Answer:
a. The amount refund owed to the customer is : $29,792
b. To record the refund and the return of merchandise:
Dr Sales returned and Allowances $30,400
Cr Sales Discounts $608
Cr Cash $29,792
(to record the refund of $30,400 sales with sales discount of $608 made)
Dr Merchandise Inventory $13,060
Cr Cost of Merchandise sold $13,060
(to record the impact of the $30,400 sales refund on cost of merchandise sold and merchandise inventory)
Explanation:
- Further explanation for sell discounts calculation:
As the terms is 2/10, total discount had been given as calculated below:
$30,400 x 2% = $608.
Final answer:
The customer is owed a refund of $29,792 after the 2% sales discount on the $30,400 purchase is applied. The seller's journal entries will reverse the sale and the cost associated with the returned merchandise while recording the sales discount and the cash refund.
Explanation:
The amount of refund owed to the customer would be the sales amount of $30,400 minus the sales discount of 2%, which equals to $608 ($30,400 x 0.02). Therefore, the refund amount is $30,400 - $608 = $29,792.
The journal entries made by the seller to record the refund and the return of merchandise would be:
A. Sales Returns and Allowances $30,400Sales Discounts $608Cash $29,792B. Merchandise Inventory $13,060Cost of Merchandise Sold $13,060
These entries reflect the return of goods by the customer and the subsequent cash refund, along with the restoration of the goods to inventory and recognition of the reduction in costs of goods sold.
Howard is saving for a long holiday. He deposits a fixed amount every month in a bank account with an EAR of 11.8%. If this account pays interest every month then how much should he save from each monthly paycheck in order to have $ 15 comma 000 in the account in five years' time?
Answer:
$184.67 each month
Explanation:
Giving the following information:
Howard is saving for a long holiday. He deposits a fixed amount every month in a bank account with an EAR of 11.8%. If this account pays interest every month then how much should he save from each monthly paycheck in order to have $ 15,000 in the account in five years' time?
We need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
n= 5*12= 60
i= 0.118/12= 0.00983
FV= 15,000
A=(15,000*0.00983)/[(1.00983^60)-1]= $184.67
Howard should save $184.67 from each monthly paycheck.
Explanation:To calculate how much Howard should save from each monthly paycheck, we need to use the formula for future value of an ordinary annuity:
FV = P * ((1 + r)^n - 1) / r
Where FV is the future value, P is the monthly deposit, r is the monthly interest rate (which is 11.8% divided by 12), and n is the number of months (which is 5 years times 12 months). Rearranging the formula to solve for P, we get:
P = FV * r / ((1 + r)^n - 1)
Plugging in the values, the calculation is:
P = $15000 * (0.118 / 12) / ((1 + (0.118 / 12))^(5 * 12) - 1) = $184.67
Learn more about Calculating monthly savings for a future value here:https://brainly.com/question/29001228
#SPJ11
Grouper Corporation had 141,600 shares of stock outstanding on January 1, 2017. On May 1, 2017, Grouper issued 68,400 shares. On July 1, Grouper purchased 10,320 treasury shares, which were reissued on October 1. Compute Grouper’s weighted-average number of shares outstanding for 2017. Weighted-average number of shares outstanding
Answer:
184,620 shares
Explanation:
The computation of the weighted-average number of shares outstanding is shown below:
On January 1, 2017 to May 1, 2017
= 141,600 shares × 4 months ÷ 12 months
= 47,200 shares
On May 1, 2017 to July 1, 2017
= 141,600 shares + 68,400 shares × 2 months ÷ 12 months
= 35,000 shares
On July 1, 2017 to October 1, 2017
= 141,600 shares + 68,400 shares - 10,320 shares × 3 months ÷ 12 months
= 49,920 shares
On October 1, 2017 to December 31, 2017
= 141,600 shares + 68,400 shares - 10,320 shares + 10,320 shares × 3 months ÷ 12 months
= 52,500 shares
So, the Weighted-average number of shares outstanding would be
= 47,200 shares + 35,000 shares + 49,920 shares + 52,500 shares
= 184,620 shares
Horner Company buys a delivery van with a list price of $70,000. The dealer grants a 15% reduction in list price and an additional 2% cash discount on the net price if payment is made in 30 days. Sales taxes amount to $930 and the company paid an extra $700 to have a special device installed. What should be the recorded cost of the van?
a. $58,310.
b. $59,907.
c. $59,940.
d. $59,240.
Answer:
c. $59,940.
Explanation:
The computation of the recorded cost of the van is shown below:
= Net price - net price × cash discount + sales tax + extra amount paid for special device installed
where,
Net price = $70,000 - $70,000 × 15%
= $70,000 - $10,500
= $59,500
And, the other items values would remain the same
Now put these values to the above formula
So, the value would be equal to
= $59,500 - $59,500 × 2% + $930 + $700
= $59,500 - $1,190 + $930 + $700
= $59,940
Final answer:
To find the recorded cost of the van, calculate the net price after discounts, add sales taxes and the cost of the special device. The correct recorded cost of the van is $59,940.
Explanation:
To find the recorded cost of the van, we need to calculate the net price after the discounts and then add the sales taxes and the cost of the special device.
The list price is $70,000.
The dealer grants a 15% reduction, which means a discount of $70,000 * 0.15 = $10,500.
The net price after the 15% reduction is $70,000 - $10,500 = $59,500.
The dealer also offers an additional 2% cash discount if payment is made in 30 days. This is a discount of $59,500 * 0.02 = $1,190.
The net price after both discounts is $59,500 - $1,190 = $58,310.
The sales tax is $930, and the cost of the special device is $700.
Therefore, the recorded cost of the van should be $58,310 + $930 + $700 = $59,940.
Therefore, the correct answer is c. $59,940.
In economics, the term "capital" refers to :
A) mineral resources.
B) buildings and equipment.
C) consumer goods.
D) the money in one's pocket.
Answer:
D. the money in one's pocket
Explanation:
this is so because the financual assets needed fpr a business to produce good and/or services requires money
Suppose that the stock market experiences a significant and prolonged decline. In response, the Federal Reserve lowers the federal funds interest rate. Not long afterward the interest rate decline, there is a large positive shock to investment spending. As a result of both the monetary policy action and the investment spending shock:
O actual output may go above potential outputO inflation will increase more than the FOMC had intendedO the unemployment rate will be below the natural rateO all of the above
Answer:
a decrease in the interest rate and a positive increase in the demand will increase the demand that will increase the actual output that will go beyond the potential output and increase the inflation and decrease the unemployment rate.
Explanation:
a decrease in the interest rate and a positive increase in the demand will increase the demand that will increase the actual output that will go beyond the potential output and increase the inflation and decrease the unemployment rate.
Aerelon Airways, a commercial airline, suffers a major crash. As a result, passengers are
considered to be less likely to choose Aerelon as their carrier, and it is expected free cash flows
will fall by $15million per year for five years. If Aerelon has 55 million shares outstanding, an
equity cost of capital of 10%, and no debt, by how much would Aerelonʹs shares be expected to
fall in price as a result of this accident?
A) $0.93
B) $1.03
C) $1.14
D) $1.34
Answer:
Option B $1.03
Explanation:
First lets calculate present value = cash flow(PVAF, life, rate) where PVAF = present value annuity factor
= 15(PVAF, 10, 5 years)
from the annuity table
Present value = 15 * 3,790 = $56.8618 million
The decrease in Present value will be $56.8618 million
Decrease in price = present value/number of share = 56.8618/66 = 1.033851 approx $1.03
Final answer:
Aerelon's shares are expected to fall by $1.14 per share due to the crash. This is calculated by determining the present value of the lost free cash flows at a 10% discount rate and dividing by the number of shares outstanding.
Explanation:
To calculate how much Aerelon’s shares are expected to fall in price as a result of the crash, we need to determine the present value (PV) of the loss in free cash flows (FCF). The total loss in FCF is $15 million per year for five years. Using the given equity cost of capital which is 10%, we can discount these future cash flows to the present value. We then divide this total loss in present value by the number of shares outstanding to determine the per-share price impact.
Calculating the Present Value of the Loss in Free Cash Flows:
The formula for the present value of an annuity (a series of equal payments at regular intervals) is PV = FCF × [(1 - (1 + r)^(-t)) / r], where FCF is the annual free cash flow, r is the equity cost of capital, and t is the number of years.
PV = $15 million × [(1 - (1 + 0.10)^(-5)) / 0.10]
PV = $15 million × [(1 - (1 + 0.10)^(-5)) / 0.10]
PV = $15 million × [4.16986]
PV = $62.5479 million
Calculating the Per-Share Price Impact:
The total present value of the loss is divided by the number of shares outstanding to find the per-share impact.
Share price impact = PV / Number of shares
Share price impact = $62.5479 million / 55 million shares
Share price impact = $1.14
Therefore, as a result of the crash, Aerelon’s shares would be expected to fall by $1.14 per share, which corresponds to option C.
A state constructs an office building. The construction is financed with: (1) a transfer of $1 million from the General Fund; (2) a grant of $2 million from the federal government; (3) bond proceeds of $7 million; and (4) earnings of $100,000 from temporary investment of bond proceeds. All transactions occur in one year. How much should be reported as Other financing sources in the Capital Projects Fund?
Answer:
$8 million
Explanation:
There are total 4 sources involved.
But the government grants are reduced from the cost of the the project. It is not recorded as other financing sources.
Also the earnings from bond proceeds shall not be considered for the other financing sources, as that is mere use of income.
Use of general fund in these capital projects will account for such other financing sources.
Cash received from issue of bonds for this project will also account for such capital fund.
Thus, total other financing sources = $1 million + $7 million = $8 million
In this scenario, the amount to be reported as 'Other financing sources' in the Capital Projects Fund totals $8.1 million, which is the sum of the transfer from the General Fund ($1 million), the bond proceeds ($7 million), and the earnings from temporary investments ($100,000).
Explanation:In accounting for government funds, the amounts reported as Other financing sources in a Capital Projects Fund typically include transfers from other funds, proceeds from long-term debt (bonds), and interest earned on temporary investments.
In your case, the state is funding the construction of an office building with: a transfer of $1 million from the General Fund (1), a grant of $2 million from the federal government (2), bond proceeds of $7 million (3), and earnings of $100,000 from temporary investment of bond proceeds (4).
The grant from the federal government would not typically be classified as 'Other financing sources' for the Capital Projects Fund. Instead, it would be classified as revenue. Therefore, the total amount to be reported as Other financing sources in the Capital Projects Fund would be the sum of items 1, 3, and 4: $1 million + $7 million + $100,000 = $8.1 million.
Learn more about Government Accounting here:https://brainly.com/question/29781542
#SPJ12
Bramble Industries purchased $9,100 of merchandise on February 1, 2020, subject to a trade discount of 10% and with credit terms of 3/15, n/60. It returned $2,300 (gross price before trade or cash discount) on February 4. The invoice was paid on February 13. Assuming that Bramble uses the perpetual method for recording merchandise transactions, record the purchase, return, and payment using the gross method. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 6,578. Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCredit Feb. 1Feb. 4Feb. 13 Feb. 1Feb. 4Feb. 13 Feb. 1Feb. 4Feb. 13SHOW LIST OF ACCOUNTSLINK TO TEXTLINK TO VIDEO Assuming that Bramble uses the periodic method for recording merchandise transactions, record the purchase, return, and payment using the gross method. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 6,578. Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCredit Feb. 1Feb. 4Feb. 13 Feb. 1Feb. 4Feb. 13 Feb. 1Feb. 4Feb. 13SHOW LIST OF ACCOUNTSLINK TO TEXTLINK TO VIDEO At what amount would the purchase on February 1 be recorded if the net method were used? (Round answer to 0 decimal places, e.g. 6,578.)Net price $
Answer:
The first two solutions are attached in the excel document.
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation:
Solution 3:
Amount at which purchase on February 1 be recorded if the net method were used = $9,100*90%*97% = $7,944
Among the following choices, an operations manager might best evaluate political risk of a country by looking at which type of country ranking?
a. based on magnitude of government social programs
b. based on corruption based on competitiveness
c. based on cost of doing business
d. based on average duration between presidential/prime minister elections
Answer:
b. based on corruption based on competitiveness
Explanation:
Competing globally and enhancing a nation’s position internationally are characteristically linked to the welfare of citizens. In fact, in today’s world, improving the welfare of citizens has become a priority for responsible governments and those which aspire to be global actors.
Liberalization, globalization of business, and access to information have induced governments in many parts of the world to demonstrate to their constituencies that they are responsive and committed to fostering a healthy economy.
Which of the following statements is NOT true regarding a bill of material (BOM)?
A. A BOM lists the quantity of each coponent required to make one unit of a product.
B. A BOM lists the hierarchy of components and their description.
C. In the food-service industry, BOMs manifest themselves in portion-control standards.
D. A BOM cannot be referenced on other bills of material.
Answer:
The false statement is letter "D": A BOM cannot be referenced on other bills of material.
Explanation:
A Bills of Material or BOM is a complete list including raw material, pieces and components and the quantity of each one of them that is necessary to produce or repair a product. Usually, for complementary goods, the BOM of one of them can be referenced in the BOM of another so opportunities for reducing costs can be identified.
The false statement regarding a bill of material is that a BOM cannot be referenced on other bills of material. In fact, subassemblies can have their own BOMs, which are included in the BOMs of more complex assemblies. Hence, correct option D.
The statement D. A BOM cannot be referenced on other bills of material is not true regarding a bill of material (BOM). It is quite common in complex manufacturing processes for a BOM to reference other BOMs, especially when various subassemblies are involved in creating a final product. This hierarchical structure allows for more efficient material tracking and inventory management. Therefore, subassemblies can indeed have their own BOMs, which are referenced in the BOM of a more complex assembly.
A Bill of Material (BOM) serves several critical functions in manufacturing and production:
A BOM lists the quantity of each component required to make one unit of a product, ensuring accurate material planning.
It includes a hierarchy of components along with a descriptive list, organizing the components in a way that reflects their relationships within the product.
In the food-service industry, BOMs take the form of portion-control standards, specifying the amount of each ingredient used in a dish to maintain consistency and control costs.
3. Explain why price is equal to marginal revenue in pure competition but not in a monopoly. Include in your explanation why the marginal revenue curve is steeper than the demand curve for a single price monopolist?
Answer:
The answer is in a perfect competition profit is maximized when marginal cost equal marginal revenue and price is equal to average revenue and marginal revenue, while in monopolist profit is maximized when marginal cost is equal to marginal revenue.
Explanation:
The firm in a perfectly competitive market is a price taker,the price in the market is determined by the market forces of demand and supply. The firm has to sell their product at the ruling market price.The demand curve facing the firm in perfectly competitive market is horizontal or perfectly elastic, profit is therefore maximized when the marginal cost is equal to average revenue and marginal revenue. The firm in the market operate at the output level in which the price and marginal revenue is equal to marginal cost. Whatever prices that change the market demand or supply will change the demand curve faced by the firm.The firm cannot do anything to this than to accept the market price and the demand curve.
In a monopoly the demand curve is identical to the demand curve of the firm, because industry demand curve is downward sloping.The monopolist can either set the price or quantity not the two.when one is determined the value of the other will be determined by the demand function. The profit maximization of the monopolist also requires that marginal cost must be equal to marginal revenue just like in the case of perfect completion.when the monopolist equates MR and MC the monopolist determines its output and the market price for the product. The revenue curve is steeper than the demand curve,because the straight line is the market demand. The firm will have to reduce The price of the product if they want to sell more of their product the unit of the product sold is the AR which is equal to the price.Therefore the AR curve of the monopolist and the perfect competition MR and AR are both identical that informed the reason why the marginal revenue curve is steeper than the demand curve for a single price monopolist.
In a perfect competition market, the Marginal Revenue is equal to the price (MR = P), and for monopolist, the marginal revenue is not equal to the price, because changes in quantity of output affects the price.
Why is price equal to Marginal revenue in pure competition?Marginal revenue (MR) is an increase in the total revenue resulting from an increase in one unit of product. As the price always remains constant in perfect competition, increasing the total revenue from the production of 1 additional unit will be equal to the price.
Therefore, Price = Marginal Revenue (P = MR) in perfect competition.
In a monopoly the demand curve is the same as the firm's demand curve, in that the industry demand curve drops downwards. One owner can set the price or quantity and not both.
If one is determined the price of the other will be determined by the demand function. Increasing the monopolist's profit also requires that the marginal cost should be equal to the marginal revenue as if it were in perfect competition.
The Marginal revenue curve is steeper than the demand curve because a straight line is market demand. The firm will have to lower the Product Price if it wants to sell more of its product a unit of sale sold average revenue equal to the Price.
So the AR curve of AR monopolist and perfect competition MR and AR are both same.
Thus, this is the reason why the marginal revenue curve is steeper than the demand curve in the case of a monopolist.
To learn more about Marginal revenue, refer to the link:
https://brainly.com/question/10822075
There are three methods for estimating the cost of common stock from reinvested earnings (not newly issued stock): the CAPM method, the DCF method, and the bond-yield-plus-risk-premium method. However, only the CAPM method always provides an accurate and reliable estimate. True or false?
Answer:
False
Explanation:
Capital Asset Pricing Model(CAPM) of calculating cost of equity is not the accurate and reliable method making this statement false.
CAPM formula ; r = risk free rate + beta (Market return - risk free rate)
Its assumptions are have limitations as the beta is difficult to estimate since it is unstable and changes from time to time. Additionally, it is difficult to determine the correct risk free rate to use in the calculation.
The process of identifying other organizations that are best at some facet of your operations and then modeling your organization after them is known as: A. copycatting. B. employee empowerment. C. patent infringement. D. continuous improvement. E. benchmarking.
Answer:
E. benchmarking
Explanation:
Benchmarking is used to identify internal opportunities for improvement by identifying other organizations that are best at some aspects of your operations, studying and breaking down what makes those organizations perform better and then aiming to implement changes in your company in order to achieve the same standards of the analyzed organizations.
This year Jack intends to file a married-joint return. Jack received $167,500 of salary and paid $5,000 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid moving expenses of $4,300 and $28,300 of alimony to his ex-wife, Diane, who divorced him in 2012.b. Suppose that Jack also reported income of $8,800 from a half share of profits from a partnership. Disregard any potential self-employment taxes on this income.What AGI would Jack report under these circumstances?
Final answer:
Jack's adjusted gross income (AGI) would be calculated by adding his salary ($167,500) and partnership income ($8,800) to get $176,300, then subtracting deductible alimony payments ($28,300) to arrive at an AGI of $148,000.
Explanation:
To calculate Jack's adjusted gross income (AGI), we must consider all sources of income and allowable deductions. First, we sum up all income sources:
Salary: $167,500Partnership income: $8,800This gives us a total income of $167,500 + $8,800 = $176,300.
Next, we subtract the deductions for AGI Jack is eligible to claim:
Alimony paid (since the divorce was in 2012, it is deductible): -$28,300However, the moving expenses and interest on loans for qualified tuition costs are not deductible for AGI, as these types of deductions have been suspended or changed in recent tax reforms (unless the moving expenses are for certain members of the Armed Forces). As a result, we do not subtract the $4,300 moving expenses or the $5,000 interest for tuition costs from total income.
Finally, we calculate Jack's AGI:
Total income: $176,300
Minus deductible alimony: $28,300
Adjusted Gross Income (AGI): $148,000
Jack's Adjusted Gross Income (AGI) is calculated by adding his salary and partnership income, and then subtracting allowable deductions like interest on student loans, moving expenses, and alimony. The resulting AGI is $138,700.
Calculation of Adjusted Gross Income (AGI) for Jack
To calculate Jack's Adjusted Gross Income (AGI), we need to consider his total income and then subtract allowable deductions.
Total Income: Jack received a salary of $167,500 and reported an additional $8,800 from a half share of profits from a partnership.
Add these amounts to get the Total Income:
Salary: $167,500
Partnership Income: $8,800
Total Income: $167,500 + $8,800 = $176,300
Deductions:
Interest on qualified student loans: $5,000
Moving expenses: $4,300
Alimony paid (deductible if the divorce occurred before 2019, such as in Jack's case): $28,300
The total deductions are calculated as:
$5,000 + $4,300 + $28,300 = $37,600
Finally, subtract the total deductions from the total income to get the AGI:
AGI = $176,300 - $37,600 = $138,700
Therefore, Jack will report an Adjusted Gross Income (AGI) of $138,700 in his married-joint return
Excess reserves A. are reserves banks keep above the legal requirement. B. are reserves banks keep to meet the reserve requirement. C. are loans made at above market interest rates. D. are the deposits that banks do not use to make loans. Suppose the required reserve ratio is 1313% and a bank has the following balance sheet: Assets Liabilities Reserves $2 comma 0002,000 Deposits $10 comma 00010,000 Loans $8 comma 0008,000 This bank keeps required reserves of $nothing and excess reserves of $nothing. (Enter your responses as integers.)
Answer:
The correct answer is A
Required reserve is $1,300
Excess reserve is $700
Explanation:
Excess reserve is the capital reserve that is held by the financial institutions or the banks in excess or more of what is needed by the creditors, internal controls or the regulators.
So, it is the reserves banks need to keep above the legal requirements.
The required reserve is computed as:
Required reserve = Reserve ratio × Deposits
= 13% × 10,000
= $1,300
Excess reserve is computed as:
Excess reserve = Reserves - Required reserve
= $2,000 - $1,300
= $ 700
Excess reserves are funds that banks hold over and above the legal requirement set by the Federal Reserve. Based on the 13% reserve ratio and the bank's balance sheet, the required reserves are $1,300 and the excess reserves are $700.
Explanation:In response to your question, the excess reserves are reserves that banks hold in addition to the legal requirement. This means they surpass what's mandated by the Federal Reserve, and is not used for loans or investments. So, option A is correct in stating that excess reserves are the reserves banks keep above the legal requirement.
Looking at the bank's balance sheet with reserves of $2,000 and deposits of $10,000, you can calculate the required and excess reserves. Given that the required reserve ratio is 13%, the required reserves would be 13% of $10,000 which equals $1,300. Since the actual reserves are $2,000, the excess reserves would be $2,000 - $1,300 which equals $700.
So, the bank keeps required reserves of $1300 and excess reserves of $700.
Learn more about Excess Reserves here:https://brainly.com/question/28234754
#SPJ3
Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company’s operations in July appear below:
Vulcan Flyovers Operating Data For the Month Ended July 31
Actual Results Flexible Budget Planning Budget
Flights (q) 55 55 53
Revenue ($350.00q) $ 16,200 $ 19,250 $ 18,550
Expenses:
Wages and salaries ($3,700 $86.00q) 8,398 8,430 8,258
Fuel ($33.00q) 1,979 1,815 1,749
Airport fees ($870 $32.00q) 2,510 2,630 2,566
Aircraft depreciation ($9.00q) 495 495 477
Office expenses ($230 $1.00q) 453 285 283
Total expense 13,835 13,655 13,333
Net operating income $ 2,365 $ 5,595 $ 5,217
The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount.
Required:
Complete the fexible budget perfromance for july:
(a) Revenue and spending variance.
(b) Activity variances.
Final answer:
The flexible budget performance for July can be analyzed by calculating the revenue and spending variances as well as the activity variances. The revenue variance is -$3,050 and the spending variance is $180. The net operating income activity variance is -$2,852.
Explanation:
The flexible budget performance for July can be calculated by analyzing the revenue and spending variances as well as the activity variances.
(a) Revenue and Spending Variances:
The revenue variance can be calculated by finding the difference between the actual revenue and the flexible budget revenue. In this case, the revenue variance is $16,200 - $19,250 = -$3,050. The spending variances can be calculated by finding the difference between the actual expenses and the flexible budget expenses for each category. The total spending variance is $13,835 - $13,655 = $180.
(b) Activity Variances:
The activity variances can be calculated by finding the difference between the actual results and the planning budget results. The net operating income activity variance is $2,365 - $5,217 = -$2,852.
________ management is a systematic, structured approach to improvement, in which people critically examine, rethink, and redesign business processes in order to achieve dramatic improvements in one or more performance measures, such as quality, cycle time, or cost.
A. Business process
B. Business activity
C. Application service
D. Business service
E. Application performance\
Answer: (A) Business process management
Explanation:
The business process management is one of the systematic and structure approach for monitoring, executing, designing and also control the process in the business management.
The main aim of the business process management is that it helps in improve the overall operation of the business management. It also control the workflow and also reduce the expenditure of the business.
It also achieve the various dramatic improvement by measuring the performance, quality and the cost. Therefore, Option (A) is correct.
You own shares in Supernova Inc. that were purchased at a price of $23 per share. Quicksilver
Inc. has offered to purchase Supernova Inc. and buy your shares at a price of $34 per share.
What will be your return if you tender your shares to Quicksilver Inc. and the deal is
completed?
A) 47.83%
B) 33.48%
C) 50.22%
D) 45.43%
Answer:
A) 47.83%
Explanation:
The computation of the return is shown below:
= (Supernova price per share - owned purchase price per share) ÷ (owned purchase price per share) × 100
= ($34 per share - $23 per share) ÷ ($23 per share) × 100
= ($11 per share) ÷ ($23 per share) × 100
= 47.83%
Simply we take the difference per share and then divide it by the owned purchase price per share so that the accurate rate of return can be computed
Baldwin has negotiated a new labor contract for the next round that will affect the cost for their product Baker. Labor costs will go from $1.90 to $2.40 per unit. In addition, their material costs have fallen from $6.82 to $5.82. Assume all period costs as reported on Baldwin's Income Statement remain the same. If Baldwin were to pass on half the new costs of labor and half the savings in materials to customers by adjusting the price of their product, how many units of product Baker would need to be sold next round to break even on the product?
A.759
B.874
C.1,047
D.848
Answer:
D.848
Explanation:
Please see attachment
The labor cost per unit has increased by $0.50 while the material cost has decreased by $1.00, leading to a net decrease in total unit cost by $0.50. If half of the new costs/savings are passed to the customers, there will be a net decrease in the selling price by $0.25 per unit. However, due to missing data such as unit selling price and fixed costs, we can't calculate the exact break-even point.
Explanation:First, let's calculate the impact of labor and material costs changes on the unit cost of product Baker. The labor cost per unit has increased by $0.50 ($2.40 - $1.90) but the material cost per unit has decreased by $1.00 ($6.82 - $5.82) resulting in a net decrease in the total unit cost by $0.50. If Baldwin decides to pass half of the new costs/savings to the customers, this means there will be a net decrease in the selling price by $0.25 per unit.
To calculate the number of units needed to break even, we need to know the unit contribution margin (the selling price per unit - unit variable cost). Since all period costs are said to remain the same, we can use this figure as the fixed cost in our break-even formula. Unfortunately, as important data such as the selling price per unit and fixed costs are missing, it's not possible to solve the break-even point problem.
Learn more about Break-even analysis here:https://brainly.com/question/33717502
#SPJ11
A sustainable competitive advantage is gained:
A. when a company has durable competitive assets that are central to its strategy and superior to those of rival firms. B. when a company has sufficient resources to expedite its strategy.
C. when a company realizes its inherent weaknesses are transformable to advantages.
D. when a company can stand out relative to rivals because of resource utilization.
Answer:
A. When a company has durable competitive assets that are central to its strategy and superior to those of rival firms.
Explanation:
A sustainable competitive advantage is basically the strength to hold on sustainably no matter what.
A firm that has total fixed costs of $40,000 sells its output for $250 per unit and has an average variable cost of $150. If the firm's cost and revenue curves are linear and output is equal to 500 units, what is the firm's degree of operating leverage?
A. 5
B. 4
C. 3
D. None of the above is correct.
Answer:
option (A) 5
Explanation:
Data provided in the question:
Total fixed cost = $40,000
Selling price = $250 per unit
Average variable cost = $150
Output = 500 units
Now,
Firm's degree of operating leverage
= {output × ( Selling price - Variable cost )} ÷ {output × ( Selling price - Variable cost )-Total fixed cost}
on substituting the respective values, we get
= [tex]\frac{500\times( 250 - 150 )}{500\times(250 - 150 ) - 40,000}[/tex]
= 50,000 ÷ [ 50,000 - 40,000 ]
= 50,000 ÷ 10,000
= 5
Hence,
The correct answer is option (A) 5
Sue now has $125. How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding?
$205.83
$216.67
$228.07
$240.08
$252.08
Answer:
future value = 240.076 = 240.08
so correct option is $240.08
Explanation:
given data
present value = $125
rate = 8.5 % = 0.085
time = 8 year
to find out
future value
solution
we get here future value that is express as
future value = present value × [tex](1+r)^{t}[/tex] ...........................1
here r is rate and t is time period
put here value in equation 1
future value = present value × [tex](1+r)^{t}[/tex]
future value = $125 × [tex](1+0.085)^{8}[/tex]
future value = 240.076 = 240.08
so correct option is $240.08
What is the payback period for an investment project with an upfront cost of $1,000,000, but benefits of $400,000 per year forever? (Note: Enter the number of years as your answer, but do not enter "years", just the number.)
Answer:
2.5
Explanation:
Upfront cost = $1,000,000
Yearly benefits = $400,000
The payback period is the time that a business takes to repay the amount investment. That is, the time it takes to break even.
In this case, since benefits are steady and no further incurred costs are mentioned. The payback period (t) is given by:
[tex]t=\frac{\$1,000,000}{\$400,000} \\t=2.5\ years[/tex]
Suppose that you are a systems analyst on a project that involves modifying the sales order process. Since your company receives in the neighborhood of 2500 sales orders per day, how many do you need to sample if you want 95% certainty that you have covered all variations? What if the number of sales orders per day was 25,000 orders?
Answer:
Sample size = 384.16 ≈ 385
If we increase the order size to 25,000, there will be no change in the sample size as sample size is independent of the number of orders
Explanation:
Data provided in the question:
Number of sales order received per day = 2500
Confidence level = 95%
Certainty factor for 95% certainty = 1.96
Now,
Sample size = [tex]0.25\times(\frac{\textup{Certainty factor}}{\textup{1 -Desired accuracy}})^2[/tex]
on substituting the respective values, we get
Sample size = [tex]0.25\times(\frac{\textup{1.96}}{\textup{1 - 0.95}})^2[/tex]
or
Sample size = 384.16 ≈ 385
If we increase the order size to 25,000, there will be no change in the sample size as sample size is independent of the number of orders
Makai Metals Corporation has 9.4 million shares of common stock outstandin par value $1,000 each. The common stock currently sells for $42 per share a maturity and sell for 113 percent of par. The market risk premium is 8.2 perce rate is 35 percent. a. What is the firm's market value capital structure?
Answer:
Please see attachment
Explanation:
Please see attachment
Which of the following best describes the concept of laissez-faire?
a.
Government should not intervene in the economy.
b.
Government should actively intervene in the economy whenever it judges the action to be beneficial.
c.
Government should intervene in the economy only to promote short-term economic stability.
d.
Government should intervene in the economy only to maximize long-term growth rates.
e.
Government should intervene in the economy only when the economy is not at full employment or there is substantial inflation.
Answer:
a. Government should not intervene in the economy.
Explanation:
The concept of laissez-faire arose during the economic liberalism movement and promotes that the government should not intervene in the economy. According to laissez-faire, the main economic role of the government was to regulate and protect rights to private property.
Therefore, the answer is a. Government should not intervene in the economy.
Laissez-faire is a principle of economic liberalism where government intervention in the economy is minimized, allowing individual economic interests to guide the market. It's best described by the statement: Government should not intervene in the economy.
Explanation:The concept of laissez-faire is best described by option a: Government should not intervene in the economy. Originating from the French phrase that literally means 'let do', laissez-faire is a fundamental principle associated with economic liberalism, where the role of the government in the economy is minimized.
This economic ideology assumes that when individuals are free to pursue their own economic interests, the result is beneficial for society as a whole. In a laissez-faire system, the market is guided by the invisible hand of supply and demand, not by government intervention.
Learn more about laissez-faire here:https://brainly.com/question/23946713
#SPJ3
The population of deer in a certain area of Stanly county grows proportional to itself. The population of deer in 2000 was found to be 145, and by 2010 the population had frown to 185. Find the growth constant k (rounded to 6 decimal places), and the expected deer population in 2013.
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Which pricing policy is probably "best" for a profit-oriented, low-cost producer who is introducing a new product into a market with elastic demand and is expecting strong competition very soon after product introduction?
A. Skimming pricing
B. Introductory price dealing
C. Meeting competition pricing
D. Penetration pricing
E. Status-quo pricing
Answer:
D
Explanation:
Penetration pricing strategy is setting an initial low price in other to gain market share and switch consumers from competitors. As a new entrant into the market with Low cost production, penetration pricing strategy should be introduced.
On January 1, 2021, Lyle's Limeade issues 3%, 20-year bonds with a face amount of $80,000 for $69,058, priced to yield 4%. Interest is paid semiannually.What amount of interest expense will be recorded in the December 31, 2021, annual income statement?
Answer:
The interest expense of $2,765.94 is recorded in the annual income statement.
Explanation:
As the interest is paid semiannually, so the first interest will be in June, it is computed by using the method of effective interest rate :
Interest expense = Amount × Rate / 2
=$69,058 × 0.04 / 2
= $1,381.16
Now, Computing the amount of the above interest expense that amortizes the bond discount as:
= Face value × issued at 3% / 2
= 80,000× 0.03 / 2
= $1,200
= $1,381.16 - $1,200
= $181.16
The difference is added to the carrying value of the bond which is:
= Difference amount + Carrying amount
= $181.16+ $69,058
= $69,239.16
The interest for 6 months ending on December 31 is computed as:
= $69,239.16 ×0.04 / 2
= $1,384.78
Total interest expense at 12/31/12 would be:
= June 30 expense + December 31 expense
= $1,381.16 + $1,384.78
= $2,765.94
The interest expense Lyle's Limeade would record in the December 31, 2021, annual income statement, based on its bond issued at discount, would be $2,789.94.
Explanation:Lle's Limeyade issued a 3% bond whose face value is $80,000. However, this bond was sold for less than its face value at $69,058, meaning that the bond was issued at a discount. This happens when the market interest rate (4% in this case) is higher than the bond's coupon interest rate (3%). Interest expense for a bond issued at a discount is calculated using the market interest rate at the time the bond was issued multiplied by the bond's book value at the beginning of the year.
Since the interest is paid semiannually, you would use 2% (4%/2) as the rate for each 6-month period. Therefore, if this bond was issued on January 1, 2021, the interest expense recorded in the December 31, 2021, annual income statement would be the sum of the interest expenses of the two 6-month periods in 2021.
The interest for the first six months would be $69,058 (book value at beginning of 2021) * 2% = $1,381.16. Then, the book value at the beginning of the second period would be $69,058 (initial book value) + $1,381.16 (first period interest) = $70,439.16. So, the interest expense for the second six months is $70,439.16 * 2% = $1,408.78.
So, the total interest expense that would be recorded in the December 31, 2021, annual income statement would be $1,381.16 (first six months interest) + $1,408.78 (second six months interest) = $2,789.94.
Learn more about Interest Expense here:https://brainly.com/question/33177136
#SPJ3
Hampton Corporation's common stock dividends are expected to grow by 8% per year. Recently, the firm paid a $3.00 common stock dividend. Hampton has a beta of 1.40. The expected return on the S&P 500 index is 12.5% and the rate of return on U.S. Treasury securities is 7%. Using this information and the CAPM, what is the stock's intrinsic value?
a) $72
b) $66.67
c) $24
d) $48.36
e) $25.92
Answer:
d) $48.36
Explanation:
For computing the intrinsic value, first we have to compute the cost of equity by using CAPM Model which is shown below:
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 7% + 1.4 × (12.5% - 7%)
= 7% + 1.4 × 5.5%
= 7% + 7.7%
= 14.70%
Now the intrinsic value would be
In this question, we apply the Gordon model which is shown below:
= Next year dividend ÷ (Required rate of return - growth rate)
where,
Current year dividend
= $3 + $3 × 8%
= $3 + 0.24
= $3.24
The other items rate would remain the same
Now put these values to the above formula
So, the value would equal to
= 3.24 ÷ (14.70% - 8%)
= $48.36
The intrinsic value of Hampton Corporation's common stock as per the Capital Asset Pricing Model (CAPM) is calculated to be $48.36.
Explanation:To calculate the intrinsic value of Hampton Corporation's common stock using the Capital Asset Pricing Model (CAPM), we first need to determine the required rate of return. We use the formula: Risk-free rate + Beta*(Market rate of return - Risk-free rate), in this case is 7% + 1.4*(12.5% - 7%) = 14.3%.
Next, we calculate the expected dividend in the next year, which would be the recent dividend paid grown by the growth rate. That gives us $3.00 * 1.08 = $3.24.
The intrinsic value is calculated using the Gordon Growth Model which is the expected dividends divided by required rate of return minus the growth rate. Hence, the intrinsic value will be $3.24 / (14.3% - 8%) = $48.36.
Therefore, the option d) $48.36 is the correct answer.
Learn more about Intrinsic Value here:https://brainly.com/question/33285296
#SPJ11