If Nixon uses a periodic inventory system, the July 15 entry would include a debit to the Purchases account and a credit to the Accounts Payable account.
The entry on July 23 would include a debit to Accounts Payable and a credit to Cash for the amount paid. The entry on August 15 would include a debit to Accounts Payable and a credit to Cash for the amount still owed plus interest.
A periodic inventory system is an inventory management system in which a physical count of stock is taken at regular intervals, such as once a month or once a quarter. The physical count is compared to the inventory records to determine the quantity of stock on hand. This system is used to identify discrepancies in inventory records and to update the records with the actual amount of stock on hand.
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Assume there are external benefits associated with the production of good X. Without
government regulation, the market will:
A) produce too much of good X.
B) price good X less than the marginal social cost.
C) price good X less than the marginal social benefit.
D) price good X greater than the marginal cost.
There are external benefits which are associated with the production of good X. Without government regulation, the market will price good X less than the marginal social benefit.
Government regulations are effectively rules which tend to define the bounds of the legal behavior. So, most of the regulations are seen to be expressed in a natural language.
However, when the negative externalities which of consumption such as pollution are seen to be created, the marginal social benefits will then be less than the marginal private benefits. Marginal benefit is considered to be the change in benefits resulting from the consumption of one additional unit.
Hence, option C is correct.
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meg o'brien received a gift of some small-scale jewelry manufacturing equipment that her father had used for personal purposes for many years. her father originally purchased the equipment for $1,500. because the equipment is out of production and no longer available, the property is currently worth $4,000. meg has decided to begin a new jewelry manufacturing trade or business. points What is her depreciable basis for depreciating the equipment?
şince Cost basiş i.c. $1500 iş eşşer than the fair market value i.e $4000. Therefore M's Depreciable basis for jewelry Equipment would be $1500.
The price an asset would sell for in the market, or the value the investment community assigns to a certain equity or company, is known as market value (also known as OMV, or "open market valuation").
The term "market value" is also frequently used to describe a publicly traded company's market capitalization, which is derived by dividing the number of outstanding shares by the current share price.
Since exchange-traded instruments' market prices are widely distributed and readily accessible, determining market value for securities like stocks and futures is the simplest. The hardest part of figuring out market value, however, is assessing the worth of illiquid assets like real estate and enterprises, which may call for the help of real estate appraisers and company valuation specialists, respectively.
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blue mouse manufacturers is considering a project that will have fixed costs of $15,000,000. the product will be sold for $37.50 per unit, and will incur a variable cost of $10.75 per unit. given the cost structure of blue mouse, it will have to sell units to break even on this project (qbeqbe).
1. Breakeven point = fixed costs/(selling price - variable cost.)
Breakeven point = 15000000/(37.50-10.75) = 560748 rounded
2. Breakeven point = fixed costs/(selling price - variable cost.)
150000 = 15000000 (X-10.75)
150000(x-10.75)=15000000
X-10.75= 100.00
X = 110.75
3. The amount of debt increases No change
The product's sales price increases Decreases
The firm's fixed cost increase Increase
4. Very big (Drop - down menu not provided)
When fixed costs are high, A small decline in sales leads to a very big decline in ROI.
Fixed costs are costs that remain constant over a period of time, regardless of the level of service. Variable costs are costs that change in direct proportion to changes in the level or volume of business activity. Even if the output is zero there are fixed costs.
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A 2015 Wells Fargo/Gallup Small Business Index survey found that only ____ percent of business owners have a formal business plan.
A. 92
B. 84
C. 11
D. 55
E. 33
Small Business Index survey found that only 33 business owners have a formal Business plan.
The Small Business Index consists of small-business possessors' conditions of their business' current situation and their prospects for the coming 12 months. It revealed that most business owners start a business without any proper plan and tend to have losses.
A business plan is a document that contains details about the company's goals and objectives. A business plan lays out a written road chart for the establishment from marketing, fiscal, and functional slants.
A strong, detailed plan will give a road chart for the business's coming three to five times, and you can partake in it with implicit investors, lenders, or other important mates. This helps us decide which route the business will go.
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13. liam plans to print parts of the loan calculator workbook. prepare for printing as follows: a. set row 3 as the print titles for the worksheet. b. set the range f3:i11 as the print area.
1. Update the defined names in the worksheet as follows:
Search for "name manager" in the "tell me what you want to do" tab, select it and delete the Loan Calculator name
Select cell B8, and change the defined name to Loan Amount in the tab to the left of the formula bar.
In cell B8, calculate the loan amount by entering a formula without using a function that subtracts the Down_Payment from the Price
Use the formula (1-B7/B6)*B6
A worksheet in its number one which means is certainly a chunk of paper this is used to work on. this may be to finish a task, to log or accompany paintings, and they're usually utilized in faculty, finance, and tax.
In Microsoft Excel, a sheet, sheet tab, or worksheet tab is used to display the worksheet that a person is currently editing. By clicking a worksheet tab (positioned at the bottom of the window), users can also move between the diverse worksheets. every Excel file can also have more than one worksheet, however, the default quantity is three.
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Cost of goods sold is $240,000. accounts payable increased by $2,000. inventory increased by $6,000. cash paid to suppliers is:a. $107,000.b. $103,000.c. $100,000.d. $93,000.
Additional costs that may be incurred include material, overhead and labor costs associated with the actual closing process. Incremental costs simply mean the total costs incurred to produce an additional unit of product.
Cash paid to supplier = Cost pf goods sold + Increase in inventory - Increase in accounts payable
Cash paid to supplier = 100,000 + 5,000 - 2,000
Cash paid to supplier = 103,000
This is simply calculated by analyzing the additional costs of the company. These are the materials, overhead and labor costs associated with the actual closing process. In manufacturing, research, retail, and accounting, an expense is the value of money that was used to produce something or provide a service and is therefore no longer available. In business, the cost can be the purchase price, in which case the cost is the amount of money used for the purchase.
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which of the following would cause a bond's price to go up? the central bank increases the prime rate moody's credit rating agency increased their rating for this company from a to aa the inflation rate goes down all of these will cause a bond's price to fall
Bond values will rise as a result of changes in interest rates, inflation, and credit ratings.
The present value of the coupon payments and the face value of the bonds are used to compute bond values. The present value of the coupons will increase with increasing coupon size. Bond prices and interest rates are unrelated. Accordingly, bond prices decrease as interest rates rise and increase when interest rates fall.
In essence, a bond's price fluctuates according to the value of the income given by its coupon payments in comparison to general interest rates. Bonds lose all of their appeals if market interest rates rise beyond their coupon rate.
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corporations allowed to deduct interest payments as an expense. corporations allowed to deduct dividend payments to stockholders as an expense. the differential tax treatment of interest payments and dividend payments encourages firms to use in their capital structure. debt financing is expensive than common or preferred stock financing.
Corporations are allowed to deduct interest payments as expenses. Corporations are not allowed to deduct dividend payments to stockholders as an expense. The differential tax treatment of interest payments and dividend payments encourages firms to use debt in their capital structure.
A shareholder (within the u.s.a. frequently known as stockholder) of a business enterprise is an individual or prison entity (consisting of any other enterprise, a frame politic, a trust or partnership) that is registered with the aid of the corporation because the felony owner of stocks of the share capital of a public or private business enterprise. Shareholders may be referred to as members of a business enterprise. someone or criminal entity will become a shareholder in a employer whilst their call and different details are entered within the corporation's register of shareholders or contributors,[1] and unless required by means of law the business enterprise is not required or accredited to investigate as to the useful possession of the stocks. A agency typically cannot own stocks of itself.
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he following units of an inventory item were available for sale during the year. line item description units and cost beginning inventory 10 units at $55 first purchase 25 units at $60 second purchase 30 units at $65 third purchase 15 units at $70 the firm uses the periodic inventory system. during the year, 60 units of the item were sold. the ending inventory cost rounded to the nearest dollar using weighted average cost is a.$1,353 b.$1,375 c.$1,150 d.$1,263
Option (b) The weighted average cost results in an ending inventory cost of $1,375.
What is the weighted average cost calculation formula?The Weighted Average Cost (WAC) technique of accounting inventory valuation uses a weighted average to establish the COGS and inventory levels. In the weighted average cost technique, the cost of the goods being sold is divided by the number of items being sold.
To get the weighted average cost, divide the total cost of the products by the number of stockpile units. The cost of the items that are currently for sale must be calculated based on the amount of beginning inventory and most recent acquisitions.
When Is First In, First Out (FIFO) Used?The FIFO approach is used to determine cost flow assumptions. When a product advances through subsequent stages of development and is sold, the accompanying expenditures for that product must be reported as a manufacturing expense.
The following graph illustrates how FIFO was used to calculate the value of ending inventory:
However, we must first calculate the ending inventory units.
= Total purchase units - sales units
= 80 units - 60 units
= 20 units
Total units purchased are:
= 10 units + 25 units + 30 units + 15 units
= 80 units
The final inventory is so
= 15 units × $70 + 5 units × $65
= $1,050 + $325
= $1,375
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company zeta is a company that hires employees based on their ability to fit into the ten core values of the company. there is a team dedicated to setting up fun events, lunches and programs. employee team building is stimulated through the group cleaning of communal spaces and random group lunches with employees from different teams within the company. these strategies are an example of addressing which of the following?
In a case where a company called zeta which is said to hire employees based on their ability to fit into the ten core values of the company. These strategies are said to be an example of addressing organizational culture.
Organizational culture is described as the one which is said to be generally understood as all of the company's beliefs, as well as the values and also the attitudes, and how these tend to influence the behaviour of its employees.
So there are such strategies which are an an example of addressing organizational culture. However, it is noted that the Culture do affects how people experience an organization.
Hence, this can be attributed to the structure of an organization.
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Question 7
Ms. White has started her job and wanted to save her money in one way or other. But instead of
saving money in the bank, she wished to invest it so that money could earn a return. She is
intimidated by her friend's investment growth and decides to do the same. She decided to
purchase a bond with face value $1,000. The annual coupon payment for the cond is 9%. The
interest rate of the bond is 13% and maturity 2. She knew that the maturity levels and interest
rate of the bond impact its price. So to test the same statement, she purchased 2 more bonds
with the same specifications, except, one with maturity 2 and interest rate 10% while the other
with maturity 3 and interest rate 13%. Determine the impact of change in the value of the bond.
A: The bond selling price is $773.98 when interest rate decrease to 10% and $819.01 when
maturity increases to 3.
B: The bond selling price is $796.46 when interest rate decrease to 10% and $853.63 when
maturity increases to 3.
C: The bond selling price is $982.64 when interest rate decrease to 10% and $835.07 when
maturity increases to 3.
D: The bond selling price is $900.00 when interest rate decrease to 10% and $979.65 when
maturity increases to 3.
The impact of the change in the value of the bond, given the bond face value and the maturity, is C: The bond selling price is $982.64 when interest rate decrease to 10% and $835.07 when maturity increases to 3.
How is bond value affected by interest and maturity ?The likelihood that inflation may increase quickly at some point and drop a bond's price increases with the bond's maturity. In order to draw purchasers who would otherwise be concerned about rising inflation, bonds with a long maturity must provide slightly higher interest rates.
Interest rates and bond prices are inversely correlated. Accordingly, bond prices decrease as interest rates rise and increase when interest rates fall.
Using a bond value calculator, when the interest of the bond decreases to 10 %, then the value of the bond would become $ 982. 64. Using that same bond value calculator, the value of the bond would be $ 835.07 if the maturity was to increase to 3.
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Reseller Markets: consist of intermediaries, such as wholesalers and retailers, which buy finished goods and resell them for profit.
Reseller markets do not change the physical characteristics of the products they handle. Except for items producers sell directly to consumers, all products sold to consumer markets are first sold to reseller products.
Wholesalers purchase products for resale to retailers, other wholesalers, producers, governments, and institutions.
Resellers consider demand for a product to determine in what quantity and at what prices the product can be resold. Retailers assess the amount of space required to handle a product relative to its potential profit,
Resellers also take into account the ease of placing orders and the availability of technical assistance and training programs from products.
Reseller Markets: These are marketplaces where finished goods are purchased by middlemen who then resale them for a profit, like wholesalers and retailers. It's true.
It is evident to me that this subject merits our attention after reading some of the responses left after my question about which new gTLDs the reseller market will desire yesterday.
Some domainers believe that a reseller market for an extension can exist only if there is a large amount of liquidity. I reject that.
Undoubtedly, the more liquidity, the better, but this does not imply that we can *only* demonstrate the existence of a reseller market if there is a high level of liquidity. We can have reseller markets with a reasonable level of liquidity or, why not, even with a low level of liquidity.
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Listed below are four macroeconomic theories. Which of the four are most closely tied to the assumptions necessary for the results predicted by the natural rate hypothesis? Classical macroeconomics, since the key concerns of the natural rate hypothesis are based on a vertical short-run aggregate supply curve Rational expectations, since the key concern of the natural rate hypothesis is that people will begin to expect the inflation incurred by attempts to keep the unemployment rate below the natural rate, resulting in an accelerating rate of inflation necessary to do so Real business cycle theory since the ultimate goal of the natural rate hypothesis was a low natural rate of unemployment, its proponents encouraged low tax rates to entrepreneurs, encouraging investment in technology research and development (which would ultimately lead to more jobs and less unemployment) Political business cycle theory -the natural rate hypothesis was warning about the consequences of the same short periods of economic growth just before elections (and subsequent painful returns to the status quo) that concerned political business cycle theorists
Classical macroeconomics, since the key concerns of the natural rate hypothesis are based on a vertical short-run aggregate supply curve.
The self-regulating nature of the economy is the core tenet of the classical theory. The natural level of real GDP or production, which is the level of real GDP attained when the economy's resources are completely utilized, is the level of real GDP that classical economics assert the economy is always capable of obtaining. There are self-adjustment mechanisms within the market system that work to bring the economy back to the normal level of real GDP even when there are occasionally situations that lead it to fall below or surpass that level.
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FILL IN THE BLANK. most businesses spend between and less than conducting marketing research on their last product or service launched.
Most business spend between one to 6 months and much less than $1,000 accomplishing marketing studies (research) on their ultimate products or services launched.
What is the principle consciousness of marketing studies?The number one motive of accomplishing marketplace studies is to apprehend or look at the marketplace related to a selected products or services, to determine how the target market will react to a products or services.
What are the steps in marketing studies?Define the Problem. Develop the Research Strategy. Acquire the Research Materials. Collect the Data. Analyze the Data. Compile the Data. Implement Data-Driven Strategies.
What are the first-class marketing studies?1) Surveys. Surveys are the maximum broadly used marketplace studies method, and that is no surprise. 2) Individual Interviews. 3) Focus Groups. 4) Observation. 5) Field Trials.
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TRUE/FALSE. when more and more factories move out of the cities each year, manufacturing jobs, historically the first step into the job market for the urban poor
The Civil War sparked US industrialization. Industry, urbanization, and the mass urban workforce developed from the rapid spread of the railroad across the nation and the surpluses from mechanized agriculture. The industry grew steadily in the US labor force from 1840 to the early 1950s, interrupted only by the Great Depression.
This business spurred city building in Philadelphia, New York, Detroit, Chicago, and St. Louis. After the Second World War, suburbanization halted this development. Because of deindustrialization, the United States is no longer able to sustain a stable urbanized working class, which has led to the social and physical deterioration of metropolitan areas that have been only somewhat mitigated by the more recent urban gentrification and the concomitant service sector jobs.
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The right question is:
When more and more factories move out of the cities each year, manufacturing jobs, historically the first step into the job market for the urban poor, have become fewer and fewer.
(A) When more and more factories move out of the cities each year, manufacturing jobs, historically the first step into the job market for the urban poor, have become fewer and fewer.
(B) At the time that more and more factories move out of the cities each year, manufacturing jobs, historically the first step into the job market for the urban poor, become less and less.
(C) When more and more factories move out of the cities each year, then manufacturing jobs, historically the first step into the job market for the urban poor, become less and less.
(D) Since more and more factories have moved out of the cities each year, manufacturing jobs, historically the first step into the job market for the urban poor, have become less and less.
(E) As more and more factories move out of the cities each year, manufacturing jobs, historically the first step into the job market for the urban poor, become fewer and fewer.
jillian runs a cupcake shop where she sells cupcakes for $1 each. she employs five people, each of whom worked a total of 500 hours last year; she paid them $10 per hour. her costs of equipment and raw materials add up to $75,000. her business ability is legendary, and other companies have offered to pay jillian $100,000 to come to work for them. she also knows she could sell her cupcake shop for $150,000. the bank in town pays an annual interest rate of 3% on all funds deposited with it.
$2,000. When a person makes a quick decision without taking the time to compare the opportunity cost of all possible options, he or she is using: the status quo.
If the accounting profit for a firm is negative, the: The correct answer is d) firm will not owe any taxes to the government. Firms do not owe taxes when operating at profit loss.
What if the accounting profit is negative?
A negative net income means a company has a loss, and not a profit, over a given accounting period. While a company may have positive sales, its expenses and other costs will have exceeded the amount of money taken in as revenue.
Accounting profit is greater than or equal to economic profit. Accounting profit is determined by total income minus the business costs that are indicated in the ledger accounts.
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FILL IN THE BLANK basic activities in every accounting department, including sales order processing, accounts receivable, inventory and purchasing, accounts payable, and payroll, are recorded in the ______
Basic activities in every accounting department, including sales order processing, accounts receivable, inventory and purchasing, accounts payable, and payroll, are recorded in the general ledger.
Define a general ledgerA general ledger (GL) is a collection of numbered accounts that a company uses to record its financial activities and generate financial reports. Each account is a distinct record that includes a summary of a particular class of asset, liability, equity, revenue, or expense. All transaction information is contained in general ledger accounts, which are used to create the income statement, balance sheet, and other financial reports.
Transactions done to sub-ledger accounts as journal entries are summarized in general ledger transactions. The total debits must be subtracted from the total credit to balance a general ledger. The left side of a ledger should always contain debit accounts, and the right side should always have credits.
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Unless there is an agreement to the contrary, the broker acting as principal to the broker’s salesassociate owes his sales associate/agent the duty or duties ofa.Performance and compensationb.Indemnification and reimbursementc.All of the aboved.None of the above
The broker acting as principal owes his sales associate/agent the obligation or duties, unless there is a specific agreement to the contrary. Option C is the proper response to this question.
Sales are actions that involve the sale of products or the quantity of things sold over a predetermined period of time. A sale also includes rendering a service in exchange for payment.
The seller or provider of the goods or services completes a sale if a purchase, appropriation, requisition, or direct interaction with the consumer takes place at the point of sale. A price is agreed upon for which the ownership of the item will pass, and title (property or ownership) of the thing is transferred. The seller frequently completes the transaction rather than the buyer, and it could be done before the loan is due.
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allied receives payment from macy for the amount owed on the may 5 purchase; payment is net of returns, allowances, and any cash discount.
Allied Merchandisers was organized on May 1. Macy Co. is a major customer buyer of Allied seller products.Prepare journal entries to record the following transactions
Allied assuming it uses a perpetual inventory system and the gross method.Allied estimates returns using an adjusting entry at each year-end,May 3 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 cash per unit (for a total cost of $20,000)5 Allied sold 1,500 of the units in inventory for $14 per unit invoice total: $21,000 to Macy Co. under credit terms 2∕10, n∕60.The goods cost Allied $15,000.7 Macy returns 125 units because they did not fit the customer’s needs invoice amount: $1,750,Allied restores the units, which cost $1,250, to its inventory.8 Macy discovers that 200 units are scuffed but are still of use and, therefore, keeps the units. Allied sends Macy a credit memorandum for $300 toward the original invoice amount to compensate for the damage15 Allied receives payment from Macy for the amount owed on the May 5 purchase payment is net of returns, allowances,and any cash discount.
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a business management system includes three main components: a decision-making information system, a predictive information system, and a
A business management system includes three main components: a decision-making information system, a predictive information system, and database management system
Database management system "DBMS". Essentially, it is general-purpose software that helps create and manage database systems. A database management system essentially provides a systematic way to create, update, and manage user data.
A DBMS essentially allows an end user to read, create, delete, and update specified data in a database system.
Information system entails gathering the required data (raw materials or inputs) and processing that data to produce informative information. Three terms—management, information, and system—need to be defined clearly in order to comprehend MIS.
The human element of information system management is the last and possibly most crucial one. the individuals needed to run the system, the procedures necessary to convert knowledge from big databases and data warehouses into learning, and the procedures necessary to analyze what occurred. back then.
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according to fasb statement no. 109, accounting for income taxes, justification for the method of determining periodic deferred tax expense is based on the concept of matching of periodic expense to periodic revenue. objectivity in the calculation of periodic expense. recognition of assets and liabilities. consistency of tax-expense measurements with actual tax-planning strategies.
According to fasb statement no. 109, accounting for income taxes, justification for the method of determining periodic deferred tax expense is based on the concept of Recognition of assets and liabilities.
Recorded at the right aspect of the balance sheet, liabilities consist of loans, accounts payable, mortgages, deferred revenues, bonds, warranties, and amassed fees. Liabilities may be contrasted with belongings. Liabilities talk over things that you owe or have borrowed; property is matters that you personally or are owed.
The land is classified as an extended-time period asset on a business's stability sheet because it typically isn't predicted to be converted to cash in the span of a year. The land is considered to be the asset with the longest existence span.
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a starch test uses which of these to score an advertisement? multiple choice the percentage that would recommend the product to a friend the percentage who plan to purchase the product after seeing the ad the percentage of those are familiar with the product or brand the percentage that find the advertisement appealing the percentage of those who remember seeing a specific ad
A starch test uses which of these to score an advertisement percentage of those who remember seeing a specific ad. Last option.
What is meant by an advertisement?Advertising is defined as a practice in which the public is drawn to something, usually a good or service. A product, brand, or service is advertised to a viewership through the use of an advertisement to pique their attention, encourage interaction, and increase sales.
A marketing strategy known as advertising involves purchasing real estate to advertise a good, bad, or intangible idea. Ads, as they are commonly known, are the real advertising messaging.
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A U.S. bank borrowed dollars, converted them to euros, and invested in euro-denominated CDs to take advantage of interest rate differentials. To cover the currency risk the investor should
A. sell dollars forward.
B. sell euros forward.
C. buy euros forward.
D. sell euros spot.
E. none of the above
As per the concept of interest rate, to cover the currency risk the investor should Sell Euros forward.
What is meant by interest rate?
In general terms, interest rate refers the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
Here we know that A U.S. bank borrowed dollars, converted them to euros, and invested in euro-denominated CDs to take advantage of interest rate differentials.
And we need to find what should the the investor should do over the currency risk.
Here we know that the currency exchange rate of US dollar is comparatively higher than the euro. So, the solution to this one is to sell them.
Therefore, option (B) is correct.
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Nataro, Incorporated, has sales of $680,000, costs of $342,000, depreciation expense of $86,000, interest expense of $53,000, a tax rate of 23 percent, and paid out $40,000 in cash dividends. The firm has 29,800 shares of common stock outstanding.
a. What is the earnings per share, or EPS, figure? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b. What is the dividends per share figure? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Part a: Earnings Per Share (EPS) = $5.14
Part b: Dividend per share = $1.67
Earnings Per Share (EPS) refers to the earnings of each shareholder of company
Earnings Per Share (EPS) = Net income of company/ Number of common shares outstanding
Calculation of Earnings Per Share (EPS):
Particulars Amount
Sales $680,000
Less: Costs $342,000
Depreciation $86,000
Interest expense $53000
Earnings before tax $199,000
Less: Tax at 23% $45,770
Net income (A) $1,53,230
Number of common shares outstanding (B) 29800
Earnings Per Share (C) = (A) / (B) = 5.14
Hence, earnings Per Share (EPS) = $5.14 (round off)
Part b:
We know, dividend per share = Total amount of dividends paid/ Number of common shares outstanding
So, Dividend per share = $40000 / 29800
So, the Dividend per share = $1.34
Hence, dividend per share = $1.67 (round off)
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firms with higher expected growth rates tend to have p/e ratios that are the p/e ratios of firms with lower expected growth rates.
Firms with higher expected growth rates tend to have P/E ratios that are Higher than the P/E ratios of firms with lower expected growth rates. Correct answer: letter B.
What are the growth rates of companies?Investors are willing to pay higher prices for stocks of companies with high expected growth rates, as they are confident that the stock price will increase in the future. This higher demand for the stock of these companies drives up the price, thus making the P/E ratio higher. On the other hand, investors tend to be more conservative and less willing to pay higher prices for stocks of companies with lower expected growth rates, thus leading to lower P/E ratios.
Growth rates vary from company to company but generally speaking, the growth rate of a company is a measure of the rate of increase of the company’s revenues or profits over a period of time. Generally, high-growth companies tend to have higher growth rates than low-growth companies.
A company’s growth rate can also be compared against the industry average or the “market” average. Growth rates can be measured on a quarterly, yearly, or multi-year basis.
Firms with higher expected growth rates tend to have P/E ratios that are ___________ the P/E ratios of firms with lower expected growth rates.
A) Lower than
B) Higher than
C) Equal to
D) There is not necessarily any linkage between risk and P/E ratios.
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a grocer purchases coconuts for $2.85 per pound and sells them for $4.66 per pound. at the end of the sales cycle, leftover coconuts are sold for a closeout price of $1.68 per pound. the grocer purchases 10,340 pounds of coconuts. expected demand is normally distributed with a mean of 8,272 pounds and a standard deviation of 1,034.
Round your answer to two decimal places. What is the grocer's expected profit?
The supermarket's anticipated profit is $1836.05
Actual order quantity.= 10340
Purchase price of coconut = $2.85
Selling price of coconut = $4.66
Calculating the cost of understocking (Cu) -
= Selling Price - Purchase Price
= 4.66 - 2.85
= 2.30
Calculating the Salvage Value-
= Purchase Price - Closeout price
= 2.85 - 1.68
= 1.10
Calculating the service level -
Cu/(Cu+Co)
= 2.30 / (2.30+1.10).
= 0.6765
As per the NORM.S.INV excel function -
NORM.S.INV(0.6765)
= 0.4579
Now,
Mean Demand = 8272 and Sd of Demand = 1034
Calculation Optimum order quantity -
Q = 8272 + 0.4579 × 1034
= 8745.46
Expected Profit -
= 8745.46 × 2.30 - (10340 - 8745.46 ) × 1.10
= 20114.55 - 1753.99
= 18360.56
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In agency relationships in business, duties of the agent include which of the following (select all that apply).
Group of answer choices
Obedience
Loyalty
Performance
Notifcation
Accounting?
Only the agent's legal authority is terminated when an agency is dissolved; his implied authority is still in place. The correct response is C. Performance.
The principal's passing results in the agent's other apparent power being terminated. A trust-based legal arrangement known as a fiduciary obligation depends on honesty and goodwill. Fiduciary responsibility to an adjuster.
Uphold the financial interests of the principal, often the insurer's be truthful in all representations of the principal. A person who has agreed to act in another's best interest or on their behalf in a particular circumstance and under circumstances that form a relationship of confidence and trust is known as a fiduciary.
complete question:
In agency relationships in business, duties of the agent include which of the following (select all that apply).
Group of answer choices
A. Obedience
B. Loyalty
C. Performance
D. Notification
E. Accounting
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Washington County Airport (WCA) faces three potential contingency situations, described below. The end of the fiscal year is December 31, 2021.1. WCA is suing a national airline. WCA's lawyers confirm that it is probable WCA will be awarded damages of $500,000 in the case.2. In June, 2021 a worker was injured in an accident and has sued the company for $200,000. Legal counsel believes it is reasonably possible, but not probable, that the outcome of the suit will be unfavorable, and that the settlement would cost the company from $100,000 to $200,000.3. A suit for $1.5 million was filed by an airline on November 3, 2021. Legal counsel believes an unfavorable outcome is probable. A reasonable estimate of the award payment to the airline is between $500,000 and $1 million. No amount within this range is a better estimate of potential damages than any other amount.Required:Determine the appropriate means of reporting each situation for the year ended December 31, 2021 and record any necessary entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. $5 should be entered as $5,000,000).)
Answer: answers below
Explanation:1.) No entry required. The same can be disclosed in notes to financial statements so as to give information of this case of all the stakeholders. This is due to conservative approach. Contingent Assets are recorded to ledgers only if they are certain. As there is no certainty to win the case, same can not be posted to General Ledger.
2.) of all the stakeholders. The contingent liability should not be accrued because the loss in not probable. The note should indicate the range of the possible loss.
3.) Loss Dr 5
Contingent Liability Cr 5
Note: Disclose the nature of liability, amount of suit, nature of contingency, reason and range of the possible loss. Liability should be recorded as it is probable to incur and amount of loss can be reasonably estimated. In case of range of possible loss, provision should be made of lower amount.
Capilla Company experienced an unfavorable sales volume variance and an unfavorable sales price flexible budget variance. Which of the following is a logical explanation for these variances?
The company was unable to sell its products and was forced to reduce its sales price.
The company reduced its sales price and therefore sold more items that it expected to sell.
The sales volume and the sales price were higher than expected.
None of the answers is correct.The company was unable to sell its products and was forced to reduce its sales price. (An unfavorable sales volume variance indicates that sales volume was lower than expected. An unfavorable sales price flexible budget variance means that company had to sell products for less than expected. The lower than expected sales volume may have forced the company to lower its sales price in an effort to improve the sales volume.)
The company reduced its sales price and therefore sold more items than it expected to sell. The favorable volume variance indicates that sales volume was higher than expected. The unfavorable sales price flexible budget variance means that the company had to sell products for less than it expected. The lower-than-expected sales price may have motivated the higher-than-expected sales volume.
Volume is the degree of the capacity that an item holds. for example, if a cup can hold one hundred ml of water up to the brim, its volume is said to be one hundred ml. extent also can be defined as the quantity of space occupied by a three-dimensional object.
Extent is the quantity of space a three-dimensional object occupies and it is measured in cubic units. two examples of cubic gadgets are cm3 or in3. Mass however is a measure of ways plenty remember is in an item. Mass is regularly measured by using how a good deal something weighs (in units like pounds or kilograms).
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When businesses think about issuing stock, there are many things to think about. The sound of getting large amounts of money into the firm with relatively few strings attached is quite appealing to many companies, but what are the drawbacks of relying on equity financing? In this exercise you will be evaluating the consequences of issuing stock. Stocks are shares of ownership in a company. A stock certificate represents stock ownership. It specifies the name of the company, the number of shares owned, and the type of stock it represents. Today, stock is generally held electronically; that is, the owners don't get a paper certificate unless they specifically want to hold the certificates themselves. Select whether each characteristic is an advantage or disadvantage of issuing stock, from the standpoint of the issuing company.
1. Dividends Advantage Disadvantage
2. Future buy back Advantage Disadvantage
3. Net profit after taxes Advantage Disadvantage
4. One vote per share Advantage Disadvantage
5. Repaid Advantage Disadvantage
6. Shareholders Advantage Disadvantage
Dividends characteristic is an advantage or disadvantage of issuing stock, from the standpoint of the issuing company. The correct option is 1.
The issuing stock is connected to the maximum amount shares a company can issue to its shareholder. It is usually of the total of outstanding treasury stock and shares as well as the company.
The stocks are shares of ownership in a company. A stock certificate represents stock ownership. It specifies the name of the company, the number of shares owned, and the type of stock it represents.
The dividend in stocks is the net profit of the company which is distributed into the shareholders, it is advantage.
It is totally depend on company to distribute to shareholder or not. It is disadvantage. Mainly, the company is used to put the net profit income into the development of the business operations.
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