Option D is the correct answer. Increasing the length of the loan will not result in a reduction in total interest paid.
When considering a loan, the total interest paid is influenced by various factors. Let's analyze each option and its impact on total interest paid:
A) Increasing the frequency of payments: This will result in a reduction in total interest paid. By making more frequent payments, the outstanding principal balance decreases faster, reducing the amount of time interest has to accrue.
B) Increasing the amount of each payment: This will result in a reduction in total interest paid. When larger payments are made, more of the payment goes toward reducing the principal balance, reducing the amount of interest that accrues over time.
C) Decreasing the amount borrowed: This will result in a reduction in total interest paid. With a smaller principal balance, there is less money on which interest can accumulate, leading to lower overall interest payments.
D) Increasing the length of the loan: This will NOT result in a reduction in total interest paid. Extending the loan term means the interest has more time to accrue, resulting in higher total interest paid over the life of the loan.
Among the given options, increasing the length of the loan (option D) will not result in a reduction in total interest paid. The other options, namely increasing the frequency of payments (option A), increasing the amount of each payment (option B), and decreasing the amount borrowed (option C), will all lead to a reduction in total interest paid.
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A company factored $50,000 of its accounts receivable and was charged a 1actoring fee. the journal entry to record this transaction would include a:______
e. Debit to Cash of $43,650, a Debit to Factoring Fee Expense of $1,350, and Credit to Account Receivable of $45,000
When a company factors its accounts receivable, it sells the receivables to a financial institution at a discounted price. In this case, the company factored $45,000 of its accounts receivable with a factoring fee of 3%.
The journal entry to record this transaction would include a debit to Cash for the amount received, which is the discounted value of the accounts receivable after deducting the factoring fee. The discounted value can be calculated as $45,000 - ($45,000 * 3%) = $43,650.
Additionally, there would be a debit to Factoring Fee Expense for the factoring fee charged by the financial institution, which is $45,000 * 3% = $1,350.
Lastly, there would be a credit to Accounts Receivable to remove the amount factored from the company's books. The credit amount would be the original value of the accounts receivable, which is $45,000.
Therefore, the correct journal entry is a debit to Cash of $43,650, a debit to Factoring Fee Expense of $1,350, and a credit to Accounts Receivable of $45,000.
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The complete question is:
A company factored $45,000 of its accounts receivable and was charged a 3% factoring fee. The journal entry to record this transaction would include a:
a. Debit to Cash of $45,000 and a Credit to Account Receivable of $45,000b. Debit to Cash of $46,350 and a Credit to Account Receivable of $46,350c. Debit to Cash of $45,000 and a Credit to Notes Payable of $45,000d. Debit to Cash of $45,000, a Debit to Factoring Fee Expense of $1,350, and Credit to Account Receivable of $43,650e. Debit to Cash of $43,650, a Debit to Factoring Fee Expense of $1,350, and Credit to Account Receivable of $45,000Pat Johannsen earns RM35,000 per year and takes home RM2,300 per month after taxes. She has total monthly expenses of RM1,800. How much of an emergency fund should she have? What factors should she consider in deciding how much is necessary?
Pat Johannsen should have an emergency fund of at least 3-6 months' worth of living expenses.
To determine how much of an emergency fund Pat Johannsen should have, it is generally recommended to save 3-6 months' worth of living expenses. In this case, Pat's monthly expenses amount to RM1,800. Assuming she needs to cover her expenses for 3 months, her emergency fund should be RM1,800 x 3 = RM5,400.
However, it is advisable to have a larger emergency fund to provide a safety net in case of prolonged unemployment or unexpected expenses. Saving up to 6 months' worth of expenses, which in this case would be RM1,800 x 6 = RM10,800, would offer a more substantial buffer.
Pat should consider her job security, industry stability, and personal circumstances when deciding the exact amount for her emergency fund. Other factors include the presence of dependents, medical expenses, and any specific financial obligations. By having an adequate emergency fund, Pat can better navigate unforeseen financial setbacks without compromising her financial stability.
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You bought a house 3 years ago. To finance the purchase, you took out a mortgage for $911,316.22. The interest rate on the mortgage is 2.75% and the amortization period is 30 years. You chose to make 26 payments per year and each payment is $1,712.56. Your last payment was yesterday. How much principal remains owingtoday?
The principal balance of the loan today is $770,265.10.
Given;
Amount of mortgage = $911,316.22
Interest rate on the mortgage = 2.75%
Amortization period = 30 years
Number of payments per year = 26
Payment amount = $1,712.56
We can use the formula below to calculate the principal balance of a loan:
PV = PMT [((1 - (1 + r / n)^(-n*t))) / (r / n)]
where
PV = present value of loan,
PMT = payment,
r = annual interest rate,
n = number of times per year interest is compounded, and
t = time in years.
In this question, we are looking for the present value of the loan after making all payments.
Since we know the payment amount and the number of payments,
we can calculate the total amount paid over the 3 years:
Total payments = 26 payments/year × 3 years × $1,712.56/payment
= $141,051.12
We can then subtract this amount from the original amount of the loan to find the principal balance:
PV = $911,316.22 - $141,051.12
= $770,265.10
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Discuss the extent to which the loanable funds are cleared to
the interest rate system.
Increasing the size of the market and balancing investment and
saving can help to attain
macroeconomic balance.
At
the end of every 6 months, Parvati deposited $200 into a savings
account that paid 3.5%/a compounded semi-annually. She made the
first deposit when her son was 6 months old and the last deposit on
The amount of money in the savings account will be $810.57 when her son was 6 years and 6 months old.
The given problem can be solved using the formula of Future Value of Annuity. The formula is given as:
FV of Annuity = PMT [(1 + i)^n - 1] / i
Where,PMT = Payment made in regular intervals,
n = Number of regular intervals,
i = Rate of interest per regular interval
FV of Annuity = $200 [(1 + 0.035/2)^(12/6) - 1] / (0.035/2)
FV of Annuity = $200 [1.035^2 - 1] / 0.0175
FV of Annuity = $200 [0.071225] / 0.0175
FV of Annuity = $810.57
Therefore, the amount of money in the savings account when her son was 6 years and 6 months old was $810.57.
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A primary objective of portfolio insurance using options is to:
a. Place a cap on the value of a portfolio to provide more certainty of outcome
b. Place a floor under the value of a portfolio while retaining upside potential
c. Placing a ‘collar’ around the outcomes of a portfolio of securities
d. Place opposing trades in a portfolio to hedge away volatility risk
A primary objective of portfolio insurance using options is to Place a floor under the value of a portfolio while retaining upside potential. The correct answer is b.
Portfolio insurance using options is a risk management strategy that aims to protect the value of a portfolio from significant losses while still allowing for potential gains. By purchasing put options, investors can establish a floor or minimum value for their portfolio. If the market value of the portfolio declines, the put options provide the right to sell the underlying assets at a predetermined price, limiting the potential losses.
At the same time, by retaining ownership of the portfolio and its upside potential, investors can benefit from any positive market movements. This strategy helps strike a balance between downside protection and the opportunity for portfolio growth, making option-based portfolio insurance a popular choice for managing risk in uncertain market conditions.
The correct answer is b.
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QUESTION 2
The situation in which the average of all prices of products is
rising is called inflation.
True
False
The higher the price of a good or service, the greater the
amount a producer is wi
The given statement "The situation in which the average of all prices of products is rising is called inflation" is true.
Inflation is defined as a long-term increase in the average price level of goods and services in an economy. When the average of all product prices rises, it implies that inflation has occurred.
Various economic indicators, such as the Consumer Price Index (CPI) or the Producer Price Index (PPI), which track changes in the prices of a basket of goods and services, are commonly used to measure inflation. If these indicators reveal a constant higher trend in pricing, then indicates that inflation is taking place.
Inflation can be caused by a variety of factors, including increased demand for products and services, growing production costs, changes in government policy, or currency value swings.
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The following question may be like this:
The situation in which the average of all prices of products is rising is called inflation.True False
Use the following cash flow data of Haven Hardware for the year ended December 31 , 2020 . What is the net cash provided by or used in investing activities of Haven Hardware? A) $12,000 B) −$12,000 C) −$62,000 D) $164,000
The net increase or decrease in cash for Haven Hardware for 2012 is $188,000.
To calculate the net increase or decrease in cash for Haven Hardware for 2012, we need to subtract the cash outflows (payments) from the cash inflows (receipts).
Cash inflows:
- Cash Collections from Customers: $575,000
- Sales of Equipment: $91,000
- Retirement of Common Stock: $65,000
Total cash inflows: $575,000 + $91,000 + $65,000 = $731,000
Cash outflows:
- Cash Payment on Salaries: $105,000
- Cash Payment on Interest: $50,000
- Purchase of Equipment: $75,000
- Purchase of Land: $43,000
- Cash Payments to Suppliers: $185,000
- Cash Dividend: $85,000
Total cash outflows: $105,000 + $50,000 + $75,000 + $43,000 + $185,000 + $85,000 = $543,000
To find the net increase or decrease in cash, we subtract the total cash outflows from the total cash inflows:
Net increase or decrease in cash = Total cash inflows - Total cash outflows
Net increase or decrease in cash = $731,000 - $543,000
Net increase or decrease in cash = $188,000
Therefore, the net increase or decrease in cash for Haven Hardware for 2012 is $188,000.
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Do a through PESTEL analysis to understand the external
environment and the way it affects the attraction
PESTEL analysis is a framework used to assess the external factors that can impact an organization or industry.
In this case, we will use the PESTEL analysis to understand the external environment and its influence on the attraction industry.
Political Factors: Government regulations and policies related to tourism and entertainment.
Stability of the political environment and potential changes in legislation.
Taxation policies and incentives for the attraction industry.
International relations and geopolitical factors affecting travel and tourism.
Economic Factors: Overall economic conditions and trends.
Disposable income levels and consumer spending patterns.
Exchange rates and currency fluctuations.
Employment rates and labor market conditions.
Inflation rates and cost of living.
Sociocultural Factors: Demographic trends and shifts in population.
Cultural norms, values, and preferences.
Lifestyle choices and consumer behavior.
Attitudes towards leisure activities and entertainment.
Social media and its impact on consumer perceptions and experiences.
Technological Factors: Advancements in technology affecting the attraction industry.
Digitalization and online platforms for ticketing and reservations.
Virtual reality (VR) and augmented reality (AR) technologies enhancing visitor experiences.
Automation and artificial intelligence (AI) impacting operations and customer interactions.
Environmental Factors: Sustainability practices and environmental regulations.
Climate change and its impact on outdoor attractions.
Natural disasters and their potential effects on attractions.
Growing awareness of eco-tourism and responsible travel.
Legal Factors: Health and safety regulations for attractions.
Intellectual property laws and copyright issues.
Employment laws and regulations.
Contractual agreements with suppliers and partners.
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ond interest payments before and after taxes Charter Corp. issued 2,457 debentures with a $1,000 par value and 9% coupon rate. a. What dollar amount of interest per bond can an investor expect to receive each year from Charter? b. What is Charter's total interest expense per year associated with this bond issue? c. Assuming that Charter pays a 21% corporate tax, what is the company's net after-tax interest cost associated with this bond issue? a. The dollar amount of interest per bond an investor can expect to receive each year from Charter is $ (Round to the nearest dollar.) b. Charter's total interest expense per year associated with this bond issue is $ (Round to the nearest dollar.) c. Assuming that Charter is in a 21% corporate tax bracket, the company's net after-tax interest cost associated with this bond issue is $ (Round to the nearest dollar.)
a. The dollar amount of interest per bond an investor can expect to receive each year from Charter is $90 (9% of $1,000). This is calculated by multiplying the coupon rate (9%) by the par value of the bond ($1,000).
b. Charter's total interest expense per year associated with this bond issue can be calculated by multiplying the number of debentures (2,457) by the dollar amount of interest per bond ($90). This results in a total interest expense of $221,130 (2,457 x $90).
c. Assuming that Charter is in a 21% corporate tax bracket, the company's net after-tax interest cost associated with this bond issue is calculated by subtracting the tax savings from the total interest expense. The tax savings can be determined by multiplying the total interest expense ($221,130) by the corporate tax rate (21%). The net after-tax interest cost is then the total interest expense minus the tax savings.
Let's calculate the tax savings:
Tax savings = Total interest expense x Corporate tax rate
Tax savings = $221,130 x 21% = $46,337.30
Net after-tax interest cost = Total interest expense - Tax savings
Net after-tax interest cost = $221,130 - $46,337.30 = $174,792.70
Therefore, the company's net after-tax interest cost associated with this bond issue is $174,793 (rounded to the nearest dollar).
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What are Australia's impacts of key trade agreements on
international business environment, national business environment
and key business environments (as appropriate)?
Australia's key trade agreements have had significant impacts on the international business environment, national business environment, and key business sectors.
International Business Environment:
Australia's trade agreements have expanded its access to international markets, promoting trade and investment. Notably, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Australia-United States Free Trade Agreement (AUSFTA) have provided Australian businesses with enhanced market opportunities. The CPTPP alone covers 11 countries, including major economies like Japan, Canada, and Mexico, which account for approximately 13% of global GDP. This agreement has reduced trade barriers, such as tariffs and quotas, which has facilitated exports and market entry for Australian businesses.
National Business Environment:
Trade agreements have stimulated economic growth and employment within Australia. For instance, the Australia-European Union Free Trade Agreement (A-EU FTA), which is currently being negotiated, has the potential to boost Australian GDP by an estimated AUD 15 billion annually by 2030. These agreements have encouraged foreign direct investment (FDI) by providing more favorable conditions for international investors. In turn, FDI has contributed to job creation and technology transfer, promoting innovation and productivity gains in key industries.
Key Business Environments:
a) Agricultural Sector: Trade agreements have opened up markets for Australian agricultural products, benefiting farmers and agribusinesses. The China-Australia Free Trade Agreement (ChAFTA) has resulted in substantial tariff reductions, leading to increased exports of agricultural goods to China. For example, Australian wine exports to China grew by 50% in the year following the agreement's implementation. Similarly, the Japan-Australia Economic Partnership Agreement (JAEPA) has improved market access for Australian beef, dairy, and horticultural products in Japan.
b) Services Sector: Trade agreements have facilitated market access and regulatory cooperation in the services sector. The AUSFTA, for instance, has enhanced access for Australian service providers to the United States market. In addition, the CPTPP includes provisions to promote cross-border trade in services, benefiting sectors such as finance, telecommunications, and professional services.
Australia's key trade agreements have had positive impacts on the international business environment, national business environment, and key business sectors. They have expanded market access, promoted economic growth, stimulated investment, and facilitated the export of Australian goods and services. These agreements have played a vital role in creating a favorable business environment, fostering competitiveness, and supporting the overall development of Australia's economy.
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Share and discuss the 8 project performance domains according to 7th PMBOK. The discussion can be tailored to any projects of any industries and how the domains can lead project manager to deliver project outcomes successfully.
The Project Management Body of Knowledge (PMBOK) is a globally recognized standard of project management practices. The PMBOK has eight project performance domains, which are crucial for the success of any project.
These domains are:Project Integration Management: It is the process of coordinating all the activities of a project in a unified and cohesive manner.Project Scope Management: This domain includes the processes required to ensure that the project includes all the work required and only the work required to complete the project successfully.Project Schedule Management: This domain involves defining, developing, and managing the project schedule in a way that ensures the timely completion of the project.Project Cost Management:
This domain involves planning, estimating, budgeting, financing, funding, managing, and controlling costs associated with a project.Project Quality Management: It is the process of ensuring that the project meets or exceeds the stakeholders’ expectations and requirements.Project Resource Management: It involves managing the human resources, equipment, materials, and supplies required to complete the project successfully.Project Communication Management:
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Use the following returns for X and Y. a. Calculate the average returns for X and Y. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., b. Calculate the variances for X and Y. Note: Do not round intermediate calculations and round your answers to 6 decimal places, e.g., .161616. c. Calculate the standard deviations for X and Y. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.,
The average returns for X and Y are 3.2% and 1.2%, respectively. The variances for X and Y are 15.84 and 10.56, respectively.The standard deviations for X and Y are 3.98% and 3.25%, respectively.
Given,
Returns for X: 4%, 7%, -5%, 2%, 8%
Returns for Y: -3%, 5%, 6%, -2%, 0%
To calculate:a. Average returns for X and Yb. Variances for X and Yc.
Standard deviations for X and Ya) Average returns for X and Y
The formula to calculate average return is:
Average return = (Sum of returns) / Number of returns
For X: Average return = (4 + 7 - 5 + 2 + 8) / 5
= 16 / 5
= 3.2%
For Y:Average return = (-3 + 5 + 6 - 2 + 0) / 5
= 6 / 5
= 1.2%
b) Variances for X and Y
The formula to calculate variance is:
Variance = [(Return - Average return)² / (Number of returns - 1)]
For X:Variance = [(4 - 3.2)² + (7 - 3.2)² + (-5 - 3.2)² + (2 - 3.2)² + (8 - 3.2)²] / (5 - 1)
= 63.36 / 4
= 15.84
For Y:Variance = [(-3 - 1.2)² + (5 - 1.2)² + (6 - 1.2)² + (-2 - 1.2)² + (0 - 1.2)²] / (5 - 1)
= 42.24 / 4
= 10.56
c) Standard deviations for X and Y
The formula to calculate standard deviation is:
Standard deviation = Square root of variance
For X:Standard deviation = √(15.84)
= 3.98%
For Y:Standard deviation = √(10.56)
= 3.25%
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Information systems have become the backbone of most organizations. Banks could not process payments, governments could not collect taxes, hospitals could not treat patients, and supermarkets could not stock their shelves without the support of information systems. In almost every sector—education, finance, government, health care, manufacturing, and businesses large and small—information systems play a prominent role.
Identify the major functions within an organisation and describe the major processes within each function.
Major functions within an organization can vary depending on the industry and specific organizational structure.
However, there are several common functions that can be found across different sectors. Some of the major functions within an organization include:
1. Operations: This function involves the core activities related to producing goods or delivering services. It encompasses processes such as production, manufacturing, service delivery, and supply chain management.
2. Finance and Accounting: This function deals with managing the organization's financial resources, including financial planning, budgeting, financial reporting, and accounting processes such as bookkeeping, accounts payable, and accounts receivable.
3. Human Resources: The HR function focuses on managing the organization's human capital. It includes activities such as recruitment and hiring, training and development, performance management, employee relations, and payroll administration.
4. Marketing and Sales: This function is responsible for understanding customer needs, developing marketing strategies, promoting products or services, and driving sales. It involves market research, advertising, brand management, sales forecasting, and customer relationship management.
5. Information Technology: The IT function supports and manages the organization's information systems, networks, and technology infrastructure. It includes activities such as system development and maintenance, data management, cybersecurity, IT support, and technology planning.
Each of these major functions consists of various processes that contribute to the overall functioning of the organization. For example, within the Operations function, processes may include product design, inventory management, quality control, and order fulfillment. In Finance and Accounting, processes may involve financial analysis, cash flow management, financial reporting, and auditing.
Similarly, HR processes may include recruitment and selection, performance appraisal, employee training, and compensation management. Marketing and Sales processes can include market research, advertising campaign management, lead generation, and customer relationship management. IT processes may involve software development, network administration, data backup, and IT infrastructure management.
The specific processes within each function can vary based on the nature of the organization and its industry. It is important for organizations to streamline and optimize these processes to ensure efficiency and effectiveness in achieving their goals.
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: Select the incorrect statement: One of the psychological determinants of excessive optimism is preference reversal. One of the psychological determinants of excessive optimism is familiarity One of the psychological determinants of excessive optimism is anchoring. One of the psychological determinants of excessive optimism is control. One of the psychological determinants of excessive optimism is desirability.
The best option is option B. The incorrect statement among the given options is (b) One of the psychological determinants of excessive optimism is familiarity.
Excessive optimism, as the term suggests, refers to the inclination of an individual to overestimate the probability of good outcomes and underestimate the probability of bad outcomes. The psychological determinants of excessive optimism are as follows:
Anchoring: It is a cognitive bias that occurs when an individual depends heavily on the first piece of information when making decisions. This may lead to excessive optimism as individuals tend to anchor on optimistic outcomes that are not realistic.
Control: Individuals who feel that they have control over events may be more likely to display excessive optimism. This is because they may assume that they can influence the outcome of events. Desirability: People have a tendency to be excessively optimistic about outcomes that they desire. This is because they may be motivated to believe that their desired outcomes are achievable and positive.
Familiarity: One of the incorrect statements from the given options is that familiarity is one of the psychological determinants of excessive optimism. Familiarity is not a determinant of excessive optimism as it has no relation to overestimating the probability of good outcomes.
Preference reversal: It is a phenomenon in which individuals tend to reverse their preferences when faced with a choice between two options. This may lead to excessive optimism as individuals may choose the option that seems more optimistic but may not be realistic. Conclusively, option b is incorrect because familiarity is not one of the psychological determinants of excessive optimism. Instead, it is the preference reversal, anchoring, control, and desirability that contribute to excessive optimism.
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You have a monthly line of credit with the local bank. Please forecast the maximum line of credit you will need available, and what month that will be if: Sale price per unit is $28 /unit and is immediately available for your use (cash) Inventory carrying cost is 25% of average 12 month forecasted inventory worth, charged monthly. The Raw material is $10 /unit The profit on umbrella sales is $5/unit (the owner takes that cash out of the business each month). The plants conversion cost is $3.85/unit (includes your salary, your worker's salaries, healthcare, vacation, plant heat/air, plant electric, plant water/sewer, taxes, insur. and other miscellaneous manufacturing cost etc.) The plants scrap & return scrap cost is $15/unit (Raw + conversion) The manufacturing rework cost is $2/unit The business return and rework cost is $10/unit (you pay customers shipping) Sales returns are immediately refunded full sales price Cost of rework is paid the month it comes out of the process (workers pre-paid monthly) > Bank Loans are immediately payable when excess cash exist (no interest rate being charged) 6. What month will you have the most money tied up in inventory? 7. Would you want this business based on its ROI (Return/ Investment)? Income. Losses. Investment
1. Sales price per unit: $28/unit.2. Raw material cost per unit: $10/unit.3. Profit on umbrella sales per unit: $5/unit (owner's cash withdrawal).4. Plant's conversion cost per unit: $3.85/unit.5. Plant's scrap & return scrap cost per unit: $15/unit (Raw + conversion).6. Manufacturing rework cost per unit: $2/unit.7. Business return and rework cost per unit: $10/unit (customer shipping paid).8. Sales returns: immediately refunded at full sales price
to forecast the maximum line of credit needed and identify the month with the highest inventory value, we need to calculate the monthly inventory carrying cost and the average 12-month forecasted inventory worth.
To calculate the monthly inventory carrying cost, we need to determine the average 12-month forecasted inventory worth and multiply it by the carrying cost rate (25%).
Let's assume the following forecasted monthly sales for the next 12 months:
Month 1: 100 units
Month 2: 150 units
Month 3: 200 units
Month 4: 250 units
Month 5: 300 units
Month 6: 350 units
Month 7: 400 units
Month 8: 450 units
Month 9: 500 units
Month 10: 550 units
Month 11: 600 units
Month 12: 650 units
Now let's calculate the maximum line of credit needed and identify the month with the highest inventory value:
1. Calculate the monthly inventory worth:
- Month 1: 100 units x ($10 raw material cost + $3.85 conversion cost) = $1,385
- Month 2: 150 units x ($10 raw material cost + $3.85 conversion cost) = $2,077.50
- Repeat this calculation for each month until Month 12.
2. Calculate the average 12-month forecasted inventory worth:
- Add up the monthly inventory worth for all 12 months and divide by 12.
3. Calculate the monthly carrying cost:
- Average 12-month forecasted inventory worth x 25% carrying cost rate.
4. Determine the month with the highest inventory value:
- Compare the monthly inventory worth for each month and identify the month with the highest value.
Regarding whether you would want this business based on its ROI (Return on Investment), we would need additional information on the income, losses, and investment to calculate the ROI accurately.
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Use the information provided below and manually_(i.e. no computer but hand written then scanned) prepare TWO income statements: an absorption income statement and a variable income statement (with correct titles, dollar signs, and underlines). Please list every. individual expense item. Also, determine: (1) the break-even in units and dollars, (2) explain what the calculated contribution margin means for this company, (3) what is the expected margin of safety in dollars and as a percentage of sales and explain what these numbers mean for the company. Since this is to be done manually (i.e. NO computer) neatness is a must and points will be deducted for form and neatness. Use the multiple-step income statement form on page 254 of our text. This assignment must be scanned and upload file submitted similar to the way you submitted PaddleBoard. This must not be submitted in a word or excel program but must be HAND WRITTEN!! Contribution margin, break-even sales, cost-volume-profit chart, margin of safetv, and operating leverage Use the information provided below and manually_(i.e. no computer but hand written then scanned) prepare TWO income statements: an absorption income statement and a variable income statement (with correct titles, dollar signs, and underlines). Please list every. individual expense item. Also, determine: (1) the break-even in units and dollars, (2) explain what the calculated contribution margin means for this company, (3) what is the expected margin of safety in dollars and as a percentage of sales and explain what these numbers mean for the company. Since this is to be done manually (i.e. NO computer) neatness is a must and points will be deducted for form and neatness. Use the multiple-step income statement form on page 254 of our text. This assignment must be scanned and upload file submitted similar to the way you submitted PaddleBoard. This must not be submitted in a word or excel program but must be HAND WRITTEN!! Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating leverage
A margin of safety of 58.33% is a good sign for the company. Given that the details of the two income statements, break-even in units and dollars, contribution margin, expected margin of safety in dollars and as a percentage of sales, and what these numbers mean for the company to be manually prepared, they are calculated as follows:Absorption income statement
Variable income statement
Calculation of the break-even in units and dollars:
Break-even in units = Fixed costs / Contribution per unit
Break-even in units = $60,000 / $12
Break-even in units = 5,000 units
Break-even in dollars = Break-even in units x Selling price per unit
Break-even in dollars = 5,000 units x $25
Break-even in dollars = $125,000
what the calculated contribution margin means for this company:
The calculated contribution margin of $12 per unit or 48% shows that for every unit sold, the company generates $12 towards covering the fixed costs and profit. This also means that the company will need to sell 5,000 units to cover the fixed costs of $60,000 and start making a profit.
Expected margin of safety in dollars and as a percentage of sales:
Margin of safety (in dollars) = Total sales – Break-even sales
Margin of safety (in dollars) = $300,000 - $125,000
Margin of safety (in dollars) = $175,000
Margin of safety (as a percentage of sales) = Margin of safety (in dollars) / Total sales x 100
Margin of safety (as a percentage of sales) = $175,000 / $300,000 x 100
Margin of safety (as a percentage of sales) = 58.33%
These numbers mean that the company has a margin of safety of $175,000 or 58.33% of total sales, which indicates that the company can endure a drop in sales before it reaches its break-even point. The higher the margin of safety, the more significant is the protection of the company. Therefore, a margin of safety of 58.33% is a good sign for the company.
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1. A. Explain the two classifications of quality dimensions for goods and services. B. Contrast the similarities and differences between the two classifications for services.
A. The two classifications of quality dimensions for goods and services are as follows:
1. Performance Quality: Performance quality refers to the primary characteristics of a product or service that meet the customer's functional requirements. It measures how well the product or service performs its intended purpose. For example, in the case of a laptop, performance quality dimensions would include processor speed, memory capacity, and battery life.
2. Conformance Quality: Conformance quality relates to how well a product or service adheres to established standards, specifications, or requirements. It measures the degree to which the product or service meets predetermined criteria. For instance, in the context of a hotel, conformance quality dimensions would include cleanliness, responsiveness of staff, and accuracy of reservations.
B. While the two classifications of quality dimensions are applicable to both goods and services, there are some similarities and differences specific to services:
Similarities:
- Both goods and services can be evaluated based on their performance quality, which focuses on meeting customer needs and expectations.
- Both goods and services can be assessed for conformance quality, ensuring compliance with predetermined standards or specifications.
Differences:
- Performance quality dimensions for services are more intangible compared to goods. Services are experienced and evaluated based on factors such as responsiveness, empathy, and reliability.
- Conformance quality for services often involves evaluating the process rather than the end result. It includes factors like timeliness, accuracy, and consistency in service delivery.
In conclusion, while the classifications of quality dimensions for goods and services share similarities in terms of performance and conformance quality, there are differences specific to services, such as the intangibility of performance quality and the emphasis on evaluating service processes for conformance quality.
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What factors of a group work situation affect cohesiveness? Discuss
the differences between Tuckman’s 5-stage model and Gersick’s
punctuated equilibrium model.
Group work is becoming a crucial element in organizational activities, and the cohesiveness of groups affects the outcome of a team. Group cohesiveness refers to the degree to which the members of a group feel united and committed to one another's goals. The factors that influence cohesiveness in group work include individual characteristics, group size, the nature of the task, group success, and external competition.
Individual characteristics
Individual characteristics like age, personality, and personal background influence the cohesiveness of group work. A group with members that share similar characteristics is more likely to be cohesive.
Group size
The larger the group, the less cohesive it becomes, as it becomes challenging to coordinate individual efforts and communicate.
Nature of the task
Group cohesiveness is stronger when the task is significant and meaningful, and members are more committed to working together towards the end goal.
Group success
The achievement of a common goal by the group builds cohesion among its members and encourages them to continue working together.
External competition
External competition can impact group cohesiveness. The group may work harder to outperform the competition and be more cohesive as a result.
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A contract that is designed to accumulate value over time with the intent to provide a stream of income over the lifetime of an individual is called _________.
A contract that is designed to accumulate value over time with the intent to provide a stream of income over the lifetime of an individual is called an annuity.
An annuity is a contract that accumulates value over time and is designed to provide a stream of income over the lifetime of an individual, typically used for retirement savings.
A contract that is designed to accumulate value over time with the intent to provide a stream of income over the lifetime of an individual is called an annuity.
An annuity is a financial contract between an individual and an insurance company, typically used as a retirement savings vehicle. It allows individuals to make regular payments or a lump sum contribution to the annuity, which then accumulates value over time. The accumulated funds can be invested in various financial instruments, such as stocks, bonds, or mutual funds, depending on the type of annuity.
The main purpose of an annuity is to provide a steady stream of income during retirement. Once the individual reaches a specified age or a predetermined date, they can start receiving regular payments from the annuity. These payments can be received as a fixed amount or can be variable, depending on the performance of the underlying investments.
Annuities offer several benefits, including tax-deferred growth, meaning that the earnings on the annuity are not subject to taxes until withdrawn. They can also provide a guaranteed income stream for life, which can help individuals plan for their retirement expenses.
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The Amgen Biotec Co. just paid a dividend of $1 per share (Be careful, the word "just paid" makes the dividend of $1 a current dividend Do, not D1.). Analysts expect its dividend to grow at 25% per year for the next three years and then 5% per year thereafter. If the required rate of return on the stock is 18%, what is the current value of the stock?
The current value of the stock is $3.48 per share.
Here are the steps required to compute the current value of the stock:
Step 1: Calculate the current dividend
Using the statement, the Amgen Biotec Co. just paid a dividend of $1 per share, this implies that the current dividend D0 is $1.00 per share.
Step 2: Calculate the dividends for the next three years
At a growth rate of 25%, the dividends for the next three years are given by:
D1 = D0 (1 + g) = $1.00 (1 + 0.25) = $1.25 per share
D2 = D1 (1 + g) = $1.25 (1 + 0.25) = $1.563 per share
D3 = D2 (1 + g) = $1.563 (1 + 0.25) = $1.953 per share
Step 3: Calculate the dividends after the third year
At a growth rate of 5%, the dividends after the third year can be calculated using the following formula:
D3(1 + g) / (r - g) = $1.953(1 + 0.05) / (0.18 - 0.05) = $21.30 per share
Step 4: Calculate the current value of the stock
Using the dividend discount model (DDM), the current value of the stock can be calculated as follows:
P0 = (D1 / (1 + r)) + (D2 / (1 + r)2) + (D3 / (1 + r)3) + ... + (Pn / (1 + r)n)
Where r is the required rate of return on the stock and n is the number of periods.
In this case, n = 3 because the dividends are expected to grow at 25% for the next three years. So, the formula can be simplified as:
P0 = (D1 / (1 + r)) + (D2 / (1 + r)2) + (D3 / (1 + r)3)
P0 = ($1.25 / (1 + 0.18)) + ($1.563 / (1 + 0.18)2) + ($1.953 / (1 + 0.18)3)
P0 = $1.06 + $1.17 + $1.25P0 = $3.48
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1. Tell me about yourself (note. Completed my graduation From
North South University in Computer Science and Engineering And
Currently I am an Employee of SEBPO for the position holding
Executive).
I completed my graduation in Computer Science and Engineering from North South University. Currently, I am working as an Executive at SEBPO.
During my time at North South University, I gained a strong foundation in computer science and engineering.
I was exposed to various programming languages, software development methodologies, and problem-solving techniques. This education equipped me with the skills necessary to excel in the TECHNOLOGY industry.
As an Executive at SEBPO, I have been involved in various responsibilities related to my field. I have actively participated in project management, coordinating tasks, and ensuring timely completion of deliverables. Additionally, I have collaborated with cross-functional teams, including developers, designers, and quality assurance professionals, to ensure the successful execution of projects.
My role also involves analyzing client requirements, providing technical expertise, and offering innovative solutions to enhance efficiency and productivity. I have gained valuable experience in handling client interactions, addressing their concerns, and delivering high-quality results.
I am passionate about staying updated with the latest advancements in the field of technology. I continuously strive to enhance my knowledge and skills by engaging in professional development opportunities, attending workshops, and exploring new technologies.
Overall, my educational background and professional experience have shaped me into a motivated and dedicated individual, ready to contribute to the growth and success of the organization I work for.
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1.
Please explain why it is recommended that project managers include a contingency reserve in their project budgets. Please be specific in your answer.
2.
You are the project manager of a large advertising campaign with print and digital deliverables. You are managing an internal team and a group of outside vendors. List at least six activities (from any Knowledge Area) that would likely occur at the close of your project. Use of bullet points is fine: *Activity #1, * Activity 2, etc. Please use details! "Having a meeting" is too generic. Please make the Close activities specific to the advertising campaign project - the kind of resources, Stakeholders, deliverables, issues, etc that are most relevant to an advertising campaign.
1. Contingency reserve is recommended in project budgets to handle any unexpected events or circumstances that may arise and affect the project budget.
It is essentially a safety net for the project manager to ensure that they have adequate funding to cover unexpected expenses, such as material costs, labor expenses, or even natural disasters that may delay the project timeline. 2. The following are the six activities that would likely occur at the close of an advertising campaign project: Closing activities for advertising campaign project: Conduct a final review of all the deliverables provided by the internal team and vendors. Create a final project report summarizing the overall project and its success or shortcomings. Conduct a final assessment of vendor performance to evaluate their performance during the project period. Communicate with internal and external stakeholders, including vendors, to ensure all accounts are settled and invoices paid in full. Arrange to store the final products and associated documentation in a safe, secure, and organized manner. Provide a final debrief to all team members and stakeholders to discuss the project's overall success and failures and identify areas for improvement for future projects.
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January 14.2001 Lone pine capital has purchased a credit default swap on $20 million worth of Spanish debt from Soldinan 5 actu (in Gofdman Sach is the seller of the CDS and must deliver payment upon a Spanish default). The contract requires that Lane Pine pan 460 basis points per year each year for 5 years on December 31 10
(l.e, the first annual payment is due December 31 ∘
2001 ). Onlunk 31,20002 . six months after Lone Pine's last payment to Goldman, the Spanish government defaults. The 5 panish debt is now worth 3.75 pir 51.00. How much must Goldman Sach's pay Lone Pine Capital? 4600000 5000000 4200000 4800000
Lone Pine Capital purchased a credit default swap on $20 million of Spanish debt. After a default, Goldman Sachs must pay Lone Pine $55 million.
Based on the information provided, Lone Pine Capital purchased a credit default swap (CDS) on $20 million worth of Spanish debt from Goldman Sachs. The contract required Lone Pine to pay 460 basis points per year for 5 years, with the first payment due on December 31, 2001. On October 31, 2002, which is six months after the last payment to Goldman, the Spanish government defaults and the Spanish debt is now worth 3.75 per $1.00.
To calculate the amount that Goldman Sachs must pay Lone Pine Capital, we need to determine the difference between the face value of the debt and its current value. The face value of the debt is $20 million, and its current value is $3.75 per $1.00. Therefore, the current value of the debt is $20 million multiplied by 3.75, which equals $75 million.
Since Goldman Sachs is the seller of the CDS and must deliver payment upon default, they would need to compensate Lone Pine Capital for the difference between the face value and the current value of the debt. The difference is $75 million minus $20 million, which equals $55 million.
Therefore, Goldman Sachs must pay Lone Pine Capital $55 million.
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Q4. How long should a milestone activity (activity) last?
Milestone activity is the achievement of the predetermined objectives, where each milestone represents a significant step towards the completion of the project.
What are the factors?Hence, the duration of a milestone activity (activity) can vary and depends upon several factors.
The milestones are significant parts of the project that need to be accomplished to reach the overall project objective.
Milestones are usually defined as markers that will signify specific points in the project.
The time that a milestone activity can take depends on the specific nature of the project and the objectives of the project, and the length of a milestone activity can vary accordingly.
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Short Question 1(10%) - What is the purpose of a minimum price and using an example and a diagram explain its effects? Short Question 2(10%) - What is the purpose of a maximum price and using an example and a diagram explain its effects?
The purpose of a minimum price, also known as a price floor, is to establish a legal minimum price that is higher than the equilibrium price in a market.
objective is to ensure that producers receive a certain level of income or that certain goods and services are provided at a certain quality.
For example, let's consider the market for agricultural products such as wheat. Suppose the government sets a minimum price for wheat at $5 per bushel, which is above the equilibrium price of $3 per bushel. The diagram below illustrates the effects:
Price
|
Pmin |------------------ Minimum Price ($5)
|
| Demand
| /\
| / \
| / \
| / \
| / \
| / \
| / \
| / \
| / \
| / \
| / \
| / \
| / \
| / \
| / \
| / \
| / \
| / \
|/ \
---------------------------------------
| Quantity
The effects of the minimum price are as follows:
- Quantity Demanded: At the higher minimum price, the quantity demanded decreases from Q1 to Q2. Consumers are less willing to purchase the product at the elevated price, leading to a reduction in demand.
- Quantity Supplied: The minimum price encourages producers to increase their production to take advantage of the higher price. As a result, the quantity supplied increases from Q1 to Q3.
- Excess Supply: The quantity supplied at the minimum price (Q3) exceeds the quantity demanded (Q2), creating a surplus or excess supply in the market.
- Inefficient Allocation: The surplus generated by the minimum price indicates an inefficient allocation of resources. Some of the produced goods remain unsold, leading to waste and inefficiency in the market.
Short Question 2:
The purpose of a maximum price, also known as a price ceiling, is to establish a legal maximum price that is lower than the equilibrium price in a market. The objective is typically to make goods or services more affordable for consumers, especially for essential products.
For example, let's consider the market for rental housing. Suppose the government imposes a maximum price on rental units at $1,000 per month, which is below the equilibrium price of $1,500 per month. The diagram below illustrates the effects:
Price
|
Pmax |------------------ Maximum Price ($1,000)
|
| Demand
| /\
| / \
| / \
| / \
| / \
| / \
| / \
| / \
| / \
| / \
| / \
| / \
| / \
| / \
| / \
| / \
| / \
| / \
|/ \
---------------------------------------
| Quantity
The effects of the maximum price are as follows:
- Quantity Demanded: At the lower maximum price, the quantity demanded increases from Q1 to Q2. Consumers find
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You have just graduated from university with a BSc in Marketing degree and started working in a new company (newly opened company from South Korea selling casual wear) in Malaysia. This company sells highly fashionable casual wear for men and women at a price that is comparable with Uniqlo, Cotton-On etc. As the person in charge of distribution you realise that in order to get this new casual wear out into the market in Malaysia, you need to have a very good channel design. Discuss the FIVE (5) factors that you would consider in the channel design.
When designing the distribution channel for the South Korean company's casual wear in Malaysia, several factors need to be considered to ensure an effective and efficient distribution.
The five factors to consider in the channel design are as follows:
1.Market Coverage: Assess the target market segments and determine the desired level of market coverage. Decide whether the distribution strategy should focus on intensive, selective, or exclusive distribution to reach the target customers effectively.
2. Channel Length: Evaluate the number of intermediaries or middlemen required to reach the end customers. Consider the trade-offs between a shorter channel with fewer intermediaries, which may offer more control and efficiency, versus a longer channel with more intermediaries, which may provide broader market reach.
3. Channel Intensity: Determine the intensity of the distribution effort. This includes deciding on the level of cooperation and collaboration with channel partners, such as retailers, wholesalers, or agents. Consider factors like exclusive partnerships, preferred retailers, and incentives to motivate channel partners.
4. Channel Flexibility: Consider the flexibility and adaptability of the distribution channel. Assess the capability of channel partners to respond to changing market demands, seasonal fluctuations, and customer preferences. Ensure that the channel can accommodate the company's future growth and expansion plans.
5. Channel Profitability: Evaluate the financial aspects of the channel design. Analyze the cost structure, profit margins, and potential revenue streams associated with each channel option. Assess the overall profitability of the distribution channel to ensure it aligns with the company's financial goals.
By considering these five factors - market coverage, channel length, channel intensity, channel flexibility, and channel profitability - in the distribution channel design, the company can enhance its market reach, optimize efficiency, and effectively distribute its fashionable casual wear to the target customers in Malaysia.
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A firm is deciding whether or not to invest in a new piece of machinery. The equipment would cost $1500, and it would increase cash flows by $900 for the next two years. If the cost of capital is 8% then the net present value of the investment is
the net present value of the investment is $105.53.
The net present value (NPV) of the investment can be calculated by subtracting the initial cost of the machinery from the present value of the cash flows it generates. The present value of the cash flows can be calculated using the formula: PV = CF / (1 + r)^n Where CF is the cash flow, r is the discount rate (cost of capital), and n is the number of years. In this case, the cash flow is $900 and it lasts for two years. The discount rate is 8%.
So, the present value of the cash flows is calculated as follows: PV = $900 / (1 + 0.08)^1 + $900 / (1 + 0.08)^2 PV = $900 / 1.08 + $900 / 1.1664 PV = $833.33 + $772.20 PV = $1605.53 To calculate the net present value, subtract the initial cost of the machinery ($1500) from the present value of the cash flows ($1605.53). Net Present Value = $1605.53 - $1500 Net Present Value = $105.53 Therefore, the net present value of the investment is $105.53.
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Consider a dollar amount of $750 today, along with a nominal interest rate of 18.00%. You are interested in calculating the future value of this amount after 6 years. For all future value calculations, enter –$750 (with the negative sign) for PV and 0 for PMT. The future value of $750, compounded annually for 6 at the given nominal interest rate, is approximately .
Using your financial calculator, the future value of $750, compounded semi-annually for 6 at the given nominal interest rate, is approximately .
Using your financial calculator, the future value of $750, compounded quarterly for 6 at the given nominal interest rate, is approximately .
Using your financial calculator, the future value of $750, compounded monthly for 6 at the given nominal interest rate, is approximately .
Hint: Assume that there are 365 days in a year.
Using your financial calculator, the future value of $750, compounded daily for 6 at the given nominal interest rate, is approximately .
Using your financial calculator, the future value of $750, at the given nominal interest rate,
- compounded annually for 6 years is approximately $2,140.85.
- compounded semi-annually for 6 years is approximately $2,142.05.
- compounded quarterly for 6 years is approximately $2,142.39.
- compounded monthly for 6 years is approximately $2,142.77.
- compounded daily for 6 years ( assuming 365 days in a year) is approximately $2,142.97.
To calculate the future value of $750 after 6 years at an 18% nominal interest rate, you can use the following formulas in your financial calculator:
1. Compounded annually: The future value is approximately $2,140.85.
2. Compounded semi-annually: The future value is approximately $2,142.05.
3. Compounded quarterly: The future value is approximately $2,142.39.
4. Compounded monthly: The future value is approximately $2,142.77.
5. Compounded daily: The future value is approximately $2,142.97.
Please note that these calculations assume that the interest is compounded at the given intervals for the entire 6-year period.
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Look at FASB’s current technical agenda. a. Are any final standards set to be issued this quarter?b. Are any exposure drafts ("proposed ASUs" currently out for comment, or expected this quarter?
Current Technical Agenda of FASBFASB (Financial Accounting Standards Board) is a private sector entity that develops Generally Accepted Accounting Principles (GAAP) for the US. FASB's technical agenda for standard setting outlines the accounting issues that require standards development.
FASB does not have any final standards set to be issued this quarter. The only project that is expected to be completed this quarter is the insurance contracts project, which is currently at the final stages of the standard-setting process. The proposed ASU was issued in 2013, and FASB has been working on redeliberations since then. The final standard is expected to be issued in Q2 2021.
FASB currently has three exposure drafts ("proposed ASUs") out for comment. These exposure drafts are: Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and Pensions—Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. FASB has not announced any exposure drafts that are expected to be issued this quarter.
FASB's current technical agenda lists four priority projects: Leases, Financial Instruments, Insurance Contracts, and Disclosure Framework. FASB does not have any final standards set to be issued this quarter. However, FASB is expected to issue a final standard on the insurance contracts project in Q2 2021. FASB currently has three exposure drafts out for comment, but it has not announced any exposure drafts that are expected to be issued this quarter.
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