Answer:
The expected return of the portfolio is 0.1256.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
State Probability Stock A Return Stock B Return Stock C Return
Boom 0.32 0.22 0 -0.07
Bust 0.68 0.02 0.21 0.24
What is the expected return of a portfolio that has invested $9,805 in Stock A, $18,289 in Stock B, and $6,201 in Stock C? (Hint: calculate weights of each stock first). Enter the answer with 4 decimals (e.g. 0.1234).
The explanation of the answer is now given as follows:
Step 1. Calculation of weights of each stock
Total investment = Amount invested in A + Amount invested in B + Amount invested in C = $9,805 + $18,289 + $6,201 = $34,295
Weight of stock A = Amount invested in A / Total investment = $9,805 / $34,295 = 0.2859
Weight of stock B = Amount invested in B / Total investment = $18,289 / $34,295 = 0.5333
Weight of stock C = Amount invested in C / Total investment = $6,201 / $34,295 = 0.1808
Step 2. Calculation of expected return of stock
Expected return of a stock = (Probability during Boom * Stock return during Boom) + (Probability during Bust * Stock return during Bust)
Expected return of stock A = (0.32 * 0.22) + (0.68 * 0.02) = 0.0840
Expected return of stock B = (0.32 * 0) + (0.68 * 0.21) = 0.1428
Expected return of stock C = (0.32 * (-0.07)) + (0.68 * 0.24) = 0.1408
Step 3. Calculation of expected return of the portfolio
Expected return of the portfolio = (Weight of stock A * Expected return of stock A) + (Weight of stock B * Expected return of stock B) + (Weight of stock C * Expected return of stock C) = (0.2859 * 0.0840) + (0.5333 * 0.1428) + (0.1808 * 0.1408) = 0.1256
Therefore, the expected return of the portfolio is 0.1256.
In 2007, Gillette saw an opportunity to capture the market of 500 million Indians who used double edge razors with no protection between the blade and the skin. Gillette sought to make an inexpensive and safe disposable razor. Their first product, The Vector failed because it always clogs. What do you think went wrong
Answer:
Gillette in India
The failure of the Vector was caused by the fact that Indian men have longer and thicker hair, which the lack of earlier research in the targeted demographic segment did not discover.
Explanation:
Since Indian men have longer and thicker hair than the local consumers of Gillette's razor products in America, an earlier research would have uncovered the fact. Thereafter, the discovery would have been incorporated into the design and production of Vector for the Indian market. No wonder, with its Mach 3 Turbo razor, Gillette overcame its initial inertia and handicap and made a success of the razor business in India.
What is the present value of a perpetuity of $20,000 per month, if the first cash flow will be received exactly nine months from now, and the stated rate is 12% APR compounded monthly
Answer:
$1,828,679.65
Explanation:
The computation of the present value of the perpetuity is shown below;
The Present value of the perpetuity is
But before that as on the start of the perpetuity is determined using the formula,
= Perpetuity Amount ÷ Monthly rate
= $20,000 ÷ 1%
= $2,000,000
Now
Present value today is
= Present value of perpetuity as on the start of the perpetuity ÷ (1 + Monthly rate)^Months
= $2,000,000 ÷ (1 + 1%)^9
= $2,000,000 ÷ 1.093685273
= $1,828,679.65
Great Wall Pizzeria issued 10-year bonds one year ago at a coupon rate of 6.3 percent. If the YTM on these bonds is 8.5 percent, what is the current bond price
Answer:
the current bond price is $865.38
Explanation:
The computation of the current bond price is shown below:
Given that
NPER is = 10 - 1 = 9
RATE is 8.5%
We assume the future value be $1,000
SO, the coupon i.e. PMT is = $1,000 × 6.3%
the formula is shown below:
=-PV(RATE,NPER,PMT,FV,TYPE)
After applying the above formula, the current bond price is $865.38
Customers arrive at a suburban ticket outlet at the rate of 14 per hour on Monday mornings. This can be described by a Poisson distribution. Selling the tickets and providing general information takes an average of 3 minutes per customer, and varies exponentially. There is 1 ticket agent on duty on Mondays. Determine each of the following:______________(A) system utilization.(B) average number in line.(C) average time in line.(D) average time in the system.
Answer:
Following are the solution to the given points:
Explanation:
When the arrival rate matches the distribution of Poisson, the rate of delivery varies exponentially as well as the server exists. The paradigm, therefore, is W/M/I, an exponential time interval concept, and one server.
Arrival rate [tex](\lambda) = 14\ per\ hour[/tex]
Service rate[tex]( \mu) =\frac{3\ minutes}{customer} = \frac{60 minutes (1 hour)}{3 minutes}= 20 \ \frac{customers}{hour}[/tex]
For point A:
System utilization[tex]=\frac{\lambda}{\mu}=\frac{14}{20}=0.7[/tex]
For point B:
Average number in line:
[tex](L_q )=\frac{\lambda^2}{\mu \times (\mu-\lambda)}\\\\=\frac{14^2}{20\times (20-14)}\\\\= 1.633[/tex]
For point C:
Average time in line:
[tex](W_q)=\frac{L_q}{\lambda}\\\\=\frac{1.633}{14} \ hours\\\\=\frac{1.633}{14} \times 60 \ minutes\\\\= 7\ minutes[/tex]
For point D:
Average time in the system:
[tex](W_s)=w_q+\frac{1}{\mu}\\\\=7\ minutes + \frac{1}{20} \ hours\\\\=7 \ minutes + \frac{60}{20} \ hours\\\\= 7 \ minutes + 3\ minutes\\\\= 10 \ minutes\\[/tex]
3. How would you evaluate IMAX's international expansion to date?
Answer:
yes
Explanation:
yes
The best evaluation of the expansion of the IMAX is that there is a faster spread of the business internationally than domestically.
What is a Business Expansion?This refers to the period of growth peak when a business has to seek extra options to develop and generate more profit.
Hence, we can see that from the expansion of IMAX, there is the creation of more theatres in India as they have entered a business partnership with Inox to bring the total number of contracted theatres in India to 40
Read more about business expansion here:
https://brainly.com/question/24553900
Asteroid Industries accumulated the following cost information for the year: Direct materials $ 15,100 Indirect materials 3,100 Indirect labor 7,600 Factory depreciation 11,900 Direct labor 36,100 Using the above information, total factory overhead costs equal:
Answer:
the total factory overhead cost is $22,600
Explanation:
The computation of the total factory overhead is shown below:
Factory overhead is
= Indirect material + Indirect labour + Factory depreciation
= $3,100 + $7,600 + $11,900
= $22,600
basically we added the above three items so that the total factory overhead cost could come
hence, the total factory overhead cost is $22,600
26 . Alpha Co. can produce a unit of Beta for the following costs: Direct Material $4 Direct Labor 12 Overhead 20 TOTAL $36 An outside supplier offers to provide Alpha with all the Beta units it needs at $30 per unit. If Alpha buys from the supplier, Alpha will still incur 50% of its overhead. The proper decision and the total relevant cost to compare with the $30 purchase price are:
Answer:
b. Make, $26
Explanation:
Options are "A. Buy, $26. B. Make, $26. C. Buy, $36. D. Make, $36 E. Buy, $40"
Calculation of total relevant cost
Direct materials $4
Direct labor $12
Overhead $10 ($20 * 50%)
Total relevant cost $26
Since the relevant cost is $26 when making, so the proper decision and the total relevant cost to compare with the $30 purchase price are "Make, $26".
Tammy is going on a 2-week vacation overseas. She is planning on taking two credit cards, and has notified her credit card issuers that she will be traveling with those credit cards. What should she do with her other credit cards while she is gone
Answer: Keep them safe in a deposit box
Explanation:
Since Tammy is going on a 2-week vacation overseas and she is planning on taking two credit cards, the thing to do with the other credit cards while she is gone is to keep them safe in a deposit box.
There's no need for him to cancel the cards. Also, the cards are not stolen and should not be reported stolen and he shouldn't give them to someone else in order to prevent fraud. He should keep the cards safely till he comes back.
21. Website: https://www.responsibletravel.com/
Responsibletravel.com (RT) was launched in April 2001, with backing from Anita Roddick (the
founder of the Body Shop). It is the first and largest business promoting and selling responsible
and eco-travel globally. RT likes to get the inside track on places, to discover travel secrets away
from the tourist crowds. It has found specialists who know places intimately to run the tours help
you to travel like a local'. RT wants to ensure the place its customers travel to remain special
unspoilt by tourism.
RT bases its entire operation on a socially and ecologically sustainability model that aims to help
rein invent the tourism industry for the long-term benefit of local people, the environment,
travelers and the tourism industry. The entire premise of RT's business is to market and distribute
more responsible holidays, thereby creating more jobs for local people, greater income for local
people and increased benefits for conservation, whilst at the same time minimizing negative
impacts on local environments and cultures.
A) Formulate a definition for the term 'social sustainability in your own words (RAK) *
Suppose that 57% of all people with credit records improve their credit rating within three years. Suppose that 22% of the population at large have poor creditratings within three years. What percentage of then people who will improve their credit records within the next three years are the ones who currently have good credit ratings? ratings, and of those only 25% will improve their credit
Answer:
(a) The percentage of people currently have poor credit ratings and will improve their credit records within the next three years is 12.54%.
(b) The percentage of the people who will improve their credit records within the next three years are the ones who currently have good credit ratings is 44.46%.
Explanation:
Note: This question is not properly arranged. It is therefore, properly rearranged before answering the question as follows:
Suppose that 57% of all people with credit records improve their credit ratings within three years. Suppose that 22% of the population at large have poor credit records, and of those only 25% will improve their credit ratings within three years. (a) What percentage of people currently have poor credit ratings and will improve their credit records within the next three years? (b) What percentage of the people who will improve their credit records within the next three years are the ones who currently have good credit ratings?
The explanation of the answers is now provided as follows:
Based on the question, we have:
Percentage that improve credit rating = 57%
Percentage that do NOT improve credit rating = 100% - Percentage that improve credit rating = 100% - 57% = 43%
Percentage with poor credit rating = 22%
Percentage with good credit rating = 100% - Percentage with poor credit rating = 100% - 22% = 78%
Therefore, we have:
(a) What percentage of people currently have poor credit ratings and will improve their credit records within the next three years?
Percentage with poor credit rating that will improve credit records = Percentage with poor credit rating * Percentage that improve credit rating = 57% * 22% = 12.54%
Therefore, the percentage of people currently have poor credit ratings and will improve their credit records within the next three years is 12.54%.
(b) What percentage of the people who will improve their credit records within the next three years are the ones who currently have good credit ratings?
Percentage with good credit rating that will improve credit rating = Percentage that improve credit rating * Percentage with good credit rating = 57% * 78% = 44.46%
Therefore. the percentage of the people who will improve their credit records within the next three years are the ones who currently have good credit ratings is 44.46%.
What should be the function of money? What do you mean by M2?
subject Macroeconomics, please please help...
Money is any object in which you can exchange for goods or services. We consider this currency. Money is also a store of value so that you can get those goods and services at a later time (so you don't have to immediately use up the currency right away if you don't need to).
If at some future date, the unit of money isn't able to purchase as much as it used to, then we say that inflation has occurred. For example, if a loaf of bread costs $1 today but then $5 ten years from now, then we say inflation has kicked in.
-------------------------
Before we talk about M2, it helps to start with M0. That's a zero and not the letter 'oh'. In economics, M0 is the total collection of all cash (bills and coins) that are in circulation. This means we're just talking about physical things people can touch. Building to M1, it involves everything M0 talks about plus things like travelers checks and demand deposits. So if you're talking about M1, then you involve all physical cash as well.
Then finally moving to M2, it involves everything M0 and M1 does, plus savings accounts and time deposits. By "time deposits", I mean things like mutual funds and money market accounts. Basically things you may hear about when talking about wall street.
In short, M2 involves all physical cash plus other electronic stores of value (this is a fairly vague definition but it may work in many settings). It does not involve large time deposits as that is what M3 handles.
A company provided the following GAAP and non-GAAP information:
Income Statement (GAAP)
($ in millions) 2019A
Revenue 732
Cost of goods sold (excl. SBC) 149
Gross profit 583
Research & development 121
Other operating expenses 406
Operating profit 56
Interest expense 145
Other expenses 17
Pretax profit (106)
Taxes (15)
Net income (91)
Non-GAAP Operating profit
($ in millions) 2019A
GAAP Operating profit 56
Amortization of purchased intangible assets 6
Stock based compensation 51
Restructuring expenses 184
non-GAAP operating profit 297
non-GAAP Net income
($ in millions) 2019A
GAAP Net income (91)
Amortization of purchased intangible assets 6
Stock based compensation 51
Restructuring expenses 184
Losses on investments 14
Tax impact of non-GAAP items (65)
non-GAAP Net income 99
Stock based compensation
($ in millions) 2019A
Cost of goods sold 16
Research & development 12
Other operating expenses 23
Stock based compensation 51
Amortization of purchased intangible assets
($ in millions) 2019A
Cost of goods sold 5
Other operating expenses 1
Amortization of purchased intangible assets 6
Cash flow statement
($ in millions) 2019A
GAAP net income 346
Depreciation and amortization 108
Stock based compensation 51
Changes in working capital 8
Other 9
Cash from operations 522
The company above defines adjusted EBITDA is defined as operating profit before depreciation and amortization and excluding non-GAAP items. Based on the information provided, what is 2019 adjusted EBITDA?
a. $414 million
b. $405 million
c. $399 million
d. $170 million
Answer: $399 Million
Explanation:
Based on the information provided, the 2019 adjusted EBITDA will be:
Operating profit = $56
Add: Depreciation and amortization = $108
Add: Stock based compensation = $51
Add: Restructuring expenses = $184
Adjusted EBITDA = $399 million
Miguel consumes only art classes and anthropology classes. Miguel prefers a bundle of art classes and anthropology classes (with not necessarily equal to ) over a bundle of art classes and anthropology classes if (and only if) and . If and then Miguel prefers , over , . If neither case is true, he is indifferent between the two bundles.
a. Miguel's preferences satisfy the completeness assumption
b. Miguel's preferences satisfy the transitivity assumption
c. Miguel's preferences satisfy the non-satiation assumption
Answer: A. Miguel's preferences satisfy the completeness assumption
Explanation:
Based on the information given, Miguel's preferences satisfy the completeness assumption.
According to the completeness axiom, an individual or firm must be able to make a choice whether the economic agent is either indifferent to, or maybe prefers, a particular set of options over other options.
This implies that consumers can rank the possibilities as better, good, bad, worse etc and an indifference curve can be assigned.
Charles owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a bottle of water rises as he pumps more. Here is the cost he incurs to produce each bottle of water:
Answer:
Cost of each bottle of water is $7.
Explanation:
This is the case for economies of scale. When Charles produce 1 bottle of water, it costs him $1 per bottle, when 8 bottles are produced it costs him $7. The cost per bottle of water reduces as units increases.
During 2021, its first year of operations, Pave Construction provides services on account of $160,000. By the end of 2021, cash collections on these accounts total $110,000. Pave estimates that 25% of the uncollected accounts will be uncollectible. In 2022, the company writes off uncollectible accounts of $10,000. Required:1. Record the adjusting entry for uncollectible accounts on December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)2-a. Record the write-off of accounts receivable in 2022. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)2-a. Record the write-off of accounts recelvable In 2022 (if no entry is required for a particular transaction/event, select2-b. Calculate the balance of Allowance for Uncollectible Accounts at the end of 2022 (before adjustment in 2022).2-b. Calculate the balance of Allowance for Uncollectible Accounts at the end of 2022 (before adjustment In 2022) Beginning B3-a. Assume the same facts as above but assume actual write-offs in 2022 were $15,000. Record the write-off of accounts receivable in 2022. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)3-a. Assume the same facts as above but assume actual write-offs In 2022 were $15,000. Record the write-off of accounts recel3-b. Assume the same facts as above but assume actual write-offs in 2022 were $15,000. Calculate the balance of Allowance for Uncollectible Accounts at the end of 2022 (before adjustment in 2022).
Answer:
1. December 31, 2021
Dr Uncollectible amounts $12,500
Cr Allowance uncollectible amounts $12,500
2a. Dr Allowance uncollectible amounts $10,000
Cr Accoutns receivables $10,000
2b $2,500
Explanation:
1. Preparation to Record the adjusting entry for uncollectible accounts on December 31, 2021.
December 31, 2021
Dr Uncollectible amounts $12,500
Cr Allowance uncollectible amounts $12,500
[($60,000-$110,000)*25%]
(To record allowance)
2a. Preparation of the journal entry to Record the write-off of accounts receivable in 2022
Dr Allowance uncollectible amounts $10,000
Cr Accoutns receivables $10,000
(To Record the write-off of accounts receivable in 2022)
2b. Calculation to determine the balance of Allowance for Uncollectible Accounts at the end of 2022
Balance of the allowance accounts=[ 60,000-110,000)*25%] -$10,000
12,500 - 10,000 = 2,500
allowance uncollectible amounts 15,000 debit
accoutns receivables 15,000 credit
--to record write-off 2022--
Solve for the unknown interest rate in each of the following (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.):
Present Value Years Interest Rate Future Value
181 5 $ 317
335 17 1,080
48,000 13 185,382
40,353 30 531,618
Answer:
11.86%
7.13%
19.95%
8.97%
Explanation:
interest rate = [tex]\frac{future value}{present value}}^{\frac{1}{n} } - 1[/tex]
(317/181)^ (1/5) - 1 = 11.86%
1080/335)^(1/17) - 1 = .13%
(185,382/48,000)^(1/13) - 1 = 19.95%
(531,618 / 40,353)^(1/30) - 1 = 8.97%
The interest rate in the 1 case is 5.01%, 2 case is 5.79%, 3 case is 8.05%, 4 case is 10.60%.
What is interest rate?An interest rate is the amount of interest owed per period, as a quotient of the amount lent, deposited, or borrowed.
Computation of the interest rates :The formula for future value is:
[tex]\text{FV}= \text{PV} \ (1+r)^n[/tex]
where,
PV=present value
r=interest rate
n =number of periods/ years
FV = future value.
Then, the formula for finding r is :
[tex]\text{FV}= \text{PV} \ (1+r)^n\\\\r= (\dfrac{\text{FV}}{\text{PV}})^\dfrac{1}{\text{n}-1}[/tex]
case1:put the above formula in case 1 we get:
[tex]r= (\dfrac{\text{\$231}}{\text{\$190}})^\dfrac{1}{4}-1}\\\\r= (\dfrac{\text{\$231}}{\text{\$190}})^{0.25-1}\\\\r=(1.21578947)^{0.25-1}\\\\r=1.05006116 -1\\\\r=0.05006116\times100\\\\r=5.01%[/tex]
case2:Put the above formula in case 2 we get:
[tex]r= (\dfrac{\text{\$854}}{\text{\$310}})^\dfrac{1}{18}-1}\\\\r= (\dfrac{\text{\$854}}{\text{\$310}})^{0.0555-1}\\\\r=(2.75483871)^{0.0555-1}\\\\r=1.05785304 -1-1\\\\r=0.05785304\times100\\\\r=5.79%.[/tex]
case3:Put the above formula in case 3 we get:
[tex]r= (\dfrac{\text{\$1,48,042}}{\text{\$34,000}})^\dfrac{1}{19}-1}\\\\r= (\dfrac{\text{\$1,48,042}}{\text{\$34,000}})^{0.0526-1}\\\\r=(4.35417647)^{0.0526-1}\\\\r=1.08045444 -1\\\\r=0.08045444\times100\\\\r=8.05%[/tex]
case4:Put the above formula in case 4 we get:
[tex]r= (\dfrac{\text{\$412,862}}{\text{\$36,261}})^\dfrac{1}{25}-1}\\\\r= (\dfrac{\text{\$412,862}}{\text{\$36,261}})^{0.04-1}\\\\r=(12.4127958)^{0.04-1}\\\\r=1.10599913 -1\\\\r=0.10599913\times100\\\\r=10.60%.[/tex]
Learn more about interest rate, refer:
https://brainly.com/question/4626564
Ernest invents a novel, useful, nonobvious product. He:____.
a. must apply for a patent within one year of selling the product commercially.
b. may receive patent protection for two years by filing a simpler, shorter, cheaper provisional patent application while he is working on his complex, regular patent application.
c. is entitled to a patent over someone else who invents the same product if he is the first to invent it.
d. may sell his product for up to five years to see how well it sells before going through the complex process of filing a patent application with the PTO Office.
Answer:
a. must apply for a patent within one year of selling the product commercially.
Explanation:
As the product is the novel and also useful at the same time so he himself wants to try for the commercial purpose for reaping the benefits and the same should be used for a patent within one year for selling the product commercially manner
So as per the given situation, the option a is correct
And, the rest of the options seems incorrect
A machine that cost $644,000 has an estimated residual value of $28,000 and an estimated useful life of 28,000 machine hours. The company uses units-of-production depreciation and ran the machine 8,000 hours in year 1, 10,000 hours in year 2, and 7,000 hours in year 3. Calculate its book value at the end of year 3.
Answer:
94,000
Explanation:
Activity method based on output = (output produced that year / total output of the machine) x (Cost of asset - Salvage value)
( $644,000 - $28,000) / 28,000 = 22
1 = 22 x 8000 = 176,000
2= 22 x 10,000 = 220,000
3 22 x 7000 = 154,000
Book value = cost of asset - accumulated depreciation
$644,000 - (176,00 + 220,000 + 154,000)
Type an I beside the items that are used for state income and an E for those that are state expenses.
public welfare i or e
insurance trusts i or e
sales i or e
corporate income i or e
debt interest i or e
education i or e
Answer:
e, e ,i, i, i, e is the order from top to bottom
Public welfare -e, insurance trusts -e, sales- i, corporate income- i, debt interest- i, education- e, are the type a beside the items that are used for state income and an E for those that are state expenses.
What is state expenses?
The majority of state and local government expenses is classified into different categories: elementary and secondary education.
Public welfare which involves most Medicaid spending, postsecondary learning, health and hospitals, highways and roads, and criminal justice which involves police, corrections, and courts spending.
Thus, it is mentioned above.
For more information about state expenses, click here:
https://brainly.com/question/15849902
#SPJ2
The following labor standards have been established for a particular product: Standard labor-hours per unit of output 8.6 hours Standard labor rate $ 15.80 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 10,700 hours Actual total labor cost $ 167,455 Actual output 1,500 units What is the labor rate variance for the month
Answer:
the labor rate variance for the month is $1,605 favorable
Explanation:
The computation of the labor rate variance for the month is shown below:
= Actual labor cost - (standard rate × actual hours)
= $167,455 - ($15.80 × 10,700 hours)
= $167,455 - $169,060
= $1,605 favorable
hence, the labor rate variance for the month is $1,605 favorable
Journalize the six December 31 adjusting entries for Cole Designs that adjusted the accounts to arrive at the financial statements in the Adjusted Financial Statements panel. Refer to the Chart of Accounts for exact wording of account titles. Journalize each adjustment as a separate entry.
Cole Designs
Income Statement
For the Year Ended December 31, 2018
Fees earned $77,000.00
Expenses:
Wages expense $47,200.00
Supplies expense 3,515.00
Insurance expense 2,900.00
Depreciation expense 2,000.00
Total expenses 55,615.00
Net income $21,385.00
CHART OF ACCOUNTS
Cole Designs
General Ledger
ASSETS
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Equipment
Accumulated Depreciation-Equipment
LIABILITIES
Wages Payable
Unearned Fees
EQUITY
Ann Cole, Capital
Ann Cole, Drawing
REVENUE
Fees Earned
EXPENSES
Wages Expense
Supplies Expense
Insurance Expense
Depreciation Expense
Answer:
1- Accounts Receivable (Dr.) $500
Fees Earned (Cr.) $500
2- Unearned Fees (Dr.) $4,500
Accounts Receivable (Cr.) $4,500
3- Insurance Expense (Dr.) $1,600
Prepaid Insurance (Cr.) $1,600
4- Depreciation Expense (Dr.) $1,700
Accumulated Depreciation (Cr.) $ 1,700
5- Office Supplies Expense (Dr.) $3,530
Office Supplies (Cr.) $3,530
6- Wages Expense (Dr.) $1,850
Wages Payable (Cr.) $1,850
Explanation:
Adjusting entries are prepared at the month end to adjust the transaction which occur after the recording or if there is any change in already recorded transaction. The liabilities and assets accounts are adjusted at the month end to reflect true expense or liability.
U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results: U.S. LDC Sales (units) 98,000 19,980 Labor (hours) 20,600 15,600 Raw materials (currency) $ 19,950 19,750 (FC) Capital equipment (hours) 59,250 5,600 *Foreign Currency unit a. Calculate partial labor and capital productivity figures for the parent and subsidiary. (Round your answers to 2 decimal places.) b. Compute the multifactor productivity figures for labor and capital together. (Round your answers to 2 decimal places.) c. Calculate raw material productivity figures (units/$ where $1
Answer:
a. Productivity = Sales /Labour Hour
U.S
Productivity = 98000 units/20600 hours
Productivity = 4.76
LDC
Productivity = 19980 units/15600 hours
Productivity = 1.28
Capital Productivity = Sales / Capital Equipment (Hours)
U.S
Capital Productivity = 98000 units/59250 hours
Capital Productivity = 1.65
LDC
Capital Productivity = 19980 units/5600 hours
Capital Productivity = 3.57
b. Multi-factor Productivity = Total Output (Sales) / (Labour Hours + Capital Equipment Hours)
U.S
Multi-factor Productivity = 98000 units/(20600+59250)
Multi-factor Productivity = 98000 units / 79850 hours
Multi-factor Productivity = 1.23
LDC
Multi-factor Productivity = 19980 units / (15600+5600)
Multi-factor Productivity = 19980 units / 21200 hours
Multi-factor Productivity = 0.94
c. Raw Material Productivity = Sales / Raw Materials Currency
U.S
Raw Material Productivity = 98000 units/$19950
Raw Material Productivity = 4.91
LDC
Raw Material Productivity = 19980 units / (19750 /10)
Raw Material Productivity = 19980 units / $1975
Raw Material Productivity = 10.12
Owner's equity at the start of the period is $35,000; net income for the period is $30,000; the total investments by the owner is $15,000; and total withdrawals by the owner is $5,000. The owner's equity at the end of the period is a.$75,000. b.$85,000. c.$80,000. d.$40,000.
Answer:
The answer is A
Explanation:
Balance b/f - $35,000
Add: Net income - $30,000
Add: Total investment - $15,000
Minus: owner's withdrawal- ($5,000)
Total-. $75,000
Therefore, the owner's equity at the end of the period is $75,000(option A)
Assume that Tree Co. has the ability to discontinue both product lines and rent the factory space previously used for the production of Leaves and Bark. The factory space for Leaves can be rented out for $25,000 a year, and the factory space for Bark can be rented for $27,000 a year. Which product lines should Tree Co. discontinue and rent out instead?
Answer:
Both Leaves and Bark should be discontinued and rented out
Explanation:
Calculation to determine whether Both Leaves and Bark should be discontinued and rented out
LEAVES BARK
Sales eliminated $(30,000)$(50,000)
Variable costs eliminated $10,000 $25,000
Net loss from discontinuation($20,000)($25,000)
($-30,000+$10,000=-$20,000)
(-$50,000+$25,000=-$25,000)
Rental income gained $25,000 $27,000
Increase in operating income $5,000 $2,000
($25,000-$20,000=$5,000)
($27,000-$25,000=$2,000)
Therefore based on the above calculation both Leaves and Bark SHOULD BE DISCONTINUED reason been that the NET LOSS for each is LESSER than the annual rental income.
The English economist David Ricardo argued that Group of answer choices None of the answers is correct grain prices were high because land rents were low. grain prices were high because land rents were high.
Answer:
land rents were high because grain prices were high..
Explanation:
grain prices were high because land rents were high.
land rents were high because grain prices were high.
grain prices were high because land rents were low.
land rents were high because grain prices were low.
none of the above
David Ricardo was a classical economist known for various economic theory. Some of his theories include :
Labour Theory of ValueRicardian EquivalenceTheory of comparative advantageTheory of rentTheory of rents
David Ricardo defined rest as the part of the produce of an agricultural land that is paid to the landowner for the use of the land. He postulated that benefits of an increase in prices of grain accrue to land owners in the form of rent
He used this theory to answer a question that arose during the Napoleonic wars (18.05-1815) when there was a great increase in corn and land prices. The question was : Did the rise in land prices raise the price of corn or did the high price of corn increase the demand for land and led to an increase in the price of land ?
Which one of the following items is not generally used in preparing a statement of cash flows? Group of answer choices Adjusted trial balance Comparative balance sheets Current income statement Additional information
Answer:
Adjusted trial balance
Explanation:
In financial accounting, statement of cash flow can be regarded as a financial statement which give details of how changes that occur in balance sheet accounts as well as income have effect on cash as well as cash equivalents, it also helps in breaking down of analysis to operating as well as investing and other financing activities.
It should be noted that the following items are generally used in preparing a statement of cash flows;
✓Comparative balance sheets
✓Current income statement
✓Additional information
A process costing system is employed in those situations where: Group of answer choices full or absorption cost approach is not employed. many different products, jobs, or batches of production are being produced each period. a service is performed such as in a law firm or an accounting firm. where manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis.
Answer:
where manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis.
Explanation:
Process costing can be regarded as accounting methodology which helps in tracing and accumulation of direct costs, s well s allocation of indirect costs of a manufacturing process. In this method, Costs are been assigned to products, and this is usually in a large batch, and could encompass an entire month's production.
It should be noted that process costing system is employed in those situations where where manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis.
Compute the Return on Investment (ROI) [LO11-1]
Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below:
Sales $ 17,300,000
Net operating income $ 4,700,000
Average operating assets $ 36,000,000
Required:
1. Compute the margin for Alyeska Services Company. (Round your answer to 2 decimal places.)
2. Compute the turnover for Alyeska Services Company. (Round your answer to 2 decimal places.)
3. Compute the return on investment (ROI) for Alyeska Services Company. (Round your intermediate calculations and final answer to 2 decimal places.)
Answer:
See below
Explanation:
1. Margin
= Net operating income / Sales
= $4,700,000 / $17,300,000
= 0.2716 or 27.17%
2. Turnover
= Sales / Average operating assets
= $17,300,000 / $36,000,000
= 0.48
3. Return on investment
= Margin × Turnover
= 27.17% × 0.48
= 13%
13. Social Entrepreneurs identify social needs such as
a. The arts and education
c. Shipping and operations
b. Internet and technology
d. Profit and loss
Help
Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C Sales $ 15,200,000 $ 35,200,000 $ 25,200,000 Average operating assets $ 3,040,000 $ 7,040,000 $ 5,040,000 Net operating income $ 668,800 $ 563,200 $ 655,200 Minimum required rate of return 9.00 % 9.50 % 13.00 % Required: 1. Compute the margin, turnover, and return on investment (ROI) for each division. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 10% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity?
Answer:
1. See the calculations under part 1 below.
2. We have:
Division A's Residual Income (loss) = $395,200
Division B's Residual Income (loss) = (105,600)
Division C's Residual Income (loss) = $0
3.a. Only Division B will accept the investment opportunity.
3.b. Divisions A and B will accept the investment opportunity.
Explanation:
Given:
Division A Division B Division C
Sales $15,200,000 $35,200,000 $25,200,000
Average operating assets $3,040,000 $7,040,000 $5,040,000
Net operating income $668,800 $563,200 $655,200
Min. req'd rate of return 9.00% 9.50% 13.00%
Therefore, we have:
1. Compute the margin, turnover, and return on investment (ROI) for each division.
The formulae for calculating these are:
Margin = Net Operating Income / Sales
Turnover = Sales / Average Operating Assets
Return on Investment = Margin * Turnover
Therefore, we have:
Division A:
Margin = $668,800 / $15,200,000 = 0.0440, or 4.40%
Turnover = $15,200,000 / $3,040,000 = 5 times
Return on Investment = 4.40% * 5 = 22%
Division B:
Margin = $563,200 / $35,200,000 = 0.0160, or 1.60%
Turnover = $35,200,000 / $7,040,000 = 5 times
Return on Investment = 1.60% * 5 = 8%
Division C:
Margin = $655,200 / $25,200,000 = 0.0260, or 2.60%
Turnover = $25,200,000 / $5,040,000 = 5 times
Return on Investment = 2.60% * 5 = 13%
2. Compute the residual income (loss) for each division.
The formula for calculating this is:
Residual Income (loss) = Net Operating Income - Minimum Required Return * Average Operating Assets
Therefore, we have:
Division A's Residual Income (loss) = $668,800 - (9.00% * $3,040,000) = $395,200
Division B's Residual Income (loss) = $563,200 - (9.50% * $7,040,000) = (105,600.00)
Division C's Residual Income (loss) = $655,200 - (13.00% * $5,040,000) = $0
3-a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity?
The decision criterion is for a division to accept the investment opportunity if its Return on Investment (ROI) is lower than 10%. Otherwise, reject.
Based on the Return on Investment results in part 1 above, only Division B will accept the investment opportunity.
3-b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity?
The decision criterion is for a division to accept the investment opportunity if its minimum required rate of return is lower than 10%. Otherwise, reject.
Based on the information on minimum required rate of returns given in the question, Divisions A and B will accept the investment opportunity.
