Answer:
FCFF = $335.50
Explanation:
Formula of Free Cash Flow to the firm ( FCFF) :
FCFF= Net Income+ Interest(1- tax rate)+ Depreciation+ working capital changes- capital investment
Now let us note some critical points and assumptions which are necessary to solve the question.
As the question says that the company will maintain its existing after tax return on capital invested next year, hence that means that the net income for the next year remains the same, which is $140.
It is also that the company expects it's Operating Income(EBIT) to increase by 6% every year, hence it's operating income(EBIT) for the next year will be $250*(1.06)= $265
Tax rate remains the same, that is, (60/200*100)= 30%
As there is no details with respect to working capital changes and any capital investment made, hence it is assumed to zero changes and no additional investment.
It is assumed that the depreciation method being followed is straight line method, hence depreciation value next year would be the same, that is, 150
Now let's finalise our income statement:
EBIT = $265 given in the question
Interest = ( $65) backward calculation
Taxable Income = $200
Taxes (30%) = ($60)
Net income = $140 given in question.
Hence our FCFF will be :
$ 140 + $65*(1-0.30) + $150 = $335.50
Shares of common stock of the Samson Co. offer an expected total return of 12.8 percent. The dividend is increasing at a constant 5.1 percent per year. The dividend yield must be:
7.70 percent.
5.10 percent.
12.80 percent.
2.51 percent.
17.90 percent.
Answer:
A. 7.70 percent.
Explanation:
Generally, dividend yield is the annual dividend per share divided by the stock price per share. However, in finance, dividend yield is the difference between the expected total return and dividend growth rate per year.
Therefore, Dividend yield = Expected total return - Dividend growth rate (Increasing)
Dividend yield = 12.8% - 5.1%
Hence, Dividend yield = 7.70%
Therefore, option A is the answer.
A city starts a solid waste landfill during 2020. When the landfill was opened the city estimated that it would fill to capacity within 5 years and that the cost to cover the facility would be $1.5 million which will not be paid until the facility is closed. At the end of 2020 the facility was 20% full. A- Record the transaction if he landfill is viewed as an enterprise and on government-wide financial statements. B- Record the transaction if he landfill is viewed as a general fund and on fund financial statements.
Answer:
Explanation:
Solution:
a) At the end of 2020, facility is 20% full so the 300,000 would be regarded as expenses
Therefore, in the balance sheet, at the end of 2020, 300,000 would be shown as liability.
b) In the financial statements for 2012, 300,000 would be shown as expense and 300,000 would be shown as liability.
A firm has fixed operating costs of $253,750, a sales price per unit of $100, and a variable cost per unit of $65. The firm's operating breakeven point in dollars is ________.
Answer:
$725000
Explanation:
The break-even point is the point at which the firms total expenses is equal to its total revenue and it neither makes a profit nor a loss. At any point before this, the firm makes a loss and at any point after this, the firm is making a profit. This is because, it has got to a point where after the unit variable costs are covered from the revenue, there is enough to cover fixed costs as well because the firm’s fixed costs are now being spread over a greater number of units.
The break-even point is calculated as:
Fixed costs / (Selling price per unit - variable cost per unit)
Hence, in this case : $253750 / ($100 - $65) = 7250 units.
In dollars, this would be...
Revenue : 7250 x $100 = $725000
Expenses : $253750 + ($65 x 7250) = $725000
The operations of Winston Corporation are divided into the Blink Division and the Blur Division. Projections for the next year are as follows: Blink Division Blur Division Total Sales $ 325,000 $ 186,000 $ 511,000 Variable costs 107,000 86,000 193,000 Contribution margin $ 218,000 $ 100,000 $ 318,000 Direct fixed costs 93,000 79,000 172,000 Segment margin $ 125,000 $ 21,000 $ 146,000 Allocated common costs 48,000 40,500 88,500 Operating income (loss) $ 77,000 $ (19,500 ) $ 57,500 If the Blur Division were dropped, Blink Division's sales would increase by 35%. If this happened, the operating income for Winston Corporation as a whole would be:A.$103,950.
B.$77,000.
C.$112,800.
D.$77,625.
Answer:
c. $112,800
Explanation:
The computation of operating income is shown below:-
= (Contribution margin of blink division × Increase sales percentage) - Fixed cost of blink division - Allocated common costs of blink division - Allocated common costs of blur division
= ($218,000 × 135%) - $93,000 - $48,000 - $40,500
= $294,300 - $93,000 - $48,000 - $40,500
= $112,800
Each oligopolistic firm recognizes that it must take into account the behavior of its competitors when it makes pricing decisions. This recognition is called: mutual dependence. mutual interdependence. monopolistic behavior. profit-maximization behavior.
Answer:
Option B is correct one.
Mutual interdependence
Explanation:
Each oligopolistic firm recognizes that it must take into account the behavior of its competitors when it makes pricing decisions. This recognition is called mutual interdependence.
Mutual interdependence is a term in which a group of oligopolies all benefit from one another. They can benefit through market share, location in terms of geography, product differentiation, price allocation, etc.
Oligopolistic firms are engaged in a state of mutual interdependence where their pricing and economic decisions are heavily influenced by the actions of a few other dominant firms within the same market. This results in either strong competition, which can lead to minimal profits, or collusion, mimicking monopoly behavior with higher profits.
Explanation:In the context of oligopolies, each oligopolistic firm must consider the potential reactions and strategies of its competitors when making decisions about pricing or other economic variables. This strategic consideration is commonly referred to as mutual interdependence, where the firms' decisions regarding output, price, and advertising are interconnected with the decisions of the other firms within the same industry.
Whether oligopolists decide to compete fiercely or collude will significantly affect the outcomes in terms of profit levels and market prices. Collusion could lead to higher profits akin to a monopoly, while competition might drive profits down to zero as if they were perfect competitors. The essence of oligopolistic markets is this balance between competition and collusion, shaping the dynamic of mutual interdependence among the firms.
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Compute ROE and RNOA with Disaggregation Selected balance sheet and income statement information for Home Depot follows. $ millions Jan. 31, 2016 Feb. 01, 2015 Operating assets $40,583 $38,473 Nonoperating assets 2,241 1,748 Total assets 42,824 40,221 Operating liabilities 15,018 13,527 Nonoperating liabilities 21,285 17,167 Total liabilities 36,303 30,694 Total stockholders' equity 6,521 9,527 Sales 88,999 Net operating profit before tax (NOPBT) 12,024 Nonoperting expense before tax 778 Tax expense 4,088 Net income 7,158 Round answers to two decimal places (ex: 0.12345 = 12.35%) a. Compute return on equity. Answer % b. Compute return on net operating assets (RNOA). Answer % c. Use ROE and RNOA to determine the nonoperating return for the year. Answer % d. Disaggregate RNOA into components of profitability and productivity and show that the product of the two components equals RNOA. NOPM Answer % NOAT Answer RNOA Answer %
Answer:
a. Return on equity is 89.2%
b.Return on net operating assets (RNOA) is 20.0%
c. nonoperating return for the year is 69.2%
d RNOA is 20.025%
Explanation:
$ millions Jan. 31, 2016 Feb. 01, 2015
Operating assets $40,583 $38,473
Nonoperating assets 2,241 1 ,748
Total assets 42,824 40,221
Operating liabilities 15,018 13,527
Nonoperating liabilities 21,285 17,167
Total liabilities 36,303 30,694
Total stockholders' equity 6,521 9,527
Sales 88,999
Net operating profit before tax (NOPBT) 12,024
Nonoperting expense before tax 778
Tax expense 4,088
Net income 7,158
NOPAT = Net operating profit before tax (NOPBT) - Tax expense
= 7936
277822 - 151357
a. Compute return on equity.
ROE = Net income / Average share equity
= 7,158/ ((6,521 + 9,527 )/ 2)
= 7158 / 8024
= 0.892
= 89.2%
b. Compute return on net operating assets (RNOA).
=NOPAT / Average operating asset
= 7936 / ((40583 + 38473)/2)
= 7936 / 39528
= 0.20
= 20 %
c. Use ROE and RNOA to determine the nonoperating return for the year.
=ROE - RONA
= 89.2% - 20%
= 69.2%
d. Disaggregate RNOA into components of profitability and productivity and show that the product of the two components equals RNOA.
NOPM = NOPAT / Sales
= 7936 / 88999
= 0.089
=8.9%
NOAT = Sales / Average operating asset
= 88999 / ((40583 + 38473)/2)
= 88999 / 39528
= 2.25%
RNOA = NOPM x NOAT
= 8.9 x 2.25
= 20.025%
Fast Co. produces its product through two processing departments. Direct materials are added at the start of production in the Cutting department, and conversion costs are added evenly throughout each process. The company uses monthly reporting periods for its weighted-average process costing system. The Work in Process Inventory-Cutting account has a balance of $84,300 as of October 1, which consists of $17,100 of direct materials and $67,200 of conversion costs. record the transfer of goods to next department. transferred out
Answer:
Explanation
since the direct materials falls under assets and now in this case are being transferred out of fast co. they must be credited because they are no longer resources or owned by fast co
Answer:
See the answer in the explanation below
Explanation:
Date: The Work in Process Inventory-Cutting account
October 1 Direct material $17,100
Conversion cost $67,200
Balance 84,300
Transfer to next department
Debit Credit
Conversion cost 67200 Direct material 17100
Which of the following differences would result in future taxable amounts? Expenses or losses that are tax deductible after they are recognized in financial income. Revenues or gains that are taxable before they are recognized in financial income. Revenues or gains that are recognized in financial income but are never included in taxable income. Expenses or losses that are tax deductible before they are recognized in financial income.
Answer: Expenses or losses that are tax deductible before they are recognized in financial income.
Explanation:
Future taxable amounts arise as a result of a difference between the way an asset or liability is recorded due to the company's financial accounting principles and the way it should be recorded due to taxation principles of the government.
When this happens you will find that some things are not taxed as they should be, but rather as the company records them to be. These differences are only temporary though and correct themselves as time goes on.
An example of such are expenses of losses. Some expenses for instance may be taxable immediately but are instead only taxed in the business over the term of the expense.
Question 16 of 17 From the examples below, determine which best describes an international externality.
a. Global warming fears rise as a result of increased pollution in Singapore.
b. A small county raises money from local churches to create a scholarship for 1,000 low-income students in the state.
c. Japan reaches a new trade agreement between the United States that makes trade even easier between the two countries.
d. Increased traffic in American cities due to the rise of Uber
Answer:
Option (a) is correct.
Explanation:
Externality is the consequence of an activity which affects the third party either in a positive way or in a negative way.
There are two types of externalities are as follows:
(i) Positive externality: When the third party is positively affected by an economic transaction between the two parties.
(ii) Negative externality: When the third party is negatively affected by an economic transaction between the two parties.
In our case, there is an increase in the level of pollution created by Singapore which results in an increase in the global warming. This will affect the whole world in a negatively manner and also affect their level of GDP.
Headland Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2020 and 2021.
2020
2021
Projected benefit obligation, January 1 $604,400
Plan assets (fair value and market-related value), January 1 413,300
Pension asset/liability, January 1 191,100 Cr.
Prior service cost, January 1 159,200
Service cost 40,000 $58,500
Settlement rate 10 % 10 %
Expected rate of return 10 % 10 %
Actual return on plan assets 36,000 61,600
Amortization of prior service cost 69,300 50,000
Annual contributions 96,700 81,400
Benefits paid retirees 31,600 54,040
Increase in projected benefit obligation due to changes in actuarial assumptions 86,300 0
Accumulated benefit obligation at December 31 722,000 792,600
Average service life of all employees 20 years
Vested benefit obligation at December 31
465,900
1.Prepare a pension worksheet presenting both years 2020 and 2021.
2.
Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year.
3. For 2021, indicate the pension amounts reported in the financial statements.
Final answer:
To prepare a pension worksheet for Headland Company, calculate key figures and organize them from 2020 and 2021. Then use the worksheet to prepare journal entries reflecting all pension plan transactions and events. Finally, report the pension amounts in the financial statements for 2021.
Explanation:
To prepare a pension worksheet for Headland Company for the years 2020 and 2021, you need to calculate several key figures. These include the projected benefit obligation (PBO), the fair value and market-related value of plan assets, the pension asset/liability, the prior service cost, the service cost, the settlement rate, the expected rate of return, the actual return on plan assets, the amortization of prior service cost, the annual contributions, the benefits paid to retirees, and the increase in projected benefit obligation due to changes in actuarial assumptions. By organizing these figures in a clear and organized manner, you can create a comprehensive pension worksheet for both years.
Once the pension worksheet is complete, you can use the information to prepare the journal entries to reflect all pension plan transactions and events at December 31 of each year. This will involve recording the service cost, the actual return on plan assets, the amortization of prior service cost, the annual contributions, the benefits paid to retirees, and any changes in the projected benefit obligation. By properly recording these transactions, you can accurately reflect the financial impact of the pension plan on the company's records.
Finally, for 2021, the pension amounts reported in the financial statements will include the accumulated benefit obligation at December 31, the vested benefit obligation at December 31, and any other relevant information that needs to be disclosed. These amounts will provide stakeholders with an understanding of the financial obligations and commitments related to the pension plan in the current year.
has 12,200 shares of stock outstanding with a par value of $1 per share. The market value is $27.50 a share. The balance sheet shows $12,200 in the common stock account, $146,598 in the capital in excess of par account, and $263,455 in the retained earnings account. The firm just announced a stock dividend of 15 percent. What is the balance in the retained earnings account after the dividend
Answer:
$213,130
Explanation:
Stock dividend is the payment of dividend to stockholder in the form of stock/shares of the company. Stock are issued at the market price and the value of the dividend is transferred from the retained earning to the add-in-capital accounts.
Total outstanding shares = 12,200 shares
Stock Dividend = 12,200 shares x 15% = 1,830 share
Stock Dividend Value = Stock dividend x Market value = 1,830 shares x $27.50 = $50,325
Par Value of Stocks = $1 x 1,830 = $1,830
Add-in-capital excess of par common stock = ($27.5-$1) x 1,830 = $48,495
Journal Entry for the transaction
Dr. Retained Earning $50,325
Cr. Common Stock $1,830
Cr. Add-in-Capital excess of Par common stock $48,495
Debit entry in retained earning will reduce the balance because retained earnings account has credit nature.
Retained earning = $263,455 - $50,325 = $213,130
Suppose the civilian noninstitutionalized working-age population is 35.9 million in in a hypothetical economy. Of these, 4.9 million are working part-time and 14.53 million are working full-time. Assume the Bureau of Labor Statistics (BLS) definitions are used for calculating unemployment data. Among those not working, the most recent job-search activity for 2.90 million happened less than two weeks ago, while 1.72 million most recently looked for work between two and four weeks ago. An additional 0.86 million most recently looked for work five weeks ago, and the remaining 10.99 million who do not have jobs have not looked for work in the past six weeks. Round your answers to two decimal places.
1. What is the size of the total labor force?
Answer:
24.05 million
Explanation:
The computation of the size of the total labor force is shown below:
Size of the labor force = Number of employed people + number of unemployed people
where,
Number of employed people = Number of people working full time + number of people working part time
= 14.53 million + 4.9 million
= 19.43 million
Number of unemployed people = Less than two weeks + two and four weeks ago
= 2.90 million + 1.72 million
= 4.62 million
So, the size of the labor force is
= 19.43 million + 4.62 million
= 24.05 million
Bend Inc. holds 25% of the outstanding voting shares of Calico Co. and appropriately applies the equity method of accounting. Amortization associated with this investment equals $9,000 per year. For 20X3, Calico reported earnings of $80,000 and paid cash dividends of $30,000. During 20X3, Calico acquired inventory for $57,600, which was then sold to Bend for $90,000. At the end of 20X3, Bend still held some of this inventory at its transfer price of $40,000. Required: (1) Determine the amount of intra-entity profit at the end of 20X3. (2) Determine the amount of Equity in Investee Income that Bend should have reported for 20X3.
Answer:
The solution is attached in the file below
Explanation:
The intra-entity profit at the end of 20X3 is -$17,600. Bend should have reported Equity in Investee Income of $20,000 for 20X3.
Explanation:(1) To determine the amount of intra-entity profit at the end of 20X3, we need to calculate the difference between the transfer price and the cost of the remaining inventory. The transfer price is $40,000, and the cost of the inventory acquired by Calico is $57,600. Therefore, the intra-entity profit is $40,000 - $57,600 = -$17,600.
(2) To determine the amount of Equity in Investee Income that Bend should have reported for 20X3, we need to calculate Bend's share of Calico's earnings. Bend holds 25% of the outstanding voting shares of Calico, and Calico reported earnings of $80,000. Therefore, Bend's share of Calico's earnings is 25% x $80,000 = $20,000.
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A wholesale store buys 500 of their most popular coffee mugs each month. The cost of ordering and receiving shipments is $12 per order. Accounting estimates annual carrying costs are $3.60. The supplier lead time is 2 operating days. The store operates 240 days per year. Each order is received from the supplier in a single delivery. There are no quantity discounts. Use 2 decimal places in your calculations (if needed) and then round your final answer to the closest whole number.
Answer:
Economic Order Point: 200 units
Order per year 30
Ordering cost $360
Holding cost $360
Explanation:
[tex]Q_{opt} = \sqrt{\frac{2DS}{H}}[/tex]
Where:
D = annual demand = 6,000
S= setup cost = ordering cost = 12
H= Holding Cost = 3.60
[tex]Q_{opt} = \sqrt{\frac{2(6,000)12}{3.6}}[/tex]
EOQ= 200
6,000 annual demand / 200 order size = 30 order per year
ordering cost: 30 order x $12 each = 360 dollar
average inventory 200/2 = 100
holding cost:
100 x 3.6 = 360
Frequent communication of expectations should be verbalized, modeled, and documented to all subordinates and employees across the organization; however, nonperforming employees may need ______________ counseling of each expectation, norm, and performance standard. Group of answer choices both peer mentor and explicit both peer mentor and explicit peer mentor aggressive explicit
Answer:
explicit
Explanation:
According to Gerald R. Ledlow and James H. Stephens in Leadership for Health Professionals, Frequent expectations should be verbalized, modeled, and documented to all subordinates and employees across the organization; however, non-performing employees may need explicit counseling of each expectation, norm, and performance standard.
Employees must be clearly informed about the behavior and results expected from them in alignment with organizational goals. For nonperforming employees, explicit guidance and counseling are necessary to clarify and reinforce expectations. Documenting expectations, providing feedback, and establishing contracts for group guidelines can help ensure employees understand and meet performance standards.
Frequent Communication and Performance Expectations in Organizations
Frequent communication of expectations should be verbalized, modeled, and documented to all subordinates and employees across the organization to ensure clarity and understanding of performance expectations. When dealing with nonperforming employees, there may be a need for explicit counseling of each expectation, norm, and performance standard. Clear communication is crucial, and for employees to perform their roles effectively, they must be thoroughly aware of the behaviors and results expected of them. Performance expectations, such as explicit rules and group standards, should align with the organization's goals and be evident in job descriptions, behavior standards, and consistent managerial feedback.
Performance objectives should not only be communicated but also documented for reference and accountability. When documenting these expectations, it becomes easier to avoid ambiguity, facilitate peer feedback, initiate discussions on performance results, discourage undesirable actions, and serve as a psychological anchor for employees. For instances where nonperformance issues persist, additional strategies like peer mentorship and continuation of explicit guidance could be essential for improvement.
In cases where rules and group norms need to be enforced, a contract of group guidelines can be useful. This contract, agreed upon by all group members, outlines the expected behaviors, meeting procedures, and consequences of not adhering to the set norms and expectations.
To overcome possible problems with budgets that are developed only by top level managers, an alternative is to use: A. Mandatory budgets B. Flexible budgets C. Participative budgets D. Authoritative budgets
Answer:
Paticipative budgets
Explanation:
A budget can be defined as a financial plan which gives an estimate of income and expenditures. A budget is a tool that is utilized by different organisations to manage their resources inorder to achieve their various objectives and goals.
A budget shows the different costs incurred by the organisation within a particular period of time.
Participative budgets is a type of budget in which the low level management of an organization are involved in the preparation of budget. It helps to prevent top managers from unruly behaviours.
Participative budget enables the top level and low level managers to share information that will lead to the growth of the organisation.
A new labor-saving technology will likely result in..... Group of answer choices Lower wage share of output and lower Gini coefficient in the short run. Higher wage share of output and higher Gini coefficient in the short run. Lower wage share of output and higher Gini coefficient in the short run. Higher unemployment, lower wage share of output, and higher Gini coefficient in the long run.
Answer:
Higher unemployment, lower wage share of output, and higher Gini coefficient in the long run.
Explanation:
Since less labor will be used, total unemployment will increase. Besides less labor being used, more capital will be used, so the share of labor in total output will decrease. Labor efficiency increases, since you need less labor to produce the same or even a larger amount of output.
New technologies tend to increase the wages of high skilled labor and management. Since the Gini coefficient measures income inequality, then higher wages for a few will increase inequality.
This is an example of what is happening in the US, where highly trained labor is getting paid better every time while unskilled labor is getting paid the same as many years ago or their wage has even decreased with time. This shows how important a college education is, and the difference will only keep increasing.
Strategically, having more than 1,000 suppliers results in a complex task of managing those suppliers, ensuring the quality of the products, and maintaining the IKEA brand. While we will address global supply chains later on, from a global strategy standpoint how would you manage IKEA’s global suppliers?
Answer:
There are pros and cons of having 1,000 different suppliers for IKEA. In one way you can are not limited to choice, price or quality and have enough suppliers to shift production requirements to meet demand surges.
However, manage 1,000 different suppliers can also lead to quality issues that are difficult to sustain. IKEA can do a number of things including:
Explanation:
With so many products, IKEA can categorize each supplier e.g. fabric suppliers, wood suppliers, kitchen etc. In this way, it will be easier for different departments to be set up that actively manage these category of suppliers.Since IKEA is a global brand, they can further categorise each supplier based on location. For example, they can have suppliers for the Asia-Pacific Market, other suppliers for the Middle East and another group for Europe and North America.IKEA can also outsource is supply. Going by an 80:20 strategy where 80% of them are direct suppliers while 20% of them are outsourced, third part suppliers who only step in when required.Managing IKEA’s global suppliers can be strategically achieved with two key concepts - economies of scale and value chain specialization. By consolidating suppliers and encouraging them to specialize in specific product components, IKEA could streamline its global supply chain significantly. Implementing stringent quality control measures will ensure product quality and consistency with the IKEA brand.
Explanation:Managing IKEA’s global suppliers strategically from a global perspective would involve the practice of economies of scale and value chain specialization. Economies of scale indicate the financial advantages of producing in large quantities, allowing one or two large producers to supply a significant portion of the market. In IKEA's case, this could involve consolidating suppliers where possible to reduce the complexity of supplier management.
Further, IKEA can leverage the concept of value chain specialization. The idea behind this is the division of production stages across different firms, in various locations, to increase efficiency. It involves suppliers focusing on producing specialized parts instead of whole finished products. IKEA could apply this strategy by ensuring that each of their 1,000 suppliers specialize in producing a particular component or range of products; this way, IKEA avoids overlap and enhances performance.
To ensure the quality of products and the IKEA brand's maintenance, they could implement and enforce strict quality control measures across its suppliers, including regular audits and inspections. Moreover, IKEA can provide workshops and training for their suppliers to ensure that products are manufactured to meet the IKEA brand quality and style.
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Johnsonville Company recently purchased 33,000 gallons of direct material at $5.90 per gallon. Usage by the end of the period amounted to 31,000 gallons. If the standard cost is $6.70 per gallon and the company believes in computing variances at the earliest point possible, the direct-material price variance would be calculated as:
Answer:
$24,800 Favourable
Explanation:
direct-material price variance = Aq×Ap-Aq×Sp
=(31,000×$5.90)-(31,000×$6.70)
= $24,800 Favourable
Johnsonville Company used materials at a price that is lower than anticipated
Pete is a salesperson at the local Honda dealership. He frequently offers buyers $50 if they refer someone else to him who buys a new car.
Pete is attempting to get these people to act as his:
A. reconnaissance staff
B. spotters
C. bounce-backs
D. spiffs
E. steppers
Answer:
The correct answer is letter "B": spotters.
Explanation:
Spotters are individuals who act on behalf of a business without the need of being employees. Usually, the company engages in a regular sale relationship with these individuals and offers them rewards -in the form of discounts, for instance- in exchange for promoting the benefits of certain products or referring other potential buyers.
Spotters use word-to-mouth marketing to promote an entity.
Pete is using buyers as 'spotters' by incentivizing them to refer new customers to boost car sales through a grassroots marketing strategy.
Pete, a salesperson at a Honda dealership, offers buyers $50 when they refer someone else who purchases a new car. By doing this, Pete is trying to convert these buyers into his spotters. The term spotter refers to individuals who can identify potential customers and refer them to a salesperson or business. This tactic is a grassroots marketing strategy, where businesses rely more on word-of-mouth and personal referrals rather than formal advertising, which can be seen as a more authentic form of marketing.
Therefore, the appropriate answer is B. spotters.
Lambert Company purchased $140,000 of goods in September and expects to purchase $130,000 of goods in October. Lambert typically pays for 20% of purchases in the month of purchase and 80% in the following month. Every month, Lambert must make the following payments: Rent $5,000 Wages 14,000 Utilities 3,000 Telephone 400 Loan on equipment 1,200 In mid-October, Lambert expects to buy a new computer for $4,500 using the company credit card. Typically, the credit card bill is paid in full in the following month. September credit card purchases totaled $6,000. What is Lambert's expected cash disbursement in October for purchases of goods?
Lambert's expected cash disbursement in October for purchases of goods = $138,000
Solution:
Given,
Lambert Company purchased $140,000 of goods
Expects to purchase $130,000 of goods
Lambert must make the following payments:
Rent $5,000
Wages 14,000
Utilities 3,000
Telephone 400
Loan on equipment 1,200
Lambert uses the company's payment card to acquire a desktop device for $4,500. Usually, the credit card balance must be charged in full in the next month. September payment card transactions contributed to $6,000.
Now , To find Lambert's expected cash disbursement in October for purchases of goods :
$5,000 + $14,000+ $3000+ $400+ $1200 = $23600
= $23600 + 80% of the Sept order of $140,000 ($112,000) + 20% of the Oct order of $130,000($26,000)
= $161,600 + the $6000 credit card = $167,600
Purchase of goods is $112,000 & $26,000 = $138,000
Below is the information pertaining to five jobs in process on October 22. Determine the sequencing of these five jobs at this machine using the critical ratio rule. Assume a seven-day workweek. Job Remaining Arrival Date Due Date Processing Time A 2 days Oct. 12 Oct. 29 B 6 days Oct. 15 Oct. 28 C 5 days Oct. 18 Oct. 30 D 10 days Oct. 1 Oct. 31 E 8 days Oct. 10 Oct. 27
Complete question:
Below is the information pertaining to five jobs currently waiting to be processed on the same machine. Determine the sequencing of these five jobs at this machine using the SPT heuristic:
Job Process Time Arrival Date Due Date
A 2 days Oct. 12 Oct. 29
B 6 days Oct. 15 Oct. 28
C 5 days Oct. 18 Oct. 30
D 9 days Oct. 1 Oct. 31
E 7 days Oct. 10 Oct. 27
A. A-C-B-E-D
B. A-E-B-C-D
C. A-B-C-E-D
D. D-A-C-B-E
Answer:
A-C-B-E-D is the answer
Explanation:
Single-user scheduling or single-resource scheduling is the method of assigning a work group to a particular system or resource. The functions are structured in such a manner that one or more success metrics may be tailored.
The problem of arranging n workers on a single batch system to mitigate some of the daily expense functions is being studied. Jobs among each batch are handled sequentially such that the production period of the batch is equivalent to the total of the turnaround times of the workers present within.
Jobs should be sequenced according to the critical ratio rule, whereby the job with the smallest ratio of remaining time until the due date to remaining processing time is prioritized. The sequence would be job E, D, B, C, A.
Explanation:The task involves determining the sequencing of jobs using the critical ratio rule. The critical ratio is calculated by dividing the time remaining until the due date by the remaining processing time. The job with the smallest critical ratio should be processed first. Let's calculate the critical ratios for your listed jobs:
Job A: (29-22)/2 = 3.5Job B: (28-22)/6 = 1Job C: (30-22)/5 = 1.6Job D: (31-22)/10 = 0.9Job E: (27-22)/8 = 0.625Thus, the sequence of jobs according to the critical ratio rule should be job E, D, B, C, A.
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(1) Suppose the world price of steel falls substantially. The demand for labor among steel-producing firms in Pennsylvania will _______. The demand for labor among automobile-producing firms in Michigan, for which steel is an input, will _______. The temporary unemployment resulting from such sectoral shifts in the economy is best described as _______ unemployment.
(2) Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply.
a. Improving a widely used job-search website so that it matches workers to job vacancies more effectively.
b. Increasing the benefits offered to unemployed workers through the government's unemployment insurance program.
c. Establishing government-run employment agencies to connect unemployed workers to job vacancies.
Answer:
1) reduce
2) increase
3) a, b
Explanation:
1. This would reduce the demand for steel workers because the steel serves as the company's output. Since low price of output means low profit, which leads to low demand for labor.
2. Increase in the demand for automobile workers would be observed because the cost of materials are now cheaper; Implying more profit for companies and thus more demand for labor.
3. Giving unemployment insurance benefits is one best method to reduce this type of unemployment. Also facilitating a widely used job-search website could help.
Answer:
Suppose the world price of steel falls substantially.
The demand for labor among steel-producing firms in Pennsylvania will DECREASE. The demand for labor among automobile-producing firms in Michigan, for which steel is an input, will INCREASE. The temporary unemployment resulting from such sectoral shifts in the economy is best described as FRICTIONAL UNEMPLOYMENT.
2. A. Improving a widely used job-search website so that it matches workers to job vacancies more effectively.
Explanation:
To tackle frictional unemployment and reduce it, matching of job seekers with job openings of should be carried out.
This can be thoroughly achieved through the transmission of information.
It should be noted tgat frictional unemployment is not related to economic policy and inflation.
What can only erase it is widespread transmission of information among job seekers regarding the availability of jobs.
With such, job seekers in Pennsylvania will get notified of job vacancies in steel-related jobs in Michigan.
At a technology firm, human capital would be critical to forming and using the firm's capabilities in customer relationships, scientific and research skills, and technical skills in hardware, software, and services. True False
Answer:
True
Explanation:
It is a Technology Firm.
Human Capital should be forming and using the firm's capabilities in: Customer relationships, Scientific and Research skills and technical skills in hardware, software, and services
Below is selected financial information for Panettone, Inc. Balance Sheet ($ in Millions) Income Statement ($ in Millions) Assets Liabilities and Equity Sales 4100 Current Assets Current Liabilities Cost of Goods Sold 2743 Cash 200 Accounts Payable 300 Administrative Expenses 557 Accounts Receivable 600 Notes Payable 500 Depreciation 251 Inventory 600 Total Current Liabilities 800 Earnings Before Interest and Taxes 549 Total Current Assets 1400 Long-Term Liabilities Interest Expense 20 Long-Term Debt 100 Taxable Income 529 Fixed Assets Total Long-Term Liabilities 100 Taxes 52 Property, Plant and Equip. 2100 Net Income 477 Less Acc. Depreciation 1300 Owners' Equity Dividends 328 Net Fixed Assets 800 Common Stock ($1 Par) 100 Addition to Retained Earnings 149 Capital Surplus 200 Retained Earnings 1000 Other Information Total Owners' Equity 1300 No. of Shares Outstanding (Millions) 100 Total Assets 2200 Total Liab. and Equity 2200 Price per Share 20 What is the company's Days sales in Inventory?
Answer:
11.63%
Explanation:
The company's Days sales in inventory is the return on sales
Return on sales = Net income / Sales
Return on sales = 477 / 4100
Return on sales = 0.11634
Return on sales = 11.63%
Puffy Shirt Inc's common stock has a beta of 1.2. If the risk free rate of return is expected to be 4% and the market risk premium is 11%, what is the required return on Puffy Shirt's common stock
Answer:
The required rate of return is 17.2%
Explanation:
To calculate the required rate of return, we will use the CAPM or Capital asset pricing model. The formula for the required rate of return (r) is:
r = rRF + Beta * (rpM)
Where,
rRF is the risk free rate.Beta is the measure of the riskrpM is the market risk premiumRequired rate of return for Puffy Shirt Inc's stock is:
r = 0.04 + 1.2 * 0.11
r = 0.172 or 17.2%
Lindsay Corporation had net income for 2011 of $3,000,000. Additional information is as follows:
Depreciation of plant assets $1,200,000
Amortization of intangibles 240,000
Increase in accounts receivable 420,000
Increase in accounts payable 540,000
Lindsay's net cash provided by operating activities for 2011 was
a. $4,440,000.
b. $4,560,000.
c. $4,320,000.
d. $1,680,000.
Answer:
B. $4,560,000.
Explanation:
Net income $3,000,000
Cash flow from operating activities:
Depreciation of plant assets $1,200,000
Amortization of intangibles $240,000
Accounts receivable ($420,000)
Increase in accounts payable $540,000
Cash flow from operating activities $1,560,000
Net cash provided by operating activities $4,560,000
Therefore, option B is the answer.
Newark liberty airport is a very busy airport. Continental airlines is one of the largest carriers at the airport. Their on-time rate is not bad but predicated on the weather. On a specific day the weather forecast is predicting snow conditions with probability of 25%, rain condition with 35% probability and cloudy but no precipitation with a 40% probability. If it snows there is an 83% probability the flight will be late, 75 % probability the flight is late if it rains and a 40% probability it is late under cloudy but no precipitation conditions. It is a rainy day, what is the probability the continental flight is late ?
21%
33%
41%
63%
To find the probability that the Continental flight is late on a rainy day, we need to use the given probabilities and calculate the conditional probability. The probability that the Continental flight is late on a rainy day is 75%.
Explanation:To find the probability that the Continental flight is late on a rainy day, we need to use the given probabilities and calculate the conditional probability. According to the information provided, the probability of rain is 35% and the probability of the Continental flight being late given rain is 75%. The formula for conditional probability is:
P(A|B) = P(A and B) / P(B)
Using the formula, the conditional probability of the Continental flight being late when it is raining is:
P(Late|Rain) = P(Late and Rain) / P(Rain) = (0.75 * 0.35) / 0.35 = 0.75
Therefore, the probability that the Continental flight is late on a rainy day is 75%.
Obviously, since you do not manage your neighbors, you won’t be using a __________ (a. functional team/b. cross-functional team/c. project team). But since you want formal representation from your homeowner’s association, your local law-enforcement agency, and the businesses on your street, you think that you might start with a ____________ (a. cross-functional team/b. command team/c. functional team). Whatever type of team you choose, you know that more diversity will bring you _________ (a. more/ b. fewer) ideas.
The organization type you won't use to manage neighbors is a project team. However, collaborating with your homeowner’s association, local law enforcement agency, and local businesses can be effectively achieved through a cross-functional team. Lastly, a more diverse team typically results in more ideas.
Explanation:Starting off with the first blank, you don't manage your neighbors, so you won't be using a project team, which are typically utilized for specific tasks or projects within an organization. Since you want representation from your homeowner’s association, your local law-enforcement agency, and the businesses on your street, you might find a cross-functional team useful. This type of team is composed of individuals with diverse expertise or functions and brings together a variety of perspectives, particularly useful in a community context. Lastly for diversity, it's generally accepted that more diversity will bring more ideas thanks to the variety of perspectives and experiences present in the team. This is due to the fact that team diversity can have a positive impact on performance, partly thanks to the broad range of skills and ideas that come from a diverse team.
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Whitman and Greene are partners in a real estate venture. At January 1, 2020, their respective capital balances were $200,000 and $245,000. Their partnership agreement provides that Whitman is to receive a guaranteed salary of $100,000, and that remaining profits after the salary are to be shared in a 2:3 ratio. Partnership operations for the year 2020 resulted in income of $75,000, before distributions to partners. Whitman’s salary is paid in cash during the year, but there are no other withdrawals or capital changes. Assume full implementation. Required a. Compute the balance of each partner’s capital account at December 31, 2020. Balance at December 31, 2020 Whitman Answer 290,000 Greene Answer 0 b. Compute the balance of each partner’s capital account at December 31, 2020, assuming partnership income was $150,000. Balance at December 31, 2020 Whitman Answer 0 Greene Answer 0
According to the question,
The balance of each partner’s capital account at December 31, 2020 in Whitman is $290,000 and Greene is $ 230,000.When the partnership income is $150,000 so, the balance of Whitman is $ 320,000 and Greene is $ 275,000.What do you mean by the capital balance?Capital Balance refers to the principal balance of a loan at any one time, to which the servicer applies the applicable interest rate at which interest is accruing on that loan.
Here,
(a) Compute the balance of each partner’s capital account at December 31, 2020:
Particular Whitman Greene Net income Undistributed
Distributed Net Income
Net income $ 75,000
Salary $100,000 $100,000 ($ 25000)
Net loss
distributed ($10,000) ($ 15000) ($ 25000)
Total
distribution $ 90,000 ($ 15,000) $ 75,000
Capital Bal. on $ 200,000 $ 245,000
Jan 1, 2020
Capital Bal. on $ 290,000 $230,000
Dec 31, 2020
(b) When the partnership income was $150,000, the balance of each partner’s capital account at December 31, 2020:
Particular Whitman Greene Net income Undistributed
Distributed Net Income
Net income $ 150,000
Salary $100,000 $100,000 $ 50,000
Net loss
distributed $20,000 $ 30,000) $ 50,000
Total
distribution $ 120,000 $ 30,000 $ 150,000
Capital Bal. on $ 200,000 $ 245,000
Jan 1, 2020
Capital Bal. on $ 320,000 $275,000
Dec 31, 2020
Therefore, according to the question,
The balance of each partner’s capital account at December 31, 2020 in Whitman is $290,000 and Greene is $ 230,000.When the partnership income is $150,000 so, the balance of Whitman is $ 320,000 and Greene is $ 275,000.To know more about the capital balance, visit:
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The provided answers of $0 for both partners under the assumption of $150,000 income are incorrect based on the partnership agreement and standard accounting practices. The correct balances are a. Balance at December 31, 2020:
Whitman: $290,000
Greene: $320,000
b. Balance at December 31, 2020, assuming partnership income was $150,000:
Whitman: $340,000
Greene: $395,000
a. For the year 2020, the partnership earned an income of $75,000 before distributions to partners. Whitman is entitled to a guaranteed salary of $100,000, which is paid in cash. Since the partnership income is less than Whitman's salary, the entire income of $75,000 is allocated to Whitman's salary, reducing the amount owed for the salary to $25,000 ($100,000 - $75,000). This leaves no profit to be shared with Greene.
Whitman's capital account at December 31, 2020, will be:
Initial capital: $200,000
Plus income allocated to salary: $75,000
Whitman's capital account: $200,000 + $75,000 = $275,000
Since Whitman is still owed $25,000 of his salary, we add this amount to his capital account:
Whitman's capital account: $275,000 + $25,000 (owed salary) = $300,000
However, since Whitman's salary is guaranteed and the partnership cannot cover it, Whitman's capital account will not reflect the owed salary. Thus, Whitman's capital account remains at $275,000.
Greene's capital account at December 31, 2020, will be:
Initial capital: $245,000
No additional income is allocated to Greene since all income is absorbed by Whitman's salary.
Greene's capital account: $245,000
However, the provided answer for Greene is $0, which suggests that the remaining $25,000 of Whitman's salary has been deducted from Greene's capital account. Therefore, Greene's capital account would be:
Greene's capital account: $245,000 - $25,000 = $220,000
But since the initial question stated that Whitman's salary is paid in cash during the year, and there are no other withdrawals or capital changes, the correct balance for Greene should be the initial capital balance plus any share of profits. Since there are no profits left to distribute, Greene's capital account should remain at $245,000.
The correct capital account balances at December 31, 2020, should be:
Whitman: $275,000 (initial capital + income allocated to salary)
Greene: $245,000 (initial capital)
However, to match the provided answers, we must assume that the remaining $25,000 of Whitman's salary that could not be paid in cash was somehow deducted from Greene's capital account, which is not standard practice. If we follow this assumption, the capital account balances would be:
Whitman: $275,000 + $15,000 (from Greene's account) = $290,000
Greene: $245,000 - $15,000 (to Whitman for unpaid salary) = $230,000
Since the provided answer for Greene is $0, this suggests a different calculation or interpretation of the partnership agreement, which is not clear from the information given. The correct calculation based on standard partnership accounting principles would not result in a $0 balance for Greene.
b. Assuming the partnership income was $150,000, we first allocate $100,000 to Whitman's salary, leaving $50,000 to be shared between the partners in a 2:3 ratio.
Whitman's share of the remaining profits: $50,000 * (2/5) = $20,000
Greene's share of the remaining profits: $50,000 * (3/5) = $30,000
Whitman's capital account at December 31, 2020, would be:
Initial capital: $200,000
Plus salary: $100,000
Plus share of profits: $20,000
Whitman's capital account: $200,000 + $100,000 + $20,000 = $320,000
Greene's capital account at December 31, 2020, would be:
Initial capital: $245,000
Plus share of profits: $30,000
Greene's capital account: $245,000 + $30,000 = $275,000
However, the provided answers are $0 for both partners, which does not align with the correct calculations based on the given information. The correct capital account balances, assuming an income of $150,000, should be as calculated above:
Whitman: $320,000
Greene: $275,000