might differ in light of the particular setting and prerequisites of RISP.

To learn more about Risk Assessment Matrix, refer:

https://brainly.com/question/29531811

#SPJ4

Question 1 of 16 4 points Save Answ Kingdom Corporation has the following: - Preferred stock, $10 par value, 7%, 50,000 shares issued $500,000 Common stock, $15 par value, 300,000 shares issued and ou

Answers

The total par value of Kingdom Corporation's common stock is $4,500,000.

The common stock of Kingdom Corporation has a par value of $15 per share, and there are 300,000 shares issued and outstanding. Par value represents the stated value of a share of stock mentioned in the corporation's charter, and it is unrelated to the market price or the company's market value. In this case, to determine the total par value of the common stock, we multiply the par value per share ($15) by the total number of shares (300,000), resulting in $4,500,000. The par value is an arbitrary value and serves as the face value of a share of stock. It should be noted that the company can modify the par value of its stock at any time, which would impact the stated capital of the company. Therefore, the total par value of Kingdom Corporation's common stock is $4,500,000.

In conclusion, the total par value of Kingdom Corporation's common stock is $4,500,000.

For more such questions on par value:

https://brainly.com/question/25765493

#SPJ11

I am craving for pizza and fish tacos. I have 20 dollars in hand. The price of a pizza slice (P) 4 dollars while that of one fish taco (T) is 5 dollars. Derive my budget constraint.
10T+8P=20
4P+5T=20
4P+4T=20
5P+5T=20

Answers

The budget constraint can be expressed as follows:4P + 5T = 20

This equation shows the different combinations of pizza slices (P) and fish tacos (T) that can be bought with $20. The slope of this line is -4/5, which means that for every 5 fish tacos you buy, you have to give up 4 pizza slices and vice versa.

To derive the budget constraint, you need to find the different combinations of pizza slices and fish tacos that you can buy with $20. You can represent the number of pizza slices as P and the number of fish tacos as T.

The intercepts of this line are as follows:To find the intercept on the P-axis, set T = 0:

4P + 5(0) = 204

P = 20

P = 5

To find the intercept on the T-axis, set P = 0:

4(0) + 5T = 205

T = 20

T = 4

Therefore, the budget constraint is:4P + 5T = 20.

Learn more about equation at;

https://brainly.com/question/4428455

#SPJ11

Dodo's Used Cars uses the specific identification method of costing inventory. During March, Dodo purchased three cars for $8,000, $10,000, and $13,000, respectively. During March, two cars are sold for $11,000 each. Dodo determines that at March 31, the $13,000 car is still on hand. What is Dodo's gross profit for March? Select one: a. $4,000. b. $3,000. c. no correct answer d. $9,000. e. $1,000. 00

Answers

Dodo's gross profit for March is b. $3,000.

Dodo's gross profit for March can be calculated by subtracting the cost of goods sold from the total sales. In this case, two cars were sold for $11,000 each, resulting in total sales of $22,000. The cost of goods sold can be determined by adding up the costs of the cars that were sold, which amounts to $8,000 + $10,000 = $18,000. Therefore, the gross profit for March is $22,000 - $18,000 = $4,000.

However, it's important to note that the question states that the $13,000 car is still on hand at the end of March. This means that it should not be included in the cost of goods sold calculation. Therefore, the correct gross profit for March is $4,000 - $13,000 = $3,000. Option b is the correct answer.

You can learn more about gross profit at

https://brainly.com/question/942181

#SPJ11

Which security has a higher effective annual interest rate?
a. A 3-month T-bill selling at $97,645 with par value $100,000.
b. A coupon bond selling at par and paying a 10% coupon semiannually.
Why?

Answers

A coupan bond's effective yearly interest rate is greater.The price of bonds is significantly influenced by the coupon rate on a bond in comparison to current market interest rates. Bond prices increase when a coupon is more than the current interest rate; prices decrease when a coupon is lower.

Investors are more drawn to bonds with higher coupon rates because they offer higher yields. The total amount of annual coupons paid is added up to determine the coupon rate, which is then divided by the bond's face value. Bonds with lower coupon rates typically have a larger interest rate risk than bonds with higher coupon rates of the same type.The coupon rate is calculated by dividing the annual interest paid by the bond's par value.

To learn more about coupan bond, click here.

https://brainly.com/question/31517598

#SPJ4

Other Questions
Use standard Maclaurin Series to find the series expansion of f(x) = 4e ln(1 + 8x). Question 6 of 6 View Policies Current Attempt in Progress < (a) Net income On January 1, 2020, Blue Inc. had cash and common stock of $62,340. At that date, the company had no other asset, liability, evaluate the given integral by changing to polar coordinates d x^2yda where d is the top half of the disk with center the origin and radius 5 Solutions to the moral hazard in equity contracts include all of the following EXCEPT:a. the use of debt contracts. b. the use of financial intermediaries. c. government ownership of resources. d. government regulations to increase information. Let S = {(x, y, z) R3 | x2 + y2 + z2 = 1} be the unit sphere in R3, and let G be the group of rotations (of R3) about the z-axis. 9 (1) Find all the fixed points in S, i.e., s E S such that gs = s for every g eG. (2) Describe the set of orbits S/G in S under the G-action (Hint: express each orbit in terms of z). "A protein is 300 amino acids long. Which of the following could be the number of nucleotides in the section of DNA that codes for this protein? (Remember: DNA is double-stranded.)"The correct answer is 1800.I thought that each single DNA strand coded for different proteins and the other complementary strand coded for a different protein since each would result in different amino acids during translation. so therefore I originally thought the answer might be 900? Can someone help explain this for me? The estimated regression line and the standard error are given. Sick Days=14.3101620.2369(Age) se=1.682207 Find the 90% confidence interval for the average number of sick days an employee will take per year, given the employee is 28. Round your answer to two decimal places.Employee 1 2 3 4 5 6 7 8 9 10Age 30 50 40 55 30 28 60 25 30 45Sick Days 7 4 3 2 9 10 0 8 5 2 The economy next year will be either in a boom or in a recession. We have the following data about the payoffs of two assets (in pounds): Asset 1 Asset 2 State 1: boom 10 5 State 2: recession 4 Price today 6 4 We will consider different values of c (the payoff of asset 2 in a recession) in the questions below. a) Suppose c = 5. Find the prices of the two Arrow-Debreu securities. Is this market complete? [8 marks] b) For which value(s) of c is the market NOT complete? Is there an arbitrage opportunity if the market is not complete? If so, construct the arbitrage portfolio and compute the profit from your strategy. [7 marks] C) Now return to the assumption that c = 5. What is the risk-free rate of retum in this economy? [4 marks] d) Continue to assume that c = 5, and suppose that asset 1 is a non-dividend paying stock. A dealer quotes a price of 7 for a 1-year futures contract on the stock. Is there an arbitrage opportunity? If so, construct the arbitrage portfolio and compute the profit from your strategy. To practice Problem-Solving Strategy 27. 2 Motion in Magnetic Fields. An electron inside of a television tube moves with a speed of 2. 74107 m/s. It encounters a region with a uniform magnetic field oriented perpendicular to its trajectory. The electron begins to move along a circular arc of radius 0. 190 m. What is the magnitude of the magnetic field?Part CCalculate the magnitude F of the force exerted on the electron by a magnetic field of magnitude 8. 21104 T oriented as described in the problem introduction. Express your answer in newtons Solve the problem. The pH of a chemical solution is given by the formula pH = -log10[H] where (H+) is the concentration of hydrogen ions in moles per liter. Find the pH if the [H +1 = 8.6 x 10-3 2.07 2.93 3.93 03.07 A potential new project has a projected new income of $40,000 and depreciation expense of $6,000. What is the net cash flow that should be used when analyzing whether to go forward with the project.$40,000$34,000$46,000$6,000 The advent of omni-channels may be swinging the power equations between manufacturers and retailers as:a. Retailers are gaining power by introducing private label brandsb. Manufacturers are reclaiming power since they have more avenues to reach end-usersc. Neither a nor b above is true Which of the following is NOT TRUE, among the possible challenges faced by Central Bankers when setting monetary policy? (Answer accordingly to what the model develop in class would predict) O Price shocks are able to cause long-lasting changes in inflation that need to be addressed by monetary policy. O Computed potential GDP depends on the model used, thus being subject to debate. O If inflation this year is only influenced by demand conditions today, then it will have NO persistence. Investigate how the construction industry in Oman has helped in the growth of the Oman Economy and write a report of around 1000 to 1200 words to illustrate your investigation. You want to make a buffer of pH 8.2. The weak base that you want to use has a pKb of 6.3. Is the weak base and its conjugate acid a good choice for this buffer? Why or why not? 3. A weak acid, HA, has a pka of 6.3. Give an example of which Molarities of HA and NaA you could use to make a buffer of pH 7.0. The area A of the region S that lies under the graph of the continuous function is the limit of the sum of the areas of approximating rectangles.A = lim n [infinity] Rn = lim n [infinity] [f(x1)x + f(x2)x + . . . + f(xn)x]Use this definition to find an expression for the area under the graph of f as a limit. Do not evaluate the limit.f(x) = f(x)= ln(x)/x, 5 x 12 What are conversion rights, information rights, liquidation preference, registration rights, participation, anti-dilution, pay-to-play, vesting? Angie's gross pay for the week is $980. Her deduction for federal income tax is based on a rate of 22%. She has voluntary deductions of $165. Her year-to-date pay is under the limit for OASDI. What is the amount of FICA-Medicare Tax deducted from her pay? Angela makes a material misstatement of fact to Frances, which Frances relies on when she signs Angela's contract. Fraud exists if Angela made the misstatement____ 1. Intentionally 2. Recklessly 3. Carelessly 4. Both A & B 5. A & and B & C 4. Both A & B O 5. A & and B&C 2. Recklessly O 1. Intentionally 3. Carelessly Problem Walk Through M Carlsbad Corporation's sales are expected to increase from $5 million in 2021 to $6 million in 2022, or by 20%. Its assets totaled $2 million at the end of 2021 Carlsbad capacity, it must grow in proportion to projected sales. At the end of 2021, current abilities are $1 million, consisting of $250,000 of accounts payable, $500,000 ofe payable, and $350,000 of accrued abilities. Its profit margin is forecasted to be 4%, and the forecasted retention ratio is 45%. Use the APN equation to forment the additional fun Cartabed will need for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest d 6