Joe Biggs is considering starting an ice cream truck business. His research reveals that he can purchase a used truck for R250,000. He estimates that the truck will last for three years, and he will be able to sell enough ice cream to generate after-tax cash flows of R200,000 during each of those years. Another ice cream truck is also for sale for R250,000. This truck is smaller and will not be able to hold as much frozen ice-cream. However, the truck is newer, with lower mileage, and Biggs estimates that he can use it for six years. This newer truck will allow him to generate after-tax cash flows of R150,000 each year for the next six years. Assuming Biggs’ cost of capital is 10%, which truck must he buy? Why?
Answers
The ice trucks which Joe Biggs should opt by using net present value (NPV) concept for comparing two alternatives which have different project life is truck A with 3 year life.
What is Net present Value?Net present value is a concept of financing decision made under capital budgeting project using time value of money. It is a difference between present value of outflows and present value of inflows incurred and earned respectively during the project tenure.
Similarly under mutually exclusive project alternatives where the project asset outlay is same but the respective project life is different then differential NPV shall be computed for making a wise decision.
Therefore Truck with life 3 years has more differential NPV than Truck with 6 year life. This can be understand by the tabular presentation given in the file attached.
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Related Questions
Which of the following is NOT a characteristic of the mitigation strategy?
Answers
A risk study is a procedure for evaluating and working out the risks connected to a project. It is not a risk-reduction strategy.
What is Risk Mitigation?Risk mitigation in project management refers to the procedure and steps done by the company to lessen or regulate the effect of the risks connected to a project. In the stage of risk mitigation, a company can employ a number of different techniques.
As part of a risk mitigation approach known as risk assumption, the company insures the risk under the premise that it won't be disastrous. Risk avoidance is a risk mitigation tactic in which the company stays away from high-risk activities or initiatives. A risk mitigation method called risk limitation entails taking specific steps to limit or reduce the danger connected to a particular project or activity.
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The industry-low, industry-average, and industry-high branded operating benchmarks on p. 7 of each issue of the Footwear Industry Report O have the greatest value to the managers of companies earning above-average operating profits per branded pair sold in one or more geographic regions. O are of very limited value to company managers in making decisions to improve company performance in the upcoming decision round because the benchmarking data do not identify which companies have the lowest/highest costs and operating profit margins per branded pair sold. O are of great value to the managers of companies whose costs per branded pair sold are above the industry average benchmark in at least two of the four geographic regions. O always merit close attention because when these benchmarks signal that a company's cost of branded pairs sold, distribution and warehouse costs, or operating profit margins in one or more geographic regions compare unfavorably, managers are well-advised to take immediate corrective actions in the upcoming decision round. O are of particular value to the managers of companies looking for convincing evidence that their company needs to cut branded footwear prices and spend more money on marketing efforts so as to increase sales of branded footwear and gain a bigger share of the market for branded footwear in one or more of the four geographic regions.
Answers
The industry-low, industry-average, and industry-high branded operating benchmarks are of great value to the managers of companies whose costs per branded pair sold are above the industry average benchmark in at least two of the four geographic regions.
Which brand is most widely used?Samsung, a computer and electronics business, is currently at the top of the list, making it the highest-ranked non-US corporation on the list of the top 10 brands in the world in 2022. It overthrows the dominant search engine company , which comes in second.
What determines a brand's success?A few elements, such as a potent and instantly identifiable brand name, a distinct brand identity, and a clearly defined target market, contribute to the success of a brand. A successful brand also has devoted patrons who are eager to recommend it to other potential clients.
Why is branding crucial?In addition to being what leaves a lasting impression on consumers, branding is crucial since it lets customers and clients know what to anticipate from your business. It is a strategy for standing out from the competition and emphasizing what it is about what you have to offer that makes you the better option.
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If your audience is trying to decide between competing proposals, you should use a ________ pattern of organization
Answers
Utilize a comparative advantage pattern of organization if your audience is trying to choose between competing proposals.
What do you mean by pattern of organization?A method called the organizational pattern helps you structure and arrange your ideas, thoughts, voice, and presentation for maximum impact. Effective communication and logical organisation depend on a secure connection between the sender and the recipient.
To ensure that the stated aim is achieved, the organizational structure aids in making sense of the data. It gives the information presented focus and direction, making it easier for the recipient to grasp and retain it.
The speech is more organized thanks to the organizational structure. It is a formal procedure; therefore the key ideas must be pertinent to the subject at hand and be balanced in terms of their relative importance.
Because of the organizational structure, you can choose and develop your primary points, employ the rules of clarity, support your particular objective, and ask for the audience's reaction. In order to ensure that clarity prevails at all costs, it helps to avoid chaos and confusion.
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The pharmaceutical industry spends heavily not only on scientific research, but on marketing. Drugmakers send representatives to physician's offices and provides them with incentives to prescribe their drugs. These representatives show that the industry relies on __________ and uses a _______ strategy.
Select one:
a. Trade promotion/ Pull
b. Personal Selling / Push
c. Advertising/Pull
d. Advertising / Push
Answers
These representatives show that the industry relies on Personal Selling and uses a Push strategy. Option B.
Under this law, physicians are compensated for referring patients for services paid in whole or in part by government health programs, or for recommending the prescription or purchase of medically paid drugs. It is illegal to receive wholly or partially through government health programs.
To prevent the influence of pharmaceutical companies physicians must have a clear goal of caring for their patients. We must also avoid any form of gift or entertainment. As a recommendation, Kriger et al. Nearly every country in the world has banned DTC advertising of healthcare products such as medicines and procedures. A few years ago, pharmaceutical advertising in the United States was primarily aimed at physicians.
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in the long run, given that the government pursues accommodative policy, the output level in the economy will equalbillion and the price level will equal. grade it now save
Answers
Increases go back to, & return to in the end, given that the government pursues an accommodative coverage, the output level in the economic system will equilibrium and the price stage will equal. grade it now keep.
If an economic system is stated to be in lengthy-run equilibrium, then actual GDP is at its potential output, the real unemployment fee will equal the natural charge of unemployment (about 6%), and the real charge level will same as the predicted fee stage.
The longer term is a time period in which all factors of production and costs are variable. in the long run, corporations are able to modify all costs, whereas in the quick run companies are most effectively able to persuade fees via changes made to production degrees.
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a seller-lessee and a buyer-lessor entered into a sale and leaseback transaction. the leaseback is classified as an operating lease, and the initial transfer meets the requirements for recognition of revenue from customers. when the transaction is not at fair value or based on market terms,
Answers
Both the seller-lessee and the buyer-lessor classify the leaseback as an operating lease, and the seller-incremental lessee's borrowing rate is 6% (the seller-lessee is unaware of the buyer-implicit lessor's interest rate in the leaseback).
Which of the following takes place in a sale-leaseback deal?
An asset is sold by an entity and immediately leased back from the buyer in a sale-leaseback transaction. The buyer then assumes the role of the lessor, while the seller switches roles.
When a sale-leaseback is involved, what kind of lease is typically used?
A net lease is typically utilised for a sale-leaseback because it lasts for a long enough amount of time for the investor to recover his money and turn a reasonable return.
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The majority of financing for the acquisition of land for development is most likely to come from which of the following parties?
A. Developer
B. Banks
C. Pooled equity of a limited liability corporation (LLC)
D. Insurance companies
Answers
The majority of financing for the acquisition of land for development is most likely to come from pooled equity of a limited liability corporation (LLC).
What is limited liability corporation(LLC)?
State legislation allows limited liability firms, and each state has its own set of rules controlling them. Members of an LLC are its owners.
Many jurisdictions don't impose ownership restrictions, so anyone—including people, businesses, people from other countries, foreign companies, and even other LLCs—can join. However, some organizations—including banks and insurance companies—cannot incorporate LLCs.
A formal business arrangement known as an LLC has to submit articles of formation with the state. An LLC offers greater flexibility and security for its investors than a corporation and is simpler to set up.
LLCs have the option to forgo paying federal taxes up front. Instead, the owners' personal tax returns are where their earnings and losses are declared.
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Colin was working on his budget. He had compiled his receipts, his employee's tim
others. He was now ready to assess his
Multiple Choice
income statement.
fixed budget.
assets.
liabilities.
Answers
According to the information, Colin was now ready to evaluate his income statement. Option A is correct.
What is the income statement?Corresponds to the statement of profit and loss over a period of time. That is, it is a finalized accounting document that demonstrates revenues, expenses and profitability.
Therefore, through the income statement, the individual or the company can have a real notion of its financial results during an accounting period and then make analyses, corrections and projections for a new period.
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Suppose that B2B, Inc. has a capital structure of 35 percent equity, 16 percent preferred stock, and 49 percent debt. Assume the before-tax component costs of equity, preferred stock, and debt are 14.0 percent, 10.0 percent, and 9.0 percent, respectively.
What is B2B’s WACC if the firm faces an average tax rate of 21 percent and can make full use of the interest tax shield?
Answers
Answer:
Cost of debt after tax = (9)(1 – tax rate)
= (9) (1 –0.21)
= 7.11%
WACC = Respective cost x Respective weight
= (0.35)(14) + (0.16)(10) +(0.49)(7.11)
= 9.9839%
= 9.98% (Approx.)
Explanation: Referred to the solution above
.
Example of taking responsibility and being accountable:
Example of the opposite of taking responsibility and being accountable:
Why does your employer want you to take responsibility and be accountable for your decisions and actions?
Why should you accept consequences?
Answers
Your employer want you to take responsibility and be accountable for your decisions and actions because It displays your professionalism, has the potential to further your career, fosters professional relationships among coworkers, and communicates to management that you are an important member of the team.
Accepting consequences enables you to move past your errors without being burdened by regret, guilt, or humiliation.
What do you mean by Responsibility?Being responsible entails carrying out your obligations and accepting the consequences of your decisions.
Every employee must take responsibility for their actions, behaviors, output, and decisions in the workplace. Additionally, it's associated with better levels of devotion to work and employee morale, both of which boost performance.
Therefore, Employer want you to take responsibility and be accountable for your decisions and actions because It displays your professionalism. Accepting consequences enables you to move past your errors without being burdened by regret, guilt, or humiliation.
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lemon inc has an existing bond. its par value is $1,000, its coupon rate is 8.0%. the bond is now selling for a market price of $980. calculate this bond's current yield: % . ( round your answer to the nearest two decimal places in a percentage. for example: if the answer is 2.22%, you should only put the decimal: 2.22 in the answer box, and leave out %) Use an attachment to show your work IF you want earn partial credit. Your Answer: Answer D Add attachments to support your work
Answers
The bonds current yields is 0.08
What is meant by current yield ?The annual return on an investment (interest or dividends) is calculated by dividing it by the security's current market value. Instead than focusing on a bond's face value, this metric looks at its current price.
Yield, which is often represented as a percentage, is the overall profit an investment earns over a specified period of time. A holding's return is the amount it gains or loses over time based on the change in its dollar value. The yield is looking ahead while the return is looking back.
Given,
existing bond = 1000
coupon rate = 980
bond's current yields = 1000/980*8/100=0.08%
Therefore The bonds current yields is 0.08
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if managers want to boost a company's credit rating from B+ to A, then they need to take actions that will result in: A)A bigger ratio of net profits to sales revenues and a decline in the company dividend ratio B) A decline in the company default risk ratio and an increase in the companys ROE C) A higher current ratio and fewer days of inventory D) an increase in the company interest coverage ratio and a decline in the company debt to asset ratio E) bigger year end cash balances, annual increases in EPS of 5% or more, and annual dividend increases of .10 per share
Answers
An increase in the company interest coverage ratio and a decline in the company debt to asset ratio.
What is asset ratio?
By dividing a company's earnings after taxes by its total assets, one may get the return on total assets ratio. This profitability indicator enables you to assess how your business makes profits and how you stack up against your rivals.
The ratio of a company's sales or revenues to the value of its assets is known as the asset turnover ratio. It serves as a gauge of how effectively a business uses its resources to generate revenue. As a result, asset turnover ratio can be used to gauge a business' performance.
The interest coverage ratio: defined as annual operating profit divided by annual interest payments. An interest coverage ratio of 2.0 is considered “rock-bottom minimum” by credit analysts. A coverage ratio of 5.0 to 10.0 is considered much more satisfactory for companies
Hence, an increase in the company interest coverage ratio and a decline in the company debt to asset ratio will boost the company credit rating
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jason, lead salesperson for mainstream health company, knows that the demand for his largest selling product is highly elastic. in order to increase revenue from that product he should consider all the following actions except
Answers
in order to increase revenue from that product he should consider all the following actions are:
Raising prices
Running a buy one/get one sale
Revenue refers to the whole earnings an enterprise generates thru its middle operations like sales of services or products, rents on assets, habitual bills, interest on borrowings, and so on.
Sales are every other word for the amount of cash a corporation generates from its sales. revenue is most clearly calculated as the number of units offered increased via the selling rate. due to the fact sales do not account for prices or charges, an enterprise's earnings, or backside line, may be decreased than its revenue.
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Which of the following illustrates the correct sequential stages involved in creating an effective social media plan?
A. Define strategies, identify the target audience, and set social media objectives.
B. Identify the target audience, define strategies, and set social media objectives.
C. Set social media objectives, define strategies, and identify the target audience.
d. Define strategies, set social media objectives, and identify the target audience.
Answers
Set social media objectives, define strategies, and identify the target audience illustrates the correct sequential stages involved in creating an effective social media plan.
Which of the following describes the first step in developing a successful social media plan?Setting up specific objectives and targets is the first step in developing an effective social media strategy. You cannot evaluate your success or return on investment without goals (ROI). Your social media marketing objectives should all be SMART objectives, which stand for specific, measurable, attainable, relevant, and time-bound.
Create a list of the goals you have for your social media efforts as the first stage in your measuring plan. Social media can be used for a variety of things, such as disseminating news and information, responding to client inquiries, and interacting with a community.
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while management science is a single discipline with a well-defined body of knowledge, includes the multiple disciplines that make up all of quantitative decision sciences.
Answers
Analytics includes the multiple disciplines that make up all of quantitative decision sciences. With the existence of analytics, it is hoped that good management can be created.
Analytics uses data and math to answer business questions, find relationships, predict unknown outcomes, and automate decisions. This diverse field of computer science is used to discover meaningful patterns in data and uncover new knowledge based on applied mathematics, statistics, predictive modeling, and machine learning techniques.
Analytics is a term that combines all the data analysis, collection, and presentation functions that data trackers automatically compile. This data can then be easily interpreted and applied to multiple uses to improve performance. Simply put, analytics helps us see meaningful insights and data that we might not otherwise have detected.
Business analytics focuses on using the insights gleaned from data to make more informed decisions that will help organizations increase sales, reduce costs, and make other business improvements.
The complete question:
management science is a single discipline with a well-defined body of knowledge, includes the multiple disciplines that make up all of quantitative decision sciences. then what is analytic through the management science?
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Classify ABC Inc. transactions as either an operating activity, an investing activity, a financing activity, or a noncash activity.
Cash received from sale of goods.
A Financing Activity
Noncash Activity
MERCYCOLLEGE
KK
2 3
4
B
5
D
1 of 32
Socrative
6
Operating Activity
Investing Activity
7
8
9
> >
Answers
The classification are as follows: investing activity , investing activity , financial activity , operating activity, .financial activity, financial activity.
How would you describe financing?The process of raising cash or finances for any type of expenditure is known as finance. It includes directing various economic resources—such as credit, loans, and investment capital—to those parts of the economy that can use them more effectively.
What kinds of finance are there?There are two main types of external finance: equity financing, which really is funding given in return for a portion of ownership and possible future earnings, and bank debt, which really is cash that must be repaid, typically with interest.
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calculate the amount of budgeted selling and administrative expenses for february. xing, inc. has prepared the operating budget for the first quarter of the yeqra. The company forecast sales of 40000 in january, 50000 in february, and 60000 in march. variable and fixed expenses are as follows
Answers
The amount Xing, Inc. budgeted for selling and administrative expenses for February is C. $35,700.
What are the selling and administrative expenses?The selling and administrative expenses include all the variable and fixed costs incurred for the following:
SalariesRentDepreciationPower costMiscellaneous expenses.To determine the total selling and administrative expenses, we first determine the total fixed costs per month and the variable costs.
The variable costs are a function of the budgeted sales for each month since a percentage of the sales have been identified as variable costs for power costs and miscellaneous expenses.
January February March
Budgeted sales $40,000 $50,000 $60,000
Variable costs:
Power cost $12,000 $15,000 $18,000
Miscellaneous 2,000 2,500 3,000
Total variable cost $14,000 $17,500 $21,000
Total fixed expenses per month = $18,200
Selling and administrative expenses for February = $35,700 ($17,500 + $18,200).
Thus, for February, Xing forecast to spend C. $35,700 on sales and administration, which may be more or less than the actual expenses for the month.
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Question Completion:Variable and fixed expenses are as follows:
Variable Expenses: Power cost (30% of sales)
Miscellaneous expenses: (5% of sales)
Fixed Expenses:
Salaries expense: $10,000 per month
Rent expense: $5,000 per month
Depreciation expense: $1,400 per month
Power cost/fixed portion: $800 per month
Miscellaneous expenses/fixed portion: $1,000 per month
Using the information above, calculate the amount of selling and administrative expenses for the month of February.
A. $32,200
B. $32,200
C. $35,700
D. $14,000
.
Example of dependability:
Opposite of dependability:
Why does your employer want you to demonstrate dependability?
Answers
Employer want you to demonstrate dependability because dependable employees are willing to assist clients and coworkers without his supervision, a company desires them.
What do you mean by Dependability?Dependability is characterized as the capacity to be trusted or depended upon.
Reliable and dependable in carrying out duties linked to the job, completing tasks given to them, and keeping appointments and deadlines. Keywords: Reliable, Consistent, and Stable. Additionally, having dependability might enhance the quality of your life. If you are dependable, people will know they can rely on you to show up on time, give an assignment your all, see it through, and even act morally when no one is looking.
Therefore, Employer want you to demonstrate dependability because dependable employees are willing to assist clients and coworkers without his supervision, a company desires them.
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Social investing:
Group of answer choices
was more popular in the 1960s than it is today
has little impact on whether a company chooses to operate with social responsibility
is a type of corporate philanthropy
is the practice of limiting investments to companies that have ethical policies that match those of the investor
is another name for strategic giving
Answers
The correct answer is "the practice of limiting investments to companies that have ethical policies that match those of the investor".
Social investing is the practice of limiting investments to companies that have ethical policies that match those of the investor. In other words, investors only choose to invest in companies with values, practices, and products they deem to be socially responsible.
This could include companies that practice sustainability, invest in renewable energy, promote diversity, or use fair labor practices. Social investing has grown in popularity in recent years, and many investors today are looking for ways to use their money to make a positive impact on society.
Social investing is an effective way to put your money to work while also supporting causes and businesses that you believe in.
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Why is it important to understand the amount of setup time required for each order?
Answers
Production capacity is limited because setup time cuts into available production time.
What is Setup Time Reduction?A method of minimizing the time required to switch a process from the final component for the outgoing product to the first functional component for the incoming product. The length of time it takes to finish a setup has an impact on manufacturing since it affects how adaptable a production process is determined.
Setup period, Setup time Reduction is the amount of time between the final successful run and the start of the succeeding run. Activities during setup time do not add value to the product value. Cutting down on setup time will increase a company's capacity, manufacturing flexibility, and overall output.
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The value of a put option is negatively related to the ____. stock price and volatility of the underlying stock price. volatility of the underlying stock price. stock price. exercise price.
Answers
The cost of a placed choice is negatively associated with the exercise price.
The required details about exercise price is mentioned in below paragraph.
The exercise price is the charge at which an underlying safety may be bought or bought while buying and selling a name or placed choice, respectively. It is likewise known as the exercise price and is understood while an investor initiates the trade.One key feature of an choice agreement is the agreed upon charge, referred to as the strike charge or exercise price.
The exercise price is the predetermined charge at that you buy (withinside the case of a name) otherwise you sell (withinside the case of a placed) an underlying futures agreement while the choice is exercised.
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In a bullseye chart, the amount by which actual unemployment and inflation differ from the Fed's target rates isA. Represented by the center of the red dotB. Found by drawing a triangle linking the center to two red dotsC. Found by looking at the position of the red dot relative to the centerD. Represented by the center of the bullseye
Answers
A represents the deviation between real unemployment and inflation rates and the Fed's goal rates in a bullseye chart. either the northwest or the southeast
What makes you ineligible for unemployment in California?
If the director determines that a person quit their most recent job willingly and without justification, or if they were fired for wrongdoing related to their most recent job, they are not eligible to receive unemployment benefits.
When should I submit an Arizona unemployment insurance claim?
You should apply for unemployment insurance (UI) benefits as soon as possible following your final day of employment since they are not retroactive. If you are still employed now,
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what is the swot of bench
Answers
Benchmarking, also known as dashboarding or scorecarding, is a monitoring mechanism for assessing advancement in the mission-critical areas determined by the SWOT analysis. The S.W.O.T. of bench analysis are given below:
What is the swot of bench?They are:
STRENGTHS
A strong sense of brand identity.Products are reasonably priced and of high quality.Specifically meet the demands of the target market.Strategic places are chosen for stores to be.Influential domestic and international backers.WEAKNESS
Products don't appeal to the market of higher social classes.has a few media advertisements, mostly on radio and TV.OPPORTUNITIES
bigger market shares in the followingCreate new items and enhance existing ones to target the market of upper class consumers.Boost your presence and internet presence. Expand your international business.Boost brand recognition and advertise in different media.Threats
Competitors also sell goods of the same caliber for less money.Keeping products current with the newest fashions.the price of increased marketing and advertising.Learn more about S.W.O.T. from
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the control system that addresses the assumptions that form the foundation of the organization is ____ control.
Answers
The control system that addresses the assumptions that form the foundation of the organization is informational control.
Informational controls: what are they?Information control, in its broadest sense, refers to a system where the control activities are implicit and indirect and the information provided to the controlled object takes the shape of an informative picture that it uses to formulate an ostensibly independent line of activity.
What advantages does information control offer?Improved efficiency – appropriate information at the appropriate time. Better performance and effectiveness thanks to appropriate knowledge and timing. persistent responsiveness and rivalry. increased innovation and creativity.
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Due care is the idea that consumers and sellers do not meet as equals and that the consumer's interests are particularly vulnerable to being harmed by the manufacturer, who has knowledge and expertise the consumer does not have.
True
Answers
Diligence is the idea that consumers and sellers do not meet on an equal footing, and that the interests of consumers run the risk of being particularly harmed by manufacturers who are tempted to purchase their products.
In sales, business, and economics, a customer is someone who buys something for money or other value from a vendor, vendor, or supplier. This person is also called the customer, purchaser, or purchaser.
There are four types of buyer-seller relationships: transactions, functions, partnerships and strategies. His four basic sales strategies used by salespeople are scripted selling, needs-satisfaction selling, consultative selling, and strategic partner selling.
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The Hudson Corporation makes an investment of $66,700 that provides the following cash flow:
Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.
Year Cash Flow
1 $33,000 2 33,000 3 21,000 a. What is the net present value at a discount rate of 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places.)
b. What is the internal rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
c. Would you make the same decision under both parts a and b?
Yes
No
Answers
The net present value at a discount rate of 10 percent is $6350.34, and the internal rate of return is 15.73174%.
Discount rate, (R)= 10% = 0.10
Year 1 cash flow, C1 = $33,000
Year 2 cash flow, C2 = $33,000
Year 3 cash flow, C3 = $21,000
Initial investment , I = $66,700
NPV = [ (C1/(1.10)) + (C2/(1.10)²) + (C3/(1.10)³) ] - I
= [(33000/(1.10)) + (33000/(1.10)²) + (21000/(1.10)³) ] - 66700
= [30,000 + 27272.72727 + 15777.61082] - 66700
= 6350.338092
= $6350.34
B - IRR is the rate of return for which NPV = 0
NPV = Present value of the project's cash inflows - initial investment
Putting NPV = 0
Present value of the project's cash inflows = initial investment
[(C1/(1 + IRR)) + (C2/(1 + IRR)²) + (C3/(1 + IRR)³)] = I
[(33000/(1 + IRR)) + (33000/(1 + IRR)²) + (21000/(1 + IRR)³)] = 66700
We must use the trial-and-error approach to determine IRR.
We want IRR to be such that by assuming any value and replacing it with the anticipated value in the equation above.
Left Hand side of equation(LHS) = Right hand side of equation (RHS) = 66700
By following this method we find that for IRR = 15.73174%
LHS = RHS
Hence IRR = 15.73174% or 15.73%
C - Due to the fact that NPV > 0 and IRR > discount rate, the project would be approved in both scenarios.
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porter's diamond framework to explain national competitive advantage includes four interrelated factors: demand conditions, competitive intensity in a focal industry, related and supporting industries/complementors, and .
Answers
Porter's diamond framework to explain national competitive advantage includes four interrelated factors: demand conditions, competitive intensity in a focal industry, related and supporting industries/complementors, and factor condition.
Porter Diamond refers to an economic model that helps you understand what gives one group, organization, or country a competitive advantage over another. Also known as the Porter Diamond of National Advantage theory, this theory was developed by Michael Porter in 1990 and states that certain industries in certain countries are internationally competitive and others are not.
Porter's Diamond Theory states that the success of a particular industry depends on other related industries. Supporting industries can strengthen an organization's market position and create a competitive advantage through its chain of supply, the exchange of ideas and resources.
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"Tips" published in leading commercial or financial publications are unlikely to lead to profitable trades because
A) only wealthy individuals can buy stocks in the volume necessary to take advantage of tips.
B) whatever is gained by trading on the basis of tips will be taxed away by the government.
C) the news will already be reflected in the market prices of the assets.
D) the news contained in the tips is usually inaccurate.
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It's doubtful that "tips" found in reputable business or financial journals will result in trades that are profitable because? Ans. B) The government will tax anything obtained from trading using tips.
In terms of money, what do tips mean?A Treasury bond known as a Treasury Inflation-Protected Securities (TIPS) is indexed to an inflationary measure to shield investors from a decrease in the purchasing power of the money. The interest payment fluctuates with the modified principal of the bond whereas the principal price of TIPS increases as inflation does.
Can tips be a loss-maker?Deflation protection is consequently provided to investors who purchase new-issue TIPS, but not to those who purchase TIPS on the secondary market. When purchasing a TIPS with an existing If the CPI starts to fall after the adjustments have been made higher, you can potentially lose money.
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Problem 2 Condensed income statements for Werly Corporation are shown below for two years 2016 2017 $75,000 $90,000 Sales Cost of Goods Sold Gross Profit Operating Expense Net Income 45,000 54,000 $30,000 $36,000 15,000 15,000 $15,000 $21,000 Compute the corrected net income for 2016 and 2017 assuming that the inventory as of the end of 2016 was mistakenly understated by $5,000. 2016 2017 $
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The corrected net income for 2016 is $35,000 and the corrected net income for 2017 is $21,000.
How to find net income ?To compute the corrected net income for 2016 and 2017, we need to determine the effect of the incorrect inventory on the cost of goods sold for each year.
For 2016, the cost of goods sold was $45,000, and the inventory was understated by $5,000. This means that the actual inventory at the end of 2016 was $5,000 higher than reported, or $45,000 + $5,000 = $50,000. The corrected cost of goods sold for 2016 is calculated as follows:
Corrected cost of goods sold = Beginning inventory + Purchases - Ending inventory
Corrected cost of goods sold = $0 + $75,000 - $50,000
Corrected cost of goods sold = $25,000
The corrected gross profit for 2016 is calculated as follows:
Corrected gross profit = Sales - Corrected cost of goods sold
Corrected gross profit = $75,000 - $25,000
Corrected gross profit = $50,000
The corrected net income for 2016 is calculated as follows:
Corrected net income = Corrected gross profit - Operating expenses
Corrected net income = $50,000 - $15,000
Corrected net income = $35,000
For 2017, the cost of goods sold was $54,000, and the inventory was not understated. The corrected cost of goods sold for 2017 is the same as the reported cost of goods sold, or $54,000.
The corrected gross profit for 2017 is calculated as follows:
Corrected gross profit = Sales - Corrected cost of goods sold
Corrected gross profit = $90,000 - $54,000
Corrected gross profit = $36,000
The corrected net income for 2017 is calculated as follows:
Corrected net income = Corrected gross profit - Operating expenses
Corrected net income = $36,000 - $15,000
Corrected net income = $21,000
Therefore, the corrected net income for 2016 is $35,000 and the corrected net income for 2017 is $21,000.
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A report based on a review of interim financial information (IFI) would include all of the following elements except
A. A representation that the financial statements are the responsibility of the auditor.
B. A description of the procedures for a review of interim financial information.
C. A statement about whether the auditor is aware of any material modifications that should be made to the accompanying financial information so that it conforms with the applicable financial reporting framework.
D. An identification of the interim financial information reviewed.
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A report based on a review of interim financial information (IFI) would include all of the following elements except A. A representation that the financial statements are the responsibility of the auditor.
Financial statements are formal records of the monetary activities and position of an enterprise, character, or different entity. applicable financial statistics are offered in a structured manner and in a shape that is simple to understand.
They may be: (1) stability sheets; (2) income statements; (three) coins float statements; and (4) statements of shareholders' equity. balance sheets display what a business enterprise owns and what it owes at a hard and fast factor in time.
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