The answer is , the gross profit for the store was 38.3%.
How to find?Selected data for Nancy's store appear below:
Gross profit = $1,341,000
Sales = $3,500,000
Beginning inventory = $140,000
Accounts receivable = $280,000
Ending inventory = $155,000
Accounts receivable, net = $210,000
(a) Compute gross profit rate for 2020.
Gross profit rate = Gross Profit / Net Sales
Gross profit = Net Sales - Cost of Goods Sold
= $3,500,000 - ($3,500,000 - $1,341,000)
= $1,341,000
Gross profit rate = $1,341,000 / $3,500,000
= 0.383 or 38.3%(
b) Compute the inventory turnover for 2020.
Inventory turnover = Cost of Goods Sold / Average Inventory
Average Inventory = (Beginning Inventory + Ending Inventory) / 2
Cost of Goods Sold = Net Sales - Gross Profit
Cost of Goods Sold = $3,500,000 - $1,341,000
= $2,159,000
Average Inventory = ($140,000 + $155,000) / 2
= $147,500
Inventory turnover = $2,159,000 / $147,500
= 14.65 times (rounded to two decimal places)
(c) Compute accounts receivable turnover for 2020.
Accounts Receivable Turnover = Net Credit Sales / Average Accounts Receivable
Average Accounts Receivable = (Beginning Accounts Receivable + Ending Accounts Receivable) / 2
Net Credit Sales = Total Sales - Cash Sales
= $3,500,000 - $2,800,000
= $700,000
Average Accounts Receivable = ($280,000 + $210,000) / 2
= $245,000
Accounts Receivable Turnover = $700,000 / $245,000
= 2.86 times (rounded to two decimal places)
Selected comparative statement data for Shefficid Products Company are presented below:
Shefficid Products CompanyRatio2020
Accounts receivable turnover times
4.9
Inventory turnover times
52.7
Comparing the above ratios for 2020:Nancy's Store Accounts Receivable Turnover Ratio = 2.86
Shefficid Products Company Accounts Receivable Turnover Ratio = 4.9
Nancy's Store Inventory Turnover Ratio = 14.65
Shefficid Products Company Inventory Turnover Ratio = 52.7
Therefore, these ratios indicate that Shefficid Products Company has higher Accounts Receivable Turnover Ratio and Inventory Turnover Ratio than Nancy's Store.
To know moe on Inventory visit:
https://brainly.com/question/31146932
#SPJ11
a. Whit would Rockis profit margin be if the Lime division were dropped? b. What would Rock's profit margin be if the Nina division were dropped?
a. The profit margin is the amount by which revenue from sales exceeds costs of goods sold or production. It is usually expressed as a percentage of sales. Rock Company has two divisions, Lime and Nina. If Lime division is dropped, it would result in a decrease in both revenue and expenses.
The costs associated with Lime division, including the cost of goods sold, direct labor costs, and direct materials costs would all decrease, while sales revenue would also decrease. However, the decrease in expenses would be greater than the decrease in revenue, as the Lime division was operating at a loss. Thus, the profit margin would increase if Lime division were dropped.b. Similarly, if the Nina division were dropped, it would also result in a decrease in both revenue and expenses.
It is important to note that dropping a division may have other impacts beyond the changes in revenue and expenses. It may also affect the overall business strategy and future growth potential of the company. Therefore, the decision to drop a division should be carefully considered based on a variety of factors, not just the impact on profit margin.
To know more about revenue visit:
https://brainly.com/question/27325673
#SPJ11
1. what is ricardian equivalence? give at least three reasons ricardian equivalence might not correctly describe an economy.
Ricardian equivalence is an economic theory that suggests that changes in government borrowing and taxation will not have an effect on the economy because individuals will adjust their behavior in anticipation of future tax liabilities.
However, there are several reasons why Ricardian equivalence might not correctly describe an economy:Imperfect information: The theory assumes that individuals have perfect information about future tax liabilities. In reality, individuals may not have complete knowledge of future tax changes or may have different interpretations of the information they receive. This can lead to inaccurate expectations and behavior that does not align with Ricardian equivalence.
Time inconsistency: The theory assumes that individuals have a consistent preference for saving over time. However, people's preferences and behaviors can change over time due to various factors such as income fluctuations, changes in financial circumstances, or changes in economic conditions. This time inconsistency can lead to a deviation from Ricardian equivalence.
To know more about anticipation visit:
https://brainly.com/question/28269093
#SPJ11
Uncertain Future Cash Flows Lukow Products is investigating the purchase of a piece of automated equipment that will save $400,000 each year in direct labor and inventory carrying costs. This equipment costs $2,500,000 and is expected to have a 15-year useful life with no salvage value. The company’s required rate of return is 20% on all equipment purchases. Management anticipates that this equipment will provide intangible benefits such as greater flexibility and higher-quality output that will result in additional future cash inflows. Required: 1. What is the net present value of the piece of equipment before considering its intangible benefits? 2. What minimum dollar value per year must be provided by the equipment’s intangible benefits to justify the $2,500,000 investment?
To calculate the NPV, we need to find the present value of the annual savings. The annual savings is $400,000, and the required rate of return is 20%. Using the formula for calculating the present value of an annuity, we can find the present value factor for a 20% required rate of return and 15 years.
The present value factor can be found in financial tables or calculated using financial software. The net present value (NPV) of the piece of equipment before considering its intangible benefits can be calculated by discounting the annual cash savings over the 15-year useful life at the company's required rate of return.
Once we have the present value factor, we multiply it by the annual savings to find the present value of the cash savings each year. Finally, we subtract the initial cost of the equipment ($2,500,000) from the total present value of the cash savings to find the net present value. To justify the $2,500,000 investment, the equipment's intangible benefits must provide a minimum dollar value per year that compensates for the initial cost of the equipment.
To know more about intangible visit:
https://brainly.com/question/31862203
#SPJ11
Rhys Carter would like to invest some money into a new business venture. To invest in this business, he will need to cough up R115000 by the end of the week. Unfortunately, he does not have R115000 available for investment, so will need to get a loan for the investment. Luckily, Bank of Dad has agreed to give him an interest-free loan provided he starts sleeping through the night and stops keeping his dad up all night. Before giving this loan, Rhys' dad would like to discuss the feasibility of the investment. Once invested in the business, Rhys expects to receive a payment of R30000 yearly for the next 5 years (at the end of each year). a) Calculate the value of Rhys' future income stream in the current period if the current interest rate in the economy is 10%. [4] b) Given the loan size, should Rhys take advantage of the investment opportunity? [2] c) Now suppose the interest rate in the economy changes to 8%. Would this have an impact on his investment decision? [4] Question 2 (20 Marks) Stella's endowment for the current period is R100000, and she expects to receive R140000 in the next period. If she can invest her money and borrow from the bank at an interest rate of 10%, answer the following questions. a) What is the most she can consume in the current period? [2] b) What is the most she can consume in the next period? [2] c) Graph her feasibility frontier for the set interest rate. [5] d) If she would like to smooth her consumption perfectly across both periods, how much can she consume in each period? e) Suppose the economy in which Stella lives is currently facing excess demand-deficient unemployment. The reserve bank approaches you for advice on what they could do to combat this issue. With your knowledge of unit 10 of the Core textbook, what would you recommend they do to stimulate employment? [2] f) Graph the impact of this change on Stella's feasibility frontier
The value of Rhys' future income stream in the current period if the current interest rate in the economy is 10% can be calculated using the formula of present value of an annuity.
the payment is an annuity since it is received at the end of each year for 5 years.
Present Value = Payment × (1 - 1/(1+r)n) / r Present Value
= 30000 × (1 - 1/(1+0.10)5) / 0.10
= R 115,223.18
The loan size Rhys received from his dad is R 115,000. Since Rhys is receiving R 115,223.18 from the business, it would be profitable to take advantage of this investment opportunity and take the loan size.
If the interest rate in the economy changes to 8%, the present value of the income stream would change since it is inversely proportional to the interest rate.
Present Value = Payment × (1 - 1/(1+r)n) / r Present Value = 30000 × (1 - 1/(1+0.08)5) / 0.08= R 130,128.02
As we can see, the present value has increased, making it more profitable to take advantage of the investment opportunity.
To know more about economy visit:
https://brainly.com/question/18461883
#SPJ11
A bank offers 5.00% on savings accounts. What is the effective annual rate if interest is compounded monthly? Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434) )
In order to calculate the effective annual rate on a savings account, we need to use the following formula:
EAR = (1 + i/n)^n - 1
Where EAR is the effective annual rate, i is the annual interest rate, and n is the number of times the interest is compounded per year.
Given that a bank offers an annual interest rate of 5.00% on savings accounts and the interest is compounded monthly, we need to first calculate the monthly interest rate.
i = 5.00% = 0.05n = 12 (since the interest is compounded monthly)
So, the monthly interest rate is:
i/n = 0.05/12 = 0.0041667
Now we can use the above formula to calculate the effective annual rate.
EAR = (1 + i/n)^n - 1EAR = (1 + 0.0041667)^12 - 1EAR = (1.0041667)^12 - 1EAR = 0.051161898 or 5.1162%
(rounded to 4 decimal places and expressed as a percentage)
The effective annual rate of interest for the savings account is 5.1162%.
To know more about effective visit :
https://brainly.com/question/27328727
#SPJ11
Roger contracts to paint Mrs. White's house for $500. Afterwards Roger informs Mrs. White that he has won the lottery and does not intend to ever pick up a paintbrush again. Mrs. White then hires David to paint the house for $750 and sues Roger for the increased cost ($250) of hiring David to paint her house. Mrs. White is seeking:
Group of answer choices
A. loss in value damages (compensatory)
B. consequential damages
C. punitive damages
D. liquidated damages
Kim and Jeff went to college together at E.O.U. Kim moves to Portland after graduation and Jeff remains in La Grande. Kim starts a successful business and during a telephone conference tells Jeff that she is shorthanded and would pay him union scale if he came to work for her. Jeff quits his job in La Grande, rents a U-Haul and moves to Portland. However, when he shows up at Kim's office, she informs him that she just lost a major customer and cannot hire any new employees at present. Jeff sues to enforce their agreement. A court will most likely hold that the agreement:
Group of answer choices
A. was unenforceable because of the parole evidence rule.
B. was unenforceable because it was not put into writing.
C. was enforceable under the U.C.C.
D. was enforceable based on promissory estoppel.
Answer: Mrs. White is seeking consequential damages. In the given case, Roger contracts to paint Mrs. White's house for $500. However, Roger informs Mrs. White that he has won the lottery and does not intend to ever pick up a paintbrush again.
Then Mrs. White hires David to paint the house for $750 and sues Roger for the increased cost ($250) of hiring David to paint her house. Consequential damages are damages that are awarded to compensate for damages that have resulted from an action.
They are often called special damages because they are unique to each situation. In this case, Mrs. White incurred damages as a direct result of Roger's breach of the painting contract. Therefore, Mrs. White is seeking consequential damages.
Further Explanation: The contract is the agreement between two parties to do something in exchange for something else. It is a legally binding agreement, and if either party breaches the contract, the other party may be entitled to damages.
Damages are the legal remedy for a breach of contract, and they are designed to put the non-breaching party in the position they would have been in if the contract had been performed. There are several types of damages that may be awarded for a breach of contract.
To know more about consequential visit:
https://brainly.com/question/24021386
#SPJ11
When a firm operates in multiple geographic markets simultaneously it is said to be implementing a product diversification strategy. A) True B) False Question 32 (1.2 points) Multipoint competition exists when two or more diversified firms simultaneously compete in multiple markets, and multipoint competition can serve to facilitate a particular type of tacit collusion called mutual forbearance. A) True B) False Question 33 (1.2 points) Institutional owners are usually pension funds, mutual funds, insurance companies, or other groups of investors that have joined together to manage their investments. A) True B) False
When a firm operates in multiple geographic markets simultaneously, it is said to be implementing a product diversification strategy. This statement is true.
A product diversification strategy is a strategy where a company expands its business operations by introducing new products or services in new markets.
When a company operates in multiple markets simultaneously, it is implementing a product diversification strategy.
Product diversification strategy allows a company to expand its operations and reduce its risks by spreading them across multiple markets.
A diversified firm that simultaneously competes in multiple markets is referred to as a multipoint competitor.
Multipoint competition exists when two or more diversified firms simultaneously compete in multiple markets, and multipoint competition can serve to facilitate a particular type of tacit collusion called mutual forbearance.
This statement is true.
Institutional owners are usually pension funds, mutual funds, insurance companies, or other groups of investors that have joined together to manage their investments. This statement is also true.
Know more about geographic markets here:
https://brainly.com/question/31419989
#SPJ11
In the United States today, nearly _________ of the population has attained a college degree.(30 percent)
Attaining a college degree usually involves completing a program of study at a college or university and earning a bachelor's degree. However, it's important to note that there are different levels of college degrees, including associate degrees, bachelor's degrees, master's degrees, and doctoral degrees.
Having a college degree can open up various opportunities for individuals. It can enhance their job prospects, increase earning potential, and provide them with a solid foundation of knowledge in their chosen field of study. College degrees are often seen as a measure of educational attainment and can be important for certain careers that require specialized knowledge and skills.
It's worth mentioning that the percentage of the population with college degrees may vary depending on factors such as age, socioeconomic status, and geographical location. Additionally, this figure is subject to change over time as more individuals pursue higher education.Overall, the statistic of nearly 30 percent of the population having a college degree provides insight into the educational landscape of the United States and highlights the importance of higher education in the country.
To know more about program visit:
https://brainly.com/question/31012644
#SPJ11
Nearly 30 percent of the population in the United States has attained a college degree. This means that out of every 100 people, around 30 hold a college degree.
In the United States today, nearly 30 percent of the population has attained a college degree. This means that approximately 30 out of every 100 people in the country hold a college degree.
Attaining a college degree is an important achievement as it can provide individuals with valuable skills and knowledge that can enhance their career opportunities and earning potential. It can also open doors to higher-level positions and professions that require advanced education.
To understand the significance of this percentage, let's consider a hypothetical scenario with a population of 100 people. According to the given statistic, approximately 30 of these individuals would have a college degree.
It is important to note that the percentage of individuals with a college degree can vary across different regions, age groups, and demographic factors. Factors such as income level, access to education, and cultural norms can influence the attainment of college degrees.
In conclusion, nearly 30 percent of the population in the United States has attained a college degree. This means that out of every 100 people, around 30 hold a college degree. Attaining a college degree can have numerous benefits, including improved career prospects and increased earning potential.
To know more about demographic factors visit:
https://brainly.com/question/796888
#SPJ11
Explain how the ratings process for municipalities interested in securing financing and co-financing for own or co-developed renewable energy power plants with independent producers or small and embedded power producers would work, and evaluate the risks and viability of this industry structure where municipalities replace Electricity company in the developer and power purchase agreements?
The ratings process evaluates municipalities' creditworthiness and capabilities. Replacing electricity providers in agreements offers benefits but also carries risks. Proper risk assessment and strong contracts are crucial for viability.
The creditworthiness and capabilities of towns seeking finance and co-funding for renewable energy power plants are assessed as part of the ratings process. Municipalities would need to go through a thorough evaluation, taking into account things like their financial situation, ability to take on debt, governance procedures, and project management experience.
In developer and power purchase agreements, switching out electricity providers can have benefits like local control and potential cost savings. It also brings risks, though. Municipalities may lack knowledge of energy markets and project development, which could result in operational difficulties, cost overruns, and delays. Furthermore, taking on debt could put a strain on municipal finances and subject them to market swings. For this industry to remain viable, proper risk analysis, capacity building, and strong contractual agreements are essential.
Learn more about risk assessment here:
https://brainly.com/question/31632025
#SPJ11
Lee purchased a stock one year ago for $28. The stock is now worth $33, and the total return to Lee for owning the stock was 0.37. What is the dollar amount of dividends that he received for owning the stock during the year? Round to two decimal places.
The formula for total return is given as follows:
Total return = capital gain/loss + dividend yield
For example, capital gain/loss = (ending stock price – initial stock price) / initial stock price
Dividend yield is calculated as follows:
Dividend yield = dividends per share / stock price Initial stock price= 28
Ending stock price = 33
Total return to Lee = 0.37
Capital gain/loss = Total return - dividend yield0.37
= (33-28)/28 + dividend yield
Dividend yield = 0.12 = dividend / 28
Dividend = 3.36 dollars for owning the stock during the year.
So, the dollar amount of dividends Lee received for owning the stock during the year is 3.36.
To know more about calculated visit :
https://brainly.com/question/30781060
#SPJ11
21 Dec The owner informed the accountant that he had taken sanitizer with a cost of R12 260.00 (excluding VAT) for his own use. 24 Dec Cash register till slips (16/12/2018 - 24/12/2018) for cash sales of: R44 464.00. Deposited 27 Dec 2018. 24 Dec The owner withdrew cash of R48 286.00 from the entity’s bank account to pay employee salaries. 6 FRK 121/122 Assignment Information 2022 29 Dec The owner instructed the accountant to calculate interest at 8% per annum on the balance owing by C Hemsworth which had been in arrears for 7 months at this date. 30 Dec An EFT of R6 000.00 was issued to the owner, for his personal cell phone account. 31 Dec A proof of payment via EFT was received for R600.00 from Martin Goodman Attorneys. Refer to letter received from the attorneys. 31 Dec Received an invoice from T Hardy for R4 020.00 in respect of office equipment purchased. The current residual value is estimated to be R1 020.00. 31 Dec Cash register till slips (27/12/2018 - 31/12/2018) for cash sales of: R64 108.00. Deposited 2 Jan 20X8. 31 Dec A direct deposit was received from Ragnarock Attorneys for R4 000.00 in respect of an amount that they collected for the account of L Loki. According to the accounting records, this amount had been written off as irrecoverable in a prior period. 31 Dec A EFT for R4 560.00 was issued for advertisements which appeared in local magazines during December 2018. 31 Dec Issued a credit sales invoice to R Downey for purchases of sanitizer R2 996.00. Invoice AB52 was subsequently received from H Cavill for the delivery costs of 10% (including VAT) on the value of the sanitizer sold to R Downey. 31 Dec Cash of R1 016.00 was withdrawn by the accountant from the entity’s bank account to re-instate the petty cash balance on hand to R1 600.00. 31 Dec Stan Lee, the owner has been discussing the sale of some office equipment with his close friend and they decided to finalise the deal before year-end. The equipment was initially purchased on 1 April 2015 for R16 000.00, and was sold to Tony Stark for R10 000.00 on 1 December 2018. No entry has been made for this transaction. Tony Stark is not registered as a VAT vendor, and agreed to pay the amount due before the end of June 2019. - All of the office equipment items on the asset register, except those purchased during the current year, were purchased and ready for use on 1 April 2015. - Office equipment is depreciated at 15% per annum in accordance with the reducing balance method. General Journal, Creditors ledger and Debtors Ledger ANSWER PLS.
General Journal, Creditors ledger, and Debtors Ledger are shown below.DateDetailsDebitCredit21 December 2018Consumables account - sanitizer purchased 14 119.00214 Inventory (Creditors) 14 119.0024 December 2018Bank account 48 286.00Owners drawings account 48 286.0024 December 2018Debtors account 44 464.00
Sales account 44 464.0029 December 2018Interest receivable account 800.00C Hemsworth account 800.0030 December 2018Owners drawings account 6 000.00Bank account 6 000.0031 December 2018Advertisement account 4 560.00Bank account 4 560.0031 December 2018Equipment account (including VAT) 4 020.00Input VAT account 560.00Creditors account (T Hardy) 4 580.0031 December 2018Sales account 2 996.00Debtors account (R Downey) 2 996.0031 December 2018Cost of sales account 299.60Input VAT account 26.40Consumables account 326.00(Invoice AB52 received from H Cavill)
31 December 2018Petty cash account 1 016.00Bank account 1 016.0025 February 2019Bank account 1 485.00Interest received account 35.00Debtors account (C Hemsworth) 1 450.00Creditors LedgerDateDetailsAmountAmountDateDetailsAmountAmount29 Dec 2018Interest charge 800.00C Hemsworth 800.0031 Dec 2018
Purchases 4 580.00T Hardy 4 580.00Debtors LedgerDateDetailsAmountAmount29 Dec 2018Interest 800.00C Hemsworth 800.0031 Dec 2018Sales 2 996.00R Downey 2 996.0031 Dec 2018Receipt 4 000.00L Loki 4 000.00
To know more about Inventory visit :
https://brainly.com/question/31827018
#SPJ11
Suppose you have been asked by a manager to do some extra work. You would like to help, but already have a full work load. To avoid any problems, you should 1__ the manager 2_ You should communicate_3__ and_4_ (Answer 1) Speak to Wrift to Email
When you are asked by a manager to do some extra work and you already have a full work load, to avoid any problems, you should 1. talk to the manager, 2. communicate your concerns, 3. explain your current workload, and 4. try to come up with a solution that works for both parties.
In the first step, you should speak to the manager. You can either meet the manager in person, or talk to them over the phone. You should explain that you would like to help, but you are concerned about your current workload. In the second step, you should communicate your concerns. You should explain that you are worried about not being able to complete the extra work on time because you already have a full workload. You should also explain that you don't want to let the manager down, but you need to be realistic about what you can accomplish.
In the third step, you should explain your current workload. You should provide details about the work that you are currently doing, and how long you expect it to take you to complete. This will give the manager a better understanding of what you are dealing with. In the final step, you should try to come up with a solution that works for both parties. This might involve delegating some of your current work to someone else, or it might involve extending the deadline for the extra work. You should work with the manager to find a solution that works for both of you.
In conclusion, when you are asked to do extra work, but you already have a full workload, you should talk to the manager, communicate your concerns, explain your current workload, and try to come up with a solution that works for both parties. You should be honest and realistic about what you can accomplish, and you should work with the manager to find a solution that works for everyone involved.
To know more about workload visit :-
https://brainly.com/question/28880047
#SPJ11
Which of the following businesses and activities enjoys an implied exemption from antitrust laws?
A.
agricultural cooperativesB.
railroads
C.labor unions
D.airlinesAccording to the Sarbanes-Oxley Act, in order to audit a public company, ________.
A.a public accounting firm must register with the Public Company Accounting Oversight Board (PCAOB)B.
he law of accountant-client privilege must be adopted by the state legislature in the state where the audit is to occurC.
only public accountants may serve on the audit committeeD.
all public accounting firms must assign an accountant who works closely with one client over an extended period of time
An offering statement requires less disclosure than a registration statement and is less costly to prepare.
Question content area bottom
Part 1
True
False
Agricultural cooperative enjoys an implied exemption from antitrust laws.
According to the Sarbanes-Oxley Act, in order to audit a public company, a public accounting firm must register with the Public Company Accounting Oversight Board (PCAOB). Option A is the answer.
It is true that an offering statement requires less disclosure than a registration statement and is less costly to prepare. The answer is True.
What are agricultural cooperatives?Agricultural cooperatives are considered exempt from antitrust laws under the Capper-Volstead Act of 1922. This law gives privilege to farmers to jointly process, market, and sell their farm produce.
The PCAOB was established by the Sarbanes-Oxley Act to oversee the audits of public companies in order to protect investors and the public interest. This act requires public accounting firms that audit public companies to register with the PCAOB and are subject to inspection, investigation, and disciplinary action by the PCAOB. .
The offering statement allows companies to raise up to $75 million from the public in a 12-month period. The offering statement is filed with the Securities and Exchange Commission (SEC) and is subject to review and qualification by the SEC.
Learn more on antitrust law on https://brainly.com/question/13800256
#SPJ1
Click to see additional instructions The nominal interest rate is 12%. The tax rate on nominal interest is 25%. The after tax nominal interest rate is
The nominal interest rate refers to the interest rate before adjusting for inflation, while the after-tax nominal interest rate refers to the real interest rate adjusted for taxes. Therefore, the after-tax nominal interest rate is calculated by subtracting the tax rate from the nominal interest rate and calculating the remaining amount.
For example, given a nominal interest rate of 12% and a tax rate of 25%, the after-tax nominal interest rate is calculated as follows:
After-tax nominal interest rate = (1 - tax rate) × nominal interest rate= (1 - 0.25) × 12%
= 0.75 × 12%
= 9%
Therefore, the after-tax nominal interest rate is 9%. The after-tax nominal interest rate is the rate of return on an investment after taxes have been paid.
The after-tax nominal interest rate is used to compare the relative profitability of different investment opportunities. For example, if two investment opportunities have the same nominal interest rate but different tax rates, the after-tax nominal interest rate can help determine which investment opportunity is more profitable.
To know more about adjusting visit :
https://brainly.com/question/4692935
#SPJ11
If Mr. Smith thinks the last dollar spent on shirts yields less satisfaction than the last dollar spent on cola, and Smith is a utility-maximizing consumer, he should
a. decrease his spending on cola.
b. decrease his spending on cola and increase his spending on shirts.
c. increase his spending on shirts.
d. increase his spending on cola and decrease his spending on shirts
Answer:
Increase his spending on cola and decrease his spending on shirts.
Explanation:
Suppose there is a single monopolist that sells widgets in a small town. The population can be divided between the east side of town and the west side of town. In the west side, the price elasticity of demand is −2. On the east side, the price elasticity of demand is −6. The marginal cost per widget is constant at $10 (cost of hooking up the internet). What price will it charge in each location?
The monopolist will charge $20 in the West and $80 in the East.
Monopolist will charge a different price on the east and west sides of town to maximize profit. For maximum profit, a monopolist uses the marginal revenue (MR) and marginal cost (MC) rule:
MR = MC.
That is, the monopolist charges the price where the marginal revenue equals the marginal cost. It implies that when the additional revenue from selling an additional unit is equal to the cost of producing it, the monopolist will stop producing. The firm will maximize profit at that level of output.
Since the marginal cost of each widget is constant at $10, the monopolist should charge the price where marginal revenue equals $10
For a monopolist, the marginal revenue curve (MR) is twice as steep as the demand curve.
Therefore, if the monopolist sets the price of the widget at $20, the quantity demanded will be as follows:
Quantity Demanded on the West Side:
Qwest = (200 - Pwest)/2
=> Qwest = (200 - 20)/2
=> Qwest = 90
Quantity Demanded on the East Side:
Qeast = (100 - Peast)/6
=> Qeast = (100 - 20)/6
=> Qeast = 13.33
Know more about the monopolist
https://brainly.com/question/2891218
#SPJ11
You've just been given the assignment to create presentation slides for a new client. The client, House- You, is a start-up that aims to compete with Airbnb in the private room- and house-rental business. The purpose of the presentation is to pitch the business idea to investors. Discuss five steps for delivering a successful presentation and discuss your options for supporting a presentation with visuals. Your answer should be approximately 100 words
Options for incorporating visuals include using PowerPoint slides, videos, infographics, or images. The objectives should be clear, measurable, and achievable.
Delivering a successful presentation can be achieved by following these five steps:
Step 1: Know Your Audience You should know the background, expectations, and level of knowledge of your audience members.
This will help you to tailor your message to them more effectively and help you to choose visuals that will resonate with them.
Step 2: Develop Clear Objectives You should establish your goals and objectives, as this will guide your research and presentation preparation.
Step 3: Create a Solid Outline To be successful in delivering your presentation, your presentation must be structured and organized, which will enable the audience to follow your message.
Step 4: Design and Incorporate Visuals Supporting a presentation with visuals can be effective in aiding the audience's understanding of your message.
Practicing your delivery and making any necessary changes will help you to identify areas that need improvement.
The more you prepare and practice, the more confident you will be during the actual presentation.
To know about PowerPoint visit:
https://brainly.com/question/32680228
#SPJ11
fishbone corporation bought a new machine and agreed to pay for it in equal annual installments of 4000 at the end ocf each of the next 10 years
Fishbone Corporation bought a new machine and agreed to pay for it in equal annual installments of $4,000 at the end of each of the next 10 years. Assuming that a prevailing interest rate of 8% applies to this contract, $28,527.21 Fishbone record as the cost of the machine.
Given information
PV = present valuePMT = payment amountr = interest raten = number of periodsPMT = $4,000r = 8%n = 10The following formula can be used to determine the present value of the cash payments using the information provided:
PV = PMT x [1 - (1 / (1 + r)n)] / r
PV = $4,000 x [1 - (1 / (1 + 0.08)10)] / 0.08
PV = $28,527.21
Learn more about on interest rate, here:
https://brainly.com/question/28236069
#SPJ4
Your question is incomplete, but most probably the full question was.
Fishbone Corporation bought a new machine and agreed to pay for it in equal annual installments of $4,000 at the end of each of the next 10 years. Assuming that a prevailing interest rate of 8% applies to this contract, how much should Fishbone record as the cost of the machine?
Using the following information: a. The bank statement balance is $3,350. b. The cash account balance is $3,646. c. Outstanding checks amounted to $655. d. Deposits in transit are $794. e. The bank service charge is $148. f. A check for $74 for supplies was recorded as $65 in the ledger. Prepare a bank reconciliation for Miller Co. for August 31. Miller Co. Bank Reconciliation August 31 Cash balance according to bank statement Adjustments: Total adjustments Adjusted balance Cash balance according to company's records Adjustments: Total adjustments Adjusted balance
The bank statement balance is $3,350. Next, we need to consider the adjustments. There are two adjustments we need to make: outstanding checks and deposits in transit.
Outstanding checks are checks that have been issued by the company but have not yet cleared the bank. According to the information given, the outstanding checks amount to $655. Deposits in transit are deposits that have been made by the company but have not yet been recorded by the bank. According to the information given, the deposits in transit amount to $794.
Adjusted balance = Cash balance
according to bank statement - Outstanding checks + Deposits in transit Adjusted balance = $3,350 - $655 + $794.
\Now, let's move on to the cash balance according to the company's records. According to the information given, the cash account balance is $3,646.
To know more about deposits visit:
https://brainly.com/question/28027513
#SPJ11
Our construction project manager has 4 pieces of equipment to be added to the yard. (at a general contractors work site) Do capital analysis on all 4 pieces of equipment and enter the results in the summary excel form. Perhaps you could use Falcon Crest as a template. Make a decision as to which pieces of equipment are most profitable using the profitability index. Each auction sheet has various facts and information on them, you may or may not need all the information in your calculations. Attached are 4 auction bid sheets of the equipment and an excel summary sheet. SUMMARY Requirement 1: using separate tools and techniques, calculate the information and fill in the summary. Requirement 2. Which projects should rank first and why? 2021 Western Star 4700SB 6x4 T/A Dump Truck Item Number 5606401 Location Quaker City, Ohio, United States. 43773 Auction Date Dec 6, time TBD ITEM DETAILS Mileage 23,573 Miles VIN 5KKHAXDV2MPMK9019 Detroit DD 13 6 Cylinder 12.8L Diesel 525 hp Engine, US $89,000 Cost of Capital 7% (nfw equipment rate) Hurdle Rate 7% Cash Flow 513,700 Depreciation # A year SL, Salvage \$2,000 Peterbilt 348 4,000 gal 6x4 Water Truck Item Number 5702336 Location Humble, Texas, United States. 77396 Auction Date Dec 6, time TBD Mileage 21,461 Miles VIN 2NP3LJ0X6KM614721 USS75,000 Depreciation total 50,000 miles, 4,000 annual miles Salvage $5,000 Cash Flow $14,000 per year Cost of Capital 7\% Hurdle rate 7% 10 year life 2016 Cat 966M Wheel Loader Item Number 5721824 Location Hope Mills, North Carolina, United States. 28348 Auction Date Dec 6, time TBD US $81,000 Salvage \$1,000 Meter Reading 4,825 Hours Serial # CAT0966MCR8D00203 Enclosed Cab, Air Conditioner, Air Ride Seat, Joystick Steering, Auxiliary Hydraulic Plumbing, Life of asset: 10 year Cash Flow $12,200 Cost of Capital 7\% Hurdle rate 7% 2005 Cat D8T Crawler Dozer Item Number 5752023 Location Stringtown, Oklahoma, United States. 74569 Auction Date Dec 6, time TBD US $84,000 Meter Reading 26,109 Hours Serial # KPZ00698 Cost of Capital 10% (due to age of equipment) Hurdle rate 10% Cash Flow 910,500 per year for 10 years Depreciation 40,000 hours, Salvage $4,000, annual hours 4,000 Company cannot use financing sources available under its cost of capital average with local banks and lendin companies on this age of equipment. Therefore the cost of capital is higher. 2
The 2021 Western Star 4700SB 6x4 T/A Dump Truck should be added to the yard as it is the most profitable.Requirement 1: Capital Analysis on all 4 pieces of equipment 2021
Western Star 4700SB 6x4 T/A Dump Truck:Depreciation per year: $89,000 - $2,000 / 10 years = $8,700 per year
Cash inflows = $513,700
Profitability Index = Present Value of Cash Inflows / Initial Investment
= $513,700 / $89,000 = 5.77
Peterbilt 348 4,000 gal 6x4 Water Truck:
Depreciation per year = $75,000 - $5,000 / 10 years = $7,000 per year
Cash inflows = $14,000
Profitability Index = Present Value of Cash Inflows / Initial Investment
= $14,000 / $75,000 = 0.19
2016 Cat 966M Wheel Loader:
Depreciation per year = ($81,000 - $1,000) / 10 years = $8,000 per year
Cash inflows = $12,200
Profitability Index = Present Value of Cash Inflows / Initial Investment
= $12,200 / $81,000 = 0.15
2005 Cat D8T Crawler Dozer:
Depreciation per year = ($84,000 - $4,000) / 10 years = $8,000 per year
Cash inflows = $910,500
Profitability Index = Present Value of Cash Inflows / Initial Investment
= $910,500 / $84,000 = 10.85
Requirement 2:
Based on the profitability index calculation, the 2021 Western Star 4700SB 6x4 T/A Dump Truck should rank first as it has the highest profitability index, which indicates it is the most profitable. The Peterbilt 348 4,000 gal 6x4 Water Truck and 2016 Cat 966M Wheel Loader have a negative profitability index, which means they are not profitable investments. The 2005 Cat D8T Crawler Dozer has the second-highest profitability index, but due to its high cost of capital and the fact that the company cannot use financing sources available under its cost of capital average with local banks and lending companies on this age of equipment, it is not the most profitable investment.
Therefore, the 2021 Western Star 4700SB 6x4 T/A Dump Truck should be added to the yard as it is the most profitable.
To know more about equipment visit:
https://brainly.com/question/30230359
#SPJ11
11. Which effort will cause a firm to lower its sustainable growth rate? A. Plowing back a high proportion of its earnings B. Achieving a high return on equity C. Increasing the current dividend per share by 50% D. Maintaining a high sales-to-total assets ratio
Previous question
The effort that will cause a firm to lower its sustainable growth rate is C. Increasing the current dividend per share by 50%.
What is it?Sustainable Growth Rate:
Sustainable growth rate is the highest growth rate that a company can sustain without having to increase debt or equity financing.
It shows the maximum rate of growth that can be maintained without leading to the financial instability of the company.
Increasing the dividend per share by 50% will cause a firm to lower its sustainable growth rate. This is because when a company increases its dividend payout ratio, it is distributing a larger proportion of earnings to shareholders and reinvesting a smaller proportion of earnings.
As a result, the retained earnings available for reinvestment in the business decreases.
This will lead to a decrease in the sustainable growth rate of the company.
Hence, option c. is correct.
To know more on sustainability visit:
https://brainly.com/question/32771548
#SPJ11
Suppose Alcatel-Lucent has an equity cost of capital of 10.5%, market capitalization of $10.22 billion, and an enterprise value of $14 billion. Suppose Alcatel-Lucent's debt cost of capital is 5.5% and its marginal tax rate is 35%.
a. What is Alcatel-Lucent's WACC?
b. If Alcatel-Lucent maintains a constant debt-equity ratio, what is the value of a project with average risk and the expected free cash flows as shown here,
Year 0 1 2 3
FCF ($ million) -100 52 99 75
c. If Alcatel-Lucent maintains its debt-equity ratio, what is the debt capacity of the project in part (b)?
What is Alcatel-Lucent's WACC? The calculation of WACC of Alcatel-Lucent is given below, Firstly, we have to find the market value of equity and debt using the given data Market Value of Equity.
[tex]= $10.22 billion Market Value of Debt = $14 billion - $10.22 billion = $3.78[/tex]
[tex]billion Total value of the firm = $14 billion.[/tex]
Now, WACC can be calculated using the below formula,
[tex]WACC = ((E / V) × Re) + ((D / V) × Rd) × (1 - Tc)where,[/tex]
[tex]E = Market value of Equity V = Total value of firm D = Market value of Debt[/tex]
[tex]Re = Equity cost of capital Rd = Debt cost of capital Tc = Marginal tax rate[/tex]
Substituting the given data in the above formula, we get
[tex]WACC = ((10.22 / 14) × 10.5%) + ((3.78 / 14) × 5.5%) × (1 - 35%)[/tex]
[tex]WACC = 7.37%Therefore, Alcatel-Lucent's WACC is 7.37%.[/tex]
If Alcatel-Lucent maintains a constant debt-equity ratio, what is the value of a project with average risk and the expected free cash flows?The calculation of present value of free cash flows is given below,
[tex]Year0 1 2 3FCF($ million) -100 52 99 75WACC7.37%[/tex]
[tex]Present Value Factor 1 0.9346 0.8734 0.8169[/tex]
[tex]Present Value ($ million) -100 48.53 86.60 61.76Total
Present Value = $(-100) + $48.53 + $86.60 + $61.76 = $96.89 million[/tex]
The value of the project with average risk and the expected free cash flows is
If Alcatel-Lucent maintains its debt-equity ratio, what is the debt capacity of the project?The calculation of debt capacity of the project is given below,
[tex]Debt capacity = (Market value of Equity + Market value of Debt) × D / V
where, D / V = Debt-equity ratio = 3.78 / 10.22 = 0.3694[/tex]
To know more about calculation visit:
https://brainly.com/question/30781060
#SPJ11
Safety professionals routinely look to statistics to describe or infer future responses, such as accident prediction models. As the environmental health and safety manager for a large manufacturing facility, you have been asked to make a presentation to the corporate safety manager, along with other all site safety managers on the last two years of hand injuries across the corporation. There are a total of 126 hand injuries with various causes. Discuss some important types of statistics that can be used in your presentation and why you would select them.
Your journal entry must be at least 200 words in length. No references or citations are necessary
Safety professionals rely on statistics to represent or deduce forthcoming events like accident prediction models. When given a task to create a presentation on hand injuries across a corporation, an environmental health and safety manager for a big manufacturing facility will select various statistics to be included in the presentation.
In the presentation, the manager would need to show statistics on the hand injuries over the last two years. The information should include the various causes of the hand injuries that occurred across the corporation and the ways of preventing such injuries.
Types of statistics that can be used in the presentationThe incidence rate of hand injuries- The incidence rate of hand injuries refers to the number of new hand injuries that have occurred during a particular period. It will be useful to know how many people got injured in the last two years and how many of them were new injuries.
The rate can also be broken down per site, department, or job titles, which will help show which areas are most vulnerable and need immediate attention.Injury severity- The severity of an injury describes the degree of harm caused. Using this statistic will help to show how severe the injuries were.
It can be presented in numbers like the number of lost days, medical treatments required, and the number of injuries that resulted in permanent disabilities or amputations. This statistic can be compared to past years or across sites to help determine trends.Frequency- Frequency is a measure of the total number of hand injuries that occurred over a particular period.
To know more about professionals visit:
https://brainly.com/question/30271798
#SPJ11
monopoly 2000 finance financial statement forecast shows balance
sheet helpppp
Monopoly 2000 finance financial statement forecast shows balance sheetA financial statement forecast is an estimate of the financial position of a business enterprise in the future period. It is also known as a financial plan that is created by a company to determine its goals and objectives.
A balance sheet is one of the essential financial statements used in business accounting to display the financial position of a company at a specific point in time. The statement displays the assets, liabilities, and equity of a business. The assets include cash, accounts receivable, inventory, equipment, and other items that the company owns and uses to generate revenue.
The liabilities refer to the money the company owes to its creditors, including loans, accounts payable, and taxes payable. The equity represents the residual interest in the assets of the company after deducting liabilities. This forecast helps in predicting the future financial position of the company.
It is important for every business owner to create a financial statement forecast to know their financial position. This financial statement forecast shows the future cash inflows and outflows, which helps the company to make informed decisions regarding its business operations and investments. It is an essential tool for managing the finances of a company.
To know more about create visit:
https://brainly.com/question/14172409
#SPJ11
Olongapo Sports Corporation distributes two premium golf balls the Flight Dynamic and the Sure Shot Monthly sales and the contribution margin ratios for the two products follow. Product Flight Dynamic Sure Shot Total $690,000 $310,000 $1,000,000 67% 73% ? Sales CM ratio Fixed expenses total S579,500 per month. Required 1. Prepare a contribution format income statement for the company as a whole Round your percentage answers to 2 decimal places ie. .1234 is considered as 12.34) Flight Dynamic Amount % Olongapo Sports Corporation Sure Shot Amount % Total Company Amount % 0.00 % $ 0.00 % 0.00 % 2. Compute the break-even point for the company based on the current sales mix. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount) Break-even point in sales 3. If sales increase by $49,000 a month, by how much would you expect net operating income to increase? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount. ) Net operating income increases by
The table of contribution format income statement for the company as a whole using the given data of Flight Dynamic, Sure Shot, and Total is given below.
What is it?Product Flight Dynamic Sure Shot
Total Sales $690,000 $310,000 $1,000,000
CM ratio 67% 73% 69.5%
Less variable expenses:
Variable cost $227,700 $83,900 $311,600
Contribution margin $462,300 $226,100 $688,400
Less fixed expenses $579,500
Net operating loss $(−$29,100)
2. Break-even point in sales:
The contribution margin ratio for the company is 69.5%, which means that the company can cover 69.5% of its fixed costs from each dollar of sales.
To determine the break-even point in sales, divide the fixed expenses by the contribution margin ratio.
Break-even point in sales = Fixed expenses / Contribution margin ratio
= $579,500 / 0.695
≈ $834,5323.
Increase in net operating income:
Increase in sales = $49,000.
The contribution margin ratio for the company is 69.5%, which means that the company can cover 69.5% of its fixed costs from each dollar of sales.
Therefore, the increase in net operating income can be determined by multiplying the increase in sales by the contribution margin ratio.
Net operating income increases by = $49,000 × 0.695
= $34,055 (rounded to the nearest whole dollar)
To know more on Income visit:
https://brainly.com/question/2386757
#SPJ11
British government 5% perpetuities pay £5 interest each year forever. Another bond, 3.5% perpetuities, pays £3.5 a year forever.
a. What is the value of 5% perpetuities if the long-term interest rate is 9.5% ? (Round your answer to 2 decimal places.)
Perpetuity value
b. What is the value of 3.5% perpetuities? (Round your answer to 2 decimal places.)
Perpetuity value
a. Value of 5% perpetuity First, we find the perpetuity value using the formula PV
= PMT/i where PV is the present value, PMT is the payment, and i is the discount rate.
i = 9.5%PMT
= £5Using PV
= PMT/i, the value of 5% perpetuity is:PV
= PMT/i
= £5/0.095
= £52.63b. Value of 3.5% perpetuity Using the same formula, PV
= PMT/i, the value of 3.5% perpetuity is:PMT
= £3.5i = 9.5%PV
= PMT/i
= £3.5/0.095
= £36.84Therefore, the value of 5% perpetuities if the long-term interest rate is 9.5% is £52.63 and the value of 3.5% perpetuities is £36.84.
To know more about perpetuity visit:
https://brainly.com/question/32953399
#SPJ11
On your twelfth birthday, you received $1,000 which you invested at 10.0 percent interest, compounded annually. Your investment is now worth $1,948.72. How old are you today? Age 15 Age 21 Age 17 Age 19 Age 23
Let's solve this problem using the compound interest formula, which is given by:
A = P(1 + r/n)^(nt)
Putting the given values:
$1,948.72 = $1,000(1 + 0.10/1)^(1*t)
Divide both sides by $1,000:
$1,948.72 / $1,000 = (1.10)^t
Take the logarithm on both sides:
log(1.94872/1,000) = t * log(1.10)
Calculating the logarithm:
t = (log(1.94872) - log(1,000)) / log(1.10)
Simplifying:
t = 3.047 / 0.0413927
t ≈ 73.56
Therefore, the person is approximately 73 years old today.
Let's check the answer:
After 3 years, the person will be 73 + 3 = 76 years old.
Now we will calculate the worth of the investment after 3 years:
$1,000(1 + 0.10/1)^(1 * 3) = $1,331.00
The amount is less than $1,948.72 because the annual rate of 10% is compounded only once a year. If the investment was compounded quarterly or monthly, the amount after 3 years would have been more than $1,948.72.
To know more about compound visit:
https://brainly.com/question/14117795
#SPJ11
Blue Mountain Distributors has a $40 million bond outstanding that carries a 12 percent coupon rate paid annually. Current bonds yield are 9.5 percent. The $40 million bond was issued 20 years ago with 30 years to maturity and carries a call premium of 5%. With the fall in interest rates the company's Finance Manager has recommended that the bond be refunded. The new bond issue would require $1.2 million in underwriting cost and an overlap period of one month is anticipated. Short term money market rates are currently 7 percent and Blue Mountain has a tax rate of 40 percent. Required: Advise Blue Mountain Distributors on whether or not they should refund the bond. (Show all calculations)
Given:Blue Mountain Distributors has a $40 million bond outstanding that carries a 12 percent coupon rate paid annually. Current bonds yield are 9.5 percent.
The $40 million bond was issued 20 years ago with 30 years to maturity and carries a call premium of 5%.The new bond issue would require $1.2 million in underwriting cost and an overlap period of one month is anticipated.Short term money market rates are currently 7 percent and Blue Mountain has a tax rate of 40 percent.To find:Should Blue Mountain Distributors refund the bond?Solution:The call price is the present value of $1000 paid annually for 30 years and discounted at 12% plus 5% premium for a bond callable at $1050.Call price = PV of annuity + premium= $1000 × [1 - 1/(1.12)30] / 0.12 + $1050 × (1 / 1.12)30= $9379.36 + $118.46= $9497.82
The company would receive $9497.82 for every $1000 bond if they decide to call the bond.The current value of the bond is the present value of $120 coupon payment plus the present value of the call price discounted at the yield to maturity.Yield to maturity (YTM) of old bond = 12%Current yield of bonds = 9.5%Therefore, the bond price should be higher than its par value, so it is selling at a premium.
To know more about bonds visit:
https://brainly.com/question/29282058
#SPJ11
The Denver Post reported that, on average, a large shopping center had an incident of shoplifting caught by security 2.1 times every five hours. The shopping center is open from 10 AM to 9 PM. (11 hours). Let r be the number of shoplifting incidents caught by security in an 11-hour period during which the center is open.
(a) Explain why the Poisson probability distribution would be a good choice for the random variable r
O Frequency of shoplitting is a rare occurrence. It is reasonable to assume the events are dependent
O Frequency of shoplifting is a common occurrence. It is reasonable to assume the events are dependent
O Frequency of shoplifting is a common occurrence. It is reasonable to assume the events are independent
Frequency of shoplifting is a rare occurrence. It is reasonable to assume the events are independent.
The correct answer is Frequency of shoplifting is a rare occurrence. It is reasonable to assume the events are independent.
The Poisson distribution is a discrete probability distribution that describes the probability of a certain number of events occurring in a fixed interval of time or space if these events occur with a known average rate and independently of each other.
In this case, the average number of shoplifting incidents caught by security in a 5-hour period is 2.1. This means that the probability of a shoplifting incident occurring in a 5-hour period is very low. Additionally, it is reasonable to assume that the shoplifting incidents are independent of each other, meaning that the occurrence of one shoplifting incident does not affect the probability of another shoplifting incident occurring.
Therefore, the Poisson distribution is a good choice for the random variable r because it describes the probability of a rare event occurring independently in a fixed interval of time.
To learn more about shoplifting: https://brainly.com/question/29976618
#SPJ11
Quantitative benefits of a project are the intangible benefits of completing a project such as employee morale. True False
The statement "Quantitative benefits of a project are the intangible benefits of completing a project such as employee morale" is FALSE.
Quantitative benefits of a project are not intangible. These benefits are measurable, and they relate to the numerical aspect of a project. Quantitative benefits can include cost savings, revenue increases, and reduced project durations, while intangible benefits cannot be measured and valued monetarily.Intangible benefits of completing a project are qualitative, and they cannot be measured or quantified. These benefits may include customer satisfaction, employee satisfaction, and enhanced company reputation. Employee morale is considered an intangible benefit because it is not easily measurable but is a significant factor in the success of a project. Therefore, it is not correct to state that "Quantitative benefits of a project are the intangible benefits of completing a project such as employee morale." Hence, the statement is False.
To know more about Quantitative benefits visit:
https://brainly.com/question/32682623
#SPJ11