The December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $1,405,000, $141,000 in the common stock account, and $2,660,000 in the additional paid-in surplus account. The December 31, 2016, balance sheet showed long-term debt of $1,590,000, $151,000 in the common stock account, and $2,960,000 in the additional paid-in surplus account. The 2016 income statement showed an interest expense of $94,500 and the company paid out $146,000 in cash dividends during 2016. The firm’s net capital spending for 2016 was $970,000, and the firm reduced its net working capital investment by $126,000.
What was the firm's 2016 operating cash flow, or OCF? (A negative answer should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Answers
Answer: $589,500
Explanation:
The cash flow to the creditors in 2016 will be calculated as:
= $94,500 – ($1,590,000 - $1,405,000)
= $94,500 – $1,590,000 + $1,405,000
= -$90,500
For the shareholders, the cash flow in 2016 will be:
= $146,000 – [($151,000 + $2,960,000) – ($141,000 + $2,660,000)]
= -$164,000
Capital spending = $970,000
Cash flow due to the net working capital investment = -$126,000
OCF
= -$90,500 + (-$164,000) + $970,000 + (-$126,000)
= $589,500
Related Questions
The unadjusted trial balance of Sheridan Exposure Inc. had these balances for the following select accounts: Supplies $4,300, Unearned Service Revenue $9,250, and Prepaid Rent $1,920. At the end of the period, a count showed $960 of supplies on hand. Services of $4,100 had been performed related to the unearned revenue account, and one month’s worth of rent, worth $40, had been consumed by sheridan exposure. Record the required adjusting entries related to these events. (List all debit entries before credit entries. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answers
No Entry is required for the Supplies, Unearned Service Revenue, and Prepaid Rent accounts since their balances have been adjusted through the adjusting entries above.
To record the required adjusting entries related to the events mentioned, we need to consider the changes in the account balances and adjust them accordingly. Here are the adjusting entries for Sheridan Exposure Inc.:
Supplies:
Debit: Supplies Expense ($4,300 - $960) = $3,340
Credit: Supplies ($4,300 - $960) = $3,340
Explanation: The supplies on hand decreased by $960, indicating that $960 worth of supplies were used during the period. Therefore, we need to recognize the expense by debiting Supplies Expense and reduce the Supplies account balance with a credit.
Unearned Service Revenue:
Debit: Unearned Service Revenue ($9,250 - $4,100) = $5,150
Credit: Service Revenue ($9,250 - $4,100) = $5,150
Explanation: Services worth $4,100 were performed, reducing the unearned service revenue. We need to recognize the revenue by debiting the Unearned Service Revenue account and crediting the Service Revenue account.
Prepaid Rent:
Debit: Rent Expense ($40)
Credit: Prepaid Rent ($40)
Explanation: One month's worth of rent, amounting to $40, has been consumed. We need to recognize the expense by debiting Rent Expense and reduce the Prepaid Rent account balance with a credit.
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Two European Courts are the Court of Justice of the European Union and the European Court of Copyrights.
False
True
Answers
Using Activity Based Costing, calculate the rate for each cost driver.
13 marks b) Using activity based budgeting, prepare a budgeted yearly operating statement for
Aero3D Ltd. Show the following separately, within the statement.
i. The budgeted output for each product per year;
ii. The contribution to profits for each product and in total before charging activity based costs;
iii. The profit for each product and in total after charging activity based costs but before charging core costs (non-activity based costs);
iv. The total profit after charging core based costs.
Answers
i. Budgeted output for each product per year is XS PRO: 3,400 units and POLYX: 1,800 units
ii. Contribution to profits for each product and in total before charging activity-based costs are XS PRO: £561,000 + POLYX: £379,800 (£940,800)
iii. Profit for each product and in total after charging activity-based costs but before charging core costs are XS PRO: Profit after activity-based costs and POLYX: Profit after activity-based costs
iv. Total profit after charging core costs: Total profit after charging core costs
How did we arrive at these values?To calculate the rate for each cost driver using Activity Based Costing (ABC), divide the total cost of each cost pool by its respective cost driver.
a) Calculation of rates for each cost driver:
1. Condensing machine:
Rate = Total cost of condensing machine / Number of production batches
Rate = £450,000 / 60
Rate = £7,500 per batch
2. Shaping machine:
Rate = Total cost of shaping machine / Shaping machine hours
Rate = £130,000 / (3,400 × 0.50 + 1,800 × 0.70)
Rate = £130,000 / 2,400
Rate = £54.17 per shaping machine hour
3. Manual handling of material:
Rate = Total cost of manual handling of material / Weight of material handled
Rate = £55,000 / (3,400 × 1.2 + 1,800 × 1.4)
Rate = £55,000 / 7,040
Rate = £7.80 per kilogram of material handled
b) Budgeted yearly operating statement for Aero3D Ltd:
i. Budgeted output for each product per year:
- XS PRO: 3,400 units
- POLYX: 1,800 units
ii. Contribution to profits for each product and in total before charging activity-based costs:
Contribution per unit = Selling price - Direct material cost - Direct labor cost
- XS PRO: £175 - £8 - £2 = £165 per unit
- POLYX: £225 - £10 - £4 = £211 per unit
Contribution before activity-based costs:
- XS PRO: £165 × 3,400 = £561,000
- POLYX: £211 × 1,800 = £379,800
Total contribution = £561,000 + £379,800 = £940,800
iii. Profit for each product and in total after charging activity-based costs but before charging core costs:
Cost breakdown per unit:
- XS PRO:
- Condensing machine cost = Rate (Condensing machine) × Number of production batches
- Shaping machine cost = Rate (Shaping machine) × Shaping machine hours
- Manual handling cost = Rate (Manual handling of material) × Weight of material handled
Total cost per unit = Direct material cost + Direct labor cost + Condensing machine cost + Shaping machine cost + Manual handling cost
- POLYX:
- Condensing machine cost = Rate (Condensing machine) × Number of production batches
- Shaping machine cost = Rate (Shaping machine) × Shaping machine hours
- Manual handling cost = Rate (Manual handling of material) × Weight of material handled
Total cost per unit = Direct material cost + Direct labor cost + Condensing machine cost + Shaping machine cost + Manual handling cost
Profit after activity-based costs but before core costs:
- XS PRO: Selling price - Total cost per unit
- POLYX: Selling price - Total cost per unit
iv. Total profit after charging core costs:
Total profit = Total contribution - Core costs
Since the core costs are given as a fixed amount and not linked to any activity or cost driver, they are not allocated using the ABC method.
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The worst crash rate involving fatalities is in the age group of drivers ...
A. ages 21 to 25.
B. ages 19 years old and younger.
C. ages 75 and older.
Answers
Answer:
The age group with the most fatal crashes is drivers between the ages of 25 and 34. There are nearly 1,000 more deaths per year among 25- to 34-year-olds than drivers under 25.
The age group with the worst crash rate involving fatalities is generally the 19 years and younger group. This is largely due to factors like inexperience and risk-taking behavior. However, statistics can vary and elderly drivers can also have higher crash rates.
Explanation:Based on statistical data, the age group with the worst crash rate involving fatalities is typically B. ages 19 years old and younger. This is often due to a combination of inexperience, risk-taking behavior, and lack of maturity. However, it's important to note that numbers can vary slightly depending on the region and the specific year being considered. It's also worth mentioning that older drivers, specifically those ages 75 and older, can also have higher crash rates due to factors such as declining health conditions and slower reaction times.
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Apex project 1.3.1 evaluating the economy
answer
Answers
Elena says that 6% interest compounded semi-annually is the same as 1% interest compounded every month: she reasons they are the same because they are both a 12% nominal annual interest rate. Is Elena correct that these two situations both offer a 12% nominal annual interest rate?
Answers
Elena is not correct in the two situations.
What is the effective annual rate?Effective annual rate is the interest rate when the effects of compounding is taken account for. In order to determine if Elena is correct, the effective annual rate has to be calculated.
Effective annual rate = (1 + APR / m ) ^m - 1
M = number of compounding
(1 + 0.12 / 12)^12 - 1 = 12.68%
(1 + 0.12 / 2)^2 - 1 = 12.36%
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SAPPY HAD A LITTLE LAM, No he didn’t. True or false?
Answers
On average, our representatives enroll one customer every 3 hours, while top performers make one sale per hour. How would you plan your workweek to maximize your earnings?*
Answers
Plan your workweek to maximize your earnings Identify peak sales hours, Set ambitious goals, Allocate more time during high-performance hours, Continuous improvement, Efficient time management, Develop strong customer relationships, and Continuous learning.
To maximize earnings in this scenario, it is important to strategically plan the workweek and focus on increasing the number of customer enrollments. Here is a potential plan to maximize earnings:
1. Identify peak sales hours: Analyze the data and determine the hours or time slots when sales are most likely to occur. This could be based on historical data or observations of customer behavior. Allocate more time during these peak hours to capitalize on potential sales opportunities.
2. Set ambitious goals: Aim to achieve or exceed the performance of top performers by setting ambitious sales goals. This mindset will drive motivation and focus throughout the workweek.
3. Allocate more time during high-performance hours: Dedicate a larger portion of the workweek to the hours when top performers make one sale per hour. By increasing the number of hours during these periods, there is a higher likelihood of securing more customer enrollments.
4. Continuous improvement: Regularly analyze and reflect on sales techniques and strategies. Identify areas for improvement and seek ways to refine your approach. This could involve studying successful sales tactics, attending sales training sessions, or seeking feedback from experienced colleagues or mentors.
5. Efficient time management: Optimize time management skills to ensure productivity during working hours. Eliminate distractions, prioritize tasks, and maintain a focused and organized work environment. This will help maximize the number of customer interactions and increase the chances of securing enrollments.
6. Develop strong customer relationships: Emphasize building rapport and establishing strong connections with potential customers. Focus on active listening, understanding their needs, and providing personalized solutions. By developing trust and fostering positive relationships, the likelihood of successful enrollments can increase.
7. Continuous learning: Stay updated on industry trends, product knowledge, and competitor offerings. This will enable you to effectively address customer inquiries, overcome objections, and provide value-added insights during sales interactions.
By implementing these strategies, planning the workweek to prioritize peak sales hours, setting ambitious goals, improving sales techniques, and managing time efficiently, you can increase the likelihood of maximizing earnings by securing a higher number of customer enrollments.
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a company purchased new furniture at a cost of $30,000 on september 30, the furniture is estimated to have a useful life of 4 years and a salvage value of $3,600. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the furniture for the first year ended december 31
Answers
$412.5
Explanation:
(cost - salvage) ÷4
Then multiply the answer by 3/48
What is something you would buy (or buy more of) if its price dropped? What is it about this product that appeals to you?
Why do you think this product's price is at its curent level?
Answers
Answer:
bath bomb
Explanation:
because there really pretty, and i really dont know if this helped you but here you go
Four fundamental factors affect the cost of money:
1. The return that borrowers expect to earn on their investments
2. The preference of savers to spend their income in the current period rather than delay their consumption until some future period.
3. The risks associated with the investment
4. Expected inflation
Consider the following statements that address these factors, and indicate if you think each statement is true or false.
a. On average and everything else held constant, consumers prefer deferred consumption spending to immediate spending. On average and everything else held constant, an investment that can provide a 4% return should attract more investment capital from savers/investors than an otherwise identical investment that can generate a 12% return.
b. An investment that can provide a 10% return should attract more investment capital than an otherwise identical investment that can only provide a 6% return.
c. On average and everything else held constant, 30-year U.S. Treasury bonds should expect to exhibit a smaller maturity premium than a 1-year U.S. Treasury bill.
d. All things being equal, savers and investors expect to receive some amount of maturity premium as compensation for their deferred consumption.
Answers
Given the four fundamental factors that affect the cost of money, only options b and d are correct.
Statement b is true:
When people invest their money, they are foregoing consumption in that current period that they are in.
They expect their invested capital to yield them interests as compensation for not spending the money earlier.
Statement d is true:
When people invest, what they look out for are risks and most importantly the returns that they would get from investing their capital.
A 10% investment return is greater than a 6% return. Because this return is higher, it would therefore attract more capital investment.
Options a and c are false.
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Netflix.com allows people to watch television shows and movies on the Internet. Netflix.com's business opportunity was made possible by ________ that enhanced the ability of television shows and movies to be uploaded to the Internet and played by anyone with a suitable computer and an Internet connection.
Answers
your mom and dad and brodjejdjd
Jim Murray and Al Sming sold a total of 600 camcorders. Jim sold five times as many
camcorders as AL. How many did each sell?
Answers
Answer:
3,000
Explanation:
Hope it helps
Clean Air management pays income taxes at a rate of 30% on capital gains. At December 31, 2000, the company owns marketable securities that cost Rs. 50,000 but that have current market value of Rs. 180,000.
(a) How will the users of Clean Air’s financial statements be made aware of this substantial increase in the market value of the company’s investments?
(b) As of December 31, 2000 how much income tax has Clean Air paid on the increase in the value of these investments? Explain.
(c) What effect will this transaction have on Clean Air’s income tax obligation for 2001?
Answers
(a) The users of Clean Air's financial statements will be made aware of this substantial increase in the market value of the company's investments through the company's balance sheet.
(b) As of December 31, 2000, Clean Air has not paid any income tax on the increase in the value of these investments, as the company only pays taxes on the actual sale of the investments, not on their increase in value.
(c) If Clean Air chooses to sell these investments in 2001 and realizes a capital gain, the company will be obligated to pay income tax on that gain at a rate of 30%. The amount of income tax obligation will be calculated by multiplying the capital gain by the tax rate (30%). If the company does not sell the investments, there will be no effect on the company's income tax obligation for 2001.
How to explain the financial statement?This material increase in the market value of the Company's interests will be disclosed to the users of Clean Air's financial statements through the Company's balance sheet.
Since the corporation only pays taxes on the actual sale of the investments, not on their increase in value, as of December 31, 2000, Clean Air has not paid any income tax on the increase in the value of these investments.
The balance sheet will show the market value of the investments as an asset, and any increase in value will be reflected in the difference between the cost and the current market value.
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(Economics)
In an essay of at least two well-developed paragraphs, explain the global benefits of international trade and multinational corporations.
Answers
International trade refers to the exchange of goods and services across national borders. It plays a significant role in promoting economic growth and providing several global benefits.
One of the primary advantages of international trade is that it allows countries to specialize in producing goods and services in which they have a comparative advantage. This means that countries can focus on producing goods that they can produce more efficiently and at a lower cost compared to other countries. As a result, resources are allocated more efficiently, leading to increased productivity and higher standards of living.Furthermore, international trade enables countries to access a wider variety of goods and services that may not be available domestically. This increases consumer choices and provides opportunities for individuals to enjoy a higher quality of life. For example, consumers in a landlocked country can still enjoy fresh seafood by importing it from coastal countries. Similarly, individuals in colder climates can purchase tropical fruits from countries where they are grown.Multinational corporations (MNCs) also contribute to the global benefits of international trade. These are companies that operate in multiple countries, with business activities ranging from production to distribution. MNCs play a crucial role in facilitating international trade by establishing global supply chains, investing in foreign markets, and creating jobs. They bring capital, technology, and managerial expertise to host countries, which can lead to economic development and improved living standards.Moreover, MNCs often engage in research and development (R&D) activities, driving innovation and technological advancements. This can have far-reaching benefits for both the host country and the global economy. For instance, a multinational pharmaceutical company conducting R&D in a developing country may discover new drugs or medical treatments that can benefit people worldwide.In conclusion, international trade and multinational corporations provide numerous global benefits. They promote specialization, resource allocation efficiency, and access to a wider variety of goods and services. Additionally, MNCs contribute to economic development, job creation, innovation, and technological advancements. Overall, international trade and MNCs play a crucial role in fostering economic growth and improving the well-being of individuals and nations around the world.
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Which conclusion does this graph most support?
100
Product A
75
Demand
50
Product B
25
0
$10 $15 $20
Price
$25
A. Product A is closer to equilibrium price than product B.
B. Product B is closer to equilibrium price than product A.
C. Product A has more elastic demand than product B.
D. Product A has more inelastic demand than product B.
Answers
Answer:
C. Product A has more elastic demand than product B.
Explanation:
The graph plotted above shows the quantity demanded for 2 products in relation to their prices.
Looking at the graph, we visually conclude that product A is more responsive to a change in price, compared to how responsive product B is to a change in price.
Invariably, a change in the price of commodity A causes a greater change in the quantity demanded, compared to a change in quantity demanded for product B, with almost the same change in price.
Option C is the answer.
Answer:
The correct answer is
Product B has more inelastic demand than product A !!!!
Explanation:
Trust me its correct!
You choice answers may look different but if you have this one then its correct! I got it right
A retailer purchases merchandise with a catalog list price of $70,000. The retailer receives a 25% trade discount and has credit terms of 2/10, n/30. How much cash will be needed to pay this invoice within the discount period
Answers
If a retailer acquires goods with a $70,000 catalog list price. The sum of $51,450 in cash is required to settle this invoice during the discount period.
How much Cash is needed to pay the invoice?The first step is to use this method to determine the Price after Trade Discount.
Catalog price - trade discount = the final price.
Price after Trade Discount = $70,000 - (25% × $70,000)
Price after Trade Discount = $70,000 - $17,500
Price after Trade Discount = $52,500
Second step :
to calculate the Cash required to pay invoice using this formula
Cash required to pay invoice = Price after Trade Discount - Purchase Discount
Let plug in the formula
Cash required to pay invoice = $52,500 - (2% × $52,500)
Cash required to pay invoice = $52,500 - $1050
Cash required to pay invoice = $51,450
Therefore the amount of cash needed is: $51,450
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.What market needs are common to these students that justify combining them onto a single segment in studying the market for your Wend's restaurant?
Answers
The market needs that justify combining these students onto a single segment for studying the market for your Wendy's restaurant include convenience, affordability, and a preference for quick service. Students often have busy schedules, with classes and various commitments, so they seek convenient dining options that fit their time constraints. By offering a location near the campus or easily accessible to students, your Wendy's restaurant can fulfill this need for convenience.
Moreover, affordability is a common market need among students. Many students have limited budgets and look for affordable food options that provide value for their money. By offering competitive prices, meal deals, or student discounts, your Wendy's restaurant can attract and cater to this price-sensitive segment.
Additionally, students often prefer quick service due to their time limitations. They may have short breaks between classes or need to grab a meal on the go. By providing efficient service and minimizing waiting times, your Wendy's restaurant can meet their need for quick and hassle-free dining experiences.
By considering these common market needs of convenience, affordability, and quick service, you can effectively target and serve the student segment in studying the market for your Wendy's restaurant. Conducting further research and gathering insights from students in your specific market will help refine and tailor your offerings to better meet their needs.
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A favorable direct materials price variance might lead to an unfavorable direct materials quantity variance because the company purchased inferior materials. true or false
Answers
A favorable direct materials price variance might lead to an unfavorable direct materials quantity variance because the company purchased inferior materials. This statement was correct. Thus, option (a) is correct.
What is direct materials?The term direct materials refers to the manufactured product components such as integrated circuits, screen, camera modules and the other components. It was the used in the cost accounting. The material are they directly manufacture the goods and the services.
The concepts are the actual costs related to materials as result on the more standards outcomes is called the unfavorable direct materials. The favorable outcome of the fewer standards outcomes. The concept is the direct material price is fewer than the standard direct material price.
As a result, the significance of the direct materials are the aforementioned. Therefore, option (a) is correct.
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Explain why natural resources need to be conserved
Answers
Explanation:
As the population of the world is increasing at an alarming rate, the consumption of natural resources is also increasing. Hence, these resources should be conserved to maintain ecological balance and save them for future generations.
please rate........
Answer:
natural resources need to be conserved because it give us many useful things or materials like shelter,natural beauty,source of food,alternative energy and so on
(100 POINTS AND BEAINLYESt)
(Question 2 Only)
Answers
Answer:
D
Explanation:
Humans are always looking for things to help improve their daily lives, seeing advertisements showcase new items for them and get them to buy their stuff.
Answer:
ur jew for this
Explanation:
The political candidates keep talking to the citizens about the possibility of a recession what would most likely happen if a country experience a recession
Answers
The thing that would MOST likely happen in this case if a country experiences a recession is D.Businesses will suffer from decreased sales and profits, eventually leading to closure
What is recession ?Recession, in economics, can be described as the downward trend in the business cycle.
Itshouldbe nopted that this can be seen as the decline in production and employment, whereby the incomes and spending of households to decline and as a result of thisthere would be hunger sa well as hardship in the country for this cause.
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missig part
What would MOST likely happen if a country experiences a recession?
A.
Feeling confident in the economy, people will begin to spend money more freely.
B.
Jobs will be more plentiful, and companies will be doing a lot of hiring.
C.
Families will start to purchase larger and more expensive homes.
D.
Businesses will suffer from decreased sales and profits, eventually leading to
Required Materials
Word processing software
Imagine you and a friend are in college. You decide you want to open a coffee shop on campus next to the university’s dining room. You make your appeal to the administration by expressing how having a coffee shop on university grounds will help fellow students save time and money since they will not have to go off campus to purchase their favorite hot beverages and baked goods. The administration is open to the idea and praises your entrepreneurial spirit. They ask you to research the business ownership structure that would be most appropriate by comparing and contrasting the structures, and report back to them in two weeks.
Follow these steps to complete this activity. You will create a chart, a Venn diagram, and a report based on the directions below.
Step 1: Compare and Contrast Chart
Create a compare and contrast chart of the following business structures:
sole proprietorship
partnership
limited liability corporation
Include at least three advantages and disadvantages of each structure, including the legal implications of each ownership structure.
Step 2: Create a Venn diagram
Create a Venn diagram transferring the details from the chart.
Identify those characteristics that are similar in the cross section.
Place contrasting characteristics in the outer rings.
Step 3: Compile a Report
Determine which structure would be most appropriate for the coffee shop.
Compile a report identifying the structure you chose.
Provide three reasons explaining your choice.
Answers
The steps are given below
Business Structure Advantages Disadvantages
Sole Proprietorship Easy to start and manage Unlimited personal liability
Full control over business operations Limited access to capital and credit
Profits are taxed as personal income Difficulty attracting top talent
Partnership Shared management and financial responsibility Unlimited personal liability
Ability to share risk and expertise Potential for disputes between partners
Flexibility in decision making Profits are taxed as personal income
Limited Liability Company Limited personal liability for owners More complex and expensive to set up than other structures
Flexible taxation options Less flexibility in ownership and management structure
Enhanced credibility and access to funding Compliance requirements and ongoing administrative tasks
Step 3: Compile a Report
After considering the advantages and disadvantages of each business structure, we recommend the limited liability company (LLC) for the coffee shop.
First, an LLC provides limited personal liability for owners, meaning that personal assets are protected from business liabilities.
Second, an LLC offers flexibility in taxation options, allowing the business to choose between being taxed as a partnership or a corporation. Lastly, an LLC can enhance the credibility of the business, making it easier to attract funding from investors or lenders.
Overall, an LLC provides the necessary protection and flexibility for the coffee shop to operate successfully while minimizing personal risk.
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___________ is a way of saving a file so it can be used by a different program. A. Selecting B. Exporting C. Citing D. Formatting Please select the best answer from the choices provided A B C D Mark this and return
Answers
Answer:
B. Exporting
Explanation:
NPV and maximum return A firm can purchase new equipment for a $ 17,000 initial investment. The equipment generates an annual after-tax cash inflow of $ 4,000 for 7 years. a. Determine the net present value (NPV) of the asset, assuming that the firm has a cost of capital of 13%. Is the project acceptable? b. Determine the maximum required rate of return that the firm can have and still accept the asset. a. The net present value (NPV) of the new equipment is $ 690.44. (Round to the nearest cent.) Part 2 Based on its NPV, is the new equipment acceptable? (Select the best answer below.) Yes Your answer is correct. No Part 3 b. The maximum required rate of return the firm can have and still accept the new equipment is enter your response here%. (Round to two decimal places.)
Answers
The net present value (NPV) of the new equipment is $ 690.44. .
Based on the NPV, the project is acceptable.
The maximum required rate of return the firm can have is 14.29%.
What is the NPV?Net present value is the present value of after-tax cash flows from an investment less the amount invested. Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable
Net present value = -17,000 + 4000 / 1.13 + 4000 / 1.13² + 4000 / 1.13³ + 4000 / 1.13^4 + 4000 / 1.13^5 + 4000 / 1.13^6 + 4000 / 1.13^7 = $690.44
The maximum required rate of return is the internal rate of return. Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
IRR = 14.29%
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organizing can be defined as
Answers
Organizing simply refers to the execution of plans, by assigning jobs as well as the successful deployment of resources for a specific result/aim/goal.
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The comparative balance sheets for 2021 and 2020 are given below for Surmise Company. Net income for 2021 was $88 million.
Required:
Prepare the statement of cash flows of Surmise Company for the year ended December 31, 2021. Use the indirect method to present cash flows from operating activities because you do not have sufficient information to use the direct method. You will need to make reasonable assumptions concerning the reasons for changes in some account balances. A spreadsheet or T-account analysis will be helpful. (Hint: The right to use a building was acquired with a seven-year lease agreement. Annual lease payments of $8 million are paid at January 1 of each year starting in 2021.) (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)
Please see attachment for comparative balance sheets
Answers
It can be deduced that the cash flow shows that the net cash provided by operating activities will be $58 million.
How to compute the statement of cash flowCash flow from operating activities
Net income = $54 million
Add: Depreciation $15 million.
Add: Bad debt = $6 million
Add: Amortization expense = $3
Changes in operating assets and liabilities
Decrease in account receivable = $4 million
Increase in inventory = ($9 million)
Increase in prepaid expense = ($2 million)
Decrease in account payable = ($10 million)
Decrease in accrued liability = ($3 million)
Net cash provided by operating activities = $58 million
In conclusion, the net cash provided by operating activities is $58 million.
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Agan Interior Design provides home and office decorating assistance to its customers. In normal operation, an average of 2.9 customers arrive each hour. One design consultant is available to answer customer questions and make product recommendations. The consultant averages 10 minutes with each customer.
A. Compute the operating characteristics of the customer waiting line, assuming Poisson arrivals and exponential service times. If required, round your answers to four decimal places.
Lq =
L =
Wq = hours
W = hours
Pw =
B. Service goals dictate that an arriving customer should not wait for service more than an average of 6 minutes. Is this goal being met? If not, what action do you recommend? Yes or No
C. If the consultant can reduce the average time spent per customer to 8 minutes, what is the mean service rate? If required, round your answer to one decimal place.
------ customer per hour
Will the service goal be met? Yes or No
Answers
A. Operating characteristics:
Lq ≈ 0.5017, L ≈ 0.9377, Wq ≈ 0.1730 hours, W ≈ 0.5063 hours, Pw ≈ 0.4833
B. Service goal: Not met. Action recommended.
C. Mean service rate: 7.5 customers/hour.
If the consultant can reduce the average time spent per customer to 8 minutes, then the average time a customer spends in the system will be 0.33 hours (20 minutes).
A. To compute the operating characteristics of the customer waiting line:
Arrival rate (λ) = 2.9 customers/hour
Service rate (μ) = 60 minutes / 10 minutes per customer = 6 customers/hour
Average number of customers in the queue (Lq):
Lq = (λ^2) / (μ * (μ - λ)) ≈ 0.5017
Average number of customers in the system (L):
L = λ / (μ - λ) ≈ 0.9377
Average waiting time in the queue (Wq):
Wq = Lq / λ ≈ 0.1730 hours (approximately 10.38 minutes)
Average waiting time in the system (W):
W = Wq + (1 / μ) ≈ 0.5063 hours (approximately 30.38 minutes)
Probability of a customer waiting in the queue (Pw):
Pw = λ / μ ≈ 0.4833
B. The service goal is that an arriving customer should not wait for service more than an average of 6 minutes. However, the average waiting time in the system (W) is approximately 30.38 minutes, exceeding the goal. Therefore, the service goal is not being met.
Action recommendation: To meet the service goal, I would recommend taking the following actions:
Increase staffing: Hire additional design consultants to handle customer questions and product recommendations.
Improve efficiency: Streamline processes and provide training to the consultant to reduce the time spent with each customer.
Appointment scheduling: Implement a system for customers to schedule appointments, ensuring dedicated time slots for each customer and minimizing waiting times.
Self-service options: Provide self-service resources or online tools where customers can access basic information and make preliminary decisions, reducing the need for extensive consultations.
C. If the consultant can reduce the average time spent per customer to 8 minutes, the mean service rate can be calculated as follows:
Mean service rate (μ) = 60 minutes / 8 minutes per customer ≈ 7.5 customers/hour
Will the service goal be met? Yes
If the consultant can reduce the average time spent per customer to 8 minutes, then the average time a customer spends in the system will be 0.33 hours (20 minutes). This is less than the service goal of 6 minutes, so the goal will be met.
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Which of the following statements concerning internal controls is true? Multiple Choice Strong internal controls cannot be circumvented. A system of internal controls is designed to prevent or detect errors and fraud. Internal controls are limited to the policies and procedures used to protect the company from fraud. The control procedure, separation of duties, prohibits the employment of a husband and wife or other closely related parties within the same company.
Answers
The True statement about internal controls is B. A system of internal controls is designed to prevent or detect errors and fraud.
Internal Controls are the techniques that an entity institutes to ensure the integrity of financial and accounting information, promote accountability of its employees, and prevent fraudulent activities.Strong internal controls can still be circumvented. Internal controls are not limited to company policies and procedures against fraud. The employment of a husband and wife or close relations in the same company is not prohibited by control procedures or separation of duties.Thus, the true statement about internal controls is B.
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Based on this home-buying situation: (a) What questions might Zoe and Luis be asked about their home-buying experience? (b) What lessons did you learn from their experience?
Answers
(a) The Zoe and Luis share the home-buying experience are:
Firstly, difficult to as preference home to purchase. Secondly to difficult, the transaction of the money as the medium of the online cash transaction.(b) Someone learns to the experience as the online transaction is too difficult as the purchase of the home as cash transaction are easier.
What is home?
The term "home" refer to the resident, the family are they stay with in the permanently. The home, another name, is the house. There are the two types of the home, permanent homes and rental homes.
(a) The Zoe and Luis share the home-buying experience are more difficult to search the home and the registry time as the transaction of the online are more difficult.
(b) Someone as to learn to the cash transaction are the more easily as compare to the online transaction. The fraud case chances are the more.
As a result, the home-buying experience as the aforementioned.
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