Complete the sentence below by placing one of the following options in the space. a taxable person is ...
- the person or entity who has direct contract with the tax authority
- the person or entity who is responsible for completing the tax return
-the person or entity who is accountable for the tax payment
- the country whose tax laws apply to the entity

Complete the sentence below by placing one of the following options in the space. tax evasion is
- deferring tax payments
- delaying tax payments
- a legal way of avoiding paying taxes
- an illegal way of avoiding paying taxes

Developed countries generally use three tax bases one tax base widely used is income what is another widely used tax base?
- redemption
- profit
-earnings
- assets
- salary

Which of the following could be said to be a progressive tax ?
- corporate wealth tax at 2 % of total net asset up to R 10 million then at 0.5 % on net asset greater than R 10 million
-value added tax at a rate of 0% 10% or 15 % depending on the type of goods or services provided
- personal income tax of 10 % on earnings up to R10 000 then at 15 % from R10 001 up to R100 000 and 25 % over R 100 000
- property sales tax of 1 % of the selling price of all properties sold.

Given that the interest on a note is 12.0% and the principal was $110,000. We have to find the maturity value of the note if the note is payable in 8 months.

Since the principal was $110,000 and the interest on the note is 12.0%. The interest would be the product of principal and interest rate per annum times time in years. Here, time is given in months; therefore, we need to convert it into years by dividing it by 12.Maturity Value = Principal + InterestInterest = (Principal × Rate × Time)/100Where,P = $110,000R = 12% per annumT = 8/12 yearsNow, we can use the above formula to calculate the interest.

I = (110,000 × 12 × 8/12) / 100= (110,000 × 1 × 2/3) / 100= $2,200Maturity Value = Principal + Interest= $110,000 + $2,200= $112,200Hence, the maturity value of the note is $112,200.

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To find the expected value of the company's sales for the coming year's budget, we need to use the formula of the expected value. Expected value is the sum of all probabilities multiplied by their respective values. It is also known as the weighted average of all possible outcomes.

Here's how to find the expected value:Expected value = Probability * ValueThe following table shows the prime interest rate, probability, and sales growth rates:Prime interest rateProbabilitySales growth2%15% (20%)1%40%3%0%35%5%-1%10%-8%

To calculate the expected value, we need to first calculate the sales growth rate for each scenario. The sales growth rate is calculated by multiplying the probability of each scenario with the sales growth rate for that scenario.

For example, the sales growth rate for the scenario where the prime interest rate increases by 2% is calculated as follows:Sales growth rate for prime interest rate increase of 2% = 15% * 20% = 3%Using this method,

we can calculate the sales growth rate for each scenario as shown in the table below: Prime interest rate Probability Sales growthSales growth rate2%15%20%3.00%1%40%3%1.20%0%35%5%0.00%-1%10%-8%-0.80%The expected value of the company's sales for the coming year's budget is the sum of all the sales growth rates.

So, the expected value can be calculated as follows:Expected value = (Probability of prime interest rate increase of 2% * Sales growth rate for prime interest rate increase of 2%) + (Probability of prime interest rate increase of 1% * Sales growth rate for prime interest rate increase of 1%) + (Probability of prime interest rate unchanged * Sales growth rate for prime interest rate unchanged) + (Probability of prime interest rate decrease of 1% * Sales growth rate for prime interest rate decrease of 1%)Expected value = (0.15 * 3.00%) + (0.40 * 1.20%) + (0.35 * 0.00%) + (0.10 * -0.80%)Expected value = 0.45% + 0.48% + 0% - 0.08%Expected value = 0.85%

Therefore, the expected value of the company's sales for the coming year's budget is 0.85%.

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According to Barack Obama, the "middle-class squeeze" is largely due to ethical problems with Corporate culture.

Barack Obama has highlighted corporate culture as a significant factor contributing to the "middle-class squeeze." Corporate culture refers to the values, norms, and behaviors that exist within an organization, particularly in relation to the treatment of employees and the pursuit of profit. Obama suggests that ethical problems within corporate culture can contribute to the challenges faced by the middle class.

This perspective aligns with Obama's broader concerns about income inequality and economic opportunities for the middle class. He argues that when corporations prioritize profits over the well-being of their employees and the broader society, it can exacerbate the squeeze on the middle class. This can manifest through stagnant wages, reduced job security, and limited upward mobility.

By highlighting corporate culture as a key factor, Obama emphasizes the need for ethical reforms within the business world to address the middle-class squeeze and promote a more inclusive and prosperous society.

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In the absence of pre - departure training, Charlotte may experience certain thing that lead to culture shock such as Algerian culture, society, language, etiquette, manners, and protocol.

Arabic is the national language of Algeria, and Charlotte's lack of proficiency in Arabic may pose a significant language barrier.  It is essential for her to familiarize herself with local customs, traditions, and social expectations to avoid misunderstandings or unintentionally causing offense.

As a predominantly Muslim country, Algeria has specific religious and social observances that Charlotte should be aware of and respect. Algeria, like many other countries, has its own cultural perspectives on gender roles and equality.

The absence of schools providing education in English or French can pose challenges for Charlotte's children. Adjusting to a new educational system, language barriers, and cultural differences in parenting and family life can contribute to the overall culture shock experienced by the entire family.

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The kinds of goals and focus areas that companies often include in their sustainability plans:

1. Environmental Sustainability: Companies may set goals related to reducing their carbon footprint, energy consumption, water usage, waste generation, and greenhouse gas emissions. They may also focus on adopting renewable energy sources and sustainable practices in their operations.

2. Social Responsibility: Companies may outline goals related to promoting diversity and inclusion, ensuring fair labor practices, providing safe working conditions, and supporting local communities through philanthropy and social initiatives.

3. Supply Chain Sustainability: Companies may emphasize responsible sourcing and supplier engagement, ensuring that their supply chain operates ethically, minimizes environmental impacts, and respects human rights.

4. Product Innovation and Circular Economy: Companies may prioritize developing sustainable products, promoting product recycling and reuse, and embracing the principles of the circular economy to minimize waste and maximize resource efficiency.

5. Stakeholder Engagement and Transparency: Companies may commit to engaging with stakeholders, including employees, customers, investors, and communities, and maintaining transparency in reporting their sustainability performance and progress towards goals.

It's important to note that the specific goals and focus areas can vary significantly depending on the industry, company size, and corporate values. Conducting independent research on a specific company's sustainability plan will provide more detailed insights into their goals and areas of focus.

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The barrier to communication between Arun and Varun is a perceptual difference. Despite the fact that Arun and Varun were from similar social and educational backgrounds, they had different perceptions that prevented them from understanding each other, even though they were both experienced in the field.

The difference of opinion between Arun and Varun would happen every time, irrespective of the mode of communication (physical meeting or online communication), according to the passage. This indicates that the issue is not with the method of communication, but rather with the differences in perception that the two employees have.Arun had not been promoted, even though he had been with the company for a long time and was lethargic, but ambitious. On the other hand, Varun was intelligent, hardworking, and had a strong work ethic.

However, it is not just the difference in work ethics that causes the problem. In other companies, Varun had previously worked and gained experience, while Arun had only worked for this company. As a result, their perceptions and ideas regarding work and the company are different. Therefore, their difference in perception creates a barrier to communication between Arun and Varun.

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The cost accounting will be calculated as follows:Operating profit = Revenue - CostsTotal cost of Emma = $2000 (stand rental) + $120x (cost of 1 package)  = $2000 + $120x; Where x is the number of units sold

2:Breakeven point: To find the breakeven point in units, we will equate total cost to the total revenue.

Total revenue = Total cost$200x = $2000 + $120x$80x = $2000x = 25. Therefore, Emma will have to sell 25 units to reach the breakeven point.

Therefore, Emma needs to sell 45 units to earn the target operating profit of $1,600.

4:If Emma reduces the selling price to $175 and she can sell 50 units, then the operating profit will be:

Thus, Emma should not reduce the selling price because the operating profit would decrease from $4,000 to $1,750.

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An unrealized holding gain or loss on a trading debt investment is the difference between the investment's fair value and amortized cost. Therefore, the correct answer is option (C).

An unrealized holding gain or loss is an increase or decrease in the fair value of a security held by a company but not yet sold.

When a company buys securities such as stocks, bonds, or mutual funds, it expects to earn money from them either through income from dividends, interest, or price appreciation that allows them to sell the securities for more than they paid for them. Holding gains or losses may arise as a result of fluctuations in the market value of an investment held by a firm.

Therefore, c is correct.

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1) The incentive for S-Mart and the supplier to participate in "coordination" with a transfer payment must be paid by The supplier to the other firm.

2) The amount of the payment must fall in the range of from $3,222 to $3,245.

1. The coordination of the supply chain provides mutual benefit to both S-Mart and the supplier, which is why supply chain coordination is desirable. In the current situation, if S-Mart utilizes the EOQ that is optimal for itself, the annual total cost will be $6480, but if S-Mart utilizes the EOQ that is optimal for the supply chain, the annual total cost will be $8103.

To encourage the supply chain to participate in coordination with a transfer payment, the supplier must pay the incentive to the other firm as the supplier's annual total cost has a greater decline.

2. The transfer payment must be within a specific range to ensure that the coordination is beneficial to both parties. The transfer payment from the supplier to S-Mart must be between $3,222 and $3,245 for supply chain coordination to be beneficial.

This is found by calculating the annual total cost difference if S-Mart uses the EOQ that is optimal for itself and the annual total cost difference if S-Mart uses the EOQ that is optimal for the supply chain. In this scenario, the transfer payment falls in the above range.

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The equivalent annual worth at a 10% interest rate is roughly $1,040.76.

To compute the equivalent annual worth at an interest rate (i) of 10%, we need to convert the given cash flow diagram into a series of equivalent annual cash flows.

The cash flow diagram shows the following cash flows:

Year 0: -$4,500

Year 1: $2,000

Year 2: $2,000

Year 3: $1,500

Year 4: $1,500

Year 5: $1,000

To calculate the equivalent annual worth, we need to find the annual cash flow that would be equivalent to the given cash flows over the 6-year period.

Step 1: Calculate the present worth (PW) of each cash flow at an interest rate of 10%:

PW = CF / (1 + i)^n

Where CF is the cash flow, i is the interest rate, and n is the number of years.

Present Worth of Year 0 cash flow: -4,500 / (1 + 0.10)^0 = -4,500

Present Worth of Year 1 cash flow: 2,000 / (1 + 0.10)^1 ≈ 1,818.18

Present Worth of Year 2 cash flow: 2,000 / (1 + 0.10)^2 ≈ 1,652.89

Present Worth of Year 3 cash flow: 1,500 / (1 + 0.10)^3 ≈ 1,089.17

Present Worth of Year 4 cash flow: 1,500 / (1 + 0.10)^4 ≈ 990.70

Present Worth of Year 5 cash flow: 1,000 / (1 + 0.10)^5 ≈ 680.58

Step 2: Calculate the equivalent annual worth (AEW) using the present worth values:

AEW = (PW * i) / (1 - 1 / (1 + i)^n)

Where i is the interest rate and n is the number of years.

AEW = (-4,500 * 0.10) / (1 - 1 / (1 + 0.10)^6) ≈ -1,040.76

Therefore, the equivalent annual worth at an interest rate of 10% for the given cash flow diagram is approximately -$1,040.76. The negative value indicates a net outflow or cost.

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The J-curve can be significant for Home country, in which there are only two nations, Home and Foreign, and both exporters and importers set their prices in Home currency and Home trade is initially balanced.

This phenomenon occurs when the trade balance deteriorates after a currency devaluation and then enhances afterward, creating a curve with a "J" shape. It indicates that the initial effect of a currency devaluation is to worsen the trade balance, followed by an improvement that exceeds the original situation.

A currency devaluation might increase the cost of imported goods and services, lowering imports and increasing exports. It is anticipated that the resulting lower import demand will eventually balance the trade account and result in a better outcome.

However, in the short run, the trade balance deteriorates more than it recovers in the long run. The curve of trade balance in response to the exchange rate fluctuation has a J-shape because of this behavior.

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The net profit (loss) for 2020, including the relevant total depreciation deduction, is -$21,701.

To calculate the net profit (loss) for 2020 including the relevant total depreciation deduction, we need to consider the depreciation expenses for the equipment and subtract them from the net profit before incorporating depreciation.

Given information:

Net profit (loss) before incorporating depreciation deduction in 2020: $34,000

Equipment purchase date: May 5, 2013

Equipment purchase cost: $390,000

Bonus depreciation rate in 2011: 5%

To calculate the depreciation expense for the equipment in 2020, we need to determine the depreciable base and apply the appropriate depreciation rate.

Depreciable Base:

The depreciable base is the purchase cost minus any depreciation deductions taken in previous years. Since the Cupcakery opted not to take any Section 179 or other depreciation deductions in 2018, the depreciable base for 2020 is still $390,000.

Depreciation Expense:

Bonus depreciation was allowed at a rate of 5% for the equipment acquired in 2013. Since the bonus depreciation rate has changed over the years, we need to use the appropriate depreciation table provided in your note sheet or textbook to calculate the depreciation expense.

Assuming the depreciation table shows a 7-year recovery period for the equipment, the annual depreciation rate for year 2020 would be 14.29% (100% divided by 7 years).

Depreciation Expense for 2020:

Depreciation Expense = Depreciable Base * Depreciation Rate

Depreciation Expense = $390,000 * 14.29% = $55,701

Net Profit (Loss) for 2020 including Depreciation Deduction:

Net Profit (Loss) = Net Profit before incorporating depreciation - Depreciation Expense

Net Profit (Loss) = $34,000 - $55,701 = -$21,701

Therefore, the net profit (loss) for 2020, including the relevant total depreciation deduction, is -$21,701.

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Based on the given data, the alternative of buying the part from McMillan Company is more attractive to Eggers, and the amount by which it is more attractive is $5.

The alternative which is more attractive to Eggers is to buy the part from McMillan Company for $100. The amount by which this alternative is more attractive can be determined as follows:

For Eggers Company,The cost to make the part:

Direct materials + Direct labor + Variable overhead + Fixed overhead= $ 37 + $20 + $28 + $20= $ 105

McMillan Company is selling the same part to Eggers for $100. This price is less than the cost to make the part, so Eggers should buy the part from McMillan Company. The amount by which this alternative is more attractive to Eggers is:

Amount = Cost to make - Cost to buy= $ 105 - $ 100= $ 5.

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This is the future value of the initial investment and the interest that it has earned. This calculation shows that compounding can be a powerful tool for growing your savings over time.

Investing in an account that earns interest is a smart way to grow your money over time. This process is called compounding. Compound interest is the interest earned on the initial investment and the accumulated interest on that investment. It is calculated by multiplying the initial investment amount by one plus the interest rate raised to the number of compounding periods.

In this case, the initial investment is $14,500, the interest rate is 7.2 percent, and the compounding period is annually. The time frame is eight years.

To calculate the interest, we can use the following formula:

Future Value = Present Value * (1 + Interest Rate)Time

We plug in the given information into the formula as follows:

Future Value = $14,500 * (1 + 0.072)⁸

Future Value = $14,500 * 1.6768

Future Value = $24,324.96

After 8 years, the account will have accumulated a total of $24,324.96.

This is the future value of the initial investment and the interest that it has earned. This calculation shows that compounding can be a powerful tool for growing your savings over time.

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The journal entry of the given transactions would include (a) Dr. Accounts Receivable $27,192.00 and Cr. Sales $27,192.00 and (b) Dr. Cash $27,159.50 and Cr. Sales $27,126.50.

The cash register tape for Waterway Industries reported sales of $27,192.00.

Record the journal entry that would be necessary for each of the following situations.

(a) Sales per cash register tape exceed cash on hand by $54.50.

                                    Debit Credit

Accounts Receivable $27,192.00

Sales                                         $27,192.00

Since the sales per cash register tape exceeds cash on hand by $54.50, the company needs to record the sales in their journal entry as Accounts Receivable $27,192.00 and Sales $27,192.00.

(b) Cash on hand exceeds cash reported by cash register tape by $33.00.

               Debit Credit

Cash $27,159.50

Sales                       $27,126.50

If cash on hand exceeds cash reported by cash register tape by $33.00, the company has to record the cash on hand as Debit to Cash $27,159.50 and Sales $27,126.50 as Credit.

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The terms that best describes the assumption made in applying the four inventory methods is the cash flow. Thus, option C is correct.

The movement of money into and out of a business is referred to as cash flow. Cash received represents inflows, while cash spent represents outflows.

The cash flow statement is a financial statement that details a company's cash sources and expenditures over time. The assumption made when using the four inventory methods (FIFO, LIFO, weighted average, and particular identification) is related to the flow of inventory expenses. These approaches are used to calculate the cost of goods sold and the ending inventory value.

The cost of inventory items is assumed to flow in a given pattern or order, and this cost flow assumption is required for reliably valuing and tracking inventory.

Therefore, option C is correct.

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The monopoly sells its goods at a price of $30 in the United States and $60 in Japan.

To determine the prices at which the monopoly sells its goods in each country, we need to consider the elasticity of demand and the monopoly's marginal cost.

In the United States:

Elasticity of demand (US) = -2

Since the elasticity is negative, we know that the demand curve is downward sloping. In this case, a more elastic demand indicates that consumers are more responsive to changes in price.

To maximize its profit, the monopoly sets its price where marginal cost equals marginal revenue. Since the demand elasticity is -2, the monopolist would set the price markup at half of the elasticity (1/2) to maximize profit.

Price markup = 1/2 * elasticity of demand = 1/2 * (-2) = -1

Marginal revenue (US) = 1 + price markup = 1 + (-1) = 0

To find the price, we need to add the marginal cost to the marginal revenue:

Price (US) = Marginal cost + Marginal revenue = $10 + $0 = $10

Therefore, the monopoly sells its goods at a price of $10 in the United States.

In Japan:

Elasticity of demand (Japan) = -5

Using the same logic as above, the price markup for Japan would be 1/2 * (-5) = -2.5.

Marginal revenue (Japan) = 1 + price markup = 1 + (-2.5) = -1.5

Price (Japan) = Marginal cost + Marginal revenue = $10 + (-$1.5) = $8.5

Therefore, the monopoly sells its goods at a price of $8.5 in Japan.

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The entries for Ivanhoe Corporation borrowed $62,400 on November 1, 2020, by signing a $63,600, 3-month, zero-interest-bearing note are as follows:

November 1, 2020, entry:

Cash 62,400.00Discount on Notes Payable 1,200.00Notes Payable 63,600.00December 31, 2020, annual adjusting entry:

Discount on Notes Payable 400.00Interest Expense 400.00February 1, 2021, entry:

Notes Payable 63,600.00Discount on Notes Payable 800.00Interest Expense 800.00Here’s the explanation:

The entry on November 1, 2020, will record the borrowing of $62,400 from the bank. The difference between the face value of the note and the cash received is the discount on notes payable. Here, the discount on the note is $1,200 ($63,600 - $62,400). The journal entry to record the borrowing on November 1, 2020, is:Cash 62,400.00Discount on Notes Payable 1,200.00Notes Payable 63,600.00On December 31, 2020, the end of the accounting period, adjusting entries are made for the accrued interest expense and to recognize the increase in the discount on the notes payable. As the note is a zero-interest-bearing note, the company has to pay back the full amount due ($63,600) on maturity, which is on February 1, 2021.

Interest is calculated by multiplying the face value of the note by the annual interest rate by the fraction of the year from issuance to maturity. Here, the amount of interest expense is $400 ($63,600 × 0% × 2/12). The journal entry to record the adjusting entry on December 31, 2020, is:

Discount on Notes Payable 400.00Interest Expense 400.00On February 1, 2021, the company pays back the loan in full. The journal entry to record the payment on February 1, 2021, is:

Notes Payable 63,600.00Discount on Notes Payable 800.00Interest Expense 800.00

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1. Taxonomic categories are divisions or classifications of things based on their characteristics. These categories help consumers structure knowledge in memory by providing a mental framework for organizing and remembering information.

2. A schema is a mental framework or blueprint that helps individuals organize and interpret information.Marketers can use various strategies to increase the favorability, uniqueness, and salience of their product schemas

1. Taxonomic categories are divisions or classifications of things based on their characteristics. These categories help consumers structure knowledge in memory by providing a mental framework for organizing and remembering information. Consumers use taxonomic categories to compare and contrast products, identify patterns and relationships, and make decisions based on their needs and preferences. For example, a consumer might use taxonomic categories like "electronics" or "kitchen appliances" to group similar products together in their mind and recall information about them more easily.

2. A schema is a mental framework or blueprint that helps individuals organize and interpret information. Schemas are used to make sense of new experiences and information by comparing them to existing knowledge in memory.

Marketers can use various strategies to increase the favorability, uniqueness, and salience of their product schemas:

Favorability: Marketers can increase the favorability of a product schema by creating positive associations with the brand. This can be achieved through advertising, endorsements, or product placement, among other methods.

Uniqueness: Marketers can increase the uniqueness of a product schema by highlighting distinctive features or benefits that set it apart from competitors. This can be achieved through product design, packaging, or branding.

Salience: Marketers can increase the salience of a product schema by making it more memorable and easily accessible in memory. This can be achieved through repetition, visual cues, or other mnemonic devices.

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As an AI language model, I don't have real-time access to current financial data or specific product information. As of my knowledge cutoff in September 2021, Pacific Gas and Electric Company (PCG) is a utility company and not directly related to the "Hotas Warthog" PC.

Gross margin percentages can vary depending on various factors such as production costs, sales prices, and industry standards. To obtain the specific gross margin percentage for the mentioned product, it would be best to consult the manufacturer, retailer, or official sources for the most up-to-date and accurate information.

The gross margin percentage is a financial metric that indicates the profitability of a product or company. It is calculated by subtracting the cost of goods sold (COGS) from the total revenue and then dividing the result by the total revenue. This percentage represents the portion of revenue that remains after deducting the direct production costs.

In the case of the "Hotas Warthog" PC, which appears to be a product related to gaming or flight simulation, the specific gross margin percentage would depend on factors such as the cost of manufacturing the product, including components, labor, and overhead expenses, as well as the selling price.

To determine the exact gross margin percentage for the "Hotas Warthog" PC, it would be necessary to have access to the financial information of the manufacturer or retailer responsible for the product. They would be able to provide detailed data on production costs and revenues to calculate the specific gross margin percentage for that particular product.

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The value today of a money machine that will pay $4,431 every six months for 15 years at an interest rate of 5% is $89,536.67.

The value today of a money machine that will pay $4,431 every six months for 15 years at an interest rate of 5% can be calculated by using the formula of the present value of an annuity. An annuity is a series of payments made at equal intervals of time. It is either a series of payments received by an individual or a series of payments paid by an individual.

The value of an annuity can be determined by calculating the present value of that annuity. Present value of an annuity: PV = A/i [1 - 1/(1+i)^n]Where, PV = Present value of an annuity = Annuity payments, I = Interest rate n = Number of payments. The first payment will be received after 5 years. Since the payment is made every 6 months, the number of payments will be 30 (15 years x 2 payments per year).

Therefore, n = 30 and i = 2.5% (5% ÷ 2). A = $4,431PV = 4431/0.025 [1 - 1/ (1.025)^30]PV = $89,536.67Hence, the value today of a money machine that will pay $4,431 every six months for 15 years at an interest rate of 5% is $89,536.67.

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Information systems audit is an examination of the management controls within an Information technology (IT) infrastructure and business applications.

True/false statements regarding information systems audit and related terms are as follows:

Information systems audit is an examination of the management controls within an Information technology (IT) infrastructure and business applications:

True The external auditors represent outsiders, internal auditors represent the interests of the organization:

True Fraud audit may be initiated by management who suspect employee fraud:

True Control risk is the likelihood that the control structure is flawed because controls are either absent or inadequate to prevent or detect errors in the accounts:

True The purpose of transaction authorization is to ensure that all material transactions processed by the information system are valid and in accordance with management’s objectives:

True These are the five questions that were answered and they are all true.

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The interest rate on the second 60-day GIC has to be 4.74% for both options to be equivalent.

To determine the interest rate on the second 60-day GIC that would make the two options equivalent, we need to calculate the interest earned on Option 1 and Option 2 and then solve for the unknown interest rate.

Option 1: For Option 1, the interest earned can be calculated as- Interest = Principal x Rate x Time

Interest = $1,000 x 4.45% x (120/365)Interest = $15.16

Option 2: For Option 2, the interest earned in the first 60-day GIC can be calculated as: Interest = Principal x Rate x Time

Interest = $1,000 x 4.50% x (60/365)Interest = $7.40

After 60 days, the maturity value will be:$1,000 + $7.40 = $1,007.40

This can be reinvested in another 60-day GIC, and the interest earned can be calculated as: Interest = Principal x Rate x Time

Interest = $1,007.40 x Rate x (60/365)

For the two options to be equivalent, the interest earned in Option 2 must be equal to the interest earned in Option 1.

Therefore: Interest earned in Option 2 = $15.16$1,007.40 x Rate x (60/365) = $15.16

Rate = $15.16 / ($1,007.40 x 60/365)Rate = 0.0474 or 4.74% (rounded to two decimal places)

Therefore, the interest rate on the second 60-day GIC has to be 4.74% for both options to be equivalent.

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Stock price per share: $222.51. The valuation estimate of Home Depot's stock using the DCF model is higher than the closing price of $174.86, indicating that the stock is undervalued.

a. To estimate the value of a share of Home Depot's common stock using the discounted cash flow (DCF) model, we need to calculate the present value of future cash flows.

1. Calculate the free cash flows to the firm (FCFF) for each forecast period. FCFF is calculated by subtracting net nonoperating obligations (NNO) from the net operating profit after tax (NOPAT).

FCFF 2018 = NOPAT 2018 - NNO

FCFF 2019 = NOPAT 2019 - NNO

FCFF 2020 = NOPAT 2020 - NNO

FCFF 2021 = NOPAT 2021 - NNO

FCFF 2022 = NOPAT 2022 - NNO

FCFF Terminal = NOPAT 2022 * (1 + Terminal growth rate) / (Discount rate - Terminal growth rate)

2. Determine the present value factor for each forecast period. The present value factor is calculated as 1 / (1 + discount rate) raised to the power of the forecast period.

PV Factor 2018 = 1 / (1 + Discount rate)¹

PV Factor 2019 = 1 / (1 + Discount rate)²

PV Factor 2020 = 1 / (1 + Discount rate)³

PV Factor 2021 = 1 / (1 + Discount rate)⁴

PV Factor 2022 = 1 / (1 + Discount rate)⁵

PV Factor Terminal = 1 / [tex](1 + Discount rate) ^ {(5 + 1)[/tex]

3. Calculate the present value of each FCFF by multiplying the FCFF for each period by its corresponding PV factor.

PV FCFF 2018 = FCFF 2018 * PV Factor 2018

PV FCFF 2019 = FCFF 2019 * PV Factor 2019

PV FCFF 2020 = FCFF 2020 * PV Factor 2020

PV FCFF 2021 = FCFF 2021 * PV Factor 2021

PV FCFF 2022 = FCFF 2022 * PV Factor 2022

PV FCFF Terminal = FCFF Terminal * PV Factor Terminal

4. Calculate the sum of all present values of FCFF to get the total present value (PV) of cash flows.

Total PV of Cash Flows = PV FCFF 2018 + PV FCFF 2019 + PV FCFF 2020 + PV FCFF 2021 + PV FCFF 2022 + PV FCFF Terminal

5. Divide the total PV of cash flows by the number of common shares outstanding to get the estimated value per share.

Estimated Value per Share = Total PV of Cash Flows / Number of Common Shares Outstanding

b. Comparing the valuation estimate with the closing price of Home Depot stock on March 28, 2019:

The closing price of Home Depot stock on March 28, 2019, was $174.86. Since the estimated value per share using the DCF model is $222.51, it suggests that the stock price is appropriately valued.

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The probable question may be:

Estimating Share Value Using the DCF Model Following are forecasts of Home Depot's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of February 3, 2019, which the company labels fiscal 2018. $ millions Sales NOPAT NOA Forecast Horizon Period Reported Terminal 2018 2019 2020 2021 2022 Period $99,547 $106,515 $113,971 $121,949 $130,485 $133,095 11.107 11,930 12,765 13,658 14,614 14,907 23,502 25,145 26,905 28,789 30,804 31,420 Answer the following requirements assuming a discount rate (WACC) of 7.85%, a terminal period growth rate of 2%, common shares outstanding of 1,105 million, net nonoperating obligations (NNO) of $25,230 million Required a. Estimate the value of a share of Home Depot's common stock using the discounted cash flow (DCF) model as of February 3, 2019. Note: Do not round until your final answer; round your final answer to two decimal places. Stock price per share: $ 0 X b. Home Depot stock closed at $174.86 on March 28, 2019, the date the Form 10-K was filed with the SEC. How does your valuation estimate compare with this closing price? Stock price is appropriately valued

To prepare the journal entries for the transactions, we need to record the purchases and sales of securities. Here are the journal entries for each transaction:

February 17:

Debit: U.S. Treasury 6% bonds - $102,000

Debit: Accrued interest - $1,000

Credit: Cash - $103,000

April 10:

Debit: Gauges Inc. common stock - $70,000 ($140/share * 500 shares)

Credit: Cash - $70,000

August 8:

No journal entry is required at this time since the stock is being held.

Sold 100 shares of Gauges Inc. for $150 per share:

Debit: Cash - $15,000 (100 shares * $150/share)

Credit: Gauges Inc. common stock - $14,000 (100 shares * $140/share)

Credit: Gain on sale of securities - $1,000

October 5:

Debit: Cash - $51,800 ($51,500 + $300)

Debit: Accrued interest - $300

Credit: U.S. Treasury 6% bonds - $51,800

Please note that the journal entries provided are general entries based on the information provided. It's important to consult with an accounting professional or refer to specific accounting standards for accurate and complete journal entries.

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IRAC format refers to Issue, Rule, Analysis, and Conclusion. I. Issue:  Can Conrad recover from James for the damages he paid to Aileen as a result of the accident?

R. Rule: To determine Conrad's best argument, we need to consider the principles of contract law. Generally, a party may seek indemnification or reimbursement from another party if there is an agreement or legal basis for such recovery.

A. Analysis: 1) In this case, Conrad entered into a valid contract with James, which obligated Conrad to pick up and deliver a car from New York to James' residence in California.

2) The contract does not explicitly address the issue of liability for accidents or damages incurred during transportation.

3) Generally, absent any specific contractual provisions, a party may not hold the other party liable for damages resulting from the performance of a contract unless there is a breach of duty or negligence.

4) However, in this situation, Conrad may argue that James should bear the responsibility for the accident and the resulting damages.

5) Conrad's argument could be based on the implied warranty of workmanlike performance, which implies that the person performing the contract has the necessary skills and will carry out the task in a reasonably competent manner.

6) Conrad can contend that James breached this implied warranty by providing a defective car or by failing to disclose any known mechanical issues that contributed to the accident.

7) If Conrad can establish that James breached the implied warranty and this breach directly caused the accident, Conrad may have a valid argument for recovering from James.

C. Conclusion:Conrad's best argument to recover from James would be based on the implied warranty of workmanlike performance. If Conrad can show that James provided a defective car or failed to disclose known mechanical issues that led to the accident, Conrad may be able to seek indemnification or reimbursement from James for the damages paid to Aileen.

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The method that uses a weighted average of past values for arriving at smoothed time series values is known as d) an exponential smoothing.

An exponential smoothing method is a forecasting technique that uses the past data of a time series to predict future trends. It is commonly used to smooth out irregularities in a time series, identify patterns, and make predictions.Exponential smoothing assigns exponentially decreasing weights to older observations. Thus, the method gives more weight to recent observations and less weight to older observations. This technique is widely used to predict sales, demand, and supply chains. It is especially useful when a time series has a trend, seasonal effects, and noise.

Exponential smoothing technique is easy to use and flexible. The formula for exponential smoothing is as follows:  $$ \hat y_{t+1}= \alpha y_{t} + (1 - \alpha)\hat y_t$$ where y is the actual observation, $\hat y_t$ is the forecast, and $\alpha$ is the smoothing constant. The smoothing constant $\alpha$ lies between 0 and 1. The closer the value of $\alpha$ to 1, the more weight is given to recent observations, and the smoother the trend is. The answer is d. an exponential average.

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The kind of financial instruments are included in this sensitivity analysis are -  Equity Instruments, Interest Rate Instruments, Currency Instruments, Commodities instruments, and Derivative Instruments is the answer.

Sensitivity analysis is an important tool used by IBM to identify and analyze the various sources of specific risk, which affect its business operations. This tool helps in determining the impact of different market risk exposures on the fair value of the company's assets. It identifies the specific risks that impact IBM's financial position and assists in developing effective risk management strategies.

Financial instruments that are included in sensitivity analysis are as follows:

Equity Instruments: This financial instrument includes stocks, common shares, and preferred stocks. These are highly volatile and subject to fluctuations due to market conditions. They are the most important sources of financial risk that are included in sensitivity analysis.
Interest Rate Instruments: These financial instruments include bonds, bills, and other interest rate-sensitive instruments. They are subject to fluctuations in interest rates and can result in changes in the value of IBM's assets.
Currency Instruments: These financial instruments include foreign exchange rates, and their fluctuations can impact IBM's assets' value.
Commodities instruments: Commodities like gold, oil, and other precious metals can be included in this financial instrument. Changes in their prices can lead to a change in the value of the company's assets.
Derivative Instruments: These financial instruments include futures, options, swaps, and other financial contracts. They are highly sensitive to changes in market conditions and can impact the value of IBM's assets.

Thus, these are the financial instruments included in sensitivity analysis to determine the impact of different market risk exposures on the fair value of the company's assets.

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The weighted average cost of capital for the company, given the cost of equity and debt -  equity ratio is 9. 59 %.

Debt - equity ratio is the same as:

= Debt / equity

Assuming equity is x, it can be put into the formula to denote it:

Debt = 0. 75 x

Total = 1. 75 x

Weighted average cost of capital is :

= Cost of debt x Weight of debt + Cost of equity x Weight of equity

= ( x / 1. 75x * 11. 9 ) + ( 0. 75x / 1. 75 x * 6. 5 )

= 9. 59%

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Full question is:
A firm has a cost of debt of 6.5 percent and a cost of equity of 11.9 percent. The debt–equity ratio is .75. There are no taxes. What is the firm's weighted average cost of capital?

Accepting the special order at the offered price of $199.95 per trophy would increase the company's operating income by $229.50.

Selling price per trophy for the special order: $199.95

Unit product cost of the trophy: $164.00

Additional materials cost per trophy: $6.00

Additional fixed manufacturing overhead cost per trophy: $0.00

Additional variable manufacturing overhead cost per trophy: $7.00

Additional cost for the special tool: $195.00

Contribution margin per trophy = Selling price per trophy - Unit product cost per trophy

Contribution margin per trophy = $199.95 - $164.00 = $35.95

Incremental contribution margin for the special order = Contribution margin per trophy - Additional materials cost per trophy - Additional variable manufacturing overhead cost per trophy

Incremental contribution margin for the special order = $35.95 - $6.00 - $7.00 = $22.95

Now, we can calculate the effect on the company's operating income:

Effect on operating income = Incremental contribution margin per trophy * Number of trophies in the special order

Effect on operating income = $22.95 * 10 = $229.50

Therefore, accepting the special order at the offered price of $199.95 per trophy would increase the company's operating income by $229.50.

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