Quantity would be greater under perfect competition than under monopoly.
Under perfect competition, the market price of apples would be equal to the marginal cost of producing each apple. If we assume that Special Delivery has constant marginal cost of producing apples, then the marginal cost of producing each additional apple is equal to $5.
Therefore, under perfect competition, Special Delivery would produce and sell apples until the marginal cost equals the market price of $6. This means that the quantity produced and sold under perfect competition would be greater than 200.
In summary, under perfect competition, Special Delivery would produce and sell more apples than it does under monopoly because the market price would be equal to the marginal cost of production, resulting in a higher quantity supplied.
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assume you are holding a 1-year bond that is expected to pay $1,050 if all goes well. however, there is a 90 percent probability that the corporation will file for bankruptcy and bondholders will receive only $200. if the required rate of return is 15 percent, what is the present value of the bond? multiple choice question. $1,000 $247.83 $1250 $285
If the required rate of return is 15 percent, the present value of the bond is $247.83. So the option B is correct.
The weighted average of the cash flows under the two scenarios constitutes the predicted cash flows:
Expected cash flows = (probability of receiving $1,050 x $1,050) + (probability of receiving $200 x $200)
Expected cash flows = (0.1 x $1,050) + (0.9 x $200)
Expected cash flows = $105 + $180
Expected cash flows = $285
Next, the present value of the anticipated cash flows is determined as follows:
Present value = Expected cash flows/(1 + required rate of return)ⁿ
where n is how many years it will take to get the cash flows.
The present value of the bond is:
Present value = $285/ (1 + 0.15)¹
Present value = $247.83
So the option B is correct.
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netflix enjoys the triple scale advantage of the largest customer base, the largest selection, and the largest network of distribution centers. this can be attributed to:
Netflix's triple scale advantage can be attributed to several factors.
Firstly, the company has been able to build a massive customer base over the years by offering a wide range of high-quality content at affordable prices. This has allowed them to attract and retain a large number of subscribers, giving them a significant advantage over their competitors.
Secondly, Netflix has invested heavily in content production, licensing, and acquisition, which has enabled them to offer the largest selection of movies and TV shows among streaming services. This extensive library of content further strengthens their position in the market and makes it more difficult for competitors to catch up.
Lastly, Netflix has built the largest network of distribution centers globally, which allows them to efficiently deliver their content to their customers. This has resulted in faster delivery times, reduced shipping costs, and an overall better customer experience. The combination of these factors has given Netflix a significant competitive advantage over other streaming services.
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which of the following comparison statements is (are) true? i. an annuity has equal payments, perpetuity does not. ii. both an annuity and a perpetuity have equal payments. iii. an annuity covers a longer period of time than a perpetuity. iv. an annuity has a constant rate of return, perpetuity does not. i and iii only i and iv only ii only i only ii and iv only
The true statement is (i) An annuity has equal payments, a perpetuity does not. So, the correct answer is i only.
An annuity is a series of equal payments made at fixed intervals over a specified period of time, while a perpetuity is a series of equal payments made at fixed intervals that continue indefinitely. Hence, a perpetuity does not have an end date.
Statement (II) is false because a perpetuity has an infinite number of payments, while an annuity has a finite number of payments. Statement (III) is false because perpetuity lasts forever, while an annuity has a specific duration or period of time. Statement (IV) is false because both an annuity and a perpetuity can have a constant rate of return.
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the value of the following cash flows four years from today is $7,371.23. the interest rate is 4.2 percent. what is the value of the year 3 cash flow? year cash flow 1 $ 1,495 2 1,632 3 ? 4 2,615
The value of the following cash flows four years from today is $7,371.23. the interest rate is 4.2 percent. The value of the year 3 cash flow is $2,247.68.
Present Value = Future Value / (1 + r)
PV of Year 1 cash flow = $1,495 / (1 + 0.042) = $1,433.65
PV of Year 2 cash flow = $1,632 / (1 + 0.042) = $1,505.02
PV of Year 4 cash flow = $2,615 / (1 + 0.042) = $2,184.8
Total PV = PV of Year 1 + PV of Year 2 + PV of Year 3 + PV of Year 4
PV of Year 3 = $7,371.23 - $1,433.65 - $1,505.02 - $2,184.88 = $2,247.68
thus, the value of the Year 3 cash flow is $2,247.68.
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if bac is $85,000, duration is 75 days, pv is $21,000, ac is $20,000, and % complete is 27%, how far is the project ahead or behind schedule?
The project team should take appropriate actions to bring the project back on track and complete it within the scheduled time frame. To determine whether a project is ahead or behind schedule, we need to calculate the project's schedule variance (SV).
The formula for SV is as follows:
SV = % complete x BAC - EV
where EV (earned value) is equal to % complete x BAC.
First, we can calculate the EV using the given information:
EV = % complete x BAC = 0.27 x $85,000 = $22,950
Next, we can calculate the project's actual cost (AC) using the given information:
AC = $20,000
Using the PV (planned value) of $21,000, we can calculate the project's cost variance (CV):
CV = EV - AC = $22,950 - $20,000 = $2,950
Since the CV is positive, we can conclude that the project is currently under budget. However, to determine whether the project is ahead or behind schedule, we need to calculate the SV:
SV = % complete x BAC - EV = 0.27 x $85,000 - $22,950 = -$2,250
A negative SV indicates that the project is behind schedule. In this case, the project is $2,250 behind schedule. Therefore, the project team should take appropriate actions to bring the project back on track and complete it within the scheduled time frame. This could involve increasing the rate of progress to catch up with the planned schedule or revising the schedule to reflect the actual progress made.
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you are about to sign an interest swap to pay fixed and receive floating. the quote is 4.5-4.7% against libor flat. the principal is 100,000. what is the value of the swap? (please use a fixed rate to discount the cash flows.) round to the nearest us cent (2 decimal places
We must predict the anticipated cash flows based on the LIBOR rate in order to determine the present value of the floating payments. The floating amounts would be: Assuming a 2% flat LIBOR rate, they would be:Year 1: $100,000 times 2.
We must identify the fixed rate at which the present value of the fixed payments is equal to the present value of the floating payments in order to calculate the swap's worth. The fixed payments would be $4,600 a year ($100,000 principal x 4.6% fixed rate), assuming a constant rate of 4.6%. We must discount each fixed payment at the set rate in order to determine the present value of the fixed payments. With a discount rate of 4.6%, the following would be the present worth of the fixed payments:
Year 1: $4,600 / (1 + 4.6%)^1 = $4,395.63
Year 2: $4,600 / (1 + 4.6%)^2 = $4,195.08
Year 3: $4,600 / (1 + 4.6%)^3 = $4,001.98
Year 4: $4,600 / (1 + 4.6%)^4 = $3,815.89
Year 5: $4,600 / (1 + 4.6%)^5 = $3,636.47
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at what point does buying in bulk stop being a wise spending choice?when the consumer has a lot of space to store bulk itemswhen costs rise too quickly due to demandwhen bulk items are not on sale anymorewhen the consumer buys more than is needed
At point buying in bulk stop being a wise spending is when the consumer buys more than is needed, option D.
As the name indicates, buying in bulk involves purchasing a product in large numbers for use over an extended period of time. Due of the potential economic rewards, this tactic is employed. Such instances are;
1. Lower purchasing price: Most products that are purchased in bulk often come with a discount. When a consumer buys a product in huge numbers, the price is reduced from its typical price. Discounts typically reduce long-term costs.
2. To deal with varying prices: When prices for items in a market vary owing to dynamics of supply and demand, the best course of action is to buy the things in bulk when they are still reasonably priced to cover the time when the price will have increased.
When properly examined, buying products in bulk is a beneficial habit, especially when there is ample room to keep the things. But, if a buyer purchases more than is necessary, it may result in waste and hence foolish expenditure.
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unearned revenues are: expenses incurred because a customer has paid in advance. decreases in an asset. transferred to revenue when products and services are delivered. increases in assets as a result of delivering products or services to a customer. assets that will be used over time.
Unearned revenues are costs incurred as a result of a customer's upfront payment. shrinkage of an asset. supplied goods and services are converted to revenue. assets grow as a result of providing customers with goods or services. things that will be utilized in the future. is accurate.
Unearned income is money that a person or business receives in exchange for a good or service that hasn't yet been offered or provided. An account in financial accounting is unearned revenue. It is regarded as a liability, or a sum that the company owes. On a company's balance sheet, a standard financial report in accounting, it is listed as a current liability. In conclusion, unearned revenue is an asset that the firm receives, but that must first be used to provide a service or deliver goods before it can be considered completely earned. The business will invest time and money into this project. liabilities
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what role did analysis of the variation in the ice cream freezers and the extrusion process play in their application of lean six sigma methods to their operations? 1. how did casper's analysis of their use of nitrogen in their conveyor belt system to freeze the ice cream result in changes? what savings were they able to realize, based on their projects?
The role of analyzing variation in ice cream freezers and the extrusion process in applying Lean Six Sigma methods to operations involved identifying inefficiencies, reducing waste, and improving overall performance.
Casper's analysis of nitrogen use in the conveyor belt system led to process optimization, resulting in significant cost savings for the company.
To explain further, Casper's analyzed the variations in the ice cream freezers and the extrusion process by using Lean Six Sigma techniques such as process mapping, data analysis, and root cause analysis.
These techniques helped them identify areas of inefficiency and potential improvements. In the case of nitrogen use in the conveyor belt system, the analysis revealed opportunities to optimize the freezing process and reduce nitrogen consumption.
By implementing changes based on this analysis, Casper's was able to save costs on nitrogen and energy, improve product quality, and increase production capacity. These savings and improvements were a direct result of applying Lean Six Sigma methods to their operations.
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which of the following is true of duration matching in bond portfolio management? group of answer choices it is less widely used than direct matching. it does not allow portfolio managers as wide a choice of potential bond investments as direct matching does. it requires periodic rebalancing. it provides no protection against interest rate changes.
Duration matching in bond portfolio management requires periodic rebalancing. This is because the duration of a bond changes as time passes and as interest rates change.
Therefore, portfolio managers need to periodically adjust the duration of the bonds in the portfolio to ensure that it matches the duration of the liabilities they are trying to fund. Duration matching does provide some protection against interest rate changes, as it helps to minimize the impact of interest rate fluctuations on the value of the portfolio. However, it does not provide complete protection against interest rate changes. Duration matching also allows portfolio managers a wide choice of potential bond investments.The process of choosing and managing a group of investments to satisfy the long-term financial goals and risk tolerance of a client, a business, or an institution is known as portfolio management.
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if the fed initiates a program to purchase long-term treasury securities, it is most likely attempting to a. reduce inflation. b. reduce the rate on c
If the Fed initiates a program to purchase long-term Treasury securities, it is most likely attempting to reduce the rate on long-term interest rates (option b).
This is a policy known as "quantitative easing," which involves the central bank buying large quantities of government bonds to increase the money supply and lower interest rates. By reducing long-term interest rates, the Fed hopes to stimulate borrowing and investment in the economy, which can help promote economic growth and reduce unemployment. Additionally, by buying up government bonds, the Fed can increase demand for these securities and help keep their prices high, which can have a positive impact on financial markets.
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firm a and firm b have debt-total asset ratios of 44 percent and 34 percent, respectively, and returns on total assets of 8 percent and 14 percent, respectively. what is the return on equity for firm a and firm b? (do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
The return on equity for Firm A is 2.95% and for Firm B is 18.67%.
We can use the DuPont formula to calculate the return on equity (ROE) for each firm;
ROE = (Net Income/Total Equity) × (Total Equity/Total Assets) × (Total Assets /Sales)
For Firm A; Debt-Total Asset Ratio = 44%
Equity-Total Asset Ratio = 56%
Return on Total Assets = 8%
ROE = (Net Income/Total Equity) × (Total Equity/Total Assets) × (Total Assets / Sales)
ROE = (Net Income / Sales) × (Total Assets/Total Equity) × (Total Equity/ Sales)
ROE = Return on Total Assets × (1 - Debt-Total Asset Ratio) × (1 / Equity-Total Asset Ratio)
ROE = 8% × (1 - 0.44) × (1 / 0.56)
ROE = 2.95%
For Firm B; Debt-Total Asset Ratio = 34%
Equity-Total Asset Ratio = 66%
Return on Total Assets = 14%
ROE = (Net Income / Total Equity) × (Total Equity / Total Assets) × (Total Assets / Sales)
ROE = (Net Income / Sales) × (Total Assets / Total Equity) × (Total Equity / Sales)
ROE = Return on Total Assets × (1 - Debt-Total Asset Ratio) × (1 / Equity-Total Asset Ratio)
ROE = 14% × (1 - 0.34) × (1 / 0.66)
ROE = 18.67%
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grocers, a large food retailer, purchases fruits from several different tropical countries. when the fruits arrive in distribution centers across the united states, the quantities are reduced to amounts that are appropriate for store delivery. the stores, in turn, offer the fruits in quantities that depend on the consumption pattern of the customers. this act of offering products in smaller quantities based on consumption patterns is known as . intensive distribution breaking bulk forward integration holding inventory consumerization
The act of offering products in smaller quantities based on consumption patterns is known as consumerization.
Consumerization is a process by which products are tailored to meet the needs and preferences of consumers. It is a customer-centric approach to product development, where the needs of the customer are considered in every stage of the product lifecycle.
In the case of grocers, consumerization is an important strategy for ensuring that their customers have access to fresh fruits. Grocers purchase fruits from several different tropical countries, and the quantities are reduced to amounts that are appropriate for store delivery. By offering the fruits in quantities that depend on the consumption pattern of the customers, grocers are able to ensure that their customers have access to fresh fruits that meet their needs and preferences.
Consumerization is a powerful tool for grocers, as it allows them to offer a wide range of products that meet the needs and preferences of their customers. It is an important aspect of intensive distribution, which is a strategy that involves making products available in as many outlets as possible. By breaking bulk and holding inventory, grocers are able to ensure that they can meet the demands of their customers and remain competitive in a crowded marketplace.
In conclusion, consumerization is an important strategy for grocers who purchase fruits from several different tropical countries. By offering the fruits in quantities that depend on the consumption pattern of the customers, grocers are able to ensure that their customers have access to fresh fruits that meet their needs and preferences. Consumerization is a powerful tool for grocers, as it allows them to remain competitive in a crowded marketplace and meet the demands of their customers.
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Complete Question
Grocers, a large food retailer, purchases fruits from several different tropical countries. When the fruits arrive in distribution centers across the United States, the quantities are reduced to amounts that are appropriate for store delivery. The stores, in turn, offer the fruits in quantities that depend on the consumption pattern of the customers. This act of offering products in smaller quantities based on consumption patterns is known as _____.
glorious gloria, a florist, had the following transactions in august: earned $2,000 as revenues on account; collected $4,000 from a customer for goods sold last month; incurred $600 of repair expense and paid cash; paid $200 to a supplier that it owed from the previous month. what is the net income in august?
The net income in August is $1,200.
The net income for Gloria, a florist, in August is $5,200. To determine the net income, the revenues earned and expenses incurred by the florist must be considered. Here are the transactions that occurred in August: Earned $2,000 as revenues on account and collected $4,000 from a customer for goods sold last month. Incurred $600 of repair expenses and paid cash. paid $200 to a supplier that it owed from the previous month.
To calculate the net income, the expenses incurred must be deducted from the revenues earned. In this case, the only expenses incurred are the repair expense and payment to the supplier.
Therefore: Revenues earned: $2,000 + $4,000 = $6,000
Expenses incurred: $600 + $200 = $800
Net Income: $6,000 - $800 = $3,200
Therefore, the net income for Gloria in August was $3,200.
In August, Gloria's net income can be calculated by considering her revenues and expenses. She earned $2,000 in revenues, collected $4,000 from a customer, paid $600 for repair expenses, and paid $200 to a supplier. The net income is:
$2,000 (revenue) + $4,000 (collected from the customer) - $600 (repair expense) - $200 (payment to the supplier) = $5,200.
The net income in August was $5,200.
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which statement is the most accurate? multiple choice half of all high school dropouts are underemployed. half of all college graduates under 25 are underemployed. half of all college graduates under 25 are unemployed. despite the recession, nearly all college graduates of the class
The most accurate statement is Half of all college graduates under 25 are underemployed. Here option B is the correct answer.
Underemployment refers to a situation where an individual is working in a job that doesn't fully utilize their skills and education. Underemployment is a significant issue among recent college graduates who struggle to find employment opportunities that match their qualifications.
According to a study by the Federal Reserve Bank of New York, around 43% of recent college graduates are underemployed in their first job after graduation, while another study by the Economic Policy Institute found that around 50% of college graduates under the age of 25 are underemployed.
This is because of the increasing trend of employers requiring higher qualifications and experience for entry-level jobs. Thus, option B is the most accurate statement among the given options.
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Complete question:
Which statement is the most accurate? multiple choice
A - half of all high school dropouts are underemployed.
B - half of all college graduates under 25 are underemployed.
C - half of all college graduates under 25 are unemployed.
D - despite the recession, nearly all college graduates of the class
he cost accountants at the barkley company regressed total overhead costs and direct labor hours for the past 30-months and reported the following results: slope$41.27 intercept$596.36 correlation coefficient 0.934 what is the estimated overhead cost if 225 direct labor hours are expected to be used in the upcoming period? (rounded to the nearest whole dollar)
The estimated overhead cost for 225 direct labor hours is $9,888 (rounded to the nearest whole dollar).
The estimated overhead cost for 225 direct labor hours can be calculated using the regression equation: Y = a + bX, where Y is the total overhead cost, a is the intercept, b is the slope, and X is the number of direct labor hours.
Plugging in the given values, we get:
Y = 596.36 + 41.27(225)
Y = 596.36 + 9291.75
Y = 9888.11
Therefore, the estimated overhead cost for 225 direct labor hours is $9,888 (rounded to the nearest whole dollar).
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a woman borrows money from a bank to purchase a house. she promises to give the bank the house if she cannot repay the loan. this woman has signed a .
A woman borrows money from a bank to purchase a house. She promises to give the bank the house if she cannot repay the loan. This woman has signed a Mortgage agreement.
A mortgage agreement is a legally binding contract between a borrower and a lender. It is a promise to give the lender an interest in the property as security for the loan. The borrower agrees to make regular payments to the lender, until the loan is paid off in full. In the event that the borrower defaults on the loan, the lender can take possession of the property and sell it to recoup the loan. By signing the mortgage agreement, the borrower is giving the bank the right to take the property if the loan is not repaid. In this case, the woman is promising to give the bank the house if she cannot repay the loan.
The bank will have the legal right to take the house and sell it in order to recoup their loan. The mortgage agreement may also include additional provisions such as the amount of the loan, the interest rate, the repayment terms, the penalties for late payments, and any other clauses that both parties have agreed upon.
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as of march 31, outstanding checks total $52,000 and deposits in transit total $34,000. assuming there are no other reconciling items, what was the march 31 cash balance on fcc's books?
The march 31 cash balance on fcc's books was min( X- $ 18,000,$ 100,000). Without knowing the value of X, cannot determine the reconciled cash balance on March.
A company's cash balance is the total amount of money it currently has on hand. This money is kept on hand as a reserve to pay for any unanticipated cash outflows. A company might find itself unable to pay its bills without such a financial safety net. Cash holdings are typically used to pay down debt or distribute dividends to shareholders. Cash, a liquid asset, is the first item on a company's balance sheet. Using cash, the most liquid of all commodities, is the simplest way to buy other assets.
Balance per bank statement= $X.
Outstanding checks= $52,000
Deposits in transit=$34,000
Adjust balance per bank statement= Balance per bank statement - outstanding checks + Deposits in transits
Adjust balance per bank statement= X - $52,000+ $34,000
Adjust balance per bank statement= X - $18,000
Reconciled cash balance on March 31=min ( Adjust balance per bank statement, Balance per books)
Reconciled cash balance on March 31=min (X - $18,000, $10,0000).
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if there is a recession, what type of policy might congress decide to implement? group of answer choices expansionary fiscal policy expansionary monetary policy contractionary fiscal policy contractionary monetary policy
If there is a recession, Congress might decide to implement expansionary fiscal policy. This policy involves increasing government spending and/or reducing taxes to stimulate economic activity and boost aggregate demand.
By increasing government spending, the government can create jobs and provide additional income to individuals, thereby increasing their spending and stimulating economic activity. Similarly, by reducing taxes, individuals have more disposable income, which can lead to increased spending and investment. These policies can help to stimulate economic growth and reduce the severity and length of a recession.
Expansionary fiscal policy is the type of policy that Congress might decide to implement during a recession. This policy involves increasing government spending, reducing taxes, or a combination of both in order to stimulate economic growth and increase demand for goods and services. By increasing government spending, businesses will have more customers to sell their products to, which will help to increase economic activity.
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the direct approach could be a good choice for a bad-news message if you expect group of answer choices the customer will be shocked by the news. the news will make the reader angry or upset. the news to be accepted as a routine part of a business relationship. the news will disappoint the reader. to be able to solve the problem within a few days.
The correct option is E, The direct approach could be a good choice for a bad-news message if you expect the news to be accepted as a routine part of a business relationship.
A business relationship refers to the connection between two or more organizations, individuals or groups that have some level of interaction and engagement in the course of conducting business activities. It involves the exchange of goods, services, information, and resources, as well as the negotiation and implementation of agreements and contracts.Business relationships can take many forms, such as partnerships, joint ventures, supplier relationships, customer relationships, and alliances. They are built on trust, mutual understanding, and shared interests, and require effective communication, collaboration, and conflict resolution.
Effective business relationships are essential for the success and growth of organizations. They can lead to increased sales, improved customer satisfaction, better quality products and services, and access to new markets and resources. In addition, strong business relationships can help organizations navigate complex and uncertain business environments, and adapt to changes in the marketplace.
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Complete Question:-
The direct approach could be a good choice for a bad-news message if you expect
a. to be able to solve the problem within a few days.
b. the customer will be shocked by the news.
c. the news will disappoint the reader.
d. the news will make the reader angry or upset.
e. the news to be accepted as a routine part of a business relationship.
true or false: relative to a global tariff, the effect of creating a customs union in liechtenstein is negative.
The answer is true. The result of establishing a customs union in Lichtenstein is detrimental as compared to a global tariff.
The overall result is a decrease in trade with the effective, cost-effective producer. Trade creation is the term sometimes used to describe the increased trade in a customs union.
Common markets, economic unions, and federations are additional types of economic integration. Moreover, there may be dynamic benefits from customs unions. These are the same as the dynamic gains from freer trade in general, which also include the advantages of higher competition, economies of scale, investment stimuli, and labour and capital mobility advantages.
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lewis incorporated and clark enterprises report the following amounts for the year. lewis clark inventory (beginning) $28,000 $54,000 inventory (ending) 22,000 64,000 purchases 323,000 197,900 purchase returns 19,000 64,000 required: 1. calculate cost of goods sold for each company. 2. calculate the inventory turnover ratio for each company. 3. calculate the average days in inventory for each company. 4. which company appears to be managing its inventory more efficiently?
1. The cost of goods sold for each company is $310,000
2. The inventory turnover ratio for each company is 12.4 times
3. The average days in inventory for each company is 173.8 days
4. The company which appears to be managing its inventory more efficiently is Clark Enterprises.
Lewis Incorporated and Clark Enterprises are two companies that have reported their inventory details for the year. By analyzing their inventory data, we can evaluate how well they managed their inventory during the period.
To begin, we need to calculate the cost of goods sold for each company. This is the amount spent by the company on the inventory that was sold during the year. To calculate this, we use the formula:
Cost of Goods Sold = Beginning Inventory + Purchases - Purchase Returns - Ending Inventory
Using the data given, we can calculate the cost of goods sold for Lewis Incorporated as follows:
Cost of Goods Sold = $28,000 + $323,000 - $19,000 - $22,000 = $310,000
Similarly, we can calculate the cost of goods sold for Clark Enterprises as follows:
Cost of Goods Sold = $54,000 + $197,900 - $64,000 - $64,000 = $124,900
It is calculated by dividing the cost of goods sold by the average inventory for the period. The formula is:
Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory
Using the data given, we can calculate the inventory turnover ratio as follows:
Average Inventory = ($28,000 + $22,000) / 2 = $25,000
Inventory Turnover Ratio = $310,000 / $25,000 = 12.4 times
Similarly, we can calculate the inventory turnover ratio for Clark Enterprises as follows:
Average Inventory = ($54,000 + $64,000) / 2 = $59,000
Inventory Turnover Ratio = $124,900 / $59,000 = 2.1 times
Finally, we can calculate the average days in inventory for each company. This tells us how many days it takes for a company to sell its inventory. It is calculated by dividing the number of days in the year by the inventory turnover ratio. The formula is:
Average Days in Inventory = 365 / Inventory Turnover Ratio
Using the data given, we can calculate the average days in inventory for Lewis Incorporated as follows:
Average Days in Inventory = 365 / 12.4 = 29.4 days
Similarly, we can calculate the average days in inventory for Clark Enterprises as follows:
Average Days in Inventory = 365 / 2.1 = 173.8 days
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kelly inc. purchased equipment for $400,000, the useful life of the equipment is 10 years and the residual value is $20,000. using the double-declining method what is the depreciation expense in the first year?
For an equipment worth $400,000 with useful life of 10 years and residual value of $20,000, using the double-declining method, the depreciation expense in the first year is $80,000.
The double-declining method calculates depreciation as a percentage of the book value of the asset.
The depreciation expense in the first year for Kelly Inc.'s equipment, using the double-declining method, can be calculated as follows:1. Determine the straight-line depreciation rate:
Divide 100% by the useful life of the equipment.
Straight-line rate = 100% / 10 years = 10%
2. Double the straight-line rate to get the double-declining rate.
Double-declining rate = 2 * 10% = 20%
3. Apply the double-declining rate to the initial cost of the equipment.
Depreciation expense (first year) = $400,000 * 20% = $80,000
So, the depreciation expense in the first year using the double-declining method is $80,000.
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sirom scientific solutions has $5 million of outstanding equity and $5 million of bank debt. the bank debt costs 4% per year. the estimated equity beta is 2. if the market risk premium is 8% and the risk-free rate is 4%, compute the weighted average cost of capital if the firm's tax rate is 35%.
If the market risk premium is 8% and the risk-free rate is 4%, the WACC for Sirom Scientific Solutions is 13% if the firm's tax rate is 35%.
The weighted average cost of capital (WACC) is the overall cost of financing a company's operations. It is the average rate of return that a company must pay to its investors to finance its assets.
In order to calculate WACC for Sirom Scientific Solutions, we need to first calculate the cost of equity and the cost of debt, and then combine them with the respective weights of each component.
The cost of debt is given as 4% per year. To calculate the cost of equity, we can use the Capital Asset Pricing Model (CAPM). The CAPM formula is:
cost of equity = risk-free rate + beta * market risk premium
In this case, the risk-free rate is 4%, the market risk premium is 8%, and the estimated equity beta is 2. So, the cost of equity can be calculated as follows:
cost of equity = 4% + 2 * 8% = 20%
Next, we need to determine the weights of equity and debt. The total capital of the firm is $10 million, with $5 million coming from equity and $5 million from debt. So, the weights of equity and debt are 50% and 50%, respectively.
Finally, we can calculate the WACC using the following formula:
WACC = (cost of equity * weight of equity) + (cost of debt * (1 - tax rate) * weight of debt)
Substituting the values, we get:
WACC = (0.20 * 0.5) + (0.04 * (1 - 0.35) * 0.5) = 0.13 or 13%
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what is measured on the vertical axis of the aggregate demand/aggregate supply model? the price level nominal income real gross domestic product (gdp) the interest rate
The aggregate demand / aggregate supply model is an economic model that represents two opposing forces that determine macroeconomic equilibrium. The model shows the interaction between the aggregate supply and aggregate demand curves, which form the short-run equilibrium, as well as long-run equilibrium.
The price level is plotted on the vertical axis of the graph, while the output or real GDP is plotted on the horizontal axis. In the short run, the aggregate demand curve represents the level of aggregate demand that is consistent with the existing supply of goods and services, and the economy's output adjusts to meet this level of demand.
The supply of goods and services is fixed in the short run, so changes in demand affect the price level rather than the level of output. In the long run, the aggregate supply curve shifts to meet the demand, and the output returns to its natural level. This shift is caused by changes in the factors of production, such as labor, capital, and technology.In conclusion, the aggregate demand / aggregate supply model represents two forces that determine macroeconomic equilibrium, and the price level is plotted on the vertical axis.
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abc has beginning inventory for the year of $18,000. during the year, abc purchases inventory for $230,000 and has cost of goods sold equal to $233,000. abc's ending inventory equals:
To calculate ABC's ending inventory, we can use the formula: Ending inventory = Beginning inventory + Purchases - Cost of goods sold
Plugging in the given values, we get: Ending inventory = $18,000 + $230,000 - $233,000
Ending inventory = $15,000
Therefore, ABC's ending inventory for the year is $15,000. This means that ABC has $15,000 worth of inventory remaining at the end of the year after accounting for the cost of goods sold and purchases during the year. This ending inventory value will be carried forward to the next accounting period as the beginning inventory value.
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assume that all of the costs in this problem are variable. also, assume that the technology support department cost included 1,000 hours (you paid them a rate of $21/hour). what is the maximum hourly rate bid you would accept from a third party to outsource technology? (note: only consider the costs and factors presented in this problem).
The maximum hourly rate bid that could be accepted from a third party to outsource technology is $23/hour.
Since all costs in this problem are variable, we can use the following formula to determine the maximum hourly rate bid we would accept from a third party:
Maximum hourly rate = (Total variable cost - In-house variable cost) / Total hours
Total variable cost = $42,000 (software licenses) + $2,000 (maintenance and support) = $44,000
In-house variable cost = 1,000 hours x $21/hour = $21,000
Total hours = 1,000 hours
Plugging in the values, we get:
Maximum hourly rate = ($44,000 - $21,000) / 1,000 hours
Maximum hourly rate = $23/hour
Therefore, we would accept a maximum hourly rate bid of $23/hour from a third party to outsource technology.
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what traditional strategy does freddie mac use to help create liquidity in mortgage markets? issuing bonds and using the proceeds to purchase high-quality mortgages on the primary mortgage market issuing bonds and using the proceeds to purchase very risky subprime mortgages on the primary mortgage market issuing bonds and using the proceeds to purchase very risky subprime mortgages on the secondary mortgage market issuing bonds and using the proceeds to purchase high-quality mortgages on the secondary mortgage market
In order to increase the secondary mortgage market in the United States, Freddie Mac was established in 1970 as a component of the Emergency Home Finance Act.
In the years preceding the financial crisis, Fannie Mae and Freddie Mac continuously injected more cash into the American housing finance system by purchasing an excessive number of mortgages on the secondary market. This supported the housing boom that developed from 2005 to 2007.
The fees charged to initiate a mortgage and the disparity between the interest rate charged to a borrower and the premium a secondary market will pay for that interest rate are the two main ways that mortgage originators typically generate income.
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pirmin's bike shop is behind on a custom bike and needs to crash 8 hours of time from the 8-step project. suppose pirmin calls the customer and asks for a project extension, reducing the amount of time he needs to crash. activity normal duration (hours) normal cost ($) crash duration (hours) crash cost ($) immediate predecessors a 2 10 1 17 - b 3 15 2 23 a c 5 25 4 30 b d 3 20 1 24 c e 6 30 4 45 c f 2 40 1 60 e g 7 35 6 50 f h 10 50 7 80 d,g a. what is the critical path? [ select ] b. what is the project length? [ select ] c. which activity should the bike shop crash first [ select ] , and how much would it add to the project cost? [ select ] d. which activity should be crashed next to reduce an additional hour off the project [ select ] , and what would be the total cost? (reducing the project by 2 hours) [ select ] e. which activity(s) should be crashed next if you needed to reduce the project by another 2 hours (total 4 hours) and what would be the total cost for the 4 hour reduction
a. Critical path: A-C-E-F-G-H.
b. Project length: 33 hours.
c. Activity F should be crashed first, adding 1 hour at a cost of $20.
d. Activity A should be crashed next, adding 1 hour at a cost of $7.
e. Activities B and D should be crashed next at a total cost of $40.
a) The basic way is A-B-C-E-F-G-H with a length of 34 hours.
b) The undertaking length is 34 hours.
c) The bicycle shop ought to crash action E first by 2 hours, adding $30 to the venture cost.
d) The following action to crash ought to be B by 60 minutes, adding $8 to the venture cost. The complete expense to decrease the undertaking by 2 hours is $38.
e) To decrease the undertaking by an additional 2 hours, movement C ought to be crashed by 60 minutes, adding $5 to the venture cost. Assuming one more hour should be crashed, action G can be crashed by 60 minutes, adding $15 to the undertaking cost. The all out cost for the 4-hour decrease would be $58.
Pirmin's bicycle shop can decide to crash exercises in light of their expense and the time expected to finish them. By crashing the basic way, Pirmin can diminish the span of the undertaking, yet it will expand the venture cost. In this situation, the bicycle shop can initially crash movement E by 2 hours and afterward action B by 1 hour to lessen the task by 2 hours. In the event that additional time should be crashed, the bicycle shop can crash action C by 1 hour and afterward action G by 1 hour to diminish the venture by an additional 2 hours.
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a bank makes a 30 year fully amortizing frm for $1,000,000 at an annual interest rate of 4.25% compounded monthly, with monthly payments. what is the market value of this loan after 7 years of payments if the annual interest rate for this loan is 7% compounded monthly?
The market value of the loan after 7 years of payments, with an annual interest rate of 7% compounded monthly, is approximately $852,716.82.
Calculate the monthly interest rate for the new interest rate of 7% compounded monthly:
i = 7% / 12 = 0.5833%
Next, calculate the number of remaining payments on the loan after 7 years:
n = (30 years × 12 months per year) - (7 years × 12 months per year) = 276
Using the formula for the monthly payment on a fully amortizing loan, can calculate the monthly payment on the loan:
P = A / [(1 - (1 + i)⁻ⁿ / i]
Where:
P = monthly payment
A = loan amount
i = monthly interest rate
n = total number of payments
Plugging in the values, we get:
P = $1,000,000 / [(1 - (1 + 0.5833%)⁻²⁷⁶) / 0.5833%]
P = $5,838.45
Using the formula for the present value of an annuity, calculate the market value of the remaining payments on the loan:
PV = P × [(1 - (1 + i)⁻ⁿ) / i] × (1 + i)
Where:
PV = present value
P = monthly payment
i = monthly interest rate
n = number of remaining payments
Plugging in the values, get:
PV = $5,838.45 × [(1 - (1 + 0.5833%)⁻²⁷⁶) / 0.5833%] ×(1 + 0.5833%)
PV = $852,716.82
Therefore, the market value of the loan after 7 years of payments, with an annual interest rate of 7% compounded monthly, would be approximately $852,716.82.
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