Answer:
9780 units
Explanation:
Calculation to determine what The budgeted production units for August are:
Using this formula
Budgeted production in August= Budgeted sales + Desired ending inventory - Beginning inventory
Let plug in the formula
Budgeted production in August= $10,700 + ($6,100*20%) - ($10,700*20%)
Budgeted production in August=$10,700 + $1,220- $2,140
Budgeted production in August= 9780 units
Therefore The budgeted production units for August are:9780 units
Bond X is noncallable and has 20 years to maturity, a 11% annual coupon, and a $1,000 par value. Your required return on Bond X is 12%; if you buy it, you plan to hold it for 5 years. You (and the market) have expectations that in 5 years, the yield to maturity on a 15-year bond with similar risk will be 7%. How much should you be willing to pay for Bond X today
Answer:
Present value = $1,170.68
Explanation:
The value of the bond in 5 years will be:
PV of face value = $1,000 / (1 + 7%)¹⁵ = $362.45
PV of coupon payments = $110 x 9.1079 (PVIFA, 15 periods, 7%) = $1,001.87
Total value = $1,364.32
The current value of the bond is:
PV of face value = $1,364.32 / (1 + 12%)⁵ = $774.15
PV of coupon payments = $110 x 3.6048 (PVIFA, 5 periods, 12%) = $396.53
Present value = $1,170.68
Some portion of fixed assets and the nonseasonal portion of current assets are financed with long-term capital, and all seasonal needs of current assets and the remaining portion of fixed assets are financed with short-term loans. Which current asset financing policy is consistent with this statement
Answer: Aggressive approach
Explanation:
With an Aggressive approach to financing, the management is trying to take advantage of the fluctuations in interest rates by using short term loans to finance some parts of fixed assets as well as current assets. This is what is happening here so the management must be using aggressive financing.
This is unlike the conservative approach where fixed assets are financed with long term financing like stocks and bonds with the logic being that both of them have similar lifetimes and so will supply adequate cashflow for the payment of interest overtime.
Which has a direct upon the environment? A. Business operations b. Taxation C. Presidential elections D. None of the above
Answer:
creo que la A
Explanation:
porque por que ahi se buscaria lo que es mas barato y que es mejor para la empresa asi que en esos casos es donde se pone al medio ambiente en riesgo ya que para estos tienen menor importnciaa
Hadley Company is considering the disposal of equipment that is no longer needed for operations. The equipment originally cost $600,000 and accumulated depreciation to date totals $460,000. An offer has been received to lease the machine for its remaining useful life for a total of $290,000, after which the equipment will have no salvage value. The repair, insurance, and property tax expenses that would be incurred by Hadley on the machine during the period of the lease are estimated at $75,800. Alternatively, the equipment can be sold through a broker for $230,000 less a 10% commission. Required: Prepare a differential analysis report, dated June 15. Use a minus sign to indicate costs or a negative impact on income. Below the report, indicate whether the equipment should be leased or sold.
Answer and Explanation:
The preparation of the differential analysis report is presented below:
Particulars Lease Equipment Sell Equipment Differential Effect on Income
(Alternative 1) (Alternative 2) (Alternative 2)
Revenues $290,000 $230,000 ($60,000)
Less: Costs -$75,800 $23,000 ($52,800)
(10% of $230,000)
Income (Loss) $214,200 $207,000 ($7,200)
Based on the above report, the equipment should be leased as it generated more profit as compared to sell of an equipment
The Panama Canal has completed a tremendous expansion the will allow nearly double the capacity than previously available. What are the benefits and challenges from this expansion
Answer:
The answer is below
Explanation:
There are various benefits and challenges from the Panama Canal expansion
Some of the Benefits are:
1. There will be rapid growth in the trading activities within the Caribbean region
2. Pacific-Atlantic trade will increase generally, which will benefit the stakeholders and countries within the area including their seaports in terms of high concentration of goods, lower cost, and rapid circulation
Some of the Challenges are:
1. The need to adjust to logistical and services platforms by the Caribbean countries
2. How the stakeholders and countries around the region support and absorb the tremendous increase that is expected in the mobilization of containers.
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Someone offers to buy your car for five, equal annual payments, beginning 6 years from today. If you think that the present value of your car is $15,000.00 and the interest rate is 10%, what is the minimum annual payment that you would accept
Answer:
The minimum annual payment that you would accept is $7,010.
Explanation:
Using the future value formula, we have:
Future value of the car in 6 years = Present value * (100% + Interest rate)^number of years = $15,000 * (100% + 10%)^6 = $26,573.42
Using the present value of an ordinary annuity formula, we have:
Minimum annual payment = Future value of the car in 6 years / ((1 - (1 / (100% + Interest rate))^number of years to pay equal amount) / Interest rate) = $26,573.42 / ((1 - (1 / (100% + 10%))^5) / 10%) = $26,573.42 / 3.79078676940845 = $7,010
Therefore, the minimum annual payment that you would accept is $7,010.
Green Goddess Developers is a large nationwide landscape company with home offices in Libertyville, IL. The local media often gushes over the gorgeous landscaping that surrounds the 30-acre headquarters. At the back end of the complex are several large warehouses and garages that hold large equipment. The grounds surrounding the warehouses look like a park. Across the street from the garages are several shops and businesses. The CEO, Patty, often talks about how thankful she is that the town permits her to store equipment at that site, and vows to always maintain the premises for her neighbors, not to mention that she asks 100 employees to come to work there every day. Which of the following statements describes Patty's business philosophy?
A. Patty is a nice woman whose company made a lot of money, so she is willing to spread it around.
B. Patty understands that even though it may cost a little more, stakeholder considerations are very important if you want your business to thrive.
C. Patty is more concerned about town politics than about the company profits. She should ask his employees if they would rather have that money in their pockets than on the lawns.
D. Patty is taking a business risk that her trucks and equipment will not make too much noise as they enter and exit the garages.
A borrower obtains a one-year ARM which starts at 4.0% and has a margin of 3.0% and 2/6 caps. At the end of the first year, the index is 5.0%. What is the interest rate after the first adjustment
Answer:
The answer is "6".
Explanation:
In the given question the response is 6 because the new rate is the lower of the index + margin (in that case 5 + 3 = 8) whenever the interest rate changes as well as the current rate + cap (in that instance the value 4 + 2 = 6). Its rate of interest would also be 6 percent after the very first adjustment.
At the beginning of the year, a company estimated a predetermined plantwide overhead rate of $8.50 per machine-hour. Job X used 16 machine-hours and it was charged $200 and $288 for direct materials and direct labor, respectively. What is the total job cost for Job X?
Answer:
Total cost= $624
Explanation:
Giving the following information:
Predetermined plantwide overhead rate= $8.50 per machine hour.
Job X:
Number of machine hours= 16
Direct materials= $200
Direct labor= $288
First, we need to allocate overhead to Job X:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 8.5*16
Allocated MOH= $136
Now, the total cost:
Total cost= 136 + 200 + 288
Total cost= $624
Prepare the journal entries to record the following transactions for Reese Company, which has a calendar year end and uses the straight-line method of depreciation
On September 30, 2017, the company sold old equipment for $46,000. The equipment was purchased on January 1, 2015, for $96,000 and was estimated to have a $16,000 salvage value at the end of its 5-year life. Depreciation on the equipment has been recorded through December 31, 2016.
Answer:
To explain the answer is given as follows,
Explanation:
Tax Savings. John and Cheryl just borrowed $30,000 on a home equity line of credit. The interest rate for the loan is 6.75% for the entire year, and they took out the loan on May 1. John and Cheryl are in the 28% tax bracket. What will be their tax savings for the first year ending December 31st
Answer:
$378
Explanation:
Interest expenses in current year = Amount of borrowing*Interest rate*8 month/12 months
Interest expenses in current year = $30,000 * 6.75% * 8/12
Interest expenses in current year = $1,350
Tax saving on interest expenses = Interest expenses * Tax rate
Tax saving on interest expenses = $1,350 * 28%
Tax saving on interest expenses = $378
So, their tax savings for the first year ending December 31 will be $378.
It is sometimes suggested that the Fed should try to achieve price stability: that is, 0% inflation. If the velocity of money is constant, does zero-inflation mean the money supply should never change?
Answer:
Money supply should not change
Explanation:
Money supply should not change given that when the velocity ( flow ) of money is constant the Inflation is at zero ( 0% )
This is because the increase in supply of money without an appropriate increase in the economy of the country will be lead to inflation. To avoid any chance of inflation the velocity of money should remain constant.
Prepare journal entries to record each of the following sales transactions of EcoMart Merchandising.EcoMart uses a perpetual inventory system and the gross method.Oct. 1 Sold fair trade merchandise for $1,500, with credit terms n∕30, invoice dated October 1. Thecost of the merchandise is $900.6 The customer in the October 1 sale returned $150 of fair trade merchandise for full credit. Themerchandise, which had cost $90, is returned to inventory.9 Sold recycled leather merchandise for $700, with credit terms of 1∕10, n∕30, invoice datedOctober 9. Cost of the merchandise is $450.11 Received payment for the amount due from the October 1 sale less the return on October 6.
Answer:
EcoMart Merchandising
Journal Entries
Oct. 1 Debit Accounts Receivable $1,500
Credit Sales Revenue $1,500
To record the sale of goods on account with credit terms n∕30, invoice dated October 1.
Debit Cost of goods sold $900
Credit Inventory $900
To record the cost of goods sold.
Oct. 6 Debit Sales Returns $150
Credit Accounts Receivable $150
To record the return of some goods sold on account.
Debit Inventory $90
Credit Cost of goods sold $90
To record the cost of goods returned.
Oct. 9 Debit Accounts Receivable $700
Credit Sales Revenue $700
To record the sale of recycled goods with credit terms of 1∕10, n∕30, invoice dated October 9
Debit Cost of goods sold $450
Credit Inventory $450
To record the cost of the goods sold.
Oct. 11 Debit Cash $1,350
Credit Accounts Receivable $1,350
To record the receipt of cash on account.
Explanation:
a) Data and Analysis:
Oct. 1 Accounts Receivable $1,500 Sales Revenue $1,500 with credit terms n∕30, invoice dated October 1.
Cost of goods sold $900 Inventory $900
Oct. 6 Sales Returns $150 Accounts Receivable $150
Inventory $90 Cost of goods sold $90
Oct. 9 Accounts Receivable $700 Sales Revenue $700 with credit terms of 1∕10, n∕30, invoice dated October 9
Cost of goods sold $450 Inventory $450
Oct. 11 Cash $1,350 Accounts Receivable $1,350
Chris Anderson bought a Honda Civic for $17,345. He put down $6,000 and financed the rest through the dealer at an APR of 8.6 percent for four years. What is the effective annual interest rate (EAR) if the loan payments are made monthly
Chris Anderson bought a Honda Civic for $17,345. He put down $6,000 and financed the rest through the dealer at an APR of 8.6 percent for four years. The effective annual interest rate (EAR) if the loan payments are made monthly as calculated below.
The formula to find the monthly interest rate (MIR) from the annual percentage rate (APR) is as follows,
[tex]MIR = (1 + APR)^(1/12) - 1[/tex]
Given,
APR = 8.6 percent,
we convert it to a decimal by dividing by 100:
APR = 8.6% = 0.086
Now, calculate the Monthly Interest Rate (MIR),
[tex]MIR = (1 + 0.086)^(1/12) - 1[/tex] = 0.006997
To convert the MIR to EAR, we use the following formula.
[tex]EAR = (1 + MIR)^12 - 1[/tex]
Now, calculate the EAR,
[tex]EAR = (1 + 0.006997)^12 - 1[/tex]
=0.0851 or 8.51%
Therefore, the effective annual interest rate (EAR) for the loan with an APR of 8.6 percent where the payments are made monthly is approximately 8.51%
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Skolits Corp. has a cost of equity of 11.5 percent and an aftertax cost of debt of 4.35 percent. The company's balance sheet lists long-term debt of $325,000 and equity of $585,000. The company's bonds sell for 96.1 percent of par and market-to-book ratio is 2.71 times. If the company's tax rate is 39 percent, what is the WACC
Answer:
10.32%
Explanation:
Given :
Long term debt = 325000
Percent of par = 96.1% = 0.96
Market to book ratio = 2.71
Equity = 585000
Cost of debt = 0.0435
Cost of equity = 0.115
Market value of debt:
Bond sell for percent of par × long-term debt
0.96 × $325000
= $312,000
Market value of equity:
Equity × Market-to-book ratio
$585,000 × 2.71
$1585350
Total market value:
Market value of debt + Market value of equity
$312000 + $1585350
= $1897350
Weight of debt:
Market value of debt / Total market value
$312000 ÷ $1897350
= 0.1644
Weight of equity:
= 1 - Weight of debt
= 1 - 0.1644
= 0.8356
WACC:
= (weight of equity × cost of equity) + (weight of debt × cost of debt )
= (0.8356 × 0.115)+(0.1644 × 0.0435)
= 0.1032
= 10.32%
An analyst gathered the following information about a company: 01/01/04 - 50,000 shares issued and outstanding at the beginning of the year 04/01/04 - 5% stock dividend 10/01/04 - 10% stock dividend What is the company's weighted average number of shares outstanding at the end of 2004
Answer:
Company A
The company's weighted average number of shares outstanding at the end of 2004 is:
= 53,188 shares.
Explanation:
a) Data and Calculations:
Date Description Weight Weighted Average
01/01/04 - 50,000 shares issued
and outstanding 12/12 = 50,000
04/01/04 - 5% stock dividend (2,500) 9/12 = 1,875
10/01/04 - 10% stock dividend (5,250) 3/12 = 1,313
Total weighted average number of shares = 53,188
Bank ABC has checkable deposits of $415 million and total reserves of $50 million. The required reserve ratio is 9 percent. The bank has excess reserves of Group of answer choices $14,550,000. $12,650,000. $365,000,000. There is not enough information provided to answer this question. $45,500,000.
Answer:
$12,650,000.
Explanation:
Reserves is the total amount of a bank's deposit that is not given out as loans
Reserves = Deposits - outstanding loans
Required reserves is the percentage of deposits required of banks to keep as reserves by the central bank
Required reserves = reserve requirement x deposits
0.09 x 415 million = 37.35 million
Excess reserves is the difference between reserves and required reserves
50 million - 37.35 million = 12.65 million
You made a $500,000 loan at 10% interest when the CPI was 120. The loan was repaid five years after that, when the CPI was 130. Assume the tax on interest income is 20%. Calculate the tax you owe the government.
Answer:
10000 before inflation, 10833 after inflation
Explanation:
P = 500000
1 = 10%
Interest calculated = 500000x0.1
= $50000
20%x50000 = $10000
Rate of inflation = (130-120)/120 = 0.833
0.833x100%
= 8.333%
What has to be paid to government
= 10000+(8.333*10000)
= 10833
Before inflation, you owe $10000
After inflation you owe $10833
Why doesn’t the fact that the "inflation solution" is only a temporary solution stop many developing countries from using it? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box. check all that apply Governments often feel that they must increase government expenditures or be voted out of office.unanswered The "inflation solution" can be a permanent solution if done correctly.unanswered Central banks in developing countries often do not enjoy full independence, and are used by corrupt governments to finance deficit spending.unanswered Governments act to maintain their positions in power, and often feel that in order to do so, they have no choice but to print more money.unanswered The government is the only actor in the economy that gains from an inflation tax.unanswered
Answer:
Government often feel that they must increase government expenditures or be voted out of office.
Central banks in developing countries often do not enjoy full independence, and are used by corrupt government to finance deficit spending.
Explanation:
Inflation is the decline in purchasing power of a currency. The increase in inflation lead to less spending. Government increase inflation to cease increased money flow in the country. The prices of goods and services are increase in the country when inflation increases.
The following labor standards have been established... The following labor standards have been established for a particular product: Standard labor hours per unit of output 4.4 hours Standard labor rate $ 16.70 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 5,200 hours Actual total labor cost $ 87,360 Actual output 1,100 units
Required:
a. What is the labor rate variance for the month?
b. What is the labor efficiency variance for the month? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
Answer:
Results are below.
Explanation:
Giving the following information:
Standard labor hours per unit of output 4.4 hours
Standard labor rate $ 16.70 per hour
Actual hours worked 5,200 hours
Actual total labor cost $ 87,360
Actual output 1,100 units
To calculate the direct labor efficiency and rate variance, we need to use the following formulas:
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (16.7 - 16.8)*5,200
Direct labor rate variance= $520 unfavorable
Actual rate= 87,360/5,200= $16.8
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (1,100*4.4 - 5,200)*16.7
Direct labor time (efficiency) variance= $6,012 unfavorable
A part of financial report of company Z is given below. Calculate days of supply for company Z.
Value of finished goods on-hand $2,930
Value of production materials on-hand $1,640
Value of work-in-process inventory $710
Cost of goods sold $12,500
Net revenue $24,800
a. More than 0 but less than or equal to 60
b. More than 60 but less than or equal to 100
c. More than 100 but less than or equal to 140
d. More than 140 but less than or equal to 200 More than 200
Answer:
Company Z
The days of supply for Company Z are:
d. More than 140 but less than or equal to 200
Explanation:
a) Data and Calculations:
Value of finished goods on-hand $2,930
Value of production materials on-hand $1,640
Value of work-in-process inventory $710
Total inventory = $5,280
Cost of goods sold $12,500
Net revenue $24,800
Days of Supply = Average Inventory/Cost of goods sold * 365
= $5,280/$12,500 * 365
= 154.2 days
b) The Inventory Days of Supply for Company Z or Days Inventory Outstanding" or Inventory Period measures the average number of days Company Z holds its inventory before selling it. As an efficiency ratio, the ratio measures the number of days Company Z's funds are held up in inventory before actual sales to customers.
Find the present value of $3,900 under each of the following rates and periods: (Round your final answer to the nearest penny.) a. 8.9 percent compounded monthly for five years. Present value $ b. 6.6 percent compounded quarterly for eight years. Present value $ c. 4.3 percent compounded daily for four years. Present value $ d. 5.7 percent compounded continuously for three years. Present value $
Answer:
(a) 8.9 percent compounded monthly for five years is $2,503.32.
(b) 6.6 percent compounded quarterly for eight years is $2,310.09.
(c) 4.3 percent compounded daily for four years is $3,283.75.
(d) 5.7 percent compounded continuously for three years is $3,287.05
Explanation:
The Present Value is calculated by using:-
Present Value = Future Value / (1 + r)n
Here, r is the Interest Rate and n is the number of periods.
(a). 8.9 percent compounded monthly for five years:-
Future Value = $3,900
Interest Rate (r) = 0.741667% [8.90% / 12 Months])
Number period (n) = 60 Years [5 Years x 12]
Present Value = Future Value / (1 + r)n
[tex]= $3,900 / (1 + 0.00741667)60\\= $3,900 / 1.5579298\\= $2,503.32[/tex]
(b). 6.6 percent compounded quarterly for eight years:-
Future Value = $3,900
Interest Rate (r) = 1.65% [6.60% / 4]
Number period (n) = 32 Years [8 Years x 4]
Present Value = Future Value / (1 + r)n
[tex]= $3,900 / (1 + 0.0165)32\\= $3,900 / 1.688248\\= $2,310.09[/tex]
(c). 4.3 percent compounded daily for four years
Future Value = $3,900
Interest Rate (r) = 0.0117808% [4.30% / 365 Days]
Number period (n) = 1460 Years [4 Years x 365 Days]
Present Value = Future Value / (1 + r)n
[tex]= $3,900 / (1 + 0.000117808)1460\\\\= $3,900 / 1.187665\\\\= $3,283.75[/tex]
(d). 5.7 percent compounded continuously for three years
Future Value = $3,900
Interest Rate (r) = 0.0156164% [5.70% / 365 Days]
Number period (n) = 1095 Years [3 Years x 365 Days]
Present Value = Future Value / (1 + r)n
[tex]= $3,900 / (1 + 0.000156164)1095\\= $3,900 / 1.1864749\\= $3,287.05[/tex]
Hot Topic has a policy of promoting from within. If Hot Topic uses clearly defined selection criteria and a transparent process, employees are likely to think the process is fair and to experience ___, even if they are not chosen for promotion.
a. procedural justiceb. interactional justicec. equityd. positive inequitye. distributive justice
Answer:
a. procedural justice
Explanation:
Procedural justice can be defined as an idea of fairness in a process and how this perception of fairness is greatly influenced by the quality of service, experience and transparency received by the people. Thus, it impacts the perception that people have about those in a place of authority with respect to decision-making and processes.
Hence, if Hot Topic uses clearly defined selection criteria and a transparent process, employees are likely to think the process is fair and to experience procedural justice, even if they are not chosen for promotion
The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted direct labor-hours 9,200 8,800 9,100 9,500 The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $3.50 per direct labor-hour and its total fixed manufacturing overhead is $60,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $15,000 per quarter.
Required:
1. Prepare the company’s manufacturing overhead budget for the upcoming fiscal year.
2. Compute the company’s predetermined overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year.
Answer:
Results are below.
Explanation:
Giving the following information:
1st Quarter 2nd Quarter 3rd Quarter 4th
Quarter Budgeted direct labor-hours 9,200 8,800 9,100 9,500
The variable portion of its predetermined manufacturing overhead rate is $3.50 per direct labor hour.
Total fixed manufacturing overhead= $60,000
First, we need to calculate the total variable and fixed overhead for the year:
Total variable overhead= (9,200 + 8,800 + 9,100 + 9,500)*3.5= $128,100
Total fixed overhead= 60,000*4= $240,000
Total budgeted overhead= $368,100
Now, the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (240,000 / 36,600) + 3.5
Predetermined manufacturing overhead rate= $10.06 per direct labor hour
according to investment digest (diversification and the risk/reward relationship, winter 1994, 1-3), the mean of the annual return for common stocks from 1926 to 1992 was 16.5% and the standard deviation of the annual return was 19%.what is the probability that the stock returns are greater than 17%.
Answer:
0.488
Explanation:
Mean annual return for common stocks = 16.5%
standard deviation of annual return = 19%
Determine the probability that the stock returns are greater than 17%
P ( Stock returns > 17% )
stock returns = x
= 1 - p ( x - μ / 6 < 17 - 16.5 / 19 )
∴ 1 - p ( Z < 0.03 )
= 1 - 0.5120 = 0.488
Determining opportunity cost
Juanita is deciding whether to buy a dress that she wants, as well as where to buy it. Three stores carry the same dress, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $102 for the dress:
Store Travel Time Each Way Price of a Dress
(Minutes) (Dollars per dress)
Local Department Store 15 102
Across Town 30 87
Neighboring City 60 63
Juanita makes $58 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $58 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.
Store Opportunity Cost of Time Price of a Suit Total Cost
(Dollars) (Dollars per suit) (Dollars)
Local Department Store 103
Across Town 88
Neighboring City 63
Assume that Juanita takes opportunity costs and the price of the suit into consideration when she shops. Juanita will minimize the cost of the suit if she buys it from the:______. .
1. The opportunity cost and total cost table is shown in the attached image below. 2. Juanita will minimize the cost of the dress if she buys it from the: Neighboring City.
The value of the next best alternative foregone when a decision is made to opt for resources like time, money, or effort to a certain option is known as opportunity cost. In other words, it is the cost of choosing one choice over another while considering the benefits and drawbacks of both options.
As there are only so many resources available, selecting one choice frequently implies forgoing its advantages. It's a manner of approaching decision-making that considers both the advantages and disadvantages of various options
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The complete question might be:
Determining opportunity cost Juanita is deciding whether to buy a dress that she wants, as well as where to buy it. Three stores carry the same dress, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $103 for the dress: Juanita makes $16 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $16 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling.
1.Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.
2. Assume that Juanita takes opportunity costs and the price of the dress into consideration when she shops. Juanita will minimize the cost of the dress if she buys it from the :______.
A major difference between companies that provide services and companies that manufacture or sell goods is that those that manufacture or sell goods must account for: _______.
a. gains and losses
b. operating expenses
c. revenue
d. inventory
Answer:
d. inventory
Explanation:
Companies can either provide services (such as financial services, consultancy services, and so on), or engage in manufacturing and sales of products.
Bother of these types of companies must account for revenue, losses, and operating expenses.
However the feature unique to manufacturing and sales companies is that they must also account for inventory.
When products are manufactured they must be stored before being shipped out to middle men or consumers.
Companies that sell goods must also receive goods that will be stored as inventory for.the period it takes to sell the product to customers after which inventory is restocked.
You plan to set up an endowment at your alma mater that will fund $207,000 of scholarships each year indefinitely. If the principal (the amount you donate) can be invested at 6.0 percent, compounded annually, how much do you need to donate to the university today, so that the first scholarships can be awarded beginning one year from now
Answer: $3,450,000
Explanation:
You need to donate the present value of the indefinite amount today so that the first scholarships can start to be awarded in the next year.
An indefinite amount is known as a perpetuity and the present value of a perpetuity is:
= Perpetuity / Interest rate to be compounded
= 207,000 / 6%
= $3,450,000
Match each marketable security with its description. (a) Eurodollar deposit (b) Banker's acceptance (c) Federal agency issue (d) Commercial paper (e) Repurchase agreement (f) Treasury bill (g) Money market mutual fund (h) Negotiable certificate of deposit (i) Treasury note 1. ________ A short term, unsecured promissory note issued by a corporation. 2. ________ An obligation of the U.S. Treasury with common maturities of 91 to 182 days. 3. ________ A portfolio of marketable securities. 4. ________ An arrangement whereby a bank or securities dealer sells specific marketable securities to a firm and agrees to purchase them in the future. 5. ________ An obligation of the U.S. Treasury with mutual maturities of between one and seven years. 6. ________ Negotiable instrument evidencing the deposit of a certain number of dollars in a commercial bank. 7. ________ An instrument issued by the Federal National Mortgage Association. 8. ________ Funds deposited in banks located outside the U.S. and denominated in U.S. dollars. 9. ________ Short term credit arrangement used by businesses to finance transactions with foreign countries or firms with unknown credit capacities.
Answer: See explanation
Explanation:
1. A short term, unsecured promissory note issued by a corporation. = Commercial paper
2. An obligation of the U.S. Treasury with common maturities of 91 to 182 days. = Treasury bill
3. A portfolio of marketable securities. = Money market mutual fund
4. An arrangement whereby a bank or securities dealer sells specific marketable securities to a firm and agrees to purchase them in the future. = Repurchase agreement
5. An obligation of the U.S. Treasury with mutual maturities of between one and seven years. = Treasury note
6. Negotiable instrument evidencing the deposit of a certain number of dollars in a commercial bank. = Negotiable certificate of deposit
7. An instrument issued by the Federal National Mortgage Association. = Federal agency issue
8. Funds deposited in banks located outside the U.S. and denominated in U.S. dollars. = Eurodollar deposit
9. Short term credit arrangement used by businesses to finance transactions with foreign countries or firms with unknown credit capacities = Banker's acceptance.
