Answer:
Overestimate inflation between the two years.
Explanation:
If there is an increase in the cost of automobile tire and no adjustment is made in the mileage, and then CPI would be overestimated between the two years. This is because as there is no improvement in mileage and hence it is estimated that there is no increase in variable costs in the process of improving the quality.
Therefore, the correct answer is overestimate inflation between the two years.
Consider the following aggregate planning problem for one quarter: Regular Time Overtime Subcontracting Production Capacity/Month 1,000 200 150 Production Cost/Month 5 7 8 Assume that there is no initial inventory and there is forecasted demand of 1,250 units in each month in the quarter. Carrying cost is $1 per unit per month, and backlogs are not allowed. Use the transportation model to find the optimal solution. How much excess capacity is there? units What is the cost of the optimal solution? How many units are actually made by subcontracting? How many units incur a holding cost? In other words, how many are made in one month and held to meet the demand of a future month? units
Answer: $20,400
Explanation:
Optimal cost per month = Units x cost per unit
1000 x5 +200x7 +50x8
= $6,800
Optimal cost for three months = optimal cost per month x3
= 6,800 x3
= $20,400
Answer:
Check the explanation
Explanation:
The full explanation to the question can be seen in the Microsoft Excel (which is also a very useful spreadsheet program that is part of Microsoft Office suite of application software. This program present table of values and figures that are well arranged in rows and columns that can be manipulated mathematically through the use of both basic and complex arithmetic functions and operations.) in the attached images below.
n investor is considering a $10,000 investment in a start-up company. She estimates that she has probability 0.39 of a $23,000 loss, probability 0.24 of a $8700 profit, probability 0.12 of a $31,000 profit, and probability 0.25 of breaking even (a profit of $0). What is the expected value of the profit? Would you advise the investor to make the investment? Part: 0 / 20 of 2 Parts Complete
Answer:
The expected profit is -$13,162.
I would not recomend the investor to make this investment.
Explanation:
The expected profit can be calculated multypling the probabilities of every outcome and the profit of each outcome, and substracting the total invevstment.
The outcomes are:
1) probability 0.39 of a $23,000 loss,
2) probability 0.24 of a $8700 profit,
3) probability 0.12 of a $31,000 profit, and
4) probability 0.25 of breaking even
NOTE: It is assumed that the outcomes does not include the initial investment.
Then, the expected profit of this investment is:
[tex]E(P)=[0.39*(-23,000)+0.24*8,700+0.12*31,000+0.25*0]-10,000\\\\E(P)=[-8,970+2,088+3,720+0]-10,000\\\\E(P)=-3,162-10,000\\\\E(P)=-13,162[/tex]
Answer:
company b
Explanation:
Use the following information to determine this company's cash flows from financing activities.
Net income was $467,000.
Issued common stock for $74,000 cash.
Paid cash dividend of $13,000.
Paid $120,000 cash to settle a note payable at its $120,000 maturity value.
Paid $120,000 cash to acquire its treasury stock.
Purchased equipment for $90,000 cash.
Answer:
See the explanation below.
Explanation:
Details Amount ($)
Issued common stock 74,000
Dividend paid (13,000)
Settlement of note payable (120,000)
Treasury stock acquired (120,000)
Net cash flows from financing activities (179,000)
Store supplies still available at fiscal year-end amount to $2,050. Expired insurance, an administrative expense, for the fiscal year is $1,600. Depreciation expense on store equipment, a selling expense, is $1,575 for the fiscal year. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,100 of inventory is still available at fiscal year-end. 4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2018
Answer:
Current Ratio = 7.59
Acid test Ratio = 1.28
Gross margin ratio = (Gross profit)/(Total Revenue)
where gross profit = Sales- Cost Of Sales
Explanation:
The first ratio that we must calculate is the current ratio which is the measure of current assets and current liabilities which the formula is :
Current ratio = (current assets)/ (current liabilities)
which current assets are assets that are liquidated in 12 months or less which given here the store supplies balance of $2050 then further we have Inventory( Stock) balance at the year end of $10100
Then current liabilities are those liabilities that can be paid in 12 months or less of which here we are given expired insurance and an admin expense which means that these are Differed expenses which are a liability that will be paid off in the next accounting period which amount to $1600. Therefore the current ratio will be ; Current Ratio = ($2050+$10100)/($1600)
Current ratio = 7.59 correct to two decimal places.
The acid test ratio is calculated by adding up all the most liquid able assets over the total liabilities in the company. the formula is
Acid test ratio = (most liquidable assets)/(Total Liabilities)
Acid Test Ratio = ($2050)/($1600)
Acid Test Ratio = 1.28 correct to two decimal places
where the most liquidable asset is the store supplies and the total given liabilities are the one given for the expired insurance and an admin expense.
The last ratio is the gross margin ratio which is calculated by dividing he gross profit of a company by the total revenue a company gains which the formula is Gross Margin Ratio = (Gross profit)/(Total Revenue), where Gross profit = Sales - Cost of Sales. Then to find the Total Revenue which is the Gross Profit - Operating expenses.
Answer:
The Current Ratio = 7.59
The Acid test Ratio = 1.28
The Gross margin ratio = (Gross profit)/(Total Revenue)
where gross profit = Sales- Cost Of Sales:
Explanation:
The First step to take is to calculate the current ratio which is the measure of current liabilities and assets
The the formula is :
The ratio (Current) = (current assets)/ (current liabilities)
The current assets are assets that given here, the store supplies balance of $2050 then further we have Inventory( Stock) balance at the year end of $10100 or assets that are liquidated or in 12 months or less.
Then
The current liabilities are those liabilities that an admin expense which means that these are Differed expenses which are a liability that will be paid off in the next accounting period which amount to $1600 Or that can be paid in 12 months or lesser of which here we are given expired insurance and. Therefore the current ratio will be:
The Current Ratio = ($2050+$10100)/($1600)
Current ratio = 7.59 correct to two decimal places.
The acid test ratio is calculated by adding up all the most liquid able assets over the total liabilities in the company. the formula is given as,
The Acid test ratio = (most liquidable assets)/(Total Liabilities)
Which is,
Acid Test Ratio = ($2050)/($1600)
Acid Test Ratio = 1.28 correct to two decimal places
When the most liquidable asset is the store supplies and the total given liabilities are the one given for the expired insurance and an admin expense.
The last ratio is the gross margin ratio which is calculated by dividing he gross profit of a company by the total revenue a company gains
Therefore,
the formula is Gross Margin Ratio = (Gross profit)/(Total Revenue), where Gross profit = Sales - Cost of Sales. Then to find the Total Revenue which is the Gross Profit - Operating expenses.
The common stock of Water Town Mills pays an annual dividend of $1.84 a share. The company has promised to maintain a constant dividend even though economic times are tough. How much are you willing to pay for one share of this stock if you want to earn a 13.6 percent annual return?
Answer:
The maximum that should be paid for a share of this stock today is $13.53.
Explanation:
The price of a company's stock which pays a constant dividend through out can be calculated using the zero growth model of the Dividend discount model (DDM). The formula for price of the stock today under DDM's zero growth model is,
P0 = D / r
P0 = 1.84 / 0.136
P0 = $13.529 rounded off to $13.53
The Woods Co. and the Speith Co. have both announced IPOs at $52 per share. One of these is undervalued by $11, and the other is overvalued by $5, but you have no way of knowing which is which. You plan to buy 1,900 shares of each issue. If an issue is underpriced, it will be rationed, and only half your order will be filled. a. If you could get 1,900 shares in Woods and 1,900 shares in Speith, what would your profit be
Answer:
$11,400
Explanation:
Data provided as per the question is below:-
Shares = 1,900
Undervalued amount = $11
Overvalued amount= $5
The computation of profit is shown below:-
Profit = Shares × Undervalue amount - Shares × Overvalued amount
= 1,900 × $11 - 1,900 × $5
= $20,900 - $9,500
= $11,400
Therefore for computing the profit we simply applied the above formula.
Seth Erkenbeck, a recent college graduate, has just completed the basic format to be used in preparing the statement of cash flows (indirect method) for ATM Software Developers. All amounts are in thousands (000s). ATM SOFTWARE DEVELOPERS Statement of Cash Flows For the year ended December 31, 2021 Cash Flows from Operating Activities Net income $ Adjustments to reconcile net income to net cash flows from operating activities: Net cash flows from operating activities Cash Flows from Investing Activities Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities Net increase (decrease) in cash $ 1,605 Cash at the beginning of the period 8,330 Cash at the end of the period $ 9,935 Listed below in random order are line items to be included in the statement of cash flows. Cash received from the sale of land $ 8,470 Issuance of common stock 12,625 Depreciation expense 5,375 Increase in accounts receivable 3,910 Decrease in accounts payable 1,670 Issuance of long-term notes payable 16,045 Purchase of equipment 39,415 Decrease in inventory 1,385 Decrease in prepaid rent 815 Payment of dividends 6,190 Net income 10,600 Purchase of treasury stock 2,525 Required: Prepare the statement of cash flows for ATM Software Developers using the indirect method. (List cash outflows and any decrease in cash as negative amounts. Enter your answers in thousands (i.e., 10,000,000 should be entered as 10,000).)
Answer:
Explanation:
Statement of cash flow is a statement of how activities of the income statement and statement of financial position impact the cash and cash equivalent of a company through it operating , financing and investing activities
STATEMENT OF CASH FLOW FOR ATM SOFTWARE
The figures appears to be in "000" already
Cash flow from operating activities
Net Income - 10600
Account receivable (3910)
Account payable (1670)
Depreciation expense 5375
Decrease in inventory 1385
Decease in prepaid rent 815
Net cash flow from operating activities 12595
Cash flow from investing activities
Sales of Land 8470
Purchase of equipment (39415)
Net cash flow from financing activities (30945)
Cash flow from financing activities
Issuance of stock - 12,625
long term note payable 16405
Purchase of treasury stock (2525)
Payments of dividends (6910)
Net cash flow from financing activities 19595
Net increase in cash 1605
Cash at the beginning 8330
Cash at the end 9935
The answer involves categorizing the given items into three main components of a statement of cash flows: Operating, Investing, and Financing activities. After assigning appropriate items under each category, their total sum indicates the net change in cash.
Explanation:To prepare the statement of cash flows using the indirect method, organize the given line items under the three main categories: Cash Flows from Operating Activities, Cash Flows from Investing Activities, and Cash Flows from Financing Activities.
Operating Activities:Start with net income: $10,600Add back depreciation expense (non-cash charge): $5,375Subtract increase in accounts receivable (an investment in working capital): -$3,910Add decrease in inventory (a recovery of working capital): $1,385Subtract decrease in prepaid rent (another use of cash): -$815Add decrease in accounts payable (a source of cash as liabilities are decreased): $1,670.Investing Activities:Subtract cash paid for the purchase of equipment: -$39,415Add cash received from the sale of land: $8,470Financing Activities:Add cash from issuance of common stock: $12,625Add cash from issuance of long-term notes payable: $16,045Subtract cash used for payment of dividends: -$6,190Subtract cash used for purchase of treasury stock: -$2,525After calculating each category, sum them up to find the net increase or decrease in cash.
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At December 31, 2012, Destin Sports Equipment had 200,000 common shares issued and outstanding. On May 31, 2013, Destin issued a 15% stock dividend. Fully vested, incentive stock options issued in 2011 and exercisable for 40,000 shares (adjusted for the stock dividend) were outstanding at the end of 2013, with an exercise price of $40 per share. The market price of Destin’s common stock averaged $50 per share during 2013. Also outstanding since 2007 were $100,000 of 10% bonds issued at face value and convertible into 30,000 common shares. Destin’s tax rate is 40% and 2013 net income was $550,000.
__ 2. What is Destin’s 2013 basic earnings per share? b. $2.39
__ 3. What is Destin’s 2013 diluted earnings per share? a. $2.07
Answer:
2. Basic Earning per share = 2.39
3. Diluted earnings per share = 2.07
Explanation:
2.
Calculation of Weighted Average No. of Equity Shares Outstanding
Particular Portion Shares Calculations Weighted
of year outstanding Average
during time Impact
interval.
Shares 12 months 200000 12/12*200000 200000
Outstanding
1 Jan-31 Dec
15% Stock 12 months 30000 12/12*30000 30000
Total 230000
Basic Earning per share= Income available to common share
holders/Weighted average no of shares
Net Income 550000
Income available to common share holders 550000
Weighted Average no. of shares 230000
Basic Earning per share = 2.39
3.
Diluted Earning Per Share =Earning for Equity share holders after effects of Dilutive Potential Equity Shares/ Weighted
Average No of O/SEquity after effects of Dilutive Potential Equity Shares
Potential Equity Shares= ESOP-(ESOP*(Exercise Price/ Market Price))
ESOP 40000
Exercise Price 40
Market Price 50
Potential Equity Shares 8000
Time Portion Shares Calculations Weighted
Interval of year outstanding Average
during time Impact
interval
Shares 12 months 200000 12/12*200000 200000
Outstanding
1 Jan-31 Dec
15% Stock 12 months 30000 12/12*30000 30000 Dividend
Potential Equity 8000 8000
Shares (ESOP)
Debentures 30000 30000
Total 268000
Diluted EPS
Earning for Equity Share holders 550000
Incremental EPS 100000*10%*(1-0.4) 6000
Total 556,000
Weighted average no of Equity Shares 268000
DEPS 2.07
Summit Systems will pay a dividend of $ 1.48 one year from now. If you expect Summit's dividend to grow by 6.4 % per year, what is its price per share if its equity cost of capital is 10.2 %?
Answer:
$36.84
Explanation:
The computation of the price per share is shown below:
Price per share = (Dividend) ÷ (Equity cost of capital - growth rate)
where,
Dividend one year from now is $1.48
Equity cost of capital = 10.2%
And, the growth rate is 6.4%
So, the price per share is
= ($1.48) ÷ (10.2% - 6.4%)
= ($1.48) ÷ (3.8%)
= $36.84
You are called in as a financial analyst to appraise the bonds of Olsen’s Clothing Stores. The $1,000 par value bonds have a quoted annual interest rate of 10 percent, which is paid semiannually. The yield to maturity on the bonds is 8 percent annual interest. There are 10 years to maturity. Compute the price of the bonds based on semiannual analysis.
Answer:
current market price of the bond is $667
Explanation:
the formula to calculate yield to maturity (YTM) is:
YTM = [C + (F - P)/n] / [(F + P)/2]
F = face value P = market price n = number of years x 2 = C = couponwe just start replacing and solve for P:
YTM = 8%C = 50F = 1,000n = 208% = [50 + (1,000 - P)/20] / [(1,000 + P)/2]
8% x (1,000 + P)/2 = 50 + (1,000 - P)/20
8% x (500 + 0.5P) = 50 + 50 - 0.05P
40 + 0.04P = 100 - 0.05P
0.04P + 0.05P = 100 - 40 = 60
0.09P = 60
P = 60 / 0.09 = 667
Trend-Line Inc. has been growing at a rate of 6% per year and is expected to continue to do so indefinitely. The next dividend is expected to be $5 per share. a. If the market expects a 10% rate of return on Trend-Line, at what price must it be selling? (Do not round intermediate calculations.) b. If Trend-Line’s earnings per share will be $8 next year, what part of its value is due to assets in place? (Do not round intermediate calculations.) c. If Trend-Line’s earnings per share will be $8 next year, what part of its value is due to growth opportunities? (Do not round intermediate calculations.)
Answer:
a. $125
b. $80
c. $45
Explanation:
a. If the market expects a 10% rate of return on Trend-Line, at what price must it be selling? (Do not round intermediate calculations.)
Current selling price = Next dividend / (Rate of return - Growth rate) = $5 / (10% - 6%) = $125.
b. If Trend-Line’s earnings per share will be $8 next year, what part of its value is due to assets in place? (Do not round intermediate calculations.)
The value due to assets in place = Next year earning per share / Market rate of return = $8/10% = $80.
c. If Trend-Line’s earnings per share will be $8 next year, what part of its value is due to growth opportunities? (Do not round intermediate calculations.)
The value due to growth opportunities = Current selling price - The value due to assets in place = $125 - $80 = $45.
Final answer:
The stock price of Trend-Line Inc. should be $125 per share considering a 6% growth rate and a 10% expected rate of return. The value due to assets in place is $80 per share, and the value due to growth opportunities is calculated as $45 per share.
Explanation:
Trend-Line Inc., which has been growing at a rate of 6% per year and is expected to continue doing so indefinitely, is expected to pay a dividend of $5 per share next year. If the market expects a 10% rate of return on Trend-Line, the price at which the stock must be selling can be determined using the Gordon Growth Model (GGM), which is P = D1 / (r - g). Substituting the provided values (P = 5 / (0.10 - 0.06)) gives a stock price of $125 per share. For the part of its value due to assets in place, given that Trend-Line's earnings per share will be $8 next year and assuming all earnings are distributed as dividends, using the same model without growth (since we are only looking at the assets in place) would give us a value of $80 per share considering a 10% required rate of return but no growth. Finally, the part of its value due to growth opportunities is obtained by subtracting the value due to assets in place from the total value ($125 - $80 = $45).
Explain in what respect the application of the Outsourcing heuristic and the composition of larger activities, as specific case of the Activity composition heuristic – can lead to similar or different results. Use the performance dimensions of the Devil’s Quadrangle and provide specific interpretations.
Answer:
Heuristic is a way to deal with critical thinking, learning, or revelation that utilizes a functional strategy not destined to be ideal or great, however adequate for the quick objectives. As it were, heuristics are systems gotten from past encounters with comparable issues. These procedures depend on utilizing promptly available, however freely material, data to control critical thinking in individuals, machines, and unique issues. The re-appropriating heuristic is like the work process mix which implies that it considers the work processes of different gatherings. The fundamental point of re-appropriating heuristic is that it will produce less cost. Anyway the quality may diminish. Let me clarify to sum things up about the interfacing heuristic methodology: it is considered as a normalized interface with customers and accomplices. One of the proportions of heuristic upgrade work process is Devil's quadrangle. Four primary measurements in the impacts of overhaul gauges in Devil's quadrangle are time, cost, quality and adaptability. This model alludes that an upgrade of a work process diminishes the time required to finish the undertaking, it improves nature of the administration conveyed, and it improves the capacity of the work process by lessening the expense. Be that as it may, in this methodology, an impromptu creation in one measurement will prompt a debilitating impact on another measurement. The re-appropriating heuristic methodology for bigger exercises will prompt various outcomes dependent on the Devil's quadrangle.
Time-Throughput time is a significant idea. It alludes to the time it takes to complete an errand/venture from begin to end. The target may be to diminish the normal throughput time for the finish of the case. In the re-appropriating heuristic methodology, the downside for the decrease of the throughput time is that the case might be dynamic. Quality-The nature of the case can be seen both from the customer's and from the laborer's side. This alludes to outside quality and interior quality. The outer quality can be estimated as the customer's fulfillment with either the item or the procedure. Inner quality alludes to the state of working in the work process. Cost-The cost engaged with the case/venture is the principle factor that is considered by everybody to lessen the expense. The customer would haggle with the operator for giving diminished expense to the task. Flexibility- It is the capacity to respond to changes. It is imperative to recognize the adaptability of the work process from different measurements. The customer and the operator ought to have the option to adjust to the evolving pattern.
Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kiki’s records show the following for the month of January. Sales totaled 260 units. Date Units Unit Cost Total Cost Beginning Inventory January 1 100 $ 75 $ 7,500 Purchase January 15 360 95 34,200 Purchase January 24 240 115 27,600 Required: Calculate the number and cost of goods available for sale. Calculate the number of units in ending inventory. Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods.
The number of goods available for sale is 700 units, and the cost of goods available for sale is $69,300. The units in ending inventory are 440 units. The cost of ending inventory and cost of goods sold (COGS) can be determined using the FIFO, LIFO, and weighted average cost methods.
Explanation:Firstly, to find the number of goods available for sale, we add the beginning inventory and the purchases made throughout January. Hence, 100 (Beginning inventory) + 360 (First purchase) + 240 (Second purchase) = 700 units. The cost of goods available for sale is the sum of the total costs, which is $7,500 (from beginning inventory) + $34,200 (from first purchase) + $27,600 (from the second purchase) = $69,300.
Units in ending inventory can be calculated by subtracting the units sold from the number of goods available for sale, which gives 700 (Goods available for sale) - 260 (Units sold) = 440 units.
Now let's calculate ending inventory and cost of goods sold (COGS) using the FIFO, LIFO, and Weighted Average cost methods:
FIFO (First-In-First-Out): Under this method, the cost of the oldest inventory (first-in) is charged to cost of goods sold (COGS) first. And, the remaining inventory (ending inventory) is valued at the cost of the newest purchases (last-in). LIFO (Last-In-First-Out): As opposed LIFO method charges the most recent purchases (last-in) to COGS first. Ending inventory is valued at the cost of the oldest inventory units (first-in).Weighted Average cost method: This method takes a simple average of all units available during the period and uses that average cost to determine ending inventory and COGS. To get the weighted average cost per unit, you divide the cost of goods available for sale by the number of units available for sale, which would give: $69,300/700 units = $99 per unit.Learn more about Inventory Costing Methods here:https://brainly.com/question/17097250
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The number and cost of goods available for sale for Oahu Kiki are 700 units and $69,300 respectively. Using FIFO, LIFO, and weighted average methods, different values for the ending inventory and cost of goods sold can be calculated. The number of units in ending inventory is 440 units.
Explanation:Calculating Inventory and Cost of Goods SoldTo calculate the number and cost of goods available for sale, we add the beginning inventory to the purchases made during the month. Oahu Kiki's beginning inventory is 100 units at $75 each, totaling to $7,500. On January 15, they purchased 360 units at $95 each, totaling $34,200, and on January 24, they purchased 240 units at $115 each, totaling $27,600.
The goods available for sale is the sum of these amounts:
Goods available for sale = Beginning Inventory + Purchases = $7,500 + $34,200 + $27,600 = $69,300.
The total units available for sale are:
Total units = 100 + 360 + 240 = 700 units.
To find the ending inventory and cost of goods sold (COGS), we calculate as per FIFO, LIFO, and weighted average cost methods:
Since sales totaled 260 units, the ending inventory would be:
Ending inventory units = Total units - Sold units = 700 units - 260 units = 440 units.
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. Terry purchases an annuity with payments made at the beginning of each month for 36 payments. The monthly payments are a constant amount of 15 per month for the first 24 payments. The 25th payment is 20, 26th is 25, the 27th payment is 30, and the arithmetic sequence continues for the rest of the payments. The nominal annual interest rate is 6% convertible monthly. What is the present value of the annuity
Answer:
The present value of the annuity is $ 825.02
Explanation:
The present value of the annuity is the today's worth of the thirty annuity payments.
Each of the annuity payment is multiplied by its discount factor,for instance the discount factor for the first payment is computed thus
=$15*(1/(1+6%/12)^1=$14.93
The 6% interest rate is divided by 12 months to show a monthly rate of return find attached.
The following condensed information is reported by Sporting Collectibles.
2018 2017
Income Statement Information Sales revenue $ 14,820,000 $ 9,400,000
Cost of goods sold 9,544,080 6,900,000
Net income 418,000 348,000
Balance Sheet Information Current assets $ 1,700,000 $ 1,600,000
Long-term assets 2,300,000 2,000,000
Total assets $ 4,000,000 $ 3,600,000
Current liabilities $ 1,300,000 $ 1,000,000
Long-term liabilities 1,400,000 1,400,000
Common stock 900,000 900,000
Retained earnings 400,000 300,000
Total liabilities and stockholders' equity $ 4,000,000 $ 3,600,000
Required:
Calculate the following profitability ratios for 2018
Gross profit ratio %
Return on assets %
Profit margin %
Asset turnover times
Return on equity %
Answer:
Gross profit ratio % = 35.60%
Return on assets % = 10.45%
Profit margin % = 2.82%
Asset turnover times = 3.90 times
Return on equity % = 46.44%
Explanation:
a. Gross profit ratio %
Gross profit = Sales revenue - Cost of good sold = $14,820,000 - $9,544,080 = $5,275,920
Gross profit ratio % = (Gross profit / Sales revenue) * 100 = ($5,275,920 / $14,820,000) * 100 = 35.60%
b. Return on assets %
Return on assets % = (Net income / Total assets) * 100 = ($418,000/$4,000,000) * 100 = 10.45%
c. Profit margin %
Profit margin % = (Net income / Sale revenue) * 100 = ($418,000/$14,820,000) * 100 = 2.82%
d. Asset turnover times
Average total asset = ($4,000,000 + $3,600,000) / 2 = $3,800,000
Asset turnover times = Sales revenue / Average total asset = $14,820,000/$3,800,000 = 3.90 times
e. Return on equity %
Return on equity % = (Net income / Common stock) * 100 = ($418,000/$900,000) * 100 = 46.44%
Susan Chen is a stock analyst. She values two goods: money (income) and her integrity. Her bonus is based on the number of investments she recommends to the company. Generally speaking, the higher the bonus she receives, Question 7 options: the smaller is the shift in her budget line. the more she is willing to trade off her integrity for money. the more she is indifferent to changes in the level of bonus. the less she is willing to trade off her integrity for money.
Answer:
The more she is willing to trade off her integrity for money
Explanation:
An indifference curve represents different combinations of two goods which a consumer can have, which shall yield same level of satisfaction.
Opportunity cost in case of two goods, refers to the units sacrificed or traded off of one good so as to consume more units of the other good.
In the given case, the analyst is faced with the trade off between two sources of utility or satisfaction i.e money and integrity. So if the individual wants more of one, she has to sacrifice some part of other.
Since her bonus is based upon number of investments she recommends to the company, if she'll be honest or focuses upon integrity, justness and fairness, her number of recommended investments would be lesser in comparison to the number of recommended investments if she is dishonest.
So, the higher the bonus she receives, means more the number of investments recommended by her which implies lesser integrity.
So, the higher the bonus she receives, the more she is willing to trade off her integrity for money.
The Medicine Chest Company keeps a small petty cash fund to handle small cash transactions. Because no one wants to volunteer to be the custodian, the business manager has decided that all employees should have access to the petty cash.
Answer and explanation:
Petty cash funds refer to a small number of money companies have, typically in each department, so the department can have immediate resources for the purchase of items with minimal costs such as office supplies. A ticket is usually registered for every expense to keep control of the expenditures until the petty cash fund runs out where the total expense is recorded in the accounting books of the firm.
In the case give, the fact that no representative of the department wants to be in charge of the petty cash fund reflects a weakness since there must be only one person controlling the outflows of the cash instead of having every employee reporting a ticket for each expense which could lead to the misuse of those funds.
The highest and lowest levels of activity for the Felton Company were 58,000 direct labor hours and 42,000 direct labor hours, respectively. Maintenance costs were $336,000 at the 58,000-hour level and $304,000 at the 42,000-hour level.
a. Compute the maintenance cost formula.
b. What cost might we expect at an operating level of 52,000 direct labor hours?
Answer:
A. $32,000
B. $324,000
Explanation:
See attached file
Answer:
a. Compute the maintenance cost formula
Maintainance cost = $220,000 + $ 2.00 × Number of direct labour hours.
b. cost at an operating level of 52,000 direct labor hours
$324,000
Explanation:
a. Compute the maintenance cost formula
Maintainance Cost is a semi-variable cost. This means it has a fixed cost element and a variable cost element.
Cost separation of Maintainance cost is done by using the high - low method as follows :
Variable cost element = difference in Overhead (High - Low)/ difference in Acitivity (High - Low)
= $336,000 - $304,000 / 58,000 - 42,000
= $ 2.00 per direct labour hour
Fixed cost element = Total Overhead - Variable Cost at given activity level
activity level of 58,000 hrs produce the following results
Fixed cost element = $336,000 - $ 2.00 × 58,000
= $220,000
Maintainance cost = $220,000 + $ 2.00 × Number of direct labour hours.
b. cost at an operating level of 52,000 direct labor hours
Maintainance cost = $220,000 + $ 2.00 × Number of direct labour hours.
= $220,000 + $ 2.00 × 52,000
= $324,000
The accountant at Cedric Company has determined that income before income taxes amounted to $7,000 using the FIFO costing assumption. If the income tax rate is 30% and the amount of income taxes paid would be $315 greater if the LIFO assumption were used, what would be the amount of income before taxes under the LIFO assumption?
Answer:
8050
Explanation:
he amount of income before taxes under the LIFO assumption would be:
8050 calculated as follows:
Income tax under FIFO: 7000*.30 = 2100
Income Tax under LIFO = 2100 + 315= 2415
Income before taxes under LIFO = 2415/.30 = 8050
On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value, 95,000 shares authorized, issued, and outstanding $ 950,000 Paid-in capital in excess of par value, common stock 331,000 Retained earnings 1,048,000 Total stockholders’ equity $ 2,329,000 1. Prepare journal entries to record the following transactions for Sherman Systems. Purchased 7,300 shares of its own common stock at $48 per share on October 11. Sold 1,575 treasury shares on November 1 for $54 cash per share. Sold all remaining treasury shares on November 25 for $43 cash per share.
Answer:
Date Description DR CR
$ $
Oct 11 Treasury Stock 350,400
Cash 350,400
Being the purchse of teasury stock
Nov 1 Cash 85,050
Paid in Capital from Treasury stock 9,450
Treasury stock 75,600
Being the cash realized on the sales of Treasury
stock above cost
Nov 25 Cash 246,175
Paid in capital from Treasury stock 9,450
Retained earnings 19,175
Treasury Stock 274,800
Being the sales of Treasury stock below the cost
Explanation:
Sherman Systems' stock transactions including purchasing and selling of treasury shares, involve recording the cash flow and changes in the equity accounts such as Treasury Stock and Paid-in Capital from Treasury Stock.
Explanation:Understanding Stock Transactions and Shareholder Equity
The student is seeking to understand how to record journal entries for stock transactions involving treasury shares for Sherman Systems. Treasury shares are the company's own shares that it has reacquired. The transactions include purchasing treasury shares and then selling them at two different prices.
Purchase of Treasury Shares: On October 11, Sherman Systems purchased 7,300 of its own shares at $48 per share. The journal entry will be a debit to Treasury Stock (an equity account) and a credit to Cash, both for the total purchase amount of $350,400 (7,300 shares * $48 per share).
Sale of Treasury Shares: On November 1, 1,575 treasury shares were sold for $54 per share, resulting in a credit to Treasury Stock for the cost of the shares and a debit to Cash for the proceeds received, which is $85,050 (1,575 shares * $54 per share). Additionally, the difference between the proceeds and the cost of the treasury shares is credited to Paid-in Capital from Treasury Stock, assuming the shares were sold at a higher price than the repurchased cost.
On November 25, the remaining treasury shares were sold for $43 per share. Again, a similar journal entry is made with a focus on the cash received and the changes to the Treasury Stock account, along with any excess proceeds or loss being reflected in a separate equity account as appropriate.
The Communication Process The Communication Process model describes how communications move from the firm to the consumer and which factors affect the way the consumer perceives the message. This activity is important because as the number of communication media has increased, the task of understanding how best to reach target consumers has become far more complex. The goal of this activity is to recognize how each component of the communication process model interacts with each other and to understand what the consumer experience is at each step of the communication process. First, read the brief scenario about how Target reaches the right consumers. Then, match the communication action to the correct component of the communication process model. Target is a discount retailer that operates nearly 1,750 stores in 49 states. Target differentiates itself from its competitors by offering more upscale, trend-forward merchandise at low prices. The store is planning a Back-to-School sale aimed at moms with school-aged children going back to school; these women make the majority of their household purchases. Target works with its advertising agency to develop a message to reach the right consumers and to motivate them to take action. The message could be communicated on television or radio, or in print advertisements, and the choice must be appropriate for the target market. Since Target aims to reach bargain shoppers, it decides to advertise in the sales flyers of local papers. When the papers come out, Target's advertising director sees that Walmart (Target's major competition) has run similar ads promoting a sale at the same time. Fortunately, this has no effect on Target's campaign. As expected, a significant number of Target customers like Melissa, a mom of two school-aged children, saw the ad and headed straight to Target. In fact, significantly more consumers than usual visited Targets all around the country during the sale. Match the elements of a consumer's experience to each step of the communication process. Ad runs on local Sunday newspaper Store traffic increases Advertising agency creates print ad Target creates a Back-to-School campaign Melissa buys the paper and plans to go shopping for her children's supplies Sender Transmitter Encodes Communication Channel Receiver Decodes Feedback
Answer and explanation:
Sender: Target creates a Back-to-School Campaign
Transmitter Encodes: Advertising agency creates print ad
Communication Channel: Ad runs on local Sunday newspaper
Receiver Decodes: Melissa buys the paper and plans to go shopping for her children's supplies
Feedback: Store traffic increases
Target is the maker of the Campaign and intends to create an advertisement to communicate its offering hence it is the Sender. The Advertising agency, upon Target’s intentions, create the print ad, hence encodes the same as Transmitter. The channel of communication so chosen is that of the Newspaper hence ad runs on Sunday newspaper. The receiver is the target audience, here, Melissa who decodes and acts upon the same by going for shopping for her children’s supplies. The feedback is given by way of increase in Store traffic by the Target audience.
Answer:Sender: Target creates a Back-to-School Campaign
Transmitter Encodes: Advertising agency creates print ad
Communication Channel: Ad runs on local Sunday newspaper
Receiver Decodes: Melissa buys the paper and plans to go shopping for her children's supplies
Feedback: Store traffic increases
(A) Prepare an individual income tax return.George Large (SSN 000-11-1111) and his wife Marge Large (SSN 000-22-2222) live at 2000 Lakeview Drive, Cleveland, OH 49001 and want you to prepare their 2017 income tax return based on the information below: George Large worked as a salesman for Toyboat, Inc. He received a salary of $80,000 ($8,500 of federal income taxes withheld and $1,800 of state income taxes withheld) plus an expense reimbursement from Toyboat of $5,000 to cover his employee business expenses. George must make an adequate accounting to his employer and return any excess reimbursement, none of the reimbursement was related to the meals and entertainment. Additionally, Toyboat provides George with medical insurance worth $7,200 per year. George drove his car a total of 24,000 miles during the year, and he placed the car in service on June 1, 2015. His log indicates that 18,000 miles were for sales calls to customers at the customers' offices and the remainder was personal mileage. George uses the standard mileage rate method. George is a college basketball fan. He purchased two season tickets for a total of $4,000. He takes a customer to every game, and they discuss some business before, during, and after the games. George also takes clients to business lunches. His log indicates that he spent $1,500 on these business meals. George also took a five-day trip to the Toyboat headquarters in Musty, Ohio. He was so well-prepared that he finished his business in three days, so he spent the other two days sightseeing. He had the following expenses during each of the five days of his trip: Airfare $200 Lodging $85/day Meals $50/day Taxicabs $20/day Marge Large is self-employed. She repairs rubber toy boats in the basement of their home. The total square footage of the Larges' home, including the basement, is 3,000 square feet. The portion of the basement used in Marge's business is 750 square feet. The business code is 811490. She had the following income and expenses: Income from rubber toy boat repairs $15,000 Cost of supplies 5,000 Contract labor 3,500 Telephone (business) 500 The Larges use the simplified method to figure their deduction for Marge's business use of their home. The Larges incurred the following total other expenses: Real estate taxes 2,500 Mortgage interest 4,500 Cash charitable contributions 3,500 Prepare Form 1040, Schedules A, C, and SE for Form 1040, and Form 2106 for the 2017 year. (Assume no depreciation for this problem and that no estimated taxes were paid by the Larges.)(B) In addition to the preparation of the individual income tax return for this topic, write a 300-500-word paper in which you address the following ethical issues associated with tax preparation:1. Discuss the legal and ethical aspects of accurately reporting income on tax returns using Circular 230 as published by the Department of Treasury (located in Topic Materials). Discuss one item in Section B on Duties and Restrictions and the consequences to tax preparers if they fail to adhere to the guidelines as provided by the Department of Treasury.2. Compare and contrast the concepts of "tax avoidance" and "tax evasion".3. (Optional) You are welcome to add a discussion about how ethics in taxation can correlate to the Christian worldview. In other words, what guidance from a Biblical perspective could be applied to the preparation of tax returns for clients?Prepare this assignment according to the APA guidelinesApply basic legal, tax, and ethical concepts to issues in financial reporting.
Answer:
Explanation:
prepare from 1040 to disclose Income and respective Tax
FORM 1040
Amount ($)
Salary Received 80,000
Business Income- Wn1) 2,789
Total Income 82,789
Less - Itemized wise Deduction-Wn2 21,405
Total Income 61,384
Standard deduction 11,900
Total Taxable Income 49,484
tax
From 0-$17400 10% 1,740
From $17400-$70700 15% 4,813
Total Tax Liability 6,553
Schedule A
wn2
Real Estate Tax 2,500
Interest on Mortgage 4,500
Gifts to Charity 3,500
Unreimbursed Job Expeses(FORM 2106) 10,905
Total Itemized wise Deduction 21,405
wn1
Income from rubbery toy boat 15,000
Less cost
Cost of suppies 5000
Business phone call 3500
Cost of suppies 500
Total 9000
Total Business Income 6,000
Less- FORM 8829 Expeses 3211
Business Income- 2,789
FORM 2106
Car expenses 9990
Travelling Expense 665
Meal Expenses 5500
Total 10655 5500
Less Reimbursement 5000
Total 10655 500
Expenses Allowed 10655 250
Total 10905
FORM 8829
25% is used for Business
Income from buisness 6000
Mortgage Interest' -1125
Reat estate tax -625
Utility Bills -500
Depreciation -961
Total Business Income 2789
Calculate depreciation
Lesser of fair market value or adjusted cost 1,70,000
Less - value of Land -20,000
Total 1,50,000
Basis of building 37,500
rate of depreciation 2.56%
960
A manager states that his process is really working well. Out of 1,500 parts, 1,477 were produced free of a particular defect and passed inspection. a. Calculate the defects per million opportunities (DPMO). (Round your answer to the nearest whole number.) Defects per million opportunities b. Based on Six-Sigma theory, how would you rate this performance
To calculate the DPMO, subtract defect-free parts from the total parts and multiply by 1,000,000, resulting in 15,333 DPMO. This performance falls short of Six Sigma standard, which allows for only 3.4 defects per million opportunities.
The student asked about calculating defects per million opportunities (DPMO) and assessing performance based on Six Sigma theory. To calculate DPMO for the given situation:
Subtract the number of defect-free parts (1,477) from the total parts produced (1,500). This gives us 23 defects.
Calculate the DPMO: (23 defects / 1,500 parts) * 1,000,000 = 15,333 DPMO (rounded to the nearest whole number).
Regarding the Six Sigma rating, the standard for a Six Sigma process is 3.4 defects per million opportunities. Since the calculated DPMO is 15,333, the process performance is below the Six Sigma threshold and would not be rated as Six Sigma proficient on a long term scale.
(A) The defects per million opportunities (DPMO) is [tex]15,333[/tex]. (B) A DPMO of [tex]15,333[/tex] indicates below Six Sigma quality, suggesting need for process improvement.
(A). To calculate the defects per million opportunities (DPMO), first, find the number of defective parts:
Defective parts = Total parts - Passed parts
Defective parts = [tex]1500 - 1477 = 23[/tex]
Next, calculate the DPMO using the formula:
DPMO = (Defective parts / Total parts) × [tex]1,000,000[/tex]
DPMO = [tex]\frac{23}{1500} \times 1,000,000 = 15,333[/tex]
(B). According to Six Sigma theory, DPMO values are used to assess process performance. A DPMO of approximately [tex]15,333[/tex] indicates a high level of defects relative to the total opportunities. This level of performance would typically fall below the Six Sigma quality standard, suggesting that the process may need improvement to achieve higher levels of quality and consistency.
This year Jack intends to file a married-joint return. Jack received $180,000 of salary, and paid $6,450 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid moving expenses of $5,750 and $34,500 of alimony to his ex-wife, Diane, who divorced him in 2012. (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Final answer:
Jack's taxable income for this year is $201,600, calculated by subtracting his deductions from his adjusted gross income.
Explanation:
To calculate Jack's taxable income, we need to subtract his deductions from his adjusted gross income. Let's break it down:
Jack's adjusted gross income is the sum of his salary, interest on loans used for tuition costs, moving expenses, and alimony. So, AGI = $180,000 + $6,450 + $5,750 + $34,500 = $226,700.
Next, we calculate Jack's deductions. The standard deduction for a married couple filing jointly in 2022 is $25,100.
Finally, we subtract the deductions from the AGI to get the taxable income. Taxable income = AGI - deductions = $226,700 - $25,100 = $201,600.
Therefore, Jack's taxable income for this year is $201,600. Please note that this is a simplified calculation, and Jack should consult a tax professional for accurate advice based on his specific situation.
Owner made no investments in the business, and no dividends were paid during the year. Owner made no investments in the business, but dividends were $700 cash per month. No dividends were paid during the year, but the owner did invest an additional $45,000 cash in exchange for common stock. Dividends were $700 cash per month, and the owner invested an additional $35,000 cash in exchange for common stock. Determine the net income earned or net loss incurred by the business during the year for each of the above separate cases: (Decreases in equity should be indicated with a minus sign.)
Answer:
scenario 1
owner made no investment in the business and no dividend were paid during the year, there may be no income or net loss incurred by the business. there is no decrease or increase in equity.
scenario 2
owner made no investments in the business but dividend were $700 cash per month, the net income earned during the year equal $700*12 = $8,400. There is no changes in equity
scenario 3
No dividend were paid during the year but owner invested an additional $45,000 cash in exchange for common stock. There will be increase in equity by $45,000 but net income or net loss cannot be determined
scenario 4
Dividend were $700 cash per month and the owner invested additional $35,000 cash in exchange for common stock. The net Income earned will $8,400 while $35,000 will added to equity as additional capital.
Explanation:
Rayya Co. purchases a machine for $176,400 on January 1, 2019. Straight-line depreciation is taken each year for four years assuming a seven-year life and no salvage value. The machine is sold on July 1, 2023, during its fifth year of service. Prepare entries to record the partial year’s depreciation on July 1, 2023, and to record the sale under each seperate situation. (1) The machine is sold for $75,600 cash. (2) The machine is sold for $60,480 cash.
Answer:
Refer explanation
Explanation:
A. Straight-line depreciation is whereby the same amount is depreciated every year throughout the life of the asset. It is calculated as:
(Cost of asset - Salvage Value) / Estimated total number of life years of asset.
The depreciation per year for the machine would be: ($176400 - 0) / 7
= $25,200
Depreciation for partial year’s depreciation as at 01 July 2023 = $25,200 / 2 = $12,600
Debit : Depreciation account : $12600
Credit : Accumulated depreciation account : $12600
B. In order to account for sale, it should be identified whether it is a profit on sale or loss on sale. This is calculated by comparing the net book value of the asset at the time of sale, and it’s sale price. If the sale price is higher than the NBV, it is a profit on sale. If the sale price is lower than the NBV, it is a loss on sale. Net book value is calculated as cost of asset - accumulated depreciation.
If the asset was purchased on January 01 2019 and sold on July 01 2023, it was used for 4.5 years. Hence, the accumulated depreciation of the asset is $25200 x 4.5 = $113400.
NBV = $176400 - $113400 = $63000
(B1) Machine is sold for $75600
Profit on sale : $75600 - $63000 = $12600
Debit : Cash : $75600
Debit : Accumulated depreciation : $113400
Credit : Profit on sale of asset : $12600
Credit : Machinery Account : $176400
(B2) Machine is sold for $60480
Loss on sale : $60480 - $63000 = $2520
Debit : Cash : $60480
Debit : Loss on sale of asset : $2520
Debit : Accumulated depreciation :$113400
Credit : Machinery Account : $176400
Final answer:
When a machine is sold during its useful life, the company needs to record the partial year's depreciation and the sale transaction.
Explanation:
When a machine is sold during its useful life, the company needs to record the partial year's depreciation and the sale transaction. In this case, the machine was sold on July 1, 2023, during its fifth year of service. To record the partial year's depreciation, the company needs to calculate the depreciation expense for the first half of the year. Since the machine has a seven-year life and is depreciated using the straight-line method, the annual depreciation expense is calculated as the initial cost divided by the useful life. Therefore, the depreciation expense for the first half of 2023 would be half of the annual depreciation expense.
Good corporate citizens Multiple Choice go beyond meeting society's expectations for ethical strategies and business behavior by fostering social benefit and balancing the interests of all. identify up-and-coming managers who have a future in local- or state-level politics. provide work-from-home options to working mothers residing in distant locations. create a democratic workplace whereby the voices of lower-level employees are heard through representation on the board of directors. develop and market products that are solely environmentally friendly.
Complete question:
Good corporate citizens
A. go beyond meeting society's expectations for ethical strategies and business behavior by fostering social benefit and balancing the interests of all.
B. are active participants in the political process.
C. identify up-and-coming managers who have a future in local- or state-level politics.
D. create a democratic workplace whereby the voices of lower-level employees are heard through representation on the board of directors.
E. All of these.
Answer:
Good corporate citizens : go beyond meeting society's expectations for ethical strategies and business behavior by fostering social benefit and balancing the interests of all.
Explanation:
Economic obligations are focused on the assumption that strong and legitimate standards are met; that they are completely consistent with all local, regional, federal and foreign regulations; and that they are a decent, law-abiding business citizen who does not merely comply with the moral requirements of society.
Corporate responsibility or sustainability, businesses are two out the of three respondents required corporations to move outside their conventional is sometimes used to express the notion that fulfilling society's standards is part of a business that creates a difference, a business that does amazing things around the world.
Final answer:
Good corporate citizenship involves companies going beyond just meeting ethical standards to actively foster social and environmental benefits, balancing various stakeholder interests. It encompasses employee well-being, social responsibility, and sustainable environmental practices.
Explanation:
The question centers on the concept of good corporate citizenship, which involves companies going beyond the minimum requirements of ethical strategies and business behavior to foster social benefit and balance the interests of all stakeholders. Genuine corporate citizenship touches on various areas such as ethical business practices, social responsibility, employee well-being, and environmental stewardship. In the context of today's multifaceted business landscape, this is a critical part of business ethics that examines the moral implications of corporate decisions and actions.
Modern corporations must navigate the challenges of addressing social, economic, and environmental issues within their strategies. This can include implementing policies that support work-family balance, as evidenced by companies like IBM and Lucent Technologies, and engaging in practices that advocate for environmental sustainability, as done by corporations like Amazon and Samsung. The moral obligations of corporations might also include ensuring ethicality in emerging technologies, as embodied by the IEEE-CS's Software Engineering Code of Ethics for software engineers.
Involving all stakeholders, from employees to the broader community, in the corporate decision-making process and fulfilling corporate responsibility are fundamental to becoming exceptional corporate citizens. Corporations have a responsibility not just to their shareholders but also to their customers, employees, and the society at large, including fostering sustainable practices and acting as stewards of the environment.
All other things being equal, a company that sells multiple products should attempt to structure its sales mix so the greatest portion of the mix is composed of those products with the highest _______.
Answer: contribution margin
Explanation:
The contribution margin is the incremental money that is generated for each product or unit sold after the variable portion of the costs of the firm's has been deducted. The contribution margin is calculated as the subtraction of the variable cost per unit from the selling price per unit.
The contribution margin shows how the contribution of a particular product to the profit of the company. It shows the profit potential of a product that is offered by a company and also shows the number of sales that can help to cover the fixed cost of the company. The remaining revenue gotten after the fixed cost has been covered is the profit generated.
Contribution margin= Sales revenue - Variable cost
In April 2017, PetSmart agreed to make the largest e-commerce acquisition in history to date, putting a deal in place to snatch up fast-growing pet food and product site Chewy. com for $3.35 billion. The acquisition premium for this particular deal can be calculated as the amount by which the price PetSmart offered for Chewy.com exceeded the _______.A. amount paid as a down payment for Chewy.com that was to be held in escrow until closing.B. difference between the amount that was offered for Chewy.com and the amount that was held in escrow to complete the deal.C. preacquisition market value of Chewy.com.D. fair market value of similar companies in the same geographic locale as Chewy.com.E. comparable value of similar companies to Chewy.com within the same market.
Answer: C. preacquisition market value of Chewy.com.
Explanation:
The Acquisition Premium that a company that is acquiring another pays is generally the Amount that that was paid minus the amount that the company being acquired was worth before it was purchased.
For Instance, assuming Chewy.com was valued at $3.25 billion before the Acquisition by PetSmart then the Acquisition Premium is,
= $3.35 billion - $3.25 billion
= $100 million.
In the balance sheet, this premium will more often than not be recorded as Goodwill which is defined as an Intangible Asset that is generated when a company buys another company for more than it is worth. That incremental value is the Goodwill.
Final answer:
The acquisition premium for PetSmart's acquisition of Chewy.com can be calculated by comparing the purchase price offered to Chewy.com's preacquisition market value, which is the company's value before the acquisition bid. The correct option is (C).
Explanation:
The acquisition premium for the deal where PetSmart agreed to acquire Chewy.com can be calculated as the amount by which the price PetSmart offered for Chewy.com exceeded the preacquisition market value of Chewy.com.
The preacquisition market value refers to the valuation of a company before any acquisition-related premiums are added. This is significant because it provides a baseline for the original worth of the company prior to any speculation or negotiation that may drive up its price during a takeover bid.
Acquisition premiums are thus the extra amount that buyers are willing to pay over and above this original preacquisition value to gain control of the company.
n much of the United States and Canada, logging takes place in both privately owned and government-owned forests. a. Privately owned forests are: private, nonrival, and excludable. public, rival, and excludable. private, rival, and nonexcludable. private, rival, and excludable
Answer:
Private, rival and excludable.
Explanation:
Privately owned forests are having the following characteristics:
(i) Rival: If one person consumes a good then this will reduce the quantity of good available to others which means that less good is available to others for consumption.
(ii) Excludable: This characteristic states that owner of a good can restrict or exclude others from the consumption of a good.
Since it is a private forests, the owner restrict others to steals the logs from his property and this make it excludable. Therefore, these two features stated in the private forests indicating that it is a private good.
Answer:
Private, Rival, Excludable
Explanation:
Since the forests are privately owned, they are private goods.
Excludable goods are those which can be feasibly prevented to be used by non payers. The private forest is being excluded from access by private owners, for forest & its resources safety (no stealing). So, it is excludable.
Rival goods are those, whose consumption by a consumer reduces their availability to be used by other consumers. Logged woods or any other forest resources extracted by one consumer, reduces their available quantity for other forest users. So, it is rival.