Answer:
Outsourcing Company Activities
The shift in the cost structure of the company entails:
the elimination of most fixed costs and making variable costs to become more prominent.
Explanation:
A company's cost structure describes the relative proportions of fixed and variable costs which the company incurs in its business activities. Outsourcing is a cost-driven strategy that involves the use of outside vendors to perform services and create goods that were traditionally produced in-house, thereby eliminating some employees and facilities, and thus, reducing cost.
Consider the following information: Portfolio Expected Return Beta Risk-free 5 % 0 Market 10.6 1.0 A 8.6 0.9 a. Calculate the expected return of portfolio A with a beta of 0.9. (Round your answer to 2 decimal places.) b. What is the alpha of portfolio A. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) c. If the simple CAPM is valid, is the above situation possible?
Answer:
a. Expected return of portfolio A = 10.04%
b. Alpha of portfolio A = 1.44%
c. No, the above situation is NOT possible. This is because return as per CAPM and expected return have different values. Therefore, we say that CAPM is NOT valid.
Explanation:
Given:
Portfolio Expected Return Beta
Risk-free 5 % 0
Market 10.6 1.0
A 8.6 0.9
a. Calculate the expected return of portfolio A with a beta of 0.9. (Round your answer to 2 decimal places.)
Expected return of portfolio A = Return as per CAPM = Risk free rate + (Beta * (Market return - Risk free rate)) = 5% + (0.9 * (10.6% - 5%)) = 10.04%
b. What is the alpha of portfolio A. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)
Alpha of portfolio A = Return as per CAPM - Expected return = 10.04% - 86% = 1.44%
c. If the simple CAPM is valid, is the above situation possible?
No, the above situation is NOT possible. This is because return as per CAPM and expected return have different values. Therefore, we say that CAPM is NOT valid.
Dixie Bank offers a certificate of deposit with an option to select your own investment period. Jonathan has $7 comma 500 for his CD investment. If the bank is offering a 5 % interest rate, compounded annually, how much will the CD be worth at maturity if Jonathan picks a
Answer:
a. Two year investment period:
Future value = Amount * (1 + rate)^ number of years
= 7,500 * ( 1 + 5%)²
= $8,268.75
b. Five year investment period:
= 7,500 * (1 + 5%)⁵
= $9,572.11
c. Eight-year investment period:
= 7,500 * ( 1 + 5%)⁸
= $11,080.92
A 30-year maturity bond with face value of $1,000 makes annual 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.)
Answer and Explanation:
a. The yield to maturity is
Given that
FV = $1000,
PV = -$900
PMT = 80 (8% of $1,000)
NPER = 30
The formula is
=RATE(NPER,PMT,-PV,FV,TYPE)
after applying the formula, the rate is 8.97%
b. In the case when the bond is sold at par so this means that yield to maturity is equivalent to the coupon rate i.e. 8%
c. The yield to maturity is
Given that
FV = $1000,
PV = -$1100
PMT = 80 (8% of $1,000)
NPER = 30
The formula is
=RATE(NPER,PMT,-PV,FV,TYPE)
after applying the formula, the rate is 7.18%
On January 1, DogMart Company purchased a two-year liability insurance policy for $32400 cash. The purchase was recorded to Prepaid Insurance. How much would be the January 31 amount recorded to expense (use two decimals)?
Answer: $1,350
Explanation:
The insurance is for 2 years but has to be apportioned monthly on account of the Accrual basis in Accounting where expenses will only be recognized when they are incurred.
The expense to be recorded for the first month will therefore be:
= 32,400 / 24 months
= $1,350
Explain ethics in dealing with employers and discuss the various methods used by salespeople
that can be regarded as being unethical towards the employer specifically. Give a practical
example of each in relation to a sales situation.
that they always want to be correct and they always like their stores to be clean and neat, and they can sometimes follow you too
Retained earnings, December 31, 2012 $ 306,800 Cost of equipment purchased during 2013 29,000 Net loss for the year ended December 31, 2013 4,000 Dividends declared and paid in 2013 14,300 Decrease in cash balance from January 1, 2013, to December 31, 2013 11,100 Decrease in long-term debt in 2013 14,000 Required: From the above data, calculate the retained earnings balance as of December 31, 2013. (Negative amounts should be indicated by a minus sign.)
Answer:
$288,500
Explanation:
Particulars Amount
Retained Earnings Dec 31, 2012 $306,800
Less: Net Loss for the Year $4,000
Less: Dividend declared and paid in 2013 $14,300
Retained Earnings Dec 31, 2013 $288,500
Pretzelmania, Inc., issues 5%, 10-year bonds with a face amount of $68,000 for $68,000 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 5%. Interest is paid annually on December 31.
Required:
Record the bond issue and first interest payment on June 30, 2021.
Answer:
Here the answer is given as follows,
Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 185 Units in beginning inventory 100 Units produced 1,970 Units sold 1,380 Units in ending inventory 690 Variable costs per unit: Direct materials $ 75 Direct labor $ 32 Variable manufacturing overhead $ 12 Variable selling and administrative expense $ 11 Fixed costs: Fixed manufacturing overhead $ 19,700 Fixed selling and administrative expense $ 30,360 What is the total period cost for the month under variable costing?
Answer:
Total period cost for the month $65,240
Explanation:
Product cost under variable costing = Direct materials + Direct labor + Variable overheads
Period cost under variable costing = Fixed manufacturing overheads + All non manufacturing overheads (Variable and fixed)
Calculation of the total period cost using variable costing
Variable selling and administrative expense ($11 × 1,380 units)
$15,180
Fixed manufacturing overhead
$19,700
Fixed selling and administrative expense
$30,360
Total period cost for the month
$65,240
If the unemployment rate is 5.8% and the number of unemployed persons is 15 million, the labor force is approximately:___________A. 258 million.B. 25.8 million.C. 87 million.D. 870 million.E. 2.6 million.
Answer: 258 million
Explanation:
The labor force refers to the number of people who are employed and the unemployed who are also looking for work.
Let the labor force be represented by x. Based on the question given, we can form an equation which will be:
5.8% of x = 15 million
0.058x = 15 million
x = 15million / 0.058
x = 258 million
Therefore, the labor force is approximately 258 million.
Darin Company uses a perpetual inventory system. On October 1, Darin Company sold inventory in the amount of $6,500 to Dee Company, terms 2/10, n/30. The items cost Darin $4,200. On October 4, Dee returns some of the inventory. This inventory had a selling price of $500 and a cost of $200. On October 8, Dee Company paid Darin Company the amount due on that date. Use the information above to answer the following question. What journal entry will be prepared by Darin Company on October 8 to record the receipt of payment from Dee
Answer:
Debit : Cash $5,870
Credit : Accounts Receivable $5,870
Explanation:
The journal entry to be prepared by Darin Company on October 8 to record the receipt of payment from Dee consist of a Debit in Cash and Credit Accounts Receivable at the amount outstanding after deducting cash discount and returns.
Amount Outstanding
Total Accounts Receivable $6,500
Less Cash discount at 2 % ($130)
Less Returns ($500)
Outstanding amount $5,870
A structure that organizes worldwide operations primarily based on function and secondarily on product is called: a global area division. a global functional division. a multinational matrix structure. a global product division.
Answer:
a global functional division.
Explanation:
In a global functional structure, the MNC activities are to be organized among the particular functions that are related to the production, finance, marketing etc. Here the developments are establishment that would have the responsibility worldwide for the particular function
So as per the given situation, the above should be the answer
The following information pertains to Peak Heights Company:
Income Statement for Current Year
Sales $85,900
Expenses Cost of goods sold $51,675
Depreciation expense 6,700
Salaries expense 11,900 70,275
Net income $15,625
Partial Balance Sheet Current year Prior year
Accounts receivable $9,800 $14,200
Inventory 13,100 9,100
Salaries payable 1,620 870
Required:
Present the operating activities section of the statement of cash flows for Peak Heights Company using the indirect method.
Answer:
Peak Heights Company
PEAK HEIGHTS COMPANY
Statement of Cash Flows
Operating Activities Section
Net income $15,625
Non-cash flow: Depreciation 6,700
Changes in working capital:
Accounts receivable -$4,400
Inventory 4,000
Salaries payable 750
Net cash from operating activities $22,675
Explanation:
A) Data and Calculations:
Peak Heights Company:
Income Statement for Current Year
Sales $85,900
Expenses Cost of goods sold $51,675
Depreciation expense 6,700
Salaries expense 11,900 70,275
Net income $15,625
Partial Balance Sheet Current year Prior year Changes
Accounts receivable $9,800 $14,200 -$4,400
Inventory 13,100 9,100 4,000
Salaries payable 1,620 870 750
A company receives a 10%, 90-day note for $2,700. The total interest due on the maturity date is: (Use 360 days a year.)
Answer:
Interest amount = $67.5
Explanation:
Use the below formula to find the interest amount:
Interest amount = The value of note x Interest rate x (90 / 360)
Given value of note = $2700
Interest rate = 10%
Time = 90/360
Now plug the value in the above formula and solve for the interest due:
Interest amount = The value of note x Interest rate x (90 / 360)
Interest amount = 2700 x 10% x (90 / 360)
Interest amount = $67.5
Assume that beer is an inferior good. If the price of beer falls, then the substitution effect results in the person buying ________ of the good and the income effect results in the person buying ________ of the good.
Answer:
more
less
Explanation:
Inferior goods are goods whose demand falls when income rises and increases when income falls.
When the price of beer changes, there are two effects that determine the quantity demanded. They are :
1. the substitution effect
2. the income effect
The substitution effect looks at the change in price of a good relative to other goods. When the price of beer decreases, it becomes cheaper relative to other goods. Thus, the demand for it increases.
The income effect looks at how a change in price affects real disposable income. When price of beer reduces, disposable income increases. Because beer is an inferior good, it would lead to a decrease in the demand for beer
C Corporation is investigating automating a process by purchasing a machine for $803,700 that would have a 9 year useful life and no salvage value. By automating the process, the company would save $138,500 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $22,300. The annual depreciation on the new machine would be $89,300. The simple rate of return on the investment is closest to (Ignore income taxes.):
Answer:
6.30%
Explanation:
Calculation to determine what The simple rate of return on the investment is closest to
Using this formula
Simple rate of return= Annual net profit / net investment
Let plug in the formula
Simple rate of return= (138,500-89,300)/(803,700-22,300)
Simple rate of return= 49,200/781,400
Simple rate of return= 6.30%
Therefore The simple rate of return on the investment is closest to 6.30%
The Dow Theory describes stock prices as moving in trends analogous to the movement of water. Which of the following statements is nottrue?
A. Major trends resemble tides.
B. Intermediate trends resemble waves.
C. Short-run movements are like ripples.
D. Waves are the most important.
E. None of the above (that is, all are true statements)
Answer:
D.Waves are the most important I think sorry if I'm wrong
Explanation:
Hope this helped! :)
Which of the strategies to enter global markets do you think would be best for a small, 100 person company manufacturing special dog collars
Answer:
Exporting by means of:
Local representative Online salesExplanation:
It would be best that the company engages in exports for the time being because it dos not require much funds to be used and so expenses are less.
The company could find a local representative in the countries that it would like to sell to and use that representative as a middleman to sell their goods there.
The company could also cut out the middle man and directly sell to consumers on the internet through websites dedicated to the sale of their kind of goods.
Agan Interiors provides home and office decorating assistance to customers. In normal operation 2.5 customers arrive per hour. One design consultant answers problems. The consultant averages 10 minutes per customer. Arrivals follow a Poisson distribution and the service times are exponentially distributed.
Required:
a. Compute the operating characteristics of the customer waiting line, assuming Poisson arrivals and exponential service times.
b. Service goals dictate that an arriving customer should not wait for service more than an average of 7 minutes. Is this goal being met? If not, what action do you recommend?
c. If the consultant can reduce the average time spent per customer to 9 minutes, what is the mean service rate?
Explanation:
we find the mean service rate at 10 minutes
= 60/10 = 6 min per hour
λ = 2.5
a.
1. we find the average number that are waiting in line
Lq = 2.5²/6(6-2.5)
= 6.25/21
= 0.2976
2. we find the average customers that are in this system
= 2.5²/6(6-2.5) + 2.5/6
= 0.2976 + 0.4167
L = 0.714266
approximately 0.7143
3. we have to determine the average time that a customers stays waitong
= Lq/λ
= 0.2976/2.5
= 0.11904 hours.
we convert this to minutes
= 0.11904 x 60
Wq = 7.1424 minutes
4. we find the average time that a customer is going to stay in the system
= 7.1424 + 60/6
w = 17.14 minutes
b. this goal is not being met here. This is because the service wait time is 7.14 minutes which is greater than 7 minutes. In order for them to meet this goal, they either have to hire other consultants or they have to raise their mean service rate.
c. mean would be =
60/9 = 6.67 per hour
Wq = 2.5/6.67(6.67-2.5)
= 2.5/27.814
= 0.0899 hour
= 0.0899*60
= 5.4 minutes
What happens to the price of a three-year annual coupon paying bond with an 8% coupon when interest rates change from 8% to 8.96%
Answer:
It would reduce to -24.3185
Explanation:
I solved this on paper and have added the solution as an attachment
At 8% rate of interest the price of this bond is 1000
At 8.96% rate of interest the calculated price of the coupon bond is 975.681
975.681-1000 = -24.3185
When the interest rate falls from 8% to 8.96%, the price of the bond reduces by -24.3185
The manager of an air conditioning manufacturing plant wants to train their service installers on the steps to follow to install the new units. Which visual aid listed below is the best option?
Answer: can you please provide me with some options
Explanation:
No options are listed
Given that annual deposit rates for Dollars and Euros are 8% and 6% respectively for the next 5 years. If the current spot rate of the Euro is $1.1845, obtain the implied rate for the Euro five years from now if International Fisher Equation (IFE) holds exactly.
a. $1.5415
b. $1.2742
c. $1.4284
d. $1.3750
e. None of the above.
Answer:
is the a
Explanation:
During the current calendar year, Bowman Corporation purchased $660,000 of inventory. The beginning inventory balance was $84,000, and the inventory balance at year-end was $120,000. The inventory turnover for the current year was:
Answer:
6.12 times
Explanation:
Cost of Goods Sold = $84,000 + $660,000 - $120,000
Cost of Goods Sold = $624,000
Average inventory = ($84,000 + $120,000) / 2
Average inventory = $102,000
Inventory Turnover = Cost of Goods Sold / Average inventory
Inventory Turnover = $624,000 / $102,000
Inventory Turnover = 6.117647059
Inventory Turnover = 6.12 times
________duties are tailored at the request of the Program Manager (PM) and are written in the Memorandum of Agreement, signed by both the PM and the Contract Administration Office (CAO) Commander (Please note the CAO Commander was previously referred to as the Contract Management Office (CMO) Commander).
a. Program Support Team
b. Administrative Contracting Officer
c. Program Integrator
d. Procuring Contracting Officer
Answer:
b. Administrative Contracting Officer
Explanation:
The officer who is given the responsibility of administering the U.S. government contracts in the Contract Administration Office is called the Administrative Contracting Officer (ACO). For the U.S. military, this office is led by the Contract Administration Office (CAO) Commander. The ACO in the CAO is just one of the officers under the CAO Commander, and she can negotiate contracts on behalf of the U.S. government.
analyse the interrelationship anong the stages of group development process
Answer:
Bruce Tuckman presented a model of five stages Forming, Storming, Norming, and Performing in order to develop as a group.
Orientation (Forming Stage) ...
Power Struggle (Storming Stage) ...
Cooperation and Integration (Norming Stage) ...
Synergy (Performing Stage) ...
Closure (Adjourning
Suppose your client wishes to purchase an annuity that pays $50,000 each year for 5 years, with the first payment 4 years from now. At an interest rate of 10%, how much would the client need to invest now
Answer:
The amount the client would need to invest now is $182,143.58.
Explanation:
This can be calculated using the following two steps:
Step 1: Calculate the present value (PV) of the amount invested 4 years from now
This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:
PV4 = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
PV4 = Present value of the amount invested 4 years from now = ?
P = Annual payment = $50,000
r = Interest rate = 10%, or 0.10
n = number of years the annual payment will be received = 5
Substitute the values into equation (1), we have:
PV4 = $50,000 * ((1 - (1 / (1 + 0.10))^5) / 0.10)
PV4 = $189,539.34
Step 2: Calculate the amount the client would need to invest now
This can be calculated using the present value formula as follows:
PV = PV4 / (1 + r)^n …………………………. (2)
Where:
PV = Present value or the amount the client would need to invest now = ?
PV4 = Present value of the amount invested 4 years from now = $189,539.34
r = Interest rate = 10%, or 0.10
n = number of years of PV4 from now = 4
Substituting the relevant values into equation one, we have:
PV = $189,539.34 / (1 + 0.01)^4
PV = $182,143.58
Therefore, the amount the client would need to invest now is $182,143.58.
Rivalry-related competitive pressures are being intensified by the efforts of rivals to expand their product lines and offer wider selection to those people who wear performance-based yoga and fitness apparel.
a. True
b. False
Answer:
True
Explanation:
The pressure that are competitive are considered to be intensified via the competitors efforts in order to diversify the product lines and the other things at the wider area that wore the performance based yoga and the apparel related to the fitness
So as per the given statement, the statement is true
hence, the option a is correct
On January 1, 2019, Brooks Inc. borrows $90,000 from a bank and signs a 5% installment note requiring four annual payments of $25,381 at the end of each year. The first installment payment is made on December 31. Complete the necessary journal entry on 12/31 by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer:
Date Account Title Debit Credit
12/31/2019 Notes Payable $4,500
Interest expense $20,881
Cash $25,381
Working
Interest expense = 5% * 90,000
= $4,500
Notes payable = 25,381 - 4,500
= $20,881
This is the principal repayment amount.
Frans paid R9600 as interest on a loan he took 5 years ago at 16% rate. What's was the amount he took as loan?
[tex]\bold{{Answer}}[/tex]
Any choices?
The amount he took as loan was Rs.7680
What is loan?The term loan refers to a type of credit vehicle in which a sum of money is lent to another party in exchange for future repayment of the value or principal amount. In many cases, the lender also adds interest and/or finance charges to the principal value which the borrower must repay in addition to the principal balance. Loans may be for a specific, one-time amount, or they may be available as an open-ended line of credit up to a specified limit. Loans come in many different forms including secured, unsecured, commercial, and personal loans.
A loan is a form of debt incurred by an individual or other entity. The lender—usually a corporation, financial institution, or government—advances a sum of money to the borrower. In return, the borrower agrees to a certain set of terms including any finance charges, interest, repayment date, and other conditions. In some cases, the lender may require collateral to secure the loan and ensure repayment.
What are methods of calculating interest on loan?"The interest rate on loans can be set at simple or compound interest. Simple interest is interest on the principal loan. Banks almost never charge borrowers simple interest. For example, let's say an individual takes out a $300,000 mortgage from the bank, and the loan agreement stipulates that the interest rate on the loan is 15% annually. As a result, the borrower will have to pay the bank a total of $345,000 or $300,000 x 1.15. Compound interest is interest on interest and means more money in interest has to be paid by the borrower. The interest is not only applied to the principal but also the accumulated interest of previous periods. The bank assumes that at the end of the first year, the borrower owes it the principal plus interest for that year. At the end of the second year, the borrower owes it the principal and the interest for the first year plus the interest on interest for the first year."
To learn more about loan here
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The income from operations and the amount of invested assets in each division of Beck Industries are as follows: Income from Operations Invested Assets Retail Division $5,400,000 $30,000,000 Commercial Division 6,250,000 25,000,000 Internet Division 1,800,000 12,000,000 a. Compute the return on investment for each division.
Answer:
Retail Division = 18 %
Commercial Division = 25 %
Internet Division = 15 %
Explanation:
Return on Investment = Net Income / Assets employed x 100
therefore,
Retail Division = $5,400,000 / $30,000,000 x 100
= 18 %
Commercial Division = $6,250,000 / $25,000,000 x 100
= 25 %
Internet Division = $1,800,000 / $12,000,000 x 100
= 15 %
Bantam company calculated its net income to be $38,775 based on the unadjusted trial balance. The following adjusting entries were then made for:
Salaries and wages owed but not yet paid of $395.
Interest earned but not received from investments of $375.
Prepaid insurance premiums amounting to $275 have expired.
Unearned revenue in the amount of $805 has now been earned.
Required:
Determine the amount of net income (loss) that will be reported after the adjustments are recorded.
Answer:
the amount of net income or loss is $39,285
Explanation:
The computation of the amount of net income or loss is shown below:
= Net income + interest earned + unearned revenue - salaries & wages - prepaid insurance
= $38,775 + $375 + $805 - $395 - $275
= $39,285
hence, the amount of net income or loss is $39,285
The same should be considered and relevant
