Answer:
P/E ratio = 6.40 times
Option c is the correct answer.
Explanation:
The P/E ratio or price earnings ratio measures the price that the investors are willing to pay for each $1 of earnings of the company. It is calculated as follows,
P/E ratio = Price per share / Earnings per share
We can calculate the earnings per share by dividing the net income by the number of shares outstanding.
P/E ratio = 32 / (170000 / 34000)
P/E ratio = 6.40 times
15 stores and their distribution warehouse. The Paint Supply Store franchise sells an average of 70 gallons of Purple Paint every week (for 52 weeks per year). Their current policy is that when they place an order for Purple Paint from their supplier, they order 90 gallons at a price of $4.00 per gallon. [The company does not hold Safety Stock] It takes 2.50 weeks to receive an order from the supplier. Administrative costs for Ordering paint have been estimated to be $35 per order. Holding Costs = 40% of the purchase price per gallon per year. What is the Total Annual Inventory Cost for the company's current policy?
Answer: $1,487.56
Explanation:
Total annual inventory cost = Ordering cost + Inventory Holding cost
Ordering cost = Number of orders * ordering cost
= (Annual demand / Order quantity) * 35
= ((52 weeks per year * 70) / 90) * 35
= $1,415.56
Inventory holding cost:
= Average inventory * holding cost
= (90 gallons / 2) * (40% * 4)
= $72
Total annual inventory cost = 1,415.56 + 36
= $1,487.56
Santiago Incorporated has a constructing company in which he does major constructing jobs and also leases his heavy-duty equipment to help supplement his income. His cash account is very important in the running of both of his businesses as he uses the accrual basis of accounting . What method would you suggest that Jay Santiago use for recording cash flow from operating activities and why?
Answer:
"Direct Method" is the right answer.
Explanation:
The direct approach provides a clearer overview of how a company receives currency. And therefore it is regarded as equivalent to the alternative manner.Compared to the price of something like the money market account throughout the particular circumstance, the above direct method of registering cash balance somewhat from operations would be advised.I NEED HELP ASAP
Type the correct answer in the box. Spell all words correctly.
What is the advantage of employing more than one sales channel?
Employing more than one sales channel is useful to lessen the ______ that arise from dependence on specific clients or markets.
Answer:
The risks
Explanation:
That is what goes in the blank
Answer:
risks
Explanation:
correct on edmentum
High-Low Method Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 1,495 $198,720 2,650 223,450 3,795 309,120 a. Determine the variable cost per unit and the total fixed cost. Variable cost: (Round to the nearest dollar.) $fill in the blank 1 per unit Total fixed cost: $fill in the blank 2 b. Based on part (a), estimate the total cost for 1,900 units of production. Total cost for 1,900 units: $fill in the blank 3
Answer:
1. Variable cost per unit = [Total cost at highest level - Total cost at lowest level] / (Highest level of unit- Lowest level of unit)
Variable cost per unit = [$309,120 - $198,720] / [3,795 - 1,495]
Variable cost per unit = $110,400 / 2,300
Variable cost per unit = $48
Fixed costs = Total cost at highest level - [Variable cost per unit*Highest level of unit]
Fixed costs = $309,120 - [$48*3,795]
Fixed costs = $309,120 - $182,160
Fixed costs = $126,960
2. Total cost = Fixed cost + Variable cost
Total cost = $126,960 + $48*(1,900 units)
Total cost = $126,960 + $91,200
Total cost = $218,160
Garcia Co. owns equipment that cost $81,600, with accumulated depreciation of $43,200. Garcia sells the equipment for cash. Record the sale of the equipment under the following three separate cases assuming Garcia sells the equipment for (1) $50,600 cash, (2) $38,400 cash, and (3) $33,300 cash. Record the sale of equipment assuming Garcia sells the equipment for $50,600 cash.
Answer:
1. Cash Debit $ 47,000
Accumulated Depreciation equipment Debit $ 40,800
Gain on sale of equipment Credit $ 11,000
Equipment Credit $ 76,800
To record sale of equipment for $ 47,000 and gain on sale of $ 11,000
2. Cash Debit $ 36,000
Accumulated Depreciation equipment Debit $ 40,800
Equipment Credit $ 76,800
To record sale of equipment for $ 36,000
3. Cash Debit $ 31,000
Accumulated Depreciation equipment Debit $ 40,800
Loss on sale of equipment Debit $ 5,000
Equipment Credit $ 76,800
To record sale of equipment for $ 31,000 and loss on sale of $ 5,000
Explanation:
Computation of net book value
Cost of equipment $ 76,800
Less: Accumulated depreciation $ 40,800
Net book value $ 36,000
In first step where the equipment is sold of $ 47,000, the differential between the sale value and the net book value is the gain on sale and is credited in the accounting entry.
In the second step, where the equipment is sold for $ 36,000, the sale proceeds is exactly equal to the net book value and no gain or loss is recorded.
In the third step, the equipment is sold for $ 31,000 and the differential between the net book value and the sale proceeds is a loss and recorded as a debit in the accounting entry
The is recorded as Book value of old equipment = $81,600 − $43,200 =38,400 which is consider as Cash.
What is depreciation?As a result of use, damage, or obsolescence, an asset's monetary worth drops in value over time indicating depreciation. This depreciation cause due wear and tear, expiration, or consumption.
The calculation for the sale of equipment is attached with the answer.
Therefore, the Gain on sale of Equipment is calculated as 12,200 and the Loss on sale of equipment as 5,100 under separate cases.
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what issues should be covered in the negotiations between your organization and the outsourcing organization. You can list the issue, and then follow up with a couple of sentences to explain. Some groups think of this as what goes into the contract, although there are issues to consider that might not be in the contract. Cultural differences between the two organizations would be an example of an issue that is important to consider, but may not be put in the contract.
The correct answer to this open question is the following.
Although there are no options attached we can say the following.
The issues that should be covered in the negotiations between your organization and the outsourcing organization are the following.
As it is written in the question, the corporate culture of the outsourcing company is one of the issues to be discussed because it is important that the outsource company understand your values, mission, and mission, so the relationship could be professional and amicable.
Then, one important aspect of the negotiation must be the lines of communication to be "on the same page."
Another issue is the services to be provided, the price for each service and the way results are going to be measured.
As important as the previous issue, is the quality of the people who are going to be temñporarly hired, so there are no big differences between the quality of work from the employees of your company vs. the employees recommended and hired by the outsourcing company.
The level of expertise at suppliers is a major concern of your company. The outsourcing company has to show ways provable ways that guaranteed the expertise of suppliers.
One final important aspect is the solution of controversies in case there are problems between suppliers and your company, knowing that the outsourcing company is responsible for the hirings and contracts with the outsourced workers.
Which of the following activities might you consider adding a time buffer to? Activities with scarce resources Activities with severe risks Merge activities that are prone to delays Noncritical activities with very little slack You might consider adding a time buffer to any of these activities.
Answer:
You might consider adding a time buffer to any of these activities.
Explanation:
Project management can be defined as the process of designing, planning, developing, leading and execution of a project plan or activities using a set of skills, tools, knowledge, techniques and experience to achieve the set goals and objectives of creating a unique product or service.
Generally, projects are considered to be temporary because they usually have a start-time and an end-time to complete, execute or implement the project plan.
Furthermore, the main purpose of project management is working toward a common goal.
This ultimately implies that, project managers should ensure adequate attention and time is taken to identify, analyze and manage capital, raw materials, people, system of tasks and other resources, so as to effectively and efficiently achieve a common goal with all project stakeholders.
A time buffer also referred to as slacks or lag can be defined as the additional amount of time added to a project in order to keep it on track and/or flexible.
Generally, in the execution of a project, when a task is delayed it normally affects the start or finishing time of the other tasks (successors) in a project. The amount of time that is permitted for an activity to be delayed without delaying the early start date of any immediately following (succeeding) activities refers to free slack, which is capable of having an adverse effect on entire project.
A project manager might consider adding a time buffer to any of the following activities;
I. Activities with scarce resources.
II. Activities with severe risks.
III. Merge activities that are prone to delays.
IV. Noncritical activities with very little slack.
Beginning investments should be?
Answer:
Investment Beginner
There are plenty of investments for beginners, including mutual funds and robo-advisors.
…
Here are six investments that are well-suited for beginner investors.
401(k) or employer retirement plan.
A robo-advisor.
Target-date mutual fund.
Index funds.
Exchange-traded funds (ETFs)
Investment app
Explanation:
Braun Company has one service department and two operating (production) departments. Maintenance Department costs are allocated to the two operating departments based on square feet occupied. Listed below are the operating data for the current period:
Department Direct Expenses Square Feet
Maintenance $25,500
Milling 76,500 10,000
Assembly 105,400 15,000
The total cost of operating the Assembly Department for the current period is: _________
Answer:
Total operating expenses for assembly department $120,700
Explanation:
The computation of the total operating cost for the assembly department is given below;
Given that
Maintainance department direct expenses is $25500
Here we have to divided into 2 departments
So the new ratio is 10,000: 15,000
i.e. direct expenses with respect to the maintenance department share per square feet is
= $25500 ÷ (10000 + 15000)
= $1.02 per square feet.
Now total direct expenses for the assembly department :
Direct expenses $105400
Add: Allocation of maintenance department direct expenses ($1.02 × 15000 square feet) $15300
Total operating expenses for assembly department $120,700
You are provided with the following information for Najera Inc. for the month ended June 30, 2017. Najera uses the periodic method for inventory.
Date Description Quantity Unit Cost or Selling Price
June1 Beginning inventory 38 $42
June4 Purchase 135 $46
June10 Sale 108 $70
June11 Sale return 12 $70
June18 Purchase 58 $48
June18 Purchase return 9 $48
June25 Sale 64 $75
June28 Purchase 33 $52
Required:
Calculate cost per unit.
Answer:
$46.56
Explanation:
Calculation to determine the cost per unit.
Units Units Cost Total cost
June1 Beginning inventory 38* $42 =$1,596
June4 Purchase 135 *$46=$6,210
June18 Purchase 58 *$48=$2,784
June18 Purchase return (9) *$48=($432)
June28 Purchase 33 *$52=$1,716
Total= 255 $11,874
Now let calculate the cost per unit using this formula
Weighted average cost per unit=Costs of goods sold for sale/Units available for sales
Let plug in the formula
Weighted average cost per unit=$11,874/255
Weighted average cost per unit=$46.56
Therefore the cost per unit is $46.56
Vandelay Industries has a target capital structure consisting of 40% debt, 5% preferred stock, and 55% common equity. Vandelay has 20-year, 11% semiannual coupon bonds that sell at their par value of $1,000. The component cost of preferred stock is 12.4%. Vandelay is a constant growth firm that recently paid a dividend of $2.05, sells for $27.00 per share, and has a growth rate of 7%. Flotation costs on new common stock are 10%, and the firm's marginal tax rate is 25%. What is Vandelay Industries’ WACC assuming they will have to use internal equity?
a. 13%
b. 12.24%
c. 12.74%
d. none of these choices
Answer:
b. 12.24%
Explanation:
The computation is shown below;
The cost of debt is 11%
As when the bonds would be sell at par value so yield to maturity = coupon rate = cost of debt i.e. 11%
Now
cost of equity= ((Do × (1+g)) ÷ P)+g
= (($2.05 × (1 + 7%)) ÷ 27) + 7
= 15.12%
Now
WACC = weight of equity × cost of equity + weight of preferred equity × cost of equity + weight of debt × cost of debt × (1 - tax rate)
= 55% × 15.12% + 5% ×12.4% + 40% × 11% × (1 - 25%)
= 12.24%
Calculate Payroll K. Mello Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee: Consultant Computer Programmer Administrator Regular earnings rate $2,810 per week $36 per hour $46 per hour Overtime earnings rate Not applicable 2 times hourly rate 1.5 times hourly rate Federal income tax withheld $930 $238 $515 For hourly employees, overtime is paid for hours worked in excess of 40 hours per week. For the current pay period, the computer programmer worked 55 hours and the administrator worked 65 hours. Assume further that the social security tax rate was 6%, and the Medicare tax rate was 1.5%. Determine the gross pay and the net pay for each of the three employees for the current pay period. Assume the normal working hours in a week are 40 hours. If required, round your answers to two decimal places.
Answer:
1. Consultant's earning
Gross pay $2,810
Net pay $1,669.25
2. Computer Programmer
Gross pay $2,520
Net pay $2,093
3. Administrator Income
Gross pay $3,565
Net pay $2,782.62
Explanation:
Calculation to Determine the gross pay and the net pay for each of the three employees for the current pay period
1. Calculation for Consultant Income gross pay and Net pay
Consultant's earning = $2,810
Based on the information given Consultant's GROSS PAY will be $2,810
Calculation to determine the Net pay using this formula
NET PAY = Gross pay - Withheld tax - Medicare tax - social security tax
Let plug in the formula
Where,
Withheld tax = $930
Social security tax = 6% of Total earning
Social security tax= $2,810 * 6%
Social security tax= $168.6
Medicare tax = 1.5% of total earning
Medicare tax= $2,810 * 1.5%
Medicare tax = $42.15
Let plug in the formula
NET PAY = $2,810 - $930 - $42.15 - $168.6
NET PAY= $1,669.25
Therefore Consultant Income gross pay is $2,810 and Net pay is $1,669.25
2. Calculation to determine Computer Programmer gross pay and Net pay
Calculation for GROSS PAY
Rate of earning = $36 per Hour
Working Hours = 55 Hours
Computer programmer Earning = $36 * 55
Computer programmer Earning= $1,980
Overtime hours = 55 - 40
Overtime hours= 15 hours
Overtime earning = 2 times of hourly rate = 15* $36
Overtime earning= $540
GROSS PAY = $1,980+$540
GROSS PAY=$2,520
Calculation to determine the NET PAY
Using this formula
Net Pay = Gross pay - Withheld tax - Medicare tax - Social security tax
Where,
Withheld tax = $238
Social security tax = ($1,980+$540) * 6%
Social security tax= $2,520*6%
Social security tax=$151.2
Medicare tax = 1.5% of total earning
Medicare tax= $2,520 * 1.5%
Medicare tax = $37.8
Let plug in the formula
NET PAY = $2,520 - $238 - $37.8 - $151.2
NET PAY =$2,093
Therefore Computer Programmer Gross pay is $2,520 and the Net pay is $2,093
3. Calculation for Administrator Income Gross pay and Net pay
Calculation for GROSS PAY
Rate of earning = $46 per Hour
Working Hours = 65 Hours
Administrator Earning = $46 * 65
Administrator Earning= $2,990
Overtime hours = 65 - 40
Overtime hours= 25 hours
Overtime earning = 1.5 times of hourly rate = 25 * ($46/2) ( half of the rate is taken)
Overtime earning =25*23
Overtime earning =$575
GROSS PAY = $2,990+$575
GROSS PAY =$3,565
Calculation to determine the NET PAY
Using this formula
Net Pay = Gross pay - Withheld tax - Medicare tax - Social security tax
Where,
Withheld tax = $515
Social security tax = ($2,990+$575) * 6%
Social security tax= $3,565*6%
Social security tax=$213.9
Medicare tax = 1.5% of total earning
Medicare tax = $3,565 * 1.5%
Medicare tax =$53.48
Let plug in the formula
NET PAY = $3,565 - $515 - $53.48 - $213.9
NET PAY= $2,782.62
Therefore Administrator Income is Gross pay $3,565 and the Net pay is $2,782.62
Why should interest earned NOT be a factor with your emergency fund?
O Interest-bearing accounts at banks earns a high rate of interest, therefore, interest is not a concern.
It should be a factor.
O Inflation can eat up the interest earned.
O The emergency fund is not intended to grow wealth
Answer:
O The emergency fund is not intended to grow wealth
Item Skipped Item 10 Assume a company makes four products (A, B, C, and D) in a single facility. Data concerning these products appear below: Product A Product B Product C Product D Selling price per unit $ 42.30 $ 50.00 $ 37.60 $ 33.50 Variable manufacturing cost per unit $ 20.80 $ 30.70 $ 21.00 $ 19.90 Variable selling cost per unit $ 2.70 $ 2.10 $ 1.00 $ 2.40 Milling machine minutes per unit 3.30 4.10 2.60 1.30 Monthly demand in units 1,000 4,000 3,000 3,000 The milling machines are the constraint in the production facility. A total of 14,000 minutes is available per month on these machines. Up to how much should the company be willing to pay for one additional minute of milling machine time if the company has made the best use of the existing milling machine capacity
Answer:
The company should be willing to pay less than $4.20 for one additional minute of milling machine time.
Explanation:
a) Data and Calculations:
Product Product Product Product
A B C D
Selling price per unit $42.30 $50.00 $37.60 $33.50
Variable manufacturing cost per unit $20.80 $30.70 $21.00 $19.90
Variable selling cost per unit $2.70 $2.10 $1.00 $2.40
Total variable costs per unit $23.50 $32.80 $22,00 $22.30
Contribution per unit $18.80 $17.20 $15.60 $11.20
Milling machine minutes per unit 3.30 4.10 2.60 1.30
Contribution per minute $5.70 $4.20 $6.00 $8.62
Monthly demand in units 1,000 4,000 3,000 3,000
Minutes required 3,300 16,400 7,800 3,900
Best use of existing minutes 2,300 0 7,800 3,900
Additional minutes required 1,000 16,400 0 0
Total minutes required = 31,400
Minutes available = 14,000
Minutes to buy = 17,400
Lost contribution from:
Product A = (1,000 * $5.70 = $5,700
Product B = (16,400 * $4.20 = 68,880
Total lost contribution $74,580
Required time to produce lost contribution = 17,400
Estimated to pay for additional minute = $4.29 ($74,580/17,400)
Identify the cultural differences between Greece and Switzerland as per the GLOBE project
your answer is here
Egrane, Inc.'s monthly bank statement showed the ending balance of cash of $18,700. The bank reconciliation for the period showed an adjustment for a deposit in transit of $1,600, outstanding checks of $2,200, a NSF check of $900, bank service charges of $40 and the EFT from a customer in payment of the customer's account of $1,700. What is the up-to-date ending Cash balance
Answer:
Up-to-date cash balance $18,100
Explanation:
The computation of the up to date ending cash balance is shown below:
Cash balance as per bank statement $18,700
Add: Deposit-in-transit $1,600
Less: Outstanding checks -$2,200
Up-to-date cash balance $18,100
Here we add the deposits and subtracted the outstanding checks so that the up to date cash balance could come
The same would be considered
All of the following are part of an accounting system except:
Answer:
C
Explanation:
its either c or a , the question is not worded right on canvas
An entity had the following account balances at year end. Sales $452,000 Cash 23,400 Accounts payable 14,300 Rent expense 3,700 Accounts receivable 9,400 Cost of goods sold 214,000 Land 104,000 Unearned revenue 6,800 Gain on sale 17,500 Equipment 28,800 Inventories 2,200 Notes payable 67,000 What is the amount of total current assets reported on the balance sheet
Answer:
Total Current Assets = 35000
Explanation:
The current assets are the assets of a business which are expected to be used or sold within a year. These assets normally include cash, cash at bank, accounts receivables, inventory etc. The total current assets for the given question will be,
Current Assets
Inventory 2200
Accounts Receivable 9400
Cash 23400
Total 35000
Which of the following stocks had the highest trading price at the end of the day?
the answer is D, I had the same problem
The correct option is D. Search Engine had the highest trading price at the end of the day. Because the low is 470.56 which highest among all of them.
What is stock?A stock is a type of instrument that denotes the holder's ownership stake in the issuing company and is typically traded on stock markets. To raise money to run their businesses, corporations issue stock.
Thus, the highest trading price at the end of the day is because search engine makes a high of 477.65 in the day which is the highest among all of them.
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why is education considered as an investment
The regular selling price is $22 per unit. Costs are $16 per unit, which consists of $8 direct labor per unit, $3 direct materials per unit, $2 variable overhead per unit, and $3 fixed overhead per unit. Sales are low because of a recession. A large retail chain offered to buy 1,000 units from you at a discounted price of $16. Assume that you have enough spare capacity to fulfill this special order. If you accept the special order in the short term, profit will: Group of answer choices decrease by $6,000 decrease by $3,000 increase by $6,000 increase by $3,000 remain the same
Answer:
decrease by $6,000
Explanation:
The computation of the profit in the case when the special order is accepted is shown below:
given that
Regular selling price = 22
Discounted selling price= 16
number of units to be sold =1000
Now
discount = 1000 ×($22 - $16)
= $6,000
Hence, profit decreases by $6000
Therefore the option first is correct
The same would be considered
All Kiwi Ltd (a New Zealand-based company) has a wholly-owned subsidiary in Malaysia whose manager is being evaluated on the basis of the variance between actual profit and budgeted profit in New Zealand dollars (NZD). Relevant information in Malaysian ringgit (MYR) for the current year is as follows: Budget Actual Revenues MYR 12,000,000 MYR 11,000,000 Expenses 9,000,000 9,000,000 Current year actual and projected exchange rates between the New Zealand dollar (NZD) and the Malaysian ringgit (MYR) are as follows: Actual at time of budget preparation NZD 0.312 per MYR 1 Projected ending at time of budget preparation NZD 0.340 per MYR 1 Actual at end of budget period NZD 0.357 per MYR 1 Required: Calculate the total budget variance for the current year using a projected exchange rate (projected at the time the budget is prepared).
Answer:
Variance (Unfavorable) (NZD 340,000)
Explanation:
Budget Variance using exchange rate projected at the time of budget
Budget Actual Variance Exc. Rate Variance in NZD
MYR MYR
Revenue 12000000 11000000 -1000000 0.34 -340000
Expenses 9000000 9000000 0 0.34 0
Profit 3000000 2000000 -1000000 0.34 -340000
an industrial oven and fryer is an example of which factor of production?
a. land
b. labor
c. capital
d. more than one type is correct
Answer:
I believe this is C. capital
Answer:
C
Explanation:
Capital
Assume you just purchased 100 shares of Apple stocks at $300. You are worrying that the competition from other tablet PC and smart phone producers will have a negative impact on Apple stock prices in 1 month. Generally speaking, you are still quite bullish on Apple stock. In order to hedge against this downside risk, you establish a protective put position by buying a put option contract with around 1-month maturity on Apple stock. However, the premium of the put option with strike price at $300 is $12, which is quite expensive. If you feel purchasing the put option with strike price at $300 and $12 premium is too expensive, what else can we do to reduce the cost of protective put position
Answer:
If you believe that the premium is too expensive, then you should try to purchase another put option with a lower strike price. This will probably reduce your potential profits, but it will also decrease the amount of money that you will pay for the put options. For example, a put option with a strike price of $290 might be worth $5.
The opportunity cost of capital, used to calculate the base-case for adjusted present value analyses, can be thought of as Multiple Choice the promised yield rather than the expected yield of an investment. the WACC of an all-equity financed version of the firm. the return on the opportunities exploited by a firm's competitors. the rate corresponding to an average debt level among firms in the industry.
Answer:
the WACC of an all-equity financed version of the firm.
Explanation:
WACC = weight of equity x cost of equity + weight of debt x cost of debt x (1 - tax rate)
for a project to be accepted, the internal rate of return should be higher than the WACC
Maintenance Department: budgeted variable cost, $2 per case; and budgeted total fixed cost, $830,000. Paints Division: percentage of peak period capacity required; 30%; and actual cases, 20,000. Stains Division: percentage of peak period capacity required, 70%; and actual cases, 63,000. For performance evaluation purposes, the amount the Maintenance Department cost should be charged to the Paints Division at the end of the year is _
Answer: $289,000
Explanation:
For performance evaluation purposes, the amount of Maintenance Department cost that should be charged to the Paints Division at the end of the year will be calculated thus:
= (20000 × $2) + ($830,000 × 30%)
= $40,000 + ($830000 × 0.3)
= $40000 + $249,000
= $289,000
Consider a market with two firms, Hewlett-Packard (HP) and Dell, that sell printers. Both companies must choose whether to charge a high price ($) or a low price ($) for their printers. These price strategies with corresponding profits are depicted in the payoff matrixLOADING... to the right. HP's profits are in red and Dell's are in blue. Suppose HP and Dell are initially at the game's Nash equilibrium. Then, HP and Dell advertise that they will match any lower price of their competitors. For example, if HP charges $, then Dell will match that price and also charge $. What effect will matching prices have on profits (relative to the Nash equilibrium without price matching)? Assuming HP and Dell can coordinate to maximize profits, HP's profit will change by $ nothing and Dell's profit will change by nothing. (Enter either positive or negative numeric responses using integers.)
Answer: Hello your question is poorly written attached below is the complete question
answer : Change in profits
= $55 , $55
Explanation:
From the Question( Nash equilibrium ) we can see that there four combination of charges
HP, Dell ($450, $450 ) : profit ( $100, $100 )
HP ,Dell ($450, $250 ) :
HP, Dell ( $250, $450 )
HP, Dell ( $250, $250 ) profit ( $45, $45 )
when lower price is adopted profit made = ( $45 , $45 )
when Higher price is adopted profit made = ( $100, $100 )
Hence The effect of matching prices on profits (relative to the Nash equilibrium without price matching)
Assuming HP and Dell coordinates
HP's profit will changes by = $100 - $45 = $55
Dell's profit will change by = $100 - $45 = $55
why do we have to consider the risks before we invest?
answer:
your investment value might rise or fall because of market conditions, therefore it is always a smart to consider the risks in investing before you invest. if the risk is huge, then you might not want to invest due to the fear of losing your money.
explanation:
in finance, risk refers to the degree of uncertainty and/or potential financial loss inherent in an investment decisionin general, as investment risks rise, investors seek higher returns to compensate themselves for taking such risksevery saving and investment product has different risks and returnsSuppose your college or organization is considering a new project to develop an information system that would allow all employees, students, and customers to access and maintain their own human resources information, such as address, marital status, and tax information. The main benefits of the system would be a reduction in human resources personnel and more accurate information. For example, if an employee, student, or customer had a new telephone number or email address, he or she would be responsible for entering the data in the new system. The new system would also allow employees to change their tax withholdings or pension plan contributions. Identify five potential risks for this new project and be sure to list some negative and positive risks.
Required:
Provide a detailed description of each risk and propose strategies for addressing each risk.
Answer:
The description of the given question is explained below in the explanation portion.
Explanation:
Risk 1: New customer
Our advantage comes from developing strong client relationships, that also typically lead to other initiatives with this client.Risk 2: Poor cost estimate
It's always research linked towards the building of educational business process, therefore a complicated project consisting of several components including students, instructional personnel, and clients.Risk 3: Difficult to maintain
Throughout the long term, disproportionately numerous people will be able to use that same technology in some of these circumstances.(Pension Expense, Journal Entries, Amortization of Loss) Gottschalk Company sponsors a defined benefit plan for its 100 employees. On January 1, 2017, the company’s actuary provided the following information.
Accumulated other comprehensive loss (PSC) $150,000
Pension plan assets (fair value and market-related asset value) 200,000
Accumulated benefit obligation 260,000
Projected benefi t obligation 380,000
The average remaining service period for the participating employees is 10 years. All employees are expected to receive benefits under the plan. On December 31, 2017, the actuary calculated that the present value of future benefits earned for employee services rendered in the current year amounted to $52,000; the projected benefit obligation was $490,000; fair value of pension assets was $276,000; the accumulated benefit obligation amounted to $365,000. The expected return on plan assets and the discount rate on the projected benefit obligation were both 10%. The actual return on plan assets is $11,000. The company’s current year’s contribution to the pension plan amounted to $65,000. No benefits were paid during the year.
Instructions
(a) Determine the components of pension expense that the company would recognize in 2017. (With only one year involved, you need not prepare a worksheet.)
(b) Prepare the journal entry to record the pension expense and the company’s funding of the pension plan in 2017.
(c) Compute the amount of the 2017 increase/decrease in gains or losses and the amount to be amortized in 2017 and 2018.
(d) Indicate the pension amounts reported in the financial statement as of December 31, 2017.
Answer: See attachment and explanation.
Explanation:
a. Determine the components of pension expense that the company would recognize in 2017.
Service cost = $52,000
Add: Interest on projected benefit obligation = $380,000 × 10% = $38,000
Less: Actual return on plan asset = ($11000)
Less: Unexpected loss = 200,000 × 10% - 11,000 = ($9000)
Ammortization of prior service cost = $15000
Pension expense = $85,000
b. The journal entry to record the pension expense and the company’s funding of the pension plan in 2017 has been attached.
c. The amount of the 2017 increase/decrease in gains or losses and the amount to be amortized in 2017 and 2018 has been attached.
d. The pension amounts reported in the financial statement as of December 31, 2017 will be $85,000.