Answer:
Required A
Part 1
Actual overhead rate = Actual Overheads ÷ Actual hours used
Therefore,
Dep A = $35,640 ÷ 8,100 = $4.40
Dep B = $36,040 ÷ 1,440 = $25.03
Dep C = $38,220 ÷ 1,280 = $29.86
Part 2
Overheads applied = Overhead rate × hours used
Therefore,
Overheads applied = $4.40 × 650 hours = $2,860
Part 3
1. Actual costing delays product costing as the information is only available after the period.
2. Difficult to deal with for fluctuating or seasonal sales as new rates always need to be calculated.
Required B
Part 1
1. Product Costing can be done on time hence price setting can also be done at an earlier stage.
2. Rates are determined consistently for fluctuating or seasonal sales
Part 2
Predetermined overhead rate = Budgeted Overheads ÷ Budgeted hours
Therefore,
Dep A = $380,000 ÷ 95,000 = $4.00
Dep B = $420,000 ÷ 70,000 = $6.00
Dep C = $510,000 ÷ 35,000 = $14.57
Part 3
Overheads applied = Predetermined overhead rate × hours used
Therefore,
Overheads applied for January,
Department A = $4.00 × 8,100 hours = $32,400
Department B = $6.00 × 1,440 hours = $8,640
Department C = $14.57 × 1,280 hours = $18,649.60
Part 4
If Actual Overheads > Applied Overheads, we say overheads are under-applied,
and
If Applied Overheads > Actual Overheads, we say overheads are over-applied.
Therefore,
Department A :
Actual Overheads = $35,640
Applied Overheads = $32,400
Therefore, overheads are under-applied by $3,240
Department B :
Actual Overheads = $36,040
Applied Overheads = $8,640
Therefore, overheads are under-applied by $27,400
Department C :
Actual Overheads = $38,220
Applied Overheads = $18,649.60
Therefore, overheads are under-applied by $19,570.40
Part 5
Department A
Cost of Sales = $3,240
Department B
Cost of Sales = $27,400
Department C
Cost of Sales = $19,570.40
Part 6
Department A
Cost of Sales = $3,240
Department B
Cost of Sales = $27,400
Department C
Cost of Sales = $19,570.40
Explanations :
See the formulas and calculations tied together with the solution above.
Note that :
If Actual Overheads > Applied Overheads, we say overheads are under-applied,
and
If Applied Overheads > Actual Overheads, we say overheads are over-applied.
Also that ,
Balances in the Overheads Account are closed off against the Cost of Goods Sold in the Income Statement.
Today, you deposit $2,500 of cash in a savings account that earns 8.0% in annualized interest. One interest payment is received at the end of every year. You make no other deposits or withdrawals.
In five years, the amount of interest on interest you have earned in your savings account is closest to: ________
a. $173
b. $175
c. $177
d. $1,000
e. $1,177
Answer:
a. $173
Explanation:
The computation of the amount of interest earned in five years is shown below;
But before that following calculations need to be done
As we know that
Simple interest = Present value × rate of interest × time period
= $2,500 × 8% × 5
= $1,000
Now the future value is
Future value = Present value × (1 + rate of interest)^number of years
= $2,500 ×(1 + 8%)^5
= $2,500 × 1.4693280768
= $3,673
Now the compound interest is
Compound interest = Future value - Present value
= $3,673 - $2,500
= $1,173
Now interest on interest is
Interest on interest = Compound interest - Simple interest
= $1,173 - $1,000
= $173
Which type of team rarely has the
authority to unilaterally implement
any of their suggestions?
= Problem-Solving Teams
Explanation:
Problem-Solving Teams is the right one hahahahahahahabaha
You have the following information
Salam $1,000
Net profit margin= 5%.
Calculate Net Income
Answer:
$50
Explanation:
Net income will be the difference between the selling price and the Cost price.
Cost price is $1000
net profit margin is 5%, selling price will be
=$1000 + profit margin
= $1000 + (5/100 x 1000)
=$1000 + $50
=$1050
Net income = $1050 -$50
=$50
The teams are concerned with
rotating tasks and assignments
amongst its members are
Select one:
a. Self concerned
b. Self motivated
c. Self styled
d. Self-managed
= Self-managed
Answer:
Self-managed
Explanation:
the answer is Self-managed
The teams are concerned with
rotating tasks and assignments
amongst its members are
Select one:
a. Self concerned
b. Self m
Windhoek Mines, Ltd., of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the company has mineral rights. An engineering and cost analysis has been made, and it is expected that the following cash flows would be associated with opening and operating a mine in the area:
Cost of new equipment and timbers $310,000
Working capital required $190,000
Annual net cash receipts $125,000
Cost to construct new roads in year three $58,000
Salvage value of equipment in four years $83,000
Receipts from sales of ore, less out-of-pocket costs for salaries, utilities, insurance, and so forth. The mineral deposit would be exhausted after four years of mining. At that point, the working capital would be released for reinvestment elsewhere. The company's required rate of return is 20%.
Required:
A. Determine the net present value of the proposed mining project.
B. Should the project be accepted?
1. Yes.
2. No.
Answer:
NPV = -$78,318
Explanation:
cash flow 0 = -$310,000 - $190,000 = -$500,000
cash flow 1 = $125,000
cash flow 2 = $125,000
cash flow 3 = $125,000 - $58,000 = $67,000
cash flow 4 = $125,000 + $83,000 + $190,000 = $398,000
NPV = -$500,000 + $125,000/1.2 + $125,000/1.2² + $67,000/1.2³ + $398,000/1.2⁴ = -$78,318
what did andy davis do to change eddies behaviour?
Answer:
The Manager Andy Davis worked hard to improve Eddie's behavior and skills by implanting commitment in improving Eddie through team-based efforts.
Explanation:
Stock Y has a beta of 1.3 and an expected return of 15.3 percent. Stock Z has a beta of 0.70 and an expected return of 9.3 percent. If the risk-free rate is 5.5 percent and the market risk premium is 6.8 percent, the reward-to-risk ratios for stocks Y and Z are and percent, respectively. Since the SML reward-to-risk is percent, Stock Y is (Click to select) and Stock Z is:_______ . (Round your answers to 2 decimal places. (e.g., 32.16))
Answer:
Reward-to-risk ratio Y =7.54%
Reward-to-risk ratio Z = 5.43%
Since the SML reward-to-risk is 6.8%
Stock Y is Undervalued
Stock Z Overvalued
Explanation:
Calculation for the reward-to-risk ratios for stocks Y is 7.54% and Z is 5.43% respectively.
Reward-to-risk ratio Y = (15.3%-5.5%)/1.3
Reward-to-risk ratio Y =7.54%
Reward-to-risk ratio Z = (9.3%-5.5%)/0.7 =
Reward-to-risk ratio Z = 5.43%
Therefore the reward-to-risk ratios for stocks Y and Z are and percent, respectively
Since the SML reward-to-risk is 6.8%
Stock Y is undervalued while Stock Stock Z on the other hand is overvalued reason been that
Reward-to-risk ratio Y is high while the Reward-to-risk ratio is low .
The difference between the income
received from abroad for rendering factor services by the normal residents of the country to the rest of the world and income paid for the factor services rendered by
nonresidents in the domestic territory of a country is known as:
Select one:
a. Net Factor Income from Abroad
b. Capital consumption allowances
c. Depreciation
d. Subsidy
= Net Factor Income from Abroad
The difference between the income received from abroad for rendering factor services and income paid for the factor services rendered by nonresidents is known as Net Factor Income from Abroad. Thus the correct option is (B).
What is Income?Income refers to the money received by the individual over a period of time. In Business, income refers to the revenue generated after selling the goods and services to the customers.
Net factor Income from abroad refers to the income received from aboard after providing the services by the residents of the country to the rest of the world minus income paid for taking services from the domestic country.
Thus the correct option is (B).
Learn more about net factor income here:
https://brainly.com/question/16937226
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If the equipment account has a balance of INR. 22,50,000 and the accumulated depreciation
account has a balance of INR. 14,00,000, the book value of the equipment is
Select one:
O a. 8,50,000
O b. 17,00,000
O c. 14,00,000
O d. 36,50,000
Answer:
a. 8,50,000
Explanation:
Account balance INR, 22, 50,000
Accumulated depreciation INR. 14,00,000
The book value is the difference between the account balance and the accumulated depreciation
= INR, 22,50,000 - INR. 14,00,000
=INR, 8,50,000
Which of the following is NOT a
characteristic of organizations with
significant political activity?
Select one:
a. Win-win approach to reward
allocations
b. Role ambiguity
c. Opportunities for promotion
an advancement
d. Declining or scarce resources
= Win-win approach to reward
allocations
Explanation:
Win-win approach to reward
allocations
A bank has written a call option on one stock and a put option on another stock. For the first option the stock price is 50, the strike price is 51, the volatility is 28% per annum, and the time to maturity is nine months. For the second option the stock price is 20, the strike price is 19, the volatility is 25% per annum, and the time to maturity is one year. Neither stock pays a dividend, the risk-free rate is 6% per annum, and the correlation between stock price returns is 0.4. Calculate a 10-day 99% VaR.
Answer:
10-Day 99% VaR = 3.61
Explanation:
Data Given:
For First Option:
Stock Price = 50
Strike Price = 51
Volatility = 28% per annum
Time to maturity = 9 months
For Second Option:
Stock Price = 20
Strike Price = 19
Volatility = 25% per annum
Time to maturity = 12 months or 1 year
Risk Free Rate = 6% per annum
Correlation = 0.4
Find 10-day 99% VaR.
Solution:
First of all we need to refer the DerivaGem Model to dig out the change in price equation for both the options.
So, according to DerivaGem Model, We have following data:
For First Option:
Value = -5.413
Delta Value = -0.589
For Second Option:
Value = -1.014
Delta = -0.284
Change in Price = (Delta value of First Option x Stock Price)Y1 + (Delta value of the second option x Stock Price)Y2
Change in Price = (-0.589 x 50)Y1 + (-0.284 x 20)Y2
So, We will get the Change in Price Linear Equation for both the options.
Change in Price = -29.45Y1 -5.68Y2
Now, we have to calculate the Daily Volatility Percentage.
Formula:
Daily Volatility Percentage = Volatility/ Square root of number of days active in annum
Number of Days Active = 252
Volatility for First Option = 28%
Volatility for Second Option = 25%
Daily Volatility Percentage for First Option = 28%/[tex]\sqrt{252}[/tex]
Daily Volatility Percentage for First Option = 0.0176
Similarly,
Daily Volatility Percentage for Second Option = 25%/[tex]\sqrt{252}[/tex]
Daily Volatility Percentage for Second Option = 0.0157
Now, utilizing the above calculated data, we can find the one-day variance of change in price.
1-Day Variance =[tex](29.45^{2} *0.0176^{2}) + (5.68^{2} * 0.0157^{2}) - (2 * 29.45 * 0.0176 * 5.68 * 0.0157 * 0.4)[/tex]
Solving the above equation:
We get:
1-Day Variance = 0.2396
Now, we have to find the standard deviation of 1-Day Variance:
SD of 1-Day Variance = [tex]\sqrt{0.2396}[/tex]
SD of 1-Day Variance = 0.4895
So,
Now, in order to find the value of one day 99% VaR from the table, we have all the prerequisites.
So,
Value of One day 99% VaR from table = 2.33
But we need 10-Day 99% VaR.
So, number of days = 10
Hence,
10-Day 99% VaR = [tex]0.4895 * 2.33 * \sqrt{10}[/tex]
10-Day 99% VaR = 3.61
Identify the items/accounts from the following list that are likely to serve as source documents.
a. Sales ticket
b. Trial balance
c. Balance sheet
d.Telephone bill
e. Invoice from supplier
f. Company revenue account
g. Income statement
h. Bank statement
i. Prepaid insurance
Answer and Explanation:
The following are the items that considered as a source documents
a. sales ticket
b. Telephone bill
c. Invoice from supplier
d. The bank statement
These four items would be classified as source documents
Basically the source document is the information that used as a source for recording the accounting entries either in electronic form or in paper form
If the government issued license to pollute a total of 1,600 tons of emissions, the market price to emit 1 ton of emissions would equal:___________.
Answer:
$450 per ton.
Explanation:
The government has allowed to pollute 1600 ton of emission. The business has secured license from the government to run its business activities and drain the polluted waste in the sea. The total pollution allowed is 1600 tons and the cost of securing the license is $720,000. The cost per ton of emission would be $450.
The following data is from Netflicks Company for 2020.
Sales revenue $96,000
Beginning inventory 12,800
Purchases 64,000
For each separate case a through e, estimate ending inventory.
a. Markup is 50% on cost. ?
b. Markup is 60% on sales. ?
c. Markup is 25% on cost. ?
d. Markup is 40% on sales. ?
e. Markup is 60% on cost. ?
Answer:
a. $12,800
b. $38,400
c. $0
d. $19,200
e. $16,800
Explanation:
Given the following;
Sales revenue $96,000
Beginning inventory $12,800
Purchases $64,000
Recall that
Opening inventory + purchases - sales = closing inventory
Also;
a. If Markup is 50% on cost, let the cost of the items sold be T then
50% * T + T = 96,000
1.5T = 96,000
Divide both side by 1.5
T = $64,000
Hence the closing inventory Y may be derived as
Y = 12800 + 64000 - 64000
Y = $12,800
b. If Markup is 60% on sale, let the cost of the items sold be T then
T = $96,000 - (60% * $96,000)
= $96000 - $57600
= $38400
Ending inventory Y = 12800 + 64000 - 38400
Y = $38,400
c. If Markup is 25% on cost, let the cost of the items sold be T then
25% * T + T = 96,000
1.25T = 96,000
Divide both side by 1.25
T = $76,800
Hence the closing inventory Y may be derived as
Y = 12800 + 64000 - 76800
Y = 0
This means all items were sold.
d. If Markup is 40% on sale, let the cost of the items sold be T then
T = $96,000 - (40% * $96,000)
= $96000 - $38400
= $57600
Ending inventory Y = 12800 + 64000 - 57600
Y = $19,200
e. If Markup is 60% on cost, let the cost of the items sold be T then
60% * T + T = 96,000
1.6T = 96,000
Divide both side by 1.6
T = $60,000
Hence the closing inventory Y may be derived as
Y = 12800 + 64000 - 60,000
Y = $16,800
IN the economic order quantity model, if carrying costs increase while all other costs remain unchanged, the number of orders placed would be expected to:_______
a. increase.
b. decrease.
c. remain unchanged.
d. change without regard to carrying costs.
Answer:
b. decrease
Explanation:
In the EOQ model, if carrying costs increase while all other costs remain unchanged, the number of orders placed would be expected to decrease.
Carrying cost is placed in denominator of the EOQ formula hence as we increase denominator the total quantity will fall. If the carrying cost is high, then we would place lesser order to reduce such costs.
Also, if carrying costs decrease while all other costs remain unchanged, the number of orders placed would be expected to decrease because there is already excess of inventory due to which the new orders have to be decreased to utilize the already pending inventory.
Each year, Tom and Cindy Bates (married filing jointly) report itemized deductions of $20,000 (which includes an annual $4,000 pledge payment to their church). Upon the advice of a friend, they do the following: In early January 2019, they pay their 2018 pledge; during 2019, they pay the 2019 pledge; and in late December 2019, they prepay their 2020 pledge.
a. What are the Bateses trying to accomplish? To have their itemized deductions exceed the standard deduction .
b. What would the Bates' total itemized deductions be if all three church pledge payments were made in 2019? Assume that the itemized deductions of $20,000 already included one year of the church pledge payments. $ 12,000 What will be the Bates' tax saving if their marginal tax bracket is 24% for all three years? (Assume that the standard deduction amounts for 2019 and 2020 are the same.) By concentrating their charitable contributions, their tax savings becomes $ 2,000 X.
Answer:
a. What are the Bateses trying to accomplish?
To have their itemized deductions exceed the standard deduction.
In 2019, the standard deduction was $24,400, so in order for itemizing to make sense, the total amount itemized must be above that threshold.
b. What would the Bates' total itemized deductions be if all three church pledge payments were made in 2019? Assume that the itemized deductions of $20,000 already included one year of the church pledge payments. $ 12,000 What will be the Bates' tax saving if their marginal tax bracket is 24% for all three years? (Assume that the standard deduction amounts for 2019 and 2020 are the same.) By concentrating their charitable contributions, their tax savings becomes $ 2,000 X.
total itemized deductions = $20,000 + $4,000 + $4,000 = $28,000
tax savings = ($28,000 - $24,400) x 24% = $864
. Based on the Empirical Rule, what percent of the observations will lie between plus or minus two standard deviations from the mean?
Answer:
Empirical Rule or 68-95-99.7% Rule
Approximately 95% of the data fall within two standard deviations of the mean.
Suppose Kim purchases a new personal computer produced in China for $1,900. What is the effect on the components of GDP and GDP as a whole?
Instructions: If there is no impact on that component enter a O for $0. If there is a positive contribution to the component enter in a the whole dollar amount. If there is a negative contribution to the component enter a negative sign before the dollar amount. Be sure all boxes include a number.
Consumption _____$
Investment _______ $
Government Expenditures ________$
Net Exports _____ $
Change in GDP as a result of the transaction __________ $
Answer:
Consumption $ 1900
Investment 0
Government Expenditures 0
Net Exports -$ 1900
Change in GDP as a result of the transaction 0
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
The purchase of the laptop is part of durable consumption. So, consumption increases by $1900
The purchase of the laptop is not by a business or by the government. Investment and government expenditure remains unchanged.
The purchase of the laptop from China constitutes an import activity. Import increases. But import is a negative function of import, so net export decreases.
Total change in GDP = $1900 + 0 + 0 - $1900 = 0
How do financial intermediaries impact the market efficiency?
Answer:
help create efficient markets and lower the cost of doing business. Intermediaries can provide leasing or factoring
Explanation:
These intermediaries help create efficient markets and lower the cost of doing business . Intermediaries can provide leasing or factoring services , but do not accept deposits from the public . Financial intermediaries offer the benefit of pooling risk , reducing cost , and providing economies of scale , among others .
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Record the withdrawal if Benson on the assumption that she is paid $30,000 in partnership cash plus equipment recorded on the partnership books at $70,000 less its accumulated depreciation of $23,200 for her equity.
Answer:
(a) Dr Benson, Capital 138,000
Cr North, Capital 138,000
(b) Dr Benson, Capital 138,000
Cr Schmidt, Capital 138,000
(c) Dr Benson, Capital 138,000
Cr Cash 138,000
(d) Dr Benson, Capital 138,000
Dr Meir, Capital 28,500
Dr Lau, Capital 47,500
Cr Cash 214,000
(e) Dr Benson, Capital 138,000
Dr Accumulated depreciation-Equipment 23,200
Cr Meir, Capital 22,950
Cr Lau, Capital 38,250
Cr Equipment 70,000
Cr Cash30,000
Explanation:
Preparation of the journal entry to record Benson's withdrawal under each independent assumptions.
(a) Dr Benson, Capital 138,000
Cr North, Capital 138,000
(b) Dr Benson, Capital 138,000
Cr Schmidt, Capital 138,000
(c) Dr Benson, Capital 138,000
Cr Cash 138,000
(d) Dr Benson, Capital 138,000
Dr Meir, Capital 28,500
[(214,000-134,800)*3/8]
Dr Lau, Capital 47,500
[(214,000-138,000)*5/8]
Cr Cash 214,000
(e) Dr Benson, Capital 138,000
Dr Accumulated depreciation-Equipment 23,200
Cr Meir, Capital 22,950
[(138,000+23,200)-(70,000+30,000)*3/8]
Cr Lau, Capital 38,250
[(138,000+23,200)-(70,000+30,000)*5/8]
Cr Equipment 70,000
Cr Cash30,000
Breakthrough innovations account for ___% in the golden ratio on innovation
Group of answer choices
a. 20
b. 10
c. 5
d. 15
e. 25
Real and nominal income is calculated respectively at----
Select one:
a. Current price and current price
b. Constant price and Constant price
c. Current price and Constant Price
d. Constant price and Current price
= Constant price and Current price
Answer: Constant price and Current price
Explanation:
Real income and nominal income is calculated respectively at the constant price and the current price.
The constant prices has to do with the real values that has taken inflation into consideration. They are typically in real value.
The current prices are the prices of goods and services at a particular point in time. Current prices are typically in nominal value.
Therefore, the answer is option D.
Martin and sons: Job injuries, medical mal practice, and personal injury. Free initial consultation.
Smith and Jones: No fee unless you win your case. Specialize in worker's compensation legal issues
Thorn and Thomas: Employment law, contract negations, and employment safety issues
Williams Attorneys: State and federal unemployment fairness, medical malpractice law suits. Reasonable hour rates plus percentage of settlement.
An employee believes she was injured on the job due to unsafe situation. Based on the advertisement above, which of the following attorneys provides the necessary experience to pursue her claim and would ensure the employee the lowest overall cost.
A. Martine and Sons
B. Smith and Jones
C. Thorn and Thomas
D. Williams Attorneys
Answer: B. Smith and Jones
Explanation:
Based on the information given in the question, the attorneys that provides the necessary experience to pursue her claim and would ensure the employee the lowest overall cost will be Smith and Jones.
From the question, we are informed that Smith and Jones specialize in worker's compensation legal issues and since the employee believes she was injured on the job due to unsafe situation, this implies that the employee would need to be compensated and therefore, the right attorney will be Smith and Jones. They are also cheap when compared to others.
What can a speaker do to ensure that they are respectful of their audience, especially when speaking to a skeptical audience or an audience that has different values than their own? What considerations should a speaker take if they are presenting a topic that is new to the audience?
Answer:
Be Honest and Avoid Plagiarism. Credible public speakers are open and honest with their audiences. Identify Your Sources. Decide When to Cite. Cite Sources Properly. Understand Paraphrasing and Direct Quotations. Develop Accurate Citations. Set Responsible Speech Goals. Promote Diversity.
Sprague Company has been operating for several years, and on December 31, 207, presented the following balance sheet.
SPRAGUE COMPANY BALANCE SHEET DECEMBER 31, 2014
Cash $40,000
Accounts payable $80,000
Receivables 75000
Mortgage payable 140,200
Inventory 95000
Common stock ($1 par) 150,000
Plant assets (net) 220,000
Retained earnings 60,000 430000
The net income for 2017 was $25,000. Assume that total assets are the same in 2016 and 2017.
Compute each of the following ratios. for each of the four, indicate the manner in which it is computed and its significance as tool in the analysis of the financial soundness of the company
a) Current ratio
b) Acid-test ratio
c) Debt to assets ratio
d) Return on asset
Answer:
A. Current Ratio= 2.63
B. Acid-Test Ratio = 1.44
C. Debt to Assets Ratio 51.16%
D. Return on assets 5.81%
Explanation:
a. Calculation forn Current Ratio
First step is to Calculate the Total Current Assets
Cash 40,000
Receivables 75,000
Inventory 95,000
Total Current Assets 210,000
Now let calculate Current Ratio
Current Ratio= Current Assets / Current Liabilities
Current Ratio=210,000/80,000
Current Ratio= 2.63
b Calculation for Acid-Test Ratio
Acid-Test Ratio=(Current Assets - Inventory) / Current Liabilities
Acid-Test Ratio =(210,000-95,000)/80,000
Acid-Test Ratio =115,000/80,000
Acid-Test Ratio = 1.44
c. Calculation for Debt to Assets Ratio
First step is to calculate total Debt
Accounts payable 80,000
Mortgage payable 140,000
Total Debt 220,000
Now let calculate the Debt to Assets Ratio
Debt to Assets Ratio= Total Debt/ Total Assets
Debt to Assets Ratio=220,000/430,000
Debt to Assets Ratio= 51.16%
d. Calculation for Return on assets
Return on assets= Net Income/ Average Assets
Return on assets=25,000/430,000
Return on assets 5.81%
Prepare a one page memo for your boss briefly summarizing how you concluded the meeting. More importantly, recommend to your boss a course of action for your organization moving forward. Be sure to fully support your recommendations.
Answer:
Memo for business promotion
Explanation:
To : Manager
From : Finance Officer
Subject : Actions for moving forward
The business meeting has been concluded successfully and minutes of the meeting is prepared in the document. The business needs to be moved forwards as there are many competitors entering in the market. The business need to focus on introducing new products which are demanded by the customer and allow some customization according to customer needs. The packaging of the products also needs to be revised as the presentation is also important for customer to make a buy decision. The business profits will increase and the sales will be high.
Further minutes of the meeting are attached with the memo.
Sign: Edward,
Why might Gross Domestic Product not be the most accurate measure of an economy's health? (Explain at least 3 reasons)
Answer: See explanation
Explanation:
The gross domestic product is the value of an economy's final goods which the economy produces. The reasons why Domestic Product may not be the most accurate measure of an economy's health include:
• It doesn't take into account the value of the works of housewives, volunteers etc.
• The gross domestic product doesn't measure the quality of education that is offered, the children's health, happiness etc.
• GDP takes into consideration the market prices and therefore, activities that are outside the market are left out and not measured.
During the year, the Senbet Discount Tire Company had gross sales of $1.14 million. The firm’s cost of goods sold and selling expenses were $533,000 and $223,000, respectively. The firm also had notes payable of $880,000. These notes carried an interest rate of 7 percent. Depreciation was $138,000. The firm’s tax rate was 35 percent.
What was the firm’s operating cash flow? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Round your answer to the nearest whole number, e.g., 32.)
Answer:
$319,460
Explanation:
Calculation for the firm’s operating cash flow
First step is to calculate EBIT and Taxes
Sales $1,140,000
Less Cost of goods sold 533,000
Less Selling costs 223,000
Less Depreciation 138,000
EBIT $246,000
Interest 61,600
(7%*$880,000)
Taxable income $184,400
(246,000-61,600)
TAXES 64,540
(35%*$184,400)
Now let calculate the firm’s operating cash flow using this formula
Operating cash flow = EBIT + Depreciation - Taxes
Let plug in the formula
Operating cash flow = $246,000 + $138,000 - $64,540
Operating cash flow = $319,460
Therefore the firm’s operating cash flow is $319,460
What is the deference between research and report
Case studies can _________ be cross-representational from company to company.
rarely
always
never
usually