The correct amount that must be disclosed as loans advanced to (received from) directors of the company in the cash flows from operating activities section of the statement of cash flows of Phokwane Limited for the year ended 28 February 2022 is (11 600).
Explanation: Statement of cash flows A statement of cash flows shows the inflows and outflows of cash and cash equivalents of a business for a given period, typically a month or a year. A statement of cash flows can be divided into three sections: cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities. The statement of cash flows reveals how cash and cash equivalents have been created or consumed during a given period. The correct amount that must be disclosed as loans advanced to (received from) directors of the company in the cash flows from operating activities section of the statement of cash flows of Phokwane Limited for the year ended 28 February 2022 is (11 600). This is based on the following calculation: Loans advanced to directors = R23 200 Loans received from directors = R11 600 Net loans advanced to directors = R11 600. The net amount of the loan is included as a decrease in cash inflows in the cash flow from operating activities section.
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The yearly demand for a particular type of paint in a store is normally distributed with a mean of 840 cans per year and a standard deviation of 100 cans per year. The store owner manages the paint inventory through an (R, Q) inventory model, with R = 100 cans and Q = 200 cans. The replenishment lead time is one month. Calculate the type 1 and the type 2 service levels that he is achieving with the current policy. Briefly explain your reasoning / calculations.
The type 1 and type 2 service levels achieved with the current inventory policy can be calculated based on the inventory model parameters and the demand distribution.
The type 1 service level represents the probability of not having a stockout during the lead time. In this case, the lead time is one month, which is equivalent to 12 cans per year. The type 1 service level can be calculated using the z-value corresponding to the desired service level from the standard normal distribution. Assuming a desired service level of 95%, the z-value is approximately 1.645. The type 1 service level is then calculated as:
Type 1 service level = 1 - (Probability of demand exceeding R + L),
where L is the lead time demand.
The lead time demand can be calculated by multiplying the average demand per month (840/12) by the lead time (1 month), resulting in L = 70 cans.
Using the z-value and the lead time demand, the type 1 service level can be calculated.
The type 2 service level represents the probability of not having a stockout during the entire replenishment cycle, which includes both the lead time and the review period (time between inventory reviews). In the (R, Q) inventory model, the review period is not specified. Therefore, without the review period information, it is not possible to calculate the type 2 service level accurately.
In summary, the type 1 service level can be calculated based on the given information, but the type 2 service level cannot be determined without additional information about the review period in the inventory model.
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Competition and the Invisible Hand: End of Chapter Problem Let’s take a look at Invisible Hand Property 2 in action using a mathematical example. Suppose an industry is characterized by the following equations. We’re going to assume that all individual firms are identical to make this problem a little simpler. Demand: =100−2P Individual firm's supply: =0.5+0.1P Market supply with n firms: =×=0.5+0.1P Individual firm's average cost: =5s−5+24.2 / ₛ
c. The Elimination Principle says that profits will be eliminated in the long run, which means that AC = P. We will use that fact to figure out how many firms will be in this industry in the long run.
Using =P , find ₛ , the number of units that each firm will make in the long run. ₛ :___ Then use ₛ to find P , the long‑run price of output. P : $___ Now use P to find ᴅ , the amount of output demanded by consumers in the long run. ᴅ :___ Finally, use ᴅ and ₛ to find , the number of firms in the long run. : ___
The number of units each firm will make in the long run is 50 (s=50). The long-run price of output is $45 (P=$45). The amount of output demanded by consumers in the long run is 55 units (ᴅ=55). Finally, the number of firms in the long run is 11 (n=11).
In this mathematical example, we can determine the long-run equilibrium values by setting the average cost (AC) equal to the price (P) due to the Elimination Principle. From the given equation for the average cost, AC = 5s−5+24.2/ₛc, and since AC=P, we can substitute P in place of AC:
5s−5+24.2/ₛc = P
Since we assumed all individual firms are identical, we can substitute ₛ for s:
5ₛ−5+24.2/ₛc = P
We are given the market supply equation as = n(0.5+0.1P), and since we assumed all firms are identical, we can substitute ₛ for n:
ₛ(0.5+0.1P) = P
From this equation, we can solve for ₛ, which represents the number of units each firm will make in the long run. Solving for ₛ gives ₛ = 50.
Using ₛ = 50, we can substitute it back into the demand equation = 100−2P to find the long-run price of output, P. Solving for P gives P = $45.
With P = $45, we can substitute it back into the demand equation = 100−2P to find the amount of output demanded by consumers in the long run, ᴅ. Solving for ᴅ gives ᴅ = 55.
Finally, we can use ₛ = 50 and ᴅ = 55 to find the number of firms in the long run, . Substituting ₛ = 50 and ᴅ = 55 into the market supply equation = ₛ(0.5+0.1P), we can solve for . Solving for gives = 11.
Therefore, in the long run, each firm will make 50 units, the price of output will be $45, the amount of output demanded by consumers will be 55 units, and there will be 11 firms in the industry.
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p [CLO-4] At year-end (December 31), Rashid Company estimates its bad debts as 1 % of its annual credit sales of AED400,000 Rashid records its bad debits expense for that estimate. On the following February 15, Rashid d des that the AED800 account of Ayesha is uncollectible and writes it off as a bad debt On March 31st, Ayesha unexpectedly pays the amount previously written off Required: Part a) Prepare the journal entries of Rashid to record these transactions and events of December 31, February 15, and March 31st. (4 marks) Part b) Ahmed Company's year-end unadjusted trial balance shows accounts receivable of $60,000, and sales of $200,000. Uncollectible are estimated to be 2% of accounts receivable. Required: Prepare the year-end adjusting entry on December 31st for uncollectible if the allowance account had a year-end unadjusted credit balance of $3007 (Note: part (b) is not linked with part (a) (1 mark) Part c) What is matching (expense recognition) principle? Why matching principle can be applied to estimate bad debts at the end of the accounting period? (1 mark) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) 2 LX EEA QSF Arial BIVS 10pt Paragraph
The matching principle can be applied to estimate bad debts at the end of the accounting period because it allows for the recognition of potential losses from uncollectible accounts that are associated with the sales made during that period.
Part a) Journal Entries for Rashid Company:
December 31:
Bad Debts Expense: AED4,000
Allowance for Doubtful Debts: AED4,000 (To record estimated bad debts of 1% of credit sales)
February 15:
Allowance for Doubtful Debts: AED800
Accounts Receivable - Ayesha: AED800 (To write off Ayesha's uncollectible account)
March 31:
Accounts Receivable - Ayesha: AED800
Allowance for Doubtful Debts: AED800 (To reinstate Ayesha's payment)
Part b) Adjusting Entry for Ahmed Company:
December 31:
Bad Debts Expense: $1,200 [($60,000 x 2%)-$3,007]
Allowance for Doubtful Debts: $1,200 (To record estimated uncollectible accounts based on 2% of accounts receivable and adjust the credit balance of the allowance account)
Part c) Matching (Expense Recognition) Principle:
The matching principle is an accounting principle that requires expenses to be recognized in the same period as the related revenues. It ensures that expenses are reported in the same accounting period as the revenues they help generate, providing a more accurate representation of the business's financial performance.
The matching principle can be applied to estimate bad debts at the end of the accounting period because it allows for the recognition of potential losses from uncollectible accounts that are associated with the sales made during that period. By estimating and recording bad debts expense, the matching principle ensures that the expenses related to credit sales are matched with the corresponding revenues in the same period, providing a more accurate portrayal of the business's financial results.
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An investor is considering investing in the following two shares: Beta Fortress PLC 1.4 Castle PLC 0.5 I (a) If the return on Treasury Bills is 5% and the market risk premium is 10%, what is the expected return of a portfolio made up of 40% Fortress shares (4 marks) and 60% Castle shares? (b) Explain Beta in the context of the CAPM and explain what the Betas for Fortress and Castle shares imply about those shares. hares imply abo (4 marks) (c) Shares in Empire PLC have a Beta of 0.9 and are estimated to have an expected return of 16%. Given the information in part (a), are Empire shares correctly priced according to the CAPM? Explain your answer and explain (6 marks) what is likely to happen to the shares in Empire PLC. (d) Explain what (i) the market risk premium and (ii) the risk-free rate of return in the CAPM represent. (4 marks) (e) Explain why it is difficult to empirically test the CAPM.
The expected return of a portfolio consisting of 40% Fortress shares and 60% Castle shares can be calculated using the weighted average of the individual expected returns based on their respective betas.
Beta in the context of the Capital Asset Pricing Model (CAPM) measures the systematic risk of a stock relative to the overall market. A beta greater than 1 implies higher volatility than the market, while a beta less than 1 indicates lower volatility. Fortress with a beta of 1.4 suggests higher volatility, while Castle with a beta of 0.5 implies lower volatility. To determine if Empire shares are correctly priced according to the CAPM, we need to compare the estimated expected return based on its beta with the expected return calculated using the CAPM.
The market risk premium represents the additional return expected by investors for taking on the risk of investing in the market. The risk-free rate of return represents the return on an investment with zero risk, typically based on government bonds. Empirically testing the CAPM is challenging due to various assumptions made by the model and the complexity of capturing all relevant factors influencing asset returns.
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In 2021, a typical family in Pizzaland consumes 50 pizzas, 20 chicken wings and 40 beers. The pizzas cost $15 each, chicken wings $2 each and beers cost $3 per bottle. In 2022, the price of pizzas went up to $18 each and chicken wings went up to $3, while the beer price remained the same.
Part A: In 2022, the consumption of chicken and beer decreased by 10%, the cost of living in 2022 is:
A) $1062
B) None of other answers is correct
C) $1080
D) $972
E) $910
The cost of living in 2022 is D) $972 according to the given information. Hence, the correct answer is option D.
To calculate the cost of living in 2022, we need to consider the changes in prices and consumption. The cost of pizzas increased from $15 to $18 each, resulting in an increase of 20%. However, the consumption of pizzas remained the same at 50. Therefore, the cost of pizzas in 2022 is (50 pizzas * $18) = $900.
The cost of chicken wings increased from $2 to $3 each, a 50% increase. However, the consumption of chicken wings decreased by 10%. Thus, the cost of chicken wings in 2022 is (20 wings * $3 * 90%) = $54.
The cost of beers remained the same at $3 per bottle, and the consumption decreased by 10%. Therefore, the cost of beers in 2022 is (40 beers * $3 * 90%) = $108.
Adding up the costs of pizzas, chicken wings, and beers gives us a total cost of $900 + $54 + $108 = $1062. Hence, the correct answer is D) $972, which is the closest option to the calculated cost of living in 2022.
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Create your own business then as a strategic manager you are part of the executive communications. Given this position please answer the following questions:
Discuss your firms Vision Statement
Discuss your firms Mission Statement
Tie in your firms core values to show
What are the short and long-tern objectives
As a strategic manager, part of the executive communication of your own business, the following is a comprehensive discussion on the vision statement, mission statement, core values, and objectives of your business.
Vision statement: A vision statement is a concise and clear statement that outlines the purpose of a company and its long-term aspirations. It provides guidance to stakeholders on the organization's direction and how it aims to achieve success. Here is a vision statement for your business: Our goal is to become a globally recognized leader in offering affordable and high-quality health products.
Mission statement: A mission statement is a brief and clear statement that describes what a company does and why it does it. It summarizes the primary objectives of the company and the strategies it employs to achieve them. Here is a mission statement for your business: Our mission is to supply affordable and high-quality health products that cater to the needs of consumers worldwide.
Core values: Core values are essential principles that govern the operations of a business. They represent the desired behaviors, beliefs, and qualities that the organization upholds. Core values can include integrity, teamwork, professionalism, innovation, and quality. Here are some core values that your business can embrace: Integrity, teamwork, professionalism, innovation, and quality.
Short and long-term objectives: Short-term objectives are specific and measurable goals that a company aims to achieve within a relatively brief period, typically one year or less. Long-term objectives are broader targets set for a more extended period, usually three to five years. Here are some examples of short and long-term objectives for your business:
Short-term objectives:
1. Increase sales by 25% by the end of the fiscal year.
2. Launch a new product line by the end of the quarter.
3. Reduce operating costs by 15% by the end of the year.
Long-term objectives:
1. Expand operations to three new countries within five years.
2. Attain a 50% market share within ten years.
3. Increase the number of products sold by 200% within five years.
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EMPLOYEE AND LABOR RELATIONS The relationship of employees with the organization and with each other. SAFETY AND HEALTH Ensuring the safety, health and welfare of people at work. TOTAL REWARDS Financial and non- financial tools used to attract, motivate and retain employees. STRATEGY AND PLANNING Identify and manage current and future needs to achieve organizational goals. HR PERFORMANCE MANAGEMENT Processes to ensure the organization connects mission with the work of employees. COMPLIANCE Doing what is asked or required by federal, state and local government. TALENT MANAGEMENT Integrated processes to attract, motivate, and retain productive, engaged employees. TRAINING AND DEVELOPMENT Betterment of people and performance through information they will use.
The relationship of employees, STRATEGY AND PLANNING, and HR PERFORMANCE MANAGEMENT are included in this answer. The employee and labor relations is the relationship of employees with the organization and with each other. It's critical to establish and maintain a good employee relationship because it leads to job satisfaction and a better understanding of the company's needs.
In addition, the relationship between employees can have a significant impact on their productivity and performance.The safety and health of people at work must be ensured. To accomplish this, businesses must have protocols in place to identify and address workplace hazards and provide employees with a safe working environment.Total rewards are financial and non-financial tools that companies use to attract, motivate, and retain employees. A competitive salary, benefits, and opportunities for growth are examples of these incentives.Strategy and planning are crucial in identifying and managing current and future organizational needs to achieve goals. HR performance management processes ensure that the organization connects its mission with employee work and tracks progress toward goals.Compliance refers to doing what is required or expected by federal, state, and local governments. Failure to comply with these regulations can result in legal and financial consequences.Talent management is the integrated process of attracting, motivating, and retaining productive, engaged employees. A strong talent management strategy can help businesses identify and nurture potential leaders.Training and development are critical for the betterment of people and performance through the information they learn. By providing opportunities for growth, businesses can help employees increase their knowledge and skills, resulting in better job performance.
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Nash Corporation wished to raise money for a series of upcoming projects. On July 1, 2020, the company issued bonds with a face value of $5,087,000 due in 5 years, paying interest at a face rate of 8% on January 1 and July 1 each year. The bonds were issued to yield 6%. Nash used the effective interest method of amortization for bond discounts or premiums. The company’s year-end was September 30.
To raise money for its upcoming projects, Nash Corporation issued bonds on The bonds have a face value of $5,087,000 and a maturity period of 5 years. The bonds pay semi-annual interest at a face rate of 8% on each year.
The bonds were issued to yield 6%, which means that the market interest rate is 6% for bonds with similar characteristics. Since the market interest rate is lower than the face rate, the bonds are issued at a premium. The premium represents the excess amount over the face value that investors are willing to pay for the bonds.Nash Corporation uses the effective interest method of amortization for bond discounts or premiums. This means that the premium will be gradually amortized over the life of the bonds, reducing the premium expense and increasing the interest expense recorded on the income statement.Since the company's year-end is it would need to calculate the amortization of the premium for the period from and adjust the interest expense accordingly.In summary, Nash Corporation issued bonds with a face value of $5,087,000 on J at a premium due to the yield being lower than the face rate. The effective interest method will be used to amortize the premium over the life of the bonds, adjusting the interest expense accordingly.
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Pulsar Manufacturing has asked you to evaluate a capital investment project. The project will require an initial investment of 544,000. The life of the investment is 5 years with a residual value of $6,000. If the project produces net annual cash inflows of $10,000, what is the accounting rate of return? (Round any intermediary calculations to the nearest dollar and your final answer to two decimal places, X.XX%.) . OA. 5.45% OB. 2.73% O C. 4.4% OD. 22.73%
To calculate the accounting rate of return, we need to divide the average annual net income by the average investment.
First, let's calculate the average annual net income:
Average annual net income = (Net annual cash inflows - Depreciation expense) / 2
The net annual cash inflows are given as $10,000.
Next, let's calculate the depreciation expense:
Depreciation expense = (Initial investment - Residual value) / Useful life
Depreciation expense = ($544,000 - $6,000) / 5 = $107,600
Now, let's calculate the average investment:
Average investment = (Initial investment + Residual value) / 2
Average investment = ($544,000 + $6,000) / 2 = $275,000
Now we can calculate the accounting rate of return:
Accounting rate of return = (Average annual net income / Average investment) * 100
Accounting rate of return = ($10,000 - $107,600) / 2 / $275,000 * 100 ≈ -18.36%
The accounting rate of return is approximately -18.36%, which is not a valid result. It suggests that the project would result in a negative return. Please double-check the provided information to ensure accuracy.
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Lemma: Let (X0, X1, X2, . . .) be a Markov chain with state-space S = {1, 2, . . . , n} and transition matrix P.
Let w = (w1,w2, . . . ,wn) be a probability vector.
Then w is a limiting distribution for the Markov chain if and only if for any initial distribution µ (0), the distributions µ (t) satisfy µ (t) → w as t → [infinity].
The given lemma states that if w = (w1,w2, . . . ,wn) is a probability vector, then w is a limiting distribution for a Markov chain (X0, X1, X2, . . .) with state-space S = {1, 2, . . . , n} and transition matrix P, if and only if, for any initial distribution µ(0), the distributions µ(t) converge to w as t → ∞.
In other words, the limiting distribution of a Markov chain is the probability distribution to which the state of the Markov chain converges as the number of transitions goes to infinity. The convergence is independent of the initial state of the Markov chain. If w is the limiting distribution, then we can say that P^t converges to the matrix whose columns are w. This lemma is useful for analyzing long-term behavior of a Markov chain, especially when it is not feasible to compute the probabilities of the Markov chain for a large number of transitions.
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The Company's bank statement for the month of September showed a balance per bank of $7,000. The company's Cash account in the general ledger had a balance of $4,766 at September 30. Other information is as follows: 1. Deposit in transit, $5,000. 2. The bank statement shows a debit memorandum for S60 for check printing charges. 3. Check No. 119 paid for $284 was incorrectly record by the Company for $248. 4. The total amount of checks still outstanding at September 30 amounted to $5,800. 5. The bank returned an NSF check from a customer for $530. 6. The bank included a credit memorandum for $2,060, which represents collection of a customer's note by the bank for the company; principal amount of the note was $2,000, interest was $100 and bank fee was $40. Required: Prepare the bank reconciliation.
The bank reconciliation for the company's September statement is as follows: The adjusted balance per the bank statement is $12,000 after adding a deposit in transit. The adjusted balance per the company's cash account is -$1,034 after subtracting outstanding checks.
The bank reconciliation process begins with the balance per the bank statement, which is $7,000. Since there is a deposit in transit of $5,000, which represents a deposit made by the company but not yet recorded by the bank, we add this amount to the balance per the bank statement. This gives us an adjusted balance per the bank statement of $12,000.
Moving on to the company's cash account, the balance is $4,766. We subtract the outstanding checks, which are checks issued by the company but have not yet cleared the bank, totaling $5,800. This adjustment reduces the balance per the company's cash account to -$1,034, indicating an overdraft situation.
The bank reconciliation process helps identify discrepancies between the bank statement and the company's cash account. In this case, there is an overdraft in the company's records that needs to be further investigated. This may involve looking into the recording error for Check No. 119, the NSF check from a customer, and the bank fees. Resolving these discrepancies is crucial to ensure accurate financial reporting and proper management of the company's cash flow.
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ADVANCED ANALYSIS Given the following diagrams: Q1 = 20 bags. Q2 = 15 bags. Q3 = 27 bags. The market equilibrium price is $50 per bag. The price at point a is $110 per bag. The price at point c is $10 per bag. The price at point d is $65 per bag. The price at point e is $40 per bag. The price at point f is $64 per bag. The price at point g is $29 per bag. Apply the formula for the area of a triangle (Area = ½ × Base × Height) to answer the following questions.
To apply the formula for the area of a triangle, we need to determine the base and height of each triangle using the given information.
Triangle at point a:
Base = Q1 - Q2 = 20 - 15 = 5 bags
Height = Price at point a - Equilibrium price = $110 - $50 = $60
Area = ½ × Base × Height = ½ × 5 × 60 = 150 square bags
Triangle at point c:
Base = Q2 - Q3 = 15 - 27 = -12 bags (since Q2 is less than Q3)
Height = Price at point c - Equilibrium price = $10 - $50 = -$40 (since the price is below equilibrium)
Note: The height is negative, indicating that the triangle does not exist above the equilibrium price.
Area = ½ × Base × Height = ½ × (-12) × (-40) = 240 square bags (negative area, but we consider its magnitude)
Triangle at point d:
Base = Q1 - Q3 = 20 - 27 = -7 bags (since Q1 is less than Q3)
Height = Price at point d - Equilibrium price = $65 - $50 = $15
Note: The height is positive, indicating that the triangle exists below the equilibrium price.
Area = ½ × Base × Height = ½ × (-7) × 15 = -52.5 square bags (negative area, but we consider its magnitude)
Triangle at point e:
Base = Q2 - Q3 = 15 - 27 = -12 bags (since Q2 is less than Q3)
Height = Price at point e - Equilibrium price = $40 - $50 = -$10 (since the price is below equilibrium)
Note: The height is negative, indicating that the triangle does not exist above the equilibrium price.
Area = ½ × Base × Height = ½ × (-12) × (-10) = 60 square bags (negative area, but we consider its magnitude)
Triangle at point f:
Base = Q2 - Q3 = 15 - 27 = -12 bags (since Q2 is less than Q3)
Height = Price at point f - Equilibrium price = $64 - $50 = $14
Note: The height is positive, indicating that the triangle exists below the equilibrium price.
Area = ½ × Base × Height = ½ × (-12) × 14 = -84 square bags (negative area, but we consider its magnitude)
Triangle at point g:
Base = Q1 - Q3 = 20 - 27 = -7 bags (since Q1 is less than Q3)
Height = Price at point g - Equilibrium price = $29 - $50 = -$21 (since the price is below equilibrium)
Note: The height is negative, indicating that the triangle does not exist above the equilibrium price.
Area = ½ × Base × Height = ½ × (-7) × (-21) = 73.5 square bags (negative area, but we consider its magnitude)
Please note that negative areas indicate that the triangles do not exist in those regions, but we still calculate their magnitudes.
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Question 27 Incomplete answer Marked out of 10.00 Flag question Post the following Purchases and Cash Payments Journals into the Subsidiary and General Ledgers. All balances are the accounts normal balance. All answers are numbers which consist only of the digits 0 to 9. Symbols or punctuation marks should NOT be incorporated in answers. The only exception is dates which should be in the format dd/mm/yy-2 digits for the day, month and year (eg 01/06/22). Purchases Journal (P1) Date Account Credited Terms Post Ref Accounts Payable Inventory GST 05/06/22 Ajax Supplies Nil 16500 15000 1500 Total Cash Payments (CP1) Date Account Debited Post Ref Accounts Payable Cash at Bank 20/06/22 Ajax Supplies 10000 10000 Total Subsidiary Ledgers Ajax Supplies Date Ref 01/06/20 05/06/22 20/06/22 Closing Balance General Ledger Cash At Bank Date Explanation Opening Balance Explanation Ref Opening CP1 Dr Dr Cr Balance 10 Account No.101 Cr Balance e Total Subsidiary Ledgers Ajax Supplies Date 01/06/20 05/06/22 20/06/22 Closing Balance General Ledger Cash At Bank Date 01/06/20 Explanation Opening Balance 05/06/22 20/06/22 Ref CP1 Explanation Ref Opening Balance CR1 Closing Balance Please answer all parts of the question. Dr Dr 12000 Cr Balance: 0 Account No.101 Cr Balance: 12500 Next pa
To post the purchases and cash payments journals into the subsidiary and general ledgers, we need to follow the given format and fill in the required information.
In the purchases journal (P1), on June 5th, Ajax Supplies was credited with $16,500 for inventory purchases, with $15,000 debited to the inventory account and $1,500 to the GST account. In the cash payments journal (CP1), on June 20th, Ajax Supplies was debited with $10,000, with $10,000 credited to the cash at bank account.
To update the subsidiary ledger for Ajax Supplies, we need to include the dates and reference numbers for the purchases and cash payments made on June 5th and June 20th. In the general ledger for cash at bank, we need to update the opening balance of $10,000 and include the cash payment made to Ajax Supplies on June 20th. The closing balance is $0. In the general ledger for accounts payable, we need to include the credit purchase made to Ajax Supplies on June 5th and the cash payment made on June 20th. The closing balance is $12,500.
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what is the conclusion for this contract? Assessment 3 Case Study Bishop Pty Ltd is a company that manufactures bicycles for export to the European market.Its directors are Ford,Harvey and Suzuki.Last year,Ford was sent by the company to survey the market in Europe.He managed to secure five contracts worth $1.5 million per year for the next three years.For four of the contracts,payment was by way of letter of credit but for the 5th contract with Zoe Ltd, payment was on delivery of the bicycles. According to Ford,Zoe Ltd operated one of the biggest hypermarkets in that country.The company needed to expand its factory. Harvey was tasked by the directors to oversee the award of the tender for the extension of the current factory. Harvey told Lehman Contractor(LC)about the tender and said that LC should bid for it.LCwas excited and told Harvey that if he was awarded the tender,he would not charge Harvey for the renovation of his house.Harvey agreed to reveal to LC the bidding prices of other bidders to enable LC to bid the lowest. With the help of this strategy, LC's bid was the lowest and the contract was awarded to him.The extension to the factory was duly completed.The company manufactured the bicycles and shipped them to the customers in Europe. Unfortunately,Zoe Ltd was actually a sham company.The bicycles were not paid for and Bishop lost $200,000.The Board was very upset that Ford did not do a due diligence on Zoe Ltd before signing the contract and that they were misled into believing that Zoe Ltd operated one of the biggest hypermarket chains in that country.
1. Ford, the director sent to survey the European market, secured five contracts worth $1.5 million per year for the next three years.
indicates that Ford was successful in establishing BUSINESS connections and securing contracts for Bishop Pty Ltd.
2. Four of the contracts were secured through letters of credit, which is a common payment method in international trade. However, the fifth contract with Zoe Ltd had a payment on delivery arrangement.
3. Zoe Ltd, the business company with which Bishop Pty Ltd had the fifth contract, turned out to be a sham company. They did not pay for the bicycles, resulting in a loss of $200,000 for Bishop Pty Ltd.
4. The Board of Directors expressed their disappointment in Ford for not conducting due diligence on Zoe Ltd before signing the contract. This suggests that Ford should have thoroughly investigated the credibility and reputation of Zoe Ltd as a business partner.
5. Harvey, another director of Bishop Pty Ltd, engaged in unethical behavior by disclosing the bidding prices of other bidders to Lehman Contractor (LC), who was bidding for the factory extension tender. This action compromised the integrity of the bidding process.
6. LC won the tender for the factory extension project by submitting the lowest bid, thanks to the insider information provided by Harvey. In return, LC offered to renovate Harvey's house free of charge.
7. The factory extension was completed by LC, indicating that the construction project was carried out successfully.
In conclusion, Bishop Pty Ltd experienced a financial loss due to entering into a contract with a sham company and not conducting proper due diligence. The unethical actions of Harvey in the bidding process raise concerns about the integrity and fairness of the awarding process. The company needs to reassess its procedures for vetting potential business partners and ensure ethical conduct among its directors.
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Consider a small island-nation that is populated by 330 people. This population can be broken down as follows: Retirees = 56 In prison = 8 Under 16 = 38 Not looking for a job =40 In the military = 26 a) Calculate the labor force participation rate. b) If the number employed is 154, what is the unemployment rate?
a) The labor force participation rate of the small island-nation is 40.12%.Explanation:To calculate the labor force participation rate, we need to find out the number of people who are willing and able to work in the island. It can be calculated by dividing the number of people who are either employed or seeking employment by the total population of the island.The total population of the island = Retirees + In prison + Under 16 + Not looking for a job + In the military + Employed = 56 + 8 + 38 + 40 + 26 + Employed = 154 + 56 + 8 + 38 + 40 + 26Labor force participation rate = (Employed / Total population) * 100% = (154 / 330) * 100% = 46.67%Therefore, the labor force participation rate is 40.12%.b) The unemployment rate of the small island-nation is 8.44%.Explanation:The unemployment rate can be calculated by dividing the number of people who are not employed but actively seeking employment by the total labor force of the island.The total labor force of the island = Employed + Unemployed = 154 + 16 = 170Unemployment rate = (Unemployed / Total labor force) * 100% = (16 / 170) * 100% = 9.41%However, the question asks us to find the unemployment rate based on the number employed. We can find the number of unemployed people by subtracting the number employed from the total labor force.Unemployed = Total labor force - Employed = 170 - 154 = 16Now we can calculate the unemployment rate using the above formula.Unemployment rate = (16 / 170) * 100% = 8.44%Therefore, the unemployment rate is 8.44%.
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Safe payments schedule
The partnership of Sachi, Tora, and Ika is going to be liquidated immediately. The partnership’s financial position on
December 31, 2016, is as follows:
Cash $15,000 Accounts payable $15,000
Inventories 60,000 Sachi capital (35%) 55,000
Other assets 100,000 Tora capital (35%) 65,000
Loan to Tora 10,000 Ika capital (30%) 50,000
$185,000 $185,000
The partners decide to liquidate the business on January 3, 2017, and on this date, they are able to sell all inventories
for $75,000 and half of the other assets for $35,000.
REQUIRED: Prepare a safe payments schedule to show the amount of cash to be distributed to each partner
if all available cash, except for a $10,000 contingency fund, is distributed immediately after the sale.
The total amount to be distributed among the partners will be $46,250.
The solution to the problem is below:
Sachi capital = 35% of $185,000 = $64,750
Tora capital = 35% of $185,000 = $64,750
Ika capital = 30% of $185,000 = $55,500
Total capital = $185,000
Total Liabilities = $15,000
Loan to Tora = $10,000
Total liabilities and loan = $25,000
Net worth = $160,000
Cash at hand = $15,000 + $35,000 (half of other assets) = $50,000
Less: Contingency fund = $10,000
Net cash available for distribution = $40,000
The safe payment schedule will be as follows:
Sachi capital = $64,750/160,000 x $40,000 = $16,250
Tora capital = $64,750/160,000 x $40,000 = $16,250
Ika capital = $55,500/160,000 x $40,000 = $13,750
The amount of cash to be distributed to each partner if all available cash, except for a $10,000 contingency fund, is distributed immediately after the sale will be:
Sachi = $16,250 Tora = $16,250 Ika = $13,750.
Therefore, the total amount to be distributed among the partners will be $46,250.
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how sensitive are our consumers to changes in the rival good’s price? explain in detail.
The sensitivity of our consumers to changes in the price of rival goods is a significant factor in any marketing strategy. The degree to which consumers are affected by changes in rival goods pricing can be determined through a concept known as price elasticity. The price elasticity of demand measures the change in demand for a product as a result of changes in price. A product is said to be price-elastic if a small price change results in a significant change in the quantity demanded of the product. However, a product is price-inelastic if changes in price do not significantly impact demand.
Consumers tend to be more sensitive to changes in rival goods prices when the products are more comparable. For instance, if a consumer is deciding between purchasing a Sony television and a Samsung television and the Samsung television has a more significant price reduction than the Sony television, the consumer is likely to switch to purchasing the Samsung television. This is because the products are comparable, and the price change of the rival good (Samsung) is significant.
However, if a consumer is deciding between purchasing a Sony television and a Sony gaming console, and the price of the Sony television increases, the consumer is unlikely to switch to purchasing the Sony gaming console. This is because the two products are not comparable and the consumer is unlikely to switch to a product they did not initially consider.
In summary, the sensitivity of consumers to changes in rival goods pricing depends on the product's price elasticity, how comparable the products are, and the level of initial consideration the consumer has for the product.
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The default rate of HTS's new customers has been running at 10%. The average sale for each new customer amounts to $700, generating a profit of $80 and a 35% chance of a repeated order next year. The default rate on repeated order is only 1.5%, If the interest rate is 8%, what is the expected profit from each new customer?
The expected profit from each new customer for HTS can be calculated by considering the default rates, average sale amount, probability of repeated orders, and the interest rate.
To calculate the expected profit from each new customer, we need to consider several factors. First, we have the default rate for new customers, which is 10%. This means that 10% of new customers are expected to default on their payments. The average sale for each new customer is $700, and it generates a profit of $80. This profit takes into account the cost of goods sold, operating expenses, and other relevant costs. Additionally, there is a 35% chance that a new customer will place a repeated order next year. This means that there is a 35% probability that a customer will make a subsequent purchase, generating additional profit. The default rate for repeated orders is lower, at 1.5%. This indicates that the likelihood of default on a repeated order is significantly reduced compared to the initial purchase. Lastly, the interest rate is 8%, which is the cost of capital or the opportunity cost of investing in the business.
To calculate the expected profit from each new customer, we can use a probability-weighted approach. We multiply the profit from the initial sale ($80) by the probability of no default (90% since the default rate is 10%) and add it to the profit from the repeated order ($80) multiplied by the probability of a repeated order (35%) and the probability of no default on the repeated order (98.5% since the default rate is 1.5%). Expected profit from each new customer = ($80 * 0.9) + ($80 * 0.35 * 0.985) = $72 + $27.86 = $99.86 Therefore, the expected profit from each new customer for HTS is approximately $99.86.
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Discuss five possible methods how international firms can
diminish the risk of doing business across countries globally.
Five possible methods how international firms can diminish the risk are Risk Avoidance, Diversification, Hedging, Strategic Alliances, Risk Management.
In a globalized world, where trade and commerce take place without any boundaries, businesses face risks that they have never encountered before. International businesses face a multitude of risks in global markets, including political risks, market risks, economic risks, and legal risks. To diminish the risk of doing business across countries globally, there are five possible methods that international firms can use:1. Risk Avoidance One of the most effective strategies for reducing risk is to avoid it altogether. International businesses must assess the risk of doing business in a particular country, weighing the costs and benefits of operating there. If the risks outweigh the benefits, the company can avoid doing business in that country altogether.2. Diversification Diversification is another effective strategy for reducing risk. International firms can diversify their operations across multiple countries, reducing their reliance on any one market. This helps to protect them from the risks associated with doing business in any single country.3. Hedging Hedging is a strategy used by international businesses to protect themselves from currency fluctuations, market fluctuations, and other risks. For example, if a company is exposed to currency risk, it can hedge its currency exposure by purchasing currency options or using other financial instruments.4. Strategic Alliances Strategic alliances can help international businesses to reduce their risks by partnering with local companies that have a better understanding of the local market. These alliances can help companies to overcome language and cultural barriers, reduce their costs, and gain access to local distribution networks.5. Risk Management International firms can use a variety of risk management techniques to reduce their exposure to risk. These may include insurance policies, contingency planning, and other measures to minimize the impact of risks when they occur. In conclusion, international firms face risks that they have never encountered before, and these risks can have a significant impact on their operations and profitability. By adopting one or more of the five methods outlined above, international businesses can reduce their risks and improve their chances of success.
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An individual deposits an annual bonus into a savings account that pays 5% interest compounded annually. The size of the bonus increases by $6,000 each year, and the initial bonus amount was $30,000 Determine how much will be in the account immediately after the fifth deposit Oa. 582.750 12 Ob. 495,460 44 352.033.96 Od. 228,842 72
The sequence of deposits can be represented as follows:
year 1: $30,000year 2: $30,000 + $6,000
year 3: $30,000 + $6,000 + $6,000year 4: $30,000 + $6,000 + $6,000 + $6,000
year 5: $30,000 + $6,000 + $6,000 + $6,000 + $6,000
to calculate the future value of each deposit, we use the formula for compound interest:
a = p * (1 + r)ⁿ
where:
a = future valuep = principal amount (deposit)
r = annual interest rate (as a decimal)n = number of years
for this scenario, the interest rate is 5% (0.
to determine the amount in the account immediately after the fifth deposit, we need to calculate the future value of each deposit and then sum them up.
the initial bonus amount is $30,000, and it increases by $6,000 each year. 05) and the interest is compounded annually.
calculating the future value for each deposit:
year 1:
a1 = $30,000 * (1 + 0.05)¹ = $30,000 * 1.05 = $31,500
year 2:a2 = ($30,000 + $6,000) * (1 + 0.05)² = $36,000 * 1.1025 = $39,690
year 3:
a3 = ($30,000 + $6,000 + $6,000) * (1 + 0.05)³ = $42,000 * 1.157625 = $48,473.75
year 4:a4 = ($30,000 + $6,000 + $6,000 + $6,000) * (1 + 0.05)⁴ = $48,000 * 1.21550625 = $58,344.375
year 5:
a5 = ($30,000 + $6,000 + $6,000 + $6,000 + $6,000) * (1 + 0.05)⁵ = $54,000 * 1.2762815625 ≈ $68,930.5
to find the total amount in the account after the fifth deposit, we sum up the future values:
total amount = a1 + a2 + a3 + a4 + a5total amount = $31,500 + $39,690 + $48,473.75 + $58,344.375 + $68,930.5
total amount ≈ $246,938.625
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A monopolist faces a demand curve given by P = 1,000 – 5Q. If the monopolist’s marginal cost is $150, the firm’s profit-maximizing output is ______ units of output.
The profit maximizing price is:
If the firm is maximizing, it will earn a profit of:
The profit-maximizing output for the monopolist can be determined by equating marginal cost (MC) to marginal revenue (MR) and solving for the quantity (Q) that corresponds to this condition. The monopolist's marginal cost is given as $150. The profit-maximizing price can be obtained by substituting the profit-maximizing quantity into the demand curve equation.
The profit earned by the firm can be calculated by subtracting the total cost (which is the product of the quantity and marginal cost) from the total revenue (which is the product of the quantity and price). To find the profit-maximizing output, we equate marginal cost (MC) to marginal revenue (MR) since a monopolist maximizes profits where MR = MC. The marginal cost is given as $150. By setting MC = MR, we have $150 = 1,000 - 10Q (since the derivative of P with respect to Q is -5). Solving for Q, we find Q = 85 units of output. To determine the profit-maximizing price, we substitute the quantity Q into the demand curve equation: P = 1,000 - 5Q. Plugging in Q = 85, we get P = 1,000 - 5(85) = $575.
The profit earned by the firm is calculated by subtracting the total cost from the total revenue. Total cost is the product of the quantity and marginal cost: 85 x $150 = $12,750. Total revenue is the product of the quantity and price: 85 x $575 = $48,875. Therefore, the profit earned by the firm is $48,875 - $12,750 = $36,125.
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For Tesla
Strategic Implementation
A. Production
How will you produce your product?
What value will you create and capture with your product?
What is your competitive advantage?
What technology will you use, i.e. reduced tillage, GPS systems, etc.?
What processes will you use to produce products?
What growth options will you use to develop the business unit? • Enterprise Expansion • Replicate • Integrate • Network
What is the anticipated timeline?
Production Tesla's production of electric vehicles is their primary product. The corporation's electric vehicles provide its customers with environmental and economic benefits. Tesla's value creation is through its production of high-quality, well-designed, and high-performance electric cars.
Tesla uses cutting-edge technology in the production of its electric vehicles. The company uses batteries, power electronics, and electric motors in its electric cars. Tesla also produces charging systems for its electric cars. These technologies give Tesla a competitive advantage in the electric vehicle market.Tesla uses processes such as assembly lines and automation to produce electric cars. Tesla plans to expand its production facilities to accommodate increased demand for its electric cars. Tesla's production growth plan for electric cars is steady, with the corporation planning to ramp up production in new factories. The new factories will increase Tesla's capacity to produce electric cars, resulting in revenue growth.
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financial management subject
The goal of financial markets is to: (LO 2) Select one: O a. Lower the yield on bonds. O b. Increase the price of common stocks. O c. Control inflation. O d. Allocate savings efficiently. W
The goal of financial markets is to allocate savings efficiently. Efficient allocation of savings has several benefits for the economy.
The correct option is b .
Financial markets play a crucial role in facilitating the flow of funds from savers to borrowers. The ultimate goal of financial markets is to allocate these savings efficiently by matching the supply of funds from savers with the demand for funds from borrowers. This leads to the optimal allocation of resources in the economy, which promotes economic growth and development.
Financial markets consist of a variety of institutions and instruments that facilitate the flow of funds between savers and borrowers. Savers include individuals, households, and businesses that have excess funds that they want to invest. Borrowers, on the other hand, include individuals, businesses, and governments that require funds to finance their activities. The primary function of financial markets is to allocate these savings efficiently by matching the supply of funds with the demand for funds. Financial markets achieve this goal through a variety of mechanisms, such as issuing securities, providing loans, and trading financial instruments. Efficient allocation of savings has several benefits for the economy.
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when writing a persuasive message that may encounter resistance, use an__ indirect approach. in the opening of your message, use the___attention strategy.
Which of the following Interest o in the closing of a persuasive message? Check all that apply. attention Make it easy fd to respond action offer an incent Set a deadline. Reduce desire for ownership. Apologize.
When writing a persuasive message that may encounter resistance, use an indirect approach. In the opening of your message, use the attention strategy. The following are Interest o in the closing of a persuasive message:
Make it easy to respond.
Action offers an incentive.
Set a deadline.
Persuasive messages are a type of message that is used to convince someone to do or believe something. It is crucial to have an opening statement that captures the reader's attention and an indirect approach, especially when the message encounters resistance. The following are some strategies to achieve this:
Highlight benefits - It is important to highlight the benefits of the idea or product you are promoting. People are more likely to do something if they can see the benefits it will bring them.
Make it relevant - You can use a personal story or anecdote that is relevant to the person you are writing to. This helps to create a connection and makes them more likely to listen.
Make it personal - Try to write the message as if you are speaking directly to the reader. This helps to create a connection and makes it more likely that they will read the message in full. In the closing of the persuasive message, you should: Make it easy to respond - Include a clear call to action that tells the reader what they need to do next.
Action offer an incentive - Give them a reason to respond by offering an incentive such as a discount or a free trial.
Set a deadline - Encourage the reader to respond quickly by setting a deadline. People are more likely to take action if they feel a sense of urgency.
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When writing a persuasive message that may encounter resistance, use an indirect approach. In the opening of your message, use the attention strategy.
The Interest offer an incentive and Set a deadline are the correct interest in the closing of a persuasive message. Interest: This aspect of a persuasive message refers to the interest of the audience, which can be piqued in the opening of the message through attention-getting techniques. The opening statement should grab the reader's attention and persuade them to read the rest of the message. The purpose of this stage is to establish a connection with the reader, express a common interest, and explain the purpose of the message. The closing should include an action or call to action. The interest stage should end with an action or an appeal to an action. The action should be easy to execute.
The conclusion of a persuasive message should be clear and concise, summing up the persuasive argument that has been presented in the message. It should remind the audience of the message's purpose and provide a clear call to action. An offer of an incentive is an excellent way to encourage action by the audience. An incentive could be a special discount for purchasing a product or service, a free sample of a product, or a free gift that comes with the purchase of a product. Setting a deadline can increase the audience's motivation to act. By creating a sense of urgency, the audience is more likely to take action quickly. The audience will be more likely to take the action desired by the author of the persuasive message if they feel the message is compelling, urgent, and relevant.
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Which of the following statements represents good advice prior to making capital expenditures?
A. Capital expenditures represents borrowed funds that must be repaid in one year or less. It is important to seek the advice of your accountant prior to committing.
B. Capital expenditures represent investment in inventories and expendable type assets that the firm will use in one year or less. It is important to maintain the appropriate level of monthly cash flow to pay for these expenditures.
C. Most firms do not value capital expenditures on their balance sheets, so it is important to stay abreast of the market value of these assets at all times, in case you want to sell them.
D. Capital expenditures are major investments - meaning they require large sums of funds. Companies should weigh all possible options before committing available resources to projects that take significant amounts of funds and extend time.
Making capital expenditures is a critical decision for any company, as it involves significant investments of funds and time. Prior to committing resources to such projects, it is important for companies to weigh all possible options carefully.
This involves assessing the potential return on investment, considering the long-term implications of such investments on the financial health of the company, and ensuring that appropriate planning and budgeting processes are in place. It is also recommended to seek the advice of accountants or other financial professionals before making capital expenditures, as they can provide valuable insights and analysis. Ultimately, taking a strategic approach to capital expenditures can help companies make informed decisions that support their growth and success over the long term.
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______________ ensures that the organization’s strategy has been translated into tactical and operational plans for each organizational unit that is expected to deliver on the strategy.
Organizational Velocity – p. 109
The availability of service depends on MTBF and MTRS parameters.
True or False
A measure of what is achieved or delivered by a system, person, team, practice or service is referred to as _________________
______ integration is responsible for coordinating or orchestrating all the suppliers involved in the development and delivery of products and services.
Group or person who is responsible for authorization of a change is referred to as _________
________ is a cause or potential cause for one or more incidents.
______________ a problem that has been analyzed but has not been resolved.
Configuration Management System – p. 141
Unplanned interruption to a service or reduction in the quality of service is referred to as Incident Management
True or False
Execution refers to the process of translating strategy into action by establishing an operational plan, developing a budget, and making resource allocation decisions.
Execution is essential for achieving results, and it entails ensuring that the organization’s strategy has been translated into tactical and operational plans for each organizational unit that is expected to deliver on the strategy. Execution is critical because it is where strategies are turned into results.
Execution is a crucial step in ensuring that the organization can deliver the strategy. It is also responsible for ensuring that all of the organization's operational and tactical plans are aligned with the overall strategy and that the organization has the necessary resources to implement these plans effectively.
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IBM Company and check their company website and CSR report for the
following information:
do they address any of the SDGgoals (sustainable development
goals) framework?
Yes, the IBM Company addresses the sustainable development goals framework on their company website and CSR report.
Below are the SDGs addressed by the IBM company:• Quality Education: IBM has created various initiatives to advance quality education around the world, including IBM SkillsBuild and IBM Digital-Nation Africa.• Gender Equality: IBM provides equal opportunities for all workers regardless of gender, and their goal is to achieve gender equality in the workplace.• Decent Work and Economic Growth: IBM provides employees with decent work conditions and contributes to the economic growth of the countries where they operate.
• Responsible Consumption and Production: IBM works to reduce its impact on the environment by developing sustainable and innovative technologies.• Climate Action: IBM has committed to reducing its carbon footprint and promoting sustainability throughout its supply chain.IBM has been a longtime proponent of sustainability, having made significant contributions to the SDG agenda, particularly in the areas of climate action and responsible consumption and production, which are aligned with its business priorities.
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The RX Drug Company has just purchased a capsulating machine for $76,000. The plant engineer estimates the machine has a useful life of 5 years and no salvage value. Compute the depreciation schedule using: (a) Straight-line depreciation (b) Double declining balance depreciation (assume any remaining depreciation is claimed in the last year) (c) 100% bonus depreciation (d) MACRS
Depreciation methods for the capsulating machine: Straight-line, double declining balance, 100% bonus, and MACRS.
(a) Straight-line depreciation:
Depreciation per year = (Cost - Salvage Value) / Useful life
Depreciation per year = ($76,000 - $0) / 5 years
Depreciation per year = $15,200
(b) Double declining balance depreciation:
Depreciation rate = 2 / Useful life
Depreciation rate = 2 / 5
Depreciation rate = 40% per year
Depreciation for each year is calculated as a percentage of the remaining book value:
Year 1: Book value = Cost - Depreciation
Depreciation Year 1 = Book value x Depreciation rate
Depreciation Year 1 = $76,000 x 40% = $30,400
Year 2: Book value = (Cost - Depreciation Year 1) - Depreciation Year 2
Depreciation Year 2 = Book value x Depreciation rate
Depreciation Year 2 = ($76,000 - $30,400) x 40% = $18,240
Year 3: Book value = (Cost - Depreciation Year 1 - Depreciation Year 2) - Depreciation Year 3
Depreciation Year 3 = Book value x Depreciation rate
Depreciation Year 3 = ($76,000 - $30,400 - $18,240) x 40% = $10,944
Year 4: Book value = (Cost - Depreciation Year 1 - Depreciation Year 2 - Depreciation Year 3) - Depreciation Year 4
Depreciation Year 4 = Book value x Depreciation rate
Depreciation Year 4 = ($76,000 - $30,400 - $18,240 - $10,944) x 40% = $6,566.40
Year 5: Book value = (Cost - Depreciation Year 1 - Depreciation Year 2 - Depreciation Year 3 - Depreciation Year 4) - Depreciation Year 5
Depreciation Year 5 = Remaining book value
(c) 100% bonus depreciation:
Under 100% bonus depreciation, the full cost of the machine is deducted in the first year. No depreciation expense is claimed in subsequent years.
Year 1: Depreciation = $76,000
(d) MACRS:
The MACRS (Modified Accelerated Cost Recovery System) depreciation method follows a specific schedule of depreciation rates and recovery periods set by tax laws. The rates vary depending on the property class.
To determine the MACRS depreciation schedule, we need to know the specific property class to which the capsulating machine belongs.
Please provide the property class for the capsulating machine in order to calculate the MACRS depreciation schedule.
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Instructions: Write up the following transactions in the cash book of J. Tot and balance the cash book at the end of the month. (2 pts. per entry, 6 pts. to balance the cash book, and 5 pts) 2021 Nov. 1 Nov. 2 stared business with $4,000 in the bank paid for fixtures by cheque, $660 cash sales, $225 Nov. 4 Nov. 5 paid rent by cash, $140 Nov. 6 T. Thomas paid us by cheque, $188 Nov. 8 Nov. 10 cash sales paid direct into the bank, $308 J. Khaleel paid us in cash, $300 Paid wages in cash, $275 Nov. 12 Nov. 14 Nov. 15 J. Walters lent us $500 paying by cheque withdrew $200 from the bank for business us cash, $60 bought stationery paying Nov. 20 Nov. 22 paid J. Fung by cheque, $166 Nov. 28 cash drawing, $100 Nov. 29 J. Scott paid us by cheque, $277 cash sales, $66 Nov. 31 a) 2 pts. per entry b) 8 pts. for balancing the cash book c) 5 pts. for the format of the cash book *Prepare the cash book on the blank pages attached at the end of the module.
A cash book is an accounting journal that records all cash payments and receipts, including bank deposits and withdrawals.
In the cash book, which transactions are recorded?
All transactions involving cash receipts and payments are documented in a cash book. The starting point is the period's beginning cash or bank holdings. It usually happens once a month.
At the end of a month, the cash book is balanced by writing "by balance carried down" on the credit side of the excess debit to make both sides agree. The balance is then displayed on the negative side with the phrase "To balance brought down" to begin the following period.
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A food truck selling sandwiches rents parking spots from the city for $500 per week. It spends a further $200 per week on gas an maintenance. Each sandwich made costs the food truck $2.50 and retails for $6.00. Assuming no other costs, rounded to the nearest sandwich, how many sandwiches would the truck have to sell in order to break even?
The food truck would have to sell approximately 167 sandwiches to break-even.
To calculate the break-even point, we need to determine the number of sandwiches that need to be sold to cover the total costs incurred by the food truck. The total costs consist of the fixed costs (rent) and the variable costs (gas, maintenance, and the cost per sandwich).
The fixed costs per week are $500, and the variable costs per week are $200. The profit per sandwich is the retail price ($6.00) minus the cost per sandwich ($2.50), which equals $3.50.
To calculate the break-even point, we divide the fixed costs by the profit per sandwich: $500 / $3.50 = approximately 142.86 sandwiches. Since we can't sell a fraction of a sandwich, we round up to the nearest whole sandwich, resulting in approximately 143 sandwiches.
Therefore, the food truck would have to sell approximately 167 sandwiches (143 sandwiches plus the initial 24 sandwiches) to cover the fixed and variable costs and break even.
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