Answer:
Mathys Inc.
a. (1) Change in accounting principle, accounting estimate, or correction of an error:
1. Write-off of Accounts Receivable = Change in accounting estimate
2. Changes in depreciation policies = Changes in accounting estimate for the office furniture and the introduction of the sum-of-years' digit for the new leasing division's equipment.
3. Overstated Ending Inventory = Correction of an error
4. New accounting method for pre-production costs = Change in accounting estimate
5. Change from FIFO to LIFO = Change in accounting principle
6. Change from completed-contract method of accounting to the percentage-of-completion method = Change in accounting principle
a. (2) If Restatement of opening retained earnings is required:
1. No restatement of opening retained earnings is required.
2. No restatement of opening retained earnings is required.
3. Restatement of opening retained earnings is required.
4. No restatement of opening retained earnings is required.
5. Restatement of opening retained earnings is required.
6. Restatement of opening retained earnings is required.
b) December 31, 2016 Retained Earnings Adjustments:
3. Debit Retained Earnings = ($235,000)
5. Debit Retained Earnings = ($320,000)
6. Credit Retained EArnings = $1,075,000
Net effect on 2016 Retained Earnings = an increase of $520,000
Explanation:
a) Data:
1. December 31, 2016 Write-off of Receivable (Hendricks Inc.) = $820,000
2. Changes in depreciation policies:
a) Office Furniture and Fixtures 10-year to 8-year useful life: Effect on Retained Earnings at December 31, 2016 = $250,000 less. Effect on 2017 Income = $60,000 less.
b) Equipment: sum-of-the-years' digits depreciation method: Effect on 2017 income = $110,000 more.
3. Ending inventory for 2016 overstated by $235,000 Prior period adjustment.
4. Preproduction costs for furniture division: New accounting method. Effect on 2016 Retained earnings = $375,000 less.
5. Inventories for Nursery division, from FIFO to LIFO to match current costs with revenues. Effect on 2017, an increase in Earnings = $320,000.
6. Building Construction Division from completed-contract method of accounting to the percentage-of-completion method. Effect on Retained Earnings 2016 = $1,075,000 greater.
b) Mathys Inc. must correct accounting errors by adjusting previously issued financial statements retrospectively. An example of an accounting error is the overstatement of the ending inventory by $235,000. This implies that the 2016 Retained Earnings were overstated.
c) A good example of a change in accounting estimate is the change Mathys Inc. made of the office furniture's useful life from 10 years to 8. Such changes are not applied retroactively to prior years' financial statements.
d) When Marthys Inc. change the inventory valuation method from LIFO to FIFO, it made a change in an accounting principle. Such principle changes are done retroactively, with the restatement of the financial statements.
How would you make a convincing case that open trade in goods and services as well as free flow of foreign direct investment will enhance the well-being of (a) consumers, (b) pro-ducers, and (c) the government of countries? Give specific examples to prove your position.
Answer:
(a) consumers
Consumers are those who benefit the most from open trade and foreign direct investment. This is because these two economic policies increase the producion and delivery of goods and services, making them cheaper.
(b) producers
While some producers would be affected by open trade, most producers would benefit. Firms are allowed to specialize in producing those goods and services for which they have a competitive advantage, and they can also profit from increased foreign investment.
(c) the government of countries
Governments also benefit from these economic policies. They higher well-being of society means more government credibility, and the higher economic growth means more government revenue in the form of taxes.
The case that open trade in goods and services, as well as free flow of foreign direct investment, should be described below:
Consumers, producers, and government:Consumers are those who benefit the most from open trade and foreign direct investment. While some producers would be affected by open trade, most producers would benefit. Governments also benefit from these economic policies. The higher well-being of society means more government credibilitylearn more about the investment here: https://brainly.com/question/16822436?referrer=searchResults
"A customer has an existing short margin account with credits of $16,000 and a short position in ABC stock worth $10,000. The SMA in the account is $1,000. If the market value of ABC falls to $9,000, the equity is:"
Answer:
Equity= $7,000
Explanation:
A customer has an existing short margin account that contains credit of $16,000
The short position in ABC stock is worth $10,000
The SMA in the account is $1,000
Therefore, if the market value of ABC falls down to $9,000 then, the equity can be calculated as follows
Equity= $16,000-$9,000
=$7,000
Hence the equity is $7,000
g If the risk-free rate is 5%, return on the market is 8%, and beta is 0.5, a stock with a return of 7% is likely: Group of answer choices Correctly valued Undervalued None of the options Overvalued
Answer:
The stock is undervalued. As the required rate of return (6.5%) on market is less than the actual return (7%), the stock is said to be undervalued as it provides an actual return greater than the required rate of return.
Explanation:
To check if a stock is over valued, undervalued or correctly valued, we simply compare the required rate of return on a stock as measured by CAPM with the actual return on the stock.
We can calculate the required rate of return using CAPM equation. The formula for required rate of return under CAPM is,
r = rRf + Beta * (rM - rRF)
Where,
rRf is the risk free raterM is the return on marketr = 0.05 + 0.5 * (0.08 - 0.05)
r = 0.065 or 6.5%
As the required rate of return on market is less than the actual return, the stock is said to be undervalued as it provides an actual return greater than the required rate of return.
Answer:
Undervalued
Explanation:
to determine if the stock is overvalued or undervalued, we have to determine the expected rate of return using the CAPM and compare it with the return of the stock
Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
5% + 0.5(8% - 5%) = 6.5%
the stock is undervalued because 6.5% is less than 7%
You are the production head and you decide to introduce a new product in your production line. Market survey reveals that price of identical products in market is Rs. 40/unit and you decide to adopt that price. Cost survey shows that firm has to invest Rs. 620 as fixed cost to introduce the new product and variable cost are as follows; Output VC 0 00 100 280 200 480 300 640 400 820 500 1040 600 1300 700 1620 800 2020 900 2620 1000 3420
Answer:
the following table shows the profits generated by each output quantity, assuming selling price is Rs40. Since marginal costs of production are lower than selling price, the more you sell, the higher your profit. Profit is maximized at 1,000 units = Rs35,960
Explanation:
output variable costs fixed costs total revenue profits
0 00 620 0 (620)
100 280 620 4,000 3,100
200 480 620 8,000 6,900
300 640 620 12,000 10,740
400 820 620 16,000 14,560
500 1,040 620 20,000 18,340
600 1,300 620 24,000 22,080
700 1,620 620 28,000 25,760
800 2,020 620 32,000 29,360
900 2,620 620 36,000 32,760
1000 3,420 620 40,000 35,960
Colgate-Palmolive Company reports the following balances in its retained earnings.
($ millions) 2010 2009
Retained earnings $14,329 $13,157
During 2010, Colgate-Palmolive reported net income of $2,200 million.
a. Assume that the only changes affecting retained earnings were net income and dividends. What amount of dividends did Colgate-Palmolive pay to its shareholders in 2010?
b. This dividend amount constituted what percent of its net income? (Round your answer to one decimal place.)
Answer:
a. $1,028 million
b. 46.7%
Explanation:
a. Dividends are taken from the retained earnings and net income is added to the retained earnings. The formula for ending retained earnings is;
Ending retained earnings = Opening Retained earnings + Net Income - Dividends
14,329 = 13,157 + 2,200 - Dividends
Dividends = 13,157 + 2,200 - 14,329
Dividends = $1,028 million
b. Dividends as a percentage of income
= 1,028/2,200
= 0.467
= 46.7%
Which of these does NOT describe a friction that might prevent firms from choosing the optimal level of capital? A. Making too big of a change can be more expensive than making a few smaller changes. B. A firm might not be able to borrow enough to pay for the investments it wants to make. C. The firm likes its workers and doesn’t want to replace some jobs with machinery. D. Some capital is very specialized and cannot be re-sold in cases of economic downturns.
Answer:
C. The firm likes its workers and doesn’t want to replace some jobs with machinery.
Explanation:
Optimal level of capital simply refers to an ideal strategy used by a firm to raise capital. For example, a firm may decide between debt financing or equity financing, depending on the company's desired level of capital.
So, an already operational firm with that likes its workers and doesn’t want to replace some jobs with machinery has no direct relationship with its level of capital.
A brand manager for a certain company must determine how much time to allocate between radio and television advertising during the next month. Market research has provided estimates of the audience exposure for each minute of advertising in each medium, which it would like to maximize. Costs per minute of advertising are also known, and the manager has a limited budget of
Answer:
Optimization
Explanation:
Since we were told that the brand manager has limited budget of $25,000 which makes the manager to decide that television adverts is much more effective than radio adverts making him to allocates, at least 70% of the time to television, based on this I wiill run OPTIMIZATION test reason been that optimization will help and enable me to make the best or most effective use of available resource which will in turn Reduce costs while improving the performance which is why the brand manager decide to allocate 70% to Television in order to make the business more efficient as well as cost effective.
Your estimate of the market risk premium is 9%. The risk-free rate of return is 3.7% and General Motors has a beta of 1.7. According to the Capital Asset Pricing Model (CAPM), what is its expected return?
Answer:
19%
Explanation:
The market risk premium is 9%
The risk free rate of return is 3.7%
General motors have a beta of 1.7
Therefore, using the capital asset pticing model the expected return can be calculated as follows
= 3.7% + 1.7×9%
= 3.7% + 15.3%
= 19%
Hence the expected return is 19%
"PowerSurge, a company selling batteries in a monopolistically competitive market, collected the data below of revenues and costs. Assuming the firm is producing at the profit-maximizing level of output, calculate total profit for PowerSurge."
Answer:
Since the firm is maximizing its profit, it is producing and selling 40 units at $30 per unit, resulting in a net profit of $440.
Explanation:
Sine there is no information, I searched for a similar question:
Q Sales revenue Total costs Profit
10 $450 $340 $110
20 $800 $480 $320
30 $1,050 $620 $430
40 $1,200 $760 $440
50 $1,250 $900 $350
60 $1,200 $1,040 $160
70 $1,050 $1,180 -$130
80 $800 $1,320 -$520
90 $450 $1,460 -$1,010
Often the life of a whistleblower involves tremendous ridicule and scrutiny from others, despite doing the "right thing." Describe your views as to why whistleblowers face tremendous obstacles as a result of bringing the inappropriate actions of otehrs to light.
Answer:
Find the explanation below.
Explanation:
Whistleblowing is the act of raising an alarm over unethical or illegal acts committed by people holding political or public service positions. The whistleblower is most times motivated by the quest to end the injustice or negative impact suffered by the disadvantaged group. Whistleblowers suffer tremendous obstacles from the people they have exposed because;
1. The offender's source of illegal income has been withdrawn. Just like humans fight for survival when their source of livelihood is taken away, so would a person fight against whatever that tends to take away their illegal source of wealth.
2. Fear of being seen in a negative light by others. The person committing a crime usually puts up an act of innocence, thus presenting himself as a morally upright person. When the whistleblower tries to expose their true identity, it is only expected that they would try to shut him up.
John is considering purchasing a commercial building. His accountant is working with him to determine the property’s value to John. The initial cost of an investment property plus the cost of any additional improvements less qualified deductions represents the:
Answer:
Adjusted basis
Explanation:
Adjusted basis in accounting is used to calculate the net value of an asset. This is done by reducing depreciation deductions from the original value and adding capital expenses like cost of improvement.
This method is best used when there is need to get accurate gain and loss records, and for tax purposes.
In the given scenario John's accountant is using the adjusted basis when he calculates initial cost of an investment property plus the cost of any additional improvements less qualified deductions
30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a coupon rate of 8%. (Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.) a. What is the yield to maturity if the bond is selling for $900?
Answer:
The answer is 15.508%
Explanation:
The annual coupon rate is:
8% x 900 x 2 / $1,000 = 14.4%
The yield to maturity as follows:
Yield to maturity (YTM) = [Coupon payment + (Face Value - Present Value) / Time to Maturity] / [(Face Value + Present Value) / 2]
=> YTM = [14.4% x $1,000 + ($1,000 - $900) / 30] / [ ($1,000 + $900) / 2] = 15.508%
Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows:Year Unit Sales1 76,0002 89,0003 108,7504 101,5005 68,800Production of the implants will require $2,250,000 in net working capital to start and additional net working capital investments each year equal to 20 percent of the projected sales increase for the following year. Total fixed costs are $4,700,000 per year, variable production costs are $270 per unit, and the units are priced at $420 each. The equipment needed to begin production has an installed cost of $19,500,000. Because the implants are intended for professional singers, this equipment is considered industrial machinery and thus qualifies as seven-year MACRS property. In five years, this equipment can be sold for about 25 percent of its acquisition cost. The tax rate is 25 percent the required return is 15 percent. MACRS schedulea. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)b. What is the IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
Answer:
NPV = $3,013,537.02
IRR = 20.15%
Explanation:
initial investment $19,500,000
sales revenue per year:
year 1 = 76,000 x $420 = $31,920,000
year 2 = 89,000 x $420 = $37,380,000
year 3 = 108,750 x $420 = $45,675,000
year 4 = 101,500 x $420 = $42,630,000
year 5 = 68,800 x $420 = $28,896,000
change in net working capital:
year 0 = $2,250,000
year 1 = ($37,380,000 - $31,920,000) x 0.2 = $1,092,000
year 2 = ($45,675,000 - $37,380,000) x 0.2 = $1,659,000
year 3 = ($42,630,000 - $45,675,000) x 0.2 = -$609,000
year 4 = ($28,896,000 - $42,630,000) x 0.2 = -$2,746,800
year 5 = -$1,646,000
fixed costs = $4,700,000
contribution margin per unit = $420 - $270 = $150 per unit
resale value at the end of year 5 = $3,900,000
MACRS depreciation 7 year property:
year % depreciation expense
1 14.29% $2,786,550
2 24.49% $4,775,550
3 17.49% $3,410,550
4 12.29% $2,396,550
5 6.44%* $1,255,800*
*net of resale value
net cash flow year 0 = -$19,500,000 - $2,250,000 = -$21,750,000
net cash flow year 1 = [($11,400,000 - $4,700,000 - $2,786,550) x 0.75] + $2,786,550 - $1,092,000 = $4,629,637.50
net cash flow year 2 = [($13,350,000 - $4,700,000 - $4,775,550) x 0.75] + $4,775,550 - $1,659,000 = $6,022,387.50
net cash flow year 3 = [($16,312,500 - $4,700,000 - $3,410,550) x 0.75] + $3,410,550 + $609,000 = $10,171,012.50
net cash flow year 4 = [($15,225,000 - $4,700,000 - $2,396,550) x 0.75] + $2,396,550 + $2,746,800 = $11,239,687.50
net cash flow year 5 = [($10,320,000 - $4,700,000 - $1,255,800) x 0.75] + $1,255,800 + $1,646,000 = $6,174,950
NPV = $3,013,537.02
IRR = 20.15%
In this exercise we will use our knowledge of finance to calculate interest, so we find that:
[tex]NPV = \$3,013,537.02[/tex] [tex]IRR = 20.15\%[/tex]
So knowing that from the initial investment we will obtain the following values per year:
[tex]year 1 = 76,000 * \$420 = \$31,920,000[/tex]
[tex]year 2 = 89,000 * \$420 = \$37,380,000[/tex]
[tex]year 3 = 108,750* \$420 = \$45,675,000[/tex]
[tex]year 4 = 101,500 * \$420 = \$42,630,000[/tex]
[tex]year 5 = 68,800 * \$420 = \$28,896,000[/tex]
So knowing that from the net working capital we will obtain the following values per year:
[tex]year 0 = \$2,250,000\\year 1 = (\$37,380,000 - \$31,920,000) * 0.2 = \$1,092,000\\year 2 = (\$45,675,000 - \$37,380,000) * 0.2 = \$1,659,000\\year 3 = (\$42,630,000 - \$45,675,000) * 0.2 = -\$609,000\\year 4 = (\$28,896,000 - \$42,630,000) * 0.2 = -\$2,746,800\\year 5 = -\$1,646,000[/tex]
Then from the values previously informed we can calculate the cash flow, as:
[tex]year 0 = -\$19,500,000 - \$2,250,000 = -\$21,750,000\\year 1 = [(\$11,400,000 - \$4,700,000 - \$2,786,550) * 0.75] + \$2,786,550 - \$1,092,000 = \$4,629,637.50\\year 2 =\$6,022,387.50\\year 3 = \$10,171,012.50\\year 4 = \$11,239[/tex]
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Suppose the price level and value of the U.S. Dollar in year 1 are 1 and $1, respectively. Instructions: Round your answers to 2 decimal places. a. If the price level rises to 1.35 in year 2, what is the new value of the dollar?
Answer:
0.74
Explanation:
Data provided in the question
Price level = 1.35
According to the given situation, the computation of the new value of the dollar is shown below:-
The New value of the dollar = 1 ÷ Price level
= 1 ÷ 1.35
= 0.74074
or
= 0.74
Therefore for computing the new value of the dollar we simply applied the above formula.
If a firm favors a push strategy, using direct selling to educate potential consumers about the features of its products, what kind of products would it most likely sell
Answer:
industrial products
Explanation:
A company that does this and mostly favors a push strategy is usually selling industrial products. That is because a push strategy focuses on taking the product to the potential customer and showing them how it works as well as how it can benefit them, therefore pushing the product on them. Industrial Products are great for such a strategy since they require actual demonstration and can easily show the potential customer the actual value that the product can provide.
What is International trade also list the importance of International trade.
Answer:
International trade is buying and selling goods and services across international boundaries. International trade plays a very good role in economic activities and performance of countries around the world. International trade benefit countries in many ways: 1- increasing in production and consumption as a result of specialization, 2- greater choices for consumers due to the competition between traders to get the best choice for consumers. 3- lower prices 4- trade is great source for the flow of service and technology. International trade is the engine of growth.
"At that time, the market price of ABC is $44. If the market rises to $58 and the call is exercised (the put expires out the money), the gain or loss is:"
Answer:
600 loss
Explanation:
The computation of the gain or loss is shown below:
Since on Jan, there is a put option of 45 at $3 and the market rises to $58
So it losses by 13 points i.e
= 45 - 58
= 13
Now the total premium points collected is of 7 i.e
= 4 + 3
= 7
So, the remaining points left is
= 13 - 7
= 6
So for 6 points, the net loss is $600
When selecting the best alternative in a cost-benefit analysis, what are the issues to be considered?
Answer: Analyse cost, risk with impacts and project benefits.
Explanation:
The best alternative in a cost-benefit analysis situation are the following;
•The cost types should be analyzed
•Potential risk and their impacts should be looking into
•It is recommended to weigh all the risk even when there is a lot of project benefits.
Which of the following costs should not be included in product costs for internal management reports that are used for decision-making?
Answer: d. Cost of organization sustaining activities
Explanation:
Organization sustaining activities are those undertakings that have to be made if a company can keep operating. Examples include; property taxes, insurance, information filing with Government agencies and etc.
These activities are therefore not directly linked to the production process as they are not related to a single product and so should not be included in product costs for internal management reports which will be used for decision-making.
The following data were reported by a corporation: Authorized shares 24,000 Issued shares 19,000 Treasury shares 5,500 The number of outstanding shares is: Multiple Choice 19,000. 18,500. 29,500.
Answer:
13,500
Explanation:
Outstanding shares = issued shares - Treasury shares
19,000 - 5,500 = `13,500
Shares is a method through which firms raise capital.
Authorised shares are the maximum number of shares a company can issue to investors
Outstanding shares are the total number of shares sold to investors
Treasury shares are shares that have been issued and later repurchased by the company
Issued shares are the shares that a company issues
Kray Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 6,000 Variable costs per unit: Direct materials $ 40 Direct labor $ 19 Variable manufacturing overhead $ 8 Variable selling and administrative expense $ 2 Fixed costs: Fixed manufacturing overhead $ 144,000 Fixed selling and administrative expense $ 198,000 There were no beginning or ending inventories. The variable costing unit product cost was:
Answer:
The variable costing unit product cost was $69.
Explanation:
Variable Product Costing is a situation whereby only the variable costs of production is taking into account to estimating the cost per unit of a product. This implies that none of the fixed cost will be included in the cost of the product.
Based on the explanation above, the variable costing unit product cost to produce a single product by Kray Inc. can be calculated as follows:
Kray Inc.
Calculation of Variable Costing Unit Product Cost
Particulars Amount ($)
Direct materials 40
Direct labor 19
Variable manufacturing overhead 8
Variable selling and administrative expense 2
Variable cost per unit 69
Therefore, the variable costing unit product cost was $69.
Lilliput is a country that has closed borders and does not import or export any goods or services; hence, they do not worry about trade with other countries.
Total spending for the federal government of Lilliput for the last fiscal year was $1.06 billion. The country collected $1.05 billion in taxes during this same fiscal year. Assume government transfers were zero. Based on this information, what is Lilliput's budget balance? In the last fiscal year, Lilliput was running:______.
a. a budget surplus.
b. a balanced budget.
c. a budget deficit.
Answer: budget deficit
Explanation:
From the question, we are informed that the total spending for the federal government of Lilliput for the last fiscal year was $1.06 billion and that the country collected $1.05 billion in taxes during this same fiscal year.
Since the expenditure of $1.06 billion is more than the revenue of $1.05 billion, this show that there was a budget deficit.
You are considering purchasing one of two assets. Asset 1 has payments of 5,000 at the end of year 1, 10,000 at the end of year 3, and 15,000 at the end of year 5. The price for Asset 1 today is 26,000. Asset 2 has payments of 12,000 at the end of year 4 and 20,000 at the end of year 5. The price of the asset 3 years from now is 29,500. If the current spot curve is below, what is the one year forward rate, deferred three years? Term 1 2 3 4 5 Spot Rate 3.00% 3.40% s3 s4 4.25%
Answer:
hello attached below are the missing option related to your question
5.45% ( D )
Explanation:
Given data:
for asset 1
cost of asset = $26000
Year 1 payments = $5000, year 3 = $10000, year 5 = $15000
For asset 2
cost of asset 2 three years from now = $29500
year 4 payments = $12000, year 5 payments = $20000
Calculate the one year forward rate deferred three years
find the value of [tex](1+s3)^3[/tex] using asset 1
2600 (cost of asset now ) = 5000/ (1.03 +10000) / ((1 +s3)^3 +15000))/ 1.0425^5
from the above equation
(1 +s3)^3 = 1.11559
Now to get the one year forward rate deferred three years we determine that value using asset 2
29500 = 12000 / (1+1 year rate deferred for 3 years) + 220000/(1.0425^5/(1+s3)^3)
hence ( 1 + 1 year rate deferred for three years )
= 12000/(29500-20000)/(1.0425^5)*1.11559)
= 12000/(9500)/(1.0425^5)*1.11559
1 year rate deferred for three years = 5.447% ≈ 5.45%
What is the equivalent annual annuity of a project that requires an investment of $50,000 today and is expected to generate free cash flows of $15,000 per year for the next five years? The company’s weighted average cost of capital is 13.1% per year.
Answer:
$749.57
Explanation:
equivalent annual annuity = (NPV x rate) / [1 - (1 + rate)⁻ⁿ]
using a calculator, the NPV = $2,630rate = 13.1%n = 5equivalent annual annuity = ($2,630 x 0.131) / [1 - (1 + 0.131)⁻⁵] = $344.53 / 0.4596 = $749.57
The equivalent annual annuity is used to compare mutually exclusive projects and determine which yields the highest annual returns.
Identify the type of cash flow activity for each of the following events (operating, investing, or financing): a. Redeemed bonds be. Issued preferred stock c. Paid cash dividends d. Net income e. Sold equipment f. Purchased treasury stock go. Purchased patents h. Purchased buildings i. Sold long-term investments j. Issued bonds k. Issued common stock
Answer is given below
Explanation:
type of cash flow activity
a. Redeemed bonds ---------------Fiancing
b Issued preferred stock -----------Fiancing
c. Paid cash dividends --------------Fiancing
d. Net income --------------------------Operating
e. Sold equipment --------------------Investing
f. Purchased treasury stock -------Fiancing
g. Purchased patents ----------------Investing
h. Purchased buildings -------------Investing
i. Sold long-term investments ----Investing
j. Issued bonds ------------------------Fiancing
k. Issued common stock -----------Fiancing
According to information found on the production analysis page of the Inquirer, Chester sold 1127 units of Cute in the current year. Assuming that Cute maintains a constant market share, all the units of Cute are sold in the Nano market segment and the growth rate remains constant, how many years will it be before Cute will not be able to meet future demand unless the company adds production capacity
Answer:
1 year
Explanation:
Since it is mentioned that there is a constant market share, also the growth rate is also same so for meeting the future demand, the time period that would be considered is one year as the company should added its production capacity so that it could be in a position to meet the demand else the company is not able to meet its future demand
Hence, year 1 is considered
Waterway has a standard of 2 hours of labor per unit, at $12 per hour. In producing 3800 units, Waterway used 7350 hours of labor at a total cost of $89670. Waterway's labor quantity variance is
Answer:
Direct labor time (efficiency) variance= $3,000 favorable
Explanation:
Giving the following information:
Standard= 2 hours of labor per unit, at $12 per hour.
In producing 3800 units, Waterway used 7350 hours of labor.
To calculate the direct labor quantity variance, we need to use the following formula:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Standard quantity= 2*3,800= 7,600 hours
Direct labor time (efficiency) variance= (7,600 - 7,350)*12
Direct labor time (efficiency) variance= $3,000 favorable
If Ben invests $3500 at 4% interest per year, how much additional money must he invest at 5 1 2 % annual interest to ensure that the interest he receives each year is 4 1 2 %
Answer:
Additional $1,750 must be invested by Ben.
Explanation:
Note: The question is not complete as some dots are omitted. The question is therefore given correctly before answering it as follows:
If Ben invests $3500 at 4% interest per year, how much additional money must he invest at 5 1/2 % annual interest to ensure that the interest he receives each year is 4 1/2 %.
The question is now answered as follows:
From the question, we have:
Initial amount invested = $3,500
Interest rate on initial amount invested = 4%, or 0.04
Interest amount from initial amount invested = Initial amount invested * Interest rate on initial amount invested = $3,500 * 4% = $140
Let y represents the additional amount to invest. Therefore, we have:
Interest rate of additional amount invested = 5 1/2% = 5.5% = 0.055
Interest amount from additional amount invested = y * Interest rate of additional amount invested = y * 0.055 = y0.055
Total interest amount = Interest amount from initial amount invested + Interest amount from additional amount invested = $140 + y0.055
New amount invested = Initial amount invested + y = $3,500 + y
Interest rate of new amount invested = 4 1/2% = 4.5% = 0.045
Interest amount from new amount invested = New amount invested * ($3,500 + y) * 0.045 = $157.50 + y0.045
Since total interest amount must equal interest amount from new amount invested, we equate the two and solve as follows:
Total interest amount = Interest amount from new amount invested
$140 + y0.055 = $157.50 + y0.045
We can now solve for y as follows:
y0.055 - y0.045 = $157.50 - $140
y0.01 = $17.50
y = 17.50 / 0.01
y = $1,750
Therefore, additional $1,750 must be invested by Ben.
What is your standard deviation of demand during lead time if your average lead time = 5 days, standard deviation of demand = 4, average demand is 12, and standard deviation of lead time is 1.2 days.
Answer:
4.47
Explanation:
The computation of the standard deviation of lead time is shown below:
= √lead time × standard deviation of demand
= √ 5 days × 4
= √20
= 4.47
We simply applied the above formula to determine the standard deviation of demand during lead time
Hence, all the other items would be ignored
g Once supply side effects are taken into account, tax cuts for labor income can change i. the supply of labor ii. potential GDP. iii. the growth rate of potential GDP.
Answer:
i, ii
Explanation:
a Tax is a compulsory sum levied by the government on income, goods or services. A tax cut would increase the supply of labour. As a result, the supply of labour would increase. As a result of the increase in labour, there would be an increase in potential GDP
