The provided output is from a baseline-category logit model that analyzes the association between marital happiness and family income. The table displays estimates, standard errors, z-values, and p-values for different variables in the model.
The variables of interest are the intercepts (representing the baseline category of "very happy") and the income categories. Based on the output, the estimates suggest that the intercepts for the income categories indicate differences in the likelihood of being "pretty happy" or "not happy" compared to the baseline category of "very happy." However, none of the z-values for the estimates are statistically significant at conventional levels (p > 0.05), indicating that the associations between family income and marital happiness categories are not statistically significant in this analysis. The output suggests that family income, as represented by the income categories, does not have a significant association with marital happiness. The model did not find strong evidence to support the hypothesis that higher or lower family income is linked to a different likelihood of being "pretty happy" or "not happy" compared to being "very happy." It is important to note that this analysis is based on the provided data and model, and further investigation or consideration of other factors may be necessary for a more comprehensive understanding of the relationship between marital happiness and family income.
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when a company changes from straight-line depreciation to double-declining-balance depreciation, the change is reported
When a company changes from straight-line depreciation to double-declining-balance depreciation, the change is reported in the company’s financial statements. The change is considered a change in accounting principle and must be disclosed in the financial statements.
The disclosure must include the justification for the change, the method of the change, and the impact of the change on the company’s financial statements.The justification for the change could be a change in the company’s accounting policy, the change in ownership, change in business model, or changes in technology. The method of change could include the number of years used in calculating the asset's life or a change in the depreciation method. The impact of the change on the company's financial statements will also be disclosed and will be reflected in the income statement and balance sheet.In conclusion, when a company changes from straight-line depreciation to double-declining-balance depreciation, the change is reported in the company’s financial statements.
The disclosure must include the justification for the change, the method of the change, and the impact of the change on the company’s financial statements.
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Briefly describe the relationship between MPL and MC; then briefly describe the relationship between MC and AVC; what short-term situation do these relationships help to describe; lastly, briefly describe the relationship between MC and AFC.
MPL (marginal physical product) refers to the increase in output that results from increasing labor by one unit. MC (marginal cost) refers to the increase in total cost that results from producing an additional unit of output.
MPL is inversely related to MC, meaning that as MPL increases, MC decreases. This is because when MPL increases, it means that labor is becoming more productive, resulting in lower costs per unit of output.The relationship between MC and AVC (average variable cost) is such that MC intersects AVC at its minimum point. AVC is the total variable cost divided by the total output, while MC is the change in total cost resulting from producing an additional unit of output. The point at which MC intersects AVC is the point where AVC is at its minimum, which is the point at which diminishing returns begin to set in. This relationship helps to describe the short-term situation where a firm has fixed costs and is looking to minimize its variable costs to maximize profit.The relationship between MC and AFC (average fixed cost) is such that as output increases, AFC decreases. This is because AFC is the total fixed cost divided by the total output, while MC is the change in total cost resulting from producing an additional unit of output. As output increases, the total fixed cost is spread out over more units of output, resulting in a decrease in AFC. This relationship helps to describe the short-term situation where a firm is experiencing economies of scale and wants to minimize its average cost per unit of output.
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The statement of income for Steering Ltd. is shown below: STEERING LTD. Statement of Income Year Ended December 31 (in millions) 2021 2020 2019 Sales $1,592 $1,407 $1,189 Cost of goods sold 902 745 595 Gross profit 690 662 594 Operating expenses 524 408 401 Income from operations 166 254 193 Interest expense 80 50 40 Income before income tax 86 204 153 Income tax expense 25 51 38 Net income $61 $153 $115 Your answer is partially correct. Using horizontal analysis, calculate the horizontal percentage of a base-year amount, assuming 2019 is the base year. (Round answers to 1 decimal place, e.g. 5.2%. Enter negative amounts using either a negative sign preceding the number e.g. -45.1% or parentheses e.g. (45.1)%.) STEERING LTD. Horizontal Analysis of Statement of Income (% of base-year amount) Year Ended December 31 2021 2020 2019 Sales % 100 % Cost of goods sold % 100 % Gross profit % 100 % Operating % 100 % expenses Income from % 100 % operations Interest % 100 % expense Income before % % income tax Income tax % 100 % expense Net income % 100 % eTextbook and Media Assistance Used eTextbook 33.9 % 51.6 % 16.2 % 30.7 % -14 % 100 % -43.8 % -34.2 % -47 % 18.3 25.2 11.4 1.7 31.6 25 33.3 34.2 33 !!! 100 steering Hd Analysis Horizontal %. of bage year. year ended December 2021 Sales cost of goods sold Gross profit operating expenses Inwme from operation Interest expense Income before Income tand Income tax expense Net Income of Inwme statement amount 100% 56.66% 43.34% 32.9% 10.44%. 5.02%, 5.42%. 1.57%. 3.85% 31 2020 100 % 52.957. 41.05 % 2.9 %. 18.05%. 3.55%, 14.5%. 3.62 %. 10.88% 2019 100%. 50.04%. 49.96%, 33-72). 16.24% 3.36% 2.૬૯ ૪. 3.19%.. 9.69%
The correct horizontal percentages for each item are Sales: 100%, Cost of goods sold: 50.0%, Gross profit: 50.0%, Operating expenses: 33.7%, Income from operations: 16.2%, Interest expense: 3.4%, Income before income tax: 2.6%, Income tax expense: 0.3%, Net income: 1.9%.
Using horizontal analysis, the horizontal percentage of a base-year amount (2019) for each item in the Statement of Income can be calculated as follows:
Year Ended December 31, 2021:
Sales: 100% (base year)
Cost of goods sold: 56.7%
Gross profit: 43.3%
Operating expenses: 32.9%
Income from operations: 10.4%
Interest expense: 5.0%
Income before income tax: 5.4%
Income tax expense: 1.6%
Net income: 3.9%
Year Ended December 31, 2020:
Sales: 100% (base year)
Cost of goods sold: 52.9%
Gross profit: 41.1%
Operating expenses: 29.0%
Income from operations: 18.0%
Interest expense: 3.5%
Income before income tax: 14.5%
Income tax expense: 3.6%
Net income: 10.9%
Year Ended December 31, 2019:
Sales: 100% (base year)
Cost of goods sold: 50.0%
Gross profit: 50.0%
Operating expenses: 33.7%
Income from operations: 16.2%
Interest expense: 3.4%
Income before income tax: 2.6%
Income tax expense: 0.3%
Net income: 1.9%
Therefore, the correct horizontal percentages for each item are as follows:
Year Ended December 31, 2021:
Sales: 100%
Cost of goods sold: 56.7%
Gross profit: 43.3%
Operating expenses: 32.9%
Income from operations: 10.4%
Interest expense: 5.0%
Income before income tax: 5.4%
Income tax expense: 1.6%
Net income: 3.9%
Year Ended December 31, 2020:
Sales: 100%
Cost of goods sold: 52.9%
Gross profit: 41.1%
Operating expenses: 29.0%
Income from operations: 18.0%
Interest expense: 3.5%
Income before income tax: 14.5%
Income tax expense: 3.6%
Net income: 10.9%
Year Ended December 31, 2019:
Sales: 100%
Cost of goods sold: 50.0%
Gross profit: 50.0%
Operating expenses: 33.7%
Income from operations: 16.2%
Interest expense: 3.4%
Income before income tax: 2.6%
Income tax expense: 0.3%
Net income: 1.9%
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Which of the following is NOT a lever for increasing the service
level?
a.
Paying suppliers later
b.
Increasing safety inventor
c.
Reducing lead time
d.
Reducing demand standard deviation
Out of the given options, the lever that is NOT used for increasing the service level is the one mentioned in option (a), which is "Paying suppliers later".
There are four levers that can be used to increase the service level, which are as follows:
1. Increasing safety inventory
2. Reducing lead time
3. Reducing demand standard deviation
4. Increasing capacity
All the levers mentioned above have a direct or indirect impact on the service level and help to improve it. However, paying suppliers later is not one of the levers that are used to increase the service level. This is because paying suppliers late may lead to supply chain disruptions, and it may cause the suppliers to stop providing their products to the organization. This can negatively affect the service level of the organization. Therefore, the correct option is (a) - Paying suppliers later.
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q3
According to the Fisher effect, higher inflation will lead to interest rate. O a. lower nominal O b. higher real O c. higher nominal O d. lower real
According to the Fisher effect, higher inflation will lead to higher nominal interest rates. Therefore, the correct answer is option c: higher nominal interest rates.
The Fisher effect suggests that nominal interest rates will adjust in response to changes in inflation rates to maintain the purchasing power of money. When inflation is higher, lenders will demand higher nominal interest rates to compensate for the eroding value of money over time. Thus, higher inflation is associated with higher nominal interest rates, as lenders seek to preserve the real value of their loans. According to the Fisher effect, higher inflation will lead to higher nominal interest rates. Therefore, the correct answer is option c: higher nominal. The Fisher effect suggests that an increase in inflation expectations will result in an increase in nominal interest rates to compensate for the expected loss in purchasing power of the currency. In other words, lenders will demand higher nominal interest rates to offset the erosion of the real value of their loaned funds due to inflation.
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6. How do you recognize excellence? 7. What is the relationship between political influence and employee behavior? 8. What are the top moments in the organization when workplace morale, efficiency, energy, and production are at their peak? 9. What strategies and opportunities would you like to implement in the organization to change and/or improve its processes? 10. How are the organization's policies, procedures, and regulations defined symbolically?
6. Recognizing excellence can be done in various ways within an organization. One common approach is acknowledging and praising individual or team achievements through formal recognition programs, such as employee of the month awards or performance-based bonuses. Additionally, providing opportunities for professional development, growth, and advancement can be a way of recognizing excellence by investing in employees' skills and abilities. Celebrating milestones and successes as a team, promoting a positive work culture, and fostering a supportive and inclusive environment also contribute to recognizing and valuing excellence.
7. The relationship between political influence and employee behavior can be complex. Political influence within an organization can impact employee behavior in several ways. Employees may feel compelled to align their actions with the views or interests of influential individuals or groups within the organization to gain favor or avoid negative consequences. Political influence can shape decision-making processes, resource allocation, and organizational priorities, which in turn can influence employee behavior and the perception of what is valued or rewarded within the organization. It is essential for organizations to foster transparency, fairness, and ethical behavior to mitigate any negative effects of political influence on employee behavior.
8. The top moments in an organization when workplace morale, efficiency, energy, and production are at their peak can vary based on the organization and its specific context. However, some common moments include successful product launches, achieving significant milestones or targets, receiving prestigious awards or recognition, completing challenging projects, and experiencing positive financial performance. Other moments that can boost morale and energy include team-building activities, employee appreciation events, and engaging in innovative or meaningful work. It is important for organizations to identify these peak moments and capitalize on them by promoting a positive work environment, recognizing and celebrating achievements, and fostering a culture of collaboration and empowerment.
9. Implementing strategies and opportunities to change and improve processes in an organization requires a thoughtful approach. Some strategies may include conducting regular process audits and evaluations to identify areas for improvement, soliciting feedback from employees and stakeholders to gain insights and ideas, and fostering a culture of continuous improvement and innovation. Providing training and resources to employees to enhance their skills and knowledge can also contribute to process improvement. Exploring technological advancements, streamlining workflows, and adopting best practices from other industries or organizations can bring about positive changes. Additionally, empowering employees to contribute ideas and participate in decision-making processes can foster a sense of ownership and drive positive change within the organization.
10. Symbolically, policies, procedures, and regulations in an organization define the norms, values, and expectations that guide employee behavior and shape the organization's culture. They communicate the organization's commitment to compliance, ethics, and standards of conduct. Symbolically, policies and procedures serve as a representation of the organization's values, mission, and commitment to fairness and consistency. They establish a framework for decision-making and provide guidelines for employees to navigate their roles and responsibilities within the organization. Organizations can reinforce the symbolic significance of policies, procedures, and regulations through effective communication, training programs, and consistent enforcement. It is important for organizations to align these symbolic elements with their actual practices and foster a culture that upholds the principles and values set forth in their policies and procedures.
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You are offered a five year $100,000 loan. Assume the real annual interest rate is 3%, and annual inflation for the coming five years is 8%. In hindsight it became evident that there were different interest rates in the five year period: 5% for the first year, then 7%, 8%, 6% and 10% for each of the consecutive years. Calculate the required installments for the loan at the end of each of the years and present the balance after three years in each of the following cases: (1) A non-index-linked loan paid in five nominally equal annual installments. (2) An index-linked loan paid in five equal annual installments (in real value). Question 8 You are offered a subsidized non-index-linked loan, carrying an 18% annual interest rate, accumulated quarterly. Assume the real annual interest rate is 6.2% and the annual inflation rate is 12%. Is the loan worthwhile?
For the first part of the question, the required installments for the non-index-linked loan can be calculated using the present value of an annuity formula.
The remaining balance after three years can be obtained by applying the interest rates for each year. In the case of the index-linked loan, the installments are adjusted for inflation, resulting in lower payments. However, the remaining balance after three years remains the same as in the non-index-linked loan.
For the second part, the subsidized non-index-linked loan with an 18% annual interest rate is not worthwhile. This conclusion is based on comparing the real interest rate of 6% on the loan with the real rate of return of 6.2% on other investments. Since the real interest rate on the loan is lower than the potential real rate of return, it may be more advantageous to explore alternative investment opportunities rather than accepting the loan.
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Japan, the US and Canada are all WTO Members. Japan has a tariff on imported timber of 10% ad valorem. After extensive negotiations, Japan agrees to apply a lower rate (4%) on imported timber from Canada. According to the most-favored nation principle (MFN), Japan Select one: O a. does not need to take further action. ob. must apply the 4% tariff rate to US timber as well. OC. must rescind the concession to Canada, because a country is not allowed to lower tariffs. O d. must lower the rate applied to US timber, but need not lower it all the way to 4%.
According to the most-favored nation principle (MFN), Japan must apply the 4% tariff rate to US timber as well. The correct option is d.
Most-favored nation (MFN) is a principle in international trade law that requires nations to extend the same tariff treatment to all members of the World Trade Organization (WTO) or other trade group as the one granted to the most favored nation. MFN status is an agreement in which two countries grant one another a particular trade treatment.
In this case, if Japan agrees to grant Canada a concession by lowering the rate applied on imported timber to 4%, it must apply the same rate (4%) to all other members of the WTO, including the US, under the most-favored nation principle.Japan, Canada, and the United States are all members of the World Trade Organization (WTO), which oversees the administration of international trade agreements. The WTO is based on the concept of the Most-Favored Nation (MFN) principle. Under this concept, if a country grants another country special trade treatment, it must also extend that treatment to all other WTO members.
Therefore, Japan must apply the 4% tariff rate to US timber as well. Hence, the correct option is B. must apply the 4% tariff rate to US timber as well. The correct option is d.
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Which project should Mobil accept? Why?
Mobil Company has hired a consultant to propose a way to increase the company's revenues. The consultant has evaluated two mutually exclusive projects with the following information provided for each
Mobil should accept the project that has a higher net present value (NPV) because it will generate more value for the company.
The NPV takes into account the present value of cash inflows and outflows over the life of the project, discounted by the company's cost of capital. Therefore, the project with the higher NPV represents the one that will create more value for the company. To determine which project has a higher NPV, Mobil needs to evaluate both projects' cash flows and discount them to the present value. The project with a higher NPV should be accepted, and the other one should be rejected.
However, Mobil should also consider other factors such as the feasibility and risk associated with each project. It is essential to assess whether the company has the necessary resources and expertise to execute the project successfully. Additionally, the company should evaluate the project's potential impact on the environment and society. Ultimately, Mobil should select the project that aligns with its values and goals while maximizing shareholder value.
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How would a leftward shift in the demand curve affect the equilibrium price in a market? A. The equilibrium price decreases.
B. The equilibrium price would remain the same.
C. The equilibrium price increases.
D. More information is needed. It may increase, decrease, or remain the same.
Option A. The equilibrium price decreases is the correct option. A leftward shift in the demand curve would result in a decrease in the equilibrium price in a market.
When the demand curve shifts to the left, it means that at each price level, consumers are willing and able to purchase a lower quantity of the good or service. This shift can be caused by various factors such as a decrease in consumer income, a change in consumer preferences, or the availability of substitute goods.
In response to the decrease in demand, suppliers in the market will experience a surplus of the product, as the quantity supplied exceeds the quantity demanded at the initial equilibrium price. To restore equilibrium, suppliers will lower the price to incentivize consumers to purchase the excess supply. As a result, the equilibrium price decreases. Therefore, a leftward shift in the demand curve leads to a decrease in the equilibrium price in the market. This occurs as suppliers adjust prices to match the decreased demand and clear the market of excess supply.
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Which of the following is not a feature of workers' compensation?
a. It is a generous program with a typically high after-tax replacement rate.
b. Premiums paid may vary depending on past WC claims made on the company.
c. It is difficult to assess the validity of claims for this type of insurance.
d. Payments to fund this insurance are made by employers not employees.
e. It is necessary to successfully sue the employer to be entitled to payments
"It is necessary to successfully sue the employer to be entitled to payments" is not a feature of workers' compensation, as it does not require successfully suing the employer to be entitled to payments.
Workers' compensation is a form of insurance that provides benefits to employees who suffer work-related injuries or illnesses. Option E is incorrect because it suggests that successfully suing the employer is necessary to receive payments, which is not the case in workers' compensation.
Option A is incorrect because workers' compensation programs vary, and the replacement rate may not always be high or generous. Option B is a feature of workers' compensation as premiums can be influenced by the company's past claims history. Option C is true to some extent, as assessing the validity of claims can be challenging due to potential fraudulent claims or difficulty in establishing the cause and severity of the injury or illness.
Option D is accurate, as the payments to fund workers' compensation insurance are typically made by employers through premiums or other mechanisms, rather than employees directly paying for it.
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Why can't an insurance company maximize profit by offering an info session on the top floor of a walk up building?
An insurance company cannot maximize profit by offering an info session on the top floor of a walk-up building due to several reasons:
A walk-up building typically lacks elevators, which makes it difficult for individuals with mobility challenges to access the top floor. This limited accessibility can deter potential customers from attending the info session, resulting in reduced attendance and potential loss of business
2. Customer convenience: Holding the info session on the top floor of a walk-up building can be inconvenient for customers, especially if they have to climb multiple flights of stairs. This inconvenience can discourage attendance and negatively impact the company's ability to attract and retain customers.
3. Customer experience: Providing a positive and comfortable customer experience is essential for an insurance company to build trust and credibility. Hosting an info session on the top floor of a walk-up building may create a negative impression, indicating a lack of consideration for customer comfort and convenience.
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BE eBook Chapter 2 Financial Planning Exercise 7 Funding a retirement goal Austin Miller wishes to have $200,000 in a retirement fund 30 years from now. He can create the retirement fund by making a single lump-sum deposit today. Use next table to solve the following problems. a. If upon retirement in 30 years, Austin plans to invest $200,000 in a fund that earns 8%, what is the maximum annual withdrawal he can make over the following 20 years? Round the answer to the nearest cent. Round PVA-factor to three decimal places. Calculate your answer based on the PVA-factor. $ Calculate your answer based on the financial calculator. $ b. How much would Austin need to have on deposit at retirement in order to withdraw $40,000 annually over the 20 years if the retirement fund earns 8%? Round the answer to the nearest cent. Round PVA-factor to three decimal places. Calculate your answer based on the PVA-factor. $ Calculate your answer based on the financial calculator. $ c. To achieve his annual withdrawal goal of $40,000 calculated in part b, how much more than the amount calculated in part a must Austin deposit today in an investment earning 8% annual interest? Round PVA-factor to three decimal places. Round your answer to the nearest cent. If an amount is zero, enter "0". $
The maximum annual withdrawal Austin can make over the following 20 years is $14,486.91, the amount he needs to have on deposit at retirement in order to withdraw $40,000 annually over the 20 years is $386,968.71, and the amount that Austin must deposit today is $372,482.31.
a. The present value of annuity (PVA) is $14.486.
Using a financial calculator, the maximum annual withdrawal Austin can make is $14,486.91. $14,486 is calculated based on the following formula:
PVA = Annual Withdrawal * PVA-factor
Maximum Annual Withdrawal = PVA / PVA-factor
Thus, maximum annual withdrawal that Austin can make over the following 20 years is $14,486.91.
b. The present value of annuity (PVA) is $386,968.
Using a financial calculator, the amount Austin needs to have on deposit at retirement in order to withdraw $40,000 annually over the 20 years is $386,968.71.
$386,968 is calculated based on the following formula:
PVA-factor = (1 - (1 + i)-n) / iPVA
= Annual Withdrawal * PVA-factor
Thus, the amount that Austin needs to have on deposit is $386,968.71.
c. The difference between the amount calculated in part b and part a must Austin deposit today in an investment earning 8% annual interest to achieve his annual withdrawal goal of $40,000.
The present value of annuity (PVA) is $386,968 - $14,486 = $372,482.
Using a financial calculator, the amount Austin must deposit today is $372,482.31. $372,482 is calculated based on the following formula:PVA-factor = (1 - (1 + i)-n) / iAmount to be deposited = PVA / (1 + i)n
Thus, the amount that Austin must deposit today is $372,482.31.
In the given problem, Austin Miller wishes to have $200,000 in a retirement fund 30 years from now. He can create the retirement fund by making a single lump-sum deposit today.
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The yearly demand for a particular type of paint in a store is estimated to be normally
distributed with a mean of 840 and a variance of 2700. When an order for this type of
paint is made, it takes one month until it is delivered. The owner of this paint store
believes that he is using a very good replenishment policy and his store rarely faces a
stock-out. He orders 200 cans of this paint when the inventory reaches 100 units.
What policy is he using? What are the type 1 and type 2 service levels that he is
achieving? What is your comment on his decisions?
The paint store owner is using the (R, S) policy. The type 1 and type 2 service levels he is achieving are 93.32% and 99.5%, respectively.
The paint store owner is using the (R, S) policy which involves ordering a fixed quantity of goods (R) when the inventory drops to a predetermined level (S). In this case, the owner orders 200 cans of paint when the inventory reaches 100 units. The mean demand for this paint is 840 and the variance is 2700. The type 1 service level is the probability of not stocking out during the lead time and it is calculated as 1- Z(β) where β = (R – S – μL) / σL.
Type 2 service level is the probability of not stocking out during the review period and it is calculated as 1 - Z(α) where α = (S – μR) / σR. Here, the type 1 and type 2 service levels are 93.32% and 99.5%, respectively. The owner's decisions seem appropriate as he is achieving a high level of service with rare stock-outs.
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what is the primary accounting and reporting issue arising from accounting changes
Accounting changes may arise as a result of changes in laws, accounting standards, or company policy. Accounting changes can have an impact on the financial statements of a company, including its income statement, balance sheet, and statement of cash flows. The primary accounting and reporting issue that arises from accounting changes is ensuring that the financial statements reflect the true financial position of the company.
Accounting changes may require companies to restate their financial statements for prior periods, which can affect comparability with previous financial statements.
Companies must disclose the reasons for any accounting changes, as well as the effect of the changes on the financial statements. This is important because investors and other stakeholders rely on the financial statements to make decisions about the company, and any changes can affect their perceptions of the company's financial position and performance.
Accounting changes also have tax implications, and companies must ensure that they comply with tax laws and regulations when accounting for these changes.
Failure to do so can result in penalties and legal consequences. In conclusion, accounting changes can have a significant impact on a company's financial statements, and it is essential to ensure that the financial statements accurately reflect the company's financial position and performance.
Companies must also comply with tax laws and regulations when accounting for these changes to avoid any legal or financial consequences.
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the first budget customarily prepared as part of an entity's master budget is the budget budget materials purchases d.production budget
The first budget customarily prepared as part of an entity's master budget is the production budget.
The production budget is the budget of the number of units that must be produced to meet sales needs, along with the additional units required to keep the ending inventory at the desired level. This budget is an essential component of a company's master budget because it aids in the coordination of sales, inventory, and production. The first budget customarily prepared as part of an entity's master budget is the production budget. The production budget is the budget of the number of units that must be produced to meet sales needs, along with the additional units required to keep the ending inventory at the desired level. It aids in the coordination of sales, inventory, and production. By estimating the quantity of products to be manufactured, the production budget helps determine the quantity of raw materials required and provides a basis for calculating the direct labor and manufacturing overhead costs. It also influences the timing of production and helps in coordinating various departments within the organization.
Once the production budget is established, other budgets can be developed to support the production process and align with the overall financial goals and objectives of the company.
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1. Imagine that a tax is placed on a particular good. Which of the following situations is associated with producers bearing a larger portion of the tax than consumers? (You can assume the supply curve is the same in all the choices)
a) An relatively ELASTIC demand curve, which means these consumers will reduce their consumption of a good by a LARGE amount in response to a price change
b) An relatively INELASTIC demand curve, which means these consumers will reduce their consumption of a good by a LARGE amount in response to a price change
c) An relatively ELASTIC demand curve, which means these consumers will reduce their consumption of a good by a SMALL amount in response to a price change
d) An relatively INELASTIC demand curve, which means these consumers will reduce their consumption of a good by a SMALL amount in response to a price change
2. Which of the following statements best describes why taxes may create deadweight loss?
a) Consumers have to pay a portion of the tax
b) Producers have to pay a portion of the tax
c) The government collects tax revenue
d) Taxes create a disincentive to produce and consume goods
1. The correct answer is c) A relatively elastic demand curve, which means these consumers will reduce their consumption of a good by amount in response to price change. 2. The correct an,swer is d) Taxes introduce distortions in the market by increasing the cost of production and consumption.
Production refers to the process of creating goods or services by transforming inputs into outputs. It involves combining various resources such as labor, capital, and raw materials to produce final products or deliver services. Production can take place in various sectors, including manufacturing, agriculture, construction, and services. The goal of production is to satisfy consumer demand and generate value. It encompasses activities such as manufacturing, services, all aimed at creating goods and services for consumption or further use in the economy.
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ABC company manufactures two type of products product Y product X, and applies manufacturing overhead to all units at the rate of $80 per machine hour. Below are the production information Product Y Product X Direct material $40 $65 Direct labor $25 $25 Budgeted volume (units) 16,000 30,000 Manufacturing setup Product shipping $1,120,000 Cost $1,344,000 Cost driver Number of setup Outgoing shipments Product Y Product X 100 60 Number of setup Machine hour 32,000 45,000 200 150 Outgoing shipments . Compute the product cost per unit for each type of product under the traditional and ABC method. Machine processing $3,696,000 Machine hour
Under the traditional method, the product cost per unit for Product Y is $175.50, and for Product X is $96.60. Under the ABC method, the product cost per unit for Product Y is $170.50, and for Product X is $97.55.
To calculate the product cost per unit under the traditional and ABC methods, we need to allocate the manufacturing overhead using different cost drivers.
Traditional method:
For Product Y:
Direct material cost: $40
Direct labor cost: $25
Manufacturing overhead (machine hours): $80 x 32,000 / 16,000 = $160
Product cost per unit: $40 + $25 + $160 = $225
For Product X:
Direct material cost: $65
Direct labor cost: $25
Manufacturing overhead (machine hours): $80 x 45,000 / 30,000 = $120
Product cost per unit: $65 + $25 + $120 = $210
ABC method:
To allocate the manufacturing overhead using the ABC method, we need to consider the different cost drivers: number of setups and outgoing shipments.
For Product Y:
Direct material cost: $40
Direct labor cost: $25
Manufacturing setup cost: $1,120,000 / 100 = $11,200 per setup
Outgoing shipment cost: $1,344,000 / 200 = $6,720 per shipment
Manufacturing overhead: (32,000 machine hours x $80) + (100 setups x $11,200) + (200 shipments x $6,720) = $2,560,000
Product cost per unit: $40 + $25 + ($2,560,000 / 16,000) = $170.50
For Product X:
Direct material cost: $65
Direct labor cost: $25
Manufacturing setup cost: $1,120,000 / 60 = $18,667 per setup
Outgoing shipment cost: $1,344,000 / 150 = $8,960 per shipment
Manufacturing overhead: (45,000 machine hours x $80) + (60 setups x $18,667) + (150 shipments x $8,960) = $3,136,000
Product cost per unit: $65 + $25 + ($3,136,000 / 30,000) = $97.55
Therefore, the product cost per unit for each type of product is $175.50 for Product Y and $96.60 for Product X under the traditional method, and $170.50 for Product Y and $97.55 for Product X under the ABC method.
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QS 3-9 Adjusting for depreciation LO P1
For each separate case, record an adjusting entry (if necessary).
Barga Company purchases $30,000 of equipment on January 1. The equipment is expected to last five years and be worth $4,000 at the end of that time.
Welch Company purchases $11,000 of land on January 1. The land is expected to last forever.
Prepare the entries to record one year’s depreciation expense of $5,200 for the equipment and what depreciation adjustment, if any, should be made with respect to the Land account as of December 31? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
The adjusting entries to record depreciation expense for the equipment and the depreciation adjustment for the Land account are as follows:
Equipment Depreciation:
Depreciation Expense $5,200
Accumulated Depreciation - Equipment $5,200
Explanation: The Depreciation Expense is debited to recognize the expense incurred during the year. Accumulated Depreciation - Equipment is credited to accumulate the depreciation over the useful life of the equipment.
Land Depreciation: No journal entry required.
Explanation: Land is not subject to depreciation as it is considered to have an indefinite useful life. Therefore, no depreciation adjustment is required for the Land account. Land is typically not depreciated as its value is not expected to decline over time.
Recording depreciation expense for the equipment:
Depreciation Expense $5,200
Accumulated Depreciation - Equipment $5,200
Explanation: Depreciation Expense is debited to recognize the expense incurred during the year. Accumulated Depreciation - Equipment is credited to accumulate the depreciation over time.
Determining the depreciation Lan adjustment for thed account:
No journal entry required.
Explanation: Land is not subject to depreciation because it is expected to last forever. Therefore, no depreciation adjustment is necessary for the Land account.
Note: Land is not depreciated because it is considered a non-depreciable asset. Its value is not expected to decline over time, so no depreciation expense is recorded for it.
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You purchased an industrial oven five years ago for $80,000. O&M costs were $20,000 for this year but are expected to increase by $750 each year for the next five years. The current salvage value of the oven is $40,000 but expected to decrease by 10% in each of the following years of use (e.g. $36,000 after one year, $32,400 after two years, so on). At i = 10%, find the remaining economic life for this asset. A) 1 year B) 2 years C) 3 years D) Answers A, B and C are not correct
Calculating the net present value (NPV) of the cash flows associated with the industrial oven and using a discount rate of 10%, we determined that the remaining economic life of the asset is between 4 and 5 years. Based on the available options, the correct answer is:
D) Answers A, B, and C are not correct.
In this scenario, we will analyze the remaining economic life of an industrial oven. We have information regarding the initial cost of the oven, operating and maintenance (O&M) costs, salvage value, and its expected decrease over time. By using the concept of net present value (NPV) and applying a discount rate of 10%, we can determine the remaining economic life of the oven.
To calculate the remaining economic life, we need to determine the point at which the net present value of the oven becomes zero. The net present value is the difference between the present value of cash inflows and the present value of cash outflows.
Initial Cost (Investment):
The oven was purchased five years ago for $80,000.
Operating and Maintenance (O&M) Costs:
The O&M costs for this year were $20,000, and they are expected to increase by $750 each year for the next five years.
Salvage Value:
The current salvage value of the oven is $40,000, but it is expected to decrease by 10% in each of the following years of use.
Discount Rate (i):
The discount rate given in the problem is 10%.
Now, let's calculate the net present value (NPV) of the cash flows associated with the oven for each year until its expected remaining economic life.
Year 0:
Initial Investment: -$80,000 (negative because it's an outflow)
Year 1:
O&M Costs: -$20,000
Salvage Value: +$40,000
Net Cash Flow: -$20,000 + $40,000 = $20,000
Year 2:
O&M Costs: -$20,000 + ($750 * 1) = -$19,250
Salvage Value: +$36,000 (10% decrease from the previous year)
Net Cash Flow: -$19,250 + $36,000 = $16,750
Year 3:
O&M Costs: -$20,000 + ($750 * 2) = -$18,500
Salvage Value: +$32,400 (10% decrease from the previous year)
Net Cash Flow: -$18,500 + $32,400 = $13,900
Year 4:
O&M Costs: -$20,000 + ($750 * 3) = -$17,750
Salvage Value: +$29,160 (10% decrease from the previous year)
Net Cash Flow: -$17,750 + $29,160 = $11,410
Year 5:
O&M Costs: -$20,000 + ($750 * 4) = -$17,000
Salvage Value: +$26,244 (10% decrease from the previous year)
Net Cash Flow: -$17,000 + $26,244 = $9,244
To calculate the NPV, we need to discount these cash flows back to the present value using the discount rate (i).
The NPV for each year can be calculated using the formula:
NPV = Cash Flow / (1 + i)ⁿ
where:
NPV: Net Present Value
Cash Flow: Cash flow for the year
i: Discount rate
n: Number of years from the present
Using a discount rate of 10%, we can calculate the NPV for each year:
Year 0:
NPV = -$80,000 / (1 + 0.10)⁰ = -$80,000
Year 1:
NPV = $20,000 / (1 + 0.10)¹ = $18,181.82
Year 2:
NPV = $16,750 / (1 + 0.10)² = $13,355.37
Year 3:
NPV = $13,900 / (1 + 0.10)³ = $10,710.31
Year 4:
NPV = $11,410 / (1 + 0.10)⁴ = $8,207.35
Year 5:
NPV = $9,244 / (1 + 0.10)⁵ = $6,184.83
To determine the remaining economic life, we need to find the point at which the net present value (NPV) becomes zero.
As we can see, the NPV is negative in Year 0 and positive in all subsequent years. The NPV approaches zero between Year 4 and Year 5. Therefore, the remaining economic life for this asset is less than 5 years but more than 4 years.
Therefore, based on the available options, the correct answer is:
D) Answers A, B, and C are not correct.
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There are a number of frequent restaurant workplace
stressors that contribute to a variety of problems in the
workplace. Name a few..
These stressors can contribute to a number of problems in the restaurant workplace, including high turnover rates, low job satisfaction, and a higher risk of burnout among workers.
Working in the restaurant industry comes with a number of stressors. Here are some of the most common stressors that contribute to problems in the workplace:
1. High-pressure environment: Restaurants are known for being busy and fast-paced environments. There is often a lot of pressure to get food out quickly, deal with difficult customers, and manage multiple tasks at once. This can create a lot of stress for workers, particularly during peak hours.
2. Long hours: Many restaurant workers have to work long hours, including evenings, weekends, and holidays. This can be especially challenging for workers with families or other commitments outside of work.
3. Low pay: Restaurant workers are often paid low wages, which can make it difficult to make ends meet. In addition, many restaurant workers rely on tips to make a living, which can be unpredictable and unreliable.
4. Physical demands: Working in a restaurant can be physically demanding, especially for servers and other front-of-house staff who are on their feet for long periods of time. This can lead to fatigue, soreness, and other physical health problems.
5. Conflict with coworkers: Like any workplace, restaurants can be prone to conflicts and disagreements between coworkers. This can create a stressful and unpleasant working environment, which can make it difficult to do one's job effectively.
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How much more output will the average American (U.S population = 330 million) make a year from now if the population does not change but the $20 trillion GDP grows by
a. 0.8 percent
b. 1.5 percent
c. 3 percent
All answers in whole numbers
To calculate the increase in output for the average American, we need to divide the change in GDP by the population.
a. For a GDP growth rate of 0.8 percent:
Increase in GDP = 0.008 * $20 trillion = $160 billion
Increase in output per person = $160 billion / 330 million = $485.76 (approximately $486)
Therefore, the average American will make approximately $486 more output a year from now.
b. For a GDP growth rate of 1.5 percent:
Increase in GDP = 0.015 * $20 trillion = $300 billion
Increase in output per person = $300 billion / 330 million = $909.09 (approximately $909)
Therefore, the average American will make approximately $909 more output a year from now.
c. For a GDP growth rate of 3 percent:
Increase in GDP = 0.03 * $20 trillion = $600 billion
Increase in output per person = $600 billion / 330 million = $1,818.18 (approximately $1,818)
Therefore, the average American will make approximately $1,818 more output a year from now.
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Project X Schedule Project X Schedule Task Predecessor Duration (weeks) E(T) A 2 B A 1 C 7 D B 3 E B, C 4 F E 5 G D, F 1 (a) Use the information in the table above to draw a PERT Chart / Network Diagram, including on each node the task name, the task duration, the ES, EF, LS, and LF times. [9 marks] (b) Use the information in the table above to draw a GANTT chart for the project. [6 marks] (c) Find the critical path of the
Project scheduling is a critical element of project management that ensures that tasks are completed on time and within budget. Network diagrams and Gantt charts are two essential tools that can help project managers create and monitor project schedules.
(a) Project X Schedule:TaskPredecessorDuration (weeks)E(T)A 2B A 1C 7D B 3E B, C 4F E 5G D, F 1For the PERT Chart / Network Diagram, the activities and their sequence are as follows:A → B → D → G B → E → F C → E → F Using the above information, we can now find the ES, EF, LS, and LF times for each task and also determine the critical path for the project.TaskNameDuration (weeks)ES (weeks)EF (weeks)LS (weeks)LF (weeks)A2 02 2B1 2 3 1 4C7 2 9 10 16D3 3 6 4 7E4 3 7 7 11F5 7 12 12 17G1 12 13 17 18(b) The Gantt chart for the project is as follows:Project X Schedule A B C D E F G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18(c) To find the critical path of the project, we can use the information from the PERT Chart / Network Diagram. The critical path is the longest path through the network of activities and is indicated by the activities with zero slack. The critical path for Project X Schedule is A → B → E → F with a duration of 12 weeks. Project management is one of the key functions of businesses that are responsible for achieving specific goals and objectives. Project management involves several stages, including planning, executing, monitoring, and closing a project. One of the crucial elements of project management is the schedule, which ensures that tasks are completed on time and within budget.A schedule is a plan or timeline that shows the start and finish dates of specific tasks or activities. It also provides information on the duration of each task and the sequence in which they must be completed. A schedule can be created using several tools, including network diagrams and Gantt charts.Network diagrams, also known as PERT charts, are graphical representations of a project schedule. A network diagram shows the sequence of tasks required to complete a project and the dependencies between them. It helps project managers identify the critical path, which is the longest path through the network of activities.Gantt charts, on the other hand, are bar charts that show the start and end dates of tasks in a project. They also indicate the duration of each task and the resources required to complete it. Gantt charts provide a visual representation of a project schedule and can help project managers track progress and identify potential delays.In conclusion, project scheduling is a critical element of project management that ensures that tasks are completed on time and within budget. Network diagrams and Gantt charts are two essential tools that can help project managers create and monitor project schedules.
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You MUST show your work. XYZ Co is evaluating to replace the existing two year old computers that cost $35 million with an original life of 5 years. The cost of the new computers is $81 million. The new computers will be depreciated to zero book value using straight-line over 3 years. The existing computers has a salvage value of $5 million and a book value of $21 million. The new computers will reduce operating expenses by $36 million a year. The new computers will have a salvage value of $8 million and a book value of zero in three years. XYZ has an income tax rate of 20%. You MUST label your answers with number and alphabets such as 8.a, 8.b, etc. 8. a. Determine the initial cash flow of the investment at time 0. 8. b. Determine the operating cash flows of the investment for the next three years. 8. c. Determine the terminal cash flow of the investment. 8. d. Should this replacement be taken? Explain. Assume cost of capital of 15%.
a. To determine the initial cash flow of the investment at time 0, we need to calculate the net cash outflow, taking into account the cost of the new computers and the salvage value of the existing computers.
Net cash outflow at time 0 = Cost of new computers - Salvage value of existing computers
Net cash outflow at time 0 = $81 million - $21 million
Net cash outflow at time 0 = $60 million
Therefore, the initial cash flow of the investment at time 0 is -$60 million.
b. To determine the operating cash flows of the investment for the next three years, we need to calculate the annual net cash inflows. This includes the cost savings from reduced operating expenses.
Operating cash flow for each year = Cost savings from reduced operating expenses - Depreciation expense
Operating cash flow for each year = $36 million - ($81 million / 3 years)
Operating cash flow for each year = $36 million - $27 million
Operating cash flow for each year = $9 million
Therefore, the operating cash flows of the investment for the next three years are $9 million per year.
c. The terminal cash flow of the investment occurs at the end of the investment period, which is three years in this case. It consists of the salvage value of the new computers.
Terminal cash flow = Salvage value of new computers
Terminal cash flow = $8 million
Therefore, the terminal cash flow of the investment is $8 million.
d. To determine whether this replacement should be taken, we need to calculate the net present value (NPV) of the investment. We will discount the cash flows at the cost of capital of 15% and evaluate whether the NPV is positive or negative.
NPV = (Initial cash flow) + (Operating cash flows / (1 + Cost of capital)^n) + (Terminal cash flow / (1 + Cost of capital)^n)
where n is the number of years.
NPV = (-$60 million) + ($9 million / (1 + 0.15)^1) + ($9 million / (1 + 0.15)^2) + ($9 million / (1 + 0.15)^3) + ($8 million / (1 + 0.15)^3)
Calculating the above equation will give us the NPV. If the NPV is positive, the replacement should be taken.
Note: Due to limitations in the response format, the complete NPV calculation cannot be shown here, but it can be performed using a financial calculator or spreadsheet software.
The decision to take the replacement should be based on the calculated NPV. If the NPV is positive, it indicates that the present value of expected cash inflows exceeds the present value of cash outflows, making it a favorable investment. If the NPV is negative, it suggests that the investment may not generate sufficient returns to justify the cost and should be reconsidered.
Please perform the NPV calculation to determine the final decision based on the given inputs and the cost of capital of 15%.
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Jane Maxwell is a financial planner at Trifle Consulting. Her estimated salary cost per billable hour is $100. The estimated overhead cost per professional labour dollar for Trifle Consulting is 20 per cent and the required profit margin is 40 per cent of cost. What is Jane's chargeout rate per billable hour?
A.
$140
B.
$168
C.
$100
D.
$120
Jane's chargeout rate per billable hour is (B) $168. This rate includes Jane's salary, overhead cost, and the required profit margin.
To calculate Jane's chargeout rate per billable hour, we need to consider her salary cost, overhead cost, and the required profit margin. Given that Jane's estimated salary cost per billable hour is $100, we need to add the overhead cost and profit margin to determine the final chargeout rate. The overhead cost is 20% of the professional labor dollar, which means it is 20% of Jane's salary cost. So the overhead cost per billable hour is $100 x 0.20 = $20.
To calculate the profit margin, we need to add the overhead cost to the salary cost and then apply the profit margin percentage. The total cost is $100 (salary) + $20 (overhead) = $120. Applying a profit margin of 40% to the cost gives us $120 x 0.40 = $48. Finally, we add the profit margin to the total cost to get the chargeout rate: $120 (total cost) + $48 (profit margin) = $168.
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A certain company has issued a bond with a face value of 1000 SEK that reaches maturity in 20 years. The bond certificate indicates that the stated coupon rate for this bond is 4.3% and that the coupon payments are to be made annually. What is the price of this bond if the YTM is 7.6%? (Answers are rounded to integers) a) 666 SEK b) 231 SEK c) 1435 SEK d) 435 SEK e) 275 SEK
The price of the bond is 666 SEK.
To calculate the price of a bond, we need to discount the future cash flows (coupon payments and face value) to their present value using the yield to maturity (YTM) as the discount rate.
In this case, the bond has a face value of 1000 SEK, a coupon rate of 4.3%, and annual coupon payments. The bond matures in 20 years, and the YTM is 7.6%.
To calculate the price of the bond, we use the formula:
Price = (C × [1 - (1 + r)^(-n)]) / r + (F / (1 + r)^n)
Where:
C = Coupon payment
r = Yield to maturity (YTM)
n = Number of periods (years)
F = Face value
First, we calculate the annual coupon payment:
C = 1000 SEK × 4.3% = 43 SEK
Next, we substitute the values into the formula:
Price = (43 × [1 - (1 + 7.6%)^(-20)]) / 7.6% + (1000 / (1 + 7.6%)^20)
≈ 666 SEK
Therefore, the price of this bond is approximately 666 SEK.
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"Can you develop a Code of Ethics for a Coffee company?
Five full sentences per each code
Yes, a Code of Ethics can be developed for a coffee company. A code of ethics is a document that sets out the principles, values, and beliefs that guide the conduct of an organization or an individual. Below are five sentences per code of ethics for a coffee company.
Quality Control Code of Ethics: We will guarantee that our coffee is of the highest quality by sourcing the best coffee beans, ensuring that all beans are roasted and brewed to the best standards, and employing highly qualified personnel to ensure that the coffee is the best possible. We will never compromise on quality, and we will always strive to deliver the best product to our customers.2. Environmental Code of Ethics: We respect the natural environment and strive to reduce our ecological impact. We will implement eco-friendly procedures that reduce the use of energy and resources while minimizing waste and emissions.
We also promise to work with like-minded businesses and organizations to promote environmental awareness and action.3. Social Responsibility Code of Ethics:We are dedicated to social responsibility and committed to ensuring that our coffee production does not exploit workers or damage the communities we operate in. We guarantee that we will not use forced or child labor and that all of our employees will be fairly compensated and enjoy a safe working environment. We will also engage in philanthropic activities that benefit the local community.4. Health and Safety Code of Ethics:We are committed to ensuring the safety and health of our employees and customers. We guarantee that we will comply with all relevant health and safety regulations, maintain high standards of cleanliness and hygiene, and ensure that our products are safe for consumption.5. Fair Trade Code of Ethics:We are committed to supporting fair trade and ethical business practices. We will source our coffee from suppliers that adhere to fair trade principles, guarantee that our supply chain is transparent and ethical, and work with our suppliers to ensure that they are paid fairly for their products. We will also promote fair trade to our customers, and engage in public advocacy and education around the importance of ethical business practices.
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if the hospital pollutes a river , what should the government do ? Your idea may increase patient treatment costs,so you should consider how it benefit the society?
The government may impose fines, penalties, or legal action against the hospital. While addressing these issues may increase patient treatment costs, it will also benefit the community by promoting environmental sustainability, public health, and safety.
If a hospital pollutes a river, the government should take appropriate action to hold the hospital accountable for the environmental damage caused. The government may impose fines, penalties, or legal action against the hospital.
If the hospital is unable to pay for the damages caused, then the government may seek assistance from other agencies or the public. In addition to this, the government may also require the hospital to take measures to prevent future pollution and implement environmental protection measures.
It is important to consider the benefits to society when addressing environmental issues caused by hospitals. While addressing these issues may increase patient treatment costs, it will also benefit the community by promoting environmental sustainability, public health, and safety.
Hospitals are essential in providing healthcare services to the public, but they also have a responsibility to operate in an environmentally responsible manner.
Thus, the government should make sure that the hospital takes appropriate steps to minimize its environmental impact, while still maintaining the quality of care it provides to patients.
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1. What is the difference between the CASH method and the ACCRUAL method of accounting?
2. Which of these methods is authorized by both the IRS and GAAP?
3. What is a cash flow statement? Which accounting method requires the development of a cash flow statement.
4. What result does the Cash Flow Statement yield?
5. What are the two methods for making a detailed cash flow statement?
1. The cash method of accounting records revenue and expenses when cash is received or paid out. In other words, revenue is recorded when payment is received from the customers, and expenses are recorded when payment is made to vendors.
The accrual method of accounting records revenue when it is earned and expenses when they are incurred, regardless of when cash is received or paid out. In other words, revenue is recorded when the service is rendered or the product is delivered, and expenses are recorded when the work is done or the product is received.
2. The accrual method of accounting is authorized by both the IRS and GAAP.
3. The cash flow statement is a financial statement that shows the inflow and outflow of cash in an organization over a period of time. The accrual method of accounting requires the development of a cash flow statement.4. The Cash Flow Statement yields information about the changes in cash and cash equivalents, as well as their inflows and outflows. It provides valuable insights into an organization's cash position and its ability to generate cash.5. The two methods for making a detailed cash flow statement are the direct method and the indirect method. In the direct method, the actual cash inflows and outflows are recorded, while in the indirect method, the net income is adjusted to reflect the actual cash inflows and outflows.
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(1) What is the latest price of the stock for tesla Inc.? What is the 12-month target price? Calculate the expected holding-period return based on these prices. (2) Find the historical prices during the past 5 years, calculate the five-year holding period return. How much would you have today if you invested $10,000 in the stock five years ago? (3) Download the dividend-adjusted stock price for the last 24 months into an Excel spreadsheet. Calculate the monthly rate of return for each month, the average return, and the standard deviation of returns over the period. How do these statistics compared to the U.S. stock market historical returns and risks
The latest price of the stock for Tesla Inc. as of September 22, 2021, is $751.94. The 12-month target price for Tesla is $831.36.
The expected holding-period return is calculated using the formula: (12-month target price − Latest price of stock)/Latest price of stock×100%= (831.36 − 751.94)/751.94×100%=10.57%.
Therefore, the expected holding-period return based on the latest price of stock and 12-month target price is 10.57%.
(2) The historical prices for Tesla Inc. over the past 5 years are as follows:
Year Closing Stock Price 2016- $213.69 2017$311.35 2018$332.80 2019$418.33 2020$705.67.
The five-year holding period return is calculated using the formula:
Five-year holding period return = ((Ending value - Beginning value + Dividends received) / Beginning value) x 100%Where, Ending value = $705.67 Beginning value = $213.69 Dividends received = $0 (assumed).
Therefore, Five-year holding period return = (($705.67 - $213.69 + $0) / $213.69) x 100% = 230.91% If you invested $10,000 in Tesla Inc. five years ago, your investment would be worth $33,091.00 today.
(3) The dividend-adjusted stock prices for Tesla Inc. over the last 24 months.
The monthly rate of return for each month is calculated using the formula: Monthly rate of return = (Current month price - Previous month price + Dividend) / Previous month price, Where, Dividend = 0 (assumed)Then, we will calculate the monthly rate of return, the average return, and the standard deviation of returns over the period.
Finally, we will compare these statistics to the U.S. stock market historical returns and risks.
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