Answer:
WACC (CAPM) 5.2%
WACC (ICAPM) 5.03%
Explanation:
The weighted average cost of capital is
Ke * E/ E+D + Kd * (1 -t) D / E+D
Ke = Rf + (Rm - Rf) * [tex]\beta[/tex]
Ke (CAPM) = 3.50% + (8% - 3.50%) * 1.12
Ke (CAPM) = 7.532%
Kd (CAPM) = Kd (1-t)
Kd (CAPM) = 7.60 (1-39%)
Kd (CAPM) = 4.636%
WACC (ICAPM) : 7.532 * 20% + 4.636 * 80%
WACC (CAPM) = 5.2164%
Ke (ICAPM) = 3.50% + (8% - 3.50%) * 0.86
Ke (ICAPM) = 6.596%
Kd (ICAPM) = Kd (1-t)
Kd (ICAPM) = 7.60 (1-39%)
Kd (ICAPM) = 4.636%
WACC (ICAPM) : 6.596 * 20% + 4.636 * 80%
WACC (CAPM) = 5.03%
The company has an opportunity to sell 40,000 additional units at $12 per unit. The additional sales would not affect its current expected sales. Direct materials and labor costs per unit would be the same for the additional units as they are for the regular units. However, the additional volume would create the following incremental costs: (1) total overhead would increase by 16% and (2) administrative expenses would increase by $172,000.
Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $13 per unit.
Answer:
$1,576,000
Explanation:
The computation of the combined total net income is shown below:
Particulars Normal volume Additional volume Combined total
Sales $6,000,000 $480,000 $6,480,000
(40,000 × $12)
Less: Costs and expenses
Direct material $800,000 $80,000 $880,000
($800,000 ÷ 400,000 × 40,000)
Direct labour $1,600,000 $160,000 $1,760,000
($1,600,000 ÷ 400,000 × 40,000)
Overhead $400,000 $64,000 $464,000
($400,000 × 16%)
Selling expenses $600,000 $0 $600,000
Administrative
expense $1,028,000 $172,000 $1,200,000
Total costs
and expenses $4,428,000 $476,000 $4,904,000
Incremental
income
(loss) from
new busines $1,572,000 $4,000 $1,576,000
We assume reduced price of $12 per unit instead of $13 per unit
Suppose only two airlines, United and Delta provide flights between Atlanta and Greenville. Both firms must choose whether to advertise or not advertise.The advertising straategies with corresponding profits are depicted in the payoff matrix. United Aitlines profits are in blue and Deltas Airlines are in red.United Airlines dominant strategy is advertise or not advertise ( choose one),and Delta donminant strategy is to advertise or not advertise (choose ones)What is the Nash equilibrium for this game? (choose one)a) United will choose to advertise and Delta will choose not to advertiseb) United will choose not to advertise and Delta will choose to advertisec) United and Delta will both choose to advertised) United and Delta will both choose not to advertise
Answer and Explanation:
(1) A dominant strategy is a strategy selected by one player regardless of the other player 's strategy.
According to the question
United dominant strategy is to Advertise, as it contains higher payoff ($9,000 > $1,000 and $16,000 > $11,000).
While on the other hand, Delta dominant strategy is to Advertise, as it contains higher payoff ($9,000 > $1,000 and $16,000 > $11,000).
(2) If Delta advertises, the best option for United is to advertise as the payout is higher($9,000 > $1,000).
If Delta does not advertise, the better option for United is to advertise as the payoff is higher($16,000 > $11,000).
The best strategy for Delta as United Advertises is to advertise because the payoff is higher ($9,000 > $1,000).
If United doesn't advertise, the best strategy for Delta is to advertise as the payoff is higher($16,000 > $11,000).
Hence Nash equilibrium is: (United Advertises, Delta Advertises)
PLEASE HELP urgent The division is evaluating a project requiring a capital cost of $254,000. The project has an estimated life of four years and no salvage value. The estimated net income and net cash flow from the project are as follows: look at screenshot* The company's minimum desired rate of return is 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is .893, .797, .712, and .636, respectively. 1. Determine the average rate of return on investment 2. Determine the Net Present Value
Answer:
1. Average rate of return on investment = 12.11%
2. Net Present Value = – $14,845.09
Explanation:
1. Determine the average rate of return on investment
Average rate of return on investment is the total net incomes from an investment divided the estimated life of the investment, and this is then divided by the cost of acquisition of the investment. This can be calculated for this question as follows:
Average income = Total net income / Estimated life = 123,000 / 4 = $30,750
Average rate of return on investment = Average income / Acquisition cost = $30,750 / $254,000 = 0.1211, or 12.11%
2. Determine the Net Present Value
Net present value is the difference between the present value of the acquisition of an investment and sum of the present values of all the net flows from the investment over its useful life.
Note: See the attached excel file to see how the net present value (NPV) is calculated.
Net Present Value = – $14,845.09
Conclusion
Since the Net Present Value is negative, it therefore implies the project is not a good investment.
Morrow Company uses the high-low method to estimate the cost function. The information for 2020 is provided below: Machine-hours Labor Costs Highest observation of cost driver 900 $36,000 Lowest observation of cost driver 100 $14,000 What is the estimated total cost when 450 machine-hours are used
Answer:
Total cost at 450 machine hours = $23625
Explanation:
The high-low method is used to calculate the variable cost per unit element in a mixed cost. A mixed cost is a cost which is made up of both the fixed and the variable cost. The formula for variable cost per unit is,
Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity units - Lowest activity units)
Variable cost per unit = (36000 - 14000) / (900 - 100)
Variable cost per unit = $27.5
Thus, the fixed element is = 36000 - (27.5 * 900)
Fixed cost element = $11250
Thus, the cost equation is,
Total cost = 27.5x + 11250
Where x is the number of machine hours.
Total cost at 450 machine hours = 27.5 * 450 + 11250
Total cost at 450 machine hours = $23625
Question 16 (3 points) The 2011 and 2012 Balance Sheets for Jacob, Inc. contained the following entries: 12/31/201112/31/2012 Accounts receivable$206$116 Inventories$590$603 Net fixed assets$102$307 Accounts payable$329$333 Jacob had materials purchases in 2011 of $1,689 and materials purchases in 2012 of $2,770 . What did Jacob record as Cost of Goods Sold (COGS) on its 2012 income statement
Answer:
$2,857
Explanation:
Cost of goods sold (COGS) refers to the relevant cost incurred to acquire or produce the products being sold a company during a particular period.
The formula for calculating the COGS is as follows:
COGS = Beginning inventories + Purchases - Ending inventories
From the question, we have the following for 2012:
Beginning stock = $590
Purchases = $2,770
Ending inventory = 503
Therefore, we have:
COGS for 2012 = $590 + $2,770 - $503 = $2,857
Therefore, Jacob should record $2,857 as Cost of Goods Sold (COGS) on its 2012 income statement.
Ginny currently earns a (real or nominal) wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of sparkling water is $2.50 per gallon; in this case, Ginny (real or nominal) wage, in terms of the amount of sparkling water she can buy with her paycheck, is gallons of sparkling water per hour. When workers and firms negotiate compensation packages, they have expectations about the price level (and changes in the price level) and agree on a (real or nominal) wage with those expectations in mind. If the price level turns out to be higher than expected, a worker's (real or nominal) wage is than both the worker and employer expected when they agreed to the wage.
Ginny and her employer both expected inflation to be 4% between 2012 and 2013, so they agreed, in a two-year contract, that she would earn $12.00 per hour in 2012 and $12.48 per hour in 2013. However, suppose inflation between 2012 and 2013 actually turned out to be 5%, not 4%. For example, suppose the price of apple juice rose from $2.00 per gallon to $2.10 per gallon. This means that between 2012 and 2013, Ginny's nominal wage by___________ % , and her real wage by approximately____________ .
Answer:
since we are using this year as our base year, Ginny's real and nominal wage is $12 per hour
price of sparkling water $2.50 per gallon
Ginny can buy 4.8 gallons of sparkling water per hour of work
If the price level turns out to be higher than expected, a worker's real wage is LOWER than both the worker and employer expected when they agreed to the wage.
Ginny and her employer both expected inflation to be 4% between 2012 and 2013, so they agreed, in a two-year contract, that she would earn $12.00 per hour in 2012 and $12.48 per hour in 2013. However, suppose inflation between 2012 and 2013 actually turned out to be 5%, not 4%. This means that between 2012 and 2013, Ginny's nominal wage INCREASED by 4%, and her real wage by DECREASED BY approximately 0.92%.
Ginny's real wage in 2013 = $12.48 / 1.05 = $11.89
it decreased by ($11.89 - $12) / $12 = -0.92%
Street & Smith publishes the same baseball magazine with exactly the same stories but with 16 different covers to appeal to baseball fans in 16 different regions of the U.S. What is the market segmentation strategy?
Answer:
The answer is 'One product and multiple market segments'
Explanation:
The market segmentation strategy here is One product and multiple market segments.
The product is one product(the magazine story) and this one product (same story) covers 16 different regions of the U.S i.e the same product is selling in 17 market segments.
The advantage of this strategy is that it helps to avoid the additional costs of developing and producing additional versions of the product.
Choose the preferred sentence from each pair and justify your choice.
a. (1) Lindsay’s request to telecommute was denied, but she will begin a flextime schedule in two weeks.
(2) Although her request to telecommute was denied, Lindsay will begin a flextime schedule in two weeks.
Answer:
(2)
Explanation:
"Although" Implies that even though her request was denied, she will begin something else in two weeks. "But" makes it sound like a negative thing, even though it isn't
Expenses for a Pizza restaurant include raw material for pizza at $4.00 per slice, $116.00 as monthly rental and $45.00 monthly as insurance. Lost sale expense is considered to be $4.00 per unhappy customer. Leftover Pizza can be sold for $3. The restaurant is open 25 days in a month. Today the restaurant prepared 200.00 pizza slices and sells them for $10.00/slice. There was a party at a nearby office so the demand for pizza went up to 212.00 slices. How much profit did the restaurant earn today
Answer:
The restaurant earned a profit of $1145.56 which is approximately $1146
Explanation:
the formula is given as:
Q x (sale price – material cost) – ( rental + insurance)/day - loss
Q = 200
Sale price = $10
Material cost = $4
rental = $116
insurance = $45
lost sale expense = $4
day = 25
increased demand = 212
= 200(10 - 4) - (116 + 45)/25 - (212 - 200)4
= 200(6) - 6.44 - 48
= 1200 - 6.44 - 48
= $1145.56
This is approximately $1146
Xochi is a corporate PR consultant. She has many clients and would like to find a more efficient way to access and send information than by e-mail alone. What tool should Xochi use to search and manage this informatio
Answer:
Enterprise social media network.
Explanation:
Enterprise social media network is the use of social network to link people who share common interest. Enterprise social network could be internal to a business such as Yammer, communicator which are meant to communicate among employees or external to a business such as use of Google+ or other social media network platforms which connects a business to it's customers.
The advantage of Enterprise social media networks is that they can be searched such that people can follow, tag or view activity. Here, users can check and send messages conveniently and efficiently to people compare to email alone.
With regards to the above scenario, Xochi should use Enterprise social media network tool to search and manage information.
The opening balance of Company A is 25,000, and the repayment is scheduled for 1,000 per month at an annual interest rate of 5%. Use the average debt balance to calculate the interest payment. The closing balance of debt at the end of the month is _____ and the interest payment is _____.
Answer:
Closing balance of debt at the end of the month = $24,000
Interest payment = $102.08
Explanation:
The computation of closing balance of debt at the end of the month and the interest payment is shown below:-
Closing balance of debt at the end of the month = Opening balance of company A - Scheduled Repayment per month
= $25,000 - $1,000
= $24,000
Interest payment = Average Debt × Annual interest rate × 12 months
= (($25,000 + $24,000) ÷ 2) × 0.05 ÷ 12 months
= $102.08
Therefore we have applied the above formulas.
Motorzone offers replacement parts for old Volkswagen Beetles. The company calculates shipping charges based on shipping parts from Boston, even though some parts actually ship from St. Louis. Motorzone most likely practices ________ pricing.
Answer:
basing-point
Explanation:
Basing point pricing is a system used to establish prices in which the business charges a fixed amount for the product and an additional charge for the shipping that is determined according to the customer's distance from a certain place that is called the basing point. According to this, the answer is that Motorzone most likely practices basing-point pricing because they establish the shipping charges based on a pre-determined location even though some products are not in this place.
Dolan Company's accounting records reflect the following inventories:
Dec.31, 2013 Dec.31, 2012
Raw materials inventory $310,000 $260,000
Work in process inventory 300,000 160,000
Finished goods inventory 190,000 150,000
During 2013, $600,000 of raw materials were purchased, direct labor costs amounted to $500,000, and manufacturing overhead incurred was $480,000.
Dolan Company's total manufacturing costs incurred in 2013 amounted to________.
Answer:
cost of goods manufactured= $1,770,000
Explanation:
Giving the following information:
Dec.31, 2013 Dec.31, 2012
Raw materials inventory $310,000 $260,000
Work in process inventory 300,000 160,000
During 2013, $600,000 of raw materials were purchased, direct labor costs amounted to $500,000, and manufacturing overhead incurred was $480,000.
To calculate the cost of goods manufactured, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials used + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 300,000 + (310,000 + 600,000 - 260,000) + 500,000 + 480,000 - 160,000
cost of goods manufactured= $1,770,000
All projects are unique:________.
Select one:
A. Therefore all project management circumstances are equally unique.
B. So knowledge should not be transferred to avoid bias in future projects.
C. So knowledge cannot be transferred.
D. But they may have several common points.
Answer:
D. But they may have several common points
Explanation:
Although all projects are unique, they still share similar similarities. So knowledge can be transferred.
The following information is available for Elliot Company.
January 1, 2013 2013 December 31, 2013
Raw materials inventory $26,000 $30,000
Work in process inventory 13,500 22,200
Finished goods inventory 30,000 21,000
Materials purchased $170,000
Direct labor 220,000
Manufacturing overhead 180,000
Sales 800,00
Required:
Compute cost of goods manufactured $____________________
Answer:
The cost of goods manufactured is $557,300
Explanation:
In order to calculate the cost of goods manufactured we would have to make the following calculation:
cost of goods manufactured=Work in process inventory 1/1+Total manufacturing costs-Work in process 12/31
Work in process inventory 1/1)= $13,500
Total manufacturing costs=Direct materials used+Direct labor+Manufacturing overhead
Total manufacturing costs=166000+220000+180000=$566,000
Work in process 12/31=$22,200
Cost of goods manufactured=$13,500 +$566,000 -$22,200
Cost of goods manufactured= $557,300
The cost of goods manufactured is $557,300
Pick a well-known business organization that has received recent press coverage and that provides its annual reports at its Web site. From the information in the articles and annual reports, answer these questions: 1. What is(are) the main industry(ies) in which the company competes ?
Explanation:
The commercial company chosen is Amazon.com Inc, this is a multinational that operates in the areas of artificial intelligence, electronic commerce and computing. Amazon was founded in 1994 by Jeff Bezos, with the main objective of being a company that sells books on the internet, at that time the idea did not seem so promising, because the internet was little used worldwide, but Bezos saw there a opportunity and called itself the first virtual book store in the world, and began to be noted for the strategy of offering aggressive discounts, which made the company gain name and popularity.
The success strategy used by Bezos was to offer the customer an easy shopping service, focusing on their needs and offering a huge amount of titles available to the customer. Bezos' innovation strategy has made Amazon a pioneer in setting market standards for the entire internet.
The Morris Corporation has $350,000 of debt outstanding, and it pays an interest rate of 8% annually. Morris's annual sales are $1.75 million, its average tax rate is 30%, and its net profit margin on sales is 8%. If the company does not maintain a TIE ratio of at least 3 to 1, its bank will refuse to renew the loan and bankruptcy will result. What is Morris's TIE ratio? Do not round intermediate calculations. Round your answer to two decimal places.
Answer:
8.14 times
Explanation:
The computation of the Time interest earned ratio is shown below:
As we know that
Times interest earned ratio = (Earnings before interest and taxes) ÷ (Interest expense)
where,
Earnings before interest and taxes = Income before income tax for the year + Interest expense
But before tha, we need to do the following calculations
The interest amount is
= $350,000 × 0.08
= $28,000
The net profit is
= $1,750,000 × 8%
= $140,000
The EBIT is
= Profit before tax + interest expense
= $140,000 ÷ (1 - 0.30) + $28,000
= $200,000 + $28,000
= $228,000
And, the interest expense is $28,000
So, the TIE ratio is
= $228,000 ÷ $28,000
= 8.14 times
Waterway’s Market recorded the following events involving a recent purchase of merchandise:
Received goods for $75000, terms 1/10, n/30.
Returned $1100 of the shipment for credit.
Paid $400 freight on the shipment.
Paid the invoice within the discount period.
As a result of these events, the company’s inventory increased by:_______.
Answer:
$73,561
Explanation:
The computation of inventory increased is shown below:-
Inventory increase = (Received goods - Returned goods) × (1 - 0.01) + Freight charges
= ($75,000 - $1,100) × 0.99 + $400
= $73,900 × 0.99 + $400
= $73,161 + $400
= $73,561
Therefore for computing the increased inventory we have simply applied the above formula.
How can computers be used to revise business messages?
Answer:
Please refer to the below for answers.
Explanation:
Computers can be used to revise business messages in the following ways;
•Style checker. This software also assist in revising business messages through identifying errors in writtings and then outlining options of how one would like to correct them.
•Commenting. When writting business messages, computers(commenting) can also be used to add comments or notes or provide additional information hence important in revising messages.
•Spell checker. Some softwares are installed in computers that assist to check spellings for correctness. The software compare typed words with thousands of correctly spelt words and then determine the correct spelling using algorithm.
•Thesaurus. When writting business messages, computer can help writers find the best words to express ideas or find word(s) that may be aptly applied. This is done through the use of Thesaurus; which is a focal point for finding synonyms and antonyms of words.
•Grammar checker. This is also a software installed in computers that could help revise business messages for grammar correctness in a sentence. It helps in finding grammatical errors and correct all types of English grammar and spelling mistakes. It basically proof read.
•Revision tracking. Computers assist in revising business messages through revision tracking. One can make changes to a file(delete, update) in a computer and same can be tracked through revision tracking. It refer to changes made in a document and then the version number of the document is updated.
Mann, Inc., which owes Doran Co. $1,200,000 in notes payable with accrued interest of $108,000, is in financial difficulty. To settle the debt, Doran agrees to accept from Mann equipment with a fair value of $1,140,000, an original cost of $1,680,000, and accumulated depreciation of $390,000.
Instructions
(a) Compute the gain or loss to Mann on the settlement of the debt.
(b) Compute the gain or loss to Mann on the transfer of the equipment.
(c) Prepare the journal entry on Mann’s book to record the settlement of this debt.
(d) Prepare the journal entry on Doran’s books to record the settlement of the receivable.
Answer:
A. $168,000
B.$150,000
C.Dr Notes Payable1,200,000
Dr Interest Payable 108,000
Dr Accumulated Depreciation 390,000
Dr Loss on Disposal of Equipment 150,000
Cr Equipment 1,680,000
D.Dr Equipment 1,140,000
Dr Allowance for Doubtful Accounts 168,000
Cr Notes Receivable1,200,000
Cr Interest Receivable 108 ,000
Explanation:
Mann, Inc.,
(a)Computation of the gain or loss to Mann on the settlement of the debt will be:
Note payable$1,200,000
Add Interest payable108,000
Carrying amount of debt 1,308,000
Less Fair value of equipment (1,140,000)
Gain on restructuring of debt$ 168,000
(b)Computation of the gain or loss to Mann on the transfer of the equipment will be:
Cost$1,680,000
Less Accumulated depreciation (390,000)
Book value1,290,000
Less Fair value of plant assets (1,140,000)
Loss on disposal of equipment$ 150,000
(c) The Journal urnal entry on Mann’s book to record the settlement of this debt will be:
Dr Notes Payable1,200,000
Dr Interest Payable 108,000
Dr Accumulated Depreciation 390,000
Dr Loss on Disposal of Equipment 150,000
Cr Equipment 1,680,000
Cr Gain on Restructuring of Debt 168,000
(d) The journal entry on Doran’s books to record the settlement of the receivable will be:
Dr Equipment 1,140,000
Dr Allowance for Doubtful Accounts 168,000
Cr Notes Receivable1,200,000
Cr Interest Receivable 108 ,000
1. A piece of newly purchased industrial equipment costs $1,240,000 and is classified as seven-year property under MACRS. Calculate the annual depreciation allowances and end-of-the-year book values for this equipment.
Answer:
Solution for the question is given below
Explanation:
Year OpeningValue MACRS Depreciation Closing Book Value
1. 1,240,000 0.1429 177,196 1,062,804
2. 1,062,804 0.2449 260,280.69 802,523.30
3. 802,523.30 0.1749 140,361.32 662,161.97
4. 662,161.97 0.1249 82,704.03 579,457.93
5. 579,457.93 0.0893 51,745.59 527,712.33
6. 527,712.33 0.0892 47,071.94 480,640.40
7. 480,640.40 0.0893 42,921.18 437,719.21
Remsco has taxable income of $61,000 and a charitable contribution limit modified taxable income of $72,500. Its charitable contributions for the year were $7,540. What is Remsco's current-year charitable contribution deduction and contribution carryover
Answer:
Remsco's current-year charitable contribution deduction is $7,250
Contribution carryover is $ 290
Explanation:
Taxable income = $61,000
Charitable contribution limit modified taxable income = $72,500
Charitable contributions for the year = $7,540
Since, charitable contribution deduction is limited to 10% of charitable contribution limit modified taxable income ,
Remsco's current-year charitable contribution deduction = $72,500 x 10%
= $7,250
Therefore, contribution carryover = $7,540 - $7,250 = $ 290
A registered representative wishes to sell a customer a limited partnership unit that is offered through his friend - the general partner in the venture. Under FINRA rules, this action is:
Answer:
only permitted if the member firm is notified in writing and gives prior written approval to the transaction
Explanation:
Under FINRA rules, registered representatives cannot effect private securities transactions.
But FINRA does allow an exemption from this prohibition on the condition that the member firm is notified in writing and gives prior written approval to the transaction
Jarrett Baker is the founder of an enterprise software company located in Chevy Chase, Maryland. By looking at the income statements for Jarrett’s business over the past 3 years, you see that its working capital has declined from $42,400 in 2012 to $17,900 in 2013 to $3,100 in 2014. If this trend continues, in what ways could it jeopardize the future of Jarrett’s business?
Answer and Explanation:
In this particular case, the working capital continues to fall and hits a value below zero otherwise the business would have a negative cash flow.
Company's assets are below its liabilities which including its current working capital would not be able to manage its debts. The Company would be faced with extreme difficulty in paying back its creditors.
If, as in the case at hand , the company continues to operate in low working capital and work capital declines over time, the company can encounter extremely serious financial problems.
Following Effects may include declining revenue from purchases, non-inventory management, or issues with the specific total accounts receivable.
If the interest rate in the United Kingdom is 8 percent, the interest rate in the United States is 10 percent, the spot exchange rate is $1.75/£1, and interest rate parity holds, what must be the one-year forward exchange rate?
Answer:
The answer is $1.78 / £1
Explanation:
Solution
Given that
Interest rate of United kingdom = 8%
Interest rate of United States =10%
Spot exchange rate =$1.75£1
The next step is to find the one year forward rate of exchange
Thus
Forward Rate = S₀ * [ ( 1 + Rus) / ( 1 + RE) ]
=$ 1.75 * ( ( 1 + 10%) / ( 1 + 8%) )
$1.78
Therefore, the forward exchange rate is $ 1.78 / £1
Match the following terms with their definitions.
1. Internal control
2. Control procedures
3. Firewalls
4. Encryption
5. Environment
6. Information system
7. Separation of duties
8. Collusion
9. Documents
10. Audits
11. Operational efficiency
12. Risk assessment
13. Sarbanes-Oxley Act
a. Two or more people working together to overcome internal controls.
b. Part of internal control that ensures resources are not wasted.
c. Requires companies to review internal control and take responsibility for the accuracy and completeness of their financial reports.
d. Should be prenumbered to prevent theft and inefficiency
e. Limits access to a local network.
f. Example: The person who opens the bank statement should not also be the person who is reconciling cash.
g. Identification of uncertainties that may arise due to a company's products, services or operations.
h. Examination of a company's financial statements and accounting system by a trained accounting professional.
i. Without a sufficient one of these, information cannot properly be gathered and summarized.
j. The organizational plan and all related measures that safeguard assets, encourage employees to follow company policies, promote operational efficiency, and ensure accurate and reliable accounting data.
k. Component of internal control that helps ensure business goals are achieved.
l. Rearranges data by a mathematical process-
m. To establish an effective one, a company's CEO and top managers must behave honorably to set a good example for employees.
Answer:
1. Internal control - The organizational plan and all related measures that safeguard assets, encourage employees to follow company policies, promote operational efficiency, and ensure accurate and reliable accounting data. (J)
2. Control procedures - Component of internal control that helps ensure business goals are achieved. (K)
3. Firewalls - Limits access to a local network. (E)
4. Encryption - Rearranges data by a mathematical process. (I)
5. Environment - To establish one a company, CEO and top managers must behave honorably to set a good example for employees. (M)
6. Information system - Without a sufficient one of these information cannot properly be gathered and summarized. (I)
7. Separation of duties - Example: The person who opens the bank statement should not also be the person who is reconciling cash. (F)
8. Collusion - Two or more people working together to overcome internal controls. (A)
9. Documents - Should be pre-numbered to prevent theft and inefficiency (D)
10. Audits - Examination of a company's financial statements and accounting system by a trained accounting professional. (H)
11. Operational efficiency - Part of internal control that ensures resources are not wasted (B)
12. Risk assessment - Identification of uncertainties that may arise due to a company's products services or operations . (G)
13. Sarbanes-Oxley Act - Requires companies to review internal control and take responsibility for the accuracy and completeness of their financial reports. (C)
According to the Phillips curve, policymakers could reduce both the inflation rate and the unemployment rate by Group of answer choices increasing the money supply. raising taxes. increasing government expenditures None of the other answers is correct
Answer:
None of the other answers is correct.
Explanation:
Williams A. Phillips was a notable economist born in New Zealand. Phillips wrote a famous article titled "The Relation between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861-1957" published in 1958 by Economica. In the article, he used data for the United Kingdom (U.K) to illustrate on a graph, a negative or inverse relationship between the rate of change of employee wages in the U.K and the unemployment rate in the United Kingdom (U.K).
Consequently, using the Phillips curve it is practically impossible for policymakers to reduce both the inflation rate and the unemployment rate because as the inflation rate decreases; the unemployment rate increases and vice-versa.
However, according to the Phillips curve, policymakers can reduce inflation and increase unemployment if aggregate demand is contracted.
Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $176,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $35,000.
What is its approximate internal rate of return?
Answer:
i think the answer218
Explanation:
if you add 176.000+35.000=211+7=218 you get the right answer
The approximate internal rate of return is 176.000+35.000=211+7=218. From calculating the cost and salvage value we get the internal rate of return.
What is internal rate of return?In financial analysis, the internal rate of return (IRR) is a statistic used to calculate the profitability of possible investments. IRR is a discount rate that, in a discounted cash flow analysis, reduces all cash flows' net present values (NPV) to zero. The same formula is used for NPV calculations and IRR calculations.
A useful tool for comparing investments is the internal rate of return (IRR), which is the interest rate at which the sum of all cash flows equals zero. If we substitute 13.92% for the 8% in the aforementioned case, NPV will be zero, and that represents your IRR. IRR is therefore defined as the discount rate at which a project's NPV equals zero.
IRR can be used to rank a variety of potential investments or projects on a pretty even basis because it is consistent for investments of all types. Generally speaking, the investment with the highest IRR would be regarded as the best when comparing options with other similar attributes.
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Mr. Thano, age 47, withdrew $22,000 from his employer-sponsored qualified retirement plan to pay for his daughter's wedding. Compute the tax cost of the withdrawal if Mr. Thano has a 24% marginal tax rate on ordinary income. Tax Cost is_____
Answer:
$7,480
Explanation:
Mr Thano withdrew $22,000 at the age of 47
Marginal Tax rate= 24%
At the age of 47 means that the withdraw was made prematurely. Immature withdrawal of retirement plans means withdrawal made before the age of 60-65 years depending on the Country Policy
Hence, Tax Cost = 24% * 22,000
Tax cost = 5,280.
In addition, Mr Thano will be charge premature withdrawal cost of 10% as well
10% * 22000 = 2,200.
In total, the tax cost on the withdrawal of $22,000 is = $5,280 + $2,200 = $7,480
Lynn, a company owner, looks at her financial statements. She wants to know how much the cash balance contributed to total assets on the balance sheet. What would you suggest
Answer:
conduct a vertical financial analysis using a total from the balance sheet
Explanation:
Based on what exactly Lynn wants, the best suggestion for her in this scenario would be to conduct a vertical financial analysis using a total from the balance sheet. This is a method of financial statement analysis in which each line item is listed as a percentage of a base figure within the statement. Doing so will give her the percentage that each asset contributed to the total balance sheet.