Answer:
The answer is loss of $7
Explanation:
For the buyer of call profit (long) =
Max[0,(St -Sx)] - P
where St is the underlying price of the security
Sx is the excercise price
P is the premium price paid
Max [0, ($123 - $120)] - $10 =
$3 - $10
Loss of $7
When an analyst is looking at a company for the first time, which of the following four activities does he do first?
a) defines the industries in which the company operates
b) sizes the market in which the company sells
c) Calculates the companys market share
d) estimates the breakdown of the companys cost base
Answer:
a) defines the industries in which the company operates
Explanation:
In the case when the analyst begins to analyze the company so the first thing he see the industry how it operates whether it is understanble or not after that the growth should be potential or not
So here the option a is correct as it describe the industries in which the company would operates
So the same is to be considered for the first time
If production in the economy is efficient, then changes in market prices:___________
Answer: d.Move us along the perimeter of the PPC
Explanation:
The Production Possibilities Curve (PPC) is used to demonstrate the concept of scarcity and trade-offs by showing different combinations of output of two goods give certain resources.
As the goods use the same resources, increasing the output of one good reduces the output of the other. The PPC therefore shows the optimal level of resource utilization. If production is efficient, it will follow this optimal level by moving along the perimeter of the PPC.
Select the true statement about the relationship between law, ethics, and business.
a. Ethical business practices and conduct have value only to the owners and managers of a business.
b. Ethical business practices and conduct generate goodwill that can be measured in the monetary value of a business.
c. Ethical business practices and conduct increase employee and customer satisfaction, but do not affect a business' bottom line.
d. Ethical business practices and conduct are more important to the short-term success of a business than the long-term.
Answer:
B
Explanation:
Ethical business practices generates goodwill. For example, if a firm is known to be ethical, individuals would be interested in doing business with them as a result of this. This can create goodwill when the ethical firm is sold
Ethical business practices benefits customers, owners and managers. It is also important for the long term success of the firm.
After the patent runs out on a brand name drug, generic drugs enter the market. What happens next in the market? a. Price decreases, and total surplus decreases. b. Price increases, and total surplus increases. c. Price increases, and total surplus decreases. d. Price decreases, and total surplus increases.
Answer:
d. Price decreases, and total surplus increases.
Explanation:
In the case when the patent runs the name of the brand i.e. drug, and the generic drugs entered into the market so here the price would be reduced and on the other hand the total surplus i.e. consumer and producer would rise.
Therefore as per the given situation, the option d is correct
hence, all the other options are incorrect
Zoom sales last year were $435,000, its operating costs including Depreciation were $362,500, and its interest charges were $12,500. What was the firm's times-interest-earned (TIE) ratio?
Answer:
374,000
Explanation:
because 362,500 plus 4,000 equals 364,500 add the last 10,000 and you have 374,500 add the 500 and now you have 375k
The firm's Times-interest earned ratio will be 5.8 times. This can be obtained from the formula of TIE ratio after necessary calculation involving earnings before interest, taxes, depreciation and appreciation.
In the example given above all the value are calculated and found the answers as EBITDA comes down to $72500. Whereas the interest charges are given- $12500.
The formula to calculate the TIE ratio of zoom is as follows.
[tex]Times\ Interest\ Earned=\dfrac{\rm{EBITDA}}{\rm{interest\ charges}}[/tex]
By putting the values in the above formula we get values as 72500 / 12500
[tex]Times\ interest\ earned=\dfrac{\rm{435000-362500}}{\rm{12500}}\\\\\\Times\ Interest\ earned = \dfrac{72500}{12500}[/tex]
Hence the times interest earned comes down to 5.8 times.
The correct solution will be 5.8 times the interest has been earned above the charges actually born.
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The doctrine that allows for a more flexible use of copyrighted material such as for educational purposes is known as _____.
Answer:
where are the options for these questions
g sales on account 2,100,000 cash sales 1,110,000 cost of goods sold 1,575,000 What is the amount of cash payments to suppliers reported by one company
Answer:
$1,464,000
Explanation:
Note: The complete question set is attached as picture below
To determine the amount of cash payments to suppliers:
Particulars Amount
Cost of goods sold $1,575,000
Increase in inventory $72,000
Decrease in accounts payable -$183,000
Payment made to suppliers $1,464,000
Therefore, the amount of cash payments to suppliers is $1,464,000.
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information is available for the current period: Office Expenses Total Allocation Basis Salaries $ 45,000 Number of employees Depreciation 31,000 Cost of goods sold Advertising 65,000 Net sales Item Drilling Grinding Total Number of employees 1,000 1,500 2,500 Net sales $ 376,000 $ 564,000 $ 940,000 Cost of goods sold $ 129,200 $ 210,800 $ 340,000 The amount of the total office expenses that should be allocated to Drilling for the current period is: _________
a) $55,780.
b) $84,200.
c) $93,200.
d) $141,000.
e) $600,000.
Answer:
The correct answer is A.
Explanation:
Giving the following information:
Item Drilling Grinding Total
Number of employees 1,000 1,500 2,500
Net sales $ 376,000 $ 564,000 $ 940,000
Cost of goods sold $ 129,200 $ 210,800 $ 340,000
First, we need to calculate the predetermined overhead rate for each office expense:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Salaries= 45,000/2,500= $18 per employee
Depreciation= 31,000/340,000= $0.091 per COGS
Advertising= 65,000/940,000= $0.069 per net sale
Now, we can allocate costs to Drilling:
Salaries= 18*1,000= $18,000
Depreciation= 0.091*129,200= $11,757.2
Advertising= 0.069*376,000= $25,944
Total allocated office costs= $55,701.2
An economy consists of three workers: Brian, Edison, and Kevin. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Brian can either mow 2 lawns or wash 1 car; Edison can either mow 1 lawn or wash 1 car; and Kevin can either mow 1 lawn or wash 2 cars.
For each of the scenarios listed below, determine how many lawns will be mowed and how many cars will be washed per day.
a. All three spend all their time mowing lawns. (A)
b. All three spend all their time washing cars. (B)
c. All three spend half their time on each activity. (C)
d. Tim spends half his time on each activity, while Brian only washes cars and Edison only mows lawns. (D)
Answer:
Brian can mow 2 lawns or wash 1 car in an hour. Edison can do one of each and Kevin can mow 1 lawn or wash 2 cars.
a. All three send their time mowing lawns:
= (2 * 10) + (1 * 10) + (1 * 10)
= 40 lawns
No cars washed.
b. All three spend all their time washing cars.
No lawns.
Cars washed = (1 * 10) + (1 * 10) + (2 * 10)
= 40 cars washed
c. All three spend half their time on each activity.
Half their time = 5 hours.
Lawns mowed = (2 * 5) + (1 * 5) + (1 * 5)
= 20 lawns mowed
Cars washed = (1 * 5) + (1 * 5) + (2 * 5)
= 20 cars washed
d. Kevin spends half his time on each activity, while Brian only washes cars and Edison only mows lawns. (D)
Lawns mowed = (1 * 5) + (1 * 10)
= 15 lawns mowed
Cars washed = (2 * 5) + (1 * 10)
= 20 cars washed
Clayborn Company' bank reconciliation as of May 31 is shown below.
Bank balance $ 15,800 Book balance $ 17,025
+ Deposit in transit 5,200 Bank service fees −25
− Outstanding checks −4,600 NSF returned −600
Adjusted bank balance $16,400 Adjusted book balance $ 16,400
One of the adjusting journal entries that Clayborn must record as a result of the bank reconciliation includes:
a) A debit to cash of $25
b) A debit to Cash of $625
c) A debit to Cash of $5,200
d) A credit to Cash of $600
e) A credit to Cash of $4,600
Answer:
d) A credit to Cash of $600
Explanation:
The adjusting journal entries are shown below:
Bank service fees expense $25
To Cash $25
(Being bank service charge expensed)
Here the expenses is debited as it increased the expenses and credited the cash as it decreased the asset
Accounts Receivable $600
To Cash $600
(Being NSF returned is recorded)
Here the account receivable is debited as it increased the assets and credited the cash as it decreased the asset
So option d is correct
The practice of setting prices deliberately below ________ costs in an effort to drive a competitor out of the market is known as predatory pricing.
Answer:
c. average variable
Explanation:
The options for the question are;
. a) marginal
b. average total
c. average variable
d. average fixed
Predatory pricing can be regarded as
pricing strategy which is an illegal act whereby dominant firm in an particular industry set their price low so that compitition can be eliminated, this act usually aid Monopoly in the market. It should be noted that The practice of setting prices deliberately below average variable costs in an effort to drive a competitor out of the market is known as predatory pricing.
Journalize the following entries on the books of Winston Co. for August 1, September 1, and November 30. (Assume a 360-day year is used for interest calculations.)
Aug. 1 Winston Co. purchased merchandise for $75,000 on account from Bagley Co., terms n/30.
Sept. 1 Winston Co. issued a 90-day, 6% note for $75,000 on account.
Nov. 30 Winston Co. paid the amount due.
Answer: PLease see explanation for answers
Explanation:
Journal to record Purchase of Inventory
Date Account Title Debit Credit
Aug.1 Merchandise Inventory $75,000
Bagley Co. $75,000
To record Issue of Note
Sep 1 Bagley Co. $75,000
6% Note Payable $75,000
To Record Payment of Note at due date
Nov 30 6% Note Payable $75,000
Interest Expenses $1,125
Cash $76,125
Calculation
Interest expense = Principal x rate x Time
= $75,000 x 60 x 90/360
=$1,125
This year Don and his son purchased real estate for an investment. The price of the property was $546,000, and the title named Don and his son as joint tenants with the right of survivorship. Don provided $330,000 of the purchase price and his son provided the remaining $216,000. Has Done made a taxable gift and, if so, in what amount
Answer and Explanation:
The computation is shown below:
As the price of the property is $546,000 which is purchased by don and his son
So individually they paid an amount of
= $546,000 ÷ 2
= $273,000
Now the amount paid by Don is $330,000
And, his son paid $216,000
As it can be seen that amount paid by don is more than the 50% of the property value so this represents that this is a taxable gift to his son
Now the gift in the don hands would be
= $330,000 - $216,000
= $114,000
The $15,000 would not be taxable
So, the taxable gift would be
= $114,000 - $15,000
= $99,000
Isabella moved from Spain to the United States in 2019. She worked and filed a Form 1040 reporting her income. She received a letter requesting more information, but unfortunately she does not understand the letter. What form or schedule should she use to request information in Spanish
Answer:
Schedule 3911
Explanation:
Since in the question it is mentioned that isabella shifted from spain to the united states in the year 2019. She worked and filed form no 1040 for reporting her income. Now she received a letter regarding more information but she is not able to understand the letter so in order to request the information in spanish she use the schedule 3911. It is a statement that shows the refund status
So, the same is relevant
Alvin's Transport has total credit sales for the year of $182,000 and estimates that 3% of its credit sales will be uncollectible. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated bad debt expense. Assume the following independent conditions existed prior to the adjustment:
a. Allowance for Doubtful Accounts has a credit balance of $570.
b. Allowance for Doubtful Accounts has a debit balance of $360
Answer:
S/n Account Title and Explanation Debit Credit
a. Bad Debt Expense $5,460
($182,000 sales x 3%)
Allowance for Doubtful Accounts $5,460
(To record bad debt expense)
b. Bad Debt Expense $5,460
($182,000 sales x 3%)
Allowance for Doubtful Accounts $5,460
(To record bad debt expense)
An investor borrows an amount at an annual effective interest rate of 5% and will repay all interest and principal in a lump sum at the end of 10 years. She uses the amount borrowed to purchase a 1000 par value 10-year bond with 8% semiannual coupons bought to yield 6% convertible semiannually. All coupon payments are reinvested at a nominal rate of 4% convertible semiannually. Calculate the net gain to the investor at the end of 10 years after the loan is repaid.
a. 116
b.106
c. 111
d. 101
Answer:
d. 101
Explanation:
first we must determine the amount of the loan:
PV of face value = $1,000 / (1 + 3%)²⁰ = $553.68
PV of coupon payments = $40 x 14.877 (PV annuity factor, 3%, 20 periods) = $595.08
Loan amount = $1,148.76
Future value of the loan = $1,148.76 x (1 + 5%)¹⁰ = $1,871.21
You will receive 20 coupon payments of $40 each, which will be reinvested at 2% semiannual rate. You will also receive $1,000 corresponding to the face value of the bond.
Future value of the coupon payments = $40 x 24.297 (FV annuity factor, 2%, 20 periods)] = $971.88
Total money received at the end of the 10 year period = $971.88 + $1,000 = $1,971.88
Gain = $1,971.88 - $1,871.21 = $100.67 ≈ $101
Crane Company has accounts receivable of $96,600 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $2,287 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company’s estimates of bad debts are as shown below. Balance, March 31 Estimated Percentage UncollectibleAge of Accounts 2022 2021Current $65,600 $75,150 2%1–30 days past due 13,500 7,870 5 31–90 days past due 9,800 2,630 28 Over 90 days past due 7,700 1,140 47 $96,600 $86,790Determine the total estimated uncollectibles at March 31, 2022.Total estimated uncollectibles $Enter a dollar amount Prepare the adjusting entry at March 31, 2022, to record bad debt expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)Account Titles and Explanation Debit CreditEnter an account title Enter a debit amount Enter a credit amountEnter an account title Enter a debit amount Enter a credit amount
Answer:
Period Accounts % Uncollectibles Bad debt
receivables 2017 expense
Current $65,600 2% $1,312
1 - 30 days past due $13,500 5% $675
31 - 90 days past due $9,800 28% $2,744
Over 90 days past due $7,700 47% $3,619
Total $96,600 $8,350
So, the total estimated uncollectibles is $8,350
Date Account Titles and Explanation Debit Credit
31-03-2017 Bad debt expense $6,063
($8350 - $2287)
Allowance for Doubtful accounts $6,063
(Being adjustment entry to record bad debts recorded)
You are evaluating a project for The Ultimate recreational tennis racket, guaranteed to correct that wimpy backhand. You estimate the sales price of The Ultimate to be $400 per unit and sales volume to be 1,000 units in year 1; 1,250 units in year 2; and 1,325 units in year 3. The project has a 3-year life. Variable costs amount to $225 per unit and fixed costs are $100,000 per year. The project requires an initial investment of $165,000 in assets, which will be depreciated straight-line to zero over the 3-year project life. The actual market value of these assets at the end of year 3 is expected to be $35,000. NWC requirements at the beginning of each year will be approximately 20 per cent of the projected sales during the coming year. The tax rate is 34 per cent and the required return on the project is 10 per cent.
What will the cash flows for this project be?
Answer:
cash flow year 0 = -$245,000
cash flow year 1 = $82,700
cash flow year 2 = $157,075
cash flow year 3 = $300,837.50
Explanation:
expected sales year 1 = $400,000
expected sales year 2 = $500,000
expected sales year 3 = $530,000
initial investment = $-165,000
NWC increase for end of year 0 = -$80,000
NWC increase for end of year 1 = -$20,000
NWC increase for end of year 2 = -$6,000
NWC recovered at end of year 3 = $106,000
contribution margin per racket = $400 - $225 = $175
fixed cost per year = $100,000
depreciation rate per year = $165,000 / 3 = $55,000
after tax salvage value = $35,000 - ($35,000 x 34%) = $23,100
cash flow year 0 = -$165,000 - $80,000 = -$245,000
cash flow year 1 = {[(1,000 x $175) - $55,000] x 66%} + $55,000 - $20,000 = $82,700
cash flow year 2 = {[(1,250 x $175) - $55,000] x 66%} + $55,000 - $6,000 = $157,075
cash flow year 3 = {[(1,325 x $175) - $55,000] x 66%} + $55,000 + $106,000 + $23,100 = $300,837.50
What is division of labor?
O A. This is when an individual focuses on many different skills and
aspects of a business.
B. This is when an organization can produce goods more cost
effectively when it produces higher volumes of that good.
C. This is when an organization is able to produce goods at a lower
cost and sell for a lower cost to make a profit.
D. Another name for specialization, this is when an individual focuses
on one specific skill in the field.
Division of labor is another name for specialization, this is when an individual focuses on one specific skill in the field. Thus, the correct answer is option D.
What is division of labor?The separation of tasks in any economic system or organization so that participants can specialize is referred to as the division of labor (specialization). Individuals, organizations, and nations are endowed with or acquire specialized capabilities, and they either form alliances or trade to benefit from the abilities of others in addition to their own.
The division of labor is the division of a work process into a number of tasks, each of which is performed by a different person or group of people. It is most commonly used in mass production systems and is one of the basic organising principles of the assembly line. The motivation for trade and the source of economic interdependence is the division of labor.
Therefore, division of labor occurs when an individual focuses on one specific skill in the field.
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The independent variable in the Contingency school of leadership is: a. Maturity of the followers b. Clarity of the task c. Time horizon d. Organizational support for the leader e. b), c), and d) Only
Answer:
a. Maturity of the followers b. Clarity of the task d. Organizational support for the leader
Explanation:
This approach was birthed by Fred Fiedler in 1958 in his research of leader effectiveness in group situations. According to him a leader need not remain fixed in his skills and styles of leadership given that situations change and require a different style and approach to deal with them. He therefore elucidated that an effective leader based on the contingency theory of leadership approach matches his style and skill to the situation or problem at hand. The factors this leader pays attention may invariably alter his style of leadership hence. Factors include : followers, organizational support, leader, and environment
________is trying to understand customer shopping patterns and offer items that are regularly bought together to new customers.
Answer:
Amazon
Explanation:
Amazon is the online shopping sites that deals in every kind of product such s as clothing, jewellery, cosmetics, home decor, etc
It has a great deals that offered for a limited time in order to give the customer at the lowest cost as compared with the regular price
So it is trying to understand the shopping patterns of the customers and the offer that items that are frequently purchased together to a new customers
Therefore the above represent the Amazon
Which of the following is not an attribute of a Limited Partnership?
The limited partner is authorized to make business decisions on behalf of the general partners.
Limited partnerships do not share in the risk of the company beyond the amount of their investment.
Limited Partners cannot sell their interest in the business without notifying the general partners.
Limited Partners are paid a dividend on profits earned by the company.
Answer:
The limited partner is authorized to make business decisions on behalf of the general partners.
Explanation:
A limited partner also knows a silent partner. The limited partner enjoys limited liability to the debts of the business. They are called silent partners because they do not participate in running the business affairs. A limited partner contributes capital to the partnerships and allows the general partner to manage the business affairs.
Since a limited partner enjoys limited liabilities to the partnership's debts, they are not allowed to make business decisions. The general partners with unlimited liabilities run the business and make all the decisions.
Great Kids Co. began providing day care for the children of employees of a large corporation on January 15 for an agreed monthly fee of $9,000. The first payment is to be received on February 15. The adjusting entry required by Great Kids Co. on January 30 includes:
Answer:
A. A credit to Child Care Fees Earned of $4,500.
Explanation:
The journal entry to record this given transaction is given below:
Cash A/c Dr $4,500
To Child Care Fees Earned A/c $4,500
(Being the fees earned is recorded)
As the payment is collected that means cash balance is rise so it debited the cash account and credited the child care fees earned account.
As The monthly fee is $9,000 but we have to determine for 15 days, so it is
= $9,000 ÷ 2
= $4,500
When you establish a friendship with a supervisor at work, it is a good idea to establish __________ to prevent potential problems.
Answer:
Ground rules
Explanation:
Rules between the supervisor and staff would ensure that professionalism is maintained in the workplace and certain protocols are not breached.
Determine income tax expense under the current situation:Taxable income during the year: $220 millionChange in future taxable amounts during the year: $16 millionTax rate: 25%.
Answer: $51 million
Explanation:
Based on the values given in the question, the income tax expense would be calculated as:
Taxable Income = $220 million
Less : Deferred Income = $16 million
Form the above, we would then calculate the tax expense as:
= 25% × ($220 - $16)
= 25% × $204 million
= 0.25 × $204 million.
= $51 million
What is meta genetics
Metagenomics is the study of genetic material recovered directly from environmental samples. The broad field may also be referred to as environmental genomics, ecogenomics or community genomics.
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Marbella has 101 residents. All wear the same fancy clothes and each has the same utility function, uſm, b, B) = m + 166 – 62 – B/50, where m is the amount of maccaroni (in kilograms) that he or she eats per day, b is the number of hours that he or she spends on the beach per day, and B is the total number of person-hours spent per day on the beach by other residents of Marbella. Each has an income of $10 per day and maccaroni costs $1 per kilogram. City council is considering a law that would limit the amount of time that any person can spend on the beach. How many hours per day should they allow in order to maximize the utility of a typical Marbellite? a. 7 hoursb. 8 hoursc. 10 hours
Answer:
a = 7 hours is the time must be allowed to maximize the utility of a typical Marbellite.
Explanation:
Note: Some corrections in the questions
Wrong Utility function is = uſm, b, B) = m + 166 – 62 – B/50,
Correct Utility function = u ( m, b, B) = m + 16[tex]b^{}[/tex] - [tex]b^{2}[/tex] - [tex]\frac{b}{50}[/tex]
Data Given:
Marbella residents = 101
Utility Function = u ( m, b, B) = m + 16[tex]b^{}[/tex] - [tex]b^{2}[/tex] - [tex]\frac{b}{50}[/tex]
where m = amount of maccaroni (Kg)
b = hours spend on beach
B = total person-hours spent on beach
Each residents has an income of 10$ per day
maccaroni costs = 1$ per kg
Required = How many hours per day should they allow in order to maximize the utility of a typical Marbellite ?
Solution:
In order to find the required statement, we need to find the value of [tex]b^{}[/tex] from the utility function.
And it can be done by applying the partial differentiation on the utility function.
u ( m, b, B) = m + 16[tex]b^{}[/tex] - [tex]b^{2}[/tex] - [tex]\frac{B}{50}[/tex]
[tex]\frac{du}{dm}(m,b,B)[/tex] = [tex]\frac{dm}{dm}[/tex] +16[tex]b^{}[/tex] - [tex]b^{2}[/tex] - [tex]\frac{B}{50}[/tex]
[tex]\frac{du}{dm}(m,b,B)[/tex] = 1
[tex]\frac{du}{db}(m,b,B)[/tex] = 1m +16[tex]\frac{db}{db}[/tex] - [tex]\frac{db}{db}[/tex][tex]b^{2}[/tex] -[tex]\frac{B}{50}[/tex]
[tex]\frac{du}{db}(m,b,B)[/tex] = 16- 2[tex]b^{}[/tex]
[tex]\frac{du}{dB}(m,b,B)[/tex] = 1m +16b- 2[tex]b^{}[/tex] - [tex]\frac{dB}{dB}[/tex][tex]\frac{B}{50}[/tex]
[tex]\frac{du}{dB}(m,b,B)[/tex] = - [tex]\frac{1}{50}[/tex]
Solving the above equations, we will get b.
b = 7 hours
Hence, a = 7 hours is the time must be allowed to maximize the utility of a typical Marbellite.
what is income demand curve?
3. At Virtual Frontier International, employees tend to work with little direct supervision. They are expected to use creativity and imagination on the job because management believes they are committed and professional workers. Explain what management style is appropriate at Virtual Frontier?
Answer:
Transformational management style
Explanation:
Transformational managers push their employees to get out of their comfort zones. They encourage employees to be the champions of change. Transformational managers are innovators. They encourage creativity and innovations as a way of staying ahead of the competition.
In the transformational leadership style, managers show confidence and believe in employee abilities. Employees are given the freedom to use their imagination in executing their duties. They are challenged and motivated to achieve their full potential, to be better, and succeed.
In deciding whether to accept a special sales order which of the following costs are likely relevant?
A) Depreciation expense on manufacturing equipment.B) A portion of facilities-level costs.C) A portion of batch-level costs.D) Total batch-level costs.E) An allocated share of fixed manufacturing support costs.
Answer:
C) A portion of batch-level costs.
Explanation:
A special sales order is defined as a single time opportunity for the firm or for the business to sell a specific quantity of a product or a service in the market. It mainly comes from the customers directly and not from the various distribution channels or through other normal sales.
A special sales order is typically unexpected.
A batch level cost is the amount or price which is related to the group of units.
In determining whether to accept the special order sales or to reject the special sales order, a portion of the batch level cost is more relevant to the decision.