Answer:
1755 units are ordered
Explanation:
given data
Daily demand = 100 units
standard deviation = 25 units
review period = 10 days
lead time = 6 days
stock = 50 units
service probability = 98 percent
to find out
how many units should be ordered
solution
order quantity is calculated in fix time period formula is express as
q = [tex]\bar{d}(L+R) + z \sigma_{L+R} - I[/tex] .........................a
here L is lead time and R is review time and σ is standard deviation and I is stock and d is Daily demand
so first we find here standard deviation that is
[tex]\sigma_{L+R} = \sqrt{L} * \sigma[/tex] ...................1
[tex]\sigma_{L+R} = \sqrt{25} * 25[/tex]
[tex]\sigma_{L+R} =100[/tex]
so the value of z is for 98 % service probability is 2.05
so put here value in equation 1
q = 100 × ( 6 +10) +(2.05) × 100 - 50
q = 1755 units
so 1755 units are ordered
To maintain a 98% service probability, we calculate the reorder point using daily demand, service level, lead time, and review period. As 1816.52 units is our reorder point and we currently have 50 units in stock, therefore the company should order approximately 1767 units.
Explanation:The calculation solves for the reorder point using the formula Reorder Point = Daily demand * (Lead time + Review period) + Service Level * Standard Deviation * sqrt(Review period + Lead time). Here, Daily demand is 100 units, Lead time is 6 days, Review period is 10 days, the Standard Deviation is 25 units, and the Service Level for a 98% service probability is approximately 2.06 (from z-value table).
So, Reorder Point = 100 * (6+10) + 2.06* 25 * sqrt(10 + 6) = 1816.52. The number of units that should be re-ordered is thus the reorder point minus the current stock, which results in 1816.52 - 50 = 1766.52. As we cannot order in fractions, we should round it up to 1767 units.
Learn more about Inventory Management here:https://brainly.com/question/33751079
#SPJ12
An employee starts the execution of an OLAP application that uses a lot of computational resources while executing. Normally, this application runs overnight when resources are not heavily used, but this time it is executed during prime work time. As a result, order-entry transactions are unable to be completed. This type of human error is termed __________.
(A) spoofing
(B) spamming
(C) spoofing
(D) denial of service
(E) hacking
Answer:
(D) denial of service
Explanation:
Denial of service -
It is a type of cyber - attack where offender tries to make the source of network or the machine unavailable for the user via disturbing the service of the of the internet .
The task of denial of service is done by flooding the machine or the source with many requests in a way to overload the system .
Hence , from the question , the example shown in the question is about denial of service .
A 4-year project has an annual operating cash flow of $53,500. At the beginning of the project, $4,450 in net working capital was required, which will be recovered at the end of the project. The firm also spent $22,800 on equipment to start the project. This equipment will have a book value of $4,820 at the end of the project, but can be sold for $5,790. The tax rate is 35 percent. What is the Year 4 cash flow?
A. $61,714
B. $54,501
C. $20,633
D. $64,080
E. $63,401
Answer:
E. $63,401
Explanation:
gain on disposal = salvage value of plant - book value on date of sale
= $5,790 - $4,820
= $970
tax on disposal = $970*35%
= $339.50
after tax salvage value = $5,790 - $339.50
= $5,450.50
total cash flow in 4 years
= annual operating cash flow + net working capital + after tax salvage value
= $53,500 + $4,450 + $5,450.50
= $63,401
Therefore, The Year 4 cash flow is $63,401.
Alex just graduated from college and is now in the market for a new car. He has saved up $4,000 for a down payment. He's deciding between a Super and a Duper. The Super is priced at $23,599, and the Duper is priced at $18,999. After agonizing over the decision, he decides to buy the Duper. He writes the dealership a check for $4,000 and takes out a loan for the remainder of the purchase price. Identify what role money plays in each of the following parts of the story. Hint: Select each role only once. Role of Money Medium of Exchange Unit of Account Store of Value Alex writes a check for $4,000. Alex can easily determine that the price of the Super is more than the price of the Duper. Alex has saved $4,000 in his checking account.
Answer:
1. Medium of exchange, 2. Unit of Account and 3. Store of value
Explanation:
Please see attachment
To identify what role money plays in each of the following parts of the story . Medium of exchange, Unit of Account and Store of value
What is Medium of Exchange ?
A medium of exchange is a device or system that acts as a middleman in transactions involving the exchange of goods between parties. A system must represent a standard of value in order to serve as a medium of exchange. All parties must concur to that norm as well.
1. Alex writes a check for $4,000: Medium of exchange
2. Alex can easily determine that the price of the super is more than Duper: Unit of Account
3. Alex has saved $4000 in his checking account: Store of value
Therefore, the correct answer for the problem is
1. Medium of exchange,
2. Unit of Account and
3. Store of value
Learn more about Medium of transaction here
https://brainly.com/question/25965295
# SPJ 2
Drogo, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 12 years to maturity that is quoted at 110 percent of face value. The issue makes semiannual payments and has an embedded cost of 6 percent annually.
a. What is the company’s pretax cost of debt? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Pretax cost of debt %.
b. If the tax rate is 35 percent, what is the aftertax cost of debt? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Aftertax cost of debt %.
Answer:
1. 4.89%
2. 3.18%
Explanation:
In this question, we use the Rate formula which is shown in the spreadsheet.
The NPER represents the time period.
Given that,
Present value = $1,000 × 110% = $1,100
Assuming figure - Future value or Face value = $1,000
PMT = 1,000 × 6% ÷ 2 = $30
NPER = 12 years × 2 = 24 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this,
1. The pretax cost of debt is 4.89%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 4.89% × ( 1 - 0.35)
= 3.18%
Scientific management forms of work organization are being replaced with flatter, team-oriented work structures that serve ____________________ and employee involvement rather than mass manufacturing.A. union demandsB. increased productivityC. flexible specializationD. extrinsic motivators
Answer: flexible specialization
Explanation: In simple words, flexible specialization refers to an organisation which is expertise in its field of business regrading manufacturing or after sales service ans still can change their level and method of business within a short notice as per the situation.
Only team oriented work structures can implement that as in such as structure all the employees suggestions are taken into consideration which brings harmony and trust. On the other hand, scientific management involves planning by the top managers and execution by the lower level.
In 2019, Alliant Corporation acquired Centerpoint Inc. for $548 million, of which $98 million was allocated to goodwill. At the end of 2021, management has provided the following information for a required goodwill impairment test: Fair value of Centerpoint Inc. $ 402 million Book value of Centerpoint’s net assets (excluding goodwill) 352 million Book value of Centerpoint’s net assets (including goodwill) 450 million Required: 1. Determine the amount of the impairment loss. (Negative amount should be indicated by a minus sign. Enter your answer in millions (i.e., 10,000,000 should be entered as 10)).
Answer:
$48 million
Explanation:
In this scenario, we compare the values between book value including goodwill and the fair value of machinery, the difference would be the loss on impairment of the asset
In mathematically,
= Book value including goodwill - fair value
= $450 million - $402 million
= $48 million
All other information which is given is not relevant. Hence, ignored it
The amount of the impairment loss is $48 million.
Explanation:In order to determine the amount of the impairment loss, we need to compare the fair value of Centerpoint Inc. with its book value. The fair value of Centerpoint Inc. is $402 million, while its book value (including goodwill) is $450 million. The difference between the fair value and the book value is $48 million. However, since the fair value is lower than the book value, an impairment loss needs to be recognized.
To calculate the impairment loss, we subtract the fair value of Centerpoint Inc. from its book value (including goodwill). Therefore, the amount of the impairment loss is $450 million - $402 million = $48 million.
Learn more about Impairment loss here:https://brainly.com/question/14802420
#SPJ11
Sunland Company has 10,000 shares of 8%, $100 par value, cumulative preferred stock outstanding at December 31, 2022. No dividends were declared in 2020 or 2021. If Sunland wants to pay $395,000 of dividends in 2022, what amount of dividends will common stockholders receive?
Answer:
The amount of dividends received by common stockholders is $155,000
Explanation:
The dividends to preferred shareholders is computed as:
Dividends to preferred shareholders = Shares × Price per share × 8% × Number of years
where
Shares are 10,000
Price per share is $100
Number of years is 3 (2020,2021 and 2022)
Putting the values above:
= 10,000 × $100 × 8% × 3
= $80,000 × 3
= $240,000
Now,
The amount of dividends received by common stockholders is computed as:
Amount = Dividends to be paid in year 2022 -Dividends to preferred shareholders
$395,000 - $240,000
= $155,000
The payment given by a corporation to its shareholders who are entitled to it is known as dividends. The board of directors (BODs) of a firm decides on dividend quantities and distributions.
[tex]\text{The amount of dividends received by common stockholders is} =[/tex] $[tex]155,000[/tex]
[tex]\text{The dividends to preferred shareholders is computed as:}[/tex]
[tex]\text{Dividends to preferred shareholders = Shares}[/tex] × [tex]\text{Price per share}[/tex] × [tex]8[/tex]% × [tex]\text{Number of years}[/tex]
[tex]\text{Where,}[/tex]
[tex]\text{Shares} = 10,000[/tex]
[tex]\text{Price per share} = $100[/tex]
[tex]\text{Number of years} = 3[/tex]
[tex]\text{ Substituting the values to the formula:}[/tex]
[tex]= 10,000[/tex] × [tex]100[/tex] × [tex]8[/tex]%
[tex]= 80,000[/tex] × [tex]3[/tex]
[tex]= 240,000[/tex]
[tex]\text{Now,}\\\\\text{The amount of dividends received by common stockholders is computed as:}[/tex]
[tex]\text{Amount} = 395,000 - 240,000\\\\\text{Amount = 155,000}[/tex]
For more information related to dividend payments, refer to the link:
https://brainly.com/question/14076997?referrer=searchResults
Rovinsky Corporation, a company that produces and sells a single product, has provided its contribution format income statement for November.Sales (5,700 units) $ 319,200Variable expenses 188,100Contribution margin 131,100Fixed expenses 106,500Net operating income $ 24,600If the company sells 5,300 units, its net operating income should be closest to:Multiple Choice$24,600$2,200$22,874$15,400
Answer:
$15,400
Explanation:
Please see attachment
If actual output exceeds potential output, the economy
A. is in neither a short-run nor long-run equilibrium.
B. is experiencing a recessionary gap.
C. may be in a long-run equilibrium but is not in a short-run equilibrium.
D. is experiencing an inflationary gap.
Answer:
D. Is experiencing an inflationary gap.
Explanation:
The potential output is the highest level of gross domestic product that can be sustained in the long term using full employment. If the actual output exceeds the potential output, then the output gap (the difference between the actual and the potential output) is positive, which means that the gross domestic product exceeds the trend. This implies that there will be inflationary pressures if we try to keep the gross domestic product in the new actual output level, since there would need to be an overtime employment of the workforce and all the resources would be fully used, so any expansion above that level would imply pressures on the economy.
A static budget is appropriate in evaluating a manager's performance if
actual activity closely approximates the master budget activity.
actual activity is less than the master budget activity.
the company is a not-for-profit organization.
the company prepares reports on an annual basis.
Answer:
The correct answer is letter "A": actual activity closely approximates the master budget activity.
Explanation:
A static budget includes projected values of inputs and outputs conceived before a company period begins. It estimates revenue and expenditure over a particular period which keeps the same with changes in business activity. It is also a helpful tool that allows rating the manager's performance by checking if the goals set in the master budget are being accomplished or not.
Edwards Enterprises follows a moderate current asset investment policy, but it is now considering a change, perhaps to a restricted or maybe to a relaxed policy. The firm's annual sales are $400,000; its fixed assets are $100,000; its target capital structure calls for 50% debt and 50% equity; its EBIT is $39,000; the interest rate on its debt is 10%; and its tax rate is 40%. With a restricted policy, current assets will be 15% of sales, while under a relaxed policy they will be 25% of sales. What is the difference in the projected ROEs between the restricted and relaxed policies?
Answer:
Please see attachment
Explanation:
Please see attachment
Jeff is approached by a salesperson. The salesperson fails to make a first impression and Jeff decides in the early minutes of the sales presentation itself that he will not buy anything from the salesperson.
Which of the following phenomena is observed here?
a. Central traits principle
b. Incremental effect
c. Primacy effect
d. Covariation principle
Answer:
Letter c is correct. Primacy effect.
Explanation:
The primacy effect is a phenomenon that describes about the preference that humans have over a first choice, that is, individuals generally have a preference for the first data they receive about something, than the next data. This effect is compared to the first impression, which is the initial perceptions we get from meeting someone that are difficult to change even over time.
A good strategy for salespeople is to bring their highest performing product on the first visit, to have a positive effect on customer expectations and encourage sales.
When Apple first introduced its iPhone in the U.S. market, it priced it at $600. Several months later, Apple reduced the price to $400. And several months after that, it reduced the price again to $200.
What pricing policy was Apple using in its initial price strategy?
A. introductory price
B. skimming price
C. cash discount price
D. penetration price
E. everyday low price
Answer:
B. skimming price
Explanation:
Skimming price -
It is the pricing method , which involves the company uses very high tag for a particular time as soon as it is launched in the market and as it time passes buy , the price of the particular product gets reduced , this process is known as skimming price .
This strategy helps to the product to stay in the market for long run , as time passes , the price of the particular commodity reduces and people can still buy it at a much lower price , in age where new products get launched daily .
Checkable deposits are money because
A. checks bounce when there are not enough funds to cash them.
B. they are guaranteed by banks.
C. only banks and other financial institutions can offer them.
D. they are protected by the Federal Reserve.
E. they can be converted into currency on demand and are used directly as a means of payment.
Checkable deposits are considered money because they can be converted into currency on demand and are used directly as a means of payment. Although some options mention aspects of checkable deposits, they do not describe why they are perceived as money.
Explanation:Checkable deposits are considered money because they can be converted into currency on demand and are used directly as a means of payment. This is option E from your choices. Checkable deposits are also known as demand deposits or transactional deposits. A distinguishing feature of a checkable deposit is that it allows for frequent transactions, including deposits, withdrawals, and transfers. These transactions can be carried out either through the use of checks, automated teller machines (ATMs), electronic debits, and other payment systems. This makes checkable deposits a highly liquid form of money.
Although options A to D say something about the nature and security attached to checkable deposits, these options do not explain why checkable deposits are money. For instance, the fact that banks guarantee deposits or that the Federal Reserve protects deposits does not make these deposits money. What makes them money is their liquidity and functionality as a method of payment.
Learn more about Checkable Deposits here:https://brainly.com/question/15763227
#SPJ6
Assume an economy begins with zero inflation, a 25 percent income tax rate, and a real interest rate of 4 percent. If inflation rises to 4 percent, the nominal interest rate becomes ________ percent and the after-tax real interest becomes ________ percent.
Answer:
8%
2%
Explanation:
Real interest rate is interest rate that has been adjusted for inflation . It is calculated as nominal interest rate - inflation rate.
Nominal interest rate is interest rate that has not been adjusted for inflation. It is calculated as real interest rate + inflation rate. The nominal interest rate is the more commonly quoted interest rate.
Nominal interest rate = 4%+4%=8%
After tax real interest rate = [nominal interest rate × ( 1 - tax rate )] - inflation rate
0.08 × (0.75) = 0.06 = 6%
6% - 4% = 2%
Last year, Kurt invested $1,000 in ABC stock, $1,000 in long-term government bonds, and $1,000 in U.S. Treasury bills. Over the course of the year, he earned returns of 10.3 percent, 8.8 percent, and 4.3 percent, respectively. What is the risk premium that Kurt received on his ABC stock investment?
Answer:
6%
Explanation:
Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States?
Check all that apply.
A. The variety of goods available to consumers Funds spent by city governments to renovate their buildings
B. The loss of enjoyment people incur when scenic land is converted to commercial use
C. The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government
D. When a U.S. company purchases and imports automotive parts from Canada to use to build cars within the United States, this purchase increases the component of GDP while also net exports by the same amount.
E. Therefore, the purchase of automotive parts from Canada causes in US GDP.
Answer
The answer and procedures of the exercise are attached in the image below.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Consider an economy with two types of firms, S and I. S firms always move together, but I firms
move independently of each other. For both types of firms there is a 20% probability that they
will have a 20% return and a 80% probability that they will have a -30% return.
What is the expected return for an individual firm?
A) -12%
B) -20%
C) 10%
D) 20%
Answer:
option (B) -20%
Explanation:
Data provided in the question:
Return Probability
20% 20%
-30% 80%
Now,
Expected return for an individual firm = ∑ (Return × Probability)
or
Expected return for an individual firm = ( 0.20 × 0.20 ) + ( -0.30 × 0.80 )
or
Expected return for an individual firm = 0.04 + ( - 0.24)
or
Expected return for an individual firm = - 0.2
or
Expected return for an individual firm = -20%
Hence,
The correct answer is option (B) -20%
Product B has revenue of $39,500, variable cost of goods sold of $25,500, variable selling expenses of $16,500, and fixed costs of $15,000, creating a loss from operations of $17,500.
Required:
1. Prepare a differential analysis as of May 9 to determine if Product B should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required.
2.
Determine if Product B should be continued (Alternative 1) or discontinued (Alternative 2).
Amount DescriptionsFixed
Income (loss)
Revenue
Total costs
Variable cost of goods sold
Variable selling and administrative expenses
1. Prepare a differential analysis as of May 9 to determine if Product B should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required.
Differential Analysis
Continue Product B (Alternative 1) or Discontinue Product B (Alternative 2)
May 9, 2016
1
Continue Product B
Discontinue Product B
Differential Effect on Income
2
(Alternative 1)
(Alternative 2)
(Alternative 2)
3
4
Costs:
5
6
7
8
9
2. Determine if Product B should be continued (Alternative 1) or discontinued (Alternative 2).
The company is indifferent since the result is the same regardless of which alternative is chosen.
Discontinued
Continued
Answer:
We should discontinue Product B
Explanation:
We should check if Product B generates a contribution or not:
We subtract from the sales revenues the variable cost:
revenue 39,500
variable cost of goods sold (25,500)
variable selling expenses (16,500)
Contribution (2,500)
As the contribution is negative, we should discontinue Product B as is less expensevely to stop production than continue.
A firm produces a product in a competitive industry and has a total cost function (TC) of TC(q) = 60 + 10q + 2q2 and a marginal cost function (MC) of MC(q) = 10 + 4q. At the given market price (P) of $20, the firm is producing 5.00 units of output Is the firm maximizing profit? No What quantity of output should the firm produce in the long run? The firm should produce 5unit(s) of output. (Enter your response as an integer.)
Answer:
Please see attachment
Explanation:
Please see attachment
Scenario: You are 30 years old and single. You have a moderate risk investment philosophy. You are interested in long-term investing, but you do not have sufficient funds to buy a variety of investments to be fully diversified and you do not feel you have the expertise to make good choices. Among the features that facilitate making investments in a mutual fund are: Check all that apply O Any interest, dividends, and capital gains can be automatically reinvested O As your objectives change, you can easily swap shares for another mutual fund within a mutual fund family ? A mutual fund investment can be inherited by a designated beneficiary without the need to go through probate O A check-writing feature The best mutual funds in which to invest are usually O no-load funds O front-load funds O back-end load funds A $2,000 investment in a mutual fund with a 8% front-end load will allow you to make a net investment of $2,160 $1,840 $1,680 You should review and rebalance your mutual fund investment never; the fund is rebalanced for you monthly annually quarterly A fund named "Fidelity Freedom Fund 2030 is a target-date fund designed O to automatically shift assets from moderate to aggressive as retirement age approaches O for someone retiring in 20 to 30 years. O to provide a no-hassle, set-it-and-forget-it approach to investing for retirement. O for someone between the ages of 20 and 30
Answer:
Check the following explanation
Explanation:
Features that facilitiate making investment in mutual funds are as follows:
Any interest, dividends and capital gains can be automatically reinvested.
As your objective change, you can easily swap shares of another mutual funds withing a mutual fund family.
A mutual fund can be inherited by a designated beneficiary without the need to be checked.
Answer - the best mutual funds to invest are usually
No load funds.
In no load funds the investor need not pay any amount in the form of commission or other charges while purchasing or selling the investments.
Answer- If we invest $2000 in a front end load with 8% interest rate then we will earn $1840 as $160( $2000 x 8%) will get deducted from the purchase amount and eventually reducing the investment size.
Answer- we should review and rebalance your mutual funds annually as if we do it too frequently it kight involve some costs and thus would turn out to be less profitable.
Answer- It shifts assets from moderate to more risky as the retirement age approaches because it will help in increasing the income of the investor when he retires as at retirement he or she might start withdrawing his or her money.
Misty McDougall is the manager of the Zachary Bagel Shop. The corporate office had budgeted her store to sell 2,900 ham sandwiches during the week beginning July 17. Each sandwich was expected to contain 7 ounces of ham. During the week of July 17, the store actually sold 3,400 sandwiches and used 24,400 ounces of ham. The standard cost of ham is $0.20 per ounce. The variance report from company headquarters showed an unfavorable materials usage variance of $820. Ms. McDougall thought the variance was too high, but she had no accounting background and did not know how to register a proper objection.
Answer:
The report is incorrect the direct materials quantity variance should be unvaforable for 120 dolllars not 820.
Explanation:
We are going to verify the materials quantity variance:
[tex](standard\:quantity-actual\:quantity) \times standard \: cost = DM \: quantity \: variance[/tex]
std quantity 23,800.00 (3,400 sandwiches x 7 ounces each)
actual quantity 24,400.00
std cost $0.20
[tex](23,800 - 24,400) \times 0.20 = DM \: quantity \: variance[/tex]
difference -600.00
We use 600 extra ounces thus, the variance will be negative
We multiply by each ounce standard cost to obtain the quantity variance:
quantity variance $(120.00)
The manager is concerned about the high materials usage variance in the bagel shop.
Explanation:The subject of this question is Business and the grade level is College.
The manager of the Zachary Bagel Shop is concerned about the unfavorable materials usage variance. In this case, the variance refers to the difference between the standard usage (based on the budget) and the actual usage of ham during the week. The $820 unfavorable variance indicates that more ham was used than budgeted.
To address the high variance, the manager can investigate the reasons for the increase in ham usage. It could be due to factors such as incorrect portion sizes, wastage, or theft. By identifying the source of the variance, the manager can take corrective actions to minimize future variances and align with the budgeted costs.
Learn more about Unfavorable materials usage variance here:https://brainly.com/question/4616543
#SPJ3
Indicate whether each of the following is an example of an automatic stabilizer or discretionary fiscal policy. The government increases the top income tax bracket to 35%. The tax rate paid by an individual falls from 20% to 15% when his pay is reduced during a recession. A person qualifies for unemployment compensation when she loses her job during a recession.
Answer:1.. Discretionary fiscal policy.
2. Automatic stabilizer
3. Automatic stabilizer
Explanation:
An automatic stabilizer are in built economy policy that are already in existence to tackle economy issues as it relates to recession and expansion in the economy.
An increase in tax rate is a new directive taken to curtailed expansionary drive in the economy after his occurence.
A fall in tax rate from 20 to 15 during recession is the already existing progressive tax rate that takes more tax during expansion and less during recession.
The unemployment compensation is also an inbuilt policy to tackle a recession issue.
A machine with a cost of $144,000, current year depreciation expense of $20,500 and accumulated depreciation of $92,000 is sold for $45,600 cash. The total amount that should be reported in the operating section of the statement of cash flow in, indirect method is: a. $20,500. b. $4,560. c. $66,100. d. $18,900. e. $26,900.
Answer:
a. $20,500
Explanation:
The cashflow using the indirect method has basically 3 segments namely; Cashflow from operating activities, Cashflow from investing activities and Cashflow from financing activities.
Cashflow from operating activities considers the net profit before tax and then adjustments for non cash items like depreciation. Hence from the question given, the current year depreciation ($20,500) is a part of the Cashflow from operating activities.
Other cost elements stated in the question are considered under investing activities.
You own a portfolio of two stocks, A and B. Stock A is valued at $6,500 and has an expected return of 11.2 percent. Stock B has an expected return of 8.1 percent. What is the expected return on the portfolio if the portfolio value is $9,500?
Answer:
he expected return on the portfolio =10.22%
Explanation:
You obviously want to know the expected return of your portfolio. Its projected performance and the overall profit or loss. Anticipated yield is just that it is not guaranteed, as it is based on historic returns and used to generate prospects, but it is not a prediction. Please refer to the formula for “The expected return on the portfolio”
The expected return on the portfolio = 11.2%*6500/9500 + 8.1 %*( 9500-6500)/9500 = 10.22%
Debt Management Ratios You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), both of which operate in the same industry. LotsofDebt, Inc. finances its $30 million in assets with $29 million in debt and $1 million in equity. LotsofEquity, Inc. finances its $30 million in assets with $1 million in debt and $29 million in equity. Calculate the debt ratio and equity multiplier for the two firms.
The debt ratio and equity multiplier for LotsofDebt, Inc. are 96.67% and 30, respectively, indicating high leverage. For LotsofEquity, Inc., these ratios are 3.33% and approximately 1.03, suggesting a conservative financial structure with low leverage.
Explanation:Debt Management Ratios Calculation
To calculate the debt ratio and the equity multiplier for both LotsofDebt, Inc. and LotsofEquity, Inc., we can use the following formulas:
Debt Ratio = Total Debt / Total AssetsEquity Multiplier = Total Assets / Total EquityFor LotsofDebt, Inc.:
Debt Ratio = $29 million / $30 million = 0.9667 or 96.67%Equity Multiplier = $30 million / $1 million = 30For LotsofEquity, Inc.:
Debt Ratio = $1 million / $30 million = 0.0333 or 3.33%Equity Multiplier = $30 million / $29 million = 1.0345 or approximately 1.03These ratios indicate that LotsofDebt, Inc. is highly leveraged with a much higher proportion of debt financing, whereas LotsofEquity, Inc. uses primarily equity to finance its assets.
A portfolio has three stocks 300 shares of Yahoo (YHOO), 300Shares of General Motors (GM),
and 80 shares of Standard and Poorʹs Index Fund (SPY). If the price of YHOO is $20, the price of
GM is $30, and the price of SPY is $150, calculate the portfolio weight of YHOO and GM.
A) 11.1%, 20.0%
B) 16.7%, 28.3%
C) 22.2%, 33.3%
D) 22.2%, 43.3%
Answer:
c. 22.2%, 33.3%
Explanation:
Portfolio weight of each investment equals division of total value of each investment to total value of portfolio.
Portfolio weight of YHOO = (300×$20)/(300*$20 +300× $30 + 80×150)= 0.222= 22%Portfolio weight of GM = (300×$30)/(300*$20 +300× $30 + 80×150)= 0.333= 33%For a variety of reasons, a bank sometimes will hold more reserves than is legally required. These reserves are known as excess reserves. How does holding excess reserves affect the money supply? Choose one:
(A) The money supply will increase as banks loan out more money.
(B) The money supply will increase as banks hold more vault cash.
(C) The money supply will increase as a bank’s vault cash falls.
(D) The money supply will decrease as banks loan out less money.
(E) There is no impact. The level of deposits and loans will be unaffected.
Option D , The money supply will decrease as banks loan out less money.
Explanation:
Banks are lending their deposits and increasing the economic supply of money. Nevertheless, if the bank holds more money and invests less then the supply of money into the economy rises.
Conversely, the ratio increased, boosted, lowered the cash multiplier, and decreased the supply of money. Expansionary fiscal policy is the decrease in the necessary reserve ratio; contraction monetary policy is the rise in the reserve ratio.
When attempting to control the monetary supply, the Fed has two challenges. Firstly, the Federal does not regulate the amount of cash families want to keep in their accounts as deposits. The second problem seems to be that the banks ' capital is not verified by the Fed. If the banks opt for more excess reserves and deposits, the sum of money will be lower.
Excess reserves held by a bank decrease the money supply because this money is not being loaned out to stimulate economic activity. Therefore, the money supply will decrease as banks loan out less money.
Explanation:When a bank holds excess reserves, it means it is retaining more money than it is legally obligated to. This action directly impacts the money supply in the economy. The correct answer is (D) The money supply will decrease as banks loan out less money.
Here's why: Banks loan out their reserves to borrowers, and these loans enter the economy as new money, which increases the money supply. When banks hold back some of their reserves, they reduce the amount of loans they can make, which in effect decreases the potential money supply. Instead of being used for loans that could stimulate economic activity, these funds are being held back, thus effectively reducing the total money supply.
Learn more about excess reserves here:https://brainly.com/question/31633083
#SPJ6
Lisa sells business property with an adjusted basis of $237,800 to her son, Alfred, for its fair market value of $190,240.
If an amount is zero, enter "0".
a. What is Lisa's realized and recognized gain or loss?
b. What is Alfred's recognized gain or loss if he subsequently sells the property for $261,580? For $154,570?
Answer:
a. Lisa's realized and recognized gain or loss is unknown
b. Alfred's recognized gain of $71,340 if he subsequently sells the property for $261,580
Alfred's recognized loss of $35,670 if he subsequently sells the property for $154,570
Explanation:
a. We do not know the amount Lisa costed to buy this business property, thus can't define her gain or loss.
b. Alfred cost $190,240 to buy this property, the he will gain if sell higher or lost if sell lower.
The gain $71,2340 = selling price $261,580 - cost $190,240
The loss $35,670 = selling price $154,570 - cost $190,240
In October, Glazier Inc. reports 42,000 actual direct labor hours, and it incurs $194,000 of manufacturing overhead costs. Standard hours allowed for the work done is 40,000 hours. Glazier’s predetermined overhead rate is $5.00 per direct labor hour.
Compute the total manufacturing overhead variance. Identify whether the variance is favorable or unfavorable? Total manufacturing overhead variance $
Final answer:
The total manufacturing overhead variance is $-16,000, which is unfavorable.
Explanation:
To compute the total manufacturing overhead variance, we need to calculate the difference between the actual manufacturing overhead costs and the standard manufacturing overhead costs allowed. The actual manufacturing overhead costs are given as $194,000, while the standard manufacturing overhead costs allowed is $5.00 per direct labor hour multiplied by 42,000 actual direct labor hours, which equals $210,000. The total manufacturing overhead variance is the difference between these two amounts:
Total manufacturing overhead variance = Actual manufacturing overhead costs - Standard manufacturing overhead costs allowed = $194,000 - $210,000 = -$16,000
The total manufacturing overhead variance is unfavorable because the actual manufacturing overhead costs are lower than the standard manufacturing overhead costs allowed.
The total manufacturing overhead variance is $6,000, and it is favorable.
Explanation and Calculation
To compute the total manufacturing overhead variance, we need to compare the actual manufacturing overhead costs incurred with the applied manufacturing overhead costs based on the standard hours allowed for the work done.
Given Data:
- Actual direct labor hours: 42,000 hours
- Actual manufacturing overhead costs: $194,000
- Standard hours allowed for the work done: 40,000 hours
- Predetermined overhead rate: $5.00 per direct labor hour
Step-by-Step Calculation:
1. Calculate the Applied Overhead:
The applied overhead is based on the standard hours allowed for the actual work done.
[tex]\[ \text{Applied Overhead} = \text{Standard Hours} \times \text{Predetermined Overhead Rate} \][/tex]
[tex]\[ \text{Applied Overhead} = 40,000 \, \text{hours} \times \$5.00 \, \text{per hour} = \$200,000 \][/tex]
2. Calculate the Total Overhead Variance:
The total overhead variance is the difference between the actual overhead costs incurred and the applied overhead.
[tex]\[ \text{Total Overhead Variance} = \text{Actual Overhead} - \text{Applied Overhead} \][/tex]
[tex]\[ \text{Total Overhead Variance} = \$194,000 - \$200,000 = -\$6,000 \][/tex]
Since the variance is negative, it indicates that the actual overhead costs were less than the applied overhead costs, meaning the variance is favorable.