An introduction to the topic is to explain the effects of unit tax. A tax imposed on a good is known as a unit tax, which raises the market price by an amount equal to the tax.
1. The price paid by consumers is $14.
2. The net price received by producers is $10
3. The dollar amount of the unit tax is $1.
The burden of the tax is shared by buyers and sellers. In a competitive market, buyers and sellers interact based on their willingness to pay for or receive a product.
A supply and demand graph with a demand line and two supply lines, one with and one without the tax, was given.
The demand line intersects supply without the tax at a price of 11 and a quantity of 6 and intersects the supply with the tax line at a price of 14 and a quantity of 5.
The tax increases the market supply price, which causes the quantity of the item demanded to decrease, which results in an excess supply.
The tax shifts the supply curve upward by the amount of the tax. The tax decreases the quantity supplied and shifts the supply curve to the left.
Let us analyze the given options to find out the answers:
Option 1: $11, $14, $3
Option 2: $14, $10, $1
Option 3: $14, $11, $3
Option 4: $14, $10, $4
Option 5: $11, $10, $1
We can see that the correct answer is Option 3: $14, $11, $3. The price paid by consumers is $14, the net price received by producers is $11, and the dollar amount of the unit tax is $3.
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7. A marketing channel intermediary knows its customers want to be able to buy in large quantity, so it needs to be especially concerned about the it provides to customers. a. spatial convenience b. service backup c. lot size d. waiting time e. product variety 8. A company that is developing a national chain of dealerships to sell used cars at one fixed price needs to be concerned about providing its customers with which of the following services desired by customers? a. a high level of spatial convenience b. product differentiation c. market aggregation d. Form utility e. a narrow assortment breadth 9. With which of the following products is its manufacturer most likely to use exclusive distribution? a. men's dress shirts b. pruning sheers c. handheld calculator d. baby grand piano e. Star Wars merchandise 10. Channel objectives should be: a. stated in terms of which channels will be used b. written with the strengths and weaknesses of intermediaries in mind c. uniform across product lines d. designed to be impervious to temporary changes in the external environment e. all of the above 11. Once channel objectives have been established the next step in channel design is to: a. determine service output levels b. select the channel members c. set up contingency plans in the event of environmental changes d. identify the major channel alternatives e. evaluate the major channel alternatives
A marketing channel intermediary knows its customers want to be able to buy in large quantity, so it needs to be especially concerned about the "lot size" it provides to customers. A lot size is the quantity of a product offered for sale.
A company that is developing a national chain of dealerships to sell used cars at one fixed price needs to be concerned about providing its customers with which of the following services desired by customers? The correct answer is "product differentiation." A company that is developing a national chain of dealerships to sell used cars at one fixed price must provide product differentiation to differentiate its product from competitors.
With which of the following products is its manufacturer most likely to use exclusive distribution? The correct answer is "baby grand piano." A baby grand piano is the product with the most exclusive distribution as it is costly and needs the utmost attention to detail during transportation and delivery.
Channel objectives should be "written with the strengths and weaknesses of intermediaries in mind." Channel objectives should be defined in line with the strengths and weaknesses of intermediaries so that effective strategies could be developed to achieve channel objectives.
Once channel objectives have been established the next step in channel design is to "identify the major channel alternatives." This is the most critical step as the channel objectives decide how the manufacturer plans to sell its product, and the right distribution channels must be chosen to ensure that the product reaches the right consumers.
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James and Martha also run a small convenience store with their gas station. They sell fresh produce, which it obtains from local farmers. During the cherry season, demand for fresh cherries can be reasonably approximated by a normal distribution with a mean of 128 pounds per day and a standard deviation of 16.57 pounds per day. During the day, cherries can only be delivered once a day in the morning. Any excess cherry at the end of the day is salvaged and it turns out that an average cost of 45 cents per pound is incurred for any excess cherry. Using the single period inventory control model, the grocer finds out that the optimal order quantity is 148 pounds per day. a) What is the implied shortage cost per pound? b) Your answer from part (a) has been presented to Martha. She responds saying that the amount is too high and the actual unit shortage cost is far less. Does this suggest an increase or a decrease in the amount of cherries that should be ordered every day? Explain briefly (max 2 sentences please). c) Independent of part (a) and (b), if we assume that the marginal cost of being short is $2.15 /pound, what should be the optimal order quantity?
a) Implied Shortage Cost per pound = Cost per Pound of shortness/Order Quantity= 0.85 cents.
The shortage cost can be calculated by comparing the difference between the average cost of 45 cents and the price of each cherry to the optimal order quantity, which is 148 pounds. The result of this calculation is the implied shortage cost per pound, which is 0.85 cents.
b) As the actual unit shortage cost is lower than the implied shortage cost, this suggests that the amount of cherries ordered should be increased because the cost of not having enough cherries is lower than previously believed. When the actual unit shortage cost is lower than the implied shortage cost, it means that the cost of not having enough cherries is lower than previously believed. Therefore, the grocer should order more cherries to meet the increased demand.
c) The optimal order quantity = √[(2 × D × C0) ÷ Cm]= approximately 196 pounds. Cm represents the marginal cost of being short, which is $2.15/pound. C0 is the cost of excess or shortage, which is 45 cents/pound. D is the demand for cherries, which is 128 pounds/day. Using the formula, the optimal order quantity is about 196 pounds.
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In an effort to increase employment by stimulating investment spending, policymakers would
a. sell bonds.
b. purchase US government bonds on the open market.
c. increase the federal funds rate.
d. increase government spending.
e. increase transfer payments.
The most relevant options for policymakers aiming to increase employment and stimulate investment spending would be to increase government spending (d) and increase transfer payments (e).
In an effort to increase employment by stimulating investment spending, policymakers would typically consider options such as:
d. Increase government spending: By increasing government spending on infrastructure projects, education, healthcare, or other sectors, policymakers can create job opportunities and stimulate investment in the economy. This can lead to increased economic activity and potentially higher employment levels.
e. Increase transfer payments: Increasing transfer payments, such as unemployment benefits, welfare programs, or social security payments, can provide individuals with additional income. This, in turn, can increase their spending power and stimulate demand for goods and services, thereby potentially boosting investment and employment.
Selling bonds (a) and purchasing US government bonds on the open market (b) are monetary policy tools rather than fiscal policy tools. While they can influence interest rates and the overall economy, they are not directly targeted at increasing employment.
Increasing the federal funds rate (c) is a monetary policy tool used by central banks to control inflation and manage the money supply. It is not specifically aimed at increasing employment or investment spending. In fact, increasing the federal funds rate may have the opposite effect by making borrowing more expensive and potentially reducing investment.
Therefore, the most relevant options for policymakers aiming to increase employment and stimulate investment spending would be to increase government spending (d) and increase transfer payments (e).
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The following is the Statement of Financial Position and the
Statement of Income for Markus Limited:
Markus Limited
Statement of Financial Position
As at December 31, 2021
2021
2020
Assets
C
Markus Limited’s Statement of Financial Position and Statement of Income is given for the year ended December 31, 2021. In this statement, the Assets and Liabilities of Markus Limited are compared with those of the previous year.
In the given Statement of Financial Position, the assets and liabilities of Markus Limited are presented for the years 2020 and 2021. In 2021, the company's non-current assets were C500,000, which is C25,000 more than in 2020.
The firm's inventory has increased by C70,000 to reach C205,000 in 2021.
Furthermore, cash and cash equivalents also increased to C115,000 in 2021, compared to C100,000 in 2020.
When we look at the liability section, Markus Limited’s accounts payable increased by C50,000 to C270,000 in 2021. The company also took out a loan of C80,000 in 2021, compared to none in 2020.
In terms of Equity, Markus Limited’s retained earnings increased by C35,000 in 2021, while common shares remained unchanged.
Overall, Markus Limited has seen a growth in assets and liabilities in 2021 compared to 2020. This growth can be seen in the increase of non-current assets, inventory and cash, which all increased during the year.
While there was an increase in accounts payable and loan, there was no change in the number of common shares, and retained earnings increased by C35,000. This indicates that the company has been profitable and has retained a portion of the profit in the business.
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In early 2018, Coca-Cola Company (KO) had a share price of
$45.3,
and had paid a dividend of
$1.52
for the prior year. Suppose you expect Coca-Cola to raise this dividend by approximately
6.2%
per year in perpetuity.
a. If Coca-Cola's equity cost of capital is
8.3%,
what share price would you expect based on your estimate of the dividend growth rate?
b. Given Coca-Cola's share price, what would you conclude about your assessment of Coca-Cola's future dividend growth?
If Coca-Cola's equity cost of capital is 8.3%, Given data: Share price of Coca-Cola Company (KO), Po = $45.3Dividend paid in the prior year, Do = $1.52Expected dividend growth rate, g = 6.2%Cost of equity capital, Ke = 8.3%Dividend discount model is used to calculate the intrinsic value of the stock.
The formula is given by:[tex]Po = (Do (1 + g)) / (Ke - g)[/tex] On substituting the given values, we get[tex]Po = (1.52 (1 + 6.2%)) / (8.3% - 6.2%) = $66.96[/tex] Therefore, based on the given estimate of dividend growth rate, the expected share price of Coca-Cola Company is $66.96.
Given Coca-Cola's share price, what would you conclude about your assessment of Coca-Cola's future dividend growth?The current share price of Coca-Cola Company is $45.3. We have calculated the expected share price based on the given dividend growth rate, which is $66.96.
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I enter an agreement with my neighbor to buy 215 sheep on August 31 st. What type of contract is this and what is my position? Long futures position Short futures position Long forward position Short forward position
When a person enters an agreement with a neighbor to buy 215 sheep on August 31st, the contract is referred to as a Long forward position.
The long forward position means that the person has agreed to purchase an underlying asset (in this case, sheep) at a specified price (agreed upon with the neighbor) at a future date (August 31st). It is a contractual agreement between the two parties to buy and sell the asset at a predetermined price and date.
The buyer of the forward contract is said to hold a long position in the forward contract, while the seller of the forward contract is said to hold a short position in the forward contract.
In this case, the person who enters the agreement to purchase the sheep has a long forward position, which means that they are obligated to purchase the 215 sheep at the agreed-upon price on August 31st.If the person changes their mind and decides not to purchase the sheep, they would be in breach of the contract.
On the other hand, if the neighbor fails to deliver the sheep on August 31st, they would be in breach of the contract and may be liable for damages as a result. In summary, when a person enters an agreement with a neighbor to buy 215 sheep on August 31st, the type of contract is a Long forward position, and their position is that of the buyer or holder of the long position in the forward contract.
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Three years ago, Jameson and Co. issued 20-year coupon bonds. The yield to maturity at the time of issuance was 5 percent and the bonds sold at par. The bonds are currently selling at 90 percent of par value. What is the current yield to maturity for these bonds? [Assume that the coupon is paid annually]. (Round your answer to 2 decimal places and record as a percent but without a percent sign. For example, record 18.3893 2.71 % as 18.39).
The current yield to maturity for these bonds is 5.56%.
The current yield to maturity (YTM) for the bonds can be calculated using the following steps:
1. Calculate the annual coupon payment:
- Since the bonds were issued with a yield to maturity of 5 percent and sold at par, the coupon rate must also be 5 percent.
- Multiply the coupon rate by the par value of the bond to get the annual coupon payment.
2. Determine the current price of the bond:
- The bonds are currently selling at 90 percent of par value, which means the price is 0.9 times the par value.
- Multiply the par value by 0.9 to get the current price.
3. Calculate the current yield to maturity:
- Divide the annual coupon payment by the current price of the bond.
- Multiply the result by 100 to convert it to a percentage.
Here's an example calculation:
Let's say the par value of the bond is $1,000.
1. The annual coupon payment is 5 percent of $1,000, which is $50.
2. The current price of the bond is 0.9 times $1,000, which is $900.
3. The current yield to maturity is ($50 / $900) * 100 = 5.56%.
Therefore, the current yield to maturity for these bonds is 5.56%.
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During any given year, each stock in a portfolio will either increase in value or decrease in value (no stock will remain exactly even). Assume that each stock in the portfolio has a 56% chance of increasing in value. The portfolio contains six different stocks and the stock prices are independent of each other. (a) What is the probability that all of the stocks decrease in value during the year? (Round answer to four decimal places.) (b) What is the probability that at least one of the stocks will increase in value during the year? (Round answer to four decimal places.) (c) What is the probability that at least one of the stocks will decrease in value during the year? (Round answer to four decimal places.)
(a) Probability of all stocks decreasing = 0.0146, (b) Probability of at least one stock increasing = 0.9854, (c) Probability of at least one stock decreasing = 0.8926
To solve these probability questions, we need to use the concept of independent events. Let's calculate the probabilities for each scenario:
(a) The probability that a single stock decreases in value is 1 - 0.56 = 0.44. Since the stock prices are independent of each other, the probability that all six stocks decrease is the product of the individual probabilities: 0.44^6 = 0.0146 (rounded to four decimal places).
(b) The probability that at least one stock increases in value is equal to 1 minus the probability that all stocks decrease. So, it is 1 - 0.0146 = 0.9854 (rounded to four decimal places).
(c) Similarly, the probability that at least one stock decreases in value is 1 minus the probability that all stocks increase. Since the probability of a stock increasing is 0.56, the probability of all stocks increasing is 0.56^6 = 0.1074 (rounded to four decimal places).
Therefore, the probability that at least one stock decreases is 1 - 0.1074 = 0.8926 (rounded to four decimal places).
In summary, the probabilities are:
(a) Probability of all stocks decreasing = 0.0146
(b) Probability of at least one stock increasing = 0.9854
(c) Probability of at least one stock decreasing = 0.8926
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Rupert, Inc. reports $408,000 of income tax expense on its 2022 income statement. Rupert reports income taxes payable of $50,000 at December 31, 2021, and $22,500 at December 31, 2022. Rupert has no deferred taxes.
The income statement provides a summary of an organization's performance over a given period, summarizing its revenue, expenses, gains, and losses. For a taxable organization, the income statement includes a provision for income taxes (income tax expense).
Rupert, Inc. reports $408,000 of income tax expense on its 2022 income statement. Rupert reports income taxes payable of $50,000 at December 31, 2021, and $22,500 at December 31, 2022. Rupert has no deferred taxes. The provision for income taxes is generally the sum of the present tax obligation for the year plus or minus any adjustments made in prior years, if any, plus or minus the change in deferred taxes, if any. In this instance, there were no deferred taxes in 2021 or 2022.
The provision for income taxes reported on the income statement, as opposed to income taxes payable or refundable on the balance sheet, represents the amount of income taxes that the company anticipates will be paid to the tax authorities on the current year's taxable income.
The income tax expense for the year 2022 is $408,000, which will be paid in the following year. In contrast, the income tax payable account on the balance sheet indicates the amount of taxes payable to the tax authorities. Rupert had $50,000 in income tax payable at the end of 2021 and $22,500 at the end of 2022.
The difference between the income tax expense and the income tax payable is due to the fact that the current year's tax expense includes any changes in deferred taxes that arose during the year, while the income tax payable account on the balance sheet does not include any changes in deferred taxes.
Overall, the content loaded above informs us that Rupert, Inc. has an income tax expense of $408,000 in its 2022 income statement. It has income tax payable of $50,000 on December 31, 2021, and $22,500 on December 31, 2022. In addition, there were no deferred taxes in either year.
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Using one of the major tools (Value Chain, Resource Analysis,
Organizational Design, Sources of Competitive Advantage, and
Industry Life Cycle), choose a company and analyze it using one of
these tool
The company's brand is associated with high quality and innovation. Apple's resources, especially its technological know-how, have allowed it to develop high-quality products that have become household names.
Organizational Design: Apple Inc.Apple Inc. is an American technology firm. Its organizational design is structured, with separate divisions in the company.The following are the main components of the company's organizational design:Functional Structure:Apple Inc. is divided into divisions based on functions, such as the Hardware Engineering division, which is responsible for creating hardware solutions for Apple's goods. The Software Engineering division is responsible for developing software that runs on Apple's devices.Geographic Structure:Apple Inc. has different regional divisions throughout the world that are responsible for running operations and managing sales in their respective regions.Product-Based Structure:Apple Inc. has a structure in which divisions are organized according to the goods they make, such as the iPhone, iPad, and Mac divisions.
Matrix Structure:
Apple Inc. combines the features of a functional structure with those of a product-based structure in a matrix structure. This structure enables the business to collaborate on a project-by-project basis across divisions.Resource Analysis: Apple Inc.Apple's resources include its technological expertise, brand, innovative products, and retail networks.
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one of the unpleasant secrets of using your credit card for a cash advance is that the apr on the cash advance is typically lower than the apr for normal purchases.
One of the unpleasant secrets of using your credit card for a cash advance is that the APR (Annual Percentage Rate) on the cash advance is typically higher than the APR for normal purchases, not lower.
When you use your credit card for cash advances, such as withdrawing cash from an ATM or writing convenience checks, credit card companies usually impose higher interest rates on these transactions compared to regular purchases. The APR for cash advances tends to be significantly higher, often accompanied by additional fees or finance charges.
This higher APR is due to several factors, including the increased risk associated with cash advances, the immediate availability of funds, and the potential lack of a grace period for interest charges. It is important to carefully review your credit card terms and conditions to understand the specific APR and fees associated with cash advances, as they can quickly accumulate and lead to substantial interest costs.
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Sofie was injured when his Shopsmith combination power tool threw off a piece of wood that struck her in the head. SHe sued the manufacturer, claiming that he had followed the product instructions and that the product must be defective. Would tort law applies here? Explain. NOTE: Support your answer with a minimum of three paragraphs.
Tort law would apply in this case as Sofie suffered an injury due to a defective product. To prove her case, Sofie would need to establish that the product was defective and that she had used the product in the manner intended by the manufacturer.
To prove her case, Sofie would need to establish that the Shopsmith combination power tool was defective and that this defect caused her injury. She would also need to prove that she had used the product in the manner intended by the manufacturer, as stated in the product instructions. If Sofie can establish these elements, she may be entitled to damages under tort law.
The manufacturer of the Shopsmith combination power tool may be liable for Sofie's injury if it can be shown that the product was defective in some way. This could include a design defect, a manufacturing defect, or a failure to warn of potential risks associated with the product. If the manufacturer knew or should have known of the defect and failed to take appropriate action to address it, they may be found liable under tort law.
In conclusion, Sofie has a valid claim under tort law if she can prove that her injury was caused by a defect in the Shopsmith combination power tool and that she had used the product in the manner intended by the manufacturer. The manufacturer may be held liable if it can be shown that they were aware of the defect and failed to take appropriate action to address it.
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ow are scan backs better than off invoice promotions?
What did the experiment show about the benefits of scan back promotions?
What are retail pass-through rates?
How do slotting fees affect consumers? Discuss the ways in which consumers are affected by the practice of charging slotting fees (as discussed in class).
Why is the Federal Trade Commission unable to draw rules or policies regarding slotting fees?
Scan-back promotions are more beneficial than off-invoice promotions because provide discounts, efficient, higher redemption rate. Retail pass-through rates are the percentage of trade promotions that pass from the retailers to the consumers in the form of price discounts. The Federal Trade Commission (FTC) is unable to draw rules or policies regarding slotting fees because of Slotting fees.
Scan-back promotions are more beneficial than off-invoice promotions because of the following reasons:
Scan-back promotions provide discounts to the consumers at the time of purchase, which increases their loyalty to the brand. In contrast, off-invoice promotions provide discounts to the retailers instead of consumers.
In scan-back promotions, the brand pays the retailer after the sale is made, so there is a high probability that the promotion will be executed correctly, and there won't be any errors in the process.
The experiment conducted showed that the scan-back promotions have a higher redemption rate, and the sales lift was significant in comparison to the off-invoice promotions.
Retail pass-through rates are the percentage of trade promotions that pass from the retailers to the consumers in the form of price discounts. The pass-through rate can be calculated by dividing the amount of trade promotions offered by the manufacturers to the retailers by the total retail sales during that period.
Slotting fees affect consumers in many ways, and some of the ways are as follows:
Consumers are affected by slotting fees as the cost of the product increases, which leads to higher prices in the market.
The variety of products that consumers can buy from the market decreases as the slotting fees force the manufacturers to concentrate on producing a limited number of products, which ultimately decreases the variety for consumers.
The Federal Trade Commission (FTC) is unable to draw rules or policies regarding slotting fees because of the following reasons:
Slotting fees are paid to the retailers, and it is a voluntary payment, which means it's up to the retailers to decide whether to take the payment or not, which makes it difficult for the FTC to regulate this practice.
Slotting fees are considered as promotional expenses and not a violation of antitrust laws, which means that it is legal for manufacturers to pay the fees to retailers.
Thus, it becomes difficult for the FTC to regulate something that is not against the law.
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Which of the following risks is not diversifiable? systematic risk non-systematic risk idiosyncratic risk total risk
Among the following risks, systematic risk is not diversifiable. Systematic risk is a type of market risk that is unpredictable and affects the overall market. It is associated with external factors such as fluctuations in interest rates, economic recessions, and political instability and it cannot be eliminated through diversification. Systematic risk is a type of risk that is unpredictable and affects the overall market.
It is associated with external factors such as fluctuations in interest rates, economic recessions, and political instability. Systematic risk is different from non-systematic risk because non-systematic risk affects specific companies or industries, whereas systematic risk is more general and affects the overall market. Because systematic risk is related to the market and external factors, it cannot be eliminated through diversification. Investors can reduce their exposure to systematic risk by investing in different types of assets such as bonds, commodities, and real estate. However, they cannot completely eliminate systematic risk. In contrast, non-systematic risk and idiosyncratic risk can be reduced through diversification. Idiosyncratic risk is specific to individual companies or industries and can be eliminated through diversification. Non-systematic risk is similar to idiosyncratic risk but affects multiple companies or industries. It can also be reduced through diversification. Total risk is the combination of systematic risk and non-systematic risk.
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which of the following is a risk management strategy where you place the responsibiility of loss due to a risk onto antoher
When assigning responsibilities for monitoring risk mitigation plans, the following criteria is most important: To properly assess the monitoring process, those doing the monitoring must hear from those close to the risks/controls. The correct option is A.
This criterion emphasizes the importance of obtaining input and feedback from individuals who are directly involved in or have knowledge of the risks and controls being monitored. By involving those close to the risks and controls, the monitoring process can gather valuable insights, identify potential issues or gaps, and ensure a comprehensive assessment of risk mitigation efforts.
Thus, the ideal selection is option A.
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The complete question might be:
When assigning responsibilities for monitoring risk mitigation plans, which of the following criteria is most important?
a. To properly assess the monitoring process, those doing the monitoring must hear from those close to the risks/ controls
b. Monitoring should focus on established, not emerging, risks
c. To insure an independent attitude, monitoring responsibility should be limited to higher levels rather than at levels where detailed processes occur
d. Those with monitoring responsibility can generally minimize consideration of cost-benefit analysis
On November 1, 2021, Aviation Training Corp. borrows $58,000 cash from Community Savings and Loan. Aviation Training signs a three-month, 6% note payable. Interest is payable at maturity. Aviation's year-end is December 31.
Required:
1.-3. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
View transaction list
View journal entry worksheet
No
1
Date
General Journal
Debit
Credit
November 01, 2021
Cash
58,000
December 31, 2021
Interest Expense
580
3
February 01, 2022
Notes Payable
2
58,580
1. November 1, 2021: Debit Cash $58,000, Credit Notes Payable $58,000.
2. December 31, 2021: Debit Interest Expense $580, Credit Notes Payable $580.
3. February 1, 2022: Debit Notes Payable $58,580, Credit Cash $58,580.
1. On November 1, 2021, Aviation Training Corp. borrows $58,000 cash, which increases their cash balance and creates a liability called Notes Payable. The entry reflects this by debiting Cash and crediting Notes Payable.
2. On December 31, 2021, Aviation Training Corp. accrues interest expense for the three-month period. Since the interest is payable at maturity, there is no cash transaction. The entry debits Interest Expense to recognize the expense and credits Notes Payable to reduce the liability.
3. On February 1, 2022, when the note matures, Aviation Training Corp. pays off the loan. They debit Notes Payable to reduce the liability and credit Cash to reflect the cash outflow.
These entries ensure accurate recording of the borrowing, recognition of interest expense, and repayment of the loan in the company's financial statements.
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Which of the following describes a strategy used by workers to avoid competing with one another in the labor market and instead to sell their services collectively?
Multiple choice question.
a) Compartmentalization
b)Privatization
c)Unionization
d)Deindustrialization
The answer is c) Unionization. Compartmentalization is the division of a complex system into smaller, more manageable parts.
Privatization is the transfer of ownership of a business, enterprise, or public service from the public sector to the private sector.
Deindustrialization is the decline of manufacturing in a country or region. Unionization is the process of workers joining together to form a union, which is a collective bargaining unit that negotiates with employers on behalf of its members. By joining a union, workers can avoid competing with one another in the labor market and instead sell their services collectively. This gives them more bargaining power and allows them to negotiate for better wages, benefits, and working conditions.
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Protein Futures has a $5 million bond obligation outstanding which it is considering refunding. The bonds were issued at 6% and the interest rates on similar bonds have declined to 3%. The bonds have six years of their 15 year maturity remaining. Protein Futures will pay a call premium of 4% and will incur underwriting costs of $353,000 immediately. There is no overlap period, and there is no underwriting cost considerations on the old bond. The company is in a 30% tax bracket. To analyze the refunding decision use a 6% discount rate. (this is already adjusted for risk). Required: A) How much is the call premium? B) How much is the total amount paid today in underwriting costs? $ C) How many years are the underwriting costs amortized over? D) How much is the annual tax savings each year as a result of the underwriting costs? $ E) How much are those annual tax savings, calculated in part D, worth today (round to nearest dollar)? $
The complete solution is given below. A) Call premium: The call premium is calculated as a percentage of the par value of the bond. Call premium = 4% × Par Value = 0.04 × $5,000,000
Call Premium = $200,000
B) Total amount paid today in underwriting costs: Underwriting cost = $353,000
C) Number of years the underwriting costs are amortized over: The underwriting cost is paid upfront, so it will be amortized over the remaining life of the bond. Amortization period = 15 − 6 = 9 years
D) Annual tax savings as a result of the underwriting costs:
Since the company is in the 30% tax bracket, the annual tax savings are:
Annual tax savings = 30% × $353,000 = $105,900
E) Present value of the annual tax savings:
Present value = Annual tax savings × Present value factor
Present value factor = Annuity factor (n = 9, r = 6%) × (1 + 6%)9
Present value factor = 6.1940 × 0.5645
Present value factor = 3.4965
Present value = $105,900 × 3.4965
Present value = $370,099
Therefore, the call premium is $200,000, the total amount paid today in underwriting costs is $353,000, the number of years the underwriting costs are amortized over is 9 years, the annual tax savings as a result of the underwriting costs is $105,900, and the present value of the annual tax savings is $370,099.
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MNO's taxable income was $900 during 2023. MNO had product warranty costs of $360 recognizable for tax purposes and $400 recognizable for financial accounting purposes. MNO had no other temporary differences. MNO's pre-tax accounting income for 2023 would be: a. $860 b. $900 c. $940 d. $1,260
MNO's pre-tax accounting income for 2023 would be $940.Explanation:Temporary differences are the differences between the financial accounting and tax bases of assets and liabilities that will reverse and affect taxable income in future years.
Temporary differences may arise from differences in the timing of when transactions affect the two different bases, differences in the measurement of tax rules and financial accounting rules, and the use of different tax rates to calculate tax expense. In the given scenario, the amount of product warranty costs of $400 recognizable for financial accounting purposes will be reversed as taxable income in future years. So, this represents a temporary difference.The taxable income of MNO is $900, which represents the amount that is calculated as per tax rules. For temporary differences, the accounting income is adjusted to derive the taxable income. Thus, pre-tax accounting income = taxable income + temporary differences. Temporary difference = $400 - $360 = $40. Pre-tax accounting income for MNO would be:$900 + $40 = $940Hence, the correct answer is option C.
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What employment opportunities related to Tourism and Hospitality
are available in your country Bangladesh ？Do you want to work in
the Tourism and Hospitality industry? Why or Why not?
In Bangladesh, the tourism and hospitality industry has seen tremendous growth and development in recent years, providing job opportunities for individuals with various skills and backgrounds.
The following are some of the employment opportunities available in the country's tourism and hospitality industry.
1. Hotel and Resort Management: With the increasing number of domestic and foreign tourists, the demand for hotel and resort management professionals has risen.
2. Food and Beverage Service: Working in a restaurant, café, or bar, as a waiter, waitress, bartender, or kitchen staff, offers a variety of career options.
3. Tour Guide: Tour guides are in high demand in Bangladesh, particularly in areas of natural beauty, such as the Sundarbans and Cox's Bazar.
4. Event Management: With the increasing number of corporate and social events, event management professionals are in high demand.
5. Travel Agent: A travel agent's job is to help people plan their trips and arrange their travel requirements, such as accommodation, transportation, and activities.
In conclusion, the tourism and hospitality industry in Bangladesh offers a broad range of employment opportunities for people with different backgrounds and skills.
It is a sector with significant growth potential and is expected to provide further job opportunities in the coming years.
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an avocado orchard employs five full-time workers. currently, the average product of labor is 120 pounds of avocados per day. the orchard hires a 6th full-time worker and his marginal product is 150 pounds of avocados. the average product of the six workers will now be a. more than 120 pounds. b. less than 120 pounds. c. equal to 120 pounds. d. greater than the marginal product of labor.
The correct answer is a more than 120 pounds.
The average product of labor is a measure of the output produced per worker in a given time period. In this case, the average product of labor is initially 120 pounds of avocados per day for five workers.
When the orchard hires a sixth full-time worker, his marginal product of labor is 150 pounds of avocados. The marginal product of labor refers to the additional output produced by adding one more unit of labor.
To determine the new average product of the six workers, we can calculate the total output produced by the six workers and divide it by the number of workers.
Let's assume that the total output produced by the six workers is X pounds of avocados per day.
For the five workers, the total output is 120 pounds of avocados per day * 5 workers = 600 pounds of avocados per day.
Since the marginal product of the sixth worker is 150 pounds of avocados per day, the total output for the six workers would be 600 pounds + 150 pounds = 750 pounds of avocados per day.
Now, we can calculate the new average product of the six workers by dividing the total output (750 pounds) by the number of workers (6 workers):
New average product of labor = 750 pounds / 6 workers = 125 pounds of avocados per day.
Therefore, the average product of the six workers will now be more than 120 pounds.
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On April 1, Julie Spengel established Spengel's Travel Agency. The following transactions were completed during the month. 1. Invested $15,000 cash to start the agency. 2. Paid $600 cash for April office rent. 3. Purchased equipment for $3,000 cash. 4. Incurred $700 of advertising costs in the Chicago Tribune, on account. 5. Paid $900 cash for office supplies. 6. Performed services worth $10,000:$3,000 cash is received from customers, and the balance of $7,000 is billed to customers on account. 7. Withdrew $600 cash for personal use. 8. Paid Chicago Tribune $500 of the amount due in transaction (4). 9. Paid employees' salaries $2,500. 10. Received $4,000 in cash from customers who have previously been billed in transaction (6). Instructions :
a. Prepare a tabular analysis of the transactions using the following column headings: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Owner's Capital, Owner's Drawings, Revenues, and Expenses. b. From an analysis of the owner's equity columns, compute the net income or net loss for April. European settlers catalyzed all of the following ecological changes in North America except:
a. A decline in species diversity b. Climatic change c. Air pollution from greenhouse gases
Here is the tabular analysis of the transactions provided: Tabular Analysis Date Transaction No. Cash Accounts Receivable Supplies Equipment Accounts Payable Owner's Capital Owner's Drawings Revenue ExpenseApr-
011$15,000$15,000Apr-02(600)(600)$14,400Apr-03(3,000)(3,000)$11,400Apr-04700$700$12,100Apr-05900$(900)$11,200Apr-06$3,000$7,000$10,000Apr-07(600)(600)$9,400Apr-08(500)$8,900Apr-09(2,500)(2,500)$6,400Apr-10$4,000$10,400.
Total $8,500$7,000$(900)$3,000$500$10,400$2,100$10,000$3,100 From the tabular analysis above, you can see that the net income for April is $3,100.
Therefore, the answer to the second part of the question is: b. Net Income or Net Loss for April is $3,100.
European settlers catalyzed all of the following ecological changes in North America except air pollution from greenhouse gases.
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A true marketing decision support system (dss) possesses all of the following characteristics except
A true marketing decision support system (DSS) possesses all of the following characteristics except that it does not have a defined set of data and analytical tools.
A marketing decision support system (DSS) is a software application or tool that assists marketers in making informed decisions by providing them with relevant data, analysis, and models. It helps marketers gather, analyze, and interpret information to support their marketing strategies and tactics. A true marketing DSS typically possesses the following characteristics:
1. Data Integration: It integrates data from various sources, such as sales data, customer data, market research data, and external data, to provide a comprehensive view of the marketing environment.
2. Analysis Capabilities: It includes analytical tools and techniques to process and analyze the data, such as statistical analysis, data mining, predictive modeling, and simulation.
3. Interactive Interface: It offers an interactive user interface that allows marketers to explore data, perform analysis, and generate insights through visualizations, dashboards, and reports.
4. Decision Support: It provides decision support by generating recommendations, forecasts, and scenarios based on the analysis results. It assists marketers in evaluating alternative strategies and making data-driven decisions.
5. Flexibility and Adaptability: It is designed to be flexible and adaptable to changing marketing needs and requirements. It allows marketers to customize and configure the system to suit their specific needs and preferences.
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Indigo Manufacturing is considering adding a second production line to meet the market demand. In order to add the second production line, Indigo needs to purchase $1.2 million worth of new machinery and spend another $100,000 improvement on its current building. This new production line would produce 200,000 units, with expected sale price of $4.65 and a variable cost of $2.90 respectively for each unit. The required net working capital is $36,000. The fixed cost is $42,000 each year. By adding the second production line, the gross profit from the current production would be reduced by $29,000 each year. The salvage value for the machinery and building improvement would be $390,000 and 80,000 respectively. Indigo uses straight-line depreciation over the life of this project (5 years), its required rate of return is 15% and the tax rate is 34%. The total cash flow in year 5 would be closest to A. $748,885 B. $553,085 C. $582,070 D. $589,085 E. $618,740
Net present value [tex](NPV) = PV1 + PV2 + PV3 + PV4 + PV5NPV = 3,051,383 + 2,651,008 + 2,300,929 + 1,998,257 + 1,748,888 NPV = $11,750,465[/tex]
The total cash flow in year 5 would be closest to $748,885 (Option A)
Therefore, the correct answer is A. $748,885.
Given, The cost of new machinery = $1,200,000Improvement on current building = $100,000
Net working capital = $36,000
Sale price per unit = $4.65
Variable cost per unit = $2.90
Annual fixed cost = $42,000
Gross profit from the current production will be reduced by $29,000 annually.
Salvage value of the machinery = $390,000
Salvage value of the building improvement = $80,000
Indigo uses straight-line depreciation over the life of this project (5 years)
Tax rate = 34%Required rate of return = 15%First, we will calculate the cash inflows.
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Describe different programs of training and development and how
it influence employee performance
Training and development programs help organizations develop and retain talent, resulting in increased employee performance and productivity.
The following are some training and development programs that can influence employee performance:
1. On-the-job training: This type of training happens while an employee is working and gaining experience. This training can involve job rotation, coaching, and mentoring.
2. Classroom training: This type of training can be conducted at the workplace, offsite, or online. It involves lecture-based sessions or interactive training sessions such as case studies, simulations, and role-plays.
3. Cross-functional training: Cross-functional training involves employees from various departments who participate in a shared training program. This training helps employees understand the importance of cooperation and collaboration.
All these training and development programs influence employee performance in the following ways:
- Employees gain new skills and knowledge, which helps them improve their performance and productivity.
- Employees become more motivated and engaged, leading to better job satisfaction.
- Employees feel valued and appreciated, leading to better retention rates.
- Employees learn to adapt to new technologies, processes, and procedures, leading to increased efficiency and effectiveness.
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a. If I purchased a copier machine for the office costing $11,699, what would be the initial entry to record the purchase?
b. What is paramount to the role of Accounting?
c. Accounting standards are designed to enforce ______________ in organizations.
d. When customers don’t pay the amount due, we call that?
e. If I purchased a copier machine for the office costing $11,699, what would be the initial entry to record the purchase?
By using accounting standards, businesses can ensure that financial statements are reliable and accurate. It promotes transparency and increases the confidence of investors and other stakeholders in the organization.
a. When purchasing a copier machine for the office costing $11,699, the initial entry to record the purchase will be to debit the office equipment account for $11,699, and credit cash or accounts payable for $11,699. The office equipment account will be recorded in the balance sheet of the company.
b. The primary function of accounting is to offer a comprehensive overview of the company's financial information. This is necessary for business owners to make informed decisions about the future of their business. The role of accounting is critical in managing a company's financial health and well-being.
c. Accounting standards are designed to enforce consistency in organizations. They offer guidelines that businesses must follow to ensure that they accurately record financial transactions.
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Net profit margin =10%, Assets turover =2. Total assets =$100,000, Total equity =$70,000. Using the DuPont system, find the ROE. Select one: a. 14% b. 20% c. 28.57% d. 1.42 times
The ROE using the DuPont system given the following details is 28.57%. Therefore, the correct is option C) 28.57%.
DuPont system
The DuPont Model is a system of financial analysis that is used to determine the potential return on equity investment (ROE).
The ROE is calculated by multiplying a firm's profit margin, asset turnover, and financial leverage together.
ROE = (Net profit margin × Asset turnover × Financial leverage)
Net profit margin = Net profit margin = (Net profit / Sales revenue) × 100%
Assets turnover = Sales revenue / Total assets
To find ROE using the DuPont system given the following details:
Net profit margin = 10%
Assets turnover = 2
Total assets = $100,000
Total equity = $70,000
ROE = (Net profit margin × Asset turnover × Financial leverage)
Net profit margin = 10%
Assets turnover = 2
Financial leverage = Total assets / Total equity
Financial leverage = $100,000 / $70,000
= 1.43
ROE = (10% × 2 × 1.43)
ROE = 28.57%
Therefore, the correct is option C) 28.57%.
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French Corporation wishes to hire Leslie as a consultant to design a comprehensive staff training program. The project is expected to take one year, and the parties have agreed to a tentative price of $60,000. French Corporation has proposed payment of one-half of the fee now, with the remainder paid in one year when the project is complete. Use Appendix A and Appendix B.
a. If Leslie expects her marginal tax rate to be 24 percent this year and 35 percent next year, calculate the after-tax net present value of this contract to Leslie, using a 6 percent discount rate.
b. French Corporation expects its marginal tax rate to be 21 percent both years. Calculate the net present value of French’s after-tax cost to enter into this contract using a 6 percent discount rate.
c-1. Given that Leslie expects her tax rate to increase next year, she would prefer to receive more of the income from the project up front. Consider an alternative proposal under which French pays Leslie $42,000 this year, and $16,000 in one year when the contract is complete. Calculate the after-tax benefit of this counterproposal to Leslie and the after-tax cost to French.
c-2. Are both parties better off under this alternative than under the original plan?
Providing her with a higher benefit. French Corporation's after-tax net present value also increases from $43,472.96 to $43,048.51, resulting in a lower cost
a. To calculate the after-tax net present value of the contract for Leslie, we need to consider the present value of the cash flows she will receive and apply the appropriate tax rates. The cash flows are $30,000 now and $30,000 in one year. Using a 6 percent discount rate, the present value of these cash flows is calculated as follows:
PV1 = $30,000 / (1 + 0.06) = $28,301.89
PV2 = $30,000 / (1 + 0.06)^2 = $26,744.68
The after-tax net present value for this year is ($28,301.89 - ($28,301.89 * 0.24)) = $21,513.52. For next year, it is ($26,744.68 - ($26,744.68 * 0.35)) = $17,381.35. The total after-tax net present value is the sum of these values:
Total after-tax NPV = $21,513.52 + $17,381.35 = $38,894.87
b. To calculate the net present value of French Corporation's after-tax cost, we consider the present value of the cash outflows, taking into account the tax rate. The cash flows are $30,000 now and $30,000 in one year. Using a 6 percent discount rate, the present value of these cash flows is:
PV1 = $30,000 / (1 + 0.06) = $28,301.89
PV2 = $30,000 / (1 + 0.06)^2 = $26,744.68
The net present value for this year is ($28,301.89 - ($28,301.89 * 0.21)) = $22,367.51. For next year, it is ($26,744.68 - ($26,744.68 * 0.21)) = $21,105.45. The total after-tax net present value is the sum of these values:
Total after-tax NPV = $22,367.51 + $21,105.45 = $43,472.96
c-1. Under the alternative proposal, Leslie would receive $42,000 this year and $16,000 in one year. Calculating the after-tax net present value for Leslie using the same discount rate of 6 percent:
PV1 = $42,000 / (1 + 0.06) = $39,622.64
PV2 = $16,000 / (1 + 0.06)^2 = $14,982.15
The after-tax net present value for this year is ($39,622.64 - ($39,622.64 * 0.24)) = $30,042.22. For next year, it is ($14,982.15 - ($14,982.15 * 0.35)) = $9,739.79. The total after-tax net present value is the sum of these values:
Total after-tax NPV = $30,042.22 + $9,739.79 = $39,782.01
The after-tax cost to French Corporation under this counterproposal can be calculated using the same discount rate:
PV1 = $42,000 / (1 + 0.06) = $39,622.64
PV2 = $16,000 / (1 + 0.06)^2 = $14,982.15
The after-tax net present value for this year is ($39,622.64 - ($39,622.64 * 0.21))
= $31,232.25. For next year, it is ($14,982.15 - ($14,982.15 * 0.21)) = $11,816.26. The total after-tax net present value is the sum of these values:
Total after-tax NPV = $31,232.25 + $11,816.26 = $43,048.51
c-2. Both parties are better off under the alternative proposal than under the original plan. Leslie's after-tax net present value increases from $38,894.87 to $39,782.01, providing her with a higher benefit. French Corporation's after-tax net present value also increases from $43,472.96 to $43,048.51, resulting in a lower cost. Therefore, the alternative proposal benefits both parties by providing a more favorable after-tax outcome.
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Personal selling is important especially in the context of small businesses a- What are the attributes of a creative salesperson? b- What is prospecting?
The required answer to this question is a) Attributes of a creative salesperson:
Strong Communication Skills:
1) A creative salesperson must possess excellent verbal and written communication skills. They should be able to convey their ideas and value propositions effectively to potential customers.
2) Problem-Solving Skills:
Creative salespeople are adept at identifying customer pain points and providing innovative solutions. They can think outside the box and tailor their approach to meet the specific needs of each prospect.
3) Adaptability:
The ability to adapt to changing circumstances and adjust sales strategies accordingly is crucial for a creative salesperson. They should be open to new ideas and willing to experiment with different approaches to achieve better results.
4) Active Listening:
Creative salespeople listen attentively to their prospects and try to understand their unique requirements. By actively listening, they can gather valuable insights and use them to tailor their sales pitch effectively.
5) Persistence:
Creative salespeople understand that rejection is a part of the sales process. They remain persistent in their efforts and have the resilience to overcome obstacles and setbacks. They view challenges as opportunities to find innovative solutions.
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Suppose the monetary policy curve is given by r=1.5%+0.75π, and the IS curve is Y=13−100r. a. Calculate an expression for the aggregate demand curve. b. Calculate aggregate output when the inflation rate is 2%,3%, and 4%. c. Draw graphs of the IS, MP, and AD curves, labeling the points in the appropriate graphs from part (b) above
a) We know that AD= C + I + G + (X-M)
where, C= Consumption
I= Investment
G= Government expenditure
X-M= Net exports
Also, C=C0 + c(Y-T)
where, C0= Autonomous Consumption
c= Marginal Propensity to Consume
m= Autonomous imports (Assuming net exports = 0)
M = m(Y-T)
Here, M is imports and m is marginal propensity to imports.
T= Taxes
So, AD = C0 + c(Y-T) + I + G (assuming X-M=0)
Now, Y=C0 + c(Y-T) + I + GY-cY + cT= C0 + I + G -cT => Y= (C0+I+G)/ (1-c) = AD
Now, C0= 10, I= 2, G= 5, T= 4 and c= 0.75Y = (10+2+5)/(1-0.75)
Y= 34
Aggregate demand curve is Y= 4 + 0.25Yb) We are given that,
MP curve: r= 1.5%+ 0.75π => π= (r-1.5%)/ 0.75 => π= (r-0.015)/ 0.0075IS curve: Y= 13- 100rWe need to find aggregate output, Y when inflation rate is 2%, 3% and 4%For π=2%, r= 0.29% => Y= 13- (100*0.29%)= 10.71For π=3%, r= 0.54% => Y= 13- (100*0.54%)= 10.46For π=4%, r= 0.79% => Y= 13- (100*0.79%)= 10.21c)
The three curves are drawn in the graph below:
Graph of the IS, MP, and AD curves. IS curve, MP curve, and AD curve are shown on the same graph.
Intersection of the AD curve with IS and MP curve gives the desired values for the aggregate output for 2%, 3% and 4% inflation rate.
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