Answer:
B. Paul Lining has been named Director of Public Works.
Explanation:
If we need to advertize the most important information to the public, the nthe director of publc works are unnecessary information for the public.
They need to know that it is a metter of highly importance to boil water before consumption and why.
Answer:
The correct answer is letter "B": Paul Lining has been named Director of Public Works.
Explanation:
For a 15-second Public Service Announcement on drinking water safety, the conditions of how water should be drunk must be pointed out. Consequences of not doing that and factual data supporting those ideas could be ideal to draw peoples' attention and to generate an immediate change in their habits. Informing who is the new chief of that service seems irrelevant for that purpose.
Kanban is a term used to indicate some type of Visual Signal in the replenishment process. Which statement best describes the use of Kanban in reducing inventories in a Just-in-Time type of Operation? A. An operator asks the next station's operator to help him fix his machine. B. A supervisor signals to several work centers that the production rate should be changed. C. A "supplier" work center signals the downstream workstation that a batch has been completed. D. A "customer" work center signals to the "supplier" workstation that more parts are needed. E. A supervisor tells the operators to stay busy and start producing parts for next month.
Answer:
D. A "customer" work center signals to the "supplier" workstation that more parts are needed.
Explanation:
The Kanban system or procedure is based in signals that travel with the product all over its production process from the start up to the final client.
When a "customer work center" takes away some material from the warehouse, the "kanban" or signal travels with the material. So this is a "pull" system guided by the demand.
The signal (kanban) is how the client let the supply work center know that a new material is needed in the warehouse.
For all of this, de correct answer is D.A "customer" work center signals to the "supplier" workstation that more parts are needed.
Final answer:
Kanban is used as a visual signal to manage the replenishment process and reduce inventories in a Just-in-Time type of operation which is Option D. The customer work center signals the supplier workstation when more parts are needed.
Explanation:
In a Just-in-Time type of operation, Kanban is used as a visual signal to manage the replenishment process and reduce inventories. The best description of the use of Kanban in this context is option D: A 'customer' work center signals to the 'supplier' workstation that more parts are needed.
Kanban operates on the principle of pull-based production, where each workstation only produces parts when there is a demand for them. The 'customer' work center initiates a Kanban signal to the 'supplier' workstation when it requires more parts. This ensures that inventory levels are kept low and production is aligned with demand.
For example, in a car manufacturing plant, if the assembly line requires more tires, the 'customer' work center would send a Kanban signal to the 'supplier' workstation responsible for producing tires.
Opportunity cost is best defined as: A. the monetary price of any productive resource. B. the amount of labor that must be used to produce one unit of any product. C. the ratio of the prices of imported goods to the prices of exported goods. D. the amount of one product that must be given up to produce one more unit of another product.
Answer:
D. The amount of one product that must be given up to produce one more unit of another product.
Explanation:
Opportunity cost is defined as the potential benefits that you would recieve if you choose one option over another. This is an economic term that can easily be applied in our day to day lives: Ex. When you choose to study over work, the opportunity cost is represented by the money you could earn as payment for your work.
In business, companies must decide whether they produce a wide range of products or services or if they focus their resources in producing those products in which they are more efficient and would represent higher earnings.
The opportunity cost is defined as the amount of one product that must be given up to produce one more unit of another product.
What does the opportunity cost?The opportunity cost is defined as the cost of the next best alternatives, which means the amount of one product must be given up to produce one more unit of another product,
Giving up one opportunity and taking another is done to get more benefits among the other alternative.
Example:
Roman is a manufacturer of garments, here he has two choices, either to manufacture jeans with a cost of 150 per jeans or to manufacture trousers with the cost of 140 per trousers.
Here, the difference between the cost of jeans and trousers is the opportunity cost for him.
Therefore, Option D is correct.
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Four analysts cover the stock of Fluorine Chemical. One forecasts a 6% return for the coming year. The second expects the return to be negative 6%. The third predicts a return of 8%. The fourth expects a 2% return in the coming year. You are relatively confident that the return will be positive but not large, so you arbitrarily assign probabilities of being correct of 35 % comma 8 %, 17 %, and 40%, respectively, to the analysts' forecasts. Given these probabilities, what is Fluorine Chemicals expected return for the coming year
Answer:
Expected return = 3.78%
Explanation:
Given:
Expected returns Probabilities of being correct
6% 35%
- 6% 8%
8% 17%
2% 40%
Now,
Expected return is calculated as:
= Summation of [ Return × Probability ]
therefore,
Expected return
= ( 0.06 × 0.35 ) + ( -0.06 × 0.08 ) + ( 0.08 × 0.17 ) + ( 0.02 × 0.40 )
= 0.021 - 0.0048 + 0.0136 + 0.008
= 0.0378
or
= 0.0378 × 100%
or
Expected return = 3.78%
The expected return of Fluorine Chemicals for the coming year, considering the given probabilities and forecasts, is 3.78%
Explanation:To calculate the expected return of Fluorine Chemicals, you would need to multiply each analyst's forecast by their respective probability of being correct, and then add these results together. The formula to achieve this is as follows: (Analyst 1's forecast * Analyst 1's probability) + (Analyst 2's forecast * Analyst 2's probability) + (Analyst 3's forecast * Analyst 3's probability) + (Analyst 4's forecast * Analyst 4's probability). Plugging in the given values gives: (6*0.35) + (-6*0.08) + (8*0.17) + (2*0.40) = 2.1 - 0.48 + 1.36 + 0.8 =
3.78%
Therefore, given these probabilities, the expected return for Fluorine Chemicals for the coming year is 3.78%
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Before the year began, Butler Manufacturing estimated that manufacturing overhead for the year would be $176,400 and that 13,800 direct labor hours would be worked. Actual results for the year included the following: Actual manufacturing overhead cost $185,000 Actual direct labor hours 14,600 The predetermined manufacturing overhead rate per direct labor hour is closest to
Answer:
manufacturing overhead rate =$12.78
Explanation:
Giving the following information:
Butler Manufacturing estimated that:
Manufacturing overhead $176,400
Direct labor hour 13,800.
Actual results for the year:
The actual manufacturing overhead costs $185,000.
Actual direct labor hours 14,600.
We need to calculate the predetermined manufacturing overhead rate per direct hour
manufacturing overhead rate = 176400/13800hours= $12.78
Big Sky Sports sells hunting and fishing equipment and provides guided hunting and fishing trips. Big Sky Sports is owned and operated by Joe Flannery, a well-known sports enthusiast and hunter. Joe’s wife, Pam, owns and operates Glacier Boutique, a women’s clothing store. Joe and Pam have established a trust fund to finance their children’s college education. The trust fund is maintained by Kalispell State Bank in the name of the children, Trey and Brooke.
a. For each of the following transactions, identify which of the entities listed should record the transaction in its records:
Glacier Boutique
Kalispell State Bank
Big Sky Sports
None of the above
1. Pam deposited a $2,000 personal check in the trust fund at Kalispell State Bank.
2. Pam purchased two dozen spring dresses from a Spokane designer for a special spring sale.
3. Joe paid a breeder’s fee for an English Springer Spaniel to be used as a hunting guide dog.
4. Pam authorized the trust fund to purchase mutual fund shares.
5. Joe paid a local doctor for his annual physical, which was required by the workmen’s compensation insurance policy carried by Big Sky Sports.
6. Received a cash advance from customers for a guided hunting trip.
7. Pam paid her dues to the YWCA.
8. Pam donated several dresses from inventory for a local charity auction for the benefit of a women’s abuse shelter.
9. Joe paid for dinner and a movie to celebrate their thirtieth wedding anniversary.
10. Joe paid for an advertisement in a hunters’ magazine.
b. What is a business transaction?
Answer:
(a)
1. Kalispell State Bank
2. Glacier Boutique
3. Big Sky Sports
4. Kalispell State Bank
5. Big Sky Sports
6. Big Sky Sports
7. None of the above
8. Glacier Boutique
9. None of the above
10. Big Sky Sports
(b) Business transactions refers to the transactions that are related to only business, such as purchase of land, machinery, goods for business purposes. Any type of personal transaction is not included in business transaction.
The entities involved in each transaction.
Explanation:a. Glacier Boutique: 1. Pam deposited a $2,000 personal check in the trust fund at Kalispell State Bank. 2. Pam purchased two dozen spring dresses from a Spokane designer for a special spring sale. 3. Pam authorized the trust fund to purchase mutual fund shares. 7. Pam paid her dues to the YWCA. 8. Pam donated several dresses from inventory for a local charity auction for the benefit of a women’s abuse shelter. 10. Joe paid for an advertisement in a hunters’ magazine.
Kalispell State Bank: 1. Pam deposited a $2,000 personal check in the trust fund at Kalispell State Bank.
Big Sky Sports: 3. Joe paid a breeder’s fee for an English Springer Spaniel to be used as a hunting guide dog. 5. Joe paid a local doctor for his annual physical, which was required by the workmen’s compensation insurance policy carried by Big Sky Sports. 6. Received a cash advance from customers for a guided hunting trip. 10. Joe paid for an advertisement in a hunters’ magazine.
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Sheridan Repair Shop had the following transactions during the first month of business as a proprietorship. Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Aug. 2 Invested $11,290 cash and $2,740 of equipment in the business. 7 Purchased supplies on account for $450. (Debit asset account.) 12 Performed services for clients, for which $1,303 was collected in cash and $689 was billed to the clients. 15 Paid August rent $634. 19 Counted supplies and determined that only $263 of the supplies purchased on August 7 are still on hand.
Final answer:
Singleton Bank alters its balance sheet by lending $9 million to Hank's Auto Supply, with the loan noted as an asset. The deposit and reserve levels of First National also rise by the same amount, and they are able to lend out funds beyond the required 10% reserve.
Explanation:
Understanding Singleton Bank's Balance Sheet with a Loan to Hank's Auto Supply
Singleton Bank has made significant changes to its balance sheet by issuing a loan to Hank's Auto Supply. The lent amount of $9 million is recorded as an asset, contributing to interest income for Singleton Bank. However, Hank cannot take this sum in cash; instead, a cashier's check is provided, which Hank deposits into First National's bank account.
Consequently, First National experiences an increase in deposits and reserves by $9 million. According to regulatory requirements, First National must maintain a 10% reserve, but it can loan out the remaining funds. This scenario exemplifies the way banks contribute to the money supply through fractional reserve banking.
Gia, Inc., has sales of $679,000, costs of $341,000, depreciation expense of $85,000, interest expense of $52,500, and a tax rate of 22 percent. (Do not round intermediate calculations.) What is the net income for the firm? Suppose the company paid out $40,500 in cash dividends. What is the addition to retained earnings?
Answer:
Net Income $156,390
Addition to Retained Earnings $115,890
Explanation:
Income Statement
Sales $679,000
Cost of goods sold -$341,000
Depreciation Expenses -$85,000
Gross Profit $253,000
Interest Expenses -$52,500
Net Income BEFORE Taxes $200,500
Tax RATE 22% -$44,110
Net Income $156,390
Dividens -$40,500
Retained Earnings $ 115,890
Final answer:
The net income for Gia, Inc. is $156,390 after accounting for all expenses and taxes. The addition to retained earnings is $115,890 after paying out dividends.
Explanation:
Calculating Net Income and Addition to Retained Earnings
To calculate the net income for Gia, Inc., we need to consider all relevant income and expenses. We start with the sales and subtract costs, depreciation expense, and interest expense. Afterwards, we calculate the taxes owed and subtract that from the pre-tax income. Here's the breakdown:
Sales: $679,000Costs: -$341,000Depreciation Expense: -$85,000Interest Expense: -$52,500Pre-Tax Income: $200,500Tax (22%): -$44,110Net Income: $156,390For the addition to retained earnings, we start with the net income and subtract the dividends paid out to shareholders:
Net Income: $156,390Dividends Paid: -$40,500Addition to Retained Earnings: $115,890he Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount Sales $ 1,107,000 Selling price per pair of skis $ 410 Variable selling expense per pair of skis $ 45 Variable administrative expense per pair of skis $ 17 Total fixed selling expense $ 155,000 Total fixed administrative expense $ 110,000 Beginning merchandise inventory $ 70,000 Ending merchandise inventory $ 100,000 Merchandise purchases $ 280,000 Required: 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution margin per unit?
Answer:
Instructions are listed below
Explanation:
1) The general structure of an income statement proceeds as follow:
Revenue/Sales (+)
Cost of Goods Sold (COGS) (-)
=Gross Profit
Marketing, Advertising, and Promotion Expenses (-)
General and Administrative (G&A) Expenses (-)
=EBITDA
Depreciation & Amortization Expense (-)
=Operating Income or EBIT
Interest (-)
Other Expenses (-)
=EBT (Pre-Tax Income)
Income Taxes (-)
=Net Income
In this exercise:
Revenues= 1107000
COGS= Beginnig inventory + purchase - ending inventory= 250000
Gross profit= $857000
Administrative expense= $17 *2700q+110000= 155900
Selling expense= $155,000 + 45*2700q= 276500
EBITDA= 424600
2)A Contribution Margin Income Statement is a special format of the income statement that segregates the variable and fixed expenses involved in running a business. It shows the revenue generated after deducting all variable and fixed expenses separately.
Sales= 1107000
Variable costs:
Cost of goods sold= 250000
Variable Selling expense= $45*2700= 121500
Variable administration expense= 17*2700= 45900
Total variable costs= 417400
Contribution Margin= 689600
Fixed costs:
Selling expense= 155000
administration expense= 110000
Total fixed cost= 265000
Net profit= 424600
3) Unitary contribution margin= contribution margin/Q= 689600/2700= $255.41
For the fiscal year ended December 31, 2016, Alpha Company had credits sales that amounted to $300,000. Historically, 2.5% of credit sales are uncollectible. Alpha Company uses the percentage of sales method to determine its uncollectible accounts. The balance before any end of the year adjusting entry in the Allowance for Uncollectable Accounts is a credit value of $1,575. Use this information to prepare the adjusting General Journal entry (without explanation) for the fiscal year.
Answer:
uncollectible accounts expense 5925
Allowance uncollectible accounts 5925
Explanation:
credit sales 300000
Uncollectible 2,50%
Uncollectible account 7500
Uncollectible account credit 1575
Adjustment 5925
uncollectible accounts expense 5925
Allowance uncollectible accounts 5925
Which of the following statements is true of standardized promotions?
a. They convey messages according to the country-of-origin effect.
b. They reduce the costs incurred by companies for promotional efforts.
c. They are proven to be more effective than localized promotions in all countries.
d. They display different content through similar modes of promotion.
Answer:
The correct answer is B: They reduce the costs incurred by companies for promotional efforts.
Explanation:
Global standardization in marketing is a standardized marketing strategy that can be used globally. This type of marketing strategy conforms to work across different cultures and countries to sell a product. The company uses standard brands, formulations, packaging, positioning and distribution in its global markets. Products that have virtually universal demand in all countries and cultures make standardized marketing effective.
Standardized marketing for global companies typically offers significant cost benefits. If the same message works universally, you don't have to spend money to develop customized marketing messages. A strong brand can have the same effect in different areas around the world. What makes a strong presence in one country, can have the same effect in other countries.
The true statement about standardized promotions is that they reduce the costs incurred by companies for promotional efforts. They achieve economies of scale but may not be effective in all markets due to cultural differences and are not tailored to the country of origin.
Standardized promotions involve using the same promotional strategy and materials across different countries and cultures. This approach aims to achieve cost efficiency by exploiting economies of scale in production and distribution of promotional materials. However, they are not necessarily effective in all countries due to cultural differences, and in some cases, the content may be misunderstood or less appealing to the local audience.
Furthermore, such promotions do not convey messages according to the country-of-origin effect, as they do not typically tailor the message to the local culture or market specifics. Standardized promotions are not proven to be more effective than localized promotions in all countries; effectiveness can vary greatly depending on a range of factors, including cultural nuances and consumer behavior. Lastly, standardized promotions do not inherently display different content through similar modes of promotion; instead, they usually offer the same content across different markets.
Frightproof Commuter Airlines is considering adding a new flight to its current schedule from Metro to Hicksville. This route has the following prices and costs. Selling price per passenger per flight $ 70 Variable cost per passenger per flight $ 20 Fixed cost per flight $ 4,400 Income tax rate 30 % Required: a. Compute Frightproof's break-even point in number of passengers per flight. b. How many passengers per flight must Frightproof have to earn $1,750 per flight after taxes?
Answer:
Instructions are listed below
Explanation:
Giving the following information:
Selling price per passenger per flight $ 70
Variable cost per passenger per flight $ 20
Fixed cost per flight $ 4,400
Income tax rate of 30 %
1) Break-even point= fixed costs/ controbution margin
Break-even point= 4400/(70-20)= 88 passengers
2) Break-even points= {[Fixed costs + [net profit/(1-t)]}/contribution margin
Break-even points= [4400 + (1750/0.70)]/50= 138 passengers
Jack has worked for Widgets, Inc. for 35 years, and he is the only employee who can decipher the old coding on products in the warehouse before computerization took place. Due to the economic downturn, Jack was forced into early retirement. What type of knowledge will Widgets lose?
Answer: Human capital
Explanation:
Human capital is the stock of habits, knowledge, social and personality attributes (including creativity) embodied in the ability to perform labour so as to produce economic value. Human capital is unique and differs from any other capital. It is needed for companies to achieve goals, develop and remain innovative. Companies can invest in human capital for example through education and training enabling improved levels of quality and production . Human capital is an intangible asset or quality not listed on a company's balance sheet. It can be classified as the economic value of a worker's experience and skills. This includes assets like education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.
The concept of human capital recognizes that not all labor is equal. But employers can improve the quality of that capital by investing in employees the education, experience, and abilities of employees all have economic value for employers and for the economy as a whole . In the case for Jack , 35 years of experience is very valuable human capital and also Jack’s skill are very scarce in general , so the company is losing .
Ray’s Satellite Emporium wishes to determine the optimal order size for its best-selling satellite dish (Model TS111). Ray has estimated the monthly demand for this model to be 230 units. This model costs Ray $396 to purchase from his supplier. His annual cost to carry inventory is 10% and he estimates that orders cost $38 to process. If Ray used an order quantity of 2000 instead of the optimal order quantity, how much money would he be wasting each year?
Answer:
It waster $74,941.2 per year
Explanation:
The procedure is as follow:
We calcualte the Economic order QuantityThen we calculatethe cost for EOQ and current order sizecompare to know the loss for inefficiency in inventory1.- EOQ
[tex]Q_{opt} = \sqrt{\frac{2DS}{H}}[/tex]
D = annual demand 230 units x 12 month = 2,760
S= setup cost = ordering cost = 38
H= Holding Cost= 10% of unit cost 39.60
[tex]Q_{opt} = \sqrt{\frac{2*2760*38}{39.6}}[/tex]
EOQ = 72.78028371 = 73
2.- Calculate Cost:
EOQ cost:
orders 2,760 / 73 = 37.80 = 38 order x $38 each = $1,444
holding cost: 73 x 39.6 = $2,890.8
Total: 1,444 + 2,890.8 = 4,334.8
Current Cost:
orders: 2,760 / 2,000 = 1.* = 2 order per year x $38 each = $76
holding cost: 2,000 x 39.6 = 79.200
Total 79,200 + 76 = 79,276
3.- Difference:
79,276 - 4,334.8 = 74,941.2
n May 1, 2009 Giltus Advertising Company received $1,500 from Julie Bee for advertising services to be completed April 30, 2010. The Cash receipt was recorded as unearned fees and at December 31, 2009, $1,000 of the fees had been earned. The adjusting entry on December 31 Year 1 should include:Select one:a. A debit to Unearned Fees for $500.b. A credit to Unearned Fees for $500.c. A credit to Earned Fees for $1,000.d. A debit to Earned Fees for $1,000.e. A debit to Earned Fees for $500.
Answer:
c. A credit to Earned Fees for $1,000.
Explanation:
As for the information provided, we know
Unearned income is an income account, and therefore, will be credited at the time of recording.
Further, it is told that as on 31 December, 2009 out of the total unearned income of $1,500, $1,000 is earned.
Since it is earned it has to be accounted in current year, for this earned income will be credited and unearned income will be reversed for the amount of earned income that is for $1,000.
Consider the following production possibilities frontier model for an economy that produces only two goods: barley and tablets. Which of the following is true regarding this economic model? The fact that there are only two goods produced in this theoretical economy, when, in reality, economies produce many more types of goods, means this model is generally useless. This PPF is not an economic model. In order to construct such a model, an economist would need real life data regarding countries that only produce two goods. The fact that there are only two goods produced in this theoretical economy is a simplifying assumption that still allows economists to demonstrate key economic concepts.
Answer:
The fact that there are only two goods produced in this theoretical economy is a simplifying assumption that still allows economists to demonstrate key economic concepts.
Explanation:
The purpose of economic models is not exactly to portray complex reality, but to produce insights into how it works. Creating a model with two countries that produce thousands of products would be methodologically unfeasible. Economists therefore adopt simplifications to explain concepts and create insights into how the real economy works.
The Production Possibilities Frontier (PPF) is a simplified economic model that demonstrates key economic principles, such as choice, opportunity cost, and efficiency. Despite considering only two goods, it is useful in depicting scenarios in real-world economies and understanding economic growth.
Explanation:The statement that an economic model such as the
Production Possibilities Frontier
(PPF) is generally useless because it only considers two goods is incorrect. The PPF is an economic model, and it indeed uses a simplifying assumption by considering only two goods. This is intended to help illustrate key economic concepts cleanly, not to fully represent complex, real-world economies. The PPF model maps out various combinations of two goods that a society could potentially produce, assuming it uses its resources to maximum efficiency. This tool helps to depict scenarios of scarcity, choice, and opportunity cost in economic planning. Additionally, society's choice along the PPF reflects its preference mix of the goods, which is an indication of
allocative efficiency
. The economic growth such as increase in resources and improvement in technology shifts the PPF outwards, allowing more production. Thus, even with its simplifications, the PPF model holds important value in economic studies.
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S&L Financial buys and sells securities that it typically classifies as available-for-sale. On December 27, 2018, S&L purchased Coca-Cola bonds at par for $715,000 and sold the bonds on January 3, 2019, for $717,500. At December 31, the bonds had a fair value of $713,500. When it purchased the Coca-Cola bonds, S&L Financial decided to elect the fair value option for this investment. What pretax amounts did S&L include in its 2018 and 2019 net income as a result of this investment (ignoring interest)?
Answer:
2018 loss for 1,500
2019 gain for 4,000
Explanation:
purchase at 715,000
December 31th 713,500
adjusting entry december 31th
loss on investment 1,500 debit
marketable securities 1,500 credit
january 3rd, 2019
cash 717,500 debit
gain on investemnt 4,000 credit
martetable securities 713,500 credit
to record gain on investment
In the JK partnership, Jacob's capital is $140,000, and Katy's is $40,000. They share income in a 3:2 ratio, respectively. They decide to admit Erin to the partnership. Each of the following questions is independent of the others.
Refer to the information provided above. Erin invests $52,000 for a one-fifth interest. What amount of goodwill will be recorded?
A. $7,000
B. $28,000
C. $50,000
D. $80,000
Answer:
The correct option is (B)
Explanation:
Given:
Existing partner's total capital is $180,000 (140,000 + 40,000)
New partner, Erin's contribution is $52,000
So new paid in capital is $232,000 (180,000 + 52,000)
Required capital = [tex]\frac{Investment\ by\ Erin}{interest}[/tex]
Interest in % is 20% [tex]\left (\left ( \frac{1}{5} \right )\times 100 \right )[/tex]
Required capital = [tex]\frac{52,000}{0.2}[/tex]
= $260,000
Goodwill = Required capital - paid in capital
= 260,000 - 232,000
=$28,000
So, amount of goodwill is $28,000.
Beginning three months from now, you want to be able to withdraw $3,400 each quarter from your bank account to cover college expenses over the next four years. If the account pays .56 percent interest per quarter, how much do you need to have in your bank account today to meet your expense needs over the next four years? (
To meet college expenses over the next four years with quarterly withdrawals of $3,400 and a 0.56% interest rate, you would need approximately $302,670.60 in your bank account today.
Explanation:Retirement Account CalculationTo solve for the amount needed today to meet the college expense needs over the next four years, we will use the formula for the present value of an annuity due to the quarterly withdrawals. The formula is PV = PMT × ((1 - (1 + r)^{-n}) / r)× (1+r), where PV is the present value (initial amount needed), PMT is the quarterly withdrawal amount, r is the quarterly interest rate, and n is the total number of withdrawals.
In this scenario, PMT is $3,400, r is 0.56% or 0.0056 in decimal form, and n is 4 years times 4 quarters/year, which equals 16 quarters. Using the formula, we calculate:
Therefore, you would need approximately $302,670.60 in your bank account today to meet your expense needs over the next four years with a quarterly interest rate of 0.56 percent.
Friendly’s Quick Loans, Inc., offers you "three for four or I knock on your door." This means you get $3 today and repay $4 when you get your paycheck in one week (or else). a. If you were brave enough to ask, what APR would Friendly’s say you were paying? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What’s the effective annual return Friendly’s earns on this lending business? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
a. The APR would be approximately 1837.96%.
b. Effective Annual Return≈ 2.5284 * [tex]10^{97}[/tex] - 1
a. To calculate the APR (Annual Percentage Rate), we can use the formula:
APR = [(Total Interest / Loan Amount) / Number of Days in Loan Period] * 365 * 100
Given:
Loan Amount (L) = $3
Total Repayment (P) = $4
Number of Days in Loan Period (n) = 7 days
Total Interest = Total Repayment - Loan Amount = $4 - $3
= $1
APR = [($1 / $3) / 7] * 365 * 100
≈ 1837.96%
So, the APR would be approximately 1837.96%.
b. The effective annual return can be calculated using the formula:
Effective Annual Return = [tex](1 + APR / 100)^{365} - 1[/tex]
Given the APR calculated in part (a), which is approximately 1837.96%:
Effective Annual Return = [tex](1 + 1837.96 / 100)^{365} - 1[/tex]
≈ [tex]2.5284 * 10^{97} - 1[/tex]
The effective annual return is an extremely high value, but it's important to note that these types of lending terms are highly exploitative and should be avoided due to their exorbitant interest rates.
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Final answer:
The APR Friendly’s Quick Loans would claim you're paying on a one-week loan where you borrow $3 and repay $4 is a whopping 1733.33%. The effective annual return they earn on this business, taking into account compounding, is even significantly higher, showcasing the costliness of such loans.
Explanation:
The question involves calculating the annual percentage rate (APR) and the effective annual return that Friendly’s Quick Loans, Inc., would earn on a loan where you borrow $3 and repay $4 in a week. To calculate the APR, we first recognize that the interest for one week is $1 ($4 repayment - $3 loan = $1 interest). To find the weekly rate, we divide the interest by the principal amount, which is $1/$3 = 0.3333 or 33.33%. However, since APR is expressed on an annual basis, and there are 52 weeks in a year, we multiply the weekly rate by 52, resulting in an APR of 1733.33%.
To calculate the effective annual return, we use the formula for the effective annual rate (EAR), which accounts for compounding. The EAR formula is (1 + i)ⁿ - 1, where i is the periodic interest rate, and n is the number of periods in a year. Substituting the weekly rate into the formula gives us (1 + 0.3333)⁵² - 1, which yields a significantly high return rate, indicating how lucrative and expensive this type of lending can be for the borrower and profitable for the lender.
In a perfectly competitive market with 100 identical firms producing at market price p1 A. the supply curve is more elastic than if there were only 50 identical firms. B. the supply curve is flatter than if there were only 50 identical firms. C. the firms have identical marginal costs. D. All of the above.
Answer:
D
Explanation:
A. The supply curve is more elastic with 100 firms than with 50 because if there are more firms then each one have less market power and for instance they are more sensible to price changes.
B. Because the supply curve is more elastic it looks more flatter. This means that a small change in price will traduce in a greater responde in the quantity supplied.
C. In a perfectly competitive market firms sell an homogeneous product then all of them face identical marginal costs.
In a perfectly competitive market with 100 identical firms, the supply curve is more elastic and flatter compared to if there were only 50 identical firms; however, it's not necessarily true that firms have identical marginal costs. Hence, the correct options are A and B.
In a perfectly competitive market, the question is how the supply curve would differ with 100 identical firms producing at market price p1 compared to if there were only 50 identical firms. To address this:
A. The supply curve is indeed more elastic with 100 firms. Because elasticity is linked with the availability of substitutes, the presence of more firms implies a greater ability to increase output in response to a price increase.
B. The supply curve is flatter with 100 firms. A flatter supply curve signifies a higher level of elasticity. The cumulative effect of many firms being able to supply more means the industry as a whole can respond more noticeably to price changes, which is depicted as a flatter market supply curve.
C. It is not necessarily true that the firms have identical marginal costs. Although firms in perfect competition face the same market conditions and prices, their cost structures can still differ based on factors such as technology and efficiency.
Therefore, Option D 'All of the above' is not correct, because while A and B are true, C is not necessarily the case. The correct answer to the original question would be both A and B, but not C.
Bill, a local inventor, developed a diet pill that he believes will solve the obesity problem in the United States. Bill wants to create a new company, 50% owned by Bill and 50% owned by a major drug company. Although he believes the pills are safe, Bill is concerned about liability if someone becomes sick or dies. The best form of business organization for the new company is
Answer:
Corporation
Explanation:
The corporations have a limited liability. They answer until they investmnet amount. While a partnership will have unlimited liability. A corporation on which Bill has 50% of the shares and 50% are own by the major drug company will provide the desired capital structure and limited liability
If the CPI was 95 in 1955 and is 475 today, then $100 today purchases the same amount of goods and services as...
a. $20.00 purchased in 1955.
b. $4.75 purchased in 1955.
c. $500 purchased in 1955.
d. $95.00 purchased in 1955.
Answer:
The correct answer is option a.
Explanation:
The CPI or consumer price index is a tool to measure inflation in the economy. It includes a basket of goods and services generally consumed by households. Changes in the price of these goods and services are calculated to measure the inflation rate.
In the year 1955, the CPI was 95.
In the current year, the CPI is 475.
This means that today $100 will be able to purchase
= [tex]\$ 100 \ \times\ \frac{95}{475}[/tex]
= $20
$100 in current year will be able to purchase the same amount of goods and services that $20 purchased in the year 1995.
The CPI is a measure of the average change over time in prices. $100 today would purchase the same amount as $4.21 in 1955.
Explanation:The CPI (Consumer Price Index) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Given that the CPI was 95 in 1955 and is 475 today, we can calculate the percentage increase in the CPI over this time period: (475 - 95) / 95 = 400 / 95 = 4.21.
This means that prices have increased by 4.21 times since 1955. So, $100 today would purchase the same amount of goods and services as $4.21 purchased in 1955.
Wizard Co. purchased two machines for $250,000 each on January 2, 2005. The machines were put into use immediately. Machine A has a useful life of 5 years and can only be used in one research project. Machine B will be used for 2 years on a research and development project and then used by the production division for an additional 8 years. Wizard uses the straight-line method of depreciation. What amount should Wizard include in 2005 research and development expense?
Answer:
75,000
Explanation:
The straight-linedepreciation is calculate by dividing the acquisition value over the useful life
Machine A useful life is for 5 years
250,000 / 5 years = 50,000 per year
Machine B useful life is:
2 years in development project and then 8 years in a production division
total useful life for 10 years
250,000/ 10 years = 25,000
Total development expense:
machine A depreciation 50,000 + machine B depreciation 25,000 = 75,000
development expense 75,000
acc depreciation machine A 50,000
acc depreciation machine B 25,000
Which of the following is true of financial accounting? It is primarily concerned with producing information for internal users. It does not follow any externally imposed rules. It strongly emphasizes providing information about future events. It focuses on overall firm performance, providing a more aggregated viewpoint.
Answer: It focuses on overall firm performance, providing a more aggregated viewpoint.
Explanation:
Financial accounting can be referred to as a specialized arm of accounting which keeps record of an organization's financial transactions. It tends to use standardized guidelines under which transactions are recorded, stated, summarized, and thus presented in a financial report or statement i.e. an income statement, balance sheet etc.
During the month of June, Blue Boutique had cash sales of $312,440 and credit sales of $183,612, both of which include the 7% sales tax that must be remitted to the state by July 15. Prepare the adjusting entry that should be recorded to fairly present the June 30 financial statements. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
sales revenue 32,452 debit
sales tax payable 32,452 credit
Explanation:
total sales:
cash sales: 312,440
credit sales 183,612
total 496,052
sales tax is 7%
So we have the following:
sales revenue x ( 1 + sales tax) = invoice nominal
so sales revenue: nominal / 1.07
496,052 / 1.07 = 463,600
now we can calculate sales tax by the difference or simply multiply by 7%
463,600 x 1.07 = 32,452
496,052 - 463,600 = 32,452
We will assume no sales tax entry was ever done along wiht the sales, so we will decrease revenue against sales tax payable.
According to the law of comparative advantage, what should be the distinguishing characteristics of the goods a nation imports?
(A) They have the lowest capital costs.
(B) They can be domestically produced cheaply.
(C) They cannot be domestically produced cheaply.
(D) They have the greatest domestic demand.
Answer:
The correct answer is option C.
Explanation:
The law of comparative advantage states that a country will produce and export the commodity it has a comparative advantage in producing.
In other words, if the country can produce good cheaply or at a lower opportunity cost.
The good that cannot be produced cheaply or has a higher opportunity cost will be imported from the country that produces it cheaply.
According to the law of comparative advantage, the distinguishing characteristics of the goods a nation imports should be that they cannot be domestically produced cheaply. Therefore, options (c) is accurate.
This principle suggests that nations should specialize in producing goods where they have a comparative advantage (lower opportunity cost) and trade for goods they produce less efficiently.
By focusing on producing what they do best, even if it's not the absolute best, countries can achieve greater efficiency and benefit from global trade. This leads to mutual gains as each nation concentrates on its strengths and imports goods that would be more costly to produce domestically.
Therefore, option (c) is accurate.
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ndicate in which part of the statement of cash flows each item would appear: operating activities, investing activities, or financing activities. (a) select a part of the statement of cash flows Cash received from customers. (b) select a part of the statement of cash flows Cash paid to stockholders (dividends). (c) select a part of the statement of cash flows Cash received from issuing new common stock. (d) select a part of the statement of cash flows Cash paid to suppliers. (e) select a part of the statement of cash flows Cash paid to purchase a new office building.
Answer:
(a) Cash received from customers = Cash flow from operating activities as this is the regular transaction of every business.
(b) Cash paid to stockholders = Cash flow from financing activities as this is the payment for any investment made by shareholders, in return when the shares are matured or treasury stock is purchased then, this is financing activity.
(c) Cash received from issuing new common stock = Cash flow from financing activity, as this will generate funds for the company, therefore it is a financing activity.
(d) Cash paid to suppliers = Cash flow from operating activities, this a regular payment in exchange of goods purchased, cash outflow.
(e) Cash paid to purchase a new office building = Cash outflow from investing activity, as this is an investment capital in nature, and will provide in return capital base or other income in form of rent.
Over the last century, U.S. real GDP per person grew at a rate of about...
a. 2 percent per year, so that it is now 2 times as high as it was a century ago.
b. 4 percent per year, so that it is now 8 times as high as it was a century ago.
c. 2 percent per year, so that it is now 8 times as high as it was a century ago.
d. 4 percent per year, so that it is now 2 times as high as it was a century ago.
Suppose that a politician wants to build more production facilities for solar power and wind power. At the same time, the politician is unwilling to cut any other programs. If the resources that would be used to produce the solar and wind power facilities are already being efficiently used in other programs, where is the point the politician is trying to reach located on the production possibilities frontier?
Answer:
The politician is trying to reach a point above the production possibility frontier.
Explanation:
Suppose that a politician wants to build more wind power and solar power production facilities. The resources that are to be spent on wind and power facilities are already being efficiently used in other programs. But the politician is not willing to decrease expanse on any other program.
We know that to increase expense on one alternative we need to decrease expense on others. If resources are being efficiently used, to spend on wind and solar power facilities the economy will need more resources.
This means that the politician is trying to reach a point higher than the production possibility frontier.
Final answer:
The politician aims to stay on the production possibilities frontier while increasing solar and wind power facilities, indicating a point of allocative efficiency but also facing the law of increasing opportunity cost as resources would have to be reallocated.
Explanation:
The point the politician is trying to reach on the production possibilities frontier (PPF) is one that is already on the frontier curve, assuming current resources are being efficiently used in other programs. Since the PPF represents all possible efficient combinations of two goods (in this case, production of solar and wind power vs. all other programs), the intention to build more production facilities for solar and wind power without cutting other programs means that the politician is trying to maintain an allocatively efficient point on the PPF. However, if the resources are truly being used efficiently elsewhere, then increasing production of solar and wind power would mean having to reallocate resources, potentially increasing the opportunity cost and causing a movement along the PPF. This change must come at the expense of some other production due to the law of increasing opportunity cost, as resources are transferred from the most efficient use to less efficient uses for the production of additional solar and wind power.
In the ABC partnership (to which Daniel seeks admittance), the capital balances of Albert, Bert, and Connell, who share income in the ratio of 5:3:2 are:
Albert 500000
Bert 300000
Connell 200000
Based on the preceding information, what amount of goodwill will be recorded if Daniel invests $450,000 for a one-third interest?
A. $0
B. $10,000
C. $50,000
D. $100,000
Answer: Option (c) is correct.
Explanation:
Given that,
Income sharing ratio = 5:3:2
Albert's capital = $500,000
Bert's capital = $300,000
Connell's capital = $200,000
If Daniel invests $450,000 for 1/3 rd interest then,
Total capital = $500,000 + $300,000 + $200,000
= $1,000,000
Therefore, total capital of the partnership will be;
= [tex]1,000,000\times\frac{3}{2}[/tex]
= $1,500,000
So,
Share of Daniel will be = $1,500,000 – $1,000,000
= $500,000
Hence,
Value of Goodwill = Share of Daniel - Amount invested by Daniel
= $500,000 - $450,000
= $50,000