Gainesville Cigar stocks Cuban cigars that have variable lead times because of the difficulty in importing the product: lead time is normally distributed with an average of 6 weeks and a standard deviation of 2 weeks. Demand is also a variable and normally distributed with a mean of 200 cigars per week and a standard deviation of 25 cigars.
a) For a 90% service level, what is the ROP?
b) What is the ROP for a 95% service level?
c) Explain what these two service levels mean. Which is preferable?
Answers
Answer:
Please see attachment
Explanation:
Please see attachment
Final answer:
For a 90% service level, the ROP is approximately 1207.23 cigars. For a 95% service level, the ROP is approximately 1208.21 cigars. The service level represents the probability of satisfying demand during the lead time, with a higher service level indicating a lower risk of stockouts and unmet customer demand.
Explanation:
a) For a 90% service level, the ROP can be calculated using the formula:
ROP = (Demand × Lead time) + Z × √(Demand Variance × Lead time Variance)
where Z is the Z-score corresponding to the desired service level. For a 90% service level, Z is approximately 1.28. Plugging in the values, we have:
ROP = (200 cigars/week × 6 weeks) + 1.28 × √(25 cigars^2/week × 2 weeks^2) = 1200 cigars + 7.23 cigars = 1207.23 cigars
b) For a 95% service level, we use Z = 1.645 (corresponding to a 95% confidence interval). Plugging in the values as before:
ROP = (200 cigars/week × 6 weeks) + 1.645 × √(25 cigars^2/week × 2 weeks^2) = 1200 cigars + 8.21 cigars = 1208.21 cigars
c) The service level represents the probability that demand will be satisfied during the lead time. A higher service level indicates a lower risk of stockouts and unmet customer demand. In this case, the 95% service level is preferable as it provides a higher degree of confidence in satisfying customer demand.
Related Questions
the origin of life broadly conforms to the Oparin-Haldane model, then early in life's origin there was not a distinction between genotype and phenotype. Describe at least two features that distinguish genotype from phenotype (2). At what stage in the evolution of life would it have been possible to make this distinction (1)? Explain your answer. (2)
Answers
Answer:
Phenotypes are the visible characteristics of an organism. In the case of humans, phenotypes are determined by things like eye color, hair color, hair texture, or skin color.
Genotype is the total genes, or genome, of an organism, whether they are expressed or not, visibile or not.
For example, a brown-eyed person can have both a dominant gene encoding for brown eye color, and a recessive gene encoding for blue eye color. Phenotypically, this person has brown eyes, but his genotype includes both brown eyes genes and blue eyes genes.
Phenotype could have been distinguished from genotype when the firs multicellular organisms emerged.
Which of the following is true of diversity in the workplace? Multiple Choice Fewer American employees are working as expatriates in foreign countries. An increasingly diverse workforce decreases the economic output of a country. Remaining a member of the workforce is detrimental to the health of older workers. The average age of the workforce is decreasing as the baby boomer generation nears retirement. Diversity makes it more challenging to retain valued employees by reducing affective and continuance commitment.
Answers
Answer:
Diversity makes it more challenging to retain valued employees by reducing affective and continuance commitment.
Explanation:
Diversity describes that the employees are not homogeneous rather they are in variety who do not match at all. As there are different kind of people in the workplace, it becomes difficult to manage.
Accordingly it also affects the performance of company, as there will be many employees who are not determinant and thus, might not perform well.
Accordingly the effective employees also tries to switch to some other companies which will benefit them and those having better employees.
Thus, there is a problem to retain skilled employees.
Final answer:
The impact of diversity in the workplace is generally positive, enhancing economic output and not necessarily making employee retention more challenging. The correct observation regarding the workforce is that it is aging due to the baby boomer generation's impact, not decreasing in average age.
Explanation:
The question surrounds the impact of diversity in the workplace, with various options presenting common misconceptions or inaccurate statements regarding workforce dynamics. Considering the options provided, most can be quickly dismissed due to factual inaccuracies. For example, an increasingly diverse workforce is generally seen to enhance, not decrease, the economic output of a country by bringing in a variety of perspectives and skills. Similarly, remaining a member of the workforce can be beneficial to the health of older workers, providing them with continued purpose, social interaction, and mental engagement.
The correct answer is related to the effects of the baby boomer generation on the workforce. Contrary to the decreasing average age of the workforce, what we actually observe is an aging workforce as the baby boomer generation delays retirement and remains active in the job market. This trend contributes to a diverse workforce in terms of age, which can bring challenges but also significant advantages in terms of experience, stability, and mentorship opportunities.
In terms of employee retention and the impact of diversity, a well-managed diverse workforce can increase both affective and continuance commitment by making employees feel valued and understood, contrary to the option suggesting that diversity makes retention more challenging.
Beta of common stock = "1.7" Treasury bill rate = 4% Market risk premium = 7.0% Yield to maturity on long-term debt = 7% Book value of equity = $390 million Market value of equity = $780 million Long-term debt outstanding = $780 million Corporate tax rate = 21%
What is the company's WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Answers
Answer:
10.72%
Explanation:
Firstly, we need to calculate cost of equity using capital pricing model (CAPM):
Cost of equity = Risk-free rate + Beta x Market risk premium
= 4% + 1.7 x 7% = 15.9%
Note: Treasury bill rate is used as a proxy for risk-free rate in this case.
Then, we will calculate weighted average cost of capital (WACC) as below:
Weighted average cost of capital = Debt weight in capital structure x Pre-tax cost of debt x (1 - tax rate) + Equity weight in capital structure x Cost of equity
= [780/(780 + 780)] x 7% x (1 - 21%) + [780/(780 + 780)] x 15.9%
= 10.72%
Note: Yield to maturity on long-term debt is used as a proxy for pre-tax cost of debt in this case. Weights used in WACC calculation have to be based on market value.
So, the company WACC is 10.72%.
An investment project provides cash inflows of $1,175 per year for eight years. a. What is the project payback period if the initial cost is $3,900? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. What is the project payback period if the initial cost is $4,950? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. What is the project payback period if the initial cost is $10,400?
Answers
Answer:
A. 3.32 years
B. 4.21 years
C. No payback period
Explanation:
The payback period calculates the amount of time it takes the cumulative cash flows to equal the amount invested .
The attached tables, calculates how the pay back periods are calculated.
For the project with an investment of $3900, the payback period = 3 years + 375 / 1175 Years = 3.32 years
For the project with an investment of $4950, the payback period = 4 years +250 / 1175 Years = 4.21 years
For the project with an investment of $10,400, there is no payback.
Star Bank provided cash to a customer, J. Brown, to pay for a building. Star required that Brown also sign a(n)_____________ (mortgage/installment/bond) note payable, which allows the bank to be paid by the cash proceeds of the sale of the building if Brown fails to pay on the note.
Answers
Answer: Mortgage
Explanation: Mortgage is a legal debt instrument signed by a borrower to the lender for credit to purchase a property.
Mortgage is a secured loan which the security is the property being bought.
On the event of non payment of the loan, the property is sold and money realised is used in paying the lender the principal amount as well as accrued interest on the loan.
Final answer:
Star Bank required J. Brown to sign a mortgage note payable when providing cash for a building purchase, which allows the bank to sell the building if Brown defaults on the loan. A mortgage is a loan secured by real property which the lender can sell to satisfy the debt if the borrower fails to pay.
Explanation:
Star Bank provided cash to a customer, J. Brown, to pay for a building. Star required that Brown also sign a mortgage note payable. A mortgage is specifically designed for loans secured by real estate, where the property serves as collateral to the loan. If J. Brown fails to make payments according to the terms of the note, the bank has the legal right to be paid by selling the secured property, in this case, the building.
A promissory note is essentially an IOU that indicates a promise to pay a certain amount under specified terms. It's a common financial instrument in both personal and business transactions. Mortgages often involve monthly instalments, which include principal and interest payments. If a firm or an individual cannot meet their loan obligations, the lender, such as a bank, can enforce the sale of the collateral, and in this context, it's real estate to recoup the lent amount.
Many observers believe that the levels of pollution in our society are too high. True or False: If society wishes to reduce overall pollution by a certain amount, it is efficient to have firms with highest profit bearing the largest burden of reducing pollution and firms with lowest profit bearing the least burden.
a. True
b. False
Which of the following statements is true about command-and-control approaches to reducing pollutions? Check all that apply.
a. Command-and-control approaches often rely on uniform reductions among firms
b. Command-and-control approaches are efficient because they ensure each firm reduces the mandated amount of pollution.
c. Command-and-control approaches are generally unable to target the firms that should undertake bigger reductions.
Answers
Answer:
First question: the given statement is false.
Second question: options a and c are correct.
Explanation:
If a society whishes to reduce overall pollution by a certain amount, then it is efficient when different firms reduce pollution by different amounts. This is because the cost of reducing pollution differs across the firms.
------
The CAC policy is inefficient because they rely on mandated uniform reductions. A firm will not reduce emissions more than the mandated amount because there is no incentive to do so. Since, the reductions are uniform, it is not able to target the firms that require bigger reductions.
It is not necessarily efficient for more profitable firms to bear a greater pollution reduction burden. Command-and-control approaches to reducing pollution often rely on uniform regulations, and cannot target specific firms for greater reductions.
Explanation:The assertion that it is efficient to have firms with the highest profit bearing the largest burden of reducing pollution and firms with the lowest profit bearing the least burden is False. While it may seem intuitive that larger, more profitable companies should bear a greater burden, this may not be the most efficient way to reduce pollution overall. Efficiency in reducing pollution often involves the cost-effectiveness of reduction strategies, which may not directly correlate with a firm's profitability.
Regarding command-and-control approaches to reducing pollution, the statements that are true are: a. Command-and-control approaches often rely on uniform reductions among firms, and c. Command-and-control approaches are generally unable to target the firms that should undertake bigger reductions. This is because command-and-control approaches typically apply the same regulations to all firms, irrespective of their individual circumstances, and are unable to differentiate which firms should reduce more based on factors such as pollution level, reduction cost, and profitability.
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The kitchen at a major corporation’s managed services business account includes several gas and electric stoves, ovens,broilers, steamers, grills, and other appliances, On average, the kitchen serves 500 lunches. At 10:15 AM. on a Tuesday inDecember, a gas leak prompts the gas company to cut off the gas supplyDiscussion Question1. What can be done to offerthe best possible lunch food and service?
Answers
Answer:
Consider the following explanation.
Explanation:
As the case suggest that there has been a gas leak and as a precautionary measure company has cut off the gas line which is going to affect lunch service. There can be three options to resolve this and continue to provide great food and service which are as follows:
1. Buy gas cilinders.
2. Cook the food at a different location and serve in the said major corporation.
3. Foods which will not require such as cold meat sandwiches can be served. Also there can be two options in both toasted and fresh as toaster runs on electricity. Moreover, range of salads can be served as well.
In response to a gas leak, a kitchen should utilize electric appliances and adjust recipes to maintain operations. Staff should focus on their specializations to sustain efficiency, and management should oversee the adaptations while keeping customers informed.
When faced with a gas leak that causes the gas supply to be cut off, a kitchen at a corporation's managed services business must adapt quickly to ensure that the best possible lunch food and service is still provided to its customers. Since the kitchen serves 500 lunches on average, it's essential to have a crisis management plan. To compensate for the loss of gas-powered equipment, such as stoves and ovens, the kitchen can maximize the use of electric appliances like electric steamers, grills, and ovens.
The people working behind the cash register and in the kitchen need to coordinate efficiently during this disruption. They could offer pre-prepared or easier-to-make meals such as sandwiches, salads, and soups that don't require gas for preparation. Additionally, kitchen staff should prioritize cooking with equipment that relies on electricity, such as rice cookers for side dishes or electric broilers for meats. In responding to the gas cut-off, the business manager should oversee the swift changes in the kitchen operations, while the staff at the front ensure customers are informed about any changes to the menu and service.
In our aggregate expenditure model we assume that:
O individual firms’ prices are flexible but the price level is fixed.
O both individual firms’ prices and the price level are flexible.
O both individual firms’ prices and the price level are fixed.
O individual firms’ prices are fixed but the price level is flexible
Answers
Answer:
The correct answer is regarding the model, is that an individual firms prices are flexible but the level of the price is fixed.
Explanation:
The aggregate expenditure model is the model in which the sum or total of all the expenditures are undertaken in the economy with the factors during the particular time period.
The equation is:
AE = C (Consumption) + I (Investment) + G (Government) + NX (Net Exports)
In this model, it is assumed that the prices of the individual firm are flexible whereas the price level is fixed.
In our aggregate expenditure model, we assume that individual firms' prices are flexible but the price level is fixed. The correct option is O individual firms’ prices are flexible but the price level is fixed.
Focus on Total Spending: The aggregate expenditure model analyzes fluctuations in economic activity by focusing on the total amount of spending in the economy.
Fixed Price Level: It assumes that the overall price level in the economy is relatively stable or fixed in the short run.
Changes in Real Output: With a fixed price level, changes in nominal spending primarily lead to changes in real output rather than changes in the price level.
Flexibility of Individual Firm Prices: Despite the fixed price level assumption, individual firms can adjust their prices in response to changes in demand for their specific goods or services.
Relative Price Adjustments: This flexibility allows for relative price adjustments, aiding in market clearing for individual goods.
Limited Impact on Aggregate Price Level: Although individual firms can adjust prices, the aggregate price level is not significantly affected in the short run due to nominal rigidities and the assumption of a fixed price level. Therefore, the correct option is O individual firms’ prices are flexible but the price level is fixed.
An increase in the minimum wage:
a. increases both the quantity demanded and the quantity supplied of labor.
b. decreases both the quantity demanded and the quantity supplied of labor.
c. increases the quantity of labor demanded but decreases the quantity of labor supplied.
d. decreases the quantity of labor demanded but increases the quantity of labor supplied.
Answers
Answer:
An increase in the minimum wage:
d. decreases the quantity of labor demanded but increases the quantity of labor supplied.
Explanation:
An increase in the minimum wage impact negativly in the demand of labor because each hour it's now more expensive than before, it means that company will looks to reduce their number of headcont due to an increase in each hour of labor existing, all of these just to keep the company cost at the same level.
The increase in the quantity of labor supplied it's favorable because a lot of people will be motivated to look for a job because the company will have to pay better salaries than before, on this escenario more people will go to the market labor looking for a job.
This increase in the labor supply is for those who were not willing to work under the previous salary conditions.
Marina Corp. applied overhead to jobs during the period as follows: Jobs finished and sold $ 46,000 Jobs started and in process 54,000 Jobs finished and unsold 100,000 The application of overhead has resulted in a $5,600 credit balance in the Factory Overhead account. The entry to dispose of this remaining factory overhead balance is:
A) No entry is needed.
B) Debit Factory Overhead $5,600; credit Cost of Goods Sold ss,600.
C) Debit Factory Overhead $5,600; credit Work in Process Inventory $5,600.
D) Debit Work in Process Inventory $5,600; credit Factory Overhead $5,600.
E) Debit Cost of Goods Sold $5,600; credit Factory Overhead $5,600
Answers
Answer:
Explanation:
The journal entry is shown below:
Factory Overhead A/c Dr $5,600
To Cost of Goods Sold A/c Dr $5,600
(Being the over applied overhead balance is recorded)
For recording the remaining balance we debited the factory overhead account and credited the cost of goods sold account.
All other information which is given is not relevant. Hence, ignored it
James is employed by a large corporation with 400 employees. The corporation provides its employees with a no-cost gym membership in their building. The value of the membership is $60/month . The gym is used exclusively by the employees and their families. How much, if any, must James include in his yearly gross income related to this fringe benefit?
$0.
$60.
$600.
$720.
Answers
Answer:
$0
Explanation:
James should not include any amount related to this fringe benefit in his yearly gross income. Since the employer provides the benefit in their own premises, and the gym is of exclusive use of employees and their families, employees are exempt of including their gym fees in their yearly gross income. If this was a public gym, then the full amount of the yearly membership would have to be included.
Emily purchased a building to store inventory for her business. The purchase price was $760,000. Emily also paid legal fees of $300 to acquire the building.
In March, Emily incurred $2,000 to repair minor leaks in the roof (from storm damage earlier in the month) and $5,000 to make the interior suitable for her finished goods.
What is Emily’s cost basis in the new building?
Answers
Answer:
Please see attachment
Explanation:
Please see attachment
Golden Enterprises started the year with the following: Assets $111,000; Liabilities $39,000;Common Stock $69,000; Retained Earnings $3,000.During the year, the company earned revenue of $5,900, all of which was received in cash, and incurred expenses of $3,450, all of which were unpaid as of the end of the year. In addition, the company paid dividends of $1,900 to owners. Assume no other activities occurred during the year.What was the amount of net income for the year?A. $2,450B. $5,900C. $3,450D. $1,900
Answers
Answer:
Option A.
Explanation:
Given information:
Assets = $111,000
Liabilities = $39,000
Common Stock = $69,000
Retained Earnings = $3,000
Revenue = $5,900
Incurred expenses = $3,450
Dividends = $1,900
We need to find the amount of net income for the year.
Formula for net income is
Net income = Total revenue - Total expenses
= $5,900 - $3,450
= $2,450
The amount of Golden's net income for the year is $2,450.
Therefore, the correct option is A.
Answer: The answer is C $3,450
Explanation:
Journal entry
Dr Cr
$ $
Asset. 111,000
Common Stock. 69,000
Revenue 5,000
Less: Expenses (3,450)
----------------
1,550
Retained earning 3,000
Liabilities 39,000
Dividend 1,900
Balance c/d 3,450
------------------ ---------------------
114,450 114,450
--------------------- -------------------------
As a long-term investment at the beginning of the 2018 fiscal year, Florists International purchased 30% of Nursery Supplies Inc.'s 8 million shares for $56 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $40 million and distributed cash dividends of $1.25 per share. At the end of the year, the fair value of the shares is $52 million.
Required:
Prepare the appropriate journal entries from the purchase through the end of the year.
Answers
Answer:
Please see attachment
Explanation:
Please see attachment
Sterling, Inc. reports the following financial information for its sports clothing segment. Average operating assets $3,064,000 Controllable margin $643,440 Minimum rate of return 7 % Compute the return on investment and the residual income.
Answers
Answer:
Return on investment = 21%
Residual Income = $428,960
Explanation:
Average operating assets (AOA) = $3,064,000
Controllable margin (CM) = $643,440
Minimum rate of return (MRR) = 7 %
The return on investment is the ratio between the controllable margin (CM) and the average operating assets (AOA):
[tex]ROI = \frac{CM}{AOA} =\frac{643,440}{3,064,000} \\ROI = 0.21 =21\%[/tex]
The residual income is given by:
Residual Income = CM - (MRR × AOA)
[tex]RI=643,440 -(0.07*3,064,000)\\RI=\$428,960[/tex]
a. Paid $40,000 cash to replace a compressor on a refrigeration system that extends its useful life by four years.b. Paid $200 cash per truck for the cost of their annual tune-ups.c. Paid $175 for the monthly cost of replacement filters on an air-conditioning system.d. Completed an addition to an office building for $225,000 cash.1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2. Prepare the journal entries to record transactions a and d.
Answers
Transactions (a) and (d) are capital expenditures while (b) and (c) are revenue expenditures. The journal entries for transactions (a) and (d) deduct the cash while crediting the respective equipment and building accounts.
Explanation:The transactions mentioned are classified as either capital expenditure or revenue expenditure.
Transaction (a) relates to the replacement of a major component of a refrigeration system which extends its useful life by four years; thus it is a capital expenditure.
Transaction (b) is a regular maintenance cost, therefore it is a revenue expenditure.
Transaction (c), involving the replacement filters of an air-conditioning system, is also a revenue expenditure as it pertains to a regular operational expense.
Transaction (d) is a capital expenditure because it results in an improvement to an office building.
The journal entries to record transactions (a) and (d) will be:
Journal Entry for Transaction (a):Dr. Equipment (Compressor) - $40,000
Cr. Cash - $40,000Journal Entry for Transaction (d):
Dr. Building (Addition) - $225,000
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Walters manufactures a specialty food product that can currently be sold for $22.90 per unit and has 20,900 units on hand. Alternatively, it can be further processed at a cost of $12,900 and converted into 12,900 units of Deluxe and 6,900 units of Super. The selling price of Deluxe and Super are $30.90 and $20.90, respectively. The incremental net income of processing further would be:
Answers
Answer:
Increamental net income = $529,920-$478.610 = $51310
Explanation:
Total sales revenue before the further processing = $22.9 * 20,900 =
$478.610
Total net sales revenue after the further processing = ($30.9 *12900)+($20,9*6900)-$12,900 = $529,920
Increamental net income = $529,920-$478.610 = $51310
Schedule M–1 of Form 1120 is used to reconcile financial accounting net income with taxable income reported on the corporation’s income tax return as follows: Net income per books + Additions - Subtractions = Taxable income. Classify the following items as additions or subtractions in the Schedule M–1 reconciliation.
A. Life insurance proceeds received upon death of covered executive.
B. Tax depreciation in excess of book depreciation.
C. Federal income tax per books.
D. Capital loss in excess of capital gain.
E. Charitable contributions in excess of taxable income limitation.
F. Premiums paid on life insurance policies covering executives (corporation is beneficiary).
G. Domestic production activities deduction.
Answers
Answer:
Explanation:
The following items were deducted and added in the Schedule M–1 reconciliation
Additions:
C. Federal income tax per books.
D. Capital loss in excess of capital gain.
F. Premiums paid on life insurance policies covering executives (corporation is beneficiary).
Subtractions:
A. Life insurance proceeds received upon death of covered executive.
B. Tax depreciation in excess of book depreciation.
E. Charitable contributions in excess of taxable income limitation.
G. Domestic production activities deduction.
Final answer:
Schedule M-1 of Form 1120 is used to reconcile financial accounting net income with taxable income reported on the corporation's income tax return.
Explanation:
Schedule M-1 of Form 1120 is a tax form used by corporations in the United States to reconcile the differences between financial accounting income and taxable income. It provides a detailed breakdown of adjustments made to align these two income figures. The given items can be classified as follows:
Addition: Life insurance proceeds received upon death of covered executive.Subtraction: Tax depreciation in excess of book depreciation.Addition: Federal income tax per books.Addition: Charitable contributions in excess of taxable income limitation.Subtraction: Capital loss in excess of capital gain.Addition: Premiums paid on life insurance policies covering executives (corporation is beneficiary).Addition: Domestic production activities deduction.When a firm has international operations, choosing the most appropriate structure depends upon the extent of international expansion, the type of strategy, and the degree of market diversity. True False
Answers
Answer:
False.
Explanation:
In deciding which structure is most appropriate for a company with international operations to adopt, some factors must be considered, namely: The extent of international expansion, whether the strategy used by the company will be global, transnational or multi-domestic, and the degree of product diversity, which directly influences the decision of which structure will suit the effective management of the organization's existing product chain.
Snow Valley Ski Resort has been contracting snow removal from its parking lots at a cost of $350/day. A snow-removal machine can be purchased for $27,000. The machine is estimated to have a useful life of 6 years with a zero salvage value at that time. Annual costs for operating and maintaining the equipment are estimated to be $7,000. Determine the break-even value for the number of days per year that snow removal is required in order to justify purchasing the snow-removal machine. MARR is 12%/year.
Answers
Answer:
The number of days needs to be found is 39 days
Explanation:
The number of days per year the machine is used that brings the Snow Valley Ski Resort to break-even for the two alternative ways given in the question is the number of days that equalized the net present value of the two alternatives being discounted at MARR 12%.
Net Present value of alternative 1 : Buying the machine ; calculated as below
Cost of buying the machine + annual cost of operating and maintaining = -27,000 - (7,000/12%) x (1-1.12^-6) = $-55,779.85
Net Present value of alternative 2: Renting the machine; which is the present value of annual renting cost for 6 years period. Annual renting cost is denoted as $(350 x n) with n is the number of days in use. Thus, net present value is calculated as: (-350n/ 0.12) / ( 1 - 1.12^-6)
As explained above, the number of days to bring to break-even point is:
(350n/ 0.12) x ( 1 - 1.12^-6) = 55,779.85 <=> 350n = 13,567.1 <=> n = 39 days.
Conversion privileges, offered by many mutual fund families, refer to the ability to:_________________.
A. automatically convert dividends and capital gains into more shares in the fund.
B. switch from one fund to another within the same family, often without paying a commission.
C. redeem mutual fund shares for cash.
D. switch from one fund to another in the same family without incurring any tax liability.
Answers
Answer:
The correct answer is letter "B": switch from one fund to another within the same family, often without paying a commission.
Explanation:
Conversion privileges or exchange privileges are opportunities for mutual fund investors to change from one fund to another fund in the same family. Most fund companies will charge investors a reasonably low fee or in some cases, there are no charges at all.
Acme Manufacturing makes their preliminary economic studies using a before-tax MARR of 17%.More detailed studies are performed on an after-tax basis. If their effective tax rate is 22%, what is the after-tax MARR?
Answers
Answer:
The after-tax MARR is 13.26%
Explanation:
After - tax MARR = Before tax MARR*(1 - tax rate)
= 17%*(1 - 22%)
= 13.26%
Therefore, The after-tax MARR is 13.26%
Suppose Columbia Sportswear Company had accounts receivable of $206,090,000 at the beginning of a recent year, and $267,085,000 at year-end. Sales revenue was $1,093,860,000 for the year. What is the amount of cash receipts from customers?
Answers
Answer:
The amount of cash receipts from customers: $1,032,865,000
Explanation:
Assuming that all Sales revenue was on credit sales.
In Suppose Columbia Sportswear, Sales revenue was $1,093,860,000, accounts receivable in the year increased $1,093,860,000. Basing on formula:
Accounts receivable at year-end = Accounts receivable at the beginning of the year + Accounts receivable increasing in the year - Accounts receivable decreasing in the year
Thefore:
Accounts receivable decreasing in the year = Accounts receivable at the beginning of the year + Accounts receivable increasing in the year - Accounts receivable at year-end = $206,090,000 + $1,093,860,000 - $267,085,000 = $1,032,865,000
This is also the amount of cash receipts from customers.
Expected purchases for June and July are $ 78 comma 000 and $ 92 comma 000, respectively. Purchases for May were $ 59 comma 000. All purchases are paid 40% in the month of purchase and 60% the following month. At what amount are June payments for purchases budgeted?
Answers
Answer:
$66,200
Explanation:
Given,
Purchases in May = $59,000
Purchases in June = $78,000
Purchases in July = $92,000
All purchases are paid 40% in the month of purchase and 60% the following month.
Therefore,
Amount paid in June = 60% purchases in May + 40% Purchases in June
= 60% × $59000 + 40% × $78000
= $35000 + $31200
= $66,200
The Horizons Cycle Shop bought 3 motorcycles for $2,100, and sold each one for $1,000. The markup percent was:
A. 33 1/3 percent.
B. 30 percent.
C. 142 percent.
D. 50 percent.
E. There is not enough information to determine the markup.
Answers
Answer:
B. 30 percent
Explanation:
Based on the selling price, the markup percent is determined as the difference of the selling price and the cost. divided by the selling price.
Since 3 motorcycles were sold at $1,000 each, total sales are $3,000, and the markup percent is:
[tex]MU=\frac{sales-cost}{sales} *100\%\\MU=\frac{\$3,000- \$2,100}{\$3,000} *100\%\\MU=30\%[/tex]
B. 30 percent.
You know that the return of Sandhill Cyclicals common shares is 1.6 times as sensitive to macroeconomic information as the return of the market. If the risk-free rate of return is 4.10 percent and market risk premium is 5.71 percent, what is Sandhill Cyclicals’ cost of common equity capital?
Answers
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.
alifornia Surf Clothing Company issues 1,000 shares of $1 par value common stock at $32 per share. Later in the year, the company decides to purchase 100 shares at a cost of $35 per share. Record the purchase of treasury stock.
Answers
Answer:
Record the purchase of treasury stock.Treasury Stock $3,500 - CREDIT
Cash $3,500 - DEBIT
Explanation:
If the company purchase the shares and keep it in the company the journal entry it's as detailled, in this case the company keep the shares in the accounting and the shares could be reissued in the future.
The total shares purchases are 100 * $35 = $3,500.
The quality of information obtained from a request letter depends on the clarity of the inquiry. What techniques can you use to make your request clear? Check all that apply.
Organize your ideas.
Use parallel construction for lists.
Frame your request logically.
Thank the recipient in advance.
Analyze your needs.
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Answer:
Organize your ideasFrame your request logically.Thank the recipient in advance.Analyze your needs.Explanation:
A request letter is a type of business letter whose purpose is to place an order with the recipient.
When writing a letter of request it is appropriate to analyze your needs and then organize your ideas and include it in the body of the message in a logical way that facilitates understanding.
A letter of request should contain:
company letterhead, department initials, letter number, place and date, addressee, reference, subject, greeting, body text, farewell, and signature.The techniques that can be used to make a request clear include: 1. Organize your ideas. 2. Use parallel construction for lists. 3. Frame your request logically. The correct answer is 1, 2 and 3.
Explanation:1. Organizing your ideas helps present the request in a structured manner, making it easier for the recipient to understand.
2. Using parallel construction for lists ensures consistency and clarity in expressing multiple items or actions within the request.
3. Framing the request logically involves presenting it in a sequence that flows logically from introduction to the main request, supporting details, and conclusion. This logical progression aids comprehension and enhances the effectiveness of the request letter.
Sheffield Corp. is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year of operations, the company had the following events and transactions pertaining to its preferred stock. Feb. 1 Issued 51,500 shares for cash at $54 per share. July 1 Issued 67,000 shares for cash at $58 per share. Journalize the transactions.
Answers
Final answer:
To journalize the transactions related to Sheffield Corp.'s preferred stock, you need to record the issuance of shares for cash at different times and prices. Here are the journal entries for the given events:
Explanation:
To journalize the transactions related to Sheffield Corp.'s preferred stock, we need to record the issuance of shares for cash at different times and prices. Here are the journal entries for the given events:
February 1:
Debit: Cash ($54 x 51,500 shares)
Credit: Preferred Stock ($50 x 51,500 shares)
Credit: Additional Paid-in Capital on Preferred Stock (Difference)
July 1:
Debit: Cash ($58 x 67,000 shares)
Credit: Preferred Stock ($50 x 67,000 shares)
Credit: Additional Paid-in Capital on Preferred Stock (Difference)
The director of the Environmental Protection Agency has been in the news recently for overspending on luxuries for his office, such as a $250,000 bathroom renovation. A Congressional committee investigation is instigated. This is an example of ______.
Answers
Answer:
Fire alarm oversight
Explanation:
Fire alarm oversight is an oversight which becomes active or in action only when there is evidence or proof of bureaucratic wrongdoing.
In this case, the EPA (Environmental Protection Agency) is in the news for overspending on the luxuries for the office like they spent $250,000 for the renovation of the bathroom. A committee investigates the scenario. Therefore, it is an example of the fire alarm oversight.