Answer and Explanation:
The computation is shown below:
a. The stock price expected one year from now is
= Stock sells per share × (1 + growth rate)
= $19 × (1 + 0.03)
= $19.57
= $20
b. The required rate of return is
= Dividend ÷ current price + growth rate
= ($4 × 1.03) ÷ $19 + 0.03
= 24.68%
The above formulas should be applied to determine each part
And, the same would be relevant
Kenseth Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets.
Projected Plan
Benefit Assets
Obligation Value
2013 $2,000,000 $1,900,000
2014 2,400,000 2,500,000
2015 2,950,000 2,600,000
2016 3,600,000 3,000,000
The average remaining service life per employee in 2013 and 2014 is 10 years and in 2015 and 2016 is 12 years. The net gain or loss that occurred during each year is as follows: 2013, $280,000 loss; 2014, $90,000 loss; 2015, $11,000 loss; and 2016, $25,000 gain.
Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule.
Year
Minimum Amortization of Loss
2013 $
2014 $
2015 $
2016 $
Answer:
Year Minimum Amortization of Loss
2013 $0
2014 $3,000
2015 $ $6,000
2016 $1,000
Explanation:
Computation of the amount of net gain or loss amortized and charged to pension expense in each of the four years.
Corridor and Minimum Loss Amortization
Year 2013
Projected Benefit Obligation (a) $2,000,000
Plan Assets $1,900,000
10%Corridor 200,000
(10%×$2,000,000)
AccumulatedOCI (G/L) (a) $0
Minimum Amortization of loss $0
(a) As of the beginning of the year
Year 2014
Projected Benefit Obligation (a) $2,400,000
PlanAssets $2,500,000
10%Corridor 250,000
(10%×$2,500,000)
AccumulatedOCI (G/L) (a) $280,000
Minimum Amortization of loss $3,000 (b)
(b) ($280,000-$250,000)÷10 years
=$30,000÷10 years
=$3,000
Year 2015
Projected Benefit Obligation (a) $2,950,000
PlanAssets $2,600,000
10%Corridor 295,000
(10%×$2,950,000)
AccumulatedOCI (G/L) (a) $367,000(c)
Minimum Amortization of loss $6,000 (d)
(c) ($280,000-$3,000+$90,000)
=$367,000
(d) ($367,000-$295,000)÷12 years
=$72,000÷12 years
=$6,000
Year 2016
Projected Benefit Obligation (a) $3,600,000
PlanAssets $3,000,000
10%Corridor 360,000
(10%×$3,600,000)
AccumulatedOCI (G/L) (a) $372,000(e)
Minimum Amortization of loss $1,000 (f)
(e) $367,000-$6,000+$11,000
=$372,000
(f) ($372,000-$360,000)÷12 years
=$12,000 ÷12 years
=$1,000
Therefore the amount of net gain or loss amortized and charged to pension expense in each of the four years are:
Year Minimum Amortization of Loss
2013 $0
2014 $3,000
2015 $ $6,000
2016 $1,000
On January 1, 2022, Blue Company issued $3,400,000 face value, 7%, 10-year bonds at $3,650,227. This price resulted in a 6% effective-interest rate on the bonds. Blue uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on each January 1. (a) Prepare the journal entries to record the following transactions. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) 1. The issuance of the bonds on January 1, 2022. 2. Accrual of interest and amortization of the premium on December 31, 2022. 3. The payment of interest on January 1, 2023. 4. Accrual of interest and amortization of the premium on December 31, 2023.
Answer and Explanation:
The journal entries are shown below:
On 2022
For Jan 1
Cash Dr $3,650,227
To Premium on bond payable $250,277
To bond payable $3,400,000
(Being bond payable is issued for cash)
For Dec 31
Interest expense ($3,650,227 × 6%) $219,014
Premium on bond payable $18,986
To Interest payable ($3,400,000 ×7%) $238,000
(Being interest expense is recorded)
On 2023
For Jan 1
Interest payable $238,000
To Cash $238,000
(Being cash paid)
Interest expense ($3,650,227 - $18,986) × 6%) $217,874
Premium on bond payable $20,126
To Interest payable ($3,400,000 ×7%) $238,000
(Being interest expense is recorded)
A pollution tax would be preferable to a system of transferable permits when... a. the marginal costs of damages are steep and the marginal costs of pollution reduction are relatively stable. b. the marginal costs of damages are steep and the marginal costs of pollution reduction are steep. c. the marginal costs of damages are relatively stable and the marginal costs of pollution reduction are relatively stable. d. the marginal costs of damages are relatively stable and the marginal costs of pollution reduction are steep. e. the marginal costs of damages are elastic and the marginal costs of pollution reduction are also elastic.
Answer:
a. the marginal costs of damages are steep and the marginal costs of pollution reduction are relatively stable.
Explanation:
Pollution can be defined as the physical degradation or contamination of the environment through an emission of harmful, poisonous and toxic chemical substances.
Offset trading refers to a type of trading system that is typically designed for the realization of more efficient pollution control.
This ultimately implies that, an offset trading is a strategic program that allows emerging business firms to pay existing business firms in order to significantly reduce their emissions or pollutants below a specific standard.
Free market in tradable pollution permits simply means giving manufacturing companies and individuals the legal right to pollution of the environment. For example, XYZ company is purchasing the permit of 500 units of carbon dioxide (CO2) pollution annually, this simply means it is permitted to pollute the environment by 500 units of CO2 annually.
Additionally, a free market in tradable pollution permits has some sort of benefits as companies can resell their unused permits or devise a cheaper means of reducing pollution. It also compensate companies that significantly reduces its pollution of the environment.
A pollution tax can be defined as a type of tax imposed on business firms that causes pollution and damages to the environment. It is also referred to as Pigovian tax which is a tax on goods with negative externality.
Hence, tradable permits when compared with pollution tax are likely to result in less inefficiency, when the marginal costs of damages are steep and the marginal costs of pollution reduction are relatively stable.
The Chicken Union has experienced bad debt losses of 5% of credit sales in prior periods. At the end of the year, the balance of Accounts Receivable is $124,000 and the Allowance for Doubtful Accounts has an unadjusted credit balance of $1,700. Net credit sales during the year were $198,000. Using the percentage of credit sales method, what is the estimated Bad Debt Expense for the year
Answer:
$9,900
Explanation:
With regards to the above, the percentage of credit sales method estimates bad debt expense by multiplying historical percentage of bad debt losses by the current period's credit sales.
Bad debt expense = Net credit sales × Bad debt loss rate
Bad debt expense = $198,000 × 0.05
Bad debt expense = $9,900
Therefore, estimated bad debt expense for the year is $9,900
ABM, Kaizen Costing Baker, Inc., supplies wheels for a large bicycle manufacturing company. The bicycle company has recently requested that Baker decrease its delivery time. Baker made a commitment to reduce the lead time for delivery from seven days to one day. To help achieve this goal, engineering and production workers had made the commitment to reduce time for the setup activity (other activities such as moving materials and rework were also being examined simultaneously). Current setup times were 12 hours. Setup cost was $600 per setup hour. For the first quarter, engineering developed a new process design that it believed would reduce the setup time from 12 hours to nine hours. After implementing the design, the actual setup time dropped from 12 hours to seven hours. Engineering believed the actual reduction was sustainable. In the second quarter, production workers suggested a new setup procedure. Engineering gave the suggestion a positive evaluation, and they projected that the new approach would save an additional six hours of setup time. Setup labor was trained to perform the new setup procedures. The actual reduction in setup time based on the suggested changes was four hours.
Required:
1. What kaizen setup standard would be used at the beginning of each quarter?
2. How much non-value-added cost was eliminated by the end of two quarters?
Answer and Explanation:
the computation is shown below:
1. Setup Time standard
Here the first quarter standard would be considered i.e. 9 hours so we dont take the actual setup time
The Second quarter is 1 hour that denotes the Expected setup time
2. The Total non-value cost which got eliminated is
Since, The setup time was Decrease from 12 hours to 3 hours.
So, the Total non value added cost eliminated is
= $600 × (12 - 3)
= $600 × 9
= $5,400
The following data are accumulated by Geddes Company in evaluating the purchase of $150,000 of equipment, having a four-year useful life:
Net Income Net Cash Flow Year
1 $42,500 $80,000 Year
2 27,500 65,000 Year
3 12,500 50,000 Year
4 2,500 40,000
Present Value of $1 at Compound Interest
Year 6% 10% 12% 15% 20%
1 0.943 0.909 0.893 0.870 0.833
2 0.890 0.826 0.797 0.756 0.694
3 0.840 0.751 0.712 0.658 0.579
4 0.792 0.683 0.636 0.572 0.482
5 0.747 0.621 0.567 0.497 0.402
6 0.705 0.564 0.507 0.432 0.335
7 0.665 0.513 0.452 0.376 0.279
8 0.627 0.467 0.404 0.327 0.233
9 0.592 0.424 0.361 0.284 0.194
10 0.558 0.386 0.322 0.247 0.162
a. Assuming that the desired rate of return is 15%, determine the net present value for the proposal.
b. Would management be likely to look with favor on the proposal?
Answer:
$24,460.50
Yes. this is because the NPV is positive
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
Cash flow in year 0 = $-150,000
Cash flow in year 1 = $80,000
Cash flow in year 2 = $65,000
Cash flow in year 3 = $50,000
Cash flow in year 4 = $40,000
I = 15%
NPV = $24,460.50
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Pension Plan Entries Yuri Co. operates a chain of gift shops. The company maintains a defined contribution pension plan for its employees. The plan requires quarterly installments to be paid to the funding agent, Whims Funds, by the fifteenth of the month following the end of each quarter. Assume that the pension cost is $157,100 for the quarter ended December 31.
Journalize the entry to record the accrued pension liability on December 31.
Answer and Explanation:
The journal entry is shown below:
On Dec 31
Pension expense $157,100
To Unfunded pension liability $157,100
(Being the quarterly pension cost is recorded)
here the pension expense is debited as it increased the expense and credited the unfunded pension liability as it also increased the liabilities
So, the above journal entry should be recorded
Galla Inc. needs to determine a price for a new product. Galla desires a 25% markup on the total cost of the product. Galla expects to sell 8,020 units. Additional information is as follows: Variable product cost per unit $ 31 Variable administrative cost per unit 41 Total fixed overhead 48,100 Total fixed administrative 16,060 Using the total cost method what price should Galla charge
Answer:
Selling price= $100
Explanation:
Giving the following information:
Variable product cost per unit $31
Variable administrative cost per unit 41
Total fixed overhead 48,100
Total fixed administrative 16,060
Markup= 25%
Number of units= 8,020
First, we need to calculate the unitary fixed cost:
Total fixed cost= 48,100 + 16,060= $64,160
Unitary total fixed cost= 64,160/8,020= $8
Now, the total unitary cost:
Total unitary cost= 8 + 31 + 41= $80
Finally, the selling price:
Selling price= 80*1.25
Selling price= $100
which are possible employers of the financial career cluster? check ALL that apply
private company
government
nonprofit organization
bank
stock market
Answer:
private company
government
nonprofit organization
bank
Explanation:
George, an unskilled worker in the 1930s, toiled 10 hours a day on an assembly line. His hours were long, his wages were low, and his working conditions were unsafe and unpleasant. George would probably have been more sympathetic to the views of John L. Lewis than to those of Samuel Gompers.
a. True
b. False
Answer: True
Explanation:
The main reason that can be attributed to AFL not recognizing CIO when it was still growing was due to the fact that there was a disagreement over the inclusion of craft unions and industrial unions in the AFL which Samuel Gompers was the leader and membership were only to skilled workers.
Later, John Lewis, whom was the president of United Mine Workers, made a proposal stating that unskilled workers should be included in the industrial unions and this was rejected which led to Lewis breaking with AFL and then went to form CIO.
Franchising is typically done by
O cooperatives.
O partnerships.
O LLC
O corporations
Answer:A
Explanation:
Franchising is typically done by D. corporations.
What is franchising?Franchising is a business arrangement in which franchisees are granted licenses by the franchisors to use their trademarks or business processes in carrying out their businesses.
Franchising can occur with these businesses:
Job franchiseProduct franchiseBusiness format (or process) franchise.Thus, franchising is typically done by D. corporations.
Learn more about franchising at https://brainly.com/question/3687222
Sheffield Corp. had accounts receivable of $250,000 on January 1, 2019. The only transactions that affected accounts receivable during 2019 were net credit sales of $5,225,000, cash collections of $5,155,000, and accounts written off of $20,000.
Answer:
300000is the answer make me branlist
"Bennett Co. has a potential new project that is expected to generate annual revenues of $247,700, with variable costs of $137,600, and fixed costs of $56,500. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $16,500. The annual depreciation is $22,000 and the tax rate is 40 percent. What is the annual operating cash flow?"
Answer:
$40,960
Explanation:
The computation of the operating cash flow is shown below;
As we know that
Annual Operating Cash Flow is
= EBIT × (1 - Tax Rate) + Depreciation Expenses
Here,
Earnings Before Interest & Tax [EBIT] = Revenues - Variable Cost - Fixed Costs - Depreciation Expenses
= $247,700 - $137,600 - $56,500 - $22,000
= $31,600
Now
Annual Operating Cash Flow = EBIT × (1 - Tax Rate) + Depreciation Expenses
= $31,600 × (1 - 0.40) + $22,000
= [$31,600 × 0.60] + $22,000
= $18,960 + 22,000
= $40,960
On December 31, 2018, the end of its first year of operations, Wildhorse Associates owned the following securities that are held as long- term investments.
Common Stock Shares Cost
C Co. 1,050 $50,400
D Co. 5,090 38,175
E Co. 1,199 25,179
On this date, the total fair value of the securities was equal to its cost. The securities are not held for influence or control over the investees. In 2019, the following transactions occurred.
July 1 Received $2 per share semiannual cash dividend on D Co. common stock.
Aug. 1 Received $0.50 per share cash dividend on C Co. common stock.
Sept. 1 Sold 1,020 shares of D Co. common stock for cash at $9 per share.
Oct. 1 Sold 274 shares of C Co. common stock for cash at $54 per share.
Nov. 1 Received $1 per share cash dividend on E Co. common stock.
Dec. 15 Received $0.50 per share cash dividend on C Co. common stock.
31 Received $2.30 per share semiannual cash dividend on D Co. common stock.
At December 31, the fair values per share of the common stocks were C Co. $47, D Co. $7.30, and E Co. $25. These investments should be classified as long-term.
Requried:
Journalize the 2019 transactions
Answer:
July 1
Dr Cash $10,180
Cr Dividend Revenue $10,180
Aug. 1
Dr Cash $525
Cr Dividend Revenue $525
Sept. 1
Dr Cash $9,180
Cr Gain on Sale of Stock Investments $1,530
Cr Stock Investments $7,650
Oct-01
Dr Cash $14,797
Cr Stock Investments $13,152
Cr Gain on Sale of Stock Investments $1,645
Nov 1
Dr Cash $1,199
Cr Dividend Revenue $1,199
Explanation:
Preparation of the journal entries
July 1
Dr Cash (5,090 X $2) $10,180
Cr Dividend Revenue $10,180
Aug. 1
Dr Cash (1,050 X $0.50) $525
Cr Dividend Revenue $525
Sept. 1
Dr Cash [(1,020 X $9) ] $9,180
Cr Gain on Sale of Stock Investments $1,530
($9,180-$7,650)
Cr Stock Investments (274 X $7.5) $7,650
(38,175/5,090=$7.5)
Oct-01
Dr Cash [(274 X $54)] $14,797
Cr Stock Investments (274 X $48) $13,152
($50,400/1,050=$48)
Cr Gain on Sale of Stock Investments $1,645
($14,797-$13,152)
Nov 1
Dr Cash $1,199
Cr Dividend Revenue $1,199
(1,199*$1)
A product has annual demand of 10,000 units. The plant manager wants production to follow a four-hour cycle. Based on the following data, what holding cost per unit per year will enable the desired production cycle? d = 40 per day (250 days per year), p = 200 units per day, S = $7.20 per order, and Q = 20 (demand for four hours, half a day). $18.00 $40.00 $400.00 $45.00 $450.00
Answer:
Based on the data, the holding cost per unit per year that will enable the desired production cycle is:
= $18.00.
Explanation:
a) Data and Calculations:
Annual demand of the product = 10,000 units
Demand per day, d = 40 (10,000/250) units
Given days in a year = 250 days
Production, p per day = 200 units
Ordering cost, S = $7.20 per order
Q (demand for four hours or half a day) = 20 units (40/2) following a four-hour cycle
Number of orders = 10,000/20 = 500
Total ordering costs = $3,600 (500 * $7.20)
Since EOQ = Q = 20 units
20 = Square root of (2*D*S)/H
Where:
D = Annual demand
S= Ordering cost
H = Holding cost
20 = Square root of (2 * 10,000 * $3,600)/H *10,000
20 = Square root of 72,000,000/(H * 10,000)
Substituting H with $18
= Square root of 72,000,000/180,000
= Square root of 400
= 20
REITs pay dividends in order to retain their favorable tax status. As the next chapter on stock explains, corporate dividends are made from earnings. REIT dividends often are not made from earnings but the distributions are made from funds from operations (FFO). REIT accounting earnings are adjusted for noncash expenses such as deprecia-tion to determine funds from operations. In addition, a REIT may sell a property and distribute the proceeds. For these reasons, financial analysts often use FFO instead of earnings to analyze a REIT. Distributions are often more highly correlated with per-share funds from operation than they are with earnings per share (EPS). Consider the following FFO and EPS for Washington Real Estate Trust:
Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Distributions $1.16 1.23 1.31 1.39 1.47 1.55 1.60 1.64 1.68 1.72 1.73 1.74 1.74 1.47 1.20 1.20
FFO
$1.57 1.79 1.96 1.97 2.04 2.05 2.07 2.12 2.31 2.12 2.06 1.96 1.95 1.84 1.69 1.51
EPS
$1.24 1.26 1.38 1.32 1.13 1.09 1.84 0.88 1.34 0.67 0.71 0.60 1.58 0.35 0.55 1.67
To verify that the dividend distribution is more strongly correlated with FFO than with EPS, compute the correlation coefficients relating the distributions to FFO and to EPS.
Answer:
Correlation coefficients relating the distributions to FFO = 0.8393
Correlation coefficients relating the distributions to EPS = –0.0880
Explanation:
Let X represents distributions, Y represents FFO, and, Z represents EPS.
Note: See the attached excel file for the calculations of Means of X, Y and Z as well as other values.
Therefore, we have:
Correlation coefficients relating the distributions to FFO = (Total of (X - Mean of X) * (Y - Mean of Y)) / ((Total of (X - Mean of X)^2) * (Total of (Y - Mean of Y)^2))^0.5 = 0.7529 / (0.8554 * 0.9408)^0.5 = 0.8393
Correlation coefficients relating the distributions to EPS = (Total of (X - Mean of X) * (Z - Mean of Z)) / ((Total of (X - Mean of X)^2) * (Total of (Z - Mean of Z)^2))^0.5 = –0.1391 / (0.8554 * 2.9200)^0.5 = –0.0880
ABC Company rents its extra office space to XYZ Company for $600 per month. On November 1, 2020, ABC Company received $3,600 rent in advance from XYZ Company for the months of November 2020, December 2020, January 2021, February 2021, March 2021, and April 2021. The adjusting entry on December 31, 2020 (the end of the fiscal year) would include:
Answer:
Debit : Rent Paid in Advance $1,200
Credit : Rent Income $1,200
Explanation:
The adjusting entry on December 31, 2020 would include:
Debit : Rent Paid in Advance $1,200
Credit : Rent Income $1,200
Patrick and Mary wanted to become homeowners back in 2008 and applied for a loan from a mortgage lender. Patrick and Mary's combined income was $50,000 a year and their credit history was poor. They were approved for a mortgage loan but couldn't make the payments. This is an example of a result of _______.
The information given in the question is an example of purchasing power.
Purchasing power simply refers to goods and services that a person can be able to buy with a given amount of money that the person has.In this case, they have a combined income of $50,000 but this wasn't enough to purchase the house. This shows that they had a lower purchasing power.Assuming the house was sold for a lesser amount than $50,000, then it'll be affordable for them.Read related link on:
https://brainly.com/question/15176955
A manager has up to $190,000 available to invest in new construction equipment for the company. The manager must purchase a new dump truck and does not have a need for a second dump truck. The dumping trailer can only be purchased along with a dump truck. From the following list of possible equipment, identify all of the mutually exclusive alternatives and identify which of the alternatives are not acceptable.
No. Description Cost ($)
1 Loader 125,000
2 Dump Truck 170,000
3 Dump Truck 265,000
4 Dumping Trailer for the Dump Truck 25,000
Answer:
a. Mutually exclusive alternatives are
No. Description Cost ($)
2 Dump Truck 170,000
3 Dump Truck 265,000
b. The alternatives that are not acceptable are:
No. Description Cost ($)
1 Loader 125,000
4 Dumping Trailer for the Dump Truck 25,000
Explanation:
a. Mutually exclusive alternatives imply alternatives that cannot occur together. In relation to this question, since the manager must purchase a new dump truck and does not have a need for a second dump truck, that means that two trucks are mutually exclusive. Therefore, mutually exclusive alternatives are
No. Description Cost ($)
2 Dump Truck 170,000
3 Dump Truck 265,000
b. Alternative are not acceptable if they do not meet the conditioned specified. In relation to this question, since the dumping trailer can only be purchased along with a dump truck it means that Dumping Trailer for the Dump Truck is not acceptable. Also, since Loader is not a trcuk, that means it is not also acceptable. Therefore, the alternatives that are not acceptable are:
No. Description Cost ($)
1 Loader 125,000
4 Dumping Trailer for the Dump Truck 25,000
Firm Aay operates a pool hall in Boom Town. Business has been very profitable. However, there are dark clouds on the horizon. Firm Bee is considering entering the pool hall market in Boom Town. The profits of Aay are 15 if it is a monopoly; if Bee enters and Aay accommodates and shares the market the duopoly profits are 5 for each firm; is Bee enters and Aay launches a price war, both firms earn -1.
a) Draw the game tree for this scenario and determine the subgame perfect equilibrium (SPE).
b) What if launching a price war involves not only charging a low price, but printing flyers to inform the public of the great deals available? If there is a price war, both firms print flyers, and the net result of the price war is -1 for each firm (that is, the -1 takes into account the cost of printing the flyers.) Assume that Aay can have flyers printed up prior to Bee's entry decision and that the printing cost is $8. Draw the game tree for this scenario and determine the subgame perfect equilibrium.
c) What does your answer to (b) imply about the relationship between sunk costs, firstmover advantages, and entry deterrence? plz type down u answer
Solution :
a). The game tree is attached below. In the game tree, the (SPE) or subgame perfect equilibrium is for Bee firm to enter and Aay firm to accommodate.
b). If launching the price war consists of not only charging low price, but also printing flyers in order to inform the public.
The game tree is attached below.
In the game tree, it can be explained that :
Aay has a priority printing, cost of printing is 8. If he prints and Bee does not enter equilibrium will be (15-8) = 7, 0. Profit if Bee does not enter.
It is given that if Aay enters and Bee enters, there will be price war = -1, -1
or they will accommodate = (5, 8, 5). Here the profit while accommodating is 5 and printing cost is 3. Therefore, (-3, 5)
c). Sunk cost such as that of printing allows Aay to make a credible threat to engage in a prior war and thus deny entry of Bee.
Now when he had first move advantage and make investment in flyers he could make a credible threat and deter entry of Bee. If he did not have the advantage, his treat would not have much of an effect.
Erik Cartman just took a new position with Colorado Research, Inc. Erik’s first customer, the president of a local bank, wanted a bank image study to be conducted measuring not only the client’s banks’ image, but that of his competitors as well. In designing the research project, Erik talked to several of his friends one night about how they viewed their banks. Erik charged the client for this and billed it as "Exploratory Research NFocus Group." The next day Erik tried to remember most of what his friends had told him. Some of the issues were "closeness to home" of branch locations, "cool online banking," and "friendly tellers." Erik took these issues, made up some of his own and put them into a semantic differential scale format. After the research study, Erik wrote a report and referred to the semantic differential scale he devised as a "Standard Marketing Research Scale to Measure the Construct of Bank Image." What Erik did was:___________
A) correct; he used exploratory research to generate most of the items for his
measurement of bank image
B) correct; although he used some of his own opinions, they were based upon experience and he did make use of a focus group
C) incorrect; the measurement of bank image was incorrect as bank image should be measured only by using Likert scales
D) incorrect; we do not know if the scale Mr. Cartman devised was valid or reliable, but he was unethical in presenting the measurement as"standard marketing research"
E) correct; Erik saved considerable time and money by creating his own measurement of the construct
Answer: D. Incorrect; we do not know if the scale Mr. Cartman devised was valid or reliable but he was unethical
in presenting the measurement as "standard marketing research.
Explanation:
Based on the information given in the question, the correct option is D "we do not know if the scale Mr. Cartman devised was valid or reliable but he was unethical in presenting the measurement as "standard marketing research".
He was unethical as he didn't tell his friends that he was collecting the information from them for a research purpose. Also, making up some of the issues regarding his research is not appropriate.
Therefore, the correct option is D.
The Bountiful Bakery is considering hiring another pastry chef. The bakery knows the average product of its chefs currently is 15 dozen croissants per day. It also believes that the next chef hired will produce an extra 12 dozen croissants per day. A dozen croissants sell for $30. The bakery should hire another worker:
Answer: only if the new chef's daily wage is $360 or less.
Explanation:
It should be noted that the decision with regards to hiring a new chef will be made by the company when the marginal value product is more than the marginal cost.
The marginal value product here will be: = (12 × $30) = $360. Therefore, The bakery should hire another worker only if the new chef's daily wage is $360 or less.
Define your seven weakness and seven strengths with reason
Answer:
weakness
1 i am very sensitive because small things make me feel very bad
2 i cannot say no to anyone because i care about people thought
3 i cannot control my anger i have anger issue
4 i am very extra kind to everyone so many people takes advantage
5 i keep expecting many things from people and result make me sad
6 i cant be angry for a long time it is very easy for making me happy
7 i dont want to share my close person with other
The inflation rate in Great Britain is expected to be 4% per year, and the inflation rate in Switzerland France is expected to be 6% per year. If the current spot rate is £1 = SF 12.50, what is the expected spot rate in two years? A) SF12.99 B) SF 10.25 C) SF 11.44 D) SF 8.50 E) None of the above
Answer:
The spot rate in two years time = SF 12.99
Explanation:
The purchasing power parity states that the relationship between the current and future spot rate between two currencies can be linked to the differences in the expected inflation rate between the currency.
This relationship can be expressed as follows:
S1= So× (1 + hc)/(1 + hb)
So= Current spot rate, Hc- inflation rate in Switzerland, Inflation rate in Britain
Spot rate in a year's time
S1= 12.50, Hc=6%, Hc=4%
S1= 12.50× (1.06/1.04)
S1=12.74
Spot rate in two year's time
S1= 12.74× (1.06/1.04)
S1= 12.99
The spot rate in two years time = SF 12.99
The following transactions occurred at several different businesses and are not related. Post the following transactions into the appropriate T-accounts
a. Serena Hamilton, an owner, made an additional investment of $42,000 in cash.
b. A firm purchased equipment for $20,000 in cash.
c. A firm sold some surplus office furniture for $3,400 in cash.
d. A firm purchased a computer for $3,700, to be paid in 60 days.
e. A firm purchased office equipment for $22,400 on credit.
f. The amount is due in 60 days. James Taylor, owner of Taylor Travel Agency, withdrew $12,000 of his original cash investment.
g. A firm bought a delivery truck for $38,500 on credit; payment is due in 90 days.
h. A firm issued a check for $7,200 to a supplier in partial payment of an open account balance
Answer:
T-accounts:
a. Cash Account
Account Titles Debit Credit
Common Stock $42,000
Common Stock
Account Titles Debit Credit
Cash $42,000
b. Equipment
Account Titles Debit Credit
Cash $20,000
Cash
Account Titles Debit Credit
Equipment $20,000
c. Cash
Account Titles Debit Credit
Office Furniture $3,400
Office Furniture
Account Titles Debit Credit
Cash $3,400
d. Computer
Account Titles Debit Credit
Accounts payable $3,700
Accounts payable
Account Titles Debit Credit
Computer $3,400
e. Office Equipment
Account Titles Debit Credit
Accounts payable $22,400
Accounts payable
Account Titles Debit Credit
Office Equipment $22,400
f. James Taylor, Capital
Account Titles Debit Credit
Cash $12,000
Cash
Account Titles Debit Credit
James Taylor,
Capital $12,000
g. Delivery Truck
Account Titles Debit Credit
Accounts payable $38,500
Accounts payable
Account Titles Debit Credit
Delivery Truck $38,500
h. Accounts payable
Account Titles Debit Credit
Cash $7,200
Cash
Account Titles Debit Credit
Accounts payable $7,200
Explanation:
a) Data and Analysis:
a. Cash $42,000 Common Stock $42,000
b. Equipment $20,000 Cash $20,000
c. Cash $3,400 Office Furniture $3,400
d. Computer $3,700 Accounts payable $3,400
e. Office Equipment $22,400 Accounts payable $22,400
f. James Taylor, Capital $12,000 Cash $12,000
g. Delivery Truck $38,500 Accounts payable $38,500
h. Accounts payable $7,200 Cash $7,200
A company is planning to purchase a machine that will cost $31,200 with a six-year life and no salvage value. The company uses straight-line depreciation. The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the accounting rate of return for this machine
Answer:
44.87%
Explanation:
Note: Missing word have been attached as picture below
Average Investment = (Initial Investment + Scrap Value) / 2
Average Investment = [$31,200 + $0] / 2
Average Investment = $31,200/2
Average Investment = $15,600
Accounting Rate of Return = Net Income/Average Investment*100
Accounting Rate of Return = $7,000/$15,600 * 100
Accounting Rate of Return = 0.44871795 * 100
Accounting Rate of Return = 44.87%
Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2017, the following data are available.
1. Sales: 20,000 units quarter 1; 22,000 units quarter 2.
2. Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3%.
3. Fixed costs per quarter: sales salaries $10,700, office salaries $6,480, depreciation $4,520, insurance $1,990, utilities $900, and repairs expense $650.
4. Unit selling price: $25.
Prepare a selling and administrative expense budget by quarters for the first 6 months of 2017.
Answer:
Budgeted Selling and Administrative Expense are:
Quarter 1 = $75,240
Quarter 2 = $80,240
Six Months = $155,480
Explanation:
Note: See the attached excel file for the selling and administrative expense budget by quarters for the first 6 months of 2017.
In the attached excel file, the following calculations is done:
Quarter 1 sales revenue = Quarter 1 units * Unit selling price = 20,000 * $25 = $500,000
Quarter 2 sales revenue = Quarter 2 units * Unit selling price = 22,000 * $25 = $550,000
From the attached excel file, Budgeted Selling and Administrative Expense are:
Quarter 1 = $75,240
Quarter 2 = $80,240
Six Months = $155,480
Nash Company purchased a computer for $8,160 on January 1, 2019. Straight-line depreciation is used, based on a 5-year life and a $1,020 salvage value. On January 1, 2021, the estimates are revised. Nash now feels the computer will be used until December 31, 2022, when it can be sold for $510. Compute the 2021 depreciation. (Round answer to 0 decimal places, e.g. 45,892.) Depreciation expense, 2021 $
Answer:
$2,397
Explanation:
Straight line method charges a fixed amount of depreciation
Depreciation Charge = (Cost - Residual Value) ÷ Estimated useful life
therefore,
Annual depreciation charge
2019
Depreciation Charge = $1,428
2020
Depreciation Charge = $1,428
2021
Depreciation Charge = ($8,160 - $1,428 - $1,428 - $510) ÷ 2
= $2,397
therefore,
Depreciation expense, 2021 is $2,397
HELPPPPP please!!
Why is presentation so important to the success of a speech?
A.
Because it is rude not to dress well for a speech
B.
Because it conveys the character of the speaker
C.
Because it is important to appear professional at all times
D.
Because the words aren't important
Answer:
B
Explanation:
I'm taking public speaking in college now dress is important because it conveys the character of the speaker.
A single lease expense is recognized on the income statement for an operating lease. a finance lease. both a finance lease and an operating lease. neither a finance lease or an operating lease.
Answer:
an operating lease.
Explanation:
A lease refers to a contract that rents a land or other properties to another person for a specified period of time and amount of money.
A lease right can be defined as an approval granted by a lessor (landlord) to a lessee for the use of a property such as land over a specific period of time.
A lease for a period of 24 months must be in writing between the lessor (landlord) and the lessee (tenant) to be enforceable by a competent court of law
Generally, a single lease expense is recognized on the income statement for an operating lease.
A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.
Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.
Hence, activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as operating activities.