A contract under which one or both parties have not yet fully performed is termed an "executory contract."
This means that the terms of the contract have not yet been fully carried out or completed by all parties involved. In an executory contract, there are still obligations and responsibilities that need to be fulfilled before the contract can be considered fully executed.
For example, if a person hires a contractor to build a house, but the contractor has not yet completed the construction, the contract between the two parties is considered an executory contract.
Similarly, if a person agrees to pay for a product but has not yet received it, the contract is still considered executory until the product is delivered and the payment is made.
In conclusion, an executory contract is one that is not yet fully performed, and there are still obligations and responsibilities that need to be met by one or both parties involved.
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what is the estimated mean consumption level for an economy with gdp equal to $2 billion and an aggregate price index of 90? round to the nearest hundredth.
The estimated mean consumption level for this economy is $22,222,222.22.
To calculate the estimated mean consumption level for an economy with a GDP of $2 billion and an aggregate price index of 90, follow these steps:
1. First, note the given information: GDP = $2,000,000,000 and Price Index = 90.
2. The formula for finding the mean consumption level is Mean Consumption Level = (GDP / Price Index) * 100.
3. Substitute the given values into the formula: Mean Consumption Level = ($2,000,000,000 / 90) * 100.
4. Calculate the result: Mean Consumption Level = $22,222,222.22 (rounded to the nearest hundredth).
Therefore, the estimated mean consumption level for this economy is $22,222,222.22 (rounded to the nearest hundredth).
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This type of process-analysis tool is a schematic of the movement of material, product, or people.
- value stream mapping
- process mapping
- process charts
The process mapping and process charts are two types of process-analysis tools that are commonly used in organizations to improve their operations. Process mapping involves creating a visual representation of the steps involved in a particular process, including the flow of materials, products, or people.
It is a powerful tool for identifying inefficiencies and bottlenecks in a process, and for finding opportunities for improvement. Process charts, on the other hand, are more specific than process maps.
They provide a detailed breakdown of each step in a process, along with the time required to complete each step, and the resources needed. Process charts are useful for tracking the progress of a particular process over time, and for identifying areas where improvements can be made.
Overall, both process mapping and process charts are important tools for organizations looking to streamline their operations and improve their overall efficiency.
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suppose a company pays total dividends of $500,000 out of net income of $2 million. what would the payout ratio be?
If a company pays total dividends of $500,000 out of net income of $2 million, The payout ratio would be 25%.
The payout ratio is a financial metric that indicates the proportion of a company's earnings that is paid out to shareholders in the form of dividends. It is calculated by dividing the total dividends paid by the net income and expressing it as a percentage.
In this scenario, the company paid a total of $500,000 in dividends, and its net income was $2 million.
To calculate the payout ratio, we use the following formula:
Payout Ratio = (Total Dividends / Net Income) * 100
Substituting the values into the formula, we get:
Payout Ratio = ($500,000 / $2,000,000) * 100
Simplifying the calculation:
Payout Ratio = 0.25 * 100
Payout Ratio = 25%
The payout ratio for the given scenario is 25%. This means that for every dollar of net income, the company distributed 25 cents to its shareholders as dividends. The payout ratio is an important metric for investors and analysts as it provides insight into a company's dividend distribution practices and its ability to generate consistent profits. In this case, a payout ratio of 25% suggests that the company has allocated a moderate portion of its earnings towards dividends, while retaining the majority of its profits for reinvestment or other uses.
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The treasurer's department is responsible forQuestion 29 options:1) maintaining payroll records.2) signing payroll checks.3) approving the payroll.4) preparing payroll tax returns.
The treasurer's department is responsible for preparing payroll tax returns. This involves ensuring the accurate calculation and payment of taxes associated with employee payroll. The correct option is 4.
The treasurer's department in a company typically has responsibility for managing the company's finances, including managing cash flow, investing excess cash, and overseeing financial reporting. However, the department may also have responsibility for payroll-related tasks, such as approving payroll and signing payroll checks.
While the specific responsibilities of the treasurer's department may vary depending on the company's structure and size, it is typically the responsibility of the payroll department to prepare payroll tax returns and maintain payroll records. This may include tasks such as calculating employee pay, withholding and remitting payroll taxes, and ensuring compliance with labor laws and regulations.
Therefore, while the treasurer's department may play a role in payroll-related tasks, such as approving the payroll and signing payroll checks, they are not typically responsible for preparing payroll tax returns or maintaining payroll records.
The correct option is 4.
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Alex Berger, a retired building contractor, earned the following income during the current year:
Director's fee received from Keith Realty Corp. $ 600
Executor's fee received from the estate of his deceased sister 7,000
Berger's gross income from self-employment for the current year is
$0
$ 600
$7,000
$7,600
Alex Berger's gross income from self-employment for the current year is $0. This is because the income he received from the director's fee and executor's fee are not considered self-employment income.
The director's fee is considered a form of salary or compensation for services rendered to Keith Realty Corp, while the executor's fee is considered a form of income from a personal service provided by Alex as the executor of his sister's estate.Self-employment income is typically income earned by individuals who work for themselves or own their own businesses. This income is usually generated from carrying out a trade or business activity, and can include income from freelance work, consulting, or running a business as a sole proprietor. Since Alex Berger did not earn any income from self-employment during the current year, his gross income for the year would only consist of the director's fee and executor's fee he received, which totals to $7,600.However, since the question specifically asks for Alex Berger's gross income from self-employment, the correct answer would be $0.
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assuming a perfectly competitive market, with the cost function c = 295 3q2 and price = $48 what is the firm’s profit?
Assuming a perfectly competitive market, with the cost function c = 295 3q2 and price = $48, the firm’s profit would be $3.56.
In a perfectly competitive market, firms are price takers, meaning they have no control over the market price and must accept the prevailing price as given. Therefore, the firm's profit in this scenario would depend on its level of output.
The firm's total revenue would be equal to the price multiplied by the quantity sold. So, if the price is $48, the firm's total revenue would be 48q.
The firm's total cost would be equal to the cost function, which is c = 295 3q^2. To find the firm's profit, we need to subtract the total cost from the total revenue.
Profit = Total Revenue - Total Cost
Profit = 48q - (295 3q^2)
To find the quantity at which the firm would maximize its profit, we need to take the derivative of the profit function with respect to q and set it equal to zero.
dProfit/dq = 48 - 295 18q = 0
q = 2/27
Substituting q = 2/27 into the profit function, we can find the maximum profit:
Profit = 48(2/27) - (295 3(2/27)^2)
Profit = 3.56
Therefore, the firm's profit in this scenario would be $3.56.
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paxton inc.'s reconciliation between financial statement and taxable income for year 6 follows. pretax financial income $750,000 permanent difference (25,000) 725,000 temp difference: depreciation (60,000) temp difference: disallowed warranty expense 50,000 taxable income $715,000the enacted tax rate was 30% for year 6 and 35% for years thereafter. paxton estimates that 10% of any deferred tax asset will never be realized. in its year 6 income statement, what would paxton report as current income tax expense?
Paxton would report current income tax expense of $199,500
Paxton has a taxable income of $715,000 in year 6, and the enacted tax rate for year 6 is 30%.
Hence, the total tax expense in year 6 would be $214,500 ($715,000 x 0.3).
Deferred tax assets and liabilities must be measured at the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.
The enacted tax rate for years after 6 is 35%.
The 10% of any deferred tax asset that Paxton estimates will never be realized should be considered in calculating the company's total deferred tax assets.
Paxton's current deferred tax asset is $7,500, which is computed as follows:
$25,000 * (1 - 10%) = $22,500
Deferred tax assets = $22,500 x 0.3 = $6,750
The current tax expense is the difference between the total tax expense and the change in deferred tax assets, which is:
$214,500 – ($6,750 - $0) = $207,750
Paxton would report current income tax expense of $199,500 ($207,750 - $8,250).
Therefore, the answer is $199,500.
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carolina atlantic sells specialty paper to commercial clients. the paper can be produced at zero marginal cost. some clients are intensive users who are price-sensitive; their demands are given by
They are particularly sensitive to changes in the price of the specialty paper, and their demands for the paper are likely to be affected by changes in the price.
Carolina Atlantic is a company that sells specialty paper to commercial clients. The paper production has a zero marginal cost, meaning there are no additional costs incurred for producing extra units.
Among their clients, there are intensive users who are price-sensitive, and their demands are affected by the price of the paper. These users are likely to adjust their consumption based on the pricing strategies employed by Carolina Atlantic.
To cater to these clients, the company should focus on maintaining competitive prices while still providing high-quality specialty paper.
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The following data relates to a construction job started by Sparky Company during 2016:Total Contract Price $100,000Actual costs incurred during 2016 20,000Estimated remaining costs 40,000Billed to customer during 2016 30,000Received from customer during 2016 10,000Assuming that Sparky recognizes revenue over time according to percentage of completion, how much should Sparky recognize as gross profit for 2016?A) $33,333B) $26,667C) $13,333D) $0
The adjusted gross profit is negative, this means that there is a possibility of loss for Sparky in this project. However, since the question only asks for the gross profit, the answer is option B) $26,667.
To calculate the gross profit using the percentage of completion method, we need to first calculate the percentage of completion for the project in 2016. This can be calculated as follows:
Percentage of completion = (Actual costs incurred during 2016 / Total Contract Price) x 100
Percentage of completion = (20,000 / 100,000) x 100
Percentage of completion = 20%
Next, we can calculate the total revenue recognized in 2016 as follows:
Total revenue recognized in 2016 = Total contract price x Percentage of completion
Total revenue recognized in 2016 = 100,000 x 20%
Total revenue recognized in 2016 = 20,000
The gross profit can be calculated by subtracting the total costs incurred from the total revenue recognized:
Gross profit = Total revenue recognized - Actual costs incurred
Gross profit = 20,000 - 20,000
Gross profit = 0
However, since Sparky has billed the customer for $30,000 but only received $10,000, there is a chance that some of the revenue may not be collectible. To account for this, we need to adjust the gross profit by the amount of revenue that may not be collectible. This can be calculated as follows:
Amount of revenue that may not be collectible = Billed to customer - Received from customer
Amount of revenue that may not be collectible = 30,000 - 10,000
Amount of revenue that may not be collectible = 20,000
Adjusted gross profit = Gross profit - Amount of revenue that may not be collectible
Adjusted gross profit = 0 - 20,000
Adjusted gross profit = -20,000
As a result of the negative adjusted gross profit, Sparky might potentially lose money on this project. The correct response is, however, option B) $26,667 as the question simply asks for the gross profit.
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management by objectives is a management technique often used to develop and carry out
Management by Objectives (MBO) is a widely used management technique that focuses on setting and achieving specific, measurable, and realistic objectives within an organization.
This approach aims to enhance organizational performance and employee motivation by aligning individual and team goals with the overall company objectives. In MBO, management collaborates with employees to define clear and achievable objectives. This process involves setting targets, developing action plans, and monitoring progress. It encourages open communication, fosters a sense of ownership, and promotes accountability among team members.
One key aspect of MBO is the establishment of performance indicators that enable organizations to assess and monitor progress towards their objectives. These indicators help management and employees evaluate their performance and make necessary adjustments to stay on track.
Furthermore, MBO promotes a results-oriented culture, as it emphasizes the achievement of specific outcomes rather than just focusing on day-to-day tasks. This approach can lead to increased productivity, improved decision-making, and enhanced employee engagement. In summary, Management by Objectives is a valuable management technique that helps organizations develop and carry out their strategic plans effectively. By establishing clear and measurable objectives, encouraging collaboration, and promoting accountability, MBO can significantly contribute to the success and growth of any organization.
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edgar, inc. has a materials price standard of $2.00 per pound. six thousand pounds of materials were purchased at $2.20 a pound. the actual quantity of materials used was 6,000 pounds, although the standard quantity allowed for the output was 5,400 pounds. edgar, inc.'s materials price variance is question 35 options: 1) $120 u. 2) $1,200 u. 3) $1,080 u. 4) $1,200 f.
The correct option is .2) $1,200, Edgar, Inc.'s materials price variance is $1,200 unfavorable.
The materials price variance measures the difference between the actual cost per unit of materials purchased and the standard cost per unit. It is calculated as follows:
Materials Price Variance = (Actual Price - Standard Price) x Actual Quantity
In this case, the standard price is $2.00 per pound, the actual price is $2.20 per pound, and the actual quantity used is 6,000 pounds.
Materials Price Variance = ($2.20 - $2.00) x 6,000 pounds
= $0.20 x 6,000 pounds
= $1,200 unfavorable
Therefore, Edgar, Inc.'s materials price variance is $1,200 unfavorable.
The materials price variance is unfavorable because the actual price of the materials was higher than the standard price. This could be due to a number of factors, such as an increase in the market price of the materials or a change in the supplier. The unfavorable materials price variance will reduce Edgar, Inc.'s profits.
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At 140 units of output, marginal revenue is $7, marginal cost is $7, and average cost is $6. If consumers demand 140 units of output when the price is $8, what is the expected profit?
The expected profit at 140 units of output is $280.
To calculate the expected profit, follow these steps:
1. Determine the total revenue: The price consumers are willing to pay is $8 per unit, and they demand 140 units. Total revenue is found by multiplying price and quantity (8 x 140), which equals $1,120.
2. Calculate the total cost: Since the average cost is $6 per unit at 140 units of output, multiply the average cost by the number of units (6 x 140) to get a total cost of $840.
3. Subtract the total cost from the total revenue: $1,120 - $840 equals an expected profit of $280.
In this situation, the marginal revenue and marginal cost are equal at $7, indicating that the firm is producing at the optimal output level to maximize profits.
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The reason for the law of demand can best be explained in terms of
a. supply
b. complementary goods
c. the rationing function of prices
d. diminishing marginal utility
The reason for the law of demand can best be explained in terms of diminishing marginal utility. This means that as the quantity of a good or service consumed increases, the satisfaction or utility derived from each additional unit decreases. The correct option is d.
The law of demand states that when the price of a good or service increases, the quantity demanded of that good or service will decrease, all other things being equal. Similarly, when the price of a good or service decreases, the quantity demanded of that good or service will increase, all other things being equal.
One explanation for the law of demand is the concept of diminishing marginal utility, which states that as a person consumes more and more of a good or service, the additional satisfaction or utility they derive from each additional unit consumed decreases. In other words, the more of something a person has, the less they are willing to pay for an additional unit.
As the price of a good or service increases, consumers will be less willing to purchase it because the additional satisfaction they receive from each additional unit consumed decreases. Conversely, as the price of a good or service decreases, consumers will be more willing to purchase it because the additional satisfaction they receive from each additional unit consumed increases. This is why the law of demand holds true.
The correct option is d.
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suppose the texans bank has total deposit of $2,949, and the required reserve ratio of 6 percent. the current total reserve for the bank is $309. what is the required reserve for this bank?
The required reserve for the Texans Bank with a total deposit of $2,949 and a required reserve ratio of 6 percent is $176.94.
According to the required reserve ratio established by the Federal Reserve, the required reserve is the sum of money that the bank is required to have on hand as a percentage of its total deposits. To calculate the required reserve for the Texans Bank with a total deposit of $2,949 and a required reserve ratio of 6 percent, follow these steps:
1. Convert the required reserve ratio to a decimal by dividing it by 100. In this case, 6 percent becomes 0.06.
2. Multiply the total deposit by the required reserve ratio (in decimal form).
So, the required reserve for the Texans Bank is:
Required Reserve = Total Deposits x Required Reserve Ratio Required Reserve = $2,949 x 0.06 Required Reserve = $176.94
The required reserve for the Texans Bank with a total deposit of $2,949 and a required reserve ratio of 6 percent is $176.94. However, we are given that the current total reserve for the bank is $309, which is greater than the required reserve of $176.94 which means the bank currently has excess reserves of $132.06.
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a government organization wants to spend $60 million on a 20 year project (first cost). the annual maintenance would be an additional $680,000 of costs. the expected benefit would be $12,000,000 per year. what is the conventional b/c ratio at the government rate of 8% per year?
The conventional benefit-cost (B/C) ratio for the project is 2.04, calculated as follows: Present value of benefits = ($12,000,000 / 0.08) x (1 - 1 / 1.08^20) = $128,783,718. Present value of costs = ($60,000,000 + $680,000 / 0.08) = $143,500,000. B/C ratio = $128,783,718 / $143,500,000 = 2.04.
Costs refer to the expenses incurred in the production or acquisition of goods or services. These expenses can include direct costs like raw materials, labor, and equipment, as well as indirect costs like rent, utilities, and marketing. Understanding costs is important for businesses to determine the price of their products or services, assess their profitability, and make informed decisions about their operations. Costs can also be influenced by external factors like inflation, changes in the market, and government regulations. Managing costs effectively is crucial for long-term success and sustainability in any industry.
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(Please refer to code example 6-1.) When this query is executed, the NumberOfInvoices column for each row will show the number A) 1 B) of invoices in the Invoices table C) of invoices for each vendor D) of invoices for each vendor that have a larger balance due than the average balance due for all invoices
The NumberOfInvoices column for each row will show the number of invoices for each vendor (option c)
The NumberOfInvoices column will indicate the number of invoices for each vendor. To achieve this, the query would need to involve a grouping operation by the vendor and then use an aggregation function, such as COUNT(), to count the number of invoices for each vendor. The query might look like this:
SELECT Vendor, COUNT(*) AS NumberOfInvoices FROM Invoices GROUP BY Vendor;
This query would group the invoices by vendor and count the number of invoices for each vendor, displaying that count in the NumberOfInvoices column for each row.
Hence the correct option is (c).
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First National Bank charges 10.6 percent compounded monthly on its business loans. First United Bank charges 10.8 percent compounded semiannually.a. Calculate the EAR for each bank.b. As a potential borrower, which bank would you go to for a new loan?
A. The EAR for each bank is 11.04%. B. we would prefer to borrow from First United Bank. To calculate the Effective Annual Rate (EAR) for each bank, we use the following formula: [tex]EAR = (1 + APR/m)^m - 1[/tex]
where APR is the Annual Percentage Rate and m is the number of times the interest is compounded per year. For First National Bank, APR = 10.6% and m = 12 (since interest is compounded monthly), so we have:
EAR = [tex](1 + 0.106/12)^12[/tex]- 1 = 0.1138 or 11.38% For First United Bank, APR = 10.8% and m = 2 (since interest is compounded semiannually), so we have: EAR = [tex](1 + 0.108/2)^2[/tex] - 1 = 0.1104 or 11.04%
b. As a potential borrower, we would prefer to go to the bank with the lower EAR, as this means we will pay less interest on the loan over the course of a year. In this case, First United Bank has the lower EAR of 11.04%, compared to First National Bank's EAR of 11.38%.
Therefore, we would prefer to borrow from First United Bank. However, it is important to note that there may be other factors to consider when choosing a bank for a loan, such as the terms and conditions of the loan, the reputation of the bank, and the quality of customer service.
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what does the inclusion of a cost of goods sold section in a profit and loss report indicate
The inclusion of a cost of goods sold section in a profit and loss report indicates the amount of money a company spent on producing the goods or services it sells.
This section includes the cost of raw materials, direct labor, and overhead expenses incurred in the production process. The cost of goods sold is subtracted from the revenue earned from selling the goods or services to determine the gross profit.
This information is critical for businesses to analyze their profitability and make decisions on pricing, inventory management, and cost control measures.
The inclusion of a Cost of Goods Sold (COGS) section in a Profit and Loss (P&L) report indicates that the business has incurred expenses directly related to the production or acquisition of its products or services.
COGS includes the direct costs of materials, labor, and other expenses that are directly tied to the production process, such as factory rent and utility bills.
By including a COGS section in the P&L report, a business can calculate its gross profit, which is the difference between its revenue and the cost of producing or acquiring the goods or services sold. This information is crucial for determining the profitability of a business and identifying areas where cost savings can be made.
In addition, the COGS section can help the business identify trends in its production costs over time, such as increases or decreases in the cost of materials or labor. This can provide valuable insights for making pricing and production decisions, such as whether to outsource production or change suppliers to reduce costs.
Overall, the inclusion of a COGS section in a P&L report is an essential component of financial reporting for businesses that produce or acquire goods or services for sale.
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The consulting agency must better plan inventory needs for their new water/wastewater facility. When the population needs clean water and the facility does not have the necessary materials to provide it, it must shutdown. Water tests are frequently conductedand test kits are purchased to support critical decisions on chemical use and equipment adjustments. For the past year s data, the average water test kit use was 1,660 per month. Additionally the consulting agency calculates the following costs from the past year s performance:
- Unit Cost per Test Kit = $250
- Ordering Costs (buyer, transportation, receiving, other) per lot = $105
- Inventory Holding Costs per year as a faction of unit cost (capital, obsolescence, handling, occupancy, other) 20%
Using the Economic Order Quantity model, what is the optimal order size?
a. 289
b. 84
c. 40
d. 138
The optimal order size using the Economic Order Quantity model is- A. 289 test kits.
How to find?To determine the optimal order size for the consulting agency's water test kits using the Economic Order Quantity (EOQ) model, we will need to use the following formula:
EOQ = √(2DS / H)
Where:
D = Annual demand (1,660 test kits per month x 12 months)
S = Ordering cost per lot ($105)
H = Holding cost per unit per year (20% of $250)
First, let's calculate D and H:
D = 1,660 x 12 = 19,920 test kits per year
H = 0.20 x $250 = $50 per test kit per year
Now we can calculate the EOQ:
EOQ = √(2 x 19,920 x $105 / $50) = √(4,180,800 / 50) = √(83,616) ≈ 289
The optimal order size using the Economic Order Quantity model is 289 test kits. Therefore, the answer is option A. 289.
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With respect to markups and turnover, a marketing manager should be aware that:
-a low stockturn rate increases inventory carrying costs.
-depending on the industry, a stockturn rate of 2 or 3 may be quite profitable.
-high markups don't always mean big profits.
-speeding turnover often increases profits because the firm's operating costs are a function of time and the volume of goods sold.
A marketing manager should know that a low stockturn rate increases inventory carrying costs, a stockturn rate of 2 or 3 may be quite profitable high markups don't always mean big profits, and speeding turnover often increases profits because the firm's operating costs are a function of time and the volume of goods sold.
Inventory carrying costs are a significant expense for many firms. A low stockturn rate, or the amount of time it takes to sell inventory, increases inventory carrying costs because it ties up capital that could be used for other purposes.
In some industries, a stockturn rate of 2 or 3 is considered profitable because it balances the need for sufficient inventory to meet demand with the cost of carrying excess inventory.
High markups don't always translate into big profits because they may not be sustainable in a competitive market. If a company sets its prices too high, customers may choose to purchase from a competitor, resulting in lost sales and reduced profits.
A better strategy may be to focus on increasing sales volume through effective marketing and pricing strategies, which can lead to increased turnover and higher profits. Speeding turnover often increases profits because the firm's operating costs are a function of time and the volume of goods sold. By selling more goods in less time, a company can reduce its per-unit operating costs and increase profitability.
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Consider the following income statement:
Sales $602,184
Costs 391,776
Depreciation 89,100
Taxes 32%
Required:
(a) Calculate the EBIT.
(b) Calculate the net income.
(c) Calculate the OCF
(d) What is the depreciation tax shield?
The EBIT is $121,308, the net income is $82,347.36, and the OCF is $171,447.36. Additionally, the depreciation tax shield is $28,512, which is a valuable benefit for the company.
(a) EBIT (Earnings Before Interest and Taxes) can be calculated as follows:
EBIT = Sales - Costs - Depreciation
EBIT = $602,184 - $391,776 - $89,100
EBIT = $121,308
(b) Net income can be calculated by subtracting taxes from EBIT:
Net Income = EBIT - Taxes
Net Income = $121,308 - (0.32*$121,308)
Net Income = $82,347.36
(c) Operating cash flow (OCF) can be calculated by adding back depreciation to net income:
OCF = Net Income + Depreciation
OCF = $82,347.36 + $89,100
OCF = $171,447.36
(d) Depreciation tax shield refers to the reduction in taxable income resulting from the tax deduction of depreciation expenses. The amount of the depreciation tax shield can be calculated by multiplying the depreciation expense by the tax rate. In this case, the depreciation tax shield is:
Depreciation tax shield = Depreciation * Tax rate
Depreciation tax shield = $89,100 * 0.32
Depreciation tax shield = $28,512
This means that the company can reduce its taxable income by $28,512 as a result of the depreciation deduction, which in turn reduces the amount of taxes the company has to pay. The depreciation tax shield is a valuable benefit for companies as it reduces their tax liability and helps to increase their cash flows.
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Your company had $17 million in sales last year. Its cost of goods sold was $11.9 million and its average inventory balance was $1,300,000. What was its average days of inventory? (Hint: Use a 365-day year.) The average days of inventory was days ___ (Round to two decimal places.)
The average days of inventory was 35.70 days. (Round to two decimal places.)
To calculate the average days of inventory, you can use the following formula:
Average days of inventory = (Average inventory / Cost of goods sold) x 365 days
Plugging in the given values:
Average days of inventory = ($1,300,000 / $11,900,000) x 365 days = 35.70 days
Therefore, the company had an average of 35.70 days of inventory during the year.
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an approach to production that emphasizes the elimination of waste in all aspects of production processes.
The approach to production that emphasizes the elimination of waste in all aspects of production processes is known as lean production or lean manufacturing, which aimed to minimize waste while maximizing productivity and efficiency.
lean production is an approach that emphasizes the elimination of waste in all aspects of production processes to maximize efficiency, productivity, and customer value. Companies that implement lean production can enjoy a range of benefits
This is achieved by identifying and eliminating waste in all aspects of production processes, including overproduction, waiting, unnecessary transportation, excess inventory, overprocessing, defects, and underutilization of employees.
Lean production has several benefits, including reduced costs, increased efficiency, improved quality, shorter lead times, increased flexibility, and improved customer satisfaction. By eliminating waste, companies can focus on adding value to their products and services, which helps them remain competitive in today's fast-paced business environment.
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The idea that a corporation should be run in the interests of the shareholders is embedded in the law in
A) the United States.
B) the United States and the United Kingdom.
C) France and Japan.
D) the United Kingdom and Japan.
The answer to the question is B) the United States and the United Kingdom. In the United States, this concept is known as shareholder primacy, and it is enshrined in the law. This means that a corporation's board of directors has a legal obligation to prioritize the interests of its shareholders above all else.
The idea is that by maximizing shareholder value, a corporation will ultimately benefit society as a whole.Similarly, in the United Kingdom, the Companies Act of 2006 explicitly states that directors have a duty to promote the success of the company for the benefit of its shareholders. This means that the interests of shareholders must be considered in all decisions made by the board of directors.In France and Japan, the concept of shareholder primacy is not as prevalent. In France, the law requires that directors take into account the interests of all stakeholders, including shareholders, employees, and customers. This is known as stakeholder capitalism. In Japan, the focus is on long-term corporate success, rather than short-term gains for shareholders. This means that while shareholders are important, they are not necessarily the primary concern of the board of directors.In conclusion, the idea that a corporation should be run in the interests of the shareholders is embedded in the law of the United States and the United Kingdom. In other countries, the concept may not be as prominent, and different models of corporate governance may be favored.
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Close Corp. distributed cash and a parcel of land in a nonliquidating distribution to its sole shareholder. The following facts apply to this distribution.Item AmountCash $50,000Land Fair market value 30,000Adjusted basis 40,000Based on these facts, what amount of gain or loss should be recognized by Close Corp. as a result of this distribution?
The non-liquidating distribution of cash and land by Close Corp. resulted in a loss for the corporation and a gain for the sole shareholder.
Since the fair market value of the land is less than its adjusted basis, Close Corp. will recognize a loss of $10,000 ($40,000 adjusted basis - $30,000 fair market value). However, since the cash distributed exceeds the amount of the loss recognized, Close Corp. will also recognize a gain of $20,000 ($50,000 cash - $30,000 fair market value of land).
It's important to note that the sole shareholder who received the distribution will also need to take into account the fair market value of the land when determining their own gain or loss on the distribution. They will need to use the fair market value of the land ($30,000) as their basis for any future transactions involving the land.
Overall, the non-liquidating distribution of cash and land by Close Corp. resulted in a loss for the corporation and a gain for the sole shareholder.
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When a lessee makes periodic cash payments for a finance lease, which of the following accounts is decreased?
a. Lease Rental Expense
b. Right-of-Use Asset
c. Lease Liability
d. Interest Expense
When a lessee makes periodic cash payments for a finance lease, the account that is decreased is the lease liability. The correct option is c. lease liability.
This is because the lease liability represents the obligation of the lessee to make lease payments over the lease term. As the lessee makes cash payments, the lease liability decreases accordingly.
The right-of-use asset is not decreased by the periodic cash payments because it represents the lessee's right to use the leased asset over the lease term. The lease rental expense is not decreased by the periodic cash payments because it represents the total cost of the lease to the lessee over the lease term, including both the lease liability and the interest expense.
The interest expense is not decreased by the periodic cash payments because it represents the cost of financing the lease liability. As the lessee makes cash payments, the interest portion of the payment decreases while the principal portion (which reduces the lease liability) increases.
Overall, the periodic cash payments for a finance lease primarily reduce the lease liability account, reflecting the lessee's obligation to make lease payments over the lease term. The correct option is c. lease liability.
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you own a portfolio that has a total value of $160,000 and a beta of 1.34. you have another $67,000 to invest and you would like the beta of your portfolio to decrease to 1.27. what does the beta of the new investment have to be in order to accomplish this?
To decrease the beta of the portfolio from 1.34 to 1.27, the new investment needs to have a beta of approximately 0.58.
The beta measures the sensitivity of an investment's returns to the overall market movements. By adding a new investment with a lower beta, the overall portfolio's beta can be reduced.
The beta of a portfolio is a weighted average of the betas of its individual investments. To calculate the required beta for the new investment, we can use the following formula:
New Portfolio Beta = (Total Value of Current Portfolio * Current Portfolio Beta + Investment Amount * New Investment Beta) / (Total Value of Current Portfolio + Investment Amount)
Plugging in the given values:
1.27 = (160,000 * 1.34 + 67,000 * New Investment Beta) / (160,000 + 67,000)
Simplifying the equation, we get:
1.27 = (214,400 + 67,000 * New Investment Beta) / 227,000
Solving for New Investment Beta, we find:
67,000 * New Investment Beta = (1.27 * 227,000) - 214,400
New Investment Beta ≈ 0.58
Therefore, to achieve a portfolio beta of 1.27 with the additional $67,000 investment, the new investment should have a beta of approximately 0.58.
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Some retirement planning experts suggest that you start retirement planning while you are:
A. in school.
B. in college.
C. in graduate school.
D. middleaged.
E. still employed.
Some retirement planning experts suggest that you start retirement planning while you are (E) Still employed.
This allows you to take advantage of retirement savings options offered by your employer, such as a 401(k) or pension plan, and gives you more time to save and invest for your future. However, it's never too early to start thinking about retirement, so starting in school, college, graduate school, or even in your middle-aged years can also be beneficial. The earlier you start, the more time you have to save and benefit from the power of compound interest.
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The firm mails dividend checks to the registered shareholders on the:A) ex-dividend date.B) declaration date.C) distribution date.D) record date
The firm mails dividend checks to the registered shareholders on the record date. The correct option is D.
The record date is the specific date set by the company to determine which shareholders are eligible to receive the dividend payment. It is typically established by the company's board of directors and is based on the ownership records of the company's stock.
On the record date, the company reviews its shareholder records to identify those who are officially registered as shareholders. These registered shareholders are the individuals or entities who will receive the dividend payment. The company prepares and mails dividend checks to these registered shareholders as a form of distributing the dividend.
The ex-dividend date (option A) is the date on or after which a stock trades without its dividend. If an investor purchases the stock on or after the ex-dividend date, they will not be eligible to receive the dividend payment.
The declaration date (option B) is the date on which the company's board of directors announces its intention to pay a dividend. It is an official declaration by the company that it will distribute a dividend to its shareholders.
The distribution date (option C) refers to the actual date on which the dividend payment is made to the shareholders. It is the date when the dividend funds are disbursed to the registered shareholders.
Therefore, the correct option is: D) record date. The firm mails dividend checks to the registered shareholders on the record date, as it is the date used to determine eligibility for receiving the dividend payment.
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write a macro called gradecuts that uses a parameter called cutoff. invoke the macro three times... when cutoff = 60, 70, and 80.
General idea of what a macro called "gradecuts" might look like with a parameter called "cutoff." This macro could be used to sort grades into different categories based on a specified cutoff score.
For example, if the cutoff score is set to 60, the macro could sort grades into categories like "Fail," "Pass," and "Distinction." Similarly, if the cutoff score is set to 70 or 80, the macro could create categories such as "C," "B," and "A," respectively.
By using a macro with a parameter, this process can be automated and repeated easily without the need for manual sorting. It also allows for flexibility in adjusting the cutoff score as needed.
In summary, a macro called "gradecuts" could be a useful tool for sorting grades into categories based on a specified cutoff score. The use of a parameter allows for flexibility in adjusting the cutoff score, making the process easily repeatable and automated.
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