Proximity refers to the closeness between a firm and something that can be beneficial to it. The text describes three types of proximity: Geographical proximity, Virtual proximity, and Social proximity. Geographical proximity: This is the physical closeness between a firm and its target.
A company should be located as close as possible to its target market so that it can supply its products and services at a lower cost. For example, a company that produces frozen food should be located close to the market where it sells its products, and a business that offers quick-delivery services should be situated close to the area where it delivers.
This is appropriate in the case of businesses that offer perishable goods and services that require quick delivery, as well as businesses that rely heavily on raw materials.Virtual proximity: This kind of proximity refers to the electronic or virtual closeness between a company and its customers or partners.
A company may establish virtual proximity by using the internet to create an online presence. This method of proximity is particularly effective in today's world of social media. It is appropriate for firms that want to reach out to a wider audience and offer online services or products.Social proximity: Social proximity refers to the closeness between the customers and the business owner.
A business owner who is well-known in the community will have social proximity. Social proximity is appropriate for small and local businesses that rely on community support. It can also be used to create a loyal customer base that will be willing to provide feedback and promote the business through word-of-mouth marketing.Metrics should be selected based on the firm's industry, business model, and target market.
To know more about Proximity visit:
https://brainly.com/question/31942085
#SPJ11
Select all that apply
Ideally, a positioning statement should identify which three things?
Ideally, a positioning statement should identify the target market, the unique value proposition, and the differentiation strategy.
A positioning statement should ideally identify the following three things:
1. Target Market: It is crucial to clearly define the target market or audience for the product or service. This includes understanding the demographics, psychographics, and specific needs of the intended customers. By identifying the target market, a positioning statement can be tailored to resonate with and address their specific requirements.
2. Unique Value Proposition: The positioning statement should communicate the unique value proposition of the product or service. This is the distinct benefit or advantage that sets it apart from competitors and appeals to the target market. It answers the question, "Why should customers choose this product or service over alternatives?"
3. Differentiation Strategy: A positioning statement should outline the differentiation strategy employed by the brand or company. This involves highlighting the key features, attributes, or benefits that differentiate the product or service from competitors in the market. It helps to establish a clear and compelling position in the minds of the target market.
By including these three elements in a positioning statement, a company can effectively communicate its target market, unique value proposition, and differentiation strategy. This enables them to create a distinct and memorable brand image in the market while appealing to their intended customers.
For more such questions on market, click on:
https://brainly.com/question/25309906
#SPJ8
the two businesses involved in an EDI transaction are called
transactional partners ?
Yes, the two businesses involved in an EDI transaction are called transactional partners. EDI (Electronic Data Interchange) is a technology that allows for the exchange of business data between different companies' computer systems.
This technology allows businesses to exchange business documents with other businesses in a standard electronic format, rather than in a paper-based format. Businesses that engage in EDI are known as transactional partners. EDI is a data exchange technology that eliminates the need for paper documents by electronically exchanging data between two or more organizations.
The two businesses involved in an EDI transaction are called transactional partners because they are exchanging data and conducting business together. EDI transactions are commonly used in supply chain management, e-commerce, and other industries that require the exchange of business data between two or more parties.
To know more about transaction visit:
https://brainly.com/question/32761288
#SPJ11
Determining Cash Receipts—Direct Method
Marshall Inc. had beginning balances (January 1) of $200,000 and $5,000 for accounts receivable and the allowance for doubtful accounts, respectively. During the year, the company had the following transactions.
Sales $900,000
Write-off of accounts 1,000
Cash collections on account receivable 850,000
Bad debt expense recorded 2,8001. Determine the cash receipts from customers reported in the operating activities section in the statement of cash flows assuming the direct method.
Answer
2. Reconcile sales to cash receipts from customers.
Sales Answer
Change in accounts receivable balance Answer
Account write-offs Answer
Collection of accounts receivable previously written off Answer
Cash collections Answer
Sales: $900,000
Change in accounts receivable balance: Not provided
Account write-offs: $1,000
Collection of accounts receivable previously written off: Not provided
Cash collections: $850,000
To determine the cash receipts from customers reported in the operating activities section in the statement of cash flows using the direct method, we need to reconcile the sales figure with the cash collections. Let's go through the steps:
1. Sales: The given information states that sales for the year were $900,000.
2. Change in accounts receivable balance: To determine the change in accounts receivable, we need to calculate the difference between the beginning and ending balances. The beginning balance was $200,000, and we are not given the ending balance. Therefore, we cannot determine the change in accounts receivable.
3. Account write-offs: The company wrote off $1,000 of accounts during the year.
4. Collection of accounts receivable previously written off: The information provided doesn't mention any collections on previously written-off accounts.
5. Cash collections: The given information states that the company collected $850,000 on accounts receivable.
To summarize:
Sales: $900,000
Change in accounts receivable balance: Not provided
Account write-offs: $1,000
Collection of accounts receivable previously written off: Not provided
Cash collections: $850,000
Unfortunately, without the ending balance of accounts receivable or information on the collection of previously written-off accounts, we cannot determine the exact cash receipts from customers using the direct method.
Know more about accounts receivable balance here:
https://brainly.com/question/33725048
#SPJ11
The current version of IAS 12 has major changes from the one first issued in 1979. The original Standard basically allowed deferred tax to be calculated based on any method available – deferral or liability method, full or partial provision – and was based on an income statement approach. The current IAS 12 is based on a balance sheet approach, and the international accounting standard setter requires an entity to provide for deferred tax in full for all deferred tax liabilities with limited exceptions. Critically discuss the following statement: "Comparability requires that either all entities provide in full for deferred tax or that is always ignored."?
International Accounting Standards (IAS) 12 is a standard that provides guidance on the accounting treatment of income taxes, including deferred taxes, for entities. The current version of IAS 12 has undergone significant changes since it was first introduced in 1979.The original version of IAS 12 permitted deferred tax to be computed using any available method, whether deferral or liability method, full or partial provision, and was based on an income statement approach. However, the current version of IAS 12 is based on a balance sheet approach, and the international accounting standard setter requires an entity to provide for deferred tax in full for all deferred tax liabilities with limited exceptions.
Comparability is one of the qualitative characteristics of financial information, according to the International Financial Reporting Standards (IFRS). It is essential that the financial statements of entities are comparable to those of other entities to ensure that investors can make informed decisions. Therefore, there is a need to ensure that deferred tax is accounted for consistently across entities.
As a result, the statement "Comparability requires that either all entities provide in full for deferred tax or that is always ignored" is correct. This means that either all entities should provide in full for deferred tax or none should account for it. Failure to comply with this rule could result in inconsistencies across financial statements, making it difficult for investors to make informed decisions.
In conclusion, the current version of IAS 12 is based on a balance sheet approach, and the international accounting standard setter requires an entity to provide for deferred tax in full for all deferred tax liabilities with limited exceptions. Comparability requires that either all entities provide in full for deferred tax or that is always ignored.
To know more about guidance visit :
https://brainly.com/question/839980
#SPJ11
Mellon Inc. issued corporate bonds with a tenure of 10 years and a coupon rate of 6%. The maturity value of each bond is $1,000 and the interest payments are made on an annual basis. Required: a. Compute the price of each bond when the market rate and coupon rate are equal. (5 Marks) b. Compute the price of each bond when the market rate is 4%. (5 Marks) c. Compute the price of each bond when the market rate is 8%. (5 Marks) d. Explain the term structure of bonds using the answers to the above questions. (10 Marks)
a. Compute the price of each bond when the market rate and coupon rate are equal When the coupon rate is equal to the market rate,
the price of the bond is equal to its face value,
$1,000. This is because the yield to maturity (YTM) equals the coupon rate,
meaning that the bond is fairly priced .b.
Compute the price of each bond when the market rate is 4%.When the market rate falls to 4%, the bond's price would increase. The formula to calculate the bond price is:P = PMT × (1 - 1/(1 + i)n)/i + FV/(1 + i)nWhere:P = price of the bondFV = face value of the bondPMT = annual interest paymenti = market interest rate per periodn = number of periodsUsing the information given:
PMt = $1,000 × 6% = $60i = 4% / 1 = 0.04n = 10Therefore,P = $60 × (1 - 1/(1 + 0.04)10)/0.04 + $1,000/(1 + 0.04)10= $1,143.07c. Compute the price of each bond when the market rate is 8%.When the market rate increases to 8%, the bond's price would decrease.
Using the same formula as in part b:PMt = $1,000 × 6% = $60i = 8% / 1 = 0.08n = 10Therefore,P = $60 × (1 - 1/(1 + 0.08)10)/0.08 + $1,000/(1 + 0.08)10= $869.06d. Explain the term structure of bonds using the answers to the above questions.The term structure of bonds refers to the relationship between the yield to maturity and the time to maturity for bonds with similar credit ratings.
As the market rate fluctuates, it affects the bond's yield to maturity, and thus its price. When the market rate is equal to the coupon rate, the bond is priced at face value. When the market rate is lower than the coupon rate, the bond is priced at a premium, and when the market rate is higher than the coupon rate, the bond is priced at a discount. The bond price and yield to maturity are inversely related, meaning that when the bond price increases, the yield to maturity decreases, and vice versa.
To know more about Compute visit:
https://brainly.com/question/15707178
#SPJ11
the auditor’s report on a corporation’s financial statements is addressed to the president of the company.
The auditor's report on a corporation's financial statements is addressed to the president of the company. The auditor's report is a formal document created by an external auditor that assesses and verifies the accuracy and completeness of a corporation's financial statements.
This report contains an opinion about whether the financial statements are free from material misstatements and present a true and fair view of the corporation's financial position and performance. The report is addressed to the president of the company, which is the individual responsible for the corporation's financial statements. The auditor's report is typically included in the corporation's annual report and is intended to provide assurance to shareholders and other stakeholders that the financial statements are reliable and trustworthy.
The report also serves as a key component of the corporation's overall system of internal controls and helps to ensure that the corporation's financial reporting processes are transparent and effective. The auditor's report is a critical tool for ensuring the integrity of the financial reporting process and maintaining the confidence of stakeholders in the corporation's financial statements.
To know more about effective visit:
brainly.com/question/27328727
#SPJ11
onlineshop incorporated, ubiquitous incorporated, and travelmore corporation rely on various intangible assets to operate their businesses. these companies amortize the cost of these assets using the straight-line method over the following average estimated useful lives (in years), as reported in their annual reports. type of intangible asset onlineshop, incorporated ubiquitous, incorporated travelmore corporation developed technology 3.9 4.1 2.0 trade names 4.4 8.6 10.0 customer relationships 3.6 4.0 6.0 required: based on these estimates, identify the company that uses the longest periods for amortizing most of its classes of intangible assets.
Based on the average estimated useful lives reported in their annual reports, Travelmore Corporation uses the longest periods for amortizing most of its classes of intangible assets.
To identify the company that uses the longest periods for amortizing most of its classes of intangible assets, we need to compare the average estimated useful lives for each type of intangible asset.For developed technology, the average estimated useful lives are as follows: Onlineshop Incorporated: 3.9 years Ubiquitous Incorporated: 4.1 yearsTravelmore Corporation: 2.0 yearsFrom these estimates, we can see that Travelmore Corporation has the longest average estimated useful lives for both trade names (10.0 years) and customer relationships (6.0 years). While Onlineshop Incorporated and Ubiquitous Incorporated have longer estimated useful lives for developed technology (3.9 and 4.1 years, respectively), Travelmore Corporation's longer periods for trade names and customer relationships make it the company that uses the longest periods for amortizing most of its classes of intangible assets.
When comparing the average estimated useful lives for each type of intangible asset, we find that Travelmore Corporation uses the longest periods for amortizing most of its classes of intangible assets. The company's annual report indicates that they amortize their trade names over an average estimated useful life of 10.0 years and their customer relationships over an average estimated useful life of 6.0 years.In contrast, Onlineshop Incorporated has shorter estimated useful lives for both trade names (4.4 years) and customer relationships (3.6 years). Similarly, Ubiquitous Incorporated has shorter estimated useful lives for trade names (8.6 years) and customer relationships (4.0 years).
To know more about Travelmore Corporation visit:
https://brainly.com/question/8902191
#SPJ11
On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 45 -day note with a face amount of$300,000. Assume 360 days in a year. a. Determine the proceeds of the note, assuming the note carries an interest rate of6%.xb. Determine the proceeds of the note, assuming the note is discounted at6%
Determine the proceeds of the note, assuming the note carries an interest rate of 6%.x- Proceeds from the note are $43,200. Determine the proceeds of the note, assuming the note is discounted at 6%- Proceeds from the note = $42,552.
The interest rate is the sum that the lender pays the borrower in addition to the principal amount. A person who deposits money in a bank or other financial institution usually earns additional income in terms of the recipient, known as interest, taking into account the time value of money.
The quantity of interest due each period expressed as a percentage of the amount that was borrowed, deposited, or lent is known as an interest rate. The principal amount, interest rate, timing of compounding, and duration of the loan, deposit, as well as borrowing, determine the total amount of interest on a sum that was lent or borrowed.
Learn more about the Interest rate here:
https://brainly.com/question/14556630
#SPJ4
For Q1-Q5, please choose "True" or "False" of the following statements:
1. Financial accounting aims reporting to those outside the organizations.
2. Managerial accounting serves three main objectives: planning, controlling, compliance.
3. Intrinsic motivation includes performance goals and bonus compensation.
4. Contribution margin = sales - variable expenses.
5. Break-even point is the level of sales at which loss is zero.
1. True:Financial accounting is focused on reporting the financial information of a company to those outside the organization. It deals with the preparation of financial statements, income statements, balance sheets, cash flow statements, etc.
These reports are provided to individuals and organizations outside the company, such as investors, creditors, financial analysts, and government agencies. The purpose of financial accounting is to provide information to these individuals so that they can make informed decisions about investing or lending money to the company.2. False:Managerial accounting serves three primary purposes: planning, control, and decision-making. The main purpose of managerial accounting is to provide financial information that is useful in making decisions that will help achieve the company's goals.
3. False:Intrinsic motivation is motivation that comes from within an individual rather than from external factors such as rewards, bonuses, or other incentives. True:Contribution margin is the amount by which sales revenue exceeds variable costs. It is calculated by subtracting variable costs from sales revenue. The contribution margin is the amount that is available to cover fixed costs and generate a profit.5. True:The break-even point is the level of sales at which a company neither makes a profit nor incurs a loss. Therefore, the statement is true.
To know more about revenue visit:
https://brainly.com/question/29567732
#SPJ11
In the context of technological advancements, outsourcing, and offshoring, multinational corporations have moved certain production activities overseas to capitalize on _____.
Multinational corporations have moved certain production activities overseas to capitalize on various factors, which can include:
Cost advantages: Outsourcing and offshoring can allow companies to take advantage of lower labor costs in foreign countries. This can help reduce production expenses, increase profit margins, and remain competitive in the global market. Access to specialized skills and resources: Some countries may possess specific expertise, technologies, or resources that are valuable for certain production activities. Multinational corporations may opt to offshore production to leverage these specialized skills and resources that may not be as readily available domestically. Expanded markets: Moving production overseas can facilitate market expansion by establishing a local presence in foreign markets. Producing goods or services closer to the target market can lead to greater market responsiveness, reduced transportation costs, and improved customer service.
Learn more about corporations here:
https://brainly.com/question/32217998
#SPJ11
In addition to political considerations all of the following reasons for trade restriction except
a. equalizing a nation's balance of payments
b. protecting new and weak industries
c. protecting the health of citizens
d. protecting national security
e. all of the above
Trade restrictions are the laws and policies of the government or any other authorized organization that restrict or limit the import and export of goods and services between countries.
Political considerations play a significant role in the implementation of trade restrictions. Apart from political considerations, there are various other reasons for trade restrictions. They are as follows:Equalizing a nation's balance of payments: The balance of payments is the accounting of the transactions of a country with other countries.
Countries apply trade restrictions to keep their balance of payments favorable. They want to import less and export more to reduce their trade deficit.
To balance their payments, countries impose tariffs, quotas, and other trade barriers.Protecting new and weak industries: New industries are fragile, and they need protection. They are competing with established players in the international market, which is difficult for them.
They do not have enough capital, skilled labor, and technological advancements to compete with big players. To support new and weak industries, the government provides subsidies, imposes tariffs, quotas, and other trade barriers to protect their industries.Protecting the health of citizens: Trade restrictions are also imposed to protect citizens' health. It involves import restrictions on food, beverages, and other harmful items to protect citizens' health.
For example, countries impose restrictions on the import of tobacco and other harmful drugs to keep their citizens safe.Protecting national security: Countries may apply trade restrictions to protect their national security. For instance, they may ban the export of military goods, nuclear materials, or other items that can be used to make weapons. In conclusion, trade restrictions are applied to provide equal opportunities for local and foreign industries, protect citizens' health, balance payment, and protect national security.
Therefore, the correct answer to the question is option E - all of the above.
To know more about government visit:
https://brainly.com/question/4160287
#SPJ11
You are required to answer the following questions by showing relevant workings.
a. Asam Laksa Berhad just paid a dividend of RMI .95 per share on its common stock. The dividends are expected to grow at a constant rate of 6% per year indefinitely. If investors require an 11% return on Asam Laksa Berhad's common stock, find out the common stock price be in three years. b. Asam Pedas Berhad's common stocks price is growing quickly. Dividends are expected to grow at 30% per year during the next three years, with the growth rate falling off to a constant 6% thereafter. If the required rate of return on these common stocks is 13%, and Asam Pedas Berhad just paid RMI .80 dividend, determine the current share price. c. Bond X is a premium bond making annual payments. The bond pays an 8% coupon, has YTM of 6%, and has 13 years to maturity.
Bond Y is a discount bond making annual payments. This bond pays a 6% coupon, has YTM if 8%, and has 13 years to maturity.
If interest rate remains unchanged, compute the price on these bonds to be in:
i. one year ii. 10 year Based on your computation in part (i) and (ii), interpret your findings. (2 Mark
a. Given, Current dividend, D0 = RM0.95
Expected growth rate, g = 6%
Rate of return required by the investors, r = 11%
The growth rate of dividends will remain constant at 6%. Therefore, the dividend paid at the end of the first year, D1 = D0(1 + g) = RM0.95(1 + 0.06) = RM1.007After the end of the first year, the dividend will grow at a constant rate of 6% per annum.
Using the constant growth model, the stock price in 3 years, P3 = D4 / (r - g) = D0(1 + g)4 / (r - g) = RM0.95(1 + 0.06)4 / (0.11 - 0.06) = RM14.49
Therefore, the common stock price would be RM14.49 in three years.
b. Given, Current dividend, D0 = RM0.80
Expected growth rate, g1 = 30%
Growth rate of dividends after 3 years, g2 = 6%
Required rate of return, r = 13%
The dividend in the first year, D1 = D0(1 + g1) = RM0.80(1 + 0.30) = RM1.04
The dividend in the second year, D2 = D1(1 + g1) = RM1.04(1 + 0.30) = RM1.352
The dividend in the third year, D3 = D2(1 + g1) = RM1.352(1 + 0.30) = RM1.7576
Dividend after 3 years, D4 = D3(1 + g2) / (r - g2) = RM1.7576(1 + 0.06) / (0.13 - 0.06) = RM34.81
After one year, the interest rate will be changed. Thus the price of the bonds will also change. After 10 years, the change in the price of the bonds will be significant as the maturity period of the bond is 13 years. Interpretation of the findings: If the interest rate increases, the bond prices decrease, and vice versa. In the case of bond X, when the interest rate remains unchanged, the price of the bond is RM1,156.77.
When the interest rate increases after one year, the price of the bond will decrease, and when the interest rate decreases, the price of the bond will increase. However, for bond Y, the price of the bond will be RM918.35 when the interest rate remains unchanged, which will also change after one year depending upon the change in the interest rate.
To know more about dividend visit :
https://brainly.com/question/30030205
#SPJ11
Test Company projected the following unit sales for the next five quarters.
Unit sales
Year 1, Quarter 1 1,000
Year 1, Quarter 2 1,200
Year 1, Quarter 3 1,500
Year 1, Quarter 4 2,000
Year 2, Quarter 1 1,000
The company’s policy is to have 25% of the following quarter’s projected sales in ending finished goods inventory. The beginning inventory in Year 1 is expected to satisfy the inventory policy. Each unit required 2 lbs. of direct materials. Projected direct materials cost is $5.00 per lb. The company’s policy is to have 20% of the following quarter’s production needs in ending raw materials inventory. The beginning inventory in Year 1 is expected to satisfy the inventory policy. Determine the budgeted cost of direct materials purchases for Year 1, Quarter 1
Therefore, Raw Materials to be purchased = (Direct Materials Required for Production × 1.20) – Beginning Raw Materials Inventory
Raw Materials to be purchased = ([tex]3000 × 1.20) - 0 = 3600[/tex]
Given information: Unit sales Year 1, Quarter 1 = 1000Year 1, Quarter 2 = 1200Year 1, Quarter 3 = 1500Year 1, Quarter 4 = 2000Year 2, Quarter 1 = 1000
The company's policy is to have 25% of the following quarter's projected sales in ending finished goods inventory.
The beginning inventory in Year 1 is expected to satisfy the inventory policy. Each unit requires 2 lbs. of direct materials. Projected direct materials cost is $5.00 per lb.
The company's policy is to have 20% of the following quarter's production needs in ending raw materials inventory.
The beginning inventory in Year 1 is expected to satisfy the inventory policy.
Beginning Inventory + Ending Inventory= [tex]3600 - 0 + (3000 × 0.25 × $5.00)= $9,375[/tex]
Therefore, the budgeted cost of direct materials purchases for Year 1,
Quarter 1 is $9,375.
To know more about production visit:
https://brainly.com/question/30333196
#SPJ11
he Blue Sky Mining Corporation pays 28.8% corporate tax on its before-tax operating income of $2.55 million and a payout policy of 75.0%. The firm has two choices: either (1) to payout immediately and investors can re-invest their dividends in a 6.0% one-year Midnight Oil Treasury Bond, or (2) to retain the money, re-invest it in a 6.5% one-year Midnight Oil Treasury Bond (the firm gets a better rate because it is bigger client), and payout the proceeds as dividends one year from now. An Australian imputation tax paying shareholder with a marginal tax rate of 15.5% holds 15.0% of Blue Sky Mining Corporation's common equity. For Q1-2: If Blue Sky Mining Corporation paid out a dividend immediately: Q1. What is the shareholder's after-tax dividend income now?\$ (Give answer to the nearest one dollar) Q2. If Blue Sky Mining Corporation paid out a dividend immediately, what is the shareholder's total after-tax dividend income one year from $ (Give answer to the nearest one dollar) For Q3-4: If Blue Sky Mining Corporation paid out a dividend one year from now: Q3. What is the total cash dividend received by the shareholder at that time? $ (Give answer to the nearest one dollar) Q4. What is the shareholder's total after-tax dividend income at that time? $ (Give answer to the nearest one dollar) For Q5: The choice between payout policies: Q5. Which pavout policy would the shareholder prefer if they chose rationally? Select the correct answer).
Q5. The shareholder would prefer the immediate payout policy to maximize their after-tax dividend income and avoid investment risk.
Q1. The shareholder's after-tax dividend income now can be calculated by multiplying the before-tax dividend income by the shareholder's marginal tax rate. Since the payout policy is 75.0%, the dividend income would be 75.0% of the before-tax operating income. Thus, the after-tax dividend income now is:
$2.55 million * 75.0% * (1 - 15.5%) = $1,628,250
Therefore, the shareholder's after-tax dividend income now is approximately $1,628,250.
Q2. If Blue Sky Mining Corporation paid out a dividend immediately, the shareholder's total after-tax dividend income one year from now would be zero since there will be no additional dividends received in the future.
Q3. If Blue Sky Mining Corporation paid out a dividend one year from now, the total cash dividend received by the shareholder at that time would be the before-tax operating income multiplied by the payout policy. Hence:
$2.55 million * 75.0% = $1,912,500
Therefore, the total cash dividend received by the shareholder at that time would be approximately $1,912,500.
Q4. To calculate the shareholder's total after-tax dividend income at that time, we need to consider the tax implications. The retained earnings of $2.55 million would be invested in a 6.5% one-year Midnight Oil Treasury Bond, and the interest income would be subject to corporate tax. The remaining amount after corporate tax would be distributed as dividends to the shareholder. Thus, the shareholder's total after-tax dividend income at that time can be calculated as follows:
$2.55 million * (1 - 28.8%) * (1 - 15.5%) = $1,454,314
Therefore, the shareholder's total after-tax dividend income at that time would be approximately $1,454,314.
Q5. The rational choice for the shareholder would be to prefer the payout policy where dividends are paid out immediately. This choice would result in an immediate after-tax dividend income of approximately $1,628,250 (Q1) and no additional tax liability or investment risk associated with the retained earnings. Waiting for one year to receive dividends (Q3) would involve the uncertainty of future interest rates and potential changes in tax regulations, which could impact the after-tax dividend income (Q4). Therefore, opting for the immediate payout policy would be more advantageous for the shareholder.
learn more about Blue Sky Mining Corporation here:
https://brainly.com/question/16043240
#SPJ11
Hector is one of four partners in Cross & Co., a firm of solicitors. Hector orders four new safes from Lock Ltd for the storage of confidential documents, one for the office of each partner in the firm. His three partners all think this an extravagance on Hector’s part and an unnecessary expense because each office already has lockable filing cabinets in situ. They seek to cancel the order but Lock Ltd refuses and demands payment. Which of the following best describes the legal position of Cross & Co. here?
Cross & Co. are bound by the contract because Hector has explicit authority to make such a contract as a partner of the firm.
Cross & Co. are bound by the contract which was made within the implied usual authority of Hector as a partner of the firm.
Cross & Co. are not bound by the contract which was made ultra vires to his powers as a partner of the firm.
Cross & Co. are not bound by the contract because the majority of the partners in the firm have not agreed to it.
The legal position of Cross & Co. is accurately described as being bound by the contract made within the implied usual authority of Hector as a partner of the firm.
The legal position of Cross & Co. can be described as follows:
Cross & Co. are bound by the contract which was made within the implied usual authority of Hector as a partner of the firm.
In this scenario, Hector, a partner of Cross & Co. (a firm of solicitors), orders four new safes from Lock Ltd for the storage of confidential documents. He intends to have one safe for each partner's office in the firm. However, his three partners disagree with this decision, considering it extravagant and unnecessary since lockable filing cabinets are already present in each office. Consequently, they attempt to cancel the order, but Lock Ltd refuses and insists on payment.
According to the legal principles surrounding partnerships, Cross & Co. is bound by the contract with Lock Ltd. This is because Hector, as a partner of the firm, possesses explicit authority to enter into such contracts. In the context of implied usual authority, any actions or decisions undertaken by a partner within the normal course of business are deemed to be carried out within their usual authority. As a result, Cross & Co. is held responsible for the contract entered into by Hector as it falls within his implied usual authority.
Therefore, the legal position of Cross & Co. is accurately described as being bound by the contract made within the implied usual authority of Hector as a partner of the firm.
Learn more about authority
https://brainly.com/question/31018838
#SPJ11
Quantitative Problem: 5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and a 9% coupon, semiannual payment ( $45 payment every 6 months). The bonds currently sell for $844.87. If the firm's marginal tax rate is 25%, what is the firm's after-tax cost of debt? Do not round intermediate calculations. Round your answer to two decimal places. (3) %
Quantitative problem:Calculate the firm's after-tax cost of debt5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and a 9% coupon, semiannual payment ($45 payment every 6 months). The bonds currently sell for $844.87.
Do not round intermediate calculations. Round your answer to two decimal places. (3) %.Answer:First, let's find the bond yieldYTM = 5.71%After-tax cost of debt = YTM × (1 - tax rate)After-tax cost of debt = 0.0571 × (1 - 0.25)After-tax cost of debt = 0.0571 × 0.75After-tax cost of debt = 0.0428 = 4.28 %Therefore, the after-tax cost of debt is 4.28 %.How to find YTM? The bond's current price is given as $844.87, but its face value is $1000. Semiannual coupon payments are $45, which means that annual coupon payments are $90. Semiannual payments are done for a 25-year period, so there are a total of 50 payments to be made.
To know more about bonds visit:
https://brainly.com/question/17405470
#SPJ11
The demand of a commodity is: P = 23 – 2Q2.
a) Calculate the price which should be charged to maximize total
revenue from this product. round answer to 3 decimal
places)
b) Calculate the marginal re
The price should be charged to maximize total revenue from this product is 15.333. (rounded to 3 decimal places).
(a) To maximize total revenue from the product, we use the following formula:
Total Revenue = Price × Quantity
We know that, P = 23 – 2Q².
To get the total revenue function, we need to substitute P by 23 – 2Q².
So, Total Revenue (TR) = (23 – 2Q²)Q TR = 23Q – 2Q³
To maximize the total revenue, we find the derivative of total revenue function and equate it to zero and then solve for Q:TR' = 23 - 6Q²= 0 ⇒ 6Q² = 23 ⇒ Q² = 23/6 ⇒ Q = ± √(23/6).
We ignore the negative value as it is not feasible. Therefore, Q = √(23/6)Putting this value of Q in the demand function,
we get: P = 23 – 2Q²= 23 – 2(23/6) = 23 - 46/6= 23 - 7.6667≈ 15.333 ≈ 15.333 (rounded to 3 decimal places)Hence, the price should be charged to maximize total revenue from this product is 15.333. (rounded to 3 decimal places).
(b) Marginal revenue (MR) can be defined as the additional revenue generated by selling one more unit of the commodity.
To calculate the marginal revenue,
we differentiate the total revenue function with respect to quantity, that is: MR = d(TR) / d(Q) TR = 23Q - 2Q³d(TR)/d(Q) = 23 - 6Q²
We substitute the value of Q obtained in part (a) in the marginal revenue function to get: MR = 23 - 6Q²= 23 - 6(23/6)²= 23 - 6(23²/36)= 23 - 6(529/36)= 23 - 88.1667≈ -65.1667 ≈ -65.167(rounded to 3 decimal places).Hence, the marginal revenue is -65.167. (rounded to 3 decimal places).
To know more about revenue visit:
https://brainly.com/question/28558536
#SPJ11
The company is a martial arts school based on Vancouver Island which operates under a partnership model, owned by two people, each with over 25 years of martial arts and business experience. The school operates in partnership with community centers (which provide facilities, marketing, and manage the registration process). The school does not have its own facility (and as a result the only real overhead is website hosting fees). The organization’s revenue (received from clients, and a portion ranging from 60-70% is paid to the school by the community centers) is based entirely on class registration numbers. The classes are usually 20-40 students each and are run out of the community center gym facilities. The organization’s revenue is approximately 150k per year and pays for the two partner’s salaries. Students register for the classes on a term by term basis and are charged approximately $10 per class.
The school has created a strong sense of community as all locations come together at belt testing time and the business model has worked well to minimize the number of teaching hours required to generate revenue as the classes have at least 20 participants per teaching hour and there are 13-15 teaching hours (classes) per week. Efforts to transition class instruction to other black belts has resulted in dropped registration. Much of the strength and success of the school relies on tge strenghth of two partners
During COVID-19 the school transitions to online classes exclusively. Registration dropped to about 50 students throughout the pandemic, and one of the partners decided to exit the business. The one remaining partner is looking to understand their options with how they should successfully move the school forward coming out of the pandemic.
Your Role
Your mission as an advisory team (or individual) is to come up with industry analysis, creative operations plan and evaluate solutions to address this challenge for the partners as they rely on this for their livelihood.
Industry analysisMartial arts schools have become increasingly popular over the years. It is a highly competitive industry that is constantly evolving with new practices, techniques and styles being introduced.
The global martial arts market was valued at around $3.3 billion in 2019, and it is expected to grow at a CAGR of 4.9% from 2020 to 2027. Despite the growth, the COVID-19 pandemic has severely impacted the industry. Many martial arts schools were forced to close their physical locations and shift to virtual classes.
Creative operations planThe remaining partner should consider the following creative operations plan to keep the business going and expand its reach:
1. Develop an online presence: The school should focus on creating an online presence by developing a website, social media profiles, and advertising online. This will help attract new students to the school.
2. Offer flexible payment options: Since the classes are term by term, the school can offer flexible payment options such as monthly payment plans or packages to attract more students.
3. Offer free trial classes: Offering free trial classes can be a good way to attract new students and encourage them to sign up for classes.
4. Develop an app: Developing an app for the school can be a great way to engage students and provide them with an easy way to register for classes, view schedules, and access instructional content.
5. Host virtual events: The school can host virtual events such as tournaments, workshops, and seminars to keep students engaged and build a sense of community.
6. Partner with other schools: Partnering with other martial arts schools can be a great way to expand the school's reach and offer students a wider range of classes.Evaluate solutionsThe following are the solutions that the remaining partner can evaluate to address the challenge of moving the school forward.
To know more about increasingly visit:
https://brainly.com/question/28461253
#SPJ11
Date
Account name
Debit
Credit
Aug 1
Accounts Receivable
9 800
Service Revenue
9 800
10
Office Equipment
4 500
Cash
1 000
Bank Loan
3 500
12
Cash
1 500
Services Revenue
1 500
25
Cash
6 000
Accounts Receivable
6 000
Required
Post the transactions to T accounts and determine the balance of each account.
Prepare a trial balance as at 31 August.
Which types of errors cannot be detected in a trial balance that is in balance?
Types of errors Errors of omission, Errors of commission, Errors of principle, Compensating errors
While a trial balance helps in detecting many errors, it does not guarantee the absence of errors.
Types of errors that cannot be detected in a trial balance that is in balance include:
Errors of omission: If a transaction is completely omitted from the accounting records.
Errors of commission: These errors occur when a transaction is recorded, but with incorrect amounts or in the wrong accounts.
Errors of principle: These errors involve recording transactions against accounting principles. For example, recording revenue as an expense or vice versa.
Compensating errors: These errors occur when two or more errors cancel each other out, resulting in an accurate trial balance despite the individual errors.
User Accounting equation
Captivating Inc. is a motivational consulting business. At the end of its accounting period, May 31, 2012, Captivating Inc. has assets of $583,930 and liabilities of $184,520. Using the accounting equation.
To learn more about guarantee
https://brainly.com/question/28271944
#SPJ11
As we head into the FALL of 2022, and we hear about new variants, new cases, and now just recently new guidance from the CDC about quaratines etc.. we are coming out of a various orders that have closed businesses and added additional restrictions on businesses in order to open. These restrictions were based on health and safety concerns related to the Coronavirus. My question to you is:
Are these orders legal?
What would you do as a business owner?
We now see case numbers on the rise again, and new diseases reported, what do you think should happen if there is another virus or pathogen outbreak? If you were a business and the business supported your family - what would you do?
As we head into the FALL of 2022, and we hear about new variants, new cases, and now just recently new guidance from the CDC about quarantines, etc., we are coming out of various orders that have closed businesses and added additional restrictions to businesses to open. These restrictions were based on health and safety concerns related to the Coronavirus. Yes, these orders are legal because they were enacted by the relevant legal bodies and constituted reasonable measures of ensuring public safety during the COVID-19 pandemic.
If I were a business owner, I would ensure that my business adheres to the guidelines issued by the relevant authorities. The compliance should not only be for the benefit of the customers, but also to ensure that the business remains operational. As a business owner, I would also educate my employees about the importance of following the guidelines to minimize the spread of any virus or pathogen outbreak. If there were another virus or pathogen outbreak, I would ensure that the guidelines are followed, and the business operations would be adjusted according to the guidelines to reduce the spread of the outbreak. If the business supports my family, I would follow the guidelines and adjust the business operations to remain operational and ensure that my family is protected.
To know more about number visit:
https://brainly.com/question/24908711
#SPJ11
Pappy's Potato has come up with a new product, the Potato Pet (they are freeze-drled to last longer). Pappy's pald $185.000 for a marketing survey to determine the viability of the product It is felt that Potato Pet will generate sales of $900,000 per year. The fixed costs associated with this will be $230.000 per year, and variable costs will amount to 18 percent of sales. The equipment necessary for production of the Potato Pet will cost $980,000 and will be depreciated in a straight-line manner for the four years of the product Iffe (as with alf fads, it is felt the sales will end quickly). This is the only initial cost for the production. Pappy's has a tax rate of 23 percent and a required return of 13 percent.
a. Caiculate the payback period for this project. Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.9. 32.16. b. Calculate the NPV for this project. Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16. c. Calculate the IRR for this project. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.
Payback period: Payback period is a measure of the time it takes an investment to recover its cost. It is the length of time required to recover the cost of an investment.
Payback period can be calculated as follows: Payback period = Investment required / Annual net cash inflow where Annual net cash inflow = Cash inflow - Cash outflow Thus, the calculation of payback period is as follows:
[tex]Payback period = $1,165,000 / $900,000[/tex]
Payback period = 1.29 years b. NPV calculation: Net Present Value (NPV) measures the present value of future cash flows compared to the initial investment. A positive NPV implies that the investment generates more cash than the return required by the investor.
The formula to calculate the NPV is: NPV = Present value of cash inflows - Initial investment where, Present value of cash inflows = Cash inflow / (1 + Discount rate)^n
[tex]Annual cash inflow for the Potato Pet = 900,000 - (0.18 x 900,000) = $738,000[/tex]
Present value of cash inflows = 738,000 / (1 + 0.13)^2 = $576,634.91
[tex]For n = 3,Present value of cash inflows = 738,000 / (1 + 0.13)^3 = $508,525.[/tex]
[tex]59For n = 4,Present value of cash inflows = 738,000 / (1 + 0.13)^4 = $446,
945.64NPV = $651,769.91 + $576,634.91 + $508,525.59 + $446,945.64 - $1,[/tex]
[tex]165,000NPV = $18,875.05c. IRR[/tex]
IRR is a measure of the profitability of an investment. It is the discount rate at which the NPV of the project becomes zero. A higher IRR implies that the investment is more profitable.
To know more about measure visit:
https://brainly.com/question/28913275
#SPJ11
Zach took $400,000 out of the bank and used it to start his new cookie business. The bank account pays 3 percent interest per year. During the first year of his business, Zach sold 6,000 boxes of cookies for $2.50 per box. Also, during the first year, the cookie business incurred costs that required outlays of money amounting to $9,000.
Zach's accounting profit for the year was
_________________________________________________________________________________
a. $-494,000.
b. $-6,000.
c. $6,000.
d. $12,000.
c. $6,000.
Zach took $400,000 out of the bank to start his new cookie business. The bank account pays 3 percent interest per year. During the first year of his business, Zach sold 6,000 boxes of cookies for $2.50 per box. He also incurred costs amounting to $9,000.
To calculate the interest earned on Zach's bank account during the first year, we can use the formula: Interest = Principal x Rate x Time.
The principal, in this case, is $400,000, the rate is 3 percent (or 0.03), and the time is 1 year. Plugging these values into the formula, we get: Interest = $400,000 x 0.03 x 1 = $12,000.
So, the interest earned on Zach's bank account during the first year is $12,000.
Now let's calculate the revenue generated from selling the boxes of cookies. Zach sold 6,000 boxes at $2.50 per box. To find the total revenue, we multiply the number of boxes sold by the price per box: Revenue = 6,000 x $2.50 = $15,000.
Finally, we can calculate Zach's net income by subtracting the costs from the revenue: Net Income = Revenue - Costs = $15,000 - $9,000 = $6,000.
Therefore, Zach's net income during the first year of his cookie business is $6,000.
In summary:
- The interest earned on Zach's bank account is $12,000.
- The revenue generated from selling the boxes of cookies is $15,000.
- The net income (revenue minus costs) is $6,000.
Know more about 3 percent interest here:
https://brainly.com/question/28149553
#SPJ11
What is the present value of a Annuity where the investor receives $10,000 every year for 10 years and the rate of interest offered is 4.5%
The present value of the annuity is $110,185.06. An annuity is a series of equal cash flows that occur at equal intervals, such as the beginning or end of each year.
The present value of an annuity refers to the sum of the discounted cash flows over the duration of the investment. The formula for calculating the present value of an annuity is given as:
PV = A * [1 - (1 + r)^-n] / r
Where; PV = Present value of an annuity
A = The amount of each annuity payment
r = The interest rate per period
n = The total number of periods
In the question provided, the investor receives $10,000 every year for ten years. Thus, the amount of each annuity payment (A) is $10,000, and the number of annuity payments (n) is 10. The interest rate per period (r) is 4.5%.
Now, we can calculate the present value of the annuity using the formula above:
PVA = $10,000 * [1 - (1 + 0.045)^-10] / 0.045
PVA = $10,000 * [1 - 0.5983] / 0.045
PVA = $10,000 * 11.0185
PVA = $110,185.06
To know more about the cash flows, visit:
https://brainly.com/question/28503523
#SPJ11
Directions: Look at the following lines and determine how you might revise them so that they remove the pronoun "I".
I can understand what it’s like to have a stack of papers to grade and only two days to do it.
I now know that cigarettes can cause various types of cancer.
I would like you to understand that not all students are lazy.
Doughnuts are really harmful to our health, so I should stop ingesting them.
If I would only give reading a try, I might actually enjoy it.
As a feminist, I believe that women should receive pay that is equal to that of their male coworkers.
In order to revise the given sentences to remove the pronoun "I", there are a few changes that need to be made. The revised sentences without the use of the pronoun "I" are mentioned below:
Understanding what it’s like to have a stack of papers to grade and only two days to do it can be achieved.
The knowledge that cigarettes can cause various types of cancer is now known.
It is important to understand that not all students are lazy.
Ingesting doughnuts is really harmful to our health, so they should be avoided.
Giving reading a try might lead to an actual enjoyment of it.
Believing in equal pay for women, as a feminist, should be a principle embraced.
Learn more about cancer from the given link:
https://brainly.com/question/26059802
#SPJ11
25. Amalgamated Products has the following operating divisions
and respective percentages of the company’s total assets:
Asset Percentage
Division (% of company’s total assets)
Chemicals 20
Polymers 30
Food Additives 50
To estimate the cost of capital for each operating division,
management has identified the following three competitors:
Estimated
Competitor Equity Beta Debt/(Debt + Equity)
Consolidated Chemicals 1.2 0.4
Mongo Macromolecules 1.6 0.2
Flavors & Fragrances 0.8 0.3
a) Assuming that the debt of all of these companies is risk-
free, estimate the asset beta for each of Amalgamated Products’
divisions. Assume that Amalgamated Products’ debt to (debt plus equity)
ratio equals 0.4. What is Amalgamated Products’ equity beta?
b) Assume that the risk-free interest rate is 3% per year and
the expected return on the Wilshire 5000 Index is 8% per year.
Estimate the cost of capital for each of Amalgamated Products’
divisions, and for Amalgamated Products as a whole.
In answering part b, is it preferable to use the asset beta
or the equity beta? Why?
c) Repeat the previous calculations assuming that every company’s
debt has a beta of 0.2. How much does each division’s and
Amalgamated Products’ cost of capital change relative to
assuming that their debt is risk-free?
a) Calculations to estimate the asset beta for each of Amalgamated Products’ divisions and Amalgamated Products’ equity beta is given below;
Asset Beta=Equity Beta [1+(1-Tax Rate) (Debt/Equity Ratio)]
Where T is the tax rate, T=40%
Chemicals:
Asset Beta=1.2 [1+(1-0.4) (0.4)] = 1.344
Polymers:
Asset Beta=1.6 [1+(1-0.4) (0.2)]
= 1.12
Food Additives:
Asset Beta=0.8 [1+(1-0.4) (0.3)]
= 1.144
Amalgamated Products’ Equity Beta:
Asset Weighted Beta = (20/100)*1.344 + (30/100)*1.12 + (50/100)*1.144 = 1.1668
b) In part b, it is preferable to use the asset beta as opposed to the equity beta. This is because the question has asked for the cost of capital for each of Amalgamated Products’ divisions and Amalgamated Products as a whole, hence the asset beta, which is reflective of the risk of the operating assets of the company, is more appropriate to use for each division.
c) With every company's debt having a beta of 0.2, the cost of capital calculations for Amalgamated Products' divisions and Amalgamated Products as a whole changes as follows:
Chemicals:
Asset Beta=1.2 [1+(1-0.4) (0.4*0.2)]
= 1.272
Polymers:
Asset Beta=1.6 [1+(1-0.4) (0.2*0.2)]
= 1.184
Food Additives:
Asset Beta=0.8 [1+(1-0.4) (0.3*0.2)] = 0.896
Amalgamated Products’ Equity Beta:
Asset Weighted Beta = (20/100)*1.272 + (30/100)*1.184 + (50/100)*0.896 = 1.0556
Note that as a result of the lower debt beta, the asset betas for each division and the asset-weighted beta for Amalgamated Products as a whole decreases.
To know more about Calculations visit :
https://brainly.com/question/30781060
#SPJ11
Ch10-1: A 10-year bond, with a par value equaling $1,000, pays 7% annually. If similar bonds are currently yielding 6% annually, what is the market value of the bond? Use semi-annual analysis. Show all work (display all the variables used in your formulas, and/or detail all steps used in determining the calculation) I Ch10-2: A firm recently issued bonds which currently have the following features: a 5% coupon rate, 10 years until maturity, and a current price of $1,170.50. Determine the Yield to Maturity; assume annual payments. Hint: This was actually demonstrated in the Chapter 11 video. Show all work (display all the variables used in your formulas, and/or detail all steps used in determining the calculation)!
To find out the market value of the bond, use the following formula: PV of Bond = C x [1 - 1 / (1 + r)^n] / r + FV / (1 + r)^nWhere:
PV = Present Value
C = Annual Coupon Payments
r = Yield to Maturity / Required Return
FV = Par Value or Face Value of the Bond
n = Number of Years
Let's substitute the given information into the formula to solve for PV of Bond:
C = 7% x $1,000
= $70
r = 6% / 2 = 3% (semi-annual)
FV = $1,000n = 10 x 2 = 20
PV of Bond = $70 x [1 - 1 / (1 + 0.03)^20] / 0.03 + $1,000 / (1 + 0.03)^20= $70 x [1 - 1 / (1.03)^20] / 0.03 + $1,000 / (1.03)^20= $70 x [1 - 0.4339] / 0.03 + $1,000 / 1.8061= $1,880.76
Therefore, the market value of the bond is $1,880.76.
To find the yield to maturity (YTM), use the following formula:
PV of Bond = C x [1 - 1 / (1 + r)^n] / r + FV / (1 + r)^nWhere:
PV = Present Value
C = Annual Coupon Payments
r = Yield to Maturity / Required Return
FV = Par Value or Face Value of the Bondn = Number of Years
Let's substitute the given information into the formula to solve for r:PV of Bond = $1,170.50C = 5% x $1,000 = $50FV = $1,000n = 10r = ?
PV of Bond = $50 x [1 - 1 / (1 + r)^10] / r + $1,000 / (1 + r)^10
Let's use trial and error method to find out r:
If r = 5%, PV of Bond = $1,169.23
If r = 6%, PV of Bond = $1,102.10
If r = 7%, PV of Bond = $1,039.89
If r = 8%, PV of Bond = $982.56
If r = 9%, PV of Bond = $929.23
If r = 10%, PV of Bond = $879.16
If r = 11%, PV of Bond = $832.63
If r = 12%, PV of Bond = $789.05
If r = 13%, PV of Bond = $747.89
If r = 14%, PV of Bond = $708.70
If r = 15%, PV of Bond = $671.08
Therefore, the Yield to Maturity (YTM) of the bond is approximately 6.18% (rounded to two decimal places).
To know more about Maturity visit :
https://brainly.com/question/28265519
#SPJ11
BTL Company manufactures speaker systems. The company estimated there will be 49,500 units in inventory at the beginning of December 2019. BTL Company wants to have half of that amount in its inventory at the end of December. Based on the forecasted sales, 138, 100 speaker systems will be sold in the month of December Do not enter dollar signs or commas in the input boxes Use the negative sign for negative values or values that must be subtracted, a) Determine the number of speakers to be produced in December n Budgeted Production Units - b) Prepare a production budget. BTL Company Production Budget Month Ending December 31, 2019 Budgeted Sales Budgeted Ending Inventory Budgeted Beginning Inventory Budgeted Production Units
113,350 speaker systems would be the budgeted production units for BTL Company in December 2019. We must compute the budgeted production units by taking into account the projected sales as well as the intended ending and beginning inventory levels in order to establish the number of speakers to be manufactured in December.
given information: - 49,500 units are predicted to be in the initial inventory. Desired ending inventory: 24,750 units, which is equal to 50% of the anticipated beginning inventory (49,500/2) Units sold within budget: 138,100 We can use the following calculation to determine the budgeted production units: Budgeted Production Units are calculated as follows: Budgeted Sales + Desired Ending Inventory - Beginning Inventory Putting the values in the formula as substitutes: 138,100 + 24,750 - 49,500 are the budgeted production units. 113,350 are the budgeted production units The BTL Company's production budget for the month of December 2019 would consist of the the following details: Sales as planned: 138,100 units Ending Inventory Budgeted: 24,750 units Starting inventory budgeted at 49,500 units Units of Production Budgeted: 113,350
learn more about account here:
https://brainly.com/question/30977839
#SPJ11
Consider a line process with 3 processing stages. The production requires each unit to go through Stage A through Stage C in sequence. The characteristics of the Stages are given below:
Stage A Stage B Stage C
Processing Time 1 minute Processing Time 2 minutes. Processing time 3 minutes
Number of Machines 1 Number of Machines 1 Number of Machines 2
Machine Availability 90% Machine Availability 100%. Machine Availability 100%
Process Yield at Stage 100%. Process Yield at Stage 100%. Process Yield at Stage 100%
Determine the system capacity. Which stage is the bottleneck? What is the utilization of Stage 3.
To determine the system capacity and identify the bottleneck stage, we need to consider the processing time, the number of machines, and the machine availability at each stage. The system capacity is determined by the slowest stage in the process.
Stage A:
Processing Time: 1 minute
Number of Machines: 1
Machine Availability: 90%
Process Yield: 100%
Processing Rate A = (Number of Machines) * (Machine Availability) * (Process Yield) / (Processing Time)
= (1) * (0.90) * (1.00) / (1)
= 0.90 units per minute
Stage B:
Processing Time: 2 minutes
Number of Machines: 1
Machine Availability: 100%
Process Yield: 100%
The processing rate for Stage B can be calculated as follows:
Processing Rate B = (Number of Machines) * (Machine Availability) * (Process Yield) / (Processing Time)
= (1) * (1.00) * (1.00) / (2)
= 0.50 units per minute
Stage C:
Processing Time: 3 minutes
Number of Machines: 2
Machine Availability: 100%
Process Yield: 100%
Processing Rate C = (Number of Machines) * (Machine Availability) * (Process Yield) / (Processing Time)
= (2) * (1.00) * (1.00) / (3)
≈ 0.67 units per minute
Utilization of Stage 3 = (Processing Rate C / Processing Rate B) * 100
= (0.67 / 0.50) * 100
= 134%
Therefore, the system capacity is 0.50 units per minute, and the bottleneck stage is Stage B. The utilization of Stage 3 is 134%.
Learn more about system capacity here : brainly.com/question/4441455
#SPJ11
Answer:
Stage 3 is fully utilized with a utilization rate of 100%.
Explanation:
The system capacity in a line process is determined by the processing time of the bottleneck stage. In this case, Stage B has the longest processing time of 2 minutes, making it the bottleneck stage. The system capacity would be limited by Stage B's processing time.
To calculate the utilization of Stage 3, we need to consider the number of machines and their availability. Since Stage C has 2 machines and both have 100% availability, the total available processing time for Stage 3 is 3 minutes (2 machines x 3 minutes). As the processing time required for Stage C is also 3 minutes, the utilization of Stage 3 can be calculated as follows:
Utilization of Stage 3 = (Processing time at Stage 3 / Available processing time) x 100%
Utilization of Stage 3 = (3 minutes / 3 minutes) x 100%
Utilization of Stage 3 = 100%
Therefore, Stage 3 is fully utilized with a utilization rate of 100%.
Learn more about system capacity here: brainly.com/question/13647139 #SPJ11
Prepare the December 31 entry for Sheffield Corporation to record amortization of intangibles. The trademark has an estimated useful life of 4 years with a residual value of $4,440. (Credit account titles are qutomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.) On July 1, 2020, Sheffield Corporation purchased Young Company by paying $256,500 cash and issuing a $120,000 note payable to Steve Young. At July 1 , 2020, the balance sheet of Young Company was as follows.
The Sheffield Corporation on December 31, the following item needs to be made to reflect intangible amortisation:Date: 2020 December 31.
Amount of the Trademark Amortisation Cost Amount of Accumulated Amortisation for a TrademarkNote: Depending on the pertinent data included in the inquiry, the precise amounts for "Trademark Amortisation Expense" and "Accumulated Amortisation - Trademark" will vary. The entry, however, would show the expense for amortising the trademark and the resulting rise in the accumulated amortisation account.Please be aware that it is not possible to include the precise dollar numbers in the entry without the specified quantities. When entering the entry, be sure to substitute the correct quantities.
learn more about amortisation here :
https://brainly.com/question/30999326
#SPJ11
please show all work (not in excel)
Question 24 Consider a growing annuity that starts with a payment of $67,000 at the end of year 1 with a constant growth rate of 3%. The growing annuity lasts for a total of 45 years and has an appropriate discount rate of 8%.
What is the present value of this growing annuity?
The formula for the present value of a growing annuity is:PVGA = PMT1 / (r - g) × [1 - (1 + g / (1 + r))t-n]Where,PMT1 is the first payment of the growing annuity, g is the growth rate of the annuity, r is the discount rate of the annuity, t is the time period, and n is the number of periods.
PMT1 = $67,000g
= 3%
r = 8%
t = 1
n = 45We can calculate the present value of this growing annuity as follows:
PVGA = 67,000 / (8% - 3%) × [1 - (1 + 3% / (1 + 8%))45]
PVGA = 67,000 / 5% × [1 - (1 + 3%)45 / (1 + 8%)45]PVGA = $1,340,000 × [1 - 0.1236]
PVGA = 1,169,656.88
Therefore, the present value of this growing annuity is 1,169,656.88.
To know more about value visit:
https://brainly.com/question/30145972
#SPJ11