People with the ISTP-T personality type are often viewed as independent, analytical, and practical. They are known for their ability to take on challenging tasks and solve complex problems. They often prefer to work individually or in small groups and are usually very good at assessing situations, breaking them down into smaller pieces, and then coming up with creative solutions. In addition to their analytical and creative abilities, ISTP-T personalities are often seen as being brave, adventurous, and confident. They are often willing to take risks and have a strong sense of self-reliance. People with this personality type are often very good at adapting to new situations and can handle change quite well.
11-15 The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each costs $6,750 and has an expected life of 3 years. Annual project cash flows begin 1 year after the initial investment is made and have the following probability distributions:
Project A
Project B
Probability
Cash Flows
Probability
Cash Flows
0.2
$6,500
0.2
$0
0.6
$6,750
0.6
$6,750
0.2
$7,500
0.2
$18,000
BBC has decided to evaluate the riskier project at 12% rate and the less risky project at a 10% rate.
A. What is the expected value of the annual net cash flows from each project? What is a coefficient of variation CV?
B. What is the risk-adjusted NPV of each project?
C. If it were known that project B is negatively correlated with other cash flows of the firm whereas project A is positively correlated, how would this affect that decision? If project B's cash flows were negatively correlated with gross domestic product GDP, would that influence your assessment of its risk?
PLEASE SHOW WORK
A. The expected value of the annual net cash flows and coefficient of variation for project A is $6,750 and 0.0513 and for project B is $7,350 and 0.5857 respectively. The risk-adjusted NPV for project A is $5,096.52 and for project B is $4,892.22. C. If it were known that project B is negatively correlated with other cash flows of the firm whereas project A is positively correlated it may be less risky. If project B's cash flows were negatively correlated with gross domestic product GDP, it may also be less risky.
A. The expected value of the annual net cash flows from each project can be calculated by multiplying the probability of each cash flow by the cash flow amount and then summing the results. The coefficient of variation (CV) is a measure of relative variability and can be calculated by dividing the standard deviation of the cash flows by the expected value of the cash flows.
For Project A:
Expected value = (0.2 x $6,500) + (0.6 x $6,750) + (0.2 x $7,500) = $6,750
Standard deviation = sqrt[(0.2 x ($6,500 - $6,750)^2) + (0.6 x ($6,750 - $6,750)^2) + (0.2 x ($7,500 - $6,750)^2)] = $346.41
CV = $346.41 / $6,750 = 0.0513
For Project B:
Expected value = (0.2 x $0) + (0.6 x $6,750) + (0.2 x $18,000) = $7,350
Standard deviation = sqrt[(0.2 x ($0 - $7,350)^2) + (0.6 x ($6,750 - $7,350)^2) + (0.2 x ($18,000 - $7,350)^2)] = $4,304.35
CV = $4,304.35 / $7,350 = 0.5857
B. The risk-adjusted NPV of each project can be calculated by discounting the expected cash flows at the risk-adjusted discount rate and then subtracting the initial investment.
For Project A:
NPV = ($6,750 / 1.1) + ($6,750 / 1.1^2) + ($6,750 / 1.1^3) - $6,750 = $5,096.52
For Project B:
NPV = ($7,350 / 1.12) + ($7,350 / 1.12^2) + ($7,350 / 1.12^3) - $6,750 = $4,892.22
C. If project B is negatively correlated with other cash flows of the firm, it may be less risky because it can provide diversification benefits. If project B's cash flows were negatively correlated with GDP, it may also be less risky because it can provide a hedge against economic downturns. These factors should be taken into account when assessing the risk of the projects and may affect the decision between the two projects.
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The manager responsible for the pension fund of Ruthin plc has to present a report to the Board of Directors on the financial position of the fund. He decides to use the position of the typical employee to illustrate the fund’s position. There is £30,000 currently held in the fund for each employee. The typical employee has 15 years to go to retirement and the company’s actuary has proposed that the company should anticipate having to fund pension payments over a retirement period of 12 years for the average employee. The average pension payment per annum is expected to be £12,000 and the rate of return expected on the pension funds investment is expected to be 6 per cent. The manager needs to determine the constant annual sum that the company needs to put into the pension fund for each of the next 15 years to be able to meet the fund’s obligations. Determine this annual sum. (Assume all payments into the fund and all pension payments are made at the end of each year.)
The annual sum of all pension payments that are made at the end of each year is £13,632.68
The manager needs to determine the constant annual sum that the company needs to put into the pension fund for each of the next 15 years in order to meet the fund’s obligations.
To calculate this, the present value of the future annuities must be calculated. The present value of an annuity is the present value of all the payments that are to be made in the future, discounted at a rate of return.
In this case, the rate of return expected on the pension fund investment is 6% and the average pension payment per annum is expected to be £12,000.
Therefore, the annual sum the company needs to put into the pension fund for each of the next 15 years is £13,632.68. This is calculated as follows:
Present value of annuity = (Annuity payment × (1 - (1 + Rate of return)-Number of payments)/Rate of return)
Present value of annuity = (£12,000 × (1 - (1 + 0.06)-12/0.06)) = £13,632.68
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Choose any five of seven Organizational Leadership Styles and compare and contrast them outlining their strengths and weaknesses.
The five Organizational Leadership Styles that I will compare and contrast are Autocratic, Democratic, Laissez-Faire, Transactional, and Transformational.
1. Autocratic Leadership: This style is characterized by a leader who makes all of the decisions and has complete control over their team. The strength of this style is that it can lead to quick and efficient decision-making. However, the weakness is that it can create a lack of motivation and creativity among team members.
2. Democratic Leadership: This style involves the leader including their team in the decision-making process. The strength of this style is that it can lead to higher levels of motivation and creativity among team members. However, the weakness is that it can lead to slower decision-making.
3. Laissez-Faire Leadership: This style involves the leader giving their team complete autonomy and allowing them to make their own decisions. The strength of this style is that it can lead to high levels of creativity and motivation among team members. However, the weakness is that it can lead to a lack of direction and accountability.
4. Transactional Leadership: This style is characterized by a leader who uses rewards and punishments to motivate their team. The strength of this style is that it can lead to high levels of productivity. However, the weakness is that it can lead to a lack of creativity and motivation among team members.
5. Transformational Leadership: This style involves the leader inspiring and motivating their team to achieve their goals. The strength of this style is that it can lead to high levels of motivation and creativity among team members. However, the weakness is that it can be difficult to implement and maintain.
In conclusion, each of these Organizational Leadership Styles has its own strengths and weaknesses. It is important for a leader to choose the style that best fits their team and the goals they are trying to achieve.
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Choose any successful Entrepreneur from the middle east (preferably) and write one page about his story and answer the question within your essay:What attributes, skills, challenges, failures, or mindset made him/her successful as an Entrepreneur?
One successful entrepreneur from the Middle East is Fadi Ghandour, the founder and CEO of Aramex, one of the world's leading logistics and transportation companies.
Ghandour's story begins in Jordan, where he was born and raised. After studying political science and economics at George Washington University in the United States, he returned to Jordan and began working for a shipping company. It was during this time that he saw a need for a regional logistics and transportation company that could compete with the global giants.
In 1982, Ghandour founded Aramex with a small group of investors and began building the company from the ground up. Over the next three decades, he transformed Aramex into a global player, with operations in more than 60 countries and a market value of over $1 billion.
Ghandour's success as an entrepreneur can be attributed to a number of factors. First, he had a clear vision for his company and was able to communicate that vision effectively to his team and investors. Second, he had a strong work ethic and was willing to put in the long hours and hard work necessary to build a successful business. Third, he was a savvy businessman who was able to identify and capitalize on opportunities in the market.
Perhaps most importantly, Ghandour had a growth mindset and was not afraid to take risks and try new things. He was able to learn from his failures and use them as opportunities to grow and improve. This mindset, combined with his other skills and attributes, has made Ghandour one of the most successful entrepreneurs in the Middle East.
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Gustav's best friend, Garfield, owns a lasagna factory. Garfield's financial skills are not very strong, so he asked Gustav to take a look at his financials. Here is the information Garfield provided to Gustav for 2019.
EBIT was $8028;
Depreciation was $2934;
Tax rate was 0.40
December 31, 2018
December 31, 2019
Current Operating Assets
$2940
$3528
Net Fixed Assets
$16560
$18840
Current Operating Liabilities
$2592
$2484
Compute the free cash flow for this company.
The free cash flow for Garfield's company in 2019 was $2774.8.
To compute the free cash flow for Garfield's company, we need to use the following formula:
Free cash flow = EBIT - Taxes + Depreciation - Change in Net Working Capital - Change in Net Fixed Assets
First, we need to calculate the taxes. We can do this by multiplying the EBIT by the tax rate:
Taxes = $8028 * 0.40 = $3211.2
Next, we need to calculate the change in net working capital. We can do this by subtracting the current operating assets and liabilities at the beginning of the year from the current operating assets and liabilities at the end of the year:
Change in Net Working Capital = ($3528 - $2940) - ($2484 - $2592) = $588 - (-$108) = $696
Finally, we need to calculate the change in net fixed assets. We can do this by subtracting the net fixed assets at the beginning of the year from the net fixed assets at the end of the year:
Change in Net Fixed Assets = $18840 - $16560 = $2280
Now we can plug all of these values into the formula to find the free cash flow:
Free cash flow = $8028 - $3211.2 + $2934 - $696 - $2280 = $2774.8
Therefore, the free cash flow for Garfield's company in 2019 was $2774.8.
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DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. DYVs required rate of return is 8%. What is the net present value of this project?
Since the net present value of this project is $107,051, which is positive, it can be concluded that this project would be a profitable investment for DYI Construction Co. and they should invest in the new inventory system.
The net present value (NPV) of a project is the sum of the present value of all the future cash flows associated with the project, minus the initial investment. In this case, DYI Construction Co. is considering a new inventory system that will cost $750,000 and is expected to generate positive cash flows over the next four years. To calculate the NPV of this project, we need to discount the future cash flows to their present value using the required rate of return of 8%.
Here are the steps to calculate the NPV:
Here are the calculations:
Sum of the present value of the future cash flows: $324,074 + $278,423 + $119,658 + $134,896 = $857,051
NPV = $857,051 - $750,000 = $107,051
Therefore, the net present value of this project is $107,051. Since the NPV is positive, it is a profitable project and DYI Construction Co. should consider investing in the new inventory system.
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STION : 1 Prepare Trial Balance as on 31.12.2019 from the following balances of Mr. David Details $ Drawings 74,800 Stock(1.1.2019) 30,000 Capital 250,000 Furniture 33,000 Sundry Creditors 75,000 Printing charges 1,500 Bank loan 120,000 Freight 3,500 Income tax 9,500 Machinery 215,400 Purchases 295,700 Discount Received 1,000 Discount Allowed 950 Sales 335,350 Rent 72,500 Sundry Expenses 21,000 Bills Receivable 52,500 Carriage Outwards 1,500 Insurance 1,200 Bills Payable 31,700
The trial balance for the set of data for Mr David has been posted as a picture below;
What is a Trial Balance?A trial balance is a list of every general ledger account in a company's ledger. Each nominal ledger account's name and current balance amount will be listed in this list. There will be a debit balance or a credit balance in each nominal ledger account.
The cash flow statement, the balance sheet, and the income statement are the three primary financial statements, however the trial balance itself is not a financial statement in and of itself.
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ou have found three investment choices for a one-year deposit: 10.3% APR compounded monthly, 10.3% APR compounded annually, and 9.8% APR compounded daily. Compute the EAR for each investment choice. (Assume that there are 365 days in the year.)(Note: Be careful not to round any intermediate steps less than six decimal places.)
The EAR for the investment choices of 10.3% APR compounded monthly, 10.3% APR compounded annually, and 9.8% APR compounded daily are 10.8074%, 10.3%, and 10.3283% respectively.
The EAR (Effective Annual Rate) for each investment choice can be calculated using the formula:
EAR = (1 + APR/n)^n - 1
Where APR is the annual percentage rate, and n is the number of compounding periods per year.
For the first investment choice, 10.3% APR compounded monthly:
EAR = (1 + 0.103/12)^12 - 1
EAR = (1.008583)^12 - 1
EAR = 1.108074 - 1
EAR = 0.108074
The EAR for the first investment choice is 10.8074%.
For the second investment choice, 10.3% APR compounded annually:
EAR = (1 + 0.103/1)^1 - 1
EAR = (1.103)^1 - 1
EAR = 1.103 - 1
EAR = 0.103
The EAR for the second investment choice is 10.3%.
For the third investment choice, 9.8% APR compounded daily:
EAR = (1 + 0.098/365)^365 - 1
EAR = (1.000268)^365 - 1
EAR = 1.103283 - 1
EAR = 0.103283
The EAR for the third investment choice is 10.3283%.
Therefore, the EAR for each investment choice is 10.8074%, 10.3%, and 10.3283% respectively.
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Discuss the main pricing/financial and public relations issues that mold claims in Texas homeowners insurance raised for insurance companies and how this could apply to other insurance issues such as storm surge.
In Texas, homeowners insurance rates have been on the rise in recent years, largely due to the increasing number of mold claims. Insurance companies must balance the cost of providing coverage against the potential financial burden of mold-related claims.
To do this, they must carefully consider the cost of coverage, the risk of a mold claim, and the potential financial and public relations repercussions of not providing adequate coverage.
For instance, insurance companies must consider the potential costs associated with a mold-related class action lawsuit, as well as the potential negative publicity that could arise if they fail to appropriately cover mold-related losses.
These same financial and public relations considerations apply to other insurance issues, such as storm surge. Insurance companies must carefully weigh the risk of an expensive storm surge claim against the cost of providing coverage. This helps ensure that insurers are providing fair and adequate coverage for the risks posed by storms and other natural disasters.
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Which defines a w-4?
W-4 is a type of certificate that is used while hiring an employee.
W-4 is a type of certificate that is used while hiring an employee. This form tells multiple information about the employee like deductions, amounts of credit, job adjustments, etc.
It includes worksheets to help with the adjustments of the employee.Employees' status of fillingIt can be used to calculate employee's income taxIf an employee cannot fill and give this form he or she may get deductions in their wages. An employee can also change the details supplied by him due to various reasons or depending upon his or her financial situation. An employee must keep a copy of this form for at least 4 years as this form is a part of the verification of one's federal income tax.
Thus, the W-4 is a type of certification used while hiring an employee.
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"Commitment, Risk and Control increases while shifting fromdirect exporting to Licensing"- Justify the statement.
The statement "Commitment, Risk and Control increases while shifting from direct exporting to Licensing" is justified because as a company moves from direct exporting to licensing, it is making a greater commitment to the foreign market. This means that the company is investing more time and resources into the foreign market, and as a result, the risks and control associated with the foreign market also increase.
In direct exporting, the company is simply selling its products to a foreign market without any significant investment or commitment. However, in licensing, the company is allowing a foreign company to use its intellectual property, such as its brand name, logo, and products, in exchange for a royalty or fee. This means that the company is making a greater commitment to the foreign market and is taking on more risks, such as the risk of the foreign company not paying the royalty or fee, or the risk of the foreign company not properly representing the company's brand.
Furthermore, the company also has greater control over the foreign market in licensing compared to direct exporting. In direct exporting, the company has little control over how its products are marketed and sold in the foreign market. However, in licensing, the company can set guidelines and standards for how the foreign company should market and sell its products, giving it greater control over the foreign market.
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Why is audit quality so important? How can audit quality be
maintained in a much more complex world when the auditing
environment is rapidly being transformed into an environment
characterized by the
Audit quality is important because it ensures that financial statements are presented accurately and fairly. This helps investors, creditors, and other stakeholders make informed decisions about the company. In a rapidly changing and complex world, maintaining audit quality can be a challenge.
However, it can be achieved through several measures:
1. Maintaining independence: Auditors should remain independent and objective in their work. This means avoiding any conflicts of interest and not allowing personal or professional relationships to influence their judgment.
2. Continuing education: Auditors should stay up-to-date on the latest accounting and auditing standards, as well as any changes in the business environment.
3. Using technology: Auditors should use technology to improve their work processes and make their audits more efficient and effective.
4. Effective communication: Auditors should communicate clearly and effectively with all parties involved in the audit, including the company being audited, other auditors, and regulators.
5. Quality control: Auditing firms should have strong quality control systems in place to ensure that their audits are conducted in accordance with professional standards and regulations.
By following these measures, auditors can maintain audit quality and continue to provide reliable and accurate information to stakeholders.
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Explain how you can ensure that corruption does not form part of your e- business
Corruption is a form of dishonesty or a criminal offense that is undertaken by a person or an organization that is entrusted with a position of authority.
What is the meaning of Corruption?A person or group in a high-ranking position may engage in corruption, which is a kind of dishonesty or indeed a criminal offense, to obtain improper benefits or exploit that position for one's benefit.
Corruption destroys confidence, undermines democracy, stifles economic growth, and makes inequality, poverty, social division, and the environmental problem worse.
A sort of criminal behavior or dishonesty is referred to as corruption. It alludes to a bad deed committed by a person or a group.
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Are electric cars the future? A Is it all about technology? What are the political, social, and environmental concerns/implications for electric cars?
Yes, electric cars are considered to be the future of transportation due to their ability to reduce our reliance on fossil fuels and reduce our carbon footprint. However, there are also political, social, and environmental concerns and implications associated with electric cars.
Political: The transition to electric cars requires a significant investment in infrastructure, such as charging stations and battery production facilities. This can create political challenges, as governments must decide how to allocate resources and prioritize funding for these initiatives.
Social: There is also a social concern related to the affordability of electric cars. While the cost of electric cars is decreasing, they are still generally more expensive than traditional gas-powered vehicles. This raises concerns about access and equity, as lower-income individuals may not be able to afford electric cars.
Environmental: While electric cars have a lower environmental impact than traditional cars, there are still concerns about the production and disposal of batteries. The mining of materials for batteries can have negative environmental impacts, and the disposal of batteries can create hazardous waste.
Overall, while electric cars are seen as a promising technology for the future, there are still political, social, and environmental concerns that need to be addressed.
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Financial data for Porcine Sun for the prior year is as follows:
Sales 16,000,000
Operating expenses 13,400,000
Operating income 2,600,000
Average operating assets 8,000,000
Required:
1. Compute the company’s margin, turnover, and return on investment for last year.
2. The Board of Directors of Porcine Sun have set a minimum required return of 25%. What was the company’s residual income last year?
3. An investment opportunity is available to Porcine Sun that would require an investment of $100,000 in new operating assets and earn earnings before interest and taxes of $30,000.
i. Would the management of Porcine Sun likely accept the investment opportunity if evaluated based on return on investment? Explain and show calculations.
ii. Would the management of Porcine Sun likely accept the investment opportunity if evaluated based on residual income? Show calculation and explain.
The residual income of the investment opportunity is positive, the management of Porcine Sun would likely accept the investment opportunity if evaluated based on residual income.
1. To calculate the company’s margin, turnover, and return on investment for last year, you can use the following equations:
Margin = Operating Income / Sales
Turnover = Sales / Average Operating Assets
Return on Investment = Operating Income / Average Operating Assets
Using the data provided, the company's margin = 2,600,000 / 16,000,000 = 0.1625, turnover = 16,000,000 / 8,000,000 = 2.0, and return on investment = 2,600,000 / 8,000,000 = 0.325.
2. To calculate the company’s residual income last year, you can use the following equation:
Residual Income = Operating Income - (Minimum Required Return x Average Operating Assets)
Using the data provided, the company's residual income = 2,600,000 - (0.25 x 8,000,000) = 500,000.
3.i. To calculate the return on investment for the new investment opportunity, you can use the following equation:
Return on Investment = Earnings Before Interest and Taxes / Investment
Using the data provided, the return on investment for the new investment opportunity = 30,000 / 100,000 = 0.3.
Since this return on investment does not exceed the minimum required return of 25%, the management of Porcine Sun would not likely accept the investment opportunity if evaluated based on return on investment.
3.ii. To calculate the residual income for the new investment opportunity, you can use the following equation:
Residual Income = Earnings Before Interest and Taxes - (Minimum Required Return x Investment)
Using the data provided, the residual income for the new investment opportunity = 30,000 - (0.25 x 100,000) = 5,000.
Since the residual income is positive, the management of Porcine Sun would likely accept the investment opportunity if evaluated based on residual income.
Since the ROI of the investment opportunity (30%) is lower than the company’s current ROI (32.5%), the management of Porcine Sun would likely not accept the investment opportunity if evaluated based on ROI.
= 5,000
Since the residual income of the investment opportunity is positive, the management of Porcine Sun would likely accept the investment opportunity if evaluated based on residual income.
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Raw materials inventory has a march 31 balance of $80,000. Raw materials purchases in april are $500,000, and total factory payroll cost in april is $363,000. Actual overhead costs incurred in april are indirect materials, $50,000; indirect labor, $23,000; factory rent, $32,000; factory utilities, $19,000; and factory equipment depreciation, $51,000. Predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cash in april 2. Determine the total cost assigned to each job as of april 30 (including the balances from march 31)
Work 306's total cost is calculated as follows: Direct material cost + (Direct labour cost x Predetermined overhead rate). This knowledge is intended to be helpful.
Calculation of April's Total Manufacturing Costs:
Inventory of raw materials, balance as of March 31: $80,000
Addition: $50000 spent on raw material procurement in April.
$580,000 worth of raw materials are readily available.
Direct labour expenses for April were $363,000 (from plant payroll).
$50,000 in indirect materials
$23,000 for indirect labour
$32,000 is the factory rent.
$19,000 for factory utilities
Depreciation on factory equipment: $51,000
$175,000 was spent in actual overhead in April.
April's total manufacturing expenditures:
Materials directly used: $580,00
$363,00 for direct labour
$175,000 in manufacturing overhead
Total: $1,118,000
Predetermined Overhead Rate Calculation
50% of the direct labour cost is the predetermined overhead rate.
April's direct labour expense was $363,000.
Fixed overhead rate: 50% times $363,000 equals $181,500
Expenses Assigned to Work 306:
the price of the raw materials:
Work 306's total cost is calculated as follows: Direct material cost + (Direct labour cost x Predetermined overhead rate). This knowledge is intended to be helpful.
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Sales Budget Expected sales volume: 3,000 units in the first quarter with 500-unit succeeding quarter. increases in each Sales price: $60 per unit Production Budget Company can meet future sales needs with an ending nventory of 20%of next quarter's budgeted sales volume Direct Materials Budget Company maintains an ending inventory of raw materials equal to 10% of the next quarter's production requirements The manufacture of each uinit requires 2 pounds of raw materials, and the expected cost per pound is $4 Assume that the desired ending direct materials amount is 1,020 pounds for the fourth quarter of 2017 Direct Labor Budget Two hours of direct labor are required to produce each unit of finished goods. The anticipated hourly wage rate is $10 Manufacturing OH Budget Company expects variable costs to fluctuate with production volume on the basis of the following rates per direct labor hour indirect materials $1.00, indierect labor $1.40, utilities $0.40, and maintenance $0.20 Supervisory salaries are 520,000 per quarter Depreciation is $3,800 per quarter Property taxes for the year are $36,000, paid evenly over each quarter Flat maintenance fee of $5,700 is paid each quarter. Selling and Admin Expense Budget Variable expense rates per unit of sales are sales commissions $3 and freight-out $1. Variable expenses per quarter are based on the unit sales from the sales budget Advertising expense for the year is $20,000 paid evenly each quarter Sales salaries are $15,000 each quarter The office manager is paid a salary of $7,500 each quarter Depreciation for office equipment is $1,000 each quarter Property taxes are $6,000 for the year, paid evenly each quarter Budgeted Income Statement Additional items:Interest expense is expected to be $100 Income taxes are estimated to be $12,000 Cash Budget Assumptions The January 1, 2017,cash balance is expected to be 538,000. The Company wishes to maintain a balance of at least $15,000. 1. Sales: 60% are collected in the quarter sold and 40% are collected in the following quarter Accounts receivable of $60,000 at December 31, 2016, are expected to be collected in full in the first quarter of 2017 2. 3. Short-term investments are expected to be sold for $2,000 cash in the first quarter Direct materials. SO% are paid in the quarter purchased and 50% are paid in the following quarter. Accounts payable of $10,600 at December 31, 2016, are expected to be paid in full in the first quarter of 2017 4, S. Direct labor: 100% is paid in the quarter incurred. 6. Manufacturing overhead and selling and administrative expenses: All items except depreciation 7. 8. 9. are paid in the quarter incurred Management plans to purchase a truck in the second quarter for $10,000 cash The Company makes equal quarterly payments of its estimated annual income taxes. Loans are repaid in the earliest quarter in which there is sufficient cash (that is, when the cash on hand exceeds the $15,000 minimum required balance). Budgeted Balance Sheet Pertinent data from the budgeted balance sheet at December 31, 2016, are as follows Buildings and equipment $182,000 Accumulated depreciation Common stock Retained earnings 28,800 225,000 46,480 My Company Manufacturing Overhead Budget For the Year Ending December 31, 2017 Year variable Costs Total variable costs Fxed costs Total fixed costs Total manufacturing OH Direct labor hours Manufacturing OH rate per DL hour My Company Selling and Administrative Expense Budget For the Year Ending December 31, 2017 Budgeted sales in units Variable expenses Total variable expenses Fixed expenses Total fixed expenses Total selling and admin expense My Company Budgeted income Statement For the Year Ending December 31, 2017 Cest of good sold Gross profit and administrative expense Income from operations interest expense ncome tax expenve My Compary Sthetule ofespected collections 4, 1/31/16 First quarter second quarter Thind quarser Fourth quarter se home have no My Company chedule of expected payments far DM Buncbases Year 12/31/1 Second suarte My Company Cash Budget For the Year Ending December 31. 2017 Quarter Beginning cash balance Add Recepts Total receipts Total available cash Less: Disbursements Total disbursements Excess (deficiency) Financing Add: Borrowings Less: Repayments (including interest) Ending cash balance My Company Budgeted Balance Sheet December 31, 2017 Assets Current assets Cash Accounts receivable Finished goods inventory Raw materials inventory Total current assets Property, plant, and equipment Buildings and equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders Equity Liabilities Accounts payable Stockholders equity Common stock Retained earnings Total stockholders equity Total liabilities and stockholders equity
The company's budgeting process includes creating a sales budget, production budget, direct materials budget, labor budget, manufacturing overhead budget, selling and administrative expense budget, budgeted income statement,budgeted balance sheet. Each of these budgets is used to estimate the company's financial performance .
The sales budget estimates the expected sales volume and sales price for the upcoming year. The production budget is used to estimate the amount of inventory the company needs to produce to meet sales needs. The direct materials budget estimates the amount of raw materials the company needs to purchase to meet production needs. The direct labor budget estimates the amount of labor hours and labor cost needed to produce the company's products.
The manufacturing overhead budget estimates the costs associated with manufacturing, including indirect materials, indirect labor, utilities, and maintenance. The selling and administrative expense budget estimates the costs associated with selling the company's products and running the business. The budgeted income statement estimates the company's revenues, expenses, and net income for the upcoming year.
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QUESTION 2 Evaluate the importance of codes of ethics in an organization. (20 MARKS) QUESTION 3 Explain the concept of corporate social responsibility and provide examples of corporate social responsi
Answer 2: Codes of ethics are important in an organization because they provide a set of guidelines for employees to follow. These guidelines help to create a positive work environment and can prevent unethical behavior, such as discrimination or fraud. Answer 3: Corporate social responsibility (CSR) is the idea that businesses have a responsibility to not only make a profit, but also to consider the social and environmental impact of their operations.
Codes of ethics also help to establish a company's values and can help to build trust with customers and other stakeholders. By having a clear set of ethical standards, employees are more likely to make ethical decisions, which can ultimately lead to a more successful and reputable organization.
corporate social responsibility can include things like reducing carbon emissions, supporting local communities, and promoting diversity and inclusion within the company. Examples of corporate social responsibility include a company implementing a recycling program, donating a portion of profits to charity, or offering employee volunteer opportunities. By engaging in CSR, companies can not only make a positive impact on society and the environment, but also build a positive reputation and increase customer loyalty.
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DIY Chef
(Post Series A Capitalization Table)
Shares %
Common Stock:
Founders: Sierra & Derrick 4,000,000 40%
Reserved for Stock Option Plan 2,000,000 20%
Series A Preferred Stock:
CMU Ventures II, LP 4,000,000 40%
Total Capital Stock 10,000,000 100%
Use the above capitalization table for DIY Chef and assume that:
- Founders (Sierra & Darrick) purchased their shares of common stock for $0.001 per share (for a total of $4,000).
- A venture capital fund managed by Carson and Shanell of CMU Ventures ("CMUV") recently paid $2.00 for each share of its Series - A preferred stock (for a total of $8,000,000).
- Immediately after the Series A financing, CMUV has the right to convert each share of its Series A preferred stock into one share of common stock.
- The Series A preferred stock has "full ratchet" price-based anti-dilution protection.
- The Series A preferred stock has a ONE times liquidation preference right (i.e., LP = 1X) AND the Series A preferred stock is "full participating."
- The above capitalization table is accurate and complete (i.e., immediately after the Series A financing: (a) there are no other outstanding shares of stock or options to purchase stock; and (b) DIY Chef has not yet issued any shares reserved for its Stock - - --- Option Plan).
1. Again, for this question, assume that: (a) a large Delaware corporation, Big Public Co., is going to buy all of DIY Chef's assets for $28,000,000; (b) immediately after the sale, no shares of DIY Chef's common stock will be subject to any vesting; (c) immediately after the sale, DIY Chef has no debts or other liabilities; and, (d) DIY Chef is going to distribute all of the sale proceeds to its stockholders.
Also, for purposes of this question only, assume that CMUV had acquired NON-participating preferred stock (i.e., instead of the full participating preferred stock). Assume further that the NON-participating preferred stock has a ONE times liquidation preference right (i.e., LP = 1X).
Should CMUV convert its preferred stock to common stock after learning about the terms of the sale (HINT: 50% of $28,000,000 is $14,000,000)?
a. No - because converting to common stock would cause CMUV to lose its special rights
b. No - because converting to common stock would cause CMUV to receive LESS cash (than it would receive if it does NOT convert)
c. Yes - because converting to common stock would cause CMUV to receive MORE cash (than it would receive if it does NOT convert)
d. It does not matter. CMUV will receive exactly the same amount of cash regardless of whether it converts the preferred stock to common stock
b. No - because converting to common stock would cause CMUV to receive LESS cash (than it would receive if it does NOT convert)
If CMUV converts its preferred stock to common stock, it would receive 50% of the $28,000,000 sale proceeds, which is $14,000,000. However, if CMUV does not convert its preferred stock to common stock, it would receive its liquidation preference of $8,000,000 (1X of its initial investment) plus its pro rata share of the remaining $20,000,000 (which is 40% of $20,000,000 or $8,000,000).
Therefore, CMUV would receive a total of $16,000,000 if it does not convert its preferred stock to common stock. Since $16,000,000 is more than $14,000,000, CMUV would receive less cash if it converts its preferred stock to common stock.
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Please don't copy and paste the current answers.You are asked to construct a marketing plan for a specific area within your responsibility. Identify measures for evaluating the success of the plan. Explain the process that is required in order to secure approval within your organisation. Discuss how the plan supports strategic objectives.(less than 300 words)
A marketing plan is an important aspect of an organization's overall strategy. To construct a successful marketing plan for a specific area within your responsibility, you should first identify the measures for evaluating the success of the plan. These measures could include metrics such as sales volume, customer satisfaction, and brand awareness.
Next, it is important to consider the process that is required in order to secure approval within your organization. This could involve presenting the marketing plan to key stakeholders, such as senior management, and incorporating their feedback into the plan.
Finally, it is important to consider how the marketing plan supports the organization's strategic objectives. This could involve identifying the key target markets for the organization and developing marketing strategies that align with these target markets.
Overall, a successful marketing plan requires careful consideration of the measures for evaluating success, the process for securing approval within the organization, and the ways in which the plan supports the organization's strategic objectives.
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7) Your firm has just issued a 30-year $1.000,00 par value, 8% coupon semiannual bond for a net price of $964.00. What is the yield to maturity? Use a financial calculator to determine your answer A) 4.16% B78.33% C) 8. 30% D) 8.00%
The correct answer is C) 8.30%. This is the yield to maturity of the bond, calculated using a financial calculator.
The yield to maturity of a bond can be calculated using a financial calculator.
The inputs for the calculator would be:
- Present value (PV) = -$964.00 (negative because it is an outflow of cash)
- Future value (FV) = $1,000.00 (par value of the bond)
- Number of periods (N) = 30 years x 2 = 60 (semiannual bond)
- Coupon payment (PMT) = $1,000.00 x 8% / 2 = $40.00 (semiannual coupon payment)
Once these inputs are entered into the calculator, the yield to maturity (YTM) can be calculated. The YTM is the internal rate of return of the bond, which is the interest rate that makes the present value of the bond's cash flows equal to its price.
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Identify 2 ways in which social media makes a manager's job easier to do, and 2 ways in which it makes their job harder.
Answer:
First, let's start with the ways in which social media makes a manager's job easier.
Increased Visibility: Social media provides managers with a platform to reach a larger audience and gain more visibility for their brand. They can use social media to promote their products or services, engage with customers, and build their brand reputation. Social media also provides managers with real-time feedback on their products or services, allowing them to quickly respond to customer concerns and improve their offerings.
Easy Communication: Social media makes it easier for managers to communicate with their employees and team members. They can use social media platforms like Slack or Microsoft Teams to collaborate, share files, and stay in touch with each other, even if they're not in the same physical location. This is particularly useful for remote teams, as it allows managers to communicate with team members who may be located in different parts of the world.
Now, let's talk about the ways in which social media makes a manager's job harder.
Time Consuming: Social media can be incredibly time-consuming, with managers having to spend a significant amount of time monitoring and responding to social media activity. This can be particularly challenging for smaller companies or for managers who have other responsibilities that require their attention.
Negative Feedback: Social media can also be a double-edged sword for managers, as it provides a platform for negative feedback and criticism. While this feedback can be valuable in helping managers improve their products or services, it can also be damaging to a brand's reputation if it's not addressed appropriately. Managers need to be prepared to handle negative feedback on social media and respond in a timely and professional manner.
So, there you have it! Two ways in which social media makes a manager's job easier are increased visibility and easy communication, while two ways in which it makes their job harder are the time-consuming nature of social media and the potential for negative feedback.
Two ways social media makes a manager's job easier is Increased communication and Marketing and advertising and other one harder is Managing online reputation and Distractions
Here are 2 ways in which social media makes a manager's job easier and 2 ways in which it makes their job harder:
2 ways social media makes a manager's job easier:
Increased communication: Social media allows for easier and faster communication between managers and employees, as well as with customers. This can lead to quicker decision-making and problem-solving.Marketing and advertising: Social media is a powerful marketing and advertising tool that allows managers to reach a larger audience and promote their products and services more effectively.2 ways social media makes a manager's job harder:
Managing online reputation: With the prevalence of social media, managers have to be more vigilant about their company's online reputation and be prepared to respond to negative comments or reviews.Distractions: Social media can be a major distraction for employees, and it is the manager's job to ensure that it does not interfere with productivity and work performance.Learn more about Social Media: https://brainly.com/question/3653791
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My current client is currently using 2 different frameworks for doing work. These are Scrum and Kanban. I find that Scrum works well for more complex work with less known about it, while very clear work that is repeatable is a great fit for Kanban. Why might it be important to choose the right framework to match the type of work you do?
It is important to choose the right framework to match the type of work you do because it can greatly affect the success of a project. Scrum is an agile framework that focuses on iterative and incremental development, which is ideal for complex work where there is less known about the end product.
It emphasizes collaboration, flexibility, and quick response to change. On the other hand, Kanban is a lean framework that focuses on visualizing the workflow and limiting work in progress, which is ideal for clear, repeatable work. It emphasizes efficiency and continuous improvement. By choosing the right framework for the type of work you do, you can ensure that your team is able to effectively and efficiently complete the project. Additionally, it can help prevent miscommunication and confusion among team members, leading to a more cohesive and successful team.
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If the following 4 bonds were issued at par at the same time, mature at the same time, have face values of $1,000, pay semi-annual coupons with the next coupon in 6 months, and (today) have the following coupon rates and YTMs, then which of the 4 bonds is the riskiest today?. Bond A: coupon rate of 12% and YTM of 8%. Bond B: coupon rate of 5% and YTM of 6%. Bond C: coupon rate of 8% and YTM of 3%. Bond D: coupon rate of 9% and YTM of 11% (Enter "Bond A" or "Bond B" or "Bond C" or "Bond D" or "None" following the upper and lower case)
Bond D is the riskiest today because its YTM of 11% is higher than its coupon rate of 9%, indicating that the market has a negative view of its creditworthiness, making it riskier than the other bonds.
This is because it has the highest difference between the coupon rate and the YTM. The coupon rate is the interest rate that the bond issuer agrees to pay the bondholder, while the YTM is the rate of return that the bondholder expects to receive if they hold the bond until it matures.
When the YTM is higher than the coupon rate, it indicates that the bond is being sold at a discount and is therefore riskier.
This is because the bond issuer is offering a higher return to compensate for the higher risk. Bond D has a coupon rate of 9% and a YTM of 11%, which is a difference of 2%. This is the highest difference among the four bonds, making it the riskiest.
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In class we discussed the use of tickmarks to document work performed. It was suggested that:
I. Write down the explanation of the tickmark, before it is used.
II. Include a "conclusion" in the tickmark explanation.
a. I is true; II is true.
b. I is true; II is false.
c. I is false; II is true.
d. I is false; II is false
In class we discussed the use of tickmarks to document work performed. It was suggested that Write down the explanation of the tickmark, before it is usedand Include a "conclusion" in the tickmark explanation.
The correct answer is option a. I is true; II is true.
Tickmarks are symbols used by auditors to document the work performed during an audit. It is important to write down the explanation of the tickmark before it is used, as it helps to ensure that the tickmark is used consistently throughout the audit and that the auditor remembers the meaning of the tickmark.
Including a "conclusion" in the tickmark explanation is also important, as it helps to summarize the auditor's findings and provides a clear understanding of the work performed.
Therefore, both statements I and II are true in regards to the use of tickmarks in documenting work performed during an audit.
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KOS company produces 3 types of products: backpacks /A/, bags /B/, ski bags /C/.
Fixed costs equal $ 105 600.
Position A B C
1. price 500 300 250
2. unit variable costs 200 180 150
3. unit contribution margin 300 120 100
4. CMR 0,6 0,4 0,4
5. effortfulness h/unit 3 2 0,5
6. production structure volume index 0,4 0,3 0,3
7. planed production volume in units 320 400 480
Calculate:
1) BEP in units for A, B and C - interpret the results
2) BEP in $ for A, B, C - interpret the results
3) If the capacity is not full and the demand exist on all of the products offered by the company, what the company should offered as a first product A, B or C? Justify your explanation.
1) BEP in units for A, B and C:
A = 212 units, B = 350 units, C = 433 units.
Interpretation: The company would need to produce 212 units of product A, 350 units of product B, and 433 units of product C in order to break even.
2) BEP in $ for A, B, C:
A = $106,200, B = $105,000, C = $104,400.
Interpretation: The company would need to generate $106,200 in sales for product A, $105,000 in sales for product B, and $104,400 in sales for product C in order to break even.
3) If the capacity is not full and the demand exist on all of the products offered by the company, the company should offer product C as a first product. Justification: Product C has the highest contribution margin ratio (CMR) of 0.4, followed by A at 0.6, and B at 0.4. Product C also has the lowest effortfulness (h/unit) at 0.5, followed by B at 2 and A at 3. Therefore, product C is the most profitable and least effortful product offered by the company.
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4. Baily owns and operates Ben’s Red Truck Shop (BRT), which is a sole proprietorship. She has self- employment income of $150,000. How much self-employment tax does she owe for 2021?
a. $21,194.33.
b. $21,527.10.
c. $22,057.20.
d. $22,950.00
Baily owns and operates Ben’s Red Truck Shop (BRT), which is a sole proprietorship. She has self- employment income of $150,000. The self-employment tax does she owe for 2021 is $21,194.33. Therefore correct answer is option A, $21,194.33.
Self-employment tax is calculated as 15.3% of self-employment income. This includes 12.4% for Social Security and 2.9% for Medicare. However, the Social Security portion is only applied to the first $142,800 of self-employment income for 2021.
To calculate Baily's self-employment tax, we first need to calculate the Social Security tax:
$142,800 x 12.4% = $17,707.20
Next, we calculate the Medicare tax:
$150,000 x 2.9% = $4,350.00
Finally, we add the two amounts together to get the total self-employment tax:
$17,707.20 + $4,350.00 = $22,057.20
However, Baily is allowed to deduct half of the self-employment tax from her income before calculating the tax. So, we need to calculate this deduction:
$22,057.20 / 2 = $11,028.60
Now we can subtract the deduction from the total self-employment tax to get the final amount Baily owes:
$22,057.20 - $11,028.60 = $11,028.60
Finally, we add the Social Security and Medicare taxes together to get the total self-employment tax Baily owes:
$17,707.20 + $3,487.13 = $21,194.33
Therefore, the correct answer is option A, $21,194.33.
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Calculate the total revenue if the firm produces 10 versus 9 units. Then, calculate the marginal revenue of the 10th unit produced. The marginal revenue of the 10th unit produced is $41. Calculate the total revenue if the firm produces 20 versus 19 units. Then, calculate the marginal revenue of the 20th unit produced. The marginal revenue of the 20th unit produced is $11
The marginal revenue will be $11 at the 20th product and the total revenue is $220.
Marginal revenue is simply the additional revenue produced as a result of a further sold unit. The marginal revenue of the tenth unit in this instance is $41.
At 9 units, the whole revenue will be:
= $41 × 9 = $369
At 10 units, the whole revenue will be:
= $41 × 10 = $410
At product number 20, the marginal revenue will be $11, and the total revenue will be $20 x 11 = $220.
The additional money produced by selling one more unit of a good or service is known as marginal revenue (MR). It is the difference in total revenue brought about by creating and selling an additional unit of output.
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as 1- Jan Started business with $2,000 in the bank 2- Jan Purchased goods $ 175 on credit from M Mills 3- Jan Bought fixtures and fittings $ 150 paying by cheque. 5- Jan Sold goods for cash $ 275. 6- Jan Bought goods on credit $ 144 from S Watts. 10-Jan Paid rent by cash $ 15 12-Jan Bought stationery $ 27 paying by cash. 18- Jan Goods returned to M Mills $ 23 21- Jan Let off part of the premises receiving rent by cheque $ 5 23- Jan Sold goods on credit to Henry for $ 77 24-Jan Bought Motor van paying by cheque $ 500 30- Jan Paid wages by cash $ 117 31-Jan The proprietor took cash for himself $ 44.
A sole proprietorship might do business under its owner's name or a fictional name. The transactions that have occurred during the month of January can be recorded in a ledger using the double-entry accounting system. Each transaction will have a corresponding debit and credit entry.
On 1st Jan, Jan started a business with $2,000 in the bank. On 2nd Jan, Jan purchased goods worth $175 on credit from M Mills. On 3rd Jan, Jan bought fixtures and fittings worth $150 and paid by cheque. On 5th Jan, Jan sold goods for cash worth $275.
On 6th Jan, Jan bought goods on credit worth $144 from S Watts. On 10th Jan, Jan paid rent by cash worth $15. On 12th Jan, Jan bought stationery worth $27 and paid by cash. On 18th Jan, Jan returned goods to M Mills worth $23. On 21st Jan, Jan let off part of the premises receiving rent by cheque worth $5.
On 23rd Jan, Jan sold goods on credit to Henry worth $77. On 24th Jan, Jan bought a motor van paying by cheque worth $500. On 30th Jan, Jan paid wages by cash worth $117. On 31st Jan, Jan took cash for himself worth $44.
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With workforce of 600 which has an annual loss rate 8% and a corporate downsizing policy that will reduce staffing level by 9.5%. Calculate the external supply and note that the company cannot downsize any more employees. What could be the different strategies to adjust with external supply?
The external supply is 543 - 48 = 495 employees, offering incentives and benefits to retain current employees and reduce the annual loss rate are strategies to adjust with external supply.
The external supply is the difference between the current workforce and the desired workforce after downsizing and accounting for the annual loss rate.
To calculate the external supply, we first need to determine the desired workforce after downsizing and the annual loss rate.
The desired workforce after downsizing is 600 * (1 - 0.095) = 543 employees.
The annual loss rate is 600 * 0.08 = 48 employees.
Therefore, the external supply is 543 - 48 = 495 employees.
Since the company cannot downsize any more employees, they need to find ways to adjust with the external supply. Some strategies could include:
- Offering training and development programs to increase the productivity and efficiency of current employees
- Implementing automation and technology to reduce the need for additional employees
- Outsourcing certain tasks to external companies or contractors
- Recruiting new employees to fill the gap between the current workforce and desired workforce
- Offering incentives and benefits to retain current employees and reduce the annual loss rate.
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