(a) Recommendation for overbooking If the Star Hotel is overbooked for n rooms, the expected number of guests who will arrive. There is some risk of having to pay the cost of not honoring a reservation, this risk is outweighed by the expected profit from the additional bookings.
[tex]$$n(1 - P(0) - P(1) - ... - P(n-1))$$[/tex]For a hotel room that costs $98 per night, the profit per room is $98. For overbookings, the cost of not honoring a reservation is $150. Hence, we can calculate the expected profit for each overbooking level n as follows: Expected profit = n * ($98 - $150) * (1 - P(0) - P(1) - ... - P(n-1)) = n * (-$52) * (1 - P(0) - P(1) - ... - P(n-1))(b) Expected loss for overbooking. We can calculate the expected loss for each overbooking level n as follows: Expected loss = n * $150 * (P(0) + P(1) + ... + P(n-1))(c) Reasoning for selecting the overbooking choice hotel should select the overbooking level that maximizes its expected profit. The overbooking level that maximizes expected profit is the one that makes the expected profit as large as possible. If we compute the expected profit for each possible overbooking level, we get: Overbooking level (n) = 0 Expected profit = 0Overbooking level (n) = 1 Expected profit = - $52 * (1 - 0.12) = - $45.76Overbooking level (n) = 2 Expected profit = - $52 * (1 - 0.12 - 0.07) = - $34.72Overbooking level (n) = 3 Expected profit = - $52 * (1 - 0.12 - 0.07 - 0.1) = - $28.16Overbooking level (n) = 4 Expected profit = - $52 * (1 - 0.12 - 0.07 - 0.1 - 0.02) = - $21.60Overbooking level (n) = 5 Expected profit = - $52 * (1 - 0.12 - 0.07 - 0.1 - 0.02 - 0.07) = - $29.92Overbooking level (n) = 6 Expected profit = - $52 * (1 - 0.12 - 0.07 - 0.1 - 0.02 - 0.07 - 0.22) = $12.96Overbooking level (n) = 7 Expected profit = - $52 * (1 - 0.12 - 0.07 - 0.1 - 0.02 - 0.07 - 0.22 - 0.04) = $0.20Overbooking level (n) = 8 Expected profit = - $52 * (1 - 0.12 - 0.07 - 0.1 - 0.02 - 0.07 - 0.22 - 0.04 - 0.19) = - $17.12Overbooking level (n) = 9 Expected profit = - $52 * (1 - 0.12 - 0.07 - 0.1 - 0.02 - 0.07 - 0.22 - 0.04 - 0.19 - 0.01) = - $13.76The overbooking level that maximizes expected profit is 6. Therefore, the hotel should overbook by 6 rooms. The expected profit for this overbooking level is $12.96.The expected loss for overbooking 6 rooms:
[tex]$$6 * $150 * (0.12 + 0.07 + 0.10 + 0.02 + 0.07 + 0.22) = $1,959.60$$.[/tex]
The reason for selecting an overbooking level of 6 is that it maximizes the expected profit, which is the goal of the hotel. Although there is some risk of having to pay the cost of not honoring a reservation, this risk is outweighed by the expected profit from the additional bookings.
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In a linear programming problem, the objective function is to maximize profit. The dual price (shadow price) is $32 for a constraint restricting labor hours to 200 hours per week. If 2 more hours per week became available and this change is within the allowable limits for dual/ shadow price), then
If 2 more hours per week became available and this change is within the allowable limits for dual/shadow price), then the new profit-maximizing solution would involve producing more output with the same level of input.
The new profit-maximizing solution would involve finding the optimal levels of output and inputs that maximize profit subject to the constraint that labor hours do not exceed 200 hours per week. The new profit-maximizing solution would involve increasing output by 2 hours per week, and/or reducing input costs (such as wages or raw materials) to maximize profit subject to the constraint that labor hours do not exceed 200 hours per week.
The new profit-maximizing solution would result in higher profit than the original solution, assuming that the new levels of output and inputs result in a higher return on investment than the original levels. The new profit-maximizing solution would also result in a lower shadow price of labor hours, indicating that the additional labor hours are more cost-effective than the previous limit.
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Question 1: (7.5 points): B3, C3, D3 At the beginning of 2020 Mary Cor. issued 30,000 bonds for 10 years of $100 per bond. The stated rate was 2% and the market rate was 5%. Instruction: 1- Calculate
The carrying value of the bonds at the end of the year can be calculated by subtracting the total interest expense for the year from the beginning balance of the bond liability.
Question 1: (7.5 points): B3, C3, D3
At the beginning of 2020, Mary Corp. issued 30,000 bonds for a 10-year term, with each bond having a face value of $100. The stated rate on the bonds was 2%, while the market rate at the time of issuance was 5%.
To calculate:
3: Determine the present value of the bond.
To calculate the present value of the bond, we need to discount the future cash flows (interest payments and principal repayment) using the market rate of 5%.
C3: Calculate the interest expense for the year.
The interest expense for the year can be calculated by multiplying the beginning balance of the bond liability by the market interest rate of 5%.
D3: Determine the carrying value of the bonds at the end of the year.
The carrying value of the bonds at the end of the year can be calculated by subtracting the total interest expense for the year from the beginning balance of the bond liability.
By performing these calculations, we can assess the present value of the bond, determine the interest expense for the year, and find the carrying value of the bonds at the end of the year. These calculations provide valuable financial information for Mary Corp. and help in evaluating the impact of the bond issuance on the company's financial statements.
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Take a photo of a warning sign you see or find a warning sign online which you think attempts to limit occupier's liability. Once you have located an appropriate example, upload the image or text of the warning sign to the Assignment #4 link.
I cannot take a photo as I am an AI language model. how to complete this . Take a photo of a warning sign you see or find a warning sign online which you think are attempts to limit occupier's liability assigement .A warning sign is used to warn people of a potential hazard.
When these signs are displayed in a visible area, they provide a warning to those who may be affected. They are a method of limiting the occupier's liability since it is a way to warn people of the potential hazard that they may be exposed to. Hence, if an accident occurs after the warning has been placed, it will be hard to find the occupier guilty since the warning sign was visible to all .A warning sign may be used to alert people of dangers and to limit liability.
This sign is used to warn people that they should not enter a specific area. This sign can be used to prevent people from entering a dangerous area, to prevent vandalism, or to protect private property. Biohazard sign: This sign is used to indicate the presence of a biological hazard, such as a virus or bacteria, and is commonly found in laboratories or medical facilities .High voltage sign: This sign is used to warn people of the danger of electrocution, and is commonly found near electrical equipment or power lines.Flammable sign This sign is used to warn people of the presence of a flammable substance, and is commonly found near gas stations or chemical plants .Wet floor sign: This sign is used to warn people of the presence of a wet floor, which may be slippery and increase the risk of falling. This sign is commonly found in public places, such as shopping malls or airports .Upload the image or text of the warning sign to the Assignment.
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Create a business model canvas, about Programing Company and
identify and explain each of the business model canvas building
blocks for the company.
A programming company's business model canvas consists of several building blocks that define its key aspects. These building blocks include customer segments, value proposition, channels, customer relationships, revenue streams, key activities, key resources, key partners, and cost structure.
1. Customer Segments: This block identifies the target customers for the programming company, such as small businesses, startups, or enterprise clients. It helps the company understand the specific needs, preferences, and characteristics of its customer base.
2. Value Proposition: The value proposition outlines the unique services or solutions that the programming company offers to its customers. It highlights the benefits and value that customers can expect, such as custom software development, web application services, or IT consulting.
3. Channels: This block defines the distribution channels through which the programming company reaches its customers. It could include direct sales, online platforms, partnerships, or referral networks.
4. Customer Relationships: This block describes the type of relationships the company establishes with its customers. It could involve personalized support, long-term partnerships, or self-service platforms, depending on the company's target market and customer preferences.
5. Revenue Streams: The revenue streams outline the sources of income for the programming company. It could be project-based fees, subscription models, licensing fees, or maintenance contracts.
6. Key Activities: This block identifies the core activities required to operate the programming company successfully. It includes software development, quality assurance, project management, customer support, and continuous innovation.
7. Key Resources: The key resources highlight the essential assets and capabilities the programming company needs to deliver its services effectively. This could include skilled programmers, cutting-edge technology, infrastructure, and intellectual property.
8. Key Partners: This block identifies strategic partnerships and collaborations that are crucial for the programming company's success. It could involve software vendors, technology providers, outsourcing partners, or marketing agencies.
9. Cost Structure: The cost structure outlines the expenses incurred by the programming company to operate its business. It includes salaries, infrastructure costs, software licenses, marketing expenses, and ongoing maintenance costs.
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Project Planning
Planning is often the most difficult and unappreciated process in project management. Because planning is not always used to facilitate action, many people view planning negatively. The main purpose of project plans, however, is to guide project execution. To guide execution, plans must be realistic and useful, so a fair amount of time and effort must go into the planning process; people who are knowledgeable with the work need to plan the work.
EHR is relatively small, hence the most important planning documents to focus on are :
1. A team contract
2. A project scope statement
3. A work breakdown structure (WBS)
4. A project schedule
Soon after the project team signed the project charter, Project manager (PM) organized a team-building meeting for the project management EHR project. Inputs were collected from the team which is enough to develop the first draft of the scope statement. Another meeting is needed to further develop the scope statement and to start creating the WBS for the project.
Project planning is a crucial process in project management, as it guides project execution and ensures that the project is completed successfully.
However, planning is often viewed negatively and can be difficult to undertake. For small projects like EHR, it is important to focus on the most important planning documents, which include a team contract, a project scope statement, a work breakdown structure, and a project schedule.
After signing the project charter, the project manager for the EHR project organized a team-building meeting to collect inputs from the team members. These inputs were used to develop the first draft of the scope statement. However, it is important to note that another meeting is needed to further develop the scope statement and start creating the WBS for the project.
It is important for the planning process to involve people who are knowledgeable about the work being done in order to create realistic and useful plans. The planning process should not be viewed as an obstacle to action, but rather as a tool to guide execution and ensure project success. Therefore, it is crucial to allocate sufficient time and effort into the planning process. By focusing on the key planning documents and involving the right people, the EHR project can be effectively planned and executed.
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Bluefield Crop has two product lines, A and B Bluefield has identified the following information about its overhead and potential cost drivers Required : Suppose Bluefield Corp. uses a traditional costing system with number of labor hours as the cost driver Determine the amount of overhead assigned to each product line if Product A requires 70 percent of the labor hours and Product B requires 30 percent Suppose Bluefield uses a traditional costing system with machine hours as the cost driver Determine the amount of overhead assigned to each product line if Product A consumes 17.400 machine hours and Product B consumes 35.600. (Round intermediate calculations to 2 decimal places and your final answer to the nearest whole dollar amount.)
Using labor hours as the cost driver, the amount of overhead assigned to Product A is 70% of the total overhead, and to Product B is 30% of the total overhead.
Using machine hours as the cost driver, the amount of overhead assigned to Product A is $17,400 multiplied by the overhead rate per machine hour, and to Product B is $35,600 multiplied by the overhead rate per machine hour.
In a traditional costing system, overhead is allocated to products based on a predetermined cost driver. In this case, when labor hours are used as the cost driver, the overhead assigned to each product line is determined by the proportion of labor hours required by each product. Since Product A requires 70% of the labor hours and Product B requires 30%, the overhead assigned to Product A is 70% of the total overhead, and to Product B is 30% of the total overhead.
Similarly, when machine hours are used as the cost driver, the overhead assigned to each product line is determined by multiplying the machine hours consumed by each product by the overhead rate per machine hour. For Product A, the overhead is $17,400 multiplied by the overhead rate per machine hour, and for Product B, the overhead is $35,600 multiplied by the overhead rate per machine hour. The overhead rate per machine hour is calculated by dividing the total overhead by the total machine hours consumed by both products.
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Can someone answer this and explain why?
Which of the following would decrease the aggregate price level the short run?
a) Firms cutting investment in response to a gloomy economic forecast
b) A drought causing a lower than usual crop harvest
c) An increase in government expenditure
d) Feds lowering interest rates
D). Feds lowering interest rates. This is because the aggregate price level in the short run is affected by the level of demand in the economy. When the interest rates are lowered by the Federal Reserve, it leads to an increase in borrowing and spending by consumers and businesses.
As a result, the demand for goods and services increases, causing an increase in production and output levels. However, as the economy operates at full capacity in the short run, the increase in demand cannot be met by an equivalent increase in supply. Hence, the prices of goods and services increase at a slower rate, causing a decrease in the aggregate price level.
On the other hand, options A, B, and C would increase the aggregate price level. Firms cutting investment in response to a gloomy economic forecast would decrease the level of output and employment, leading to a decrease in supply and an increase in prices. A drought causing a lower than usual crop harvest would result in a decrease in supply, causing an increase in prices. An increase in government expenditure would increase the level of demand in the economy, causing an increase in prices.
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: Bronx Buses Inc. is a company that operates chartered buses for individual and business customers in the Bronx. Bronx Buses keeps track of its customers and buses with the two tables shown below in their database. Table Name Column names Customers Customer ID Buses Bus ID Last Name: Quote Street Address Price City State Zip Date: 4 Bus_ID Make Driver ID Year Ricardo, an accounting analyst at Bronx Buses, wants to merge these two tables. How should Ricardo merge the two tables? For the toolbar prorr ALTIFInines
To merge the "Customers" and "Buses" tables at Bronx Buses Inc., Ricardo can use the Customer ID and Bus ID columns as the common key to join the tables.
He can perform an INNER JOIN operation on the two tables, matching the Customer ID from the Customers table with the Bus ID from the Buses table. This will combine the relevant data from both tables based on the matching IDs. Ricardo can use a database management system or SQL query to execute the merge operation and create a new table or view that contains the consolidated information from the Customers and Buses tables. By merging these tables, Ricardo can analyze data that associates customers with specific buses for effective management and decision-making within the company.
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Manufacturing consists of activities and processing that convert raw materials into finished goods. What are the classifications of manufacturing costs? Discuss on the very important concept of Managerial Cost Concept," and how cost can be identified.
The classifications of manufacturing costs include direct materials, direct labor, and manufacturing overhead.
Managerial cost concept refers to the identification, measurement, and analysis of costs to assist managers in decision-making. Costs can be identified through cost allocation, cost tracing, and cost estimation.
The classifications of manufacturing costs are essential for understanding and tracking the expenses incurred in the production process. The three main categories of manufacturing costs are as follows:
Direct materials: These are the costs associated with the raw materials directly used in the production of goods. Examples include the cost of raw materials, components, and supplies that can be easily traced to specific products.
Direct labor: This includes the wages, salaries, and benefits paid to the workers who directly contribute to the manufacturing process. It encompasses the labor costs directly involved in producing goods or providing services.
Manufacturing overhead: Also known as indirect costs, manufacturing overhead includes various expenses that are not directly attributable to specific products but are necessary for the production process. Examples of manufacturing overhead costs include rent, utilities, equipment depreciation, factory maintenance, and indirect labor costs.
The managerial cost concept focuses on providing managers with relevant cost information for decision-making purposes. It involves identifying, measuring, and analyzing costs to assist in planning, controlling, and evaluating performance. By understanding costs, managers can make informed decisions regarding pricing, production volumes, cost reduction strategies, product mix, and resource allocation.
Cost identification is achieved through various methods:
Cost allocation: This involves assigning costs to specific cost objects, such as products, departments, or activities, based on predetermined allocation rules or cost drivers.
Cost tracing: This method involves directly linking costs to specific cost objects by physically tracking the resources used or the activities performed.
Cost estimation: When direct identification or tracing is not feasible, costs can be estimated using techniques such as historical data analysis, regression analysis, or engineering estimates.
Overall, the managerial cost concept emphasizes the importance of cost identification and analysis in supporting managerial decision-making, improving efficiency, and achieving cost-effective operations.
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A) Goodwill Question (5 points) Mario Bakery purchased the net assets of Qameh Bakery for $300,000 on December 31, 2020. The balance sheet of Qameh Bakery just prior to acquisition is Assets Cost Cash $60,300 FMV $60,300 Receivables 35,000 24,700 Inventories 15,700 20,000 Equipment 60,000 65,000 Patent 15,000 Total $171,000 $185,000 Liabilities & Equities Cost FMV $6,000 10,000 Accounts payable Common stock 65,000 65,000 100,000 110,000 Retained earnings Total $171,000 $185,000 Required Answer the following questions and fill-in your answers in the table on the first page. 1) What amount is assigned to goodwill? 2) Assuming the purchase price paid was $135,000. a. What is the difference between the purchase price and FMV of net identifiable 50,000 assets? b. This amount is assigned to which account? c. In which financial statement should this account appear? d. In which section of the financial statement should this account appear? Credit side Borgin on purchase Good Balance sheet "Ässet sich
This account should appear in the balance sheet. d. This account should appear in the section of the balance sheet that is related to assets.
1. $115,000 is assigned to goodwill. Word Count: 8.2. The difference between the purchase price and FMV of net identifiable assets is $85,000. a. $85,000 is assigned to goodwill. b. Goodwill is the account to which this amount is assigned. c. This account should appear in the balance sheet. d. This account should appear in the section of the balance sheet that is related to assets. Credit side Borgin on purchase Good Balance sheet "Ässet sich". 1. $115,000 is assigned to goodwill. Word Count: 8.2. The difference between the purchase price and FMV of net identifiable assets is $85,000. c. This account should appear in the balance sheet. d. This account should appear in the section of the balance sheet that is related to assets.
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1) The amount assigned to goodwill is $115,000. 2) a. The difference between the purchase price of $135,000 and the fair value of the net identifiable assets of $20,000 is $115,000.
1) The amount assigned to goodwill is $115,000.2)a. The difference between the purchase price of $135,000 and the fair value of the net identifiable assets of $20,000 is $115,000.b. This amount will be assigned to the goodwill account.c. The goodwill account should be presented in the balance sheet in the long-term asset section.d. The goodwill account should appear in the noncurrent assets section of the balance sheet. Goodwill is an intangible asset that represents the excess of the purchase price over the fair market value of net identifiable assets of the acquired business. In this scenario, the net assets of Qameh Bakery were purchased by Mario Bakery for $300,000. The fair value of net identifiable assets is $185,000. Therefore, the amount assigned to goodwill is $115,000.When the purchase price is less than the fair value of net identifiable assets, the difference is recorded as a gain from bargain purchase. But in this case, the purchase price is higher than the fair value of net identifiable assets.
Therefore, the excess amount is recorded as goodwill. Goodwill is not amortised but tested for impairment annually. If the value of goodwill is impaired, it is written off as an expense in the income statement. In this scenario, assuming that the purchase price paid was $135,000, the difference between the purchase price and the fair value of net identifiable assets is $115,000. This amount will be assigned to the goodwill account, which is presented in the balance sheet in the long-term asset section and the noncurrent assets section.
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Operations Identify one tactical operational improvement. Consider your company's Production Capacity, its Inventory Management, or its Workforce Management practices. Finance Identify one tactical financial improvement. Consider your company's Debt Management, Cash Management, or conduct a Ratio Analysis.
Tactical Operational Improvement: Inventory Management
One tactical operational improvement that can be implemented is improving inventory management practices. This can involve optimizing inventory levels, reducing excess or obsolete inventory, and improving inventory turnover. By implementing effective inventory management techniques, such as implementing a just-in-time (JIT) inventory system or utilizing inventory tracking software, a company can streamline its operations, reduce carrying costs, and ensure that inventory is available when needed.
Tactical Financial Improvement: Cash Management
One tactical financial improvement that can be implemented is improving cash management practices. This involves optimizing the company's cash flow, monitoring cash inflows and outflows, and implementing strategies to ensure sufficient cash reserves are available to meet short-term financial obligations. This can include negotiating favorable payment terms with suppliers, implementing efficient billing and collection processes, and closely managing cash flow projections. By improving cash management practices, a company can enhance its liquidity, reduce the need for external financing, and mitigate the risk of cash flow shortages.
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Deference is given to executive branch agencies under the Chevron test when… a. Congress has failed to pass a law on the topic of concern. b. the agency is acting in a capricious manner. c. the law is clear and unambiguous. d. Congress passed an ambiguous law and the agency has not acted arbitrarily.
The Chevron test has been developed by the Supreme Court to provide deference to executive branch agencies in the interpretation of ambiguous laws passed by Congress. Option D is the correct answer.
The deference is given to the agency only when Congress has passed an ambiguous law and the agency has not acted arbitrarily. Therefore, option D is the correct answer.
The Chevron test consists of two steps. First, the court asks whether the statute is clear or ambiguous on the point at issue. If the statute is clear and unambiguous, then the court must give effect to its plain meaning and not defer to the agency's interpretation. However, if the statute is ambiguous, then the court moves to step two of the test, which asks whether the agency's interpretation is reasonable.
The purpose of the Chevron test is to give the agency the benefit of the doubt when Congress has not spoken clearly on a particular issue. The court recognizes that Congress may not have the expertise or resources to address every issue in detail, and may delegate to agencies the task of filling in the gaps in the law. In these situations, the court defers to the agency's reasonable interpretation of the law, so long as it is not arbitrary or capricious.
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Question 1 exposure measures the change in the present value of the firm resulting from unexpected changes in exchange rates. A Accounting OB Transaction. OC. economic OD. Translation
Option "OD. Translation". In financial terms, exposure measures the sensitivity of a company's cash flows, assets, and liabilities to changes in exchange rates. Translation exposure arises from accounting systems when they are used to convert foreign assets or liabilities from one currency into another.
Exposure measures the sensitivity of a company's cash flows, assets, and liabilities to changes in exchange rates. The economic exposure is a measure of the impact of a currency exchange rate change on the present value of the firm. Unexpected changes in exchange rates result in a change in the present value of the firm and may lead to the company becoming insolvent. If the change in exchange rate occurs suddenly and the firm is not prepared to handle the change, then the company may be exposed to currency risk. However, it is the translation exposure that measures the change in the present value of the firm resulting from unexpected changes in exchange rates.The translation exposure arises when accounting systems are used to convert foreign assets or liabilities from one currency into another. It can occur when a company prepares its financial statements in one currency, but its operations take place in another currency. Translation exposure is the risk that a company faces when it converts its assets and liabilities from one currency to another currency during consolidation. Therefore, the correct answer is OD. Translation.
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Swifty Corporation estimates its sales at 300000 units in the first quarter and that sales will increase by 20000 units for each subsequent quarter during the year. The company has, and desires, an ending finished goods inventory equal to 25%. Each unit sells for $55. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is collected in the quarter following sale. Cash collections for the third quarter are budgeted at O $10648000 $18502000 O $21318000 O $15334000 A company has budgeted direct materials purchases of $310000 in July and $530000 in August. Past experience indicates that the company pays for 70% of its purchases in the month of purchase and the remaining 30% in the next month. All selling and administrative expenses are paid in cash as incurred. During August, the following items were budgeted Wages Expense $190000 Purchase of office equipment 63000 Selling and Administrative Expenses 51000 Depreciation Expense 43000 Budgeted cash disbursements for August are $717000 $464000 $768000 O $811000
To calculate the budgeted cash collections for the third quarter and the budgeted cash disbursements for August, we'll use the provided information.
Budgeted cash collections for the third quarter:
Calculate the cash sales for each quarter:
Cash sales = Sales units × Selling price × Cash sales percentage
First quarter cash sales = 300,000 × $55 × 40% = $6,600,000
Second quarter cash sales = (300,000 + 20,000) × $55 × 40% = $7,480,000
Third quarter cash sales = (300,000 + 20,000 + 20,000) × $55 × 40% = $8,360,000
Calculate the credit collections for each quarter:
Credit collections = Credit sales × Credit collection percentage
First quarter credit collections = (Sales units × Selling price) - First quarter cash sales
First quarter credit collections = (300,000 × $55) - $6,600,000 = $3,300,000
Second quarter credit collections = (300,000 + 20,000) × $55 × (1 - Cash sales percentage) × Credit collection percentage
Second quarter credit collections = (320,000 × $55) × (1 - 0.40) × 70% = $6,356,000
Third quarter credit collections = (320,000 + 20,000) × $55 × (1 - Cash sales percentage) × Credit collection percentage
Third quarter credit collections = (340,000 × $55) × (1 - 0.40) × 70% = $6,824,000
Calculate the total cash collections for the third quarter:
Total cash collections = Third quarter cash sales + Third quarter credit collections
Total cash collections = $8,360,000 + $6,824,000 = $15,184,000
Therefore, the budgeted cash collections for the third quarter are $15,184,000.
Budgeted cash disbursements for August:
Calculate the cash disbursements for purchases in July:
Cash disbursements for July purchases = July purchases × Payment percentage
Cash disbursements for July purchases = $310,000 × 70% = $217,000
Calculate the cash disbursements for purchases in August:
Cash disbursements for August purchases = August purchases × Payment percentage
Cash disbursements for August purchases = $530,000 × 30% = $159,000
Calculate the total cash disbursements for August:
Total cash disbursements = Cash disbursements for July purchases + Cash disbursements for August purchases + Selling and Administrative Expenses + Depreciation Expense + Purchase of office equipment
Total cash disbursements = $217,000 + $159,000 + $51,000 + $43,000 + $63,000 = $533,000
Therefore, the budgeted cash disbursements for August are $533,000.
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Transactions for the Hartman Company for the month of November are presented below. Journalize each transaction and identify each transaction by number. You may omit journal explanations.
1. Stockholders invested an additional $40,000 cash in the business.
2. Purchased land costing $18,000 for cash
3. Purchased equipment costing $45,000 for $4,500 cash and the remainder on credit.
4. Purchased supplies on account for $800.
5. Paid $3,000 for a one-year insurance policy.
6. Received $2,000 cash for services performed.
7. Received $5,000 for services previously performed on account.
8. Paid wages to employees for $2,500.
9. Paid dividends to stockholders of $400.
Journalize each transaction. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
The journalizing of transactions for the Hartman Company for the month of November, When $2,500 was paid in wages to employees: Salaries and Wages Expense $2,500, Cash $2,500.9. When dividends of $400 were paid to stockholders: Dividends $400, Cash $400.
Along with the identification of each transaction by number, are presented below. Journal entries are a way of recording the details of a transaction in a comprehensive and structured manner.Transactions:1. When the stockholders invested an additional $40,000 cash in the business: Cash $40,000, Common Stock $40,000.2. When land was purchased for $18,000 cash: Land $18,000, Cash $18,000.3. When equipment was purchased for $45,000, $4,500 in cash and the remainder on credit: Equipment $45,000, Cash $4,500, Accounts Payable $40,500.4. When supplies were purchased on account for $800: Supplies $800, Accounts Payable $800.5. When a one-year insurance policy was paid for $3,000: Prepaid Insurance $3,000, Cash $3,000.6. When $2,000 cash was received for services performed: Cash $2,000, Service Revenue $2,000.7. When $5,000 was received for services previously performed on account: Cash $5,000, Accounts Receivable $5,000.8. When $2,500 was paid in wages to employees: Salaries and Wages Expense $2,500, Cash $2,500.9. When dividends of $400 were paid to stockholders: Dividends $400, Cash $400.
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Assume the old rate is U.S. $1 : Euro $1.5 and the new rate is U.S. $1 : Euro $3.
Assume you are an American exporter. Is this a good thing for you or not? (A)
Let’s say the price of your product is U.S. $20.
Please show your work to demonstrate why this is a good thing or not a good thing for you
(hint: compare the prices of your product between old and new rates). (B)
Assume you are an American importer. Is this a good thing for you or not? (C)
Let’s say you have U.S. $1 million in as your budget to buy in European Union.
Please show your work to demonstrate why this is a good thing or not a good thing for you
(A) As an American exporter, a stronger U.S. dollar relative to the euro (from $1 = €1.5 to $1 = €3) is not a good thing.
(B)The price of the product in euros can be calculated by dividing the U.S. dollar price ($20) by the exchange rate.
(C) As an American importer, a stronger U.S. dollar relative to the euro is a good thing.
(A) When the U.S. dollar strengthens, it means that the value of the dollar increases relative to the euro. As an exporter, this makes your product more expensive for foreign buyers, as their currency (euro) can now buy fewer dollars. Therefore, the increase in the exchange rate from $1 = €1.5 to $1 = €3 would result in a higher price for your product in euros, potentially making it less competitive in the European market.
(B) Under the old rate, the price in euros would be €20 / 1.5 = €13.33. Under the new rate, the price in euros would be €20 / 3 = €6.67. Comparing the prices, the stronger dollar (new rate) would make your product more expensive in euros, potentially reducing demand and making it less favorable for your exporting business.
(C) When the U.S. dollar strengthens, it means that the value of the dollar increases relative to the euro. As an importer, this allows you to purchase more euros with the same amount of dollars. Therefore, with a stronger dollar, you would have more purchasing power in the European Union. In this scenario, having a budget of $1 million would allow you to buy more euros, enabling you to potentially acquire more goods or services from the European Union.
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According to Behavioral Economics,
Group of answer choices
people always behave rationally
people are never influenced by emotional and social factors in economic decision making.
people always employ marginal analysis in economic decision making.
people do not always behave rationally.
According to Behavioral Economics, people do not always behave rationally.
Behavioral Economics challenges the traditional assumption of rationality in economic decision-making. It recognizes that individuals are influenced by cognitive biases, emotions, and social factors when making economic choices. It highlights that human decision-making is often subject to systematic errors and deviations from perfect rationality.
Behavioral Economics studies how people's behavior and decision-making processes deviate from standard economic assumptions. It explores phenomena such as loss aversion, anchoring, confirmation bias, and social norms that impact individuals' economic choices.
By acknowledging the limitations of rationality, Behavioral Economics provides a more realistic understanding of human behavior in economic contexts. It emphasizes that people's decisions are often influenced by psychological and social factors, leading to deviations from purely rational decision-making. Understanding these behavioral biases and factors can have significant implications for economic theory, policy-making, and real-world applications. It allows for a more comprehensive analysis of economic phenomena, incorporating insights from psychology and social sciences to better explain and predict human behavior in economic contexts.
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View Policies Current Attempt in Progress During the current year, Chudrick Corporation expects to produce 11.000 units and has budgeted the following: net income $220,000, variable costs $994,000, and fixed costs $106.000. It has invested assets of $1,100,000. The company's budgeted ROI was 20%. What was its budgeted markup percentage using a full-cost approach
The budgeted markup percentage using a full-cost approach is 220%. A full-cost approach is used to determine the total cost of a unit, which includes variable and fixed costs, as well as a markup percentage for profit. Markup percentage is calculated by dividing profit by cost and then multiplying the answer by 100 to convert it to a percentage. This can be expressed as:
Markup percentage = (Profit/Cost) × 100. For Chudrick Corporation, the budgeted ROI was 20%. Return on investment (ROI) is the percentage of net income divided by investment assets. This can be expressed as: ROI = (Net income/Investment assets) × 100.Given that the company's net income was $220,000 and its investment assets were $1,100,000, the budgeted ROI was:ROI = (220,000/1,100,000) × 100ROI = 20%. Since the company's budgeted ROI was 20%, the profit would be 20% of the investment assets.. Profit = ROI × Investment assetsProfit = 20% × 1,100,000Profit = $220,000The total cost of production for 11,000 units can be calculated by adding variable and fixed costs: Total cost = Variable costs + Fixed costs. Total cost = $994,000 + $106,000Total cost = $1,100,000
Therefore, the cost per unit is:Cost per unit = Total cost/Units produced. Cost per unit = $1,100,000/11,000Cost per unit = $100. Finally, the budgeted markup percentage using a full-cost approach can be calculated by dividing the profit by the cost per unit and multiplying the answer by 100 to convert it to a percentage:Markup percentage = (Profit/Cost per unit) × 100Markup percentage = ($220,000/$100) × 100.Markup percentage = 220%. Therefore, the budgeted markup percentage using a full-cost approach is 220%.
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What is the legal effect of the term "As Is" or "As-Is Sale" in
the CAR® RPA in
relieving the seller’s broker/agent of obligations under the
Agent’s Visual
Inspection Disclosure (AVID)?
a
The term "As Is" or "As-Is Sale" in the CAR® RPA (California Residential Purchase Agreement) relieves the seller's broker/agent of obligations under the Agent's Visual Inspection Disclosure (AVID).
When the term "As Is" or "As-Is Sale" is used in the CAR® RPA, it signifies that the property is being sold in its current condition, without any warranties or guarantees from the seller. This means that the seller's broker/agent is not responsible for disclosing any visual defects or issues with the property through the AVID form.
The buyer is expected to conduct their own inspections and assessments to determine the condition of the property. By accepting the property in an "As Is" condition, the buyer acknowledges that they are assuming the risks associated with any existing or potential defects, relieving the seller's broker/agent from liability in relation to the AVID obligations.
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Do you believe that a practice needs to customize their message and services to a particular generation they are targeting? Or could a general message/service offering be sufficient in a big city like Bronx? What does everyone think? Why?
Yes, a practice needs to customize their message and services to a particular generation they are targeting. It offering may not be sufficient in a big city like Bronx. because different generations have different needs, preferences, and communication styles.
For instance, millennials are more likely to use social media to access health information and communicate with their healthcare providers, while baby boomers prefer face-to-face interactions and printed materials. Therefore, practices need to tailor their marketing and communication strategies to appeal to the specific generation they are targeting. They can use different platforms, channels, and formats to reach their target audience effectively. For example, they can use social media, email, SMS, mobile apps, or telemedicine to engage with millennials. On the other hand, they can use print media, phone calls, in-person visits, or webinars to interact with baby boomers. By customizing their message and services, practices can improve their patient engagement, retention, and satisfaction. They can also differentiate themselves from their competitors and build a strong brand reputation.
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How assets, liabilities, provisions and foreign exchange
transactions are recorded in the books of manufacturing companies
?
At the date a foreign currency transaction occurs, each asset, liability, revenue, expense, gain, or loss arising from the transaction is recorded in the functional currency of the recording entity using the exchange rate in effect at that date.
What are the liabilities of a manufacturing company?
In the manufacturing sector, liabilities refer to funding that was utilized to initially purchase the assets needed to make the goods. Manufacturing enterprises typically exhibit one or more credit lines used to fund the purchase of working capital and raw materials in their short-term liabilities.
A limited liability public business with its main operations limited to mining or oil exploration is known as a no-liability firm. Since they are not entitled to calls on the outstanding issue price of shares, these businesses are known as "no-liability" firms.
A company's foundation is secure when liabilities and equity are properly balanced.
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Now that cost increases are affecting all producers as a result of the Ukraine war, the question is how they will react and whether they will allow increases in the prices of their products. Imagine a manufacturer with a fixed marginal cost e.g. 10 kr. per unit. Due to foreign cost increases, the marginal cost increases to ISK 12. Then the question arises what happens to the price to the consumer. Will it increase by 2 ISK, more or less?
Explain this with a model of monopoly on the one hand and the oligopoly of two parties deciding on a quantity at the same time.
Explain in pictures and words using economic contexts what the models predict will happen for price and quantity.
Focus especially on how much the price rises and you can assume that the consumer's sensitivity to price changes will remain unchanged. You can also look at the demand being linear and consider what happens to consumers' sensitivity to price changes and its effect on price development and levies.
In both models, the exact price increase would depend on market conditions, competition, and the firms' strategic decisions.
In a monopoly model, where there is a single producer, the price increase would be greater than the marginal cost increase. The monopolistic producer has control over the market and can set prices based on the demand elasticity. Since the consumer's sensitivity to price changes remains unchanged, the producer would likely increase the price by an amount greater than the marginal cost increase of 2 ISK per unit.
In an oligopoly model with two parties making simultaneous quantity decisions, the price increase would depend on the level of competition and their reactions. If both parties anticipate that the other will increase prices, they might choose to do the same. This could lead to a price increase greater than the marginal cost increase. However, if there is intense competition and both parties are concerned about losing market share, they might try to absorb some of the cost increase and keep the price increase lower.
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Direct Labor Cost Budget Stevenson Inc. budgeted production of 63,000 personal journals in 20Y6. Each journal requires assembly, Assume that three minutes are required to assemble each journal. If assembly labor costs $13.75 per hour, determine the direct labor cost budget for 20Y6. Do not round your intermediate calculations but, if required, round your final answer to the nearest dollar.
The direct labor cost budget for 20Y6 is $59,062.To calculate the direct labor cost budget, we need to determine the total labor hours required for assembling the personal journals and multiply it by the labor cost per hour.
Given that each journal requires three minutes for assembly, we need to convert this to hours. Since there are 60 minutes in an hour, we can calculate the labor time per journal as 3/60 = 0.05 hours. To find the total labor hours required, we multiply the labor time per journal by the budgeted production of 63,000 journals: Total labor hours = Labor time per journal * Budgeted production Total labor hours = 0.05 hours/journal * 63,000 journals Total labor hours = 3,150 hours Finally, we multiply the total labor hours by the labor cost per hour of $13.75 to obtain the direct labor cost budget for 20Y6:Direct labor cost budget = Total labor hours * Labor cost per hour Direct labor cost budget = 3,150 hours * $13.75/hour
Direct labor cost budget ≈ $59,062 Therefore, the direct labor cost budget for 20Y6 is approximately $59,062.
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Portage Bay Enterprises has $2 million in excess cash, no debt, and is expected to have free cash flow of $14 million next year. Its FCF is then expected to grow at a rate of 2% per year forever. If Portage Bay's equity cost of capital is 11% and it has 6 million shares outstanding, what should be the price of Portage Bay stock?
The price of portage bay stock should be approximately $25.
To determine the price of portage bay stock, we can use the gordon growth model, also known as the dividend discount model (ddm), which values a stock based on its future cash flows.
the formula for the gordon growth model is:
price = dividend / (cost of equity - growth rate)
in this case, we can consider the free cash flow (fcf) as the equivalent of dividends since the company has no debt and is expected to have constant fcf growth.
first, we need to calculate the perpetuity value of the fcf:
perpetuity value = fcf * (1 + growth rate) / (cost of equity - growth rate)
fcf = $14 million
growth rate = 2%
cost of equity = 11%
perpetuity value = $14 million * (1 + 0.02) / (0.11 - 0.02)
perpetuity value = $14 million * 1.02 / 0.09
perpetuity value = $154 million
next, we can calculate the price of portage bay stock by dividing the perpetuity value by the number of shares outstanding:
price = perpetuity value / number of shares outstanding
number of shares outstanding = 6 million
price = $154 million / 6 million
price = $25.67 per share 67 per share.
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19. In essay form, make sure that your answer includes the answers to the following questions what is a statement of cash flows, why it is needed, the 3 cash flow activities and whether depreciation e
The statement of cash flows is a financial statement that provides information about the cash inflows and outflows of a company during a specific period. It is needed to understand the cash flow position of a company, its ability to generate cash, and how it utilizes cash in its operations.
The statement of cash flows is a crucial financial statement as it helps users assess the cash flow position of a company. It provides insights into the sources and uses of cash, helping stakeholders understand the company's liquidity, solvency, and ability to meet its financial obligations.
The statement of cash flows categorizes cash flows into three main activities: operating, investing, and financing activities. Operating activities include cash flows from the company's primary operations, such as cash received from customers and cash paid to suppliers. Investing activities involve cash flows related to the acquisition and disposal of long-term assets, such as property, plant, and equipment, as well as investments in other companies. Financing activities include cash flows related to the company's capital structure, such as cash received from issuing stocks or borrowing, and cash paid for dividends or debt repayment.
Depreciation is a non-cash expense that is recorded in the income statement to allocate the cost of an asset over its useful life. Since it does not involve the movement of cash, it is added back in the operating activities section of the statement of cash flows. This adjustment is made to reconcile the net income reported in the income statement with the actual cash generated or used in operating activities. By adding back depreciation, the statement of cash flows presents a more accurate picture of the cash flow generated from the company's operations.
In conclusion, the statement of cash flows provides valuable information about a company's cash flows and is essential for assessing its financial health. It categorizes cash flows into operating, investing, and financing activities, enabling stakeholders to evaluate the company's ability to generate and utilize cash. Depreciation, being a non-cash expense, is added back in the operating activities section to ensure the statement accurately reflects the cash flow from operating activities.
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"In which of the following prisoners' dilemma games is the noncooperative outcome actually bad for society as well as for the players?
(i) Two countries are involved in an arms race.
(ii) Oligopolists try to maintain monopoly profits.
(iii) Two oil producers act on their own self-interest when deciding how many wells to dig.
Select one answer:
a. (ii) and (iii)
b. (i) and (ii)
c. (i) and (iii)
d. All of the above are correct."
The noncooperative outcome is actually bad for society as well as for the players in scenarios (i) and (iii). In other words, options (i) and (iii) are the correct answers.
In an arms race between two countries (i), the noncooperative outcome leads to excessive spending on military armaments, resulting in a wasteful allocation of resources and potentially heightened tensions between the countries. This can have negative consequences for society as a whole, including the diversion of funds that could have been used for other social and economic needs. In the case of two oil producers acting on their own self-interest when deciding how many wells to dig (iii), the noncooperative outcome can lead to overproduction and a downward pressure on oil prices. This can negatively impact both the producers themselves, as they may experience lower profits.
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Alcoser Corporation's most recent balance sheet appears below. Comparative Balance Sheet Ending Beginning Balance Balance Assets: Cash and cash equivalents $ 59 $ 30 Accounts receivable 42 45 Inventory 60 83 Property, plant, and equipment 590 513 Less accumulated depreciation 226 215 Total assets $ 525 $ 456 Liabilities and stockholders' equity: Accounts payable $ 50 $ 59 Accrued liabilities 26 25 Income taxes payable 22 37 Bonds payable 238 209 Common stock 84 78 Retained earnings 100 48 Total liabilities and equity 525 $ 456 Net income for the year was $64. Cash dividends were 512. The company did not dispose of any property, plant, and equipment. It did following questions pertain to the company's statement of cash flows. The net cash provided by used in operating activities for the year was. Multiple Choice O $83 $101 $55 ($19)
The comparative balance sheet of Alcoser Corporation shows the account balances for two years. The net cash provided by used in operating activities for the year was $101. Thus, the correct option is B) $101.
Based on the provided information, the net cash provided by used in operating activities for the year was $101.The net income for the year was $64, which does not reconcile with the change in the retained earnings. To determine the amount of retained earnings, add net income to the beginning balance and subtract any dividends. Retained earnings = Beginning retained earnings + Net income - Dividends Retained earnings = $48 + $64 - $512Retained earnings = -$400Negative retained earnings indicate that dividends declared and paid during the year exceeded the net income. So, the comparative balance sheet of Alcoser Corporation is unbalanced and it needs to be adjusted. It is necessary to change the retained earnings balance to -$400 to make it balance. Net cash provided by used in operating activities is calculated using the indirect method, which starts with net income and then makes adjustments to account for changes in non-cash balance sheet accounts and cash transactions that are not reported in the income statement.
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a customer orientation toward pricing implicitly invokes the concept of:____
A customer orientation toward pricing implicitly invokes the concept of value.
When customers consider pricing, they are inherently seeking value for their money. Value refers to the perceived benefits and worth that customers associate with a product or service in relation to its price. It goes beyond the monetary cost and encompasses factors such as quality, features, convenience, and customer service. A customer-oriented approach to pricing aims to strike a balance between the price charged and the value delivered to the customer. By offering competitive prices that align with the perceived value, businesses can enhance the customer experience, drive customer satisfaction, and foster loyalty.
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All of the following were entrepreneurs who built powerful monopolies in the nineteenth century EXCEPT _____.
John Rockefeller
William Hurst
Cornelius Vanderbilt
Andrew Carnegie
All of the following were entrepreneurs who built powerful monopolies in the nineteenth century EXCEPT Andrew Carnegie.
Andrew Carnegie was not an entrepreneur who built powerful monopolies in the nineteenth century. The other entrepreneurs, i.e., John Rockefeller, William Hurst, and Cornelius Vanderbilt were all responsible for building powerful monopolies during the nineteenth century.
A monopoly is a situation in which there is only one provider of a good or service. A company with a monopoly controls the market for that product or service. As a result, they can set their own prices and restrict the supply of the product or service to maximize their profits.
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As explored in class, the communications styles of Bill Gates
and Steve Jobs are strikingly different. What effect does this have
on their respective companies, from day to day operations to long
term
The contrasting communication styles of Bill Gates and Steve Jobs have significant effects on their respective companies, influencing day-to-day operations as well as long-term outcomes. These differences can impact organizational culture, decision-making processes, innovation, and relationships with employees and stakeholders.
Bill Gates and Steve Jobs, two iconic figures in the technology industry, had distinct communication styles that shaped their companies in different ways. Gates was known for his analytical and systematic approach, emphasizing collaboration and teamwork. His communication style fostered a culture of inclusivity, open dialogue, and structured decision-making within Microsoft. This approach allowed for efficient day-to-day operations, streamlined processes, and a focus on long-term strategic goals.
In contrast, Steve Jobs had a charismatic and visionary communication style. He was known for his passion, attention to detail, and ability to inspire others. Jobs' communication style influenced Apple's organizational culture, emphasizing innovation, design excellence, and a strong brand identity. His persuasive communication style played a significant role in product launches, marketing campaigns, and cultivating a sense of excitement and loyalty among employees and customers.
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