As a result of recent downsizing at his firm, Dominic lost his job as an IT manager for a large telecommunications company. A true, self-confirmed computer nerd, Dominic knew that several of his past contacts often outsourced their computer problems. He decided it was a good time to test the waters and see if he could secure enough computer clients to be in business for himself. His success demonstrated that

Answers

Answer 1

Answer:

The responses to the given question can be defined as follows:

Explanation:

Dominic quit his position as an IT manager for the largest telecommunication company despite a brief downsizing in her corporation. A genuine, self-confirmed nerd of a machine, Dominic realized that several of his past connections often subcontracted problems. He decided to try out all the water to find out whether he could secure and/or computer clients to be in the company. His performance has shown that effective major firms also generate lucrative support for young businesses. He could consider outsourcing jobs from large companies. It shows that big companies are supplying the small company with jobs, that's why the correct choice is "successful big businesses often create profitable opportunities for small businesses".


Related Questions

Sheffield Corp. had accounts receivable of $250,000 on January 1, 2019. The only transactions that affected accounts receivable during 2019 were net credit sales of $5,225,000, cash collections of $5,155,000, and accounts written off of $20,000.

Answers

Answer:

300000is the answer make me branlist

A company is planning to purchase a machine that will cost $31,200 with a six-year life and no salvage value. The company uses straight-line depreciation. The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the accounting rate of return for this machine

Answers

Answer:

44.87%

Explanation:

Note: Missing word have been attached as picture below

Average Investment = (Initial Investment + Scrap Value) / 2

Average Investment = [$31,200 + $0] / 2

Average Investment = $31,200/2

Average Investment = $15,600

Accounting Rate of Return = Net Income/Average Investment*100

Accounting Rate of Return = $7,000/$15,600 * 100

Accounting Rate of Return = 0.44871795 * 100

Accounting Rate of Return = 44.87%

The Bountiful Bakery is considering hiring another pastry chef. The bakery knows the average product of its chefs currently is 15 dozen croissants per day. It also believes that the next chef hired will produce an extra 12 dozen croissants per day. A dozen croissants sell for $30. The bakery should hire another worker:

Answers

Answer: only if the new chef's daily wage is $360 or less.

Explanation:

It should be noted that the decision with regards to hiring a new chef will be made by the company when the marginal value product is more than the marginal cost.

The marginal value product here will be: = (12 × $30) = $360. Therefore, The bakery should hire another worker only if the new chef's daily wage is $360 or less.

Assume that Thomas can afford to buy as many candy bars and ice cream cones as he wants. He would continue to consume both candy bars and ice cream until the

Answers

Answer:

Marginal utility of each becomes negative

Explanation:

Utility is defined as the level of satisfaction that a person gets from consuming a product.

The person keeps on consuming the item until the level of marginal utility for the product becomes less than zero.

That is there is no satisfaction anymore in consuming the product.

In the given instance Thomas will continue to consume both candy bars and ice cream until the level of satisfaction (marginal utility) is now less than zero or negative

George, an unskilled worker in the 1930s, toiled 10 hours a day on an assembly line. His hours were long, his wages were low, and his working conditions were unsafe and unpleasant. George would probably have been more sympathetic to the views of John L. Lewis than to those of Samuel Gompers.

a. True
b. False

Answers

Answer: True

Explanation:

The main reason that can be attributed to AFL not recognizing CIO when it was still growing was due to the fact that there was a disagreement over the inclusion of craft unions and industrial unions in the AFL which Samuel Gompers was the leader and membership were only to skilled workers.

Later, John Lewis, whom was the president of United Mine Workers, made a proposal stating that unskilled workers should be included in the industrial unions and this was rejected which led to Lewis breaking with AFL and then went to form CIO.

Kenseth Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets.
Projected Plan
Benefit Assets
Obligation Value
2013 $2,000,000 $1,900,000
2014 2,400,000 2,500,000
2015 2,950,000 2,600,000
2016 3,600,000 3,000,000
The average remaining service life per employee in 2013 and 2014 is 10 years and in 2015 and 2016 is 12 years. The net gain or loss that occurred during each year is as follows: 2013, $280,000 loss; 2014, $90,000 loss; 2015, $11,000 loss; and 2016, $25,000 gain.
Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule.
Year
Minimum Amortization of Loss
2013 $
2014 $
2015 $
2016 $

Answers

Answer:

Year Minimum Amortization of Loss

2013 $0

2014 $3,000

2015 $ $6,000

2016 $1,000

Explanation:

Computation of the amount of net gain or loss amortized and charged to pension expense in each of the four years.

Corridor and Minimum Loss Amortization

Year 2013

Projected Benefit Obligation (a) $2,000,000

Plan Assets $1,900,000

10%Corridor 200,000

(10%×$2,000,000)

AccumulatedOCI (G/L) (a) $0

Minimum Amortization of loss $0

(a) As of the beginning of the year

Year 2014

Projected Benefit Obligation (a) $2,400,000

PlanAssets $2,500,000

10%Corridor 250,000

(10%×$2,500,000)

AccumulatedOCI (G/L) (a) $280,000

Minimum Amortization of loss $3,000 (b)

(b) ($280,000-$250,000)÷10 years

=$30,000÷10 years

=$3,000

Year 2015

Projected Benefit Obligation (a) $2,950,000

PlanAssets $2,600,000

10%Corridor 295,000

(10%×$2,950,000)

AccumulatedOCI (G/L) (a) $367,000(c)

Minimum Amortization of loss $6,000 (d)

(c) ($280,000-$3,000+$90,000)

=$367,000

(d) ($367,000-$295,000)÷12 years

=$72,000÷12 years

=$6,000

Year 2016

Projected Benefit Obligation (a) $3,600,000

PlanAssets $3,000,000

10%Corridor 360,000

(10%×$3,600,000)

AccumulatedOCI (G/L) (a) $372,000(e)

Minimum Amortization of loss $1,000 (f)

(e) $367,000-$6,000+$11,000

=$372,000

(f) ($372,000-$360,000)÷12 years

=$12,000 ÷12 years

=$1,000

Therefore the amount of net gain or loss amortized and charged to pension expense in each of the four years are:

Year Minimum Amortization of Loss

2013 $0

2014 $3,000

2015 $ $6,000

2016 $1,000

Holden is a people person. He is very good at working with customers and keeping a positive attitude. He has taken a couple classes on supervising money matters and typically works on a computer tracking customer information. Which career does Holden most likely have?

Logistics Planning and Management Services

Sales and Services

Transportation Operations

Facility and Mobile Equipment Maintenance

Answers

Answer:b

Explanation:

Trust

Answer:

B, Sales and Services

Explanation:

Sales and services workers usually have to talk to customers and help them track their packages/orders/customer info. That is what it says Holden is doing, so it should be B. Have a good day (;

Firm Aay operates a pool hall in Boom Town. Business has been very profitable. However, there are dark clouds on the horizon. Firm Bee is considering entering the pool hall market in Boom Town. The profits of Aay are 15 if it is a monopoly; if Bee enters and Aay accommodates and shares the market the duopoly profits are 5 for each firm; is Bee enters and Aay launches a price war, both firms earn -1.
a) Draw the game tree for this scenario and determine the subgame perfect equilibrium (SPE).
b) What if launching a price war involves not only charging a low price, but printing flyers to inform the public of the great deals available? If there is a price war, both firms print flyers, and the net result of the price war is -1 for each firm (that is, the -1 takes into account the cost of printing the flyers.) Assume that Aay can have flyers printed up prior to Bee's entry decision and that the printing cost is $8. Draw the game tree for this scenario and determine the subgame perfect equilibrium.
c) What does your answer to (b) imply about the relationship between sunk costs, firstmover advantages, and entry deterrence? plz type down u answer

Answers

Solution :

a). The game tree is attached below. In the game tree, the (SPE) or subgame perfect equilibrium is for Bee firm to enter and Aay firm to accommodate.

b). If launching the price war consists of not only charging low price, but also printing flyers in order to inform the public.  

The game tree is attached below.

In the game tree, it can be explained that :

Aay has a priority printing, cost of printing is 8. If he prints and Bee does not enter equilibrium will be (15-8) = 7, 0. Profit if Bee does not enter.

It is given that if Aay enters and Bee enters, there will be price war = -1, -1

or they will accommodate = (5, 8, 5). Here the profit while accommodating is 5 and printing cost is 3. Therefore, (-3, 5)

c). Sunk cost such as that of printing allows Aay to make a credible threat to engage in a prior war and thus deny entry of Bee.

Now when he had first move advantage and make investment in flyers he could make a credible threat and deter entry of Bee. If he did not have the advantage, his treat would not have much of an effect.

which are possible employers of the financial career cluster? check ALL that apply
private company
government
nonprofit organization
bank
stock market​

Answers

Private companies, the government, non profit organization and banks

Answer:

private company

government

nonprofit organization

bank

Explanation:

Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock.The following amounts were distributed as dividends: Year 1: $10,000 Year 2: 45,000 Year 3: 90,000 Determine the dividends in arrears for preferred stock for the second year. a.$10,000 b.$25,000 c.$30,000 d.$0

Answers

Answer:

Option b is correct

Arrears preference dividends = $25,000

Explanation:

Preference shareholders are entitled to a fixed amount of dividends.

Cumulative preference shares: Cumulative simply implies that should the company misses the payment of dividend in a particular year such unpaid dividend would be carried carried forward and paid in arrears in the following year.

                                                                                        $

Preferred dividend in year = 2%× 100× 20,000=    40,000

Preferred dividend in year 2 = 2%× 100× 20,000=   40,000

Total dividend accrued to preference shares         80,000

Less  total dividend paid in year 1 and 2                  55,000

Arrears preference dividends                                 25,000

Arrears preference dividends = $25,000

On December 31, 2018, the end of its first year of operations, Wildhorse Associates owned the following securities that are held as long- term investments.

Common Stock Shares Cost
C Co. 1,050 $50,400
D Co. 5,090 38,175
E Co. 1,199 25,179

On this date, the total fair value of the securities was equal to its cost. The securities are not held for influence or control over the investees. In 2019, the following transactions occurred.

July 1 Received $2 per share semiannual cash dividend on D Co. common stock.
Aug. 1 Received $0.50 per share cash dividend on C Co. common stock.
Sept. 1 Sold 1,020 shares of D Co. common stock for cash at $9 per share.
Oct. 1 Sold 274 shares of C Co. common stock for cash at $54 per share.
Nov. 1 Received $1 per share cash dividend on E Co. common stock.
Dec. 15 Received $0.50 per share cash dividend on C Co. common stock.
31 Received $2.30 per share semiannual cash dividend on D Co. common stock.

At December 31, the fair values per share of the common stocks were C Co. $47, D Co. $7.30, and E Co. $25. These investments should be classified as long-term.

Requried:
Journalize the 2019 transactions

Answers

Answer:

July 1

Dr Cash $10,180

Cr Dividend Revenue $10,180

Aug. 1

Dr Cash $525

Cr Dividend Revenue $525

Sept. 1

Dr Cash $9,180

Cr Gain on Sale of Stock Investments $1,530

Cr Stock Investments $7,650

Oct-01

Dr Cash $14,797

Cr Stock Investments $13,152

Cr Gain on Sale of Stock Investments $1,645

Nov 1

Dr Cash $1,199

Cr Dividend Revenue $1,199

Explanation:

Preparation of the journal entries

July 1

Dr Cash (5,090 X $2) $10,180

Cr Dividend Revenue $10,180

Aug. 1

Dr Cash (1,050 X $0.50) $525

Cr Dividend Revenue $525

Sept. 1

Dr Cash [(1,020 X $9) ] $9,180

Cr Gain on Sale of Stock Investments $1,530

($9,180-$7,650)

Cr Stock Investments (274 X $7.5) $7,650

(38,175/5,090=$7.5)

Oct-01

Dr Cash [(274 X $54)] $14,797

Cr Stock Investments (274 X $48) $13,152

($50,400/1,050=$48)

Cr Gain on Sale of Stock Investments $1,645

($14,797-$13,152)

Nov 1

Dr Cash $1,199

Cr Dividend Revenue $1,199

(1,199*$1)

The following transactions occurred at several different businesses and are not related. Post the following transactions into the appropriate T-accounts

a. Serena Hamilton, an owner, made an additional investment of $42,000 in cash.
b. A firm purchased equipment for $20,000 in cash.
c. A firm sold some surplus office furniture for $3,400 in cash.
d. A firm purchased a computer for $3,700, to be paid in 60 days.
e. A firm purchased office equipment for $22,400 on credit.
f. The amount is due in 60 days. James Taylor, owner of Taylor Travel Agency, withdrew $12,000 of his original cash investment.
g. A firm bought a delivery truck for $38,500 on credit; payment is due in 90 days.
h. A firm issued a check for $7,200 to a supplier in partial payment of an open account balance

Answers

Answer:

T-accounts:

a. Cash Account

Account Titles         Debit    Credit

Common Stock    $42,000

Common Stock

Account Titles         Debit    Credit

Cash                                 $42,000

b. Equipment

Account Titles         Debit    Credit

Cash                    $20,000

Cash

Account Titles         Debit    Credit

Equipment                     $20,000

c. Cash

Account Titles         Debit    Credit

Office Furniture                  $3,400

Office Furniture

Account Titles         Debit    Credit

Cash                     $3,400

d. Computer

Account Titles         Debit    Credit

Accounts payable $3,700

Accounts payable

Account Titles         Debit    Credit

Computer                            $3,400

e. Office Equipment

Account Titles         Debit    Credit

Accounts payable $22,400

Accounts payable

Account Titles         Debit    Credit

Office Equipment            $22,400

f. James Taylor, Capital

Account Titles         Debit    Credit

Cash                                 $12,000

Cash

Account Titles         Debit    Credit

James Taylor,

 Capital                $12,000

g. Delivery Truck

Account Titles         Debit    Credit

Accounts payable $38,500

Accounts payable

Account Titles         Debit    Credit

Delivery Truck     $38,500

h. Accounts payable

Account Titles         Debit    Credit

Cash                       $7,200

Cash

Account Titles         Debit    Credit

Accounts payable               $7,200

Explanation:

a) Data and Analysis:

a. Cash $42,000 Common Stock $42,000

b. Equipment $20,000 Cash $20,000

c. Cash $3,400 Office Furniture $3,400

d. Computer $3,700 Accounts payable $3,400

e. Office Equipment $22,400 Accounts payable $22,400

f. James Taylor, Capital $12,000 Cash $12,000

g. Delivery Truck $38,500 Accounts payable $38,500

h. Accounts payable $7,200 Cash $7,200

A single lease expense is recognized on the income statement for an operating lease. a finance lease. both a finance lease and an operating lease. neither a finance lease or an operating lease.

Answers

Answer:

an operating lease.

Explanation:

A lease refers to a contract that rents a land or other properties to another person for a specified period of time and amount of money.

A lease right can be defined as an approval granted by a lessor (landlord) to a lessee for the use of a property such as land over a specific period of time.

A lease for a period of 24 months must be in writing between the lessor (landlord) and the lessee (tenant) to be enforceable by a competent court of law

Generally, a single lease expense is recognized on the income statement for an operating lease.

A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.

Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.

Hence, activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as operating activities.

A product has annual demand of 10,000 units. The plant manager wants production to follow a four-hour cycle. Based on the following data, what holding cost per unit per year will enable the desired production cycle? d = 40 per day (250 days per year), p = 200 units per day, S = $7.20 per order, and Q = 20 (demand for four hours, half a day). $18.00 $40.00 $400.00 $45.00 $450.00

Answers

Answer:

Based on the data, the holding cost per unit per year that will enable the desired production cycle is:

= $18.00.

Explanation:

a) Data and Calculations:

Annual demand of the product = 10,000 units

Demand per day, d = 40 (10,000/250) units

Given days in a year = 250 days

Production, p per day = 200 units

Ordering cost, S = $7.20 per order

Q (demand for four hours or half a day) = 20 units (40/2) following a four-hour cycle

Number of orders = 10,000/20 = 500

Total ordering costs = $3,600 (500 * $7.20)

Since EOQ = Q = 20 units

20 = Square root of (2*D*S)/H

Where:

D = Annual demand

S= Ordering cost

H = Holding cost

20 = Square root of (2 * 10,000 * $3,600)/H *10,000

20 = Square root of 72,000,000/(H * 10,000)

Substituting H with $18

= Square root of 72,000,000/180,000

= Square root of 400

= 20

A pollution tax would be preferable to a system of transferable permits when... a. the marginal costs of damages are steep and the marginal costs of pollution reduction are relatively stable. b. the marginal costs of damages are steep and the marginal costs of pollution reduction are steep. c. the marginal costs of damages are relatively stable and the marginal costs of pollution reduction are relatively stable. d. the marginal costs of damages are relatively stable and the marginal costs of pollution reduction are steep. e. the marginal costs of damages are elastic and the marginal costs of pollution reduction are also elastic.

Answers

Answer:

a. the marginal costs of damages are steep and the marginal costs of pollution reduction are relatively stable.

Explanation:

Pollution can be defined as the physical degradation or contamination of the environment through an emission of harmful, poisonous and toxic chemical substances.

Offset trading refers to a type of trading system that is typically designed for the realization of more efficient pollution control.

This ultimately implies that, an offset trading is a strategic program that allows emerging business firms to pay existing business firms in order to significantly reduce their emissions or pollutants below a specific standard.

Free market in tradable pollution permits simply means giving manufacturing companies and individuals the legal right to pollution of the environment. For example, XYZ company is purchasing the permit of 500 units of carbon dioxide (CO2) pollution annually, this simply means it is permitted to pollute the environment by 500 units of CO2 annually.

Additionally, a free market in tradable pollution permits has some sort of benefits as companies can resell their unused permits or devise a cheaper means of reducing pollution. It also compensate companies that significantly reduces its pollution of the environment.

A pollution tax can be defined as a type of tax imposed on business firms that causes pollution and damages to the environment. It is also referred to as Pigovian tax which is a tax on goods with negative externality.

Hence, tradable permits when compared with pollution tax are likely to result in less inefficiency, when the marginal costs of damages are steep and the marginal costs of pollution reduction are relatively stable.

Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2017, the following data are available.
1. Sales: 20,000 units quarter 1; 22,000 units quarter 2.
2. Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3%.
3. Fixed costs per quarter: sales salaries $10,700, office salaries $6,480, depreciation $4,520, insurance $1,990, utilities $900, and repairs expense $650.
4. Unit selling price: $25.
Prepare a selling and administrative expense budget by quarters for the first 6 months of 2017.

Answers

Answer:

Budgeted Selling and Administrative Expense are:

Quarter 1 = $75,240

Quarter 2 = $80,240

Six Months = $155,480

Explanation:

Note: See the attached excel file for the selling and administrative expense budget by quarters for the first 6 months of 2017.

In the attached excel file, the following calculations is done:

Quarter 1 sales revenue = Quarter 1 units * Unit selling price = 20,000 * $25 = $500,000

Quarter 2 sales revenue = Quarter 2 units * Unit selling price = 22,000 * $25 = $550,000

From the attached excel file, Budgeted Selling and Administrative Expense are:

Quarter 1 = $75,240

Quarter 2 = $80,240

Six Months = $155,480

Galla Inc. needs to determine a price for a new product. Galla desires a 25% markup on the total cost of the product. Galla expects to sell 8,020 units. Additional information is as follows: Variable product cost per unit $ 31 Variable administrative cost per unit 41 Total fixed overhead 48,100 Total fixed administrative 16,060 Using the total cost method what price should Galla charge

Answers

Answer:

Selling price= $100

Explanation:

Giving the following information:

Variable product cost per unit $31

Variable administrative cost per unit 41

Total fixed overhead 48,100

Total fixed administrative 16,060

Markup= 25%

Number of units= 8,020

First, we need to calculate the unitary fixed cost:

Total fixed cost= 48,100 + 16,060= $64,160

Unitary total fixed cost= 64,160/8,020= $8

Now, the total unitary cost:

Total unitary cost= 8 + 31 + 41= $80

Finally, the selling price:

Selling price= 80*1.25

Selling price= $100

Erik Cartman just took a new position with Colorado Research, Inc. Erik’s first customer, the president of a local bank, wanted a bank image study to be conducted measuring not only the client’s banks’ image, but that of his competitors as well. In designing the research project, Erik talked to several of his friends one night about how they viewed their banks. Erik charged the client for this and billed it as "Exploratory Research NFocus Group." The next day Erik tried to remember most of what his friends had told him. Some of the issues were "closeness to home" of branch locations, "cool online banking," and "friendly tellers." Erik took these issues, made up some of his own and put them into a semantic differential scale format. After the research study, Erik wrote a report and referred to the semantic differential scale he devised as a "Standard Marketing Research Scale to Measure the Construct of Bank Image." What Erik did was:___________
A) correct; he used exploratory research to generate most of the items for his
measurement of bank image
B) correct; although he used some of his own opinions, they were based upon experience and he did make use of a focus group
C) incorrect; the measurement of bank image was incorrect as bank image should be measured only by using Likert scales
D) incorrect; we do not know if the scale Mr. Cartman devised was valid or reliable, but he was unethical in presenting the measurement as"standard marketing research"
E) correct; Erik saved considerable time and money by creating his own measurement of the construct

Answers

Answer: D. Incorrect; we do not know if the scale Mr. Cartman devised was valid or reliable but he was unethical

in presenting the measurement as "standard marketing research.

Explanation:

Based on the information given in the question, the correct option is D "we do not know if the scale Mr. Cartman devised was valid or reliable but he was unethical in presenting the measurement as "standard marketing research".

He was unethical as he didn't tell his friends that he was collecting the information from them for a research purpose. Also, making up some of the issues regarding his research is not appropriate.

Therefore, the correct option is D.

"Bennett Co. has a potential new project that is expected to generate annual revenues of $247,700, with variable costs of $137,600, and fixed costs of $56,500. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $16,500. The annual depreciation is $22,000 and the tax rate is 40 percent. What is the annual operating cash flow?"

Answers

Answer:

$40,960

Explanation:

The computation of the operating cash flow is shown below;

As we know that

Annual Operating Cash Flow is

= EBIT × (1 - Tax Rate) + Depreciation Expenses

Here,

Earnings Before Interest & Tax [EBIT] = Revenues - Variable Cost - Fixed Costs - Depreciation Expenses

= $247,700 - $137,600 - $56,500 - $22,000

= $31,600

Now

Annual Operating Cash Flow = EBIT × (1 - Tax Rate) + Depreciation Expenses

= $31,600 × (1 - 0.40) + $22,000

= [$31,600 × 0.60] + $22,000

= $18,960 + 22,000

= $40,960

ABC Company rents its extra office space to XYZ Company for $600 per month. On November 1, 2020, ABC Company received $3,600 rent in advance from XYZ Company for the months of November 2020, December 2020, January 2021, February 2021, March 2021, and April 2021. The adjusting entry on December 31, 2020 (the end of the fiscal year) would include:

Answers

Answer:

Debit  : Rent Paid in Advance $1,200

Credit : Rent Income $1,200

Explanation:

The adjusting entry on December 31, 2020 would include:

Debit  : Rent Paid in Advance $1,200

Credit : Rent Income $1,200

The inflation rate in Great Britain is expected to be 4% per year, and the inflation rate in Switzerland France is expected to be 6% per year. If the current spot rate is £1 = SF 12.50, what is the expected spot rate in two years? A) SF12.99 B) SF 10.25 C) SF 11.44 D) SF 8.50 E) None of the above

Answers

Answer:

The spot rate in two years time = SF 12.99

Explanation:

The purchasing power parity states that the relationship between the current and future spot rate between two currencies can be linked to the differences in the expected inflation rate between the currency.

This relationship can be expressed as follows:

S1=  So× (1 + hc)/(1 + hb)

So= Current spot rate, Hc- inflation rate in Switzerland, Inflation rate in Britain

Spot rate in a year's time

S1= 12.50, Hc=6%, Hc=4%

S1= 12.50× (1.06/1.04)

S1=12.74

Spot rate in two year's time

S1= 12.74× (1.06/1.04)

S1= 12.99

The spot rate in two years time = SF 12.99

REITs pay dividends in order to retain their favorable tax status. As the next chapter on stock explains, corporate dividends are made from earnings. REIT dividends often are not made from earnings but the distributions are made from funds from operations (FFO). REIT accounting earnings are adjusted for noncash expenses such as deprecia-tion to determine funds from operations. In addition, a REIT may sell a property and distribute the proceeds. For these reasons, financial analysts often use FFO instead of earnings to analyze a REIT. Distributions are often more highly correlated with per-share funds from operation than they are with earnings per share (EPS). Consider the following FFO and EPS for Washington Real Estate Trust:
Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Distributions $1.16 1.23 1.31 1.39 1.47 1.55 1.60 1.64 1.68 1.72 1.73 1.74 1.74 1.47 1.20 1.20
FFO
$1.57 1.79 1.96 1.97 2.04 2.05 2.07 2.12 2.31 2.12 2.06 1.96 1.95 1.84 1.69 1.51
EPS
$1.24 1.26 1.38 1.32 1.13 1.09 1.84 0.88 1.34 0.67 0.71 0.60 1.58 0.35 0.55 1.67
To verify that the dividend distribution is more strongly correlated with FFO than with EPS, compute the correlation coefficients relating the distributions to FFO and to EPS.

Answers

Answer:

Correlation coefficients relating the distributions to FFO = 0.8393

Correlation coefficients relating the distributions to EPS = –0.0880

Explanation:

Let X represents distributions, Y represents FFO, and, Z represents EPS.

Note: See the attached excel file for the calculations of Means of X, Y and Z as well as other values.

Therefore, we have:

Correlation coefficients relating the distributions to FFO = (Total of (X - Mean of X) * (Y - Mean of Y)) / ((Total of (X - Mean of X)^2) * (Total of (Y - Mean of Y)^2))^0.5 = 0.7529 / (0.8554 * 0.9408)^0.5 = 0.8393

Correlation coefficients relating the distributions to EPS = (Total of (X - Mean of X) * (Z - Mean of Z)) / ((Total of (X - Mean of X)^2) * (Total of (Z - Mean of Z)^2))^0.5 = –0.1391 / (0.8554 *  2.9200)^0.5 = –0.0880

Michael works as a sales representative for an oilfield supply business in West Texas. He sells highly technical safety equipment to his customers. Michael visits his customers on a regular basis to provide information about new products and to solve technical problems that may arise as his clients use the equipment. For Michael, personal selling works better than other forms of promotion because of _______.

Answers

Answer:

This question is incomplete, the options are missing. The options are the following:

a) The value of the product

b) The role of social media

c) The complexity of the product

d) The number of potential customers

And the correct answer is the option C: The complexity of the product.

Explanation:

To begin with, in the area of marketing when it comes to designing and developing a strategy for the company's campaign the for "Ps" are the essentials matter to have in mind. One of them, the "P" for promotion focus on the "how" to sell the product to the target audience and that matter the expertise find varies ways to do it. The personal selling is one of them and in this case actually the most appropiate one due to the complexity of the product that is being sold. Michael is right because this strategy allows the representative, who is an expertise in the product itself, to explain every little detail of the good and how it will adjust to every situation and more. So in order to accomplish the comfort of the client, the presence of the sale's agent is necessary and helpful in this case.

palmer corp is considering the purchase of new equipment the cost savings from the equipment would result in the annual increase income after tax of 133500 the equipment will have an initial cost of 534000 and have a 7 year life is the salvage value estimated to be 9000 what is estimated to be the payback period

Answers

Answer:

Payback period= 4 years

Explanation:

The payback period is the estimated length of time in years it takes  

the net cash inflow from a project to equate the net cash the initial cost.

Where a project is expected to generate a series of equal annual net cash inflow, the payback period can be calculated as:

The initial invest /Net cash inflow per year

So the payback period for project X

= $534,000/133,500

= 4 years

Payback period= 4 years

Golden Arch Company uses the periodic inventory system. It has compiled the following information in order to prepare the financial statements at December 31, 2019: Gross sales during 2019 $2,000,000 Sales returns and allowances during 2019 50,000 Beginning inventory, January 1, 2019 100,000 Ending inventory, December 31, 2019 120,000 Purchases during 2019 750,000 Required: Calculate the Cost of goods sold and Gross profit for the company during 2019.

Answers

Answer:

See below

Explanation:

Given the information above, cost of goods sold and the gross profit is calculated as;

Cost of goods sold for the company during 2019

= Beginning inventory + Net purchases - Ending inventory

= Beginning inventory + (Purchases - Purchase return) - Ending inventory

= $100,000 + ($750,000 - $0) - $120,000

= $100,000 + $750,000 - $120,000

= $730,000

Gross profit for the company during 2019

= Net Sales - Cost of goods sold

= (Gross sales - Sales return and allowances) - Cost of goods sold

= ($2,000,000 - $50,000) - $730,000

= $1,950,000 - $730,000

= $1,220,000

Your coin collection contains fifty 1952 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2060, assuming they appreciate at a 5.7% annual rate

Answers

Answer:

$19,909.88

Explanation:

Calculation to determine how much will your collection be worth when you retire in 2060,

Future value = Present value x (1 + r )n

Present value = 50

r = 5.7% or 0.057

n = 2060- 1952= 108

Plugging these values in the above mentioned formula, we shall get:

Future value= $ 50 x ( 1 + 0.057 )^108

Future value= $ 50 x ( 1 +.057 )^108

Future value= $19,909.88 Approximately

Therefore how much will your collection be worth when you retire in 2060 is $19,909.88

A manager has up to $190,000 available to invest in new construction equipment for the company. The manager must purchase a new dump truck and does not have a need for a second dump truck. The dumping trailer can only be purchased along with a dump truck. From the following list of possible equipment, identify all of the mutually exclusive alternatives and identify which of the alternatives are not acceptable.

No. Description Cost ($)
1 Loader 125,000
2 Dump Truck 170,000
3 Dump Truck 265,000
4 Dumping Trailer for the Dump Truck 25,000

Answers

Answer:

a. Mutually exclusive alternatives are

No.    Description          Cost ($)

2       Dump Truck         170,000

3       Dump Truck        265,000

b. The alternatives that are not acceptable are:

No.    Description                                              Cost ($)

1         Loader                                                     125,000

4        Dumping Trailer for the Dump Truck     25,000

Explanation:

a. Mutually exclusive alternatives imply alternatives that cannot occur together. In relation to this question, since the manager must purchase a new dump truck and does not have a need for a second dump truck, that means that two trucks are mutually exclusive. Therefore, mutually exclusive alternatives are

No.    Description          Cost ($)

2       Dump Truck         170,000

3       Dump Truck        265,000

b. Alternative are not acceptable if they do not meet the conditioned specified. In relation to this question, since the dumping trailer can only be purchased along with a dump truck it means that Dumping Trailer for the Dump Truck is not acceptable. Also, since Loader is not a trcuk, that means it is not also acceptable. Therefore, the alternatives that are not acceptable are:

No.    Description                                              Cost ($)

1         Loader                                                     125,000

4        Dumping Trailer for the Dump Truck     25,000

The following data are accumulated by Geddes Company in evaluating the purchase of $150,000 of equipment, having a four-year useful life:
Net Income Net Cash Flow Year
1 $42,500 $80,000 Year
2 27,500 65,000 Year
3 12,500 50,000 Year
4 2,500 40,000
Present Value of $1 at Compound Interest
Year 6% 10% 12% 15% 20%
1 0.943 0.909 0.893 0.870 0.833
2 0.890 0.826 0.797 0.756 0.694
3 0.840 0.751 0.712 0.658 0.579
4 0.792 0.683 0.636 0.572 0.482
5 0.747 0.621 0.567 0.497 0.402
6 0.705 0.564 0.507 0.432 0.335
7 0.665 0.513 0.452 0.376 0.279
8 0.627 0.467 0.404 0.327 0.233
9 0.592 0.424 0.361 0.284 0.194
10 0.558 0.386 0.322 0.247 0.162
a. Assuming that the desired rate of return is 15%, determine the net present value for the proposal.
b. Would management be likely to look with favor on the proposal?

Answers

Answer:

$24,460.50

Yes. this is because the NPV is positive

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.  

When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.

Cash flow in year 0 =  $-150,000

Cash flow in year 1 = $80,000

Cash flow in year 2 = $65,000

Cash flow in year 3 = $50,000

Cash flow in year 4 = $40,000

I = 15%

NPV = $24,460.50

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute

On January 1, 2022, Blue Company issued $3,400,000 face value, 7%, 10-year bonds at $3,650,227. This price resulted in a 6% effective-interest rate on the bonds. Blue uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on each January 1. (a) Prepare the journal entries to record the following transactions. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) 1. The issuance of the bonds on January 1, 2022. 2. Accrual of interest and amortization of the premium on December 31, 2022. 3. The payment of interest on January 1, 2023. 4. Accrual of interest and amortization of the premium on December 31, 2023.

Answers

Answer and Explanation:

The journal entries are shown below:

On 2022

For Jan 1

Cash Dr $3,650,227

  To Premium on bond payable $250,277

  To bond payable $3,400,000

(Being bond payable is issued for cash)

For Dec 31

Interest expense ($3,650,227 × 6%) $219,014

Premium on bond payable $18,986

     To Interest payable ($3,400,000 ×7%) $238,000

(Being interest expense is recorded)

On 2023

For Jan 1

Interest payable $238,000

        To Cash $238,000

(Being cash paid)

Interest expense ($3,650,227 - $18,986) × 6%) $217,874

Premium on bond payable $20,126

     To Interest payable ($3,400,000 ×7%) $238,000

(Being interest expense is recorded)

Production and sales estimates for April for Ibis Co. are as follows: Estimated inventory (units), April 1 9,000 Desired inventory (units), April 30 8,000 Expected sales volume (units): Territory A 3,500 Territory B 4,750 Territory C 4,250 Unit sales price $20 The budgeted total sales for April is a.$230,000 b.$250,000 c.$270,000 d.$200,000

Answers

Answer:

b.$250,000

Explanation:

The computation of the budgeted total sales is shown below:

= (Expected sales volume in territory A + Expected sales volume in territory B + Expected sales volume in territory C)

= (3,500 + 4,750 + 4,250) × $20

= $250,000

hence, the budgeted total sales for April month is $250,000

Therefore, the option b is correct

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