Answer:
The correct answer is letter "A": Create a list of the things that you found to be different than what you expected during your visit and plan some strategies for adjusting to these differences.
Explanation:
To improve your cultural competence, it is a good idea to come up with a list of the aspects that you found different than expected so you can have a clear idea of what you may struggle with. From that point, you can determine what are the possible solutions for each aspect to adjust your cultural differences.
A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing.
For the students of the college, the visual appearance of the campus is (non-rival/rival) and (non-excludable/excludable). Thus, the visual appearance would be classified as a public good.
Suppose the college administrators estimate that the beautification initiative will cost $8,160. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 490 students, asking each of them their willingness-to-pay for the beautification project. The average willingness-to-pay, as revealed by the survey, is $17.
The benefit of the beatification initiative, as suggested by the survey, is $___. Because the estimated benefit is (less/greater) than the cost, the college administrators (should/should not) undertake the beautification initiative.
The calculation of the benefit of the beatification initiative relied on the ability of the administrators to accurately capture the true willingness-to-pay of each student.
Which of the following scenarios would cause the survey used by the college administrators to yield misleading willingness-to-pay data? Check all that apply.
_ Students are surveyed at random, using conventional survey and data-gathering methods.
_ Students believe that if the initiative does not happen, the funds for the initiative will not be spent elsewhere.
Answer:
Students believe that if the initiative does not happen, the funds for the initiative will not be spent elsewhere.
Explanation:
The visual appearance is both non rival and non excludable I.e. Pure public good
Benefit is 17*490=8.330
Benefit is greater than cost so college administrators should undertake the beautification initiative
The college administrators should undertake the beautification initiative as the estimated benefit is greater than the cost. The survey used may yield misleading data if students are surveyed randomly or if they believe the funds will not be used elsewhere.
Explanation:The benefit of the beautification initiative, as suggested by the survey, is calculated by multiplying the average willingness-to-pay ($17) by the number of students (490). Therefore, the benefit is $8,330. Since the estimated benefit is greater than the cost ($8,160), the college administrators should undertake the beautification initiative.
The survey used by the college administrators would yield misleading willingness-to-pay data if the students were surveyed at random, using conventional survey and data-gathering methods. This is because random sampling may not accurately capture the true willingness-to-pay of each student. Additionally, if the students believe that if the initiative does not happen, the funds for the initiative will not be spent elsewhere, their willingness to pay may be lower, leading to misleading data.
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A client was brought by ambulance into the emergency department. The client appears disoriented, pale, tachycardic, and hypotensive. There is excessive bleeding from the head and bruises across the check and abdomen. What is the priority step in managing this client?
Answer and Explanation: Here, in the given case/scenario the first and the main step in managing this particular client is to provide him or her with the basic life support in order for him/her to sustain while also soliciting to treat their hypovolemic shock. Hypovolemic shock is referred to as or referred to as an situation under which an individual tends to loose severe blood or fluid thus further making the heart unable to circulate enough blood.
if there is no direct evidence of an agreement to manipulate the competitive market between two CEOs, a prosecutor may use their calendars and subsequent actions that were not in the usual course of business as circumstantial evidence to prove the ________ requirement of an antitrust violation
a) meeting-of-the-minds
b) price-fixing
c) vertical restraint
d) horizontal restraint
Answer:
a) meeting-of-the-minds
Explanation:
Meeting-of-the-minds denotes intention of the parties entering into the contract.
Note: The previous concept is also referred to as mutual agreement. is a phrase in contract law used to describe the intentions of the persons forming the contract.
It refers to the situation where there is a common understanding in the formation of the contract.
Andrews Corp. ended the year carrying $100,338,000 worth of inventory. Had they sold their entire inventory at their current prices, how many more dollars of contribution margin would it have brought to Andrews Corp.?
To find the additional contribution margin that Andrews Corp. would have earned if they sold their entire inventory, multiply the value of the inventory by the contribution margin percentage.
Explanation:In order to calculate the additional contribution margin that Andrews Corp. would have earned if they sold their entire inventory, we need to know the contribution margin percentage. The contribution margin is the difference between the selling price and the variable cost per unit. Let's assume that the contribution margin percentage is 40%. To find the additional contribution margin, we multiply the value of the inventory by the contribution margin percentage: $100,338,000 x 0.40 = $40,135,200.
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Your grandfather made an investment of $4,000 the day you were born, as such starting to earn returns immediately. His assumption is that by investing in the average market, the investment account will earn an annual rate of 6%, which is a historical average. He will continue to make 18 more annual $1,500 deposits into this account for you, assuming you will earn the average 6% every year. Based on the above assumptions, what will be the balance of this account after the initial investment and the 18 annual returns earning the hypothetical 6%?
Answer:
[tex]Acumulated value=57,775.84[/tex]
Explanation:
this problem can be solved applying the concept of annuity, keep in mind that an annuity is a formula which allows you to calculate the future value of future payments affected by an interest rate.by definition the future value of an annuity is given by:
[tex]s_{n} =P*\frac{(1+i)^{n}-1 }{i}[/tex]
where [tex]s_{n}[/tex] is the future value of the annuity, [tex]i[/tex] is the interest rate for every period payment, n is the number of payments, and P is the regular amount paid
But there is an special thing to keep in mind and is the initial payment so we must to calculate the 4,000 in the future so we have:
[tex]Acumulated value=s_{n} +P*(1+i)^{n}[/tex]
[tex]Acumulated value=1,500*s_{18} +4,000*(1+0.06)^{18}[/tex]
[tex]Acumulated value=57,775.84[/tex]
The risk premium of a stock is not affected by its ________.
A) undiversifiable risk
B) typical risk
C) systematic risk
D) unsystematic risk
Answer:
correct option is D) unsystematic risk
Explanation:
solution
risk premium of a stock is not affected by unsystematic risk because unsystematic risk affects single company or the even entire industry but it is not present in other industries and it is also danger when it relates to particular security but risk premium of a stock is not effected by it
only systematic risk that affects the risk premium
Unsystematic risk is also known as diversifiable risk or non systematic risk
so here correct option is D) unsystematic risk
The risk premium of a stock is not affected by its systematic risk. It is only affected by unsystematic risk, which can be diversified away.
Explanation:The risk premium of a stock is not affected by its systematic risk. Systematic risk is the risk that is inherent in the entire market or a particular segment of the market, and it cannot be eliminated through diversification. The risk premium is the additional return that investors require for taking on the risk of investing in a particular stock.
On the other hand, unsystematic risk refers to risks that can be diversified away by holding a diversified portfolio of assets. It is specific to a particular company or industry and can be reduced or eliminated through diversification.
Therefore, the risk premium of a stock is only affected by unsystematic risk, not systematic risk.
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Stadford, Inc. is financed with 40 percent debt and 60 percent equity. This mixture of debt and equity is referred to as the firm's:
A. capital structure.
B. capital budget.
C. asset allocation.
D. working capital.
E. risk structure.
Answer: (A) Capital structure
Explanation:
The capital structure is basically refers to the overall financial operation in an organization for the growth of the company. The combination of the debt and the equity is basically known as capital structure.
The equity is basically refers to the common and the preferred stock and the debt is one of the form of bond issue.
Therefore, the mixture of 40 percent debt and the 60 percent of the equity is refers to capital structure.
The largest ________ in North America is the West Edmonton Mall in Alberta, Canada. It is home to more than 800 stores, the world’s largest indoor amusement park, more than 100 restaurants, a movie complex, and two hotels, all of which attract 30 million visitors each year.
Answer:
Regional Shopping Mall
Explanation:
A Shopping Mall is the one which is described as the agglomeration or group of different kind of stores, which are providing or offering numerous products, brands or services at one place or under a single roof.
Mall named West Edmonton is situated in Canada and in North America, it is the largest or biggest shopping mall . It has more than 800 shops, restaurants, amusement park and movie complex.
Explain whether you agree with the following statement:
"The dynamic aggregate demand and aggregate supply model predicts that a recession caused by a decline in AD will cause the inflation rate to fall. I know that the 2007 − 2009 recession was caused by a fall in AD, but the inflation rate was not lower after the recession. The prices of most products were definitely higher in 2008 than they were in 2007, so the inflation rate could not have fallen."
A. The statement is wrong because there must have been a supply shock if prices rose and there was a recession.
B. The statement is wrong because it is confusing the price level with the inflation rate.
C. The statement is correct as prices rose in 2008.
D. The statement is wrong because AD must have increased if prices were higher.
Answer:
B. The statement is wrong because the author is confusing the price level with the inflation rate.
Explanation:
To say that inflation rate falls only when price falls is a false assumption because fall in inflation rate clearly occured when the prices rose at a relatively slower speed than the previous year.
During the year, Coronado Boat Yard has incurred manufacturing costs of $420,000 in building three large sailboats. At year-end, each boat is about 70 percent complete. How much of these manufacturing costs should be recognized as expenses in Coronado Boat Yard’s income statement for the current year?
Answer:
Please see attachment
Explanation:
Please see attachment
Final answer:
Since the three sailboats built by Coronado Boat Yard are only 70% complete and unsold, none of the $420,000 manufacturing costs should be recognized as expenses in the current year's income statement.
Explanation:
The student's question concerns the recognition of manufacturing costs in an income statement for partially completed goods. In the scenario described, Coronado Boat Yard has incurred $420,000 in manufacturing costs for building three large sailboats that are each 70 percent complete. According to the matching principle in accrual accounting, expenses should be matched with the revenues they helped generate in the same period.
Since the boats are not completed and not sold yet, the expenses attributed to them should not be fully recognized in the income statement. Instead, they should be capitalized as work in progress (WIP) in the balance sheet. To determine the costs that should be recognized as expenses, one needs to consider any expenses directly attributable to the goods sold or the fraction of costs that pertain to completed projects.
If by the end of the year, none of the boats have been sold, then none of the $420,000 would typically be recognized as expenses in the income statement the costs will reside on the balance sheet as WIP until the boats are completed and sold, at which point costs will be moved to the expenses in the income statement.
When competing against other energy drinks like Red Bull and Monster, 5-Hour Energy is thinking through how to get its brand to occupy a clear, distinctive, and desirable place in its target customers’ minds. What problem is it trying to solve?
-Promotion
-Targeting
-Segmentation
-Positioning
Answer:
promotion
Explanation:
It is a problem of "positioning" which we're trying to solve.
Attempting to conflate with each other and creating a conceptual position within that mainstream consciousness regarding that your organization, its commodities, as well as capabilities, is considered as Positioning.
The other three alternatives, such as:
Promotion -This references to that of a worker's advancement together in the hierarchical system. Targeting - A marketing approach that entails establishing unique personalities or audiences for certain types of information. Segmentation - To split the market into various sections.They aren't related to the given scenario. Thus the above answer i.e., "Option 1" is the correct solution.
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The U.S. Internal Revenue Service (IRS) has the authority to impose penalties on companies that significantly underpay taxes as a result of inappropriate transfer pricing. Acme Company transfers a product to a foreign affiliate at $15 per unit, and the IRS determines the correct price should have been $65 per unit. The adjustment results in an increase in U.S. tax liability of $1,250,000. Due to this change in price, what amount of penalty for underpayment of taxes will Acme Company pay?
Answer:
$500000
Explanation:
Please see attachment
Which of the following would tend to shift the supply of dollars in the market for foreign-currency exchange in the open-economy macroeconomic model to the right?
a. the expected rate of return on U.S. assets rises
b. the exchange rate falls
c. the expected rate of return on U.S. assets falls
d. the exchange rate rises
Answer:
The right answers are either b. or d., or both.
Explanation:
When the dollar loses value, there is higher demand for foreign imports in a country because they become cheaper. When the dollar gains in value, a foreign country´s exports increase. Changes in the value of currencies reflect changes in demand and supply. An increase in exports will shift the demand curve of the dollar higher. A reduction of imports will have a contrary effect.
When there is a shift in the supply of dollar for foreign currency exchange to the right, the exchange rate rises.
What is an Exchange rate?This is the rate in which a particular currency would exchange another currency. In most cases, these currencies are national currencies paired against another national currency.
When dollar loses value, there woukd be a high demand for import in a country because they tend to become cheaper. When the dollar gains, the foreign currency increases.
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Bruce is a salaried nonexempt employee who earns $42,500 annually, paid semimonthly, plus a 0.25% commission on all regional sales, paid monthly on the first pay date of the following month. During the month of May, the regional sales were $103,500. What was his gross pay for the first half of June?
(Do not round intermediate calculations. Round final answer to 2 decimal places.)A. $2,029.58B. $1,770.83C. $1,634.62D. $1,893.37
Answer:
A. $2,029.58
Explanation:
The computation of the gross pay for the first half of June is shown below:
= Regional sales × commission percentage + earning × number of months ÷ total number of months in a year
= $103,500 × 0.25% + $42,500 ÷ 12 months × 2 months
= $258.75 + $1,770.83
= $2,029.58
Since it is given that semi monthly, so we take 24 months.
Malrom Manufacturing Company acquired a patent on a manufacturing process on January 1, 2014 for $3,750,000. It was expected to have a 10 year life and no residual value. Malrom uses straight-line amortization for patents. On December 31, 2015, the expected future cash flows expected from the patent were expected to be $300,000 per year for the next eight years. The present value of these cash flows, discounted at Malrom’s market interest rate, is $1,800,000. At what amount should the patent be carried on the December 31, 2015 balance sheet? $3,750,000 $3,000 $2,400,000 $1,800,000
Answer:
$1,800,000
Explanation:
Please see attachment.
Joint Cost The Sun-Kissed Company manufactures two skin-care lotions, Soft Skin and Silken Skin, out of a joint process. The joint (common) costs incurred are $430,000 for a standard production run that generates 195,000 gallons of Soft Skin and 120,000 gallons of Silken Skin. Additional processing costs beyond the split-off point are $1.40 per gallon for Soft Skin and $0.90 per gallon for Silken Skin. Soft Skin sells for $2.40 per gallon while Silken Skin sells for $3.9 per gallon.
Answer:
Soft Skin unit cost: 2.50
Silken Skin unit cost: 2.19
Explanation:
We have to allocate the common cost incurred of 430,000 dollars to Soft Skin and Silken Skin
For that we can consider the revenue generate for each product:
Soft: 195,000 x 2.40 = 468,000
Silken: 120,000 x 3.9 = 468,000
As both product generate the same revenue we allocate 50/50
Soft allocated common cost:
430,000 x 50% = 215,000
Unit cost: 215,000 / 195,000 = 1.1025641
+ further processing cost: 1.40
total unit cost: 2.50
Silken allocated common cost:
430,000 x 50% = 215,000
Unit cost: 215,000 / 120,000 = 1.7916667
+ further processing cost: 0.40
total unit cost: 2. 19
The joint costs for The Sun-Kissed Company are allocated based on the net revenue of each product. The net revenue method distributes the $430,000 joint costs to Soft Skin and Silken Skin proportionally. This detailed calculation ensures fair cost distribution and reflects the revenue contribution of each product.
Joint Cost Calculation for The Sun-Kissed Company
The Sun-Kissed Company manufactures two skin-care lotions, Soft Skin and Silken Skin, through a joint process. The joint costs incurred are $430,000 for a production run, yielding 195,000 gallons of Soft Skin and 120,000 gallons of Silken Skin. To understand the overall cost allocation, we need to follow these steps:
Step-by-Step Calculation
Calculate Total Revenue: Revenue for Soft Skin = 195,000 gallons * $2.40 per gallon = $468,000 Revenue for Silken Skin = 120,000 gallons * $3.90 per gallon = $468,000 Total Revenue = $468,000 + $468,000 = $936,000Calculate Additional Processing Costs: Additional cost for Soft Skin = 195,000 gallons * $1.40 per gallon = $273,000 Additional cost for Silken Skin = 120,000 gallons * $0.90 per gallon = $108,000 Total Additional Processing Costs = $273,000 + $108,000 = $381,000Calculate Net Revenue: Net Revenue for Soft Skin = $468,000 - $273,000 = $195,000 Net Revenue for Silken Skin = $468,000 - $108,000 = $360,000 Total Net Revenue = $195,000 + $360,000 = $555,000Allocate Joint Costs: Joint Costs incurred = $430,000 Allocation based on Net Revenue (Soft Skin) = ($195,000 / $555,000) * $430,000 = $151,351.35 Allocation based on Net Revenue (Silken Skin) = ($360,000 / $555,000) * $430,000 = $278,648.65By following these steps, we have distributed the joint costs based on the net revenue generated by each product. This method ensures an equitable distribution of costs relative to the revenue each product creates.
The following information is from the annual financial statements of Raheem Company. Compute its accounts receivableturnover for 2016 and 2017. Compare the two years’ results and give a possible explanation for any change (competitorsaverage a turnover of 11).20 1 7 201 6 2015Netsales $405,140 $335,280 $388,000Accounts receivable, net (year-end) . . . . . . . . . . . . . 44,800 41,400 34,800
Answer:
9.32 times and 9.40 times
Explanation:
The computation of the account receivable ratio for both years are shown below:
For 2016
Accounts receivable turnover ratio
= Credit sales ÷ average accounts receivable
where,
Average accounts receivable = (Opening balance of Accounts receivable + ending balance of Accounts receivable) ÷ 2
= ($34,800 + $41,400) ÷ 2
= $38,100
And, the net credit sale is $335,280
Now put these values to the above formula
So, the answer would be equal to
= $355,280 ÷ $38,100
= 9.32 times
For 2017
Accounts receivable turnover ratio
= Credit sales ÷ average accounts receivable
where,
Average accounts receivable = (Opening balance of Accounts receivable + ending balance of Accounts receivable) ÷ 2
= ($41,400 + $44,800) ÷ 2
= $43,100
And, the net credit sale is $405,140
Now put these values to the above formula
So, the answer would be equal to
= $405,140 ÷ $43,100
= 9.40 times
The Flamingo Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding on its cash flow cycle. Last year, the company’s sales (all on credit) were $180,000 and it COGS were 85% of the sales. Inventory was turned around 8 times during the year and accounts receivable turnover was 10. Flamingo’s payables deferral period was 30 days. Calculate CCC. Compute the average balances in accounts receivables, accounts payable and inventory.
b. Interpret and analyze the CCC for this company. Why is CCC important?
Answer:
a. 52.125 days
b.CCC is important because it measure of company operational cash flow, it measures liquidity .Current 52.125 days is average ( actually it depends on industry)
Explanation:
Please see attachment .
Higher income taxes cause a ____________ shift of the labor supply curve, which then produces __________ Real GDP. a. leftward; more b. rightward; less c. rightward; more d. leftward; less
Answer:
Option (d) is correct.
Explanation:
If there is an increase in the income taxes then as a result there is a leftward shift in the labor supply curve and we know that labor supply curve indicates the the amount of labor hours workers devoted towards the production of the goods. Hence, this will lead to a reduction in the real GDP as there will be less working hours devoted by the workers because of the higher income taxes.
Marsden Company has three departments occupying the following amount of floor space: Department 1 15,000 sq. ft. Department 2 10,000 sq. ft. Department 3 25,000 sq. ft. How much store rent should be allocated to Department 3 if total rent is equal to $200,000?
The Marsden Company has three different departments which acquire different floor spaces. The premises is a rental premise and the rent have to be divided based on the area in square feet.
Given
Total rent is $200,000
Area of D1 is 15,000 sq. ft.
Area of D2 is 10,000 sq. ft.
Area of D3 is 25,000 sq. ft.
We have to find the rent of Department 3 which has the area of 25,000 sq.ft.
Calculations[tex]\rm Rent\: per\: square\: feet=\dfrac{Total\:rent}{Total\:area} \\\\Rent\: per\: square\: feet= \dfrac{\$200,000}{D1+D2+D3} \\\\Rent\: per\: square\: feet=\dfrac{\$200,000}{50,000 sq.fr.} \\\\Rent\: per\: square\: feet= \$4[/tex]
Area of D3 multiplied by Rent per square feet will give us the rent of D3.
Thus , [tex]25,000 x \$4 = \$100,000[/tex]
Therefore the rent of department 3 of Marsden Company is $100,000.
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Department 3 occupies 50% of the total floor space of Marsden Company. Thus, it should be allocated 50% of the total store rent, which is $100,000 out of the $200,000 total rent.
To determine how much store rent should be allocated to Department 3 when the total rent is $200,000, we use a method based on the proportion of floor space each department occupies. First, let's calculate the total amount of floor space in the company:
Department 1: 15,000 sq. ft.Department 2: 10,000 sq. ft.Department 3: 25,000 sq. ft.The total floor space is the sum of the space occupied by all departments, which equals 15,000 + 10,000 + 25,000 = 50,000 sq. ft.
Next, we calculate the percentage of the total floor space that Department 3 occupies:
Percentage of space for Department 3 = (Space occupied by Department 3 / Total space) * 100 = (25,000 / 50,000) * 100 = 50%
Now, we allocate the rent based on this percentage:
Allocated rent for Department 3 = Total rent ×Percentage of space for Department 3 = $200,000 × 50% = $100,000
Therefore, Department 3 should be allocated $100,000 out of the total $200,000 store rent.
An office manager is concerned with declining productivity. Despite the fact that she regularly monitors her clerical staff four times each day—at 9:00 AM, 11:00 AM, 1:00 PM, and again at 3:00 PM—office productivity has declined 30 percent since she assumed the helm one year ago. What would you recommend that the office manager do to improve office productivity in the future?
Answer:
Absolutely Not, recommend that the office manager invest more time monitoring the productivity of her clerical staff.
Explanation:
As clerical staff know the timings of monitoring. So, at that time they just show her that they are doing their work with dedication. But just after her monitoring, they known that she will not come before 2 hours. So, basically this is the actual problem in this case. Despite the four times monitoring each day, it does not result in higher productivity, instead productivity has declined 30 percent since she assumed the helm one year ago.
The best way to overcome this problem, office manager should not fix their time of monitoring. So that, clerical staff does not know the time when she come for monitoring. This will lead to improvement in the productivity level.
Machinery purchased for $67,200 by Coronado Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,480 at the end of that time. Depreciation has been entered for 5 years on this basis. 2021, it is determined that the total estimated life should be 10 years with a salvage value of $5,040 at the end of that time. Assume straight-line depreciation. Prepare the entry to record depreciation for 2021. (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. Use Machinery related account.)
Answer:
Entries need for recording depreciation given the change in estimation is:
Dr Depreciation expenses 4,592
Cr Accumulated depreciation 4,592
( to record depreciation expenses in the year of 2021, given depreciation estimate changes)
Explanation:
Relating to the change in depreciation estimate, the firm will not have to book any adjustment in previous depreciation expenses which is based on the old estimate, instead it will have to re-calculate depreciation expenses given the new estimate which are shown as below:
The net book value as at the beginning of 2021 is:
Purchase price - accumulate depreciation over 5 year
in which: purchase price = $67,200
accumulated depreciation over 5 year = depreciation expenses per yer x 5 = ( 67,200 - 4,480) /8 * 5 = $39,200
Thus, net book value at the beginning of 2021 is $28,000 which will be used to determine depreciation expense per year for the remaining 5 years of useful life, calculated as:
Depreciation per year: (28,000 - 5,040)/5 = $4,592.
Answer:
Dr Depreciation charge (Profit or loss) $4,592
Cr Accumulated depreciation (B/S) $4,592
Explanation:
The change in useful life of machinery is a change in accounting estimate and is treated prospectively. The depreciation charge with the useful life of eight years and $4,480 residual value was $7,840 per annum ($67,200-$4,480)/8.
After five years (end of 2020), the NBV of the machine is $28,000 with a residual value of $5,040. Thus the depreciation charge from 2021 onwards is $4,592 calculated as ($28,000-$5,040)/5.
Keesha Co. borrows $230,000 cash on December 1, 2017, by signing a 180-day, 10% note with a face value of $230,000.1. On what date does this note mature? (Assume that February has 28 days)A. May 25, 2018.B. May 26, 2018.C. May 27, 2018.D. May 28, 2018.E.May 30, 2018.
Answer:
option (E) May 30, 2018.
Explanation:
Data provided in the question:
Amount borrowed = $230,000
Date on which amount was borrowed = December 1, 2017
Maturity period = 180 days
Now,
Month number of days Days left
December (2017) 30 180 - 30 = 150
[note's issue date is omitted]
January (2018) 31 150 - 31 = 119
February (2018) 28 119 - 28 = 91
March (2018) 31 91 - 31 = 60
April (2018) 30 60 - 30 = 30
Hence,
The bonds will mature on 30 days after the month of April i.e on May 30, 2018
Hence,
The correct answer is option (E) May 30, 2018.
Andrew has decided to open an online store that sells home and garden products. After searching around, he chooses the software company Initech to provide the software for his website since their product required the least amount of specialized investments for him to use it. They agreed upon price of $6,000. To use Initech’s software, Andrew makes $1,800 in sunk capital investments and spends 45 hours learning how to use Initech’s software, which is very different from other software packages. Both Andrew and Initech view Andrew’s time as worth $30 per hour and Initech is fully aware of the investments Andrew must make to use their product. After Andrew’s investments were made, Initech came to Andrew and asked for more money. How much do you think they asked for?
Answer:$4650
Explanation:
The cost that is recoverable is $30 per hour that was agreed as the hour to be spent in learning the soft ware. The sunk cost it's an irrecoverable cost that does influence decision making. When the agreed leaning cost of $30 per hr for 45hr of $1350 is deducted from the asking price of $6000 we have the $4650
In this business scenario, Initech asked for an additional $4,200 from Andrew after their initial agreement.
In this scenario, **Initech** asked for an additional $4,200 from Andrew after their initial agreement of $6,000. This additional request was based on the investments Andrew made, including the sunk capital investments of $1,800 and his time spent learning the software, valued at $1,350 (45 hours x $30 per hour).
Knowledge Check 01 Identify the simplifying assumptions usually made in net present value analysis. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) All cash flows other than the initial investment occur at the end of periods. unchecked All cash flows generated by the investment project are immediately reinvested at a rate of return greater than the discount rate. unchecked All cash flows generated by the investment project are immediately reinvested at a rate of return equal to the discount rate. unchecked All cash flows occur at the beginning of the periods. unchecked The time value of money is ignored when evaluating investment proposals under the net present value analysis.
Answer:
All cash flows other than the initial investment occur at the end of periods.
All cash flows generated by the investment project are immediately reinvested at a rate of return equal to the discount rate.
Explanation:
Net present value method: In this method, the initial investment is subtracted from the discounted present value cash inflows. If the amount comes in positive than the project is beneficial for the company otherwise not.
In the net present value, the yearly cash flows other than the initial investment is occur at the end of the period as all the yearly cash flows are discounted at the present value factor.
And, the discount rate is equal to the rate of return
So, these two statements are correct.
In Net Present Value analysis, it is assumed that all cash flows occur at the end of periods, the cash flows are immediately reinvested at a rate equal to the discount rate, and the time value of money is considered.
Explanation:In a typical Net Present Value (NPV) analysis, certain simplifying assumptions are made. The first assumption is that all cash flows other than the initial investment occur at the end of periods. Secondly, it is assumed that all cash flows generated by the investment project are immediately reinvested at a rate of return equal to the discount rate. Lastly, the time value of money is considered and incorporated into the calculation, rather than being ignored. These assumptions are often applied to financial decision making such as stock and bond trading, or the evaluation of future benefits in comparison to present costs, with the goal of assessing the current value of a future stream of cash flows.
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If the actual price level increases beyond the long-run equilibrium price level, all of the following will tend to occur except A. an accumulation of unsold inventories. B. the price level falling. C. actual GDP exceeding total planned real expenditures. D. firms offering fewer services than people wish to purchase.
Answer:
The answer is letter D
Explanation:
All of the following tend to occur except firms offering fewer services than people wish to purchase.
Woody Corp. had taxable income of $7,825 in the current year. The amount of MACRS depreciation was $2,850, while the amount of depreciation reported in the income statement was $750. Assuming no other differences between tax and accounting income, Woody's pretax accounting income was:
Answer:
+65+95+95
Explanation:6468
Albert Company discovers in 2017 that its ending inventory at December 31, 2016, was $5,000 understated. What effect will this error have on:
Answer:
The error will make the net profit at 31 December, 2016 to be understated while a net loss at the same date will be overstated.
Explanation:
The issue is that a higher closing inventory lead to a higher profit while a lower closing inventory will lead to a lower profit.
During the fall of 2007, the United States economy began a descent into deep recession. As a result, the federal government and the Federal Reserve took action to stimulate economic growth. Which of the following would have been an appropriate fiscal policy? Choose one or more:
A. the federal government spending more money to build more infrastructure
B. the federal government increasing its regulation of banks
C. the federal government beginning to close failing banks
D. the federal government providing tax refunds to many taxpayers
E. the Federal Reserve increasing the money supply to reduce the interest rate
Answer:
A. the federal government spending more money to build more infrastructure and D. the federal government providing tax refunds to many taxpayers
Explanation:
Please see attachment.
Suppose that the economy is at equilibrium at $1,000 billion, and potential output is $1,200 billion. If the marginal propensity to consume (MPC) is 0.9, then government spending must increase by $_____ billion to reach potential output.
Answer:
20
Explanation:
The computation of the increase in the government spending is shown below:
= (Economy is at equilibrium point - potential output) ÷ (Multiplier)
= ($1,000 billion - $1,200 billion) ÷ (10)
= $200 billion ÷ 10
= $20 billion
The multiplier is computed below:
= (1) ÷ (1 - MPC)
= (1) ÷ (1 - 0.9)
= 1 ÷ 0.1
= 10
We simply first apply the multiplier formula, than calculate the government spending increment