Answer:
Expected value of these outcomes is $368
Explanation:
Expected value is the weighted average value of random variable. It is the sum of all the probable outcome.
Expected value can be calculated as follow
Outcomes ________ Probabilities _________ Expected values
$210 _______________ 20% ________________ $42
$340 _______________ 50% ________________ $170
$520 _______________ 30% ________________ $156
Total ____________________________________ $368
Question 7 of 10
How does fractional reserve banking increase the money supply?
O A. By automatically converting foreign currencies into U.S. dollars on
deposit
O B. By guaranteeing that all deposits are held in reserve as cash at all
times
O C. By using deposited money to make loans without reducing the
value of the deposits
O D. By giving banks the authority to print their own money in an
economic emergency
SUBMIT
Answer: C. By Using deposited money to make loans without reducing the value of the deposits
Explanation:
A.P.E.X
Answer:
c
Explanation:
Steve Colburn's portable sawmill used 100% for business, was completely destroyed by fire. The sawmill had an adjusted basis of $35,000 and a fair market value of $50,000 before the fire. The sawmill was uninsured. Steve's casualty loss is:________.1) $49,900.
2) $50,000.
3) $35,000.
4) $34,900.
Answer: $35,000
Explanation:
A casualty loss is simply a loss that an individual or business incurs when a property is damaged, or destroyed due to an unexpected or sudden event like fire, volcanic eruption, flood etc.
Here, Steve's casualty loss will be gotten when we compare both his adjusted basis and the fair market value and then we choose the lesser one. Since $35000 is lesser than $50000, therefore the answer will be $35000.
Regarding limited partners:________.
a. if the partnership agreement is silent as to notice required prior to termination, 90 days' written notice is required before the limited partner may withdraw.
b. they may not withdraw before the time that the partners have agreed the partnership will terminate.
c. they must obtain a court order to withdraw because of their limited liability and its effect on the remaining partners and third parties dealing with the business.
d. they may withdraw from the partnership at any time, but they forfeit their investment if they withdraw early.
Answer:
a. if the partnership agreement is silent as to notice required prior to termination, 90 days' written notice is required before the limited partner may withdraw.
Explanation:
Limited partners: The term "limited partner" is described as a "part-owner" of a specific company or organization whose liability associated with the company's debts can't exceed the amount that a person invested in that company. Limited partners are also referred to as "silent partners".
A "limited partner" can withdraw himself or herself from the company or firm any time he or she wants after a six months notice to the other partners, and the person who is withdrawing is being entitled to any specific distribution based on the agreement or, if none, associated with the "fair value" of the interest on the basis of the right to share in "distributions".
In the question above, the correct answer is option a.
What is international market segmentation? What challenges does it pose to Bentley?
Answer:
Bentley has differentiated and positioned its brand effectively. ... In traditional market there is a growth in high network people by 16.6%, Bentley will continue to grow because the potential customers grew.
Explanation:
Effective product positioning and differentiation are hallmarks of Bentley. Due to the increased number of prospective clients, Bentley will keep expanding.
What is the international market?An international market is one that is located entirely inside a firm's home country, whereas a global market is any specific location that is not within the borders of that nation.
Finding nations and/or customers that have important characteristics, such as desires and needs connected to a product, and who would be responsive to an item and ’s promotional mix.
Bentley sells premium cars and caters to high-income demographics in order to grow its brand. It is not afraid to demand a price that is normally expensive since it makes items of the highest caliber that are supplied only via private dealers.
Learn more about the international market, here:
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Gomez runs a small pottery firm. He hires one helper at $14,500 per year, pays annual rent of $7,500 for his shop, and spends $18,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him $5,000 per year if alternatively invested. He has been offered $23,000 per year to work as a potter for a competitor. He estimates he could use his talents to earn an additional $6,000 per year in consulting fees if he were working full time as a potter. Total annual revenue from pottery sales is $86,000.
Instructions:
A. Calculate the accounting profit for Gomez’s pottery firm.
B. Now calculate Gomez's economic profit.
Answer:
Gomez
Accounting Vs. Economic Profit
Accounting profit:
Sales revenue $86,000
Business cost 40,000
Profit $46,000
Economic profit:
Accounting profit $46,000
Opportunity cost 34,000
Profit $ 12,000
Explanation:
a) Data and Calculations:
Annual Wages for helper = $14,500
Annual Rent = $7,500
Annual Direct materials = $18,000
Business cost = $40,000
Funds investment = $40,000
Opportunity cost (alternative option)
Interest on funds = $5,000
Wages 23,000
Consulting fees 6,000
Total opportunity costs = $34,000
Total annual sales revenue = $86,000
b) Gomez's economic profit equals the accounting profit minus the expenses incurred for lost opportunities (alternative uses) of resources. This means that the economic profit is always less than the accounting profit, which does not consider opportunity costs.
Ivanhoe Company sublet a portion of its warehouse for five years at an annual rental of $71100, beginning on May 1, 2020. The tenant, Barbara Jones, paid one year's rent in advance, which Ivanhoe recorded as a credit to Unearned Rent Revenue. Ivanhoe reports on a calendar-year basis. The adjustment on December 31, 2020 for Ivanhoe should be:________.
Answer and Explanation:
The adjustment should be as follows
Unearned Rent Revenue $47,400
To Rent Revenue $47,400
(Being recording of revenue earned is recorded)
Here unearned rent revenue is debited as it decreased the liabilities and the rent revenue is credited as it increased the revenue. Also liabilities and revenue contains the normal debit balance
The working is shown below:
= $71,100 × 8 months ÷ 12 months
= $47,400
The eight months are calculated from May 1 to December 31
Using the following year-end information for Bauman, LLC, calculate the current ratio and acid-test ratio:_______. Cash $70,200 Short-term investments 12,800 Accounts receivable 49,500 Inventory 242,000 Prepaid expenses 18,000 Accounts payable 100,500 Other current payables 28,000a. 3.05 and 1.03. b. 2.91 and .97. c. 1.17 and 3.91. d. .97 and 3.05.
Answer:
a. 3.05 and 1.03
Explanation:
The formula for current ratio is
= Current assets/Current liabilities
= (Cash + Short term investment + Accounts receivable + Inventory + Prepaid expenses) / (Accounts payable + Other current payables)
= (70,200 + 12,800 + 49,500 + 242,000 + 18,000) / (100,500 + 28,000)
= 392,500 / 128,500
= 3.05
The formula for Acid test ratio is
= Quick Assets / Current liabilities
= (Cash + Short term investment + Accounts receivable) / (Accounts payable + Other current payables)
= (70,200 + 12,800 + 49,500) / (100,500 + 28,000)
= 132,500 / 128,500
= 1.03
Leia just read that the national debt owed by the federal government is at an all-time high. (Explain any possible impact on the federal government from unexpected inflation.)
Answer:
If the government of the country where Leia is from has a national debt at an all-time high, and at the same time, unexpected high inflation hits, the situation for the government can become extremely dire.
This is because high inflation will lower the value of the domestic currency, which is probably not the currency in which most of of the debt is owed. The proportion of the national debt that is owed in foreign currency will then become more expensive, because more units of domestic currency will be needed to exchange for the foreign currency, rendering the cost of the national debt a lot higher.
Suppose that United States produces 10,000,000 barrels of oil and 1,000 bushels of wheat each week. Suppose that Pakistan produces 9753 barrels of oil and 9753 bushels of wheat each week. 1. In autarky, what is the largest amount of wheat United States can consume every week? Number bushels 2. What does the term autarky refer to? a) The process of negotiating terms of trade between two countries. b) A major argument against globalization. c) countries Government policies meant to reduce international trade. d) A situation where one country does not engage in trade with other
Answer:
1. 1,000 bushels of wheat
2. d) A situation where one country does not engage in trade with other
Explanation:
1 & 2. Autarky refers to a situation where a country does not engage in trade with other countries but rather relies on its own production capacities to feed the consumption in the country.
Autarkies in the current world are not a thing because countries trade with each other. Even North Korea trades with Russia, China and others.
In an Autarky situation therefore, the United States would only be able to consume the wheat that it produces itself which according to the question is 1,000 bushels of wheat.
Answer: 1. 1000 bushels of wheat.
2. A situation where one country does not engage in trade with other.
Explanation:
Autarky simply refers to an economy that's self sufficient and doesn't depend on other economies and doesn't trade with them.
1. The largest amount of wheat that the United States can consume every week will be 1000 bushels of wheat. This is because in autarky, nations won't engage in trading so whatever quantity of whameat that's produced will be consumed.
2. Autarky situation where one country does not engage in trade with other. Therefore, the correct option is D.
Anna Garden recently opened her own basketweaving studio. She sells finished baskets in addition to selling the raw materials needed by customers to weave baskets of their own. Unfortunately, owing to space limitations, Anna is unable to carry all varieties of kits originally assembled and must choose between two basic packages.
The Basic Kit includes undyed, uncut reeds (with dye included) for weaving one basket. This basic package costs Anna $16 and sells for $30. The second kit, called Stage 2, includes cut reeds that have already been dyed. With this kit the customer need only soak the reeds and weave the basket. Anna produces the Stage 2 kit by using the materials included in the Basic Kit. Because she is more efficient at cutting and dying reeds than her average customer, Anna is able to produce two Stage 2 kits in one hour from one Basic Kit. (She values her time at $18 per hour.) The Stage 2 kit sells for $36.
Prepare an incremental analysis for Anna's basket weaving studio.
Answer:
Stage 1 kit Stage 2 kit Differential amount
Selling price $30 $36 $6
Materials cost ($16) ($16) $0
per unit
Additional labor $0 $18/2 = ($9) ($9)
cost per unit
Contribution margin $14 $11 ($3)
per unit
Anna will lose $3 for every Stage 2 kit that she sells. Only if he is able to sell a much higher quantity of Stage 2 kits would it be worth it, but under current conditions Anna should focus on selling Stage 1 kits.
Discuss the relationship between competition and consumer expectations.
Answer:
The relationship between competition and consumer expectations is by what the compitition is creating in terms of product and functionability. And the consumer expectation is what will help the by buying into this product.
Explanation:
Stepsis is doing laundry today, but the machine is not working, she crawls in and sees whats wrong, she fixes it but shes stuck, she calls StepBro.
What should StepBro do?
A. Call Jamal
B. Pull her out
C. Dice Roll Dance And Bunny Hop Dance
D. I like ya cut G her
Answer:
b or d
Explanation:
because pulling her out might get the problem done faster , but I like ya cut g her could resolve in even more action . um I go with d
Answer:
B
Explanation:
Be a decent human being boys
Use the information for the question(s) below. Rosewood Industries has EBIT of $450 million, interest expense of $175 million, and a corporate tax rate of 35% If Rosewood had no interest expense, its net income would be closest to:___________ a. $430 million b. $160 million c. $290 million d. $405 million
Answer:
$180 million
Explanation:
Net income is calculated as;
= (EBIT - Interest expense)(1 - tax)
Given that;
EBIT = $450 million
Interest expense = $175 million
Tax = 35%
Net income = (450 - 175)(1 - 0.35)
Net income = (275)(0.65)
Net income = $178.75
Net income = $180 million approximated.
Rosewood's net income is closest to $180 million.
Match each balance sheet item to its correct category.
Categories: Assets, Liabilities, Equity
Balance sheet items: Cash, Rent, Loan, wages payable, retained earnings, computers, furniture, owners personal investment
Answer:
See below
Explanation:
Assets, Liabilities, and Equity form the basis for preparing the balance sheet. They make the accounting equation of Assets= Liabilities + Equity.
Assets are the valuables a business owns. They can be in the form of cash, money in the banks, financial instruments, properties, machines, or motor vehicles.
Assets will be
Cashcomputers,furnitureLiabilities are what the business owes to third parties and supplies. Liabilities are usually in the monetary form, such as loans, rent, and accounts payable.
Liabilities
Rent, Loanwages payable,Equity is the owner's contribution to the business. They include capital and retained earnings.
Equity
retained owners personal investment earnings,Excerpts from Dowling Company's December 31, 2021 and 2020, financial statements and key ratios are presented below (all numbers are in millions): 2021 2020Accounts receivable (net) $22 $33 Net sales $132 $117 Cost of goods sold $77 $72 Net income $22 $34 Inventory turnover 6.05 Return on assets 12.3 % Equity multiplier 2.53 Dowling's return on equity for 2021 is: (Round your answer to 1 decimal places.)Multiple Choicea) 7.7%.b) 16.7%.c) 31.1%.d) 24.1%.
Answer:
The answer is "12.7"
Explanation:
In the question the correct choice is missing so, its correct solution can be defined as follows:
Following are the formula for calculating the "Average Inventory":
Formula:
[tex]\therefore \text{Inventory Turnover} = \frac{ \text{Cost of Goods Sold}} { \text{Average Inventory}}\\\\\\\because \text{Average Inventory} = \frac{ \text{Cost of Goods Sold}} {\text{Inventory Turnover}}[/tex]
[tex]=\frac{\$ \ 77}{ 6.05}\\\\=12.7\\[/tex]
Assume you have a 1-year investment horizon and are trying to choose among three bonds. All have the same degree of default risk and mature in 10 years. The first is a zero-coupon bond that pays $1,000 at maturity. The second has an 6.2% coupon rate and pays the $62 coupon once per year. The third has a 7.2% coupon rate and pays the $72 coupon once per year.
a. If all three bonds are now priced to yield 7% to maturity, what are their prices?
b. If you expect their yields to maturity to be 7% at the beginning of next year, what will their prices be then? What is your before-tax holding-period return on each bond? If your tax bracket is 30% on ordinary income and 20% on capital gains income, what will your aftertax rate of return be on each?
c. If you expect their yields to maturity to be 6% at the beginning of next year, what will their prices be then? What is your before-tax holding-period return on each bond? If your tax bracket is 30% on ordinary income and 20% on capital gains income, what will your aftertax rate of return be on each?
Answer:
a. If all three bonds are now priced to yield 7% to maturity, what are their prices?
zero coupon bond = $1,000 / (1 + 7%)¹⁰ = $508.35
6.2% coupon bond:
PV of face value = $1,000 / (1 + 7%)¹⁰ = $508.35
PV of coupon payments = $62 x 7.0236 (PV annuity factor, 7%, 10 periods) = $435.46
market price = $943.81
7.2% coupon bond:
PV of face value = $1,000 / (1 + 7%)¹⁰ = $508.35
PV of coupon payments = $72 x 7.0236 (PV annuity factor, 7%, 10 periods) = $505.70
market price = $1,014.05
b. If you expect their yields to maturity to be 7% at the beginning of next year, what will their prices be then? What is your before-tax holding-period return on each bond? If your tax bracket is 30% on ordinary income and 20% on capital gains income, what will your aftertax rate of return be on each?
zero coupon bond = $1,000 / (1 + 7%)⁹ = $543.93
before tax holding period return = ($543.93 - $508.35) / $508.35 = 7%
after tax HPR = 7% x 0.8 = 5.6%
6.2% coupon bond:
PV of face value = $1,000 / (1 + 7%)⁹ = $543.93
PV of coupon payments = $62 x 6.5152 (PV annuity factor, 7%, 10 periods) = $403.94
market price = $947.87
before tax holding period return = ($947.87 - $943.81 + $62) / $943.81 = 7%
after tax HPR:
($4.06 x 0.8) / $943.81 = 0.34%
($62 x 0.7) / $943.81 = 4.60%
total = 4.94%
7.2% coupon bond:
PV of face value = $1,000 / (1 + 7%)⁹ = $543.93
PV of coupon payments = $72 x 6.5152 (PV annuity factor, 7%, 10 periods) = $469.09
market price = $1,013.02
before tax holding period return = ($1,013.02 - $1,014.05 + $72) / $1,014.05 = 7%
after tax HPR:
(-$1.03 x 0.8) / $1,014.05 = -0.08%
($72 x 0.7) / $1,014.05 = 4.97%
total = 4.89%
c. If you expect their yields to maturity to be 6% at the beginning of next year, what will their prices be then? What is your before-tax holding-period return on each bond? If your tax bracket is 30% on ordinary income and 20% on capital gains income, what will your aftertax rate of return be on each?
zero coupon bond = $1,000 / (1 + 6%)⁹ = $591.90
before tax holding period return = ($591.90 - $508.35) / $508.35 = 16.44%
after tax HPR = 16.44% x 0.8 = 13.15%
6.2% coupon bond:
PV of face value = $1,000 / (1 + 6%)⁹ = $591.90
PV of coupon payments = $62 x 6.8017 (PV annuity factor, 6%, 10 periods) = $421.71
market price = $1,013.61
before tax holding period return = ($1,013.61 - $943.81 + $62) / $943.81 = 13.96%
after tax HPR:
($69.80 x 0.8) / $943.81 = 5.92%
($62 x 0.7) / $943.81 = 4.60%
total = 10.52%
7.2% coupon bond:
PV of face value = $1,000 / (1 + 6%)⁹ = $591.90
PV of coupon payments = $72 x 6.8017 (PV annuity factor, 6%, 10 periods) = $489.72
market price = $1,081.62
before tax holding period return = ($1,081.62 - $1,014.05 + $72) / $1,014.05 = 13.76%
after tax HPR:
($67.57 x 0.8) / $1,014.05 = 5.33%
($72 x 0.7) / $1,014.05 = 4.97%
total = 10.30%
Karen Moore is a new employee with Cars R Us. One of her first responsibilities as the new HR Director is to create an incentive program for the organization. Cars R Us specializes in selling and leasing mid-priced vehicles across the United States. The organization has locations in each state in the four main regions of the United States. Recently, however, employee performance has been declining along with the unfortunate decline of car sales.
Before Ms. Moore creates an incentive program, she knows she will need to identify what is best practice for the industry, what the organization has done to reward the employees in the past as well as know what the financial constraints are to the new incentive program. Once completed, she will be able to implement a well-constructed incentive program established with the goals of increasing employee job satisfaction and performance as well as improve the companyâs financial position.
One of the first items on Ms. Mooreâs agenda is to identify the preferred method of earning rewards. In reviewing the results of a recent survey completed by more than 60 percent of the employees, she learns that the employees are competitive and are interested in group incentives programs as well as individual rewards.
Ms. Moore recommends Cars R Us include a _______ system that will provide all employees to receive a portion of the increase in productivity and effectiveness.
A. gainsharing
B. cost
C. equity
D. reduction
E. timesharing
Answer: A. gainsharing
Explanation:
A Gainsharing system is the one that Ms. Moore recommended because it involves providing employees with a portion of the increase in gains accrued from increased productivity and effectiveness.
Gainsharing ensures that employees are motivated to work harder for the company because they get a share if the company improves its productivity so they will have a vested interest in ensuring that the company becomes better.
Mike Finley wishes to become a millionaire. His money market fund has a balance of $403,884 and has a guaranteed interest rate of 12%. How many years must Mike leave that balance in the fund in order to get his desired $1,000,000?
Assume that Sally Williams desires to accumulate $1 million in 15 years using her money market fund balance of $209,004. At what interest rate must Sallyâs investment compound annually? (Round answer to 0 decimal places, e.g. 5%.)
Answer:
Mike Finley
t = 7.999983133 years rounded off to 8 years
Sally Williams
r = 0.110000123 or 11.0000123% rounded off to 11.00%
Explanation:
Mike Finley
To calculate the time period it will take Mike Finley to become a millionaire, we will use the formula of future value of cash flow. The formula for future value of cash flow is as follows,
Future value = Present value * (1+r)^t
Where,
r is the interest rate or rate of returnt is the time period in yearsPlugging in the values for Future value, present value and r in the formula, we can calculate the t to be,
1000000 = 403884 * (1+0.12)^t
1000000 / 403884 = 1.12^t
2.475958444 = 1.12^t
Taking log on both sides.
ln(2.475958444) / ln(1.12) = t
t = 7.999983133 years rounded off to 8 years
Sally Williams
We will use the same formula for future value of cash flows as we used above to calculate the rate at which investment should be compounded annually to grow to $1 million.
1000000 = 209004 * (1+r)^15
1000000 / 209004 = (1+r)^15
4.784597424 = (1+r)^15
Taking root of 1 on both sides.
(4.784597424)^1/15 = (1+r)^15 * 1/15
1.110000123 = 1+r
1.110000123 - 1 = r
r = 0.110000123 or 11.0000123% rounded off to 11.00%
An unfavorable production-volume variance ________. A. is not a good measure of a lost production opportunity B. indicates that the company had reduced its per unit fixed overhead cost to improve sales C. takes into account the effect of additional revenues due to maintaining higher prices D. measures the amount of extra fixed costs planned for but not used
Answer:
d) measures the amount of extra fixed costs planned for but not used
Explanation:
An unfavorable production-volume variance measures the amount of extra fixed costs planned for but not used. As per production-volume variance extra fixed costs planned for but not used has unfavorable production-volume variance.
When production-volume variance is unfavorable, that means the fixed cost are allocated on lesser number of manufactured units, hence it indicates that the fixed costs are not controlled well.
If any portion of a long-term debt is to be paid in the next year, the entire debt should be classified as a current liability. A. True B. False
Answer:
B. False
Explanation:
The portion of a long term liability that is due within one year is called current portion of long-term debt (CPLTD). The name basically explains everything. E.g. you owe a note receivable worth $100,000 and every year you must pay an installment of $10,000 plus interest. The CPLTD (current liability) = $10,000, and the long term debt = $90,000.
The estimate an organization makes regarding the number and quality of its current employees and the availability of workers externally is called a(n):________
Answer:
Labor supply forecast
Explanation:
The estimate an organization makes regarding the number and quality of its current employees and the availability of workers externally is called a labor supply forecast. This information is very important when determining the number of workers required to meet the labor demands of an organization.
Some examples of the economic and qualitative factors that affects the external supply of labor includes transportation, availability of housing, quality of life, number of training institutes or facilities, wages, demographic trends, immigration etc.
What is the rate of return on an investment of $124,090 if the company expects to receive $10,000 per year for the next 30 years? A. 5.5 percent B. 4 percent C. 7 percent D. 6 percent
Answer:
C. 7 percent
Explanation:
The computation of the rate of return on the investment is shown below:
Given that
PV = $124,090
FV = $0
PMT = $10,000
NPER = 30
The formula is shown below:
=RATE(NPER;PMT;-PV;FV;TYPE)
The present value comes in negative
After applying the above formula, the rate of return is 7%
Hence, the rate of return on the investment is 7%
The correct option is c. 7%
The next dividend payment by Skippy, Inc., will be $2.95 per share. The dividends are anticipated to maintain a growth rate of 4.8 percent, forever. If the stock currently sells for $53.10 per share, what is the required return?A) 2.67%
B) 5.56%
C) 4.80%
D) 10.36%
E) .27%
Answer:
the correct option is D. 10.36%
Explanation:
The computation of the required return is shown below:
As we know that
Current Price = Expected Dividend ÷ (Required Return - Growth Rate)
(Required Return - Growth Rate) = Expected Dividend ÷ Current Price
Required Return = (Expected Dividend ÷ Current Price ) + Growth rate
= ($2.95 ÷ $ 53.10) + 4.8%
= 10.36%
hence, the correct option is D. 10.36%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Year Cash Flow 0 –$5,500 1 1,300 2 1,500 3 1,900 4 1,400 What is the payback period for the set of cash flows given above?
Answer: 3.57 years
Explanation:
Payback period is the amount of time it would take for a project to pay back its initial investment.
Investment = $5,500
Year 1 + 2 + 3 = 1,300 + 1,500 + 1,900 = $4,700
With cash flow of $1,400 coming in fourth year and $800 remaining for payback, investment will be paid back in fourth year.
Payback period = Year before payback + Amount left/ Cashflow in year of payback
= 3 + (5,500 - 4,700) / 1,400
= 3.57 years
Giving customers time to pay their bill generates more sales. But when a recession hits, they may have trouble making payments. If you have businesses as clients, they may have slow-paying customers, and that means they will be slow to pay you. That is what happened to a company that offered a discount card as its primary product. The owner estimated that 50 percent of the firm's customers—other small businesses—were behind in paying what they owed. The owner needed those customers to keep his business operating, so he was hesitant to demand payment on past due accounts.
1. Should a small business owner push customers to pay when times are tough? Why or why not?
2. What problems do you think a business services company might have when is customers do not pay?
Answer:
1. A compromise should be reached.
In the recession, the other small businesses are suffering including the company in question. If the owner pushes the customers to pay their bills, when the recession ends they may move to other vendors which would have made demanding money from them in the recession a myopic and damaging move.
The business however, also has bills to pay and so needs money to maintain operations as well. A compromise needs to be reached. The owner should contact the other businesses still owing and negotiate with them to pay a certain portion of what they owe with the rest coming later.
This could give the owner enough to keep the business running whilst maintaining the loyalty of his customers.
2. Problems that a business services company could have if customers do not pay include;
Inability to pay staff. Inability to pay utilities like electricity.Inability to pay rent and other expenses.Increased risk of debt default.Growth of company suffers.Some recent financial statements for Smolira Golf Corp. follow:
SMOLIRA GOLF CORP.
2014 and 2015 Balance Sheets
Assets Liabilities and Owners' Equity
2014 2015 2014 2015
Current assets Current liabilities
Cash $ 24,056 $ 24,200 Accounts payable $ 23,284 $ 27,200
Accounts receivable 12,548 15,300 Notes payable 12,000 10,900
Inventory 25,592 27,200 Other 11,671 15,900
Total $62,196 $ 66,700 Total $ 46,955 $ 54,000
Long-term debt $ 90,000 $103,000
Owners' equity
Common stock and
paid-in surplus $42,000 $42,000
Accumulated retained
earnings 208,936 233,000
Fixed assets
Net plant and
equipment $325,695 $365,300 Total $250,936 $275,000
Total assets $387,891 $432,000 Total liabilities and
owners' equity $387,891 $432,000
SMOLIRA GOLF CORP.
2015 Income Statement
Sales $336,329
Cost of goods sold 231,000
Depreciation 21,600
Earnings before interest and taxes $ 83,729
Interest paid 14,400
Taxable income $ 69,329
Taxes (35%) 24,265
Net income $45,064
Dividends $21,000
Retained earnings 24,064
1. The company's profit margin is __________ percent.
2. The total asset turnover is __________ times.
3. The equity multiplier is __________ times.
4. Using the Du Pont Identity, the company's ROE is __________ percent.
Answer:
1. The company's profit margin is 13.4% percent.
profit margin = net income / net sales = $45,064 / $336,329 = 13.4%
2. The total asset turnover is 0.82 times.
asset turnover ratio = net sales / average assets = $336,329 / [($387,891 + $432,000)/2] = $336,329 / $409,945.50 = 0.82
3. The equity multiplier is 1.7 times.
equity multiplier = average total assets / average total equity = $409,945.50 / [($205,936 + $275,000)/2] = $409,945.50 / $240,468 = 1.70
4. Using the Du Pont Identity, the company's ROE is 18.68% percent.
ROE = profit margin x asset turnover x equity multiplier (or financial leverage) = 0.134 x 0.82 x 1.7 = 0.1868 = 18.68%
Samuel, Inc. has Accounts Receivable of $110,000 and an Allowance for Doubtful Accounts of $17,000. If it writes-off a customer account balance of $1,700, what is the amount of its net accounts receivable?A) 591,300. B) $108,300. C) $110,000. D) $93,000.
Answer:
the net account receivable is d. $93,000
Explanation:
The computation of the net account receivable is shown below:
= (Account receivable - written off amount) - (Allowance for doubtful accounts - written off amount)
= ($110,000 - $1,700) - ($17,000 - $1,700)
= $108,300 - $15,300
= $93,000
Hence, the net account receivable is $93,000
We simply applied the above formula so that the correct value could come
And, the same is to be considered
If there is an excess supply of money in the economy, A. there is also an excess demand for money B. there is also an excess demand for bonds C. there is also an excess supply of bonds D. the interest rate will rise E. the Fed must intervene to restore equilibrium
Answer: B. there is also an excess demand for bonds
Explanation:
When there is an excess supply of money in the economy, there is also an excess demand for bonds.
This is because in his case, rather than holding money, individuals will want to increase their being holdings and therefore, this will lead to the reduction in their holding of money. Equilibrium will further be restored as there'll be reduction in interest rate.
QUESTION 11
Which of the following is not a type of ethics theory?
O Deontology
O Utilatrianism
Behaviorism
Moral Realitism
The term that does not belong to type of ethics theory is Deontology.
The Bioethics can be regarded as a term that is used in explaining some disciplines such as;
medical ethics animal ethicsenvironmental ethics.Examples of types of ethic theory are;
UtilatrianismBehaviorismMoral RealitismTherefore, Deontology does not belong to type of ethics theory.
Learn more about ethics theory at;
https://brainly.com/question/4207376
Identify and explain the dimensions of Iqra University’s culture, ranging from high level to low level for each dimension of culture.
The correct answer to this open question is the following,
The dimensions of Iqra University’s culture are the following.
Iqra University is a private university in Pakistan, and one of the most prominent colleges in the Pakistan education system.
The most important dimension of its culture is to provide high-quality education to its students. This university tries to match the graduates with the always-changing market necessities in Pakistan.
Another important aspect is that school teachers instill critical thinking abilities in each of their students because as part of its culture, they want to help students think wisely in a complicated world in order to choose the best decision and action.
One key aspect of its culture is ethics. The University put emphasis on moral values as a way to make good decisions, not only in business but in life.