Answer:
Como podemos definir la Maquila.
Una maquila es una empresa manufacturera que importa materia prima sin aranceles de un país determinado, la transforma en producto terminado, y luego vende ese producto terminado en el país de donde importó la materia prima en primer lugar.
Frente a la competencia en el mercado, cuales son los objetivos que persiguen las empresas multinacionales con la creación del sistema de maquilas en la producción de bienes?
Las multinacionales persiguen abaratar costos con las maquilas. En un entorno competitivo, tener unos costos de producción más bajos es una de las mejores estrategias corporativas ya que esto genera precios más bajos.
Por qué la maquila se convierte en un factor que favorece la capacidad de competencia de las empresas multinacionales en el mercado.
Porque les permite producir bienes a precios más bajos.
Qué ventajas brinda el fenómeno maquilador a los consumidores finales de los bienes.
Los consumidores se benefician de poder comprar productos más baratos, lo que significa que su ingreso rinde más.
Cuales empresas salen perjudicadas en el mercado municipal, por la competencia de la maquila controlada por las multinacionales y las familias ricas de la economía nacional y Por Qué.
Las empresas que salen perjudicadas son aquellas que no pueden competir con los bajos costos y las economías de escala de las compañías multinacionales que tienen maquilas, y que por ésta razón, terminan ofreciendo productos más costosos, lo que repercute de forma negativa en su nivel de ventas.
Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon.
Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.
Statement Price Control Binding or Not
The government prohibits gas stations from selling gasoline for more than $2.50 per gallon.
The government has instituted a legal minimum price of $3.40 per gallon for gasoline.
There are many teenagers who would like to work at gas stations, but they are not hired due to minimum-wage laws.
Answer:
Price ceiling binding
price floor binding
Price floor binding
Explanation:
A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
The maximum price ($2.50) is less than the equilibrium price($3) . So it is a binding price ceiling
The minimum price ($3.40) is greater than the equilibrium price($3) . So it is a binding price floor
Roose, Inc. reported revenue of $92 million and incurred total expenses of $84 million. The total expenses included cost of goods sold of $50 million, salaries and other administrative expenses of $9 million, $11 million of interest paid on a building's mortgage, and $14 million of depreciation. Assuming Roose is subject to the interest expense limitation, what amount of interest expense can the business deduct in the current year
Answer:
Roose, Inc.
The business can deduct $9.5 million in the current year.
Explanation:
Revenue = $92 million
Expenses allowed = 73 million ( $84 - $11 million for interest expense)
Adjusted taxable income before interest = $19 million
50% of adjusted taxable income = $9.5 million
Disallowed interest expense in the current year = $1.5 million
The interest expense allowed (deductible) is 50% for 2019 and 2020, as amended by the CARES Act) of the taxpayer's adjusted taxable income.
The following transactions occurred at the Daisy King Ice Cream Company.
1. Started business by issuing 10,000 shares of capital stock for $23,000.
2. Signed a franchise agreement to pay royalties of 5% of sales.
3. Leased a building for three years at $530 per month and paid six months' rent in advance.
4. Purchased equipment for $5,700, paying $2,000 down and signing a two-year, 10% note for the balance.
5. Purchased $2,100 of supplies on account.
6. Recorded cash sales of $1,100 for the first week.
7. Paid weekly salaries and wages, $470.
8. Paid for supplies purchased in item (5).
9. Paid royalties due on first week's sales.
10. Recorded depreciation on equipment, $70.
Required:
Prepare journal entries to record each of the transactions listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Journal Entries Needed as followed:
1. Started business by issuing 10,000 shares if capitol stock for $23,000
2. Signed a franchise agreement to pay royalties of 5% of sales
3. Leased a building for 3yrs st $530 per month and paid 6 months rent in advance
4. Purchased equipment for $5700, paying $2000 down and signing a 2yr 10% note for the balance.
5. Purchased $2100 of supplies on account
6. Recorded cash sales of $1100 for the 1st week
7. Paid weekly salareies and wages $4700
8. Paid for suplies purchased in item (5)
9. Paid royalites due on 1st weeks sales
10. Recorded depreciation on equipment $70
Answer:
Daisy King Ice Cream Company
General Journal
1. Debit Cash Account $23,000
Credit Capital Stock $23,000
To record the issue of 10,000 shares for cash.
2. No journal entry required.
3. Debit Prepaid Rent $3,180
Credit Cash Account $3,180
To record the payment in advance of six months' rent.
4. Debit Equipment $5,700
Credit Cash $2,000
Credit Notes Payable $3,700
To record the purchase of equipment for cash and 10% two-year notes.
5. Debit Supplies $2,100
Credit Accounts Payable $2,1000
To record the purchase of supplies on account.
6. Debit Cash Account $1,100
Credit Sales Revenue $1,100
To record the sale of goods for cash.
Debit Royalties Expense $55
Credit Royalties Payable $55
To record 5% royalties payable on sales.
7. Debit Salaries and Wages Expense $470
Credit Cash Account $470
To record the payment of weekly salaries and wages.
8. Debit Accounts Payable $2,100
Credit Cash Account $2,100
To record the payment for supplies purchase on account.
9. Debit Royalties Payable $55
Credit Cash Account $55
To record the payment of royalties due.
10. Debit Depreciation Expense $70
Credit Accumulated Depreciation $70
To record the depreciation expense for the period.
Explanation:
For Daisy King Ice Cream Company, the recording of business transactions in the journal is the first step of maintaining the double-entry system of book-keeping. In it, the accounts to be debited and credited are identified and recorded for onward posting to the general ledger.
Follows a summary of Gold Corp.'s cash flows ($ in millions) for the year ended Dec. 31, 2020: Cash received from: Customers $ 3,150 Interest on investments 290 Sale of land 190 Sale of Rowdy's common stock 780 Issuance of debt securities 2,900 Cash paid for: Interest on debt $ 390 Income tax 170 Debt principal reduction 2,400 Purchase of equipment 5,800 Purchase of inventory 1,900 Dividends on common stock 470 Operating expenses 680 Gold Corp would report net cash inflows (outflows) from investing activities for the period of:
Answer:
Only two of the listed activities classify as investing activities. The cash flow form investing activities = cash received form the sale of land + cash paid for the purchase of equipment = $190 - $5,800 = -$5,610
Explanation:
Customers $ 3,150 ⇒ operating activity
Interest on investments 290 ⇒ operating activity
Sale of land 190 ⇒ investing activity
Sale of Rowdy's common stock 780 ⇒ financing activity
Issuance of debt securities 2,900 ⇒ financing activity
Interest on debt $ 390 ⇒ operating activity
Income tax 170 ⇒ operating activity
Debt principal reduction 2,400 ⇒ financing activity
Purchase of equipment 5,800 ⇒ investing activity
Purchase of inventory 1,900 ⇒ operating activity
Dividends on common stock 470 ⇒ financing activity
Operating expenses 680 ⇒ operating activity
is the price of a movie ticket likely to go up or down why?
Answer:
Down
Explanation:
Because they want more people to watch
g Question 3 (ASC Required - 20 points): After graduation, you work for a few years at a major accounting firm and advance to Senior. However, as part of this role, you start working on a client that is different from your other background: specifically, a major bank located in San Francisco. This bank primarily takes deposits from retail and business customers and lends money out to others. The accounting seems to be completely different from what you are used to and so you go to the Codification to find out what the accounting standards for this industry consist of. Describe the major classes of transactions undertaken by this sort of entity and how they should be accounted for.
Answer with Explanation:
The major transactions that a bank will be involved in are listed below:
Deposits of accounts holders: These deposits are basically the liability of the bank which it will pay them back in near future. Hence it must be recorded as a Current or Non-current liability depending upon the type of account and agreement between the parties to contract. Money lendings to borrowers: This money must be accounted for as a current or non-current asset depending upon the type of account and agreement made.Interest on the money lendings: It is interest income and must be accounted for as revenue.ATM and other Transaction processing charges: These fee charges are also part of income and thus must be accounted for as income.All against Common Sense. Back in mid 80s, the US economy was very bad. It was much worse than it is now. At that time, to the surprise of many people, US automakers raised the prices of their cars. The common sense says that when the sales are slow, we lower prices and offer better deals to customers. Why do you think that the US car manufacturers increase the prices?
Answer:
Explanation:
This most likely happened because in the 80's the economy was so bad that even by lowering their prices the middle-class families would still not be able to afford to buy a car. The only individuals able to afford a car would be those who are wealthy. Therefore, by increasing prices and targetting wealthy individuals, the US car manufacturers could become profitable with much fewer sales and prevent the manufacturing plant from going under. Since wealthy individuals would not mind much the increased prices because they can still afford it without making much of a dent in their wealth.
a. Why do some price controls help create black markets?
b. What is a black market you have personally seen?
Answer:
Price ceiling creates black markets
Price ceiling is when the government or an agency of the government sets the maximum price of a good or service. Price ceiling is binding if it is set below equilibrium price.
When a binding price floor is established, producers would earn less profits and as a result they would stop selling their products in the free markets. This would lead to scarcity and a result a black market can emerge. Goods would be sold at a higher price in the black markets than it would in the free markets.
So, black markets can arise as a result of price ceiling and the need of producers to earn higher profits
b. During the war, when there was a rationing of meat. Farmers declared less animal births to authorities and sold the undeclared livestock in the black market.
Also, in less developed countries e.g. Nigeria, when there is scarcity of fuel. Black markets arise where fuel are sold for higher prices
Explanation:
Suppose that real GDP grew more in Country A than in Country B last year.
a. Country A must have a higher standard of living than country B.
b. Country A's worker productivity must have grown faster than country B's.
c. Both of the above are correct.
d. None of the above are correct.
Answer:
D
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
Nominal GDP is GDP calculated using current year prices while Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.
The standard of living is calculated as real GDP / population. Even though the real GDP of country A grew faster than country B, country A's population might be higher than country B's making its standard of living lower.
To make a conclusion that the growth of country A's worker productivity grew faster, it must be assumed that population grew at the same rate in both countries
Retepson, Inc. has been in business for over 50 years. Retepson is best known for its Guide to Colleges line of books designed for high school students seeking admission to undergraduate programs. Basic information about a program is included in the books at no charge to the colleges, but colleges may purchase additional advertising space in the books for a fee. Traditionally, Retepson has made money by selling advertising in its books and by charging students for the books themselves. Recently, however, profits are down, and the company is considering whether it needs to change its corporate culture. Which of the following, if true, supports the conclusion that Retepson's culture should emphasize innovation?
a) Anyone with Internet access can find any of the information included in the Guide to Colleges series.
b) At the time that Retepson was founded, there was no easy way for students to find out basic information about a wide range of undergraduate programs.
c) Most large colleges have found that the wide circulation of the Guide to Colleges line of books makes it worthwhile to purchase additional advertising space.
d) Retepson's sales force has been able to prevent imitators from duplicating its success.
e) Students seeking admission to selective colleges often adopt innovative approaches to their application essays in order to stand out from the group of applicants.
Answer:
a) Anyone with Internet access can find any of the information included in the Guide to Colleges series.
Explanation:
when we say innovation what we mean is a new idea, a new method, or a new way of doing things.
option A is the answer because using the internet to search for information is a form of innovation that has would bring about immense amount of changes from the former way of doing things. the internet itself is an innovative medium and it serves different purposes.
if anyone with internet can easily access information, then such an innovative ideas should be emphasized
Waterway Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 21% of sales. The income statement for the year ending December 31, 2020, is as follows.
WATERWAY BEAUTY CORPORATION
Income Statement For the Year Ended December 31, 2020
Sales $79,000,000
Cost of goods sold
Variable $32,390,000
Fixed 8,750,000 41,140,000
Gross margin $37,860,000
Selling and marketing expenses
Commissions $16,590,000
Fixed costs 10,607,200 27,197,200
Operating income $10,662,800
The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 9% and incur additional fixed costs of $9,480,000.
Under the current policy of using a network of sales agents, calculate the Bonita Beauty Corporation's break-even point in sales dollars for the year 2017. (Round intermediate calculations to 2 decimal places e.g. 10.25 and final answers to 0 decimal places, e.g 2,510.)
Break-even point: $ _ _ _ _ _ _
Answer:
$50,940,000
Explanation:
Calculate the Bonita Beauty Corporation's break even point in sales dollars for the year 2017.
Please see as attached, detailed solution to the above question.
Rust Pipe Co. was established in 1994. Four years later the company went public. At that time, Robert Rust, the original owner, decided to establish two classes of stock. The first represents Class A founders' stock and is entitled to twelve votes per share. The normally traded common stock, designated as Class B, is entitled to one vote per share. In late 2010, Mr. Stone, an investor, was considering purchasing shares in Rust Pipe Co. While he knew the existence of founders’ shares were not often present in other companies, he decided to buy the shares anyway because of a new technology Rust Pipe had developed to improve the flow of liquids through pipes. Of the 1,900,000 total shares currently outstanding, the original founder's family owns 52,725 shares. What is the percentage of the founder's family votes to Class B votes? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Answer:
34.25%
Explanation:
Votes per share = 12
Shares owned = 52725
Now we are to calculate the total value of the total number of of votes
Total votes = votes per share * shares owned
= 12*52725
Total = 632700
Value of votes of class B
Total shares outstanding - founders family shares
= 1900000 - 52725
= 1847275
The question requires us to calculate percentage of the founder's family votes to Class B votes
632700/1847275
= 0.3425
= 34.25%
Jen Rogers withdrew a total of $15,000 from her business during the current year. The entry needed to close the withdrawals account is:_________
A. Debit Income Summary and credit Cash for $31,000.
B. Debit Jen Rogers, Withdrawals and credit Cash for $31,000 Debit Income Summary and credit Jen Rogers, Withdrawals for $31,000.
C. Debit Jen Rogers, Capital and credit Jen Rogers, Withdrawals for $31,000.
D. Debit Jen Rogers, Withdrawals and credit Jen Rogers, Capital for $31,000.
Answer: C. Debit Jen Rogers, Capital and credit Jen Rogers, Withdrawals for $15,000
Explanation:
The options do not match the question. Correct answer is posted.
When closing the Withdrawal account at the end of the period, the withdrawals need to be accounted for from the capital invested by the investor because the withdrawals would reduce the capital balance.
To do this the Capital account should be debited to signify that it is reducing. The opposing entry therefore will be to credit the Withdrawals account.
Receivables are valued based on their ________.
a. fair value
b. estimated amount collectible
c. lower-of-cost-or-market value
d. historical cost
Answer:
b. estimated amount collectible
Explanation:
In Financial accounting, Receivables are also known as Account Receivable. Receivables are considered to be a current asset because it is the payment a business firm would receive from its customers for goods purchased or services taken on credit. Also, accounts receivable are recorded in the current assets section of the balance sheet because they add value to a business firm.
Generally, current assets are considered to be liquid because they are listed on the balance sheet in the order (descending) in which they are expected to turn or be converted to cash within a relatively short term period.
Hence, receivables are valued based on their estimated amount collectible from customers for the goods and services taken.
Which of the following statements would be most likely to minimize expected fixing costs? a. A machine should always be calibrated at the midpoint between the upper and lower spec limits. b. A machine should be calibrated closer to the upper spec limit than the lower spec limit if the cost of fixing output that is too high is greater than the cost of fixing output that is too low. c. A machine should be calibrated closer to the lower spec limit than the upper spec limit if the cost of fixing output that is too high is greater than the cost of fixing output that is too low.
Answer: c. A machine should be calibrated closer to the lower spec limit than the upper spec limit if the cost of fixing output that is too high is greater than the cost of fixing output that is too low.
Explanation:
If the cost of fixing output that is too high is greater than the cost of fixing output that is too low then it make sense to calibrate the machine closer to the lower spec limit.
This way if the machine produces less output than is required, it can be fixed at a lower cost than if the machine had been set to the upper spec and produces output that is too high.
Ramon had AGI of $165,000 in 2020. He is considering making a charitable contribution this year to the American Heart Association, a qualified charitable organization. Determine the current allowable charitable contribution deduction in each of the following independent situations, and indicate the treatment for any amount that is not deductible currently. Identify any planning ideas to minimize Ramon's tax liability.
Answer:
the situations are missing, so I looked for similar questions:
a. A cash gift of $68,500.
In the current year, Ramon may deduct $68,500 since his charitable contribution is limited to $165,000.
b. A gift of OakCo stock worth $68,500 on the contribution date. Ramon had acquired the stock as an investment two years ago at a cost of $61,650.
The stock's value for determining the contribution is $68,500 (fair market value). The deduction for 2020 is $49,500 (30% of AGI). The remaining $19,000 for years.
c. A gift of a painting worth $68,500 that Ramon purchased three years ago for $61,650. The charity has indicated that it would sell the painting to generate cash to fund medical research.
The contribution is valued at $61,650 (the charity will sell the painting immediately). The amount deductible in the current year is $61,650.
Explanation:
The charitable contribution limit was increased to 100% of AGI for 2020 by the CARES Act (Coronavirus Aid, Relief, and Economic Security Act).
Companies, the military, the government, and nonprofit organizations can operate because they have determined the levels of authority and reporting structure for their organizations. What is the name given to this line of authority
Answer:
Chain of command.
Explanation:
Chain of command is been used in the description of operation flow pattern in companies, government, universities and in many organisations which aid in a better reporting relationship. This report is said to set records straight and also puts every individual in a category in this chart organization. Also a chain of command is established so that everyone knows whom they should report to and what responsibilities are expected at their level. A chain of command enforces responsibility and accountability.
At a sales volume of 44,000 units, Thoma Corporation's sales commissions (a cost that is variable with respect to sales volume) total $585,200. To the nearest whole cent, what should be the total sales commission per unit at a sales volume of 46,300 units
Answer: $13.30 per unit
Explanation:
Thoma Corporation Sales Commission per unit;
= Total Sales commission/ Sales volume
= 585,200/44,000
= $13.30
For a sales volume of 46,300 units, the commission per unit will be the same $13.30 per unit as this cost is variable with respect to sales volume.
Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming year as follows: Sales $ 44,000,000 Operating expenses: Variable expenses $ 28,600,000 Fixed expenses 7,700,000 Total expenses 36,300,000 Operating profit $ 7,700,000 Required: 1. Determine the breakeven point in sales dollars. 2. Determine the required sales in dollars to earn a before-tax profit of $9,152,500. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) 3. What is the breakeven point in sales dollars if the variable expenses increases by 9%
Answer:
Please see attached
Explanation:
• Break even point in sales dollars $22,000,000
• Required sales in dollars $48,150,000
• Break even point in sales dollars $34,010,600
See as attached, detailed solution to the questions above.
Answer:
Results are below.
Explanation:
Giving the following information:
Sales $44,000,000
Variable expenses $ 28,600,000
Fixed expenses 7,700,000
To calculate the break-even point in dollars, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 7,700,000 / [(44,000,000 - 28,600,000)/44,000,000]
Break-even point (dollars)= $22,000,000
Now, we incorporate the desired profit of $9,152,500
Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio
Break-even point (dollars)= (7,700,000 + 9,152,500) /0.35
Break-even point (dollars)= $48,150,000
Finally, the new break-even point in dollars:
Total variable cost= 28,600,000*1.09= 31,174,000
Break-even point (dollars)= 7,700,000 / [(44,000,000 - 31,174,000) / 44,000,000]
Break-even point (dollars)= 7,700,000 / 0.2915
Break-even point (dollars)= $26,415,094.34
A share of Lash Inc.'s common stock just paid a dividend of $2.10. If the expected long-run growth rate for this stock is 5%, and if investors' required rate of return is 18.5%, what is the stock price
Answer:
P0 = $16.333333333 rounded off to $16.33
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 * (1+g) is dividend expected for the next period g is the growth rate r is the required rate of return
P0 = 2.1 * (1+0.05) / (0.185 - 0.05)
P0 = $16.333333333 rounded off to $16.33
Carolyn is looking over opinions based primarily on research studies. She has found that there are 31 of them in total. What organization is Carolyn researching?
Answer:
d. APB
Explanation:
Carolyn is looking over published accounting opinions based primarily on research studies. What organization is Carolyn researching?
These are the options for the question
a. CAP
b. AICPA
c. SEC
d. APB
We are informed Carolyn who is looking over published accounting opinions based primarily on research studies. The organization Carolyn researching is Accounting Principle Board.
APB( Accounting Principle Board) belongs to a body of American institute of Certified public accountant in US.
it was been run and organised by American Institute of Public Accountants. APB can be regarded as organization which is a forerunner of
Financial Accounting Standards Board. This APB usually offer discounts on professional training with them as well insurance on journal subscription to their member. They are good in offering research on Accounting and finance.
Park competes with World by providing a variety of rides. sells tickets at $110 per person as a one-day entrance fee. Variable costs are $44 per person, and fixed costs $412,500 are per month. Under these conditions, the breakeven point in tickets is 6,250 and the breakeven point in sales dollars is $687,500.
Requirement
1. Suppose Park cuts its ticket price from to to increase the number of tickets sold. Compute the new breakeven point in tickets and in sales dollars. 2. Begin by selecting the formula labels and then entering the amounts to compute the number of tickets must sell to break even under this scenario
Answer:
Instructions are below.
Explanation:
Giving the following information:
Variable costs are $44 per person
Fixed costs $412,500
Let's suppose that the new selling price is $100.
To calculate the break-even point in units and dollars, we need to use the following formulas:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 412,500 / (100 - 44)
Break-even point in units= 7,366 units
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 412,500 / (56/100)
Break-even point (dollars)= $736,607
How are productive resources
allocated among people and
businesses in the United States?
Answer:
see below
Explanation:
America is a good example of a free-market economy. In this type of market, productive resources are allocated through the interaction of a willing buyer and a willing seller. In a market economy, Mutual beneficial exchange of resources through trade is relied upon to solve economic problems. An Individual's self-interest is viewed as a benefit to society.
In a free-market economy like in America, purchasing power determines who owns resources. Resource owners are motivated by profits and other self-interest to engage in production. The forces of supply and demand control activities in a Free Market. Consumers decide what will be produced. In market economies, operation and acquisition of resources is by the freely and self-directed interaction between consumers and producers.
At what percentage of credit card usage, does it start affecting your score in a negative way?
Answer:
3%
Explanation:
ratio of 80 or 90 percent or more highly negative impact on your credit score.
Situation 2
A customer walks into your department and asks if anyone can help her. She complains that she's
been waiting for the salesperson in the shoe department for the last 10 minutes. She says, "Just
when I think he's finally going to help me, he takes another phone call. I'm so upset. I just want to
tell his manager how rude he's been."
Policy: Employees should try to handle all customer complaints. If the customer demands to see a
manager, call the departmental manager immediately.
19
sty
Answer:
The lady would need to remain patience and make note of the fact that there may be a crowd and not enough employees so it may take a while. Yes the lady has a right to assistance but she should only be given it if she is being respectful of the people around her and nice to the employees.
Not sure what you wanted me to answer but I hope this helps.
Explanation:
A perpetuity pays $170 per year and interest rates are 8.2 percent. How much would its value change if interest rates increased to 9.7 percent
Answer:
$320.59 decrease
Explanation:
The computation of the change in the value is shown below:
As we know that
The Value of perpetuity is
= Annual inflows ÷ interest rate
Current value is
= $170 ÷ 0.082
= $2,073.17
And,
New value is
= $170 ÷ 0.097
= $1,752.58
Now change in value is
= $2,073.17 - $1,752.58
= $320.59 decrease
We simply applied the above formula
The process of taking cash flow that is received or paid in the future and stating that cash flow in present value terms is called discounting. A. True B. False
Answer:
A. True
Explanation:
The process of taking cash flow that is received or paid in the future and stating that cash flow in present value terms is called discounting.
Discounting is the opposite of Compounding because discounting measures what the value of future cash flow is worth in the present while compounding takes the present value into the future. Discounting generally points to a method of knowing the present value of cash flow. Discounting is an important tool due to how a business could know the present value of what the business spends and gains by comparing it to the future value of what is to be received.
The cash flow that is received or paid in the future is less than the present value of the cash flow and that depicts the time value of money.
he Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 11,900 10,900 12,900 13,900 Each unit requires 0.20 direct labor-hours and direct laborers are paid $15.00 per hour. In addition, the variable manufacturing overhead rate is $1.50 per direct labor-hour. The fixed manufacturing overhead is $99,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $39,000 per quarter. Required: 1. Calculate the company’s total estimated direct labor cost for each quarter of the the upcoming fiscal year and for the year as a whole. 2&3. Calculate the company’s total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal year and for the year as a whole.
Answer:
1. Total estimated direct labor cost = $148,800
2. Total estimated manufacturing overhead cost = $410,880
3. Total Cash disbursement for the fiscal year = $254,880
Explanation:
Please see attached detailed explanation of the above questions and answers.
A U.S. business sells milk to consumers in France. Which situation would
most likely cause demand for milk to decline in France?
A. A popular French nutrition author claims that milk is bad for
people's health.
B. French consumers expect the price for milk to increase in the
future.
C. Cheese and other products made from milk become more popular
in France
D. The French population grows steadily due to years of economic
prosperity
The situation that cause the demand for falling in france should be option A. A popular French nutrition author claims that milk is bad for people's health.
The reason why it cause demand for milk:
The various consumers believes on expert's suggestion to select between products. Marketers know this, and that is why they incorporate doctors and other professionals in advertisements. Should the popular nutrition author provides a negative opinion on milk products, the demand for milk in France will decline.
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Answer:
A
Explanation:
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A project that will last for 10 years is expected to have equal annual cash flows of $103,900. If the required return is 8.4 percent, what maximum initial investment would make the project acceptable? Multiple Choice $638,392.96 $595,833.43 $1,534,047.75 $655,213.49 $684,772.10
Answer:
PV= $684,772.1
Explanation:
Giving the following information:
A project that will last for 10 years is expected to have equal annual cash flows of $103,900. If the required return is 8.4 percent.
First, we need to calculate the future value of the cash flows:
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {103,900*[(1.084^10) - 1]} / 0.084
FV= $1,534,047.75
Now, we can determine the present value:
PV= FV/(1+i)^n
PV= 1,534,047.75 / (1.084^10)
PV= $684,772.1