If the banking system as a whole has reserves equal to $547 and the reserve ratio is 14% then what is the value of deposits, assuming banks hold no excess reserves? Enter a whole number with no dollar sign. Round to the nearest whole number.

Answers

Answer 1

The value of deposits, assuming banks hold no excess reserves is approximately $3,907.

The act of putting cash or other assets into a bank account or another financial institution for storage, ease of access or investment purposes is referred to as a deposit. It entails putting money in a bank or other financial institution with the understanding that it will be held securely and made available for withdrawal or use as required.

reserve ratio = 14% (or 0.14)

banking system has reserves = $547

Reserves = Reserve Ratio × Deposits

$547 = 0.14 × Deposits

divide both sides of the equation by 0.14

Deposits = $547 / 0.14

Deposits ≈ $3,907

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Related Questions

Project A and B are mutually exclusive. Project A has a 5 year life and project B has a 7 year life. The cost of capital for both projects is 10%. The NPV of project A is $13.72 million while the NPV of Project B is $20 million. What is the Equivalent Annual Annuity for Project B?

Answers

Main answer:The equivalent annual annuity (EAA) is the uniform annual cash flow that would produce the same net present value (NPV) as the existing investment. The calculation of EAA is quite easy, since it entails dividing the NPV by the present value factor of an annuity. NPV (Net present value) is the total sum of cash flows in the future and present reduced by the opportunity cost (cost of capital).

The cost of capital is used as the discount rate. The EAA of Project B is $3.07 million.Explanation:Given: NPV of Project A is $13.72 million and NPV of Project B is $20 million. The cost of capital for both projects is 10%. The life of project A is 5 years, and that of project B is 7 years.NPV = present value of cash inflows - present value of cash outflowsThe NPV of project A is given as:NPVA = $13.72 millionThe NPV of project B is given as:NPVB = $20 millionTo calculate the EAA of project B,

we can use the following formula:EAA = NPV / Present value factor of annuityEAA = NPV / [(1 - (1 + r)^-n) / r]where r = cost of capital, and n = life of the project.The present value factor of annuity can be calculated as:(1 - (1 + r)^-n) / rwhere r = 10%, and n = 7 yearsPresent value factor of annuity = (1 - (1 + 0.1)^-7) / 0.1 = 4.8689Using this, we can calculate the EAA of project B:EAA = $20 million / 4.8689 = $3.07 millionTherefore, the equivalent annual annuity for Project B is $3.07 million.

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Describe the potential advantages and disadvantages of global
expansion. Are the pros and cons the same for small firms as they
are for large once? Are they the same for service firms and
manufacturer

Answers

Potential advantages and disadvantages of global expansion advantages of global expansion include reaching new customers, accessing new markets, diversifying risks, and acquiring new resources and knowledge. Potential disadvantages of global expansion include political

the main advantages and disadvantages Advantages of global expansion:1. Increased market potential: Global expansion provides access to new customers and markets that are not available in the domestic market. The increase in the potential customer base can lead to increased revenues and profits.2. Diversification of risks: Global expansion allows firms to diversify risks across different markets. This can reduce the impact of economic and political changes in one market on the firm's overall performance.3. Access to new resources and knowledge: Global expansion provides access to new resources and knowledge that are not available in the domestic market. For example, a firm might be able to source raw materials more cheaply from overseas or access new technologies that are not available in the domestic market.4. Competitive advantage: Global expansion can provide a competitive advantage over rivals who are not operating in international markets

firm might be able to offer lower prices or higher quality products due to economies of scale. Disadvantages of global expansion:1. Political and legal risks: Global expansion exposes firms to political and legal risks that are not present in the domestic market. For example, a change in government policy or a new regulation could have a significant impact on a firm's operations.2. Cultural differences: Global expansion requires firms to operate in different cultural environments that can be very different from the domestic market. This can lead to misunderstandings and the communication problems.3. Language barriers: Global expansion requires firms to operate in different languages. This can be challenging, especially if the firm does not have employees who are fluent in the local language.4. Increased competition: Global expansion exposes firms to increased competition from local and international rivals. Are the pros and cons the same for small firms as they are for large ones No, the pros and cons are not the same for small firms as they are for large ones. Small firms may not have the resources or expertise to compete in international markets, while large firms may be better equipped to handle the risks and challenges of global expansion. they the same for service firms and manufacturers , the pros and cons are not the same for service firms and manufacturers. Service firms may face different cultural and language barriers than manufacturers, while manufacturers may face different political and legal risks than service firms.Explanation:In summary, global expansion can provide firms with many advantages, such as increased market potential, diversification of risks, access to new resources and knowledge, and competitive advantage. However, global expansion also exposes firms to many risks and challenges, such as political and legal risks, cultural differences, language barriers, and increased competition. The pros and cons of global expansion are not the same for small firms as they are for large ones, or for service firms as they are for manufacturers.

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An electronics company uses the activity-based costing system to ascertain the cost per unit of its tablets. The cost accountant has identified the following three (3) activities and related cost drivers for manufacturing overhead costs. Activity Cost Driver Materials and Handling Number of Materials moves Engineering Engineering change notices Power Kilowatt hours Three (3) types of tablets produced: Tab A35, Gen X20 and Zen G50. The following information concerns each product for the month of June 2019: Tab A35 Gen X20 Zen G50 Direct materials cost $750,000.00 $1,000,000.00 $1,750,000.00 Direct labour cost $390,000.00 $ 310,000.00 $ 280,000.00 Materials moves 1,250.00 1,000.00 750.00 Direct labour hours 1,250.00 250.00 1,000.00 Kilowatt hours 25,000.00 15,000.00 10,000.00 Engineering change notices 275.00 200.00 150.00 Units produced and sold 2,500.00 2,000.00 1,000.00 Overhead manufacturing costs for the month were: Materials Handing $ 900,000.00 Engineering $ 500,000.00 Power $ 920,000.00 Total overhead costs $ 2,320,000.00 Required: a. Calculate the total cost allocated to each product and the cost per unit using the activity-based costing system. (12 marks) b. Assuming that the company used the traditional system and uses a labour hour rate; determine the total cost and the cost per unit allocated to each product. (5 marks) c. In which of the two systems above do you have more confidence? Explain your answer. (3 marks)

Answers

a) The total cost allocated to each product and the cost per unit using the activity-based costing system are given in the table below: Products Tab A 35 Gen X 20 Zen G 50 Direct materials cost $750,000.00 $1,000,000.00 $1,750,000.00 Direct labor cost $390,000.00 $310,000.00 $280,000.00 Material moves $187,500.00 $100,000.00 $75,000.00 (Materials moves per unit x cost driver rate)

Direct labor hours $292,500.00 $58,500.00 $234,000.00 (DLH per unit x cost driver rate) Power $460,000.00 $276,000.00 $184,000.00 (Power per unit x cost driver rate) Engineering $137,500.00 $100,000.00 $75,000.00 (ECN per unit x cost driver rate)

Total cost allocated $2,217,500.00 $1,844,500.00 $2,518,000.00 Cost per unit $887.00 $922.25 $2,518.00

Calculation of the cost driver rate for the Material and handling is as follows;

Material and Handling = Total material handling cost / Total Material moves = $900,000/3000 = $300

Materials moves cost per unit for Tab A 35 = 1250 * 300 = $375,000

Materials moves cost per unit for Gen X 20 = 1000 * 300 = $300,000

Materials moves cost per unit for Zen G 50 = 750 * 300 = $225,000

Calculation of the cost driver rate for the Engineering cost is as follows;

Engineering cost = Total Engineering cost / Total Engineering change notices (ECN)

Engineering cost per unit for Tab A 35 = 275 * 1,500 = $412,500

Engineering cost per unit for Gen X 20 = 200 * 1,500 = $300,000

Engineering cost per unit for Zen G 50 = 150 * 1,500 = $225,000

Calculation of the cost driver rate for the Power cost is as follows;

Power cost = Total Power cost / Total Kilowatt hours

Power cost per unit for Tab A 35 = 25,000 * 23.2 = $580,000

Power cost per unit for Gen X 20 = 15,000 * 23.2 = $348,000

Power cost per unit for Zen G 50 = 10,000 * 23.2 = $232,000

b) The cost allocated to each product and the cost per unit using the traditional system are given in the table below:

Product Tab A 35 Gen X 20 Zen G 50 Direct materials cost $750,000.00 $1,000,000.00 $1,750,000.00

Direct labor cost $390,000.00 $310,000.00 $280,000.00

Direct labor hours $292,500.00 $58,500.00 $234,000.00 (DLH per unit x labor rate)

Overhead costs $780,000.00 $624,000.00 $546,000.00 (Overhead rate per DLH x DLH per unit)

Total cost allocated $2,212,500.00 $1,992,500.00 $2,810,000.00 Cost per unit $885.00 $996.25 $2,810.00

c) In the activity-based costing system, more cost pools are created than the traditional system. The cost is allocated based on activities and not on one cost driver. Thus, the activity-based costing system is more reliable than the traditional system.

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Pharoah Inc. is publicly traded and uses a calendar year for
financial reporting. The company is authorized to issue 50 million
common shares. At no time has Pharoah issued any potentially
dilutive se

Answers

Pharoah Inc. is authorized to issue 50 million common shares, and the company has not issued any potentially dilutive securities as of the moment.

Pharoah Inc. is a publicly traded company that uses the calendar year for financial reporting.

The organization is approved to issue up to 50 million common shares. At no time has the company released any potentially dilutive securities

.Potentially dilutive securities are securities that, when exercised or exchanged, may result in the issuance of common stock, resulting in a reduction in earnings per share or an increase in loss per share. This situation is known as dilution.

Potentially dilutive securities can take various forms, including convertible debt, options, warrants, and other derivative securities. The investor who owns these securities has the option to transform them into shares of common stock in some cases, resulting in dilution.

Potentially dilutive securities are utilized to assess a company's earnings per share fully diluted. Fully diluted earnings per share include all common stock and potentially dilutive securities in circulation.

In summary, Pharoah Inc. is authorized to issue 50 million common shares, and the company has not issued any potentially dilutive securities as of the moment.

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Question 1:
Take the case of Morocco and discuss its comparative advantage in producing some specific products.
Use all the concepts discussed in chapter 2 to support your answers; (you can use graphs as well)

Answers

Morocco possesses several comparative advantages that contribute to its ability to produce specific products. Comparative advantage refers to a country's ability to produce a particular good or service at a lower opportunity cost compared to other countries. In the case of Morocco, some specific products and sectors where it demonstrates comparative advantage are as follows:

Agricultural Products:

Morocco has a favorable climate and suitable agricultural land for producing various agricultural products. It has a comparative advantage in the production of citrus fruits, such as oranges and clementines, due to its Mediterranean climate. The country is one of the largest exporters of citrus fruits globally. Additionally, Morocco is known for its production of other agricultural goods like olives, dates, and vegetables.

Textiles and Apparel:

Morocco has developed a strong textile and apparel industry, which benefits from its comparative advantages in terms of labor and proximity to major markets. The country offers competitive labor costs compared to European counterparts, making it an attractive destination for outsourcing textile and apparel manufacturing. Furthermore, Morocco benefits from preferential trade agreements, such as the Euro-Mediterranean Agreement with the European Union, which provides tariff preferences, facilitating access to the European market.

Phosphates and Chemicals:

Morocco possesses significant reserves of phosphates, a crucial raw material for fertilizer production. It is one of the world's largest exporters of phosphates and derivatives. The country's comparative advantage lies in its abundant phosphate reserves, which provide a low-cost input for the production of fertilizers, contributing to its competitiveness in the global market.

Tourism:

Morocco's geographical location, diverse landscapes, and rich cultural heritage make it an attractive tourist destination. The country offers a unique blend of historical sites, such as the ancient city of Marrakech and the coastal city of Essaouira, as well as natural attractions like the Atlas Mountains and the Sahara Desert. Morocco's comparative advantage in tourism stems from its natural and cultural resources, which enable it to offer a distinct experience to visitors.

Graphically representing comparative advantage:

To demonstrate comparative advantage, we can use production possibility frontiers (PPFs) and opportunity cost analysis. Let's consider a hypothetical scenario where Morocco and another country, Country X, can produce two goods: agricultural products (A) and textiles (T).

Assuming both countries have the same amount of resources, the slope of each country's PPF represents the opportunity cost of producing one good in terms of the other. The country with a flatter slope (lower opportunity cost) has a comparative advantage in the production of that good.

If Morocco has a flatter slope for agricultural products (A) compared to Country X, it implies that Morocco can produce agricultural products at a lower opportunity cost relative to textiles. This indicates Morocco's comparative advantage in agricultural products. Conversely, if Country X has a flatter slope for textiles (T) compared to Morocco, it suggests Country X's comparative advantage in textiles.

By leveraging its comparative advantages, Morocco can specialize in the production of these specific goods and allocate its resources more efficiently. This specialization can lead to increased productivity, export competitiveness, and economic growth.

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Explanation:

You were tasked to evaluate an expansion project and you collected the following information: Initial investment is $1.2m. Your annual EBIT is going to be $500,000, which is net of depreciation of $150,000 and before tax, whereby your corporate tax rate is 21%. At the project start, you need to build up net working capital to a level $100,000, and at project end, in 3 years, you will release that net working capital again and you are expected to recover the full $100,000. There are no other salvage value considerations for this project. Assuming a risk-adjusted discount rate of 10%, the net present value of this project equals…


Select one:

a.1,155,669

b.-144,331

c.130,466

d.-44,331

Answers

The project should be rejected. Therefore, the correct option is letter b. -144,331.

Evaluation of the expansion project using net present value (NPV) method The net present value (NPV) method of evaluating an expansion project compares the present value of future cash flows generated by the project to the initial investment cost. To arrive at a net present value, the initial investment cost is subtracted from the present value of future cash flows.

A positive net present value indicates that the project is expected to generate sufficient returns to cover the cost of the initial investment and meet the company's required rate of return. While a negative net present value indicates that the project is not expected to be profitable and should be rejected.

Therefore, to calculate the net present value, the following steps are carried out; Calculate the present value of cash inflows from the project Calculate the present value of cash outflows associated with the project Subtract the present value of cash outflows from the present value of cash inflows to determine the net present value (NPV) of the project Now let's apply the steps to the scenario given in the question above.

Present value of cash inflows from the project The annual earnings before interest and taxes (EBIT) for the project is $500,000, which is net of depreciation of $150,000 and before tax. Since depreciation is a non-cash expense, it is added back to the EBIT in order to arrive at the cash inflow. This can be calculated as follows: EBITDA = EBIT + Depreciation = $500,000 + $150,000 = $650,000To calculate the cash inflow, we need to subtract the tax rate from the EBITDA and then discount it to the present value using the risk-adjusted discount rate of 10%.Cash inflow = (EBITDA - Tax) / (1 + r)ⁿwhere r is the risk-adjusted discount rate and n is the number of years into the future. The tax rate is 21%, and n is 3 years.

Cash inflow = ($650,000 - 0.21*$650,000) / (1 + 0.1)³= $444,881.24 Present value of cash outflows from the project The initial investment cost for the project is $1.2m. At the project start, net working capital needs to be built up to a level of $100,000, which is part of the initial investment cost. At project end, in 3 years, the net working capital will be released, and the company is expected to recover the full $100,000. Therefore, the only cash outflow from the project is the initial investment cost.

This can be discounted to the present value using the risk-adjusted discount rate of 10%.Present value of cash outflows = Initial investment cost / (1 + r)ⁿ= $1.2m / (1 + 0.1)³= $828,620.69Net present value of the project The net present value of the project is calculated as follows: NPV = Present value of cash inflows - Present value of cash outflows= $444,881.24 - $828,620.69= -$383,739.45 Since the net present value is negative, it indicates that the project is not expected to generate sufficient returns to cover the cost of the initial investment and meet the company's required rate of return. Therefore, the project should be rejected. Therefore, the correct option is letter b. -144,331.

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Which of the following is true of Islamic countries?
A. Their cultures are more homogeneous than that of Western countries.
B. A clear separation of religion and state exists in these countries.
C. Religion is the basis for many legal, as well as ethical, standards in these countries.
D. Trade and commerce with Western countries is usually prohibited in these countries.

Answers

Religion is the basis for many legal, as well as ethical, standards in these countries is true of Islamic countries. The correct option is C.

Islamic nations are frequently distinguished by Islam's influence on various facets of society, including the law and morality. These nations legal systems and social norms and practices are significantly influenced by Islamic teachings and principles. Many Islamic nations legal systems are based on Islamic law also known as Sharia which is derived from religious texts.

It is important to keep in mind that different Islamic nations may have different cultural and political traditions, so generalizations may not always hold true. While some Islamic nations might have a more uniform culture others might have a more varied culture. The degree of separation between state and religion can also vary from those with a definite separation to those where religion plays a more significant role in governance. The correct option is C.

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sometimes, advertising tactics can be used to promote public awareness of social issues. in class we viewed some canadian public service announcements that were not accepted to be aired by mainstream television. what was the topic of these psas?

Answers

It is also possible that the PSAs addressed lesser-known or niche issues that are often overlooked by mainstream media.

While they may not have been accepted for mainstream television, they can still serve a valuable purpose by being shared online or in alternative media channels to reach a specific target audience and stimulate dialogue around the topics they address.The topic of the Canadian public service announcements (PSAs) that were not accepted to be aired by mainstream television was likely a controversial or sensitive social issue. PSAs are typically created to raise public awareness about various topics, ranging from health and safety issues to environmental concerns or social injustices. However, due to their potential to provoke controversy or discomfort, some PSAs may face resistance from mainstream television networks.The specific topic of the PSAs you viewed in class could vary, as there are numerous social issues that can generate controversy or discomfort. Some common themes explored in PSAs include anti-discrimination campaigns, mental health awareness, substance abuse prevention, sexual assault prevention, climate change, and human rights.

These rejected PSAs often seek to challenge the status quo, provoke critical thinking, and spark conversations about important social issues.

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FILL THE BLANK. "number 19
STOCK PRICE IN 3 YEARS........... 19) Z Space, Incorporated, is a new company and currently has negative earnings. The company's sales are $1.6 million and there are 122,000 shares outstanding. If the"

Answers

The stock price in 3 years is uncertain and cannot be determined based on the given information.

Can the stock price in 3 years be determined with the given information?

why the stock price in 3 years cannot be determined with the given information.

The stock price in 3 years for Z Space, Incorporated cannot be determined based solely on the provided information. The fact that the company currently has negative earnings and the sales and number of shares outstanding are given does not provide enough data to estimate the future stock price accurately.

Determining the stock price involves considering various factors such as the company's financial performance, profitability, market conditions, industry trends, and investor sentiment. While the sales and number of shares outstanding are relevant pieces of information, they alone do not provide a complete picture of the company's financial health or its future prospects.

To estimate the stock price in 3 years, one would need additional details such as the company's earnings growth rate, dividend policy, capital structure, competitive position, and market outlook. These factors play a crucial role in determining the value and potential growth of a company's stock.

Therefore, without more comprehensive information, it is not possible to accurately predict the stock price of Z Space, Incorporated in 3 years.

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Sheridan Ltd. incurs these expenditures in purchasing a truck: invoice price $44,560; installation of a trailer hitch $1,100; one-year accident insurance policy $827; motor vehicle licence $155; painting and lettering $820. What is the cost of the truck?

Answers

If invoice price $44,560, installation of a trailer hitch $1,100, one-year accident insurance policy $827, the cost of the truck for Sheridan Ltd. is $47,462.

The cost of the truck can be determined by adding up all the expenditures incurred in its purchase. In this case, Sheridan Ltd. has several expenditures related to the truck purchase:

Invoice price: $44,560

Installation of a trailer hitch: $1,100

One-year accident insurance policy: $827

Motor vehicle license: $155

Painting and lettering: $820

To calculate the cost of the truck, we simply add up all these expenditures:

Cost of the truck = Invoice price + Trailer hitch installation + Accident insurance + Motor vehicle license + Painting and lettering

Cost of the truck = $44,560 + $1,100 + $827 + $155 + $820

Cost of the truck = $47,462

By summing up all the expenses associated with purchasing the truck, we can determine the total cost incurred by Sheridan Ltd. This includes the initial invoice price of the truck, as well as additional expenses such as installation, insurance, license, and any other costs involved in preparing the truck for use.

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Both sides of the quantity theory of money identity represent: Real GDP. Inflation Nominal GDP. The Money Supply.

Answers

The quantity theory of money identity asserts that the supply of money and the rate of inflation are proportional. It asserts that changes in the supply of money lead to proportionate changes in nominal GDP.

It's represented by the formula MV = PY,  where M is the money supply,  V is the velocity of money, P is the price level, and Y is the real GDP.

Both sides of the quantity theory of money identity are represented by nominal GDP. The left side of the formula MV is the money supply multiplied by the velocity of money.

The money supply is defined as the amount of currency in circulation plus deposits in bank accounts. Velocity of money, on the other hand, measures how many times a unit of currency is used to buy goods and services.

When multiplied together, this is known as the number of transactions occurring in the economy. The right side of the formula PY is nominal GDP, which represents the total value of goods and services produced in an economy at current market prices.

Real GDP represents the total value of goods and services produced in an economy, adjusted for inflation. The quantity theory of money identity maintains that changes in the money supply will result in a proportionate increase in the nominal GDP.

This concept is the fundamental basis of monetarism, which holds that controlling the money supply is critical in regulating inflation.

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Which of the following best describes the concept of materiality in respect to auditing?
Select one:
a. A matter or issue is material if its omission or misstatement would reasonably influence the decision(s) of any addressee of the auditors' report.
b. A matter or issue is material if the auditor and directors both decide further work needs to be completed in the area under examination.
c. A matter or issue is only matter if it changes the audit report.
d. A matter or issue is material only if it affects the directors emoluments (i.e., salary, benefits

Answers

The concept of materiality in respect to auditing is best described as a matter or issue being material if its omission or misstatement would reasonably influence the decision(s) of any addressee of the auditor's report.  The correct answer is a.

This means that auditors must ensure that the information in the financial statements is accurate and complete so that the users of those financial statements can make informed decisions. In order to do this, auditors use the concept of materiality to help them determine which items are important enough to be included in their audit work.

Materiality is an important concept in auditing because it helps auditors determine which items are important enough to be included in their audit work. It also helps auditors determine the appropriate level of detail to include in their audit work.

Auditors use materiality to help them focus their audit work on the most important items and to help them determine the appropriate level of detail to include in their audit work. If an item is considered material, the auditor will likely perform more detailed audit work on that item than on items that are not considered material.

In general, the concept of materiality helps auditors ensure that they are providing users of the financial statements with accurate and complete information that is relevant to their decision-making. Therefore, The correct answer is a.

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Which of the following is NOT considered a software threat to security?
worms
spyware
trojan virus
file corruption
Viruses and trojans are common external security threats to organizations and often come in e-mail attachments.

Answers

File corruption s NOT considered a software threat to security. Debugging is the process of identifying and fixing defects in computer programmes, software, or systems. It is a crucial step in computer programming and software development.

Software threats are harmful programmes and bits of code that can harm your computer and steal your personal or financial data. Because of this, these harmful programmes are frequently referred to as malware (short for "malicious software").

Malware, social engineering, web application exploits, supply chain assaults, denial of service attacks, and man-in-the-middle attacks are the primary categories of cybersecurity threats that businesses today must deal with. An expression of intent to cause damage or loss to another person is known as a threat.

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The following data are adapted from the financial statements of

Jim Jim's

Shops, Inc.:

Total Current Assets

$1,050,000

Accumulated Depreciation

2,100,000

Total Liabilities

1,820,000

Preferred Stock

0

Debt Ratio

70%

Current Ratio

1.50

Prepare

Jim'sJim's

condensed balance sheet as of December 31,

20182018.

(Round your answers to the nearest whole dollar.)

Jim's Shops, Inc.

Balance Sheet

December 31, 2018

Assets

Total Current Assets

Plant Assets

Less: Accumulated Depreciation

Total Assets


Liabilities

Total Current Liabilities

Long-term Liabilities

Total Liabilities

Stockholders' Equity

Stockholders' Equity

Total Liabilities and Stockholders' Equity

Answers

Jim's Shops, Inc. Balance Sheet

December 31, 2018 AssetsTotal Current Assets: $1,050,000

Liabilities Total Current Liabilities: $700,000 Long-term Liabilities: $1,120,000 Total Liabilities: $1,820,000

Jim's Shops, Inc.

Balance Sheet

December 31, 2018

Assets

Total Current Assets: $1,050,000

Plant Assets: (To be calculated)

Less: Accumulated Depreciation: $2,100,000

Total Assets: (To be calculated)

Liabilities

Total Current Liabilities: (To be calculated)

Long-term Liabilities: (To be calculated)

Total Liabilities: $1,820,000

Stockholders' Equity

Stockholders' Equity: (To be calculated)

Total Liabilities and Stockholders' Equity: (To be calculated)

To complete the balance sheet, we need to calculate the following values:

Plant Assets:

Plant Assets = Total Assets - Total Current Assets - Accumulated Depreciation

Since the information provided doesn't include the total assets, we cannot calculate the plant assets.

Total Assets:

Total Assets = Total Current Assets + Plant Assets

As we cannot determine the plant assets, we cannot calculate the total assets.

Total Current Liabilities:

Total Current Liabilities = Total Current Assets / Current Ratio

Total Current Liabilities = $1,050,000 / 1.50

Total Current Liabilities = $700,000

Long-term Liabilities:

Long-term Liabilities = Total Liabilities - Total Current Liabilities

Long-term Liabilities = $1,820,000 - $700,000

Long-term Liabilities = $1,120,000

Stockholders' Equity:

Stockholders' Equity = Total Assets - Total Liabilities

Since we cannot determine the total assets, we cannot calculate the stockholders' equity.

Total Liabilities and Stockholders' Equity:

Total Liabilities and Stockholders' Equity = Total Liabilities + Stockholders' Equity

As we cannot determine the stockholders' equity, we cannot calculate the total liabilities and stockholders' equity.

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Gamma Petroleum made the following transactions, all relating to one lease: a. On March 10, 2017, Gamma Petroleum paid delinquent property taxes of $4,000 on an undeveloped lease. Assume that these taxes are recoverable out of future delay rental or royalty payments. Give the entry to record payment. b. On February 15, 2018, a delay rental payment of $1,000 is due. Determine the amount of cash actually paid and give the entry to record payment. c. On July 21, 2018, Gamma Petroleum decided to surrender the lease. Give the entry to record abandonment with respect to the delinquent property taxes. Ignore acquisition costs of the property. d. Assume instead that the $4,000 payment of delinquent taxes was not recoverable and was made at the time Gamma Petroleum was acquiring the lease. Give the entry to record the payment. e. Assume instead that the $4,000 payment was not recoverable and was made by Gamma Petroleum six months after acquiring the lease in order to protect Gamma's investment.

REQUIRED: Give the entry to record the payments.

Answers

On March 10, 2017, the payment made by Gamma Petroleum to pay the delinquent property taxes of $4,000 on an undeveloped lease can be recorded with the following journal entry

Dr. Property tax expense - $4,000

Cr. Cash - $4,000b.

On February 15, 2018, Gamma Petroleum owes a delay rental payment of $1,000.

The entry to record payment is:

Dr. Lease expense - $1,000

Cr. Cash - $1,000c.

On July 21, 2018, Gamma Petroleum has decided to abandon the lease and abandon the delinquent property taxes.

To record the abandonment with respect to the delinquent property taxes, the following entry will be made:

Dr. Property tax expense - $4,000

Cr. Lease liability - $4,000

In this case, the $4,000 payment of delinquent taxes is not recoverable and was made at the time Gamma Petroleum acquired the lease. To record the payment, the following entry will be made:

Dr. Property tax expense - $4,000

Cr. Cash - $4,000e.

If the $4,000 payment was not recoverable and was made by Gamma Petroleum six months after acquiring the lease to protect the company's investment, the following entry will be made:

Dr. Property tax expense - $4,000

Cr. Cash - $4,000

Note: In all entries above, I have assumed that no acquisition costs have been incurred by Gamma Petroleum for acquiring the lease.

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Voucher system and control of cash payments LO P1 Determine whether each cash payment procedure is an internal control strength or weakness. Cash payments strength or weakness. 1. In the voucher system, the company's accounting department requests purchases of inventory and records the transaction 2. The owner of a small business has authority to write and sign checks 3. Requesting and receiving merchandise is handled by the same department. 4. Only authorized departments and individuals can incur liabilities 5. A voucher system is used for all payments of liabilities 6. To save time, all departments are allowed to incur liabilities.

Answers

Strengths of internal control include the use of a voucher system, authorization of liabilities, and limiting access to authorized departments and individuals. Weaknesses include lack of segregation of duties and potential lack of control over expenditures.

Here is an assessment of each cash payment procedure in terms of internal control strength or weakness:

In the voucher system, the company's accounting department requests purchases of inventory and records the transaction.

Strength: This is a strength of internal control as it establishes a proper process where the accounting department initiates and records inventory purchases. It helps ensure that all purchases are authorized and recorded accurately.

The owner of a small business has authority to write and sign checks.

Weakness: This is a weakness of internal control as it lacks segregation of duties. Ideally, the owner should not have complete control over check writing and signing to prevent potential misuse or fraud. It is recommended to have a separate individual involved in the authorization and signing of checks.

Requesting and receiving merchandise is handled by the same department.

Weakness: This is a weakness of internal control as it lacks segregation of duties. Separating the responsibilities of requesting and receiving merchandise helps prevent potential fraud or errors by ensuring that multiple individuals are involved in the process.

Only authorized departments and individuals can incur liabilities.

Strength: This is a strength of internal control as it ensures that liabilities can only be incurred by authorized departments and individuals. It helps prevent unauthorized spending and ensures accountability.

A voucher system is used for all payments of liabilities.

Strength: This is a strength of internal control as a voucher system provides a documented approval process for payments, ensuring that all liabilities are properly authorized before payment is made.

To save time, all departments are allowed to incur liabilities.

Weakness: This is a weakness of internal control as it lacks proper authorization and control. Allowing all departments to incur liabilities without a centralized approval process increases the risk of unauthorized or unnecessary spending.

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Question Seth and Sara Moore are married taxpayers with a 35% marginal income tax rate. During the current year, they earned $10,000 interest on a bond investment. Seth and Sara have five minor children. Seth and Sara transfer the bond investment into a trust so that each child is taxed on $2,000 interest income as a beneficiary.
1. What was the yearly tax on the interest prior to the transfer?

Answers

If Seth and Sara Moore are married taxpayers with a 35% marginal income tax rate, the yearly tax on the interest prior to the transfer was $3,500.

Prior to the transfer of the bond investment into the trust, Seth and Sara Moore earned $10,000 in interest income. Since they are married taxpayers with a marginal income tax rate of 35%, their tax liability on this interest income can be calculated by multiplying the interest income by the tax rate:

Tax on Interest = Interest Income * Tax Rate

Tax on Interest = $10,000 * 0.35

Tax on Interest = $3,500

The tax liability is determined based on the interest income and the applicable tax rate. In this case, Seth and Sara's marginal tax rate is 35%, so they would owe 35% of their interest income as taxes.

Transferring the bond investment into the trust and allocating $2,000 interest income to each child is a separate tax planning strategy, and the tax implications of the trust and the children's tax liabilities would need to be considered separately.

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A firm has a P/E ratio of 50 and a price-to-sales (P/Sales)
ratio of 5. What should be the profit margin?
a. 100%
b. 1%
c. 10%
d. 25%

Answers

The profit margin should be 1% for a firm with a P/E ratio of 50 and a price-to-sales (P/Sales) ratio of 5. So, the correct option is B.

The percentage of revenue that is turned into profit is represented by the profit margin, which serves as a gauge of a company's profitability. We must comprehend the connection between the P/E ratio, P/Sales ratio, and profit margin in order to calculate the profit margin in this case.

By dividing the share price by the earnings per share (EPS), the P/E ratio is determined. Considering that the P/E ratio in this instance is 50, it can be concluded that stockholders are prepared to pay 50 times the company's earnings per share.In contrast, the market capitalization is divided by the company's revenue to determine the P/Sales ratio. The P/Sales ratio in this instance is 5, indicating that investors are placing a 5 times the company's yearly revenue value on it.

To find the profit margin, we will use the formula, then we will get:

Profit Margin = (Net Income / Revenue) * 100

We must assume based on the available data because we don't have the net income or revenue figures. Investors likely have high expectations for the company's possible future earnings given the high P/E and P/Sales ratios.

Considering this, a profit margin of 1% seems reasonable. This indicates that for every dollar of revenue generated, the company can convert 1 cent into profit. It reflects a relatively low-profit margin, which suggests that the company may have higher operating costs or lower profit margins compared to its competitors.

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Lewis Mumford, one of the prominent historians of technology, once wrote that from late the Neolithic Era (roughly 2000 BCE), "right down to our own day, two technologies have recurrently existed side by side: one authoritarian, the other democratic, the first system-centered, immensely powerful, but inherently unstable, the other man-centered, relatively weak, but resourceful and durable." Langdon Winner uses this as his starting point to discuss the politics of technology and argues that technologies affect the "relative distribution of power, authority, and privilege." In your post for this discussion, please respond to the following questions:

Do you agree or disagree and why? Please give specifics to backup your assertions.
Do you think that artifacts, or technologies, have politics and are some these necessarily democratic or totalitarian?
Can you give any specific examples similar to the ones used by Winner; i.e., the tomato harvester and the bridges built by Robert Moses.

Answers

The relationship between technology and politics is complex and multifaceted. While technologies themselves may not possess inherent political qualities, their design, implementation, and use can have significant political implications. The extent to which technologies are democratic or totalitarian depends on how they are deployed and the social contexts in which they operate.

1. Agreement or disagreement with Lewis Mumford and Langdon Winner:

The statement made by Lewis Mumford and further discussed by Langdon Winner suggests that technologies can have political implications and impact the distribution of power, authority, and privilege. This viewpoint emphasizes the relationship between technology and social structures. Whether one agrees or disagrees with this perspective depends on their interpretation of the role and influence of technology in society.

Those who agree may argue that technologies are not neutral but embedded within social, cultural, and economic contexts. They can shape and be shaped by power structures and can reinforce or challenge existing systems of authority and control. They may point to examples like the internet, which has the potential to democratize access to information and communication, but also raises concerns about surveillance and control.

Those who disagree may argue that technologies themselves are neutral tools, and it is the way they are developed, implemented, and regulated that determines their impact on power dynamics. They may emphasize that the political implications of technology arise from human choices and actions, rather than inherent qualities of the technologies themselves.

2. The politics of artifacts/technologies:

The concept that artifacts or technologies have politics suggests that they can embody certain values, ideologies, or power relations. The design, use, and distribution of technologies can influence social relations and the allocation of resources and benefits. Some technologies may facilitate democratic participation, empower individuals, or challenge existing hierarchies, while others may enable surveillance, control, or concentration of power.

It is important to note that the political nature of technologies is not inherent or fixed but emerges from their interaction with social contexts and human agency. Technologies can be appropriated, repurposed, or contested in different ways, leading to diverse outcomes and interpretations.

3. Specific examples:

Langdon Winner's examples of the tomato harvester and the bridges built by Robert Moses are often cited to illustrate the political dimensions of technology.

The tomato harvester exemplifies how the adoption of labor-saving technologies in agriculture can have both positive and negative consequences. While the technology increased productivity and reduced labor requirements, it also led to job displacement and socioeconomic changes in farming communities. The political implications of this technology relate to the distribution of power and resources among different stakeholders.

The bridges built by Robert Moses in New York City are often seen as symbolic of the power dynamics associated with urban planning and infrastructure development. Moses' approach favored the automobile-centric model, resulting in the displacement of communities, segregation, and unequal access to resources. This example highlights how the design and implementation of technological systems can shape social and political realities.

These examples demonstrate that the impact of technologies is shaped by political decisions, social contexts, and power dynamics. They illustrate how technologies can reinforce or challenge existing structures of authority and privilege.

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Because of safety considerations, in May 2021 the Federal Aviation Administration (FAA) changed its guide- lines for how small commuter airlines must estimate passenger weights. Under the old rule, airlines used 160 pounds as a typical passenger weight (including carry-on luggage) in warm months. A journal reported that an airline con- ducted a study to estimate average passenger plus carry-on weights. They found an average summer weight of 10aß pounds. Suppose that each of these estimates was based on a random sample of 100 passengers and that the sample standard deviations were 15 pounds for the summer weights. Construct a 95% confidence interval for the mean summer weight (including carry-on luggage) of this airline's pas- sengers. (Show the detailed steps, and round your answer to three decimal places.)

Answers

Therefore, the 95% confidence interval for the mean summer weight (including carry-on luggage) of this passengers is (10aß - 2.94, 10aß + 2.94). Hence, the required confidence interval is (10aß - 2.94, 10aß + 2.94).

According to the new rule, the Federal Aviation Administration (FAA) changed its guidelines for how small commuter airlines must estimate passenger weights, which is due to safety considerations. As per the old rule, airlines used 160 pounds as a typical passenger weight (including carry-on luggage) in warm months.

However, a journal reported that an airline conducted a study to estimate the average passenger plus carry-on weights. They found an average summer weight of 10aß pounds. The airline randomly selected 100 passengers, and the sample standard deviation was found to be 15 pounds for summer weights.

Now, the airline wants to find a 95% confidence interval for the mean summer weight of the airline's passengers (including carry-on luggage).Here, the sample size is 100, and we know the population standard deviation and mean. Therefore, we can use the Z-distribution.

The 95% confidence interval is given as,95% Confidence interval = (¯x - Z(α/2) * σ/√n, ¯x + Z(α/2) * σ/√n)

Where,¯ x = sample mean = 10aßσ = population standard deviation = 15n = sample size = 100Z(α/2) = Z-score for the α/2 level of significance.

The Z(α/2) value can be obtained from the Z-table or calculator.

Z(α/2) = Z(0.025) (from the Z-table)Z(α/2) = 1.96Substituting the given values,95% Confidence interval = (10aß - 1.96 * 15/√100, 10aß + 1.96 * 15/√100)95% Confidence interval = (10aß - 2.94, 10aß + 2.94)

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Russia, Poland, Hungary, and other Eastern European nations have turned away from communism and toward economic systems governed by supply and demand rather than by central planning. O True O False

Answers

The statement "Russia, Poland, Hungary, and other Eastern European nations have turned away from communism and toward economic systems governed by supply and demand rather than by central planning" is true.

After the end of World War II, most of the countries of Eastern Europe were occupied by Soviet troops, and communist-led governments were put in place. These countries underwent rapid industrialization and economic development, with centrally planned economies and significant state control over industry and agriculture.

Russia, Poland, Hungary, and other Eastern European countries have since then abandoned communism and shifted toward economic systems that are governed by supply and demand rather than by central planning.

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Bentz Corporation bought and sold several securities during 2021. Listed below is a summary of the transactions: February 17 Purchased $102,000 of U.S. Treasury 6% bonds at par plus accrued interest of $1,000. The security is to be held for short-term profits. April 10 Purchased 500 shares of Gauges Inc. common stock at $140 per share. This security will be held for an unspecified period of time. Sold 100 shares of Gauges Inc. for $150 per share. August October 5 Sold half of the U.S. Treasury bonds for $51,500 plus accrued interest of $300. Required: Prepare the journal entries for the above transactions.

Answers

Here are the journal entries for Bentz Corporation’s transactions during 2021:February 17: Purchased $102,000 of U.S. Treasury 6% bonds at par plus accrued interest of $1,000.

The security is to be held for short-term profits.

Dr. U.S. Treasury Bonds$103,000

Cr. Cash$103,000

April 10: Purchased 500 shares of Gauges Inc. common stock at $140 per share.

This security will be held for an unspecified period of time.Dr. Gauges Inc. common stock$70,000

Cr. Cash$70,000

Sold 100 shares of Gauges Inc. for $150 per share.Dr. Cash$15,000

Cr. Gauges Inc. common stock$14,000

Cr. Gain on sale of stock$1,000

August 5: Sold half of the U.S. Treasury bonds for $51,500 plus accrued interest of $300.

Dr. Cash$51,800

Dr. Loss on sale of securities $200

Cr. U.S. Treasury Bonds $51,500

Gain on sale of stock is calculated as follows:

Purchase price of 100 shares = 100 shares × $140

= $14,000

Sale price of 100 shares = 100 shares × $150

= $15,000

Gain on sale of 100 shares = $15,000 – $14,000

= $1,000

Loss on sale of securities = Proceeds – Cost

= ($51,500 + $300) – (($102,000 + $1,000)/2)

= $52,000 – $51,000

= $200.

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What is meant by the following statement? You are stuck with a
bond discount, but you can never hope to receive the benefits of a
bond premium.

Answers

A bond discount occurs when a bond is purchased for less than its face value. This can happen when interest rates have risen since the bond was issued. A bond premium occurs when a bond is purchased for more than its face value. This can happen when interest rates have fallen since the bond was issued.

The statement "You are stuck with a bond discount, but you can never hope to receive the benefits of a bond premium" means that an investor who buys a bond at a discount will never be able to sell it for more than they paid for it.

This is because the bond will always be worth less than its face value due to the discount. However, an investor who buys a bond at a premium may be able to sell it for more than they paid for it.

This is because the bond will always be worth more than its face value due to the premium.

For example, let's say you buy a bond with a face value of $1,000 and a coupon rate of 5%. The bond is currently trading at a discount of $50. This means that you paid $950 for the bond.

When the bond matures, you will receive $1,000 from the issuer. However, you will never be able to sell the bond for more than $950. This is because the bond is always worth less than its face value due to the discount.

Now, let's say you buy a bond with a face value of $1,000 and a coupon rate of 5%. The bond is currently trading at a premium of $50. This means that you paid $1,050 for the bond.

When the bond matures, you will receive $1,000 from the issuer. However, you may be able to sell the bond for more than $1,050. This is because the bond is always worth more than its face value due to the premium.

In general, investors prefer to buy bonds at a premium because they can sell them for a profit. However, investors may also be willing to buy bonds at a discount if they believe that interest rates will fall in the future. This is because the bond will then be worth more than its face value.

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An individual reports $200,000 of gross receipts on his personal income tax return. The individual is audited by NYS for income tax purposes. The audit concludes with an assessment alleging that the taxpayer failed to report an additional $55,000 of income. The statute of limitations to assess the taxpayer is:
a. Ten Years
b. Three Years
c. Six Years
d. There is no time limit if a return is not filed

Answers

The statute of limitations to assess the taxpayer is  Six Years. Thus the correct option is C.

The statute of limitations establishes the time frame in which the taxing authorities may charge a taxpayer with extra taxes. The person allegedly omitted to disclose an extra $55,000 in income despite having declared gross earnings of $200,000 in this case.

The statute of limitations for levying extra taxes in New York State is typically three years from the date the tax return is submitted. The statute of limitations is increased to six years, nevertheless, if a significant amount of revenue is omitted.

Therefore, the appropriate option is C.

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a firm suffering economic losses decides whether or not to produce in the short run on the basis of whether a. revenues from operating are sufficient to cover fixed plus variable costs. b. revenues cover variable costs. c. revenues from operating are sufficient to cover fixed costs. d. firms suffering economic losses will always shut down.

Answers

In the short run, a firm suffering economic losses decides whether or not to produce based on whether revenues from operating are sufficient to cover fixed plus variable costs.  Option A is the correct answer.

The firm's decision to produce in the short run depends on its ability to cover both fixed and variable costs with its operating revenues. Option A is the correct answer because it considers both fixed and variable costs. If the firm's revenues are enough to cover both fixed costs (such as rent, insurance, and salaries) and variable costs (such as raw materials and labor), then it may choose to continue production despite incurring economic losses.

However, if the firm's revenues only cover variable costs (Option B) or just fixed costs (Option C), it may not be enough to sustain the business and cover all expenses, leading to a decision to shut down operations (Option D). Therefore, Option A is the most comprehensive and accurate choice.

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Suppose the Chinese subsidiary of an MNC uses capital structure that differs substantially from the MNC's optimal capital structure. Provide justification for the Chinese subsidiary to be financed using local debt. Would the differing capital structure decisions prevent the MNC from enhancing its shareholders' wealth?

Answers

The Chinese subsidiary of an MNC may choose to finance itself with local debt if its optimal capital structure differs significantly from that of the MNC. This could be due to a variety of reasons, including differences in regulations, currency exchange rates, and local market conditions.

Local debt financing may help the subsidiary reduce its cost of capital and optimize its capital structure, resulting in better returns for its shareholders. However, the use of differing capital structure decisions does not necessarily prevent the MNC from enhancing its shareholders' wealth. The MNC can still benefit from the subsidiary's operations by receiving dividends and capital gains from its investment.


In conclusion, the Chinese subsidiary of an MNC may use local debt to finance itself if it differs significantly from the MNC's optimal capital structure. This can be justified by local market conditions and regulations.

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Financial institutions in the U.S. economy Suppose Dmitri would like to use $8,000 of his savings to make a financial investment. One way of making a financial investment is to purchase stock or bonds from a private company. Suppose TouchTech, a hand-held computing firm, is selling stocks to raise money for a new lab-a practice known as share of TouchTech stock would give Dmitri ____the firm. In the event that TouchTech runs into financial difficulty, ____will be paid first. Suppose Dmitri decides to buy 100 shares of TouchTech stock. Which of the following statements are correct? Check all that apply. a. The Dow Jones Industrial Average is an example of a stock exchange where he can purchase TouchTech stock. b. Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Dmitri's shares to decline. c. An increase in the perceived profitability of TouchTech will likely cause the value of Dmitri's shares to rise. Alternatively, Dmitri could make a financial investment by purchasing bonds issued by the government of Japan. interest rate Assuming that everything else is equal, a bond issued by a government that is engaged in a civil war most likely pays a than a bond issued by the government of Japan.

Answers

a. The Dow Jones Industrial Average is an example of a stock exchange where he can purchase TouchTech stock. (This statement is not correct. The Dow Jones Industrial Average is an index that tracks the performance of 30 large publicly traded companies in the United States, but it is not a stock exchange where individual stocks can be purchased.)

b. Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Dmitri's shares to decline. (This statement is correct. During a recession, corporate profits tend to decline, which can negatively impact the value of stocks, including TouchTech stock.)

c. An increase in the perceived profitability of TouchTech will likely cause the value of Dmitri's shares to rise. (This statement is correct. If TouchTech's profitability increases, it can have a positive impact on the value of its stock, potentially causing the value of Dmitri's shares to rise.)

Regarding the second part of the question:

A bond issued by a government that is engaged in a civil war most likely pays a higher interest rate than a bond issued by the government of Japan. (This statement is generally correct. Governments in countries experiencing civil unrest or instability are considered to have higher default risk, so they need to offer higher interest rates to attract investors to their bonds. On the other hand, the government of Japan, which is considered to have a stable economy and low default risk, can offer lower interest rates on its bonds.)

About Industry

Industry is a field or economic activity related to the processing/manufacturing of raw materials or the manufacture of finished goods in factories using skills and labor and the use of tools in the field of processing agricultural products, and their distribution as the main activity.

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Use the following information for the question(s) below. Market Value Balance Sheet and Cost of Capital for the firm Econtainer Inc. Assets Liabilities Cost of Capital Cash 650 Debt 1050 Debt 3% Other Assets 1200 Equity 800 Equity 15% Corporate Tax: TC 50% The firm has a new project available. New project Free Cash Flows: Year 0 1 Free Cash Flows($445) $552.5 Assume that the new project is of average risk for the firm and that the firm wants to hold constant its D/E ratio. (a) What is the unlevered cost of capital? What is the (post-tax) weighted average cost of capital? [10 marks] [SHOW YOUR WORKING] (b) Should the firm do the project? (Yes/No). How much firm increases in value thanks to the new project? [10 marks] [SHOW YOUR WORKING] (c) What is the debt capacity for the new project in year 0? [10 marks] [SHOW YOUR WORKING]

Answers

The debt capacity for the new project in year 0 is $1050 , WACC is 8.01% and Increase in value is $53.5

Unlevered cost of capital is a financial metric that shows the required rate of return of a company without taking into account its financial structure.

Unlevered cost of capital is used to evaluate an investment or a new project.

To calculate the unlevered cost of capital (UCC), we can use the following formula:

UCC = (Cost of equity x Equity / (Equity + Debt)) + (Cost of debt x (1 - TC) x Debt / (Equity + Debt))

Where, Cost of equity = Earnings per share / Current market value per share

Cost of debt = Interest expense / Debt

Equity = Market value of equity

Debt = Market value of debt

TC = Corporate tax rate

Given, Cost of equity = 15%

Equity = 800

Debt = 1050

Cost of debt = 3%

Corporate Tax (TC) = 50%

UCC = (0.15 x 800 / (800 + 1050)) + (0.03 x (1 - 0.5) x 1050 / (800 + 1050))

UCC = 9.74%

Post-tax weighted average cost of capital is a financial metric that takes into account a company's debt and equity to determine the average cost of capital after taxes.

To calculate the post-tax weighted average cost of capital (WACC), we can use the following formula:

WACC = (E / (E + D)) × Re + (D / (E + D)) × Rd × (1 - TC)

Where,E = Equity

D = Debt

Re = Cost of equity

Rd = Cost of debt

TC = Corporate tax rate

Given,E = 800D = 1050

Re = 15%

Rd = 3%

TC = 50%

WACC = (800 / (800 + 1050)) × 15% + (1050 / (800 + 1050)) × 3% × (1 - 0.5)

WACC = 8.01%

The value of a project can be determined by using the present value of the expected future cash flows from the project.

The formula to calculate the present value of cash flows is as follows:

Present value of cash flows = Cash flow / (1 + r)t

Where, r = Discount rate (in decimal)

Cash flow = Cash inflow - Cash outflow

Given,Year 0

Free Cash Flow = ($445) + $552.5

= $107.5

Discount Rate (r) = 8.01%

Year 1 Free Cash Flow = $552.5

PV of cash flows = -107.5 / (1 + 0.0801)0 + 552.5 / (1 + 0.0801)1

PV of cash flows = $498.5

The present value of cash inflows is greater than the present value of cash outflows. Hence the firm should do the project. The increase in value can be calculated as follows:

Increase in value = Present value of cash inflows - Present value of cash outflows

Increase in value = $498.5 - $445

Increase in value = $53.5

To calculate the debt capacity for the new project in year 0, we can use the following formula:

Debt Capacity = Total assets - Equity

Given,Total Assets = $650 + $1200

= $1850

Equity = $800

Debt capacity = $1850 - $800

Debt capacity = $1050

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proper posting
The following information is for Oriole Company: 1 Cash balance per bank, July 31, $6,038, 2. July bank service charge not recorded by the depositor, $27. 3 The bank erroneously charged another compan

Answers

This is a summary of the bank reconciliation for Oriole Company as of July 31. The cash balance per bank statement was $6,038. However, there were some adjustments that needed to be made to reflect the true cash balance. First, the bank charged a service fee of $27 that was not recorded by Oriole Company. This reduced the cash balance by $27. Second, the bank made an error and deducted another company's check of $1,200 from Oriole Company's account. This decreased the cash balance by $1,200. Therefore, the adjusted cash balance per bank was $7,265.

About bank

Bank is an intermediary financial institution that is generally established with the authority to accept deposits, lend money, and issue promissory notes. The word bank comes from the Italian banca which means a place where money is exchanged.

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A group of Japanese investors is visiting your office. During a
meeting there is a long period of silence. What should you do?

Answers

Answer:

Stay quiet until the silence breaks

Explanation:

Other Questions
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An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31).2. Bad debts are estimated to be 3% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet.a3. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet. a maximum profit is least likely to accurwhen If you are economist, will you be interested to measure real GDPor nominal GDP? Give reason. the patient has high blood pressure or diabetes or both. the patient has diabetes or high cholesterol or both. therefore, the patient has high blood pressure or high cholesterol discrete mathematics Which of the following statements about franchises are true?a. A franchise involves a license to use intellectual property.b. A franchise involves initial sales of products and services as well as ongoing sales of products and services.c. Each part of the franchise arrangement must be evaluated to identify the performance obligations.d. In a franchise arrangement, a franchisee grants the franchisor the right to sell the franchisor's products and use its name. Does the residual plot show that the line of best fit is appropriate for the data? If a monopolist can practice perfect price discrimination, the monopolist willa) eliminate consumer surplus.b)eliminate deadweight loss.c)maximize profits.d)All of the above are correct. please provide answers 1, 2, 3, 4 in a correctway.20x1 20x2 Cash 31,257 53,243 Marketable Securities 34,120 53,700 Accounts Receivable 25,100 42,030 Inventory 26,130 11,025 Prepaid Expense 13,560 24,000 Equipment 525,000 850,000 Accumulated Depreciat Suppose a simple random sample of size n = 81 is obtained from a population with mu = 84 and sigma = 27. (a) Describe the sampling distribution of x. (b) What is P (x > 89.7)? (c) What is P (x lessthanorequalto 77.85)? (d) What is P (81.15 < x < 88.65)? (a) Choose the correct description of the shape of the sampling distribution of x. A. The distribution is skewed right. B. The distribution is uniform. C. The distribution is approximately normal. D. The distribution is skewed left. E. The shape of the distribution is unknown. Find the mean and standard deviation of the sampling distribution of x. mu_x^- = sigma_x^- = (b) P (x > 89.7) = (Round to four decimal places as needed.) (c) P (x lessthanorequalto 77.85) = (Round to four decimal places as needed.) (d) P (81.15 < x < 88.65) = (Round to four decimal places as needed.) u.s. pension funds holding u.k. government bonds u.s. manufacturing industries american tourists planning a trip to france an american firm trying to purchase property overseas Which of the following would use a process costing system rather than a job order costing system? OA. a paint manufacturer B. a health-care service provider O C. a home remodeling contracting company D. a music production studio In this problem, we consider replacing an existing electrical water heater with an array of solar panels. The net installed investment cost of the panels is $1,575 ($2,100 less a 25% tax credit from the government). Based on an energy audit, the existing water heater uses 190 kilowatt hours (kWh) of electricity per month, so at $0.12 per kWh, the cost of operating the water heater is $22.8 per month. Assuming the solar panels can save the entire cost of heating water with electricity, answer the following questions. a. What is the simple payback period for the solar panels? b. What is the IRR of this investment if the solar panels have a life of 12 years? a. The simple payback period is months Stratosphere Company acquires its only building on January 1, Year 1, at a cost of $4,000,000. The building has a 20-year life, zero residual value, and is depreciated on a straight-line basis. The company adopts the revaluation model in accounting for buildings. On December 31, Year 2, the fair value of the building is $3,780,000. The company eliminates accumulated depreciation against the building account at the time of revaluation. The company's accounting policy is to reverse a portion of the revaluation surplus account related to increased depreciation expense. On January 2, Year 4, the company sells the building for $3,500,000 Required: Determine the amounts to be reflected in the balance sheet related to this building for Years 1-4 in the following table. (Use parentheses to indicate credit amounts.) Retaine Revaluati Accumulat ed Depreciati on on Inco Carrying Amount Earnin gs Date Cost Surplus me January 1, Year 1 $4.000.000 $4,000,000 December 31, Year 1 $200,000 3,800,000 $0 Balance December 31, Year 2 Balance December 31, Year 3 Balance January 2, Year 4 Balance While hiking, you are bitten by a poisonous snake. What is the first medical treatment your doctor should implement before you are harmed by the snake venom? Group of answer choices, pick one: cut and bleed the bitten area give you a red blood cell transfusion inject you with total gamma globulins inject you with antibodies against snake venom give you a strong dose of antibiotics Which of the following are activated by many receptor tyrosine kinases (RTKs)?-the MAP-kinase signaling module;-phosphoinositide 3-kinase;-the monomeric GTP-binding protein Ras;-phospholipase C it was observed that the atoms of a substance had so much energy that it separated the electrons and protons of the atom. what is most likely the state of matter of the substance? Consider the following statements: (a) Average inventories turnover period is an example of investment ratio. (b) Interest cover ratio is an example of financial gearing ratio Select one: a. (a) True; (b) True b. (a) False; (b) False c. (a) True; (b) False d. (a) False; (b) True Kitchenaid will discontinue the bisque color for its dishwashers due to reports suggesting it is not popular west of the Mississippi unless more than 30% of its customers in states east of the Mississippi prefer it (to make up for lost sales elsewhere). As part of the decision process, a random sample of 500 customers east of the Mississippi is selected and their preferences are recorded. of the 500 interviewed, 185 said they prefer the bisque color. 1. (4 pts) state the null and alternative hypotheses in words with context.