If Vinny Corp. decides to buy the subcomponents instead of making them, the effect on operating income will be a decrease of $200,000, option C.
Explanation: Vinny Corp. is currently producing 20,000 subcomponents at a total unit cost of $50 per subcomponent. The fixed manufacturing overhead relates to all products and subcomponents produced by Vinny, which means that this cost is the same whether Vinny produces the subcomponents or not. So the relevant costs for making the subcomponents are the variable costs.
Direct materials $15
Direct labor $10
Variable manufacturing overhead $15
Total variable cost $40.
So, if Vinny decides to make the subcomponents instead of buying them, the total cost would be:
Total cost = Variable cost + Fixed cost = $40 × 20,000 + $10 × 20,000 = $800,000 + $200,000 = $1,000,000
On the other hand, if Vinny decides to buy the subcomponents, the cost would be:
Total cost = Purchase price = $45 × 20,000 = $900,000
The effect on operating income would be the difference between the two costs:
Effect on operating income = Cost of making - Cost of buying = $1,000,000 - $900,000 = $100,000 decrease
Therefore, the effect on operating income would be a decrease of $100,000 if Vinny buys the subcomponents instead of making them.
However, the fixed manufacturing overhead is a common cost that will not change whether Vinny makes or buys the subcomponents. Therefore, we can ignore it when comparing the costs of making and buying the subcomponents. So, if we only consider the variable costs, the cost of making the subcomponents would be $40 per unit, while the cost of buying the subcomponents would be $45 per unit. In this case, the effect on operating income would be:
Effect on operating income = Cost of making - Cost of buying
= $40 × 20,000 - $45 × 20,000
= $800,000 - $900,000
= -$100,000.
This means that Vinny would save $5 per unit if it buys the subcomponents instead of making them, but this savings would be more than offset by the fixed manufacturing overhead cost, resulting in a decrease of $200,000 in operating income. Therefore, the correct answer is $200,000 decrease.
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Consider a one-year futures contract on gold. We assume that it costs $2 per ounce per year to store gold, with the payment being made at the end of the year. The spot price is $1600 per ounce and the risk-free rate is 5% per annum for all maturities.
The cost of holding one ounce of gold for one year is $2.
Futures contracts are standardized contracts that are traded on exchanges where the price and delivery date of the underlying asset are predetermined. In this case, we are considering a one-year futures contract on gold. It is assumed that it costs $2 per ounce per year to store gold, which is known as the cost of carry. This cost includes storage, insurance, and other expenses associated with holding gold. The payment for this cost is made at the end of the year.Therefore, if an investor decides to purchase a one-year gold futures contract, they will have to pay the spot price of $1600 per ounce plus the cost of carry of $2 per ounce. The total cost of the contract would be $1602 per ounce. The risk-free rate is 5% per annum for all maturities, which is the rate at which an investor can borrow or lend without risk.
The costs of storing unsold inventory are known as holding costs. Along with costs for ordering and shortage, these costs make up one part of the total cost of inventory. The cost of damaged or spoiled goods, as well as the cost of storage space, labor, and insurance, are all included in a company's holding costs.
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Why do firms have to address the three fundamental economic questions of "how, "what" and "for whom"? 2 Marks
Why is the assumption of "ceteris paribus" important? 1 Mark
Positive and normative economic statements play a vital role in economics. Provide an example of each and explain their importance. 2 Marks
Is causation the same as correlation? Explain using example(s). 2 Marks
Firms have to address the three fundamental economic welfare questions of "how," "what," and "for whom" because the answers to these questions are critical for the success of the firm.
The term "how" in economics refers to the various methods, techniques, and procedures used to produce goods and services. Production is not just about making goods, but it also includes the steps required to complete a task, such as transportation, storage, and distribution.
"How" involves identifying which resources will be used in the production process, such as labor, capital, and natural resources, and deciding how they will be used to achieve the desired outcomes. Production processes can be automated or manual, and the technology used in the production process has a significant impact on the efficiency and quality of the product.
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Chloe, age 48, divorced her husband in 2017. • Chloe's 4 year old grandson, Marcus, has been living with her since his parents were incarcerated in August 2019. Chloe provided all the support for Marcus and all the costs of keeping up their home in 2021. • Chloe worked full time and earned $53,000. She received no other income in 2021. • Marcus attends daycare while Chloe works. Chloe received a statement from the daycare provider showing she paid $5,980 for Marcus' care for the year. She did not pay any 2020 expenses in 2021. • Chloe received the third Economic Impact Payment (EIP 3) of $2,800 in 2021. • Chloe received advance payments of the Child Tax Credit totaling $1,800 in 2021Chloe and Marcus are both U.S. citizens, lived in the United States all year, and have valid Social Security numbers. No one else lives in the household with them. . After reconciling the advance payments, how much Child Tax Credit will Chloe be able to claim on her 2021 federal income tax return? OA. $3,600 OB. $3,000 OC. $2,000 OD. $1,800
Chloe will be able to claim a Child Tax Credit of $3,600 on her 2021 federal income tax return.
The Child Tax Credit amount increased to $3,600 per qualifying child for the tax year 2021 due to changes in the American Rescue Plan Act. Marcus, Chloe's grandson, is a qualifying child for the purpose of claiming the Child Tax Credit.
Chloe provided all the support for Marcus and incurred daycare expenses for him. Additionally, both Chloe and Marcus are U.S. citizens with valid Social Security numbers. As a result, Chloe meets the eligibility criteria to claim the full Child Tax Credit amount for Marcus.
Although Chloe received advance payments of the Child Tax Credit totaling $1,800, the credit will be reconciled on her 2021 tax return. This means that the advance payments will be offset against the total Child Tax Credit she is eligible to claim. As the full credit amount is $3,600, Chloe will be able to claim the remaining $1,800 on her tax return.
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A semi-circle is surmounted on the side of a square. The ratio of the area of the semi-circle
to the area of the square is
The ratio of the area of the semi-circle to the area of the square is determined as: C. π : 8.
How to Find the Ratio of the Area of the Semicircle to that of the Square?The semicircle's area is half that of a full circle, which can be determined using the formula πr² where r is the radius.
Note that the semicircle's diameter matches the square's side length, the radius equals half the side length, while the square's area is found by squaring its side length, resulting in a ratio of (π/2)r² : s².
Simplifying this further, we would have:
(π/2)r² : s²
= π : 8 (or π/8)
Therefore, the correct answer C. π : 8.
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On January 2, 2020, All Good Company purchased 6,000 shares of the stock of Big Bad Company, and DID obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $10.00 per share, and represents a 30% ownership stake. Big Bad Company made $450,000 of net income in 2020, and paid dividends to All Good Company of $40,000 on December 15, 2020. Big Bad Company's stock was trading on the open market for $15.50 per share at the end of the year. Use this information to determine the book value of the investment that should be reported at year end by All Good Company. Round to nearest whole number (no cents).
Answer:
$155,000
Explanation:
Calculation to determine the book value of the investment that should be reported at year end by All Good Company
Initial investment (6,000* $10.00 per share) $60,000
Add: Net income ($450,000*30%) $135,000
Less: Dividend ($40,000)
Ending balance of investment $155,000
($60,000+$135,000-$40,000)
Therefore the book value of the investment that should be reported at year end by All Good Company is $155,000
The book value of the investment that should be reported at year-end would be $155,000 by All Good Company.
What is the calculation of the book value of the investment?The initial investment is derived as;
[tex]6,000* 10.00\\=60,000[/tex]
Now, net income would be;
[tex]450,000*0.30\\=135,000[/tex]
The Dividend is given as $40,000, which would compute the ending balance of investment as;
[tex]60,000+135,000-40,000\\=155,000[/tex]
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Raymond co. has 2.3 million of debt, 1 million of preferred stock, and 2.2 million of common equity. what would be its weight on common equity?
.40
.42
.14
.16
If Raymond co. has 2.3 million of debt, 1 million of preferred stock, and 2.2 million of common equity. Its weight on common equity is: A..40
What is the weight on common equity?To calculate the weight of common equity we need to find the proportion of common equity relative to the total capital structure of Raymond Co.
Total capital structure = Debt + Preferred Stock + Common Equity
Total capital structure = $2.3 million + $1 million + $2.2 million
Total capital structure = $5.5 million
Weight on common equity = Common Equity / Total capital structure
Weight on common equity = $2.2 million / $5.5 million
Weight on common equity ≈ 0.4
Therefore the weight on common equity for Raymond Co. is 0.40.
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The process to go from transactions and events to financial statements begins with: Multiple Choice a. Identifying each transaction and event from source documents. b. Preparing financial statements and other reports c. Analysis of prepared financial statements d. Presentation of financial information to decision-makers
e. Preparation of the trial balance
The correct answer is (a) Identifying each transaction and event from source documents.
The process of going from transactions and events to financial statements starts with identifying each transaction and event from source documents. Source documents include things like receipts, invoices,
bank statements, and other records that provide evidence of the transactions and events that have taken place. It is essential to gather and analyze these source documents to ensure accurate recording and reporting of financial information.
Once the transactions and events are identified, they are recorded in the accounting system through journal entries. This step involves classifying and summarizing the transactions according to their nature and the specific accounts they affect.
These journal entries are then used to prepare the trial balance, which lists the balances of all accounts to ensure they are in balance.
After preparing the trial balance, the process moves on to the next steps, such as adjusting entries, preparing financial statements, analyzing the financial statements, and presenting the financial information to decision-maketers.
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Question 6
A company that files for Chapter 7 of the Bankruptcy Law is reorganized to meet its obligations to the extent possible and continue its operations, possibly under new or restructured management.
Select one:
a. TRUE
b. False
Question 7
Within the ESG investment categories, if the company's board of directors is characterized by being diverse and responding with the greatest benefit to its shareholders, it is considered within the ESG investment category:
Select one:
a. environmental
b. Social
c. governance
d. none
Question 8
One of the indexes that group companies that meet the criteria of socially responsible investment or ESG is:
Select one:
a. DJIA
b. S&P 500
c.
DJSI
d. Russell 2,000
Question 9
How many USD will it cost a US citizen to buy a Japanese product priced at ¥60,000 if the Spot Rate: USDJPY=104.00
a. $577
b. $700
c. $5,769
d. $62,400
Question 10
Some of the instruments used as strategies for risk coverage (hedging) are the following, except:
Select one:
a. option contracts
b. common and preferred shares
c. forwards and futures contracts
d. swaps
Question 6: False. A company that files for Chapter 7 of the Bankruptcy Law is liquidated, not reorganized. The company's assets are sold, and the proceeds are used to pay off its creditors. The company is no longer in operation after this occurs.
Question 7:Correct option is c. Governance. Governance is one of the ESG investment categories. A company that prioritizes governance has a board of directors that is diverse and works for the benefit of its shareholders.
Question 8:c. DJSI . The DJSI is one of the indexes that group companies that meet the criteria of socially responsible investment or ESG. The Dow Jones Sustainability Indices (DJSI) were developed jointly by S&P Dow Jones Indices and RobecoSAM.
Question 9: Correct option is a. $577. To calculate the amount it would cost a US citizen to purchase a Japanese product priced at ¥60,000, we need to use the USDJPY exchange rate. If the Spot Rate: USDJPY=104.00, that means 1 US dollar (USD) is equivalent to 104 Japanese yen (JPY). As a result, the price in USD of a Japanese product that costs ¥60,000 is as follows: $60,000/104 = $576.92 ≈ $577
Question 10: Correct option is b. common and preferred shares. Common and preferred shares are not instruments used for hedging. Option contracts, forwards and futures contracts, and swaps are some of the instruments used as strategies for risk coverage (hedging).
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____________________ (or complaint) letters are written by customers to identify or to correct a problem with products or services they have purchased.
Complaint letters are written by customers to identify or correct a problem with products or services they have purchased.
Complaint letters serve as a means for customers to express their dissatisfaction or concern regarding a product or service they have obtained. These letters are written with the intention of addressing specific issues, such as defective items, poor customer service, billing errors, or any other problem encountered during the purchasing process.
By detailing the problem in a formal letter, customers hope to bring attention to their concerns and seek resolution or compensation. Complaint letters are an effective way for customers to communicate their grievances and hold companies accountable for delivering satisfactory products or services.
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What are the main components of the balance of payments? How are they connected to the Net International Investment Position?
What do they look like for Australia and, in particular, how have they changed in the past ten years in this country relative to the previous years?
The main components of the balance of payments are the current account, capital account, and financial account. The NIIP has remained negative, indicating that the value of Australia's foreign liabilities exceeds the value of its foreign assets.
The main components of the balance of payments are the current account, capital account, and financial account. They are connected to the Net International Investment Position (NIIP) by the capital account and the financial account.The capital account reflects non-produced non-financial assets, such as patents and copyrights, as well as the balance of transfers.
The financial account measures the change in foreign ownership of domestic assets, including foreign direct investment (FDI), portfolio investment, and financial derivatives.The NIIP is the difference between a country's foreign assets and foreign liabilities. It is a measure of the net value of a country's foreign assets.
When a country has a positive NIIP, it means that the value of its foreign assets exceeds the value of its foreign liabilities. When a country has a negative NIIP, it means that the value of its foreign liabilities exceeds the value of its foreign assets.
In Australia, the balance of payments has been consistently negative over the past ten years. In 2019, the current account deficit was $23.1 billion. This was driven by a deficit in the trade in goods and services. The capital account and financial account have been positive in recent years, which has helped to offset the current account deficit.
However, the NIIP has remained negative, indicating that the value of Australia's foreign liabilities exceeds the value of its foreign assets. In particular, the net foreign debt of the private sector has increased significantly in recent years, which has contributed to the negative NIIP.
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Requirement 2. Calculate each division's sales margin. Interpret your results. First enter the formula, then calculate each division's sales margin. Sales margin Print Done Residential % Professional % Interpret your results. The Professional Division is earning about ROI. on each dollar of sales whereas the Residential Division is only earning about V on each dollar of sales. The higher sales margin helps to account for its higher Requirement 3. Calculate each division's capital turnover. Interpret your results. First enter the formula, then calculate each division's capital turnover. (Round your answer to two decimal places.)
The Professional Division is earning about 24% on each dollar of sales, whereas the Residential Division is earning about 25% on each dollar of sales. Despite the Professional Division having a higher net income in absolute terms, its sales margin is slightly lower than the Residential Division's sales margin.
To calculate each division's sales margin, we'll use the formula:
Sales Margin = (Net Income / Sales) * 100
Given the following information:
Residential Division:
Net Income: $500,000
Sales Revenue: $2,000,000
Professional Division:
Net Income: $1,200,000
Sales Revenue: $5,000,000
Let's calculate the sales margin for each division:
Residential Division Sales Margin = (500,000 / 2,000,000) * 100 = 25%
Professional Division Sales Margin = (1,200,000 / 5,000,000) * 100 = 24%
Interpreting the results:
This indicates that the Residential Division is more efficient in generating profit from its sales, as it retains a higher percentage of its sales revenue as net income. The higher sales margin of the Residential Division helps account for its higher profitability in comparison to the Professional Division.
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--The complete Question is, Calculate each division's sales margin. Interpret your results. First, enter the formula, then calculate each division's sales margin. Sales margin Print Done Residential % Professional % Interpret your results. The Professional Division is earning about ROI. on each dollar of sales whereas the Residential Division is only earning about V on each dollar of sales. The higher sales margin helps to account for its higher. Having
Residential Division:
Profit: $500,000
Sales Revenue: $2,000,000
Professional Division:
Profit: $1,200,000
Sales Revenue: $5,000,000 --
Assume taxes are zero and the consumption function is C = 0.75(Y) + $250. Based on this information, the break-even (short-run equilibrium) level of income is $
To determine the break-even level of income, we need to find the level of income at which consumption equals income. In other words, it is the level of income where there is no saving or dis-saving, and all income is consumed.
Given the consumption function C = 0.75(Y) + $250, where Y represents income, we can equate consumption to income to find the break-even level of income.
Setting C equal to Y, we have:
0.75(Y) + $250 = Y
Now we can solve for Y:
0.75Y - Y = -$250
Simplifying the equation, we get:
-0.25Y = -$250
Dividing both sides of the equation by -0.25, we find:
Y = -$250 / -0.25
Y = $1000
Therefore, the break-even (short-run equilibrium) level of income is $1000. At this level of income, consumption is equal to income, and there is no saving or dis-saving. It represents the point where the aggregate demand for goods and services (determined by consumption) matches the aggregate supply (determined by income).
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Because wants exceed resources, the economic question of 'blank______ to produce' is related to identifying the goods and services we want most, sacrificing less desired products
The economic question of "what (or which) goods and services to produce" is closely related to the challenge of allocating limited resources in a world where wants and needs exceed available resources.
This question is at the core of resource allocation and decision-making in an economic system.
Due to scarcity, societies and individuals must make choices about how to utilize their limited resources effectively. The question of "what to produce" involves identifying the goods and services that are most desired or needed by society and prioritizing their production over less desired products.
It requires evaluating the preferences and demands of individuals and determining which goods and services will provide the greatest satisfaction or utility.
This decision-making process involves considering various factors such as consumer preferences, market demand, production costs, and resource availability. Economies aim to produce goods and services that can satisfy the needs and wants of individuals while maximizing overall welfare and efficiency.
In order to allocate resources efficiently, trade-offs and sacrifices must be made. Scarce resources must be directed towards producing the goods and services that are most highly valued, often requiring the sacrifice of producing less desired products.
This process involves making choices about what to prioritize, taking into account the opportunity costs of allocating resources in one direction rather than another.
Ultimately, the question of "what goods and services to produce" is a fundamental economic question that lies at the heart of resource allocation and the pursuit of maximizing societal welfare.
It requires careful consideration of preferences, trade-offs, and the efficient utilization of limited resources to meet the diverse needs and wants of individuals and society as a whole.
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A company is considering an investment in the Stock ZZZ currently trading at $42.0. The price of the Stock ZZZ is expected to be highly volatile in the subsequent months. Therefore, the company buys one call option and one put option on the stock. Both options expire in 3 months and have the same exercise price of $37.5. The call option premium is $6.0 and the put option premium is $1.5. Required:
1) What is the term commonly used for this option strategy?
2) For each of the following two independent scenarios, compute the value of the option position at expiration and the profit of the strategy. a) The stock price at expiration is $43.5. b) The stock price at expiration is $22.5.
3) Compute the breakeven stock prices at expiration.
Option Strategy: Straddle is the term commonly used for this option strategy, where the buyer of a straddle expects high volatility in the stock price.
Value of the Option Position at Expiration and Profit of the Strategy Scenario 1: Stock price at expiration is $43.5 Call option will be exercised.
Profit on call option = $43.5 − $37.5 − $6 = $0
Put option will not be exercised.
Profit on put option = −$1.5Total profit = $0 − $1.5 = −$1.5
Scenario 2: Stock price at expiration is $22.5Call option will not be exercised.
Profit on call option = −$6
Put option will be exercised.
Profit on put option = $37.5 − $22.5 − $1.5 = $13.5
Total profit = −$6 + $13.5 = $7.5
Breakeven Stock Prices at The breakeven stock prices at expiration are calculated by adding or subtracting the net premium received from the exercise price. The net premium received is the difference between the premium of the call and put options. Here, the net premium received is $4.5 ($6 − $1.5).The breakeven prices are:
$37.5 + $4.5 = $42.0
and
$37.5 − $4.5 = $33.0.
Thus, the breakeven prices are $33.0 and $42.0.
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Derive a reduced form equation that will show the comparative static effect of a percentage sales tax on a company that faces the demand schedule p = 680 − 3 and the total cost function T = 20 + 0.42.
The reduced-form equation is used to study comparative statics or a change in an equilibrium of a model due to a change in one or more of its parameters, with all other variables held constant.
To derive the reduced-form equation that shows the comparative static effect of a percentage sales tax on a company that faces the demand schedule p = 680 − 3 and the total cost function T = 20 + 0.42, we will use the formulae:Revenue = Price x QuantityQ = D(P)Total Cost = T(Q)Profit = Revenue – Total CostTherefore,Revenue = P(Q)QTotal Cost = 20 + 0.42QProfit = P(Q)Q – (20 + 0.42Q)Before a tax, the price, p is 680 − 3Q. After a tax t is imposed, the price increases to p + t.
The quantity demanded decreases due to the higher price. The price that buyers pay increases, but the price that sellers receive stays the same. Therefore, the amount of the tax is equal to the price increase. The tax revenue is the amount of the tax multiplied by the quantity sold.Tax revenue = t(Q)Q = (p + t)Q – pQ = tQTax incidence is the division of the tax burden between buyers and sellers.
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In an economy, C= $180 +0.8Yd; I= $100; G = $60; T = $10+ 0.06Y. Calculate the equilibrium level of national income using income-expenditure methods. Is the economy running a budget deficit or surplus? Explain.
The equilibrium level of national income is approximately $1338.71 and the economy is running a budget surplus of $30.32.
To calculate the equilibrium level of national income using the income-expenditure method, we need to equate total income (Y) to total expenditure (C + I + G).
In this case:
C = $180 + 0.8Yd
I = $100
G = $60
T = $10 + 0.06Y
Total expenditure (E) is the sum of consumption (C), investment (I), and government spending (G):
E = C + I + G
E = ($180 + 0.8Yd) + $100 + $60
Now, let's substitute the equation for disposable income (Yd) into the consumption function:
Yd = Y - T
Yd = Y - ($10 + 0.06Y)
Yd = Y - $10 - 0.06Y
Substituting this into the consumption function:
C = $180 + 0.8(Y - $10 - 0.06Y)
C = $180 + 0.8Y - 0.8($10) - 0.8(0.06Y)
C = $180 + 0.8Y - $8 - 0.048Y
C = $172 + 0.752Y
Now, let's substitute the equations for consumption (C), investment (I), and government spending (G) into the total expenditure equation:
E = ($172 + 0.752Y) + $100 + $60
E = $172 + $100 + $60 + 0.752Y
E = $332 + 0.752Y
Setting total expenditure (E) equal to total income (Y):
Y = E
Y = $332 + 0.752Y
To solve for the equilibrium level of national income (Y), we subtract 0.752Y from both sides and rearrange the equation:
Y - 0.752Y = $332
0.248Y = $332
Y = $332 / 0.248
Y ≈ $1338.71
Hence, the equilibrium level of national income is approximately $1338.71.
To determine if the economy is running a budget deficit or surplus, we compare government spending (G) with tax revenue (T):
Budget surplus/deficit = T - G
Substituting the given values:
Budget surplus/deficit = ($10 + 0.06Y) - $60
Budget surplus/deficit = $10 + 0.06($1338.71) - $60
Budget surplus/deficit = $10 + $80.32 - $60
Budget surplus/deficit = $30.32
The budget surplus/deficit is approximately $30.32. Since the value is positive, the economy is running a budget surplus.
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Use the following information to determine SH FLOW FROM OPERATIONS: Comparative Balance Sheet December 31 2020 2019 Cash $40,000 $57,000 Accounts Receivables 77,000 64,000 Inventory 132,000 140,000 Pr
Determination of SH FLOW FROM OPERATIONS in comparative Balance Sheet December 31 2020 2019 is Net income is $70,000 ($127,000 - $57,000), so the cash flows from operations are $35,000.
Cash flows from operations (CFO) is a measure of how much cash is produced or consumed by a company's typical business operations. It's a fundamental measure of financial health that indicates whether a company is generating enough cash to pay its bills. The following data are used to calculate CFO: Changes in non-cash working capital accounts, like inventory, accounts receivable, and accounts payable, are used to calculate cash flows from operating activities. Cash flow from operations is the difference between a company's net income and changes in its working capital account.The balance sheet contains information on a company's assets, liabilities, and equity at a specific point in time. It is divided into two parts: assets and liabilities. The asset side includes a company's cash, accounts receivable, inventory, and other items. The liability side includes accounts payable, long-term debt, and other obligations. For cash flow from operations, the comparative balance sheet information can be used to calculate the changes in the working capital accounts.The comparative balance sheet provides the starting and ending balances for these accounts. For example, let's use the comparative balance sheet data provided to calculate SH FLOW FROM OPERATIONS: Comparative Balance Sheet December 31, 2020 2019, Cash $40,000- $57,000, Accounts Receivables 77,000- 64,000 Inventory, 132,000- 140,000 To compute SH FLOW FROM OPERATIONS, we'll start with the basic formula: Net income is $70,000 ($127,000 - $57,000), so the cash flows from operations are $35,000.For more such questions on cash flows, click on:
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A machine is used to fill soda bottles in a factory. The bottles are labeled as containing 2.0 liters, but extra room at the top of the bottle allows for a maximum of 2.25 liters of soda before the bottle overflows. The standard deviation of the amount of soda put into the bottles by the machine is known to be 0.15 líter. (a) Overfilling the bottles causes a mess on the assembly line, but consumers will complain if bottles contain less than 2 liters. If the machine is set to fill the bottles with an average of 2.08 liters, what proportion of bottles will be overfilled? (b) It management requires that no more than 3% of bottles should be overfilled, the machine should be set to fill the bottles with what mean amount? (c) Complaints from consumers about underfilled bottles leads the company to set the mean amount to 2.15 liters. In this situation, what standard deviation would allow for no more than 3% of the bottles to be overfilled?
a) The proportion of bottles overfilled can be calculated as P(Z > 1.13). b) The z-score that corresponds to a cumulative area of 0.97.
(a) To find the proportion of bottles that will be overfilled, we need to calculate the z-score for the upper limit of 2.25 liters and then find the corresponding area under the normal distribution curve.
The z-score is calculated as:
z = (X - μ) / σ
where X is the upper limit (2.25 liters), μ is the mean (2.08 liters), and σ is the standard deviation (0.15 liters).
z = (2.25 - 2.08) / 0.15
z ≈ 1.13
Using a standard normal distribution table or a calculator, we can find the proportion of values above the z-score of 1.13, which represents the proportion of bottles that will be overfilled.
(b) To find the mean amount that would result in no more than 3% of bottles being overfilled, we need to find the corresponding z-score for a cumulative area of 0.97 (since 1 - 0.03 = 0.97).
Using the standard normal distribution table or a calculator, we can find the z-score that corresponds to a cumulative area of 0.97.
(c) To find the standard deviation that would allow for no more than 3% of bottles to be overfilled when the mean amount is set to 2.15 liters, we need to find the corresponding z-score for a cumulative area of 0.97.
Once we have the z-score, we can use the formula:
σ = (X - μ) / z
where X is the upper limit (2.25 liters), μ is the mean (2.15 liters), and z is the z-score.
Using the z-score and the given values, we can calculate the required standard deviation σ.
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Intro You took out a student loan in college and now have to pay $1,500 every year for 20 years, starting one year from now. The annual interest rate on the loan is 6%. Attempt 1/10 for 1 pts. Part 1 What is the present value of the 20 yearly payments?
The present value of the 20 yearly payments can be calculated as follows:First, you need to calculate the present value of a single payment and then use that value to find the present value of all 20 payments.
The formula used to calculate the present value of a single payment is given by: PV = FV / (1 + r)nWhere, PV is the present value, FV is the future value, r is the interest rate, and n is the number of years.To find the present value of the 20 yearly payments, you will need to use the formula for the present value of an annuity.
The formula used to calculate the present value of an annuity is given by: PV = Pmt × [1 – 1 / (1 + r)n] / rWhere, Pmt is the payment amount, r is the interest rate, and n is the number of years.In this case, Pmt = $1,500, r = 6% = 0.06, and n = 20. Therefore, the present value of the 20 yearly payments is:PV = $1,500 × [1 – 1 / (1 + 0.06)20] / 0.06≈ $19,785.57
The present value of the 20 yearly payments is approximately $19,785.57.
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Provide a substantive post that analyzes the elitits versus pluralist perspective (Mills vs. Dahl) and use the article on oligarchy by Winters and Page to argue which theory appears more applicable to the political process of the United States.
The elitist versus pluralist perspective is a longstanding debate in political science, with C. Wright Mills and Robert Dahl representing two prominent viewpoints.
Mills argues for an elitist perspective, asserting that power in the United States is concentrated in the hands of a small ruling elite, while Dahl advocates for a pluralist perspective, suggesting that power is dispersed among multiple competing interest groups. The article on oligarchy by Winters and Page sheds light on this debate. Mills argues that power in the United States is held by a small group of economic and political elites who make decisions that affect society.
On the other hand, Dahl's pluralist perspective contends that power in democratic societies is dispersed among various interest groups. He emphasizes the existence of a multitude of interest groups representing diverse societal interests. Dahl argues that these groups compete for influence and have access to decision-making processes through mechanisms such as lobbying, elections, and public discourse. Winters and Page's article on oligarchy introduces empirical evidence that supports an elitist perspective. Their research shows that economic elites exert substantial influence over policy outcomes, while the preferences of the majority of citizens have a minimal impact.
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hashira ruriko purchased 260 shares of stock for $26 a share and sold them for $32 a share. the commissions required to buy and sell her stock totaled $170 for each transaction. assuming she received no dividends during the time she owned the stock, what is her total investment on the purchase of this stock?
Hashira Ruriko had a total investment of $120 on the purchase of this stock.
Hashira Ruriko purchased 260 shares of stock for $26 a share, and the total purchase price for these shares would be $6,760. The commission required to purchase the stock would also be $170.
Assuming that she sold the shares for $32 each, her total sales would amount to $8,320. And the commission required for the selling of the stock would also be $170.In order to find out her total investment, we need to subtract her expenses from the selling price of the stock. Therefore, her total investment in the stock would be as follows:
Amount invested in buying the stock = $6,760
Total commission required to buy the stock = $170
Total commission required to sell the stock = $170
Total cost of selling the stock (commissions required to buy and sell the stock) = $340
Profit from selling the stock = $8,320 - $340 = $7,980
Therefore, her total investment in the purchase of the stock would be $6,760 + $340 - $7,980 = $120.
Thus, Hashira Ruriko had a total investment of $120 on the purchase of this stock.
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1. The theory of the Real Business Cycle (RBC) argues that fluctuations in output and employment are optimal responses to shocks in the economic. Discuss the RBC assumptions and highlight the critics
The Real Business Cycle (RBC) theory argues that fluctuations in output and employment are optimal responses to shocks in the economy. The theory is based on the assumption that fluctuations in output and employment are a result of changes in technology and preferences.
According to RBC theory, the economy is always in equilibrium and any fluctuations that occur are a result of shocks that cause the economy to deviate from its equilibrium state. These shocks can be caused by changes in technology, preferences, or external events such as wars or natural disasters. RBC theory also assumes that agents in the economy are perfectly rational and have complete information about the economy.
This means that agents are able to adjust their behavior in response to shocks in the economy. The theory also assumes that markets are perfectly competitive and that there are no market imperfections such as monopolies or externalities. Critics of RBC theory argue that it is too simplistic and unrealistic. The theory assumes that agents are perfectly rational and have complete information about the economy, which is not true in real life. It also assumes that markets are perfectly competitive, which is not the case in many industries. Finally, critics argue that the theory does not provide a good explanation for why recessions occur and why they can last for long periods of time.
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The Top Corporation has ending inventory of $482,750, and cost of goods sold for the year just ended was $4,209,580. a. What is the inventory turnover? (Do not round intermediate calculations and roun
The approximate inventory turnover for The Top Corporation is 8.71.
To calculate the inventory turnover, we can use the following formula:
Inventory Turnover = Cost of Goods Sold / Average Inventory
To find the average inventory, we can use the formula:
Average Inventory = (Beginning Inventory + Ending Inventory) / 2
Since the beginning inventory is not provided in the question, we cannot calculate the exact inventory turnover. However, if we assume that there is no change in inventory throughout the year, we can use the ending inventory as the average inventory.
Average Inventory = Ending Inventory = $482,750
Now we can calculate the inventory turnover:
Inventory Turnover = Cost of Goods Sold / Average Inventory
Inventory Turnover = $4,209,580 / $482,750
Inventory Turnover ≈ 8.71
Therefore, the approximate inventory turnover for The Top Corporation is 8.71.
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given the production function q = 4lk, what is the marginal product of labor when capital is fixed at 25?
The marginal product of labor when capital is fixed at 25 is 4.
The production function q = 4lk represents the relationship between the quantity of output (q) and the inputs of labor (l) and capital (k). In this production function, the coefficient 4 represents the productivity of labor.
To find the marginal product of labor, we take the derivative of the production function with respect to labor (l). Since capital is fixed at 25, we treat it as a constant.
Taking the derivative of the production function with respect to labor, we get:
∂q/∂l = 4k
Since capital is fixed at 25, the marginal product of labor becomes:
∂q/∂l = 4(25) = 100
Therefore, the marginal product of labor when capital is fixed at 25 is 100.
The marginal product of labor when capital is fixed at 25 is 4. This means that for each additional unit of labor employed, the output will increase by 4 units, holding capital constant.
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You have an initial wealth of $1,000, and face a 25 percent probability of losing $500 of it. You can buy insurance to avoid this risk. Your utility function is U(W) = ln(W).What is the maximum you are willing to pay to avoid this risk?
The maximum amount that the person would be willing to pay to avoid the risk is $155.67.
Given:
Initial wealth is $1000
Probability of losing $500 is 25%
Insurance can be bought
Utility function is U(W) = ln(W)
We need to determine the maximum amount that the person would be willing to pay to avoid the risk.
So, let us solve this problem step by step.
Let the amount that the person would be willing to pay for insurance be x.
Different cases of wealth are:
Wealth = 1000 - x.
Probability of losing the bet is 25%.
Wealth would then become 1000 - x - 500.
There is a 75% probability of winning the bet.
Wealth would remain at 1000 - x.
To calculate the expected wealth after buying the insurance, the following formula can be used:
(0.75) * ln(1000 - x) + (0.25) * ln(1000 - x - 500)
As the utility function is U(W) = ln(W),
the expected utility function would become:
(0.75) ln(1000 - x) + (0.25) ln(1000 - x - 500)
We need to maximize the above expression with respect to x using the first-order condition:
d/dx [(0.75) ln(1000 - x) + (0.25) ln(1000 - x - 500)]
= 0(0.75) (1/(1000 - x)) (-1) + (0.25) (1/(1000 - x - 500)) (-1) (-1)
= 0.75/(1000 - x) + 0.25/(1000 - x - 500) = 0
Dividing the above equation by 0.25 and solving for x, we get:
x = 155.67
So, the maximum amount that the person would be willing to pay to avoid the risk is $155.67.
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Wage = 6.70 +1.25 Union Member +2.57 Years Education If the standard error for years of education is 1.31, then what is the p-value? 3 .00 01 02 .03 04 05 06 .07 08 09 5199 5239 .5279 5319 .5359 5596
The answer is option d. 0.03. Wage = 6.70 +1.25 Union Member +2.57 Years Education, and the standard error for years of education is 1.31Let's recall the formula to calculate p-value.
The formula is:p-value = P(T > t) where T is the t-statistic and t is the calculated value of the t-test. If the calculated value of t is negative, then the P(T < t).We can find t by dividing the coefficient by the standard error. The coefficient of Years Education is 2.57. Therefore,t = (2.57 / 1.31) = 1.96 (approx)Now, for calculating the p-value, we have to use the t-distribution table for two-tailed test as the alternative hypothesis states that the coefficient is not equal to zero.
The degrees of freedom for the test is n-2. Now, we need the p-value for the t-statistic which is approximately 1.96 and the degrees of freedom are (n - 2).If we look at the t-distribution table for 2-tailed test at degrees of freedom 48, we can find the t-value which is approximately equal to 2. This is because the value of t = 1.96 falls between 1.984 and 2.001. Since we need the p-value for a 2-tailed test, we find the value of 2 - |1.96| = 0.04. This value corresponds to 0.03 in the t-distribution table. Therefore, the p-value is 0.03 (approximately).Thus, the answer is option d. 0.03.
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Weak ringgit a boon for exporters but higher raw material prices could negate positives By Seah Eu Hen, edited by Ahmad Naqib Idris- theedgemarkets.com April 28, 2022 08:00 am +08 KUALA LUMPUR (April 28): While exporters are usually touted as the clear winners of a weak Malaysian ringgit, it is not as clear-cut this time around as companies also experience a rise in raw material prices, amid the recent chain of unprecedented events. Despite the recent rally in crude palm oil (CPO) futures and Brent crude oil prices to near-record highs which would usually be positive for a net commodity exporter like Malaysia - the ringgit cracked under pressure against the US dollar and the Singapore dollar. S The ringgit hit 4.32 against the greenback - its weakest level since May 2020 - last Friday (April 22), and depreciated to a record low of 3.1766 against the Singapore dollar on Tuesday (April 26) amid the hawkish sentiment ahead of the US Federal Reserve's (Fed) Federal Open Market Committee (FOMC) meeting and the economic slowdown in China. At the time of writing, the ringgit traded at 4.3585 against the US dollar and 3.1621 against the Singapore dollar. Although a weak currency could be a boon for exporters and bane for importers, market observers said that the current situation - exacerbated by unprecedented events such as the Covid-19 pandemic and global supply chain disruption will not be the same as the aftermath of previous inflation cycles. Areca Capital Sdn Bhd chief executive officer (CEO) Danny Wong said that exporters with products or services quoted in US dollar such as glovemakers, electrical and electronics (E&E) players, petrochemical, commodities and furniture producers, would benefit from higher revenues and better margins as their products become more competitive with a "cheaper" ringgit. - Similarly, Hong Leong Investment Bank Research (HLIB) head of retail research Ng Jun Sheng also said that investors should look at semiconductor companies, electronics manufacturing services (EMS) providers, electrical & electronics (E&E) players, wooden furniture manufacturers and plastic packaging companies. However, he pointed out that the weak ringgit could cancel out the potential positives for exporters, as raw material prices have also increased. "[The weak ringgit] may not really benefit exporters because the raw material prices which have gotten very expensive have driven up input costs. [The exporters] might not benefit as much compared to the previous inflation cycle around 2015/2016. "The inflation is a lot more serious this time around. Even though the selling price is high, the input prices are even higher. On a net-net basis, the question would be whether selling prices would prevail over the higher input costs, Ng said. Meanwhile, those that do not stand to benefit from a weaker ringgit include companies in the automotive, consumer and construction sectors, he added. Another analyst that declined to be named said companies in the construction, property and consumer sectors could see some margin compression amid the higher input costs and supply chain disruption. "The supply chain disruption is a different topic which affects their revenue recognition. However, purely on forex alone, the impact should be net positive, but we think that the ringgit will strengthen by the end of 2022, so any tabulations [for winners and losers] is premature given the ringgit's volatility currently," the analyst said. Meanwhile, Areca Capital's Wong said investors should watch out for companies with US dollar- denominated borrowings such as equipment-heavy companies, which would need to pay more to service their debt. "However, cash-rich companies with foreign assets/cash would have better valuation gains, especially those companies with foreign subsidiaries in the US and Singapore. Companies whose investment portfolios have overseas exposure such as banks will also have better returns when i marked-to-market," Wong highlighted. Nonetheless, Wong believes that the weakening of the ringgit and the weakness in Malaysian equities and fixed income markets may attract some foreign fund flow.
The reason why Wong's statement suggests that the weakening of the ringgit and the weakness in Malaysian equities and fixed-income markets may attract foreign fund flows is due to more investment opportunities.
Why would a weakening of a currency be attractive ?When a country's currency weakens, it can make the country's assets, such as equities and fixed-income instruments, more attractive to foreign investors. The depreciation of the ringgit can lower the cost of investing in Malaysian assets, potentially presenting buying opportunities for foreign investors seeking higher returns.
Foreign investors may see the weakening of the ringgit as an opportunity to acquire assets at a more favorable valuation.
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The question is:
Regarding Wong's statement regarding the weakening of the ringgit and the weakness in Malaysian equities and fixed-income markets that attract foreign fund flows, explain why this would be the case?
An inexperienced accountant for Sunland Corporation showed the following in the income statement: net income $240,750 and unrealized gain on available-for-sale securities (before taxes) $92,400. The unrealized gain on available-for-sale securities is subject to a 25% tax rate Prepare a correct statement of comprehensive income. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) SUNLAND CORPORATION Statement of Comprehensive Income Income before income taxes Income tax expense Unrealized holding gain on available-for-sale securities 240,750
The statement of comprehensive income is presented below: SUNLAND CORPORATION Statement of Comprehensive Income Income before income taxes $333,150Income tax expense (25% of $92,400) (23,100)Net income $310,050Unrealized holding gain on available-for-sale securities, net of taxes $69,300.
Explanation: The calculation of the income statement of Sunland Corporation is as follows: Net income = $240,750Unrealized gain on available-for-sale securities (before taxes) = $92,400Unrealized gain on available-for-sale securities (after taxes) = $92,400 - ($92,400 x 25%) = $69,300Income before income taxes = Net income + Unrealized gain on available-for-sale securities (after taxes)Income before income taxes = $240,750 + $69,300 = $310,050Income tax expense = Unrealized gain on available-for-sale securities (before taxes) x Tax rate Income tax expense = $92,400 x 25% = $23,100Therefore, the statement of comprehensive income is presented above.
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when hollywood studios agreed to cooperate on buying movie film from kodak, this is an example of
This is an example of industry collaboration or cooperation. Hollywood studios joining forces to purchase movie film from Kodak demonstrates a collective effort within the industry to support and sustain a specific aspect of filmmaking. By working together, the studios can negotiate better deals, ensure a steady supply of film, and maintain the traditional filmmaking process that relies on physical film stock.
In the film industry, collaboration among studios is common to address shared challenges or pursue common interests. In this case, the agreement to buy movie film from Kodak represents a collaborative effort to support a specific aspect of the filmmaking process. By pooling their resources and combining their purchasing power, the studios can negotiate favorable terms with Kodak, ensuring a reliable and consistent supply of film for their productions. This cooperative approach helps the studios maintain the traditional filmmaking process that relies on physical film stock and demonstrates industry-wide support for Kodak's film manufacturing business.
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