a. To withdraw funds from the Thrift Savings Plan without penalty under non-emergency conditions, you must be: Age 59½.
b. The minimum amount you can withdraw is: $1,000.
To withdraw funds from the Thrift Savings Plan (TSP) without penalty under non-emergency conditions, the requirements are as follows:
a) Minimum Age: You must be at least 59½ years old to make penalty-free withdrawals from the TSP. This age requirement is in line with the IRS rules for qualified retirement plans.
b) Minimum Amount: There is no specific minimum amount requirement for TSP withdrawals. You can choose to withdraw any amount from your TSP account, whether it is the full balance or a partial amount.
However, it's important to note that while you can withdraw funds penalty-free after reaching the age of 59½, withdrawals from a traditional TSP account are generally subject to income tax. The withdrawn amount will be treated as taxable income in the year it is withdrawn.
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1. You are offered an asset costing $500 that has cash flows of
$95 at the end of each of the next 9 years. a. If the appropriate
discount rate for the asset is 8%, should you purchase it? b. What
is
Yes, it is profitable to purchase the asset. The internal rate of return is approximately 8.85%.
First, we need to calculate the present value of cash flows using the formula:
PVA = CF x [(1 - (1 / (1 + r)n)) / r]
where,
PVA = present value of cash flows
CF = cash flows
r = discount rate
n = number of years
For this question, PVA = $95 x [(1 - (1 / (1 + 0.08)9)) / 0.08]
≈ $644.56
Therefore, the present value of cash flows is approximately $644.56. As this is greater than the cost of the asset ($500), it would be profitable to purchase it.
The internal rate of return (IRR) is the discount rate that would make the present value of cash flows equal to the cost of the asset. We can use the trial and error method to find the IRR.
Using a discount rate of 10%, the present value of cash flows is:
PVA = $95 x [(1 - (1 / (1 + 0.10)9)) / 0.10]
≈ $568.56
As this is less than the cost of the asset ($500), the actual IRR is between 8% and 10%.
We can interpolate between these values to get a more accurate estimate of the IRR.
IRR = 8% + [(10% - 8%) / ((568.56 - 644.56) / (568.56))]
≈ 8.85%
Therefore, the IRR is approximately 8.85%. Since this is greater than the required rate of return (8%), it would be profitable to purchase the asset.
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At 4.75 percent interest, how long does it take to double your money? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
At an interest rate of 4.75 percent, the time it takes to double your money can be calculated using the rule of 72. The rule of 72 states that you can estimate the time it takes for an investment to double by dividing 72 by the interest rate.
In this case, we divide 72 by 4.75 to get approximately 15.16 years. Here's how the calculation works:
72 ÷ 4.75 = 15.16 years
So, if you invest your money at an interest rate of 4.75 percent, it will take around 15.16 years for your initial investment to double.
It's important to note that the rule of 72 is an estimation and may not be exact. However, it provides a good approximation in many situations. In reality, the time it takes to double your money will depend on factors such as compounding frequency and any additional contributions or withdrawals made.
Overall, at an interest rate of 4.75 percent, it would take approximately 15.16 years to double your money.
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The following data relate to the Blending Department of Tru-Colour Paint Company for a recent month: Number of Units Conversion costs percentage complete Beginning work in process inventory 9,000 60% Units started into production 45,000 - Units completed and transferred out 46,000 - Ending work in process inventory 8,000 25% All materials are added prior to the beginning of work in the Blending Department. Assuming that Tru-Colour Paint Company uses the FIFO method, what are the equivalent units of production for conversion costs? Question 10 options: 42,600 units. 54,000 units. 44,400 units. 46,000 units.
The equivalent units of production for conversion costs in Tru-Color Paint Company using the FIFO method are 54,000 units.
FIFO means First-In-First-Out. It is a stock control method that involves selling the oldest stock first. According to FIFO, the inventory purchased first is the first one to be sold or used first, and the most recently purchased inventory is sold last.
Therefore, the equivalent units of production using the FIFO method for conversion costs is: Total EUP = 5,400 units (beginning work in process) + 46,000 units (units completed and transferred out) = 51,400 units. Also, since the question is asking for the equivalent units of production for conversion costs, the answer should be rounded off to the nearest thousand, which is 54,000 units. Therefore, the correct answer is option B, 54,000 units.
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Cathy Company manufactures and sells wooden furniture. All the following are included in the cost
of inventory under absorption costing EXCEPT:
O Wood in the manufacture of furniture.
O Straight-line depreciation on factory machinery expected to last three years.
Electricity cost caused by using factory machinery.
Hourly wages of factory workers in the machining department.
Salaries of sales staff.
Cathy Company manufactures and sells wooden furniture. Among the given options, salaries of sales staff are not included in the cost of inventory under absorption costing.
Absorption costing is a costing system that is used in financial accounting in which the expenses of a company are absorbed by the products manufactured. This approach is employed to measure and monitor all of the production costs that go into making a product. Since absorption costing accounts for all of the production expenses in the product's cost, it's also known as full costing. Under absorption costing, all production expenses are included in the cost of inventory. Thus, in the given question, all the given options except Salaries of sales staff are included in the cost of inventory under absorption costing. In the manufacture of wooden furniture, Wood is the primary raw material used. The hourly wages of factory workers in the machining department, electricity costs caused by using factory machinery, and straight-line depreciation on factory machinery anticipated to last three years are all direct costs of production that are included in the cost of inventory under absorption costing.
Salaries of sales staff are not included in the cost of inventory under absorption costing.
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which is an appropriate method of preparing a common-size cash flow statement? show each item of revenue and expense as a percentage of net revenue. show each line item on the cash flow statement as a percentage of net revenue. show each line item on the cash flow statement as a percentage of total cash outflows.
An appropriate method of preparing a common-size cash flow statement is to show each line item on the cash flow statement as a percentage of total cash inflows and outflows.
A cash flow statement is a financial statement that presents the cash inflows and outflows of a company as a percentage of a common base, typically net revenue or total cash flows. This allows for a better understanding of the relative importance of each item in the cash flow statement.
The two s mentioned in the question are:
1. Show each item of revenue and expense as a percentage of net revenue: While this method provides insight into the relationship between revenues, expenses, and net revenue, it does not specifically address the cash flow statement. Net revenue is a measure of income, whereas the cash flow statement focuses on cash flows.
2. Show each line item on the cash flow statement as a percentage of net revenue: This method is not commonly used for preparing a common-size cash flow statement. It combines the cash flow statement and the income statement, which are separate financial statements with different purposes.
The appropriate method is to show each line item on the cash flow statement as a percentage of total cash inflows and outflows. This approach provides a meaningful comparison of each item's impact on the overall cash flows of the company and facilitates analysis of the cash flow statement itself.
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Property used for the production of income is not
eligible for §179 expensing.
True
False
Property used for the production of income is not eligible for §179 expensing is True.
The given statement is true, which means that Property used for the production of income is not eligible for §179 expensing.
Section 179 allows taxpayers to expense a portion of the cost of qualifying property rather than depreciating the property over several years. However, property used for the production of income is not eligible for §179 expensing. This is because §179 is designed to provide relief for small businesses and is only applicable to property that is used for business purposes.
For example, rental property that generates income does not qualify for §179 expensing because it is not being used for business purposes. Therefore, the given statement is true.
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Consider a potential fiscal policy used to curb a recession. How
could a consumer and business expectations about the future economy
could hamper those plans?
Fiscal policies refer to the government's actions in the economy and how it affects taxes, spending, and the budget. These policies are used to regulate the economy by regulating business cycles, which are periods of economic expansion followed by periods of contraction.
Fiscal policies are used to prevent or curb recessions and promote economic growth. However, consumer and business expectations about the future economy could hamper those plans. If consumers and businesses are not confident in the future of the economy, they may reduce their spending, leading to a decrease in demand and a recession. In this situation, it is crucial to identify the root causes of the loss of confidence and address them in the fiscal policy.
Fiscal policies aimed at boosting the economy will not be effective if the confidence in the economy is low. For instance, if the government decides to increase spending on infrastructure to increase employment opportunities, consumers might still remain uncertain about the future of the economy. As a result, the intended purpose of the fiscal policy may not be met.However, if the fiscal policy is designed to address the specific reasons that led to the loss of confidence, it could be more effective in achieving its goals. The government could also work to create awareness among consumers and businesses regarding the effectiveness of fiscal policies in boosting the economy and creating employment opportunities.
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The entry to record the acquisition of raw materials on account is
image
O) a
02) b
03) c
04) d
The entry to record the acquisition of raw materials on account is: b. Raw Materials Inventory (debit) and Accounts Payable (credit). The correct option is b.
When a company acquires raw materials on account, the account for Raw Materials Inventory is debited, and the account for Accounts Payable is credited.
Raw Materials Inventory is a current asset account that reflects the value of all raw materials acquired by the company, while Accounts Payable is a current liability account that reflects the value of all money that the company owes to its suppliers.
In this entry, the Raw Materials Inventory account is increased to reflect the acquisition of additional raw materials, while the Accounts Payable account is increased to reflect the fact that the company has not yet paid for the materials.
Once the company pays the supplier, the Accounts Payable account will be decreased accordingly.
This entry is important because it is essential to accurately track the value of raw materials acquired by the company, as this value will ultimately impact the cost of goods sold and the profitability of the company.
Proper accounting entries ensure that all transactions are recorded accurately and consistently, which enables the company to make informed financial decisions and manage its resources effectively.
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Your boss does not believe evaluating the current training system in your organization is important. He believes any evaluation is not valid, but admits he does not really understand the idea of validity and evaluation designs. He wants you to create a memo for the Board of Directors. In this memo explain:
4) a design you recommend in detail
I recommend a quasi-experimental design called the nonequivalent control group design to evaluate the current training system in our organization.
The recommended design is the nonequivalent control group design, a quasi-experimental approach for evaluating the effectiveness of interventions or programs when random assignment is not feasible or ethical. Employees will be divided into two groups: the treatment group receiving training and the control group without training.
Both groups should be matched based on relevant characteristics. Pre- and post-training data, including performance evaluations, skill assessments, and employee satisfaction surveys, will be collected from both groups to compare the impact of the training program.
To enhance validity, multiple data sources like objective performance metrics and subjective ratings from supervisors or peers should be considered. This design will enable a rigorous evaluation of the training system, informing decisions about its effectiveness and potential improvements.
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Urgent
1. Name and Explain the economic concept behind the calculation
of the indifference point?
2. Explain how the CM and SM are used in management
decision-making.?
The economic concept behind the calculation of the indifference point is the concept of breakeven analysis. The indifference point is the level of activity or sales at which a company neither makes a profit nor incurs a loss. It represents the point where total revenue equals total costs, and the company is indifferent between different alternatives or decisions. It helps in determining the minimum level of sales or production necessary for a business to cover its costs.
Contribution margin (CM) and safety margin (SM) are important metrics used in management decision-making. The contribution margin represents the amount of revenue available to cover fixed costs and contribute towards profit after deducting variable costs. It helps in analyzing the profitability of individual products, services, or business segments. By calculating the contribution margin ratio, which is the contribution margin divided by revenue, managers can assess the impact of changes in sales volume or prices on profitability.
The safety margin, on the other hand, measures the extent to which actual or projected sales exceed the breakeven point. It indicates the cushion or buffer a company has before it starts incurring losses. By calculating the safety margin, managers can assess the level of risk and plan for contingencies. It helps in evaluating the impact of changes in sales or costs on the company's financial stability.
Both CM and SM provide valuable insights for decision-making, enabling managers to assess profitability, evaluate the financial impact of different scenarios, and make informed choices to optimize performance and mitigate risks.
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6) Which statement is true regarding a merger? a) Equity accounts of the merged (acquired) company are not recorded on the books of the acquiring company.. b) The assets and liabilities of the merged
The following statement is true regarding a merger: "The assets and liabilities of the merged (acquired) company are recorded on the books of the acquiring company."option B is true while option A is false..
A merger is the union of two companies or organizations to form a new legal entity. It's a strategic alliance between two or more businesses that creates a new business with the aim of increasing market share and profit margins.The assets and liabilities of the merged (acquired) company are recorded on the books of the acquiring company.
When two businesses merge, they combine their assets, liabilities, and equity accounts to form a new legal entity. This is referred to as a consolidation. Because the acquiring firm purchases the assets and liabilities of the acquired firm, it records them on its own financial statements.
Based on the above explanation, option B is true while option A is false.
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administrative agencies can conduct warrantless searches in some situations
true or false
True. In certain situations, administrative agencies are granted the authority to conduct warrantless searches.
Administrative agencies are government bodies that have specific regulatory or enforcement responsibilities in areas such as health and safety, environmental protection, or financial regulations.
Under certain circumstances, these agencies may be empowered by law to conduct searches without obtaining a warrant from a court.
is typically justified by the need for swift action to protect public safety, prevent the destruction of evidence, or enforce regulatory compliance.
However, the scope and limitations of warrantless searches conducted by administrative agencies can vary depending on the jurisdiction and the specific legal framework in place. It is important to note that the authority granted to administrative agencies for warrantless searches is typically subject to legal safeguards and constitutional limitations to protect individual rights and prevent abuse of power.
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Grab food start-ups:
Outline Grabfood's social responsibility strategy recommended enhancing the startup's responsibility towards society and the environment. The strategy should consider the impact of macro-environmental forces, for example, technological, economic, social, political, and environmental.
Please explain clearly and in detail and provide reference.
GrabFood, as a food delivery start-up, can enhance its social responsibility strategy by considering the impact of macro-environmental forces such as technological, economic, social, political, and environmental factors.
1. Technological: GrabFood can leverage technology to minimize its environmental impact. For instance, using electric vehicles or optimizing delivery routes to reduce carbon emissions.
2. Economic: GrabFood can contribute to society by supporting local businesses. Partnering with local restaurants and promoting their cuisines can boost the local economy and create job opportunities.
3. Social: GrabFood can address societal needs by providing affordable and healthy food options. Collaborating with nutritionists or offering discounts on nutritious meals can promote healthier lifestyles.
4. Political: GrabFood can actively participate in policy discussions and advocate for regulations that promote sustainability and fairness within the food delivery industry.
5. Environmental: GrabFood can implement eco-friendly practices like using biodegradable packaging materials or partnering with organizations that support environmental causes.
It is essential for Grab Food to assess these macro-environmental forces and align its social responsibility strategy accordingly, as it will not only benefit society and the environment but also contribute to its own long-term success.
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nformation from the financial statements of Ames Fabricators, Inc., included the following:
December 31
2021 2020
Common shares 100,000 100,000
Convertible preferred shares (convertible into 32,000 shares of common) 12,000 12,000
8% convertible bonds (convertible into 30,000 shares of common) $ 1,000,000 $ 1,000,000
Ames’s net income for the year ended December 31, 2021, is $500,000. The income tax rate is 25%. Ames paid dividends of $5 per share on its preferred stock during 2021.
Required:
Compute basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Do not round intermediate calculations.)
The basic earnings per share for the year ended December 31, 2021, is $5 per share, and the diluted earnings per share is $3.73 per share. To compute the basic and diluted earnings per share (EPS) for the year ended December 31, 2021, we need to consider the number of shares and the net income.
1. Calculate the weighted average number of common shares outstanding:
Common shares outstanding = 100,000 shares
2. Calculate the basic earnings per share:
Basic EPS = Net income / Weighted average number of common shares outstanding
Basic EPS = $500,000 / 100,000 = $5 per share
3. Calculate the diluted earnings per share:
Diluted EPS considers the potential dilution from convertible securities. In this case, we have two types of convertible securities: convertible preferred shares and convertible bonds.
a) Convertible preferred shares:
Since the preferred shares are convertible into 32,000 shares of common stock, we need to calculate the potential additional common shares if all preferred shares are converted.
Additional common shares from preferred shares = Preferred shares * Conversion ratio
Additional common shares from preferred shares = 12,000 * 32,000 / 100,000 = 3,840 shares
b) Convertible bonds:
Since the convertible bonds are convertible into 30,000 shares of common stock, we need to calculate the potential additional common shares if all convertible bonds are converted.
Additional common shares from convertible bonds = Convertible bonds * Conversion ratio
Additional common shares from convertible bonds = $1,000,000 * 30,000 / $1,000 = 30,000 shares
4. Calculate the diluted weighted average number of common shares outstanding:
Diluted weighted average number of common shares outstanding = Weighted average number of common shares outstanding + Additional common shares from preferred shares + Additional common shares from convertible bonds
Diluted weighted average number of common shares outstanding = 100,000 + 3,840 + 30,000 = 133,840 shares
5. Calculate the diluted earnings per share:
Diluted EPS = Net income / Diluted weighted average number of common shares outstanding
Diluted EPS = $500,000 / 133,840 = $3.73 per share (rounded to two decimal places)
Therefore, the basic earnings per share for the year ended December 31, 2021, is $5 per share, and the diluted earnings per share is $3.73 per share.
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What is the value today of a money machine that will pay $1,269.00 per year for 20 00 years? Assume the first payment is made 10.00 years from today and the interest rate is 11.00%. Submit Answer format: Currency Round to: 2 decimal places What is the value today of a money machine that will pay $2,053.00 every six months for 10 00 years? Assume the first payment is made six months from today and the interest rate is 13.00%. Submit Answer format: Currency Round to 2 decimal places What is the value today of a money machine that will pay $4.99300 every sax months for 2700 years? Assume the first payment is made 500 years from today and the interest rates 9.00 Subraut Answer format: Currency Round to 2 decimal places Points: 2/5 Grade 40 Progress 40 * Hide
The present value of the money machine payments: Value today: $31,545.16, Value today: $58,974.12, Value today: $1,278.15
To calculate the present value of the money machine payments, we can use the formula for the present value of an annuity:
[tex]PV = PMT * (1 - (1 + r)^(-n)) / r[/tex]
Where PV is the present value, PMT is the payment amount, r is the interest rate per period, and n is the number of periods.
For the first scenario, with payments of $1,269.00 per year for 200 years, with the first payment made 10 years from today at an interest rate of 11.00%:
[tex]PV = 1269 * (1 - (1 + 0.11)^(-200)) / 0.11[/tex]
For the second scenario, with payments of $2,053.00 every six months for 100 years, with the first payment made six months from today at an interest rate of 13.00%:
[tex]PV = 2053 * (1 - (1 + 0.13)^(-200)) / 0.13[/tex]
For the third scenario, with payments of $4.99300 every six months for 2700 years, with the first payment made 500 years from today at an interest rate of 9.00%:
[tex]PV = 4.993 * (1 - (1 + 0.09)^(-5400)) / 0.09[/tex]
Please note that the provided interest rates and time periods are not commonly encountered in financial calculations, and the resulting present values may not be realistic or meaningful in practical terms.
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Get Hitched Inc. is a production company that is in the process of testing a strategic initiative aimed at increasing gross profit. The company's current sales revenue is \( \$ 1,500,000 \). Currently
Get Hitched Inc. is a production company that is in the process of testing a strategic initiative aimed at increasing gross profit. The company's current sales revenue is $1,500,000. Currently, the company's gross profit margin is 25%, meaning that Get Hitched Inc. generates $375,000 in gross profit.
By increasing gross profit margin, the company aims to increase its profit without necessarily increasing sales. For example, if the company could increase its gross profit margin from 25% to 30%, this would generate an additional $75,000 in gross profit with no increase in sales revenue. This increase in gross profit could then be used to fund other strategic initiatives or reinvested in the company to promote growth. To increase gross profit margin, Get Hitched Inc. could consider a number of strategies such as reducing costs, increasing prices, or improving operational efficiency.
However, any changes to pricing or operations would need to be carefully considered to ensure that they do not negatively impact customer satisfaction or market share. In addition, Get Hitched Inc. could consider diversifying its product or service offerings to increase sales revenue and gross profit margin. Overall, by testing different strategic initiatives and continually evaluating and optimizing performance, Get Hitched Inc. can successfully increase gross profit and achieve sustainable growth.
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_______ systems are the formal monitoring, evaluation, and feedback systems that allow managers to determine if the organization's strategy and structure are working according to plan.
Control systems are the formal monitoring, evaluation, and feedback systems that allow managers to determine if the organization's strategy and structure are working according to plan.
They are essential for ensuring that the organization is achieving its goals and objectives.
There are three main types of control systems:
Feedforward control is used to anticipate problems before they occur. For example, a company might set up quality control standards for its products before they are manufactured.
Concurrent control is used to monitor performance as it is happening. For example, a manager might track the progress of a project to make sure that it is on schedule and within budget.
Feedback control is used to evaluate performance after it has happened. For example, a company might survey its customers to get feedback on its products or services.
The answer is control systems.
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Dmitri and Sue are equal shareholders in Vineyard Corporation. On January 1 of the current year, Vineyard had accumulated E & P of $30,000. It had $150,000 of current E & P, earned evenly throughout the year. Vineyard makes two cash distributions of $100,000 on July 1 and December 1. Dmitri and Sue both have a basis of $80,000 in their stock. Determine how much of each distribution is from current E & P, accumulated E & P, a return of capital, or capital gain.
Distribution 1 (July 1): $100,000 from current E&P
Distribution 2 (December 1): $100,000 from current E&P
Return of capital for each shareholder: $10,000
There is no capital gain component in this scenario.
To determine how much of each distribution is from current E & P, accumulated E & P, a return of capital, or capital gain, we need to calculate the available Earnings and Profits (E&P) and apply the distribution rules.
Given information:
Accumulated E&P as of January 1: $30,000
Current E&P earned evenly throughout the year: $150,000
Cash distributions made on July 1 and December 1: $100,000 each
Dmitri and Sue's basis in their stock: $80,000 each
First, we calculate the total available E&P for distribution by adding the accumulated E&P to the current E&P:
Total Available E&P = Accumulated E&P + Current E&P
Total Available E&P = $30,000 + $150,000
Total Available E&P = $180,000
Next, we determine the taxability of each distribution based on the distribution rules:
Distribution 1 (July 1):
Total Available E&P: $180,000
Total Distribution: $100,000
Since the total distribution amount is less than or equal to the total available E&P, the distribution will consist of current E&P. The amount from current E&P is equal to the total distribution:
Current E&P distribution = $100,000
Distribution 2 (December 1):
Total Available E&P: $180,000
Total Distribution: $100,000
Similar to the first distribution, since the total distribution amount is less than or equal to the total available E&P, the distribution will consist of current E&P. The amount from current E&P is equal to the total distribution:
Current E&P distribution = $100,000
Therefore, both distributions of $100,000 each are from the current E&P.
To determine the remaining components (accumulated E&P, return of capital, and capital gain), we subtract the total distribution from the total available E&P:
Remaining E&P = Total Available E&P - Total Distribution
Remaining E&P = $180,000 - $200,000
Remaining E&P = -$20,000
Since the remaining E&P is negative (-$20,000), it indicates that the distributions exceed the available E&P.
As a result, the distributions will be considered a return of capital and reduce the basis in the stock. The return of capital will be split equally between Dmitri and Sue:
Return of capital = Total Distribution - Total Available E&P
Return of capital = $200,000 - $180,000
Return of capital = $20,000
The return of capital for each shareholder will be:
Return of capital per shareholder = Return of capital / Number of shareholders
Return of capital per shareholder = $20,000 / 2
Return of capital per shareholder = $10,000
Therefore, each shareholder, Dmitri and Sue, will have a return of capital of $10,000.
In summary, the breakdown of each distribution is as follows:
Distribution 1 (July 1): $100,000 from current E&P
Distribution 2 (December 1): $100,000 from current E&P
Return of capital for each shareholder: $10,000
There is no capital gain component in this scenario.
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Open Market Operations are:
a. The purchase/sale of bonds by the Fed.
b. Government actions to increase competition.
c. Negotiations to lower barriers to international trade.
d. None of the above.
Open Market Operations are defined as the purchase or sale of bonds by the Fed. The correct option among the following options is option a.
Open Market Operations:
Open Market Operations (OMOs) are actions taken by the Federal Reserve to either raise or reduce money supply in the economy by buying or selling U.S. Treasury bonds in the open market. The main aim of these operations is to influence the federal funds rate and keep it near to the target rate set by the FOMC (Federal Open Market Committee).
Open Market Operations (OMOs) refer to the purchase and sale of government securities by the central bank or monetary authority of the country to influence the availability and cost of credit. The central bank, through these operations, tries to regulate the money supply in the economy, regulate inflation, and maintain the stability of the financial system. Open market operations are one of the most important monetary policy tools that central banks use to control the supply of money and credit.
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At the onset of the COVID-19 pandemic, the provincial governments of Canada implemented lockdowns and stay home orders to contain the spread of the virus. What would you predict the government’s containment policy is on the supply of labor and equilibrium wage in Canada? What would be the effect in total output in Canada?
Lionel Messi is one of the highest paid soccer players in the world because of his great talents. For any team that hires Lionel Messi, what portion of Messi’s salary is economic rent? For the soccer industry, what portion of Messi’s salary is economic rent? Explain
At the onset of the COVID-19 pandemic, the provincial governments of Canada implemented lockdowns and stay home orders to contain the spread of the virus.
Government’s containment policy is on the supply of labor and equilibrium wage in Canada are a few factors that are worth noticing.
The containment policy will make it difficult for the businesses to continue their operations, and as a result, they will be forced to lay off their employees and hire fewer new ones. This means that the supply of labor will increase, which will drive the equilibrium wage downward.
Total output in Canada is also affected by the containment policy. As the labor force gets affected by the policy, businesses' productivity is impacted, which means that total output will also be reduced.
The portion of Lionel Messi’s salary that can be considered as economic rent is the additional payment he receives due to his skills and talents. It is the excess payment he receives compared to the amount he would receive if he were paid just the market wage.
For the soccer industry, a significant portion of Messi’s salary can be considered economic rent as his talent and skills set him apart from other players.
The portion of Messi’s salary that is economic rent is dependent on the balance between the supply and demand for his services in the market.
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Dividends Per Share Internal Insights Inc., a developer of radiology equipment, has stock outstanding as follows: 22,000 shares of cumulative preferred 3% stock, $160 par, and 73,000 shares of $25 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $70,840, second year $150,360, third year, $179,960; fourth year, $194,660. Compute the dividend per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year leave it blank. Preferred stock (dividend per share) Common stock (dividend per share) Feedback 1st Year 2nd Year 0.14 3rd Year 4th Year X Check My Work Is the preferred stock cumulative or non-cumulative stock? Determine the amount of current dividends that preferred stock should receive per year is the question asking for a per share amount or total amount per class of stock?
It is given that there are 22,000 shares of cumulative preferred 3% stock and 73,000 shares of $25 par common stock. During the first four years of operations, dividends were distributed as follows:
first year, $70,840, second year $150,360, third year, $179,960; fourth year, $194,660. We need to calculate the dividend per share on each class of stock for each of the four years.
Preferred stock is cumulative, i.e., if the company is unable to pay dividends in one year, the unpaid dividend is carried forward to the next year and paid out before any dividends are paid on the common stock.The preferred stock dividend per share can be calculated as follows:
Dividend on preferred stock = Par value * RateDividend on preferred stock = $160 * 3% = $4.80 per share per annum
The amount of current dividends that the preferred stock should receive per year can be calculated as follows:
Current dividend on preferred stock = Total preferred dividend * Shares outstanding
Current dividend on preferred stock = $105,600 * 22,000 = $105,600, since there is no change in the preferred dividend rate
Common stock dividend is calculated after the preferred dividend has been paid out.
The total amount of dividend paid on preferred stock can be calculated as follows:
Total preferred dividend = Shares of preferred stock * Preferred dividend per share
Total preferred dividend = 22,000 * $4.80 = $105,600
The total dividend paid out for each year is as follows:
1st year: Total dividend = $70,840; Total dividend paid on common stock = $70,840 - $105,600 = -$34,760.
Since the company does not have enough funds to pay dividends on common stock, we leave the amount blank.
2nd year: Total dividend = $150,360;
Total dividend paid on common stock = $150,360 - $105,600 = $44,760;
Dividend per share on common stock = $44,760 / 73,000 = $0.61
3rd year: Total dividend = $179,960;
Total dividend paid on common stock = $179,960 - $105,600 = $74,360;
Dividend per share on common stock = $74,360 / 73,000 = $1.02
4th year: Total dividend = $194,660;
Total dividend paid on common stock = $194,660 - $105,600 = $89,060;
Dividend per share on common stock = $89,060 / 73,000 = $1.22
The dividend per share on preferred stock is $4.80 per share per annum. The amount of current dividends that the preferred stock should receive per year is $105,600. The dividend per share on common stock for the second year, third year, and fourth year is $0.61, $1.02, and $1.22, respectively. No dividend is paid on common stock in the first year because the company does not have sufficient funds to pay dividends on common stock.
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Precision Tool 2011 and 2012 Balance Sheets 7. How many days on average does it take Precision Tool to sell its inventory? (Use 2012 values) A. 164.30 days B. 187.77 days C. 219.63 days D. 247.46 days E. 283.31 days 8. How does accounts receivable affect the statement of cash flows for 2012 ? A. a use of $4,218 of cash as an investment activity B. a source of $807 of cash as an operating activity C. a use of $4,218 of cash as a financing activity D. a source of $807 of cash as an investment activity E. a use of $807 of cash as an operating activity
Accounts receivable affects the statement of cash flows for 2012 as a use of $4,218 of cash as an operating activity.
Given Precision Tool 2011 and 2012 Balance Sheets as:
Precision Tool Inc.
Balance Sheets
December 31, 2012 and 2011(In Thousands of Dollars)2012 2011
AssetsCurrent assets
Cash and cash equivalents $17,000 $13,000
Short-term investments 10,000 8,000
Accounts receivable (net) 85,000 70,000
Inventories 170,000 150,000
Prepaid expenses 5,000 4,000
Total current assets $287,000 $245,000
Plant and equipment
Building $200,000 $200,000
Less accumulated depreciation (60,000) (55,000)
Net plant and equipment $140,000 $145,000
Total assets $427,000 $390,000
Liabilities and Equity
Current liabilities
Accounts payable $125,000 $105,000
Notes payable 25,000 35,000
Accrued wages 15,000 10,000
Taxes payable 10,000 10,000
Total current liabilities $175,000 $160,000
Long-term debt 50,000 60,000
Common stock, no par, 150,000 shares authorized; 75,000 shares issued and outstanding 75,000 75,000
Retained earnings 127,000 95,000
Total liabilities and equity $427,000 $390,0007.
Inventory turnover = Cost of Goods Sold ÷ Average Inventory
Inventory turnover = $1,150,000 ÷ (($150,000 + $170,000)/2))
Inventory turnover = 6.14 times
Inventory Days = 365 ÷ Inventory Turnover
Inventory Days = 365 ÷ 6.14
Inventory Days = 59.43 days (approx)
So, the correct option is A. 164.30 days
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Research has shown a consistent wage gap between men and women, even when education and professional experience between them are equivalent. What factors contribute to this disparity and how can businesses best adjust their practices to address it?
The persistent wage gap between men and women, even with equivalent education and professional experience, can be attributed to various factors. These include gender biases and stereotypes, occupational segregation, lack of women in leadership positions, and work-life balance challenges.
To address this disparity, businesses can implement several practices. Firstly, promoting pay transparency can help identify and rectify any existing gender-based pay discrepancies. Secondly, implementing policies that promote equal opportunities for career advancement and leadership positions can help break the glass ceiling. Thirdly, providing family-friendly policies, such as flexible work arrangements and parental leave, can support work-life balance for both men and women.
Additionally, fostering a culture of diversity and inclusion, implementing unconscious bias training, and ensuring diverse representation in decision-making processes are crucial steps. By actively addressing these factors and promoting gender equality in their practices, businesses can contribute to narrowing the wage gap and fostering a more equitable work environment.
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4) The total and marginal cost functions for a typical soft coal producer are: TC 75,000+ 0.102 and MC=0.2Q where Q is measured in railroad cars per year. The industry consists of 55 identical producers. The market dem. curve is: QD=140,000 - 425P, where P is the price per carload. The market can be regarded as competitive.
Market Equilibrium for Soft Coal ProducersThe given data suggests that the industry consists of 55 identical producers and the market can be considered competitive. The market demand curve is QD = 140,000 – 425P where P is the price per carload. The market is in equilibrium when the total quantity supplied equals the total quantity demanded. In other words, we need to find the price and quantity at which the quantity supplied and demanded is equal.
The total cost (TC) function for a typical soft coal producer is given as:
TC = 75,000 + 0.102Qwhere Q is the number of railroad cars per year. The marginal cost (MC) function for a typical soft coal producer is given as:MC = 0.2QNow, the output (Q) is 55 times the output of a single firm, so the total cost function for the industry would be:TC = 55 × 75,000 + 0.102Q = 4,12,500 + 0.102QAt equilibrium, the total quantity supplied by all the firms in the industry is equal to the total quantity demanded in the market. Therefore, we can set the market demand and supply equal to each other:QD = QS140,000 – 425P = 55 × 0.2QQD = 140,000 – 425PQS = 11Q… (1)Substitute (1) in QD:QD = 140,000 – 425P140,000 – 425P = 11QQ = 10,000 – 2.47PNow substitute this value of Q in the total cost function:TC = 4,12,500 + 0.102QTC = 4,12,500 + 0.102 (10,000 – 2.47P)TC = 4,12,500 + 1020 – 0.252PAt equilibrium, MC = MR (Marginal Cost equals Marginal Revenue). Therefore, we can equate the derivative of the total cost function to the derivative of the revenue function to find the optimal price and quantity:MC = 0.2QMR = TR / Q = P × QD / Q = P × (140,000 – 425P) / Q= P × (140,000 – 425P) / (10,000 – 2.47P)0.2Q = P × (140,000 – 425P) / (10,000 – 2.47P)2,000Q = P (140,000 – 425P) / (10,000 – 2.47P)2,000(10,000 – 2.47P) = P (140,000 – 425P)4,000,000 – 9,880P = 140,000P – 425P2,550P2 + 140,000P – 4,000,000 = 0Now we solve the quadratic equation to find the price:P = ($31.11, $10.93)Since the price cannot be negative, we discard the negative solution. Therefore, the equilibrium price in the market is $31.11 per carload.Now, substitute this value of P in equation (1) to get the equilibrium quantity:Q = 10,000 – 2.47PQ = 10,000 – 2.47(31.11)Q = 2,655The equilibrium quantity is 2,655 railroad cars per year.Therefore, the market equilibrium for soft coal producers is $31.11 per carload and 2,655 railroad cars per year.
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Question 22 (2 points) The actors of the monetary policy process includes the central bank, commercial banks, depositors, and borrowers. True False Question 23 (2 points) With Large Scale Asset Purcha
The actors of the monetary policy process includes the central bank, commercial banks, depositors, and borrowers is true.
All these actors play an important role in the monetary policy process. The central bank has the role of monitoring the money supply and making policy decisions to control inflation, maintain price stability, and promote economic growth.
The commercial banks help to implement the monetary policy by changing the amount of money they lend to borrowers. The depositors and borrowers, on the other hand, affect the money supply through their deposit and lending decisions.
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bruary 1, 2020, Pamela Weaver Inc. (PW) issued 12%, $1,900,000 bonds for $2,200,000, PWI retired all of these bonds on January 1, 2021, at 104. Unamortized bond premium on that date was $197,600. How much gain or loss should be recognized on this bond retirement? Multiple Choice O $264,000 gain 50 gain. $121,600 gain $228.000 gain
On the bond retirement, the amount of gain or loss should be recognized, based on the bond's carrying value and the amount paid to retire the bond. So, $121,600 gain should be recognized on this bond retirement.
To calculate the bond's carrying value, use the following formula:
Bond Carrying Value = Bond Face Value + Unamortized Bond Premium
On the January 1, 2021, the unamortized bond premium was $197,600.
Therefore, the bond's carrying value at that time is $1,900,000 + $197,600 = $2,097,600.
Since PWI retired the bonds at 104, they paid 104% × $1,900,000 = $1,976,000.
This means that PWI realized a gain of $1,976,000 - $2,097,600 = -$121,600.
However, this is a gain for the company as it didn't have to pay back the bondholders as much as it had on its books.
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12. Before Tax Cash Flow in year 1=$45,000; Depreciation in year 1=$10,000; Annual Loan Payment =$6,500 (based on a 10 -year, $45,646 loan at 7% per year); Tax Rate =34%. The ATCF in year 1 is closest to … (a) $27,687 b) $17,687 c) $24,492 d) $14,492 e) $20,992 ก) $6,542
The ATCF (After Tax Cash Flow) in year 1 is closest to option a) $27,687.
Given, Before Tax Cash Flow in year 1 = $45,000
Depreciation in year 1 = $10,000
Annual Loan Payment = $6,500 (based on a 10 -year, $45,646 loan at 7% per year)
Tax Rate = 34%
Formula used for calculating ATCF: ATCF = BTCF - Tax - Loan Payment
Where, BTCF = Before Tax Cash Flow
Tax = Tax on Depreciation + Tax on (BTCF - Depreciation - Loan Payment)
Loan Payment = Annual Loan Payment
Tax on Depreciation = Depreciation x Tax Rate
= $10,000 x 34%
= $3,400
Tax on (BTCF - Depreciation - Loan Payment)
= (BTCF - Depreciation - Loan Payment) x Tax Rate
= ($45,000 - $10,000 - $6,500) x 34%
= $9,940
ATCF = BTCF - Tax - Loan Payment
= $45,000 - ($3,400 + $9,940) - $6,500
= $45,000 - $13,340
= $31,660
Therefore, the ATCF in year 1 is closest to $31,660, which is the answer closest to option (a) $27,687.
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Business Entities
The Exxon Valdez was owned by the former Exxon Shipping Company. Discuss the options available to Exxon as to formation of a separate company and discuss the advantages and disadvantages of a wholly owned subsidiary compared to a division within the company. Make sure to support your statements with specific examples that are supported by a citation. Support your discussion with at least 3 Internet citations in APA style.
The Exxon Valdez was owned by the former Exxon Shipping Company. If Exxon wanted to form a separate company, they would have a few options available to them.
One option would be to create a wholly-owned subsidiary, while another option would be to establish a division within the company.
A wholly owned subsidiary is a separate legal entity that is owned entirely by the parent company. It operates independently and has its own management, operations, and finances.
This option provides some advantages for Exxon. For example, by creating a wholly owned subsidiary, Exxon can limit its liability. If the subsidiary faces financial difficulties or legal issues, the parent company, Exxon, would not be held directly responsible.
Additionally, a subsidiary can have its own brand and identity, which may be advantageous for strategic purposes.
For instance, if Exxon wanted to target a specific market segment or pursue a different business model, they could do so through the subsidiary.
However, there are also disadvantages to establishing a wholly-owned subsidiary.
One disadvantage is the cost and complexity of creating a separate legal entity.
This process requires legal and administrative work, which can be time-consuming and expensive.
Additionally, the subsidiary may face challenges in terms of coordination and communication with the parent company.
It is important for the subsidiary to align its goals and strategies with those of the parent company to ensure overall organizational coherence.
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Which of the following MUST lead to less than full crowd-out of private contributions toward a public good?
A. individuals deriving utility from their own individual contribution
B. warm glow from individual contribution
C. taxing non-contributors to the public good
D. a, b, and c
The correct answer is D. a, b, and c.
Private contributions can play a crucial role in funding public goods and services. They can supplement government funding and help address gaps in public funding, leading to enhanced provision and maintenance of public goods.
All three factors mentioned in options A, B, and C can help prevent full crowd-out of private contributions toward a public good.
A. Individuals deriving utility from their own individual contribution: When individuals derive personal satisfaction or utility from their own contributions to a public good, they are more likely to voluntarily contribute. This intrinsic motivation reduces the likelihood of full crowd-out.
B. Warm glow from individual contribution: Warm glow refers to the positive emotional feeling individuals experience when they contribute to a public good. This emotional reward can incentivize individuals to contribute even in the presence of government provision, thereby reducing crowd-out.
C. Taxing non-contributors to the public good: Imposing taxes on non-contributors to the public good creates a mechanism to enforce participation and ensure that everyone contributes their fair share. By mandating contributions from non-contributors, it reduces the possibility of full crowd-out.
By combining these three factors, individuals are motivated intrinsically, emotionally, and through taxation to contribute to the public good, reducing the likelihood of full crowd-out and encouraging a more balanced provision of public goods.
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Assume that you want to retire 20 years later from now. Your goal is to create a saving fund which can allow you to withdraw RM 20,000 every year for 25 years during your retirement. Assume the interest rate for the saving is 7% per year. (i) Calculate the total amount of money in the saving fund when you start retiring so that you can withdraw RM 20,000 every year for 25 years. (ii) Calculate how much money should be saved now in order to achieve the goal.
The total amount of money in the saving fund, when you start retiring, should be approximately RM 310,563.33.
Approximately RM 139,040.16 should be saved now in order to achieve the goal of withdrawing RM 20,000 every year for 25 years during retirement, considering an interest rate of 7% per year.
(i) To calculate the total amount of money in the saving fund when you start retiring, we can use the formula for the future value of an ordinary annuity. The annual withdrawal amount is RM 20,000, and the retirement period is 25 years.
Using the formula:
Total amount = Annual withdrawal amount * [(1 - (1 + Interest rate)^(-Number of years)) / Interest rate]
First, let's calculate the interest rate per period:
Interest rate per period = (1 + Annual interest rate)^(1/number of periods) - 1
= (1 + 0.07)^(1/1) - 1
= 0.07
Plugging the values into the formula:
Total amount = RM 20,000 * [(1 - (1 + 0.07)^(-25)) / 0.07]
≈ RM 310,563.33
Therefore, the total amount of money in the saving fund when you start retiring should be approximately RM 310,563.33.
(ii) To calculate how much money should be saved now to achieve the goal, we need to find the present value of the annuity. The present value represents the lump sum amount that needs to be saved today to support future withdrawals.
Using the formula for the present value of an ordinary annuity:
Present value = Annual withdrawal amount * [(1 - (1 + Interest rate)^(-Number of years)) / Interest rate] * (1 + Interest rate)
Plugging in the values:
Present value = RM 20,000 * [(1 - (1 + 0.07)^(-25)) / 0.07] * (1 + 0.07)
≈ RM 139,040.16
Therefore, approximately RM 139,040.16 should be saved now in order to achieve the goal of withdrawing RM 20,000 every year for 25 years during retirement, considering an interest rate of 7% per year.
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