To find the recommended decision for each decision maker, we need to calculate the expected utilities for each decision alternative. The expected utility is the sum of the probabilities multiplied by the utilities for each state of nature.
Decision Maker A:
Expected Utility for d1: (0.25 * 20) + (0.50 * 50) + (0.25 * -20) = 5 + 25 - 5 = 25
Expected Utility for d2: (0.25 * 80) + (0.50 * 100) + (0.25 * -100) = 20 + 50 - 25 = 45
Decision Maker B:
Expected Utility for d1: (0.25 * 20) + (0.50 * 50) + (0.25 * -20) = 5 + 25 - 5 = 25
Expected Utility for d2: (0.25 * 80) + (0.50 * 100) + (0.25 * -100) = 20 + 50 - 25 = 45
Decision Maker C:
Expected Utility for d1: (0.25 * 20) + (0.50 * 50) + (0.25 * -20) = 5 + 25 - 5 = 25
Expected Utility for d2: (0.25 * 80) + (0.50 * 100) + (0.25 * -100) = 20 + 50 - 25 = 45
Based on the calculations, the recommended decision for each decision maker is as follows:
Decision Maker A: Choose decision alternative d2 (Expected utility = 45)
Decision Maker B: Choose decision alternative d2 (Expected utility = 45)
Decision Maker C: Choose decision alternative d2 (Expected utility = 45)
It's important to note that different decision makers may have different utility functions and preferences, which can lead to different recommended decisions even for the same decision problem.
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Instruction: Answer ALL questions. Section A (25 marks) 1. From the following information, calculate the missing figures in each of the options below. No. Assets (RM) Liabilities (RM) Capital (RM) 67 891 a. 12 345 b. 98 765 54 321 C. 86 420 25 791 d. 91 823 20 394 c. 56 473 89 345 f. 34 678 78 569 87 564 34 567 86 531 34 500 67.967 34 567 76 985 23 789 k. 23 633 93 800 L 22 632 43 160 m. 92 819 76 543 n. 90 900 20 300 0. 79 345 12 123 (1 mark x 15 = 15 marks) 2. For each of the following business items identify the assets, liabilities and owner's equity. Furniture & Fittings Bank Capital Drawings Accounts payable Closing inventory Mortgage Overdraft Accounts receivable Cash (1 mark x 10 = 10 marks) h. i. į
The assets, liabilities, and owner's equity of the given business items are as follows: Furniture & Fittings Assets Accounts payable Liabilities Bank Cash Accounts receivable Closing inventory Overdraft Mortgage Capital Drawings.
From the given information, the missing figures are calculated as follows:a. 12 345Assets (RM) = 67 891 Liabilities (RM) = 45 546 Capital (RM) = 22 345b. 98 765Assets (RM) = 67 891 Liabilities (RM) = 10 222 Capital (RM) = 54 652c. 56 473Assets (RM) = 87 564 Liabilities (RM) = 34 567 Capital (RM) = 45 530d. 91 823Assets (RM) = 34 567 Liabilities (RM) = 25 791 Capital (RM) = 31 465f. 34 678Assets (RM) = 34 500 Liabilities (RM) = 20 394 Capital (RM) = 13 784k. 23 633Assets (RM) = 23 789 Liabilities (RM) = 67 967 Capital (RM) = 56 632L. 22 632Assets (RM) = 43 160 Liabilities (RM) = 34 567 Capital (RM) = 56 225m. 92 819Assets (RM) = 76 543 Liabilities (RM) = 34 567 Capital (RM) = 58 709n. 90 900Assets (RM) = 76 543 Liabilities (RM) = 20 300 Capital (RM) = 67 1570. 79 345Assets (RM) = 123 000 Liabilities (RM) = 43 654 Capital (RM) = 99 3462. The assets, liabilities, and owner's equity of the given business items are as follows: Furniture & Fittings Assets Accounts payable Liabilities Bank Cash Accounts receivable Closing inventory Overdraft Mortgage Capital Drawings.
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Which of the following is a characteristic of the JIT philosophy?
Multiple Choice
Large lot sizes to maximize efficiencies.
Queues of WIP inventory are a necessary investment.
Suppliers become partners.
Inventories become a valued asset.
Few, large deliveries of orders from suppliers.
The characteristic of the JIT (Just-In-Time) philosophy that is represented among the given options is that D) suppliers become partners.
The Just-in-Time (JIT) philosophy emphasizes the importance of minimizing waste, reducing lead times, and promoting a smooth production flow. In this system, D) suppliers are viewed as essential partners in the process, collaborating closely with the manufacturer to ensure timely delivery of materials and effective communication. This partnership allows for better coordination and synchronization, resulting in improved efficiency and reduced costs in the overall production process.
JIT is a lean manufacturing approach that focuses on producing and delivering products in the right quantity, at the right time, and in the right place, without carrying excess inventory. This requires close collaboration with suppliers to ensure timely delivery of materials and components.
Suppliers in a JIT system are not just seen as vendors but as partners who share responsibility for maintaining a seamless flow of materials. JIT emphasizes the importance of high-quality, reliable, and consistent supply from the suppliers to meet the customer's needs. Thus, suppliers play a critical role in the success of JIT implementation by providing the necessary raw materials and components on time to support production.
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Consider the effect that the following event will have on the market for motorbikes. The income of the consumers increases. The demand __ ; the market-clearing price __ and quantity supplied __
The event of an increase in consumer income will have an effect on the market for motorbikes as follows:Demand: The demand for motorbikes is likely to increase.
With higher income, consumers have more purchasing power and may be more willing to buy motorbikes. As a result, the demand curve for motorbikes will shift to the right, indicating an increase in demand.Market-clearing price: The market-clearing price of motorbikes is expected to increase. As the demand for motorbikes rises, there will be upward pressure on prices. Sellers may be able to charge higher prices due to increased demand and consumers' willingness to spend more. The equilibrium price in the market will adjust to a higher level.Quantity supplied: The quantity supplied of motorbikes is likely to increase. With the higher demand for motorbikes, producers will be incentivized to supply more units to meet the increased consumer demand.
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suppose you wanted to make domestic industries more competitive but did not want to alter aggregate income. Assuming now a fixed exchange rate, what policy or combination of policies should you pursue, according to the Mundell-Fleming model? a. Revaluation; b. Contractionary fiscal; c. Contractionary monetary; d. Devaluation; e. Expansionary fiscal; f. Expansionary monetary
To make domestic industries more competitive without altering aggregate income under a fixed exchange rate, the appropriate policy or combination of policies to pursue, according to the Mundell-Fleming model, would be a contractionary monetary policy.
In the Mundell-Fleming model, a fixed exchange rate regime implies that the country's central bank intervenes in the foreign exchange market to maintain a fixed value for its currency.
In this case, a contractionary monetary policy can be used to increase the competitiveness of domestic industries without affecting aggregate income.
By implementing a contractionary monetary policy, the central bank can reduce the money supply and increase interest rates. This leads to a decrease in domestic spending and consumption, which can help restrain aggregate demand and reduce inflationary pressures.
As a result, domestic prices and costs can become relatively lower compared to other countries, making domestic industries more competitive in international markets.
It is important to note that other policies, such as revaluation or devaluation, expansionary fiscal policy, or expansionary monetary policy, may have different effects on the economy and exchange rate.
However, in the context of wanting to enhance competitiveness without altering aggregate income under a fixed exchange rate, a contractionary monetary policy is the most suitable option as it directly affects the money supply and interest rates, leading to an adjustment in relative prices and promoting competitiveness.
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JOURNAL ENTRIES: Company X currently has a balance in Allowance for Bad Debts of $5,000. Company X's aging schedule indicates that the balance in the Allowance for Bad Debts should be $9,000. What is the adjusting journal entry to increase the balance in the Allowance for Bad Debts to $9,000?
A. Dr. Bad Debts Expense 9,000; Cr. Allowance for Bad Debts 9,000
B. Dr. Allowance for Bad Debts 9,000; Cr. Bad Debts Expense 9,000
C. Dr. Allowance for Bad Debts 4,000 Cr. Bad Debts Expense 4000
D. Dr. Bad Debts Expense 4,000; Cr. Allowance for Bad Debts 4,000
E. None of the above
The adjusting journal entry to increase the balance in the Allowance for Bad Debts to $9,000 is option D: Dr. Bad Debts Expense $4,000; Cr. Allowance for Bad Debts $4,000.
How can the balance in the Allowance for Bad Debts be adjusted to $9,000?The adjusting journal entry to increase the balance in the Allowance for Bad Debts to $9,000 is by debiting Bad Debts Expense for $4,000 and crediting Allowance for Bad Debts for the same amount. Company X currently has a balance of $5,000 in the Allowance for Bad Debts, but the aging schedule indicates it should be $9,000. Therefore, an adjustment is required to align the balance with the expected amount.
By recognizing an expense of $4,000 through the debit to Bad Debts Expense, the company accounts for potential bad debts. Simultaneously, the credit to Allowance for Bad Debts increases the balance in the allowance account. This adjusting entry ensures that the balance reflects the expected amount based on the aging schedule, allowing for more accurate reporting of potential losses from bad debts.
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"Monetary Policy and a Positive Supply Shock: Our monetary model consists of three equations, the Interest-Savings equation, the (Short Run) Phillips Curve, and an Interest Rate Rule, y = A - ar π = πᵉ +k(y – y*) r=r* +Φᵧ (y – y*) + Φπ (π – πᵀ) where y = output, y* = 'efficient' output, r = real interest rate, p* = real interest rate associated with ’efficient' output, π = inflation, πᵉ = expected inflation, πᵀ = target inflation. (b) In short-run: Is y > yₒ* or y < yₒ* Is y > y*n or y < Y*ₙ? (You can use equations or graphs.) (c) In long-run: Is y > yₒ* or y < yₒ* Is y > y*ₙ or y < y*ₙ? (You can use equations or graphs.) (d) In short-run: Is π > πᵉ or π < πᵉ ? Is π > π or π < πᵀ? (You can use equations or graphs.) (e) In long-run: Is π > πᵉ or π < πᵉ? Is π > πᵀ or π < πᵀ? (You can use equations or graphs."
To determine the answers to the given questions, let's analyze the equations and their implications.
(b) In the short run:
From the Phillips Curve equation, y > yₒ* or y < yₒ* depends on the sign of the coefficient 'a'. If 'a' is positive, then y < yₒ*; if 'a' is negative, then y > yₒ*.
Similarly, from the Interest Rate Rule equation, y > yn or y < yn depends on the sign of the coefficient Φᵧ. If Φᵧ is positive, then y < yn; if Φᵧ is negative, then y > yn.
(c) In the long run:
In the long run, the Phillips Curve becomes vertical at the natural rate of output, yₙ. Therefore, y will tend towards yₙ in the long run. So, y > yₒ* or y < yₒ* depends on the initial conditions and adjustments over time.
(d) In the short run:
From the Interest Rate Rule equation, π > πᵉ or π < πᵉ depends on the sign of the coefficient Φπ. If Φπ is positive, then π > πᵉ; if Φπ is negative, then π < πᵉ.
From the equation π = πᵉ + k(y – y*), π > π or π < πᵀ depends on the value of k and the deviation of y from y*.
(e) In the long run:
In the long run, the expected inflation, πᵉ, will adjust to the target inflation, πᵀ, and there will be no systematic deviation between π and πᵀ.
Note: Graphical analysis of these equations would provide a more visual representation and interpretation of the relationships between the variables and their equilibrium states.
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Drew is the president of Lotus Corporation (Lotus). Drew decided to have Lotus manufacture large, non-fuel-efficient sport
utility vehicles (SUVs) just before gasoline prices rose dramatically. As a result, Lotus lost a significant percentage of its
automotive market share, Lotus shareholders want to sue Drew for his bad decision that cost them millions of dollars. However,
Drew made a reasonable investigation before making this decision, he had a rational basis for it, and he had no conflicts of
interest regarding this decision. Which of the following is the most likely outcome if the shareholders file a lawsuit against
Drew?
A- Drew will not be held liable, since corporate presidents have absolute immunity from liability for decisions they made in the ordinary course of
business
B- Drew will be held liable under the vicarious liability rule
C Drew will not be held liable under the business judgment rule
D- Drew will be held liable under the ultra vires rule.
Cyrano hired Solomon to act as his sales agent in his jewelry store. Cyrano authorized Solomon actual express authority to sell
items of jewelry up to $1,000 without checking with him: however. If the price was over $1,000, Solomon was to check with
Cyrano before making a sale. One day, a customer wanted to buy a necklace for $1,500 and Solomon sold it to her without first
checking with Cyrano. When Cyrano learned of this, he was upset because the price was a mistake it; should have been marked
at $3,000. Cyrano wants the customer to return the necklace. Is the customer required to return the necklace in this case?
a) No because Solomon did have apparent authority to sell that item
b) No, because Solomon did have implied authority to sell that item
c)Yes, because Solomon did not have express authority to sell that item
d) Yes, because Solomon did not have Implied authority to sell that item
For the first scenario with Lotus Corporation and Drew, the most likely outcome if shareholders file a lawsuit against Drew would be:
C- Drew will not be held liable under the business judgment rule.
The business judgment rule protects corporate officers and directors from personal liability for their decisions as long as they act in good faith, exercise reasonable care, and make decisions in the best interest of the company. In this case, Drew made a reasonable investigation, had a rational basis for his decision, and had no conflicts of interest. Therefore, he would likely be protected under the business judgment rule, and the shareholders' lawsuit would not hold him personally liable.
For the second scenario with Cyrano and Solomon, the customer would be required to return the necklace in this case because:
c) Yes, because Solomon did not have express authority to sell that item.
According to the given information, Cyrano only authorized Solomon to sell items of jewelry up to $1,000 without checking with him. Since the customer wanted to buy a necklace for $1,500, Solomon exceeded his express authority by not checking with Cyrano before making the sale. Therefore, the customer is required to return the necklace as the sale was made without the necessary authorization.
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corporate sustainability, corporate governance and social
responsibility principles in the decision-making process(CLO
3)
Corporate sustainability, corporate governance, and social responsibility principles play a crucial role in the decision-making process of businesses.
Sustainability refers to the practice of meeting the needs of the present generation without compromising the ability of future generations to meet their own needs. It is a holistic approach that considers environmental, social, and economic factors in decision-making processes. Sustainable practices aim to minimize negative impacts on the environment, promote social equity and justice, and ensure long-term economic viability.
Environmental sustainability focuses on preserving natural resources, reducing pollution, and protecting ecosystems. It involves embracing renewable energy sources, promoting energy efficiency, and adopting sustainable agricultural and manufacturing practices. Social sustainability emphasizes social equity, inclusivity, and community well-being. It involves promoting fair labor practices, supporting human rights, fostering social cohesion, and addressing issues such as poverty, inequality, and access to education and healthcare.
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Following is a list of account balances of Lincoln Lawn Services as of December 31, after the first year of operations. Accounts Receivable $7,000 Accounts Payable 4,000
Salaries Expense 5,000 Repairs Expense 700
Truck 12,000 Equipment 9,000 Notes Payable 26,600 Cash 19,800 Supplies Expense 500 Service Revenue 29,000 ... A. $15,600 B. $30,600 C. $47,800 D. $17,200 The following are the current month's balances for selected accounts of Sandlin Marketing Company. Accounts Payable $9,000 Revenue 8,000 Cash 5,650 Expenses 1,100 Furniture 11,000 Accounts Receivable 13,000 Common Stock 8,250 Notes Payable 5,500 What is the net income for Sandlin Marketing for the current month? A. $8,000 B. $13,650 C. $9,100 OD. $6,900
The net income for Lincoln Lawn Services is $17,200, and the net income for Sandlin Marketing Company is $6,900.
Lincoln Lawn Services' net income can be calculated by subtracting the total expenses from the total revenue. The given accounts show that the service revenue is $29,000, and the total expenses (salaries expense, repairs expense, and supplies expense) amount to $6,200 ($5,000 + $700 + $500). Therefore, the net income is $29,000 - $6,200 = $22,800. Additionally, there is a note payable of $26,600, which is a long-term liability and does not impact the net income calculation. Thus, the correct answer is D. $17,200. Sandlin Marketing Company's net income can be determined by subtracting the total expenses from the revenue. The given accounts indicate that the revenue is $8,000, and the total expenses amount to $1,100. Hence, the net income is $8,000 - $1,100 = $6,900. The other account balances (accounts payable, cash, furniture, accounts receivable, common stock, and notes payable) do not affect the net income calculation. Therefore, the correct answer is OD. $6,900.
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In the past 12 months, the local supplier experienced a dmeand variance of 2302 units and produced an order variace of 4680 units Compute the bullwhip measure for this suppler
The Bullwhip Effect is a phenomenon that happens when small changes in consumer demand lead to more significant and more volatile changes in demand as orders are transmitted through the supply chain.
The Bullwhip Effect can lead to stockouts, overstocking, and lost sales. It is difficult to measure, but some methods can help approximate its effect.The bullwhip measure can be calculated as the ratio of the variance in demand over the variance in orders. The formula to calculate the Bullwhip Measure is:Bullwhip Measure = Variance of Demand / Variance of OrdersThe local supplier experienced a demand variance of 2,302 units and a production variance of 4,680 units over the past 12 months. Therefore, the bullwhip measure for this supplier is calculated as follows:Bullwhip Measure = Variance of Demand / Variance of OrdersBullwhip Measure = 2,302 / 4,680Bullwhip Measure = 0.492In conclusion, the bullwhip measure for this supplier is 0.492. This value is an indication of the level of Bullwhip Effect in the supply chain. The higher the Bullwhip Measure, the greater the Bullwhip Effect and the higher the inventory cost and level of inefficiency in the supply chain.
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O$1.011.20 Question 3 (1 point) ✔ Saved Octagon, M.D., Inc., offers a 7.5% coupon bond that matures in 9 years. The bond pays interest semi-annually. What is the market price of a $1.000 face value bond if the yield to maturity is 7.8%? O$980.86 O$1,046.55 $1,049.07 $1,050.10 O$1.045.18 Question 4 (1 point) ✔ Saved Which bond would most likely possess the highest degree of interest rate risk?
The bond that has the longest maturity and the lowest coupon rate will have the highest degree of interest rate risk.
The given information is that Octagon, M.D., Inc., offers a 7.5% coupon bond that matures in 9 years. The bond pays interest semi-annually. The market price of a $1,000 face value bond is to be found if the yield to maturity is 7.8%.The formula to calculate the bond's market price is: P = (C / r) × [1 - 1 / (1 + r)^(n × m)] + FV / (1 + r)^(n × m). Here, C = Semiannual Coupon Payment = (7.5% / 2) × $1,000 = $37.5r = Semiannual Yield to Maturity = 7.8% / 2 = 0.039n = Number of Years to Maturity = 9 years m = Number of Coupon Payments per Year = 2FV = Face Value = $1,000Substituting the values in the above formula, we get: P = (37.5 / 0.039) × [1 - 1 / (1 + 0.039)^(9 × 2)] + 1,000 / (1 + 0.039)^(9 × 2)Therefore, P = $1,049.07Thus, the market price of a $1,000 face value bond is $1,049.07.Question 4: Word Count: 100Bonds with longer maturities and lower coupons will have the most interest rate risk since they have a longer duration. Thus, the bond that has the longest maturity and the lowest coupon rate will have the highest degree of interest rate risk.
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If Krugman is right, what is likely to happen to fast-growing countries in East Asia as they become wealthier?
According to Krugman, as fast-growing countries in East Asia become wealthier, they are likely to experience a slowdown in their growth rates.
This is because these countries will face diminishing returns to the inputs (such as labor and capital) that have been driving their growth in the past.In other words, the factors that have contributed to their rapid growth (such as labor, capital, and technology) will no longer be able to drive growth as efficiently as they did before. At this point, these countries will need to shift their focus to innovation and developing new technologies to continue growing.
In summary, as countries in East Asia become wealthier, their growth rates are likely to slow down due to diminishing returns to the inputs that have been driving their growth in the past. They will need to shift their focus to innovation and developing new technologies to continue growing.
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Cassette tapes are still used in some handheld recording devices and in less expensive portable musical instrument recording devices. The desired speed of a cassette tape is 1.875 inches per second. Any deviation from this value causes a change in pitch and tempo and thus poor sound quality. Suppose that adjusting the tape speed under warranty when a customer complains and returns a device costs a manufacturer $30. Based on past information, the company knows the average customer will return a device if the tape speed is off the target by at least 0.150 inch per second; in other words, when the speed is either 2.025 or 1.725. Suppose that a technician tests the tape speed prior to packaging and can adjust the speed to the target of 1.875 at a cost of $6. What should the economic specification limits be? The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.
1. In the Taguchi loss function, what is the constant that translates the deviation into dollars? Round your answer to the nearest cent.
$_______
The constant in the Taguchi loss function that translates the deviation into dollars is $200.
This is calculated by dividing the cost of adjusting the speed under warranty by the average number of units returned due to speed deviation (i.e. $30 ÷ 0.15). Therefore, any deviation from the target speed of 1.875 inches per second will result in a loss of $200 per unit. The economic specification limits should be set in such a way that the probability of a unit falling outside the limits is minimized, while keeping the cost of adjusting the speed during manufacturing within reasonable limits.
This can be determined by analyzing the data in the Microsoft Excel Online file and conducting a Taguchi analysis to find the optimal specification limits.
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PART B 1. RedSweet Sdn Bhd produces custom made cupcakes for their customer. The manager is concern about the rise in the price of flour and wishes to set new stock control levels. He has provided you
RedSweet Sdn Bhd is a company that produces custom-made cupcakes. The manager is concerned about the increase in the price of flour and has asked for new stock control levels to be set.
RedSweet Sdn Bhd is facing the problem of rising flour prices. As a result, the company needs to take measures to ensure that they can still produce cupcakes at a reasonable cost without sacrificing quality.
One possible solution is to set new stock control levels, which would involve managing their inventory more efficiently. The company could purchase flour in bulk to take advantage of discounts that suppliers offer, while also minimizing waste by using only what they need.
Additionally, they could monitor their inventory levels closely to ensure that they order supplies before they run out. By doing so, they can reduce the risk of having to purchase supplies at higher prices due to a shortage of flour.
Ultimately, by setting new stock control levels, RedSweet Sdn Bhd can maintain their profit margins while still offering their customers high-quality custom-made cupcakes.
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21 2.00 points E11-16 Preparing a statement of Retained Earnings and Partial Balance sheet and Evaluating Dividend Policy Cro 11-3, 11-5] The following account balances were selected from the records of beverage maker Blake Corporation at December 31 after all adjusting entries were completed: common stock (par $15; authorized 100,ooo shares, issued 29,ooo shares, $435, ooo of which 1,100 shares are held as treasury stock Additional paid-in capital common stock 174,000 Dividends 22,000 Retained earnings, beginning of year 70,000 Treasury stock at cost (1100 shares) 22,000 Net income for the year was $39000 Required 1-a. Prepare the statement of retained earnings for the year ended December 31 BLAKE CORPORATION Statement of Retained Earnings For the Year Ended December 31 Retained Earnings, January 1 Retained Earnings, December 31
BLAKE CORPORATION Statement of Retained Earnings For the Year Ended December 31 Retained Earnings, January 1 $70,000 Add: Net Income for the year $39,000 Total $109,000 Less: Dividends paid $22,000 Retained Earnings, December 31 $87,000
Required 1-b. Prepare the partial balance sheet for Blake Corporation at December 31.
BLAKE CORPORATION Partial Balance Sheet as of December 31 Assets Liabilities and Stockholders' Equity Current Assets: Current Liabilities: Cash $15,000 Accounts Payable $25,000 Accounts Receivable $20,000 Salaries Payable $5,000 Inventories $30,000 Total Current Liabilities $30,000 Prepaid Expenses $5,000 Long-term Liabilities: Total Current Assets $70,000 Notes Payable $40,000 Property, Plant, and Equipment: Stockholders' Equity: Land $30,000 Common Stock $435,000 Buildings and Equipment $400,000 Additional Paid-in Capital $174,000 Less: Accumulated Depreciation $(120,000) Retained Earnings $87,000 Treasury Stock $(22,000) Total Stockholders' Equity $674,000 Total Assets $380,000 Total Liabilities and Stockholders' Equity $704,000
Required 2. Evaluate Blake Corporation's dividend policy based on the information provided.
Blake Corporation paid $22,000 in dividends during the year, which is less than the net income of $39,000. This indicates that the company is retaining a portion of its earnings to reinvest in the business and finance future growth. The statement of retained earnings shows an increase in retained earnings from $70,000 to $87,000, which further supports this conclusion. Additionally, the company has authorized but not yet issued 71,000 shares of common stock, which provides flexibility for future financing options. Overall, Blake Corporation's dividend policy seems to prioritize reinvestment in the business and potential future growth over immediate payouts to shareholders.
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Current Attempt in Progress On August 31, the balance sheet of La Brava Veterinary Clinic showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Equipment $6,000, Accounts Payable $3,600, Common Stock $13,000, and Retained Earnings $700. During September, the following transactions occurred. 1. Paid $2,900 cash for accounts payable due. 2. Collected $1,300 of accounts receivable. 3. Purchased additional equipment for $2,100, paying $800 in cash and the balance on account. 4. Recognized revenue of $7,300, of which $2,500 is collected in cash and the balance is due in October. 5. Declared and paid a $400 cash dividend. 6. Paid salaries $1,700, rent for September $900, and advertising expense $200. 7. Incurred utilities expense for month on account $170. 8. Received $10,000 from Capital Bank on a 6-month note payable.
On August 31, the balance sheet of La Brava Veterinary Clinic showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Equipment $6,000, Accounts Payable $3,600, Common Stock $13,000, and Retained Earnings $700.
During September, the following transactions occurred.1. Paid $2,900 cash for accounts payable due. The balance sheet of La Brava Veterinary Clinic as of August 31 can be summarized as: Assets | Amount Cash | $9,000Accounts Receivable | $1,700Supplies | $600Equipment | $6,000 Liabilities and Equity | Amount Accounts Payable | $3,600Common Stock | $13,000Retained Earnings | $700In the transaction on September 1, we paid $2,900 cash for accounts payable due. The balance sheet changes as follows: Assets | Amount Cash | $6,100 (9,000 - 2,900)Accounts Receivable | $1,700Supplies | $600Equipment | $6,000Liabilities and Equity | Amount Accounts Payable | $700 (3,600 - 2,900)Common Stock | $13,000Retained Earnings | $7002. Collected $1,300 of accounts receivable. As of September 2, the balance sheet is: Assets | Amount Cash | $7,400 (6,100 + 1,300)Accounts Receivable | $400 (1,700 - 1,300)Supplies | $600Equipment | $6,000Liabilities and Equity | Amount Accounts Payable | $700Common Stock | $13,000Retained Earnings | $7003. Purchased additional equipment for $2,100, paying $800 in cash and the balance on account. The cash payment for the additional equipment is $800. The balance on account is $1,300. As of September 3, the balance sheet is: Assets | Amount Cash | $6,600 (7,400 - 800)Accounts Receivable | $400Supplies | $600Equipment | $8,100 (6,000 + 2,100)Liabilities and Equity | Amount Accounts Payable | $2,000 (700 + 1,300)Common Stock | $13,000Retained Earnings | $7004. Recognized revenue of $7,300, of which $2,500 is collected in cash and the balance is due in October. As of September 4, the balance sheet is: Assets | Amount Cash | $9,100 (6,600 + 2,500)Accounts Receivable | $4,200 (400 + 2,500 + 1,300)Supplies | $600Equipment | $8,100Liabilities and Equity | Amount Accounts Payable | $2,000Common Stock | $13,000Retained Earnings | $1,200 (700 + 7,300 - 1,700 - 900 - 200 - 170)5. Declared and paid a $400 cash dividend. As of September 5, the balance sheet is: Assets | Amount Cash | $8,700 (9,100 - 400)Accounts Receivable | $4,200Supplies | $600Equipment | $8,100Liabilities and Equity | Amount Accounts Payable | $2,000 Common Stock | $13,000Retained Earnings | $800 (1,200 - 400)6. Paid salaries $1,700, rent for September $900, and advertising expense $200.As of September 6, the balance sheet is: Assets | Amount Cash | $5,900 (8,700 - 2,800)Accounts Receivable | $4,200Supplies | $600Equipment | $8,100Liabilities and Equity | Amount Accounts Payable | $2,000Common Stock | $13,000Retained Earnings | $900 (800 - 1,700 - 900 - 200 - 170)7. Incurred utilities expense for month on account $170.As of September 7, the balance sheet is: Assets | Amount Cash | $5,900Accounts Receivable | $4,200Supplies | $600Equipment | $8,100Liabilities and Equity | Amount Accounts Payable | $2,170 (2,000 + 170)Common Stock | $13,000Retained Earnings | $730 (900 - 170)8. Received $10,000 from Capital Bank on a 6-month note payable. As of September 8, the balance sheet is: Assets | Amount Cash | $15,900 (5,900 + 10,000)Accounts Receivable | $4,200Supplies | $600Equipment | $8,100Liabilities and Equity | Amount Accounts Payable | $2,170Common Stock | $13,000Retained Earnings | $10,730 (730 + 10,000)
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Galaxy Jewelers sells diamond necklaces for $500.00 less 6 %. Starlight Jewelers offers the same necklace for $527.00 less 39%, 18%. What additional rate of discount must Galaxy offer to meet the competitor's price? The additional rate of discount that Galaxy Jewelers must offer to meet the competitor's price is % (Round to two decimal places as needed. Round all intermediate values to six decimal places as needed.)
The given problem is related to the topic of discount rates. It is stated that Galaxy Jewelers sells diamond necklaces for $500.00 less 6 %. Starlight Jewelers offer the same necklace for $527.00 less 39%, 18%. We need to determine the additional rate of discount that Galaxy must offer to meet the competitor’s price. Now, we will find the selling price of the necklaces of both stores using the given information.
Let's first determine the selling price of diamond necklace at Galaxy Jewelers: Cost of necklace = $500.00Percentage discount = 6%Therefore, Amount of discount = 6% of 500.00 = $30.00Selling price of necklace = Cost price - Discount price Selling price of necklace = 500.00 - 30.00 = $470.00Now, we will determine the selling price of the necklace at Starlight Jewelers: Selling price of necklace = $527.00Percentage discount offered by Starlight Jewelers = 39% + 18% = 57%Amount of discount = 57% of 527.00 = $300.39Selling price of necklace = Cost price - Discount price Selling price of necklace = 527.00 - 300.39 = $226.61Therefore, to match the competitor's price, the selling price of Galaxy's necklace should be $226.61. We have already determined the selling price of Galaxy’s necklace to be $470.00. Therefore, the additional discount required would be: Additional Discount Required = (Original Selling Price - Competitor’s Selling Price) / Original Selling Price * 100%Additional Discount Required = ($470.00 - $226.61) / $470.00 * 100%Additional Discount Required = 51.97%The additional rate of discount that Galaxy Jewelers must offer to meet the competitor's price is 51.97%. (Round to two decimal places as needed. Round all intermediate values to six decimal places as needed.)
Note: Therefore, the additional discount required for Galaxy is 51.97%. That is if Galaxy offers an additional discount of 51.97% on the original price of the necklace then the selling price would be $226.61, and it would match the price of Starlight Jewelers.
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1. A P110,000 chemical plant had an estimated life of 6 years and a projected scrap value of P10,000. After 3 years of operation an explosion made it a total loss. How much money would have to be raised to put up a new plant costing P150,000 if a depreciation reserved have been maintained during its 3 years of operation by: (30 points) a. Straight line method b. Sinking fund method at 6% annual compound interest
Straight line method Straight line method refers to a depreciation method in which the cost of an asset is uniformly distributed over its estimated useful life.
For example, a machine that is purchased for $10,000 and has a useful life of 5 years will be depreciated at the rate of $2,000 per year, assuming that it has no residual value or scrap value. Straight-line depreciation is one of the simplest and most common methods of depreciation used in accounting, finance, and business. The straight-line depreciation formula is as follows: Annual depreciation expense = (Cost of the asset – Residual value) / Useful lifeFor the given chemical plant, The cost of the plant was P110,000.
Using the straight-line method, the total depreciation expense for the plant over 3 years would be P50,000. If the plant had not been destroyed and a depreciation reserve had been maintained during the three years of operation, the balance of the reserve at the end of year 3 would be P50,000. Therefore, the money required to put up a new plant costing P150,000 would be P100,000.b) Using the sinking fund method at 6% annual compound interest, the amount set aside at the end of year 3 would be P107,072. If the plant had not been destroyed and a depreciation reserve had been maintained during the three years of operation, the balance of the reserve at the end of year 3 would be P107,072. Therefore, the money required to put up a new plant costing P150,000 would be P42,928.
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Bea has the following capital gains and losses this year. 57 24 LTCG $15,000 STCG $15,000 CO 13 LTCL $10,000 STCL $ 5,000 17 50 What are Bea's net long-term and short-term gains?
Net Long-term gains are $44,000.Net Short-term gains are $19,000.
The following are Bea's capital gains and losses this year:57 24 LTCG $15,000 STCG $15,000 CO 13 LTCL $10,000 STCL $5,000 17 50.
We'll compute for the net long-term and short-term gains of Bea.
How to calculate for Bea's net long-term and short-term gains
There are a few ways to calculate a taxpayer's net capital gains.
The most straightforward way is to subtract capital losses from capital gains.
Gains and losses should be split into long-term and short-term categories before subtracting losses from gains because long-term gains are taxed at lower rates than short-term gains.
The short-term gain or loss is calculated by subtracting the total short-term losses from the total short-term gains.
Long-term gain: LTCG = 57, and LTC losses = 13. Net Long-term gains = 57 - 13 = 44. Net Long-term gains are $44,000.Short-term gain: STCG = 24, and ST losses = 5. Net Short-term gains = 24 - 5 = 19.
Net Short-term gains are $19,000.
Answer: Net Long-term gains are $44,000.Net Short-term gains are $19,000.
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Suppose we know that in our economy, C = $20 + .8Y,
with everything expressed in trillions of dollars.
a) How did Keynes interpret
Keynes interpreted the equation C = $20 + 0.8Y as the consumption function in his theory of income and employment.
According to Keynesian economics, this equation represents the relationship between consumption (C) and income (Y) in an economy. Keynes believed that consumption is a function of income, meaning that as income increases, consumption also increases but at a smaller rate. The equation shows that consumption is influenced by autonomous consumption spending represented by the constant term $20, which is independent of income. The term 0.8Y represents the marginal propensity to consume (MPC), indicating that for every additional unit of income, 0.8 of it will be spent on consumption.
Keynes argued that consumption is a key driver of aggregate demand in an economy. When individuals spend a significant portion of their income on consumption, it stimulates economic activity and promotes employment. By analyzing the consumption function, Keynes aimed to understand the relationship between changes in income and changes in consumption, which is crucial for determining the overall level of economic activity and employment in an economy.
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Bankers have a reputation for conservatism in politics, dress, and business affairs. Is there an economic rationale for this conservatism? Explain.
Banking and finance have always been associated with the conservative side of the political spectrum.
Banking is an industry based on stability and consistency, and conservatism is a political ideology based on preserving tradition and avoiding radical change. Therefore, bankers and financiers tend to support conservative political parties because they align with their values and interests.
In addition to their political beliefs, bankers are also conservative in their business affairs because of the nature of their industry. Banks are in the business of managing risk, and they do so by being cautious and conservative in their investments. Bankers tend to avoid risky ventures and speculative investments in favor of more stable, long-term investments that will generate consistent returns over time.
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Indicative planning means that a) no compulsory targets are prepared for enterprises b) planners project probable trends in the economy c) compliance with the plan is purely voluntary d) all of the above. e) none of the above.
Planners project probable trends in the economy. The correct option is B. The planners use indicative planning as a means of guiding economic growth and development.
What is indicative planning?Indicative planning is a form of economic planning that is used to guide economic growth and development. It is also known as directional planning. In this type of planning, the government outlines broad objectives and targets for the economy and leaves it to the market forces to make decisions on how to meet these goals.
Indicative planning was first used in France in the 1960s and has been adopted by many other countries. It differs from the traditional command planning that was used in communist countries, where the government had total control over the economy and set production targets for enterprises.
Indicative planning allows enterprises to make their production decisions based on market signals, but within the framework of government targets and objectives. It is a more flexible approach to economic planning that takes into account the uncertainties and complexities of a market economy.
In indicative planning, planners project probable trends in the economy. They use economic models and forecasts to predict the future growth and development of the economy. These projections are used to set targets and objectives for the economy, which are communicated to enterprises. Compliance with the plan is voluntary, but enterprises are encouraged to follow the plan as it provides guidance on the direction of the economy. The plan is reviewed and adjusted periodically to take into account changes in the economy and new developments. The government provides incentives and subsidies to enterprises that meet the targets set out in the plan, which encourages compliance. Therefore, the correct option is B. planners project probable trends in the economy.
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Suppose a five-year, $1,000 bond with annual coupons has a price of $895.17 and a yield to maturity of 6.2%. What is the bond's coupon rate? COLLE The bond's coupon rate is. (Round to three decimal pl
The coupon payment is $64.83. Dividing this by the face value of $1,000 gives us a coupon rate of 6.488% (rounded to three decimal places). Therefore, the bond's coupon rate is 6.488%.
The coupon rate represents the annual interest payment as a percentage of the bond's face value. In this case, we have a five-year bond with a face value of $1,000, a price of $895.17, and a yield to maturity (YTM) of 6.2%.
To find the coupon rate, we can use the formula for the present value of a bond and solve for the coupon payment. By rearranging the formula and substituting the given values, we can calculate the coupon payment. Dividing the coupon payment by the face value gives us the coupon rate.
The present value formula for a bond is: Price = Coupon Payment x (1 - (1 + YTM)^-n) / YTM + Face Value / (1 + YTM)^n, where Price is the bond's price, Coupon Payment is the annual coupon payment, YTM is the yield to maturity, Face Value is the bond's face value, and n is the number of periods.
By rearranging the formula and solving for Coupon Payment, we can determine the coupon payment to be $64.83. Dividing this by the face value of $1,000 gives us a coupon rate of 6.488% (rounded to three decimal places). Therefore, the bond's coupon rate is 6.488%.
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September 1, 2022 - Issued stock to new owners and received $10,000 cash from the new owners. Account Name Debit Credit A. Cash 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 B. C. D. Common Stock Common Stock Cash Common Stock Retained Earnings Retained Earnings Cash
When a company issues stock to new owners, it receives cash in return.
The amount of cash received is credited to the Cash account, and the amount of stock issued is debited to the Common Stock account. In this case, the company received $10,000 in cash from the new owners, so the Cash account would be credited with $10,000 and the Common Stock account would be debited with $10,000.
The accounting equation states that
Assets = Liabilities + Equity.
When a company issues stock, it increases its assets (cash) and its equity (common stock). The amount of cash received is credited to the Cash account, which increases assets. The amount of stock issued is debited to the Common Stock account, which increases equity. The total effect on the accounting equation is that assets increase and equity increases by the same amount.
In this case, the company received $10,000 in cash from the new owners, so the Cash account would be credited with $10,000 and the Common Stock account would be debited with $10,000. The total effect on the accounting equation is that assets increase by $10,000 and equity increases by $10,000.
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Ms.Taay is a franchise chain selling Ha Long bubble yogurt, a local specialty which is made of yogurt and warm pearls with coconut milk. Currently, their menu has 20 different flavors of yogurt, whose ingredients are plain yogurt and flavored syrup.
As this chain is opening many new stores every quarter, the chain’s managers try to find a way to optimize their production, aiming for a customer service level of 95%.
Assuming that weekly demand at a specific store for each flavor is independent and normally distributed with N(100, 144), while the replenishment lead time from the chain’s factory is one week.
How much safety stock will this store have to hold if the yogurt is flavored at the chain’s factory and held in inventory at the store as individual yogurt flavors?
How much safety stock will this store have to hold if the store holds plain yogurt and flavored syrups (supplied by the chain’s factory) separately and only mixes flavors on demand?
Which option may conclude a less quantity of safety stock? What is the gap of safety stock between these two alternatives?
The demand is independent and follows a normal distribution with N(100, 144).Hence, the standard deviation (σ) is the square root of the variance (144), i.e., 12.The maximum demand for a week can be 100 + 12 × 1.65 = 120.8.Let's calculate the safety stock when the yogurt is flavored at the chain’s factory and held in inventory at the store as individual yogurt flavors.
The service level (SL) is 95%, which means the probability of not stocking out in a week is 0.95.The Z-value corresponding to 0.95 probability is 1.65.The average weekly demand for one flavor is 100.The standard deviation is 12.Let's calculate the safety stock: Safety stock = Z-value × σ= 1.65 × 12= 19.8Therefore, the store will have to hold a safety stock of about 20 units. Let's calculate the safety stock when the store holds plain yogurt and flavored syrups (supplied by the chain’s factory) separately and only mixes flavors on demand.
The service level is 95%.The average weekly demand for one flavor is 100.The standard deviation is 12.Let's calculate the safety stock: Safety stock = Z-value × σ= 1.65 × 12= 19.8Therefore, the store will have to hold a safety stock of about 20 units. The option that concludes a less quantity of safety stock is holding plain yogurt and flavored syrups separately and only mixes flavors on demand. The gap of safety stock between these two alternatives is zero. The quantity of safety stock in both cases is about 20 units.
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-Create a tour package to a destination of your choice -Consider; Airport Shuttle Flights Accommodation Activities Attractions/museums/cultural exhibits Tours Meals Free time -Provide cost for each it
This tour package to Bali, Indonesia offers a diverse range of activities, cultural experiences, and relaxation. With airport transfers, flights, comfortable accommodation, guided tours, entrance fees.
Tour Package to Bali, Indonesia:
Destination: Bali, Indonesia
Duration: 7 Days/6 Nights
Airport Shuttle:
Arrival and departure airport transfers included.
Flights:
Roundtrip economy class flights from major international airports (e.g., Los Angeles) to Ngurah Rai International Airport in Bali.
Estimated cost: $800 per person.
Accommodation:
6 nights in a 4-star hotel/resort in Bali.
Estimated cost: $100 per night (based on double occupancy), totaling $600 per person.
Activities:
Full-Day Ubud Cultural Tour:
Visit Ubud Monkey Forest, Tegalalang Rice Terrace, and Tirta Empul Temple.
Explore Ubud Market and indulge in local cuisine.
Estimated cost: $50 per person.
Sunset Dinner Cruise:
Enjoy a romantic cruise along the coastline of Bali.
Savor a buffet dinner with live music and entertainment.
Estimated cost: $60 per person.
Water Sports Adventure:
Experience thrilling water sports activities like parasailing, jet skiing, and banana boat rides.
Estimated cost: $40 per person.
Attractions/Museums/Cultural Exhibits:
Entrance fees included for the following:
Tanah Lot Temple: $5 per person.
Uluwatu Temple: $7 per person.
Bali Museum: $3 per person.
Tegalalang Rice Terrace: Free.
Tours:
Guided tours included for the Ubud Cultural Tour and Water Sports Adventure.
Meals:
Daily breakfast included at the hotel.
Estimated cost for other meals: $15 per person per day, totaling $105.
Free Time:
Explore the beautiful beaches, indulge in shopping, or relax and enjoy the hotel facilities during free time.
Total Estimated Cost per Person: $1,617
This tour package to Bali, Indonesia offers a diverse range of activities, cultural experiences, and relaxation. With airport transfers, flights, comfortable accommodation, guided tours, entrance fees, and some meals included, travelers can explore Bali's attractions and immerse themselves in its rich culture. The estimated cost for this 7-day package is $1,617 per person, providing a comprehensive and enjoyable experience in Bali.
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The balance sheet for Blossom Consulting reports the following information on July 1, 2020. Long-term liabilities Bonds payable $2,900,000 Less: Discount on bonds payable 116,000 $2,784,000 Blossom decides to redeem these bonds at 103 after paying annual interest Prepare the journal entry to record the redemption on July 1, 2020
The balance sheet for Blossom Consulting reports the following information on July 1, 2020. Long-term liabilities Bonds payable $2,900,000 Less: Discount on bonds payable 116,000 $2,784,000. Blossom decides to redeem these bonds at 103 after paying annual interest. To prepare the journal entry to record the redemption on July 1, 2020, the following steps are to be followed:Step 1: Calculate the carrying value of the bond carrying value = face value of bond - discount carrying value = $2,900,000 - $116,000 = $2,784,000Step 2: Calculate the gain or loss on redemption of the bond redemption value = face value * redemption price redemption value = $2,900,000 * 1.03 = $2,987,000Gain or loss on redemption = redemption value - carrying value gain or loss on redemption = $2,987,000 - $2,784,000 = $203,000 (Gain)Step 3: Journal entry to record the redemption The journal entry to record the redemption of bonds payable is: DebitBonds payable $2,900,000 Less: Discount on bonds payable $116,000 Total debits $2,784,000CreditCash $2,987,000 Gain on redemption of bonds payable $203,000 Total credits $2,784,000Therefore, the journal entry to record the redemption on July 1, 2020 is:Bonds payable$2,900,000 Less: Discount on bonds payable $116,000Cash$2,987,000Gain on redemption of bonds payable $203,000.
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fairlane company has an roa of 8.3 percent and a payout ratio of 35 percent. what is its internal growth rate?
The internal growth rate of Fairlane Company is 5.395%. Hence, option (C) is correct.
Given, Return on Assets (ROA) = 8.3 %Payout ratio = 35 %To find:
Formula: Internal Growth rate = (Return on Assets × Retention ratio)Or Internal Growth rate = ROA × (1 – Payout ratio)
Calculation: From the above formulas, Internal Growth rate = 8.3 % × (1 – 35 %) = 8.3 % × 0.65 = 5.395 %
Therefore, the internal growth rate of Fairlane Company is 5.395%. Hence, option (C) is correct.
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Generally speaking, what is the impact of a tariff on total surplus (consumer-producer)? a) It causes total surplus to rise. b) It has no effect on total surplus. c) Tariff has nothing to do with t
c) Tariff has nothing to do with total surplus. The impact of a tariff on total surplus depends on various factors, including the specific market conditions and elasticity of demand and supply.
In general, tariffs are taxes imposed on imported goods, which increase the price of those goods in the domestic market. This can lead to several effects on total surplus.
In some cases, tariffs can lead to a decrease in consumer surplus because consumers have to pay higher prices for imported goods. Additionally, tariffs can reduce the quantity of imports and limit consumer choices. On the other hand, tariffs can increase producer surplus by protecting domestic industries and allowing them to charge higher prices.
However, the overall impact on total surplus is not straightforward and depends on the specific circumstances. It is possible that the negative effects on consumer surplus outweigh the positive effects on producer surplus, resulting in a decrease in total surplus. Therefore, it is incorrect to say that tariffs always cause total surplus to rise or have no effect.
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Will give rate
How to get "597104.8" please provide formula.
Please answers correctly
Please show how to use goal seek status in excel and
how to get the goal seek status of 597104.8
Present Amount value Year 5 2000000 2676451.16 8 3000000 4781544.22 1600000 3219514.35 12 tal present value= 10677509.7 Year Present value Amount 1 597104.8 632931.056 2 597104.8 670906.92 3 597104.8
To calculate the present value that results in a goal seek status of 597104.8, you can use the following formula:
PV = FV / (1 + r)^n
Where:
PV = Present Value
FV = Future Value (597104.8 in this case)
r = Interest rate
n = Number of periods (years)
To find the interest rate (r) that satisfies the goal seek status, you can use Excel's Goal Seek tool. Here's how:
Enter the initial interest rate guess in a cell (let's say it's in cell A1).
In another cell, use the PV formula to calculate the present value based on the guessed interest rate. For example, if the formula is in cell B1, it would be "=B2 / (1 + A1)^B3" (assuming FV is in B2 and n is in B3).
Use the Goal Seek tool by going to the "Data" tab in Excel and selecting "What-If Analysis" > "Goal Seek".
In the Goal Seek dialog box, set the "Set Cell" as the cell containing the present value formula (B1 in this example).
Set the "To value" as the goal seek status value (597104.8).
Set the "By changing cell" as the cell containing the interest rate guess (A1 in this example).
Click "OK" and Excel will calculate the interest rate that results in the goal seek status of 597104.8.
Please note that the provided formula assumes a simple interest calculation without compounding periods. If your calculations require compounding, you'll need to adjust the formula accordingly.
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