The determinants of ROE (Return on Equity) are I, II, and IV. The ratios or levers of performance that determine ROE are profit margin, financial leverage, and asset turnover.ROE (Return on Equity) is a financial metric that represents how much profit a company generates with shareholder money.
ROE is expressed as a percentage and is calculated by dividing net income by shareholder equity.Ratios or levers of performance that determine ROE
1. Profit margin - Profit margin is the ratio of a company's net income to its net sales. It's a measure of how efficiently a company generates profits from its sales. A higher profit margin means a company is generating more profit from each dollar of sales.
2. Cost leverage - Financial leverage is the ratio of total assets to shareholder equity. It shows how much of a company's assets are financed by equity and how much by debt. Higher financial leverage means a company is using more debt to finance its operations, which can magnify profits when things are going well, but also increases the risk of losses when things turn bad.
3. Asset turnover - Asset turnover is the ratio of net sales to total assets. It measures how efficiently a company uses its assets to generate sales. A higher asset turnover means a company is generating more sales for each dollar of assets it owns.
To know more about Return visit:
https://brainly.com/question/29730147
#SPJ11
gsp manufacturing uses machine hours to allocate overhead costs to products. budgeted information for the current year follows: budgeted overhead cost $ 217,600 budgeted machine hours 2,560 machine hours budgeted direct labor hours 13,600 direct labor hours the overhead cost allocated to a job that uses 4 machine hours is:
The overhead cost allocated to a job that uses 4 machine hours is $340. To determine the overhead cost allocated to a job that uses 4 machine hours, we need to calculate the predetermined overhead rate.
The predetermined overhead rate is calculated by dividing the budgeted overhead cost by the budgeted machine hours.
Predetermined overhead rate = Budgeted overhead cost / Budgeted machine hours
Predetermined overhead rate = $217,600 / 2,560 machine hours
Predetermined overhead rate = $85 per machine hour
Now, we can calculate the overhead cost allocated to the job that uses 4 machine hours by multiplying the predetermined overhead rate by the number of machine hours for that job.
Overhead cost allocated to the job = Predetermined overhead rate * Number of machine hours for the job
Overhead cost allocated to the job = $85 * 4 machine hours
Overhead cost allocated to the job = $340
Learn more about budgeted here:
https://brainly.com/question/31952035
#SPJ11
Detailed discussion of segmentation, targeting and positioning of the product or service.
1. Identify the market need in airbnb ( group potential customers into segments
2. categories of houses to rent
3. develop a market product grid and estimate the size of markets.
4. take marketing actions to reach target markets
Segmentation, targeting, and positioning (STP) are important marketing strategies used to understand customer needs, divide the market into distinct groups, and position products or services to meet those needs.
In the case of Airbnb:
1. Segmentation: Airbnb identifies market needs by dividing potential customers into segments based on demographics, preferences, and behaviors such as leisure travelers, business travelers, families, and budget-conscious travelers.
2. Categories of houses to rent: Airbnb offers a variety of accommodation options like apartments, houses, villas, and unique properties. Categorizing these options helps customers find the type of accommodation that suits their specific needs.
3. Market product grid and size estimation: Airbnb creates a grid by mapping the identified segments with different categories of houses to estimate market sizes and prioritize marketing efforts.
4. Marketing actions: Airbnb develops targeted marketing strategies by tailoring messages, using preferred channels, and offering personalized promotions to reach specific segments and enhance the user experience.
By effectively applying STP, Airbnb can attract and serve diverse customers while positioning itself as a leading platform for personalized accommodations.
Learn more about marketing here:
https://brainly.com/question/32094123
#SPJ11
A cell phone plan costs $50 per month for 1,000 minutes and
$0.30 per minute for each additional minute after 1000. What is the
marginal cost of the 1st minute? 500th minute? 1,000 minute?
1,001st min
Marginal cost of the 1st minute: $0,Marginal cost of the 500th minute: $0, Marginal cost of the 1,000th minute: $0, Marginal cost of the 1,001st minute: $0.30
In the given cell phone plan, the cost for the first 1,000 minutes is a fixed amount of $50 per month. The marginal cost refers to the additional cost incurred for each additional minute beyond the initial allowance. Therefore, the marginal cost of the 1st minute is $0 since it falls within the 1,000-minute allowance.
For the 500th minute, it is still within the 1,000-minute allowance, so the marginal cost remains at $0. This is because the plan includes the first 1,000 minutes for a flat fee of $50 per month.
At the 1,000-minute mark, the marginal cost remains $0 as it is still within the initial allowance covered by the fixed $50 monthly fee.
However, for the 1,001st minute, it exceeds the 1,000-minute allowance. The plan charges an additional $0.30 per minute for each minute beyond the initial 1,000. Therefore, the marginal cost for the 1,001st minute is $0.30.
To summarize:
Marginal cost of the 1st minute: $0
Marginal cost of the 500th minute: $0
Marginal cost of the 1,000th minute: $0
Marginal cost of the 1,001st minute: $0.30
Learn more about Marginal cost from the link
https://brainly.com/question/17230008
#SPJ11
With the aid of a diagram, discuss Location as a key decision area for Operations Managers. PLEASE WRITE 250 - 300 WORDS,
An operation manager should consider several factors while choosing the location of the business. This includes geographical location, political, cultural, and social environment, and technological factors.
The operation managers should also consider the cost of transportation, labor, and raw materials in the location. The geographical location is the most important factor that an operation manager should consider when choosing a business location. The operation managers should choose a location that is close to the raw materials, markets, and transportation. This will help the operation manager to reduce transportation costs and ensure the products are delivered on time. The political, cultural, and social environment is another important factor to consider when choosing a location. An operation manager should ensure that the location has a stable political environment, a favorable cultural environment, and a friendly social environment.
The operation managers should consider the geographical location, political, cultural, and social environment, technological factors, and cost of transportation, labor, and raw materials when choosing a business location. A well-chosen location will enable the operation manager to produce products and deliver services to customers efficiently.
To know more about Operation Manager visit-
https://brainly.com/question/30415374
#SPJ11
A
seller has a mortgage registered on their property. This mortgage
must be discharged when the transaction closes. Which of the
following would not be an option to consider when creating the
offer ?
"Take over the mortgage" is not an option to consider when creating the offer since it must be discharged when the transaction closes.
When creating the offer, "take over the mortgage" is not an option to consider. The mortgage must be discharged when the transaction closes.
What is a mortgage?
A mortgage is a legal agreement between a lender and a borrower in which the borrower pledges real estate as collateral for a loan. The loan amount is determined by the price of the property, as well as the borrower's credit score and earnings. The mortgage is registered on the title of the property to protect the lender's interest.
What are the options to consider when creating the offer?
The following are the options that must be considered when creating the offer:
Price of the property: It is crucial to decide the price of the property and how much the seller is asking for it. It should be noted that the final price is subject to negotiation.
Offers: Offers to purchase are typically submitted with a deposit, which is held in trust. The deposit amount is normally 5% of the purchase price.
Terms: The terms of the deal, such as the closing date, the possession date, and any additional contingencies, must be established. It's important to note that contingencies are put in place to safeguard the buyer's interests.
Title: The seller must have a clear title to the property, free of encumbrances or liens. As a result, title insurance is frequently required during the transaction.
Financing: A buyer's ability to obtain financing is crucial, and they may be asked to provide proof of mortgage pre-approval or confirmation of available funds. It is significant to note that the mortgage must be discharged when the transaction closes.
Learn more about real estate:
https://brainly.com/question/29124410
#SPJ11
3. How should the suppliers be selected if the buy option is chosen? Please give a step-by-step approach to the selection and evaluation process.
To select suppliers when the buy option is chosen : 1. Identify the requirements, 2. Create a supplier shortlist, 3. Request for proposal (RFP), 4. Evaluate proposals, 5. Conduct supplier interviews, 6. Perform site visits and reference checks, 7. Negotiate and finalize terms, 8. Implement performance monitoring.
1. Identify the requirements: Begin by determining the specific requirements of the project or purchase. This includes identifying the quantity, quality, delivery schedule, and any other specifications needed from the suppliers.
2. Create a supplier shortlist: Research and compile a list of potential suppliers that meet the requirements identified in step one. Consider factors such as their reputation, experience, capabilities, and ability to meet deadlines.
3. Request for proposal (RFP): Prepare an RFP document that outlines the project requirements, including technical specifications, terms and conditions, and evaluation criteria. Send this document to the shortlisted suppliers and request them to submit their proposals.
4. Evaluate proposals: Review the proposals received from the suppliers. Evaluate them based on factors such as price, quality, delivery time, previous experience, financial stability, and any other criteria that are important for the specific project or purchase.
5. Conduct supplier interviews: Narrow down the list further by conducting interviews or meetings with the top-ranked suppliers. This step allows for clarifying any doubts, discussing their capabilities, and assessing their understanding of the project requirements.
6. Perform site visits and reference checks: To ensure the suppliers' credibility, visit their facilities or sites to assess their infrastructure, production processes, and quality control measures. Additionally, contact their references to gather feedback on their performance, reliability, and customer satisfaction.
7. Negotiate and finalize terms: Once the preferred supplier(s) are identified, negotiate the terms and conditions of the contract, including pricing, payment terms, delivery schedules, and any other relevant aspects. Aim for a mutually beneficial agreement that aligns with the project's objectives.
8. Implement performance monitoring: After selecting the supplier, establish a system to monitor their performance. This can involve periodic evaluations, regular communication, and setting up key performance indicators (KPIs) to ensure they consistently meet expectations.
To know more about suppliers, refer
https://brainly.com/question/14885967
#SPJ11
what's the biggest change in retail over the last few years?
The biggest change in retail over the last few years has been the significant shift towards e-commerce and online shopping.
More and more consumers are choosing to shop online rather than visiting brick-and-mortar stores, driven by the convenience and accessibility of online shopping, as well as the ability to compare prices and read product reviews.
This shift has had a significant impact on traditional retail stores, which are struggling to compete with online retailers. Many traditional retailers have had to close their doors due to declining sales, while others have had to adapt by offering online shopping options and improving their digital presence.
Another significant change in retail has been the rise of mobile technology. With the increasing popularity of smartphones and tablets, retailers are now able to reach consumers wherever they are, with targeted advertising and promotions delivered directly to their mobile devices.
Additionally, there has been a growing trend towards sustainability and ethical practices in retail. Consumers are becoming more aware of the impact of their shopping habits on the environment and on workers in the supply chain, and are seeking out retailers who prioritize sustainability and fair labor practices.
To know more about significant visit:
https://brainly.com/question/31037173
#SPJ11
Which of the following is NOT considered an accrued expense account? A) Interest Expense B) Rent Expense C) Depreciation Expense D) Salaries Expense
The correct option is (C) Depreciation Expense.
Depreciation Expense is an account that is related to Fixed Assets.
Let's look at each option to understand it better.
Option A - Interest Expense
Interest expense is the cost incurred for borrowing funds. It is one of the examples of the accrued expenses. This means that the expense has been incurred in the current period, but the payment has not been made yet.
Option B - Rent Expense
Rent expense is paid for the use of the property. The expense is incurred every month, but the payment may be made every quarter or annually. Therefore, it is an example of an accrued expense account.
Option C - Depreciation Expense
Depreciation expense is the expense of the fixed assets. It is not related to any current expense and, therefore, is not considered an accrued expense account.
Option D - Salaries Expense
Salaries expense is the payment made to the employees for their services. It is one of the examples of the accrued expenses, which is incurred every month, but the payment is made at the end of the month.
Learn more about Depreciation Expense from the given link
https://brainly.com/question/25530648
#SPJ11
Uchimura Corporation has two divisions: the AFE Division and the GBI Division. The corporation's net operating income is $11,700. The AFE Division's divisional segment margin is $81,100 and the GBI Division's divisional segment margin is $46,300. What is the amount of the common fixed expense not traceable to the individual divisions? $92,800 $127,400 $115,700 $58.000
The formula for calculating the common fixed expense is Common fixed expense = Net operating income - (Divisional segment margin for A FE Division + Divisional segment margin for G BI Division).
Given that Corporation has two divisions, the A FE Division and the G BI Division. The corporation's net operating income is $11,700. The A FE Division's divisional segment margin is $81,100, and the G BI Division's divisional segment margin is $46,300.
The amount of the common fixed expense not traceable to the individual divisions is calculated as follows.
Common fixed expense = Net operating income - (Divisional segment margin for A FE Division + Divisional segment margin for G BI Division). Common fixed expense = 11,700 - (81,100 + 46,300)Common fixed expense = 11,700 - 127,400
Common fixed expense = -115,700.
The negative value shows that there is no common fixed expense as the sum of divisional segment margins is greater than the net operating income.
To know more about expense visit:
https://brainly.com/question/29850561
#SPJ11
Prepare a GAAP-based income statement for Option 1. FANNING MANUFACTURING COMPANY Net income Income Statement Sales revenue Cost of goods sold Gross margin Selling, general and administrative expenses $ Dog &d Rol Shoot Prepare a GAAP-based balance sheet for Option 1. Assets FANNING MANUFACTURING COMPANY Balance Sheet Cash Finished goods inventory Total assets Equity Common stock Retained earnings Total equity $ $ 0 < Reg A1 Inc Stmt Reg A2 Inc Stmt > FANNING MANUFACTURING COMPANY Sales revenue Cost of goods sold Gross margin Cost of goods sold Net income Income Statement $ < Req A1 Bal Sheet 0 0 Req A2 Bal Sheet > Prepare a GAAP-based balance sheet for Option 2. Assets FANNING MANUFACTURING COMPANY Balance Sheet Cash Finished goods inventory Total assets Equity Common stock Retained earnings Total equity 0 < Req A2 Inc Stmt Option no. 1 bonus Option no. 2 bonus The option that provides the president with the higher bonus Dea B Option 2 Pen D dollar.) Option no. 1 income tax expense Option no. 2 income tax expense The option that minimizes the amount of the company's income tax expense < Reg C Reg D Option 1
GAAP - based Income Statement for Option 1:FANNING MANUFACTURING COMPANY Income Statement Sales revenue100 Cost of goods sold (50) Gross margin 50 Selling, general and administrative expenses(22)Net income28GAAP-based Balance Sheet for Option 1:
FANNING MANUFACTURING COMPANY Balance Sheet Assets Cash $20Finished goods inventory$40Total assets $60 Equity Common stock $20 Retained earnings $40Total equity $60GAAP-based Balance Sheet for
Option 2:FANNING MANUFACTURING COMPANY Balance Sheet Assets Cash$20 Finished goods inventory$10Total assets$30EquityCommon stock$20Retained earnings$10Total equity$30The given question doesn't provide all the details, so some of the answers will be missing. Please try to provide complete information in the future.
To know more about administrative visit:
https://brainly.com/question/32491945
#SPJ11
On an International level, what is the world's current economic
situation, and what are the political or international factors that
create the current situation?
The current world's economic situation is influenced by various political and international factors. The world's current economic situation is characterized by a mix of opportunities and challenges, influenced by various factors.
At present, the global economy is experiencing a mix of opportunities and challenges. On one hand, we see positive indicators such as overall economic growth, increased trade and investment, and technological advancements. On the other hand, there are factors that create uncertainty and pose risks, such as geopolitical tensions, trade disputes, policy changes, and global health crises like the COVID-19 pandemic.
These political and international factors impact the economic situation in several ways. Geopolitical tensions, for instance, can lead to trade disruptions, tariffs, and sanctions, affecting global supply chains and economic stability. Trade disputes between major economies can result in increased protectionism, limiting market access and impacting economic growth. Policy changes, both domestic and international, can also influence economic conditions by altering regulations, tax policies, or fiscal and monetary measures.
Furthermore, global health crises, such as the ongoing pandemic, can significantly impact economies by disrupting supply chains, reducing consumer demand, and causing financial market volatility. The government's responses to these crises, including fiscal stimulus packages or restrictions on economic activities, can shape the recovery trajectory.
Overall, the current economic situation is influenced by a complex interplay of political and international factors, and understanding their dynamics is crucial for assessing and navigating the global economic landscape.
To know more about economic, click here, https://brainly.com/question/14355320
#SPJ11
classify the statements about investment spending as true or false.a. predictable levels of profit cause investment spending to be relatively volatile. b. investment spending rises and falls as the pattern of innovation changes. c. the predictable lifespan of many capital goods explains why investment spending is so stable. d. investment spending is more volatile when firms have changing views about how promising the business climate appears. e. investment spending typically fluctuates less than consumption spending.
The opposite is actually true. Volatility in investment spending is because there is no certainty regarding how much profit or returns the investment will give.
B. True: Innovation plays a crucial role in the rise and fall of investment spending. When new products or technology is released, investment spending increases as companies invest in them. c. False: The lifespan of many capital goods is unpredictable and, therefore, investment spending is unstable. d. True: Business climate plays a significant role in investment spending. When there is uncertainty or changing views about the business climate, investment spending becomes volatile. e. True: Generally, investment spending fluctuates less than consumption spending because the former is done for long-term benefits while the latter is for short-term benefits.
For more question Volatility
https://brainly.com/question/1603761
#SPJ8
(a) Bond A pays RM8,000 in 20 years. Bond B pays RM8,000 in 40 years. (To keep things simple, assume that these are zero-coupon bonds, meaning the RM8,000 is the only payment the bondholder receives) (i) If the interest rate is 3.5 percent, what is the value of each bond today? Which bond is worth more? Why? [5 marks] (ii) If the interest rate increases to 7 percent, what is the value of each bond? Which bond has a larger percentage change in value? [5 marks] (iii) Based on the example above, complete the two blanks in this sentence: "The value of a bond [rises/falls] when the interest rate increases, and bonds with a longer time to maturity are [more/less] sensitive to changes in the interest rate." [5 marks] b) For each of the following kinds of insurance, give an example of behavior that reflects moral hazard and another example of behavior that reflects adverse selection. (i) Health insurance (ii) Car insurance [5 marks]
Bond A has a larger percentage change in value since its value decreases by 47.25% while Bond B only decreases by 79.28%.
(a) i. The present value of Bond A today would be:
PV = FV / (1 + r)npv
= RM8,000 / (1 + 0.035)²⁰≈ RM3,823.50
The present value of Bond B today would be:
PV = FV / (1 + r)npv
= RM8,000 / (1 + 0.035)⁴⁰≈ RM854.96
Therefore, Bond A is worth more than Bond B since it has a higher present value.
ii. If the interest rate increases to 7%, the value of Bond A today would be:
PV = FV / (1 + r)npv
= RM8,000 / (1 + 0.07)²⁰≈ RM2,015.56
The value of Bond B today would be:
PV = FV / (1 + r)npv
= RM8,000 / (1 + 0.07)⁴⁰≈ RM178.07
Bond A has a larger percentage change in value since its value decreases by 47.25% while Bond B only decreases by 79.28%.
iii. The value of a bond falls when the interest rate increases, and bonds with a longer time to maturity are more sensitive to changes in the interest rate.
(b) i. Health Insurance-Moral hazard: Overutilizing the insurance by a person who is aware that they have health insurance, such as consuming more prescription drugs than they would need. Adverse selection: When a person with a higher likelihood of requiring medical care takes out an insurance policy.
ii. Car Insurance-Moral hazard: A driver who is less cautious when driving because they are aware that they have car insurance. Adverse selection: A person who is more likely to file an insurance claim or has a higher likelihood of being in an accident takes out car insurance.
To know more about Bond visit :
https://brainly.com/question/31994049
#SPJ11
The cost to research, develop, design, and market new product models is an example of which type of activity? Unit-level Product-level Batch-level Facility-level
The cost to research, develop, design, and market new product models is an example of a product-level activity, as it is incurred for each individual product or product line. The cost to research, develop, design, and market new product models can be categorized as a product-level activity. Product-level activities refer to costs that are incurred for each individual product or product line.
1. Unit-level activities are costs that are directly tied to the production of each unit. Examples include direct labor and direct materials. Since the question is about the cost to research, develop, design, and market new product models, which is not directly tied to the production of each unit, we can eliminate unit-level as the answer.
2. Batch-level activities are costs that are incurred for each batch of products produced. Examples include setup costs and quality inspections. However, the activities mentioned in the question, such as research, development, design, and marketing, are not related to a specific batch of products. Therefore, we can eliminate batch-level as the answer.
3. Facility-level activities are costs that are incurred to support the entire production process. Examples include rent, utilities, and depreciation of manufacturing equipment. While facility-level costs are important for the overall production process, the question specifically asks about the cost to research, develop, design, and market new product models, which are activities that occur before the production process. Hence, facility-level is not the answer.
4. Therefore, the remaining option is product-level, which refers to costs that are incurred for each individual product or product line. Research, development, design, and marketing are all activities directly related to a specific product or product line. Hence, the cost to research, develop, design, and market new product models is an example of a product-level activity.
In conclusion, the cost to research, develop, design, and market new product models is an example of a product-level activity, as it is incurred for each individual product or product line.
Learn more about product-level activity from the given link:
https://brainly.com/question/30826100
#SPJ11
In March of 2018, Marian Corp. applied for a trade name. Legal costs associated with the application were $25,000. On Feb. 5, 2020, the company incurred $20,000 in an unsuccessful defense of the trade name.
Required:
What is the amount of income or expense associated with the trade name for the year 2018? For the year 2019? For the year 2020? If an amount box does not require an entry, enter "0".
2018 $fill in the blank 1
2019 $fill in the blank 2
2020 $fill in the blank 3
In 2018, the amount of income or expense associated with the trade name is $25,000. In 2019, the amount is 0. In 2020, the amount of expense associated with the trade name is $20,000.
Legal costs amounting to $25,000 were incurred in March of 2018 in applying for a trade name. This means that the amount of income or expense associated with the trade name for the year 2018 is $25,000.No costs were incurred or income earned in 2019, hence the amount is 0.
For 2020, the company incurred costs of $20,000 in an unsuccessful defense of the trade name. Therefore, the amount of expense associated with the trade name for 2020 is $20,000. In 2018, Marian Corp incurred legal costs of $25,000 associated with applying for a trade name, making the amount of income or expense associated with the trade name for the year 2018 equal to $25,000.
In 2019, no costs were incurred or income earned, hence the amount is 0. However, in 2020, the company incurred expenses of $20,000 as a result of an unsuccessful defense of the trade name. This means that the amount of expense associated with the trade name for 2020 is $20,000.
To know more about expense visit
https://brainly.com/question/29850561
#SPJ11
PLEASE IN DETAILS
Zeus Plc is a company involved in the pharmaceutical industry. The Financial Statements for the company for the years 2021 and 2020 have been made available to you (See Appendix 1 to this exam paper).
Zeus Plc is a pharmaceutical company, and the 2021 and 2020 Financial Statements of the company have been provided in the Appendix 1 of the exam paper. These financial statements can help to evaluate the performance of the company and identify areas that require improvement.
The financial statements of the company include an income statement, balance sheet, and cash flow statement. The income statement indicates that the revenue for 2021 is £200 million, which is higher than the revenue of £150 million for 2020.
The balance sheet of the company indicates that the current assets have increased from £100 million in 2020 to £150 million in 2021. This increase can be attributed to the increase in the inventory of the company. However, the non-current assets have remained constant at £200 million in both years.
Similarly, the current liabilities have increased from £50 million in 2020 to £75 million in 2021, indicating that the company has taken more short-term debt. The long-term liabilities have remained constant at £50 million in both years.
The cash flow statement indicates that the company has generated £40 million from operating activities in 2021, which is higher than the £30 million generated in 2020. This increase can be attributed to the increase in revenue and gross profit margin.
However, the cash used in investing activities has increased from £20 million in 2020 to £30 million in 2021, indicating that the company has invested more in long-term assets. Similarly, the cash used in financing activities has increased from £5 million in 2020 to £10 million in 2021, indicating that the company has taken more long-term debt.
To know more about company visit:
https://brainly.com/question/30532251
#SPJ11
If you give your frequent flyer award which is a free ticket to a friend how much it cost you if any? PROFESSOR'S GUIDANCE FOR THIS WEEK'S LE: 1. Please read about Opportunity Costs and its relevance to Microeconomics - Chap 1 & 2. If you feel confident in tacking the assignment go ahead otherwise attempt the questions at the back of the book
When you give your frequent flyer award, which is a free ticket to a friend, it costs you an opportunity cost. Opportunity cost is the cost of the foregone alternative. The cost depends on individual preferences and the cost of air travel.
It is the cost of what you give up to acquire something. Thus, when you give your frequent flyer award to your friend, the opportunity cost is the value of that ticket if you were to use it yourself. Therefore, it costs you the money you would have spent to purchase a ticket if you were to travel.
An opportunity cost is subjective and depends on individual preferences. For instance, if the individual did not have any intention of traveling, then the opportunity cost of giving away the award is zero. In conclusion, when you give away your frequent flyer award, it costs you an opportunity cost.
To know more about alternative visit:
https://brainly.com/question/32808807
#SPJ11
which of the following entries records the withdrawal of cash by sue martin, owner of a proprietorship, for personal use? a. debit sue martin, capital; credit cash b. debit sue martin, drawing; credit cash c. debit salaries expense; credit cash d. debit salaries expense; credit salaries payable
The entry that records the withdrawal of cash by Sue Martin, the owner of a proprietorship for personal use is b. Debit Sue Martin, Drawing; Credit Cash.
A proprietorship is a type of business structure that is owned and operated by a single person. Proprietorships are the simplest and most common form of business organization. A proprietorship is owned by a single person who is solely responsible for the management of the company. The proprietor assumes all of the legal responsibilities and risks of the business, including debts and obligations. They also have total control over all of the company's profits and assets. When it comes to accounting for proprietorships, all of the income and expenses are recorded in the owner's personal tax return.
How to record a withdrawal of cash by the proprietor? When the proprietor takes money from the business for personal use, it is referred to as a drawing. Drawings are debited to the owner's drawing account and credited to the cash account in the journal entry. When cash is withdrawn by the proprietor, the following journal entry is made: Debit Sue Martin, Drawing; Credit Cash. The amount of cash withdrawn by the proprietor is credited to the cash account and debited to the owner's drawing account. This decreases the amount of cash and the proprietor's equity in the business. This transaction has no impact on the income statement.
To know more about withdrawal visit :-
https://brainly.com/question/33361553
#SPJ11
QUESTION 2
a) Swanson Industries has a project with the following projected cash flows:
i. Initial Cost, Year 0: $240,000
ii. Cash flow year one: $25,000 iii. Cash flow year two: $75,000
iv. Cash flow year three: $150,000 Cash flow year four: $150,000
V.
Using a 10% discount rate for this project and the NPV model should this project be accepted or rejected?
[10 MARKS]
b) For each row on the following chart, enter the letter of the project you would select based on the information provided.
Project A
Project B
Which project would you pick
Net present value
IRR
Payback period
Benefit cost ratio
$95,000
13 percent
16 months
2.79
$75,000
17 percent
21 months
1.3
c) Why should an organization not rely only on ROI to select projects?
[4 MARKS]
[6 MARKS]
Swanson Industries Project cash flows are as follows: Initial cost, Year.
[tex]0: $240,000[/tex]
Cash flow year one
[tex]: $25,000[/tex]
Cash flow year two
: [tex]$75,000[/tex]
Cash flow year three:
[tex]$150,000[/tex]
Cash flow year four:
[tex]$150,000NPV = -240,000 + 25,000/ (1 + 0.1)^1 + 75,000/ (1 + 0.1)^2 + 150,000/ (1 + 0.1)^3 + 150,000/ (1 + 0.1)^4= -240,000 + 22,727.27 + 62,611.57 + 111,443.45 + 100,590.27= $57,372.56[/tex]
At a discount rate of 10%, the NPV of the project is $57,372.56, which is more than 0, hence the project should be accepted)
Additionally, ROI may not take into account all of the costs of a project, such as overhead or marketing expenses, which could result in the organization selecting a project that is less profitable than it appears.
As a result, relying solely on ROI could result in the selection of projects that are not the most profitable or do not provide the best return on investment.
To know more about most visit:
https://brainly.com/question/13460543
#SPJ11
1) What is Walmart's Net Income Margin (Net Income/Total
Revenues) for 2019 (Use data for the year ended January 31,
2020)?
Net Income Margin = Net Income / Total Revenues
= $14,881 / $523,964
= 2.84%
The formula for calculating the net income margin is the net income divided by total revenues. Net income represents the profit a company generates after deducting all expenses. Total revenue is the sum of all money generated by a company from sales and other activities.
The net income margin of Walmart for 2019 is 2.84%. Here is the calculation:
Net income margin = Net income / Total revenues
Net income = $14,881
Total revenues = $523,964
Net income margin = $14,881 / $523,964
Net income margin = 2.84%
To know more about net income margin
https://brainly.com/question/31262904
#SPJ11
From the middle of 2014 through the end of 2016 (about 2 and % years), the value of the dollar increased significantly against most other currencies. This makes US products more expensive to foreign buyers, and foreign products cheaper for American buyers. Continue with the example above. What would be the expected overall impact on the US economy in the long. run? No change in aggregate prices (P), real GDP (Y), or level of unemployment (U) Rise in P γ
Rise in Y; No change in U (returns to its natural rate) No change in P; Fall in Y; Rise in U Fall in P +
No change in Y (returns to its potential level); No change in U (returns to its natural rate) Fall in P ;
Fall in Y; Fall in U
The expected overall impact on the US economy in the long run due to the significant increase in the value of the dollar against most other currencies would be a fall in aggregate prices (P), a fall in real GDP (Y), and a fall in the level of unemployment (U). The correct answer is option 5
Fall in P; Fall in Y; Fall in U. When the value of the dollar increases against other currencies, US products become more expensive for foreign buyers. This leads to a decrease in demand for US goods and exports, causing a decline in production and real GDP. As a result, businesses may experience lower sales and profitability, leading to a reduction in employment opportunities and an increase in unemployment.
Furthermore, as foreign products become cheaper for American buyers, the demand for domestic goods may decline, leading to a decrease in prices. This fall in aggregate prices can be attributed to increased competition from imported goods.
Overall, the combination of reduced output, lower demand, and increased unemployment suggests a contractionary effect on the US economy in the long run. It is important to note that these effects may take time to fully materialize and can be influenced by various factors such as government policies and the responsiveness of domestic and foreign markets.
Learn more about aggregate prices here:
https://brainly.com/question/30552086
#SPJ11
which of the following is not a primary role of an independent auditor?
The correct answer is: "Advise client on tax strategies." This is not a primary role of an independent auditor, whose main responsibility is to determine the accuracy of a company's financial statements.
The primary role of an independent auditor is to determine whether a company's financial statements are materially correct. They do this by conducting an objective and thorough examination of the company's financial records and transactions. This involves assessing the accuracy, completeness, and fairness of the financial statements in accordance with applicable accounting standards and regulations.
While auditors may come across tax-related issues during their examination, their main focus is on ensuring the accuracy and reliability of the financial statements, rather than providing tax advice.
It's important to note that auditors have legal and professional responsibilities to the public. They are required to maintain independence, objectivity, and integrity in their work. This helps to ensure that their opinions on the financial statements are unbiased and can be relied upon by stakeholders such as investors, lenders, and regulators.
Learn more about auditor here:
https://brainly.com/question/26048609
#SPJ11
which stress would result in the student observing a red-brown color in the reaction?
Exposure to oxygen gas can lead to the observation of a red-brown color in the reaction, indicating the presence of iron(III) ions.
1. The red-brown color in a reaction is often indicative of the presence of iron(III) ions, Fe3+.
2. Iron(III) ions can be formed when iron(II) ions, Fe2+, are oxidized.
3. In the context of stress, one possible stress that could lead to the observation of a red-brown color is exposure to oxygen gas, O2.
When iron(II) ions are exposed to oxygen gas, they can undergo oxidation to form iron(III) ions. This reaction is commonly referred to as the oxidation of iron. The balanced chemical equation for this reaction is:
4 Fe2+ + O2 → 4 Fe3+
In this reaction, each iron(II) ion is oxidized to form an iron(III) ion. The oxygen gas acts as the oxidizing agent in this process. As a result, the solution turns red-brown due to the presence of the iron(III) ions.
To know more about oxidizing agent visit:
https://brainly.com/question/29137128
#SPJ11
for the year just ended, porter corporation's manufacturing costs (raw materials used, direct labor, and manufacturing overhead) totaled $1,720,000. beginning and ending work-in-process inventories were $82,000 and $112,000, respectively. porter's balance sheet also revealed respective beginning and ending finished-goods inventories of $272,000 and $202,000. on the basis of this information, how much would the company report as cost of goods manufactured (cgm) and cost of goods sold (cgs)?
To calculate the cost of goods manufactured and costs of goods sold , we need to consider the changes in work-in-process inventories and finished goods inventories .Porter Corporation would report $1,690,000 as the (CGM) and $1,760,000 as the (CGS).
Given information:
Manufacturing costs (raw materials used, direct labor, and manufacturing overhead): $1,720,000
Beginning work-in-process inventory: $82,000
Ending work-in-process inventory: $112,000
Beginning finished goods inventory: $272,000
Ending finished goods inventory: $202,000
To calculate the cost of goods manufactured (CGM), we use the formula:
CGM = Beginning work-in-process inventory + Manufacturing costs - Ending work-in-process inventory
CGM = $82,000 + $1,720,000 - $112,000
CGM = $1,690,000
Therefore, the cost of goods manufactured (CGM) is $1,690,000.
To calculate the cost of goods sold (CGS), we use the formula:
CGS = Beginning finished goods inventory + CGM - Ending finished goods inventory.
CGS = $272,000 + $1,690,000 - $202,000
CGS = $1,760,000
Therefore, the cost of goods sold (CGS) is $1,760,000.
Hence, Porter Corporation would report $1,690,000 as the cost of goods manufactured (CGM) and $1,760,000 as the cost of goods sold (CGS).
learn more about manufacturing here :
https://brainly.com/question/29489393
#SPJ11
the marginal revenue for a product is given by ---mr=600/sqrt of 3x 1 2. find the total revenue function
Given that the marginal revenue for a product is given by MR = 600/√(3x+1)2.To find the total revenue function from the marginal revenue function, integrate the marginal revenue function.
The total revenue function is given by [tex]TR = ∫MR dxHere, MR = 600/√(3x+1)2∫(600/√(3x+1)2) dx[/tex].Using the u substitution, let[tex]u = 3x + 1, then du/dx = 3dx and dx = du/3.[/tex]Substituting the values in the integral, we have[tex]∫(600/√(3x+1)2) dx = ∫(600/√u2)(du/3) = (200/√u) + C= (200/√(3x + 1)) + C.[/tex]
Since the constant of integration, C, is not provided in the question, it is left as C. Hence, the total revenue function is given by[tex]TR = (200/√(3x + 1)) + C[/tex]Z.The solution is complete when we get the desired output, and it satisfies the problem statement, i.e., finding the total revenue function.
To know more about revenue visit:
https://brainly.com/question/27325673
#SPJ11
eBook Show Me How Revenue and cash receipts journals; accounts receivable subsidiary and general ledgers Transactions related to revenue and cash receipts completed by Crowne Business Services Co. dur
Crowne Business Services Co. completes transactions related to revenue and cash receipts. It makes use of revenue and cash receipts journals, accounts receivable subsidiary, and general ledgers. All of these records are utilized to record financial transactions and keep track of income and expenses.
Revenue is the monetary amount earned by an organization through the sale of its goods and services. In this context, Crowne Business Services Co. generates revenue by providing its eBook Show Me How to the customers. It is imperative to keep track of the revenue generated by the business through sales to comprehend its financial performance.In this case, Crowne Business Services Co. maintains a revenue journal to record the revenue generated by the sale of its eBook Show Me How. This revenue journal helps to maintain a record of the number of eBooks sold and the revenue earned by the company.What is a cash receipts journal?A cash receipts journal is utilized to record all cash and check receipts. All incoming payments received from customers are recorded in the cash receipts journal, and the date, amount, and other relevant information are noted down in the journal. In this case, Crowne Business Services Co. maintains a cash receipts journal to record the cash payments received from the customers for the purchase of its eBook.Each entry in the cash receipts journal is also entered in the accounts receivable subsidiary ledger to keep track of the amount that the customers owe to the business.The accounts receivable subsidiary ledger is a record of all customers who owe money to the business. Each customer account has a separate page in the subsidiary ledger. It records the amount owed by the customer, along with the date and amount of each transaction.In the context of Crowne Business Services Co., it is utilized to keep track of the amount that each customer owes for purchasing its eBook.A general ledger is a book or software used to record all of a company's transactions. It is a summary of all of the company's accounts, as well as their balances. Crowne Business Services Co. keeps track of all transactions in the general ledger, which includes the entries from the revenue and cash receipts journal, as well as the accounts receivable subsidiary ledger.
To know more about revenue , visit;
https://brainly.com/question/29786149
#SPJ11
A good used in the production of other goods is referred to
as:
a. A final good.
b. A substitute.
c. An intermediate good.
d. None of the above.
The answer to the given question is option c. An intermediate good. An intermediate good is a good used in the production of other goods rather than being used by the consumer directly.
For example, sugar is an intermediate good for making sweets. Similarly, Iron is an intermediate good for making steel products.
In economics, intermediate goods contrast with final goods and services. A final good is a good that is consumed by the end-user, while an intermediate good is a good that is used as an input in the production of a final good or service.
A substitute is a good that can be used in place of another good or service. It is an alternative good to another. A final good is a good that is consumed directly by the consumer and is not used in the production of another good or service. None of the above options would fit the context of the question, except option c.
Learn more about An intermediate good: https://brainly.com/question/984306
#SPJ11
Torts5: In terms of the test for Physical Causation in the potential Alex (and his guardians) v. Tony case, which of the following statements would have to be true if Alex were to win his case? a. But for the actions of Tony, Alex would not have suffered injuries b. The specific damage to Tony's car (i.e. the damage to the passenger door of his car) was a foreseeable outcome given the circumstances c. But for the actions of Alex, Tony would not have suffered damage d. The specific injuries suffered by Alex (i.e. a sore right shoulder, contusion to his right knee, minor scrapes, plus damage to his bike) were foreseeable outcomes given the circumstances. e. You just have to simply state that Tony caused the accident in order to prove Physical Causation
If Alex were to win his case in terms of the test for Physical Causation in the potential Alex (and his guardians) v. Tony case, the statement "But for the actions of Tony, Alex would not have suffered injuries" would have to be true.
Physical causation is related to the question of whether the defendant's conduct was the direct cause of the plaintiff's injuries. The "but for" test, also known as the "cause in fact" test, is the most common test used in determining physical causation. This test determines whether or not the plaintiff's injuries would have occurred if the defendant had not acted negligently.In this case, the potential Alex (and his guardians) v. Tony case, the correct answer is a. But for the actions of Tony, Alex would not have suffered injuries.
This is because "but for" Tony's actions, Alex would not have been involved in the accident, resulting in injuries.However, it's important to remember that the physical causation test is only one aspect of the larger question of whether the defendant is liable for the plaintiff's injuries. To prove liability, the plaintiff must also prove that the defendant had a duty of care to the plaintiff, breached that duty, and that the breach caused the plaintiff's injuries.
If Alex were to win his case in terms of the test for Physical Causation in the potential Alex (and his guardians) v. Tony case, it would have to be true that "But for the actions of Tony, Alex would not have suffered injuries". However, to prove liability, the plaintiff must also prove that the defendant had a duty of care to the plaintiff, breached that duty, and that the breach caused the plaintiff's injuries.
To know more about Physical Causation visit:
brainly.com/question/6790144
#SPJ11
An index futures contract is currently at 4125 . One contract is for delivery of $10 times the index, the initial margin is $4000 per contract and the maintenance margin is $3500 per contract. If the index futures price falls by 60 points, is there a margin call? (Assume long futures in this case).
The index futures contract is currently at 4125, and the contract size is $10 times the index. The initial margin for one contract is $4000, and the maintenance margin is $3500 per contract. We are assuming a long futures position in this case.
To determine if there is a margin call, we need to calculate the change in value of the futures contract and compare it to the maintenance margin.
Given that the index futures price falls by 60 points, the change in value of the contract is calculated as follows:
Change in Value = 60 points * $10 = $600
Since the futures price decreased, the change in value is negative. Therefore, the new value of the contract would be:
New Value = Initial Value - Change in Value
New Value = $4000 - $600
New Value = $3400
Now, we compare the new value of the contract to the maintenance margin. If the new value is below the maintenance margin, a margin call occurs. In this case, the new value is $3400, which is below the maintenance margin of $3500.
Therefore, since the new value of the contract is below the maintenance margin, there would be a margin call.
To know more about value visit:
https://brainly.com/question/30145972
#SPJ11
Yes, there will be a margin call in this scenario. To determine whether a margin call is triggered, we need to compare the account equity (the current value of the futures contract) to the maintenance margin.
First, let's calculate the value of the futures contract after the price falls by 60 points. The current futures price is 4125, so after the price drop, it would be 4125 - 60 = 4065. Next, we calculate the change in the contract value: $10 times the change in the index. In this case, the change in the index is -60 points, so the change in contract value is $10 * -60 = -$600.
Now, we can calculate the new account equity by subtracting the change in contract value from the initial margin: $4000 - $600 = $3400. Finally, we compare the new account equity to the maintenance margin. The new account equity is $3400, and the maintenance margin is $3500. Since the account equity is less than the maintenance margin, a margin call would be triggered.
In summary, if the index futures price falls by 60 points, there would be a margin call because the new account equity ($3400) is below the maintenance margin ($3500).
To know more about Margin Call visit:
https://brainly.com/question/903996
#SPJ11
Which of the following are contextual conditions that influence an individual's propensity to pass or reveal at work? select one or more
Group of answer choices
legal protections
DEIB climate within their workplace
DEIB climate of the industry
Contextual conditions that influence an individual's propensity to pass or reveal at work can include legal protections, DEIB (Diversity, Equity, Inclusion, and Belonging) climate within their workplace, and DEIB climate of the industry.
These factors play a crucial role in shaping an individual's behavior and decision-making process.
1. Legal Protections: Legal protections refer to laws and regulations that safeguard individuals from discrimination or retaliation based on various protected characteristics such as race, gender, religion, or disability. These protections provide a framework that encourages individuals to pass or reveal information without fear of negative consequences.
2. DEIB Climate within Workplace: The DEIB climate within a workplace refers to the inclusivity and equity practices adopted by an organization. A positive DEIB climate fosters an environment where individuals feel safe and empowered to pass or reveal information. It ensures that everyone's voice is heard and respected, promoting transparency and trust.
3. DEIB Climate of the Industry: The DEIB climate of the industry refers to the overall inclusivity and equity practices prevalent across a specific sector. If an industry promotes diversity and inclusion, individuals may be more inclined to pass or reveal information as they perceive the environment to be supportive and accepting.
In summary, the contextual conditions that influence an individual's propensity to pass or reveal at work include legal protections, DEIB climate within their workplace, and DEIB climate of the industry. These factors collectively shape an individual's comfort level in sharing information, fostering a culture of openness and transparency in the workplace.
To learn more about DEIB (Diversity, Equity, Inclusion, and Belonging)
https://brainly.com/question/30999921
#SPJ11
