THIS IS THE COMPLETE QUESTION BELOW;
Frank purchased land containing oil reserves for $425,000. He has calculated his cost depletion for the year to be $20 per barrel for a total of $120,000 in depletion expense. He now needs to calculate his percentage depletion in case it is larger. His gross income from the oil extraction is $600,000 and he has $520,000 in operating expenses before depletion expense. Assuming this is domestic production, the amount of percentage depletion expense is $______1 of 3. If he uses this method he can deduct $________2 of 3 for tax purposes. He should use the______3 of 3 depletion method to maximize his deduction.
(The percentage depletion rate is15% of gross income and limited to 65% of the net income)
Answer:
1) $52,000
2)$68,000
3) Percentage depletion
Assuming this is domestic production, the amount of percentage depletion expense is ($52,000) If he uses this method he can deduct ($68,000)for tax purposes. He should use the (percentage depletion)method to maximize his deductions.
Explanation:
Given:
Total income = $600,000
operating expense = $520,000
The net income can be calculated as
(Total income - operating expense)
= $600,000 - $520,000 = $80,000
The percentage depletion rate when the gross income is 15% = $600,000 × 0.15
= $90,000
At 65% of the net income can be calculated as
$80,000 × 0.65
= $52,000
1) The percentage depletion rate expenses = $52,000, this is because the $90,000 which is the 15% of the gross income is greater than the value of the net income.
2 )If he uses this method he can deduct
he can deduct The percentage depletion rate expenses from the total of $120,000 in depletion expense which is
$120,000 - $52,000 = $68,000
3) He should therefore use the percentage depletion method to maximize his deductions
At the beginning of 2016, EZ Tech Company's Accounts Receivable balance was $140,000, and the balance in Allowance for Doubtful Accounts was $2,350 (Cr.). EZ Tech's sales in 2016 were $1,050,000, 80% of which were on credit. Collections on account during the year were $670,000. The company wrote off $4,000 of uncollectible accounts during the year. Prepare summary journal entry related to the (a) sale during 2016.
Answer:
EZ Tech Company
Journal Entries:
Debit Cash Account $210,000
Credit Sales Revenue $210,000
To record sale of goods for cash.
Debit Accounts Receivable $840,000
Credit Sales Revenue $840,000
To record sale of goods on account.
Debit Cash Account $670,000
Credit Accounts Receivable $670,000
To record the receipt of cash on account.
Debit Uncollectible Expense $4,000
Credit Accounts Receivable $4,000
To record direct write-off of uncollectibles.
Explanation:
a) Accounts Receivable:
Beginning balance $140,000
Sales on credit 840,000
Cash receipts -670,000
Uncollectible -4,000
Ending balance $306,000
b) The direct write-off of the uncollectible accounts could have also been treated through the Allowance for Doubtful Accounts by debiting the account before crediting it with the Uncollectible Expense account. Since there is no instruction to the contrary, we have used the direct method instead, for simplicity.
Diego owns 30 % of Azul Corporation. Azul Corporation owns 50 % of Verde Corporation. Under the attribution rules applying to stock redemptions, Diego is treated as owning 15 % of Verde Corporation.
A. True
B. Flase
Answer:
Option A,true is correct
Explanation:
The indirect interest of Diego in Verde Corporation is the percentage holding in Azul Corporation multiplied by percentage holding that Azul Corporation owns in Verde Corporation as further illustrated below:
Holding in Verde Corporation=30%*50%
Holding in Verde Corporation=15.00%
In other words, the statement that Diego is treated as owning 15 % of Verde Corporation is true
Jane and Brad both produce nuts and coffee. They each prefer to consume a diet that is half nuts and half coffee. Both have access to the same resources. If Jane focuses on producing only coffee, she can produce 20 pounds of coffee in a week. If she only produces nuts, she can produce 40 pounds of nuts in a week. Brad can produce a maximum of 15 pounds of coffee in a week. He could also choose to produce only nuts, in which case he can produce 20 pounds of nuts a week.
Part 1. Who has an absolute advantage in coffee production? Who has an absolute advantage in nut production?
A. Jane has an absolute advantage in coffee, and Brad has an absolute advantage in nuts.
B. Jane has an absolute advantage in both coffee and nuts.
C. Brad has an absolute advantage in both coffee and nuts.
D. Brad has an absolute advantage in coffee, and Jane has an absolute advantage in nuts.
Part 2. a. What is the opportunity cost for Jane to produce one more pound of nuts? pounds of coffee
b. What is the opportunity cost for Jane to produce one more pound of coffee? pounds of nuts
c. What is the opportunity cost for Brad to produce one more pound of nuts? pounds of coffee
d. What is the opportunity cost for Brad to produce one more pound of coffee? pounds of nuts
Part 3. Who has a comparative advantage in nut production? Who has a comparative advantage in coffee production?
A. Brad has a comparative advantage in both coffee and nut production.
B. Jane has a comparative advantage in both coffee and nut production.
C. Brad has a comparative advantage in nut production, and Jane has a comparative advantange in coffee production.
D. Jane has a comparative advantage in nut production, and Brad has a comparative advantange in coffee production.
From the information given above, it can be ascertained that Jane and Brad are competitors, and that Brad has an absolute advantage in coffee, and Jane has an absolute advantage in nuts. Therefore, the option D holds true.
What is the significance of absolute advantage?An absolute advantage can be referred to or considered as the advantage that a firm has over others in an economy owing to multiple factors with respect to production, supplying, and distribution and other such activities.
In a condition given above, Brad has a productivity more than Jane in terms of coffee, while Jane has better productivity over Brad in terms of beans. They both have absolute advantage where they have better rate of production compared to their competitors.
Therefore, the option D holds true and states regarding the significance of absolute advantage.
Learn more about absolute advantage here:
https://brainly.com/question/13221821
#SPJ2
The complete and precise question has been added below for better reference.
Jane and Brad both produce nuts and coffee. They each prefer to consume a diet that is half nuts and half coffee. Both have access to the same resources. If Jane focuses on producing only coffee, she can produce 20 pounds of coffee in a week. If she only produces nuts, she can produce 40 pounds of nuts in a week. Brad can produce a maximum of 15 pounds of coffee in a week. He could also choose to produce only nuts, in which case he can produce 20 pounds of nuts a week.
Part 1. Who has an absolute advantage in coffee production? Who has an absolute advantage in nut production?
A. Jane has an absolute advantage in coffee, and Brad has an absolute advantage in nuts.
B. Jane has an absolute advantage in both coffee and nuts.
C. Brad has an absolute advantage in both coffee and nuts.
D. Brad has an absolute advantage in coffee, and Jane has an absolute advantage in nuts.
Mike's Roadside Market buys produce from area farmers, marks the merchandise at a price that includes some profit, and then sells the fruit and vegetables to the people in and around Centerville. Mike's would be classified as part of a ____ market.
Answer:
reseller
Explanation:
A resller is a person that purchases finished goods and sells them again to customers in order to earn a profit. Resellers do not make changes or modify the products they buy. Resellers can be wholesalers or retailers.
i hope my answer helps you
Both the inventory conversion period and payables deferral period use the average daily COGS in their denominators, whereas the average collection period uses average daily sales in its denominator. Why do these measures use different inputs
Answer:
Explanation:
In business accounting, the inventory conversion period / payables deferral period and average collection period use different inputs due to the fact that Inventory and accounts payable are carried at cost on the balance sheet, whereas accounts receivable are recorded at the price at which goods are sold. Therefore the accounts receivable (average collection period) are attached and dependent on the specific/changing price of the goods sold.
Square Hammer Corp. shows the following information on its 2018 income statement: Sales = $264,000; Costs = $170,000; Other expenses = $7,900; Depreciation expense = $14,500; Interest expense = $13,300; Taxes = $20,405; Dividends = $10,000. In addition, you’re told that the firm issued $4,800 in new equity during 2018 and redeemed $3,300 in outstanding long-term debt. a. What is the 2018 operating cash flow
Answer:
The 2018 operating cash flow is $86,100.
Explanation:
Operating Cash flow is different from Income as it only involves movement in cash.
Thus our first step is to find the Operating Income then adjust it with non-cash items to reach an Operating Cash flow amount.
Sales = $264,000
Less Costs = ($170,000)
Less Other expenses = ($7,900)
Depreciation expense = ($14,500)
Operating Income = $71,600
Adjust for non-cash item - depreciation
Operating Income = $71,600
Add back depreciation = $14,500
Operating Cash flow = $86,100
Interest expenses and taxes are not part of operating income as they arise out of secondary activities of the company.
Conclusion :
The 2018 operating cash flow is $86,100.
Aspen Ski Resorts has 100 employees, each working 40 hours per week and earning $20 an hour. Although the company does not pay any health or ree tirement benefits, one of the perks of working at Aspen is that employees are allowed freskiing on their days off. Federal income taxes are withheld at 15% and state income taxes at
Answer:
1. a. Total Salary Expense
= No. Of Employees * Hourly rate * Hours worked
= 100 * 20 * 40
= $80,000
b. Total Witholdings from Employee Salaries
This will include all Taxes.
= Federal Income Taxes + FICA Taxes + States Income Taxes
= (80,000 * 15%) + (80,000 * 7.65%) + (80,000 * 5%)
= 12,000 + 6,120 + 4,000
= $22,120
c. Actual Direct Deposit of Payroll.
This refers to the actual amount that will be paid to Employees.
= Total Salary Expense - Taxes
= 80,000 - 22,120
= $57,880
In practice, the gross income (wages or salaries) of an employee is entitled to some compulsory deductions such as States Taxes, Federal Taxes, Federal Payroll tax, Benefit, Insurance Etc.
Here, various information of Tax rate have been given, therefore, the computations of the requirement goes as followsTotal Salary Expense = Number Of Employees * Hourly rate * Hours worked
Total Salary Expense = 100 * $20 * 40
Total Salary Expense = $80,000
Total Withholding from Employee Salaries = Federal Income Taxes + FICA Taxes + States Income Taxes
Total Withholding from Employee Salaries = ($80,000 * 15%) + ($80,000 * 7.65%) + ($80,000 * 5%)
Total Withholding from Employee Salaries = $12,000 + $6,120 + $4,000
Total Withholding from Employee Salaries = $22,120
Actual Direct Deposit of Payroll = Total Salary Expense - Taxes
Actual Direct Deposit of Payroll = $80,000 - $22,120
Actual Direct Deposit of Payroll = $57,880
Missing question includes "Aspen Ski Resorts has 100 employees, each working 40 hours per week and earning $20an hour. Although the company does not pay any health or retirement benefits, one of the perks of working at Aspen is that employees are allowed free skiing on their days off. Federal income taxes are withheld at 15% and state income taxes at 5%. FICA taxes are 7.65% of the first $113,700 earned per employee and 1.45% thereafter. Unemployment taxes are 6.2% of the first $7,000 earned per employee Compute the total salary expense, the total withholdings from employee salaries and the actual direct deposit of payroll for the first week of January"
See similar solution here
brainly.com/question/13872796
For a uniform series that starts at the end of the year two and stops at the end of year eight, the (F/A, i%, 7) factor will yield an F value at the end of year nine.
a. True
b. False
Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $28,525. Clayborn's May bank statement shows $25,000 on deposit in the bank. Determine the adjusted cash balance using the following information: Deposit in transit $ 8,650 Outstanding checks $ 6,900 Bank service fees, not yet recorded by company $ 140 A NSF check from a customer, not yet recorded by the company $ 1,635 The adjusted cash balance should be:
Answer:
$26,750
Explanation:
The computation of the adjusted cash balance is shown below;
= Debit balance in the cash account - bank service fees - NSF check from a customer
= $28,525 - $140 - $1,635
= $26,750
The other items would be relevant to the bank balance and therefore it should not be considered in the given case
Hence, the adjusted cash balance is $26,750
During 2018, its first year of operations, Pave Construction provides services on account of $142,000. By the end of 2018, cash collections on these accounts total $101,000. Pave estimates that 25% of the uncollected accounts will be bad debts.
Required:
Record the adjustment for uncollectible accounts on December 31, 2018.
Answer:
Dr Bad Debt Expense 10,250
Cr Allowance for Uncollectible Accounts 10,250
Explanation:
Preparation of the Journal entry to Record the adjustment for uncollectible accounts on for Pave Construction
Since we were told that the company provides services on account of the amount of $142,000 in which by the end of the year 2018, the cash collections total the amount of $101,000 which means we have to less $101,000 from $142,000 which gave us $41,000.
We were as told that Pave estimates that 25% of the uncollected accounts will be bad debts this means we have to find the 25% of $41,000 which gave us $10,250.
Therefore the transaction will be recorded as:
Dr Bad Debt Expense 10,250
Cr Allowance for Uncollectible Accounts 10,250
($41,000 x 25%)
Service provided $142,000- Cash collection $101,000=$41,000
12. A company has an EPS of $2.00, a book value per share of $20, and a market/book ratio of 1.2x. what is its P/E ratio
Answer:
P/E Ratio = 12x or 12 times
Explanation:
We know that the P/E ratio is calculated by dividing the price per share by the earnings per share or EPS.
P/E = Price per share / Earnings per share
We already have EPS. We need to calculate the price per share.
It is given that book value per share is $20 and the market to book ratio is 1.2x or 1.2 times. Using the formula for market to book ratio, we calculate the market price per share to be,
M/B = Market price per share / Book value per share
1.2 = Market price per share / 20
20 * 1.2 = Market price per share
Market price per share = $24
So, P/E ratio = 24 / 2
P/E Ratio = 12x or 12 times
QS 8-8 Bank reconciliation LO P3 Nolan Company's cash account shows a $21,268 debit balance and its bank statement shows $19,711 on deposit at the close of business on June 30. Outstanding checks as of June 30 total $2,231. The June 30 bank statement lists $27 in bank service charges; the company has not yet recorded the cost of these services. In reviewing the bank statement, a $50 check written by the company was mistakenly recorded in the company’s books as $59. June 30 cash receipts of $3,801 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement. The bank statement included a $31 credit for interest earned on the company’s cash in the bank. The company has not yet recorded interest earned. Prepare a bank reconciliation using the above information.
Answer: Please see explanation column for ansswer
Explanation:
A bank reconciliation is a document that reconciles or tallies the cash balance on the company's books to the corresponding amount on its bank statement which helps a company or business check and monitor unauthorized cash transactions and rectify any inconsistency.
Bank Reconciliation for Nolan Company in June 30
Bank Statement Balance $19, 711
Add:
Deposit made $3, 801
$23,512
Deduct:
Outstanding checks - $2,231
Adjusted Bank Balance $21,281
Cash Balance per Company's Records $21,268
Add:
Interest earned $31
Error in recording check (59-50) $9
$21,304
Deduct:
Service charges -$27
Adjusted Bank Balance $21,281
A push strategy is favorable when a company Multiple Choice wants to advertise consumer goods. has long distribution channels. needs to explain complex new products. faces high inflation rates. has sufficient print or electronic media available.
Answer:
wants to advertise consumer goods.
The push strategy of marketing helps if the company is new, or if the company wants to advertise a new consumer good.
The new company or the new consumer good is probably not well-known among consumers, and for this reason, pushing the product to them is likely to be more helpful in obtaining sales than a pull strategy.
Needs to explain complex new products.
Complex products like some consumer electronics often need to be sold under a push strategy in which the salesperson explains the product in detail to the potential customer.
This is done because otherwise, consumers may feel intimidated by the complexity of the product, and desist from acquiring it.
Historically, money has not always been of uniform quality. For example, diamonds were often used as a form of money, but every diamond is different. What problem occurs when money is not of a uniform quality?
Answer:
People will hoard high-quality money and spend low-quality money. As a result, the money used in transactions will be of inferior quality.
Explanation:
Since in the question it is given that the money is not always been of the same quality or uniform quality. Just take an example - like diamond most often used as a money form but if we compare the diamonds so it is different
The problem in the case when money does not have the same quality is of inferior goods as many people want to buy high quality money while other people spend on cheaper quality money
Hence, the first option is correct
Brokers and sales agents who submit required criminal background information and fingerprints to TREC when seeking their original license:________.
Answer: Will Make sane submission when their liscence is expired
Explanation:
Institutions are very careful this days with documents and information they receive from organization, and so advise this organizations to file in their criminal records so they know what they have done and can track whatever sheddy deals they did in the past. This process is also carried out when renewing liscence.
Libby Company manufactures a single product by a continuous process, involving the production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $160,000, $125,000, and $150,000, respectively. The journal entry to record applied factory overhead is
Answer:
Work In Process Account $150,000 (debit)
Overheads $150,000 (credit)
Explanation:
Overheads are included in Work In Process Account at their Applied Amounts .Thus a Debit in Work In Process Account and a Credit in Overheads Account is required for this entry.
A mining company is considering a new project. Because the mine has received a permit, the project would be legal; but it would cause significant harm to a nearby river. The firm could spend an additional $11 million at Year 0 to mitigate the environmental Problem, but it would not be required to do so. Developing the mine (without mitigation) would cost $69 million, and the expected net cash inflows would be $23 million per year for 5 years. If the firm does invest in mitigation, the annual inflows would be $24 million. The risk adjusted WACC is 14%.
1. Calculate the NPV and IRR with mitigation. Round your answers to two decimal places. Enter your answer for NPV in millions.
2. Calculate the NPV and IRR without mitigation. Round your answers to two decimal places. Enter your answer for NPV in millions.
Answer:
1. Calculate the NPV and IRR with mitigation. Round your answers to two decimal places. Enter your answer for NPV in millions.
NPV = $2.39 millionIRR = 15.24%2. Calculate the NPV and IRR without mitigation. Round your answers to two decimal places. Enter your answer for NPV in millions.
NPV = $9.96 millionIRR = 19.86%Explanation:
1) initial cost $80 million
expected cash flows $24 during the next 5 years
WACC = 14%
using a financial calculator (or excel spreadsheet),
NPV = $2.39 million
IRR = 15.24%
2) initial cost $69 million
expected cash flows $23 during the next 5 years
WACC = 14%
using a financial calculator (or excel spreadsheet),
NPV = $9.96 million
IRR = 19.86%
Duluth Ranch, Inc. purchased a machine on January 1, 2018. The cost of the machine was $35,000. Its estimated residual value was $11,000 at the end of an estimated 5-year life. The company expects to produce a total of 20,000 units. The company produced 1,300 units in 2018 and 1,750 units in 2019.
Required:
a. Calculate depreciation expense for 2018 and 2019 using the straight-line method.
b. Calculate the depreciation expense for 2018 and 2019 using the units-of-production method.
c. Calculate depreciation expense for 2018 through 2022 using the double-declining balance method.
Answer:
Duluth Ranch, Inc.
a. Depreciation Expense for 2018 and 2019, using the straight-line method:
2018: $24,000/5 = $4,800
2019: $24,000/5 = $4,800
b. Depreciation Expense for 2018 and 2019, using the units-of-production method:
2018 = 1,300 x $1.20 = $1,560
2019 = 1,750 x $1.20 = $2,100
c. Depreciation Expense for 2018 through 2022, using the double-declining balance method:
Depreciation Rate = 100%/5 x 2 = 40%
Beginning Bal. Depreciation Declining balance
2018: $35,000 $14,000 ($35,000 x 40%) $21,000 ($35,000 - 14,000)
2019: $21,000 $8,400 ($21,000 x 40%) $12,600 ($21,000 - $8,400)
2020: $12,600 $1,600 ($12,600 x 40%)* $11,000 ($12,600 - $1,600)
2021: $11,000 $0
2022: $11,000 $0
*NB: The calculated depreciation expense for 2020 is $5,040. But, the balance after depreciation must not be below the residual value. So, only the difference is expensed.
Explanation:
a) Data and Calculations:
Cost of machine = $35,000
Residual value = 11,000
Depreciable amount $24,000
Useful life = 5 years
Straight-line depreciation per year = $24,000/5 = $4,800
Expected production unit = 20,000
Depreciation rate per unit = $24,000/20,000 = $1.20
b) The straight-line method of depreciation simply divides the depreciable amount ($24,000) by the useful life of 5 years to determine a straight-line depreciation expense of $4,800 per year.
c) The unit-of-production method calculates the depreciation rate per unit (Depreciable amount divided by total expected production units) and applies this rate, $1.20, to the total units produced in each period to determine the depreciation expense.
d) The double-declining balance method divides 100% by the useful life of the asset and then multiplies this 2, to obtain the depreciation rate. This rate is then applied to the cost and declining balance each year. The double-declining balance method, initially does not take into cognizance the residual value of the asset. It only considers this salvage value towards the end when it adjusts the depreciation charge for the last year so that the declined balance will equal to the residual value.
Rasheed works for Company A, earning $299,000 in salary during 2019. Assuming he is single and has no other sources of income, what amount of FICA tax will Rasheed pay for the year
Answer:
$13,466
Explanation:
For 2019, the wage limit for Social Security tax is $132900
Thus;
Social Security tax $132,900x 6.2% = $8,239.80
Medicare tax = $299,000 x 1.45% = $4335.50
Additional Medicare Tax ($299,000 - $200000) x 0.9% = $891
therefore,
Amount of FICA Tax = $8239.80 + $4335.50 + $891 = $13,466.30 which is approximately $13,466
During the first month of the year, the Boise plant produced 92,000 belts. Actual leather purchased was 287,500 strips at $3.60 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 78,200 hours at $12.50 per hour. Required: 1. Compute the costs of leather and direct labor that should be incurred for the production of 92,000 leather belts.
Answer:
1. Cost of Leather
Leather strips cost $12 as a standard for labor.
Cost of Leather = $12 * quantity
Cost of Leather = $12 * 92,000
= $1,104,000
2. DIrect Labor Cost
Costs $9 per the amount of time it takes to produce the belts.
Labor Cost = 9 * 92,000
Labor Cost = $828,000
A bond with a par value of $5,000 is quoted at 103.936. What is the dollar price of the bond?
a) $4,828.95
b) $5.231.45
c) $5,196.80
d) $5.147.31
e) $5,16710
Answer:
C. $5,196.80
Explanation:
Calculation for the dollar price of the bonds
Let find the dollar price of the bonds using this formula
Dollar price=Per value bond amount × The Per value quoted percentage 103.936/100=1.03936
Dollar price =$5,000×1.03936
Dollar price =$5,196.80
Therefore the dollar price of the bonds will be $5,196.80
A customer buys shares of a stock that had its initial public offering 5 years ago. Which statement is TRUE regarding prospectus delivery
Answer:
A prospectus is not required because the initial public offering happened 5 years ago
Explanation:
A prospectus is a legal document which is to be filled by Securities and Exchange Commission (SEC) that reflects the details with respect to the investment offering to the public in terms of stocks, bond, mutual funds, etc
On the other hand the initial public offering is the offering done by the company for the first time to the public related to the investment
Since in the question it is mentioned that the customer purchased the shares of stock but its initial public offering is done 5 years ago so no prospectus is required
The fair value of net identifiable assets of a reporting unit of Y Company is $270,000. The carrying value of the reporting unit's net assets on Y Company's books is $320,000, including $50,000 of goodwill before any impairment. If the reported goodwill impairment for the unit is $10,000, what would be the fair value of the entire reporting unit?
Answer: $310,000
Explanation:
From the question, we are informed that the fair value of net identifiable assets of a reporting unit of Y Company is $270,000 and that the carrying value of the reporting unit's net assets on Y Company's books is $320,000, including $50,000 of goodwill before any impairment. We are further told that the reported goodwill impairment for the unit is $10,000.
To calculate the fair value of the entire reporting unit, we deduct the goodwill impairment for the unit which is $10,000 from the carrying value of the reporting unit's net assets on Y Company's books which is $320,000. This will be:
= $320,000 - $10,000
= $310,000
If the population of a country is 1,000,000 people, its labor force consists of 600,000, and 60,000 people are unemployed, the unemployment rate is:
Answer:
Unemployment rate= 10%
Explanation:
Giving the following information:
Population= 1,000,000 people
Labor force= 600,000
Unemployed= 60,000 people
To calculate the unemployment rate, we need to use the labor force, not the total population. It only considers people working and actively looking for a job.
Unemployment rate= unemployed population / labor force
Unemployment rate= 60,000 / 600,000
Unemployment rate= 0.1= 10%
Indicate whether each scenario wll affect the GDP deflator or the CPI for the United States,
Shows up in the.
GDP Scenario
A decrease in the price of a Treewood Equipment feller buncher, which is a commercial forestry machine made in the U.S. but not bought by U.S. consumers
An increase in the price of a German-made phone that is popular among U.S. consumers Deflator CPI.
Answer:
1st scenario shows the GDP deflator and second shows the CPI.
Explanation:
The consumer price index (CPI) is determined by dividing the market price of commodities (basket) with the base year prices of that basket or commodity and then multiply with a hundred. The CPI reflects only the price of goods and services brought by the consumer.
Therefore, the first scenario price of a treewood is the GDP deflator and the second scenario is CPI.
When delivering bad news to customers, use an indirect strategy as you would with other bad news messages, and maintain a positive tone. Occasionally, companies disappoint their customers. Whenever possible, these problems should be addressed immediately. Choose the best answer for the following question about handling customer problems.
What is the first step you should take when a problem arises?
1. Call the individual customer.
2. Disguise the problem as a "technical error."
3. Explain to the customer what they did that caused the problem
Answer:
1
Explanation:
Well, the focus of an indirect strategy is to create a new peak of satisfaction, when dealing with a disappointing situation. So the key is leaving a positive tone after all. Since maintaining a regular customer is always cheaper than getting a new one.
So, it's important to have an honest conversation with the customer and and offer a good compensation and provide a follow up until the problem is solved, so that the customer be enchanted by the respect shown. In addition to this, make this a turning point. By doing that the customer will regain confidence.
Easier access to talent, markets, and sources of supply globally, forces companies to focus less on the overall worldwide operations system and more on country-specific aspects.
a. True
b. False
Boatler Used Cadillac Co. requires $890,000 in financing over the next two years. The firm can borrow the funds for two years at 11 percent interest per year. Ms. Boatler decides to do forecasting and predicts that if she utilizes short-term financing instead, she will pay 7.25 percent interest in the first year and 12.55 percent interest in the second year. Assume interest is paid in full at the end of each year.
A. Determine the lot al two-year interest cost under each plan.
Interest Cost
Long term fixed-rate plan
Short term variable-rate
B. Which plan is less costly?
1. Long term fixed-rate plan
2. Short-term variable-rate plan
Answer:
A. Total two-year interest cost under long term fixed-rate plan is $195,800; while total two-year interest cost under short term variable-rate is $176,220.
B. Short-term variable-rate plan is less costly.
Explanation:
A. Determine the total two-year interest cost under each plan.
This can be determined for each of the plan as follows:
For Long term fixed-rate plan
Total two-year interest cost under long term fixed-rate plan = Amount required * Interest rate per year * Number of years = $890,000 * 11% * 2 = $195,800
For Short term variable-rate
First year interest cost under short term variable-rate = Amount required * First year interest rate = $890,000 * 7.25% = $64,525
Second year interest cost under short term variable-rate = Amount required * Second year interest rate = $890,000 * 12.55% = $111,695
Total two-year interest cost under short term variable-rate = First year interest cost + Second year interest cost = $64,525 + $111,695 = $176,220
Therefore, we have:
Interest Cost
Long term fixed-rate plan $195,800
Short term variable-rate $176,220
B. Which plan is less costly?
Since the total two-year interest cost under short term variable-rate of $176,220 is less than $195,8000 total two-year interest cost under long term fixed-rate plan, the Short-term variable-rate plan is therefore less costly.
Why would bankers need to see the business plan?
Which example best describes reducing risky behavior?
-getting car insurance
-deciding not to buy a car
-only driving during the day
- driving a car at high speeds
Answer: Only driving during the day.
Explanation: This is the correct answer on Edge 2020 (I just took the quiz for it ^-^).
The example that best describes reducing risky behavior is only driving during the day.
What are risky behaviours?Risky behaviours are acts that could bring negative consequences like risks to life, death and injury etc.
Risky behavior can be regarded as behavior that can endanger our life or injure us if we engage in it.
Hence, the example that best describes reducing risky behavior is only driving during the day.
Learn more about risky behaviours here : https://brainly.com/question/4957823
#SPJ2