Both Nadia and Samantha are applying to insure their car against theft. Nadia lives in a secure neighborhood, where the probability of theft is 10%. Samantha lives in a lesser secure neighborhood where the probability of theft is 25%. Both Nadia and Samantha own cars worth $10,000, and are willing to pay $100 over expected loss for insurance.
1. How much would Nadia be willing to pay for the insurance?
2. How much would Samantha be willing to pay for the insurance?
3. Suppose the insurance company cannot tell them apart but expects them to be different values and charges them an average premium of $1850. Who is more likely to buy this insurance?
4. Suppose the insurance company cannot tell them apart but expects them to be different values and charges them an average premium of $1850. How much profit would it make?
5. If the insurance company can correctly anticipate the adverse selection, what premiums should it charge??
6. If the insurance company can correctly anticipate the adverse selection, who would be insured?

Answers

Answer 1

Answer:

i dont lknow like


Related Questions

n any quarter the college needs to make available 8 less English sections than Math sections. In any quarter student demand for the optional Philosophy course is half as many sections as English sections. Available classrooms limit the total sections of all three courses to 48 Given these constraints how many sections of each course should the college make available each quarter to meet demand

Answers

Answer:

math =  24

English = 16

Philosophy  = 8

Explanation:

Given that the college needs to make 8 less English courses available compared to math In each quarter

Let English  = x ,   math = x + 8    ( in each quarter )

philosophy demand by student in each quarter = 1/2*x = x/2

limit of all three courses in a classroom = 48

i.e.  x + (x+ 8 ) + x/2 = 48

    = 2x + x/2 = 48 - 8

    = 2x + x/2 = 40 ∴  5x / 2 = 40

hence : x = 80 / 5 = 16

The number of sections of each course that the college should make available in each quarter to meet demand

math = x + 8 = 16 + 8 = 24

English = x  = 16

Philosophy = x/2 = 16 / 2 = 8

Answer:

Math =  24

English = 16

Philosophy  = 8

On January 1, 2021 Rastell Co signed a long term finance lease for an office building. The terms of the lease required Rastall to pay 16,000 annually beginning December 31, 2021 and continuing each year for 16 years. On January 1, 2021 the present value of the lease payments is 151, 146 discounted at the 7% interest rate implicit in the lease In Rastall’s December 31, 2021, balance sheet, the lease payable should be:

a. $109,200
b. $112,679
c. $221,000
d. $95,679

Answers

Answer:

$145,726

Explanation:

Note: The options to this question belongs to another question entirely and that is attached as picture. So, the correct answer is not among the 4 options

Interest expense = Present value of lease payment * Interest rate

Interest expense = $151,146 * 7%

Interest expense = $10,580.22

Particulars                                                                           Amount

Present value of lease payment                                       $151,146

Add: Interest expense                                                       $10.580

Less: Annual Payments                                                     ($16,000)

Lease Payable on December 31, 2021 Balance Sheet  $145,726

Larry Mattingly turned 20 years old today. His grandfather had established a trust fund that will pay him $84,000 on his next birthday. However, Larry needs money today to start his college education, and his father is willing to help. Mr. Mattingly has agreed to give Larry the present value of the $84,000 future cash inflow, assuming a 10 percent rate of return. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)
Determine the amount of cash that Larry Mattingly's father should give him.

Answers

Answer:

Present Value = $76363.636363  rounded off to $76363.64

Explanation:

The present value can be calculated using the following formula,

Present Value = Future Value / (1+r)^t

Where,

r is the rate of returnt is the time period

Present Value = 84000 * (1+0.10)^1

Present Value = $76363.636363  rounded off to $76363.64

Swifty Company publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $26 per year. During November 2019, Swifty sells 27,120 subscriptions beginning with the December issue. Swifty prepares financial statements quarterly and recognizes subscription revenue at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue.
1. Prepare the entry in November for the receipt of the subscriptions (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
2. Prepare the adjusting entry at December 31, 2015, to record sales revenue recognized in December 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answers

Answer:

A. Dr Cash $705,120

Cr Unearned subscription revenue

B. Dr Unearned subscription revenue $58,760

($705,120 *1/12)

Cr Subscription revenue $58,760

Explanation:

a) Preparation of the entry in November for the receipt of the subscriptions

Dr Cash $705,120

(27,120*$26)

Cr Unearned subscription revenue $705,120

(To record the receipt of the subscriptions)

b) Preparation of the adjusting entry at December 31, 2015, to record sales revenue recognized in December 2015

Dr Unearned subscription revenue $58,760

($705,120 *1/12)

Cr Subscription revenue $58,760

(To record sales revenue recognized)

A company is trying to estimate the cost of debt for a new project. For their estimate, they will find the yield to maturity on existing company bonds. They have one outstanding bond issue at the moment that will mature in 15.00 years. The bond pays an annual coupon of 9.00%, with a face value of $1,000. The bond currently trades at 92.00% of face value. What is the yield to maturity on the existing debt

Answers

Answer:

Yield to maturity =9.9%

Explanation:

The yield to maturity is the return on debt expressed in percentage.  It can be used to worked as follows using the formula below

YTM =( C + F-P/n) ÷ ( 1/2× (F+P))

C- annual coupon,  

F- face value ,

P- current price,  

n- number of years to maturity

YM - Yield to maturity

C- 9%× 1000 =90 , P- 92×1000= 920,  F- 1000

AYM = 90 + (1000-920)/15 ÷ 1/2× (1000+920)

= 95.33 ÷ 960

Yield to maturity =9.9%

Cominsky Company purchased a machine on July 1, 2018, for $28,000. Cominsky paid $200 in title fees and county property tax of $125 on the machine. In addition, Cominsky paid $500 shipping charges for delivery, and $475 was paid to a local contractor to build and wire a platform for the machine on the plant floor. The machine has an estimated useful life of 6 years with a salvage value of $3,000.
Determine the depreciation base of Cominsky’s new machine. Cominsky uses straight-line depreciation.
Depreciation base $
Entry field with incorrect answer now contains modified data

Answers

Answer:

$26,300

Explanation:

Depreciation Base is the total amount charged to expenses over an asset's useful life.

In Straight line method of Depreciation:

Depreciation Base = (Cost of Asset - Salvage Value)

Cost of Asset $28,000 + $200 + $125 + $500 + $475

Cost of Asset = $29,300

Depreciable Base = $29,300 - $3,000

Depreciable Base = $26,300

Write a paragraph about Bad customer service

Answers

at every store or restaurant you expect to get good customer service, but at many places you get bad customer service. you would expect that if people are choosing to work witj people for their job, they would enjoy what they do. but sometimes that is just not the case.

Answer:

Bad customer service can be defined as when a business fails to meet the customer expectations in terms of service quality, response time, or overall customer experience. ... According to NewVoiceMedia, an estimated $62 billion is lost by U.S. businesses each year following negative customer experiences.Poor customer service can cause employees of a business to feel insecure and unhappy at work. Nobody likes being subject to anger from unpleased customers and without sufficient strategies in place to deal with these complaints, employees are far more likely to feel dissatisfied with their job

Deleon Inc. is preparing its annual budgets for the year ending December 31,2020. Accounting assistants furnish the data shown below. Product Product JB 50 JB 60 Sales budget: Anticipated volume in units 404,800 203,400 $22 $27 Unit selling price Production budget: Desired ending finished goods units 18,100 29,200 Beginning finished goods units 33,700 11,400 Direct materials budget: Direct materials per unit (pounds) 1 18,600 Desired ending direct materials pounds 33,600 Beginning direct materials pou 41,000 11,300 $3 $3 Cost per pound Direct labor budget: Direct labor time per unit 0.3 0.6 Direct labor rate per hour $11 $11 Budgeted income statement: $12 $21 Total unit cost 92 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter sho selling expenses of $664,000 for product JB 50 and $363,000 for product JB 60, and administrative expenses of $542,000 for product JB 50 and $344,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.
Prepare the sales budget for the year.

Answers

Answer:

                               Sales Budget - Deleon Inc.

Particulars                               JB50               JB60               Total

Expected unit sales              404,800          203,400

Selling price per unit            $22.00            $27.00

Projected Sales Revenue   $8,905,600    $5,491,800   $14,397,400

For each of the following scenarios, determine whether the situation described can be attributed to the real-balances effect, the interest-rate effect, or the foreign-purchases effect.

a. As a result of an increase in the price level, the cost of borrowing increases, which causes people to buy fewer cars.

1. Real-balances effect
2. Foreign-purchases effect
3. Interest-rate effect

b. When the price level decreases, restaurants become busier as more people purchase restaurant meals.

1. Real-balances effect
2. Foreign-purchases effect
3. Interest-rate effect

Answers

Answer:

A)Interest-rate effect

B)Real-balances effect

Explanation:

✓The interest rate effect can be regarded as change in borrowing as well as spending behaviors as a consequence or result of adjustment of interest rate. As a general rule, interest are been set by central bank of the nation, then consumer banks will then extend similar interest rates across their customers. For instance

As a result of an increase in the price level, the cost of borrowing increases, which causes people to buy fewer cars.

✓ In economics, real balance effect can be regarded as "Pigou effect" which can be regarded as stimulation of output as well as employment which is been caused as a result of increased consumption through a rise in real balances of wealth, especially during time of deflation. Instance of this is

When the price level decreases, restaurants become busier as more people purchase restaurant meals.

Prepare journal entries to record the following transactions involving the short-term securities investments of Krum Co., all of which occurred during year 2017. On August 1, paid $78,000 cash to purchase Houtte's 12% debt securities ($78,000 principal), dated July 30, 2017, and maturing January 30, 2018 (categorized as available-for-sale securities). On October 30, received a check from Houtte for 90 days' interest on the debt securities purchased in transaction a. (Use 360 days in a year. Do not round your intermediate calculations.)

Answers

Answer:

Journal entries are shown below.

Explanation:

According to the scenario, computation of the given data are as follows,

Short-term security investment = $78,000

Debt securities rate = 12%

Interest on debt securities for 90days = $78,000 × ( 12% × 90÷360 )

= $2,340

So, Journal entries are as follows,

(a) Aug.1, 2017       Short-term security investment A/c Dr.    $78,000

                         To, Cash  A/c           $78,000

                             (Being purchase of debt security is recorded)

(b) Oct.30, 2017       Cash A/c Dr.    $2,340

                         To, Interest  A/c           $2,340

                             (Being interest received is recorded)

Sysco Corporation, formed in 1969, is the largest global distributor of food service products, serving over 500,000 restaurants, hotels, schools, hospitals, and other institutions. The following summarized transactions are typical of those that occurred in a recent year (dollars are in millions).
a. Purchased buildings costing $432 and equipment costing $254 for cash.
b. Borrowed $119 from a bank, signing a short-term note.
c. Provided $55,371 in service to customers during the year, with $28,558 on account and the rest received in cash.
d. Paid $132,074 cash on accounts payable.
e. Purchased $41,683 of inventory on account.
f. Paid payroll, $6,540 during the year.
g. Received $22,043 on account paid by customers.
h. Purchased and used fuel of $1,750 in delivery vehicles during the year (paid for in cash).
i. Declared $698 in dividends at the end of the year to be paid the following year.
j. Incurred $121 in utility usage during the year; paid $110 in cash and owed the rest on account.
Required: For each of the transactions,
prepare journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions.)
Required: For each of the transactions,
prepare journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions.)
View transaction list
Journal entry worksheet
< 1 2 3 4 5 6 7 8 9 10 >
Purchased buildings costing $432 and equipment costing $254 for cash.
Note: Enter debits before credits.
Transaction General Journal Debit Credit
Record entry Clear entry View general journal

Answers

Answer:

Sysco Corporation

General Journal

Transaction a

Debit  : Buildings  $432

Debit  : Equipment  $254

Credit : Cash $686

Transaction b

Debit  : Cash  $119

Credit : Note Payable  $119

Transaction c

Debit  : Accounts Receivable $28,558

Debit : Cash $26,813

Credit : Service Revenue $55,371

Transaction d

Debit  : Accounts Payable $132,074

Credit : Cash $132,074

Transaction e

Debit  : Merchandise Inventory $41,683

Credit : Accounts Payable $41,683

Transaction f

Debit  : Salaries expense $6,540

Credit : Cash $6,540

Transaction g

Debit  : Cash $22,043

Credit : Accounts Receivable $22,043

Transaction h

Debit  : Fuel expense $1,750

Credit : Cash $1,750

Transaction i

Debit  : Dividends $698

Credit : Dividends for Shareholders $698

Transaction j

Debit  : Utilities expense  $121

Credit : Cash $110

Credit : Accounts payable  $21

Explanation:

When there is no immediate payment of cash for expenses incurred, raise a liability - accounts payable. Otherwise recognize cash.

Which of the following is not true of the 3 level variance analysis of operating​ income?

a. Level 2 shows the direct material price and efficiency variances
b. Level 2 shows the​ sales-volume variance for operating income
c. Level 3 shows the fixed overhead production volume variance as a component of the​ sales-volume variance for operating income
d. Level 1 shows the static budget variance for operating income

Answers

Answer:

The option that is not true of the 3 level variance analysis of operating income is:

a. Level 2 shows the direct material price and efficiency variances

Explanation:

The operating income can be analyzed in three levels.  The first level is the static budget versus actual results variance, which shows the difference between the planning budget and the actual results.  The second level is the sale-volume variance, while the third level shows the fixed overhead variance.  This can be collapsed into level 2, with the final level showing more details about direct material price and efficiency variances, etc.

factorize the following algebraic expressions.
m²-64n⁴​

Answers

Answer:

Factorization of the expression = [m - 8n²][m + 8n²]  

Explanation:

Given expression;

m²- 64n⁴​

Find:

Factorization of the expression

Computation:

m²- 64n⁴​

m²- [(8n²)]²​

Using formula;

a² - b² = (a + b)(a - b)

By putting value in above formula;  

So,

Factorization of the expression  = m²- [(8n²)]²​

Factorization of the expression  = (m)²- [(8n²)]²​

Factorization of the expression = [m - 8n²][m + 8n²]  

A review of current distribution procedures reveals that the Valley Voice employs 100 truck drivers to drop off bundles of newspapers to 1,300 teenagers who deliver papers to individual homes. The drivers are paid an hourly wage while the teenagers receive 4 cents for each paper they deliver.

Turkey is considering an alternative method of distributing the papers, which he says has worked in other cities the size of Flower Mound (where the Valley Voice is published). Under the new system, the newspaper would retain 20 truck drivers to transport papers to five distribution centers around the city. The distribution centers are operated by independent contractors who would be responsible for making their own arrangements to deliver papers to subscribers’ homes. The 20 drivers retained by the Valley Voice would receive the same hourly rate as they currently earn, and the independent contractors would receive 20 cents for each paper delivered.

Required:
1. What payroll information does Turkey need in order to make a decision about adopting the alternative distribution method?
2. Assume the following information:

a. The average driver earns $42,000 per year.
b. Average employee income tax withholding is 15 percent.
c. The social security tax is 6.2 percent of the first $122,700 of earnings.
d. The Medicare tax is 1.45 percent of all earnings.
e. The state unemployment tax is 5 percent, and the federal unemployment tax is 0.6 percent of the first $7,000 of earnings.
f. Workers’ compensation insurance is 70 cents per $100 of wages.
g. The paper pays $300 per month for health insurance for each driver and contributes $250 per month to each driver’s pension plan.
h. The paper has liability insurance coverage for all teenage carriers that costs $100,000 per year.

3. Prepare a schedule showing the costs of distributing the newspapers under the current system and the proposed new system. Based on your analysis, which system would you recommend to Turkey?
4. What other factors, monetary and nonmonetary, might influence your decision?

Answers

Question Completion:

The Valley Voice is a local newspaper that is published Monday through Friday. It sells 90,000 coples dally. The paper is currently in a profit squeeze, and the publisher, Tom Turkey, Is looking for ways to reduce expenses.

Answer:

Valley Voice

1. It needs to know the total costs incurred under the old system and the new system.

2. See schedules below showing the costs under the two distribution systems.

3. The old system wins under economic considerations, especially given the fact that the publisher is currently experiencing profit squeeze.

4. If the amount paid per paper to the independent contractors can be renegotiated downwards, this may change the decision.  With the new arrangement, will more papers be sold each day?  Labor practices and laws do not favor the use of teenagers as workers.  Will the company face some penalties or sanctions as a result?  What about the bad publicity that the paper will face as a backlash following the use of teenagers?  There are other considerations.

Explanation:

a) Data and Calculations:

Number of copies daily = 90,000

Number of copies yearly = 32,850,000 (90,000 * 365 days)

Average annual salary of a driver = $42,000

Total annual salary of drivers = $4,200,000

Average employee income tax withholding = 15%

Social security tax = 6.2% of the first $122,700 of earners

Medicare tax = 1.45% all earnings

State Unemployment tax = 5%

Federal Unemployment tax  = 0.6% of the first $7,000 of earnings

Workers' compensation insurance = 0.7% ($0.70 per $100 of wages)

Health insurance for each driver = $3,600 ($300 * 12)

Pension Plan = $3,000 ($250 * 12)

Liability insurance coverage for all teenage carriers = $100,000 per year

Total cost under the old system:

Total annual salary of drivers ($42,000 * 100)         $4,200,000

Social security tax = 6.2% of the first $122,700 =              7,607

Medicare tax = 1.45% all earnings =                                 60,900

State Unemployment tax = 5%                                       105,000 (1/2)

Federal Unemployment tax  = 0.6% of the first

$7,000 of earnings ($700,000 * 0.6%)                            4,200

Workers' compensation insurance = 0.7%

($0.70 per $100 of wages)  ($4,200,000 * 0.7%)         29,400

Health insurance for each driver = $3,600 * 100

($300 * 12)                                                                    360,000

Pension Plan = $3,000 ($250 * 12) $3,000 * 100       300,000

Liability insurance coverage

for all teenage carriers = $100,000 per year             100,000

Payment to teenage carriers ($0.04 * 32,850,000) 1,314,000

Total payroll cost                                                      $6,481,100

Total cost under the new arrangement:

Total annual salary of drivers ($42,000 * 20)         $840,000

Social security tax = 6.2% of the first $122,700 =          7,607

Medicare tax = 1.45% all earnings =                              12,180

State Unemployment tax = 5%                                    21,000 (1/2)

Federal Unemployment tax  = 0.6% of the first

$7,000 of earnings ($700,000 * 0.6%)                       4,200

Workers' compensation insurance = 0.7%

($0.70 per $100 of wages)  ($840,000 * 0.7%)          5,880

Health insurance for each driver = $3,600 * 20

($300 * 12)                                                                 72,000

Pension Plan = $3,000 ($250 * 12) $3,000 * 20     60,000

Payment to contractors ($0.20 * 32,850,000)  6,570,000

Total payroll cost                                               $7,592,867

The IRS agent who audited the Form 1120 filed by Alano Inc. concluded that $300,000 of the salary that Alano paid to its CEO and sole shareholder was a constructive dividend. As a result: Multiple Choice The CEO/shareholder's taxable income increases by $300,000. Alano must distribute an additional $300,000 cash to the CEO/shareholder Alano must distribute an additional $300,000 cash to the CEO/shareholder. Alano's taxable income increases by $300,000.

Answers

Answer: Alano's taxable income increases by $300,000.

Explanation:

Constructive dividends are paid to a shareholder and classified in such a way that they are not to be seen as taxable dividends.

If during auditing however, the IRS determines that it was indeed a taxable dividend, it becomes a constructive dividend.

Constructive dividends are taxable by definition so Alano's taxable income increases by the amount of dividend of $300,000.

A bank loan officer has been approached by a start-up company that needs a five-year loan to purchase the equipment for its first project. The project will have a life of five years. At the end of five years, the equipment will be worthless. The founders of the company told the loan officer that they would be willing to pay a much higher interest rate on a simple interest loan rather than contracting to an add-on interest loan.
A. The loan officer should offer the company an add-on interest loan because there is a high risk that the company will not be able to repay the principal on the loan at the end of the project's life.
B. The loan officer should offer the company a simple interest loan. The bank will make more money in the long run, because it can charge a much higher interest rate.

Answers

Answer:

A.

Explanation:

add on interest loan is more frequently in case of sub prime borrowers.

Question 9 TEME is a manufacturer of toy construction equipment. If it pays out all of its earnings as dividends, it will have earnings of 0.3 million per quarter in perpetuity. Suppose that the discount rate, expressed as an effective annual rate (EAR), is 16%. TEME pays dividends quarterly. What is the value of TEME if it continues to pay out all of its earnings as dividends

Answers

Answer:

8 million

Explanation:

I solved the question a short while ago

Module 4

Fundamentals of Finance

A company has current assets of 100,000, total assets of 250,000, current liabilities of 20,000, and long-term liabilities of 50,000. How much of its existing current assets can the company use to acquire equipment without allowing its current ratio to decline below 2.0 to 1

Answers

Answer:

$60,000

Explanation:

The computation is shown below

Here the current liabilities is $20,000

And, the current ratio is 2:1

So, as we know that

The current ratio = Current assets ÷ current liabilities

So, the current asset is $40,000

= $40,000 ÷ 20,000

= 2.0 to 1

Now the amount required to purchase an equipment is

= $100,000 - $40,000

= $60,000

How can technological innovation help a company become globalized?

Answers

Answer:

First, globalization allows countries to gain easier access to foreign knowledge. Second, it enhances international competition—including as a result of the rise of emerging market firms—and this strengthens firms' incentives to innovate and adopt foreign technologies.

Explanation:

Developed manufacturing technologies have changed long-standing practices of productivity and occupation.

What is Technological Innovation?

Technology has helped us in overcoming the major limitations of globalization and international trade such as employment barriers, lack of ordinary ethical standards, transportation costs, and uncertainties in knowledge exchange, thereby transforming the marketplace.

Improved air and sea transport have greatly accelerated the worldwide flow of individuals and goods.

All this has both constructed and required more extraordinary interdependence among firms and polities.

When globalization authorizes countries to achieve easier admission to foreign knowledge.

Second, it enhances international competition including as a development of the rise of occurring market firms and this strengthens firms' incentives to innovate and embrace foreign technologies.

Find more information about Technological Innovation here:

https://brainly.com/question/19969274

Scott Bestor is an accountant for Westfield Company. Early this year, Scott made a highly favorable projection of sales and profits over the next 3 years for Westfield's hot-selling computer PLEX. As a result of the projections Scott presented to senior management, the company decided to expand production in this area. This decision led to dislocations of some plant personnel who were reassigned to one of the company's newer plants in another state. However, no one was fired, and in fact the company expanded its workforce slightly. Unfortunately, Scott rechecked his projection computations a few months later and found that he had made an error that would have reduced his projections substantially. Luckily, sales of PLEX have exceeded projections so far, and management is satisfied with its decision. Scott, however, is not sure what to do. Should he confess his honest mistake and jeopardize his possible promotion

Answers

Answer:

Scott Bestor should confess his honest mistake.

Explanation:

Two of most important attributes that are required from an accountant are integrity and trustworthiness.

Refusing to tell the management his honest mistake in order not jeopardize his possible promotion is a short-run gain to him. But confessing his honest mistake has a long run gain as this will preserve his integrity and trustworthiness forever. In addition, it is unethical and a sign of disloyalty for an accountant not to disclose all the information relevant to the company based on his position as an account.

Therefore, Scott Bestor should confess his honest mistake rather than sacrificing his integrity and trustworthiness as well as the ethic of his profession for a short-term gain (i.e. promotion).

Calculate free cash flow for 2017 for Monarch Textiles, Inc., based on the financial information that follows. Assume that all current liabilities are non-interest-bearing liabilities and that no fixed assets were sold or disposed of during 2017. (Enter your answer in 1000s.) Monarch Textiles, Inc. ($ thousands) Income statement Selected balance sheet items 2017 2016 2017 Sales 1,490 Current assets 430 595 Cost of sales 830 Net fixed assets 152 304 Operating expenses 165 Current liabilities 265 345 Depreciation 76 Interest expense 50 Earnings before taxes 369.00 Tax 147.60 Net income 221.40

Answers

Answer:

$34.39

Explanation:

EBIT = EBT + Interest Expense

EBIT = 369.00 + 50  

EBIT = $419

Tax Rate = Tax / EBT

Tax Rate = 147.60 / 419

Tax Rate = 0.352267

Tax Rate = 35.23%

Working Capital, 2017 = Current Assets, 2017 - Current Liabilities, 2017

Working Capital, 2017 = 595 - 345

Working Capital, 2017 = $250

Working Capital, 2016 = Current Assets, 2017 - Current Liabilities, 2017

Working Capital, 2016 = 430 - 265

Working Capital, 2016 = $165

Change in Working Capital = Working Capital, 2017 - Working Capital, 2016

Change in Working Capital = $250 - $165

Change in Working Capital = $85

Capital Expenditure = Net Fixed Assets, 2017 - Net Fixed Assets, 2016

Capital Expenditure = $304 - $152

Capital Expenditure = $152

Free Cash Flow = EBIT * (1 - Tax Rate) - Change in Working Capital - Capital Expenditure

Free Cash Flow = $419*(1- 35.23%) - $85 - $152

Free Cash Flow = $271.39 - $85 - $152

Free Cash Flow = $34.39

The free cash flow for 2017 for Monarch Textiles, Inc. is $34.39

What is free cash flow?

Free cash flow (FCF) is the money a company has left, after paying off its operating expenses and capital expenditures. ·

We will calculate the below to arrive at the free cash flow.

EBIT = EBT + Interest Expense

EBIT = 369.00 + 50  

EBIT = $419

Tax Rate = Tax / EBT

Tax Rate = 147.60 / 419

Tax Rate = 0.352267

Tax Rate = 35.23%

Working Capital, 2017 = Current Assets, 2017 - Current Liabilities, 2017

Working Capital, 2017 = 595 - 345

Working Capital, 2017 = $250

Working Capital, 2016 = Current Assets, 2017 - Current Liabilities, 2017

Working Capital, 2016 = 430 - 265

Working Capital, 2016 = $165

Change in Working Capital = Working Capital, 2017 - Working Capital, 2016

Change in Working Capital = $250 - $165

Change in Working Capital = $85

Capital Expenditure = Net Fixed Assets, 2017 - Net Fixed Assets, 2016

Capital Expenditure = $304 - $152

Capital Expenditure = $152

Free Cash Flow = EBIT * (1 - Tax Rate) - Change in Working Capital - Capital Expenditure

Free Cash Flow = $419*(1- 35.23%) - $85 - $152

Free Cash Flow = $271.39 - $85 - $152

Free Cash Flow = $34.39

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Policy is designed to shift the aggregate B) curve by the federal government changing its C) and D) policies. An E) fiscal policy would attempt to speed up the economy by shifting this curve to the F) . This would be accomplished by the government spending G) than it took received in taxes. Such a policy would result in a budgetary H) . Such a policy would be employed to get the economy out of a I) and fight the undesirable economic phenomenon of J).

Answers

Answer:

There are no options included so I will give the answers as beat I can based on economic knowledge.

FISCAL policy is designed to shift the aggregate DEMAND curve by the federal government changing its SPENDING and TAXATION policies.

The government can influence the economy through fiscal policy. It does this by changing its taxation and spending policies to either increase economic growth or reduce overheating.

An EXPANSIONARY fiscal policy would attempt to speed up the economy by shifting this curve to the RIGHT. This would be accomplished by the government spending MORE than it took received in taxes. Such a policy would result in a budgetary DEFICIT .

With an expansionary policy, the government would increase it's spending such that it would be more than the taxation imposed. With the government spending more than they brought it from taxes, a budget deficit will result.

Such a policy would be employed to get the economy out of a RECESSION and fight the undesirable economic phenomenon of UNEMPLOYMENT.

When the economy is going through a recession, the economy will be facing a decline so in order to renew growth, the government would spend more to bring it out of a decline and therefore prevent or reduce unemployment.

Peyton sells an office building and the associated land on May 1 of the current year. Under the terms of the sales contract, Peyton is to receive $2,408,400 in cash. The purchaser is to assume Peyton's mortgage of $1,445,040 on the property. To enable the purchaser to obtain adequate financing, Peyton is to pay the $28,901 in points charged by the lender. The broker's commission on the sale is $96,336. What is Peyton's amount realized

Answers

Answer:

$3,728,203

Explanation:

Particulars                                               Amount

Cash Received                                      $2,408,400

Add: Mortgage assume by purchaser $1,445,040

Less: Broker's commission                   ($96,336)

Less: Points paid by Peyton                 ($28,901)  

Amount realized                                    $3,728,203

if the market price of common stock increases substantially, bondholders with convertible bonds benefit. convertible bonds can be converted into common stock at the option of the issuing company. bondholders with convertible bonds receive interest on the bonds until conversion. convertible bonds sell at a higher price and pay a lower rate of interest than those without the conversion option.

Answers

Answer:

if the market price of common stock increases substantially,

bondholders with convertible bonds benefit.

Explanation:

A convertible bond is a fixed interest debt security.  The number of common shares into which it can be converted is predetermined at the issuance date. While the conversion can be done at certain time in the life of the bond, the decision to convert is usually at the discretion of the bondholder.  As investors, bondholders opt to convert when it would be most profitable.  This happens when the market price of the common stock increases.

According to the attraction-selection-attrition (ASA) theory, job applicants Question 27 options: do not typically pay much heed to organizational values when applying for work. with a variety of personal characteristics are preferred by organizations, resulting in a more heterogeneous organization. avoid employment in companies whose values seem incompatible with their own values. avoid other applicants if they are competing for the same jobs.

Answers

Answer:

avoid employment in companies whose values seem incompatible with their own values.

Explanation:

Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed. The unemployment rate is divided into various types, these include;

I. Natural Rate of Unemployment (NU).

II. Frictional unemployment rate (FU).

III. Structural unemployment rate (SU).

IV. Actual unemployment rate (AU).

V. Cyclical unemployment rate (CU).

The attraction-selection-attrition (ASA) theory was developed and introduced by Benjamin Schneider. This theory typically gives the reason why a business firm or organization looks and feels the way it does with respect to the employees and employers.

According to the attraction-selection-attrition (ASA) theory, job applicants avoid employment in companies whose values seem incompatible with their own values. Also, it states that job applicants are usually attracted to colleagues having similar assumptions and values.

Use the following information to prepare the July cash budget for Acco Co. It should show expected cash receipts and cash payments for the month and the cash balance expected on July 31.

a. Beginning cash balance on July 1: $74,000.
b. Cash receipts from sales: 25% is collected in the month of sale, 50% in the next month, and 25% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are May (actual), $1,920,000; June (actual), $1,420,000; and July (budgeted), $1,550,000.
c. Payments on merchandise purchases: 80% in the month of purchase and 20% in the month following purchase. Purchases amounts are: June (actual), $460,000; and July (budgeted), $740,000.
d. Budgeted cash payments for salaries in July: $260,000. Budgeted depreciation expense for July: $10,000.
e. Other cash expenses budgeted for July: $280,000.
f. Accrued income taxes due in July: $50,000.
g. Bank loan interest paid in July: $7,000.

Answers

Answer:

Acco Co.

Acco Co. Cash Budget for the month of July

Beginning balance                 $74,000

Expected cash receipts       1,575,000

Cash in hand                      $1,651,500

Payments:

Purchases                            $684,000

Salaries                                  260,000

Other cash expenses           280,000

Accrued income taxes            50,000

Bank loan interest                     7,000

Expected cash payments $1,281,000

Expected cash balance     $370,500

Explanation:

a) Data and Calculations:

a. Beginning cash balance on July 1: $74,000.

b. Cash receipts from sales:  May (acetual)   June (actual)  July (budgeted)

Sales                                        $1,920,000      $1,420,000    $1,550,000

25% month of sale                                                                       387,500

50% in the next month                                                                 710,000

25% in the second month                                                           480,000

Total expected cash collections in July                                 $1,575,000

c. Payments on merchandise purchases:

                                               June (actual)    July (budgeted)

Purchases                                 $460,000        $740,000

80% in the month                                               592,000

20% in the following month                                 92,000

Total payment for purchases                          $684,000

d. Salaries in July: $260,000

e. Other cash expenses $280,000

f. Accrued income taxes $50,000

g. Bank loan interest $7,000

Pamela was the agent in charge of distribution and collections for the Coble Dairy Products Cooperative. Thrower operated a grocery store and purchased dairy products from Coble. Pamela made false invoice sheets, showing delivery to Thrower of greater quantities than Thrower actually had ordered or received. Pamela collected from Thrower on the basis of these increased amounts, and then kept for herself the difference between the increased amounts and the amounts that should have been charged. When Thrower learned of this, he sued Coble for the excess payments he had made. Coble denied that Pamela was its agent in making excess collections. Will Thrower win?

Answers

Answer: Yes

Explanation:

This is an example of the law of agency. Since Pamela has been representing Coble in the past and engaging in transactions on behalf of Coble, any actions taking by Pamela is bidding on Coble which means that Thrower has the right to feel aggrieved with Coble and will win the case.

if a co worker asks for help with something but you're busy finishing a task, what should you say? A I have to finish this but I'm happy to help when I'm finished B I can't help you today C I'm busy can you ask someone else​

Answers

Answer:

A

Explanation:

it shows that you still value the co worker and are still willing to help so its up to them if they wait then that means its something you can do whatever that might be but if said co worker moves on to another for help that means that they couldn't wait or it was something that needed two people, a trivial task.

One of the skills that most leads to success in the workplace is:
A. keeping your thoughts to yourself.
B. ignoring unimportant regulations.
C. working well as part of a team.
D. choosing to work at any time you want.

Answers

C because you have to work with others in a work place to get something done but it really all depends on where you work at

There are different kinds of skills. One of the skills that most leads to success in the workplace is  working well as part of a team.

It is very essential to note that  when one work with others in a work place, it is good to depends on others sometimes and this can bee done through interaction.

Positive interactions in the workplace often increase good feelings, increase morale and boast work satisfaction.  Success in the workplace is not based on intelligent you are or your qualifications.

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Dinkins Inc. is considering disposing of a machine with a book value of $50,000 and an estimated remaining life of five years. The old machine can be sold for $15,000. A new machine with a purchase price of $150,000 is being considered as a replacement. It will have a useful life of five years and no residual value. It is estimated that variable manufacturing costs will be reduced from $70,000 to $45,000 if the new machine is purchased.
Determine the net differential increase or decrease in cost for the entire five years for the new equipment.

Answers

Answer:

$10,000 increase

Explanation:

The computation of the net differential increase or decrease in cost for the entire five years for the new equipment is as follows:

Particulars                     Keep the    Replace the   Effect on Cost  

                                   old mach.    new mach.  

Cost of 5 years             350,000     225000                     -125000.00  

Investment in new machine 0            150000.00                150000.00  

Salvage value of old machine 0    -15000.00                 -15000.00  

Increase in cost               350,000        360000.00            10000.00

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