Answer:
North West South
Contribution margin $300,300 $499,000 $399,200
Controllable margin $139,700 $360,600 $209,900
Average operating assets $997,857 $1,567,826 $1,499,286
Minimum rate of return 13% 14% 9%
return on investment (ROI) = controllable margin / average operating assets
North's ROI = $139,700 / $997,857 = 14%
West's ROI = $360,600 / $1,567,826 = 23%
South's ROI = $209,900 / $1,499,286 = 14%
residual income = controllable margin - (average operating assets x minimum rate of return)
North's RI = $139,700 - ($997,857 x 13%) = $9,978.59
West's RI = $360,600 - ($1,567,826 x 14%) = $141,104.36
South's RI = $209,900 - ($1,499,286 x 9%) = $74,964.26
(1) If ROI is used to measure performance, which division or divisions will probably make the additional investment?
North and South divisions should probably make the additional investments since their current ROI is less than 16%
(2) If residual income is used to measure performance, which division or divisions will probably make the additional investment?
All the divisions since their minimum required rate of return is less than 16%.
The ROI of North, West and South are 14%, 23% and 14% respectively. North and south divisions need to make more investment as their ROI is less than 16%. All the division need to make investments.
What is ROI?Return on Investment is the performance measure to evaluate the earnings or profit earned from an investment.It is the ration between the net profit/loss to the initial investment made.
North West South
Given:
Contribution margin= $300,300 $499,000 $399,200
Controllable margin= $139,700 $360,600 $209,900
Average operating assets= $997,857 $1,567,826 $1,499,286
Minimum rate of return= 13% 14% 9%
Return on Investment= (controllable margin/ average operating assets) X 100
North= ($139,700 / $997,857) X 100= 14%West = ($360,600 / $1,567,826) X 100= 23% South= ($209,900 / $1,499,286) X 100 = 14%Residual Income= controllable margin - (average operating assets x minimum rate of return)
North = $139,700 - ($997,857 x 13%) = $9,978.59West = $360,600 - ($1,567,826 x 14%) = $141,104.36South= $209,900 - ($1,499,286 x 9%) = $74,964.26North and South divisions are required to make the additional investments since their current ROI is less than 16%If residual income is used to measure performance, all the divisions requires additional investment, as their minimum required rate of return is less than 16%.
Therefore, the above calulations aptly describes the statements.
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If accounting profits for a firm are 20% of output, and the opportunity cost of financial capital is 8% of output, then what do the firm's economic profits equal
Answer: 12%
Explanation:
The Economic profits for a firm refers to the revenue received less all implicit and explicit costs.
The implicit costs would be all the costs associated with the inputs into the goods sold and explicit costs will be the opportunity cost.
Accounting profits already account for implicit costs so the formula for Economic profit is;
= Accounting profit - Opportunity cost
= 20% - 8%
= 12%
Based on the information given the firm's economic profits equal 12% of output.
Economic profit:Using this formula
Economic profit=Accounting profit - Opportunity cost
Where:
Accounting profit=20%
Opportunity cos=8%
Let plug in the formula
Economic profit= 20% - 8%
Economic profit= 12%
Inconclusion the firm's economic profits equal 12% of output.
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NewTech purchases computer equipment for $154,000 to use in operating activities for the next four years. It estimates the equipment’s salvage value at $25,000.Required:Prepare a table showing depreciation and book value for each of the four years assuming double-declining-balance depreciation.
Answer:
Accumulated depreciation = $129,000
Net book value after years = Salvage value = $25,000
Explanation:
Note: See the attached excel file for the table showing depreciation and book value for each of the four years assuming double-declining-balance depreciation.
Double-declining-balance is a depreciation method in which an asset is depreciated at twice the rate of the straight line depreciation method.
For this question, the depreciation rate can be obtained as follows:
Straight line depreciation rate = 1 / Number of years of operating activities = 1 / 4 = 0.25, or 25%
This can be done as follows:
Double-declining depreciation rate = Straight line depreciation rate * 2 = 25% * 2 = 50%
The 50% double-declining depreciation rate is therefore used in the attached excel file table.
Note that there the depreciation expenses in Year 4 is zero because the asset has already been fully depreciated in year 3 since there is a salvage value of $25,000 that must be maintained at the end of Year 4.
An increase in real GDP can shift:______.
A. money demand to the left and decrease the equilibrium interest rate.
B. money demand to the right and increase the equilibrium interest rate.
C. money demand to the left and increase the equilibrium interest rate.
D. money demand to the right and decrease the equilibrium interest rate.
Knowing she has sold 5,000 pairs, assume the company wants to launch a Black Friday promotion, where she would discount her shoes by 10%. How many more shoes would she have to sell to justify this promotion
Revenue: $500,000
Shoes: $250,000
Shoe boxes: $1,000
Advertising: $500
Rent: $1,000
Depreciation: $25
Knowing she has sold 5,000 pairs, assume the company wants to launch a Black Friday promotion, where she would discount her shoes by 10%. How many more shoes would she have to sell to justify this promotion?
A. 25.13% more shoes
B. 20.08% more shoes
C. None of the above, but I could calculate this with the information I am given.
D. None of the above, I cannot calculate this with the information I am given.
Answer:
Option A. 25.13% more shoes
Explanation:
Cost Benefit analysis would be useful here to acknowledge what percentage of shoe sales is required to justify the promotion.
The Benefit drawn before 10% promotion proposal:
Revenue: $500,000
Shoes: ($250,000)
Shoe boxes: ($1,000)
Advertising: ($500)
Rent: ($1,000)
Depreciation: ($25)
Profit $247,475
The Benefit drawn before 10% promotion proposal:
Revenue: $450,000
Shoes: ($250,000)
Shoe boxes: ($1,000)
Advertising: ($500)
Rent: ($1,000)
Depreciation: ($25)
Profit $197,475
Now we can calculate how much additional sales must be required to justify the promotion.
Sales Increase Required = (Initial Profit - Before Promotion) / Profit After Promotion
Sales Increase Required = ($247,475 - $197,475) / $197,475
Sales Increase Required = 25.31% which is close to option 1, hence Option 1 is correct here.
Promotion is termed as the activity that involves the spreading or publicizing of information regarding the products and services. It is a part of marketing that involves publicity and public relations between the customers.
The correct option is A. 25.13% more shoes
Cost Benefit analysis would be useful here to acknowledge what percentage of shoe sales is required to justify the promotion.
The Benefit drew before 10% promotion proposal:
Revenue: $500,000
Shoes: ($250,000)
Shoe boxes: ($1,000)
Advertising: ($500)
Rent: ($1,000)
Depreciation: ($25)
Profit $247,475
The Benefit drew before 10% promotion proposal:
Revenue: $450,000
Shoes: ($250,000)
Shoe boxes: ($1,000)
Advertising: ($500)
Rent: ($1,000)
Depreciation: ($25)
Profit $197,475
Now we can calculate how much additional sales must be required to justify the promotion.
Sales Increase Required = [tex]\frac{\text{Initial Profit - Before Promotion}}{\text{Profit After Promotion}}[/tex]
Sales Increase Required = [tex]\frac{\$247,475-\$197,475}{\$197,475}[/tex]
Sales Increase Required = 25.31% which is close to option 1, hence Option 1 is correct here.
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Which of the costs below would be included in the recorded cost of merchandise inventory? (Check all that apply.) Storage costs Invoice cost Wages costs Insurance costs Selling costs
Answer: Storage costs; Invoice costs; Insurance costs.
Explanation:
The costs that would be included in the recorded cost of merchandise inventory are the storage costs, the invoice cost and the insurance costs.
It should be noted that merchandise inventory has to do with the goods that have been gotten from suppliers by a distributor in order to sell them to third parties.
If a firm has a service that is valuable, rare, and costly-to-imitate, but a substitute exists for the service, the firm will
Answer: the firm will have a temporary competitive advantage
Explanation: The firm in question would have a temporary competitive advantage. Competitive advantage describes something that places a company or business or a person above the competition such as value, rarity, difficult/costly-to-imitate amongst others. However, where a substitute is already in existence for such service, then the firm would have a temporary competitive advantage.
Jack's gross pay for the week is . His yeartodate pay is under the limit for OASDI. Assume that the rate for state and federal unemployment compensation taxes is % and that Jack's yeartodate pay has previously exceeded the cap. What is the total amount of payroll taxes that Jack's employer must record as payroll tax expenses? (Do not round your intermediate calculations. Assume a FICAOASDI Tax of % and FICAMedicare Tax of %.)
Answer: $122.40
Explanation:
Jack's year to date pay has already exceeded the $7,000 limit on which State and Federal Unemployment taxes can be charged on his pay.
The amount the employer will pay is;
= FICA OASI Tax + FICA Medicare tax
= (1,600 * 6.2%) + (1,600 * 1.45%)
= 99.20 + 23.20
= $122.40
Suppose Real GDP is $700 billion and Natural Real GDP is $620 billion. To eliminate this ________________gap, Keynesian theory indicates that government should ______________________.
Answer: d. inflationary; decrease government purchases or increase taxes
Explanation:
Suppose Real GDP is $700 billion and Natural Real GDP is $620 billion. To eliminate this inflationary gap, Keynesian theory indicates that government should decrease government purchases or increase taxes.
The Real GDP is greater than the Natural real GDP which is the potential GDP. When that happens the Economy is said to be overheated and producing above its limits as Aggregate Demand is above Aggregate Supply.
To combat this the Government according to Keynes should embark on policy that will reduce economic activity. The Government can use Contractionary Fiscal Policy that will see it reduce its spending and/or increase taxes. Both of these will have the effect of reducing the amount of money in the economy left for both investment and consumption and cause a fall in the Aggregate Demand.
Chu, an Operating Manager, needs to terminate one of his subordinates, who works on the same floor. The employee, even after several warnings, has been poorly executing work-related duties. Which of the following is the most appropriate medium for dealing with the termination?
A) A face-to-face meeting
B) A video conference
C) A telephonic conversation
D) An e-mail communication
Answer:
A
Explanation:
the employee may not go to any digital options since they've been shown to not care about work stuff
Sheridan Company prepared a 2019 budget for 150000 units of product. Actual production in 2019 was 175000 units. To be most useful, what amounts should a performance report for this company compare
Answer:
The actual results for 175,000 units with a new budget for 175,000 units.
Explanation:
To be more useful, actual results should be compared with budgeted amounts of actual production.
The actual results for 175,000 units should be compare with a new budget for 175,000 units
1. Discuss how core factors, cues to quality, and interpersonal factors of a product influence your buying decisions. Discuss with supporting examples.
Explanation:
Interpersonal product feature play a role in determining one's buying decision. For example, an individual who is open to new experiences may be more likely to try a new technology.
Another example is that of an individual who has a negative view of how he or she looks or dresses, he or she may tend to seek and buy products that could enhance how they feel about themselves.
As regards the quality of a product, it is usually based on the purchase plan period. For example, an individual who notices he needs an item urgently may be less likely to include quality in his buying decision, especially when it's a life-saving item for an emergency. But someone who has the time and has been planning to buy an item for months, will more likely examine quality before he makes a buying decision.
Velocity Company estimates the following for the next year, when common stock is expected to trade at a price-earnings ratio of 7. Earnings before interest and taxes $45 million Interest expense $5 million Effective income tax rate 30% Preferred stock dividends $10 million Common shares outstanding 2 million Common stock payout ratio 25% What is Velocity's approximate expected common stock market price per share next year?
Answer:
$63
Explanation:
The computation of the expected common stock market price per share for the next year is shown below:
Price earning ratio = Share price ÷ earning per share
where
Price earning ratio is 7
Earning per share is
= (Net income - preference dividend) ÷ number of common shares outstanding
= {($45 million - $5 million) × (1 - 0.30) - $10 million)} ÷ 2 million shares
= $9
Now placing these values to the above formula
So, the expected common stock market price is
= 7 × $9
= $63
Masterson, Inc., has 3.6 million shares of common stock outstanding. The current share price is $85.50, and the book value per share is $9.25. The company also has two bond issues outstanding. The first bond issue has a face value of $73 million, a coupon rate of 5.3 percent, and sells for 95.7 percent of par. The second issue has a face value of $45 million, a coupon rate of 5.9 percent, and sells for 104.9 percent of par. The first issue matures in 23 years, the second in 11 years. The most recent dividend was $4.04 and the dividend growth rate is 4.3 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 23 percent.
1. What is the company's cost of equity?
2. What is the company's aftertax cost of debt?
3. What is the company's weight of equity?
4. What is the company's weight of debt?
5. What is the company's WACC?
Answer:
1. 9.03 %
2. 7.56 %
3. 72.45 %
4. 27.55 %
5. 8.63 %
Explanation:
Cost of equity is the return that is required by holders of Common Stocks
Cost of equity = Recent year`s dividend / Current Market Price + Expected Growth Rate
= $4.04 / $85.50 + 0.043
= 0.0903 or 9.03 %
1st bond issue
PV = $69,861,000
Pmt = ($73,000,000 × 5.30%) ÷ 2 = - $1,934,500
p/y = 2
n = 23 × 2 = 46
Fv = 0
i = ?
Cost of the 1st Bond Issue, i is : 2.1571 %
After tax cost = 2.1571 % × 77 %
= 1.66%
2nd Bond Issue
PV = $47,205,000
Pmt = ($45,000,000 × 5.90%) ÷ 2 = - $1,327,500
p/y = 2
n = 11 × 2 = 22
Fv = 0
i = ?
Cost of the 2nd Bond Issue, i is : 7,6681 %
After tax cost = 7,6681 % × 77 %
= 5.90%
Total Cost of Debt = 1.66% + 5.90%
= 7.56 %
Market Values :
Market Value of Equity = 3,600,000 shares × $85.50
= $307,800,000
Market Value of Bonds
1st Issues = $69,861,000
2nd Issue = $47,205,000
Total = $117,066,000
Weight of equity = Market Value of Equity ÷ Total Market Value
= $307,800,000 ÷ ($307,800,000 + $117,066,000)
= 72.45 %
Weight of debt = Market Value of Bonds ÷ Total Market Value
= $117,066,000 ÷ ($307,800,000 + $117,066,000)
= 27.55 %
WACC = Weighted Cost of Debt + Weighted Cost of Equity
= 27.55 % × 7.56 % + 72.45 % × 9.03 %
= 8.63 %
"he company’s beginning cash balance was $90 and its ending balance was $85. Required: 1. Use the indirect method to determine the net cash provided by operating activities for the year. 2. Prepare a statement of cash flows for the year."
Answer:
1. Net cash provided by operating activities for the year = $130
2. Ending cash balance = $85
Explanation:
Note: This question is not complete. A complete question is therefore provided before answering the question. See the attached pdf file for the complete question.
The explanation to the answer is now provided as follows:
1. Use the indirect method to determine the net cash provided by operating activities for the year.
Note: See the part 1 of the attached excel file for the calculation of the net cash provided by operating activities for the year.
Note: See the part 1 of the attached excel file for the calculation of the net cash provided by operating activities for the year.
Cash flows from operating activities refers to the section of the cash flow statement that shows the cash generated and provided by the ongoing regular business activities of a company in a particular period. Cash flows from operating activities normally comprise of net income from the income statement, adjustments to net income as well as changes in working capital.
2. Prepare a statement of cash flows for the year.
Note: See the part 1 of the attached excel file for the statement of cash flows for the year.
Statement of cash flow refers to the financial statement that presents the effect of changes in balance sheet accounts and income on cash and cash equivalents by breaking it down to operating, investing, and financing activities.
Question 59 of 83 Project M requires an initial investment of $25 million. The project is expected to generate $2.25 million in after-tax cash flow each year forever. Calculate the IRR for the project. 10% 9% 8% 7%
Answer:
9%
Explanation:
In order to calculate the internal rate of return (IRR) for a project that yields cash flows perpetually, we need to divide the yearly cash flow by the project's initial outlay:
IRR = $2,250,000 / $25,000,000 = 0.09 = 9%
The IRR represents the discount rate at which the project's net present value (NPV) equals 0.
Given money demand, by how much would the Moola central bank need to change the money supply to close the output gap?
Answer:
A. 5%
B. $20
C.-$20
D. $100 increase
E.$2
Explanation:
a. Calculation for the equilibrium interest rate in Moola
When we look at the table we would actually see that Money supply amount of $500 equal the Money demand amount of $500 which means that the equilibrium interest rate will be 5 percent.
b. The level of investment at the equilibrium interest rate.
Since we have 5% as the equilibrium interest rate which means that the investment at the equilibrium interest rate will be $20.
c. If we look at table we are going to see that the potential GDP of the amount of $330 and the actual GDP of the amount of $350 are beside the interest rate of 5 percent and we could as well see that actual GDP is lower than potential GDP which means that there is negative recessionary GDP gap.
Hence,
Recessionary GDP gap= Actual GDP - Potential GDP
Recessional GDP gap=Actual GDP $330- Potential GDP=-$20
Therefore-$20 will be the recessionary GDP gap.
d. In order for us to eliminate the recessionary gap, so that actual GDP amount can equal potential GDP , this means we have to increase the money supply to the amount of $600 which will inturn lead to an increase of $100
e. Calculation for the expenditure multiplier,
Expenditure multiplier=(Potential GDP $350-Actual GDP $330)/($20-$10)
Expenditure multiplier=$20/10
Expenditure multiplier=$2
Therefore the Expenditure multiplier will be $2
The question is incomplete as the table is not given.
In economics, demand and supply are the most important factors for any business to analyze the market. There is an inverse relationship between demand and supply. If the demand is high and supply is low then there will be higher prices of the goods.
The Moola central bank needs to change the supply of money by increasing $100 to close the output gap.
Reason:
In order to make the actual GDP amount to be equal to the potential GDP, that means by increasing the money supply of $600 will give the effect of $100 for covering the gap.
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Calgary Lumber Company incurs a cost of $315 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $440 per hbf. An alternative is to produce a "finished-cut" at a total processing cost of $465 per hbf, which can be sold for $600 per hbf. a. Prepare a differential analysis dated March 15 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2).
Answer:
Calgary Lumber Company
Differential Analysis dated March 15:
Alternative 1 Alternative 2
Sell rough-cut Lumber Process to finished-cut
Sales $440 $600
Cost of processing 315 465
Profit $125 $135
Choose Alternative 2.
Explanation:
Calgary Lumber Company's differential analysis is a tool that its management can use to decide the alternative to pursue by examining the differences in the outcomes of two or more alternative actions. From the analysis done between the two alternatives open to Calgary, it appears that the second alternative will yield a higher profit of $135 instead of alternative 1's profit of $125. There is a differential profit of $10 per hundred board feet to be made if Calgary Lumber Company pursues alternative 2 instead of alternative 1.
The income statements for Federer Sports Apparel for 2022 and 2021 are presented below.
FEDERER SPORTS APPAR
Income Statement
For the Years Ended December 31
Year Increase Decrease
2019 2018 Amount %
Net sales 18,800,000 15,500,000
Cost of goods 13,200,000 7,000,000
Gross prof 5,600,000 8,500,000
Operating expenses 1,600,000 1,200,000
Depreciation expense 1,000,000 1,000,000
Inventory write-down 200,000 0
Loss (litigation) 1,500,000 300,000
Required:
Prepare a horizontal analysis for 2022 using 2021 as the base year.
Answer and Explanation:
The Preparation of horizontal analysis for 2022 using 2021 as the base year is prepared with the help of a spreadsheet.
Horizontal analysis is a method for the analysis of financial statements that indicates fluctuations in the amount of the related products over a period of time. It is a valuable instrument for determining trend situations.
So, with the help of the spreadsheet, we will be able to find the net income by using the formulas.
The horizontal analysis of the Income Statement is the analytical form of preparing the income statement to determine the accurate amount and percentage of changes in each item of the income statement.
The horizontal income statement is attached below.
The horizontal analysis determines the change in the amounts of each account. The percentage change is the division of a change in amount by the base amount of the base year.
In this case, the base year was 2021.
Therefore, the change in amounts will be determined based upon the figures of the base year.
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Pomeroy Corporation owns an 80% interest in Sherer Company and a 90% interest in Tampa Company. On January 2, 2014, Tampa Company sold equipment with a book value of $548,400 to Sherer Company for $763,800. This equipment has a remaining useful life of three years. Sherer Company reported $105,800 and Tampa Company reported $161,100 in net income (including sales to affiliates) in 2014.
Required:
Prepare the 2014 and 2015 consolidated statements workpaper entries to eliminate the effects of this sale of equipment.
Answer:
Please see consolidated statement below
Explanation:
2014 Gain on sale of equipment A/c Dr $214,600
To equipment A/c Cr $214,000
(To eliminate equipment)
Accumulated depreciation A/c Dr $71,800
To depreciation expense A/c Cr $71,800
(To eliminate depreciation on equipment)
2015. Retained earnings beginnings- Pomeroy Company Dr $193,140
($214,600 × 90%)
Non controlling interest A/c Dr $21,460
($214,600 × 10%)
To equipment A/c Cr $214,600
(To eliminate equipment)
Accumulated depreciation A/c
Dr $143,600
To depreciation expenses A/c
Cr $71,800
To retained earnings beginning - Pomeroy A/c. Cr $64,620
($71,800 × 90%)
To non interest controlling A/c.
Cr $7,180
($71,800 × 10%)
(To eliminate depreciation)
Workings
Equipment cost = $548,400
Proceed from sale = $763,800
Gain/loss on sale of equipment = Equipment cost - Proceed from sale of equipment
= $548,400 - $763,000
= $214,600 Gain
This equipment has remaining useful life of 3 years
Depreciation on cost = $548,400 ÷ 3 years
=$182,800
Depreciation on sale amount = $763,800 ÷ 3 years
= $254,600
Excess depreciation = Difference of cost and sale of depreciation
= $182,800 - $254,600
= $71,800 Excess depreciation
Imagine you want to use conflict in a positive way. You decide to create a sense of competition among your team members. Which of these tactics could create competition?]
Answer:
a. Acknowledge top performers in the company newsletter.
Explanation:
Conflict among group members could be used for improved results by enhancing the dispute in a constructive manner. This can be achieved by recognizing and rewarding the best performers accordingly.
Therefore according to the given situation, for deciding a sense of competition you need to acknowledge the top performance in the newsletter of the company so that the employees gots motivated that results in their coming better job opportunities
Hence, the correct option is a
Garcia Co. sells snowboards. Each snowboard requires direct materials of $105, direct labor of $35, and variable overhead of $50. The company expects fixed overhead costs of $645,000 and fixed selling and administrative costs of $111,000 for the next year. It expects to produce and sell 10,500 snowboards in the next year.
Required:
What will be the selling price per unit if Garcia uses a markup of 15% of total cost?
Answer:
Selling price = $301.3
Explanation:
The selling price would be determined by adding the total unit cost to the mark- up.
Mark up is the proportion of cost that is to be earned as profit.
Selling price = Total unit cost + Profit
Profit = 25% × unit cost
Selling price = Unit cost + Mark-up
Selling price = Unit cost + (15%× unit cost)
Total unit cost =Variable cost + unit fixed cost
Total fixed cost = 645,000 + 111,000 = 756,000
Unit fixed cost = $756,000 /10,500 =×72
Total unit cost = 105 + 35 + 50 + 72 = 262
Selling price = 262 + ( 15% + 262) = 301.3
Selling price = $301.3
You are considering two ways of financing a spring break vacation. You could put it on your credit card, at 17% APR, compounded monthly, or borrow the money from youe parents, who want an interest payment of 6% every six months. which is the lower rate? (Dont round intermediate steps to decimal places)
Answer: Parent's rate is lower.
Explanation:
The lower rate will be the lower Effective Annual rate, the formula of which is;
[tex]EAR = (1 + interest rate/compounding frequency) ^{compounding frequency} - 1[/tex]
Credit Card
[tex]EAR = (1 + interest rate/compounding frequency) ^{compounding frequency} - 1[/tex]
[tex]EAR = (1 + interest rate/compounding frequency) ^{compounding frequency} - 1\\= ( 1 + \frac{0.17}{12})^{12} - 1\\= 0.184[/tex]
= 18.4%
From your parents
[tex]EAR = (1 + interest rate/compounding frequency) ^{compounding frequency} - 1\\= ( 1 + 0.07) ^{2} - 1\\= 0.1449[/tex]
= 14.5%
Parent's rate is lower.
The accounting principle that requires important noncash financing and investing activities be reported on the statement of cash flows or in a footnote is the:\
Answer: Full Disclosure Principle
Explanation:
The Full Disclosure Principle is a principle in Accounting that aims to be keep the relevant business information as transparent as possible. The principle therefore requires that all information relating to the business be disclosed so that the stakeholders in the business will be able to reasonably understand the operations of the business.
As only financial data can be reported in financial statements such as cash related activities in the Cashflow Statement, the principle requires that important noncash financing and investing activities be reported on the statement of cash flows or in a footnote so that the readers of the statement will not have any missing information.
Shoe stores A and B are considering selling two new styles of designer shoes resulting in the values below. A moves first and selects which style to sell first, and then B makes its selection (the payoffs at the bottom represent (Payoff A , Payoff B).
What is the equilibrium path of this game?
A. A will choose Black and B will choose Pink
B. A will choose Pink and B will choose Pink
C. A will choose Black and B will choose Black
D. A will choose Pink and B will choose Black
Answer:
B. A will choose Pink and B will choose Pink
Explanation:
Answer: it is b because of
Explanation:
While making purchase decisions, which of the following products is most likely to elicit the greatest reference group influence?
A) A car.
B) A medicine.
C) An award-winning novel.
D) A toothbrush.
Answer: a car
Explanation:
While making purchase decisions, the product that is most likely to elicit the greatest reference group influence will be a car.
This because when an individual has a car, other people see the person and use that as a reference group. It should also be noted that a good thatbis considered public good has a strong influence group.
While making purchase decisions, the product that is most likely to elicit the greatest reference group influence is A) A car.
What is a reference group?A reference group is a group that can influence an individual's buying preferences.
The influence wielded by a reference group depends on the level of conformity within the group.
Thus, while making purchase decisions, the product that is most likely to elicit the greatest reference group influence is A) A car.
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Criteria for recruitment of business administration department
Explanation:
A business administration professional typically needs a bachelor's degree in a relevant field, such as business administration, finance, or human resources. A bachelor's requires four years of full-time stud
All of the following are true about a cyclical pattern EXCEPT it is ______. a. often combined with long-term trend patterns and called trend-cycle patterns b. often due to multi-year business cycles c. usually easier to forecast than a seasonal pattern due to less variability d. an alternating sequence of data points above and below the trend line
The statement "it becomes easy to forecast as compared to the seasonal pattern because of the less variability" should be considered.
The information related to the cyclical pattern is as follows:
It should be repeated having regularity for many years. It is mix with the trend i.e. long-term patterns.It contains many year business cycles.It is an alternative for sequencing the data point that is above and below the trending line.But it does not easier for forecasting as the seasonal pattern should be for one year only.
Therefore we can conclude that the statement "it becomes easy to forecast as compared to the seasonal pattern because of the less variability" should be considered.
Learn more about the trend line here: brainly.com/question/22722918
What is the difference between an optimistic approach and a pessimistic approach to decision making under assumed uncertainty
Answer:
The optimistic approach examines the best possible outcome in a given situation and chooses the 'best of the best' while the pessimistic approach examines the worst possible outcome in a given situation and chooses the 'best of the worst'.
Explanation:
Decision making under assumed uncertainty is an approach that is taken when the outcomes of future events are not entirely known. The Hurwicz criterion provides a basis on which the pessimistic and optimistic outcomes can be balanced. This criterion allows the person who makes the decision to chose a coefficient of pessimism signified by alpha (α) and it is a decimal that is graded between 0 and 1. This number signifies the worst possible outcome whereas, the number (1-α) signifies the best outcome.
So, the optimistic approach examines the best possible outcome in a given situation and allows the decision-maker to choose the 'best of the best', while the pessimistic approach examines the worst possible outcome in a given situation and the decision-maker to choose the 'best of the worst'
Assume Mrs. Kinsley has filed a suit against Kitchen Essential Products Inc. for the injuries that she sustained under the theory of strict product liability. Can Mrs. Kinsley prevail in a cause of action against Kitchen Essential Products Inc. under strict product liability.
Answer:
"strict liability" says that a defendant seller, distributor or manufacturer of a defective product can be liable to anyone injured by that product, regardless of whether the defendant did everything possible to make sure the defect never happened.
In the case of Mrs Kinsley against Kitchen Essential Products inc. for the injury she sustained, she will be able to prevail in a cause action against the company under strict product liability. Because, the accident happened as a result of the faulty product which she purchased from the Kitchen Essential Product Inc company.
Explanation:
On January 31, 2016, Danvers Logistics, Inc., issued five-year, 7% bonds payable with a face value of $10,000,000. The bonds were issued at 96 and pay interest on January 31 and July 31. Danvers Logistics, Inc., amortizes bond discount by the straight-line method.
Record:
a. Issuance of the bonds on January 31, 2016.
b. The semiannual interest payment and amortization of bond discount on July 31, 2016.
c. The interest accrual and discount amortization on December 31, 2016.
Answer:
Journal entries are given below
Explanation:
Journal Entries
Requirement A: Issuance of the bonds on January 31, 2016.
Debit Credit
Cash (w) $9,600,000
Discount on bonds payable $400,000
Bonds payable $10,000,000
Working
Cash = 10,000,000*0.96 = $9,600,000
Discount on bonds payable = 10,000,000*0.04 = $400,000
Requirement B: The semiannual interest payment and amortization of bond discount on July 31, 2016.
Debit Credit
Interest expense $390,000
Cash (w) $350,000
Discount on bonds payable (w) $40,000
Working
Cash = 10,000,000x 0.07 x 6/12 = $350,000
Discount on bonds payable = 400000/(5months*2) = $40,000
Requirement C: The interest accrual and discount amortization on December 31, 2016.
Debit Credit
Interest expense $325,000
Cash (w) $291,666.67
Discount on bonds payable (w) $33333.33
Working
Cash = 10,000,000x 0.07 x 5months/12months = 291,666.67
Discount on bonds payable = 400,000/(5*2)*5/6 = 33,333.33