Answer:
0.69
Explanation:
From the question above on December 31, 2018 a company has an assets of $29 billion and stockholders equity of $22 billion.
On December 31, 2019 the same company recorded an assets of $55billion and stockholders equity of $17billion
Inorder to calculate the debt-to-assess ratio the first step is to find the amount of liabilities
Liabilities= Assets-Stockholders equity
Assets= $55 billion
Stockholders equity= $17 billion
= $55billion-$17billion
= $38 billion
Therefore, the debt-to-assets ratio can be calculated as follows
Debt-to-assets ratio= Total liabilities/Total Assets
= $38 billion/ $55 billion
= 0.69
Hence on December 31, 3019 the debt-to-assets ratio is 0.69
Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 700,000 units are expected to be produced taking 0.75 machine hours each. How much overhead will be assigned to each unit produced given the following estimated amounts?
Estimated: Department 1 Department 2
Manufacturing overhead costs $3,141,500 $1,571,000
Direct labor hours 167,000 DLH 267,000 DLH
Machine hours 267,000 MH 192,000 MH
a. $10.86 per unit
b. $8.73 per unit
c. $4.22 per unit
d. $11.77 per unit
e. $10 per unit
Answer:
$7.70 per unit
Explanation:
For computing the overhead rate per unit we first need to compute the estimated amount which is as follows
Total manufacturing cost
= Department 1 + department 2
= $31,41,500.00 + $15,71,000.00
= $47,12,500.00
Total machine hours
= Department 1 + department 2
= 267,000 MH + 192,000 MH
= 459000 MH
Now predetermined overhead rate is
= Total manufacturing cost ÷ Total machine hours
= $4,712,500 ÷ 459,000 MHs
= $10.27 per MH
Now overhead per unit is
= Pre-determined overhead rate per MH × Machine Hours required per unit
= $10.27 per MH × 0.75 MHs per unit
= $7.70 per unit
This is the answer but the same is not provided in the given options
The effect of a transaction between two individuals on a third party who has not consented to or played any role in the carrying out of that transaction. This is called an ______________.
Answer:
Externality
Explanation:
An externality is a loss or benefit generated by a producer not caused or earned directly by the producer. An externality may be positive or negative , and may result whether from the production or consumption of a product or service
Therefore in the given situation, it is mentioned that the two transaction effect between the person with respect to the third party that is not agreed for the transaction i.e to carrying out So this situation describes externality
company is considering the purchase of a new piece of equipment for $90,000. Predicted annual net cash inflows from the investment are $36,000 (Year 1), $30,000 (Year 2), $18,000 (Year 3), $12,000 (Year 4), and $6,000 (Year 5). The average operating income generated from the investment over its 5-year life is $20,400. The cash payback period is 3.5 years true false
Answer:
The cash payback period is 3.5 years. The answer is True.
Explanation:
According to the given data we have the following:
Year Cash flows Cumulative Cash flows
0 (90,000) (90,000)
1 36,000 (54,000)
2 30,000 (24,000)
3 18,000 (6000)
4 12000 6000
5 6000 12,000
To calculate the cash payback period we use the following formula:
Payback period=Last period with a negative cumulative cash flow+(Absolute value of cumulative cash flows at that period/Cash flow after that period).
Payback period=3+($6,000/$12,000)
Payback period=3.5 years
The cash payback period is 3.5 years. True
The owner’s initial investment consists of $38,600 cash and $45,980 in land. The company’s $18,550 equipment purchase is paid in cash. The accounts payable balance of $9,060 consists of the $3,830 office supplies purchase and $5,230 in employee salaries yet to be paid. The company’s rent, telephone, and miscellaneous expenses are paid in cash. No cash has been collected on the $14,620 consulting fees earned. Using the above information prepare an October 31 statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.)
Missing information:
ERNST CONSULTING
Income Statement
October 31. 202x
Revenues:
Consulting fees earned $15,600
Total revenues $15,600
Expenses:
Salaries expense $7,450
Rent expense $4,070
Telephone expense $810
Miscellaneous expenses $630
Total expenses $12,960
Net income $2,640
Cash dividends $2,530
Answer:
Ernst Consulting
Statement of Cash Flows
October 31, 202x
Cash flows from operating activities:
Cash received from customers $0
Cash paid for:
Rent expense -$4,070
Telephone expense -$810
Miscellaneous expenses -$630
Total cash flow from operating activities -$5,510
Cash flows from investing activities:
Cash paid for equipment -$18,550
Total cash flows from investing activities -$18,550
Cash flows from financing activities:
Cash investment from stockholders $38,600
Cash paid for dividends -$2,530
Total cash flows from financing activities $36,070
Net cash increase $12,010
Cash balance October 1, 202x $0
Cash balance October 31, 202x $12,010
The next dividend payment by Savitz, Inc., will be $1.68 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever. If the stock currently sells for $32 per share, what is the required return
Answer:
The answer is 11.25%
Explanation:
Solution
Given that:
The next step to take is to calculate the required rate of return which is shown below:
The required rate = D₁/P₀₀ + g
Thus,
$1.68/$32 + 0.06%
=0.0525 + 0.06
=0.1125 or 11.25%
Therefore, the required rate of return is 11.25%
An all-equity firm is considering the following projects:
Project Beta IRR
W .62 9.2 %
X .77 10.3
Y 1.27 14.1
Z 1.42 17.0
The T-bill rate is 5 percent, and the expected return on the market is 12 percent.
A. Compared with the firm's 12 percent cost of capital, Project W has a_______expected return.
a. lower
b. higher
1. Project X has a______expected return.
a. higher
b. lower
2. Project Y has a_______expected return
a. lower
b. higher
3. Project Z has a______expected return.
a. higher
b. lower
B. Project W should be_______.
a. accepted
b. rejected
1. Project X should be______.
a. accepted
b. rejected
2. Project Y should be_______.
a. accepted
b. rejected
3. Project Z should be_______.
a. accepted
b. rejected
c. If the firm's overall cost of capital were used as a hurdle rate, Project W would be_______.
a. correctly accepted
b. incorrectly rejected
c. correctly rejected
d. incorrectly accepted
1. Project X would be______.
a. correctly accepted
b. incorrectly accepted
c. correctly rejected
d. incorrectly rejected
2. Project Y would be_______.
a. correctly rejectedin
b. correctly accepted
c. incorrectly rejected
d. correctly accepted
3. Project Z would be________.
a. incorrectly accepted
b. correctly rejected
c. incorrectly rejected
d. correctly accepted.
Answer:
A. Compared with the firm's 12 percent cost of capital, Project W has a_______expected return.
a. lower1. Project X has a______expected return.
b. lower2. Project Y has a_______expected return
b. higher3. Project Z has a______expected return.
a. higherB. Project W should be_______.
b. rejected1. Project X should be______.
b. rejected2. Project Y should be_______.
a. accepted3. Project Z should be_______.
a. acceptedc. If the firm's overall cost of capital were used as a hurdle rate, Project W would be_______.
c. correctly rejected1. Project X would be______.
c. correctly rejected2. Project Y would be_______.
b. correctly accepted3. Project Z would be________.
b. correctly rejectedExplanation:
Project Beta IRR expected return
W .62 9.2% = 5% + (0.62 x 7%) = 9.34%
X .77 10.3 % = 5% + (0.77 x 7%) = 10.39%
Y 1.27 14.1 % = 5% + (1.27 x 7%) = 13.89%
Z 1.42 17.0% = 5% + (1.42 x 7%) = 14.94%
A. Compared with the firm's 12 percent cost of capital, Project W has a expected lower return 1 is lower, 2 is higher, 3 is higher. B. Project W should be rejected, 1 is rejected, 2 is accepted and 3 is accepted. C. Project W would be correctly rejected, 1 is correctly rejected, 2 is correctly accepted and 3 is correctly rejected. The correct options are A is a, 1 is b, 2 is b, 3 is a, B is b, 1 is b, 2 is a, 3 is a and C is c, 1 is c, 2 is b and 3 is b.
The cost of capital is a company's computation of the minimal return required to justify embarking on a capital budgeting project, like building a new plant.
Analysts and investors use the term cost of capital interchangeably, but it always refers to whether the expense of a proposed choice can be justified. Investors may also use the phrase to describe an assessment of an investment's prospective return in proportion to its cost and hazards.
Learn more about capital, here:
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Ronald is an assistant librarian at the local public library but hopes to be able to become a head librarian in the near future. For him to accomplish this, he must move to another location. To help him find openings in other locations, he has joined the American Library Association and will be attending their national conference next month. He is excited about meeting and talking with fellow librarians about their jobs across the United States. This is an illustration of
Answer:
Ronald, the Librarian
What Ronald is doing "is an illustration of" Networking in practise.
Explanation:
According to investopedia.com, "Networking is the exchange of information and ideas among people with a common profession or special interest, usually in an informal social setting. Networking often begins with a single point of common ground."
The advantages of networking include, strengthening connections through information sharing, acquisition of fresh ideas, knowledge, and perspectives, avenue for career advancement and access to job opportunities, and the reception of career advice and support. It also builds one's confidence through the process of interaction with more knowledgeable professionals. Those who seek, find. And "iron sharpens iron," as people rob minds.
Networking also helps to develop and improve skill set, stay on top of the latest trends in your industry, keep a pulse on the job market, meet prospective mentors, partners, and clients, and gain access to the necessary resources that will foster your career development.
ete is a California resident who is serving in California when he is transferred to Virginia under Temporary Duty (TDY) assignment. His salary is $3,000 per month. Pete is transferred on April 1 of the current year. How much of his income is taxable in California
Answer:
$36,000
Explanation:
Temporary duty can't change anything when someone is domiciled in the state and a responsible resident of the state, therefore his whole income would be taxable as usual whether he is in the state or out of state.
Workings:
Financial year= 12 months
Monthly salary = $3,000
Taxable income= $3,000 x 12 months
Taxable income = $36,000
Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2020–2023 are as follows:
Service Revenue Collections Pretax Accounting Income
2015 $560,000 $545,000 $100,000
2016 660,000 665,000 165,000
2017 625,000 600,000 135,000
2018 610,000 635,000 115,000
There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 40%.
Required:
a. Prepare the appropriate journal entry to record Alsup's 2013 income taxes.
b. Prepare the appropriate journal entry to record Alsup's 2014 income taxes.
c. Prepare the appropriate journal entry to record Alsup's 2015 income taxes.
Answer:
Alsup ConsultingIncome Taxesa. Journal Entries for 2015:
Debit Income Tax Expense $40,000
Credit Income Tax Payable $34,000
Credit Deferred Tax Liability $6,000
To record the income tax for the year.
b. Journal Entries for 2016:
Debit Income Tax Expense $66,000
Debit Deferred Tax Asset $2,000
Credit Income Tax Payable $68,000
To record the income tax for the year.
c. Journal Entries for 2017:
Debit Income Tax Expense $54,000
Credit Income Tax Payable $44,000
Credit Deferred Tax Liability $10,000
To record income tax for the year.
d. Journal Entries for 2018:
Debit Income Tax Expense $46,000
Debit Income Tax Payable $56,000
Credit Deferred Tax Asset $10,000
To record income tax for the year.
NB: There is confusion with the years in the question. So, I decided to give the journal entries for the four years.
Explanation:
a) Service Collections Pre-tax Tax Temporary
Revenue Accounting Income Differences
Income
2015 $560,000 $545,000 $100,000 $85,000 ($15,000)
2016 660,000 665,000 165,000 170,000 5,000
2017 625,000 600,000 135,000 110,000 (25,000)
2018 610,000 635,000 115,000 140,000 25,000
b) Accounting Tax Temporary Differences
Income Tax Income Tax Income Deferred Tax
2015 $100,000 $40,000 $85,000 $34,000 ($15,000) ($6,000) L
2016 165,000 66,000 170,000 68,000 5,000 2,000 A
2017 135,000 54,000 110,000 44,000 (25,000) (10,000) L
2018 115,000 46,000 140,000 56,000 25,000 (10,000) A
c) The temporary difference between taxes as per accounting income and taxes as per tax regulation is recorded in the books through Deferred tax asset or deferred tax liability. When accounting income is more than tax income it would imply more taxes need to be paid in future, so a deferred tax liability account is created.
d) Tax Computations: The prevalent tax rate of 40% is multiplied with the pre-tax accounting income, the pre-tax taxable income, and the temporary differences in income respectively to obtain their respective taxes. Ordinarily, the differences in the tax amounts of accounting income and taxable income is deferred tax asset/liability. The deferred tax asset and liability can still be obtained separately as we have done in this case. They give the same results.
Balt Company maintains a standard cost system. Last period, Balt spent $25,000 during the period to purchase 3,000 pounds of material H. The company used 5,000 pounds of Material H to produce 800 units of Product C8. The company has established a standard of 7 pounds of Material H per unit of C8, at a price of $7.50 per pound of material. The debit to direct materials control account isa. 25,000b. 22,500c. 41,667d. 37,500
Answer:
Balt CompanyDirect Materials Control Account:
Debit to the direct materials control account is
d. 37,500
Explanation:
a) Calculation:
Since 5,000 pounds were used at a standard price of $7.50, a debit to the direct materials control account would be $37,500 (5,000 x$7.50).
b) The direct materials control account is a memorandum account where the costs of direct materials are recorded to serve as a check and point of reconciliation with the subsidiary ledger of direct materials account. This debit shows the standard costs at actual production that is expensed for the period or during the process.
Which of the following is useful to combine the data of different segments using different software for the purpose of creating companywide budgets? A. budget creation manual B. budget management software C. financial analysis software D. accounting development manual
Answer:
B. budget management software
Explanation:
A budget management software would be the best option to combine different segments of data to create a companywide budget.
This is because one of the specific purposes of budget management software is to merge several budgets (for example, the budgets of a company's divisions) into a single one, larger budget (the companywide budget).
ldentify whether each statement in the following statement is true or false.
a. Businesses that do not adopt a differentiation, low-cost leadership, or focus strategy tend to be more successful than businesses that do adopt these strategies.
b. Employee abilities to create innovative products are critical for companies that adopt a low-cost leadership strategy.
c. Companies that use a focus strategy have narrow buyer groups.
Answer:
The answer is (a) False (b) False (c) True
Explanation:
Solution
(a)Businesses that do not acquire a differentiation,focus strategy, or low-cost leadership, is liable to be more successful than businesses that do adopt these strategies - False because Companies or business does not necessarily need to adopt differentiation methods or low cost leadership, they might have their own market strategy to succeed.
(b) Employee abilities to develop innovative products are important for companies that use a low-cost leadership strategy - False .
(c) Companies that use a focus strategy have narrow buyer groups -Focus strategy : This strategy is used when a company knows its segment and has products that can competitively satisfies its needs.In this case it is true.
For a business credit card, most companies that issue credit, including Visa and Mastercard, specifically state their liability policies:
Only cover the first $50.00 of liability
Cover up to $500 of liability
Are the same as their business card accounts
Do not apply to business card accounts
Answer: Cover up to $500 of liability
Explanation:
When one suspect that there has been unauthorized transactions in ones accounts which could be due to fraud, such business or person can make a complaint as soon as possible.
As soon as the report is made, the person is no longer in charge of the unauthorized use of such card. In a case whereby the loss is reported within two days, the liability is limited to $50 but when the report is made within 60 days after ones statement has been sent to the person or business, this may lead to a liability of $500.
Cover upto liability of $500. If the report is made within 60 days of receiving statement that shows fradulent transactions. If it is not reported within 60 days then the liability is unlimited.
Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. The Tannenhill Company data are expressed in dollars. The electronics industry averages are expressed in percentages.
1 Tannenhill Company Electronics Industry Average
2 Sales $4,000,000 100%
3 Cost of goods sold $2,120,000 60%
4 Gross profit $1,888,000 40%
5 Selling expenses $1,080,000 24%
6 Administrative expenses $640,000 14%
7 Total operating expenses $1,720,000 38%
8 Income from operations $160,000 2%
9 Other income $120,000 3%
10 $280,000 5%
11 Other expense $80,000 2%
12 Income before income tax $200,000 3%
13 Income tax expense $80,000 2%
14 Net income $120,000 1%
A. Prepare a common-size income statement comparing the results of operations for Tannenhill Company with the industry average. Enter all amounts as positive numbers.
B. As far as the data permit, comment on significant relationships revealed by the comparisons. As far as the data permit, comment on significant relationships revealed by the comparisons.
Answer:
Explanation:
Tannenhill % Industry
Sales 4,000,000 100 100
Cost of goods 2,120,000 53 60
Gross profit 1,880,000 47 40
Selling Expenses 1,080,000 27 24
Admin Expenses 640,000 16 14
Operating Expenses 1,720,000 43 38
Operating profit 160,000 4 2
Other income 120,000 3 3
Total income 280,000 7 5
Other Expenses 80,000 2 2
Income before tax 200,000 5 3
Income tax 80,000 2 2
Net Income 120,000 3 1
B)
Despite the fact that the selling and admin expenses pf Tannenhill was higher than the industry average , it had a better performance in the cost of goods management which in effect caused Tannenhill to record a greater net income percentage compared to the industry performance.
The other income and expenses was the same with the industry average , hence no impact on the overall performance.
Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows:
Direct materials $54.00
Direct labor 35.00
Variable overhead 40.00
Fixed overhead 34.00
Total $163.00
Crayola Technologies Inc. has contacted Rubium with an offer to sell 6,000 of the subassemblies for $144.00 each. Rubium will eliminate $89,000 of fixed overhead if it accepts the proposal. Should Rubium make or buy the subassemblies? What is the difference between the two alternatives?
Answer:
If the company buys the units, income will decrease by $1,000.-
Explanation:
Giving the following information:
Direct materials $54.00
Direct labor 35.00
Variable overhead 40.00
Crayola Technologies Inc. has contacted Rubium with an offer to sell 6,000 of the subassemblies for $144.00 each. Rubium will eliminate $89,000 of fixed overhead if it accepts the proposal.
First, we need to determine the total cost of making the units:
Total cost= total variable costs + avoidable fixed costs
Total costs= (54 + 35 + 40)*6,000 + 89,000= $863,000
Now, the cost of buying:
Total cost= 6,000*144= $864,000
If the company buys the units, income will decrease by $1,000.-
Edison has just paid an annual dividend of $3 per share. If the expected growth rate for Con Ed is 10%, and your required rate of return is 16%, how much are you willing to pay for this stock
Answer:
$55 per share
Explanation:
This can be calculated using the dividend discount model (DDM) formula as follows:
P = D1/(r - g) ............................ (1)
Where,
P = Current stock price or the amount you are willing to pay today
D1 = Next dividend = Current dividend * (1 + Growth rate) = $3 * (1 + 0.10) = $3.30
r = required return = 16%. or 0.16
g = growth rate = 10% = 0.10
Substituting the values into equation (1), we have:
P = $3.30 / (0.16 - 0.10) = $55 per share
Therefore, you are willing to pay $55 per share for this stock.
If all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, and the total materials used were 425 units, what kind of productivity measure could you use to compute productivity?
Answer:
partial measure
Explanation:
Based on the information provided it can be said that the kind of productivity measure that can be used would be a partial measure. Partial Productivity measure relates output to a single input unit. For example, capital productivity deals with output per unit of capital while energy productivity relates output per joule of energy used. In this scenario, we would need labor productivity which is output per hour worked.
Blythe and Cali do business as Diamond Investments. In acting on the firm's behalf,Blythe makes an honest error in overestimating the value of a particular stock purchase. To her firm,Blythe is:__________.
A) liable for breach of the duty of care.
B) liable for breach of the duty of accounting.
C) liable for breach of the duty of accounting.
D) not liable.
Answer:
D) not liable.
Explanation:
Duty of Care is the legal expectation from individuals and businesses in the course of discharging their duties, not to engage in conduct that could be foreseen to predispose others to danger or harm. The Duty of Accounting or accounting responsibility requires an accurate record of transactions. Liability implies being legally answerable. In business transactions, businessmen owe it to their customers to provide their services and products in the best possible way so as to prevent causing harm to them. Employees also owe it to the organization they work for to discharge their duties carefully to avoid causing them loss.
Blythe's honest error in overestimating the value of a particular stock purchase is a mistake that anyone can make and can be easily corrected. Her company would not go the long route of taking her to court over such a mistake. Therefore, Blythe is not liable to her company.
Crane Company incurs these expenditures in purchasing a truck: cash price $23,030, accident insurance (during use) $1,690, sales taxes $1,380, motor vehicle license $670, and painting and lettering $2,140. What is the cost of the truck
Answer:
$27,220
Explanation:
Cost of the truck includes : Cash price + sales tax + motor vehicle license + painting and lettering
accident insurance would not be added because its a revenue expenditure as it will reoccur after a year.
$23,030 + $670 + $2,140 + $1,380 = $27,220
I hope my answer helps you
Answer:
$27,220
Explanation:
From the question above Crane company incurs the following expenditures in purchasing a truck
Cash price = $23,030
Accident insurance during use= $1,690
Sales tax= $1,380
Motor vehicle license= $670
Painting and lettering= $2,140
Therefore, the cost of the truck can be calculated as follows
= $23,030+$1,380+$670+$2,140
= $27,220
The accident insurance is not added to find the cost of the truck because it doesn't add any value and can happen again the following year.
Hence the cost of the truck is $27,220
. Nestle Co. paid $130,000 for a machine used to mill oats. The annual contribution margin from oat sales is $60,000. The machine could be sold for $80,000. The opportunity cost of producing the oats is ________. Question 20 options: $130,000 $0 $80,000 $20,000 $60,000
Answer:$80,000
Explanation:
Opportunity cost refers to an alternative forgone that is the value one could have received but declined to take the next best alternative according to his or her preference.
Here , Nestle has two choices to make, it can decide to produce oats or sell the machine, but taking the option of producing oats leaves the option of selling the machine at $80,000 as the Opportunity cost.
To illustrate the law of large numbers (see also Exercise 5.54 on page 172), use the normal approximation to the binomial distribution to determine the probabilities that the proportion of heads will be anywhere from 0.49 to 0.51 when a balanced coin is flipped
(a) 100 times;
(b) 1,000 times;
(c) 10,000 times.
Answer:
(a) 0.1585
(b) 0.4713
(c) 0.9545
Explanation:
The random variable X can be defined as the number of heads.
The coin provided is balanced, i.e. P (H) = P (T) = 0.50
The outcome of tossing the coin are: (H and T). Each of these outcomes are independent of each other.
The random variable X thus follows a Binomial distribution with probability of success as 0.50.
For a large sample a Normal approximation to binomial can be applied to approximate the distribution of p if the following conditions are satisfied:
1. np ≥ 10
2. n(1 - p) ≥ 10
(a)
n = 100
Check the conditions as follows:
[tex]np=100\times 0.50=50>10\\\\n(1-p)=100\times(1-0.50)=50>10[/tex]
Thus, a Normal approximation to binomial can be applied.
So, [tex]p\sim N(0.50,\ 0.05 )[/tex]
Compute the probability hat the proportion of heads will be anywhere from 0.49 to 0.51 as follows:
[tex]P(0.49<p<0.51)=P(\frac{0.49-0.50}{0.05}<\frac{p-\mu}{\sigma}<\frac{0.51-0.50}{0.05})[/tex]
[tex]=P(-0.20<Z<0.20)\\\\=P(Z<0.20)-P(Z<-0.20)\\\\=0.57926-0.42074\\\\=0.15852\\\\\approx 0.1585[/tex]
Thus, the probability hat the proportion of heads will be anywhere from 0.49 to 0.51 when a balanced coin is flipped 100 times is 0.1585.
(b)
n = 1000
Check the conditions as follows:
[tex]np=1000\times 0.50=500>10\\\\n(1-p)=1000\times(1-0.50)=500>10[/tex]
Thus, a Normal approximation to binomial can be applied.
So, [tex]p\sim N(0.50,\ 0.016 )[/tex]
Compute the probability hat the proportion of heads will be anywhere from 0.49 to 0.51 as follows:
[tex]P(0.49<p<0.51)=P(\frac{0.49-0.50}{0.016}<\frac{p-\mu}{\sigma}<\frac{0.51-0.50}{0.016})[/tex]
[tex]=P(-0.63<Z<0.63)\\\\=P(Z<0.63)-P(Z<-0.63)\\\\=0.73565-0.26435\\\\=0.4713[/tex]
Thus, the probability hat the proportion of heads will be anywhere from 0.49 to 0.51 when a balanced coin is flipped 1000 times is 0.4713.
(c)
n = 10,000
Check the conditions as follows:
[tex]np=10000\times 0.50=5000>10\\\\n(1-p)=10000\times(1-0.50)=5000>10[/tex]
Thus, a Normal approximation to binomial can be applied.
So, [tex]p\sim N(0.50,\ 0.005)[/tex]
Compute the probability hat the proportion of heads will be anywhere from 0.49 to 0.51 as follows:
[tex]P(0.49<p<0.51)=P(\frac{0.49-0.50}{0.005}<\frac{p-\mu}{\sigma}<\frac{0.51-0.50}{0.005})[/tex]
[tex]=P(-2<Z<2)\\\\=P(Z<2)-P(Z<-2)\\\\=0.97725-0.02275\\\\=0.9545[/tex]
Thus, the probability hat the proportion of heads will be anywhere from 0.49 to 0.51 when a balanced coin is flipped 10,000 times is 0.9545.
Under which conditions would a plant manager elect to use a fixed-order quantity model as opposed to a fixed-time period model? What are the disadvantages of using a fixed-time period ordering system?
Answer: The answers are provided below
Explanation:
The fixed order quantity system is an arrangement whereby the inventory level is typically continuously monitored and also the replenishment stock is ordered based on the previously-fixed quantities while for a fixed time period model, the inventory levels are checked on regular basis for the items e.g every week.
A plant manager may elect to use a fixed-order quantity model as opposed to a fixed-time period model when the holding cost is much higher. Typically, fixed order quantity model is typically used for the costly items.
The disadvantages of using a fixed-time period ordering system are:
i. It doesn't consider market structure changes
ii. There should be a high level of inventory in order to avoid stock out.
iii. It leads to rigidity in the system as it makes the decision on time period complex when there's need for urgency.
After examining a planning gap, firms typically attempt to decide if the time horizon should be increased or decreased. perform a SWOT analysis with their major competitor as the focus. use statistical trend analysis to interpret the results. exploit a positive deviation and correct a negative deviation. adopt a product-market focus.
Answer: exploit a positive deviation and correct a negative deviation
Explanation:
A planning gap is the difference that occurs in revenue or profits gap when current strategies are not changed. The gap analysis can help in the identification of gaps in the market. Therefore, when an organization compares its forecast profits to the company's desired profits, the planning gap will be shown.
When the actual results are lesser than the planned result, the organization would have to fill the gap with a marketing program which has been revised and sometime with new goals. Therefore, the firm can then decide whether to exploit wither a positive deviation and correct a negative deviation.
Bob wants to help his daughter, Violet, upgrade her home. Bob buys a new refrigerator and oven for Violet on credit from a home supply store. He instructs the home supply store to deliver the new appliances to Violet's home for installation. Which of the following is true with regard to this scenario?
a. Bob's promise to pay the home supply store must be in writing.
b. Bob's promise to pay the home supply store can be oral.
c. Bob's liability to the home supply store is quasi-contractual in nature.
d. Bob's promise to pay the home supply store is void.
Answer:
A
Explanation:
must be in writing
hope it helps
Five years ago you took out a 30-year mortgage with an APR of 6.5% for $200,000. If you were to refinance the mortgage today for 20 years at an APR of 4.25%, how much would your monthly payment change by?
Answer:
-$104.79
Explanation:
Current Mortgage Payment:
P/Y = 12,
N = 360,
I/Y = 6.5,
PV = $200,000,
Solve
for PMT = $1,264.14
Current Mortgage Balance:
P/Y = 12,
N = 300,
I/Y = 6.5,
PMT = $1,264.14,
Solve
for PV = $187,221.9
New Mortgage Payment:
P/Y = 12,
N = 240,
I/Y = 4.25,
PV = $187,222.54,
Solve
for PMT = $1,159.35
Current Payment - New Payment
= $1,159.35- $1,264.14
= -$104.79
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales $ 405,000 Beginning merchandise inventory $ 27,000 Purchases $ 270,000 Ending merchandise inventory $ 13,500 Fixed selling expense $
Missing information:
Fixed administrative expense $ 16,200 Variable selling expense $ 20,250 Variable administrative expense $ ? Contribution margin $ 81,000 Net operating income $ 24,300
1. Prepare a contribution format income statement.
2. Prepare a traditional format income statement.
3. Calculate the selling price per unit.
4. Calculate the variable cost per unit.
5. Calculate the contribution margin per unit.
Answer:
First we must determine cost of goods sold = $27,000 + $270,000 - $13,500 = $283,500
now we must find total variable costs = total sales - contribution margin = $405,00 - $81,000 = $324,000
variable administrative expenses = total variable costs - COGS - variable selling expense = $324,000 - $283,500 - $20,250 = $20,250
1. Prepare a contribution format income statement.
Total sales $405,000
Cost of goods sold $283,500
Gross contribution margin $121,500
Variable selling expense $20,250
Variable adm. expense $20,250
Contribution margin $81,000
Fixed period expenses:
Fixed selling expense $40,500Fixed administrative expense $16,200Net operating income $24,300
2. Prepare a traditional format income statement.
Total sales $405,000
Cost of goods sold $283,500
Gross profit $121,500
Operating expenses:
Selling expenses $60,750
Adm. expenses $36,450
Net operating income $24,300
3. Calculate the selling price per unit.
$4054. Calculate the variable cost per unit.
$3245. Calculate the contribution margin per unit.
$81Evans Inc. had current liabilities at April 30 of $69,400. The firm's current ratio at that date was 1.7. Required: Calculate the firm's current assets and working capital at April 30. Assume that management paid $14,300 of accounts payable on April 29. Calculate the current ratio and working capital at April 30 as if the April 29 payment had not been made. (Round "Current ratio" answer to 2 decimal places.) Identify the changes, if any, to working capital and the current ratio that would be caused by the April 29 paym
Answer:
See explanation below
Explanation:
Given:
Current liabilities at April 30 of $69,400
Current ratio = 1.7
a) Calculate the firm's current assets and working capital at April 30:
Use the formula below to find the firm's current assets:
current ratio= current asset/current liability
current asset = current ratio × current liability
current asset = 1.7 × $69,400
Current asset = $117,980
For working capital:
Working capital= current assets-current liability
= $117,980 - $69,400
= $48,580
Working capital = $48,580
b) Calculate the current ratio and working capital at April 30 as if the April 29 payment had not been made:
New current assets = $117,980 + $14,300 = $132,280
New current liability = $69,400 + $14,300 = $83,700
Working capital = $132,280 - $83,700 = $48,580
Current ratio = 132,280/83700 = 1.58
c) There is no change in the working capital.
The current ratio will decrease by 0.12 (1.7 - 1.58) due to payment on 29th April
Green Company is planning to introduce a new product with a 75 percent incremental unit-time learning curve for production in batches of 1,500 units. The variable labor costs are $55 per unit for the first 1,500-unit batch. Each batch requires 200 hours. There are $15,000 in fixed costs not subject to learning. What is the cumulative total time (labor hours) to produce 3,000 units
Answer:
210 hours
Explanation:
The learning curve rate can be found by log75%
Ln0.75 = 0.12249
1 batch requires 200 hours
The 1500 units batch will require 200 hours
For 3000 units there will be two batches of 1500 units each
200 hours * 2 batches * 0.12249 * 4.5 = 210 hours
At the beginning of the period, the Grinding Department budgeted direct labor of $19,800 and property tax of $51,000 for 1,100 hours of production. The department actually completed 1,500 hours of production.
Required:
Determine the budget for the department, assuming that it uses flexible budgeting.
Answer:
Budget for the Grinding department is $78,000, assuming that it uses flexible budgeting.
Explanation:
Note: Fixed cost remain constant at any level of production
Budgeted Direct labor at 1,100 hours of production is
= Budgeted direct labor / hours
= 19,800 / 1,100
=$18 per hour
Direct labor cost at 1,500 hours of production is:
=1,500 * $18
=$27,000
Budget for the Grinding department at 1,500 hour of production is:
=Direct labor cost + Property tax
=$27,000 + $51,000
=$78,000
1. Because of sanctions over their involvement in Ukraine in 2014, the Bank of Russia has raised its benchmark interest rate from 8% to 9.5%. What affect does this have on the exchange rate for the Russian Rubble versus the Euro
Answer:
This would make the rubble more attractive than the euro when investing.
Explanation: The effects of this increase in interest rate, is it would make it more expensive when planning on borrowing money in Russia. Which would make the rubble more attractive than the euro from an investors or investment part, as more money can be made when euro is converted back to rubble. This would help drive up the cost of rubble.