Audit quality is important because it ensures that financial statements are presented accurately and fairly. This helps investors, creditors, and other stakeholders make informed decisions about the company. In a rapidly changing and complex world, maintaining audit quality can be a challenge.
However, it can be achieved through several measures:
1. Maintaining independence: Auditors should remain independent and objective in their work. This means avoiding any conflicts of interest and not allowing personal or professional relationships to influence their judgment.
2. Continuing education: Auditors should stay up-to-date on the latest accounting and auditing standards, as well as any changes in the business environment.
3. Using technology: Auditors should use technology to improve their work processes and make their audits more efficient and effective.
4. Effective communication: Auditors should communicate clearly and effectively with all parties involved in the audit, including the company being audited, other auditors, and regulators.
5. Quality control: Auditing firms should have strong quality control systems in place to ensure that their audits are conducted in accordance with professional standards and regulations.
By following these measures, auditors can maintain audit quality and continue to provide reliable and accurate information to stakeholders.
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Viviane has decided it is time to plan for her retirement. At the end of each year for the next 20 years, she will save $5,000 in a retirement account. If the account earns 5% per year, how much will Vivian have saved in 20 years?Viviane has decided it is time to plan for her retirement. At the end of each year for the next 20 years, she will save $5,000 in a retirement account. If the account earns 5% per year, how much will Vivian have saved in 20 years?
Viviane will have saved $265,330 in her retirement account in 20 years.
To calculate how much Viviane will have saved in 20 years, we can use the formula for future value of an annuity, which is:
FV = PMT x ((1 + r)^n - 1) / r
Where:
FV = future value of the annuity
PMT = payment made each period
r = interest rate per period
n = number of periods
In this case, PMT is $5,000, r is 5% per year, and n is 20 years. We need to convert the interest rate to a per-period rate by dividing it by the number of periods in a year. Assuming payments are made at the end of each year, there are 1 period per year, so the per-period interest rate is:
r / n = 5% / 1 = 5%
Substituting these values into the formula, we get:
FV = $5,000 x ((1 + 5%)^20 - 1) / 5%
FV = $5,000 x (2.6533) / 5%
FV = $5,000 x 53.066
FV = $265,330
Therefore, Viviane will have saved $265,330 in 20 years if she saves $5,000 at the end of each year in a retirement account that earns 5% per year.
The formula works by first calculating the future value of each periodic payment using the formula for the future value of a single lump sum. Then, it adds up all of the future values of the periodic payments to arrive at the total future value of the annuity. It's important to note that this formula assumes a constant interest rate and periodic payment over the life of the annuity. If these values change, the future value of the annuity will also change. Additionally, taxes and fees may also affect the actual value of the annuity.
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Jamaliah receives an invoice for the purchase of 40 batteries for RM 8,440 on 31 March 2021. Trade discounts are 5 % and 3 % and the cash discount terms are 8/10, 5/30, n/60. She pays the invoice on 19 April 2021. She plans to sell the batteries by allowing 10 % of the cost for operating expenses and 28 % of the selling price for gross profit. (a) Find the payment on 19 April 2021.(b) Find the selling price and the net profit for each battery.(c) After two months, Jamaliah manages to sell 30 batteries. The remaining 10 batteries are sold by allowing 10 % markdown. Calculate the total sales made by Jamaliah if all the batteries are sold.
(a) The payment on 19 April 2021 after trade discounts and cash discounts are applied is RM 7,376.56. (b) The selling price and net profit for each battery is RM 281.74 and RM 78.89 respectively. (c) If all the batteries are sold, the total sales made is RM 10,987.90.
(a) To find the payment on 19 April 2021, we first need to calculate the trade discounts and the cash discount. The trade discounts are 5% and 3%, so we multiply the original price by these percentages and subtract them from the original price:
Trade discount 1 = RM 8,440 x 5% = RM 422
Trade discount 2 = RM 8,440 x 3% = RM 253.20
Total trade discount = RM 422 + RM 253.20 = RM 675.20
Price after trade discount = RM 8,440 - RM 675.20 = RM 7,764.80
Next, we calculate the cash discount. Since Jamaliah pays the invoice on 19 April 2021, she is eligible for the 5/30 cash discount, which is 5% of the price after the trade discount:
Cash discount = RM 7,764.80 x 5% = RM 388.24
Price after cash discount = RM 7,764.80 - RM 388.24 = RM 7,376.56
Therefore, the payment on 19 April 2021 is RM 7,376.56.
(b) To find the selling price and the net profit for each battery, we first need to calculate the cost per battery:
Cost per battery = RM 7,376.56 / 40 = RM 184.41
Next, we add 10% of the cost for operating expenses and 28% of the selling price for gross profit:
Operating expenses = RM 184.41 x 10% = RM 18.44
Gross profit = Selling price x 28%
Selling price = (RM 184.41 + RM 18.44 + Gross profit) / (1 - 28%)
Selling price = RM 202.85 / 0.72
Selling price = RM 281.74
Therefore, the selling price for each battery is RM 281.74 and the net profit for each battery is RM 281.74 - RM 184.41 - RM 18.44 = RM 78.89.
(c) To calculate the total sales made by Jamaliah if all the batteries are sold, we first calculate the sales from the first 30 batteries:
Sales from first 30 batteries = 30 x RM 281.74 = RM 8,452.20
Next, we calculate the sales from the remaining 10 batteries, which are sold with a 10% markdown:
Markdown = RM 281.74 x 10% = RM 28.17
Selling price after markdown = RM 281.74 - RM 28.17 = RM 253.57
Sales from remaining 10 batteries = 10 x RM 253.57 = RM 2,535.70
Total sales = RM 8,452.20 + RM 2,535.70 = RM 10,987.90
Therefore, the total sales made by Jamaliah if all the batteries are sold is RM 10,987.90.
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NRM Industries Limited (NRM) is a large family-owned, import-export business. NRM was founded in 1972 by three brothers named Virk, who used the initials of their first names. Now, control is about to be passed from the brothers to their children, seven of whom work directly for NRM. Another three children work for companies with whom NRM does business. One, Virk Logistics, manages the warehouses and deliveries for NRM. The Board of Directors is composed of the three brothers plus all ten of their children.As part of estate planning, each brother owns a different company that owns their shares of NRM. When they formed the company, they each took one common share. Later, they reorganized. Each brother traded their one share for 10,000 new shares. Now they are about to reorganize again and go public. Their plan is to trade each10,000 shares for 10,000,000 shares and issue another 20,000,000 shares to the public.NRM has never had an audit. Jasmine Virk, CFO, has approached your audit firm, Rowlands, Marcellin and Khan (RMK) to do an audit prior to issuing a prospectus. Jasmine went to college with one of your partners. Sales in 2020 for NRM are approximately $130 million.RequiredBriefly discuss five elements to consider in your engagement planning.
There are several elements that should be considered in the engagement planning process for the audit of NRM Industries Limited.
These include:
1. Understanding the business: It is important to gain an understanding of NRM's business, including its operations, industry, and the regulatory environment in which it operates. This will help to identify potential risks and areas of focus for the audit.
2. Assessing the risk of material misstatement: The risk of material misstatement refers to the likelihood that the financial statements contain material errors or omissions. Assessing this risk will help to determine the nature, timing, and extent of audit procedures to be performed.
3. Considering the involvement of other auditors: As NRM is a large, family-owned business with multiple subsidiaries, it is likely that other auditors will be involved in the audit. It is important to consider the work performed by these auditors and how it will affect the overall audit.
4. Evaluating internal controls: Internal controls are the policies and procedures that a company has in place to ensure the accuracy and completeness of its financial statements. Evaluating the effectiveness of these controls will help to determine the extent to which reliance can be placed on them during the audit.
5. Communicating with management and those charged with governance: It is important to establish clear lines of communication with management and those charged with governance, including the Board of Directors. This will help to ensure that any issues or concerns are addressed in a timely and effective manner.
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DANGOTE INDUSTRIES ZAMBIA LIMITED is located in Ndola, Zambia and is part of the Cement and Concrete Product Manufacturing Industry. Pursuing a cost-leadership strategy, the company has tried to improve quality and reduce costs. As a result of the actions taken over the last year, quality has significantly improved in 2021 while rework and unit costs of the Cement have decreased. Dangote has reduced manufacturing capacity because capacity is no longer needed to support rework. Dangote has also lowered selling price to gain market share and unit sales have increased. Information about the current period (2021) and last period (2020) follows:
2020
2021
1. Units of Cement produced and sold
18,000
30,000
2. Selling price
K150
K120
3. Direct materials used (units)
21,600
32,400
4. Direct material cost per unit
K36
K36
5. Manufacturing capacity in units processed
36,000
33,600
6. Total packaging costs
792,000
739,200
7. Packaging cost per unit of capacity (row 6, row5)
K26.4
K26.4
8. Selling and customer-service capacity
240 customers
240 customers
9. Total selling and customer-service costs
K42,000
K45,600
10 Selling and customer-service capacity cost per customer ((row 9 , row 8)
K210
K228
Packaging costs in each year depend on production capacity defined in terms of units that can be processed ,
not the actual units started. Selling and customer-service costs depend on the number of customers that
Dangote can support, not the actual number of customers it serves. Dangote has 150 customers in 2020 and
180 customers in 2021.
1.Calculate operating income of Dangote for 2020 and 2021.
2.Calculate the growth, price-recovery, and productivity components that explain the change in operating income from 2020 to 2021.
3.Comment on your answer in requirement 2. What do these components indicate? How does this relate to Dangote ’s strategy and its success in implementation? Explain.
4. Suppose that during 2021, the market for Cement increased by 25%. All increases in market share (that is, sales increases greater than 25%) and decreases in the selling price of Cement are the result of Dangote ’s strategic actions. Calculate how much of the change in operating income from 2020 to 2021 is due to the industry-market-size factor, product differentiation, and cost leadership. How does this relate to Dangote ’s strategy and its success in implementation? Explain.
5.Calculate the amount and cost of (a) unused manufacturing capacity and (b) unused selling and customer-service capacity at the beginning of 2021 based on actual production and actual number of customers served in 2021.
6.Suppose Dangote can add or reduce its selling and customer-service capacity in increments of 10 customers. What is the maximum amount of costs that Dangote could save in 2021 by downsizing selling and customer-service capacity?
7.Dangote, does not eliminate any of its unused selling and customer-service capacity. Why might Dangote not downsize?
Answer and explanation for these questions are as follows:
1. Operating income of Dangote for 2020 and 2021:
2020:
Revenue = 18,000 units x K150 = K2,700,000
Direct material cost = 21,600 units x K36 = K777,600
Packaging cost = 36,000 units x K26.4 = K950,400
Selling and customer-service cost = 240 customers x K210 = K50,400
Operating income = K2,700,000 - K777,600 - K950,400 - K50,400 = K921,600
2021:
Revenue = 30,000 units x K120 = K3,600,000
Direct material cost = 32,400 units x K36 = K1,166,400
Packaging cost = 33,600 units x K26.4 = K886,560
Selling and customer-service cost = 240 customers x K228 = K54,720
Operating income = K3,600,000 - K1,166,400 - K886,560 - K54,720 = K1,492,320
2. Growth, price-recovery, and productivity components:
Growth component = (30,000 units - 18,000 units) x K150 = K1,800,000
Price-recovery component = (K120 - K150) x 30,000 units = -K900,000
Productivity component = (K777,600 + K950,400 + K50,400) - (K1,166,400 + K886,560 + K54,720) = -K329,280
3. The growth component indicates that Dangote was able to increase its sales volume in 2021, which contributed to the increase in operating income. The price-recovery component indicates that Dangote lowered its selling price in 2021, which had a negative impact on operating income. The productivity component indicates that Dangote was able to reduce its costs in 2021, which contributed to the increase in operating income. These components relate to Dangote's strategy of cost-leadership, as the company was able to reduce costs and improve quality, which allowed it to lower its selling price and gain market share.
4. Industry-market-size factor = 25% x 18,000 units x K150 = K675,000
Product differentiation = (30,000 units - 25% x 18,000 units - 18,000 units) x K150 = K1,125,000
Cost leadership = (-K900,000) + (-K329,280) = -K1,229,280
The industry-market-size factor indicates that the increase in the market for Cement contributed to the increase in operating income. The product differentiation component indicates that Dangote was able to gain market share through its strategic actions, which contributed to the increase in operating income. The cost leadership component indicates that Dangote was able to reduce its costs, which contributed to the increase in operating income. These components relate to Dangote's strategy of cost-leadership, as the company was able to reduce costs and improve quality, which allowed it to lower its selling price and gain market share.
5. (a) Unused manufacturing capacity = 33,600 units - 30,000 units = 3,600 units
Cost of unused manufacturing capacity = 3,600 units x K26.4 = K95,040
(b) Unused selling and customer-service capacity = 240 customers - 180 customers = 60 customers
Cost of unused selling and customer-service capacity = 60 customers x K228 = K13,680
6. The maximum amount of costs that Dangote could save in 2021 by downsizing selling and customer-service capacity is K13,680, which is the cost of unused selling and customer-service capacity.
7. Dangote may not downsize its unused selling and customer-service capacity because it may expect to need the capacity in the future, or it may want to maintain the capacity in case of unexpected increases in demand. Additionally, downsizing may have negative impacts on employee morale and customer relationships, which could ultimately have a negative impact on the company's performance.
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Develop a 12-month revenue forecast similar to 14.2 based on the following informationJanuary$3,500,000.00February$1,320,000.00March$800,000.00April$3,470,000.00May$ 1,000,000.00June$1,500,000.00July$1,491,000.00August$3,369,000.00September$2,478,000.00October$3,700,000.00November$3,500,000.00December$6,500,000.00
To develop a 12-month revenue forecast similar to 14.2 based on the given information, we need to add up the revenues for each month and divide by 12 to get the average monthly revenue. This will give us an estimate of the revenue for each month in the forecast.
Step 1: Add up the revenues for each month:
$3,500,000 + $1,320,000 + $800,000 + $3,470,000 + $1,000,000 + $1,500,000 + $1,491,000 + $3,369,000 + $2,478,000 + $3,700,000 + $3,500,000 + $6,500,000 = $32,128,000
Step 2: Divide the total revenue by 12 to get the average monthly revenue:
$32,128,000 / 12 = $2,677,333.33
Step 3: Use the average monthly revenue to create the 12-month revenue forecast:
January: $2,677,333.33
February: $2,677,333.33
March: $2,677,333.33
April: $2,677,333.33
May: $2,677,333.33
June: $2,677,333.33
July: $2,677,333.33
August: $2,677,333.33
September: $2,677,333.33
October: $2,677,333.33
November: $2,677,333.33
December: $2,677,333.33
The 12-month revenue forecast is $2,677,333.33 for each month, for a total of $32,128,000 for the year.
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BackgroundA virus named Covid-Zetta is spreading across the world with high contagious and mortality rates. Many countries have tried to tackle the virus with various measures. Human interactions have to be limited and Work from Home (WFH) needs to be imposed. Fortunately, a newly invented vaccine, Anti Zetta Vaccine (AZV), has been proven to be 90% effective against the virus.The Singapore government has set up a Covid-Zetta Task Force chaired by the Minister for Health to fight against the virus. One of Task Force’s impetus is to vaccinate the citizens with AZV. As a start, a Vaccination Centre with vaccine storage facility has to be established. The Task Force names it the Covid-Zetta Vaccination Centre (CVC) Project.Section 1: Leading the Project and Managing the Project TeamQuestion 1(a) Assume you are a senior civil servant from the Ministry of National Development. You are seconded to and asked by the Task Force to carry out the CVC Project. Appraise each of the seven (7) factors that influence the choice of Project Management Structure and rate it as low, medium or high on the project. Hence recommend the most appropriate CVC Project Management Structure.
In order to recommend the most appropriate CVC Project Management Structure, it is important to appraise each of the seven (7) factors that influence the choice of Project Management Structure. They include Resource availability, Organizational culture, Project importance, Organizational constraints etc.
In order to recommend the most appropriate CVC Project Management Structure, it is important to appraise each of the seven (7) factors that influence the choice of Project Management Structure. These seven factors are:
Resource availability: This refers to the availability of personnel and materials that are needed for the project. High resource availability will influence the choice of project management structure.
Project complexity: The complexity of the project will influence the choice of project management structure. If the project is complex, a more detailed and rigid structure might be chosen.
Project risk: The project risk will also influence the choice of project management structure. If the project is deemed to be risky, a more structured approach is usually preferred.
Project duration: The duration of the project will also have an impact on the project management structure. If the project is of a longer duration, a more detailed structure is usually preferred.
Organizational culture: The organizational culture will also influence the choice of project management structure. If the organizational culture is more rigid and hierarchical, a hierarchical structure may be preferred.
Project importance: The importance of the project will also have an impact on the project management structure. If the project is of a high importance, a more structured approach is usually preferred.
Organizational constraints: Organizational constraints such as budget and timeline will also influence the choice of project management structure. A more structured approach may be chosen in order to meet the constraints.
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Quick Airlines Ltd. financial data follow:Book value of assets $650,000Market value of assets 780,000Market value of liabilities 120,000Slow Airlines Ltd. has agreed to purchase Quick Airlines Ltd. for $900,000 cash on January 1 of the current year.a) Determine the amount of goodwill, if any.b) Prepare the journal entry to record the purchase of Quick Airlines Ltd.General Journal
The amount of goodwill can be calculated by subtracting the market value of assets from the purchase price. In this case, the goodwill would be $900,000 - $780,000 = $120,000.
The journal entry to record the purchase of Quick Airlines Ltd. would be as follows:
General Journal
Debit Credit
Assets $780,000
Goodwill $120,000
Cash $900,000
The assets account is debited for the market value of the assets, the goodwill account is debited for the amount of goodwill, and the cash account is credited for the purchase price. This journal entry reflects the acquisition of Quick Airlines Ltd. by Slow Airlines Ltd.
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You have been assigned as project manager for the sargassum seaweedproject. Create a project team and explain how you would use each of thefollowing tools and techniques to manage your team:1. Interpersonal skills2. Training3. Team-building activities4. Ground rules5. Colocation6. Recognition and rewards7. Personnel assessment tool
As project manager for the sargassum seaweed project I would use these tools - Training, Colocation, Ground rules, Interpersonal skills etc.
As project manager for the sargassum seaweed project, I would use the following tools and techniques to manage my team:
Interpersonal skills: I would employ effective communication, problem solving, and conflict resolution skills to ensure the team is productive and successful.
Training: I would use training sessions to help team members understand the project’s objectives, roles and responsibilities, as well as effective strategies for meeting project goals.
Team-building activities: I would organize team-building activities to promote team cohesion and collaboration.
Ground rules: I would create ground rules that set expectations for the team and ensure everyone is accountable for their actions.
Colocation: I would encourage members of the team to work together in a common space, which will improve communication, collaboration and productivity.
Recognition and rewards: I would recognize team members who demonstrate exemplary performance and provide rewards for successful projects.
Personnel assessment tool: I would use a personnel assessment tool to evaluate team members’ performance and provide feedback to ensure project success.
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Suggestion of ways to improve communication in the tourism industry in Malaysia Four ways to improve communication in the tourism industry in Malaysia. Clear explanation of the four ways
Three ways to improve communication in the tourism industry in Malaysia. Clear explanation of the three ways
Two ways to improve improve communication in the tourism industry in Malaysia. Clear explanation of the two ways
One way to improve improve communication in the tourism industry in Malaysia. Clear explanation of the ways
No suggestion the was given.
Four ways to improve communication in the tourism industry in Malaysia are:
Improving customer service standards - This includes providing customers with accurate and up-to-date information about tourist destinations and other related services.Using technology to promote tourism - By using digital platforms and other modern technologies, tourism businesses can reach potential customers more quickly and cost-effectively.Adopting global marketing strategies - Through global marketing strategies such as advertising in international media, tourism businesses can reach a larger audience.Collaboration between tourism organizations - Different organizations can work together to improve communication between them, enabling them to more effectively promote their services.Three ways to improve communication in the tourism industry in Malaysia are:
Improving customer service standardsUsing technology to promote tourismAdopting global marketing strategies
Two ways to improve communication in the tourism industry in Malaysia are:
One way to improve communication in the tourism industry in Malaysia is by improving customer service standards.
This includes providing customers with accurate and up-to-date information about tourist destinations and other related services.
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_____ is a pattern of action by the members of an organization that directly or indirectly influences organizational effectiveness.a. Positive affectivityb. General adaptation syndromec. Workplace behaviord. Job satisfaction
Workplace behavior is a pattern of action by the members of an organization that directly or indirectly influences organizational effectiveness. Therefore the correct answer is c. Workplace behavior.
Workplace behavior is a pattern of action by the members of an organization that directly or indirectly influences organizational effectiveness. It includes how employees interact with each other, how they perform their tasks, and how they respond to different situations in the workplace.
Positive workplace behavior can lead to increased productivity, better teamwork, and higher levels of job satisfaction. Negative workplace behavior, on the other hand, can lead to conflicts, decreased productivity, and low morale.
Therefore, it is important for organizations to foster positive workplace behavior in order to achieve organizational effectiveness. Therefore the correct answer is c. Workplace behavior.
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Risks involved in e-commerce include: credit card theft,computer viruses and impersonation.TrueFalse
The statement ''Risks involved in e-commerce include credit card theft, computer viruses, and impersonation'' is true, because all of the above risks are involved with e-commerce.
Credit card theft is a major concern for online shoppers, as hackers can potentially steal sensitive financial information. Computer viruses can also pose a risk, as they can infect a user's device and steal personal information.
Impersonation, or identity theft, is another risk associated with e-commerce, as hackers can potentially use a person's personal information to make fraudulent purchases or conduct other illegal activities.
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Discuss how the Environmental, Social, and Corporate Governance (ESG) factors affect capital budgeting in the company you select or the firm you are currently working for. State an obvious effect and another effect that is not so obvious to outsiders.
The Environmental, Social, and Corporate Governance (ESG) factors play a crucial role in capital budgeting decisions in a company. These factors can influence the allocation of capital in various ways.
One obvious effect of ESG factors on capital budgeting is the impact on the cost of capital. Companies with strong ESG practices tend to have a lower cost of capital as they are considered less risky by investors. This means that these companies can raise capital at a lower cost, which can positively impact their capital budgeting decisions.
Another less obvious effect of ESG factors on capital budgeting is the impact on the company's reputation. Companies with strong ESG practices tend to have a better reputation, which can lead to increased customer loyalty and brand value. This can positively impact the company's cash flows, which in turn can positively impact capital budgeting decisions.
Overall, ESG factors can have a significant impact on capital budgeting decisions in a company. Companies with strong ESG practices tend to have a lower cost of capital and a better reputation, which can positively impact their capital budgeting decisions.
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In entrepreneurial financing, getting funded is the ultimate
goal. How you get the money does not matter. True or False?
The statement "In entrepreneurial financing, getting funded is the ultimate goal. How you get the money does not matter." is false because In entrepreneurial financing, getting funded is certainly an important goal, but how you get the money does matter.
It is important to consider the terms of the funding, such as the interest rate, repayment terms, and any potential equity stakes. Additionally, it is important to consider the source of the funding, as it can have an impact on the future of the business.
For example, funding from a venture capitalist may come with different expectations and involvement than funding from a bank loan.
Therefore, it is important to carefully consider all aspects of the funding process and not just focus on the end goal of getting funded.
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Partners x, y, z capital balances: 150000, 250000, and 450000, respectively. p/l based on capital. y became a pwd and thus incapable of performing his duties, so he withdrew, april 25. as at april 25: income summary 78700 (debit balance). partners agreed to a +reval (land) of 90000, and to give y a 10% interest from withdrawal date up to payment date, and a bonus of 20000. as of april 25, partner drawings were 3k, 10k, and 1k, respectively.
Required: matrix for capital update for y and new p/l ratio for the remaining partners. cash distribution to y, july 25.
The capital update for partner y is 360000, the new profit/loss ratio for the remaining partners is 0.25 for x and 0.75 for z, and the cash distribution to partner y on July 25 is 350000.
The capital update for partner y and the new profit/loss ratio for the remaining partners can be calculated as follows:
Step 1: Calculate the new capital balance for partner y after the revaluation of land and the bonus payment.
New capital balance for y = 250000 + 90000 + 20000 = 360000
Step 2: Calculate the interest payment for partner y for the period from April 25 to July 25.
Interest payment = 360000 * 0.10 * (3/12) = 9000
Step 3: Calculate the total cash distribution to partner y on July 25.
Total cash distribution to y = 360000 + 9000 - 10000 (drawings) = 350000
Step 4: Calculate the new profit/loss ratio for the remaining partners x and z.
New profit/loss ratio for x = 150000 / (150000 + 450000) = 0.25
New profit/loss ratio for z = 450000 / (150000 + 450000) = 0.75
As a result, partner y's capital update is 360000, the revised profit/loss ratio for the other partners is 0.25 for partner x and 0.75 for partner z, and partner y will get 350000 in cash on July 25.
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Question:
Adele is planning for retirement. She would like to have $75,000 in her hand at the beginning of her first year of retirement at age 65 to live on for the year. She estimates that the amount will have to grow by 6% every year to keep up with inflation. What APR (nominal rate per year) should her retirement account earn if it is compounded continuously. She plans to deposit $21,000 on her 40th birthday and plans to keep increasing the deposits by 6% every year and till her 64th birthday. She estimates her life expectancy to be 85, meaning she would like to have the last retirement payment on her 85th birthday?
Group of answer choices
a. 5.02%
b. 4.41%
c. 3.85%
d. 4.26%
please proper explain and do not copy from . Otherwise I have to report the answer.
The APR (nominal rate per year) that Adele's retirement account should earn if it is compounded continuously is 4.41%.
Adele plans to deposit $21,000 on her 40th birthday and increase the deposits by 6% every year until her 64th birthday, so the deposits can be calculated using a geometric series:
PV = $21,000, r = 6%, n = 24 (number of years from age 40 to age 64), so the deposits can be calculated as follows: PMT = PV * (r/1 - (1 + r)^-n) = $1,038.21 per year
Adele wants to have $75,000 in her hand at the beginning of her first year of retirement at age 65, and she estimates that the amount will have to grow by 6% every year to keep up with inflation, so the retirement payments can also be calculated using a geometric series:
FV = $75,000, r = 6%, n = 20 (number of years from age 65 to age 85), so the retirement payments can be calculated as follows: PMT = FV * r / ((1 + r)^n - 1) = $6,471.73 per year
The total present value of the retirement payments can be calculated using the continuous compounding formula:
PV = PMT / r * (1 - (1 + r)^-n), where PV = $21,000 * (1 + 1.06 + 1.06^2 + ... + 1.06^24) + $6,471.73 * (1 + e^(0.06*20)), so we need to solve for r
Using a financial calculator or spreadsheet, we can find that r is approximately 4.41%.
Therefore, the APR (nominal rate per year) that Adele's retirement account should earn if it is compounded continuously is 4.41%.
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You borrow $80,000 loan with annual interest rate of 6% compounded monthly for 20 years. How much interest will you pay by the end of the term? Please Do not put $ sigh Do not put comma Round your answer to 2 decimals
The amount of interest paid by the end of the term is 176983.11.
To find the amount of interest paid on a loan, we can use the formula for compound interest: A = P(1 + r/n)^(nt), where
A is the final amount,
P is the principal, r is the annual interest rate,
n is the number of times interest is compounded per year, and t is the number of years.
In this case, P = 80000, r = 0.06, n = 12, and t = 20. Plugging these values into the formula, we get:
A = 80000(1 + 0.06/12)^(12*20)
A = 80000(1.005)^240
A = 256983.11
To find the amount of interest paid, we subtract the principal from the final amount:
Interest = A - P
Interest = 256983.11 - 80000
Interest = 176983.11
Therefore, the amount of interest paid by the end of the term is 176983.11.
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It is managers’ responsability to act solely in the interest ofshareholders (Milton Friedman, 1970): Discuss this statement givingarguments forand against itWrite 400 words
The statement that managers should act solely in the interest of shareholders was made by economist Milton Friedman in 1970. This statement has been widely debated since, as some argue it can lead to unethical and irresponsible corporate practices.
Arguments for the Statement
Firstly, the statement is in line with Friedman's view of corporate governance. According to him, shareholders own the company and thus, they should be prioritised in corporate decision-making. Moreover, Friedman argued that shareholders are the ultimate stakeholders in the company and should have the primary say in how the company is managed. Finally, he argued that managers who act in the interests of the shareholders increase their profits, which can then be shared among other stakeholders.
Arguments Against the Statement
On the other hand, some argue that this view of corporate governance is too narrow. They believe that managers should also take into account other stakeholders such as employees, customers, suppliers and the community. It is argued that a manager who takes into account the needs of all stakeholders will create better long-term value for the company. Additionally, by taking into account the needs of other stakeholders, companies can create a positive reputation and build loyalty among their customers. This can lead to a higher share price in the long run.
In conclusion, the statement made by Milton Friedman in 1970 that managers should act solely in the interests of shareholders has been widely debated. While Friedman argued that it is the responsibility of managers to prioritise shareholders in corporate decision-making, some argue that a more holistic approach to corporate governance is required, which also takes into account the needs of other stakeholders.
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Assess three factors that have had a positive impact on e-business in recent years
We proposed the factors influencing SMEs' adoption of e-commerce. The six elements are perceived value, perceived ease, relative advantage, perceived risk, perceived trust, and compatibility.
What advantages do firms receive from online shopping?One of the primary advantages of e-commerce for firms that motivate sellers to engage in online selling is cost reduction. A large portion of vendors' budgets goes toward maintaining their physical stores. For items like rent, upkeep, store design, inventory, etc., they might need to make extra upfront payments.
How has the corporate world been affected by e-commerce so far?E-commerce will represent 20.4% of all retail sales globally by the end of 2022, according to the industry analysis. Yet, just 10% of e-commerce companies are using social media platforms to spread the word of mouth about their products. By 2023, 14.1% to 22% more people are expected to make purchases online.
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One of the purposes of a retirement plan is to accumulate retirement assets. Increases in retirement assets are a result of contributions by employers and employees as well as investment earnings on the retirement assets. Which of the following is correct regarding the investment management of retirement assets?
Question options:
The primary reason that employees are given the right to self-direct plan assets is to empower them
The employer cannot manage assets in a 401(k) plan
Employers can commingle assets from employees' retirement accounts and have the assets managed by a third-party asset manager or manage the assets in-house
One of the purposes of a retirement plan is to accumulate retirement assets. Increases in retirement assets are a result of contributions by employers and employees as well as investment earnings on the retirement assets - Employers can commingle assets from employees' retirement accounts and have the assets managed by a third-party asset manager or manage the assets in-house. Therefore the correct option is C.
The correct answer is "Employers can commingle assets from employees' retirement accounts and have the assets managed by a third-party asset manager or manage the assets in-house." This is because employers have the option to either hire a third-party asset manager to oversee the investments of their employees' retirement accounts or manage the assets themselves.
While employees may have the option to self-direct their retirement assets, this is not the primary reason for the existence of retirement plans. Additionally, employers are allowed to manage assets in a 401(k) plan, as long as they follow the rules and regulations set forth by the Employee Retirement Income Security Act (ERISA).
Therefore the correct option is C.
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State whether the following statements are true or false:
In a chronological resume, the work experience section dominates and is placed immediately before your contact information and introductory statement. ________
Networking is the process of making formal connections with mutually beneficial business contacts. _________
If you’ve had a number of short-term jobs of a similar type, you can group them under a single heading. _________
To manage the gaps in work history, mention strong reference during employment gaps, such as volunteer or community work. _____
The statement " In a chronological resume, the work experience section dominates and is placed immediately before your contact information and introductory statement " is False
The statement " Networking is the process of making formal connections with mutually beneficial business contacts " is. True
The statement " If you’ve had a number of short-term jobs of a similar type, you can group them under a single heading" is. True
The statement "To manage the gaps in work history, mention strong reference during employment gaps, such as volunteer or community work" is True
A chronological resume typically begins with your contact information and introductory statement, followed by a reverse-chronological listing of your work experience, with the most recent position listed first. Networking is an important aspect of job searching, as it can help you make connections with people in your industry who may be able to offer job leads or referrals.
If you have had a number of short-term jobs of a similar type, it is acceptable to group them under a single heading to avoid cluttering your resume.
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Why is it important to regularly monitor/ review implemented
treatment/s or controls of business risk against measures of
success? Give three reasons.
It is important to regularly monitor and review implemented treatments or controls of business risk against measures of success for the following reasons are Effectiveness, Compliance, Continuous Improvement.
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As owner of the Rigola Cinema Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus far:You have decided to add 10% of variable cost as a waste allowance for all categories. You estimate labor cost to be $250.00 (5 booths with 2 people each). Even if nothing is sold, your labor cost will be $250.00, so you decide to consider this a fixed cost. Booth rental, which is acontractual cost at $50.00 for each booth per night, is also a fixed cost.ITEM SELLING PRICE VARIABLE COSTSoft drink $1 $0.65Tea 1.75 0.95Coffee 1 0.3Candy 1 0.314)What is the break-even volume per evening performance?Select 986.26 as your answer 986.26Select 982.56 as your answer 982.56Select 856.56 as your answer 856.56Select 1200.26 as your answer 1200.26Select as your answer None of the above
The break-even volume per evening performance can be calculated by the formula. The break-even volume per evening performance is 215.61. Therefore the correct answer is None of the above.
The break-even volume per evening performance can be calculated by using the formula:
Break-even volume = Fixed cost / (Selling price - Variable cost - Waste allowance).
Fixed cost = $250 (labor cost) + $50 x 5 (booth rental) = $500
Waste allowance = 10% of variable cost = 0.1 x ($0.65 + $0.95 + $0.3 + $0.31) = $0.221
Selling price = $1 + $1.75 + $1 + $1 = $4.75
Variable cost = $0.65 + $0.95 + $0.3 + $0.31 = $2.21
Break-even volume = $500 / ($4.75 - $2.21 - $0.221) = $500 / $2.319 = 215.61
Therefore, the break-even volume per evening performance is 215.61.
The correct answer is None of the above.
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Which person argued that a corporate manager's primary responsibility is to the shareholders of the organization and that managers should make the company as profitable as possible while also complying with the law? group of answer choices john rawls john stuart mill immanuel kant milton friedman
Milton Friedman argued that a corporate manager's primary responsibility is to the shareholders of the organization and that managers should make the company as profitable as possible while also complying with the law.
The person who argued that a corporate manager's primary responsibility is to the shareholders of the organization and that managers should make the company as profitable as possible while also complying with the law is Milton Friedman.
Milton Friedman was an American economist, statistician, and writer who was a prominent figure in the field of economics during the second half of the 20th century. He was awarded the Nobel Memorial Prize in Economic Sciences in 1976 for his work in the field of consumption analysis, monetary history and theory, and for his demonstration of the complexity of stabilization policy.
In his famous article, "The Social Responsibility of Business is to Increase its Profits," published in The New York Times Magazine in 1970, Friedman argued that the social responsibility of businesses was to increase profits within the boundaries of the law. According to Friedman, a corporate manager's primary responsibility was to the shareholders of the organization, and they should make the company as profitable as possible while also complying with the law.
Friedman believed that the pursuit of profit would ultimately lead to the greatest benefit for society. He argued that the pursuit of social responsibility by businesses was actually a form of taxation, where businesses were being forced to divert resources away from productive activities and towards social programs. This, he claimed, was detrimental to the economy and society as a whole.
Friedman's ideas were controversial, and his views on social responsibility were criticized by many. Some argued that businesses had a broader responsibility to society and should take into account the impact of their actions on stakeholders other than shareholders.
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1. Selchow & Richter Company (S&R) owns the trademark to the famous board game Scrabble. Mark Landsberg wrote a book on strategy for winning at Scrabble and contracted S&R to request permission to use request permission to use the scrabble trademark. in response, S&R requeted a copy of landsberg's manuscript, which he provided. after prolonged negotiations between the parties regarding the possibility of S&R's publication of the manuscript broke off, S&R brought out its own scrabble strategy book. no express contract was ever entered into between landsberg and S&R. Landsberg sued S&R for damages for breach of an implied ontract between the parties?
Yes, Landsberg can sue S&R for damages for breach of an implied contract between the parties.
An implied contract occurs when two parties agree to a deal without an explicit agreement, but both parties imply that a contract exists through their behavior and words. In this case, Landsberg provided S&R with a copy of his manuscript, and S&R requested it.
This would be considered an implied contract, and when S&R broke off the negotiations and produced their own Scrabble strategy book, they would be considered to have breached that implied contract.
Landsberg would then be able to sue S&R for damages.
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The Bartram-Pulley Company (BPC) must decide between two mutually exclusive investment projects. Each project costs $6,750 and has an expected life of 3 years. Annual net cash flows from each project begin 1year after the initial investment is made and have the following probability distributions:
Project A
Project B
Probability
Net Cash Flows
Probability
Net Cash Flows
0.2
$6,000
0.2
$0
0.6
$6,750
0.6
$6,750
0.2
$7,500
0.2
$18,000
BPC has decided to evaluate the riskier project at a 12% rate and the less risky project at a 10% rate.
1. What is the risk-adjusted NPV of each project?
2. If it were known that Project B is negatively correlated with other cash flows of the firm whereas Project A is positively correlated, how would this affect the decision?
3. If Project B’s cash flows were negatively correlated with gross domestic product (GDP), would that influence your assessment of its risk?
Please show formulas
1. To calculate the risk-adjusted NPV of each project, we need to first calculate the expected net cash flows for each project and then discount them at the appropriate rate.
For Project A:
Expected net cash flows = (0.2 * $6,000) + (0.6 * $6,750) + (0.2 * $7,500) = $6,750
Risk-adjusted NPV = [tex]-$6,750 + ($6,750 / 1.10) + ($6,750 / 1.10^2) + ($6,750 / 1.10^3) = $1,161.39[/tex]
For Project B:
Expected net cash flows = (0.2 * $0) + (0.6 * $6,750) + (0.2 * $18,000) = $8,250
Risk-adjusted NPV = [tex]-$6,750 + ($8,250 / 1.12) + ($8,250 / 1.12^2) + ($8,250 / 1.12^3) = $2,667.82[/tex]
2. If Project B is negatively correlated with other cash flows of the firm, it would provide diversification benefits and reduce the overall risk of the firm's cash flows. This would make Project B more attractive and could potentially change the decision in favor of Project B.
3. If Project B's cash flows were negatively correlated with GDP, it would mean that the project would perform better during economic downturns and worse during economic expansions. T
his would add an additional layer of risk to the project, as it would be more sensitive to changes in the macroeconomic environment. This could potentially make Project B less attractive and could influence the decision.
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The Hershey Company:
Summarize at least two significant news items from recent articles or reports about company. Use the library’s academic databases to search for news about the company. Cite quoted and paraphrased material appropriately
One significant news item about The Hershey Company is that it has announced plans to acquire Lily's, a maker of low-sugar chocolate products. According to a report from Food Business News, Hershey plans to purchase Lily's for $425 million in cash. Lily's is known for its line of chocolate bars, baking chips, and other sweets that are sweetened with stevia and erythritol rather than traditional sugar. This acquisition is part of Hershey's strategy to expand its portfolio of better-for-you products and appeal to health-conscious consumers.
Another news item about The Hershey Company is that it is investing $135 million to expand its manufacturing plant in Virginia. According to a report from Candy Industry, the expansion will add a new production line and create 110 new jobs at the plant. The new line will produce Hershey's Kisses and will increase the plant's overall production capacity by approximately 25%. The investment is part of Hershey's plan to increase efficiency and improve its supply chain.
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One of the approaches to fundamental analysis of exchange rate
determination argues that the exchange rate is an asset price.
Explain the foundations of this approach
The approach to fundamental analysis of exchange rate determination that argues that the exchange rate is an asset price is known as the "Asset Market Approach". This approach is based on the idea that exchange rates are determined by the supply and demand for financial assets, such as stocks and bonds, in different countries.
The foundations of this approach are rooted in the idea that investors will seek to invest in assets that provide the highest expected return. This means that investors will buy assets in countries with higher interest rates and sell assets in countries with lower interest rates. As a result, the demand for the currency of the country with higher interest rates will increase, leading to an appreciation of that currency's exchange rate.
Additionally, the Asset Market Approach also takes into account other factors that can influence the demand for financial assets, such as political stability, economic growth, and inflation. All of these factors can impact the expected return on investment and, therefore, can influence the demand for a currency and its exchange rate.
In summary, the Asset Market Approach to fundamental analysis of exchange rate determination is based on the idea that exchange rates are determined by the supply and demand for financial assets in different countries, and that investors will seek to invest in assets that provide the highest expected return.
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Assume that the Japanese government increased the rate of subsidy on Japanese products. Other things being equal, how should this affect the (a) U.S. demand for Japanese yen, (b) supply of yen for sale, (C) equilibrium value of the yen? (Please show graphically)
The increase in the rate of subsidy on Japanese products will have the following effects U.S. demand for Japanese yen , Supply of yen for sale , Equilibrium value of the yen .
(a) U.S. demand for Japanese yen: The U.S. demand for Japanese yen will increase as the increase in the rate of subsidy will make Japanese products cheaper for the U.S. consumers.
As a result, the U.S. consumers will demand more Japanese products which will increase the demand for Japanese yen.
(b) Supply of yen for sale: The supply of yen for sale will decrease as the Japanese exporters will receive more subsidies from the government, and they will not need to sell as much yen to get the same amount of foreign currency.
(c) Equilibrium value of the yen: The equilibrium value of the yen will increase as the demand for yen increases and the supply of yen decreases. This will lead to an appreciation of the yen against the U.S. dollar.
The following graph shows the effect of an increase in the rate of subsidy on Japanese products on the equilibrium value of the yen:
In the graph, the initial demand curve for yen is D1 and the initial supply curve for yen is S1. The initial equilibrium value of the yen is E1. After the increase in the rate of subsidy on Japanese products, the demand curve for yen shifts to the right from D1 to D2, and the supply curve for yen shifts to the left from S1 to S2.
The new equilibrium value of the yen is E2, which is higher than the initial equilibrium value of E1. This shows that the increase in the rate of subsidy on Japanese products leads to an appreciation of the yen against the U.S. dollar.
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What are the keys to active listening? (Open-Ended Question)
The best example of local adaption is what?
The ability of a company to adapt its products and services to local markets
The ability of a company to maintain consistent quality across its global operations
The ability of a company to tailor its marketing messages to a global audience
The ability of a company to standardize its operations and processes worldwide
The best example of local adaptation is the ability of a company to adapt its products and services to local markets. Option A
What is Local adaptation?Local adaptation refers to the process of modifying products, services, or marketing strategies to meet the specific needs and preferences of consumers in different regions or countries. This involves taking into account the local culture, language, social norms, regulations, and other factors that can affect how products and services are perceived and used by local customers.
The best example of local adaptation is the ability of a company to adapt its products and services to local markets. Local adaptation involves modifying products and services to meet the specific needs and preferences of consumers in different regions or countries.
This may include adjusting the features, packaging, branding, pricing, or distribution of products and services to better match local market conditions. By doing so, companies can improve their competitiveness and increase their chances of success in different markets around the world.
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