Answer:
a) %idle time = 0.33
b)40.2minutes
c)40.02customers
d)0.5219
Step-by-step explanation:
It was said in the question Students arrive at the Administrative Services Office at an average of one every 15 minutes which means that
λ = 60/15= 4customers/hr
It was stated that their requests take on average 10 minutes to be processed which means that
μ = average of 10minutes = 60/10 = 6customers/hr
Then let us use these information to solve the given questions
a) percentage when judy was idle = (1- λ/μ)= 1- 0.67= 0.33
%service time = 0.67
%idle time = 0.33
b)To calculate How much time, on average that a student spend waiting in line then we make use of the formula below
= λ/ μ( μ- λ)
= 0.67hrs = 0.67 x60 = 40.2minutes
c) To calculate How long the waiting line on average;
= average waiting time x arrival rate = 0.67hrs x 6customers/hr
= 40.02customers
d) the probability that an arriving student will find at least one other student waiting in line is calculated below;
P( idle time i.e no customer to attend to) = 0.33
P1( Probability of having a customer to attend to) = 0.33 x 0.67= 0.2211
P( Probability of having 2 customer to attend to) = 0.33 x 0.67x0.67 = 0.1481
Therefore, the probability of finding at least one customer = 1 -[ po + p1]
= 1 - 0.33- 0.1481 = 0.5219
On December 31, 2016, Ditka Inc. had Retained Earnings of $270,800 before its closing entries were prepared and posted. During 2016, the company had service revenue of $171,100 and interest revenue of $82,800. The company used supplies in the amount of $89,400, advertising expenses were $16,700, salaries and wages totaled $18,750, and income tax expense was calculated as $14,300. During the year, the company declared and paid dividends of $6,300.
Required:
a. Prepare the closing entries dated December 31, 2016.
b. Record the entry for closing revenue and expense account.
c. Record the entry for closing dividend account.
Answer:
Required a
Closing Retained Earnings Balance
Retained Earnings $270,800 (debit)
Statement of Changes in Shareholders Equity $270,800 (credit)
Required b
Closing Service Revenue Balance
Sales Revenue $171,100 (debit)
Statement of Profit and Loss $171,100 (credit)
Closing Interest Revenue Balance
Interest Revenue $82,800 (debit)
Statement of Profit and Loss $82,800 (credit)
Closing Supplies Expenses Account
Statement of Profit and Loss $89,400 (debit)
Supplies Expenses $89,400 (debit)
Closing Supplies advertising expenses
Statement of Profit and Loss $16,700 (debit)
Advertising expenses $16,700 (debit)
Closing Supplies salaries and wages expenses
Statement of Profit and Loss $18,750 (debit)
Salaries and wages expenses $18,750 (debit)
Closing income tax expenses
Statement of Profit and Loss $14,300 (debit)
income tax expenses $14,300 (debit)
Required c
Closing the dividend Account
Dividend $6,300 (debit)
Retained Earnings Statement $6,300 (credit)
Explanation:
Revenues and Expenses are Closed off to the Statement of Profit and Loss.
Dividends are Closed off to the Retained Income Statement.
Adjusting Supplies Account
Supplies Expenses $89,400 (debit)
Supplies Account $89,400 (credit)
Adjusting dividend Account
Dividend $6,300 (debit)
Cash $6,300 (credit)
During the summer months Terry makes and sells necklaces on the beach. Last summer he sold the necklaces for 10$ each and his sales averaged 20 per day. When he increased the price by , he found that the average decreased by two sales per day.(a) Find the demand function, assuming that it is linear.(b) If the material for each necklace costs Terry 6$ , what should the selling price be to maximize his profit?
Answer:
$13.00
Explanation:
Gather secondary data by reading what others have experienced and observed. You should begin nearly every research project by researching secondary sources to gather information that has already been written about your topic. What kind of data can books provide?
A. In-depth historical data
B. Up-to-date information
C. Electronic indexes
Answer:
A. In-depth historical data
Explanation:
When starting a new research project you should always gather in-depth historical data. This form of data will provide you with a wide array of information that other individuals have already gathered and documented regarding the specific topic that you are currently researching. Aside from providing you with valuable information it also provides you with a guide of what sub-topics previous researchers may have missed, which you can then research yourself.
When CNS decided to enter the global market for its Breathe Right strips, there were many contributing factors for doing so. However, according to Kevin McKenna, vice president for international at CNS, the real key to successfully enter a specific global market is
Answer:
Having a local partner that is entrepreneurial with an ability to distribute and sell
Explanation:
according to Kevin McKenna, vice president for international at CNS, the real key to successfully enter a specific global market is Having a local partner that is entrepreneurial with an ability to distribute and sell.
A seller lists property with a multimillion-dollar broker. The broker's agreement calls for him to enter the listing into the MLS within three working days. On the second day, the broker shows the property to a prospective buyer, who loves it. The buyer is leaving town the next day but will be back in one week to purchase it if it is still on the market. The broker wants to double his commission by selling his own listing, so he withholds the information from the MLS for 10 days. Based on this information, the broker ______________.
Answer: B) may be liable to the seller for violating duties required by the listing agreement.
Explanation:
The Multiple Listing Service (MLS) is a database that allows brokers to cooperate in finding buyers for homes. They list the properties for sale and if other brokers know people who need such a house they will reach out and buy it. The listing broker and the selling broker will then share commissions.
This is what the broker was trying to avoid by withholding the information from the MLS.
However, the broker is in violation of the listing agreement which stated that he should post it on the MLS within 3 working days and as such there is a very real chance that he is liable to the seller for this violation.
Bruno Corporation is involved in the business of injection molding of plastics. It is considering the purchase of a new computer-aided design and manufacturing machine for $430,300. The company believes that with this new machine, it will improve productivity and increase quality, resulting in an increase in net annual cash flows of $98,800 for the next 6 years. Management requires a 10% rate of return on all new investments
Required:
a. Calculate the internal rate of return on this new machine. Should the investment be accepted?
b. Calculate cash payback period, internal rate of return, and apply decision rules.
Answer:
10%
Yes
4.36 years
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR can be calculated using a financial calculator:
Cash flow in year 0 = $-430,300
Cash flow each year from year one to six = $98,800
IRR =10%
The project should be accepted because the IRR is equal to the required rate of return
Cash payback calculates how long it takes for the amount invested in a project to be recovered from the cumulative cash flow.
Cash payback = amount invested / cash flow =
$430,300 / $98,800 = 4.36 years
To find the IRR using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
I hope my answer helps you
The purpose of a buffer statement in a negative message is to ________. a. ensure that the company avoids legal liability. b. reduce the reader's shock or pain related to the bad news. c. inform the reader of the reasons for the bad news. d. explain company policy regarding the bad-news message.
Answer:
The correct answer is: b. reduce the reader's shock or pain related to the bad news.
Explanation:
Communication is a fundamental tool that promotes synergy for a company to achieve its objectives and goals. Through this process, it is possible to pass on essential information, integrate employees, strengthen the organization's reputation, promote a good relationship with the internal and external environment, etc.
However, many times companies also need to transmit some bad news, so it is important that there are resources and tools so that communication is carried out in a clear and effective manner without causing any type of situation that alarms the recipients of the message, therefore the buffer statement is used at the beginning of a letter or commercial communication to reduce the impact of bad news, helping to prepare the reader for what will be communicated, explaining the context of the message in a more neutral and not so alarming way.
A U.S.-based company, Global Products Inc., has wholly owned subsidiaries across the world. Global Products Inc. sells products linked to major holidays in each country.
The president and board members of Global Products Inc. believe that the managers of their wholly owned country-level subsidiaries are best motivated and rewarded with both annual salaries and annual bonuses. The bonuses are calculated as a predetermined percentage of pretax annual income.
Señora Larza, the president of Global Products of Mexico, has worked hard this year to make her Mexican subsidiary profitable. She is looking forward to receiving her annual bonus, which is calculated as a predetermined percentage (15 percent) of this year's pretax annual income earned by Global Products of Mexico. A condensed income statement for Global Products of Mexico for the most recent year is as follows (amounts in thousands of pesos).
Sales MXN 25,000
Expenses 23,000
Pretax Income MXN 2,000
The U.S. headquarters financial group translates each of its wholly owned subsidiary's results into U.S. dollars for evaluation. After translating the Mexican pesos income statement into U.S. dollars, the condensed income statement for Global Products of Mexico is as follows (amounts in thousands of dollars).
Sales US $7,000
Expenses 8,100
Pretax Income US $(1,100)
Required:
A1. Calculate the bonus amount based on (1) the Mexican peso-based Pretax Income and (2) the U.S. dollar-based Pretax Income.
A2. Translate the peso-based bonus to U.S. dollars using a current exchange rate.
B. Calculate the average exchange rate used to translate the Mexican pesos income statement into the U.S. dollar statement for the categories: (1) Sales and (2) Expenses.
A1. Bonus on mexican peso-based Pretax Income
Bonus U.S. dollar-based Pretax Income
A2. U.S. dollars
B. Average exchange rate for sales pesos
Average exchange rate for expenses pesos
Answer:
Global Products Inc.
Global Products of Mexico
Señora Larza
A1. Bonus on mexican peso-based Pretax Income
= MXN 2,000 x 15% = MXN 300
Bonus U.S. dollar-based Pretax Income
= -$1,100 x 15% = -$165, there is no U.S. dollar-based bonus
A2. U.S. dollars
Current Exchange rate = US$1 = MXN 20.0369 (July 18, 2020)
MXN 2,000 = MXN 2,000/MXN 20.0369 = $98.19
B. Average exchange rate for sales pesos
Sales MXN 25,000 = US $7,000,
The exchange rate = US $1 = MXN 3.5714 (MXN 25,000/ US $7,000)
Average exchange rate for expenses pesos
Expenses MXN 23,000 = US $ 8,100
The exchange rate = US $1 = MXN 2.8395 (MXN 23,000/US $ 8,100)
Explanation:
Señora Larza, the president of Global Products of Mexico seems to have a bonus in Mexican peso, but when the bonus pre-tax income is translated into US dollars, the bonus turns negative just like the pre-tax income was negative. This implies that since the U.S. headquarters translates each subsidiary's results into U.S. dollars for evaluation, Señora Larza did not qualify for bonus payment for the current year.
The disparity is caused by the different exchange rates for translating the sales revenue and the expenses. Exchange rates are the rates at which currencies exchange their values for international account settlements.
Blue Sky Drone Company has a total asset turnover ratio of 3.50x, net annual sales of $25 million, and operating expenses of $11 million (including depreciation and amortization). On its balance sheet and income statement, respectively, it reported total debt of $2.50 million on which it pays a 7% interest rate. To analyze a company’s financial leverage situation, you need to measure the firm’s debt management ratios. Based on the preceding information, what are the values for Blue Sky Drone’s debt management ratios?
Answer:
The values for Blue Sky Drone’s debt management ratio is 0.35
Explanation:
In order to calculate the values for Blue Sky Drone’s debt management ratios we would have to make the following calculation:
debt management ratio=Total Debt / Total Assets
According to the given we have that it reported total debt of $2.50 million.
To calculate the total assets we would have to use the following formula:
Total Asset Turnover Ratio = Net Sales / Total Assets
3.50=$25,000,000/Total Assets
Total Assets=$25,000,000/3.50
Total Assets=$7,142,857
Therefore, debt management ratio=$2,500,000/$7,142,857
debt management ratio=0.35
The values for Blue Sky Drone’s debt management ratio is 0.35
Mars Inc. produces 100,000 boxes of Snickers bars which sell for $4 a box. If variable costs are $3 per box, and it has $150,000 fixed operating costs, in the short run, it should
Answer:
It should continue the production in the short-run.
Explanation:
Given the unit produced by Mars Inc. = 100000 boxes.
The selling price of boxes = $4 per box.
The variable costs = $3 per box.
The fixed costs = $150000
The total sales revenue = number of boxes × selling price
= 100000 × 4
= $ 400000
In the short run, the firm should continue its production because it still covers the variable costs.
g If the U.S. real exchange rate appreciates, U.S. exports a. increase and U.S. imports decrease. b. decrease and U.S. imports increase. c. and U.S. imports both increase. d. and U.S. imports both decrease.
Answer:
The answer is B.
Explanation:
If dollar appreciates, imports become cheaper(decrease), meaning dollar will buy more of another foreign currency
because Americans will find foreign goods less expensive because they have to spend less for those goods and services in dollar.
In the same vein, exports rise(increase) or less profitable, causing the domestic demand to fall because foreigners will find American goods more expensive because they have to spend more for those goods and services in dollar
Suppose that ABC overstates its ending inventory for 2018. What effect will this have on the reported amount of cost of goods sold for 2018?
A. Cannot be determined given the information provided.
B. Have no effect on cost of goods sold.
C. Understate cost of goods sold.
D. Overstate cost of goods sold.
The adjusting entry required when amounts previously recorded as deferred revenues are earned by providing goods or services to customers includes:_______
A) A debit to an asset.
B) A debit to a liability.
C) A credit to a liability.
D) A credit to an asset.
Sales revenue $350,000
Accounts receivable $280,000
Ending inventory $230,000
Cost of goods sold $180,000
Sales returns $50,000
Sales discount $20,000
Given the information in the above table, what is the company's gross profit?
A) $100,000.
B) $50,000.
C) $170,000.
D) $280,000.
If your employer declares bankruptcy, this can have a major effect on your pension if you are in a
A) Either plan
B) Defined Benefit Plan
C) Neither Plan
D) Defined Contribution Plan
Answer:
Suppose that ABC overstates its ending inventory for 2018. What effect will this have on the reported amount of cost of goods sold for 2018?
C. Understate cost of goods sold.Cost of goods sold = beginning inventory + purchases during the period - ending inventory. If ending inventory is overstated, then COGS are understated.
The adjusting entry required when amounts previously recorded as deferred revenues are earned by providing goods or services to customers includes:_______
B) A debit to a liability.Deferred revenues are liabilities with credit balances, therefore, when they are actually earned, they must decrease with a debit.
Sales revenue $350,000
Accounts receivable $280,000
Ending inventory $230,000
Cost of goods sold $180,000
Sales returns $50,000
Sales discount $20,000
Given the information in the above table, what is the company's gross profit?
A) $100,000.Gross profit = net sales revenue - COGS
net sales revenue = total sales revenue - sales returns - sales discounts
If your employer declares bankruptcy, this can have a major effect on your pension if you are in a
C) Neither PlanAll types of pension plans are currently protected and only a small portion of very high income plans are affected in case of bankruptcy (generally plans that hold over $1 million or those plans with contributions higher than $54,000 per year).
On December 2, Coley Corp. reacquired 1,000 shares of its $2 par value common stock for $27 each. On December 20, Coley Corp. reissued 400 shares for $15 each. Which of the following is correct regarding the journal entry for the reissued shares?
a. Debit Cash $15,000.
b. Credit Treasury Stock $10,800.
c. Credit Paid in Capital - Treasury Stock $5,200.
d. Credit Treasury Stock $6,000.
Answer:
b. Credit Treasury Stock $10,800.
Explanation:
The Journal entry is shown below:-
Cash Dr, $6,000 (400 × $15)
Retained Earnings Dr, $4,800
To Treasury Stock $10,800 (400 × 27)
(Being reissued shares is recorded)
Here we debited the cash and retained earnings as it increased the cash and reduced the retained earning balance and we credited the treasury stock as it reduced the balance of treasury stock
Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing system with three activity cost pools. The activity rate for the Size-Related activity cost pool is $1.22 per guest. (The greater the number of guests, the larger the cake.) The activity rate for the Complexity-Related cost pool is $36.21 per tier. (Cakes with more tiers are more complex.) Finally, the activity rate for the Order-Related activity cost pool is $83.33 per order. (Each wedding involves one order for a cake.) The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening. The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells, which are accounted for separately. Data concerning two recent orders appear below: Ericson Wedding Haupt Wedding Number of reception guests 72 191 Number of tiers on the cake 6 4 Cost of purchased decorations for cake $ 21.45 $ 77.65 Assuming that all of the costs listed above are avoidable costs in the event that an order is turned down, what amount would the company have to charge for the Ericson wedding cake to just break even
Answer:
$409.88
Explanation:
The computation of the amount that the company have to charge for break even is shown below:
Particulars Ericson Wedding Rate Amount
Guest 72 $1.22 $87.84
Tiers 6 $36.21 $217.26
Orders 1 $83.33 $83.33
Decoration 1 $21.45 $21.45
Total $409.88
We simply applied the number of units with the rate so that the final amount could come
Ryan works at a community college and the college requires all employees to contribute to a pension fund. At this time, he is not too worried about the safety of this contribution because
Answer:
pension funds usually make conservative investments
Explanation:
Pension funds are pools of investment that are used to prepare an employee for retirement. Pension contributions are made either by the employer or the employee.
These funds are collected and invested by Pension Fund Administrators (PFA).
Primarily pension funds are invested in stocks and bonds.
The aim of the investments is to make low risk profit on the funds. So Ryan is not worried about the safety of his pension contributions because they are put in conservative investments that have low risk of loss.
When there are lower prices, but waiting lines customers will often be drawn to the competing location of a Monopolistic Competitor with greater customer service and better atmosphere.
A. True
B. False
Semans is a manufacturer that produces bracket assemblies. Demand for bracket assemblies (X) is 127 units. The following is the BOM in indented form:
ITEM DESCRIPTION USAGE
X Bracket assembly 1
A Wall board 5
B Hanger subassembly 2
D Hanger casting 3
E Ceramic knob 2
C Rivet head screw 3
F Metal tong 4
G Plastic cap 1
Below is a table indicating current inventory levels:
Item X A B C D E F G
Inventory 27 19 74 23 201 262 975 100
b. What are the net requirements for each item? (Leave no cells blank - be certain to enter "0" wherever required.)
Item Net Requirements
X
A
B
C
D
E
F
G
Answer and Explanation:
The computation of net requirements for each item is shown below:-
Net requirement = Gross requirement - Inventory
To compute the Gross requirement we will use the following formulas:
A = 5 × Net requirement of X
= 5 × 127
= 635
B = 2 × Net requirement of X
= 2 × 127
= 254
C = 3 × Net requirement of X
= 3 × 127
= 381
D = 3 × Net requirement of B
= 3 × 180
= 540
E = 2 × Net requirement of B
= 2 × 180
= 360
F = 4 × Net requirement of C
= 4 × 358
= 1,432
G = 1 × Net requirement of C
= 1 × 358
= 358
Item Gross Requirement Inventory Net Requirement
X 127 1 127
A 635 19 616
B 254 74 180
C 381 23 358
D 540 201 339
E 360 262 98
F 1,432 975 457
G 358 100 258
Therefore we have applied the net requirement formula.
Hi Abigail,
As you may know, Macy’s is in a battle with Abercrombie & Fitch for sales among 15- to 20-year-old female customers. We are relocating our Junior department to the basement of our store to give young people a separate entrance and place to call their own. We want to beat Abercrombie & Fitch, and we’ll all need to work together to make that happen.
Thanks for your hard work. Together we can do this!
Best regards,
William
1. Do you think some kind of reward would be appropriate to motivate Abigail? If so, what should it be?
a. A choice of work assignments
b. Two days off with pay
c. A $200 bonus
2. What sentences should I use to increase Abigail’s expectancy P&O expectancy?
a. You asked for new promotional posters last week—I’ve gotten those for you.
b. Any employee who increases sales by 10% this month will receive a reward.
c. Your attitude is critical in this effort—I know you can do it.
3. Which of the following sentences should I use to increase Abigail’s E&P expectancy?
a. Any employee who increases sales by 10% this month will receive a reward.
b. You can choose your own reward if you hit your goals.
c. You asked for new promotional posters last week—I’ve gotten those for you.
Answer:
c b a
Explanation:
1. c
You need to make the person feel good about their hard work.
2. b
They make the right point.
3. a
It pretty much makes the most sense as you don't want the employ to have too much power.
For employee encouragement Macy’s shall do the following:
1. Reward to Abigail:
a) A choice of work assignments
2. Performance & outcome expectancy:
c) Your attitude is critical in this effort, I know you can do it.
3. Effort & Performance Expectancy:
a) Any employee who increases sales by 10% this month will receive a reward.
What do you mean by Performance and Outcome (P&O) Expectancy?
Performance Expectancy:
The degree to which a person expects that employing a system will enable him or her to improve their performance at work is known as performance expectancy (PE).
Outcome Expectancy:
Expected results of a conduct, whether favorable or bad, are referred to as outcome expectations.
Expectancy theory consists of three parts:
Effort Performance ⇒ Result ⇒ RewardoutcomeTherefore Macy should focus on employee motivation by combining effort, performance & outcome element under agency theory.
To know more about Performance & Outcome (P&O) Expectancy refer:
https://brainly.com/question/14914100
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You plan to invest $300 today and $500 three years from today. Two years from today, you plan to withdraw $50. Which of these is a correct statement regarding a time line for computing the future value of your cash flows four years from today?
A. The cash flow at year 4 is a negative $500.B. The cash flow at year 3 is a negative $500.C. The cash flow at year 2 is a negative $50.D. The cash flow at time 0 is a positive $300.
Answer: B. The cash flow at year 3 is a negative $500.
Explanation:
When money is invested into a venture, it is denoted with a negative sign (-) to indicate that this is money leaving the investor as opposed to a positive sign (+) to show when money is coming back to the investor.
In year 3, the investor invested $500 so in year 3 the Cashflow was -$500.
Structuring a Special-Order Problem Harrison Ford Company has been approached by a new customer with an offer to purchase 10,000 units of its model IJ5 at a price of $5 each. The new customer is geographically separated from the company's other customers, and existing sales would not be affected. Harrison normally produces 75,000 units of IJ5 per year but only plans to produce and sell 60,000 in the coming year. The normal sales price is $12 per unit. Unit cost information for the normal level of activity is as follows: Direct materials $1.75 Direct labor 2.50 Variable overhead 1.50 Fixed overhead 3.25 Total $9.00 Fixed overhead will not be affected by whether or not the special order is accepted.
Direct Materials $1.75
Direct Labor 2.50
Variable Overhead 1.50
Fixed Overhead 3.25
Total $9.00
Requried:
a. What are the relevant costs and benefits of the two alternatives (accept or reject the special order)?
b. By how much will operating income increase or decrease if the order is accepted?
Answer:
Effect on income= $7,500 increase
Explanation:
Giving the following information:
Special offer:
Units= 10,000
Price= $5
Production costs:
Direct Materials $1.75
Direct Labor 2.50
Variable Overhead 1.50
Because it is a special offer and there is unused capacity, we will not take into account the fixed costs.
Effect on income= number of units*unitary contribution margin
Effect on income= 10,000*(5 - 1.75 - 2.5 - 1.5)
Effect on income= $7,500 increase
If the ending inventory of a firm is overstated by $50,000, by how much and in what direction (overstated or understated) will the firm's operating income be misstated? (Hint: Use the cost of goods sold model, enter hypothetically "correct" data, and then reflect the effects of the ending inventory error and determine the effect on cost of goods sold.)
Answer:
50,000 overstated.
Explanation:
As the ending inventory is overstated by 50,000 we can conclude the implications using the inventory identity:
Beginning + Purchase = COGS + Ending
As the left side will be the correct display they will have no error.
Therefore the COGS will compensate the mistake in the ending ivnentory
0 = COGS + 50,000
COGS = -50,000
The COGS are 50,000 lower than it should be therefore the gross profit is overstated as
Sales - COGS = Gross Profit
0 - (-50,000) = Gross Profit
+ 50,000 = Gross Profit
This also makes the operating income which, derives from gross profit to be overstated as well.
Darwin is a 60-year-old software engineer for Compuswerve, Inc. Recently, the company went through a reorganization process meant to revamp the business and the work it does. The directors want to rework the company as a fresh, hip business with cutting-edge knowledge from young, creative-minded employees. Obviously, Darwin doesn’t fit into the directors’ vision, so the managers wish to replace him. Sure enough, a few weeks later Compuswerve hires some new employees, and Darwin is offered a severance plan and dismissed.
1. Which of the following, if true, would legally support the company’s decision to fire and replace Darwin? Check all that apply.
a. if the company had fewer than 20 employees
b. if Darwin needed a reasonable accommodation to perform his job due to a disability
c. if Darwin planned to retire in less than five years
d. if Darwin was unable to perform the essential functions of his job
e. if Darwin had another job offer elsewhere
f. if the company was a private (non-governmental) organization
g. if there were more highly skilled workers in the organization who could take his place
2. Which law prevents employees like Darwin from discrimination in employment?
a. ADEA
b. Title VII
c. Affirmative action
d. ADA
3. Are the company’s actions permissible, considering its mission and vision?
a. No, because Darwin was treated less favorably than younger employees based solely on his age.
b. Yes, because age is not a protected class in employment law.
c. No, because Darwin was not given compensation or allowed adequate time to find another job.
d. Yes, because the company is private and therefore has the right to hire or fire whomever they want to.
Answer:
Darwin and Compuserve, Inc.
1. d. if Darwin was unable to perform the essential functions of his job
e. if Darwin had another job offer elsewhere
2. b. Title VII
3. a. No, because Darwin was treated less favorably than younger employees based solely on his age.
Explanation:
Title VII of the Civil Rights Act of 1964 is a federal law that protects employees against discrimination based on certain specified characteristics: race, color, national origin, sex, and religion. Under Title VII, an employer may not discriminate with regard to any term, condition, or privilege of employment.
Federal employment laws prohibit discrimination of persons who are over 40 years.
Answer:
2. ADEA
Explanation:
Age
Discrimination
Employment
Act
of 1967, forbids discrimination to people/employees who are age 40 or older.
Phillips Rock and Mud is trying to determine the maximum amount of cash dividends it can pay this year. Assume its balance sheet is as follows:
Assets Cash $ 406,000
Accounts receivable 832,000
Fixed assets 1,014,000
Total assets $ 2,252,000
Liabilities and Stockholders' Equity
Accounts payable $ 473,000
Long term payable 368,000
Common stock (300,000 shares at $2 par) 600,000
Retained earnings 811,000
Total liabilities and stockholders' equity $ 2,252,000
a-1. From a legal perspective, what is the maximum amount of dividends per share the firm could pay? (Do not round intermediate calculations and round your answer to 2 decimal places.)
a-2. Is this realistic?
A. Yes
B. No
b. In terms of cash availability, what is the maximum amount of dividends per share the firm could pay? (Do not round intermediate calculations and round your answer to 2 decimal places.)
c. Assume the firm earned an 20 percent return on stockholders’ equity last year. If the board wishes to pay out 40 percent of earnings in the form of dividends, how much will dividends per share be? (Do not round intermediate calculations and round your answer to 2 decimal places.)
Answer:
a-1. From a legal perspective, what is the maximum amount of dividends per share the firm could pay?
Dividends can only be paid from retained earnings because a corporation can distribute dividends only if it has made a profit.
Maximum amount of dividends per share = $811,000 / 300,000 common shares = $2.7033 per share
a-2. Is this realistic?
B. No
No corporation has a 100% dividend payout rate because it uses retained earnings to finance existing or new projects.
b. In terms of cash availability, what is the maximum amount of dividends per share the firm could pay?
$1.35 per share because the firm has $406,000 in cash and it has 300,000 outstanding shares.
c. Assume the firm earned an 20 percent return on stockholders’ equity last year. If the board wishes to pay out 40 percent of earnings in the form of dividends, how much will dividends per share be?
ROE = net income / stockholders' equity
20% = net income / $1,411,000
net income = $1,411,000 x 20% = $282,200
dividends = $282,200 x 40% = $112,880
dividends per share = $112,880 / 300,000 = $0.38 per share
The Jewel Golf Club Company, which recently began using a kanban system, has had problems with high inventory levels of one of the handle grips used to make several versions of its clubs. Daily demand for the grip is 3000 units, average waiting time during production is 0.20 day, processing time is 0.10 day per container, and a container holds 150 grips.Use the information in Case 6.2. How many Kanban containers would Jewel require if a 10% policy variable is used? a. three or fewer b. four or five c. five or six d. six or seven
Answer:
d. six or seven
Explanation:
Given that:
Daily demand for the grip = 3000 units
average waiting time = 0.20 day
processing time = 0.10 day / container
a container holds = 150 grips
percentage of policy used = 10% = 0.10
The objective of this question is to determine the amount of Kanban containers would Jewel require.
the amount of Kanban containers = Demand ( wasting time + processing time)(1+percentage policy)/ amount of container holding
the amount of Kanban containers = 3000( 0.2 + 0.1) ( 1+ 0.10)/ 150
the amount of Kanban containers = 3000 ( 0.30) (1.10)/150
the amount of Kanban containers = 990/150
the amount of Kanban containers = 6.6
SO we can infer that the amount of Kanban containers would Jewel require if a 10% policy variable is used falls within the range of six or seven.
Risk and Return. Suppose that the risk premium on stocks and other securities did, in fact, rise with total risk (i.e., the variability of returns) rather than just market risk. Explain how investors could exploit the situation to create portfolios with high expected rates of return but low levels of risk. (LO12-2)
Answer:
The overview of the given scenario is described in the explanation segment below.
Explanation:
Diversification could never eradicate the systematic risk. It's indeed primarily even though all securities shift somewhat in unison (a significant part of their volatility is purposeful) also that diversified stock strategies remain volatile. Additionally, if I am a thing that separates by purchasing a proportion throughout the S & P indicator, I would also have indeed very variable returns because the global economy as a whole has been fluctuating widely.The unsystematic risk seems to be the volatility in share markets arising through factors unique to something like an individual's abilities. The risk involved with this kind of volatility is essentially the form whereby diversification could increasing.The entire premise of portfolio selection would be that, to both the degree that shares don't shift in unison all of the occasions, variations throughout the performance from every other given sector appear to have been wiped clean or softened out by additional differences in contributions from several other investments.The acid-test (quick) ratio Group of answer choices is used to quickly determine a company's solvency and long-term debt paying ability. relates cash, short-term investments, and net receivables to current liabilities. is calculated by taking one item from the income statement and one item from the balance sheet. is the same as the current ratio except it is rounded to the nearest whole percent.
Answer:
relates cash, short-term investments, and net receivables to current liabilities
Explanation:
The quick ratio is am example of a liquidity ratio. Liquidity ratios measure a company's ability to meet its short term obligations
Huprey Co. is the defendant in the following legal claims. For each of following claims, does Humphrey (a) record a liability, (b) disclose in notes, or (c) have no disclosure. 1. Humphrey can reasonably estimate that a pending lawsuit will result in damages of $1,280,000it is probable that Huprey will lose the case. Have no disclosure. Disclose in notes. Record a liability. 2. It is reasonably possible that Huprey will lose a pending lawsuit. The loss cannot be estimable. Record a liability. Disclose in notes. Have no disclosure. 3. Huprey is being sued for damages of $2,400,000. It is very unlikely (remote) that Huprey will lose the case. Disclose in notes. Record a liability. Have no disclosure.
Answer:
1. Record a liability.
2. Disclose in notes.
3. Disclose in notes.
Explanation:
The issue here relates to a Contingent Liability which is a provision that is recorded in the books as a liability if there is a likelihood that the firm will incur it in future. This is usually done for law suits.
The general rule is: Record a liability if the loss is probable and estimable.
If a loss is not probable, disclose it in the notes.
If a loss is not estimable, disclose it in the notes.
1. Loss is both estimable and it is probable that Humphrey will lose the case. It should be recorded as a liability.
2. It is probable that Humphrey will lose the case however, loss is not estimable. Disclose in the notes.
3. It is not probable that Humphrey will lose the case. Disclose in the notes.
Footsteps Co. has a bond outstanding with a coupon rate of 5.4 percent and annual payments. The bond currently sells for $1,007.49, matures in 18 years, and has a par value of $1,000. What is the YTM of the bond
Answer: 5.33%
Explanation:
Use a financial calculator to get this faster.
On the calculator input the following.
FV = 1,000 because when it matures in 18 years it will be worth this
PV = -1007.49 as that is the current value. Should be in negative.
PMT = 54 because the coupon payments are 5.4% from the par of $1,000 which is $54.
N = 18
Click compute / CPT and then click I/Y.
You should get a YTM of 5.33%.
Flaherty is considering an investment that, if paid for immediately, is expected to return $146,000 five years from now. If Flaherty demands a 15% return, how much is she willing to pay for this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round PV factor to 4 decimals.)
Answer:
PV= $72,587.80
Explanation:
Giving the following information:
Flaherty is considering an investment that, if paid for immediately, is expected to return $146,000 five years from now.
To calculate the present worth, we need to use the following formula:
PV= FV/(1+i)^n
FV= $146,000
Interest rate= 15% = 0.15
Number of periods= 5
PV= 146,000 / (1.015^5)
PV= $72,587.80
After deciding to acquire a new car, you can either lease the car or purchase it with a three-year loan. The car you want costs $38,000. The dealer has a leasing arrangement where you pay $105 today and $505 per month for the next three years. If you purchase the car, you will pay it off in monthly payments over the next three years at an APR of 6 percent. You believe that you will be able to sell the car for $26,000 in three years. a. What is the present value of leasing the car
Answer:
The present value of leasing the car is $16,704.86 and the break even sale price is $25483.48.
Explanation:
Solution
Given that
The monthly rate =0.06/12 =(6%/12)
the number of period = 3 * 12 =23
Now
The present value of leasing the car is computed below:
Payment day =$105
add: Present value of future monthly payment = 505 * (1-(1+(0.06/12))^-36/(0.06/12)
= 166,599,86
Present value of the car =$105 +$166,599,86
=$16,704.86
Thus
The present value of purchasing the car:
Purchase cost = $38,000
Less: present value of resale = 26000/(1+(0.06/12))^-36
=21,726.77
Present value of purchasing the car is $38,000 + $21,726.77
=$16,273.23
Now
The break even sale price
Let the resale price be x
38000 -(x/((1+(0.06/12))^-36 =16704.86
(x/((1+(0.06/12))^-36 = 38000 - 16704.86
(x/((1+(0.06/12))^-36 = 21295.14
x = ((1+(0.06/12))^-36 * 212954.14
x = 25483.48
Therefore the present value of leasing the car is $16,704.86 and the break even sale price is $25483.48