If a panic causes Indian depositors to withdraw their money from Japanese banks, it would cause the Japanese yen to depreciate, since the supply of yen has increased.
A currency's value is dependent on various economic factors, such as supply and demand, economic growth, inflation rates, and interest rates. When there is more demand than supply for a currency, its value rises, and when there is more supply than demand, the value of the currency falls.
In the given scenario, if Indian depositors withdraw their money from Japanese banks, they will sell their yen for Indian Rupees. This will lead to an increase in the supply of yen in the market and a decrease in the demand for yen.
As a result, the value of yen will decrease, and it will depreciate. Moreover, if the demand for yen decreases, the interest rates will decrease. This will cause the depreciation of yen even further. Therefore, if a panic causes Indian depositors to withdraw their money from Japanese banks.
To know more about Indian visit:
https://brainly.com/question/20398734
#SPJ11
Wilson Inc. has budgeted unit sales of 204,000 units for March, 2020 and 240,000 units for April 2020. The company has a policy of having an inventory of units on hand at the end of each month equal to 30% of next month's budgeted unit sales. If there were 61,200 units of inventory on hand at the end of February, how many units should be produced in March in order for the company to meet its goals? 1) 276,000 units 2) 214,800 units 3) 193,200 units 4) 204,000 units
The correct option is Option 1, 276,000 units.
Wilson Inc. has budgeted unit sales of 204,000 units for March 2020 and 240,000 units for April 2020.
The company has a policy of having an inventory of units on hand at the end of each month equal to 30% of next month's budgeted unit sales.
If there were 61,200 units of inventory on hand at the end of February, the number of units that should be produced in March to meet its goals can be found as follows:
Calculation of the units to be produced in March:
April sales: 240,000
units Inventory at the end of March = 240,000 x 30/100
= 72,000 units (since it is 30% of April's sales)
Units required in April = April sales + Ending Inventory + Beginning Inventory
= 240,000 + 72,000 + 61,200
= 250,800 units
Now, we know that units required in April equal units produced in March
Hence, the number of units that should be produced in March in order for the company to meet its goals is 250,800.
To learn more about budgeted unit sales, visit:
https://brainly.com/question/31645984
#SPJ11
cheers inc. operates as a partnership. now the parents have decided to convert the business into a regular corporation. which of the following statements is correct? question 2 options: a. assuming cheers is profitable, less of its income will be subject to federal income taxes. b. cheers will now be subject to fewer regulations. c. cheers' shareholders (the ex-partners) will now be exposed to less liability. d. cheers' investors will be exposed to less liability, but they will find it more difficult to transfer their ownership. e. cheers will find it more difficult to raise additional capital.
The correct statement is c. Cheers' shareholders (the ex-partners) will now be exposed to less liability.
By converting the business from a partnership to a regular corporation, Cheers' owners (partners) will become shareholders of the corporation. One of the main advantages of operating as a corporation is that it offers limited liability to its shareholders. This means that the personal assets of the shareholders are protected from the corporation's debts and liabilities. In a partnership, the partners have unlimited liability, meaning their personal assets can be used to satisfy business debts and obligations. Therefore, converting to a corporation reduces the liability exposure for the shareholders (ex-partners) of Cheers.
However, it's important to note that other statements listed in the options are not correct. Converting to a regular corporation does not necessarily result in less income subject to federal income taxes (option a), fewer regulations (option b), or a more difficult capital-raising process (option e). It may also not directly impact the ease of transferring ownership (option d). The reduction in liability is the key benefit associated with converting to a regular corporation.
Learn more about capital raising here:
https://brainly.com/question/29552859
#SPJ11
Study the information given below and answer each of the following questions independently:
3.1 Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. 3.2 Use the marginal income ratio to calculate the break-even value. 3.3 Calculate the new total Marginal Income and Net Profit/Loss, if an increase in advertising expense
by R100 000 is expected to increase sales by 400 units. 3.4 How many units must be sold if the company wishes to earn a net profit of R298 920. 3.5 Based on the expected sales volume of 2 400 units, determine the sales price per unit (expressed
in rands and cents) that will enable the company to break even.
INFORMATION
Samcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30
June 2022:
1. Total production and sales 2 400 units
2. Selling price per table R1 200
3. Variable manufacturing costs per table:
Direct material R288
Direct labour R192
Overheads R96
4. Fixed manufacturing overheads R216 960
5. Other costs:
Fixed marketing and administrative costs R144 000
Sales commission 5%
1. The total marginal income for selling all tables can be calculated by subtracting the total variable costs from the total sales revenue. The net profit/loss can be determined by subtracting the total fixed costs from the total marginal income.
2. The break-even value can be calculated by dividing the total fixed costs by the marginal income ratio.
3. By increasing advertising expenses by R100,000, sales are expected to increase by 400 units. The new total marginal income and net profit/loss can be calculated using the updated sales volume and expenses.
4. The number of units that must be sold to achieve a net profit of R298,920 can be calculated by adding the desired net profit to the total fixed costs and dividing the result by the contribution margin per unit.
5. To determine the sales price per unit that will enable the company to break even with an expected sales volume of 2,400 units, the total fixed costs can be divided by the expected sales volume and added to the variable cost per unit.
3.1 To calculate the total marginal income, we need to subtract the total variable costs from the total sales revenue. The total variable costs per table can be calculated by summing the direct material, direct labour, and overhead costs, which amount to R576 per table. Therefore, the total marginal income for selling all 2,400 tables would be (2,400 x R1,200) - (2,400 x R576) = R2,880,000. To determine the net profit/loss, we subtract the total fixed costs of R360,960 (fixed manufacturing overheads + fixed marketing and administrative costs) from the total marginal income, resulting in a net profit/loss of R2,519,040.
3.2 The marginal income ratio can be calculated by dividing the marginal income by the sales revenue. In this case, the marginal income ratio is R2,880,000 / (2,400 x R1,200) = 0.8. To calculate the break-even value, we divide the total fixed costs of R360,960 by the marginal income ratio of 0.8, resulting in a break-even value of R451,200.
3.3 By increasing advertising expenses by R100,000, sales are expected to increase by 400 units. This means the new total sales volume would be 2,400 + 400 = 2,800 units. To calculate the new total marginal income, we need to multiply the new sales volume by the selling price per table (R1,200) and subtract the total variable costs (R576) per table multiplied by the new sales volume. The new total marginal income would be (2,800 x R1,200) - (2,800 x R576) = R3,360,000. To calculate the net profit/loss, we subtract the total fixed costs of R360,960 from the new total marginal income, resulting in a net profit/loss of R2,999,040.
3.4 To determine the number of units that must be sold to achieve a net profit of R298,920, we need to add the desired net profit to the total fixed costs and divide the result by the contribution margin per unit. The contribution margin per unit can be calculated by subtracting the total variable costs per unit (R576) from the selling price per unit (R1,200), which gives us R624. Therefore, the number of units that must be sold would be (R298,920 + R360,960) / R624 = 960 units.
3.5 To determine the sales price per unit that will enable the company to break even with an expected sales volume of 2,400 units, we need to calculate the total variable costs per unit (R576) and add it to the total fixed costs (R360,960). The break-even point in terms of sales revenue can be calculated by dividing the total fixed costs plus total variable costs per unit by the expected sales volume, which gives us (R360,960 + R576) / 2,400 = R161.90. Therefore, the sales price per unit that will enable the company to break even would be R161.90.
Learn more about income here: brainly.com/question/2194020
#SPJ11
In general journal form, record adjusting entries for the following items for Cornish Accounting Co. at December 31, 2020. Show calculations where necessary.
a) On January 3, 2015, $5,500 of supplies were purchased and recorded as an asset. A count revealed $500 still on hand at December 31, 2020.
b) Services performed during December but not yet billed to customers totalled $2,500.
c) On July 1, 2020, a $10,000 car was purchased on account. The car is expected to last 4 years and have no residual value at the end of its useful life.
d) On December 31, 2020 utilities owed but not yet paid amounted to $500.
e) On January 10, 2015 Cornish Accounting Co. accepted a $5,000 deposit from a client for tax work to be completed during the year. The deposit was recorded as unearned revenue. On December 31, 2020 all the tax work for the client is complete.
In general journal form, the adjusting entries for the given items would be recorded as follows:a) To adjust the supplies account based on the count:
Date: December 31, 2020,Debit: Supplies Expense ($5,000) [($5,500 - $500) - $5,000],Credit: Supplies ($5,000)
b) To recognize the revenue for services performed but not yet billed:Date: December 31, 2020
Debit: Accounts Receivable ($2,500)
Credit: Service Revenue ($2,500)
c) To record depreciation expense for the car: Date: December 31, 2020
Debit: Depreciation Expense ($2,500) [($10,000 / 4 years) x 6 months]
Credit: Accumulated Depreciation ($2,500)
d) To recognize the utilities expense for the amount owed but not yet paid: Date: December 31, 2020 ,Debit: Utilities Expense ($500),Credit: Utilities Payable ($500)
e) To recognize the revenue for the tax work completed: Date: December 31, 2020,Debit: Unearned Revenue ($5,000)
Credit: Service Revenue ($5,000)
To know more about Journal entry visit-
brainly.com/question/33045014
#SPJ11
What are the skills required by a manager as he/she moves up the hierarchy? What methods do you suggest to equip managers with those skills.
Managers are the people responsible for overseeing and directing a company's operations, resources, and staff. They have a significant impact on an organization's success or failure. As they move up the hierarchy, managers must acquire new skills to manage their responsibilities successfully.
Here are the skills required by a manager as he/she moves up the hierarchy.
1. Technical skills - This refers to the knowledge and abilities required to perform specific tasks. The ability to use specific tools, software, and techniques is an example of technical ability. As they progress through the hierarchy, managers must develop an understanding of their company's specific products, services, and technologies.
2. Human relations skills - This refers to the ability to interact effectively with others. A manager's success depends on their ability to motivate, direct, and communicate with their subordinates. As they move up the hierarchy, managers must learn how to create a positive work environment, resolve conflicts, and build productive relationships with colleagues.
3. Conceptual skills - This refers to the ability to understand the company's big picture and how the parts fit together. Managers at this level should be able to analyze complex data and make sound decisions that consider the company's goals. They should be able to understand the competition, market trends, and the broader economic environment.
To equip managers with the necessary skills, here are the suggested methods:
1. Mentoring programs - One way to equip managers with skills is to pair them with experienced executives who can offer guidance, advice, and support. Mentoring provides a safe and supportive environment for learning and feedback.
2. Formal training - Managers can benefit from formal training programs that provide them with new knowledge, skills, and perspectives. Training programs can be conducted in-house or externally.
3. Coaching and feedback - Coaching and feedback provide managers with constructive criticism and suggestions for improvement. Managers should receive regular performance reviews that outline their strengths and weaknesses and provide guidance on how to improve.
4. Job rotation - Job rotation provides managers with an opportunity to learn new skills and gain experience in different areas of the company. This can help them develop a more comprehensive understanding of the company and its operations.In conclusion, the skills required by a manager change as they move up the hierarchy. Managers must have technical, human relations, and conceptual skills to be successful.
To equip managers with the necessary skills, companies can use mentoring programs, formal training, coaching and feedback, and job rotation.
To know more about skills required a manager visit:
ttps://brainly.com/question/30236973
all of the following are accurate in regard to using a standard hour plan except select one: a. it encourages employees to work as quickly as they can to complete their tasks b. they should be used with jobs that are very standardized c. complex jobs work well with this type of incentive plan. d. quality may suffer as a result of using this type of plan. e. the employee controls their take home pay based on how motivated they are to work beyond their goals.
A standard hour plan is an incentive system where employees are paid based on the number of hours they complete a task compared to a standard or expected time for completing that task. option C is correct
The incorrect statement is a. It encourages employees to work as quickly as they can to complete their tasks.
The goal is to reward employees for completing tasks efficiently and incentivize productivity.
The accurate statements about using a standard hour plan are:
b. They should be used with jobs that are very standardized: Standard hour plans work best with jobs that have well-defined and repetitive tasks, making it easier to establish standard times for completion.
d. Quality may suffer as a result of using this type of plan: The emphasis on completing tasks quickly may lead to a decrease in quality if employees prioritize speed over accuracy or attention to detail.
e. The employee controls their take-home pay based on how motivated they are to work beyond their goals: With a standard hour plan, employees have the opportunity to increase their earnings by exceeding the standard time for completing tasks, thus motivating them to work harder.
Therefore, the correct answer is c. Complex jobs do not work well with this type of incentive plan.
learn more about employees here :
https://brainly.com/question/18633637
#SPJ11
which of the following is correct about vicarious liability? a: vicarious liability only applies when one person is legally responsible for the actions of another individual b: vicarious liability is derived from old english common law for the master to answer for actions of servants c: vicarious liability relates to when a business creates a product and it harms a customer d: only a and b
Option (D) is correct. Vicarious liability applies when one person is legally responsible for the actions of another individual, and it is derived from old English common law where the master is held accountable for the actions of servants. This means that even if the person being held liable did not directly commit the wrongful act, they can still be held responsible.
Vicarious liability is a legal doctrine that holds one party accountable for the wrongful actions or omissions of another party. Option (A) is correct because vicarious liability applies when one person is held legally responsible for the actions of another individual. This means that even if the person being held liable did not directly commit the wrongful act, they can still be held responsible.
Option (B) is also correct. Vicarious liability has its origins in old English common law, where the principle of "respondeat superior" held masters responsible for the actions of their servants. This concept recognizes that an employer should bear the responsibility for the actions of their employees or agents acting within the scope of their employment.
Option (C) is incorrect. Vicarious liability is not specifically related to product liability. Product liability refers to the legal responsibility of a business or manufacturer for any harm caused by their defective or dangerous products.
Therefore, the correct answer is option (D) - "only a and b."
Learn more about Vicarious liability here:
brainly.com/question/31103767
#SPJ11
air Canada defined benefit pension plans
write an executive summary of the case identify and discuss the risks posed by pensions in general, and with respect to investment decisions in particular discuss the impact that the the IFS adoption would have on Air Canada your recommendation (supported by arguments - 40 points)
Air Canada should consider diversifying its investments to manage risks and ensure the financial sustainability of its pension plan. Diversification can help manage risks associated with market volatility and investment decisions.
Air Canada should adopt the IFS as it would lead to greater transparency and accountability in financial reporting. Additionally, Air Canada should consider diversifying its investments to manage risks and ensure the financial sustainability of its pension plan. Risks Posed by Pensions in General Pensions in general pose several risks which can affect the financial sustainability of pension plans. Market volatility is one such risk which arises due to fluctuations in the stock market and can lead to underfunded pension plans. Investment decisions also pose a risk as poor investment decisions can lead to losses and underfunding. Longevity risk arises when retirees live longer than expected and the pension plan is unable to sustain the payments.
However, this would lead to greater transparency and accountability in financial reporting and provide stakeholders with a better understanding of the financial position of the company. Recommendation It is recommended that Air Canada adopt the IFS as it would lead to greater transparency and accountability in financial reporting.
To know more about Pension Plan visit-
https://brainly.com/question/28319433
#SPJ11
The City of San Antonio is considering various options for providing water in its 50 -year plan, including desalting. One brackish aquifer is expected to yield desalted water that will generate revenue of $4.1 million per year for the first 4 years, after which less production will decrease revenue by 10% per year each year. If the aquifer will be totally depleted in 24 years, what is the present worth of the desalting option revenue at an interest rate of 6% per year? The present worth of the desalting option revenue at an interest rate of 6% per year is determined to be $
The present worth of the desalting option revenue, considering a decreasing revenue by 10% per year and an interest rate of 6% per year, is approximately $25.55 million.
To calculate the present worth of the desalting option revenue, we need to consider the revenue generated over the 24-year period and discount it back to the present value using the interest rate of 6% per year.
The revenue generated by the aquifer is $4.1 million per year for the first 4 years. After that, the revenue decreases by 10% each year. To calculate the revenue for each subsequent year, we can multiply the previous year's revenue by 90% (1 - 10%).
Using a geometric progression formula to calculate the sum of the decreasing revenues, we can obtain the total revenue over the 24-year period. Then, we can discount this total revenue back to the present value using the interest rate of 6% per year.
Calculating the sum of the decreasing revenues over 24 years, we get:
Revenue = $4.1 million + $4.1 million * 0.9 + $4.1 million * [tex]0.9^2[/tex]+ ... + $4.1 million * [tex]0.9^{20[/tex] + $4.1 million *[tex]0.9^{21[/tex]+ $4.1 million *[tex]0.9^{22[/tex] + $4.1 million * [tex]0.9^{23[/tex] + $4.1 million * [tex]0.9^{24[/tex]
Using the formula for the sum of a geometric progression, the total revenue is approximately $88.035 million.
To calculate the present worth of this revenue, we need to discount it back to the present value. Using the formula for present worth (PV) of a future value (FV) with an interest rate (i) and a number of periods (n), we get:
PV = FV / [tex](1 + i)^n[/tex]
Plugging in the values, the present worth is approximately $25.55 million.
Therefore, the present worth of the desalting option revenue at an interest rate of 6% per year is approximately $25.55 million.
Learn more about interest here: https://brainly.com/question/26457073
#SPJ11
Critically think about what is happening to the UK housing market and link it to the major economic concepts such as elasticity, price elasticity of demand, price elasticity of supply, government housing policy, four main economic goals, and general government economic policy.
The UK housing market has experienced significant changes over the years, and this has been linked to major economic concepts such as elasticity, price elasticity of demand, price elasticity of supply, government housing policy, the four main economic goals, and general government economic policy. One of the key factors influencing the UK housing market is government housing policy. Governments have played a significant role in the housing market through their policies, regulations, and incentives.
For example, the UK government has implemented policies such as the Help to Buy scheme, which provides support for first-time buyers to purchase a property. This policy has increased the demand for homes, leading to an increase in house prices. In terms of elasticity, this indicates that the demand for houses is relatively elastic, as small changes in price lead to significant changes in demand.
In conclusion, the UK housing market is a complex system that is influenced by various economic concepts such as elasticity, price elasticity of demand, price elasticity of supply, government housing policy, the four main economic goals, and general government economic policy. Governments play a critical role in shaping the housing market through their policies, regulations, and incentives. The UK government's housing policies have been designed to increase the supply of affordable housing, but have also led to an increase in demand, resulting in higher house prices.
To know more about UK visit:
https://brainly.com/question/1110306
#SPJ11
Expenses for a Pizza restaurant include raw material for pizza at $5.00 per slice, $102.00 as monthly rental and $40.00 monthly as insurance. Lost sale expense is considered to be $5.00 per unhappy customer. Leftover Pizza can be sold for $3. The restaurant is open 25 days in a month.
Today the restaurant prepared 200.00 pizza slices and sells them for $15.00/slice. There was a party at a nearby office so the demand for pizza went up to 228.00 slices. What is the daily fixed costs expense?
The daily fixed costs expense is the amount the restaurant needs to cover every day to cover its fixed expenses like rent and insurance. In this case, the daily fixed costs expense for the pizza restaurant is $5.68.
The daily fixed costs expense for the pizza restaurant can be calculated by adding up the monthly rental and insurance expenses and dividing it by the number of days the restaurant is open in a month.
Given:
- Monthly rental expense: $102.00
- Monthly insurance expense: $40.00
- Number of days open in a month: 25
Calculation:
Total monthly fixed costs expense = Monthly rental expense + Monthly insurance expense
= $102.00 + $40.00
= $142.00
Daily fixed costs expense = Total monthly fixed costs expense / Number of days open in a month
= $142.00 / 25
= $5.68
Therefore, the daily fixed costs expense for the pizza restaurant is $5.68.
Learn more about fixed costs from the below link:
https://brainly.com/question/20670674
#SPJ11
On June 3, Sunland Company sold to Chester Company merchandise having a sale price of $4,600 with terms of 2/10,n/60, f.o.b. shipping point. An invoice totaling $93, terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for the balance due from Chester Company. (a) Prepare journal entries on the Sunland Company books to record all the events noted above under each of the following bases. (1) Sales and receivables are entered at gross selling price. (2) Sales and receivables are entered at net of cash discounts.
Sales and receivables are entered at gross selling price:
June 3:
Accounts Receivable - Chester Company Dr. $4,600
Sales Revenue Cr. $4,600
June 8:
Freight Expense Dr. $93
Accounts Payable - John Booth Transport Service Cr. $93
June 12:
Cash Dr. $4,507 ([$4,600 - ($4,600 * 2%)] = $4,507)
Sales Discount Dr. $93 ([$4,600 * 2%] = $92)
Accounts Receivable - Chester Company Cr. $4,600
Sales and receivables are entered at net of cash discounts:
June 3:
Accounts Receivable - Chester Company Dr. $4,508 ([$4,600 - ($4,600 * 2%)] = $4,508)
Sales Revenue Cr. $4,508
June 8:
Freight Expense Dr. $93
Accounts Payable - John Booth Transport Service Cr. $93
June 12:
Cash Dr. $4,415 ($4,508 - $93)
Accounts Receivable - Chester Company Cr. $4,508
Note: In both cases, the cash discount of 2% is applied to the amount of the sale when recording the receipt of payment on June 12.
learn more about selling price here
https://brainly.com/question/27796445
#SPJ11
Explain the following statement: ""Profits that more than cover the cost of capital are known as economic rents.""
The statement explains economic rent as a surplus of profit that is earned above and beyond what is required to produce the output. It is generated when there is a difference between the supply price and the market price of production.
Economic rent refers to the excess amount of revenue over and above the cost of capital. The cost of capital includes the expenses incurred while investing in equipment and machinery for the production process. In a company, the cost of capital is the minimum amount required to keep the business in operation.
Economic rent, on the other hand, is generated when the output is sold in the market at a higher price than the cost of production. In other words, it is the extra profit a company receives from its operations that can be used to make investments in new products and markets or can be paid out to shareholders as dividends.
Economic rents are often temporary and can be easily replaced by new competitors, which can lead to a decline in the profits of the original company that generated the economic rents.
Learn more about economic rents
https://brainly.com/question/32779601
#SPJ11
A Lessee insists on structuring a lease that will have the easier accounting result of an operating lease - that is, equal annual lease payments expensed as equal annual expenses. The equipment leased is an old Boeing 747. The Lessee is a Private Air Cargo company operating exclussively in the US. The Annual Lease Expense will be 10,000,000 The lease must be made at the beginning of each year. The lease term is four years. The lessor's implied rate is not known. As a result the lessee substitiutes its "incremental borrowing rate" for similar collateralized borrowings. The lessee's incremental borrowing rate is estimated to be 12%
Provide the lease expense schedule that is used to estimate the amortization of the right of use asset in an operating lease.
The lease expense schedule that is used to estimate the amortization of the right of use asset in an operating lease has an equal annual lease payment that is expensed as equal annual expenses.
In this scenario, the lessee insists on structuring a lease that will have the easier accounting result of an operating lease.The equipment leased is an old Boeing 747. The lessee is a private air cargo company operating exclusively in the US. The annual lease expense is 10,000,000. The lease must be made at the beginning of each year.
The lease term is four years. The lessor's implied rate is not known. As a result, the lessee substitutes its "incremental borrowing rate for similar collateralized borrowings. The lessee's incremental borrowing rate is estimated to be 12%.The total amount of lease payments is 10,000,000 for four years or 40,000,000.
To know more about expense visit:
https://brainly.com/question/29850561
#SPJ11
Traditionally, the word audit has been associated with accounts.
The dictionary meaning of the word audit is: "Verification of
records of financial transactions and inspecting them for being in
accord
The traditional association of the word "audit" with accounts is accurate. The dictionary meaning of the word "audit" refers to the verification and inspection of records of financial transactions to ensure they are in accordance with relevant laws, regulations, and standards.
When conducting an audit, professional auditors examine financial records, such as ledgers, financial statements, and supporting documentation, to assess their accuracy, completeness, and compliance with accounting principles. The purpose of an audit is to provide an independent and objective evaluation of the financial information presented by an organization.
During the audit process, auditors review the internal controls and procedures in place to safeguard assets and ensure the reliability of financial reporting. They may also perform substantive testing to gather evidence supporting the accuracy and validity of the financial statements. The ultimate goal of an audit is to express an opinion on the fairness and reliability of the financial statements.
While the traditional association of audit with accounts is common, it is worth noting that the concept of an audit can extend beyond financial matters. Audits can also be conducted in other areas, such as operational processes, compliance with regulations, environmental practices, and information technology systems. These audits focus on assessing the effectiveness, efficiency, and compliance of non-financial aspects of an organization.
However, in the context of the traditional association with accounts, an audit primarily involves the examination of financial records and transactions to ensure their accuracy, compliance, and adherence to accounting principles.
To learn more about audit, visit:
https://brainly.com/question/30436864
#SPJ11
The $10,000 face value Louisiana municipal bond has a coupon rate of 8 percent, with interest paid semi annually, and matures in 20 years. If the bond is expected to yield 5%. What is the bond's value today? a. $13,765,4 b. $8. 284.1 c. None of the listed items is correct. d. $12,7444 e. $523,806,5
Therefore, the correct answer is a. $13,765.4.The value of a bond is determined by discounting the future cash flows it is expected to generate.
In this case, the bond has a face value of $10,000, a coupon rate of 8 percent, and pays interest semiannually. It matures in 20 years and is expected to yield 5 percent.
To calculate the bond's value today, we need to calculate the present value of its future cash flows, which are the coupon payments and the face value. We can use the formula for the present value of a bond:
PV = C × (1 - (1 + r)^-n) / r + F / (1 + r)^n
Where:
PV = Present value of the bond
C = Coupon payment
r = Yield rate per period (semiannually in this case)
n = Number of periods (20 years = 40 semiannual periods)
F = Face value of the bond
Plugging in the values:
C = 8% of $10,000 / 2 = $400
r = 5% / 2 = 0.025
n = 40
F = $10,000
PV = $400 × (1 - (1 + 0.025)^-40) / 0.025 + $10,000 / (1 + 0.025)^40
Calculating the above expression, the bond's value today is approximately $13,765.4 (option a).
To know more about cash visit:
https://brainly.com/question/31754110
#SPJ11
The value of a bond is determined by the present value of its future cash flows, which include the coupon payments and the principal repayment at maturity.
To calculate the value of the Louisiana municipal bond, we need to use the present value formula.
Step 1: Calculate the coupon payment
The coupon payment is 8% of the face value ($10,000), and it is paid semi-annually. So, the coupon payment is ($10,000 x 8%)/2 = $400.
Step 2: Determine the number of coupon payments
Since the bond matures in 20 years and the coupon payments are made semi-annually, the total number of coupon payments will be 20 x 2 = 40.
Step 3: Determine the discount rate
The bond is expected to yield 5%. This is the discount rate that represents the required rate of return for investors.
Step 4: Calculate the present value of the coupon payments
We can use the present value of an ordinary annuity formula to calculate the present value of the coupon payments. The formula is:
PV = C x [1 - (1 + r)^(-n)] / r
Where:
PV is the present value of the coupon payments,
C is the coupon payment ($400),
r is the discount rate (5% or 0.05),
n is the number of coupon payments (40).
Using these values, we can calculate the present value of the coupon payments.
PV = $400 x [1 - (1 + 0.05)^(-40)] / 0.05 = $7,886.44
Step 5: Calculate the present value of the principal repayment
At maturity, the bondholder will receive the face value of $10,000. We need to discount this future value to its present value using the same discount rate of 5%.
PV = $10,000 / (1 + 0.05)^20 = $10,000 / 1.05^20 = $10,000 / 2.6533 = $3,772.54
Step 6: Calculate the total value of the bond today
The total value of the bond is the sum of the present value of the coupon payments and the present value of the principal repayment.
Total value = Present value of coupon payments + Present value of principal repayment
Total value = $7,886.44 + $3,772.54 = $11,658.98
So, the bond's value today is $11,658.98.
To know more about Principal Payment visit:
https://brainly.com/question/21172997
#SPJ11
For the following descriptica of data, identify Who and What were invesagated and the Population of interest. I dontify the Who for this stuby. A. The researchers who locked at the participants in the study B. The effect of burgers on waist size C. Number of burgers consumed per week D. The participans in the study who ate two ar more turgers a week E. All peoplet F. Ai 393 parteipants in the study
The population of interest in a study is the entire group of individuals who have a common characteristic or trait and are of interest to the researchers conducting the study.
This group can be quite broad, such as all people in the United States, or more narrowly defined, such as "all students enrolled in a particular school district. Here are the answers to the question at hand The researchers who looked at the participants in the study.
The answer to the question Who was investigated is the researchers who looked at the participants in the The effect of burgers on waist size The answer to the question What was investigated is the effect of burgers on waist size. Number of burgers consumed per week.
To know more about population visit:
https://brainly.com/question/15889243
#SPJ11
A new building tenant is leasing 2-stories in an existing 10-story building. What rating system would be appropriate for the project? A. LEED Building Design and Construction: Core and Shell B. LEED Building Design and Construction: New Construction C. LEED Operations and Maintenance: Existing Buildings D. LEED Interior Design and Construction: Commercial Interiors
The appropriate rating system for the project would be D) LEED Interior Design and Construction: Commercial Interiors. LEED (Leadership in Energy and Environmental Design) is a green building certification program that provides guidelines and standards for sustainable building design.
LEED (Leadership in Energy and Environmental Design) is a green building certification program that provides guidelines and standards for sustainable building design, construction, and operation. Each rating system within LEED is designed for specific types of projects.
In this case, the project involves leasing 2-stories in an existing 10-story building. Since the project focuses on the interior design and construction of the leased space rather than the entire building, the most suitable rating system would be LEED Interior Design and Construction: Commercial Interiors. This rating system specifically addresses the sustainability aspects of interior spaces, including energy efficiency, materials selection, indoor environmental quality, and water usage, among others.
The other options, LEED Building Design and Construction: Core and Shell, LEED Building Design and Construction: New Construction, and LEED Operations and Maintenance: Existing Buildings, are more applicable to projects involving the overall design and construction of the entire building or the ongoing operation and maintenance of existing buildings.
Hence, the correct option is D.
To learn more about LEED click here
https://brainly.com/question/32004666
#SPJ11
When using the spreadsheet (work sheet) in preparing the statement of cash flows by the indirect method, the Balance columns should total to
A. the totals shown on the balance sheets for their respective periods
B. the net increase in cash during the period
C. zero
D. none of these choices
When using the spreadsheet (worksheet) in preparing the statement of cash flows by the indirect method, the balance columns should total zero.
Therefore, option C is the correct answer. The indirect method is a common method used to prepare the statement of cash flows. It uses the changes in the balance sheet accounts to reconcile the net income in the income statement to the net cash flows from operating activities.
The statement of cash flows is prepared to disclose information about the inflow and outflow of cash and cash equivalents from a business operation over a given period. It includes cash flows from operating, investing, and financing activities. The preparation of the statement of cash flows using the indirect method involves the following steps:
Step 1: Start with the net income reported on the income statement for the period.
Step 2: Adjust the net income for any non-cash items, such as depreciation and amortization expenses, gains, or losses. These items are added back or subtracted from the net income to arrive at the operating cash flows.
Step 3: Adjust the operating cash flows for the changes in the balance sheet accounts. The changes in the current assets and liabilities are used to calculate the operating cash flows under the indirect method.
Step 4: Add or subtract the cash flows from investing and financing activities to arrive at the net increase or decrease in cash for the period. Finally, the change in cash for the period is added to the beginning balance of cash to arrive at the ending balance of cash. The balance columns in the spreadsheet should always total to zero, meaning the sum of the cash inflows and outflows is always equal.
learn more about income statement here
https://brainly.com/question/15169974
#SPJ11
If a 7 percent rise in the price of peanut butter causes total revenue to fall by 5 percent, then demand for peanut butter A. is elastic. B. is inelastic. C. is unit elastic. D. has a price elasticity
If a 7 percent rise in the price of peanut butter causes total revenue to fall by 5 percent, the demand for peanut butter is elastic.
The statement indicates that the percentage change in quantity demanded is greater than the percentage change in price, resulting in a decrease in total revenue. This indicates that demand for peanut butter is elastic. In elastic demand, a small change in price leads to a proportionally larger change in quantity demanded. In this case, a 7 percent increase in price caused a 5 percent decrease in total revenue, suggesting that consumers are responsive to changes in price and are willing to reduce their purchases significantly in response to the price increase.
To know more about percent,
https://brainly.com/question/33062252
#SPJ11
What is the value today of a money machine that will pay $4,219.00 every six months for 29.00 years? Assume the first payment is made 2.00 years from today and the interest rate is 9.00%. Round answer to 2 decimal places
The value of a money machine that will pay $4219 every six months for 29 years can be calculated using the present value of an annuity formula. The first payment will be made after 2 years, so we will need to discount the future cash flows to their present values at the time the first payment is made.
Using the present value of an annuity formula with semi-annual periods, we have:
[tex]PMT = $4219 / 2 = $2109.50 r = 9%[/tex] [tex]/ 2 = 4.5% ([/tex](interest rate per semi-annual period)
n = 29 x 2 = 58 (number of semi-annual periods)
[tex]PV = PMT x [(1 - (1 / (1 + r)^n)) / r] x (1 + r)PV = $2109.50 x [(1 - (1 / (1 + 0.045)^58)) / 0.045] x 1.045^2 PV = $76,138.45.[/tex]
Therefore, the value today of a money machine that will pay $4,219 every six months for 29 years, assuming the first payment is made after 2 years and the interest rate is 9%, is $76,138.45, rounded to 2 decimal places.
To know more about annuity visit:
https://brainly.com/question/32931568
#SPJ11
a. On Nov. 1, Tom Klear, the owner, invested $90,000 eash in the business in exchange for common stock b. On Nov. 15, Klear Copy Company purchased two photocopy machines for $15,000. The company paid $4,000 cash. The balance is due within 6 months (3) points) c. On Nov. 20, Klear Copy Company completed a $8,000 project for a client. $3,500 was received in cash immediately, and the balance is due within 20 days ( 3 . points). d. On Nov, 26, Klear Copy Company received a payment of $2,500 from the client with balances due from Nov. 20 . c. On Nov, 30, Klear Copy Company paid 5900 cash for this month's utility bill
Klear Copy Company had various financial transactions in November, including an owner investment, purchase of photocopy machines, project completion for a client, payment received from the client, and utility bill payment.
In November, Klear Copy Company's owner, Tom Klear, invested $90,000 in exchange for common stock, strengthening the company's capital. The company also purchased two photocopy machines for $15,000, paying $4,000 in cash with the remaining balance due within six months. Additionally, they completed an $8,000 project for a client, receiving $3,500 in cash upfront and expecting the remaining $4,500 within 20 days. On November 26, the company received a payment of $2,500 from the client. Towards the end of the month, they paid $900 in cash for the utility bill. These transactions impacted the company's assets, liabilities, owner's equity, and cash flow.
learn more about financial transactions here
https://brainly.com/question/29482749
#SPJ11
linda saved enough tip money from working at a restaurant to place $110,000.00 in a saving account generating 12.40% compounded monthly. she wants to collect a monthly income of $1,797 at the end of each month, for as long as the money lasts. approximately, how long will linda have this income coming to him? group of answer choices 6.41 years 8.12 years 7.14 years 8.36 years 7.38 years
Therefore, approximately, Linda will have this income coming to her for about 7.27 years. Among the given answer choices, the closest option is 7.38 years.
To determine approximately how long Linda will have the monthly income of $1,797 coming to her, we need to calculate the number of months it will take for her initial savings of $110,000 to be depleted.
We can use the formula for the future value of an ordinary annuity to calculate the time period. The formula is:
N = (ln(A/r)) / ln(1 + r)
Where:
N = Number of periods (in this case, the number of months)
A = Desired monthly income ($1,797)
r = Monthly interest rate (12.40% / 12)
Plugging in the values, we have:
N = (ln(1797/(110000 * 0.1240/12))) / ln(1 + 0.1240/12)
Calculating this expression, we find:
N ≈ 87.25 months
Since we are looking for the approximate number of years, we divide the number of months by 12:
N ≈ 87.25 / 12 ≈ 7.27 years
learn more about interest rate here:
https://brainly.com/question/30226854
#SPJ11
You belong to a group of local entrepreneurs that owns a 10-acre blueberry farm called Singing the Blues. You could farm the land yourselves or rent it out for $7,000 per year. Another option is to sell the land this year at its current market price of $80,000. The price of the land next year will be $78,000. If you sell it, your group has an investment opportunity from which you expect to make a return of 6 percent per year. What is the opportunity cost of using the land this year to grow blueberries?
The opportunity cost of using the land this year to grow blueberries is $4,800.Opportunity cost is the price of the next best alternative that one sacrifices while opting for another alternative.
Here, the local entrepreneurs have three alternatives to choose from, which are: farming the land themselves, renting it out, or selling the land. If the group decides to farm the land themselves, then the opportunity cost is the rent they could have earned by renting out the land.
If the group decides to rent out the land, then the opportunity cost is the interest they could have earned by selling the land or investing the sale proceeds. And if the group decides to sell the land, then the opportunity cost is the interest they could have earned by investing the sale proceeds.
Based on the problem statement, the market value of the 10-acre blueberry farm is $80,000 this year and will be $78,000 next year. If the group sells the land this year, they expect to earn a 6% return on their investment.
Therefore, the expected return from selling the land this year is 6% × $80,000 = $4,800. This $4,800 is the opportunity cost of using the land this year to grow blueberries. So, the opportunity cost of using the land this year to grow blueberries is $4,800.
To know more about Opportunity cost visit-
brainly.com/question/31580865
#SPJ11
tempest enterprises began operations on january 1, 20x1, with all of its activities conducted from a single facility. the company's accountant concluded that the year's building depreciation should be allocated as follows: selling activities, 30%; administrative activities, 35%; and manufacturing activities, 35%. if tempest sold 60% of 20x1 production during that year, what percentage of the depreciation would appear (either directly or indirectly) on the 20x1 income statement?
To determine the percentage of depreciation that would appear on the 20x1 income statement, we need to consider the percentage of depreciation allocated to each activity (selling, administrative, and manufacturing) and the percentage of production sold during that year.
According to the given information, the allocation of building depreciation is as follows:
- Selling activities: 30%
- Administrative activities: 35%
- Manufacturing activities: 35%
Since the question states that Tempest sold 60% of its 20x1 production during that year, it implies that 40% of the production remains unsold at the end of the year.
To calculate the percentage of depreciation that would appear on the 20x1 income statement, we need to consider the portion of depreciation allocated to the sold production and the unsold production.
For the sold production:
Depreciation allocated to selling activities: 30% of the total depreciation
Depreciation allocated to administrative activities: 35% of the total depreciation
Depreciation allocated to manufacturing activities: 35% of the total depreciation
For the unsold production:
Depreciation allocated to manufacturing activities: 35% of the total depreciation
Therefore, the percentage of depreciation that would appear on the 20x1 income statement is calculated as follows:
Percentage of depreciation on the income statement = (Depreciation allocated to sold production + Depreciation allocated to unsold production) / Total depreciation
= [(30% + 35% + 35%) ×60% + 35% ×40%] ÷100%
= [(100%) × 60% + 14%] ÷ 100%
= (60% + 14%) ÷ 100%
= 74% ÷ 100%
= 0.74
Therefore, 74% of the depreciation would appear on the 20x1 income statement.
learn more about manufacturing here :
https://brainly.com/question/29489393
#SPJ11
Hannah Division of Tide Inc has the following data for 2012: Assets available for use is 2,000,000; Hannah Divisions’ ROI is 25%; Hannah Divisions residual income is 200,000 and ROI of Tide Inc as a whole is 20%. What is the target rate of return for Tide Corp?
The target rate of return for Tide Corp can be calculated using the information provided. The target rate of return is 25%, which is the ROI of Hannah Division.
The target rate of return for Tide Corp can be determined by considering the ROI of the Hannah Division, as it represents a portion of the overall company's performance. In this case, the ROI of the Hannah Division is given as 25%. This means that the division generated a return on investment of 25% based on its assets available for use.
The target rate of return for Tide Corp is the minimum rate of return that the company as a whole aims to achieve. Since the Hannah Division is a part of Tide Corp, the target rate of return for Tide Corp would align with the ROI of the division. Therefore, the target rate of return for Tide Corp is also 25%.
Residual income is not used to determine the target rate of return for the company as a whole. It is a measure of the division's performance above or below the minimum required return. In this case, the Hannah Division's residual income is given as 200,000, which indicates that it generated a positive income above the required minimum return. However, it does not affect the calculation of the target rate of return for Tide Corp, which is solely based on the ROI of the division.
Learn more about return here: https://brainly.com/question/29730147
#SPJ11
given the following information, what is the revenue break-even point? revenue $1,000 (1,000 units sold) fixed costs $200 variable costs $750 group of answer choices $800 2,666 units 800 units $2,666
Break-even point is that point of sales where total cost and total revenue are equal to each other. It is the stage where there is no profit or no loss.
So, the revenue break-even point can be defined as the number of products that a company must sell to break-even (to cover its cost of production). Here, the revenue break-even point can be calculated by using the following formula: Revenue Break-even Point = Fixed Costs / (Revenue per unit - Variable Costs per unit).
Where, Fixed Costs = $200Revenue per unit = $1,000 / 1,000 units sold = $1Variable Costs per unit = $750 / 1,000 units sold = $0.75Substituting the values, Revenue Break-even Point = $200 / ($1 - $0.75) Revenue Break-even Point = $200 / $0.25Revenue Break-even Point = 800 units. Therefore, the revenue break-even point for the given information is 800 units.
To know more about revenue visit:
https://brainly.com/question/27325673
#SPJ11
Tobac Company reported an operating loss of \( \$ 142,000 \) for financial reporting and tax purposi for 2021 and all future years. Assume that Tobac operates in an industry for which NOL carryb carry
To b ac Company reported an operating loss of \( \ 142,000 \) for financial reporting and tax purposes for 2021 and all future years.
Assume that To b ac operates in an industry for which N O L carry backs and carry forwards are permitted. Please explain N O L and its effects on tax.The acronym N O L stands for "Net Operating Loss," which refers to a business's tax deductions that exceed its taxable income in a year.
The company's losses can be carried back or forward to other years to reduce taxable income, according to tax laws. A corporation with a net operating loss can use it to offset taxable income in previous or future years, lowering its tax bill. An N O L carry back involves applying the loss to previous years to seek a refund of taxes paid during those years.
To know more about operating visit:
https://brainly.com/question/30581198
#SPJ11
A consumer's demand for medical service is as follows:
Q = 70- Pp, where Pp is the out-of-pocket price that the consumer faces and Q is the quantity demanded at a particular out-of-pocket price. Say, the medical service has a list price of P₁ = $50.
What would the social loss under a full insurance plan?
The social loss under a full insurance plan can be calculated by comparing the quantity demanded at the out-of-pocket price with the quantity demanded at the list price. In this case, the list price (P₁) is $50.
To find the quantity demanded at the list price, we substitute Pp = P₁ into the demand function:
Q = 70 - Pp
Q = 70 - $50
Q = 20
So, at the list price of $50, the quantity demanded is 20.
Next, we compare this with the quantity demanded at the out-of-pocket price (Pp). Since the demand function is given as Q = 70 - Pp, we substitute Q = 20 and solve for Pp:
20 = 70 - Pp
Pp = 70 - 20
Pp = $50
Therefore, even under a full insurance plan where the consumer faces a lower out-of-pocket price, the quantity demanded remains the same as at the list price.
In conclusion, the social loss under a full insurance plan is zero since the quantity demanded does not change. This means that the insurance plan fully covers the cost for the consumer, resulting in no additional social loss.
Learn more about insurance here:
https://brainly.com/question/989103
#SPJ11
Rohlen Company reported the following balance sheet and income statement information:
Total assets, Dec. 31, 2022 $97,000
Total assets, Dec. 31, 2021 $85,000
Total liabilities, Dec. 31, 2022 $13,000
Total liabilities, Dec. 31, 2021 $10,000
Sales revenue, Dec. 31, 2022 $56,000
Sales revenue, Dec. 31, 2021 $51,000
Net income, Dec. 31, 2022 $22,000
Net Income, Dec. 31, 2021 $18,000
Using average total assets instead of liabilities, compute Rohlen’s Financial Leverage for the year ended December 31, 2022.
Average Total Assets can be computed as shown below:
Average Total Assets = (Total Assets, Dec. 31, 2022 + Total Assets, Dec. 31, 2021) ÷ 2
Therefore,
Average Total Assets = ($97,000 + $85,000) ÷ 2 = $91,000
The Financial Leverage for the year ended December 31, 2022 is computed as follows:
Financial Leverage = Average Total Assets ÷ Average Total Liabilities
Average Total Liabilities = (Total Liabilities, Dec. 31, 2022 + Total Liabilities, Dec. 31, 2021) ÷ 2
Therefore,
Average Total Liabilities = ($13,000 + $10,000) ÷ 2 = $11,500
Financial Leverage = $91,000 ÷ $11,500 = 7.91
The Financial Leverage for the year ended December 31, 2022 is 7.91.
This implies that the company has used a substantial amount of debt to finance its assets. This also suggests that the company is more likely to experience financial difficulties if there is an increase in interest rates,
which will lead to a rise in the cost of debt financing.
To know more about Average visit:
https://brainly.com/question/32201801
#SPJ11
