1) The benefit to low-wage workers (workers whose wage is near the minimum wage) of raising the minimum wage is that they will be paid more, making them less likely to live in poverty and more likely to have a higher standard of living.
2) The employment effect of a minimum wage would be smaller if the labor demand elasticity with respect to wages is elastic (E<-1).
1) The benefit to low-wage workers (workers whose wage is near the minimum wage) of raising the minimum wage is that they will be paid more, making them less likely to live in poverty and more likely to have a higher standard of living. By raising the minimum wage, companies may be forced to pay more to their lowest-paid workers. As a result, the low-wage workers will receive a higher wage, reducing their likelihood of living in poverty and improving their standard of living.
2) The employment effect of a minimum wage would be smaller if the labor demand elasticity with respect to wages is elastic (E<-1). When the labor demand elasticity is elastic, a minimum wage will result in a large decrease in employment, as companies will be more likely to cut jobs when the wage is raised. Therefore, the employment effect of a minimum wage would be smaller if the labor demand elasticity is elastic.
Part b)The equilibrium wage rate (w*) is $6.
The equilibrium number of labor hours employed (h*) is 8.
Part c) Please refer to the attached image.
The new equilibrium number of labor hours employed (h') is 6.
Part d) When the minimum wage is $7, the new equilibrium amount of labor employed (h') is 6.
The new equilibrium wage rate (w') is $7.
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Bush Tea Brands as we know produces two (2) products, Bissy tea and Cerasee tea. The following sales forecast for both products was decided on for the first quarter of the year January - March 2015:
Details
Jan
Feb
Mar
Total
Bissy tea
6,200
5,800
5,600
17,600
Cerasee tea
9,000
7,000
5,000
21,000
Notes:
(a) The company planned to sell both Bissy tea and Cerasee tea for $100 each.
(b) The sales forecast for April is 4,300 units of Bissy tea and 3,000 units of Cerasee tea.
(c) The closing stock level for both products at the end of each month is to be held at a level equal to twenty five percent (25%) of the budgeted sales for the next month.
(d) Management also estimates a monthly deterioration of 7 units of Bissy tea, 12 units of Cerasee tea, 15 units of Material X and 10 units of Material Y. They have suggested that a provision should be made for these items’ deterioration in factory.
(e) To make one unit of Bissy tea three (3) units of raw material X are required, while four (4) units of raw material Y are required to make one unit of Cerasee tea. The cost of raw material X is $10 per unit, while the cost of raw material Y is $25 per unit.
(f) Closing raw material stocks in units in store at the end of each month is to be equivalent to twenty percent (20%) of the forecasted sales for the preceding month. Budgeted sales for the last two (2) months of 2014 were:
Details
Nov 2014
Dec 2014
Bissy tea
1,200
1,800
Cerasee tea
4,000
3,000
Required:
(a) The sales budget for both products. (5 marks)
(b) The production budget for both products. (20 marks)
(c) The direct raw materials usage budget for both products. (5 marks)
The total sales budget for Bissy tea in the first quarter is 17,600 units and the total sales budget for Cerasee tea in the first quarter is 21,000 units.
The sales budget for bissy tea in January is 6,200 units and the sales budget for Cerasee tea in January is 9,000 units. The sales budget for Bissy tea in February is 5,800 units and the sales budget for Cerasee tea in February is 7,000 units. The sales budget for Bissy tea in March is 5,600 units and the sales budget for Cerasee tea in March is 5,000 units. Therefore, the total sales budget for Bissy tea in the first quarter is 17,600 units and the total sales budget for Cerasee tea in the first quarter is 21,000 units.
The production budget is calculated by adding the budgeted sales to the desired ending inventory and subtracting the beginning inventory. To calculate the production budget for Bissy tea, we add the budgeted sales for each month to the desired ending inventory for the next month and subtract the beginning inventory for that month. The same process is done for Cerasee tea.
The direct raw materials usage budget is calculated by multiplying the number of units of each product by the amount of raw material required to make one unit. To calculate the direct raw materials usage budget for Bissy tea, we multiply the number of units of Bissy tea by the amount of raw material X required to make one unit. The same process is done for Cerasee tea, using the amount of raw material Y required to make one unit.
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(a) The sales budget for Bissy tea:
- January: 6,200 units x $100 = $620,000
- February: 5,800 units x $100 = $580,000
- March: 5,600 units x $100 = $560,000
Total Bissy tea sales: $1,760,000
The sales budget for Cerasee tea:
- January: 9,000 units x $100 = $900,000
- February: 7,000 units x $100 = $700,000
- March: 5,000 units x $100 = $500,000
Total Cerasee tea sales: $2,100,000
(b) The production budget for Bissy tea:
- January: 6,200 units + 4,300 units (April forecast) + 7 (deterioration provision) - 17,600 (closing stock for February) = 2,907 units
- February: 5,800 units + 6,200 units (January forecast) + 7 (deterioration provision) - 5,600 (closing stock for March) = 6,407 units
- March: 5,600 units + 5,800 units (February forecast) + 7 (deterioration provision) = 11,407 units
The production budget for Cerasee tea:
- January: 9,000 units + 3,000 units (April forecast) + 12 (deterioration provision) - 21,000 (closing stock for February) = -1089 units (No production needed, as closing stock is sufficient)
- February: 7,000 units + 9,000 units (January forecast) + 12 (deterioration provision) - 5,000 (closing stock for March) = 11,012 units
- March: 5,000 units + 7,000 units (February forecast) + 12 (deterioration provision) = 12,012 units
(c) The direct raw materials usage budget:
- Bissy tea: 2,907 units x 3 units of raw material X = 8,721 units of raw material X
- Cerasee tea: 11,012 units x 4 units of raw material Y = 44,048 units of raw material Y
(a) The sales budget calculates the expected sales revenue for each product based on the forecasted sales volume and selling price. The sales volume for each month is multiplied by the selling price per unit to determine the sales revenue.
(b) The production budget determines the quantity of each product that needs to be produced to meet the forecasted sales demand and maintain desired closing stock levels. It takes into account the forecasted sales, closing stock levels, and provisions for product deterioration.
(c) The direct raw materials usage budget calculates the quantity of raw materials needed to produce the forecasted units of each product. It considers the production quantities, the ratio of raw materials required for each product, and the specified costs per unit of raw materials.
By preparing these budgets, the company can plan and allocate resources effectively, ensuring sufficient production to meet sales demand and managing raw material requirements for production.
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According tot he Federal Reserve Bank, _______ represents the largest percentage of the net worth portfolio of a typical U.S. household.
a. housing
b. corporate and foreign bonds
c. stocks
d.U.S. Treasury securities
According to the Federal Reserve Bank, stocks represent the largest percentage of the net worth portfolio of a typical U.S. household.
This is mainly because investing in stocks has the potential to provide significant returns over time.
However, it's worth noting that owning stocks can be a risky investment. Stock prices can be volatile, meaning that their value can go up or down very quickly depending on market conditions and other factors.
For this reason, it's important for investors to do their research and consider the risks before investing in stocks.
Other options for investing include corporate and foreign bonds, U.S. Treasury securities, and housing.
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A company had inventory on November 1 of 5 units at a cost of $20 each. On November 2 , they purchased 10 units at $22 each. On November 6 they purchased 6 units at $25 each. On November 5,8 units were sold for $55 each. Using the weighted-average perpetual inventory method, what was the value of the inventory on November 30 ? $299.33 $280.00 $404.00 $304.00
Weighted-average perpetual inventory method is a method of valuing inventory by weighing the average cost of the inventory. The weighted-average cost is calculated by dividing the cost of goods available for sale by the number of units available for sale, giving the weighted-average cost per unit.
It is then used to calculate the cost of goods sold and the ending inventory. Let's solve the problem mentioned:A company had inventory on November 1 of 5 units at a cost of 20 each. On November 2, they purchased 10 units at 22 each. On November 6 they purchased 6 units at 25 each. On November 5, 8 units were sold for 55 each.In order to calculate the cost of goods available for sale, we need to find the total cost of each purchase made by the company. The total cost of each purchase made is as follows:
5 units × 20 per unit = 10010 units × 22 per unit = 2206 units × 25 per unit = 150
Then, add these totals together to get the total cost of goods available for sale:
100 + 220 + 150 = 470
Now, we can calculate the weighted-average cost per unit:
Weighted-average cost per unit = Total cost of goods available for sale ÷ Total number of units available for sale Weighted-average cost per unit = 470 ÷ (5 + 10 + 6)
Weighted-average cost per unit = 470 ÷ 21
Weighted-average cost per unit = 22.38
Now, we can calculate the cost of goods sold for the 8 units sold on November 5:
Cost of goods sold = 8 units × 22.38 per unit Cost of goods sold = 179.04 Finally, we can calculate the value of the inventory on November 30, which is the remaining inventory:Value of inventory = (Number of units in inventory × Weighted-average cost per unit)Value of inventory = (3 units × 22.38 per unit)Value of inventory = 67.14 Therefore, the value of the inventory on November 30 using the weighted-average perpetual inventory method is 67.14.
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for private colleges and universities, reclassifications of donor restricted net assets could be made:
Reclassifications of donor restricted net assets can be made by private colleges and universities.
Private colleges and universities often receive donations from individuals, corporations, and other sources. These donations are often made with specific restrictions on how the funds can be used. Donor restricted net assets refer to the funds that have been donated to the institution but are restricted by the donor for specific purposes, such as scholarships, building projects, or research initiatives.
In certain cases, private colleges and universities may need to reclassify donor restricted net assets. Reclassification involves changing the categorization or designation of the funds to align with the institution's current needs or priorities. This process typically requires careful consideration and compliance with accounting and reporting standards.
Reclassifications of donor restricted net assets may be made for various reasons, such as changes in institutional priorities, shifts in funding needs, or adjustments to meet financial obligations. The decision to reclassify donor restricted net assets should be made in consultation with financial advisors, legal experts, and governing boards to ensure transparency and adherence to applicable regulations.
It's important for private colleges and universities to maintain accurate records and provide appropriate disclosures regarding the reclassification of donor restricted net assets. Transparency and clear communication with donors and stakeholders are crucial to maintain trust and accountability in managing donated funds.
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Practical Application Question 32 (4 points) After creating the pivot table (refer to image below), you want to format the values so that it is easier to read. Explain the best way to do this on a piv
After creating a pivot table, it's crucial to format the values for better readability. One of the best ways to format pivot tables is to use the formatting options provided by Excel. You can change the cell's color, font, and size, among other things, to make it more readable and understandable.
Here's how you can format values in a pivot table:
1. Select any cell in the pivot table to activate the PivotTable Tools contextual tab.
2. Click on the "Design" tab, then locate the "PivotTable Styles" section.
3. Choose the formatting style that best suits your pivot table. Excel provides several options, including pre-defined formatting, and you can also create your custom formatting.
4. Click on the "Value Field Settings" option in the "Values" group.
5. Select the "Number Format" button. You'll see a drop-down list of the different formats available. Select the format that best suits your needs.
6. If the available formats don't meet your needs, you can create a custom number format by selecting the "Custom" option from the "Number Format" dialog box.
7. You'll be presented with a list of options for creating your custom format. Make the necessary changes, then click "OK" to save your changes.The steps above are some of the best ways to format pivot tables. By using the options provided by Excel, you can create a customized and easily readable pivot table that accurately represents your data.
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A machine costing $44,375 with a 5-year life and $2,700 residual value was purchased January 2. Compute depreciation for each of the five years, using the double-declining-balance method.
Year 1:
Year 2:
Year 3:
Year 4:
Year 5:
And how do you compute these numbers?
Double-declining balance method is a method of depreciation that offers a fixed percentage rate that the value of an asset depreciates every year. The method doubles the straight-line percentage of depreciation and multiplies it by the book value of the asset. Finally, it will be used to determine the depreciation of the current year.
In the given scenario, a machine costing $44,375 with a 5-year life and $2,700 residual value was purchased January 2. Compute depreciation for each of the five years, using the double-declining-balance method.
The following table summarizes the computation of the depreciation of the machine for each of the five years, using the double-declining-balance method:
Year Book Value Depreciation Rate Depreciation Accumulated Depreciation1 $44,375 40.0%
$17,750 $17,7502 $26,625 40.0%
$10,650 $28,4003 $15,975 40.0%
$6,390 $34,7904 $9,585 40.0%
$3,834 $38,6245 $5,751 40.0%
$2,300 $40,924
The depreciation for each of the five years is as follows:
Year
1: $17,750Year
2: $10,650Year
3: $6,390Year
4: $3,834Year
5: $2,300
The formula used to compute depreciation is given by:
Depreciation = (Book Value - Residual Value) × Depreciation Rate
where,Book Value = Cost of the asset - Accumulated depreciation
Depreciation Rate = 2 / Useful life in years
Accumulated Depreciation = Depreciation of current year + Accumulated depreciation of previous year.
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The following companies have their financial year ended on 31
December 2021.
1. Entity 1 has 1,000,000 ordinary shares at £1 each as on 1 January
2021. On 1 April 2021, the company issued 250,0
The following is the step-by-step explanation for calculating earnings per share (EPS):
Step 1: Find out the weighted average number of ordinary shares issued during the financial year.
You can calculate the weighted average number of shares issued using the following formula:
Weighted average number of ordinary shares = [(Number of shares x time shares are held) + (Number of new shares x time shares are held)] / Total time shares are held
The total time shares are held can be determined by adding the time each number of shares was held.
For example: (3 months x 1,000,000 shares) + (9 months x 1,250,000 shares)
= 3,000,000 + 11,250,000
= 14,250,000.
Step 2: Determine the profit after tax attributable to ordinary shareholders. For Entity 1, the profit after tax is £850,000.
Step 3: Divide the profit after tax attributable to ordinary shareholders by the weighted average number of ordinary shares.
EPS = Profit after tax attributable to ordinary shareholders / Weighted average number of ordinary shares
EPS for Entity 1 = £850,000 / 14,250,000
= £0.0596 per share (rounded to four decimal places).
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If the cost of goods sold is $100,000, sales are $200,000, merchandise purchases are $33,000, and ending merchandise inventory is $10,000, then the beginning merchandise inventory must be: Multiple Choice $120,000 $57.000 $77,000 $177.000
Given that cost of goods sold is [tex]$100,000[/tex], sales are 200,000, merchandise purchases are 33,000, and ending merchandise inventory is 10,000. We need to find the beginning merchandise inventory.
We will use the formula of the cost of goods sold. Using the formula, we have: C.O.G.S = Beginning inventory + Purchases - Ending inventory We have been given the following details: Cost of goods sold = [tex]$100,000[/tex]Merchandise purchases = 33,000Ending merchandise inventory = [tex]$10,000[/tex]So, substituting the values in the formula,
We have:00,000 = Beginning inventory + 33,000 - 10,000100,000 = Beginning inventory + 23,00000,000 - 23,000 = Beginning inventory77,000 = Beginning inventory Therefore, the beginning merchandise inventory must be 77,000.
Answer:
=77.000.
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you have worked on your balance sheet to figure out how to finance an expansion plan. Which of the following would be the most realistic plug figure to use? Select an answer: loans payable paid-in capital liabilities Investments Troulioun
While preparing the balance sheet for the expansion of a business, a plug figure is used. The main aim of a plug figure is to balance the balance sheet. It refers to the line item in the balance sheet that is used to ensure that the balance.
most realistic plug figure to use while financing an expansion plan would be "Loans Payable". Loans payable is a line item in the liability section of the balance sheet. It represents the money owed by the company to others in exchange for funds borrowed.
The amount is usually shown in the balance sheet under the current liabilities or long-term liabilities category. The reason for using loans payable as the plug figure is that it is a liability that represents borrowed funds that will be repaid over time.
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a sale of goods was denominated in a currency other than the entity's functional currency. the sale resulted in a receivable that was fixed in terms of the amount of foreign currency that would be received. exchange rates between the functional currency and the currency in which the transaction was denominated changed so that a loss was incurred. the loss should be included as a:
The resulting gain from a sale of goods, denominated in a currency other than the entity's functional currency, should be included as a:
C. Transaction gain reported as a component of comprehensive income
When a sale of goods is denominated in a currency other than the entity's functional currency, any changes in the exchange rates between the functional currency and the transaction currency can lead to a gain or loss. In this case, since the receivable resulting from the sale was fixed in terms of the foreign currency amount, any gain that arises from the change in exchange rates is considered a transaction gain.
A transaction gain or loss is related to specific transactions and is not associated with the overall translation of financial statements. It reflects the impact of fluctuations in exchange rates on specific transactions and is typically reported as a component of comprehensive income.
Comprehensive income includes all changes in equity during a period, except for those resulting from investments by owners and distributions to owners. Transaction gains or losses, including gains arising from changes in exchange rates, are considered part of comprehensive income. Therefore, the resulting gain from the sale of goods should be included as a transaction gain reported as a component of comprehensive income.
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The complete question is:
A sale of goods, denominated in a currency other than the entity's functional currency, resulted in a receivable that was fixed in terms of the amount of foreign currency that would be received. Exchange rates between the functional currency and the currency in which the transaction was denominated changed. The resulting gain should be included as a:
A. Translation gain reported as a component of comprehensive income.
B. Translation gain reported as a component of income from continuing operations.
C. Transaction gain reported as a component of comprehensive income.
D. Transaction gain reported as a component of income from continuing operations.
Kimberlee invested $1.5 million in a hedge fund that has a 2/20 fee structure. The fund had a total of $26 million of assets under management and it returned 19% and 27% in the first and second years, respectively. Assume that management fees are paid at the beginning of each year and performance fees are paid at the end of each year in which they are applicable. How much will Kimberlee pay in performance fees for the first two years, respectively?
a. $30,000; $33,989
b. $30,000; $49,860
c. $33,989; $83,137
d. $33,989; $415,683
e. $49,860; $83,137
Kimberlee will pay performance fees based on the hedge fund's fee structure of 2/20. This means the fund charges a 2% management fee and a 20% performance fee.
To calculate the management fee, we multiply Kimberlee's investment by the management fee rate:
Management fee = $1.5 million * 2% = $30,000
For the first year, the fund had a 19% return.
To calculate the performance fee, we need to find the increase in value of Kimberlee's investment:
Increase in value = $1.5 million * 19% = $285,000
Performance fee = Increase in value * Performance fee rate = $285,000 * 20% = $57,000
For the second year, the fund had a 27% return. Using the same calculation, we find:
Increase in value = $1.5 million * 27% = $405,000
Performance fee = Increase in value * Performance fee rate = $405,000 * 20% = $81,000
Therefore, Kimberlee will pay $57,000 in performance fees for the first year and $81,000 for the second year.
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Suppose a retiree is entitled to his annual pension of $30,000 for 25 years from retirement date. If the clause of the payments states that the pension is going to be decreasing by 1% a year throughout the period, and interest rate is 13%, what is the present value of this retiree's total periodic pension benefit payment?
The present value of the total periodic pension benefit payment of the retiree is $402,258.36.
The retiree is entitled to his annual pension of $30,000 for 25 years from the date of his retirement. The clause of the payments states that the pension is going to be decreasing by 1% a year throughout the period.
Using the formula for the Present Value of an Ordinary Annuity, we have:
PV = A x [1 - (1 + r)-n] / r
where
PV = Present Value of the Annuity
A = Annual Payment
r = Discount Rate or Interest Rate
n = Number of years of the Annuity
For the retiree's periodic pension benefit payment:
A = $30,000r = 13% / 100n = 25 years
Decreasing Rate = 1% per annum
Present Value of the Total Periodic Pension Benefit Payment=
PV= $30,000(1-1.01⁻²⁵)/ (0.13 - 0.01)= $402,258.36
Therefore, the present value of the total periodic pension benefit payment of the retiree is $402,258.36.
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12. "Positive Analysis" concerns all the following attributes EXCEPT one. Circle the incorrect answer:
a. It is objective.
b. It measures "what should be."
c. It includes no value judgement.
d. Its goal is to assess "what is."
The incorrect answer is "b. It measures 'what should be.'"Positive Analysis" concerns all the following attributes EXCEPT "b. It measures 'what should be.'"
Positive analysis refers to the study of economic behavior without any ethical judgments and evaluating them based on facts. Its goal is to evaluate what is, without any influence of what ought to be.
In this context, options a, c, and d are correct as "Positive Analysis" involves assessing what is, without any value judgments, and with an objective approach. However, option b is incorrect as it doesn't measure "what should be." It evaluates the current situation without influencing it in any way.
It must be noted that normative analysis, on the other hand, measures "what should be." It is concerned with evaluating what should happen, based on subjective ethical judgments and values.
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The Forked Oak Case The Forked Oak realizes how important its servers are to meeting its goals for revenue and customer satisfaction. Create a no more than one-page single-spaced report proposing an incentive system for these employees. Be sure to recognize the potential unintended consequences of your recommendations. For example, rewarding servers for the total amount of their checks might motivate them to push more expensive food and drink items to customers, which they might not appreciate. This might increase sales at the expense of customer service. Both goals are important, but they might conflict at times. How will you balance the need for servers to pursue and achieve both of them?
To propose an incentive system for the employees at The Forked Oak, it's important to balance the goals of increasing revenue and maintaining customer satisfaction. Here's a step-by-step approach to creating an incentive system that considers potential unintended consequences and ensures the pursuit of both goals:
1. Measure employee performance: Start by identifying key performance indicators (KPIs) that align with the goals of revenue and customer satisfaction. These could include metrics like average check amount, customer feedback scores, table turnover rate, or upselling percentage.
2. Reward balanced performance: Instead of focusing solely on individual KPIs, design the incentive system to reward a combination of revenue generation and customer satisfaction. This can be achieved by assigning weights to each KPI and calculating an overall performance score.
3. Team-based incentives: Consider implementing a team-based incentive system to encourage collaboration among servers. This can help prevent competition and foster a cooperative environment that benefits both revenue and customer satisfaction.
4. Training and development: Offer training programs to improve servers' skills in providing excellent customer service and upselling techniques. By investing in their development, you can enhance their ability to achieve both revenue and customer satisfaction goals.
5. Recognition and rewards: In addition to monetary incentives, acknowledge and reward outstanding performance publicly. This can boost motivation and morale among the employees.
6. Monitor unintended consequences: Regularly evaluate the impact of the incentive system to identify any unintended consequences that may arise. For example, if servers are too focused on upselling, it may lead to a decline in customer satisfaction. Adjust the system accordingly to maintain a balance between revenue and customer service.
7. Continuous improvement: Encourage feedback from both customers and employees to identify areas for improvement. This feedback can help refine the incentive system and ensure it remains effective and aligned with the goals of The Forked Oak.
In summary, the proposed incentive system should measure employee performance using relevant KPIs, reward balanced performance, promote teamwork, invest in training and development, provide recognition and rewards, monitor unintended consequences, and continuously improve the system based on feedback. This comprehensive approach will help The Forked Oak achieve its goals of revenue generation and customer satisfaction while considering potential trade-offs and maintaining a balanced approach.
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An IT company has lowered its prices due to the fact that it has directly benefited from globalization, making it much easier for customers to buy their products. Which of the following is NOT a likely cause of their decreasing prices?
A) The fact that the company can easily share technology across national borders.
B) The fact that globalization allows developing countries access to international investment funds.
C) The fact that globalization creates job security which makes the workers more productive.
D) The fact that globalization causes increased international productivity Group of answer choices C
An IT company has lowered its prices due to the fact that it has directly benefited from globalization, making it much easier for customers to buy their products. The following is NOT a likely cause of their decreasing prices: the fact that globalization creates job security which makes the workers more productive (Option C).
The given options about the fact of globalization and its benefits on the IT company is incorrect and one of the options provided here is NOT likely to cause the decreasing of the prices of the IT company.
The correct answer is option C, the fact that globalization creates job security which makes the workers more productive. This is because job security is not linked to the decreasing of prices but it is associated with employee retention, thereby improving workforce productivity.
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Which of the following generally is considered a limitation of the balance sheet?
a. The balance sheet reflects the current value of a business
b. The balance sheet reflects the instability of the dollar.
c. Balance sheet formats and classifications do not vary to reflect industry differences.
d. Due to measurement problems, some enterprise resources and obligations are not reported on the balance sheet.
2. The operating cycle
a. measures the time elapsed between cash disbursement for inventory and cash collection of the sales price.
b. refers to the seasonal variations experienced by business enterprises.
c. should be used to classify assets and liabilities as current if it is less than one year.
d. cannot exceed one year.
3. Which of the following would not be classified as a current liability on a classified balance sheet?
a. Unearned revenue.
b. Deferred income tax liability.
c. The currently maturing portion of long-term debt.
d. Accrued salaries payable to management.
4. Balance sheet analysis is useful in assessing a firm's liquidity, which is the ability to
a. satisfy short-term obligations.
b. main profitable operations
c. maintain past levels of preferred and common dividends.
d. survive a major economic downturn.
5. Accrued revenues would normally appear on the balance sheet as
a. plant assets.
b. current liabilities.
c. long-term liabilities.
d. current assets.
5. Lobo Co. was incorporated on July 1, 2021, with P200,000 from the issuance of stock and borrowed funds of P30,000. During the first year of operations, net income was P10,000. On December 15, Lobo paid an P800 cash dividend. No additional activities affected owners' equity in 2021. At December 31, 2021, Lobo's liabilities had increased to P37,600. In Lobo's December 31, 2021, balance sheet, total assets should be reported at
a. P239,200
b. P240,000.
c. P246,800.
d. P276,800
6.
Blues Corporation's trial balance included the following account balances at December 31, 2021: What amount should be included in the current liability section of Blues' December 31, 2021, balance sheet?
a. P135,000
b. P153,000
c. P195,000
d. P234,000
1. The limitation of the balance sheet is that due to measurement problems, some enterprise resources and obligations may not be reported. 2. The operating cycle measures the time elapsed between cash disbursement for inventory and cash collection of the sales price. 3. The currently maturing portion of long-term debt would not be classified as a current liability on a classified balance sheet. 4. Balance sheet analysis is useful in assessing a firm's liquidity, which refers to its ability to satisfy short-term obligations. 5. Accrued revenues would normally appear on the balance sheet as current assets. 6. Total assets on Lobo Co.'s December 31, 2021, balance sheet should be reported at P246,800. 7. The current liability section of Blues Corporation's December 31, 2021, balance sheet should include an amount of P234,000.
1. The balance sheet does not reflect the current value of a business and may not include all enterprise resources and obligations due to measurement problems.
2. The operating cycle refers to the time it takes for a business to convert cash into inventory, sell the inventory, and collect cash from customers.
3. The currently maturing portion of long-term debt is typically classified as a long-term liability since it is not due within one year.
4. Liquidity refers to a firm's ability to meet its short-term obligations, such as paying debts and expenses as they come due.
5. Accrued revenues represent revenues that have been earned but not yet received in cash, and they are typically classified as current assets.
6. Total assets on Lobo Co.'s balance sheet would be the sum of the initial investment, net income, and the increase in liabilities.
7. The current liability section of Blues Corporation's balance sheet should include the accounts payable and accrued expenses, totaling P234,000.
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Lassen Corporation sold a machine to a machine dealer for $21,000. Lassen bought the machine for $79,750 and has claimed $35,000 of depreciation expense on the mąchine. What gain or loss does Lassen realize on the transaction?
Lassen Corporation realizes a loss of $23,750 when selling the machine to the machine dealer for $21,000.
Lassen Corporation sold a machine to a machine dealer for $21,000. To determine the gain or loss realized on the transaction, we need to calculate the machine's book value and compare it to the sale price.
The machine's book value is the original cost minus accumulated depreciation. In this case, Lassen bought the machine for $79,750 and has claimed $35,000 in depreciation expense, so the book value is $79,750 - $35,000 = $44,750.
Now, we can calculate the gain or loss by subtracting the book value from the sale price: $21,000 - $44,750 = -$23,750.
Since the result is negative, we can conclude that Lassen realizes a loss of $23,750 on the transaction.
In summary, Lassen Corporation realizes a loss of $23,750 when selling the machine to the machine dealer for $21,000.
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Value of vehicle
Rs 40,000
Road licence (annual)
Rs 2,000
Driver's wages (per month)
Rs 3,000
Insurance (annual)
Rs 3,000
Garage rent (annual)
Rs 4,000
Direct wages (per month)
Rs 3,000
Cost of petrol per litre
Rs 25
Mileage per litre
30
Estimated life in miles
1,00,000
Annual mileage runs
10,000
Calculate cost per mile.
Pls ASAP
To calculate the cost per mile, we need to consider the total costs associated with running the vehicle for a year and divide it by the estimated annual mileage.
Total annual costs:
Road license: Rs 2,000
Driver's wages: Rs 3,000 x 12 = Rs 36,000
Insurance: Rs 3,000
Garage rent: Rs 4,000
Total annual costs = Rs 2,000 + Rs 36,000 + Rs 3,000 + Rs 4,000 = Rs 45,000
Cost per mile = Total annual costs / Annual mileage runs
Cost per mile = Rs 45,000 / 10,000 miles
Cost per mile = Rs 4.50
Therefore, the cost per mile for running the vehicle is Rs 4.50.
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6. Select only the statement that are true: (2) A. None of the other statements/options is correct. B. The minimum acceptable rate of return (MARR) for a project is usually less than the company's cos
The true statement among the given options is: The minimum acceptable rate of return (MARR) for a project is usually less than the company's cost of capital. The correct option is B.
The Minimum Acceptable Rate of Return (MARR) is the minimum rate of return a company expects to receive from an investment. MARR is the least amount of revenue that a company needs to make in order to invest in a project. It is the cost of capital required to fund a project or investment, and it is frequently used as a hurdle rate or benchmark. The MARR of a company is determined by the company's risk profile, opportunity costs, inflation, and other factors that influence investment decisions.
MARR is a metric used to evaluate the feasibility of a project and whether or not it meets a company's investment criteria.Usually, the MARR is less than the company's cost of capital because a project that meets the MARR is usually considered to be financially feasible. Projects that generate returns less than the MARR are usually abandoned since they do not meet the company's investment criteria.
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Consider a system of four annuity variables.
(a) An annuity pays $53.00 each period for 4 periods. For these cash flows, the appropriate discount rate / period is 7.0%. What is the present value of this annuity?
(b) An annuity pays each period for 10 periods, the appropriate discount rate / period is 7.0%, and the present value is $142.38. What is the payment each period?
(c) An annuity pays $173.00 each period for 13 periods, and the present value is $513.94. What is the discount rate / period of this annuity?
(d) An annuity pays $40.00 each period, the appropriate discount rate / period is 6.0%, and the present value is $168.49. What is the number of periods?
An annuity pays $53.00 each period for 4 periods. For these cash flows, the appropriate discount rate / period is 7.0%. What is the present value of this annuity?
The formula to calculate the present value of an annuity is as follows: PV = (Payment)[(1-(1+r)^-n)/r]where r is the interest rate and n is the number of periods .To find the present value of the annuity, we need to substitute the given values into the formula.
PV = $53[(1-(1+0.07)^-4)/0.07]PV = $175.39
the present value of this annuity is $175.39.b.
An annuity pays each period for 10 periods, the appropriate discount rate / period is 7.0%, and the present value is $142.38. What is the payment each period?To calculate the payment each period, we need to rearrange the formula for the present value of an annuity to solve for the payment.
(Payment) = PV / [(1-(1+r)^-n)/r](Payment) = $142.38 /
[(1-(1+0.07)^-10)/0.07](Payment) = $142.38 / 5.895(Payment) = $24.15
An annuity pays $173.00 each period for 13 periods, and the present value is $513.94. What is the discount rate / period of this annuity?
The discount rate / period of this annuity is 8%.d. An annuity pays $40.00 each period, the appropriate discount rate / period is 6.0%, and the present value is $168.49. What is the number of periods?
We need to rearrange the formula for the present value of an annuity to solve for the number of periods.
n = ln[(PV)/(Payment)] / ln(1+r)n = ln[(168.49)/(40)] /
ln(1+0.06)n = 6.06
The number of periods for this annuity is 6.06, or approximately 6 periods
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b. Establish the appropriate relationship between each table and then print the relationships report.
c. Create and print a query that lists SKU, Type, Winery, Buyer, and Buyer Phone for all products. (Save as Wine Products Query 1.)
d. Create and print a form for entering new products; use whatever style you’d like. (Save the form as Wine Products Form 1, and print the first record only.)
e. Create and print a report with the fields Type, Name (Name of Winery), Vintage, and Price for all products. The report should be sorted by Type in ascending order and be formatted in a Tabular lay- out with Portrait orientation. (Save the report as Wine Products Report 1.) All field information should be visible.
f. Make sure you keep a copy of this file for use in the next chapter
b. After establishing the appropriate relationship between each table, print the relationships report. In MS Access, this report indicates the links between tables in a database. This report can help you to understand the ways in which different tables are linked to each other in a database.
C. Creating and printing a query that lists SKU, Type, Winery, Buyer, and Buyer Phone for all products will help to list all products and provide the required information. Here is the explanation to complete this step: Click on the Create tab and choose Query Design.
Then select all the tables and click Add. Finally, select Close. Place your cursor on the line between the fields that link tables. When you see the join symbol, double-click the line to edit the join type, if necessary.
Next, select the fields from each table that you want to include in the query. You can do this by dragging them from the table onto the design grid. It is possible to rename the field by changing the text that appears in the Field box. Then, you can run the query by clicking the Run button. Save this query as Wine Products Query 1.d. You can use whatever style you’d like to create and print a form for entering new products. The following steps explain how to create and print a form for entering new products: Open the table you wish to create the form for, then select Create Form.
Select Form Wizard, then select the fields you want to include, then select Next.
Choose the layout for your form and select Next. Finally, give your form a name, and choose Finish.
Print the first record of the form using your preferred style. Save the form as Wine Products Form 1.e. After creating and printing a form, create and print a report with the fields Type, Name (Name of Winery), Vintage, and Price for all products. This report should be sorted by Type in ascending order and be formatted in a Tabular layout with Portrait orientation. In addition, all field information should be visible. To do this, follow these steps: Click on the Create tab and choose Report Design.
Then select all the tables and click Add. Finally, select Close. Select the fields from each table that you want to include in the query. You can do this by dragging them from the table onto the design grid. It is possible to rename the field by changing the text that appears in the Field box. Select Type, Winery, Vintage, and Price to be included in the report. Save this report as Wine Products Report 1.
f. Ensure that you save a copy of this file for use in the next chapter.
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in consequence of the reconstruction governments across the south the region becamea vibrant
In consequence of the Reconstruction governments across the South, the region became a vibrant place that paved the way for African Americans to enjoy the civil rights they deserved. In 1865, the South was in chaos due to the Civil War, which had just ended.
The rebuilding process that followed, known as Reconstruction, intended to rebuild the South and provide freedom and civil rights to African Americans who had previously been enslaved.
The Reconstruction governments had a significant impact on the South, creating several positive changes. African Americans who had previously been slaves gained rights such as the right to vote and the right to own property. Reconstruction also established schools, hospitals, and roads throughout the South.
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h has a commercial policy covering his warehouse. during the application, h told the insurer that he guaranteed that smoke detectors where installed and functional in the building even though the warehouse does not have smoke detectors. if a fire were to occur and the insurer proves that there were no functional smoke detectors, they do not have to pay the claim. h's untrue statement of functional smoke alarms would be considered to be: a: warranty b: misrepresentation c: material misrepresentation d: concealment
H's untrue statement of functional smoke alarms would be considered as c) Material misrepresentation .A material misrepresentation refers to a false statement or omission of a significant fact that, if known by the insurer, would have influenced their decision to issue the policy or the terms and conditions of the policy.
In this case, H stated that smoke detectors were installed and functional in the warehouse, even though they were not present. This misrepresentation is considered material because it directly relates to the risk of fire and the insurer's assessment of the coverage they would provide.
By making this material misrepresentation, H has provided false information that is relevant to the insurer's decision-making process. If a fire were to occur and the insurer discovers that there were no functional smoke detectors as claimed, they would have grounds to deny the claim based on the material misrepresentation made by H during the application process.
Option a) Warranty refers to a specific guarantee or promise made by the insured regarding a particular condition or circumstance. It is different from the situation described in the question.
Option b) Misrepresentation refers to a false statement or omission of fact, which is applicable in this case. However, the term "material" is missing, which indicates the significance of the false statement in influencing the insurer's decision.
Option d) Concealment refers to the intentional withholding of material facts or information by the insured. In this scenario, H provided false information rather than intentionally withholding relevant information.
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during the great recession from 2007 to 2009, most countries increased government expenditures to boost aggregate demand. (true or false)true false question.
During the Great Recession, from 2007 to 2009, most countries increased government expenditures to boost aggregate demand. The statement is true. The Great Recession, which began in 2007, was a severe economic downturn that lasted until 2009.
The recession began in the United States and quickly spread across the globe to become a global recession. Governments of most countries, including the United States, responded by adopting expansionary fiscal policies. Government expenditure was one of the policy instruments that was used by most countries to boost aggregate demand during the recession. The goal of these policies was to stimulate the economy by boosting spending, creating jobs, and increasing demand for goods and services. In conclusion, the statement is true. During the Great Recession, most countries increased government expenditures to boost aggregate demand.
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do you add repairs to depreciation or cost accounting straight line method
In cost accounting and depreciation calculations, repairs and maintenance expenses are generally treated separately from the depreciation expense and the straight-line method.
The straight-line method is a common approach used in cost accounting to allocate the cost of an asset evenly over its useful life. It divides the initial cost of the asset (less its estimated salvage value) by the number of periods in its useful life to determine the annual depreciation expense.
Repairs and maintenance expenses, on the other hand, are typically treated as separate operating expenses. These expenses represent the costs incurred to keep an asset in good working condition or to restore it to its original condition when it has been damaged or worn out. They are expensed in the period they occur rather than being capitalized as part of the asset's cost.
By treating repairs and maintenance expenses separately from depreciation, the straight-line method focuses solely on the allocation of the asset's original cost over time, while repairs and maintenance expenses are recognized as ongoing operating expenses associated with keeping the asset in proper working order.
It's worth noting that there may be alternative methods of depreciation and accounting treatments that could vary depending on specific accounting standards, regulations, or industry practices. It's always recommended to consult relevant accounting guidelines or consult with a professional accountant for specific guidance regarding your situation.
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Use the information in the case to estimate the elasticity of
demand for Netflix subscription services
The elasticity of demand refers to how a change in price affects the quantity demanded. The elasticity of demand for Net-flix subscription services can be estimated using the following formula:
Elasticity of Demand = % Change in Quantity Demanded / % Change in Price
The case does not provide specific information on the quantity demanded or the price of Ne-tflix subscription services, so we will have to make some assumptions to estimate the elasticity of demand. Let's assume that the price of a N-etflix subscription service is $10 per month and that the quantity demanded is 100,000 subscriptions.
If the price of a N-etflix subscription service increases by 10% to $11 per month, we might expect the quantity demanded to decrease. Let's assume that the new quantity demanded is 90,000 subscriptions.
Using the formula for elasticity of demand, we can calculate the elasticity as follows:
Elasticity of Demand = (% Change in Quantity Demanded / % Change in Price)
% Change in Quantity Demanded = ((New Quantity Demanded - Old Quantity Demanded) / Old Quantity Demanded) x 100%
% Change in Quantity Demanded = ((90,000 - 100,000) / 100,000) x 100%
% Change in Quantity Demanded = -10%
% Change in Price = ((New Price - Old Price) / Old Price) x 100%
% Change in Price = (($11 - $10) / $10) x 100%
% Change in Price = 10%
Elasticity of Demand = (-10% / 10%)
Elasticity of Demand = -1
Based on this calculation, we can estimate that the elasticity of demand for Ne-tflix subscription services is -1. This means that a 1% increase in price will lead to a 1% decrease in quantity demanded. Since the elasticity is greater than -1, we can say that the demand for N-etflix subscription services is elastic.
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In a dosed economy, saving and uwestment itust be equal, but this is not the case in an open economy. In the following probilom, you will explore how saving and imvestment are connected to the international flow of capital and goods in an econom. Before delving into the relationship between these various coenponents of an economy, you wili be asked to recall some relationships between aggregate variables that will be useful in your analysis. Recall the components that maket ap GWP. National income (Y ) equals total expenditure on the econom's joutpoit of goods and services. Thus, where C= consumquion, I = investment, G= povernment purchases, X = exports, Mf=∣ imports, and NX= net exports: Aso, natooral saving is the income of the nation that is left after paying for Therefore, fiational saving (S) is defined as: Rearranging the previous equabon and solvine for Y yields Y= Mugging this into the orginal equation showing the vanous components of GDp results in the following relatonship: S= Hearranging the previous equatinen and solving for Y vields Y = Plugging thes into the criginal equation showing the various comporients of GEP fesults in the jollowing relationship: This is equivalent to S since net expists must equal net canital outfion (NCO, also known as net foreige investiment). Now suppose that a country is experiencing a trade surplus. Determine the relationshigs between the entries-in the following table, and enter these relabonshys using the following symbots: → (areater than ) +
<(less than), or −(equal to ).
In a dosed economy, saving and investment must be equal, but this is not the case in an open economy.
What does it mean?In the following problem, you will explore how saving and investment are connected to the international flow of capital and goods in an economy.
In a trade surplus country, the relationship between the entries in the table can be determined as follows:
Table is as follows:
[tex]$$\begin{matrix} & C & I & G & X & M & NCO & S \\ A & & & + & & - & & \\ B & & + & & - & & & \\ C & & & - & & + & & \\ D & & & & - & + & & + \\ \end{matrix}$$[/tex]
Where,
C = consumption
I = investment
G = government purchases
X = exports
M = imports
NCO = net capital outflow
S = saving
The relationship between the entries in the table is given below:
Row A: As a country is experiencing a trade surplus, exports will be greater than imports. So, in this case, NCO will be greater than zero.
Row B: In this case, investment will be greater than saving, so I will be greater than S.
Row C: In this case, government purchases will be greater than tax revenue, so G will be greater than T. As a result, the budget deficit will occur.
Row D: In this case, net capital outflow will be equal to zero because net exports must be equal to net capital outflow.
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a stable supply process is one where the manufacturing process and the underlying technology are mature and the supply base is well established. T/F
A stable supply process is one where the manufacturing process and the underlying technology are mature and the supply base is well established. This statement is True.
A stable supply process is characterized by a mature manufacturing process and underlying technology, as well as a well-established supply base. In this context, "mature" refers to a manufacturing process and technology that have been refined over time, with established best practices and a high level of reliability. The supply base refers to the network of suppliers and vendors that provide the necessary raw materials, components, and services for the manufacturing process.
A stable supply process is advantageous because it provides predictability and consistency in the production of goods or services. The mature manufacturing process and technology have been thoroughly tested and optimized, resulting in a lower risk of unexpected disruptions or quality issues. The well-established supply base ensures a reliable and consistent flow of inputs, reducing the likelihood of supply chain disruptions.
Overall, a stable supply process contributes to operational efficiency, cost-effectiveness, and the ability to meet customer demand consistently. It is desirable for companies aiming to maintain a reliable and consistent manufacturing process.
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In chapter 1 and 2 of the book Group Dynamics 6th Edition (Author: Forsyth, D.R.)
Week #1 Discussion Forum:
Identify the impact of groups in the business environment
What is the most important group(s) to our society? Explain your answer with details, examples and apa citations and references.
In the business environment, various groups play significant roles and have distinct impacts. These groups include customers, employees, shareholders, suppliers, competitors, and the government.
Each group contributes to shaping the business landscape and has its own set of interests, needs, and influence. Among these groups, one could argue that customers are the most important to society. Customers drive the demand for products and services, shaping market trends and influencing business decisions.
Without customers, businesses would not exist as they rely on consumer spending to generate revenue and sustain their operations. Moreover, meeting customer needs and preferences is crucial for business success and growth.
For instance, a study by Reichheld and Sasser (1990) found that increasing customer retention rates by 5% can lead to a 25% to 95% increase in profits for businesses. This highlights the direct impact of customer satisfaction and loyalty on a company's financial performance.
Additionally, customers have the power to influence business practices through their purchasing decisions. Increasingly, consumers are demanding socially responsible and sustainable products and services. Companies that align with these values can attract and retain customers, while those that fail to do so may face reputational risks and declining sales.
Furthermore, customers indirectly influence other groups in the business environment. For instance, their preferences and demands drive innovation, influencing product development and marketing strategies. They also impact employee job satisfaction and engagement, as customer satisfaction is often linked to employee performance and rewards.
In conclusion, while all groups in the business environment are important, customers hold significant influence and are crucial to society. Their demands, behaviors, and preferences shape business strategies, impact financial performance, and drive societal and environmental considerations.
Reference:
Reichheld, F. F., & Sasser Jr, W. E. (1990). Zero defections: Quality comes to services. Harvard Business Review, 68(5), 105-111.
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Allard, Inc., presented two years of data for its Frozen Foods
Division and its Canned Foods Division.
Frozen Foods Division:
Year 1
Year 2
Sales
$32,550,000
$35,250,000
Operating income
1,399
Allard, Inc.'s Frozen Foods Division's sales increased from $32,550,000 to $35,250,000 over two years, with an operating income of $1,399 in year 2.
Allard, Inc. presented two years of data for its Frozen Foods and Canned Foods Divisions. The sales of the Frozen Foods Division increased from $32,550,000 in year 1 to $35,250,000 in year 2. The operating income was $1,399 in year 2. However, no information is given about the operating income of the division in year 1. Operating income is the amount of profit earned after deducting operating expenses from gross profit.
Operating income gives a better idea of how profitable a company is, taking into account the expenses involved in running the business. The increase in sales over two years shows that the Frozen Foods Division is doing well and is increasing in popularity among customers. The information provided shows a positive trend for the division, but without the information of year 1's operating income it's difficult to draw a complete conclusion.
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