Answer:
a. the number of factors included in a marketing research study are not exhaustive.
Explanation:
Marketing research is highly effective as a tool for guiding marketing decisions, but it is necessary for the manager to rely on making decisions not only through research, but also due to his conceptual skills of seeing the organization in a systematic way, where there is a much greater breadth and more complex factors than just the information found through marketing research. The set of the manager's vision, experiences, analyzes and indicators is important for the most adequate assessment so that organizational marketing decisions are effective and achieve the company's objective.
Therefore, it is correct to state that the number of factors included in a marketing research study is not exhaustive.
• What are the advantages and disadvantages of owning versus outsourcing for each of these components (staff, computer servers, software licensing, and data storage)?
Answer:
Explanation below
Explanation:
Outsourcing simply involves the act of contracting our certain business activities and processes to third-party providers.
Staff
When you outsource your staff, you can be able to save cots and use the freed capital for other things but the disadvantage would certainly be around the issue of confidentiality of business information.
When you outsource computer servers, software licensing, and data storage, you would gain access to world-class capabilities because the third-party providers would likely provide them to meet their customers.
There would also be shared risks as part of the benefits. The disadvantages could include loss of control. People who discourage outsourcing of these functions are of the opinion that third-party vendor cannot be able to match the level of responsiveness and levels of services that could be offered by an in-house team
So, I'm just wondering, but what is the best job in Mesa, AZ?
I know that's not what this website is for, but I need to know and this is the only website I can go to for help.
Answer:
I'm not really sure but you can definitely google the highest paid jobs there.
what will you use for banca/boat to move
Answer:
a paddle
Explanation:
Using a "paddle" is very important in order to move/propel a boat. Paddling creates a force which goes against the water. This force is faced by an opposite force that is equal and that which allows the boat to move forward.
So as you push the water asides, the boat accelerates. Such technique is deemed efficient when using the boat. Not following the proper technique will not move the boat.
Svetlana won $1,000,000 in a contest, to be paid in twenty $50,000 payments at yearly intervals, the first payment paid at the time of the contest. (Of course, the present value of her winnings is less than $1,000,000.) Svetlana decided to keep X each year to spend and deposit the remaining $50;000 X into an account earning an annual effective interest rate of 5%. She chose the value X to be as large as possible so that, at the moment of the 20th deposit, the account would have grown to such a size that it would provide Svetlana and her heirs at least X per year in interest forever. Find X.
Answer: 31155.5
Explanation:
The following can be deduced from the question:
Money won = $1,000,000
Installments made yearly = $50,000
Interest rate = 5%
The yearly deposits made by Svetalana will be: = 500000-x
The future Value of the yearly deposits made by Svetalana will be:
= (50000-x) × (1/(1.05) + (1/(1.05)^2 .....(1/(1+0.05)^20))
= (500000-x) × 33.066
We should recall that the interest from the question is equated to x. This will be:
33.066 × (50000-x) × 0.05 =x
1.6533(50000 - x) = x
82665 - 1.6533x = x
2.6533x = 82665
x = 82665/2.6533
x = 31155.5
asper makes a $28,000, 90-day, 8.5% cash loan to Clayborn Co. The amount of interest that Jasper will collect on the loan is: (Use 360 days a year.)
Answer:
$595
Explanation:
The computation of the amount of interest is shown below:-
Amount of interest = Loan amount × Interest rate × Number of days ÷ Number of days in a year
= $28,000 × 8.5% × 90 ÷ 360
= $595
Therefore for computing the amount of interest we simply applied the above formula.
And the same is to be considered
The Titanic Shipbuilding Company has a noncancelable contract to build a small cargo vessel. Construction involves a cash outlay of $273,000 at the end of each of the next two years. At the end of the third year the company will receive payment of $650,000. Assume the IRR of this option exceeds the cost of capital. The company can speed up construction by working an extra shift. In this case there will be a cash outlay of $595,000 at the end of the first year followed by a cash payment of $650,000 at the end of the second year. Use the IRR rule to show the (approximate) range of opportunity costs of capital at which the company should work the extra shift.
The company should work the extra shift if the cost of capital is between ___________ % and ___________ %
Answer:
19% to 19.7%
Explanation:
Cost of capital is the firm cost of sources of financing. It includes debt, equity and all other sources of finance with keeping the track of their required rate of return. The cost of capital is the expected return which is required by the lenders of fund.
What are the 2 main sources of data
Answer:
internal and external source
Explanation:
Answer:
There are two sources of data. they are:
1. Internal Source.
2. External Source.
Explanation:
Internal Source. When data are collected from reports and records of the organision itself, it is known as the internal source.
External Source. When data are collected from outside the organition, it is known as the external source.
This activity is important because as world trade has grown, more companies have entered the global market. Once a firm decides to enter the global market, it must choose which means of market entry is the most appropriate. The global market entry strategies vary greatly on the dimensions of financial commitment, risk, marketing control, and profit potential.
The goal of this exercise is to demonstrate your understanding of the different types of global market entry strategies: exporting, licensing, joint venture, and direct investment. Roll over each company name to read the description of the firm's strategy, then drop it onto the correct global market entry strategy within the graphic.
1. Yoplait
2. Moodmatcher lipstick
3. McDonald's
4. Ericsson and CGCT
5. Boeing
6. Nissan
A. Indirect Exporting
B. Direct Exporting
C. Licensing
D. Franchising
E. Joint Venture
F. Direct Investment
Answer:
Throughout the clarification subsection below, the definition of the questionnaire provided is defined.
Explanation:
Indirect Exporting and Moodmatcher lipstickRationale: A organization like Moodmatcher lipstick manufactures the understood as a tool and promotes this through an intermediary throughout numerous governments or foreign.
Direct Exporting and BoeingRationale: A business including Boeing creates the goods domestically which exports anything without an intermediary throughout foreign nations.
Licensing and YoplaitRationale: In return for royalty as well as the fee, a business like Yoplait sells the rights to copyright, trademark, proprietary information, and perhaps other prized intellectual property.
Franchising and McDonald'sRationale: Companies including McDonald's are licensed to launch new franchises which are one of the quickest expanding methods for market entry.
Joint Venture Ericsson and CGCTRationale: The Swedish networking group Ericsson has entered into a joint venture partner CGCT, another French switching group.
Direct Investment and NissanRationale: A domestic company such as Nissan invests in some kind of an international subsidiary and retains it.
The two principle methods of measuring Gross Domestic Product are the A. expenditures approach and the income approach. B. flow approach and the stock approach. C. intermediate approach and the valueadded approach. D. domestic approach and the international approach.
Answer:
A. expenditures approach and the income approach.
Explanation:
GDP known as gross domestic product, is the dollar value of all final output produced within the borders of the nation during a specific period of time. Under a nominal gross domestic product (GDP) calculation for an economy, the current dollar value of the finished goods and services within the country is used. Since it is a measure that uses the current dollar value, it also include changes in price due to inflation or an increase in price in the economy
The GDP is important because it is a measure of the economy’s overall economic performance.
Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country. The Gross Domestic Products (GDP) of a country's economy gives an insight to it's social well-being, these includes;
The two principle methods of measuring Gross Domestic Product are the expenditures approach and the income approach.
The following selected transactions were completed by Capers Company during October of the current year:
Oct. 1 Purchased merchandise from Hoagie Co., $9,950, terms FOB shipping point, 2/10, n/eom.
2 Prepaid freight of $220 was added to the invoice.
4 Purchased merchandise from Taco Co., $13,650, terms FOB destination, 2/10, n/30.
6 Issued debit memo to Taco Co. for $4,550 of merchandise returned from purchase on October 4.
13 Paid Hoagie Co. for invoice of October 3.
14 Paid Taco Co. for invoice of October 4 less debit memo of October 6.
19 Purchased merchandise from Veggie Co., $27,300, terms FOB shipping point, n/eom.
19 Paid freight of $400 on October 19 purchase from Veggie Co.
20 Purchased merchandise from Caesar Salad Co., $22,000, terms FOB destination, 1/10, n/30.
30 Paid Caesar Salad Co. for invoice of October 20.
31 Paid UK Imports Co. for invoice of October 1.
31 Paid Veggie Co. for invoice of October 19.
Required:
Journalize the entries to record the transactions of Capers Company for October.
Answer and Explanation:
Answer and explanation attached
The following information was drawn from the Year 1 accounting records of Ozark Merchandisers: Inventory that had cost $15,000 was sold for $27,000 under terms 2/20, net/30. Customers returned merchandise to Ozark five days after the purchase. The merchandise had been sold for a price of $660. The merchandise had cost Ozark $400. All customers paid their accounts within the discount period. Selling and administrative expenses amounted to $2,835. Interest expense paid amounted to $200. Land that had cost $6,000 was sold for $6,900 cash.
Required
a. Determine the amount of net sales. (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
b. Prepare a multistep income statement. (Round your intermediate calculations and final answer to the nearest whole dollar amount. Amounts to be deducted and losses should be indicated with a minus sign.)
c. Where would the interest expense be shown on the statement of cash flows?
Operating activities
Investing activities
Financing activities
d. How would the sale of the land be shown on the statement of cash flows?
A. The full sales price of the land, $9,250, would be shown as a cash inflow from financing activities on the statement of cash flows.
B. The full sales price of the land, $9,250, would be shown as a cash inflow from investing activities on the statement of cash flows.
C. The full sales price of the land, $9,250, would be shown as a cash inflow from operating activities on the statement of cash flows
Answer: See explanation
Explanation:
a. Sales = $27000
Less: sales returned = -$660
Less: discount at 2% = ($27000 - $660) × 2% = -$526.8
Net sales = $25813.2
b. Net sales = $25813.2
Less: cost of goods sold = $15000 - $400 = -$14600
Gross profit = $11213.2
Operating expense:
Less: Selling and administrative expenses = -$2835
Operating income = $8378.2
Non-operating items:
Less: Interest expense = ($200
Add: Gain on land Sales = $900
Net Income= $9078.2
c. The interest expense be shown on the statement of cash flows in the operating expenses section. It'll be recorded in the operating activities.
d. The sale of the land would be under the investing activity as it's capital asset of the business. Therefore, the full sales price of the land, $9,250, would be shown as a cash inflow from investing activities on the statement of cash flows.
Option B is the correct answer.
Wholemark is an Internet order business that sells one popular New Year greeting card once a year. The cost of the paper on which the card is printed is $0.40 per card, and the cost of printing is $0.10 per card. The company receives $3.75 per card sold. Since the cards have the current year printed on them, unsold cards have no salvage value. Their customers are from the four areas: Los Angeles, Santa Monica, Hollywood, and Pasadena. Based on past data, the number of customers from each of the four regions is normally distributed with mean 2,300 and standard deviation 200. (Assume these four are independent.)
What is the optimal production quantity for the card?
Answer:
9644
Explanation:
cost of paper on which a card is printed = $0.40 per card
cost of printing = $0.10 per card
profit made per card sold = $3.75
number of areas where customers are located (n)= 4
mean of customers from each region = 2300
standard deviation for each region = 200
note : each region is independent
The optimal production quantity for the card can be calculated going through these steps
first we determine
the cost of card = $0.10 + $0.40 = $0.50
selling value = $3.75
salvage value = 0
next we calculate for the z value
= ( selling value - cost of card) / ( selling price - salvage value )
= ( 3.75 - 0.50 ) / 3.75 = 0.8667
Z( 0.8667 ) = 1.110926 ( using excel formula : NORMSINV ( 0.8667 )
next we calculate
u = n * mean demand
= 4 * 2300 = 9200
б = [tex]200\sqrt{n}[/tex] = 200 * 2
= 400
Hence optimal production quantity for the card
= u + Z (0.8667 ) * б
= 9200 + 1.110926 * 400
= 9644.3704
≈ 9644
Zoe Corporation has the following information for the month of March: Purchases $92,000 Materials inventory, March 1 6,000 Materials inventory, March 31 8,000 Direct labor 25,000 Factory overhead 37,000 Work in process inventory, March 1 22,000 Work in process inventory, March 31 23,500 Finished goods inventory, March 1 21,000 Finished goods inventory, March 31 30,000 Sales 257,000 Selling and administrative expenses 79,000
Prepare a schedule of cost of goods manufactured. Enter all amounts as positive numbers. Zoe Corporation Statement of Cost of Goods Manufactured For the Month Ended March 31
Answer:
Explanation:
The preparation of the cost of goods manufactured is presented below:
Zoe Corporation
Statement of Cost of Goods Manufactured
For Month Ended March 31, 20XX
Work in process inventory March 1 $22,000
Direct materials :
Materials inventory, March 1 $6,000
Add: Purchases $92,000
Cost of materials for use $98,000
Less - materials inventory, March 31 -$8,000
cost of materials placed in production $90,000
Add:
Direct labor $25,000
Factory overhead $37.000
Total manufacturing costs added $152,000
Total manufacturing costs $174,000
Less- work in process inventory, March 31 $23,500
Cost of goods manufactured $150,500
leased the asset on a 2-year lease, the payment would be $110 at the begin- ning of each year. If RC borrowed and bought, the bank would charge 10% interest on the loan. In either case, the equipment is worth nothing after 2 years and will be discarded. Should RC lease or buy the equipment?
Answer:
you should purchase the asset using a bank loan
Explanation:
in order to compare both options, we need to determine the present value of each alternative:
present value of lease costs:
cash flow year 0 = $110
cash flow year 1 = $110
PV = $110 + $110/1.1 = $110 + $100 = $210
present value of purchasing the equipment:
cash flow year 0 = $0
cash flow year 1 = $115.24
cash flow year 2 = $115.24
PV = $200
if you consider the tax shield of leasing = ($220 - $200) x tax rate = $20 x 40% = $8
the tax shield of interest expense = ($230.48 - $200) x tax rate = $30.48 x 40% = $12.19
It doesn't matter how you analyze this, buying is a better and cheaper option. The problem with leasing is that you need to make an immediate payment, while if you borrow money, then the first payment is made in the future. The time value of money is different.
You are given the following information concerning Parrothead Enterprises:
Debt: 13,000 6.4 percent coupon bonds outstanding, with 15 years to maturity and a quoted price of 107. These bonds pay interest semiannually.
Common stock: 345,000 shares of common stock selling for $76.50 per share. The stock has a beta of .90 and will pay a dividend of $3.80 next year. The dividend is expected to grow by 5 percent per year indefinitely.
Preferred stock: 10,000 shares of 4.4 percent preferred stock selling at $86 per share.
Market: 11 percent expected return, risk-free rate of 3.6 percent, and a 22 percent tax rate.
Required:
Calculate the company's WACC.
Answer and Explanation:
Please find attached
g you are eligible for a 30 year fixed rate home mortgage with 3.6% interest rate what is the maximum loan you can get
Answer:
the maximum loan is $379,417
Explanation:
The computation of the maximum loan is shown below:
As we know that
Maximum Loan = Present Value of all monthly Payments
= $1,725 × PVAF(0.3%,360 months)
= $1,725 × [1- (1+0.003)^-360] ÷ 0.003
= $1,725 × 219.9517
= $379,417
hence, the maximum loan is $379,417
Here the interest rate is divided by 12 and the months should be multiplied by 12 as this is the case of monthly basis
Answer:
money
Explanation:
On January 1, 20X8, L Corporation acquired all of the common stock of S Company for $300,000. On that date, S Company's identifiable net assets had a fair value of $250,000. The assets acquired in the purchase of S are considered to be a separate reporting unit of L Corporation. The carrying value of S Company's net assets at December 31, 20X8, is $310,000. The fair value of the reporting unit is determined to be 260,000. Determine the amount, if any, of impairment loss to be recognized at December 31, 20X8.
a. 40,000
b. 50,000
c. 10,000
d. 60,000
Answer:
b. 50,000
Explanation:
According to the given situation, the computation of impairment loss is shown below:-
The Amount of impairment loss to be recognized at December 31, 20X8 is
= Net assets - Fair value of reporting unit
= $310,000 - $260,000
= $50,000
Therefore we applied the above formula to determine the amount of impairment loss to be recognized at December 31, 20X8.
Shannon’s Brewery is a newly opened micro-brewery of craft beers located about a mile from Samantha Springs in Keller, Texas. According to Shannon Carter, (owner, founder, and brew master) Samantha Springs "is an exceptional water source." "It’s surrounded by a very unique rock formation that has very, very hard compressed rocks that have been hollowed out with this very fine sand. The water travels for miles, and the end product is this filtered water that is just phenomenal." Shannon Carter crafts what the brew master calls "wholesome beers" made with the highest quality, non-GMO grains and malts available and brewed using techniques garnered from his Irish heritage. Shannon’s mission statement closely reflects this philosophy. According to Shannon Carter:
Our award-winning beer is brewed with the best stuff on earth: pure spring water, whole grain, whole flower hops and a whole lotta love! For us, "brewed with the best stuff on earth," is much more than a saying. it’s a guiding principle. Paramount to this commitment is our multi-step fire-brewed process.
Required:
What makes Shannon’s beer great?
Answer:
Marketing Mix
Explanation:
What makes Shannon's beer great is basically her Marketing Mix. This combination of aspects is what ultimately makes Shannon's beer unique and attracts a large number of customers which makes it very profitable. This includes a combination of a unique beer recipe with high-quality ingredients, a top-notch mission statement, dedicated marketing that focuses on the organic and wholesome features of the product, and lastly a dedicated customer base that loves all of these features and purchases the product. This marketing mix sets Shannon's Beer apart from the competition and makes it great.
The following trial balance of Blues Traveler Corporation does not balance.
Blues Traveler Corporation Trial Balance April 30, 2020
Debit Credit
Cash $5,912
Accounts Receivable 5,240
Supplies 2,967
Equipment 6,100
Accounts Payable $7,044
Common Stock 8,000
Retained Earnings 2,000
Service Revenue 5,200
Office Expense 4,320 00000
$24,539 $22,244
An examination of the ledger shows these errors.
1. Cash received from a customer on account was recorded (both debit and credit) as $1,380 instead of $1,830.
2. The purchase on account of a computer costing $3,200 was recorded as a debit to Office Expense and a credit to Accounts Payable.
3. Services were performed on account for a client, $2,250, for which Accounts Receivable was debited $2,250 and Service Revenue was credited $225.
4. A payment of $95 for telephone charges was entered as a debit to Office Expense and a debit to Cash.
5. The Service Revenue account was totaled at $5,200 instead of $5,280.
Required:
From this information prepare a corrected trial balance.
Answer:
1. Cash received from a customer on account was recorded (both debit and credit) as $1,380 instead of $1,830.
Dr Cash 450
Cr Accounts receivable 450
2. The purchase on account of a computer costing $3,200 was recorded as a debit to Office Expense and a credit to Accounts Payable.
Dr Equipment 3,200
Cr Office expense 3,200
3. Services were performed on account for a client, $2,250, for which Accounts Receivable was debited $2,250 and Service Revenue was credited $225.
Cr Service revenue 2,025
4. A payment of $95 for telephone charges was entered as a debit to Office Expense and a debit to Cash.
Cr Cash 190
5. The Service Revenue account was totaled at $5,200 instead of $5,280.
Cr Service revenue 80
adjusted trial balancedebit credit
Cash $6,172
Accounts Receivable $4,790
Supplies $2,967
Equipment $9,300
Accounts Payable $7,044
Common Stock $8,000
Retained Earnings $2,000
Service Revenue $7,305
Office Expense $1,120
$24,349 $24,349
On January 1, 2018, the chief operating officer of New Belgium, Jeff Stambaugh, signed a noncancellable lease for street equipment. The lease was for 10 years. The present value of payments expected to be made during the lease is $75,152. The township’s incremental borrowing rate is 7 percent. The $10,000 annual lease payment is due on the first day of each year beginning in 2018.
Required:
Prepare all journal entries necessary to record the lease transaction for 2018 and the payment made in 2019.
Answer:
Account Titles and Explanation Debit$ Credit$
2018
Expenditure-Capital outlays $75,152
Other financing source-Capital leases $75,152
(To record expenditure-capital outlay)
Expenditure-capital lease principal $10,000
Voucher payable $10,000
(To record expenditure capital lease principal)
Voucher Payable $10,000
Cash $10,000
(To record payment of expenditure)
2019
Expenditure-capital lease principal $5,440
Expenditure-interest on capital lease $4,560
Voucher payable $10,000
(To record expenditure capital lease principal)
Voucher payable $10,000
Cash $10,000
(To record payment of expenditure)
Deal Leasing leased equipment to Hand Company on January 1, 2021. The leased equipment's book value is $420,000 with no estimated residual value at the end of its useful life. The remaining useful life of the leased equipment is 15 years. The lease payments were calculated to provide the lessor a 10% return. Ten annual lease payments of $60,000 are due at the beginning of each year beginning January 1, 2021. Both companies use the straight-line method in depreciation/amortization their assets.
Answer:
The requirements are missing, so I looked for a similar question. This is a financial lease since the PV of the lease payments represents 97% of the asset's value.
January 1, 2021, equipment leased from Deal leasing
Dr Right of use asset 405,541.20
Cr Lease liability 405,541.20
the right of use asset = PV of lease payments = $60,000 x 6.75902 (PV annuity due, 10%, 10 periods) = $405,541.20
January 1, 2021, first lease payment
Dr Lease liability 60,000
Cr Cash 60,000
December 31, 2021, depreciation expense on leased asset
Dr Depreciation expense 40,554.12
Cr Accumulated depreciation 40,554.12
depreciation expense = $405,541.20 / 10 = $40,554.12
December 31, 2021, interest expense on asset lease
Dr Interest expense 34,554.12
Cr Interest payable 34,554.12
interest expense = ($405,541.20 - $60,000) x 10% = $34,554.12
Below are cash transactions for a company, which provides consulting services related to mining of precious metals.
a. Cash used for purchase of office supplies, $1,600.
b. Cash provided from consulting to customers, $42,600.
c. Cash used for purchase of mining equipment, $67,000.
d. Cash provided from long-term borrowing, $54,000.
e. Cash used for payment of employee salaries, $23,400.
f. Cash used for payment of office rent, $11,400.
g. Cash provided from sale of equipment purchased in c. above, $21,900.
h. Cash used to repay a portion of the long-term borrowing in d. above, $37,000.
i. Cash used to pay office utilities, $3,700.
j. Purchase of company vehicle, paying $9,400 cash.
Required:
Calculate cash flows from operating activities.
Answer:
Cash Flow Statement
Cash Flow from Operating Activities
Cash received from customers $42,600
Cash payment to salaries -$23,400
Cash used for purchase of office supplies -$1,600
Office rent paid -$11,400
Payment for office utilities -$3,700
Net Cash Inflow from Operating activities $2,500
On January 20, 2017, Tamira Nelson, the accountant for Picton Enterprises, is feeling pressure to complete the annual financial statements. The company president has said he needs up-to-date financial statements to share with the bank on January 21 at a dinner meeting that has been called to discuss Picton's obtaining loan financing for a special building project. Tamira knows that she will not be able to gather all the needed information in the next 24 hours to prepare the entire set of adjusting entries. Those entries must be posted before the financial statements accurately portray the company's performance and financial position for the fiscal period ended December 31, 2016. Tamira ultimately decides to estimate several expense accruals at the last minute. When deciding on estimates for the expenses, she uses low estimates because she does not want to make the financial statements look worse than they are. Tamira finishes the financial statements before the deadline and gives them to the president without mentioning that several account balances are estimates that she provided.
Required:
1. Identify several courses of action that Tamira could have taken instead of the one she took.
2. If you were in Tamira's situation, what would you have done?
Answer:
this case tells us about some sort of pressures that accounts feel when financial statements are needed urgently
Explanation:
1) As for using low estimates, this step was wrong on her part. she should have been upfront in her estimates. for the items that she could not estimate there should have been an indication that such items were still under review, instead of doing what she did to give the financial estimate a good look. Using guesses or deliberately using low estimates was a bad idea, GAAP would never condone that.
She should have met with the president and let him know that finalization of the financial statements would not possible within the time frame that he has given. She could have also explain that such delays are normal and she would have given estimates of when the draft internal copy would be made available to him. such steps she took could have resulted in serious consequences for the company
2) I would not inflate or deflate the figures on purpose to make financial statements look better. If it is time to present the draft and final year-end financial statements I will have to tell the truth on the numbers and estimations used and also the reasons for that. i would have explained the constraints that i was facing. if i was still being pressurized by the president, i would have no choice than to call it quits instead of going against the ethics of my profession, since there are both ethical and legal implications to not giving inaccurate financial statements.
Consider a multifactor model with two factors. A well-diversified portfolio (Portfolio P) has a beta of 0.75 on factor 1 and a beta of 1.25 on factor 2. The risk premiums on the factor 1 and factor 2 are 1% and 7%, respectively. The risk-free rate of return is 7%. What is the expected return on portfolio P, according to a two-factor model
Answer: 16.5%
Explanation:
Expected Return on portfolio P will be calculated as:
= Rf + (Beta1 × F1) + (Beta2 × F2)
where,
Rf = Risk Free rate
F1 = risk premium on Factor1
F2 = risk premium on Factor2
Expected Return will now be:
= 7% + (0.75 × 1%) + (1.25 × 7%)
= 7% + 0.75% + 8.75%
= 16.5%
The expected return on portfolio P, according to a two-factor model will be 16.5%.
Answer:
16.5%
Explanation:
A multi-factor model can be used to explain either an individual security or a portfolio of securities. It does so by comparing two or more factors to analyze relationships between variables and the resulting performance.
DATA
Risk Free rate = Rf = 7%
risk premium on Factor1 = F1 = 1%
Beta (Factor 1) = 1.25
risk premium on Factor2 = F2 = 7%
Beta (Factor 1) = 2
Expected Return = Rf + (Beta1 x F1) + (Beta2 * F2)
Expected Return = 7% + (0.75 x 1%) + (1.25 x 7%)
Expected Return = 0.07 + 0.0075 + 0.0875
Expected Return = 0.165 or 16.5%
Cullumber Company has the following balances in selected accounts on December 31, 2020.
Accounts Receivable $0
Accumulated Depreciation—Equipment 0
Equipment 8,000
Interest Payable 0
Notes Payable 10,000
Prepaid Insurance 3,960
Salaries and Wages Payable 0
Supplies 2,200
Unearned Service Revenue 28,000
All the accounts have normal balances. The information below has been gathered at December 31, 2020.
1. Cullumber Company borrowed $11,400 by signing a 9%, one-year note on September 1, 2020.
2. A count of supplies on December 31, 2020, indicates that supplies of $820 are on hand.
3. Depreciation on the equipment for 2020 is $1,200.
4. Cullumber Company paid $3,960 for 12 months of insurance coverage on June 1, 2020.
5. On December 1, 2020, Cullumber collected $28,000 for consulting services to be performed from December 1, 2020, through March 31, 2021. The company had performed 1/4 of the services by December 31.
6. Cullumber performed consulting services for a client in December 2020. The client will be billed $4,200.
7. Cullumber Company pays its employees total salaries of $5,400 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the last 3 days of 2020.
Required:
Prepare adjusting entries for the seven items described above.
Answer and Explanation:
The adjusting entries are shown below:
1. Interest expense [$11,400 × 9% × 4 ÷ 12] $342
To Interest payable $342
(being accrued interest expense is recorded)
2. Supplies expense [$2,200 - $820] $1,380
To Supplies $1,380
[Being supplies expense is recorded]
3. Depreciation expense $1,200
To Accumulated depreciation-Equipment $1,200
[Being depreciation expense is recorded]
4 Insurance expense [$3,960 × 7 ÷ 12] $2,310
To Prepaid insurance $2,310
[being insurance expense is recorded]
5 Unearned service revenue $7,000
To Service revenue $7,000
[Being revenue from unearned is recorded]
6 Accounts receivable $4,200
To Service revenue $4,200
[Being accrued service revenue is recorded]
7 Salaries expense [$5,400 × 3 ÷ 5] $3,240
To Salaries payable $3,240
[being accrued salaries expense is recorded]
Major improvements in computer information technology in the 1990s fueled an increase in investment demand in the United States (a large open economy). Graphically illustrate the effect of an increase of U.S. investment using the Large Open Economy Model. Clearly label the axes and curves in each of your graphs in the model. Clearly indicate the direction of any shifts in the curves.
Answer and Explanation:
Please find attached
Match each trade organization or agreement with its description.
a. Oversees trade agreements among over 150 member nations and arbitrates trade disagreements among member countries.
b. Created a free-trade zone consisting of the United States, Canada, and Mexico with the purpose of eliminating trade barriers between these countries.
c. An agreement between over 25 nations, which abolished tariffs among member countries and standardized policies on agriculture, transportation, and business practices.
1. World Trade Organization
2. North American Free Trade Agreement
3. The European Union
Answer:
1. World Trade Organization
2. North American Free Trade Agreement
3. The European Union
Explanation:
a. World Trade Organization (WTO): Oversees trade agreements among over 150 member nations and arbitrates trade disagreements among member countries. The world trade organization (WTO) is an intergovernmental organization that set rules, policies and regulates global trade across the world. It was established officially on the 1st of January, 1995.
b. North American Free Trade Agreement (NAFTA): Created a free-trade zone consisting of the United States, Canada, and Mexico with the purpose of eliminating trade barriers between these countries. It officially became effective on the 1st of January, 1994.
c. The European Union (EU): An agreement between over 25 nations, which abolished tariffs among member countries and standardized policies on agriculture, transportation, and business practices. It was established officially on the 1st of November, 1993. Some of its member countries are Sweden, Italy, Germany, Portugal, Croatia, Russia, France, Spain, Netherlands etc.
Klean Fiber Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria and odor on clothing while managing heat. Y-Go has become very popular in undergarments for sports activities. Operating at capacity, the company can produce 1,031,000 Y-Go undergarments a year. The per unit and the total costs for an individual garment when the company operates at full capacity are as follows.
Per Undergarment Total
Direct materials $2.04 $2,103,240
Direct labor 0.40 412,400
Variable manufacturing overhead 1.04 1,072,240
Fixed manufacturing overhead 1.44 1,484,640
Variable selling expenses 0.34 350,540
Totals $5.26 $5,423,060
The U.S. Army has approached Klean Fiber and expressed an interest in purchasing 250,500 Y-Go undergarments for soldiers in extremely warm climates. The Army would pay the unit cost for direct materials, direct labor, and variable manufacturing overhead costs. In addition, the Army has agreed to pay an additional $1.02 per undergarment to cover all other costs and provide a profit. Presently, Klean Fiber is operating at 70% capacity and does not have any other potential buyers for Y-Go. If Klean Fiber accepts the Army's offer, it will not incur any variable selling expenses related to this order.
Required:
Prepare an incremental analysis for the Klean Fiber.
Answer:
Klean Fiber Company
Incremental Analysis for the Special order of 250,500 units of Y-Go undergarments:
Direct materials $2.04 $511,020
Direct labor 0.40 100,200
Variable manufacturing overhead 1.04 260,520
Fixed manufacturing overhead 1.02 255,510
Total costs $4.50 $1,127,250
Fixed manufacturing overhead 1.02 255,510
Incremental costs $3.48 $871,740
Explanation:
a) Data:
Full Capacity = 1,031,000
The per unit and the total costs at full capacity for Y-Go:
Per Undergarment Total
Direct materials $2.04 $2,103,240
Direct labor 0.40 412,400
Variable manufacturing overhead 1.04 1,072,240
Fixed manufacturing overhead 1.44 1,484,640
Variable selling expenses 0.34 350,540
Totals $5.26 $5,423,060
b: In her decision to accept or reject the special order for 250,500 units of Y-Go undergarments by the U.S. Army, the Klean Fiber Company will only consider the relevant incremental unit cost of $3.48 and not the whole unit cost of $5.26. The $3.48 cost excludes the fixed overheads or the selling and administrative expenses.
Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows.
January February
Sales $428,400 $476,000
Direct materials purchases 142,800 148,750
Direct labor 107,100 119,000
Manufacturing overhead 83,300 89,250
Selling and administrative expenses 94,010 101,150
All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month following the sale. Sixty percent (60%) of direct materials purchases are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase. All other items above are paid in the month incurred except for selling and administrative expenses that include $1,190 of depreciation per month.
Other data:
1. Credit sales: November 2019, $297,500; December 2019, $380,800.
2. Purchases of direct materials: December 2019, $119,000.
3. Other receipts: January—Collection of December 31, 2019, notes receivable $17,850; February—Proceeds from sale of securities $7,140.
4. Other disbursements: February—Payment of $7,140 cash dividend.
The company’s cash balance on January 1, 2020, is expected to be $71,400. The company wants to maintain a minimum cash balance of $59,500.
Required:
Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February.
Answer:
I used an excel spreadsheet since there is not enough room here.
Pitbull Construction Corporation applies IFRS, has equipment that it can reliably measure fair value of, and has chosen to apply the revaluation model to valuing this equipment on its accounting records. The carrying value of this equipment on Pitbull's books at the end of last year, December 31, 20X1, was $200,000. At the end of this year, December 31, 20X2, due to decreased demand for the equipment, especially when resold as used, the fair value is $150,000. For the year 20X2, in relation to this equipment for which Pitbull has chosen to apply the revaluation method, Pitbull must:_________
Answer and Explanation:
If there is decrease in fair value of an asset as is seen in the example with Pitbull corporation, we decrease asset revaluation reserve in the balance sheet by the value reduced $50000 here to recognise new carrying value of the asset and then debit the expenses of revaluation to the income statement or profit and loss account. If there was an increase in fair value, revaluation would add to retained earnings in balance sheet and income in income statement