intends to develop and sell seven units the following year. As a result, if a special order is approved, operational income would increase by $840,000.
By produce, what do you mean?produced, producing is a verb that takes an object. to induce steam to be produced; to cause something to arise. to create anything by intelligence or artistic ability: to make a fantastic painting. to build cars for export; to manufacture; to make.
Briefing
The computation is shown below:
Offer price per unit $60
Less: Variable costs per unit:
Direct materials ($20)
Direct labor ($14)
Variable overhead ($12)
Variable selling $0
Incremental profit per unit (a) $14
Units offered to sell (b) 60,000
Effect on Operating Income (Increase) (a × b) $840,000
Therefore, in the case when the special order is accepted, the effect on operating income would be increase by $840,000
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what is the impact on economic capital of a 25 basis point decrease in interest rates if the fi is holding a 20-year, fixed-rate, 11 percent annual coupon bond selling at a par value of $100,000?
Positive $2,024 shows that bond value increased by $2,024 due to decrease in interest rates by 25 basis point as impact on economic capital.
What is interest rate?
The interest rate formula aids in determining the loan repayment amount as well as the interest on investments made in fixed deposits, mutual funds, etc. Calculating the interest on credit cards is made easier by using the interest rate formula.
Decrease of 25 basis point decrease in interest rates ,means 0.25% decrease in YTM yield to maturity or market interest rates , 100 basis points means 1% .
By calculating bond value at a lower YTM or market interest rate and contrasting new bond value with existing bond value, the impact on economic capital will be determined.
Since the bond in the example was sold for par value, the yearly coupon rate, which was previously 11%, has now been cut by 0.25% to 11%-0.25%, or 10.75%, but since the coupon has not changed in our case, it will still be 11%.
Annual coupon = Face value of bond x Coupon Rate = 100,000 x 11% = $11,000
YTM is 10.75% p.a (annual) reduced YTM or interest rate
n= no. of coupon = No. Of years left = 20
bond price = $11000 x 8.09529899 + 100000 x 0.12975535
= $102,024
Impact on economic capital = New Bond value - old Bond value
= $102,024 - $100,000
= $2,024
positive $2,024 shows that bond value increased by $2,024 due to decrease in interest rates by 25 basis point as impact on economic capital.
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strategy is an integrated and coordinated set of commitments and actions to develop core competencies and gain a competitive advantage. b. core competencies are resources and capabilities that can be developed through r
The goal of company strategy is to create core skills and acquire a competitive advantage. A coordinated and integrated set of promises and actions is a strategy. If a resource or skill is precious, uncommon, expensive to duplicate, and non-replaceable, it qualifies as a core competency.
What is strategy and example?A company's strategy refers to its long-term goals as well as the strategy it has in place to reach those goals. In other terms, it serves as an example of the plan used to accomplish the stated objective. A tactic is a specific action that is carried out in order to achieve the goals set forth in the strategy. All common elements of strategy include establishing objectives and goals, selecting actions to achieve the goals, then allocating to carry out the tasks.
Why is strategy very important?Our business's purpose is defined and given a set of values by our strategy. It facilitates our comprehension of what true success implies. It offers a route for our company, outlines our destination, and recommends helpful rest stops along the way. The secret to determining the most crucial components of a strategic plan is to select goals and objectives that maximize your potential while minimizing resource usage and risk.
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describe the options that you have if the goods that you receive as a buyer are nonconforming to the goods described within a written sales contract?
Nonconforming goods are delivered that don't satisfy the specifications (quantities and qualities) of the requested goods defined in a purchase contract.
What are the remedies available to a buyer?1. Lawsuit for Damages for Non-Delivery - If the seller wilfully fails or declines to deliver the products to the buyer, the buyer may bring a lawsuit for damages for non-delivery. Additionally, in the event of non-delivery, the buyer has the right to get their money back, if they have already paid the price.
2. Lawsuit for price - In the event that the buyer has already paid the price but the items are not delivered to him, he may sue to reclaim the money.
3. Suit for specific performance - When the goods are specified or determinable, the buyer may bring legal action against the seller to require him to fulfil the same goods as agreed upon under the terms of the contract. Only in cases where the products are specific or known, does the court issue orders for specific performance and damages.
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Fill in the missing values in the following table, selecting the answers closest to the values you calculate.
Year
Quantity of Money
Velocity of Money
Price Level
Quantity of Output
Nominal GDP
(Dollars)
(Dollars)
(Cell phones)
(Dollars)
2017 200 ??
5.00 400 ?
2018 202 10 ?? 400 ??
The money supply grew at a rate of (.5%, 1%, 1.25%, 101%) from 2017 to 2018. Since cell phone output did not change from 2017 to 2018 and the velocity of money (increased, decreased, remained the same), the change in the money supply was reflected (partially, entirely) in changes in the price level. The inflation rate from 2017 to 2018 was (.5%,1%,1.25%,101%).
The velocity of money in 2017 is 10.
The nominal GDP in 2017 is $2000.
The price level in 2018 is $5.05.
The nominal GDP is $2020.
The money supply grew at a rate of 1% from 2017 to 2018. Since cell phone output did not change from 2017 to 2018 and the velocity of money remained the same, the change in the money supply was reflected entirely in changes in the price level. The inflation rate from 2017 to 2018 was 1%.
What is the nominal GDP and the velocity of money?Nominal GDP is the total value of goods and services produced by a country using current year prices. Nominal GDP is the product of the price level and the quantity of output.
Nominal GDP = price x quantity of output
Nominal GDP in 2017 = $5 x 400 = $2000
Velocity measures how fast money changes hands in the economy. According to the quantity theory of money, the product of velocity and the quantity of money is equal to nominal GDP.
Velocity x quantity of money = price level x quantity of output
Velocity x quantity of money = nominal GDP
Velocity = nominal GDP / quantity of money
Velocity in 2017 = $2000 / $200 = 10
Changes in price levels is used to measure the rate of inflation in the economy.
Price level = (Velocity x quantity of money) / quantity of output
Price level in 2018 = (202 x 10) / 400 = 5.05
Nominal GDP in 2018 = 5.05 x 400 = 2020
Inflation rate increase from 2017 to 2018 = (price level in 2018 / price level in 2017) - 1
Inflation rate increase from 2017 to 2018 = (5.05 / 5) - 1 = 0.01 = 1%
Increase in money supply from 2017 to 2018 = (quantity of money in 2018 / quantity of money in 2017) - 1
Increase in money supply from 2017 to 2018 = (202 / 200) - 1 = 0.01 = 1%
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a company had net cash flows from operations of $143,000, cash flows from financing of $376,000, total cash flows of $569,000, and average total assets of $3,880,000. the cash flow on total assets ratio equals:
Option B is correct. A company had net cash flows from operations of $143,000, cash flows from financing of $376,000, Total cash flows of $569,000, and average total assets of $3,880,000. the cash flow on total assets ratio equals 4.1%.
Net cash flows from operations = 133000
Divide by Average total assets = 3280000
Cash flow on total assets ratio = 4.1%
Option B 4.1% is correct.
Cash float is a degree of ways awful lot cash a business introduced or spent in general over a time period. Coins go with the flow is generally damaged down into coins glide from working sports, making investment sports, and financing sports on the announcement of cash flows, a common economic assertion.
Cash drift from operations is comprised of fees made as part of the regular route of operations. Examples of these coins outflows are payroll, the fee of goods sold, hire, and utilities. Coins outflows can range considerably whilst business operations are fairly seasonal.
A coins flow declaration suggests the exact amount of a company's cash inflows and outflows over a time frame. The earnings announcement is the maximum commonplace financial announcement and shows an enterprise's revenues and total costs, along with noncash accounting, such as depreciation over a period of time.
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Complete Question:
A company had net cash flows from operations of $133,000, cash flows from the financing of $356,000, total cash flows of $539,000, and average total assets of $3,280,000. The cash flow on total assets ratio equals:
Multiple Choice
A). 16.4%.
B). 4.1%.
C). 3%.
D). 16.5%.
E). 24.7%
given the following financials and a 365-day year, what is the cash-to-cash cycle? sales: $50,002 cost of goods sold: $42,068 beginning inventory: $1,051 ending inventory: $1,301 receivables: $6,493 payables: $11,293
Required 1 Required 2 Use the information above to compute the number of days in the cash conversion cycle for each year.
Cash: What Is It?Currency or coins are considered legal tender and can be used to pay for goods, settle debts, or exchange services. In some cases, the value of assets that can be quickly converted into cash is also included, as provided by a corporation.
Why does cash matter in accounting?Cash accounting is used by companies that only record transactions once money has actually changed hands. Until payment is received or paid, these companies won't report income or expenses. It doesn't matter if the goods and services have been delivered or if the invoice has been sent.
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what is the future value of $5,300 deposited today and kept in an account for 30 years earning 11% per year?
Answer:
you multiply 5300 by 111 and divide by 100 . the answer is 5883.Subtract 5300 from it and multiply by 30.Add it to 5300.
