The amount of $25.00 billion will be the private investment spending that each $10 billion increase in government spending will crowd out.
What is the explanation on government expenditure?When the government expenditure increased by $1 billion, the planned investment expenditure will falls by $0.20 billion., hence, for each $1 billion increase in government spending, there is a net change in intial spending of $0.2 billion
Also, the aggregate demand curve will shift to the right by the net change in spending multiplied by the multiplier, which equals 1- MPC.
Hence, the net increase in AD due to the $1 billion increase in government expenditure is equals what is known as the net multiplier.
Therefore, the amount of $25.00 billion will be the private investment spending that each $10 billion increase in government spending will crowd out.
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When inflation occurs each dollar of income will buy ______ goods and services than before. Multiple choice question. fewer more the same amount of
When inflation occurs each dollar of income will buy fewer goods and services than before.
What is inflation?In the field of economics, inflation refers to an overall rise in the cost of goods and services throughout a nation. Each unit of currency may purchase fewer products and services as the general price level rises, hence inflation is associated with a decline in the purchasing power of money. Deflation, a continuous drop in the general level of prices for goods and services, is the reverse of inflation. The annualized percentage change in a general price index, or the inflation rate, is the most widely used indicator of inflation. The consumer price index (CPI) is frequently employed for this purpose because price increases are not uniform across the board.In the United States, wages are also calculated using the employment cost index.Therefore, when inflation occurs each dollar of income will buy fewer goods and services than before.
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A major difference between monopolistic competition and perfect competition is A) the number of sellers in the markets. B) the degree by which the market demand
A major difference between monopolistic competition and perfect competition is " that products are not standardised in monopolistic competition unlike in perfect competition."
What is monopolistic competition and perfect competition?In a monopolistic market, a single company controls the amount of supply and the prices of goods and services. Consumers are likely to be familiar with a variety of industries that exhibit monopolistic competition in their daily lives. Restaurants, hair salons, apparel, and consumer gadgets are a few examples.A market with perfect competition is one with many enterprises and no dominant player. No market is entirely monopolistic or completely competitive in the actual world.To know more about the common goods and services a family buy, here
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Kris transfers a note, on which Liu is the maker, to Mia, who takes it for value and in good faith. Mia knows that Kris breached the contract underlying the note, giving Liu a defense against payment. With respect to this note, Mia is
With respect to this note, Mia is an ordinary holder.
What is a ordinary holder?Corresponds to an individual who acquires a good or service in good faith against a payment, becoming the owner of the good and with the expectation that the purchase and sale process will be carried out by law.
Therefore, a ordinary holder like Mia, who knows of the breach of contract underlying the note, gives the maker Liu the legal right not to make the payment.
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Insurance companies can cancel your premium for any reason during the first ____ days after your policy is activated.
Answer:
60 Days
An insurance company can cancel your insurance during the first 60 days.
An activity measure focused on the number of items produced in the production process is called a(n) ______ measure.
An activity measure focused on the number of items produced in the production process is called a(n) Output measure.
More about output measure:
When we talk about output measurement in production another contradictory term which comes to our mind is outcome measurement.
Output measurement:
Measures of an organization's output what it generates during production. For a health department, an example of this may be the quantity of homes that have had their lead paint examined. Or the number of people trained as part of a training programme
Outcome measurement:
Measures related to what the organization aims to achieve. These are sometimes divided into short-term, medium-term and long-term measures.
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The structure, processes, and procedures of an organization are designed, put into place, reviewed, and reworked through a process known as ______.
Answer:
review I think
Explanation:
I think I'm sorry if wrong
The structure, processes, and procedures of an organization are designed, put into place, reviewed, and reworked through a process known as Organizational design.
What is organization?An organization is a collection of individuals who work together to fulfill the management's common aims. There are a range of people present in the organization who work and interact with one another to influence how the company operates.
Every organization has three levels: the top level, the midlevel, and the lowest level.
Organizational design is the method of matching an organization's structure with its objectives, with the ultimate goal of increasing efficiency and effectiveness. Work might be prompted by the need to enhance service delivery or specific industry procedures, or by a new requirement.
Therefore, it can be concluded that Organizational design is prepared a structure in order to carry down all business activities.
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What is a list of quantities of components, ingredients, and materials required to make a product?.
A list of quantities of components, ingredients, and materials required to make a product is bill-of-material.
However if you're searching out a preferred parent to get began out, the overall cost of developing the most modest merchandise is $30,000, on not unusual. This discern applies to fairly easy merchandise and consists of the fee of designing, prototyping, attempting out, and launching the brand new product.
A product is any object or provider you sell to serve a customer's wants or needs. They may be physical or virtual. Bodily merchandise consists of long-lasting items (consisting of vehicles, furnishings, and computer structures) and nondurable gadgets (which consist of food and drinks).
In worldwide of Alibaba and ThomasNet, production of your very personal products is possible without even talking to your provider or assembly head to head. When you have small adjustments which may be smooth to carry and put into effect, you've got so that it will achieve this with no problem.
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Firms with volatile operating income tend to have lower debt ratios because Blank______. Multiple choice question. there is a lower probability of experiencing financial distress there is a higher probability of experiencing financial distress the need for external financing is higher the need for external financing is lower
Option 2 is correct - There is a higher probability of experiencing Financial distress.
Firms with volatile operating income tend to have lower debt ratios because there is a higher probability of experiencing financial distress.
Financial distress is a condition in which a company or individual cannot generate sufficient revenues or income, making it unable to meet or pay its financial obligations. This is generally due to high fixed costs, a large degree of illiquid assets, or revenues sensitive to economic downturns.
Following reasons can lead to financial distress in a firm.
Cash flows - The first sign that things are going wrong is a constant shortage of cash. The old adage that cash is king exists for a reasonFalling margins and poor profits - Experienced entrepreneurs have learnt that for long-term survival what matters are profits, not only sales. Poor profits are usually the first indicators that a business is not doing well.Poor sales growth or decline in revenues - When there is no sales growth despite extreme marketing activities, this could indicate a lack of customer acceptance, which is key to any business success.Extended payment days - Another sign of possible trouble is a rise in either creditor or debtor payment days. If business has to delay payments to its creditors, this can force some suppliers to stop supplyingDifficulty in raising capital - If a company is constantly borrowing and asking its investors to inject more capital, this is an underlying sign that it is increasingly finding it difficult to self-sustain.Hence, Firms with volatile operating income tend to have lower debt ratios because there is a higher probability of experiencing financial distress.
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A widower owned a residence in fee simple absolute. He contracted to sell it to a couple. The couple did not record the contract. The contract did not require either party to acquire or maintain casualty insurance on the premises, and neither party did so. After the parties entered into the contract, the widower continued to occupy the residence. A week before closing, the residence was completely destroyed by a fire caused by a lightning strike. On whom does the risk of loss fall
The risk falls on the couple as the contract was not recorded and at that time widower has contracted the residence.
What is a contract?A contract is a legally binding agreement that establishes, defines, and governs the mutual rights and obligations of its parties. A contract usually involves the exchange of products, services, or money, or the promise to exchange any of these at a later period. If a contract is breached, the damaged party may seek court remedies such as damages or rescission. Contract law, or the law of obligations relating to contracts, is founded on the concept that agreements must be honored.What happens if a contract is not recorded?First and foremost, if your contract is not published, nothing in the public record prevents the seller from transferring the property to others. If the seller sells your property to someone else and that person documents your acts at the county clerk's office in front of you, you may be liable for property damage.Therefore, the risk fell on the couple as the contract was not recorded, and at that time widower has contracted the residence.
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_____ theory is based on the premise that an individual's intention to work toward a goal is a primary source of motivation. Group of answer choices Expectancy Goal-setting Scientific management Equity
Option B. Goal setting theory is the premise that an individual's intention to work toward a goal is a primary source of motivation.
What does it mean to set goals?This is one of the ways that people are able to meet up with the plans that they make.
To make goals means to make a list of the things that a person may want to achieve and the ways they plan to carry out their plans.
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A prominent hedge fund investor argues that basic materials stocks (e.g. producers of iron ore, nickel, steel, cement, fertilizer, etc..) are in a secular bull market. If he is correct, this means that A. Supply of these products will exceed demand over the long-term before reaching equilibrium. B. Demand for these products will exceed supply over the short-term before reaching equilibrium. C. Supply of these products will exceed demand over the short-term before reaching equilibrium. D. Demand for these products will exceed supply over the long-term before reaching equilibrium.
If the hedge fund investor is right, this means the ''demand for these products will exceed supply over the long-term before reaching equilibrium'' in a secular bull market. The correct answer is option D.
What is a secular bull market?A bear market is when demand is over supply and hence prices are high. Stocks tend to rise. In a "secular" bear market, this happens for a long period.
A secular bull market is a market that is driven by forces that could be in place for many years, causing the price of a particular investment or asset class to rise over a long period.In a secular bull market, positive conditions such as low interest rates and strong corporate earnings push stock prices higher.This long period can be years, 25 to 50 or more years In the stock market, a bull market is typically consistent with a 20% rise in stock prices How does the secular bull market end? or reach equilibrium?When asset prices fall by at least 20% from recent highs, a secular bull market is said to have ended. Long-term price drops (often lasting two months or longer) indicate the conclusion of a bull market and the start of a bear market. Investors worry over long-term economic development and pessimism are frequently present at the end of a bull market. Investors may sell their stocks and turn to safer alternatives like cash or bonds or certificates of deposit instead of stocks (CDs).
Since the hedge fund investor argues that the basic material stocks are in a secular bull market, he means that the demand for these products were constistently increasing by 20% in the stock market over years.
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If A prominent hedge fund investor is right, this means the ''Demand for these products will exceed supply over the long-term before reaching equilibrium'' in a secular bull market.
What is a secular bull market?A bear market is when demand is over supply and hence prices are high. Stocks tend to rise. In a "secular" bear market, this happens for a long period.
A secular bull market is a market that is driven by forces that could be in place for many years, causing the price of a particular investment or asset class to rise over a long period.
In a secular bull market, positive conditions such as low interest rates and strong corporate earnings push stock prices higher. This long period can be years, 25 to 50 or more years . In the stock market, a bull market is typically consistent with a 20% rise in stock prices.
Thus, we can say that the right answer is D.
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Accounts Receivable has a $2,300 balance, and the Allowance for Doubtful Accounts has a $200 credit balance. An $80 account receivable is written-off. Net receivables (net realizable value) after the write-off equals ______. Multiple choice question. $2,100 $2,220 $2,020 $2,180
Net receivables (net realizable value) after the write-off equals option (a) i.e, $2,100.
Given that $80 has been written off, accounts Receivable have a $2,300 balance, and the allowance for Doubtful accounts has a $200 credit balance.The balance must be deducted from the accounts receivable while also being deducted from the account credit balance. We may construct the following equation to calculate the net receivables:
N=(R-W)-(C-W)
where;
N = Net realizable value
R = Accounts receivable
W = Written off accounts receivables
C = Credit balance
In our case;
N=unknown
R=$2,300
W=$80
C=$200
replacing;
N=(2,300₋80)₋(200₋80)
N=(2,220₋120)=2,100
N=$2,100
The net realizable value after the write-off equals $2,100.
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Sum Company has reminded Innovation Marketing of the limitations of their budget. Innovation Marketing reviewed the marketing plan to prompt Sum Company to look at the relationship between the communications analysis and the budget determination. This is known as
A planning process is ongoing when there is a review of the marketing plan to prompt Sum Company to look at the relationship between analysis and determination.
What is a planning process?This refers to the necessary steps taken by a company to develop its budgets to guide its future activities.
Hence, a planning process is ongoing when there is a review of the marketing plan to prompt Sum Company to look at the relationship between analysis and determination.
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By default, outlook will sort messages by date and by any conversation. Conversations area
In the outlook application, the conversation means the groups of messages between the same senders or recipients.
What is the outlook application?It is an application on windows that allows to send/receive email messages, manage calendar, store names, track tasks etc
Hence, in this application, the term conversation means the groups of messages between the same senders or recipients.
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Your next-door neighbor, a kind, elderly lady, just discovered that her stock account had been excessively traded in an inappropriate manner, mainly to generate excess commissions. This is an example of Question 14 options: account theft. black market trading. high turnover trading. churning. None of these.
This is an example of Churning.
What is Churning?Churning, or excessive trading of assets in a client's account by a broker to generate commissions, is an unlawful and unethical practice. Churning cannot be quantified, it may be demonstrated by the repeated purchasing and selling of stocks or other assets that fall short of the client's investing goals.Churning is the practice of exchanging assets excessively in a client's brokerage account in an effort to earn commissions.What is Trading?Trading, as opposed to investing, is the act of purchasing and selling financial instruments including stocks, bonds, currencies, and commodities.Learn more about Trading with the help of the given link:
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What is the name of the document that companies use to report quarterly financial results?.
Answer:
Publicly traded companies are required by law to file quarterly reports through the Securities and Exchange Commission (SEC) using Form 10-Q.
Suppose VS's stock price is currently $20. In the next 6 months it will either fall to $10 or rise to $30. What is the current value of a European 6-month put option with an exercise price of $15
Your question is incomplete. Please read below for the missing content.
Upmove (U) = High price/current price=30/20=1.5
Down move (D) = Low price/current price=10/20=0.5
Risk neutral probability for up move
q = (e^(risk free rate*time)-D)/(U-D)
=(e^(0.1*0.5)-0.5)/(1.5-0.5)=0.55127
Put option payoff at a high price (payoff H)
=Max(Strike price-High price,0)
=Max(15-30,0)
=Max(-15,0)
=0
Put option payoff at a low price (Payoff L)
=Max(Strike price-low price,0)
=Max(15-10,0)
=Max(5,0)
=5
Price of Put option = e^(-r*t)*(q*Payoff H+(1-q)*Payoff L)
=e^(-0.1*0.5)*(0.551271*0+(1-0.551271)*5)
=2.13
To buy for stocks, you may normally want the help of a stockbroker, since you can not in reality call up an inventory change and ask to buy shares at once. while you use a stockbroker, whether a human being or a web platform, you can pick out the investment that you want to buy or sell and the way the exchange needs to be treated.
Suppose VS's stock price is currently $20. In the next six months, it will either fall to $10 or rise to $30. What is the current value of a put option with an exercise price of $15? The six-month risk-free interest rate is 5% (periodic rate).
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Your question is incomplete. Please read below for the missing content.
Upmove (U) = High price/current price=30/20=1.5
Down move (D) = Low price/current price=10/20=0.5
Risk neutral probability for up move
q = (e^(risk free rate*time)-D)/(U-D)
=(e^(0.1*0.5)-0.5)/(1.5-0.5)=0.55127
Put option payoff at a high price (payoff H)
=Max(Strike price-High price,0)
=Max(15-30,0)
=Max(-15,0)
=0
Put option payoff at a low price (Payoff L)
=Max(Strike price-low price,0)
=Max(15-10,0)
=Max(5,0)
=5
Price of Put option = e^(-r*t)*(q*Payoff H+(1-q)*Payoff L)
=e^(-0.1*0.5)*(0.551271*0+(1-0.551271)*5)
=2.13
To buy stocks, you may normally want the help of a stockbroker, since you can not in reality call up an inventory change and ask to buy shares at once. while you use a stockbroker, whether a human being or a web platform, you can pick out the investment that you want to buy or sell and the way the exchange needs to be treated.
Suppose VS's stock price is currently $20. In the next six months, it will either fall to $10 or rise to $30. What is the current value of a put option with an exercise price of $15? The six-month risk-free interest rate is 5% (periodic rate).
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In the month of July (31 days), a company had an available balance in their deposit account of $4,126,000 and service charges of $2,500. If the ECR for the month was 45 bp (0.45%), and the reserve requirement of 10%, how much will the company owe the bank in hard dollar fees, after adjustment for earnings credit
The amount that the company owe the bank in hard dollar fees, after adjustment for earnings credit is:$1081.
Amount owe after adjustmentUsing this formula
Amount owe=Service charges-(Deposit balance×(1-Reserve requirement)×ECR× Number of days/Number of days in a year)
Let plug in the formula
Amount owe = 2500 - (4126000× (1-.10)×0.45%×31/365)
Amount owe = 2500 - (4126000×.90×0.45%×31/365)
Amount owe=2500-1,419
Amount owe =$1081
Therefore the amount that the company owe the bank in hard dollar fees, after adjustment for earnings credit is:$1081.
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9. You were approved for your 30-year mortgage with a 4% interest rate and monthly payments. What is your effective annual rate
Answer:
4.07%
Explanation:
EAR = (1 + r/m)^m - 1
(1 + 0.04/12)^12 - 1
(1.00333)^12 - 1
1.04074 - 1
0.04074 = 4.07%
Despite its innovative graphic design, the website for Shabby-Chic Decor did not seem to attract customers who lingered. In fact, most website visitors left the site before they made a purchase. Which measure does the owner need to address
Bounce rate is the measure that the owner needs to address.
What is the Bounce rate?
Bounce rate is a word used in internet marketing and business terms to describe the examination of website visitor data. The rate (always expressed as a percentage) shows the proportion of web users who arrive, view a single page, then leave.
The bounce rate of a website is important because it reveals how well users are engaging with its content or user interface, or more crucially, how poorly they are not. When someone sees a single page on your website and accomplishes nothing before leaving, that rate is known as a bounce rate.
it is derived by calculating the overall number of one-page visits by the overall number of visitors.
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An increase in the price of coffee will _______ the market price and ________ the market quantity of tea, a substitute for coffee.
Increase; increase
being a perfect substitute for tea when the price of coffee increases the market price also increases and the market quantity of tea also increases as it is relatively cheaper than coffee.
Substitute Goods:
A substitute good can also be a service rather than just a tangible item. It is actually defined as a good or service that replaces another. For instance, more customers may choose to go to Burger King or KFC when the price of McDonald's rises. A similar product that can be used in place of another is what is meant by a substitute good, to put it another way. In other words, it resembles it enough to serve the same purpose. For instance, since both the iPhone and the Galaxy Note function as mobile phones, they both serve as substitutes
Substitute goods ensure there is a competitive environment. This is important because it helps keep prices down, and quality up.
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It is claimed that a secondary advantage of mutual funds is that a. they give ordinary people access to the skills of professional money managers. b. an investor can avoid investment charges and fees. c. they give ordinary people access to loanable funds for investing. d. they usually outperform stock market indexes.
A secondary advantage of mutual funds is that they give ordinary people access to the skills of professional money managers.
What is a mutual funds?A mutual fund is when a group of investors pool money together to buy financial assets such as stocks, bonds and derivatives which are managed by a manager.
Mutual funds allows those with small assets under management to be able to access the services of a professional money manger as a professional manager might only be accessible to those with high assets under management.
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Ballard Company incurred a total cost of $9,600 to produce 400 units of pulp. Each unit of pulp required five (5) direct labor hours to complete. What is the total fixed cost if the variable cost was $1.80 per direct labor hour
The answer is $6000.
Given,
total cost = $9,600
produce = 400 units of pulp
Each unit of pulp = 5 direct labor hours
variable cost = $1.80 per direct labor hour
Total direct labor hours = Units of pulp produced ×no. of direct labor hours required for one unit of pulp
Now substituting the values in the above equation we get,
Total direct labor hours = 400 units × 5 direct labor hours
= 2000 direct labor hours
Total variable cost = variable cost per direct labor hour × total direct labor hours
Now substituting the values in the above equation we get,
Total variable cost = $1.80 × 2000 direct labor hours
= $3600
Since, Total cost = Total fixed cost + total variable cost
Now substituting the values in the above equation we get,
$9600 = Total fixed cost + $3600
Total fixed cost = $9600 - $3600
= $6000
Hence, for the given case total fixed cost if the variable cost was $1.80 per direct labor hour is $6000.
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The corporate office of a multinational firm adds value to its acquired businesses by performing activities such as evaluating their ERP systems, enhancing their accounting activities, and managing union negotiations. This is an example of
The corporate office of a multinational firm adds value to its acquired businesses by performing activities such as evaluating their ERP systems, enhancing their accounting activities, and managing union negotiations. This is an example of attaining the benefits of parenting.
Parenting helps a firm achieve synergy in a newly acquired business.
According to Psychology Today, parents who practice positive parenting see improvements in their children's academic performance, behavior issues, substance use, mental health, social skills, and self-concept. Co-parenting partnerships can benefit greatly from positive parenting practices.
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Select 3 goals or objectives that a leadership plan might include to achieve a solid business strategy. Multiple select question. Increasing sales Supply chain power Buying power Attracting new customers Decreasing costs
The leadership plans that must be included to achieve a solid business strategy are options A, C, and D. Option A is to increase sales; Option C is to attract new customers; and Option D is to reduce costs.
What is a business strategy?An outline that is drawn by keeping in mind the set of goals, plans, or actions that are to be achieved by the company for a successful business in the market with the same kind of product or service is known as a business strategy.
In simple words, to make the growth of business continuous and to maintain the position of business or to grow it, a systematic plan is made on which all the employees of the firm work. This plan is known as a business strategy.
Therefore, 3 goals or objectives that a leadership plan might include to achieve a solid business strategy are option A: increasing sales power, Option C is to attract new customers, while Option D is to reduce costs.
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Which of the following retirement vehicles provide income tax-advantages? (check all that apply)
A. 403(b)
B. Mutual Fund
C. 401(k)
D. Roth IRA
E. IRA
The 403(b) and 401(k) are the the retirement vehicles that provide income tax-advantages.
What is an income tax-advantages?These advantage means the item one can subtract from your taxable income to lower the amount of taxes you owe.
Hence, the 403(b) and 401(k) are the the retirement vehicles that provide income tax-advantages.
Therefore, the Option A, C is correct.
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Economist Thomas Piketty criticized executive compensation levels and thought CEOs should be satisfied with:
Economist Thomas Piketty criticized executive compensation levels and thought CEOs should be satisfied with: reduced pay.
What does Piketty saw about the high wage of CEOs?
According to this bestselling economist, he attributed the high rate of wage that CEOs receive to be a reason for the inequality experienced in the society.
According to him, a nation cannot be said to be growing when individual wealth is higher than the GDP of the nation.
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Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, Gideon Company wrote off the $2,000 uncollectible account of its customer, A. Hopkins. On July 10, Gideon received a check for the full amount of $2,000 from Hopkins. The entry or entries Gideon makes to record the recovery of the bad debt is: Multiple Choi
A. Hopkins, accounts Receivables $2,000 (debit)
⇒Bad debts expenditure (credit) $2,000
⇒Cash $2,000 (debit)
⇒ Hopkins, account Receivables $2,000 (credit)
Allowance methodAt the end of each month, uncollectible accounts are estimated using the allowance technique of accounting for bad debts. Ensures that receivables are shown on the balance sheet at their cash (net) realizable value and better aligns expenses and revenues on the income statement.With the allowance technique, a reserve is set up for anticipated future bad debts. The reserve is calculated as a percentage of the sales made during the reporting period, with the potential for adjustments for the risk related to certain customers.Why do people utilize the allowance method?How much cash a company should set aside for potential future bad or unrecoverable customer debt is determined using the allowance technique. It takes into account the price of the losses a business anticipates from giving customers credit.
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The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,050,000, and it would cost another $24,000 to install it. The machine falls into the MACRS 3-year class (the applicable MACRS depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%), and it would be sold after 3 years for $622,000. The machine would require an increase in net working capital (inventory) of $18,000. The sprayer would not change revenues, but it is expected to save the firm $382,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 30%. What is the Year 0 net cash flow
The Year 0 net cash flow is $1,092,000.
What is zero year net cash flow?a real zero cash flow property, sometimes known as "zero," is a highly leveraged asset that is set up so that the net operating income (NOI), which serves as the basis for distribution to equity investors, equals the loan payment.
Calculation for the Year 0 net cash flow:
The sprayer's base price of robotic paint sprayer is $1,050,000.
The installation of robotic paint sprayer is $24,000.
Book value of the robotic paint sprayer = base price + installation
= $1,050,000 + $24,000
= $1,074,000
Year 0 net cash flow = Book value + Net working capital
= $1,074,000 + $18,000
= $1,092,000
Therefore, the year 0 net cash flow is $1,092,000.
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Brand equity results in lucrative brand Blank______ opportunities, when another company wishes to pay a royalty or fee to use your brand name or trademark.
Brand equity results in lucrative brand ___licensing___ opportunities, when another company wishes to pay a royalty or fee to use your brand name or trademark.
How does brand equity work?
The power a brand name has over consumers' perceptions and the benefit of having a recognizable and well-recognized brand are measured by brand equity. Businesses build their brand equity by offering customers satisfying experiences that encourage them to stick with them instead of switching to a rival company selling a similar item. The creation of awareness often obtains brand equity through marketing campaigns that appeal to the values of the target consumer, fulfilling promises and qualifications when consumers use the product, and loyalty and retention activities. Brand equity's two main pillars are awareness and experience.
What is licensing a brand?Renting or leasing an intangible asset is known as licensing. It is the process of drafting and overseeing contracts between the owner of a brand and a business or person who wishes to use the brand in connection with a good for a predetermined amount of time and in a predetermined region. Brand owners can use licensing to apply a trademark or character to goods with distinct characteristics.
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