Answer:
0.333 Times
Explanation:
The computation of debt-to-equity ratio is shown below:-
But before that we need to determine the following items
ROA = Net income ÷ Total Assets
9.00% = Net income ÷ $90,000,000
Net income =9.00% × $90,000,000
= $8,100,000
Profit margin = Net income ÷ Net Sales
8% = $8,100,000 ÷ Net sales
Net sales = $101,250,000
ROE = Net income ÷ Shareholders equity
12% = $8,100,000 ÷ Shareholders equity
Shareholders equity = $67,500,000
Total Liabilities = Total Assets - Equity
= $90,000,000 - $67,500,000
= $22,500,000
Debt - Equity ratio = Total Liabilities ÷ Equity
= $22,500,000 ÷ $67,500,000
= 0.333 Times
Headlands Industries reported net cash provided by operating activities of $436,720, net cash used by investing activities of $265,000, and net cash provided by financing activities of $74,200. In addition, cash spent for capital assets during the period was $212,000. No dividends were paid.
Required:
Calculate free cash flow.
Answer:
Free cash flow is $224,720.00
Explanation:
The free cash flow in this instance is the cash provided by operating activities less net investment in working capital as well as investment in capital expenditure.
Free cash flow=net cash provided by operating activities-cash paid as dividends-increase in Capital expenditure
net cash provided by operating activities is $436,720
cash paid as dividends is $0
increase in Capital expenditure is $212,000
free cash flow=$436,720-$0-$212,000=$224,720.00
Symphon Times Inc., a Swiss-based premium watch brand, has recently started selling its watches through company-owned retail outlets in major cities of the emerging nations. Which of the following types of diversification strategies is the firm pursuing?
a) geographic diversification strategyb) product-market diversification strategyc) product diversification strategyd) process diversification strategy
Answer:
a) geographic diversification strategy.
Explanation:
In this scenario, Symphon Times Inc., a Swiss-based premium watch brand, has recently started selling its watches through company-owned retail outlets in major cities of the emerging nations. The type of diversification strategies the firm is pursuing is a geographic diversification strategy.
Geographical diversification strategy can be defined as the process of diversifying your investments across various geographical regions (market) so as to improve profits or returns on investment and primarily to mitigate the overall business risk.
Hence, using the geographic diversification strategy Symphon Times Inc., is spreading its risk across various geographical regions or emerging nations by allocation of its resources in order to prevent them from being vulnerable to external conditions and to improve their performance and competitiveness. Thus, a geographic diversification strategy is simply a business management strategy that entails "not putting all your eggs in a basket" rather you should have them spread across in order to prevent or mitigate the overall risks.
Additionally, in order to preserve wealth and to reduce portfolio risks it is advisable that business owners such as Symphon Times Inc. engage in geographic diversification strategy.
Carter Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,100,000; sales of $4,525,000; cost of goods sold of $2,550,000; and operating expenses of $1,372,000. Assume a target income of 10% of average invested assets. Compute residual income for the division:
Answer:
$193,000
Explanation:
Carter Company
Sales 4,525,000
Cost of goods sold -2,550,000
1,975,000
Operating expenses -1,372,000
Net Income 603,000
Average invested assets 4,100,000
Target income 10% 410,000 410,000
Residual income $193,000
A corporation ran an ad which showed environmental experts praising its social initiatives. The ad encourage readers to visit its website to learn how they could help save the environment. Which copy style was used to describe the company's efforts to help preserve the environment
Answer:
institutional copy.
Explanation:
In the scenario described above, the institutional copy style was used, which can be defined as a type of advertisement whose objective is not to sell a product or service, but rather to promote the selling company through its policies, philosophies and objectives, with the objective of strengthening and creating its reputation so that customers are aware of their values and reputation, generating recognition and prestige.
This is what the company analyzed in the above question did by running an ad that shows environmental experts praising its social practices and encouraging readers to access its website and learn about its positive environmental practices
" Some companies have developed creative ways to build communities that match customer lifestyles. This type of marketing has led to higher profits. For the customers, this is part of _________________. Group of answer choices"
Answer:
Relationship marketing
Explanation:
Marketing is a concept of presenting products to customer. There are various ways to market a product. Relationship marketing is a concept in which customer is the main focus, his needs, demands and customization requirements are kept in mind before referring any product to them. Many companies have formed a strategy in which product is designed according to customer lifestyle maintenance requirements. This will lead to higher profit as switching cost for customer is high and also their required product will not be available easily in the market.
Which were the two major challenges faced by U.S. multinational corporations at the close of the 1960s?
a. The creation of the Soviet Union and the higher tariffs on imports.
b. Growing jingoistic nationalism and a negative population growth rate in major international markets.
c. Resistance to direct investment and increasing competition in export markets
d. Increasing Chinese domination in the manufacturing sector and the falling dollar in global markets
e.The decreased demand for U.S. goods in the global market and the growing influence of consumer rights advocacy in the home market
Answer:
The correct answer is the option C: Resistance to direct investment and increasing competition in export markets.
Explanation:
To begin with, the decade of 1960's was completely full of changes in the american life due to the big events that happened during that time. Moreover, the two most important challenges that the american economy had to face up were the fact that the direct investment was hardly constat and did not increase and the current fight in order to increase the competition in exports markets and all that because of the high expenditures that the government did due to the Vietnam War and the Space Race. Also, while the government spending increased the exports were reduce in the market because of the increase in the China's techonolgy exports.
Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 50 billion cases of cola were sold every year at a price of $5 per case. After the tax, 44 billion cases of cola are sold every year; consumers pay $6 per case, and producers receive $2 per case (after paying the tax).
The amount of the tax on a case of cola is $ per case. Of this amount, the burden that falls on consumers is $ per case, and the burden that falls on producers is $_________ per case, and the burden that falls on producers is $ _____ per case.
The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.
a. True
b. False
Answer:
U.S. Tax Burden on Cola:
The amount of the tax on a case of cola is $4 per case. Of this amount, the burden that falls on consumers is $1 per case, and the burden that falls on producers is ___$3______ per case.
The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.
a. True
b. False
Explanation:
The tax burden on consumers, which is represented by the difference in the price of cola from $5 to $6 per unit is $1 ($6 - $5). However, the cash received by producers reduced by $3 from $5 to $2. This shows that the total tax burden on both consumers and producers is $4 ($1 + $3).
This represents a total tax burden of $4 or about 67% based on the new selling price of cola or 80% based on the old selling price of cola.
"The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers alone. This because the price of cola would have increased to $9 per unit. Since the demand for cola in this instance is elastic, this change in price would have caused a more than 80% change in the quantity demanded.
The amount of the tax on a case of cola is $4 per case. Of this amount, the tax burden that falls on consumers is $1 per case, and the burden that falls on producers is $3 per case.
What do you mean by tax burden?Tax Burden is a measure of the tax liability imposed by the government on the citizens of a country.
The tax burden on consumers, represented by the price difference of cola from $ 5 to $ 6 per unit is $ 1 ($ 6 - $ 5).
However, producers' revenue has been reduced by $3 from $ 5 to $2.
This indicates that the total tax burden on both buyers and producers is $4 ($ 1 + $ 3).
This represents a total tax burden of $4 or approximately 67% based on the new sales value of cola or 80% based on the old sales value of cola.
Therefore, The statement is true; "The impact of taxes on the sale price would be huge if the tax was levied on consumers alone. This is because the price of cola would increase to $ 9 per unit.
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In a department, 35 comma 000 units are completed and transferred out and 12 comma 400 remain in ending WIP at 85% complete. If an equivalent unit costs $ 10.00 for direct materials, what is the value of materials transferred out?
Answer:
$350,000
Explanation:
The computation of the value of material transferred out is shown below:
= Completed and transferred units × equivalent cost for direct material per unit
= 35,000 units × $10
= $350,000
Therefore by multiplying the completed & transferred units with the equivalent cost for direct material per unit we can get the value of material transferred out
A company manufactures two products. For $1.00 worth of product A, the company spends $0.40 on materials, $0.20 on labor, and $0.10 on overhead. For $1.00 worth of product B, the company spends $0.50 on materials, $0.20 on labor, and $0.15 on overhead.
Let
a = (0.40, 0.20, 0.10) b = (0.50, 0.20, 0.15)
Then a and b represent the "costs per dollar of income" for the two products. Suppose the company manufactures x dollars worth of product A and y dollars worth of product B and that its total costs for materials are $260, its total costs for labor are $120, and its total costs for overhead are $70.
Determine x and y, the dollars worth of each product produced.
Answer:
x = $400, y = $200
Explanation:
[tex]a = \left[\begin{array}{ccc}0.4\\0.2\\0.1\end{array}\right]\\b = \left[\begin{array}{ccc}0.5\\0.2\\0.15\end{array}\right][/tex]
[tex]xa + yb = \left[\begin{array}{ccc}260\\120\\70\end{array}\right] \\x \left[\begin{array}{ccc}0.4\\0.2\\0.1\end{array}\right] + y \left[\begin{array}{ccc}0.5\\0.2\\0.15\end{array}\right] = \left[\begin{array}{ccc}260\\120\\70\end{array}\right][/tex]
[tex]\left[\begin{array}{ccc}0.4&0.5\\0.2&0.2\\0.1&0.15\end{array}\right] \left[\begin{array}{ccc}x\\y\end{array}\right] = \left[\begin{array}{ccc}260\\120\\70\end{array}\right]\\\\\left[\begin{array}{ccc}0.1&0.15\\0.2&0.2\\0.4&0.5\end{array}\right] \left[\begin{array}{ccc}x\\y\end{array}\right] = \left[\begin{array}{ccc}70\\120\\260\end{array}\right]\\[/tex]
Perform the following operation on the matrix equation above:
[tex]R_2 \rightarrow R_2 - 2R_1\\R_3 \rightarrow R_3 - 4R_1[/tex]
The result becomes:
[tex]\left[\begin{array}{ccc}0.1&0.15\\0&-0.1\\0&-0.1\end{array}\right] \left[\begin{array}{ccc}x\\y\end{array}\right] = \left[\begin{array}{ccc}70\\-20\\-20\end{array}\right]\\[/tex]
Perform the following operation on the matrix equation above:
[tex]R_3 \rightarrow R_3 - R_2[/tex]
[tex]\left[\begin{array}{ccc}0.1&0.15\\0&-0.1\\0&0\end{array}\right] \left[\begin{array}{ccc}x\\y\end{array}\right] = \left[\begin{array}{ccc}70\\-20\\0\end{array}\right]\\\left[\begin{array}{ccc}0.1&0.15\\0&-0.1\end{array}\right] \left[\begin{array}{ccc}x\\y\end{array}\right] = \left[\begin{array}{ccc}70\\-20\end{array}\right][/tex]
From the matrix equation above:
0.1x + 0.15y = 70.........(1)
-0.1y = -20.............(2)
From equation (2)
y = (-20)/(-0.1)
y = $200
Put the value of y into equation (1)
0.1x + 0.15(200) = 70
0.1x = 40
x = 40/0.1
x = $400
Next Friday, you plan to sell cakes at a bake sale to raise money for your school. You plan to charge $30 per cake, and you anticipate that you will sell 10 cakes. You can either purchase cakes to sell or bake them yourself. If you purchase the cakes, they will cost $15 each. If you bake your own cakes, your cost depends upon the number of cakes you bake, as shown in the table below.
Number of cakes Total cost of baked cakes ($) you bake 0 1 2 3 0 10 36 52 70 90 112 136 162 190 5 7 10
a) How many cakes should you bake? How many cakes should you purchase?
b) Given your answer to part a, how much in total will the 10 cakes cost cake(s) and purchasecake(s) you?
c) How much would it have cost you to bake all 10 cakes?
d) How much would it have cost you to purchase all 10 cakes?
Answer:
a) How many cakes should you bake? How many cakes should you purchase?
you should bake 5 cakes and purchase 5.b) Given your answer to part a, how much in total will the 10 cakes cost cake(s) and purchase cake(s) you?
$145c) How much would it have cost you to bake all 10 cakes?
$190d) How much would it have cost you to purchase all 10 cakes?
$150Explanation:
expected sales 10 cakes
price per cake $30
purchase price $15 per cake
Number of cakes Total cost of baked cakes ($) you bake
0 0
1 10
2 22
3 36
4 52
5 70 average price = $14 per cake
6 90 average price = $15 per cake
7 112
8 136
9 162
10 190
If you make 5 cakes your cost will be lower than if you purchase them. But if you want to bake 6 cakes, then the total cost is the same as purchasing them, therefore, it would be better to start purchasing them.
a) you should bake 5 cakes and purchase 5.
b) $145
c) $190
d) $150
The calculation is as follows:expected sales 10 cakes
price per cake $30
purchase price $15 per cake
Number of cakes Total cost of baked cakes ($) you bake
0 0
1 10
2 22
3 36
4 52
5 70 average price = $14 per cake
6 90 average price = $15 per cake
7 112
8 136
9 162
10 190
If you make 5 cakes your cost will be lower than if you purchase them. However, if you want to bake 6 cakes, so the total cost is the same as purchasing them, therefore, it would be better to start purchasing them.
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Which policy will allow a health care institution to achieve cultural competence most effectively?
A) Making all client education materials available in the client's native dialect.
B) Recruiting culturally diversed health care providers to staff the institution.
C) Providing a merit bonus to employees who complete cultural awareness courses.
D) Implementing a closed circuit television system to broadcast multilingual programming.
Answer:
B)
Explanation:
Cultural competence refers to the ability to understand, communicate with, and effectively interact with people across various cultures. Therefore the best policy to achieve this would be recruiting culturally diverse health care providers to staff the institution. Making sure that the staff is culturally diverse will increase the institutions probability of being able to properly interact and understand all cultures that they do business with.
Economists readily admit that in settings that involve a monopoly or negative externalities, a potential role exists for _______________________. Group of answer choices
Answer:
Government intervention
Explanation:
In settings that involves monopoly or negative externalities, the government has to intervene. Government intervenes in market when resources are not allocated fairly. The reasons for government intervention is to maximize social welfare and they do this by breaking up monopolies and regulating negative externalities such as pollution. Without government intervention businesses would produce negative externalities with facing any consequences. And some organization would have monopolistic powers and this would lead to reduces innovation, lower trades and reduced resources.
On November 1, 2021, New Morning Bakery signed a $195,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1, 2022. New Morning Bakery should record which of the following adjusting entries at December 31, 2021?
A. Debit Interest Expense and credit interest Payable. $1950.
B. Debit Interest Expense and credit Interest Payable, $5850.
C. Debit Interest Expense and credit Cash, $1950.
D. Debit Interest Expense and credit Cash, $5850.
Answer:
Option A is correct
Explanation:
The amount owed and the interest would be paid in six months' time ,hence,prior to that time,any interest incurred would be accrued for.
December 31 2021 is two months after the note payable agreement was reached ,as a result,there is need to record accrued interest for two months,November and December.
Interest accrued=$195,000*6%*2/12=$1950
Interest expense is debited while interest payable is credited
Suppose that the federal administration plans to fight a deep, ongoing recession with a nationwide plan of increasing infrastructure. Congress approves it and adjusts the budget accordingly to put the plan in motion immediately. Aggregate demand spending components include consumption (C), investment (I), government (G), and exports (X) minus imports (M). Analyze what the aggregate demand and aggregate supply model predicts about the infrastructure plan to answer three questions. Does the level of G increase ( ), decrease (-), or stay constant (0)
Answer: Increase (+)
Explanation:
The Government component of the Aggregate Demand refers to money spent by the Government/ Public sector to provide certain needs for the economy such as Education, Defense and Healthcare.
When the government spends on infrastructural development such as the scenario described in the text, they are engaging in a form of spending known as Government Investment. This will increase the amount of G in the aggregate demand model.
The annual demand of an appliance company is 8000 units. The production capacity is 200 units per day. Each time production starts, it costs the company $120 to move materials into place, reset the assembly line, and clean the equipment. The holding cost of a refrigerator is $50 per year. The current production plan calls for 400 refrigerators to be produced in each production run. Assume 250 working days per year. a) Compute the daily demand of this product. b) If the company were to continue to produce 400 units each time production starts, how many days would production continue? c) How many production runs per year would be required? What would the annual cost be? d) how many refrigerators would be in the inventory when production stops? What would be the average inventory level in this case? e) If the company produced 400 refrigerators at a time, what would the total annual set up cost and holding cost be?
Answer and Explanation:
The calculations and computations as per the question requirement are given below
a. Daily demand for this product is
Daily demand = Annual demand ÷ Working days per year
= 8,000 ÷ 250
= 32 units
b. The calculation of the number of days for continuing the production is
= current production plan calls ÷ production capacity
= 400 ÷ 200
= 2 days
c. The production runs per year required is
Number of production runs per year = Annual demand ÷ Production quantity
= 8,000 ÷ 400
= 20
d. In the case of production stops, the number of refrigerators and the average inventory is
But processing this first we have to find out the maximum inventory level which is
= Q × (1 - d ÷ p)
As
Q represents Production quantity
d represents daily demand
p represents production capacity
Therefore, the maximum inventory level is
= 400 × (1 - 32 ÷ 300)
= 400 × (1 - 0.16)
= 400 × 0.84
= 336 refrigerators
Hence, the average inventory is
= Maximyum inventory ÷ 2
= 336 refrigerators ÷ 2
= 168 refrigerators
e. The total annual set up cost and holding cost is
But before this, we need to compute it individually
Annual set up cost = Number of production runs per year × Set up cost
= 20 × $120
= $2,400
Annual holding cost = Average inventory level × Holding cost
= 168 × $50
= $8,400
Total annual set up cost and holding cost is
= $2,400 + $8,400
= $10,800
Alaska Impressions Co. records all cash receipts on the basis of its cash register tapes. Alaska Impressions Co. discovered during October that one of its salesclerks had stolen an undetermined amount of cash receipts while taking the daily deposits to the bank. The following data have been gathered for October:
Cash in bank according to the general ledger $7,030
Cash according to the October 31 bank statement 16,240
Outstanding checks as of October 31 4,640
Bank service charge for October 20
Note receivable, including interest collected by bank in October 7,520
Requied:
a. Determine the amount of cash receipts stolen by the sales clerk.
b. What accounting controls would have prevented or detected this theft?
Answer:
a. Determine the amount of cash receipts stolen by the sales clerk.
$2,930
b. What accounting controls would have prevented or detected this theft?
It is simple, one single person cannot be in charge of collecting cash and making the deposits. At least 2 people must be involved in the process, that way, there will always be someone controlling what the other person does.
Explanation:
Reconciled bank statement:
Bank statement $16,240
- Outstanding checks $4,640
Reconciled bank statement $11,600
Cash account reconciliation:
Cash account balance $7,030
+ Note collected by bank $7,520
- Bank fees $20
Reconciled cash account $14,530
Amount stolen by sales clerk = $14,530 - $11,600 = $2,930
Assume the indirect method is used to compute net cash flows from operating activities. For this item extracted from the financial statements Depletion Expense, indicate the effect on net income in arriving at net cash flows from operating activities by choosing one of the following:
A. Added to Net Income
B. Deduct from Net Income
1. Increase in accounts receivable
2. Increase in inventory
3. Decrease in prepaid expenses
4. Decrease in accounts payable
5. Increase in accrued liabilities
6. Increase in income taxes payable
7. Depreciation expense
8. Loss on sale of investment
9. Gain on disposal of equipment
10. Amortization expense
Answer:
1.B
2.B
3.A
4.B
5.A
6.A
7.A
8.A
9.B
10.A
Explanation:
The Net Income is adjusted with non-cash items and changes in working capital to reach Net Cash Flow from Operating Activities.
The Non Cash Expenses previously deducted must be added back whilst the Incomes previously included must be deducted from it.
The items that increase Working Capital must be deducted whilst items that decrease working capital must be added back.
For each of the following depreciable assets, determine the missing amount. Abbreviations for depreciation methods are SL for straight-line and DDB for double-declining-balance.
Asset Cost Residual Service Life Depreciation Depreciation
Value (Years) Method (Year 2)
A 31,000 5 DDB $30,000
B 30,000 8 SYD 35,00
C 87,000 6,000 SL 9,000
D 252,000 21,000 10 23,100
E 211,000 3,100 8 150%DB
Answer:
Asset Cost Residual Service Life Depreciation Depreciation
Value (Years) Method (Year 2)
A $125,000 $31,000 5 DDB $30,000
B $30,000 $12,000 8 SYD $3,500
C $87,000 $6,000 9 SL $9,000
D $252,000 $21,000 10 straight line $23,100
E $211,000 $3,100 8 150%DB $32,144.53
A) double declining balance:
2 x 1/5 x 0.6cost = $30,000
0.6cost = $30,000 / 0.4 = $75,000
cost = $75,000 / 0.6 = $125,000
B) 8 + 7 + 6 + 5 +4 + 3 + 2 + 1 = 36
depreciation year 2 = 7/36 x ($30,000 - residual value) = $3,500
$30,000 - residual value = $3,500 x 36/7 = $18,000
residual value = $30,000 - $18,000 = $12,000
C) straight line depreciation per year = net depreciable value / useful life
$81,000 / useful life = $9,000
useful life = $81,000 / $9,000 = 9
D) straight line since depreciation per year x useful life = net depreciable value
$23,100 x 10 = $231,000
E) 150% double declining
year 1 = 1.5 x 1/8 x $211,000 = $39,562.50
year 2 = 1.5 x 1/8 x $171,437.50 = $32,144.53
Bank A pays 2% interest compounded annually on deposits, while Bank B pays 1.75% compounded daily.
a. Based on the EAR (or EFF%), which bank should you use?
b. Could your choice of banks be influenced by the fact that you might want to withdraw your funds during the year as opposed to at the end of the year?Assume that your funds must be left on deposit during an entire compounding period in order to receive any interest.
Answer:
Bank A
Yes
Explanation:
Effective annual rate = ( 1 + periodic interest rate)^m - 1
periodic interest rate = interest rate / number of compounding per year
m = number of compounding per year
Bank A = (1 + 0.02) - 1 = 2%
Bank B = (1 + 0.0175 / 365)^365 - 1 = 1.7654%
Bank A should be chosen because the EAR is higher
Yes, it should. if one plans to withdraw during the year, Bank B would be a better option because the amount invested would earn interest when withdrawn.
if one plans to withdraw within the year, and he invests in Bank A, if withdrawal is made within the year, all interest would be forfeited.
a. Bank A should be selected.
b. Yes
Calculation of the EAR:Since we know that
Effective annual rate = ( 1 + periodic interest rate)^m - 1
Here,
periodic interest rate = interest rate / number of compounding per year
m = number of compounding per year
Now
Bank A = (1 + 0.02) - 1 = 2%
Bank B = (1 + 0.0175 / 365)^365 - 1 = 1.7654%
Bank A should be selected since the EAR is higher
b.
Yes, it should. In the case, one plans should be withdrawn at the time of year so here bank B should be a better option since the amount invested earned interest at the time of withdrawn.
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Your family business uses a secret recipe to produce salsa and distributes it through both smaller specialty stores and chain supermarkets. The chain supermarkets have been demanding sizable discounts, but you do not want to drop your prices to the specialty stores. True or False: One way to offer a lower price while defending yourself against antitrust lawsuits would be to offer a volume discount for larger salsa orders.
Answer:
The correct answer is the option: True.
Explanation:
To begin with, in order to establish a better relationship and also to increase the amount of the company's sales the managers has to establish a discount for larger salsa orders so in that way the big supermarket will buy more and will be satisfy for the discount and with the price they are getting and the specialty stores will understand that the difference in the price is due to the amount of the orders. Moreover, by doing that strategy the company is not breaking the antitrust law because there is no special arrengement between the company and the supermaket but is just a matter of volumen and if the specialty stores increases their orders then they will have the discount as well, and therefore the antitrust law is not been broke in any way.
Investigations of large multinationals In manufacturing and service sectors reveal that Group of answer choices the 500 largest multinationals are responsible for about half of the global stock of foreign direct investment. a majority of them use a global strategy. for most companies, the world's marketplace is triad-based rather than global. most of these firms have achieved broad and deep penetration of international markets as a whole. a majority of these firms generate an average of about half of their worldwide revenues within their home region.
Answer:
for most companies, the world's marketplace is triad-based rather than global
Explanation:
Based on investigations of large multinationals in manufacturing and service sectors, it was revealed that most of these companies generate the majority of their revenues within a single region rather than achieving broad and deep penetration of international markets as a whole.
Also, it was concluded that about 80 percent of these firms, generate their worldwide revenues within their home region considered to be a TRIAD of the three largest economic regions of North America, the European Union, and Asia.
Hence, it can be concluded that, Investigations of large multinationals In manufacturing and service sectors reveal that for most companies, the world's marketplace is triad-based rather than global, and this due to factors such as increasing capital intensity, soaring Research & Developmemt costs, converging worldwide consumer tastes and intensifying protectionism
Assume that Swiss investors have francs available to invest in securities, and they initially view U.S. and British interest rates as equally attractive. Now assume that U.S. interest rates increase while British interest rates stay the same. This would likely cause:__________
Answer:
the swiss demand for dollars to increase and the dollar will
Explanation:
Salvia Company recently purchased a truck. The price negotiated with the dealer was $44,500. Salvia also paid sales tax of $2,900 on the purchase, shipping and preparation costs of $3,900, and insurance for the first year of operation of $4,900. At what amount should the truck be recorded on the balance sheet prior to recording depreciation expense
Answer:
$51,300
Explanation:
The computation of the amount of the truck to be recorded before recording the depreciation is shown below:
= Price negotiated + sales tax paid on the purchase + shipping and other cost
= $44,500 + $2,900 + $3,900
= $51,300
We simply added the three items so that the amount of the truck could arrive
Suppose you bought a bond with an annual coupon rate of 7.4 percent one year ago for $897. The bond sells for $926 today. a. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year
Answer:
Total dollar return is $103.00
Explanation:
The total dollar return on the investment comprises of the increase in price as well as the annual coupon of 7.4% of face value received over the holding period of one year.
annual coupon=face value*coupon rate=$1000*7.4%=$74.00
increase in bond's price=$926-$897=$29.00
Total dollar return on investment=$74.00+$29.00
Total dollar return on investment=$103
intext:"Callie Company received a $700 payment from a customer previously billed for services performed. The journal entry to record this transaction would include a"
Answer:
Debit Cash account $700
Credit Accounts receivable $700
Explanation:
When revenue is earned but cash is yet to be received,
Debit Accounts receivable
Credit Revenue account
When cash is received,
Debit Cash account
Credit Accounts receivable.
As such, when a company received $700 from a customer previously billed for services performed,
Debit Cash account
Credit Accounts receivable
Webster preferred stock pays an annual dividend of $6.20 a share. What is the maximum price you should pay today to purchase this stock if you desire a rate of return of 14.25 percent
Answer:
Maximum price = $43.50
Explanation:
According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return
This principle can be applied as follows:
The value of cash flow the stock today is the present value of the future cash flow discounted at the required rate of return
The Di
P= D/ke
P= price of the stock today,- ?
D- annual dividend- 6.20
Ke- Cost of equity-14.25%
Price = 6.20/0/14.25=43.50
Maximum price = $43.50
Last year Mason Inc. had a total assets turnover of 1.33 and an equity multiplier of 1.75. Its sales were $320,000 and its net income was $10,549. The CFO believes that the company could have operated more efficiently, lowered its costs, and increased its net income by $5,250 without changing its sales, assets, or capital structure. Had it cut costs and increased its net income in this amount, by how much would the ROE have changed? Select the correct answer. a. 4.38% b. 2.14% c. 3.26% d. 3.82% e. 2.70%
Answer: d. 3.82%
Explanation:
ROE = Net Income / Equity so Equity need to be ascertained.
1.75 = Total Assets/ Total Equity
Total Equity = Total Assets/ 1.75
1.33 = Revenue / Total Assets
Total Assets = Revenue / 1.33
= 320,000/1.33
= $240,601.50
Total Equity = 240,601.50/1.75
= $137,486.57
Old ROE = 10,549/ 137,489.57
= 0.07672582
= 7.67%
New ROE = (10,549 + 5,250) / 137,489.57
= 0.11491053466
= 11.49%
Difference = 11.49 - 7.67
= 3.82%
Use the following demand schedule to determine total and marginal revenues for each possible level of sales.
Product
Price Quantity Demanded Total Revenue Marginal Revenue
$2 0 $ ---
2 $
2 2
2 3
2 4
2 5
What can you conclude about the structure of the industry in which this firm is operating?
The industry is purely monopolistic.
The industry is purely oligopolistic.
The industry is an example of monopolistic competition.
The industry is purely competitive.
Answer:
please check the attached image for the completed table containing the answers
The industry is purely competitive.
Explanation:
please check the attached image for a clear image of the table used in answering this question
Total revenue = product price x quantity demanded
for example, total revenue when quantity demanded is 2 is $ x 2 = $4
Marginal revenue is change in total revenue.
marginal revenue = total revenue - previous total revenue
e.g. marginal revenue when quantity demanded is 2 is = $4 - $2 = $2
the structure of the industry is a purely competitive market because price is equal to marginal revenue.
A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
In a world with no taxes, Modigliani and Miller (MM) show that a firm's capital structure does not affect its value. However, when taxes are considered, MM show a positive relationship between debt and value, i.e., the firm's value rises as it uses more and more debt, other things held constant.
A. True
B. False
Answer:
true
Explanation:
with taxes, the value of a company increases as more debt is used. the value of a company with debt is greater than the value of the company without debt for the same level of operating income.
according to the MM proposition, the value of the company with tax = Vu + tD
Where Vu is value of unlevered company and tD is tax rate multiplied by debt . tD is known as tax shield. As debt increases, the value of the tax shield increases and the value of the company increases
Knowledge Check 01 As of December 31, Marr, Inc., has accrued benefits to its employees for medical insurance (in the amount of $12,000) and a contribution to a retirement program (at 10% of the employees' $200,000 gross salary). Prepare the December 31 entry for Marr by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer:
Journal Entry to record the employee benefit expense
Dr. Employee Benefits Expense $32,000
Cr. Employee Medical Insurance Payable $12,000
Cr. Employee retirement program payable $20,000
Explanation:
Employee benefits expense is the sum of medical insurance and retirement program expenses. As these payments are accrued and not yet been paid, so these will be classified as liabilities.
Employee Medical Insurance expense = $12,000
Employee retirement expense = $200,000 x 10% = $20,000
Employee benefits expense = Employee Medical Insurance + Employee retirement program
Employee benefits expense = $20,000 + $12,000
Employee benefits expense = $32,000