Any time the partner mix changes, the old partnership ceases to exist and a new partnership begins is true of ownership changes in a partnership. Option B is correct.
A partnership is an official agreement between two or more people to run a business and share profits. There are many different kinds of partnerships. Specifically, in an organization business, all accomplices share liabilities and benefits similarly, while in others, accomplices might have restricted risk.
A partnership has the following advantages: More than one head is better than none at all. Your company is simple to start, and starting costs are low. The company now has access to more capital. You'll be able to borrow more money.
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Kathleen offers to buy Richard's prize stallion for $10,000 only if a licensed veterinarian certifies that the horse is sound for breeding. After inspecting the stallion, the veterinarian concludes that the stallion has an eye infection, but is otherwise sound for breeding. Kathleen
O does not have to buy the stallion, but must buy another horse of similar value from Richard.
O must still buy the stallion, but may pay a lower price.
O must still buy the stallion.
O does not have to buy the stallion.
Kathleen offers to buy Richard's prize stallion for $10,000 only if a licensed veterinarian certifies that the horse is sound for breeding. After inspecting the stallion, the veterinarian concludes that the stallion has an eye infection, but is otherwise sound for breeding. Kathleen does not have to buy the stallion.
What does this mean?
When Kathleen offers to buy Richard's prize stallion for $10,000 only if a licensed veterinarian certifies that the horse is sound for breeding, she adds a condition that is a precondition for the sale. After inspecting the stallion, the veterinarian concludes that the stallion has an eye infection but is otherwise sound for breeding.
However, the veterinarian's opinion that the stallion has an eye infection implies that the horse is not entirely healthy, and Kathleen is not compelled to purchase the stallion.
As a result, Kathleen is not obligated to buy the stallion.
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For financial reporting purposes, the total amount of product costs incurred to make 4,000 units is closest to: A) $43,400B) $55,400C) $59,400 D) $12,000
The total amount of product costs incurred to make 4,000 units is closest to option $59,400.The correct answer is option (C).
The product's cost would be Direct Material + Direct Labor + Overhead costs (indirect costs) incurred to make the product. The formula for calculating the total amount of product costs incurred is:
Total product cost = Direct materials cost + Direct labor cost + Manufacturing overhead costs
The estimated overhead costs can be calculated by multiplying the predetermined overhead rate with the actual amount of activity. The predetermined overhead rate is the estimated overhead costs divided by the estimated activity level. Using the information, the total cost of producing 4,000 units is:
Total cost = ($15.50 × 4,000) + ($8.50 × 4,000) + [$28,000 + ($3.50 × 4,000)]
= $62,000 + $34,000 + $28,000 + $14,000
= $138,000
Therefore, the total amount of product costs incurred to make 4,000 units is closest to option C) $59,400.
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COFFEEMANIA E ESPRESSO BAR "Coffeemania", a coffee chain (it's real!), has stock shares traded on stock exchange. You would like to check if they are being traded at the right price. The company is planning to pay the following dividends for each share: $2 in 1 year, $6 in 2 years, $7 in 3 years. After that, the dividends are expected to grow at 6% per year, indefinitely. The annual rate of return for this company is 8%. How much should each of Coffeemania' stock shares sell for in today's market?
The stock shares of Coffeemania should sell for approximately $65.91 in today's market.
Short question: What is the fair market value of Coffeemania's stock shares?To determine the fair market value of Coffeemania's stock shares, we need to calculate the present value of the future dividends and the perpetuity growth. The dividends for the first three years are known: $2 in 1 year, $6 in 2 years, and $7 in 3 years. After that, the dividends are expected to grow at a rate of 6% per year indefinitely. We discount each dividend back to present value using the company's annual rate of return of 8%.
Then, we calculate the present value of the infinite stream of dividends using the perpetuity formula. Summing up the present values of the known dividends and the perpetuity value gives us the fair market value of the stock shares, which is approximately $65.91.
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Which statement is true when importing lists into QuickBooks Online? a. When importing lists, check a box to overwrite customers with identical names b. When importing lists, vendors with an identical name will automatically be overwritten c. When importing lists, customer and vendor lists can be combined and imported together d. When importing lists, check a box to overwrite products and services with identical names
When importing lists into QuickBooks Online, the statement that is true is: When importing lists, check a box to overwrite products and services with identical names.
When importing lists into QuickBooks Online, you may need to update some records like customer information, vendors, products, services, chart of accounts, and so on. It's crucial to ensure that you have all your records in order. To prevent data duplication, QuickBooks Online has an overwrite function. If the name of an item in your list is identical to one already in QuickBooks, you can tell QuickBooks to replace the existing entry with the new one you're importing. In this case, check a box to overwrite products and services with identical names, and you're done.
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The chart below gives the data necessary to make a Keynesian cross diagram. Assume that the tax rate is 0.4 of national income, the MPC out of after-tax income is 0.9, investment is 58, government spending is 60, exports are 40, and imports are 0.1 of after-tax income. What is the equilibrium level of national income for this economy?The chart below gives the data necessary to make a Keynesian cross diagram. Assume that the tax rate is 0.4 of national income, the MPC out of after-tax income is 0.9, investment is 58, government spending is 60, exports are 40, and imports are 0.1 of after-tax income. What is the equilibrium level of national income for this economy?
The equilibrium level of national income for this economy is approximately 282.14.
To determine the equilibrium level of national income in this economy, we can use the Keynesian cross diagram. The equilibrium occurs when aggregate expenditures (AE) equal real GDP (Y).
The formula for aggregate expenditures is:
AE = C + I + G + (X - M)
Where:
C = Consumption
I = Investment
G = Government spending
X = Exports
M = Imports
Given the information provided, we can calculate the components of aggregate expenditures as follows:
Tax rate = 0.4
MPC out of after-tax income = 0.9
Investment (I) = 58
Government spending (G) = 60
Exports (X) = 40
Imports (M) = 0.1 of after-tax income
Consumption (C) can be calculated using the formula:
C = (1 - Tax rate) * (MPC out of after-tax income) * Y
Substituting the given values:
C = (1 - 0.4) * 0.9 * Y = 0.54Y
Now, we can substitute the values into the aggregate expenditure formula:
AE = 0.54Y + 58 + 60 + (40 - 0.1Y)
Setting AE equal to Y to find the equilibrium level, we have:
Y = 0.54Y + 58 + 60 + (40 - 0.1Y)
Simplifying the equation:
Y = 0.54Y + 158 - 0.1Y
Combining like terms:
Y - 0.54Y + 0.1Y = 158
Simplifying further:
0.56Y = 158
Dividing both sides by 0.56:
Y = 158 / 0.56 ≈ 282.14
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PCM, Inc., is a direct marketer of computer hardware, software, peripherals, and electronics. In a recent annual report, the company reported that its revenue is "recognized upon receipt of the product by the customer."
My books
My folder
1. Indicate whether PCM's sales terms are FOB shipping point or FOB destination. 20. Assume PCM sold inventory on account to eCOST.com on December 28 that was to be delivered January 3. The inventory cost PCM $29.500 and the selling price was $39.000 What amounts, if any, related to this transaction would be reported on PCM's balance sheet and income statement in December?
2b. Assuming the same information from requirement 2a, what amounts, if any, related to this transaction would
be reported on PCM's balance sheet and income statement in January? 3. Assume PCM purchased electronics on December 29 that were shipped that day and received on January 2 For these goods to be included in PCM's inventory on December 31, would the terms have been under FOB destination or FOB shipping point?
Based on the information provided, PCM's sales terms are FOB shipping point. This means that revenue is recognized upon the shipment of the product by PCM.
2a. Since the inventory was sold to eCOST.com on December 28 and was to be delivered on January 3, the transaction falls under the sales terms of FOB shipping point. Therefore, the following amounts would be reported on PCM's balance sheet and income statement in December:
Balance Sheet:
Inventory: The cost of inventory sold ($29,500) would be deducted from PCM's inventory account.
Income Statement:
Sales Revenue: The selling price of the inventory sold ($39,000) would be recognized as sales revenue.
Cost of Goods Sold: The cost of inventory sold ($29,500) would be recognized as the cost of goods sold expense.
2b. In January, since the goods were already sold and the transaction was completed in December, there would be no amounts related to this specific transaction reported on PCM's balance sheet and income statement in January.
For the goods purchased on December 29 to be included in PCM's inventory on December 31, the terms would have been under FOB shipping point. This means that the ownership and responsibility for the goods transfer to PCM at the point of shipment, which in this case was on December 29. Therefore, the goods would be included in PCM's inventory on December 31.
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Below is the information about companys selling price, fixed cost and variable variable cost per unit= 55$ fixed cost=10000 LLEGE sales price=100$ a) Find BEP of the company in terms of units sold and dollars sold? b) How do you interpret BEPS? c) what are your suggestions to lower BEP?
The company's BEP is 400 units or $40,000.
We can calculate the BEP (break-even point) using the following formula:
BEP (in units) = Fixed costs / (Selling price per unit - Variable cost per unit)
BEP (in units) = $10,000 / ($100 - $55) = 400 units
To calculate the BEP in dollars, we multiply the BEP (in units) by the selling price per unit:
BEP (in dollars) = 400 units × $100 per unit = $40,000
Therefore, the company's BEP is 400 units or $40,000.How to interpret BEP: If a company is producing and selling products at the break-even point, it means that the company is neither making a profit nor incurring losses. It is simply covering its costs. In other words, the company is selling enough units to cover its fixed and variable costs. If the company sells more than the BEP, it will make a profit; if it sells less than the BEP, it will incur losses.
To lower the BEP, the company could either reduce its fixed costs or reduce its variable costs. Here are a few suggestions:Reduce production costs by finding cheaper suppliers, improving production efficiency, or negotiating better deals with suppliers.Reduce fixed costs by cutting down on expenses such as rent, salaries, or marketing costs.Increase the selling price per unit by adding more value to the product or improving the product quality to attract customers and improve the profit margin.
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The asset's book value is determined by deducting the residual value from its original cost O True O False
The asset's book value is not determined by deducting the residual value from its original cost. Therefore, the given statement is false.
The asset's book value is not determined by deducting the residual value from its original cost. The book value of an asset is calculated by subtracting its accumulated depreciation from its original cost.The original cost of an asset represents the amount paid to acquire or produce it, including any additional costs incurred to make it ready for use. On the other hand, the residual value refers to the estimated value of the asset at the end of its useful life or when it is sold or disposed of.To calculate the book value, the accumulated depreciation, which represents the portion of the asset's cost that has been allocated as an expense over its useful life, is subtracted from the original cost.The book value reflects the net value of the asset on the company's balance sheet and is used for financial reporting and valuation purposes.Therefore, the given statement is false.
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hula hoops are produced in a perfectly competitive market. this hula hoop firm is currently producing and selling 100 hula hoops per week. which of the following is true? a. society would be better off if fewer hula hoops were produced because if this firm reduced its production, its profits would increase. b. society would be better off if more hula hoops were produced because at the current level of production price is greater than marginal cost. c. fewer resources should be devoted to hula hoop production because atc is less than price. d. hula hoop production is at the efficient level because atc is minimized.
In a perfectly competitive market, the optimal level of production is where marginal cost equals the market price. The correct option from the given alternatives is B) society would be better off if more hula hoops were produced because at the current level of production price is greater than marginal cost
In a perfectly competitive market, a firm sells its products at the prevailing market price. The firm is a price taker, and it cannot influence the market price by changing the quantity of its output.A perfectly competitive market has the following features:There are numerous buyers and sellers.
The product is homogeneous.A free entry and exit of firms from the market exist.The sellers are price takers, and the buyers are also price takers.In a perfectly competitive market, each firm seeks to maximize its profit.
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CONSUMER BEHAVIOUR Discuss evidence from science about how certain behaviour is affected by the attitudes of others around them, especially in the context of skincare products.
Consumer behaviour refers to the actions and decisions taken by consumers in purchasing and using products or services. Social influence, which involves the attitudes and behaviours of others, plays a significant role in shaping consumer behaviour. In the context of skincare products, social influence can have a considerable impact on consumers' attitudes and behaviours, ultimately affecting their purchasing decisions.
Numerous studies have investigated the effects of social influence on consumer behaviour in the context of skincare products. For example, research has found that people are more likely to adopt healthy skincare habits if they perceive that others around them are also doing so. In contrast, people may be less likely to use skincare products if they perceive that their peers do not value such behaviours.
Another study found that social influence can shape consumers' attitudes towards skincare ingredients. Participants in the study were presented with different skincare products that contained either natural or synthetic ingredients. The researchers found that participants were more likely to rate products more positively if they believed that others around them also valued natural ingredients.
Moreover, studies have also shown that social influence can influence consumers' brand choices. People may be more likely to choose a particular brand of skincare products if they perceive that others around them also use that brand. For example, a study found that people were more likely to purchase a skincare product if it was recommended by someone they know.
In conclusion, scientific evidence demonstrates that social influence can significantly impact consumer behaviour in the context of skincare products. The attitudes and behaviours of others around consumers can influence their perceptions, attitudes, and purchasing decisions. This finding has important implications for marketers and businesses who want to promote their skincare products to consumers and may consider leveraging social influence through social proof or endorsement strategies. Therefore, social influence is an essential factor in understanding consumer behaviour in the context of skincare products.
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The Action Toy Company has decided to manufacture a new train set, the production of which is broken into six steps. The demand for the train is 4, 800 units per 40-hour workweek: This exercise only contains parts b, c, d, e, and f. b) Given the demand, the cycle time for the production of the new train set = seconds (round your response to one decimal place). c) The theoretical minimum number of workstations = (round your response up to the next whole number). d) Using the longest operation time rule, the assignment of tasks to workstations should be: Were you able to assign all the tasks to the theoretical minimum number of workstations? e) The total idle time per cycle for the process = seconds (enter your response as a whole number.) f) The efficiency of the assembly line with 5 workstations = % (enter your response as a percentage rounded to one decimal place). If one used 6 workstations instead of 5, the efficiency of the assembly line would be = % (enter your response as a percentage rounded to one in a Place).
(a). The relationship is shown in the attached image below.
(b). The cycle time for the production of the new train set is 0.5 minutes or 30 seconds.
Production refers to the process of transforming inputs or resources into finished goods or services. It involves various activities such as manufacturing, assembling, processing, and packaging, depending on the nature of the product or service. Production can take place in different sectors, including manufacturing, agriculture, construction, and services.
(c). The theoretical minimum number of workstations are 4 stations.
(d). The relationship is shown in the attached image below.
(e). The total idle time per cycle for the process is 30 seconds.
(f). The efficiency of the assembly line with 5 workstations is 80%.
If one used 6 workstations instead of 5, the efficiency of the assembly line would be 66.67%.
The whole calculation is shown in the attached image below..
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QUESTION 18 A financial advisor tells you that you can make your child a millionaire if you just start saving early. You decide to put an equal amount each year into an investment account that earns 7.5% interest per year, starting on his first birthday. How much would you need to invest each year (rounded to the nearest dollar) to accumulate a million for your child by the time he is 35 years old? O $6,483 O $5,941 O $8,479 O $7,691
The amount that would be invested each year is $6,483. Option A
How to determine the invest amountThe formula for calculating the future value (FV) of an ordinary annuity is expressed as;
FV = P × [(1 + r)ⁿ⁻¹] / r
Given that the parameters of the formula are;
FV is Future valueP is Annual investment amountr is Interest rate per period n is Number of periodsSubstitute the values into the formula, we have;
1,000,000 = P × [(1 + 0.075)³⁵⁻¹] / 0.075
expand the bracket, we get;
1,000,000 = P × [11. 5688] / 0.075
cross multiply the values, we have;
P = 1,000,000 × 0. 075/11. 5688
Multiply the values
P = 75000/11. 5688
P = $6483
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(a) The liabilities of Oriole Company are $104.400 and the stockholders' equity is $266,800. What is the amount of Oriole Company's total assets? Total assets (b) The total assets of Swifty Corporation are $197.200 and its stockholders' equity is $92,800. What is the amount of its total liabilities? Total liabilities
(a) To find the amount of Oriole Company's total assets, we can use the accounting equation:
Total Assets = Liabilities + Stockholders' Equity
Given that the liabilities of Oriole Company are $104,400 and the stockholders' equity is $266,800, we can substitute these values into the equation:
Total Assets = $104,400 + $266,800
Total Assets = $371,200
Therefore, the amount of Oriole Company's total assets is $371,200.
How to determine Swifty Corporation's total liabilities?(b) Similarly, to find the amount of Swifty Corporation's total liabilities, we can rearrange the accounting equation:
Total Liabilities = Total Assets - Stockholders' Equity
Given that the total assets of Swifty Corporation are $197,200 and its stockholders' equity is $92,800, we can substitute these values into the equation:
Total Liabilities = $197,200 - $92,800
Total Liabilities = $104,400
Therefore, the amount of Swifty Corporation's total liabilities is $104,400.
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suppose we want a 99onfidence interval for the average amount spent on books by freshmen in their first year at college. the amount spent has a normal distribution with standard deviation $32.
To construct a 99% confidence interval for the average amount spent on books by freshmen in their first year at college, we need the sample mean and sample size.
To calculate a confidence interval, we need the following information:
Sample mean: This is the average amount spent on books by a sample of freshmen.Sample size: This is the number of freshmen in the sample.Standard deviation: Given as $32, this is the population standard deviation.Using these values, we can calculate the confidence interval using the formula:
Confidence interval = Sample mean ± (Z * (Standard deviation / √Sample size))
For a 99% confidence interval, the Z-score corresponding to a 99% confidence level is approximately 2.58.
To obtain a 99% confidence interval for the average amount spent on books by freshmen in their first year at college, we need the sample mean, sample size, and population standard deviation. By applying the formula and using the appropriate Z-score, we can calculate the upper and lower bounds of the confidence interval.
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Question of Question 6 & Moing to another question will save this response 4 points Kingdom Corporation has the following. -Preferred stock, $10 par value, 8%, 50,000 shares issued $500,000 -Common st
The amount of dividends paid each year for the preferred and common stocks are $4,000 and $0, respectively.
Given the following information, find the amount of dividends paid each year for the preferred and common stocks.The total amount of preferred stock issued is $500,000, having a par value of $10, and an annual dividend rate of 8%. Hence,Preferred stock issued = $500,000 / $10 = 50,000 shares Annual dividend rate = 8%The total amount of common stock issued is $1,000,000, having a par value of $1, and no annual dividend rate is mentioned. Therefore,Common stock issued = $1,000,000 / $1 = 1,000,000 shares Annual dividend rate = 0%The amount of dividends paid each year for the preferred stocks can be calculated as follows:Annual dividend = Preferred stock issued × Annual dividend rate= 50,000 × 8% = $4,000The amount of dividends paid each year for the common stocks can be calculated as follows:Annual dividend = Common stock issued × Annual dividend rate= 1,000,000 × 0% = $0
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The OPEC countries supply about 40% of the world's crude oil. Suppose that OPEC increases its oil production by 5%. Assume that no other oil suppliers change their production and that the price elasticity of demand for crude oil is-0:2. You predict that as a by result of the OPEC's increased production, its total revenue from oil will (increase/decrease) [Write your response here....] by [Type your answer here] %
Total revenue from oil will decrease by 2%.
Given that OPEC countries supply 40% of the world's crude oil and they increase their production by 5%, it implies that their market share would increase to 42% (40% + 5% of 40%). However, due to the price elasticity of demand for crude oil being -0.2, a 1% increase in quantity supplied would result in a 0.2% decrease in price.
As a result, the total revenue from oil would decrease by 0.2% for each 1% increase in quantity supplied. Therefore, with a 5% increase in production, the total revenue from oil would decrease by 2% (5% * 0.2%).
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A higher level of income may not increase overall happiness if
people do not value absolute income but only their relative
position in the income distribution(no explanation)
a)true
b)false
False.
It is a false statement that a higher level of income may not increase overall happiness. A higher level of income could increase overall happiness in some instances, but it is also subject to other factors.The degree of happiness that results from income is dependent on various factors. For some people, having a higher level of income would lead to a happier and healthier lifestyle. With an increase in income, it is possible to acquire some basic things in life such as food, clothing, and shelter which in turn increases happiness. Money has the power to enhance someone's quality of life by increasing access to opportunities and options. It can also offer more security and financial stability in times of crisis.
However, it is important to note that the relationship between income and happiness is not always linear. Once someone achieves a basic level of financial security, any increase in income may have a diminishing effect on overall happiness.
In addition, an obsession with making more money can sometimes lead to stress, anxiety, and depression which can decrease overall happiness. Therefore, having a balance between income and other aspects of life such as social relationships, mental and physical health, and personal interests is vital to achieving overall happiness.
In conclusion, while having a higher level of income can lead to an increase in overall happiness in some instances, it is subject to a wide range of factors such as individual differences and the presence of other life stressors.
Therefore, it is false statement that a higher level of income may not increase overall hapiness.
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Superstar Berhad reported sales of RM70,000 in May and RM80,000 in June. The forecast sales for July, August and September are RM90,000, RM100,000, and RM110,000, respectively. The beginning cash balance on July 1 is RM3,000 and the firm wishes to maintain a minimum cash balance of RM5,000 every month. The total long-term liabilities of the company are RM25,000. Given the following data, prepare a cash budget for the months of July, August and September.
Additional information is as follows:
The firm makes 20% of sales for cash, 60% is collected in the next month, and the remaining 20% is collected in the second month following the sale.
The firm receives other income of RM 2,000 per month.
The firm’s actual or expected purchases, all made for cash, are RM65,000, RM70,000, and RM85,000 for the months of July through September, respectively.
Rent is RM5,500 per month.
Wages and salaries are 10% of the previous month’s sales.
The net income is RM30,000. Cash dividends is 20% of the net income and will be paid in August.
The payment of principal and interest of the long-term liabilities is 20% of the total long-term liabilities and the payment is due in August.
A cash purchase of equipment costing RM15,500 is scheduled in September.
The earnings before taxes is RM100,000. The taxes amount is 10% of the earnings before taxes and it is due in August.
Based on the cash budget, Superstar Berhad is projected to have a negative cash balance of -RM65,500 in July, -RM133,000 in August, and -RM225,000 in September.
To prepare the cash budget for the months of July, August, and September for Superstar Berhad, we need to calculate the cash inflows and outflows for each month based on the given information.
Cash inflows:
May sales (20% collected in cash in May): RM70,000 * 20% = RM14,000 (received in May)
May sales (60% collected in June): RM70,000 * 60% = RM42,000 (received in June)
June sales (20% collected in June): RM80,000 * 20% = RM16,000 (received in June)
June sales (60% collected in July): RM80,000 * 60% = RM48,000 (received in July)
July sales (20% collected in July): RM90,000 * 20% = RM18,000 (received in July)
July sales (60% collected in August): RM90,000 * 60% = RM54,000 (received in August)
August sales (20% collected in August): RM100,000 * 20% = RM20,000 (received in August)
August sales (60% collected in September): RM100,000 * 60% = RM60,000 (received in September)
September sales (20% collected in September): RM110,000 * 20% = RM22,000 (received in September)
Cash outflows:
Purchases:
July: RM65,000
August: RM70,000
September: RM85,000
Rent: RM5,500 per month
Wages and salaries (10% of previous month's sales):
July: RM80,000 * 10% = RM8,000
August: RM90,000 * 10% = RM9,000
September: RM100,000 * 10% = RM10,000
Cash dividends (20% of net income) paid in August: RM30,000 * 20% = RM6,000
Payment of principal and interest of long-term liabilities (20% of total long-term liabilities) due in August: RM25,000 * 20% = RM5,000
Cash purchase of equipment in September: RM15,500
Other income: RM2,000 per month
Now, let's prepare the cash budget:
Month July August September
Cash inflows
Sales RM18,000 RM20,000 RM22,000
Other income RM2,000 RM2,000 RM2,000
Total RM20,000 RM22,000 RM24,000
Cash outflows
Purchases RM65,000 RM70,000 RM85,000
Rent RM5,500 RM5,500 RM5,500
Wages and salaries RM8,000 RM9,000 RM10,000
Dividends RM6,000
Principal and interest payment RM5,000
Equipment purchase RM15,500
Total RM83,500 RM90,500 RM115,000
Net cash flow -RM63,500 -RM68,500 -RM91,000
Cash balance (beginning) RM3,000 -RM60,500 -RM129,000
Minimum cash balance -RM5,000 -RM5,000 -RM5,000
Cash surplus/deficit -RM68,500 -RM73,500 -RM96,000
Cash balance (end) -RM65,500 -RM133,000 -RM225,000
Based on the cash budget, the ending cash balance for July is -RM65,500, for August is -RM133,000, and for September is -RM225,000.
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The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec. 31 4 8 13 Crane Company sold merchandise to Thomas Co. for $38,000, terms 2/10, n/30,
Here are the journal entries for Crane Company and Thomas Co.,
The Journal Entry for Crane CompanyDec. 3: Accounts receivable 38,000
Dec. 4: Cost of goods sold 18,000
Dec. 8: Freight-out 700
Dec. 13: Accounts receivable 2,710
Dec. 13: Cost of goods sold 990
Thomas Co.
Dec. 3: Merchandise inventory 38,000
Dec. 8: Accounts payable 700
Dec. 13: Merchandise inventory 2,710
Dec. 13: Accounts payable 2,710
Assuming that Thomas Co. had a balance in Merchandise Inventory on December 1 of $6,000, the balance in the Merchandise Inventory account at the end of December would be $11,790.
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The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec. 31 4 8 13 Crane Company sold merchandise to Thomas Co. for $38,000, terms 2/10, n/30, FOB destination. This merchandise cost Crane Company $18,000. The correct company paid freight charges of $700. Thomas Co. returned unwanted merchandise to Crane. The returned merchandise had a sales price of $2.700 and a cost of $990. It was restored to inventory. Crane Company received the balance due from Thomas Co View Policies Current Attempt in Progress The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec. 3 4 8 13. Crane Company sold merchandise to Thomas Co. for $38,000, terms 2/10, n/30, FOB destination. This merchandise cost Crane Company $18,000. The correct company paid freight charges of $700. Thomas Co. returned unwanted merchandise to Crane. The returned merchandise had a sales price of $2,700 and a cost of $990. It was restored to inventory. Crane Company received the balance due from Thomas Co. Prepare the journal entries to record these transactions on the books of Crane Company. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Prepare the journal entries to record these transactions on the books of Thomas Co. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date Dec. 3 V Dec. 4 Dec. 8 V V Account Titles and Explanation Merchandise Inventory Accounts Payable (Purchase on account.) No Entry No Entry Accounts Payable Mrak Debit 38000 0 Credit 38 Assuming that Thomas Co. had a balance in Merchandise Inventory on December 1 of $6,000, determine the balance in the Merchandise Inventory account at the end of December for Thomas Co. (Post entries in the order of journal entries presented in the previous part.) Dec. 1 Dec. 3 Dec. 31 V Merchandise Inventory Dec. 8 Dec. 13 11
A Japanese company opening a factory in Singapore is an example of (1)_________ that would directly benefit the citizens of (2)______ The company's actions would (3)_________ cross-country interdependence. (1) • Decrease • Increase (2)• Foreign direct investment
• Dosmetic dorect saving (3)• Japan • singapure
A Japanese company opening a factory in Singapore is an example of Foreign direct investment that would directly benefit the citizens of Singapore. The company's actions would increase cross-country interdependence.
Foreign Direct Investment is referred to as FDI. It is a tactic employed when a person or organization owns at least 10% of a foreign corporation. For market nations to grow and prosper, FDI is essential.
The expansion, structure, and direction of developing nations foreign sales require international money and experience. For these multinational corporations to increase the number of such positions and member pay, private investments are needed in their infrastructure, electricity, and water supplies. Foreign direct investment (FDI) encourages the development of a competitive environment and undermines domestic trust by supporting the entry of foreign companies into domestic markets.
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Lorenzo operates a brushless car wash. Incoming cars are put on an automatic, continuously moving conveyor belt. A car is washed as the conveyor belt carries it from the start station to the finish station. After the car moves off the conveyor belt, workers dry it and clean and vacuum the inside. Workers are managed by a single supervisor.
Lorenzo's accountant wants to estimate total costs in October when 11,450 cars are expected to be washed. She uses two different methods to estimate total October costs, account analysis, and high-low, with a number of cars washed as the independent variable for both methods.
For the account analysis method, she developed cost function parameter estimates by analyzing actual costs in February, when 11,200 cars were washed. The following are February total costs and her fixed cost estimates:
Cost Item Total Cost Fixed Portion
Soap, cloths, and supplies $2,240 $0
Water $2,240 $0
Car wash labor $28,340 $2,580
Power for conveyor $13,620 $2,420
Supervisor and cashier $4,000 $4,000
For the high-low method, she developed cost function parameter estimates by using the actual costs in July and August, when 8,500 and 11,500 cars were washed, respectively. The following are total costs for these two months:
Cost Item July August
Soap, cloths, and supplies $3,400 $4,600
Water $2,550 $3,450
Car wash labor $22,550 $29,450
Power for conveyor $10,600 $13,600
Supervisor and cashier $4,650 $4,650
Part A:
1. Using account analysis, what is the accountant's estimate of total fixed costs for October?
2. Using account analysis, what is the accountant's estimate of variable costs per unit for October?
Part B:
1. Using the high-low method, what is the accountant's estimate of total fixed costs for October?
2. Using the high-low method, what is the accountant's estimate of total variable costs for October?
Lorenzo's accountant uses two methods, account analysis and high-low, to estimate the total costs for October at his brushless car wash. Account Analysis: The accountant estimates the total fixed costs for October to be $4,000, considering the fixed costs for the supervisor and cashier.
Account Analysis: The accountant estimates the variable costs per unit for October using the account analysis method. By applying the formula [(Total costs - Fixed costs) / Number of units washed], the estimated variable cost per unit is calculated to be $49.37 per car washed.
High-Low Method: Using the high-low method, the accountant estimates the total fixed costs for October.
The variable cost per unit is determined to be $0.33 by subtracting the high and low values of variable costs per unit and units washed.
By substituting the values into the cost formula, it is found that the total fixed cost for October using the high-low method is $25,579.5.
High-Low Method: Similarly, using the high-low method, the accountant estimates the total variable costs for October.
By multiplying the variable cost per unit ($0.33) by the number of units washed (11,450), the total variable cost is determined to be $3,778.50.
Overall, these methods allow the accountant to estimate the fixed and variable costs for October, providing insights into the cost structure of Lorenzo's brushless car wash business.
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Find a current business article (from within the past 6 months, provide a reference link) and discuss what project management methodology was used and why (or why not) that made sense for the project. Incorporate material from the textbook in your responses. Be sure to explain the relevant concepts you touch on in a clear and concise manner.
The latest business article that can be considered to understand project management is Agile.
Agile development approaches, such as Scrum, Kanban, and Lean, place a strong emphasis on adaptability, teamwork, and iterative development. Agile projects are broken up into brief sprints or iterations to allow for ongoing input and adaptability to shifting needs. Agile approaches have gained popularity in the IT sector and are extensively used by many organisations due to their emphasis on flexibility, collaboration, and iterative development. The dynamic and quick-paced nature of software development and product creation is in line with these techniques.
Steve Jobs, who first served as the product owner, completed all necessary tasks, made projections, and sought solutions that would satisfy customers. All of those responsibilities are now handled by several people, but the company's end-user-focused mindset hasn't altered since then. It is possible to split up all large teams into smaller ones to facilitate better project management. According to Scrum, the ideal team size ranges from 2 to 12. For instance, the code for iPad's adaptation of the Safari web browser was only written by two developers. Therefore, everyone is in agreement with everything, even complex cross-functional technical duties and issues relating to property rights.
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After discussing the labor market and wages. Can you briefely explain the concept of compensating differentials? Can you provide two examples, one resulting in higher wages and one resulting in lower wages and explain your reasoning for each?
Compensating differentials are wage differences that arise to compensate for non-monetary differences between jobs. In other words, they are pay differences that individuals are willing to accept to work under specific circumstances.
For example, if two jobs have the same salary but one has a hazardous working environment, workers are expected to receive compensating differentials. Additionally, if a person has to work odd hours, they may be compensated with a higher wage. Here are two examples of compensating differentials: Compensating differential resulting in higher wages
A sanitation worker who picks up garbage will be paid more than a retail worker in a clothing store. The job of a sanitation worker is physically demanding, takes place outdoors, and exposes the worker to the possibility of coming into contact with hazardous waste. The retail worker, on the other hand, works indoors in a safe and clean environment, making it less risky. Thus, the sanitation worker is expected to receive a higher wage to compensate for the physical risks involved. Compensating differential resulting in lower wages
A clerk who works in an office may receive a lower wage than a construction worker who works on the road. The job of a clerk is less risky than the job of a construction worker. A construction worker is exposed to harsh weather conditions, noise, traffic hazards, and other risks associated with working on the road. Thus, the construction worker is expected to receive a higher wage to compensate for the physical risks involved.
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Remaining Time: 1 hour, 57 minutes, 24 seconds. Question Completion Status: Moving to another question will save this response Question 1 Q114 2po Friends Partnership has three partners. The balance o
The capital balance is $79,000 for Mariam and $81,000 for Fatima.
What is the capital balance for Mariam and Fatima?Initially, the total capital balance of the partnership is:
= $48,000 + $50,000 + $52,000
= $150,000.
When Ala withdraws, Mariam and Fatima agree to pay $58,000 to buy out Ala's share.
Since the partners share income and loss equally, the remaining capital is split equally between Mariam and Fatima.
Amount contributed by Mariam and Fatima:
= $58,000 / 2
= $29,000 each.
Mariam's capital balance after Ala's withdrawal:
= $50,000 + $29,000
= $79,000.
Fatima's capital balance after Ala's withdrawal:
= $52,000 + $29,000
= $81,000.
Full question:
Partnership has three partners. The balance of each partner capital is Alia $48,000; Mariam $50,000 and Fatima $52,000. Ala withdraws from the Partnership The remaining partners, Mariam and Fatima, agreed to pay cash of $58,000 for Alia from partnership. The partners share income and loss equally Required How much is the capital balance for the remaining partners Mariam and Fatima after the withdrawal of Ala
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a) Jaleel knows that the primary purpose of a futures contract is the management of risk exposures. Use Qantas Airlines as an example to further explain how a futures contract achieves this risk management function.
b) Jaleel is holding some Tesla shares (NASDAQ: TSLA) and The TSLA stocks are currently trading at $985 on the Nasdaq. Given TSLA stocks are very volatile, Jaleel wishes to protect the value of his investments. He seeks your advice on using option contracts and presents a list of options for you to choose from. Assume the number of underlying shares per contract is 100 shares.
a) Jaleel understands that futures contracts are created to manage risk exposures. The purpose of a futures contract is to provide a means of reducing risk by allowing parties to lock in a price for an underlying asset
. A futures contract involves a contract between two parties to buy or sell an asset at a predetermined price on a future date. The contract can be settled in cash or by delivery of the underlying asset.Qantas Airlines is a good example to use to explain how futures contracts work.
Qantas Airlines is vulnerable to fluctuations in fuel prices.
As a result, Qantas Airlines may use futures contracts to hedge against rising fuel costs. Qantas Airlines may enter into a futures contract with a fuel company to lock in the price of fuel for a future delivery date. The futures contract allows Qantas Airlines to protect itself from a sudden increase in fuel costs by agreeing on a price for fuel in advance.
Even if fuel prices rise between the time the futures contract is signed and the date of delivery, Qantas Airlines will still pay the agreed-upon price for fuel. As a result, the airline is able to reduce its exposure to the risk of rising fuel prices.
b) Jaleel wishes to use option contracts to protect his investments in Tesla shares, which are currently trading at $985 on the Nasdaq. Option contracts are financial derivatives that give the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price on or before a specified date
. They offer a means of hedging against potential losses while also allowing for the possibility of gains. Jaleel should consider purchasing a put option to hedge against a potential decline in the value of his Tesla shares.
A put option gives the holder the right to sell the underlying asset at a predetermined price on or before a specified date. If the value of the Tesla shares falls below the predetermined price, Jaleel can exercise the option to sell the shares at the higher price, thereby protecting the value of his investment
. The following options can be used:
Option 1: A put option with a strike price of $900
Option 2: A put option with a strike price of $950
Option 3: A put option with a strike price of $1000
Option 4: A put option with a strike price of $1050
If Jaleel expects a significant drop in the price of Tesla shares, he should choose option 4.
If he expects a small drop, he should choose option 2. If he expects a moderate drop, he should choose option 3. Option 1 is not recommended since it has a lower strike price than the current market price of $985.
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Which of the following is true of the contribution margin income statement? A. Selling costs are never included in the calculation of contribution margin. B. The contribution margin is the amount that is available to cover fixed costs. C. Both fixed and variable manufacturing costs are deducted to calculate contribution margin. D. All of the other answers are incorrect. EXPLAIN
The correct answer is B. The contribution margin is the amount that is available to cover fixed costs.
The contribution margin income statement is a managerial accounting tool that separates costs into variable costs and fixed costs. It focuses on the relationship between sales revenue, variable costs, and contribution margin. Here's an explanation of the options:
A. Selling costs are never included in the calculation of contribution margin.
This statement is incorrect. Selling costs can be considered as variable costs and are included in the calculation of the contribution margin. Examples of selling costs include sales commissions, advertising expenses, and shipping costs.
B. The contribution margin is the amount that is available to cover fixed costs.
This statement is true. The contribution margin represents the revenue remaining after deducting variable costs. It is the amount that contributes towards covering fixed costs and generating a profit.
C. Both fixed and variable manufacturing costs are deducted to calculate contribution margin.
This statement is incorrect. Only variable manufacturing costs are deducted to calculate the contribution margin. Fixed manufacturing costs are not considered in the calculation of the contribution margin but are accounted for separately in the fixed cost category.
D. All of the other answers are incorrect.
This statement is incorrect. As explained above, option B is correct, so not all of the other answers are incorrect.
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The cost of capital tends to be higher in emerging markets. Explain the two factors that drive the higher cost of equity in the emerging markets. Similarly, explain the two factors that drive the high
The cost of capital, particularly the cost of equity, tends to be higher in emerging markets compared to developed markets. This is primarily due to the political and regulatory risk, market and economic risk, sovereign risk and currency risk .
Factors driving the higher cost of equity in emerging markets:
Political and Regulatory Risks: Emerging markets often have higher political and regulatory risks compared to developed markets. These risks include changes in government policies, political instability, corruption, and inadequate legal systems.Market and Economic Risks: Emerging markets are generally characterized by greater volatility and less mature financial markets. Factors such as economic instability, currency fluctuations, and limited market liquidity contribute to higher market and economic risks.Factors driving the higher cost of debt in emerging markets:
Sovereign Risk: Emerging markets often face higher sovereign risk, which refers to the risk of a government defaulting on its debt obligations. This risk is influenced by factors such as the country's credit rating, economic stability, and debt-to-GDP ratio.Currency Risk: Emerging markets frequently experience currency volatility, as their currencies may be more susceptible to fluctuations compared to major global currencies.It's worth noting that the factors influencing the cost of capital in emerging markets can vary across countries and regions. Additionally, improvements in economic and political stability, financial market development, and governance practices can potentially reduce the cost of capital in emerging markets over time.
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as a bank loan officer, you are considering a loan application by peak performance sporting goods. the company has provided you with the following information from its balance sheet: peak performance's current ratio is: group of answer choices 3.0. 2.5. 1.5. 1.0.
As a bank loan officer, you are considering a loan application by peak performance sporting goods. the company has provided you with the following information from its balance sheet: peak performance's current ratio is A. 3.0
Current Ratio is one of the essential financial ratios used by banks and investors to assess the liquidity of the business. It is an indication of a company's ability to pay its current obligations or liabilities using its current assets. Current Ratio is calculated by dividing the total current assets by the total current liabilities. The Current Ratio of 3.0 means that the company has three times more current assets than its current liabilities. As a bank loan officer, a higher Current Ratio of 3.0 is an indication that the business is capable of paying back its short-term liabilities.
The company has enough current assets to cover its current liabilities, including accounts payable, short-term loans, and taxes payable.The bank loan officer should be able to use this ratio in making the decision of approving the loan. A ratio of 3.0 shows a high degree of liquidity, which means that the company can easily turn its assets into cash to pay its bills. If a company has a low Current Ratio, it implies that it might face difficulty paying off its short-term obligations, and this could make it difficult for it to access additional credit. So therefore the company has provided you with the following information from its balance sheet: peak performance's current ratio is A. 3.0.
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Given the following data: Ę₁ = =¥105 = $1.00 Et+1 =¥106 = $1.00 = 8% U.S. Assuming that Japan is the domestic currency, if the interest parity condition is expected to hold, interest rates in Japan (RJapan) should equal % (Enter your answer as a percentage rounded to two decimal places).
if the interest parity condition is expected to hold, interest rates in Japan (RJapan) should equal 2.88%.
The interest parity condition is based on the concept of the covered interest arbitrage and states that the difference in interest rates between two countries will be offset by an equal but opposite change in the exchange rate of the currencies over the period of the investment.
The equation used to calculate the expected change in the exchange rate is:
Et+1/E1=(1 + iD) / (1 + iF)
Where: Et+1 = the expected exchange rate at the time
t + 1E1 = the current exchange rate at the time
tRJapan = the interest rate in Japan
RUS = the interest rate in the USiD = RJapan
iF = RUS
Given the data:
Et+1 = ¥106/$1.00
= $1.00/¥106
= 0.00943396226E1
= ¥105/$1.00
= $1.00/¥105
= 0.00952380952RUS
= 8%
Convert the US interest rate to the domestic currency:
1.08 * $1.00 = $1.08
Calculate the expected exchange rate:
0.00943396226 / 0.00952380952
= (1 + RJapan) / 1.08RJapan
= 2.88% (rounded to two decimal places)
Therefore, if the interest parity condition is expected to hold, interest rates in Japan (RJapan) should equal 2.88%.
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Journal entries for a nonprofit
Fruits & Veggies, a nonprofit, conducts two types of programs: education and research. It does not use fund accounting. During the fiscal year, the following transactions and events took place. Prepare journal entries for these transactions, identifying increases and decreases by net asset classification as appropriate.
1. Pledges amounting to amount pledged. $180,000 were received, to be used for any purpose designated by the trustees. Fruits & Veggies normally collects 90 percent of the amount pledged.
Fruits & Veggies recorded a journal entry with a debit to Cash for $162,000 and a credit to Temporarily Restricted Net Assets for $162,000.
To properly prepare the journal entries for the transactions, it's important to understand the net asset classifications commonly used by nonprofits. These classifications include unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets.
Based on the information provided, the transaction can be recorded as follows,
When pledges are received, it is initially recorded as an increase in temporarily restricted net assets since the funds are subject to donor-imposed restrictions. Once the restrictions are met, the funds are reclassified to unrestricted net assets.
Account Debit Credit
Cash $162,000
Temporarily Restricted Net Assets $162,000
The nonprofit received pledges amounting to $180,000, but it normally collects 90 percent of the amount pledged. Therefore, the amount collected is 90% of $180,000, which is $162,000. The cash received is debited, and the amount is recorded as an increase in temporarily restricted net assets.
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