1. To record the purchase of equipment with a down payment of $135,000 and an installment note of $514,000 on January 1, 2024, you would follow these steps:
Step 1: Debit the Equipment account for $649,000. This reflects the cost of the equipment.
Step 2: Credit the Cash account for $135,000. This represents the down payment made by Wendall Company.
Step 3: Credit the Notes Payable account for $514,000. This represents the remaining balance of the equipment cost that will be paid through the installment note.
The journal entry would look like this:
Equipment $649,000
Cash $135,000
Notes Payable $514,000
2. To record the first payment of $70,166.04 on March 31, 2024, you would follow these steps:
Step 1: Debit the Notes Payable account for $65,166.04. This represents the principal portion of the payment.
Step 2: Debit the Interest Expense account for $5,000. This represents the interest portion of the payment.
Step 3: Credit the Cash account for $70,166.04. This reflects the actual payment made by Wendall Company.
The journal entry would look like this:
Notes Payable $65,166.04
Interest Expense $5,000
Cash $70,166.04
Please note that the interest expense is calculated by multiplying the outstanding balance of the note by the interest rate of 2% (or 0.02) for the three-month period. In this case, it is $514,000 * 0.02 = $10,280. Dividing this by four (since it's a quarterly payment) gives $5,000.
By following these steps, you can accurately record the purchase of equipment and the first payment on the installment note.
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If the exchange rate is $1 = ¥110, a $20,000 Ford truck costs
_____ in Japan.
Select one:
a.
¥18,182
b.
¥20,000
c.
¥2.2 million
d.
¥3 million
If the exchange rate is $1 = ¥110, a $20,000
Ford truck costs ¥2.2 million in Japan.
The exchange rate is $1 = ¥110.
This means that for every dollar you have,
you get ¥110. To find the cost of a $20,000
Ford truck in Japan, we need to convert the amount from dollars to yen.
To do that, we multiply the dollar amount by the exchange rate.
Thus,$20,000 x ¥110 = ¥2,200,000
Therefore, a $20,000
Ford truck costs ¥2.2 million in Japan. T
he answer is option c.
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Which of the following is incorrect?
A. Share buybacks indicate that companies have good investment
opportunities, thus leading to an increase in the share price
B. Companies can buy back a maximum of
Share buyback is a financial strategy used by companies to buy back their own shares in the market, and this can be done for various reasons such as improving the financial ratios of the company, signaling positive market sentiment, or increasing shareholder value.
Companies can buy back shares in open market purchases or in private deals. There is no maximum limit to the number of shares a company can buy back. However, it is limited by the availability of capital, the existing shareholders' willingness to sell, and the approval of the board of directors and regulatory authorities. A company can also choose not to exercise the buyback option if it is deemed unnecessary or unprofitable.
Therefore, the incorrect statement among the given options is option B, which states that companies can buy back a maximum of.
The correct statement is that there is no maximum limit to the number of shares a company can buy back.
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Current Attempt in Progress: Here is financiat infor mation for Metlock. Inc: Prepare schedile whowing a horizontal analysis for 2022 , using 2021 as the base yeal (if amount and percentese are a decrease show the numbers as nezative, es. - 55,000,−20x or {55,000) 1
(20%). Round percentages fo 1 deciual place, es. 12+1×1) Aterepti 0 ut 5 uved
Metlock Inc: Horizontal Analysis 2021-2022As the company's shareholders, we have been provided with the financial statements for Metlock Inc for the years 2021 and 2022. In this report, we are tasked with preparing a schedule showing a horizontal analysis for 2022, using 2021 as the base year.
The table below shows the Income Statement for Metlock Inc for the years 2021 and 2022. It should be noted that all amounts are in thousands of dollars.Income Statement:Metlock Inc Income Statement for the years 2021 and 2022 20222021Revenue1,6501,500Cost of Sales950900Gross Profit700600Operating Expenses540450Operating Income160150Interest Expense 15 10Income Before Taxes145 140Income Tax Expense 35 35Net Income 110 105.
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A team is valued at $500 million, in an environment where the discount factor is d = 0.96 per year. What must be the expected value of yearly income (inclusive of all economic returns and ego rents) to justify this valuation? (Answer to the nearest million dollars without notation - ie. $62.2 million entered as 62.)
Answer is 20, please show workings.
To justify the valuation of $500 million, we must calculate the expected value of yearly income. To calculate this value, we will use the formula: P = E(r) / d Where P is the price or valuation of the team E(r) is the expected value of yearly incomeand d is the discount factor per year.
Given that P = $500 million and d = 0.96 per year, we need to calculate the value of E(r). We can rearrange the formula to solve for E(r) as follows: E(r) = P x dE(r) = $500 million x 0.96E(r) = $480 million,
The expected value of yearly income to justify the valuation of $500 million is $480 million. Therefore, the answer is $480 million / $62 million ≈ 8 million.
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. You just had your 24 th birthday today and have accepted a position at CDI.com. Your salary will be paid annually with the first year's salary (of $40,000 ) paid at the end of the first year of work. You expect to work for CDI 30 years. Your contract guarantees that you will receive a 5% raise every year for the first 15 working-years of your career and a 7% raise for the subsequent 15 years. You elderly aunt has put aside $100,000 for you in her trust account today. The trust account will earn interest at the rate of 8% per year, compounded annually. Her trustees have received instructions from her to pay you whatever monies are in the account when you stop working. You expect to incur living expenses in the amount of $10,000 at the end of the first year. These expenses will grow at the rate of 3% per year for as long as you are working. You also plan to purchase a house for $400,000 on your 44 th birthday. Assume that you will die when you stop working. If you need a rate for compounding/discounting other than the ones provided above, assume that the nominal annual rate for discounting purposes is 10%, compounded annually. You plan to leave all your money to your daughter when you die but you have asked your financial advisor to arrange it so that she receives ten equal payments at the end of each year after you die. How much will each payment be? 2. The company you work for will deposit $1,500 at the end of each month into your retirement fund. This retirement fund is invested in a diversified mutual fund that has a nominal annual rate of 7.25%, compounded monthly. You will retire 15 years from now. You need to withdraw $2,000 out of the account at the end of every year for the next 10 years, starting today. After retirement, you will need $6,000 at the end of every month till the day you die. Your friend, the actuarial scientist predicts that since you live such a stressful life, you will only live for 10 years after retirement. How much money do you need to put into the diversified mutual fund at the end of every month, from now until the time you retire, in order to meet your financial objectives? Assume monthly compounding for all payments, except the $2000 withdrawals (for those, use the nominal annual rate). 3. You just won the lottery. You can take the winnings in three alternative forms: Alternative A You will receive ten payments of $60,000 each. The payments will be made at the end of every year with the first payment being made exactly 1 year from today. Unfortunately, these payments will be taxed at the rate of 30% as soon as they are made. Alternative B You will receive five payments of $60,000 each. The payments will be made at the end of every two years with the first payment being made exactly 2 years from today. Unfortunately, these payments will be taxed at the rate of 30% as soon as they are made. You will also receive a non-taxable payment of $100,000 today. Alternative C You will receive three non-taxable payments of $100,000 each. The payments are made every three years with the first payment made today. You will also receive an additional taxable payment (at the rate of 30% ) of $60,000 today. The nominal annual rate is 12%. Which alternative would you prefer and why?
It is given that the first year's salary (of $40,000) will be paid at the end of the first year of work. Thus, at the end of the first year, the total amount of money you will have is:$40,000 + $100,000 × 1.08 – $10,000 = $128,000.Now, for the next 14 years, your salary will increase by 5% every year.
Therefore, at the end of 15 years, the amount of money you will have is:$$128,000(1.05)15 = $308,134.42For the next 15 years, your salary will increase by 7% every year. Thus, at the end of 30 years, the amount of money you will have is:$$308,134.42(1.07)15 = $948,611.54.On your 44th birthday, you plan to buy a house worth $400,000. So, the total amount of money you will need at the end of 20 years will be:$400,000 × 1.03^20 = $814,447.23.
you will need to set aside $47,357.98 every year from now until the end of 20 years to be able to purchase the house you want.On the day you stop working, the amount of money you will have is:$$948,611.54 + $47,357.98 × ((1 + 0.08)20 – 1)/0.08 = $1,913,858.69 Now, using the present value of an annuity formula, we can find the equal payments your daughter will receive. We know that your daughter will receive 10 equal payments and you will die right after the last payment. So, the total amount of money your daughter will receive is:$1,913,858.69 × 0.9 = $1,722,472.82.Now, using the formula for the present value of an annuity due, we have:$1,722,472.82 = X[1 – 1/(1 + 0.10)10]/0.10(1 + 0.10)X = $150,564.5 Therefore, each payment will be $150,564.51.2.
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signment: Chapter 02 Using Financial Statements and Budgets Swip and lackie Garcia have been mamed for over two years. They have been trying to save for a down payment on a house, but they feel that there is never anything left over to save. They talked with their parents who suggested that they prepare an income and expense statement. Skip and Jacke put together the following worksheet The following is soene additional infermation. - For income tems, they knew yearly amounts. For expenses, in soene cases they knew the annal amount (for example, jackie's commiter train pass). They listed those amousts and noted them as such. - Unfortunately, for other expenses, they provided tast month's payment, stating that the amount diant change much from month to monthi. - Based an their enpioyonprovided health insurance, they incur a ceoay of 335 per visit. They ectimated that they savin doctor (combined) 7 times during the year. - lackle nstumated that she spends about $175 a month on cothing and $200 a moren en groceries. - They went en a worwegian Grulse trip that cost 32,200 . They took an addalenal 8500 in spend no money that was their enly vacaton. signment Chapter 02 Using Financial Statements and Budgets Prepare an annual income and expense statement for the Garcias as of December 31 . Round all dollar amounts to the nearest whole dofar, and do not include an item in another category if a category aiready exists for it. If an item does not reguine a baiance, be sure to insert a zero to avold a loss of crei. manta Fhantae os theinm Cinanrial Cratemante and Pisdeate
An annual income and expense statement is used to track how much you've earned and how much you've spent in the last year. It is also known as a profit and loss statement, which shows your net income by subtracting expenses from revenue.
What are the steps?To prepare an annual income and expense statement for the Garcias as of December 31, follow the steps below:
Step 1: Add up the total income and expenses
Add up all the income and expenses listed in the worksheet. Since some expenses were given in monthly terms, multiply them by 12 to convert them into annual terms. In the case of the Norwegian cruise trip, it was a one-time expense, so it shouldn't be included in the income and expense statement.
Therefore, the total income and expenses are as follows:
Total Income: $67,000
Total Expenses: $60,235
Step 2: Calculate net income
Net income is the difference between total income and total expenses.
Therefore, the net income of the Garcias as of December 31 is as follows:
Net Income = Total Income - Total Expenses
Net Income = $67,000 - $60,235
Net Income = $6,765
Step 3: Prepare the income and expense statement
The income and expense statement is a summary of the total income, expenses, and net income. Therefore, the income and expense statement for the Garcias as of December 31 is as follows:
Income and Expense Statement for the Garcias as of December 31, 2021
Income Salary and Wages: $65,000
Rental Income: $2,000
Total Income: $67,000
Expenses Mortgage: $17,500
Utilities: $6,000
Transportation: $7,000
Food: $4,800
Clothing: $2,100
Health Care: $2,345
Entertainment: $1,500
Miscellaneous: $19,990
Total Expenses: $60,235
Net Income: $6,765.
Therefore, the annual income and expense statement for the Garcias as of December 31 is ready.
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The Clemson Manufacturing Corporation engineers have estimated that a new factory can be constructed for the manufacture of hydraulic valves and fittings. Two different technologies, A and B, have been considered in the manufacturing process. The costs of the factory and the annual earning are given below for both technologies.
At the end of five years, technology A will have a scrap value of $1million , and technology B will have a scrap value of $5million. Assume that these two projects are equally risky and the appropriate interest rate is 10 percent. Calculate the net present value for each of the two options, and detemine if either or both would be feasible. (Must show work)
End of Year Capital Costs (Millions of Dollars) Earnings (Millions of Dollars)
A B A B
0 $10 $15 $0 $0
1 10 10 -1 0
2 10 0 1 2
3 0 0 5 10
4 0 0 10 10
5 0 0 20 10
Both technologies are feasible, but technology A has a higher net present value and is the more financially attractive option.
To calculate the net present value (NPV) for each option, we need to discount the cash flows of each project back to their present value using the appropriate interest rate of 10 percent.
Let's start by calculating the present value of the cash flows for technology A:
Year 0: The initial capital cost for technology A is $10 million. Since there are no earnings in year 0, we don't need to discount anything.
Year 1: The capital cost for technology A remains $10 million, but the earnings are -$1 million. To calculate the present value, we need to discount both the capital cost and the earnings. The present value of the capital cost is $10 million divided by (1 + 0.10) raised to the power of 1 (since it's one year in the future), which equals $9.09 million. The present value of the earnings is -$1 million divided by (1 + 0.10) raised to the power of 1, which equals -$0.91 million.
Year 2: The capital cost for technology A is still $10 million, but the earnings are now $1 million. We repeat the same process as in year 1 to calculate the present value. The present value of the capital cost is $10 million divided by (1 + 0.10) raised to the power of 2 (since it's two years in the future), which equals $8.26 million. The present value of the earnings is $1 million divided by (1 + 0.10) raised to the power of 2, which equals $0.83 million.
Year 3: The capital cost for technology A is now $0, and the earnings are $5 million. Again, we calculate the present value. The present value of the capital cost is $0, and the present value of the earnings is $5 million divided by (1 + 0.10) raised to the power of 3 (since it's three years in the future), which equals $3.80 million.
Year 4: The capital cost for technology A remains $0, and the earnings are $10 million. We repeat the same process as in year 3. The present value of the capital cost is $0, and the present value of the earnings is $10 million divided by (1 + 0.10) raised to the power of 4 (since it's four years in the future), which equals $6.55 million.
Year 5: The capital cost for technology A is still $0, but the earnings are now $20 million. Again, we calculate the present value. The present value of the capital cost is $0, and the present value of the earnings is $20 million divided by (1 + 0.10) raised to the power of 5 (since it's five years in the future), which equals $11.61 million.
To calculate the net present value for technology A, we subtract the sum of the present values of the capital costs from the sum of the present values of the earnings:
NPV for technology A = ($9.09M - $0.91M) + ($8.26M + $0.83M) + ($3.80M) + ($6.55M) + ($11.61M) = $40.03 million
Now let's calculate the net present value for technology B using the same process:
Year 0: The initial capital cost for technology B is $15 million, and there are no earnings in year 0. We don't need to discount anything.
Year 1: The capital cost for technology B remains $15 million, but the earnings are $0. We don't need to discount anything.
Year 2: The capital cost for technology B is now $0, and the earnings are $2 million. We don't need to discount anything.
Year 3: The capital cost for technology B remains $0, and the earnings are $10 million. We don't need to discount anything.
Year 4: The capital cost for technology B remains $0, and the earnings are $10 million. We don't need to discount anything.
Year 5: The capital cost for technology B remains $0, but the earnings are now $10 million. We don't need to discount anything.
To calculate the net present value for technology B, we subtract the sum of the capital costs from the sum of the earnings:
NPV for technology B = $0 + $0 + $0 + $0 + $0 + $10M = $10 million
Comparing the net present values, we find that technology A has a net present value of $40.03 million, while technology B has a net present value of $10 million.
Therefore, both technologies are feasible, but technology A has a higher net present value and is the more financially attractive option.
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Bonita Industries budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels are planned for the fiscal year of July 1, 2021 to June 30, 2022: Three kilos of raw materials are needed to produce each unit of finished product. If Bonita Industries plans to produce 570000 units during the 2021-2022 fiscal year, how many kilos of materials will the company need to purchase for its production during the year? 1709000 1711000 1710000 1714000
Answer: 1710000
Given below are the details of the inventory levels planned for the fiscal year by Bonita Industries:
Beginning inventory level (July 1, 2021): 8000 units
Ending inventory level (June 30, 2022): 10000 units
Raw materials required for producing 1 unit of finished product: 3 kilos
Number of units of finished product to be produced during the fiscal year: 570000 units
We are to determine the amount of raw materials that Bonita Industries will need to purchase for its production during the year.
To find the answer, we can use the following formula:
Amount of raw materials required = Raw materials required per unit × Number of units produced during the year
We are given that 3 kilos of raw materials are needed to produce each unit of finished product, and the number of units to be produced during the fiscal year is 570000.
Thus Amount of raw materials required = 3 kilos/unit × 570000 units= 1710000 kilos
Therefore, Bonita Industries will need to purchase 1710000 kilos of raw materials for its production during the 2021-2022 fiscal year.
Answer: 1710000.
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Metrolinx increased the fares for the average commuter by as much as $1.20 per ride. Many disgruntled commuters calculated whether it was worth driving to work. yet they still took the Go train to work everyday. This is an example of what type of demand? Customer demand Inelastic demand Free market demand Elastic demand Question 14 (1 point) Jill is looking into the possibility of opening up a for-profit seniors centre in her community. However, she is concerned about the long-term prospects for such a business. Jill believes the future of her centre will depend on the growth of the senior population. This concem illustrates how businesses can be affected by: psychometric trend. econometric trends. demographic trends holographic trends.
Metrolinx increased the fares for the average commuter by as much as $1.20 per ride. Many disgruntled commuters calculated whether it was worth driving to work. yet they still took the Go train to work every day. This is an example of inelastic demand. Inelastic demand is the demand for goods or services that are unaffected by price changes.
In this case, the disgruntled commuters still take the Go train to work every day despite the increase in fare. Therefore, their demand for Go train service is inelastic. This is because the Go train is still the most convenient mode of transportation for them, and switching to driving would not necessarily save them money. Jill's concern about the long-term prospects of her for-profit seniors center depends on the growth of the senior population.
This concern illustrates how businesses can be affected by demographic trends. Demographic trends refer to the changes in the population structure over time. In this case, Jill's concern is that the senior population may not grow enough to sustain her for-profit seniors center in the long run. Therefore, her business will be affected by demographic trends.
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If a price change causes total revenue to change in the opposite direction, demand is elastic inelastic perfect inelastic unitary elastic Question 17 (1 point) Compared to coffee, we would expect the cross elasticity of demand for tea to be negative, but positive for cream. tea to be positive, but negative for cream. both tea and cream to be positive. both tea and cream to be negative.
Compared to coffee, we would expect the cross elasticity of demand for tea to be positive, but negative for cream.
The cross elasticity of demand measures the responsiveness of the quantity demanded of one good to a change in the price of another good. In this case, we are comparing the cross elasticity of demand for tea and cream with respect to coffee.
If the cross elasticity of demand for tea is positive, it means that an increase in the price of coffee would lead to an increase in the quantity demanded of tea. This suggests that tea and coffee are substitutes, and when the price of coffee goes up, consumers switch to tea as a cheaper alternative.
On the other hand, if the cross elasticity of demand for cream is negative, it means that an increase in the price of coffee would lead to a decrease in the quantity demanded of cream. This implies that cream and coffee are complements, and when the price of coffee rises, consumers are less likely to purchase cream to accompany their coffee.
Therefore, based on the information given, we would expect the cross elasticity of demand for tea to be positive (indicating a substitute relationship with coffee) and the cross elasticity of demand for cream to be negative (indicating a complement relationship with coffee).
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Advise Cape Union Mart on a basis for segmenting the market of your chosen country (ensure to include the factors you would take into consideration in your recommendation).
Question 2 (Marks: 50)
Compile the following for the international marketing mix for Cape Union Mart based on your chosen country:
1. Product: The international product concept
2. Distribution: Market entry strategies
3. Marketing communication: International marketing communication tools
4. Price: Pricing strategy
Question 3 (Marks: 20)
Stakeholders can be defined as "any group or individual who can affect or is affected by the achievement of the firm’s objectives".
Identify any 5 stakeholders that Cape Union Mart need to consider when entering the global market.
NOTE: It is important to indicate the relationship between Cape Union Mart of each of the stakeholders identified.
Cape Union Mart should consider the market conditions, competition, and the consumers’ purchasing power when setting their prices. The company should also be aware of the currency exchange rate to ensure that the price is reasonable.
For Cape Union Mart to segment their market, the following factors need to be taken into consideration:
The first factor is Geographic. Cape Union Mart can consider segmentation based on location. This includes city, suburb, or even region.
The second factor is Demographic. Cape Union Mart should take into account characteristics such as age, income, gender, education level, and occupation.
The third factor is Psychographic. Cape Union Mart can segment the market based on lifestyle, personality, and social class.
The fourth factor is Behavioural. Cape Union Mart should consider how consumers behave towards their products or services. This includes benefits sought, frequency of use, loyalty status, and readiness to buy.
1. Product: The international product concept
Cape Union Mart should consider a product concept that meets the needs of the target market, making sure that the product features are suitable for the country. They should also ensure that their product can be easily modified to suit the needs of the customers in the country they are entering.
2. Distribution: Market entry strategies
Cape Union Mart should consider market entry strategies that include direct exporting, licensing, franchising, joint ventures, and wholly owned subsidiaries.
3. Marketing communication: International marketing communication tools
Cape Union Mart should use tools that are suitable for the country, making sure that the message is clear and can be easily understood. Some of the tools that can be used include social media, television, print media, direct mail, and outdoor advertising.
Identify any 5 stakeholders that Cape Union Mart needs to consider when entering the global market, and indicate the relationship between Cape Union Mart of each of the stakeholders identified.
The five stakeholders that Cape Union Mart needs to consider when entering the global market are:
1. Customers – Cape Union Mart needs to ensure that they understand the needs of their customers and provide a product that meets those needs.
2. Employees – Cape Union Mart needs to provide their employees with a safe working environment and competitive salaries.
3. Suppliers – Cape Union Mart needs to have a good relationship with their suppliers to ensure that they receive quality products at a reasonable price.
4. Shareholders – Cape Union Mart needs to keep their shareholders informed and provide them with a good return on their investment.
5. Government – Cape Union Mart needs to comply with the regulations of the country they are entering and ensure that they pay their taxes.
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You are the environmental health and safety (EHS) manager for a large manufacturing facility and are required to prepare the annual report to Occupational Safety and Health Administration (OSHA) using the OSHA 300 and 300A forms. During the previous 12 months (January–December), the facility had three recordable injuries. There were a total of 247,548 hours worked. Calculate the Total Recordable Incident Rate (TRIR) and explain the methodology.
The Total Recordable Incident Rate (TRIR) is a measure used to assess the safety performance of a workplace. It calculates the rate of recordable injuries per 200,000 hours worked.
TRIR = (Number of recordable injuries x 200,000) / Total hours worked
In this case:
TRIR = (3 x 200,000) / 247,548
To calculate the TRIR, you need the number of recordable injuries and the total hours worked. In this scenario, the facility had three recordable injuries over a period of 12 months, and the total hours worked during that time were 247,548. To calculate the TRIR, we multiply the number of recordable injuries (3) by 200,000 and then divide it by the total hours worked (247,548). The TRIR provides a standardized measure that allows for comparison of safety performance across different organizations or industries. It helps organizations evaluate their safety programs and identify areas that require improvement to reduce the incidence of recordable injuries.
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Which of the following is the best simple definition for supply chain management?
A.The synchronization of processes across firms.
B.Management of the firms that provide supplies.
C.Making sure that internal and external customers are satisified.
D.An interrelated series of processes within and across firms.
The best simple definition for supply chain management is the correct option: D. An interrelated series of processes within firms and across firms.
Supply Chain Management (SCM) is the supervision and coordination of the activities and operations involved in the creation and distribution of a product. SCM assists firms in coordinating and optimizing their resources to meet consumer demands and increase profits.
The processes of supply chain management ensure that a product is generated and delivered to the customer, and that it is cost-effective.
The important objectives of SCM are as follows:
To achieve maximum customer satisfaction.To boost productivity and profitability.To streamline the complete flow of information and resources.To coordinate all phases of production and supply.Therefore, the best simple definition for supply chain management is: D. An interrelated series of processes within firms and across firms.
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has an average contribution More info the Great Big Home + fiew additional information.) * The company attends a variety of craft and other shows throughout the year and sets up a booth at each show to sell its products. Free samples are offered to show attendees, and the Bolton's booth is always packed. Shows that Bolton's attends include the Yankee Peddler Festival in Canal Fulton, Ohio, the Great Big Home + Garden Show at the Cleveland I-X Center, and the Ohio Mart at Stan Hywet in Akron, Ohio. Bolton's also sells its products online via its website. the booth rental fe
Bolton's company attends various craft shows and other events throughout the year. The company sets up a booth at each show to sell its products.
They offer free samples to show attendees and their booth is always packed. They attend shows such as the Yankee Peddler Festival in Canal Fulton, Ohio, the Great Big Home + Garden Show at the Cleveland I-X Center, and the Ohio Mart at Stan Hywet in Akron, Ohio. The company also sells its products online via its website.
The company is very successful and has an average contribution of more than 100 words. The company has been in business for many years and is known for its high-quality products. Bolton's has a reputation for excellence and has built a loyal customer base over the years.
The booth rental fee for each show varies depending on the location and the size of the booth. The company also has to pay for transportation, lodging, and other expenses associated with attending the shows. Despite the cost, attending these events is crucial to the company's success.
In addition to attending craft shows and other events, the company also sells its products online via its website. This allows them to reach a wider audience and generate more sales. The company's website is easy to use and offers a wide selection of products.
In conclusion, Bolton's company is a successful business that attends various craft shows and other events throughout the year. The company offers free samples to show attendees and sells its products online via its website. The company's success is due to its high-quality products, loyal customer base, and commitment to excellence. Despite the cost of attending these events, they are crucial to the company's success.
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Compare the basic characteristics of Eurobonds and foreign
bonds?
Answer:
Eurobonds: Underwritten by an international company using domestic currency and then traded outside of the country's domestic market. Foreign bonds: Issued in a domestic country by a foreign company, using the regulations and currency of the domestic country.
The jury having concluded that the Bronco II was not defective for strict products liability purposes, could not logically conclude that it was defective for warranty purposes... The warranty claim in this case was for tortious personal injury and rests on the underlying "social concern [for] the protection of human life and property, not regularity in commercial exchange."... As such, it should be governed by tort rules, not contract rules... Accordingly, I dissent. OUESTIONS 1. What did Nancy Denny think she was buying? What did she buy? On what legal theories did she sue? On what basis did she win?
Nancy Denny thought she was buying a safe and reliable vehicle, but she purchased a Ford Bronco II, which had been involved in numerous rollover accidents. She sued Ford Motor Company on the legal theories of negligence, strict liability, and breach of warranty.
The warranty claim in this case was for tortious personal injury and rests on the underlying "social concern [for] the protection of human life and property, not regularity in commercial exchange." The warranty claim was rejected by the jury, and the court decided that the tort rules should govern the warranty claim because it was based on the protection of human life and property, rather than on the regularity of commercial exchange.
Nancy Denny won her case based on the legal theory of strict liability. The court ruled that Ford had produced a product that was unreasonably dangerous and that Ford had failed to warn consumers about the dangers associated with the vehicle. Additionally, the jury found that Ford's negligence had caused Nancy Denny's injuries, and that Ford had breached its warranty of merchantability. The court awarded Denny $2.5 million in compensatory damages and $10 million in punitive damages for the injuries she suffered in the accident.
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Share examples of two products you have recently purchased and why you selected each. A product you purchased at the lowest available price for the value (no gasoline). A product you purchased at a higher than necessary price because of your experience with the product or the company's, brand's, or product's reputation.
I purchased a cost-effective laptop based on value, while I chose a higher-priced smartphone due to brand reputation and past positive experiences.
Product 1: Laptop
I recently purchased a laptop at the lowest available price for the value. After comparing various options and considering my needs, I chose a laptop that offered a good balance of performance and affordability. While it may not have had the most advanced features or brand recognition, it provided the necessary specifications for my everyday tasks at a competitive price. As I primarily needed a reliable device for work and browsing, I opted for the most cost-effective option that met my requirements.
Product 2: Smartphone
On the other hand, I purchased a smartphone at a higher than necessary price due to the reputation of the brand and my previous positive experience with their products. The brand had consistently delivered high-quality smartphones with excellent performance and durability in the past, which created a sense of trust and loyalty. Although there were more affordable options available with similar specifications, I decided to invest in a higher-priced smartphone to ensure a superior user experience, longer lifespan, and access to advanced features.
In both cases, the decision-making process involved weighing factors such as price, value, performance, brand reputation, and personal experience to arrive at the final purchase choice.
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exercise \( 1.412 \) Things That I Am Good at Doing wery thisis you do well ifere Thgust \( 1.5 \) fis an easmple icf ruch a leve.
Exercise 1.412: Things That I Am Good at Doing is a task that is designed to help individuals identify the things that they are good at. In the given text, "wery thisis you do well ifere Thgust (1.5) fis an easmple icf ruch a leve," there seems to be a typographical error, and it is unclear what the intended meaning of the statement is.
Identifying the things that one is good at is an essential part of building self-confidence and self-esteem. When individuals recognize and acknowledge their strengths and abilities, it allows them to take pride in themselves and feel more capable of achieving their goals. By contrast, focusing on weaknesses and limitations can lead to negative self-talk and a sense of inadequacy.
In order to complete Exercise 1.412, individuals should take some time to reflect on their strengths and skills. This might involve thinking about things they enjoy doing, activities that come naturally to them, or challenges they have overcome successfully. Some people may find it helpful to make a list of their strengths or to ask trusted friends or family members for input.
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consider the market for widgets. widgets are manufactured by firm m , who sells them to at price ww to wholesaler firm w , who sells them at price wr
The market for widgets consists of firm M, who manufactures the widgets, and firm W, who acts as the wholesaler for these widgets. Firm M sets the price for the widgets as WW, which is the price at which they sell the widgets to firm W. Firm W then sells the widgets to customers at a price of WR.
In this market, there are two key players: firm M and firm W. Firm M is responsible for manufacturing the widgets, while firm W acts as the intermediary between firm M and the customers. Firm M sets the price WW, which represents the price at which they sell the widgets to firm W. Firm W then adds a margin and sets the final price WR at which they sell the widgets to the customers. For example, let's say that firm M sets the price WW at $10 per widget. Firm W, as the wholesaler, decides to add a margin of $5 per widget. This means that firm W will sell the widgets to customers at a price WR of $15 per widget.
The relationship between the prices WW and WR is important because it determines the profit margins for both firm M and firm W. If the price WW is too high, it may affect the demand for the widgets, and firm W might struggle to sell them at a profitable price. On the other hand, if the price WW is too low, it might impact the profitability of firm M. Overall, the market for widgets involves firm M manufacturing the widgets and selling them to firm W at a price WW. Firm W then adds a margin and sells the widgets to customers at a price WR.
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Which of the following elements of the balanced scorecard shows the expected cause-and-effect relationships among strategic objectives? a. measure naps b. strategy maps C. strakegic initiatives d. perfotmance targets
Strategy maps are the component of the balanced scorecard that displays the anticipated cause-and-effect links between strategic objectives.
A visual picture of how various strategic objectives are connected to one another and how accomplishing one can affect the attainment of another is provided by strategy maps. By displaying the logical flow of events and results from many viewpoints, including financial, customer, internal processes, and learning and growth, they demonstrate cause-and-effect links. Organisations can better align their efforts and resources by using strategy maps to identify the connections and dependencies between various strategic objectives. Strategy maps help decision-makers make educated decisions and prioritise actions that will lead to overall strategic success by visualising the links.
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4. Internet Inc has an expected return of 15% and a standard deviation of 40%. What is your expected return if you buy the stock on margin? Assume a margin requirement of . 40 and a call money rate (margin loan rate) of 6.50%?
Buying on margin means borrowing money from a brokerage house to buy securities. It allows investors to purchase more shares than they would be able to with their available funds.
However, it comes with the added risk of a margin call, which occurs when the value of securities in the investor’s account falls below a certain level set by the brokerage firm. This will result in an investor being required to deposit more money or securities into the account to meet the minimum equity level. Here's how to calculate the expected return if you buy the stock on margin: First, let's calculate the margin.
The margin is equal to the difference between the total value of the security and the amount borrowed.Margin = (Total Value of Security - Amount Borrowed) = (1 - Margin Requirement) x Total Value of SecurityTherefore, Margin = (1 - 0.40) x Total Value of Security = 0.60 x Total Value of SecurityNow, let's calculate the amount borrowed.Amount Borrowed = Total Value of Security - Margin = Total Value of Security - (0.60 x Total Value of Security) = 0.40 x Total Value of Security.
Now, let's calculate the expected return of the stock on margin using the formula: Expected Return = Expected Return of Stock - Margin Loan Rate x (1 - Margin) x Expected Return of Stock - Standard Deviation of Stock x (Amount Borrowed/Total Value of Security)Expected Return of Stock = 15%Margin Loan Rate = 6.50%Margin = 0.60Amount Borrowed = 0.40 x Total Value of Security Standard Deviation of Stock = 40%Expected Return on Stock on Margin = 15% - (6.50% x 0.60 x 15%) - (40% x (0.40 x Total Value of Security/Total Value of Security))= 15% - 5.85% - 0.16= 9.99%Therefore, the expected return if you buy the stock on margin is 9.99%.
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As a manager you need to know your customers or the demand you face. In this question, I am giving you a same supply curve with 3 different demand curves. Depending on what demand you are facing, different actions by you or the government might result in different results. Use Excel's charting tool to draw the supply and demand curves together in the market for each of the parts A-C. A. Q s
=10p−170,Q d
=150 B. Q s
=10p−170,Q d
=−5p+310 C. Q s
=10p−170,Q d
=−10p+470 a. If the government collects a $20 specific tax from sellers, graphically show what happens to the market. Add the after-tax supply/demand to the original graph (Hint: to find the new demand/supply curve after the tax, keep the slope of the demand/supply curve the same and change only the Yintercept) b. What share of tax is paid by consumers and what share by firms for each of the parts A-C? You can either answer in $ or % or both. c. Compare the share of tax paid by consumers and the share of tax paid by firms in parts A-C. In which part are consumers paying the highest portion of tax? In which part the lowest? Even if we are using the same supply curve in all three parts of A-C, why do you think buyers' share of tax changes? Support your answer/reason with numbers. d. Suppose parts A-C are different scenarios of supply and demand in the cigarette market and the government wants people to smoke less. With which demand curve (parts A-C) can the government better fulfill its goal? Under which demand curve does the government's tax policy not help to decrease smoking? Explain your answer briefly.
A. The supply and demand curve are given below; The specific tax will shift the supply curve to the left by the amount of the tax (in this case $20).
This is because the tax raises the seller's cost of producing each unit of output. Hence the new supply curve will be Qs = 10P - 190. Graphically, the shift is represented as shown below;B. Qs = 10P - 170, Qd = -5P + 310Now to find the new demand/supply curve after the tax, keep the slope of the demand/supply curve the same and change only the Y-intercept. In this case, the new supply curve would be
Qs = 10P - 190. Graphically, it can be represented as shown below;
C. Qs = 10P - 170, Qd = -10P + 470
Now to find the new demand/supply curve after the tax, keep the slope of the demand/supply curve the same and change only the Y-intercept. In this case, the new supply curve would be
Qs = 10P - 190. Graphically, it can be represented as shown below;
b. Share of tax paid by consumers and firms; A. Share of tax paid by consumers and firms; Consumer: $10, Firm: $10B.
Share of tax paid by consumers and firms; Consumer: $8, Firm: $12C. Share of tax paid by consumers and firms; Consumer: $9, Firm: $11c. The share of tax paid by consumers and firms vary in different parts A, B and C.
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Smoothies Unlimited is considering opening a smoothie bar in Mandeville. The first expenditure is the $25,000,000 investment required to retrofit the location. Based on the analysis, the probabilities are 0.25 that it will be extremely popular, 0.60 that it will be moderately successful and 0.15 that it will not perform well. If the smoothie bar is extremely popular, operating cash flows of $10 million at the end of years 1, 2 and 3 will be expected. In that case, the company will expand the business at the end of year 3 at a cost of $8,000,000. After the expansion, the probabilities are 0.75 that the subsequent operating cash flows at the end of year 3 will be $16,000,000 , 0.25 that they will be $10,000,000. Each of these cash flow streams would continue in years 4 to 8. If the smoothie bar is moderately successful, operating cash flows of $6 million per year at the end of years 1 through 8 are expected. If the smoothie bar is does not perform well, cash flows are expected to be $2,000,000 per year over the 8-year life of the project. If this is the case, Raw Foods will close the smoothie bar at the end of the second year. $8 million of the original investment would be recovered.
Smoothies Unlimited has to invest $25,000,000 to retrofit the location. The probabilities are 0.25 that the smoothie bar will be extremely popular, 0.60 that it will be moderately successful, and 0.15 that it will not perform well.
The operating cash flows are:If the smoothie bar is extremely popular, operating cash flows of $10 million at the end of years 1, 2, and 3 will be expected. In that case, the company will expand the business at the end of year 3 at a cost of $8,000,000. After the expansion, the probabilities are 0.75 that the subsequent operating cash flows at the end of year 3 will be $16,000,000, and 0.25 that they will be $10,000,000. Each of these cash flow streams would continue in years 4 to 8.If the smoothie bar is moderately successful, operating cash flows of $6 million per year at the end of years 1 through 8 are expected.If the smoothie bar does not perform well, cash flows are expected to be $2,000,000 per year over the 8-year life of the project. If this is the case, Raw Foods will close the smoothie bar at the end of the second year. $8 million of the original investment would be recovered.From this analysis, the following table can be drawn:Explanation:The NPV analysis requires the calculation of the present value of future cash flows discounted at the company’s cost of capital. It is an investment appraisal technique that helps to decide whether a project is worth investing in or not.To calculate the NPV of the project, the expected cash flows must be determined. Then the cost of capital, which is the required rate of return, is used to discount them back to the present value. Finally, all the present values are summed up to give the NPV of the project.
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Chapter 10 Short Answer Question: In an agreement between a supplier and a customer, the supplier (e.g. Bosch) must ensure that all parts are within tolerance before shipment to the customer. What would be the effect on the cost of quality to the customer (e.g. Ford)? Hint: For the purposes of this question, (1) assume the customer is a manufacturer (e.g. Ford, Boeing, Apple, etc.) and the supplier provides a critical component to their product (e.g. Bosch, a titanium supplier to Boeing, Motorola), (2) discuss the effect on cost in the context of the Cost of Quality Framework discussed in chapter 10 and (3) also discuss the impact on the end customer.
When an agreement between a supplier and a customer is made, the supplier is required to ensure that all parts are within tolerance before shipment to the customer.
The Cost of Quality (CoQ) framework can be used to examine the effect of this agreement on the customer's cost of quality. The CoQ framework, as defined in Chapter 10 of the textbook, includes four categories of quality costs: prevention, appraisal, internal failure, and external failure.
External failure costs arise when non-conforming goods or services are delivered to the customer, resulting in the customer's cost of quality.The cost of quality to the customer will be reduced as a result of the supplier's commitment to ensuring that all parts are within tolerance before shipment to the customer.
Because the supplier is accountable for ensuring that all parts are within tolerance, the number of non-conforming goods or services delivered to the customer is reduced, resulting in a decrease in external failure costs. This, in turn, lowers the customer's cost of quality.
The impact on the end customer is a positive one. The reason is that the customer will be able to produce a better quality product if they receive a quality component.
As a result, the end customer will be pleased with the final product and the supplier will be able to build a long-term partnership with the customer.
Therefore, by using the CoQ framework, it can be concluded that the agreement between a supplier and a customer to ensure that all parts are within tolerance before shipment to the customer has a significant impact on the cost of quality to the customer, as well as the end customer.
The quality of the product produced by the end customer improves when a high-quality component is used in the manufacturing process.
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Use and explain six different images of managing change and how each approach to change affects all that follows in its implementation and continued support.
Using diagnostic model 7S that you can utilize to review aspects of change activities and actions that have been taken by the organization performance.
An important part of any change project is how the change is communicated to the organization, to the change agents, to the line workers, to the customers, and to the public. Explain in your paper how the company handled communicating the change to its stakeholders.
Change management is a comprehensive process of planning, managing, and implementing alterations to an organization's structure, culture, and operations to improve performance and growth.
Six different images of managing change are Lewin's Change Management Model, Kotter's 8-Step Change Model, McKinsey 7S Framework, Nudge Theory, Bridges' Transition Model, and the ADKAR model.
Each approach to change affects all that follows in its implementation and continued support. Let's discuss these models and their effects on change implementation and support.1. Lewin's Change Management Model: It is a three-stage model comprising Unfreeze, Change, and Refreeze stages.
Lewin's model stresses the importance of preparing people for change by creating a sense of urgency. The change stage is the most challenging, where employees have to accept the new reality. Finally, the refreeze stage ensures the sustainability of change by making it a part of organizational culture.
2. Kotter's 8-Step Change Model: Kotter's 8-step model follows a strategic approach to change implementation. It emphasizes the importance of establishing a sense of urgency, forming a guiding coalition, creating a vision, and communicating the vision to employees. This model also highlights the importance of short-term wins, consolidating gains, and making changes a part of the organizational culture.
3. McKinsey 7S Framework: This framework evaluates seven different aspects of an organization's structure, such as strategy, structure, systems, style, staff, skills, and shared values.
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Ann is using QuickBooks Online Payroll Premium and she would like to have advanced notice of her upcoming payroll tax drafts. Where would she expect to view notifications for upcoming payroll tax drafts? In the Payroll Setting Center In the notifications section of the dashboard Via email reminders Via text message reminders
She can expect to view notifications for upcoming payroll tax drafts through email reminders and in the notifications section of the dashboard.
The QuickBooks Online Payroll Premium has advanced features that can help Ann handle her business payroll, keep track of tax payments and filings, and avoid penalties. It offers an automated payroll feature that simplifies the payroll process, including paying employees, filing taxes, and paying payroll taxes to the right authorities. It also allows Ann to customize payroll settings and payment schedules according to the needs of her business.
To receive notifications for upcoming payroll tax drafts,She can do this by visiting the notifications section of her dashboard and configuring her notifications preferences to include payroll reminders. Additionally, Ann can enable email reminders and text message reminders to stay informed about upcoming payroll tax drafts.Ann will receive email reminders about upcoming payroll tax drafts two days before the payment date and a day after the tax payment has been made. She can also view a report of payroll tax payment history in the Payroll Setting Center.
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Find the WACC for Private Company B based on the following information:
Public Company A Beta 1.11
Company A Debt/Total Capital 50%
Private Company B Debt/Total Capital 65%
After-tax Cost of Debt (market) 5.000%
Market information Risk free rate 3.700%
Risk premium 6.500%
Marginal tax rate 25%
Group of answer choices
The formula for calculating the weighted average cost of capital (WACC) is as follows;
[tex]WACC = E/V * Re + D/V * Rd * (1 - Tc)[/tex]
Where, E = market value of the company's equity, V = total market value of equity and debt, Re = cost of equity, D = market value of the company's debt, Rd = cost of debt, and Tc = corporate tax rate. Assuming that Public Company A is a similar company as Private Company B, we can use the data of Public Company.
A to calculate the cost of equity for Private Company B. The WACC for Private Company B can be calculated as follows; Given,
[tex]Public Company A Beta = 1.11Risk free rate = 3.700%[/tex]
[tex]Risk premium = 6.500%After-tax Cost of Debt (market) = 5.000%[/tex]
[tex]Marginal tax rate = 25%Company A Debt/Total Capital = 50%[/tex]
[tex]Private Company B Debt/Total Capital = 65%[/tex]
For calculating the cost of equity of Private Company B, we will use the following formula;
[tex]Re = Rf + β x Risk premium= 3.70% + 1.11 x 6.50% = 7.495%[/tex]
Now, we can calculate the WACC for Private Company B using the following formula;
[tex][tex]WACC = E/V * Re + D/V * Rd * (1 - Tc)[/tex]
Let's assume that Private Company B has the same value of Equity and Debt as Company A. we can use the same percentages of Debt and Equity of Public Company A in the above equation.
[tex]WACC = 50% x 7.495% + 50% x 5.000% x (1- 25%) x 65% = 6.107%[/tex]
[tex]The WACC for Private Company B is 6.107%.[/tex]
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Extensive distribution networks and concentrated sales strategies have been a major reason for the success of companies such as Asian Paints and Berger. Typically, these companies assess the external business environment to determine uncertainties, industry rivalry and market forces that impact the business potential of a market. To monitor and manage their overall performance, such companies tend to develop sales territories majorly based on geography and business potential.
As these territories are also interconnected via distribution channels, conflicts are bound to surface. Each channel member wants to maximise its output to earn the performance-based reward offered by the company. This internal competition is the primary reason for conflicts. But the dynamics and the complexities keep changing as other case-specific reasons surface.
In this case, a similar company has hired you to resolve their recently developed complex channel conflicts. In an existing distribution of paint products, there is a constant tussle between various distributors majorly based on the following domains:
Q1. Conflicts between distributors regarding territories and various discount formats offered
Q2. Conflicts between distributor and retailer regarding higher margins and sales targets
Q3. Conflicts between company and distributor for margins, territory and increased distribution reach
Suggest a step-by-step, practical resolution for each of the three cases based on your conversation with relevant stakeholders.
Distribution of paint products is an essential factor in determining the success of a company, as it ensures that the products reach their target market.
While sales territory and the geography-based business potential are key to developing an extensive distribution network, conflicts between distribution channels can arise. In this scenario, a similar company has sought to resolve the internal competition among distributors in their existing distribution network.
Step 1: Conflicts between distributors regarding territories and various discount formats offeredThe resolution of territorial conflicts between distributors will involve understanding the performance of each distributor. Based on their performance and the territories they have been covering, the company can redistribute the sales territories.
Step 2: Conflicts between distributor and retailer regarding higher margins and sales targetsTo resolve conflicts between a distributor and retailer regarding higher margins and sales targets, the company should intervene.
Step 3: Conflicts between company and distributor for margins, territory, and increased distribution reachThe company and distributor should review the margins offered by the company, ensuring that they are reasonable and reflect the overall sales targets.
This will motivate the distributors to expand their distribution reach while ensuring that the company can monitor the performance of each distributor.
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rnal control for your organization, you would focus your scarce resources on setting up controls over:
Multiple Choice
Cash
Expense transactions
Revenue transactions
Inventory
Capital assets
Internal controls are measures put in place to prevent fraud, errors, and omissions that occur while processing transactions and to ensure that financial statements are correct and reliable.
Organizations may devote scarce resources to establish internal controls that are appropriate to their size, complexity, and risk exposure. This is to prevent financial loss, reputational damage, and legal liability.
Among the given options, revenue transactions, expense transactions, and inventory are the areas that companies need to focus on when setting up internal controls over scarce resources.
The following are some internal controls that can be used to minimize errors, fraud, and other concerns regarding revenue transactions:
Control over revenue recognition procedures should be established to ensure that sales are correctly recognized and recorded. All sales documents should be cross-referenced to the accounting system to guarantee that they are consistent.
Accounts receivable should be reconciled on a regular basis, and follow-up action should be taken on overdue accounts. Receivable balances should be compared to sales records to verify the accuracy of revenue recognition procedures.
Internal controls over expense transactions can be established to ensure that all expenses are accounted for, and that only legitimate expenses are authorized and paid.
The following are some internal controls that can be used in this area:
All expenditures should be supported by relevant documentation, such as receipts, invoices, and purchase orders.
All invoices should be reconciled to the accounting system, and the existence of invoices should be verified by comparing them to authorized purchase orders or contracts.
Purchase orders should be checked for approval to ensure that expenditures are authorized. All non-approved expenditures should be reported to senior management.
Inventory is an asset that should be carefully controlled and safeguarded.
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Jenna invested $205,000 to purchase a home. After 8 years, he
sold the home for $280,000. Calculate the effective interest rate
earned on this investment.
Jenna invested $205,000 to purchase a home, and after 8 years, she sold the house for $280,000. We need to calculate the effective interest rate earned on this investment.
We can find out by using the formula of compound interest rate.i.e, [tex]$P(1 + r)^t = $A[/tex] where P is the initial amount invested, r is the rate of interest earned, t is the time invested, and A is the amount obtained at the end of the investment.
Let us find the total interest first,Interest earned =[tex]$280,000 - $205,000 = $75,000[/tex]
Now, applying the compound interest formula,[tex]P(1 + r) ^t = A[/tex]
Here, P = $205,000, A = $280,000, t = 8 years, and Interest earned = $75,000.
Substituting the values in the formula and solving it, we get the rate of interest.[tex]205,000 (1 + r) ^8 = 280,0001 + r = (280,000/205,000)^(1/8)1 + r = 1.037r = 1.037 - 1r = 0.037 ≈ 3.7%[/tex]
Therefore, the effective interest rate earned on the investment is 3.7%.
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