A cover letter is a particular type of letter that is attached with other documents and provides a summary of the contents of the other document. Think about submitting a cover letter together with your CV.
How should a Cover Letter be Written?An cover letter that you submit with your resume outlines your career goals and your qualifications for the position you're applying for. Below is a sample of a cover letter:
13 September,
Mr. Woodluck,
Shippers Agency,
New York.
Dear Mr. Woodluck,
Application for Internship Position
I am glad to find the opening for an internship slot at your organization. I am a dynamic graduate of accounting with tested experience of handling complex accounting transactions while maintaining positive results.
If I am considered for this role, I will bring forth my experience in computing which I have garnered through my undergraduate study.
Kindly find attached to this letter, my CV for your perusal.
Warm Regards,
Johnson Smith.
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On January 1, 2021, Vacation Destinations issues $35 million of bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below:
(1) (2) (3) (4) (5)
Cash Paid Interest Increase in Carrying
Date for Interest Expense Carrying Value Value
1/1/2021 $ 32,512,829
6/30/2021 $ 1,050,000 $ 1,137,949 $ 87,949 32,600,778
12/31/2021 1,050,000 1,141,027 91,027 32,691,805
1. Were the bonds issued at face amount, a discount, or a premium?
2. What is the original issue price of the bonds? (Enter your answer in dollars, not millions. (i.e., $5.5 million should be entered as 5,500,000).)
Issue Price: ___
3. What is the face amount of the bonds? (Enter your answer in dollars, not millions. (i.e., $5.5 million should be entered as 5,500,000).)
Face Amount: ___
4. What is the stated annual interest rate?
5. What is the market annual interest rate? (Round your answer to the nearest whole percent.)
6. What is the total cash paid for interest assuming the bonds mature in 10 years? (Enter your answer in dollars, not millions. (i.e., $5.5 million should be entered as 5,500,000).)
Answer:
Vacation Destinations
1. The bonds were issued at a discount.
2. The original issue price of the bonds is: $32,512,829 ($9,28.94 per $1,000).
3. Face Amount is: $35,000,000
4. The stated annual interest rate is 6%.
5. The market annual interest rate is 7%.
6. The Total cash paid for interest, assuming the bonds mature in 10 years is $21,000,000.
Explanation:
a) Data and Calculations:
Face value of bonds = $35,000,000
Interest rate = 6% ($1,050,000/$35,000,000 * 100) x 2
Discounted value $32,512,829
Discounts = $2,487,171
Amortization of discounts during the first interest payment = $87,949
Amortization of discounts during the December 31, 2021 interest payment = $91,027
Original issue price = $9,28.94 ($32,512,829/35,000)
Market annual interest rate = ($1,137,949/$32,512,829 * 100) * 2 = 7%
Total cash paid for interest = $1,050,000 * 10 * 2 = $21,000,000
Portions of the bond amortization schedule appear below:
Date Cash Paid Interest Expense Increase Carrying amount
1/1/2021 $ 32,512,829
6/30/2021 $ 1,050,000 $ 1,137,949 $ 87,949 32,600,778
12/31/2021 1,050,000 1,141,027 91,027 32,691,805
A wedding party hired a sole proprietorship to cater their wedding, and the sole proprietorship had an employee handle the entire job. If the entire wedding party gets food poisoning, the principal is liable. The employee of the sole proprietorship is also liable because he handled the entire job.
Explanation:
well I will say yes meaning true because he or she was put in charge of the entire job
A firm is operating in the United States with only two other competitors in the industry. a. It is likely this industry would be characterized as: multiple choice 1 monopolistically competitive. perfectly competitive. oligopoly. pure monopoly. b. Firms in this industry will likely earn: multiple choice 2 a normal profit. an economic profit. an economic loss. c. If foreign firms begin supplying the product, increasing the number of competitors, it is likely that: multiple choice 3 economic profits will fall.
Answer:
a. oligopoly.
b. an economic profit.
c. economic profits will fall.
Explanation:
An oligopoly can be defined as a market structure comprising of a small number of firms (sellers) offering identical or similar products, wherein none can limit the significant influence of others.
Hence, it is a market structure that is distinguished by several characteristics, one of which is either similar or identical products and dominance by few firms.
The characteristics of an oligopolistic market structure are;
I. Mutual interdependence between the firms.
II. Market control by many small firms.
III. Difficult entry to new firms.
Hence, a firm operating in the United States of America with only two other competitors in the industry is likely to be an industry that would be characterized as oligopoly.
Additionally, business firms operating in this industry (oligopolistic market) will likely earn an economic profit. Also, if foreign business firms begin supplying the product, increasing the number of competitors, it is likely that economic profits will fall because the industry is now being competitive and controlled by other business firms.
In economics, market structure refers to how different industries are distinguished depending on the degree and form of product and services rivalry. It's based on the features that influence the outcomes and behaviors of businesses in a given market.
a) An oligopoly is a business that operates in the United States with only two other competitors in the same industry.
Reason:
An oligopoly is a market structure with a small number of enterprises and high entry barriers. A competitive environment in which there are just a few vendors reveals to be Oligopoly because there are only two competitors available in the business.
b) Oligopolistic businesses will almost certainly make an economic profit.
Reason:
In an oligopoly, all firms would have to work together to raise prices and make a bigger profit. The bulk of oligopolies form in industries where goods are essentially homogeneous and give essentially the same advantage to customers.
c) Economic earnings are expected to diminish or fall if international enterprises begin to supply the product, increasing the number of competitors.
Reason:
As the supply curve changes to the right, the market price begins to fall, and as a result, existing and new enterprises' economic earnings fall. Due to the entry of new enterprises, which pulls down the market price, economic profit is zero in the long term.
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Brooks Corporation has a Food Services department that provides food for employees in all other departments of the company. For September, variable food costs were budgeted at $4 per meal, based on 14,000 meals served during the month. At the end of the month, it was determined that 15,000 meals had been served at a total cost of $70,000. What is the amount of the variable food costs that should be charged to the other departments of the company at the end of the month
Answer:
the amount that should be charged for the other department is $60,000
Explanation:
The computation of the amount that should be charged for the other department is shown below:
= Variable cost per meal × number of meals
= $4 × 15,000 meals
= $60,000
hence, the amount that should be charged for the other department is $60,000
So the same would be relevant
Bank Sohar declares the profit for the year ended 2019-20. They makes profit:
a.
When bank Sohar asset is less than the liability
b.
When their rate of interest on loan is greater than the deposit rates
c.
When their bank liability is greater than their assets
d.
When their rate of interest on loan is less than the deposit rates
Answer:
Option B
Explanation:
A bank makes profit when it gets more returns on the loan given as compared to the interest given on the deposited money.
Hence, option B is correct. In case A and C liability is greater than asset and hence this situation does not signify a profitable situation.
Also, option D is just the opposite of option B (profitable situation).
Instructions: Please make sure that you show all your work when solving the problems. Feel free to make any assumptions whenever you feel necessary. Just make sure that you clearly state your assumptions.
Analysts expect MC, Co. to maintain a dividend payout ratio of 35% and enjoy an expected growth rate of 12% per year for the next 5 years. After the fifth year, all earnings will be paid out as dividends. The required rate of return on MC, Co equity is 8%.
a. Given that the last dividend paid was $0.5 and the current market price of the stock is $15, what growth rate does the market expect for MC, Co?
b. At what price would the analysts value the stock under their own expectations?
c. Suppose 5 years have gone by and the company has to make a decision on how to move forward. It can either pay out all earnings as dividends without considering any growth opportunities, or choose a growth strategy where the company will expand into new lines of business in global markets. If the management chooses this strategy, the payout ratio will be reduced down to 20% from 35%, and the company will be able to maintain a growth rate of 7% forever. Which strategy should the management choose to maximize shareholder value?
Answer:
Explanation:
From the given information:
The current price = [tex]\dfrac{Dividend(D_o) \times (1+ Growth \ rate) }{\text{Cost of capital -Growth rate}}[/tex]
[tex]15 = \dfrac{0.50 \times (1+ Growth rate)}{8\%-Growth rate}[/tex]
[tex]15 \times (8 -Growth \ rate) = 0.50 +(0.50 \times growth \ rate)[/tex]
[tex]1.20 - (15 \times Growth \ rate) = 0.50 + (0.50 \times growth \ rate)[/tex]
[tex]0.70 = (15 \times growth \ rate) \\ \\ Growth \ rate = \dfrac{0.70}{15.50} \\ \\ Growth \ rate = 0.04516 \\ \\ Growth \ rate \simeq 4.52\% \\ \\[/tex]
2. The value of the stock
Calculate the earnings at the end of 5 years:
[tex]Earnings (E_o) \times Dividend \ payout \ ratio = Dividend (D_o) \\ \\ Earnings (E_o) \times 35\% = \$0.50 \\ \\ Earnings (E_o) =\dfrac{\$0.50}{35\%} \\ \\ = \$1.42857[/tex]
[tex]Earnings (E_5) year \ 5 = Earnings (E_o) \times (1 + Growth \ rate)^{no \ of \ years} \\ \\ Earnings (E_5) year \ 5 = \$1.42857 \times (1 + 12\%)^5 \\ \\ Earnings (E_5) year \ 5 = \$2.51763[/tex]
Terminal value year 5 = [tex]\dfrac{Earnings (E_5) \times (1+ Growth \ rate)}{Interest \ rate - Growth \ rate}[/tex]
[tex]=\dfrac{\$2.51763\times (1+0.04516)}{8\%-0.04516}[/tex]
=$75.526
Discount all potential future cash flows as follows to determine the stock's value:
[tex]\text{Value of stock today} =\bigg( \sum \limits ^{\text{no of years}}_{year =1} \dfrac{Dividend (D_o) \times 1 +Growth rate ) ^{\text{no of years}}}{(1+ interest rate )^{no\ of\ years} }[/tex]
[tex]+ \dfrac{Terminal\ Value }{(1+interest \ rate )^{no \ of \ years}} \Bigg)[/tex]
[tex]\implies \bigg(\dfrac{\$0.50\times (1 + 12\%)^1) }{(1+ 8\%)^{1} }+ \dfrac{\$0.50\times (1+12\%)^2 }{(1+8\% )^{2}}+ \dfrac{\$0.50\times (1+12\%)^3 }{(1+8\% )^{3}} + \dfrac{\$0.50\times (1+12\%)^4 }{(1+8\% )^{4}} + \dfrac{\$0.50\times (1+12\%)^5 }{(1+8\% )^{5}} + \dfrac{\$75.526}{(1+8\% )^{5}} \bigg )[/tex]
[tex]\implies \bigg(\dfrac{\$0.5600}{1.0800}+\dfrac{\$0.62720}{1.16640}+\dfrac{\$0.70246}{1.2597}+\dfrac{\$0.78676}{1.3605}+\dfrac{\$0.88117}{1.4693}+ \dfrac{\$75.526}{1.4693} \bigg)[/tex]
=$ 54.1945
As a result, the analysts value the stock at $54.20, which is below their own estimates.
3. The value of the stock
Calculate the earnings at the end of 5 years:
[tex]Earnings (E_o) \times Dividend payout ratio = Dividend (D_o) \\ \\ Earnings (E_o) \times 35\% = \$0.50 \\ \\ Earnings (E_o) =\dfrac{\$0.50}{35\%}\\ \\ = \$1.42857[/tex]
[tex]Earnings (E_5) year \ 5 = Earnings (E_o) \times (1 + Growth \ rate)^{no \ of \ years} \\ \\ Earnings (E_5) year \ 5 = \$1.42857 \times (1 + 12\%)^5 \\ \\ Earnings (E_5) year \ 5 = \$2.51763 \\ \\[/tex]
Terminal value year 5 =[tex]\dfrac{Earnings (E_5) \times (1+ Growth \ rate)\times dividend \ payout \ ratio}{Interest \ rate - Growth \ rate}[/tex]
[tex]=\dfrac{\$2.51763\times (1+ 7 \%) \times 20\%}{8\%-7\%}[/tex]
=$53.8773
Discount all potential cash flows as follows to determine the stock's value:
[tex]\text{Value of stock today} =\bigg( \sum \limits ^{\text{no of years}}_{year =1} \dfrac{Dividend (D_o) \times 1 + Growth rate ) ^{\text{no of years}}}{(1+ interest rate )^{no \ of\ years} }+ \dfrac{Terminal \ Value }{(1+interest \ rate )^{no \ of \ years }} \bigg)[/tex]
[tex]\implies \bigg( \dfrac{\$0.50\times (1 + 12\%)^1) }{(1+ 8\%)^{1} }+ \dfrac{\$0.50\times (1+12\%)^2 }{(1+8\% )^{2}}+ \dfrac{\$0.50\times (1+12\%)^3 }{(1+8\% )^{3}} + \dfrac{\$0.50\times (1+12\%)^4 }{(1+8\% )^{4}} + \dfrac{\$0.50\times (1+12\%)^5 }{(1+8\% )^{5}} + \dfrac{\$53.8773}{(1+8\% )^{5}} \bigg)[/tex]
[tex]\implies \bigg (\dfrac{\$0.5600}{1.0800}+\dfrac{\$0.62720}{1.16640}+\dfrac{\$0.70246}{1.2597}+\dfrac{\$0.78676}{1.3605}+\dfrac{\$0.88117}{1.4693}+ \dfrac{\$53.8773}{1.4693} \bigg)[/tex]
=$39.460
As a result, the price is $39.460, and the other strategy would raise the value of the shareholders. Not this one, since paying a 100% dividend would result in a price of $54.20, which is higher than the current price.
Notice that the third question depicts the situation after 5 years, but the final decision will be the same since we are discounting in current terms. If compounding is used, the future value over 5 years is just the same as the first choice, which is the better option.
The presumption in the second portion is that after 5 years, the steady growth rate would be the same as measured in the first part (1).
describe the difference between real gdp and nominal gdp.
Answer:
You Should study :))
Explanation:
What is price discrimination and how do movie theaters and restaurants practice price discrimination?
You run a construction firm. You have just won a contract to build a government office building Building it will require an investment of $10 million today and $5 million in one year. The government will pay you $20 million in one year upon the building's completion. Suppose the cash flows and their times of payment are certain, and the risk-free interest rate is 10%. What is the NPV of this opportunity? b. How can your firm turn this NPV into cash today?
Answer:
$3.64 million
The Npv can be turned into cash by borrowing $18.18 million today and paying back in one year time with the $20 million that would be paid
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
Cash flow in year 0 = $-10 million
Cash flow in year 1 = $20 million - $5 million = 15 million
I = 10%
NPV = 3.63 million
The Npv can be turned into cash by borrowing $18.18 million today as the present value of 20 million is 18.18 million
20 million / 1.10 = 18.18 million
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
Outdoor Gear Corporation manufactured 1,000 coolers during October. The following variable overhead data relates to October: Variable overhead spending variance $1,300 Unfavorable Variable overhead efficiency variance $182 Unfavorable Budgeted machine hours allowed for actual output 608 machine hours Actual cost per machine hour $28 Budgeted cost per machine hour $26Calculate the variable overhead flexible-budget variance. $1,118 favorable $1,118 unfavorable $1,482 unfavorable $1,482 favorable
Answer:
$1,482 unfavorable
Explanation:
Calculation to determine the variable overhead flexible-budget variance
Using this formula
Variable overhead flexible-budget variance=Variable overhead spending variance Unfavorable + Variable overhead efficiency variance Unfavorable
Let plug in the formula
Variable overhead flexible-budget variance=$1,300 (U) + $182 (U)
Variable overhead flexible-budget variance= $1,482 (U)
Therefore the variable overhead flexible-budget variance is $1,482 unfavorable
Maui Resort Inc. determined that the balance in its deferred tax asset account on December 31, 2020, was $50,000. Management reviewed all available positive and negative evidence to estimate that 30% of the deferred tax asset was more likely than not to be realized. The valuation allowance for deferred tax assets has a December 31, 2020, unadjusted balance of $4,000 (credit).
Required:
Record the entry to adjust the allowance on December 31, 2020.
Answer:
Maui Resort Inc.
Journal Entry:
December 31, 2020:
Debit Loss from Unrealizable DTA $31,000
Credit Allowance for Unrealizable DTA $31,000
To record the loss from unrealizable DTA and increase the balance to $35,000 (credit).
Explanation:
a) Data and Calculations:
December 31, 2020 Deferred Tax Asset (DTA) = $50,000
Estimate of realizable DTA = 30% of $50,000 = $15,000
Allowance for unrealizable DTA for 2020 = 70% of $50,000 = $35,000
Loss from unrealizable DTA = $31,000 ($35,000 - $5,000)
b) Like the Allowance for Doubtful Accounts, the DTA Valuation Allowance is a contra-account to the Deferred Tax asset Account. It shows the amount of the deferred tax asset with a more than 50% probability of being lost or unutilized in the future as a result of the non-availability of sufficient future taxable income.
Suppose two types of firms wish to borrow in the bond market. Firms of type A are in good financial health and are relatively low risk. The appropriate premium over the risk-free rate for lending to these firms is 2%. Firms of type B are in poor financial health and are relatively high risk. The appropriate premium over the risk-free rate for lending to these firms is 6%. As an investor, you have no other information about these firms except that type A and type B firms exist in equal numbers.
A. At what interest rate would you be willing to lend if the risk-free rate were 6%?
B. Would this market function well? What type of asymmetric information problem does this example illustrate?
Answer:
A. I would be willing to lend at average rate of 10%
B-1. No, this market will not function well.
B-2. This example illustrates an adverse selection problem.
Explanation:
A. At what interest rate would you be willing to lend if the risk-free rate were 6%?
Appropriate interest rate for type A firm bond = Premium over the risk-free rate of Type A firm + Risk-free rate = 2% + 6% = 8%
Appropriate interest rate for type B firm bond = Premium over the risk-free rate of Type B firm + Risk-free rate = 6% + 6% = 12%
Average rate = (Appropriate interest rate for type A firm bond + Appropriate interest rate for type B firm bond) / 2 = (8% + 12%) / 2 = 10%
Since the probability of any of the two firms is equal and I do not have the knowledge of which type of firm they are dealing with, I would be willing to lend at average rate of 10%.
B-1. Would this market function well?
No, this market will not function well.
The reason is that the average rate of 10% is higher than the Appropriate interest rate for type A firm bond of 8%. This would make the type A firm to withdraw from the market and only type B firm will be left in the market.
B-2. What type of asymmetric information problem does this example illustrate?
This example illustrates an adverse selection problem. This is because after type A firm which is a desirable leaves the market, only type B firm which is the less desirable firms will be willing to borrow. This makes the quality of the market to detoriorate.
What kind of report is a summary of a company's total sales over a five-year period?
a product list
a market research report
a sales volume report
a customer list
Neville is a lawyer at a large law firm where he earns a salary of $170,000 per year. He is thinking of leaving the firm to set up his own law office. To do this, he would need to invest $140,000 of his savings, which currently earns 5% in interest each year. He estimates that if he starts a law office, his annual revenue will be $510,000, and his explicit financial costs will be $300,000. How much would Neville earn in economic profits or losses if he starts his own law office
Answer:
$33,000
Explanation:
Economic profit = accounting profit - implicit cost
Accounting profit= total revenue - explicit cost
Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
Accounting profit = $510,000 - $300,000 = $210,000
Implicit costs = amount he would forgo as salary in the large law firm and interest he would lose on his investment
Interest he would lose on his investment = 0.05 x 140,000 = $7000
Implicit cost = $170,000 + $7000 = $177,000
Economic profit = $210,000 - $177,000 = $33,000
Ramirez's adjusted basis in a passive activity is $45,000 at the beginning of the year. His loss from the activity for the current year is $14,200. Ramirez has wages of $65,000 and dividend income of $300. At year-end, Ramirez has the following:
1. Adjusted basis in the passive activity: $______
2. At-risk amount in the passive activity: $________
3. A suspended passive loss: $_______
Answer:
1. $30,800
2. $30,800
3. $14,200
Explanation:
1. Calculation to determine the Adjusted basis in the passive activity
Using this formula
Adjusted basis in the passive activity=Beginning adjusted basis in a passive activity-Loss activity for the current year
Adjusted basis in the passive activity=$45,000-$14,200
Adjusted basis in the passive activity=$30,800
Therefore Adjusted basis in the passive activity is $30,800
2. Calculation to determine At-risk amount in the passive activity
Using this formula
At-risk amount=Beginning adjusted basis in a passive activity-Loss activity for the current year
Let plug in the formula
At-risk amount=$45,000-$14,200
At-risk amount=$30,800
Therefore At-risk amount in the passive activity is $30,800
3. Based on the information given we were told that His loss amount from the activity for the current year was the amount of $14,200 which means that the suspended PASSIVE LOSS will be $14,200.
is Company uses an ABC system. Which of the following statements is/are correct with respect to ABC? I. All cost allocation bases used in ABC systems are cost drivers. II. ABC systems are useful in manufacturing, but not in merchandising or service industries. III. ABC systems can eliminate cost distortions because ABC develops cost drivers that have a cause-and-effect relationship with the activities performed.
Answer:
I. All cost allocation bases used in ABC systems are cost drivers.
III. ABC systems can eliminate cost distortions because ABC develops cost drivers that have a cause-and-effect relationship with the activities performed.
Explanation:
I. is TRUE since the basis of ABC costing is determining, quantifying, and using cost drivers to allocate overhead costs.
III, is TRUE since the advantage of ABC costing is allocating costs based on cause and effect relationships.
II. ABC systems are useful in manufacturing, but not in merchandising or service industries. ⇒ FALSE
ABC costing can also be used for merchandising and service industries, although, it is mostly used in manufacturing businesses.ways in which they can create an environment that promotes
creative thinking in the workplace
The correct answer to this open question is the following.
Although you did not provide further context or reference, we can comment on the following.
The ways in which they can create an environment that promotes
creative thinking in the workplace are the following.
-Promoting open communication at any time. People in the company have to know that the leader's doors are always open. This is crucial.
-Respect diversity and cultural differences. This way people of diverse backgrounds are going to feel trusted and would express themselves freely and creatively.
-Invite people to collaborate. Do it on a daily basis, encouraging them to express their ideas, although they considered strange or crazy. You never know when a crazy idea will be a great idea in the corporate world.
-Foster a culture of change and innovation. Welcome any suggestion and never criticize it.
-Offer continual education programs and training so employees have always something to think of and learn.
Break-even sales and sales to realize operating incomeFor the current year ended March 31, Cosgrove Company expects fixed costs of $465,000, a unit variable cost of $62, and a unit selling price of $92.a. Compute the anticipated break-even sales (units).fill in the blank 1 unitsb. Compute the sales (units) required to realize operating income of $108,000.fill in the blank 2 units
Answer:
Break even point in units=15,500 units
Units to achieve target profit=19,100 units
Explanation:
Break-even point is the level of activity at which a firm must operate such that its total revenue will equal its total costs. At this point, the company makes no profit or loss because the total contribution exactly equals the total fixed costs
Break-even point (in units) is calculated using this formula:
Break even point in units = Total general fixed cost/ (selling price - Variable cost)
Break even point in units= $465,000/(92-62)=15,500 units
Units to achieve target profit = (Total general fixed cost for the period + target profit)/ contribution per unit
Units to achieve target profit of 108,000 = ($465,000+ 108,000)/ (92-62)=19,100 units
Break even point in units=15,500 units
Units to achieve target profit=19,100 units
Waterway Industries purchased land as a factory site for $1335000. Waterway paid $120000 to tear down two buildings on the land. Salvage was sold for $8300. Legal fees of $5220 were paid for title investigation and making the purchase. Architect's fees were $46000. Title insurance cost $3900, and liability insurance during construction cost $4200. Excavation cost $15280. The contractor was paid $4500000. An assessment made by the city for pavement was $9700. Interest costs during construction were $258000. The cost of the land that should be recorded by Waterway Industries is $1479620. $1465520. $1469920. $1455820.
Answer:
$1,465,520
Explanation:
Calculation of cost of the land that should be recorded by Water ways industries
Cost of land = Purchase price + demolition of building - sales of salvage + legal fees + Title insurance cost + Payment assessment
Cost of land = $1,335,000 + $120,000 - $8,300 + $5,220 + $3,900 + $9,700
Cost of land = $1,465,520
Two law firms in a community handle all the cases dealing with consumer suits against companies in the area. The Abercrombie firm takes 40% of all suits, and the Olson firm handles the other 60%. The Abercrombie firm wins 70% of its cases, and the Olson firm wins 60% of its cases.
a. Develop a probability tree showing all marginal, conditional, and joint probabilities.
b. Develop a joint probability table.
c. Using Bayes’ rule, determine the probability that the Olson firm handled a particular case, given that the case was won.
Answer:
Part A: Diagram
Psrt B:
Joint Probability Table
Firms Success Failure
Abercrombie 0.28 0.12
Oslon 0.36 0.24
Part C : P (O/S) =0.5625
Explanation:
The probability tree can be drawn as follows
Part A:
║⇒⇒P (A) = 0.4⇒⇒⇒⇒║⇒⇒⇒⇒P (S/A)= 0.7⇒⇒⇒⇒ P (A∩S)= 0.28
║ ║
║ ║⇒⇒⇒⇒ P (F/A)= 0.3⇒⇒⇒ P (A∩F)= 0.12
║
║⇒⇒⇒P (O)= 0.6⇒⇒⇒⇒║⇒⇒⇒⇒P (S/O)= 0.6⇒⇒ P (O∩S)= 0.36
║
║⇒⇒⇒P (F/O)= 0.4⇒⇒ P (O∩F)= 0.24
The marginal Probability of the two firms
P (A)= 0.4
P (O)= 0.6
Where P (A) is the probability of Abercrombie firm
P (O) is the probability of Olson firm
The conditional probabilities are given by
P (S/A)= 0.7
P (F/A)= 0.3
Where P (S/A) is the conditional probability of Success of Abercrombie firm
P (F/A) is the conditional probability of failure of Abercrombie firm
Similarly
P (S/O)= 0.6
P (F/O)= 0.4
P (S/O) is the conditional probability of Success of Oslon firm
P (F/O) is the conditional probability of failure of Oslon firm
The probability table is given by
Firms Marginal Conditional Joint
Abercrombie 0.4 0.7 0.28
0.3 0.12
Oslon 0.6 0.6 0.36
0.4 0.24
Joint Probability Table
Firms Success Failure
Abercrombie 0.28 0.12
Oslon 0.36 0.24
Part C :
Using Bayes Rule:
P (O/S) = P ( O) P( S/O)/ P ( O) P( S/O)+ P (A) P(S/ A)
= 0.6*0.6/ 0.6*0.6+0.4*0.7
=0.36/ 0.36+0.28
=0.5625
2. The poor quality of selection will mean extra cost on ... and supervision
a Training
b. Recruitment
Work quality
d. None of the above
Answer:
A training
Explanation:
This is the correct answer you want
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It will means extra cost of training and supervision.
Hiring process is a process that requires careful and thorough observation from the hiring company.
Efforts are made to ensure the right people are recruited into the system to maintain standard of quality produced by the organisationWrong recruitment of staff could prove costly to an organisation as output will be affected.Selection process is basically the process of choosing numbers of qualified applicant among the rest.Poor selection process happens when the effort to filter qualified applicant among the applicants for the job was unsuccesful
In conclusion, this poor quality of selection will lead to having a pool of both unqualified and qualified applicant which will result to extra cost on Training and Supervision.
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JoeFit, Inc. is using the basic FOQ model to manage its inventory for K2 microprocessors. The setup cost per order is $200 and the inventory carrying cost is $0.05 per chip per year. Suppose the company is placing the optimal order quantity in each order and the resulting total annual setup and carrying costs are $32,000. What is the annual demand of the K2 microprocessors
Answer:
51.2 million
Explanation:
The computation of the annual demand is shown below:
As we know that the total annual setup cost and the carrying cost would be equivalent to EOQ
Since the total annual setup cost & carrying cost is $32,000
So, for each it would be $16,000
Now
Total number of orders is
= $16000 ÷ $200
= 80 orders
And, Total inventory carrying cost = 0.05 × (EOQ ÷ 2)
$16000 = 0.05 × EOQ ÷ 2
$32000 ÷ 0.05 = EOQ
EOQ = 640000 units
Now
Total demand = 640000 × 80
= 51200000
= 51.2 million
The annual demand for the K2 microprocessors is 51.2 million.
The total annual setup and carrying costs are $32,000, therefore, the value of each will be:
= $32000/2
= $16000.
The total number of orders will be:
= 16000/200 = 80 orders
The economic order quantity will be:
16000 = 0.05 × (EOQ/2)
EOQ = 32000/0.05
EOQ = 640000
The total demand will be:
= 640000 × 80 = 51.2 million
In conclusion, the annual demand of the K2 microprocessors is 51.2 million.
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Possible misstatements that may occur during the cash receipts process result from cash receipts being received, but not recorded (which could facilitate embezzlement). A control technique that is used to mitigate the risk of such misstatements is to segregate the duties of the accounts receivable department, general ledger accounting records, and cash receipts. The employee who completed each duty is required to sign his/her initials, and evidence of this has been provided for you in the Accounts_Receivable file. In each transaction, proper segregation of duties is accomplished when no two duties have been completed by the same person. Use IDEA and the information from Roger Company Accounts_Receivable file to determine in which transactions segregation of duties was not properly implemented.
Answer:
There should be strong internal controls implemented and segregation of duties in the finance department.
Explanation:
There is lack of internal controls present in the company which may lead to fraud or errors. The employees assigned to record the transaction are not recording all the cash receipts and are missing some of the cash receipts which can cause errors during reconciliation. The sub divisions of finance department must be segregated and there should be a supervisor who should be responsible to review all the work done by these departments.
What is true of a good at a market clearing price?
A)
There is no competitive market for the good.
B)
Quantity supplied is greater than quantity demanded.
C)
Producers must lower inventory in order to increase demand.
D)
The quantity of a good demanded is equal to the quantity supplied.
Answer:
D. The quantity of a good demanded is equal to the quantity supplied.
Explanation:
Deman will not change, but supply decrease. Demand will decrease.
At the beginning of 2020, Beerbo acquired a mine for $970,000. Of this amount, $100,000 was ascribed to the land value (the remaining portion was ascribed to the mine). Surveys conducted by geologists have indicated that approximately 12,000,000 units of ore appear to be in the mine. Beerbo incurred $170,000 of development costs associated with this mine prior to any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use (when all of the minerals have been removed) is $40,000. During 2020, 2,500,000 units of ore were extracted and 2,100,000 of these units were sold. What is the amount extracted in 2020
Answer:
$225,000
Explanation:
Depletion rate = [Mine cost - Land value + Obligation to prepare the land for an alternative + Development cost] / Total number of ore extracted
Depletion rate = [$970,000 - $100,000 + $40,000 + $170,000] / $12,000,000
Depletion rate = $1,080,000/$12,000,000
Depletion rate = $0.09
Amount extracted in 2020 = Unit of ore extracted in 2020 / Depletion rate
Amount extracted in 2020 = 2,500,000 units * $0.09
Amount extracted in 2020 = $225,000
Job 412 was one of the many jobs started and completed during the year. The job required $9,500 in direct materials and 35 hours of direct labor time at a total direct labor cost of $10,400. If the job contained four units and the company billed at 70% above the unit product cost on the job cost sheet, what price per unit would have been charged to the customer
Answer:
The appropriate answer is "$8,457,50".
Explanation:
The given values are:
Direct material cost,
= $9,500
Direct labor cost,
= $10,400
Units completed in job 412,
= 4
Now,
The total cost for completion of job 412 will be:
= [tex]Direct \ materials \ cost + Direct \ labor \ costs[/tex]
On substituting the values, we get
= [tex]9,500 + 10,400[/tex]
= [tex]19,900[/tex] ($)
Unit produced cost will be:
= [tex]\frac{19,900}{4}[/tex]
= [tex]4,975[/tex] ($)
70% of unit produced cost will be the profit margin, then
= [tex]70 \ percent\times 4,975[/tex]
= [tex]3,482.50[/tex] ($)
hence,
The price charged to the customer will be:
= [tex]Unit \ product \ cost + Profit \ margin[/tex]
On substituting the values, we get
= [tex]4,975 + 3,482.50[/tex]
= [tex]8,457,50[/tex] ($)
On December 31, Year 3, Alpha Company had an ending balance of $200,000 in its accounts receivable account and an unadjusted (current) balance in its allowance for doubtful accounts account of $300. Alpha estimates uncollectible accounts expense to be 1% of receivables. Based on this information, the amount of uncollectible accounts expense shown on the Year 3 income statement is:______.
a. $2.300.
b. $2200.
c. $1700.
d. $2.000.
Answer:
c. $1700.
Explanation:
The computation of the uncollectible account expense is shown below:
= Account receivable × estimated percentage - unadjusted balance
= $200,000 ×1% - $300
= $2,000 - $300
= $1,700
hence the uncollectible account expense is $1,700
Hence, the correct option is c.
The same would be relevant
A firm produces and sells two products, Plus and Max. The following information is available relating to setup costs (a part of factory overhead): Plus Max Units produced 200 16,000 Batch size (units) 10 400 Number of setups 20 40 Direct labor hours per unit 5 5 Total direct labor hours 1,000 80,000 Cost per setup$1,080 Total setup cost$64,800 Using number of setups as the activity base, the amount of setup cost allocated to each unit of product for Plus and Max, respectively is:Multiple Choice$21.60; $.54.$60.00; $60.00.$108.00; $2.70.$54.00; $27.00.$200.00; $16,000.00
Answer:
Apportioned set-up cost
Plus =$21,600
Max=$43,200
Explanation:
Activity-based costing is a form of absorption costing where overheads are charged to product using cost drivers.
Under this method, overheads are first analyzed and categorized by the activities responsible for them and then charged to product based on the amount of benefits enjoyed using cost drivers.
The cost driver in this scenario is the number of set-ups
Activity rate per driver is calculated as:
Activity overhead for the period / Total cost drivers for the period
So, we can apply this formula to the scenario above:
Set-up overhead= $64,800
Total set-ups for the period = 20 + 40 = 60
Overhead cost per set-up = $64,800/60=1,080
Set-up cost allocation:
Plus - 20 × 1,080=$21,600
Max- 40 × 1,080=$43,200
Apportioned set-up cost
Plus =$21,600
Max-=$43,200
Grouper Inc. has completed the purchase of new Dell computers. The fair value of the equipment is $675,803. The purchase agreement specifies an immediate down payment of $164,000 and semiannual payments of $63,101 beginning at the end of 6 months for 5 years. What is the interest rate, to the nearest percent, used in discounting this purchase transaction?
Answer:
The interest rate, to the nearest percent, used in discounting this purchase transaction 8%.
Explanation:
The interest rate can be calculated using the following RATE function in Excel:
Interest rate = RATE(nper,pmt,-pv,fv,type)*n .............(1)
Where;
nper = number of periods = number of years to maturity * number of semiannual in a year = 5 * 2 = 10
pmt = semiannual payments = $63,101 = 63101
pv = present value = fair value balance = fair value - immediate down payment = $675,803 - $164,000 = $511,803 = 511803
fv = future value = desired cash balance after last payment = 0
type = when payments are due (0 = end of period. 1 = beginning of period) = 0
n = number of compounding period per year = number of semiannual in a year = 2
Substituting the values into equation (1), we have:
Interest rate = RATE(10,63101,-511803,0,0)*2 .................. (2)
Inputting =RATE(10,63101,-511803,0,0)*2 into an excel sheet (Note: as done in the attached excel file), the Interest rate is obtained as 8.00%.
Therefore, the interest rate, to the nearest percent, used in discounting this purchase transaction 8%.
The standard cost of Product B manufactured by Pharrell Company includes 3.6 units of direct materials at $5.90 per unit. During June, 26,600 units of direct materials are purchased at a cost of $5.65 per unit, and 26,600 units of direct materials are used to produce 7,300 units of Product B. (a) Compute the total materials variance and the price and quantity variances.
Answer:
Results are below.
Explanation:
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (5.9 - 5.65)*26,600
Direct material price variance= $6,650 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (7,300*3.6 - 26,600)*5.9
Direct material quantity variance= $1,888 unfavorable