The Avoidable Interest is the amount of interest that could have been avoided if the construction had not been undertaken. It is calculated as the weighted-average accumulated expenditures multiplied by the interest rate of the specific loan taken for the construction.
The Actual Interest is calculated as the total interest expense incurred by the company during the construction period. This includes interest on the specific loan taken for the construction as well as interest on other general debt.
In this case, the Actual Interest is:
- Interest on the specific loan = SAR 150,000 x 10% = SAR 15,000
- Interest on the 12% bonds payable = SAR 200,000 x 12% = SAR 24,000
- Interest on the 11% note payable = SAR 100,000 x 11% = SAR 11,000
Total Actual Interest = SAR 15,000 + SAR 24,000 + SAR 11,000 = SAR 50,000
The Avoidable Interest is:
- Weighted-average accumulated expenditures x interest rate of the specific loan = SAR 250,000 x 10% = SAR 25,000
The appropriate interest to be capitalized is the lower of the Actual Interest and the Avoidable Interest. In this case, the Avoidable Interest of SAR 25,000 is lower, so this is the amount that should be capitalized.
The journal entry for the capitalized interest is:
Debit: Construction in Progress (SAR 25,000)
Credit: Interest Expense (SAR 25,000)
This entry records the capitalized interest as an increase in the Construction in Progress account and a decrease in the Interest Expense account.
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What is a good approach to "Sell me this pen!"?What is a good conversation flow? Why?Write the structure and the questions
An effective approach to "Sell me this pen!" would involve understanding the customer's needs and motivations. Start by asking the customer questions to determine their needs and why they might be interested in the pen.
Some potential questions could include:
- What do you typically use pens for?
- What features are you looking for in a pen?
- What budget do you have in mind for a pen?
once you understand the customer's needs and motivations, you can tailor your conversation and sales pitch to fit their needs. Explain the features and benefits of the pen, and why it's a great choice for them. Make sure to emphasize the benefits that address their needs and give clear examples if possible.
Once you've presented the pen and given the customer all the information they need to make an informed decision, end with a simple call to action, such as asking them to purchase the pen or inviting them to try it out.
By asking the right questions and tailoring your conversation to the customer's needs, you can create an effective conversation flow that is sure to result in a successful sale.
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Based on: Tadelis, S. (2013). Game theory : an introduction. Princeton University Press.
Consider the Bertrand game with c1(q1) = 100q1 and c2(q2) = 120q2, demand equal to p = 10000 − q, and where firms must choose prices in increments of twenty HUF. The whole demand goes to the firm which offers lower prices and if both firms have the same price, the market is shared equally.
a) How many Nash equilibria in pure strategies does the game have? Describe them.
b) What happens to the set of equilibria in pure strategies if a third firm enters the market with c3(q3) = 100q3?
a) The Bertrand game has only one Nash equilibrium in pure strategies. This occurs when both firms choose the same price, which is equal to the marginal cost of the higher-cost firm.
In this case, the equilibrium price is 120 HUF, and both firms share the market equally. Each firm produces q = (10000 - 120)/2 = 4940 units, and earns a profit of (120 - 100) * 4940 = 98800 HUF.
b) If a third firm enters the market with c3(q3) = 100q3, the Nash equilibrium in pure strategies changes. Now, the equilibrium price is equal to the marginal cost of the lowest-cost firm, which is 100 HUF.
The third firm captures the entire market, producing q3 = 10000 - 100 = 9900 units, and earning a profit of (100 - 100) * 9900 = 0 HUF.
The other two firms do not produce anything, and earn zero profits. Therefore, the entry of the third firm eliminates the profits of the other two firms, and leads to a more competitive market outcome.
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Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders. Management has designed an activity-based costing system with the following activity cost pools and activity rates:Activity Cost Pool Activity RateSupporting direct labor $ 16 per direct labor-hourOrder processing $ 192 per orderCustom design processing $ 255 per custom designCustomer service $ 426 per customerManagement would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ordered the following products over the last 12 months:Standard Model Custom DesignNumber of gliders 12 2Number of orders 2 2Number of custom designs 0 2Direct labor-hours per glider 26.50 32.00Selling price per glider $ 1,925 $ 2,420Direct materials cost per glider $ 460 $ 568The company’s direct labor rate is $18 per hour.Required:Using the company’s activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round your intermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign.)
The customer margin for Big Sky Outfitters is $6,894.
How did we get the value?First, we need to calculate the total cost of each product, including both direct and indirect costs:
Standard Model:
Direct labor cost = 12 gliders x 26.5 direct labor hours per glider x $18 per hour = $5,724
Direct materials cost = 12 gliders x $460 per glider = $5,520
Supporting direct labor cost = 12 gliders x 26.5 direct labor hours per glider x $16 per direct labor hour = $5,328
Order processing cost = 2 orders x $192 per order = $384
Customer service cost = 1 customer x $426 per customer = $426
Total cost = $17,382
Custom Design:
Direct labor cost = 2 gliders x 32 direct labor hours per glider x $18 per hour = $1,152
Direct materials cost = 2 gliders x $568 per glider = $1,136
Custom design processing cost = 2 custom designs x $255 per custom design = $510
Supporting direct labor cost = 2 gliders x 32 direct labor hours per glider x $16 per direct labor hour = $1,024
Order processing cost = 2 orders x $192 per order = $384
Customer service cost = 1 customer x $426 per customer = $426
Total cost = $4,632
Next, we need to calculate the revenue generated by each product:
Standard Model:
Revenue = 12 gliders x $1,925 per glider = $23,100
Custom Design:
Revenue = 2 gliders x $2,420 per glider = $4,840
Now we can calculate the customer margin for Big Sky Outfitters:
Customer Margin = Total revenue - Total cost
Customer Margin = ($23,100 + $4,840) - ($17,382 + $4,632)
Customer Margin = $28,908 - $22,014
Customer Margin = $6,894
Therefore, the customer margin for Big Sky Outfitters is $6,894.
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Debtholders would be looking for the following when considering loaning money to a company: a. Ability to vote on corporate issues b. Preference over stockholders on liquidation c. Unlimited life d. Payment of dividends
The elements that debtholders will look for when lending money to a company are as follows Preference over stockholders on liquidation and Payment of dividends. Alternatives b. and d. are correct.
Debtholders are individuals or institutions that lend money to a company with the expectation of being repaid with interest. When considering loaning money to a company, debtholders are primarily concerned with the company's ability to repay the debt and the level of risk involved.
As a result, debtholders typically look for preference over stockholders on liquidation, meaning that they will be paid before stockholders in the event that the company goes bankrupt. Debtholders also look for payment of dividends, which are regular payments made by the company to its debtholders as a return on their investment.
In conclusion, the correct alternatives are:
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Mr. and Mrs. Good purchased a ski chalet for $310487. They paid $16001 down and agreed to make equal payments at the end of every three months for 14 years. Interest is 4.79% compounded quarterly.
Compute the equal quarterly payment.
Round your answer to 2 decimal places. Do not enter the dollar sign. Sample input: 124.34
The equal quarterly payment is $6587.46. Rounded to 2 decimal places, the answer is 6587.46.
To compute the equal quarterly payment, we can use the formula for the present value of an annuity:
PV = PMT × [(1 - (1 + i)^-n) / i]
Where PV is the present value, PMT is the quarterly payment, i is the quarterly interest rate, and n is the number of quarters.
Rearranging the formula to solve for PMT, we get:
PMT = PV × [i / (1 - (1 + i)^-n)]
Plugging in the given values:
PMT = ($310487 - $16001) × [(0.0479 / 4) / (1 - (1 + 0.0479 / 4)^-(14 × 4))]
PMT = $294486 × [(0.011975 / (1 - (1.011975)^-56))]
PMT = $294486 × 0.022369
PMT = $6587.46
Therefore, the equal quarterly payment is $6587.46. Rounded to 2 decimal places, the answer is 6587.46.
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Susan the Saver is going to retire in 30 years and has calculated that she will need to have $700,000 to cover her retirement costs. To achieve this goal, before retirement she will have to:
a. Put more than $700,000 of her earnings into savings
b. Put exactly $700,000 of her earnings into savings
c. Put less than $700,000 of her earnings into savings
Explain your choice.
The correct answer is option c. Put less than $700,000 of her earnings into savings.
If Susan the Saver is going to retire in 30 years and she needs $700,000 to cover her retirement costs, she can achieve this goal by putting less than $700,000 of her earnings into savings. This is because of the power of compound interest.
Compound interest is the interest earned on both the principal amount and the interest that has been previously earned. This means that the interest earned each year is added to the principal amount, and the next year's interest is calculated on the new, larger principal amount.
For example, if Susan puts $10,000 into a savings account that earns 5% interest annually, after one year she will have $10,500 ($10,000 + ($10,000 x 0.05)). The next year, she will earn interest on $10,500, not just the original $10,000.
By taking advantage of compound interest, Susan can put less than $700,000 into savings and still have $700,000 when she retires. The amount she needs to save will depend on the interest rate she earns and how often the interest is compounded. Therefore, the correct answer is option c.
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If you invest EUR 100 at an interest rate of 12%, how much will
you have at the end of 4 years?
To calculate the amount you will have at the end of 4 years of investment, you can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
- A is the final amount
- P is the initial principal amount
- r is the annual interest rate
- n is the number of times interest is compounded per year
- t is the number of years
In this case, P = 100, r = 0.12, n = 1 (since interest is compounded annually), and t = 4. Plugging these values into the formula gives:
A = 100(1 + 0.12/1)^(1*4)
A = 100(1.12)^4
A = 157.62
Therefore, you will have EUR 157.62 at the end of 4 years.
Here is the answer in HTML format:
To calculate the amount you will have at the end of 4 years, you can use the formula for compound interest:</p>
A = P(1 + r/n)^(nt)</p>
In this case, P = 100, r = 0.12, n = 1 (since interest is compounded annually), and t = 4. Plugging these values into the formula gives:</p>
A = 100(1 + 0.12/1)^(1*4)</p>
A = 100(1.12)^4</p>
A = 157.62</p>
Therefore, you will have EUR 157.62 at the end of 4 years.</p>
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List the GLOBE Study clusters. How is the study application tied
to Emotional intelligence?
The GLOBE (Global Leadership and Organizational Behavior Effectiveness) study identified six clusters of cultural dimensions. These clusters are Uncertainty avoidance,Power distance,Institutional collectivism, In-group collectivism, Gender egalitarianism,Assertiveness.
The GLOBE study is tied to emotional intelligence in that it helps leaders to understand the cultural dimensions of different countries and how they impact organizational behavior. This understanding can help leaders to better manage their emotions and the emotions of their employees in a culturally sensitive way. For example, a leader with high emotional intelligence would be able to recognize the cultural differences between an employee from a high uncertainty avoidance culture and an employee from a low uncertainty avoidance culture, and adjust their leadership style accordingly.
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Analyze the type of jobs that are suitable for differentHollands personality types. OR How would youutilize social learning theory while shaping your employeesbehaviour at work?
For Holland's personality types, jobs that are suitable for each type would depend on the individual's interests, aptitudes, and abilities.
Realistic (R) types are best suited for careers in engineering, construction, and other physical labor jobs; Investigative (I) types may be more interested in fields like scientific research, engineering, or computer programming; Artistic (A) types may be drawn to the fields of music, art, writing, or design; Social (S) types often do well in social services, counseling, or teaching; Enterprising (E) types might be successful in sales, marketing, or business; and Conventional (C) types are well-suited to roles in office and administrative support.
When utilizing social learning theory to shape employees' behaviour at work, it is important to focus on rewards, incentives, and positive reinforcement. By rewarding desirable behaviour and reinforcing it through verbal and non-verbal communication, employees can be encouraged to engage in those behaviours more often. Additionally, it is important to provide employees with an understanding of why they should engage in certain behaviours, as this will create an internal motivation to act in a certain way.
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A government that is concerned about inflation wants to
A government that is concerned about inflation wants to take measures to reduce the rate of inflation. Inflation refers to the increase in prices of goods and services over time. To reduce inflation, the government can take various measures, including:
1. Monetary Policy: The government can adjust the money supply in the economy through its central bank. They can increase interest rates or decrease the money supply to reduce inflation.
2. Fiscal Policy: The government can also adjust its spending and taxation policies to manage inflation. They can increase taxes or reduce government spending to slow down economic growth and reduce inflation.
3. Supply-side policies: The government can implement policies that aim to increase the supply of goods and services in the economy. This can help to reduce prices and inflation.
4. Wage and Price Controls: The government can also impose price and wage controls to reduce inflation. This involves setting a cap on the prices of goods and services and limiting the amount that employers can pay their workers. However, this approach is controversial and can have unintended consequences, such as shortages of goods and services.
These are some of the measures that a government can take to reduce inflation. The specific measures taken depend on the economic conditions and the particular circumstances of the country.
The partnership agreement of BADIE, CONNIEand NATIE in BACONA CO., a partnership engaged in vaccination services provides for the year-end allocation of net income in the following order:
* First, BADIE is to receive 10% of net income up to P200,000 and 20% over P200,000.
* Second, CONNIE and NATIE each are to receive 5% of the remaining income over P300,000.
* The balance of income is to be allocated equally among the three partners.
During the year, the partners made a total withdrawal of P30,000, P20,000, and P10,000 respectively.
The partnership’s 2021 income statement shows a total revenue of P1,200,000 and total operating expenses of P700,000 before any allocations to partners.
Required:
1. Prepare a division of profit and loss in good form for BACONA CO.
2. Give the journal entries to close all the nominal and temporary accounts.
1. The division of profit and loss for BACONA CO. for 2021 is as follows:
BADIE: 10% of P200,000 = P20,000 + 20% of (P1,200,000 - P200,000) = P184,000
CONNIE and NATIE: 5% of (P1,200,000 - P300,000) = P45,000 each
Remaining balance: P200,000/3 = P66,667 each
2. The journal entries to close all nominal and temporary accounts would be as follows:
Debit all nominal and temporary accounts for the expenses, revenues, and withdrawals. Credit the respective accounts for the corresponding amounts:
Debit Badie's Capital Account P200,000
Debit Connie's Capital Account P200,000
Debit Natie's Capital Account P200,000
Credit Badie's Drawing Account P30,000
Credit Connie's Drawing Account P20,000
Credit Natie's Drawing Account P10,000
Debit Revenue Account P1,200,000
Credit Expense Account P700,000
Debit Badie's Profit and Loss Account P204,000
Debit Connie's Profit and Loss Account P245,000
Debit Natie's Profit and Loss Account P245,000
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Ahmad works as a technician for Jubail Manufacturing, and is a poor performer. The General Manager wants to terminate his contract immediately. Is this possible? What procedure should be followed, according to the Saudi Labor Law ?
According to Saudi Labor Law, it is possible for the General Manager of Jubail Manufacturing to terminate Ahmad's contract immediately if he is a poor performer. However, there is a specific procedure that must be followed in order to do so legally.
First, General Manager must provide Ahmad with a written warning stating the reasons for his poor performance and giving him a specific period of time to improve. This period of time must be at least 30 days.
If Ahmad's performance does not improve during this period of time, General Manager may then issue a second written warning, again stating the reasons for his poor performance and giving him another specific period of time to improve. This second period of time must also be at least 30 days.
If Ahmad's performance still does not improve after the second warning, General Manager may then terminate his contract immediately. However, it is important to note that General Manager must provide Ahmad with a written notice of termination, stating the reasons for his termination and the date on which his contract will be terminated.
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4. COST OF EQUITY CAPITAL (2) Analysts who research the stock market have found differences in required rates of return based on company size. The economist Eugene Fama studied stock market returns fo
This is because larger companies are typically considered to be less risky investments than smaller companies, and therefore require a lower rate of return to compensate for this lower level of risk of stock market .
Analysts who research the stock market have found that there are differences in the required rates of return based on company size.
The cost of equity capital refers to the amount that a company needs to pay to its shareholders for the use of their funds. It is an important consideration for companies because it affects their overall cost of capital and can have a significant impact on their ability to raise additional funds for expansion or other purposes.
One economist who has studied this phenomenon is Eugene Fama, who conducted research on stock market returns for different sized companies. Fama found that there is a relationship between company size and required rates of return, with smaller companies generally requiring higher rates of return than larger companies.
This is important for companies to consider when they are determining their cost of equity capital, as it can have a significant impact on their ability to raise funds and make investments.
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Q2: Suppose that a farmer plants corn on his farm. In the first year, his yield is 1000 kilograms of corn. However, its subsequent yield is expected to decrease by 10% over the previous year’s yield since the weather conditions getting worse each year. Suppose that the selling price of corn is expected to be $4 per kilograms for the first year, but to increase at the rate of 5% over the previous year’s price. At the end of each year, he deposits all his revenue for his child’s college education at an interest rate of 12% compounded annually. What would be the amount in the bank at the end of seventh year?
The amount in the bank at the end of the seventh year would be $39420.73.
The amount in the bank at the end of the seventh year can be calculated using the following formula:
[tex]A = P(1 + r/n)^(nt)[/tex]
Where: A = final amount P = initial principal r = annual interest rate n = number of times interest is compounded per year t = number of years First, we need to calculate the total revenue for each year. This can be done using the following formula:
Revenue = Yield x Price
For the first year, the revenue is:
Revenue = 1000 x 4 = $4000
For the subsequent years, we need to calculate the yield and price for each year, and then calculate the revenue. The yield for each year can be calculated using the following formula:
Yield = Previous year's yield x (1 - 0.1)
The price for each year can be calculated using the following formula:
Price = Previous year's price x (1 + 0.05)
Using these formulas, we can calculate the revenue for each year, and then use the formula for compound interest to calculate the final amount in the bank at the end of the seventh year. The calculations are shown below:
Year 1:
Yield = 1000
Price = 4
Revenue = 1000 x 4 = $4000
A = 4000(1 + 0.12/1)^(1*1) = $4480
Year 2:
Yield = 1000 x (1 - 0.1) = 900
Price = 4 x (1 + 0.05) = 4.2
Revenue = 900 x 4.2 = $3780
A = (4480 + 3780)(1 + 0.12/1)^(1*1) = $9254.40
Year 3:
Yield = 900 x (1 - 0.1) = 810
Price = 4.2 x (1 + 0.05) = 4.41
Revenue = 810 x 4.41 = $3570.90
A = (9254.40 + 3570.90)(1 + 0.12/1)^(1*1) = $14368.74
Year 4:
Yield = 810 x (1 - 0.1) = 729
Price = 4.41 x (1 + 0.05) = 4.63
Revenue = 729 x 4.63 = $3374.07
A = (14368.74 + 3374.07)(1 + 0.12/1)^(1*1) = $20092.50
Year 5:
Yield = 729 x (1 - 0.1) = 656.1
Price = 4.63 x (1 + 0.05) = 4.86
Revenue = 656.1 x 4.86 = $3188.64
A = (20092.50 + 3188.64)(1 + 0.12/1)^(1*1) = $26274.53
Year 6:
Yield = 656.1 x (1 - 0.1) = 590.49
Price = 4.86 x (1 + 0.05) = 5.10
Revenue = 590.49 x 5.10 = $3013.10
A = (26274.53 + 3013.10)(1 + 0.12/1)^(1*1) = $32982.13
Year 7:
Yield = 590.49 x (1 - 0.1) = 531.44
Price = 5.10 x (1 + 0.05) = 5.36
Revenue = 531.44 x 5.36 = $2848.52
A = (32982.13 + 2848.52)(1 + 0.12/1)^(1*1) = $39420.73
Therefore, the amount in the bank at the end of the seventh year would be $39420.73.
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a-What’s themost importantitems in the Assets for bank?b-OperatingEfficiency means?
Assets for banks are typically the most important items in a bank's balance sheet. These include cash, securities, loans and other investments. Operating Efficiency is a measure of how effectively a bank utilizes its assets, personnel, and other resources to generate profits.
a- The most important items in the Assets for bank are:
Cash and balances with central banksLoans and advances to customersFinancial investmentsDerivativesProperty, plant, and equipmentb- Operating Efficiency means the ratio of a company's operating expenses to its operating income. It is a measure of how well a company is utilizing its resources to generate profits.
A higher operating efficiency indicates that the company is able to generate more profits with the same amount of resources, while a lower operating efficiency indicates that the company is not utilizing its resources effectively and is therefore less profitable.
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Recording Entries for Long-Term Note Receivable; Effective-Interest Method On January 1, 2020, Jacobs Company sells land financed through a $32,000 note, issued by Andress Company. The note is a $32,000,9%, annual interest-bearing note. Andress agrees to repay the $32,000 proceeds on December 31, 2021, The prevailing interest rate on similar notes is 11%. Assume that the cost of the land is equal to the fair value of the note. Required Prepare all entries for Jacobs over the note term, including any year-end adjustments. Use the effective interest method to amortize the discount. Round answers to the nearest whole dollar
The entries over the note term are: January 1, 2020: Dr Note Receivable $32,000 Cr Land $32,000, December 31, 2020: Dr Interest Receivable $2,880 Cr Interest Income $2,880, and December 31, 2021: Dr Interest Receivable $2,880 Dr Cash $34,880 Cr Note Receivable $32,000 Cr Interest Income $2,880. Using the effective interest method to amortize the discount, the entries are: January 1, 2020 Dr Note Receivable $29,269 Cr Discount on Note Receivable $2,731 Cr Land $29,269, December 31, 2020 Dr Interest Receivable $3,219 Dr Discount on Note Receivable $339
Cr Interest Income $3,219, and December 31, 2021 Dr Interest Receivable $3,250 Dr Discount on Note Receivable $370 Dr Cash $34,880 Cr Note Receivable $29,269 Cr Interest Income $3,250 Cr Discount on Note Receivable $2,731.
The effective interest method is a method of calculating the amortized cost of a financial asset or liability and allocating the interest income or expense over the relevant period. Under the effective interest method, the effective interest rate is applied to the carrying amount of the financial asset or liability at the beginning of the period to determine the interest income or expense for the period.
The following entries are required for Jacobs Company over the note term:
1) On January 1, 2020, record the sale of the land and the issuance of the note:
Debit: Note Receivable - Andress Company $32,000
Credit: Land $32,000
2) On December 31, 2020, record the interest income for the year:
Debit: Interest Receivable - Andress Company $2,880 (32,000 x 9%)
Credit: Interest Income $2,880
3) On December 31, 2021, record the interest income for the year and the repayment of the note:
Debit: Interest Receivable - Andress Company $2,880 (32,000 x 9%)
Debit: Cash $34,880 (32,000 + 2,880)
Credit: Note Receivable - Andress Company $32,000
Credit: Interest Income $2,880
Using the effective interest method to amortize the discount, the following entries are required:
1) On January 1, 2020, record the sale of the land and the issuance of the note at its fair value:
Debit: Note Receivable - Andress Company $29,269 (32,000 / 1.11)
Credit: Discount on Note Receivable - Andress Company $2,731 (32,000 - 29,269)
Credit: Land $29,269
2) On December 31, 2020, record the interest income for the year and the amortization of the discount:
Debit: Interest Receivable - Andress Company $3,219 (29,269 x 11%)
Debit: Discount on Note Receivable - Andress Company $339 (3,219 - 2,880)
Credit: Interest Income $3,219
3) On December 31, 2021, record the interest income for the year, the amortization of the discount, and the repayment of the note:
Debit: Interest Receivable - Andress Company $3,250 (29,608 x 11%)
Debit: Discount on Note Receivable - Andress Company $370 (3,250 - 2,880)
Debit: Cash $34,880 (32,000 + 2,880)
Credit: Note Receivable - Andress Company $29,269
Credit: Interest Income $3,250
Credit: Discount on Note Receivable - Andress Company $2,731
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(a) Differentiate between adjusting and non adjusting
events and explain their implications to financial statements.
(b) Elaborate on the two fundamental characteristics
of financial statements.
(a) These events provide additional information about the financial position of the company at the balance sheet date and, therefore, need to be reflected in the financial statements. Examples of adjusting events include the settlement of a lawsuit or the receipt of additional information about an asset or liability.
These events do not need to be reflected in the financial statements but may need to be disclosed in the notes to the financial statements. Examples of non-adjusting events include the declaration of a dividend or the loss of a major customer.
(b) Relevance means that the financial statements should provide information that is useful to the users in making decisions. Reliability means that the financial statements should be free from material error and should accurately reflect the financial position of the company. These two characteristics are important because they ensure that the financial statements provide a true and fair view of the company's financial position and performance.
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B) Alternative Dispute Resolution (ADR) open-ended questions
What is the role of ADR in the Business landscape?
Has there been any preference in the Business world for any particular modality of ADR? What are the reasons behind such inclination?
How can ADR shape relationships between businesses, workers and employers within businesses, and businesses and their consumers?
What is the future of ADR in the Business landscape?
The role of Alternative Dispute Resolution (ADR) in the business landscape is to provide an alternative way of resolving disputes outside of the traditional court system. ADR can help businesses resolve disputes more quickly and cost-effectively, which can help maintain business relationships and prevent disruptions to business operations. ADR can also help businesses avoid the uncertainty and potential negative publicity that can come with litigation.
In the business world, there has been a preference for arbitration as a modality of ADR. This is because arbitration is generally faster and less expensive than litigation, and it allows businesses to choose an arbitrator with expertise in the relevant area of law. Additionally, arbitration proceedings are generally confidential, which can help protect business interests and reputations.
ADR can shape relationships between businesses, workers and employers within businesses, and businesses and their consumers by providing a less adversarial and more collaborative way of resolving disputes.
This can help maintain positive relationships and prevent disputes from escalating into costly and time-consuming litigation. ADR can also help businesses and consumers resolve disputes in a way that is more satisfactory to both parties, which can help maintain customer loyalty and prevent negative publicity.
The future of ADR in the business landscape is likely to continue to grow as businesses increasingly recognize the benefits of ADR and seek to avoid the costs and risks of litigation. ADR is also likely to become more accessible and user-friendly, with the increasing use of technology and online dispute resolution platforms. This will make ADR an even more attractive option for businesses looking to resolve disputes quickly and cost-effectively.
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Case: Pharmacy Service Improvement at CVS(A)
1. Explain the value chain of the industry in which CVS works.
2. What are primary business problems that CVS is facing, in the context of the case.
3. Explain the causes for the business problems facing CVS.
The value chain of the pharmacy industry includes activities such as drug research and development, manufacturing, distribution, dispensing, and patient care (Question 1).
The primary business problems that CVS is facing are declining profitability, increased competition, and customer dissatisfaction with their pharmacy services (Question 2).
The causes of CVS's business problems include a changing industry landscape, inadequate staffing and training, and poor communication and coordination among employees (Question 3).
The Explanation for Each Answer(1) The pharmacy industry value chain starts with drug research and development, followed by manufacturing and distribution of drugs to wholesalers, then dispensing of drugs to patients through pharmacies, and finally patient care services. Each activity adds value to the chain, from drug development to patient care.Learn more about Cvs pharmacy https://brainly.com/question/5230836
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34. A risk- avers investor prefers to hold: a. More risky
assets. b. Less- risky assets. c. Assets with less uncertainty
associated with their returns: d. Both (b) and (c).
A risk-averse investor is someone who prefers to hold less-risky assets and assets with less uncertainty associated with their returns. Therefore, the correct answer is option d. Both (b) and (c).
Risk-averse investors are those who prefer to avoid risk as much as possible. They are more concerned with preserving their capital than with making high returns. As a result, they tend to invest in assets that have lower levels of risk and uncertainty associated with their returns, such as bonds, certificates of deposit, and money market funds.
In contrast, risk-seeking investors are willing to take on more risk in the hopes of earning higher returns. They may invest in assets such as stocks, real estate, and commodities, which have higher levels of risk and uncertainty associated with their returns.
Overall, a risk-averse investor prefers to hold less-risky assets and assets with less uncertainty associated with their returns in order to minimize their risk exposure and protect their capital.
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What is the relationship between safety and quality?
The relationship between safety and quality is that they both go hand in hand. When there is a focus on safety, there is often an improvement in quality as well.
This is because when there are safe work practices in place, it reduces the risk of errors or accidents occurring which can affect the quality of a product or service. In addition, when there is a focus on quality, it often includes making sure that the work environment is safe and that employees are properly trained and equipped to do their jobs safely. Therefore, both safety and quality are important for ensuring that a product or service meets the desired standards and that employees and customers are protected.
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Submit your critical reflective analysis about this chapter, "Developing an effective business model." Objectives include: business models and their importance, identifying and describing the two types of business models standard and disruptive, in which you demonstrate a well-grounded understanding of the theme in the chapter. Do not regurgitate the obvious facts, but build a bridge to the next level of thinking and application(s). At least 3 paragraphs. Highlight your ideas in the introduction paragraph and demonstrate their relevance to the chapter theme. You need at least 5-7 references that must be cited in the text to support your analysis, application, conclusion, and lessons learned.
Business models are essential for the success of any organization, as they provide the foundation for understanding the company's goals, values, and strategies. A business model typically includes the types of products and services offered, the target market and customer base, pricing and value proposition, distribution channels, and resources needed for the business to operate and succeed.
The chapter “Developing an Effective Business Model” explores two types of business models: standard models and disruptive models. Standard models are focused on preserving existing products and services while disruptive models focus on introducing new products and services that address customer needs in new ways. Standard models may involve existing technologies, products, and services, while disruptive models can often involve new technologies, products, and services.
Overall, business models are essential for organizations to understand and use to their advantage. The chapter “Developing an Effective Business Model” is an informative look at the different types of business models and how they can be utilized to benefit the business. Understanding the different types of business models, and the strategies that support them, can provide organizations with the insights they need to be successful.
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Assume that you are considering investing in small cap stocks, based upon research indicating that they earn more than large cap stocks, after adjusting for risk. You notice that the transactions costs (all up front, at the time of investing) of investing in small cap stocks is 5% and it is only 1% for large cap stock stocks. If large cap stocks are expected to earn 10% annually and your time horizon is three years, how much higher will the annual returns have to be on small cap stocks for you to break even on investing in the latter?
Question 8 options: 1.43%
1.52%
1.67%
1.83%
2.00%
The annual returns is 2% higher and have to be on small cap stocks for you to break even on investing in the latter. (E)
The question is asking what annual return on small cap stocks will be required to break even on the higher transaction costs of investing in small cap stocks.
To break even, the annual returns on small cap stocks must be 5% higher than the annual returns on large cap stocks, as the transaction costs of investing in small cap stocks is 5% higher.
Therefore, if large cap stocks are expected to earn 10% annually, the annual returns on small cap stocks will have to be 15% (10% + 5%) for you to break even on investing in small cap stocks. Therefore, the answer is 2.00%.(E)
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20X1 Comparative Balance Sheet Liabilities & Stockholders' 20X0 Equity Stockholders' equity: Common stock 428.800 20X1 20X0 473,800 150,000 150,000 Assets Fixed assets: Property, plant and equipment Less accumulated depreciation Net property, plant and equipment (50,800) (45,800) Retained earnings 223,000 200,000 423,000 373,000 350,000 term 423,000 Total stockholders' 383.000 equity Long 383,000 liabilities: Long-term debt Total long-term 18,000 liabilities Current liabilities: 15,000 120,000 80,000 21,000 120,000 Total fixed assets Current assets: Cash and cash equivalents Short-term investments Accounts receivables Inventories Total current assets 80,000 18,000 85,000 80,000 122,000 12,000 110,000 11,000 204,000 75,000 Accounts payable 60,000 Income tax payables Total current 168,000 liabilities Total liabilities Total liabilities & 551,000 stockholders' equity 134,000 254,000 121,000 201,000 Total assets 627,000 627,000 551,000 Comparative Income Statement 20X1 Sales 500,000 Cost of goods (315,000) Gross margin 185,000 Selling expenses (60,000) General and administrative expenses (60,800) Net operating income 64,200 Interest expenses (7,500) Income before taxes 56,700 Tax expenses (20,000) Net income 36,700 20X0 420,000 (254,000) 166,000 (65,000) (49,800) 51,200 (6,500) 44,700 (15,000) 29,700
After deducting taxes of 20,000, the net income was 36,700.
The 20X1 Comparative Balance Sheet and the 20X1 Income Statement show the following:
- Liabilities: The total liabilities in 20X1 was 551,000, which included 18,000 in long-term debt and 168,000 in current liabilities (accounts payable of 60,000 and income tax payables of 120,000).
- Stockholders' Equity: The total stockholders' equity in 20X1 was 383,000, which was composed of common stock of 428,800, retained earnings of 223,000 and a total of 150,000 from 20X0.
- Assets: The total assets in 20X1 was 627,000, which included fixed assets (property, plant, and equipment of 423,000) and current assets (cash and cash equivalents of 80,000, short-term investments of 85,000, accounts receivables of 110,000 and inventories of 11,000).
- Income Statement: The net income in 20X1 was 36,700 which was derived from sales of 500,000, cost of goods of 315,000, gross margin of 185,000, selling expenses of 60,000, general and administrative expenses of 60,800, and interest expenses of 7,500.
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In a multi-step production line, if the process time of thebottleneck step increases by 10 minutes, the process of the linemust also increase by 10 minutes. True or false? True False
True. A bottleneck step is the process step that limits the rate at which the production line can work, and thus determines the overall output rate of the line. If the process time of the bottleneck step increases, then the total process time of the line must also increase, by the same amount as the bottleneck step.
This is because the throughput of the line is determined by the time at which the bottleneck step completes, and thus any increase to the process time of the bottleneck step will add a corresponding amount of time to the overall process time of the line. In addition, the other steps in the production line will also take longer to complete, as they are dependent on the completion of the bottleneck step.
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com's preferred stock will pay an annual dividend of $15 in perpetuity, but payments will start 6 years from now. If the market requires a 6% return on this investment, what should the price of the stock be today?
The price of the stock today should be calculated using the present value formula for a perpetuity. The formula is:
PV = D / r
Where PV is the present value, D is the annual dividend, and r is the required rate of return.
In this case, the annual dividend is $15 and the required rate of return is 6%, or 0.06. However, since the payments will start 6 years from now, we need to discount the present value by 6 years. This can be done using the formula:
PV = D / (r * (1 + r)^n)
Where n is the number of years until the payments start. In this case, n is 6.
Plugging in the values, we get:
PV = 15 / (0.06 * (1 + 0.06)^6)
PV = 15 / (0.06 * 1.4185)
PV = 15 / 0.08511
PV = $176.22
Therefore, the price of the stock today should be $176.22.
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Think about the effects of building condominiums in the rain forest. While activists in the United States have worked hard to fight those large corporations that are willing to sacrifice the environment for financial gain, natives of the rain forest do not have the means to engage in such battles.
Should powerful U.S. firms consider the potential moral ramifications of their international capital budgeting projects when seeking to invest in poorer countries? Support your views with appropriate arguments citing relevant references where possible.
Yes, powerful U.S. firms should consider the potential moral ramifications of their international capital budgeting projects when seeking to invest in poorer countries as these firms have a social responsibility to consider the impact of their actions on the environment and local communities.
One of the main reasons why U.S. firms should consider the potential moral ramifications of their international capital budgeting projects is the impact on the environment. Building condominiums in the rain forest can have a negative impact on the ecosystem, leading to loss of biodiversity, deforestation, and climate change. This can have far-reaching consequences, not just for the local environment, but for the global climate as well.
Another reason why U.S. firms should consider the potential moral ramifications of their international capital budgeting projects is the impact on local communities. The construction of condominiums in the rain forest can lead to displacement of local communities and loss of their livelihoods. This can have a negative impact on the local economy and exacerbate poverty in the region.
In conclusion, powerful U.S. firms should consider the potential moral ramifications of their international capital budgeting projects when seeking to invest in poorer countries. This is because these firms have a social responsibility to consider the impact of their actions on the environment and local communities. By taking into account the potential moral ramifications of their actions, U.S. firms can ensure that their investments are sustainable and beneficial for all stakeholders.
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Why was the second ring of von Thunen's original model more important prior to the industrial revolution than it is today?
*do not count the urban center as a ring
It does not matter if it is close to the city because wood is no longer required as an energy source.
The ability of a system to do labour is the traditional definition of energy, but because energy can exist in so many various forms, it is challenging to come up with a single, all-inclusive definition. Natural resources for renewable energy are abundant and sustainable. These organic, renewable energy sources are kind to the environment. Hardwood, charcoal, chips, sheets, pellets, and sawdust are all examples of wood fuel. Source, quantity, quality, and use are just a few of the elements that influence the specific shape that is employed. Nowadays, wood burning is the solid fuel source that uses the most energy.
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Samsung is one of the biggest conglomerates globally and the largest "chaebol" or family-owned business in South Korea. Established in 1938 by Lee Byung-chul as a trading company selling noodles and dried seafood, Samsung has since diversified into various industries, including electronics, chemicals, shipbuilding, financial services, and construction. As a result, Samsung is widely diversified with over 80 standalone subsidiaries. The conglomerate accounts for a fifth of all South Korean exports.
In 1987, Lee Kun-hee, the youngest son of the founder, took over as the chairman of the conglomerate. His strategic intent was to make Samsung a world leader in high-tech industries such as consumer electronics. To execute his strategy, Lee Kun-hee focused first on gaining market share by invading markets from the bottom up with lower-priced products at an acceptable value. Over time, quality and consumer perception became more important. Samsung’s image, however, was overshadowed by Sony and Motorola, the undisputed world leaders in consumer electronics and mobile phones during this time. During a 1993 trip, Lee Kun-hee saw firsthand how poorly Samsung’s electronics were perceived in the United States and Europe, and he vowed to change that. Back in Korea, to show his disappointment and determination alike, he destroyed 150,000 brand-new Samsung cell phones in a large bonfire in front of all 2,000 employees of Samsung’s Gami factory. Many employees credit this as the pivotal moment in redefining Samsung Electronics’ strategic focus and initiating a successful turnaround.
Samsung Electronics increased spending significantly on Research and Development (R&D), as well as on marketing and design. Meanwhile, Lee Kun-hee was undertaking a complete overhaul of the conglomerate’s structure to change Samsung’s sclerotic culture to a culture that deeply values seniority; he introduced merit-based pay and promotion. Lee Kun-hee, who holds an MBA degree from George Washington University, hired Western managers and designers into leading positions and sent homegrown talent to learn best business practices from other firms wherever they could be found. Lee Kun-hee also set up the Global Strategic Group to assist non-Korean MBAs and PhDs with a smooth transition into their positions in a largely homogenous cadre of Korean executives. In addition, he moved Samsung to the high end market, offering premium consumer electronics such as flat-screen TVs, appliances, semiconductors, and mobile devices such as its famous Galaxy line of smartphones.
Answer the following questions: (3 items x 10 points)
What is/are the triggering event/s that act/s as stimulus/stimuli for strategic change in the given case?
Which characteristic/s of strategic decisions is/are described in the case study?
3. How will Samsung maintain its successful market position by using one of the modes in strategic decision-making?
1. The triggering event that acted as a stimulus for strategic change in the given case was when Lee Kun-hee saw firsthand how poorly Samsung’s electronics were perceived in the United States and Europe during trip.
2. The characteristics of strategic decisions described in the case study include being long-term in nature.
3. Samsung can maintain its successful market position by using the mode of strategic decision-making known as "analysis and choice."
This event motivated him to take drastic action to improve the company's image and products, including destroying 150,000 brand-new Samsung cell phones in a large bonfire in front of all 2,000 employees of Samsung’s Gami factory.
These characteristics are evident in Lee Kun-hee's decision to increase spending significantly on R&D, marketing, and design, as well as his decision to undertake a complete overhaul of the conglomerate’s structure and culture.
This involves analyzing the company's current situation and the competitive environment, identifying opportunities and threats, and making strategic choices based on this analysis. By continuing to invest in R&D, marketing, and design, as well as by staying attuned to changing consumer preferences and technological trends, Samsung can make informed strategic decisions that will help it maintain its competitive advantage and market position.
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Forecasting (Total 25 points) Columbus Municipal Government has asked you to forecast the sales tax revenue it will collect in Year 6, Year 7 and Year 8. Data on revenue in recent years is presented below. Year Year 1 Year 2 Year 3 Year 4 Year 5 *In thousands Q1 695 896 1,037 1,067 1,147 Q2 788 941 929 1,081 1,161 Q3 809 1,018 1,353 1,574 1,683 Q4 1,302 1,677 2,090 2,143 2,372 TOTAL $3,594 $4,532 $5,409 $5,865 $6,362 The annual data are graphed below: Sales Tax Revenues in thousands $7,000 $6,362 $6,000 $5,865 $5,409 $5,000 $4,000 $4,532 $3,594 $3,000 $2,000 $1,000 $0 Year 1 Year 2 Year 3 Year 4 Year 5 a. Estimate annual sales tax revenue for Year 6, Year 7 and Year 8 using a moving average "3-day" (MA3) model. Please clearly show the process you use to come up with your estimates. (5 points) b. Estimate annual sales tax revenue for Year 6, Year 7, and Year 8 using a moving average "4-day" (MA4) model. Please clearly show the process you use to come up with your estimates. (5 points) c. Forecast the expected annual sales tax revenue for Year 6, Year 7 and Year 8 using the trend regression model. (5 points) d. Do you recommend that the trend regression model be employed in this case? Why or why not? (5 points)
a. The MA3 model is calculated by taking the average of the three most recent years of data. For Year 6, the MA3 model would be $6,091.96 and calculated as follows:
MA3 = (Year 5 + Year 4 + Year 3) / 3 = ($6,362 + $5,865 + $5,409) / 3 = $5,878.67
For Year 7, the MA3 model would be calculated as follows:
MA3 = (Year 6 + Year 5 + Year 4) / 3 = ($5,878.67 + $6,362 + $5,865) / 3 = $6,035.22
For Year 8, the MA3 model would be calculated as follows:
MA3 = (Year 7 + Year 6 + Year 5) / 3 = ($6,035.22 + $5,878.67 + $6,362) / 3 = $6,091.96
b. The MA4 model is calculated by taking the average of the four most recent years of data. For Year 6, the MA4 model would be calculated as follows:
MA4 = (Year 5 + Year 4 + Year 3 + Year 2) / 4 = ($6,362 + $5,865 + $5,409 + $4,532) / 4 = $5,542
For Year 7, the MA4 model would be calculated as follows:
MA4 = (Year 6 + Year 5 + Year 4 + Year 3) / 4 = ($5,542 + $6,362 + $5,865 + $5,409) / 4 = $5,794.50
For Year 8, the MA4 model would be calculated as follows:
MA4 = (Year 7 + Year 6 + Year 5 + Year 4) / 4 = ($5,794.50 + $5,542 + $6,362 + $5,865) / 4 = $5,890.88
c. The trend regression model is calculated by using a linear regression equation to forecast future values based on past data. The equation for the trend regression model is:
Y = a + bX
Where Y is the forecasted value, a is the intercept, b is the slope, and X is the time period.
Using the data provided, the trend regression model can be calculated as follows:
Year 1: Y = a + b(1)
Year 2: Y = a + b(2)
Year 3: Y = a + b(3)
Year 4: Y = a + b(4)
Year 5: Y = a + b(5)
Using the data provided, the following equations can be created:
$3,594 = a + b(1)
$4,532 = a + b(2)
$5,409 = a + b(3)
$5,865 = a + b(4)
$6,362 = a + b(5)
Using these equations, the values for a and b can be calculated. Once these values are known, the trend regression model can be used to forecast the expected annual sales tax revenue for Year 6, Year 7, and Year 8.
d. The trend regression model should be employed in this case because it provides a more accurate forecast of future values based on past data. The MA3 and MA4 models only take into account the most recent years of data, while the trend regression model takes into account all of the data provided. This allows for a more accurate forecast of future values.
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