Answer:
1.The statement of cash flows purpose is to enable us know how Cash are been spent as well as how cash flows which is why statement of Cash flows is an important part of financial accounting.
2.$266,400
3.Total Assets $775,400
Total Liabilities & Stockholder's Equity $775,400
4.Closing Balance of Cash $305,000
Explanation:
1. The statement of cash flows purpose is to enable us know how Cash are been spent as well as how cash flows which is why statement of Cash flows is an important part of financial accounting.
2. Preparation of the income statement
ARC INCOME STATEMENT
Revenue
Sales Revenue 660,000 (2,400×275)
Less :Expenses
Cost of Goods Sold 250,000
Salaries Expense 96,000
Depreciation 10,600
(53,000/5)
Rent Expense 20,000
Income tax expenses 17,000
Total Expens ( 393,600)
Net Income 266,400
(660,000-393,600)
3.Preparations of ARC balance sheet at December 31, 2018.
ARC BALANCE SHEET
Assets
Current Assets
Cash 305,000
Accounts Receivable 99,000 (660,000×15%)
Merchandise Inventory 329,000
Property, Plant and Equipment
Store Fixtures 53,000
Less : Accumulated Depreciation (10,600)
TOTAL ASSETS 775,400
Liabilities
Current Liabilities
Accounts Payable 100,000
(239,000-139,000)
Salaries Payable 3,000
Stockholder's Equity
Common Stock 450,000
Retained Earnings 222,400
(266,400-44,000)
Total Stockholder's Equity 672,400
TOTAL LIABILITIES & STOCKHOLDER'S EQUITY 775,400
4.Preparation of statement of cash flows
ARC CASH FLOW STATEMENT for the year ended December 31, 2018.
INDIRECT METHOD
CASH FLOW FROM OPERATING ACTIVITIES:
Cash Collected from Customers 561,000
(660,000×85%)
Cash paid for inventory (479,000) -(340,000+139,000)
Cash paid for Salaries (93,000) -(96,000-3000)
Cash paid for Rent (20,000)
Cash paid for Income tax (17,000)
CASH FLOW FROM OPERATING ACTIVITIES (48,000)
CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of Store Fixtures (53,000)
NET CASH USED IN INVESTING ACTIVITIES (53,000)
CASH FLOW FROM FINANCING ACTIVITIES
Issue of Common Stock 450,000
Dividend Paid (44,000)
NET CASH USED IN FINANCING ACTIVITIES 406,000
Increase in Cash 305,000
(406,000-53,000-48,000)
Opening Balance of Cash 0
CLOSING BALANCE OF CASH 305,000
Current Assets
Cash Calculation 305,000
(450,000-53,000-340,000-20,000+660,000×85%-139,000-44,000-93,000-17,000)=305,000
Suppose labor demand and supply are represented by the equations Demand: LD = 100 − 2W, Supply: LS = 2W. a. Find the equilibrium wage and employment level. b. Explain why $30 cannot be the market clearing wage. c. Suppose 5 workers are hired at a wage of $30. Show an example where an exchange can occur that is beneficial to multiple people. How much economic rent is generated by this transaction? d. If workers earn economic rent, does that mean they are being overpaid? e. Suppose all hiring in this market must be done through a union and the union has limited the supply of labor to 40 units. What wage will emerge in this market? How much economic rent have the employed members of the union gained? How much economic rent has been lost due to the limitation on union labor?
Answer:
Labor Demand and Supply
a) Equilibrium Wages = $25 and Equilibrium employment level = 2
b) $30 cannot be the market clearing wage. At $30 labor supply will outstrip labor demand. In that situation, there is no equilibrium of labor supply and demand.
c) If 5 workers are hired at a wage of $30, the wage bill will be equal to $150 ($30 * 5) and the 5 workers will be receiving an economic rent of $5 each ($30 - 25). The total economic rent is $25 ($5 * 5).
d) If workers earn economic rent, it does not mean that they are being overpaid. It simply means that they are being paid above the equilibrium wage.
e) The total wage will be $1,200($30 * 40). The total economic rent gained by the employed union members is $200 ($5 * 40). The economic rent lost by limitation on union labor cannot be quantified with the given information.
Explanation:
a) Data and Calculations:
Demand: LD = 100 − 2W
Supply: LS = 2W
Equilibrium wage and employment level exist where Demand = Supply
i.e. LD = LS = 100 - 2W = 2W
Therefore 2W = 100 - 2W
= 4W = 100
= W = 100/4
= W = 25
Equilibrium Wages = $25
Equilibrium employment level = 2
b) Economic rent is the additional or extra income which a resource earns or generates over the normal earnings as a result of being put to use in its present form. This means that the extra income could be lost without jeopardizing the deployment of the resource to some productive use.
What role has venture capitalism played in the market place?
Answer:
The summary of the matter in question is mentioned throughout the subsection below.
Explanation:
Venture Capital seems to be an age-old term although in previous centuries this same industry has changed.A venture capitalist plays a very important role throughout organizing early-stage investment, attracting top management abilities candidates, promising technological start-ups, and innovative product manufacturer's professional assistance as well as other support facilities.
An account is opened for three individuals as "Tenants in Common". If one of the individuals dies, the:
Answer:
the two remaining survivors will own the late tenant's share of the account.
Explanation:
When there is property (assets, real estate, bank or investment accounts, etc.) owned by tenants in common and one of them dies, the rest of the surviving tenants will continue to own the property. In this case, if one of the 2 surviving co tenants dies, then the remaining surviving tenant would own the whole account.
A constraint with a positive slack value will have a positive dual price. will have a negative dual price. will have a dual price of zero. has no restrictions for its dual price.
Answer:
will have a dual price of zero.
Explanation:
Slack variables are used in linear programming equation where the equation is not balanced and to balance the equation a variable equal to zero is introduced called a slack variable.
The constraint in the slack variable will be zero, where the positive value.
It is never equal to zero, but the value is so low and so near to zero that it is considered to be equal to zero.
________ are typically used by companies for specific applications such as data processing and financial transactions.
Answer:
Mainframe computers
Explanation:
Mainframe computers are typically large in size with large storage space, reliability, and high processing power.
They are usually used by large corporations for data processing applications such as financial transactions, industry statistics, Customer statistics, and enterprise resource planning.
Mainframe computers are different from supercomputers in the aspect of processing power. Supercomputers has have leading edge processing power.
While supercomputers are used to solve scientific and engineering problems, mainframes are mostly used for financial transactions.
What is the process of applying safeguards to avoid a negative impact? risk mitigation risk transfer risk analysis risk avoidance
Answer: risk avoidance
Explanation:
Risk avoidance is simply defined as the process by which safeguards are applied in order to avoid a negative impact. It should be noted that a risk avoidance strategy helps to eliminate all risk and organizations apply safeguards to both potential threats and vulnerabilities.
Risk avoidance helps to remove hazards, and the activities that'll have a negative impact on the business.
Which of the following statement about working capital management are TRUE?
A) Lengthening payment terms with suppliers reduces financing needs
B) Shorter payment terms for customers increase net working capital
C) Decrease in inventories increases working capital
D) Identical decrease in customer and supplier payment terms does not alter net working capital Back Next
Answer:
C and D
Explanation:
The answers from the options are:
1. Decrease in inventories increases working capital
2. Identical decrease in customer and supplier payment terms does not alter net working capital.
Working capital management is a type of strategy used in business to make sure that a company runs efficiently by using it's current assets and liabilities effectively as well as monitoring them
Bob reviews an income statement that includes percentages of how each item relates to sales. What kind of financial analysis is this?
Answer:
Common Size Analysis
Explanation:
In a common size, Statement of Comprehensive Income, sales revenue is expressed as 100% and every other item is expressed as a percentage of sales revenue.
Evo's owner states that ecommerce is too transaction-oriented and fails to establish emotional connections between consumers and brands. This critique suggests that the Web is ineffective at delivering:
Answer: Services to consumers.
Explanation:
The physical store is more beneficial to meet the needs of the customers to obtain the sports gear. The store is more effective in maintaining the relationship quality between consumers and Evo. Utilitarian values are maintained by shopping at the physical store instead of shopping online. Thus, e-commerce or web-based business proved to be ineffective at delivering services to consumers.
If the marginal propensity to consume is 0.30 , what is the multiplier, assuming there are no taxes or imports
Answer:
Multiplier or k = 1.428571429 rounded off to 1.43
Explanation:
A change in consumer income leading to an increased consumer spending based on the Marginal propensity to consume or MPC can have a much larger effect in the economy due to the multiplier. A multiplier is the is the amount of new income that is generated form an addition of extra income.
The marginal propensity to consume or MPC is the percentage of the additional income that will be used for consumption spending. The formula to calculate the multiplier, also denoted as k, is:
k = 1 / (1 - MPC)
k = 1 / (1 - 0.3)
k = 1.428571429 rounded off to 1.43
Suppose in year 1 the CPI is 90, in year 2 the CPI is 100, and in year 3 the CPI is 110. Then, inflation is
Answer: E) Both answers B and D are correct.
Explanation:
Inflation using the Consumer Price Index is calculated by;
= (CPI in current year - CPI in previous year) / CPI in previous year
Year 2 Inflation = (100 - 90) / 90
= 11%
Year 3 Inflation = (110 - 100) / 100
= 10%
On December 12, 2021, Pace Electronics received $25,200 from a customer toward a cash sale of $252,000 of diodes to be completed on January 16, 2022. What journal entries should Pace record on December 12 and January 16
Answer:
(a) Debit Cash for $25,200; Credit Deferred sales revenue for $25,000.
(b) Debit Cash for $2,26,800; Debit Deferred sales revenue for $25,200; and Credit Sales revenue for $252,000.
Explanation:
(a) What journal entries should Pace record on December 12?
The receipt of part-payment of $25,200 from a customer on December 12, 2021 creates a deferred sales revenue which will appear as under current liabilities. The journal entries that Pace should record on December 12, 2021 will therefore look as follows:
Date Account Title Dr ($) Cr ($)
12 Dec '21 Cash 25,200
Deferred sales revenue 25,200
(To record a deferred sales revenue from diodes.)
(b) What journal entries should Pace record on January 16?
On this date, the customer will pay the remaining amount. The amount in the Deferred sales revenue account will now be transferred to the Sales Revenue account and there will be no liability again. The journal entries that Pace should record on January 16, 2022 will therefore look as follows:
Date Account Title Dr ($) Cr ($)
16 Jan '22 Cash (w.1) 2,26,800
Deferred sales revenue 25,200
Sales revenue 252,000
(To record sales revenue from diodes.)
Workings:
w.1: Cash = Sales revenue - Deferred sales revenue = $252,000 - $25,200 = $2,26,800
With reference to the job characteristics model, which of the following defines task identity?a. the degree to which a job requires completion of a whole and identifiable piece of work.b. the degree to which work activities generate direct and clear information about performance.c. the degree to which a job provides the worker freedom in scheduling and procedured. the degree to which a job has an impact on the lives or work of other peopleE) the degree to which a job requires a variety of different activities
Answer:
a. The degree to which a job requires completion of a whole and identifiable piece of work
Explanation:
According to job characteristics model, what motivates an employee to be productive is the task he or she is asked to perform. Ideally, when a task is somewhat challenging, such would motivate the worker to exert his or her energy hence perform well on the task whereas a non challenging task wears down an employee's performance.
The model states that there are five core job characteristics that would show how a job is likely to affect the behaviors and attitude of employees. They are task identity, task variety, feedback, autonomy and task significance.
Therefore, according to the model, task identity is the degree to which a job requires completion of a whole and identifiable piece of work.
Economics is defined as:______.a. the study of how individuals, businesses, and societies make decisions to maximize their well-being given limited resources.b. the study of the fundamental nature of problems, such as those connected to reality and existence.c. the study of human culture and its evolution over time around different regions across the world.d. study of how individuals and society use unlimited resources to fulfill their needs and wants.
Answer:
d. study of how individuals and society use unlimited resources to fulfill their needs and wants.
Explanation:
Lionel Robbins defines economics as the science which studies human behavior as a relationship between given ends and scarce means which have alternative uses.
Adam Smith defined economics as “an inquiry into the nature and causes of the wealth of nations.”
In fund A, $100,000 accumulates at an annual nominal rate of interest j compounded semiannually to $130,666.52 in 4 years. In fund B, $100,000 accumulates at an annual nominal rate of discount k compounded quarterly to $154,531.82 in 5 years. In fund C, $100,000 accumulates at an annual effective rate of interest j in year one and an annual effective rate of interest k in year 2. What is the balance in fund C at the end of year 2?
Answer:
at the end of year 2, the balance of fund C = $116,639.23
Explanation:
to determine the nominal semiannual interest rate j we can use the future value formula:
$130,666.52 = $100,000 x (1 + j)⁸
(1 + j)⁸ = $130,666.52 / $100,000 = 1.3066652
⁸√(1 + j)⁸ = ⁸√1.3066652
1 + j = 1.034000004
j = 0.034000004
effective annual interest j = (1 + 0.034000004)² - 1 = 0.069156 = 6.9156%
to determine the nominal quarterly interest rate k we can use the future value formula:
$154,531.82 = $100,000 x (1 + k)²⁰
(1 + k)²⁰ = $154,531.82 / $100,000 = 1.5453182
²⁰√(1 + k)²⁰ = ²⁰√1.5453182
1 + k = 1.022
k = 0.022
effective annual interest k = (1 + 0.022)⁴ - 1 = 0.090946828 = 9.094682805%
at the end of year 1, the balance of fund C = $100,000 x (1 + 6.9156%) = $106,915.60
at the end of year 2, the balance of fund C = $106,915.60 x (1 + 9.094682805%) = $116,639.23
Ash is the preferred wood to be used in the production of baseball bats. If a company was to buy the rights to harvesting the ash trees out of all the forests in North America, which of the following barriers of entry has this company created?
A. problems raising capital
B. patents and copyright law
C. control of resources
D. economies of scale
E. licensing
Answer:
C. control of resources
Beaver Company used a predetermined overhead rate last year of $2 per direct labor-hour, based on an estimate of 25,000 direct labor-hours to be worked during the year. Actual costs and activity during the year were:
The question is incomplete. Here is the complete question
Beaver Company used a predetermined overhead rate last year of $2 per direct labour hour based on an estimate of 25,000 direct labour hours to be worked during the year. Actual costs and activity during the year were:
Actual manufacturing overhead cost incurred = $47,000
Actual direct labour hours worked = 24,000
What was the under- or overapplied overhead last year?
Answer:
1,000 overapplied
Explanation:
Beaver company made use of a predetermined overhead rate last year
$2 per direct labour hour on an estimate of 25,000 direct labour hours
The actual costs during the year is $47,000
The actual direct labour hours was 24,000
Therefore, the over or underapplied for last year can be calculated as follows
= (24,000×2)-47,000
= 48,000-47,000
= 1,000 overapplied
Hence, the overhead last year was 1,000 overapplied
What arguments could you provide to convince top management to support the establishment of a safety program?
Explanation:
A safety training program could be insightful and maybe even provide lifesaving information to employees of a company. Tell management about the following advantages;
1. The Safety program increases the company's reputation: For example, the company may attract the best professionals in the industry because they are impressed by the company's safety program.
2. It benefits the company financially: For example, it will save the company money when there less injured employees since there will be no need to spend on a replacement.
For a two-stock portfolio, what would be the preferred correlation coefficient between the two stocks?
Answer:
-1
Explanation:
The correlation coefficient can range from -1 to 1. It measures how one stock (or security) reacts to any change in the price of performance of another stock (or security). When the correlation is -1, it means that there is no relationship between how the stocks will perform, i.e. they are completely uncorrelated.
A direct participation program shows the following operation results: Revenues: $3 million Operating expense: $1 million Interest expense: $200,000 Management fees: $200,000 Depreciation: $3 million The cash flow from program operation is
Answer:
The cash flow from program operation is $1,600,000.
Explanation:
Prepare the Cash Flow from Operating Activities Section to determine the cash flow from program operation.
Cash Flow from Operating Activities
Revenue $3,000,000
Less Expenses :
Operating Expenses $1,000,000
Interest expense $200,000
Management fees $200,000
Depreciation $3,000,000 ($4,400,000)
Operating Profit / (Loss) ($1,400,000)
Add Back Depreciation $3,000,000
Operating Cash flow $1,600,000
Replacing obsolete components piece by piece rather than changing the entire product is made possible because of ______.
Answer:
modular design
Explanation:
Modular design is when the faulty part of a system or process is being repaired in a piecemeal instead of replacing the whole system so that they can be more efficient. These means that the faulty parts are broken into smaller units and then rearranged to a larger unit hence increase efficiency. The idea here is not to replace the whole system but to fix or repair or change the faulty area.
Where modular design is adopted by a firm, there would be improvement and consistency in terms of whatever systems or products a firm might be engaging in.
Suppose one U.S. dollar can purchase a half pound of strawberries in the United States. After converting dollar to pesos, one U.S. dollar can now purchase a full pound of strawberries in Mexico. These values represe:_________.
Answer:
The answer is:
a real exchange rate
Explanation:
The last word in the question seems to be incomplete, I am assuming that the intended word is "represent".
Real Exchange Rate (RER), also known as Real Effective Exchange Rates (REER) is an exchange rate that compares the relative price of the two countries' consumption baskets (what the average consumer buys and its price indicates how much consumers pay for it). It gives information beyond the nominal exchange rate or the relative prices of two currencies. In this example, the RER between the U.S dollar and the Mexican Pesos is used to determine what the U.S. dollar can buy in Mexico, as compared to what that same amount can buy in the U.S. This helps to tell us if a currency is undervalued or overvalued.
Torrid Romance Publishers has total receivables of $2,800, which represents 20 days’ sales. Total assets are $73,000. The firm’s operating profit margin is 5.9%. Find the firm's ROA and asset turnover ratio. (Use 365 days in a year. Do not round intermediate calculations. Round your final answers to 2 decimal places.)
Answer:
ROA=4.13
Asset turnover ratio = 0.70 times
Explanation:
1.Computation for ROA
Using this formula
ROA=Net income/Total assets
First step is to find Day's sales in receivables before calculating for the sales amount
Day's sales in receivables = Numbers of days in a year/Total receivables days sales
Let plug in the formula
Day's sales in receivables = 365 / 20
Day's sales in receivables = 18.25times
Now let find the Sales amount using this formula
Sales= Day's sales in receivables× Total receivables
Let plug in the formula
Sales = 18.25 times × $2,800
Sales=$51,100
Second step is to find the Net income
Using this formula
Net income =Percentage of Operating margin× Sales amount
Let plug in the formula
Net income=5.9%×$51,100
Net income =$3,014.90
Now let find the ROA using this formula
ROA=Net income/Total assets
Let plug in the formula
ROA=$3,014.90/$73,000
ROA=0.0413×100
ROA=4.13%
Therefore ROA will be 4.13%
2. Computation for asset turnover ratio
First step is to calculate for the Receivables turnover
Using this formula
Day's sales in receivables = Numbers of days in a year/Total receivables days sales
Let plug in the formula
Day's sales in receivables = 365 / 20
Day's sales in receivables = 18.25times
Second step is to find the Sales amount using this formula
Sales= Day's sales in receivables× Total receivables
Sales = 18.25 times × $2,800
Sales=$51,100
Now let calculate for the Asset turnover ratio using this formula
Asset turnover ratio = Sales / Total assets
Let plug in the formula
Asset turnover ratio= $51,100 / $73,000
Asset turnover ratio= 0.70 times
Therefore asset turnover ratio will be 0.70 times
Yong produces silk and polyester fabrics. Management has compiled the following unit selling price and unit cost information for the fabrics: Yong uses the same weaving machine to make both types of fabric. It takes 0.5 hours to make 1 yard of polyester fabric and 0.75 hours to make 1 yard of silk fabric. The machine can be operated a total of 5,000 hours per year. What is the contribution margin per machine hour for silk?
Answer:
$9.05
Explanation:
the information about prices and costs is missing, so I looked it up:
contribution margin per yard for silk = $18 - $4.10 - $2.70 - $3.51 - $0.90 = $6.79
contribution margin per yard for polyester = $10.20 - $0.80 - $2.90 - $3.77 - $0.60 = $2.13
contribution margin per machine hour:
silk = $6.79 x 1/0.75 = $9.05
polyester = $2.13 x 1/0.5 = $4.16
Simon Company's year-end balance sheets follow. Current Yr 1 Yr Ago 2 Yrs Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 29,328 83,351 103,760 9,078 257,087 $ 482,604 $ 32,285 $ 34, 323 57,663 45,764 76,967 50, 226 8,737 3,775 240,386 216,112 $ 416,038 $ 350, 200 $ 120,168 $ 70,310 $ 44,840 88,915 162,500 111,021 $ 482,604 96,646 75,072 162,500 162,500 86,582 67, 788 $ 416,038 $ 350, 200 (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three year period?
Answer:
1a. Current ratio = Current assets / Current Liabilities
Current year = $224,517 / $120168 = 1.88 : 1
1 years ago = $175,652 / $70,310 = 2.50 : 1
2 years ago =$134,088 / $44,840 = 2.99 : 1
1b. The Current ratio worse over three years period
2a. Acid test ratio = (Cash + Investment + Account Receivables) / Current liabilities
Current year = ($29,328 + $0 + $83,351) / $120,168 = 0.94 : 1
1 year ago = ($32,285 + $0 + $57,663) / $70,310 = 1.28 : 1
2 year ago = ($34,323 + $0 + $45,764) / $44,840 = 1.79 : 1
2b. The Acid test ratio are worse over three years period
Under the provisions of the Uniform Securities Act, an investment adviser's registration becomes effective:
Answer:
when the administrator so orders
Explanation:
Under this act the registration becomes effective when the administrator so orders. The administrator of the investment advisors association is responsible for reviewing the registration, making sure that all the information is legal, and also making sure that it meets all the required qualifications before approving it. Once this is done, it then becomes effective.
A furniture manufacturer specializes in wood tables. The tables sell for $150 and incur $60 in variable costs. The company has $11, 700 in fixed costs per month. The company desires to earn an operating profit of $10, 800 per month. (Abbreviation used; CM = contribution margin.)
1. Calculate the required sales in units to earn the target profit using the equation method.
2. Calculate the required sales in units to earn the target profit using the contribution margin method.
3. Calculate the required sales in dollars to earn the target profit using the contribution margin ratio method.
4. Calculate the required sales in units to break even using the contribution margin method.
Answer:
1. 250 wood tables
2. 250 wood tables
3. $37,500
4. 130 wood tables
Explanation:
Sales (units) required to earn a target profit = (Fixed Costs + Target Profit) ÷ Contribution per unit
Where,
Contribution per unit = Selling Price per unit - Variable Costs per unit
= $150 - $60
= $90
Therefore,
Sales (units) required to earn a target profit = ($11, 700 + $10, 800) ÷ $90
= 250 wood tables
Contribution Margin Ratio = Contribution / Sales × 100
= $90 / $150 × 100
= 60 %
Sales (dollars) required to earn a target profit = (Fixed Costs + Target Profit) ÷ Contribution Margin Ratio
= ($11, 700 + $10, 800) ÷ 60%
= $37,500
Sales in Units to Break Even = Fixed Costs ÷ Contribution per unit
= $11, 700 ÷ $90
= 130 wood tables
Size of Tax Shield. Roxy Broadcasting was originally an all-equity firm with a before-tax value of $10,000,000. Determine the size of the tax shield with a corporate tax rate of 16%, 20%, 35%, and 48% if Roxy's capital structure is 40 / 60 debt to equity Determine the same if the capital structure is 60/ 40.
1. If Roxy's capital structure is 4060 debt to equity, what is the size of the tax shield with a corporate tax rate of 16%? (Round to the nearest dollar.)
2. If Roxy's capital structure is 4060 debt to equity, what is the size of the tax shield with a corporate tax rate of 20%? $ (Round to the nearest dollar.)
3. If Roxy's capital structure is 40/60 debt to equity, what is the size of the tax shield with a corporate tax rate of 35%? (Round to the nearest dollar.)
4. If Roxy's capital structure is 4060 debt to equity, what is the size of the tax shield with a corporate tax rate of 48%?
5. If Roxy's capital structure is 60/40 debt to equity, what is the size of the tax shield with a corporate tax rate of 16%?
6. If Roxy's capital structure is 60 40 debt to equity, what is the size of the tax shield with a corporate tax rate of 20%? (Round to the nearest dollar.)
7. If Roxy's capital structure is 60/40 debt to equity, what is the size of the tax shield with a corporate tax rate of 35%? (Round to the nearest dollar.)
8. If Roxy's capital structure is 60 40 debt to equity, what is the size of the tax shield with a corporate tax rate of 48%? (Round to the nearest dollar.)
Holding other factors constant, if bad weather destroys the annual crop for carrots, it causes the supply curve for carrots to
Options:
a. Shift to the left, causing the prices of carrots to rise
b. Shift to the left, causing the prices of carrots to fall
c. Stay the same
d. The supply curve does not shift. Only the demand curve shifts.
Answer:
a. Shift to the left, causing the prices of carrots to rise
Explanation:
Indeed, going by the law of supply and holding all other factors constant, we would expect the supply curve to shift to the left, which implies that there would be an increase in the price of carrots.
What this means is that because there are now fewer carrots in the market as a result of the effects of the bad weather, there would be scarcity and so sellers would increase prices.
Vision statements are used to create a better understanding of the overall purpose and direction of the organization. Vision statements:
a. are very specific
b. provide specific objectives
c. set organizational structure
d. evoke powerful and compelling mental images
Answer:
d. evoke powerful and compelling mental images
Explanation:
The organizational vision is used so that companies have as aspirations to achieve their objectives and goals that will help companies to reach a desired place that helps the company to expand and obtain new achievements.
Therefore, when making a vision statement, companies combine powerful and attractive mental images to attest to goals that generate value for stakeholders, causing greater identification with an inspiring vision where there are development plans not only for their businesses, but for company in which the company operates eg.